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HomeMy WebLinkAboutcc min 1994/10/25 MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA Tuesday, October 25, 1994 Council Chambers 6:12 p.m. Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Councilmembers Fox, Horton, Moore, Rindone, and Mayor Nader 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: August 10, 1994 (Joint Council/Governing Board of Southwestern Community College District, October 11, 1994 (Council), October 11, 1994 (Joint Council/Agency), October 18, 1994 (Council), and October 18, 1994 (Joint Council/Agency). MSC (Moore/Fox) to approve the minutes of August 10, 1994 (Joint Council/Governing Board of Southwestern Community College District), October 11, 1994 (Council), October 11, 1994 (Joint Council/Agency), October 18, 1994 (Council), and October 18, 1994 (Joint Council/Agency) as presented. Councilmember Rindone stated the minutes of 8/10/94 was the best effort the City Clerk could do as a tape was not available. He requested that the minutes be mended to reflect that they were incomplete as the tape was lost by the officials of Southwestern College. He felt the meeting would be important in the future regarding reference and did not want that fact to be omitted. MOTION: (Rindonc/Munre) to correct the minutes of 8/10/94 to include at the begiuniug of the minutes the following stateanent: "Minutes incomplete, tape was lost by the officials of Southwestern College and, therefore, the best recollection of the meeting as it took place is described below". Mayor Nader questioned whether the City Clerk had taken notes and if the minutes were based on those notes or if she or anyone else was aware of anything missing from the minutes. City Clerk Authelet stated the draft minutes had been circulated among staff for their input. Councilmember Moore stated kis statement had been omitted from the minutes. Mayor Nader suggested that a note be added that indicated that the minutes were based on the Clerk's notes and that the tape was lost. The only part of the motion that he had a concern with was stating that the minutes were incomplete. He did not know that they were incomplete because the tape was not available. VOTE ON MOTION: approved 4-1 with Nader opposed. VOTE ON MINUTES, AS AMENDED: approved unanimously. 4. SPECIAL ORDERS OF THE DAY: a. Report on KidzBiz Teen Club by Kathy Lembo, representing South Bay Community Services. Ms. Lembo announced that the Club was located at 825 Broadway in Chula Vista. The Club would open on November 14, Minutes October 25, 1994 Page 2 1994. Only youth 15 or over and under 21 would be allowed admittance. Funding for the project, in addition to City funding, came from the Jacobs Foundation ($50,000) and other private funding sources. b. Legislative Update - U.S. Congressman Bob Filner. Councilmember Rindone questioned where the City was regarding the development of a response to be proactive in receiving monies from the crime bill in the first round. He questioned if the monies were for new propms only or if they could be utilized for on-going programs. Mr. Goss responded that staff was coordinating with other agencies to keep on top of the issue. Staff would report back to Council next week. Congressman Filner stat~l it was his understanding that the money was there for the cities to decide how to spend. c. introduction of the Feaster Art Club by Dency Souval, Cultural Arts Commissioner, hi recognition of "National Arts & Humanities Month". CONSENT CALENDAR (Items pulled: 5b) BALANCE OF THE CONSENT CALENDAR OFI~ERED BY COUNCILMEMBER HORTON, reading of the text was waived, passed and approved with Item 5a trailed. 5. WRITTEN COMMUNICATIONS: a. Letter from the City Attorney stating there were no reportable actions taken from the Closed Session of 10/18/94. It is recommended that the letter be received and filed. b. Letter regarding administrative policy on use of sewer funds - Joseph W. Garcia, The People's Lobby, 484 Fifth Avenue, Chula Vista, CA 91910. The City Attorney is preparing an opinion, which will be distributed to Council Tuesday night. Pulled from the Consent Calendar. Mr. Boogaard stated his written opinion was not complete, but he could give a verbal report if Council so desired. ® Joseph W.Garcia, 484 Fifth Avenue, Chula Vista, CA, representing The Peoples Lobby, stated he preferred to continue the item until the opinion by the City Attorney was in writing and distribuWAl to the Council and himgelf. MSC eqader/Moore) to continue the item to await the written opinion of the City Attorney and ask staff to provide Coundl with a list of projects (in general terms) and their justification for using sewer funds. A copy of the report to he given to Mr. Garcia. Approved 4-0-1 with Rindone absent. Mr. Garcia stated he wanted to have the various issues and matters addressed individually as he had presented them in his letter. Mr. Boogasrd questioned if it was Council's desire to have him answer each question individually raised in the letter. Mayor Nader stated they all related to the appropriateness of using sewer funds for the items enumerated in Mr. Garcia's letter. He felt it was the City Manager's task to give Council the policy. Mr. Goss stated that management could respond to the individual question raised. I IF Minutes October :25, 1994 Page 3 c. Letter describing the benefits of the initiative, California Health Security Act (CHSA), and encouraging the City to adopt resolutions formally supporting Proposition 186 - Californians for Health Security, 5208 Claremoat Ave., Oakland, CA 94618. It is recommended that Council receive and file this request. d. Letter of resignation from the Cultural Arts Commission - Oscar Arias, 44 East Rienstsa St., Chula Vista, CA 91911. It is recommended that the resignation be accepted with regret and the City Clerk be directed to post immediately according to the Maddy Act in the Clerk's Office and the Public Library. 6. RESOLUTION 17690 WAIVING THE BIDDING PROCESS AND APPROVING THE PURCHASE OF FOUR 3M SELF-CHECK WORKSTATIONS - The Fiscal Year 1994/95 Capital Improvement Project budget contains fun& allocated for the purchase of four self check workstations. As 3M is the only manufacturer to supply a workstation that interfaces with the Library's INLEX automated circulation system, the Library seeks to waive the bidding process and purchase four units. Staff recommends approval of the resolution. (Library Director) 7. RESOLUTION 17691 APPROVING A GRANT APPLICATION IN THE AMOUNT OF $200,000 TO THE TOBACCO CONTROL SECTION, CALIFORNIA DEPARTMENT OF HEALTH SERVICES - The grant proposal developed by the Parks & Recreation Department, on behalf of the Chula Vista Youth Coalition, requests $200,000 over a 24 month period (1/1/95 - 12/31/96). Grant funding will be used to hire a part-time project coordinator through the Parks & Recreation Department, as well as augment the youth newspaper project sponsored by the City and South Bay Community Services' KidzBiz Program, the Youth ACTION Program, and other programs serving Chula Vista youth. Staff recommends approval of the resolution. (Director of Parks and Recreation) 8. RESOLUTION 17692 AMENDING SCHEDULE VI, SECTION 10.52.340 OF THE MUNICIPAL CODE RELATING TO PARKING TIME LIMITED ON CERTAIN STREETS; SHASTA STREET FROM DEL MAR AVENUE TO TWIN OAKS AVENUE, A PORTION OF THE 500 BLOCK OF DEL MAR AVENUE, A PORTION OF THE 200 BLOCK OF WHITNEY AVENUE -Pursuant to the provisions of Section 10.52.230 of the Municipal Cede, the City Engineer has determined that in the interest of minimizing traffic hazards and traffic congestion, and for the promotion of public safety, a resolution establishing a two-hour time limited parking restriction be established in the 500 block of Del Mar Avenue, the 200 block of Shasta Street and Whitney Avenue. Staff recommends approval of the resolution. (Director of Public Works) * * END OF CONSENT CALENDAR * * PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES 9. PUBLIC HEARING BILLING RESIDENTIAL SEWER CHARGES ON THE COUNTY PROPERTY TAX BILL AND NON-RESIDENTIAL SEWER CHARGES IN-HOUSE STARTING JULY 1, 1995 - Otey Water District and Sweetwater Authority notified the City that they wished to terminate the agreements to provide joint water/sewer billing effective 7/1/93. The City was suecessful in postponing the separation of billing for three years and in remm for Sweetwater Authority agreeing to extend the deadline to 7/1/95; the City agreed in writing to meet the deadline. Both water districts have expressed to the City that the 1995 date is firm. In June 1994, Council directed staff to proceed with plans to transfer sewer billing from Sweetwater Authority and Otay Water District to the County tax rolls for residential customers and to in-house billing for business customers effective 7/1/95. Staff recommends approval of the resolution. (Director of Public Works, Director of Finance end Director of Management & Information Services) RESOLUTION 17693 DECLARING THE CITY'S INTENTION TO TRANSFER SEWER CHARGES FROM THE SWEETWATER AUTHORITY AND OTAY WATER DISTRICT BILLS EFFECTIVE JULY 1, 1995, AND DIRECTING STAFF TO PROCEED WITH THE STEPS NECESSARY Minutes October 2.5, 1994 Page 4 TO BILL RESIDENTIAL SEWER AND STORM DRAIN CHARGES ON THE COUNTY PROPERTY TAX BILL AND NON-RESIDENTIAL AND MOBILE HOME PARK CHARGES IN-HOUSE Susan Cole, Principal Management Assistant, gave a brief review of the staff recommendation. A public information campaign was held to notify customers of the impending change in a timely manner and too discover any problems in the method chosen so it could be addressed prior to the change in the billing method. Ninety-one people attended the informational meetings held, 168 telephone calls were received, and 3 letters were received. Out of 262 contacts, the majority had questions only with i 11 expressing concern or complaints as to what the City was doing. Following that information staff modified their recommendation to bill mobile home parks in-house along with the cornmercial accounts. Staff would be working the San Diego County Housing Authority to see that the major portion of the sewer bill that was switched from the renter to the landlord was not counted as a rent increase on their rental caps. Staff would return to Council with a refund policy to recognize documented water savings due to retrofitting. Councilmember Fox referred to the letter to Council from the County Assessor in opposition to the staff recommendation and questioned if the fee per assessment cost part of the annual on-going cost was reflected in the staff report. He questioned if the Assessor was re-evaluating the fee due to possible action by the Chula Vista Council. Ms. Cole responded that was correct. Staff had no indication that it was being re-evaluated due to potential action by Council. The County also billed their sewer charges on the tax roll and therefore, it would also affect them if raised. Councilmember Moore questioned if all of the County's sewer billing was done through the tax rolls. Ms. Cole responded that it was the unincorporated areas of the County including industrial and commercial. The cities of Coronado and Imperial Beach all billed on the tax rolls. Councilmember Herton questioned why the City would receive such a letter from the Assessor if it was already being done in the County and other cities. Mayor Nader stated the Assessor had stated that he did not like the process and wished it was not being done that way. The City had been notified that the water districts would not allow the City to continue billing on their statements. Councilmember Rindone questioned if there was a legal problem or advantage with having the service fees on the tax bill, i.e. a deduction for income tax purposes. He wanted staff to clarify that issue and whether it would allow the taxpayer to utilize that as a deduction on their income taxes. Robert Pewell, Director of Finance, stated it was fairly clear that it was not tax deductible. There was pending federal legislation that would require the county tax collector to segregate the information for the taxpayer as to what was and was not deductible. That responsibility was being put on the county tax collectors. This being the time and place as advertised, the public hearing was declared open. · Joseph Garcia, 484 Fifth Avenue, Chula Vista, CA, representing the People's Lobby, stated the sewer fees should be adjusted to cover the costs of the department and should not be a bank for the City. He felt the collection of the sewer fees on the tax bill would be in direct violation of the City Charter. Councilmember Moore called for a point of order stating that the item before Council was the transfer of billing to the tax rolls. Minute~ October 25, 1994 Page 5 Mayor Nader requested that Mr. Gareia focus his comments on that issue and he would be recognized regarding his letter later in the meeting. Mr. Garcia stated the Charter provided for the collection of the fees from the ratepayers and he did not feel it should be transferred. · Robert E. Severson, P. O. Box 1027, National City, CA, repreeenting the San Diego County Apartment Association, stated he was the owner of two single family residences in the City. Hefeltaehange in the billing would shift a $200 expense to him and a rent increase could not be until July and Council knew the difficulty of trying to pass through exp~nses. He felt owners should be given an option of a bi-monthly basis with a small surcharge added to cover City expenses with property owners to be held responsible if the renters did not pay. Options should be given. He feR additional problems would arise when billing was for water consumption based rates. He had been told that Sweetwater had offered to do a dummy billing for the City with the money haing mailed ~ the City. Councilmember Fox questioned if staff was aware of the Sweetwater offer. Ms. Cole responded that one of the alternatives studied by staff was an option of having the water companies do the billing for the City end that option was more expensive then doing the billing in-house. Staff had not totally looked at the option of billing tenants versus landowner, but felt it could be an administrative nightmare which would result in a higher costs of in-house billing without the benefits of cost saving on the tax roll. Mayor Nader questioned if the option to allow the landlord to have their tenants billed separately off the tax roll would result in an administrative nightmare if the landowner was willing to pay the administrative costs. He questioned whether the Sen Diego County Apartment Association had been polled to see what their feelings were regarding the billing to the tenants with administrative costs b~ing paid by the landlords. He questioned whether there had been discussion regarding a separate bill in the same mailing as the water bills. Ms. Cole stated the water authorities had indicated that they were not interested in that option. Councilmember Rindone requested clarification of Item 3 in the Assessor's letter end whether that assumed that governmental agencies would have to be billed separately. Ms. Cole stated the governmental agencies would be billed in-house along with the commercial customers. · Rod Davis, 233 Fourth Avenue, Chula Vista, CA, representing the Chula Vista Chamber of Commerce, Broadway Association, and Pacific Southwest Association of Realtors, congratulated staff on the outreach program. They recognized the action was not of the City's making but coming from the water authorities, but they felt the current system worked well and should not be changed. He requested a four week delay to give them an opportunity to reach out to the elected officials on the two water boards and convince them that billing should be kept as it was. There concerns were: 1) cash flow to the City; 2) using liens as a method of collection; 3) tax complexity issue for landlords; 4) impound accounts, i.e. it would take two years for the impound account to catch up with the proposed action; 5) because it was on the property tax roll it would be treated as a tax by lenders; end 6) tenant accountability. · Michelle Moreno. 1011 Camino del Rio South, San Diego, CA, representing the Sen Diego County Apartment Association, clarified that Mr. Severson's comments regarding a surcharge was not a position of the Association. They had not been directly notified regarding the issue. She felt the request for a four week delay would be welcomed by their association. · Mark Franklin, 620 "C" Street, Sen Diego, CA, representing the San Diego County Apartment Association, stated under the current proposal there would be in-house billing for businesses yet for the multi-family people that had to obtain a business license they were being treated as residential. In their opinion they needed to receive the economic benefits of retrofitting at the · Minutes October 25, 1994 Page 6 present time. They preferred to be billed directly every other month. He supported the four week delay as recommended by the Chamber. Mayor Neder questioned whether it would be preferable to delay the item for four weeks rather than offering other options or moving the multi-family owners flora the residential to the business category. Mr. Franklin responded that having time to discuss it with all involved parties would be appreciated. The Apartment Association did not agree with the proposed surcharge by Mr. Severson as businesses and mobile home parks were not having to pay it. They preferred the rate be increased frem $1.67 to $1.70 and do all billing in- house or have the water authority do the billing. ® T.A. Petermichel, 1300 Park Drive, Chula Vista, CA, stated she was retired and, therefore, on a limited income. She requested that it be left the way it was and if it had to be changed that a yearly bill be mailed which would give the landowners the option of paying it aH or bi-annually with a $5.00 fee. She felt that would allow those on fixed incomes to budget their money. ® Mike Turner, 9 Palomar Drive, Chula Vista, CA, stated he was opposed to the staff recommendation and wanted to see some type of direct billing. · Sid Morris, Sr., 862 Cedar Avenue, Chula Vista, CA, stated the proposal would cost him between $200- $225/month. He felt the City should keep the status quo. · Carolyn F. J. Butler, 97 Bishop Street, Chula Vista, CA, stated if approved, her sewer bill could be more than her house payment. She felt Council should take action to keep it the way it was currently being billed. Councilmember Horton requested that Mr. Reynolds explain why the billing could not remain the way it was currently being billed. · Dick Reynolds, 505 Garrett Avenue, Chula Vista, CA, General Manager, Sweetwater Authority, responded that the work load for theft billing section was increasing annually as the average bill increased. Economic conditions were such that people were having more difficulty in paying higher bills which led them to the conclusion that they would have to go from bi-monthly billing to monthly billing which would result in a cost of $270,000/year. It would also create other problems such as adding six staff members and staff space. Therefore, they did not want to have to go to monthly billing. When the City raised fees their offices received on average of 100 calls par day related to sewer for a 34 month period. Councilmember Horton questioned whether they could have a message on the automated answering system that if the call was regarding sewer billing that they should contact the City. Mr. Reynolds responded that could probably be done by the end of the year. The difficulty in collecting bills in the customer accounts area had increased each year. They felt without the sewer billing they would be ten or more years away from having to go to a monthly billing. Councilmember Hortun questioned whether a nominal fee increase could be charged which would allow the system to stay the way it currently was. Mr. Reynolds responded that would not solve the pwblem regarding the number of inquiries the staff received and the personal attention it took for the accounts in arrears. There be'me no further public testimony, the public hearing was declared closed. Councilmember Rindone felt the input at the heating had been excellent and had brought forward issues that needed further examination. He would not vote for anything that would place the billing on the tax roll. I 11 Minutes October 25, 1994 Page 7 MS (Rindone/Fox) to diminato the option for consideration of placing the sewer charges on the annual tax assessment. Mayor Nader questioned if there was a requirement that all bills that w~nt on the tax bill be liened if not paid or was it something the City would tell the Assessor to do. Mr. Boogasxd responded that he would have to research it further and report back to Council. Mayor Neder stated he was inclined to vote for the metion on the floor with one reservation, i.e. if the tax bill option was ruled out and if the water districts did not allow the City to continue the present system it would result in a small rate increase in order to cover two separate billings. He felt the consolidated billing system was the best and most efficient and supported the four week delay. If the present system could not be continued he would be inclined to agree that parson could have a lump sum payment on the tax bill or if they preferred separate billing. His vote was not an endorsement of a mandatory rate increase to cover the cost of the bill if the City was not allowed to continue with the current system. Councilmember Rindone felt a sobsequent metion would be to provide a four week window of oppommity to work with the water boards. The importance of the first motion was to send a clear message that Council was not going to, under any scenario, transfer the sewer charges to the tax bills. Therefore, it would be very clear to the water boards that Council would not change their position and, if it resulted in increased rates, it was due to the actions of the water authorities. Councilmember Fox stated he concurred with Councilmember Rindone's approach. He did not feel the burden should be shifted from one agency to another because one agency was inconvenienced by telephone calls or a delinquency problem. Councilmember Moore stated a single purpose utility had more control than a multiple purpose utility. Sewer was about the only utility that could not be shut off. If the City went alone in the billing they could not shut off the service which could result in a larger loss of failure to pay. VOTE ON MOTION: approved unanimously. MSUC (Rindone/Nader) delay further action for at least four weeks to allow an opportunity for community discussion with the two water boards to review the current billing system and avoidance of any change in ORAL COMMUNICATIONS * * * Councilmember Herton left the dins at 8:20 p.m. * * * · Carolyn F. J. Butler, 97 Bishop Street, Chula Vista, CA, requested that Council re-establish the City transportation committee. She expressed her concern regarding the traffic at the trolley station on Palomar. The Human Relations Committee did not have time to deal with transportation issues and she felt if the transportation committee was not re-established it should be combined with the Veterans Commission. · James B. Martin, 1092 Torrey Pines Road, Chula Vista, CA, spoke in opposition to the Daley Rock Quarry. He expressed his concern regarding the increased truck traffic (185 trucks between 6:00 a.m. and 10:00 p.m.) on their road. · Alan Silver, 812 Cardamom Coufi, Chula Vista, CA, spoke in opposition to the Daley Rock Quarry. If the projections were correct it would result in a truck going past their house once every five minutes. He questioned the EIR which stated there would be no environmental impacts. He felt there would be an impact on air quality, noise, traffic volume, and damage to vehicles driving on Minutes October 25, 1994 Page 8 the mad due to rocks from the trucks driving on the road. The permit would allow them 20 years before another public hearing would be required. · Bob Hyberger, 1066 Torrey Pines Road, Chula Vista, CA, was not present when called to the dins. · Ottilie Chomak, 1521 B Apache Drive, Chula Vista, CA, representing Charter Point Homeowners, spoke in opposition to the Daley Rock Quarry. She did not feel the EIR was correct or that the mitigation measures were adequate. Presently the traffic was dense, the noise was loud, and the air quality was worsening. She expressed her concern regarding the access of emergency vehicles to the neighborhoods. · Brenda Maldonado, 862 Blackwood Road, Chula Vista, CA, spoke in opposition to the Daley Rock Quarry. She was concerned regarding the environmental and safety hazards to the area. She requested the City litigate the revised EIR. · Roy Harris, 1509 A Apache Drive, Chula Vista, CA, spoke in opposition to the Daley Rock Quarry. He expressed his concern regarding the independent truck operators. He requested the City litigate the EIR. · Martin Calvo, 974 Paseo Entrada, Chula vista, CA, spoke in opposition to the Daley Rock Quarry. He expressed concern regarding the additional truck traffic on Telegraph Canyon Road, noise pollution generated, and reduction of air quality. He encouraged Council litigate the EIR. · Renee Van Hoe, 524 Telegraph Canyon Road #H, Chula Vista, CA, representing Telegraph Canyon Terrace Apartments, spoke in opposition to the Daley Rock Quarry. She stated there was horrendous traffic currently at the intersection of Telegraph Canyon Road end I-805. They had a problem in keeping their tenancy up due to the noise and soot in the complexes. She expressed her concern for the safety of the children of the area. · Judy Tweed, 1469 Telegraph Canyon Road, Chula Vista, CA, stated she was representing twelve members of a family that had lived in the area for three generations and they were in opposition to the Daley Rock Quarry. Due to traffic they had to build a rock wall and gates in order to keep traffic from charging into the homes. She requested that Council help in any way they could. · Patrick L. Muldoon, 731 Baylot Avenue, Bonita, CA, spoke in opposition to the development impact fee for non-profit organizations. He stated it was his understanding that a condition had been placed upon the new churches, i.e. in order for them to build they had to submit a letter indicating that they would abide by any decision made by Council. He did not feel the churches were individual entities, but an extension of the community. He recommended that Council vote against the DIF for non-profit organizations. Mayor Nader stated Council had continued the item to the 11/15/94 meeting and Mr. Muldoon's comments would be reflected in those minutes. · Frank Robinson, 1963 Clear Brook Drive, Chula Vista, CA, spoke in opposition to the Daley Rock Quarry. He requested that the City use all it's power to stop the reopening of the quarry. · Marsha Spurgess, Jamul, CA, member of the Jamul Action Committea, stated they had also requested that the County continue the item for further study. She requested that the City work with the Board of Supervisors in order to get them hack to the table end look at what was appropriate for all citizens. Councilmember Rindone stated the Council concurred with the concams expressed regarding the Daley Rock Quarry. He urged the citizens in the area to contact their Supervisor and express their concerns. Councilmember Fox requested that Supervisor Bilbray make a motion to reconsider the Board's action. Mayor Nader stated that the courts were the final resort. There had been a previous settlement that stat~l the City was to be given adequate notice of proposed County conditions so the City could adequately represent the interests of their constituency. He felt it was possible to have a rock quarry that had conditions that would protect the City end the citizens, but he did not feel those conditions had been placed on the project. * * * Councilmember Horton returned to the dias at 8:45 p.m. * * * I [I Minutes October 25, 1994 Page 9 BOARD AND COMMISSION RECOMMENDATIONS None submitted. ACTION ITEMS 10.A. RESOLUTION 17694 APPROVING AMENDMENT TO AGREEMENT NUMBER 94-04772V AND APPROVING AGREEMENT NUMBER 94-05798V WITH THE REGENTS OF THE UNIVERSITY OF CALIFORNIA, DAVIS FOR GRANTING FUNDS FOR THE CHULA VISTA TELECENTER TO THE ENERGY CONSERVATION FUND FOR DEVELOPMENT OF A SECOND TELECENTER, AND AMEND, APPROPRIATE AND APPROVE BUDGETS AS IN TABLE ONE; AND AMEND THE FISCAL YEAR 1994/95 BUDGET TO INCLUDE A TEMPORARY EXPERT PROFESSIONAL 1.0 FULL TIME EQUIVALENT - As part of Phase II of the Telecenter Project, staff is bringing forth a package of items for approval. These items include: approving and accepting a budget of $48,000 from the Regents of the University of California, Davis, and establishing the Telecenter Technology Director position; approving partial use of the Otay Ranch office; and approving the lease agreement for the downtown Telecenter site. Staff recommends approval of the resolutions. (Administration) 4/Sth's vote required. B. RESOLUTION 17695 APPROVING PARTIAL USE OF THE OTAY RANCH OFFICE FOR A PERIOD NOT TO EXCEED THREE MONTHS AS A TEMPORARY TELECENTER LOCATION WHILE THE DOWNTOWN TELECENTER IS READY FOR OCCUPANCY, PLANNED FOR DECEMBER 15, 1994 C. RESOLUTION 17696 APPROVING AND AUTHORIZING THE MAYOR TO EXECUTE A ONE YEAR LEASE AGREEMENT WITH TWO ONE-YEAR EXTENSIONS WITH DR. JORGE VALERDI FOR THE DOWNTOWN CHULA VISTA TELECENTER AT 311 "F" STREET Barbara Bamburger, Environmental Resources Manager, gave a brief review of the project. The position for a temporary expert professional was a separate position from the telecenter director which had been previously approved by Council in April. All funds would be coming from grant sources and not the General Fund. Councilmember Rindone questioned the contractual obligation to open the telecenter by 11/1/94. Ms. Bamburger stated the City's contract with Caltrans required the City to open two telecenters. One telecenter was required to be open on 8/1/94 and the other was required to be open on 11/1/94. Due to the fact that the building the City was planning on leasing at 311 "F " Street was not complete the City tried to senegotiate that with Caltrans but due to the fact that they were developing a study with the University of California - Davis they had to have the study completed by the summer of 1995. Therefore, the City's telecenter had to be open and be a part of the study in order to receive funding. A temporary site needed to be opened on 11/1/94. If the telecenter was not opened the funding would be withdrawn. Councilmember Rindone felt adult education districts should be included in the Building Alliances section on page 10-5. He was supportive of what was being proposed, but did not want to create a situation that would have no funding source in the future. He questioned what employment considerations there were for staff hired for the centers if funding was discontinued. Ms. Barnburger responded that beth positions were temporary positions, i.e. one year positions. The positions were advertised as such so it would be dear that it was a temporary situation and subject to additional funding. The position for the telecenter director position and had over 25 qualified candidates. Staff had intended to use the list established for the telenter director for the proposed position. One of the major purposes of the position being created was to look for partnerships that would enable additional funding. RESOLUTIONS 17694, 17695, AND 17696 OI~ERED BY COUNCILMEMBER MOORE, reading of the text was waived. Minutes October 25, 1994 Page 10 ® Rod Davis, 233 Fourth Avenue, Chula Vista, CA, Chair of the Citizens Task Force for the Telecenter, spoke in support of the project. · Carolyn F. J. Butler, 97 Bishop Street, Chula Vista, CA, spoke in support of the project. VOTE ON RESOLUTIONS 17694, 17695, AND 17696: approved unanimously. 11. RESOLUTION 17697 CONCEPTUALLY APPROVING THE DONATION OF LAND FOR THE BUILDING OF A VETERANS HOME FACILITY AT THE HOSPITAL SCHOOL SITE LOCATION PROVIDED THAT THE SITE IS SELECTED FOR DEVELOPMENT BY THE STATE OF CALIFORNIA, AND RECOGNIZING THE NATURE OF THE FACILITY WARRANTS RELIEF FROM CERTAIN DEVELOPMENT FEES - The Govemor's Task Force on a Southern California Veterans Home has identified Chula Vista as a priority site for the development of a 400-bed Veterans Home facility. The report and resolution outlines the City' s proposal which involves the donation of lend end the waiver of certain development fees in order to assure that the proposal will be selected. Staff recommends approval of the resolution. (Director of Commqnity Development) Juan Arroyo, Housing Coordinator, stated the Housing Advisory Committee and the Veterans Advisory Commission supported the project. · Robeft McCauley, 337 E. Naples Street, Chula Vista, CA, represenfmg the Veterans Advisory Commission, spoke in support of the project. · Bill Ayers, 44 E. Mankato Street, Chula Vista, CA, representing the VFW and Chair of the County Veterans Advisory Council, spoke in support of the project. · Dan Kreyling, 9938 Chocolate Summit, El Cajon, CA, representing the United Veterans Council of Sen Diego, spoke in support of the project end supported the Sharp Hospital site. RESOLUTION 17697 OH~'ERED BY MAYOR NADER, reading of the text was waived, passed and approved Mr. Boogaard announced that Councilmember Rindone abstained because of an appearance of impropriety by his participation end not due to financial conflict. 12. REPORT AGREEMENT WITH METRO YMCA FOR MATCHING PLEDGE CONTRIBUTIONS TO AQUATIC FACILITY - The San Diego County YMCA desires a full service YMCA facility in the South Bay. They ere engaging a fund raising drive, and they have asked for a $500,000 contribution from the City which will be matched by an equal amount from the YMCA Director's Fund in addition to the results of other fund raising efforts. They need about $2.9 million for Phase I. The agreement proposes to give the YMCA such financing on specified terms and conditions. Staff recommends approval of the resolution. (Director of Parks and Recreation) Mr. Goss stated he would not normally bring the item before Council due to the number of loose ends regarding the agreement, but the YMCA had a 11/1/94 deadline in taking the next step in seeking grant funds. Staff was seeking some type of understanding of agreement or concept with direction on specific issues. He then outlined the rationale for the contract. He felt there was a need to control overhead. He recommended that it be modified to indicatethatthereas~nab~eness~fthe~verheaddefmiti~nsh~u~dbeapprovedbytheCityManager~s~~ce. Ifthe City Manager had the ability to review the direct and indirect costs including overhead, on an annual basis he felt it would salisfy the need of the public access issue being addressed. It was his understanding that the YMCA was not amenable to "friendly litigation" as discussed in the staff report. They were willing to indemnify against the City regarding the Block Grant funds but were not willing to indemnify the City regarding the PAD funds except to the extent that if there was a breach of contract they would indemnify the City. He then reviewed the proposal if the full $500,000 was not given. ; I[I Minutes October 25, 1994 Page 11 Mr. Boogaard stated he had been advised by Mr. Arroyo that the CDBG requirement was low income which was inconsistunt with information previously receive~:l which stat~ only 50% had to be low/moderate income. It should b~ wonlad "greater than 51% had to be us~ by low, not moderate, i.e. 80 % or lower of the nedjan incong ~ach year in the first five years. ". Councilmember Hotton questioned how the City or YMCA would make the determination of compliance with the 51% role. Mr. Arroyo stated the City would require quar~rly reports from the provider which would indicate the number of people using the facility and actual evidence that the percentage was actually 51% or more. The YMCA had indicated that they would more than meet the requirement because many of their users wonld be seniors and handicapped which were deemed by HUD to be of low income. Councilmember Moore questioned whether the City used HUD funds in their projects and how the City reported compliance with the 51% low income requirement. Jess Valenzuela, Director of Parks & Recreation, stated it was usually designated by area. Mr. Arroyo stated there were three criteria for HUD funds: 1) area benefit, if the area was included in a low income census tract; 2) actual economic situation of the users; and 3) local interpretation, the City would have to prove that 51% of the individuals within that particular area were at or under 80% of the median. Councilmember Fox stated he was concerned with the indemnification. Mr. Goss stated the concern was public access. As long as comparable public access was available, such as access to a City pool, but if the price was too high and people were denied access there could be a lawsuit saying the PAD funds were misapplied. Councilmember Fox questioned whether scholarship programs and transportation from areas throughout the City would satisfy the public access concams. Mr. Goss stated those types of things were described as on-going programs, not something that was guaranteed in the contract, but there was no guarantee. Mr. Boogaanl stated the pricing strocture of the contract did not assure there would be public facility type fees similar to a comparably run pool facility. It limited the Manager's authority to a minimum amount that could be set. He could not sot a fee that did not permit full cost recovery to the YMCA. With the indemnity, if it was attacked on the grounds that it was an improper use of PAD funds, for the failure to operate in a public pool like manner the YMCA would accept the risk. If the City did not have that indemnity, and was sued, the City's General Fund would be at risk. Mr. Goss stated he felt the market would keep the fee from going to $3 - $4. There was a review of the rates, programs, and hours of operation by the City Manager. He also recommended a review of direct and indirect costs on an annual basis by the City Manager to ensure that they were fair and reasonable. The YMCA was willing to include a breach of contract clause. Those in combination made him feel more comfortable with what was being proposed. Councilmember Rindone stated it was a complex issue and felt it was important that the operation and maintenance would not be a City burden. The funding was a one time cost and if a resolution was not found the project would not be built. He felt the concerns expressed were valid, but felt a resolution could be reached by drawing from the City's reserves over a period of five years rather than PAD fees. That would eliminate the concerns regarding the utilization of PAD fees and would provide those services to the community. He questioned what the down side would be from utilizing the reserves. Minutes October .25, 1994 Page 12 Mr. Goss responded that it was a policy decision, but the reserves had been shrinking. The State seemed way out of balance which could only mean that there could be an effort by the State to raid local governments after the election. As a policy matter, when he talked to staff, concern was expressed that money was not being put into salary improvements, staff'mg, etc. It was his response that the City used restricted funds for capital, it was not money that would be utilized for operations. The proposed action would be a change from that policy perspective. Mayor Nader felt the intent was laudable but felt the City Manager's concerns were legitimate. The reserve, unlike the PAD fee, was not a fund that was continually be added to. He felt there was a very small risk of litigation but such a lawsuit was unlikely to be successful. He suggested the City not worry about indemnification against such a lawsuit, accept that risk for the City, pay the funds from the PAD fees, and if there was still a concern regarding litigation based on the use of PAD fees, Council could rewrite some of the regulations to cover the concerns and strengthen the ordinance and then if the City was sued the City could reimburse itself out of PAD fees collected in the future under the new improved ordinance rather than the General Fund reserves. Councilmember Horton agreed with Mayor Nader. Many of the children using the facility would be bused in from throughout the City including the western parts. She felt protected and would move forward without the indemnification. If Council felt there should be indemnification, $250,000 could be set aside from the General Fund. She did not want to use reserves when she felt it would be an appropriate use for PAD fees. Councilmember Rindone questioned whether 100% funding from CDBG grants would be better than using PAD funds. Mr. Goss responded there was a limited amount of money in the block grants. At the time the Council made the decision to use the $250,000 from grant funds and $250,000 from PAD funds Council had all the demands from social services agencies and capital needs before them. He recommended that before making a decision, Council look at those demands. Mayor Nader felt the issue before Council was to resolve the policy issues around the proposed contract with the YMCA for construction and operation of a swimming pool. Council was getting into discussion of which pool of funds the money should come from. He was uncertain that issue needed to be addressed in the contract if everyone was agreed upon the fact that no matter what funding was used, the City would not demand an indemnification for a theoretical lawsuit. Mr. Boogaard informed Council that a substantial advantage had been negotiated in the agreement that the YMCA would accept the indemnification on the improper use of CDBG funds and there was no reason to lose that negotiating tool. Mayor Nader stated he was referring to the indemnification regarding the utilization of PAD fees. Councilmember Moore stated if it would say *with the exception of block grants funds" he would agree. Mr. Boogsard clarified that if the City could get the entire amount of money from CDBG grant funds, and with Councilmember Moore's clarification, that would carry with it the entire indemnification which would be a better legal position. · Russ Hall, 235 "K" Street, Chula Vista, CA, Chair, Parks & Recreation Commission, stated when the 7-0 vote was taken the Commission they did not feel they had adequate information. Since that time the YMCA had returned to the Commission with substantial information. The Commission had not been asked to make a formal recommendation on the project. There were several issues they felt strongly about: 1) utilization of PAD fees, and he concurred with the utilizatinn of alternative fees and suggested that a trigger mechanism be devised so if the economy picked up the PAD fees could be utilized, if not, General Fund monies could be utilized. With the utilization of PAD fees several perk and recreation facility projects on the books would be in jeopardy. Another issue was Minutes October 2:5, 1994 Page 13 public access. They supported the overall project but there were compelling and complex issues that needed to be addressed. · Rod Davis, 233 Fourth Avenue, Chula Vista, CA, representing the Chamber of Commerce, supported the project. He hoped there would be an agreement by Council to provide support and work out the details later so the YMCA could get their money. ® Pam Smith, 380 Third Avenue, Chula Vista, CA, Chair, Southbay Family YMCA, spoke in support of the project. The YMCA was a reputable organization that was well run and well managed and had a good financial history. They felt they had tried to meet the issues raised by the City and had done it in good faith. Public access was also very important to them end noted the YMCA did not turn anyone away for lack of resources. All programs would be accessible to members and non-members. She did not feel that an agreement could be written for every issue that might arise, but there needed to be trust and faith that the YMCA would work with the City. They felt it was time to move forward. · John Willett, 97 Montebelle Street, Chula Vista, CA, agreed with the utilization of General Fund revenues as parks end recreational facilities were needed in the western part of the City. He urged Council to support the staff recommendation. · Greg Cox, 647 Windsor Circle, Chula Vista, CA, spoke in support of the project. He stated the City Manager would have veto authority on whatever rates would be charged. He referred to the agreement handed out at the meeting, page 6, Item C, one technical clatifieation would be "... it is envisioned that the CDBG funds would be utilized for the teaching pool" as opposed to the "aquatic center" because the need to track the users and eligibility and income requirements. It would be easier for the YMCA to focus on the teaching pool because it would be heavily used by the seniors, disabled, and students and children. On the same page, two lines down, "... and for each year of the first five years after the first City's contribution" which was in reference to the CDBG requirement that for the first five years the facility would have to be available 51% of the time for low income individuals. The only other changes were in reference to page 10, in order to address the concerns of the City Manager, they suggested under Paragraph B, five lines up from the bottom, "... design any program and/or fees that would result in a net oporeting loss for the aquatic center when administrative overhead, maintenance, operating and other direct and indirect costs of operating the aquatic center are charged in accordance with generally acceptable accounting principles consistently applied", they suggested the addition of verbiage "subject to review by the City Manager". They also suggested that the footnote at the bottom of page 10 be a part of the agreement, i.e. Paragraph D which would follow on the next page, under heading number 11. The last change suggested was on page 11, instead of the fifteen years it should be a twenty year commitment to operate the facility in a similar manner, subject to the City Manager's review of the fees, programs, and availability of times. With those changes they wan{~t to see the agreement acted upon. The YMCA, City staff, and HUD representatives needed to meet regarding the usage of CDBG block grant funds. They did have concerns regarding Davis-Bacon, prevailing wage, minority and women opportunity constraints and requirements. Councilmember Moore stated the CDBG funds were already indemnified in the agreement and any other indemnification would probably not be required by Council. He felt the fees should not just be reviewed by the City Manager, but that there also be approval subject to appeal to the Council or a 10% CAP differential between City fees maximum. Mr. Goss stated on page 10 of the agreement, Paragraph B, provided for approval by the City Manager with an appeal process to Council. That could be modified if their expenses were too high. Mr. Boogaard stated his office would suppert that. Mr. Cox for that would pre~nt a problem. It was a facility that was different from any other facility Within the City. He felt there was strong language in the agreement, i.e. the City Manager would have to give approval. He referred to the recommendation previously made on Page 10 which referred to the reasonableness issue. Minutes October 25, 1994 Page 14 Mr. Goss stated there had to be written prior approval for the fees, programs, and hours. On the fees, if the City Manager saw excessive expanses, the City Manager had the opportunity to review the reasonableness of the fee. There war also a market factor that war not expressed in the agreement. If the City war charging 75 cents and they were charging $1.00 he did not see a problem with that, but it war not within a 10% differential. He felt there still needed to be fine tuning on the language, but he felt all the concepts were included in the agreement. Councilmember Moore expressed concern on the amount of time it would take to fine tune the document. He felt direction should be given to the City Manager with the City Attorney only looking at it from the legal standpoint, not a managerial standpoint. Councilmember Rindone stated he was greatly opposed to the use of the PAD fees and felt the concerns by the City Manager for the reserves were also legitimate. An indemnification had been reached for the CDBG funds and if those funds were used 100% the City would still have the option of using the reserves in the future or PAD fees at that time. That would avoid a multiple funding agreement and result in full indemnification. The project needed to move forward, but he did not want to confine it by utilizing the PAD fees. MS CNader/Fox) to approve the agreement before Council with direction to staff to make the following changes: 1) delete reference to PAD fees as a specific funding source, not to preclude use of the PAD fees but not make it a part of the agreement; 2) change to "teaching pool" on page 6; 3) add the phrase "subject to review by the City Manager" after the phrase ".... principles consisten~y applied.." on page 10, fourth line from the bottom, paragraph B; 4) change Footnote 5 to Paragraph D on page 11 after Paragraph C; and 5) change from 15 years to 20 years on page 11. Councilmember Rindone stated he would support the motion ar it showed the Council war committed to the project anditwouldgivethemadditionaltimetolookatalloptionsforfundingtheadditionalS0%. He questioned whether it was understood that the City Manager not only had review privileges but full approval. Mayor Nader stated that war correct, on page 10 in Paragraph B, it stated there had to be prior written approval of fees, hours of accessibility, programs by the City Manager. What war subject to review by the City Manager war the method by which the YMCA determined their oparating costs. Mr. Goss questioned whether it was the intent that the documentation, methodology, and result would be evaluated in terms of fairness and reasonableness. Mayor Nader stated it would be evaluated in accordance with generally acceptable accounting principles eonsisten~y applied. Councilmember Fox questioned if the YMCA had any dispute with the intent of the motion or proposed agreement. · Allen Perry, General Counsel for the YMCA, felt the review process by the City Manager should be amplified in terms of him reviewing and approving as being fair and reasonable. AMENDMENT TO MOTION: (agreed to by the Maker and Second of the Motion) amend contract to read: "when fair and reasonable administrative overhead ....... subject to review and approval by the City Mr. Perry stated there was a technical matter that was not envered by the resolution, i.e. page 6, Paragraph C, sixth line, "years4". The author of the footnote war stating that the five years start~ to run when the first contribution was made and with evety additional contribution it would go another five years. The schedule of cnntributions went to 1999. That would mean that the enmraltment regarding the use of the facility could go until 2004 which war not the YMCA's intention. They felt the five year commitment should be for the first five years use of the facility. He suggested that on the seventh line which started '...five years after the City's contribution" add "five years after the City's first contribution". Minutes October 25, 1994 Page 15 Mayor Nader questioned whether there was a requirement under the CDBG program that went beyond the year that the contribution was made. Mr. Boogaard stated there was an obligation to use the facility if it was not in the proper area, i.e. 51% of the users for each year for five years after the contribution was made. It did not make any different what was put into the agreement because any legal requirement would be read into the agreement anyway. Mayor Nader questioned whether that was a real problem for the YMCA. Mr. Boogaard stated he understood the direction the Council wanted to go and felt he could return with an agreement that the YMCA could agree Mr. Perry stated in order to meet their other grant purposes he preferred to proceed as Mr. Boogaard suggested. The YMCA had assumed that the 51 % usage applied for a five year period and they were willing to go to the trouble and expense to make sure that they complied with that, but to do that for nine years was a different story. Mayor Nader suggested the language be replaced with "compliance with HUD regulations" with Mr. Perry and Mr. Boogasrd working out the specifics. Mr. Perry stated that was agreeable. AMENDMENT TO MOTION: (agreed to by the Maker and Second of the Motion) to replace the language in Footnote 4 with "compliance with HUD regulations". Councilmember Moore stated he had a problem in tapping the reserves as it was a major source of income through the interest. He would consider borrowing from the reserves, but not taking from the reserves. AMENDMENT TO MOTION: (Moore, agreed to by the Maker and Second of the Motion) when the city Manager returned with various funding methods to ensure the other 50% of the grant that if he recommended the use of reserves he would also make recommendations on how to reimburse those reserves. VOTE ON MOTION, AS AMENDED: approved unanimously. **** MS (Nader/Moore) to continue the meeting past 10:30 p.m. to consider ltems 13, 5a, 5b, and Closed Session with the balance heine continued to the meeting of 11/1/94. **** 13. REPORT TROLLEY STATION DONATION CENTERS - MTDB is proposing that Goodwill Industries be allowed to locate an attended donation container at the "H" Street and Palomar Trolley Stations for a period of one year. Staff will process the request through the Zoning Administration design review procedure and work with MTDB staff to find a long-term design solution. Staff recommends Council accept the report. (Director of planning) Councilmember Moore stated the trolley station was aesthetically pleasing and more money went into it than the regular MTDB trolley stations. He hoped the container would also be aesthetically pleasing. Councilmember Rindone stated it was a trial program and if at the end of the year it was felt to be successful some type of kiosk would be designed. He felt that it would provide additional security at the trolley station. MSC (NaderfRindone) to approve the staff recommendation. Approved 4-0-1 with Horton absent. Minutes October 25, 1994 Page 16 14. REPORT UPDATE ON SOLID WASTE DISPOSAL ISSUES - An oral report will be given by staff. Continued to the 1111194 meeting. 15. REPORT UPDATE ON REGIONAL SEWER ISSUES - An oral report will be given by staff. Continued to the 11/1/94 meeting. ITEMS PULLED FROM TIlE CONSENT CALENDAR Item pulled: 5b. The minutes will reflect the published agenda order. OTHER BUSINESS 16. CITY MANAGER'S REPORTfS) a. Scheduling of meetings. No report given. 17. MAYOR'S REPORT(S) a. Amicus letter to U.S. Supreme Court on right of State to limit welfare benefits of new residents -direction to City Attorney. Continued to the 11/1/94 meeting. Mayor Neder stated a newspaper article was not included in the packet end requested that it be included for next ~'~ 18. COUNCIL COMMENTS Councilmember Horton a. Authorization to begin advertising to fill City Council seat to be vacated by Mayor-Elect HorWn. Continued to the 11/1/94 meeting. CLOSED SESSION Council met in Closed Session at 11:08 p.m. and reconvenad at 11:43 p.m. Mr. Goss informed Council that he did not need to meet with Council regarding labor negotiations. 19. CONFERENCE WITH LEGAL COUNSEL REGARDING: 1. Existing litigation pursuant to Government Code Section 54956.9 · City of Chula Vista vs. the County of San Diego and Aptec. 2. Anticipated litigation pursuant to Government Code Section 54956.9 · Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: 1. · Settlement of City/Agency claim against Shinohara Insurance Company for landscaping contract. · City of Chula Vista vs. the County of Sen Diego (Daley Rock Quarry) regarding approval of a major use permit. · City of Chula Vista vs. Solid Waste Management JPA (differential rate structure and transfer station legal issues). · Metro Sewer Adjustment Billing. Minutes October 2.5, 1994 Page 17 PUBLIC EMPLOYEE PERFORMANCE EVALUATION - Pursuant to Govermnent 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, IAFF, Executive Management, Mid-Management, and Unrepresented. Employee organization: Chula Vista Employees Association (CVEA), Western Council of Engineers (WCE), and International Association of Fire Fighters (IAFF). Unrepresented employee: Executive Management, Mid-Managengnt, and Urnpresented. 20. REPORT OF ACTIONS TAKEN IN CLOSED SESSION Mayor Nader reported that Council took two reportable actions in Closed Session. To clarify previous action, Council on a 3-1, had conceptually approved $12,000 as a proportionate share for SAD contingent upon other agencies coming through with a proportionate share and to the City's knowledge that had not happened and the money was not being spent. The purpose was to provide a forum for potential resolution of issues that could be subject to litigation. The other action taken was to authorize the City Attorney to not exceed $60,000 to file litigation against the County of San Diego for the environmental approvals of the Daley Rock Quarry. ADJOURNMENT AT 11:45 P.M. to the Regular City Council Meeting on November 1, 1994 at 4:00 p.m. in the City Council Chambers. Respectfully submitted, BEVERLY A. AUTHELET, CMC, City Clerk \ '~' ! (~"~ "\ ~' c~ Vicki C. Soderquist, Deput)~_j~ Clerk