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HomeMy WebLinkAbout2008/10/07 Item 1 DRAFT MINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA July 23, 2008 6:00 P.M. A Special Meeting of the City Council of the City ofChula Vista was called to order at 8:02 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers: Castaneda, McCann, Ramirez, Rindone, and Mayor Cox ABSENT: Councilmembers: None ALSO PRESENT: City Manager Garcia, Interim City Attorney Miesfeld, Interim City Clerk Norris, and Deputy City Clerk Bennett PUBLIC COMMENTS Richard Preuss, representing Chula Vista Employees Association, spoke in support of the proposed Utility Users' Tax being placed on the ballot, and he encouraged the Council to approve adoption of the proposed resolutions. ACTION ITEM 1. CONSIDERATION OF PLACING A MEASURE RELATING TO THE CITY'S TELECOMMUNICATIONS UTILITY USERS' TAX ON THE BALLOT FOR THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 4, 2008 Chula Vista's Utility Users' Tax (UUT) was adopted in 1970 as a means to help fund public services and capital improvement projects through the City's General Fund. The City receives UUT based on the usage of natural gas, electricity and telecommunications. In fiscal year 2006-07, the total UUT received was approximately $7.0 million, which represents 4.3% of General Fund revenues. The current rates charged are .00919 per therm, .0025 per kilowatt, and 5% on telephone. There are over 150 cities in California with a Utility Users Tax. City staff is recommending that the UUT on telecommunications be updated. The resolutions presented for the Council's consideration would (i) approve an ordinance to be submitted to the voters for this purpose; and (ii) appropriate the funds necessary to cover the related costs. (Finance Director) Director of Conservation and Environmental Services Meacham addressed the issues that were raised regarding this measure during the Council meeting of July 15, 2008. He then explained the proposed changes made to the measure since that time, including revised ballot language and an amendment to the ordinance that would require an annual review of the Utility Users' Tax. J A -I DRAFT ACTION ITEM (Continued) David Krogh, Chula Vista resident, spoke in support of the revised proposal. He stated that the revised ballot language was an improvement, and he acknowledged that the 75-word limit presented a challenge. Deputy City Attorney Maland indicated that two non-substantive corrections to the ordinance were provided to the Council on the dais, adding 3.42.230 - Annual Review, to page I (index); and replacing the words, "Article XIII" with "Title 3" under Section 3 on page 18 of the ordinance. Councilmember Castaneda suggested inclusion oflanguage in the proposed ordinance that would require revenue neutrality. He also stated that the information distributed should clearly state the impacts of the ordinance. Deputy Mayor Rindone suggested that the second sentence under section 3.42.230(a) be changed to read, "The first review shall occur no later than June 30, 20 10;' and "each annual review shall occur no later than June 30 of each subsequent year." City Manager Garcia distributed a handout to the Council that provided statistics from other cities that had adopted Utility Users' Tax ordinances. Further discussion ensued between Councilmembers regarding the potential impacts on safety services to the City, should the proposed measure fail. Mayor Cox suggested adding the language, "with the intent that implementation be revenue neutral" following the word, "chapter" in first sentence of section 3.42.230 of the proposed ordinance. Discussion ensued regarding the intent ofrevenue neutrality. Mayor Cox suggested adding language that would indicate that the intent, proportionate with population and service growth, be revenue neutral. City Manager Garcia suggested adoption of a Council Policy that would govern the City Council's actions as it conducts the annual review to ensure the Council's intent of maintaining revenue neutrality. ACTION: Mayor Cox moved to adopt the resolutions, headings read, texts waived. Councilmember Ramirez seconded the motion. Councilmember Castaneda requested an amendment to consider Resolutions A and B separately. Mayor Cox agreed to amend the motion. ACTION: Mayor Cox moved to adopt Resolution A, Councilmember Ramirez seconded the motion. Councilmember McCann voting no. heading read, text waived. The motion failed 4-1, with Page 2 - Council M inules July 23, 2008 lIJ.- 2 DRAFT ACTION ITEM (Continued) Mayor Cox noted that as a result of the failure of Item lA, it would be unnecessary to consider Item lB. ACTION: Mayor Cox moved for reconsideration of the item by the Council. Councilmember Ramirez seconded the motion, and it carried 4-1, with Councilmember McCann voting no. Mayor Cox deferred to Interim City Attorney Miesfeld to provide an explanation on what opportunity there would be for the Council to move forward with a request for a 2/3rds vote of the people, which she believed did not require a unanimous vote of the Council. Deputy City Attorney Maland responded that the proposed ballot measure could be placed on the ballot as a Special Tax, as opposed to a General Tax, which would require approval by the voters of 2/3rds of the electorate, and would not require the unanimous vote by the Council, since the emergency finding requirements of Proposition 218 did not apply to a Special Tax. Furthermore, revenues received from a Special Tax must be earmarked for a specific purpose, and she stated that staff had recommended the funds be earmarked for public safety purposes. Interim City Attorney Miesfeld confirmed proper noticing for consideration of a Special Tax. ACTION: Mayor Cox moved to adopt Resolution lA, as amended to include the language for a Special Tax. Councilmember Castaneda seconded the motion. Discussion ensued between staff and the Council regarding the proposal to consider placing the ordinance on the ballot as a Special Tax. In response to concerns regarding revenue neutrality, Mayor Cox requested that the language she suggested earlier regarding revenue neutrality, proportionate to population and service growth, be applied to the ordinance for the Special Tax. ACTION: Mayor Cox moved to approve Resolution lA, as amended. Councilmember Ramirez seconded the motion. Councilmember McCann expressed concern about the public noticing of the proposed amendments and insufficient time for Council review. Deputy Mayor Rindone expressed concern about the noticing requirements for a Special Tax, and he requested that the item be trailed to a Special Meeting of the City Council. ACTION: Deputy Mayor Rindone offered a substitute motion to continue Item I to a Special Council Meeting on July 29, 2008 at 6:00 p.m. to consider the placement of a Special Tax on the ballot. Councilmember Castaneda seconded the motion and it carried 5-0. Mayor Cox requested for the next Meeting, that Item IB be divided into two components, one to indicate the cost of $35,000 to add a measure to the ballot; and to add Item I C, to indicate the cost of $70,000 to provide an informational item to the public. Page 3 - Council Minutes July 23, 2008 /A - .-~; DRAFT ACTION ITEM (Continued) A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF A MEASURE RELA TING TO THE CITY'S TELECOMMUNICATIONS USERS' TAX AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 4, 2008; DECLARING THE EXISTENCE OF AN EMERGENCY NECESSITATING SUCH ACTION; AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURE (UNANIMOUS VOTE REQUIRED) B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $105,000 FROM THE AVAILABLE BALANCE OF THE GENERAL FUND TO THE CITY CLERK'S AND NON-DEPARTMENTAL BUDGET TO COVER ANTICIPATED COSTS AND EXPENSES RELATED TO ELECTION COSTS, AND PRINTING AND MAILING COSTS (4/5THS VOTE REQUIRED) ADJOURNMENT At 9:45 p.m., Mayor Cox adjourned the meeting to a Special Meeting of July 29, 2008 at 6:00 p.m.. in the Council Chambers, and thence to the Regular Meeting of August 5, 2008 at 4:00 p.m. in the Council Chambers. ~ r' / Lorraine Bennett, CMC, Deputy City Clerk Page 4 - Council Minutes ! /1 l' / 11 . July 23, 2008 DRAFT MINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA July 29, 2008 6:00 P.M. A Special meeting of the City Council of the City ofChula Vista was called to order at 6:04 p.m. in the Council Chambers, located in City HalL 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers Castaneda, McCann, Ramirez, Rindone, and Mayor Cox ABSENT: None ALSO PRESENT: City Manager Garcia, Interim City Attorney Miesfeld, Interim City Clerk Norris, and Deputy City Clerk Bennett PUBLIC COMMENTS There were none. ACTION ITEM 1. CONSIDERATION OF PLACING A MEASURE RELATING TO THE CITY'S TELECOMMUNICATIONS UTILITY USERS' TAX ON THE BALLOT FOR THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 4, 2008 Based on the existing and imminent threats to the telecommunications portion of the City's Utility Users' Tax (UUT) ordinance, staff recommended Council approve submittal of a new ordinance to the voters at the November 2008 election as a general tax. If the Council does not approve it as a general tax measure, staff recommends that it be placed on the ballot as a special tax, designated for the following purposes: public safety, parks and libraries. The resolutions presented for the Council's consideration would (i) approve an ordinance to be submitted to the voters for this purpose; and (ii) appropriate the funds necessary to cover the related costs. (Finance Director) Director of Conservation and Environmental Services Meacham spoke about staffs attempts to address the Utility Users' Tax issue over the past decade, and the City's resulting non- conformance with current standards. He then presented the proposed Utility Users' Tax Measure. Discussion ensued between the Council and staff regarding fiscal consequences for the City, should the proposed items faiL Steve Miller, representing the Chula Vista Firefighters, spoke in support of allowing the voters to decide on the measure. Page 1 - Council Minutes - Special UUT July 29, 2008 / B, / DRAFT ACTION ITEM (Continued) David Krogh, Chula Vista resident, spoke in support of placing the measure on the ballot as a general tax, requiring a majority vote of the people rather than a two-thirds vote. Larry Breitfelder, Chula Vista resident, representing the Chula Vista Taxpayers Association, stated that continued disintegration of the existing ordinance would cost the public in terms of diminished service. He stated that the proposed ballot language remained deceptive, but understood the importance of the measure. Mayor Cox urged the Council to take unanimous action to place the general tax measure on the ballot in order to secure existing funding. Councilmember Castaneda suggested that staff work with corporations and disseminate information to the community about those corporations that were currently paying the tax and those that were not. He suggested that this item be referred back to staff for a proposal on how to facilitate community trust. ACTION: Councilmember Ramirez moved to adopt the following Resolution AI, heading read, text waived: Discussion continued among the Councilmembers, with each providing their perspective on this measure. Councilmember Castaneda suggested continuing the item, and spoke of the need for the Council to ensure clarity with the proposed ballot language and ordinance language. AI. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF A MEASURE RELATING TO THE CITY'S TELECOMMUNICATIONS USERS' TAX AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 4, 2008; DECLARING THE EXISTENCE OF AN EMERGENCY NECESSITATING SUCH ACTION; AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURE (UNANIMOUS VOTE REQUIRED) Deputy Mayor Rindone seconded the motion. The motion failed 3-2, with Councilmembers Castaneda and McCann opposed. ACTION: Mayor Cox moved to adopt the following Resolution A2, heading read, text waived: A.2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY OF A MEASURE RELATING TO THE CITY'S SAFETY AND COMMUNITY ENHANCEMENT TELECOMMUNICATIONS USERS' TAX AT THE SPECIAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 4, 2008; AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS OF THE MEASURE (3/5THS VOTES REQUIRED) Page 2 - Council Minutes ~ Special- UUT July 29, 2008 18-2 DRAFT ACTION ITEM (Continued) Deputy Mayor Rindone seconded the motion. The motion failed 2-3, with Councilmembers Castaneda, McCann and Ramirez opposed. The following resolutions were not considered: B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $35,000 FROM THE GENERAL FUND TO COVER THE ANTICIPATED COSTS AND EXPENSES RELATED TO PLACING THE TELECOMMUNICATIONS USERS' TAX ORDINANCE ON THE NOVEMBER 2008 BALLOT (4/5THS VOTES REQUIRED) C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $70,000 FROM THE GENERAL FUND TO COVER ANTICIPATED COSTS AND EXPENSES RELATED TO PRINTING AND MAILING INFORMATION RELATED TO THE TELECOMMUNICATIONS USERS' TAX BALLOT MEASURE (4/5THS VOTE REQUIRED) ADJOURNMENT At 7:37 p.m., Mayor Cox adjourned the meeting to the next Regular Meeting of August 5, 2008 at 4:00 p.m. in the Council Chambers. / ?>. .--/ Lorraine Bennett, CMC, Deputy City Clerk Page 3 - Council Minutes - Special - UUT I /A_/ t - ",,/ --" July 29, 2008