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Home My WebLink Aboutcc min 2008/11/17MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA November 17, 2008 6:30 P.M. An Adjourned Regulaz meeting of the City Council of the City of Chula Vista was called to order at 6:34 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers Castaneda (arrived at 6:38 p.m.), McCann, Ramirez, Rindone, and Mayor Cox ABSENT: None ALSO PRESENT: Interim City Manager Tulloch, Interim City Attorney Miesfeld, Deputy City Clerk Bennett, and Records Manager Phazis PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Mayor Cox announced the decision by Gaylord Entertainment to discontinue its plans to develop a resort and convention center project on the Chula Vista bayfront. INTRODUCTION BY INTERIM CITY MANAGER TULLOCH OF GARY HALBERT, PLANNING AND BUILDING DIRECTOR Interim City Manager Tulloch recognized and thanked staffinember Brad Remp for serving as Interim Planning and Building Director. He then introduced Planning and Building Director Gary Halbert. PUBLIC COMMENTS Lorena Gonzalez, San Diego resident, Secretazy/Treasurer to the San Diego-Imperial Counties Labor Council, spoke about the news regazding Gaylord Entertainment's decision to discontinue its plans to develop a resort and convention center on the bayfront. She stated that should Gaylord wish to re-entertain its proposal any time in the future, organized labor would be happy to build on the progress made to turn the bayfront in to a winning solution for workers in the community. She thanked the City for its leadership and commitment. BUDGET WORKSHOP Interim City Manager Tulloch talked about the impacts of the economy on the City's budget, and the underlying assumptions regazding the continuing decline in revenues. He stated that another budget workshop was scheduled on December 4, 2008, to be followed by Council approval of the Budget Reduction Plan on January 6, 2009. Page 1 -Council Minutes November 17, 2008 BUDGET WORKSHOP (Continued) 1. PRESENTATION BY MARNEY COX, CHIEF ECONOMIST OF SANDAG ON REGIONAL ECONOMIC OUTLOOK Marney Cox, Chief Economist, representing SANDAG, presented the 2008/2009 economic outlook for San Diego that included slow job growth, increased unemployment rate, lower home prices, reverse wealth effect, and significant risk of a deep national recession. Discussion ensued between the Council and Mr. Cox about the duration of the recession; issues regarding the reduction in credit limits and increased interest rates on personal credit cazds by credit cazds companies; impacts of various indexes on municipal government, in particular, sales tax and property tax revenues. 2. PRESENTATION BY PETER DENNEHY, SENIOR VICE PRESIDENT OF THE SULLIVAN GROUP ON REGIONAL HOUSING MARKET Peter Dennehy, representing the Sullivan Group, gave a presentation on the National Housing Mazket. Discussion ensued between the Councilmembers and Mr. Dennehy about those individuals affected by the reflection of short sales and foreclosures on their credit reports and their ability to re-enter the housing mazket; and the effects of adjustable mortgage rates and their impacts on foreclosures. 3. PRESENTATION BY REPRESENTATIVE FROM THE SAN DIEGO COUNTY ASSESSORS OFFICE ON CHULA VISTA PROPERTY TAX PROJECTIONS Manuel Serrano, Chief of Valuations, and Jeff Olson, Chief of Assessment Services, representing the San Diego County Assessor's Office, gave an overview of City of Chula Vista Property Tax Assessments and the 2009/2010 Assessed Values Projections. Mayor Cox recognized Greg Hulsizer, who stated that in celebration of South Bay Expressway's ls` birthday on November 19, 2008, South Bay Expressway would be donating $1.00 from every trip to Endow Chula Vista. Deputy Mayor Rindone spoke regazding the shortfalls in funding levels, and stated that it was his understanding that any due payments of bonds had first priority for City revenues. Finance Director Kachadoorian responded that the debt service payments were subject to annual appropriation. She added that staff would look into the matter in more detail and provide a response to the Council. At 8:40 p.m., Mayor Cox announced a recess of the Council meeting. The meeting reconvened at 8:59 p.m., with all members present. 4. QUARTERLY FISCAL STATUS REPORT FOR THE FIRST QUARTER OF FISCAL YEAR 2008/2009 Finance Director Kachadoorian provided information on the General Fund revenues by category. She then provided the projected deficit for the current fiscal yeaz, and spoke of the need for measures to address the deficit. Page 2 -Council Minutes November 17, 2008 BUDGET WORKSHOP (Continued) Director of Budget and Analysis Van Eenoo stated that staff had predicted a two percent reduction in property tax values. However, the updated information presented by the Assessor's Office indicated property tax revenues were expected to decrease by four percent. He then gave an overview of the Fiscal Yeaz 2009/2010 budget that included the projected deficit. He provided details of expenses included in the budget as well as workload measures and staffing history from Fiscal Yeaz 2003/2004 through Fiscal Yeaz 2008/2009. ACTION: Councilmember Castaneda moved to accept the report as submitted. Councilmember Ramirez seconded the motion and it carried 5-0. 5. FISCAL YEAR 2009/2010 BUDGET OVERVIEW AND FIVE-YEAR PROJECTIONS • Fiscal Yeaz 2009/2010 General Fund Budget Overview Finance Director Kachadoorian presented the base assumptions regarding major revenues and expenditures, CaIPERS rates of return and status. • Five-Yeaz Revenue and Expenditure Projections Finance Director Kachadoorian then presented the five-yeaz outlook for Fiscal Yeaz 2009/2010 through 2013/2014 and future challenges that included state take-aways • Fiscal Yeaz 2009/2010 Development Services Fund Budget Overview Planning and Building Director Halbert talked about the Development Services slowdown in activity, residential permit issues, fiscal yeaz 2008/2009 mid-yeaz reductions, and a fee study. • Fiscal Yeaz 2009/2010 Redevelopment Agency Fund Budget Overview Assistant Director of Redevelopment and Housing Crockett presented mid-yeaz budget issues, ERAF shift of $859,852 payment by the Redevelopment Agency by May 1, 2009, and proposed Fiscal Yeaz 2009 cuts. Director of Budget and Analysis Van Eenoo presented budget balancing strategy and options that included re-negotiation of employee MOU"s, continued hiring freeze, eazly retirement incentive, further program and staffing reductions, tax and fee increases, employee contributions towazds retirement plans, historical salary savings, eazly retirement incentive, program and staff reductions, revenue enhancements, general purpose and special purpose taxes, and Transient Occupancy Tax. Interim City Manager Tulloch addressed the next steps for the budget process and schedule, and stated that the December 4a' workshop would be based upon a $20 million deficit. Councilmember McCann requested that staff include with the December 4th budget workshop, the City's debt structure when looking at past bonds, such as the pension obligation bonds that have cost the City $2.6 million a year. He also requested a breakdown of the City's debt bonds, the amounts being paid, potential ways of restructuring the bonds, and the expiration dates of the bonds. Deputy Mayor Rindone requested that excess property be included as options for revenue enhancements. Page 3 -Council Minutes November 17, 2008 BUDGET WORKSHOP (Continued) 6. CONSIDERATION OF ESTABLISHMENT OF CITY'S MANAGEMENT TEAM FOR THE PURPOSE OF MEETING AND CONFERRING WITH THE CITY'S EMPLOYEE ORGANIZATIONS In accordance with the Meyers-Milias-Brown Act as contained in Government Code Sections 3500-3511, Council must designate representatives for labor negotiations. Adoption of the resolution complies with this requirement. (Human Resources Director) ACTION: Councilmember Castaneda moved to adopt the following Resolution No. 2008- 258, heading read, text waived: RESOLUTION NO. 2008-258, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPOINTING THE CITY'S MANAGEMENT TEAM FOR THE PURPOSE OF MEETING AND CONFERRING WITH THE CITY'S EMPLOYEE ORGANIZATIONS Deputy Mayor Rindone seconded the motion and it carried 5-0. Mayor Cox spoke with respect to the Council Agenda for the Meeting of November 18, 2008, and announced that the agenda items would be addressed in the following order of business: 1. Public Comments 2. Consent Calendar 3. Public Hearings 4. Closed Session The Council Convened in Closed Session at 10:18 p.m. CLOSED SESSION 7. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE 54957.6 • Agency designated representatives: Scott Tulloch, Mazcia Raskin, Bart Miesfeld, Rod Betts, Maria Kachadoorian, Edwazd Van Eenoo, Leah Browder • Employee organizations: CVEA, IAFF, POA, WCE, and Unrepresented Groups No reportable action was taken on this item. ADJOURNMENT At 11:10 p.m., Mayor Cox adjourned the meeting to the Regulaz Meeting of November 18, 2008 at 6:00 p.m. in the Council Chambers. Lorraine Bennett, CMC, Deputy City Clerk Page 4 -Council Minutes November 17, 2008