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HomeMy WebLinkAbout2009/04/21 Item 1 D R,'\FT MINUTES OF A REGULAR MEETING OF THE CITY COuNCIL OF THE CITY OF CHULA VISTA December 16, 2008 6:00 P.M. A Regular Meeting of the City Council of the City of Chula Vista was called to order at 6:00 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers Bensoussan (arrived at 6:02 p.m.), McCann, Ramirez, and Mayor Cox ABSENT: Castaneda (excused) ALSO PRESENT: Interim City Manager Tulloch, City Attorney Miesfeld, City Clerk Norris, and Deputy City Clerk Bennett PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE CONSENT CALENDAR (Items 1-7) 1. RESOLUTION NO. 2008-290, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DESIGNATING AND SETTING ASIDE CERTAIN CITY- OWNED REAL PROPERTY FOR STREET, PUBLIC UTILITY, LANDSCAPING, SIDEWALK AND SEViER PURPOSES FOR DISCOVERY FALLS DRIVE AND HUNTE PARKWAY The City of Chula Vista is leasing to High Tech High a portion of a City-owned parcel along the south side of Hunte Parkway, east of the future extension of Discovery Falls Drive. In order to provide access to the site, to provide for franchise use, and to ensure continuity and consistency ofthe~right-of-way, portions of the parcel must be designated and set aside for street, public utility, public sewer, landscape buffer, and sidewalk purposes. Adoption of the resolution and the filing of a Certified Copy with the County Recorder's Office will establish the intended and physical use of the land. (City Engineer/Engineering Director) Staff recommendation: Council adopt the resolution. 2. A. RESOLUTION NO. 2008-291, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE ENGINEER'S REPORT FOR PROPOSED ASSESSMENT DISTRICT AD 2008-01 ALONG GLEN HAVEN WAY A.NTI SETTING THE TIME AND PLACE FOR A PUBLIC HEARING B. RESOLUTION NO. 2008-292, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE TRANSFER OF $100,000 FROM EXISTING CAPITAL LMPROVEMENT PROJECT STL306 "SOUTHWESTERN CHULA VISTA IMPROVEMENTS" TO EXISTING CAPITAL IMPROVEMENT PROJECT STL304 "GLENHA VEN WAY STREET IMPROVEMENTS" FOR EXPENDITURES RELATED TO PUBLIC STREET IMPROVEMENTS Page I - Council Minutes December 16, 2008 Iff ~I DRA.FT CONSENT CALENDAR (Continued) On December 9,2008 the City Council accepted a petition signed by 27 of the 37 owners ofresidential properties along Glenhaven Way, Elm Avenue and Amy Way, west of First Avenue, requesting that special assessment district proceedings be commenced for the purpose of financing the construction of curbs, gutters, sidewalks and street improvements. The council also directed the City Engineer to prepare the required Engineer's Report for the proposed district. Adoption of the resolutions approves the Engineer's Report containing the preliminary design and cost estimates, sets the time and place for a public hearing, and approves the proposed Assessment District Boundary. (City Engineer/Engineering Director) Staff recommendations: Council adopt the resolutions. 3. RESOLUTION NO. 2008-293, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CONSTRUCTION CHANGE ORDERS FOR MCMILLIN LAND DEVELOPMENT FOR THE CONSTRUCTION OF PROCTOR VALLEY ROAD REACH 5 (AGUA VISTA DRIVE TO COASTAL HILLS DRIVE) McMillin Land Development has constructed a segment of Proctor Valley Road between Agua Vista Drive and Coastal Hills Drive. This roadway is within the Transportation Development Impact Fee (TDIF) program, and therefore eligible construction costs are credited against the payment of TDIF fees for the development. (City Engineer/Engineering Director) Staff recommendation: Council adopt the resolution. 4. RESOLUTION NO. 2008-294, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE CITY OF CHULA VISTA CA.FETERIA BENEFITS PLAN FOR 2009 The Internal Revenue Code requires that employees offering cafeteria plans under Section 125 have a written plan document and that the employer adopt the plan document annually. Adoption of the resolution fulfills this requirement. (Human Resources Director) Staff recommendation: Council adopt. the resolution. 5. RESOLUTION NO. 2008-295, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA GRANTING A PERIOD FOR TWO YEARS ADDITIONAL SERVICE CREDIT PURSUANT TO GOVER.NMENT CODE SECTION 20903 FOR ALL LOCAL MISCELLANEOUS Ai'JD LOCAL PUBLIC SA.FETY (POLICE) EMPLOYEES AND MEMBERS OF THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM (CalPERS) Page 2 - Council Minutes December 16,2008 / It - .2... DRAFT CONSENT CALENDAR (Continued) In an effort to significantly reduce the Fiscal Year 2009 and 2010 General Fund budgets by reducing the number of benefited employees throughout the organization, staff is proposing that Council grant Two Years Additional Service Credit for eligible employees, and provide for a limited medical incentive program for those that retire during the prescribed window period. The proposal is to offer this benefit to all Local Miscellaneous and Local Public Safety (Police) employees, in all departments of the City. (Human Resources Director) Staff recommendation: Council adopt the resolution. 6. RESOLUTION NO. 2008-296, 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 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) Staff recommendation: Council adopt the resolution. 7. ORDINANCE OF THE CITY OF CHULA VISTA ESTABLISHING THE DEVELOPMENT AND PROCESSING AND IMP ACT FEE PAYMENT PLAN PROGRAM (FIRST READING) The City of Chula Vista requires the payment of various processing, development impact, capacity, and in-lieu fees to ensure new development mitigates its impact on public facilities. The payment of these fees is a substantial commitment for many projects, and spreading the payment of the fees over an extended period may assist in the development of projects. Members of the development community have contacted the City and requested an extended payment schedule program be considered. The proposed Ordinance reR-resents the City's response to this request. (City Engineer/Engineering Director, Planning and Building Director, Finance Director) Staff recommendation: Council hold first reading of the ordinance. ACTION.: Deputy Mayor McCann moved to approve staffs recommendations and offered Consent Calendar Items 1-7, headings read, text waived. Councilmember Ramirez seconded the motion and it carried 4-0. ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. Page 3 - Council Minutes December 16,2008 /1} -3 DRAFT PUBLIC COMMENTS Theresa Acerro, Chula Vista resident, representing the Southwest Chula Vista Civic Association, spoke in opposition to the proposed MMC Peaker Power Plant. Norbert Stein, Chula Vista resident, announced his upcoming 96th birthday. He stated that despite the current economic state and the housing foreclosures, the economy would turn around. He then recited his Christmas poem to the audience. PUBLIC HEARINGS 8. CONSIDERATION OF AFFIR.MING THE DETERMINATION BY THE COUNTY OF SAN DIEGO IN 1980 THAT THE OTAY QUARRY OPERATION WAS A VESTED LEGALL Y NON-CONFORMING USE Rimrock Ca LLC owns and operates the Otay Ranch Pit/Rock Mountain Mine located at the eastern terminus of Main Street. In 1980, the County of San Diego formally determined that the site was a vested legally non-conforming mining operation. This determination was made based upon the previously approved grading plan/permit(s) and accompanying legal description for the site. The applicant is requesting that the Chula Vista City Council affirm the previous determination by the County of San Diego. (Planning and Building Director) . Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Mayor Cox opened the public hearing. . Rob Cameron, project applicant, representing Rimrock Quarry, thanked staff for its work on the proj ect. There being no further members of the public who wished to speak, Mayor Cox closed the public hearing. ACTION: Deputy Mayor McCann moved to adopt the following Resolution Nos. 2008-297 and 2008-298, headings read, textwaived: A. RESOLUTION NO. 2008-297, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AFFIRMING THE DETERMINATION BY THE COUNTY OF SAN DIEGO IN 1980 THAT THE OTAY QUARRY OPERATION LOCATED AT THE EASTER.N TER.MINUS OF MAIN STREET, CHULA VISTA, WAS A VESTED LEGALL Y NON-CONFORMING USE B. RESOLUTION NO. 2008-298, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN INDEMNIFICATION AGREEMENT BY AND BETWEEN THE CITY OF CHULA VISTA AND RIMROCK, CA LLC AND JAMES P. BALDWIN; AND APPROVING A RELINQUISHMENT OF RIGHTS AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND RIMROCK CA LLC, RR QUARRY LLC, JAMES P. BALDWIN AND OTAY VALLEY QUARRY LLC Councilmember Ramirez seconded the motion and it carried 4-0. Page 4 - Council Minutes December 16, 2008 //1 --if DRAFT PUBLIC HEARINGS (Continued) 9. CONSIDERATION OF A CONDITIONAL USE PERMIT, PCC-08-017, TO OPERATE THE SOUTH BAY SWAP MEET AT THE CRICKET WIRELESS AMPHITHEATRE PARKING LOTS LOCATED AT 2050 ENTERTAINMENT CIRCLE Mr. Jose Eduardo Morfin of the South Bay Swap Meet, and Mr. Thierry Gray, General Manager of Cricket Wireless Amphitheater are requesting approval of a Conditional Use Permit to operate the South Bay Swap Meet in the amphitheatre parking lots. The proposed open-air swap meet would be held Saturdays and Sundays only in the parking lots of the amphitheater, and would involve an estimated 400 vendors and 4,000 customers. (Planning and Building Director) Notice of the hearing was given in accordance with legal requirements, and the hearing was held on the date and at the time specified in the notice. Councilmember Bensoussan stated that out of an abundance of caution, she would be abstaining from voting on Item 9, since the matter was presented before the Planning Commission when she was a Planning Commissioner. Mayor Cox opened the public hearing. There being no members of the public who wished to speak, Mayor Cox closed the public hearing. ACTION: Mayor Cox moved to adopt the following Resolution No. 2008-299, heading read, text waived: RESOLUTION NO. 2008-299, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONSIDERING THE ADDENDUM TO EIR95-03 AND APPROVING CONDITIONAL USE PERMIT PCC-08-017 TO OPERATE A.N OPEN AIR SWAP MEET WITHIN THE PARKING LOTS OF THE CRICKET WIRELESS AMPHITHEATRE LOCATED AT 2050 ENTERTAINMENT CIRCLE Deputy Mayor McCann seconded the motion and it carried 3-0-1 with Councilmember Bensoussan abstaining. Mayor Cox announced that Items 10, 11, and 12 would be rearranged on the agenda, and heard as follows: Item 12 - Public Comments Item 11- Public Comments Item 11 - Staff presentation Item 12 - Staff presentation Item 10 10. This item was moved to the end of the agenda, and heard after staff's presentation on Item 12. 11. This item was heard after public comments for Item 12. Page 5 ~ Council Minutes December 16,2008 /1j~5 DRAFT PUBLIC HEARINGS (Continued) 12. STAFF REPORT AND PUBLIC INPUT ON POTENTIAL REVENUE ENHANCEMENTS This item was placed on the agenda in response to a Council referral from the December 4,2008 Budget Workshop. (Budget and Analysis Director) Interim City Manager Tulloch presented potential revenue enhancements. Public comments for Item 12 were taken out of order and heard at this time. Baba Olaogun, Chula Vista resident, did not speak, but submitted a speaker slip suggesting advertising and thinking outside of the box. Bob Coleman, Chula Vista resident, spoke of the need for a collaborative economic effort, equitable and fair Cost of Living Adjustments (COLAs); and suggested prioritizing Public Services and after-school programs. He recommended eliminating car allowances for the Council and Management staff, instituting a sales tax of up to one percent, retaining passport application services, increasing fees for recreation classes and business license fees. Theresa Acerro, Chula Vista resident, representing the Southwest Chula Vista Civic Association, suggested a delay in employee COLAs, partial payment by employees and Council of the City's pension plan, elimination of car allowances, Redevelopment Advisory Committee and Chula Vista Redevelopment Corporation. She also suggested debt collection from the Redevelopment Agency, provision of ambulance services to eliminate calls for service to the Fire Department, establishment of an oversight committee, and establishment of easier public records request process. Bob O'Keefe, Chula Vista resident, stated there was a need to retain the Recreation STRETCH Program, and suggested that the City establish a $12 monthly fee and give parents the opportunity to make voluntary donations. Larry Breitfelder, Chula Vista resident, suggested elimination of employees' pay increases, and suggested that there be long-term fundamental' reform before consideration of a sales tax mcrease. Patricia Aguilar, Chula Vista resident, suggested long term restructuring, a sales tax increase to be contingent on a sunset clause; a fee for employee parking; and establishment of an enterprise fund. Jerry Scott, Chula Vista resident, suggested elimination of the Police Department's jail operation. Mitch Thompson, Chula Vista resident, cautioned the City about spending funds on a marketing plan for a sales tax measure. He suggested establishment of an assessment district for public safety that would only apply to residential properties, and establish an assessment district for Eastlake Library. Page 6 - Council Minutes December 16, 2008 /4-0 DRAFT PUBLIC HEARINGS (Continued) Deputy Mayor McCann suggested leasing vacant properties in the City, as well as the addition of coffee carts at City Hall and John Lippitt Public Works Center, and ATM machines in the Civic Center lobby. Councilmember Ramirez suggested that employees involved with City programs and operations be provided the opportunity to offer ideas and program suggestions. He requested that department heads offer an environment that would support employee participation with program ideas and suggestions. Councilmember Ramirez asked staff about the status of the employee suggestions that were presented' to the Council at prior budget reduction workshops, and whether or not any of the suggestions had been implemented. Interim City Manager Tulloch responded that an analysis of the prior list would be forthcoming to the Council. 11. REPORT AND CONSIDERATION OF THE INTERIM CITY MANAGER'S PROPOSED BUDGET REDUCTIONS Public comments for Item 11 were taken out of order and heard at this time. Darlene Trujillo-Lopez, spoke on behalf of Linda Brawley, an hourly employee with the Chula Vista Library, and read a letter by Ms. Brawley to oppose cutting library hours, and to support retaining Chula Vista Library services and programs. Darlene Trujillo-Lopez, Library Associate, encouraged the Council to accept the City Manager's budget proposal regarding the Fire Department's search and rescue equipment. Sarah Way, Chula Vista resident, spoke in support of maintaining the Eastlake Library. Amparo Espinosa, San Y sidro resident, spoke in support of retaining the Recreation Therapeutics Program. Chuck Schrader, Chula Vista resident, representing CVEA, stated that the City was placing too much focus on cutting jobs, instead of focusing on ways to generate revenue. To that end, he asked the Council to consider a one.percent sales tax increase. Don Bergeson, Chula Vista .resident, referenced a recent e-mail he submitted to the Council, regarding proposed staffing reductions in the City's Storm Water Management Program (NPDES), and spoke about potential impacts on the City's ability to maintain current standards of compliance with the State's Municipal, Industrial and Construction Permits, and the City's Storm Water Management and Discharge Control Ordinance. Wayne Zarling, La Mesa resident, representing CVEA, stated that the proposed cuts in Parks staffing, would affect maintenance of City parks and increase liability to the City. He asked the Council to look at all alternatives before cutting positions. Page 7 - Council Minutes December 16, 2008 /4-7 DRAFT PUBLIC HEARINGS (Continued) Eduardo Rios, Chula Vista resident and City employee, was opposed to cuts in City services and programs, and suggested seeking ways to address the matter. Stephen Briggs, Chula Vista resident, spoke in support of retaining the STRETCH and DASH programs. Dennis Burlason, Chula Vista resident, representing CVEA, stated that the CVEA union had taken the brunt of the last waves of budget cuts, which were not in line with Police and Fire raises. Furthermore, the Mayor and Council had not turned down their raises over the past years. He stated that his department, Construction and Repair, was slated to see a 38-percent reduction in staffing with the proposed budget reductions. Mark Dube, Chula Vista resident, spoke in support ofthe STRETCH and DASH programs. Magda Maldonado, Chula Vista resident, spoke in support of retaining the Parkway Pool and Recreation Center, Library, and Nature Center. She suggested that the employees reject COLA mcreases. Louise Walker, Chula Vista resident, spoke in support of retaining the Eastlake Library. Itzel Nuno, Chula Vista resident, spoke in support of retaining the Eastlake Library. Vincent Calderon, Chula Vista resident, spoke in support of retaining the Eastlake Library. Patricia Lyons, San Diego resident, spoke in support of retaining the Eastlake Library. Isabelle Espino, Chula Vista resident, spoke in support of retaining the Eastlake Library. Logan Weiler, Chula Vista resident, spoke in support of retaining the Library, Recreation programs, Nature Center, and Parks. Miguel Dominguez, Chula Vista resident, did not speak, but submitted a: speaker slip in support of retaining the STRETCH and DASH programs. Theresa Acerro, Chula Vista Resident, representing the Southwest Chula Vista Civic Association, spoke in opposition to proposed cuts in library and recreation services and staff layoffs. Christopher Hernandez, Chula Vista resident, spoke m support of retaining the DASH and STRETCH programs. Bob Aguilar, Chula Vista resident, submitted a speaker slip but did not speak. Antonio J. Romero, Chula Vista resident, did not speak, but submitted a speaker slip indicating support ofthe Eastlake Library. Page 8 - Council Minutes lIT ,f December 16,2008 DRAFT PUBLIC HEARINGS (Continued) Mark Tuohey, Chula Vista resident, spoke III opposition to proposed staffing cuts for Park Rangers. Mark Bickerstaff, Chula Vista resident, spoke in opposition to proposed staffing cuts for Park Rangers. Joyel Love, Chula Vista resident, spoke in support of retaining library services. Raoul Carillo, City employee, representing the City painters, spoke in support of retaining Construction and Repair positions. Vivian Sherrill, BonitaJChula VistaJEastlake resident, representing the Eastlake- Bonita Democratic Club, gave a summary of its members' suggestions that included union agreement to defer pay raises, deferral of salary increases for all City departments, and lower salaries for the Councilmembers and Mayor. Additionally, she stated that Council and Mayoral staff salaries should be scrutinized for uniformity and considered for adjustment. She also suggested implementing a 10-percent budget cut for all departments; closing City Hall one afternoon per week; increasing City fees, such as traffic fines and usage fees by 20%; creating solutions for collecting taxes on foreclosed properties; shortening hours of operation at City pools, recreation centers and libraries; seeking grants to fund after-school programs; recruiting volunteer help in the City; exploring more grants to support the Nature Center or other facilities; and encouraging shopping and doing business in the City. She cautioned against a sales tax increase due to the risk of losing customers to San Diego. Juan yargas, Chula Vista resident, spoke in support of retaining the STRETCH and DASH programs. Aldous Johnson, Chula Vista resident, did not speak, but submitted a speaker slip indicating support of the STRETCH programs. Jamie Hum, Chula Vista resident, spoke in support of retaining the Eastlake Library. Jaori Kim, Chula Vista resident, spoke in support of the Library and Nature Center, and suggested seeking volunteer services in the City. Audrey Madueno, Chula Vista resident, spoke in support of the DASH and STRETCH programs. Jaime Cuesta, Chula Vista resident, spoke in support of the DASH and STRETCH programs. Jessica Codallos, Chula Vista resident, Chula Vista resident, spoke in support of the DASH and STRETCH programs. Heather Jones, Chula Vista resident, Chula Vista resident, spoke in support of the DASH and STRETCH programs. Page 9 - Council Minutes December 16,2008 //}~'1 DRAFT PUBLIC HEARINGS (Continued) David DiDonato, Chula Vista resident, and City employee, was opposed to the proposed staff reductions. He stated that the City Council and department heads must show leadership by making sacrifices and lowering their s.alaries. Mitch Thompson, representing the Chula Vista Taxpayers Association, referenced a letter he intended to the Council with suggestions to freeze expenditures to the maximum extent possible, freeze all salaries arid eliminate pay increases to preserve jobs, ensure for the future, matching assets and liabilities, staff incentives for suggestion of cost savings on an ongoing basis, and to including citizen participation. With respect to the Nature Center, he stated that the challenge grant was a short-term solution. Willard Howard, Chula Vista resident, spoke about the need to curtail problems associated with Police and Fire overtime pay, and he spoke in support of Parks, Recreation, Library and Nature Center services. Ted Kennedy, Chula Vista resident, spoke m support of retaining the Eastlake Library, and STRETCH and DASH programs. Patricia Aguilar, Chula Vista resident, suggested reductions in the employee COLA's, a half-cent sales tax increase with a sunset clause. She also suggested Council consideration to put in place, the elements needed to develop structural changes in the local economy to bring additional economic development to the City and change the jobs/housing base for the future. With respect to comments by some of the speakers regarding grant opportunities, Mayor Cox announced that in one week, an amount of $40,000 was raised for the Chula Vista Nature Center as part of the matching $250,000 grant. Mayor Cox announced a recess of the Council Meeting at 8:41 p.m. The meeting reconvened at 8:59 p.m., with all members present. Interim City Manager Tulloch presented a report on Item 11 that included follow-up responses from prior meetings, and a budget process schedule. Discussion ensued among the Council regarding the commencement time of the January 8, 2009 Council Budget Workshop. It was the consensus of the Council that the Council Workshop scheduled for January 8, 2009 would commence at 6:00 p.m. Interim City Manager Tulloch then provided the schedule for presentation of the Budget Reduction Plan and the proposed schedule for staff layoffs. He provided the projected budget deficits of $3.94 million for the current fiscal year and $19.97 million for fiscal year 2009/2010. He stated that staff would present suggestions of how the Council-supported budget cuts would be used, but ultimately, it was the Council's decision. Department directors responded to questipITs asked by the Council at previous meetings, as follows: Page 10 - Council Minutes December 16, 2008 /4 ",/Il DRi\FT PUBLIC HEARINGS (Continued) Recreation Director Martin addressed a question about potential savings by reducing the . temperature of the Lorna Verde pool water. He stated that the water temperature averaged about 82 degrees, and that reducing the temperature would reduce costs. He stated that new equipment had been installed, resulting in reduced gas consumption and reduced costs. Public Works Administrative Services Manager Beamon addressed a question regarding the number of non-LED (light-emitting diode) traffic signals in the City. He stated that the existing 24 non-LED lights would be replaced as they burned out. Regarding a suggestion to include flyers about donations for the Chula Vista Nature Center in trash bills, he informed the Council that the next billing cycle was scheduled for March, at which time the information could be included. Police Chief Emerson addressed a question regarding the number of lieutenants in the Police Department. . He presented charts comparing the number of sworn officers and lieutenants in Chula Vista with other policing agencies in the County and in the State. He stated that by population, Chula Vista had the lowest number of sworn officers per thousand residents in the County, and only two cities, both with lower crime rates than Chuia Vista, had fewer sworn officers per thousand residents in the State. He stated that in Chula Vista, there was one lieutenant for every 26.8 sworn officers, which was the second highest ratio in the County, and the third highest ratio in the State. He stated that in most agencies, there were fewer employees working for each lieutenant. Fire Chief Hanneman provided the daily staffing levels for the Fire Department's nine fire stations. He explained that for the nine stations, there were eight engine companies, two truck companies, one urban sear and rescue division, and two battalions, which totaled 38 staff. He further explained that there were only three staff members per engine, which was lower than others in the region. He also explained the Fire Department's use of overtime, stating that it is more cost efficient to use overtime than to employ the necessary additional staff. Interim City Manager Tulloch asked if there was additional information that staff should bring back in order for the Council to take action to close the budget gap. Councilmember Ramirez requested an analysis of fee increases that would be needed to safeguard community programs slated to be cut from the budget, such as STRETCH and DASH. Interim City Manager Tulloch responded that staff would provide the analysis. Councilmember Bensoussan suggested considering a sliding scale for any program fee increases. The staff report for Item 12 was heard at this time. 12. STAFF REPORT AND PUBLIC INPUT ON POTENTIAL REVENUE ENHA..NCEMENTS This item has been placed on the agenda in response to a Council referral received at the December 4,2008 Budget Workshop. (Budget and Analysis Director) Page 11 - Council Minutes December 16, 2008 11/#/1 DRAFT PUBLIC HEARINGS (Continued) Interim City Manager Tulloch presented an overview of potential revenue sources that included sales tax, utility users' tax, transient occupancy tax, franchise fees, storm water fees, master fee schedule, and development fees. Finance Director Kachadoorian provided information about the local sales tax rate, currently at a rate of 7.75%, and explained the maximum allowable tax increase. She then provided the timeframe and costs associated with a Special Election. Jim Lough, Special Counsel, explained the procedures, time line and potential issues related to the possibility of placing a tax measure on a Special Mail Ballot Election or a General Election. He explained the differences between a special tax and a general tax, and the requirements necessary to place either on a Special Election ballot or a General Election ballot. Mayor Cox requested that Mr. Lough work with staff to create a flow chart to explain the requirements associated with placing a Special Purpose Tax or General Purpose Tax on the ballot. Discussion ensued between the Council and Mr. Lough about the election process as it relates to tax measures. Mayor Cox requested, and Councilmembers Ramirez and Bensoussan agreed, that Mr. Lough work with staff to provide the Council with more detailed data to clarify the elections process for placing a tax measure on a ballot. Councilmember Bensoussan requested statistics that would support a particular decision for or against a mail ballot election versus a poll ballot election. Mr. Lough responded, suggesting that staff contact the League of California Cities, who had related statistics that may be helpful. Councilmember Bensoussan stated that should a ballot measure move forward, that the Council consider encompassing an oversight commission to ensure funds from the tax would be expended the way they were intended. Deputy City Attorney Shirey stated that staff would be working on a response to the Council on the requested data, prior to the Council Meeting of January 6, 2009. Mayor Cox requested that staff provide the potential consequences of declaring a fiscal emergency, and the consequences of local spending if the tax rate goes up before the Council is asked to take action. Finance Director Kachadoorian stated that the bond rating agencIes had indicated that they would not view that negatively. Finance Director Kachadoorian presented data showing the types, rates, and duration of sales taxes that other cities had implemented. She also provided information on Utility Users Tax, and Transient Occupancy Tax, which was currently 10 percent. She stated that should the Council place a sales tax measure on the ballot, it would be fiscally prudent to also place a Utility Users Tax measure on the same ballot. Page 12 ~Council Minutes December J 6, 2008 /11 */J- DRAFT PUBLIC HEARINGS (Continued) Councilmember Ramirez requested that the City Clerk provide the Council with an estimate of additional costs associated with adding a Utilities Users Tax measure on the same ballot as a Sales Ta'C measure. . Lisa Cohen, Chula Vista Chamber of Commerce CEO, spoke m favor of a self-imposed assessment district for the hotel/motel industry in Chula Vista. Director of Conservation and Environmental Services Meacham presented information related to energy, solid waste, and recycling franchise fees.. He provided potential increases, impacts to customers, and timelines for implementation. Further discussion on the matter ensued between staff and the Council. Public Works Administrative Services Manager Beamon presented information related to a potential increase in storm drain fees. Mayor Cox requested an estimate of what additional fees per month would be needed to retain the two employees that otherwise appeared to be part of the unfunded mandate of the State for NPDES (National Pollutant Discharge Elimination System), and what a fee increase would mean in terms of dollars, with the direct nexus for the maintenance and inspections of storm drains.. Councilmember Ramirez requested staff to provide information on the current costs to the City's General Fund for storm drain maintenance. Interim City Manager Tulloch responded that staff would provide the Council with a comprehensive update at the January 6, 2009 Council Meeting. Finance Director Kachadoorian spoke about the Master Fee Schedule and proposed review and updates to be brought forward to the Council. Assistant Director of Building and Housing Remp provided information on development services fees, and stated that an updated rate study was underway. He stated that fees had to be directly related to the costs of providing the services. He added that the scope of departmental responsibilities had increased because of new State mandates as well as new green building code requirements, and that, combined with reduced staffing ,levels would affect the costs for development services fees. Interim City Manager Tulloch indicated that he would provide a list of the ideas presented during this meeting to the Council. Councilmember Bensoussan asked for a summary and clarification regarding the costs of operating the jail. Interim City Manager Tulloch suggested that she meet with Chief Emerson on the matter since the Council had already received this information. Councilmember Ramirez suggested that the matter be addressed before the Public Safety subcommittee. Mayor Cox noted that the budget issues could not be resolved with fee increases alone. Councilmember Ramirez requested a detailed briefing by staff in the next week, about all the issues raised during this meeting, especially revenues and taxes. Page 13 - Council Minutes December 16, 2008 I ;J- ~ 13 DRAFT ACTION ITEMS 10. CONSIDERATION OF APPROVAL OF AN INTERFUND LOAN FROM THE TRANSPORTATION DEVELOPMENT IMPACT FEE FUND TO THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND The downturn in housing development activity for the past several years has led to cash flow issues for the Public Facilities Development Impact Fee Funds (PFDIF). It is necessary at this time to request an interfund loan from the Transportation Development Impact Fee Fund to fund the annual debt service obligations of the PFDIF. (Finance Director) Finance Director Kachadoorian presented an overview of the City's debts and funding sources. She also provided the schedule of payments of the debts. She proposed an interfund loan to fund the current year's debt service payments of $5.2 million, in order to have the ability to see what will happen with the. housing market. She explained that it is less costly during the bad economic times to take an interfund loan than to go out to the market for municipal bonds. ACTION: Deputy Mayor McCann moved to adopt the following Resolution No. 2008-300, heading read, text waived: RESOLUTION NO. 2008-300, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN INTERFUND LOAN FROM THE TRANSPORTATION DEVELOPMENT IMPACT FEE FUND TO THE PUBLIC FACILITIES DEVELOPMENT IMP ACT FEE FUND AND APPROPRlA TING FUNDS THEREFOR (4/5THS VOTE REQUIRED) Councilmember Ramirez seconded the motion and it carried 4-0. Finance Director Kachadoorian then gave an overview of the outstanding existing Redevelopment Agency debt. obligations. Assistant Director of Redevelopment and Housing Crockett further clarified the Redevelopment Agency deficit and projected Redevelopment Agency five-year forecast. Items 11 and 12 were taken out of order, and considered prior to Item 10. OTHER BUSINESS 13. INTERIM CITY MANAGER'S REPORTS Interim City Manager Tulloch thanked his colleagues and City staff, and expressed appreciation for their work. He then thanked the Council for the opportunity to serve as Interim City Manager. Deputy Mayor McCann thanked Mr. Tulloch for his leadership as Interim City Manager. Page 14 - Council Minutes /11,1'1 December 16,2008 DRAFT OTHER BUSINESS (Continued) Mayor Cox expressed her gratitude and praise to Mr. Tulloch for his work. She then introduced newly appointed City Manager, Jim Sandoval, who would begin his service on December 18th. Councilmember Bensoussan thanked Mr. Tulloch for his work and for bringing her up to speed. Councilmember Ramirez thanked Mr. Tulloch, stating that he had learned a lot and had developed respect for Mr'-Tulloch's skills and abilities. 14. MAYOR'S REPORTS A. Consideration of City Council regional and committee assignments. Mayor Cox stated that she had received a request from Councilmember Castaneda asking to hold discussion of the item so he could be present to discuss the assignments. She did however suggest discussion of appointment of the Otay Valley Regional Park Preserve Owner Manager (OVRP/POM), due to an upcoming meeting. ACTION: Deputy Mayor McCann moved to appoint Councilmember Bensoussan as the Otay Valley Regional Park-Preserve Owner Manager (OVRP/POM) representative for the City of Chula Vista. Councilmember Ramirez seconded the motion. Interim City Manager Tulloch clarified that the Preserve Owner Manager (POM) Representative and the Otay Valley Regional Park Policy Committee Member, were separate positions. Mayor Cox suggested that the two positions be filled by the same person, and, if he was interested, that Deputy Mayor McCann continue to serve on the Otay Valley Regional Park Policy Committee and also serve as the OVRP/POM representative. ACTION: Deputy Mayor McCann withdrew his motion, and stated that he was interested in keeping his position as the OVRP Policy Committee Member, and in addition, serve as the OVRP/POM representative. It was the consensuses of the Council that Deputy Mayor McCann remain as the OVRP Policy Committee representative and also pick up the new assignment of POM representative, previously held by Deputy Mayor Rindone. Steve Alcove; San Diego .resident, and President of ATU Local 1309, asked for Council consideration to re-appoint former Councilmember Rindone to the Metropolitan Transit System (MTS) Board. Former Councilmember Jerry Rindone expressed his interest to be considered for re-appointment as Chula Vista's representative on the MTS Board. Page 15 - Council Minutes December 16, 2008 /4~/E DRAFT Discussion ensued amongst the Councilmembers regarding possibly postponing the appointment of the Chula Vista MTS Board representative until the next Council meeting in January. Mr. Rindone requested consideration of a decision by the Council immediately, since the first meeting of the Board was scheduled for January 8, 2009. ACTION: Councilmember Bensoussan moved to appoint Jerry Rindone as Chula Vista's representative on the Metropolitan Transit System Board. Mayor Cox seconded the motion and it carried 4-0. It was the consensus of the Council to postpone discussion of the remaining Council committee assignments until Councilmember Castaneda could participate. B. Council consideration of support staff in the Office of Mayor and Council. (Mayor Cox and Councilmember Castaneda) Mayor Cox announced that Councilmember Ramirez had offered to take Councilmember Castaneda's place to discuss with the Mayor the matter of support staff in the Office of Mayor and Council. Councilmember Ramirez responded, stating that he would get confirmation of this by Councilmember Castaneda, and if that was Councilmember Castaneda's intent, that Councilmember Ramirez would meet with Mayor Cox on this issue. 15. COUNCILMEMBERS' COMMENTS Councilmember Bensoussan gave her appreciation to the public for par:ticipating in the meeting, and she thanked the Mayor for allowing the public speakers to speak earlier in the meeting. Councilmember Ramirez also stated his appreciation to the Mayor for accommodating the speakers. He stated that he attended the recent Eastlake Veterinary Clinic event, which resulted in the adoption of approximately 28 pets, some of which were on the euthanasia list. He thanked his sister, Dr. Bischel and her staff for their work with the event. Deputy Mayor McCann thanked the public for their participation in the budget workshops, and those constituents who had contacted him personally regarding budget matters, and he noted the positive public input on ways to seek solutions to the budget problem. He acknowledged Interim City Manager Tulloch for his work, and also acknowledged newly appointed City Manager Jim Sandoval. He thanked employees for their input at the meeting, and noted that the management team had been stabilized, including the appointments of the City Attorney and City Clerk, which would assist with stabilizing the organization. He then wished everyone a happy holiday. Mayor Cox acknowledged and gave appreciation to those City staff that would be working over the furlough. Mayor Cox recessed the meeting to convene in Closed Session at 11 :40 p.m. Page 16'- Council Minutes December 16, 2008 /I!- ~ /? DRAFT CLOSED SESSION 16. PUBLIC EMPLOYEE APPOINTMENT PURSUANT TO GOVERNMENT CODE SECTION 54957: Title: City Manager ACTION: Deputy Mayor McCann moved to authorize the Mayor to execute City Manager James Sandoval's Elflployment Agreement. Councilmember Ramirez seconded the motion and it carried 4-0. 17. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE 54957.6 Agency designated representatives: Scott Tulloch, Marcia Raskin, Bart Miesfeld, Rod Betts, Maria Kachadoorian, Edward Van Eenoo, Leah Browder Employee organizations: CVEA, IAFF, POA, WCE, Mid-Management, Professional and Unrepresented Groups No reportable action was taken on these items. ADJOURNMENT At 1:40 a.m., Mayor Cox adjourned the meeting to the Regular Meeting of January 6, 2009 at 4:00 p.m. in the Council Chambers. ~ /Lorraine Bennett, CMC, Deputy City Clerk Page 17 - Council Minutes December 16, 2008 //1 -/7 DRAFT MINUTES OF A SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA January 5, 2009 6:00 P.M. A Special Meeting ofthe City Council of the City of Chula Vista was called to order at 6:01 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Counci1members Bensoussan, Castaneda, McCann, Ramirez, and. Mayor Cox ABSENT: None ALSO PRESENT: City Manager Sandoval, Assistant City Manager Tulloch, and City Attorney Miesfeld CLOSED SESSION 1. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE 54957.6 D Agency designated representatives: Jim Sandoval, Scott Tulloch, Marcia Raskin, Bart Miesfeld, Rod Betts, Maria Kachadoorian, Leah Browder . Employee organizations: CVEA, IAFF, POA, WCE, Mid-Management, Professional and Unrepresented Groups No reportable action was taken on this item. ADJOURNMENT At 9:00 p.m., Mayor Cox adjourned the meeting to the next Regular Meeting of the City Council on January 6, 2009 at 4:00 p.m. in the Council Chambers. ~ Lorraine Bennett, CMC, Deputy City Clerk Page 1 - Council Min utes January 5, 2009 /t6 " /