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HomeMy WebLinkAbout2010/02/23 Item 1 DRAFT MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL AND A SPECIAL MEETING OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA October 27, 2009 4:00 P.M. A Regular Meeting of the City Council and a Special Meeting of the Redevelopment Agency of the City of Chula Vista were called to order at 4:00 p.m. in ,the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL PRESENT: Council/Agency Members Bensoussan, Castaneda (arrived at 4:42 p.m.), Ramirez, Interim Thompson, and Mayor/Chair Cox ABSENT: None ALSO PRESENT: City Manager Sandoval, City Attorney Miesfeld, City Clerk Norris, and Deputy City Clerk Bennett PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Deputy Mayor Ramirez led the Pledge of Allegiance. SPECIAL ORDERS OF THE DAY · OATH OF OFFICE: RUDY G.GONZALEZ, MOBILEHOME RENT REVIEW COMMISSION City Clerk Norris administered the oath of office to Mr. Gonzalez and Deputy Mayor Ramirez presented him with a certificate of appointment. . INTRODUCTION OF 34 SPANISH EXCHANGE STUDENTS FROM SALAMANCA AND CIUDAD RODRIGO, SPAIN, BY LILIA MEZA, DIRECTOR AND COORDINATOR OF THE ACADEMIC AND CULTURAL EXCHANGE PROGRAM "EDUCACION SIN FRONTERAS" - SWEETWATER UNION HIGH SCHOOL DISTRICT Ms. Meza introduced the 34 visiting Spanish exchange students and their teachers. . INTRODUCTION BY CITY MANAGER JIM SANDOVAL OF DIRECTOR OF LIBRARY SERVICES, BETTY WAZNIS City Manager Sandoval introduced thc City's new Library Director, Betty Waznis. Page 1 - CouncillRDA l\Ilinutes 1-1 October 27, 2009 DRAFT CONSENT CALENDAR (Items 1-8) 1. APPROVAL OF MINUTES of the Special and Regular Meetings ofJune 23, 2009. Staff recommendation: Council approve the minutes. 2. RESOLUTION NO. 2009-249, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING THE SUMMARY VACATION OF A PORTION OF FIRST AVENUE FROM NAPLES STREET TO PALOMAR STREET AND DIRECTING THE CITY CLERK TO RECORD ALL DOCUMENTS REQUIRED WITH THE COUNTY RECORDER Staff is proposing the vacation of a portion of First Avenue from Naples Street to Palomar Street that is no longer needed for street purposes since the construction of improvements has rendered the subject portion of First Avenue excess right-of-way. Adoption of the resolution allows the excess right-of-way to be summarily vacated with a reservation for utility easements. (Director of Public Works) Staff recommendation: Council adopt the resolution. 3. RESOLUTION NO. 2009-250, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL BIDDING PROCESS AND APPROVING A TWO-PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA, AND MARION B. BORG ENVIRONMENTAL CONSULTING SERVICES, RELATED TO THE PREPARATION OF ENVIRONMENTAL DOCUMENTS AND THE COORDINATION AND OVERSIGHT OF THE PREPARATION OF ENVIRONMENTAL DOCUMENTS, ON BEHALF OF THE CITY OF CHULA VISTA Adoption of the resolution approves a two-party agreement with Marion B. Borg Environmental Consulting for environmental consulting services for a twenty-four month period. The contract is for an amount not to exceed .$100,000. (Deputy City Manager/Development Services Director) Staff recommendation: Council adopt the resolution. 4. RESOLUTION NO. 2009-251, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A DESIGN BUILD AGREEMENT WITH TELLIARD CONSTRUCTION FOR THE DESIGN AND INSTALLATION OF SHADE STRUCTURES AT ROHR PARK IN THE CITY OF CHULA VISTA, CALIFORNIA (CIP NO PR301), AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCIES AS NECESSARY TO EXPEND ALL PROJECT FUNDS IN A TIMELY MANNER The existing gazebos at Rohr Park were installed in 1976. The roof structures associated with these gazebos are made of wood and fiberglass that continues to deteriorate. These gazebos are part of the City's shelter reservation system and are utilized often by park users. (Director of Public Works) Staff recommendation: Council adopt the resolution. Page 2 - CouncilfRDA Minutes 1-2 October 27, 2009 DRAFT CONSENT CALENDAR (Continued) 5. RESOLUTION NO. 2009-252, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $3,280 FROM THE BUREAU OF JUSTICE ASSISTANCE, AND APPROPRIATING SAID FUNDS TO nIE POLICE GRANT FUND FOR THE BULLETPROOF VEST PARTNERSHIP (4/5THS VOTE REQUIRED) The Police Department was recently notified by the Bureau of Justice Assistance of approved funding for the Bulletproof Vest Partnership (BVP). The BVP funding will pay for 50% of the cost of bulletproof vests for police officers. Matching funds are already included in the Police budget. (Police Chief) Staff recommendation: Council adopt the resolution. 6. RESOLUTION NO. 2009-253, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $23,180 FROM THE CALIFORNIA OFFICE OF TRAFFIC SAFETY, At'ID APPROPRIATING $17,385 TO THE POLICE GRANT FUND FOR THE CLICK IT OR TICKET PROGRAM (4/5THS VOTE REQUIRED) The California Office of Traffic Safety awarded $23,180 to the Police Department for the Click It or Ticket Program. The goal of the California Click It or Ticket project is to increase seat belt use statewide to. 96% by September 30, 2010. (Police Chief) Staff recommendation: Council adopt the resolution. 7. RESOLUTION NO. 2009-254, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $357,330 FROM THE UNITED STATES DEPARTMENT OF JUSTICE OFFICE OF JUSTICE PROGRAMS BUREAU OF JUSTICE ASSISTANCE FOR THE NEIGHBORHOOD PROSECUTION PROGRAM, APPROPRIATING $91,214 TO THE FISCAL YEAR 2010 AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA) FUND, AND APPROPRIATING $10,000 FROM THE AVAILABLE BALANCE OF THE STATE LAW ENFORCEMENT SUPPLEMENTAL FUND (SLESF); AND ADDING ONE DEPUTY CITY ATTORNEY II AND 0.5 FTE LEGAL ASSISTANT TO THE AUTHORIZED POSITION COUNT OF THE OFFICE OF THE CITY ATTORNEY (4/5THS VOTE REQUIRED) The Police Department received notice of a grant award in the amount of $357,330 from the Office of Justice Programs' Bureau of Justice Assistance for the Neighborhood Prosecution Program. This program will establish a Neighborhood Prosecution Unit (NPU), consisting of one deputy city attorney and a part-time legal assistant, to improve public safety levels at Chula Vista apartment complexes and to engage in extensive outreach with all stakeholders. (Police ChiefJCity Attorney) Staff recommendation: Council adopt the resolution. Page 3 - CounciVRDA Minutes 1-3 October 27, 2009 DRAFT CONSENT CALENDAR (Continued) ACTION: Mayor Cox moved to approve staff's recommendations and offered the Consent Calendar (Items 1-7). Councilmember Bensoussan seconded the motion and it carried 4-0 with Councilmember Castaneda absent. ITEMS REMOVED FROM THE CONSENT CALENDAR There were none. PUBLIC COMMENTS There were none. ACTION ITEMS 8. CONSIDERATION BY THE CITY COUNCIL AND REDEVELOPMENT AGENCY OF APPROVAL OF FUNDING SOURCES FOR THE DEVELOPMENT OF A 143- UNIT PROJECT FOR LOWER INCOME HOUSEHOLDS Chelsea Investment Corporation and Brookfield Shea have proposed the development and construction of a 143-unit affordable housing development for low- income households, kllown as The Landings II within the Winding Walk master planned community. Previously, the City approved a loan of $2.4 million from its HOME Funds and considered a $2 million contribution from The Eastlake Company ("Eastlake") in satisfaction of their affordable housing obligation for Eastlake III. With the current financial market, the funding gap for the project has increased and Chelsea Investment Corporation is requesting that the Redevelopment Agency of the City of Chula Vista consider a pre-commitment of a $4 million loan from its Low and Moderate-Income Housing Fund. Staff is also recommending that the Council amend an Agreement to Post Security to receive the $2 million contribution from Eastlake. (Deputy City Manager/Development Services Director) Housing Manager Mills provided an overview of the proposed low-income housing project. Community Development Specialist Hines provided information regarding project funding and funding constraints. Theresa Acerro, ChuIa Vista resident, spoke in favor of using redevelopment funds for redevelopment in western Chula Vista. She asked about the status of the CHIP program. She also asked when the deferred development fees would be paid by the developers. She asked why the master developer was contributing only $2.6 million to the project, rather than paying for most of the project, and why the cost per unit had increased since February, 2009. She recommended that the redevelopment funding be allocated to rehabilitate existing apartment complexes. Page 4 - CounciI/RDA Minutes 1-4 October 27, 2009 DRAFT ACTION ITEMS (Continued) Mayor/Chair Cox noted a worksheet distributed on the dais by Council!Agency Member Thompson and asked him to address his suggestions. Council! Agency Member Thompson addressed the five suggested provisions for staff and the developer to work towards, including: 1) Developer makes best efforts to secure 35 year financing, which should result in up to a $1 million reduction in City funding, and provide evidence to City to this effect; 2) City funds are takeout only and placed at the time of placement of the permanent loan; 3) City loan amortization is extended to 25 years and interest rate increased to 3.6%, resulting in the same payment level as 2% over 20 years; 4) City loan is reduced by the unused contingency and no contingency transferred to pay any budgeted deferred developer fee; and 5) Developer to work with staff on some reasonable form of review of contingency approval during development to ensure contingency is not used for non-essential development costs and final loan amount is reduced as much as possible. Council! Agency Member Thompson asked; and staff confirmed that provisions 2, 4, and 5 were already in place. He requested that staff work with the developer to meet provisions I and 3. Wally Dieckmann, representing Chelsea Investment Corporation, explained that the Corporation was working to reflect current conditions and letters of intent by the prospective lender in its Performa, to look for longer amortization, although 30-year amortization was standard, and that finding anything beyond that was unlikely. With respect to provision 2, he stated that the takeout loan was permanent. Regarding provision 3, he stated that any potential impacts would need to be analyzed. As to provisions 3 and 4, he stated that the contingency in the Perfornla was a formula required by underwriting from' the lenders to satisfy the bank during the construction period, and that the deferred developer fee would be paid entirely from the cash flow. Council! Agency Member Bensoussan asked staff to clarify remarks regarding the increase in construction costs of the housing units since February. Staff Member Mills responded that the Revenue Code had changed, allowing for a tax credit equity. Mr. Dieckmann further clarified that the actual construction costs for the project had gone down by approximately $755,000 and that the revised Performa was a bookkeeping method of creating tax credit equity, which was not available until about six months ago. Council! Agency Member Bensoussan spoke in support of the proposed project, and she suggcsted for the future, to look at maximizing the amount of money spent in the west on affordable housing and redevelopment, and to urge those involved in the Greenfield construction of affordable housing to also look at opportunities in the west. Council! Agency Member Castaneda stated that he would like to see how the City's redevelopment funds were structured with assurance that the funds be paid back, and to have a spending plan. He stated that the Council should provide clear direction to staff on the use of the funds from the proceeds of the loan repayment. He requested that staff bring back a specific plan to the Council on how to methodically and systematically make investments in western Chula Vista. Council! Agency Member Bensoussan suggested that staff explore any opportunity that presented itself for ownership interest in affordable housing projects, and spoke in favor of expanding redevelopment areas. Page 5 - Council/RDA Minutes 1-5 October 27, 2009 DRAFT ACTION ITEMS (Continued) City Manager Sandoval informed the Council that questions raised on the item would be addressed at the Council Workshop on November 19,2009. ACTION: Council/Agency Member Thompson moved to adopt the following Council Resolution No. 2009-255 and Redevelopment Agency Resolution No. 2009-212, heading read, text waived: COUNCIL RESOLUTION NO. 2009-255 AND REDEVELOPMENT AGENCY RESOLUTION NO. 2009-212, RESOLUTION OF THE CITY COUNCIL AND THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA CONDITIONALL Y APPROVING A LOAN FROM THE LOW AND MODERATE INCOME HOUSING FUND IN AN AMOUNT NOT-TO- EXCEED $4,000,000, AND AMENDING AN AGREEMENT TO POST SECURITY TO ALLOW THE EASTLAKE COMPANY, IN SATISFACTION OF THEIR AFFORDABLE HOUSING OBLIGATION FOR EASTLAKE III, TO PROVIDE THE CITY WITH FINANCIAL ASSISTANCE FOR THE DEVELOPMENT OF A 143-UNIT PROJECT FOR LOWER-INCOME HOUSEHOLDS, THE LANDINGS II AT WINDING WALK Council/Agency Member Bensoussan seconded the motion and it c,arried 5-0. OTHER BUSINESS 9. CITY MANAGER'S REPORTS. City Manager Sandoval congratulated Police Chief Bejerano and Crime Lab Manager Ogino on the Crime Lab's National accreditation. He announced two upcoming Council Workshops on November 5, 2009 regarding the City's Fiscal Health Plan, and on November 19, 2009, a joint Chula Vista Redevelopment CorporationlRedevelopment Agency Workshop. He also recommended cancelling the Council Meeting of November 10,2009. 10. MAYOR'S REPORTS Mayor Cox acknowledged and congratulated the Police Department's Crime Lab staff on its accreditation. She stated that the Elected City Attorney ordinance was tentatively scheduled for the November 17, 2009 Council meeting. She announced that anyone interested in information about the "Committee of 100" could send an e-mail to committeeoflOO@chulavistaca.gov. She further stated that Council consideration for an official City website for the "Committee of 100" would be scheduled for the November 3, 2009 Council meeting. She announced that SDG&E's removal of the overhead transmission lines on the Bayfront would begin on November 2,2009. 11. COUNCILMEMBERS' COMMENTS Deputy Mayor Ramirez thanked members of Veterans of Foreign Wars, VFW Post 2111 on its recent ceremony recognizing military members missing in action and prisoners of war. He encouraged the public to attend future ceremonies, and he then thanked VFW Post 2111 for continuing this remembrance. Page 6 - CounciVRDA Minutes 1-6 October 27, 2009 DRAFT COUNCILMEMBERS' COMMENTS (Continued) Councilmember Castaneda announced the "Healthy Kids Choice" organization was offering a candy buy-back of $1 per pound of wrapped, unopened candy, with proceeds going to the Healthy Kids Choice organization, and that the collected candy would be sent to n"1ilitary troops abroad. The event was scheduled for November 3, 2009, in Escondido. He wished the community a happy and safe Halloween. He reminded everyone to turn back the clocks by one hour on Sunday for daylight savings. He announced the recent grand opening of the UCSD Radiation Oncology Center. Councilmember Bensoussan announced the next "Committee of 100" meeting on January 21, 2010, at 6:30 p.m. in the Council Chambers. She acknowledged the Fire Department's recent awards and promotions event; and the American Legion Awards that recognized members of Police and Fire. The South County Economic Development Corporation and the Chula Vista Chamber of Commerce would be conducting a workshop regarding a fact-finding event for the possible decommissioning of the South Bay Power Plant on November 5, 2009, at South Bay Fish and Grill, which was open to the public at a fee of $1 O. Councilmember Bensoussan requested, and it was the consensus of the Council to direct the City Manager to investigate the status of the apprenticeship program with IBEW and Southwestern College, and if the City Manager deemed it necessary, to establish a task force' to address the matter. Councilmember Thompson acknowledged the work by staff in securing a grant for the Neighborhood Prosecution Program (Consent Item 7), and he encouraged staff to think creatively about doing the most with the grant funding and to maximize safety on the west side. CLOSED SESSION Mayor Cox announced that the follOWIng Closed Session Item would be continued to the November 3, 2009 Council Meeting. This item was not discussed: 12. CONFERENCE WITH LEGAL COUNSEL REGARDING SIGNIFICANT EXPOSURE TO LITIGATION PURSUAJ'IT TO GOVER1'!MENT CODE SECTION 54956.9(b): One Case. ADJOURNMENT At 5:40 p.m., Mayor Cox adjourned the meeting to the next regular meeting on November 3, at 4:00 p.m. in the Council Chambers. The meeting of November 10,2009 was cancelled. ~ ~- Lorraine Bennett, CMC, Deputy City Clerk Page 7 - CouncillRDA Minutes 1-7 October 27, 2009