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HomeMy WebLinkAboutcc min 2009/11/05MINUTES OF A WORKSHOP OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA November 5, 2009 4:00 p.m. A Workshop of the City Council of the City of Chula Vista was called to order at 4:05 p.m. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers Bensoussan, Ramirez, Thompson and Mayor Cox ABSENT: Councilmember Castaneda 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 Councilmember Ramirez led the Pledge of Allegiance. PUBLIC COMMENTS There were none. WORKSHOP PRESENTATION ON THE STATUS OF UPDATES TO THE CITY'S FISCAL HEALTH PLAN 1. CONSIDERATION OF THE QUARTERLY FINANCIAL REPORT ENDED SEPTEMBER 30, 2009 AND ADOPTION OF A RESOLUTION AMENDING THE 2009/2010 BUDGET Section 504 (f) of the City Charter requires quarterly financial reports to be filed by the Director of Finance through the City Manager. The report for the quarter ending September 30, 2009 is being presented to the Council. Council Policy 220-02, "Financial Reporting and Transfer Authority," was established in January 1996, and allows budget transfers to be completed. Adoption of the resolution amends the 2009/2010 budget. (Finance Director) City Manager Sandoval gave an overview of the City's Fiscal Health Plan that included accomplishments and goals in the areas of expenditure reductions, increased revenues, economic development and job creation, and budget reforms. WORKSHOP (Continued) Page 1 -Council Minutes November 5, 2009 Finance Director Kachadoorian gave an overview of the first quarter financial report for 2009/2010. She noted that for the first time in six yeazs, no reserves had been utilized to close the books. She then gave the financial projections for fiscal yeaz 2009/2010, and stated that revenues were down, and that the budgetazy gap needed to be addressed. Councilmember Thompson requested that staff look at specific ways of increasing sales tax revenues with respect to construction. Deputy Mayor Ramirez commented on the need to seek short and long term revenue sources. He suggested that staff engage in development of the LEAN program, and to have staff come back with a report on its progress. Mayor Cox suggested that staff come back to the Council in the next couple of months with an update on ideas for the LEAN program. Councilmember Bensoussan suggested increasing the enterprise zone as an incentive for job creation, mazketing the Chula Vista Auto Pazk, seeking funding sources for facade improvements on Third Avenue, entertaining the idea of having an Economic Development Commission, and to have local experts sit on other regional committees. Councilmember Thompson suggested tasking local institutions of higher education to take an independent comprehensive look at the City's sources of revenue and to provide reality-based recommendations on ways to increase revenues without increasing taxes to citizens. ACTION: Mayor Cox moved to accept the Treasurer's Report, and to adopt the following Resolution No. 2009-262, headings read, text waived: A. QUARTERLY FINANCIAL REPORT FOR THE QUARTER ENDED SEPTEMBER 30, 2009 B. RESOLUTION NO. 2009-262, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING FISCAL YEAR 2009/2010 BUDGET IN ACCORDANCE WITH THE COUNCIL POLICY ON FINANCIAL REPORTING AND TRANSFER AUTHORITY, AND APPROPRIATING AMOUNTS TO THE FIRE EQUIPMENT REPLACEMENT FUND AND FROM THE AVAILABLE FUND BALANCE IN THE POLICE GRANTS FUND (4/STHS VOTE REQUIRED) Councilmember Bensoussan seconded the motion and it carried 4-0. Page 2 -Council Minutes November 5, 2009 WORKSHOP (Continued) 2. UPDATE OF THE CITY'S FISCAL HEALTH PLAN RELATED TO DEBT RESTRUCTURING OPTIONS On January 20, 2009, the City Council endorsed the City Manager's "Fiscal Health Plan," which included the review of the outstanding debt obligations to ensure that the City would continue to meet its debt obligations and minimize the impacts to City services. (Finance Director) Finance Director Kachadoorian provided an overview of the City's Public Facilities Development Impact Fee (PFDIF) program. She then introduced Julio Morales, Senior Managing Consultant, Public Financial Management, Inc., who presented financing options that included refunding the 2000 Certificates of Participation for the Corporation Yard, having the City issue certificates of participation to reimburse Public Facilities Development Impact Fee (PFDIF) funds for Phase Three of the Civic Center project, and refunding or restructuring the 2002 certificates of participation for the Police Facility. Finance Director Kachadoorian suggested that Council direct staff to come back with recommendations for additional assurances to prevent impacts to the General Fund for the future. It was the consensus of the Council to direct staff to continue to move forward with the debt restructuring options as recommended under the Fiscal Health Plan. CONSIDERATION OF APPROVAL OF AGREEMENTS FOR UNDERWRITING SERVICES AND BOND AND DISCLOSURE COUNSEL SERVICES As a result of the significant reduction in development-related fees currently being collected, the City is anticipating restructuring a portion of the debt related to its Public Facilities Development Impact Fees obligations. It is anticipated that this restructuring will enable the City to better meet its long-term financial goals. Adoption of the resolutions approves the agreements for bond underwriting services and bond counsel services. (Finance Director). ACTION: Mayor Cox moved to adopt the following Resolution No. 2009-263, heading read, text waived: A. RESOLUTION NO. 2009-263, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT WITH THE INVESTMENT BANKING FIRM OF E.J. DE LA ROSA & CO., INC. TO PROVIDE UNDERWRITING SERVICES FOR RESTRUCTURING OF CITY BONDED DEBT IF DEEMED ECONOMICALLY FEASIBLE Councilmember Thompson seconded the motion and it carried 4-0. WORKSHOP (Continued) Page 3 -Council Minutes November 5, 2009 Item 3B was removed from the agenda at the request of staff, and the item was not discussed. B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AS IMPRACTICAL, AND APPROVING AN AGREEMENT WITH STRADLING, YOCCA, CARLSON & RAUTH FOR BOND AND DISCLOSURE COUNSEL SERVICES 4. RESOLUTION NO. 2009-264, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA REPLACING THE GENERAL FUND RESERVE POLICY PER THE CITY'S FISCAL HEALTH PLAN On January 20, 2009, the City Council endorsed the City Manager's "Fiscal Health Plan." The plan was created to address the City's immediate financial emergency, as well as its long-term fiscal sustainability, including an update of the General Fund Reserve Policy. The proposed draft policy provides guidelines for the use of reserves as well as increased minimum reserve levels. (Finance Director) City Manager Sandoval introduced the item. Finance Director Kachadoorian presented the current General Fund Reserve Policy, with the recommendation to increase the general fund reserve level from 8 percent to 15 percent, plus a 5 percent minimum economic contingency reserve and a 3 percent minimum catastrophic event reserve. She recommended that within the next one to three years the City should work toward stabilizing reserves, then during yeazs four through ten, the City should build reserves from the current level to a level of 23 percent. She also recommended adding one-time revenues to the reserves. Deputy Mayor Ramirez suggested that staff come back with a formula or plan on how it could achieve a 23 percent reserve level. ACTION: Mayor Cox moved to adopt Resolution No. 2009-264, heading read, text waived, with the understanding that this is a long teen policy goal. Councilmember Bensoussan seconded the motion and it carried 4-0. ADJOURNMENT At 6: ] 6 p.m., Mayor Cox adjourned the meeting to a Special Meeting on November 9, 2009 at 2:00 p.m., and thence to the Regulaz City Council Meeting on November 17, 2009, at 4:00 p.m., in the Council Chambers. (The November 10, 2009 meeting was cancelled). Lorraine Bennett, CMC, Deputy City Clerk Page 4 -Council Minutes November 5, 2009