HomeMy WebLinkAboutcc min 2010/06/08 rda haMINUTES OF MEETINGS OF THE CITY COUNCIL, REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY OF THE CITY OF CHULA VISTA
June 8, 2010 4:00 P.M.
A Regular Meeting of the City Council and Special Meetings of the Redevelopment Agency and
Housing Authority of the City of Chula Vista were called to order at 4:02 p.m. in the Council
Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California
ROLL CALL:
PRESENT: Council/Agency/Authority Members: Bensoussan, Castaneda, Ramirez,
Thompson, and Mayor/Chair Cox
ABSENT: None
ALSO PRESENT: City Manager/Executive Director Sandoval, City Attorney/Agency
Counsel Miesfeld, City Clerk Norris, and Deputy City Clerk Bennett
PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE
Employees of the month, Boushra Salem and Jose Gomez led the Pledge of Allegiance.
SPECIAL ORDERS OF THE DAY
• INTRODUCTION BY RICHARD HOPKINS, PUBLIC WORKS DIRECTOR, OF
EMPLOYEES' OF THE MONTH, BOUSHRA SALEM, SENIOR CIVIL ENGINEER,
AND JOSE GOMEZ, LAND SURVEYOR
Public Works Director Hopkins introduced the employees of the Month, Boushra Salem and Jose
Gomez. Mayor Cox read the proclamation and Deputy Mayor Ramirez presented it to Ms.
Salem and Mr. Gomez.
• PRESENTATION OF CALIFORNIA'S CLEAN AIR AWARD FROM THE
STATEWIDE CALIFORNIA CLEAN AIR PROJECT BY KATT EATON OF THE
INSTITUTE FOR PUBLIC STRATEGIES, TO THE CITY OF CHULA VISTA FOR
ITS LONGSTANDING EFFORTS TO REDUCE SECONDHAND SMOKE IN THE
COMMUNITY THROUGH THE ADOPTION OF SMOKE-FREE OUTDOOR DINING
IN JUNE 2006, AND FOR HOLDING THESE EFFORTS AS A PRIORITY FOR THE
COMMUNITY
Katt Eaton introduced Isabella Martinez and Joelle Osorio representing the Institute for Public
Strategies. Ms. Eaton recognized the City for its adoption of smoke-free outdoor dining, and
then presented the Clean Air award to Mayor Cox who accepted it on behalf of the City. Ms.
Martinez and Ms. Osorio also presented Public Health Leadership awards to Councilmembers
Castaneda and Thompson.
Page I - CC/RDA/HA Minutes June 8, 2010
SPECIAL ORDERS OF THE DAY (Continued)
PRESENTATION OF A PROCLAMATION TO THE U.S. DEPARTMENT OF
HOUSING & URBAN DEVELOPMENT, HOUSING OPPORTUNITIES
COLLABORATIVE, PACIFIC SOUTHWEST ASSOCIATION OF REALTORS, AND
COMMUNITY HOUSING WORKS, PROCLAIMING JUNE 2010, AS NATIONAL
HOMEOWNERSHIP MONTH AND JUNE 26, 2010, AS HOMEOWNERSHIP DAY
IN THE CITY OF CHULA VISTA
Senior Project Coordinator Kurz provided information on the City's neighborhood stabilization
program. Mayor Cox read the proclamation and Councilmember Bensoussan presented it to
representatives of the housing partners.
Mayor Cox announced receipt of an award to Housing Manager Mills by the San Diego Housing
Federation, for her work on the success of the Wakeland Los Vecinos Project.
OATH OF OFFICE
London Meservy, Boazd of Appeals & Advisors
City Clerk Noms administered the Oath of Office to London Meservy, and Councilmember
Thompson presented him with a certificate of appointment.
CONSENT CALENDAR
(Items 1-8)
Item 5 was removed from the Consent Calendaz for separate consideration. Councilmember
Castaneda stated that he would be abstaining from voting on the item due to the proximity of his
property to the project.
APPROVAL OF MINUTES of January 26, and February 2, 2010.
Staff recommendation: Council approve the minutes.
2. WRITTEN COMMUNICATIONS
Letter of resignation from Derek Turbide, Resource Conservation Commission.
Staff recommendation: Council accept the resignation.
RESOLUTION NO. 2010-131, RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA DIRECTING REVIEW OF THE CITY OF CHULA VISTA
CONFLICT OF INTEREST CODE
Adoption of the resolution directs the City Attorney and City Clerk to review the City's
Conflict of Interest Code to determine whether amendments aze needed, and to submit a
notice to the Council prior to October 1, 2010, indicating either that amendments aze
required or that no amendments are necessary. (City Clerk/City Attorney)
Staff recommendation: Council adopt the resolution.
Page 2 - CC/RDA/HA Minu[es June 8, 2010
CONSENT CALENDAR (Continued)
4. RESOLUTION NO. 2010-132, RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA ESTABLISHING THE APPROPRIATIONS LIMIT FOR
THE CITY OF CHULA VISTA FOR FISCAL YEAR 2010-2011
Article XIIIB of the California Constitution approved by the voters in 1979 and
commonly referred to as the Gann Initiative, requires each local government to establish
an Appropriations Limit by resolution each year at a regulazly scheduled meeting or
noticed special meeting. The purpose of the limit is to restrict spending of certain types
of revenues to a level predicated on a base year amount increased annually by an inflation
factor. (Director of Finance/Treasurer)
Staff recommendation: Council adopt the resolution.
This item was removed from the Consent Calendaz.
6. RESOLUTION NO. 2010-136, RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA AWARDING LANDSCAPE MAINTENANCE
CONTRACTS IN FOUR (4) COMMUNITY FACILITY DISTRICTS TO BLUE SKIES
LANDSCAPE FOR VILLAGE 7 MCMILLIN, VILLAGE 7 OTAY RANCH, OTAY
RANCH AM, VILLAGE 11 PHASE 1 AND PHASE 2, FOR THE PERIOD FROM
JULY 1, 2010 THROUGH JUNE 30, 2011; AND AUTHORIZING THE PURCHASING
AGENT TO RENEW THE AGREEMENT FOR FIVE (5) ADDITIONAL, ONE (1)
YEAR OPTION PERIODS
On April 19, 2010, the City received seven bids for this project. In order to increase the
quality of landscape services provided to four (4) Community Facility Districts, a
contract with new terms including a minimum staffing requirement was developed.
Adoption of the resolution awards a contract with Blue Skies Landscape. (Director of
Public Works)
Staff recommendation: Council adopt the resolution.
RESOLUTION NO. 2010-137, RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA APPROVING AN AMENDMENT TO THE PROPERTY
LEASE AGREEMENT WITH HTH LEARNING DATED JANUARY 9, 2007; AND
APPROVING A SECOND LEASE WITH HIGH TECH HIGH FOR THE EXPANSION
PROPERTY; APPROVING RELATED IMPLEMENTING DOCUMENTS; AND
AUTHORIZING THE CITY MANAGER TO EXECUTE SAID AGREEMENTS
In January 2007, the City of Chula Vista and HTH Learning entered into a lease
agreement to allow for the development of High Tech High Chula Vista, a charter high
school within the City's future University Park and Reseazch Center (UPRC). Adoption
of the resolution approves an amendment to the lease agreement with HTH Learning, a
second lease with High Tech High, and related documents. (Deputy City
Manager/Development Services Director)
Staff recommendation: Council adopt the resolution.
Page 3 - CC/RDA/HA Minutes June 8, 2010
CONSENT CALENDAR (Continued)
8. RESOLUTION NO. 2010-138, RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA WAIVING THE FORMAL BIDDING PROCESS AND
APPROVING ATHREE-PARTY AGREEMENT BETWEEN THE CITY OF CHULA
VISTA, ANTHONY J. LETTIERI, FAICP - CONSULTANT, AND JPB
DEVELOPMENT, LLC -APPLICANT, FOR CONSULTING WORK WITH REGARD
TO APPLICANT'S PROJECT INVOLVING OTAY RANCH VILLAGES 3, 4, 8 EAST
AND 10, AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT
JPB Development, LLC, has and will be filing applications for proposed General Plan
and Otay Ranch General Development Plan amendments, Sectional Planning Area (SPA)
Plans, Tentative Maps and related Environmental Impact Reports involving the Otay
Ranch Village 3, 4, 8 East and 10 areas. Under a University Land Offer Agreement
(LOA) approved by the City Council in May 2008, processing of these complex
applications must occur within a defined time period. Adoption of the resolution
approves athree-party agreement to hire Mr. Lettieri to serve as a project manager and
ensure the LOA timelines are met. (Deputy City Manager/Development Services
Director)
Staff recommendation: Council adopt the resolution.
ACTION: Mayor Cox moved to approve staffs recommendations and offered Consent
Calendaz Items 1 through 4, and 6 through 8, headings read, text waived.
Councilmember Castaneda seconded the motion and it carried 5-0.
ITEMS REMOVED FROM THE CONSENT CALENDAR
5 A. RESOLUTION NO. 2010-133, RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA ACCEPTING $109,000 IN ON-BILL FINANCING &
INCENTIVE FUNDS FROM SAN DIEGO GAS & ELECTRIC TO INSTALL A HIGH
EFFICIENCY BOILER AT PARKWAY POOL AND APPROPRIATING $109,000 IN
FINANCING FUNDS TO THE CITY'S ENERGY CONSERVATION FUND (4/STHS
VOTE REQUIRED)
B. RESOLUTION NO. 2010-134, RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA ESTABLISHING A NEW CAPITAL IMPROVEMENT
PROJECT ENTITLED "ENERGY EFFICIENCY: PARKWAY POOL BOILER"
PROJECT (GG211), AMENDING THE FISCAL YEAR 2009/2010 CAPITAL
IMPROVEMENT PROGRAM AND APPROPRIATING $109,000 OF ENERGY
CONSERVATION FUNDS THEREFOR (4/STHS VOTE REQUIRED)
C. RESOLUTION NO. 2010-135, RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA APPROVING A DESIGN BUILD AGREEMENT WITH
BECKMAN ELECTRIC FOR THE ENERGY EFFICIENCY PARKWAY POOL
BOILER PROJECT (GG211)
Page 4 - CC/RDA/HA Minutes June 8, 2010
ITEMS REMOVED FROM THE CONSENT CALENDAR (Continued)
Parkway pool was built in the early 1950's, and was outfitted with a Bryan Boiler that
operated until the early 1980's when it was replaced with a Raypak heater after the
original failed. Recently, staff noticed that several structural parts were beyond repair
and replacing the boiler with a more efficient new boiler was the only solution to solving
the heater problem. The project will be funded through SDG&E 0% interest On-Bill
Financing and incentives as well as existing non-General Fund sources. Adoption of the
resolutions appropriates the SDG&E On-Bill Financing Funds, establishes a new CIP
project, and approves a Design Build Agreement with Beckman Electric. (Director of
Public Works/Director of Conservation & Environmental Services)
ACTION: Mayor Cox moved to adopt Resolution Nos. 2010-133, 2010-134 and 2010-135,
headings read, text waived. Deputy Mayor Ramirez seconded the motion and it
carried 4-0-1, with Councilmember Castaneda abstaining due to a potential
property-related conflict of interest.
PUBLIC COMMENTS
Kevin O'Neill, Chula Vista resident, stated he was offended by a recent advertisement that
claimed Proposition G was discriminatory, and spoke in favor of afour-fifths vote requirement
for the Council to endorse a measure.
Lynda Gilgun, Chula Vista resident, representing the Climate Change Working Group, invited
the community to attend the next Climate Change Working Group public forum on June 16,
2010, at 5:00 p.m., at the Norman Park Senior Center.
PUBLIC HEARINGS
9. CONSIDERATION OF THE ISSUANCE OF TAX EXEMPT OBLIGATIONS WITH
RESPECT TO THE PROPOSED LANDINGS II AFFORDABLE HOUSING
APARTMENTS
Chelsea Investment Corporation (CIC) and Brookfield Shea have proposed the
development and construction of a 143-unit affordable housing development for low-
income households, known as The Landings II located at the northwest corner of
Discovery Falls Drive and Crossroads Street within the Winding Walk master planned
community. In the past year, the City, its Redevelopment Agency and housing Authority
have taken previous actions to approve and appropriate financing for the Project from its
HOME finds, In-lieu Housing funds, and Redevelopment Low and Moderate Income
Housing funds and authorized issuance of multifamily housing revenue bonds.
Reauthorization of the Bond issuance and modifications to the Agency Loan related to its
subordination are necessary prior to the financial closing of this project. (Deputy City
Manager/Director of Development Services)
Page 5 - CC/RDA/HA Minutes Jnne 8, 2010
PUBLIC HEARINGS (Continued)
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.
Principal Project Coordinator Hines introduced the item.
Mayor Cox opened the public hearing. There being no members of the public who wished to
speak, Mayor Cox closed the public hearing.
ACTION: Deputy Mayor/Agency Member Ramirez moved to adopt the following Council
Resolution No. 2010-139 and Redevelopment Agency Resolution No. 2010-2026,
headings read, text waived:
A. RESOLUTION NO. 2010-139, RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA APPROVING THE ISSUANCE, SALE AND
DELIVERY OF MULTIFAMILY HOUSING REVENUE BONDS OF THE
HOUSING AUTHORITY OF THE CITY OF CHULA VISTA FOR THE
LANDINGS II APARTMENTS
B. AGENCY RESOLUTION NO. 2010-2026, RESOLUTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
AUTHORIZING THE EXECUTIVE DIRECTOR TO MODIFY SUBORDINATION
TERMS OF A LOAN AGREEMENT BY AND BETWEEN THE
REDEVELOPMENT AGENCY AND LANDINGS II, L.P. AND EXECUTE ALL
OTHER AGREEMENTS AND DOCUMENTS NECESSARY FOR THE
FINANCING OF THE LANDINGS II AFFORDABLE APARTMENT PROJECT
Council/Agency Member Thompson seconded the motion and it carved 5-0.
10. CONSIDERATION BY THE CITY COUNCIL, REDEVELOPMENT AGENCY, AND
HOUSING AUTHORITY OF THE ADOPTION OF THE OPERATING AND
CAPITAL IMPROVEMENT BUDGETS FOR THE CITY AND REDEVELOPMENT
AGENCY AND THE OPERATING BUDGET FOR THE HOUSING AUTHORITY
FOR FISCAL YEAR 2010/2011
The City Council has received and considered the City Manager's proposed operating
and capital improvement budgets for the City and the Redevelopment Agency and the
operating budget for the Housing Authority for the fiscal year ending June 30, 2011. The
City Council considered and approved the Spending Plan for the General Fund and the
All Funds Spending Plan at the April 13, 2010 and May 25, 2010 Council Meetings
respectively. The budgets submitted at this time for formal adoption and appropriation
represent the City Manager's proposed budgets, as presented in the fiscal year 2010/2011
Proposed Budget document, amended to reflect various clean up items. (Director of
Finance/Treasurer)
Page 6 - CC/RDA/IIA Minutes June 8, 2010
PUBLIC HEARINGS (Continued)
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.
City Manager Sandoval recognized Finance Director Kachadoorian who received a Certificate of
Achievement for Excellence in Financial Reporting by the Government Finance Officers
Association. Finance Director Kachadoorian then presented the Fiscal Year 2010/2011 proposed
budget, Master Fee Schedule review, Five-Year Financial Forecast, and Utility Users Tax Ballot
Measure.
Mayor Cox opened the public hearing. There being no members of the public who wished to
speak, Mayor Cox closed the public hearing.
Mayor Cox noted that the following Council/Agency Members would be abstaining from voting
on specific resolutions for Item 10, due to potential property-related conflicts of interest:
Council/Agency Member Ramirez -Item 10 B and F.
Council/Agency Member Castaneda -Item 10 C and G.
Council/Agency Member Thompson -Item ] 0 D, F, and G.
ACTION: Mayor Cox moved to adopt the following Resolution No. 2010-140, heading read,
text waived:
A. RESOLUTION NO. 2010-140, RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA ADOPTING THE OPERATING AND
CAPITAL IMPROVEMENT BUDGETS FOR THE CITY OF CHULA VISTA
EXCLUDING CAPITAL IMPROVEMENT PROJECTS LB144, PR311,
STL337, STM370, AND OP212 FOR FISCAL YEAR 2010/2011, AND
APPROPRIATING FUNDS FOR THE FISCAL YEAR ENDING JUNE 30,
2011
Deputy Mayor Ramirez seconded the motion and it tamed 5-0.
ACTION: Mayor Cox moved to adopt the following Resolution No. 2010-141, heading read,
text waived:
B. RESOLUTION NO. 2010-141, RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA ADOPTING CAPITAL IMPROVEMENT
BUDGETS FOR CAPITAL IMPROVEMENT PROJECTS LB144, PR311, AND
STL 337 FOR FISCAL YEAR 2010/2011, AND APPROPRIATING FUNDS
FOR THE FISCAL YEAR ENDING JUNE 30, 2011
Councilmember Thompson seconded the motion and it carved 4-0-1, with Deputy
Mayor Ramirez abstaining due to a potential property-related conflict of interest.
Page 7 - CC/RDA/HA Minutes June 8, 2010
PUBLIC HEARINGS (Continued)
ACTION: Mayor Cox moved to adopt the following Resolution No. 2010-142, heading read,
text waived:
C. RESOLUTION NO. 2010-142, RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA ADOPTING CAPITAL IMPROVEMENT
BUDGET FOR CAPITAL IMPROVEMENT PROJECT STM370 FOR FISCAL
YEAR 2010/2011, AND APPROPRIATING FUNDS FOR THE FISCAL YEAR
ENDING JUNE 30, 2011
Deputy Mayor Ramirez seconded the motion and it carried 4-0-1, with
Councilmember Castaneda abstaining due to a potential property-related conflict
of interest.
ACTION: Mayor Cox moved to adopt the following Resolution No. 2010-143, heading read,
text waived:
D. RESOLUTION NO. 2010-143, RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA ADOPTING THE CAPITAL IMPROVEMENT
BUDGET FOR CAPITAL IMPROVEMENT PROJECT OP212 FOR FISCAL
YEAR 2010/2011 AND APPROPRIATING FUNDS FOR THE FISCAL YEAR
ENDING JUNE 30, 2011
Deputy Mayor Ramirez seconded the motion and it carried 4-0-1, with
Councilmember Thompson abstaining due to a potential property-related conflict
of interest.
ACTION: Mayor Cox moved to adopt the following Resolution No. 2010-144, heading read,
text waived:
E. RESOLUTION NO. 2010-144, RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA AMENDING THE COMPENSATION
SCHEDULE AND CLASSIFICATION PLAN TO REFLECT THE ADDITION
OF VARIOUS POSITION TITLES AS REFLECTED IN THE FISCAL YEAR
2010/20] 1 OPERATING BUDGET
Deputy Mayor Ramirez seconded the motion and it carried 5-0.
ACTION: Agency Member Castaneda moved to adopt the following Redevelopment
Agency Resolution No. 2010-2027, heading read, text waived:
F. AGENCY RESOLUTION NO. 2010-2027, RESOLUTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGETS
FOR THE REDEVELOPMENT AGENCY FOR THE SOUTHWEST/TOWNE
CENTER II/OTAY VALLEY/ADDED AREA PROJECT AREA FOR FISCAL
YEAR 2010/2011 AND APPROPRIATING FUNDS FOR THE FISCAL YEAR
ENDING JUNE 30, 2011
Chair Cox seconded the motion and it carried 3-0-2, with Agency Members
Ramirez and Thompson abstaining.
Page 8 - CC/RDA/HA Minutes June 8, 2010
PUBLIC HEARINGS (Continued)
ACTION: Chair Cox moved to adopt the following Agency Resolution No. 2010-2028,
heading read, text waived:
G. AGENCY RESOLUTION NO. 2010-2028, RESOLUTION OF THE
REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA
ADOPTING THE OPERATING AND CAPITAL IMPROVEMENT BUDGETS
FOR THE REDEVELOPMENT AGENCY FOR TOWNE CENTER I AND THE
BAYFRONT PROJECT AREAS FOR FISCAL YEAR 2010/2011 AND
APPROPRIATING FUNDS FOR THE FISCAL YEAR ENDING JUNE 30,
2011
Agency Member Ramirez seconded the motion, and it carried 3-0-2, with Agency
Members Castaneda and Thompson abstaining.
ACTION: Chair Cox moved to adopt the following Housing Authority Resolution No. HA-
044, heading read, text waived
H. AUTHORITY RESOLUTION NO. 2010-044, RESOLUTION OF THE
HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ADOPTING
THE OPERATING BUDGET FOR THE HOUSING AUTHORITY FOR
FISCAL YEAR 2010/2011 AND APPROPRIATING FUNDS FOR THE
FISCAL YEAR ENDING JUNE 30, 2011
Authority Member Ramirez seconded the motion and it carried 5-0.
ACTION: Mayor Cox moved to place the following Ordinance on first reading, heading
read, text waived:
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA
VISTA MiJNICIPAL CODE SECTION 2.05.010 RELATING TO THE
ESTABLISHMENT OF UNCLASSIFIED POSITIONS TO ADD THE TITLE
OF LAW OFFICE MANAGER (4/STHS VOTE REQUIRED) (FIRST
READING)
Deputy Mayor Ramirez seconded the motion and it carried 5-0.
1 L CONSIDERATION OF ADOPTING AN AMENDED MASTER FEE SCHEDULE,
COST RECOVERY POLICY, AND CONTINUING THE CURRENT PREVIOUSLY
APPROVED SEWER SERVICE RATES
On January 20, 2009, the City Council endorsed the City Manager's Fiscal Health Plan
that included the review of the City's Master Fee Schedule to identify potential additional
fee revenues. Adoption of the proposed resolutions represents the first formal steps in the
implementation of the Fee Review component of the Fiscal Health Plan. (Director of
Finance/Treasurer)
Page 9 - CC/RDA/HA Minutes June 8, 2010
PUBLIC HEARINGS (Continued)
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.
City Manager Sandoval introduced the item, stating that this was the first of three phases of fee
adjustments.
Fiscal and Management Analyst Allen presented the first step in implementing the fee review
component of the Fiscal Health Plan that included a Citywide cost recovery policy, updates to
the administrative and engineering fees, and continuation of existing sewer rates.
Mayor Cox opened the public hearing.
Steven Pavka, Chula Vista resident, spoke in opposition to the proposed cost recovery policy and
associated fees.
There being no further members of the public who wished to speak, Mayor Cox closed the public
hearing.
Councilmember Bensoussan asked for clarification on false alarm fees, and she encouraged staff
to consider review of false alarm fees over a 24-month period, since the renewals were based on
a 24-month cycle. Chief Bejarano responded that staff would review the matter and provide the
Council with an update.
Councilmember Thompson spoke in support of a rolling 24-month cycle for alarm fees to help
incentivise avoidance of false alarms.
Deputy Mayor Ramirez suggested consideration by staff to create disincentives for actions that
were costly to the City, and to create incentives for people to do the right thing.
ACTION: Deputy Mayor Ramirez moved to adopt the following Resolution Nos. 2010-145
and 2010-146, Urgency Ordinance No. 3155-A, and to place the ordinance on
first reading, headings read, text waived:
A. RESOLUTION NO. 2010-145, RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA ADOPTING A CITYWIDE COST RECOVERY
POLICY
B. RESOLUTION NO. 2010-146, RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA ADOPTING AN AMENDED MASTER FEE
SCHEDULE
C. URGENCY ORDINANCE NO. 3155-A, URGENCY ORDINANCE OF THE
CITY OF CHULA VISTA CONTINUING THE CURRENT, PREVIOUSLY-
APPROVED SEWER SERVICE RATES (4/STHS VOTE REQUIRED)
Page ]0 - CC/RDA/HA Minutes June 8, 2010
PUBLIC HEARINGS (Continued)
D. ORDINANCE OF THE CITY OF CHULA VISTA CONTINUING THE
CURRENT, PREVIOUSLY-APPROVED SEWER SERVICE RATES (4/5TH
VOTE REQUIRED) (FIRST READING)
Councilmember Castaneda seconded the motion and it carried 5-0.
ACTION ITEMS
12. CONSIDERATION OF THE FIVE-YEAR FINANCIAL FORECAST REPORT AND
ADOPTION OF A RESOLUTION DECLARING A FISCAL EMERGENCY
The goal of the Five-Year Financial Forecast is to assess the City's ability over the next
five years to continue current service levels based on projected growth, preserve our
long-term fiscal health by aligning operating revenues and costs, and rebuild reserves.
The Forecast serves as a tool to identify financial trends, shortfalls, and issues so the City
can proactively address them. Over the last few years the City of Chula Vista has
experienced a precipitous decline in revenues due to the slumping economy, the housing
crisis, and the slowdown in development activity. In response, the City has made
significant program and personnel reductions, bringing expenditures in line with a lower
revenue base. Revenues have continued to decline in fiscal years 2008/2009 and
2009/2010, creating additional structural imbalances. In order to avoid additional service
impacts or further erosion of General Fund reserve levels, the City's Manger's proposed
operating budget for fiscal yeaz 2010/2011 assumes the application of one-time revenues.
The Financial Forecast recognizes the use of one-time revenues as a short-term solution
and projects continued revenue shortfalls resulting in an ongoing structural imbalance in
the General Fund in fiscal years 2011/2012 through 2014/2015. (Director of
Finance/Treasurer)
City Manager Sandoval introduced the item. Finance Director Kachadoorian then presented an
overview of the five-yeaz financial report, and summary of major assumptions in terms of
revenues and expenses.
Kevin O'Neill, Chula Vista resident, spoke in support of declaring a fiscal emergency. He stated
there was a need to seek ways to do more with less, and suggested that there be two reserve
funds, one for contingencies, and another For catastrophes.
ACTION: Deputy Mayor Ramirez moved to accept the following report and adopt Resolution
No. 2010-147, heading read, text waived:
A. FIVE-YEAR FINANCIAL FORECAST REPORT: FISCAL YEARS 2010/2011
THROUGH 2014/2015
B. RESOLUTION NO. 2010-147, RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF CHULA VISTA DECLARING A FISCAL EMERGENCY
(UNANIMOUS VOTE)
Councilmember Castaneda seconded the motion and it carried 5-0.
Page 11 - CC/RDA/HA Minutes June 8, 2010
ACTION ITEMS (Continued)
13. CONSIDERATION OF CALLING AND GIVING NOTICE OF A SPECIAL
ELECTION TO BE HELD IN SAID CITY ON TUESDAY, NOVEMBER 2, 2010, FOR
THE PURPOSE OF A MEASURE RELATING TO THE CITY'S
TELECOMMUNICATIONS USERS' TAX
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 yeaz 2008/2009, the total UUT received was approximately $7.8 million,
representing 5.6% of General Fund revenues. The current rates charged aze .00919 per
therm, .0025 per kilowatt, and 5% on telephone. There are over 150 cities in California
with a Utility Users Tax, generating an estimated $2 billion annually for city and county
governments throughout the state. City staff is recommending that the UUT on
telecommunications be updated due to a recent IRS decision, pending legal challenges, a
perceived loophole in the current ordinance and changes in technology, which have put
this funding at risk. The legal challenges pose the most serious and immediate threats to
existing UUT ordinances for cities taxing telecommunication services due to references
to the Federal Excise Tax. An adverse ruling in any of these pending actions may further
jeopazdize the City's current UUT ordinance. As a result of these existing and imminent
threats to the telecommunications portion of the City's UUT ordinance, City staff is
recommending that the Council approve submittal of a new ordinance to the voters at the
November 2, 2010 special election as a general tax. The resolution presented for the
Council's consideration would approve an ordinance to be submitted to the voters for this
purpose. (Director ofFinance/Treasurer)
City Manager Sandoval introduced the item and stated that the matter was addressed before the
Council over yeaz ago, with concerns raised by Council and the industry, but that since then, all
concerns had been addressed. Finance Director Kachadoorian then presented an overview of the
Utility Users' Tax (UUT), and a proposed update to secure existing UUT revenue.
Sam Attisha, San Diego resident, representing Cox Communications, stated that he received
inadequate notice about the item and that his previously stated concerns had not been addressed.
He requested an opportunity to discuss the matter with staff and other members of the industry.
Ignacio De La Torre, Chula Vista resident, representing AT&T, stated there was a lack of notice
for the item. He asked the Council to grant an extension.
Larry Breitfelder, Chula Vista resident, suggested the Council conduct a series of public
workshops on the matter prior to any action, and that any decisions by the Council be postponed
until after the June 8, 2010 election.
Ed Herrera, Chula Vista resident, representing the Chula Vista Civic Association, spoke in
opposition to the proposed resolution and suggested that the issue be opened for public review.
Page 12 - CC/RDA/HA Minutes June 8, 2010
ACTION ITEMS (Continued)
Lisa Cohen, Chula Vista resident, representing the Chula Vista Chamber of Commerce, asked for
Council consideration to postpone the matter in order to allow review of the proposed legislation
to determine its impact on the community and businesses.
Director of Conservation and Environmental Services Meacham responded to concerns raised by
some of the speakers. He noted that all issues raised in 2008 had been addressed.
Mayor Cox announced a meeting recess at 6:14 p.m. The meeting reconvened at 6:33 p.m. with
all members present.
Discussion ensued about the proposed ballot language.
ACTION: Deputy Mayor Ramirez moved to adopt the following Resolution No. 2010-148,
heading read, text waived:
RESOLUTION NO. 2010-148, RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CHULA VISTA CALLING AND GIVING NOTICE OF A SPECIAL
ELECTION TO BE HELD IN SAID CITY ON TUESDAY, NOVEMBER 2, 2010, FOR
THE PURPOSE OF SUBMITTING TO THE QUALIFIED ELECTORS OF THE CITY,
A MEASURE RELATING TO THE CITY'S TELECOMMUNICATIONS USERS'
TAX; CONSOLIDATING THE ELECTION WITH THE STATEWIDE ELECTION;
REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN DIEGO
PERMIT THE REGISTRAR OF VOTERS TO CONDUCT SUCH ELECTION;
AUTHORIZING THE CITY CLERK OR HER DULY AUTHORIZED AGENTS TO
CARRY OUT THE NECESSARY PROCEDURES FOR SUCH ELECTION; AND
DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS
OF THE MEASURE (4/STHS VOTE REQUIRED)
Councilmember Castaneda seconded the motion and it carried 5-0.
Mayor Cox suggested that industry representatives meet with staff to discuss the matter, and if
that resulted in providing an update to the Council, that such an update be placed on a Council
Agenda prior to July 31, 2010.
OTHER BUSINESS
14. CITY MANAGER/EXECUTIVEbIRECTOR'S REPORTS
There were none.
15. MAYOR/CHAIR'S REPORTS
Mayor Cox announced that the City's Recreation Department was recently recognized by
"Google" as a "favorite place," in particular, Parkway Community Center and Walk
Chula Vista. She noted that the City would be accepting applications for the City's
Youth Action Council through June 30, 2010. She also announced the "Save a Life,
Adopt a Cat" campaign at the Animal Care Facility through June 30, 2010.
Page 13 - CC/RDA/HA Minutes June 8, 2010
16. COUNCIL/AGENCY MEMBERS' COMMENTS
Councilmember Castaneda encouraged everyone to vote.
Councilmember Bensoussan announced the recent ribbon cutting event for new
equestrian trails at Otay Valley Regional Pazk. She announced the upcoming San Diego
National Wildlife Refuge complex groundbreaking event on Jun 15, 2010 at 11:00 a.m. at
the Chula Vista Nature Center Sweetwater Marsh. She also announced that the Chula
Vista Police Department would be hosting a fundraising event for the Shop with A Cop
program on June 9, 2010 at 11:00 a.m.
Councilmember Castaneda left the dais at 6:46 pm.
ADJOURNMENT
At 6:47 p.m., Mayor Cox adjourned the meeting in memory of James Hobel, former Chula Vista
Councilmember, to the regular meeting of the City Council and Redevelopment Agency on June
15, 2010, at 4:00 p.m. in the Council Chambers.
~,o-k-~ ~,~~
Donna R. Noms, CMC, City Clerk
Page 14 - CC/RDA/HA Miw[es June 8, 2010