City Council Minutes - 04/17/2007back
REGULAR MEETING OF THECITY COUNCIL OF THE
CITY OF CORONADOCoronado City Hall
1825 Strand Way
Coronado, CA 92118
Tuesday, April 17, 2007
Mayor Smisek called the meeting to order at 3:00 p.m.
1. ROLL CALL:
Present: Councilmembers Monroe, Ovrom, Tanaka and Mayor Smisek
Absent: Councilmember Downey
Also Present: City Manager Mark Ochenduszko
City Attorney Morgan Foley
City Clerk Linda Hascup
2. INVOCATION AND PLEDGE OF ALLEGIANCE. Floyd Ross provided the invocation and Mayor Smisek led the Pledge of Allegiance.
3. MINUTES: Approval of the minutes of the Regular Meeting of April 3, 2007, were approved as submitted. The reading of the minutes in their entirety was unanimously waived.
MSUC (Tanaka/Ovrom) moved that the City Council approve minutes of the Regular Meeting of April 3, 2007, a copy having been provided Council prior to the meeting, as submitted.
AYES: Monroe, Ovrom, Tanaka and Smisek
4. CEREMONIAL PRESENTATIONS:
4a. Proclamation: Gail Brydges Day. Mayor Smisek presented the proclamation to Gail Brydges in honor of her retirement and many years of service to the City of Coronado. Nancy Burt was also present for the proclamation.
4b. Proclamation: National Volunteer Week. Mayor Smisek presented the proclamation to Senior Patrol Officer Volunteers.
5. CONSENT CALENDAR: The City Council approved, adopted and/or accepted as one item of business Consent Agenda Items 5a through 5g with the exception of 5f and the addition of Item 11b.
MSUC (Tanaka/Monroe) moved that the City Council approve the Consent Calendar Items 5a through 5g with the exception of Item 5f and the addition of Item 11b - Approval of the Lifeguard Public Safety Service Building and Authorization to File CEQA Notice of Determination (IS 2-06, City of Coronado).
AYES: Monroe, Ovrom, Tanaka, and Smisek
5a. Approval of Reading by Title and Waiver of Reading in Full of Ordinances on this Agenda. The City Council waived the reading of the full text and approved the reading of the title only.
5b. Approval of Warrants. The City Council ratified payment of warrants Nos. 10057261 thru 10057454 audited and approved by the Audit Committee, provided there are sufficient funds on hand. The City Council approved the warrants.
5c. Adoption of a Resolution Delegating Authority to the City Manager to Settle Specified Workers' Compensation and Public Liability Claims. Over time, the costs of claims for workers' compensation have increased, due in part to increases in medical costs as well as statutory and regulatory mandates. These increases are such that many relatively minor claims now exceed the $10,000 threshold. This is especially true in light of changes to the workers' compensation system whereby the liability is determined by legal presumptions and the amount of damages is determined by statutory and regulatory formulas.
In order to continue to allow for the most efficient use of resources staff recommends that the City Council increase the amount of settlement authority delegated for workers' compensation claims from $10,000 to $20,000. This will permit administrative settlement without the need for direct City Council approval. Staff recommends that administrative settlement authority for public liability claims remain at $10,000. Finally, staff recommends that the authority be vested in the City Manager, who may then delegate the authority as appropriate. Staff is not seeking any change in the settlement authority amount for liability claims. The City Council adopted A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CORONADO DELEGATING AUTHORITY TO THE CITY MANAGER TO SETTLE SPECIFIED WORKERS' COMPENSATION AND PUBLIC LIABILITY CLAIMS. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by Council as RESOLUTION NO. 8211.
5d. Request for Authorization to Allow the City Manager to Execute a Memorandum of Agreement (MOA) with the Department of the Navy and a Cooperative Agreement with the State of California Department of Transportation Regarding Participation in the Design, Construction and Maintenance of a Traffic Signal at the Intersection of Third Street and Alameda Boulevard. City staff has worked with officials from both the Navy and Caltrans to create agreements whereby the traffic signal at Third and Alameda can be included as part of a larger project which will include the traffic signal at Fourth and Alameda, along with drainage improvements at the intersection of Third and Alameda. The MOU defines the roles and responsibilities of the City and Navy in regard to the construction of the signal at Third and Alameda. Similarly, the Cooperative Agreement defines the roles and responsibilities of Caltrans and the City in connection with the signal at Third and Alameda. The City shall be the lead agency in the design and construction of the traffic signal, and the installation of the new signal will be combined with the previously approved signal at Fourth and Alameda. The City Council authorized the City Manager to execute final versions of the drafts of an MOU with the Department of the Navy and a Cooperative Agreement with the State of California Department of Transportation for their participation in the design, construction and maintenance of a traffic signal at the intersection of Third Street and Alameda Boulevard. The City Council also authorized the City Manager to make minor changes to the drafts (if any) that may be required to finalize the agreements.
5e. Validation of Original Determination of Wet Well Re-Lining Emergency Situation at Transbay Pump Station Project. The Transbay Sanitary Sewer Force Main Project is scheduled to be substantially complete by mid April. Staff intends to have an emergency construction contract specifically referencing the wet well re-lining work in place with Ortiz Corporation by mid April as well. This timing will allow Ortiz to remain onsite, utilize existing construction sound fencing, and complete the wet well re-lining work by mid May. An emergency contract will allow the City to avoid costly contractor remobilization into a construction-sensitive work area (the Coronado Ferry Landing Marketplace) and a potential partial or total failure of the pump station.
The emergency project is to be awarded under a negotiated contract with Ortiz Corporation. The use of an emergency contract for this particular project is appropriate for several reasons. Recent inspection of the Transbay Pump Station wet and dry wells indicate that the wet well lining is failing. A fully open bid process will significantly extend the amount of time during which a major failure might occur, potentially resulting in the full-scale shutdown of the Transbay Pump Station. It should be noted that the Transbay Station is the collection point for all sewage generated by the City of Coronado and the local Navy facilities. The Transbay Station is responsible for pumping all sewage across the bay. A full-scale shutdown in excess of six hours would have dire environmental, economic, and political ramifications. The location of the Transbay Pump Station within the heart of the Coronado Ferry Landing retail space magnifies the significant negative noise impacts this construction will certainly cause. Fortunately, the expected early substantial completion date of the Transbay Force Main project will enable the emergency project to be completed prior to the peak retail shopping season.
A fully open bid process will not allow the beginning of construction operations until late May at the earliest, by which time the condition of the wet well lining will have further deteriorated. The remobilization of contractor forces and equipment and the execution of contract work during the Ferry Landing's peak shopping season will be extremely unpalatable to a business community that has already had to deal with significant construction-related impacts due to the ongoing Transbay Force Main project. The use of a negotiated no-bid contract with a highly recommended local contractor provides the best method to implement immediate necessary infrastructure improvements while minimizing the negative construction impacts to the surrounding community and avoiding the potential failure of the pump station. The City Council validated the original determination that an emergency situation exists at the Transbay Pump Station project.
5f. Second Reading for Adoption of an Ordinance of the City of Coronado, California, Amending Subsections B and C of Section 90.10.100 of the Coronado Municipal Code Regarding the Coronado Cays Specific Plan Side Yard Setback Requirements for Detached Single Family Dwellings in the Village Residence Zones in the Coronado Cays. Councilmember Monroe wanted to provide an opportunity for the members of the public who were present to speak on this item.
City Manager Mark Ochenduszko recused himself due to the location of property he owns.
Dr. Vernon Fry, 25 St. Christopher Lane, requested inclusion of a letter sent by email into the record. He thinks Mayor Smisek and the City Council have this issue backwards and asked what good it does to decrease the side yard and expand the building pad when second stories are prohibited? He does not feel that this issue can be ignored and that there need to be hearings regarding whether the City Council can make this change this not in the manner it is now doing. He referred to discussion of what the intent of the Council was when it approved the Cays Specific Plan ordinance and a letter from Mr. Kranz at that time. He suggested that the City Council must present evidence that there was any other intention than what was written.
Lou Miliotti, 30 St. Christopher's Lane, stated his strong objections to the City Council adopting a change to the Coronado Cays Specific Plan that will basically reduce space between homes and allow the square foot of the homes to be significantly increased. This bothers him because this is the first step in which the City Council is actively promoting building development in a planned community without having the support of the majority of the Cays homeowners. He said the whole process was tainted and improper from the start. The City Council cannot do anything about the dysfunctional Board of Directors who exceeded their common area authority by forwarding the change to the Planning Commission and then to the City Council after the Planning Commission rejected it by a vote of 3-0. However, the City Council can and must do something to correct discrepancies in City organizations that include the following: 1) improper, incorrect, and lack of public notification to Cays homeowners on this change; and 2) the invalid, verbal interpretation of a written ordinance by Mr. Tony Pena and Mr. Peter Fait of City staff. The written ordinance states, "Any modification, addition, reconstruction, or replacement of a home constructed using the special side yard may be expanded only on the first floor." Mr. Pena and Mr. Fait's verbal interpretation of "only on the first floor" is that second story modifications are allowed. He cannot understand how any member of the City Council, except for Councilmember Tanaka, has accepted this verbal interpretation. A City should be run on written ordinances and not verbal interpretation, especially with regard to land use issues. He recommends that the City Council shelve the proposed change until it is supported by a majority of homeowners and shelve the verbal interpretation of the written ordinance until such time that the City staff can provide written evidence to support their interpretation.
Ella Croshier, 25 Blue Anchor Cay Road, read a letter she provided for distribution to the Council, which was retained for the record in which she provided testimony against approval of the Ordinance.
Councilmember Monroe voiced his amazement at the idea that people will speak poorly of the people who they are looking to for support. Mrs. Croshier's comments were not an accurate reflection of his comments at the previous meeting. She has no basis in legal fact for many of her conclusions. The SUP and the Specific Plan are City documents, not Cays homeowners' documents, and therefore they don't come under the rule of Cays homeowner documents like CC&Rs or Village rules. Mr. Monroe said that and Vernon Fry have been struggling with the words in paragraph C2, which are not perfect and are confusing. He stated for the record what he understands to be the intent of the paragraphs. Specifically, the words state "Any modification, addition, reconstruction or replacement of a home constructed utilizing the special side yard may be expanded only on the first floor, and only%u2026" It is the introduction of the phrase 'of a home constructed' that causes confusion. It seems that the end of this phrase, 'utilizing the special side yard' should be attached to the first part of the sentence so that it would read, "Any first story modification, addition, reconstruction or replacement%u2026" that uses the zero lot line or the special side yard may be only done on the first floor. Therefore, if you use the special side yard, which means a zero lot line, one can only expand the addition on the first floor. Second floor additions are permitted with a 5' setback from the zero lot line. That has been explained to the City Council and that has been the intent of the staff and CCHOA for years. It has nothing to do with the home constructed using the zero lot line, but the additions using the zero lot line are only permitted on the first floor. That is his reading of it. Captain Miliotti indicates that this is a major land use change. Mr. Monroe disagrees with that. He thinks 30 years of approvals create a clear record of intent. There are houses built on a zero lot line throughout the Cays that have expanded and they have expanded on the second floor. That has been the practice and he feels it is the intent of this paragraph that is admittedly not perfectly written.
MSC (Monroe/Smisek) moved that the City Council adopt AN ORDINANCE OF THE CITY OF CORONADO, CALIFORNIA, AMENDING SUBSECTIONS B AND C OF SECTION 90.10.100 OF THE CORONADO MUNICIPAL CODE REGARDING THE CORONADO CAYS SPECIFIC PLAN SIDE YARD SETBACK REQUIREMENTS FOR DETACHED SINGLE FAMILY DWELLINGS IN THE VILLAGE RESIDENCE ZONES IN THE CORONADO CAYS. The Ordinance, having been placed on First Reading on April 3, 2007, was read by Title, the reading in its entirety unanimously waived and adopted by Council as ORDINANCE NO. 1987.
AYES: Monroe, Ovrom and Smisek
5g. Approval of Appropriation of $17,000 to Purchase Replacement Police Department and City Hall Computer File Servers. File servers are network computers that house applications and computer files accessed by entire departments. Normally, file servers are scheduled for replacement every three years and the Information Systems staff anticipated making these two replacements in FY 2007-08. These recent failures accelerated the schedule and required immediate purchase of the equipment. All scheduled computer replacements for FY 2006-07 have already been made and sufficient savings in other division accounts are not available to cover this cost growth, requiring an additional appropriation. Over the past several years, there have been gradual increases in the inventory of computer equipment throughout the City, which has impacted the budget for computer replacement. The City Council approved an appropriation of $17,000 to the Information Systems Budget (100145-9043 Computer Replacement Account) in order to purchase a computer file server in the Police Department and in City Hall.
6. ORAL COMMUNICATIONS:
a. Arthur Jones, 1212 First Street, recognized Toni Gaylord regarding her retirement as Executive Director of Coronado MainStreet and introduced Rita Sarich who has agreed to follow in Toni's footsteps and accepted the position.
b. Rita Sarich, Executive Director, Coronado MainStreet, said she appreciates the opportunity to continue the good work by Toni Gaylord and MainStreet. She reminded everyone about MotorCars on MainStreet that will be held on Sunday, April 29 in conjunction with all the Flower Show activities.
c. Susan Heavilin, 1144 Isabella Avenue, commented that she and several other people are angry and upset about what happened on the beach this past week. The refuse that was removed from underneath the old lifeguard tower and was piled on the beach under the sand. Then in speaking with people who were involved with the lifeguard tower when it was condemned she learned that the sand had been contaminated from the plumbing that was bad. There was also a lot of beer glass from after lifeguard hours and shards of glass were sticking out and there were children playing on that sand dune. They wanted it fenced to protect the public. They contacted the City Manager who got back to them after a few days and reported that it would be cleaned out. The next day she noticed that the whole pile full of garbage, cement, tile, feces was being spread over the beach by a bull dozer. She went out and picked up ten pieces of glass immediately. She knows that it is being worked on and the sand is being sifted but if had just been left in a pile and sorted rather than spread it all over the beach that would have been better. She said that this makes the City liable and she doesn't think it was a smart idea. The other thing she saw happening today was the bulldozer was out there again chopping up sand dunes. She was told it was to cover up kelp, but these were covered with beautiful blooming ice plant. Now there is no ice plant. The City Council ran on the premise of preserving the village. This is not what should be done to preserve the village.
d. Jerry Boone, a resident of the Glorietta Bay Marina, is an airline pilot out on medical leave with limited resources. He received a notice from the Marina that his rent is going to almost double beginning next month, reportedly because of all the increased amenities and he doesn't even have 24 hour showers. There is only one restroom that they finally have 24 hours access to on the premises. There are no amenities when compared to other marinas in the area and there are no plans for equivalent amenities to warrant the price increase. He has written a letter that he requested be submitted along with another one from one of the tenants who is out of the country. He feels there was zero cooperation and they are living in a mess down there. He requested that the City Council take this into consideration before making its final decision to increase their rent.
e. Pete Fagan, 379 F Avenue, said he concurs with Ms. Heavelin's comments about the destruction of the beach and asked that there be some hands-on leadership to take over that project. He also addressed the quantity of money that is being spent by the City to sue itself over Prop J. Aside from the policy decision in doing so, he continues to be mystified at the costs involved. He has reviewed reams of documents requested under the California Public Records Act in an attempt to answer the question. He can only address one of the many issues he discovered during this period of time. Among the billings from the part time City Attorney he revealed that, last fiscal year, his firm billed and was paid over $185,000 for these part time services. Last month he billed over $34,000. Annualized, that would be over $400,000. In trying to see what services the City got for that sum of money he found some serious discrepancies in the billings. He provided a copy of a portion of the contract between the City Attorney and the City of Coronado and he referred to paragraph 2.3 which says that, "Absent special circumstances and a prior written approval by the City, the City is not obligated to pay for the following: %u2026when more than one attorney attends any court hearing." He stated that more than one attorney has been attending hearings and has been billing for such, and the City has paid. For a City that prides itself on being fiscally conservative his question is why would the City pay for services they are not obligated to pay? Mr. Fagan commented that even more disturbing is the failure to comply with paragraph 2.2.4 which reads, "For litigation matters, each invoice must include the total amount owed, invoiced, and paid to date. That total should provide, at a glance, the total fees and costs incurred to date on the case. This will facilitate the City's approach of cost effective litigation management. The firm must provide the total-to-date information on the invoice, transmittal letter or other document submitted with the invoice. The City will not pay any amount unless the totals to date are provided." In all of the billings he has reviewed, not one of them had a total for the matter. It makes it very difficult to find out how much the City has spent on issues like preservation of the beach, Prop J, or any of the other numerous matters that have come up through litigation. How can the City manage and control the cost of litigation if they don't even know how much they are spending? It appears that the City has paid a lot of money that needs to be recouped. Mr. Fagan believes that the taxpayers demand more responsibility and more accountability and would ask that a report and an investigation be conducted.
f. Ed Sack, 1780 Avenida del Mundo, #404, said he has had his small boat in the Glorietta Bay Marina for approximately six years. Prior to that he has had boats in various marinas throughout the country for over five decades. He suggested that, instead of the plan to phase out live aboard permissions when current live aboards leave the marina, that there be a limit established for authorized live aboards at the same level as exists before the marina reconstruction begins, which would mean about nine or ten live aboards. His reasoning is based on his personal experience that a certain number of authorized live aboards helps protect the property and life of all who keep their boats at a marina. Although he is not a live aboard these days, he has first hand experience with this when his wife and he lived in Huntington Harbor, New York. There was theft and vandalism being caused by people arriving by water late at night in the marina in that harbor. However, when they were aboard during the summer months they could turn on their mast spot lights and when they heard those vandals trying to board other boats that inevitably led to those vandals leaving the area rapidly for fear they would call the police.
g. City Manager Mark Ochenduszko spoke to clarify the beach construction and trash issue. He explained that the City is sympathetic and understands the concerns Susan Heavelin has raised related to the construction on the beach. He acknowledged that any time one undertakes a construction project, and Coronado has certainly taken on more than its share in the last several years, that it is very unsettling and creates a great deal of upset in the community. This construction is one that the City pays particularly close attention to and is one that is certainly unsettling to the community because it is on the beach. It is the construction of a new lifeguard tower which is sorely needed to provide for the public safety at the beach. Ms. Heavelin referred to a 'trash dump' that is actually a sand mound that was removed as the lifeguard tower was removed and is primarily made up of sand. It was brought to his attention that the sand mound had some glass shards in it the Friday before Easter. He personally went out and visited the site and did find that there were some glass shards in that sand mound along with some rocks, some concrete pieces, and some remnants of old sand bags that were used to stabilize the tower when it was almost lost in a major storm in the early 1980s. That storm led, in fact, to the condemnation of the tower because it was structurally unsound. The City asked Public Services employees to get immediately out there. That afternoon they went through and hand picked the glass shards out of the sand, one at the time. The City has since had that sand mound spread over an area on the beach so that all the concrete pieces could be removed. The remains of the sand bags were removed as well as large stone pieces. The sand was run through the City's sanitizer after the hand picking and he believes the sand is sanitary at this point. Preservation of sand on the beach and sand replenishment is a very important. The City believes the sand has been cleaned and that the situation is now safe.
7. CITY MANAGER:
7a. Update on Council Directed Actions and Citizen Inquiries. No report.
8. PUBLIC HEARINGS: None.
9. ADMINISTRATIVE HEARINGS: None.
10. COMMISSION AND COMMITTEE REPORTS:
10a. Report from the Port Commissioner Concerning Port Activities. Port Commissioner Robert Spane reported on topics on the Port Commission agendas from last week and the upcoming Port meeting in May.
- The Port is trying to understand its legal options and will hold a hearing regarding 501/505 First Street where the beach rip rap construction took place without a permit. One of the ideas was to red tag the construction which would stop it but they are not Port permits. He thinks that the power and final judgment will come from the Regional Water Quality Control Board. The Port thinks that the property owners should put back the rip rap and put the foundation away from Port tidelands. Councilmember Monroe if the City permitted the work. Admiral Spane explained that the City permitted the building of the house, not the changes on the beach, but the way to get people's attention would be to stop the construction. The Port was looking for some way to take action. Mr. Monroe suggested that the Port could ask the City to look into it.
- The first Viejas concert was held on April 4. The contract said 95db for sound, and the sound was measured at 95 db a couple of times but not over. That generated a db level in the 50s and 60s in Coronado. There were several complaints with the major complaint name on the list as the Fields. At the moment, the concert is in compliance with the contract. There is enough interest in what is going on there on both sides that if the sound level is too high there can certainly be an argument made that it has to be lower. The contract is pretty tight. If it is violated the penalty is pretty clear. Councilmember Ovrom for the hotline number. Admiral Spane responded that the number is (619) 400-4750.
- The Port turned down a request for an overnight camp in the Port tidelands for the Fleet Four Hobycat Regatta, which is a sailing outing that has been going on for several years but has camped elsewhere.
- Next month four of five topics regarding the Coronado Yacht Club will be on the agenda.
The A8 anchorage will come before the Board again. Coronado should be interested because one of the proposals to remove the A8 anchorage puts the boaters south of the Coronado Bridge. He thinks that has been solved, but it should still be watched.
- The Port and several other organizations are looking for an artistic symbol of the City. Some people are thinking that the symbol should be the Coronado Bridge lit up in some manner. The Port staff is ready to come and brief the Coronado City government on what this means. He recommends that Coronado get involved in this. His personal view is that it is different than the Brooklyn Bridge and the Oakland Bridge in the sense that it ends in a residential area, not one city to another city, and therefore it might not be appropriate to be all lit up.
11. CITY COUNCIL BUSINESS:
11a. Council Reports on Inter-Agency Committee and Board Assignments.
Councilmember Ovrom attended meetings of the Tunnel Action Team, the Wastewater Metro Commission, a Special City Council meeting, a San Diego Military Affairs Advisory Council monthly board meeting, the Tunnel Commission, dedicated an art project with Mayor Smisek at Tidelands Park, a meeting of the PUC Advisory Commission, and the luncheon for Gail Brydges' retirement.
Councilmember Tanaka attended a CIP budget meeting with Mayor Smisek, briefed the Chamber Board on issues facing the City, and attended the Special City Council meeting to address a house in the 900 block of J Avenue.
Councilmember Monroe reported on a Bayshore Bikeway meeting that was chaired by Supervisor Cox, attended a SANDAG Transportation meeting where there was a briefing on childhood obesity, a meeting of the Full Access Coordination Action Team, MTS Board and Finance meetings, the Special City Council meeting, met with the City Manager and Assistant City Manager, Frank Urtasen, and representatives from SDG&E regarding SDG&E project delays.
Mayor Smisek met with the Tunnel Action Team to report on his Washington D.C. trip and to work on a response to Buddy Penn, updated the Optomist Club on City activities, attended a CIP Subcommittee meeting with Councilmember Tanaka on the 07/08 - 08/09 budget and out year updates, a meeting of the Library Board, a Special City Council meeting, dedicated two benches in Tidelands Park with Councilmember Ovrom in concert with the Port Authority and the Art Subcommittee, and attended a Navy Complexes meeting regarding their upcoming construction projects. At the next City Council meeting will be a presentation on the new traffic pattern that will be developing when the new Third Street Gate opens. It will then be circulated throughout the community. The gate will be opening in June for preliminary use and the final opening will be in August. One of the dedications that is going to occur will be the naming of the gate and boulevard for Admiral Stockdale. He also attended Gail Brydges retirement ceremony.
11b. Approval of the Lifeguard Public Safety Service Building and Authorization to File CEQA Notice of Determination (IS 2-06, City of Coronado). The purposes of an EIR as defined by CEQA are to provide public agencies and the public in general with detailed information about the effect which a proposed project is likely to have on the environment; to list ways in which the significant effects of such a project might be minimized or avoided; and to indicate alternatives to such a project. The "Final Environmental Impact Report (SCH#2006051086) Lifeguard Public Safety Service Building, Coronado California" details the project description, environmental analysis performed for the City, and project mitigations. Comments received from the public or public entities on the adequacy of the draft EIR and responses to these comments were added to the front of the draft EIR along with a "Mitigation Monitoring and Reporting Program" to compose the Final EIR which has been certified by the City Council.
CEQA Guidelines Section 15075 states (in part)' "that the lead agency shall file a notice of determination within five working days after deciding to carry out or approve the project%u2026The filing of the notice of determination%u2026for local agencies, start a 30-day statute of limitation on court challenges to the approval under CEQA%u2026" If the NOD is not filed within five (5) working days the statute of limitations does not begin to run until it is actually filed with the county clerk. If it is never filed the statute of limitations is 180 days following the approval of the EIR. Under Consent, the City Council approved the Lifeguard Public Safety Service Building and authorized the filing of the CEQA Notice of Determination for the project.
12. CITY ATTORNEY: No report.
13. COMMUNICATIONS - WRITTEN: None.
The City Council recessed to Closed Session at 4:04 p.m.
14. CLOSED SESSION:
14 a. CLOSED SESSION: CONFERENCE WITH LEGAL COUNSEL
AUTHORITY: Government Code §54956.9(a)
NAME OF CASE: Workers' Compensation Appeals Board Case Number: TBD
14 b. CLOSED SESSION: CONFERENCE WITH LEGAL COUNSEL
AUTHORITY: Government Code §54956.9
NAME OF CASE: Coronado Cays Homeowners Association v City of Coronado
Case No. GIC 872917
The Regular Meeting resumed at 4:37 p.m.
City Attorney Morgan Foley announced that on Item 14a direction was given to the City's legal counsel. On Item 14b, City Manager Mark Ochenduszko and Councilmember Monroe were disqualified due to property holdings and left the closed session prior to discussion. The City Council gave direction to legal counsel on this item.
15. ADJOURNMENT: The meeting was adjourned at 4:39 p.m.
Approved: May 1, 2007
Tom Smisek, Mayor
City of Coronado
Linda K. Hascup
MINUTES OF THE
COMMUNITY DEVELOPMENT AGENCYCITY OF CORONADO City Hall Council Chambers Coronado, CA 92118
Tuesday, April 17, 2007
The Community Development Agency regular meeting was called to order at 4:04 p.m.
1. ROLL CALL:
Present: Members Monroe, Ovrom, Tanaka and Smisek
Absent: Agency Member Downey
Also Present: Executive Director Mark Ochenduszko
Agency Attorney Morgan Foley
Agency Secretary Linda Hascup
2. MINUTES: The minutes of the Regular Meeting of April 3, 2007, copies having been delivered to each member of the Community Development Agency prior to the meeting, the reading in its entirety unanimously waived, were approved as amended.
3. ORAL COMMUNICATIONS: None.
a. Executive Director: No written report.
b. Agency Secretary: No written report.
c. Agency Treasurer: Approval of Warrants - The Agency approved Warrants No. 90003312 through 90003327 as audited and approved by the Audit Committee, provided there are sufficient funds on hand.
d. Agency Attorney: No written report.
5. AGENCY BUSINESS:
5a. Consideration of Entering into an Agreement with a Developer to Rehabilitate 525 Orange Avenue for Affordable Housing. This property was acquired by the CDA to provide an opportunity for the Agency to fulfill its obligations to provide affordable housing. State law requires the Agency to produce affordable housing for specific income groups and to expend its resources on affordable housing in proportion to the community need. State law also determines the number of affordable units the Agency is required to provide. The Agency's obligations are not static but change over time. To date, the Agency has provided 125 affordable units through a variety of means. Currently, the Agency is obligated to provide a total of 138 affordable units, half of which must be created through new construction or substantial rehabilitation of existing units. The CDA's current deficit of affordable units is 13. The CDA's affordable housing inventory is also currently deficient in units created through new construction/substantial rehabilitation. The property at 525 Orange Avenue was acquired because it presented a good opportunity to substantially rehabilitate the existing structures, contributing to both goals of providing affordable housing and to increasing the proportion of units created through construction/substantial rehabilitation.
The property was occupied at the time of acquisition. Since then, a Relocation Plan was prepared, approved and implemented. The property is now vacant and ready for rehabilitation. Additionally, construction plans have been prepared and the design was reviewed and approved by the City's Design Review Commission. The plans are complete and ready for issuance of building permits.
Cost estimates that have been prepared based on the plans indicate that the construction alone will cost $1.7 million. Contingencies, fees and project management costs will bring the total costs to approximately $2.1 million. Because these costs are in excess of what had been considered available for this project, staff explored other sources of funding for completing the project.
On April 5, 2007, the Citizens' Advisory Committee considered this item and recommended that the Agency Board authorize negotiations with SDIHF to rehabilitate the existing buildings for affordable housing at 525 Orange Avenue.
MSUC (Tanaka/Monroe) approved that the Agency Board direct staff to pursue an agreement with San Diego Interfaith Housing Foundation (SDIHF), authorize negotiations, and prepare a Disposition and Development Agreement for future Agency consideration to rehabilitate and operate the existing 16 units at 525 Orange Avenue for affordable housing.
AYES: Monroe, Ovrom, Tanaka, and Smisek
5b. Resolution Approving the Slip Fee Rate Structure and Establishing Live-Aboard Regulations for Glorietta Bay Marina. On April 3, 2007, CDA staff provided a multi-year comprehensive financial analysis of the Restaurant/Marina Fund through the Year 2036, based on implementing the proposed adjustment to the current slip fee rate structure and subsequent annual CPI adjustments beginning July 1, 2009. The financial model assumed a 3% inflation factor for both revenue and operating expenses; and a 95% occupancy rate of the marina slips. The amortization of the rebuilt marina docks was flat lined with a 30 year life. The model showed the net annual operating results and suggested a readjustment of the slip fee rate structure to the current market rates in FY 2012-13 (along with the CPI) might be advisable upon completion of the Dock C renovation. Nevertheless, the financial model also showed that, over the life of the lease, the rate structure would provide for the eventual replacement of the docks, pay all debt service, including the original $3.2 million loan, and provide revenue to the City's General Fund in Fiscal Year 2023-24.
Based on the direction by the CDA Board to exclude an annual CPI adjustment, a financial analysis is being provided through Fiscal Year 2012-13 one year after Dock C will be reconstructed. The models reflect the original proposal and subsequent CDA decision illustrating the difference in the resulting annual cash flow, ending fund balance and undesignated reserves. The model assumes a 5% readjustment of slip fee rates based on bi-annual market surveys implemented in Years 2009-10 and 2011-12, with no intervening CPI adjustment.
MSUC (Ovrom/Tanaka) approved the resolution. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by the Agency as RESOLUTION NO. CDA-187.
AYES: Monroe, Ovrom, Tanaka, and Smisek
The Agency recessed into Closed Session at 4:14 p.m.
6. CLOSED SESSION:
6a. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
AUTHORITY: Government Code 54956.8
PROPERTY: APN 536-381-27, commonly known as 525 Orange Avenue, Coronado
AGENCY NEGOTIATORS: Mark Ochenduszko, Executive Director; Jim Benson, Assistant City Manager; Rachel Hurst, Assistant Executive Director; Morgan Foley, Agency Attorney
NEGOTIATING PARTIES: Napolitano Family LTD Partnership
UNDER NEGOTIATIONS: Price and Terms
The regular meeting resumed at 4:39pm.
The Agency Attorney reported that direction was given to the City's negotiator.
7. ADJOURNMENT: The Agency adjourned at 4:40 p.m.
Approved: May 1, 2007
Tom Smisek, Chair
Linda K. Hascup, Agency Secretary