City Council Minutes - 06/19/2007

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Date of Record: 2007-06-19
                                                                                                    MINUTES OF A

REGULAR MEETING OF THE

                                                                                             CITY COUNCIL OF THE

CITY OF CORONADO

                                                                                                    Coronado City Hall

1825 Strand Way

Coronado, CA 92118

Tuesday, June 19, 2007

Mayor Smisek called the meeting to order at 3:00 p.m.

1. ROLL CALL:

Present: Councilmembers Downey, Monroe, Ovrom, Tanaka and

Mayor Smisek

Absent: None

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 Special Meeting of May 22, 2007 and the Regular Meeting of June 5, 2007 were approved as amended. The reading of the minutes in their entirety was unanimously waived.

MSUC (Tanaka/Downey) moved that the City Council approve minutes of the Special Meeting of May 22, 2007 and the Regular Meeting of June 5, 2007, a copy having been provided Council prior to the meeting, as amended.

AYES: Downey, Monroe, Ovrom, Tanaka, and Smisek

NAYS: None

ABSENT: None

4. CEREMONIAL PRESENTATIONS: None.

5. CONSENT CALENDAR: The City Council approved, adopted and/or accepted as one item of business Consent Agenda Items 5a through 5l.

MSUC (Downey/Tanaka) moved that the City Council approve the Consent Calendar Items 5a through 5l.

AYES: Downey, Monroe, Ovrom, Tanaka, and Smisek

NAYS: None

ABSENT: None

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. 10058494 thru 10058737 audited and approved by the Audit Committee, provided there are sufficient funds on hand.

5c. Adoption of Appropriation Resolution Approving the FY 2007-08 Financial Plan Including Operating Budget and Capital Improvement Program. The implementing resolution for the FY 2007-08 budget contains adjustments to the operating budget to reflect the additional funding directions for the Community Groups from the May 22, 2007 meeting. Community Group funding is budgeted at $901,701, which is $27,612 greater than what was presented at the May 22 meeting. The second year of Community Group funding is budgeted at 2% above FY 2007-08 subject to review in the next budget cycle.

The capital budget reflects direction on project funding pursuant to the June 5, 2007 meeting to add funding for a traffic study of the intersection at Seventh, Adella, and Pomona Streets. The General Fund transfer for capital projects has been increased by $30,000 for this purpose. In addition, the Transnet capital project budget has been reduced from $495,000 to $300,000. This project funding will be reviewed again once the availability of Proposition 1B funds has been finalized.

There has been no adjustment to the funding for the Animal Care Facility pending final direction from the City Council at a future meeting. The adjustment to the funding for Phase III of the Downtown Enhancement Project is reflected in the CDA budget to be adopted by the CDA at the June 19, 2007 meeting. The City Council adopted A RESOLUTION FIXING AND DECLARING THE BUDGET ALLOWANCES OF THE CITY OF CORONADO AND THE VARIOUS DEPARTMENTS THEREOF FOR THE FISCAL YEAR 2007-08, INCLUDING CAPITAL IMPROVEMENTS, AND APPROPRIATING MONEY FROM THE TREASURY FOR SUCH PURPOSES. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by the City Council as RESOLUTION NO. 8222.

5d. Adoption of Resolution Approving the Community Development Agency Budget for Fiscal Year 2007-08 and Authorizing a Loan to the Community Development Administrative Fund. CDA staff prepared the CDA budget for the Fiscal Year 2007-08. Review of this budget is listed in today's CDA agenda.

According to the Agreement for Cooperation entered into by the City of Coronado, the Coronado Unified School District and the Community Development Agency, the general administrative costs incurred by the Agency shall be charged one-third to the City Debt Service Fund and two-thirds to the School District Debt Service Fund. The administrative expenses of the Agency are paid from tax increment revenues.

To provide the mechanism with which the CDA can implement this charge system and establish the indebtedness required to receive tax increment, it is necessary that the City make a $415,096 loan (the FY 2007-08 budget amount for Administrative Fund) to the Agency's Administrative Fund. The loan will carry an interest rate equal to the average rate of interest the City receives on investments. As the Agency receives its tax increment payment from the County and after the 20% portion is set-aside for the Housing Fund, the District's share will be used to repay two-thirds of the principal and interest accrued on the Administrative Loan from the City; the City's share will be used to repay one-third of the principal and interest on the FY 2007-08 Administrative Loan from the City.

The City Council has authorized and the Agency accepted prior loans for administrative expenses as needed to meet budget obligations in prior fiscal years. The Agency's auditor, Diehl Evans & Co. has recommended continuation of this practice as it clearly established the Administrative Loan as a debt of the Agency and confirms eligibility for the use of tax increment revenues to repay that debt to the City in conformance with redevelopment law requirements. The City Council approved the budget of the CDA and adopted A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CORONADO, SAN DIEGO COUNTY, CALIFORNIA, APPROPRIATING MONEY TO THE COMMUNITY DEVELOPMENT AGENCY ADMINISTRATIVE FUND FOR FISCAL YEAR 2007-08. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by the City Council as RESOLUTION NO. 8223.

5e. Approval of Request From Coronado Optimist Club to Hold Its 36th Annual Sports Fiesta From July 23-29, 2007. The Sports Fiesta has been held in Coronado for the past 35 years without incident. This has been a very organized and well-run event. Staff will continue to work closely with the Optimist Club to evaluate event and location changes and to coordinate and finalize the plans. The City Council approved the event with the listed conditions and agreed to provide personnel and services as follows:

  1. That the routes for the 10K and triathlon events be approved by the Police, Fire and Recreation Departments.
  2. That the scheduling of the diving events be coordinated with and approved by the Recreation Department.
  3. That the ocean swim events adhere to established procedures for beach/ocean events and coordination of the events be approved by the Lifeguard Captain. This includes holding a pre-event meeting with the Lifeguard Captain.
  4. That the scheduling of the golfing events be coordinated with and approved by Golf Services.
  5. That the scheduling of the skateboard competition be coordinated with and approved by the Recreation Department.
  6. That placement of barricades and signs be approved by the Police Department and removed from the streets immediately after the scheduled event. "No Parking" signs are to be placed 72 hours in advance.
  7. That no permanent markings be made on the sidewalks or roadways.
  8. That all areas used for events be cleaned at the conclusion of each event.

5f. Adoption of a Resolution Allowing Employees who are Purchasing Additional Service Credit from the California Public Employees' Retirement System (CalPERS) to do so on a Pre-tax Basis. Passage of this resolution would allow employees who purchase additional service credit to do so on a pre-tax basis. It would not result in any additional cost to the City. The City Council adopted the CALPERS drafted EMPLOYER PICKUP RESOLUTION: PRE-TAX PAYROLL DEDUCTION PLAN FOR SERVICE CREDIT PURCHASES (CONTRIBUTION CODE 14). The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by the City Council as RESOLUTION NO. 8224.

5g. Recommendation from the Traffic Operations Committee that the City Council Adopt a Resolution to Relocate a Handicap Blue Curb Zone on Sixth Street Near E Avenue to Sixth Street at D Avenue. Coronado High School has received complaints from users of the existing blue curb zone that it is too far removed from the entrance to the campus and the new theater building at the corner of Sixth Street and D Avenue. Also, as part of the improvements to the high school, new street trees were planted in the parkway and one was located adjacent to the blue curb, making it difficult for a disabled passenger to exit a vehicle. For these reasons it is recommended that the existing blue curb zone be relocated near the corner of Sixth Street and D Avenue. The existing blue curb zone will be restored to regular curbside parking. The City Council directed that the existing blue curb zone and associated signage be relocated to the proposed location to better serve the activities of the high school theater and adopted A RESOLUTION TO DESIGNATE A BLUE CURB ZONE ON SIXTH STREET AT D AVENUE. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by the City Council as RESOLUTION NO. 8225.

5h. Recommendation from the Traffic Operations Committee that the City Council Adopt a Resolution to Convert an Existing 12-Minute Parking Zone Adjacent to 1023 Orange Avenue to a Two-Hour Metered Parking Zone. Currently, parallel parking in the 1000 block of Orange Avenue is regulated by two-hour metered parking. The meters are operational Monday through Saturday from 8:00 a.m. to 6:00 p.m. This area is very desirable to visitors and business patrons due to its location within the central business district. There is a 40-foot yellow curb zone just to the south of the existing 12-minute parking zone that can be utilized for commercial and passenger loading for a time not to exceed 20 minutes. Because parking in the central business district is highly utilized and the need to accommodate additional longer-term parking is desirable and due to the request by nearby businesses, it is the Traffic Operations Committee's (TOC) recommendation that the existing 12-minute parking zone adjacent to 1023 Orange Avenue be converted to a two-hour metered parking zone consistent with the surrounding parallel parking spaces. The City Council directed that the existing 12-minute loading zone be converted to a two-hour metered parking zone and adopted A RESOLUTION TO REMOVE A 12-MINUTE GREEN CURB ZONE ADJACENT TO 1023 ORANGE AVENUE. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by the City Council as RESOLUTION NO. 8226.

5i. A Resolution of the City Council of the City of Coronado Approving and Adopting the Annual Appropriations Limit for Fiscal Year 2006-07 and Fiscal Year 2007-08. As shown on Exhibit I to the resolution, the City's calculation of the appropriations subject to limit for FY 2006-07 is $36,444,437. This leaves Coronado with a margin of $7,212,198 between the appropriations limit of $36,444,437 and the proceeds of taxes subject to limit of $29,232,238. Accordingly, any subsequent changes authorized by the City Council to the budget during FY 2006-07 did not adversely impact the appropriations limit. The City's calculation of the appropriations subject to limit for FY 2007-08 is $38,519,556. This leaves Coronado with a margin of $6,919,411 between the appropriations limit of $38,519,556 and the proceeds of taxes subject to limit of $31,600,144. Accordingly, any subsequent changes authorized by the City Council to the budget during FY 2007-08 should not adversely impact the appropriations limit. The City Council adopted A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CORONADO APPROVING AND ADOPTING THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2006-07 AND 2007-08. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by the City Council as RESOLUTION NO. 8227.

5j. Adoption of a Resolution Supporting the $1 Billion State Budget Allocation of Proposition 1B Funds to Cities in Fiscal Year 2007/08. There are several bills in the legislature that proposed to allocate an amount less than $1 billion to cities for transportation funding from Proposition 1B. The allocation of the Proposition 1B funds for local streets and road funds has been held as an open item in the Budget Conference Committee. This means that it will require further debate before a decision is made. The League of California Cities has urged all cities to adopt resolutions supporting the $1 billion allocation of Proposition 1B funding to local cities. If the estimated funding becomes available, the City of Coronado would have additional funding for planned transportation projects, such as the annual Street, Curb, and Gutter Improvements, and Street Preventative Maintenance (slurry seal) projects. The City Council adopted A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CORONADO, CALIFORNIA, SUPPORTING $1 BILLION STATE BUDGET ALLOCATION OF PROPOSITION 1B FUNDS TO CITIES IN FISCAL YEAR 2007-08. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by the City Council as RESOLUTION NO. 8228.

5k. Validation of Original Determination of Wet Well Re-Lining Emergency Situation at Transbay Pump Station Project. The City Council validated the original determination that an emergency situation exists at the Transbay Pump Station project.

5l. Consideration of Adoption of a Resolution to Utilize a Contractor Pre-Qualification Process Prior to Bidding the Yacht Club Promenade and Marina Support Building Project. The pre-qualification process, based on a pre-qualification package in the model form developed by the State Department of Industrial Relations, was used successfully in the selection process for the Glorietta Bay Master Plan and Public Library Expansion and Renovation projects. Staff suggests utilizing this process again for the Yacht Club Promenade and Marina Support Building Project. The City Council adopted A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CORONADO TO ESTABLISH PRE-QUALIFICATION PROCEDURES FOR THE YACHT CLUB PROMENADE AND MARINA SUPPORT BUILDING PROJECT; TO APPROVE THE FORM OF A PRE-QUALIFICATION QUESTIONNAIRE; TO ADOPT A UNIFORM SYSTEM OF RATING BIDDERS; TO CREATE AN APPEAL PROCEDURE; AND TO APPROVE SUCH OTHER DOCUMENTS AS NECESSARY TO COMPLY WITH STATE LAW. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by the City Council as RESOLUTION NO. 8229.

 

 

6. ORAL COMMUNICATIONS:

a. Steve Alexander, 231 A Avenue, spoke on the poor conditions at Pehoe's dock. He said that it if isn't repaired quickly it will attract seals and could end up being a similar situation to the Children's Pool in La Jolla. Mayor Smisek commented that this is an issue and the City will follow up on it with the Port Commissioner Spane who has been involved in resolving the situation.

b. Jamie Edmonds, representing the Coronado Firefighters, spoke to honor the nine firefighters who lost their lives the previous night in a Charleston, South Carolina fire. He announced that there would be a moment of silence at 4:00 p.m. He also spoke about the recent structure fires in Coronado where the structures were saved. He spoke about the recent Spirit of Courage awards and added that the firefighters should never be taken for granted.

c. Bill Plemens, 1204 Glorietta Boulevard, discovered that he was on a list of potentially historic homes when a neighbor informed him. He feels there are possible Brown Act violations due to the lack of notification regarding discussions of this list. He feels it is not fair or equitable to homeowners. He read from the previous ordinance that said, "For a property to be designated a historic resource you must have permission of the owner."

d. Steve Bruce, 868 G Avenue, spoke about hosting a possible World Summit for Children in San Diego.

e. Susan Heavilin, 1144 Isabella Avenue, spoke about the fire at Isabella and F Avenue and how Coronado did not have the proper equipment to fight the fire. Engines from National City, San Diego, Imperial Beach, and Federal responded. She read about a quint in Massachusetts that was taken off-line due to dangerous conditions. She mentioned firefighters who have left Coronado and suggested that the City should pay the firefighters more.

f. Frank Tierney, 550 J Avenue, announced that he had filed a notice of intent to circulate a petition for an initiative to increase TOT from 8% to 11% with the additional 3% to be assigned to the day to day operating needs of Coronado Hospital subject to audit by the City. He asked for citizen support to collect signatures. It will require 66 2/3% plus one vote to prevail at the ballot.

g. Lorraine Duro, 1649 Glorietta Boulevard, spoke about the lawn bowling green. She feels that the lawn bowling facility has a unique surface that needs to be protected from accidents, corner cutting, dogs, soda spills, etc.

h. Councilmember Downey wanted to recognize and congratulate the Coronado Moms who were recognized at the 2007 San Diego 50 Best Moms essay contest. She listed the moms and the children who wrote the nomination essays: Shawna Davis (Bailee), Asha Devereaux (Sabrina) and Karen Kerr (Jared). She reported that she brought a copy of another community's local newsletter that shows a promotion of the entire city. Ms. Downey also asked that the City Manager provide a report on the ongoing discussions with PAWS. She wanted to make sure that PAWS representatives didn't get the idea that their efforts to work with the City were not appreciated, but she does think the City Council made the right decision to wait and get more information on finding ways to fund the project rather than go into the General Reserves.

i. City Manager Mark Ochenduszko reported that he met with representatives of PAWS at their request. At the last City Council meeting the direction was to not change the funding in the Capital Improvement Program for a project where there isn't sufficient funding at this time. The meeting was a positive one and there was a great exchange of information. All alternatives associated with the building are being examined both related to funding it and value engineering the facility. There will be further discussions with PAWS to see where to go in terms of making this project work and the item will come back for Council action at a later date.

j. Councilmember Downey referred to a story about an award-winning energy efficient affordable housing project in Northern California. Right now the City is not being required to meet greenhouse gas restrictions and other issues, but it could be in the future. Because there are future needs for affordable housing in Coronado, she would like City staff to consider this as part of the criteria and said that everyone should make an attempt to consider this whenever possible.

7. CITY MANAGER:

7a. Update on Council Directed Actions and Citizen Inquiries. No report.

8. PUBLIC HEARINGS:

8a. Public Hearing: Adoption of a Resolution Approving the Issuance of Multi-Family Housing Revenue Bonds by the California Statewide Communities Development Authority for the Affordable Rental Housing Project at 525 Orange Avenue. Rachel Hurst, Director of Redevelopment and Housing, explained that part of the financing for the rehabilitation of 525 Orange Avenue involves low income housing tax credits and tax exempt multi-family revenue bonds. In order for the California Statewide Communities Development Authority, of which the City of Coronado is a member, to issue bonds for the project, they require the local jurisdiction to hold a public hearing and to adopt a resolution saying that the jurisdiction agrees with the project and the issuance of the tax exempt bonds.

Mayor Smisek opened the public hearing and seeing no one wishing to speak on the item, the public hearing was closed.

MSUC (Downey/Ovrom) moved that the City Council adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CORONADO APROVING THE ISSUANCE OF MULT-FAMILY HOUSING REVENUE BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by the City Council as RESOLUTION NO. 8230.

AYES: Downey, Monroe, Ovrom, Tanaka, and Smisek

NAYS: None

ABSENT: None

 

The City Council recessed at 3:40 p.m. to call the meeting of the Community Development Agency to order. After handling several items of CDA business, the Council resumed in a Joint Meeting with the CDA for the Joint Public Hearing of City Council Item 8b and CDA Item 5a.

8b. Joint Public Hearing of the Community Development Agency and the City of Coronado: Consideration of a Disposition and Development Agreement Between Coronado Interfaith Housing Corporation and the Community Development Agency of the City of Coronado to Rehabilitate and Operate Affordable Rental Housing at 525 Orange Avenue. Rachel Hurst, Director of Redevelopment and Housing, presented the staff report. The property at 525 Orange Avenue was purchased by the CDA in 2006 in order to substantially rehabilitate it for affordable housing. The tenants were relocated last year. The design for the renovation was approved by the Design Review Commission. The rehabilitation will retain all of the existing sixteen units with the same configurations. There will be improvements throughout, including landscape, parkscape systems. A couple of units will be made accessible and adaptable for potential handicapped tenants. In April, staff recommended and the City Council agreed to engage a developer for this project and the City Council authorized staff to negotiate a Disposition and Development Agreement with San Diego Interfaith Housing.

Mayor Smisek opened the public hearing and seeing no one wishing to speak on the item, the public hearing was closed.

MSUC (Ovrom/Tanaka) moved that the City Council approved the project, approved the Disposition and Development Agreement, and adopted A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CORONADO, CALIFORNIA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF CORONADO AND CORONADO INTERFAITH HOUSING CORPORATION. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by Council as RESOLUTION NO. 8231.

AYES: Downey, Monroe, Ovrom, Tanaka, and Smisek

NAYS: None

ABSENT: None

After the vote, the CDA meeting recessed and the City Council meeting continued.

 

9. ADMINISTRATIVE HEARINGS: None.

 

10. COMMISSION AND COMMITTEE REPORTS:

10a. Report from the Port Commissioner Concerning Port Activities. Port Commissioner Robert Spane reported that the Peohe's dock is going to be redone. Work should begin soon. He also addressed issue of the unauthorized non-replacement of the riprap and the footing for the seawall that was built on Port tidelands at 501 and 505 First Street. The Regional Water Quality Control Board held a hearing on this last week. The homeowners are required to replace the riprap, remove the footing from Port tidelands; at least part of that by the 4th of July. He thinks the homeowners have the opportunity to appeal to the State Water Quality Control Board. The one piece that could be of issue from Coronado's perspective is that the seawall, or the retaining wall, is on the owner's property and was built without permits. The Port feels that this will end if the homeowners remove the footing and replace the riprap. Admiral Spane also mentioned the potential "Light the Coronado Bridge" project led by the Port, along with many other stakeholders. He thinks it is a marvelous idea and hopes it will go forward.

11. CITY COUNCIL BUSINESS:

11a. Council Reports on Inter-Agency Committee and Board Assignments.

Councilmember Downey reported on the SANDAG meetings she has been attending. On behalf of Mr. Monroe she attended the SANDAG Policy Committee meeting where she had the opportunity to be on both sides of the dais. SANDAG is looking at whether there is a need in the San Diego region for countywide funding of quality of life issues. The first area identified as lacking funding was a workshop for water quality. Although Coronado is ahead of the game and has an NPDES permit a lot of the cities in San Diego County are not meeting the requirements. If the requirements are increased they will be even worse off. She helped present at another meeting regarding beach sand replenishment. She appreciates this Council being supportive and being willing to work to see what our fair share is. The Shoreline Preservation Committee recognizes that something has to be done as a region on this. The Shoreline Working Group is coming up with a lot of reasons, but at SANDAG the question is who should pay for it. One interesting thing that came up was that even though these regional needs are recognized everyone isn't ready to do another TransNet type of bond. Possible funding avenues are being looked at and TOT is relevant here. A lot of the beach communities have already increased their TOTs and some have earmarked it just to help pay their fair share of their beach sand replenishment. Ms. Downey chaired the monthly Environmental Mitigation Program meeting. She met with Mr. Tanaka and Scott Huth to talk about appropriate memorials. There were four League of California Cities meetings. The League is beginning to discover their regional strength in numbers. She was asked, on behalf of SANDAG, to meet with environmental agency members from India and Pakistan, who are looking to San Diego as an example of how to do environmental governance.

Councilmember Ovrom attended a couple of Metro Wastewater budget subcommittee meetings where there is talk about secondary treatment and the potential financial impact on customers. There are ongoing discussions of joint governance and whether San Diego and the Wastewater Commission are going to want to come up with a different way of governing the sewer structure. He attended a South County Economic Development Council meeting, a meeting of the Tunnel Commission, met with Mr. Ochenduszko, Navy representatives, and others regarding traffic mitigation, attended the Middle and High School graduations, and a San Diego Military Advisory Council Board of Directors meeting to talk with the Navy about supporting Coronado on traffic issues.

Councilmember Tanaka met with artist Todd Stands to finalize public art ideas at the Marina building. He attended a Special City Council meeting, the Coronado Schools Foundation reception with Mr. Monroe, the Islander Awards Ceremony for the top 5% of the High School classes are recognized with Mayor Smisek, the Fire and Police Chiefs. He met with Susan Heavilin who had notified the City that she is dropping some of her opposition to the siting of the lifeguard support building, and who showed him some sites she thought might be more appropriate. He met with the Lambs' Players representative once again. He attended the retirement party for Coronado teachers and left there to go to a house fire. Mr. Tanaka mentioned that all the pieces of equipment that were discussed, including a ladder truck and a light and air unit, were on site except a quint. Mr. Tanaka attended the baccalaureate service as well as the High School Graduation.

Councilmember Monroe attended the Sharp Hospital Volunteer lunch with Mayor Smisek, attended his 50th reunion at Cornell, attended two SANDAG Transportation Committee meetings, one SANDAG Board meeting, and a SANDAG Borders Committee meeting. He had three meetings with Supervisor Greg Cox regarding the Bayshore Bikeway. The goal is to complete the path from Imperial Beach up through Chula Vista, National City, and past 32nd Street Naval Station. He attended a Navy Complexes meeting last month where the Commanding Officer briefed them on the Navy's building plans. He attended a Special City Council meeting, the Schools Foundation President's reception, a reception after the PAWS annual meeting, an MTS Board meeting and finance workshop. After a balanced budget was initially presented, MTS went $8 million in the hole because of some new estimates from the State. They have worked the numbers again and MTS is now presenting a balanced budget. The North County Transit System is far from a balanced budget and they are faced with opening up the Sprinter. He spoke with the Lambs Players fundraising representative, attended the Commissioners' Dinner, and the new annual Coronado Citizen of the Year sponsored by Coronado First Bank where they recognized Admiral Joe Rizza. He attended the South County Economic Development Council "In the Know" luncheon and the Midway Annual Celebration of the Battle of Midway.

Mayor Smisek attended the Library Board meeting where they approved a coffee cart for the front of the library beginning this fall. He met with Port Commissioner Spane at the Bay Beach Café that is planned for an upgrade and a little bit of expansion. The recommendation he and Admiral Spane gave was to have a public meeting with the nearby condo owners to show them what it will look like. He attended the Navy Complexes meeting where it was announced that the new date for the opening of the Third Street Gate will be July 9th. He advised that the entrance at 3rd Street will be one-way traffic in. At the same time the Fourth Street Gate will become one-way outbound. Initially there won't be traffic control lights at 3rd and 4th Streets so there will be Navy traffic control personnel to keep everything going. At that time Alameda will become two-way.

11b. "Light the Coronado Bridge" Presentation by the Port of San Diego and Coronado Public Art Subcommittee. Caroline Murray, Coronado's representative to the Port of San Diego Public Art Committee, introduced Katherine Sass, Director of Public Art for the Port of San Diego, and Gaidi Finnie, Chair of the Signature Art Subcommittee to the Port. They provided a presentation of concepts for the project. Ms. Sass explained the steps of the selection of the design and the process for approval. She asked for input from the City Council.

Mayor Smisek commented that the idea of underlighting the bridge sounds very attractive. He likes the blue lighting option, but it needs to be the right kind of light that considers the nearby neighborhoods and is not ostentatious. It would be good if this were low profile. The lighting should be dimmed at the terminus and brighter in the center so as not to affect Coronado and the hospital. The Navy in Coronado should be involved because of the consideration of flight traffic. Laser lighting can be dangerous for pilots' eyes.

Councilmember Tanaka thinks this is a very exciting idea. Mayor Smisek made some important points. He really liked the last picture with the subtle blue lighting. If it is done well, it wouldn't bother the neighbors. He remembers that in the old days, people used to hop up and touch the supports under the bridge. If the lights were done the right way it could provide a level of security, with lighting on areas that are usually dark. It would be safer considering the current terrorist concerns, and other dangers, etc.

Councilmember Downey liked all the samples. She isn't ready to suggest that the City would commit to any funding. She is reluctant to go into the City's reserves for public art.

Councilmember Ovrom supports where the process is at this point. The final answer depends on what the presentation looks like, what the cost is, and what is expected for the residents.

Councilmember Monroe agreed with the comments made by the other council members.

Bob Geilenfeldt, 354 Glorietta Boulevard, said that he sees the bridge every morning from his front room window. He thinks it is a fabulous piece of technology. Many of the ideas have merit. He thinks there is a need to address the idea of first painting on the bridge. It hasn't been painted since the toll ended. It would be nice to have indirect lighting in the evening but it also would be nice to have paint on the bridge in the day time.

Ms. Sass thanked the City Council for receiving the report.

11c. Review and Comment on the State Route 75/282 (SR 75/282) Transportation Corridor Project Draft Financial Strategy Report (June 2007). Jim Benson, Assistant City Manager, provided the public with some history on the project, the options that are available to be considered, the timeline, and financial issues. He introduced Eric Rouse, of Sharon Greene and Associates.

Mr. Rouse provided an overview as to where the City stands with the financial strategy component of the project. He reviewed the purpose of the strategy, the development process of the strategy considerations, how the purpose and need for the project affects the financial strategies, a review of the costs of the three alternatives, and specific funding sources and strategies for use of those sources.

Councilmember Ovrom asked about a payment strategy that was not mentioned. It would involve public/private ventures that are being sought out in various places in the world. Mr. Rouse explained that this was touched upon in the report and admitted that the tunnel or underpasses alternatives would be a potential for public/private investment.

Councilmember Monroe was surprised by some of the things in the report. He has been a supporter of the tunnel all the way along, but there are two things he has told residents, the North Island Association, etc. that the City would not do, the reintroduction of tolls on the bridge and a property based tax with bonds. He asked where the authority came from to even consider those as options. He doesn't know how this got this far so that this is being talked about in public when the Council said this would not be done. Mr. Monroe commented that for four years he listened to a City Council member who is strongly opposed to the tunnel project and warning about the possibility of a parcel tax in Coronado. Mr. Monroe will be the first to raise his hand and say that a parcel tax for Coronado parcels is not and will not be a part of the strategy. Today he sees a reference to parcel tax in the presentation. He does not like the process that has two things publicly, even in draft form, when the City Council had given direction that it was not going to be done. Regarding the tolling option 3 and an underpass at Orange Avenue, he doesn't see how anyone can possible think about introducing tolls on the bridge again in order to do that. He asked for additional information on the mention of 10% transit service.

Mr. Rouse responded that, in addition to helping build the project, a benefit to the community would be some funding to increase transit service across the bridge.

Councilmember Ovrom attempted to clarify that this is a document of funding possibilities. It does not give a specific recommendation. This was done because the FHWA wants to see the full range of possibilities addressed regardless of whether or not the City Council has decided whether or not to use them. The current policy of the City Council has been that they are not going to seek either new taxes or tolls, but the process the consultant is going through requires that they consider those as a possibility.

Mr. Monroe added that the last time this came before the City Council three years ago they took out those ideas as a funding possibility. The direction was to not put parcel tax in there. On the transit issue there is discussion of not using all of the funding for construction. 30 or 40% will be used for operations and maintenance and 10% will be used for transit. He still doesn't know what that 10% is.

Mr. Benson pointed to the failure of the City of Los Angeles to win a federal transportation grant of $9 billion because they refused to include congestion pricing or transit in their proposal. He said that including transit is part of the requirement. Federal funding is based on the expectation that certain things are considered to enhance transit. He advised that it would be extremely premature to try to nail down how that might come to fruition. With respect to tolls, staff was hearing what the Navy said. When the Mayor and Mr. Ovrom went back to the Navy, the CNO asked why tolls aren't being considered. Things change over time and the emphasis on tolls today is significantly different. Nationally everyone is talking about locally funded initiatives being part of building major transportation structures. That does not mean they have to be used, but it does mean that needs to be part of the discussion. Federal highways will not even enter into a discussion if this isn't included.

Mr. Monroe asked about the comment that said that if the tunnel is Navy use only it would mean no FHWA funding. He understands that the tunnel is for Navy use only, as it will come up on the base.

Mr. Benson explained that if the facility is open for everyone there is a rational for Caltrans and FHWA and other people to participate. The project development team, Federal Highways, and particularly Caltrans, have raised the point that if the facility were restricted by having security at the east end the rationale for other people to participate is diminished. In the alternative where security is at the east end those agencies do not feel they have as big a role, if any, and the City would have to consider the facility being primarily funded by the Navy. If security is done at the other end, someone can elect to use the tunnel and let off at the other end. Most people would not do that, but it is still a possibility. Mr. Benson explained, in response to Mr. Monroe's earlier question of using toll money for underpasses, that the City considered the bridge approach on this side of the Bay to as never having been adequately completed when the bridge was designed. It just put the traffic onto Coronado streets to they go where it will. Staff feels the rationale is there to address that incomplete approach through a less expensive alternative, such as underpasses. It would still need to be discussed.

Mr. Monroe asked about the long term traffic escalation. There has been a decrease in traffic since 2002, but the third carrier is coming. Mr. Benson explained that SANDAG modeling, which has been relatively accurate, does not attribute a lot more traffic to North Island, but rather to other sources and basically takes Coronado to 104,000 trips a day. In 2002 the City experienced 95,000 trips a day. Mr. Monroe thinks that the community is pretty well built out and the Navy is pretty well built out at North Island. He asked where this additional traffic would come from. He is not sure this model applies in light of the special case in Coronado. Mr. Monroe also talked about the 3% escalation rate. SANDAG has recently changed to 7%. He pointed out that in the last two years it has been 18 to 20%.

Councilmember Tanaka said he shares Mr. Mornoe's concerns and reiterated that he will not be pushing a parcel tax either. He has told people that this project is not about pushing the burden onto the Coronado taxpayer. He agrees that the whole point of a financial strategy report is to consider all options. The City hasn't even begun to touch the hardest decisions. It is very clear that the federal portion of funding is the key part. The less the federal government funds, the harder the City Council's discussion will be regarding tolls, parcel taxes, and TOT increases. When the City knows more of the variables, particularly what the federal portion of this funding will be, the City Council will have to have an important discussion about what the City will fund and what the strategy will be for funding the remaining 30%. He does not feel there will be a 5/0 Council on that. At this point, there is still a 5/0 Council on moving forward and studying this.

Councilmember Downey commented that this is where the rubber meets the road for her. She finds it funny that the Navy asked why the City wasn't putting the tolls on. If the federal government isn't going to step up and assist in funding this, the City will not be able to move forward. The rest of this is academic. She pointed out that there are competing needs for TOT. She suggested that there should be some kind of public meeting to discuss TOT. If the City decides that its percentage will come out of TOT, she would prefer to raise the TOT sooner rather than later and begin setting that money aside.

Councilmember Ovrom said he was constantly asked on the campaign trail if the City is ever going to get a tunnel. He told people that he didn't know, and he still doesn't know. He was asked what the major consideration is. It is the same today as it has always been - if the City doesn't get a major contribution out of the federal government there will not be a project. Staff has been pursuing a process that tries to keep as many avenues open as possible to make sure this financial document has all the opportunities out there. Nothing will be known for a couple of years. He thinks the City needs the flexibility to have staff chase that money under the full expectation that it may not even come about. If it does come about, the people of Coronado are probably going to have to vote on it. While he has not missed paying the toll, he thinks it was fundamentally a flawed decision. As a people, Coronadoans may have to decide to tax itself in the form of a toll just to get the control back. He is not suggesting that the City Council make that decision now.

Mayor Smisek concurred with Mr. Monroe's concerns. At this time, the City Council is not considering tolls or parcel tax without a vote of the people. That way they can be kept in as options so the document can be complete.

Mr. Monroe pointed out that the community worked very hard to keep the tolls on the bridge at SANDAG. It was a bloody battle. Mayor Smisek clarified that the City Council position at this time does not support a parcel tax or tolls as a funding option. If there would ever come a time when a council would support this, it would require a vote of the people to do so. Mr. Tanaka supports the idea of leaving out the 'without a vote of the people' part.

MSC (Smisek/Tanaka) moved to accept the report and affirm that the City Council's position at this time does not support tolls or property tax as sources of local share contribution.

Councilmember Downey said she is not comfortable with the idea of a parcel tax but she is not necessarily opposed to tolls. She doesn't want to take it out of the mix at this time.

AYES: Monroe, Tanaka and Smisek

NAYS: Downey, Ovrom

ABSENT: None

11d. Direction to Staff on the Design of the Lawn Bowling Green Project. Ed Walton, Engineering and Project Development, provided the staff report and explained that there is no funding for a fence in the approved project.

Mayor Smisek questioned the durability of the artificial grass and if it can be cleaned properly. If it is too hard to care for he would support the idea of using regular turf that is cared for by the Parks department. The main concern is the fragility of the green. If it is fragile and needs to be protected, as is being discussed, he doesn't want to put it in. If it is durable, tough, will look nice, and save the City money, then that is fine. He added that the bollards and chains have worked in the past. The area is a park by designation. He recalled that the subcommittee's recommendation was to have an open and friendly look.

Mr. Walton explained that the turf is sturdy, is less expensive to maintain, is stain resistant, and it can be cleaned. It does need to be vacuumed regularly and have a regular schedule of maintenance. He said the actual turf has not been chosen, but it would be a shorter cut and it would be installed on a rolled sand foundation. He explained that the bollards will go all the way around the area but the entrance will be open.

Councilmember Tanaka echoed Mayor Smisek's comments. In the beginning he was reluctant to replace the lawn bowling green, but now agrees with the use of the artificial turf. Not only are there increased maintenance costs with the other, but lawn bowling is played under fairly fine specifications. He thinks it will be easier to maintain the specs of the field with artificial turf. Additionally there are the financial savings. The real issue is whether or not to put a fence around it. A fence says deliberately, "Stay Out." He ultimately supports chains and bollards but is not married to the idea. He could live with something around 4 feet high with brick pillars and wrought iron metal in between.

Councilmember Downey agreed with Mr. Tanaka in supporting the turf. There will be some added ability to discourage people from walking their dogs on it or use it for other non-lawn bowling uses. She would like to see the lawn through the fence. She feels that this probably needs to be more than the current bollard and chain.

Councilmember Monroe pointed out that he is not a fan of the fence. There is no fence at Balboa Park. When he heard there would be a debate over this he wondered if the City Council made a mistake going back to a lawn bowling. He would go for bollards as they might be a nice compromise. If bollards don't work, then the City could build a fence. If all the negative fantasies end up coming true, something else can be done.

Bill Hiscock, 416 Glorietta Boulevard, said that the Lawn Bowling Club has offered to tend to the court. He then introduced Ted Farfaglia who showed the City Council some pictures of the damage done in San Clemente.

Ted Farfaglia, 41 Calle Montevilla, San Clemente, shared a personal experience from the courts in San Clemente. They have a facility with artificial turf that is partially protected. They had an unfortunate incident from skateboarders who skated off the cement platform onto the turf. The damage was so extensive that it was impossible to repair.

Dottie McSwain, 707 Orange Avenue, recommended a fence around the greens. She feels that if the top is flat the skateboarders will use it.

Mayor Smisek suggested that the City start with the bollards and see if they work.

MSC (Downey/Monroe) moved that the City Council concur with the CIP Subcommittee's recommendation that the lawn bowling green be protected by a bollard and chain system similar to the existing boundary marker to maintain the open and inviting atmosphere.

Ms. Downey suggested that signage would be beneficial but she does not want a proliferation of signs.

Mayor Smisek said he would prefer that the signage is positive and would refer to 'lawn bowling only' rather than saying 'NO%u2026%u2026' He hopes people will see the artificial turf and realize that it isn't to be used the same as a grassy area. The "No smoking ban for the parks applies to this area as well because it is a designated park.

Mr. Ovrom thinks that the only question is whether to have a fence or not. Given the level of investment, he said he would side with a fence and therefore is not sure whether or not to support the motion.

AYES: Downey, Monroe, Tanaka and Smisek

NAYS: Ovrom

ABSENT: None

 

11e. Recommendation Regarding Utilities Undergrounding and Design Preference for Margarita Avenue Sewer Replacement and Street Resurfacing Project.

Councilmember Ovrom recused himself from this item due to the location of his property.

Ed Walton, Engineering and Project Development Department, said that Margarita Avenue has not received pavement rehabilitation in over ten years. Sever tree root intrusion has caused significant damage to the pavement, sewer main, curbs and gutters. An alternative option of widening the parkways is to keep construction activity further away from the trees, to provide additional area for tree roots to grow, and reduce the amount of root trimming that would have to occur. Staff's recommendation is that the City go forward with the design of the Margarita Avenue Sewer Main Replacement and Street Resurfacing project, including replacement of the curb and gutters as necessary.

When discussion began regarding these repairs the opportunity to underground the utilities as the road was opened up became evident. This is a very worthwhile project but there are obstacles such as the fact that the street doesn't qualify for 20A funds, an SDG&E allotment that Coronado receives each year to be used for right-of-way work. Even if it did, there are no funds until after 2012 because of the Star Park Circle undergrounding project. Another way for the public costs to be divided is for the property owners to do form their own group and pay for it through a 20B funding plan, or to set up an assessment district and pay off a 20, 25, or 30-year bond or assessment on an annual basis. A rough estimate for undergrounding runs from $900 to $1300 per parcel per year for 30 years. Flyers were sent to 290 people in the area to determine the range they would be willing to pay for such a project. The results of the survey showed that 40% were not willing to pay for the undergrounding. 23% would be willing to fund up to $500 per year for 30 years. Based on these responses staff is recommending not to further this cause at this point because there is not sufficient support.

Mr. Walton advised that the work really needs to be done in the fall or early winter when the trees are the most dormant and the roots are less likely to be damaged by construction activity. The rehabilitation project is on schedule to move forward with the rehabilitation project this fall with the Council's approval. If there is a delay we would have to wait until next year.

Mayor Smisek commented that it seems the roots are the biggest concern and asked how bad the sewer problem is. He asked what could be done if the residents don't want the overlay.

Mr. Walton responded by saying that 90% of the sewer joints have root intrusion. Repairs and patches can continue to be made to keep the sewer lines operational, but if the City is going through the expense of doing the overlay, the sewer main should be done at the same time. The street is starting to be in pretty bad shape. Replacement with 20-foot pipes will minimize the number of joints and they would be sealed better. Mr. Walton agreed with Mayor Smisek that the rest of the streets in Coronado are on schedule for repairs except for Margarita Avenue, which is now overdue for major repair rather than a slurry seal.

Councilmember Tanaka asked if the trees will survive if the project goes ahead as staff recommends, and the street width remains the same. Mr. Walton responded that using the arborists recommendations of how and where to cut the trees they should be all right but there are no guarantees. The trees are Canary Island Pines with a healthy life span ahead of them. Mr. Tanaka asked how Margarita Avenue's 48' width matches up with the other streets in Coronado and why it was proposed to add 6' of parkway instead of only 3'. He was asking because he wouldn't be opposed to narrowing the street a little to save famous trees, but thinks Coronado's forefathers did a good job of making nice, wide streets and wouldn't want to change that. Mr. Walton answered that 48' is that standard for street width throughout the village. Mr. Tanaka commented that narrowing the street to 36' seems to be a little excessive and wondered if those extra feet would make a difference to the trees, or if future residents would be very unhappy with such a narrow street. Mr. Walton indicated that the recommendation wasn't set at 6', but was offered as a range from 4' to 6'. 36' was the minimum to be able to keep 2 travel lanes and 2 parking lanes. Mr. Tanaka said that if 4' or 2', reducing the street from 48' to 40' or 44' would help give the trees a little extra room, then he wouldn't mind. Mr. Walton responded that from a constructability point of view a foot or two might help get the forms in, but he wasn't sure how far would improve the survivability of the trees. Mr. Tanaka said he doesn't want to kill the trees, so would be willing to narrow the street a few feet as long as it is uniform along the whole street.

Councilmember Downey understands that during the discussion there were property owners who were not in favor of gaining more parkway in front of their homes. Perhaps the reason is because some people have special landscaping they would not want to have to pay to expand as well. She asked if a wider parkway would cause the owners to have to pay for extra landscaping. Mr. Walton explained that during initial construction the City would replace the landscaping in kind. The owners would then be responsible for maintenance. He understood that a negative concern in increasing the parkway was based on aesthetics; the trees would off-set rather than centered.

Mayor Smisek said the City emphasis should be on how to fix the street. Because of the result of the residents' votes the current street width should be maintained. The undergrounding idea came as a suggestion from the residents. That is something that has to be done on a case by case basis, as funding becomes available unless the residents want to do it on their own.

Mayor Smisek opened public comment.

Elvira Moore, 625 Margarita Avenue, commented that they were told at the March meeting that only the 600 block of Margarita would have the extension and that the 700 and 800 blocks would not. The reason for that was that their rain gutters had been fixed properly which prevented the roots from going out and damaging the street. She agrees that it would be a good idea, if the street is already going to be dug up, to underground the utilities. The people on Margarita have tried to get on the list for undergrounding over and over but never seem to get there.

Susan Sheppard, 809 Margarita Avenue, thought that there were three alternatives in the staff report. The third alternative was for further study on this matter. She appreciates that staff had the meeting for the residents but there is still confusion on the issue of the undergrounding. There was a letter sent that talked about the undergrounding but there wasn't a clear estimate on the cost. The question of how much people were willing to pay scared people away. The undergrounding has a lot of benefits and she doesn't want to see this opportunity go by.

Councilmember Downey asked if there is any urgency to make the sewer repairs now. If there is some interest, could staff find out how much the undergrounding would cost so the people have that information. Could the City wait a bit on this?

Mr. Walton responded that the City could defer doing the pavement work and thus the sewer main work rotor rooting the lines. In order to get more refined assessment of the undergrounding would require the hiring of an assessment engineer to do a study to define the area, define the benefit, and define the cost.

Ms. Downey asked how much a study would cost. Mr. Walton estimated that a complete assessment engineering report would start at $50,000.

Councilmember Monroe thinks that, with SDG&E's experience, there ought to be enough local experience to avoid a $50,000 estimate on how much it will cost to underground utilities on a street.

Mayor Smisek commented that the problem is that if the City starts there, the whole City has to be done. He is also concerned that 40% of the neighbors said they don't want to pay anything and 23% said they would pay up to $500. That is not even in the realm of possibility so it is really a waste of money and time.

Mr. Tanaka thinks that the survey provided valuable data. The survey melded together multiple issues. He is comfortable with what he wants the City to do on the streets and sewers for the most part. The City Council can probably act on that today. He is not sure about the assessment district part. People have been told repeatedly that they are welcomed and encouraged to form their own assessment district. He thinks it would be interesting to have the City come up with a reasonable estimate of what their expense would be if they formed an undergrounding district and then repeat the survey question.

Mr. Benson explained the numbers in the survey. Getting a 40% response was a very good response. Staff did a lot of outreach and went door to door. People there are tired of the street being so bad. Ten years ago they said to leave it alone. If the City starts now, and concentrates on the project they can meet the schedule to have a contract awarded by November. If a month or two are eaten up now, that window will be missed and the trees will be more vulnerable.

Mr. Monroe feels that is helpful to him. The $900 to $1300 was based on an estimate.

MSUC (Smisek/Tanaka) moved that the City Council: (1) Direct staff to continue with final design of the Margarita Avenue Sewer Main Replacement and Street Resurfacing project, including replacement of curb and gutters as necessary in the current locations; full depth AC replacement and AC overlay as needed to bring the street into conventional standards; and (2) suspend efforts to form an assessment district to privately fund the undergrounding of the utilities.

AYES: Downey, Monroe, Tanaka and Smisek

NAYS: None

ABSENT: None

DISQUALIFIED: Ovrom

12. CITY ATTORNEY: No report.

13. COMMUNICATIONS - WRITTEN: None.

The City Council recessed to Closed Session at 6:36 p.m.

14. CLOSED SESSION:

a. CLOSED SESSION: CONFERENCE WITH LABOR NEGOTIATORS

AUTHORITY: Government Code §54957.6

CITY NEGOTIATORS: Mark Ochenduszko, City Manager; Leslie Suelter, Director of Administrative Services; Jim Benson, Assistant City Manager

EMPLOYEE ORGANIZATION: Self-Represented Employees

b. CLOSED SESSION: CONFERENCE WITH LABOR NEGOTIATORS

AUTHORITY: Government Code §54957.6

CITY NEGOTIATORS: Mark Ochenduszko, City Manager; Leslie Suelter, Director of Administrative Services; Jim Benson, Assistant City Manager

EMPLOYEE ORGANIZATION: Executive Employees

c. CLOSED SESSION: CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION

AUTHORITY: Government Code §54956.9(a)

NAME OF CASE: City of Coronado v. Linda Hascup, Mikel Haas, et al.

d. CLOSED SESSION: CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION

AUTHORITY: Government Code §54956.9(a)

NAME OF CASE: Coronado Cays Homeowners Association v. City of Coronado

Case No. GIC 872917

The City Council resumed the regular meeting at 7:41 p.m.

City Attorney Morgan Foley reported that direction was given to the City's negotiators on Items 14a and 14b, no action was taken on Item 14c, and on Item 14d direction was given to the City's legal counsel.

15. ADJOURNMENT: The meeting was adjourned at 7:42 p.m.

Approved: July 3, 2007

/s/______________________________

Tom Smisek, Mayor

Attest: City of Coronado

/s/______________________________

Linda K. Hascup

City Clerk


MINUTES OF THE

REGULAR MEETING

COMMUNITY DEVELOPMENT AGENCY

CITY OF CORONADO City Hall Council Chambers Coronado, CA 92118

Tuesday, June 19, 2007

The Community Development Agency regular meeting was called to order at 3:40 p.m.

1. ROLL CALL:

Present: Members Downey, Monroe, Ovrom, Tanaka, and Smisek

Absent: None

Also Present: Executive Director Mark Ochenduszko

Agency Attorney Morgan Foley

Agency Secretary Linda Hascup

2. MINUTES: The minutes of the Regular Meeting of June 5, 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 submitted.

3. ORAL COMMUNICATIONS: None

4. REPORTS:

a. Executive Director: No report.

b. Agency Secretary: No report.

c. Agency Treasurer: Approval of Warrants - The Agency approved Warrants No. 90003413 through 90003430 as audited and approved by the Audit Committee, provided there are sufficient funds on hand.

d. Agency Attorney: No report.


5. PUBLIC HEARING:

5a. Joint Public Hearing of the Community Development Agency and the City of Coronado: Consideration of a Disposition and Development Agreement Between Coronado Interfaith Housing Corporation and the Community Development Agency of the City of Coronado to Rehabilitate and Operate Affordable Rental Housing at 525 Orange Avenue.

This item was heard as a Joint Public Hearing with City Council Item 8b of the June 29, 2007 meeting. Rachel Hurst, Director of Redevelopment and Housing, presented the staff report. The property at 525 Orange Avenue was purchased by the CDA in 2006 in order to substantially rehabilitate it for affordable housing. The tenants were relocated last year. The design for the renovation was approved by the Design Review Commission. The rehabilitation will retain all of the existing sixteen units with the same configurations. There will be improvements throughout, including landscape, parkscape systems. A couple of units will be made accessible and adaptable for potential handicapped tenants. In April, staff recommended and the City Council agreed to engage a developer for this project and the City Council authorized staff to negotiate a Disposition and Development Agreement with San Diego Interfaith Housing.

Chair Smisek opened the public hearing and seeing no one wishing to speak on the item, the public hearing was closed.

MSUC (Ovrom/Tanaka) moved that the Agency Board approve the project, approve the Disposition and Development Agreement, and adopt A RESOLUTION OF THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF CORONADO, CALIFORNIA APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF CORONADO AND CORONADO INTERFAITH HOUSING CORPORATION AND AUTHORIZING THE AGENCY'S EXECUTIVE DIRECTOR TO EXECUTE THE AGREEMENT AND ALL DOCUMENTS IN CONNECTION THEREWITH. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by Council as RESOLUTION NO. CDA-188.

AYES: Downey, Monroe, Ovrom, Tanaka, and Smisek

NAYS: None

ABSENT: None

6. AGENCY BUSINESS:

6a. Review and Adoption of a Resolution Approving the Community Development Agency Budget for Fiscal Year 2007-08 and Making a Determination Regarding Expenses Paid from the 290 Fund (20% Housing Set-Aside). The Agency's revenue is mainly composed of tax increment, administrative loan monies from the City, interest received on funds invested, and proceeds from any bonds issued or other project loan funds received. In addition, the Agency receives revenue from the Glorietta Bay Leasehold (Restaurant and Marina operations) that are used for renovations of leasehold improvements, and rent revenue from affordable housing units that is deposited in the 20% Housing Set-Aside fund. The tax increment revenue estimated in this budget is based on a 5% growth of the tax increment revenue from FY 2006-07. Supplemental tax increment for FY 2006-07 is not included in the revenue projections because the amount is unknown at this time. However, supplemental monies will be received during the first quarter of FY 2007-08 and can then be applied to Agency activities. When the County report of tax increment for FY 2007-08 is received in October, the expenditure budget and fund balances may be adjusted, if needed.

MSUC (Downey/Ovrom) moved upon consent that the Agency Board accept the reviewed report, approve the proposed budget, adopt A RESOLUTION OF THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF CORONADO, SAN DIEGO COUNTY, CALIFORNIA, APPROVING AND ADOPTING ITS BUDGET FOR THE FISCAL YEAR 2007-08, and affirm that personnel costs and related expenses paid from the 290 Fund are necessary. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by the Agency as RESOLUTION NO. CDA-189.

AYES: Downey, Monroe, Ovrom, Tanaka, and Smisek

NAYS: None

ABSENT: None

ABSTAIN: None

6b. Adoption of Resolution Requesting the City Council to Appropriate and Loan Funds to the Community Development Administrative Fund. The administrative expenses of the Agency are paid from tax increment revenues. According to the Agreement for Cooperation entered into by the City of Coronado, the Coronado Unified School District and the Community Development Agency, the general administrative costs incurred by the Agency shall be charged one-third (1/3) to the City Debt Service Fund and two-thirds (2/3) to the School District Debt Service Fund. The City Council has authorized and the Agency accepted prior loans for administrative expenses as needed to meet budget obligations in prior fiscal years. The Agency's auditor, Diehl Evans & Co. has recommended continuation of this practice as it clearly established the Administrative Loan as a debt of the Agency and confirms eligibility for the use of tax increment revenues to repay that debt to the City in conformance with redevelopment law requirements.

MSUC (Downey/Ovrom) moved upon consent that the Agency Board adopt A RESOLUTION OF THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF CORONADO, SAN DIEGO COUNTY, CALIFORNIA, REQUESTING CITY COUNCIL TO APPROPRIATE AND LOAN FUNDS TO THE COMMUNITY DEVELOPMENT AGENCY ADMINISTRATIVE FUND TO MEET BUDGET REQUIREMENTS in the amount of $415,096.00. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by the Agency as RESOLUTION NO. CDA-190.

AYES: Downey, Monroe, Ovrom, Tanaka, and Smisek

NAYS: None

ABSENT: None

ABSTAIN: None

6c. Consideration of a Request from the Coronado Unified School District to Adjust Fund 493750 (Coronado Unified School District Capital Projects Development Fund) of the Community Development Agency of the City of Coronado Fiscal Year 2006/07 Budget. The CUSD requested budgeting of additional interest earnings of $792,000 from the District's share of previous bond issuances that were available to budget for eligible projects. The CUSD budgeted $250,000 for architectural and consultant work related to designing a parking structure.

The CUSD has requested to reallocate $240,000 of this previously budgeted money for other projects, such as those at Village Elementary, Coronado Middle School, Strand Elementary, and Coronado High School.

MSUC (Downey/Ovrom) upon consent to approve the requested adjustments to the budget in fund 493750.

AYES: Downey, Monroe, Ovrom, Tanaka, and Smisek

NAYS: None

ABSENT: None

ABSTAIN: None

The CDA meeting recessed at the end of the Joint Public Hearing on Item 5a to allow the City Council meeting to continue. The meeting was called back to order at 6:26 p.m. for oral communications. Being none, the meeting was adjourned.

6. ADJOURNMENT: The Agency adjourned at 6:27 p.m.

Approved: July 3, 2007

/s/___________________________

Tom Smisek, Chair

Attest:

/s/______________________________

Linda K. Hascup, Agency Secretary