12/18/07 City Council Minutes

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Date of Record: 2007-12-18
                                                                                                    MINUTES OF A

REGULAR MEETING OF THE

                                                                                              CITY COUNCIL OF THE

CITY OF CORONADO

                                                                                                   Coronado City Hall

1825 Strand Way

Coronado, CA 92118

Tuesday, December 18, 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

Deputy City Attorney Hilda Mendoza

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 December 3, 2007, and the Regular Meeting of December 4, 2007, were approved as submitted. The reading of the minutes in their entirety was unanimously waived.

MSUC (Downey/Monroe) moved that the City Council approve minutes of the Special Meeting of December 3, 2007, and the Regular Meeting of December 4, 2007, a copy having been provided Council prior to the meeting, as submitted.

AYES: Downey, Monroe, Tanaka and Smisek

NAYS: None

ABSTAINING: Ovrom

ABSENT: None

4. CEREMONIAL PRESENTATIONS:

4a. Proclamation: Edward W. Kleeman Day. Mayor Smisek presented a proclamation to Senior Planner Ed Kleeman to recognize him for his thirty-year career as a City Planner.

5. CONSENT CALENDAR: The City Council approved, adopted and/or accepted as one item of business Consent Agenda Items 5a through 5i with the addition of Items 11e and 11g.

MSUC (Downey/Ovrom) moved that the City Council the Consent Calendar Items 5a through 5i with the addition of Items 11e - Review of Osprey Nesting Platform and Sign and Direction Regarding an Appropriate Location on Port District Lands within Coronado and 11g - Introduction of an Ordinance Adding Chapter 52.44 of the Coronado Municipal Code Related to State and City Video Franchises.

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. 10062122 thru 10062367 audited and approved by the Audit Committee, provided there are sufficient funds on hand. The City Council approved the warrants.

5c. Award of Contract to Workplace Services, Inc. to Replace the Carpet in the Clubhouse Restaurant and Event Rooms, Administrative Offices and Conference Room, and Pro Shop and Women's Club Room. In response to the published request for bids, three (3) contractors submitted proposals.

Base Bid Alt. 1 Alt. 2 Total

Spectra Contract Flooring $27,972.00 $3,993.00 $12,721.00 $44,686.00

So-Cal Carpet & Floor $29,960.00 $4,620.00 $16,250.00 $50,830.00

Workplace Services, Inc. $26,790.00 $3,550.00 $12,195.00 $42,535.00

Workplace Services, Inc. submitted the low bid. Workplace Services, Inc. is a certified installer of Lees Carpet, the manufacturer of the specified carpet. Lees Carpet will warranty all labor by Workplace Services, Inc. in addition to their manufacturer's warranty. The City Council awarded the contract to Workplace Services, Inc. in the amount of $42,535, which includes $26,790 to replace carpeting in the clubhouse restaurant and event rooms; $3,550 to replace carpeting in the Administrative offices and conference room; and $12,295 to replace carpeting in the pro shop and women's club room.

5d. Approval of Revisions to the City of Coronado 2008 Legislative Policy Guidelines. The Legislative Policy is utilized as a guideline to direct appropriate positions and forward position letters to members of the State and Federal legislatures in urgent situations. All measures are analyzed and reported to the City Council. When there is a discrepancy in the City of Coronado's Legislative Policy Guidelines and the proposed measure, the measure shall is submitted to the City Council for action, regardless of the urgency. The City Council accepted the proposed revised Policy Guidelines and adopted the document as the City of Coronado Legislative Policy Guidelines for 2008.

5e. Acceptance of Fiscal Year 2006-07 Annual Report of the Community Development Agency of the City of Coronado. The CDA Annual Report includes a copy of the FY 2006-07 State Controller's Report, which provides a fiscal statement and summary of information relating to the CDA's activities affecting housing, a report of the CDA's accomplishments for FY 2006-07, and a final draft of the CDA's audited Comprehensive Annual Financial Report (CAFR). The CDA approval includes authorization for the Executive Director to make any revisions and technical corrections necessary prior to transmittal of the final Report to the State. This item is also on the CDA agenda for today's meeting. After approval by both the CDA Board and the City Council, the State Controller's Report will be submitted to the State Controller's Office and the State Department of Housing and Community Development by December 31, 2007 in compliance with redevelopment law. The City Council received and filed the Fiscal Year 2006-07 Annual Report of the Community Development Agency of the City of Coronado (CDA).

5f. Approval of a Resolution of the City Council of the City of Coronado Accepting a Grant of Easement Agreement from Hotel Del Partners, LP to the City of Coronado for Public Pedestrian Passage along Orange Avenue at 1500 Orange Avenue. As a condition to the Hotel Del Coronado Development Agreement for implementation of their Master Plan and more recently as a condition to the Hotel's subdivision map to permit the sale of condo hotel units, the property owner was required to make certain streetscape public improvements. The public improvements included new street lights, street trees, additional on-street parking spaces and eight-foot sidewalks with new seven-foot landscaped parkways between the curb and the sidewalks. A portion (approximately 6' x 200') of the newly installed sidewalk along Orange Ave. from the intersection of RH Dana Place and Orange Avenue to Grande Hall is on the private property of the Hotel and requires an easement to the City to ensure the public the legal right to traverse all portions of the new sidewalk. The City Council adopted A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CORONADO ACCEPTING A GRANT EASEMENT FROM THE HOTEL DEL PARTNERS, LP TO THE CITY OF CORONADO FOR PUBLIC PEDESTRAIN PASSAGE ALONG ORANGE AVENUE AT 1500 ORANGE AVENUE. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by Council as RESOLUTION NO. 8265.

5g. Renewal of Contract with The PMA Group, Inc. for Federal Legislative Advocacy Related to the State Route 75/282 Transportation Corridor and Transbay Wastewater Projects. The agreement includes the goals and objectives provided by The PMA Group, Inc. as the 2007 scope of work for lobbying the Transportation Corridor Project (TCP) and Transbay Wastewater projects. The PMA Group, Inc., through teleconferencing with City staff, is preparing for the 2008 legislative cycle to continue to build on the City's efforts to identify and refine both the short-term and long-term objectives for support and funding of the TCP, Transbay Wastewater project and other projects as identified.

The most critical long-term objectives for the TCP are: 1) To obtain annual appropriations to achieve full funding for the next project phase; 2) To gain support and funding for the project from other Federal agencies, (DOD, DOT, DHS); and 3) To continue to position the North Island Access Tunnel into the subsequent Transportation Authorization Bill in order to assure ongoing funding for the construction phase of the project. In 2007, PMA and the City have also been actively seeking an annual appropriation to augment funding for the TCP design phase referred to as Plans, Specifications and Engineering. Congressional hearings are still underway on annual appropriations.

All other short-term objectives support the long-term objective. The primary short-term objective is to ensure release of the FY 2007 federal appropriations. The City will use these grants to leverage additional matching funds from other potential sources. Other 2007 objectives include continued liaison and coordination with U.S. Navy Headquarters, Department of Defense and the Transportation Department. Continued coordination with Congressional committee staff and members is critical to laying the groundwork for inclusion in the Transportation Authorization Bill. In addition, PMA is available to assist the City on other federal issues as they arise, including continued pursuit of funding for the Transbay wastewater system. The City Council approved the contract with The PMA Group, Inc. and authorized the City Manager to execute the contract documents.

5h. Reappointment of One Incumbent Member to the Serra Cooperative Library Advisory Board. Ms. Elizabeth Ingram was appointed to the Serra Advisory Board on December 7, 2004 for a two-year term. In 2006 the term for this board assignment was extended an additional year to match the terms of all other regular commissions and committees. Ms. Ingram's first term will now expire on December 21, 2007, and she is eligible for reappointment for a second three-year term to expire on December 31, 2010. Pursuant to the City Council's policy, Ms. Ingram was contacted and has affirmed her desire to be reappointed to the Serra Cooperative Library Advisory Board for this term. The City Council reappointed Elizabeth Ingram as the City's representative to the Serra Cooperative Library Advisory Board to complete a term due to expire December 31, 2010.

5i. Approval of Draft Letter Regarding Environmental Impact Report, Airport Master Plan, San Diego International Airport. The Master Plan depicts the same improvements that have been presented to the region for the past five or six years regarding upgrades needed to address the projected air travel demand until 2015 at the existing airport. Although no negative environmental impact to Coronado was identified, at its meeting of November 20, 2007, the City Council authorized Mayor Smisek to prepare a letter commenting on the Airport Master Plan regarding land use, transportation and long term functionality. The City Council approved the letter as drafted.

6. ORAL COMMUNICATIONS: None.

7. CITY MANAGER:

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

8. PUBLIC HEARINGS:

8a. Joint Public Hearing of the Community Development Agency and the City of Coronado: Consideration of Adoption of a Resolution to Approve the First Amendment to 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, provided the staff report. She explained that the proposed amendment is regarding the renovation of the 16 units at 525 Orange Avenue for affordable housing. It affects the term of the lease and the amount of the building loan promissory note. These changes are financially neutral to the Agency and they are proposed in order to satisfy IRS requirements for the tax credit partners. That is why Coronado Interfaith Housing Corporation has requested them. Staff is recommending approval.

Mayor Smisek clarified that, at the end of the lease, the land and improvements all belong to the City. He opened the public hearing, and seeing no one wishing to speak on the item, the public hearing was closed.

MSUC (Tanaka/Monroe) moved that the City Council adopt 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. 8263.

AYES: Downey, Monroe, Ovrom, Tanaka and Smisek

NAYS: None

ABSENT: None

8b. Public Hearing: Second Reading for Adoption of an Ordinance of the City Council of the City of Coronado Amending City of Coronado Municipal Code Title 61, Storm Water Runoff System Management and Discharge Control, Including Chapter 61.04, Storm Water Sewer System, Chapter 61.08, Discharge Regulations and Requirements, Chapter 61.10, Standard Urban Storm Water Mitigation Plan, and Chapter 61.12, Inspection and Enforcement, to Comply with the Requirements of Regional Water Quality Control Board (RWQCB) Order No. R9-2007-0001, Issued January 24, 2007.

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

MSUC (Ovrom/Monroe) moved that the City Council adopted AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CORONADO, CALIFORNIA, AMENDING CHAPTERS 61.04, 61.08, 61.10 AND 61.12 OF CORONADO MUNICIPAL CODE TITLE 61, STORMWATER AND URBAN RUNOFF MANGEMENT DISCHARGE CONTROL TO MEET THE REQUIREMENTS OF THE RWQCB PERMIT NO. R9-2007-0001. The Ordinance, having been placed on First Reading on January 4, 2005, was read by Title, the reading in its entirety unanimously waived and adopted by Council as ORDINANCE NO. 1989.

AYES: Downey, Monroe, Ovrom, Tanaka and Smisek

NAYS: None

ABSENT: 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 several items from the Port Commission meeting the previous week. A Board policy was adopted for environmental sustainability which is the beginning of the Port's attempt to get its hand around LEED. The Port approved the redesign of the paddle wheeler restaurant, Ruben E. Lee, to become a 900 seat restaurant when rebuilt. Another extension was given to the group redeveloping the historic police headquarters near Seaport Village. The demolition on Peohe's pier is now complete. Adm. Spane mentioned that he provided a number of Holiday Bowl tickets to Mr. Tanaka who passes them on as a reward to deserving high school students. Adm. Spane reported on a major issue regarding North Grande Caribe Isle and Mr. Ralph Brienza's current situation. The Brienza family has entered into an agreement with SCI of Los Angeles to assume the Brienza debt and taken, as collateral, the lease or at least a part of the lease. SCI Corporation's stated purpose is to develop a premier destination resort hotel that will mutually benefit the local community and the City of Coronado. There is no requirement for the Port to evaluate the SCI Corporation financially or otherwise until and unless some development program is put forward. He disclosed that the developers have approached him. Admiral Spane has insisted that all stakeholders be present for such a meeting - the City of Coronado, Coronado Cays Homeowners' Association, and the Port staff at a minimum. To date a time has not been agreed upon to meet. He feels that whatever project is done it needs to be done out in the open and with everyone involved.

Councilmember Monroe noted that there was a default notice on the Brienza Loan for two weeks running in the Eagle. Admiral Spane commented that a few hours before the foreclosure auction was to occur this company took it off the market by assuming the debt. He assumes that the debt might be a little different than owning the lease. He understands that the collateral for the debt was the lease.

10b. Recommendation from the Traffic Operations Committee to Adopt a Resolution to De-Designate Route 4 (from Orange Avenue to Gate 2 NAS North Island Via First Street) and Route 5 (from the San Diego-Coronado Bridge, North on Glorietta Boulevard, West on Second Street, North on A Avenue, then West on First Street to Orange Avenue) as Designated Truck Routes and Modify Route 1 to Exclude the Portion of Orange Avenue Between First Street and Third Street.

Mayor Smisek and Councilmember Downey recused themselves from participating on this item due to the proximity of their personal properties. Councilmember Monroe took over as chair.

Ed Walton, Principal Engineer, provided an outline of the staff report.

Councilmember Tanaka asked Chief Scanlon if it would be reasonable to pull trucks over to inform them that this is no longer a truck route.

Lou Scanlon, Director of Police Services, explained that, in light of the proposed change, staff has considered possible actions to take. One of the things that could be done would be to notify North Island to notify their vendors that the truck route has been dedesignated and also to notify Caltrans to notify the commercial truckers that this is no longer a designated truck route. Signs could be put up as well.

Miles Harvey, 1099 First Street, stated that he has been before the City Council for over 17 years on this issue. He thanked everyone for their efforts. The residents on First Street know that there has been a dramatic improvement on their street and it will continue to improve.

Ricardo Johnson, 822 First Street, thanked the City Council and added his comment that he has also been pleading for help and a solution on this for a long time. He is delighted to hear that the City is concerned about environmental impacts.

Wendy Miller, 101 I Avenue, spoke in support of having the truck route removed from First Street. She requested the replacement of the stop signs at First and I Avenue and the addition of a crosswalk and a pedestrian warning sign to help eliminate a lot of the problems that exist for pedestrians in that area.

Councilmember Ovrom thanked Mr. Harvey for reminding everyone that this has taken a long time. He asked that the stop sign issue be sent to the City Manager for review.

Mr. Monroe commented that he spoke with the Commanding Officer of the Base who agrees with and encourages this action because he wants the trucks to enter at Third Street. He acknowledged that generally, the City Council does not move traffic from one street to another. The reason for this movement is the opening of the Third Street Gate.

Mr. Tanaka stated that he is happy to support this change. It has been a long time coming. He emphasized that his goal is not to tell Third Street and Fourth Street residents that they deserve trucks more. It is just that there is no reason to direct trucks from the Bridge, to down First Street, making three or four turns along the way. The same is true for those coming down the Strand. It is logical that trucks should use the shortest route possible.

MSUC (Ovrom/Tanaka) moved that the City Council adopt A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CORONADO, CALIFORNIA, AMENDING EXISTING TRUCK ROUTES WITHIN THE CITY OF CORONADO. The Resolution was read by Title, the reading in its entirety unanimously waived and adopted by Council as RESOLUTION NO. 8264.

AYES: Monroe, Ovrom, Tanaka

NAYS: None

ABSENT: Downey, Smisek

Mayor Smisek and Councilmember Downey returned to the dais.

11. CITY COUNCIL BUSINESS:

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

Councilmember Tanaka attended the Coronado Police Officer's Association holiday party with the rest of the City Council and attended the Holiday Parade, riding in the recycling truck with Councilmember Downey. He attended the City's holiday party and briefed the Chamber Board.

He reported on developments in the Fire Dispatch Agency that he chairs. He had previously reported the possibility that Chula Vista would rejoin the Agency. Mr. Tanaka had met with Mayor Cox on more than one occasion on this topic. However, he has learned that their Chief will not make that recommendation. In addition with the new political leadership on their City Council, if their staff recommends against it, the city council will be in a tough position to overrule. In the end, he thinks that Fire Dispatch is better off without Chula Vista due to the negative association they have had and to misinformation that has been put out regarding response times by the JPA. The JPA and the chair of the Board of Chiefs have been very active in counteracting this misinformation and in providing a more accurate assessment of response times to ensure that Heartland does not suffer as part of this public process. Chula Vista will now contract with San Diego Fire.

Councilmember Downey asked if this is a permanent decision. Mr. Tanaka suggested that it could be revisited in five years depending on how the new contract with San Diego meets their needs.

Councilmember Ovrom spoke to the Soroptimists, attended a Metro JPA meeting with Mayor Sanders to talk about upcoming issues regarding wastewater, watched the Holiday Parade, attended the City holiday party, a League of California Cities meeting, a meeting of the San Diego MAC Board, a Tunnel Commission meeting, the Chamber Christmas Sundowner, a School Board meeting, met with Bruce Boland and Jack Miller, Airport Commissioners, on their upcoming plan, and attended a meeting of the Tunnel Action Team.

Councilmember Downey participated in the parade and rode, with Councilmember Tanaka, in the front of the EDCO recycling vehicle. She did so as the result of winning a raffle at the Chamber of Commerce. She attended the City holiday and employee recognition party, the Lions Club Christmas party, the Chamber of Commerce Christmas Party, the Police Officer's Association holiday party with the other council members, a meeting of the SANDAG Shoreline Working Group to send up for approval by the SANDAG Board the new beach replenishment project. She advised that it is time to replace the sand on the beaches again. Coronado is a recipient of the sand only in that the sand that goes on other beaches eventually washes off and flows onto Coronado's beaches with the tides. The goal is to try to keep the beaches in their natural state despite all the manmade structures. She chaired the SANDAG subcommittee Environmental Mitigation Program Committee and reported that an agreement between SANDAG, US Fish & Wildlife, California Fish & Game has been approved at the staff level. It will now go before the SANDAG Board, the state US Fish & Wildlife, and the California Fish & Game offices to allow hundreds of millions of dollars from the TransNet initiative to go into plans to restore habitat around San Diego over a span of 40 years. The agreement is regarding the method that is going to be used and what is eligible for funding. SANDAG has always said that the voters didn't vote to give hundreds of millions of dollars to fix the habitat. The voters said the habitat has to be protected while the region must expand transportation due to continuing increased need.

Councilmember Monroe attended a meeting with Councilmember Downey, Mayor Smisek, Jim Benson, and Bill Cecil about the LEED program, the Police Officers' Association dinner, the 11 Star Reception at North Island, an MTS Board meeting, the Senior Center Christmas Open House, the Senator Ducheny Holiday Party, the Tennis Association Holiday Party, and the City Holiday and Employee Recognition Party. He attended a meeting of the Carriage House Committee and reported that it has now finished its work and is sending the report to the Planning Commission. It will come to the City Council in February or March. He attended a meeting with City Manager Mark Ochenduszko and Chris Grant to discuss the Senior Center, a SANDAG Transportation meeting and a SANDAG Policy Board meeting where the entire meeting was dedicated to the San Diego Regional Economic Prosperity Strategy. He has been co-chairing that group with Julie Meyer Wright. This is the third writing of the strategy. Every five years they come out with some areas to focus on to improve the standard of living in the San Diego region.

Mayor Smisek attended the Holiday parade, the Police Officer dinner, went to SDMAC at the Admiral Kidd Club to receive an award for the City Council and Coronado for supporting the Navy in the region and the third carrier. He attended, with the City Manager and Rachel Hurst, a Sharp Hospital Executive Team meeting for funding needs, the Christmas tree lighting with his granddaughter, the Secondhand Prose Book Store Sale where there was great success, the City employee recognition Christmas Party, the CHA Volunteer luncheon, the new shoe store opening at 942 Orange, and a Golf Course Committee meeting to discuss the improvement project. He met with airport commissioners Bruce Boland and Jack Miller, with Councilmember Ovrom to discuss the airport master planning. He said there is more involved than the environmental impacts they have come up, although part of it has an emphasis on Harbor Boulevard, at the Highway 5 interchange, and a transportation hub where there will be environmental impacts.

Councilmember Downey added that she had discussed SANDAG's comments to the Airport Plan and they had said the same thing. They were only looking at where they are now and what they are expecting for the next 10 years. They weren't looking at where they think they will be in the future.

Councilmember Ovrom commented that there is a lot of emphasis on adding terminals on the south end that will adversely impact Harbor Drive. They haven't shown what they are doing on the north side.

11b. Consideration of Appointment of One New Member to the Planning Commission. Mayor Smisek explained the voting procedure for appointments. A series of votes are taken in a process of elimination, with the final nomination made when one candidate remains. The City Clerk read the list of applicants as follows:

Kevin Lee Brenden

Harry DeNardi

Caryn Louise Goot

Nancy D. Santos

Douglas Mustin St. Denis

John Tato, II

John Tato, 350 F Avenue, introduced himself to the City Council and the public.

Nancy Santos, 279 C Avenue, introduced herself to the City Council and the public.

After the series of votes, Doug St. Denis was nominated.

MSUC (Smisek/Ovrom) moved that the City Council appoint Doug St. Denis to a three-year term on the Planning Commission due to expire December 31, 2010.

AYES: Downey, Monroe, Ovrom, Tanaka and Smisek

NAYS: None

ABSENT: None

11c. Appointment to Fill One Vacancy on the Civil Service Commission. Mayor Smisek explained the voting procedure for appointments. A series of votes are taken in a process of elimination, with the final nomination made when one candidate remains. The City Clerk read the list of applicants as follows:

Caryn Louise Goot

Howard B. Somers

Howard Somers introduced himself to the City Council and the public.

After the series of votes, Howard Somers was nominated.

MSUC (Smisek/Downey) moved that the City Council appoint Howard Somers to a three-year term on the Civil Service Commission due to expire December 31, 2010.

AYES: Downey, Monroe, Ovrom, Tanaka and Smisek

NAYS: None

ABSENT: None

11d. Response to City Council Direction to Review Options Related to the Provision of Financial Assistance to Sharp Coronado Hospital. Rachel Hurst, Director of Redevelopment and Housing, explained that this report is in response to the City Council request to review options related to the provision of financial assistance to Sharp Coronado Hospital. The report summarizes three potential options, which are the establishment of a municipal hospital, establishment of a local health care district, or acquisition of the hospital property. Establishment of a municipal hospital or a local health care district would both require a petition and an election. In the case of a municipal hospital a board of directors would be appointed. In the case of a local health care district a board of directors would be elected. In both cases a two-thirds vote at election would be required to provide for a levy of new taxes to support the financial operations of either of these two options. For purchase of the hospital, although an election would not be required, an advisory vote is recommended if the City Council further considers that option.

Councilmember Ovrom clarified that a municipal hospital would be owned and operated by the City. There is only one of those cases and that is in Avalon on Catalina Island. The City has not only the financial liability but any liabilities that are associated with that option. Ms. Hurst suggested that the operation may be contracted out. The establishment of a municipal hospital is what allows a City to be in the hospital business, which is not a normal municipal function unless this procedure is gone through to establish the municipal hospital. Mr. Ovrom went on to ask about a local health care district and whether that may or may not include ownership. It could be a choice to own the hospital or a choice to simply set up the funding mechanism, the tax mechanism, to be able to fund the operations of the hospital. Ms. Hurst responded by saying that a funding mechanism would be mandatory in order to establish a local health care district because it would have no other potential source of funding. The geographic area could be greater than the boundaries of the city. Mr. Ovrom added that if that was a choice the city made then it would be a board of directors that runs the district. Ms. Hurst clarified that it would be an elected board of directors. That board of directors would have the responsibility for overseeing the cash flow to the hospital even though some other contractor could be utilized to run the hospital. Ms. Hurst added that the district presumably would have a contract with a hospital operator or other entity. Mr. Ovrom moved on to discuss the option of purchasing the hospital land and improvements. The City would become an owner in that, but they again could contract out the operation of the hospital. There would be no tax obligation for that.

Councilmember Downey pointed out that, if the third option were pursued, staff is not recommending that Coronado operate under that scenario, but rather lease back to someone else to run the hospital, as opposed to the first two options. Ms. Hurst added that in all three cases the City could contract with someone else to operate the hospital and she thinks that would be expected.

Councilmember Tanaka commented that the City enters into contracts for service for various things. He wondered, if there was a target amount of how much money the hospital is losing on average, perhaps the City could create a contract for specific services for a certain amount of money, and questioned if this is a legal way to deal with this.

City Manager Mark Ochenduszko responded by saying that the City would have as difficult a situation as it does with the hospital TOT in avoiding a gift of public funds. There would clearly have to be a municipal benefit to create the nexus that would allow for contracting for some service and he does not know what that would be.

Councilmember Monroe pointed out that these options essentially have the City own the hospital. There is currently an initiative out there for a TOT increase of 3% with a very strong legal opinion saying it is illegal because it is a private entity. However, if the City takes over ownership, it seems like it makes the initiative legal. How does the initiative play into this decision right now?

Deputy City Attorney Hilda Mendoza reported that one of the main issues with the TOT is that there is just a matter of collecting these funds and handing them over to this private entity. Ms. Hurst and staff looked at options in order to be able to go about it in a legal matter.

Mr. Ochenduszko explained that there are three options that are identified that have some viability and they vary in viability. The first option, to form a municipal hospital, is a long shot. There is one municipal hospital in California on Catalina Island at Avalon under far reaching rules given their lack of proximity to the mainland. It was formed at a time different from now, under previous law. The local health care district is a separate, special governmental entity. It is a separate district. If that were formed it would result a petition of the voters and an election. It would have to go through a LAFCO incorporation process and LAFCO would require that there be some sort of a parcel tax that went along with it. The hospital local care district would not be governed by the City of Coronado. It would be a separate entity, a separate government. Its boundaries could be smaller or larger than the City of Coronado's; they needn't be co-terminus with the City of Coronado. It would be a separate district with its own directly elected hospital board. That board could either contract for the service or could provide the service if it chose to do so. Commonly, health care districts contract for the service. The third option is a property transaction. It would require the City of Coronado to purchase the real property from the Hospital Foundation. There would be no subsidy to Sharp Coronado Hospital. It would simply be a property transaction. In other words, the City would be using its cash assets/reserves to acquire real property and hold that real property probably through the mechanism of the Redevelopment Agency. Again, the City would not be participating in providing hospital services.

Councilmember Monroe referred to Mr. Ochenduszko's comment that LAFCO would have a parcel tax or a property tax to go along with that, and asked why wouldn't TOT be the source of revenue. Mr. Ochenduszko explained that TOT is a municipal form of revenue. A parcel tax would go along with the formation of a district and would be gathered by the district and it is a viable source of income for a hospital district, a separate governmental entity empowered by state law to provide hospital services.

Councilmember Downey added that, after reviewing the staff report, she looked at a fourth alternative which would be the fact that it is arguably a blighted building and had the City, back when it formed the CDA, put that as part of the blighted buildings, CDA funds could have been used. It is a fourth option. However, staff did not look into that and some people have asked her why CDA funds couldn't be used to retrofit the building.

Mayor Smisek inserted that the City is already doing that by providing $10 million for hospital capital improvements. The discussion is operating funds, not construction funds. They are two separate pots of money.

Ms. Downey said that she understands that but the hospital needs more than the City's $10 million. They haven't been as successful as everyone had hoped. Mayor Smisek clarified that they are right on schedule and have done very well on the construction part of it. It is a matching grant and he believes they have even a bit more money at this point. The problem lies, and what the TOT addresses, with the operating funds. The School District is going through the same situation. Staff and the City Manager have developed these options because these allow the potential of a conversion. If the City purchased that land from the Foundation, the Foundation would then have a pot of money that they can use in whatever way they want or the way the Foundation says they can use it.

Miles Harvey, 1099 First Street, feels this is a fundamental problem for the City. Everyone wants that hospital to be viable. The whole question is the fact that it is not now financially viable. There has got to be an infusion of money in some way. It is such a big problem that he suggested the formation of a committee of Council members and unaffiliated individuals from the community who have not served on the Hospital Board or the Foundation Board but have an interest in seeing that the hospital is maintained. This is an extremely complex issue.

Victoria Eckert Schreider, 345 C Avenue, District Rep for Senator Ducheny said she is aware that there will be a big issue for the entity that actually runs the hospital now for the second seismic deadline. Professionally she knows this has been a concern of Senator Ducheny's all around for the South Bay. The idea of health care districts has been thrown around as an option as well as some of the other options that have been discussed by the City Council. She offered her assistance on this matter. This is a problem throughout the County of San Diego.

Councilmember Tanaka said that the problem he is looking to identify is what is the gap? How much money is the hospital losing per year on average? He has heard figures as high as $3 million and recently $800,000. That is an important number. Once it is agreed that is the problem then one can address how to fix it. He appreciates the staff report because it did what the City Council asked - it tried to come up with some ways to address a funding shortfall. One of the problems he has with the TOT suggestion is that pulling 3% or $3 million a year is pulling a number out of thin air. It is not a thoughtful way to address this because it doesn't identify what the problem is and it doesn't identify to what extent 3% or $3 million going to the hospital will fix it and it also has no safeguards in it. What if the hospital gets worse? What if it loses more money and hemorrhages to the point that the City can't save it. The City won't be able to get its $3 million a year back. He is much more interested in finding a way, if the City does agree to help the hospital, that can be done willingly and in such a way that the City could still cut its losses. He feels that there is a national health care problem. He is worried that the health of the City's budget is going to get confused with something that is a national problem. The reason the City's hospital is losing money is not an anomaly but it is the victim of this larger problem. He thinks that most Americans would acknowledge that there are problems in the health care system and they would probably acknowledge that the country hasn't figured out to fix those problems. Coronado is fortunate that it might be able to come up with some ways to help its own local hospital. He is interested in figuring out what can be done to at least help the hospital not lose money. That might be a simple way to deal with the problem locally and take advantage of the fact that the City is doing well. That doesn't lock the City in to a TOT percentage or fixed amount. He is worried because he doesn't know that the City can fix the problem. One of the things that troubles him is that the City Council has already pledged $10 million to the hospital. That hasn't even touched this problem. There is a lot the City could do locally with $10 million. Everyone agreed that the hospital was important enough to make that pledge. Now it seems that there is still a great need and he doesn't know if it will work. Too much is out of the City's control. He doesn't know if it makes the most sense to keep pouring taxpayer money in year after year on something that might just be a bad business deal in the long run. He is committed in the short term to finding a way to help them meet the gap. He would be interested in seeing if there is some way to come up with a novel contract for services because that would at least give a vehicle to get money into the hospital. Then the contract could be cancelled if the City is not satisfied that the aid is doing something useful. He has a bad feeling that the voters would not approve a health care district. It would be interesting because then the City could really gauge whether or not the community supports the hospital.

Mayor Smisek clarified that the City Council is simply receiving this report. There is a closed session item that deals with parts of this discussion scheduled for today's meeting.

Councilmember Monroe commented that the City Council is just looking at one issue here. There are other issues around Coronado that could also play. He watched the School Board meeting where there was a report that said that the new pool is ready to open in two weeks and the ISF is in default. They will not be able to operate the pool. The shortfall is expected to be approximately $200,000 to $300,000 a year. They are going to be looking for money, too.

Councilmember Ovrom would like to receive the report but is not sure about filing it. He wants to keep it in the forefront. He appreciates the fact that the staff did look this up. They came back with at least three options. The City Council may not like the answer, but they are legal answers. Two out of the three would require some kind of legislative work on the part of the City and probably a parcel tax or property tax of some size that people are typically not happy with.

The City Council received the report.

11e. Review of Osprey Nesting Platform and Sign and Direction Regarding an Appropriate Location on Port District Lands within Coronado. The Port District recently contacted the City to determine the preferred location for the structure and sign that would be located on Port District lands within the City. The platform will consist of a single pole, between ten and fifteen feet in height, topped with a platform that is approximately four feet wide. The nest platform is fairly simple and "clean" but the Ospreys tend to build very sloppy, overhanging nests with a variety of material on top. The sign will designed in the shape of an Osprey and will be approximately 4' and 5' wide.

Various locations have been explored: Emory Cove, south of Emory Cove at the curve of SR 75, County Ecological Area, Tidelands Park, South Grand Caribe Isle and Coronado Cays, and the Golf Course. Emory Cove was opposed since the City just undertook a project to remove utility poles and overhead wires within this vicinity and it would be adding visual clutter back to the vicinity. South of Emory Cove and the County Ecological Area were determined unacceptable by the Port District due to the presence of salt marsh vegetation. Tidelands Park was not a preferred location given the high volume of children, kite flying and various activities and events that occur at the park. While South Grande Caribe Isle in the vicinity of Shoreline Park at the Coronado Cays may have been a good location given the natural environmental conditions of the site, existing pedestrian pathway, and proximity to the bay for the Osprey, the structure was opposed by the residents of the Coronado Cays. The last alternative explored is the Golf Course. Staff met with Dave Jones, Golf Course Director, in the field to determine the best location for the structure and sign. The structure and sign would be located on a bluff near the shoreline that would not interfere with golf play but would be viewable by golfers and boaters along the bay. The proposed location is outlined in the attached plan. The Port District also finds this an acceptable location. Under Consent, the City Council supported the project and proposed location for the platform and sign at the Coronado Golf Course in the vicinity of Hole Number 17.

11f. General Overview of the Leadership in Energy and Environmental Design (LEED) Program and Council Authorization to Submit New City Buildings for LEED Silver Certification. Councilmember Ovrom questioned why this needs to be done and asked what stamping the City with this LEED Silver Certification really does. He doesn't question that the City could have a basic premise on how it wants to design its buildings and that there is a desire to have them be efficient and will minimize the impact on the environment.

Bill Cecil, Capital Projects Manager, Engineering & Project Development, explained that the LEED Certification program is set up as a means to have an objective scoring system that takes into consideration many factors. It is pointed out in the staff report that there are five general areas to look at when a project is considered. One could argue that staff could take the same system and look at it and make their own value judgments. However, what it misses in that regard is that this is an outside organization that looks at it objectively. He won't apologize for what the City has done in the projects in the past because the City has followed many projects with similar types of things. The City applied for the design through SDG&E and leadership by design and the City has incorporated many savings through that organization. The City has also utilized sustainable materials in the building of City Hall and the Recreation Center. That is one way it could be done, however, going outside and having another organization do it from the beginning all the way to the end and more importantly, a year after the building is completed it is recertified to make sure that in fact the building is operating and maintained to meet that energy level. That is probably the most important factor. There is an outside organization giving the City a very objective view of how it is meeting these criteria. He feels it is a good program. As recently as 2002 there were only 20 buildings in the United States that had certification. Today there are 1100 and this momentum is building. The United States lags behind the rest of the world in getting into and trying to build sustainable structures. He thinks it is important to try to show that and that it is the right thing to do. The amount of money to put in a sustainable building is only about 2% more than a non LEED building, but you reap 10 times that over the lifespan of the building.

Councilmember Ovrom stated that he has trouble with seeking a seal of approval from an outside agency simply to say the City is doing its job.

Councilmember Downey feels there are two reasons to do this. The first thing is that it is the right thing to do and that the City has the ability, the money, and the expertise to do it.

Discussion ensued about whether or not solar was considered for the Glorietta Bay Master Plan and where that fits with LEEDS.

Ms. Downey continued by saying that the City is going to be handed this whether it wants this or not because the State is going to be changing requirements, as it changes its building codes, that all buildings, both government and private, by 2050, are going to be energy neutral. It behooves the City to start learning how to do that in an economic, effective manner. As the City has to start analyzing its greenhouse gas footprint in any future CEQA that is done, the City gets point for this. This is a way the City is addressing greenhouse gas. There isn't really a downsize to telling staff it would like to build to LEED requirements. It isn't asking an outside agency for permission. It isn't asking an outside agency to bless a City building and if they don't, the City won't build it. It simply gives direction to staff to please give the City buildings that comply with these recommended ways to save energy and then the City can get out in front and receive recognition for doing so. This is the City's chance to lead the way. She thinks the 2% is something Coronado can afford to do and should do as a City that has the ability to do it and as a precursor to what the City is going to be ordered to do.

Mr. Ovrom said that he is not interested in 'doing the right thing' just to put a label on it.

Councilmember Monroe reminded the councilmembers of the discussion back when they were looking at solar for the Glorietta Bay Civic Complex. It was reported to be cost effective and yet it wasn't, but it wasn't part of a major strategy. He needed a structure and strategy that it would have been part of. Recently he learned more about LEED and has seen some LEED buildings and what it has done to the culture of an area. That is what you try for. It is known that the Attorney General has already sued Riverside on their General Plan because they didn't consider carbon footprint. They came out with a three page letter to SANDAG and pointed out that there is a new Regional Transportation Plan with no consideration of carbon footprint. Mr. Monroe showed slides to illustrate the trends of the way things are going now. To him, this is a pay now or pay later scenario. The rules that everyone is going to have to live by are known. He applauds the structure that LEED gives because it is quantifiable and auditable.

Mr. Tanaka agrees with this particular recommendation. It is obvious that a lot of thought and effort goes into all the City's projects but one area the City has room for improvement in is in environmental design. He thinks Mr. Ovrom was hinting at that. Mr. Ovrom is inclined to move in a direction that would save energy. Mr. Tanaka thinks it is sometimes helpful to have an outside group give a second opinion. He is curious as to how many other cities in the County are doing this. He doesn't see a reason not to try to make buildings as sustainable as possible considering the fact that the City can afford it and as long as it doesn't put an objectionable price escalator into the project.

Mayor Smisek stated that he is very sympathetic to what Mr. Ovrom has said because, historically, Coronado has always moved in the direction of what is best for Coronado, not so that the City looked good to someone on the outside. Item 13a led him to believe a little of that. As far as LEED is concerned, if the City is doing it because it wants 'Silver Certification' or to have a LEED stamp of approval, he doesn't appreciate that, and he doesn't see that is necessary. If it is something that is helpful and if staff has said that they feel this would be beneficial to the City and that the City would save money and be a good neighbor, environmentally, he would be happy to support it. The only thing is that he wants to be sure that everyone understands that LEED is a voluntary rating program and that this is a goal, but if it hurts the City in any way, the City will discard it immediately and press on for the best for Coronado.

Mr. Monroe offered a suggestion. He is not sure where the silver certification came from because there actually are four steps. They can be certified as a LEED building; they can be silver, gold or platinum. It may be reasonable for the City to say, based on Mayor Smisek's comments, as a goal, that the City will work towards LEED certification and then as buildings come and get designed, the City may have some trade offs.

John Tato, 350 F Avenue, commented that there is a distinction between adopting the process and the rating system and submitting the building for certification. The State Department ascribes to LEED. Its buildings are LEED certified but it does not submit for certification as part of a LEED process. LEED is the only systematic approach for assessing the environmental implications of a building. It is a non governmental process and is a grass roots effort and deserves to be supported because it is a systematic and organized approach to doing this. He advocated that the City ascribe to LEED and then can reserve judgment as to whether or not to bear the expense of submitting for certification.

Ms. Downey referred to a meeting she had with City staff and Mr. Monroe where one of the discussion items was the idea of building to that standard. It is possible that the City could eventually have a staff member trained to certify LEED. She is not as concerned with the stamp, although she thinks the City should get some credit, as she is in the fact that the City should lead the way and set an example. As long as the City builds to those standards certification could come at a later date. If you don't build to those standards and you don't have someone helping ensure that those standards are being met, the retrofit is the problem.

Mr. Tanaka thinks there are two different things. Adopting a set of standards to build a building to is not a problem. That can be done without the dog and pony show. He doesn't see a problem in applying for certification later, but he also likes the idea of flexibility. The goal everyone shares is building the best building possible for Coronado.

MSC (Downey/Tanaka) moved that the City Council implement the LEED program silver certification for the new City buildings: Animal Care Facility, Boat House/Club Room, and Tennis Center on a trial basis.

AYES: Downey, Monroe, Tanaka and Smisek

NAYS: Ovrom

ABSENT: None

11g. Introduction of an Ordinance Adding Chapter 52.44 of the Coronado Municipal Code Related to State and City Video Franchises. Through Digital Infrastructure and Video Competition Act of 2006 (DIVCA), the state pre-empted certain areas of regulation, which were previously held by local government. By approving this ordinance the City will set up the new administrative structure as mandated by state law. AT&T has already started processing permits with the City to install new infrastructure in Coronado that will allow them to market new video services similar to those offered by Time Warner. The new infrastructure will eventually consist of approximately twenty-one metal boxes that must be within a certain distance from existing AT&T units to operate. Under Consent, the City Council introduced AN ORDINANCE ADDING CHAPTER 52.44 OF THE CORONADO MUNICIPAL CODE RELATED TO STATE AND CITY VIDEO FRANCHISES. The Ordinance was read by Title, the reading in its entirety unanimously waived and placed by the City Council on FIRST READING.

12. CITY ATTORNEY: No report.

13. COMMUNICATIONS - WRITTEN:

13a. Consideration of a Request from Councilmember Downey for the City of Coronado to Join the United States Mayors Climate Change Protection Agreement. Councilmember Downey explained the reasons for joining, referring to the letter included in the staff report. It is designing buildings to LEED standards to make them energy efficient is how a community can help meet Kyoto protocols, along with public information campaigns. The second is to urge state governments and the federal government to enact policies to meet or beat greenhouse gas emission reduction targets. The third is to urge Congress to pass the bipartisan greenhouse gas reduction legislation. She thinks that Coronado can set an example by signing this which says that Coronado supports trying to meet the Kyoto protocol goals to try to lessen the City's greenhouse gas footprint.

Mayor Smisek reviewed the history of this. Staff did a very thorough review as to how this would impact the City if it did this. Mayor Smisek's said he would like to do what is best for Coronado but not get into the situation where the City says it is going to do something and then doesn't. According to the agreement, the City will have to make some changes to be able to comply. If the City Council feels this is the way to go, the first question to the City Manager is what his feelings are about implementing it. The second part is that, if the City is going to do this, is there leeway. If the City signs the document and with the intention to do this, can it reserves the right, if it isn't working for Coronado, are there options that it won't be done in certain areas.

Ms. Downey agrees and doesn't think this requires that. She believes it talks about future equipment purchases. Coronado is doing almost all of this already. CEQA has addressed much of this. This is a good way to tell the residents that the City is trying so that they know that. This tells us what the City wants to do in the future. There is no requirement.

Councilmember Ovrom expressed the same concerns as with the LEED program discussed earlier. He is not sure whether this is just a bandwagon the City is trying to get on or whether it has some useful purpose. In reading the details of it, particularly about urging state and federal governments and Congress, it seems to him that if the people want the City to do that, they will let the City know. He cannot recall one person mentioning this to him in the last year or during the campaign.

Councilmember Monroe said that until recently the face of the environmental movement in the San Diego region has been one or two people. He sees that face changing. He sees a whole new group of leadership coming in and understanding that this is an important thing to sign up for. He is not sure all the residents of Coronado are clamoring for the City to do this, but on the other hand, it is time for the leadership of this City Council to turn and show where it thinks the residents of Coronado ought to be going. At this point he believes that six other cities in San Diego County have signed this. He would be very proud to have Coronado be in that company. He thinks that a lot of people are going to make a lot of changes in the years ahead on this one issue and if the City can lead and have that happen that would be great.

Councilmember Tanaka agrees with the sentiment. He is not interested in hurting the environment or polluting it but he thinks the Kyoto Protocol, to some extent, is irrelevant to Coronado politics. He recalled something Mayor Smisek said and believes that if you are going to sign something, you should mean it. This is a very detailed letter. This isn't just a pledge to be good. The more detailed it gets, the more worried he gets. He doesn't want to be a hypocrite. He feels that his job is to be a pretty good interpreter of what the community wants and if his interpretation is wrong enough the people let you know by electing someone else. This might go a little bit too far. He thinks it might be more productive for Coronado to come up with its own list of what it wants to do and then go do it. He doesn't have a problem with most of the things, but he does have a problem with a commitment to a laundry list of things that the City didn't develop. If the City developed its own list he wouldn't mention the Kyoto Protocol. The City tries to get energy star equipment and he supports that. He sees a problem with signing on the dotted line and only working toward it or potentially pulling out of it later. The other point of concern is that if this is a 'mayors' thing, there should be more mayors signing on the dotted line.

Mayor Smisek feels Mr. Tanaka hit the nail on the head. He takes exception to saying that Coronado is not leading in the community. The City has been the first in many things environmentally in the community. The City was the first to be using natural gas vehicles. The City has done many things such as getting electric cars for the City, buying hybrids, consulting with SDG&E, etc. He doesn't feel the need to step out and pump the City's chest on something that national people came up with. That isn't the way Coronado talks the rest of the time. Coronado is special and does things in a special way that is appropriate for the City and for the people in Coronado. The good news on the report is that the City is doing a lot of this. That came from the City Manager, City staff, previous city councils and this City Council. He thinks that the public knows the City does a lot of these things.

Barbara Denny, 841 D Avenue, applauded Mr. Monroe and Ms. Downey with their forward looking, future thinking attitudes and wanting to put actions behind their words. She is ashamed that Coronado hasn't already signed up on this. While she can understand that Mayor Smisek is reticent to join into the National Environmental movement, it is very disappointing to her and to many of her neighbors as well. There is a lot of talent in Coronado and a lot of potential and it is disheartening to hear an anti governmental attitude from certain City Council members. She urged the City Council to think about what Ms. Downey is saying.

Cindy Sanders, 816 First Street, doesn't see the benefit of Coronado signing on as a tag line to something. If the City is doing what it is doing as the best for Coronado and its people, signing into something that has a national connotation will just be a tag line. The job for the City and the City Council is to do the best for the City. If that is being done, the City doesn't need to be applauded by others.

Ms. Downey would at least like to learn what the City's greenhouse gas footprint is. The City doesn't know and that is because it is hard to figure out as a city. One of the things she plans to do when she takes over as chair of the Energy Working Group next year is to see if she can get the USD Energy Policy Institute help cities be able to determine that. She thinks that is the first step the City should take whether anyone tells it to or not. If the City is going to come up with ways to help prevent escalating the carbon the City is putting into the atmosphere it needs to know how much it is putting in now.

Mayor Smisek asked if the Navy would be disregarded in that evaluation for Coronado.

Ms. Downey responded that it would. The Navy has started figuring out its own. Also, the City has no control over those emissions.

Mr. Tanaka feels that this letter doesn't mean a lot to him because it isn't a practical matter of how the City is going to do something about this. He wants to focus on Coronado.

M (Downey) moved that the City Council join the United States Mayors Climate Change Protection Agreement

The motion died for lack of a second.

The City Council recessed to closed session at 5:33 p.m.

14. CLOSED SESSION:

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

AUTHORITY: Government Code 54956.9(a)

NAME OF CASE: Workers' Compensation Appeals Board Case Number: TBD

Joseph LaCorte

b. CLOSED SESSION: CONFERENCE WITH LEGAL COUNSEL -

EXISTING LITIGATION

AUTHORITY: Government Code Section 54956.9 Subdivision (a)

NAME OF CASE: Citizens for Preservation of Coronado Beach v. City of

Coronado, et al.

San Diego Superior Court Case No. 37-2007-00072013-

CU-MC-CTL

The City Council resumed the regular meeting at 6:24 PM. Deputy City Attorney, Hilda Mendoza, reported that direction was give to staff on Item 14a. She advised that at 6:12 p.m. Mayor Smisek recused himself, left the room, and did not participate in the discussion on Item 14b. Direction was given to legal counsel on that item.

15. ADJOURNMENT: The meeting was adjourned at 6:26 p.m.

Approved: January 15, 2008

/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, December 18, 2007

The Community Development Agency regular meeting was called to order at 3:20 p.m.

1. ROLL CALL:

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

Absent: None

Also Present: Agency Executive Director Mark Ochenduszko

Agency Deputy Counsel Hilda Mendoza

Agency Secretary Linda Hascup

After hearing the Item 5a jointly with the City Council's Item 8a, the CDA meeting recessed at 3:26 p.m. for the completion of the City Council meeting. The CDA meeting resumed at 5:33 p.m. to complete its regular business.

2. MINUTES: The minutes of the Regular Meeting of December 4, 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. 90003681 through 90003693 as audited and approved by the Audit Committee, provided there are sufficient funds on hand.

d. Agency Attorney: No report.

5. PUBLIC HEARING:

a. Joint Public Hearing of the Community Development Agency and the City of

Coronado: Consideration of Adoption of a Resolution to Approve the First Amendment to

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, provided the staff report. She explained that the proposed amendment is regarding the renovation of the 16 units at 525 Orange Avenue for affordable housing. It affects the term of the lease and the amount of the building loan promissory note. These changes are financially neutral to the Agency and they are proposed in order to satisfy IRS requirements for the tax credit partners. That is why Coronado Interfaith Housing Corporation has requested them. Staff is recommending approval.

Agency Chair Smisek clarified that, at the end of the lease, the land and improvements all belong to the City. He opened the public hearing, and seeing no one wishing to speak on the item, the public hearing was closed.

MSUC (Downey/Ovrom) upon consent adopted A RESOLUTION OF THE COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF CORONADO, CALIFORNIA APPROVING THE FIRST AMENDMENT TO THE DISPOSITION AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE COMMUNITY DEVELOMENT 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 the Agency as RESOLUTION NO. CDA-192.

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

NAYS: None

ABSENT: None

ABSTAIN: None

6. AGENCY BUSINESS:

a. Review and Approval of Fiscal Year 2006-07 Annual Report of the Community Development Agency of the City of Coronado. Section 33080.1 of the Health and Safety Code (Redevelopment Law) requires the preparation of an annual report which contains: (1) an independent financial audit; (2) a fiscal statement; (3) a description of the Agency's activities affecting housing and displacement; and (4) any other information deemed useful to explain its programs.

MSUC (Downey/Ovrom) upon consent to authorize the transmittal of the Annual Report to the City Council and direct the Agency Executive Director to finalize and submit the Fiscal Year 2006-07 Annual Report to the State Controller's Office.

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

NAYS: None

ABSENT: None

ABSTAIN: None

The Agency recessed into Closed Session at 5:35 p.m.

7. CLOSED SESSION:

a. CLOSED SESSION: CONFERENCE WITH REAL PROPERTY NEGOTIATOR

AUTHORITY: Government Code Section 54956.8

ADDRESS OF PROPERTY: 250 Prospect Place, Coronado, California

NAME OF NEGOTIATOR: Mark Ochenduszko, Executive Director and Rachel Hurst, Assistant Executive Director

NAME OF OWNER: Coronado Hospital Foundation

UNDER NEGOTIATION: Price and Terms

The regular meeting resumed at 6:24 pm.

The Agency Deputy Attorney reported that direction was given to the Agency's negotiator.

8. ADJOURNMENT: The Agency adjourned at 6:26 p.m.

Approved: January 15, 2008

___________________________

Tom Smisek, Chair

City of Coronado

Attest:

______________________________

Linda K. Hascup

Agency Secretary