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Home My WebLink About2010-06-29; City Council; MinutesMINUTES JOINT MEETING OF: THE CITY OF CARLSBAD CITY COUNCIL, MUNICIPAL WATER DISTRICT AND HOUSING AND REDEVELOPMENT COMMISSION (Joint Special Meeting) DATE OF MEETING: June 29, 2010 TIME OF MEETING: 6:00 p.m. PLACE OF MEETING: City Council Chambers CALL TO ORDER: Mayor/President/Chair Lewis called the Joint Special Meeting to order at 6:41 p.m. ROLL CALL: Present: Council/Board/Commission Members Lewis, Kulchin, Hall, Packard and Blackburn. Absent: None. PUBLIC HEARING: 1. AB #20.295 - 2010/2011 OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGETS. Finance Manager Judi Vincent and Senior Civil Engineer Marshall Plantz presented the staff report and PowerPoint presentation (on file in the Office of the City Clerk). In response to an inquiry from Council/Board/Commission Member Blackburn, Housing Program Manager Bobbie Nunn explained the Section 8 Housing program is federally funded, no General Fund monies are used for this program. In response to an inquiry from Council/Board/Commission Member Packard, Ms. Vincent said that the City's infrastructure replacement fund would be a component of the Master Plan Study that should be completed within the year. Council/Board/Commission Member Hall asked about the proposed selling of two parcels near the top of The Crossings Golf Course to offset monies advanced by the General Fund. Acting Finance Director Kevin Branca explained that funds from the sale of the two parcels created when the golf course was developed would be transferred from Golf Course Fund to the General Fund, to pay down a General Fund advance of $4.3 million. In response to an inquiry from Council/Board/Commission Member Hall, Mr. Branca said that the city was not permitted to show a profit when transferring monies or parcels between funds. Council/Board/Commission Member Hall asked about the value of the two parcels. June 29, 2010 JOINT SPECIAL MEETING OF THE CITY OF CARLSBAD CITY COUNCIL, Page 2 MUNICIPAL WATER DISTRICT AND HOUSING AND REDEVELOPMENT COMMISSION City Manager Lisa Hildrabrand responded that both lots were appraised in 2005 for approximately $12 million. In response to an inquiry from Council/Board/Commission Member Hall, Utilities Director Glenn Pruim said the city's total recycled water consumption is 20%. He added that Carlsbad has invested over $30 million in the Phase II Recycled Water Expansion project. In response to an inquiry from Mayor Pro Tern/Vice President/Vice Chair Kulchin, Mr. Pruim said the City is proposing to install a recycled water system along Palomar Airport Road for the business community. Mayor Pro Tern/Vice President/Vice Chair Kulchin asked about the 18% increase in the proposed utility rate increases to those residents and businesses in the Carlsbad Municipal Water District. Ms. Vincent explained that this rate increase is a direct reflection of an 18% pass-through increase to the City from the County Water Authority for the purchase of water. In response to a request from Mayor Pro Tern/Vice President/Vice Chair Kulchin, Ms. Vincent explained the process involved that notifies Carlsbad residents and businesses about the proposed increase in utility fees. Mayor Pro Tern/Vice President/Vice Chair Kulchin asked to see the rates of Olivenhain and Vallecitos Water Districts when the utility rate increase item is returned to the Council/Board. In response to an inquiry from Council/Board/Commission Member Hall, Senior Accountant Helga Stover explained that 16% of the utility rate increase is a pass-through from the County Water Authority and 2% of the increase is to fund replacement transfer increases in the Carlsbad Municipal Water Fund. Mayor/President/Chair Lewis also asked about the use of General Fund monies to cover PERS investment losses. Mr. Branca said that a portion of the retirement program is funded from the General Fund. He added, however, that other funds do have employee costs in them and those funds are also affected. He explained that there is a two-year delay between the loss occurrence and the effect of the City's PERS rate increase to cover the loss. He added that PERS costs are built into the budget future consideration for the next 10 years Mayor/President/Chair Lewis asked for a breakdown of per-year retirement costs that the City will pay to PERS. Mayor/President/Chair Lewis opened the duly noticed Public Hearing at 7:16 p.m. Mario Monroy of Carlsbad came forward to request that Council allocate funds in the 2010-11 budget to expedite the implementation of the barrio plan. Mr. Monroy stated he was concerned that this area has June 29, 2010 JOINT SPECIAL MEETING OF THE CITY OF CARLSBAD CITY COUNCIL, Page 3 MUNICIPAL WATER DISTRICT AND HOUSING AND REDEVELOPMENT COMMISSION not had any economic incentive or assistance. He asked Council to move ahead now and not wait for the update on the General Plan. Socorro Anderson of Carlsbad came forward to address Council. Ms. Anderson said residents of the Barrio are hoping for a new plan and assistance with their area. Community and Economic Development Director Gary Barbaric explained that in prior attempts to bring potential land use changes in the Barrio before the Council, Council directed staff to obtain outside funding to expedite the work, and, if funds were not available, to complete the work as part of the Envision Carlsbad Program. Mr. Barbaric said that the Barrio Plan was programmed as part of Phase II of the Envision Carlsbad Program. He stated that the City applied for SANDAG funding in 2009 for the Barrio Plan with a 30 month completion schedule. Mr. Barbaric added that due to a potential change in dwelling units per acre, it was advisable to prepare an Environmental Impact Report (EIR) and that the SANDAG funds would not cover the preparation of the EIR. Mr. Barbaric further added that the Envision Carlsbad Program does have funding for a Program EIR and will include the Barrio. He concluded, saying that the completion schedule for Phase II of the Envision Carlsbad Program was estimated at 2.5 years. In response to a request from Council/Board/Commission Member Hall, the Council/Board/Commission concurred to have the Barrio Plan placed on the July 20, 2010 Council workshop agenda for further discussion. Mayor/President/Chair Lewis asked Mr. Monroy to ensure that property owners in the Barrio were notified about the workshop. Seeing no one else wishing to speak, Mayor/President/Chair Lewis closed the Public Hearing at 7:39 p.m. City Attorney/General Counsel Ball amended the second paragraph, of section 5.09.030(b) of Ordinance CS-094 to read as follows: "The license tax adjustment for the July 1, 2010 - June 30, 2011 fiscal year shall be held in abeyance for a period of one year. Thereafter the license tax shall return to the amount it would have been had there been no suspension unless prior to that time the City Council adopts an ordinance specifying a different fee or formula." City Attorney/General Counsel Ball titled the Ordinance. The Council/Board/Commission expressed their appreciation for staff's presentation. ACTION: On a motion by Mayor Pro Tern/Vice President/Vice Chair Kulchin, the Council/Board/Commission adopted the following: The Council adopted RESOLUTION NO. 2010-172. approving the final Operating Budgets for FY 2010-11 and appropriating funds for the FY 2010-11 Capital Improvement Program; and, The Council adopted RESOLUTION NO. 2010-173. adopting the Gann Spending Limit for the City of Carlsbad for 2010-11; and, June 29, 2010 JOINT SPECIAL MEETING OF THE CITY OF CARLSBAD CITY COUNCIL, Page 4 MUNICIPAL WATER DISTRICT AND HOUSING AND REDEVELOPMENT COMMISSION AYES: NOES: ABSENT: ADJOURNMENT: The Council adopted RESOLUTION NO. 2010-174. approving changes to the Master Fee Schedule; and, The Council adopted RESOLUTION NO. 2010-175.determining that the FY 2010- 11 Capital Improvement Program Budget is consistent with the General Plan based upon the findings; and The Council adopted RESOLUTION NO. 2010-176.approvinq the City of Carlsbad's share of the FY 2010-11 Operating Budget of the Encina Wastewater Authority; and, The Council adopted RESOLUTION NO. 2010-177. approving adjustments to the FY 2009-10 Operating Budget; and, Council introduced ORDINANCE NO. CS-094. amending Carlsbad Municipal Code Section 13.10.030, 13.10.080, 13.10.090, 15.08.040(b) with an additional amendment to the second paragraph of Section 5.09.030b(b) to read as follows: "The license tax adjustment for the July 1, 2010 - June 30, 2011 fiscal year shall be held in abeyance for a period of one year. Thereafter the license tax shall return to the amount it would have been had there been no suspension unless prior to that time the City Council adopts an ordinance specifying a different fee or formula." The Board adopted RESOLUTION NO. 1399. approving the Water District's final Operating Budget and Capital Improvement Program for FY 2010-11; and, The Commission adopted RESOLUTION NO. 487. approving the Housing and Redevelopment Operating Budget for 2010-11; and, The Commission adopted RESOLUTION NO. 488. approving adjustments to the Housing and Redevelopment FY 2009-10 Operating Budget. Lewis, Kulchin, Hall, Packard and Blackburn. None. None. By proper motion, the Joint Special Meeting of June 29, 2010 was adjourned at 7:49 p.m. lINE M. WOOD, CMC City Clerk/ Secretary