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HomeMy WebLinkAbout1962 10-18 CC ADJ MIN147 National City, California, October 18, 1962 Adjourned meeting of the City Council of October 16, 1962, was called to order by Mayor Gautereaux at 7:30 p.m. o'clock. Council members present: Alien, Colburn, Hart, Morgan, Gautereaux. Council members absent: None. ADMINISTRATIVE OFFICIALS present: Alston, Biggs, Carstens, DeHaven, Foster, Hess, Osburn, Stockman. The meeting was opened with pledge of allegiance to the Flag by City Manager Hess, followed with invocation by Mayor Gautereaux. CITY CLERK ALSTON stated the matter which was laid over for discussioli at this time was relative to the City's application for matching funds from Public Works Acceleration Act Authority. MAYOR GAUTEREAUX requester' we open the meeting with new business prior to the time we get into the specific area we have laid over. Moved by Allen, seconded by Morgan, the request of the Mayor be granted. Carried by unanimous vote. DIRECTOR OF PLANNING STOCKMAN stated she presented two reports at the last Council meeting relative to zoning on Williams Annexation and on Chase Annexation; and requested at that time a public hearing be set for Nov. 6th; and said she would like to recommend the report be received and a public hearing be set for Nov. 13th, as Nov. 6th is election day. Approved by unanimous vote. VICE MAYOR ALLEN stated at the last election, which was a Tuesday, we had a Council meeting, and asked whether we would have a Council meeting on Nov. 6th. ATTORNEY CARSTENS said our Ordinance No. 1042 states in the event the time of a regular meeting of the City Council falls on election day, no meeting will be held that week, and a regular meeting may be dispensed with by vote of the Council. Attorney Carstens stated his interpretation is that November 6th being an election day, no regular meeting would be held that day. Moved by Colburn, seconded by Allen, we have the October 23rd meeting adjourned to Thursday, November 1st at 1:30 p.m. After discussion, Councilman Colburn and Vice Mayor Allen withdrew the motion. Moved by Allen, seconded by Colburn, we lay this item over until the last item of business. Carried by unanimous vote. ATTORNEY CARSTENS stated he had some resolutions in regard to the 1911 Act on Plaza Boulevard, and if it is the pleasure of the Council they can be presented at this meeting. We also have a resolution in regard to National Freight Terminals tidelands lease and a resolution in regard to the suggestion system of the Eagles. Moved by Allen, seconded by Colburn, the resolutions be presented to the Council this evening. Carried by unanimous vote. 10-18-62 148 RESOLUTION NO. 8207 was read, "RESOLUTION DETERMINING THAT PROJECT SHOULD PROCEED (Plaza Boulevard Sta. 17+01.99 to Williams Manor, Unit No. 4). Moved by Allen, seconded by Colburn, the Resolution be adopted. Carried by unanimous vote. RESOLUTION NO. 8208 was read, "RESOLUTION ADOPTING WAGE SCALE (Plaza Boulevard Sta. 17+01.99 to Williams Manor., Unit No. 4." Moved by Morgan, seconded by Hart, the Resolution be adopted. Carried by unani- mous vote. RESOLUTION NO. 8209 was read, "RESOLUTION OF INTENTION NO. 8209 (Plaza Boulevard Sta. 17+01.99 to Williams Manor, Unit No. 4)". Moved by Hart, seconded by Colburn, the Resolution be adopted. Carried by unanimous vote. RESOLUTION NO. 8210 was read, authorizing modification of lease between City of National City and National Freight Terminals. Moved by Morgan, seconded by Allen, the Resolution be adopted. Carried by unanimous vote. RESOLUTION NO. 8211 was read, "RESOLUTION ESTABLISHING SPEAKING TIME FOR THE BETTER CITIZENS SUGGESTION SYSTEM OF THE FRATERNAL ORDER OF EAGLES". Moved by Morgan, seconded by Alien, the Resolution be adopted. MAYOR GAUTEREAUX asked if the Resolution provides for other organize.. tion, other than the Eagles, as had been previously suggested by Councilman Morgan. ATTORNEY CARSTENS stated the resolution is actually for setting aside time for the Eagles and the inclusion of all other organizations can be done by an amendment, and we can add wording which will include it. Councilman Morgan, with the approval of Vice Mayor Allen, included the amendment to the Resolution as suggested by the City Attorney. Carried by unanimous vote. CITY MANAGER HESS reported there are two stop notices to withhold pay- ment relative to a sub -contractor who worked on the construction of the Community Center Building; one in the amount of $16.12, and the other in the amount of $428.24, and recommended they be referred to the City Attorney for the proper disposition. Moved by Allen, sec- onded by Hart, the recommendation of the City Manager be approved. Carried by the following vote to -wit: Ayes: Allen, Colburn, Hart, Gautereaux. Nays: None. Councilman Morgan abstained from voting. CITY MANAGER HESS recommended the necessary steps be taken by the City Attorney and City Clerk to return notes and other legal documents to the First Christian Church relative to the eight lots which were purchased by them, for which we have received final payment, and approved authorization for reconveyance. Moved by Morgan, seconded by Allen, the recommendation of the City Manager be approved. Carried by unanimous vote. 10-18-62 149 CITY MANAGER HESS stated a business firm has requested an audience before the Harbor Committee and would like to meet with the Committee tomorrow at 10:00 a.m,, if possible. COUNCILMAN HART, Chairman of the Harbor Committee called a meeting of the Committee for Friday, Oct. 19th at 10:00 a,m. in the City Manager's office. MAYOR GAUTEREAUX stated at this time, with the approval of the Council, he would like to bring before the Council the matter of a site selec- tion for the City Hall on the floor. VICE MAYOR ALLEN suggested the City Manager explain to the audience how the monies can be obtained for the project, etc. Moved by Allen, seconded by Morgan, the recom- mendation of the Mayor in regard to continuing a hearing that was adjourned last Tuesday, with an explanation prior to discussion by the City Manager where we stand at this time, be approved.. Carried by unanimcsus vote. CITY MANAGER HESS pointed out to the audience the two sites which were selected by the Site Committee; one involving an area between l3th and 16th Streets, located between "D" and "E" Avenues; th.e area between 13th and 15th Streets is already the property of the City. The addi- tional area from 15th.to 16th Street between "D" and "E" was suggested as the prime choiee by the Site Committee, but is not City owned land and would have to be acquired within a period of 120 days following the :applications for a grant for the Federal; Government. .:Site No. 2 is entirely City owned property with the exceptionof one lot on the extreme eastern end. Mr. Hess explained how the grant for matching funds can be obtained; and .for what projects the funds can be used. The purpose and intent of the Act is the fact the Federal Government is interested in employing more people to relieve the depressed condi- tion and to bring more money into the area to generate a economical system. MAYOR GAUTEREAt7X stated he would call on the architect, Mr. Bird, to make a presentation on the three sites that were considered by. the Site Committee. JAMES BIRD, Architect, was present, and stated he thought perhaps the Chairmanof the Site Committee could explain the process they went through to- arrive at the point which the Council considered at their last meeting. RALPH FINNERTY, Chairman of the Site Committee, was present, and presented :the .members of the Committee who were present in the audience; Mrs. Jean Johnson, E.J. Christman. Mr. Finnerty stated Clifford Reid, Robert Henderson ,and Louis Camacho, also members of the Site Committee were not present., Mr. Finnerty, stated the Committee tried to follow an, orderly plan in making a site Selection and decided to have an analysis of the space need for the installation of a Civic Center. Mr. Bird, the architect, with the help of .Mrs. Stockman, made a survey of the present needs, and what they 10-18-62 150 felt the future needs would be. Actually it "boils" down to about two blocks. They considered population distribution; environment, present and future; community service; accessibility; landscape and area rela- tionship; valuation of available site; development; affect on tax base; and relationoaip to the master plan of future development. We started owith seven sites and finally reduced that to three sites; and at the last meeting we "boiled" it down to the two sites shown on the chart. The Committee was unable to reach the point where they could see what could actually be done with the two sites; we were hop- ing we would have time so Mr. Bird could have some sketches made so they could visualize what both sites could develop into. Mr. Finnerty said the entire Committee agreed on Site No. 1 as the first choice and Site No. 2 as second choice. VICE MAYOR ALLEN asked if "D" Avenue site within the Olivewood Housing was ever considered. MR. FINNERTY stated it was. MR. BIRD, Architect, stated one of the initial steps in analy- zing the sites in National City was to look at the entire City, and one of the important things the Committee decided on was population wise and due to the accessibility the most desirable site would be found somewhere in the confines of National Avenue to Palm Avenue and 8th Street to 16th Street. Mr. Bird said he felt that Site No. 2 can be an appropriate site. LARRY RUEHL, 308 E. 8th Street, was present, and stated he felt it would be to the City's advantage to partake of their share of the program, and if Site #2 is the most feasible, and from what has been said, seems practical, he would feel that would be the one to proceed on. VICE MAYOR ALLEN asked if there is time left that would make it possible for us to get this money if this particular site was not approved. CITY MANAGER HESS stated there is only a cer- tain portion of the funds which have been allocated for California, and as pointed out it would be a "first come, first served situation" until the funds run out. If the funds are expended, that is it; there are only so many funds available. MAYOR GAUTEREAUX stated the basic criteria for these monies is employment. COUNCILMAN HART said he would like the Northeast corner of "D" Avenue and 24th Street considered as a possible site for the Civic Center. RUBEN RUBIO, 1729 Cleveland Avenue, was present, and stated he thought the safety of the children should be considered, if it is proposed to build a Civic Center on Site #2; it is close to several schools, the Boys Club and the Girls Club. COMMUNICATION FROM W. J. DeBRUNNER, BUSINESS MGR., SAN.DIEGO COUNTY BUILDING & CONSTRUCTION TRADES COUNCIL was read, stating it has come to his attention National City is in position to qualify for Federal assistance in the amount of a half million dollars, and urged the Council to act on the matter, if it does not injure the city's facility, and select the site that will "get the dirt flying within 10-18-62 151 six months." VICE MAYOR ALLEN stated our Planning Director has been working on a master plan and has been in two or three conferences in regard to this particular situation and would like to have her comments, and particularly those made by some of the people who have discussed this site at various times. Moved by Colburn, seconded by Allen, we hear Mrs. Stockman's report. COUNCILMAN HART asked if Mrs. Stockman wished to make a report. Mrs. Stockman said if he wished to. Carried by unanimous vote. DIRECTOR OF PLANNING STOCKMAN stated she attended a down town district conference today held in Santa Monica, along with our architect, and at the conference we heard 16 speakers ranging from citizens to business men; members of Chambers of Commerce; City offi- cials, Presidents of down town districts, and Planners. Mrs. Stockman stated every one of them indicated in their speeches that in order to save our central district area it is urgent we consider good sound planning that will protect governmental agencies, bankers, insurance offices and other offices to maintain and keep a civic pride in our down town central area. We have lost our post office in that area, we would be moving this governmental agency away; their main thinking was if we do de -centralize we could be causing a drastic ruination of our down town area. MAYOR GAUTEREAUX stated he would suggest we take the three sites the Committee has recommended to us and take them one at a time and vote on them. Moved by Morgan, seconded by Hart., we do not vote on Site No. 1 from the Site Committee. Carried by unanimous vote. Moved by Morgan, seconded by Hart, we put the City Hall on the north- east corner of 24th and "D". Motion lost, by the following vote to -wit: Ayes: Hart, Morgan. Nays: Allen, Colburn, Gautereaux. Moved by Alien, seconded by Colburn, we accept the second site recommended by the Site Committee. Carried, by the following vote to -wit: Ayes: Allen, Colburn, Gautereaux. Nays: Hart, Morgan. Moved by Hart, sec- onded by Morgan, we ask the Committee to find a new location of land we own in the Housing, and the first location they choose he would go along with. Motion lost, by the following vote to -wit: Ayes: Hart, Morgan. Nays: Allen, Colburn, Gautereaux. Moved by Allen, seconded by Colburn, the Finance Committee hold a meeting to recommend to the Council, and invite all members to be present for discussion, and recommend to the Council the means of trying to obtain the funds, whether it be by a bond issue or otherwise. Carried by unanimous vote. COUNCILMAN COLBURN, Chairman of the Finance Committee, called a meet- ing for Friday, October 19th, immediately following the 10:00 a.m. meeting of the Harbor Committee. MAYOR GAUTEREAUX expressed his own personal thanks to the Site Commit- tee and those people who so diligently worked on the selection of a 10-18-62 152 site; and it was his hope the final selection of a site recommended by the Committee would receive unanimous support of the Council; however, it has gassed by the necessary majority in selecting a site; and if the Council would permit, he would ask that the Citizens Committee continue to assist in our Civic Center project however it does resolve, to the conclusion; so any time this Committee is called upon to fur- ther assist us the Committee does remain in effect. Moved by Morgan, seconded by Colburn, the recommendation of the Mayor be approved. Carried by unanimous vote. COUNCILMAN HART thanked the Site Committee for the job they did. CITY MANAGER HESS stated it was requested of him by Mr. Morgan to pre- pare a report relative to the manner in which additional matching funds might logically be acquired. Mr. Hess stated they had some charts drawn which show two proposals. It was Mr. Morgan's intention to put all of the money immediately available to us from land sales into the Capital Outlay Fund so as to give us the greatest potential for applying for matching funds. We conducted a great deal of study on the matter and this involves two plans; Plan A and Plan B. CITY MANAGER HESS read the following report: "For a number of years the City of National City has operated on a balanced budget, this meaning that they have incurred no appreciable indebtedness except for several bond issues, the last of which will be liquidated this fiscal year. There are pros and cons to the adminis- trative operation of a city on a balanced budget. A balanced budget does relieve the city to a certain extent in that there axe no large, outstanding obligations to be coped with; however, there is the other side of the picture wherein a balanced budget often means that progress is limited since municipalities the size of National City are limited in making large capital improvements. "At the beginning of this fiscal year (July 1, 1962), the city had in its General Fund $78,000.00 for the operation of city affairs. "Through graphic illustration and narrative, the City Administrative Assistant, Mr. Osburn, and I will endeavor to illustrate a proposed plan of operation whereby the city next year may go into the new year (July 1, 1963) with a balance of $150,000.00 - as opposed to the $78,000.00 we had on hand as I mentioned before. It has been two years since the city had a balance of $150,000.00 on hand to begin the operations of the city. "Operating with less than $150,000.00 on hand at the beginning of the year does not appear to be a prudent practice since it requires that the city administration must, during the early months of the fiscal 10-18-62 153 year, borrow funds from other accounts to carry out the work which will be paid for through the General Fund. These monies must be repaid to the funds from which they were borrowed during the fiscal year in which they were borrowed; however, there are shortcomings to this prac- tice. When money is borrowed from a fund and placed into the General Fund for operation it limits the productivity of the fund from which it was borrowed and has a tendency to create a relatively dormant period as applied to the fund from which it was borrowed. As an exam- ple, if funds are borrowed from the Special Street Fund to supplement the General Fund it means that work which would be carried on utiliz- ing Street Fund resources must be curtailed until such time that it is practicable to repay the borrowed monies from the General Fund. This, of course, cannot be repaid during the early portion of the fiscal year since the city does not have at its disposal revenues which will be coming into this General Fund, i.e., sales tax, property tax, etc. "To reiterate then if the General Fund has a sufficient amount avail- able at the beginning of the year to sustain itself, other funds which have monies in their various accounts can be put to work, leaving no void period during the year as far as improvements, repairs and main- tenance are concerned. "First, let us consider the proposal of placing all monies now avail- able to us from the sale of city owned properties ($180,000.00) into the Capital Outlay fund so that they would be available for matching funds under the current Public Works Acceleration Account. In this event only $121,000.00 would be available for matching funds since the city is encumbered in the amount of $78,000.00 in the Capital Outlay Fund for budgeted items. "Secondly, concerning the Drainage Fund (having placed all land sales monies in the Capital Outlay Fund) there would be no immediate funds available for matching funds. However, at the end of the year there would actually be a residue of $120,000.00 in the Drainage Fund, but during the period from this date until May of next year there would be no drainage fund available for any projects since the drainage fund cannot be repaid from the General Fund until next May. "Thirdly, relative to the Special gtreet Fund (having placed all land sale monies in the Capital Outlay Fund) the same situation would apply as did to the aforementioned Drainage Fund expenditures with the excep- tion that at the end of the year there would be $157,000.00 in this Special Street Fund however, there is still this dormant period between now and May when there is slightly over $20,000.00 available to do projects during this period of time. 10-18-62 154 "Fourth, considering that it were undertaken to place all land sale monies in the Capital Outlay Fund, the fund which suffers most under these conditions is the General Fund which at the end of the year would only have a balance of $12,000.00, creating a situation whereby that immediately after the beginning of the fiscal year (July 1, 1963), it would be immediately necessary to borrow funds from Drainage and Special Streets, thereby causing the situation which reduces the pro- ductivity of activities which are carried on utilizing the Drainage and Special Streets Funds. This situation is not considered to be a wise administrative approach as a $12,000.00 balance on hand at the begin- ning of the year creates tremendous administrative problems and as a general statement, precludes the type of city operation which could be considered to be the most effective. "Now let us consider another proposal. First, that the total land sale monies are not placed in the Capital Outlay Fund and that the Capital Outlay Fund continue on as originally proposed at the outset of this budget year. This fund would end up with an amount of $14,000.00 on hand, which, if necessary, could be supplemented through- out the year by receiving transfers to this fund from the General Fund which theoretically should be in better financial condition next year under this proposal. It is important to note that this is the exact condition that this fund would end up in as of January 30, 1963 should there have been no program for matching funds and, of course, this indicates no change whatsoever as applied to the proposal which fol- lows herein. "As a second point in this proposal, let us consider the Drainage Fund. The Drainage Fund will have a balance of $65,000.00 on hand at the end of this fiscal year. Should it be necessary, this fund too could pos- sibly be added to by transfers from the General Fund which we antici- pate will be in better condition under this proposal. The important factor here relating to the Drainage Fund is that as of the middle of November we will have $65,000.00 on hand for matching funds as related to Drainage projects. "Continuing in this proposal, let us consider the Special Street Fund. At the end of the year the Special Street Fund will have a balance of $55,000.00. Once again the important factor here is that by mid November we would have available to us $102,000.00 relative to a request for matching funds from the Federal Government. "Finally and probably most important of all is the fact that if all land sales monies were placed into the General Fund at this time the following could be accomplished: 10-18-62 155 "1. All loans could be repaid to funds immediately as borrowed from the various funds, as required by law. "2. That $20,000.00 from the General Fund could be set aside for the Casa de Salud, and here again application be made for matching funds to complete this project under the Public Works Acceleration Act. In this instance the Casa would be built under contract and would not require volunteer labor from the citizens of National City. "3. Of great consequence is the fact that the General Fund under this proposal should, at the end of this year, have a balance of $150,000.00 which would greatly enhance the City's position as to the overall ouni- cipal operation. "In summation, the chart indicates Plans "A" and "B", "A" of course being the proposal where all land sale monies are deposited into the General Fund and procedures carried out as outlined herein. "B" illus- trates the condition of the city and its funds should the entire land sales monies be placed into the Capital Outlay Fund, and it is apparent, that under "A" there will be available within the required period of time as set forth by government operations, $187,000.00 which can be used for matching funds. Under "B" there would only be $121,000.00 available to submit as a matter relating to matching funds. "Under Plan A on 6-30-63 in the afore -discussed funds, we would have a total of $289,000.00 on hand. Plan B shows a total of $349,000.00 in the same funds; however, when projects using matching funds are applied to Plan A, there is a total of $374,000.00 for construction while Plan B shows only $242,000.00 for construction. "In Plan A applying funds on hand as of 6-30-63 and adding construction improvements, there is a $663,000.00 combination of fund balances as well as the improvement factor. "In Plan B, applying the same formula as above, there appears only a fund balance and improvement factor of $591,000.00. "Therefore, Plan A is recommended. This means placing of land sale monies in the general fund for distribution to the other funds, thereby permitting a greater potential for matching funds and allowing the General Fund to have a greater sustaining factor at the beginning of the next fiscal year." After considerable discussion, it was moved by Colburn, seconded by Allen, we adopt Plan "A". CITY CLERK ALSTON stated it is her inter- pretation of the Government Code that money spent out of the Capital Outlay Fund and the profits therefrom shall be returned to the respec- tive funds. ATTORNEY CARSTENS asked Mrs. Alston what particular section 10-18-62 156 of the Government Code she was referring to. MRS. ALSTON stated it was under deposit of funds, investment of surplus; Section 53605. ATTORNEY CARSTENS read Section 53605 of the Government Code and stated his interpretation of the section is that this applies to bonds, notes and registered warrants and would not include real property. The matter has been researched and we find no Government Code section and other legislative action of the State of California that would prevent or militate against the action recommended in Plan "A«. There is a Government Code section concerning General Funds which states that miscellaneous revenues of the City will be put into the General Fund; there are also cases by the California Supreme Court that indicate that upon sale of property or any other sources of revenue these funds will be put into the General Fund. The possibility of the Council erring, in his opinion, would be on the fact these monies being put into the Capital Outlay Fund or the Drainage Fund might in itself be improper. The cases, and the Government Code section, in the Attor- ney's opinion, indicate the proper method of handling these monies on sales of land is to put them in the General Fund and that possibly the Council would be in error in doing otherwise. In view of the research we have conducted on this, the Attorney stated he saw nothing illegal or improper in following Plan 'IA". It would be the Attorneys recom- mendation the funds derived from the sale of property be put in the General Fund. Carried, by the following vote to -wit: Ayes: Allen, Colburn, Gautereaux. Nays: Hart, Morgan. Moved by Colburn, seconded by Morgan, our next regular meeting of Tuesday, October 23rd, be adjourned until October 30, 1962, at 1:30 o'clock. Carried, by the following vote to -wit: Ayes: Colburn, Morgan, Gautereaux. Nays: Allen, Hart. CITY MANAGER HESS stated apparently Plan "A" has been adopted, and there will be some $187,000 available he wished to know if it was the desire of the Council to make application for some matching funds. Moved by Allen, seconded by Colburn, we make application for any and all funds we will be eligible for, under this situation where we have titles, etc. necessary to do so. Carried by unanimous vote, DIRECTOR OF PLANNING STOCKMAN asked the City Manager if he had sufficient infor- mation to specifically tie the projects down relative to application for matching funds. CITY MANAGER HESS stated it is through our Special Street Fund to apply for funds for Highland Avenue and any additional streets that would qualify as the type of streets to be repaved; Casa to be considered; and drainage, special drainage structures, and asked if this should be left to the discretion of the City Manager and City Engineer, or are there any specific drainage structures the Council 10-18-62 p.m. 157 would like to incorporate. COUNCILMAN MORGAN stated he would like to have the City Manager make application for all matching funds he could for streets; every dollar we have; and the drainage on Highland Avenue. MAYOR GAUrEREAUX stated it would be necessary to adopt a resolution calling for an election relative to bonds for the building of a new city hall. ATTORNEY CARSTENS stated the application to the Federal Government for funds has to be authorized by resolution of the Council; and there are two resolutionswhich the Government requires; one authorizing the filing of the application; and one indicating the desire of the Council to call an election for the vote of the people on the bonds to provide the City's one-half of the matching funds. Moved by Allen, seconded by Colburn, the resolutions be read. Carried, by the following vote to -wit: Ayes: Allen, Colburn, Gautereaux. Nays: Hart, Morgan. COUNCILMAN COLBURN stated this would be the choice of the people; if they voted the bonds down we could not build the City Hall; and we are, giving the citizens of National City a chance to voice their -opinion. ATTORNEY CARSTENS stated before a bond election can be held, the first resolution which will be read requires it be passed by a four to one vote; the Government Code states it requires a two-thirds vote, and because of the fact we have a five man Council it requires four affirmative votes for the resolution; anything less than the four affirmative votes means there could not be a bond elec- tion; which would in effect mean we could not apply for Federal funds. on this particular project. COUNCILMAN HART stated under those condi- tions he would like time to think it over, and asked if the meeting could be adjourned. Councilman Colburn withdrew his second to the motion, and Vice Mayor Allen withdrew the motion. Moved by Colburn, seconded by Morgan, the meeting be adjourned until Friday, October 19, 1962, at 11:30 a.m. Carried by unanimous vote. The meeting adjourned at 10:20 p.m. ATTEST: %1. CITY CLERK R, CITY OF NA 'ONAL CITX, C IF7RNIA 10-18-62