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HomeMy WebLinkAbout2012 12-18 CC HA MINBook 94 / Page 246 12-18-2012 MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL AND COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY December 18, 2012 The Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City was called to order at 6:43 p.m. by Mayor / Chairman Ron Morrison. ROLL CALL Council / Board members present: Cano, Morrison, Natividad, Rios, Sotelo-Solis. Administrative Officials present: Cissel, Dalla, Deese, Duong, Manganiello, Parra, Raulston, Roberts, Rodriguez, Silva, Smith, Stevenson, Vergara, Williams. Others present: City Treasurer Mitch Beauchamp and Student Representative Kane Gillego. PLEDGE OF ALLEGIANCE TO THE FLAG BY MAYOR RON MORRISON PUBLIC ORAL COMMUNICATIONS Sunshine Horton, El Cajon, told the story of how she was able to provide a bicycle for a needy family this holiday season. Eddie Perez, National City, reported that the Community Services Department was able to take 13 young people to the play 'La Pastoriela' thanks to a donation by Mr. Bill Virchis. Mr. Perez inquired if it would possible to have the Casa Salud open for youth during the holiday furlough. OFF AGENDA ITEM SUBJECT: Consideration of the request from the Successor Agency to obtain a loan from the City of National City to meet obligations of the Successor Agency and payment demands of the State of California's Department of Finance. ACTION: Motion by Natividad, seconded by Sotelo-Solis, to add the item to the Agenda as Item No. 22A. Carried by unanimous vote. CITY COUNCIL PRESENTATIONS Book 94 / Page 247 12-18-2012 PERSONNEL RECOGNITION / APPRECIATION ADMIN (604-2-1) 1. Employee of the Month of December, 2012 — Eduardo Garcia — Sous Chef, Nutrition Center COUNCIL MEETING PRESENTATIONS 2012 (102-10-7) 2. Presentation: National City Energy Roadmap and the South Bay Energy Action Collaborative (SBEAC) Scope of Work — San Diego Association of Governments (SANDAG) and the City of Chula Vista (Copy on file in the Office of the City Clerk) COUNCIL MEETING PRESENTATIONS 2012 (102-10-7) 3. Tourism Marketing District (TMD) Update — Chamber of Commerce (Copy on file in the Office of the City Clerk) COUNCIL MEETING PRESENTATIONS 2012 (102-10-7) 4. Sweetwater Authority Update — Mayor Ron Morrison CONSENT CALENDAR ADOPTION OF CONSENT CALENDAR. Item No. 5 (Minutes), Item No. 6 (NCMC), Item Nos. 7 through 18 (Resolution Nos. 2012-232 through 2012-243), Item Nos. 19 and 20 (Warrant Registers), Item No. 21 (TUP). Motion by Rios, seconded by Sotelo-Solis, to pull Item Nos. 9, 10, 11 and 13, and to approve the remainder of the Consent Calendar. Carried by unanimous vote. APPROVAL OF MINUTES 5. SUBJECT: Approval of the Minutes of the Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City of November 20, 2012. (City Clerk) ACTION: Approved. See above. MUNICIPAL CODE 2012 (506-2-27) 6. APPROVAL OF A MOTION TO WAIVE READING OF THE TEXT OF THE ORDINANCES CONSIDERED AT THIS MEETING AND PROVIDES THAT SUCH ORDINANCES SHALL BE INTRODUCED AND/OR ADOPTED AFTER A READING OF THE TITLE ONLY. (City Clerk) ACTION: Approved. See above. Book 94 / Page 248 12-18-2012 CONSENT CALENDAR (cont.) POLITICAL SUPPORT ADMIN (102-4-1) 7. Resolution No. 2012-232. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY SUPPORTING PARTICIPATION IN THE SOUTH BAY ENERGY ACTION COLLABORATIVE, FUNDED THROUGH SAN DIEGO GAS & ELECTRIC AND THE CALIFORNIA PUBLIC UTILITIES COMMISSION TO HELP PROMOTE ENERGY EFFICIENCY OPPORTUNITIES AT MUNICIPAL FACILITIES AND IN THE COMMUNITY. (Community Development) ACTION: Adopted. See above. PARKING & TRAFFIC CONTROL ADMIN 2012 (801-2-33) 8. Resolution No. 2012-233. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF RED CURB "NO PARKING" ON SWEETWATER ROAD AT CALMOOR STREET/FAIRLOMAS ROAD TO ENHANCE SAFETY AND ACCESS AT BUS STOPS. (TSC 2012-26) (Engineering) ACTION: Adopted. See above. PARKING & TRAFFIC CONTROL ADMIN 2012 (801-2-33) 9. Resolution No. 2012-234. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF RED CURB "NO PARKING" ON E. 8TH STREET AT ARCADIA PLACE TO IMPROVE VISIBILITY FOR DRIVERS. (TSC 2012-27) (Engineering) ACTION: Motion by Natividad, seconded by Sotelo-Solis, to continue to February 5, 2013 and have a Council committee of Members Cano and Rios review with staff and make a recommendation. Carried by unanimous vote. PARKING & TRAFFIC CONTROL ADMIN 2012 (801-2-33) 10. Resolution No. 2012-235. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF RED CURB "NO PARKING" ON E. 8TH STREET AT PARADISE DRIVE TO IMPROVE VISIBILITY FOR DRIVERS. (TSC 2012-28) (Engineering) ACTION: Motion by Natividad, seconded by Sotelo-Solis, to continue to February 5, 2013 and have a Council committee of Members Cano and Rios review with staff and make a recommendation. Carried by unanimous vote. Book 94 / Page 249 12-18-2012 CONSENT CALENDAR (cont.) PARKING & TRAFFIC CONTROL ADMIN 2012 (801-2-33) 11. Resolution No. 2012-236. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE RESTRIPING OF HOOVER AVENUE BETWEEN MILE OF CARS WAY AND W. 22ND STREET FROM FOUR TRAVEL LANES TO TWO TRAVEL LANES TO INCREASE PARKING. (TSC 2012-29) (Engineering) ACTION: Motion by Natividad, seconded by Sotelo-Solis, to adopt the Resolution. Carried by unanimous vote. PARKING & TRAFFIC CONTROL ADMIN 2012 (801-2-33) 12. Resolution No. 2012-237. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE INSTALLATION OF CENTERLINE STRIPING ON E. 22ND STREET BETWEEN NATIONAL CITY BOULEVARD AND "D" AVENUE TO ENHANCE SAFETY. (TSC 2012-33) (Engineering) ACTION: Adopted. See above. PARKING & TRAFFIC CONTROL ADMIN 2012 (801-2-33) 13. Resolution No. 2012-238. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING REPLACEMENT OF A STANDARD STOP SIGN LOCATED ON SOUTHBOUND STOCKMAN STREET AT CAGLE STREET WITH AN "OVERSIZED" STOP SIGN AND INSTALLATION OF A RETRO-REFLECTIVE SLEEVE ON THE STOP SIGN POLE TO ENHANCE SAFETY. (TSC 2012-31) (Engineering) TESTIMONY: Yvonne Harward, National City, spoke in favor. ACTION: Motion by Sotelo-Solis, seconded by Rios, to adopt the Resolution. Carried by unanimous vote. PARKING & TRAFFIC CONTROL ADMIN 2012 (801-2-33) 14. Resolution No. 2012-239. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING INSTALLATION OF ALL - WAY STOP CONTROL AT THE INTERSECTION OF E. 26TH STREET AND "K" AVENUE AND E. 26TH STREET AND "J" AVENUE. (TSC 2012- 32) (Engineering) ACTION: Adopted. See above. Book 94 / Page 250 12-18-2012 CONSENT CALENDAR (cont.) PARKING & TRAFFIC CONTROL ADMIN 2012 (801-2-33) 15. Resolution No. 2012-240. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING CHANGES TO CURBSIDE PARKING ON GRANGER AVENUE AND E. 20TH STREET ADJACENT TO GRANGER JR. HIGH SCHOOL TO IMPROVE ACCESS FOR EMERGENCY VEHICLES AND PROVIDE PASSENGER LOADING ZONES FOR STUDENT DROP-OFF/PICK-UP. (TSC 2012-30) (Engineering) ACTION: Adopted. See above. CELLULAR RADIO / TEL FACILITIES ADMIN - WIRELESS COMM. (908-1-3) CONTRACT (C2004-28) 16. Resolution No. 2012-241. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO SIGN A LETTER FROM T-MOBILE USA INC. ACKNOWLEDGING AND CONSENTING TO THE ASSIGNMENT OF THE LEASE TO T-MOBILE TOWER WEST, LLC AND TO THE MASTER LEASE WITH CROWN CASTLE INTERNATIONAL CORP., AS IT RELATES TO THE LEASE AGREEMENT WITH THE CITY OF NATIONAL CITY FOR T-MOBILE'S COMMUNICATIONS FACILITIES IN SWEETWATER HEIGHTS CENTENNIAL PARK, LOCATED AT 3842 CAGLE STREET. (Engineering) ACTION: Adopted. See above. CELLULAR RADIO / TEL FACILITIES ADMIN - WIRELESS COMM. (908-1-3) CONTRACT (C2003-33) 17. Resolution No. 2012-242. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR'S SIGNATURE ON LETTER FROM T-MOBILE USA, INC. ACKNOWLEDGING AND CONSENTING TO THE ASSIGNMENT OF THE LEASE TO T-MOBILE TOWER WEST, LLC AND TO THE MASTER LEASE WITH CROWN CASTLE INTERNATIONAL CORP., AS IT RELATES TO THE LEASE FOR THE COMMUNICATION FACILITIES IN EL TOYON PARK LOCATED AT 2005 E. 4TH STREET. (Engineering) ACTION: Adopted. See above. Book 941 Page 251 12-18-2012 CONSENT CALENDAR (cont.) DEED (D2012-4) 18. Resolution No. 2012-243. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ACCEPTING AN EASEMENT FOR DRAINAGE PURPOSES FROM PIO R. HERNANDEZ AND JOANNA E. R. HERNANDEZ AND AUTHORIZING THE RECORDATION OF A GRANT DEED FOR A DRAINAGE EASEMENT ACROSS LOT 6 OF BLOCK TWO OF MAP 1148 HOME CREST VILLAS AND THE ADJACENT PORTION OF THE VACATED ALLEY. (Development Services/Engineering) ACTION: Adopted. See above. CONTRACT (C2012-60) 19. Resolution No. 2012-244. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE CHIEF OF POLICE TO ENTER INTO AN AGREEMENT FOR PARTICIPATION IN THE SOUTHWEST BORDER ANTI -MONEY LAUNDERING ALLIANCE (SWBAMLA) TASK FORCE. THE SWBAMLA TASK FORCE WILL CONDUCT CRIMINAL INVESTIGATIONS AS IT RELATES TO MONEY LAUNDERING BY MEXICAN TRANSNATIONAL CRIMINAL ORGANIZATIONS. THE THREE (3) YEAR GRANT WILL PAY FOR ONE (1) NATIONAL CITY POLICE OFFICER'S SALARY/BENEFITS /OVERTIME IN THE AMOUNT OF $449,140. (Police) ACTION: Adopted. See above. WARRANT REGISTER JULY 2012 — JUNE 2013 (202-1-27) 20. Warrant Register #21 for the period of 11/14/12 through 11/20/12 in the amount of $394,999.08. (Finance) ACTION: Ratified. See above. WARRANT REGISTER JULY 2012 — JUNE 2013 (202-1-27) 21. Warrant Register #22 for the period of 11/21/12 through 11/27/12 in the amount of $2,734,287.72. (Finance) ACTION: Ratified. See above. Book 94 / Page 252 12-18-2012 CONSENT CALENDAR (cont.) TEMPORARY USE PERMITS 2012 (203-1-28) 22. Temporary Use Permit — Christmas with Kids hosted by the Boozefighters Motorcycle Club at 222 E. 3rd Street on December 25, 2012 from 5:00 am to 1:00 pm. The applicant has requested a waiver of fees. (Neighborhood Services) ACTION: Ratified. See above. Motion by Sotelo-Solis, seconded by Rios, to reconsider the item. Carried by unanimous vote. Motion by Sotelo-Solis, seconded by Rios, to approve the Temporary Use Permit with a waiver of $377.70. Carried by unanimous vote. SUCCESSOR AGENCY 2012 (406-10-10) 22a. Consideration of the request from the Successor Agency to obtain a loan from the City of National City to meet obligations of the Successor Agency and payment demands of the State of California's Department of Finance. RECOMMENDATION: City Manager Leslie Deese read into the record the Staff Report recommending that the City Council deny the request due to inability to maintain General Fund contingency reserves if the loan is approved. (See attached Exhibit 'A') ACTION: Motion by Rios, seconded by Sotelo-Solis, to deny the request due to the inability to maintain the General Fund Reserve. Carried by unanimous vote. PUBLIC HEARING STREET VACATION ADMIN 2011-2020 (902-26-6) 23. Public Hearing — Street Vacation of the northerly 160 feet of the alley between 11th and 12th Streets, east of National City Blvd. as part of the Revolution 2 Project. (Applicant: The Focus Group) (Case File No. 2012- 16 SC) (Planning) **Companion Item # RECOMMENDATION: Staff concurs with the Planning Commission determination and recommends approval of the Street Vacation. Staff further recommended that the Public Hearing be continued during which time staff will provide additional notice of the proposed vacation beyond what is required by law. TESTIMONY: A written letter of protest was received from Attorney Douglas Dennington on behalf of the property owner at 1145 National City Blvd. ACTION: Motion by Sotelo-Solis, seconded by Rios, to continue to January 15, 2013. Carried by unanimous vote. Book 94 / Page 253 12-18-2012 ORDINANCES FOR ADOPTION MUNICIPAL CODE 2012 (506-2-27) 24. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ESTABLISHING THE COMPENSATION OF THE MAYOR AND THE CITY COUNCIL. (City Attorney) RECOMMENDATION: Adopt the Ordinance. TESTIMONY: None. ACTION: Motion by Natividad, seconded by Morrison, to adopt the Ordinance. Carried by the following vote, to -wit: Ayes: Cano, Morrison, Natividad, Rios. Nays: Sotelo-Solis. Absent: None. Abstain: None. MUNICIPAL CODE 2012 (506-2-27) 25. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY RESCINDING THE MORATORIUM PROHIBITING NEW PAWNBROKER, SECONDHAND, AND PRECIOUS METAL DEALING AND ESTABLISHMENTS IN NATIONAL CITY, TO WIT: ORDINANCE NO. 2012-2374. (City Attorney) RECOMMENDATION: Adopt the Ordinance. TESTIMONY: None. ACTION: Motion by Natividad, seconded by Rios, to adopt the Ordinance. Carried by unanimous vote. NON CONSENT RESOLUTIONS STREET VACATION ADMIN 2011-2020 (902-26-6) 26. Resolution No. 2012-245. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE EXECUTION OF AN ORDER TO VACATE FOR THE NORTHERLY 160 FEET OF THE ALLEY BETWEEN 11TH AND 12TH STREETS, EAST OF NATIONAL CITY BLVD. AS PART OF THE REVOLUTION 2 PROJECT. (Applicant: The Focus Group) (Case File No. 2012-16 SC) (Planning) **Companion Item # RECOMMENDATION: Adopt the Resolution. TESTIMONY: None. ACTION: Continued to January 15, 2013. No vote was taken. Book 94 / Page 254 12-18-2012 NON CONSENT RESOLUTIONS (cont.) STREET VACATION ADMIN 2011-2020 (902-26-6) 27. Resolution No. 2012-246. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE EXECUTION OF AN ORDER TO VACATE OF THE NORTHERLY 194 FEET OF THE EASTERLY 15 FEET OF G AVENUE, ADJACENT TO 700 EAST 24TH STREET. (Applicant Michelle Snyder — Imperial Group) (Case File No. 2012-07 SC) (Planning) **Continued from the Council meeting of December 4, 2012** RECOMMENDATION: Adopt the Resolution. TESTIMONY: None. ACTION: Motion by Sotelo-Solis, seconded by Natividad, to adopt the Resolution. Carried by unanimous vote. EQUIPMENT / VEHICLE PURCHASE ADMIN (209-1-1) 28. Resolution No. 2012-247. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY WAIVING THE BID PROCESS AND AUTHORIZING THE SOLE SOURCE PURCHASE OF GLOBAL TRAFFIC TECHNOLOGIES (GTT) OPTICOM GPS EQUIPMENT FOR EMERGENCY VEHICLE PREEMPTION AT EIGHT INTERSECTIONS IN NATIONAL CITY THROUGH DDL TRAFFIC, INC., THE AUTHORIZED DEALER FOR ALL GTT OPTICOM PRODUCTS IN SOUTHERN CALIFORNIA, IN THE "NOT TO EXCEED" AMOUNT OF $42,526.69 TO ENHANCE SAFETY AND EMERGENCY VEHICLE RESPONSE TIMES. (Funded through General Fund Contingency Reserve) (Engineering) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None. ACTION: Motion by Natividad, seconded by Rios, to adopt the Resolution. Carried by unanimous vote. CONTRACT (C95-5) 29. Resolution No. 2012-248. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO SIGN A LETTER OF INTENT TO WITHDRAW/TERMINATE FIRE/EMERGENCY MEDICAL DISPATCH SERVICES WITH HEARTLAND COMMUNICATIONS FACILITY AUTHORITY. (Fire) RECOMMENDATION: Staff recommends authorizing the Mayor to sign the Letter of Intent to withdraw/terminate fire/emergency medical dispatch services with the Heartland Communications Facility Authority. TESTIMONY: None. ACTION: Motion by Natividad, seconded by Sotelo-Solis, to adopt the Resolution. Carried by unanimous vote. Book 94 / Page 255 12-18-2012 NON CONSENT RESOLUTIONS (cont.) LABOR RELATIONS CITY CLERK (605-9-1) 30. Resolution No. 2012-249. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AMENDING THE COMPENSATION PLANS FOR ELECTED OFFICIAL AND EXECUTIVE GROUPS BY: INCREASING THE SALARY BAND FOR THE EXECUTIVE RECORDS MANAGEMENT OFFICER POSITION, REDUCING THE COMPENSATION FOR THE ELECTED CITY CLERK POSITION, AND INCREASING THE SALARY FOR THE EXECUTIVE RECORDS MANAGEMENT OFFICER. (City Manager/Administrative Services/HR) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None. ACTION: Motion by Sotelo-Solis, seconded by Natividad, to adopt the Resolution. Carried by unanimous vote. FPPC DISCLOSURE FORM 806 (508-1-2) 31. Resolution No. 2012-250. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ADOPTING FPPC FORM 806, AND AUTHORIZING THE POSTING OF FORM 806 ON THE CITY'S WEBSITE DISCLOSING THE TERM, CURRENT APPOINTEE(S) AND COMPENSATION OF APPOINTED POSITIONS WHICH WOULD ALLOW PARTICIPATION IN THE PROCESS BY THE INDIVIDUAL OFFICIAL CONSIDERED FOR APPOINTMENT. (City Clerk/City Attorney) RECOMMENDATION: Adopt the Resolution. TESTIMONY: None. ACTION: Motion by Natividad, seconded by Rios, to adopt the Resolution. Carried by unanimous vote. NEW BUSINESS PLANNED DEVELOPMENT PERMIT ADMIN 2010 — 2015 (414-1-25) 32. Notice of Decision — Planning Commission approval of a Planned Development Permit and Coastal Development Permit for the expansion of an existing Automotive Dealership at 3131 National City Blvd. in the Coastal Zone. (Applicant: Rudy Erm, Sr.) (Case File 2012-19 PD, CDP) (Planning) RECOMMENDATION: Staff concurs with the decision of the Planning Commission and recommends that the Notice of Decision be filed. TESTIMONY: None. ACTION: Motion by Sotelo-Solis, seconded by Natividad, to file the Notice of Decision. Carried by unanimous vote. Book 94 / Page 256 12-18-2012 NEW BUSINESS (cont.) BAYSHORE BIKEWAY PATH ADMIN (702-11-1) 33. Notice of Decision — Planning Commission approval of a Coastal Development Permit for a Class I Bikeway within the Harbor Drive and Tidelands Avenue right-of-way, between the northern City boundary and Bay Marina Drive in the Coastal Zone. (Applicant: SANDAG) (Case File 2012-21 CDP) (Planning) RECOMMENDATION: Staff concurs with the decision of the Planning Commission and recommends that the Notice of Decision be filed. TESTIMONY: None. ACTION: Motion by Rios, seconded by Sotelo-Solis, to file the Notice of Decision. Carried by unanimous vote. COMMUNITY DEVELOPMENT COMMISSION — HOUSING AUTHORITY OF THE CITY OF NATIONAL CITY NO AGENDA ITEMS STAFF REPORTS POLICY MANUAL ADMIN (110-1-1) 34. Overview of the City of National City's Administrative Policy 04.13, - EmployeeNolunteers Background Checks. (Administrative Services) 34a. Executive Director Brad Raulston reported that the City and its consultant are in the process of holding meetings with the top ten businesses on the amortization list and will be preparing a report and recommendations for City Council consideration in February. CLOSED SESSION REPORT (509-1-4) 34b. Closed Session Report. (City Attorney) City Attorney Claudia Silva reported that the City Council met in closed session and authorized the initiation of litigation against certain parties whose name will not be disclosed at this time in order to not impede the service of process in the litigation. (See attached Exhibit `L') Book 94 / Page 257 12-18-2012 MAYOR — CITY COUNCIL — OTHER ELECTED OFFICIALS City Treasurer Beauchamp spoke of the positive benefits resulting from the pro - business attitude of the City Manager and Staff and said he observed firsthand the very professional response of the Fire Department to an emergency medical call. Vice Mayor Natividad requested information on the Morgan Square Business Improvement District and the status of the Fresh and Easy development; suggested that the former police bicycles be repaired and made available to staff; and the historical photos he saw in storage be displayed and the City consider other ways to utilize street banner poles. Council Member Sotelo-Solis inquired about the situation at 18th Street and Hoover resulting from the recent rain; expressed her belief that the City must continue to move forward with or without redevelopment money by pursuing other funding sources and that she looks forward to continuing to work with her colleagues and expressed thanks to staff for their hard work and wished everyone Merry Christmas and Happy New Year. Council Member Rios inquired about the report on campaign signs since some are still up, reported that the Casa Seniors are now meeting at the Senior Center; thanked staff for all their hard work; reminded everyone about the Spirit of the Holidays event on Saturday and wished everyone Happy Holidays. Council Member Cano informed Vice Mayor Natividad that he also extends his hand to work together on ideas of mutual interest to beautify the city and that he will be coming back with specific issues that he hopes they can work together on. Mayor Morrison was pleased that, for the first time in many years, the Naval base was open to the public for the holiday lighting of the ships and reported that the San Diego Association of Governments (SANDAG) has determined that a National City street project, previously denied for funding was, in fact eligible and would be moving forward as funds become available. The Mayor extended Christmas and holiday greetings to everyone. Book 94 / Page 258 12-18-2012 ADJOURNMENT The meeting was adjourned in memory of Janice Martinelli's mother, Marilyn Zubov. Motion by Rios, seconded by Sotelo-Solis, to adjourn the meeting to the next Regular Meeting of the City Council and Community Development Commission — Housing Authority of the City of National City to be held Tuesday, January 15, 2013 at 6:00 p.m. at the Council Chambers, National City, California. Carried by unanimous vote. The meeting closed at 9:50 p.m. /24e:L/611A- City Jerk The foregoing minutes were approved at the Regular Meeting of February 5, 2013. EXHIBIT 'A' Explanation for City of National City add -on item: The Successor Agency (SA) is requesting to borrow funds from the City of National City to pay the demand detailed in the letter from Steve Szalay of the DOF dated December 14, 2012. The DOF contends there is a $6.1 million residual fund balance in LMIHF and is demanding payment within five working days. Excluding bond proceeds, the estimated total cash on hand in all combined funds of the Successor Agency is $2.5 million. Those funds are needed to meet future obligations of the Successor Agency. The SA has already requested a loan from the County on a prior occasion which was denied. The SA intends to make another request of the County. The most immediate need is approximately $4 million, assuming the SA used current cash on hand reserved for other obligations, but that could increase based on cash flow circumstances. The only eligible fund from the City to make the requested loan is General Fund contingency reserves. As established by City Council Policy 201, Maintenance of Reserve Funds, the City of National City is required to maintain reserve levels for certain funds. The General Fund contingency reserve policy strengthens the City's ability to withstand unexpected financial emergencies that may result from local/national disasters, revenue shortfalls, or other problems directly affecting the City of National City. The minimum target for the General Fund contingency reserve is a range equal to between 25% and 50% of a single year's General Fund operating expenditures. Using the most recently published Comprehensive Annual Financial Statements (CAFR), the City's unassigned General Fund reserve is $7,059,792. With budgeted General Fund operating expenses of $37,478,125, the current reserve level is 18.8%, 6.2% short on the low end of the City Council's targeted range. With an unassigned reserve level of 18%, the City has limited ability, in the case of a local/national disaster, to meet its financial obligations (pay general fund expenditures) for a period of 2.3 months. Given the current fiscal uncertainty with Federal and State funding, it is imperative that the City maintain adequate reserves to provide core services, including emergency response, health & safety programs, and infrastructure operations. The loan requested from the SA of approximately $4 million would take more than half existing reserves and would bring the City's reserve level down to approximately 10%, or one month, of operating expenses. This would make the City financially vulnerable to major economic shift and a significant decrease in its credit rating. Staff does not recommend loaning funds to the Successor Agency due to these concerns and the insecurity of the future property tax funds designated to repay the requested loan. EXHIBIT `L' NATs7 .ITp $D AGENDA OF A SPECIAL MEETING CITY COUNCIL OF THE CITY OF NATIONAL CITY Main Conference Room Civic Center 1243 National City Boulevard National City, California Special Meeting — Tuesday, December 18, 2012 — 5:00 p.m. ROLL CALL CLOSED SESSION CITY COUNCIL Conference with Legal Counsel — Anticipated Litigation Initiation of Litigation Pursuant to Government Code Section 54956.9(c) One Potential Case ADJOURNMENT Next Regular City Council Meeting — Tuesday, December 18, 2012, 6:00 p.m., Council Chambers, Civic Center