STATEMENT OF PROCEEDINGS

COUNTY OF SAN DIEGO BOARD OF SUPERVISORS

REGULAR MEETING

TUESDAY, AUGUST 12, 2003, 9:00 AM

Board of Supervisors North Chamber

1600 Pacific Highway, Room 310, San Diego, California

MORNING SESSION: - Meeting was called to order at 9:05 a.m.

Present: Supervisors Greg Cox, Chairman; Dianne Jacob, Vice Chairwoman; Pam Slater; Ron Roberts; Bill Horn; also Thomas J. Pastuszka, Clerk.

Invocation by Reverend Tessi Aoyama of the Buddhist Temple of San Diego.

Pledge of Allegiance to the Flag led by Tim Fennell, General Manager of the 22nd Agricultural Association.

Approval of Statement of Proceedings/Minutes for the Meeting of July 29, 2003.

ACTION:

ON MOTION of Supervisor Slater, seconded by Supervisor Jacob, the Board of Supervisors approved the Statement of Proceedings/Minutes for the meeting of July 29, 2003.

AYES: Cox, Jacob, Slater, Roberts, Horn

Board of Supervisors’ Agenda Items

Community Services / 1. / SUBCOMMITEE REPORT ON RESPONSIBLE FUTURE DEVELOPMENT OF THE COUNTY ADMINISTRATION CENTER (CAC) WATERFRONT PARK AND CEDAR/KETTNER SITE
2. / NOTICED PUBLIC HEARING:
APPROVE DISPOSITION AND DEVELOPMENT AGREEMENT WITH LAMBERT DEVELOPMENT, LLC AND ASSOCIATED ACTIONS
(4 VOTES)
3. / SET HEARING FOR 9/16/03
RAMONA INTERGENERATIONAL COMMUNITY CAMPUS – ACQUISITION OF ASSESSOR PARCEL NUMBERS 281-191-04, 05, 06; 281-182-06, 12, 13
4. / SET HEARING FOR 3/16/04
PUBLIC HEARING ON FY04-05 STRATEGY FOR COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSHIPS, EMERGENCY SHELTER GRANT, AND HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS PROGRAM FUNDS
[FUNDING SOURCE(S): COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSHIPS, EMERGENCY SHELTER GRANT, AND HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS PROGRAMS]
5. / CALHOME FIRST-TIME HOMEBUYERS GRANT APPLICATION
[FUNDING SOURCE(S): CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT CALHOME PROGRAM]
Health & Human Services / 6. / DESIGNATION OF SCRIPPS MERCY HOSPITAL AS LEVEL I TRAUMA CENTER
Public Safety / 7. / NEGOTIATED PROCUREMENT OF SERVICES FOR PRINT/MAIL AND WEB PAYMENT PROCESSING FOR THE DEPARTMENT OF CHILD SUPPORT SERVICES
[FUNDING SOURCE(S): FEDERAL AND STATE CHILD SUPPORT REVENUE]
Financial & General Government / 8. / ALLOCATION OF COMMUNITY PROJECTS FUNDS
[FUNDING SOURCE(S): COMMUNITY PROJECT BUDGET (0265)]
9. / CHAPTER VIII AGREEMENT TO PURCHASE TAX DEFAULTED LAND #6981 STATE OF CALIFORNIA, DEPARTMENT OF PARKS AND RECREATION
10. / CHAPTER VIII AGREEMENT TO PURCHASE TAX DEFAULTED LAND #6989 CITY OF POWAY
11. / CHAPTER VIII AGREEMENT TO PURCHASE TAX DEFAULTED LAND #6991 STATE OF CALIFORNIA, DEPARTMENT OF PARKS AND RECREATION
12. / CHAPTER VIII AGREEMENT TO PURCHASE TAX DEFAULTED LAND #6992 COUNTY OF SAN DIEGO, DEPARTMENT OF PUBLIC WORKS
13. / CHAPTER VIII AGREEMENT TO PURCHASE TAX DEFAULTED LAND #6995 COUNTY OF SAN DIEGO, DEPARTMENT OF PARKS & RECREATION
14. / FIXING COUNTY SCHOOL DISTRICT AND SPECIAL DISTRICT TAX RATES AND LEVYING TAXES FOR FISCAL YEAR 2003/04
Communications Received / 15. / COMMUNICATIONS RECEIVED
Appointments / 16. / ADMINISTRATIVE ITEM:
APPOINTMENTS
Closed Session / 17. / CLOSED SESSION
Financial & General Government / 18. / LOCAL COMMUNITY PROJECTS: SUPPORT FOR CALIFORNIA COASTAL CLEANUP DAY
19. / LOCAL COMMUNITY PROJECTS GRANTS
[FUNDING SOURCE(S): COMMUNITY PROJECT BUDGET (0263)]
Presentation/Awards / 20. / PRESENTATIONS/AWARDS
Public Communications / 21. / PUBLIC COMMUNICATIONS
Off Docket:
Closed Session / 22. / OFF DOCKET
CLOSED SESSION

8/12/03 4

1. / SUBJECT: / SUBCOMMITEE REPORT ON RESPONSIBLE FUTURE DEVELOPMENT OF THE COUNTY ADMINISTRATION CENTER (CAC) WATERFRONT PARK AND CEDAR/KETTNER SITE (DISTRICTS: ALL)
OVERVIEW:
On May 9, 2000 (20) our Board began exploring the possibility of converting the County Administration Center (CAC) parking lots into a waterfront park. This update includes timely policy recommendations from our committee. In light of the current State budget deficit and in recognition of escalating development costs, today’s recommendations provide an alternative to the Lambert Development, LLC (Lambert) development agreement for the Cedar/Kettner site. These recommendations will allow the County to maintain a timeline that provides for more flexibility given recent budget constraints and ensure the ultimate transformation of the CAC parking lots into an unparalleled waterfront park for present and future residents of San Diego.
FISCAL IMPACT:
Funding has already been allocated for the design phase of the CAC Waterfront Park in the 2003-2004 Operational Plan. The estimated costs for Cedar/Kettner consulting, design and project management costs total $1,300,000.
RECOMMENDATION:
CHAIRMAN COX AND SUPERVISOR ROBERTS:
1.  Receive the staff report on the County Administration Center (CAC) Waterfront Park and Cedar/Kettner site.
2.  Direct the Chief Administrative Officer (CAO) to terminate for convenience the Exclusive Negotiation Agreement (ENA) with Lambert for the private development of the County-owned Cedar/Kettner property
3.  Authorize the CAO to approve and sign an Agreement with Lambert which provides that the County will return Lambert’s deposit in full in recognition that both parties, County and Lambert, agree to the mutual acceptance of and consent to: (a) the termination of the ENA and (b) the fact that both parties engaged in good faith negotiations in full compliance with all contract provisions and any applicable law.
4.  Find, in accordance with Section 15061(b)(3) of California Environmental Quality Act (CEQA) Guidelines, the following action is exempt from provisions of CEQA because it can be seen with certainty there is no possibility this activity may have significant effect on the environment.
5.  Direct the CAO, in accordance with Board Policy F-40, to issue a Request for Statement of Qualifications, to select a qualified consultant from respondent firms, and to negotiate a contract for as-needed consulting and design services to assist the County to develop a combined County parking structure and replacement office building for the Health and Human Services Askew building on the County-owned Cedar/Kettner property.
6.  Establish a capital project, and transfer appropriations of $1,300,000 from Finance and General Government Reserves to the Capital Outlay Fund for planning and design through completion of final construction documents.
7.  Direct the CAO, in accordance with Section 401 et seq of the County Administrative Code, to award and amend a contract for as-needed consulting and design services to develop a combined County parking structure and replacement office building for the Health and Human Services Askew building on the County-owned Cedar/Kettner property for compensation not to exceed $1,300,000.
8.  Direct the CAO to return to the Board in 240 days or less with a new design for a combined County parking structure and replacement office building for the Askew building, and a plan for the financing of all related costs.

ACTION:

Agenda Items 1 and 2 were heard concurrently. (See also Agenda Item 2 on this day)
ON MOTION of Supervisor Roberts, seconded by Supervisor Cox, the Board of Supervisors took action as recommended on Agenda Item 1 Recommendations of Chairman Cox and Supervisor Roberts; and closed the Hearing not accepting the Chief Administrative Officer Recommendations on Agenda Item 2.
AYES: Cox, Jacob, Slater, Roberts, Horn
2. / SUBJECT: / NOTICED PUBLIC HEARING:
APPROVE DISPOSITION AND DEVELOPMENT AGREEMENT WITH LAMBERT DEVELOPMENT, LLC AND ASSOCIATED ACTIONS (DISTRICTS: 1 & 4)
OVERVIEW:
On December 10, 2002 (14), the Board approved the selection of Lambert Development, LLC ("Lambert") for exclusive negotiations with the County to develop the Cedar/Kettner property in downtown San Diego. Negotiation of a Disposition and Development Agreement (DDA) with Lambert has been concluded. Terms of the agreement with Lambert are presented herein. Lambert will build a 167-unit condominium complex on the property and will provide the County with a 662 space parking garage for a County cost of $14,658,186 which is the net cost to the County after sale of the Cedar/Kettner land to Lambert.
The Board is requested to 1) approve a Disposition and Development Agreement with Lambert Development, LLC; 2) make an appropriate finding under the California Environmental Quality Act; 3) receive and consider information on the cost of the other parts of the Waterfront Park Project; 4) authorize staff to solicit proposals from qualified parking garage operators, and if negotiations are successful, award a parking garage management contract; and 5) approve conceptual drawings for the Cedar/Kettner Project.
FISCAL IMPACT:
Approval of the Lambert DDA will obligate the County to a one-time cost of $14,658,186; the Chief Financial Officer will return to the Board within 60 days with a plan for financing this cost. The County currently receives annual net rental revenue from a first floor tenant in the Star Building of $13,800. When the ownership of the land and the Star Building transfers to the developer in March 2004 the rental income will cease and there will be an annual cost to the County of $125,652 for rent of floors two and three. The parking management services contract will be both a service and revenue contract, as a portion of the garage will be available for public (revenue) parking during business hours and the entire garage will be available for revenue parking evening and weekends. A preliminary analysis of garage operating expenses and revenues from the public’s use of the garage was prepared by a local parking garage operator and this study indicated that net revenues of $80,000 will be realized after payment of operating expenses. In addition, there is an estimated annual property tax increment payment to the County of $36,100 upon completion of the project. The recommended actions require the addition of no staff years.
BUSINESS IMPACT STATEMENT:
If the Board approves the proposed DDA with Lambert and the garage project is built, approximately 305 direct construction jobs will be supported during the two-year construction period according to Keyser Marston Associates, Inc. Also, opportunities for the public to park at the County garage during non-business hours may enhance commerce in the Little Italy District.
RECOMMENDATION:
CHIEF ADMINISTRATIVE OFFICER
  1. Find that, based on environmental analysis contained in the Initial Study prepared for the Cedar/Kettner project, the proposed action will not have any significant effect on the environment other than as identified in the Master Environmental Impact Report (MEIR) for the Centre City Community Plan, certified and adopted by the City of San Diego Redevelopment Agency and the San Diego City Council on April 28, 1992 by Resolution Nos. 2081 and 279875 respectively. A Supplemental Environmental Impact Report (SEIR) was certified by the City of San Diego Redevelopment Agency and the San Diego City Council on October 26, 1999, and there is no additional information or data available regarding environmental impacts identified in the MEIR/SEIR. Therefore, a negative declaration, subsequent environmental impact report, supplement to environmental impact report, or an addendum to environmental impact report will not be required for the Cedar/Kettner project and will not be prepared, in accordance with Section 15180 (a) of the California Environmental Quality Act Guidelines (CEQA).
  2. Adopt the following Ordinance after holding a public hearing as required by Government Code Section 25515.2 (4 VOTES):
AN ORDINANCE AUTHORIZING A CONTRACT AGREEMENT FOR THE DISPOSITION AND DEVELOPMENT OF COUNTY OWNED PROPERTY BOUNDED BY KETTNER BOULEVARD, CEDAR STREET, BEECH STREET AND CALIFORNIA STREET (RAILROAD RIGHT OF WAY) IN SAN DIEGO
  1. Authorize the Clerk of the Board of Supervisors to execute five copies of a Disposition and Development Agreement, with Lambert Development, LLC thirty (30) days after adoption of the Ordinance.
  2. Approve Cedar/Kettner Project conceptual drawings detailed in Attachment 10 to the DDA.
  3. In accordance with Section 401, Article XXIII of the County Administrative Code, authorize the Director of the Department of Purchasing and Contracting to issue a competitive solicitation to parking operators for providing parking management and advisory services for the Cedar/Kettner Parking Garage, and upon successful negotiations and determination of a fair and reasonable price, award a contract for a term of five years, with one five year option and up to an additional six months if needed, and to amend the contract as needed to reflect changes to services and funding, subject to approval of the Director of the Department of General Services.
  4. Authorize the Director, Department of General Services, to sign all attachments to the DDA and to perform all other necessary actions to complete the transaction, including specifically, all actions and signatures related to the closing of the Cedar/Kettner property sale (County Parcel No. 2003-0113-A) to Lambert Development LLC and the lease and sublease documents relative to the Star Building.
  5. Direct the Chief Financial Officer to develop a financing plan for the Cedar/Kettner Parking Garage project and return to the Board within 60 days.

ACTION:

Agenda Items 1 and 2 were heard concurrently. (See also Agenda Item 1 on this day)
ON MOTION of Supervisor Roberts, seconded by Supervisor Cox, the Board of Supervisors took action as recommended on Agenda Item 1, Recommendations of Chairman Cox and Supervisor Roberts; and closed the Hearing, not accepting the Chief Administrative Officer Recommendations on Agenda Item 2.
AYES: Cox, Jacob, Slater, Roberts, Horn
3. / SUBJECT: / SET HEARING FOR 9/16/03
RAMONA INTERGENERATIONAL COMMUNITY CAMPUS – ACQUISITION OF ASSESSOR PARCEL NUMBERS 281-191-04, 05, 06; 281-182-06, 12, 13 (DISTRICT: 2)
OVERVIEW:
On May 15, 2001 (10), as recommended by Supervisor Jacob, the Board directed staff to work with the Ramona Intergenerational Community Campus Steering Committee to identify sites to accommodate a new library and a senior center as well as future facilities. On October 16, 2001 (23) the Board authorized staff to enter into negotiations with owners of the preferred site.
On June 18, 2002 (28) the Board approved an Option Agreement, Purchase and Sale Agreement and Joint Escrow Instructions with the Hartjen Family 1983 Trust for a 6.78-acre property located on the north side of the intersection of 12th Street and Main Street in Ramona, California (Thomas Brothers 1152 G6). The Board is requested to set a hearing date for September 16, 2003, to consider exercising the option to purchase.
FISCAL IMPACT:
There is no fiscal impact associated with this request to publish the Notice of Intention to Purchase and set a hearing to consider exercising the option. Should the Board exercise the option on September 16, 2003 and complete the purchase of the property, a current year cost of $2,575,000 will result. Funds are budgeted in KA2987 - Ramona Intergenerational Community Campus Project. This request will result in the addition of no staff years.
RECOMMENDATION:
CHIEF ADMINISTRATIVE OFFICER
  1. Direct the Clerk of the Board of Supervisors to publish the required Notice of Intention to Purchase in accordance with Government Code Sections 25350 and 6063.
2. Set this matter for September 16, 2003, at which time the Board of Supervisors may exercise the option to purchase as outlined in the Option Agreement, Purchase and Sale Agreement and Joint Escrow Instructions dated June 18, 2002, from the Hartjen Family 1983 Trust.