Coronado Common Sense

Q&A On Coronado Becoming Successor Agency To Dissolving CDA

 

City Halls Competing With The Finest Of Homes

 

The San Diego Union-Tribune article was calling out the opulence of the Vista Civic Center, completed in 2010 for more than $50 million and at a square foot cost of $530, in today's dollars. The article declared this building the second most expensive in the County of eighteen structures built since 1958.

Maybe its because we watch as our federal government spends millions . . . billions . . . trillions daily that it seems our politicians have lost touch with reality. As a taxpayer, I am very cognizant of what I spent in my household and work hard to remain within my budget. But I think that when you are given a free piggy bank, as in "other people's money", our politicians may not be a frugral as they might be with their own funds.

 

Your mind can't help but wander to the question, "I wonder what the MOST expensive building in the whole entire County over the last eighteen years was?"

 

Well, let me help you with that question. That would be Chula Vista City Hall built in 2009 at a cost of $54.5 million. The square footage was 122,916 at a cost of $444 a square foot! When you look at the median price of a home in Chula Vista, this seems a little pricey . . . more like a castle than a town hall. The Chula Vista leaders may have done their taxpaying residents wrong.

So how does our Coronado City Hall compare to all this? Well, Coronado built a much smaller facility at only 56,000 square feet for a cost in today's dollars of nearly $36 million. But here's the clincher . . . Coronado outspent every city hall built in San Diego County since 1958 in the cost they spent tricking out the building. Coronado spent $643 per square foot, $113 more per square foot that the ostentatious Vista being watchdogged in this article.

 

Here's the comparison chart:

But we like to give credit where credit is due. So just in case you were wondering who our "fiscally conservative" leaders were in 2004 that approved that expenditure, the following list has been provided for your pleasure:

 

• Mayor Tom Smisek

• Councilmember Casey Tanaka

• Councilmember Phil Monroe

• Councilmember Patty Schmidt

• Councilmember Frank Tierney

Councilmember Carrie Downey replaced Patty Schmidt on December 7th, 2004 and the City Manager at the time was Mark Oschenduszko.

 

If you'd like to see the full story, you'll want to read "City halls are getting fancier" written by Aaron Burgin. Be sure to read the comments.

The Proper Way To Conduct A Meeting

 

I was watching the February 7th City Council Meeting at home last week and decided to write about it this week after several residents made comments to me about a certain action that happened during the meeting.

The action I am discussing took place during Written Communications item 13A: Consideration of Request from Councilmember Downey to Reopen the Orange Avenue Specific Plan (OASP) to Review, Clarify and Possibly Change the Parking Requirements for Commercial Property Within the OASP.

A long conversation ensued for approximately 27 minutes with Councilwoman Denny listening to the others and not speaking. Mayor Tanaka asked for her comments and she went through several of the items mentioned, voicing her opinion (remember that she is a Land Use Attorney that has put her business on hold to serve on the Council) about why certain parking lots in town could not be utilized.

 

In the middle of her explanation, a loud cough is heard but it cannot be discerned if it was a natural cough or one used to get attention. The camera is on Councilwoman Denny. Almost immediately Councilman Ovrom "calls the question", interrupting Ms. Denny in mid-sentence. I was personally shocked as I had never seen the question called when an individual was speaking, it's usually used to quiet a debate between two or more people. The Mayor immediately calls for a motion and a vote is taken and the issue is dead. On a 4-1 vote (with Councilwoman Denny voting no), the Council decides to reopen the OASP. Note that this plan was just put into place a mere ten years ago and at a cost of $300,000 to the taxpayers to create it.

 

In  the past week, I found out that I was not the only resident shocked by the rudeness shown to Councilwoman Denny. It seems to be the "did you see" or "did you hear" topic of the week. Many residents have written to me about it or mentioned it on the street, out of the blue. It was an action that did not sit well with anyone who happened to observe it.

 

So I went to The Official Robert's Rules Web Site to see what they had to say about calling the question. They had twenty frequently asked questions and here was number eleven:

Must debate on a motion stop immediately as soon as any member calls the question?

Answer:
It is a fairly common misconception that, after debate has continued for some time, if any member shouts out “Question!” or “I call the question!” debate must immediately cease and the chair must put the pending question to a vote. This is simply not the case. Any member who wishes to force an end to debate must first obtain the floor by being duly recognized to speak by the chair, and must then move the Previous Question. Such a motion must be seconded, and then adopted by a two-thirds vote, or by unanimous consent. It is not in order to interrupt a speaker with cries of “Question” or “Call the Question,” and even if no one is speaking, it is still necessary to seek recognition. [RONR (11th ed.), p. 202; see also pp. 35-37 of RONRIB.]

Councilman Ovrom was wrong to interrupt Councilwoman Denny and Mayor Tanaka was wrong to allow it. Based on Robert's Rules, it is my belief that Mr. Tanaka and Mr. Ovrom owe a sincere apology to the Councilwoman.

 

Johanna Canlas Returns As Coronado City Attorney

 

Johanna Canlas

Coronado City Attorney-Elect

The City Council will decide at today’s Council meeting whether or not they will authorize the City Manager to execute an Agreement for City Attorney Services with the new law firm . . . or rather the old law firm. The firm of McDougal, Love, Eckis, Boehmer & Foley, in a 4-1 vote (with Councilwoman Denny voting no), was chosen as the “new” City Attorney. The firm met all the criteria: a designated City Attorney (our current substitute); located nearby in La Mesa; had the availability and depth of proposed legal team; and submitted the lowest bid.

 

 

The subcommittee—consisting of Casey Tanaka and Carrie Downey—came up with the criteria. Fourteen legal firms were invited to submit an application. Six responded.  Of the six firms competing for the job, three were out of San Diego; one located in La Mesa (MLEBF); one located in Santa Ana and Riverside; and the last one located in Cardiff-by-the-Sea, San Francisco, LA and Oakland.

 

 

If the City Council authorizes the execution of the agreement, then Johanna Canlas, the proposed City Attorney will be hired on February 1, 2012 and the term is ongoing.  The monthly retainer for general services will increase from $7,800 per month to $10,000 per month.

Today's City Council Meeting Should Be A Real Humdinger

 

There is so much paperwork on this City Council Meeting that everyone would be lucky to get home by 10pm.

 

After Council gets done with the Community Development Agency (CDA) portion of the meeting, they will need a Rip Van Winkle amount of time just to get throught the Closed Session. Check out these lawsuits filed against the City of Coronado:

 

This would indicate that something is terribly wrong in the Land of Oz.

 

I thought that Coronado had terminated all the contracts with lobbyists but I forgot about this one. The Carpi & Clay contract is up for renewal. The firm provides state legislative lobbying services but should probably be discontinued until we need their services again. The City of Coronado has had them on the payroll since March 2005 (going on seven years). This agenda item is mixed in with the Consent Calendar meaning that if not removed, it will be approved with all the other consent items. Last year C&C was paid $42,000 plus expenses. The information begins on page 97 (PDF page 123).

 

 

There’s a public hearing on Consideration Of Adoption Of A Resolution Amending The Policies And Fees For Coronado Recreation Services Facilities And Programs. Like the saying goes, “there’s no free lunch”. Get a facelift on the tennis facilities and someone needs to pay for it. The City is looking to generate revenues to sustain the current $2,471,000 General Fund subsidy. This story starts on page 135 (PDF page 161).

 

 

The second public hearing concerns Nicky Rottens.  The case goes on and on and covers 171 pages. There seems to be some disagreement as to if they should be allowed to expand (and use the parking lots behind the Hardware Store) or if they have violated some ordinances. You'll have to read it yourself because there's just too much to cover in this one small article. It begins on page 171 (PDF page 197). It appears that the request failed at the Planning Commission phase and it is being appealed to City Council. The most interesting item that caught my attention was an attorney letter appearing on page 247 (PDF page 273) citing that the proprietors of Nicky Rottens verbally threatened an opponent to the expansion. Maybe there's a reason for the name of the bar.

 

All the pages noted above may be found in the 01.17.12 Coronado City Council Complete Agenda.

New Coronado City Attorney Position Not Posted

 

The last City Council meeting of 2011 was probably not seen by many Coronado residents as they were hunting down those last Christmas presents and stocking stuffers. But I think this is something that they might want to pay close attention to.

 

During Council Reports on Inter-Agency Committee and Board Assignments (Item 11A), Councilwoman Barbara Denny asked Mayor Tanaka about how the subcommittee (to choose a new Coronado City Attorney) posted the position. The subcommittee consisted of Casey Tanaka and Carrie Downey. The mayor referred the question to City Manager Blair King.

 

I found the answer rather interesting. You may listen to it yourself by going to:

• The City of Coronado website

• Clicking in the lower right corner on [City Council & Planning Videos]

• Clicking on [City Council] for the date 12/20/2011

(It'll start playing immediately so hit the || [the stop button] on the left under the image)

• Scroll down to [Council Reports on Inter-Agency Committee and Board Assignments (Item 11A)]

• To skip to the chase, move the scroll bar until the time reads 26.43 (that's where Councilwoman Denny asks the question I referred to earlier)

 

Let me go back here to say that Morgan Foley had been working as the Coronado City Attorney for more than ten years (since approximately 1998). In fact, he was paid by the city even before he was employed as city attorney. He left about a year ago, not long after the big public outcry about an 18% raise he had received. He replaced himself with Johanna Canlas, an attorney from his firm of McDougal Love Eckis Boehmer & Foley. I understand that Ms. Canlas, who graduated from California Western School of Law in 2001, got Mr. Foley's big salary.

 

So now the contract has run out and it's time to take applications for the Coronado City Attorney position. Here's how they do it in North Carolina—"City extends deadline for applications to city attorney position".  Dallas, Texas; Reno, Nevada and Los Angeles, California—to name just a few—all post theirs on their city website.

 

I knew that the attorney position was available and was watching for it. I never saw it . . . anywhere. And neither did anyone else, probably even the attorneys who were actually qualified for the position.

 

City Manager King stated that they didn't post it on the Coronado City website. It also was not posted in a newspaper and "putting it in a daily journal" (is this a derogatory term for online newspaper?) didn't seem appropriate." Instead, it was sent to about a dozen firms . . . much like you'd invite a dozen friends to a dinner party. I know several excellent attorneys in the Coronado and San Diego areas and they didn't receive a party invitation.

 

So does that mean that McDougal Love Eckis Boehmer & Foley will be reaping the benefits of all those lawsuits discussed in Council Chamber closed sessions? According to their website, this company represents the City of Calexico, the City of Carlsbad, the City of Chula Vista, the City of Coronado, the City of Del Mar, the City of El Cajon, the City of El Centro, the City of Encinitas, the City of Imperial Beach, the City of La Mesa, the City of Lemon Grove, the City of Lynwood, the City of National City, the City of Oceanside, the City of Poway, the City of San Diego, the City of San Marcos, the City of Santee, the City of Solana Beach, the City of Vista, the County of San Diego and SANDAG.

 

So when push comes to shove, who's back do they really have?

First Coronado City Council Meeting Of 2012 Canceled

 

Coronado Hires Interim Public Services Director

 

Coronado, CA (December 15, 2011) – The City of Coronado has appointed former Encinitas City Manager Lauren M. Wasserman to the position of interim Director of Public Services until a permanent replacement can be found for Scott Huth.

 

Huth, who has accepted the City Manager’s position in Del Mar, will leave at the end of December.  Huth worked for the City of Coronado for 22 years, 16 as Director of Public Services, a department that consists of 42 full-time and 19 part-time employees.

 

An open recruitment for a permanent Public Services Director is planned for early next year, said City Manager Blair King.  Wasserman, who begins in Coronado January 3, is not a candidate for the permanent position.

 

Wasserman has worked two previous temporary positions in Coronado. In 2000, he was interim Director of Engineering and Project Development, then in 2009, he served a stint as interim Director of Community Development

 

In addition to holding the City Manager title in Encinitas, Wasserman has served as City Manager in the cities of Montclair and Rancho Cucamonga, and was Director of the Department of Land Use and Planning for the County of San Diego for six years. As a consultant, Wasserman has served as interim City Manager for Imperial Beach and has held various management positions in Oceanside, National City, La Habra and the County of San Bernardino.

 

News release from Janine Zúñiga, Senior Management Analyst, City Manager’s Office

Coronado Debt Discussed At "Speak Out Coronado"

 

Councilmember Barbara Denny points to whiteboard to emphasize City Manager Blair King's answer to community questions.

 

Councilmember Barbara Denny hosts a SPEAK OUT CORONADO meeting each month in the Winn Room that is open to the community. These meetings are designed for residents to attend, ask questions and voice their opinions.

 

 

The SPEAK OUT CORONADO meeting held on November 11, 2011 spoke on the topic of Coronado City Debt. City Manager Blair King, Director of Community Development Rachel Hurst, Director of Administrative Services Leslie Suelter and Senior Management Analyst Janine Zúñiga were all in attendance at the invitation of Councilwoman Denny. Over thirty residents were present and it was a topic that many seemed particularly interested in.

 

 

First, let’s begin with some background on the CDA. In 1985, the City Council formed the Community Development Agency of the City of Coronado (CDA).  The creation of the CDA was a cooperative effort between the City of Coronado and the Coronado Unified School District.  The two entities established a plan in order to eliminate blight caused by inadequate public facilities.

The Community Development Plan, which established the Project Area, was adopted by the City Council when the CDA was formed.  The Project Area includes all privately owned property within the City limits (encompassing approximately 1,955 acres), but excludes approximately 1,300 acres of State and Federally owned property within the City's boundaries.

 

 

All was good and well until the last election when a new State Governor was elected to office. Governor Jerry Brown has zeroed in on the Redevelopment Agencies (RDAs) or CDAs as we title them in Coronado. Coronado was on a short list of municipalities of particular interest and is being investigated. The State Comptroller is auditing the Coronado CDA because he felt our town might have abused redevelopment law. Governor Brown is attempting to close down all the RDAs/CDAs and recollect the monies. This could be a concern for Coronado. The case went to the Supreme Court as recently as November 10, 2011, according to our City Manager.

 

 

Mr. King stated in his presentation that of the CDA monies collected, 2/3s go to the schools and 1/3 goes to the City. Projects rebuilt with this money include the police station, library, tennis facility and all the schools. We have two agreements; one with the hospital foundation (purchasing the land) and one with the movie theater.

 

 

Mr. King spoke about the CDA’s Statement of Indebtedness (SOI) and said it’s not really debt but investment. It may be investment but we still owe for it and are trying to pay it down. So it really is debt, not matter how optimistically you view it. He said that the current SOI is $546 million and had Administrative Director Leslie Suelter read off the numbers as Councilwoman Denny wrote them on the whiteboard.

 

 

Bond debt: $180M

Hospital: $36M

Village Theatre: $2.7M

CDA: $33M

School District: $90M

County Administrative Fees: $7.5 M

City’s loan to CDA: $130M

Affordable Housing: $109M

 

Councilmember Denny asked Ms. Suelter if there was any more. Ms. Suelter replied there was a little more but this was most of it. If you add up the numbers given, they amount to $588.2 million, $42.2 million more than listed on the Statement of Indebtedness ($546M). This is disturbing that the numbers don’t add up.

 

The $35M bond debt issued in 2006 was raised (currently $180M) when the City refinanced it to get a better rate . The City can issue bonds but the CDA cannot. Recalling a council meeting where Bill Huck of Stone & Youngberg approached the dais and encouraged the council to purchase more bonds, I asked Mr. King if the bonds ever went out to bid. He replied no, that Stone & Youngberg had written all the bonds. In my personal opinion, this could be construed as a conflict of interest as Mr. Huck lives in town, is a personal friend to many making financial decisions now and in the past, and sat on the Tunnel Commission (another project that would require the purchase of bonds).

 

 

Mr. King stated that the City and the CDA are “totally separate” entities. I found this statement curious as the Coronado Mayor and Councilmembers conduct both meetings. This is what the Coronado website reports:

 

 

“The City Council assumed the duties and responsibilities of the Agency, serving as Board Members of the Agency, with the Mayor serving as the Agency's Chair.  Certain members of the City staff also serve as staff to the Agency: the City Manager is the Executive Director; the Director of Community Development is the Assistant Executive Director; the City Clerk is the Agency Secretary; and the Director of Administrative Services is the Agency Treasurer.  The City Attorney also serves as the Agency Attorney.”

 

 

Councilwoman Denny then asked the attendees if they felt the City should continue to use debt as a way to fund projects.

 

 

Resident Kevin Reilly commented that he wanted the City to run their finances like he runs his own. He has paid off all his debt and pays for things he has the money for. “I don’t want you to incur debt that I may be responsible for. Bring the debt down to zero and we’ll pay as we go. Coronado could serve as an example of fiscal responsibility for the State and the Nation.”

 

 

Resident Phil Manion asked “What about the city allowing more and more development to gain more property tax money? What about pension benefits that we’re acquiring?” Mr. Manion stated that he still had to work in his seventies and all the city employees were retiring in their fifties with large pensions.

 

 

Mr. King responded that pensions were not a problem but that we should be looking at the salaries.

 

 

Wanting to verify my facts before writing this article, I contacted the City Manager and asked some additional questions. Here were his answers:

 

 

CCS: If the CDA were to go away because of Governor Brown, could you tell me what a successor agency would look like?

 

 

Mr. King: The Successor Agency could be the City of Coronado.  (Remember the CDA and the City are two different agencies.)  If the City does not become the Successor Agency, then the first Taxing Agency that volunteers.  The Successor Agency reports to a 7 member Oversight Board comprised of the following: 2- members of the Board of Supervisors; 1 - Mayor; 1 - County Superintendent of Education; 1 - Chancellor of the Calif. Community Colleges; 1 – Largest Special District in Coronado; 1- appointment by the Mayor.  (yes - this an additional layer of government formed to second-guess the City Council.)

 

 

CCS: How would it pay the debt?

 

 

Mr. King: The Successor Agency would pay “enforceable obligations” as shown on a “recognized payment schedule” from Tax Increment revenue.  However, the legislation leaves many questions unanswered and although we can read the legislation, how the mechanics will work is really unknown and I’m sure will need to be court tested.

 

 

CCS: Would it possibly file for bankruptcy?

 

 

Mr. King: There would be no need to file for bankruptcy.

 

 

CCS: Would there be any consequences to Coronado taxpayers?

 

 

Mr. King: With regard to the question of consequences to Coronado Tax Payers, there are none in the context of risk of bankruptcy or potential increased taxes.  Property tax is capped and functions according to Property 13.  However, consequences as a result of reduced funds for high profile capital projects and ongoing initiatives (such as the purchase of the Hospital property) are significant.  If the Agency cannot pay back its loan to the General Fund, many of the future Capital Improvement Plans will lose their source of funding.

 

 

I really appreciate that Councilmember Denny holds these monthly meetings to talk and listen to the community. It was really nice having the City staff present to answer questions and concerns. This opportunity is not available in a City Council meeting and I am thankful that the City staff came on their own time to respond to the community.

Hens Have Their Day At City Council Meeting

 

Yesterday I attended the beginning of the Coronado City Council meeting. One of the presentations was a Proclamation for National Preparedness Month. I am a board member of CERT (Community Emergency Response Team) so I went up with the other CERT members as Fire Chief Mike Blood accepted the proclamation and said a few words.

 

I couldn't stay very long because I had an appointment to get to but I did stay through Oral Communications, and I was so glad I did. Resident Leslie Crawford (editor of WelcomeToCoronado.com and 3000 Tomatoes) spoke about having two chickens in her yard and she was hilarious.

 

She had the entire room laughing and chuckling  (and maybe a little clucking and cackling) throughout her entire speech. To start your day off in the best possible way, be sure to read her letter to the Council—“Going To The Mat For The Snowflakes.” It will make your day!