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HomeMy WebLinkAboutAgenda Statement 1986/07/22 Item 17 COUNCIL AGENDA STATEMENT Item 17 Meeting Date 7/22/86 ITEM TITLE: Resolution / 2 L-3 g Approving Southern Home Port Agreement with the Nautical Heritage Society for the tall ship Californian and appropriating nec sary funds SUBMITTED BY: Deputy City Manager Thomson REVIEWED BY: City Manager?i-764 (4/5ths Vote: Yes X No ) At its meeting of May 27th, the City Council approved an initial agreement with the Nautical Heritage Society. This agreement secured the Californian for involvement in the upcoming Diamond Jubilee Celebration, and it also outlined in concept the terms of an ongoing Southern Home Port Agreement. The Californian was awarded $5,000 as part of this initial agreement to be applied toward the annual grant of $25,000. The remaining $20,000 and ongoing agreement were to be brought back to the Council in early FY 1986-87, and they are the subject of this report. Funds were budgeted in the FY 1986-87 Redevelopment Agency Bayfront account to cover the remaining $20,000 first year funding. As of this date, $11 ,500 has been committed from outside sources (Income Property Group has committed $2,500 and the County of San Diego has allocated $9,000 to be applied toward the $25,000). Because the attached three-year agreement is with the City (as opposed to the Redevelopment Agency) it is necessary to award the $20,000 out of the General Fund. This $20,000 appropriation will then be reimbursed to the City by the Redevelopment Agency ($8,500) , San Diego County ($9,000) and IPG ($2,500). If additional contributions are obtained, either the Agency's FY 1986-87 cost could be reduced or the City's FY 1987-88 cost could be reduced. RECOMMENDATION: That Council adopt the resolution approving the agreement and appropriating $20,000 in the Non-Departmental Account. BOARDS/COMMISSIONS RECOMMENDATIONS: N/A DISCUSSION: The attached contract represents the ongoing agreement to obtain Southern Home Port status for the City. The contract provides for a three-year agreement (with a termination clause upon 10 days notice) involving an annual payment of $25,000. It guarantees the ship will be berthed in the Chula Vista Harbor at least twenty days per year, with public tours on at least six holiday or weekend days. All advertising material produced by the ship's organization will include Chula Vista Harbor as the Southern Home Port. The City will also have the right to use the ship in marketing programs promoting the City. At least 48 Sea Cadet positions will be available for youth in the San Diego area, and sufficient insurance will be provided by the ship's organization. Page 2, Item 17 Meeting Date 1/22/86 Included in the FY 1986-87 Redevelopment Agency budget is $20,000 to secure the Southern Home Port designation for the current fiscal year. Council direction included soliciting approximately $10,000 of that amount to reduce the City's initial cost. As of this date, $11 ,500 has been committed from outside sources and the Mayor is pursuing additional funds from other outside entities. The Port District has also budgeted funds to provide a public access dock adjacent to the Chula Vista Pier and to provide initial dredging needed to minimally accommodate the Californian and other historical and recreational vessels. The initial phase of this project is likely to be completed by October. In addition to its financial contribution, Income Property Group has committed to provide basic support services to the Californian when berthed at Chula Vista Harbor (see attached letter). The Quarterdeck Committee in the San Diego area is also being formalized. This Committee is responsible for providing local support and promotion for the Nautical Heritage Society, and for integrating the Society's programs into their specific community. Staff is maintaining close liaison with IPG and the Quarterdeck Committee to coordinate the ship's activities in Chula Vista. Staff is working with IPG, the Quarterdeck Committee, Chamber of Commerce and the Nautical Heritage Society to develop ways to utilize the ship while in port. In addition to the upcoming Diamond Jubilee celebration, a dedication ceremony is scheduled for August 11 (the ship will not be present for this event) and plans are already being formulated for a "Harbor Days" next summer to be co-sponsored by the City and IPG. Staff also encourages Council members and other community leaders to provide suggestions for other potential events in which the ship could be involved. FISCAL IMPACT: The initial $5,000 towards the annual $25,000 grant was awarded by the City during FY 1985-86. It is recommended that the remaining $20,000 be appropriated in the City 's Non-Departmental Account. This amount will be reimbursed by the Redevelopment Agency (up to $8,500) and contributions from outside entities (at least $11 ,500). The net FY 1986-87 cost to the City is thus zero and the net cost to the Redevelopment Agency is a maximum of $8,500. Redevelopment Agency funding is eligible for start-up activities as opposed to on-going operations. Because the agreement is for three years (with a termination clause upon ten days notice), the on-going cost to the General Fund is a maximum of $25,000 in subsequent years, less any future reimbursements from other entities. WPC 0901I DEVELOPMENT•CONSTRUCTION SYNDICATING•LEASING•MANAGEMENT WE DEVELOP AND CONSTRUCT BUILDINGS THAT WORK FOR A LIVING 1060 EIGHTH AVENUE SUITE 405 SAN DIEGO,CA 92101 (619)234-4316 IINCOME PROPERTY GROUP CHULA VISTA MARINA/RV PARK, LTD. May 22, 1986 City of Chula Vista P.O. Box 1087 Chula Vista, California 92012 Attention: Mr. Mark Cox . Public Information Officer Re: Chula Vista Marina Commitment Towards the City of Chula Vista Designation as the Southern Home Port for the Californian Dear Mr. Cox: As you know, the Chula Vista Marina has been active and supportive in the City's effort to secure the third and final "home port" designation for the State official tall ship ambassador, the Californian. We believe the benefits to the City of Chula Vista and the entire South Bay are numerous. This ship will promote the educational and recreational needs of our community as well as further expand the use of the City's beautiful waterfront. It is our understanding that the City has requested assistance from the San Diego Unified Port District to construct appropriate berthing facili- ties for the Californian alongside the Chula Vista Fishing Pier. We commend the City and the Port, and we enthusiastically support the plan. As an indication of our commitment, Chula Vista Marina pledges to: 1. Commit $2,500.00 to partially fund the ship's operation during the first year of home port status beginning July 1986. 2. Provide limited storage space, restrooms, laundry, classroom facilities and transportation assistance for the crew and Sea Cadets while in port. Very truly yours, CHU_' VISTA MARINA/RV PARK, LTD. JQQiotT Ronald J. Mc lliott Partner RJM/dg i t' a CITY OF CHULA VISTA DISCLOSURE STATEMENT APPLICANT'S STATEMENT OF DISCLOSURE OF CERTAIN OWNERSHIP INTERESTS ON ALL APPLICATIONS WHICH WILL REQUIRE DISCRETIONARY ACTION ON THE PART OF THE CITY COUNCIL, PLANNING COMMISSION AND ALL OTHER OFFICIAL BODIES. The following informatiorjmust be disclosed: 1. List the names of all persons having a financial interest in the application. The Nautical Heritage Society is a non-profit organization listed under 5f1 (1) (r) tax rndP (cpP attarhpd) List the names of all persons having any ownership interest in the property involved. N/A 2. If any person identified pursuant to (1) above is a corporation or partnership, list the names of all individuals owning more than 10% of the shares in the corporation or owning any partnership interest in the partnership. N/A 3. If any person identified pursuant to ( 1) above is a non-profit organization or a trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. N/A 4. Have you had more than $250 worth of business transacted with any member of City staff, Boards, Commissions, Committees and Council within the past twelve months? Yes No x If yes, please indicate person(s) Person is defined as: "Any individual , firm, copartnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, this and any other county, city and county, city, municipality, district or other political subdivision, or any other group or combination acting as a unit." (NOTE: Attach additional pages as necessary. ) / Signa'tt - of applicant/date WPC 0701P Steve G. Christman / A-110 Print or type name of applicant • ~ ,In.erpal Revenue Service Departrnent of the Treasury District Director Date: MAR 0 3 1982 Employer Identification Number: fS- 3s)IY3� Accounting Period Ending: December 31 Foundation Status Clas,ification: 170 (b) (1) (A) (vi) and 509 (a) (2) Advance Ruling Period Ends: Nautical Heritage Museum At Dana December 31 , 1983 Point Person to Contact: 24532 Del Prado B.Brewer Dana Point, Ca. 92629 Contact Telephone Number: (213)688-4889 Dear Applicant: Based on information supplied, and assuming your operations will be as stated in your application for recognition of exemption, we have determined you are exempt from Federal income tax under section 501(c) (3) of the Internal Revenue Code. Because you are a newly created organization, we are not now making a final determination of your foundation status under section 509(a) of the Code. However, we have determined that you can reasonably be expected to be a publicly supported organization described in section 170 (b) (1) (A) (vi) and 509 (a) (2) . Accordingly, you will be treated as a publicly supported organization, and not as a private foundation, during an advance ruling period. This advance ruling period begins on the date of your inception and ends on the date shown above. • Within 90 days after the end of your advance ruling period, you must submit to us information needed to determine whether you have met the requirements of the applicable support test during the advance ruling period. If you establish that you have been a publicly supported organization, you will be classified as a section 509(a) (1) or 509(a) (2) organization as long as you continue to meet the requirements of the applicable support test. If you do not meet the public support requirements during the advance ruling period, you will be classified as a private foundation for future periods. Also, if you are classified as a private foundation, you will be treated as a private foundation from the date of your inception for purposes of sections 507(d) and 4940. Grantors and donors may rely on the determination that you are not a private foundation until 90 days after the end of your advance ruling period. If you submit the required information within the 90 days. grantors and donors may continue to rely on the advance determination until the Service makes a final determination of your foundation status. However, •if notice that you will no longer be treated as a section170 (b) (1 ) (A) (VW organization is published in the Internal Revenue Bulletin, grantors and donors may not rely on this determination after the date of such publication. Also, .a- grantor or donor may not rely on this determination if he or she was in part responsible for, or was aware of, the act or failure to act that resulted in your loss of section 170(b) (1 ) (A) (vi)* status, or acquired knowledge that the Internal Revenue Service had given notice that you would be removed from ' classification as a section 170 (b) (1) (A) (Vi)* organization. P.O. Box 2350, Los Angeles, Calif. 90053 to.i Letter1045(D0) (6-77) *and 509 (a) (2) . P • • "'T f If your sourceu of support, or your purposen, charneter, or method of operation change, please let us know so we can consider the effect of the change on your exempt status and foundation status. Also, you should inform us of all changes in your name or address. Generally, you are not liable for social security (FICA) taxes unless you file a waiver of exemption certificate as provided in the Federal Insurance Contributions Act. If you have paid FICA taxes without filing the waiver, you should call us. You - are not liable for the tax imposed under the Federal Unemployment Tax Act (FUTA) . Organizations that are not private foundations are not subject to the excise • taxes under Chapter 42 of the Code. However, you are not automatically exempt from other Federal excise taxes. If you have any questions about excise, employment, or other Federal taxes, please let us know. Donors may deduct contributions to you as provided in section 170 of the Code. Bequests, legacies, devises, transfers, or gifts to you or for your use are deductible for Federal estate and gift tax purposes if they meet the applicable provisions of sections 2055, 2106, and 2522 of the Code. You are required to file Form 990, Return of Organization Exempt from Income Tax, only if your gross receipts each year are normally more than $10,000. If a return is required, it must be filed by the 15th day of the fifth month after the end of your annual accounting period. The law imposes a penalty of $10 a day, up to a maximum of $5.000, when a return is filed late, unless there is reasonable cause for the delay. You are not required to file Federal income tax returns unless you are subject to the tax on unrelated business income under section 511 of the Code. If you are subject to this tax, you must file an income tax return on Form 990-T. In this letter, we are not determining whether any of your present or proposed activities are unrelated trade or business as defined in section 513 of the Code. You need an employer identification number even if you have no employees. If an employer identification number was not entered on your application, a number will be assigned to you and you will be advised of it. Please use that number on all returns you file and in all correspondence with the Internal Revenue Service. Because this letter could help resolve any questions about your exempt status and foundation status, you should keep it in your permanent records. If you have any questions, please contact the person whose name and telephone number are shown in the heading of this letter. Sincerely yours, • ft) *VT' ------ District Director • Letter 1045(D0) (6-77) ACCOUNT NUMBER FUND DEPT. OBJECT PROJECT OUR P.O. REFERENCE 088418 AMOUNT 100 0730 5201 RES #12633 - - 000.04 TOTAL !%0, 00,0.04) 4) CHULA FTA BRANCH CITY OF CHULA VISTA BANK K O OF AMERICA 16-66/1220 '95 E ST,CHULA VISTA,CA 92010 CHULA VISTA, CALIFORNIA 088418 08/13/86 38418 AMOUNT $2U,UO0.01"= DATE CHECK NO. LNEKTY . THOUSAND AND NO/1144 DOLLARS CITY OF CHULA VISTA DIRECTOR OF FINANCE TO THE THE NAUTICAL HERITAGE ORDER F SOCIETY O �i �TCII.'Li 24532 DEL iPRACD DANA ROINT CA 92629 i1'0884 1811' 1: 2 200066 1I: 0 23 2511.80 20 211'