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Home My WebLink About2015-05-05 Agenda Packet I declare under penalry of perjury thai I am employed by the Ciry of Chula Vista - -�_ , - in che office of the Ciry Clerk and that -��e,�...� s"%��`� ' I posted the document according co ' — , � q ��r/ � -7„�"- Brown Act re uirements. ��_,_ ,.�..,: .' �-' ,'.. ...._ _.... �` _ fs .,�:; `w' --`�':r�{ d: � � I�J Signed: � �' ..;"� - - „ . . - �. ( cmoF -=�.: ,.sF.-^ .� •�` `• CHULA VISTA ;,., _ .,{- � ,z - o 0 . � � �� Mary Casillas Salas, Mayor Patricia Aguilar, Councilmember Gary Halbert, City Manager Pamela Bensoussan, Councilmember Glen R. Googins, City Attorney John McCann, Councilmember ponna R. Norris, City Clerk Steve Miesen, Councilmember Tuesday, May 5, 2015 5:00 PM Council Chambers 276 4th Avenue, Building A : Chula Vista, CA 91910 REGULAR MEETING OF THE CITY COUNCIL REVISED 5/1/2075 CALL TO ORDER ROLL CALL: Councilmembers Aguilar, Bensoussan, McCann, Miesen and Mayo�Salas PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY A. 15-0117 PRESENTATION OF A PROCLAMATION TO SANDAG MARKETING COMMUNICATIONS MANAGER ELIZABETH COX PROCLAIMING vi�(' 2015 AS NATIONAL BIKE MONTH IN THE CITY OF CHULA VISTA B. 15-0127 PRESENTATION OF THE 2015 CLEAN CHAMPION AWARDS BY THE CITY'S RESOURCE CONSERVATION COMMISSION Ciry aI Chula Visfa ' Page f Ptlnfetl on SH/1015 I City Council Agenda May 5, 2015 C. 15 -0141 PRESENTATION OF A PROCLAMATION TO DIRECTOR OF RECREATION KRISTI MCCLURE HUCKABY, PRINCIPAL RECREATION MANAGER TIM FARMER AND U.S. OLYMPIC TRAINING CENTER EXECUTIVE DIRECTOR TRACY LAMB PROCLAIMING MAY 167 2015 AS KIDS TO PARKS DAY IN THE CITY OF CHULA VISTA D. 15 -0142 PRESENTATION OF A PROCLAMATION TO DIRECTOR OF RECREATION KRISTI MCCLURE HUCKABY, FIRE CHIEF JIM GEERING, FIRE CAPTAIN MIKE FILSON AND AQUATIC SUPERVISOR ELIZABETH KOVAR PROCLAIMING MAY 2015 AS DROWNING PREVENTION MONTH E. 15 -0172 PRESENTATION OF A PROCLAMATION TO CHULA VISTA HIGH SCHOOL DIRECTOR OF CHORAL MUSIC TONY ATIENZA IN RECOGNITION OF THE MAIN ATTRACTION & SILHOUETTES VICTORY F. 15 -0184 PRESENTATION OF A PROCLAMATION TO ELKS LODGE 2011 PROCLAIMING MAY 1 THROUGH MAY 87 2015 AS YOUTH WEEK IN THE CITY OF CHULA VISTA CONSENT CALENDAR (Items 1 - 6) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Councilmember, a member of the public, or staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. 1. 15 -0181 WRITTEN COMMUNICATIONS Memorandum from Councilmember Aguilar requesting an excused absence from the April 2, 2015 City Council Workshop. Staff Recommendation: Council excuse the absence. City of Chula Vista Page 2 Printed on 413012015 2015 -05 -05 Agenda Packet Page 2 City Council Agenda May 5, 2015 2. 15 -0125 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AWARDING THE CONTRACT FOR THE "OXFORD STREET SEWER IMPROVEMENT, BETWEEN BROADWAY TO WEST END OF CUL -DE -SAC, IN THE CITY OF CHULA VISTA, CALIFORNIA (CIP#SW266) PROJECT TO PAL GENERAL ENGINEERING INC. IN THE AMOUNT OF $488,675; WAIVING CITY COUNCIL POLICY NO. 574 -01; AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE ALL CHANGE ORDERS; AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $73,300 Department: Public Works Department Staff Recommendation: Council adopt the resolution. 3. 15 -0134 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE COMPETITIVE FORMAL BID REQUIREMENT, APPROVING AN AGREEMENT WITH THE INVESTMENT BANKING FIRM OF STIFEL NICOLAUS & CO., INC. TO PROVIDE BOND UNDERWRITING SERVICES FOR REFUNDING OF COMMUNITY FACILITIES DISTRICT BONDED DEBT AND CERTIFICATES OF PARTICIPATION BONDED DEBT, IF DEEMED ECONOMICALLY FEASIBLE Department: Finance Department Staff Recommendation: Council adopt the resolution. 4. 15 -0153 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE 2015 BUDGET TO APPROPRIATE $7,634 IN UNANTICIPATED REVENUE FROM THE METROPOLITAN WATER DISTRICT'S LANDSCAPE WATER CONSERVATION REBATE PROGRAM TO THE PUBLIC WORKS PARKS DIVISION BUDGET (4/5 VOTE REQUIRED) Department: Public Works Department Staff Recommendation: Council adopt the resolution. City of Chula Vista Page 3 Printed on 413012015 2015 -05 -05 Agenda Packet Page 3 City Council Agenda May 5, 2015 5. 15 -0154 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONSENTING TO THE TERMINATION OF THE SAN DIEGO COUNTY CITIES JOINT POWERS AGREEMENT FOR RISK MANAGEMENT SERVICES AND RELATED INSURANCE COVERAGES CREATING THE SAN DIEGO POOLED INSURANCE AUTHORITY FOR MUNICIPAL ENTITIES (SANDPIPA) EFFECTIVE JULY 17 2016 AND ASSOCIATED AMENDMENTS TO THE JOINT POWERS AGREEMENT, AND AUTHORIZING THE MAYOR TO EXECUTE ANY DOCUMENTS REQUIRED TO CONFIRM AND IMPLEMENT THESE ACTIONS Department: Human Resources Department Staff Recommendation: Council adopt the resolution. 6. 15 -0159 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACKNOWLEDGING GRANT REQUIREMENTS OF SANDAG TO IMPLEMENT A MULTI -YEAR COASTAL CACTUS WREN HABITAT RESTORATION PROGRAM WITHIN THE CHULA VISTA OTAY RANCH PRESERVE MANAGEMENT AREA, AUTHORIZING ACCEPTANCE OF THE GRANT FUNDING SHOULD IT BE AWARDED FROM SANDAG, AND AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT AGREEMENT WITH SANDAG Department: Development Services Department Staff Recommendation: Council adopt the resolution. ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from discussing or taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. PUBLIC HEARINGS The following item(s) have been advertised as public hearing(s) as required by law. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. City of Chula Vista Page 4 Printed on 413012015 2015 -05 -05 Agenda Packet Page 4 City Council 7. 15 -0081 CONSIDERATION (MOBILEHOMES) SCHEDULE Agenda May 5, 2015 OF AMENDING CHAPTER 18 OF THE CITY'S MASTER FEE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SETTING THE ADMINISTRATIVE FEE FOR RENT CONTROL SERVICES AT $40FOR FISCAL -YEAR 2016 IN CHAPTER 18 (MOBILEHOMES) OF THE CITY'S MASTER FEE SCHEDULE Department: Development Services Department Staff Recommendation: Council conduct the public hearing and adopt the resolution. ACTION ITEMS The Item(s) listed in this section of the agenda will be considered individually by the Council and are expected to elicit discussion and deliberation. If you wish to speak on any item, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. 8. 15 -0006 CONSIDERATION OF APPROVING A FEE DEFERRAL AGREEMENT WITH STONE CREEK CASITAS, LLC RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A DEVELOPMENT IMPACT FEE DEFERRAL AGREEMENT WITH STONE CREEK CASITAS, LLC FOR APPROXIMATELY $1.7 MILLION OF FEES IN CONNECTION WITH A 97 UNIT APARTMENT PROJECT ON MAIN STREET NEAR WALNUT DRIVE Department: Development Services Department Staff Recommendation: Council adopt the resolution. 9. 15 -0106 CONSIDERATION OF ADOPTING A SPECIAL EVENT SPONSORSHIP AND ENDORSEMENT POLICY RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE CITY OF CHULA VISTA SPECIAL EVENT SPONSORSHIP AND ENDORSEMENT POLICY Department: City Manager Staff Recommendation: Council adopt the resolution. CITY MANAGER'S REPORTS City of Chula Vista Page 5 Printed on 413012015 2015 -05 -05 Agenda Packet Page 5 City Council Agenda May 5, 2015 MAYOR'S REPORTS COU NCI LMEMBERS' COMMENTS CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council Meeting at the City Attorney's office in accordance with the Ralph M. Brown Act (Government Code 54957.7). 10. 15 -0185 CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (a) Name of case: Chris Shilling, et al. v. City of Chula Vista, et al., San Diego Superior Court, Case No. 37- 2015- 00006097 -CU -M C -CTL ADJOURNMENT to the Regular City Council Meeting on May 12, 2015, at 5:00 p.m., in the Council Chambers. Materials provided to the City Council related to any open- session item on this agenda are available for public review at the City Clerk's Office, located in City Hall at 276 Fourth Avenue, Building A, during normal business hours. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and /or participate in a City meeting, activity, or service, contact the City Clerk's Office at (619) 691- 5041 (California Relay Service is available for the hearing impaired by dialing 711) at least forty -eight hours in advance of the meeting. Sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online. City of Chula Vista Page 6 Printed on 51112015 2015 -05 -05 Agenda Packet Page 6 .� Emma CITY OF CHULAVISTA File #: 15 -0117, Item #: A. City of Chula Vista Staff Report PRESENTATION OF A PROCLAMATION TO SANDAG MARKETING COMMUNICATIONS MANAGER ELIZABETH COX PROCLAIMING MAY 2015 AS NATIONAL BIKE MONTH IN THE CITY OF CHULA VISTA City of Chula Vista 2015 -05 -05 Agenda Packet Page 1 of 1 Printed on 4/30/2015 powered by LegistarTM Page 7 PROCLAIMING MAY 2015 AS NATIONAL BIKE MONTH IN THE CITY OF CHULA VISTA WHEREAS, the month of May is National Bike Month, which promotes bicycle commuting, safety, and driver awareness of bicycle riders; and WHEREAS, bicycling is a proven emissions -free transportation alternative that encourages active lifestyles, reduces traffic congestion, and improves the "livability" of a community; and WHEREAS, Chula Vista residents can typically reduce their commute costs by bicycling to work or school, even just once a week; and WHEREAS, local businesses can promote bicycling by installing bike parking and other facilities to help customers and employees commute by bicycle; and WHEREAS, the City of Chula Vista officially became recognized this past year as a "Bicycle- Friendly Community" by the League of American Bicyclists; and WHEREAS, the City of Chula Vista currently has over 120 miles of dedicated bike paths, lanes, and routes connecting neighborhoods, shopping centers, and schools, and over 45 additional miles proposed through its Bikeway Master Plan; and WHEREAS, the City distributes free Bike Chula Vista maps at community events and hosted a bike valet as part of the Go Green &Clean Family Day on April 25th at the Otay Ranch Town Center; and WHEREAS, the City and its community partners are sponsoring numerous "pit stops" around Chula Vista as part of this year's Bike to Work Day on Friday, May 15th. NOW, THEREFORE, I, MARY CASILLAS- SALAS, 40th Mayor of the City of Chula Vista, do hereby proclaim May 2015 as National Bike Month and encourage commuters to use alternatives to driving alone, such as biking to work. 2015 -05 -05 Agenda Packet Page 8 .� Emma CITY OF CHULAVISTA File #: 15 -0127, Item #: B. City of Chula Vista Staff Report PRESENTATION OF THE 2015 CLEAN CHAMPION AWARDS BY THE CITY'S RESOURCE CONSERVATION COMMISSION City of Chula Vista 2015 -05 -05 Agenda Packet Page 1 of 1 Printed on 4/30/2015 powered by Legistar Page 9 .� Emma CITY OF CHULAVISTA File #: 15 -0141, Item #: C. City of Chula Vista Staff Report PRESENTATION OF A PROCLAMATION TO DIRECTOR OF RECREATION KRISTI MCCLURE HUCKABY, PRINCIPAL RECREATION MANAGER TIM FARMER AND U.S. OLYMPIC TRAINING CENTER EXECUTIVE DIRECTOR TRACY LAMB PROCLAIMING MAY 161 2015 AS KIDS TO PARKS DAY IN THE CITY OF CHULA VISTA City of Chula Vista 2015 -05 -05 Agenda Packet Page 1 of 1 Printed on 4/30/2015 powered by LegistarTM Page 10 .� Emma CITY OF CHULAVISTA File #: 15 -0142, Item #: D. City of Chula Vista Staff Report PRESENTATION OF A PROCLAMATION TO DIRECTOR OF RECREATION KRISTI MCCLURE HUCKABY, FIRE CHIEF JIM LEERING, FIRE CAPTAIN MIKE FILSON AND AQUATIC SUPERVISOR ELIZABETH KOVAR PROCLAIMING MAY 2015 AS DROWNING PREVENTION MONTH City of Chula Vista 2015 -05 -05 Agenda Packet Page 1 of 1 Printed on 4/30/2015 powered by LegistarTM Page 11 .� Emma CITY OF CHULAVISTA File #: 15 -0172, Item #: E. City of Chula Vista Staff Report PRESENTATION OF A PROCLAMATION TO CHULA VISTA HIGH SCHOOL DIRECTOR OF CHORAL MUSIC TONY ATIENZA IN RECOGNITION OF THE MAIN ATTRACTION & SILHOUETTES VICTORY City of Chula Vista 2015 -05 -05 Agenda Packet Page 1 of 1 Printed on 4/30/2015 powered by LegistarTM Page 12 .� Emma CITY OF CHULAVISTA File #: 15 -0184, Item #: F. City of Chula Vista Staff Report PRESENTATION OF A PROCLAMATION TO ELKS LODGE 2011 PROCLAIMING MAY 1 THROUGH MAY 8, 2015 AS YOUTH WEEK IN THE CITY OF CHULA VISTA City of Chula Vista 2015 -05 -05 Agenda Packet Page 1 of 1 Printed on 4/30/2015 powered by LegistarTM Page 13 .� Emma CITY OF CHULAVISTA File #: 15 -0181, Item #: 1. WRITTEN COMMUNICATIONS City of Chula Vista Staff Report Memorandum from Councilmember Aguilar requesting an excused absence from the April 2, 2015 City Council Workshop. RECOMMENDED ACTION Council excuse the absence. City of Chula Vista 2015 -05 -05 Agenda Packet Page 1 of 1 Printed on 4/30/2015 powered by LegistarTM Page 14 Counoilmernbor Patricia Aguilar " City Of Chula Vista Fourth Avenue Chula Vista, Ca 91910 CITY OF 619.691.5044 — 619.476.5370 Fax CHULA VISTA DATE: April 22, 201 TO: Mayor and City Couneilmernbers CC: City !Manager, City Clerk, City Attorney FROM: Councilmember Patricia Aguilar RE: Absence from Office Dear Mayor and Council members, MEMO Please excuse any absence from the City Council workshop Of April 2, 2015. 1 was unable to attend due to a previous ly- arranged travel commitment. Thank you, Pat Aguilar 2015 -05 -05 Agenda Packet Page 15 .� Emma CITY OF CHULAVISTA File #: 15 -0125, Item #: 2. City of Chula Vista Staff Report RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AWARDING THE CONTRACT FOR THE "OXFORD STREET SEWER IMPROVEMENT, BETWEEN BROADWAY TO WEST END OF CUL -DE -SAC, IN THE CITY OF CHULA VISTA, CALIFORNIA (CIP #SW266)" PROJECT TO PAL GENERAL ENGINEERING INC. IN THE AMOUNT OF $488,675; WAIVING CITY COUNCIL POLICY NO. 574 -01; AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE ALL CHANGE ORDERS; AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTINGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $73,300 RECOMMENDED ACTION Council adopt the resolution. SUMMARY On March 3, 2015, the Director of Public Works received seven (7) sealed bids for the "Oxford Street Sewer Improvement, between Broadway to West End of Cul -de -sac, in the City of Chula Vista, California (CIP#SW266) 35 project. The project scope consists of the removal and replacement of existing sewer pipe and manholes, pavement overlay, and other miscellaneous work to complete the project. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1(b) categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is necessary. BOARD /COMMISSION RECOMMENDATION Not Applicable. DISCUSSION The Oxford Street Sewer Improvement project involves the removal and replacement of approximately 1,200 lineal feet of sewer pipes, sewer laterals connections, removal and replacement of existing sewer manholes, and pavement overlay. Engineering staff prepared the contract documents and advertised the project on February 13, 2015. On March 3, 2015, the Director of Public Works received seven (7) seal bids. The following bids were received: Contractor Bid Amount 1. PAL Engineering Inc. - San Diego, CA $488,675.00 2. Portillo Concrete, Inc. - Lemon Grove, CA 1$494,905.00 City of Chula Vista Page 1 of 3 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by LegistarTM Page 16 File #: 15 -0125, Item #: 2. 3. Southland Paving, Inc. - Escondido, CA $537,585.50 1$5491150.00 4. GRFO, Inc. - Brea, CA 5. Blue Pacific Engineering and Construction- San Diego, CA $569,235.00 6. Burtech Pipeline, Inc.- Encinitas, CA $614,300.00 7. Wier Construction Corp.- Escondido, CA 1$6731850.00 The low bid submitted by PAL Engineering Inc. is below the Engineer's estimate of $520,000 by $31,325 (approximately 6 %). PAL Engineering Inc. is currently an active Licensed Class A - General Engineering Contractor (License No. 916931) and has performed similar work in the City with satisfactory performance. In addition, Pal Engineering Inc. is a Chula Vista registered Contractor, and all companies associated with this contract are registered as a public works contractors with the California Department of Industrial Relations (DIR). Staff reviewed the lowest bid submitted by Pal General Engineering, Inc. and determined that the bid package is complete, with no errors or omissions. Therefore, staff recommends awarding a construction contract to Pal General Engineering Inc. in the amount of $488,675. The proposed resolution would authorize the Director of Public Works to approve change orders over and above existing policy limits. Under City Council Policy No. 574 -01, if an individual change order causes the cumulative increase in change orders to exceed the Director's authority ( "Maximum Aggregate Increase in Change Orders "), then City Council approval is required. The corresponding maximum aggregate contract increase that may be approved by the Director of Public Works under Policy No. 574 -01 is $37,207. Approval of the resolution would increase the Director of Public Works' authority to approve change orders, as necessary, up to the contingency amount of $73,300 (approximately 15% of contract), an increase of $36,093 over Policy No. 574 -01. Increasing the contingency funds will allow staff to continue the project without delay should unforeseen circumstances resulting in increased project costs arise during the course of construction. Wage Statement The Contractor and its subcontractors are required by bid specifications to pay prevailing wage ( "Prevailing Wage Rates ") to persons employed by them for work under this Contract. In accordance with the provisions of Section 1773 of the Labor Code of the State of California, the City of Chula Vista has ascertained the general prevailing wage scales applicable to the work to be done. The prevailing wage scales are those determined by the Director of Industrial Relations, State of California. Disclosure Statement Attachment 1 is a copy of the Contractor's Disclosure Statement. DECISION -MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter City of Chula Vista Page 2 of 3 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by LegistarTM Page 17 File #: 15 -0125, Item #: 2. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This project supports the Strong & Secure Neighborhood goal as it will ensure sustainable and well maintained wastewater infrastructure by increasing existing sewer capacity and insuring the City's wastewater facilities meet the need of the public. CURRENT YEAR FISCAL IMPACT Sufficient TransNet and Trunk Sewer Capital Reserve Funds are available in CIP SW266 to complete the project. Therefore, there are no additional impacts to these funds. The table below summarizes the project construction costs. FUNDS REQUIRED FOR CONSTRUCTION CONTRACT A. Base Contract Amount B. Contract Co $488,675 15% of contract) C. Construction Inspecti $73,300 Design /Survey /Monument Preservation $50,000 $50,000 TOTAL FUNDS REQUIRED FOR CONS $661,975 ONGOING FISCAL IMPACT Upon completion of the project, the improvements will only require routine City maintenance. ATTACHMENTS 1. Disclosure Statement Staff Contact: Patrick C. Moneda, Senior Civil Engineer City of Chula Vista 2015 -05 -05 Agenda Packet Page 3 of 3 Printed on 4/30/2015 powered by LegistarTM Page 18 �r i a f CITY, OF CHULA VISTA DISCLOSURE STATEMENT E • prior a y T Pursuant to a tt upon matters that ill require discretionary action Council Pofiey 10 1 -0 1, + - bk t the Council, Planning CO'Mmission and all other official oodles of the City, a statement of disclosure of t certain ownership or nancia.l interests, payments, or eara ai n contributions for a City of Chula Visa election must be filed. The folio m" g l formatlo must be disclosed: t * * 1. �� List the names o all persons having a financial interest In the subcontractor,, property that i the subject cif �. { application or the w tm 1, .g., owner, applicant, , Y� ntra tV , ieri J4 supplier. � Marla Jahshan, President Abd Jahslian vice President 2. { AAA C ~ i S * t 5 If any person* identified Pursuant to 1 above is a corporation or partnership, list the names of all individuals with a $2000 investment In thiz. business, e rpo atloj a ner ilp ) entity. - Abd Jahshan, dice President - * F • 5 5 Y 1 } . any e o de fx d p l a t to (1) above Is a non-profit or anizatlo . or Est, list the names r of any person serving as Ito of the non-profit organization or as tr toe or beneficiary or trstor of the trust. . t i - 1 ' 4. Please identify pvery person including any agents, e-MP loyces, consultants, 6r independent contracto yon have assigned to represent you b f e the City l�� tl�ls matter, Marla Jahshan, Pruesident. , Abd J i n, Nice President. ` w Y " - Y y 5. Has any person" associated with this e iitraet had any na e'al dealings with an official of the f _ City of Chula Vista as it relates to this contract within the past 12 months? Yes No t N - r T . ' A -Engi ering l roj �t \SM oxford or SII c[#ic ti SW2 -S ci c. t! n final 02 10 1 .docx'' 2015 -05 -05 Agenda Packet - Page 19 r 3 + If Yes, briefly de sciibe the natare of to financial interest the off. ial ** may havd in this contract. + t NJA+ t 6. x t r R Have you made a oontribution of more-than $250 within the past twelve mouths to a. current 3 end er of the, Chula vista City ouacil? No x Yes If yes, wbich Council member? + 7. Have you provided more than $340 or an item of equivalent ivalent value to an o is the City of Chula Vista in the past twelve 1 months? (This includes being a source of income, money to . �. ". refirb a legal debt, gift, loan, etc.) Yes No If Yes, which offloial and what was the nature of item provided? + { r i .. Date:_ 313/2015 - — gn ature of traotoar.pplioantt , + Pal General nineerin la'Jasran Print or type natne of Contractor/Applicant Person is defined as; any individual, firm, co-partn IRS crshi johit venture, asmiation, social club, fraternal orgamization, corporation, estate, trust, receiver, sy .di ate, any other county, cxt � municipality, district, or other political subdivision, -or any other group or combination acting as a unit, Official includes', but is net limited to: Mayor, Council member, Planning Commissioner, � Member hoard passion, or orr�Itt o the City, employee, or staff .embers, r ' t +t t ' - t + •• - + { ' t• t .t •. ...' + + - t t.._.: s ,_. + + t " + t t r 5 : � giro r ng 11 Projects SMSW afford t \S e i eon 1SW -Set t *en final 1 1 .d6 2015 -05 -05 Agenda Packet + Page 20 S RESOLUTION NO. 2015- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS; AWARDING THE CONTRACT FOR THE "OXFORD STREET SEWER IMPROVEMENT, BETWEEN BROADWAY TO WEST END OF CUL -DE -SAC, IN THE CITY OF CHULA VISTA, CALIFORNIA (CIP #SW266)" PROJECT TO PAL GENERAL ENGINEERING INC. IN THE AMOUNT OF $488,675; WAIVING CITY COUNCIL POLICY NO. 574 -01; AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE ALL CHANGE ORDERS; AND AUTHORIZING THE EXPENDITURE OF ALL AVAILABLE CONTIGENCY FUNDS IN AN AMOUNT NOT TO EXCEED $73,300 WHEREAS, On March 3, 2015, the Director of Public Works received seven (7) sealed bids for the "Oxford Street Sewer Improvement, between Broadway to West End of Cul -de -sac, in the City of Chula Vista, California (CIP#SW266) 35 . The project scope consists of the removal and replacement of existing sewer pipe and manholes, pavement overlay, and other miscellaneous work to complete the project; and WHEREAS, The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 1(b) categorical exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is necessary; and WHEREAS, on March 3, 2015, the Director of Public Works received seven (7) seal bids. The following bids were received: CONTRACTOR BID AMOUNT 1. PAL Engineering Inc. — San Diego, CA $488,675.00 2. Portillo Concrete, Inc. — Lemon Grove, CA $494,905.00 3. Southland Paving, Inc. — Escondido, CA $537,585.50 4. GRFO, Inc. — Brea, CA $549,150.00 5. Blue Pacific Engineering and Construction— San Diego, CA $569,235.00 6. Burtech Pipeline, Inc.- Encinitas, CA $6141300.00_ 7. Wier Construction Corp.- Escondido, CA $673,850.00 WHEREAS, The low bid submitted by PAL Engineering Inc. is below the Engineer's estimate of $520,000 by $31,325 (approximately 6 %); and WHEREAS, PAL Engineering Inc. is currently an active Licensed Class A - General Engineering Contractor (License No. 916931) and has performed similar work 2015 -05 -05 Agenda Packet Page 21 Resolution No. 2015 - Page 2 in the City with satisfactory performance; and WHEREAS, Pal Engineering Inc. is a Chula Vista registered Contractor, and all companies associated with this contract are registered as a public works contractors with the California Department of Industrial Relations (DIR); and WHEREAS, in order to approve change orders as necessary to complete the project without delay, staff requests that City Council waive Council Policy No. 574 -01 and increase the Director of Public Works' change order authority to $73,300 and authorize the expenditure of all available contingency funds in an amount not to exceed $73,300; and WHEREAS, sufficient TransNet and Trunk Sewer Capital Reserve Funds are available in the project account for construction costs; and WHEREAS, a breakdown of construction costs is as follows: FUNDS REQUIRED FOR CONSTRUCTION CONTRACT A. Base Contract Amount $488,675 B. Contract Contingencies (Approximately 15% of contract) $73,300 C. Construction Inspection Staff Costs $50,000 D. Design /Survey /Monument Preservation $50,000 TOTAL FUNDS REQUIRED FOR CONSTRUCTION CONTRACT $661,975 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby accept bids and award a Public Works contract to Pal Engineering Inc. in the amount of $488,675; and BE IT FURTHER RESOLVED, that the City Council of the City of Chula Vista does hereby waive Council Policy 574 -01 and authorize the Director of Public Works to approve change orders, as necessary, and expend all available contingency funds in an amount not to exceed $73,300. Presented by Approved as to form by Richard A. Hopkins Glen R. Googins Director of Public Works City Attorney 2015 -05 -05 Agenda Packet Page 22 .� Emma CITY OF CHULAVISTA File #: 15 -0134, Item #: 3. City of Chula Vista Staff Report RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE COMPETITIVE FORMAL BID REQUIREMENT, APPROVING AN AGREEMENT WITH THE INVESTMENT BANKING FIRM OF STIFEL NICOLAUS & CO., INC. TO PROVIDE BOND UNDERWRITING SERVICES FOR REFUNDING OF COMMUNITY FACILITIES DISTRICT BONDED DEBT AND CERTIFICATES OF PARTICIPATION BONDED DEBT, IF DEEMED ECONOMICALLY FEASIBLE RECOMMENDED ACTION Council adopt the resolution. SUMMARY Stifel, Nicolaus and Company was selected via a competitive RFP process in 2013 and is currently under contract to refund Community Facilities District 2001 -1 (San Miguel Ranch). In 2013, a refunding occurred for 5 other CFDs but San Miguel Ranch was not included in the refunding at the time due to not meeting the minimum savings threshold of 5 %. San Miguel Ranch is now above the savings threshold and Stifel has identified other potential candidates for refunding. The refunding candidates include Community Facility District debt and the 2004 and 2006 Certificates of Participation issued for the construction of Phase 1 and 2 of the City's Civic Center. City staff is requesting to waive the competitive formal bid requirement and authorize an agreement for bond underwriting services with Stifel. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that entering into an agreement is not a "Project" as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the actions proposed are not subject to CEQA. BOARD /COMMISSION RECOMMENDATION Not Applicable DISCUSSION The City issued an RFP for bond underwriting services in 2013 in which Stifel, Nicolaus and Company (Stifel) were the successful bidder. The contract for bond underwriting services identified six Community Facility Districts (CFDs) for potential refunding; however, due to market conditions San Miguel Ranch did not meet the City's Debt Policy (Council Policy 220 -05) minimum savings threshold of 5 %. The total principal amount refunded in 2013 was $72 million. The savings generated by the refunding amounted to approximately $8.5 million (11.8 %) for the homeowners that resided in the CFDs. City of Chula Vista Page 1 of 3 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by LegistarTM Page 23 File #: 15 -0134, Item #: 3. In order for Stifel to expand its presence in California, the firm has acquired two investment banking firms that the City has had a long history with. Stifel acquired Stone and Youngberg and De La Rosa and Company. Stone and Youngberg were part of the land- secured financing team that issued a majority of the City's CFDs. De La Rosa and Company has assisted the City with most of the COPS the City has issued. Thus the Stifel team assigned to the City has excellent working knowledge of the City's finances and bright future and is better able to sell the bonds with excellent pricing that benefits the City by reducing the interest rate spreads. Stifel's prior working knowledge of the City's development plans in the east and City finances benefitted the successful 2013 CFD refunding. The Finance department wants to continue the relationship with Stifel and waive the formal bid process by amending the contract in order to act quickly to take advantage of the historically low interest rate environment that currently exists. Interest rates could rise as soon as June if the federal government starts to increase the federal funds rate. The agreement would be amended to include other refunding candidates that are divided into two different types of financings; Community Facility Bonds and Certificates of Participation. The refunding candidates are specifically: • City of Chula Vista Community Facilities District 2001 -1 (San Miguel Ranch) 2005 Improvement Area B Special Tax Bonds (currently under contract with Stifel) • City of Chula Vista Community Facilities District 07 -I (Otay Ranch Village Eleven) 2006 Special Tax Bonds; • City of Chula Vista Community Facilities District 12 -I (McMillin Otay Ranch Village Seven) 2005 Special Tax Bonds; • City of Chula Vista Community Facilities Special Tax Bonds District 13 -I (Otay Ranch Village Seven) 2006 • Chula Vista Public Financing Authority Revenue Refunding Bonds, Series 2005A. • 2004 Certificates of Participation (Civic Center Phase 1) • 2006 Certificates of Participation (Civic Center Phase 2) The Finance Department will bring any contemplated bond refundings for City Council consideration and approval prior to issuing bonds. The underwriting fee will be below $5 per bond issued. Fees charged will be competitive and below average fees charged for similar sized issuances since 2014. Fees will only be paid if the bonds are actually issued. A bond underwriter is a securities dealer who helps government entities bring bond issues to market. The key role it plays is to assist the City in structuring the refunding, securing ratings, if appropriate, and possibly bond insurance, and premarketing and underwriting the refunding bonds. As an underwriter, Stifel will buy the bonds from the City and then resell them to investors. Additional information follows about Stifel. Stifel, Nicolaus & Company Since January 2010, the firm has underwritten as senior or sole manager 109 of the 188 land City of Chula Vista Page 2 of 3 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by LegistarTM Page 24 File #: 15 -0134, Item #: 3. secured bond issues that have come to market. By par amount underwritten, the figures are $1.5 billion out of $3 billion. Stifel is the one of the few underwriters with a national retail sales force. Since 2001, Stifel's bankers, underwriters and sales professionals have structured, brought to market and found investors for over $1.4 billion of land secured bond issues in San Diego County. DECISION -MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500 -foot rule found in California Code of Regulations section 18704.2 (a)(1) is not applicable to this decision. Staff is not independently aware, nor has staff been informed by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Hiring an investment banking firm supports the goal of economic vitality because the investment bankers will evaluate the city's debt and identify potential candidates for refunding therefore saving the City and the citizens of the community on interest paid on outstanding debt. In addition, hiring an investment banking firm supports the goal of operational excellence because the City is proactively managing the City's debt. CURRENT YEAR FISCAL IMPACT There is no direct fiscal impact to the General Fund as a result of the recommended action. Any fees are contingent upon the bonds getting issued. All fees to be incurred will be paid solely from the proceeds of each particular transaction and therefore become part of the cost of issuing the bonds. ONGOING FISCAL IMPACT There is no direct fiscal impact to the General Fund as a result of the recommended action. There are no on -going fiscal impacts. ATTACHMENTS Stifel, Nicolaus & Company Agreement Staff Contact: Phillip Davis, Assistant Director, Finance Department City of Chula Vista Page 3 of 3 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by LegistarTM Page 2 5 THE ATTACH-ED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL Glen R. Googins City Attorney Dated: 30 /5 / jr -I-- - AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND STIFEL, NICOLAUS &COMPANY, INC. TO PROVIDE BOND UNDERWRITING SERVICES 2015 -05 -05 Agenda Packet Page 26 Agreement between City of Chula Vista and Stifel, Nicolaus & Company, Inc. To provide Bond Underwriting Seri ?-ices This agree rent (Agreement), effective l a v 5, 2015. is bev %veen the City- related entit r whose name and business form is indicated on Exhibit A. Paragraph .2. it T . and the entity whose name. business form. place of business and telephone numbers are indicated on Exhibit A, Paragraphs through . (UndenNn'ter), and i made with reference to the followin fact: i E [ TA LS WHEREAS. the City of Chula Vista and Public Financing Authority (PFA) are e valuating the Cite and PFA debt obligations t identiAr candidates for possible refunding if deemed enomicall� feasible. arid: W WHEREAS. the Cit,\T. s interests would be better sealed b f waiving the formal cor petive bidding process for puposes to move fomrard in an expeditious manner to take advanta e of the current low interest rate environment. and: WHEREAS. Stifel. I icolaus & Compan y. Inc. will provide bond under�Nrirting services for the anticipated refunding of several Communitv Facilities Districts and Certificates of Participation if each financing program meets a % minimum savings threshold, as established by Council Police 220-05 anti. WHEREAS. Stifel. I icolau Company, Inc. xvill be compensated onl y if bonds are a tualty refunded, and; WHEREAS. nder\NTiter warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Under\,%Titer to Cit i' and PFA in accordance with the time fu roes and the terns and conditions of this Agreement. [End of Recitals. Next Page Starts Obllgat n, Pr r1'sions.] Page ] Two Paro-.4greenwnl Between the Ciro• of Chula Vista and Stifel. Nicolaus and CoMmm-. Inc. to Provide Bond Underwriting Seri #ices 2015 -05 -05 Agenda Packet Page 27 - 1Users' h tK AppE atal om=,L51Te pN5b c4 P)a-" ?18-- b28 fib?l 90i 9--;_doc- xFinaI OBLIGATORY PROVISIONS PAGES NOW. THEREFORE,, for valuable consideration the City and Undemmter do hereby mutually agree as f 11 OWs All of the Recitals above are incorporated into this Agreement by this reference. ARTICLE I. UNDERWRITEWS OBLIGATIONS A. General 1. General Duties. Underwriter shall perform all of the services described on Exhibit A, Paragraph 7 (General Duties. 2. Scope of Work and Schedule. In performing and delivering the General Duties, Underwriter shall also perform the services, and deliver to City the "Deliverables" described in Exhibit A, Paragraph 8, entitled "Scope of Work and Schedule *„ according to and within the time frames set forth in Exhibit A, Paragraph 8, time being of the essence of this agreement. The General Duties and the work and Deliverables required in the Scope of Work and Schedule shall be referred to as the '`Defined Services.' Failure to complete the Defined Services by the times indicated does not, except at the option of the City, terminate this Agreement. a. Reduaions in Scope of Work. City may independently, or upon request from Under�witerr, from time to time., reduce the Defined Services to be performed by the Underwriter under this Agreement. Upon doing so,, City and Underwriter agree to meet in- good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction. b. Additional Setrvices. In addition to performing the Defined Services, City may require Underwriter to perform additional consulting services related to the Defined Services (Additional Services), and upon doing so in writing, if they are within the scope of services offered by Underwriter, Underwriter vriter shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 10(C), unless a separate fixed fee is othem7ise agreed upon. All compensation for Additional Services shall be paid monthly as billed. Standard of Care. The Underwriter expressly warrants that the work to be performed pursuant to this Agreement. whether Defined Services or Additional Services, shall be performed in accordance with the standard of care ordinarily exercised by members of qW the profession currently practicing under similar conditions and in similar locations. a. A7o ff iver qf Standard Care. Where approval by City is required it is understood to be conceptual approval only and does not relieve the Underwriter of responsibility for complying with all la ws, odes, industry standards, and liability for damages caused by negligent acts; erT rs, omissions., noncompliance with industry standards, or the willful misconduct of the Under writer or its subcontractors. Page Two Parry Agreement Between the 'rn' of Chula f rsra arid . r e1,_AFr r lr a s and r rr cr x, Inc. ^it) I'�-��r � o��r� iac�er�t-ri1f�� rx,Fces 2015 -05 -0 _ en kepr � aEbe al o min l ,51T i cd 4 -0 - ?l - b? - ? 0f .doe f7ir�a1 Page 28 B. Application of Laws. Should a federal or state la w pre -empt a local laxv, or regulation. the [ ndemTit r must comphr with the federal or state laver and irnplern ntina rea.ulati n . No Provision of this Ac-Treement requires the UnderNNTiter to bs ry or enforce compliance with an y provision. perform an y other act, or do any other thing in contravention of federal, state, territorial: or local lamr. retiulation. or ordinance. If compliance with any provision- of this A re r ent violates or could require the l nd nNn'ter to violate anti l '%Nr, the nd r ► :ter a .arees to notify Cite immediatel v in lAn' ino. Should this occur. the City and the UndenNTtter agree that their xvill make appropriate arranp-ements to proceed with Or. if neee ar-t. amend or terminate this Aoueement. or portions of it. expeditiousIx. 1. Subcontractors. Unden),n'ter agrees to take appropriate measures n e ar%, to ensure that all participants utilized by the [ nder- %vaster to complete its oblia..ations under this Agreement, such as subcontractors, compiv with all applicable laws. regulations, ordinances. and policies. whether federal, state. or local, affecting Project implementation. In addition, if a subcontractor is expected to fulfill any responsibilities of the t nderx %n'ter under this Ac..Yreement. the t ndenWiter shall ensure that the subcontractor carries out the Undenvriter's responsibilities as set forth in this Agreement. C. Insurance 1. General. C nderx %Tit r' must procure and maintain, during., the period of performance of this Agreement, and for twelve months after completion. policies of insurance from insurance companies to protect against claims for injuries to persons or damagaes to propert v that rear arise from or in connection with the performance of the work under this Agreement and the results of that work b r the Under triter. his agents. representatives, employees or subcontractors, and provide documentation of same prior to commencement of work. 2. Minimum Scope of Insurance. Coverage must be at least as broad as- a. CG . Insurance Sen.-ices Office Commercial General Liability coverage (occurrence Form CG l ). bAut . Insurance Service Office Form Number CA 0001 co vering Automobile Liability. Code 1 any auto). or c. TVC. Workers' Compensation insurance as required bar the State of California and Emplover's Liabilit y Insurance. d. ` & . Professional Lial flit r or Errors & Omissions LiabilitN 7 insurance appropriate to the Unden%n'tefs profession. Minimum Limits of Insurance. Un enNTit r must maintain limits no less than those included in the table below: l aLle Two Pant• Agreement Berween the On, of Chula irista and SuLel. Mcolmis and ampam% Inc. to Provide Bond _Undeni -ritin r►krces 2015 -05 -05 Agenda Packet Page 29 _Usff!!Shu=K ppD=Roa eT_5U npl5hcdM5"a44-421 Mb284b23 59DfU4 95. do Fi al 0 5. i. General Liability: $1.000,000 per occurrence for bodily injury, personal injure, (Includina including death), and property damage. If Commercial General operations. Liability insurance with a general aggregate limit is used, either products and the general aggregate limit rust apply separately to this completed Project/location or the general aggregate limit must be t tree the operations, as required occurrence limit. applicable) rr. Automobile $1;000,000 per accident for bodily injury, including death, and Liability: property damacle. III . workers' Statutory Compensation $1000.000 each accident Employer`s $1;000,000 disease - pulley limit Liabilit y; $1 ,000.000 disease -each employee i v. Professional $ 1,000,000 each occurrence Liability or Errors & Omissions Liability: Deductibles and Self-insured Detentions. Any deductibles or self- insured retentions must be declared to and approved b y the City. At the option of the Cite, either the insurer will reduce or eliminate such deductibles or self- insured retentions as they pertain to the City, its officers, officials, employees and volunteers; or the Underwriter will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and belated investigations. claim administration,, and defense expenses. Other Insurance Provisions. The general liability, automobile liability, and where appropriate, the worker's compensation policies are to contain, or be endorsed to contain, the following provisions: a. Additional sure .s. City of Chula Vista, its officers, officials, employees, agents. and volunteers are to be named as additional insureds with respect to all policies of insurance, including those with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Underwriter, where applicable, and, with respect to liability arising out of work or operations performed ed b y or on behalf of the Underwriter, including providing materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in the form of an endorsement to the Under miter's insurance using ISO CG 2010 (11/85) or its equivalent. Specifically, the endorsement rust not exclude Products/Completed Operations coverage. b. riniarj� Insurance. The Underwriter`s General Liability insurance coverage must be primary insurance as it pertains to the City, its officers, officials, employees. agents, and volunteers. Any insurance or self-insurance maintained by the City; its officers, officials, employees. r volunteers is wholly separate f`r m the insurance of the Page Two Par , Agreement ent Between the Co— of Chula Pismo and ,StiLel N colays.and C.on1pany, _Inc. to Provide Bond Underivrifiyg Senjces 2015- 05- 05�se�-si }�P e�►ppD l a�umin l , IT mptSk e 5 x444218- b2 4b 3 94fi 5,doc ,ina1 Page 30 [ nderxNn*ter and in no wa v relieves the [ nd mtr'ter from its responsibilit F to proN*ide insurance. c. Cancellation. The insurance policies required by this Aiireement shall not be canceled b r either party except after thir-tNr da vs` prior "Titten notice to the City b f certified mail. return receipt requested. The v %cords ` will endeavor" and "but failure to mail such notice shall impose no obltoatron or liabrlrt v of anv kind upon the c m am its a2rents. or representati res" shall be deleted from all certificates. d. Active A`egrliaence. Co rera e shall not extend to ant indemxut v coverage for the acti ve necylic.,ence of the additional insureds in anv case where an ata-reement to index nif = the additional insured would be invalid. under Subdivision 1 of Section ?782. Of the Civil Code. e. f "air= r of Subrogation. Underwriter's insurer will Provide a Walver of Subrogation in favor of the City for each required polic \r pro Vidina. co per cie for the term required bv is Agreement. . Claims Forms. If General Liabilit , Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coveraee are ivritten on a claims -made foram: a. Reiro Date. The " etro Date" must be shown, and must be before the date of the Agreement or the beginning of the work required b r the Aareement. b. Alainienance and Evidence. Insurance must be maintained and evidence of insurance must be provided for at least five vears after completion of the work required b v the Agreement. c. Cancellation. if coverage is canceled or non - renewed, and not replaced with another claims --made policy form vith a " etro Date" prior to the effective date of the Agreement. the I nderw-niter must purchase "extended reporting-" overa e ' for a minimum of fire year after completion f the work required b f the Agreement. d. Copies. A cop N? of the claims rep rtina. requirements must be submitted to the Lit t r re i e \N7 . 7. Acceptailitt of #_Insurers. Insurance is to be placed vvith licensed insurers admitted to transact business in the Mate of California with a current A.M. Bests rating of no less than A V. If insurance is placed vith a► surplus lines insurer. insurer must be listed on the Mate of California List of Eligible Surplus Lines Ensurers LESLI with a current A.M. Bests ratin of no less than A X. Exception rna v be made for the Mate Compensation Fund when not specifically rated. 8. Vefifi endorsements or policies conform to the requirements of this Agreement. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require, at anv time. complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. 9. Subcontractors. Undem iter must include all subunder miters as insureds under its policies or furnish separate certificates and endorsements for each subunderwriter. All coverage for subunderwriters is subject to all of the requirements included in these specifications. 10. Not a Limitation of Other.0blWations. Insurance provisions under this Article shall not be construed to limit the Under writer's obligations under this Agreement, including Indemnity. { D. Security for Performance 1. Performance Bond. In the event that Exhibit A, at Paragraph 18, indicates the reed for Under vriter to r vide a Performance Bond indicated by a cheek mark in the parenthetical space inu-nediately preceding the subparagraph entitled "performance Bond"), then Underwriter shall provide to the City a performance bond, in the amount indicated at Exhibit , Paragraph 18. in the form prescribed by the City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United Mates Department of Treasury Circular 570, htt : m v 7. m . r as. x �7c 7 , and whose underwriting g limitation 1s sufficient to issue bonds in the amount required by the Agreement, and which also satisfy the requirements stated" in Section 995.660 of the Code of Civil Procedure; except as provided otherwise by -laws or regulations. All bonds signed b are agent must be accompanied by certified copy of such agent's authority to act.. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project 'is located to issue bonds for the limits so required. Form must be satisfactory to the Fisk Manager or City. 2. Letter of Credit. In the event that Exhibit A, at Paragraph 18, indicates the need for Undervvriter to provide a Letter of Credit (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Letter of Credit""), then Underwriter shall provide to the Cit y an irrevocable letter of credit callable by the City at its unfettered discretion by submitting to the bank a letter, signed bv the City Manager, stating that the Undemrriter is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a f rin and amount satisfactory to the Risk Manager or City Attorney which ani unt is indicated in the space adjacent to the term, "'Letter of Credit." in Exhibit A, Paragraph 18. Other Security. In the event that Exhibit A, at Paragraph 18, indicates the need for Underwriter to provide security other than a Perfonnance Egad or a Fetter of Credit (indicated b y a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Underwriter shall provide to the Cite such Page Two Parly A areentent Between the On- - o 'hcr ar Vista and Stif 1. 1 r colaf s and C o rnp m,. hie. ro Prov, de Bond Undenrriting Services 2015 -05 -05 6en�Pagke Page 32 Hers erect D�talRoamtn��i.,51Tem bcdc4 50�- Ua- S?18-8k,?4b?3590fD495_dncx�'irxal other s unity therein listed in a form and amount satisfact r v to the Risk l amer or City Att me �. W E. Business License. t nden\Titer acre s to obtain a business license from the City- and to otherwise c mpiv with Title 5 of the Chula Vista Municipal Code. ARTICLE II. CITY OBLIGATIONS A. Consultation and Cooperation. Cit-r shall regularly consult the nderv%Titer for the purpose of re pie ving the progress of the Defined Services and Schedule. and to provide direction and ouidanee to achieve the objectives of this Agreement. The Cit f shall allow Under �riter access to its office facilities, files and records. as deemed necessary and appropriate bv� the Citv; throughout the term of this AeTeement. In addition. City, arees to pro -vide the materials identified at Exhibit A. Para.raph 9. with the understandinal that dlav in the provision of those materials beyond thirty da ys after authorization to proceed, shall constitute a basis for the justifiable delay- in the-[ ndef- \NTIteris performance. B. Compensation. 1. Followine Receipt of Bill. The t nderxx-rit r will be compensated pursuant to the terns of a Bond Purchase Agreement r in the ease of the refun i c of the C rtifi ate5 of participation. a Certificate Purchase Agreement) approved bar the Cit r Council. Such pa anent will be contingent on the successful closing, of the financinQ pr c.ra. . 2. Supporting information. And# billing, submitted b \r Under%vriter shall contain sufficient information as to the propfietvv of the billing. including pr p rl , executed pavr lls. time records. invoices. contracts. r Nrouchers d 6bin(y in detail the nature of the char( to the Project in order to permit the City to valuate that the amount due and patable is proper. and such billing shall specificallv contain the City's account number indicated on Exhibit A. paragraph 17(C) to be charged upon mal ink such pad {meat. Exclusions. In determining the amount of the compensation City will exclude an y cost: 1 incurred prior t the effective date of this Agreement: or arisincy out f r related to the er7rors. missions. n hcl ne r acts f willful misconduct t the Und r �rit r. its %. %'- - agents. emplvees. or subcontractors. a. Errors and Onfissions, In the event that the Citr Administrator determines that the Und r Witer's nea-lio-ence. errors. r omissions in the performance of work under this Aur rnent has resulted in expense to City treater than %yould have resulted if there were no such ne( licence. errors- omissions. Linden \Titer shall reimburse City for any additional expenses incurred by the City. Nothing in this p r Graph is intended t limit CA,% s rights under other provisions f this c.-Yr em nt. 4. lament Not Final A ro fal. The C ndeni. 7.riter understands and agrees that pavm nt to the Underwriter for an y Project cost does not constitute a it r final decision about Page Two Party -A reer wnt BeNeery the On— of Chula 111.sta and Shy el Vicolazis and CoMMM,. Inc. to Provide Bond Undent•rifing Services 2015 -05 -05 Agenda Packet Page 33 . \Users' heree \AMD 'Roa ire lTcmo5bode4504)a444? 1 - b2S4b? Of 5.dvcxFina] whether that cost is all owable and eligible for payment under the Project and does not constitute a walver of any violation of Underwriter of the terms of the Agreement. The UndeMTiter acknowledoes that City€ will not snake a final determination about the eligibility of an), cost until the final payment has been made on the Project or the results of an audit of the Project requested by the City has been completed, whichever occurs latest. If Citr determines that the Underwriter is not entitled to receive any portion of the compensation due or paid, Cit y will notify the Underwriter in Titin . stating its reasons. The Underwriter agrees that Prjeet closeout will not alter the Underrriter's rep n lblllty to return any funds due City as a result of later refunds; corrections. or other similar transactions, nor will Project closeout alter the right of City to disall ow costs and recover funds provided for the Pr feet on the basis of a later audit or other review. a. Undenvi-it r- '.s hg 'fion to Pay. Upon notification to the Under vriter that specific amounts are owed to City, whether for excess payments or disallowed costs, the Under Triter agrees to remit to City promptly the amounts owed, including applicable interest. ARTICLE III. ETHICS A. Financial Interests of Underwriter 1. Under Titer is Designated as n FPPC Filer. If Underwriter is designated on Exhibit A, Paragraph 14, as an ''FPPC filer," Underwriter is deemed to be a "Under writer" for the purposes of the Political F of rrn Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 14 of Exhibit A; or if none are specified, then as determined by the City Attorney. 2. No Participation in Decision. Regardless of whether Underwriter is designated as an FPPC Filer, Undenwiter shall not make, or participate In making or in any way attempt to use 1~ n emrriter's position to influence a governmental decision in which Under-writer knows or has reason to know Underwriter has a financial interest other than the compensation promised b y this Agreement. Search to Ueterniine Econom*c Interests. Regardless of whether Under Triter is designated as an FPPC Filer; Underwriter warrants and represents that Underwn'ter has diligently conducted a search and in entory of Underwriter's economic interests, as the terra is used in the regulations promulgated by the Farr Political Practices Commission, and has determined that Under writer does not, to the best of Underwriter's know =ledge; have an economic interest which would conflict with Underwriter's duties under this Agreement. 4. Promise Not to Acquire Conflicting Interests. regardless of whether Undemrriter is designated as an FPPC Filer, Underwriter further warrants and represents that Und mrriter will not acquire, obtain, or assume an economic interest during the term of Page Two Para, A reerntent Between the C`in- o Chula Ova and 1i e1. Ni olays and oniga a��. lnc.. to Provide Bond Under►vr11irw Smices 2015 -05 -05 :1 errs gicP p� atalRoamur `tL Temp cde 0-0 -- 2 1 • b?8 h?# UfD�i9 _dc�c Final Page 34 this Agreement rhich would constitute a conflict of interest as prohibited b r the I"air Political Practices Act. l unr to Ads =Ise o Conflicting Interests. Regardless o whether Under-%� ter is d s' n ted as an I~ PPC Filer. Under \Titer further warrants and represents that UnderNwiter will irnmediatel v advise the Cite tt rne'%r if UndemTlter learns of an economic interest of ndemTiter's that may result in a conflict of Merest for the pose of the Fair Political Practices Act. and regulations promulgated thereunder. 6. Specific Warranties Against Economic Interests. tend er\witer warrants. represents and agrees that: Z7 . Neither I, nden, %Titer. nor I.finder% %Titer's immediate farnil'%r members. nor ndem iter's emplovees or aLyents (Undenviiter Associates) *orkincy directly on the refundings listed in Exhibit A presently have nN? interest, directl \r or indirectl y. whatsoever in any property which ma y be the subject matter of the Defined ned Services, or in any propert f within 2 radial miles from the exterior boundaries of am propemr -%Nthi h may be the subject matter of the Defined Services, (Prohibited Interest), other than as listed in Exhibit A. Paraa-raph 14.] b. No promise of future emplo-%rment; remuneration. consideration. gratuity= or other re ward or Rain has been made to Unden wirer or [ ndenv iter Associates in connection \vith Under\,%.riter's performance of this c.-Yreement. [ nder vnier promises to advise Cit,%r of v such promise that may be made during the Term of this Acyreement. or for twelve months thereafter. c. Undenvriter Associates shall not acquire am such Prohibited Interest within the Term of this Acyreernent. or for twelve months after the expiration of this A rreernent. except with the xwitten permission of lt_\ d. Under%NTiter ma v not conduct or solicit any- business for .n \r part to this Agreement. or for am third party that may be in conflict With nder\N-riter's responsibilities under this Agreement. except with the Titten permission of Cite. IV. LIQUIDATED DAMAGES A. Application of Section. The provisions of this section apple if Liquidated mac.-Yes Fate is provided in Exhibit Ai Paragraph 1-3. 1. Estimatinc Damages. It is a kno %xledged b � both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from dela y in performance. The parties ha ve used their Jud ment to arrive at a reasonable amount to compensate for dela. 2. Amount of Penalty. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each Pae Two Party- A oreement Between fh "ire+ of Chula Vista and SfiLel . Nicalaus and `ompam -. Ine. to Provide Bond Undem-rifiLig Services v ces 2015 -05 -05 Agenda Packet Page 35 :lUsers' hen�eK' ppDatal oaming L5\Tcmpk5bc&-,4504W4-421&4b28-4b2---59CfW95.docxFinaI e nse utive calendar daft in excess of the time specified for the completion of the respective work assignment r Deliverable, the [underwriter shall pad the Ci r have withheld from monies due, the sung of Liquidated Damages Rate provided in Exhibit A, Paragraph I (Liquidated Damages Fate). Request for Extension f Time. I the performance f any act required f t nder ��riter is directlr prevented or delavd by reason of strifes. lockouts, labor disputes, unusual governmental delays, acts of God, .fire, floods, epidemics, freight embargoes, or other causes beyond the reasonable control of the Underwriter, as determined by the CA V. Under Titer shall be excused from perf riming that act for the period of time equal to the period of time of the prevention or delay. In the event Underwriter claims the existence of such a delay, the Underwriter Triter shall notify the City's Contract Administrator. or designee. in Tiring of that fact within ten calendar days after the beginning of any such claimed delay. Extensions of time will not be granted for delays to minor portions of work unless it can be sh m that such delays did or will delay the progress of the work. . ARTICLE V. INDEMNIFICATION A. Defense, Indemnity, and Hold Harmless. 1. General Requirement. Except for liability for Design Professional Services covered under Article V.; Section A.., Underwriter shall defend, ind emnifr, protect and hold harmless the City, its elected and appointed officers, agents and employees, from and against any and all claims, demands, causes of action, costs, expenses, liability. loss, damage or injury, in law or equity to property or persons, including -r ngful death; in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Underwriter, its officials, officers, employees, agents; and contractors, arising out of or in connection with the perf rrnance of the Defined Services or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses (including without limitations, attorneys Fees) arising from the sole negligence, active negligence or willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents. officers. or emplovees which ma y be in combination with the active r passive negligent acts or omissions of the Underwriter, its employees, agents or officers, or any third part). 2. Design Professional Services. If Under alter provides design professional sen7ices. as defined by Calif rnia Civil Code section 2782.5, as may be amended from time to time, Underwriter shall defend, ind eninif -r and held the City.. its officials, officers, emplovees, volunteers, and agents free and harmless from any and all claims, demands, causes of action, costs- expenses, liability, loss, damage or injury, in law or equity, to property or persons, including �rongful death, in any manner arising out of, pertaining to, or relating to the negligence. recklessness, r willful misconduct f Underwriter. its Officials. officers, employees, agents, under witers, and contractors arising out of or in connection with the performance of Underwriter's services. Underwriter's duty to defend, indemnify, and hold harmless shall not include any claims or liabilities arising from the Page 1 Two Par1�* Agreement Between the 'f . of hula H to and Sfifel. ]I,'r "colays and ogipgn) Inc. -Io Provide Bond Undenrrifin Services 2015- 05 -05Aen iPe , pDatal oaming L 1TempL5bcde450 -Da- - X218 - b2 4b235901049 .doc %Finzil Page 36 sole ne li ence. active neeheence or willful misconduct of the it v, its wo-ents. officers or employees. This section in no way alters. affects or modifies the Undemq iter= s obli .eations and duties under this Agreement. Costs of Defense and xi-rar 1. Included in the obliclyations in Sections A. 1 and A.2. above. is the UnderNNTiter"s obligation to defend. at Under�Nn'ter`s o Nm cost, expense and risk., anNr and all suits. actions or other legal proceedin s. that rnav be brought or instituted against the City. its directors, officials. officers . emploNrees. aclents and/or volunteers. subject to the limitations in Sections A. 1. and A.2. UndenNn'ter shall pay and satisfy and= judament. a ward or decree that nay be rendered a2yainst Cite or its directors, officials. officers. employees. at eats and/or volunteers. for any and all related legal expenses and costs incurred by each of them, subject to the limitations in Sections A-] . and A.. . Insurance Proceeds. UndenNn*ter-s obligation to indenlnif - shall not be restricted to w insurance proceeds. if any, rcceied bit the fit, its directors officials. officers. employees. agents. and/or volunteers. 5. Declarations. ndemn'ter's obligations under Article V shall not be limited b,%,- any prior or subsequent declaration by the Underx %Triter. 6. Enforcement Costs. I nden Titer agrees to Pay any and all costs City incurs enforcinLy the indemnity and defense provisions set forth in Article V. 7. Sunri gal. ndemTlter's obligations under Article V shall sure -i re the termination of this c.-Yreement. ARTICLE LE 'I. TERMINIATI N OF AGREEMENT A. Termination for Cause. If. throuGh an f cause. Under-%NTiter shall Fail to fulfill in a tirnel T and proper manner 1, nderxNTIter's obliozations under this AcUreement- or if [ nder- %witer shall Violate any of the covenants. agreements or stipulations of this Agreement. Cl r shall have the right to terminate this Agreement by oivincy xvnt -ten notice to [ ndenNTiter of such termination and specifxrino the effective elate thereof at bast fire days before the effe ti =e date of such termination. In that event, all finished or unfinished documents, data, studies, surreys. drawina-s. maps; reports and other materials prepared by [ nderW iter shall. at the option of the Cite, become the property of the City, and l ndcr NTIter shall be entitled to receive just and equitable compensation. in an amount not to exceed that Payable under this c..yreement and less ant darnacles caused it t b r Linder witer's breach. for ariv work satisfactorily completed on such documents and other materials up to the effective date of otic ofTern inatlon. E. Termination ion f Agreement for Convenience of CUN . City may terminate this Agreement at any time and for am reason. by (ivino specific XNTitten notice to Under%NTiter of such termination and specifying the eff ctive date thereof. at least thirty o days before the effective date of such termination. In that event. all finished and unfinished documents and other materials described hereinabo ve shall, at the option of the City. become City's sole and Nee 1 I Two Pam A reement Between the n- of Chula 11rsta and Str el .Xicola s and Com-pqnv, Inc. ra Provide Barrel Underwriting r vim 2015 -05 -05 Agenda Packet Page 37 C:%Users'Sh=KIAMD=t ng lTempl bc&4 04�-& -4218 'b284b23 9Df 95- Final ex lusi re pr perk . If the Agreement is terminated by City as provided in this paragraph. UndemTiter shall be entitled to receive just and equitable compensation, in an amount not to exceed that payable under this Agreement, for any satisfactory work completed on such documents and other materials to the effecti've date of such termination. underwriter h r b expressly Taives any and all claims for damages or compensation arising under this Agreement except as set forth in this section. ARTICLE V11. RIECORD RETENTION AND ACCESS A. Record Retention. During the course of the Project and for three 3 ears following completion. the Under Titer agrees to malntaln, intact and readily accessible. all data. ,documents, reports, records, contracts, and supporting materials relating to the Project as City may require. B. Access to records of Underwriter and Subcontractors. The Undemrriter agrees to permit, and require its subcontractors to permit City or its authorized representatives, upon request, to inspect all Project work. materials, payrolls. and other data, and to audit the books; records, and accounts of the Contractor and its subcontractors pertaining to the Project. C. Project Closeout. The Underwriter agrees that Project closeout does not alter the reporting and record retention requirements of this Agreement. Page 1 Two P rr1t• Agreement Beta+ *eery the Citr of Chula I is a and ShAl, Mcolays and CQLn ,)anv, hic. to 11'rovi e Bond LIndencrifira .. njces 2015 -05 -05 ,,nc�Pa e pp ata\ oamingkL kTemp�5�e454 a4442I8 -8b2 -4b?3 0ft149 .docxF ina) Page 38 Hers eree ARTICLE LE VIII. PROJECT COMPLETION, AUDIT, AND CLOSEOUT A. Project Completion. Within ninety calendar days foll % %Find Project completion or termination b v Cit y. I ndemTiter agrees to submit a final certification of Project expenses and audit reports. as applicable. This section is not applicable to the Undcn *ter. B. Audit of l; nd nvrit rs. Under"n*ter acyrees to perform financial and compliance audits the City= ma v require. The t ndenWiter also agrees to obtain an y other audits reasonabl y required by Cit t. L nderm.Titer aces that Project closeout Will not alter LlndemTiter's audit responsibilities. Audit costs are allowable Project costs. C. Project Closeout. Project closeout occurs when City notifies the UndenNrriter that City has closed the Project. and either forwards the final p �rnent r acknowledges �tledge that the Under NTiter has remitted the proper refund. The Und nwiter agrees that Project closeout bNr Cit%r does not in-%jralidate anv continuing re quirements imposed b r the Agreement or an * unrnet requirements set forth in a iwitten notification from City ARTICLE IX. N41SCELLANEOUS PROVISIONS ISIONS A. Assi nabilit-Nr. The services of UndemTiter are personal to the Ca v, and I ndenNnter shall not assign an v interest in this Acaree ent, and shall not transfer any interest in the same (whether b t assignment or notation); without prior xNTitten consent of Cit +. 1. Limited Consent. Cit r hereb v consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paracyraph 16 to the subundenwiters identified as "Permitted Subundenwiters." . ovirt-nership, Publication, Reproduction and Use of Material. All reports, studies; information. data. statistics. forms. desinsF plans{ procedures. sFsterns and any other materials or properties produced under this Agreement shall be the sole and exclusiVre property f wi t. Flo such materials r properties produced i in %vh l r in part under this Agreement shall be subject to private use. copyrights or patent rights b r Undenwiter in the [united States or in am other eountry without the express �Nn'tten consent of Cit-N . City shall have unrestricted authorit r to publish. disclose (except as rnav be limited b 1 the provisions of the Public Records Act), distribute, and other�,N ise use. cop rris ht or patent. in % Thole or in part. any such reports; studies, data, statistics, forms or other materials or properties produced under this A r ement. C. Independent Contractor. Cmr is interested onl f in the results obtained and Und nvn't r shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Acireement. Cite maintains the right on1v to reject or accept Under - writer's work products. ndcn%nt r and any of the Underwriter's agents. empl ovees or representatives are. for all purposes under this Agreement. independent contractors and shall not be deemed to be employees of City, and none of them shall be entitled to and= benefits to which Cite employees are entitled including but not limited to. Page 1 Two PartrAgreement Between zhe On, o f Chula Vista and Stifel, Mcolous and CoMom-, Inc. io Provide Bond finder writing r vices 2015 -05 -05 Agenda Packet Page 39 -1 sas' bcr � aData), oars �4 lT=W bc&4-i - O�a,"- 4?1&4b284b?35 OfU4 5.dr-cxFira1 overtime. retirement benefits, worker's compensation benefits, injure leave or other leave benefits. Therefore, City will not withhold state or federal income tax. social security tax or any other pa yroll tax, and UndeM iter shall be solely responsible for the p vment of sane and shall hold the City harmless with regard to then. 1. Actions on Behalf of Cite. Except as City may specify in Titing, UndemTiter shall have no authority, express or implied, to act on behalf of City In any capacity whatsoever, as an agent or othemfise. Undem niter shall have no authority, express or implied, to bind Cite or its members. agents. or employees. to any obligation whatsoever. unless expressly provided in this Agreement. 2. No obligations to Third Panties. In connection with the Project, Underwriter agrees and shall require that its agents. employees; subcontractors agree that City shall not be responsible for am obligations r liabilities to any third party, including its agents, 41 employees, subcontractors, or other person or entity that is not a party to this Agreement. Notwithstanding ithstanding that City may have concurred in or approved an y solicitation, subagreement, or third party contract at a ny tier, City shall have no obligation or liability to any person or entity not a party to this Agreement. D. Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement- against City unless ar claim has fiat been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter L-' f the Chula 'Vista Municipal Code, as sane may from time to time be amended, the provisions of rhich are incorporated by this reference ee as if ull y set forth herein, and such policies and procedures used by City in the implementation of sane. Upon request by City, Underwriter shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. E. Administration of Contract. Each part designates the individuals (Contract Administrators) indicated on Exhibit A., Paragraph 12, as that part's contract administrator who is authorized by the part} to represent It in the routine administration of this Aureement. F. Term. This Agreement shall terminate when the parties have complied with all executory provisions hereof. G. orne�'s Fees. Should ar dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorneys' fees and court costs incurred. The ``prevailing part„ shall be deemed to be the party who is awarded substantially the relief sought. H. Statement of Costs. In the event that Underwriter prepares a report or document. or participates in the preparation of a report or document in perfonning the Defined Services. Underwriter shall include, or cause the inclusion of. in the report or document, a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. Page 1 Two Pang. i ree ntent Between Cite 0— o hula ly1sIa an d Sty {e1. Nicr taus and or�r�7c ny, Inc. to Provide and Undenvriling . en- ces 2015 -05 -0 :1 4 Page 40 r.sSP p - 1. Under-writer is Real Estate Broker- and/or Salesman. If the box on Exhibit A. Paragraph 15 is marked. the Under Nriiter and/or its principals is /are licensed with the State of California or some other state as a real estate broker or salesperson. Otherwise, UndemTiter represents that neither ndnNTiter. nor its principals are licensed real estate brokers or salespersons. J. Notices. All notices, demands or requests provided for or permitted to e gi ven pursuant to this Agreement must be in xNn'tinp,. All notices. demands and requests to sent to an F part* shall he deemed t have been pr p riv ceiven r s r F d if rs nalINr served r deposited in the United States rail, addressed to such party. postage prepaid. registered or certified. with return receipt requested; at the addresses identified in this Agreement as the places of Business for each of the desiated parties. K. Integration. This Agreement. together with anv other xNTi t n document referred to r contemplated in it. embodv the entire Aoffeement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor amr provision of it may be amended, modified. waived or dis harcied except by an instrument in Titino executed f the p mr against which enf rcement u h m ndm nt, waiver discharge is sought. L. Capaeihr of Parties. Each si nat ry and p rt r to this Agreement warrants and represents to the other part that it has lea-al authority+ and capacit�� and direction from its principal t enter into this Agreement, and that all necessary resolutions or other actions have been taken so as to enable it to enter into this ire m nt. M. Governinu Lai R ,enue. This Ac2reern nt shall he 2- v rned b, %r and-construed in accordance with the la ws of the State of California. AnNr action ansina. under or relating to this A.c.yreement shall he brought onlxr in the federal or state courts located in ,San Diego County. State of California. and if applicable. the Cit -Nr of Chula Vista. or as close thereto as possible. Venue for this Agreement, and performance under it, shall h the City f Chula Vista. (End of page. Next page is signature page.) Page 1 Two Pam-Aureement Between the On— of hula Vista and Sfifel, Nicolaus and 'ompam% Inc. to Provide Bond Un rn-rifin gs ervices 2015 -05 -05 Agenda Packet Page 41 :\ secs'Six�KVWp = oa=-tl. Templ5bcde4-,&Qa "4218- 9b28 -4b? # 90fG3 ,doc Finai Signature Page to Agreement Between Cite of Chula Vista and Stifel, Nic laws & Compan ,Inc., To Provide Bond Underwriting Services IN WITNESS WHEREOF. Cite and Under writer have executed this Agreement, indicating that they have read and understood sane, and indicate heir full and complete consent to its terms: Cite of Chula Vista Attest: Lonna Norris, Cite Clerk Approved as to form Glen R. Gooins, Cite Attorney MW Exhibit Dist to Agreement: Exhibit A Mayor Stifel, Nicolaus & Company, Inc. Sara obriis Brown Managing Director Page 16 Two Part' Agreement Between the C'i i of Chula Hista and Sine!. Ali olaus and on an -v .Inc. to Provide_ and Llndeng -riling . erg :ices 2015 -05 -0 en Pa t Page 42 secs sere pPl atalRoaming1L51? n 1 kr de a44- 4218- 8b2g4b2 *5 0f04 5.docxFinal Exhibit A to Agreement between Cit F of Chula Vista and S ifel Nicolaus & CoMpanV*F, Inc. Effective late: The Agreement shall take effect upon full execution of the Agreement, as of the effective date stated on page l of the Agreement. 2. Clt �- Related Entity: .. - X f Cit of Chula Vista, a municipal chartered corporation of the State of California The Chula Vista public Financing Authorit % The Chula Vista Industrial evelopment uthori tv, a ( ) Other: (City) Place of Business for Cite and Municipal Financing Authority: City= of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 4. Und m ter: Stifel, Nicolaus & Compan y, Inc. l us'ness Form of Underwriter* ( ) Sole Proprietorship ( ) Partnership { X) Corporation 6. Place of Business. Telephone and Fax Number of nder iter: One Ferrer Building, Suite 275 San Francisco, CA 94111 Phone: (213) 443-5004 FAX: (415) 445 -2395 7, General Duties: a [insert business form] Page l Two art - Agreemem Berween the `it + of 'Jru1 and r 1. Nicolaur and oMWm-, Inc. to Provide Woad Vndermj4ft Services 2015 -05 -05 Agenda Packet Page 43 :1L1sc& hereeKVgpEaw oamino, iTj1Templ5bede450-Oa44-4?1 - 8b284b ' 9DfD495.docxFinaI To provide bond under. riting services and related duties for an anticipated refunding of six Community Facilities Districts in the City of Chula Vista. 8. Scope of Work and Schedule: A. Detailed Scope of Work: 1. Stifel, el. Nie la & Company (Stifel) work with City staff and City" s F in n i l Advisor to develo p a refunding plan for the five Community Facilities Districts (CFD) that are commonly kno wn as: City of Chula Vista Communit ? Facilities District 2001 -1 (San Miguel el Ranch) 2005 Improvement Area B Special Tax Bonds; City of Chula Vista Communit y Facilities District -I tai Ranch Village Eleven) 2006 Special Tax Bonds: • City of Chula Vista Communit y Facilities District trie 12 -1 (McMillin Otay Ranch Village S een 2005 Special Tax Bonds; City of Chula Vista Community Facilities District 13-1 otay Ranch Village Seven) 2006 Special Tax Bonds Chula Vista Public Financing Authority Revenue Refunding Bonds; Series 00 A. 2. Stifel, Nicolaus & Company Stifel shall work with City staff and City's Financial Advisor to develop a refunding plan for the 2004 Certificates f Partici f .ti n. 11. Stifel; Iicolaus & Company (Stifel) shall work with City staffs and pity's Financial Advisor to develop a refunding plan for the 2006 Certificates of Participation that would exceed the % minimum savings threshold. 4. Stifel shall review and cement on the preliminary and final official statements 5. Stifel shall assist the Cite in preparing materials for review by the credit rating agencies, bond insurance companies and investors as appropriate 6. Stifel shall conduct such bond marketing activities as the City and Stifel agree are necessary or desirable in marketing for the bond issuance , 7. Stifel shall assist in the preparation and documentation necessary to timely close each bond issue and sell timely deliver the necessary funds to purchase each bond issue in accordance with the terms of the respective bond purchase agreements 8. Stifel shall meet with the City at its request to discuss economic, environmental, financial and other- conditions affecting the successful completion of the refunding B. Date for Commencement of Undemrriter Services: { X } Same as Effective Date of Agreement Page f Two Pagy Agreement Between the Cron of Chula Hiista and 1? e1, Nicolays and omacniv, Inc. to Provide and Llndenrriting Services 2015 -05 -05 eni Pa ]� t {1l s fsC Fierce l ipp ta) oaming\L5Uempl5bcd 4 - a - - ? k ? - Uf - .docxFin l Page 44 ()Other: C. Dates or Time Limits for eliven of Deliverables: terables: Deliverable No. 1: Completion of Communit ,' Facillt t Districts Refunding identified in Section S.A.I. eIi rerable No. : Completi on o f refunding the ?004 Certificates of Part i ip tion. Deliverable . : Completion of r fan inn. the 006 Certificates of Participation D. Date for completion of all Undem t r er%.i : ecem r 1. 2016. 9. Maten'als Required to Supplied bNt CM? to Underxvriter: 10. Compensation: A. X Single Fixed Fee Arrangement. For performance of all of the Defined Senrie bar Un er n*t r as herein required. City shall pair a single fixed fee in the amounts and at the times r milestones r for the Deliverables set forth bel x : Sincyle Fixed Fee Amount: Not to exceed 1. 0 percent of the par amount of the bond issuance. pa Kahle upon closinp, of the bond sale. Milestone r Event or l;e l i p -rerabl e Amount or Percent of Fixed Fee 1. Interim Monthl,%t Advrances. The Cit r shall make interim m nthl r advances against the compensation due for each phase n a percentage completion basis for each ai-%-en phase such that, at the end of each phase onlNr the compensation for that phase has been paid. An f p ,%rments made hereunder shall be considered as interest free loans that must be returned to the Cit if the Phase is not satisfactrilv completed. If the Phase is satisfact orily completed. the Cit y shall receive credit against the compensation due for that phase. The retention amount or percentacye set forth in Paragraph 19 is to be applied to each interim pa vent such that, at the end of the phase. the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion b y the Contracts Administrator designated herein b r the City =. or such other person as the Cit v Manager shall designate. but onl,%r upon such proof demanded b v the City that has been pr ,%.ided. but in no event shall such interim advance paxpment be made unless the Underwriter shall have represented in writiniz that said percentage of completion of the phase has been performed b r the UndeMn*ter. The practice of makina. interim m nthiv advances shall not convert this a2yreement to a time and materials basis of pafinent. lase 1 Two Parry A areement Between the On— of Chula 1,15ta and Stifel, N -s laws and Compom � Iraq. �� ro�•r a Bond Un eni -nJin erg' m 2015 -05 -05 Agenda Packet Page 45 :l sa' betec lAppData\Ro=insik ? T=W3 de- X50-0 4218 -8b? -4b? *590ft)49 -� -d xFinat B. Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Underwriter- as are separately identified below, , City shall pay the fixed fee associated with each phase of Seri {ices, ti in the amounts and at the times or milestones or Deliverables set forth. UndemTiter shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase; unless Cit y shall have issued a notice to proceed to Underwriter as to said Phase. Phase 1. 2. Fee for Said Phase 1. Interim Monthly Advances. The City shall make interim Monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 18 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City: or such other person as the Cit y Manager shall designate, but only upon such proof demanded by the City that has been provided,. but its no event shall such interim advance payment be rude unless the Underwriter shall have represented in rritin that said percentage of completion of the phase has been performed by the Underwriter. The practice of making interim monthly advances shall not convert this agreement to a the and materials basis of payment. C. Hourly Rate Arrangement For performance of the Defined ned Semi e by Underwriter as herein required, City shall pair Underwriter for the productive hours of time spent by Underwriter in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and collditions: Mt (1) ( ) Not -to- Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Underwriter of time and materials in excess of said Maximum Compensation amount, Underwriter agrees that Underwriter will perform all of the Defined Services herein required of ndem7riter for Noe o Two Par),Agreement Bemwen the 'ttj- of hula law and t 1. 1 i ola c and Loinpan 1,, hi c. to ProiIde Woad Undenrrifing Sen4ces 2015 -05 -05 A enc Paget ;I sers ,eree � L ta\Roamin ll. V1*cmp\5bc�de4 0 -{} 1 - b Page b23 9Qf 1. 9 ,dc�cx � iniil 46 S including all Materials, and other : 1 . Statement of Economic Interests, UnderNATiter Reporting Categories, per Conflict of Interest Code (Chula Vista Municipal Code chapter ..o: (X) Not Applicable. Not an FPC Filer. () FAAC Filer Categor y No. 1. Ire- vestments. sources of income and business interests. Categor y No. 2. Interests in real property. Category{ No. . Investments, business positions interests in real propert * and sources of income subject to the regulatory. permit or licensing authority of the department administering this Agreement. Category go. . Investments and business positions in business entiti y es and sources of income that engage in land development, construction or the acquisition or sale of real property. Category No. . Investments and business positions in business entities and sources of income that; xvithin the past two years, have contracted with the Cite of Chula Vista or the City's Redevelopment Agency to provide services, supplies, materials, machinery or equipment. Category Igo. 6. Investments and business positions in business entities and sources of income that, within the past two years, have contracted with the department administering this Agreement to provide services, supplies. materials. machiner v or equipment. List underwriter Associates interests in real property within 2 radial miles of Project Property.. if any: 15. ()Underwriter is Real Estate Broker and /or Salesman 16. Permitted Subunderriters: Done 1. Bill Processing: Pacye 22 Two Pan)- Agreement Between the 'f)• of h la Kra and fir 1. Nicola s and Compativ. Inc. to Provide Bond . ndenvrifin Services e 2015 -05 -0 :1 erns ieP e l PData \RoamingUXTemp';hc�de450 -W44 4? 1 -SW8 4b? 590 5,doc Pitud Page 48 A. Under -riterf illinQ to he submitted for the follo Ina. period f time: lionthl)r Quarterly X Other: Upon cloina. of hand sale. B. Dav of the Period for submission of Under -%rriter's illin : )First of the Month 15th Dav of each Month End of the Month Other: C. Citv's Account Number: various 18. Security for Performance Performance Bond, S Letter of Credit. S Other Security: T rp Amount: Retention. If this space is checked. then note #it stand inc..r other provisions to the eontrry requirin. the pa vent of compensation to the [ nderxN iter sooner, the City= shall be entitled to retain. at their option{ either the follo Dina "Retention Pereentac..re.. or —Retention Amount` until the City# determines that the Retention Release ase Event, listed below, , has occurred: ( )Retention Percentage: {)Retention Amount: S_ Retention Release vent: Completion of All Under-%N Titer Services Other: Other: The Retention Amount may be released on a monthly Basis provided that Under \Titer has performed said month1v services to the sole satisfaction of the Assistant City Manar /Director of Development Services or his desicrnee. Page 2 Two Para; A reement Berween the City* of Chula Vivo and ShLel. NI 0la s and CQmWni Ine. to Provide Bond ndent-rifing Sem s 2015 -05 -05 Agenda Packet Page 49 ;1User' hffee kApp t Tow= g E5 Uemp�5 bc&45&Oa4 421 &-8b2 84b2--- 5 docxFinal RESOLUTION NO. 2015- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE COMPETITIVE FORMAL BID REQUIREMENT, APPROVING AN AGREEMENT WITH THE INVESTMENT BANKING FIRM OF STIFEL NICOLAUS & CO., INC. TO PROVIDE BOND UNDERWRITING SERVICES FOR REFUNDING OF COMMUNITY FACILITIES DISTRICT BONDED DEBT AND CERTIFICATES OF PARTICIPATION BONDED DEBT, IF DEEMED ECONOMICALLY FEASIBLE WHEREAS, Stifel, Nicolaus and Company is currently under contract to refund Community Facilities District 2001 -I (San Miguel Ranch); and WHEREAS, San Miguel Ranch is now above the savings threshold and Stifel identified other potential candidates for refunding; and WHEREAS, the refunding candidates include two types of financings Community Facility District debt and Certificates of Participation: and WHEREAS, specifically the refunding candidates are • City of Chula Vista Community Facilities District 2001 -1 (San Miguel Ranch) 2005 Improvement Area B Special Tax Bonds (currently under contract with Stifel) • City of Chula Vista Community Facilities District 07 -I (Otay Ranch Village Eleven) 2006 Special Tax Bonds; • City of Chula Vista Community Facilities District 12 -I (McMillin Otay Ranch Village Seven) 2005 Special Tax Bonds; • City of Chula Vista Community Facilities District 13 -I (Otay Ranch Village Seven) 2006 Special Tax Bonds • Chula Vista Public Financing Authority Revenue Refunding Bonds, Series 2005A. • 2004 Certificates of Participation (Civic Center Phase 1) • 2006 Certificates of Participation (Civic Center Phase 2); and WHEREAS, the Stifel team assigned to the City has excellent working knowledge of the City's finances and bright future and is better able to sell the bonds with excellent pricing that benefits the City by reducing the interest rate spreads ; and WHEREAS, the Finance department wants to continue the relationship with Stifel and waive the formal bid process in order to act quickly to take advantage of the historically low interest rate environment that currently exists, and WHEREAS, the Finance Department will bring any contemplated bond refundings for City Council consideration and approval prior to issuing bonds; and WHEREAS, Fees charged will be competitive and below average fees charged for similar sized issuances since 2014; and 2015 -05 -05 Agenda Packet Page 50 Resolution No. 2015 - Page 2 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista approves an Agreement in the form presented with such minor modifications as May be required or approved by the City Attorney, with the bond underwriting firm of Stifel, Nicolaus and Company, to provide underwriting services for refunding of Community Facilities District bonded debt and Certificates of Participation debt, if deemed economically feasible, and are identified as • City of Chula Vista Community Facilities District 2001 -1 (San Miguel Ranch) 2005 Improvement Area B Special Tax Bonds (currently under contract with Stifel) • City of Chula Vista Community Facilities District 07 -I (Otay Ranch Village Eleven) 2006 Special Tax Bonds; • City of Chula Vista Community Facilities District 12 -I (McMillin Otay Ranch Village Seven) 2005 Special Tax Bonds; • City of Chula Vista Community Facilities District 13 -I (Otay Ranch Village Seven) 2006 Special Tax Bonds • Chula Vista Public Financing Authority Revenue Refunding Bonds, Series 2005A. • 2004 Certificates of Participation (Civic Center Phase 1) • 2006 Certificates of Participation (Civic Center Phase 2) a copy of which is on file in the office of the City Clerk. Presented by Approved as to form by Maria Kachadoorian Glen Googins Deputy City Manager /CFO City Attorney 2015 -05 -05 Agenda Packet 2 Page 51 .� Emma CITY OF CHULAVISTA File #: 15 -0153, Item #: 4. City of Chula Vista Staff Report RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE 2015 BUDGET TO APPROPRIATE $7,634 IN UNANTICIPATED REVENUE FROM THE METROPOLITAN WATER DISTRICT'S LANDSCAPE WATER CONSERVATION REBATE PROGRAM TO THE PUBLIC WORKS PARKS DIVISION BUDGET (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council adopt the resolution. SUMMARY Over the last few months, staff has worked to install weather - based, "smart" irrigation controllers at 21 park sites and roadway medians in order to help reduce municipal water use. As a result, the City has received $7,634 in rebates from the Metropolitan Water District's landscape water conservation program. Staff is requesting that the unanticipated revenue be appropriated to the Public Works budget to support additional park water - saving and maintenance projects. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378(b)(2) of the State CEQA Guidelines, because the activity consists of an administrative action, which will not result in a direct or indirect adverse physical impacts to the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. BOARD /COMMISSION RECOMMENDATION Not Applicable DISCUSSION Municipal facilities and operations consume over 924,000 hundred cubic feet of water annually costing over $4.6 million in utility expenses. In addition to rising water rates, the need to reduce municipal water use has become heightened due to ongoing drought conditions statewide. On April 1 st, Governor Jerry Brown issued a new Executive Order that imposed restrictions to achieve a statewide 25% reduction in urban potable water use compared to 2013 levels. Over the last few months, staff has worked to upgrade irrigation controllers at 21 park sites and roadway medians with "smart" technology. These new controllers (and their associated 120 irrigation stations) allow staff to remotely manage irrigation schedules and adjust for precipitation and evapotranspiration rates. In addition to reducing water use by at least 10 %, the new controllers significantly lower the staff time needed to make onsite adjustments to irrigation systems. As a result of the water - saving upgrades, the City received $7,634 in rebates from the Metropolitan City of Chula Vista Page 1 of 2 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by LegistarTM Page 52 File #: 15 -0153, Item #: 4. Water District's landscape water conservation program. Staff requests that this unanticipated revenue be appropriated to the Public Works Department budget to support additional park water conservation and maintenance projects. DECISION -MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500 -foot rule found in California Code of Regulations section 18705.2 (a)(11), is not applicable to this decision. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Water- saving retrofits support the Healthy Community goal by preserving the limited natural resource and lowering greenhouse gas emissions. CURRENT YEAR FISCAL IMPACT The $7,634 appropriation has no net - impact to the General Fund, because these one -time revenues will offset the one -time expenditures. ONGOING FISCAL IMPACT The $7,634 appropriation to the General Fund is a one -time activity, so there are no ongoing fiscal impacts associated with the budget amendment. Future municipal utility and maintenance cost savings may be realized from the landscape retrofit efforts. ATTACHMENTS None Staff Contact: Brendan Reed City of Chula Vista 2015 -05 -05 Agenda Packet Page 2 of 2 Printed on 4/30/2015 powered by LegistarTM Page 53 RESOLUTION NO. 2015- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE 2015 BUDGET TO APPROPRIATE $7,634 IN UNANTICIPATED REVENUE FROM THE METROPOLITAN WATER DISTRICT'S LANDSCAPE WATER CONSERVATION REBATE PROGRAM TO THE PUBLIC WORKS PARKS DIVISION BUDGET WHEREAS, municipal facilities and operations consume over 924,000 hundred cubic feet of water annually costing over $4.3 million in utility expenses; and WHEREAS, the need to reduce municipal water use has become heightened due to ongoing drought conditions statewide; and WHEREAS, the City has worked to upgrade irrigation controllers at 21 park sites and roadway medians with "smart" technology that allows staff to remotely manage irrigation schedules and adjust for precipitation and evapotranspiration rates; and WHEREAS, in addition to reducing water use by at least 10 %, the new controllers significantly lower the staff time needed to make onsite adjustments to irrigation systems. NOW, THEREFORE, the City Council of the City of Chula Vista does hereby amend the fiscal year 2015 budget to appropriate $7,634 to the Public Works Department's Services & Supplies budget to be offset by unanticipated revenue. Presented by Approved as to form by Richard A. Hopkins Glen R. Googins Director of Public Works City Attorney 2015 -05 -05 Agenda Packet Page 54 .� Emma CITY OF CHULAVISTA File #: 15 -0154, Item #: 5. City of Chula Vista Staff Report RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONSENTING TO THE TERMINATION OF THE SAN DIEGO COUNTY CITIES JOINT POWERS AGREEMENT FOR RISK MANAGEMENT SERVICES AND RELATED INSURANCE COVERAGES CREATING THE SAN DIEGO POOLED INSURANCE AUTHORITY FOR MUNICIPAL ENTITIES (SANDPIPA) EFFECTIVE JULY 11 2016 AND ASSOCIATED AMENDMENTS TO THE JOINT POWERS AGREEMENT, AND AUTHORIZING THE MAYOR TO EXECUTE ANY DOCUMENTS REQUIRED TO CONFIRM AND IMPLEMENT THESE ACTIONS RECOMMENDED ACTION Council adopt the resolution. SUMMARY At its March 26, 2015, meeting, the SANDPIPA Board, representing the twelve member cities, determined that it is in the best interest of SANDPIPA members and in the interest of the public that SANDPIPA should be terminated and its assets distributed to members per the Joint Powers Agreement. This resolution will provide Chula Vista's consent to the termination of SANDPIPA effective July 1, 2016, and will allow SANDPIPA to continue to exist for the purpose of disposing of all claims, distributions of assets, and all other functions necessary to wind up the affairs of the Authority. ENVIRONMENTAL REVIEW Not applicable. BOARD /COMMISSION RECOMMENDATION Not applicable. DISCUSSION The City of Chula Vista has been a member of SANDPIPA since its inception in 1986. SANDPIPA was established to enable its members, all of which are San Diego County cities, to secure insurance coverage for their liabilities and for protection of property at economical rates. Based on payroll, the membership ranges in size with Chula Vista as the largest and Lemon Grove as the smallest. The City's current coverage for tort liability claims consists of three layers of funding. The first layer is the City's self- insured retention, which is currently $500,000. The second layer of coverage is SANDPIPA's pooled layer, which is currently $2.5 million dollars. In this layer all of the SANDPIPA members have pooled their assets based on actuarial information to fund this coverage. Finally, the third layer includes an additional $45 million dollars of commercial insurance that is purchased by the group. SANDPIPA's sole employee, its General Manager, announced that she would be retiring around City of Chula Vista Page 1 of 3 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by LegistarTM Page 55 File #: 15 -0154, Item #: 5. 2016. At the time of her announcement the Board began to strategically explore its options as to the future of SANDPIPA including: whether SANDPIPA should continue in its current administrative structure, should a revised administrative structure be created, should the Board contract with a third party administrator to conduct business on its behalf or had SANDPIPA outgrown its useful life altogether and were there other pooling insurance options available that would better serve its members. After an exhaustive review of the options available the Board determined, by a unanimous vote, that it is in the best interest of SANDPIPAs members and the public they serve to terminate SANDPIPA as a JPA and distribute its assets to its members per the Joint Powers Agreement. In order to make this a smooth transition, and to provide the most financial protection to each of its members, effective July 1, 2015, SANDPIPA will no longer provide liability insurance. Instead, SANDPIPA members will join, as a group, with each member at their individual self- insured retention, the CSAC- Excess Insurance Authority (CSAC EIA). CSAC -EIA is one of the largest governmental insurance pools in the country and with a majority of the cities, counties, and special districts in the state as its members. It is an extremely stable and financially sound organization. During the transition year each member can determine whether to continue with the CSAC -EIA's General Liability 1 program, change to another one of CSAC -EIA's programs, or to seek insurance somewhere else completely. SANDPIPA will initiate a "run -off' period with SANDPIPA as a JPA terminating effective July 1, 2016. After that date, SANDPIPA members would remain together for the purpose of resolving outstanding liabilities, distributing assets and all other functions necessary to close out the affairs of the authority. The SANDPIPA Board will continue to meet to manage the "run- off' process. It is estimated that this process will take from four to six years. This resolution will make the necessary changes to the Joint Powers Agreement to ensure that all members are involved in the decision making process until the "run -off' process is complete. DECISION -MAKER CONFLICT Not Applicable. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This action supports Operational Excellence, by improving the City's fiscal health through this alternative risk financing mechanism that continues to fully protect the City in a more cost effective manner. CURRENT YEAR FISCAL IMPACT There is no fiscal impact in the current year as a result of this change. ONGOING FISCAL IMPACT The first year net savings for fiscal year 2015/16 will be approximately $390,000. In addition, SANDPIPA will payout approximately a total of $3,000,000 to member agencies as part of the distribution of SANDPIPA assets. As part of this process, Chula Vista will receive approximately $434,000. These savings have been incorporated into the City Manager's Proposed Budget for fiscal year 2015/16 and have aided in balancing the budget. For future fiscal years, it is anticipated that the ongoing cost of insurance will continue to be City of Chula Vista Page 2 of 3 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by LegistarTM Page 56 File #: 15 -0154, Item #: 5. significantly less than what it would be were the City to remain in SANDPIPA. It is expected that SANDPIPAs assets will continue to be paid out over four to six years at an anticipated rate of $3,000,000 total for all member agencies per year. Chula Vista's share of a $3,000,000 annual dividend (pay out) would be approximately $434,000 per year for a period of four to six years. Beginning in fiscal year 2016/17 staff is recommends using these funds to help address projected increases in pension costs and /or to create a pension smoothing fund to address increased volatility in pension costs. Further discussion on the use of these funds will be incorporated into the next Five Year Financial Forecast. ATTACHMENTS Attached is a strikeout underlined version of the SANDPIPA JPA agreement as proposed by this resolution. Staff Contact: Teri Enos - Guerrero City of Chula Vista 2015 -05 -05 Agenda Packet Page 3 of 3 Printed on 4/30/2015 powered by LegistarTM Page 57 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL Glen R. Googins City Attorney Dated: h y SAN DIEGO COUNTY CITIES JOINT POWERS AGREEMENT BETWEEN FOR RISK MANAGEMENT AND RELATED INSURANCE COVERAGES CREATING THE SAN DIEGO POOLED INSURANCE PROGRAM AUTHORITY FOR MUNICIPAL (SANDPIPA) 2015 -05 -05 Agenda Packet Page 58 SAN DIEGO COUNTY CITIES JOINT POWERS AGREEMENT FOR RISK MANAGEMENT AND RELATED INSURANCE COVERAGES CREATING THE SAN DIEGO POOLED INSURANCE PROGRAM AUTHORITY FOR MUNICIPAL ENTITIES (SANDPIPA) WHEREAS, certain signatory members of the San Diego County Cities Joint Powers Agreement for Risk Management and Related Insurance Coverages desire to create a separate and independent joint powers authority for the purpose of establishing and administering an insurance program involving risk sharing; and WHEREAS, participation by eligible municipal entities shall be wholly voluntary; and WHEREAS, Government Code Section 6500 et seq. provides that two or more public agencies may, by agreement, jointly exercise any power common to the contracting parties; and WHEREAS, Government Code Section 990.4 provides that a local public entity may self - insure, purchase insurance through an authorized carrier, or purchase insurance through a surplus line broker, or any combination of these; and WHEREAS, Government Code section 990.8 provides that two or more local entities may, by a joint powers agreement, provide insurance for any purpose by any one or more of the methods specified in Government Code Section 990.4; and WHEREAS, each of the parties to this agreement desires to join together with the other parties for the purpose of pooling certain self - insured claims and losses, as provided in Government Code Section 990.8, and jointly purchasing excess insurance and administrative services in connection with an insurance program for said parties; NOW, THEREFORE, for and in consideration of the mutual advantages to be derived therefrom and in consideration of the execution of this agreement by other public entities, it is hereby agreed that San Diego Pooled Insurance Program Authority For Municipal Entities be created as follows: SAN DIEGO POOLED INSURANCE PROGRAM AUTHORITY FOR MUNICIPAL ENTITIES This agreement is made and entered into the County of San Diego, State of California, by and among the cities organized and existing under the laws of the State of California, hereinafter referred to collectively as "cities" and individually as "city," which are parties signatory to this agreement. Said cities are sometimes referred to herein as "parties." SANDPIPA Joint Powers Agreement April 1, 1986 (with proposed 2015 amendments to Article 25) 2015 -05 -05 Agenda Packet Page 59 A R TTCT F 1 DEFINITIONS The following definitions shall apply to the provisions of this agreement: A. "Assessment" shall mean the amount due and payable by the city in excess of the premium for valid claims. B. "Auditor" shall mean that person appointed by the board who is required to draw warranties on behalf of the authority and provide for an annual audit, in accordance with the law and the bylaws. C. "Authority" or "SANDPIPA" shall mean the San Diego Pooled Insurance Program Authority for Municipal Entities created by this agreement. D. "Board of Directors" or "Board" shall mean governing body of the Authority. E. "City" or "cities" shall mean general law or charter cities, established under the laws of the State of California, which are signatory members of the authority; provided, however, that this definition shall not be construed to prevent the Authority from extending insurance coverage to any subsidiary, conditions approved by the board. F. "Claim" shall mean demands made against the cities which are within the Authority's insurance program. G. "Clerk" shall mean the person of the Authority who is so appointed by the board under the bylaws. H. "Earned premium" shall mean earned premium as defined in the California Insurance Code. I. "Excess Insurance" shall mean that insurance which may be purchased on behalf of the Authority to protect the funds of the cities against catastrophic losses or an unusual frequency of losses during a single year. J. "Executive Committee" shall mean the Executive Committee of the board of Directors of the Authority. K. "Fiscal Year" shall mean that period of twelve months which is established as the fiscal year of the Authority. L. "Incurred Loss" shall mean total expenses for payment of a claim, including reserves therefore. M. "Insurance" shall mean self - insurance through risk- pooling funded program, and /or any commercial insurance contract, and the context requires. SANDPIPA Joint Powers Agreement 2 April 1, 1986 (with proposed 2015 amendments to Article 25) 2015 -05 -05 Agenda Packet Page 60 N. "Insurance Program" shall mean insurance and risk management programs offered by or through the Authority. O. "Insurance Year" shall mean a period of time, usually twelve (12) months, determined by the Executive Committee into which each element of the insurance program is segregated for ease in determining premiums, incurred losses, and assessments. P. "Memorandum of Insurance" shall mean the basic liability self - insurance program funded by risk- sharing, issued through the Authority in policy form. Q. "Premium" shall mean the amount determined by the Board annually as necessary to fund the insurance program of the Authority. R. "Pro forma statement" shall mean a projection of estimated losses, expenses, premiums, assessments, and other revenues for a reasonable period, for any insurance offered by the Authority. S. "Program Underwriter" shall mean an individual or legal entity, either under contract or employed by SANDPIPA, to provide underwriting services. T. "Reserves" shall mean funds not yet committed to the payment of a valid claim but held for the payment of the claims. U. "Risk Management" shall mean the process of identifying, evaluating, reducing, transferring, sharing, and eliminating risk. Risk management includes various elements of insurance, law, administration, technology, accounting, and general business to effectively manage hazards and losses to which member cities may be exposed. V. "Risk Manager" shall mean the manager of day -to -day affairs of the authority, appointed by the board. W. "Risk pooling or sharing" shall mean any common fund: (1) which is composed of cash, investments permitted by Government Code Section 53601 et seq., or other assets; (2) to which two or more members of the Authority have agreed to contribute in accordance with the terms of the contract or memorandum of insurance of insurance in which participation is voluntary; (3) from which claims and risk management costs of any contributor to that common fund shall be paid; and (4) which operates in accordance with this joint powers agreement. X. "Self- insurance" shall mean providing for claims, losses, and risk management by risk - pooling and the maintenance of reserve funds by the city. Y. "Self- insured retention" or "retained limit" shall mean the amount below which a city is liable, at its own expense, under the Memorandum of Insurance. SANDPIPA Joint Powers Agreement 3 April 1, 1986 (with proposed 2015 amendments to Article 25) 2015 -05 -05 Agenda Packet Page 61 Z. "Underwriting Committee" shall mean standing committee to be established by the Board, comprised of a chairman (elected from the Board) and two or more members -at- large from participating agencies. ARTICLE 2 PTTRP()',�F.l,� This agreement is entered into by cities pursuant to the provisions of the Government Code Sections 990.4, 990.8, and 6500 et seq. in order to provide comprehensive and economical public liability coverage and coverage for other risks to which the Board of Directors may agree. Additional purposes are to reduce the amount of frequency of losses and to decrease the cost incurred by cities in the handling and litigation of claims. These purposes shall be accomplished through the exercise of the power of such cities jointly in the creation of a separate entity, the San Diego Pooled Insurance Program Authority For Municipal Entities (the "Authority "), to administer an insurance program pursuant to which the cities will pool certain losses, claims, and funds, jointly purchase excess insurance (if available) and administrative and other services, including claims adjusting, data processing, risk management consulting, loss prevention, legal, and related services. It is also the purpose of this agreement to provide, to the extent permitted by law, for the inclusion, at a subsequent date, of such additional cities as may desire to become parties to this agreement and members of the Authority, subject to approval by the Board of Directors. ARTICLE 3 PARTIES TO THE AGREEMENT Each party to this agreement certifies that it intends to and does contract with all other parties who are signatories of this agreement and, in addition, which such other parties as may later be added as parties to and signatories of this agreement pursuant to Article 21. Each party to this agreement also certifies that the deletion of any party from this agreement, pursuant to articles 22 and 23, shall not affect this agreement nor such party's intent to contract, as described above, with the other parties to the agreement then remaining. ARTICLE 4 TERMS OF THE AGREEMENT This agreement shall become effective upon the first day it has been executed by two cities. ARTICLE 5 CREATION OF AUTHORITY Pursuant to section 6500 et seq. of the Government Code, there is hereby created a public entity, separate and apart from the parties hereto, to be known as the San Diego Pooled Insurance Program Authority For Municipal Entities. Pursuant to Government Code Section 6508.1, the debts, liabilities, and obligations of the Authority shall not constitute debts, liabilities, or obligations of any party to this agreement or to any city. SANDPIPA Joint Powers Agreement 4 April 1, 1986 (with proposed 2015 amendments to Article 25) 2015 -05 -05 Agenda Packet Page 62 ARTICLE 6 POWERS OF AUTHORITY A. The Authority shall have the powers common to cities and is hereby authorized to do all acts necessary for the exercise of said common powers, including, but not limited to, any or all of the following: 1. To make and enter into contracts, including contracts of insurance and self - insurance for it's members providing the risk- pooling or sharing, whether or not subject to regulation under the insurance code, to the extent and in the manner permitted under Government Code Sections 990.4, 990.8, and 6508, or any other provisions of law; 2. To incur debts, liabilities, or obligations; 3. To acquire, hold, or dispose of property, contributions and donations of property, funds, services, or other forms of assistance from persons, firms, corporations, and governmental entities; 4. To sue and be sued in its own name; and 5. To exercise all powers necessary and proper to carry out the terms and provisions of this agreement, or otherwise authorized by law. B. Said powers shall be exercised pursuant to the terms hereof and in the manner provided by law. ARTICLE 7 BOARD OF DIRECTORS A. The Authority shall be governed by the board of Directors which is hereby established and which shall be composed of one representative from each city, who shall be selected by the city manager of that city. Each city in addition to appointing its members of the Board, shall appoint at least one alternate. Each director and each alternate shall have a staff employee of that city. The alternate appointed by a city shall have the authority to attend, participate in, and vote at any meeting of the Board when the regular member for whom he or she is an alternate is absent from said meeting. B. Each director or alternate of the board shall serve until a successor is appointed. Each director or alternate shall serve at the pleasure of the city by which he or she has been appointed. C. Each director or alternate shall have one vote. SANDPIPA Joint Powers Agreement April 1, 1986 (with proposed 2015 amendments to Article 25) 5 2015 -05 -05 Agenda Packet Page 63 A R TTCT .F R POWERS OF THE BOARD OF DIRECTORS The Board of Directors of the Authority shall have the following powers and functions: A. The Board shall elect from its members, pursuant to Article 10 of this agreement, an Executive Committee. B. The Board may review all acts of the Executive Committee and shall have the power to modify and /or override any decision or action of the Executive Committee upon a majority vote of the entire Board of Directors. C. The Board shall review, modify, if necessary, and approve the annual operating budget of the Authority prepared by the Executive Committee, pursuant to Article I I (d). D. The Board shall receive and review periodic accounting of all funds under Articles 16 and 17 of this agreement. E. The Board shall have the power to conduct, on behalf the Authority, all business of the Authority, including that assigned to the Executive Committee which the Authority may conduct under the provisions hereof and pursuant to law. F. The Board shall have such other powers and functions as are provided for in this agreement or in the bylaws. ARTICLE 9 MEETINGS OF THE BOARD OF DIRECTORS A. Meetings. The Board shall provide for it's regular adjourned regular, and special meetings upon call of the president of the Board; provided, however, that it shall hold at least one regular meeting annually, as set forth in the bylaws. B. Minutes. The clerk of the Authority shall cause minutes of regular, adjourned regular, and special meetings to be kept and shall, as soon as possible after each meeting, cause a copy of the minutes to be forwarded to each member of the Board and to each city. C. Quorum.. A majority of the members of the Board shall constitute a quorum for the transaction of business, except that less than a quorum may adjourn from time to time. A vote of the majority of those members present at a meeting shall be sufficient to constitute action by the Board, except as otherwise specifically set forth in this agreement or in the bylaws. SANDPIPA Joint Powers Agreement April 1, 1986 (with proposed 2015 amendments to Article 25) M 2015 -05 -05 Agenda Packet Page 64 D. Compliance with the Brown Act. All meetings of the Board, including, without limitation, regular, adjourned regular, and special meetings, shall be called, noticed, held, and conducted in accordance with the provisions for the Ralph M. Brown Act, Government Code section 54950 et seq. ARTTCI .F. 10 EXECUTIVE COMMITTEE A. There shall be an Executive Committee of the Board of Directors which shall consist of at least three members, as provided in the bylaws. The members of the Executive Committee shall include the president of the Board of Directors; the remainder of the members shall be elected by the Board of Directors from its members, as provided in the bylaws. B. Vacancies on the Executive Committee shall be filled as provided in the bylaws. A R TTCT .F. 1 1 POWERS OF THE EXECUTIVE COMMITTEE The Executive Committee may be delegated the following powers: A. Determine details of and select the insurance program of the Authority. B. Determine and select all insurance, including excess insurance, necessary to carry out the programs of the Authority. C. Have Authority to contract for or develop various services for the Authority, including, but not limited to, claims adjusting, loss control, legal defense, and risk management consulting. D. Cause to be prepared the operating budget of the Authority for each fiscal year, subject to review, modification, and approval by the Board, as provided for in Article 8(c). E. Receive and act upon reports of the risk manager and committees of the Authority, as provided in the bylaws. F. The authority to hire persons as the Executive Committee deems necessary for the administration of the Authority. G. Exercise general supervisory and policy control over the risk manager. H. Direct investment of funds collected by the Authority. I. Such other powers and functions as are provided for pursuant to this agreement. SANDPIPA Joint Powers Agreement April 1, 1986 (with proposed 2015 amendments to Article 25) 7 2015 -05 -05 Agenda Packet Page 65 A R TTCT .F 1 MEETINGS OF THE EXECUTIVE COMMITTEE The meetings of the Executive Committee shall be held and conducted as provided in the bylaws. The Committee shall make periodic reports to the Board of Directors, advising the Board of its decisions and activities. ARTICLE 13 OFFICERS OF THE AUTHORITY A. President and Vice President. The Board shall elect a president and vice president of the Authority at its first meeting in January of even - numbered years, each to hold office until a successor is elected. In the event the president or vice president so elected ceases to be a member of the Board, the resulting vacancy in the office of president or vice president shall be filled at the next regular meeting of the Board held after such vacancy occurs. The Executive Committee may appoint an interim president or vice president pending action by the Board of Directors. In the absence or inability of the president to act, the vice president shall act as president. The president, or in his or her absence the vice president, shall preside at and conduct all meetings of the Board and shall chair the Executive Committee. B. Treasurer. The treasurer shall be appointed by the Board. The duties of the treasurer are set forth in Articles 16 and 17 of this agreement. C. Attorney. The Board shall appoint an attorney for the Authority. D. Other Officers. The Board shall have the power to appoint, or to delegate to the Executive Committee the power to appoint, the auditor and clerk and such other officers as may be necessary to carry out the purpose of this agreement. ARTICLE 14 INSURANCE COVERAGE A. The Authority shall maintain levels of insurance coverage for cities determined by the Board of Directors to be reasonably adequate. B. The insurance coverages provided by the Authority may include protection for motor vehicle, personal injury, property damage, errors and omissions, contractual, or comprehensive general liability, or such other areas of coverage as the Executive Committee may recommend to the Board. C. Upon Request, a city tendering a claim under any risk sharing insurance program of the Authority shall be entitled to select a legal defense firm from among those acceptable to under contract with the Authority. SANDPIPA Joint Powers Agreement April 1, 1986 (with proposed 2015 amendments to Article 25) E' 2015 -05 -05 Agenda Packet Page 66 D. The Board may arrange for a group policy to be issued for cities interested in obtaining additional coverage at an additional cost to those cities. E. The Board may arrange for the purchase of excess insurance. The Board may discontinue purchase of excess insurance if no longer available or needed to protect the Authority's funds. ARTICLE 15 IMPLEMENTATION OF THE INSURANCE PROGRAM A. Program Formation; Appointments. As soon as practicable after the effective date of this agreement, the Board of Directors shall determine the insurance coverages to be provided as permitted in Article 14, the amount of premiums therefore, established precise cost allocation plans and formulas, provide for the handling of claims, establish pro forma statements of each risk- pooling or other type of insurance program, and specify the amounts and types of excess insurance, if any, to be procured. In addition, the Board shall appoint an Underwriting Committee, Claims Review Committee, and Program Underwriter as soon as practicable. Vacancies on such committees shall be filled by action of the Executive Committee on an interim basis until such time as the Board acts to fill such vacancies. B. Premiums and Assessments. The premiums and assessments for each city for any risk - pooling program shall be recommended by the Underwriting Committee and approved by the Board. C. Annual Adjustments. The cost allocation plans and formulas adopted by the Board shall provide for an adjustment in each cities premiums following the first year of operation of each program, and annually thereafter, to produce a premium for each year, for each city, for each risk- pooling program, which shall consider the following five items: 1. The city's incurred losses for each risk pooling program; and 2. The city's share of such losses and other expended for each risk pooling program as a proportion of all cities such losses; and 3. The city's contribution to reserves, including reserves for incurred- but -not reported losses, for each risk- pooling program; and 4. The city's share of costs to purchase excess insurance, if any; and 5. The city's share of costs to purchase any additional coverage, as provided in article 14(c). D. Notice of Premiums. Premium adjustments shall be made annually, and notices of premiums shall be distributed at least sixty (60) days prior to the close of each insurance SANDPIPA Joint Powers Agreement 9 April 1, 1986 (with proposed 2015 amendments to Article 25) 2015 -05 -05 Agenda Packet Page 67 year. All premiums shall be due at payable within thirty (30) days after the effective date of coverage, except as provided in Article 20. E. Payment of premiums or Assessments Over Time. Inasmuch as some cities may experience an unusual frequency of losses during a single insurance year which would increase their subsequent premium substantially above the premium for that risk sharing program for the insurance year, or result in an assessment, and cause budgetary problems, the Board may allow for payment of a portion of such subsequent premium or assessment to be made over a period of time not to exceed five years, with reasonable interest. F. Underwriting Practices. Underwriting practices shall be generally consistent with industry standards in order to stabilize premiums and permit purchases of excess coverage, and other coverages supplemental to the Memorandum of Insurance. 1. Underwriting Committee. All matters dealing with the scope of coverage and limits of liability provided under the Memorandum of Insurance shall be the primary responsibility of the standing committee established by the Board called the "Underwriting Committee." The Committee shall also be responsible for recommending premiums and assessments to the Board. The Underwriting Committee shall receive advice from the Program Underwriter Decisions of the Underwriting Committee will be reviewed and acted upon by the Board. A majority of vote of the entire Board shall be required to overrule a decision if the Underwriting Committee in all matters. 2. Program Underwriter. The program Underwriter selected by the board shall be independent of any broker or insurer with contracts with the Authority and shall not be a staff employee of any party. The Program Underwriter shall advise the Authority concerning its underwriting decisions. 3. Limits. The limits of liability offered under the Memorandum of Insurance shall be established by the underwriting committee, using the following general guidelines: a. Per - occurrence limits shall approximate two times the annual premiums collected under the program. The limits of liability shall be established annually (at each anniversary) and shall not be amended with mid -term addition or deletion of insurance. b. Annual aggregate limits shall approximate four times the annual premiums collected under the Memorandum of Insurance. The purpose of this limitation is to assure that potential assessments are limited to a maximum relative to the annual aggregate exposure. The program Underwriter shall recommend limits of liability to the Underwriting Committee. The Underwriting Committee shall approve, disapprove, or modify such recommendation with just cause. SANDPIPA Joint Powers Agreement April 1, 1986 (with proposed 2015 amendments to Article 25) 10 2015 -05 -05 Agenda Packet Page 68 4. Assessments. In the event assessments are necessary, the Program Underwriter shall make recommendations to the Underwriting Committee. The committee, with good cause, may amend, reject, or accept the proposed assessment, and make a recommendation to the board. In the event a recommended assessment is reduced or rejected, and alternate funding mechanism shall be adopted by the Board as necessary to assure solvency of the program. The assessment amount shall be allocated based on the following criteria: 1. The extent by which any city's losses have exceeded its contribution to the insurance program. 2. In any insurance year, the ratio of a city's claims pending to all cities' claims pending. 3. In any insurance year, the ratio of a city's premiums and other contributions to the total therefore of all cities. G. Assessment Payment. Assessments are due and payable within 30 days of date of mailing of notice by the Board. H. Exhaustion of Annual A,gyregate Limits. In the event annual aggregate limits ate reached for any insurance year, claims payments shall be made proportionally, based on the ratio total claims under the program bear to the annual aggregate limits under the Memorandum of Insurance. ARTTCT F 1 h ACCOUNTS AND RECORDS A. Annual Budget. The Authority shall annually adopt an operating budget, pursuant to Article 8(c) of this agreement. B. Funds and Accounts. The treasurer of the Authority shall establish and maintain such funds and accounts as required by the Executive Committee and as required by good accounting practice. Books and records of the Authority in the hands of the treasurer shall be open to any inspection at all reasonable times by authorized representatives of cities and as otherwise required by law. C. Treasurer's Report. The treasurer, within 120 days after the close of each fiscal year, shall give a complete written report of all financial activities for such fiscal year to the Board and to each city. D. Annual Audit. The auditor shall provide for a certified, annual audit of the accounts and records of the Authority, which audit shall be made by a certified public accountant and SANDPIPA Joint Powers Agreement 11 April 1, 1986 (with proposed 2015 amendments to Article 25) 2015 -05 -05 Agenda Packet Page 69 shall conform to generally acceptable auditing standards. A report thereof shall be filed as a public record with each of the cities. Such report shall be filed within six months of the end of the year under examination. ARTICLE 17 RESPONSIBILITY FOR MONIES A. The treasurer of the Authority shall have the custody of and disburse the Authority's funds. He or she shall have the authority to delegate the signatory function of treasurer to such persons as are authorized by the Board. B. A bond in the amount determined adequate by the Board shall be required of all officers and personnel authorized to disburse funds of the Authority, such as bonds to be paid for by the Authority. C. The treasurer of the Authority shall assume the duties described in Government Code Section 6505.5, including: 1. Receive and acknowledge receipt for all money of the Authority and place it in the treasury of the Authority. 2. Be responsible, upon his and her official bond, for the safekeeping and disbursement of all of the Authority money so held by him or her; 3. Pay, when due, out of money of Authority so held by him or her, all sums payable on outstanding bonds and coupons of the Authority; 4. Pay any other sums due from Authority money only upon warrants approved by the presidents of the Board or his or her designee and the risk manager. The warrants shall be drawn by the auditor, who shall be selected by the Board in accordance with the bylaws and laws. 5. Verify and report monthly to the Authority and to cities the amount of money held for the Authority, the amount of receipts since the last report, and the amount paid out since the last report. D. The treasurer shall deposit the funds of the Authority in accordance with the investment policy required by law, and approved by the Board, in those instituting and investments permitted pursuant to Government Code section 53601 et seq. ARTICLE 18 RESPONSIBILITIES OF THE AUTHORITY The Authority shall perform the following functions in discharging its responsibilities under this agreement: SANDPIPA Joint Powers Agreement April 1, 1986 (with proposed 2015 amendments to Article 25) 12 2015 -05 -05 Agenda Packet Page 70 A. Provide an insurance program, as necessary, including, but not limited to, a self - insurance risk sharing fund, and commercial insurance (which may include excess coverage and umbrella insurance), by negotiation, bid, or purchases. B. Assist cities in obtaining insurance coverage for risks not included within the insurance program of the Authority, as permitted in Article 14(C). C. Assist each city with the implementation of risk management programs related to risks covered by the Authority's insurance program within the city. D. Provide loss prevention and safety consulting services to cities, as required. E. Provide claims adjusting and subrogation services for claims covered by the Authority's insurance program, as required. F. Provide loss analysis and control by the use of statistical analysis, data processing, and record and file- keeping services, in order to identify high exposure operations and to evaluate proper levels of self- insured retention (as to risk- sharing programs) and deductibles (as to commercial insurance). G. Conduct risk management audits to review the participation of each city in the insurance program. H. The Authority shall have such other responsibilities as deemed necessary by the Board of Directors in accordance with this agreement. ARTTCI .F. 1 A RESPONSIBILITIES OF CITIES Cities shall have the following responsibilities: A. Each city shall appoint a representative and at least one alternate to the Board of Directors, pursuant to Article 7 of this agreement. B. Each city shall maintain an active safety program and shall consider all recommendations of the Authority concerning unsafe practices. C. Each city shall maintain its own set of records in all categories of risk covered by the insurance program of the Authority to insure accuracy of the Authority's loss reporting system until no longer deemed necessary by the Board. D. Each city shall pay its premium, and any assessment, within thirty (30) days of the invoice date. After withdrawal or termination, each city shall pay promptly to the Authority its share of any additional assessment when and if required of it by the Executive Committee under Article 24 or 25 of this agreement. SANDPIPA Joint Powers Agreement April 1, 1986 (with proposed 2015 amendments to Article 25) 13 2015 -05 -05 Agenda Packet Page 71 E. Each city shall provide the Authority with such other information or assistance as may be necessary for the Authority to carry out the insurance program under this agreement. F. Each city shall, in any and all ways, cooperate with assist and assist the Authority, and any insurer of the Authority, in all matters relating to this agreement and covered claims and will comply with all bylaws, rules, and regulations adopted or approved by the Board of Directors. ARTICLE 20 INTERIM PERIOD AND EFFECTIVE DATE OF PROGRAM A. Interim Period. Concurrently with approval of this agreement, each city shall approve and accept the proposed premium, fee quote, and Memorandum of Insurance from Driver Insurance. Such approval and acceptance shall be conditioned upon the formation of the Authority and the Authority's approval of the proposed premium fee and Memorandum of Insurance. Each city shall have thirty (30) days from the date of receiving such items in writing to consent by resolution to enter the Authority and accept the provisions of the Memorandum of Insurance. B. Effective Date. The proposed Memorandum of Insurance shall state that it shall be effective as of April 1, 1986. ARTICLE 21 NEW MEMBERS The Authority shall allow entry into its insurance program by new members only upon approval by the Board, or by the Executive Committee if specifically delegated such authority by resolution of the Board, which resolution may impose such conditions or limitations upon such authority of the Executive Committee as the Board deems appropriate. Cities entering under this article shall be required to pay their share of the organizational expenses, as determined by the Board, including expenses necessary to analyze their loss data and determine their premiums. ARTICLE 22 WITHDRAWAL After an initial one -year, noncancellable commitment to the Memorandum of Insurance, a city may withdraw, provided it has given the Authority a six -month written notice of its intent to withdraw from this agreement and the Memorandum of Insurance. ARTICLE 23 CANCELLATION Notwithstanding the provisions of Article 22, the Authority shall have the right to cancel, for good cause, any city's participation in the Authority and Memorandum of Insurance upon a two - thirds vote of the entire Board of Directors, provided that a reasonable time shall be afforded, in the discretion of the Board of Directors, to place coverage elsewhere. SANDPIPA Joint Powers Agreement 14 April 1, 1986 (with proposed 2015 amendments to Article 25) 2015 -05 -05 Agenda Packet Page 72 ARTICLE 24 EFFECT OF WITHDRAWAL A. The withdrawal of any city from this agreement shall not terminate the same, and a city, by withdrawing, shall not be entitled to payment or return of any earned premium, consideration, or property paid or donated by the city to the Authority, or to any distribution of assets, except as provided in Article 25(c). B. The withdrawal or cancellation of any city after the effective date of the Memorandum of Insurance or other elements of the insurance program shall not terminate its responsibility to contribute its share of premium or funds to the insurance program of the Authority, until all claims or other unpaid liabilities covering the period the city was a participant have been finally resolved and a determination of the final amount of payments due by the city or credits to the city for such period has been made by the Executive Committee. In connection with this determination, the Executive Committee may exercise similar powers to those provided for in Article 25(b) of this agreement. ARTICLE 25 TERMINATION AND DISTRIBUTION A. This agreement may be terminated any time during the first year by the written consent of all cities and thereafter by the written consent of three - fourths of the cities; provided, however, that this agreement and the Authority shall continue to exist for the purpose of disposing of all claims, distribution of dividends, distribution of assets, and all other functions necessary to wind up the affairs of the authority. Withdrawn or cancelled members are entitled to participate in dividend distributions after accounting for their Board determined share of administrative expenses. B. The r'01 Board of Directors is vested with all powers of the Authority for the purpose of winding up and dissolving the business affairs of the Authority. These powers shall include the power to require cities, including those which were signatory hereto at the time a claim arose or was incurred, to pay their share of any additional assessment, in accordance with loss allocation formulas for final disposition of all claims and losses covered by this agreement. A city's share of such assessment shall be determined on the same basis as that provided for assessments in Article 15(c) and (d) of this agreement. C. Upon termination of this agreement, all assets of the Authority shall be distributed only among the parties that have been signatories hereto, including any of the cities which previously withdrew pursuant to Article 22 or were canceled pursuant to Article 23 of this agreement, in accordance with and proportionate to their cash contributions (including premium payments and property at market value when received) made during the term of this agreement. The Executive Committee shall determine such distribution within six months after disposal of the last pending claim or loss covered by this agreement. SANDPIPA Joint Powers Agreement April 1, 1986 (with proposed 2015 amendments to Article 25) 15 2015 -05 -05 Agenda Packet Page 73 D. In the absence of an Executive Committee, the Risk Manager shall exercise all powers and authority under this Article. The decision of the Executive Committee or Risk Manager under this article shall be final. ARTICLE 26 PROVISION FOR BYLAWS AND PLAN DOCUMENT As soon as practicable after the first meeting of the Board of Directors, the Board shall cause to be developed and shall adopt Authority bylaws and a plan document to govern the day -to -day operations of the Authority. Each city shall receive a copy of any bylaws, plan document, or other document developed under this article. ARTICLE 27 NOTTC1:F.I,� Notices to cities hereunder shall be sufficient if delivered to the clerk of the respective city. ARTICLE 28 ENFORCEMENT The Authority shall have the right to enforce this agreement. If any suit or other proceeding or arbitration is brought by the Authority, or any member, to enforce this agreement, the prevailing party shall be entitled to recover costs and expenses, including reasonable attorneys' fees. No court proceedings shall be initiated by the Authority, affected member, or withdrawn member agency, other than for the collection or return of assessments or premiums. Other disputes shall be resolved as provided in the bylaws. ARTICLE 29 TNVAT ,TT)TTY Should any portion, term, condition, or provision of this agreement be determined by a court of competent jurisdiction to be illegal and in conflict with any law of the State of California, or be otherwise rendered unenforceable or ineffectual, the validity of the remaining portion, terms, conditions, and provisions shall not be affected thereby. ARTICLE 30 TORT LIABILITY Section 895.2 of the Government Code imposes certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined in Section 895 of said Code. Therefore, the parties hereto, as between themselves pursuant to the authorization contained in Sections 895.4 and 895.6 of the Government Code, each assumes the full liability imposed upon it or any of its officers, agents or employees by law for injury caused by a negligent or wrongful act or omission occurring in the performance of the Agreement, to the same extent that such liability would be imposed in the absence of Section 895.2 of said Code. To achieve this purpose each party indemnifies and hold harmless the other party for any loss, SANDPIPA Joint Powers Agreement 16 April 1, 1986 (with proposed 2015 amendments to Article 25) 2015 -05 -05 Agenda Packet Page 74 cost or expense that may be imposed upon such other party solely by virtue of Section 895.2 of the Government Code. Upon exhaustion of aggregate policy limits, as described in Article 15, under the Memorandum of Insurance (and excess insurance, if obtained) for any insurance year, no city or party shall be assessed or held in any way responsible for the claims or losses of any other city which are excess of such limits; and any expenses that may reasonably be incurred as a result of such excess claims. Accordingly, this agreement does not affect city claims processing or payment after exhaustion of aggregate policy limits; however, such claims management procedures may be considered by the Authority in evaluating the conformance of city risk management practices with Authority standards. ARTICLE 31 CLAIMS, LITIGATION, OR JUDGMENTS AGAINST THE AUTHORITY A. Defense of Claims. As to any claim or action against the Authority which is based on or arises out of an occurrence involving an officer or employee of the Authority during the course and in the scope of such duties, who is also an officer or employee of a city, such claim or action against the Authority will be defended by the Authority to the extent required by law. Such claims or actions shall not be considered claims or actions against such city solely as a result of employment by the Authority. B. Claims and Judgment Against the Authority. Claims and judgments against the Authority shall be paid from, or charged to, the appropriate coverages or self - insured funds the Authority has established against such claims, judgments or losses. Such amounts shall be paid from the Authority's own coverage or self - insured funds. C. Arbitration. Any differences, claims or matters in dispute arising between or among members shall, if such differences arise out of this agreement or the bylaws, be submitted by such members to arbitration by the American Arbitration Association or its successor under the pertinent provisions of the laws of the State of California relating to arbitration, except as provided below. The decision of the arbitrator(s) may be entered as a judgment in any court of the State of California or elsewhere. Costs of arbitration, including reasonable attorneys' fees, shall be recoverable in arbitration. D. Authority Representation Conflicts. Any differences, claims or matters in dispute arising between or among members shall, if such differences do not arise out of this agreement or the bylaws, be handled as follows: 1. After being notified in writing that one member agency has filed a formal claim against another in accordance with provisions of the Government Code, the Authority can no longer act on behalf of either member insofar as the case giving rise to the claim is concerned if the claim involves a risk covered by the Memorandum of Insurance, or other risk- sharing insurance policy of the Authority in which each of the involved members is a participating member. SANDPIPA Joint Powers Agreement April 1, 1986 (with proposed 2015 amendments to Article 25) 17 2015 -05 -05 Agenda Packet Page 75 2. Conversely, the Authority may continue to act on behalf of a participating member, even after receipt of written notice of a formal claim filed by one member agency against another, provided the claim only involves a risk- sharing insurance policy of the Authority in which only one of the involved member agencies is participating. In any case falling within the boundaries of (1) or (2) above, the Authority may, in its discretion, act on behalf of one or all involved members, provided that the Authority first obtains the written consent of each involved member; provided that the failure of the Authority to act on behalf of any member under this section shall not affect the Authority's obligation to provide coverage, including coverage of legal defense costs under the Memorandum of Insurance or other risk - sharing insurance of the Authority. A R TTCT .F. I? PROHIBITION AGAINST ASSIGNMENT No city may assign any right, claim, or interest it may have under this agreement, and no creditor, assignee or third -party beneficiary of any city shall have any right, claim, or title to any part, interest, fund, premium, or asset of the Authority. ARTTCT .F. 11 AGREEMENT COMPLETE The foregoing constitutes the full and complete agreement of the parties. There are no oral understandings or agreements not set forth in writing herein. IN WITNESS WHEREOF, the parties hereto have first executed this agreement by authorized officials thereof on the date indicated below: City of Chula Vista By: Authorized by Resolution No. City of Del Mar By: Authorized by Resolution No. City of Escondido By: Authorized by Resolution No. SANDPIPA Joint Powers Agreement April 1, 1986 (with proposed 2015 amendments to Article 25) City of Coronado By: Authorized by Resolution No. City of Encinitas By: Authorized by Resolution No. City of Imperial Beach By: Authorized by Resolution No. 18 2015 -05 -05 Agenda Packet Page 76 City of Lemon Grove City of National City By: By: Authorized by Resolution No. Authorized by Resolution No. City of Oceanside City of Santee By: By: Authorized by Resolution No. Authorized by Resolution No. City of Solana Beach City of Vista By: By: Authorized by Resolution No. Authorized by Resolution No. SANDPIPA Joint Powers Agreement 19 April 1, 1986 (with proposed 2015 amendments to Article 25) 2015 -05 -05 Agenda Packet Page 77 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CONSENTING TO THE TERMINATION OF THE SAN DIEGO COUNTY CITIES JOINT POWERS AGREEMENT FOR RISK MANAGEMENT SERVICES AND RELATED INSURANCE COVERAGES CREATING THE SAN DIEGO POOLED INSURANCE AUTHORITY FOR MUNICIPAL ENTITIES (SANDPIPA) EFFECTIVE JULY 11 2016 AND ASSOCIATED AMENDMENTS TO THE JOINT POWERS AGREEEMENT AND AUTHORIZING THE MAYOR TO EXECUTE ANY DOCUMENTS REQUIRED TO CONFIRM AND IMPLEMENT THESE ACTIONS WHEREAS, the City is a member of a joint powers authority, the "SAN DIEGO COUNTIY CITIES JOINT POWERS AGREEMENT FOR RISKMANAGEMENT SERVICES AND RELATED INSURANCE COVERAGES CREATING THE SAN DIEGO POOLED INSURANCE AUTHORITY FOR MUNICIPAL ENTITIES (SANDPIPA); and WHEREAS, the SANDPIPA Board, representing the member agencies, has determined that it is in the best interest of SANDPIPA members and in the public interests that SANDPIPA should be terminated, and its assets distributed to members and in the public interests that SANDPIPA should be terminated, and its assets distributed to members per the Join Powers Agreement; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it consents to the termination of the San Diego County Cities Joint Powers Authority (SANDPIPA) for Risk Management Services and Related Insurance Coverages per Article 25 of the Joint Powers Agreement, effective July 1, 2016, with SANDPIPA to continue to exist for the purpose of disposing of all claims, distribution of assets, and all other functions necessary to wind up the affairs of the Authority. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it hereby agrees to an amendment of the Joint Powers Agreement, substituting "the Board of Directors" for "The Executive Committee" in Article 25, paragraph B, of the Joint Powers Agreement, so that powers of the Authority for purposes of winding up and dissolving the business affairs of the Authority will be vested with the Board of Directors. BE IT FURTHER RESOLVED, by the City Council of the City of Chula Vista, that it agrees to an amendment of the Joint Powers Agreement in Article 25, paragraph A, adding "distribution of dividends," after "disposing of all claims," so that the Board of Directors is expressly authorized to continue to distribute dividends, in accordance with the "plan document" referenced in Article 26, during the period of winding up and dissolving the business affairs of the Authority. The following language is added to Section 25, paragraph A: "Withdrawn or 2015 -05 -05 Agenda Packet Page 78 cancelled members are entitled to participate in dividend distribution after accounting for their Board determined share of administrative expenses." BE IT FURTHER RESOLVED, by the City Council of the City of Chula Vista, that it authorizes the Mayor to execute any documents required to confirm and implement said termination and amendments. Presented by Courtney M. Barrett Director of Human Resources Approved as to form by Glen R. Googins City Attorney 2015 -05 -05 Agenda Packet Page 79 .� Emma CITY OF CHULAVISTA File #: 15 -0159, Item #: 6. City of Chula Vista Staff Report RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACKNOWLEDGING GRANT REQUIREMENTS OF SANDAG TO IMPLEMENT A MULTI -YEAR COASTAL CACTUS WREN HABITAT RESTORATION PROGRAM WITHIN THE CHULA VISTA OTAY RANCH PRESERVE MANAGEMENT AREA, AUTHORIZING ACCEPTANCE OF THE GRANT FUNDING SHOULD IT BE AWARDED FROM SANDAG, AND AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT AGREEMENT WITH SANDAG RECOMMENDED ACTION Council adopt the resolution. SUMMARY On October 1, 2014, the San Diego Association of Governments (SANDAG) issued a Call for Projects (CFP) for grant funding under the TransNet Environmental Mitigation Program (EMP) to support environmental land management projects. The City prepared and submitted a grant proposal to fund a multi -year land management program to restore and enhance degraded Coastal cactus wren habitat within the City's Otay Ranch Preserve Management Area (Otay Ranch Preserve), particularly within Salt Creek Canyon and Otay River Valley. On April 14, 2015, the EMP Working Group approved a list of projects, including Chula Vista's, to be considered for funding by SANDAG's Regional Planning Committee. In accordance with the SANDAG's selection process, to be considered eligible for grant funding, grant applicants are required to provide SANDAG with a resolution accepting grant funding, if awarded, acknowledging the City's commitment to provide matching funds through in -kind administrative services, and authorizing subsequent execution of SAN DAGs standard grant agreement. The proposed actions would ratify and approve the grant application for TransNet funding, authorize staff to accept the requested grant funds, if awarded, acknowledge the City's commitment to providing matching funds through in -kind administrative services, and authorize the City Manager to execute a grant agreement between SANDAG and the City to implement the project. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 4 Categorical Exemption pursuant to Section 15304(d) (Minor Alterations to Land) of the State CEQA Guidelines. Consistent with Section 15304(d), the proposed project involves minor alterations in lands within an existing officially designated wildlife management area (i.e., Otay Ranch Preserve) for purposes of improving existing wildlife habitat and resources. Thus, no further environmental review is required. BOARD /COMMISSION RECOMMENDATION Not Applicable City of Chula Vista Page 1 of 3 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by Legistar Page 80 File #: 15 -0159, Item #: 6. DISCUSSION SANDAG TransNet EMP Grant Funding In November 2004, the voters of San Diego County approved the TransNet Extension Ordinance 04- 01 and Expenditure Plan, including an EMP. The EMP is a funding allocation category for the costs to mitigate habitat impacts for regional transportation projects. The EMP is a unique component of the TransNet Extension in that it goes beyond traditional mitigation for transportation projects by including a funding allocation for habitat acquisition, management, and monitoring activities as needed to help implement regional habitat conservation plans. In September 2014, the SANDAG Board of Directors approved land management and monitoring activities and a budget of $1.5 million for projects that promote 1) Maintenance and Enhancement of Extant Populations of Management Strategic Plan (MSP) species and their habitats; 2) threat reduction to MSP species and their habitats from invasive species and wildfires; or 3) habitat maintenance, access control, management and volunteer coordination. SANDAG Call for Projects (CFP) and Chula Vista's Proposal In October 2014, SANDAG issued a CFP from entities wishing to apply for a portion of TransNet funds for the use of environmental land management projects. A copy of the CFP is provided as Attachment 1. On July 5, 2015, the City submitted a grant proposal requesting grant funds to support a multi -year land management program to restore and enhance degraded Coastal cactus wren habitat within the City's Otay Ranch Preserve, particularly within Salt Creek Canyon and the Otay River Valley. The Coastal cactus wren is a qualifying MSP Category SO species (species whose persistence of one or more significant occurrences in the MSP area is at high risk of loss without immediate management action above and beyond that of daily maintenance activities). A summary of the City's grant proposal and requested funding amount is provided below: Restoring and Enhancing Degraded Coastal Cactus Wren Habitat within the Otay Ranch Preserve The goal of the project is to increase the amount of suitable habitat and improve connectivity for the Coastal cactus wren along Otay River Valley and Salt Creek through restoration and enhancement of degraded habitat areas. This program addresses the immediate needs of Coastal cactus wren within Otay River Valley and Salt Creek where loss and degradation of existing wren habitat has occurred due to historical cattle grazing, increase of invasive plant species, unauthorized off -road vehicle use, drought and vegetation succession processes. Activities included in this program include invasive species control with follow -up herbicide treatments, shrub thinning, collecting and planting coast cholla and coast prickly pear cuttings, native grass and forb seed collection and redistribution, vegetation monitoring, and focused cactus wren monitoring. The methodologies used in conjunction with this proposal are similar to those used to successfully restore 27 acres of low- quality coastal cactus wren habitat located in Wolf Canyon (Otay Ranch Preserve), 9 acres in Rice Canyon (EMP Grant #5001130), and 15 acres in lower Salt Creek (EMP Grant #5001970). The grant amount requested to retain a qualified biological consultant to implement this proposal is $189,836 and would provide up to 3 -years of funding. Staff will select a qualified biological consultant to implement this project in accordance with the City's purchasing procedures set forth in Chula Vista Municipal Code (CVMC) 2.56. Attachment 2 contains the City's grant proposal. Alternatively, the City may consider amending its current contract with the Otay Ranch Preserve steward. Pending Grant Award and Eligibility Requirements On April 14, 2015 the EMP Working Group approved a list of projects to be considered for funding by SANDAG's Regional Planning Committee. The City's proposal was included on the list of projects recommend for TransNet funding. To be considered eligible for grant funding, the City is now required to provide SANDAG with a resolution authorizing City acceptance of the requested grant funds, if awarded, and execution of SANDAG's standard grant agreement. The City's grant proposal included matching funds through the use of in -kind administrative resources, more specifically, through the use of City staff time. City staff will be utilized to implement the proposed project and administer the City of Chula Vista Page 2 of 3 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by Legistar Page 81 File #: 15 -0159, Item #: 6. consultant contract. City staff time for this project, and all MSCP related projects, is assured due to the City's obligation to implement the provisions of the Chula Vista MSCP Subarea Plan and the associated MSCP implementing ordinances. This obligation is pursuant to the Implementing Agreement between the U.S. Fish and Wildlife Service, the California Department of Fish and Game, and the City of Chula Vista. Consistent with SANDAG's grant requirements, the City is also required to include a statement in the resolution assuring the City's commitment to provide matching funds through in -kind City services. Applicants that do not provide the required resolution to SANDAG by May 15, 2015 will not be eligible for grant funding. DECISION -MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. If awarded, the funds received through this grant program will support the Healthy Community goal, particularly City Initiative 3.2.1 (Implement environmental /conservation programs). The Chula Vista Multiple Species Conservation Program (MSCP) Subarea Plan and associated Implementing Agreement with the Wildlife Agencies rely on supplemental funding sources such as SANDAGs EMP to implement enhanced conservation projects (e.g., habitat restoration and habitat enhancement) for the protection of biological resources within the Otay Ranch Preserve. CURRENT YEAR FISCAL IMPACT There is no current fiscal year impact. Staff time associated with the grant application and preparation of any consulting contracts, if the grant is awarded, is within the adopted Development Services Department budget. Pursuant to the timeframe specified in the grant application, implementation of the program is not scheduled to commence until August 2015. ONGOING FISCAL IMPACT The $189,836 in grant funds would be sufficient to cover costs for a biological consultant to perform the necessary habitat restoration and provide routine maintenance and monitoring activities. If the grant funds are awarded, a separate contract will be brought to the City Council for consideration. Payment for invoices received from the biological consultant will be paid directly from grant funds provided by SANDAG. Therefore, no appropriation of funds from the General Fund is required to cover biological consultant services. If the grant funds are awarded, appropriation of funds will be added to the Fiscal Year (FY) 2015 -16 CIP Program. The cost of City staff time for three years of project management is anticipated to be $3,744. This time will be provided by City staff whose costs are projected and will be included in the proposed FY 2015 -16 budget, and future budgets for the Development Services Department. The City is not obligated to continue to implement restoration and enhancement once the grant funds have been expended. ATTACHMENTS 1. SANDAG 2015 Call for Projects 2. Chula Vista 2015 EMP Grant Proposal Staff Contact: Glen Laube, Senior Planner, Advance Planning City of Chula Vista Page 3 of 3 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by Legistar Page 82 �DAG 401 B Street, Suite 800 San Diego, G4 92101- 4231 (6? 9) 699 -1900 Fax (619) 699 -1905 www,sandag, org MEMBER AGENCIES ' Cities of Carlsbad Chula Vista Coronado Del Mar E1 Cajon Encinitas Escondido Imperial Beach La Mesa Lemon Grove National City Oceanside Poway San Diego San Marcos Santee Solana Beach Vista and County of San Diego ADVISORY MEMBERS Imperial County California Department of Transportation Metropolitan Transit System North County Transit District United States Departmen t of Defense San Diego Unified PW District San Diego County Water Autho* Southern California Tribal Chairmen's Association Mexico October 1, 2014 1200300 TO- Interested Land owners and Land Managers f r FROM: Charles "Muggs" Stoll, Director of Land Use an Transportation Planning SUBJECT: Call For Projects for the Seventh Cycle of the TransNet Environmental Mitigation Program Land Management Grant Program On September 26, 2014, the SANDAG Board of Directors approved a competitive grant process to solicit land management proposals to implement regional habitat conservation planning efforts. The SANDAG Board allocated $1.5 million of TransNet Environmental Mitigation Program funds for Land Management Grant Program projects that promote: (1) Maintenance and Enhancement of Extant Populations of Management Strategic Plan for Conserved Lands in western San Diego County (MSP) Species and their Habitats; (2) Threat Reduction to MSP Species and their Habitats from Invasive Species and Wildfires; and (3) Habitat Maintenance, Access Control/ Management and Volunteer Coordination. Attached to this memo are the overview and Instructions containing the program description, eligible projects, process for allocating funds, evaluation criteria and weighting, and the proposed call for projects schedule (Attachment A); Grant Application Form (Attachment B); and Sample Grant Agreement and Invoice Template (Attachment Q. Your organization will be required to enter into a contract and use the invoice template if your project is selected for funding by the SANDAL Board of Directors. Note that all organizations that require action by their governing body to accept funds will be required to provide a resolution or similar written authorization two weeks prior to the first SANDAL committee meeting at which a list of prioritized projects will be presented, tentatively scheduled in April 2015. The Grant Application Form (Attachment B) and required supporting materials are due to SANDAG by 4 p.m., on January 6, 2075. A pre - proposal meeting will be held on November 6, 2014, from 9 — 11 a.m., in the SANDAG Board Room to address any questions from applicants. 2015 -05 -05 Agenda Packet Page 83 The grant proposal must be submitted by the land owner or representative that has legal authority to manage the property. See Attachment A for more information on submittal requirements. Please mail the required one (1) signed hard copy (postmarks will not be accepted in lieu of this requirement) to SANDAG, Attn: Katie Levy, 401 B Street, Suite 800, San Diego, CA 92101, and email one (1) signed electronic file version to katie.levy @sandag.org to be received by 4 p.m., on January 6, 2015. For more information, please contact Katie Levy at (619) 699 -7312 or katie.levy @sandag.org. KLE /ais Attachments: A. Call for Projects for the Seventh Cycle of the TransNet Environmental Mitigation Program Land Management Grant Program: Overview and Instructions B. Call for Projects for the Seventh Cycle of the TransNet Environmental Mitigation Program Land Management Grant Program: Grant Application Form C. Call for Projects for the Seventh Cycle of the TransNet Environmental Mitigation Program Land Management Grant Program: Sample Grant Agreement and Invoice Template 2 2015 -05 -05 Agenda Packet Page 84 SANDAL Attachment A CALL FOR PROJECTS FOR THE SEVENTH CYCLE OF THE TransNet ENVIRONMENTAL MITIGATION PROGRAM (EMP) LAND MANAGEMENT GRANT PROGRAM OVERVIEW AND INSTRUCTIONS Program Description The TransNet Extension Ordinance and Expenditure Plan, as approved by the voters on November 2, 2004, includes an Environmental Mitigation Program (EMP). The EMP is a funding allocation category for the costs to mitigate habitat impacts for regional transportation projects. The EMP is a unique component of the TransNet Extension in that it goes beyond traditional mitigation for transportation projects by including a funding allocation for habitat acquisition, management, and monitoring activities as needed to help implement regional habitat conservation plans. On September 26, 2014, the SANDAG Board of Directors approved the call for projects for the seventh cycle of the EMP Land Management Grant Program with a budget of $1.5 million. Eligible Project Proposals SANDAG has allocated $1.5 million to address the top concerns related to maintaining the integrity of the regional habitat preserves. This includes maintenance and enhancement of extant populations of Management Strategic Plan for Conserved Lands in Western San Diego County (MSP) species and their habitats; threat reduction to MSP species and their habitats from invasive species and wildfires; and habitat maintenance, access control /management and volunteer coordination. It is envisioned that the $1.5 million would be part of a multi -year strategic approach. All Grant Application Form [Attachment B] and required supplementary materials (hereafter referred to as "proposal ") must be within the MSP Area (MSPA) and include one or more of the following eligible activities (applicant must identify which eligible activity best fits their proposed project): 1. Maintenance and Enhancement of Extant Populations of MSP Species and their Habitats (approximately 40% of available funds). Applicants should refer to the MSP to identify specific objectives and identified actions that have been prioritized for completion starting in this implementation cycle. Full text of the species objectives can be found in Volumes 2 and 3 of the MSP. Explicit objective(s) to be accomplished should be identified in the proposal with measureable success criteria. 2. Threat Reduction to MSP Species and their Habitats from Invasive Species and Wildfires (approximately 40% of available funds). Highest priority will be given to SLR and SO2 species. Eligible activities include management actions to reduce threats to MSP species based on recent inspections of species occurrences. Inspection results must be attached to this proposal and submitted to San Diego Management and Monitoring Program (SDMMP) (this attachment is not counted towards the twelve (12) page maximum). Category SL Species: species whose persistence in the MSPA is at high risk of loss without immediate management action above and beyond that of daily maintenance activities. 2 Category SO Species: species whose persistence of one or more significant occurrences in the MSPA is at high risk of loss without immediate management action above and beyond that of daily maintenance activities. 2015 -05 -05 Agenda Packet Page 85 Examples of activities include, but are not limited to: control of invasive plant' and animal species; planting and seeding of areas with native vegetation impacted by invasive species and /or wildfires; minimization of ignition and fuel sources to reduce intensity of spread and increase viability of MSP species; hardening of access roads; access control to reduce impacts to SL or SO species on recently burned areas. 3. Habitat Maintenance, Access Control / Manaaement and Volunteer Coordination (approximately 20% of available funds). Eligible activities include regular day -to -day habitat maintenance, management of public use combined with monitoring of effects on species and habitats, and the coordination of volunteer programs to implement management actions. This includes signage (both interpretive and cautionary), education, erosion control, culvert maintenance, fencing, patrolling public use, costs related to volunteer coordination, law enforcement, and efforts to remove garbage in existing preserve systems to allow habitat areas to recover. Eligible project proposals also include data collection /monitoring to: • Determine the effects of public use on species and vegetation communities • Track types, quantity, and seasonality of public use • Assess areas for compatible public use prior to allowing access Projects that are not ready to begin work within 12 months of submission of the proposal to SANDAG will not be eligible for this funding cycle. Project proposals approved by the SANDAG Board of Directors for funding that do not begin work within one year will be at risk of losing their funding. This grant program is intended to fund existing gaps of land management and the total length of time funded should be appropriate to the proposed project. All requests for extensions to proposed project schedules within final executed grant agreements are subject to SANDAG Board Policy No. 035, which can be found at sandag.org /legal. Process for Allocating Funds SANDAG will accept project proposals from land managers in San Diego County that will benefit regional conservation planning under the Natural Communities Conservation Planning Program. The applicant must own the land, or be designated to manage the land by the land owner under a contract or other written form of legal documentation, and should have any applicable state and federal permits prior to the initiation of work. The land must be conserved as open space for natural resources. Representatives of the land owner and land manager must be identified on the Grant Application Form (Attachment B) and be authorized in writing to enter into a grant agreement with SANDAG. Applicants must complete a Grant Application Form (Attachment B) that does not exceed twelve (12) pages. The project proposal will include the purpose of the proposed project, the scope of work, costs, and schedule. Applicants must clearly identify (1) their proposed tasks in the scope of work, (2) funding requested for each task, (3) start and end dates of the tasks, and (4) deliverables. Any required supplementary materials (with the exception of inspection results and right -of -entry permit, if applicable) will be counted towards the twelve (12) page maximum. 3 Invasive plant species: species that is determined to be impacting MSP SL or SO species, as identified in the Management Priorities for Invasive Non - native Plants, A Strategy for Regional Implementation (IPSP). UP for the Seventh Cycle of the Trans Net EMP Land Management Grant Program - Overview and Instructions 2 2015 -05 -05 Agenda Packet Page 86 All project proposals will be reviewed for eligibility, ranked, and prioritized as described below. A list of recommended project proposals will be submitted for review and recommendation to the Environmental Mitigation Program (EMP) Working Group, Regional Planning Committee (RPC), and Transportation Committee (TC); for information and review for consistency with the TransNet Extension Ordinance to the Independent Taxpayer Oversight Committee (ITOC); and for final approval by the SANDAG Board of Directors. Successful applicants will then be required to enter into a grant agreement with SANDAG for grant funding. The grant agreement signed by the parties will be in substantially the same form as the Sample Grant Agreement (Attachment C) included in the call for projects. Successful applicants will be required to submit quarterly invoices and reports on their progress and a final summary report of the project's contribution to promote habitat conservation in the region along with the final invoice and all remaining deliverables. Who Will Score The Project Proposals? An evaluation committee will be made up of EMP Working Group members and /or other qualified individuals who do not have an affiliation with any of the proposed projects will score and rank the proposals, in conformance with the criteria and values listed below. The committee will be comprised of individuals with knowledge of the regional preserve system and land management. Protests A protest by any adversely affected applicant must be made in writing and must be mailed or hand delivered to SANDAG's Protest Administrator, Charles "Muggs" Stoll, at 401 B Street, Suite 800, San Diego, CA 92101, within five (5) business days after an applicant is notified by SANDAG that its proposal is not being recommended for funding. A protest which does not strictly comply with the SANDAG protest procedures will be rejected. The Competitive Grant Program Protest Procedures can be found at the SANDAG EMP Grants web site available at sandag.org /empgrants. CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Overview and Instructions 3 2015 -05 -05 Agenda Packet Page 87 Project Proposal Evaluation and Ranking The following evaluation and ranking criteria will be used by the evaluation committee. Eligible Activity: 1. Maintenance and Enhancement of Extant Populations of MSP Species and their Habitats Project Proposal Evaluation Point Maximum Total Criteria Range Weight Score Score Score Proposed project addresses a high - priority MSP species and their habitats. SL or SO species will be given higher priority. 0 -5 5 25 Actions proposed are meeting MSP objectives and actions to be implemented. Species occurrence(s) are clearly identified within project proposal. 0 -5 5 25 Proposed project site is located within the MSP area (MSPA) and appropriate monitoring unit (MU) identified in the objectives. 0 -5 5 25 Long -term success of management activities is likely with clear, measurable positive results. Success criteria have been identified and will be monitored and reported. 0 -5 5 25 Proposed project contains multiple partners and multiple benefits AND /OR Proposed project is an important part of a larger effort already underway to recover a priority species. 0 -5 3 15 Sufficient matching funds are available to implement the proposed project. 0 -5 3 15 Proposed project promotes public awareness of sustainable land management through public participation. 0 -5 3 15 Total 145 CFP for the Seventh Cycle of the Trans Net EMP Land Management Grant Program - Overview and Instructions 4 2015 -05 -05 Agenda Packet Page 88 Eligible Activity: 2. Threat Reduction to MSP Species and their Habitats from Invasive Species and Wildfires Project Proposal Evaluation Point Maximum Total Criteria Range Weight Score Score Score Proposed project addresses a high priority MSP species and their habitats. SL or SO species will be given higher priority. 0 -5 5 25 Actions proposed are meeting MSP objectives and actions to be implemented. Species occurrence(s) are clearly identified within project proposal. 0 -5 5 25 Proposed project site is located within the MSPA and appropriate MU identified in the objectives. 0 -5 5 25 Long -term success of management activities is likely with clear, measurable positive results. Success criteria have been identified and will be monitored and reported. 0 -5 5 25 Proposed project contains multiple partners and multiple benefits AND /OR Proposed project is an important part of a larger effort already underway to recover a priority species. 0 -5 3 15 Sufficient matching funds are available to implement the proposed project. 0 -5 3 15 Proposed project promotes public awareness of sustainable land management through public participation. 0 -5 3 15 Total 145 CFP for the Seventh Cycle of the Trans Net EMP Land Management Grant Program - Overview and Instructions 5 2015 -05 -05 Agenda Packet Page 89 Eligible Activity: 3. Habitat Maintenance, Access Control /Management and Volunteer Coordination Project Proposal Evaluation Point Maximum Total Criteria Range Weight Score Score Score The proposed project activity will benefit lands set aside for MS P species and their habitats. SL or SO species and their habitats will be given higher priority. 0 -5 5 25 Long -term success of management activities is likely with clear, measurable positive results (High Cost - Effectiveness). Success criteria have been identified and will be monitored and reported. 0 -5 5 25 Action is needed to address a problem that would severely degrade a sensitive vegetation community or MSP species and their habitats. SL or SO species and their habitats will be given higher priority. 0 -5 5 25 Sufficient matching funds are available to implement the proposed project. 0 -5 3 15 Proposed project promotes public awareness of sustainable land management through public participation and volunteer coordination. 0 -5 5 25 Total 115 CFP for the Seventh Cycle of the Trans Net EMP Land Management Grant Program - Overview and Instructions 6 2015 -05 -05 Agenda Packet Page 90 Proposed Timeline (dates proposed are subject to change) October 1, 2014 — A call for projects is provided to interested stakeholders included in SANDAG's TransNet EMP stakeholder database. A call for projects also will be posted on the SANDAG EMP Grants web site, sandag.org /empgrants. November 6, 2014 — A public workshop will be provided to address any questions related to the call for projects and proposal processes. SANDAG staff will provide information and address questions on the eligibility, approval, contracting, and specific requirements of this grant program. January 6, 2015 — Proposals are due to SANDAG, to be received by 4 p.m. One (1) signed hard copy (Postmarks will not be accepted in lieu of this requirement) mailed to: SANDAG Attn: Katie Levy 401 B Street, Suite 800 San Diego, CA 92101 and one (1) signed electronic file version to katie.levy @sandag.org. January — February, 2015 — The evaluation committee will review and rank project proposals following the criteria above and forward the list of prioritized project proposals to the EMP Working Group for consideration. March, 2015 — The EMP Working Group will recommend a list of prioritized project proposals to the Regional Planning and Transportation Committees. The list of prioritized project proposals also will be provided to the Independent Taxpayer Oversight Committee to review for consistency with the Transnet Extension Ordinance. April, 2015 — The Regional Planning and Transportation Committees will be provided a list of prioritized project proposals for review and information. May, 2015 — The Regional Planning and Transportation Committees will be asked to recommend a list of prioritized project proposals for funding to the SANDAG Board of Directors. May, 2015 — The SANDAG Board of Directors will be asked to approve a list of prioritized project proposals for funding. UP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Overview and Instructions 7 2015 -05 -05 Agenda Packet Page 91 NDA G Attachment B CALL FOR PROJECTS FOR THE SEVENTH CYCLE OF THE TransNet ENVIRONMENTAL MITIGATION PROGRAM (EMP) LAND MANAGEMENT GRANT PROGRAM GRANT APPLICATION FORM Grant Application Form and required supplementary materials (hereafter referred to as "proposal ") cannot exceed twelve (12) pages) Applicant Name': Address: Phone and Email Address: Name of Property: General Location: Jurisdiction: Total Acres: Estimated Acres Requiring Management: Owner(s) of Property2: Land manager(s) of property (include name(s)): Proposal is submitted for consideration under the following eligible activity area (must identify one eligible activity that best characterizes the proposed project): ❑ Maintenance and Enhancement of Extant Populations of Management Strategic Plan for Conserved Lands in Western San Diego County (MSP) Species and their Habitats ❑ Threat Reduction to MSP Species and their Habitats from Invasive Species and Wildfires ❑ Habitat Maintenance, Access Control /Management, and Volunteer Coordination Brief Project Summary that includes your primary goal and objectives (200-word maximum) 1 While collaboration is encouraged in the development of the grant proposal, the proposal must identify one organization as the lead entity that will enter into an Agreement with SANDAG. 2 If the applicant is not the landowner, please submit a letter or right -of -entry permit from the land owner granting permission to perform the land management duties as outlined in the proposal. Failure to provide the letter or right -of -entry permit will lead to disqualification of the proposal. Attached letter or right -of -entry permit if applicable (does not count towards twelve (12) page maximum). 2015 -05 -05 Agenda Packet Page 92 Quantify Expected Results (add bullets as necessary) Brief Description of dedicated staff and /or consultants that would work on Project (200 -word maximum) Funding Needs Summary 1. Please indicate how much funding is being requested from SANDAL and any matching funding proposed: Budget Item g Requested Funding Amount Proposed Matching Funds* Description Personnel Expenses Staff $ $ Includes staff time for non - administrative work on the project Personnel Administrative Expenses $ $ Includes all staff time to administer the contract Consultant Expenses $ $ Includes all costs for consultant services Other Direct Expenses $ $ Includes all equipment, supplies, mileage, etc. Indirect Costs3 $ $ All indirect charges (e.g., overhead) on the project, if any. Totals $ $ *if applicable 2. Are there matching funds available? ❑ Yes ❑ No If yes, how are the matching funds assured (100 -word maximum)? Attach a letter from the organization /partner that ONLY provides confirmation that they are committed to providing the matching funds proposed for this project. (General letters of support not related to commitment of matching funds will NOT be accepted and will NOT be considered as part of the proposal). PROJECT PROPOSAL The proposal will include (A) the purpose of the project, (B) the scope of work by tasks, (C) the proposed budget, including matching funds, by task, and (D) a schedule for each task. Applicants must clearly identify their proposed tasks in the scope of work, funding requested for each task (please identify staff hours and cost separately from consultant costs), start and end dates of the tasks, and deliverables. Applicants are encouraged to identify phasing and prioritization of tasks in their proposal in case full funding for the project is not available. 3 Indirect Costs are only allowable if: (1) applicant has an indirect cost allocation audit approved by a qualified independent auditor or (2) the applicant's proposed method for allocating indirect costs is submitted with the proposal in accordance with OMB guidelines and approved by SANDAG. Indirect costs will not be reimbursed until one of the two conditions above are satisfied and indirect cost allocation plans must be renewed annually. CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 2 2015 -05 -05 Agenda Packet Page 93 A. Project Purpose Address the following in the proposal. 1. Describe the proposed management activity(ies) and how it relates to the Management Strategic Plan for Conserved Lands in Western San Diego County (MSP). Is there current management occurring or has past management occurred (please describe)? If the proposed management activity will continue or expand on previous efforts funded by TransNet, please describe how it will be coordinated. If the proposed management activity is based on the results from past field inspections of the species occurrence, describe the conditions and management needs identified and whether or not the data has been provided to the SDMMP. If implementing fire management actions, describe the management technique being used and whether a fire plan currently exists. 2. Which MSP species and their habitats will benefit from the proposed management activity? Which specific MSP objective(s) and actions) will be implemented (please reference the relevant MSP volume and page number)? Name the specific MSP species occurrence(s) to benefit from the management activity, if applicable. 3. Is the proposed project within the MSP area (MSPA)? In which Management Unit (MU) is the project located? Attach a map. 4. Describe the stressors and /or threats to the MSP species and their habitats in the project area that will be addressed through implementation of this project proposal. 5. Describe the management techniques proposed, including whether they have been previously used successfully and where. Are there any negative effects to MSP and other sensitive species and their habitats that could result from the proposed management action? 6. What strategic approach will be used to ensure the successful, long -term outcome of the proposed project (e.g. upstream exotic removal prior to downstream, future on -going maintenance)? Which adjacent conserved lands will not be included and why? 7. What are the goals and objectives for the proposed project? What criteria /metrics will be used to measure success? If applicable, what quantitative monitoring data will be collected to evaluate success? Who will be collecting the monitoring data and what are their qualifications? How would the proposed project involve public outreach /public participation, volunteers and /or community events to highlight the land management activities being funded and promote awareness of the grant- funded project? Please quantify your response as much as possible. 9. How will the applicant manage the data collected? What software will be used to house the data? Who will be responsible for compiling and transferring the data to SAN DAG? Who will be preparing the required quarterly, final, and all other reports? 10. Has the proposed project received TransNet EMP funds previously? If so, what was accomplished with the funds and why are additional funds being requested? 11. Is the proposed activity being done on land that was previously set aside as mitigation? If yes, please elaborate. CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 3 2015 -05 -05 Agenda Packet Page 94 B. Scope of Work by Task Please break down the proposal into discrete tasks and include a task name, description of each task, quantifiable expected results, and discrete deliverables for each task. Note: make sure to list tasks for quarterly reporting on the status of the grant project and a final report on the outcome of the grant project. The applicant should choose one of the three eligible activities, described in the call for projects, that best characterizes their project for consideration under this grant program and list tasks that further the objectives of the selected activity. You may add or subtract rows as needed. Exhibit A — Proposed Project Scope of Work Task # Task Name Task Description Quantifiable Results /Deliverables 1 Name of Task Describe Task List the quantifiable results and deliverables 2 3 4 5 .... Administrative CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 4 2015 -05 -05 Agenda Packet Page 95 C. Budget by Task Please include a specific budget for each task described in the Scope of Work (section B above). This should include both requested SANDAG funds and any matching funds proposed. If matching funds are proposed, please distribute the match commitment proportionately'. For projects requesting funding for more than one year, please indicate the requested funding and match for each year. Applicants are encouraged to identify phasing in their proposal in case full funding for the project is not available. You may add or subtract rows and columns as needed. This grant program is intended to fund existing gaps of land management and will not cover on -going annual costs within applicant's organization. Exhibit B — Proposed Project Budget Task # Task Name Year 1 Grant Request Year 1 Matching Funds' Year 2 Grant Request Year 2 Matching Funds' Year 3 Grant Request Year 3 Matching Funds' Year 4 Grant Request Year 4 Matching Funds' Year 5 Grant Request Year 5 Matching Funds' Total Grant Request Total Matching Funds Total Project Cost 1 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 2 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 3 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 4 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - 5 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - .... Administrative $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Sub Total $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Indirect Cost (_ %) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - TOTAL $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - PERCENTAGE % % % % % % % % % % % % % 1 Throughout the Project, Matching Funds must be proportionate to Total Project Costs (Grant Request and Matching Funds combined). For example, if a proposed project Year 1 Grant Request is $80,000 and proposed Year 1 Matching Funds are $20,000, the Total Year 1 Project Costs are $100,000. Therefore, the required proportionate matching funds to provide per invoice during Year 1 of the project are 20% (e.g. invoice submitted for $8,000 grant amount reimbursement and $2,000 matching funds submitted). However, if the Year 2 Grant Request is $70,000 and proposed Year 2 Matching Funds are $30,000, while the Total Year 2 Project Costs also are $100,000, the required proportionate matching funds increases per invoice during Year 2 of the project to 30% (e.g. invoice submitted for $7,000 grant amount reimbursement and $3,000 matching funds submitted). Retention will be withheld beyond the ten percent (10 %) retention for each invoice submittal that does not meet the proportionate matching funds requirement. These additional matching funds retained will not be released until the proportionate matching funds are reached for the project to -date. CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form E 2015 -05 -05 Agenda Packet Page 96 D. Project Schedule Please include start and end dates relative to the anticipated Notice to Proceed (assumes fall 2015) for each task described in the Scope of Work (section B above). Please list tasks for quarterly reporting on the status of the grant project and a final report on the outcome of the grant project. You may add or subtract rows as needed. Exhibit C - Proposed Project Schedule (Assumes fall 2015 NTP) Task # Task Name Proposed Start Date Months Needed to Complete Task Task End Date 1 "n" Months from NTP "n" Months from NTP MM /DD /YYY 2 "n" Months from NTP "n" Months from NTP MM /DD /YYY 3 "n" Months from NTP "n" Months from NTP MM /DD /YYY 4 "n" Months from NTP "n" Months from NTP MM /DD /YYY 5 "n" Months from NTP "n" Months from NTP MM /DD /YYY ... "n" Months from NTP "n" Months from NTP MM /DD /YYY ... Administrative "n" Months from NTP "n" Months from NTP MM /DD /YYY Notes: Please explain why and how much additional time would be needed in the event of any delays due to NTP being provided beyond fall 2015 and/or unexpected weather conditions such as drought that could occur during the proposed project implementation. NOTICE REGARDING PREVAILING WAGES SANDAG's EMP Land Managemennt Grant Program projects are funded with TransNet revenues consistent with the TransNet Extension Ordinance adopted by the voters in November 2004 (SANDAG Ordinance 04 -01). Although SANDAL Ordinance 04 -01 does not require payment of prevailing wages, California law may require that public works projects pay prevailing wages for workers. Applicant acknowledges that SANDAG has strongly encouraged Applicant to seek legal counsel regarding whether the the Proposed Project will require applicant to pay prevailing wages and agrees that SANDAG will have no liability for conducting this analysis. El Yes [:1 No Applicant acknowledges that if awarded an EMP Land Management Grant, the grant agreement between SANDAG and the grantee requires grantee's compliance with all federal, state and local laws and ordinances applicable to the Agreement. El Yes ❑ No CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 6 2015 -05 -05 Agenda Packet Page 97 REQUIRED STATEMENTS FROM APPLICANT r_1 Yes ❑ No The applicant has read and understands the Sample Grant Agreement (Agreement) and Invoice Template (Attachment Q. ❑ Yes ❑ No If the SANDAG Board of Directors approves the proposed project proposal, the proposed applicant agrees to sign and return the Agreement to SAN DAG, without exceptions or amendments, within 45 days of receipt. ❑ Yes ❑ No The applicant agrees to comply with SANDAG's Board Policy No. 035 "Competitive Grant Program Procedures," which outlines "Use- it -or- lose -it" project milestone and completion deadlines. Board Policy No. 035 is included in the Agreement, and is also on SAN DAG's website at the following link: http: / /www.sanda .orore/organization /about /pubs /policy 035.pdf ❑ Yes ❑ No The applicant understands that ten percent (10 %) of all invoices will be retained until the completion of the proposed project. ❑ Yes ❑ No The applicant understands that for proposed projects with matching funds, retention will be withheld beyond the ten percent (10 %) retention for each invoice submittal that does not meet the proportionate matching funds requirement. These additional matching funds retained will not be released until the proportionate matching funds are reached for the project to -date. ❑ Yes ❑ No The applicant understands that all invoices must be accompanied by written, documented support of the charges for both requested reimbursement of grant funds and matching funds and payment will not be made by SANDAG until all documents are satisfactorily submitted. ❑ Yes ❑ No The applicant understands that invoices and reports must be submitted on a quarterly basis within three weeks after the period covering January 1 to March 31; within three weeks after the period covering April 1 to June 30; within three weeks after the period covering July 1 to September 30; and within three weeks after the period covering October 1 to December 31. ❑ Yes ❑ No The applicant understands that the final invoice must be accompanied by written, documented support of the charges for both requested reimbursement of grant funds and matching funds; a final report; and all outstanding deliverables in order to receive final payment and have retained funds released. ❑ Yes ❑ No The applicant understands that to be considered eligible for funding, a resolution complying with the requirements of Board Policy No. 035, Section 4.1, must be submitted to SANDAG at least two weeks prior to the recommendation by the Regional Planning Committee of the list of prioritized project proposals. SANDAG will provide applicants with advance notice of the Regional Planning Committee's anticipated meeting date. ❑ Yes ❑ No The applicant agrees to submit all project data/information to SANDAG in a format compatible with the regional management database. 1 have the authorization to submit this proposal (Grant Application Form and required supplementary materials) on behalf of my organization. Applicant Name /Title (print or type) mm /dd /yy Applicant Signature Date CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 7 2015 -05 -05 Agenda Packet Page 98 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL Dated: /5 AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND THE SAN DIEGO ASSOCIATION OF GOVERNMENTS (SANDAL) FOR THE SEVENTH CYCLE OF THE TRANSNET ENVIRONMENTAL MITIGATION PROGRAM (EMP) LAND MANAGEMENT GRANT 2015 -05 -05 Agenda Packet Page 99 Attachment C FOR INFORMATION ONLY DO NOT FILL OUT TransNet ENVIRONMENTAL MITIGATION PROGRAM FISCAL YEAR 2015 SAMPLE GRANT AGREEMENT [AGREEMENT NUMBEh BETWEEN THE SAN DIEGO ASSOCIATION OF GOVERNMENTS AND [INSERT NAME] REGARDING LINSERT DESCRIPTION] THIS GRANT AGREEMENT ( "Agreement ") is made this [Day] day of [Month], [Year], by and between the San Diego Association of Governments ( "SANDAG "), 401 B Street, Suite 800, San Diego, California, and [Land Management Organization], ( "Grantee "), [address]. This Agreement expires on [Month] [Day], [Year], unless amended in writing by mutual agreement of the parties. The following recitals are a substantive part of this Agreement: A. The TransNet Extension Ordinance, which became effective April 1, 2008, contains provisions for the creation of an Environmental Mitigation Program (EMP). B. In January 2010, the SANDAG Board of Directors approved Board Policy No. 035 — Competitive Grant Program Procedures ( "Board Policy No. 035 "), which is included as Exhibit D. This grant award, Agreement and the Grantee's performance thereunder is subject to Board Policy No. 035, which includes multiple "use it or lose it" provisions. C. The SANDAG Board of Directors has allocated EMP monies to a Regional Habitat Conservation Fund, and awards these monies through a competitive grant process to provide funding for regional habitat management and monitoring activities. D. On [Month] [Day], [Year], SANDAG issued a request for proposals from entities wishing to apply for a portion of the TransNet EMP Regional Habitat Conservation funds for use on environmental land management grant projects meeting certain criteria. E. On [Month] [Dayl, [Year], the Board of Directors approved the award of $1.5 million in TransNet EMP Regional Habitat Conservation funds for this FY 2015 program cycle. F. Grantee successfully applied for EMP Regional Habitat Conservation funds for the following project: [Project Name] ( "Project "). G. The purpose of this Agreement is to establish the terms and conditions for SANDAG to provide Grantee with funding to implement the Project ( "TransNet Ordinance Assistance "). H. Although SANDAG will be providing financial assistance to Grantee to support the Project, SANDAG will not take an active role in managing the Project or retain substantial control over any portion of the Project. Therefore, this Agreement is characterized as a funding agreement rather than a cooperative agreement. NOW, THEREFORE, it is agreed as follows: 2015 -05 -05 Agenda Packet Page 100 Section 1. Definitions A. Application means the signed and dated grant application, including any amendment thereto, with all explanatory, supporting, and supplementary documents filed with SANDAG by or on behalf of the Grantee and accepted or approved by SANDAL. All of Grantee's application materials, not in conflict with this Agreement, are hereby incorporated into this Agreement as though fully set forth herein. B. Agreement means this grant agreement, together with all attachments hereto, which are hereby incorporated into this Agreement and which contain additional terms and conditions that are binding upon the parties. C. Approval, Authorization, Concurrence, Waiver means a conscious written statement (transmitted in typewritten hard copy or electronically) of a SANDAG official authorized to permit the Grantee to take or omit an action required by this Agreement, which action may not be taken or omitted without such permission. Except to the extent that SANDAG determines otherwise in writing, such approval, authorization, concurrence, or waiver permitting the performance or omission of a specific action does not constitute permission to perform or omit other similar actions. An oral permission or interpretation has no legal force or effect. (See also Notice to Proceed, below at paragraph G in this Section 1.) D. Approved Project Budget means the most recent statement of the costs of the Project, the maximum amount of assistance from SANDAG for which the Grantee is currently eligible, the specific tasks (including specific contingencies) covered, and the estimated cost of each task that has been approved by SANDAL. E. Grantee means that, even if a single organization or division within a legal entity has executed this Agreement as the Grantee, the entire legal entity is the Grantee. If the Grantee is a consortium, partnership, or other multi -party entity, each participant in, member of, or party to that consortium, partnership, or multi -party entity is deemed "Grantee" for purposes of compliance with applicable requirements of the Agreement for the Project. Note to SANDAG Contracts Staff: Please complete Section F. "Maximum Percentage of SANDAG Participation" only if grantee committed matching funds in its grant application. If grantee did not commit matching funds in its application, please delete Section F, and adjust the Section letters, below, accordingly. Thank you. F. Maximum Percentage of SANDAG Participation. Grantee submitted an application and was evaluated based on its representation that it would provide matching funds for the Project. Grantee agrees to provide percent ( %), or $ of the Approved Project Budget as matching funds from resources other than the EMP Regional Habitat Conservation funds. Therefore, the maximum percentage that SANDAG will pay Grantee for amounts invoiced under this Agreement is percent, ( %), or $ , whichever is the lesser of these two amounts. 6 2015 -05 -05 Agenda Packet Page 101 G. Notice to Proceed means a written notice from SANDAG issued to the Grantee authorizing the Grantee to proceed with all or a portion of the work described in the Scope of Work. Grantee shall not proceed with the work, and shall not be eligible to receive payment for work performed, prior to SANDAG's issuance of a Notice to Proceed. H. Subgrantee means any contractor or consultant, at any tier, paid directly or indirectly with funds flowing from this Agreement for the Project. Section 2. Project Implementation A. General. The Grantee agrees to carry out the Project as follows: 1. Project Description. Grantee agrees to perform the work as described in the Scope of Work attached as Exhibit A. 2. Effective Date. The effective date of the Agreement or any amendment thereto is the date on which this Agreement is fully executed. The Grantee agrees to undertake Project work promptly after receiving a Notice to Proceed. 3. Grantee's Capacity. The Grantee agrees to maintain or acquire sufficient legal, financial, technical, and managerial capacity to: (a) plan, manage, and complete the Project and provide for the use of any Project property; (b) carry out the safety and security aspects of the Project, and (c) comply with the terms of the Agreement and all applicable laws, regulations, and policies pertaining to the Project and the Grantee, including but not limited to the TransNet Ordinance. 4. Project Schedule. The Grantee agrees to complete the Project in a timely manner. Nevertheless, SANDAG and the Grantee agree that milestone dates and other Project completion dates set forth in the Project Schedule attached hereto as Exhibit B are to be treated as good faith estimates rather than precise and firm legal requirements. Changes to Exhibit B or any other Exhibit to the Agreement, shall require written approval from SANDAG and compliance with Board Policy No. 035. 5. Use It or Lose It Policy. Grantee agrees to comply with Board Policy No. 035 , attached hereto as Exhibit D. The Project is subject to any amendments to Board Policy No. 035 occurring after the execution of the Agreement, which are incorporated herein by reference. 6. Media and Community Outreach Coordination. The Grantee agrees to notify SANDAG of any media and community outreach efforts, including presentations to community groups, other agencies, and elected officials. The Grantee agrees to assist SANDAG with media or community events related to the grant- funded project, such as ground breakings, and ribbon cuttings, and community workshops. Press materials shall be provided to SANDAG staff before they are distributed. SANDAG logo(s) should be included in press materials and other project collateral, but may never be included in such documents without advance approval from SANDAG. 3 2015 -05 -05 Agenda Packet Page 102 As part of the quarterly reports submitted to SANDAL, the Grantee agrees to provide project milestone information to support media and communications efforts. This includes before and after photos, project milestone photos, and photos taken throughout different planning or construction phases and throughout the length of the project. The photos should be high resolution (at least 4 inches by 6 inches with a minimum of 300 pixels per inch) and contain captions with project descriptions, dates, locations, and the names of those featured, if appropriate. Before and after photos should be taken from similar angles to showcase how a particular area has been transformed over time, or photos of plans (for planning projects) should be provided from various angles. SANDAG reserves the right to use the information provided by the Grantee for any combination of the following: social media posts, online photo albums, videos, press releases, PowerPoint presentations, web updates, newsletters, and testimonials. The Grantee agrees to release the rights to these photos to SANDAG. B. Application of Laws. Should a federal or state law pre -empt a local law, regulation, or the TransNet Ordinance, the Grantee must comply with the federal or state law and implementing regulations. No provision of the Agreement requires the Grantee to observe or enforce compliance with any provision, perform any other act, or do any other thing in contravention of federal, state, territorial, or local law, regulation, or ordinance. If compliance with any provision of the Agreement violates or would require the Grantee to violate any law, the Grantee agrees to notify SANDAG immediately in writing. Should this occur, SANDAG and the Grantee agree that they will make appropriate arrangements to proceed with or, if necessary, terminate the Project or affected portions thereof expeditiously. C. Notice Regarding Prevailing Wages. SANDAG's EMP grants are funded with TransNet revenues consistent with the TransNet Extension Ordinance adopted by the voters in November 2004 (SANDAG Ordinance 04 -01). Although SANDAG Ordinance 04 -01 does not require payment of prevailing wages, California law may require that Grantee's public works projects pay prevailing wages for workers. Grantee acknowledges that SANDAG has strongly encouraged Grantee to seek legal counsel regarding whether the Project will be subject to prevailing wage laws consistent with Labor Code Section 1720, et seq. This Agreement requires Grantee's compliance with all federal, state, and local laws and ordinances as applicable. D. Significant Participation by a Subgrantee. Although the Grantee may delegate any or almost all Project responsibilities to one or more subgrantees, the Grantee agrees that it, rather than any subgrantee, is ultimately responsible for compliance with all applicable laws, regulations, and compliance with this Agreement. E. Third Party Contracting 1. Grantee shall not award contracts over three thousand dollars ($3,000) on the basis of a noncompetitive procurement for work to be performed under this Agreement without the prior written approval of SANDAG. Contracts awarded by Grantee, if intended as local match credit, must meet the requirements set forth in this Agreement regarding local match funds. 4 2015 -05 -05 Agenda Packet Page 103 2. Any subagreement, lease, third party contract or other legally binding document entered into by Grantee as a result of this Agreement shall mandate that travel and per diem reimbursements and third party contract reimbursements to subgrantees, lessees or third party contractors will be allowable as Project costs only after those costs are incurred and paid for by the subgrantee, lessee or third party contractor and only to the extent they do exceed the rates found at: www.dot.ca.gov /hq /asc /travel /ch 12.htm. F. Grantee's Responsibility to Extend Agreement Requirements to Other Entities 1. Entities Affected. Grantee agrees to take appropriate measures necessary to ensure that all Project participants comply with all applicable Federal laws, regulations, and policies affecting Project implementation. In addition, if an entity other than the Grantee is expected to fulfill any responsibilities typically performed by the Grantee, the Grantee agrees to assure that the entity carries out the Grantee's responsibilities as set forth in this Agreement. 2. Documents Affected. The applicable provisions of laws, regulations, and policies determine the extent to which those provisions affect an entity (such as a subgrantee) participating in the Project through the Grantee. Thus, the Grantee agrees to use a written document to ensure that each entity participating in the Project complies with applicable laws, regulations, and policies. a . Required Clauses. The Grantee agrees to use a written document (such as a subagreement, lease, third party contract or other legally binding document) including all appropriate clauses stating the entity's responsibilities under applicable laws, regulations, or policies. b . Flowdown. The Grantee agrees to include in each document (subagreement, lease, third party contract, or other) any necessary provisions requiring the Project participant (third party contractor, subgrantee, or other) to impose applicable laws, Agreement requirements and directives on its subgrantees, lessees, third party contractors, and other Project participants at the lowest tier necessary. G. No SANDAG Obligations to Third Parties. In connection with the Project, the Grantee agrees that SANDAG shall not be subject to any obligations or liabilities to any subgrantee, lessee, third party contractor, or other person or entity that is not a party to the Agreement for the Project. Notwithstanding that SANDAG may have concurred in or approved any solicitation, subagreement, lease, or third party contract at any tier, SANDAG has no obligations or liabilities to any entity, including any subgrantee, lessee, or third party contractor at any tier, other than the Grantee. H. Changes in Project Performance (i.e., Disputes, Breaches, Defaults, or Litigation). The Grantee agrees to notify SANDAG immediately, in writing, of any change in local law, conditions (including its legal, financial, or technical capacity), or any other event that may adversely affect the Grantee's ability to perform the Project in accordance with the terms of the Agreement, and as required by Board Policy No. 035. The Grantee also agrees to notify SANDAG immediately, in writing, of any current or prospective major dispute, breach, default, 5 2015 -05 -05 Agenda Packet Page 104 or litigation that may adversely affect SANDAG's interests in the Project; and agrees to inform SANDAG, also in writing, before naming SANDAG as a party to litigation for any reason, in any forum. At a minimum, the Grantee agrees to send each notice to SANDAG required by this subsection to SANDAG's Office of General Counsel. I. Standard of Care. The Grantee expressly warrants that the work to be performed pursuant to this Agreement shall be performed in accordance with the applicable standard of care. Where approval by SANDAG, the Executive Director, or other representative of SANDAG is indicated in the Scope of Work, it is understood to be conceptual approval only and does not relieve the Grantee of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Grantee or its subgrantees. Section 3. Ethics -For Federal agency grantees, this section may be subject to modification] A. Grantee Code of Conduct /Standards of Conduct. The Grantee agrees to maintain a written code of conduct or standards of conduct that shall govern the actions of its officers, employees, board members, or agents engaged in the award or administration of subagreements, leases, or third party contracts supported with TransNet Ordinance Assistance. The Grantee agrees that its code of conduct or standards of conduct shall specify that its officers, employees, board members, or agents may neither solicit nor accept gratuities, favors, or anything of monetary value from any present or potential subgrantee, lessee, or third party contractor at any tier or agent thereof. Such a conflict would arise when an employee, officer, board member, or agent, including any member of his or her immediate family, partner, or organization that employs, or intends to employ, any of the parties listed herein has a financial interest in an entity competing for award. The Grantee may set de minimis rules where the financial interest is not substantial, or the gift is an unsolicited item of nominal intrinsic value. The Grantee agrees that its code of conduct or standards of conduct shall also prohibit its officers, employees, board members, or agents from using their respective positions in a manner that presents a real or apparent personal or organizational conflict of interest or appearance of personal gain. As permitted by state or local law or regulations, the Grantee agrees that its code of conduct or standards of conduct shall include penalties, sanctions, or other disciplinary actions for violations by its officers, employees, board members, or their agents, or its third party contractors or subgrantees or their agents. 1. Personal Conflicts of Interest. The Grantee agrees that its code of conduct or standards of conduct shall prohibit the Grantee's employees, officers, board members, or agents from participating in the selection, award, or administration of any third party contract or subagreement supported by TransNet Ordinance Assistance if a real or apparent conflict of interest would be involved. Such a conflict would arise when an employee, officer, board member, or agent, including any member of his or her immediate family, partner, or organization that employs, or intends to employ, any of the parties listed herein has a financial interest in a firm competing for award. 2. Organizational Conflicts of Interest. The Grantee agrees that its code of conduct or standards of conduct shall include procedures for identifying and preventing real and 101 2015 -05 -05 Agenda Packet Page 105 apparent organizational conflicts of interest. An organizational conflict of interest exists when the nature of the work to be performed under a proposed third party contract or subagreement may, without some restrictions on future activities, result in an unfair competitive advantage to the third party contractor or subgrantee or impair its objectivity in performing the contract work. B. SANDAG Code of Conduct. SANDAG has established policies concerning potential conflicts of interest. These policies apply to Grantee. For all awards by SANDAG, any practices which might result in unlawful activity are prohibited including, but not limited to, rebates, kickbacks, or other unlawful considerations. SANDAG staff is specifically prohibited from participating in the selection process when those staff have a close personal relationship, family relationship, or past (within the last 12 months), present, or potential business or employment relationship with a person or business entity seeking a contract. It is unlawful for any contract to be made by SANDAG if any individual board member or staff has a prohibited financial interest in the contract. Staff is also prohibited from soliciting or accepting gratuities from any organization seeking funding from SANDAG. SANDAG's officers, employees, agents, and board members shall not solicit or accept gifts, gratuities, favors, or anything of monetary value from consultants, potential consultants, or parties to subagreements. By signing this Agreement, Grantee affirms that it has no knowledge of an ethical violation by SANDAG staff or Grantee. If Grantee has any reason to believe a conflict of interest exists with regard to the Agreement or the Project, it should notify the SANDAG Office of General Counsel immediately. C. Bonus or Commission. The Grantee affirms that it has not paid, and agrees not to pay, any bonus or commission to obtain approval of its TransNet Ordinance Assistance application for the Project. D. False or Fraudulent Statements or Claims. The Grantee acknowledges and agrees that by executing the Agreement for the Project, the Grantee certifies or affirms the truthfulness and accuracy of each statement it has made, it makes, or it may make in connection with the Project. Section 4. Amount of Funding Assistance The Grantee agrees that SANDAG will provide TransNet Ordinance Assistance for the Project equal to the smallest of the following amounts: (a) the "Maximum SANDAG Amount Approved" of $ , or (b) the amount calculated in accordance with the "Maximum Percentage(s) of SANDAG Participation," which is percent ( %). SANDAG's responsibility to make payments under this Agreement is limited to the amounts listed in the Approved Project Budget for the Project. Grantee's estimate in its application for funding from SANDAG for the Project is the amount that forms the basis upon which SANDAG determines the "Maximum SANDAG Amount Awarded" and "Maximum Percentage(s) of SANDAG Participation." Note to SANDAG Contracts Staff: If grantee did not commit matching funds in the grant application, please delete Section 5. "Matching Funds" 7 2015 -05 -05 Agenda Packet Page 106 from the agreement, and renumber following sections accordingly. Thank you. Section 5. Matching Funds Grantee has proposed to provide matching funds for the Project and therefore agrees as follows: A. Duty to Obtain Matching Funds. The Grantee agrees to provide sufficient funds or approved in -kind resources, together with the TransNet Ordinance Assistance awarded, that will assure payment of the actual cost of each Project activity covered by the Agreement for the Project. The amount of matching funds and percentage(s) of matching funds Grantee shall provide are set forth in the Approved Project Budget. The Grantee agrees to complete all proceedings necessary to provide its share of the Project costs at or before the time the matching funds are needed for Project costs. B. Prompt Payment of Matching Funds. The Grantee agrees to provide the proportionate amount of the matching funds promptly as it incurs Project costs or Project costs become due. C. Reduction of Matching Funds. The Grantee agrees that no refund or reduction of the amount of matching funds may be made unless, at the same time, a reduction of the proportional amount of the TransNet Ordinance Assistance provided is made to SANDAG in order to maintain the Maximum Percentage(s) of SANDAG Participation. Section 6. Approved Project Budget The Grantee and SANDAG have agreed to a Project budget that is designated the "Approved Project Budget." The Grantee will incur obligations and make disbursements of Project funds only as authorized by the Approved Project Budget. An amendment to the Approved Project Budget requires the issuance of a formal amendment to the Agreement, unless the reallocation of funds among budget items or fiscal years does not increase the total amount of the TransNet Ordinance Assistance awarded for the Project, does not negatively impact the benefits obtained from the Project and is consistent with applicable laws, regulations, and policies. However, a formal amendment to the Agreement is required for all amendments to the Approved Project Budget once cumulative transfers of funds among budget items or fiscal years exceed ten percent (10 %) of the total budget. Prior SANDAG approval is still required for transfers of funds between non - construction and construction categories or when, in non - construction grants, cumulative transfers of funds between budget items or fiscal years amount to less than ten (10) percent of the total budget. Section 7. Payments A. Grantee's Request for Payment When Matching Funds Are Required. The Grantee will demonstrate or certify that it will provide adequate matching funds such that, when combined with payments from SANDAG, will cover all costs to be incurred for the Project. Except to the extent that SANDAG determines, in writing, that the Grantee may defer its 8 2015 -05 -05 Agenda Packet Page 107 provision of matching funds for the Project, a Grantee is required under the terms of this Agreement to provide matching funds for the Project and agrees that it will not: 1. Request or obtain matching funds exceeding the amount justified by the matching share previously provided, or 2. Take any action that would cause the proportion of TransNet Ordinance Assistance made available to the Project at any time to exceed the percentage authorized by the Agreement for the Project. B. Payment by SANDAG. Upon receiving a request for payment and adequate supporting information, SANDAG will make payment for eligible amounts to Grantee within thirty (30) days if Grantee has complied with the requirements of the Agreement, has satisfied SANDAG that the TransNet Ordinance Assistance requested is needed for Project purposes in that requisition period, and is making adequate progress toward Project completion consistent with Board Policy No. 035. After the Grantee has demonstrated satisfactory compliance with the preceding requirements, SANDAG may reimburse the Grantee's apparent allowable costs incurred (or to be incurred in the requisition period), as set forth in the Approved Project Budget for the Project. Grantee shall use the Sample Invoice Template, attached hereto as Exhibit E. when submitting invoices to SANDAG. [For federal agency grantees, the following sentence will be removed] SANDAG shall retain ten percent (10 %) from the amounts invoiced until satisfactory completion of work. SANDAG shall promptly release retention amounts to Grantee following Grantee's satisfactory completion of work, receipt of Grantee's final invoice and all required documentation. C. Costs Reimbursed. The Grantee agrees that Project costs eligible for TransNet Ordinance Assistance must comply with all the following requirements, unless SANDAG determines otherwise in writing. To be eligible for reimbursement, Project costs must be: 1. Consistent with the Project Description, the Approved Project Budget, and other provisions of the Agreement, 2. Necessary in order to accomplish the Project, 3. Reasonable for the goods or services purchased, 4. Actual net costs to the Grantee (i.e., the price paid minus any refunds, rebates, or other items of value received by the Grantee that have the effect of reducing the cost actually incurred, excluding program income), 5. Incurred for work performed after the Effective Date of the Agreement, and following Grantee's receipt of a Notice to Proceed from SANDAG, 6. Satisfactorily documented, 7. Treated consistently in accordance with accounting principles and procedures approved by SANDAG for the Grantee, and with accounting principles and procedures approved by the Grantee for its third party contractors and subgrantees, and We 2015 -05 -05 Agenda Packet Page 108 8. Eligible for TransNet Ordinance Assistance as part of the EMP. 9. Indirect Costs are only allowable with prior SANDAG approval. Grantee must submit the following documentation as part of the grant proposal : (1) an indirect cost allocation audit approved by a qualified independent auditor or (2) the proposed method for allocating indirect costs is in accordance with OMB guidelines. Indirect cost allocation plans must be reviewed and renewed annually. D. Excluded Costs 1. In determining the amount of TransNet Ordinance Assistance SANDAG will provide for the Project, SANDAG will exclude: a . Any Project cost incurred by the Grantee before the Effective Date of the Agreement or applicable Amendment thereto; b . Any cost that is not included in the latest Approved Project Budget; c . Any cost for Project property or services received in connection with a subagreement, lease, third party contract, or other arrangement that is required to be, but has not been, concurred in or approved in writing by SANDAG; d. Any cost ineligible for SANDAG participation as provided by applicable laws, regulations, or policies. 2. The Grantee understands and agrees that payment to the Grantee for any Project cost does not constitute SANDAG's final decision about whether that cost is allowable and eligible for payment under the Project and does not constitute a waiver of any violation by the Grantee of the terms of the Agreement for the Project. The Grantee acknowledges that SANDAG will not make a final determination about the allowability and eligibility of any cost until the final payment has been made on the Project or the results of an audit of the Project requested by SANDAG or its Independent Taxpayers' Oversight Committee (ITOC) has been completed, whichever occurs latest. If SANDAG determines that the Grantee is not entitled to receive any portion of the TransNet Ordinance Assistance requested or paid, SANDAG will notify the Grantee in writing, stating its reasons. The Grantee agrees that Project closeout will not alter the Grantee's responsibility to return any funds due to SANDAG as a result of later refunds, corrections, or other similar transactions; nor will Project closeout alter SANDAG's right to disallow costs and recover funds provided for the Project on the basis of a later audit or other review. E. Federal Claims, Excess Payments, Disallowed Costs, including Interest 1. Grantee's Responsibility to Pay. Upon notification to the Grantee that specific amounts are owed to SANDAG, whether for excess payments of TransNet Ordinance Assistance, disallowed costs, or funds recovered from third parties or elsewhere, the Grantee agrees to promptly remit to SANDAG the amounts owed, including applicable interest, penalties, and administerative charges. 10 2015 -05 -05 Agenda Packet Page 109 Section 8. Accounting Records In compliance with applicable laws, regulations, and policies, the Grantee agrees as follows: A. Project Accounts. The Grantee agrees to establish and maintain for the Project either a separate set of accounts or separate accounts within the framework of an established accounting system that can be identified with the Project. The Grantee also agrees to maintain all checks, payrolls, invoices, contracts, vouchers, orders, or other accounting documents related in whole or in part to the Project so that they may be clearly identified, readily accessible, and available to SANDAG upon request and, to the extent feasible, kept separate from documents not related to the Project. B. Documentation of Project Costs and Program Income. Except to the extent that SANDAG determines otherwise, in writing, the Grantee agrees to support all costs charged to the Project, including any approved services or property contributed by the Grantee or others, with properly executed payrolls, time records, invoices, contracts, or vouchers describing in detail the nature and propriety of the charges, including adequate records to support the costs the Grantee has incurred underlying any payment SANDAG has agreed to participate in based upon a "payable" milestone. Section 9. Reporting, Record Retention, and Access A. Types of Reports. The Grantee agrees to submit to SANDAG a l l reports required by law and regulation, policy, this Agreement, and any other reports SANDAG may specify. B. Report Formats. The Grantee agrees that all reports and other documents or information intended for public availability developed in the course of the Project and required to be submitted to SANDAG must be prepared and submitted in electronic and /or typewritten hard copy formats, as SANDAG may specify. SANDAG reserves the right to specify that records be submitted in particular formats. C. Record Retention. During the course of the Project and for three years thereafter from the date of transmission of the final expenditure report, the Grantee agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the Project as SANDAG may require. D. Access to Records of Grantees and Subgrantees. The Grantee agrees to permit, and require its subgrantees to permit, SANDAG or its authorized representatives, upon request, to inspect all Project work, materials, payrolls, and other data, and to audit the books, records, and accounts of the Grantee and its subgrantees pertaining to the Project. E. Project Closeout. The Grantee agrees that Project closeout does not alter the reporting and record retention requirements of this Agreement. F. Quarterly Reports. It shall be the responsibility of Grantee to advise SANDAG on a quarterly basis of the progress of its work, expenditures incurred, and information regarding whether the Project is projected to comply with the fee payment schedule and Project budget limits. 11 2015 -05 -05 Agenda Packet Page 110 The quarterly progress report shall be submitted in writing to SANDAG within three weeks after the periods covering January 1 to March 31; April 1 to June 30; July 1 to September 30; and October 1 to December 31. Grantee shall document the progress and results of work performed under this Agreement to the satisfaction of SANDAG and, if applicable, to the satisfaction of any government agency as directed by SANDAG. This may include progress and final reports, plans, specifications, estimates, or other evidence of attainment of the Agreement objectives, which are requested by SANDAG or ITOC. Grantee may be required to attend meetings of SANDAG staff and committees, including but not limited to ITOC, the Regional Planning Committee, and the SANDAG Board of Directors, to report on its progress and respond to questions. Section 10. Project Completion, Audit, Settlement, and Closeout A. Project Completion. Within ninety (90) calendar days following Project completion or termination by SANDAG, the Grantee agrees to submit a final certification of Project expenses and audit reports, as applicable. B. Audit of Grantee. The Grantee agrees to have financial and compliance audits performed as SANDAG may require. If performed, these financial and compliance audits must comply with the provisions of OMB Circular A -133, dated March 2014, and any further revision or supplement thereto. The Grantee also agrees to obtain any other audits required by SANDAG. The Grantee agrees that these audits will be conducted in accordance with U.S. Government Accountability Office (U.S. GAO) "Generally Accepted Government Auditing Standards." The Grantee agrees that Project closeout will not alter the Grantee's audit responsibilities. Audit costs are allowable Project costs. C. Performance Audit. The Grantee agrees to cooperate with SANDAG or ITOC with regard to any performance audit that is performed on the Project pursuant to the TransNet Ordinance. D. Project Closeout. Project closeout occurs when SANDAG notifies the Grantee that SANDAG has closed the Project, and either forwards the final TransNet Ordinance Assistance payment or acknowledges that the Grantee has remitted the proper refund. The Grantee agrees that Project closeout by SANDAG does not invalidate any continuing requirements imposed by the Agreement or any unmet requirements set forth in a written notification from SANDAG. Section 11. Timely Progress and Right of SANDAG to Terminate A. Grantee shall make diligent and timely progress toward completion of the Project within the timelines set forth in the Project Schedule (Exhibit C) and consistent with Board Policy No. 035. If timely progress is not achieved, SANDAG may review the status of the Project to determine if the funds should be reallocated to another eligible project. Grantee understands and agrees that any failure to make reasonable progress on the Project or violation of the Agreement that endangers substantial performance of the Project shall provide sufficient grounds for SANDAG to terminate the Agreement for the Project. 12 2015 -05 -05 Agenda Packet Page 111 B. Upon written notice, the Grantee agrees that SANDAG may suspend or terminate all or any part of the TransNet Ordinance Assistance to be provided for the Project if the Grantee has violated the terms of this Agreement, or if SANDAG determines that the purpose of the laws or policies authorizing the Project would not be adequately served by the continuation of TransNet Ordinance Assistance for the Project. C. In general, termination of TransNet Ordinance Assistance for the Project will not invalidate obligations properly incurred by the Grantee before the termination date to the extent those obligations cannot be canceled. If, however, SANDAG determines that the Grantee has misused TransNet Ordinance Assistance by failing to make adequate progress, failing to make reasonable and appropriate use of Project property, or failing to comply with the terms of this Agreement, SANDAG reserves the right to require the Grantee to refund the entire amount of TransNet Ordinance Assistance provided for the Project or any lesser amount as SANDAG may determine. D. Expiration of any Project time period established in the Project Schedule will not, by itself, automatically constitute an expiration or termination of this Agreement for the Project, however, Grantee must request and SANDAG may agree to amend the contract if the Project Schedule will not be met. An amendment to the Project Schedule may be made at SANDAG's discretion, consistent with Board Policy No. 035, if Grantee provides documentation that the Project is delayed due to factors external to the control of Grantee. Section 12. Civil Rights The Grantee agrees to comply with all applicable civil rights laws, regulations and policies and shall include the provisions of this Section 12 in each subagreement, lease, third party contract or other legally binding document to perform work funded by this Agreement. Applicable civil rights laws, regulations and policies include, but are not limited to, the following: A. Nondiscrimination. SANDAG implements its programs without regard to income level, disability, race, color, and national origin in compliance with the Americans with Disabilities Act and Title VI of the Civil Rights Act. Grantee shall prohibit discrimination on these grounds, notify the public of their rights under these laws, and utilize a process for addressing complaints of discrimination. Furthermore, Grantee shall make the procedures for filing a complaint available to members of the public and will keep a log of all such complaints. Grantee must notify SANDAG immediately if a complaint is lodged that relates to the Project or program funded by this grant. B. Equal Employment Opportunity. During the performance of this Agreement, Grantee and all of its subcontractors, if any, shall not unlawfully discriminate, harass, or allow harassment, against any employee or applicant for employment because of sex, race, color, ancestry, religious creed, national origin, disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, denial of family and medical care leave, denial of pregnancy disability leave, veteran status, or sexual orientation. Grantee and its subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment. Grantee and its 13 2015 -05 -05 Agenda Packet Page 112 subcontractors shall comply with the provisions of the Fair Employment and Housing Act (California Government Code Section 12900, et seq.) and the applicable regulations promulgated thereunder (California Code of Regulations, Title 2, Section 7285.0, et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing California Government Code Section 12990 (a -f), set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations, are incorporated into this Agreement by this reference and are made a part hereof as if set forth in full. Grantee and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. Section 13. Ownership of Work Product SANDAG shall own any deliverables created in whole or in part for SANDAG's benefit pursuant to the Scope of Work for the Project. The term "deliverables" includes, but is not limited to, all original drawings, reports, photos, and other documents, including detailed calculations and other work product developed for the Project or services performed on the Project. Section 14. Disputes and Venue A. Choice of Law. This Agreement shall be interpreted in accordance with the laws of the State of California. B. Dispute Resolution Process. In the event Grantee has a dispute with SANDAG during the performance of this Agreement, Grantee shall continue to perform unless SANDAG informs Grantee in writing to cease performance. The dispute resolution process for disputes arising under this Agreement shall be as follows: Grantee shall submit a statement of the grounds for the dispute, including all pertinent dates, names of persons involved, and supporting documentation, to SANDAG's Project Manager. The Project Manager and other appropriate SANDAG staff will review the documentation in a timely manner and reply to Grantee within 20 calendar days. Upon receipt of an adverse decision by SANDAG, Grantee may submit a request for reconsideration to SANDAG's Executive Director. The request for reconsideration must be received within 10 calendar days from the postmark date of SANDAG's reply. The Executive Director will respond to the request for reconsideration within 10 working days. The written decision of the Executive Director shall be final. C. Venue. If any action is brought to interpret or enforce any term of this Agreement, the action shall be brought in a state or federal court situated in the County of San Diego, State of California. In the event of any such litigation between the parties, the prevailing party shall be entitled to recover all reasonable costs incurred, including reasonable attorney's fees, litigation and collection expenses, witness fees, and court costs as determined by the court. 14 2015 -05 -05 Agenda Packet Page 113 Section 15. Assignment Grantee shall not assign, sublet, or transfer (whether by assignment or novation) this Agreement or any rights under or interest in this Agreement Section 16. Insurance Grantee shall procure and maintain during the period of performance of this Agreement, and for twelve (12) months following completion, policies of insurance from insurance companies authorized to do business in the State of California or the equivalent types and amounts of self - insurance, as follows: A. General Liability. Combined single limit of $1,000,000 per occurrence and $2,000,000 general aggregate for personal and bodily injury, including death, and broad form property damage. The policy must include an acceptable "Waiver of Transfer Rights of Recovery Against Others Endorsement." The policy must name SANDAG as an additional insured in the endorsement. A deductible or retention may be utilized, subject to approval by SANDAL. B. Automobile Liability. For personal and bodily injury, including death, and property damage in an amount not less than $1,000,000. C. Workers' Compensation and Employer's Liability. Policy must comply with the laws of the State of California. The policy must include an acceptable "Waiver of Right to Recover From Others Endorsement" naming SANDAG as an additional insured. D. Other Requirements. Grantee shall furnish satisfactory proof by one or more certificates (original copies) that it has the foregoing insurance. The insurance shall be provided by an acceptable insurance provider, as determined by SANDAL, which satisfies the following minimum requirements: 1. An insurance carrier qualified to do business in California and maintaining an agent for service of process within the state. Such insurance carrier shall maintain a current A.M. Best rating classification of "A -" or better, and a financial size of "$10 million to $24 million (Class V) or better," or 2. An insurance carrier qualified to do business in California and a policy provision for an agent for service of process in California. Certificates of insurance shall be filed with SANDAG. These policies shall be primary insurance as to SANDAG so that any other coverage held by SANDAG shall not contribute to any loss under Grantee's insurance. Insurance policies shall not be canceled without first giving thirty (30) days advance written notice to SANDAG. For purposes of this notice requirement, any material change in the policy prior to its expiration shall be considered a cancellation. [For federal agencies, the following language will be used in place of the language above: 15 2015 -05 -05 Agenda Packet Page 114 The [name of federal agency] is self- insured. Its employees are compensated for injuries on the job by the Federal Employees' Compensation Act, codified as 5 U.S.C. 8101 et seq. Section 17. Indemnification and Hold Harmless A. Generally. With regard to the Grantee's performance in connection with or incidental to the Project, the Grantee agrees to defend, indemnify, protect, and hold SANDAG and its Board of Directors, agents, officers and employees harmless from and against any and all claims, including, but not limited to, prevailing wages claims against the Project, asserted or established liability for damages or injuries to any person or property, including injury to the Grantee's or its subgrantees' employees, agents, or officers, which arise from or are connected with or are caused or claimed to be caused by the negligent, reckless, or willful acts or omissions of the Grantee and its subgrantees and their agents, officers, or employees, in performing the work or services herein, and a l l expenses of investigating and defending against same, including attorney fees and costs; provided, however, that the Grantee's duty to indemnify and hold harmless shall not include any claims or liability arising from the established sole negligence or willful misconduct of SANDAG, its Board of Directors, agents, officers, or employees. B. Intellectual Property. Upon request by SANDAG, the Grantee agrees to indemnify, save, and hold harmless SANDAG and its Board of Directors, officers, agents, and employees acting within the scope of their official duties against any liability, including costs and expenses, resulting from any willful or intentional violation by the Grantee of proprietary rights, copyrights, or right of privacy, arising out of the publication, translation, reproduction, delivery, use, or disposition of any data furnished under the Project. The Grantee shall not be required to indemnify SANDAG for any such liability caused solely by the wrongful acts of SANDAG employees or agents. Section 18. Independent Contractor A. Status of Grantee. Grantee shall perform the services provided for within this Agreement as an independent contractor, and not as an employee of SANDAG. Grantee shall be under the control of SANDAG as to the result to be accomplished and not the means, and shall consult with SANDAG as provided for in the Scope of Work. The payments made to Grantee pursuant to this Agreement shall be the full and complete compensation to which Grantee is entitled. SANDAG shall not make any federal or state tax withholdings on behalf of Grantee. SANDAG shall not be required to pay any workers' compensation insurance on behalf of Grantee. Grantee agrees to indemnify SANDAG for any tax, retirement contribution, social security, overtime payment, or workers' compensation payment which SANDAG may be required to make on behalf of Grantee or any employee of Grantee for work done under this Agreement. B. Actions on behalf of SANDAG. Except as SANDAG may specify in writing, Grantee shall have no authority, express or implied, to act on behalf of SANDAG in any capacity whatsoever, as an agent or otherwise. Grantee shall have no authority, express or implied, to bind SANDAG or its members, agents, or employees, to any obligation whatsoever, unless expressly provided for in this Agreement. M: 2015 -05 -05 Agenda Packet Page 115 Section 19. Integration This Agreement represents the entire understanding of SANDAG and Grantee as to those matters contained in it. No prior oral or written understanding shall be of any force or effect with respect to those matters covered hereunder. This Agreement may not be modified or altered except in writing, signed by SANDAG and the Grantee. Section 20. Severabi I ity If any provision of this Agreement is determined invalid, the remainder of that Agreement shall not be affected if that remainder would continue to conform to the requirements of applicable laws or regulations. Section 21. Notice Any notice or instrument required to be given or delivered by this Agreement may be given or delivered by depositing the same in any United States Post Office, registered or certified, postage prepaid, addressed to: San Diego Association of Governments 401 B Street, Suite 800 San Diego, CA 92101 Attn: Katie Levy Grantee: [Grantee's Address] Attn: [Grantee Project Manager] and shall be effective upon receipt thereof. Section 22. Signatures The individuals executing this Agreement represent and warrant that they have the legal capacity and authority to do so on behalf of their respective legal entities. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date written above. SAN DIEGO ASSOCIATION [GRANTEE] OF GOVERNMENTS GARY L. GALLEGOS Executive Director 17 [Full name] [Title] 2015 -05 -05 Agenda Packet Page 116 APPROVED AS TO FORM: Office of General Counsel 18 2015 -05 -05 Agenda Packet Page 117 EXHIBIT A SCOPE OF WORK Task # Task Name Task Description Quantifiable Results /Deliverables 1 Name of Task Describe Task List the quantifiable results and deliverables 2 3 4 5 .... Administration 19 2015 -05 -05 Agenda Packet Page 118 EXHIBIT B PROJECT BUDGET Grantee agrees to submit invoices to SANDAG on a quarterly basis within three weeks after the period covering January 1 to March 31; within three weeks after the period covering April 1 to June 30; within three weeks after the period covering July 1 to September 30; and within three weeks after the period covering October 1 to December 31; covering the costs of the work done by Task during that time period. Invoices should include backup material on the matching funds and the requested TransNet funds. 1 Throughout the Project, Matching Funds must be proportionate to Total Project Costs (Grant Request and Matching Funds combined). For example, if a proposed project Year 1 Grant Request is $80,000 and proposed Year 1 Matching Funds are $20,000, the Total Year 1 Project Costs are $100,000. Therefore, the required proportionate matching funds to provide per invoice during Year 1 of the project are 20% (e.g. invoice submitted for $8,000 grant amount reimbursement and $2,000 matching funds submitted). However, if the Year 2 Grant Request is $70,000 and proposed Year 2 Matching Funds are $30,000, while the Total Year 2 Project Costs also are $100,000, the required proportionate matching funds increases per invoice during Year 2 of the project to 30% (e.g. invoice submitted for $7,000 grant amount reimbursement and $3,000 matching funds submitted). Retention will be withheld beyond the ten percent (10 %) retention for each invoice submittal that does not meet the proportionate matching funds requirement. These additional matching funds retained will not be released until the proportionate matching funds are reached for the project to -date. all 2015 -05 -05 Agenda Packet Page 119 Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Total Total Total Task # Task Name Grant Matching Grant Matching Grant Matching Grant Matching Project Amount Funds' Amount Funds' Amount Funds' Amount Funds Cost $ $ 1 $ - $ - $ - $ - $ - $ - $ - $ $ 2 $ - $ - $ - $ - $ - $ - $ - $ $ 3 $ - $ - $ - $ - $ - $ - $ - $ $ 4 $ - $ - $ - $ - $ - $ - $ - $ $ 5 $ - $ - $ - $ - $ - $ - $ - $ .... Administrative $ - $ - $ - $ - $ - $ - $ - $ - $ $ Sub Total $ - $ - $ - $ - $ - $ - $ - Indirect Cost (_ %) $ - $ - $ - $ - $ - $ - $ - $ - $ - TOTAL $ - $ - $ - $ - $ - $ - $ - $ - $ - PERCENTAGE % % % % % % % % % 1 Throughout the Project, Matching Funds must be proportionate to Total Project Costs (Grant Request and Matching Funds combined). For example, if a proposed project Year 1 Grant Request is $80,000 and proposed Year 1 Matching Funds are $20,000, the Total Year 1 Project Costs are $100,000. Therefore, the required proportionate matching funds to provide per invoice during Year 1 of the project are 20% (e.g. invoice submitted for $8,000 grant amount reimbursement and $2,000 matching funds submitted). However, if the Year 2 Grant Request is $70,000 and proposed Year 2 Matching Funds are $30,000, while the Total Year 2 Project Costs also are $100,000, the required proportionate matching funds increases per invoice during Year 2 of the project to 30% (e.g. invoice submitted for $7,000 grant amount reimbursement and $3,000 matching funds submitted). Retention will be withheld beyond the ten percent (10 %) retention for each invoice submittal that does not meet the proportionate matching funds requirement. These additional matching funds retained will not be released until the proportionate matching funds are reached for the project to -date. all 2015 -05 -05 Agenda Packet Page 119 EXHIBIT C PROJECT SCHEDULE Task Months Needed to Task End Task Name Start Date # Complete Task Date " n " Months from 1 " n " Months from NTP NTP M M /DD/YYY " n " Months from 2 " n " Months from NTP NTP M M /DD/YYY " n " Months from 3 " n " Months from NTP NTP M M /DD/YYY " n " Months from 4 " n " Months from NTP NTP M M /DD/YYY " n " Months from 5 " n " Months from NTP NTP M M /DD/YYY " n " Months from ... " n " Months from NTP NTP M M /DD/YYY " n " Months from ... Administration "n" Months from NTP NTP MM /DD/YYY Assumes Notice to Proceed (NTP) is fall 2015. 21 2015 -05 -05 Agenda Packet Page 120 EXHIBIT D BOARD POLICY NO. 035 See Next Page 22 2015 -05 -05 Agenda Packet Page 121 COMPETITIVE GRANT PROGRAM PROCEDURES Applicability and Purpose of Policy BOARD POLICY NO. O35 This Policy applies to the following grant programs administered through SANDAL, whether from TransNet or another source: Smart Growth Incentive Program, Environmental Mitigation Program, Bike and Pedestrian Program, Senior Mini Grant Program, Job Access Reverse Commute, New Freedom, and Section 5310 Elderly & Persons with Disabilities Transportation Program. Nothing in this Policy is intended to supersede federal or state grant rules, regulations, statutes, or contract documents that conflict with the requirements in this Policy. There are never enough government grant funds to pay for all of the projects worthy of funding in the San Diego region. For this reason, SANDAG awards grant funds on a competitive basis that takes the grantees' ability to perform their proposed project on a timely basis into account. SANDAG intends to hold grantees accountable to the project schedules they have proposed in order to ensure fairness in the competitive process and encourage grantees to get their projects implemented quickly so that the public can benefit from the project deliverables as soon as possible. Procedures 1. Project Milestone and Completion Deadlines 1.1. When signing a grant agreement for a competitive program funded and /or administered by SANDAG, grant recipients must agree to the project delivery objectives and schedules in the agreement. In addition, a grantee's proposal must contain a schedule that falls within the following deadlines. Failure to meet the deadlines below may result in revocation of all grant funds not already expended. The final invoice for capital, planning, or operations grants must be submitted prior to the applicable deadline. 1.1.1. Funding for Capital Projects. If the grant will fund a capital project, the project must be completed according to the schedule provided in the grant agreement, but at the latest, any necessary construction contract must be awarded within two years following execution of the grant agreement, and construction must be completed within eighteen months following award of the construction contract. Completion of construction for purposes of this policy shall be when the prime construction contractor is relieved from its maintenance responsibilities. If no construction contract award is necessary, the construction project must be complete within eighteen months following execution of the grant agreement. 1.1.2. Funding for Planning Grants. If the grant will fund planning, the project must be completed according to the schedule provided in the grant agreement, but at the latest, any necessary consultant contract must be awarded within one year following execution of the grant agreement, and the planning project must be complete within two years following award of the consultant contract. Completion of planning for purposes of this policy shall be when grantee approves the final planning project deliverable. If no consultant contract award is necessary, the 2015 -05 -05 Agenda Packet Page 122 planning project must be complete within two years of execution of the grant agreement. 1.1.3 Funding for Operations Grants. If the grant will fund operations, the project must be completed according to the schedule provided in the grant agreement, but at the latest, any necessary services contract for operations must be awarded within one year following execution of the grant agreement, and the operations must commence within six months following award of the operations contract. If no services contract for operations is necessary, the operations project must commence within one year of execution of the grant agreement. 1.1.4 Funding for Equipment or Vehicles Grants. If the grant will fund equipment or vehicles, the project must be completed according to the schedule provided in the grant agreement, but at the latest, any necessary purchase contracts for equipment or vehicles must be awarded within one year following execution of the grant agreement, and use of the equipment or vehicles for the benefit of the public must commence within six months following award of the purchase contract. 2. Project Milestone and Completion Deadline Extensions 2.1. Schedules within grant agreements may include project scopes and schedules that will identify interim milestones in addition to those described in Section 1 of this Policy. Grant recipients may receive extensions on their project schedules of up to six months for good cause. Extensions of up to six months aggregate that would not cause the project to miss a completion deadline in Section 1 may be approved by the SANDAG Executive Director. Extensions beyond six months aggregate or that would cause the project to miss a completion deadline in Section 1 must be approved by the Policy Advisory Committee that has been delegated the necessary authority by the Board. For an extension to be granted under this Section 2, the following conditions must be met: 2.1.1. For extension requests of up to six months, the grantee must request the extension in writing to the SANDAG Program Manager at least two weeks prior to the earliest project schedule milestone deadline for which an extension is being requested. The Executive Director or designee will determine whether the extension should be granted. The Executive Director's action will be reported out to the Board in following month's report of delegated actions. 2.1.2. A grantee seeking an extension must document previous efforts undertaken to maintain the project schedule, explain the reasons for the delay, explain why the delay is unavoidable, and demonstrate an ability to succeed in the extended time frame the grantee proposes. 2.1.3. If the Executive Director denies an extension request under this Section 2, the grantee may appeal within ten business days of receiving the Executive Director's response to the responsible Policy Advisory Committee by sending the appeal to the SANDAG Program Manager. 2.1.4. Extension requests that are rejected by the Policy Advisory Committee will result in termination of the grant agreement and obligation by the grantee to return to SANDAG any unexpended funds within 30 days. Unexpended funds are funds for project costs not incurred prior to rejection of the extension request by the Policy Advisory Committee. KA 2015 -05 -05 Agenda Packet Page 123 3. Project Delays and Extensions in Excess of Six Months 3.1. Requests for extensions in excess of six months, or that will cause a project to miss a completion deadline in Section 1 (including those projects that were already granted extensions by the Executive Director and are again falling behind schedule), will be considered by the Policy Advisory Committee upon request to the SANDAG Program Manager. 3.2 A grantee seeking an extension must document previous efforts undertaken to maintain the project schedule, explain the reasons for the delay, explain why the delay is unavoidable, and demonstrate an ability to succeed in the extended time frame the grantee proposes. The grantee must provide the necessary information to SANDAG staff to place in a report to the Policy Advisory Committee. If sufficient time is available, and the grant utilized TransNet funds, the request will first be taken to the Independent Taxpayer Advisory Committee (ITOC) for a recommendation. The grantee should make a representative available at the meeting to present the information to, and /or answer questions from, the ITOC and Policy Advisory Committee. 3.3 The Policy Advisory Committee will only grant an extension under this Section 3 for extenuating circumstances that the grantee could not have reasonably foreseen. 4. Resolution and Execution of the Grant Agreement 4.1 Two weeks prior to the review by the Policy Advisory Committee of the proposed grants, prospective grantees must submit a resolution from their authorized governing body that includes the provisions in this Subsection 4.1. Failure to provide a resolution that meets the requirements in this Subsection 4.1 will result in rejection of the application and the application will be dropped from consideration with funding going to the next project as scored by the evaluation committee. In order to assist grantees in meeting this resolution deadline, when SANDAG issues the call for projects it will allow at least 90 days for grant application submission. 4.1.1 Grantee governing body commits to providing the amount of matching funds set forth in the grant application. 4.1.2 Grantee governing body authorizes staff to accept the grant funding and execute a grant agreement if an award is made by SANDAG. 4.2 Grantee's authorized representative must execute the grant agreement within 45 days from the date SANDAG presents the grant agreement to the prospective grantee for execution. Failure to meet the requirements in this Subsection 4.2 may result in revocation of the grant award. 5. Increased Availability of Funding Under this Policy 5.1. Grant funds made available as a result of the procedures in this Policy may be awarded to the next project on the recommended project priority list from the most recent project selection process, or may be added to the funds available for the next project funding cycle, at the responsible Policy Advisory Committee's discretion. Any project that loses funding due to failure to meet the deadlines specified in this Policy may be resubmitted to compete for funding in a future call for grant applications. Adopted: January 2010 3 2015 -05 -05 Agenda Packet Page 124 EXHIBIT E SAMPLE INVOICE TRAIVSNET EN VIRON M E NTA L M I T I �� AT I -) N P P)G RAM LAN G M ANAGEM EDIT GRANT PROGRAM ITEMIZED INVGIC E Grant Contract Number: To- Katie Leer Project Name- SANDAL 401 "B^ Street, Suite 8DO Grant: Invoice Number: San Diego, CA 921 D 1 -4231 r'ROM To From: Bill i ng Period_ nvoice Date: Total Current Expendlitunes: PROJECT TASK EXPECTED IVLATC HIND FUNDS PREVIOU S EXPENDED MATCHING FUNDS CURRENT EXPENDED MATCHING FUNDS THIS PERIGD EXPENDED MATCH IN G FUNDS TO DATE REMAINING MATCH I NG FUNDS BEGINNING GRANT BALANCE PREVIO US GRANT EXPENDITURE S CURRENT GRANT EXPENDITURES THIS PERIOD GRANT E]LPEN Drr URE To ❑iATE REMAINING GRANT BALANCE 1 $ - $ $ S - S - S - $ $ - $ - S - 2 $ - $ $ S S - $ - $ - $ - $ - S - 3 $ - $ $ S S - $ - $ - $ - $ - S - 4 $ - $ $ S S - $ - $ $ - $ - S - 5 - $ $ S S - - $ $ - $ - S - 6 S - $ $ S S - - $ $ - - S - f S - $ $ - S - S - - $ - $ - }$ $ - S - S - $ $ S S - - $ - $ - } # - S - S - $ $ - S - S - - $ - $ - $ - S - S - $ - $ - S - S - - $ - $ - $ - S - S - $ - $ - S - S - - $ - $ - $ - S - Indirect i,ast O•� fIF anvi S - $ $ - S - S - $ - $ - $ - $ - S - Tota I: S - $ $ S S - $ - $ - $ - $ - S - Total Current Expendlitunes: S 1 I % Retention VV ithheld 5 Total ArnourYt Du-e this Invoice: S CERTIFICATION OF GRANTEE I hereby certify that the above costs were incurred in perFermanee of the wort{ required under the arrangement of the grant and are consisent with the amounts evide need by supporting documents and e�penditures. B io nature Summary of Deliverable;} Prided with Invoice We Printed Name and Title Date 2015 -05 -05 Agenda Packet Page 125 EXHIBIT F SAMPLE RESOLUTION RESOLUTION NO. Insert Text AUTHORIZING AN APPLICATION FOR ENVIRONMENTAL MITIGATION LAND MANAGEMENT GRANT PROGRAM FUNDS TO THE SAN DIEGO ASSOCIATION OF GOVERNMENTS FOR PROJECT NAME, COMMITTING TO PROVIDE MATCHING FUNDS, and AUTHORIZING STAFF TO ACCEPT GRANT FUNDS AND EXECUTE GRANT AGREEMENT WHEREAS, in November 2004, the voters of San Diego County approved SANDAG Ordinance 04 -01, which extended the TransNet �/2 cent sales and use tax through 2048 (TransNet Ordinance); and WHEREAS, the TransNet Extension Ordinance contains provisions for the creation of an Environmental Mitigation Program (EMP), which began being funded by the TransNet Ordinance on April 1, 2008; and WHEREAS, in Month Day, Year, SANDAG issued its seventh cycle Call for Projects from entities wishing to apply for a portion of the EMP Regional Habitat Conservation grant funds for use on environmental land management projects meeting certain criteria; and WHEREAS, Name of Organization wishes to receive $Insert Amount in EMP Regional Habitat Conservation grant funds for the following project: Project Name; and WHEREAS, Name of Organization understands that the EMP Regional Habitat Conservation grant funding is fixed at the programmed amount, and therefore project cost increases that exceed the grant awarded will be the sole responsibility of the grantee. NOW, THEREFORE, BE IT RESOLVED by Governing Board Name that Name of Organization is authorized to submit an application to SANDAG for Name of the Grant Program funding in the amount of $ rnsert Amount for Project Name; and BE IT FURTHER RESOLVED that, if a grant award is made by SANDAG to fund Project Name, Governing Board commits to providing $Insert Amount Even if Zero of matching funds and /or in -kind contributions as set forth in its grant application; authorizes Name of Organization staff to accept the grant funds; and authorizes execution of the Grant Agreement included in the seventh cycle Call for Projects with SANDAG without exceptions. PASSED AND ADOPTED by Name of Organization's Governing Board this Insert Date of Insert Month and Yea r. Ayes: N ayes: Absent/Abstention: Signature of Governing Board's Chair /Director ATTEST: Clerk or Secretary of the Governing Board of Name of Organization 27 2015 -05 -05 Agenda Packet Page 126 NOTE TO GRANT APPLICANT: THIS SAMPLE RESOLUTION SATISFIES THE REQUIREMENTS OF SANDAG BOARD POLICY No. 035, SECTIONS 4.1.1 AND 4.1.2. FAILURE TO SUBMIT A RESOLUTION THAT INCLUDES ALL OF THE PROVISIONS ABOVE, INCLUDING THOSE FROM SECTION 4.1.1 AND 4.1.2 OF SANDAL'S BOARD POLICY No. 035, WILL RESULT IN REJECTION OF THE APPLICATION AND THE APPLICATION WILL BE DROPPED FROM CONSIDERATION WITH FUNDING GOING TO THE NEXT PROJECT AS SCORED BY THE EVALUATION COMMITTEE. BOARD LETTERS, MINUTE ORDERS, MEETING MINUTES OR ANY OTHER DOCUMENT THAT IS NOT A RESOLUTION, WILL NOT SATISFY SECTION 4.1.1 AND 4.1.2 OF BOARD POLICY No. 035. PLEASE DELETE THESE THREE HIGHLIGHTED PARAGRAPHS BEFORE PRESENTING THIS RESOLUTION TO YOUR GOVERNING BODY. THANK YOU. 28 2015 -05 -05 Agenda Packet Page 127 (:LANDA_L CALL FOR PROJECTS FOR THE SEVENTH CYCLE OF THE TransNet ENVIRONMENTAL MITIGATION PROGRAM (EMP) LAND MANAGEMENT GRANT PROGRAM GRANT APPLICATION FORM Grant Application Form and required supplementary materials (hereafter referred to as "proposal ") cannot exceed twelve (12) pages) Applicant Name: City of Chula Vista Address: 276 Fourth Avenue, Chula Vista, CA 91910 Phone and Email Address: (619) 476 -2329 / glaube @chulavistaca.gov Name of Property: Otay Ranch Preserve Management Area (PMA) General Location: Otay River Valley and Salt Creek (MSP MU3) Jurisdiction: City of Chula Vista Total Acres: 2,742 acres (portion of Otay Ranch PMA within Chula Vista) Estimated Acres Requiring Management: 10 acres Owner(s) of Property: City of Chula Vista Land manager(s) of property (include name(s)): The Otay Ranch PMA is jointly managed by the City of Chula Vista and County of San Diego as the Preserve /Owner Manger. Proposal is submitted for consideration under the following eligible activity area (must identify one eligible activity that best characterizes the proposed project): ® Maintenance and Enhancement of Extant Populations of Management Strategic Plan for Conserved Lands in Western San Diego County (MSP) Species and their Habitats ❑ Threat Reduction to MSP Species and their Habitats from Invasive Species and Wildfires ❑ Habitat Maintenance, Access Control /Management, and Volunteer Coordination Brief Project Summary that includes your primary goal and objectives (200-word maximum) The goal of the project is to increase the amount of suitable habitat and improve connectivity for the coastal cactus wren (MSP Category SO [species whose persistence of one or more significant occurrences in the MSP area is at high risk of loss without immediate management action above and beyond that of daily maintenance activities]) along Otay River Valley and Salt Creek through restoration and enhancement of degraded habitat areas. This program addresses the immediate needs of coastal cactus wren within Otay River Valley and Salt Creek where loss and degradation of existing wren habitat has occurred due to historical cattle grazing, increase of invasive plant species, unauthorized off -road vehicle use, drought and vegetation succession processes. Activities included in this program include invasive species control with follow -up herbicide treatments, shrub thinning, collecting and planting coast cholla and coast prickly pear cuttings, native grass and forb seed collection and redistribution, vegetation monitoring, and focused cactus wren monitoring. The methodologies use in conjunction with this proposal are similar to those used to successfully restore 27 acres of low - quality coastal cactus wren habitat located in Wolf Canyon (Otay Ranch Preserve), 9 acres in Rice Canyon (EMP Grant #5001130), and 15 acres in lower Salt Creek (EMP Grant #5001970). This project is consistent with the management efforts and goals and objectives prescribed in SDMMPs Management Strategic Plan (MSP Vol. 2, Table 2 -2.9). CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 1 2015 -05 -05 Agenda Packet Page 128 Quantify Expected Results add bullets as necessary) • Restore and enhance degraded habitat for coastal cactus wrens within approximately 3 acres of Otay River Valley (Otay Ranch Preserve — Millenia Parcels) and 7 acres of Salt Creek (Otay Ranch Preserve — Salt Creek Parcels) • Reduce the risk of cactus wren habitat loss from fires • Reduce weed infestation • Remove invasive seed sources that can migrate to adjacent sensitive habitat areas • Improve connectivity within an existing avian wildlife corridor by complementing similar coastal cactus wren projects in the vicinity: County of San Diego (EMP Grant), City of Chula Vista (EMP Grant), Caltrans (Johnson Canyon Mitigation Site) Brief Description of dedicated staff and/or consultants that would work on Project (200 -word maximum) Chula Vista MSCP staff will be utilized to administer the overall implementation of the project in accordance with the terms and conditions specified in SANDAG's standard contract. A qualified biological consultant, familiar with the Chula Vista MSCP Subarea Plan, Otay Ranch Resource Management Plan, and the SDMMP MSP will be retained by the City to perform the restoration and enhancement activities described in Exhibit A of this proposal. To be considered for this project, prospective biological consultants shall demonstrate to City MSCP staff under the direct oversight of the City's Development Services Director that they possess the necessary biological technical services to successfully implement the City's coastal cactus wren habitat restoration project detailed in Exhibit A of this grant proposal. Funding Needs Summary 1. Please indicate how much funding is being requested from SANDAG and any matching funding proposed: Budget Item Requested Funding Amount Proposed Matching Funds Description Personnel Expenses Staff $0 $0 Includes staff time for non - administrative work on the project Personnel Administrative Expenses $0 $3,744 Includes all staff time to administer the contract Consultant Expenses $189,836 $0 Includes all costs for consultant services Other Direct Expenses $0 $0 Includes all equipment, supplies, mileage, etc. Indirect Costs' $0 $0 All indirect charges (e.g., overhead) on the project, if any. Totals $189,836 $3,744 *if applicable 2. Are there matching funds available? M Yes [:] No If yes, how are the matching funds assured (100 -word maximum)? The City will contribute to the project through the use of in -kind resources, more specifically, through the use of City staff time. City staff will be utilized to implement the proposed project, public outreach, and to administer consultant contracts. City staff time for this project, and all MSCP related projects, is assured due to the City's obligation to implement the provisions of the Chula Vista MSCP Subarea Plan pursuant to the Implementing Agreement between the Wildlife Agencies and the City of Chula Vista. PROJECT PROPOSAL The proposal will include (A) the purpose of the project, (B) the scope of work by tasks, (C) the proposed budget, including matching funds, by task, and (D) a schedule for each task. Applicants must clearly identify their proposed tasks in the scope of work, funding requested for 3 Indirect Costs are only allowable if: (1) applicant has an indirect cost allocation audit approved by a qualified independent auditor or (2) the applicant's proposed method for allocating indirect costs is submitted with the proposal in accordance with OMB guidelines and approved by SANDAG. Indirect costs will not be reimbursed until one of the two conditions above are satisfied and indirect cost allocation plans must be renewed annually. CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 2 2015 -05 -05 Agenda Packet Page 129 each task (please identify staff hours and cost separately from consultant costs), start and end dates of the tasks, and deliverables. Applicants are encouraged to identify phasing and prioritization of tasks in their proposal in case full funding for the project is not available. A. Project Purpose Address the following in the proposal. 1. Describe the proposed management activity(ies) and how it relates to the Management Strategic Plan for Conserved Lands in Western San Die.. o County (MSP). Is there current management occurring or has past management occurred (please describe If the proposed management activity will continue or expand on previous efforts funded by TransNet, please describe how it will be coordinated. If the proposed management activity is based on the results from past field inspections of the species occurrence, describe the conditions and management needs identified and whether or not the data has been provided to the SDMMP. If implementing fire management actions, describe the management technique being used and whether a fire plan currently exists. The City is proposing to implement a multi -year species- specific management program focused on restoring and enhancing approximately 10 acres of degraded habitat for the coastal cactus wren, a Covered Species under the City's MSCP Subarea Plan and a listed MSP sensitive species (Category SO). This program addresses the immediate needs of the coastal cactus wren within the Otay River Valley and Salt Creek where loss and degradation of existing coastal cactus wren habitat has occurred due to historical cattle grazing, increase of invasive plant species, unauthorized off -road vehicle use, drought, and vegetation succession processes. The proposed 3 -acre restoration area within Otay River Valley occurs within the Otay Ranch Preserve - Millenia Parcels along the western edge of Johnson Canyon within sight of habitat occupied by coastal cactus wren. In spring 2014, one cactus wren was observed within the Millenia Parcels near the proposed 3 -acre restoration area. The proposed 7 -acre restoration area within Salt Creek occurs within and adjacent to habitat occupied by coastal cactus wren. Activities included in this grant proposal that will benefit sensitive vegetation communities and species include intensive exotic species control with follow -up herbicide treatments, collecting and planting coast cholla and coast prickly pear cuttings to expand habitat, native grass and forb seed collection and redistribution, vegetation monitoring, and focused monitoring surveys for the coastal cactus wren in the treatment areas. The methodologies used in conjunction with this proposal are similar to those used to successfully restore 27 acres of low- quality coastal cactus wren habitat located in Wolf Canyon (Otay Ranch Preserve) that have enabled coastal cactus wrens to move into and begin nesting in areas formerly dominated by weeds. Currently, 15 acres of degraded coastal cactus wren habitat in Salt Creek is being restored using the same methodology and will be completed in August 2015 (Chula Vista /SANDAG Agreement #5001970, refer to Figure 1). 2. Which MSP species and their habitats will benefit from the proposed management activity? Which specific MSP objective(s) and action(s) will be implemented (please reference the relevant MSP volume and page number)? Name the specific MSP species occurrence(s) to benefit from the management activity, if applicable. This project proposes maritime succulent scrub habitat restoration and enhancement activities within Otay River Valley and Salt Creek to improve connectivity, increase suitable habitat patches, reduce the risk of fire, and reduce the risk of extirpation or a population bottleneck of coastal cactus wren within this area. The population of coastal cactus wrens within the Otay River Valley and Salt Creek are part of the Otay River genetic cluster which has been identified by the MSP as being at high risk of genetic diversity loss (MSP Vol. 2, page 2 -157 and Vol. 2 Table 2 -2.9). 3. Is the proposed project within the MSP area (MSPA)? In which Management Unit (MU) is the project located? The proposed project is located within MU3. 4. Describe the stressors and /or threats to the MSP species and their habitats in the project area that will be addressed through implementation of this project proposal. Recent site reconnaissance performed in conjunction with this grant proposal identified the presence of several invasive species within the project area including annual grasses and forbs, such as bromes, wild oats, ryegrass, filaree, and black mustard. These invasive species compete for light and water that would otherwise support existing coast cholla patches. In addition, native shrubs such as lemonadeberry, are also capable of outcompeting cholla and over time may dominate areas formerly occupied by coast cholla. At the end of the growing season, these non - natives dry out and provide potential fuel for wildfires. Combined with native shrubs, this standing biomass may increase the intensity of future fires around coast cholla patches. If fires are of sufficient heat intensity, coast chollas may be killed or severely damaged. If that occurs, recovery of the coast cholla patches may not be possible or will take many years without management intervention. After the 2003 and 2007 wildfires, regional populations of coastal cactus wrens have severely declined due to lack of suitable nesting and foraging habitat. Compounding the threats associated with invasive species and wildfires, past disturbance of the area (i.e., off - highway vehicle use and historical grazing) have also reduced the diversity of native plants, including fruit bearing species such as prickly pear cactus that wrens depend on for food during the late summer and fall when insect populations are lower. In order to increase the diversity and abundance of insects for cactus wrens, native grass and forb seed will be collected from the surrounding preserve and redistributed within or adjacent to the restoration areas. Suitable species for collection and redistribution include, but are not CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 3 2015 -05 -05 Agenda Packet Page 130 limited to chia (Salvia columbariae), golden tarplant (Deinandra fasciculata), common goldenfields (Lasthenia gracilis), cryptantha (Cryptantha sp.), littleseed muhly (Muhlenbergia microsperma), foothill needlegrass (Stipa lepida), and canchelagua (Zeltnera venusta) . 5. Describe the management techniques proposed, including whether they have been previously used successfully and where. Are there any negative effects to MSP and other sensitive species and their habitats that could result from the proposed management action? The methods outlined in this scope of work are similar to those used to restore 27 acres of highly degraded cactus wren habitat in Wolf Canyon, Otay Ranch Preserve. The success of that project has enabled cactus wrens to move into and begin nesting in the restoration area formerly dominated by weeds. Consistent with the successful efforts in Wolf Canyon, the methods proposed though this program involve intensive removal of invasive species, herbicide treatment, collection and dispersal of coast cholla cuttings, and routine maintenance. The potential restoration and enhancement areas within Salt Creek are similar to the pre- restoration conditions located within Wolf Canyon and, based on previous biological surveys, focus on areas historically known to be occupied by coastal cactus wren. As illustrated on Figure 1, suitable restoration /enhancement areas identified for this grant proposal are located immediately adjacent to each other, which will facilitate dispersal of birds between restored and existing habitat patches. This project is also consistent with the management efforts prescribed in the City's MSCP Subarea Plan and Otay Ranch RMP. The City's MSCP Subarea Plan has been prepared to meet the requirements of the NCCP and serves to implement the San Diego County MSCP Subregional Plan for the regional preservation of natural vegetation communities. Implementation of City's MSCP Subarea Plan and Otay Ranch RMP will ensure that the biological value of the Preserve is maintained and protected in perpetuity. To ensure no negative effects to coastal cactus wren occur, all use of weed whips and shrub thinning will be done outside of the breeding season (i.e., February 15th through August 15th) . Additionally, the project biologist will clearly flag shrubs intended for removal prior to implementation and will monitor the thinning work to minimize impacts to adjacent sensitive species and vegetation communities. What strategic approach will be used to ensure the successful, long -term outcome of the proposed project (e.g. upstream exotic removal prior to downstream, future on -going maintenance)? Which adjacent conserved lands will not be included and why? The scope of work for this project includes pre - implementation monitoring such as delineation of the areas for restoration and enhancement both as GIS data /map and in the field. Survey data collected between 2010 and 2015 will be used to establish baseline conditions for coastal cactus wren. Focused coastal cactus wren surveys will be performed annually in the spring to assess wildlife use of the sites, weed control and coast cholla planting efforts. In addition, repeat photos will be taken each year to provide a visual record of changes in the density and distribution of coast cholla patches. Restoration and enhancement will begin by thinning areas dominated by non - native annuals by dethatching. Dethatching includes cutting dried weedy material and removing it from the site. Re- growth of non - native annuals will also be treated with herbicide prior to seed set. Selected shrubs will also be cut and removed around existing cholla patches of nesting size to reduce fire risk and to increase openings in maritime succulent scrub habitat for use by foraging cactus wren and other wildlife. Immediately after cutting large shrubs the stumps will be treated with herbicide (garlon and /or glyphosate) to prevent regrowth. Coast cholla cuttings within the immediate area will be collected and planted in newly opened areas. Where feasible, native brush generated from thinning efforts will be used to close unauthorized trails and to create additional wildlife habitat in degraded areas. The enhancement sites will be maintained, monitored, and reported on over a 3 -year period. Maintenance and monitoring activities that will be performed over the 3 -year program include: follow -up weed control, repeat photographs from the established photo point locations, focused cactus wren surveys, and ground cover estimates using the releve method. Following the initial 3 -year establishment period, long -term management of the site will be the responsibility of the Otay Ranch Preserve /Owner Manger (POM). Funding for the long -term maintenance is secured through an existing Community Facilities District (CFD). The City's proposal is in -line with the recovery strategies identified in SDMMPs MSP MSP (Vol. 2, Table 2 -2.9) and the ongoing efforts promoted through the ad -hoc "cactus wren recovery team" comprised of representatives from each of the Southern California coastal counties, Wildlife Agencies, and science advisory groups. In addition, the City's proposal will continue and expand upon similar coastal cactus wren recovery efforts initiated by the City of Chula Vista (EMP Grant 5001970 ending summer 2015) and the County of San Diego's Parks and Recreation Department EMP Grant which ended in the summer of 2014). Figure 1 identifies the location of the areas associated with previous EMP grant efforts relative to the potential restoration locations proposed through this grant proposal. It is important to note that there will be no overlap or duplicative efforts expended between this new proposal and previously approved EMP grants. The combined results of these efforts are essential for the prolongation of the coastal cactus wren populations and would reduce the risk of potential extirpation of this species. Adjacent lands not selected for this project include: Preserve areas under private ownership to the west; Chula Vista owned and managed Preserve areas to the North; the Otay Lakes Reservoir and Water Treatment Facility to the east; a state prison and CalTrans mitigation site (Lone Star) to the south. The open space lands located to the west are associated with the Otay Ranch Preserve; however, they are under private ownership and have not been yet been formally dedicated into the City's preserve CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 4 2015 -05 -05 Agenda Packet Page 131 system. Until these lands are conveyed, the property owner is responsible for maintaining the integrity of existing resources. In light of this, the City cannot guarantee post -grant maintenance and monitoring within private lands until those areas have been formally dedicated in fee. Open Space Preserve areas to the north were not selected to avoid potential overlap with an on -going County of San Diego /SANDAG cactus wren habitat restoration grant. Areas to the immediate east and south were not selected due to lack of suitable habitat and /or development (i.e., Otay Lakes Reservoir and Water Treatment Facility and state prison, respectively). 7. What are the goals and objectives for the proposed project? What criteria /metrics will be used to measure success? If applicable, what quantitative monitoring data will be collected to evaluate success? Who will be collecting the monitoring data and what are their qualifications? The proposed project implements specific SDMMP MSP MU3 goals and objectives for cactus wren populations by increasing coast cholla patch sizes, density and connectivity within portions of the Salt Creek and Otay River Valley. The population of coastal cactus wrens within Salt Creek and the Otay River Valley are part of the Otay River genetic cluster which is a core population and high priority for management. This will be accomplished through the selective thinning of native shrubs and exotic annuals that are directly competing with coast cholla to the detriment of cactus wren populations, intensive follow -up weed treatment, cactus cutting and planting, and native grass and forb seed redistribution. Focused surveys for the coastal cactus wren will be conducted annually in the spring to assess wildlife use of the enhancement areas. Annual estimates of shrub and weed cover and density of coast cholla will be conducted using the releve method. Repeat photographs will be taken annually to provide a visual record of changes in the density and distribution of coast cholla patches. The consulting biologist will collect the data and will have experience in both vegetation sampling and coastal cactus wren monitoring. 8. How would the proposed project involve public outreach /public participation, volunteers and /or community events to highlight the land management activities being funded and promote awareness of the grant- funded project? Please quantify your response as much as possible. The City would inform and promote the conservation efforts funded through this project through presentations to City Council and local community groups including the Otay River Valley Park Citizens Advisory Committee (CAC). Through these meetings MSCP staff would discuss restoration and enhancement methodologies, conservation techniques, and the results of our active management efforts in an effort to provide meaningful educational information to the public about the importance of habitat conservation and how it adds to their quality of life. This project would provide public outreach through partnership with the California Native Plant Society (CNPS). In year 1, the project biologist will partner with the CNPS Vegetation Committee to host a training for CNPS volunteers to learn vegetation surveying using the releve method within maritime succulent scrub habitat. Through this training, CNPS volunteers will gather baseline vegetation data prior to restoration and enhancement activities. 9. How will the applicant manage the data collected? What software will be used to house the data? Who will be responsible for compiling and transferring the data to SANDAG? Who will be preparing the required quarterly, final, and all other reports? Data will be collected on GPS units, compiled using ArcGIS, and submitted to SanBIOS by a qualified biologist. The City will prepare and submit quarterly progress reports to SANDAG as well as transfer data to SANDAG. 10. Has the proposed project received TransNet EMP funds previously? If so, what was accomplished with the funds and why are additional funds being requested? No prior EMP funds have been allocated to this specific project. 11. Is the proposed activity being done on land that was previously set aside as mitigation? If yes, please elaborate. Areas selected for this project are all located within the Otay Ranch Preserve. The Otay Ranch Preserve is an 11,375 -acre habitat conservation area established by the Otay Ranch General Development Plan and associated Phase 1 Resource Management Plan. CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 2015 -05 -05 Agenda Packet Page 132 B. Scope of Work by Task Please break down the proposal into discrete tasks and include a task name, description of each task, quantifiable expected results, and discrete deliverables for each task. Note: make sure to list tasks for quarterly reporting on the status of the grant project and a final report on the outcome of the grant project. The applicant should choose one of the three eligible activities, described in the call for projects, that best characterizes their project for consideration under this grant program and list tasks that further the objectives of the selected activity. You may add or subtract rows as needed. Exhibit A— Proposed Project Scope of Work Task # Task Name Task Description Quantifiable Results /Deliverables Implementation and Maintenance tasks will include Implementation and restoration activities for the implementation and 1a -d Maintenance maintenance phases of this project, including site See implementing subtasks below. preparation, cactus collection and planting, seed collection and redistribution, and follow -up maintenance. Based on the results of the pre - implementation monitoring, dethatching and /or shrub thinning shall Dethatching of non - natives and shrub 1a Site Preparation occur in areas dominated by non - native annuals and /or thinning will remove biomass that will native shrubs where appropriate. Dethatched plant reduce the risk of fire. material will be raked up and composted on site. Cactus Collection and Collect coast cholla and coast prickly pear cuttings from Planting of coast cholla and prickly pear 1 b Planting adjacent Preserve areas and plant in newly dethatched will increase available habitat for coastal areas and existing open areas. cactus wrens. Seed Collection and Native grass and forb seed shall be collected from the Seed redistribution will increase native 1c Redistribution adjacent Preserve areas and redistributed within the cover that support insect prey items for restoration areas. coastal cactus wren. Newly germinated weeds will be controlled using Follow -up weed control will reduce non- 1d Follow -up Maintenance glyphosate prior to seed set. native cover and competition with native species for water and light. Project Monitoring tasks will include all monitoring 2a -e Project Monitoring activities including pre - implementation monitoring, See implementing subtasks below. focused coastal cactus wren surveys, and follow -up vegetation monitoring. Prior to implementation, the project biologist shall conduct a field assessment within the project area to confirm areas best suited for restoration and /or The results of the pre - implementation Pre - implementation enhancement. Areas best suited for restoration include monitoring will be used in the restoration 2a Monitoring (Field open areas with lower shrub cover located adjacent to site selection process to restore as much Assessment) existing nesting size coast cholla patches. In addition, cactus wren habitat as possible with the new patches of cholla will be created nearby existing available funding. patches to produce more nesting sized plants over the long-term. Prior to initiating vegetation weeding /thinning activities, Pre - implementation a qualified biologist will determine which habitat The results of the pre- implementation 2b Monitoring (Cactus Wren patches are occupied by coastal cactus wrens in the survey will provide a baseline condition to Survey) specific habitat patches identified for restoration and compare to the cactus wren usage at the enhancement. Locations of wrens and their nests will end of the three -year restoration program. be recorded using a GPS. Permanent photo points will be established at each The results of the pre- implementation restoration and enhancement area to document weed photo monitoring will be used a visual 2c Pre - implementation control and coast cholla planting efforts. Photos will be baseline to compare to the site conditions Monitoring (Photo Monitoring) taken annually from the established photo points to the end of the three -year restoration provide a visual record of changes in the density and distribution of shrubs and coast cholla patches program. Focused surveys for the coastal Cactus Wren will be Focused surveys for the coastal Cactus 2d Focused Coastal Cactus performed annually to assess wildlife use of the Wren will be performed detect changes in Wren Surveys restoration and enhancement areas. cactus wren use of the restoration and enhancement areas. 2e Follow -up Vegetation Vegetation cover will be estimated using the releve Monitoring method. Vegetation monitoring will be conducted CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 2015 -05 -05 Agenda Packet Page 133 C. Budget by Task Please include a specific budget for each task described in the Scope of Work (section B above). This should include both requested SANDAG funds and any matching funds proposed. If matching funds are proposed, please distribute the match commitment proportionately'. For projects requesting funding for more than one year, please indicate the requested funding and match for each year. Applicants are encouraged to identify phasing in their proposal in case full funding for the project is not available. You may add or subtract rows and columns as needed. This grant program is intended to fund existing gaps of land management and will not cover on -going annual costs within applicant's organization. CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 2015 -05 -05 Agenda Packet Page 134 annually to assess changes in the native and non - native cover during the three - year project Reporting tasks will include project deliverables such as quarterly progress reports, annual reports, and the final 3a -c Reporting report. Reporting periods /submittals will coincide with 's See implementing subtasks below. SANDAG required quarterly invoice timeframes and will summarize enhancement efforts and monitoring results, as described in the deliverables. Quarterly progress reports will be prepared and Three quarterly progress reports will be 3a Quarterly Reports submitted to SANDAG to document enhancement submitted that provide a status update for activities. each task performed each year Annual reports will summarize enhancement efforts and An annual report will be prepared that monitoring results (Annual Report will also serve as the summarizes the results of the maintenance and monitoring tasks 3b Annual Reports fourth quarterly progress report). The report will include performed each year. The annual report management recommendations for the following will include representative photos of the season. work performed. The final report (Year 3) will discuss monitoring results The final report (Year 3) will discuss and will include a discussion of future management maintenance and monitoring results. The needs for coastal cactus wren in the restoration and final report will also include a discussion 3c Final Report (Year 3) enhancement areas as well as the surrounding of future management needs for coastal Preserve. The Final Report will also serve as the fourth cactus wren in the restoration and quarterly progress report and annual report for year 3 of enhancement areas as well as the the project. surrounding Preserve. This task will include miscellaneous consultant This task budget will allow for the expenses associated with herbicide, a truck mounted purchase of herbicide for controlling non- skid sprayer rental for applying herbicide, Trimble GPS natives. The GPS equipment will be used 4 Misc. Consultant Expenses rental, and printing. The herbicide and equipment for mapping restoration areas and required for weed treatment and shrub thinning as sensitive species locations used in the described in Tasks la and 1d. GPS and printing as annual reports. described in Tasks 2a -e. Matching funds will be used to: ■Coordinate with CNPS. City of Chula Vista Administration tasks will include a ■ Update the City's MSCP web page. 5 City of Chula Vista variety of coordination and administration tasks to be ■Participate in local community group Administration completed by the City of Chula Vista throughout the meetings. duration of the project. ■ Oversee the biological contractor. ■ Review and submit quarterly reports. Contract administration /invoice review. C. Budget by Task Please include a specific budget for each task described in the Scope of Work (section B above). This should include both requested SANDAG funds and any matching funds proposed. If matching funds are proposed, please distribute the match commitment proportionately'. For projects requesting funding for more than one year, please indicate the requested funding and match for each year. Applicants are encouraged to identify phasing in their proposal in case full funding for the project is not available. You may add or subtract rows and columns as needed. This grant program is intended to fund existing gaps of land management and will not cover on -going annual costs within applicant's organization. CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 2015 -05 -05 Agenda Packet Page 134 Exhibit B - Proposed Project Budget Task #/Task Name Year 1 Year 1 Year 2 Year 2 Year 3 Year 3 Total Total Total Grant Matching Grant Matching Grant Matching Grant Matching Project la-d Implementation Request $75617 Funds $0 Request ,•, Funds Request • Funds Request Funds Cost and Maintenance 1a: Site Preparation $13,673 $0 $0 $0 $0 $0 $13,673 $0 $13,673 1b: Cactus Collection $25,635 $0 $0 $0 $0 $0 $25,635 $0 $25,635 and Planting 1c: Seed Collection and $4,719 $0 $4,719 $0 $2,944 $0 $12,382 $0 $12,382 Redistribution 1d: Follow -up Maintenance 2a-e: Project $31,590 $0 $25,775 $0 $22,225 $0 $79,590 $0 $79,590 Monitoring 2a: Pre - implementation $11 i ,, i ,, i i $23812 Monitoring (Field $4,176 $0 $0 $0 $0 $0 $4,176 $0 $4,176 Assessment) 2b: Pre - implementation Monitoring (Cactus $1,075 $0 $0 $0 $0 $0 $1,075 $0 $1,075 Wren Survey) 2c: Pre - implementation Monitoring (Photo $2,547 $0 $2,547 $0 $2,547 $0 $7,641 $0 $7,641 Monitoring) 2d: Focused Coastal $1,075 $0 $1,075 $0 $1,075 $0 $3,225 $0 $3,225 Cactus Wren Surveys 2e: Follow -up $2,565 $2,565 $2,565 $7,695 $0 $7,695 Vegetation Monitoring 3a: Quarterly Reports $2,046 $0 $2,046 $0 $2,046 $0 $6,138 $0 $6,138 3b: Annual Reports $7,942 $0 $7,942 $0 $0 $0 $15,884 $0 $15,884 3c: Final Report 4: Misc. Consultant Expenses $0 $1 ii $0 ,i $0 ii $0 ,i $8,822 ii $0 ,i $8,822 iii $0 ,i $8,822 iii Administration Sub Total $98,343 ,. $1,248 $47,969 ,. $1,248 $43,524 ,. $1,248 $189,836 $3,744 $193,580 Indirect Cost (_ %) $0 $0 $0 $0 $0 $0 $0 $0 $0 TOTAL $98,343 $1,248 $47,969 $1,248 $43,524 $1,248 $189,836 $3,744 $193,580 Project Schedule Please include start and end dates relative to the anticipated Notice to Proceed (assumes fall 2015) for each task described in the Scope of Work (section B above). Please list tasks for quarterly reporting on the status of the grant project and a final report on the outcome of the grant project. You may add or subtract rows as needed. CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 2015 -05 -05 Agenda Packet Page 135 Exhibit C - Proposed Project Schedule (Assumes 912115 NTP) Notes: Please explain why and how much additional time would be needed in the event of any delays due to NTP being provided beyond fall 2015 and /or unexpected weather conditions such as drought that could occur during the proposed project implementation. CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 2015 -05 -05 Agenda Packet Page 136 Months Needed to Complete Proposed Start Date Task # Task Name "n" Task Task End Date Months from NTP .d Implementation if Months from NTP la Site Preparation Year 1: 0 Months from NTP Year 1: 4 Months from NTP Year 1: 12/31/2015 1 b Cactus Collection and Plantin Year 1: 1 Month from NTP Year 1: 5 Months from NTP Year 1: 1/31/2016 Year 1: 6 Months from NTP Year 1: 12 Months from NTP Year 1: 9/01/2016 1c Seed Collection and Redistribution Year 2: 12 Months from NTP Year 2: 24 Months from NTP Year 2: 9/01/2017 Year 3: 24 Months from NTP Year 3: 35 Months from NTP Year 3: 07/31/2018 Year 1: 0 Months from NTP Year 1: 12 Months from NTP Year 1: 09/01/2016 1 d Follow -up Maintenance Year 2: 12 Months from NTP Year 2: 24 Months from NTP Year 2: 09/01/2017 Project Year 3: 24 Months from NTP Year 3: 35 Months from NTP Year 3: 07/31/2018 2a Pre- implementation Monitoring (Field Assessment) Year 1: 0 Months from NTP Year 1: 3 Months from NTP i Year 1: 11/30/2015 Pre - implementation Monitoring (Cactus Wren Year 1: 0 Months from NTP Year 1: 3 Months from NTP Year 1: 11/30/2015 2b Survey) 2c Pre - implementation Monitoring (Photo Monitoring) Year 1: 0 Months from NTP Year 1: 3 Months from NTP Year 1: 11/30/2015 Year 1: 8 Months from NTP Year 1: 10 Months from NTP Year 1: 06/30/2016 2d Focused Coastal Cactus Wren Surveys Year 2: 20 Months from NTP Year 2: 22 Months from NTP Year 2: 06/30/2017 Year 3: 32 Months from NTP Year 3: 34 Months from NTP Year 3: 06/30/2018 Year 1: 6 months from NTP Year 1: 9 months from NTP Year 1: 5/31/2016 2e Follow -up Vegetation Monitoring Year 2: 18 months from NTP Year 2: 21 months from NTP Year 2: 5/31/2017 3a-c Repo Year 3: 30 months from NTP Year 3: 33 months from NTP Year 3: 5/31/2018 Year 1 Year 1 Year 1 QR1: 3 months from NTP QR1: 4 months from NTP QR1: 1/01/2016 QR2: 6 months from NTP QR2: 7 months from NTP QR2: 4/01/2016 QR3: 9 months from NTP QR3: 10 months from NTP QR3: 7/01/2016 Year 2 Year 2 Year 2 3a Quartterly Reports (QR) QR1: 15 months from NTP QR1: 16 months from NTP QR1: 1/01/2017 QR2: 18 months from NTP QR2: 19 months from NTP QR2: 4/01/2017 QR3: 21 months from NTP QR3: 22 months from NTP QR3: 7/01/2017 Year 3 Year 3 Year 3 QR1: 27 months from NTP QR1: 28 months from NTP QR1: 1/01/2018 QR2: 30 months from NTP QR2: 31 months from NTP QR2: 4/01/2018 QR3: 33 months from NTP QR3: 34 months from NTP QR3: 7/01/2018 3b Annual Report Year 1: 11 months from NTP Year 1: 12 months from NTP Year 1: 9/1/16 Year 2: 23 months from NTP Year 2: 24 months from NYP Year 2: 9/1/17 3c 4 5 Final Report Misc. Consultant Expense Chula Vis. Administration 35 months from NTP 9/2/15 9/2/15 36 months from NTP 35 months 36 months 9/01/2018 7/31/18 9/2/18 Notes: Please explain why and how much additional time would be needed in the event of any delays due to NTP being provided beyond fall 2015 and /or unexpected weather conditions such as drought that could occur during the proposed project implementation. CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 2015 -05 -05 Agenda Packet Page 136 NOTICE REGARDING PREVAILING WAGES SANDAG's EMP Land Management Grant Program projects are funded with TransNet revenues consistent with the TransNet Extension Ordinance adopted by the voters in November 2004 (SANDAG Ordinance 04 -01). Although SANDAG Ordinance 04 -01 does not require payment of prevailing wages, California law may require that public works projects pay prevailing wages for workers. Applicant acknowledges that SANDAG has strongly encouraged Applicant to seek legal counsel regarding whether the Proposed Project will require applicant to pay prevailing wages and agrees that SANDAG will have no liability for conducting this analysis. ® Yes E:1 No Applicant acknowledges that if awarded an EMP Land Management Grant, the grant agreement between SANDAG and the grantee requires grantee's compliance with all federal, state and local laws and ordinances applicable to the Agreement. ® Yes E:1 No CFP for the Seventh Cycle of the TransNet EMP Land Management Grant Program - Grant Application Form 10 2015 -05 -05 Agenda Packet Page 137 REQURRED STATEMENTS FROM APPLRCANT � Yes ❑ No The applicant has read and understands the Sample Grant Agreement (Agreement) and Invoice Template (Attachment C). 0 Yes ❑ No if the SANDAL Board of directors approves the proposed project proposal, the proposed applicant agrees to sign and return the Agreement to SANDAL, without exceptions or amendments, within 45 days of receipt. © Yes ❑ No The applicant agrees to comply with SANDAG's Board Policy No. 035 "Competitive Grant Program Procedures," which outlines "Use- it -or- lose -it" project milestone and completion deadlines. Board Policy No. 035 is included in the Agreement, and is also on SANDAG's website at the following link: htt :llwww.sanda .or for anization /about) ubsl olio 035. df © Yes ❑ No The applicant understands that ten percent (10 %) of all invoices will be retained until the completion of the proposed project. 0 Yes ❑ No The applicant understands that for proposed projects with matching funds, retention will be withheld beyond the ten percent (10 %) retention for each invoice submittal that does not meet the proportionate matching funds requirement. These additional matching funds retained will not be released until the proportionate matching funds are reached for the project to -date. FX_1 Yes ❑ No The applicant understands that all invoices must be accompanied by written, documented support of the charges for both requested reimbursement of grant funds and matching funds and payment will not be made by SANDAL until all documents are satisfactorily submitted. 0 Yes ❑ No The applicant understands that invoices and reports must be submitted on a quarterly basis within three weeks after the period covering January I to March 31; within three weeks after the period covering April 1 to June 30; within three weeks after the period covering July 1 to September 30; and within three weeks after the period covering October 1 to December 31. ❑ Yes ❑ No The applicant understands that the final invoice must be accompanied by written, documented support of the charges for both requested reimbursement of grant funds and matching funds; a final report; and all outstanding deliverables in order to receive final payment and have retained funds released. ❑ Yes ❑ No The applicant understands that to be considered eligible for funding, a resolution complying with the requirements of Board Policy No. 035, Section 4.1, must be submitted to SANDAL at least two weeks prior to the recommendation by the Regional Planning Committee of the list of prioritized project proposals. SANDAL will provide applicants with advance notice of the Regional Planning Committee's anticipated meeting date. � Yes ❑ No The applicant agrees to submit all project data/information to SANDAL in a format compatible with the regional management database. 2015 -05 -05 Agenda Packet Page 138 Image source: SanGIS (flown May 2012) W. 4' WFN I• ':,.. �t5 ��j 'L i' v' 'rti �4�. . }�. - �''�r.� �ll,.l _ili1.��- C r, ti. '�-�-� �' ,��55. '•+'�'`'•.: "'•'. vim+ f • *1 '4• ;�, f. - iTL ' '�'.� ^�•'�:{ • � °i�'�.`Ll•rl�jit. _J`�.:�1r'LI1 ��rl�r#te�r- �,. k � ��1 ' y� �v •'N LJ �'r poi �,� ��,. }J4` y'. •-, 5• "• ",1�� .Lry ..�'''M1 �5' -� ~�r' �v� ! 3t ;.. ' y L. 4' �. .�Y�� }F �{I14 ; " l rrP' ''•- l ��x5 -'• � _ 1� 7 1 1 �1.1'tl1 ,c r. Y•, �; :� •?5 f• '�-.L ' : `ter.•. J. 5 z '�., 7• -.r ' r n +' ; "�'' ~ _ ,.L irk y, r•1 1' _7 iJl� - �� i r r { �'y-' r� if ! � titi.^'��i¢` _'� : k.: i• •.� -_�I ��. •.r ; _.t 1 - f Y- yy -�C• ` • AN• _ icy 1 � -- 1� 1 l •+• - f �+fl`!�'"• ,'v { l - - - % Lam•: v I - "•{yo- r ,♦� � •�_ '� r ell 4 f � � } - •M1 __ f'' l J `,� � err• '• • . 4� � ray _ - _ M1k� � • ' � J.r: � 11 k _y.a �•5 fir`' F• J •� vL 1 v'� tiyY -� -�� L• . [LLv yy ',I� yv: F - vr. r - ,..+�'•� :_ Try- /�. .- }.; 1 r T - - { L• •• f $� k ,'vrti •••• .l f } •v .. ._- �• x Ji' • { r •}• - -, ¢ �[�+ ,•.{ �M1'`'�.. � i� may. •' . �, .: IBC• {� ,?4'•� r. :. J f� "T"Tllj�� }L'• 'N L 1 •'� li 'r• + f�S��n�� K • � �t rti, � _ r ' rya•• �' fL Y r' -� . _ L - - _ - 1� .-+ - _ • •1 }� k % IF I - o- 4�AiliJ�AJW.:1 � �� -. - -- -. •d ' . •- -. �- - rti_ ' L !l6iiiiia Ota Y Ranch Preserve Parcels 0 Feet 1,200 0 Previous Efforts Funded by Trans Net (Not Part of This Proposal) Seventh Cycle TransNet EMP Grant ®Cactus Wren Habitat Restoration Area (City of Chula Vista EMP Potential Restoration and Enhancement Areas Grant 5001970; ending summer 2015) Cactus Wren Habitat Restoration Area (County of San Diego FIGURE 1 -- ® Parks and Recreation Department EMP Grant; ended summer 4 2014) Potential Cactus Wren Restoration Areas CITY OF CHULA VISTA At Salt Creek and Millenia Parcels 2015 -05 -05 Agenda Packet Page 139 RESOLUTION NO. 2015- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACKNOWLEDGING GRANT REQUIREMENTS OF SANDAG TO IMPLEMENT A MULTI- YEAR COASTAL CACTUS WREN HABITAT RESTORATION PROGRAM WITHIN THE CHULA VISTA OTAY RANCH PRESERVE MANAGEMENT AREA, AUTHORIZING ACCEPTANCE OF THE GRANT FUNDING SHOULD IT BE AWARDED FROM SANDAG, AND AUTHORIZING THE CITY MANAGER TO EXECUTE A GRANT AGREEMENT WITH SANDAG WHEREAS, the TransNet Extension Ordinance contains provisions for the creation of an Environmental Mitigation Program (EMP), which began being funded by the Extension Ordinance on April 1, 2008; and WHEREAS, the TransNet EMP allocates funding for land management and monitoring activities including habitat acquisition, habitat management, and biological resource monitoring activities to help implement regional habitat conservation planning efforts; and WHEREAS, in September 2014 SANDAG Board of Directors allocated $1.5 million of TransNet EMP funding for land management projects that promote invasive species control and restoration, specific management for at risk species, and general activities such as habitat maintenance, access management, and the coordination of volunteers; and WHEREAS, in October 2014 SANDAG issued a request for proposals from entities wishing to apply for a portion of the EMP funds for use on environmental land management projects meeting certain criteria; and WHEREAS, in January 2015 the City prepared and submitted a grant application to SANDAG requesting $189,836 to fund amulti -year Coastal cactus wren habitat restoration program within the Otay Ranch Preserve Management Area (Otay Ranch Preserve); and WHEREAS, the Coastal cactus wren is a Covered Species under the City's Multiple Species Conservation Program (MSCP) Subarea Plan; and WHEREAS, loss and degradation of Coastal cactus wren habitat within the Otay Ranch Preserve is occurring due to historical cattle grazing, weed invasion, drought, and vegetation succession; and WHEREAS, the proposed restoration and enhancement program has been developed to ensure the prolongation of the Coastal cactus wren through active management of suitable Cactus wren habitat; and 2015 -05 -05 Agenda Packet Page 140 WHEREAS, the grant proposal has been developed consistent with the City's adopted MSCP Subarea Plan to ensure that Covered Species are adequately protected; and WHEREAS, the requested funding amount of $189,836 would sufficiently fund the activities offered though the proposed Coastal cactus wren restoration and enhancement program which are essential for the prolongation of the Coastal cactus wren and would reduce the vulnerability of this species to extirpation; and WHEREAS, as part of the grant, the City will provide $3,744 of matching funds through in -kind City services as set forth in the grant application; and WHEREAS, in April 2015 SANDAG's Environmental Mitigation Program Working Group recommended the City's proposal for funding to SANDAG's Regional Planning Committee; and WHEREAS, staff will select a qualified biological consultant to implement this program in accordance with the purchasing procedures set forth in Chula Vista Municipal Code (CVMC) 2.56. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby authorize acceptance of the subject grant funds should they be awarded by SANDAL. BE IT FURTHER RESOLVED that should SANDAL award the grant funding, the City commits to provide $3,744 in matching funds through in -kind services. BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Manager to execute the subject grant agreement with SANDAL. Presented by Approved as to form by Gary Halbert, PE, AICP Glen R. Googins City Manager City Attorney 2015 -05 -05 Agenda Packet Page 141 .� Emma CITY OF CHULAVISTA File #: 15 -0081, Item #: 7. City of Chula Vista Staff Report CONSIDERATION OF AMENDING CHAPTER 18 (MOBILEHOMES) OF THE CITY'S MASTER FEE SCHEDULE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SETTING THE ADMINISTRATIVE FEE FOR RENT CONTROL SERVICES AT $40 FOR FISCAL -YEAR 2016 IN CHAPTER 18 (MOBILEHOMES) OF THE CITY'S MASTER FEE SCHEDULE RECOMMENDED ACTION Council conduct the public hearing and adopt the resolution. SUMMARY Effective August 18, 2011, the City, under Chula Vista Municipal Code (CVMC) Section 9.50.030, established an Administrative Fee to be assessed upon all eligible mobilehome residents receiving benefits and services under CVMC 9.50 ( "Chapter 9.50 ") - Mobilehome Park Space Rent Review. At this time, staff is bringing forward Chapter 18 of the Master Fee Schedule, to set the annual administrative fee at $40 for Fiscal -Year 2016 ( "FY 16 "). ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity, amendments to the Master Fee Schedule pertaining to fees associated with City administrative costs for administering programs associated with City's Mobilehome Program, for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378(b) (4) of the State CEQA Guidelines (creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project), because the proposal consists of amendments to the City's Master Fee Schedule and does not pertain to a site specific project and will not result in a direct or indirect physical change in the environment. Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no further environmental review is necessary at this time. BOARD /COMMISSION RECOMMENDATION An information presentation on the Administrative Fee was provided to the Mobilehome Rent Review Commission at their April 22, 2015 meeting, providing an opportunity for public and Commission input on the fee collection process. DISCUSSION On July 19, 2011, City Council approved an amendment to Chapter 9.50 which established an Administrative Fee to provide funding for implementation of the ordinance (which offers unique benefits and services solely to eligible mobilehome residents). As part of the annual Administrative City of Chula Vista Page 1 of 4 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by Le istarTM age 142 File #: 15 -0081, Item #: 7. Fee update process, staff is reporting out on prior year revenues and expenditures to establish the amount necessary to recover the costs of administering Chapter 9.50. This report provides an update on revenues and expenditures for July 1, 2014 - June 30, 2015 and recommends the fee for FY 16. Fiscal Year 2015 ( "FY 15 ") Revenues and Expenditures Anticipated revenues for FY 15 were expected to be $80,000 based on 2,000 residents paying the fee at $40. Actual payments were received from 2,104 eligible spaces for total revenues of $84,180. A fiscal analysis of revenues and expenditures is provided in Table 1 with a description of the activities following. Table 1 FY 2015 BUDGET SUMMARY Anticipated Actual Revenues: Collected Revenue Fund Balance from Prior Year 7/1/14 $80,000 $84,180 $81,104 TOTAL REVENUES $165,284 Expenditures: Staff Charges Experts Postage Office Supplies Printing & Binding TOTAL EXPENDITURES Surplus /Deficit $92,000 $651000 $25,000 $25,000 $1,000 $900 $500 $500 $1,500 $1,200 $92,600 1$72,1684 Staff Charges Administration of Chapter 9.50 resulted in staff charges of $65,000 for FY 15. Staff provided the following services during FY 15: • Ombudsman Activities (Office Visits & Mobilehome Information Line) - Staff responded bilingually to all inquiries related to Chapter 9.50. • Resident Invoicing - A June 1St billing and /or ineligible notice was sent to all mobilehome /trailer residents and an August 1St reminder notice was sent to all residents with a balance due. • Fee Collection - Collection and processing of fee payments received. • Database Maintenance - Maintained the database with current resident information. • Mobilehome Rent Review Commission ( "MHRRC') Educational Meetings - Provided general ombudsman related activities to residents and held informational meetings with the MHRRC. • Annual Permissive Rent Calculations - Twice a year, the Consumer Price Index (CPI) is released and notification was sent to all park owners and managers of the annual permissive rate as calculated under Section 9.50.050. • Rent Review Inquiries /Hearing Administration - Staff coordinated inquiries regarding rental increases between residents and park management as needed and in late March 2015 City of Chula Vista Page 2 of 4 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by Le istarTM age 143 File #: 15 -0081, Item #: 7. received a Request for Hearing in relation to rental increase notices above the annual permissive rate for residents at Rancho Bonita Mobilehome Park. It is anticipated that the Rent Review Hearing for the park will be heard in June 2015. Experts It is anticipated that costs associated with hiring of experts and staff time for the Rancho Bonita Mobile Home Park will be realized during FY 15. Administrative Costs (Postage, Office Supplies and Printing) During FY 15, expenses included envelopes, postage, printing of bills and CPI notices, and publication of this hearing notice. Fiscal Year 2016 (FY 16) Budget and Administrative Fee Staff recommends the fee be maintained at $40 dollars for FY 16 due to the current fund balance. Table 2 provides a summary of the FY 16 budget which includes a contingency of $25,000 for expert time related to one additional case if needed and $11,684 for other miscellaneous contingencies. Table 2 FY 2015 BUDGET SUMMARY As discussed above, staff will be hearing the first case under rent review since the institution of the Administrative Fee and funds to hire a fair rate of return expert were available. Accounting of related expenses will be assessed for future budgeting of rent review cases. DECISION -MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. City of Chula Vista Page 3 of 4 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by Le istarTM age 144 Budget Revenues: Available Fund Balance as of 711115 Anticipated Revenues (2,100 @ $40) $72,,684 $84,000 Expenditures: Staff Charges Experts Postage Office Supplies Printing & Binding TOTAL ANTICIPATED EXPENDITURES Anticipated Fund Balance as of 6130116 $92,000 $25,000 $1,000 $500 $1,500 $1201000 $361684 Contingency for Experts $251000 Anticipated Surplus /Deficit $11,684 As discussed above, staff will be hearing the first case under rent review since the institution of the Administrative Fee and funds to hire a fair rate of return expert were available. Accounting of related expenses will be assessed for future budgeting of rent review cases. DECISION -MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. City of Chula Vista Page 3 of 4 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by Le istarTM age 144 File #: 15 -0081, Item #: 7. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The updates to the Master Fee schedule adhere to the general city policy to ensure private interest activities are not being subsidized by the public at large. The nature of these activities is consistent with the Goals, Strategies and Initiatives in Operational Excellence. Strategy 1.1: Uphold a commitment to Fiscal Health. Initiative 1.1.1: Implement Fiscal Recovery and Progress Plan. CURRENT YEAR FISCAL IMPACT The administrative fee established a Mobilehome Park Space Rent Review Administrative Fee fund to reimburse the City staff time and other costs associated with administering Chapter 9.50. It is projected that this fund will have an available fund balance of $72,684 that will be restricted for administration of the ordinance and rent review case related expenses. ONGOING FISCAL IMPACT The proposed FY 16 budget reflects the revenues and expenditures for this program. ATTACHMENTS 1. Proposed Amendment to Chapter 18 of the Master Fee Schedule Staff Contact: Stacey Kurz, Senior Project Coordinator Housing Division, Development Services Department City of Chula Vista 2015 -05 -05 Agenda Packet Page 4 of 4 Printed on 4/30/2015 powered by Le istarTM age 145 ATTACHMENT 1 MASTER FEE SCHEDULE FEL 13ULLETIN W-0 ` Chapter 18 — Mobilehomes General Fees wl 8=1 0 1 CITY OF City of Chula Vista Development Services CHULAVISTA 276 Fourth Avenue, Chula Vista, CA 91910 May 2015 MOBILEHOME PARK SPACE RENT REVIEW ADMINISTRATIVE FEE An administrative fee is required of all households residing in eligible mobilehome spaces to receive the benefits and services provided in Chapter 9.50 of the Chula Vista Municipal Code, Mobilehome Park Space Rent Review. The administrative fee is assessed annually, with payments due by July 1 St. There is a sixty (60) day grace period that commences on the due date, within which payments will be accepted. Annual fee, per mobilehome space ................... $40 MOBILEHOME PARK CLOSURE OR DISCONTINUANCE APPLICATION FEE Pursuant to Chapter 9.40 of the Chula Vista Municipal Code, Housing Assistance, prior to any Mobilehome Park closure or cessation of use an application must be filed with the City. Application fee .............................. Full cost recovery Initial deposit ................ ............................... $5,000 FULL COST RECOVERY For all full cost recovery fee items, an initial deposit shall be collected to cover the City's full cost, including overhead, incurred in conjunction with review and processing as requested by applicant. Additional funds may be collected, as required, to cover City costs. Should the application be withdrawn at any time, the deposit shall be adjusted to cover the City's actual costs, including overhead, up to that time. Any funds remaining on deposit at the time of the completion or withdrawal of the application shall be returned to the depositor, after accounting for expenses incurred to date. See Master Fee Schedule Fee Bulletins 1 -100 and 1 -200 for additional discussion of full cost recovery and current hourly rates. City of Chula Vista www.chulavistaca.gov 619.585.5600 2015 -05 -05 Agenda Packet Page 146 RESOLUTION NO. 2015- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SETTING THE ADMINISTRATIVE FEE FOR RENT CONTROL SERVICES AT $40 FOR FISCAL -YEAR 2016 IN CHAPTER 18 (MOBILEHOMES) OF THE CITY'S MASTER FEE SCHEDULE WHEREAS, California State Mobilehome Residency Law allows local jurisdictions to establish rent control; and WHEREAS, in 1982, the City adopted Chula Vista Municipal Code Chapter 9.50, "Mobilehome Park Space — Rent Review," as allowed by Mobilehome Residency Law, and amended it to its current state on July 19, 2011; and WHEREAS, these amendments took effect August 18, 2011 and established an administrative fee to provide a limited segment of the public, specifically mobilehome residents, per 9.50.030, the ability to obtain unique services and benefits available to them only under Chapter 9.50, including, but not limited to, a rent calculation (via the annual permissive and exceeding the annual permissive) which results in reduced rents and related ombudsman services; and WHEREAS, on February 14, 2012 the City adopted "Mobilehome Park Space - Rent Review Administrative Fee Regulations" establishing a process for determining and collecting such fee; and WHEREAS, the proposed fee does not exceed the estimated reasonable cost of providing the associated services and the fund balance of the fee and estimated revenues for 2015 are sufficient to warrant maintaining the fee rate for the coming year; and WHEREAS, Article XIII C of the California Constitution requires a vote of the electorate to increase any levy, charge, or exaction imposed by a local government, unless specifically exempted; and WHEREAS, pursuant to the provisions of Article XII C, the proposed fees are exempt from the vote requirement; and WHEREAS, the proposed amendment to the Master Fee Schedule Chapter 18 (Mobilehomes) shall become effective upon adoption of this Resolution by the City Council. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept Chapter 18 (Mobilehomes) of the City's Master Fee Schedule as reflected on Exhibit 1 to this Resolution and sets the fee as $40 for Fiscal -Year 2016. Presented by: Approved as to form by: Kelly Broughton Glen R. Googins Director of Development Services City Attorney 2015 -05 -05 Agenda Packet Page 147 EXHIBIT 1 MASTER FEE SCHEDULE FEE BULLETIN Chapter 18 — Mobilehomes General Fees 1 8=1 0 1 CITY OF City of Chula Vista Development Services Ir CHULAVISTA 276 Fourth Avenue, Chula Vista, CA 91910 May 2015 MOBILEHOME PARK SPACE RENT REVIEW ADMINISTRATIVE FEE An administrative fee is required of all households residing in eligible mobilehome spaces to receive the benefits and services provided in Chapter 9.50 of the Chula Vista Municipal Code, Mobilehome Park Space Rent Review. The administrative fee is assessed annually, with payments due by July 1 St. There is a sixty (60) day grace period that commences on the due date, within which payments will be accepted. Annual fee, per mobilehome space ................... $40 MOBILEHOME PARK CLOSURE OR DISCONTINUANCE APPLICATION FEE Pursuant to Chapter 9.40 of the Chula Vista Municipal Code, Housing Assistance, prior to any Mobilehome Park closure or cessation of use an application must be filed with the City. Application fee .............................. Full cost recovery Initial deposit ................ ............................... $5,000 FULL COST RECOVERY For all full cost recovery fee items, an initial deposit shall be collected to cover the City's full cost, including overhead, incurred in conjunction with review and processing as requested by applicant. Additional funds may be collected, as required, to cover City costs. Should the application be withdrawn at any time, the deposit shall be adjusted to cover the City's actual costs, including overhead, up to that time. Any funds remaining on deposit at the time of the completion or withdrawal of the application shall be returned to the depositor, after accounting for expenses incurred to date. See Master Fee Schedule Fee Bulletins 1 -100 and 1 -200 for additional discussion of full cost recovery and current hourly rates. City of Chula Vista www.chulavistaca.gov 619.585.5600 2015 -05 -05 Agenda Packet Page 148 .� Emma CITY OF CHULAVISTA File #: 15 -0006, Item #: 8. City of Chula Vista Staff Report CONSIDERATION OF APPROVING A FEE DEFERRAL AGREEMENT WITH STONE CREEK CASITAS, LLC RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A DEVELOPMENT IMPACT FEE DEFERRAL AGREEMENT WITH STONE CREEK CASITAS, LLC FOR APPROXIMATELY $1.7 MILLION OF FEES IN CONNECTION WITH A 97 UNIT APARTMENT PROJECT ON MAIN STREET NEAR WALNUT DRIVE RECOMMENDED ACTION Council adopt the resolution. SUMMARY On April 14, 2015 the City Council approved an ordinance that amended the Municipal Code adding chapter 3.56. This chapter allows the City Council to approve development impact fee deferral agreements for eligible projects in Western Chula Vista. The proposed fee deferral agreement with Stone Creek LLC is an eligible project as defined by the Municipal Code and will reduce the enhanced equity requirement being imposed by the lending industry, allowing the project to obtain construction financing. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity, approval of a fee deferral agreement for the Stone Creek Casitas, for compliance with the California Environmental Quality Act (CEQA) and has determined that the Stone Creek Casitas project is adequately covered by the previously approved Mitigated Negative Declaration (IS 13 -006) and that the Fee Deferral Agreement is not "Project ", as defined under Section 15378(b)(4) of the State CEQA Guidelines; therefore, pursuant to Section 15060 (c)(3) of the State CEQA Guidelines the current activity is not subject to CEQA. BOARD /COMMISSION RECOMMENDATION Not Applicable DISCUSSION Staff recommends entering into an agreement with Stone Creek LLC for the development of a 97 unit apartment complex along Main Street. The proposed project meets the requirements of Municipal Code 3.56 in that it will provide a public benefit by providing new highly amenitized market rate rental housing in the southwest area of Chula Vista. The project proposes to build enhanced features such as BBQ areas, a children's area with play equipment and a recreational building with a pool. There will also be walking trails and enhanced passive open spaces between the buildings and along the City of Chula Vista Page 1 of 3 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by Le istarTM age 149 File #: 15 -0006, Item #: 8. existing channel. The project will have high quality Spanish style architecture with tiled roofs, cultured stone, decorative shutters, covered patios and arched openings. Staff also received and reviewed the project pro -forma to determine overall project feasibility. Upon review of the project's pro- forma, staff concurred that the project is not feasible based on the required lease payments to support the loan. The project does not have any available comparables that collect the required lease payments that can be used to support the issuance of a construction or take -out loan. Because of the quality and cost of construction and the lack of available comparables the project requires an additional ten percent equity to secure its financing. The proposed fee deferral agreement will provide the additional equity by reducing the upfront construction costs associated with the collection of development impact fees. Without the proposed fee deferral agreement the proposed project would not be financially viable based on today's comparables and the requirements of the lending industry. The agreement proposes to defer the payment of development impact fees in accordance with the following terms: • City agrees to finance the Public Facilities Development Impact Fee, Parkland Acquisition and Development Fee, and portions of the Transportation Development Impact fee over thirty (30) years from the date of the agreement. The current estimate of the deferred fee is approximately $1,728,637 which represents about ten percent (10 %) of the total cost of construction. It should be noted that a portion of the Transportation Development Impact Fee cannot be deferred and must be collected at certificate of occupancy as required by the TransNet Extension Ordinance, SANDAG Board Policy No. 31 and previous City Council Resolutions, including 2014 -066. • The deferred fees will accrue interest at two percent (2 %) per annum. Interest shall begin to accrue upon issuance of a building permit. • No payments will be due during the first ten (10) years of the agreement. • Payments toward the deferred impact fees will be due on July 1 st following the tenth (10th) anniversary of the agreement and continue until the fees have been paid in full by 30th year of the agreement. • Payments shall consist of principal and interest, fully amortized over thirty (30) years. • The Developer agrees to record a trust deed to secure repayment of the impact fee deferral; however the trust deed is expected to be subordinated to the lender providing project financing. The City reserves the right to reasonably approve the lender and the terms of the subordination. • Developer agrees that the impact fee deferral will be paid in full upon any transfer of the project to a new buyer unless the City reasonably approves the new buyer and the buyer expressly assumes the repayment obligation; The agreement will be effective only when the City's fee deferral program becomes fully effective on May 21, 2015. The overall terms of the proposed agreement are consistent with the requirement of section 3.56 of the Municipal Code. DECISION -MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings City of Chula Vista Page 2 of 3 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by Le istarTM age 150 File #: 15 -0006, Item #: 8. within 500 feet of the boundaries of the property which is the subject of this action. Staff has reviewed this matter and has determined that Councilmember Miesen may have a prohibited financial interest in this matter because of his financial interest in Republic Waste (as a source of income). As a result, his recusal is recommended. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The deferral agreement furthers strategic goal 2.1.2 because this action provide policies that encourage investment in western Chula Vista. CURRENT YEAR FISCAL IMPACT There is no current year fiscal impact as a result of this action. ONGOING FISCAL IMPACT Approval of the Stone Creek Agreement defers impact fee revenues of approximately $1,728,637 that would have otherwise been collected by the Western Transportation Development Impact Fee fund, Western Parkland Acquisition and Development Impact Fee fund, and the Public Facilities Development Impact Fee fund, as summarized in the table below. In order to mitigate future construction cost increases and lost investment earnings, the deferred impact fees will accrue interest charges at a rate of 2% per year, beginning with the issuance of the certificate of occupancy for the project. ATTACHMENTS A. Agreement with Stone Creek LLC Staff Contact: Eric Crockett, Economic Development Department Kelly Broughton, Development Services Department City of Chula Vista Page 3 of 3 Printed on 5/1/2015 powered by LegistarTM Units TDIF PFDIF PAD Total Deferred Fee per Unit Project Total $ 871 97 $841487 $ 91343 $ 9061271 $ 71607 $ 7371879 $ 179821 $ 197289637 In order to mitigate future construction cost increases and lost investment earnings, the deferred impact fees will accrue interest charges at a rate of 2% per year, beginning with the issuance of the certificate of occupancy for the project. ATTACHMENTS A. Agreement with Stone Creek LLC Staff Contact: Eric Crockett, Economic Development Department Kelly Broughton, Development Services Department City of Chula Vista Page 3 of 3 Printed on 5/1/2015 powered by LegistarTM THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ` t len gin Goo City tome Dated: L+ 3v l5 AGREEMENT FOR DEFFERAL OF DEVELOPMENT IMPACT FEES 2015 -05 -05 Agenda Packet Page 152 AGREEMENT FOR DEFERRAL F DENIELOPMENT IMPACT FEES This AGREEMENT ENT FOR DEFERRAL OF DEVELOPMENT IMPACT FEES o "Efecte D te`. ("Aareement") is entered into effective Mat bNY and bet ween the City of Chula Vista, a chartered municipal corporation (the "Citv". and Stone Creep Casitas. LLC. a California limited liahilit r companxf ("Developer"). The City and Developer are collectivelv referred to in this c,,-yreement as the Parties ". The Parties enter into this A reernent with reference to the following recited facts (each a "Recital" ). FC1TA1 A. Developer (and/or its affiliates) oxNms, in fee simple. the real property, 2enerallv keno %Nm as 3875 Main Street. Chula Vista. CA 91911: as described and depicted in the attached Exhibit "A" (the "Propert F... incorporated herein bar this reference. B. The De,%reloper has applied for and the City has approved the development of a 97 -unit apartment project on the Property (the ""Project"). C. As authorized bit California Government Code section 66000; et seq.. the Cite imposes development impact fees in connection with the approval of a development project. Such fees include: i the Public Facilities De velopment Impact Fee pursuant to Chula Vista Municipal Code "C r y" section 33-50. et seq. OW IF "): ii the Western Transportation De velopment Impact Fee pursuant to CVMC section 3.55. et seq. "TI IF" : and (iii) the Part: De veIoprnent Fee pursuant to CV C section 17.10. et seq. ("PAD" . D. Developer has pursued numerous financing sources to finance the Project. and has obtained a commitment for the requisite financing to commence and complete the Project: ho wever. the terms of the financina. require that pa anent of ceriain development fees be deferred and paid in installments, rather than at the issuance of the rtifi at of occupancy for the residential units. as otherNrise required b, the Citt. E. Without such deferral, the Developer vvill be unable to secure financing and the Project will not be financially feasible. F. Developer has requested that the Cit F defer the PFDIF, the T IF and the PAD, estimated to be $1 .72 .6 7. in order to obtain the financing necessary to construct the Proj ect. G. The City has the authority to defer the pa yment of certain impact fees in accord anee with CVMC section -3.56.010. Spec 1ficalI the Cite may authorize deferral o f the P DIF, the PAD_ and the portions of the T1 IF that are not lea-akl v required to be collected at the time of issuance of a certificate of occupancv of each residential unit collectively the "Deferred Fees"). In approving this Agreement. the Cite has made the findincys required by CVMC section x.56.01 o to allow for the deferral of the Defer-red Fees. It is estimated that the Deferred f Fees are S 1.7.6 . 60297.00044\9743848.6 -� - 2015 -05 -05 Agenda Packet Page 153 H. The City has deterrnined that, at the time of the execution of thisreenent, the fair market interest rate is 2.0%. 1. This Agreement is intended to satisfy the provisi on s of CVM C chapter 3.56 and allow the deferral of the Deferred Fees for a Period not to exceed 3)0 years. AGREEMENT NOW THEREFORE. in consideration the above Recitals and for good and valuable consideration the receipt and sufficiency f Which the Parties hereby acln�lede. Developer and the City agree as follo ws: 0 I Agreement to r- the Deferred .,.., Fees. City agrees to defer Developer's obligation to Pay the Deferred Fees for the Project subject to Developer's obligation to pay the Deferred Fees on the terms and conditions set forth herein. 2. Deferred Fees. The Developer agrees and affirms that it has an obligation to pay the Deferred Fees for the Project and shall do so on the terns and conditions set forth within this Agreement. a. Amount of Deferred Fees. At the time of the execution of this Agreement, the Deferred Fees are estimated to be One Million Seven Hundred Twenty Eiaht Thousand Six Hundred and Thirty Seven Dollars $ 1,728,637. This amount is an estimate only. and the amount of Deferred Fees under this Agreement shall be calculated according to the rates in effect at the time of issuance of the building permits for the Project. h. Interest. Interest shall accrue from the date of issuance: of a certificate of occupancy for the Project at a rate of two Percent (2.00%) per annum on any outstanding Deferred Fees balance during the deferral period. Pay €menu. Starting on the first day of the eleventh year after the Effective Date of this Agreement i.e. the 121" month) (the "Payment Start late''), Developer shalI 'make monthly payments., due on the first day of each month, for the remaining terra of this Agreement until the Deferred Fees, and any accumulated interest and penalties on the Deferred Fees have been paid in full. All interest that has accrued prior to the Payment Start Date shall he paid in equal monthly installments over the repayment term i.e. 240 equal installments) and no further interest shall accrue on said accrued interest amount: provided. however., that interest shall continue to accrue on any unpaid Deferred Fees. a. Amount_ of Monthlv Payment. The amount of each monthly payment will he identified in the Schedule of Payments, which will he attached hereto as Exhibit "C" and incorporated herein by this reference when the final amount of the Deferred Fees is fixed. The schedule will identify the portion of the payment that will be applied to interest and to principal. i Remittance: The required payments shall be made in irnrediatel' available funds, either certified cheep or vire transfer as follo ws. I 6029 7.000 4419 7 43 84 8.6 2015 -05 -05 Agenda Packet _2_ Page 154 To : Director of Finance. Litt of Chula Ciry 276 Fourth Avenue, Chula Vista CA 91910. b. Late Pavments. Late payments shall accrue interest at a rate of % per annum. C. Returned Check Penalties. In the event that a payment is returned for insufficient funds or otherwise. the Developer shall pair the Cit v anv expenses It m av occur as a result of the returned cheek. Interest, in accordance with section h shall also accrue on the outstanding month1v pa vent amount until such funds are remitted in full. d. l repa vent. The Developer- rna # prepa v the outstandincy balance in whole or in part. without incurring and# penalt.v. and such payment will he deducted from the balance owed. 4. Acceleration of Pavments. Developer shall pav the outstandino- balance of the Deferred Fees. including any accrued interest and penalties, in full prior to any transfer, including sale or devise. of the Property and/or the Project and associated entitlements to any other p rtv or entit t. subject to the provisions of sections 1 1 and 14 herein: or folio wincy a % %Tritten notice from the City that Developer- has materially breached this Agreement. and such breach remains uncured for 21 da vs after deli Dery of notice. 5. Note. Developer s obligation to pay, the Deferred Fees shall he evidenced bN? a Promissory note "dote'' executed b t Developer in favor of the itv, substanti ll F in the form attached hereto as Exhibit `; ." In the event of inconsistency between the terms of the Note and those of this c2reernent. the terms of the 'Note shall control. Developer shall execute and deliver the Note to the City when the final amount of the Deferred Fees is fixed. and prior to the issuance of a certificate of occupancy for the Project. 6. Deed of Trust. The Note representing the oblialation to past the Deferred fees shall be secured h v a deed of trust recorded with the Countv Recorder of the C unt f of Saxe Diecyo against the Propert r ``Trust Deed "' The Trust Deed shall be in substantiall -r the form attached hereto as Exhibit "D ", a. Trust Deed Position. Except as expressIv prided herein. the Trust Deed shall be first in pri nit v to all other financial liens with respect to the Properw and the Project. b. Agreement to Subordinate. The City agrees to subordinate its lien position to financin. for the construction of the Project. a takeout loan or refinancing of the same provided that such financine is provided bar a lender reasonably appro ved b f the City and the leader affords Cite reasonable m rtaaaee protection. as reasonable determined by the Cit f. C. Recordation. The Trust Deed shall be recorded prior to the issuance of a certificate icate coup ncN7 for the Project. 60297M044\9743848-6 -,- 2015-05-05 Agenda Packet Page 155 7. Title Report and Insurance. Developer shall provide the City a policy of title insurance securing its position in the amount of the Deferred Fees ( "Title Policy"') in a form reasonably approved by the Cit ,. . Record in . In addition to the above - mentioned security obligations, the Developer shall record this Agreement or notice thereof with the County Recorder of the County of San Diego within thirty 30 days of its execution and the obligations hereunder shall be binding upon successors in interest until released in writing by the City or in accordance with any other provisions of this Agreement. 9. Ivlo rnent of the Pro`ect. This Agreement does not obligate Developer to develop the Project on the Property. If Developer provides notice to the. City of its abandonment of the Project at anNr time prior to issuance of a certificate of occupancy. Developer shall have no obligations or liabilities under this Agreement, the Note and the Trust Deed, and each shall be deemed rescinded and reconveyed as appropriate; provided, however, if Developer or any successor thereto thereafter proceeds with development of the Project, the Deferred Fees therefor, recalculated at the time of filing Britten notice of intent to proceed; shall be due and payable as a condition of issuance of a certificate of occupancy. 10. Waiver of Time to lv for Deferral. The requirements set forth in CVMC sections ).56.0' o a : pertaining to the time to file an application with the Development Services Director for deferral of the Impact Fees; are hereby waived as permitted therein. l I . Assignments and Transfers. Developer per may not assign or transfer all or any portion of its interest in the Property or Project, unless and until a Developer pays any and all outstanding amounts owed under the Note, or b City reasonably approves the proposed transferee(s), and such transferee(s) agrees in writing to assume Developer"s obligations hereunder. In determining whether to copsent to an assignment or transfer of interest, the City may evaluate the financial position of the entity or individual to whom the transfer is proposed; the length of time such entity or i 1 Status of Acrreemenl upon V lun n?- Annexation into CFI . Provided Developer i current in its obligations to make rnonthkr pa rnents- if the e -vel p r- elects to annex into the CFD and if the vexation process is completed. Developer hall ha-%re ha-%r no further obligations or liabilities under this A reement. the Note w -hich shall be deemed satisfied in full. or the Trust Deed. and the trustee under the Trust Deed shall execute and record a deed of full reconvevance. In the event that Developer has outstandincy pavments at the time of vexation of the Property into the C 1 . upon its pa rments of all outstandina.. amounts. including am penalties and interest. it shall be released from its oblic,rationS. Until such time. interest and penalties shall accrue on an\f outst ndiniR amounts. 14. Remedies. In order to enforce t e teloper�s obligations under the terms of this Acyre m nt or the Note. the Cit f shall be entitled to pursue an-%T and all remedies prided at la v= or in equit r. includino.. without limitation, and, and all remedies pro-%,ided under this Agreement. the Note and Trust Deed. Without limiting the cenerallty of the r Qy in cl.. in the event of a default bar l evrel per of its obligations hereunder. the City shall ha 'e the right to accelerate the debt owed under the Note and pursue collection of the Deferred Fees directINT from Developer. All such remedies shall be cumulative and non- exclusi ve. Notwithstandina the f recRoin( and provided that Developer is current in its obligations under this ALYreernent. Developer shall have no further oblicayations or liabilities under this Agreement and the Dote upon are assi rrlment or transfer of the Project appr v d in \ %Tltln g bar the Clt '. W I recitals and Exhibits. Any recitals set forth above and exhibits attached hereto are incorporated bNr reference into this Agreement. 16. Au h rit�t. Each f the signatories to this Agreement warrants and represents that he or she is competent and authorized to enter this Agreement on behalf of the Pany for whom e or she purports td sign. 17. , ices. Unless otherwise speeifiealiv permitted h r this Agreement. all notices or other communications required or permitted under this areement shall he in writing, and shall be personallr delivered; sent b'v registered or certified mail. postage prepaid. return receipt requested: or sent by facsimile, provided that the telecop r cover sheet contain a notation of the date and time f transmission, and shall be deemed received: a if pers nall r delivered. upon the date of delivery to the address of the person to receive such notice. h if mailed in accordance N ith the Provisions of this paragraph, two business da vs after the date placed in the United States mail. c if mailed ogler than in accordance with the Provisions of this paragraph or mailed from outside the [united States, upon the date of delivery to the address of the person to receive such notice, or d if alv n b,%' facsimile during business hours when deli f r v can be confirmed. firmed. wh n delivered. Notices shall be given at the following addresses: If to City: Clt ' of Chula Vista 276 Fourth Avenue Chula Vista. CA 91910 Attn: Director of Development Services Email: kbrou htonO-ehula \ristaea.a.oxF 0? 7. 0044 {4'5"8.8.6 2015 -05 -05 Agenda Packet _- Page 157 If to Developer: Jinn Pieri Stone Creek Casitas, LLC H Street Chula vista, CA 9191 mail: jir .pleri @mountainwest.eom With copies to: Michael Sobko aria , Esq. Friedman Law Group, P.C. 1900 Avenue of the Stars. l I th Floor Los Angeles, CA 90067 Email: iinsobkowiak@flg-law.com City of Chula Vista 276 Fourth Avenue Chula vista, CA 91910 Attn: City Attorney 18. � Captions. Captions in this Agreement are inserted for convenience of reference and do not define, describe or limit the scope or intent of this Agreement or any of its terms. 19. Allocation of Legal Expenses. Each Party shall bear its oven costs relative to any costs or expenses incurred in compliance with. or in the drafting r negotiation of, and the approval process, of this Agreement. 20. Entire A ree en . This Agreement contains the entire agreement between the parties regarding the subject matter hereof. Any prior oral or written representations, cyreements, understandings, and/or statements shall be of no force and effect and are intended to be replaced in total by this Agreement. Each Party warrants and represents that no representative of any other Party has made any .oral representation or oral agreements not contained in this Agreement. Each party further warrants and represents that it has not relied upon any oral statements or promises made by any representatives of any other Party to this Agreement in executing this Agreement. 21. Preparation of Agreement. No inference, assumption or presumption shall be drawn from the fact that a party or its attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both parties participated equally in the preparation and/or drafting of this Acyreement. 22. Attorney -s' Fees. In any action or proceeding brought by either Party seeking to enforce the provisions of this Agreement, the prevailing party shall be entitled to reasonable attorneys{ fees and court costs in addition to any other costs, damages, or remedies. 23. Caning Lays% This Agreement shall be subject to and governed by the lavers of the State of California, Nvithont regard to conflict of law rules. 24. Severabilit r. In the event that any provision of this Agreement i5 declared by any court of competent jurisdiction or any administrative judge to be void or otherwise invalid, all of the other terms, conditions and provisions of this urreement shall remain in full force and effect to the same extent as if that part declared void or invalid had never been 60297.00044\974-3848.6 2015 -05 -05 Agenda Packet _- Page 158 incorporated in the Agreement and in such form; the remainder of the Agreement shall continue to be binding upon the Parties. pro -Vided that the Provision stricken is not a material term or condition of this Aerreement. In the extent that the r .i lon is material. the Parties agree to meet and confer to amend the A r ernent such that its ri in l purpose and intent can be fulfilled. I the Parties are unable t amend the Agreement. then Payment of the utsta.ndino- balance of the Deferred Fees shall be accelerated in the manner identified in Section 4 of this Ag.,eement. 25. Counterparts. This Agreement ma y be signed and executed in one or more counterparts. each of which shall be l end are original and all of which too-ether shall constitute one Aare ment. DeliverV of an executed counterpart of a signature pace of this Agreement h , facsimile r email shall be effective deliver r f riieinalkr executed counterpart of this Agreement. 26. Time of the Essence. Time is f the essence in the performances the Parties' obligations contained herein. 7. Waiver. A failure of a Party to enforce strictl r a provision of this Agreement shall in no event be considered a Nv i rer of an v party of such provision. No waiver b v a P rt v of an F breach or default bNr the other Part shall operate as a waiver of an y succeeding breach or other default or breach b v such other Party. No 1- vaiver shall have an F effect unless it is specific. lrre t able and in \ %ruin . 28. Further Acts. In addition to the acts recited in this ASueement. the Parties agree to perform. or cause to be performed on the date of this Agreement, or thereafter. am and all such further acts as mav be real nabl F ne essar r to consummate the transactions contemplated hereb f. Each of the Parties agrees that it xvill execute and deli,%+er all such documents and instruments as tmaNr be necessary.- and appropriate to effectuate the terms of this cUreement. [SIGNATURE PAGE TO FOLLONVI 7.0 04447 384 . -7- 2015-05-05 Agenda Packet Page 159 IN WITNESS WHEREOF, this Agreement for Deferral of Development Impact Fees has been executed her the Parties as of the last date set forth below. Dated Dated: Approved as to Form Glen R. Googin, City{ Attorney{ STONE CREEK CASITAS,, LLC, a California limited liability company Chrisrnatt Corporation, a California corporation,, its Managing Mem ber ,. Name: James V. Pier] Title: President CITY OF CHULA VISTA, a chartered municipal corporation By: Name: Title: 60297.00044 \9743848.6 -- 2015-05-05 Agenda Packet Page 160 EXHIBIT A — Depiction and Description -ofProperty LEGAL DESCRIPTION Real property in the City of Gyula Vista, County of San Diego, State of Califomia, described as PARCEL 1: THE NORTHERLY 660.00 FEET OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION , TOWNSHIP 18 SOUTH, RANGE 2 WEST, SAN BERNARDINO BASE AND MERIDIAN IN THE COUNTY OF SAN DIEGO, ACCORDING TO THE UNITES STATES GOVERNMENT SURVEY,, APPROVED FEBRUARY 2 , 1820. EXCEPTING THEREFROM THE WEST RLY 958.00 FEET. ALSO EXCEPTING THEREFROM THE EASTERLY 20.00 FEET. AND ALSO EXCEPTING THEREFROM THAT PORTION LYING WFrWN THE EASTERLY 120.00 FEET OF THE W E STE R LY 1078.00 FEET OF THE NORTHERLY 3 30.0 0 FEET OF SAID SO ITH EAST QUARTER OF THE NORTHEAST QUARTER. AND ALSO EXCEPTING THEREFROM THAT PORTION! OF THE SOUTHERLY 5.00 FEET OF THE NORTHERLY 30.00 FEET OF SAID SOUTHEAST QUARTER OF THE NORTHEAST QUARTER LYING EASTERLY OF THE EASTERLY LINE OF THE WESTERLY 1083.003 FEET OF SAID SOUTHEAST QUARTER OF THE NORTHEAST QUARTER. ALSO EXCEPTING THEREFROM 1 THAT PORTION OF SAID PROPERTY DESCRIBED AS UP RCEL NO. 2 -012 iB'* IN A FINAL ORDER OF CONDEMNATION NATIOf RECORDED MAY 09, 1977 AS INSTRUMENT NEB. 7- 175526 OF OFFICIAL RECORDS. PARCEL 2: AN EASEMENT FOR ROAD AND PUBLIC DTILIrY PURPOSES, OVER, UNDER ALONG AND ACROSS THE EASTERLY 20.00 FEET OF THE NORTH HALF OF THE EAST HALF OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION] 23, TOWNSHIP 18 SOUTH, RANGE 2 WEST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO UNITED STATES GOVERNMENT TENT SUIRIIEY, EXCEPTING THEREFROM THE NORTHERLY 30.00 FEET OF SAID EASTERLY 20.00 FEET. APN: 529 - 130 -22 -00 60297.00044\9743848-6 2015 -05 -05 Agenda Packet Page 161 O Ln C6 VI C6 VI rD CD fI+ O C:) CD C:) 4& 41. L44 CPO �YN —ds asp MA IN ST 0 A P# p ip 0! %* I 'k I I I L . I i re F06 a m ke 34t d I )I AOU k pe -t J4-,, I ir dk Ip Ij r IvMAC CS) - I T I't SJ47 On I A pjlp ;C. a—AO 79 ow II 14 r 61 I IL)Arw ICI ko lk LM A 0 CM nO V d j I" C. '3 F. F- — FUVJ — PCAI H E. 1M VAP . pio.y IXCVLY fr-11 I%gj P�Jvmlft. til .N lei; 06 MO$-KtT. 001e)� 91-99, 10111P, 13344. ID 029 tp.jlt:.r. .11M m 1.1 1� — FUN - 13 �D 9 iq I?M I I AID GE5 � Olki rip LU.7 eo ;r p 41' ell will k It Ip it ItM U A* U-1 Imo' EXHIBIT B — Fate PROMISS ORY NOTE SECURED BY DEED OF TRUST The undersi ned, Stone Creek Casitas. LL C. a California limited liability} company B rr per" ; premises to past t the Cit r of Chula Vista. a chartered municipal corporation, ("'Lender""), the principal sung of S . together with interest on the unpaid principal balance at an annual rate of two percent (2%), with all principal and interest due and parable on . 2045) (the .. aturrtyr Date" This pr mis r � note CO'Note") s hall be subject t the f llowins additional provisions: lea vent Schedule: Pavments hereunder shall consist of principal and interest, full amortized over txvent y rears (the ""Repayment Term" ), payable in installments of S . each month c mmen iney on 202-5 (the ::Pa rMent Start Date"), and c ntinuina. thereafter on the same da v of each month until the Maturit y Date. when all unpaid accrued interest and principal shall be payable. All interest that has accrued prior t the Payment Start Date shall be paid in equal monthly installments over the Repayment Term i.e.. 240 equal installments) and no further interest shall accrue on said accrued interest amount: prided, however, that interest shall continue to accrue on any unpaid portion of the principal. Securit y. This Note is secured h f a Deed of Trust of even slate herewith. made bNr Borrower. as tru tor, for the benefit of Lender. as benefi iary (the "Deed of Trust"'), c verin.c.; certain read pr pert r, as therein described. Prepa vme t. This Note mar be prepaid, at any time, in whole or in part, without premium or p nalty as long a an�� principal prepa vent is accompanied h � a p Nrrnent f interest accrued to the date f pr-epa - %Y ent on the amount prepaid. Application of Pavments. Each Payment under this Note shall be credited as set forth in the paNtment schedule attached hereto as Exhibit "A," 4. Default. The occurrence of any of the following e vents shall constitute an "'Event of Default" hereunder: B rr ver "s failure to pad' any sum due under this Note 'when it becomes clue and pavable. b the occurrence of a default under the Deed of Trust. or (c) an v breach of any other promise or bli ati n In this Note or In am other instrument now or after this date securing the indebtedness evidenced in this mote. Durin an Event of Default. and after written notice has been given therefor. Lender ma v. at its option. declare this Note includina.. without limitation. all accrued interest) to be immediately due and Payable, regardless of the Maturity Date. 5. Costs of Collection. If this Note is not paid when due, vh ther n the Maturity Date r n acceleration of this Note. Borrower promises to pav all collection costs. in ludino. but not limited to, attorney fees and court costs- N.hether or not suit 1s filed on this Note. 60297.00044\974_3'848.6 2015 -05 -05 Agenda Packet Page 163 6. Waiver of Presentment. Borrower and all persons liable or to become liable on this Mote naive presentment. protest. and demand: notice of protest, demand. and dishonor: and any and all other notices or matters of a like nature. 7. Default Date of Interest. During are Event of Default, the entire unpaid principal valance shall automatically bear interest at an annual rate equal to the lesser of a five percent (.5%) orb the maximum interest rate allowed by lave. 8. Governing Law. This Dote shall be governed by and construed in accordance With the lays of the State of California. 9. LJ�. All agreements between Borrower and Lender are expressly limited, so that in no evert or contingency: whether because of the advancement of the proceeds of this Note, acceleration of maturity of the unpaid principal balance, or otherwise, shall the amount paid or agreed to be paid to Lender for the use, forbearance, or retention of the 'money to be advanced under this Note exceed the highest lawful rate permissible under applicable usury laws. If, under any circumstances; fulfillment of any provision of this Dote or the Deed of Trust securing this Note or any other agreement pertaining to this Note, after timely performance of such provision is due, shall involve exceeding the limit of validity prescribed br law that a court of competent jurisdiction deems applicable, then, ipso facto, the obligations to be fulfilled shall be reduced to the limit of such validity. If under any circumstances, Lender shall ever receive as interest an amount that exceeds the highest la wful rate, the amount that would be excessive interest shall be applied to reduce the unpaid principal balance under this Note and not to pay interest, or, if such excessive interest exceeds the unpaid principal balance under this Note, such excess shall be refunded to Borrower. This provision shall control even other provision of all agreements between Borrower and Lender. 10. Time is of the Essence. Time is of the essence with respect to all obligations of BorTower under this Dote. IN WITNESS WHEREOF, Borro wer has executed this Promissory Note Secured by Teed of Trust as of the date first written above. Date: 60297.000 \9743848.6 Borrower: STONE CREEK CASITAS, LLC, a California limited l iabi 1 it company By: Chnsmatt Corporation, a California corporation,, its Managing Member By Name: Title: .lames V. Pled President 2015 -05 -05 Agenda Packet Page 164 EXHIBIT C — Payment Schedule [To be inserted when the final Deferred Fees amount is established] 6029 7.00044 W 74 '384 8.6 2015 -05 -05 Agenda Packet Page 165 EXHIBIT D — Trust Deed RECORDING E UE TED BY AND WHEN RECORDED BAIL D UMEN'r AND TAX TATS IE T T : SAME: Sef REET ADDRESS: CITY. TArIE ZIP CODE: APN: 629-1_3'0-22-00 SPACE ABOVE THIS LINE FOR RECORDER'S USE ONLY DEED OF TRUST This feed of Trust is made as of 2015, between Stone Creek Caritas, LLC, California limited liability company, herein called ::Trustor," whose address is 303 H Street; Suite 103, Chula Vista, CA 91910, , herein called `Trustee," and the City of Chula Vista. a chartered municipal corporation, herein called `Beneficiary.- TRUSTOR IRREVOCABLY GRAFTS, TRANSFER!_., AND ASSIGNS TO TRUSTEE IN TRUST. WfTH POWER OF SALE, that certain real property in San Diego County, California (the, "Property") having assessor's parcel number 629-130-22-00, and more particularly described in Exhibit "A„ attached hereto and by this reference incorporated herein. THIS DEED OF TRUST IS MADE FOR THE PURPOSE SECUMNG: A. Performance of each obligation, covenant and agreement of Trust or herein contained; and B. Payment of the indebtedness evidenced try one promissory note of even date herewith, and any extension and renewal thereof, in the principal sure of executed by Trustor as " BorrowerI in favor of Beneficiary or order. To PROTECT THE SECURITY OF THIS DEED of TRUST, TRUSTOR AGREES: 1. To keep the Property in good condition and repair; not to remove or demolish any building thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting the Property or requiring any alterations or improvements to be made thereon; not to commit or permit waste thereof; not to commit, suffer or permit any act upon the Property in violation of 6029T00044\9743848,6 2015 -05 -05 Agenda Packet Page 166 law ". to cultivate. irrigate. fertilize. fumigate. prune and do all other acts which from the character or use of the Propert r rna f be reasonably necessanr. the specific enumerations herein not exludin the eneral. To provide, maintain and deliver to Beneficiary insurance t and with loss pad *able to Beneficiarv. The amount collected under anNr fire or other insurance policv ma v be applied b f Beneficia.r v upon anv indebtedness secured hereby and in such order as Beneficiary rna � determine, or at option of Benef iciar � the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or wai ve anv default or notice of default hereunder or invalidate anv act done pursuant to such notice. To appear in and defend anNi action or proceedinQ purportiney to affect the se unit r hereof or the riaahts or powers of Beneficiary or Tr-ustee: and to pav all costs and expenses. includinsi cost of evridence of title and attorne Y s fees in a reasonable sum. in aver uch action or proc ding in which Benef icia.r r or Trustee mar appear, and in ant suit brow ht by Beneficiary to foreclose this feed. 4. To pat: at lust ten dais before delinquency all taxes and assessments affectincy the property. includinc assessments on appurtenant eater stock: when dine, all encumbrances. char es and liens. with interest, on the property or any part thereof which appear to be prior or superior hereto: all costs. fees and expenses of this Trust. Should Trustor fail to make any pa vent or to do am act as herein provided, then Beneficiary or Trustee. but without obluzation so to do. without notice to or demand upon Trustor, and %vithout releasing Trustor from am obligation hereof. rna v: make or do the same in such manner and to such extent as either may deem necessary to protect the ecurity hereof. Beneficiar -v or Trustee being authorized to enter upon the propert f for such purposes: appear in and defend anv action or proceeding purporting to affect the security hereof or the rihts or peers of Beneficiary or Trustee, purchase, contest or compromise any encumbrance, charge or lien ,%rhich in the jud neat of either- appears to he p i r or superior hereto.- and. in exercising anv such powers. pa v necessary expenses, employ counsel and pay such reasonable fees. 5. To pa v immediateiv and without demand all sums so expended bNr Beneficiary or Trustee. with interest from date of expenditure at the amount allowed bNr law in effect at the date hereof and to pat for am statement provided for b � law in effect at the date hereof re�ardin the obligation secured hereb f an v amount demanded bar the Beneficiar F not to exceed the maximum allowed by law at the time %,%rhen said statement is demanded. 6. That am a ward of damages in connection with any condemnation for public use of or injury to the property or any part thereof is hereb \t assigned and shall be paid to Beneficiary who rnav a pl r or release such monies received by it in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance. 7. That bNr accepting pa vent of anv sum secured hereby after its clue date. l eneficiar v does not waive its right either to require prompt pa \rment when clue of all other sums so secured or to declare default for failure so to past. 60297.00044.E -38.8.6 2015 -05 -05 Agenda Packet Page 167 8. That at an -v time or from time to tire. without liabilit y therefor and without notice. upon mitten request of Beneficiary and presentation of this Deed and said note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured h reb v, Trustee ma v: reconv ev anN? part of the property: consent to the marking of any reap or plat thereof: join in granting anv easement thereon; or join in any extension acyreement or a.n # agreement subordinating the lien or charge hereof 9. That upon written request of beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention and upon payment of its fees, Trustee shall reconvey, without warranty, the property then field hereunder. The recitals in such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be described as "the person or persons legally entitled thereto." Five years after issuance of such full reconveyance, Trustee tray destroy said note and this Deed (unless directed in such request to retain therm). 10. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement h r and r, Beneficiary may declare all sums secured hereby immediately due and payable by deliver to Trustee of written declaration of default and demand for sale and Of Titten notice of default and of election to cause the Property to be sold, which notice Trustee shall cause to be filed led f r record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby. After the lapse of such time as may Mien be required by law following the recordation of said notice of default. and notice of sale having been cTiven as then required by lave, Trustee; without demand on Tru tor, shall sell the Property at the time and place fixed b y it in said notice f sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States. payable at time of sale. Trustee may postpone sale of all or any portion of the Property b y public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed b y the preceding postponement. Trustee shall deliver to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trust r, "frustee, or l errefi i r as hereinafter defined, may purchase at such sale. After deducting all costs. fees and expenses of Trustee and of this Trust, including cost of evidence of title i connection with sale, Trustee hall apply the proceeds f l to payment of all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by lave in effect at the plate hereof; all other sums then secured hereby; and the remainder, if n y, to the person or persons legally entitled thereto. 11. Beneficiary, or any successor in ownership of any indebtedness secured hereby. may from time to time. by instrument in ntin , substitute a successor r successors to any Trustee named herein or aetincy hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said 6029T00044\9743848.6 2015 -05 -05 Agenda Packet Page 168 propertr is situated. shall be conclusive proof proper substitution of such successor Trustee r Trustees: "rho shall. without conve Fancc from the Trustee predecessor, succeed to all its title: estate. ricyhts. poNvers and duties. Said instrument must contain the name of the oriarinal Tru tor. Trustee and Beneficiary hereunder. the pool: and pace xvhere this Deed is recorded and the name and address of the new Trustee. 12. That this Deed applies to. inures to the benefit of. and binds all parties hereto. their heirs. legatees. devisees. administrators. executors. successors and assis. The terra neficiarr shall mean the o \timer and holden including pledgees. of the note secured herebv. -hether or not named as l enef ici r v herein. I That Trustee accepts this Trust hen this Deed, duly executed and acknowledged. is made a public record as provided by la w. Trustee is not obliceated to notify ant m hereto of pending sale under an � other Deed of Trust or of an�r action or proceedin in which Trustor. l eneficiar-%.r or Trustee shall be a part{ unless brought b y Trustee. 14. This Deed ofTrust shall be governed by and construed in accordance Xvith the laws of the State of California. fN WITNESS 'WHEREOF, Trustor has caused this Deed of Trust to be executed as of the d a # and =ear first written above. "T1 STOR' STONE CREEK C SIT S. hLC. a California limited liability compan r 1r: Chrisrnatt Corporation. a California corporation. its l anacgina, Member l v: Name: James V. Fieri Title: President 60297.00044\974.31848.6 2015 -05 -05 Agenda Packet Page 169 STATE OF CALIFORNIA ) COUNTY OF ) On , before nee, notary public; personally appeared vho proved to me bn the basis of satisfactory evidence) names is /are subscribed to the within instrument and he she they executed . the same in his/her /their authorized his/her /their signature(s) on the instrument the persons, or the person(s) acted, executed the instrument. a M to be the person(s) whose acknowledged to rye that eapaeity ies , and that by �ntit y upon behalf of which the I eertlof -r under PENALTY of PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS nay band and official seal. Signature 6029 7.00044 \9743"848.6 (SEAL) 2015 -05 -05 Agenda Packet Page 170 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A DEVELOPMENT IMPACT FEE DEFERRAL AGREEMENT WITH STONE CREEK CASITAS, LLC. FOR APPROXIMATELY $1.7 MILLION OF FEES IN CONNECTION WITH A 97 UNIT APARTMENT PROJECT ON MAIN STREET NEAR WALNUT DRIVE WHEREAS, investment in western Chula Vista has been a challenge for investors and developers due to the high equity requirements of the lending industry; and WHEREAS, to help address this challenge, on April 14, 2015 the City Council amended the Chula Vista Municipal Code ( "CVMC ") to add chapter 3.56 that allows the deferral of development impact fees in western Chula Vista via a fee deferral agreement; and WHEREAS, pursuant to the City's new authority under the CVMC, City staff has recommended that the City enter into a Fee Deferral Agreement ( "Agreement ") with Stone Creek Casitas LLC ( "Developer ") with respect to its proposed 97 unit Stone Creek Casitas apartment project to be located at 3 875 Main Street ( "Project "); and WHEREAS, the proposed Project will be of public benefit because it will provide new, highly amenitized, market rate rental housing of a type that is needed in the southwestern area of the City; and WHEREAS, City staff reviewed the Project pro forma and determined that the Project was not feasible without assistance to maintain Project quality and meet the increased equity requirements of the Project lender; and WHEREAS, the Agreement provides this needed assistance by allowing for the deferral of portions of the Project's Western Chula Vista Transportation Development Impact Fee, the Project's Public Facilities Development Impact Fee, and the Project's Western Chula Vista Park and Acquisition Development Impact Fee, with a total fee deferral amount of approximately $1.7 million; and WHEREAS, the terms of the Agreement are consistent with the requirements of the CVMC, including a maximum thirty year repayment period, interest accrual at a fair market rate of two percent (2 %) per annum, no payments due for the first 10 years of the agreement, with repayment secured by a deed of trust recorded against the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that: 60297.00044 \9747131.2 2015 -05 -05 Agenda Packet Page 171 Resolution No. Page 2 1. In accordance with CVMC Sections 3.56.010 and 3.56.030(C), the City Council finds that the Fee Deferral Agreement with Stone Creek Casitas LLC will provide a significant public benefit by helping to facilitate the development of high quality housing that is needed in Western Chula Vista which might not otherwise constructed; 2. In accordance with CVMC Section 3.56.010 and 3.56.030(C), the City Council finds that it would be financially infeasible to construct the Project as proposed absent such a deferral; 3. In accordance with CVMC Section 3.56.030(A), the City Council waives any application submittal requirements for such a deferral; 4. The City Council approves the Fee Deferral Agreement in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the office of the City Clerk, and authorizes and directs the Mayor to execute same; and 5. The findings and actions in this Resolution shall be effective on May 22, 2015, the effective date of Chapter 3.56 of the CVMC. Presented by: Kelly Broughton Development Services Director 60297.00044 \9747131.2 Approved as to form by: Glen R. Googins City Attorney 2015 -05 -05 Agenda Packet Page 172 .� Emma CITY OF CHULAVISTA File #: 15 -0106, Item #: 9. City of Chula Vista Staff Report CONSIDERATION OF ADOPTING A SPECIAL EVENT SPONSORSHIP AND ENDORSEMENT POLICY RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE CITY OF CHULA VISTA SPECIAL EVENT SPONSORSHIP AND ENDORSEMENT POLICY RECOMMENDED ACTION Council adopt the resolution. SUMMARY At the request of Council, the City Manager's Office has created a draft policy to formalize Chula Vista's administrative process regarding the classification of special events as Sponsored or Endorsed by the City of Chula Vista. This policy will provide guidance for staff and event planners on the process for collaborating with the City. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378(b)(2) of the State CEQA Guidelines because it involves only adoption of a policy that governs how Special Event Sponsorship and Endorsements are issued and therefore is an organizational or administrative activity of government that will not result in a direct or indirect physical change in the environmental; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. BOARD /COMMISSION RECOMMENDATION Not applicable DISCUSSION The "City of Chula Vista Special Event Sponsorship and Endorsement Policy" was created to provide a process for approving and granting Special Event Sponsorship or Endorsement. The City of Chula Vista is committed to holding special events that promote Chula Vista and attract residents and visitors. In the last three years, the number of events held in the City has increased 25 percent. Two major events, HarborFest and Starlight Parade, have attracted tens of thousands to the City. Sponsorship A City Sponsored event would meet the following criteria: require Councilmember leadership of an event being proposed for Sponsorship to Council; a majority of the City Council must vote to "Sponsor" a special event. However, if an appropriation above already budgeted amounts is City of Chula Vista Page 1 of 2 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by Le istarTM age 173 File #: 15 -0106, Item #: 9. necessary, Sponsorship would then require a 4 /5th vote of the City Council. The total allocation for Sponsored special events shall be determined each budget year through the budget approval process. The City Council has discussed sponsoring three events in the coming fiscal year, HarborFest, the Starlight Parade and a potential community event celebrating our cultural diversity. If Council adopts the Special Events Policy, the Manager's proposed budget for FY16 will include $40,000 for sponsorship of the three events. Endorsement If a Special Event does not fit policy criteria for endorsement, the City Council may decide to endorse the special event by a majority vote. Endorsed events would receive expedited, proactive staff assistance in processing needed approvals for the event and the event marketing materials would be permitted to display the City name and logo. DECISION -MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500 -foot rule found in California Code of Regulations section 18705.2 (a)(11), is not applicable to this decision. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City's Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The proposed actions support the Economic Vitality strategy to promote an environment for residents and businesses to prosper and the Connected Community Strategy promotes providing opportunities that enrich the community's quality of life. The City is committed to attracting and supporting large -scale community events in the City that support the local economy and enrich the community's quality of life. CURRENT YEAR FISCAL IMPACT A total of $15,000 from the General Fund was allocated for the December 6, 2014 Starlight Parade. No additional budget appropriations are requested in the current fiscal year. ONGOING FISCAL IMPACT Funds for future City- sponsored special events as proposed by the "City of Chula Vista Special Event Sponsorship and Endorsement Policy" will be considered as part of the annual budget process. ATTACHMENTS City of Chula Vista Special Event Sponsorship and Endorsement Policy Staff Contact: Olga Berdial, Special Events Coordinator City of Chula Vista Page 2 of 2 2015 -05 -05 Agenda Packet Printed on 4/30/2015 powered by Le istarTM age 174 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: CITY OF CHULA VISTA SPECIAL POLICY EFFECTIVE EVENT SPONSORSHIP AND ENDORSEMENT NUMBER DATE PAGE POLICY 1 OF 4 ADOPTED BY: (Resolution No.) DATED: 4/21/2015 AMENDED BY: Resolution No. (date of resolution) BACKGROUND The City of Chula Vista is committed to holding special events that promote Chula Vista and attract residents and visitors. It is the City of Chula Vista's intent to further promote events held within the City. This Policy addresses the processing of requests for City Sponsorship or Endorsement. PURPOSE The purpose of the City of Chula Vista's Sponsorship of Special Events is to enhance the vitality, quality of life, community engagement and economic prosperity of Chula Vista through the support of large -scale special events held within the City. The purpose of the City of Chula Vista's Endorsement of Special Events is to help support community events held within the City. City Endorsement will increase the quality of the event and demonstrate the Council's commitment to Sponsoring and Endorsing activities that support and celebrate our vibrant community. This Special Event Sponsorship and Endorsement policy is declaratory of Chula Vista's existing administrative practice regarding the classification of events as Sponsored or Endorsed by the City of Chula Vista. This policy will provide guidance for staff and event planners as to the process for collaborating with the City. POLICY A "Sponsored" event is defined as a special event in which the City provides underwriting, significant staff support and /or services as well as funding from the General Fund. A majority of the City Council must vote to "Sponsor" a special event unless an appropriation is necessary, which requires a 4 /51h vote of the City Council. An "Endorsed" event is defined as a special event in which the City helps facilitate the Special Event process with staff support at the discretion of the City Manager or his /her designee. Both Sponsored and Endorsed special events may use the City name and logo in their promotions, with prior approval from the City Manager or his /her designee before printing /dissemination. Sponsored Events A request to have the City sponsor an event must undergo review to determine its relevance and aaDromiateness to the Citv's Special Event Dumose. The Citv Council will review the merits of the 2015 -05 -05 Agenda Packet Page 175 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: CITY OF CHULA VISTA SPECIAL POLICY EFFECTIVE EVENT SPONSORSHIP AND ENDORSEMENT NUMBER DATE PAGE POLICY 20F4 ADOPTED BY: (Resolution No.) DATED: 4/21/2015 AMENDED BY: Resolution No. (date of resolution) requested Sponsorship, keeping in mind the criteria listed above, to determine whether the event fits the overall conditions of a Sponsored event. The City reserves the right to reject or conditions its involvement in its sole discretion, subject to applicable local, state and federal laws. Furthermore, the following criteria will be used when considering requests for City of Chula Vista Sponsorship: By majority vote, the City Council may provide sponsorship of Special Events that are brought forth by a City Councilmember, who is assuming responsibility as the event "leader." In addition, to be considered for City Council Sponsorship, a Councilmember should request sponsorship at least six months prior to the actual date of the event. Sponsored events are major public events that attract large numbers of visitors and community participants to the City. Sponsored events generate significant, documented levels of financial and /or promotional return to the City. Examples of past City Sponsored events include HarborFest and the Starlight Parade. Sponsored events should celebrate our City's cultural diversity and rich heritage. Budget for Sponsored Special Events The City Manager's proposed budget shall provide a recommended level of funding for special events based on the criteria noted above. These funds will be used to partially underwrite sponsored events for the upcoming fiscal year. Each sponsored event Council "leader ", as noted above, will work with staff to have a budget set forth for the event. The Finance Department will establish a deposit account for each event and provide the City Council a final accounting of the City's sponsorship following the event. Responsibility for Sponsored Events Responsibility for each sponsored event will be divided: The City Manager or his /her designee will be responsible for overall City participation in event coordination, staff support and the establishment of a budget for each event. Events may require contracting an outside professional events coordinator to help with planning and logistics. The cost of the outside professional events coordinator shall be included in the budget for each sponsored event. If the outside events coordinator is under City contract, they will be retained and managed by the City Manager or his /her designee. • If fundraising is necessary, a designated Councilmember will be the lead for City participation in the raising of funds (through sponsorships or direct donations) to make up the difference between the City budgeted allocation of funds and the actual event cost. 2015 -05 -05 Agenda Packet Page 176 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: CITY OF CHULA VISTA SPECIAL POLICY EFFECTIVE EVENT SPONSORSHIP AND ENDORSEMENT NUMBER DATE PAGE POLICY 30F4 ADOPTED BY: (Resolution No.) DATED: 4/21/2015 AMENDED BY: Resolution No. (date of resolution) Each event will require close coordination and regular communication among responsible parties. Endorsed Events A request to have the City endorse an event must undergo review to determine its relevance and appropriateness to the City's Special Events purpose. The City will review the merits of the requested endorsement, keeping in mind the criteria listed above, to determine whether the event fits the overall conditions of an Endorsed event. The City reserves the right to reject or condition its involvement in its sole discretion, subject to applicable local, state and federal laws. At his /her discretion the City Manager or his /her designee may provide endorsement of Special Events that fall into one of the following categories: Special Events sponsored by governmental and educational institutions Special Events sponsored by organizations that support the City of Chula Vista's operations (such as the Friends of the Library, Fire Fighters Foundation, Friends of Chula Vista Parks and Recreation, Police Activity League) In addition, to be considered for City Endorsement, an event applicant should request endorsement at least three months prior to the actual date of the event. If an event fails to meet the criteria listed above, the event can be proposed for endorsement through the City Council. A majority of the City Council must vote to "Endorse" a special event. 2015 -05 -05 Agenda Packet Page 177 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: CITY OF CHULA VISTA SPECIAL POLICY EFFECTIVE EVENT SPONSORSHIP AND ENDORSEMENT NUMBER DATE PAGE POLICY 40F4 ADOPTED BY: (Resolution No.) DATED: 4/21/2015 AMENDED BY: Resolution No. (date of resolution) 2015 -05 -05 Agenda Packet Page 178 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING THE CITY OF CHULA VISTA SPECIAL EVENT SPONSORSHIP AND ENDORSEMENT POLICY WHEREAS, the City of Chula Vista is actively engaged in establishing signature community events that attract residents and visitors; and WHEREAS, it is the City of Chula Vista's goal to enhance the vitality, quality of life and economic prosperity of Chula Vista through the support of special events within the city; and WHEREAS, the purpose of the City of Chula Vista's Sponsorship or Endorsement of special events is to help support community events that celebrate our city's cultural diversity and rich heritage; and WHEREAS, the City of Chula Vista's special events program is continually expanding as more event planners and residents are encouraged to hold community events within Chula Vista; and WHEREAS, the City of Chula Vista Special Event Sponsorship and Endorsement Policy provides guidance for staff and event planners on the processes for collaborating with the City. NOW THEREFORE BE IT RESOLVED that the City Council of the City of Chula Vista hereby adopts the City of Chula Vista Special Event Sponsorship and Endorsement Policy. Presented by Approved as to form by Gary Halbert City Manager Glen R. Googins City Attorney 2015 -05 -05 Agenda Packet Page 179 .� Emma CITY of CHULAVISTA File #: 15 -0185, Item #: 10. City of Chula Vista Staff Report CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (a) Name of case: Chris Shilling, et al. v. City of Chula Vista, et al., San Diego Superior Court, Case No. 37- 2015- 00006097- CU- MC -CTL City of Chula Vista 2015 -05 -05 Agenda Packet Page 1 of 1 Printed on 5/1/2015 powered b LegistarTM Page M