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Agenda Packet 2017_05_23
May 23, 2017City Council Agenda FIRE STATION PRESENTATION BY CASTLE PARK HIGH S CHOOL STUDENTS IN THE ARCHITECTURE, CONSTRUCTION, ENGINEER (ACE) MENTORS PROGRAM 17-0221C.17-0221 CONSENT CALENDAR (Items 1 - 7) 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. WRITTEN COMMUNICATIONS Memoranda from Councilmember Diaz requesting excused absences from the May 9, and May 16, 2017 City Council Meetings. 17-02141.17-0214 Council excuse the absences. Staff Recommendation: ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 19M (FREEWAY COMMERCIAL 2), AUTHORIZING THE LEVY OF A SPECIAL TAX IN SUCH COMMUNITY FACILITIES DISTRICT (SECOND READING AND ADOPTION) 17-02222.17-0222 Development Services Department Department: The Project was adequately covered in previously adopted/certified Final Second Tier Environmental Impact Report (EIR 02-04) and Addenda to EIR 02-04 for the Otay Ranch Planning Area Twelve Freeway Commercial Sectional Planning Area (SPA) Plan. Environmental Notice: Council adopt the ordinance. Staff Recommendation: Page 2 City of Chula Vista Printed on 5/18/2017 2017-05-23 Agenda Packet Page 2 May 23, 2017City Council Agenda ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 19.14 OF THE CHULA VISTA MUNICIPAL CODE (CVMC) BY ADDING A NEW SECTION CREATING AN INITIATION PROCESS FOR AMENDMENTS TO THE GENERAL PLAN, SECTIONAL PLANNING AREA PLANS, GENERAL DEVELOPMENT PLANS, SPECIFIC PLANS, PRECISE PLANS (LAND USE PLANS) AND FOR REZONING (SECOND READING AND ADOPTION) 17-02233.17-0223 Development Services Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. In addition, notwithstanding the foregoing, the “Project” also qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Environmental Notice: Council adopt the ordinance. Staff Recommendation: ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 2.36, “HUMAN RELATIONS COMMISSION” (SECOND READING AND ADOPTION) 17-02244.17-0224 City Manager Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15606(c) (3) no environmental review is required. Environmental Notice: Council adopt the ordinance. Staff Recommendation: Page 3 City of Chula Vista Printed on 5/18/2017 2017-05-23 Agenda Packet Page 3 May 23, 2017City Council Agenda RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING COUNCIL COMMITMENT AND SUPPORT FOR THE FIRE DEPARTMENT APPLICATION FOR THE 2016 DEPARTMENT OF HOMELAND SECURITY (DHS), FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) STAFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE (SAFER) GRANT TO HIRE 12 FIREFIGHTERS 17-00795.17-0079 Fire Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council adopt the resolution. Staff Recommendation: A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACKNOWLEDGING RECEIPT OF, AND AMENDING, COUNCIL POLICY NO. 220-01, THE CITY OF CHULA VISTA INVESTMENT POLICY AND GUIDELINES; AND DELEGATING INVESTMENT ACTIVITY AUTHORITY TO THE DIRECTOR OF FINANCE/TREASURER B. INVESTMENT REPORT FOR THE QUARTER ENDED MARCH 31, 2017 17-01906.17-0190 Finance Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council adopt the resolution and accept the report. Staff Recommendation: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN UNCOLLECTIBLE ACCOUNTS RECEIVABLE WRITE-OFF POLICY 17-01927.17-0192 Finance Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council adopt the resolution. Staff Recommendation: Page 4 City of Chula Vista Printed on 5/18/2017 2017-05-23 Agenda Packet Page 4 May 23, 2017City Council Agenda 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. CONSIDERATION OF WAIVING IRREGULARITIES IN THE BID RECEIVED FOR THE “MANHOLE REHABILITATION PROGRAM, FISCAL YEAR 2015/2016 (SW297)” PROJECT PER CITY CHARTER SECTION 1009 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS; WAIVING MINOR BID IRREGULARITIES; AWARDING A CONTRACT FOR THE “MANHOLE REHABILITATION PROGRAM, FISCAL YEAR 2015/2016 (CIP# SW297)” PROJECT TO SANCON ENGINEERING, INC. IN THE AMOUNT OF $226,067.07; APPROPRIATING $130,000 FROM THE AVAILABLE BALANCE OF THE SEWER FACILITY REPLACEMENT FUND TO CAPITAL IMPROVEMENT PROJECT SW297; WAIVING CITY COUNCIL POLICY NO. 574-01; AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE ALL CHANGE ORDERS (4/5 VOTE REQUIRED) 16-04668.16-0466 Public Works Department Department: The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines. Environmental Notice: Council conduct the public hearing and adopt the resolution. Staff Recommendation: 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. Page 5 City of Chula Vista Printed on 5/18/2017 2017-05-23 Agenda Packet Page 5 May 23, 2017City Council Agenda CONSIDERATION OF THE ADOPTION OF A SMALL BUSINESS LOAN PROGRAM FOR BUSINESSES ON THIRD AVENUE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CREATING THE CHULA VISTA THIRD AVENUE SMALL BUSINESS REVOLVING LOAN FUND PROGRAM 17-01589.17-0158 Economic Development Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council adopt the resolution. Staff Recommendation: PRESENTATION OF THE CITY MANAGER’S PROPOSED BUDGET FOR FISCAL YEAR 2017/2018 RESOLUTION OF THE CITY COUNCIL/SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY/ HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING THE CITY MANAGER’S PROPOSED OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR FISCAL YEAR 2017/2018 AS THEIR PROPOSED BUDGETS, RESPECTIVELY, AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING FOR FINAL CONSIDERATION AND ADOPTION OF SAME 17-017010.17-0170 Finance Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council/Successor Agency/Housing Authority hear the presentation, and, provide comments and proposed changes. If Council is prepared to approve the budget, with or without modifications, as the City Council Proposed Budget, the City Council/Successor Agency/Housing Authority may adopt the resolution and set the time and place for a public hearing for final consideration and adoption of the budget. Staff Recommendation: Page 6 City of Chula Vista Printed on 5/18/2017 2017-05-23 Agenda Packet Page 6 May 23, 2017City Council Agenda CONSIDERATION OF APPROVING A LICENSE AND FACILITY OVERSIGHT AGREEMENT TO OPERATE A CULTURAL ARTS SPACE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LICENSE AND FACILITY OVERSIGHT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND FRANCISCO GARCIA-VELASQUEZ, DBA THE INDUSTRY, TO OPERATE A CULTURAL ARTS SPACE ON AN UNIMPROVED CITY-OWNED PARCEL LOCATED AT 224 THIRD AVENUE 17-017111.17-0171 Development Services Department Department: The Project qualifies for a Class 32 Categorical Exemption pursuant to Section 15332 (Infill Development Projects) of the California Environmental Quality Act State Guidelines. Environmental Notice: Council adopt the resolution. Staff Recommendation: CITY MANAGER’S REPORTS MAYOR’S REPORTS Ratification of appointment of Patrick MacFarland to the Housing Advisory Commission. 17-022512.17-0225 Consideration of appointment of a voting delegate and alternates for the 2017 League of California Cities Annual Conference, to be held in Sacramento, September 13 through 15. 17-019813.17-0198 COUNCILMEMBERS’ COMMENTS ADJOURNMENT to the Regular City Council Meeting on June 6, 2017, 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. Page 7 City of Chula Vista Printed on 5/18/2017 2017-05-23 Agenda Packet Page 7 May 23, 2017City Council Agenda 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. Most Chula Vista City Council meetings, including public comments, are video recorded and aired live on AT&T U-verse channel 99 (throughout the County), on Cox Cable channel 24 (only in Chula Vista), and online at www.chulavistaca.gov. Recorded meetings are also aired on Wednesdays at 7 p.m. (both channels) and are archived on the City's website. Sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online. Page 8 City of Chula Vista Printed on 5/18/2017 2017-05-23 Agenda Packet Page 8 City of Chula Vista Staff Report File#:17-0131, Item#: A. EMPLOYEE SERVICE RECOGNITION HONORING STAFF WITH MILESTONE SERVICE ANNIVERSARIES City of Chula Vista Printed on 5/18/2017Page 1 of 1 powered by Legistar™2017-05-23 Agenda Packet Page 9 City of Chula Vista Staff Report File#:17-0186, Item#: B. PRESENTATION BY AQUATICA SAN DIEGO VICE PRESIDENT CARLOS CUEVAS REGARDING SEAWORLD'S WATER PARK AND ITS FIFTH ANNIVERSARY City of Chula Vista Printed on 5/18/2017Page 1 of 1 powered by Legistar™2017-05-23 Agenda Packet Page 10 City of Chula Vista Staff Report File#:17-0221, Item#: C. FIRE STATION PRESENTATION BY CASTLE PARK HIGH SCHOOL STUDENTS IN THE ARCHITECTURE, CONSTRUCTION, ENGINEER (ACE) MENTORS PROGRAM City of Chula Vista Printed on 5/18/2017Page 1 of 1 powered by Legistar™2017-05-23 Agenda Packet Page 11 City of Chula Vista Staff Report File#:17-0214, Item#: 1. WRITTEN COMMUNICATIONS Memoranda from Councilmember Diaz requesting excused absences from the May 9, and May 16, 2017 City Council Meetings. RECOMMENDED ACTION Council excuse the absences. City of Chula Vista Printed on 5/18/2017Page 1 of 1 powered by Legistar™2017-05-23 Agenda Packet Page 12 2017-05-23 Agenda Packet Page 13 2017-05-23 Agenda Packet Page 14 City of Chula Vista Staff Report File#:17-0222, Item#: 2. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 19M (FREEWAY COMMERCIAL 2), AUTHORIZING THE LEVY OF A SPECIAL TAX IN SUCH COMMUNITY FACILITIES DISTRICT (SECOND READING AND ADOPTION) RECOMMENDED ACTION Council adopt the ordinance. SUMMARY On April 11, 2017, the City Council approved the Resolution of Intention to Form Community Facilities District No. 19M (Freeway Commercial 2) (“CFD No. 19M”) (Resolution 2017-051) and set the public hearing for May 16, 2017. CFD No. 19M will fund the maintenance and replacement of (a) landscaping, including, but not limited to, trees, shrubs, grass, other ornamental vegetation located in or on slopes, parkways and medians; (b) facilities that are directly related to storm water conveyance, including, but not limited to pipes and drainage inlets, the Poggi Canyon channel and detention basin or parks; (c) walls and fencing; and (d) parks. The public hearing and adoption of the two resolutions and the ordinance above, will continue the formal proceedings leading to the establishment of CFD No. 19M and authorization of the levy of the special tax. ENVIRONMENTAL REVIEW Environmental Notice The Project was adequately covered in previously adopted/certified Final Second Tier Environmental Impact Report (EIR 02-04) and Addenda to EIR 02-04 for the Otay Ranch Planning Area Twelve Freeway Commercial Sectional Planning Area (SPA) Plan. Environmental Determination The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project was adequately covered in the previously adopted/certified Final Second Tier Environmental Impact Report (EIR 02- 04) and Addenda to EIR 02-04 for the Otay Ranch Planning Area Twelve Freeway Commercial Sectional Planning Area (SPA) Plan. Thus, no further environmental review or documentation is necessary. City of Chula Vista Printed on 5/18/2017Page 1 of 8 powered by Legistar™2017-05-23 Agenda Packet Page 15 File#:17-0222, Item#: 2. BOARD/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION On January 13, 1998, the City Council adopted the “City of Chula Vista Statement of Goals and Policies regarding the establishment of Community Facilities Districts” (the “Goals and Policies”). This document establishes the use of CFDs as a public financing mechanism for (1) the construction and/or acquisition of public infrastructure, and (2) the financing of authorized public services. Taxes levied by maintenance CFDs, such as CFD No. 19M, are currently excluded from the 2% maximum tax criterion set forth in the Goals and Policies. On April 28, 1998, Council, acting under its Charter authority, enacted the “Chula Vista Community Facilities District Ordinance” (the “Ordinance”). The Ordinance adopted the Mello-Roos Act with modifications to accomplish the following: (1) incorporate all maintenance activities authorized by the “Landscaping & Lighting Act of 1972” (the “1972 Act”); (2) include certain maintenance activities not listed in the Mello-Roos Act or the 1972 Act; and (3) establish an operating reserve fund for open space districts. Village II Town Center, LLC and SunRanch Capital Partners, LLC (collectively referred to as the “Developer”) have requested that the City conduct proceedings to consider the approval of the establishment of CFD No. 19M covering that area within Otay Ranch known as Freeway Commercial 2. Freeway Commercial 2 is located north of the Otay Ranch Town Center at the Intersection of Town Center Drive and Olympic Parkway and consists of approximately thirty-six (36) acres. The conditions of approval of the tentative map for Freeway Commercial 2 require that said CFD be formed prior to approval of the final subdivision map. CFD No. 19M will fund the maintenance and replacement of (a) landscaping, including, but not limited to, trees, shrubs, grass, other ornamental vegetation located in or on slopes, parkways and medians; (b) facilities that are directly related to storm water conveyance, including, but not limited to pipes and drainage inlets, the Poggi Canyon channel and detention basin or parks; (c) walls and fencing; and (d) parks and trails. The City has retained the services of NBS Government Finance Group (“NBS”) as special tax consultant and Best, Best and Krieger, LLP as legal counsel to provide assistance during the formation proceedings, including the preparation of this report and associated resolutions and ordinance. CFD No. 19M will provide the necessary funding for the operation and maintenance of public landscaping areas and public park amenities. On an annual basis, the property owners within CFD No. 19M will have to pay a “special tax” that will be collected with their property taxes or via direct billing. All expenses related to the administration of CFD No. 19M, including levying and collecting the special taxes, are also funded from these special taxes. Required resolutions were adopted at the meeting of the City Council on April 11, 2017 to initiate the proceedings to establish CFD No. 19M and the boundary map of the proposed CFD No. 19M (the “Boundary Map”) was recorded with the San Diego County Recorder’s Office at least 15 days prior to City of Chula Vista Printed on 5/18/2017Page 2 of 8 powered by Legistar™2017-05-23 Agenda Packet Page 16 File#:17-0222, Item#: 2. this public hearing. Tonight’s action will continue the formal proceedings to establish CFD No. 19M. Area of Benefit The proposed boundaries of CFD No. 19M encompass parcels located within Otay Ranch known as Freeway Commercial 2. The area is approximately thirty-six (36) acres located just south of Olympic Parkway between SR-125 and Eastlake Parkway and north of Otay Ranch Town Center. The Developer owns 100% of the property within the proposed boundaries of CFD No. 19M. The project is proposed for approximately 600 multi-family units, 15,000 square feet of mixed-use commercial space, 300 hotel rooms in two hotels, and a two-acre highly-amenitized public park. The Boundary Map was approved by Council on April 11, 2017 by Resolution 2017-050 and filed with the San Diego County Recorder’s Office on April 18, 2017.A reduced copy of the Boundary Map is presented in Attachment 1. Cost Estimate The estimated annual budget for CFD No. 19M,included with Attachment 2,is approximately $299,560.This budget includes $268,246 for landscape, walls and fencing, and a highly-amenitized park; and $11,314 that is set aside for the replacement of the amenities as they reach the end of their useful life. In addition, the budget includes $20,000 for CFD administration (e.g. preparing reports, levying and collecting taxes, public assistance, etc.) by the Finance Department or their designee. Proposed Special Tax and CFD Report A copy of the CFD Report - Community Facilities District No. 19M (Freeway Commercial 2) (the “CFD Report”) prepared by the Special Tax Consultant, NBS Government Finance Group, is included as Attachment 2, and is on file and available for public review in the City Clerk's Office. This report incorporates the "Rate and Method of Apportionment for City of Chula Vista Community Facilities District No. 19M (Freeway Commercial 2)" (“RMA”) (previously approved by Council on April 11, 2017) that establishes the procedures for levying the special taxes in CFD No. 19M. The special tax rates and methodology for levying the annual special tax are described in the CFD Report and enumerated in the RMA. All capitalized terms used below and not defined in this statement shall have the meanings given to such terms in the RMA. CFD No. 19M has six proposed categories of taxable property, as follows: Single Family Attached Property with Density ≤19 DU/acre Residential property consisting of one or more Dwelling Unit(s) that may or may not share common walls with one or more other Dwelling Unit(s), including, but not limited to, duplexes, triplexes, townhomes, and condominiums with a density of 19 or fewer Dwelling Units per acre. Single Family Attached Property with Density >19 DU/acre Residential property consisting of one or more Dwelling Unit(s) that may or may not share common walls with one or more other Dwelling Unit(s), including, but not limited to, duplexes, triplexes, townhomes, and condominiums with a density of greater than 19 Dwelling Units per acre. Multi-Family Property Residential Property consisting of two or more for-rent Dwelling Units that share common walls, including, but not limited to, apartments and Residential Property that are not for sale to an end user and are under common management. Non-Residential Property Developed property for which a building permit(s) has been issued for a structure or structures for non-residential use, excluding Hotel Property. Hotel Property Developed property for which a building permit(s) has been issued for purposes of constructing one or more structures comprising of individual sleeping or living units for the accommodation of transient guests. Undeveloped Property Parcels not classified as Developed Property. City of Chula Vista Printed on 5/18/2017Page 3 of 8 powered by Legistar™2017-05-23 Agenda Packet Page 17 File#:17-0222, Item#: 2. Single Family AttachedProperty with Density≤19 DU/acre Residential property consisting of one or more Dwelling Unit(s)that may or may not share common walls with one or moreother Dwelling Unit(s), including, but not limited to, duplexes,triplexes, townhomes, and condominiums with a density of 19 orfewer Dwelling Units per acre. Single Family Attached Property with Density >19 DU/acre Residential property consisting of one or more Dwelling Unit(s) that may or may not share common walls with one or more other Dwelling Unit(s), including, but not limited to, duplexes, triplexes, townhomes, and condominiums with a density of greater than 19 Dwelling Units per acre. Multi-Family Property Residential Property consisting of two or more for-rent Dwelling Units that share common walls, including, but not limited to, apartments and Residential Property that are not for sale to an end user and are under common management. Non-Residential Property Developed property for which a building permit(s) has been issued for a structure or structures for non-residential use, excluding Hotel Property. Hotel Property Developed property for which a building permit(s) has been issued for purposes of constructing one or more structures comprising of individual sleeping or living units for the accommodation of transient guests. Undeveloped Property Parcels not classified as Developed Property. There are properties which will not be taxed and are included in an “Exempt Category”. These properties include: (i) Public Property, (ii) Property Owner Association Property, (iii) Community Purpose Facility (CPF) Property, and (iv) Assessor’s Parcels with public or utility easements making impractical their utilization for other than the purposes set forth in the easement, including but not limited to property designated for open space, trails, pathways, parks or park and recreation related facilities. Developed Property are those parcels for which a building permit has been issued prior to March 1 st preceding the Fiscal Year in which the Special Tax is being levied. The proposed maximum special tax rate in the Rate and Method of Apportionment (RMA) on all Developed Property was determined by dividing the estimated annual budget at build out (plus a capital replacement allocation, initially equal to 20.9% of the annual budget) by the total estimated development (EDUs) at build out. Collection of Taxes At the beginning of each fiscal year, the City shall determine the amount of the Special Tax Requirement for CFD No. 19M.Then, the special taxes will be levied on all Taxable Property within CFD No. 19M until such time as the total amount of Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied proportionately on each Assessor’s Parcel of Developed Property within CFD No. 19M, up to 100% of the applicable Maximum Special Tax. If additional monies are needed to satisfy the Special Tax Requirement beyond the 100% of the Maximum Special Tax already levied on Developed Property, the remaining amount needed to satisfy the Special Tax Requirement shall then be levied proportionately on each Assessor’s Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax on Undeveloped Property. The Maximum Special Tax shall be subject to an annual escalation as follows. Maximum Special Tax = Maximum Special Tax Component for Labor + Maximum Special Tax Component for Water + Maximum Special Tax Component for Asset Replacement City of Chula Vista Printed on 5/18/2017Page 4 of 8 powered by Legistar™2017-05-23 Agenda Packet Page 18 File#:17-0222, Item#: 2. For a full description of the RMA of the Special Tax, see Attachment 2. Labor Annual Percentage Change This component shall be equal to the annual percentage change for the July immediately preceding the current Fiscal Year and compared to the previous year’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). Water Annual Percentage Change This component shall be equal to the annual percentage change for the July immediately preceding the current Fiscal Year and compared to the previous year’s Otay Water District Commodity Rate. Asset Replacement Annual Percentage Change This component shall be equal to the annual percentage change for the July immediately preceding the current Fiscal Year and compared to the prior year’s Engineering News Record Construction Cost Index for the Los Angeles Area. The Fiscal Year 2017-2018 Maximum Special Tax shall be equal to the Fiscal Year 2017-2018 Maximum Special Tax rates listed in the Table below. In each subsequent Fiscal Year, the Maximum Special Tax Components shall be increased by the escalation factor outlined above in Section C (1, 2, and 3) of the RMA, provided the Maximum Special Tax Component for Labor, the Maximum Special Tax Component for Water and the Maximum Special Tax Component for Asset Replacement shall never be less than two percent (2%) and not greater than six percent (6%) than the maximum amounts in the preceding Fiscal Year, respectively. For example, when calculating the Maximum Special Tax for Fiscal Year 18/19, the following adjusted tax components will be summed: ·The Maximum Special Tax Component for Labor (17/18) increased by percentage change in the CPI-W between July 2017 and July 2016, ·The Maximum Special Tax Component for Water (17/18) increased by percentage change in Otay Water District Commodity Rate between July 2017 and July 2016, and ·The Maximum Special Tax Component for Asset Replacement (17/18) increased by the percentage change in the Construction Cost Index for the Los Angeles Area between July 2017 and July 2016. Proposed Maximum Special Taxes The proposed Maximum Special Taxes for any Assessor’s Parcel classified as Developed Property or Undeveloped Property for fiscal year 2017-18 are as follows: City of Chula Vista Printed on 5/18/2017Page 5 of 8 powered by Legistar™2017-05-23 Agenda Packet Page 19 File#:17-0222, Item#: 2. At buildout, the maximum annual special tax rates generate a total cost estimate of $299,721. The difference between the two total cost estimates is attributable to a rounding adjustment. When the final maximum annual special tax rates were finalized, the maximum annual special tax rates were rounded up to the nearest dollar. As a result of this rounding adjustment, the buildout cost estimate is $161.00 higher than the annual cost estimate. Public Hearing and Election Procedure Tonight, following this public hearing, an election will be held for the landowners to vote on the authorization to levy special taxes within CFD No. 19M. Once the votes are cast, Council will be requested to certify the results of the election. If the ballot measure is approved by at least 2/3 of the qualified electors (i.e., the landowners) voting on the measure, CFD No. 19M will be authorized to levy such special taxes. Council will then be requested to introduce the Ordinance authorizing the levy of special taxes within CFD No. 19M. City of Chula Vista Printed on 5/18/2017Page 6 of 8 powered by Legistar™2017-05-23 Agenda Packet Page 20 File#:17-0222, Item#: 2. Resolutions and Ordinance There are two resolutions, that if adopted, and one ordinance, that if adopted following introduction and waiver of the first reading thereof today, will accomplish the following pertaining to the establishment of CFD No. 19M: Resolution (A), RESOLUTION FORMING AND ESTABLISHING COMMUNITY FACILITIES DISTRICT NO. 19M is the formal action forming and establishing CFD No. 19M and authorizing submittal of the levy of special taxes to the qualified electors of CFD No. 19M,and performs the following: ·Sets the name of CFD No. 19M; ·Identifies the CFD Report prepared by NBS as the report to be used for all future proceedings; ·Establishes a Special Tax to be levied within CFD No. 19M. The Special Tax is set forth in the RMA, which will be approved by the adoption of this Resolution; ·Implements the provisions of the Local Agency Special Tax and Bond Accountability Act which became effective on January 1, 2001 by specifying that: o Each special tax shall be levied for the specific purposes set forth in the Resolution; o The proceeds of the levy of each such special tax shall be applied only to the specific applicable purposes set forth in the Resolution; o CFD No. 19M shall establish a separate account into which the proceeds of each such special tax shall be deposited; and o The City Manager or his or her designee, acting for and on behalf of CFD No. 19M, shall annually file a report with the City Council as required pursuant to Government Code Section 50075.3. ·Submits two (2) ballot propositions to the qualified electors of CFD No. 19M to (A) levy special taxes and (B) establish an appropriations limit for the CFD No. 19M; and ·Describes the type of services to be financed by CFD No. 19M. Resolution (B), RESOLUTION DECLARING THE RESULTS OF A SPECIAL ELECTION IN COMMUNITY FACILITIES DISTRICT NO. 19M makes official the results of the canvass of the ballots submitted by the qualified electors of CFD No. 19M; and Ordinance (C), ORDINANCE AUTHORIZING THE LEVY OF A SPECIAL TAX authorizes the levy of the special tax, sets forth procedures for levying and collecting the special taxes, and authorizes the special taxes to be secured by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the Streets and Highways Code of the State of California, which lien shall be a continuing lien and shall secure each levy of the special taxes. The City Council will be asked to introduce this ordinance and waive the first reading today. City of Chula Vista Printed on 5/18/2017Page 7 of 8 powered by Legistar™2017-05-23 Agenda Packet Page 21 File#:17-0222, Item#: 2. Future Actions Future actions include enacting the Ordinance (second reading), and the levy of special taxes. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100,et seq.). 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. Once CFD No. 19M is formed, the proceeds will serve three City Strategic Plan majors goals: Operational Excellence and Healthy Community by ensuring a new and dedicated revenue stream to provide for the ongoing maintenance the public improvements, park, and facilities being constructed in association with the development of Freeway Commercial 2, and Connected Community by way of maintaining the pedestrian facilities associated with the development. CURRENT YEAR FISCAL IMPACT All costs of formation of the CFD No. 19M are borne by the Developer and the on-going administration will be funded entirely by CFD No. 19M. The City will recover the full cost of staff time expended in formation of CFD No. 19M and administration activities in perpetuity. Staff anticipates that the majority of the CFD No. 19M administration will be contracted out. The CFD No. 19M administration cost is estimated not to exceed $20,000 annually. ONGOING FISCAL IMPACT The costs to administer CFD No. 19M, if established, shall be paid from the proceeds of special taxes to be levied within CFD No. 19M. There is, therefore, no ongoing fiscal impact on the City’s General Fund or Development Services Fund by this action. ATTACHMENTS 1.Recorded Boundary Map 2.CFD Report Staff Contact: Paul Oberbauer, Senior Civil Engineer, Development Services Department City of Chula Vista Printed on 5/18/2017Page 8 of 8 powered by Legistar™2017-05-23 Agenda Packet Page 22 2017-05-23 Agenda Packet Page 23 City of Chula Vista Community Facilities District No. 19M (Freeway Commercial 2) Special Tax Report April 2017 Prepared by For and on behalf of the City of Chula Vista Main Office 32605 Temecula Parkway, Suite 100 Temecula, CA 92592 Toll free: 800.676.7516 Fax: 951.296.1998 Regional Office 870 Market Street, Suite 1223 San Francisco, CA 94102 Toll free: 800.434.8349 Fax: 415.391.8439 2017-05-23 Agenda Packet Page 24 TABLE OF CONTENTS INTRODUCTION 1 DESCRIPTION OF SERVICES 3 BOUNDARIES OF DISTRICT 6 COST ESTIMATE 7 Initial Maximum Amount Proposed to be Expended .............................................................................7 Fiscal Year 2017/18 Maximum Special Tax Rates...................................................................................7 Anticipated Maximum Special Tax Revenue ........................................................................................10 RATE AND METHOD OF APPORTIONMENT 11 Term of Special Tax ..............................................................................................................................11 Manner of Collection ............................................................................................................................11 GENERAL TERMS AND CONDITIONS 12 APPENDICES 13 APPENDIX A –BOUNDARY MAP A APPENDIX B –BUDGET B APPENDIX C –RATE AND METHOD OF APPORTIONMENT C APPENDIX D –RESOLUTION OF INTENTION D 2017-05-23 Agenda Packet Page 25 Community Facilities District No.19M (Freeway Commercial 2)1 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista –April 2017 INTRODUCTION The City Council (the “City Council”) of the City of Chula Vista (the “City”) did, pursuant to the provisions of the Mello-Roos Community Facilities Act of 1982 (Sections 53311 and following, California Government Code; hereafter referred to as the “Act”), on April 11, 2017, adopt a resolution entitled the Resolution of the City Council of the City of Chula Vista Declaring Its Intention to Establish Community Facilities District No. 19M (Freeway Commercial 2)and to Authorize the Levy of a Special Tax therein to Finance Certain Services and Setting the Public Hearing to Consider the Establishment of the Proposed District (the “Resolution of Intention”)a copy of the Resolution is included herein as Appendix D. In the Resolution, the City Council expressly directed the preparation of a written Community Facilities District Report (the “Report”), for the proposed City of Chula Vista Community Facilities District No. 19M (Freeway Commercial 2)(the “District”). In the Resolution to Prepare the Report, the City Council expressly ordered the preparation of a written Report for the District containing the following : 1.A brief description of the services to be funded by the District; and 2.An estimate of the fair and reasonable initial annual cost of providing the services, including the incidental expenses in connection therewith, any City administration costs and all other related costs. For particulars, reference is made to the Resolution s of the District, as previously adopted on April 11, 2017 by the City Council. NOW, THEREFORE, the Report has been prepared by, or under the direction of the Director of Public Works of the City, the appointed responsible officer directed to prepare the Report or cause the Report to be prepared pursuant to the provisions of the Act ,and does hereby submit this Report containing the following information: DESCRIPTION OF SERVICES. A description of the services that the City Council has determined to be eligible to be funded by the District. BOUNDARIES OF THE DISTRICT. The proposed boundaries of the District are those properties and parcels on which special taxes may be levied to pa y for the costs and expenses of the services. COST ESTIMATE. The initial maximum cost estimate for the District services and the anticipated initial maximum special tax revenue . 2017-05-23 Agenda Packet Page 26 Community Facilities District No.19M (Freeway Commercial 2)2 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista –April 2017 RATE AND METHOD OF APPORTIONMENT. The Rate and Method of Apportionment of Special Tax which was included in the Resolution of Intention and approved by the City Council. 2017-05-23 Agenda Packet Page 27 Community Facilities District No.19M (Freeway Commercial 2)3 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista –April 2017 DESCRIPTION OF SERVICES The types of services (the “Services”) to be funded by special taxes levied within the District shall include maintenance,servicing and replacement of (a) landscaping, including, but not limited to, trees, shrubs, grass, other ornamental vegetation located in or on slopes, parkways and medians; (b) facilities that are directly related to storm water conveyance, including, but not limited to pipes and drainage inlets, the Poggi Canyon channel and detention basin or parks; (c) walls and fencing; and (d) parks (together, the “Improvements” as specified in the list of public facilities below), property owned by the City or propert y over which the City has an easement authorizing the City to maintain such landscaping, facilities, walls and fencing and trails. For purposes of this description of the Services to be funded by the levy of special taxes within the District, “maintenance”includes, but is not limited to, the furnishing of services and materials for the ordinary and usual maintenance, operation, and servicing of any of the Improvements, including: (a) Repair, removal, or replacement of all facilities. (b) Providing for the life, growth, health, and beauty of landscaping, including cultivation, irrigation, trimming, spraying, fertilizing, or treating for disease or injury. (c) The removal of trimmings, rubbish, debris, silt, and other solid waste. (d) The cleaning, sandblasting, and painting of walls and other Improvement Areas to remove or cover graffiti. (e) The elimination, control, and removal of rodents and vermin. (f)) The maintenance and cleaning of drainage and other storm water control facilities required to provide storm water quality control. "service" or "servicing" means the furnishing of: (a) Electric current or energy, gas, or other illuminating agent for any public lighting facilities or for the lighting or operation of any other Improvements. (b) Water for the irrigation of any landscaping or the operation or maintenance of any other Improvements. For purposes of this description of the Services to be funded by the levy of special taxes within the District, “administrative expenses” means the actual or estimated costs incurred by the City, acting for and on behalf of the District as the administrator thereof, to determine, levy and collect the special taxes within the District, including salaries of City employees and a proportionate amount of the City’s general administrative overhead related thereto, and the 2017-05-23 Agenda Packet Page 28 Community Facilities District No.19M (Freeway Commercial 2)4 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista –April 2017 fees of consultants and legal counsel providing services related to the administration of the District; the costs of collecting installments of the special taxes levied within the District; and any other costs required to administer the District as determined by the City. List of Public Facilities to be Maintained Community Facilities District No. 19M (Freeway Commercial 2) I.LANDSCAPE MAINTENANCE Planted Area –Town Center Drive Parkways & Medians Trees Shrubs and Groundcover Median Maintenance Hardscape 6’ Entry Monument Wall Street Pole Lighting Graffiti Abatement for 6’ Entry Monument Wall Irrigation Water Cost Planted Area –FC –2 Centerpark Road Trees Palms Shrubs and Groundcover Irrigation Water Cost II.TOWN CENTER PARK MAINTENANCE Planted Area Trees Approved Palms Planting Material Sod/Turf Irrigation Water Cost Flatwork/Walls Seating Wall –Amphitheater Area Seating Wall –Picnic and Hillside Area Entry Monument Walls Graffiti Abatement –Walls & Flatwork Enriched Concrete –Plaza/Picnic Area Concrete Walk Site Amenities, Features Splash Pad with Water Jets and Equipment Bike Racks Trash Receptacles Benches Boulder Field Play Area Graffiti Abatement –Boulders 2017-05-23 Agenda Packet Page 29 Community Facilities District No.19M (Freeway Commercial 2)5 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista –April 2017 Stair System Hillside Concrete Stair and Bridge Handrail System Hillside Artificial Turf Slide Area Tree Grates –5’” x 5’ Cast Iron Pole Lights II.TOWN CENTER PARK MAINTENANCE (Continued) Moveable Furniture Secured with Cable Dog Waste Bag Dispenser/Collection/Disposal Services Trash Collection & Disposal Utilities (Gas & Electric) Structures Restroom and Storage Building Trellis-Wood Bridge-Wood III.STORM WATER MAINTENANCE Infrastructure Catch Basins and Outlets Public Works Staff-Clean & Flush Catch Basins Machine Clean Pipe CCTV Inspection Poggi Channel/Detention Basin Channel Detention Basin IV.CFD IRRIGATION CONTROLLERS Cell Phone Service Controller Maintenance Cost Water Meter Fees Irrigation Parts Irrigation Maintenance Cost 2017-05-23 Agenda Packet Page 30 Community Facilities District No.19M (Freeway Commercial 2)6 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista –April 2017 BOUNDARIES OF DISTRICT The proposed boundaries of the District are those parcels on which special taxes may be levied and collected to pay for the costs and expenses of the District services. The proposed boundaries of the District are identified on the map of the District recorded on April 18, 2017, in Book 46 at Page 55 of Maps of Assessment and Community Facilities Districts as Document No.2017-7000138 in the office of the County Recorder for the County of San Diego.The District map is on file with the City Clerk, to which reference is hereby made and a reduced copy of such map is set forth in Appendix A of this Report. 2017-05-23 Agenda Packet Page 31 Community Facilities District No.19M (Freeway Commercial 2)7 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista –April 2017 COST ESTIMATE Initial Maximum Amount Proposed to be Expended The annual budget presented below represents the initial maximum costs for providing the District services. District Costs 2017/18 Maximum Amount Annual Services/Administrative Costs $299,560 A detailed list of the annual services and the associated costs can be located in Appendix B of this Report. Fiscal Year 2017/18 Maximum Special Tax Rates The Maximum Special Tax for any Assessor’s Parcel classified as Developed Property or Undeveloped Property shall be determined by reference to Table 1 and the paragraphs that follow Table 1. TABLE 1 Maximum Special Tax for Developed and Undeveloped Property Community Facilities District No. 19M Fiscal Year 2017/2018 Land Use Class Maximum Special Tax Component for Labor Maximum Special Tax Component for Water Maximum Special Tax Component for Asset Replacement Fiscal Year 2017/2018 Maximum Special Tax Single Family Property with Density (DU/Acre) of <19 $803.23 per DU $223.47 per DU $43.30 per DU $1,070.00 per DU Single Family Property with Density (DU/Acre) of >19 $481.94 per DU $134.08 per DU $25.98 per DU $642.00 per DU Multi-Family Property $2,614.63 per Acre $727.41 per Acre $140.96 per Acre $3,483.00 per Acre 2017-05-23 Agenda Packet Page 32 Community Facilities District No.19M (Freeway Commercial 2)8 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista –April 2017 Land Use Class Maximum Special Tax Component for Labor Maximum Special Tax Component for Water Maximum Special Tax Component for Asset Replacement Fiscal Year 2017/2018 Maximum Special Tax Non-Residential Property $0.32 per Building Square Foot $0.09 per Building Square Foot $0.02 per Building Square Foot $0.43 per Building Square Foot Hotel Property $4,329.94 per Acre $1,204.62 per Acre $233.44 per Acre $5,768.00 per Acre Undeveloped Property $7,314.65 per Acre $2,034.99 per Acre $394.36 per Acre $9,744.00 per Acre The Maximum Special Tax shall be equal to the sum of the Maximum Special Tax Component for Labor, Maximum Special Tax Component for Water and Maximum Special Tax Component for Asset Replacement as shown in Table 1. In determining the Maximum Special Tax, the Maximum Special Tax Components for each Land Use Class shall be increased in the 2018 /2019 Fiscal Year and each Fiscal Year thereafter, as follows: 1.The annual percentage change of the Maximum Special Tax Component for Labor shall be equal to the annual percentage change for the July immediately preceding the current Fiscal Year and compared to the previous year’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W); and 2.The annual percentage change of the Maximum Special Tax Component for Water shall be equal to the annual percentage change for the July immediately preceding the current Fiscal Year and compared to the previous year’s Otay Water District Commodity Rate; and 3.The annual percentage change of the Maximum Special Tax Component for Asset Replacement shall be equal to the annual percentage change for the July immediately preceding the current Fiscal Year and compared to the prior year’s Construction Cost Index. The Fiscal Year 2017/2018 Maximum Special Tax shall be equal to the Fiscal Year 2017 /2018 Maximum Special Tax rates listed in Table 1. In each subsequent Fiscal Year, the Maximum Special Tax Components shall be increased by the escalation factor outlined above, provided the Maximum Special Tax Component for Labor, the Maximum Special Tax Component for Water and the Maximum Special Tax Component for Asset Replacement 2017-05-23 Agenda Packet Page 33 Community Facilities District No.19M (Freeway Commercial 2)9 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista –April 2017 shall never be less than two percent (2%) and not greater than six percent (6%) of the maximum amounts in the preceding Fiscal Year, respectively. 2017-05-23 Agenda Packet Page 34 Community Facilities District No.19M (Freeway Commercial 2)10 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista –April 2017 Anticipated Maximum Special Tax Revenue The initial maximum special tax rates are set forth in the Rate and Meth od of Apportionment for the District. Based upon anticipated development, the anticipated initial maximum special tax revenue is as follows: Anticipated District Maximum Special Tax Revenues by Land Use Category 2017/18 Maximum Special Tax Rate 2017/18 Maximum Amount Single Family Property with Density (DU/Acre) of <19 $1,070.00 per DU $85,600 Single Family Property with Density (DU/Acre) of >19 $642.00 per DU 136,104 Multi-Family Property $3,483.00 per Acre 36,244 Non-Residential Property $0.43 per Building Square Foot 6,450 Hotel Property $5,768.00 per Acre 35,323 Undeveloped Property $9,744.00 per Acre 0.00 Total Anticipated Maximum Special Tax Revenues*$299,721.00 *The total annual cost estimate is $299,560.At buildout, the maximum annual special tax rates generate a total cost estimate of $299,721, as presented in the table above. The difference between the two total cost estimates is attributable to a rounding adjustment. When the final maximum annual special tax rates were finalized, the maximum annual special tax rates were rounded up to the nearest dollar. As a result of this rounding adjustment, the buildout cost estimate is $161.00 higher than the annual cost estimate. 2017-05-23 Agenda Packet Page 35 Community Facilities District No.19M (Freeway Commercial 2)11 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista –April 2017 RATE AND METHOD OF APPORTIONMENT All of the property located within the District, unless exempted by law or by the Rate and Method of Apportionment, shall be taxed for the purpose of providing necessary services for the District.Pursuant to Section 53325.3 of the Act, the tax imposed "is a special tax and not a special assessment, and there is no requirement that the tax be apportioned on the basis of benefit to any property." The special tax "may be based on benefit received by parcels of real property, the cost of making facilities or authorized services available to each parcel, or other reasonable basis as determined by the legislative body," although the special tax may not be apportioned on an ad valorem basis pursuant to Ar ticle XIIIA of the California Constitution. As shown in Appendix C, the adopted Rate and Method of Apportionment provides information sufficient to allow each property owner within the District to estimate the maximum special tax that he or she will be required to pay. Term of Special Tax The District special tax shall be levied as long as necessary to meet the annual special tax requirement. Manner of Collection The annual special tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that the District, may directly bill the special tax, and may collect special taxes at a different time or in a different manner as necessary to meet its financial obligations. 2017-05-23 Agenda Packet Page 36 Community Facilities District No.19M (Freeway Commercial 2)12 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista –April 2017 GENERAL TERMS AND CONDITIONS The Description of the Services, as set forth herein, is general in nature. The final nature and location of the facilities that will be maintained will be determined upon the preparation of final plans and specifications or the approval of services. As facilities and final plans are finalized, the City anticipates collecting a reserve prior to taking over the maintenance of any item or obligation. However, if under any circumstance, a situation arises where obligations are being turned over to the City prior to adequate reserves being on hand, the City will require an adequate reserve, which the City may allow to be funded in a different manner. 2017-05-23 Agenda Packet Page 37 Community Facilities District No.19M (Freeway Commercial 2)13 Special Tax Report Prepared by NBS on behalf of the City of Chula Vista –April 2017 APPENDICES Boundary Map A Budget B Rate and Method of Apportionment C Resolution of Intention D 2017-05-23 Agenda Packet Page 38 APPENDIX A –BOUNDARY MAP The boundary map for the District is shown on the following page. The lines and dimensions of each lot or parcel within the District are those lines and dimensions shown on the maps of the County Assessor, at the time this report was prepared, and are incorporated by reference herein and made part of this Report. 2017-05-23 Agenda Packet Page 39 2017-05-23 Agenda Packet Page 40 APPENDIX B –BUDGET A District Budget with a detailed list of the annual projected costs is shown on the following page. 2017-05-23 Agenda Packet Page 41 I. LANDSCAPE MAINTENANCE BUDGET Updated: 10/12/163/27/2017 Planning Area 12 Cost Total Annual Quantity(a)Per Unit Duration Cost PLANTED AREA - TOWN CENTER DRIVE PARKWAYS & MEDIANS Trees 50 80.00$EA YR 4,000.00$ Shrubs and Groundcover 23,600 0.29$SF YR 6,844.00$ Median Maintenance Hardscape 1,500 0.40$SF YR 600.00$ 6' Entry Monument Wall 1 1,700.00$LS YR 1,700.00$ Street Pole Lighting 22 200.00$EA YR 4,400.00$ Graffiti Abatement for 6' Entry Monument Wall 150 3.25$SF YR 487.50$ Irrigation water cost 23,600 0.53$SF YR 12,508.00$ PLANTED AREA - FC - 2 CENTERPARK ROAD Trees 31 80.00$EA YR 2,480.00$ Palms 13 100.00$EA YR 1,300.00$ Shrubs and Groundcover 5,615 0.29$SF YR 1,628.35$ Irrigation water cost 5,615 0.53$SF YR 2,975.95$ PLANTED AREA - TOWN CENTER PARK Trees 150 80.00$EA YR 12,000.00$ Approved Palms 45 100.00$EA YR 4,500.00$ Planting Material 52,700 0.29$SF YR 15,283.00$ Sod/Turf 15,000 0.42$SF YR 6,300.00$ Irrigation water cost 67,700 0.53$SF YR 35,881.00$ Flatwork/Walls Seating Wall-Amphitheater Area 270 10.00$LF YR 2,700.00$ Seating Wall - Picnic and Hillside Area 285 10.00$LF YR 2,850.00$ Entry Monument Walls 1 1,500.00$EA YR 1,500.00$ Graffiti Abatement - Walls & Flatwork 27,240 0.40$SF YR 10,896.00$ Enriched concrete - plaza/picnic area 12,600 0.30$SF YR 3,780.00$ Concrete walk 13,800 0.30$SF YR 4,140.00$ Site Amenities, Features Splash Pad with Water Jets and Equipment 1 15,000.00$EA YR 15,000.00$ Bike Racks 3 80.00$EA YR 240.00$ Trash Receptacles 15 250.00$EA YR 3,750.00$ Benches 21 25.00$EA YR 525.00$ Boulder Field Play Area 1 3,000.00$EA YR 3,000.00$ Graffiti Abatement - Boulders 500 1.25$SF YR 625.00$ Stair System Hillside Concrete 1 750.00$EA YR 750.00$ Stair and bridge handrail system 50 10.00$LF YR 500.00$ Hillside Artificial Turf Slide Area 1,350 0.35$SF YR 472.50$ Tree Grates - 5'x5' cast iron 18 20.00$EA YR 360.00$ Pole Lights 42 80.00$EA YR 3,360.00$ Moveable Furniture Secured with Cable 28 55.00$EA YR 1,540.00$ Dog Waste Bag Dispenser/Collection/Disposal 3 454.00$EA YR 1,362.00$ Services Trash Collection & Disposal 1 3,600.00$LS YR 3,600.00$ Utilities (Gas & Electric)1 4,500.00$LS YR 4,500.00$ Structures Restroom and Storage Building 1 14,600.00$EA YR 14,600.00$ Trellis-Wood 1 3,100.00$EA YR 3,100.00$ Bridge-Wood 1 1,900.00$EA YR 1,900.00$ STORM DRAINAGE INFRASTRUCTURE All Catch Basins & Outlets 9 20.00$EA YR 180.00$ PWO Staff-Clean & Flush Catch Basins 9 67.00$EA YR 603.00$ Machine Clean Pipe 1,542 4.55$LF YR 7,016.10$ CCTV Inspection 1,542 4.75$LF YR 7,324.50$ POGGI CHANNEL / DETENTION BASIN Channel 39 13.00$ACRES YR 507.00$ Detention Basin 39 17.50$ACRES YR 682.50$ CFD IRRIGATION CONTROLLER (Quantities=5) Cell phone ($180 and electricity ($240) cost/yr 5 420.00$EA YR 2,100.00$ Controller Maintenance Cost 5 100.00$EA YR 500.00$ Water meter fees (4 meters at $1,0494/meter/year)5 1,404.00$EA YR 7,020.00$ Irrigation Parts 1 9,900.00$LS YR 9,900.00$ Irrigation Maintenance Cost 114,915 0.30$SF YR 34,474.50$ 268,245.90$ Administrative Expenses 20,160.88$ Capital Replacement Reserve See Exhibit A (Replacement Costs)11,314.22$ Total Annual Budget (O&M + Admin + Capital Replacement Reserve)299,721.00$ All quantities are based off of preliminary exhibits. Unit costs are based on industry standards and manufacturers Page 1 of 12017-05-23 Agenda Packet Page 42 APPENDIX C –RATE AND METHOD OF APPORTIONMENT The following pages provide a copy of the District’s Rate and Method of Apportionment included in the Resolution of Intention and approved by the City Council on April 11, 2017. 2017-05-23 Agenda Packet Page 43 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 1 RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO.19M (FREEWAY COMMERCIAL 2) A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable Property within the City of Chula Vista Community Facilities District No.19M (Freeway Commercial 2)(“CFD No.19M”) and collected each Fiscal Year commencing in Fiscal Year 2017-2018 in an amount determined by the CFD Administrator through the application of the Special Tax for Taxable Property as described below. All of the Taxable Property within CFD No.19M, unless exempted by law or by the provisions hereof, shall be taxed for the purposes to the extent and in the manner herein provided. A.GENERAL DEFINITIONS The terms hereinafter set forth have the following meaning: “Acre”or “Acreage”means the land area of an Assessor’s Parcel as shown on County records, such as an Assessor’s Parcel Map or secured roll data, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Subdivision Map, condominium plan, record of survey, or other recorded document creating or describing the parcel. If the preceding maps for a land area are not available, the Acreage of such land area may be determined utilizing available spatial data and GIS.The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560. “Act”means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses”means the actual or reasonably estimated costs incurred by the City acting for and on behalf of the CFD as administrator thereof, to determine, levy and collect the Special Taxes, in responding to public inquiries regarding the Special Taxes, including salaries of City employees and a proportionate amount of the City’s general administ rative overhead related thereto;the fees of consultants and legal counsel providing services related to the administration of the CFD; any amounts estimated or advanced by the City or CFD for any other administrative purposes; and any other costs required to administer the CFD as determined by the City. “Assessor’s Parcel”means a lot or parcel shown in an Assessor’s Parcel Map with an assigned assessor’s parcel number. “Assessor’s Parcel Map”means an official map of the County Assessor of the County designating lots or parcels by an Assessor’s Parcel number. “Authorized Services”means those authorized maintenance activities and/or services, and expenses that may be funded by CFD No. 19M pursuant to the Act as amended, including, without limitation, those services authorized to be funded by CFD No. 19M as set forth in the documents adopted by the City Council at the time CFD No. 19M was formed. 2017-05-23 Agenda Packet Page 44 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 2 “Building Square Foot” or “Square Footage”means the square footage as shown on a building permit for an Assessor’s Parcel of Non-Residential Property. “Capital Replacement Reserve Fund”means a fund that shall be maintained for the CFD for each Fiscal Year to provide for the accumulation and holding of funds for long-term capital projects, asset replacement, or other large anticipated expenditures. “CFD Administrator”means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. “CFD No.19M”or “CFD”means City of Chula Vista Community Facilities District No.19M (Freeway Commercial 2). “City”means the City of Chula Vista. “City Council”means the City Council of the City, acting as the legislative body of CFD No.19M. “City Finance Director”means the Finance Director of the City or his or her designee. “City Manager”means the City Manager of the City or his or her designee. “County”means the County of San Diego. “County Assessor”means the Assessor of the County or his or her designee. “County Recorder”means the Recorder of the County or his or her designee. “Community Purpose Facility Property”or “CPF Property”means all Assessor’s Parcels that are classified as community purpose facilities and meet the requirements of Chula Vista Municipal Code Section 19.48.025, as amended from time to time. “Construction Cost Index”means, for any Fiscal Year, the applicable Construction Cost Index for the Los Angeles Area as set forth in the Engineering News Record for July of the preceding Fiscal Year.In the event that this rate is no longer published or provided, the CFD Administrator shall choose a comparable rate to use in its place. “Consumer Price Index for Urban Wage Earners and Clerical Workers”or “CPI-W”means the applicable CPI-W as set forth by the United States Department of Labor, Bureau of Labor Statistics for July of the preceding Fiscal Year.In the event that this rate is no longer published or provided, the CFD Administrator shall choose a comparable rate to use in its place. “Density”means for each Assessor’s Parcel of Single Family Property the number of Dwelling Units per gross Acre as determined based on the approved tentative map or approved tentative parcel map entitling the development unless otherwise approved in writing by the City Manager. “Developed Property”means all Taxable Property for which a building permit was issued prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. 2017-05-23 Agenda Packet Page 45 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 3 “Dwelling Unit”or “DU”means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential dwelling units. “Estimated Special Tax Delinquency Amount”a reasonable estimate of delinquencies expected to occur in the Fiscal Year in which the Special Tax will be levied based on the delinquency rate for Special Taxes levied in the previous Fiscal Year. “Exempt Property”means all Assessors’ Parcels that are exempt from the Special Tax pursuant to law or Section E herein. “Final Subdivision Map”means a subdivision of property creating residential or non-residential buildable lots by recordation of a Final Subdivision Map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a cond ominium plan pursuant to the California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1st preceding the Fiscal Year in which the Special Tax is being levied. “Fiscal Year”means the period starting July 1st and ending on the following June 30th. “Hotel Property”means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one or more structures comprising of individual sleeping or living units, except as otherwise provided herein, for the accommodation of transient guests. “Land Use Class”means any of the classes listed in Table 1. “Maximum Special Tax”means the Maximum Special Tax, determined in accordance with Section C, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Multi-Family Property”means all Assessor’s Parcels of Residential Property consisting of two or more for-rent Dwelling Units that share common walls, including, but not limited to, apartments and Residential Property that are not for sale to an end user and are under common management. “Non-Residential Property”means all Assessor’s Parcels of Developed Property,for which a building permit(s) has been issued for a structure or structures for non-residential use, excluding Hotel Property. “Otay Water District Commodity Rate”means the maximum rate charged by the Otay Water District for recycled water on the preceding July 1st of any Fiscal Year.In the event that this rate is no longer published or provided, the CFD Administrator shall choose a comparable rate to use in its place. “Property Owner Association Property”means any Assessor’s Parcel within the boundaries of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub-association. 2017-05-23 Agenda Packet Page 46 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 4 “Proportionately”means for Taxable Property that the ratio of the Special Tax to the Maximum Special Tax is equal for all Taxable Property levied within each Land Use Class within CFD No.19M. “Public Property”means any property within the boundaries of CFD No.19M which (i) is owned by a public agency or expected to be owned by a public agency at the time of CFD formation, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and acreage on a Final Subdivision Map as property which will be owned by a public agency.For purposes of this definition, a public agency includes the federal government, the State of California, the County, the City,or any other public agency. “Operating Reserve Fund”means a fund that shall be maintained for the CFD each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, working capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of S pecial Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies. “Residential Property”means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one or more residential Dwelling Unit(s). “Single Family Property”means all Assessor’s Parcels of Residential Property consisting of one or more Dwelling Unit(s) that may or may not share common walls with one or more other Dwelling Unit(s), including, but not limited to, duplexes, triplexes, townhomes, condominiums ,and other Residential Properties that are for sale to an end user and are not under common management. “Special Tax”means the Special Tax levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax Requirement. “Special Tax Requirement”means the amount, as determined by the CFD Administrator, for any Fiscal Year to: (i) pay the costs of providing the Authorized Services during such Fiscal Year, (ii) pay Administrative Expenses associated with the Special Tax, (iii) establish or replenish the Operating Reserve Fund, (iv)establish or replenish the Capital Replacement Reserve Fund, (v)pay for the replacement costs of park or other public improvements within the CFD, (v i)pay incidental expenses related to the Authorized Services as authorized pursuant to the Act, (vii) fund an amount equal to the Estimated Special Tax Delinquency Amount,and (viii) fund the shortfall, if any, in the Special Tax revenues collected in the preceding Fiscal Year where such shortfall resulted from delinquencies in the payment of Special Taxes in such Fiscal Year that exceeded the Estimated Special Tax Delinquency Amount included in the Special Tax Requirement for the preceding Fiscal Year, less (ix) any excess funds available in the Operating Reserve Fund,Capital Replacement Reserve Fund, or other funds associated with CFD No. 19M as determined by the City Finance Director. “State”means the State of California. “Taxable Property”means all of the Assessor’s Parcels within the boundaries of CFD No.19M,that are not Exempt Property from the CFD No.19M Special Tax pursuant to law or Section E. “Undeveloped Property”means for each Fiscal Year, all Taxable Property not classified as Developed Property. 2017-05-23 Agenda Packet Page 47 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 5 B.ASSIGNMENT TO CATEGORIES OF SPECIAL TAX Each Fiscal Year, beginning with Fiscal Year 2017-2018, using the definitions above, each Assessor’s Parcel within CFD No. 19M shall be classified by the CFD Administrator as Taxable Property or Exempt Property.Commencing with Fiscal Year 2017-2018 and for each subsequent Fiscal Year, Taxable Property shall be subject to the levy of Special Taxes pursuant to Section C.In addition,in each such Fiscal Year, each Assessor’s Parcel of Taxable Property shall be further classified by the CFD Administrator as Developed Property or Undeveloped Property. Developed Property shall be further assigned to a Land Use Class as specified in Table 1 of Section C. The Land Use Class of each Assessor’s Parcel shall be determined based on the records of the County Assessor or other such information provided by the City.In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class.The Maximum Special Tax determined on such Assessor’s Parcel shall be the sum of the Maximum Special Taxes for a ll Land Use Classes located on that Assessor’s Parcel. 2017-05-23 Agenda Packet Page 48 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 6 C.MAXIMUM SPECIAL TAX RATE The Maximum Special Tax for any Assessor’s Parcel classified as Developed Property or Undeveloped Property shall be determined by reference to Table 1 and the paragraphs that follow Table 1. TABLE 1 Maximum Special Tax for Developed and Undeveloped Property Community Facilities District No. 19M Fiscal Year 2017-2018 Land Use Class Maximum Special Tax Component for Labor Maximum Special Tax Component for Water Maximum Special Tax Component for Asset Replacement Fiscal Year 2017-2018 Maximum Special Tax Single Family Property with Density (DU/Acre) of <19 $803.23 per DU $223.47 per DU $43.30 per DU $1,070.00 per DU Single Family Property with Density (DU/Acre)of >19 $481.94per DU $134.08 per DU $25.98 per DU $642.00 per DU Multi-Family Property $2,614.63 per Acre $727.41 per Acre $140.96 per Acre $3,483.00 per Acre Non-Residential Property $0.32 per Building Square Foot $0.09 per Building Square Foot $0.02 per Building Square Foot $0.43 per Building Square Foot Hotel Property $4,329.94 per Acre $1,204.62 per Acre $233.44 per Acre $5,768.00 per Acre Undeveloped Property $7,314.65 per Acre $2,034.99 per Acre $394.36 per Acre $9,744.00 per Acre The Maximum Special Tax shall be equal to the sum of the Maximum Special Tax Component for Labor, Maximum Special Tax Component for Water and Maximum Special Tax Component for Asset Replacement as shown in Table 1. In determining the Maximum Special Tax,the Maximum Special Tax Components for each Land Use Class shall be increased in the 2018-2019 Fiscal Year and each Fiscal Year thereafter, as follows: 1.The annual percentage change of the Maximum Special Tax Component for Labor shall be equal to the annual percentage change for the July immediately preceding the current Fiscal 2017-05-23 Agenda Packet Page 49 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 7 Year and compared to the previous year’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W); and 2.The annual percentage change of the Maximum Special Tax Component for Water shall be equal to the annual percentage change for the July immediately preceding the current Fiscal Year and compared to the previous year’s Otay Water District Commodity Rate; and 3.The annual percentage change of the Maximum Special Tax Component for Asset Replacement shall be equal to the annual percentage change for the July immediately preceding the current Fiscal Year and compared to the prior year’s Construction Cost Index. The Fiscal Year 2017-2018 Maximum Special Tax shall be equal to the Fiscal Year 2017-2018 Maximum Special Tax rates listed in Table 1.In each subsequent Fiscal Year, the Maximum Special Tax Components shall be increased by the escalation factor outlined above in Section C (1,2, and 3), provided the Maximum Special Tax Component for Labor, the Maximum Special Tax Component for Water and the Maximum Special Tax Component for Asset Replacement shall never be less than two percent (2%) and not greater than six percent (6%)of the maximum amounts in the preceding Fiscal Year, respectively. D.METHOD OF APPORTIONMENT OF SPECIAL TAX Commencing with Fiscal Year 2017-2018, and for each subsequent Fiscal Year, the CFD Administrator shall levy the Special Tax at the rates established in Section C on all Taxable Property within CFD No. 19M until the total amount of Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: 1.The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property within the CFD up to one hundred percent (100%) of the applicable Maximum Special Tax. 2.If additional monies are needed to satisfy the Special Tax Requirement after Developed Property has been levied one hundred percent (100%) of their Maximum Special Tax, the remaining amount needed to satisfy the Special Tax Requirement shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at up to one hundred percent (100%) of the Maximum Special Tax on Undeveloped Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor’s Parcel of Residential Property be increased because of delinquency or default by the owner of any other Assessor’s Parcel within the CFD by more than ten percent (10%) above what such Special Tax would have been in the absence of delinquencies. E.EXEMPTIONS The CFD Administrator shall classify the following as Exempt Property: Public Property,Property Owner Association Property,Community Purpose Facility Property,and Assessor’s Parcels with 2017-05-23 Agenda Packet Page 50 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 8 public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement. If the use of an Assessor's Parcel changes so that such Assessor's Parcel is no longer eligible to be classified as Exempt Property under this section,such Assessor’s Parcel shall be deemed to be Taxable Property. F.PREPAYMENT OF SPECIAL TAX The Maximum Special Tax may not be prepaid and shall continue to be levied in accordance with Section D of this Rate and Method of Apportionment on an annual basis on all Taxable Property in CFD No. 19M for the purpose of funding ongoing Authorized Services. G.REVIEW/APPEALS The CFD Administrator may establish such procedures, as it deems necessary to undertake the review of any such appeal.The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any property owner appeals, as herein specified. Any property owner who feels that the amount of the Special Tax levied on their Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error.If following such consultation,the CFD Administrator determines that an error has occurred;the CFD Administrator in consultation with the City Finance Director shall take any of the following actions to correct the error: Amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year, Require the CFD to reimburse the property owner for the amount of the overpayment for the current Fiscal Year to the extent of available CFD funds,or Grant a credit against, eliminate or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s)for overpayment for the current Fiscal Year. If following such consultation and action (if any by the CFD Administrator), the property owner believes such error still exists, such person may file a written notice with the City Finance Director appealing the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action (if any by the City Finance Director), the property owner believes such error still exists, such person may file a written notice with the City Council appealing the amount of the Special Tax levied on such Assessor's Parcel.If the City’s Finance Director, City Council or designee determines an error exists;the CFD Administrator shall take any actions as described above, in order to correct the error.The decision of the City Council shall be final and binding to all persons. 2017-05-23 Agenda Packet Page 51 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 9 H.INTERPRETATIONS The CFD Administrator may make interpretations.If necessary, interpretations may be made by the City Council, by ordinance or resolution, for purposes of clarifying any vagueness or ambiguity as it relates to this Rate and Method of Apportionment. I.MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No.19M, may, at the sole discretion of the City, directly bill the Special Tax,and may collect the Special Taxes at a different time or in a different manner as necessary to meet its financial obligations. J.REPEAL OF SPECIAL TAX If the levy of the Special Tax is repealed by initiative or any other action participated in by the property owners of Assessor’s Parcels in CFD No.19M, the City shall cease to levy the Special Tax and shall cease to be obligated to provide the Authorized Services for which the Special Tax was levied. The obligation to provide the Authorized Services previously funded by the repealed Special Tax shall become the joint obligations of the property owners of Assessor’s Parcels within CFD No. 19M. K.TERM OF SPECIAL TAX The Maximum Special Tax shall be levied commencing in Fiscal Year 2017-2018 and shall be levied in perpetuity, unless and until such time the City determines that revenues are no longer needed to pay the Special Tax Requirement. 2017-05-23 Agenda Packet Page 52 APPENDIX D –RESOLUTION OF INTENTION The following pages provide a copy of the Resolution of Intention as approved by the City Council on April 11, 2017. 2017-05-23 Agenda Packet Page 53 2017-05-23 Agenda Packet Page 54 2017-05-23 Agenda Packet Page 55 2017-05-23 Agenda Packet Page 56 2017-05-23 Agenda Packet Page 57 2017-05-23 Agenda Packet Page 58 2017-05-23 Agenda Packet Page 59 2017-05-23 Agenda Packet Page 60 2017-05-23 Agenda Packet Page 61 2017-05-23 Agenda Packet Page 62 2017-05-23 Agenda Packet Page 63 2017-05-23 Agenda Packet Page 64 2017-05-23 Agenda Packet Page 65 2017-05-23 Agenda Packet Page 66 2017-05-23 Agenda Packet Page 67 2017-05-23 Agenda Packet Page 68 2017-05-23 Agenda Packet Page 69 2017-05-23 Agenda Packet Page 70 SECOND READING AND ADOPTION 09960.00000\29690382.1 1 ORDINANCE NO. _________ ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 19M (FREEWAY COMMERCIAL 2), AUTHORIZING THE LEVY OF A SPECIAL TAX IN SUCH COMMUNITY FACILITIES DISTRICT WHEREAS, the City Council of the City of Chula Vista, California (the “City Council”), has initiated proceedings, held a public hearing, conducted an election and received a favorable vote from the qualified electors authorizing the levy of special taxes in a community facilities district, all as authorized pursuant to the terms and provisions of the “Mello-Roos Community Facilities Act of 1982,” being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of the State of California (the “Act”) and the City of Chula Vista Community Facilities District Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California (the “Ordinance”) (the Act and the Ordinance may be referred to collectively as the “Community Facilities District Law”). This community facilities district shall hereinafter be referred to as Community Facilities District No. 19M (Freeway Commercial 2) (“CFD No. 19M”). THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 19M (FREEWAY COMMERCIAL 2), DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. This City Council does, by the passage of this ordinance, authorize the levy of special taxes on taxable properties located in CFD No. 19M pursuant to the Rate and Method of Apportionment of Special Taxes as set forth in Exhibit “A” attached hereto and incorporated herein by this reference (the “Rate and Method”). SECTION 2. This City Council, acting as the legislative body of CFD No. 19M, is hereby further authorized, by resolution, to annually determine the special tax to be levied within CFD No. 19M for the then current tax year or future tax years; provided, however, the special tax to be levied shall not exceed the maximum special tax authorized to be levied pursuant to the Rate and Method. SECTION 3. The special taxes herein authorized to be levied, to the extent possible, shall be collected in the same manner as ad valorem property taxes and shall be subject to the same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad valorem taxes; provided, however, CFD No. 19M may utilize a direct billing procedure for any special taxes that cannot be collected on the County tax roll or may, by resolution, elect to collect the special taxes at a different time or in a different manner if necessary to meet its financial obligations. SECTION 4. The special taxes authorized to be levied shall be secured by the lien imposed pursuant to Sections 3114.5 and 3115.5 of the Streets and Highways Code of the State of California, which lien shall be a continuing lien and shall secure each levy of the special taxes. 2017-05-23 Agenda Packet Page 71 SECOND READING AND ADOPTION 09960.00000\29690382.1 2 The lien of the special taxes shall continue in force and effect until the special tax ceases to be levied by the City Council in the manner provided in Section 53330.5 of said Government Code. SECTION 5. This Ordinance shall be effective thirty (30) days after its adoption. Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance to be published in a newspaper of general circulation in the City pursuant to the provisions of Chula Vista’s City Charter, Section 312(b). Introduced at a regular meeting of the City Council of the City of Chula Vista, California, on May 16, 2017; Enacted at a regular meeting of the City Council of the City of Chula Vista, California, held on the ______ day of ________________, 2017, by the following vote: AYES: NOES: ABSTAIN: ABSENT: PREPARED BY:APPROVED AS TO FORM BY: Kelly G. Broughton FASLA Glen R. Googins Director of Developmental Services City Attorney 2017-05-23 Agenda Packet Page 72 SECOND READING AND ADOPTION 09960.00000\29690382.1 A-1 EXHIBIT A RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO. 19M (FREEWAY COMMERCIAL 2) 2017-05-23 Agenda Packet Page 73 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 1 RATE AND METHOD OF APPORTIONMENT FOR CITY OF CHULA VISTA COMMUNITY FACILITIES DISTRICT NO.19M (FREEWAY COMMERCIAL 2) A Special Tax as hereinafter defined shall be levied on each Assessor's Parcel of Taxable Property within the City of Chula Vista Community Facilities District No.19M (Freeway Commercial 2)(“CFD No.19M”) and collected each Fiscal Year commencing in Fiscal Year 2017-2018 in an amount determined by the CFD Administrator through the application of the Special Tax for Taxable Property as described below. All of the Taxable Property within CFD No.19M, unless exempted by law or by the provisions hereof, shall be taxed for the purposes to the extent and in the manner herein provided. A.GENERAL DEFINITIONS The terms hereinafter set forth have the following meaning: “Acre”or “Acreage”means the land area of an Assessor’s Parcel as shown on County records, such as an Assessor’s Parcel Map or secured roll data, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on the applicable Final Subdivision Map, condominium plan, record of survey, or other recorded document creating or describing the parcel. If the preceding maps for a land area are not available, the Acreage of such land area may be determined utilizing available spatial data and GIS.The square footage of an Assessor’s Parcel is equal to the Acreage multiplied by 43,560. “Act”means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Division 2 of Title 5 of the Government Code of the State of California. “Administrative Expenses”means the actual or reasonably estimated costs incurred by the City acting for and on behalf of the CFD as administrator thereof, to determine, levy and collect the Special Taxes, in responding to public inquiries regarding the Special Taxes, including salaries of City employees and a proportionate amount of the City’s general administ rative overhead related thereto;the fees of consultants and legal counsel providing services related to the administration of the CFD; any amounts estimated or advanced by the City or CFD for any other administrative purposes; and any other costs required to administer the CFD as determined by the City. “Assessor’s Parcel”means a lot or parcel shown in an Assessor’s Parcel Map with an assigned assessor’s parcel number. “Assessor’s Parcel Map”means an official map of the County Assessor of the County designating lots or parcels by an Assessor’s Parcel number. “Authorized Services”means those authorized maintenance activities and/or services, and expenses that may be funded by CFD No. 19M pursuant to the Act as amended, including, without limitation, those services authorized to be funded by CFD No. 19M as set forth in the documents adopted by the City Council at the time CFD No. 19M was formed. 2017-05-23 Agenda Packet Page 74 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 2 “Building Square Foot” or “Square Footage”means the square footage as shown on a building permit for an Assessor’s Parcel of Non-Residential Property. “Capital Replacement Reserve Fund”means a fund that shall be maintained for the CFD for each Fiscal Year to provide for the accumulation and holding of funds for long-term capital projects, asset replacement, or other large anticipated expenditures. “CFD Administrator”means an official of the City, or designee thereof, responsible for determining the Special Tax Requirement and providing for the levy and collection of the Special Taxes. “CFD No.19M”or “CFD”means City of Chula Vista Community Facilities District No.19M (Freeway Commercial 2). “City”means the City of Chula Vista. “City Council”means the City Council of the City, acting as the legislative body of CFD No.19M. “City Finance Director”means the Finance Director of the City or his or her designee. “City Manager”means the City Manager of the City or his or her designee. “County”means the County of San Diego. “County Assessor”means the Assessor of the County or his or her designee. “County Recorder”means the Recorder of the County or his or her designee. “Community Purpose Facility Property”or “CPF Property”means all Assessor’s Parcels that are classified as community purpose facilities and meet the requirements of Chula Vista Municipal Code Section 19.48.025, as amended from time to time. “Construction Cost Index”means, for any Fiscal Year, the applicable Construction Cost Index for the Los Angeles Area as set forth in the Engineering News Record for July of the preceding Fiscal Year.In the event that this rate is no longer published or provided, the CFD Administrator shall choose a comparable rate to use in its place. “Consumer Price Index for Urban Wage Earners and Clerical Workers”or “CPI-W”means the applicable CPI-W as set forth by the United States Department of Labor, Bureau of Labor Statistics for July of the preceding Fiscal Year.In the event that this rate is no longer published or provided, the CFD Administrator shall choose a comparable rate to use in its place. “Density”means for each Assessor’s Parcel of Single Family Property the number of Dwelling Units per gross Acre as determined based on the approved tentative map or approved tentative parcel map entitling the development unless otherwise approved in writing by the City Manager. “Developed Property”means all Taxable Property for which a building permit was issued prior to the March 1st preceding the Fiscal Year in which the Special Tax is being levied. 2017-05-23 Agenda Packet Page 75 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 3 “Dwelling Unit”or “DU”means each separate residential dwelling unit that comprises an independent facility capable of conveyance or rental separate from adjacent residential dwelling units. “Estimated Special Tax Delinquency Amount”a reasonable estimate of delinquencies expected to occur in the Fiscal Year in which the Special Tax will be levied based on the delinquency rate for Special Taxes levied in the previous Fiscal Year. “Exempt Property”means all Assessors’ Parcels that are exempt from the Special Tax pursuant to law or Section E herein. “Final Subdivision Map”means a subdivision of property creating residential or non-residential buildable lots by recordation of a Final Subdivision Map or parcel map pursuant to the Subdivision Map Act (California Government Code Section 66410 et seq.), or recordation of a cond ominium plan pursuant to the California Civil Code 1352, that creates individual lots for which building permits may be issued without further subdivision and is recorded prior to March 1st preceding the Fiscal Year in which the Special Tax is being levied. “Fiscal Year”means the period starting July 1st and ending on the following June 30th. “Hotel Property”means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one or more structures comprising of individual sleeping or living units, except as otherwise provided herein, for the accommodation of transient guests. “Land Use Class”means any of the classes listed in Table 1. “Maximum Special Tax”means the Maximum Special Tax, determined in accordance with Section C, which may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable Property. “Multi-Family Property”means all Assessor’s Parcels of Residential Property consisting of two or more for-rent Dwelling Units that share common walls, including, but not limited to, apartments and Residential Property that are not for sale to an end user and are under common management. “Non-Residential Property”means all Assessor’s Parcels of Developed Property,for which a building permit(s) has been issued for a structure or structures for non-residential use, excluding Hotel Property. “Otay Water District Commodity Rate”means the maximum rate charged by the Otay Water District for recycled water on the preceding July 1st of any Fiscal Year.In the event that this rate is no longer published or provided, the CFD Administrator shall choose a comparable rate to use in its place. “Property Owner Association Property”means any Assessor’s Parcel within the boundaries of the CFD that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the County Recorder to, a property owner association, including any master or sub-association. 2017-05-23 Agenda Packet Page 76 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 4 “Proportionately”means for Taxable Property that the ratio of the Special Tax to the Maximum Special Tax is equal for all Taxable Property levied within each Land Use Class within CFD No.19M. “Public Property”means any property within the boundaries of CFD No.19M which (i) is owned by a public agency or expected to be owned by a public agency at the time of CFD formation, (ii) has been irrevocably offered for dedication to a public agency, or (iii) is designated with specific boundaries and acreage on a Final Subdivision Map as property which will be owned by a public agency.For purposes of this definition, a public agency includes the federal government, the State of California, the County, the City,or any other public agency. “Operating Reserve Fund”means a fund that shall be maintained for the CFD each Fiscal Year to provide necessary cash flow for the first six months of each Fiscal Year, working capital to cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of S pecial Taxes and a reasonable buffer to prevent large variations in annual Special Tax levies. “Residential Property”means all Assessor’s Parcels of Developed Property for which a building permit(s) has been issued for purposes of constructing one or more residential Dwelling Unit(s). “Single Family Property”means all Assessor’s Parcels of Residential Property consisting of one or more Dwelling Unit(s) that may or may not share common walls with one or more other Dwelling Unit(s), including, but not limited to, duplexes, triplexes, townhomes, condominiums ,and other Residential Properties that are for sale to an end user and are not under common management. “Special Tax”means the Special Tax levied in each Fiscal Year on each Assessor’s Parcel of Taxable Property to fund the Special Tax Requirement. “Special Tax Requirement”means the amount, as determined by the CFD Administrator, for any Fiscal Year to: (i) pay the costs of providing the Authorized Services during such Fiscal Year, (ii) pay Administrative Expenses associated with the Special Tax, (iii) establish or replenish the Operating Reserve Fund, (iv)establish or replenish the Capital Replacement Reserve Fund, (v)pay for the replacement costs of park or other public improvements within the CFD, (v i)pay incidental expenses related to the Authorized Services as authorized pursuant to the Act, (vii) fund an amount equal to the Estimated Special Tax Delinquency Amount,and (viii) fund the shortfall, if any, in the Special Tax revenues collected in the preceding Fiscal Year where such shortfall resulted from delinquencies in the payment of Special Taxes in such Fiscal Year that exceeded the Estimated Special Tax Delinquency Amount included in the Special Tax Requirement for the preceding Fiscal Year, less (ix) any excess funds available in the Operating Reserve Fund,Capital Replacement Reserve Fund, or other funds associated with CFD No. 19M as determined by the City Finance Director. “State”means the State of California. “Taxable Property”means all of the Assessor’s Parcels within the boundaries of CFD No.19M,that are not Exempt Property from the CFD No.19M Special Tax pursuant to law or Section E. “Undeveloped Property”means for each Fiscal Year, all Taxable Property not classified as Developed Property. 2017-05-23 Agenda Packet Page 77 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 5 B.ASSIGNMENT TO CATEGORIES OF SPECIAL TAX Each Fiscal Year, beginning with Fiscal Year 2017-2018, using the definitions above, each Assessor’s Parcel within CFD No. 19M shall be classified by the CFD Administrator as Taxable Property or Exempt Property.Commencing with Fiscal Year 2017-2018 and for each subsequent Fiscal Year, Taxable Property shall be subject to the levy of Special Taxes pursuant to Section C.In addition,in each such Fiscal Year, each Assessor’s Parcel of Taxable Property shall be further classified by the CFD Administrator as Developed Property or Undeveloped Property. Developed Property shall be further assigned to a Land Use Class as specified in Table 1 of Section C. The Land Use Class of each Assessor’s Parcel shall be determined based on the records of the County Assessor or other such information provided by the City.In some instances, an Assessor’s Parcel of Developed Property may contain more than one Land Use Class.The Maximum Special Tax determined on such Assessor’s Parcel shall be the sum of the Maximum Special Taxes for a ll Land Use Classes located on that Assessor’s Parcel. 2017-05-23 Agenda Packet Page 78 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 6 C.MAXIMUM SPECIAL TAX RATE The Maximum Special Tax for any Assessor’s Parcel classified as Developed Property or Undeveloped Property shall be determined by reference to Table 1 and the paragraphs that follow Table 1. TABLE 1 Maximum Special Tax for Developed and Undeveloped Property Community Facilities District No. 19M Fiscal Year 2017-2018 Land Use Class Maximum Special Tax Component for Labor Maximum Special Tax Component for Water Maximum Special Tax Component for Asset Replacement Fiscal Year 2017-2018 Maximum Special Tax Single Family Property with Density (DU/Acre) of <19 $803.23 per DU $223.47 per DU $43.30 per DU $1,070.00 per DU Single Family Property with Density (DU/Acre)of >19 $481.94per DU $134.08 per DU $25.98 per DU $642.00 per DU Multi-Family Property $2,614.63 per Acre $727.41 per Acre $140.96 per Acre $3,483.00 per Acre Non-Residential Property $0.32 per Building Square Foot $0.09 per Building Square Foot $0.02 per Building Square Foot $0.43 per Building Square Foot Hotel Property $4,329.94 per Acre $1,204.62 per Acre $233.44 per Acre $5,768.00 per Acre Undeveloped Property $7,314.65 per Acre $2,034.99 per Acre $394.36 per Acre $9,744.00 per Acre The Maximum Special Tax shall be equal to the sum of the Maximum Special Tax Component for Labor, Maximum Special Tax Component for Water and Maximum Special Tax Component for Asset Replacement as shown in Table 1. In determining the Maximum Special Tax,the Maximum Special Tax Components for each Land Use Class shall be increased in the 2018-2019 Fiscal Year and each Fiscal Year thereafter, as follows: 1.The annual percentage change of the Maximum Special Tax Component for Labor shall be equal to the annual percentage change for the July immediately preceding the current Fiscal 2017-05-23 Agenda Packet Page 79 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 7 Year and compared to the previous year’s Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W); and 2.The annual percentage change of the Maximum Special Tax Component for Water shall be equal to the annual percentage change for the July immediately preceding the current Fiscal Year and compared to the previous year’s Otay Water District Commodity Rate; and 3.The annual percentage change of the Maximum Special Tax Component for Asset Replacement shall be equal to the annual percentage change for the July immediately preceding the current Fiscal Year and compared to the prior year’s Construction Cost Index. The Fiscal Year 2017-2018 Maximum Special Tax shall be equal to the Fiscal Year 2017-2018 Maximum Special Tax rates listed in Table 1.In each subsequent Fiscal Year, the Maximum Special Tax Components shall be increased by the escalation factor outlined above in Section C (1,2, and 3), provided the Maximum Special Tax Component for Labor, the Maximum Special Tax Component for Water and the Maximum Special Tax Component for Asset Replacement shall never be less than two percent (2%) and not greater than six percent (6%)of the maximum amounts in the preceding Fiscal Year, respectively. D.METHOD OF APPORTIONMENT OF SPECIAL TAX Commencing with Fiscal Year 2017-2018, and for each subsequent Fiscal Year, the CFD Administrator shall levy the Special Tax at the rates established in Section C on all Taxable Property within CFD No. 19M until the total amount of Special Tax levied equals the Special Tax Requirement. The Special Tax shall be levied each Fiscal Year as follows: 1.The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed Property within the CFD up to one hundred percent (100%) of the applicable Maximum Special Tax. 2.If additional monies are needed to satisfy the Special Tax Requirement after Developed Property has been levied one hundred percent (100%) of their Maximum Special Tax, the remaining amount needed to satisfy the Special Tax Requirement shall be levied Proportionately on each Assessor’s Parcel of Undeveloped Property at up to one hundred percent (100%) of the Maximum Special Tax on Undeveloped Property. Notwithstanding the above, under no circumstances will the Special Tax levied against any Assessor’s Parcel of Residential Property be increased because of delinquency or default by the owner of any other Assessor’s Parcel within the CFD by more than ten percent (10%) above what such Special Tax would have been in the absence of delinquencies. E.EXEMPTIONS The CFD Administrator shall classify the following as Exempt Property: Public Property,Property Owner Association Property,Community Purpose Facility Property,and Assessor’s Parcels with 2017-05-23 Agenda Packet Page 80 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 8 public or utility easements making impractical their utilization for any use other than the purposes set forth in the easement. If the use of an Assessor's Parcel changes so that such Assessor's Parcel is no longer eligible to be classified as Exempt Property under this section,such Assessor’s Parcel shall be deemed to be Taxable Property. F.PREPAYMENT OF SPECIAL TAX The Maximum Special Tax may not be prepaid and shall continue to be levied in accordance with Section D of this Rate and Method of Apportionment on an annual basis on all Taxable Property in CFD No. 19M for the purpose of funding ongoing Authorized Services. G.REVIEW/APPEALS The CFD Administrator may establish such procedures, as it deems necessary to undertake the review of any such appeal.The CFD Administrator shall interpret this Rate and Method of Apportionment and make determinations relative to the annual administration of the Special Tax and any property owner appeals, as herein specified. Any property owner who feels that the amount of the Special Tax levied on their Assessor’s Parcel is in error shall first consult with the CFD Administrator regarding such error.If following such consultation,the CFD Administrator determines that an error has occurred;the CFD Administrator in consultation with the City Finance Director shall take any of the following actions to correct the error: Amend the Special Tax levy on the property owner’s Assessor’s Parcel(s) for the current Fiscal Year, Require the CFD to reimburse the property owner for the amount of the overpayment for the current Fiscal Year to the extent of available CFD funds,or Grant a credit against, eliminate or reduce the future Special Taxes on the property owner’s Assessor’s Parcel(s)for overpayment for the current Fiscal Year. If following such consultation and action (if any by the CFD Administrator), the property owner believes such error still exists, such person may file a written notice with the City Finance Director appealing the amount of the Special Tax levied on such Assessor's Parcel. If following such consultation and action (if any by the City Finance Director), the property owner believes such error still exists, such person may file a written notice with the City Council appealing the amount of the Special Tax levied on such Assessor's Parcel.If the City’s Finance Director, City Council or designee determines an error exists;the CFD Administrator shall take any actions as described above, in order to correct the error.The decision of the City Council shall be final and binding to all persons. 2017-05-23 Agenda Packet Page 81 City of Chula Vista -Community Facilities District No. 19M March 27, 2017 (Freeway Commercial 2)Page 9 H.INTERPRETATIONS The CFD Administrator may make interpretations.If necessary, interpretations may be made by the City Council, by ordinance or resolution, for purposes of clarifying any vagueness or ambiguity as it relates to this Rate and Method of Apportionment. I.MANNER OF COLLECTION The annual Special Tax shall be collected in the same manner and at the same time as ordinary ad valorem property taxes; provided, however, that CFD No.19M, may, at the sole discretion of the City, directly bill the Special Tax,and may collect the Special Taxes at a different time or in a different manner as necessary to meet its financial obligations. J.REPEAL OF SPECIAL TAX If the levy of the Special Tax is repealed by initiative or any other action participated in by the property owners of Assessor’s Parcels in CFD No.19M, the City shall cease to levy the Special Tax and shall cease to be obligated to provide the Authorized Services for which the Special Tax was levied. The obligation to provide the Authorized Services previously funded by the repealed Special Tax shall become the joint obligations of the property owners of Assessor’s Parcels within CFD No. 19M. K.TERM OF SPECIAL TAX The Maximum Special Tax shall be levied commencing in Fiscal Year 2017-2018 and shall be levied in perpetuity, unless and until such time the City determines that revenues are no longer needed to pay the Special Tax Requirement. 2017-05-23 Agenda Packet Page 82 City of Chula Vista Staff Report File#:17-0223, Item#: 3. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 19.14 OF THE CHULA VISTA MUNICIPAL CODE (CVMC) BY ADDING A NEW SECTION CREATING AN INITIATION PROCESS FOR AMENDMENTS TO THE GENERAL PLAN, SECTIONAL PLANNING AREA PLANS, GENERAL DEVELOPMENT PLANS, SPECIFIC PLANS, PRECISE PLANS (LAND USE PLANS) AND FOR REZONING (SECOND READING AND ADOPTION) RECOMMENDED ACTION Council adopt the ordinance. SUMMARY Under the City Municipal Code, applicants can submit land use plan amendment and rezoning requests to the City. Currently these legislative action requests are processed as part of proposed development projects and consolidated with all other discretionary actions necessary for City consideration of the applicant’s project. As part of some recent development projects, concerns were raised on the part of staff about the merits of the plan amendment being proposed and applicants were advised that staff could not support the overall project proposal as a result. In these instances, the applicant has been placed in a position of deciding to forgo their project, or to spend money and significant time to develop their proposal, conduct appropriate environmental impact analysis, and to process it through the City with no early mechanism to gauge the potential interest of the Planning Commission or City Council in the plan amendment or rezoning being requested. As a means to address this situation, staff is proposing the attached amendments to the Municipal Code. The amendments provide a process for City Council to communicate its willingness to consider a proposed plan amendment or rezoning by its willingness to accept an application and allocate staff resources to its processing. The City Council would retain full discretion to approve or disapprove the proposal once it was fully analyzed. The proposed initiation process would also address another community concern by allowing for early public knowledge and involvement in an important land use change being considered by the City before a specific development project is submitted. ENVIRONMENTAL REVIEW Environmental Notice The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. In addition, notwithstanding the foregoing, the “Project” also qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Environmental Determination The Director of Development Services has reviewed the proposed activity for compliance with the City of Chula Vista Printed on 5/18/2017Page 1 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 83 File#:17-0223, Item#: 3. The Director of Development Services 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 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. In addition, notwithstanding the foregoing, the Director of Development Services has also determined that the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the CEQA State Guidelines. Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION On March 22, 2017 the Planning Commission voted 4-1-0 to approve Resolution No. MPA17-001 recommending that the Chula Vista City Council introduce the Ordinance with suggested revisions to include: 1. Adding Planning Commission as a body the applicant can also go to request a recommendation for an initiation; and 2. Ordinance language that the ordinance be reviewed in a year. A revised ordinance with Planning Commission’s recommendations has been drafted for City Council Consideration. DISCUSSION There are some California jurisdictions that require certain plan amendments and rezones to go through a preliminary step to initiate the approval process. The initiation is the first point of consideration by a decision maker. It is a limited decision and is neither an approval nor denial of the proposed plan amendment or rezone, or the accompanying development project. The focus of the initiation process is on the question of whether the nature of the proposed change to the plan or zoning warrants expending staff and applicant’s future resources in light of initiation criteria proposed in the draft ordinance. Three criteria (Initiation Criteria) are being proposed to be used by City Council to decide whether to approve initiation: 1. The plan amendment or rezone request is consistent with the goals and policies of the General Plan and applicable Sectional Planning Area Plan, General Development Plan, Specific Plan, or Precise Plan; 2. The proposed plan amendment or rezone provides additional public benefit to the community as compared to the existing land use designation, density/intensity range, plan policy or site design; 3. Public facilities appear to be available to serve the proposed increase in density/intensity, or their provision will be addressed as a component of the amendment process. The focus of the initiation hearing would be upon the fundamental question of whether the proposed change to the plan or zone is worthy of further analysis based upon compliance with the above Initiation Criteria. This proposed process would not impact City initiated plan amendments or rezonings undertaken by City of Chula Vista Printed on 5/18/2017Page 2 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 84 File#:17-0223, Item#: 3. This proposed process would not impact City initiated plan amendments or rezonings undertaken by staff as part of a City work program. 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 Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). 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 creation of a land use plan amendment and rezoning initiation process promotes operational excellence by providing a predictable and less costly process for considering the merits of land use plan amendments or rezoning actions. The proposed process also fosters a connected community by encouraging citizen involvement early in the important consideration of whether to amend a land use plan or to rezone a property. CURRENT YEAR FISCAL IMPACT None ONGOING FISCAL IMPACT The cost of City processing land use plan amendments or rezoning initiations will be borne by project applicants. ATTACHMENTS Attachment 1 - Planning Commission Alternative Ordinance Attachment 2 - Planning Commission Draft Minutes for 3/22/2017 Meeting Staff Contact: Kelly Broughton, Director of Development Services City of Chula Vista Printed on 5/18/2017Page 3 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 85 SECOND READING AND ADOPTION C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@F004A3B4\@BCL@F004A3B4.doc ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHAPTER 19.14 OF THE CHULA VISTA MUNICIPAL CODE (CVMC) BY ADDING A NEW SECTION CREATING AN INITIATION PROCESS FOR AMENDMENTS TO THE GENERAL PLAN, SECTIONAL PLANNING AREA PLANS, GENERAL DEVELOPMENT PLANS, SPECIFIC PLANS, PRECISE PLANS (LAND USE PLANS) AND FOR REZONING WHEREAS, Chula Vista’s Municipal Code provides for City Council adoption of the General Plan, Sectional Planning Area Plans, General Development Plans, Specific Plans, Precise Plans (Land Use Plans) and rezoning; and WHEREAS, in cases where development project applicants seek to amend land use plans or propose rezoning actions, there is no simplified process for them to determine whether City Council feels there is merit enough in the applicant’s proposal to authorize staff to accept their application, conduct appropriate environmental impact analysis, and to process it through Planning Commission and on to final decision by the City Council; and WHEREAS, creating a new process allowing for the initiation of review by the City Council of certain proposed land use plan amendments and rezoning actions will also allow for earlier public notification and input on significant potential land use revisions; and WHEREAS, a City Council decision to allow certain proposed land use plan amendments and rezoning actions to move forward is not an approval of said proposed potential land use plan amendments and rezoning actions nor is it any predetermination by the City Council of said proposed potential land use plan amendments and rezoning actions as City Council will conduct a complete review of said proposed land use plan amendments and rezoning actions, including any required environmental analysis, along with the merits of an accompanying proposed project; and WHEREAS, because this activity will not result in any approval or denial of said proposed potential land use plan amendments and rezoning actions and because City Council will conduct a complete review of said proposed potential land use plan amendments and rezoning actions, including any required environmental analysis, along with the merits of an accompanying proposed project, the Director of Development Services has determined that the activity is not a “Project” as defined under Section 15378 of the State California Quality Act (CEQA) Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the CEQA State Guidelines, the activity is not subject to CEQA. In addition, notwithstanding the foregoing, the Director of Development Services has also determined that the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the CEQA State Guidelines. Thus, no environmental review is required. NOW THEREFORE the City Council of the City of Chula Vista does hereby ordain as follows: 2017-05-23 Agenda Packet Page 86 Ordinance Page 2 Section I. Chapter 19.14 of the Chula Vista Municipal Code is hereby amended by adding Sections 19.14.800 thru 19.14.860 (attached hereto as Exhibit 1) to add an initiation process to allow development project applicants to seek City Council direction to authorize staff to work on proposed land use plan amendments or rezoning actions. Section II. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section III. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by:Approved as to form by: _____________________________________ ____________________________________ Kelly Broughton Glen R. Googins Director of Development Services City Attorney 2017-05-23 Agenda Packet Page 87 Exhibit 1 19.14.800 Initiation of Amendments to the General Plan, Sectional Planning Area Plans, General Development Plans, Specific Plans, and Precise Plans and Rezonings 19.14.810 Purpose of Initiation Procedures The purpose of these procedures is to establish a process for the initiation of General Plan, Sectional Planning Area Plans, General Development Plans, Specific Plans, and Precise Plans (Land Use Plan Amendments)or rezoning of any property within the City of Chula Vista. The initiation process is intended to seek City Council direction on whether to commit City resources to potentially make changes to a Land Use Plan or to rezone property within the City of Chula Vista. The initiation process is not intended for every proposed Land Use Plan Amendment or rezoning of property and City staff are hereby exempted from it. It is only intended for Land Use Plan Amendments proposed by a private person that from the outset may or may not have the support of staff, and as such are being referred to the City Council for review. 19.14.815 Initiation Approval Does Not Constitute Project Approval The City Council hereby finds that these procedures do not commit the City to any definite course of action, including, but not limited to, approval or denial of any proposed Land Use Plan Amendments or rezoning prior to California Environmental Quality Act (CEQA) review being conducted. Rather, these procedures set forth the City’s intent to give staff direction to further explore the merits of any proposed Land Use Plan Amendment or rezone commensurate with the submittal of a future project. Notwithstanding the foregoing, nothing in these procedures will be construed as circumscribing or limiting the City’s exercise of discretion with respect to any future Land Use Plan Amendment or rezone in connection with a project. Any and all future discretionary actions may be exercised in the sole and absolute discretion of the City. The party requesting a potential Land Use Plan Amendment or rezone assumes the risk, and in accordance with the application for initiation, shall waive, release, defend, protect and indemnify the City from and against any claims alleging City approval of the initiation approval request constituted an approval of the proposed Land Use Plan Amendment or rezoning. 19.14.820 When an Initiation Application Is Required Subject to applicable laws, the City is under no obligation to process a private request for a Land Use Plan Amendment or rezoning. A private proposal to amend a Land Use Plan or to rezone any property in the City may be requested for City approval by filing an application for initiation. 19.14.830 Initiation Application Process An initiation application for a Land Use Plan Amendment or rezone shall be filed with the City Manager, or designee,in accordance with the following requirements: (a) Authority to File an Application. The following persons are deemed to have the authority to file an application: 2017-05-23 Agenda Packet Page 88 (1) The record owner of the real property that is the subject of the Land Use Plan Amendment or rezone; (2) The property owner’s authorized agent; or (3) Subject to the City Manager’s approval, any other person who can demonstrate a legal right, interest, or entitlement to the use of the real property subject to the application. (b) Submittal Requirements. The application shall be made on a form provided by the City Manager and shall be accompanied by the materials, information, fees, and deposits that are required on the date the application is filed. The application shall be deemed complete when the department processing the application has determined that the application includes all of the information, materials, fees, and deposits required by this section. The City may, in the course of processing the application, request that the applicant clarify, simplify, or provide in alternate format or medium, the information required for the application. (c) Materials and Information. The City Manager shall maintain a list specifying the materials and information to be submitted with each initiation application for a Land Use Plan Amendment or a rezone. The list may be revised on a quarterly basis or as needed to comply with revisions to local, state, or federal law, regulation, or policy. The subject list shall be available at the Development Services Division of the Planning Department and shall apply to all applications submitted. 19.14.840 Criteria for Approval of an Initiation of Amendments to Land Use Plans or rezone (a) An application of initiation of an amendment to a Land Use Plan or zone may be approved by the City Council if all of the following criteria are met: (1) The proposed Land Use Plan Amendment or rezone is consistent with the goals and policies of the General Plan; (2) The proposed Land Use Plan Amendment or rezone provides equal or greater public benefit to the community as compared to the existing land use designation, density/intensity range, or plan policy; and (3) Public facilities are available to serve the proposed change in land use designation or density/intensity, or their provision will be addressed as a component of the Land Use Plan Amendment or rezoning process. 19.14.850 Process for Approval of an Initiation of Land Use Plan Amendment or Rezone Land Use Plan Amendment or rezoning initiation requests shall be decided by City Council at a public hearing noticed in accordance with CVMC 19.12.070. The decision shall be limited to whether staff should be directed to accept a formal application for a Land Use Plan Amendment 2017-05-23 Agenda Packet Page 89 or rezone and to bring the action and appropriate environmental review through the Planning Commission for recommendation and to City Council for final consideration at a future date. Initiation actions shall not commit staff nor future decision makers to a specific recommendation on the proposal or to any specific future action. The Planning Commission and City Council reserve the right to exercise their police power and land use authority with respect to any future Land Use Plan Amendment or rezone in their sole and absolute discretion as required by and in accordance with applicable laws. Initiation requests shall be heard by City Council within 40 business days from the date the initiation application is deemed complete. 2017-05-23 Agenda Packet Page 90 Exhibit 1 Planning Commission Alternative Ordinance 19.14.800 Initiation of Amendments to the General Plan, Sectional Planning Area Plans, General Development Plans, Specific Plans, and Precise Plans and Rezonings 19.14.810 Purpose of Initiation Procedures The purpose of these procedures is to establish a process for the initiation of General Plan, Sectional Planning Area Plans, General Development Plans, Specific Plans, and Precise Plans (Land Use Plan Amendments) or rezoning of any property within the City of Chula Vista. The initiation process is intended to seek Planning Commission or City Council direction on whether to commit City resources to potentially make changes to a Land Use Plan or to rezone property within the City of Chula Vista. The initiation process is not intended for every proposed Land Use Plan Amendment or rezoning of property and City staff are hereby exempted from it. It is only intended for Land Use Plan Amendments proposed by a private person that from the outset may or may not have the support of staff, and as such are being referred to the Planning Commission or City Council for review. 19.14.815 Initiation Approval Does Not Constitute Project Approval The City Council hereby finds that these procedures do not commit the City to any definite course of action, including, but not limited to, approval or denial of any proposed Land Use Plan Amendments or rezoning prior to California Environmental Quality Act (CEQA) review being conducted. Rather, these procedures set forth the City’s intent to give staff direction to further explore the merits of any proposed Land Use Plan Amendment or rezone commensurate with the submittal of a future project. Notwithstanding the foregoing, nothing in these procedures will be construed as circumscribing or limiting the City’s exercise of discretion with respect to any future Land Use Plan Amendment or rezone in connection with a project. Any and all future discretionary actions may be exercised in the sole and absolute discretion of the City. The party requesting a potential Land Use Plan Amendment or rezone assumes the risk, and in accordance with the application for initiation, shall waive, release, defend, protect and indemnify the City from and against any claims alleging City approval of the initiation approval request constituted an approval of the proposed Land Use Plan Amendment or rezoning. 19.14.820 When an Initiation Application Is Required Subject to applicable laws, the City is under no obligation to process a private request for a Land Use Plan Amendment or rezoning. A private proposal to amend a Land Use Plan or to rezone any property in the City may be requested for City approval by filing an application for initiation. 19.14.830 Initiation Application Process An initiation application for a Land Use Plan Amendment or rezone shall be filed with the City Manager, or designee, in accordance with the following requirements: 2017-05-23 Agenda Packet Page 91 (a) Authority to File an Application. The following persons are deemed to have the authority to file an application: (1) The record owner of the real property that is the subject of the Land Use Plan Amendment or rezone; (2) The property owner’s authorized agent; or (3) Subject to the City Manager’s approval, any other person who can demonstrate a legal right, interest, or entitlement to the use of the real property subject to the application. (b) Submittal Requirements. The application shall be made on a form provided by the City Manager and shall be accompanied by the materials, information, fees, and deposits that are required on the date the application is filed. The application shall be deemed complete when the department processing the application has determined that the application includes all of the information, materials, fees, and deposits required by this section. The City may, in the course of processing the application, request that the applicant clarify, simplify, or provide in alternate format or medium, the information required for the application. (c) Materials and Information. The City Manager shall maintain a list specifying the materials and information to be submitted with each initiation application for a Land Use Plan Amendment or a rezone. The list may be revised on a quarterly basis or as needed to comply with revisions to local, state, or federal law, regulation, or policy. The subject list shall be available at the Development Services Division of the Planning Department and shall apply to all applications submitted. 19.14.840 Criteria for Approval of an Initiation of Amendments to Land Use Plans or rezone (a) An application of initiation of an amendment to a Land Use Plan or zone may be approved by the Planning Commission or City Council if all of the following criteria are met: (1) The proposed Land Use Plan Amendment or rezone is consistent with the goals and policies of the General Plan; (2) The proposed Land Use Plan Amendment or rezone provides equal or greater public benefit to the community as compared to the existing land use designation, density/intensity range, or plan policy; and (3) Public facilities are available to serve the proposed change in land use designation or density/intensity, or their provision will be addressed as a component of the Land Use Plan Amendment or rezoning process. 2017-05-23 Agenda Packet Page 92 19.14.850 Process for Approval of an Initiation of Land Use Plan Amendment or Rezone Land Use Plan Amendment or rezoning initiation requests shall be decided by Planning Commission or City Council at a public hearing noticed in accordance with CVMC 19.12.070. The decision shall be limited to whether staff should be directed to accept a formal application for a Land Use Plan Amendment or rezone and to bring the action and appropriate environmental review through the Planning Commission for recommendation and to City Council for final consideration at a future date. Initiation actions shall not commit staff nor future decision makers to a specific recommendation on the proposal or to any specific future action. The Planning Commission and City Council reserve the right to exercise their police power and land use authority with respect to any future Land Use Plan Amendment or rezone in their sole and absolute discretion as required by and in accordance with applicable laws. Initiation requests shall be heard by City Council within 40 business days from the date the initiation application is deemed complete. A staff review of the application of this ordinance to specific initiation requests should be conducted within a year of the effective date of the ordinance. The results of this review shall be provided to Planning Commission and City Council upon request. 2017-05-23 Agenda Packet Page 93 Minutes REGULAR MEETING OF THE PLANNING COMMISSION OF THE CITY OF CHULA VISTA March 22, 2017 Council Chambers 6:00 p.m.276 Fourth Avenue, Chula Vista, CA CALL TO ORDER MEMBERS PRESENT Calvo, Liuag, Nava, Zaker and Chair Gutierrez MEMBERS ABSENT:Anaya MOTION TO EXCUSE Anaya MSC: Calvo/Liuag Motion Passed: 5-0-1 PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE OPENING STATEMENT: 1.Approval of Minutes February 22, 2017 MSC: Liuag/Zaker Motion passed: 5-0-1 2.PUBLIC HEARING: CUP15-0032 CONSIDERATION OF A CONDITIONAL USE PERMIT TO INSTALL, USE, AND MAINTAIN AN UNMANNED WIRELESS TELECOMMUNICATIONS FACILITY (WTF) CONSISTING OF TWELVE (12) PANEL ANTENNAS MOUNTED ON A 43-FT. HIGH ANTENNA STRUCTURE DESIGNED TO RESEMBLE A PALM TREE (MONOPALM) AND ASSOCIATED EQUIPMENT LOCATED AT 409 TELEGRAPH CANYON ROAD. Applicant: Verizon Wireless Project Manager: Jeff Steichen, Associate Planner Staff Recommendation: That the Planning Commission adopt Resolution PCC15-0032, approving the proposed unmanned Wireless Telecommunications Facility, based on the findings and subject to the conditions contained therein. City of Chula Vista Boards & Commissions Planning Commission 2017-05-23 Agenda Packet Page 94 Planning Commission Minutes March 22, 2017 P a g e | 2 Jeff Steichen, Associate Planner and Project Manager, gave a short presentation showing photos/renderings of the current mono-flag pole and the proposed mono-palm. The new facility would consist of twelve (12) panel antennas mounted on a 43-foot high antenna structure designed to resemble a palm tree. He also showed a location map for the project located at 409 Telegraph Canyon Road. The 0.8-acre project site is a commercial retail center located on the north side of Telegraph Canyon Road directly west of Interstate 805. The project is proposed to be at the east end of and adjacent to the existing commercial building. The existing surrounding land uses include a) residential condos b) Telegraph Canyon Road c) I-805 Freeway and d) a commercial site – gas station. The replacement is necessary in order to provide expanded and greater capacity than the existing wireless facility is capable of providing. Questions to Staff: Nava – Is there any storage for equipment at the location and is the location of the pole going to be adjusted? Steichen – There is currently storage inside the existing commercial facility and there will be no change in the exterior location PUBLIC HEARING OPENED Lucila Garcia, representing Hilltop Village, spoke to the Commission regarding their concerns which included: 1.12 additional panels – are they to be moved toward the community complex? 2. Additional radio frequency waves – no discussion of environmental status/effects. 3. Can it be placed somewhere else; were other locations discussed? 4. They would like a map of the cell phone towers in Western Chula Vista. Ms. Shelly Kilbourn, representing Verizon addressed the community concerns: 1. The mono-palm will be moved only a few feet closer to the residential complex – it will still be at least 70 feet from the residential area. The additional height is due only to the ornamental “palm fronds”. 2. The 12 additional antennas will provide full strength and the best capacity for the cell tower. The FCC regulates the radio frequency capacity and Verizon has followed the guidelines. They would agree to do a study and provide the report. 3. This is the preferred site because one of the requirements is that it be in a commercial area and it is already zoned as CN (Commercial Neighborhood). PUBLIC HEARING CLOSED 2017-05-23 Agenda Packet Page 95 Planning Commission Minutes March 22, 2017 P a g e | 3 COMMISSION DELIBERATIONS There was discussion by the Commission regarding the inclination to approve the resolution if the applicant would provide a study to the City and homeowners. Ms. Garcia requested that, if a study is done, it be forwarded to the Hilltop Village Homeowner’s Association. City Deputy Attorney Silva stated that per the amended Telecommunications Act of 1996, the City is preempted from making a decision based directly or indirectly on the environmental impact of radio frequency issues. It was asked what would happen to the American flag which is being removed. Kilborn stated that it was the property of Verizon, but that she did not know what would happen to it. Several of the Commissioners said they would be happy to have it placed in their neighborhood. MSC: Liuag – with the condition added to the resolution that a radio frequency study be done and provided to the City and the Homeowner’s Association. Seconded by Calvo Vote: 5-0-1 **In consideration of a timely presentation for the applicants, the order of Item 3 and Item 4 was reversed so that Item 4 was heard prior to Item 3. Commissioner Calvo recused herself from Item 4. 4.PUBLIC HEARING DESIGN REVIEW (DR16-0021) TO CONSTRUCT 179 MULTI-FAMILY UNITS AND 418 PARKING SPACES ON 13.4 ACRES WITHIN THE VILLAGE 3 MASTER PLANNED COMMUNITY. Applicant: HomeFed SH Otay, LLC. Project Manager: Janice Kluth, Sr. Project Coordinator Staff Recommendation: That the Planning Commission adopt Resolution DR16-0021 for the development of a multi-family project, based on the findings and subject to the conditions contained therein. Project Manager Janice Kluth gave a slide presentation that included a location map, a description of the project i.e. 179 multi-family dwelling units, 418 parking spaces and 55,000 square-feet of open space. The presentation also provided site plan elements and a project analysis. PUBLIC HEARING OPENED John Vance, with Shea Homes, spoke in favor of the project and thanked Staff for helping two developers combine their efforts on one site. The partnering with Brookfield Homes is working well and they are both coming up with a quality home product. He continued to describe the project and stated that it would benefit all involved. Finally, he asked for the Commission’s support. PUBLIC HEARING CLOSED 2017-05-23 Agenda Packet Page 96 Planning Commission Minutes March 22, 2017 P a g e | 4 Commissioner Questions/Deliberations Q. Are these all apartments/condos and is there a Homeowner’s Association A. There will be a Master Association and then sub-Associations Q.There is a concern about garages and making sure residents use them properly Q. How will the open space be utilized and maintained? A. There will be a Management Company overseeing the site and the Homeowner’s Association will also enforce rules regarding upkeep, outside area maintenance – i.e. no towels draped, no clutter left outside. They are looking for young professionals who want to keep their surroundings nice and also the enforcement of the Homeowners’ Association. Q. There was a question about “walkability” and the possibility of a “transportation corridor” to allow young parents to get out and interact with their children in the outdoors. A. Trying to blend two product types and where they could they used the tri-plex so they could have backyard to backyard or townhomes that have courtyard. Corridors run between buildings and have trees lining a walking path. The connectivity to the whole Master Plan allows for more interaction. Q. There is 95% parking on-site. Where is the rest? A. Around the perimeter there are three sides for additional street parking. Q. There are two architectural designs – Spanish and Farmhouse. How are they blended? A. The row-homes contain Ranch and Spanish themes; the tri-plex contains Ranch, Spanish and Farmhouse styles. They are all part of the Master Plan and run according to the architectural guidelines therein. Mr. Vance reviewed the slides to show the Commission the cohesion of the design. MSC: Liuag/Nava Vote: 4-0-1-1 Anaya absent; Calvo abstained ** Item 4 taken out of order 3.PUBLIC HEARING MPA17-0001 - ADOPTION OF AN ORDINANCE AMENDING CHAPTER 19.14 OF THE CHULA VISTA MUNICIPAL CODE (CVMC) BY ADDING A NEW SECTION CREATING AN INITIATION PROCESS FOR AMENDMENTS TO THE GENERAL PLAN, SECTIONAL PLANNING AREA PLANS, GENERAL DEVELOPMENT PLANS, SPECIFIC PLANS, PRECISE PLANS (LAND USE PLANS) AND FOR REZONING Staff Recommendation: That the Planning Commission adopt Resolution MPA17-0001 recommending City Council approval of the proposed Ordinance. Brought to the Commission by Kelly Broughton, Director of Development Services 2017-05-23 Agenda Packet Page 97 Planning Commission Minutes March 22, 2017 P a g e | 5 At a previous meeting there had been discussion regarding the revision of several City Ordinances and the desire for the Commission to be kept informed on the progress of those items. City Council has directed Director Broughton to bring this forward based on matters that had come before the Commission and also several applicants that had approached the City on projects that would require changes to large planning documents. The discussions that occurred were around finding a way to get some earlier input before the applicants spent a lot of time and money without having any understanding of what issues were before them. This Ordinance will create a formal process whereby an initiation can be requested by an applicant, not require them to go through extensive technical studies and get an idea from the City Council whether they should move forward. It does not commit to a decision on a matter, but it does give Council a vehicle to talk about their concerns and perhaps hear from the public who may also have concerns prior to the time the applicant prepares all the technical studies and materials required. COMMISSIONER QUESTIONS Q. Would public notification be required? A. It would come to the City Council as a Public Hearing and it would require a Notice of Application as would any regular project. There was Commission discussion about the process and concerns were voiced. 1) The project would go to the City Council for an opinion without any technical studies. 2) If trying to consolidate costs, this seems counterproductive in adding another process. 3) Concern that the City Council does not have the expertise that would be represented by the Planning Commission and if you bypass the Planning Commission, you would bypass the concerns they have with a project due to their experience and knowledge of the technicalities. Examples of the procedure being beneficial would be: 1) Urban Core Specific Plan zone change – consistent with land use, but density was questionable. In this case it gave the applicant information as to whether there were concerns from the Council or public before they did the technical studies. This may allow some issues that could be brought to light to slide through. 2) General Plan rezone to change from industrial to residential; the General Plan had identified the zone as residential, but the zoning had not been changed when the update came forward. This process could save the applicant time and money if they knew the concerns of the Council and what problems they would be up against. The only other vehicle to get this kind of input is to go to Councilmembers individually where the City would like that conversation to be transparent and out in the public. There was further discussion on the pros and cons of a new method to allow applicants voluntarily get a feel for whether a project would have insurmountable problems and/or 2017-05-23 Agenda Packet Page 98 Planning Commission Minutes March 22, 2017 P a g e | 6 challenges or whether it was worth bringing it forward. A concern of some of the Planning Commission is that the applicant should have the option of starting the initiation process with either the Planning Commission or City Council – or go before both. A Commissioner voiced a concern that, while the intention is well meant, it seems to go against the consolidating process that was put in to effect a few years ago. MSC: Motion by Gutierrez to recommend the process to the City Council with a change to the Ordinance to say City Council and/or Planning Commission with a 1-year sunset review. Seconded by Zaker Vote: 4-1-1 (Calvo nay; Anaya absent) OTHER BUSINESS 5.DIRECTOR’S COMMENTS There were none 6. COMMISSIONERS’/BOARD MEMBERS’ COMMENTS Calvo: Can you provide an update on applications for the vacant seat? Broughton: The closing date has been extended as there were not enough applicants. Gutierrez: Can you provide an overview/update of what other Ordinances are being looked at? Broughton: We are starting the Oversight Committee review of the Ordinances and believe they are starting with Food Truck Ordinance, changes to the Second Accessory Dwelling Unit regulations, the Fair Housing Regulations being regulated by the State, and the Appeals process being consistent across all of the appeals bodies. ADJOURNMENT at 7:25 p.m. to the regular meeting on April 12, 2017 at 6:00 p.m. in the Council Chambers at 276 Fourth Avenue in Chula Vista, California. 2017-05-23 Agenda Packet Page 99 City of Chula Vista Staff Report File#:17-0224, Item#: 4. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 2.36, “HUMAN RELATIONS COMMISSION” (SECOND READING AND ADOPTION) RECOMMENDED ACTION Council adopt the ordinance. SUMMARY On April 25, 2017, the City Council directed staff to return with an ordinance updating Chapter 2.36 regulating the Human Relations Commission to broaden and redefine its scope and to update outdated sections. ENVIRONMENTAL REVIEW Environmental Notice The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15606(c) (3) no environmental review is required. Environmental Determination The Director of Development Services 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 of the State CEQA Guidelines because it will not result in a 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 environmental review is required. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION Communities in America are made up of people from varied backgrounds. Our community represents many different races, cultures, faiths, experiences and traditions. We have different interests, fears and ways of doing things. Some are newcomers, immigrants, and refugees. Others are from families, several generations in the United States. We have different preferences in what we like and different arrangements in our living situations, and in our domestic and social relationships. The differences sometimes enrich us and at other times is a source of conflict. As a nation, unique in being formed by people from many different countries, we have experimented and fought to resolve our differences and make our diversity work. We have a history that houses many examples of difficult challenges regarding differences of race, gender, sexual orientation, disabilities, language and other important aspects of our diversity. These have often been City of Chula Vista Printed on 5/18/2017Page 1 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 100 File#:17-0224, Item#: 4. disabilities, language and other important aspects of our diversity. These have often been complicated and highly charged struggles. We believe that all people, including immigrants, are valued contributors who are vital to the success of our communities and shared future. Inclusive communities become more prosperous by making everyone feel like they belong. For many people of different backgrounds and interests to get along and respect one another, it is useful for the City of Chula Vista to set up places and programs that have the responsibility to help people develop better understanding of each other and to solve differences that might arise. Updating and reactivating the Human Relations Commission will help identify intergroup relations, promote work that brings people together, safeguard equal opportunity for all and identify resources available including training, information sharing, community education, mediation, cultural literacy, hate crime response and conflict management to the community and will improve our community’s prospects for harmony. 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 Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not 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. The Human Relations Commission supports the Healthy Community goal, Strong and Secure Neighborhoods and a Connected Community as it seeks to promote ways in which the community gets along and safeguards equal opportunity for everyone. Additionally it uses tools of fact finding, training, information sharing, community education, mediation, cultural literacy, hate crime response and conflict management to help people develop better understanding of each other, solve differences and bring people together to improve our community. CURRENT YEAR FISCAL IMPACT None ONGOING FISCAL IMPACT None ATTACHMENTS Chula Vista Municipal Code Chapter 2.36 with proposed changes Ordinance Staff Contact: Kelley Bacon, Deputy City Manager City of Chula Vista Printed on 5/18/2017Page 2 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 101 File#:17-0224, Item#: 4. City of Chula Vista Printed on 5/18/2017Page 3 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 102 SECOND READING AND ADOPTION C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@48051559\@BCL@48051559.doc ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 2.36, “HUMAN RELATIONS COMMISSION” WHEREAS, it is the desire of the City Council to revise and broaden the Human Relations Commission’s duties and functions in order to better serve the community and protect the rights of various groups; and WHEREAS, on April 25, 2017, the City Council directed staff to bring forward an ordinance amending Chapter 2.36 regulating the Human Relations Commission to redefine the Commission’s purpose and intent and update any outdated sections. NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. MUNICIPAL CODE AMENDMENT Chula Vista Municipal Code Chapter 2.36 is hereby amended to read: Chapter 2.36 HUMAN RELATIONS COMMISSION* Sections: 2.36.010 Creation. 2.36.020 Purpose and intent. 2.36.030 Functions and duties. 2.36.040 Membership. 2.36.050 Funding. * For statutory authority for cities to act on behalf of interracial, interethnic and interreligious peace, see Gov. Code § 50261, et seq. 2.36.010 Creation. There is created a Human Relations Commission. The provisions of Article VI of the City Charter, Chapter 2.25 CVMC and this chapter shall govern this Commission. 2.36.020 Purpose and intent. A. It is the purpose and intent of the City Council to redefine and broaden the duties and functions of the Human Relations Commission as an advisory body, to make recommendations and offer advice to the Mayor, City Council and the City Manager on the rights of every inhabitant of the City of Chula Vista and in the improvement and effectiveness of the interrelationships between the various groups based on race, religion, color, ancestry, socioeconomic, age, sex (including gender identity, gender expression, transgender, pregnancy and breastfeeding), sexual orientation, place of birth, citizenship/immigration status, marital status, military service, disability, medical condition, genetic characteristics or information, or any other characteristic protected by federal, state, or local laws of citizens forming the social 2017-05-23 Agenda Packet Page 103 Ordinance Page 2 body of the City and to advise the City on how it may best proceed in the realization of its stated goals to support healthy community, strong and secure neighborhoods and a connected community as it seeks to promote ways in which the community welcomes and embraces its diversity and safeguards equal opportunity for everyone and to accomplish, among other things: 1. The development of a mutual understanding and respect among all such groups in the City and to help eliminate prejudice and discrimination; 2. The establishment and maintenance of contacts with groups in the community which are concerned with protection of civil liberties of all people, resolution of conflict, and interracial and intercultural understanding, and to report to the Mayor, City Council and City Manager regarding the activities of these groups; 3. The promotion of new and improved programs of services to all local citizens in cooperation with peer boards and commissions as well as the City Manager to increase intergroup relations and harmony. 4. The encouragement of citizen participation in local government by providing a forum for discussion as a means of resolving community relationship problems; 5. The protection and strengthening of the rights of all groups to ensure the enjoyment of their constitutional privileges and the elimination thereby of prejudice, discrimination or bigotry in this community; 6. The advancement of programs to assist senior citizens in the realization and satisfaction of their needs and other social concerns; 7. The encouragement of policies and programs to fully integrate persons with disabilities into the mainstream of community life in the City; 8. The encouragement of the Mayor, City Council, City Manager and all officers, agencies, boards, departments, and employees of the City of Chula Vista take steps to enhance peace and good order, and provide equal opportunity for and good will toward all people; 9. Prepare a written report of its activities to the Mayor, City Council, and City Manager annually to include summaries of recommendation for development of policies, procedures and legislation deemed to be necessary. B. It is the intent of the City Council to create healthy, enlightened attitudes, policies and practices by establishing this Commission as an official body, not as an enforcement or audit agency, but as a commission which will conduct careful surveys, advise intelligently, and use the tools of education and motivation to the realization of the objectives stated herein, which are the fulfillment of democracy’s promises and realization of constitutional guarantees. 2.36.030 Functions and duties. In cooperation with other relevant boards and commissions and the Chief’s Community Advisory Board, the Human Relations Commission shall perform the following duties and functions: 2017-05-23 Agenda Packet Page 104 Ordinance Page 3 A. Foster mutual understanding, respect and good will among all groups identified in 2.36.020 (A). B. The first duty of the Commission shall be to assist the City, by completing all required steps, to become a Certified Welcoming City. C. Enlist the cooperation of the various groups, fraternal and benevolent associations and other groups in Chula Vista in programs and campaigns devoted to eliminating group prejudice, intolerance, bigotry and discrimination; D. Study the problems in the event of civil unrest and examine the causes; E. Study, review, analyze and report to the Mayor, City Council and the City Manager the studies of state and federal agencies, and legislative enactments of state and federal governments, including but not limited to the several civil rights acts of the United States government and the state; F. Work together with City, state and federal agencies in developing programs and events showing the contributions of the various groups to the culture and traditions of the City, state and nation; G. Promote the establishment of local community organizations in building and strengthening relationships with community groups and nonprofits; H. Work with relevant boards and commissions, including the Chief’s Community Advisory Board, as needed to explore ways to improve municipal services and community relations within the scope of the commission’s purpose as stated in 2.36.020(A); I. Advise the City Council and the City Manager of policies and programs of a formal and informal nature that will aid in eliminating all types of discrimination based on race, religion, color, creed, national origin, ancestry, age gender, sexual orientation, disability, medical condition, place of birth, citizenship/immigration status, marital status, or military service, and secure the furnishing of equal services to all residents and maintain the quality of opportunity for employment and advancement in the City government; The Commission shall be advisory in its function, and shall have no police or enforcement powers. It shall issue no reports or recommendations except through the City Council and the City Manager. 2.36.040 Membership. A. The Human Relations Commission shall consist of eleven members, to be appointed in accordance with Article VI of the City Charter, Chapter 2.25 CVMC, and this chapter. B. The members shall be: (i) representative of the diversity of the City; (ii) specifically chosen to reflect the interests and concern with protection of civil liberties of all people which make up the City’s residents; (iii) committed to fostering better human relations in the City of Chula Vista; and (iv) associated with the business and/or civic activities of the City. 2.36.050 Funding. 2017-05-23 Agenda Packet Page 105 Ordinance Page 4 In the event that private funds or funds from other governmental agencies are made available for special projects, surveys, educational programs or general program support, the City Manager is authorized, upon recommendation of the Commission and approval of the Council, to enter into appropriate contracts for the utilization of such funds in furtherance of the purposes and intent of, and the duties and functions of, the Commission. Section II. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section III. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by _____________________________________ ____________________________________ Kelley Bacon Glen R. Googins Deputy City Manager City Attorney 2017-05-23 Agenda Packet Page 106 Chapter 2.36 HUMAN RELATIONS COMMISSION* Sections: 2.36.010 Creation. 2.36.020 Purpose and intent. 2.36.030 Functions and duties. 2.36.040 Membership. 2.36.050 Funding. * For statutory authority for cities to act on behalf of interracial, interethnic and interreligious peace, see Gov. Code § 50261, et seq. 2.36.010 Creation. There is created a Human Relations Commission. The provisions of Article VI of the City Charter, Chapter 2.25 CVMC and this chapter shall govern this Commission. 2.36.020 Purpose and intent. A. It is the purpose and intent of the City Council to redefine and broaden the duties and functions of the Human Relations Commission as an advisory body, to make recommendations and offer advice to the Mayor, City Council and the City Manager on the rights of every inhabitant of the City of Chula Vista and in the improvement and effectiveness of the interrelationships between the various racial, religious, ethnicgroups based on race, religion, color, ancestry, socioeconomic, age and disabled groups, sex (including gender identity, gender expression, transgender, pregnancy and breastfeeding), sexual orientation, place of birth, citizenship/immigration status, marital status, military service, disability, medical condition, genetic characteristics or information, or any other characteristic protected by federal, state, or local laws of citizens forming the social body of the City and to advise the City on how it may best proceed in the realization of its stated goal to provide both physical and social answers to the human care needs of said groupssupport healthy community, strong and secure neighborhoods and a connected community as it seeks to promote ways in which the community gets along and safeguards equal opportunity for everyone and to accomplish, among other things: 1. The development of a mutual understanding and respect among all such groups in the City and to help eliminate prejudice and discrimination; 2. The establishment and maintenance of contacts with groups in the community which are concerned with protection of civil liberties of all people, resolution of conflict, and interracial and intercultural understanding, and to report to the Mayor, City Council and City Manager regarding the activities of these groups; 3. The promotion of new and improved programs of services to all local citizens in cooperation with peer boards and commissions as well as the City Manager; to increase intergroup relations and harmony. 4. The encouragement of citizen participation in local government by providing a forum for discussion so as to avoid recourse to conflict and disorder as a means of resolving community relationship problems; 2017-05-23 Agenda Packet Page 107 5. The protection and strengthening of the rights of various racial, religious, ethnic, socioeconomic, age and disabledall groups of citizens of Chula Vista to ensure fullthe enjoyment of their constitutional privileges without regard to race, color, creed, national origin, sex or age and the elimination thereby of prejudice, discrimination or bigotry in this community; 6. The advancement of programs to assist senior citizens in the realization and satisfaction of their needs for adequate and decent housing, food, clothing and other social concerns; 7. The strengthening and improvement of programs to stimulate housing for low and moderate income families and individuals; 7. The encouragement of policies and programs to fully integrate disabled persons into the mainstream of community life in the City; B. It is also intended that 8. The encouragement of the Human Relations Commission will advise the City Mayor, City Council on matters involving, City Manager and all officers, agencies, boards, departments, and employees of the City of Chula Vista public transportation services, relatingtake steps to operationalenhance peace and good order, and provide equal opportunity for and good will toward all people; 9. Prepare a written report of its activities and especially as to how well these services serve the needs of Chula Vista citizensMayor, City Council, and City Manager annually to include summaries of recommendation for development of policies, procedures and legislation deemed to be necessary. C. B. It is the intent of the City Council to create healthy, enlightened attitudes, policies and practices by establishing this Commission as an official body, not primarily as an enforcement or audit agency, but as a commission which will conduct careful surveys, advise intelligently, and use the tools of education and motivation to the realization of the objectives stated herein, which are the fulfillment of democracy’s promises and realization of constitutional guarantees. 2.36.030 Functions and duties. In cooperation with other relevant boards and commissions and the Chief’s Community Advisory Board, the Human Relations Commission shall perform the following duties and functions: A. Foster mutual understanding, respect and good will among all racial, religious, national, ethnic, socioeconomic, age, sex and disabled groups identified in 2.36.020 (A). A.B. The first duty of the Commission shall be to assist the City by completing all required steps, to become a Certified Welcoming City. B.C. Enlist the cooperation of the various racial, religious, ethnic, socioeconomic, age, sex and disabled groups, fraternal and benevolent associations and other groups in Chula Vista in programs and campaigns devoted to eliminating group prejudice, intolerance, bigotry and discrimination; C.D. Study the problems in the event of prejudice, intolerance, bigotry, discriminationcivil unrest and disorder occasioned thereby in all or any fields of human relationshipexamine the causes; 2017-05-23 Agenda Packet Page 108 D.E. Study, review, analyze and report to the Mayor, City Council and the City Manager the studies of state and federal agencies, and legislative enactments of state and federal governments, including but not limited to the several civil rights acts of the United States government and the state; E. F. Work together with City, state and federal agencies in developing programs and events showing the contributions of the various racial, religious, ethnic, age, sex and disabled groups to the culture and traditions of the City, state and nation; F. G. Promote the establishment of local community organizations in such neighborhoods as it may be necessarybuilding and desirable to carry out programs to lessen tensions or improve group relations in the strengthening relationships with community groups and nonprofits; H. G. Work with the severalrelevant boards and commissions and departments of the City toward the improvement of , including the Chief’s Community Advisory Board, as needed to explore ways to improve municipal services and community relations, including assistance in the development of housing programs for low and moderate income families and individuals, the full range of programs providing assistance to senior citizens and disabled persons, and actions to eliminate age and sex discrimination; H. Initiate and investigate complaints and initiate its own investigation, after consultation with the City Manager, relative to the actions of City officials or City agencies, except that instances of discrimination within the jurisdiction of any federal or state commission or agency shall be referred to such commission or agency;scope of the commission’s purpose as stated in 2.36.020(A); I. Hold hearings and take testimony of any person under oath or otherwise, relating to any matter under investigation or in question before the Commission; I. J. Advise the City Council and the City Manager of policies and programs of a formal and informal nature that will aid in eliminating all types of discrimination based on race, religion, color, creed, national origin, ancestry, age gender, sexual orientation, disability, medical condition, place of birth, citizenship/immigration status, marital status, or sexmilitary service, and secure the furnishing of equal services to all residents and maintain the quality of opportunity for employment and advancement in the City government; K. Consider Chula Vista public transportation services, including, but not limited to, route structures; fares; vehicles; interface with all other forms of transit; and bench, bus stop and bus shelter locations; L. Assess Chula Vista public transportation services from the standpoint of Chula Vista residents and keep the City Council informed of the adequacy of service; M. Consider and recommend to the City Council the levels of public transportation services in Chula Vista; N. The Commission shall be advisory in its function, and shall have no police or enforcement powers. It shall issue no reports or recommendations except through the City Council and the City Manager. 2.36.040 Membership. 2017-05-23 Agenda Packet Page 109 A. The Human Relations Commission shall consist of seveneleven members, to be appointed in accordance with Article VI of the City Charter, Chapter 2.25 CVMC, and this chapter. B. The members shall be: (i) representative of the total social spectrumdiversity of the City,; (ii) specifically chosen to reflect the interests and desiresconcern with protection of civil liberties of all people which make up the various racial, religious, ethnic, socioeconomic, ageCity’s residents; (iii) committed to fostering better human relations in the City of Chula Vista; and disabled groups, as well as a member or members having a close association(iv) associated with the business and/or civic activities of the City. 2.36.050 Funding. In the event that private funds or funds from other governmental agencies are made available for special projects, surveys, educational programs or general program support, the City Manager is authorized, upon recommendation of the Commission and approval of the Council, to enter into appropriate contracts for the utilization of such funds in furtherance of the purposes and intent of, and the duties and functions of, the Commission. 2017-05-23 Agenda Packet Page 110 City of Chula Vista Staff Report File#:17-0079, Item#: 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING COUNCIL COMMITMENT AND SUPPORT FOR THE FIRE DEPARTMENT APPLICATION FOR THE 2016 DEPARTMENT OF HOMELAND SECURITY (DHS), FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) STAFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE (SAFER) GRANT TO HIRE 12 FIREFIGHTERS RECOMMENDED ACTION Council adopt the resolution. SUMMARY The Fire Department is requesting the City Council’s commitment to and support of its application for a federal grant to hire 12 firefighters. The Staffing for Adequate Fire and Emergency Response grant (SAFER) was created to provide funding directly to fire departments to increase or maintain the number of trained, "front line" firefighters available in their communities. The goal of the SAFER grant is to enhance the local fire department’s abilities to comply with staffing, response and operational standards established by National Fire Protection Association (NFPA) 1710. ENVIRONMENTAL REVIEW Environmental Notice The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Determination The Director of Development Services 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 of the State CEQA Guidelines because it will not result in a 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 environmental review is required. BOARD/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The Staffing for Adequate Fire and Emergency Response grants (SAFER) was created to provide funding directly to fire departments to increase or maintain the number of trained, "front line" firefighters available in their communities. The goal of SAFER grant is to enhance the local fire department’s abilities to comply with staffing, response and operational standards established by City of Chula Vista Printed on 5/18/2017Page 1 of 4 powered by Legistar™2017-05-23 Agenda Packet Page 111 File#:17-0079, Item#: 5. department’s abilities to comply with staffing, response and operational standards established by NFPA Standard 1710. SAFER is a cost sharing grant over a three-year performance period. Eligible costs within the grant include salary and benefits beginning from the date of hire including fire academy training. SAFER Cost Sharing YEAR #FEDERAL SHARE CITY SHARE Year 1 75%25% Year 2 75%25% Year 3 35%65% Total Cost - Years 1 through 3 (if awarded SAFER grant to hire 12 firefighters) Year #FEDERAL SHARE CITY SHARE Year 1 $918,027 $306,009 Year 2 $918,027 $306,009 Year 3 $428,412 $795,624 Total $2,264,466*$1,407,642* *This table does not reflect Academy training cost beyond new hire salary & benefits, contractual or step salary increases, direct or indirect benefit increases due to the restrictions of the grant application process; however, these fiscal impacts are captured in the ongoing fiscal impact portion of this report below. The SAFER grant application was submitted by the Fire Department on February 10, 2017. Typically, grant awards occur in several weekly allocation rounds that begin in mid-July and run through September. If awarded and accepted, the SAFER grant Program allows the recruitment and hiring of firefighters to occur up to six months prior to the beginning of the three-year performance period. To receive a SAFER grant award, grantees are required to maintain staffing levels and incur no lay-offs during the grant performance period. In the event of an inability to maintain the ongoing costs during or after the grant performance period, the Fire Department will avoid layoffs of these proposed 12 new firefighters by placing the staffing at the Millenia Fire Station or the Bayfront Fire Station Station to fulfill these obligations if necessary. To ensure there is a clear understanding of the long-term obligations of a SAFER grant and that if awarded, the City is committed to fulfilling those requirements upon acceptance of the award; staff is requesting City Council establish its commitment through Council Resolution. This commitment does not obligate the City to accept a grant award offer. However, commitment via Council Resolution is required by DHS as part of the grant application and acceptance process. Upon award of the grant, the Fire Department will return to Council seeking formal award acceptance and approval. Anticipated Department-wide Performance Improvements City of Chula Vista Printed on 5/18/2017Page 2 of 4 powered by Legistar™2017-05-23 Agenda Packet Page 112 File#:17-0079, Item#: 5. METRIC WITHOUT SAFER GRANT WITH SAFER GRANT Additional firefighters 42 54 Engine companies with 4 firefighters daily 0%50% Initial Attack Force -4 firefighters to arrive at fire within 6 minutes 20 seconds (380 seconds) 47%58% Effective Firefighting Force-14 firefighters to arrive at fire within 10 minutes 20 seconds (620 seconds) 35%58% 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 Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). 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. Hiring 12 firefighters will improve firefighting performance metrics and move the Fire Department and the City towards improved operational delivery by placing four firefighters on-scene of a fire within 6 minutes 20 seconds and 14 firefighters within 10 minutes 20 seconds. These metrics are expected to increase efficiency by 11% and 23% respectively. This allows the Fire Department to move closer to meeting response standards and improve current service delivery to the citizens of Chula Vista. Hiring 12 firefighters provides a safer and healthier work place for firefighters. This additional daily staffing allows for optimal distribution of work and increased performance, translating to increased effectiveness and efficiency. This in turn provides a healthier community for the citizens of Chula Vista and further develops strong and secure neighborhoods. CURRENT YEAR FISCAL IMPACT There is no fiscal impact in FY2016-17 as a result of this resolution. This resolution is requesting formal documentation from the City Council to establish commitment and support of this grant application. ONGOING FISCAL IMPACT In the event the City is awarded and accepts this proposed 2016 SAFER grant, the ongoing fiscal impacts are shown in the table below. City of Chula Vista Printed on 5/18/2017Page 3 of 4 powered by Legistar™2017-05-23 Agenda Packet Page 113 File#:17-0079, Item#: 5. Item Year 1 Year 2 Year 3 Total Ongoing Annual Impact Firefighter Salaries (12) $775,791 $830,873 $872,416 $2,479,080 $916,037 Firefighter Benefits (12) $577,671 $656,585 $732,740 $1,966,995 $769,377 Constant staffing, Hard Holiday, FLSA,Training $456,144 $488,530 $512,957 $1,457,631 $538,605 Fire Academy Training $540,498 $0 $0 $540,498 $0 TOTAL COST $2,350,104 $1,975,988 $2,118,113 $6,444,204 $2,224,018 SAFER Grant Revenue ($918,027)($918,027)($428,412)($2,264,466)$0 Net Fiscal Impact $1,432,077 $1,057,961 $1,689,701 $4,179,738 $2,224,018 Awards from this grant program are expected to take place between July and September of 2017. If awarded and then accepted by the City Council, the fiscal impact will be in FY2018. Currently a funding source has not been identified for FY2018 and the City Council will need to consider recommended solutions for this impact at a future date. ATTACHMENTS Not applicable. Staff Contact: Harry Muns City of Chula Vista Printed on 5/18/2017Page 4 of 4 powered by Legistar™2017-05-23 Agenda Packet Page 114 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ESTABLISHING COUNCIL COMMITMENT AND SUPPORT FOR THE FIRE DEPARTMENT APPLICATION FOR THE 2016 DEPARTMENT OF HOMELAND SECURITY (DHS), FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) STAFFING FOR ADEQUATE FIRE AND EMERGENCY RESPONSE (SAFER) GRANT TO HIRE 12 FIREFIGHTERS WHEREAS, the City of Chula Vista Fire Department delivers Fire, Rescue and Emergency Medical Services to Chula Vista residents, and visitors every day; and WHEREAS, the City of Chula Vista Fire Department does not meet Growth Management Oversight Commission response standards, or National Fire Protection Association (NFPA) 1710 staffing and response standards; and WHEREAS, the Staffing for Adequate Fire and Emergency Response (SAFER) Federal Grant was created to fund fire department staffing to increase or maintain the number of trained, "front line" firefighters available in communities; and WHEREAS, the goal of the SAFER grant is to enhance the local fire department’s abilities to comply with staffing, response and operational standards established by NFPA 1710; and WHEREAS, successful acquisition of the SAFER grant will provide funding to hire and train 12 new firefighters to staff four engine companies with four firefighters; and WHEREAS, 12 new firefighters department wide, will increase NFPA 1710 compliance by 11% with the arrival of four firefighters arriving at a fire within 380 seconds; and by 23% with the arrival of 14 firefighters arriving at a fire within 620 seconds; and WHEREAS, the SAFER grant is a cost sharing grant that covers personnel and direct benefits with a three-year performance period; with a Federal share of $2,264,466 and a City share of $1,407,642; and WHERAS, the total City fiscal impact within the three-year grant performance period is $4,179,738 to hire, train, and staff four engine companies with four firefighters; and WHEREAS, the ongoing fiscal impact to the City beyond the grant performance period is $2,224,018 per year. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that Council commitment and support is established for application for the 2016 Department of 2017-05-23 Agenda Packet Page 115 Homeland Security (DHS), Federal Emergency Management Agency (FEMA) Staffing for Adequate Fire and Emergency Response (SAFER) grant to hire 12 firefighters. Presented by Approved as to form by Jim Geering Glen R. Googins Fire Chief City Attorney 2017-05-23 Agenda Packet Page 116 City of Chula Vista Staff Report File#:17-0190, Item#: 6. A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACKNOWLEDGING RECEIPT OF, AND AMENDING, COUNCIL POLICY NO. 220-01, THE CITY OF CHULA VISTA INVESTMENT POLICY AND GUIDELINES; AND DELEGATING INVESTMENT ACTIVITY AUTHORITY TO THE DIRECTOR OF FINANCE/TREASURER B. INVESTMENT REPORT FOR THE QUARTER ENDED MARCH 31, 2017 RECOMMENDED ACTION Council adopt the resolution and accept the report. SUMMARY Per California Government Code Section 53607, on an annual basis the City Council may delegate to the City Treasurer the authority to conduct the investment activities of the City. And per Government Code Section 53646, the City Treasurer may annually present the City’s Investment Policy to the City Council to reaffirm or make any changes to the existing policy. The Investment Policy provides guidelines for the investment of idle funds and affords the City various investment opportunities, as long as the investment is deemed prudent and is allowable under Government Code Section 53600, et seq. The City received the Certificate of Excellence Award from the Association of Public Treasurers United States and Canada (APT-US&C) in August 2007 for its Investment Policy, and most recently, the Policy was reviewed and adopted by City Council on March 15, 2016. At this time, staff is recommending minor changes to the policy to reflect the recent revision of California Government Code Section 53601 to clarify that the Code’s rating requirements specify the minimum credit rating category required for investment types at purchase. Transmitted herewith is the City’s investment report for the quarter ended March 31, 2017. To meet the reporting requirements set forth in the California Government Code Sections 53600 et seq. and the City of Chula Vista Investment Policy and Guidelines, a separate report was distributed to the City Council in April. 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” in accordance with Section 15378(b)(5) of the State CEQA Guidelines because it involves only amendment of a Council Policy and Guidelines regarding the City’s Investment Policy, delegation of investment activity authority to the Director of Finance/Treasurer and acceptance of the Quarterly Investment Report; therefore it 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. City of Chula Vista Printed on 5/18/2017Page 1 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 117 File#:17-0190, Item#: 6. Environmental Notice The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Determination BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION Investment Policy The City's Investment Policy and Guidelines was last amended on March 15, 2016 by Resolution 2016-046 and was intended to provide direction for the prudent investment of temporarily idle cash, and for maximizing the efficiency of the cash management process. The stated goal is to enhance the economic condition of the City while ensuring the safety of funds invested. The policy includes a list of specific investment instruments available under the relevant California Government Code sections, 53600 et seq. and 53635. Each investment transaction is made in the context of first ensuring the "safety" of principal, second, investing only for that timeframe that the cash is not needed for operational purposes ("liquidity"), and last seeking the highest return possible ("yield") provided that the first two factors are met. Per section 18.0 of the Investment Policy, each fiscal year the Finance Director/Treasurer shall provide a copy of the Policy for adoption by the City Council. At this time, staff is recommending minor changes to reflect a revision of California Government Code Section 53601 to clarify that the Code’s rating requirements specify the minimum credit rating category required for investment types at purchase. Quarterly Investment Report The total cash and investment portfolio held by the City as of March 31, 2017 was $236,485,733 and total cash and investments held by the trustees was $82,258,486. The cash and investments held by the City are composed of the following components: Managed Investment Portfolio ($149,905,351), State of CA Local Agency Investment Fund ($1,649,727), County of San Diego Pooled Investment Fund ($69,901,317), Cash/Time Deposits ($12,839,405), unrealized gain ($1,504,228), and accrued interest on investment ($685,705). Cash and investments held by the City and the trustees continue to be invested in accordance with the Government Code and the Council Investment Policy as adopted by Resolution 2016-046 on March 15, 2016. During the quarter, six investments matured totaling $15,466,000 and one investment for $3,000,000 was sold prior to its maturity date. Six purchases were made to replace those investments and invest idle cash. Purchased investments include: three corporate notes issued by Microsoft ($2,000,000), Boeing Company ($1,500,000), and Comcast ($1,500,000); two commercial paper issued by Mitsubishi ($3,000,000) and Credit Agricole ($3,000,000); and one certificate of deposit ($3,000,000). Public Financial Management (PFM), the City's investment advisor, continues to monitor the portfolio and will make recommendations as financial and economic conditions warrant. There is no further City of Chula Vista Printed on 5/18/2017Page 2 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 118 File#:17-0190, Item#: 6. activity to report on other than routine investments by the City's fiscal agents. In March, the Federal Open Market Committee (FOMC) raised the Fed Funds target range by 0.25% to a range of 0.75% to 1.00%. Two-year Treasuries yielding 1.19% at the beginning of the quarter ended higher at the end of the quarter at 1.26%. As of March 31, 2017, the Yield to Maturity at Cost on the Managed Investment Portfolio was 1.43%, which was an increase of five basis points from the previous quarter. At the end of this quarter, the weighted average maturity of the Managed Investment Portfolio was 1.91 years which is a slight decrease from 1.94 the previous quarter and is within the Council Policy. DECISION-MAKER CONFLICT Staff has determined that the action contemplated by this item is ministerial in nature and does not require the City Council members to make or participate in making a governmental decision, pursuant to California Code of Regulations section 18702.4(a). Consequently, this item does not present a conflict under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, nor has staff 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 investment portfolio supports the Operational Excellence goal as it seeks to maintain the safety and liquidity of the City’s cash while contributing investment earnings to the bottom line. CURRENT YEAR FISCAL IMPACT Considering the projected timing of cash receipts and disbursements and the structure of the Pooled Investment Portfolio, the City should be able to comfortably meet overall cash flow needs over the next six months. There is no direct fiscal impact by this action. ONGOING FISCAL IMPACT There is no ongoing fiscal impact by this action. ATTACHMENTS 1. Summary of Cash and Investments as of March 31, 2017 2. PFM Investment Report for the Quarter Ended March 31, 2017 3. Council Policy 220-01 Investment Policy and Guidelines Staff Contact: David Bilby, Director of Finance/Treasurer, Finance Department Lisa Partee, Fiscal Management Analyst, Finance Department City of Chula Vista Printed on 5/18/2017Page 3 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 119 RESOLUTION NO. 2017-__________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACKNOWLEDGING RECEIPT OF, AND AMENDING, COUNCIL POLICY 220-01, THE CITY OF CHULA VISTA INVESTMENT POLICY AND GUIDELINES; AND DELEGATING INVESTMENT ACTIVITY AUTHORITY TO THE DIRECTOR OF FINANCE/TREASURER WHEREAS, the City of Chula Vista’s “Investment Policy and Guidelines,” adopted on March 15, 2016 by Resolution No. 2016-046 (the Policy), is intended to provide direction for the prudent investment of temporarily idle cash and to maximize the efficiency of the cash management process; and WHEREAS, the stated goal of the Policy is to enhance the economic condition of the City while ensuring the safety of funds invested; and WHEREAS, the Policy includes a list of specific investment instruments available pursuant to California Government Code sections 53600, et. seq. and 53635; and WHEREAS, each investment transaction is made in the context of first ensuring the "safety" of principal, second, investing only for that timeframe that the cash is not needed for operational purposes ("liquidity"), and last seeking the highest return possible ("yield") provided that the first two factors are met; and WHEREAS, in accordance with Section 18.0 of the Policy, staff has provided the City Council with a copy of the City’s Investment Policy; and WHEREAS, staff recommends that the Policy be amended to specify the minimum credit rating category by investment type required at purchase, pursuant to Government Code section 53601, as amended effective January 1, 2017; and WHEREAS, staff recommends that Section 9.0 (Authorized & Suitable Investments) of the Policy be amended to reflect the revision in the reporting requirement; and WHEREAS, City staff recommends that the Policy be amended to reflect these changes; and WHEREAS, pursuant to California Government Code section 53607, the City Council may delegate the authority to conduct investment activities of the City to the Finance Director/Treasurer on an annual basis. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that: 2017-05-23 Agenda Packet Page 120 Resolution No. __________ Page 2 It acknowledges receipt of council policy 220-01, the City of Chula Vista investment policy and guidelines Amends the existing policy as reflected in Exhibit 1; and Delegates the authority to conduct and supervise the investment activities of the City to the Director of Finance/Treasurer. Presented by Approved as to form by _____________________________________________ David Bilby Glen R. Googins Director of Finance/Treasurer City Attorney 2017-05-23 Agenda Packet Page 121 % of Investment Type Par Value Market Value Book Value Portfolio Managed Investment Portfolio BNY Custodial Cash Account $5,508,739 $5,508,739 $5,508,739 1.73% U.S. Treasury Bond/Note 58,930,000 58,810,000 58,957,668 18.50% Federal Agency Collateralized Mtg Ob.1,355,962 1,355,826 1,369,540 0.43% Federal Agency Bond/Note 9,615,000 9,599,193 9,615,000 3.02% Corporate Notes 39,051,000 39,515,497 39,589,591 12.42% Commercial Paper 9,000,000 8,965,992 8,933,458 2.80% Certificates of Deposit 20,400,000 20,426,619 20,400,435 6.40% Asset Back Securities/Collateralized Mtg Ob. 5,530,000 5,511,965 5,530,919 1.74% Managed Investment Portfolio Subtotal 149,390,701 149,693,831 149,905,351 47.03% Pooled Investments State of CA Local Agency Investment Fund 1,649,727 1,648,368 1,649,727 0.52% County of San Diego Pooled Investment Fund 69,901,317 69,901,317 69,901,317 21.93% Pooled Investments Subtotal 71,551,044 71,549,685 71,551,044 22.45% Cash/Time Deposits 12,839,405 12,839,405 12,839,405 4.03% Unrealized Gain on Fair Market Value 1,504,228 1,504,228 1,504,228 0.47% Accrued Interest 685,705 685,705 685,705 0.22% Total Cash & Investments Held by the City $235,971,083 $236,272,853 $236,485,733 74.19% Held by Bank Trustee/Fiduciary Funds (1) Investment Agreements 0 0 0 0.00% Mutual Funds 31,949,353 31,948,014 31,949,353 10.02% Cash with Fiscal Agents 28,227,841 28,227,841 28,227,841 8.86% Restricted Cash 788,884 788,884 788,884 0.25% U.S. Gov't 21,292,408 21,292,408 21,292,408 6.68% Total Held by Bank Trustee/Fiduciary Funds $82,258,486 $82,257,146 $82,258,486 25.81% Total Portfolio $318,229,568 $318,529,999 $318,744,218 100.00% Notes: 1. Reflects bond proceeds and tax levy revenues held by trustee in accordance with bond covenants. 2. Par value is the principal amount of the investment on maturity. 3. Market values contained herein are received from sources we believe are reliable, however we do not guarantee their accuracy. 4. LAIF market value on the PFM statement does not include the market value factor as included in the market value above. 5. Book value is par value of the security plus or minus any premium or discount and accrued interest included in purchase price. Summary of Cash and Investments as of March 31, 2017 City of Chula Vista 2017-05-23 Agenda Packet Page 122 City of Chula Vista Quarter Ended March 31, 2017 Security Type1 Market Value2 % of Portfolio Policy Limits U.S. Treasuries $58,810,000 27% 100% Federal Agencies $9,599,193 4% 100% Federal Agency CMOs $1,355,826 1% 100% Municipal Obligations $0 0% 100% Commercial Paper $8,965,992 4% 25% Negotiable CDs $20,426,619 9% 30% Corporate Notes $39,515,497 18% 30% Asset-Backed Securities $5,511,965 2% 20% Money Market Fund $5,508,739 2% 20% San Diego County Pool $69,901,317 32% 100% LAIF $1,649,727 1% $65 Million Totals $221,244,874 100% Par Value Amortized Cost 1Q17 Acrual Basis Earnings 524,147.00 Weighted Average Maturity (years)Fiscal Year 2016-17 Initial Earnings Forecast 2,129,482.52 Effective Duration (years)Fiscal Year 2016-17 Current Earnings Forecast 2,168,117.00 Yield to Maturity at Cost Variance to Initial Forecast 38,634.48 Yield to Maturity at Market Notes: 1. End of quarter trade-date market values of portfolio holdings. Percentages may not add to 100% due to rounding. 2. Balances held in LAIF and the San Diego County Investment Pool are not managed by PFM Asset Management LLC. 4. Yields, weighted average maturity, and effective duration exclude balances not managed by PFM Asset Management LLC. 5. Accrual earnings forecast are caluclated on an amortized cost, settle basis. Projected earnings for April 2017 through June 2017 are based on portfolio holdings as of March 31, 2017, $143.9 par. Earnings for January 2017, February 2017, and March 2017 are based on actual accrual basis earnings. As current holdings mature, proceeds are reinvested in a) a maturity that reblances the portfolio near its current duration, 1.82 as of March 31, 2017. b) at a yield based on assumed maturity and US Treasury forward curve, as of April 12, 2017. Projected earnings assume callable securities trading at a premium are called at their next call date and are subsequently reinested at the assumptions noted above. We cannot gaurantee earnings forecasts, which are subject to market fluctuations, changes in cash flows, and reinvestment rates. Past performace in not indicative of future results. 1.45% Summary of Portfolio Characteristics and Key Statistics Sector Distribution Credit Quality (S&P Ratings) Maturity Distribution Key Statistics4 Earnings5 $220,941,745 $221,346,167 1.91 1.77 1.43% 3. Citigroup, Goldman Sachs, and Morgan Stanley Corporate Notes rated BBB+ by S&P and rated A by Fitch. U.S. Treasuries 27% Federal Agencies 4% Federal Agency CMOs 1% Commercial Paper 4%Negotiable CDs 9% Corporate Notes 18% Asset-Backed Securities 2% Money Market Fund 2% San Diego County Pool 32% LAIF 1% AAA 3% AA 36% A 12% BBB3 2% A-1 (Short- term) 12% Money Market Fund 2% AAAf/S1 (San Diego County) 32% Not Rated <1% Not Rated (LAIF) 1% 46% 5% 18% 24% 5% 2% 0% 10% 20% 30% 40% 50% Under 6 Months 6 - 12 Months 1 - 2 Years 2 - 3 Years 3 - 4 Years 4 - 5 YearsPercentage of Total Portfolio2017-05-23 Agenda Packet Page 123 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2017 Fixed Income Management SUMMARY •The “Trump trade” dominated markets for much of the quarter, pushing interest rate and equity prices higher, as the Trump administration and the Republican Party continued to push a bold agenda that promised new jobs, lower taxes, deregulation, and massive infrastructure spending. •On March 15, with almost unanimous certainty from the market, the Federal Open Market Committee (FOMC) raised the federal funds target range by 0.25% to a range of 0.75% to 1.00%. The FOMC also released updated economic forecasts and a new “dot plot.” These were largely unchanged from the forecasts released in December. •Central banks in the developed world outside of the United States continued to apply highly accommodative monetary policies as economic growth and inflation remained subdued. As a result, sovereign bond yields were at or near historic lows, with yields throughout Europe and Japan below 0%. Emerging markets experienced a resurgence this past quarter, after reeling from lack of positive investor sentiment, turning in a strong beginning to 2017. ECONOMIC SNAPSHOT •The pace of U.S. economic expansion slowed in the fourth quarter of 2016. Measurements of growth in the first quarter of 2017 are forecasted to slow further; however, the labor market remained strong, consumer confidence continued to soar, business surveys picked up, and the housing market returned to near pre-crisis levels as the market continues to digest the size and scope of the Trump administration’s proposed policies. •U.S. gross domestic product (GDP) grew at a rate of 2.1% in the fourth quarter of 2016, a slowdown from the third quarter’s pace of 3.5%. The deceleration reflected downturns in exports and federal government spending, and a deceleration in business investment. First quarter estimates are calling for further slowing in the pace of expansion to below 1.5% as consumer spending declines and business investment remains muted. •The labor market added over 500,000 jobs in the first quarter as the unemployment rate declined to a decade low of 4.5% with the labor force participation rate rising to 63% for the first time in a year. Wage growth remained firm in the quarter, increasing at an annual rate of more than 2.5% during all three months. •Confidence among Americans grew as the Conference Board’s March reading increased to its highest level since the end of 2000. Manufacturing extended its expansion during the quarter with the ISM manufacturing PMI rebounding, after contracting over 2016 year-end, to its highest level since the end of 2014. On the housing front, existing home sales reached pre-crisis levels, selling at an annual rate of 5.69 million to start the year. INTEREST RATES •Short-term (under five years) yields ended the first quarter higher, reflecting the Fed’s March rate hike, while medium- to long-term yields declined amid subdued inflation expectations. For much of the quarter, yields remained range bound until entering an upward trend at the start of March in anticipation of the expected FOMC March rate hike. They declined as the Fed reiterated its expectation for gradual tightening and the ability of the Trump administration to enact bold, pro-growth policies came into question. The 2-year Treasury yield ended the quarter only seven basis points over December 31, while the yield on the 10-year Treasury fell 6 basis points. •In the money market space, shorter-term Treasury yields rose as the expectation for a Fed rate hike gained certainty. Yields on commercial paper and certificates of deposit did not increase. However, yields on short-term credit instruments remained elevated and offered incremental yield. SECTOR PERFORMANCE •U.S. Treasury indexes posted positive returns in the first quarter of the year, the first positive quarter since the second quarter of 2016. Returns were largely generated by income rather than price appreciation as yields were little changed. •Federal agency yield spreads remained near historically tight levels throughout the quarter as the supply-demand imbalance continued. The sector outperformed comparable-maturity Treasuries for the third quarter in a row. •Corporate yield spreads continued to tighten during the quarter, reaching multi-year lows, before drifting mildly wider at the end of March. The sector generated strong outperformance relative to comparable-maturity Treasuries, as the sector turned in the sixth straight quarter of outperformance. •Mortgage-backed securities (MBS) generally underperformed Treasuries due to duration extensions and headline risk surrounding the potential reduction in the Fed’s balance sheet holdings. •Asset-backed securities (ABS) strongly outperformed Treasuries as AAA- rated tranches, in our view, continued to offer good value, adding to returns and diversification. 2017 PFM Asset Management LLC2017-05-23 Agenda Packet Page 124 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2017 Fixed Income Management Economic Snapshot Labor Market Dec '16 Mar '16 Unemployment Rate Feb'17 4.7%4.7%5.0% Change In Non-Farm Payrolls Feb'17 235,000 155,000 225,000 Average Hourly Earnings (YoY)Feb'17 2.8%2.9%2.5% Personal Income (YoY)Feb'17 4.6%3.6%3.6% Initial Jobless Claims (week)3/24/17 258,000 241,000 275,000 Growth Real GDP (QoQ SAAR)2017Q4 2.1%3.5%0.9% GDP Personal Consumption (QoQ SAAR)2017Q4 3.5%3.0%2.3% Retail Sales (YoY)Feb'17 5.7%4.4%1.7% ISM Manufacturing Survey (month)Mar'17 57.2 54.5 51.7 Existing Home Sales SAAR (month)Feb'17 5.48 mil. 5.51 mil. 5.39 mil. Inflation/Prices Personal Consumption Expenditures (YoY)Feb'17 2.1%1.6%0.8% Consumer Price Index (YoY)Feb'17 2.7%2.1%0.9% Consumer Price Index Core (YoY)Feb'17 2.2%2.2%2.2% Crude Oil Futures (WTI, per barrel)Mar'17 $50.60 $53.72 $38.34 Gold Futures (oz.)Mar'17 $1,247 $1,152 $1,234 Latest Unemployment Rate (left) vs. Change in Nonfarm Payrolls (right) Real GDP (QoQ) Consumer Price Index -1% 0% 1% 2% 3% Feb '14 Aug '14 Feb '15 Aug '15 Feb '16 Aug '16 Feb '17 CPI (YoY)Core CPI (YoY) 0 125K 250K 375K 4% 5% 6% 7% Feb '14 Aug '14 Feb '15 Aug '15 Feb '16 Aug '16 Feb '17 Change In Non-Farm Payrolls Unemployment Rate -2% 0% 2% 4% 6% Dec '13 Jun '14 Dec '14 Jun '15 Dec '15 Jun '16 Dec '16 2 2 1 1 1.Data as of Third Quarter 2016. 2.Data as of Fourth Quarter 2015. Note: YoY = year over year, QoQ = quarter over quarter, SAAR = seasonally adjusted annual rate, WTI = West Texas Intermediate crude oil. Source: Bloomberg. 2017 PFM Asset Management LLC2017-05-23 Agenda Packet Page 125 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2017 Fixed Income Management Source: Bloomberg. Interest Rate Overview U.S. Treasury Note Yields U.S. Treasury Yield Curve U.S. Treasury Yields Yield Curves as of 3/31/17 0% 1% 2% 3% 4%3-mo1-yr2-yr3-yr5-yr7-yr10-yr30-yrYieldMaturityMarch 31, 2017 December 31, 2016 March 31, 2016 Maturity March 31, 2017 December 31, 2016 Change over Quarter March 31, 2016 Change over Year 3-month 0.75%0.50% 0.25% 0.20% 0.55% 1-year 1.02%0.81% 0.21% 0.58% 0.44% 2-year 1.26%1.19% 0.07% 0.72% 0.54% 5-year 1.92%1.93%(0.01%)1.21% 0.71% 10-year 2.39%2.45%(0.06%)1.77% 0.62% 30-year 3.01%3.07%(0.06%)2.61% 0.40% 0% 1% 2% 3% 4% 5%3-mo1-yr2-yr3-yr5-yr7-yr10-yr25-yr30-yrYieldMaturity U.S. Treasury Federal Agency Industrial Corporates, A Rated 1.0% 1.5% 2.0% 2.5% 3.0% Dec '16 Jan '17 Feb '17 Mar '17Yield 2-Year 5-Year 10-Year 2017 PFM Asset Management LLC2017-05-23 Agenda Packet Page 126 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2017 Fixed Income Management Returns for periods greater than one year are annualized. Source: BofA Merrill Lynch Indices. March 31, 2017 Duration Yield 3 Month 1 Year 3 Years 1-3 Year Indices 1.89 1.27%0.26%0.25%0.72% 1.79 1.37%0.30%0.41%0.83% 1.93 1.92%0.60%1.32%1.41% 2.08 1.98%0.38%0.40%1.13% U.S. Treasury Federal Agency U.S. Corporates, A-AAA rated Agency MBS (0 to 3 years) Taxable Municipals 1.89 2.24%0.70%2.26%1.92% 1-5 Year Indices 2.70 1.48%0.37%(0.10%)1.14% 2.27 1.51%0.41%0.28%1.16% 2.77 2.19%0.80%1.29%1.96% 3.29 2.25%0.59%0.39%2.00% U.S. Treasury Federal Agency U.S. Corporates, A-AAA rated Agency MBS (0 to 5 years) Taxable Municipals 2.67 2.36%0.61%2.12%2.49% Master Indices (Maturities 1 Year or Greater) U.S. Treasury 6.25 1.92%0.68%(1.47%)2.32% Federal Agency 3.91 1.84%0.74%0.11%2.00% U.S. Corporates, A-AAA rated 6.98 3.01%1.11%1.65%3.54% Agency MBS (0 to 30 years)4.90 2.81%0.46%0.18%2.66% Taxable Municipals 3.81 2.81%0.59%1.49%3.13% As of 3/31/17 Returns for Periods ended 3/31/17 2017 PFM Asset Management LLC BofA Merrill Lynch Index Returns 2017-05-23 Agenda Packet Page 127 QUARTERLY MARKET SUMMARY For the Quarter Ended March 31, 2017 Fixed Income Management DISCLOSURES PFM is the marketing name for a group of affiliated companies providing a range of services. All services are provided through separate agreements with each company. This material is for general information purposes only and is not intended to provide specific advice or a specific recommendation. Investment advisory services are provided by PFM Asset Management LLC which is registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940. The information contained is not an offer to purchase or sell any securities. Additional applicable regulatory information is available upon request. For more information regarding PFM’s services or entities, please visit www.pfm.com. The views expressed within this material constitute the perspective and judgment of PFM Asset Management LLC at the time of distribution and are subject to change. Information is obtained from sources generally believed to be reliable and available to the public; however, PFM Asset Management LLC cannot guarantee its accuracy, completeness, or suitability. This material is for general information purposes only and is not intended to provide specific advice or recommendation. The information contained in this report is not an offer to purchase or sell any securities. © 2017 PFM Asset Management LLC. Further distribution is not permitted without prior written consent. 2017 PFM Asset Management LLC2017-05-23 Agenda Packet Page 128 For the Month Ending March 31, 2017Managed Account Detail of Securities Held CITY OF CHULA VISTA Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par U.S. Treasury Bond / Note US TREASURY NOTES DTD 07/31/2013 1.375% 07/31/2018 4,513,009.50 4,519,586.34 10,255.52 4,544,648.44 07/06/1507/02/15AaaAA+ 4,500,000.00 912828VQ0 1.05 US TREASURY NOTES DTD 10/31/2011 1.750% 10/31/2018 3,929,081.25 3,935,404.55 28,620.72 3,977,008.01 08/05/1508/04/15AaaAA+ 3,895,000.00 912828RP7 1.09 US TREASURY NOTES DTD 12/02/2013 1.250% 11/30/2018 7,980,295.40 7,984,558.84 33,411.74 7,994,314.46 07/06/1507/02/15AaaAA+ 7,975,000.00 912828A34 1.18 US TREASURY NOTES DTD 01/31/2012 1.250% 01/31/2019 1,000,312.00 997,175.82 2,071.82 994,023.44 02/23/1502/19/15AaaAA+ 1,000,000.00 912828SD3 1.41 US TREASURY NOTES DTD 06/02/2014 1.500% 05/31/2019 8,536,856.00 8,524,619.91 42,733.52 8,543,828.13 07/06/1507/02/15AaaAA+ 8,500,000.00 912828WL0 1.36 US TREASURY NOTES DTD 10/01/2012 1.000% 09/30/2019 2,045,157.42 2,050,350.91 56.42 2,039,348.83 04/27/1504/23/15AaaAA+ 2,065,000.00 912828TR1 1.29 US TREASURY NOTES DTD 10/01/2012 1.000% 09/30/2019 3,020,692.55 3,022,375.24 83.33 3,001,867.19 05/04/1505/01/15AaaAA+ 3,050,000.00 912828TR1 1.37 US TREASURY NOTES DTD 10/31/2014 1.500% 10/31/2019 1,503,046.50 1,496,082.93 9,447.51 1,493,496.09 06/29/1506/26/15AaaAA+ 1,500,000.00 912828F62 1.60 US TREASURY NOTES DTD 10/31/2014 1.500% 10/31/2019 8,517,263.50 8,500,435.20 53,535.91 8,500,664.06 07/06/1507/02/15AaaAA+ 8,500,000.00 912828F62 1.50 US TREASURY NOTES DTD 11/30/2012 1.000% 11/30/2019 2,967,423.00 2,964,347.01 10,054.95 2,940,468.75 05/28/1505/26/15AaaAA+ 3,000,000.00 912828UB4 1.46 US TREASURY NOTES DTD 12/01/2014 1.500% 11/30/2019 3,005,040.00 3,008,234.43 15,082.42 3,009,257.81 11/29/1611/29/16AaaAA+ 3,000,000.00 912828G61 1.39 US TREASURY NOTES DTD 02/28/2013 1.250% 02/29/2020 1,191,422.40 1,197,517.62 1,304.35 1,196,296.88 10/13/1510/08/15AaaAA+ 1,200,000.00 912828UQ1 1.32 US TREASURY NOTES DTD 02/28/2013 1.250% 02/29/2020 1,191,422.40 1,197,407.82 1,304.35 1,196,156.25 10/23/1510/23/15AaaAA+ 1,200,000.00 912828UQ1 1.33 US TREASURY NOTES DTD 02/28/2013 1.250% 02/29/2020 3,023,234.34 3,016,076.03 3,309.78 3,002,774.41 11/13/1511/13/15AaaAA+ 3,045,000.00 912828UQ1 1.59 232017-05-23 Agenda Packet Page 129 For the Month Ending March 31, 2017Managed Account Detail of Securities Held CITY OF CHULA VISTA Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par U.S. Treasury Bond / Note US TREASURY NOTES DTD 01/31/2016 1.375% 01/31/2021 2,957,931.00 3,017,037.99 6,837.02 3,020,507.81 06/10/1606/07/16AaaAA+ 3,000,000.00 912828N89 1.22 US TREASURY NOTES DTD 03/31/2016 1.250% 03/31/2021 3,427,812.50 3,502,527.32 119.54 3,503,007.81 06/10/1606/07/16AaaAA+ 3,500,000.00 912828Q37 1.23 218,228.90 58,809,999.76 58,933,737.96 1.32 58,957,668.37 58,930,000.00 Security Type Sub-Total Federal Agency Collateralized Mortgage Obligation FANNIE MAE SERIES 2015-M13 ASQ2 DTD 10/01/2015 1.646% 09/01/2019 1,355,825.74 1,363,812.83 1,859.93 1,369,540.20 10/30/1510/07/15AaaAA+ 1,355,961.74 3136AQDQ0 1.08 1,859.93 1,355,825.74 1,363,812.83 1.08 1,369,540.20 1,355,961.74 Security Type Sub-Total Federal Agency Bond / Note FFCB NOTES DTD 09/21/2012 0.830% 09/21/2017 614,762.61 615,000.00 141.79 615,000.00 09/21/1209/21/12AaaAA+ 615,000.00 3133EAY28 0.83 FREDDIE MAC (EX-CALLABLE) BONDS DTD 12/26/2012 0.850% 12/26/2017 2,996,409.00 3,000,000.00 6,729.17 3,000,000.00 12/26/1212/26/12AaaAA+ 3,000,000.00 3134G32L3 0.85 FANNIE MAE (CALLABLE) BONDS DTD 12/27/2012 0.900% 12/27/2017 2,993,316.00 3,000,000.00 7,050.00 3,000,000.00 12/27/1212/27/12AaaAA+ 3,000,000.00 3136G14X4 0.90 FREDDIE MAC (EX-CALLABLE) BONDS DTD 05/29/2013 1.000% 05/29/2018 2,994,705.00 3,000,000.00 10,166.67 3,000,000.00 05/29/1305/29/13AaaAA+ 3,000,000.00 3134G45W4 1.00 24,087.63 9,599,192.61 9,615,000.00 0.91 9,615,000.00 9,615,000.00 Security Type Sub-Total Corporate Note MORGAN STANLEY CORP NOTES DTD 12/05/2014 1.875% 01/05/2018 550,966.90 551,723.73 2,463.54 552,849.00 09/30/1609/30/16A3BBB+ 550,000.00 61761JVM8 1.46 BRANCH BANKING & TRUST NT (CALLABLE) DTD 11/21/2012 1.450% 01/12/2018 999,849.00 1,001,757.50 3,181.94 1,003,130.00 09/13/1609/08/16A2A- 1,000,000.00 05531FAM5 1.21 CITIGROUP INC CORP NOTES DTD 05/01/2013 1.750% 05/01/2018 499,858.00 500,875.77 3,645.83 501,275.00 09/30/1609/30/16Baa1BBB+ 500,000.00 172967GS4 1.59 242017-05-23 Agenda Packet Page 130 For the Month Ending March 31, 2017Managed Account Detail of Securities Held CITY OF CHULA VISTA Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par Corporate Note BERKSHIRE HATHAWAY NOTES DTD 05/15/2013 1.300% 05/15/2018 424,855.50 424,499.57 2,087.22 423,763.25 07/27/1507/23/15Aa2AA 425,000.00 084664BW0 1.41 BERKSHIRE HATHAWAY NOTES DTD 05/15/2013 1.300% 05/15/2018 1,345,542.36 1,346,137.21 6,610.36 1,346,336.50 07/15/1507/10/15Aa2AA 1,346,000.00 084664BW0 1.29 BANK OF AMERICA BANK NOTES DTD 06/05/2015 1.750% 06/05/2018 802,040.80 800,530.65 4,511.11 801,160.00 10/23/1510/20/15A1A+ 800,000.00 06050TMC3 1.69 CHEVRON CORP GLOBAL NOTES DTD 06/24/2013 1.718% 06/24/2018 1,504,816.50 1,509,306.44 6,943.58 1,523,610.00 04/27/1504/23/15Aa2AA- 1,500,000.00 166764AE0 1.21 GOLDMAN SACHS GROUP INC NOTES DTD 07/19/2013 2.900% 07/19/2018 506,475.00 508,872.35 2,900.00 512,255.00 09/30/1609/30/16A3BBB+ 500,000.00 38147MAA3 1.52 GOLDMAN SACHS GROUP INC NOTES DTD 07/19/2013 2.900% 07/19/2018 987,626.25 989,154.19 5,655.00 1,004,298.75 10/28/1510/28/15A3BBB+ 975,000.00 38147MAA3 1.77 CITIGROUP INC CORP NOTES DTD 09/26/2013 2.500% 09/26/2018 983,715.53 983,403.44 338.54 991,233.75 10/28/1510/28/15Baa1BBB+ 975,000.00 172967HC8 1.91 US BANCORP NOTES (CALLABLE) DTD 11/07/2013 1.950% 11/15/2018 3,017,970.00 3,010,819.05 22,100.00 3,021,840.00 08/19/1508/17/15A1A+ 3,000,000.00 91159HHE3 1.72 BANK OF NY MELLN CORP (CALLABLE) NOTES DTD 11/18/2013 2.100% 01/15/2019 1,007,411.00 1,003,881.20 4,433.33 1,007,240.00 09/21/1509/18/15A1A 1,000,000.00 06406HCP2 1.87 IBM CORP NOTE DTD 02/12/2014 1.950% 02/12/2019 1,511,070.00 1,514,102.28 3,981.25 1,528,290.00 04/27/1504/23/15Aa3AA- 1,500,000.00 459200HT1 1.44 TOYOTA MOTOR CREDIT CORP DTD 02/19/2016 1.700% 02/19/2019 1,532,573.46 1,529,883.67 3,034.50 1,529,816.40 02/19/1602/16/16Aa3AA- 1,530,000.00 89236TCU7 1.70 CISCO SYSTEMS INC GLOBAL NOTES DTD 03/03/2014 2.125% 03/01/2019 1,515,649.50 1,503,338.79 2,656.25 1,506,270.00 06/29/1506/26/15A1AA- 1,500,000.00 17275RAR3 2.01 APPLE INC GLOBAL NOTES DTD 05/06/2014 2.100% 05/06/2019 1,516,282.50 1,506,356.91 12,687.50 1,511,475.00 06/29/1506/26/15Aa1AA+ 1,500,000.00 037833AQ3 1.89 AMERCIAN EXPRESS CREDIT CORP NOTES DTD 08/15/2014 2.250% 08/15/2019 1,007,884.00 1,002,366.79 2,875.00 1,003,820.00 09/21/1509/18/15A2A- 1,000,000.00 0258M0DP1 2.15 252017-05-23 Agenda Packet Page 131 For the Month Ending March 31, 2017Managed Account Detail of Securities Held CITY OF CHULA VISTA Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par Corporate Note GENERAL ELECTRIC CAP CORP (CALLABLE) DTD 01/09/2015 2.200% 01/09/2020 1,516,194.00 1,525,785.29 7,516.67 1,533,555.00 06/01/1605/26/16A1AA- 1,500,000.00 36962G7M0 1.56 JPMORGAN CHASE & CO (CALLABLE) DTD 01/23/2015 2.250% 01/23/2020 1,003,443.00 995,544.61 4,250.00 993,230.00 09/21/1509/18/15A3A- 1,000,000.00 46625HKA7 2.41 JPMORGAN CHASE & CO (CALLABLE) DTD 01/23/2015 2.250% 01/23/2020 1,505,164.50 1,502,897.99 6,375.00 1,504,815.00 04/27/1504/23/15A3A- 1,500,000.00 46625HKA7 2.18 WELLS FARGO & CO DTD 02/02/2015 2.150% 01/30/2020 1,002,114.00 998,687.65 3,643.06 998,000.00 09/21/1509/18/15A2A 1,000,000.00 94974BGF1 2.20 WELLS FARGO & CO DTD 02/02/2015 2.150% 01/30/2020 1,503,171.00 1,500,033.98 5,464.58 1,500,045.00 03/27/1503/26/15A2A 1,500,000.00 94974BGF1 2.15 MICROSOFT CORP NOTE DTD 02/12/2015 1.850% 02/12/2020 2,005,460.00 2,005,803.20 5,036.11 2,006,200.00 01/17/1701/13/17AaaAAA 2,000,000.00 594918AY0 1.75 BOEING COMPANY CORP NOTES DTD 07/28/2009 4.875% 02/15/2020 1,631,266.50 1,629,495.72 9,343.75 1,634,145.00 02/23/1702/22/17A2A 1,500,000.00 097023AZ8 1.78 AMERICAN HONDA FINANCE CORP NOTES DTD 03/13/2015 2.150% 03/13/2020 1,503,402.00 1,503,671.79 1,612.50 1,506,045.00 03/27/1503/26/15A1A+ 1,500,000.00 02665WAU5 2.06 COMCAST CORP CORP NOTES DTD 08/19/2011 5.150% 04/30/2020 1,637,200.50 1,638,207.83 32,402.08 1,642,770.00 02/23/1702/22/17A3A- 1,500,000.00 63946BAD2 2.05 AMERICAN EXP CREDIT CORP NT (CALLABLE) DTD 05/26/2015 2.375% 05/26/2020 1,508,016.00 1,490,250.62 12,369.79 1,485,135.00 06/29/1506/26/15A2A- 1,500,000.00 0258M0DT3 2.59 BNY MELLON CORP NOTE (CALLABLE) DTD 08/17/2015 2.600% 08/17/2020 1,516,894.50 1,518,168.71 4,766.67 1,525,875.00 10/09/1510/08/15A1A 1,500,000.00 06406HDD8 2.22 AMERICAN HONDA FINANCE CB DTD 09/24/2015 2.450% 09/24/2020 1,009,589.00 1,004,058.52 476.39 1,005,680.00 10/09/1510/08/15A1A+ 1,000,000.00 02665WAZ4 2.33 PEPSICO INC CORP NOTES (CALLABLE) DTD 10/14/2015 2.150% 10/14/2020 2,011,426.00 2,026,502.22 19,947.22 2,032,540.00 06/06/1606/01/16A1A 2,000,000.00 713448DC9 1.76 MORGAN STANLEY CORP NOTES DTD 04/21/2016 2.500% 04/21/2021 447,570.00 452,407.25 5,000.00 452,893.50 05/16/1605/11/16A3BBB+ 450,000.00 61746BEA0 2.36 262017-05-23 Agenda Packet Page 132 For the Month Ending March 31, 2017Managed Account Detail of Securities Held CITY OF CHULA VISTA Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par Corporate Note 208,308.77 39,515,497.30 39,478,524.92 1.85 39,589,591.15 39,051,000.00 Security Type Sub-Total Commercial Paper BNP PARIBAS NY BRANCH COMM PAPER -- 0.000% 05/23/2017 2,995,704.00 2,994,150.00 0.00 2,969,625.00 08/26/1608/26/16P-1A-1 3,000,000.00 09659BSP6 1.36 BANK TOKYO MITSUBISHI UFJ LTD COMM PAPER DTD 02/28/2017 0.000% 08/22/2017 2,984,640.00 2,984,508.33 0.00 2,981,041.67 02/28/1702/28/17P-1A-1 3,000,000.00 06538BVN0 1.31 CREDIT AGRICOLE CIB NY COMM PAPER DTD 02/27/2017 0.000% 08/22/2017 2,985,648.00 2,985,938.31 0.00 2,982,791.67 02/28/1702/28/17P-1A-1 3,000,000.00 22533TVN3 1.19 0.00 8,965,992.00 8,964,596.64 1.29 8,933,458.34 9,000,000.00 Security Type Sub-Total Certificate of Deposit RABOBANK NEDERLAND NV CERT DEPOS DTD 04/27/2015 1.070% 04/21/2017 2,400,177.60 2,400,000.00 11,413.33 2,400,000.00 04/27/1504/22/15P-1A-1 2,400,000.00 21684BXH2 1.07 NORINCHUKIN BANK NY CERT DEPOS DTD 10/27/2016 1.260% 04/25/2017 3,000,645.30 3,000,059.31 16,380.00 3,000,434.86 10/31/1610/27/16P-1A-1 3,000,000.00 65602UFZ6 1.24 BANK OF NOVA SCOTIA HOUSTON CERT DEPOS DTD 08/26/2016 1.350% 07/25/2017 3,001,458.90 3,000,000.00 24,525.00 3,000,000.00 08/26/1608/26/16P-1A-1 3,000,000.00 06417GNH7 1.35 TORONTO DOMINION BANK NY CERT DEPOS DTD 08/26/2016 1.380% 08/21/2017 3,002,767.20 3,000,000.00 25,070.00 3,000,000.00 08/26/1608/26/16P-1A-1+ 3,000,000.00 89113WHS8 1.37 CANADIAN IMPERIAL BANK NY CD DTD 08/26/2016 1.390% 08/28/2017 3,002,991.00 3,000,000.00 25,251.67 3,000,000.00 08/26/1608/26/16P-1A-1 3,000,000.00 13606AY36 0.72 SKANDINAVISKA ENSKILDA BANKEN NY CD DTD 11/17/2015 1.480% 11/16/2017 2,997,855.00 3,000,000.00 16,773.33 3,000,000.00 11/17/1511/16/15P-1A-1 3,000,000.00 83050FBG5 1.48 BANK OF MONTREAL CHICAGO CERT DEPOS DTD 02/09/2017 1.880% 02/07/2019 3,020,724.00 3,000,000.00 7,990.00 3,000,000.00 02/09/1702/08/17Aa3A+ 3,000,000.00 06427KRC3 1.90 272017-05-23 Agenda Packet Page 133 For the Month Ending March 31, 2017Managed Account Detail of Securities Held CITY OF CHULA VISTA Dated Date/Coupon/Maturity CUSIP Rating Rating Date Date Cost at Cost Interest Cost Value Security Type/Description S&P Moody's Original YTM Accrued Amortized MarketTrade Settle Par 127,403.33 20,426,619.00 20,400,059.31 1.31 20,400,434.86 20,400,000.00 Security Type Sub-Total Asset-Backed Security / Collateralized Mortgage Obligation CARMX 2016-4 A2 DTD 10/26/2016 1.210% 11/15/2019 1,237,814.00 1,239,942.79 666.84 1,239,932.79 10/26/1610/19/16AaaAAA 1,240,000.00 14312QAB2 1.21 HONDA ABS 2016-1 A3 DTD 02/25/2016 1.220% 12/18/2019 747,606.98 749,929.00 330.42 749,893.43 02/25/1602/16/16NRAAA 750,000.00 43814NAC9 1.23 NISSAN ABS 2015-C A3 DTD 10/14/2015 1.370% 05/15/2020 858,095.53 859,930.64 523.64 859,890.52 10/14/1510/06/15AaaNR 860,000.00 65478AAD5 1.38 ALLY ABS 2016-3 A3 DTD 05/31/2016 1.440% 08/15/2020 529,156.88 529,959.31 339.20 529,948.54 05/31/1605/24/16AaaAAA 530,000.00 02007LAC6 1.44 BANK OF AMER CREDIT CARD TR 2015-A2 DTD 04/29/2015 1.360% 09/15/2020 998,979.70 1,000,956.21 604.44 1,001,328.12 10/28/1510/26/15AaaAAA 1,000,000.00 05522RCU0 1.30 HAROT 2016-4 A3 DTD 10/25/2016 1.210% 12/18/2020 1,140,312.06 1,149,934.66 502.49 1,149,925.37 10/25/1610/18/16NRAAA 1,150,000.00 43814RAC0 1.04 2,967.03 5,511,965.15 5,530,652.61 1.24 5,530,918.77 5,530,000.00 Security Type Sub-Total 143,881,961.74 144,396,611.69 1.43 582,855.59 144,286,384.27 144,185,091.56 Managed Account Sub-Total $143,881,961.74 $144,396,611.69 $582,855.59 $144,286,384.27 $144,185,091.56 1.43% $144,767,947.15 $582,855.59 Total Investments Accrued Interest Securities Sub-Total 282017-05-23 Agenda Packet Page 134 For the Month Ending January 31, 2017Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA Transaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method BUY 01/17/17 MICROSOFT CORP NOTE DTD 02/12/2015 1.850% 02/12/2020 594918AY0 (2,006,200.00)(15,930.56)(2,022,130.56) 2,000,000.00 01/13/17 (15,930.56) (2,022,130.56)(2,006,200.00) 2,000,000.00 Transaction Type Sub-Total INTEREST 01/25/17 FANNIE MAE SERIES 2015-M13 ASQ2 DTD 10/01/2015 1.646% 09/01/2019 3136AQDQ0 0.00 2,004.30 2,004.30 1,375,000.00 01/01/17 01/04/17 MONEY MARKET FUND MONEY0002 0.00 58.57 58.57 0.00 01/04/17 01/05/17 MORGAN STANLEY CORP NOTES DTD 12/05/2014 1.875% 01/05/2018 61761JVM8 0.00 5,156.25 5,156.25 550,000.00 01/05/17 01/09/17 GENERAL ELECTRIC CAP CORP (CALLABLE) DTD 01/09/2015 2.200% 01/09/2020 36962G7M0 0.00 16,500.00 16,500.00 1,500,000.00 01/09/17 01/12/17 BRANCH BANKING & TRUST NT (CALLABLE) DTD 11/21/2012 1.450% 01/12/2018 05531FAM5 0.00 7,250.00 7,250.00 1,000,000.00 01/12/17 01/15/17 PFIZER INC GLOBAL NOTES DTD 06/03/2013 0.900% 01/15/2017 717081DD2 0.00 9,000.00 9,000.00 2,000,000.00 01/15/17 01/15/17 ALLY ABS 2016-3 A3 DTD 05/31/2016 1.440% 08/15/2020 02007LAC6 0.00 636.00 636.00 530,000.00 01/15/17 01/15/17 NISSAN ABS 2015-C A3 DTD 10/14/2015 1.370% 05/15/2020 65478AAD5 0.00 981.83 981.83 860,000.00 01/15/17 01/15/17 BANK OF AMER CREDIT CARD TR 2015-A2 DTD 04/29/2015 1.360% 09/15/2020 05522RCU0 0.00 1,133.33 1,133.33 1,000,000.00 01/15/17 01/15/17 BANK OF NY MELLN CORP (CALLABLE) NOTES DTD 11/18/2013 2.100% 01/15/2019 06406HCP2 0.00 10,500.00 10,500.00 1,000,000.00 01/15/17 01/15/17 CARMX 2016-4 A2 DTD 10/26/2016 1.210% 11/15/2019 14312QAB2 0.00 1,250.33 1,250.33 1,240,000.00 01/15/17 01/18/17 HONDA ABS 2016-1 A3 DTD 02/25/2016 1.220% 12/18/2019 43814NAC9 0.00 762.50 762.50 750,000.00 01/18/17 01/18/17 HAROT 2016-4 A3 DTD 10/25/2016 1.210% 12/18/2020 43814RAC0 0.00 1,159.58 1,159.58 1,150,000.00 01/18/17 2017-05-23 Agenda Packet Page 135 For the Month Ending January 31, 2017Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA Transaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method INTEREST 01/19/17 GOLDMAN SACHS GROUP INC NOTES DTD 07/19/2013 2.900% 07/19/2018 38147MAA3 0.00 14,137.50 14,137.50 975,000.00 01/19/17 01/19/17 GOLDMAN SACHS GROUP INC NOTES DTD 07/19/2013 2.900% 07/19/2018 38147MAA3 0.00 7,250.00 7,250.00 500,000.00 01/19/17 01/23/17 JPMORGAN CHASE & CO (CALLABLE) DTD 01/23/2015 2.250% 01/23/2020 46625HKA7 0.00 11,250.00 11,250.00 1,000,000.00 01/23/17 01/23/17 JPMORGAN CHASE & CO (CALLABLE) DTD 01/23/2015 2.250% 01/23/2020 46625HKA7 0.00 16,875.00 16,875.00 1,500,000.00 01/23/17 01/30/17 WELLS FARGO & CO DTD 02/02/2015 2.150% 01/30/2020 94974BGF1 0.00 16,125.00 16,125.00 1,500,000.00 01/30/17 01/30/17 WELLS FARGO & CO DTD 02/02/2015 2.150% 01/30/2020 94974BGF1 0.00 10,750.00 10,750.00 1,000,000.00 01/30/17 01/31/17 US TREASURY NOTES DTD 01/31/2012 1.250% 01/31/2019 912828SD3 0.00 6,250.00 6,250.00 1,000,000.00 01/31/17 01/31/17 US TREASURY NOTES DTD 07/31/2013 1.375% 07/31/2018 912828VQ0 0.00 30,937.50 30,937.50 4,500,000.00 01/31/17 01/31/17 US TREASURY NOTES DTD 01/31/2016 1.375% 01/31/2021 912828N89 0.00 20,625.00 20,625.00 3,000,000.00 01/31/17 190,592.69 190,592.69 0.00 27,930,000.00 Transaction Type Sub-Total MATURITY 01/15/17 PFIZER INC GLOBAL NOTES DTD 06/03/2013 0.900% 01/15/2017 717081DD2 2,000,000.00 0.00 2,000,000.00 (2,620.00) 0.00 2,000,000.00 01/15/17 0.00 0.00 (2,620.00) 2,000,000.00 2,000,000.00 2,000,000.00 Transaction Type Sub-Total PAYDOWNS 01/25/17 FANNIE MAE SERIES 2015-M13 ASQ2 DTD 10/01/2015 1.646% 09/01/2019 3136AQDQ0 12,082.94 0.00 12,082.94 (121.00) 0.00 12,082.94 01/01/17 0.00 0.00 (121.00) 12,082.94 12,082.94 12,082.94 Transaction Type Sub-Total 5,882.94 174,662.13 180,545.07 (2,741.00) 0.00 Managed Account Sub-Total 2017-05-23 Agenda Packet Page 136 For the Month Ending January 31, 2017Managed Account Security Transactions & Interest CITY OF CHULA VISTA Total Security Transactions ($2,741.00)$180,545.07 $174,662.13 $5,882.94 $0.00 2017-05-23 Agenda Packet Page 137 For the Month Ending February 28, 2017Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA Transaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method BUY 02/09/17 BANK OF MONTREAL CHICAGO CERT DEPOS DTD 02/09/2017 1.880% 02/07/2019 06427KRC3 (3,000,000.00) 0.00 (3,000,000.00) 3,000,000.00 02/08/17 02/23/17 BOEING COMPANY CORP NOTES DTD 07/28/2009 4.875% 02/15/2020 097023AZ8 (1,634,145.00)(1,625.00)(1,635,770.00) 1,500,000.00 02/22/17 02/23/17 COMCAST CORP CORP NOTES DTD 08/19/2011 5.150% 04/30/2020 63946BAD2 (1,642,770.00)(24,247.92)(1,667,017.92) 1,500,000.00 02/22/17 02/28/17 BANK TOKYO MITSUBISHI UFJ LTD COMM PAPER DTD 02/28/2017 0.000% 08/22/2017 06538BVN0 (2,981,041.67) 0.00 (2,981,041.67) 3,000,000.00 02/28/17 02/28/17 CREDIT AGRICOLE CIB NY COMM PAPER DTD 02/27/2017 0.000% 08/22/2017 22533TVN3 (2,982,791.67) 0.00 (2,982,791.67) 3,000,000.00 02/28/17 (25,872.92) (12,266,621.26)(12,240,748.34) 12,000,000.00 Transaction Type Sub-Total INTEREST 02/01/17 MONEY MARKET FUND MONEY0002 0.00 5.91 5.91 0.00 02/01/17 02/25/17 FANNIE MAE SERIES 2015-M13 ASQ2 DTD 10/01/2015 1.646% 09/01/2019 3136AQDQ0 0.00 1,920.07 1,920.07 1,362,917.00 02/01/17 02/02/17 MONEY MARKET FUND MONEY0002 0.00 63.73 63.73 0.00 02/02/17 02/12/17 IBM CORP NOTE DTD 02/12/2014 1.950% 02/12/2019 459200HT1 0.00 14,625.00 14,625.00 1,500,000.00 02/12/17 02/12/17 MICROSOFT CORP NOTE DTD 02/12/2015 1.850% 02/12/2020 594918AY0 0.00 18,500.00 18,500.00 2,000,000.00 02/12/17 02/15/17 CARMX 2016-4 A2 DTD 10/26/2016 1.210% 11/15/2019 14312QAB2 0.00 1,250.33 1,250.33 1,240,000.00 02/15/17 02/15/17 ALLY ABS 2016-3 A3 DTD 05/31/2016 1.440% 08/15/2020 02007LAC6 0.00 636.00 636.00 530,000.00 02/15/17 02/15/17 NISSAN ABS 2015-C A3 DTD 10/14/2015 1.370% 05/15/2020 65478AAD5 0.00 981.83 981.83 860,000.00 02/15/17 02/15/17 BANK OF AMER CREDIT CARD TR 2015-A2 DTD 04/29/2015 1.360% 09/15/2020 05522RCU0 0.00 1,133.33 1,133.33 1,000,000.00 02/15/17 2017-05-23 Agenda Packet Page 138 For the Month Ending February 28, 2017Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA Transaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method INTEREST 02/15/17 AMERCIAN EXPRESS CREDIT CORP NOTES DTD 08/15/2014 2.250% 08/15/2019 0258M0DP1 0.00 11,250.00 11,250.00 1,000,000.00 02/15/17 02/17/17 BNY MELLON CORP NOTE (CALLABLE) DTD 08/17/2015 2.600% 08/17/2020 06406HDD8 0.00 19,500.00 19,500.00 1,500,000.00 02/17/17 02/18/17 HONDA ABS 2016-1 A3 DTD 02/25/2016 1.220% 12/18/2019 43814NAC9 0.00 762.50 762.50 750,000.00 02/18/17 02/18/17 HAROT 2016-4 A3 DTD 10/25/2016 1.210% 12/18/2020 43814RAC0 0.00 1,159.58 1,159.58 1,150,000.00 02/18/17 02/19/17 TOYOTA MOTOR CREDIT CORP DTD 02/19/2016 1.700% 02/19/2019 89236TCU7 0.00 13,005.00 13,005.00 1,530,000.00 02/19/17 02/28/17 US TREASURY NOTES DTD 02/28/2013 1.250% 02/29/2020 912828UQ1 0.00 7,500.00 7,500.00 1,200,000.00 02/28/17 02/28/17 US TREASURY NOTES DTD 02/28/2013 1.250% 02/29/2020 912828UQ1 0.00 19,031.25 19,031.25 3,045,000.00 02/28/17 02/28/17 US TREASURY NOTES DTD 02/28/2013 1.250% 02/29/2020 912828UQ1 0.00 7,500.00 7,500.00 1,200,000.00 02/28/17 118,824.53 118,824.53 0.00 19,867,917.00 Transaction Type Sub-Total MATURITY 02/22/17 ING (US) FUNDING LLC COMM PAPER -- 0.000% 02/22/2017 4497W0PN2 3,000,000.00 0.00 3,000,000.00 18,000.00 0.00 3,000,000.00 02/22/17 02/28/17 BANK OF TOKYO MITSUBISHI UFJ COMM PAPER -- 0.000% 02/28/2017 06538BPU1 3,000,000.00 0.00 3,000,000.00 18,250.83 0.00 3,000,000.00 02/28/17 02/28/17 CREDIT AGRICOLE CIB NY COMM PAPER -- 0.000% 02/28/2017 22533TPU4 3,000,000.00 0.00 3,000,000.00 18,100.00 0.00 3,000,000.00 02/28/17 0.00 0.00 54,350.83 9,000,000.00 9,000,000.00 9,000,000.00 Transaction Type Sub-Total PAYDOWNS 02/25/17 FANNIE MAE SERIES 2015-M13 ASQ2 DTD 10/01/2015 1.646% 09/01/2019 3136AQDQ0 4,209.90 0.00 4,209.90 (42.16) 0.00 4,209.90 02/01/17 2017-05-23 Agenda Packet Page 139 For the Month Ending February 28, 2017Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA Transaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method 0.00 0.00 (42.16) 4,209.90 4,209.90 4,209.90 Transaction Type Sub-Total SELL 02/09/17 BANK OF MONTREAL CHICAGO COMM PAPER -- 0.000% 06/02/2017 06366GT25 2,989,924.17 0.00 2,989,924.17 17,378.94 1,587.30 FIFO 3,000,000.00 02/08/17 0.00 1,587.30 17,378.94 2,989,924.17 2,989,924.17 3,000,000.00 Transaction Type Sub-Total (246,614.27) 92,951.61 (153,662.66) 71,687.61 1,587.30 Managed Account Sub-Total Total Security Transactions $71,687.61 ($153,662.66)$92,951.61 ($246,614.27)$1,587.30 2017-05-23 Agenda Packet Page 140 For the Month Ending March 31, 2017Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA Transaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method INTEREST 03/01/17 MONEY MARKET FUND MONEY0002 0.00 6.82 6.82 0.00 03/01/17 03/01/17 CISCO SYSTEMS INC GLOBAL NOTES DTD 03/03/2014 2.125% 03/01/2019 17275RAR3 0.00 15,937.50 15,937.50 1,500,000.00 03/01/17 03/25/17 FANNIE MAE SERIES 2015-M13 ASQ2 DTD 10/01/2015 1.646% 09/01/2019 3136AQDQ0 0.00 1,863.69 1,863.69 1,358,707.16 03/01/17 03/02/17 MONEY MARKET FUND MONEY0002 0.00 84.61 84.61 0.00 03/02/17 03/13/17 AMERICAN HONDA FINANCE CORP NOTES DTD 03/13/2015 2.150% 03/13/2020 02665WAU5 0.00 16,125.00 16,125.00 1,500,000.00 03/13/17 03/15/17 ALLY ABS 2016-3 A3 DTD 05/31/2016 1.440% 08/15/2020 02007LAC6 0.00 636.00 636.00 530,000.00 03/15/17 03/15/17 BANK OF AMER CREDIT CARD TR 2015-A2 DTD 04/29/2015 1.360% 09/15/2020 05522RCU0 0.00 1,133.33 1,133.33 1,000,000.00 03/15/17 03/15/17 CARMX 2016-4 A2 DTD 10/26/2016 1.210% 11/15/2019 14312QAB2 0.00 1,250.33 1,250.33 1,240,000.00 03/15/17 03/15/17 NISSAN ABS 2015-C A3 DTD 10/14/2015 1.370% 05/15/2020 65478AAD5 0.00 981.83 981.83 860,000.00 03/15/17 03/18/17 HONDA ABS 2016-1 A3 DTD 02/25/2016 1.220% 12/18/2019 43814NAC9 0.00 762.50 762.50 750,000.00 03/18/17 03/18/17 HAROT 2016-4 A3 DTD 10/25/2016 1.210% 12/18/2020 43814RAC0 0.00 1,159.58 1,159.58 1,150,000.00 03/18/17 03/21/17 FFCB NOTES DTD 09/21/2012 0.830% 09/21/2017 3133EAY28 0.00 2,552.25 2,552.25 615,000.00 03/21/17 03/24/17 AMERICAN HONDA FINANCE CB DTD 09/24/2015 2.450% 09/24/2020 02665WAZ4 0.00 12,250.00 12,250.00 1,000,000.00 03/24/17 03/26/17 CITIGROUP INC CORP NOTES DTD 09/26/2013 2.500% 09/26/2018 172967HC8 0.00 12,187.50 12,187.50 975,000.00 03/26/17 03/31/17 US TREASURY NOTES DTD 03/31/2016 1.250% 03/31/2021 912828Q37 0.00 21,875.00 21,875.00 3,500,000.00 03/31/17 03/31/17 US TREASURY NOTES DTD 10/01/2012 1.000% 09/30/2019 912828TR1 0.00 10,325.00 10,325.00 2,065,000.00 03/31/17 03/31/17 US TREASURY NOTES DTD 10/01/2012 1.000% 09/30/2019 912828TR1 0.00 15,250.00 15,250.00 3,050,000.00 03/31/17 2017-05-23 Agenda Packet Page 141 For the Month Ending March 31, 2017Managed Account Security Transactions & Interest CUSIP CITY OF CHULA VISTA Transaction Type Trade Settle Security Description Par Proceeds Principal Accrued Interest Total Cost Realized G/L Realized G/L Sale Amort Cost Method 114,380.94 114,380.94 0.00 21,093,707.16 Transaction Type Sub-Total MATURITY 03/01/17 NORDEA BANK FINLAND NY CERT DEPOS DTD 09/02/2016 1.190% 03/01/2017 65558LSH6 1,466,000.00 8,722.70 1,474,722.70 (671.63) 0.00 1,466,000.00 03/01/17 03/07/17 SOCIETE GENERALE NY CERT DEPOS DTD 09/08/2016 1.250% 03/07/2017 83369YCM6 3,000,000.00 18,750.00 3,018,750.00 0.00 0.00 3,000,000.00 03/07/17 27,472.70 0.00 (671.63) 4,493,472.70 4,466,000.00 4,466,000.00 Transaction Type Sub-Total PAYDOWNS 03/25/17 FANNIE MAE SERIES 2015-M13 ASQ2 DTD 10/01/2015 1.646% 09/01/2019 3136AQDQ0 2,745.42 0.00 2,745.42 (27.49) 0.00 2,745.42 03/01/17 0.00 0.00 (27.49) 2,745.42 2,745.42 2,745.42 Transaction Type Sub-Total 4,468,745.42 141,853.64 4,610,599.06 (699.12) 0.00 Managed Account Sub-Total Total Security Transactions ($699.12)$4,610,599.06 $141,853.64 $4,468,745.42 $0.00 2017-05-23 Agenda Packet Page 142 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 1 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) 1.0 Purpose: This “Investment Policy and Guidelines” (the “Investment Policy”) Policy is intended to provide guidelines for the prudent investment of the City of Chula Vista’s (the “City”) cash balances, and outline policies to assist in maximizing the efficiency of the City’s cash management system, while meeting the daily cash flow demands of the City. 2.0 Policy: The investment practices and policies of the City of Chula Vista are based upon state law and prudent money management. 3.0 Scope: This Investment Policy applies to all financial assets of the City of Chula Vista, as indicated in 3.1 below. These funds are accounted for in the City’s Comprehensive Annual Financial Report. 3.1 Funds: The Director of Finance/Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds, except for the employee’s retirement funds, which are administered separately, and those funds which are managed separately by trustees appointed under indenture agreements. The Director of Finance/Treasurer will strive to maintain the level of investment of this cash as close as possible to 100%. These funds are described in the City’s annual financial report and include: General Fund Special Revenue Funds Capital Project Funds Enterprise Funds Trust and Agency Funds Any new fund created by the legislative body, unless specifically exempted This Investment Policy applies to all transactions involving the financial assets and related activity of the foregoing funds. 2017-05-23 Agenda Packet Page 143 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 2 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) 4.0 Prudence: The standard of prudence to be used by the Director of Finance/Treasurer shall be the “prudent investor standard”. This shall be applied in the context of managing an overall portfolio. The “prudent investor standard” is applied to local agencies, pursuant to California Government Code Section 53600.3 which provides, in pertinent part: “ … all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency…” 4.1 Personal Responsibility: The Director of Finance/Treasurer, Assistant Director of Finance, Treasury Manager and Finance Manager as investment officers acting in accordance with written procedures and the Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments. 5.0 Objective: Consistent with this aim, investments are made under the terms and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are: 5.1 Safety: Safety of principal is the foremost objective of the investment program. Investments of the City of Chula Vista shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on 2017-05-23 Agenda Packet Page 144 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 3 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) individual securities do not exceed the income generated from the remainder of the portfolio. 5.2 Liquidity: The City of Chula Vista’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal. 5.3 Return on Investments: The City of Chula Vista’s investment portfolio shall be designed with the objective of attaining a market-average rate of return throughout budgetary and economic cycles (market interest rates), within the City’s Investment Policy’s risk parameters and the City’s cash flow needs. See also Section 16.0. 6.0 Delegation of Authority: The Director of Finance/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls and written procedures to regulate the activities of subordinate officials. The responsibility for the day-to-day investment of City funds will be delegated to the Assistant Director of Finance or their designee. The Director of Finance/Treasurer may delegate day-to-day investment decision making and execution authority to an investment advisor. The advisor shall follow the Investment Policy and such other written instructions as are provided. 7.0 Ethics and Conflicts of Interest: In addition to state and local statutes relating to conflicts of interest, all persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers, including investment advisors, are required to file annual disclosure statements as required for “public officials who manage public investments” [as defined and required by the Political Reform Act and related regulations, including Government Code Sections 81000, et seq., and the rules, regulations and guidelines promulgated by California’s Fair Political Practices Commission (FPPC)]. 8.0 Authorized Financial Dealers and Institutions: 2017-05-23 Agenda Packet Page 145 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 4 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) The City’s Director of Finance/Treasurer will maintain a list of the financial institutions and brokers/dealers authorized to provide investment and depository services and will perform an annual review of the financial condition and registrations of qualified bidders and require annual audited financial statements to be on file for each company. The City will utilize Moody’s Securities or other such services to determine financially sound institutions with which to do business. The City shall annually send a copy of the current Investment Policy to all financial institutions and brokers/dealers approved to do business with the City. As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City’s Director of Finance/Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City’s Director of Finance/Treasurer; or may be invested in the investments set forth in Section 9.0. To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than “satisfactory” in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California’s communities, including low- and moderate- income neighborhoods. To provide for the optimum yield in the investment of City funds, the City’s investment procedures shall encourage competitive bidding on transactions from approved brokers/dealers. In order to be approved by the City, the dealer must meet the following criteria: (i) the dealer must be a “primary” dealer or regional dealer that qualifies under Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule); (ii) the dealer’s institution must have an office in California; (iii) the dealer must be experienced in institutional trading practices and familiar with the California Government Code as related to investments appropriate for the City; and (iv) all other applicable criteria, as may be established in the investment procedures. All brokers/dealers and financial institutions who desire to become qualified bidders for investment transactions must submit a “Broker/Dealer Application” and related documents relative to eligibility including a current audited annual financial statement, U4 form for the broker, proof of state registration, proof of Financial Industry Regulatory Authority (FINRA) certification and a certification of having read and understood the City’s Investment Policy and agreeing to comply with the Investment Policy. The City’s Director of Finance/Treasurer shall determine if they are adequately capitalized (i.e. minimum capital requirements of $10,000,000 and five years of operation). If the City has an investment advisor, the investment advisor may use its own list of authorized broker/dealers to conduct transactions on behalf of the City. 2017-05-23 Agenda Packet Page 146 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 5 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) 9.0 Authorized & Suitable Investments: The City is authorized by California Government Code Section 53600, et. seq., to invest in specific types of securities. Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the Director of Finance/Treasurer will perform a timely review and decide whether to sell or hold the investment. Investments not specifically listed below are deemed inappropriate and prohibited: A. BANKERS’ ACCEPTANCES. A maximum of 40% of the portfolio may be invested in bankers’ acceptances. The maximum maturity is 180 days. Eligible bankers’ acceptances shall have the highest ranking or the highest letter and number rating in a rating category as provided by a nationally recognized statistical rating organization (NRSRO). B. NEGOTIABLE CERTIFICATES OF DEPOSIT. A maximum of 30% of the portfolio may be invested in negotiable certificates of deposit (NCD’s). The maximum maturity of a NCD issue shall be 5 years. These are issued by commercial banks and thrift institutions against funds deposited for specified periods of time and earn specified or variable rates of interest. Negotiable certificates of deposit (NCD) differ from other certificates of deposit by their liquidity. NCD’s are traded actively in secondary markets. NCD’s with maturities under one year must be rated in a rating category of at least “A-1,” its equivalent, or better by a NRSRO. NCD’s with maturities in excess of one year must be rated in a rating category of “A,” its equivalent or better by a NRSRO. In compliance with California Code 53601.8, all FDIC insured CD’s, when placed through a deposit placement service, will be measured for compliance with NCD’s. C. COMMERCIAL PAPER. A maximum of 25% of the portfolio may be invested in commercial paper. The maximum maturity is 270 days. Commercial paper of prime quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2): 1) The entity meets the following criteria: a. Is organized and operating in the United States as a general corporation. b. Has total assets in excess of five hundred million dollars ($500,000,000). c. Has debt other than commercial paper, if any, that is rated in a rating category of “A” or higher, or the equivalent, by a NRSRO. 2017-05-23 Agenda Packet Page 147 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 6 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) 2) The entity meets the following criteria: a. Is organized within the United States as a special purpose corporation, trust, or limited liability company. b. Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. c. Has commercial paper that is rated in a rating category of “A-1” or higher, or the equivalent, by a NRSRO. D. BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF CALIFORNIA. Bonds must have a rating in a rating category of n “A,” its equivalent rating or better from a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. E. OBLIGATIONS OF THE UNITED STATES TREASURY. United States Treasury Notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limit on the percentage of the portfolio that can be invested in this category. F. FEDERAL AGENCIES. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There is no limit on the percentage of the portfolio that can be invested in this category. G. REPURCHASE AGREEMENT, maximum term 3 months. Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed 3 months. A Master Repurchase Agreement must be signed with the bank or broker/dealer who is selling the securities to the City. There is no limit on the percentage of the portfolio that can be invested in this category. H. REVERSE-REPURCHASE AGREEMENTS (Requires Council approval for each transaction). Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met: a) The security to be sold on reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. b) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20% of the base value of the 2017-05-23 Agenda Packet Page 148 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 7 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) portfolio. c) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. d) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counter party by way of a reverse repurchase agreement or securities lending agreement, shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with a local agency. e) For purposes of this policy, “significant banking relationship” means any of the following activities of a bank: i. Involvement in the creation, sale, purchase, or retirement of a local agency’s bonds, warrants, notes, or other evidence of indebtedness. ii. Financing of a local agency’s activities. iii. Acceptance of a local agency’s securities or funds as deposits. I. MEDIUM-TERM CORPORATE NOTES. A maximum of 30% of the portfolio may be invested in medium-term corporate notes, with a maximum remaining maturity of five years or less. Notes eligible for investment shall be rated in a rating category of “A,” its equivalent or better by a NRSRO. J. TIME DEPOSITS-CERTIFICATES OF DEPOSIT (non-negotiable certificates of deposit). The maximum maturity is 3 years. Certificates of deposit are required to be collateralized as specified under Government Code Section 53630 et seq. The City, at its discretion, may waive the collateralization requirements for any portion that is covered by Federal Deposit Insurance Corporation (FDIC) insurance. The City shall have a signed agreement with any depository accepting City funds per Government Code Section 53649. No deposits shall be made at any time 2017-05-23 Agenda Packet Page 149 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 8 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) in certificates of deposit issued by a state or federal credit union if a member of the City Council or the Chief Financial Officer serves on the board of directors or any committee appointed by the board of directors of the credit union. In accordance with Government Code Section 53638, any deposit shall not exceed that total shareholder’s equity of any depository bank, nor shall the deposit exceed the total net worth of any institution. There is no limit on the percentage of the portfolio that can be invested in this category. K. OBLIGATIONS OF THE STATE OF CALIFORNIA. Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state, or by a department, board, agency or authority of the state. Obligations must be rated in a rating category of “A,” its equivalent rated or better by a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. L. OBLIGATIONS OF THE OTHER 49 STATES. Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by any of these states, or by a department, board, agency or authority of the state. Obligations must be rated in a rating category of “A,” rated its equivalent or better by a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. M. MONEY MARKET FUNDS. A maximum of 20% of the portfolio may be invested in money market funds. No more than 10% of the City’s portfolio may be invested in shares of beneficial interest of any one Money Market fund. Local agencies may invest in “shares of beneficial interest” issued by diversified management companies which invest only in direct obligations in U.S. Treasury bills, notes and bonds, and repurchase agreements collateralized with U.S. Treasuries with a weighted average of 60 days or less. They must have the highest rating from two NRSRO’s or have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds and with assets under management in excess of $500,000,000. The purchase price of the shares may not include commission. N. SAN DIEGO COUNTY TREASURER’S POOLED MONEY FUND. Also known as the San Diego County Investment Pool, the pool is a local government money fund created to invest the assets of the County of San Diego and other public agencies located within the County. The three primary objectives of the County Pool are to safeguard principal; to meet liquidity needs of Pool participants; and to achieve an investment return on the funds within the guidelines of prudent risk management. Investment in the County Pool is highly liquid and the City may invest with no portfolio percentage limit. 2017-05-23 Agenda Packet Page 150 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 9 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) O. THE LOCAL AGENCY INVESTMENT FUND (LAIF). LAIF is a special fund of the California State Treasury through which any local government may pool investments. The City may invest up to $50 million in this fund. Investments in LAIF are highly liquid and may be converted to cash within 24 hours. P. SHARES OF BENEFICIAL INTEREST ISSUED BY A JOINT POWERS AUTHORITY (Local Government Investment Pools [LGIP]). There is no limit on the percentage of the portfolio that can be invested in this category. LGIP’s organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (o) of California Government Code Section 53601, inclusive. Each share will represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria: • The adviser is registered or exempt from registration with the Securities and Exchange Commission. • The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (o) Government Code Section 53601, inclusive. • The adviser has assets under management in excess of five hundred million dollars ($500,000,000). Q. ASSET BACKED SECURITIES (ABS). A maximum of 20% of the portfolio may be invested in ABS. The maximum maturity is five years. Securities eligible for investment under this subdivision shall be issued by an issuer rated in a rating category of having an “A,” its equivalent or higher rating for the issuer’s debt as provided by an NRSRO and rated in a rating category of “AA” or its equivalent or better by an NRSRO. ABS constitutes a mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond. R. SUPRANATIONALS. A maximum of 30% of the portfolio may be invested in supranationals. The maximum maturity is five years. Securities eligible for purchase under this subdivision shall be United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank that are eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA,” its equivalent or better by an NRSRO. 2017-05-23 Agenda Packet Page 151 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 10 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) 9.1 Investment Pools: The City’s Director of Finance/Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing at least a quarterly review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency. 10.0 Portfolio Adjustments: Should any investment listed in section 9.0 exceed a percentage-of-portfolio limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Director of Finance/Treasurer shall consider reconstructing the portfolio basing his or her decision on the expected length of time the portfolio will be unbalanced. If this occurs, the City Council shall be notified. 11.0 Collateralization: Under provisions of the California Government Code, California banks, and savings and loan associations are required to secure the City’s deposits by pledging government securities with a value of 110 % of principal and accrued interest. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total deposits. Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The market value of securities that underlay a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102% no later than the next business day. The Director of Finance/Treasurer, at his or her discretion, may waive the collateral requirement for deposits that are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The right of collateral substitution is granted. 12.0 Safekeeping and Custody: All City investments shall identify the City of Chula Vista as the registered owner, and all interest and 2017-05-23 Agenda Packet Page 152 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 11 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) principal payments and withdrawals shall indicate the City of Chula Vista as the payee. All securities shall be safe kept with the City itself or with a qualified financial institution, contracted by the City as a third party. All agreements and statements will be subject to review annually by external auditors in conjunction with their audit. In the event that the City has a financial institution hold the securities, a separate custodial agreement shall be required. All securities shall be acquired by the safekeeping institution on a “Delivery-Vs-Payment” (DVP) basis. For Repurchase Agreements, the purchase may be delivered by book entry, physical delivery or by third-party custodial agreement consistent with the Government Code. The transfer of securities to the counter party bank’s customer book entry account may be used for book entry delivery. 13.0 Diversification: The City’s investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific security types, maturity segment, or in individual financial institutions. No more than 5% of the investment portfolio shall be in securities of any one issuer except for U.S. Treasuries, U.S. Government Agency issues, and investment pools such as LAIF, the San Diego County Pool, money market funds, and local government investment pools (LGIP’s). A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by investing in those securities with an “A” or above rating and approved in the Investment Policy and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City’s cash flow. B. Market risk, defined as the risk of market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by implementing a long-term investment strategy. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of overall investment return. The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. 14.0 Maximum Maturities: To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five (5) years from the date of purchase, unless, the legislative body has granted express authority to make that investment either specifically, or as a part of an investment program 2017-05-23 Agenda Packet Page 153 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 12 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) approved by the City Council at least three (3) months prior to the investment. 15.0 Internal Control: The Director of Finance/Treasurer shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, or misrepresentation by third parties. No investment personnel, including an investment advisor, may engage in an investment transaction except as provided for under the terms of this Investment Policy and the procedure established by the Director of Finance/Treasurer. The external auditors shall annually review the investments with respect to the Investment Policy. This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing or maturing of investments and allocation of investments to fund balances shall be performed by the Finance Department and approved by the Director of Finance/Treasurer. To provide further protection of City funds, written procedures prohibit the wiring of any City funds without the authorization of at least two of the following four designated City staff: 1. Director of Finance/Treasurer 2. Assistant Director of Finance 3. Treasury Manager 4. Finance Manager 16.0 Performance Standards: The investment portfolio shall be managed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow. Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been met. In evaluating the performance of the City’s portfolio in complying with this policy, the City shall establish an appropriate performance benchmark and compare the return of its portfolio to the return of the benchmark. 17.0 Reporting: The Director of Finance/Treasurer shall submit a quarterly investment report to the City Council and City Manager following the end of each quarter. This report will include the following elements: 2017-05-23 Agenda Packet Page 154 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 13 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) Type of investment Institutional issuer Purchase date Date of maturity Amount of deposit or cost of the investment Face value of the investment Current market value of securities and source of valuation Rate of interest Interest earnings Statement relating the report to its compliance with the Statement of Investment Policy or the manner in which the portfolio is not in compliance Statement on availability of funds to meet the next six month’s obligations Monthly and year-to-date budget amounts for interest income Percentage of portfolio by investment type Days to maturity for all investments Comparative report on monthly investment balances & interest yields Monthly transactions Compare portfolio total return to market benchmark total return In addition, a commentary on capital markets and economic conditions may be included with the report. 18.0 Investment Policy Review and Adoption: This Investment Policy shall be reviewed at least annually by the Director of Finance/Treasurer to ensure its consistency with the overall objective of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. Each fiscal year, the Finance Director shall provide a copy of the City’s current Investment Policy and Guidelines to the City Council. By virtue of a resolution of the City Council of the City of Chula Vista, the Council shall acknowledge the receipt of the Policy for the respective fiscal year. 2017-05-23 Agenda Packet Page 155 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 14 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) GLOSSARY AGENCIES: Federal agency securities. ASKED: The price at which securities are offered. (The price at which a firm will sell a security to an investor.) BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. The drafts are drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. An acceptance is a high-grade negotiable instrument. BASIS POINT: One one-hundredth of a percent (i.e., 0.01 %). BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) BROKER: A broker brings buyers and sellers together for a commission. He does not take a position. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank of America, etc. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an 2017-05-23 Agenda Packet Page 156 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 15 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) exchange of a signed receipt for the securities. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions (e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $250,000 per deposit. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C.; 12 regional banks and about 5,700 commercial banks are members of the system. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): An investment pool offered by a state or local agency to public entities for the investment of public funds. MARKET VALUE: The price at which a security is trading and could presumable be purchased or sold. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATIONS (NRSROs): Credit rating agencies that issue credit ratings that the Securities and Exchange Commission (SEC) permits other financial firms to use for certain regulatory purposes. NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the financial 2017-05-23 Agenda Packet Page 157 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 16 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer). PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker/dealers, banks and a few unregulated firms. PRUDENT INVESTOR STANDARD: An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state-the so-called “legal list”. In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION (SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See “Uniform Net Capital Rule”. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. 2017-05-23 Agenda Packet Page 158 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 17 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years. TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial maturities of one year to ten years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 2017-05-23 Agenda Packet Page 159 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 1 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) 1.0 Purpose: This “Investment Policy and Guidelines” (the “Investment Policy”) Policy is intended to provide guidelines for the prudent investment of the City of Chula Vista’s (the “City”) cash balances, and outline policies to assist in maximizing the efficiency of the City’s cash management system, while meeting the daily cash flow demands of the City. 2.0 Policy: The investment practices and policies of the City of Chula Vista are based upon state law and prudent money management. 3.0 Scope: This Investment Policy applies to all financial assets of the City of Chula Vista, as indicated in 3.1 below. These funds are accounted for in the City’s Comprehensive Annual Financial Report. 3.1 Funds: The Director of Finance/Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds, except for the employee’s retirement funds, which are administered separately, and those funds which are managed separately by trustees appointed under indenture agreements. The Director of Finance/Treasurer will strive to maintain the level of investment of this cash as close as possible to 100%. These funds are described in the City’s annual financial report and include: General Fund Special Revenue Funds Capital Project Funds Enterprise Funds Trust and Agency Funds Any new fund created by the legislative body, unless specifically exempted This Investment Policy applies to all transactions involving the financial assets and related activity of the foregoing funds. 2017-05-23 Agenda Packet Page 160 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 2 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) 4.0 Prudence: The standard of prudence to be used by the Director of Finance/Treasurer shall be the “prudent investor standard”. This shall be applied in the context of managing an overall portfolio. The “prudent investor standard” is applied to local agencies, pursuant to California Government Code Section 53600.3 which provides, in pertinent part: “ … all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency…” 4.1 Personal Responsibility: The Director of Finance/Treasurer, Assistant Director of Finance, Treasury Manager and Finance Manager as investment officers acting in accordance with written procedures and the Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments. 5.0 Objective: Consistent with this aim, investments are made under the terms and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are: 5.1 Safety: Safety of principal is the foremost objective of the investment program. Investments of the City of Chula Vista shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on 2017-05-23 Agenda Packet Page 161 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 3 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) individual securities do not exceed the income generated from the remainder of the portfolio. 5.2 Liquidity: The City of Chula Vista’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal. 5.3 Return on Investments: The City of Chula Vista’s investment portfolio shall be designed with the objective of attaining a market-average rate of return throughout budgetary and economic cycles (market interest rates), within the City’s Investment Policy’s risk parameters and the City’s cash flow needs. See also Section 16.0. 6.0 Delegation of Authority: The Director of Finance/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls and written procedures to regulate the activities of subordinate officials. The responsibility for the day-to-day investment of City funds will be delegated to the Assistant Director of Finance or their designee. The Director of Finance/Treasurer may delegate day-to-day investment decision making and execution authority to an investment advisor. The advisor shall follow the Investment Policy and such other written instructions as are provided. 7.0 Ethics and Conflicts of Interest: In addition to state and local statutes relating to conflicts of interest, all persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers, including investment advisors, are required to file annual disclosure statements as required for “public officials who manage public investments” [as defined and required by the Political Reform Act and related regulations, including Government Code Sections 81000, et seq., and the rules, regulations and guidelines promulgated by California’s Fair Political Practices Commission (FPPC)]. 8.0 Authorized Financial Dealers and Institutions: 2017-05-23 Agenda Packet Page 162 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 4 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) The City’s Director of Finance/Treasurer will maintain a list of the financial institutions and brokers/dealers authorized to provide investment and depository services and will perform an annual review of the financial condition and registrations of qualified bidders and require annual audited financial statements to be on file for each company. The City will utilize Moody’s Securities or other such services to determine financially sound institutions with which to do business. The City shall annually send a copy of the current Investment Policy to all financial institutions and brokers/dealers approved to do business with the City. As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City’s Director of Finance/Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City’s Director of Finance/Treasurer; or may be invested in the investments set forth in Section 9.0. To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than “satisfactory” in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California’s communities, including low- and moderate- income neighborhoods. To provide for the optimum yield in the investment of City funds, the City’s investment procedures shall encourage competitive bidding on transactions from approved brokers/dealers. In order to be approved by the City, the dealer must meet the following criteria: (i) the dealer must be a “primary” dealer or regional dealer that qualifies under Securities and Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule); (ii) the dealer’s institution must have an office in California; (iii) the dealer must be experienced in institutional trading practices and familiar with the California Government Code as related to investments appropriate for the City; and (iv) all other applicable criteria, as may be established in the investment procedures. All brokers/dealers and financial institutions who desire to become qualified bidders for investment transactions must submit a “Broker/Dealer Application” and related documents relative to eligibility including a current audited annual financial statement, U4 form for the broker, proof of state registration, proof of Financial Industry Regulatory Authority (FINRA) certification and a certification of having read and understood the City’s Investment Policy and agreeing to comply with the Investment Policy. The City’s Director of Finance/Treasurer shall determine if they are adequately capitalized (i.e. minimum capital requirements of $10,000,000 and five years of operation). If the City has an investment advisor, the investment advisor may use its own list of authorized broker/dealers to conduct transactions on behalf of the City. 2017-05-23 Agenda Packet Page 163 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 5 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) 9.0 Authorized & Suitable Investments: The City is authorized by California Government Code Section 53600, et. seq., to invest in specific types of securities. Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the Director of Finance/Treasurer will perform a timely review and decide whether to sell or hold the investment. Investments not specifically listed below are deemed inappropriate and prohibited: A. BANKERS’ ACCEPTANCES. A maximum of 40% of the portfolio may be invested in bankers’ acceptances. The maximum maturity is 180 days. Eligible bankers’ acceptances shall have the highest ranking or the highest letter and number rating in a rating category as provided by a nationally recognized statistical rating organization (NRSRO). B. NEGOTIABLE CERTIFICATES OF DEPOSIT. A maximum of 30% of the portfolio may be invested in negotiable certificates of deposit (NCD’s). The maximum maturity of a NCD issue shall be 5 years. These are issued by commercial banks and thrift institutions against funds deposited for specified periods of time and earn specified or variable rates of interest. Negotiable certificates of deposit (NCD) differ from other certificates of deposit by their liquidity. NCD’s are traded actively in secondary markets. NCD’s with maturities under one year must be rated in a rating category of at least “A-1,” its equivalent, or better by a NRSRO. NCD’s with maturities in excess of one year must be rated in a rating category of “A,” its equivalent or better by a NRSRO. In compliance with California Code 53601.8, all FDIC insured CD’s, when placed through a deposit placement service, will be measured for compliance with NCD’s. C. COMMERCIAL PAPER. A maximum of 25% of the portfolio may be invested in commercial paper. The maximum maturity is 270 days. Commercial paper of prime quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2): 1) The entity meets the following criteria: a. Is organized and operating in the United States as a general corporation. b. Has total assets in excess of five hundred million dollars ($500,000,000). c. Has debt other than commercial paper, if any, that is rated in a rating category of “A” or higher, or the equivalent, by a NRSRO. 2017-05-23 Agenda Packet Page 164 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 6 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) 2) The entity meets the following criteria: a. Is organized within the United States as a special purpose corporation, trust, or limited liability company. b. Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. c. Has commercial paper that is rated in a rating category of “A-1” or higher, or the equivalent, by a NRSRO. D. BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF CALIFORNIA. Bonds must have a rating in a rating category of n “A,” its equivalent rating or better from a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. E. OBLIGATIONS OF THE UNITED STATES TREASURY. United States Treasury Notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limit on the percentage of the portfolio that can be invested in this category. F. FEDERAL AGENCIES. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There is no limit on the percentage of the portfolio that can be invested in this category. G. REPURCHASE AGREEMENT, maximum term 3 months. Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed 3 months. A Master Repurchase Agreement must be signed with the bank or broker/dealer who is selling the securities to the City. There is no limit on the percentage of the portfolio that can be invested in this category. H. REVERSE-REPURCHASE AGREEMENTS (Requires Council approval for each transaction). Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met: a) The security to be sold on reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. b) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20% of the base value of the 2017-05-23 Agenda Packet Page 165 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 7 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) portfolio. c) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. d) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counter party by way of a reverse repurchase agreement or securities lending agreement, shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or state-chartered bank that has or has had a significant banking relationship with a local agency. e) For purposes of this policy, “significant banking relationship” means any of the following activities of a bank: i. Involvement in the creation, sale, purchase, or retirement of a local agency’s bonds, warrants, notes, or other evidence of indebtedness. ii. Financing of a local agency’s activities. iii. Acceptance of a local agency’s securities or funds as deposits. I. MEDIUM-TERM CORPORATE NOTES. A maximum of 30% of the portfolio may be invested in medium-term corporate notes, with a maximum remaining maturity of five years or less. Notes eligible for investment shall be rated in a rating category of “A,” its equivalent or better by a NRSRO. J. TIME DEPOSITS-CERTIFICATES OF DEPOSIT (non-negotiable certificates of deposit). The maximum maturity is 3 years. Certificates of deposit are required to be collateralized as specified under Government Code Section 53630 et seq. The City, at its discretion, may waive the collateralization requirements for any portion that is covered by Federal Deposit Insurance Corporation (FDIC) insurance. The City shall have a signed agreement with any depository accepting City funds per Government Code Section 53649. No deposits shall be made at any time 2017-05-23 Agenda Packet Page 166 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 8 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) in certificates of deposit issued by a state or federal credit union if a member of the City Council or the Chief Financial Officer serves on the board of directors or any committee appointed by the board of directors of the credit union. In accordance with Government Code Section 53638, any deposit shall not exceed that total shareholder’s equity of any depository bank, nor shall the deposit exceed the total net worth of any institution. There is no limit on the percentage of the portfolio that can be invested in this category. K. OBLIGATIONS OF THE STATE OF CALIFORNIA. Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state, or by a department, board, agency or authority of the state. Obligations must be rated in a rating category of “A,” its equivalent rated or better by a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. L. OBLIGATIONS OF THE OTHER 49 STATES. Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by any of these states, or by a department, board, agency or authority of the state. Obligations must be rated in a rating category of “A,” rated its equivalent or better by a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. M. MONEY MARKET FUNDS. A maximum of 20% of the portfolio may be invested in money market funds. No more than 10% of the City’s portfolio may be invested in shares of beneficial interest of any one Money Market fund. Local agencies may invest in “shares of beneficial interest” issued by diversified management companies which invest only in direct obligations in U.S. Treasury bills, notes and bonds, and repurchase agreements collateralized with U.S. Treasuries with a weighted average of 60 days or less. They must have the highest rating from two NRSRO’s or have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds and with assets under management in excess of $500,000,000. The purchase price of the shares may not include commission. N. SAN DIEGO COUNTY TREASURER’S POOLED MONEY FUND. Also known as the San Diego County Investment Pool, the pool is a local government money fund created to invest the assets of the County of San Diego and other public agencies located within the County. The three primary objectives of the County Pool are to safeguard principal; to meet liquidity needs of Pool participants; and to achieve an investment return on the funds within the guidelines of prudent risk management. Investment in the County Pool is highly liquid and the City may invest with no portfolio percentage limit. 2017-05-23 Agenda Packet Page 167 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 9 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) O. THE LOCAL AGENCY INVESTMENT FUND (LAIF). LAIF is a special fund of the California State Treasury through which any local government may pool investments. The City may invest up to $50 million in this fund. Investments in LAIF are highly liquid and may be converted to cash within 24 hours. P. SHARES OF BENEFICIAL INTEREST ISSUED BY A JOINT POWERS AUTHORITY (Local Government Investment Pools [LGIP]). There is no limit on the percentage of the portfolio that can be invested in this category. LGIP’s organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (o) of California Government Code Section 53601, inclusive. Each share will represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria: • The adviser is registered or exempt from registration with the Securities and Exchange Commission. • The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (o) Government Code Section 53601, inclusive. • The adviser has assets under management in excess of five hundred million dollars ($500,000,000). Q. ASSET BACKED SECURITIES (ABS). A maximum of 20% of the portfolio may be invested in ABS. The maximum maturity is five years. Securities eligible for investment under this subdivision shall be issued by an issuer rated in a rating category of having an “A,” its equivalent or higher rating for the issuer’s debt as provided by an NRSRO and rated in a rating category of “AA” or its equivalent or better by an NRSRO. ABS constitutes a mortgage pass-through security, collateralized mortgage obligation, mortgage-backed or other pay-through bond, equipment lease-backed certificate, consumer receivable pass-through certificate, or consumer receivable-backed bond. R. SUPRANATIONALS. A maximum of 30% of the portfolio may be invested in supranationals. The maximum maturity is five years. Securities eligible for purchase under this subdivision shall be United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank that are eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA,” its equivalent or better by an NRSRO. 2017-05-23 Agenda Packet Page 168 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 10 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) 9.1 Investment Pools: The City’s Director of Finance/Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing at least a quarterly review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency. 10.0 Portfolio Adjustments: Should any investment listed in section 9.0 exceed a percentage-of-portfolio limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Director of Finance/Treasurer shall consider reconstructing the portfolio basing his or her decision on the expected length of time the portfolio will be unbalanced. If this occurs, the City Council shall be notified. 11.0 Collateralization: Under provisions of the California Government Code, California banks, and savings and loan associations are required to secure the City’s deposits by pledging government securities with a value of 110 % of principal and accrued interest. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total deposits. Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The market value of securities that underlay a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102% no later than the next business day. The Director of Finance/Treasurer, at his or her discretion, may waive the collateral requirement for deposits that are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The right of collateral substitution is granted. 12.0 Safekeeping and Custody: All City investments shall identify the City of Chula Vista as the registered owner, and all interest and 2017-05-23 Agenda Packet Page 169 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 11 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) principal payments and withdrawals shall indicate the City of Chula Vista as the payee. All securities shall be safe kept with the City itself or with a qualified financial institution, contracted by the City as a third party. All agreements and statements will be subject to review annually by external auditors in conjunction with their audit. In the event that the City has a financial institution hold the securities, a separate custodial agreement shall be required. All securities shall be acquired by the safekeeping institution on a “Delivery-Vs-Payment” (DVP) basis. For Repurchase Agreements, the purchase may be delivered by book entry, physical delivery or by third-party custodial agreement consistent with the Government Code. The transfer of securities to the counter party bank’s customer book entry account may be used for book entry delivery. 13.0 Diversification: The City’s investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific security types, maturity segment, or in individual financial institutions. No more than 5% of the investment portfolio shall be in securities of any one issuer except for U.S. Treasuries, U.S. Government Agency issues, and investment pools such as LAIF, the San Diego County Pool, money market funds, and local government investment pools (LGIP’s). A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by investing in those securities with an “A” or above rating and approved in the Investment Policy and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City’s cash flow. B. Market risk, defined as the risk of market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by implementing a long-term investment strategy. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of overall investment return. The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. 14.0 Maximum Maturities: To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five (5) years from the date of purchase, unless, the legislative body has granted express authority to make that investment either specifically, or as a part of an investment program 2017-05-23 Agenda Packet Page 170 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 12 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) approved by the City Council at least three (3) months prior to the investment. 15.0 Internal Control: The Director of Finance/Treasurer shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, or misrepresentation by third parties. No investment personnel, including an investment advisor, may engage in an investment transaction except as provided for under the terms of this Investment Policy and the procedure established by the Director of Finance/Treasurer. The external auditors shall annually review the investments with respect to the Investment Policy. This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing or maturing of investments and allocation of investments to fund balances shall be performed by the Finance Department and approved by the Director of Finance/Treasurer. To provide further protection of City funds, written procedures prohibit the wiring of any City funds without the authorization of at least two of the following four designated City staff: 1. Director of Finance/Treasurer 2. Assistant Director of Finance 3. Treasury Manager 4. Finance Manager 16.0 Performance Standards: The investment portfolio shall be managed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow. Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been met. In evaluating the performance of the City’s portfolio in complying with this policy, the City shall establish an appropriate performance benchmark and compare the return of its portfolio to the return of the benchmark. 17.0 Reporting: The Director of Finance/Treasurer shall submit a quarterly investment report to the City Council and City Manager following the end of each quarter. This report will include the following elements: 2017-05-23 Agenda Packet Page 171 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 13 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) Type of investment Institutional issuer Purchase date Date of maturity Amount of deposit or cost of the investment Face value of the investment Current market value of securities and source of valuation Rate of interest Interest earnings Statement relating the report to its compliance with the Statement of Investment Policy or the manner in which the portfolio is not in compliance Statement on availability of funds to meet the next six month’s obligations Monthly and year-to-date budget amounts for interest income Percentage of portfolio by investment type Days to maturity for all investments Comparative report on monthly investment balances & interest yields Monthly transactions Compare portfolio total return to market benchmark total return In addition, a commentary on capital markets and economic conditions may be included with the report. 18.0 Investment Policy Review and Adoption: This Investment Policy shall be reviewed at least annually by the Director of Finance/Treasurer to ensure its consistency with the overall objective of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. Each fiscal year, the Finance Director shall provide a copy of the City’s current Investment Policy and Guidelines to the City Council. By virtue of a resolution of the City Council of the City of Chula Vista, the Council shall acknowledge the receipt of the Policy for the respective fiscal year. 2017-05-23 Agenda Packet Page 172 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 14 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) GLOSSARY AGENCIES: Federal agency securities. ASKED: The price at which securities are offered. (The price at which a firm will sell a security to an investor.) BANKERS’ ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer. The drafts are drawn on a bank by an exporter or importer to obtain funds to pay for specific merchandise. An acceptance is a high-grade negotiable instrument. BASIS POINT: One one-hundredth of a percent (i.e., 0.01 %). BID: The price offered by a buyer of securities. (When you are selling securities, you ask for a bid.) BROKER: A broker brings buyers and sellers together for a commission. He does not take a position. CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD’s are typically negotiable. COLLATERAL: Securities, evidence of deposit or other property, which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMMERCIAL PAPER: Short term unsecured promissory note issued by a corporation to raise working capital. These negotiable instruments are purchased at a discount to par value or at par value with interest bearing. Commercial paper is issued by corporations such as General Motors Acceptance Corporation, IBM, Bank of America, etc. DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DELIVERY VERSUS PAYMENT: There are two methods of delivery of securities: delivery versus payment and delivery versus receipt. Delivery versus payment is delivery of securities with an exchange of money for the securities. Delivery versus receipt is delivery of securities with an 2017-05-23 Agenda Packet Page 173 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 15 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) exchange of a signed receipt for the securities. DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns. FEDERAL AGENCIES: Agencies of the Federal government set up to supply credit to various classes of institutions (e.g., S&L’s, small business firms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A Federal agency that insures bank deposits, currently up to $250,000 per deposit. FEDERAL RESERVE SYSTEM: The central bank of the United States created by Congress and consisting of a seven-member Board of Governors in Washington, D.C.; 12 regional banks and about 5,700 commercial banks are members of the system. LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow and reasonable size can be done at those quotes. LOCAL AGENCY INVESTMENT FUND (LAIF): The aggregate of all funds from political subdivisions that are placed in the custody of the State Treasurer for investment and reinvestment. LOCAL GOVERNMENT INVESTMENT POOL (LGIP): An investment pool offered by a state or local agency to public entities for the investment of public funds. MARKET VALUE: The price at which a security is trading and could presumable be purchased or sold. MATURITY: The date upon which the principal or stated value of an investment becomes due and payable. NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATIONS (NRSROs): Credit rating agencies that issue credit ratings that the Securities and Exchange Commission (SEC) permits other financial firms to use for certain regulatory purposes. NEGOTIABLE CERTIFICATES OF DEPOSIT: Unsecured obligations of the financial 2017-05-23 Agenda Packet Page 174 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 16 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) institution, bank or savings and loan, bought at par value with the promise to pay face value plus accrued interest at maturity. They are high-grade negotiable instruments, paying a higher interest rate than regular certificates of deposit. OFFER: The price asked by a seller of securities. (When you are buying securities, you ask for an offer). PORTFOLIO: Collection of securities held by an investor. PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC)-registered securities broker/dealers, banks and a few unregulated firms. PRUDENT INVESTOR STANDARD: An investment standard. In some states, the law requires that a fiduciary, such as a trustee, may invest money only in a list of securities selected by the custody state-the so-called “legal list”. In other states, the trustee may invest in a security if it is one that would be bought by a prudent person of discretion and intelligence who is seeking a reasonable income and preservation of capital. RATE OF RETURN: The yield obtainable on a security based on its purchase price or its current market price. SAFEKEEPING: A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank’s vaults for protection. SECONDARY MARKET: A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES & EXCHANGE COMMISSION (SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation. SEC RULE 15C3-1: See “Uniform Net Capital Rule”. TREASURY BILLS: A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year. 2017-05-23 Agenda Packet Page 175 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: INVESTMENT POLICY AND GUIDELINES POLICY NUMBER EFFECTIVE DATE PAGE 220-01 03/15/2016 05/23/2017 17 OF 17 ADOPTED BY: Resolution No. 17578 DATED: 07/26/94 AMENDED BY: Resolution Nos. 18571 (2/4/97); 19375 (2/16/99); 2000-050 (2/15/00); 2001-026 (2/13/01); 2002-039 (2/12/02); 2005-184 (6/7/05); 2006-176 (6/13/06); 2008-054 (2/12/08); 2010-045 (3/2/10); 2011-020 (2/22/11); 2012-034(3/13/12); 2013-020 (2/26/13); 2014-039 (3/11/14); 2014-191 (10/28/14); 2015-041 (3/03/2015); 2016-046 (03/15/2016); 2017-XXX (05/23/2017) TREASURY BOND: Long-term U.S. Treasury securities having initial maturities of more than 10 years. TREASURY NOTES: Intermediate-term coupon bearing U.S. Treasury having initial maturities of one year to ten years. UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash. YIELD: The rate of annual income return on an investment, expressed as a percentage. (a) Income Yield is obtained by dividing the current dollar income by the current market price for the security. (b) Net Yield or Yield to Maturity is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. 2017-05-23 Agenda Packet Page 176 City of Chula Vista Staff Report File#:17-0192, Item#: 7. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN UNCOLLECTIBLE ACCOUNTS RECEIVABLE WRITE-OFF POLICY RECOMMENDED ACTION Council adopt the resolution. SUMMARY The purpose of this policy is to provide guidelines and authorization levels by which a City of Chula Vista accounts receivable may be removed from the books of the City when the accounts have been deemed to be uncollectible. Where a debt is determined to be uncollectible it must be subject to a write-off process to comply with generally accepted accounting principles. ENVIRONMENTAL REVIEW Environmental Notice The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Determination The Director of Development Services 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 of the State CEQA Guidelines because it involves only adoption of a policy that governs how uncollectible debt is written-off; therefore, it 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 required. BOARD/COMMISSION RECOMMENDATION Not applicable DISCUSSION The City of Chula Vista currently collects payment for fees, charges and other collectibles associated with City operations. City staff diligently attempts to collect all monies due to the City from various revenue sources. However, not all outstanding receivables are secured as a normal course of business. Some accounts become uncollectible through a matter of law, such as bankruptcy, or practical application such as inability to locate the debtor or assets of the debtor. Other accounts become uncollectible when the statute of limitations expires. As a result, staff has identified the need for adoption and execution of a policy addressing accounts receivable and the write-off of uncollectible debt. City of Chula Vista Printed on 5/18/2017Page 1 of 2 powered by Legistar™2017-05-23 Agenda Packet Page 177 File#:17-0192, Item#: 7. Generally accepted accounting principles dictate the write-off of receivables to conservative collectable levels for financial reporting purposes. Where a debt is determined to be uncollectible it must be subject to a write-down process. Otherwise, the City will be overstating its assets on the balance sheet if these receivables are not adjusted to its realizable value when all reasonable efforts to collect have proven unsuccessful, and/or the statute of limitation has expired. In determining reasonable effort, the collection costs should not exceed the value of the receivables. The write-off of an uncollectible account is different from the forgiveness of an account due to the City. By writing-off the uncollectible accounts, the City is not forgiving them, but acknowledging that the collection of these accounts is doubtful. Additionally, writing-off of an account does not stop the City from pursuing further collection of the account should new information become available. The City Attorney’s Office and contracted collection agencies may continue attempting to collect upon these doubtful accounts and the City will recognize the revenue if a written-off account is subsequently collected. The attached accounts receivable policy establishes criteria under which an account may be written- off, describes due diligence documentation and defines authorization levels for write-offs. The recommended policy includes multiple administrative levels of authority and reporting to ensure adequate review of all delinquencies identified as potentially uncollectible. 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 policy supports the Operational Excellence strategy as it seeks to promote fiscal responsibility and accuracy in financial reporting. CURRENT YEAR FISCAL IMPACT Staff does not anticipate any fiscal impacts as a result of this policy. ONGOING FISCAL IMPACT Staff does not anticipate any ongoing fiscal impacts as a result of this policy. ATTACHMENTS 1. Uncollectible Accounts Receivable Write-Off Policy Staff Contact: Lisa Partee, Fiscal Management Analyst, Finance Department City of Chula Vista Printed on 5/18/2017Page 2 of 2 powered by Legistar™2017-05-23 Agenda Packet Page 178 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADOPTING AN UNCOLLECTIBLE ACCOUNTS RECEIVABLE WRITE-OFF POLICY WHEREAS, the City of Chula Vista desires to adopt guidelines and authorization levels for write-off of uncollectible accounts receivable; and WHEREAS, to this end, staff has drafted an Uncollectible Accounts Receivable Write- Off Policy; and WHEREAS, the proposed policy follows the generally accepted accounting principles of writing-off receivables to a conservative collectible level for financial reporting purposes in order to eliminate the overstatement of those assets on the City’s balance sheet; and WHEREAS, by writing-off the uncollectible accounts, the City is not forgiving them, but acknowledging that the collection of these accounts is doubtful; and WHEREAS, writing-off of an account does not stop the City from pursuing further collection of the account should new information become available; and WHEREAS, the attached accounts receivable policy establishes criteria under which an account may be written-off, describes due diligence documentation and defines authorization levels for write-offs. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby, accept and adopt the newly established Uncollectible Accounts Receivable Write-Off Policy as reflected in Exhibit 1. Presented by Approved as to form by David Bilby Glen R. Googins Director of Finance City Attorney 2017-05-23 Agenda Packet Page 179 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: UNCOLLECTIBLE ACCOUNTS RECEIVABLE WRITE-OFF POLICY POLICY NUMBER EFFECTIVE DATE PAGE 05/23/2017 1 of 4 ADOPTED BY: (Resolution No.) DATED: 5/23/2017 AMENDED BY: Resolution No. (date of resolution) I. PURPOSE: The purpose of this policy is to establish procedures for write-off of uncollectible accounts receivable debt and improve measurement of the City’s accounts receivable. II. POLICY A. BACKGROUND: A liability or debt to the City establishes an “accounts receivable.” This generally occurs when a City department issues an invoice for goods or services provided to an organization or a recipient. Other circumstances that also create an account receivable are: 1. Amounts due the City as a result of advances or payments under contracts where the spending is less than the advances or payments; 2. Overpayments, or payments in error, to vendors or providers; or 3. Any other circumstance where an obligation of money is due the City. B. SCOPE: This policy applies to all City departments and funds. C. PROCEDURES: Collection procedures are established by the Finance Department in collaboration with the responsible departments and will vary depending on the nature of the receivable. Types of receivables covered by this policy include but are not limited to: business license tax, transient occupancy tax; sewer utility billings; regulatory and development impact fees; fees for services; recovery for damage to City property; fines and penalties; and legal judgments. Accounts receivable should generally be written-off during the fiscal year in which an account is determined to be uncollectible. Subsequent collection of an account previously written-off will be treated as new revenue in the appropriate fund. 1. Designation of an Account as Uncollectible An account will be considered uncollectible after the appropriate collection procedures have been followed if it meets one or more of the following criteria: 2017-05-23 Agenda Packet Page 180 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: UNCOLLECTIBLE ACCOUNTS RECEIVABLE WRITE-OFF POLICY POLICY NUMBER EFFECTIVE DATE PAGE 05/23/2017 2 of 4 ADOPTED BY: (Resolution No.) DATED: 5/23/2017 AMENDED BY: Resolution No. (date of resolution) The debt is disputed and the City has insufficient documentation to pursue collection efforts; The cost of further collection efforts will exceed the estimated recovery amount; The amount is under $20 and remains unpaid after one year; The account remains unpaid after the lesser of four years or the applicable period for commencement of a recovery action (statute of limitations); The debtor cannot be located, nor any of the debtor’s assets; The debtor has no assets and there is no expectation they will have any in the future; The debtor has died and there is no known estate or guarantor; The debtor is a company which is no longer in business; The debt is discharged through legal action (bankruptcy or court judgment). 2. Preparation of Request for Write-Off of Accounts Receivable At least annually, Finance Department staff will identify any accounts receivable that meet the criteria for designation as an uncollectible account. A request for write-off of accounts receivable will be prepared and submitted to the Finance Treasury Manager. The request for write-off of accounts receivable must include an itemized list of the uncollectible accounts to be written off specifying the following: 2017-05-23 Agenda Packet Page 181 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: UNCOLLECTIBLE ACCOUNTS RECEIVABLE WRITE-OFF POLICY POLICY NUMBER EFFECTIVE DATE PAGE 05/23/2017 3 of 4 ADOPTED BY: (Resolution No.) DATED: 5/23/2017 AMENDED BY: Resolution No. (date of resolution) Account number of the receivable in the City’s accounting system; Debtor name; Account balance; Due date; Brief description of receivable type; and Criteria under which the account was deemed uncollectible. For each uncollectible account, documentation must be attached to the request to support the uncollectible account designation and substantiate that collection procedures have been followed and due diligence exercised in the collection efforts. Due diligence documentation could include: Invoices, reminder letters, or collection letters (and any documentation that are returned as undeliverable, no known forwarding address, etc.); Information from the California Department of Corporations; Referral to the City’s collection agency; Bankruptcy claim and any related plan or discharge; Judgment awarded by a court or settlement agreement; Notice of discontinuation of services. III. APPROVAL AUTHORITY: Upon receipt of a request for write-off of accounts receivable, the Finance Treasury Manager will review the request to ensure that it is complete and that all necessary due diligence documentation has been attached. Once the review has been completed, the qualified accounts to be written-off will be presented to the appropriate authorizing 2017-05-23 Agenda Packet Page 182 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: UNCOLLECTIBLE ACCOUNTS RECEIVABLE WRITE-OFF POLICY POLICY NUMBER EFFECTIVE DATE PAGE 05/23/2017 4 of 4 ADOPTED BY: (Resolution No.) DATED: 5/23/2017 AMENDED BY: Resolution No. (date of resolution) official for approval: The Director of Finance is authorized to approve the write-off of accounts with an outstanding balance due of up to $25,000; The City Manager is authorized to approve the write-off of accounts with an outstanding balance in excess of $25,000 and up to $100,000; Write-off of accounts with an outstanding balance due in excess of $100,000 must be approved by action of the City Council. FORMS Attachment 1: Uncollectible Accounts Receivable Debt Write-Off Request Form 2017-05-23 Agenda Packet Page 183 Acct Number Debtor Name Account Balance Due Date Receivable TypeReason for Debt Write‐OffPreparer:____________________________________Approver:________________________________________Name DateName DateReviewer:____________________________________Name DateUNCOLLECTIBLE ACCOUNTS RECEIVABLE DEBT WRITE‐OFF REQUEST2017-05-23 Agenda Packet Page 184 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: UNCOLLECTIBLE ACCOUNTS RECEIVABLE WRITE-OFF POLICY POLICY NUMBER EFFECTIVE DATE PAGE 05/23/2017 1 of 4 ADOPTED BY: (Resolution No.) DATED: 5/23/2017 AMENDED BY: Resolution No. (date of resolution) I. PURPOSE: The purpose of this policy is to establish procedures for write-off of uncollectible accounts receivable debt and improve measurement of the City’s accounts receivable. II. POLICY A. BACKGROUND: A liability or debt to the City establishes an “accounts receivable.” This generally occurs when a City department issues an invoice for goods or services provided to an organization or a recipient. Other circumstances that also create an account receivable are: 1. Amounts due the City as a result of advances or payments under contracts where the spending is less than the advances or payments; 2. Overpayments, or payments in error, to vendors or providers; or 3. Any other circumstance where an obligation of money is due the City. B. SCOPE: This policy applies to all City departments and funds. C. PROCEDURES: Collection procedures are established by the Finance Department in collaboration with the responsible departments and will vary depending on the nature of the receivable. Types of receivables covered by this policy include but are not limited to: business license tax, transient occupancy tax; sewer utility billings; regulatory and development impact fees; fees for services; recovery for damage to City property; fines and penalties; and legal judgments. Accounts receivable should generally be written-off during the fiscal year in which an account is determined to be uncollectible. Subsequent collection of an account previously written-off will be treated as new revenue in the appropriate fund. 1. Designation of an Account as Uncollectible An account will be considered uncollectible after the appropriate collection procedures have been followed if it meets one or more of the following criteria: 2017-05-23 Agenda Packet Page 185 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: UNCOLLECTIBLE ACCOUNTS RECEIVABLE WRITE-OFF POLICY POLICY NUMBER EFFECTIVE DATE PAGE 05/23/2017 2 of 4 ADOPTED BY: (Resolution No.) DATED: 5/23/2017 AMENDED BY: Resolution No. (date of resolution) The debt is disputed and the City has insufficient documentation to pursue collection efforts; The cost of further collection efforts will exceed the estimated recovery amount; The amount is under $20 and remains unpaid after one year; The account remains unpaid after the lesser of four years or the applicable period for commencement of a recovery action (statute of limitations); The debtor cannot be located, nor any of the debtor’s assets; The debtor has no assets and there is no expectation they will have any in the future; The debtor has died and there is no known estate or guarantor; The debtor is a company which is no longer in business; The debt is discharged through legal action (bankruptcy or court judgment). 2. Preparation of Request for Write-Off of Accounts Receivable At least annually, Finance Department staff will identify any accounts receivable that meet the criteria for designation as an uncollectible account. A request for write-off of accounts receivable will be prepared and submitted to the Finance Treasury Manager. The request for write-off of accounts receivable must include an itemized list of the uncollectible accounts to be written off specifying the following: 2017-05-23 Agenda Packet Page 186 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: UNCOLLECTIBLE ACCOUNTS RECEIVABLE WRITE-OFF POLICY POLICY NUMBER EFFECTIVE DATE PAGE 05/23/2017 3 of 4 ADOPTED BY: (Resolution No.) DATED: 5/23/2017 AMENDED BY: Resolution No. (date of resolution) Account number of the receivable in the City’s accounting system; Debtor name; Account balance; Due date; Brief description of receivable type; and Criteria under which the account was deemed uncollectible. For each uncollectible account, documentation must be attached to the request to support the uncollectible account designation and substantiate that collection procedures have been followed and due diligence exercised in the collection efforts. Due diligence documentation could include: Invoices, reminder letters, or collection letters (and any documentation that are returned as undeliverable, no known forwarding address, etc.); Information from the California Department of Corporations; Referral to the City’s collection agency; Bankruptcy claim and any related plan or discharge; Judgment awarded by a court or settlement agreement; Notice of discontinuation of services. III. APPROVAL AUTHORITY: Upon receipt of a request for write-off of accounts receivable, the Finance Treasury Manager will review the request to ensure that it is complete and that all necessary due diligence documentation has been attached. Once the review has been completed, the qualified accounts to be written-off will be presented to the appropriate authorizing 2017-05-23 Agenda Packet Page 187 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: UNCOLLECTIBLE ACCOUNTS RECEIVABLE WRITE-OFF POLICY POLICY NUMBER EFFECTIVE DATE PAGE 05/23/2017 4 of 4 ADOPTED BY: (Resolution No.) DATED: 5/23/2017 AMENDED BY: Resolution No. (date of resolution) official for approval: The Director of Finance is authorized to approve the write-off of accounts with an outstanding balance due of up to $25,000; The City Manager is authorized to approve the write-off of accounts with an outstanding balance in excess of $25,000 and up to $100,000; Write-off of accounts with an outstanding balance due in excess of $100,000 must be approved by action of the City Council. FORMS Attachment 1: Uncollectible Accounts Receivable Debt Write-Off Request Form 2017-05-23 Agenda Packet Page 188 Acct Number Debtor Name Account Balance Due Date Receivable TypeReason for Debt Write‐OffPreparer:____________________________________Approver:________________________________________Name DateName DateReviewer:____________________________________Name DateUNCOLLECTIBLE ACCOUNTS RECEIVABLE DEBT WRITE‐OFF REQUEST2017-05-23 Agenda Packet Page 189 City of Chula Vista Staff Report File#:16-0466, Item#: 8. CONSIDERATION OF WAIVING IRREGULARITIES IN THE BID RECEIVED FOR THE “MANHOLE REHABILITATION PROGRAM, FISCAL YEAR 2015/2016 (SW297)” PROJECT PER CITY CHARTER SECTION 1009 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS; WAIVING MINOR BID IRREGULARITIES; AWARDING A CONTRACT FOR THE “MANHOLE REHABILITATION PROGRAM, FISCAL YEAR 2015/2016 (CIP# SW297)” PROJECT TO SANCON ENGINEERING, INC. IN THE AMOUNT OF $226,067.07; APPROPRIATING $130,000 FROM THE AVAILABLE BALANCE OF THE SEWER FACILITY REPLACEMENT FUND TO CAPITAL IMPROVEMENT PROJECT SW297; WAIVING CITY COUNCIL POLICY NO. 574-01; AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE ALL CHANGE ORDERS (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council conduct the public hearing and adopt the resolution. SUMMARY On April 5, 2017, the Director of Public Works received two (2) sealed bids for “Manhole Rehabilitation Program, Fiscal Year 2015/16 (CIP No. SW297)” project at various locations. The project consists of the rehabilitation and repair of various sewer mains and manholes and the replacement of various sewer manholes citywide. ENVIRONMENTAL REVIEW Environmental Notice The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines. Environmental Determination The Director of Development Services 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 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is required. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION Based on field investigations, a number of sewer manholes have been identified by the Public Works Department as requiring rehabilitation. The general scope of the “Manhole Rehabilitation Program Fiscal Year 2015/16 (CIP No. SW297)” project consists of installing epoxy liners in existing sewer City of Chula Vista Printed on 5/18/2017Page 1 of 4 powered by Legistar™2017-05-23 Agenda Packet Page 190 File#:16-0466, Item#: 8. Fiscal Year 2015/16 (CIP No. SW297)” project consists of installing epoxy liners in existing sewer manholes, the installation of epoxy liners in sewer mains, and the removal and replacement of sewer manholes. The locations of work to be done are identified in the attached project Location Summary Map (Attachment 1). On April 5, 2017, the Director of Public Works received two (2) sealed bids as follows: The apparent low bid by Sancon Engineering, Inc. of $226,067.07 is $36,067.07 (approximately 19%) above the Engineer's estimate of $190,000. The Sancon Engineering, Inc. original sealed bid proposal contained minor irregularities by not including a signed Affidavit form and by submitting a bid with a minor mathematical error. The Affidavit form was received a few days after bids were opened. The signed Affidavit clearly demonstrates that the form was made and signed on April 5, 2017, along with the submitted bid proposal documents, as evidenced under the official seal of a California Notary Public. The original bid proposal listed a grand total of $226,068.57. After updating the total due to a minor mathematical error, the new grand total is $226,067.07. Corrections to the bid total did not change the outcome and ranking of the bids (see Attachment 2). Given that there is no specific provision under Section 1009 of the Chula Vista Charter requiring the submission of an Affidavit, and given that the mathematical error resulted in a minor change in the bid proposal grand total, staff requests for these minor irregularities to be waived by the City Council. Sancon Engineering, Inc. is currently an active licensed Class “A”, General Engineering Contractor (License No. 731797) and has performed similar work in the region with satisfactory performance. Staff has reviewed Sancon Engineering, Inc. references and bid package, and determined them to be a responsible and responsive bidder; therefore, staff recommends awarding SW297 to Sancon Engineering, Inc. The proposed resolution would also 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”), 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 $18,824. Approval of the resolution would increase the Director of Public Works authority to approve change orders, without City Council approval as necessary, up to contingency amount of $34,000 (approximately 15% of the contract), an increase of $15,086 over Policy No. 574- 01. Increasing the Director’s authority will allow the project to continue without delay should unforeseen circumstances arise resulting in increased project costs during the course of construction, as well as make adjustments to bid item quantities. Unforeseen conditions include such items as City of Chula Vista Printed on 5/18/2017Page 2 of 4 powered by Legistar™2017-05-23 Agenda Packet Page 191 File#:16-0466, Item#: 8. as well as make adjustments to bid item quantities. Unforeseen conditions include such items as utility conflicts, hazardous materials, unexpected underground conflicts, etc. If the contingency funds are not used, they will be returned to the project fund balance. 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 3 is a copy of the Contractor’s Disclosure Statement. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the properties which are the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100,et seq.). 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 Manhole Rehabilitation Program Fiscal Year 2015/16 (CIP No. SW297) project supports the Strong and Secure Neighborhoods Strategic Goal as it maintains public infrastructure and promotes sustainable infrastructure vital to the quality of life for residents. CURRENT YEAR FISCAL IMPACT Approval of the resolution will award a contract for the Manhole Rehabilitation Program Fiscal Year 2015/16 Project and appropriate $130,000 from Sewer Facility Replacement Funds to SW297. Sufficient Sewer Facility Replacement Funds are available for said appropriation. The table below summarizes the anticipated project costs and the funding sources: City of Chula Vista Printed on 5/18/2017Page 3 of 4 powered by Legistar™2017-05-23 Agenda Packet Page 192 File#:16-0466, Item#: 8. ONGOING FISCAL IMPACT Upon completion of the project, the improvements will require only routine maintenance of sewer facilities. ATTACHMENTS 1. Project Location Map 2. Bid Price Adjustment Letter from Sancon Engineering, Inc. 3. Contractor’s Disclosure Statement from Sancon Engineering, Inc. Staff Contact: Rosina Constanza, Assistant Civil Engineer City of Chula Vista Printed on 5/18/2017Page 4 of 4 powered by Legistar™2017-05-23 Agenda Packet Page 193 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS; WAIVING MINOR BID IRREGULARITIES; AWARDING A CONTRACT FOR THE “MANHOLE REHABILITATION PROGRAM, FISCAL YEAR 2015/2016 (CIP# SW297)” PROJECT TO SANCON ENGINEERING, INC. IN THE AMOUNT OF $226,067.07; APPROPRIATING $130,000 FROM THE AVAILABLE BALANCE OF THE SEWER FACILITY REPLACEMENT FUND TO CAPITAL IMPROVEMENT PROJECT SW297; WAIVING CITY COUNCIL POLICY NO. 574-01; AND AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO EXECUTE ALL CHANGE ORDERS WHEREAS, the purpose of the project is to rehabilitation the City’s sewer system by installing epoxy liners in existing sewer manholes, removing and replacing sewer manholes, and by lining existing sewer main pipes; and WHEREAS, the Director of Development Services 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 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the State CEQA Guidelines. Thus, no further environmental review is required; and WHEREAS, On April 5, 2017, the Director of Public Works received two (2) sealed bids for the “Manhole Rehabilitation Program, Fiscal Year 2015/16 (CIP No. SW297)” project at various locations; and WHEREAS, the following bids were received: CONTRACTOR BASE BID AMOUNT 1 Sancon Engineering, Inc. – Huntington Beach, CA $226,068.57* 2 SoCal Pacific Construction Corp. dba National Coating & Lining Co. –Murrieta, CA $345,582.00 WHEREAS, the lowest bid contained minor bid irregularities, in that a signed Affidavit form was not incorporated into the bid submittal and the bid contained a minor mathematical error; and WHEREAS, though the Affidavit was not included, staff determined that this irregularity was minor, as the bidder submitted the form a few days after bids were opened and demonstrated that the form was signed with the original bid as evidenced under the official seal of a California Notary Public; and 2017-05-23 Agenda Packet Page 194 WHEREAS, the minor mathematical error did not change the outcome and ranking order of the bids: and WHEREAS, Sancon Engineering, Inc. is currently an active licensed Class “A”, General Engineering Contractor (License No. 731797) and has performed similar work in the region with satisfactory performance; and WHEREAS, all companies associated with this contract are registered as public works contractors with the California Department of Industrial Relations (DIR); and WHEREAS, in accordance with the provisions of Section 1773 of the Labor Code of the State of California, the contractor and its subcontractors are required by bid specifications to pay prevailing wages to persons employed by them for work under this contract; and WHEREAS, in the City Council Policy No. 574-01, the maximum aggregated contract increase that may be approved by the Director of Public Works for the SW297 project is $18,824; and WHEREAS, approval of the resolution would increase the Director of Public Works authority to approve change orders, without City Council approval as necessary, up to contingency amount of $34,000 (approximately 15% of the contract); and WHEREAS, the breakdown of construction costs are as follows: FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount $226,067.07 B. Contingency (Approximately 15% of contract)$34,000.00 C. Construction Inspection $34,000.00 D. Material Testing $14,301.93 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $308,369.00 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby accept bids, waive minor bid irregularities, and award a contract for the “Manhole Rehabilitation Program, Fiscal Year 2015/16 (CIP No. SW297)” project to Sancon Engineering, Inc. in the amount of $226,067.07; and appropriate $130,000 from the Sewer Facility Replacement Fund to CIP SW297; and BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that City Council Policy 574-01 is waived and the expenditure of all contingency funds be authorized in an amount not to exceed $34,000. 2017-05-23 Agenda Packet Page 195 Resolution No. Page 3 Presented by Approved as to form by Richard A. Hopkins Glen R. Googins Director of Public Works City Attorney 2017-05-23 Agenda Packet Page 196 1 2 3 4 5 67 8 9 10Prepared By: TWeinmanProjection Information: Name: NAD 1983 StatePlane California VI FIPS 0406 Feet Datum: North American 1983File: Q:\Engineer\AllProjects\SW\SW297MHRehabFY15-16\ Plats\CIP2016MHsOverall-SW297.mxdE 0 1,880 FeetCIP 2016 MHs Overall-SW297 8/26/2016 Legend MH Maps Freeways CityLimit J ST FLOWER ST EASTLAKE PWLA MED IA RD E NAPLES S T H ST BAY BLPALOMAR S T I-805 SR-125 I-5 2017-05-23 Agenda Packet Page 197 SANCON ENGINEERING, INC. GENERAL ENGINEERING CONTRACTOR Tel: (714) 891-2323 STATE CONTRACTORS LICENSE #731797 Fax: (714) 891-2524 April 10, 2017 Rosina Constanza City of Chula Vista Department of Public Works, Engineering 276 Fourth Avenue, Chula Vista, CA 91910 Subject: Bid Price Adjustment Dear Rosina, As discussed during our phone conversation. I acknowledge the bid price error for bid item number eight and request to change the total cost for the item from $2362.50 to the correct cost of 2361.00. Also the adjustment of item 8 changes the grand total for the bid from $226,068.57 to the new grand total of $226,067.07. I have review the prices and agree with the changes. Thanks you, Matt Sciborski Project Manager, Sancon Engineering Inc. 2017-05-23 Agenda Packet Page 198 2017-05-23 Agenda Packet Page 199 2017-05-23 Agenda Packet Page 200 City of Chula Vista Staff Report File#:17-0158, Item#: 9. CONSIDERATION OF THE ADOPTION OF A SMALL BUSINESS LOAN PROGRAM FOR BUSINESSES ON THIRD AVENUE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CREATING THE CHULA VISTA THIRD AVENUE SMALL BUSINESS REVOLVING LOAN FUND PROGRAM RECOMMENDED ACTION Council adopt the resolution. SUMMARY The City of Chula Vista participated with the cities of San Diego and National City in the San Diego Regional Enterprise Zone (EZ) Program. The City of San Diego was the administrator for the program on behalf of all three cities. With the repeal and wind down of the program completed, the City of San Diego remitted a proportional share of the remaining program revenues to the partner agencies. On January 10, 2017 the City Council amended the Economic Development Department Budget by appropriating $200,000 from the EZ funds for business retention and attraction activities. Staff is recommending the establishment of the Third Avenue Small Business Loan Program utilizing these funds. ENVIRONMENTAL REVIEW Environmental Notice The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Determination The Director of Development Services 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 of the State CEQA Guidelines because it will not result in a 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 environmental review is required. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION The California Enterprise Zone program provided state sales and use tax credits, business expense deductions, and employee hiring tax credits to attract private sector investment to the enterprise zone. The City of San Diego was the program administrator for the EZ Program on behalf of the cities of Chula Vista, San Diego, and National City. Businesses seeking to utilize the employee hiring tax City of Chula Vista Printed on 5/18/2017Page 1 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 201 File#:17-0158, Item#: 9. of Chula Vista, San Diego, and National City. Businesses seeking to utilize the employee hiring tax credit submitted a Hiring Credit Voucher Certificate application to the City of San Diego. If a business qualified for the tax credits, a voucher was issued to the business for each employee. The voucher was required for the business to utilize the tax credit. Each business was required to pay an application fee for the voucher which paid for the administration of the program. Although State law terminated the Enterprise Zone program in 2013, the law also authorized local Enterprise Zone agencies to continue accepting applications for hiring credit voucher certifications during 2014. Due in large part to early termination of the State Enterprise Zone Program, and anticipation by regional businesses and the tax professional community of the approaching December 31, 2014 voucher issuance deadline, the City of San Diego received a very high volume of certification applications to process during the last 18 months of the program. As a result, the City San Diego ended the program with a fund balance of approximately $3,500,000. On January 13, 2016, the San Diego City Council approved disbursement of the funds to former EZ partner agencies in an amount equal to the percentage of Hiring Credit Voucher Certificate applications received from qualifying businesses in those jurisdictions. Based upon this formula, the City of San Diego remitted $486,991.16 to the City of Chula Vista. On January 10, 2017, the City Council amended the Economic Development Department Budget by appropriating $200,000 from the EZ Program for business retention and attraction activities. More specifically, the Economic Development staff recommended utilizing the $200,000 to establish a revolving loan account to assist in attracting businesses on Third Avenue and to attract and retain businesses along Main Street. The City Council directed staff to return at a later date with details on the program. Initially, staff looked at utilizing the available funding both on Third Avenue and along Main Street. Staff was working with businesses along Main Street to address storm water mitigation costs. After reaching out to other manufacturing businesses staff determined the storm water issues impacted only few businesses so a better use of the limited funding would be to focus on the Third Avenue area. In working with TAVA representatives, business and property owners the consensus was to develop a program that would help attract new restaurants/entertainment tenants/owners. The biggest challenge facing a new or expanding restaurants/entertainment business is the cost for fire sprinklers, grease traps, sewer fees and tenant improvements including ADA improvements and cooking hoods. The Third Avenue Revolving Loan Program has been developed to assist property owners make these types of permanent improvements to their properties. These improvements will stay with the property which will serve to assist current businesses and be there to facilitate future business attraction should the existing tenant(s) leave. The program will not be utilized for tenant specific improvements like signage, awnings, windows and painting. The Loan Program will be for a maximum of $40,000 at 2% interest for a period of 5 years. The loan will be made to the property owner and secured against the property. Payments will be made directly to the licensed contractor upon completion of the work. Staff initially anticipates making 5-6 loans, and make additional future loans as payments are made to the City. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found that Mayor Casillas SalasCity of Chula Vista Printed on 5/18/2017Page 2 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 202 File#:17-0158, Item#: 9. Staff has reviewed the property holdings of the City Council and has found that Mayor Casillas Salas has real property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and 18702.2(a)(11), this item presents a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.) for the above-identified member. 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 Third Avenue Loan Program furthers the Economic Vitality initiative 2.1.2 to “foster opportunities for investment in Western Chula Vista” by removing impediments for development projects in the subject area, accelerating the completion of planned and future developments. CURRENT YEAR FISCAL IMPACT As stated above, on January 10, 2017, the City Council appropriated $200,000 to the Economic Development Budget from the unexpended EZ funds to be used for business retention and attraction activities. Therefore, there are no current year fiscal impacts. ONGOING FISCAL IMPACT The loan program will be for a maximum of $40,000, a five year term and a 2% interest rate. Staff time for the loan program will be covered in the department budget and any costs of the program will be recovered through the loan processing fee and the interest earned on the program. Therefore, there will be no ongoing fiscal impact due to the implementation of the loan program. ATTACHMENTS 1. Letter of support Staff Contact: Craig Ruiz, Senior Economic Development Specialist City of Chula Vista Printed on 5/18/2017Page 3 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 203 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA CREATING THE CHULA VISTA THIRD AVENUE SMALL BUSINESS REVOLVING LOAN FUND PROGRAM WHEREAS, the City of Chula Vista previously participated with the cities of San Diego and National City in the San Diego Regional Enterprise Zone (SDREZ) Program; and WHEREAS, the SDREZ was administered by the City of San Diego on behalf of the partner cities; and WHEREAS, the administrative costs of the SDREZ were paid for in part through administrative fees paid by businesses receiving Enterprise Zone Tax Credit Vouchers, and WHEREAS, the Enterprise Zone Program was terminated by the State of California on January 1, 2014; and WHEREAS, due in large part to early termination of the State Enterprise Zone Program, and anticipation by regional businesses and the tax professional community of the approaching December 31, 2014 voucher issuance deadline, the City of San Diego received a very high volume of certification applications to process during the last 18 months of the program; and WHEREAS, as a result of the increase in Enterprise Zone Tax Credit Voucher applications, the City San Diego ended the program with a fund balance of approximately $3,500,000; WHEREAS, the City San Diego approved disbursement of the fund balance to former SDREZ partner agencies in an amount equal to the percentage of Hiring Credit Voucher Certificate applications received from qualifying businesses in those jurisdictions; and WHEREAS, based upon the formula for disbursing funds, the City of San Diego remitted $486,991.16 to the City of Chula Vista; and WHEREAS, on January 10, 2017, the Chula Vista City Council amended the Economic Development Department’s budget and appropriated $200,000 utilizing former Enterprise Zone funds for business retention and attraction activities; and WHEREAS, City staff recommends that the funds be used to establish the Third Avenue Small Business Revolving Loan Fund Program to provide loans to owners of property along Third Avenue, between E Street and H Street, in amounts up to $40,000, for five year periods at 2% interest, to fund certain building improvements, including: fire sprinklers, grease traps, sewer fees and improvements, kitchen hoods, and ADA improvements.. 2017-05-23 Agenda Packet Page 204 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the creation of the Third Avenue Small Business Revolving Loan Fund Program, and authorizes and directs the City Manager to take such additional actions as may be necessary or appropriate to implement the Program, with all associated documents subject to review and approval by the City Attorney. Presented by Approved as to form by Eric Crockett Glen R. Googins Economic Development Director City Attorney 2017-05-23 Agenda Packet Page 205 April 28, 2017 THIRD AVENUE VILLAGE ASSOCIATION 353 Third Avenue Chula Vista, CA 91910 (619) 422-1982 Phone (619) 422-1452 Facsimile www.th h'davemlevilla e.conl 2017 Board of Directors Kathy Sparks - President Randy Bellamy - Vice President Tom Money - Treasurer Ian Troller - Secretary Steve Bandoian Alan Cassel Eric Crockett Doug Kerner Lesley Loren Hehner Rodriguez Karen Roque EXECUTIVE DIRECTOR Luanne Hulsizer AD ISTRATIVE ASSISTANT Beatriz Merced EVENT COORDINATOR Kelly Lannom Mayor Casillas Salas City Councihnembers City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Subject: City of Chula Vista Proposed Small Business Loan Program for the Third Avenue Village PBID Dear Mayor Casillas Salas and Councihnembers: On behalf of the Third Avenue Village Association, Board of Directors, representing the designated property based business improvement district, it is my pleasure to express their unaninaous support in favor of the Small Business Loan Program designed for Third Avenue property owners by the City of Chula Vista's Economic Development Department. TAVA supports the Economic Development Department in its efforts to provide low interest loans for property owners through the program's mission to support improvements to the appearance and functionality of the properties on Third Avenue within the PBID. The Small Business Loan Program is a substantial approach that will help property owners attract new and upcoming business tenants, and hopefully to continue to support and invest in the Third Avenue's Village. Sincerely, Kathy Sparks, President 2017-05-23 Agenda Packet Page 206 City of Chula Vista Staff Report File#:17-0170, Item#: 10. PRESENTATION OF THE CITY MANAGER’S PROPOSED BUDGET FOR FISCAL YEAR 2017/2018 RESOLUTION OF THE CITY COUNCIL/SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY/ HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING THE CITY MANAGER’S PROPOSED OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR FISCAL YEAR 2017/2018 AS THEIR PROPOSED BUDGETS, RESPECTIVELY, AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING FOR FINAL CONSIDERATION AND ADOPTION OF SAME RECOMMENDED ACTION Council/Successor Agency/Housing Authority hear the presentation, and, provide comments and proposed changes. If Council is prepared to approve the budget, with or without modifications, as the City Council Proposed Budget, the City Council/Successor Agency/Housing Authority may adopt the resolution and set the time and place for a public hearing for final consideration and adoption of the budget. SUMMARY In accordance with the City Charter, the City Manager has submitted the proposed budget for the upcoming fiscal year to the City Council at least 35 days prior to the beginning of fiscal year 2017-18. Staff recommends that the Council/Successor Agency/Housing Authority hear the presentation, provide comments, and proposed changes (if any). If Council chooses to adopt the resolution, the public hearing for the final consideration and adoption of the budget will be held on June 6, 2017. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that approval of the fiscal year 2017-18 City Manager proposed budget as the City Council proposed budget 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. Environmental Notice The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. City of Chula Vista Printed on 5/18/2017Page 1 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 207 File#:17-0170, Item#: 10. Environmental Determination BOARD/COMMISSION RECOMMENDATION Not applicable. DISCUSSION In accordance with the City Charter, the City Manager has submitted the proposed budget for the upcoming fiscal year to the City Council at least 35 days prior to the beginning of fiscal year 2017-18. The City Manager has prepared and provided the proposed operating and capital improvement budgets to the City Council, and has also prepared the proposed budgets for the Successor Agency to the Redevelopment Agency and the Housing Authority, and presented them to their respective governing bodies, for fiscal year 2017-2018. The City Manager’s Proposed Budget for Fiscal Year 2017-18 has been made available on the City’s website and a hard copy of the document is available for public review at the City Clerk’s Office. Staff is now seeking City Council input on the City Manager’s Proposed Budget for fiscal year 2017- 18. Once Council has approved the City Manager’s Proposed Budget for fiscal year 2017-18 as their own, with or without changes, staff will make the City Council’s Proposed Budget for fiscal year 2017- 18 available for public review by publishing the budget on the City’s website and making a copy available at the City Clerk’s Office at least ten days prior to the public hearing. If Council chooses to adopt the resolution, the public hearing for the final consideration and adoption of the budget will be held on June 6, 2017. 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 Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council/Successor Agency/Housing Authority 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. This action supports the Operational Excellence goal by communicating the City Manager’s proposed budget for fiscal year 2016-17 in an open and transparent manner. This transparency supports City Initiative 1.3.1. - City of Chula Vista Printed on 5/18/2017Page 2 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 208 File#:17-0170, Item#: 10. “Foster public trust through an open and ethical government.” CURRENT YEAR FISCAL IMPACT There is no fiscal impact as a result of this action in the current fiscal year. ONGOING FISCAL IMPACT There is no fiscal impact as a result of the City Council accepting the City Manager’s Proposed Fiscal Year 2017-18 budget as their own. With approval of the resolution, Council will set the time and date for the final consideration and adoption of the fiscal year 2017-18 budget. Council changes to the proposed budget may result in a fiscal impact. ATTACHMENTS None Staff Contact: David Bilby, Finance Director City of Chula Vista Printed on 5/18/2017Page 3 of 3 powered by Legistar™2017-05-23 Agenda Packet Page 209 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL/SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY/ HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING THE CITY MANAGER’S PROPOSED OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR FISCAL YEAR 2017-18 AS THEIR PROPOSED BUDGETS, RESPECTIVELY, AND SETTING THE TIME AND PLACE FOR A PUBLIC HEARING FOR FINAL CONSIDERATION AND ADOPTION OF SAME WHEREAS, the City Charter requires that the City Manager submit the proposed budget for the upcoming fiscal year to the City Council at least 35 days prior to the beginning of such fiscal year; and WHEREAS, the City Manager has prepared and provided the proposed operating and capital improvement budgets to the City Council, and has also prepared the proposed budgets for the Successor Agency to the Redevelopment Agency and the Housing Authority, and presented them to their respective governing bodies, for fiscal year 2017-2018; and WHEREAS, the City Council, Successor Agency to the Redevelopment Agency and Housing Authority have received the City Manager’s budget report and the respective proposed budgets and have approved the budgets as their proposed budgets; and WHEREAS, a public hearing shall be held prior to adoption of the proposed budgets and the proposed budgets, and notice of the proposed hearing, shall be published at least ten days prior to the public hearing. NOW, THEREFORE, BE IT RESOLVED by the City Council/Successor Agency to the Redevelopment Agency/Housing Authority of the City of Chula Vista that the City Manager’s budget report for fiscal year 2017-18 is approved, and the City Manager’s proposed operating and capital improvement budgets for fiscal year 2017-18 are approved as their respective proposed budgets. BE IT FURTHER RESOLVED that a public hearing shall be held on the proposed budgets on June 6, 2017, and that the City Clerk is directed to publish the proposed budgets, in the form presented, for public inspection, and provide notice of the public hearing, at least ten days prior to the hearing date. 2017-05-23 Agenda Packet Page 210 Presented by Approved as to form by David Bilby Glen R. Googins Director of Finance/Treasurer City Attorney 2017-05-23 Agenda Packet Page 211 PROPOSED BUDGET 2017-18FISCAL YEAR 2017-05-23 Agenda Packet Page 212 2017-05-23 Agenda Packet Page 213 PROPOSED BUDGET FISCAL YEAR 2017‐2018 MARY CASILLAS SALAS MAYOR PATRICIA AGUILAR MIKE DIAZ JOHN MCCANN STEPHEN PADILLA COUNCILMEMBER COUNCILMEMBER COUNCILMEMBER COUNCILMEMBER GARY HALBERT City Manager DONNA NORRIS City Clerk GLEN R. GOOGINS City Attorney i2017-05-23 Agenda Packet Page 214 ii2017-05-23 Agenda Packet Page 215 FY2018 City of Chula Vista Proposed Budget ADMINISTRATION Gary Halbert City Manager Kelley Bacon Deputy City Manager Maria Kachadoorian Deputy City Manager DIRECTORS Kelly Broughton Director of Development Services Eric Crockett Director of Economic Development William Valle Director of Engineering and Capital Projects Jim Geering Fire Chief David Bilby Director of Finance Courtney Chase Director of Human Resources Edward Chew Director of Information Technology Services Betty Waznis Director of Library Roxana Kennedy Chief of Police Richard Hopkins Director of Public Works Kristi McClure Huckaby Director of Recreation iii2017-05-23 Agenda Packet Page 216 iv2017-05-23 Agenda Packet Page 217 FY2018 City of Chula Vista Proposed Budget Organizational Chart CITIZENS OF CHULA VISTA Mayor City Council Citizen Advisory Commissions Citizen Advisory Boards City Manager City Attorney City Clerk Deputy City Manager Assistant City Manager Police Human Resources Library Public Works Fire Info & Tech Services Recreation Engineering & Capital Projects Animal Care Facility Development Services Successor Agency to RDA Finance Economic Development Communications Housing Authority v2017-05-23 Agenda Packet Page 218 vi2017-05-23 Agenda Packet Page 219 FY2018 City of Chula Vista Proposed Budget Chula Vista at a Glance About Chula Vista The history of the area known as Chula Vista, can be traced back millions of years through prehistoric fossils of both land and sea types. Around 3000 B.C., Yuman‐ speaking people began moving into the area. Many of the Native American Indians in San Diego today are descendants of the Kumeyaay tribe that roamed here for hundreds of years. Today’s City of Chula Vista is located at the center of one of the richest cultural, economic and environmentally diverse zones in the United States. It is the second‐largest City in San Diego County with a population of approximately 267,000. Chula Vista boasts more than 50 square miles of coastal landscape, canyons, rolling hills, mountains, quality parks, and miles of trails. Chula Vista is a leader in conservation and renewable energy, has outstanding public schools, and has been named one of the top safest cities in the country. Chula Vista means “beautiful view” and there is more to see and do here than you can imagine! Great year‐ round weather, miles of trails, coastline, mountains and open space beckon runners, hikers, cyclists, birders, and outdoors enthusiasts from the bay to lakes. The bayfront with the Sweetwater Marsh National Wildlife Refuge and the Living Coast Discovery Center showcase the unique animals and plants of Southern California. The Chula Vista Marina & Yacht Club awaits kayakers and boaters. The Bayshore Bikeway provides a two‐ wheeled tour of more wonders on San Diego Bay. Shopping, dining, and entertainment abound with two major malls and a historic downtown district. Otay Ranch Town Center is an exciting outdoor shopping, dining and entertainment destination. Chula Vista Center in the downtown area boasts major retailers, dining, movie theaters, and more than 100 fine specialty shops. And, Third Avenue Village, billed as the cultural center of the city, features historic buildings, unique shops, a weekly farmers market, landmark restaurants, and seasonal outdoor music concerts. It’s also home to a brewery and tasting rooms. Established neighborhoods, contemporary communities, start‐up firms, corporations, nationally recognized entertainment venues, the nation’s only warm weather Olympic Training Center, 60 parks, an award winning nature center and a historic downtown all contribute to Chula Vista’s attraction for both families and businesses. For more information regarding the City of Chula Vista, please visit our website at www.chulavistaca.gov. vii2017-05-23 Agenda Packet Page 220 FY2018 City of Chula Vista Proposed Budget General Information Incorporated………………………………..………………….1911 Government……………..………………….Council/Manager Bond Rating…………….…………………………………………AA‐ Population by Ethnic Group Source: San Diego Association of Governments, Current Estimates Educational Attainment 1 1Based on population 25 years and over. Source: U.S. Census Bureau, 2015 American Community Survey Population Population….………………………..………….………….267,917 Median Age…………………..……………..….……………… 34.2 Source: Population data, California Department of Finance. Median Age, San Diego Association of Governments estimates. Chula Vista Population Growth Note: This data represents calendar year population numbers. *2017 population numbers are projections. Source: California Department of Finance and City of Chula Vista staff Elementary Schools Chula Vista Elementary School District FY2016‐17 Data www.cvesd.org (619) 425‐9600 Number of Schools 1...……………………..………………...45 Projected Enrollment……………………………………29,200 1Includes 5 dependent and 2 independent charter schools. Secondary Schools Sweetwater Union High School District FY2016‐17 Data www.sweetwaterschools.org (619) 691‐5500 Number of Schools1....…………………………………….….32 Projected Enrollment……………………………………42,000 1Includes middle schools, high schools, adult schools, and alternative education sites. Hispanic, 56% White, 22% Black, 6% Other, 3% Asian/ Pacific Islander, 13% Less than 9th grade 8.5%9th to 12th grade, no diploma 9.3% High school graduate 18.8% Some college, no degree 24.8% Associate's degree 8.9% Bachelor's degree 21.3% Graduate or professional degree 8.5% 0 50 100 150 200 250 300 030405060708091011121314151617*Thousandsviii2017-05-23 Agenda Packet Page 221 FY2018 City of Chula Vista Proposed Budget Housing Housing Units……………………………..……………..…83,406 Persons per Household…………………………………...3.30 Vacancy Rate………….…………………………………….…3.2% Source: California Department of Finance Household Income Source: San Diego Association of Governments, Current Estimates Housing Type Single Family……………………………..………….……….53,535 Multiple Family…………………………………….….…….25,806 Mobile Homes……….…………………………….….…..….4,065 Source: California Department of Finance Public Safety Fire Uniform Strength.……………..………….…..………108 Fire Stations………………………………………………...……….9 Emergency Calls to Fire Department 1 ……..…19,892 Police Uniform Strength2……………..……….….………232 Citizen Initiated Calls for Service ………..…....…67,048 1Calls for service data is for calendar year 2016. 2Police uniform strength does not include 12 frozen positions. Source: City of Chula Vista Staff Community Facilities Acres of Developed Parks 1.……..……….…………534.66 Total Number of Parks……………………..………..……….61 Libraries.……………..………………………………………………..3 Recreation Facilities……….……..…………………………….11 1 Actual City Ownership Park Acreage Source: City of Chula Vista staff Construction Permits Source: City of Chula Vista staff Note: FY17 data is as of 04/26/17 11% 14% 13% 11%10% 15% 10% 6% 5%3% < $15,000 $15,000 ‐ $29,999 $30,000 ‐ $44,999 $45,000 ‐ $59,999 $60,000 ‐ $74,999 $75,000 ‐ $99,999 $100,000 ‐ $124,999 $125,000 ‐ $149,000 $150,000 ‐ $199,999 >= $200,000 ‐ 1,000 2,000 3,000 4,000 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Multi‐Family Single Family ix2017-05-23 Agenda Packet Page 222 x2017-05-23 Agenda Packet Page 223 FY2018 City of Chula Vista Proposed Budget Table of Contents BUDGET MESSAGE 1 Letter from the City Manager 3 Budget Process 5 Economic Overview 7 All Funds Summary 11 Summary of Staffing Changes 19 GENERAL FUND SUMMARY 29 General Fund Expenditure Summary 31 General Fund Revenue Summary 43 General Fund Net Cost 53 Department Summary Reports 55 GENERAL FUND LONG‐TERM FINANCIAL PLAN 75 DEVELOPMENT SERVICES FUND 85 SUCCESSOR AGENCY AND HOUSING FUNDS 91 Successor Agency Funds 93 Housing Authority Funds 101 SEWER FUNDS 105 FLEET FUND 117 CAPITAL PROJECT FUNDS 125 DEBT SERVICE FUNDS 137 OTHER FUNDS 145 xi2017-05-23 Agenda Packet Page 224 FY2018 City of Chula Vista Proposed Budget CAPITAL IMPROVEMENT PROGRAM (CIP) 177 Capital Improvement Program Summary 179 CIP Revenue Summary 181 CIP Expenditure Summary 187 Capital Improvement Projects Summary 195 Five‐Year CIP Project Summary Schedule 199 MEASURE P SUMMARY 201 SUMMARY TABLES 209 Fund Appropriations by Department and Expenditure Category 211 Schedule of Revenues 217 Fund Balance Projections 231 Schedule of Interfund Transfers 241 Authorized Positions by Department 253 APPENDIX 267 Fiscal Policies 269 Investment Policies 275 Debt Administration 283 GANN Appropriations Limit 287 Legal Debt Margin 289 Accounting Systems and Budgetary Control 291 List of Acronyms 293 Glossary 297 xii2017-05-23 Agenda Packet Page 225 FY2018 City of Chula Vista Proposed Budget Document Guide The budget document is organized in a manner to facilitate a general understanding of the City’s fiscal status, to present management’s assessment of major issues and, finally, to present the plan for allocating resources to address those issues during the coming fiscal year. The budget document is organized as follows: Budget Message, General Fund Summary, Other Funds, Program Summary, Capital Improvement Program, Summary Tables, and Appendix. BUDGET MESSAGE This section provides an executive summary of the City’s all funds budget, summarizes the region’s economic outlook, and highlights significant budgetary changes for fiscal year 2017‐18. It also highlights the sources and uses of funds and provides information on the General Fund reserves. A summary of staffing changes is provided at the end of this section. GENERAL FUND The General Fund budget funds the day‐to‐day operations of most city services. This section of the document provides an overview of General Fund revenues and expenditures, staffing changes, and budgetary trends. This section is followed by Department Summary reports that include departmental mission statements and operating budgets for each General Fund department. OTHER FUNDS In order to facilitate understanding of the different funding sources, this portion of the document has been organized into the following categories: Development Services Fund, Redevelopment, Successor Agency to the Redevelopment Agency, and Housing funds, Sewer Funds, Fleet Fund, Capital Project Funds, Debt Service Funds, and Other Funds. Detailed descriptions, funding and staffing levels are provided for each fund. Due to various legal restrictions these funds are limited in their uses and generally cannot be applied to fund day‐to‐ day operations such as Police and Fire services. CAPITAL IMPROVEMENT PROGRAM This section provides an overview of the City’s Capital Improvement Program for the coming fiscal year. The Capital Improvement Program accounts for the acquisition, rehabilitation, or construction of major capital facilities, infrastructure, or equipment. More detailed information about each capital project, including project area maps, project status, expenditures to date, current year appropriations, and future funding, can be found in the Capital Improvement Program budget document. MEASURE P SUMMARY The City established a separate fund to track and account for income and expenses related to the voter approved one‐half cent Sales Tax. The Measure P Fund Summary provides a summary of the allocation for the coming fiscal year. SUMMARY TABLES AND APPENDIX The summary tables provide a quick way to view budget allocations by department (or fund) and expenditure category, revenues by fund and type, projected fund balances by fund, and Council authorized positions by department. The appendix contains supplementary information on a variety of topics including an overview of the budget development process along with relevant timelines and milestones, fiscal and investment policies, debt administration, and a glossary of finance and budget terms. xiii2017-05-23 Agenda Packet Page 226 xiv2017-05-23 Agenda Packet Page 227 xv2017-05-23 Agenda Packet Page 228 xvi2017-05-23 Agenda Packet Page 229 FY2018 City of Chula Vista Proposed Budget BUDGET MESSAGE Letter from the City Manager Budget Process Economic Overview All Funds Summary Summary of Staffing Changes 12017-05-23 Agenda Packet Page 230 22017-05-23 Agenda Packet Page 231 FY2018 City of Chula Vista Proposed Budget OFFICE OF THE CITY MANAGER May 23, 2017 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL I am pleased to submit for your consideration the operating budget and capital improvement program for fiscal year 2017‐18. The combined budget for all City funds totals $373.0 million. This amount includes a General Fund operating budget of $166.6 million and a Capital Improvement Program (CIP) budget of $73.9 million. The General Fund presented in this document is balanced and includes funding for programs supported by the City Council in prior fiscal years. Despite a financial outlook that is more strained than it has been in recent years, the City continues to see revenue growth, infrastructure improvements, and growth in commercial and residential development. Positive revenue growth is being outpaced by pension and health care cost increases and will continue to be a challenge in the coming years. The City will continue to implement efficiency measures to help mitigate the impacts of the cost increases. The City continues to implement new ways to maximize limited resources to deliver high quality services to our community. In preparing the General Fund budget for fiscal year 2017‐18, staff focused on the following budget development goals: Develop a balanced budget using fiscally responsible financial practices Maintain service levels and operating hours as reflected in the City Council’s 2016‐17 adopted budget Fund the highest level of municipal services possible based on available resources Make significant progress on key programs and projects in support of the City’s Strategic Plan Continue growing Chula Vista’s financial base Continue to improve efficiency and effectiveness of government services through the implementation of Continuous Improvement principles The City’s General Fund reflects modest growth in most major revenue sources. In preparing the operating budget, significant increases in pension and health care expenditures outweighed anticipated revenue growth which resulted in a projected budget deficit. As a result, departments were asked to identify cost saving measures or program revenue increases to balance the budget. Those measures have resulted in the balanced budget being presented to you for your consideration. Budget Highlights The following highlights some of the fiscal year 2018 City services and programs: Increase in public safety personnel and equipment o The proposed budget includes the addition of 5 Peace Officers to the Police Department o Design and construction of two fire stations o Replacement of obsolete and aging fire and police vehicles Significant increase in infrastructure funding o First full‐year of Measure P funding with $60.6 million allocated for infrastructure improvements. o Proposed Measure P budget includes funding for residential street repair, sport court repairs, renovation of Loma Verde Recreation Center, Woman’s Club, Civic Center and South Libraries, Norman Park Senior Center, parks enhancements, traffic signal system improvements and other much needed infrastructure improvement projects. o Citizens’ Oversight Committee affirmed that the proposed fiscal year budget is in 32017-05-23 Agenda Packet Page 232 FY2018 City of Chula Vista Proposed Budget compliance with the Infrastructure, Facilities and Equipment Expenditure Plan. Funding of several City initiatives: o Update of Climate Action Plan o Bayfront Development o University Planning o Smart City Strategic Action Plan o Update of Multi‐modal Bikeway & Pedestrian Master Plan Supports residential and commercial development o Increased hotel tax revenue with opening of a new hotel on the east side of Chula Vista o Development underway for more than 1,000 residential units o New 300,000‐square‐foot Class A Office complex in Millenia in process The City Manager’s Proposed Budget for Fiscal year 2017‐18 is balanced with no impact to the General Fund reserves ACKNOWLEDGEMENT Staff developed a budget for fiscal year 2017‐18 that is both responsive to community needs and continues to fund core services most important to our community. City staff is the key component in delivering high quality municipal services to our residents. I am proud of the men and women who work for the City of Chula. They work tirelessly to deliver the best services we can to our community with the resources we have. I would like to thank the City Council and Executive Team for their leadership and support. Finally, I would like to recognize the Finance Department for their exceptional work in once again preparing a balanced budget using good financial management practices. Respectfully, Gary Halbert City Manager 42017-05-23 Agenda Packet Page 233 FY2018 City of Chula Vista Proposed Budget Budget Process The City of Chula Vista’s budget is created in conjunction with City Council, City staff, and City residents. The budget process begins each year with development of the preliminary base budget and is completed with the City Council adoption of the budget in June. The fiscal year 2017‐18 budget cycle began in January 2017 with the development of a preliminary base budget by the Finance Department’s Budget and Analysis staff. The base budget accounts for the normal operating costs of the City. Through April, Finance worked with departments to refine the base budgets and incorporate departmental changes to align the budgets with current department operations. The budget process provided Departments the opportunity to recommended budget adjustments based on department operational requests and/or one‐ time funding requests. Requests are reviewed by City Administration and are included in the City Manager’s Proposed Budget. While Finance staff was developing the operating budget, Public Works staff worked to develop and finalize the Capital Improvement Program (CIP) budget during this same time frame. On March 7th, a public hearing was held for City Council to consider and adopt an amendment to the TransNet Local Street Improvement Program of projects for fiscal years 2016‐ 17 through 2020‐21. And on May 4th, staff held a Council Workshop on Infrastructure. Finance will present the City Council with a balanced General Fund budget on May 23, 2017. The City Council will then set a public hearing date prior to Council taking action on the adoption of the budget. Copies of the proposed budget will be made available for public review in the Office of the City Clerk, City libraries, and the City’s website at least 10 days prior to the public hearing. As set forth in the City Charter, at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by motion adopted by affirmative votes of at least four members. Throughout the year, the Finance Department provides the City Council with quarterly financial status reports comparing expenditure and revenue projections to budgeted amounts, highlighting any variances and recommending corrective actions as necessary. BUDGET DEVELOPMENT MILESTONES March 7, 2017 Public hearing to adopt an amendment to the TransNet Local Street Improvement Program May 4, 2017 Infrastructure Workshop May 10 and May 11, 2017 Public workshops to provide overview of the City Manager’s Proposed Budget May 18, 2017 Budget Document submitted to City Council As required by City Charter, the City Manager’s proposed budget was submitted to the City Council at least thirty‐five days prior to the beginning of the fiscal year. Copies of the proposed budget are available for public review in the Office of the City Clerk, City libraries, as well as on the City’s website. May 23, 2017 Presentation to City Council of the Fiscal Year 2017‐ 2018 City Manager’s Proposed Budget and Council consideration and acceptance of the Budget as the City Council’s Proposed Budget. Concurrently, a public hearing on the Budget will be scheduled for a Council meeting in June. Leading up to this hearing, the City Council’s Proposed Budget will be made available for public review for at least 10 days. June 2017 After at least one public hearing, the City Council will consider public testimony, make any required or appropriate changes, and adopt the Budget. Adoption of the budget requires the affirmative votes of at least three members of the Council. 52017-05-23 Agenda Packet Page 234 62017-05-23 Agenda Packet Page 235 FY2018 City of Chula Vista Proposed Budget Economic Overview This section of the budget document identifies and outlines economic indicators that impact revenue forecasts at the local level. Several sources are used to forecast City revenues using national, state, and local area economic trends. Sources include: the UCLA Anderson Forecast (National and State), U.S. Department of Commerce (National), California Employment Development Department (National, State, and Local), California Department of Finance (State and Local), Bureau of Economic Analysis, and the University of San Diego Index of Leading Economic Indicators (San Diego region). NATIONAL In his March 2017 outlook for the national economy, UCLA Anderson Forecast Senior Economist David Shulman wrote that some of his current expectations are similar to those of last quarter, including the approximately $500 billion a year in personal and business tax reductions, a repatriation holiday for accumulated foreign earnings, increased defense and infrastructure spending, Medicaid cuts, relaxed regulations, modest changes to trade and immigration policies, and reductions in food and aircraft exports, as several trading partners react to the policy changes. The impact of a large tax cut on an economy that is at or very close to full employment will likely result in a short‐term growth spike, but will quickly fade. The forecast calls for real GDP growth of 2.4 percent, 3 percent and 2.2 percent in 2017, 2018 and 2019, respectively, noting that real growth will subside on a quarterly basis in 2019, as higher interest rates weigh on the economy. Though job growth appears robust with 170,000 jobs a month expected in 2017 and 2018, the figures are forecast to decrease to approximately 110,000 a month in 2019 and will further decrease if the administration embarks on a large‐scale deportation program of unauthorized immigrants. Concurrently, the unemployment rate could bottom out at 4.1 percent in late 2018, before gradually rising. Amid strong growth in consumer spending since 2014, Shulman indicates that a proposed tax cut could increase spending from a forecasted 2.8 percent increase this year to 3.6 percent in 2018. However, housing starts may plateau at the 1.2 million to 1.3 million range and 30‐year fixed mortgage rates could exceed 6 percent in 2019, up from the current 4.25 percent and the recent low of 3.5 percent. After six years of declines, the forecast expects defense purchases to become a priority and increase by 1.2 percent in 2017. Defense purchases are then projected to increase by 4.1 percent and 2.5 percent in 2018 and 2019, respectively. In conclusion, Shulman wrote that the forecast has become “more concerned about the administration’s tone with respect to trade and immigration policies. The changes could be far more drastic than what we are now anticipating, thereby increasing the risk level to our forecast.” CALIFORNIA UCLA Anderson Senior Economist Jerry Nickelsburg’s March 2017 forecast for California is updated to reflect the delay in congressional approval of the Trump infrastructure and defense spending. Total employment was 2.8 percent higher than 12 months earlier and payroll employment 2 percent higher. The state’s rate of increase was higher than the nation’s, but slowed during the last three months of 2016. California’s unemployment rate is expected to have its normal differential to the U.S. rate at 4.6 percent by the end of the forecast period (2019). 0.00 1.00 2.00 3.00 4.00 2015 Q1 2016 Q1 2017 Q1 Gross Domestic Product by Quarter Annual Rate 72017-05-23 Agenda Packet Page 236 FY2018 City of Chula Vista Proposed Budget “The weakness relative to the U.S. reflects the fact that California, having already reached near full employment, will benefit less from further stimulus than Rust Belt states and the fact that deportations of unskilled workers would impact food harvesting and food processing,” as well as garment manufacturing and residential construction, Nickelsburg wrote. What remains unknown are the effects that changes in Immigration and Naturalization Service rules of engagement, exchange rates, international travel visa protocols and the abortive travel ban may have on the state’s economy. Nickelsburg does factor in the potential impact of the sanctuary city movement that has taken root within the state and which may thwart the federal government’s efforts to move quickly on deportations. The forecast anticipates employment growth to be 2.1 percent, 1.2 percent and 0.9 percent for 2017, 2018 and 2019, respectively, with payrolls expected to grow at about the same rate. Real personal income growth is forecast to be 3.4 percent in 2017, 3.7 percent in 2018, and 3.2 percent in 2019. Home building will continue in California at about 118,000 units per year through the forecast period. COUNTY The County’s economic performance continued steady if not strong as reported by the University of San Diego’s Index of Leading Economic Indicators for San Diego County rose 0.4 percent in rose 0.4 percent in February. The gain was led by strong gains in consumer confidence and the outlook for the national economy. There were also moderate gains in initial claims for unemployment insurance and local stock prices and a small gain in help wanted advertising. For the second month in a row, the only negative component was building permits, which was down sharply again. Overall the increase in the index was robust, as five of the six components were up for the month. This suggests that the local economy is picking up steam and is expected to do better than what had previously been expected. The forecast for employment growth for San Diego County is now at 30,000 for 2017, compared to the previous forecast of 25,000. As usual, there are caveats. This is barring any sort of trade war or any other international conflict. The domestic economy looks sound. So much so that the Federal Reserve increased interest rates by 0.25 percent at its last meeting and is expected to increase them a further 50 basis points by the end of the year. While this will put more money into the hands of savers, a big question is how this will affect borrowers, particularly in the housing market. Local building permit activity is already down considerably this year (see below), and an increase in interest rates is expected to slow the single family market. Overall the performance of the main components of the index can be summarized as follows: Residential units authorized by building permits had a second straight bad month to open 2017. For the first two months of the year, total residential units authorized were down 69 percent compared to the same period last year. Single family units are actually up this year; all of the damage has come in multi‐family units authorized. Only 193 multi‐ family units have been authorized this year compared to the 1,545 that were authorized last January and February. Initial claims for unemployment insurance and help wanted advertising hit their lowest level in almost 10 years (since March 2007), which is a positive for both the local economy and for the USD Index. On the hiring side of the labor market, help wanted advertising was only slightly positive. The net result was that the seasonally adjusted unemployment rate fell to 4.2 percent in February 2017. Consumer confidence continued its upward trend increasing for the eighth consecutive month. Local stock prices continued to match the rally in the broader market averages, signaling that investors are optimistic about the prospects for San Diego based companies. The national Index of Leading Economic Indicators increased for the sixth consecutive month, with the last three months particularly strong. So the outlook for the national economy remains positive. The third estimate for GDP growth for the fourth quarter showed 2.1 percent growth, which is up from the 1.9 percent reading given in advance of the second quarter estimates. 82017-05-23 Agenda Packet Page 237 FY2018 City of Chula Vista Proposed Budget San Diego Index of Leading Economic Indicators San Diego County, 2013 – 2017 CITY The City’s General Fund reflects positive growth in its major revenue sources. The City’s property taxes continued to recover as they are projected to increase by $2.4 million or 7.9% over the previous fiscal year budget. It should be noted however that $0.7 million of this increase represents an estimated loan repayment from the redevelopment agency. The increase in property taxes however, is offset by a lower growth rate in the other local taxes revenue category. Other local taxes (excluding new Measure P sales tax) total $58.5 million in the 2017‐18 proposed budget and includes the following major City revenue sources: sales taxes, franchise fees, utility taxes, transient occupancy taxes and business licenses. Overall, the other local taxes revenue category (excluding Measure P sales tax) accounts for 35.1% of General Fund revenues. Based on the trends observed in fiscal year 2016‐17, the projection for various revenue sources within this revenue category were reduced or remained flat in the fiscal year 2017‐18 budget. As a result, the other local taxes revenue category reflects a modest 1.9% increase in the proposed fiscal year 2017‐18 budget. Overall, General Fund revenues are projected to increase by 2.6% in the fiscal year 2017‐18 proposed budget. This increase however was not sufficient to close a $4.3 million budget gap that was identified in the initial stages of the budget development process. This gap required various departmental budget reductions and identification of additional non‐discretionary revenue sources in order to balance the fiscal year 2017‐18 proposed budget. One positive note was the approval of Measure P – a temporary, ten‐year, half‐cent sales tax to fund high priority infrastructure needs. Collection of the sales tax began on April 1, 2017. The sales tax is projected to raise $178 million over the duration of the measure. The Chula Vista City Council has approved an initial expenditure of $3.2 million of Measure P sales tax funds for infrastructure in fiscal year 2016‐17. The fiscal year 2017‐18 budget includes an estimated $16.3 million in Measure P sales tax revenues. The City’s housing market continued its recovery in as the median home value within the City increased by 3.0% from April of 2016 to April of 2017. However, the recovery may be slowing as the median home price is projected to rise by only 1.0% in 2018 (based on Zillow estimate). The performance in the housing market is reflected in the assumptions used to formulate property tax revenues in the fiscal year 2017‐18 proposed budget. Property Tax revenues for fiscal year 2017‐18 are based on 3.0% increase in assessed valuations for existing property within the City and an additional 1.5% increase due to projected growth from new development. In general, a 2% growth rate in assessed valuation of taxable property is legally permitted under Proposition 13 law assuming that there is a commensurate increase in the State’s consumer price index (CPI) of 2% or greater. The City is projecting to receive the full 2% increase for fiscal year 2017‐18 as the state CPI increased by 2.6%. This valuation increase in the City’s assessment role provides an important yearly boost to property tax revenues as the increase is applied to the entire assessment roll. It is important to note that during the economic downturn the City did not benefit from the increase as the CPI had also failed to reach the 2% threshold due to the recession. In those years, where the City did not receive the 2% base increase in assessment roll valuation, the City relied on re‐ assessments of properties that were re‐sold at increased price levels or re‐assessments of properties that increased values under Proposition 8 law for property revenue growth. Under Proposition 8, property owners may apply for an assessment appeal and be granted a lower assessed valuation for property 92017-05-23 Agenda Packet Page 238 FY2018 City of Chula Vista Proposed Budget tax purposes when their property values decrease. The lower assessed valuations are granted under the stipulation that their property assessments will be re‐ assessed in the future when property values recover. The table below provides a year over year summary of median home value changes that have taken place within the City’s zip codes. The improvement in home values will also help to improve the City’s property tax base. Examination of other key demographic factors indicates that the City’s unemployment situation improved to 5.4% in February of 2017 down from 6.1% for the same month of the prior year. Although the unemployment rate improved, the City’s unemployment rate was still higher than the state (5.2%) and the national unemployment rate of 4.7%. Additionally, Chula Vista’s population remains stable as it continues to maintain its place as the 14th largest incorporated city in the state according to the California Department of Finance. Chula Vista Home Prices April 2016 Compared to April 2017 Zip Code Locale Zillow Index Price Percent Change 2016 2017 91910 North 456,000 475,000 4.2% 91911 South 417,000 438,000 5.0% 91913 Eastlake 512,000 522,000 2.0% 91914 NE 624,000 655,000 5.6% 91915 SE 506,000 525,000 6.6% Source Zillow.com/research 102017-05-23 Agenda Packet Page 239 FY2018 City of Chula Vista Proposed Budget All Funds Summary The following section provides an overview of the combined all funds budget. Detailed descriptions, funding, and staffing levels are provided for each fund under the corresponding fund section in this document. This section is intended to provide a citywide overview of the proposed budget for fiscal year 2017‐18. ALL FUNDS REVENUE SUMMARY The combined revenue budget for all City funds totals $363.8 million; $46.7 million represents inter‐fund transfers. Projected revenues for all funds are anticipated to increase by $81.3 million when compared to the fiscal year 2016‐17 adopted budget of $282.5 million. Other Revenue is the category with the largest revenue change when compared to fiscal year 2016‐17 adopted budget with a net increase of $47.2 million. The changes in this category are due to the following: The largest change in this category is reflected in the 2016 Measure P Sales Tax Fund, which reflects a $44.2 million increase when compared to the prior year. This change includes the estimated bond proceeds to be received as a result of debt financing for Measure P projects. The ½ cent sales tax was approved by voters in November 2016. The next largest increase is reflected in the Workers Compensation Fund of $1.5 million in comparison to the fiscal year 2016‐17 adopted budget. This is a result of funding the reserves and a rise in workers compensation claims expenses. Three special maintenance districts total a change of $1.6 million from prior year. This is due to an anticipated $0.9 million in assessment revenues for maintenance districts CFD 08M (Village 6 McMillin/Otay Ranch) and CFD 97‐1 (Otay Ranch), and the anticipated initial levy of $0.7 million in assessments within CFD 18M (Village 3 Otay Ranch). The next largest change is reflected in the Other Local Taxes category, which reflects a net increase of $15.2 million when compared to the prior fiscal year. The most significant of the changes occurs in the General Fund of $17.4 million. This increase is mainly due to the $16.3 million in Measure P Sales Tax revenues anticipated to be collected as part of the voter approved ½ cent sales tax. The General Fund is a pass‐ through for these revenues, which will ultimately be recognized as a Transfer Out to the 2016 Measure P Sales Tax Fund. The General Fund also includes increases in Transient Occupancy Tax ($0.7 million), Sales Tax ($0.6 million), Franchise Fees ($0.2 million), Real Property Transfer Tax ($0.1 million), and a $0.5 million reduction in Utility Users Tax. The net increase in the General Fund is partially offset by a $2.2 million decrease in anticipated Transportation Sales Tax (TransNet) revenues due to the prior year use of carry over funds from completed or closed out projects. The Transfers In revenue category reflects a net increase of $11.1 million when compared to the prior fiscal year. This increase is largely reflected in the 2016 Measure P Sales Tax fund which reflects the transfer in of $16.3 million in voter approved ½ cent sales tax revenues from the General Fund. This increase was partially offset by the following reductions: a $1.9 million net decrease in the Successor Agency Debt Services funds due to refinancing of the debt; a net reduction of $1.6 million in transfers in to City Debt Services Funds for activities related to inter‐fund loans, notes, and capital leases; a $0.8 million reduction of the one‐time transfer to the General Fund from the Public Facilities Development Impact Fee (PFDIF) fund for a loan repayment, a net reduction of $0.5 million in the Chula Vista Public Financing Authority Debt Service Funds as a result of scheduled debt service payments and bond refinancing; and a decrease of $0.4 million in the transfer into the Park Acquisition and Development Fund for a loan repayment based on funding availability. The Development Impact Fees revenue category reflects an increase of $2.7 million when compared to the prior fiscal year. The changes are reflected in the Salt Creek Sewer DIF ($0.2 million), Public Facilities DIF funds ($2.5 million), and the EUC Millenia Pedestrian Bridge DIF Fund ($0.04 million). These changes are intended to bring budgeted revenues in line with projected revenues. A net increase of $2.4 million is anticipated within the Property Tax revenue category. This increase is within the General Fund and can be attributed to the 112017-05-23 Agenda Packet Page 240 FY2018 City of Chula Vista Proposed Budget following: $1.5 million increase due to an anticipated 3.0% growth in Assessed Valuation (AV); a projected $0.7 million Redevelopment Property Tax Trust Fund (RPPTF) payment to the General Fund for the Supplemental Educational Revenue Augmentation Fund (SERAF) loan; and $0.4 million increase, or 1.5% additional anticipated AV growth, due to new development. The Charges for Services revenue category reflects a net increase of $1.2 million. The increase occurs in the General Fund and is a result of the following: an increase of $0.4 million in Police Reimbursements as a result of increased special events; an anticipated growth in emergency cost recovery claims of $0.2 million ($135,000 in continuous revenue and $60,000 in one‐time); a reclassification of $0.2 million in revenues from the Other Revenue category to Zoning‐Fees Deposit Based for Engineering staff time reimbursements; an increase of $0.1 million each in Passport Fees, Fire Construction Fees, jail reimbursements, and Recreation Program Fees. A net increase of $1.0 million is estimated in the Revenues from Other Agencies category in fiscal year 2017‐18 when compared to prior year adopted budget. This increase is many due to a projected $1.4 million net increase in the Other Transportation Program Fund for Federal Grant funding of fiscal year 2017‐18 capital improvement projects. The General Fund also anticipates a $1.2 million increase in Motor Vehicle License Fees (MVLF) in accordance with the projected AV growth and a decrease of $0.2 million in the COPS Hiring Grant for a net increase of $1.0 million. The Chula Vista Elite Athlete Training Center Fund is anticipating $0.3 million in revenues for contractual reimbursement of utility expenses. The above increases were partially offset by the following deceases: a $1.1 million decrease in the Community Development Block Grant (CDBG) Fund for Federal Grants, as the City has excluded the budgeting of these funds pending final award notification, at which time staff will return to City Council with appropriation recommendations; and a $0.6 million decrease in grant revenue in the Federal Grants Fund based on anticipated reimbursements. The Licenses and Permits category is estimated to increase by $0.4 million in fiscal year 2017‐18 when compared to prior year. $0.2 million of this increase is in the General Fund and is a result of higher anticipated animal licenses, security alarm permits, and parking permit revenue. The remaining $0.2 million increase is in the Development Services Fund for a projected increase in building permit activity. A net increase to Fines, Forfeitures, Penalties revenue of $0.05 is estimated in fiscal year 2017‐18 in comparison to prior year. This change is within the General Fund and can be attributed to higher projected negligent vehicle impound fees and booking fees. Use of Money and Property is anticipating a net increase of $0.04 million. Increases of $0.2 million in the Housing – Successor Agency for investment earnings, $0.1 million in the Chula Vista Municipal Golf Course Fund for rentals/leases, and $0.02 in the Parking Meter Fund for parking meters are proposed to bring budgeted revenues in line with projected revenues of these funds. This increase is partially offset with a $0.3 million net reduction in the General Fund. The General Fund reduction is due to a $0.5 million reduction in rentals/leases of City owed buildings, which is offset by anticipated increases in rental/leases parks and recreation centers ($0.1 million) and rental telecom site license fees ($0.03 million). The Schedule of Revenues report, included in the Summary Tables section, reflects the projected revenues for fiscal year 2017‐18 at the fund and revenue type level. The following table reflects a summary of all City revenues by category. 122017-05-23 Agenda Packet Page 241 FY2018 City of Chula Vista Proposed Budget Sources of Funds (All Funds Combined) Fiscal Year 2015 to Fiscal Year 2018 Revenues In Thousands (000) FY14‐15 FY15‐16 FY 16‐17 FY17‐18 Change Actual Actual Adopted Proposed (FY17‐FY18) Other Revenue 37,170$ 73,014$ 33,986$ 81,213$ 47,227$ Other Local Taxes 66,554$ 61,747$ 66,633$ 81,850$ 15,217$ Transfers In 30,033$ 84,256$ 35,522$ 46,670$ 11,148$ Development Impact Fees 7,651$ 11,900$ 5,472$ 8,137$ 2,665$ Property Taxes 34,796$ 35,535$ 36,142$ 38,588$ 2,446$ Charges for Services 59,456$ 56,193$ 48,355$ 49,542$ 1,187$ Revenue from Other Agencies 48,585$ 44,502$ 47,927$ 48,898$ 971$ Licenses and Permits 3,300$ 3,439$ 3,325$ 3,676$ 351$ Fines, Forfeitures, Penalties 2,278$ 1,943$ 1,663$ 1,718$ 55$ Use of Money & Property 5,842$ 8,210$ 3,497$ 3,534$ 37$ Total Revenues 295,665$ 380,740$ 282,522$ 363,826$ 81,304$ Revenue Category Total Revenues Fiscal Year 2017‐2018 (All Funds Combined) Property Taxes, 11% Other Local Taxes, 22% Licenses and Permits, 1% Fines, Forfeitures, Penalties, Less than 1% Use of Money & Property, 1% Revenue from Other Agencies, 13% Charges for Services, 14% Development Impact Fees, 2% Other Revenue, 22% Transfers In, 13% 132017-05-23 Agenda Packet Page 242 FY2018 City of Chula Vista Proposed Budget ALL FUNDS EXPENDITURE SUMMARY The combined expenditure budget for all City funds for fiscal year 2017‐18 totals $373.0 million, of which $46.7 million represents inter‐fund transfers. This amount includes a General Fund operating budget of $166.6 million and a Capital Improvement Program (CIP) budget of $73.9 million. The fiscal year 2017‐18 budget includes $85.8 million in operating budgets for the non‐ General Fund funds including Sewer, Successor Agency to the Redevelopment Agency, Development Services, CV Housing, and Fleet. When compared to the prior year budget, the fiscal year 2017‐18 proposed budget reflects an increase of $80.8 million. The CIP Project Expenditure category reflects the largest change when compared to fiscal year 2016‐17 adopted budget. This category is projected to grow by a net $53.1 million. This increase is mainly attributed to $52.1 million in budgeted capital improvement projects within the 2016 Measure P Sales Tax Fund. Other major increases within this category occur in the following funds: Other Transportation Programs ($1.4 million), Transportation DIF ($1.3 million), and Sewer Facility Replacement ($1.3 million). These increases were partially offset by a decrease in Capital Projects funding in the “Trunk Sewer Capital Reserve Fund ($1.7 million) and Transportation Sales Tax Fund ($1.3 million). The next largest change in expenditures is reflected in the Transfers Out expense category. This category is estimated to increase by $11.1 million when compared to prior fiscal year. The increase is the net impact of increases and decreases in multiple funds. The most significant changes are reflected in the following: The General Fund has a net increase in Transfers Out expenditures of $16.9 million. The largest contributor to this increase is the transfer out of the voter approved ½ cent sales tax to the 2016 Measure P Sales Tax Fund of $16.3 million. Other changes in the General Fund include transfer out increases of $0.8 million to the Public Liability Fund and $0.6 million to the 2016 COP LRRB Fund for debt service, and partially offset by a decrease of $0.7 million to 2010 COP Fund as this debt was refinanced. The increase in the General Fund was partially offset by decreases to Transfers Out in the following funds: Redevelopment Obligation Retirement Fund ($1.9 million), Long Term Advances DSF – City ($1.6 million), Public Facilities Civic Center DIF ($1.0 million), Long Term Advances DSF – RDA ($1.0 million), and the Park Acquisition and Development (West) Fund ($0.4 million). A net increase of $6.2 million is reflected in the Supplies and Services category. The most considerable of these changes are reflected in the following funds: Sewer Service Revenue Fund reflects an increase of $5.6 million in contractual costs for Pure Water San Diego project. The 2016 Measure P Sales Tax Fund includes the budget for software and equipment in the amount of $1.6 million. These expenditures are in compliance with the Infrastructure, Facilities and Equipment Expenditure Plan. The above increases were partially offset by reductions in the following funds: TUT Common Fund ($0.5 million), Federal Grants Fund ($0.4 million, and Technology Replacement Fund ($0.1 million). The Personnel Services expense category is projected to grow by $5.7 million when compared to the fiscal year 2016‐17 adopted budget. This increase reflects the following changes: The fiscal year 2017‐18 budget reflects a net increase of approximately 9.50 positions when compared to the fiscal year 2016‐17 adopted budget, this includes positions that were approved during fiscal year 2016‐17 (9.00 FTE) or are recommended as part of the development of the fiscal year 2017‐18 budget (0.50 FTE). These position changes are reflected in the General Fund, Police Grants, and Fleet Management funds. The annualized cost of the salary increases approved for all employee groups during fiscal year 2016‐17. An estimated wage inflation of 2% was included for all employee groups in the fiscal year 2017‐18 proposed budget. At the time of the development of the proposed budget the City was in negotiations with the Police Officers’ Association and the International Association of Firefighters. Agreements were reached with these groups during the final development of the budget. Any additional impact as a result of the agreements will be brought forward for Council approval. Increased costs related to retirement and medical (flex) benefits. 142017-05-23 Agenda Packet Page 243 FY2018 City of Chula Vista Proposed Budget An increase in workers comp charges based on higher expenditure trends in the Workers Comp fund. The Capital expenditure category is anticipated to grow a net $4.5 million when compared to the previous fiscal year. The most significant of these changes are within the subsequent funds: Increases of $6.3 million in the 2016 Measure P Sales Tax and $0.1 million in the Sewer Service Revenue funds for the purchase of capital equipment. A reduction of $1.4 million in the General Fund as the prior fiscal year included funding for the acquisition of fire apparatus that is eliminated from the proposed budget. Reductions for equipment purchases in the public safety funds totaling $0.4 million (Asset Seizure and Supplemental Law Enforcement Services funds). A net increase of $1.3 million is anticipated in the Other Expenses category. Debt service payments are included within this category and can vary based on any bond refunding/refinancing that are completed in the prior year. Significant changes occurred in the following funds: A net reduction of $2.4 million in the Successor Agency – Debt Service funds and a net reduction of $0.5 million in the Chula Vista Public Financing Authority – Debt Service funds as a result of anticipated debt service payments. An increase in the Housing – SA fund of $1.1 million due to a projected increase in staff time reimbursements and loans to outside entities for housing projects. An increase of $1.0 million in the Workers Compensation Fund as result of higher workers compensation claims expenditures. An increase of $1.0 million in the Chula Vista Housing Authority Fund for the first‐time Homebuyer Program. The above category increases were offset by a decrease in the Non‐CIP Project Expenditures category of $1.0 million compared to fiscal year 2016‐17 adopted budget. This decrease is mainly within the Community Development Block Grant (CDBG) Fund, as the City has excluded the budgeting of these projects pending final award notification. The total number of recommended permanent positions for fiscal year 2017‐18 is 993.75, of which 831.75 are included in the General Fund and 162.00 are included in various other funds. The adopted staffing represents a net increase of 9.50 positions when compared to the fiscal year 2016‐17 adopted budget. The Authorized Positions by Department report is included in the Summary Tables section of this document; it provides the new staffing by classification and department. A summary of staffing changes is also included in the budget summary section of this document. The following table reflects the expenditures for all funds by expense category. 152017-05-23 Agenda Packet Page 244 FY2018 City of Chula Vista Proposed Budget Uses of Funds (All Funds Combined) Fiscal Year 2015 to Fiscal Year 2018 Expenditures In Thousands (000) FY14‐15 FY15‐16 FY 16‐17 FY 17‐18 Change Actual Actual Adopted Proposed (FY17‐FY18) Personnel Services 125,606$ 133,097$ 139,441$ 145,123$ 5,682$ Supplies and Services 54,628$ 50,458$ 53,913$ 60,067$ 6,154$ Other Expenses 39,666$ 77,359$ 28,457$ 29,729$ 1,272$ Capital 3,038$ 2,089$ 4,379$ 8,884$ 4,505$ Transfers Out 30,033$ 84,256$ 35,522$ 46,670$ 11,148$ CIP Project Expenditures 21,073$ 14,906$ 20,789$ 73,872$ 53,083$ Non‐CIP Project Expenditures 1,026$ 2,987$ 1,071$ 69$ (1,002)$ Utilities 7,709$ 7,145$ 8,619$ 8,556$ (63)$ Total Expenditures 282,779$ 372,296$ 292,191$ 372,970$ 80,779$ Expenditure Category Total Budget Fiscal Year 2017‐18 (All Funds Combined) Personnel Services, 39% Supplies and Services, 16%Other Expenses, 8% Capital, 2% Transfers Out, 13% CIP Project Expenditures, 20% Non‐CIP Project Expenditures, 0% Utilities, 2% 162017-05-23 Agenda Packet Page 245 FY2018 City of Chula Vista Proposed Budget GENERAL FUND RESERVES In November 2009, the City Council approved a resolution updating the City’s General Fund Reserve Policy. The updated reserve policy: Provides guidelines for the use of reserves Sets a new long‐term goal for higher General Fund Reserve level, from 8% to 15% Includes the establishment of two new reserve funds ‐ Economic Contingency Reserve and Catastrophic Event Reserve Achieving these reserve levels is a long‐term goal; once fully implemented, the new General Fund Reserve policy will require higher reserve levels. This will help mitigate the negative impact on revenues from economic fluctuations, position the City to withstand potential State revenue takeaways, provide debt service coverage, and provide a resource to fund unforeseen expenditure requirements. The Third Quarter Financial Report for fiscal year 2016‐ 17 is projecting that the General Fund would end the fiscal year balanced. As reflected on the following table, General Fund reserve levels have not only stabilized but have increased slightly since fiscal year 2009. It is important that the City maintain reserves in order to address the following potential issues: Dramatic economic fluctuations Debt service coverage Development impacts – there may be gaps in timing when services will need to be provided to new developments but the development area has not yet generated the revenues needed to fully offset the cost of those services Unfunded liabilities – deferred building and equipment repairs, equipment replacement, deteriorating infrastructure, and pension obligations. The following chart depicts the General Fund operating reserves since fiscal year 2010‐11 as a percentage of the adopted budget. The reserve percentage appears to decrease in fiscal year 2017‐18, this is due to the pass‐ through of 2016 Measure P Sales Tax revenues through the General Fund. Actual reserve balances are not anticipated to be reduced. The fiscal year 2017‐18 General Fund Proposed Budget is balanced and there is no budgeted impact to the General Fund reserves. General Fund Operating Reserves Fiscal Year 2011 to Fiscal Year 2018 Note: The preceding chart reflects only the General Fund Operating Reserves. It does not include the Economic Contingency Reserve, which has a balance of approximately $3.6 million. Combined with the operating reserve, these two reserve funds total approximately 12.9% of the fiscal year 2017‐18 General Fund budget. $‐ $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% FY11 FY12 FY13 FY14 FY15 FY16 FY17 Projected FY18 Estimated GF FUND BALANCEMillionsRESERVE PERCENTAGEReserve %Reserve Policy (Updated 2009)GF Fund Balance ($) 172017-05-23 Agenda Packet Page 246 182017-05-23 Agenda Packet Page 247 FY2018 City of Chula Vista Proposed Budget Summary of Staffing Changes The fiscal year 2017‐18 proposed budget includes 993.75 positions for all funds. This is a net increase of 9.50 positions when compared to the fiscal year 2016‐ 17 adopted budget that included 984.25 authorized positions. The summary of staffing changes is divided into two sections – the staffing changes that were approved by Council during fiscal year 2016‐17 and changes made as part of the development of the fiscal year 2017‐18 budget. POSITION CHANGES AUTHORIZED DURING FISCAL YEAR 2016‐17 During fiscal year 2016‐17, Council approved the addition of 9.00 FTE citywide as well as several reclassifications to reflect changes in duties. Changes in the General Fund resulted in a net 2.00 FTE increase and changes to other funds resulted in a net increase of 7.00 FTE. These changes included the following: Finance – As a result of a classification study, a Principal Management Analyst was reclassified to a Fiscal Debt Management Analyst position to better represent the assignment of responsibilities of the position. Economic Development – In an effort to address the needs of the Economic Department and Housing/Neighborhood Services offices, the City Council approved the addition of 1.00 Senior Fiscal Office Specialist to the fiscal year 2016‐17 amended budget. Development Services – General Fund – The department received approval to eliminate 1.00 Principal Planner and to add 1.00 Principal Landscape Architect. Police – The Police Department mid‐year fiscal 2016‐17 changes include the following eliminations/additions: 2.00 Police Agents to 2.00 Police Sergeants and 1.00 Police Dispatch Supervisor to a Police Dispatcher; and the following reclassifications: 1.00 Senior Management Analyst to a Supervising Public Safety Analyst and 1.00 Senior Police Technology Specialist to a Police Technology Manager. The Police Department also received approval for the addition of 1.00 Latent Print Examiner to the Forensic Services division. Public Works – The department received approval for the elimination of 1.0 Building Project Manager and the addition of 1.0 Senior Civil Engineer and the reclassification of 1.00 Senior Management Analyst to a Principal Management Analyst. This reclassification was approved to better reflect the assignment and responsibilities of the position. Police Grants Fund – The City serves as the fiscal agent for CBAG and SD LECC. Changes approved for these programs include the reclassification of 1.00 FA Program Assistant to a FA Senior Program Assistant. The following additions were also approved: (a) 1.00 FA Supervising Intelligence Analyst; (b) 2.00 FA Senior Intelligence Analysts; (c) 1.00 FA Intelligence Analyst; (d) 1.00 FA Program Assistant Supervisor; (e) 1.00 FA Deputy Director SD LECC; and (f) 1.00 FA Analyst. The following table summarizes the position changes Council authorized during fiscal year 2016‐17. 192017-05-23 Agenda Packet Page 248 FY2018 City of Chula Vista Proposed Budget Summary of Fiscal Year 2016‐17 Staffing Changes Approved by City Council FISCAL YEAR 2017‐18 CHANGES The fiscal year 2017‐18 budget reflects specific program expansions based on the resources available. In total, the changes result in a net increase of 0.50 FTE when compared to the fiscal year 2016‐17 amended budget. These include the following changes summarized by department: City Council – The proposed budget includes the elimination of 1.00 Office Specialist (Mayor/At‐Will) position and the addition of 1.00 Constituent Services Representative. This change will reflect the duties of the position. Information Technology Services – To better reflect the job assignments, the Information Technology Services Department eliminated 2.00 Information Technology Support Specialist positions and added 2.00 Information Technology Technicians. This resulted in no net position changes to the department. Department/Fund Program Position FTE Principal Management Analyst (1.00) Fiscal Debt Management Analyst 1.00 Economic Development (1.00) Economic Development Administration Senior Fiscal Office Specialist 1.00 Principal Planner (1.00) Principal Landscape Architect 1.00 Police Agent (2.00) Police Sergeant 2.00 Senior Management Analyst (1.00) Supervising Public Safety Analyst 1.00 Police Dispatch Supervisor (1.00) Police Dispatcher 1.00 Senior Police Technology Specialist (1.00) Police Technology Manager 1.00 Forensic Services Latent Print Examiner 1.00 Building Project Manager (1.00) Se nior Civil Engineer 1.00 Senior Management Analyst (1.00) Principal Management Analyst 1.00 FA Program Assistant (1.00) FA Senior Program Assistant 1.00 FA Supervising Intelligence Analyst 1.00 FA Senior Intelligence Analyst 2.00 FA Intelligence Analyst 1.00 FA Program Assistant Supervisor 1.00 FA Deputy Director SDLECC 1.00 FA Analyst 1.00 9.00 TOTAL CITYWIDE Police (1.00)Reclassifications Finance (0.00)Reclassification Development Services ‐ General Fund (0.00)Reclassification Public Works (0.00) Reclassifications Reclassification Police Grants Fund (7.00)Fiscal Agent (FA) positions ‐ HIDTA and SD LECC 202017-05-23 Agenda Packet Page 249 FY2018 City of Chula Vista Proposed Budget Finance – The proposed budget includes the following eliminations/additions within the Finance Department: (a) 1.0 Fiscal & Management Analyst to 1.0 Senior Management Analyst; (b) 1.0 Senior Procurement Specialist to Procurement Services Analyst. The changes result in no net position changes to the authorized position count. Animal Care Facility – The Animal Care Facility reorganized its workload as a result of the loss of contract Animal Care services provided to the City of Imperial Beach. Due to this reason, the Animal Care Facility eliminated 1.00 Animal Care Officer and added an Animal Care Specialist. In addition to the above, a reclassification of a Fiscal Office Specialist to a Senior Fiscal Office Specialist was approved to better reflect the job duties of the position. Economic Development – The following changes in the Economic Development Department are included in the fiscal year 2017‐18 proposed budget: (a) the reclassification of 1.0 Senior Secretary to an Administrative Secretary; (b) the elimination of 1.00 Project Coordinator, (c) the addition of a Conservation Specialist II position which is fully offset by Conservation related revenues; and (d) the elimination of 4.00 Conservation Specialists I positions and the addition of 4.00 Conservation Specialist II positions for future career advancement Engineering and Capital Projects ‐ In an effort to streamline processes and better reflect department responsibilities, the Engineering divisions of the Public Works Department are being restructured into a standalone department. This resulted in the transfer of the following positions: 1.00 Administrative Services Manager, 10.00 Associate Engineers, 1.00 Assistant Engineer, 1.00 Associate Land Surveyor, 1.00 Assistant Director of Engineering, 2.00 Engineering Technician IIs, 2.00 Environmental Health Specialists, 1.00 Management Analyst, 4.00 Principal Civil Engineers, 6.00 Public Works Inspector IIs, 1.00 Secretary, 1.00 Senior Administrative Secretary, 6.00 Senior Civil Engineers, 2.00 Senior Engineering Technicians, 2.00 Senior Public Works Inspectors, 1.00 Survey Technician II, 3.00 Traffic Devices Technicians, and 1.00 Traffic Devices Technician Supervisor. These changes result in a net reduction of 46.00 FTEs to the Public Works Department. Due to the reorganization, the Assistant Director of Engineering is being reclassified to a Director of Engineering. In addition to the above changes, 1.00 Assistant Engineer was eliminated and 1.00 Associate Engineer was added. Police – The fiscal year 2017‐18 proposed budget includes the addition of 5.00 Peace Officers to Community Patrol. Public Works – In addition to the transfer of 46.00 FTEs to the Engineering and Capital Projects department, a vacant 0.50 FTE Custodian was eliminated as part of the fiscal year 2017‐18 proposed budget. Together, these changes result in a net decrease of 46.50 FTE to the Public Works Department. Recreation – The proposed budget includes a reclassification of 1.00 Senior Fiscal Office Specialist to a Management Analyst. Police Grants Fund – Changes in the HIDTA and SD LECC programs include the elimination of 1.00 FA Administrative Analyst II, 1.00 FA Executive Director, and 1.00 FA Program Manager. Fleet – The elimination of 1.00 vacant Equipment Mechanic is included in the fiscal year 2017‐18 proposed budget due to efficiencies gained within the central garage operations. Reclassifications ‐ During the development of the fiscal year 2017‐18 budget, departments worked with the Human Resources Department to review positions that are working out of class due to changing job duties. Human Resources reviewed and determined the appropriate classification and compensation for these reclassification requests. The recommended staffing changes are based on changes to scope of responsibility. The following table summarizes the changes reflected in the fiscal year 2017‐18 budget. 212017-05-23 Agenda Packet Page 250 FY2018 City of Chula Vista Proposed Budget Summary of Proposed Fiscal Year 2017‐18 Staffing Changes Department/Fund Program Position FTE Office Specialist (MYR/@Will) (1.00) Constituent Services Representative 1.00 Information Tech Support Specialist (2.00) Info Tech Technician 2.00 Fiscal & Management Analyst (1.00) Senior Management Analyst 1.00 Senior Procurement Specialist (1.00) Procurement Services Analyst 1.00 Fiscal Office Specialist (1.00) Senior Fiscal Office Specialist 1.00 Animal Care Officer (1.00) Animal Care Specialist 1.00 Senior Secretary (1.00) Administrative Secretary 1.00 Project Coordinator I(1.00) Economic Development Specialist I1.00 Conservation Specialist I(4.00) Conservation Specialist II 4.00 Conservation Conservation Specialist II 1.00 Economic Development Project Coordinator I(1.00) Administrative Services Manager 1.00 Associate Engineer 10.00 Assistant Engineer 1.00 Associate Land Surveyor 1.00 Assistant Director of Engineering 1.00 Engineering Technician II 2.00 Environmental Health Specialist 2.00 Management Analyst 1.00 Principal Civil Engineer 4.00 Public Works Inspector II 6.00 Secretary 1.00 Senior Administrative Se cretary 1.00 Senior Civil Engineer 6.00 Senior Engineering Technician 2.00 Council AdministrationCity Council (0.00) Transfer from Public WorksEngineering (46.00) Animal Care Information Technology Services (0.00)Reclassifications Reclassification Animal Care Facility (0.00) ReclassificationsEconomic Development (0.00) Budget & Analysis Purchasing Finance (0.00) 222017-05-23 Agenda Packet Page 251 FY2018 City of Chula Vista Proposed Budget Department/Fund Program Position FTE Senior Public Works Inspector 2.00 Survey Technician II 1.00 Traffic Devices Technician 3.00 Traffic Devices Technician Supervisor 1.00 Assistant Director of Engineering (1.00) Director of Engineering 1.00 Assistant Engineer (1.00) Associate Engineer 1.00 Police (5.00)Community Patrol Peace Officer 5.00 Administrative Services Manager (1.00) Associate Engineer (10.00) Assistant Engineer (1.00) Associate Land Surveyor (1.00) Assistant Director of Engineering (1.00) Engineering Technician II (2.00) Environmental Health Specialist (2.00) Management Analyst (1.00) Principal Civil Engineer (4.00) Public Works Inspector II (6.00) Secretar y (1.00) Senior Administrative Secretary (1.00) Senior Civil Engineer (6.00) Senior Engineering Technician (2.00) Senior Public Works Inspector (2.00) Survey Technician II (1.00) Traffic Devices Technician (3.00) Traffic Devices Technician Supervisor (1.00) Custodial Services Custodian (0.50) Senior Fiscal Office Specialist (1.00) Management Analyst 1.00 FA Admin Analyst II (1.00) FA Executive Director (1.00) FA Program Manager (1.00) Fleet Management (‐1.00) Central Garage Operations Equipment Mechanic (1.00) 0.50 Transfer from Public Works Engineering (continued) TOTAL CITYWIDE Fiscal Agent (FA) positions ‐ HIDTA and SD LECC Police Grants Fund (‐3.00) Transfer to EngineeringPublic Works (‐46.50) Engineering Administration Reclassification ReclassificationRecreation (0.00) 232017-05-23 Agenda Packet Page 252 FY2018 City of Chula Vista Proposed Budget SUMMARY OF FROZEN POSITIONS Due to continued fiscal constraints, the majority of prior fiscal year frozen (not funded) positions remain frozen. As part of the fiscal year 2017‐18 proposed budget the following departments had changes to their frozen positions. Administration – The Administration Department has funded 1.00 Assistant City Manager and froze 1.00 Deputy City Manager as part of the fiscal year 2017‐18 proposed budget. Finance – As the requirements of the department changed, there was a need to fund the frozen Budget and Analysis Manager. The proposed budget includes funding for the previously frozen 1.00 Budget and Analysis Manager and in its place has frozen 1.00 Fiscal and Management Analyst. The above changes have no net impact to the frozen positions within these departments from previous fiscal years. The fiscal year 2017‐18 proposed budget also includes the addition of 2.00 additional frozen positions as follows: Information Technology Services – The department has requested 1.00 Telecommunications Specialist and 1.00 Information Technology Technician be frozen as part of the department’s balancing measures. As funding becomes available the status of these positions will be reevaluated; recommended funding changes will be brought to Council for consideration mid‐year or through the budget development process. The fiscal year 2017‐18 proposed budget reflects 18.00 frozen positions; this is a net increase of 2.00 frozen positions when compared to the prior fiscal year. The frozen positions are summarized by department and fund on the following table. Summary of Fiscal Year 2017‐18 Frozen Positions Department/Fund Program Position FTE Administration Administration Deputy City Manager 1.00 Computer Operations Telecommunications Specialist 1.00 Micro‐Computers Information Technology Technician 1.00 Finance Budget and Analysis Fiscal & Management Analyst 1.00 Community Patrol Peace Officer 11.00 Street Crime/Gang Suppression Peace Officer 1.00 City Jail Detention Facility Manager 1.00 Police Dispatch Police Communications Systems Manager 1.00 18.00 TOTAL CITYWIDE Police Information Technology Services 242017-05-23 Agenda Packet Page 253 FY2018 City of Chula Vista Proposed Budget SUMMARY OF STAFFING CHANGES BY DEPARTMENT AND BARGAINING UNIT The following tables summarize the staffing changes occurring between the fiscal year 2016‐17 adopted budget and the fiscal year 2017‐18 proposed budget, by bargaining unit and by department. Summary of Staffing Changes by Bargaining Unit Bargaining Unit FY 16‐17 Adopted Staffing FY 16‐17 Mid Year Changes FY 17‐18 Changes FY 17‐18 Proposed Staffing % Change Unrepresented Professionals and Mid Managers 45.00 5.00 (1.00) 49.00 8.9% Executives 18.00 ‐ ‐ 18.00 0.0% Chula Vista Mid Managers and Professionals Association 73.75 (2.00) (1.00) 70.75 ‐4.1% Association of Chula Vista Employees 395.50 2.00 (0.50) 397.00 0.4% City Council 5.00 ‐ ‐ 5.00 0.0% International Association of Firefighters 126.00 ‐ ‐ 126.00 0.0% Peace Officer's Assocation 235.00 ‐ 5.00 240.00 2.1% Western Council of Engineers 29.00 1.00 ‐ 30.00 3.4% Senior Managers 31.00 1.00 (2.00) 30.00 ‐3.2% Confidential 26.00 2.00 ‐ 28.00 7.7% TOTAL 984.25 9.00 0.50 993.75 1.0% 252017-05-23 Agenda Packet Page 254 FY2018 City of Chula Vista Proposed Budget Summary of Staffing Changes by Department Department/Fund FY 16‐17 Adopted Staffing FY 16‐17 Mid Year Changes FY 17‐18 Changes FY 17‐18 Proposed Staffing % Change Administration 10.00 ‐ ‐ 10.00 0.0% Animal Care Facility 21.75 ‐ ‐ 21.75 0.0% City Attorney 14.00 ‐ ‐ 14.00 0.0% City Clerk 6.00 ‐ ‐ 6.00 0.0% City Council 14.00 ‐ ‐ 14.00 0.0% Development Services ‐ GF 20.00 ‐ ‐ 20.00 0.0% Economic Development 14.00 1.00 ‐ 15.00 7.1% Engineering and Capital Projects ‐ ‐ 46.00 46.00 100.0% Finance 28.00 ‐ ‐ 28.00 0.0% Fire 136.00 ‐ ‐ 136.00 0.0% Human Resources 16.00 ‐ ‐ 16.00 0.0% Information Technology Services 17.00 ‐ ‐ 17.00 0.0% Library 22.50 ‐ ‐ 22.50 0.0% Police 326.50 1.00 5.00 332.50 1.8% Public Works 162.50 ‐ (46.50) 116.00 ‐28.6% Recreation 17.00 ‐ ‐ 17.00 0.0% General Fund Total 825.25 2.00 4.50 831.75 0.8% Federal Grants Fund 2.00 ‐ ‐ 2.00 0.0% Fleet Management 10.00 ‐ (1.00) 9.00 ‐10.0% Police Grants Fund 39.00 7.00 (3.00) 43.00 10.3% Development Services Fund 50.00 ‐ ‐ 50.00 0.0% Advanced Life Support 1.00 ‐ ‐ 1.00 0.0% CV Housing 4.00 ‐ ‐ 4.00 0.0% Environmental Services Fund 7.00 ‐ ‐ 7.00 0.0% Sewer Fund 46.00 ‐ ‐ 46.00 0.0% Other Funds Total 159.00 7.00 (4.00) 162.00 1.9% CITYWIDE TOTAL 984.25 9.00 0.50 993.75 1.0% Other Funds 262017-05-23 Agenda Packet Page 255 CITY STAFF EMPLOYEESDEPARTMENT5-Year Position SummaryFY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18LEGISLATIVE/ADMINISTRATIVE14.0014.0014.00City Council14.0014.005.00 5.00 6.00City Clerk/Elections6.006.0013.00 13.00 14.00City Attorney14.0014.0013.00 14.00 17.00Administration10.0010.0017.00 17.00 17.00Information Technology Services17.0017.0015.00 15.00 16.00Human Resources16.0016.0028.00 28.00 27.00Finance28.0028.00105.00 106.00 111.00105.00TOTAL105.00DEVELOPMENT/MAINTENANCE20.5021.0021.00Animal Care Facility21.7521.750.00 0.00 0.00Economic Development14.0015.0019.50 20.25 20.25Development Services20.0020.000.00 0.00 0.00Engineering and Capital Projects0.0046.00163.00 163.00 164.50Public Works Operations162.50116.00203.00 204.25 205.75218.75TOTAL218.25PUBLIC SAFETY319.00 321.50 322.50Police326.50332.50136.00 136.00 136.00Fire136.00136.00455.00 457.50 458.50468.50TOTAL462.50COMMUNITY SERVICES17.0017.0017.00Recreation17.0017.0021.50 21.50 22.50Library22.5022.5038.50 38.50 39.5039.50TOTAL39.50801.50806.25814.75831.75825.25GENERAL FUND SUBTOTAL272017-05-23 Agenda Packet Page 256 CITY STAFF EMPLOYEESDEPARTMENT5-Year Position SummaryFY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18OTHER FUNDS1.001.001.00Advanced Life Support1.001.0044.50 45.50 44.50Development Services50.0050.0037.00 40.00 36.00Police Grant Funds/California Border Alliance Group (CBAG)39.0043.001.00 2.00 3.00Federal Grants Fund2.002.000.00 0.00 0.00American Renewal & Reinvestment Act0.000.005.00 5.00 6.00Environmental Services7.007.004.00 4.00 4.00Housing Authority4.004.001.00 0.00 0.00Successor Agency0.000.008.00 10.00 10.00Fleet Management10.009.001.00 1.00 0.00Transit0.000.0046.00 46.00 46.00Sewer46.0046.000.00 0.00 0.00Redevelopment Agency0.000.00148.50 154.50 150.50162.00TOTAL159.00GRAND TOTAL (does not include hourly staffing)950.00 960.75 965.25993.75984.25282017-05-23 Agenda Packet Page 257 FY2018 City of Chula Vista Proposed Budget GENERAL FUND General Fund Expenditure Summary General Fund Revenue Summary General Fund Net Cost Department Summary Reports 292017-05-23 Agenda Packet Page 258 302017-05-23 Agenda Packet Page 259 FY2018 City of Chula Vista Proposed Budget Chula Vista General Operating Budget in thousands(000) FY 15‐16 Actual Expenditures $143,769 FY 16‐17 Adopted Budget $146,421 FY 17‐18 Proposed Budget $166,587 % Change FY 16‐17 to FY17‐18 13.7% General Fund Expenditure Summary The General Fund Proposed Operating Budget for fiscal year 2017‐18 totals $166.6 million, which reflects an increase of $20.1 million (13.7%) when compared to the fiscal year 2016‐17 adopted budget. Capital improvement projects will be funded by the Measure P commitment. The General Fund Proposed Budget is balanced. The City defines a budget as balanced when the amount of budgeted expenditures is equal to or less than the amount of budgeted revenues plus other available sources. The General Fund includes funding for programs and services supported by the City Council in previous fiscal years. The fiscal year 2017‐18 Proposed Budget sustains previous service levels and provides funding for 5.0 new Peace Officers within the Police Department’s Community Patrol division. The City’s General Fund reflects positive growth in its major revenue sources. However, during the development of the baseline budget, the assumed revenue growth was not sufficient to close a $4.3 million budget gap that was identified in the initial stages of the budget development process. This gap required various departmental budget reductions and identification of additional revenue sources in order to balance the fiscal year 2017‐18 Proposed Budget. Despite the challenges of having to balance a $4.3 million budget gap, fiscal year 2017‐18 will mark the first full fiscal year that City residents will benefit from the infrastructure projects funded as a result of the passage of Measure P. Measure P – a temporary, ten‐ year, half‐cent sales tax funding is dedicated to funding high priority infrastructure, fleet replacement, technology and other capital equipment resources. The fiscal year 2017‐18 Proposed Budget contains $16.3 million of additional Measure P funding which comprises the majority of the increase in the General Fund budget for fiscal year 2017‐18. A comparison of the fiscal year 2017‐18 proposed budget, the fiscal year 2016‐17 adopted expenditures, and the fiscal year 2015‐16 actual expenditures are summarized in the following table. General Fund Expenditure Summary In Thousands (000) Description FY 2015‐16 Actual FY 2016‐17 Adopted FY 2017‐18 Proposed Change Personnel Services 112,647$ 118,623$ 123,556$ 4,933$ Supplies and Services 16,322$ 14,114$ 14,214$ 100$ Other Expenses 703$ 559$ 642$ 83$ Capital 505$ 1,595$ 150$ (1,445)$ Transfers Out 6,775$ 5,999$ 22,943$ 16,944$ Non‐CIP Project Expenditures 359$ 19$ 19$ ‐$ Utilities 4,850$ 5,512$ 5,063$ (449)$ Total Operating Budget 142,161$ 146,421$ 166,587$ 20,166$ CIP Project Expenditures 1,607$ 40$ ‐$ (40)$ Total General Fund Budget 143,768$ 146,461$ 166,587$ 20,126$ 312017-05-23 Agenda Packet Page 260 FY2018 City of Chula Vista Proposed Budget MAJOR EXPENDITURE CHANGES BY CATEGORY The Transfers Out category accounts for the largest increase in the General Fund at $16.9 million. This increase is largely due to the $16.3 million transfer for the voter approved Measure P Sales Tax revenues. The General Fund serves as a pass‐ through for these revenues and this expenditure represents the transfer of funds to the Measure P Sales Tax Fund. These revenues will be used to fund specific infrastructure projects and equipment purchases throughout the City. The Transfers Out category also includes a $0.8 million increase to the Public Liability fund as a result of increased claims activity. These increases are partially offset with a decrease in a transfer out for the capital lease of fire apparatus, which will be paid from Measure P funding. The Personnel Services category reflects an increase of $4.9 million and assumes a 2% increase for estimated inflation. A breakdown of the personnel services category changes include: • $2.8 million increase in budgeted Salaries ‐ this increase reflects the annualized cost of wage increases approved by the City Council during fiscal year 2016‐17, an estimated 2% wage inflation for all employee groups in fiscal year 2017‐18, step increases, and the addition of 4.5 FTE. • $1.3 million in Worker’s Comp charges, based on increased costs in the Workers Compensation Fund. • A $0.7 million increase for retirement costs which reflects the increased contribution rates based on the June 30, 2015 valuation report from CalPERS. • The proposed budget reflects a $0.5 million increase in budgeted overtime when compared to prior year adopted budget. This increase is due to the annualized cost of approved wage increases, estimated wage inflation, and an increase in the Police Departments reimbursed overtime to bring it in line with anticipated actuals. • The above increases were offset with a net increase of $0.4 million in budgeted salary savings. The fiscal year 2017‐18 budget reflects $2.2 million in budgeted ongoing ($0.8) million and ($1.4) million of one‐time salary savings. One‐time salary savings was submitted by various departments as part of their department budget reductions. The Supplies and Services expense category increased by $0.1 million when compared to the fiscal year 2016‐17 budget. Overall, the Supplies and Services budget remained relatively unchanged from the fiscal year 2016‐17 adopted budget as the changes to this category were offsetting, reflecting efforts to fund mandatory cost increases for fiscal year 2017‐18. Among the changes made was a $0.6 million increase for various contractual obligations that included the following: • NPDES storm drain maintenance costs • Additional park maintenance costs for Stylus Park and Orange Park • Increased street sweeping costs • Increased information technology security services • Increased regional radio communication charges • Additional capture services from the City’s sales tax consultant for monitoring Measure P sales tax collections This increase was offset by reductions in other Supplies and Services expenditures that were necessary in order to balance in the budget. These reductions are as follows: • A $0.15 million decrease in fleet maintenance charges • A $0.1 million decrease in attorney services • A $0.1 million decrease in software maintenance fees • $0.1 million decrease in construction materials, building and automotive maintenance services The Other Expenses category is increasing by $0.1 million for the City’s share of the cost related to the Otay Valley Regional Park and credit card service charges. The Utilities expense category has been decreased by a net $0.4 million when compared to the fiscal year 2016‐17 adopted budget. Departmental Utility budgets have been adjusted to reflect projected expenditures for fiscal year 2017‐18 based on 322017-05-23 Agenda Packet Page 261 FY2018 City of Chula Vista Proposed Budget expected rate increases and projected savings as a result of energy efficiency projects. The Capital expenditures category reflects a decrease of $1.4 million due to the one‐time acquisition and outfitting costs for two fire engines budgeted in the previous fiscal year but not carried forward into the fiscal year 2017‐18 budget. General Fund Expenditures by Category Fiscal Year 2017‐2018 Note: Personnel Services accounts for 74.2% of General Fund expenditures in the fiscal year 2017‐18 proposed budget. General Fund Expenditures History by Category Fiscal Year 2013 through 2017 Health Benefits, 7% Other Personnel Expense, 4% Supplies and Services, 9% Other Expenses, Less than 1% Capital, Less than 1% Transfers Out, 14% CIP Project Expenditures, 1% Non‐CIP Project Expenditures, Less than 1%Utilities, 3% Salaries, 42% Hourly Wages, 2% Overtime, 4% Retirement Benefits, 15% $‐ $50 $100 $150 $200 FY14 Actual FY15 Actual FY16 Actual FY17 Adopted FY18 ProposedMillions Personnel Services Supplies and Services Other Expenses Capital Transfers Out CIP Project Expenditures Non‐CIP Project Expenditures Utilities 332017-05-23 Agenda Packet Page 262 FY2018 City of Chula Vista Proposed Budget General Fund Expenditure by Department Fiscal Year 2017‐2018 Note: The chart above does not reflect net cost of each department, only their expenditure allocations. The following chart reflects the “Other” department costs included in the previous chart that includes the $42.7 million of the General Fund department budget expenditures. General Fund Expenditure by Department (Other Department Detail – totals $42.7 million) Fiscal Year 2017‐2018 Note: The chart above does not reflect net cost of each department, only their expenditure allocations. Fire, 17% $27.8M Public Works Operations, 11% $17.9M Police, 32% $53.3M Non‐Departmental, 15% $24.9M Other ‐reflected on chart below, 26% $42.7M Boards and Commissions, Less than 1% City Clerk, 1% City Council, 1% Human Resources, 2% Development Services, 2% Economic Development, 1% Engineering & Capital Projects, 5% City Attorney, 2%Administration, 1% Animal Care Facility, 2% ITS, 2% Library, 2% Finance, 2% Recreation, 3% 342017-05-23 Agenda Packet Page 263 FY2018 City of Chula Vista Proposed Budget STAFFING LEVELS As revenue levels have improved, the City has continued the trend of slowly recovering its staffing levels previously reduced as a result of the Great Recession. Since fiscal year 2013‐14, the City has been able to achieve a 4.6% increase in staffing. This increase in staffing is over all funds, and manages to slightly exceed a 3.7% population increase over the same period of time. Staffing for Community Services and the Development and Maintenance Services categories have grown by 2.6% and 7.1% respectively from 2013‐14. Staffing for the Legislative and Administrative service category has remained flat with no change over the same period of time. Public Safety staffing levels have increased by 4.1% – this increase includes the addition of various grant funded positions. Budget constraints necessitated the net elimination of 331.4 full time equivalent (FTE) positions from the City’s peak employment of 1,263.75 FTEs during fiscal year 2006‐07. The last major reduction occurred in 2011 and was carried forward into the fiscal year 2012‐13 budget. As shown in the following graph, the number of FTEs per thousand per capita has remained relatively unchanged since fiscal year 2013‐14. Staffing Level Fiscal Year 2013‐2014 to Fiscal Year 2017‐2018 Council Adopted Budget FY 13‐14 FY 14‐15 FY 15‐16 FY16‐17 FY17‐18 % Chg. Legislative and Administrative 105.00 106.00 111.00 105.00 105.00 0.0% Development and Maintenance 312.50 315.75 316.25 335.25 334.75 7.1% Public Safety 494.00 500.50 498.50 504.50 514.50 4.1% Community Services 38.50 38.50 39.50 39.50 39.50 2.6% Total City Staff 950.00 960.75 965.25 984.25 993.75 4.6% City of Chula Vista Staffing (FTEs) Compared to FTEs per Thousand Residents 3.7 3.7 3.7 3.7 3.8 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 0 200 400 600 800 1,000 1,200 FY13‐14 FY14‐15 FY15‐16 FY16‐17 FY17‐18 FTE/1,000FTETotal FTE's FTE's/1000 352017-05-23 Agenda Packet Page 264 FY2018 City of Chula Vista Proposed Budget SALARY ADJUSTMENTS During the economic recession the City’s bargaining groups worked with City management to reach new agreements that reduced personnel costs in an effort to balance the budget. The adjustments to employee compensation included wage concessions and pension reform. The City granted salary increases to its employee bargaining groups as the City began to see revenue improvements. However, ongoing increases in retirement and health premium costs (discussed in the following sections), have strained the City’s ability to provide wage increases to its employees. The proposed budget includes funding for the annualized costs of negotiated salary increases approved for employee groups during the 2016‐17 fiscal year. The proposed budget also reflects an estimated wage inflation of 2% for all employee groups for fiscal year 2017‐18. At the time of the development of the proposed budget, the City was in negotiations with the Police Officers’ Association and the International Association of Firefighters. Agreements were reached with these groups during the final development of the budget. Any additional impact as a result of the agreements reached with these two labor groups and any agreements attained with the other City’s labor groups after adoption of the budget will be brought forward for Council approval. RISING RETIREMENT COSTS The increase in retirement costs driven by rising CalPERS contributions is a significant budgetary challenge facing the City. The payments estimated to be made to the retirement system equal 16.2% of the City’s General Fund in the fiscal year 2017‐18 proposed budget. Increases in CalPERS contributions can be attributed to several factors. In the early 2000’s the City approved enhanced formula benefits for all City employees. During the economic downturn, the City approved an early retirement incentive to encourage employees to retire thereby reducing the number of layoffs, but this came at the expense of increasing the City’s payment to CalPERS. The impact of retirement cost increases were partially offset through negotiations with City’s bargaining groups that resulted in the implementation of pension reform. Under the negotiated pension reform, employees agreed to pay their share of pension costs and thereby provided a one‐time base level of employee retirement payments. However, this action did not reduce future cost increases. During this same time period, CalPERS experienced significant investment losses. Over the last several years, CalPERS has made a series of changes that have resulted in higher contribution rates. Prior to fiscal year 2005‐06, the CalPERS investment pool assumed a rate of return of 8.25% and any market gains (or losses) less than that amount would significantly affect the City’s overall contribution rate. In fiscal year 2005‐06, CalPERS adjusted their investment return assumption to 7.75%. In 2012, the CalPERS Board of Administration approved a recommendation to lower the rate of investment return assumption from 7.75% to 7.50%. On December 21, 2016, the CalPERS Board of Directors decided to lower the rate of return assumption from 7.5% to 7.0% beginning in fiscal year 2018‐19. CalPERS is implementing this change for the following reasons: • Strengthening long‐term sustainability of the pension fund • Reducing negative cash flows; additional contributions will help to offset the cost to pay pensions • Reducing the long‐term probability of funded ratios falling below undesirable levels • Improving the likelihood of CalPERS investments earning the assumed rate of return • Reducing the risk of contribution increases in the future from volatile investment markets • Allows for reduced portfolio risk consistent with the new risk mitigation policy In addition, as outlined in their June 15, 2015 valuation report to the City, beginning in fiscal year 2017‐18, CalPERS will collect employer contributions toward the plan’s unfunded liability as dollar amounts instead of the prior method of a contribution rate. This change will address potential funding issues that could arise from a declining payroll or reduction in the number of active members in the plan. Funding the unfunded liability as a percentage of payroll could lead to the underfunding of the plans. Although employers will be invoiced at the beginning of the fiscal year for their unfunded liability payment, the plan’s normal cost contribution will continue to be collected as a percentage of payroll. 362017-05-23 Agenda Packet Page 265 FY2018 City of Chula Vista Proposed Budget The CalPERS Board of Administration also adopted a Risk Mitigation Policy which is designed to reduce funding risk over time. The policy establishes a mechanism whereby CalPERS investment performance that significantly outperforms the discount rate triggers adjustments to the discount rate, expected investment return and strategic asset allocation targets. A minimum excess investment return of 4% above the existing discount rate is necessary to cause a risk mitigation event. The policy has no impact on the current year valuation results but is expected to have an impact in future years. The budgetary impacts caused by the increased employer contribution rates for retirement costs due to lower CalPERS investment returns and corrective policy changes, have been significant and will continue to challenge the City in future years. To follow is a series of charts related to pension costs. The first chart depicts the actual market rates of return for the CalPERS investment portfolio relative to the assumed 7.5% rate of return. This chart will be restructured in future fiscal years to display actual rates of return for the CalPERS assumed rates as they are updated. The second chart reflects actual CalPERS costs in the General Fund for fiscal years 2014 to the 2016‐17 Adopted budget and the 2017‐18 Proposed Budget cost. The final chart reflects historical CalPERS contributions illustrating the employer (City) contribution rates from fiscal years 2003‐04 to 2016‐17 and projected rates for fiscal years 2017‐18 through 2021‐22. CalPERS Historical Market Value Rates of Return Relative to Assumed Investment Return of 7.5% ‐30.0% ‐22.5% ‐15.0% ‐7.5% 0.0% 7.5% 15.0% 22.5% 30.0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 372017-05-23 Agenda Packet Page 266 FY2018 City of Chula Vista Proposed Budget Retirement Costs (General Fund) Fiscal Years 2013‐14 to 2017‐18 CalPERS Employer Contribution Rates Fiscal Years 2004‐05 to 2022‐23 Projected Notes: 1. Reflects Employer Contribution. The actual employer contribution is higher due to Employer Paid Member Contributions (EPMC) ranging from 1.3% to 4.2%, and for applicable years an additional 8% and 9% for the Employer Paid Member Contribution (Employee Contribution). 2. Projected rates (FY 2018 through FY 2022), based on Bartel Associates, LLC report dated 02/02/2017. $17.9 $19.3 $20.9 $23.8 $24.5 $‐ $2.5 $5.0 $7.5 $10.0 $12.5 $15.0 $17.5 $20.0 $22.5 $25.0 $27.5 FY13‐14 FY14‐15 FY15‐16 FY16‐17 Adopted FY17‐18 ProposedMillions Fiscal Year 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Miscellaneous Public Safety 382017-05-23 Agenda Packet Page 267 FY2018 City of Chula Vista Proposed Budget HEALTH CARE COSTS Flex/Health insurance represents 7.4% of the total fiscal year 2017‐18 General Fund expenditure budget and accounts for the health care costs for permanent employees. Fiscal year 2017‐18 shows a slight decrease compared to the prior fiscal year adopted budget. In fiscal year 2016‐17 the anticipated increase in healthcare premiums was estimated at 15%. The actual increase was lower than this estimation as a result of the City’s switch in health insurance providers from AETNA to United Healthcare UHC) in 2017. This is carried forward into the first half of fiscal year 2017‐18, which results in the $0.1 million decrease in comparison to the prior year adopted budget. The fiscal year 2017‐ 18 proposed budget estimates a 10% increase in healthcare premiums in calendar year 2018. To follow are charts and tables reflecting the increased expenditures related to flex/health insurance. The first chart illustrates the actual Flex/Health insurance costs in the General Fund for fiscal years 2014 to 2016, the adopted budget for fiscal year 2016‐17 and the proposed budget for fiscal year 2017‐18. Actual Flex/Health insurance costs have increased annually and represent an ongoing challenge that the City will continue to address in future budgets. The subsequent table displays Flex Allotments by bargaining group from calendar year 2013 to calendar year 2017. Flex Allotments are the amounts provided by the City for employees to use towards the purchase of their health benefits. This allotment is negotiated between the City and each bargaining group. As illustrated by the table, costs to the City in the area of flex/health insurance have increased significantly since calendar year 2013. Flex allotment costs for 2018 were not available at the time the proposed budget was written. Flex/Health Insurance Costs (General Fund) Fiscal Years 2013‐14 to 2017‐18 $10.1 $10.3 $10.2 $12.5 $12.4 $‐ $2.5 $5.0 $7.5 $10.0 $12.5 $15.0 FY13‐14 FY14‐15 FY15‐16 FY16‐17 Adopted FY17‐18 ProposedMillions Fiscal Year 392017-05-23 Agenda Packet Page 268 FY2018 City of Chula Vista Proposed Budget Flex Allotment Increases by Bargaining Group Calendar Year 2013 to Calendar Year 2017 (1) Flex allotments remain at the 2013 amounts for all Employee Only members within the following employee groups: Confidential, Executive, Mid Managers and Professionals, Senior Managers, Western Council of Engineers, and Mayor & Council. The public safety bargaining group is not included in the preceding table as their negotiated benefits differ from the other bargaining groups. The City pays the full premium for Kaiser HMO Health Plan and Cigna DHMO pre‐paid dental plan for the employee and any eligible dependents of the public safety bargaining group members. Previously public safety employees who chose a non‐Kaiser HMO coverage paid a flat annual amount regardless of the number of dependents covered. However, the new labor agreements reached with public safety employees stipulate that public safety employees who choose a non‐Kaiser HMO coverage will be assuming a share of the cost difference between the Kaiser premium and the non‐Kaiser HMO coverage. For example, effective January 1, 2018, for any Police Officer’s Association (POA) members enrolling in a non‐Kaiser HMO, the City will pay 2/3 of the premium difference, less $50 per month. International Association of Firefighters (IAFF) members hired on or after April 25, 2017 enrolling in any non‐Kaiser plan are responsible to pay any amount greater than the cost of the Kaiser Plan. Employees choosing the Cigna DPPO preferred provider plan are responsible for any additional costs over and above the Cigna DHMO pre‐paid plan. Due to the annual increase of flex/health insurance costs the amount the City has paid in insurance premiums have risen. As illustrated in the table below, medical premiums the City pays on behalf of public safety employees have increased by between 4% and 30% (depending on medical group elections) since calendar year 2013. Due to a switch in dental care providers, the City has seen a decrease of 14% to 15% in dental premiums over the same period of time. The following table presents the range of benefits the City provides in medical and dental insurance to public safety employees and their dependents. City Provided Public Safety Flex Benefit Ranges Calendar Year 2013 to Calendar Year 2017 (1)Dental insurance for public safety employees is fully compensated for at the DHMO level. Employees may choose PPO and pay the variance between DHMO and PPO. Bargaining Group 2013 2014 (1)2015 2016 2017 2013‐2017 % Change Confidential 12,386$ 13,074$ 13,524$ 13,682$ 13,760$ 11.1% Chula Vista Employees Association 11,886$ 12,574$ 13,024$ 13,182$ 13,260$ 11.6% Executive 15,162$ 15,850$ 16,300$ 16,458$ 16,536$ 9.1% Mid Managers and Professionals 12,762$ 13,450$ 13,900$ 14,058$ 14,136$ 10.8% Senior Managers 13,762$ 14,450$ 14,900$ 15,058$ 15,136$ 10.0% We stern Council of Engineers 12,762$ 13,450$ 13,900$ 14,058$ 14,136$ 10.8% Mayor & Council 15,162$ 15,850$ 16,300$ 16,458$ 16,536$ 9.1% FLEX Allotment Increases by Bargaining Unit Benefit 2013 2014 2015 2016 2017 2013‐2017 % Change Medical $5,436 ‐ $16,752 $5,988 ‐ $18,180 $5,784 ‐ $19,848 $5,568 ‐ $20,628 $6,408‐$19,776 4% ‐ 30% Dental (1)$168 ‐ $396 $168 ‐ $396 $180 ‐ $432 $180 ‐ $432 $192‐$456 (14%) ‐ (15%) Public Safety FLEX Benefit Ranges 402017-05-23 Agenda Packet Page 269 FY2018 City of Chula Vista Proposed Budget Insurance Premiums Kaiser and AETNA/UHC insurance premiums have increased an average of 3.9% and 4.6% per year respectively since the beginning of calendar year 2013. As noted in the table below, Kaiser premiums have increased a total of 19.7% during this time while AETNA/UHC premiums have increased 24.5% over the same period. Premiums decreased by 3.8% in 2017 as the City switched its insurance provider from AETNA to UHC. The annual budget for Flex/Health Insurance has increased from $10.1 million in fiscal year 2013‐14 to $12.4 million in the fiscal year 2017‐18 Proposed Budget. Recent discussions with health care professionals indicate these high trends in health care costs are likely to continue for the foreseeable future. For fiscal year 2017‐18, the proposed budget reflects an anticipated premium increase of 10% based on the preliminary information provided by the health care providers. The following table reflects the changes in health care rate premiums the City has experienced from January 2013 to January 2017. The final rate premium that will be in effect for January 2018 will not be known until late summer or early fall. Premium Increases by Health Care Provider Calendar Year 2013 to 2017 Date of Increase Kaiser AETNA/UHC January 2013 1.6% 5.5% January 2014 10.2%8.5% January 2015 ‐3.4% 8.9% January 2016 ‐3.8% 3.8% January 2017 15.1%‐3.8% Annual Average Premium Increase 3.9% 4.6% Total Premium Increase (January 2013 –January 2017)19.7% 24.5% Total increase reflects average changes in premium costs from 2013‐2017 for Kaiser and AETNA/UHC 412017-05-23 Agenda Packet Page 270 422017-05-23 Agenda Packet Page 271 FY2018 City of Chula Vista Proposed Budget Chula Vista General Operating Budget in thousands(000) FY 15‐16 Actual Revenues $145,685 FY 16‐17 Adopted Budget $146,421 FY 17‐18 Proposed Budget $166,587 % Change FY 16‐17 to FY17‐18 13.7% *Excludes CIP Revenues General Fund Revenue Summary The estimated General Fund revenues for fiscal year 2017‐18 General Fund total $166.6 million. This reflects an increase of $20.1 million (13.7%) when compared to the FY 2016‐17 adopted budget revenues. This increase is mainly due to the $16.3 million in Measure P Sales Tax revenues anticipated to be collected as part of the voter approved ½ cent sales tax increase. The General Fund is a pass‐through for these revenues, which will ultimately be recognized as a Transfer Out to the 2016 Measure P Sales Tax Fund. The following table compares the fiscal year 2017‐18 revenues to the fiscal year 2016‐17 adopted budget revenues. CIP related revenues can vary significantly from year and are reported separately on the table below. General Fund Revenues In Thousands (000) Category FY 2015‐16 Actual FY 2016‐17 Adopted FY 2017‐18 Estimated Change Sales Tax 33,317$ 32,350$ 49,255$ 16,905$ Property Taxes 30,220$ 31,175$ 33,621$ 2,446$ Motor Vehicle License Fees 18,935$ 19,692$ 20,844$ 1,152$ Charges for Services 6,714$ 6,204$ 7,211$ 1,007$ Transient Occupancy Taxes 3,827$ 3,655$ 4,316$ 661$ Licenses and Permits 1,165$ 1,161$ 1,364$ 204$ Franchise Fees 11,710$ 11,796$ 11,969$ 173$ Development Revenue 1,210$ 1,036$ 1,205$ 169$ Other Local Taxes 2,792$ 2,448$ 2,598$ 150$ Interfund Reimbursements 10,411$ 9,752$ 9,823$ 72$ Fines, Forfeitures & Penalties 1,249$ 1,021$ 1,075$ 55$ Other Agency Revenue 2,765$ 2,035$ 2,026$ (9)$ Police Grants 851$ 854$ 758$ (97)$ Use of Money and Property 2,880$ 2,732$ 2,421$ (310)$ Utility Users Taxes 5,844$ 6,380$ 5,860$ (520)$ Transfers From Other Funds 9,838$ 11,937$ 11,207$ (731)$ Other Revenues 1,925$ 2,194$ 1,034$ (1,160)$ Total Operating Budget 145,654$ 146,421$ 166,587$ 20,166$ Capital Projects 31$ 40$ ‐$ (40)$ Total General Fund 145,685$ 146,461$ 166,587$ 20,126$ 432017-05-23 Agenda Packet Page 272 FY2018 City of Chula Vista Proposed Budget MAJOR REVENUE CHANGES BY CATEGORY Sales Tax – When compared to the prior fiscal year, Sales Tax revenues for fiscal year 2017‐18 are projected to increase by $16.9 million. This increase mainly reflects the $16.3 million in projected Measure P Sales Tax revenues anticipated to be collected as part of the voter approved ½ cent sales tax increase. The General Fund is a pass‐through for these revenues; these funds will ultimately be recognized as a Transfer Out to the 2016 Measure P Sales Tax Fund resulting in no net fiscal impact to the General Fund. Aside from Measure P revenues, Sales Tax is projected to increase by approximately 2% or $0.6 million in fiscal year 2017‐18. Property Taxes – This category reflects an increase of $2.4 million (7.8%) in comparison to prior year adopted budget. When compared to the most recent fiscal year 2016‐17 quarterly projections, property taxes are trending higher than budgeted due to better than estimated assessed valuation for fiscal year 2016‐17 and greater Redevelopment Property Tax Trust Fund (RPTTF) allocations. The trend is anticipated to continue and a total 4.5% increase in assessed valuation is projected in fiscal year 2017‐18. In addition to this increase in assessed valuation, the fiscal year 2017‐18 proposed budget also includes an estimated $0.7 million increase for an anticipated loan repayment from the redevelopment agency. Motor Vehicle License Fees – This category reflects an increase of $1.2 million in the Motor Vehicle License In‐Lieu revenue. These revenues also reflect a 4.5% increase in assessed valuation. Charges for Services – Revenues within this category are anticipated to increase by $1.0 million when compared to fiscal year 2016‐17 adopted budget. Major changes in this category include the following: • $376,000 increase in Police Reimbursements • $194,000 increase in City Staff Time and Cost Recovery reflected in various departments • $169,000 increase in staff time reimbursements for development related projects • $120,000 increase in Passport Fees • $112,000 increase in Fire Construction Fees Transient Occupancy Taxes (TOT) – Transient occupancy tax revenues are projected to increase by $0.7 million from the fiscal year 2016‐17 adopted budget. This increase reflects a base increase of 1% and the addition of 1 new hotel in Eastern Chula Vista, which is anticipated to open in fiscal year 2017‐18. These revenue increases are partially offset by the decreases in the following revenue categories: Other Revenues – This category reflects a decrease of $1.2 million. This decrease is attributed to the elimination of revenues associated with the financing of two fire engines approved by City Council on November 17, 2015; the fiscal year 2017‐18 budget reflects the elimination of these one‐time revenues. Transfers from Other Funds – This category reflects a net decrease of $0.7 million when compared to the fiscal year 2016‐17 adopted budget. This change reflects a decrease of $0.8 million for a one‐ time budgeted transfer to the General Fund from the Public Facilities Development Impact Fee (PFDIF) for a loan repayment. This category also reflects an increase of $0.1 million in a transfer in from the Chula Vista Municipal Golf Course fund for revenues associated with the City’s golf course that was previously budgeted as rental revenues. Utility Users Tax (UUT) – UUT revenues are estimated at $0.5 million lower than the prior year adopted budget. The most recent fiscal year 2016‐ 17 quarterly projections estimate that the City will receive approximately $5.9 million in UUT in fiscal year 2016‐17; this revenue category is projected to fall short of budget by approximately $0.5 million. The projection for fiscal year 2017‐18 is consistent with the projected revenues for fiscal year 2016‐17. The following charts provide a summary view of the major General Fund revenue sources 442017-05-23 Agenda Packet Page 273 FY2018 City of Chula Vista Proposed Budget General Fund Revenues by Category Fiscal Year 2017‐2018 Note: Other Revenues include the following categories: Development Revenue, Other Agency Revenue, Other Local Taxes, Other Revenues, Use of Money & Property, Licenses and Permits, Police Grants, and Fines, Forfeitures & Penalties, CIP, and Other Revenue. Historical and Estimated General Fund Revenue Sources Fiscal Year 2010‐2011 through 2017‐2018 Property Taxes, 20.2% Motor Vehicle License Fees, 12.5% Transfers from Other Funds, 6.7% Interfund Reimbursements, 5.9%Franchise Fees, 7.2% Charges for Services, 4.3% Utility Users Tax, 3.5% Other Revenues, 7.5% Sales Tax, 29.6% Transient Occupancy Taxes, 2.6% $‐ $50 $100 $150 $200 FY 12 Actual FY 13 Actual FY 14 Actual FY15 Actual FY16 Actual FY17 Adopted FY18 ProposedMillions Property Taxes Sales Tax Franchise Fees Utility Users Taxes TOT Other Local Taxes Development Rev.Licenses & Permits Fines Forfeitures & Penalties Use of Money & Property Motor Vehicle Licenses Police Grants Other Agency Revenue Charges for Services Interfund Reimb.Other Revenues CIP Related Transfers In 452017-05-23 Agenda Packet Page 274 FY2018 City of Chula Vista Proposed Budget MAJOR REVENUE SOURCES The following is a description of the City’s major revenue sources along with a brief discussion of the trends impacting these revenues for the fiscal year 2017‐18. Sales Tax With the approval of Measure P, the City receives 1.5% of sales tax revenue applied to all taxable retail sales occurring within the City limits. In addition, Measure P will produce additional sales taxes on vehicles purchased outside of City limits by Chula Vista residents. Chula Vista voters approved Measure P – a temporary, ten‐year, half‐cent sales tax to fund high priority infrastructure needs. Collection of the sales tax began on April 1, 2017. The sales tax is projected to raise $178 million over the ten year period. The General Fund will serve as a pass‐through for these revenues; these funds will ultimately be recognized as a Transfer Out to the 2016 Measure P Sales Tax Fund. There is no net fiscal impact to the General Fund as a result of these new sales tax revenues. Sales tax revenues are collected at the point of sale and remitted to the State Board of Equalization. It is collected at a rate of 8.25% for the City of Chula Vista. The sales tax revenues are then allocated based on the following rates: State General Fund (includes K‐ 12/Community Colleges) 3.9375% Local Jurisdiction (City or County of place sale/use) (City Share) 1.0000% City Transaction Tax (Measure P) 0.5000% Public Safety (Prop 172) 0.5000% County Realignment (Mental Health/Welfare/Public Safety) 1.5625% Countywide Transportation Fund 0.2500% San Diego County Regional Transportation Commission (TransNet) 0.5000% Total Sales Tax Rate – Chula Vista 1 8.2500% 1 Total sales tax rates will vary by City due to local sales tax initiatives. For example, National City’s sales tax rate is 8.75% due to voter approved increase of 1% funding public services. Sales tax revenue is highly sensitive to economic conditions, and reflects the factors that drive taxable sales, including the levels of unemployment, consumer confidence, per‐capita income, and business investment. Sales tax revenue is the City’s largest discretionary revenue source, accounting for 29.6% of total revenue for the General Fund in the fiscal year 2017‐18 proposed budget – this includes Measure P revenues. Consumer spending has slowly increased since the economic recession. The positive trend is expected to continue in fiscal year 2017‐18 and Sale Tax revenue is estimated at $32.9 million (net of Measure P revenues) in the proposed budget. This is a change of approximately 2% or $0.6 million when compared to the fiscal year 2016‐17 Council Adopted Budget. With the addition of Measure P revenues, Sales Tax revenues for fiscal year 2017‐18 total $49.3 million. The graph below illustrates the decrease in Sales tax revenue, due to the economic recession, and the slow ascent to pre‐recession levels. City of Chula Vista Sales Tax Revenues Fiscal Year 2009 – Fiscal Year 2018 Note: Fiscal year 2017‐18 anticipated Sales Tax revenues include estimated Measure P Sales Tax revenues not included in prior years. A matter that is greatly influencing Sales Tax revenues is Online Retail sales versus traditional Brick & Mortar Store sales. With the rise in social networking and growth in the use of mobile devices, the general public has become more comfortable with online purchasing. E‐Commerce has substantially altered the Sales Tax base, repositioning revenues from point of sale (dedicated City revenues) to County and State Pools, which is allocated amongst jurisdictions. The escalation of online retail shopping has been apparent since 2015; this shift has continued to occur since this time. $‐ $10 $20 $30 $40 $50 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 (CA) FY18 (Est.)Millions462017-05-23 Agenda Packet Page 275 FY2018 City of Chula Vista Proposed Budget Taxable Sales Per Capita Notes: 1. Based on 4th Quarter 2016 Taxable Sales 2. Chula Vista Ranks 15th out of 18 cities in San Diego County. 3. Prior budget documents reflected Sales Tax Per Capita information, which changes the scale of the presentation presented above but does not change the City’s standing when compared to other cities. Chula Vista also continues to be challenged in the generation of taxable sales per capita when compared to other County cities. As noted on the above chart, taxable sales per capita for the City is only 2,868 while Del Mar has the highest taxable sales per capita at a rate of $9,734. This comparison indicates that the City’s residents spend a high percentage of their retail dollars elsewhere. The City of Chula Vista continues to pursue development opportunities that have the potential to positively impact revenue for the City. The City has adopted a program that would increase the viability of obtaining financing for commercial, industrial and high density residential development projects located in the Western area of the City. The City approved an agreement for the development of a new BMW dealership within the Chula Vista AutoPark and recently a new Nissan dealership opened. In Eastern Chula Vista the development of the Eastern Urban Center (Millenia) is moving forward and a developer purchased and is processing the construction documents through the City for the development of 350,000 square feet of new office space which would increase employment opportunities in the City. While all of these opportunities could provide more employees and residents to the City that would shop and dine in these areas, the projects are several years away from actually being built and occupied. In the short term, the City continues to focus on providing a single point of contact and process their applications on‐time for new businesses looking to open in Chula Vista as well as assist existing businesses with whatever needs they might have to sustain and grow their establishments. Property Tax Property tax revenues represent a major funding source for the City of Chula Vista as well as other local jurisdictions. The distribution of property tax funding has changed over time as the State legislature and voter approved initiatives have altered property tax allocations among local jurisdictions. As a result, the City currently receives property tax in‐lieu revenues and property tax in‐lieu of vehicle license fee revenues. These revenues were meant to replace the state‐wide reallocation of sales tax and vehicle license fee revenues but do not increase the City’s revenue base. ‐$2,000 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 Del MarNational CityPowaySanteeEl CajonEscondidoSolana BeachCarlsbadLa MesaEncinitasSan DiegoLemon GroveVistaSan MarcosChula VistaCoronadoOceansideImperial BeachAutos & Trans.Building & Constr.Business & Industry Food & Drugs Fuel & Svc Stations General Goods Restrnts & Hotels Other 472017-05-23 Agenda Packet Page 276 FY2018 City of Chula Vista Proposed Budget Property Tax Dollar Distribution by Jurisdiction Fiscal Year 2017‐18 1 Represents the exchange of Property Tax for Cities and County Sales and Use Tax as authorized under Assembly Bill 1766, chaptered August 2, 2003. 2 Represents the exchange of Property Tax for Cities and County Vehicle License Fees as authorized under Senate Bill 1096, chaptered August 5, 2004. 3 Revenue for Schools has been reduced by the ERAF deficit as authorized under Senate Bill 1096, chaptered August 5, 2004. 4 Effective February 1, 2012 Redevelopment Agencies were dissolved and related revenue is allocated as provided by Health & Safety Code, Division 24, Part 1.85. Historical Change in Assessed Value City of Chula Vista and Countywide Comparison Source: County of San Diego Assessors Office. Currently, the City of Chula Vista and other cities receive approximately 12.7% of each property tax dollar. The distribution of the property tax dollar among the other local jurisdictions is depicted above. Property tax revenues fell throughout the economic recession with Chula Vista being one of the hardest hit areas. During the economic recession the City’s assessed valuation dropped significantly. This history is depicted in the preceding graph. Since fiscal year 2014, the City’s assessed value has increased and this positive trend is anticipated to continue into fiscal year 2017‐18 and is reflected in the estimated property tax revenues. 3Schools , 45.1% County, 13.2% Cities, 12.7% 4Redevelopment Property Tax Trust Fund, 10.9% 2County in Lieu of Vehicle License Fee, 7.9% 2Cities in Lieu of Vehicle License Fee, 5.3% Special Districts, 3.3% 1Cities In Lieu of Sales & Use Tax, 0.8% Library, 0.7%1County in Lieu of Sales& Use Tax , 0.1% ‐15% ‐10% ‐5% 0% 5% 10% 15% 20% 25% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Chula Vista County Overall 482017-05-23 Agenda Packet Page 277 FY2018 City of Chula Vista Proposed Budget Property tax revenues comprise the City’s second largest discretionary revenue source and accounts for 20.2% of the total revenue for the General Fund. This revenue source is estimated at $33.6 million in the fiscal year 2017‐18 proposed budget and represents 7.8% or $2.4 million increase from the fiscal year 2016‐ 17 Council Adopted Budget. While assessed valuation is estimated to grow at 4.5%, in fiscal year 2017‐18, included in Property tax revenues are pass‐through and residual payments from the Redevelopment Property Tax Trust Fund (RPTTF), pursuant to Health and Safety Code Sections 34183 and 34188. These pass‐through and residual payments are estimated to remain flat when compared to fiscal year 2016‐17. Also included in the anticipated growth in fiscal year 2017‐18 is $0.7 million in projected RPTTF Supplemental Educational Revenue Augmentation Fund (SERAF) loan to the General Fund. Property Tax revenues are based on a 1.0% levy on the assessed value of all real property. Under the terms of Proposition 13, which was approved in California in 1978, annual increases in the assessed value are capped at a maximum of 2% per year unless there is a change in ownership or new construction. Annual increases in assessed value are limited by either the California Consumer Price Index (CPI) or the 2% cap, whichever is less. The recent recession resulted in decreases in assessed valuations due to lower prices from home re‐sales. Also, some years experienced little or negative inflation (deflation) that precluded the County Assessor from applying the normal increase of up to 2% to the assessment roll as permitted under the terms of Proposition 13. As recently as fiscal year 2012‐13, assessed values decreased by 0.7% based on data from the County of San Diego Assessor’s Office. The reductions in assessed valuations and the less than full application of the 2% growth factor to the assessment roll resulted in several years of negative or no growth in property tax revenues for the City during the recession, as illustrated in the chart below. *FY13 Property Tax includes a one‐time payment related to the elimination of the City's Redevelopment Agency. The most recent change in the October to October CPI was 2.6%, which will allow for the full 2% growth rate to be applied to the assessment roll. The fiscal year 2017‐ 18 proposed budget has been increased to reflect this projected rate, as well as another estimated 2.5% growth in reassessed properties, for a total increase of 4.5% in assessed valuation. Historical Change in Assessed Value vs Changes in the California CPI $‐ $5 $10 $15 $20 $25 $30 $35 $40 FY10 FY11 FY12 FY13* FY14 FY15 FY16 FY17 (CA) FY18 (Est.)Millions‐5 0 5 10 15 20 76‐7777‐7878‐7979‐8080‐8181‐8282‐8383‐8484‐8585‐8686‐8787‐8888‐8989‐9090‐9191‐9292‐9393‐9494‐9595‐9696‐9797‐9898‐9999‐0000‐0101‐0202‐0303‐0404‐0505‐0606‐0707‐0808‐0909‐1010‐1111‐1212‐1313‐1414‐1515‐16Assessed Value California CPI Increase 2% 492017-05-23 Agenda Packet Page 278 FY2018 City of Chula Vista Proposed Budget Franchise Fees Franchise fee revenues are generated from public utility sources such as San Diego Gas & Electric (SDG&E) (2% on gas and 1.25% on electricity), trash collection franchises (20% fee), and cable franchises (5% fee) conducting business within City limits. SDG&E collects the franchise fee from Chula Vista customers which can vary due to usage trends. Trash franchise fees and cable fees are more predictable due to the fixed rates charged and the monthly and quarterly receipt of the revenues respectively. Revenue growth is projected based on population and inflation factors. The following chart illustrates the historic and projected revenue trends for the City’s Franchise Fee revenue. Overall, fiscal year 2017‐18 proposed budget franchise fee revenues are projected to increase by $0.2 million and represent 7.2% of the total fiscal year 2017‐18 anticipated General Fund revenues. Franchise Fee Revenues by Utility $‐ $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 (CA) FY18 (Est.)MillionsEnergy Trash/Cable 502017-05-23 Agenda Packet Page 279 FY2018 City of Chula Vista Proposed Budget Motor Vehicle License Fees With the State Budget Act of 2004, the allocation of VLF revenues to cities and counties was substantially changed. Since 2005‐06 the majority of VLF revenues for each city grew essentially in proportion to the growth in the change in gross assessed valuation. Due to the new formula by the State, 96% of the City’s VLF revenues fluctuated with changes in assessed values within the City. The other 4% of VLF revenues received by the City were based on a per capita formula but has since been shifted per SB89. Provisions in SB89 shifted hundreds of millions of Vehicle License Fee revenues to fund the state law enforcement grants. Statewide, SB89 took $130 million of city general revenue and shifted it to save state law enforcement grant programs. This change applied to the 4% of VLF revenues that were based on a per capita formula. The chart above represents actual VLF revenues since fiscal year 2009‐10, the fiscal year 2016‐17 adopted budget, and the fiscal year 2017‐18 estimates. In total the proposed fiscal year 2017‐18 VLF revenues are projected to increase by $1.2 million or 5.8% when compared to the fiscal year 2016‐17 Council Adopted Budget. However, when contrasted to the fiscal year 2016‐17 third quarter projections, the growth is anticipated at $0.9 million or 4.5%. This revenue is estimated to increase in accordance with projected increases in assessed values at 4.5%. VLF revenues are estimated to total $20.8 million in fiscal year 2017‐18. Utility Users Tax The City adopted its Utility Users Tax (UUT) in 1970. The City of Chula Vista imposes a UUT on the use of telecom at a rate of 4.75% of gross receipts. For natural gas services UUT is applied at a rate of $0.00919 per therm and $0.00250 per kilowatt on electricity services, which equates to a tax of approximately 1% of utility charges. Fiscal year 2017‐18 energy related UUT is budgeted at $2.2 million. On April 12, 2013 the City approved a settlement agreement that resolved a class action lawsuit challenging the City’s collection of the wireless telecom portion of the UUT from customers. The settlement received final approval of the court and became fully effective as of February 11, 2014. Pursuant to the terms of the Settlement Agreement, the City brought forward an action and approved Ordinance No. 3318, reducing the Telephone Users’ Tax rate from 5% to 4.75%. The decline in landline telephone users has continued to take a toll on UUT revenues. Telephone users’ tax funds are budgeted at $3.6 million in the fiscal year 2017‐18 proposed budget, which includes wireless, landline, and prepaid card revenues. Prepaid card revenue collection began in January of 2016 and is estimated to be 11% of estimated Telephone users’ tax collections. Transient Occupancy Tax (TOT) The City of Chula Vista imposes a Transient Occupancy Tax (TOT) upon all hotel stays within the City boundaries. The TOT tax rate in the City is 10%. Major economic drivers for TOT revenue include room rates, average occupancy rates, and seasonal and non‐ seasonal tourism. The potential for significant revenue growth is feasible provided additional hotels are built capturing the market created by the growth in the eastern section of the City. Several potential new hotel developments are being proposed in the City, primarily in the Millenia project and the Bayfront. As illustrated in the following graph, during the economic recession, TOT revenue dropped due to the lack of discretionary spending by consumers. However, the trend for city TOT revenues has been improving since 2010 as actual TOT revenue has increased on a yearly basis. $‐ $5 $10 $15 $20 $25 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 (CA) FY18 (Est.)Millions512017-05-23 Agenda Packet Page 280 FY2018 City of Chula Vista Proposed Budget TOT Revenues Percent Change Year by Year The most recent estimate for fiscal year 2016‐17 TOT revenues are projected at $3.6 million. The projection for fiscal year 2016‐17 is lower than actuals received in fiscal year 2015‐16 actuals. It is important to note that fiscal year 2015‐16 actual revenues included $0.3 million in payments for prior year collections. When removing these prior year payments from the comparison, TOT revenues are estimated to increase in fiscal year 2016‐17 by approximately 3.0%. Estimated TOT revenues for fiscal year 2017‐18 are $4.3 million. This is a $0.66 million, or 18.1%, increase from the prior year adopted budget. The proposed budget includes an anticipated base increase to TOT revenues of 1% ($40,000 increase). The remaining $0.6 million increase is based on projected TOT revenues from the additional hotel in Eastern Chula Vista projected to open in fiscal year 2017‐18. Other Revenue Revenue projections are continually reviewed and updated by City staff. As described above, major general revenues, such as property taxes, sales taxes, franchise fees, utility users tax, transient occupancy tax and motor vehicle license fees, are projected by the Finance Department based on prior history, growth and inflation projections, and economic climate. Additional assistance in the projection of revenues is provided by subject‐matter experts such as the City’s sales and property tax consultants, the County Assessor and by reviewing regional and local economic forecasts provided by the UCLA Anderson Forecast and the University of San Diego’s Index of Leading Economic Indicators for San Diego County, respectively. ‐20.0% ‐15.0% ‐10.0% ‐5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 (CA.) FY18 (Est.) 522017-05-23 Agenda Packet Page 281 FY2018 City of Chula Vista Proposed Budget General Fund Net Cost The fiscal year 2017‐18 General Fund budget of $166.6 million is based on funding from estimated program revenues totaling $32.4 million and discretionary revenues totaling $134.1 million. Program revenues are broadly defined as those revenues generated by a given activity (e.g. grant revenues, charges for services, licenses, permits). General revenues, or “discretionary revenues,” are broadly defined as those revenues that are generated not by any given activity, but by general or specific taxing authority such as property taxes and sales tax. Departments that generate small amounts of revenue relative to their size generally have higher net costs. Departments that generate large amounts of revenue relative to their size generally have lower net costs. The majority of discretionary revenue is allocated to public safety services, with Police at 43% followed by Fire at 23%. The next highest portion was allocated to Public Works at 10%. The following chart depicts the net cost of each department, excluding Non‐Departmental, based on the Fiscal Year 2017‐18 Proposed Budget. General Fund Net Cost by Department Fiscal Year 2017‐2018 Boards/ Commissions, Less than 1% Development Services, 0.8% Economic Development, 1% Engineering & Capital Projects, 2% City Clerk, 1% City Council, 1% Animal Care Facility, 1% Recreation, 2% Human Resources, 2% Administration, 2% City Attorney, 3% Finance, 2% ITS, 3% Library, 3% Public Works, 10%Fire, 23% Police, 43% Other, 25% 532017-05-23 Agenda Packet Page 282 542017-05-23 Agenda Packet Page 283 FY2018 City of Chula Vista Proposed Budget General Fund Department Summary The General Fund budget funds the day‐to‐day operations of most City services. For fiscal year 2017‐ 2018 the proposed General Fund operating budget totals $166.6 million. This funds the following departments: Mayor and City Council Boards and Commissions City Clerk City Attorney Administration Information and Technology Services Human Resources Finance Non‐Departmental Animal Care Facility Economic Development Development Services Engineering and Capital Projects Police Fire Public Works Recreation Library To follow is a series of summary reports that reflect the anticipated revenues, expenditures, and staffing information for each of the General Fund departments. 552017-05-23 Agenda Packet Page 284 562017-05-23 Agenda Packet Page 285 CITY COUNCIL 14.00 14.00 14.00 14.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 587,826 649,649 862,097 895,064 Hourly Wages 185,059 208,971 6,142 0 Overtime 0 1,347 0 0 Health Benefits 142,222 143,205 220,163 217,308 Retirement Benefits 200,477 225,614 284,388 290,970 Other Personnel Expense 55,014 73,807 80,204 98,452 1,170,598 1,302,593 1,452,994 1,501,794Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 73,800 50,619 108,479 105,847 Capital 2,995 2,302 3,190 3,190 Utilities 969 817 1,245 1,307 77,764 53,738 112,914 110,344Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $1,248,362 $1,356,331 $1,565,908 $1,612,138 REVENUES Other Revenue 0 5,200 0 0 TOTAL REVENUES $0 $5,200 $0 $0 N/A 0%N/A N/AREVENUE RECOVERY % 572017-05-23 Agenda Packet Page 286 BOARDS & COMMISSIONS 0.00 0.00 0.00 0.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Overtime 1,813 98 102 0 Retirement Benefits 26 1 1 0 1,839 99 103 0Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 70,154 50,639 10,076 9,187 70,154 50,639 10,076 9,187Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $71,993 $50,738 $10,179 $9,187 N/A N/A N/A N/AREVENUE RECOVERY % 582017-05-23 Agenda Packet Page 287 CITY CLERK/ELECTIONS 5.00 6.00 6.00 6.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 429,403 489,038 514,605 523,623 Hourly Wages 14,234 0 19,380 19,380 Health Benefits 76,435 75,572 95,222 92,291 Retirement Benefits 137,405 151,438 177,259 179,089 Other Personnel Expense 17,674 24,952 31,333 (92,731) 675,151 741,000 837,799 721,652Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 300,889 81,070 212,116 219,350 Capital 2,254 0 0 0 Utilities 560 653 655 688 303,703 81,723 212,771 220,038Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $978,854 $822,723 $1,050,570 $941,690 REVENUES Revenue from Other Agencies 0 2,465 0 0 Charges for Services 8,137 2,799 5,500 5,500 Other Revenue 88,359 3,622 0 0 TOTAL REVENUES $96,496 $8,886 $5,500 $5,500 10%1%1%1%REVENUE RECOVERY % 592017-05-23 Agenda Packet Page 288 CITY ATTORNEY 13.00 14.00 14.00 14.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 1,514,462 1,607,719 1,750,405 1,794,346 Hourly Wages 0 0 1,852 1,852 Overtime 0 100 0 0 Health Benefits 180,113 185,152 228,878 219,977 Retirement Benefits 459,502 480,369 577,303 583,831 Other Personnel Expense 62,398 60,812 14,999 70,249 2,216,475 2,334,152 2,573,437 2,670,255Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 292,284 562,187 400,557 303,300 Capital 2,850 2,639 4,948 4,948 Utilities 1,579 1,656 1,768 1,856 296,713 566,482 407,273 310,104Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $2,513,188 $2,900,634 $2,980,710 $2,980,359 REVENUES Charges for Services 65,681 59,683 73,694 73,694 Other Revenue 83,274 73,512 95,126 95,126 TOTAL REVENUES $148,955 $133,195 $168,820 $168,820 6%5%6%6%REVENUE RECOVERY % 602017-05-23 Agenda Packet Page 289 ADMINISTRATION 14.00 17.00 10.00 10.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 1,731,321 1,871,868 1,216,773 1,267,393 Hourly Wages 16,305 27,599 0 0 Overtime 216 2,148 0 0 Health Benefits 205,706 208,751 150,852 144,549 Retirement Benefits 541,507 605,526 437,970 448,185 Other Personnel Expense 102,145 131,506 107,420 93,810 2,597,200 2,847,398 1,913,015 1,953,937Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 233,552 372,558 109,688 88,812 Capital 2,142 85 3,416 3,416 Utilities 1,228 1,668 792 832 236,922 374,311 113,896 93,060Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $2,834,122 $3,221,709 $2,026,911 $2,046,997 REVENUES Charges for Services 6,492 10,379 5,000 5,000 Other Revenue 45,661 192,957 15,000 33,000 Transfers In 77,210 0 0 0 TOTAL REVENUES $129,363 $203,336 $20,000 $38,000 5%6%1%2%REVENUE RECOVERY % 612017-05-23 Agenda Packet Page 290 INFORMATION TECHNOLOGY SERVICES 17.00 17.00 17.00 17.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 1,501,098 1,547,743 1,658,147 1,507,468 Hourly Wages 9,973 28,998 0 0 Health Benefits 228,367 209,655 264,905 226,021 Retirement Benefits 457,724 491,752 533,693 490,855 Other Personnel Expense 81,323 93,585 42,885 97,988 2,278,485 2,371,733 2,499,630 2,322,332Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 735,614 1,203,454 1,323,821 1,358,580 Capital 15,581 52,540 87,890 87,890 Utilities 34,577 34,329 40,902 11,907 785,772 1,290,323 1,452,613 1,458,377Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $3,064,257 $3,662,056 $3,952,243 $3,780,709 REVENUES Charges for Services 9,104 10,622 10,000 10,000 Other Revenue 8,286 176 20,000 20,000 Transfers In 7,096 0 8,900 8,900 TOTAL REVENUES $24,486 $10,798 $38,900 $38,900 1%0%1%1%REVENUE RECOVERY % 622017-05-23 Agenda Packet Page 291 HUMAN RESOURCES 15.00 16.00 16.00 16.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 1,263,777 1,383,486 1,478,780 1,508,849 Hourly Wages 29,472 33,831 28,560 28,560 Overtime 0 0 208 212 Health Benefits 210,923 192,952 249,291 241,316 Retirement Benefits 370,113 405,136 479,473 492,917 Other Personnel Expense 59,215 68,208 27,791 81,760 1,933,500 2,083,613 2,264,103 2,353,614Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 297,800 338,752 417,570 413,686 Other Expenses 2,298 66 0 0 Capital 9,263 9,207 8,920 9,272 Utilities 1,243 2,020 1,388 1,457 310,604 350,045 427,878 424,415Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $2,244,104 $2,433,658 $2,691,981 $2,778,029 REVENUES Charges for Services 64,431 31,999 67,000 261,389 Other Revenue 159,847 126,679 70,000 70,000 Transfers In 32,771 32,771 35,000 35,000 TOTAL REVENUES $257,049 $191,449 $172,000 $366,389 11%8%6%13%REVENUE RECOVERY % 632017-05-23 Agenda Packet Page 292 FINANCE 28.00 27.00 28.00 28.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 1,995,425 2,029,067 2,220,862 2,273,222 Hourly Wages 38,395 46,576 64,380 64,380 Overtime 0 519 0 0 Health Benefits 348,967 304,983 407,564 396,860 Retirement Benefits 599,228 617,787 711,177 744,401 Other Personnel Expense 117,513 140,165 66,657 94,980 3,099,528 3,139,097 3,470,640 3,573,843Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 170,358 241,094 172,001 201,736 Capital 10,713 8,703 15,499 15,499 Utilities 1,714 2,086 2,107 2,212 182,785 251,883 189,607 219,447Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $3,282,313 $3,390,980 $3,660,247 $3,793,290 REVENUES Other Local Taxes 47,033 46,569 55,000 55,000 Licenses and Permits 0 0 0 14,000 Fines, Forfeitures, Penalties 30,788 38,319 30,000 30,000 Use of Money & Property 106,275 5,440 0 0 Charges for Services 32,616 40,470 36,500 36,500 Other Revenue 412,061 399,991 551,484 683,634 Transfers In 312,645 348,618 348,500 348,500 TOTAL REVENUES $941,418 $879,407 $1,021,484 $1,167,634 29%26%28%31%REVENUE RECOVERY % 642017-05-23 Agenda Packet Page 293 NON-DEPARTMENTAL 0.00 0.00 0.00 0.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses 09,493 0 0 Salaries 307,542 0 0 0 Health Benefits 15,164 4,396 0 0 Retirement Benefits 109,960 93,208 0 100,000 Professional Enrichment 108,062 153,167 209,800 209,800 Other Personnel Expense 2,635 0 0 0 543,363 260,264 209,800 309,800Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 2,539,843 2,574,458 1,678,828 1,839,061 Other Expenses 472,403 167,791 167,500 167,500 Capital 842,008 2,500 1,285,053 0 Utilities 20,264 35,354 9,167 8,255 Transfers Out 5,912,769 6,319,951 5,545,081 22,490,479 CIP Project Expenditures 502,881 1,607,197 39,951 0 Non-CIP Project Expenditures 0 260,278 0 0 10,290,168 10,967,529 8,725,580 24,505,295Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $10,833,531 $11,227,793 $8,935,380 $24,815,095 REVENUES Property Taxes 28,616,729 30,220,180 31,174,827 33,620,932 Other Local Taxes 53,964,362 58,307,230 57,406,550 74,775,900 Licenses and Permits 0 980 0 0 Use of Money & Property 1,600,192 1,741,767 1,708,715 1,284,137 Revenue from Other Agencies 18,253,018 19,727,080 19,920,682 21,072,285 Charges for Services 105 26,374 0 0 Other Revenue 3,036,653 1,862,845 2,373,274 1,088,221 Transfers In 2,519,130 1,904,240 3,044,929 2,302,297 TOTAL REVENUES $107,990,189 $113,790,696 $115,628,977 $134,143,772 N/A N/A N/A N/AREVENUE RECOVERY % 652017-05-23 Agenda Packet Page 294 ANIMAL CARE FACILITY 21.00 21.00 21.75 21.75AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 1,072,998 1,154,745 1,324,294 1,358,302 Hourly Wages 203,720 194,339 210,049 176,369 Overtime 63,530 66,602 54,232 50,317 Health Benefits 259,299 246,527 313,133 306,535 Retirement Benefits 336,263 366,017 441,925 454,160 Other Personnel Expense 94,116 107,578 70,631 126,750 2,029,926 2,135,808 2,414,264 2,472,433Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 581,664 580,783 499,215 477,665 Other Expenses 4,147 4,028 4,500 4,500 Capital 6,489 143,531 6,282 6,282 Utilities 47,540 50,051 53,131 45,347 Transfers Out 82,000 0 0 0 721,840 778,393 563,128 533,794Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $2,751,766 $2,914,201 $2,977,392 $3,006,227 REVENUES Licenses and Permits 134,042 123,357 132,600 175,300 Fines, Forfeitures, Penalties 37,574 25,370 20,000 20,000 Use of Money & Property 80 97 0 0 Charges for Services 254,550 256,493 252,600 279,800 Other Revenue 1,214,786 1,052,145 1,146,511 971,070 TOTAL REVENUES $1,641,032 $1,457,462 $1,551,711 $1,446,170 60%50%52%48%REVENUE RECOVERY % 662017-05-23 Agenda Packet Page 295 ECONOMIC DEVELOPMENT 0.00 0.00 14.00 15.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 0 0 1,148,955 1,293,194 Hourly Wages 0 0 6,151 6,151 Overtime 0 0 416 424 Health Benefits 0 0 211,239 219,583 Retirement Benefits 0 0 368,728 421,705 Other Personnel Expense 0 0 59,121 83,809 001,794,610 2,024,866Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 0 0 152,310 168,422 Capital 0 0 1,520 1,520 Utilities 0 0 2,378 2,497 00156,208 172,439Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $0 $0 $1,950,818 $2,197,305 REVENUES Charges for Services 0 0 45,000 0 Other Revenue 0 0 900,124 1,062,970 Transfers In 0 0 10,334 10,334 TOTAL REVENUES $0 $0 $955,458 $1,073,304 N/A N/A 49%49%REVENUE RECOVERY % 672017-05-23 Agenda Packet Page 296 DEVELOPMENT SERVICES 20.25 20.25 20.00 20.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 1,499,400 1,377,443 1,583,950 1,640,795 Hourly Wages 27,087 28,198 28,517 28,517 Overtime 1,366 79 1,561 1,592 Health Benefits 268,252 215,204 293,956 286,718 Retirement Benefits 455,338 442,006 512,195 536,774 Other Personnel Expense 74,016 88,653 45,058 25,028 2,325,459 2,151,583 2,465,237 2,519,424Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 125,714 110,936 191,959 174,363 Other Expenses 10,950 10,950 12,000 12,000 Capital 0 40 500 500 Utilities 2,182 2,629 2,263 2,375 138,846 124,555 206,722 189,238Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $2,464,305 $2,276,138 $2,671,959 $2,708,662 REVENUES Licenses and Permits 399,802 390,691 395,000 395,000 Fines, Forfeitures, Penalties 628,134 427,521 319,000 319,000 Charges for Services 255,123 111,067 195,170 195,170 Other Revenue 443,885 301,608 168,977 168,977 Transfers In 418,486 336,568 968,472 968,472 TOTAL REVENUES $2,145,430 $1,567,455 $2,046,619 $2,046,619 87%69%77%76%REVENUE RECOVERY % 682017-05-23 Agenda Packet Page 297 ENGINEERING AND CAPITAL PROJECTS 0.00 0.00 0.00 46.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 0 0 0 4,405,613 Hourly Wages 0 0 0 38,307 Overtime 0 0 0 120,394 Health Benefits 0 0 0 673,373 Retirement Benefits 0 0 0 1,435,313 Other Personnel Expense 0 0 0 179,212 000 6,852,212Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 0 0 0 459,750 Other Expenses 0 0 0 108,500 Capital 0 0 0 10,000 Utilities 0 0 0 867,081 Transfers Out 0 0 0 389,700 000 1,835,031Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $0 $0 $0 $8,687,243 REVENUES Licenses and Permits 0 0 0 105,966 Charges for Services 0 0 0 800,885 Other Revenue 0 0 0 4,575,984 Transfers In 0 0 0 1,084,728 TOTAL REVENUES $0 $0 $0 $6,567,563 N/A N/A N/A 76%REVENUE RECOVERY % 692017-05-23 Agenda Packet Page 298 POLICE 321.50 322.50 326.50 332.50AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 23,371,320 24,592,962 26,720,177 28,404,434 Hourly Wages 439,537 448,068 323,799 218,110 Overtime 3,568,286 3,884,938 2,531,836 2,885,869 Health Benefits 4,131,526 3,985,148 4,775,213 4,807,105 Retirement Benefits 8,189,791 9,020,898 10,285,578 10,926,451 Other Personnel Expense 2,557,676 2,893,833 1,890,237 2,746,604 42,258,136 44,825,847 46,526,840 49,988,573Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 3,615,654 3,605,123 2,818,864 2,767,798 Other Expenses 101,971 231,332 123,243 123,243 Capital 10,019 21,599 0 0 Utilities 499,140 488,911 535,042 451,602 Transfers Out 0 4,777 0 0 4,226,784 4,351,742 3,477,149 3,342,643Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $46,484,920 $49,177,589 $50,003,989 $53,331,216 REVENUES Licenses and Permits 183,580 195,857 250,000 396,847 Fines, Forfeitures, Penalties 815,055 641,856 533,700 588,423 Use of Money & Property 5,675 14,082 8,000 8,000 Revenue from Other Agencies 1,092,880 1,268,344 1,155,429 1,049,701 Charges for Services 4,253,423 3,984,468 3,774,016 4,197,057 Other Revenue 75,844 82,541 59,910 83,580 Transfers In 556,927 404,445 404,445 404,445 TOTAL REVENUES $6,983,384 $6,591,593 $6,185,500 $6,728,053 15%13%12%13%REVENUE RECOVERY % 702017-05-23 Agenda Packet Page 299 FIRE 136.00 136.00 136.00 136.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 10,888,273 11,417,004 12,124,788 12,513,487 Hourly Wages 106,910 62,654 4,940 4,940 Overtime 4,334,502 4,834,095 3,711,031 3,821,323 Health Benefits 2,014,714 2,017,304 2,356,303 2,346,228 Retirement Benefits 4,130,000 4,536,411 5,162,570 5,077,847 Other Personnel Expense 1,398,643 1,457,877 1,421,045 1,475,075 22,873,042 24,325,345 24,780,677 25,238,900Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 1,988,270 2,049,885 2,257,550 2,271,285 Capital 0 155,311 150,000 0 Utilities 204,781 203,352 228,188 201,327 Transfers Out 47,330 61,620 62,326 62,326 2,240,381 2,470,168 2,698,064 2,534,938Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $25,113,423 $26,795,513 $27,478,741 $27,773,838 REVENUES Licenses and Permits 458,497 432,705 437,519 437,519 Use of Money & Property 15,600 15,600 15,600 15,600 Revenue from Other Agencies 666,907 669,000 664,000 664,000 Charges for Services 549,571 586,479 472,282 584,782 Other Revenue 597,907 1,370,672 30,702 198,085 Transfers In 649,923 828,194 972,453 972,453 TOTAL REVENUES $2,938,405 $3,902,650 $2,592,556 $2,872,439 12%15%9%10%REVENUE RECOVERY % 712017-05-23 Agenda Packet Page 300 PUBLIC WORKS OPERATIONS 163.00 164.50 162.50 116.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 10,817,201 10,876,510 11,645,537 7,530,020 Hourly Wages 358,860 396,395 369,135 330,829 Overtime 217,747 346,802 226,581 110,715 Health Benefits 2,124,331 1,935,753 2,361,189 1,628,106 Retirement Benefits 3,338,390 3,539,663 3,795,189 2,480,063 Other Personnel Expense 790,921 889,216 500,361 364,913 17,647,450 17,984,339 18,897,992 12,444,646Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 3,707,479 3,666,610 2,948,488 2,568,865 Other Expenses 169,810 157,656 128,000 19,500 Capital 46,618 103,741 15,171 5,171 Utilities 3,518,628 3,389,240 3,885,161 2,838,832 Transfers Out 389,681 389,003 391,900 0 Non-CIP Project Expenditures 62,893 98,860 18,700 18,700 7,895,109 7,805,110 7,387,420 5,451,068Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $25,542,559 $25,789,449 $26,285,412 $17,895,714 REVENUES Licenses and Permits 105,735 157,653 105,966 0 Fines, Forfeitures, Penalties 200 100 0 0 Use of Money & Property 269,695 282,242 247,700 247,700 Revenue from Other Agencies 21,208 11,597 0 0 Charges for Services 961,469 960,064 548,440 17,655 Other Revenue 7,031,543 6,735,248 6,446,453 1,695,601 Transfers In 5,976,614 5,983,121 6,144,138 5,071,374 TOTAL REVENUES $14,366,464 $14,130,025 $13,492,697 $7,032,330 56%55%51%39%REVENUE RECOVERY % 722017-05-23 Agenda Packet Page 301 RECREATION 17.00 17.00 17.00 17.00AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 1,152,885 1,223,493 1,316,520 1,372,953 Hourly Wages 940,793 1,000,731 1,054,480 1,084,843 Overtime 2,698 3,308 5,201 5,302 Health Benefits 220,429 213,643 250,535 244,406 Retirement Benefits 415,956 457,403 509,273 498,571 Other Personnel Expense 68,974 82,996 37,045 92,472 2,801,735 2,981,574 3,173,054 3,298,547Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 505,161 587,840 605,457 583,845 Other Expenses 78,299 131,027 123,657 206,796 Capital 11,432 2,438 12,692 2,523 Utilities 349,722 357,358 396,345 328,024 944,614 1,078,663 1,138,151 1,121,188Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $3,746,349 $4,060,237 $4,311,205 $4,419,735 REVENUES Use of Money & Property 796,190 777,749 694,036 808,128 Revenue from Other Agencies 6,408 7,558 7,233 7,233 Charges for Services 1,308,527 1,353,023 1,399,067 1,472,810 Other Revenue 103,010 106,973 99,359 102,182 TOTAL REVENUES $2,214,135 $2,245,303 $2,199,695 $2,390,353 59%55%51%54%REVENUE RECOVERY % 732017-05-23 Agenda Packet Page 302 LIBRARY 21.50 22.50 22.50 22.50AUTHORIZED FULL TIME POSITIONS SUMMARY OF DEPARTMENT RESOURCES ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Expenses Salaries 1,432,958 1,542,135 1,625,205 1,683,131 Hourly Wages 605,812 649,051 679,021 679,021 Overtime 0 1,982 0 0 Health Benefits 270,920 276,365 330,704 322,742 Retirement Benefits 503,687 569,238 646,462 587,469 Other Personnel Expense 107,204 124,261 67,861 36,877 2,920,581 3,163,032 3,349,253 3,309,240Personnel Expenses Subtotal Non-Personnel Expenses Supplies and Services 289,384 245,941 206,983 202,879 Other Expenses 360 360 400 400 Utilities 316,713 280,142 351,050 297,306 606,457 526,443 558,433 500,585Non-Personnel Expenses Subtotal TOTAL EXPENDITURES $3,527,038 $3,689,475 $3,907,686 $3,809,825 REVENUES Fines, Forfeitures, Penalties 126,500 116,291 118,000 118,000 Use of Money & Property 38,332 42,889 57,550 57,550 Revenue from Other Agencies 3,000 2,274 2,000 2,000 Charges for Services 126,438 353,890 195,013 315,013 Other Revenue 88,965 52,626 8,850 8,850 TOTAL REVENUES $383,235 $567,970 $381,413 $501,413 11%15%10%13%REVENUE RECOVERY % 742017-05-23 Agenda Packet Page 303 FY2018 City of Chula Vista Proposed Budget GENERAL FUND LONG‐TERM FINANCIAL PLAN 752017-05-23 Agenda Packet Page 304 762017-05-23 Agenda Packet Page 305 FY2018 City of Chula Vista Proposed Budget General Fund Long‐Term Financial Plan Each year the City of Chula Vista has prepared a General Fund Five‐Year Forecast which serves as a tool to identify financial trends, shortfalls, and issues so that the City can proactively address them. For fiscal year 2017‐2018, the City’s first Long Term Financial Plan is being presented in order to expand the duration of the forecast to ten years from the current five years, as well as to provide a more in depth analysis of the City’s fiscal condition to aide in proactive financial decision making. The goal of the Long Term Financial Plan is to assess the City’s ability over the next ten years to continue to provide current service levels based on projected growth, preserve the City’s long term fiscal health by aligning operating revenues and costs, and to slowly rebuild the operating reserves. As a financial planning document, revenue and expenditure assumptions are included to forecast the impacts of development, legislative changes, pension costs, health care, economic cycles, and many other factors over the next ten years. It is important to stress that this plan is not a budget. It does not make expenditure decisions but rather highlights the need to prioritize the allocation of City resources. The purpose of the plan is to provide an overview of the City’s fiscal health based on various assumptions over the next ten years and provide the City Council, management, and the citizens of Chula Vista with a “heads up” on the financial outlook beyond the annual budget cycle. The Long Term Financial Plan is intended to serve as a planning tool to bring a long‐term perspective to the budget process. The following assumptions were used in the preparation of the ten year projections attached. ECONOMIC & POPULATION GROWTH Inflation is a measure of the increase for the cost of goods and services. Inflation impacts many revenues, such as rents and leases, and most expenditure categories throughout the plan. Normally inflation averages around 2% per year. With the recent approval of Senate Bill 3 by California Governor Jerry Brown the state minimum wage will be increasing to $15 per hour by the year 2022. As a result expenditure inflation may be significantly higher than normal over this period of time. While it is impossible to calculate the exact impacts year by year, it is reasonable to assume that employers will be passing along the increased labor costs into their costs of goods and services. The state minimum wage proposal calls for an increase in minimum wage to $10.50 in 2017, $11 in 2018 and one dollar each year through 2022. The ten year forecast includes expenditure inflation on the supplies and services category ranging from 5%‐9% per year until 2022. While the City does not currently pay minimum wage for any of its authorized positions, the increases in minimum wage will exceed current wages for some hourly, part‐time, and seasonal staff. Those positions are adjusted by a higher than normal inflation factor through 2022 in the ten year forecast. The regional, state, and national economies continue to recover at a modest pace from the recession of 2007‐2009. The two major factors that have supported the recovery are the growth in the housing market related to new development and housing price appreciation, as well as job creation reflected in the strong unemployment figures. While most current U. S. economic forecasts show continued growth over the next 12‐18 months, global recessionary pressures continue to build. China’s explosive economic expansion is beginning to slow to a more sustainable level. Oil producing nations have suffered greatly as a result of the oil price collapse over the last 36 months. The majority of the European economies continue to struggle to achieve any measurable growth which has required the European Central Bank to maintain extremely low interest rates to avoid a pronounced recession. This lack of inflation in Europe has put pressure on U.S. interest rates as the “risk‐off” trade of Federal Securities continues to be the investment vehicle of choice for many conservative investors. The U.S. national debt continues to build while entitlement liabilities within the Social Security, Medicare, and the Health Care system provides cause for concern as it relates to future economic growth assumptions. MAJOR REVENUES Sales tax revenue will increase moderately in FY 2018 with projected slow growth anticipated at 2%. In Fiscal Years 2019‐22 the projected growth is expected to be at 2.5%. A reasonable assumption of sales tax growth 772017-05-23 Agenda Packet Page 306 FY2018 City of Chula Vista Proposed Budget in forecast years 5‐10 is based upon normal inflation increases along with population growth. Property tax revenue is the City’s most stable revenue source. The severe housing recession late last decade decimated property values and therefore severely reduced property tax revenues from 2008‐2012. A steady recovery has ensued since that time. Another housing recession is not predicted during the forecast period. Stable property tax revenue growth is assumed throughout the forecast period. Franchise Fees, Utility User Taxes, and Motor Vehicle License Fees are all projected to grow at a steady rate throughout the forecast period. Transient occupancy tax will see significant increases as a result of three new major hotels planned for development in the eastern part of the City over the next five years. Most of the City’s current hotels/motels are of the discount or budget variety. The three new hotels will be in the mid‐range service level and will attract more business travelers and tourists to the City. The City recently took over the ownership and operation of the Olympic Training Center in the City. It is anticipated that future events at the training center will further support robust growth in transient occupancy tax. The City currently anticipates the first hotel opening sometime in calendar year 2017 with the second and third hotels opening in 2019. EXPENDITURES Personnel Services for fiscal year 2017‐18 reflect assumed wage inflation of 2% per year. At the time of the writing of this document the City was entering negotiations with four of the five bargaining groups. For purposes of the ten year forecast, wage inflation is assumed at 2% per year. It is important to note that this figure is simply an assumption and does not represent a commitment or obligation, but rather provides a baseline for wage related inflation in the future. Beginning in 2017‐18, salary savings are calculated at 1% of projected Salary/PERS/Medicare expenditures. This is based upon normal position vacancy rates and savings as a result of voluntary furlough elections by employees. The Workers Compensation Fund is close to depleting its fund balance. This fund was established to account for revenues and expenditures related to workers compensation claims and litigation. The Workers Compensation charges allocated to the General Fund will need to increase in order to fund anticipated Workers Compensation expenditures and begin to build reserves. The Public Liabilities Trust Fund is also close to depleting its fund balance. This fund was established to account for revenues and expenditures related to litigation activities citywide. Additional General Fund allocations will be required in order to maintain sufficient reserves within this fund. PENSION COSTS The City contracts with CalPERS for retirement benefits for all full time benefitted employees. The City currently has three tiers of employees based upon their start date within the CalPERS system and with the City of Chula Vista. For each of the benefit rates referenced below, CalPERS uses the percentage of service credit earned in one year (3%, 2%, etc.) and the full retirement age (60, 50, etc.) to describe their tiers. Tier 1 employees include employees who became members of CalPERS and started with the City of Chula Vista prior to 4/22/2011. Miscellaneous tier 1 employees receive benefits at the rate of 3% at 60. Public Safety tier 1 employees receive benefits at the rate of 3% at 50. Tier 2 employees include employees that became members of CalPERS or a reciprocal agency prior to 1/1/2013 but started with the City after 4/22/2011. Miscellaneous tier 2 employees receive benefits at the rate of 2% @ 60. Public Safety tier 2 employees receive benefits at the rate of 3.0% @ 55. PEPRA, or Tier 3 employees include all employees that are new members to CalPERS on or after 1/1/2013. Miscellaneous tier 3 employees receive benefits at the rate of 2% @ 62. Public safety tier 3 employees receive benefits at the rate of 2.7% at 57. All City employees are separated into two retirement employment categories, miscellaneous and public safety, in the annual CalPERS actuarial valuation reports. These reports provide the City with two very important figures. The first is the City’s unfunded liability which is the amount the City would have to pay to CalPERS today to completely pay off all pension 782017-05-23 Agenda Packet Page 307 FY2018 City of Chula Vista Proposed Budget liability. The unfunded liability is the amount of money it would take to bring the City’s pension plan to 100% funded status. As of June 30, 2015, the most recent CalPERS valuation report available, the City’s unfunded liability for the miscellaneous category was $153.8 million and for the public safety category it was $107.4 million. The second important figure is the City’s required employer contribution. This is amount of money the City will need to contribute for the fiscal year towards pension costs. For fiscal year 2017‐18 the required employer contribution for the miscellaneous category is $15.3 million, an increase of approximately $1.1 million from fiscal year 2016‐17. For the public safety category the fiscal year 2017‐18 required employer contribution is $13.4 million, an increase of approximately $1.2 million from fiscal year 2016‐17. These two numbers are used to calculate the City’s minimum employer contribution rate. This is the rate of base pay the City must contribute to cover an employee’s pension costs. CalPERS valuation reports also provide the City with a five‐year projection of future employer contribution rates that the City can utilize in making long term projections. Since the projection will always be almost a year and half old by the time it is complete, the City hired an actuarial consultant to prepare a more up to date analysis of our projected employer contribution rates. The results of this analysis are included in the ten year projections attached. For miscellaneous employees, the projected future employer contribution rate will rise from 31.5% in fiscal year 2017‐18 to 44.4% in 2026‐27. For public safety employees, the projected employer contribution rate will rise from 35.6% in fiscal year 2017‐18 to 57% in 2026‐27. This means that in the year 2027 for every $1 the City pays to Miscellaneous employees the City will have to contribute an additional $0.44 to CalPERS to cover pension obligations. This number increases to $0.57 for public safety employees. In December, 2016 the CalPERS board approved a reduction in their stated discount rate from 7.5% to 7.0%. This change will result in a 30‐40% increase in the City’s unfunded pension liability as well as increasing normal pension costs. The 10 year forecast includes the anticipated impacts of this change. Part time employees receive retirement benefits through PARS. PARS is an alternative to Social Security for Part‐Time, Seasonal, and Temporary employees. The City and employees both currently contribute 3.75% of salary towards the PARS contribution amount of 7.5%. HEALTH CARE The City currently offers employees four medical plan options: UHC (value and full); UHC PPO; and Kaiser HMO. The City does allow retirees to stay enrolled in the City’s health plans at the same rate as our active employees. The City recently went out to bid to ensure the best overall value for the plans offered to our employees. As a result of the bid process, Aetna was replaced by UHC for the value, HMO, and PPO plans. At the time of the production of this document 2018 rates were unknown. The medical plan cost history over the last five years shows that Kaiser has increased by an average of 3.9% per year. Cost history for UHC is not available since they are a new provider to the City. The City’s health insurance broker anticipates that average annual health insurance costs will increase by 10% per year over the ten year forecast period, in line with the industry average. ASSET MANAGEMENT The Asset Management Program was developed to identify, assess, and plan for the repair and replacement of all City assets. The first step of the program consists of documenting all assets owned and managed by the City. This documentation includes inventorying all assets, performing a condition assessment on each of them, valuing the assets, and creating a hierarchy. The second step of the program is to prioritize the need by critically ranking all assets by risk level and level of importance. The third step of the program is to perform a life cycle cost assessment in order to develop a plan for financing the entire program. The program consists of nine separate systems which are outlined below. Using the steps described above, the assets in each system have been sorted by red (high risk zone), yellow (medium risk zone), and green (low risk zone). This allows for the City to make decisions on each asset (repair, replace, renovate, liquidate, shut down, relocate, etc.) and to budget available resources towards the repair and replacement of these assets. With seven of nine systems completed, the red category has approximately $112 million in estimated funding 792017-05-23 Agenda Packet Page 308 FY2018 City of Chula Vista Proposed Budget required to repair and replace these high risk assets. The yellow category currently has an estimated $437.6 million in funding required for repair and replacement costs. Building Management System (BMS) Drainage Management System (DMS) Fleet Management System (FMS) o Police o Fire o General Government General Government Management System (GGMS) Open Space Management System (OSMS) Parks Management System (PMS) Roadways Management System (RMS) Urban Forestry Management System (UFMS) Wastewater Management System (WMS) During the development of the Asset Management program, it became clear that additional funding would be needed to fund the additional infrastructure projects and equipment. After extensive research into viable funding options, City staff recommended moving forward with Measure P, a half‐cent sales tax measure with a ten year sunset period. City Council approved the ballot measure in July 2016 and the measure ultimately passed with approximately 68% of the vote in favor. Staff projects Measure P revenue at approximately $170 million dollars over the ten year period. DEVELOPMENT IMPACTS As new major developments are proposed in the City, each developer is required to submit a fiscal impact analysis to ensure that the City’s revenues generated from the project will meet or exceed the anticipated expenditures. Many of the developments within the City were initiated prior to the recession and housing market crash late last decade. The recession and reduction in property values has caused the revenues to be below what was originally anticipated. The timing of the revenues related to new development can vary greatly depending on how fast the market can absorb the new inventory and the economic condition throughout the development process. Staff is currently working on developing an updated fiscal impact model that will more accurately project impacts of new developments. We anticipate this new model to be completed in summer 2017. ITEMS NOT INCLUDED IN THE PLAN Several projects are in conceptual planning or negotiation stages and therefore cannot be accurately forecast during the ten year forecast period. The Bayfront project has been discussed for many years. This project would bring a variety of residential and commercial developments to an area of the City that is currently underutilized. Discussions are ongoing with the various resource agencies, governments, and developers. This Long Term Financial Plan does not include potential revenue growth assumptions from Bayfront related indirect development. As mentioned previously, the City recently signed an agreement with the United States Olympic Committee to take over the ownership of the Olympic Training Center. Although it is likely that this change in use of this venue will attract new tourism to the City, an accurate forecast for actual revenue generated by the Center would be difficult to project at this time. This plan will include an update annually to these projects and any future projects that are being considered. 10 YEAR PROJECTIONS The following table includes major revenue and expenditure categories for the City’s General Fund over a ten year forecast period assuming maintaining current baseline services. It is important to understand that this is only a forecast and not indicative of what the budgets will be in future years. Assumptions have been made about the state of the economy, the City’s future costs, as well as projected expenditures. In general, the farther you project into the future the less accurate the forecast will be. Every effort was made in the creation of the forecast to base assumptions on industry best practices. 802017-05-23 Agenda Packet Page 309 FY2018 City of Chula Vista Proposed Budget Description ProposedForecastForecastForecastForecastForecastForecastForecastForecastForecast FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Revenues: Property Taxes 33.62$ 34.36$ 35.30$ 36.26$ 37.26$ 38.28$ 39.34$ 40.42$ 41.54$ 42.69$ Sales Tax 49.26$ 50.25$ 51.42$ 52.63$ 53.85$ 55.11$ 56.40$ 57.72$ 59.07$ 55.57$ Franchise Fees 11.97$ 11.57$ 11.76$ 11.96$ 12.16$ 12.36$ 12.56$ 12.77$ 12.98$ 13.20$ Utility Users Taxes 5.86$ 5.92$ 5.98$ 6.04$ 6.10$ 6.16$ 6.22$ 6.28$ 6.35$ 6.41$ Transient Occupancy Taxes 4.32$ 4.36$ 5.61$ 5.73$ 5.84$ 5.96$ 6.08$ 6.20$ 6.32$ 6.45$ Motor Vehicle License Fees 20.84$ 21.16$ 21.79$ 22.44$ 23.11$ 23.80$ 24.51$ 25.25$ 26.00$ 26.78$ SUBTOTAL MAJOR DESCRETIONARY REVENUES 125.87$ 127.62$ 131.87$ 135.05$ 138.32$ 141.67$ 145.11$ 148.64$ 152.26$ 151.10$ Development Revenue 1.21$ 1.21$ 1.22$ 1.22$ 1.23$ 1.24$ 1.24$ 1.25$ 1.25$ 1.26$ Licenses and Permits 1.36$ 1.39$ 1.42$ 1.45$ 1.48$ 1.51$ 1.54$ 1.57$ 1.60$ 1.63$ Fines, Forfeitures & Penalties 1.08$ 1.10$ 1.12$ 1.14$ 1.16$ 1.19$ 1.21$ 1.24$ 1.26$ 1.29$ Use of Money and Property 2.42$ 2.45$ 2.47$ 2.49$ 2.52$ 2.55$ 2.57$ 2.60$ 2.62$ 2.65$ Other Local Taxes 2.60$ 2.62$ 2.65$ 2.68$ 2.70$ 2.73$ 2.76$ 2.79$ 2.81$ 2.84$ Police Grants 0.76$ 0.76$ 0.76$ 0.76$ 0.76$ 0.76$ 0.76$ 0.76$ 0.76$ 0.76$ Other Agency Revenue 2.03$ 2.05$ 2.07$ 2.09$ 2.11$ 2.13$ 2.15$ 2.17$ 2.19$ 2.22$ Charges for Services 7.21$ 7.25$ 7.28$ 7.32$ 7.36$ 7.39$ 7.43$ 7.47$ 7.50$ 7.54$ Interfund Reimbursements 9.82$ 9.92$ 10.01$ 10.11$ 9.76$ 9.86$ 9.96$ 10.06$ 10.16$ 10.26$ Other Revenues ‐ Miscellaneous 1.03$ 1.04$ 1.04$ 1.05$ 1.06$ 1.06$ 1.07$ 1.07$ 1.08$ 1.08$ Transfers From Other Funds 11.21$ 10.91$ 10.91$ 10.91$ 10.91$ 10.91$ 10.91$ 10.91$ 10.91$ 10.91$ SUBTOTAL OTHER REVENUES 40.72$ 40.68$ 40.95$ 41.21$ 41.04$ 41.31$ 41.59$ 41.87$ 42.14$ 42.43$ NEW DEVELOPMENT REVENUES Property Taxes ‐$ 0.73$ 1.01$ 1.41$ 1.76$ 2.10$ 2.46$ 2.79$ 3.19$ 3.37$ Sales Tax ‐$ 0.32$ 0.45$ 0.59$ 0.74$ 0.85$ 0.96$ 1.06$ 1.16$ 1.26$ Franchise Fees ‐$ 0.20$ 0.28$ 0.36$ 0.45$ 0.54$ 0.63$ 0.72$ 0.80$ 0.88$ Utility Users Taxes ‐$ 0.08$ 0.11$ 0.14$ 0.18$ 0.21$ 0.25$ 0.28$ 0.32$ 0.76$ Transient Occupancy Taxes ‐$ 1.19$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Motor Vehicle License Fees ‐$ 0.48$ 0.67$ 0.94$ 1.17$ 1.40$ 1.64$ 1.86$ 2.12$ 2.24$ Other Revenues ‐ Miscellaneous ‐$ 0.27$ 0.38$ 0.50$ 0.62$ 0.74$ 0.86$ 0.98$ 1.06$ 1.69$ Other Local Taxes ‐$ 0.15$ 0.19$ 0.26$ 0.26$ 0.28$ 0.31$ 0.33$ 0.35$ 0.30$ SUBTOTAL NEW DEVELOPMENT REVENUES ‐$ 3.41$ 3.09$ 4.20$ 5.18$ 6.12$ 7.09$ 8.02$ 8.99$ 10.50$ TOTAL REVENUES 166.59$ 171.71$ 175.90$ 180.46$ 184.54$ 189.10$ 193.79$ 198.52$ 203.39$ 204.03$ Expenditures: Personnel Services 88.93$ 90.70$ 91.99$ 93.74$ 95.52$ 97.34$ 99.20$ 101.10$ 103.03$ 105.01$ Flex/Insurance 12.37$ 12.82$ 13.76$ 14.78$ 15.88$ 17.07$ 18.36$ 19.75$ 21.27$ 22.91$ PERS 24.43$ 27.79$ 30.53$ 33.49$ 36.41$ 39.07$ 41.28$ 43.89$ 45.17$ 47.17$ Salary Savings (On Going)(0.84)$ (0.86)$ (0.89)$ (0.92)$ (0.95)$ (0.98)$ (1.01)$ (1.05)$ (1.07)$ (1.10)$ Salary Savings (One‐Time)(1.34)$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ SUBTOTAL PERSONNEL SERVICES EXPENDITURES 123.56$ 130.45$ 135.39$ 141.09$ 146.85$ 152.49$ 157.82$ 163.70$ 168.40$ 173.99$ Supplies and Services 14.21$ 15.49$ 16.73$ 18.07$ 19.34$ 19.72$ 20.12$ 20.52$ 20.93$ 21.35$ Utilities 5.06$ 5.32$ 5.58$ 5.86$ 6.15$ 6.46$ 6.79$ 7.12$ 7.48$ 7.85$ Other Expenses 0.64$ 0.66$ 0.67$ 0.68$ 0.70$ 0.71$ 0.72$ 0.74$ 0.75$ 0.77$ Equipment (Capital not CIP)0.15$ 0.15$ 0.15$ 0.16$ 0.16$ 0.16$ 0.16$ 0.16$ 0.16$ 0.16$ Transfers/Debt Service 22.94$ 24.01$ 23.95$ 24.19$ 24.48$ 24.91$ 25.26$ 25.60$ 25.97$ 21.23$ Capital Improvement Projects ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ Non‐CIP Project Expenditures 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ 0.02$ SUBTOTAL OTHER EXPENDITURES 43.03$ 45.65$ 47.10$ 48.98$ 50.84$ 51.98$ 53.06$ 54.17$ 55.31$ 51.38$ NEW DEVELOPMENT EXPENDITURES 4.0 Truck Staffing for Millenia and Bayfront ‐$ 1.86$ 1.97$ 2.08$ 4.38$ 4.60$ 4.82$ 5.05$ 5.27$ 5.51$ Peace Officer Funding ‐$ 0.76$ 1.61$ 2.55$ 3.59$ 4.71$ 5.91$ 7.22$ 8.60$ 10.10$ Millenia Parks Maintenance ‐$ 0.08$ 0.08$ 0.08$ 0.08$ 0.08$ 0.08$ 0.08$ 0.08$ 0.08$ Fire Station Supplies and Services ‐$ 0.16$ 0.16$ 0.16$ 0.32$ 0.32$ 0.32$ 0.32$ 0.32$ 0.32$ SUBTOTAL NEW DEVELOPMENT EXPENDITURES ‐$ 2.86$ 3.82$ 4.87$ 8.36$ 9.71$ 11.12$ 12.67$ 14.26$ 16.01$ TOTAL EXPENDITURES 166.59$ 178.96$ 186.31$ 194.93$ 206.06$ 214.18$ 222.01$ 230.53$ 237.97$ 241.38$ TOTAL GENERAL FUND SURPLUS/(DEFICIT)‐$ (7.24)$ (10.42)$ (14.47)$ (21.52)$ (25.08)$ (28.22)$ (32.01)$ (34.58)$ (37.35)$ SURPLUS/(DEFICIT) AS % OF BUDGET 0%‐4%‐6%‐7%‐10%‐12%‐13%‐14%‐15%‐15% ADMINISTRATIVE ACTIONS FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 Utility Savings through Measure P Projects ‐$ 0.83$ 1.65$ 1.65$ 1.65$ 1.65$ 1.65$ 1.65$ 1.65$ 1.65$ Citywide Transition to Paperless Operations ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ TOTAL ADMINISTRATIVE ACTIONS ‐$ 0.83$ 1.65$ 1.65$ 1.65$ 1.65$ 1.65$ 1.65$ 1.65$ 1.65$ SURPLUS/(DEFICIT) WITH ADMINISTRATIVE ACTIONS ‐$ (6.42)$ (8.77)$ (12.82)$ (19.87)$ (23.43)$ (26.57)$ (30.36)$ (32.93)$ (35.70)$ 812017-05-23 Agenda Packet Page 310 FY2018 City of Chula Vista Proposed Budget DEBT CAPACITY The City anticipates completing a comprehensive Benchmarking and Measuring Debt Capacity in the next year. This will identify the City’s ability to manage its existing debt payments into the future and determine if new debt is feasible. The City currently has four outstanding Certificates of Participation that are funded with General Fund contributions, Public Facilities Development Improvement Funds (PFDIF), and/or the Residential Construction Tax Funds (RCT). The 2002 Certificates of Participation (COPS) were issued in the amount of $60.145 million to fund the City’s Police Facility. The 2004 COPS were issued in the amount of $37.24 million to fund the Civic Center Phase I improvements as well as the Western Chula Vista Infrastructure projects. The 2006 COPS were issued in the amount of $20.325 million to fund the Civic Center Phase II improvements as well as Nature Center Improvements. The 2010 COPS were issued in the amount of $29.355 million to fund the Civic Center Phase III improvements as well as to refund $16.5 million of the Corp Yard 2000 COPS. In 2014, the 2002 COPS were refunded by the 2014 COPS in the amount of $45.92 million. In 2015, the 2004 COPS and part of the 2006 COPS were refunded by the 2015 COPS. Total annual debt service payments are approximately $9.2 million consisting of approximately $3.1 million in General Fund contributions, $5.5 million in PFDIF, and approximately $0.6 million in RCT funds. The City recently completed refundings of the remaining 2006 COPS and the 2010 COPS in July 2016 which will generate savings of approximately 9.3% and lower the annual debt service amounts. In addition, the City refunded all outstanding Tax Allocation Bonds in July 2016 which will generate savings of 12.3% for the taxing entities and increase property tax revenue for the City. POTENTIAL SOLUTIONS TO RESOLVE STRUCTURAL OPERATING DEFICIT The ten year projections indicate a high likelihood of future structural deficits. Cost increases are outpacing revenue growth throughout the forecast period. Below are possible actions that could be undertaken in order to bridge the funding gap. Technology – One option for the City to overcome its structural deficit is to identify and purchase technology that provides a positive return on its public investment. Technology can increase service levels to the constituents without raising costs to the City (ex. Third Party Mobile Applications), it can create new revenues to the City that exceed its costs, or it can reduce costs overall through the replacement of manual processes (ex. provide more services with the same amount of staff). Efficiency – Similar to technology, efficiencies can be achieved by changing “how we do things.” The City encourages its employees to take part in the Lean Academy which teaches employees how to take an existing activity, and through a series of steps, transform it into a more efficient time and money saving process. Combining a lean process with technology, utilized affectively, could dramatically improve the City’s fiscal condition. The City is currently looking into converting many of its fleet to electric vehicles to create efficiencies in our mechanic shop since electric vehicles require less maintenance as well as creating fuel and insurance savings. Use of One‐Time Funds – Many cities adopt use of one‐time funds policies so that as grants, donations, and unexpected revenues are received, the funds are allocated to the highest priority in the City automatically. A typical one‐time funds policy would first allocate additional revenues to a reserve fund until the minimum required reserve is met, then perhaps pension stabilization fund, a vehicle and equipment replacement fund, and finally a comprehensive asset management program. Other potential uses of one‐time funds include projects and services that create ongoing revenue streams (ex. solar projects, business attraction incentives, etc.). Public Private Partnerships – Public private partnerships can take a variety of forms. One great example of this partnership currently taking place in the City of Chula Vista is within the City’s library system. Several non‐profit organizations partner with the City to provide services to the public at local libraries at low or no cost. Expanding these partnerships citywide could create new money saving opportunities for the City as employees of non‐profit organizations could serve as an extension of City staff. Non‐ Profit organizations have strengths in fund raising, 822017-05-23 Agenda Packet Page 311 FY2018 City of Chula Vista Proposed Budget tax status, and volunteers that make many services much cheaper to provide to the public than for a local government. Other creative public‐private partnerships that have been used by other cities include adopt‐a‐park programs where citizens or local organizations volunteer to maintain or rehabilitate an existing park (ex. Living Coast Discovery Center, Olympic Training Center). Internship/Volunteer Programs – Many public and private organizations utilize volunteers and internships to support staff with one time projects, special events, research, and analysis. While these individuals do not perform day‐to‐day duties of our current employees, they are able to add value without significant cost. If managed properly, a robust internship/volunteer program can create significant financial benefits to the City. At the same time, the individuals receive valuable experience and skills that can make them more attractive when seeking full time employment. Contract Services – Cities commonly contract out for a variety of services including but not limited to: legal; engineering; financial; and specialty services typically in cases where the City does not possess the in‐house expertise to perform the function most efficiently. Service levels – Service level can be defined simply as the quantity and quality of the services provided by a City. As economic cycles occur and City revenues rise and fall, the most difficult job for a City is to maintain service levels. The structural deficit detailed in the ten year forecast demonstrates the severity of the projected fiscal condition of the City and the importance of balancing service levels with financial resources. In conjunction with priority based budgeting detailed below, the City should first undertake a comprehensive review of all services provided. By defining these services and setting a minimum standard for the delivery of those services a model could be developed that prioritizes where potential reductions in service level could take place with the least overall impact to the citizens of Chula Vista. Changing our Service Delivery Model – In order to balance the City’s budget in future years, a change in the service delivery model may be required within some divisions or departments. This is different than simply contracting out or reducing service levels, but rather emphasizes trying a new way to deliver services currently provided to our constituents. A recent example would be the purchase of a mobile application that citizens can use to notify the City of items requiring maintenance throughout the City. Prior to the mobile application citizens would have to call or email the City, which is less efficient than the mobile application currently used. The City should review how other governmental agencies are providing services to determine if any new and innovative service delivery models exist that can be implemented to offset future cost increases. Fees/Cost Recovery – In general, local governments provide many services to the general population at no charge (ex. Police, Fire, Road Maintenance, Park Maintenance, etc.). These services are paid for with general revenues that the City receives including sales tax, property tax, and a variety of other smaller general revenues. Cities also provide many services that are a specific benefit to the party requesting the service. Reviewing development plans, inspecting buildings, renting a park space, etc. are all examples of services the City provides that are paid directly by a citizen or developer. The City’s current master fee schedule was adopted to set the fees for all services the City provides directly to a citizen or developer. In practice fees should be set to recover all costs. Some services are subsidized by the City in order to encourage participation in a program or event. It is important to review all subsidized fees periodically to assess the feasibility of continuing to subsidize these services in the future. Priority Based Budgeting – During the recession the City put together a Fiscal Recovery Plan. The plan detailed the steps necessary to navigate through the worst recession in over eighty years by prioritizing divisions and functions and making reductions where necessary in order to balance the budget. By taking a bottom up approach, as discussed in the service levels section, the City could review and classify all services by priority in order to identify functions and programs that can 832017-05-23 Agenda Packet Page 312 FY2018 City of Chula Vista Proposed Budget be restructured either through attrition or reorganization. Some finance officers refer to this as “zero based budgeting” because it starts with a blank budget and funds are allocated in priority order until all funds are allocated. Competitive Purchasing – The City’s Municipal Code and Charter set competitive bidding requirements on materials, supplies, equipment, and services that the City procures. The minimum threshold of those competitive requirements starts at $10,000 for a single purchase. The reason that cities have minimum bidding thresholds is because at some point it becomes an administrative burden to try and get quotes or bids on smaller dollar items. With more powerful online procurement tools, the City now has the ability to get bids extremely efficiently. Procurement cards also provide incentives and negotiated pricing when the City uses them for purchases. Consideration should be made to lower the bidding threshold for certain types of purchases in order to achieve the highest value added procurement program possible. Other procurement related money saving ideas include purchasing manufacturer refurbished items, floor models, certified pre‐owned, and alternative product selection (higher value, lower cost). Municipal Code/Charter Updates – The City’s Municipal Code and Charter lay out the specific terms in which the City must operate. Some areas of the code and Charter are very specific, while other are more general, allowing for some flexibility to City staff when dealing with unique situations. Cities must follow all federal and state laws and codes, but Charter cities such as Chula Vista may impose stricter rules and requirements upon which the City is governed. Some of these rules require greater resources to be spent in order to remain in compliance as compared to more lenient state laws. A thorough review of the existing Charter and Municipal Code may be reveal potential money saving opportunities that could be recommended to Council for consideration. POTENTIAL SOLUTIONS TO RESOLVE STRUCTURAL INFRASTRUCTURE DEFICIT Revenue Measures (Sales Tax, Property Tax) – The City’s assets continue to age and will require additional repair and rehabilitation in the coming decade and beyond. Measure P, passed in November 2016 will provide much needed funding for a significant portion of the City’s Asset Management Program over the next ten years. Many of the solutions mentioned in the operating section overlap into the infrastructure section. These include Public/Private Partnerships, Competitive Purchasing, Use of One‐Time Funds, and Service Levels. CONCLUSION In order to preserve and maintain the valuable resources and quality of life the citizens have enjoyed over the years, the City will need to make a concerted effort to adopt several of the solutions mentioned above. Proactive planning and a commitment to a fiscally sustainable service delivery model will be required. 842017-05-23 Agenda Packet Page 313 FY2018 City of Chula Vista Proposed Budget DEVELOPMENT SERVICES FUND 852017-05-23 Agenda Packet Page 314 862017-05-23 Agenda Packet Page 315 FY2018 City of Chula Vista Proposed Budget Development Services Fund The Development Services fund accounts for revenues and expenditures related to the processing of development plans and permits. The fund provides Planning, Building, Engineering, Landscape Architecture, and permitting services to property owners, developers, and the City as required for the entitlement and/or improvement of property. The services provided encompass most development activities, including land use entitlements; public infrastructure, open space, and landscape planning; public infrastructure construction, grading and building permits. Historically, the staff involved in the processing of development plans and permits were reflected in the City’s General Fund. Beginning in fiscal year 2008‐09, all the staff involved in the processing of development plans and permits were budgeted directly in the Development Services Fund. Consolidating all development service cost centers in a single fund clearly delineates development related costs and revenues from General Fund supported services; thereby making the nexus between development related activities, costs, fees, and revenues more transparent. This also allows operating expenses to be adjusted to coincide with changes in demand for development services. This adjustment of operating expenses aids in avoiding impacts to the General Fund when revenue fluctuations occur as result of changes in development activity. Beginning in fiscal year 2011‐12, the Development Services fund was accounted for as an enterprise fund. REVENUES The proposed fiscal year 2017‐18 budget reflects the continued effort of balancing development related resources along with the demand for development related services. Fiscal year 2017‐18 revenues are projected to be sufficient to support projected expenditures. Development related revenues consist of two categories: development processing fee revenues and deposit based revenues. Development processing fee revenues include building permits, planning fees, other building department fees, and engineering fees. Deposit based revenues are generated through staff time reimbursements related to specific projects. The table below provides a comparison of the actual revenue for fiscal year 2015‐16 compared to the estimated fiscal year 2017‐18 revenues. The City is anticipating that the following major projects will continue to move forward in fiscal year 2017‐18: Bayfront Redevelopment Project Millenia Project Freeway Commercial North Otay Ranch Villages University Land Entitlement Projects The following table compares the fiscal year 2017‐18 estimated revenues to the fiscal year 2016‐17 adopted budget revenues. Development Services Fund Revenues Fiscal Years 2016 to 2018 Category FY 2015‐16 Actual FY 2016‐17 Adopted FY2017‐18 Proposed Change %Change Other Local Taxes 8,114$ 7,000$ 7,000$ ‐$ 0% Licenses and Permits 2,070,899$ 1,905,312$ 2,062,629$ 157,317$ 8% Charges for Services 4,012,746$ 5,691,872$ 5,697,122$ 5,250$ 0.1% Other Revenue 472,010$ 1,209,147$ 1,209,147$ ‐$ 0% Transfers In 626,616$ 841,959$ 863,791$ 21,832$ 3% Total Revenues 7,190,385$ 9,655,290$ 9,839,689$ 184,399$ 1.9% 872017-05-23 Agenda Packet Page 316 FY2018 City of Chula Vista Proposed Budget Projections for fiscal year 2017‐18 revenues were based on a trend analysis of fiscal year 2015‐16 actual revenues and current fiscal year 2016‐17 projections. Staff has taken into account the revenue changes needed as part of resource realignment and cost recovery model. A summary of the notable changes by category are listed below: Licenses and Permits – The increase in this category of $157,317 reflects the projected increase in development activity, mainly in building permit activity. Charges for Service – The $5,250 increase in this category reflects increases in staff time reimbursements related to the workload anticipated for major projects. Transfers In – The transfers in category increase is due to a reimbursement from the general fund for software expenses. EXPENDITURES The fiscal year 2017‐18 proposed budget includes funding for 50.0 positions in the Development Services Fund. A summary of the notable changes between the fiscal year 2016‐17 adopted budget to the fiscal year 2017‐18 proposed budget by category are listed as follows: Personnel Services – This category reflects a net increase of $306,886 when compared to the fiscal year 2016‐17 adopted budget. The increase can be attributed to the annualized costs of salary increases to various personnel costs including any approved MOU negotiated salary increases, scheduled step increases, a 2% wage inflation estimate, overtime, PERS, flex/insurance, and Worker’s Comp charges. Supplies and Services – The proposed budget reflects an increase of $26,110 in this category. This increase is due to software expenses and adjustments based on prior year actuals, in order to provide sufficient resources to process pending development projects. Utilities – The utilities category reflects the projected amounts necessary for fiscal year 2017‐ 18 projected utility expenses. As illustrated in the following table, Personnel Services expenditures in the Development Services Fund are the largest component of the Fund’s expenditures, much the same as the City’s General Fund budget. The Transfers Out expenditure category reimburses the General Fund for citywide and departmental overhead. Reimbursed citywide overhead includes support costs associated with Finance, Human Resources, Information Technology Services, Custodial Services, and City Attorney. Development Services Fund Expenditures Fiscal Year 2016 to 2018 Category FY 2015‐16 Actual FY 2016‐17 Adopted FY 2017‐18 Proposed Change %Change Personnel Services 5,497,080$ 6,861,010$ 7,167,896$ 306,886$ 4% Supplies and Services 348,734$ 561,985$ 588,095$ 26,110$ 5% Other Expenses 251,692$ 195,000$ 195,000$ ‐$ 0% Capital 9,072$ 85,500$ 85,500$ ‐$ 0% Transfers Out 1,187,557$ 1,796,648$ 1,796,648$ ‐$ 0% Utilities 6,194$ 5,000$ 5,650$ 650$ 13% Total Expenditures 7,300,329$ 9,505,143$ 9,838,789$ 333,646$ 4% 882017-05-23 Agenda Packet Page 317 DEVELOPMENT SERVICES FUND 408 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Services 5,459,307 5,497,080 6,861,010 7,167,896 Supplies and Services 262,395 348,734 561,985 588,095 Other Expenses 156,703 251,692 195,000 195,000 Capital 9,072 9,072 85,500 85,500 Utilities 4,723 6,194 5,000 5,650 Transfers Out 1,328,299 1,187,557 1,796,648 1,796,648 TOTAL EXPENDITURES $7,220,499 $7,300,329 $9,505,143 $9,838,789 REVENUES Other Local Taxes 7,226 8,114 7,000 7,000 Licenses and Permits 1,949,675 2,070,899 1,905,312 2,062,629 Charges for Services 3,269,983 4,012,746 5,691,872 5,697,122 Other Revenue 903,584 472,010 1,209,147 1,209,147 Transfers In 448,687 626,616 841,959 863,791 TOTAL REVENUES $6,579,155 $7,190,385 $9,655,290 $9,839,689 ($641,344) ($109,944) $150,147 $900NET FUND ACTIVITY 892017-05-23 Agenda Packet Page 318 DEVELOPMENT SERVICES FUND FUND 408 STAFFING SUMMARY - 408 ADOPTED MIDYEAR CHANGES PROPOSEDBUDGET CATEGORY FY 2017-18FY 2017-18FY 2016-17FY 2016-17 ASSOC ENGINEER 3.00 - - 3.00 ASSOC PLAN CHECK ENGINEER 3.00 - - 3.00 ASSOCIATE PLANNER 5.00 - - 5.00 BUILDING INSPECTION MGR 1.00 - - 1.00 BUILDING INSPECTOR II 4.00 - - 4.00 BUILDING INSPECTOR III 2.00 - - 2.00 BUILDING OFF/CODE ENF MGR 1.00 - - 1.00 DEVELOPMENT SERVICES TECH I 1.00 - - 1.00 DEVELOPMENT SVCS TECH II 3.00 - - 3.00 DEVELOPMENT SVCS TECH III 2.00 - - 2.00 DEVLPMT SVCS COUNTER MGR 1.00 - - 1.00 ENGINEERING TECH II 1.00 - - 1.00 LANDSCAPE ARCHITECT 4.00 - - 4.00 MANAGEMENT ANALYST 1.00 - - 1.00 PLAN CHECK SUPERVISOR 1.00 - - 1.00 PLANNING MANAGER 1.00 - - 1.00 PRINCIPAL CIVIL ENGINEER 1.00 - - 1.00 PRINCIPAL LANDSCAPE ARCHITECT - 1.00 - 1.00 PRINCIPAL PLANNER 2.00 (1.00)- 1.00 SECRETARY 1.00 - - 1.00 SR BUILDING INSPECTOR 1.00 - - 1.00 SR CIVIL ENGINEER 2.00 - - 2.00 SR ENGINEERING TECHNICIAN 1.00 - - 1.00 SR PLAN CHECK TECHNICIAN 1.00 - - 1.00 SR PLANNER 4.00 - - 4.00 SR PROJECT COORDINATOR 1.00 - - 1.00 SR SECRETARY 1.00 - - 1.00 TRANSPORTATION ENGINEER W/CERT 1.00 - - 1.00 50.00 - - TOTAL AUTHORIZED POSITIONS 50.00 902017-05-23 Agenda Packet Page 319 FY2018 City of Chula Vista Proposed Budget SUCCESSOR AGENCY AND HOUSING FUNDS Successor Agency Funds Housing Authority Funds 912017-05-23 Agenda Packet Page 320 922017-05-23 Agenda Packet Page 321 FY2018 City of Chula Vista Proposed Budget Successor Agency Funds On December 29, 2011, the California Supreme Court upheld AB x1 26 dissolving California redevelopment agencies. Effective February 1, 2012, all redevelopment agencies were dissolved and the City of Chula Vista assumed the role of Successor Agency (resolution 2011‐ 164). The Successor Agency is responsible for the wind down of the former Redevelopment Agency activities and obligations. The act of winding down the former Redevelopment Agency is significant. The Successor Agency will continue to oversee and implement all legally obligated contracted work, projects and programs as well as dispose of the former Redevelopment Agency assets. Since approximately 68% of the former Redevelopment Agency‐owned land (24 acres of 35.24 acres) is contaminated there are clean up requirements as well as remediation that will be necessary to dispose of these properties. Significant administrative obligations will continue to exist in the preparation of budgets and documentation to be submitted to and reviewed by the Successor Agency, Oversight Board, County of San Diego and the State Department of Finance. As required by AB x1 26, an Oversight Board, composed of affected taxing entities within the City, was created. The primary responsibility of the Oversight Board is reviewing and approving the Recognized Obligation Payment Schedule and serving in a fiduciary role to the taxing entities that the Oversight Board represents. Some historical information follows regarding the former Redevelopment Agency. The Chula Vista Redevelopment Agency was created on October 24, 1972 by City Council Ordinance. The goals of the former Redevelopment Agency were to reduce blight and to encourage new development, reconstruction, and rehabilitation of residential, commercial, industrial, and retail uses. Since the Agency’s creation, the City adopted and amended six project areas to encompass a total of approximately 3,563 acres of City territory. Land uses within these areas are mostly commercial and industrial, but also includes some residential and public uses (e.g., governmental administrative centers, corporation yards, streets, etc.). FUND DESCRIPTIONS The Successor Agency budget is organized into Redevelopment Obligation Retirement Fund (RORF) and debt service funds. The RORF accounts for the staffing and other expenditures required in winding down activities of the former Redevelopment Agency. The Debt Service funds are used to pay for the former Redevelopment Agency’s debt service on its outstanding Tax Allocation Bonds, loans and other debt of the former Redevelopment Agency. Several funds were eliminated as a result of the dissolution of the Redevelopment Agency. The eliminated funds are former operating funds 317, 611, 651 and pass‐through funds 671‐675. In addition the debt service funds listed below replace funds 691 and 693‐697. Operating Funds Fund 318: Redevelopment Obligation Retirement Fund (RORF) The RORF will serve as the primary operating funds in the winding down of the former Redevelopment Agency. This fund will be used to pay the documented enforceable obligations of the former redevelopment agency that have been approved by the Successor Agency Oversight Board and the State Department of Finance. Fund 319: Successor Agency Housing Fund The City’s Housing Authority became the Successor Housing Agency. This fund accounts for all assets (everything but fund balance) originally held by the Low and Moderate Income Housing fund and will account for activities similar to the Low and Moderate Income Housing program. The fund revenues are not discretionary and must be used for the production of affordable housing. Debt Service Funds The Debt Service funds are used to pay for former Redevelopment Agency debt service on its outstanding Tax Allocation Bonds, loans and other 932017-05-23 Agenda Packet Page 322 FY2018 City of Chula Vista Proposed Budget debt of the former Redevelopment Agency. Fund 692: Long Term Advances Debt Service Fund – Redevelopment Agency This fund was established to account for Redevelopment Agency inter‐fund loans. Fund 661: 2005 Taxable Revenue Bonds Series A – CRA/ERAF Loan Program In April 2005, the Agency entered into a Loan Agreement with the California Statewide Communities Development Authority to borrow the amount of $765,000. This amount was used to pay the Agency’s portion of the 2005 Educational Revenue Augmentation Fund (ERAF) to the County of San Diego pursuant to Section 33681.12 of the California Health and Safety Code. This loan was paid off in fiscal year 2014‐ 15. Fund 662: 2006 Taxable Revenue Bonds Series A – CRA/ERAF Loan Program In April 2006, the Agency entered into a Loan Agreement with the California Statewide Communities Development Authority to borrow the amount of $930,000. This amount was used to pay the Agency’s portion of the 2006 Educational Revenue Augmentation Fund (ERAF) to the County of San Diego pursuant to Section 33681.12 of the California Health and Safety Code. This loan was paid off in fiscal year 2015‐ 16. Fund 663: 2006 Senior Tax Allocation Refunding Bonds, Series A In July 2006, the Redevelopment Agency issued the 2006 Senior Tax Allocation Bonds, Series A in the amount of $13,435,000 to refinance the Agency’s outstanding Bayfront/Town Centre Redevelopment Project 1994 Senior Tax Allocation Refunding Bonds Series A (the “1994 A Bonds). The original bonds were issued to finance improvements in the Bayfront/Town Centre Project Areas. The bonds have been refinanced as a part of the 2016 Tax Allocation Refunding Bonds. Fund 664: 2006 Subordinate Tax Allocation Refunding Bonds, Series B In July 2006, the Redevelopment Agency issued the 2006 Subordinate Tax Allocation Bonds, Series B in the amount of $12,325,000 to refinance the Agency’s outstanding Bayfront/Town Centre Redevelopment Project 1994 Senior Tax Allocation Refunding Bonds Series D (the “1994 D Bonds) and the 1994 Subordinate Tax Allocation Refunding Bonds, Series C (the 1994 C Bonds) The original bonds were issued to finance improvements in the Bayfront/Town Centre Project Areas. The bonds have been refinanced as a part of the 2016 Tax Allocation Refunding Bonds. Fund 665: RDA 2008 Tax Allocation Refunding Bonds (TARBs) This fund was established to account for the debt service payments for the refunding of the Redevelopment Agency 2000 Tax Allocation Bonds (Merged Redevelopment Project) in the amount of $21,625,000. The Merged Redevelopment Project was created on August 22, 2000, pursuant to an amendment to the redevelopment plans for three of the Agency’s four existing redevelopment projects, the Town Centre II Project Area, the Otay Valley Project Area and the Southwest Project Area. The Merged Project Area was amended in 2004 adding 494 acres. The Bonds were issued to provide funds for the repayment of certain obligations of the Merged Redevelopment Project and other interfund loans, and for general redevelopment purposes. The bonds have been refinanced as a part of the 2016 Tax Allocation Refunding Bonds. Fund 666: 2016 Tax Allocation Refunding Bonds In July 2016, the Successor Agency issued the Tax Allocation Refunding Bonds in the amount of $29,315,000 to refinance the Agency’s outstanding 2006 Senior Tax Allocation Refunding Bonds, Series A, 2006 Subordinate Tax Allocation Refunding Bonds, Series B, and the 2008 Tax Allocation Refunding Bonds. The Annual Debt Service is paid from property tax increments generated in the project areas. The 942017-05-23 Agenda Packet Page 323 FY2018 City of Chula Vista Proposed Budget term of the bonds runs through 2036. REVENUES A summary of the notable changes by category are listed below: Property Taxes – The revenues in this category are received due to the dissolution of the Redevelopment Agency. Property tax increment revenues are now received by the County of San Diego and will be distributed to the Successor Agency based on documented enforceable obligations that have been approved by both the Successor Agency Oversight Board and the State Department of Finance. Use of Money & Property – The Use of Money & Property category has increase by $200,000 for the projected revenue increases from the low income Landings project. Other Revenue – The revenue in this category has increased by $200,000 due to an expected residual receipt increase. Transfers In – Transfer‐In amount has decreased compared to prior year by $960,222 due to the last SERAF payment being made in fiscal year 2016‐17. The fiscal year 2017‐18 proposed budget amount is $3,709. The table below provides a comparison of the actual revenues for fiscal year 2015‐16 to the estimated fiscal year 2017‐18 revenues. The table does not reflect the revenue budget of the debt service funds which are reflected in the debt service section of the budget document. Redevelopment/Successor Agency Operating Fund Revenues Fiscal Years 2016 to 2018 Category Funds 318/319 FY 2015‐16 Actual Funds 318/319 FY 2016‐17 Adopted Funds 318/319 FY 2017‐18 Proposed Change Property Taxes 5,314,687$ 4,967,149$ 4,967,150$ 1$ Use of Money & Property 1,051,598$ 15,000$ 215,000$ 200,000$ Charges for Services 6,208$ ‐$ ‐$ ‐$ Revenue from Other Agencies ‐$ ‐$ ‐$ ‐$ Other Revenue 629,292$ ‐$ 200,000$ 200,000$ Transfers In ‐$ 963,931$ 3,709$ (960,222)$ Total Revenues 7,001,785$ 5,946,080$ 5,385,859$ (560,221)$ 952017-05-23 Agenda Packet Page 324 FY2018 City of Chula Vista Proposed Budget EXPENDITURES Expenditures for fiscal year 2017‐18 are winding down for the former Redevelopment Agency and Low and Moderate Income Housing activities and documented enforceable obligations. Supplies and Services – The budget has decreased by $105,618 from fiscal year 2016‐17 adopted budget. This is due to lower anticipated project expenses and consultant services. Other Expenses – The Other Expenses category reflects an increase of $970,957. This increase is for anticipated staff time reimbursements on Low Mod Housing activities and loans for Low Mod projects. Capital – The capital category reflects the anticipated amounts necessary for the fiscal year 2017‐18 budget. Transfers Out – The transfers out expenditure category accounts for the required debt service for the Successor Agency. Bonded debt service for the 2016 TARBS is approximately $2.6 million. The Transfers Out category has decreased due to the refunding of the 2006 Senior Tax Allocation Refunding Bonds, Series A, 2006 Subordinate Tax Allocation refunding Bonds, Series B and the 2008 Tax Allocation Refunding Bonds. The table below provides a comparison of the actual expenditures for fiscal year 2015‐16 to fiscal year 2017‐18 proposed budget expenditures. The table does not reflect the debt service expenditure budget which is discussed in the debt service section of this document. Redevelopment/Successor Agency Operating Fund Expenditures Fiscal Year 2016 to 2018 Category Funds 318/319 FY 2015‐16 Actuals Funds 318/319 FY 2016‐17 Adopted Funds 318/319 FY 2017‐18 Proposed Change Personnel Services ‐$ ‐$ ‐$ ‐$ Supplies and Services 78,012$ 117,218$ 11,600$ (105,618)$ Other Expenses 2,721,234$ 4,274,026$ 5,244,983$ 970,957$ Capital 2,535$ 12,040$ 6,000$ (6,040)$ Transfers Out 5,062,975$ 4,504,931$ 2,563,000$ (1,941,931)$ CIP Project Expenditures ‐$ ‐$ ‐$ ‐$ Non‐CIP Project Expenditures ‐$ ‐$ ‐$ ‐$ Utilities 1,484$ 1,700$ ‐$ (1,700)$ Total Expenditures 7,866,240$ 8,909,915$ 7,825,583$ (1,084,332)$ 962017-05-23 Agenda Packet Page 325 REDV OBLIGATION RETIREMENT FUND 318 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 60,180 35,030 54,218 6,000 Other Expenses 516,109 792,705 712,962 629,000 Capital 1,672 0 6,040 0 Utilities 1,538 1,484 1,700 0 Transfers Out 5,561,845 5,062,975 4,504,931 2,563,000 TOTAL EXPENDITURES $6,141,344 $5,892,194 $5,279,851 $3,198,000 REVENUES Property Taxes 6,179,288 5,314,687 4,967,149 4,967,150 Use of Money & Property 15,778 42,310 0 0 Transfers In 0 0 0 3,709 TOTAL REVENUES $6,195,066 $5,356,997 $4,967,149 $4,970,859 $53,722 ($535,197) ($312,702) $1,772,859NET FUND ACTIVITY 972017-05-23 Agenda Packet Page 326 HOUSING - SA FUND 319 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 25,091 42,982 63,000 5,600 Other Expenses 178,532 1,928,529 3,561,064 4,615,983 Capital 3,685 2,535 6,000 6,000 TOTAL EXPENDITURES $207,308 $1,974,046 $3,630,064 $4,627,583 REVENUES Use of Money & Property 763,355 1,009,288 15,000 215,000 Charges for Services 3,358 6,208 0 0 Other Revenue 199,741 629,292 0 200,000 Transfers In 0 0 963,931 0 TOTAL REVENUES $966,454 $1,644,788 $978,931 $415,000 $759,146 ($329,258) ($2,651,133) ($4,212,583)NET FUND ACTIVITY 982017-05-23 Agenda Packet Page 327 REDEVELOPMENT AGENCY FUND 600 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Other Expenses 1,274,067 9,496 0 0 TOTAL EXPENDITURES $1,274,067 $9,496 $0 $0 REVENUES Use of Money & Property 371 1,613 0 0 TOTAL REVENUES $371 $1,613 $0 $0 ($1,273,696) ($7,883)$0 $0NET FUND ACTIVITY 992017-05-23 Agenda Packet Page 328 DEBT SERVICE - SUCCESSORY AGENCY FUND 660 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 8,223 12,595 15,000 5,000 Other Expenses 2,739,071 2,069,162 3,876,000 1,523,000 Transfers Out 0 0 963,931 3,709 TOTAL EXPENDITURES $2,747,294 $2,081,757 $4,854,931 $1,531,709 REVENUES Use of Money & Property 88,504 52,069 0 0 Other Revenue 0 800 0 0 Transfers In 5,561,843 5,062,975 4,504,931 2,563,000 TOTAL REVENUES $5,650,347 $5,115,844 $4,504,931 $2,563,000 $2,903,053 $3,034,087 ($350,000) $1,031,291NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES 05 ERAF - SA 0 0 1,8486615,880 06 ERAF - SA 5,868 0 1,86166216,206 06 TABs Series A - SA 395,656 1,019,000 0663562,142 06 TABs Series B - SA 436,242 992,000 0664578,085 08 TABs - SA 923,990 1,530,000 06651,263,843 2016 TARBs 0 0 1,178,0006660 Successor Agency Long-term Deb 320,001 1,313,931 350,000692321,138 $2,081,757 $4,854,931 $1,531,709$2,747,294TOTAL EXPENDITURES REVENUES 05 ERAF - SA 833 0 0661100,876 06 ERAF - SA 127,785 0 0662129,277 06 TABs Series A - SA 1,027,739 1,019,000 06631,000,177 06 TABs Series B - SA 995,724 992,000 0664989,027 08 TABs - SA 1,541,088 1,530,000 06651,503,241 2016 TARBs 0 0 2,563,0006660 Successor Agency Long-term Deb 1,422,675 963,931 06921,927,749 $5,115,844 $4,504,931 $2,563,000$5,650,347TOTAL REVENUES $2,903,053 $3,034,087 ($350,000) $1,031,291NET FUND ACTIVITY 1002017-05-23 Agenda Packet Page 329 FY2018 City of Chula Vista Proposed Budget Housing Authority Funds The Housing Authority was formed in 1993. A Housing Authority can provide tax‐exempt bond financing, own and operate housing, and operate various housing programs. The section 8 rental assistance program including Public Housing in Chula Vista is operated by the County of San Diego Housing Authority. With the elimination of the City’s redevelopment agency in 2012, the Housing Authority assumed the housing functions of the former Redevelopment Agency, becoming a “Successor Housing Agency”. Housing Authority staff provides comprehensive housing services for the City including new development and program administration. The Chula Vista Housing Authority fund is the clearinghouse for all housing related staff activity. Included in this fund are personnel expenses which are reimbursed by various funding sources such as the US Department of Housing and Urban Development Grant Funds and Low/Moderate Income Housing Funds. The Housing Fund will receive $0.9 million in staff time reimbursements for managing the City’s Affordable Housing, administering State and Federal Grant Programs, and for monitoring bond covenants for affordable housing bonds issued by the City’s Housing Authority. The Housing Authority focuses on the development of sustainable neighborhoods through a variety of investments such as: Production of affordable rental housing through new construction and acquisition/rehabilitation Provide rental assistance Expand home ownership opportunities Oversee contracts with social service agencies for the provision of services to low/moderate income residents Develop and implement policies and programs related to affordable housing FUND DESCRIPTIONS Fund 313: Chula Vista Housing Authority The Chula Vista Housing Authority Fund accounts for all housing related activities not considered eligible for reimbursement by other sources. The Lofts on Landis project (pictured above) is an example of the type of affordable housing product, developed with Housing Authority Funds. The project consists of a mixed‐use development with 33 residential units and 1,253 square feet. of office space for Family Health Centers. 1012017-05-23 Agenda Packet Page 330 1022017-05-23 Agenda Packet Page 331 HOUSING PROGRAM FUND 310 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Services 557,357 583,588 630,074 650,131 Supplies and Services 26,218 54,608 88,800 179,000 Other Expenses 0 372,914 0 1,010,000 Utilities 962 370 1,100 1,155 Transfers Out 177,145 155,968 254,697 254,697 TOTAL EXPENDITURES $761,682 $1,167,448 $974,671 $2,094,983 REVENUES Use of Money & Property 15,940 16,424 0 0 Charges for Services 121,793 195,116 100,000 100,000 Other Revenue 715,937 659,987 874,671 994,983 TOTAL REVENUES $853,670 $871,527 $974,671 $1,094,983 $91,988 ($295,921)$0 ($1,000,000)NET FUND ACTIVITY 1032017-05-23 Agenda Packet Page 332 HOUSING PROGRAM FUND FUND 310 STAFFING SUMMARY - 313 ADOPTED MIDYEAR CHANGES PROPOSEDBUDGET CATEGORY FY 2017-18FY 2017-18FY 2016-17FY 2016-17 HOUSING MANAGER 1.00 - - 1.00 SR MANAGEMENT ANALYST 2.00 - - 2.00 SR PROJECT COORDINATOR 1.00 - - 1.00 4.00 - - TOTAL AUTHORIZED POSITIONS 4.00 1042017-05-23 Agenda Packet Page 333 FY2018 City of Chula Vista Proposed Budget SEWER FUNDS 1052017-05-23 Agenda Packet Page 334 1062017-05-23 Agenda Packet Page 335 FY2018 City of Chula Vista Proposed Budget Sewer Funds The Sewer enterprise funds account for revenues and expenditures related to the City’s Sewer programs, including maintenance and expansion of the City’s conveyance system and payment of San Diego Metro wastewater treatment costs. The City of Chula Vista provides wastewater conveyance and treatment services to approximately 54,578 billing accounts, including residential and non‐ residential uses. The wastewater generated by Chula Vista customers is collected and sent to treatment facilities in the South Bay and Point Loma through the City’s extensive sewer collection system, which consists of 14 pump stations and over 500 miles of sewer pipe. The San Diego Metropolitan Wastewater System (SDMWS) provides wastewater treatment services to the City of Chula Vista and most of the region on a contract basis (the City’s budget was $25 million in fiscal year 2017‐18 for treatment services). The latest Point Loma Treatment Plant Advanced Primary waiver application was submitted in 2015 to the Regional Water Quality Control Board (RWQCB) and the Environmental Protection Agency (EPA). The Waiver was approved by said entities in April 2017 and is now ready for the concurrence hearing by the California Coastal Commission. The costs associated with the special conditions on the waiver related to the Pure Water Program are still unknown but are expected to increase the City’s sewer treatment budget as shown above. The City is currently analyzing options to secure sufficient treatment capacity to see the City through build out. Per the 2014 Wastewater Master Plan, the City will need approximately 29.89 MGD at build out. However, the drought state mandated water usage cuts and the public conservation trends will substantially lower the City’s required sewer treatment capacity. This treatment capacity may be provided by either purchasing additional treatment capacity in the San Diego Metro Wastewater System or construction of a wastewater reclamation plant in Chula Vista. The following figure illustrates the City’s current trunk sewer network, which conveys flows to the San Diego Metro trunk sewer (shown in red). For efficiency, some sewer lines are shared by the County of San Diego (County) and the City through transportation agreements. The City has an existing transportation agreement with the County to use the Spring Valley Trunk sewer (shown in green). An additional transportation agreement is currently being processed that would allow County sewer to flow through the Salt Creek trunk (Shown in cyan) from the County’s Villages located to the east of the City. City’s Current Trunk Sewer Network REVENUES The Sewer Fund derives the majority of its revenue from various service charges that are collected from system users. This fund also derives revenues from other sources such as permit fees for new connections to the sewer system, interest earnings from investments, development impact fees, transfers from other funds designated to support Sewer fund operations. Other revenues include revenue reimbursements from other city funds and various service charges. Sewer revenues are projected to decrease by $0.07 million in the fiscal year 2017‐18 proposed budget. This is due to a $0.3 million reduction in the Transfer In from the Long‐Term Debt Service Fund based on the balance available to pay the inter‐fund loan between the funds. This reduction is partially offset by an increase of $0.2 million in the Transfer in from the Salt Creek Sewer Basin Fund, and an increase of $0.07 in other revenues from increased services charges. Sewer Fund revenues are summarized in the following table: 1072017-05-23 Agenda Packet Page 336 FY2018 City of Chula Vista Proposed Budget Sewer Fund Revenues Category FY 2015‐16 Actual FY 2016‐17 Adopted FY2017‐18 Proposed Change %Change Licenses and Permits 40,502$ 40,000$ 40,000$ ‐$ 0.0% Use of Money & Property 1,286,717$ 301,726$ 301,726$ ‐$ 0.0% Charges for Services 35,316,229$ 33,231,199$ 33,231,199$ ‐$ 0.0% Other Revenue 1,198,517$ 345,000$ 415,000$ 70,000$ 20.3% Transfers In 8,438,983$ 485,000$ 350,000$ (135,000)$ ‐27.8% Total Revenues 46,280,948$ 34,402,925$ 34,337,925$ (65,000)$ ‐0.2% Note: Revenue amounts include Sewer Operating Funds: 411, 412, 413, 414, and 428. EXPENDITURES Sewer fund operations and capital programming contains no General Fund contribution. Sewer fund operations and capital programming costs are offset by fees paid by residential and non‐residential users. In addition, other revenue sources generated within the Sewer fund through normal operations that fund 46.0 permanent positions that are contained in the fiscal year 2017‐18 proposed budget. Changes to the Sewer Fund proposed budget for fiscal year 2017‐18 are as follows: Personnel Services – Personnel services in the fiscal year 2017‐18 are increasing by $167,537. This increase represents the annualized cost of wage increases previously approved by City Council, and an estimated 2% wage inflation for all employee groups in fiscal year 2017‐18. Personnel Services also reflects cost increases in Workers Compensation Charges, Flex (medical insurance), and PERS (retirement benefits). Supplies and Services – Supplies and services costs are increasing by $5.7 million. This change is primarily due to increased contracted services for wastewater treatment for the Pure Water San Diego program ($5.6) million. Other increases include: ($46,000) for software maintenance and ($20,000) for Memberships and Dues. These increases are partially offset by a decrease in Fleet Maintenance charges ($53,400). Other Expenses – This category reflects an increase of $140,000. This increase consists of a $125,000 increase for refunds and a $25,000 increase for anticipated growth in Credit Card Transaction Fees. Capital – Capital expenses are increasing by $69,000 in comparison to fiscal year 2016‐17 adopted budget for the replacement of a vehicle within the Sewer Service Revenue fund. CIP Project Expenditures – Proposed fiscal year 2017‐18 CIP Projected Expenditures are decreasing by $345,000 from the 2016‐17 adopted budget. This represents the net change between $1.65 million for project related expenditures contained in fiscal year 2016‐17 budget that were not carried forward, and $1.3 million of project expenditures programmed in the fiscal year 2017‐18 proposed budget. The City continues to focus on its Annual Sewer Rehabilitation Program, which expends approximately $1.0 million to $2.0 million annually for the replacement and rehabilitation of sewer pipes, connections between sewer mains and laterals, access roads, and access covers. The City also utilizes standardized evaluation and ranking criteria in televising and evaluating the condition of sewers in order to ensure that the most critically impacted sewer infrastructure is replaced or rehabilitated first. To date, the funds collected from City’s rate payers have been sufficient to maintain and operate the City’s wastewater collection system as well as to pay for the treatment of the wastewater. 1082017-05-23 Agenda Packet Page 337 FY2018 City of Chula Vista Proposed Budget Pictured above: Point Loma Treatment Facility In order to ensure the future adequacy of the sewer funds, City Council has adopted an updated sewer rate case study that set the sewer rates for the next five years that went into effect July 2014. One of the issues considered of significant impact to the sewer rates for the City is the Point Loma Treatment Plant (PLTP) Secondary Treatment Waiver. In 2010, the City of San Diego was successful in obtaining a five‐year waiver that allowed the continued operation of the PLTP at an advance primary level of sewer treatment before discharging into the ocean. The application for the next waiver will be submitted in 2015. The Waiver was approved in April 2017 by the RWQCB and the EPA and is now ready for the concurrence hearing by the California Coastal Commission. Expensive infrastructure investments are expected as a condition of the next waiver. The 2014 City of Chula Vista sewer rate adjustment will help pay for said infrastructure investments or the upgrade of the PLTP to secondary. In fiscal year 2007‐08 the City transitioned its Sewer funds from ‘special revenue’ funds to ‘enterprise’ funds. Enterprise funds may be used to report any activity for which a fee is charged to external users for goods or services, and are appropriate in situations wherein there is either a legal requirement or policy decision to recover costs of providing services for an activity. This change complies with the GFOA recommended accounting structure, should the City decide to issue bonds for capital improvements solely guaranteed by sewer fees and charges in the future. City staff expenditures incurred supporting wastewater system maintenance and operations are funded by the Sewer Service fund through a combination of direct expenditures and inter‐fund transfers. Positions 100% funded by Sewer funds (wastewater maintenance and wastewater engineering) are budgeted directly in the Sewer fund ($4.7 million in fiscal year 2016‐17). The remaining support staff is budgeted in either the General or Development Services funds. These positions are partially offset via inter‐fund transfers ($3.3 million in fiscal year 2016‐17). All supplies and services, capital, and utilities budgets associated with supporting the wastewater system are also budgeted in the Sewer Service fund in fiscal year 2016‐17. CAPITAL IMPROVEMENT PROJECTS The second highest commitment of CIP funding is for the Wastewater Management System (WMS). The appropriation for Wastewater projects is $1.3 million which represents 1.8% of the adopted CIP budget. The WMS is divided into two categories: Sewer Rehabilitation & Specific Sewer Improvements, and Sewer Pump Stations & Access Roads. Sewer Rehabilitation & Specific Sewer Improvements The annual Sewer and Manhole Rehabilitation project for FY17‐18 commits $400,000 for citywide work. A total of $200,000 is included to complete sewer improvements at various locations. Funding of $200,000 is included to continue manhole inspections to establish a baseline condition in order to preserve and extend service life and avoid failures of existing structures. Sewer Pump Stations and Access Roads A total of $100,000 is included to continue rehabilitation assessment efforts of various pump stations. Sewer access roads at various locations will be rehabilitated, at a cost of $400,000. Sewer Fund expenditures are summarized in the table on the following page. 1092017-05-23 Agenda Packet Page 338 FY2018 City of Chula Vista Proposed Budget Sewer Fund Expenditures Category FY 2015‐16 Actual FY 2016‐17 Adopted FY2017‐18 Proposed Change %Change Personnel Services 4,363,674$ 4,651,397$ 4,818,934$ 167,537$ 3.6% Supplies and Services 19,480,770$ 22,713,688$ 28,379,810$ 5,666,122$ 24.9% Other Expenses 5,773,878$ 285,000$ 425,000$ 140,000$ 49.1% Capital 17,679$ 1,340,200$ 1,409,200$ 69,000$ 5.1% Transfers Out 3,092,522$ 3,291,270$ 3,303,234$ 11,964$ 0.4% CIP Project Expenditures 1,509,089$ 1,675,000$ 1,330,000$ (345,000)$ ‐20.6% Utilities 265$ 315$ 331$ 16$ 5.1% Total Expenditures 34,237,877$ 33,956,870$ 39,666,509$ 5,709,639$ 16.8% Note: Expenditure amounts include Sewer Operating Funds: 411, 412, 413, 414, and 428. FUND DESCRIPTIONS Fund 411: Sewer Income Fund This fund is used to account for all revenues collected to recover the City’s costs incurred constructing the public wastewater system. The funds are collected from new properties receiving a permit to connect to the City’s wastewater collection system. The owner or person making the application for connection pays fees to the City as designated in the master fee schedule. All funds received may be used only for the acquisition, construction, reconstruction, maintenance and operation of sanitation or sewerage facilities, or to reimburse a subdivider or any person who has constructed sewer facilities benefiting other properties. The fund may also be used to reimburse the City for any expense incurred in connection with the construction and installation of any sewer facility including engineering work and acquisition of rights‐of‐way. Fund 412: Special Sewer Fund The Special Sewer Fund is used to account for the sale of the City’s excess Metropolitan Sewerage capacity. On December 17, 2013 Council approved closing this fund and transferring the available fund balance to the Trunk Sewer Capital Reserve Fund (Fund 413). Fund 413: Trunk Sewer Capital Reserve Fund The Trunk Sewer Capital Reserve Fund is used to account for sewerage facility participation fees received from the owner or person applying for a permit to develop or modify the use of any residential, commercial, industrial or other property, which is projected to increase the volume of flow in the City’s sewer system, as determined by the City Engineer. All revenue derived from the sewerage facility participation fee shall be used solely for: 1. Paying the cost and expense to repair, replace or enlarge trunk sewer facilities of the City so as to enhance efficiency of utilization and/or adequacy of capacity to serve the needs of the City, or; 2. Paying the cost and expense to plan and/or evaluate any future proposals for area‐wide sewage treatment and/or water reclamation systems or facilities. The City Council can appropriate the funds for another purpose, provided such purpose shall be for the planning, design, construction, maintenance or operations of sewage collection or treatment or water reclamation purposes. Fund 414: Sewer Service Revenue Fund The Sewer Service Revenue Fund is used to account for all monies collected from the monthly sewer service charge. Monies in this fund may be used for any and all sewer related activities. The primary use of these funds is the payment of the City’s annual San Diego Metropolitan Sewer Capacity and Maintenance fees and to pay the operational costs of the ‘in‐city’ sewer collection system. Fund 428: Sewer Facility Replacement Fund A portion of the revenues derived from the 1102017-05-23 Agenda Packet Page 339 FY2018 City of Chula Vista Proposed Budget monthly sewer service charge is deposited into the Sewerage Facilities Replacement Fund. Monies in this fund are used solely for the purpose of paying the cost of refurbishment and/or replacement of structurally deficient sewerage facilities including related evaluation, engineering, and utility modification costs. The City Council can appropriate the funds for another purpose provided such purpose is for the construction, maintenance, or operation of sewers or incidental thereto, including any charge for its collection. Funds 431, 432, 433: Sewer Development Impact Fee Funds These fees are levied against new development in specific areas of the City, based upon the sewer facility their project will impact. The monies collected are used to fund construction of public improvements designed to increase the capacity of the subject facilities, allowing the City to maintain service levels with increased demand. Included DIF programs are the Telegraph Canyon Sewer Basin DIF, the Poggi Canyon Sewer Basin DIF, and the Salt Creek Sewer Basin DIF. 1112017-05-23 Agenda Packet Page 340 1122017-05-23 Agenda Packet Page 341 SEWER FUNDS 410 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Services 4,283,250 4,363,674 4,651,397 4,818,934 Supplies and Services 20,863,370 19,480,770 22,713,688 28,379,810 Other Expenses 5,515,598 5,773,878 285,000 425,000 Capital 2,875 17,679 1,340,200 1,409,200 Utilities 183 265 315 331 Transfers Out 3,052,634 3,092,522 3,291,270 3,303,234 CIP Project Expenditures 839,303 1,509,089 1,675,000 1,330,000 TOTAL EXPENDITURES $34,557,213 $34,237,877 $33,956,870 $39,666,509 REVENUES Licenses and Permits 28,520 40,502 40,000 40,000 Use of Money & Property 628,219 1,286,717 301,726 301,726 Charges for Services 35,978,055 35,316,229 33,231,199 33,231,199 Other Revenue 5,406,099 1,198,517 345,000 415,000 Transfers In 118,250 8,438,983 485,000 350,000 TOTAL REVENUES $42,159,143 $46,280,948 $34,402,925 $34,337,925 $7,601,930 $12,043,071 $446,055 ($5,328,584)NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Sewer Income 1,471 0 04110 Trunk Sewer Capital Reserve 6,037,597 1,875,000 350,0004135,259,952 Sewer Service Revenue 27,125,298 31,931,870 37,866,50941428,395,567 Sewer Facility Replacement 1,073,511 150,000 1,450,000428901,694 $34,237,877 $33,956,870 $39,666,509$34,557,213TOTAL EXPENDITURES REVENUES Sewer Income 35,324 0 041114,589 Special Sewer 4 0 0412418 Trunk Sewer Capital Reserve 10,881,698 1,375,000 1,450,0004135,198,324 Sewer Service Revenue 33,107,865 31,361,199 31,431,19941435,082,271 Sewer Facility Replacement 2,256,057 1,666,726 1,456,7264281,863,541 $46,280,948 $34,402,925 $34,337,925$42,159,143TOTAL REVENUES $7,601,930 $12,043,071 $446,055 ($5,328,584)NET FUND ACTIVITY 1132017-05-23 Agenda Packet Page 342 SEWER FUNDS FUND 410 STAFFING SUMMARY - 414 ADOPTED MIDYEAR CHANGES PROPOSEDBUDGET CATEGORY FY 2017-18FY 2017-18FY 2016-17FY 2016-17 ASSOC ENGINEER 2.00 - - 2.00 ENGINEERING TECH II 2.00 - - 2.00 EQUIPMENT OPERATOR 3.00 - - 3.00 MAINTENANCE WORKER II 18.00 - - 18.00 PUB WORKS SPECIALIST 1.00 - - 1.00 PUBLIC WORKS SUPERVISOR 4.00 - - 4.00 SR CIVIL ENGINEER 1.00 - - 1.00 SR FISCAL OFFICE SPECIALIST 1.00 - - 1.00 SR MAINTENANCE WORKER 14.00 - - 14.00 46.00 - - TOTAL AUTHORIZED POSITIONS 46.00 1142017-05-23 Agenda Packet Page 343 SEWER DIF FUNDS 430 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 46,276 1,753 0 100,000 Other Expenses 73,920 5,298 35,000 82,000 Transfers Out 0 7,587,600 125,000 200,000 CIP Project Expenditures 0 0 50,000 0 Non-CIP Project Expenditures 0 1,139,787 0 0 TOTAL EXPENDITURES $120,196 $8,734,438 $210,000 $382,000 REVENUES Use of Money & Property 12,522 63,532 0 0 Development Impact Fees 166,333 239,143 220,000 400,000 Transfers In 0 2,525 0 0 TOTAL REVENUES $178,855 $305,200 $220,000 $400,000 $58,659 ($8,429,238) $10,000 $18,000NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Tel Cyn Sewer Basin Plan DIF 2,982,600 0 043160,000 Poggi Cyn Sewer Basin DIF 1,835 10,000 12,0004320 Salt Creek Sewer Basin DIF 5,750,003 200,000 370,00043360,196 $8,734,438 $210,000 $382,000$120,196TOTAL EXPENDITURES REVENUES Tel Cyn Sewer Basin Plan DIF 0 0 04317,214 Poggi Cyn Sewer Basin DIF 106,408 20,000 20,000432118,608 Salt Creek Sewer Basin DIF 198,792 200,000 380,00043353,033 $305,200 $220,000 $400,000$178,855TOTAL REVENUES $58,659 ($8,429,238) $10,000 $18,000NET FUND ACTIVITY 1152017-05-23 Agenda Packet Page 344 1162017-05-23 Agenda Packet Page 345 FY2018 City of Chula Vista Proposed Budget FLEET FUND 1172017-05-23 Agenda Packet Page 346 1182017-05-23 Agenda Packet Page 347 FY2018 City of Chula Vista Proposed Budget Fleet Fund The Fleet Fund is an internal service fund which like other internal service funds is used to finance and account for goods, special activities, and services performed by one City department for other City departments on a cost reimbursement basis. The Fleet Management fund consists of two functions, Central Garage Operations and Equipment Replacement. Funds are collected on an annual basis through each affected department’s operating budget and deposited in the Fleet Management Fund. The Central Garage Operations function maintains the City’s fleet of vehicles, both through City equipment mechanics and through contracts with local vendors for more specialized maintenance work, such as major transmission repairs. All City vehicles are maintained by the Central Garage, these vehicles include those associated with safety services, streets and sewers, parks and open space, building and housing and the library. Services provided include maintenance and repair of the vehicles, vehicle fuel, and other specialized services not directly related to any single vehicle. REVENUES Revenues in the Fleet Fund come directly from affected departments within the City through vehicle maintenance charges. These charges are based on the actual vehicles that reside within a department and include costs ranging from routine (oil changes, preventive maintenance) to major (transmission repair) as well as fuel costs. Most vehicle replacement costs will be funded by Measure P sales tax revenues. $6.3 million is allocated in the fiscal year 2017‐18 proposed budget for the replacement of public safety and non‐ public safety vehicles within the Measure P Fund. Measure P proposed budget also includes $1.0 million to upgrade the fleet maintenance system, a new fuel delivery and management system, repair of the compressed natural gas (CNG) production facility and electric charging stations throughout city facilities is part of this upgrade. The much needed fleet replacement will directly affect the fleet fund as efficiencies will be gained as a new fleet is acquired. The fleet fund will also purchase a new fleet management software system to improve overall operations and efficiencies in the management of the city’s fleet. Further efficiencies are expected as a result of the purchase of new vehicles as this is projected to result in a greater focus on preventive maintenance activities undertaken by fleet maintenance staff instead of undertaking costlier major repair work on the city’s fleet. For fiscal year 2017‐18, the proposed revenue budget for the Fleet Fund is $3.5 million. This represents a net decrease of $135,911 over the fiscal year 2016‐17 adopted budget. The major revenue changes are as follows: A $220,178 decrease in the Other Revenue category is due to revised fleet maintenance charges for fiscal year 2017‐18. An increase of $85,267 in the Transfers In category from the General Fund to offset personnel costs that will provide dispatching functions. Fleet Fund Revenues Category FY 15‐16 Actual FY 16‐17 Adopted FY 17‐18 Proposed Inc/Dec Use of Money & Property 18,631$ ‐$ ‐$ ‐$ Charges for Services 67,419$ 35,000$ 35,000$ ‐$ Other Revenue 3,727,087$ 3,604,454$ 3,384,276$ (220,178)$ Transfers In 340,035$ ‐$ 85,267$ 85,267$ Total 4,153,172$ 3,639,454$ 3,504,543$ (134,911)$ 1192017-05-23 Agenda Packet Page 348 FY2018 City of Chula Vista Proposed Budget EXPENDITURES The Fleet fund’s expenditures include costs to repair and replace equipment (motor vehicles, mowers, generators, equipment trailers, etc.) throughout the City. As discussed in the revenue summary above, these costs are then allocated back to the affected departments based on several factors such as the number of vehicles/equipment, repair history, and fuel usage. The proposed budget for fiscal year 2017‐18 for Fleet Management is $3.5 million. This amount includes funding for the necessary resources that will be required to sustain operations for service, repairs, and to fuel the City’s fleet in fiscal year 2017‐18. The Personnel Services category is decreasing by a net $80,639 from the fiscal year 2016‐17 budgeted personnel services costs. This change reflects the reduction of 1.00 equipment mechanic position. This reduction was offset by an increase in salaries due to the estimated 2% wage inflation included in the proposed budget and increases in retirement costs. The Supplies and Services category is decreasing by $12,789 from the adopted fiscal year 2016‐17 adopted budget due to reduced fleet maintenance charges. The Utilities expense category is decreasing by $41,482 primarily for gas and electric expenses based on the projected usage for fiscal year 2017‐ 18. Fleet Fund Expenditures Category FY 15‐16 Actual FY 16‐17 Adopted FY 17‐18 Proposed Inc/Dec Personnel Services 1,038,303$ 1,092,719$ 1,012,079$ (80,640)$ Supplies and Services 2,255,570$ 2,373,763$ 2,360,974$ (12,789)$ Other Expenses 329,851$ 400$ 400$ Capital 180,037$ ‐$ ‐$ Utilities 73,785$ 172,572$ 131,090$ (41,482)$ Total 3,877,546$ 3,639,454$ 3,504,543$ (134,911)$ 1202017-05-23 Agenda Packet Page 349 FLEET MANAGEMENT 390 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Services 1,016,749 1,038,303 1,092,719 1,012,079 Supplies and Services 2,107,969 2,255,570 2,373,763 2,360,974 Other Expenses 264,431 329,851 400 400 Capital 129,722 180,037 0 0 Utilities 274,434 73,785 172,572 131,090 TOTAL EXPENDITURES $3,793,305 $3,877,546 $3,639,454 $3,504,543 REVENUES Use of Money & Property 7,418 18,631 0 0 Charges for Services 91,950 67,419 35,000 35,000 Other Revenue 3,712,480 3,727,087 3,604,454 3,384,276 Transfers In 87,572 340,035 0 85,267 TOTAL REVENUES $3,899,420 $4,153,172 $3,639,454 $3,504,543 $106,115 $275,626 $0 $0NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Central Garage 3,367,243 3,639,454 3,504,5433913,399,152 Equipment Replacement 510,303 0 0392394,153 $3,877,546 $3,639,454 $3,504,543$3,793,305TOTAL EXPENDITURES REVENUES Central Garage 3,523,681 3,639,454 3,504,5433913,710,956 Equipment Replacement 629,491 0 0392188,464 $4,153,172 $3,639,454 $3,504,543$3,899,420TOTAL REVENUES $106,115 $275,626 $0 $0NET FUND ACTIVITY 1212017-05-23 Agenda Packet Page 350 FLEET MANAGEMENT FUND 390 STAFFING SUMMARY - 391 ADOPTED MIDYEAR CHANGES PROPOSEDBUDGET CATEGORY FY 2017-18FY 2017-18FY 2016-17FY 2016-17 EQUIPMENT MECHANIC 4.00 - (1.00)3.00 FIRE APPARATUS MECH 2.00 - - 2.00 FISCAL OFFICE SPECIALIST 1.00 - - 1.00 FLEET INVENTORY CONTROL SPEC 1.00 - - 1.00 FLEET MANAGER 1.00 - - 1.00 SR EQUIPMENT MECHANIC 1.00 - - 1.00 10.00 - (1.00)TOTAL AUTHORIZED POSITIONS 9.00 1222017-05-23 Agenda Packet Page 351 CAPITAL EQUIPMENT BUDGET Funding Summary by Purchase Type PROPOSEDDEPT EQUIPMENT DESCRIPTION FY 2017-18 FUND Development Svcs Inspection Vehicles $75,000Development Svcs Fund Econ Devlopment Electric Vehicles $60,000Environmental Services Measure P Fire Vehicles $1,730,680Measure P Measure P Non-Safety Vehicles $2,818,000Measure P Measure P Police Vehicles $1,798,760Measure P Police Patrol Vehicle $65,000Operation Stonegarden Public Works Open Space Vehicle $100,002CFD Maint Districts Sewer Engineering Truck $60,000Sewer Sewer Wastewater vehicle and equipment replacement and related outfitting costs $1,245,200Sewer $7,952,642 TOTAL $7,952,642GRAND TOTAL - ALL EQUIPMENT 1232017-05-23 Agenda Packet Page 352 1242017-05-23 Agenda Packet Page 353 FY2018 City of Chula Vista Proposed Budget CAPITAL PROJECT FUNDS 1252017-05-23 Agenda Packet Page 354 1262017-05-23 Agenda Packet Page 355 FY2018 City of Chula Vista Proposed Budget Capital Project Funds Capital Projects Funds account for resources used for the acquisition and construction of capital facilities by the City, with the exception of those assets financed by proprietary funds. ASSESSMENT DISTRICT IMPROVEMENT FUNDS These funds were established as depositories for monies received from issuance of bonds for various assessment districts. The monies are used to finance the construction of public works improvements in the related districts. Included in this group are funds 501 through 518. DEVELOPMENT IMPACT FEES (DIF) These funds were established as depositories for various development impact fees. The fees are levied against all new development in the City in order to pay for the construction or improvement of public facilities as a result of City growth. Included in this group are the following funds: Fund 542: Telegraph Canyon Drainage Development Impact Fee This fee is levied against new development in specific areas of the City, based upon the drainage facility their project will generate an impact on. The monies collected are used to fund construction of public improvements designed to increase the capacity of the subject facilities, allowing the City to maintain service levels with increased demand. Funds 567‐582: Public Facilities Development Impact Fees The Public Facilities Development Impact Fee (PFDIF) is levied against new development throughout the City to mitigate the impacts of growth on the City’s public services. The monies collected are used in the construction of new, and renovation of existing, public facilities. Fund 587: Otay Ranch Pedestrian Bridge DIF The Otay Ranch Pedestrian Bridge DIF is levied against all new development in Otay Ranch Villages 1, 2, 5, and 6 to fund the construction of pedestrian bridge improvements, as necessitated by growth in these villages. Fund 588: Otay Ranch Village 11 Pedestrian Bridge DIF The Otay Ranch Village 11 Pedestrian Bridge DIF is levied against all new development in Otay Ranch Village 11 to fund the construction of pedestrian bridge improvements, as necessitated by growth in this village. Fund 591: Transportation Development Impact Fee The Transportation Development Impact Fee (TDIF) is levied against all new development in the City east of I‐805 to fund the construction of transportation improvements, as necessitated by growth in the eastern portion of the City. Fund 593: Western Transportation Development Impact Fee The Western Transportation Development Impact Fee (W‐TDIF) is levied against all new development in the City between Interstate 5 and Interstate 805, to fund the construction of transportation improvements, as necessitated by growth in the western portion of the City. Fund 594: Bayfront Development Impact Fee The Bayfront Development Impact Fee (BFDIF) is levied against all new development within the Bayfront Area of the City, to fund construction of transportation improvements, as necessitated by growth in the Bayfront Area of the City. Fund 718: EUC Millenia Pedestrian Bridge DIF The Eastern Urban Center (EUC) Millenia Pedestrian Bridge DIF is levied against all new development in the EUC Millenia project to fund the construction of pedestrian bridge improvements, as necessitated by growth in this project area. OTHER TRANSPORTATION FUNDS Included as a part of this group are the following: Fund 723: Bicycle Facilities This fund is a depository for local Transportation Development Act funds, Article 3.0, received from the County for the purpose of bicycle related programs. 1272017-05-23 Agenda Packet Page 356 FY2018 City of Chula Vista Proposed Budget Fund 735: Transportation Partnership This fund is a depository for the revenues received from the State and Local Transportation Partnership Program. Funds must be spent on street purposes. Fund 736: Other Transportation Programs This fund accounts for other miscellaneous Federal and State transportation grants received by the City. Fund 737: Transportation Equity Act 21 This fund is a depository for revenues received from the federal government under the Transportation Equity Act of the 21st Century. Funds must be spent on street purposes. Fund 739: Traffic Congestion Relief This fund is a depository for revenues allocated to the City under Streets and Highways Code Section 2182 and Revenue and Taxation Code Section 7104. Funds must be expended for maintenance or reconstruction of public streets and roads no later than the end of the fiscal year following the fiscal year in which the allocation is received. Any funds not expended within that period must be returned to the State Controller. Fund 741: Proposition 1B Highway Safety This fund is a depository for revenues received from the State government under Proposition 1B (The Highway Safety, Traffic Reduction, Air Quality, and Port Security Act), as approved by voters in the November 2006 general election. Funds must be spent on street purposes. MISCELLANEOUS CAPITAL IMPROVEMENT PROGRAM FUNDS Included as part of this group are the following: Fund 713: Capital Improvement Fund The Capital Improvement Fund is used to account for general purpose capital projects funded primarily from General Fund. Funds are utilized to account for resources used for the acquisition and construction of capital facilities by the City. Fund 715: Park Acquisition and Development (East) This fund is a depository for fees collected from subdividers for the purpose of providing park and recreational facilities directly benefiting and serving the residents of the regulated subdivision east of the 805. These funds are collected pursuant to Chapter 17.10 of the Chula Vista Municipal Code, in accordance with authority granted by Section 66477 of the California Government Code. Fund 716: Park Acquisition and Development (West) This fund is a depository for fees collected from subdividers for the purpose of providing park and recreational facilities directly benefiting and serving the residents of the regulated subdivision west of the 805. These funds are collected pursuant to Chapter 17.10 of the Chula Vista Municipal Code, in accordance with authority granted by Section 66477 of the California Government Code. Fund 717: Residential Construction Tax This fund is a depository for fees levied for the construction, replacement, or conversion of all dwelling units within the City including hotels and motels, collected pursuant to Chapter 3.32 of the Chula Vista Municipal Code. Fund 725: Industrial Development Authority The Industrial Development Authority (IDA) is a conduit‐issuer of bonds, formed in February 1982 (Ordinance 1970) by the City of Chula Vista City Council. The IDA enables bonds to be issued with a tax‐exempt status, but does not pledge City funds to repay the bond issues. The City is able to issue and sell bonds to provide financial assistance that has a public benefit for the acquisition, construction and installation of facilities for industrial, commercial, business or public utility purposes. 1282017-05-23 Agenda Packet Page 357 ASSESS DIST IMPROVEMENT FUNDS 500 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 0 968 2,500 2,500 Other Expenses 0 300 0 0 Transfers Out 33,376 65,499 0 66,790 CIP Project Expenditures 42,832 193,711 0 0 TOTAL EXPENDITURES $76,208 $260,478 $2,500 $69,290 REVENUES Use of Money & Property 14,745 39,679 0 0 Development Impact Fees 0 3,861 0 0 Other Revenue 18,865 18,786 0 0 Transfers In 0 285,803 0 0 TOTAL REVENUES $33,610 $348,129 $0 $0 ($42,598) $87,651 ($2,500) ($69,290)NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Otay Valley Rd AD 90-2 Improv 0 2,500 2,5005070 AD97-2 193,711 0 050842,832 Otay Vly Rd Fee Recovery Dist 434 0 05110 EL Greens II AD 94-1 Improv 834 0 05120 AD2004-1 Dixon Drive 0 0 31,6005179,597 AD2005-1 Tobias Drive 65,499 0 35,19051823,779 $260,478 $2,500 $69,290$76,208TOTAL EXPENDITURES REVENUES Otay Valley Rd AD 90-2 Improv 1,421 0 0507537 AD97-2 287,815 0 0508(48) Otay Vly Rd Fee Recovery Dist 19,569 0 05115,963 EL Greens II AD 94-1 Improv 19,352 0 05127,366 Twin Oaks Ave AD 96-1 Improv 371 0 0515142 Oxford St AD 97-1 Improv 78 0 051629 AD2004-1 Dixon Drive 9,773 0 05179,598 AD2005-1 Tobias Drive 9,750 0 051810,023 $348,129 $0 $0$33,610TOTAL REVENUES ($42,598) $87,651 ($2,500) ($69,290)NET FUND ACTIVITY 1292017-05-23 Agenda Packet Page 358 TELEGRAPH CANYON DRAINAGE DIF FUND 542 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 0 2,100 0 0 Other Expenses 0 1,180 10,000 10,000 CIP Project Expenditures 1,294,219 770,354 0 0 TOTAL EXPENDITURES $1,294,219 $773,634 $10,000 $10,000 REVENUES Use of Money & Property 39,520 76,056 0 0 TOTAL REVENUES $39,520 $76,056 $0 $0 ($1,254,699) ($697,578) ($10,000) ($10,000)NET FUND ACTIVITY 1302017-05-23 Agenda Packet Page 359 PUBLIC FACILITIES DIF 560 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 1,958 12,238 55,300 56,100 Other Expenses 99,349 106,355 300,000 250,000 Transfers Out 5,774,098 7,711,514 7,719,591 6,537,308 TOTAL EXPENDITURES $5,875,405 $7,830,107 $8,074,891 $6,843,408 REVENUES Use of Money & Property 86,036 275,469 0 0 Development Impact Fees 5,371,592 6,473,891 2,850,000 5,300,000 Other Revenue 0 225 0 0 Transfers In 140,338 2,552 0 0 TOTAL REVENUES $5,597,966 $6,752,137 $2,850,000 $5,300,000 ($277,439) ($1,077,970) ($5,224,891) ($1,543,408)NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDDEPT DESCRIPTIONDEPT # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES General Administration 104,130 355,300 306,100571241,645 Civic Center Expansion 3,095,199 4,221,480 3,175,1925723,200,523 Police Facilities Remodel 1,599,655 1,605,470 1,598,1505731,588,503 Corporation Yard Relocation 845,325 847,641 728,966574844,734 Library for Eastern Territory 9,974 0 05750 Fire Suppression Sys Expansion 2,175,824 1,045,000 1,035,0005760 $7,830,107 $8,074,891 $6,843,408$5,875,405TOTAL EXPENDITURES REVENUES DIF-Adamo Property Acquisition 3,186 0 05671,214 General Administration 481,619 300,000 400,000571365,793 Civic Center Expansion 1,946,938 600,000 760,0005721,571,459 Police Facilities Remodel 1,229,850 400,000 1,360,0005731,026,419 Corporation Yard Relocation 316,331 100,000 260,000574233,254 Library for Eastern Territory 1,328,712 500,000 1,190,0005751,005,819 Fire Suppression Sys Expansion 635,620 500,000 780,000576709,303 Recreation Facilities 809,881 450,000 550,000582684,705 $6,752,137 $2,850,000 $5,300,000$5,597,966TOTAL REVENUES ($277,439) ($1,077,970) ($5,224,891) ($1,543,408)NET FUND ACTIVITY 1312017-05-23 Agenda Packet Page 360 PEDESTRIAN BRIDGE DIF FUND 580 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 0 1,976 0 0 Other Expenses 342 10,111 90,000 110,000 TOTAL EXPENDITURES $342 $12,087 $90,000 $110,000 REVENUES Use of Money & Property 26,860 73,881 0 0 Development Impact Fees 313,945 253,537 110,000 145,000 TOTAL REVENUES $340,805 $327,418 $110,000 $145,000 $340,463 $315,331 $20,000 $35,000NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES DIF-OR Village Pedestrian Ramp 9,833 30,000 30,0005870 OR Vlg11 Pedestrian Bridge DIF 2,254 30,000 30,000588342 EUC Millenia Ped Bridge DIF 0 30,000 50,0007180 $12,087 $90,000 $110,000$342TOTAL EXPENDITURES REVENUES DIF-OR Village Pedestrian Ramp 177,075 100,000 100,000587195,754 OR Vlg11 Pedestrian Bridge DIF 52,267 10,000 5,00058819,906 EUC Millenia Ped Bridge DIF 98,076 0 40,000718125,145 $327,418 $110,000 $145,000$340,805TOTAL REVENUES $340,463 $315,331 $20,000 $35,000NET FUND ACTIVITY 1322017-05-23 Agenda Packet Page 361 TRANSPORTATION DIF FUND 590 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 0 6,599 0 800 Other Expenses 88,077 468,021 400,000 510,000 Transfers Out 6,444 256 0 0 CIP Project Expenditures 730,638 714,715 2,036,102 3,370,333 TOTAL EXPENDITURES $825,159 $1,189,591 $2,436,102 $3,881,133 REVENUES Use of Money & Property 159,300 169,623 0 0 Development Impact Fees 726,812 1,726,223 1,591,600 1,591,600 Transfers In 6,444 2,607,030 1,045,000 1,035,000 TOTAL REVENUES $892,556 $4,502,876 $2,636,600 $2,626,600 $67,397 $3,313,285 $200,498 ($1,254,533)NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Transportation DIF 1,084,624 2,386,102 3,821,133591817,759 Western Transportation DIF Fund 104,967 50,000 60,0005937,400 $1,189,591 $2,436,102 $3,881,133$825,159TOTAL EXPENDITURES REVENUES Transportation DIF 4,408,079 2,545,000 2,535,000591793,719 Western Transportation DIF Fund 94,797 91,600 91,60059398,837 $4,502,876 $2,636,600 $2,626,600$892,556TOTAL REVENUES $67,397 $3,313,285 $200,498 ($1,254,533)NET FUND ACTIVITY 1332017-05-23 Agenda Packet Page 362 OTHER TRANSPORTATION PROGRAMS FUND 730 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 0 21,137 65,000 65,000 Transfers Out 29,814 0 0 0 CIP Project Expenditures 2,897,253 3,279,735 6,637,647 8,002,203 TOTAL EXPENDITURES $2,927,067 $3,300,872 $6,702,647 $8,067,203 REVENUES Use of Money & Property 503 1,269 0 0 Revenue from Other Agencies 2,926,211 3,300,874 6,702,647 8,067,203 Other Revenue 858 0 0 0 TOTAL REVENUES $2,927,572 $3,302,143 $6,702,647 $8,067,203 $505 $1,271 $0 $0NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Bicycle Facilities 21,137 65,000 65,0007230 Other Transportation Program 3,279,735 6,637,647 8,002,2037362,927,067 $3,300,872 $6,702,647 $8,067,203$2,927,067TOTAL EXPENDITURES REVENUES Bicycle Facilities 21,137 65,000 65,0007230 Transportation Partnership 492 0 0735188 Other Transportation Program 3,279,737 6,637,647 8,002,2037362,927,069 Prop 1B Hwy Safety 777 0 0741315 $3,302,143 $6,702,647 $8,067,203$2,927,572TOTAL REVENUES $505 $1,271 $0 $0NET FUND ACTIVITY 1342017-05-23 Agenda Packet Page 363 MISCELLANEOUS CIP FUNDS 700 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 0 14,772 50,000 50,000 Other Expenses 0 8,297 50,000 60,000 Transfers Out 642,015 1,329,160 1,116,415 718,278 CIP Project Expenditures 37,972 531,778 0 0 TOTAL EXPENDITURES $679,987 $1,884,007 $1,216,415 $828,278 REVENUES Other Local Taxes 366,650 185,625 325,505 325,505 Use of Money & Property 265,347 479,343 0 0 Development Impact Fees 1,072,237 3,203,613 700,000 700,000 Other Revenue 150,000 445,508 87,609 0 Transfers In 302,779 1,133,837 790,910 460,396 TOTAL REVENUES $2,157,013 $5,447,926 $1,904,024 $1,485,901 $1,477,026 $3,563,919 $687,609 $657,623NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Capital Improvement Projects 507,025 0 071322,190 PAD Fund - Eastern 47,863 75,000 85,00071515,782 PAD Fund - Western 805,000 475,000 75,0007160 Resid. Construction/Conversion 524,119 666,415 668,278717642,015 $1,884,007 $1,216,415 $828,278$679,987TOTAL EXPENDITURES REVENUES Capital Improvement Projects 448,861 87,609 0713150,002 PAD Fund - Eastern 4,381,959 1,050,000 650,0007151,167,306 PAD Fund - Western 96,162 100,000 100,000716169,263 Resid. Construction/Conversion 520,944 666,415 735,901717670,442 $5,447,926 $1,904,024 $1,485,901$2,157,013TOTAL REVENUES $1,477,026 $3,563,919 $687,609 $657,623NET FUND ACTIVITY 1352017-05-23 Agenda Packet Page 364 1362017-05-23 Agenda Packet Page 365 FY2018 City of Chula Vista Proposed Budget DEBT SERVICE FUNDS 1372017-05-23 Agenda Packet Page 366 1382017-05-23 Agenda Packet Page 367 FY2018 City of Chula Vista Proposed Budget Debt Service Funds The debt service requirement for the City and Public Financing Authority is $12.4 million for fiscal year 2017‐ 18. Successor Agency to the Redevelopment Agency debt is reported in the “Debt Administration” section of the budget. The $12.4 million are the required payments for the debt per the amortization schedules however, the amounts budgeted or actually paid are usually less due to funds available with the trustee as a result of interest earnings or excess cash in the various debt service funds that reduce the required cash outlay budgeted for the annual payment of the debt. Debt service payments are made from various City and Funds in accordance with the legal documents governing each borrowing. Present debt is in the form of Certificates of Participation, Long Term Notes and Lease‐Purchase Obligations. Debt has been issued by the City to finance a wide variety of projects, including the construction of the new Public Works Center and the new Police Facility, parking facilities, refurbishment of the Chula Vista Shopping Mall, property acquisitions, building remodeling, and equipment and software acquisition. Annual debt service costs are funded by the General Fund and Public Facilities Development Impact Fee Fund. DEBT SERVICE – CITY FUND Debt Service for City Fund accounts for the activities of the City’s bonds (not issued by the CV Public Financing Authority), notes and capital leases. Debt service expenditures for the City Fund are approximately $3.4 million offset by revenues of $3.4 million. To follow is a brief description of the City Fund ‐ debt service funds. Fund 442: CDBG Section 108 Loan In June of 2008, the City received a loan of $9.5 million from the U.S. Department of Housing and Urban Development (HUD), under the Section 108 program. These funds will be repaid with a portion of the City’s annual CDBG allocation, over the next 20 years. The funds will be used for the ‘Castle Park Infrastructure Project’. The Section 108 loan is an ‘advance’ of future CDBG entitlement funds, and, as such, is repaid with a portion of the City’s annual entitlement. Fund 451: Long Term Advances DSF – City This fund was established to account for inter‐fund loans. Fund 452: Capital Leases This fund was established to account for the lease/purchase of the Fire Department’s apparatuses, the Police Department’s Mobile Data Computers, and Energy Conservation equipment. In December 2012, the City entered into a lease purchase agreement with Bank of America to purchase certain energy conservation equipment. The agreement would bridge the financial gap between the Municipal Streetlight Retrofit Project capital costs and the available rebates for energy conservation equipment. In September 2013, the City entered into a lease purchase agreement with Osh Kosh Capital for the acquisition of a Pierce Arrow XT Triple Combination Pumper Fire Engine. In March 2015, the City entered into a lease purchase agreement with Marlin Leasing Corporation to purchase mobile data computers and associated software. In November 2015, the City entered into a lease purchase agreement with PNC Equipment Finance, LLC for the acquisition of two Pierce Arrow XT Triple Combination Pumper Fire Engines. Fund 453: Energy Loan Repayment This fund accumulates payment of principal and interest on a loan obtained through the California Energy Commission to fund various energy conservation capital projects. On July 23, 2013, the City Council authorized a 16 year lease purchase agreement with Banc of America to fund various solar energy projects for City facilities. The original amount of the loan was $2,121,500 and will be repaid through future energy savings. 1392017-05-23 Agenda Packet Page 368 FY2018 City of Chula Vista Proposed Budget DEBT SERVICE – CHULA VISTA PUBLIC FINANCING AUTHORITY The Chula Vista Public Financing Authority (PFA) formed in April 1995 to provide for financing of acquisition, construction and improvement of public capital improvements. The PFA has been used to issue Certificates of Participation on behalf of the City. Debt service expenditures for the PFA are approximately $6.8 million with offsetting revenues of $6.8 million. To follow is a brief description of the Chula Vista PFA ‐ debt service funds. Fund 472: 2004 Certificates of Participation – Civic Center Project – Phase I In August 2004, the Public Financing Authority issued the 2004 COP in the amount of $37,240,000 to finance the construction and equipping of certain improvements to the Civic Center complex and to provide funds for infrastructure improvements in western Chula Vista. The source of repayment of the certificates is the lease payments to be made by the General Fund and PFDIF to the Public Financing Authority. The 2004 COPs were refunded in September 2015. Fund 473: 2006 Certificates of Participation – Civic Center Project – Phase II In March 2006, the Public Financing Authority issued the 2006 COP in the amount of $20,325,000 to finance the construction and equipping of additional improvements to the Civic Center complex and for the renovation of the City’s Nature Center. The 2006 COPs were refunded in July 2016. Fund 474: 2010 COP Refinance – Corporation Yard and Civic Center Phase III) In February 2010, the Public Financing Authority issued the 2010 COP in the amount of $29,355,000 to refinance the outstanding $15,640,000 principal balance of the 2000 Certificate of Participation and to finance certain capital improvement projects. The source of repayment of the certificates is the lease payments to be made by the General Fund and PFDIF to the Public Financing Authority. The 2010 COPs were refunded in July 2016. Fund 475: 2014 Refunding Certificates of Participation In March 2014, the Public Financing Authority issued the 2014 COP in the amount of $45,920,000 to refinance the outstanding principal balance of the 2002 Certificates of Participation. The source of repayment of the certificates is the lease payments to be made by the General Fund and PFDIF to the Public Financing Authority. The term of the certificates is through calendar year 2032. Fund 476: 2015 Refunding Certificates of Participation In September 2015, the Public Financing Authority issued the 2015 COP in the amount of $34,330,000 to refinance the outstanding principal balance of the 2004 Certificates of Participation and to refinance part of the outstanding principal balance of the 2006 Certificates of Participation. The source of repayment of the certificates is the lease payments to be made by General Fund and PFDIF to the Public Financing Authority. The term of the certificates is through calendar year 2034. Fund 477: 2016 Refunding Certificates of Participation In July 2016, the Public Financing Authority issued the 2016 COP in the amount of $8,600,000 to refinance the outstanding principal balance of the 2006 Certificates of Participation. The source of repayment of the certificates is the lease payments to be made by General Fund and PFDIF to the Public Financing Authority. The term of the certificates is through calendar year 2036. DEBT SERVICE – CHULA VISTA MUNICIPAL FINANCING AUTHORITY The Chula Vista Municipal Financing Authority (PFA) formed in June 2013 to provide for financing or refinancing for the acquisition, construction and improvement of public capital improvements. The MFA has been used to issue Lease Revenue Refunding Bonds on behalf of the City. Debt service expenditures for the MFA are approximately $2.1 million with offsetting revenues of $2.1 million. To follow is a brief description of the Chula Vista MFA ‐ debt service fund. 1402017-05-23 Agenda Packet Page 369 FY2018 City of Chula Vista Proposed Budget Fund 478: 2016 Lease Revenue Refunding Bonds In July 2016, the Municipal Financing Authority issued the 2016 LRRB in the amount of $25,885,000 to refinance the outstanding principal balance of the 2010 Certificates of Participation. The source of repayment of the certificates is the lease payments to be made by General Fund and PFDIF to the Municipal Financing Authority. The term of the certificates is through calendar year 2033. 1412017-05-23 Agenda Packet Page 370 1422017-05-23 Agenda Packet Page 371 DEBT SERVICE - CITY FUNDS 440 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Other Expenses 2,254,507 1,669,044 2,043,400 1,995,140 Transfers Out 40,482 4,115,118 2,964,162 1,385,000 TOTAL EXPENDITURES $2,294,989 $5,784,162 $5,007,562 $3,380,140 REVENUES Use of Money & Property 684 9,381 0 0 Other Revenue 153,684 197,016 173,001 168,000 Transfers In 1,733,873 5,415,614 4,797,769 3,212,140 TOTAL REVENUES $1,888,241 $5,622,011 $4,970,770 $3,380,140 ($406,748) ($162,151) ($36,792)$0NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES CDBG Section 108 Loan 758,243 759,900 762,200442756,175 Long-term Advances DSF - City 3,778,863 2,964,162 1,385,000451336,255 KS Fire Equipment Capital Lease 435,207 641,500 594,540452392,640 CES Loan Repayment 811,849 642,000 638,400453809,919 $5,784,162 $5,007,562 $3,380,140$2,294,989TOTAL EXPENDITURES REVENUES CDBG Section 108 Loan 758,243 759,900 762,200442756,175 SD Co Regional Comm Systems 3 0 04492 Long-term Advances DSF - City 3,678,423 2,964,162 1,385,0004510 KS Fire Equipment Capital Lease 351,363 604,708 594,540452353,854 CES Loan Repayment 833,979 642,000 638,400453778,210 $5,622,011 $4,970,770 $3,380,140$1,888,241TOTAL REVENUES ($406,748) ($162,151) ($36,792)$0NET FUND ACTIVITY 1432017-05-23 Agenda Packet Page 372 DEBT SVC-CV PUBLIC FINANCING AUTH FUND 470 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 17,284 11,725 20,005 21,000 Other Expenses 9,763,838 46,971,130 9,417,130 8,950,700 Transfers Out 0 40,051,517 0 0 TOTAL EXPENDITURES $9,781,122 $87,034,372 $9,437,135 $8,971,700 REVENUES Use of Money & Property 188,921 685,141 0 0 Other Revenue 0 36,592,493 0 0 Transfers In 9,547,649 49,358,973 9,437,135 8,971,700 TOTAL REVENUES $9,736,570 $86,636,607 $9,437,135 $8,971,700 ($44,552) ($397,765)$0 $0NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES 2004 COP Civ Ctr Proj Phase I 33,291,613 0 04722,397,395 2006 COP Civ Ctr Proj Phase 2 8,545,361 394,105 04731,276,240 2010 Refunding COP 2,490,319 2,500,000 04742,495,738 2014 Refunding COP 3,611,381 3,620,000 3,603,5004753,611,749 2015 Refunding COP 39,095,698 2,923,030 2,931,2004760 2016 COP 0 0 288,0004770 2016 LRRB COP Refinance 0 0 2,149,0004780 $87,034,372 $9,437,135 $8,971,700$9,781,122TOTAL EXPENDITURES REVENUES 2003 Refunding Cert of Part (8)0 0471(4) 2004 COP Civ Ctr Proj Phase I 30,828,149 0 04722,391,228 2006 COP Civ Ctr Proj Phase 2 8,394,974 394,105 04731,271,448 2010 Refunding COP 2,487,869 2,500,000 04742,491,636 2014 Refunding COP 3,607,949 3,620,000 3,603,5004753,582,263 2015 Refunding COP 41,317,674 2,923,030 2,931,200476(1) 2016 COP 0 0 288,0004770 2016 LRRB COP Refinance 0 0 2,149,0004780 $86,636,607 $9,437,135 $8,971,700$9,736,570TOTAL REVENUES ($44,552) ($397,765)$0 $0NET FUND ACTIVITY 1442017-05-23 Agenda Packet Page 373 FY2018 City of Chula Vista Proposed Budget OTHER FUNDS 1452017-05-23 Agenda Packet Page 374 1462017-05-23 Agenda Packet Page 375 FY2018 City of Chula Vista Proposed Budget Other Funds The funds included in this section include miscellaneous Special Revenue and Internal Service funds. Special Revenue Funds are used to account for proceeds derived from specific revenue sources, which are legally restricted to expenditures for special purposes. Internal Service Funds are used to finance and account for goods, special activities, and services performed by one City department for other City departments on a cost reimbursement basis. Internal Service Funds account for the activities of worker’s compensation, insurance, and technology replacement. To follow is a brief description of special revenue funds. TRANSPORTATION FUNDS Included in this group are the following funds: Fund 221: Gas Tax This fund accounts for the receipt and expenditure of all monies received from the State under Street and Highway Code Sections 2106, 2107, 2107.5. The allocations must be spent for street maintenance or construction and a limited amount for engineering. Historically, these monies were deemed highly restrictive insofar as expenditure, but with adoption of AB1502 effective January 1, 1978 most of the money can be used for any street purpose. Fund 225: Traffic Signal Fee This fund accounts for the receipt and expenditure of fees collected from private developers for financing and / or installation of new traffic signals, as required by City of Chula Vista Council Policy 478‐01. Fund 227: Transportation Sales Tax This fund was established to account for the receipt and disbursement of all transportation sales tax (TransNet) revenues for the City. In November 1987, San Diego County voters first approved the Transportation Program (TransNet). In November of 2004, voters approved a 40‐year extension of the program, which funds transportation improvements throughout the region via a half‐ cent local sales tax. The City’s allocation of regional funds is based upon population and the number of local street and road miles maintained by the City. PARKING FUNDS Included as part of this group are the following funds: Fund 241:Parking Meter Parking Meter Fund revenues are generated through two sources: coin deposits from parking meters located in the downtown area, and parking citation payments for expired meter violations. These funds pay for the coin collection and maintenance of the meters, the parking enforcement staff that monitors the downtown area, and general upkeep and signage of the downtown parking lots. Fund 243: Town Center I Parking This fund is used to account for revenues from an in‐lieu parking fee. This in‐lieu parking fee applies to any developer of a new commercial building or addition to an existing commercial building within the Downtown Parking District. Use of monies in this fund is restricted to the purchase or development of parking sites. PUBLIC SAFETY FUNDS Included in this group are the following funds: Fund 245: Traffic Safety This fund is a depository for all monies derived from vehicle code fines, excluding parking violations. The fines are collected through the County court system and remitted to the City monthly. These monies may be expended only for traffic control devices and equipment and maintenance thereof or for the maintenance, improvement or construction of public streets. Fund 251: Supplemental Law Enforcement Services This fund accounts for the Supplemental Law Enforcement grant funds awarded to the Police Department; these funds can be used to supplement general fund appropriations for Police related personnel, overtime, and equipment expenditures. 1472017-05-23 Agenda Packet Page 376 FY2018 City of Chula Vista Proposed Budget Fund 252: Police Department Grants This fund includes the California Border Alliance Group (CBAG) and miscellaneous police grants. CBAG is funded with federal funds. While CBAG employees are technically City of Chula Vista employees they do not work in the City of Chula Vista nor do they provide direct services for the City of Chula Vista; the City serves only as a fiscal agent for CBAG. Fund 253: Inmate Welfare Fund This fund is a depository for monies collected from pay phones commissions and operation of a commissary, in accordance with the Sheriff’s Penal Code section 4025. Monies in this fund shall be expended for the benefit, education, and welfare of the inmates. Fund 254: Local Law Enforcement Block Grant Funds This fund accounts for federal Justice Assistance Grant funds awarded to the Police Department; these funds can be used to supplement general fund appropriations for Police related personnel, overtime, and equipment expenditures. Fund 256: Asset Seizure This fund is a depository for assets seized under Federal statutes through the process of “equitable sharing” of drug money and real property. By law these funds may only be used for law enforcement purposes and are intended to supplement, not supplant, existing funds. LIBRARY/CULTURAL ARTS FUNDS Included in this group are the following funds: Fund 261: California Library Service Act The California Library Services Act (CLSA) helps public libraries provide coordinated reference services and provides reimbursement for interlibrary loans of materials and loans to nonresident borrowers through the Transaction Based Reimbursement program, also known as the Direct Loan program. The Chula Vista Public Library participates in the Universal Borrowing provision of CLSA that reimburses the City for any over‐the‐ counter loan service to the residents of all other California public library jurisdictions (Direct Loan). The Interlibrary Loan program reimburses the City for handling costs when books are lent to other California libraries. Fund 262: Public Library Foundation Fund The Public Library Foundation Act (PLF) is a funding formula under which the State contributes funding for basic local library services, under specified conditions, to assure the availability to every resident of the state an adequate level of public library service regardless of the taxable wealth of the local jurisdiction providing the service. The legislation provides that to every library jurisdiction which allocates to its public library at least as much local funding as it had the previous year, the state will award a dollar amount equal to the proportional share of the total amount allocated for the Public Library Foundation program based on the population of the library's service area as certified by the State Librarian for that fiscal year. The annual funding is dependent upon appropriations made by the legislature and the Governor. Fund 267: McCandliss Awards The Gayle McCandliss Fund was established in 1991 shortly after she passed away. Consistent with her wishes, it was established as a perpetual fund to recognize and provide monetary support or recognition to individuals or groups who make substantial contribution to the arts in the City of Chula Vista. SUNDRY GRANT FUNDS Included as part of this group are the following funds: Fund 268: State Recreation Grants This fund was established to account for the receipt and disbursement of all State Recreation Grants received by the City. Fund 269: Other Grant Fund The Other Grants Fund was established to account for all grants other than Federal and State grants such as: San Diego Neighborhood Reinvestment Program and Be the Change grants. Fund 272: Federal Grants Fund This fund was established to account for the receipt and disbursement of all Federal Grants received by the City. 1482017-05-23 Agenda Packet Page 377 FY2018 City of Chula Vista Proposed Budget Fund 273: State Grants Fund This fund was established to account for the receipt and disbursement of all State Grants received by the City (excluding Recreation related grants). Fund 274: ARRA Fund This fund was established to account for the receipt and disbursement of federal grant funds received by the City, authorized by the American Recovery and Reinvestment Act of 2009. Fund 275: State Parkway Grant Fund This fund was established to meet the State Grant requirement that specific funds be deposited into an interest bearing account. ENVIRONMENTAL SERVICES AND CONSERVATION FUNDS Included as part of this group are the following funds: Fund 281: Waste Management and Recycling Revenue for the Waste Management fund is generated by a variety of grants which are used to implement, operate and educate the public on waste diversion, recycling, environmental actions and impacts. Current grant programs include litter reduction and bottle and can recycling programs; a regional used motor oil and oil filter recycling program; regional household hazardous waste program, regional universal waste program, and a regional needles and sharps disposal program. Fund 282: Environmental Services The Environmental Services fund is a depository for revenue that is generated primarily by a 5% surcharge (AB 939 fees) applied to the refuse rates for residential and commercial customers. The surcharge is authorized by the State to recover the costs of developing and implementing source reduction, recycling, and composting programs that are implemented to meet the State mandate to divert 50% of all waste generated annually in the City from landfills. The fund also includes two annual flat fees paid by the franchise hauler under the franchise agreement to cover litter container costs and to support the programs public education and enforcement service costs. Fund 285: Energy Conservation Fund Revenue for the Energy Conservation fund is generated by grants and inter‐agency agreements for specific energy conservation projects. The energy conservation fund reflects the budget for the SDG&E energy conservation grant. This grant funds energy conservation programs for local residents, businesses, and City operations that reduce the amount of natural gas and electricity consumed. STORM DRAIN FUND Storm Drain Revenue (Fund 301) – In accordance with Chapter 14.16 of the Chula Vista Municipal Code all proceeds of the storm drain fee are deposited into the Storm Drain Revenue Fund. Monies in this fund may only be used for storm drain purposes. The monthly storm drain service charge is included on the sewer bill. COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS These funds are depositories of grant entitlement monies received from the Department of Housing and Urban Development including funds 311, 314, 321, 325, and 333. The purpose of these monies is for community development projects; eligible activities include those that: Benefit low and moderate income people. Eliminate slums and blight. Alleviate conditions posing a serious health and/or safety hazard. OPEN SPACE DISTRICT FUNDS These funds are a depository for all monies received for all flat rate property tax assessments levied against benefiting property owners for all maintenance of open space areas. Included in this group are funds 342 through 389. The total assessment amount for each Open Space District is calculated each year based upon the cost of providing services within the district. This assessment rate is limited to the prior year’s amount, increased by the lesser of two local indexes. In recent years the indexed increases were not effectively keeping pace with the actual costs of providing these services to the property owners. In fiscal year 2007‐08 staff went through the Proposition 218 process on seven districts/zones, in order to bring revenues in line with actual maintenance costs. Only one of the seven districts was approved for an increase in assessment. 1492017-05-23 Agenda Packet Page 378 FY2018 City of Chula Vista Proposed Budget As a result a concentrated effort has been made to reduce expenditures to within available resources. MISCELLANEOUS SPECIAL REVENUE FUNDS Included in this grouping are the following funds: Fund 223: Telephone Users Tax (TUT) Common Fund This fund is used to account for funds in accordance with a 2014 settlement agreement that resolved a class action lawsuit challenging the City’s collection of Telephone Users’ Taxes from wireless customers. Fund 270: Mobile Home Rent Review Program Fund This fund is a depository for monies collected for the Mobile Home Administrative Fee. This fee was established in July 2011 to ensure a consistent funding source for administration and implementation of Chula Vista Municipal Code 9.50 – Mobile Home Park Space Rent Review. Fund 316: Public Educational & Government Fee Fund This fund accounts for funds received through State Video Franchise Fees to support Public, Education, and Governmental (PEG) access channel facilities. These funds are restricted. In fiscal year 2013‐14 they will be used to replace presentation and broadcasting equipment for Council Chambers and the Police Department Community Room. INTERNAL SERVICE FUNDS Included as part of this group are the following funds: Fund 232: Flexible Spending Account This fund is used to account for employee health, medical and dependent care benefits. In fiscal year 2011‐12 this fund was transitioned to a trust and agency type fund. Fund 234: Advanced Life Support (ALS) Fund This fund accounts for the receipt of pass‐through revenue from ambulance services to fund First Responder Advanced Life Support program. Fund 235: Legislative Counsel Fund This fund accounts for the expenditures and revenues used to fund outside legal counsel services as necessary to implement Proposition C. Fund 341: Public Liability Trust Fund This fund is a depository for contributions made from the General Fund to provide an appropriate reserve level to pay for uninsured and deductibles for public liability losses. The City is self‐insured for amounts up to $250,000 per claim. Fund 393: Technology Replacement Fund The Technology Replacement Fund is an internal service function that provides for the replacement of computers and related technology equipment. Funds from departments’ operating budgets are transferred to the Technology Replacement Fund for future replacement of equipment included in the program. Due to economic reasons, the program has not been funded for several years. Computer replacement has been included in various funds based on available resources. Fund 398: Workers Compensation This fund is a depository for contributions made from all funds, which have personnel allocated to them, to pay for annual costs related to workers’ compensation liabilities including the provision of an appropriate reserve to pay uninsured claims costs. The City is self‐insured for amounts up to $1.0 million per claim. The amount of the reserve and the required annual transfer is determined by the Director of Finance, based on experience and consultation with the Risk Manager. In fiscal year 2010‐11 the Workers Compensation Fund was moved from Fund 231 to Fund 398, this change is necessary to change the fund type from General Fund to internal service. OTHER ENTERPRISE FUNDS Included as part of this group are the following funds: Fund 406:Chula Vista Municipal Golf Course This fund is used to account for revenues and expenditures related to the operation of the Chula Vista Municipal Golf Course. Fund 409: Chula Vista Elite Athlete Training Center This fund accounts for the revenues and expenditures related to the management of the Chula Vista Elite Athlete Training Center. 1502017-05-23 Agenda Packet Page 379 TRANSPORTATION FUNDS 220 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 6,300 7,228 0 0 Other Expenses 51,375 6,963 15,000 25,000 Transfers Out 4,259,428 4,259,428 4,259,428 4,259,428 CIP Project Expenditures 11,799,298 11,717,961 9,867,141 8,756,778 Non-CIP Project Expenditures 0 391,919 0 0 TOTAL EXPENDITURES $16,116,401 $16,383,499 $14,141,569 $13,041,206 REVENUES Other Local Taxes 11,489,633 2,535,464 8,239,131 6,087,000 Use of Money & Property 59,901 131,430 0 0 Revenue from Other Agencies 6,842,508 6,622,809 5,306,551 5,537,543 Charges for Services 279,738 184,401 200,000 200,000 Other Revenue 512,327 114,182 0 0 Transfers In 29,814 0 0 0 TOTAL REVENUES $19,213,921 $9,588,286 $13,745,682 $11,824,543 $3,097,520 ($6,795,213) ($395,887) ($1,216,663)NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Gas Tax 8,713,800 5,559,428 5,877,4282217,356,677 Traffic Signal 332,840 510,010 363,166225160,826 Transportation Sales Tax 7,336,859 8,072,131 6,800,6122278,598,898 $16,383,499 $14,141,569 $13,041,206$16,116,401TOTAL EXPENDITURES REVENUES Gas Tax 5,707,250 5,258,582 5,537,5432216,519,979 Traffic Signal 218,770 200,000 200,000225444,879 Transportation Sales Tax 3,662,266 8,287,100 6,087,00022712,249,063 $9,588,286 $13,745,682 $11,824,543$19,213,921TOTAL REVENUES $3,097,520 ($6,795,213) ($395,887) ($1,216,663)NET FUND ACTIVITY 1512017-05-23 Agenda Packet Page 380 PARKING FUND 240 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 228,679 245,040 260,300 345,700 Other Expenses 128,027 132,934 168,500 163,500 Utilities 10,643 9,949 12,448 13,070 CIP Project Expenditures 30,409 55 0 0 TOTAL EXPENDITURES $397,758 $387,978 $441,248 $522,270 REVENUES Licenses and Permits 40,598 26,777 35,000 25,000 Fines, Forfeitures, Penalties 173,565 173,317 200,000 200,000 Use of Money & Property 382,777 381,381 350,000 365,000 Other Revenue 6 0 0 0 TOTAL REVENUES $596,946 $581,475 $585,000 $590,000 $199,188 $193,497 $143,752 $67,730NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Parking Meter 387,978 441,248 522,270241397,758 $387,978 $441,248 $522,270$397,758TOTAL EXPENDITURES REVENUES Parking Meter 580,610 585,000 590,000241596,615 Town Centre I-Parking District 865 0 0243331 $581,475 $585,000 $590,000$596,946TOTAL REVENUES $199,188 $193,497 $143,752 $67,730NET FUND ACTIVITY 1522017-05-23 Agenda Packet Page 381 PUBLIC SAFETY FUND 250 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Services 5,070,316 5,250,837 5,967,163 6,311,005 Supplies and Services 1,019,437 986,416 806,052 713,990 Other Expenses 4,452 8,206 192,626 243,940 Capital 218,066 265,258 589,719 165,000 Transfers Out 537,344 425,618 435,785 420,653 TOTAL EXPENDITURES $6,849,615 $6,936,335 $7,991,345 $7,854,588 REVENUES Fines, Forfeitures, Penalties 441,515 508,082 437,640 437,640 Use of Money & Property 18,837 49,811 20,000 20,000 Revenue from Other Agencies 6,969,247 5,866,451 6,535,938 6,690,179 Charges for Services 134,120 123,841 134,710 140,296 Other Revenue 61,704 54,607 30,000 40,000 Transfers In 51,226 77,139 86,021 150,958 TOTAL REVENUES $7,676,649 $6,679,931 $7,244,309 $7,479,073 $827,034 ($256,404) ($747,036) ($375,515)NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Traffic Safety 422,153 437,640 437,640245420,098 Suppl Law Enforcement Services 488,391 696,424 589,227251449,284 Police Department Grants 5,328,682 6,086,052 6,292,0042525,459,267 Inmate Welfare Fund 30,722 60,000 82,35025328,534 Local Law Enf Block Grant 91,365 94,812 98,41525489,245 Asset Seizure 575,022 616,417 354,952256403,187 $6,936,335 $7,991,345 $7,854,588$6,849,615TOTAL EXPENDITURES REVENUES Traffic Safety 509,757 437,640 437,640245441,749 Suppl Law Enforcement Services 471,256 401,014 401,014251876,735 Police Department Grants 5,206,760 6,020,843 6,292,0042525,457,772 Inmate Welfare Fund 65,236 30,000 40,00025348,599 Local Law Enf Block Grant 92,718 94,812 98,41525489,746 Asset Seizure 334,204 260,000 210,000256762,048 $6,679,931 $7,244,309 $7,479,073$7,676,649TOTAL REVENUES $827,034 ($256,404) ($747,036) ($375,515)NET FUND ACTIVITY 1532017-05-23 Agenda Packet Page 382 PUBLIC SAFETY FUND 250 STAFFING SUMMARY - 252 ADOPTED MIDYEAR CHANGES PROPOSEDBUDGET CATEGORY FY 2017-18FY 2017-18FY 2016-17FY 2016-17 FA ADMIN ANALYST II 1.00 - (1.00)- FA ANALYST 2.00 1.00 - 3.00 FA DEPUTY DIRECTOR SDLECC 1.00 1.00 - 2.00 FA DEPUTY EXECUTIVE DIRECTOR 1.00 - - 1.00 FA DIRECTOR OF SD LECC 1.00 - - 1.00 FA EXECUTIVE DIRECTOR 1.00 - (1.00)- FA FINANCIAL MANAGER 1.00 - - 1.00 FA GEOSPATIAL INTEL ANALYST 1.00 - - 1.00 FA GRAPHIC DESIGNER/WBMSTR 1.00 - - 1.00 FA INFO SECURITY PROGRAM MGR 1.00 - - 1.00 FA INTELLIGENCE ANALYST - 1.00 - 1.00 FA IVDC-LECC EXEC DIRECTOR 1.00 - - 1.00 FA LECC IT MANAGER 1.00 - - 1.00 FA NTWRK ADMINISTRATOR II 4.00 - - 4.00 FA PROG ASST SUPERVISOR - 1.00 - 1.00 FA PROGRAM ASSISTANT 2.00 (1.00)- 1.00 FA PROGRAM MANAGER 1.00 - (1.00)- FA PUB PRVT PART EXER PRG MGR 1.00 - - 1.00 FA RCFL NETWORK ENGINEER 2.00 - - 2.00 FA SR FINANCIAL ANALYST 1.00 - - 1.00 FA SR INTELLIGENCE ANALYST 7.00 2.00 - 9.00 FA SR PROGRAM ASSISTANT - 1.00 - 1.00 FA SR SECRETARY 1.00 - - 1.00 FA SUPV INTELLIGENCE ANALYST 2.00 1.00 - 3.00 PEACE OFFICER 3.00 - - 3.00 POLICE COMM RELATIONS SPEC 1.00 - - 1.00 POLICE SERGEANT 1.00 - - 1.00 39.00 7.00 (3.00)TOTAL AUTHORIZED POSITIONS 43.00 1542017-05-23 Agenda Packet Page 383 LIBRARY/CULTURAL ARTS FUNDS 260 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 66,000 2,862 400 400 Other Expenses 0 500 1,200 1,200 TOTAL EXPENDITURES $66,000 $3,362 $1,600 $1,600 REVENUES Use of Money & Property 392 627 0 0 TOTAL REVENUES $392 $627 $0 $0 ($65,608) ($2,735) ($1,600) ($1,600)NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES California Library Service Act 2,862 0 026166,000 McCandliss Cultural Arts 500 1,600 1,6002670 $3,362 $1,600 $1,600$66,000TOTAL EXPENDITURES REVENUES California Library Service Act 411 0 0261302 Public Library Act 1 0 02621 McCandliss Cultural Arts 215 0 026789 $627 $0 $0$392TOTAL REVENUES ($65,608) ($2,735) ($1,600) ($1,600)NET FUND ACTIVITY 1552017-05-23 Agenda Packet Page 384 SUNDRY GRANTS & MISC FUND 270 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Services 372,081 446,305 442,716 345,730 Supplies and Services 788,631 805,404 1,101,135 186,344 Other Expenses 280,922 67,679 155,333 139,338 Capital 1,427,514 650,850 125,876 0 Transfers Out 610,000 10,035 0 0 CIP Project Expenditures 2,865,477 164,163 0 350,000 Non-CIP Project Expenditures 70,043 411,371 0 0 TOTAL EXPENDITURES $6,414,668 $2,555,807 $1,825,060 $1,021,412 REVENUES Use of Money & Property 21,685 30,455 0 0 Revenue from Other Agencies 4,171,189 1,476,296 1,106,821 821,753 Charges for Services 84,180 85,790 65,000 65,000 Other Revenue 46,817 45,919 22,333 22,333 Transfers In 51,615 61,620 112,326 112,326 TOTAL REVENUES $4,375,486 $1,700,080 $1,306,480 $1,021,412 ($2,039,182) ($855,727) ($518,580)$0NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES TUT Common Fund 991,125 473,826 02232,411,335 Other Grant Fund 69,162 100,000 100,0002693,486 Mobile Home Rent Review Progra 33,021 91,000 65,00027052,294 Federal Grants Fund 1,048,225 1,059,147 484,0792721,411,747 State Grants Fund 414,274 78,754 350,0002732,535,806 ARRA Fund 0 22,333 22,3332740 $2,555,807 $1,825,060 $1,021,412$6,414,668TOTAL EXPENDITURES REVENUES TUT Common Fund 27,314 0 022335,155 Other Grant Fund 54,290 100,000 100,00026926,858 Mobile Home Rent Review Progra 88,931 65,000 65,00027085,084 Federal Grants Fund 970,687 1,059,147 484,0792721,419,184 State Grants Fund 514,880 60,000 350,0002732,776,762 ARRA Fund 43,978 22,333 22,33327432,443 $1,700,080 $1,306,480 $1,021,412$4,375,486TOTAL REVENUES ($2,039,182) ($855,727) ($518,580)$0NET FUND ACTIVITY 1562017-05-23 Agenda Packet Page 385 SUNDRY GRANTS & MISC FUND 270 STAFFING SUMMARY - 272 ADOPTED MIDYEAR CHANGES PROPOSEDBUDGET CATEGORY FY 2017-18FY 2017-18FY 2016-17FY 2016-17 EMERGENCY SVCS COORDINATOR 1.00 - - 1.00 GIS SPECIALIST 1.00 - - 1.00 2.00 - - TOTAL AUTHORIZED POSITIONS 2.00 1572017-05-23 Agenda Packet Page 386 PUBLIC EDUCATIONAL & GOVT. FEE FUND 316 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 246,095 157,842 300,000 300,000 Other Expenses 0 265 0 0 Capital 64,040 204,160 300,000 300,000 TOTAL EXPENDITURES $310,135 $362,267 $600,000 $600,000 REVENUES Other Local Taxes 679,354 664,470 600,000 600,000 Use of Money & Property 4,141 17,109 0 0 TOTAL REVENUES $683,495 $681,579 $600,000 $600,000 $373,360 $319,312 $0 $0NET FUND ACTIVITY 1582017-05-23 Agenda Packet Page 387 CONSERVATION FUND 280 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Services 796,900 804,062 964,236 1,048,681 Supplies and Services 1,388,562 1,696,789 2,037,385 2,076,885 Other Expenses 439,989 442,008 854,170 810,080 Capital 4,003 348 67,193 67,193 Utilities 57 4,494 5,100 10,355 Transfers Out 107,585 107,585 107,585 107,585 CIP Project Expenditures 956 0 0 0 TOTAL EXPENDITURES $2,738,052 $3,055,286 $4,035,669 $4,120,779 REVENUES Use of Money & Property 9,672 21,191 0 0 Revenue from Other Agencies 1,457,141 1,688,811 2,119,276 2,113,296 Charges for Services 1,088,446 1,161,539 1,262,279 1,262,279 Other Revenue 141,585 314,710 139,726 139,726 TOTAL REVENUES $2,696,844 $3,186,251 $3,521,281 $3,515,301 ($41,208) $130,965 ($514,388) ($605,478)NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Waste Management & Recycling 790,223 555,691 477,701281659,352 Environmental Services Fund 1,461,847 1,916,393 2,007,4832821,280,625 Energy Conservation 803,216 1,563,585 1,635,595285798,075 $3,055,286 $4,035,669 $4,120,779$2,738,052TOTAL EXPENDITURES REVENUES Waste Management & Recycling 886,217 555,691 477,701281662,596 Environmental Services Fund 1,496,818 1,402,005 1,402,0052821,237,492 Energy Conservation 803,216 1,563,585 1,635,595285796,756 $3,186,251 $3,521,281 $3,515,301$2,696,844TOTAL REVENUES ($41,208) $130,965 ($514,388) ($605,478)NET FUND ACTIVITY 1592017-05-23 Agenda Packet Page 388 CONSERVATION FUND 280 STAFFING SUMMARY - 282 ADOPTED MIDYEAR CHANGES PROPOSEDBUDGET CATEGORY FY 2017-18FY 2017-18FY 2016-17FY 2016-17 RECYCLING SPECIALIST I 3.00 - - 3.00 RECYCLING SPECIALIST II 3.00 - - 3.00 SR RECYCLING SPECIALIST 1.00 - - 1.00 7.00 - - TOTAL AUTHORIZED POSITIONS 7.00 1602017-05-23 Agenda Packet Page 389 STORM DRAIN REVENUE FUND 301 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 324,124 238,069 348,100 348,100 Utilities 674 0 800 840 Transfers Out 0 697,599 210,000 0 TOTAL EXPENDITURES $324,798 $935,668 $558,900 $348,940 REVENUES Licenses and Permits 0 0 23,750 23,750 Fines, Forfeitures, Penalties 24,431 11,800 5,000 5,000 Use of Money & Property (833) 3,482 0 0 Charges for Services 624,232 605,207 555,500 555,500 Other Revenue 290 1,393 0 0 TOTAL REVENUES $648,120 $621,882 $584,250 $584,250 $323,322 ($313,786) $25,350 $235,310NET FUND ACTIVITY 1612017-05-23 Agenda Packet Page 390 COMM DEV BLOCK GRANTS FUND 320 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 11,642 961 23,527 5,100 Other Expenses 544,093 1,143,306 571,813 280,500 Capital 3,672 17,653 70,419 60,470 Utilities 0 0 0 8,530 Transfers Out 756,175 758,243 759,900 762,200 CIP Project Expenditures 0 35,600 483,640 0 Non-CIP Project Expenditures 893,511 684,914 1,052,756 50,100 TOTAL EXPENDITURES $2,209,093 $2,640,677 $2,962,055 $1,166,900 REVENUES Use of Money & Property 66,683 91,708 79,000 79,000 Revenue from Other Agencies 2,109,028 2,382,370 2,853,055 976,300 Other Revenue 103,714 270,558 0 0 Transfers In 9,597 0 0 31,600 TOTAL REVENUES $2,289,022 $2,744,636 $2,932,055 $1,086,900 $79,929 $103,959 ($30,000) ($80,000)NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES CDBG Housing Program 34,025 328,574 51,100311114,988 Emergency Shelter Grant Prog 162,948 159,265 0314188,146 Home Program 1,010,415 509,215 289,500321285,313 Comm Dev Block Grant 1,433,289 1,965,001 826,3003331,620,646 $2,640,677 $2,962,055 $1,166,900$2,209,093TOTAL EXPENDITURES REVENUES CDBG Housing Program 4,175 328,574 51,100311151,614 Emergency Shelter Grant Prog 162,948 159,265 0314188,146 Home Program 1,129,713 509,215 209,500321316,804 CDBG Program - Income Projects 1,093 0 0325412 Comm Dev Block Grant 1,446,707 1,935,001 826,3003331,632,046 $2,744,636 $2,932,055 $1,086,900$2,289,022TOTAL REVENUES $79,929 $103,959 ($30,000) ($80,000)NET FUND ACTIVITY 1622017-05-23 Agenda Packet Page 391 OPEN SPACE DISTRICT FUNDS 350 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 6,326,177 6,486,597 7,337,964 7,101,254 Other Expenses 1,894,778 1,816,940 1,753,766 2,184,759 Capital 0 38,464 0 100,002 Utilities 2,319,236 2,198,014 2,908,652 2,982,435 CIP Project Expenditures 7,303 16,313 0 0 TOTAL EXPENDITURES $10,547,494 $10,556,328 $12,000,382 $12,368,450 REVENUES Use of Money & Property 91,222 227,663 0 0 Other Revenue 8,682,473 11,450,924 11,994,382 14,513,404 TOTAL REVENUES $8,773,695 $11,678,587 $11,994,382 $14,513,404 ($1,773,799) $1,122,259 ($6,000) $2,144,954NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES CFD 11-M RHR McMillin 122,176 130,275 152,49634289,974 CFD 12-M Vlg7 310,541 466,868 365,547343339,345 CFD 13-M Vlg2 145,752 209,297 232,968344141,531 CFD 12M - OR Village 7 344,795 468,444 497,287345380,648 CFD 14M - A - EUC Millenia 2,508 148,402 158,1243460 CFD 14M - B - EUC Millenia Park 0 4,328 61,5033470 CFD 18M Village 3 Otay Ranch 0 0 5,0003480 CFD 19M Freeway Commercial 2 0 0 59,6163490 Bay Blvd Landscaping Dist 3,598 10,575 12,5003522,928 Eastlake Maintenance Dist #1 348,733 331,451 332,054353311,192 Open Space District #1 97,028 86,481 85,44135493,273 Open Space District #2 18,504 14,439 14,91735515,499 Open Space District #3 60,957 51,501 52,60235651,339 Open Space District #4 102,828 89,881 91,86735786,265 Open Space District #5 51,721 50,412 52,04535848,357 Open Space District #6 31,189 32,617 34,17835930,227 Open Space District #7 4,669 12,977 14,7363615,400 Open Space District #8 87,263 77,329 74,05836276,626 Open Space District #9 95,802 79,437 73,45936379,634 Open Space District #10 95,675 88,054 84,56336474,369 Open Space District #11 172,128 193,157 172,143365162,518 1632017-05-23 Agenda Packet Page 392 OPEN SPACE DISTRICT FUNDS 350 Open Space District #14 384,591 354,236 361,460367422,949 Open Space District #15 38,203 27,154 22,90536837,736 Open Space District #17 10,084 18,906 8,8483698,433 Open Space District #18 149,790 168,492 177,836371141,408 Open Space District #20 1,444,371 1,453,756 1,477,1003721,367,797 Open Space District #23 37,477 49,966 49,96637335,449 Open Space District #24 42,602 39,916 31,15037442,817 Open Space District #26 14,633 12,762 11,61337514,526 Open Space District #31 130,023 160,614 178,339376177,032 CFD 07M-Eastlk II Woods, Vista 585,709 653,562 685,373378496,316 CFD 08M-Vlg 6 McM & Oty Ranc 771,748 956,488 1,019,508379822,345 CFD 09M OR Vlg II 738,156 961,157 1,005,296380894,010 CFD 99-2 Otay Ranch Vlg 1 We 777,204 752,336 792,483382705,504 Otay Ranch Acquisition Dist 495,083 654,500 602,500386487,221 CFD 98-3 Sunbow 2 811,689 872,069 915,889387851,331 Comm Facility 97-1 (Otay Rnch) 2,026,756 2,304,452 2,401,0803882,052,841 Otay Ranch Village 1,2,6,7,12 2,342 14,091 0389654 $10,556,328 $12,000,382 $12,368,450$10,547,494TOTAL EXPENDITURES REVENUES CFD 11-M RHR McMillin 99,279 130,275 169,68134233,615 CFD 12-M Vlg7 202,245 466,868 365,54734373,009 CFD 13-M Vlg2 197,185 209,297 340,796344198,882 CFD 12M - OR Village 7 459,001 468,444 503,247345374,818 CFD 14M - A - EUC Millenia 285,162 148,402 224,3343460 CFD 14M - B - EUC Millenia Park 0 4,328 67,8233470 CFD 18M Village 3 Otay Ranch 0 0 657,2773480 CFD 19M Freeway Commercial 2 0 0 130,5463490 Town Centre Landscaping Dist I 419 0 0351161 Bay Blvd Landscaping Dist 698 10,575 12,500352285 Eastlake Maintenance Dist #1 303,037 331,451 351,035353292,059 Open Space District #1 84,586 86,481 85,44135481,315 Open Space District #2 14,530 14,439 15,06335514,227 Open Space District #3 50,352 51,501 52,60235649,475 Open Space District #4 89,499 89,881 91,86735790,771 Open Space District #5 52,892 50,412 52,04535849,412 Open Space District #6 33,555 32,617 34,17835932,585 Open Space District #7 3,796 12,977 14,73636110,593 Open Space District #8 71,325 77,329 74,05836271,001 Open Space District #9 72,088 79,437 73,45936369,813 Open Space District #10 82,773 88,054 84,56336480,753 Open Space District #11 169,488 193,157 172,143365164,848 Open Space District #13 5 0 03663 Open Space District #14 348,891 354,236 361,460367344,410 Open Space District #15 22,104 27,154 22,90536821,811 Open Space District #17 8,658 18,906 8,8483698,426 1642017-05-23 Agenda Packet Page 393 OPEN SPACE DISTRICT FUNDS 350 Open Space District #18 174,721 168,492 177,836371172,810 Open Space District #20 1,398,633 1,453,756 1,479,9143721,304,760 Open Space District #23 52,097 49,966 49,96637354,831 Open Space District #24 30,567 39,916 31,15037430,115 Open Space District #26 11,217 12,762 11,61337511,025 Open Space District #31 175,316 160,614 189,419376186,239 CFD 07M-Eastlk II Woods, Vista 284,689 653,562 686,876378147,780 CFD 08M-Vlg 6 McM & Oty Ranc 1,115,153 956,488 1,317,28637938,574 CFD 09M OR Vlg II 961,696 961,157 1,122,910380942,755 CFD 99-2 Otay Ranch Vlg 1 We 773,549 752,336 887,430382681,447 Town Ctr Business Imprv Distr (2,289)0 03833,599 Otay Ranch Acquisition Dist 670,716 648,500 743,651386436,863 CFD 98-3 Sunbow 2 848,662 872,069 998,072387712,856 Comm Facility 97-1 (Otay Rnch) 2,529,517 2,304,452 2,851,1273881,933,852 Otay Ranch Village 1,2,6,7,12 2,775 14,091 038953,917 $11,678,587 $11,994,382 $14,513,404$8,773,695TOTAL REVENUES ($1,773,799) $1,122,259 ($6,000) $2,144,954NET FUND ACTIVITY 1652017-05-23 Agenda Packet Page 394 ADVANCED LIFE SUPPORT FUND 234 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Services 497,499 280,948 208,634 212,824 Supplies and Services 300,466 128,239 178,317 178,177 Capital 160,702 197,893 193,469 193,469 Transfers Out 649,923 828,194 972,453 972,453 TOTAL EXPENDITURES $1,608,590 $1,435,274 $1,552,873 $1,556,923 REVENUES Revenue from Other Agencies 1,534,430 1,476,315 1,552,873 1,556,923 TOTAL REVENUES $1,534,430 $1,476,315 $1,552,873 $1,556,923 ($74,160) $41,041 $0 $0NET FUND ACTIVITY 1662017-05-23 Agenda Packet Page 395 ADVANCED LIFE SUPPORT FUND 234 STAFFING SUMMARY - 234 ADOPTED MIDYEAR CHANGES PROPOSEDBUDGET CATEGORY FY 2017-18FY 2017-18FY 2016-17FY 2016-17 EMS NURSE COORDINATOR 1.00 - - 1.00 1.00 - - TOTAL AUTHORIZED POSITIONS 1.00 1672017-05-23 Agenda Packet Page 396 LEGISLATIVE COUNSEL FUND 235 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 0 0 5,000 5,000 Transfers Out 0 33,950 41,050 0 TOTAL EXPENDITURES $0 $33,950 $46,050 $5,000 $0 ($33,950) ($46,050) ($5,000)NET FUND ACTIVITY 1682017-05-23 Agenda Packet Page 397 PUBLIC LIABILITY TRUST FUND 341 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 300,850 363,714 400,000 384,908 Other Expenses 463,479 814,982 540,000 819,170 TOTAL EXPENDITURES $764,329 $1,178,696 $940,000 $1,204,078 REVENUES Transfers In 442,646 500,681 520,000 1,284,078 TOTAL REVENUES $442,646 $500,681 $520,000 $1,284,078 ($321,683) ($678,015) ($420,000) $80,000NET FUND ACTIVITY 1692017-05-23 Agenda Packet Page 398 TECHNOLOGY REPLACEMENT FUND 393 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 460,526 12,125 127,349 0 TOTAL EXPENDITURES $460,526 $12,125 $127,349 $0 ($460,526) ($12,125) ($127,349)$0NET FUND ACTIVITY 1702017-05-23 Agenda Packet Page 399 WORKERS COMPENSATION FUND 398 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 613,727 651,884 810,197 826,359 Other Expenses 2,784,023 4,758,944 2,669,000 3,702,764 TOTAL EXPENDITURES $3,397,750 $5,410,828 $3,479,197 $4,529,123 REVENUES Other Revenue 2,631,734 4,437,087 3,519,714 5,029,123 Transfers In 950,000 503,346 0 0 TOTAL REVENUES $3,581,734 $4,940,433 $3,519,714 $5,029,123 $183,984 ($470,395) $40,517 $500,000NET FUND ACTIVITY 1712017-05-23 Agenda Packet Page 400 TRANSIT FUNDS 400 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Personnel Services 180,524 0 0 0 Supplies and Services 3,600,665 49,578 0 0 Other Expenses 912,703 0 0 0 Capital 50,838 0 0 0 Utilities 96,189 0 0 0 Transfers Out 34,750 0 0 0 CIP Project Expenditures 24,184 15,486 0 0 TOTAL EXPENDITURES $4,899,853 $65,064 $0 $0 REVENUES Use of Money & Property 25,613 26,054 0 0 Revenue from Other Agencies 2,531,799 0 0 0 Charges for Services 1,503,263 0 0 0 Other Revenue 338,107 16,429 0 0 TOTAL REVENUES $4,398,782 $42,483 $0 $0 ($501,071) ($22,581)$0 $0NET FUND ACTIVITY ACTUALACTUAL ADOPTED ADOPTEDFUND DESCRIPTIONFUND # FUND DETAIL FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Bayfront Trolley Station TDA 0 0 040159,864 Transit CVT 0 0 04024,536,607 Transit Capital Projects 65,064 0 0403303,382 $65,064 $0 $0$4,899,853TOTAL EXPENDITURES REVENUES Bayfront Trolley Station TDA 1,382 0 040159,795 Transit CVT 33,949 0 04024,035,644 Transit Capital Projects 7,152 0 0403303,343 $42,483 $0 $0$4,398,782TOTAL REVENUES ($501,071) ($22,581)$0 $0NET FUND ACTIVITY 1722017-05-23 Agenda Packet Page 401 CHULA VISTA MUNICIPAL GOLF COURSE FUND 406 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Transfers Out 0 0 0 132,580 TOTAL EXPENDITURES $0 $0 $0 $132,580 REVENUES Use of Money & Property 0 0 0 132,580 TOTAL REVENUES $0 $0 $0 $132,580 $0 $0 $0 $0NET FUND ACTIVITY 1732017-05-23 Agenda Packet Page 402 CV ELITE ATHLETE TRAINING CENTER FUND 409 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 0 0 0 5,280 Utilities 0 0 0 339,263 TOTAL EXPENDITURES $0 $0 $0 $344,543 REVENUES Revenue from Other Agencies 0 0 0 339,263 Transfers In 0 0 0 20,000 TOTAL REVENUES $0 $0 $0 $359,263 $0 $0 $0 $14,720NET FUND ACTIVITY 1742017-05-23 Agenda Packet Page 403 Funding Summary by Project Type NON-CAPITAL IMPROVEMENT PROJECT BUDGET PROPOSED COMMUNITY DEVELOPMENT BLOCK GRANT FY 2017-18 Norman Park Senior Center Services $30,000 Therapeutic Program $20,100 $50,100COMMUNITY DEVELOPMENT BLOCK GRANT TOTAL PROPOSED GENERAL FUND FY 2017-18 Eucalyptus Park Imp American Legion $18,700 $18,700GENERAL FUND TOTAL $68,800GRAND TOTAL - ALL PROJECTS 1752017-05-23 Agenda Packet Page 404 1762017-05-23 Agenda Packet Page 405 FY2018 City of Chula Vista Proposed Budget CAPITAL IMPROVEMENT PROGRAM Capital Improvement Program Summary CIP Revenue Summary CIP Expenditure Summary Capital Improvement Projects Summary Five‐Year CIP Project Summary Schedule 1772017-05-23 Agenda Packet Page 406 1782017-05-23 Agenda Packet Page 407 FY2018 City of Chula Vista Proposed Budget Capital Improvement Program Summary The following is an overview of the Capital Improvement Budget Program. The goal of the Capital Improvement Program (CIP) is to provide for the sustainable preservation of City‐owned assets at the lowest cost and to leverage financial strategies to address infrastructure needs within a prioritized framework, which includes an assessment of the asset’s condition, capacity to meet service demands, probability of failure, maintenance and preservation strategies, and funding availability. The CIP is a living document used to identify current and future requirements and the basis for determining annual capital budget expenditures. The CIP document can be found in its entirety on the City’s website. To follow is a summary of the document. Capital Improvement Projects are defined as capital investments with a value of $50,000 or more and a minimum useful life of 5 years at a fixed location. Equipment, operating and maintenance costs are budgeted in the City’s operating budget. New maintenance costs are included in the CIP budget and appropriated in future operating budget cycles. The CIP document provides the capital project budget detail and reporting by asset management category, funding, and location. This format better aids the decision‐making process as it allows the City Council to review projects recommended in each asset management system, gain an understanding of the condition of the asset in relation to the overall system and the basis for the recommendation, as well as the availability of funding sources. The proposed projects’ detail sheets within each asset management system provides a description, location, project intent, type of project, link to the strategic goals, and funding requirements over the life of the project. CIP PROCESS The Engineering and Capital Project Department annually prepares a Capital Improvement Budget for the City Council’s approval. The CIP budget includes an estimated five‐year Capital Improvement Program. The City is faced with the challenge of managing a range of aging infrastructure assets that are critical to maintaining an aging City and serving new development. Making sound decisions about asset maintenance and replacement requires information about the asset's probability of failure and capacity to meet the requirements of the system. On a continuous basis, project proposals are added to the City’s capital improvement budget and project management database (CIPACE) following recommendations from guiding documents (see list below) adopted by the City Council and condition assessments performed by Engineering & Capital Projects and Public Works Operations staff. This year’s CIP process includes the process of ranking projects and setting funding priorities. Funding recommendations 1792017-05-23 Agenda Packet Page 408 FY2018 City of Chula Vista Proposed Budget are based on the evaluation of the proposed asset‘s probability of failure, capacity, and level of service requirements including efficiency improvements gained. Another tool used in ranking and formulating the CIP recommendations are Guiding Documents approved by the City Council. The City utilizes “guiding documents” to ensure proposed CIP projects are consistent with established program priorities. The following is a partial list of guiding documents, which have included public input from multiple stakeholders in the community. Additionally, proposed CIP projects are reviewed for consistency with the City’s General Plan and specific plan and City policies. General Plan Regional Transportation Program Bikeway Master Plan Street Saver Condition Index Database Drainage Master Plan Wastewater Master Plan Fire Master Plan Asset Management Plan Parks Master Plan Pedestrian Master Plan/Safe Routes to School Redevelopment Implementation Plan Southwest United in Action Survey Results Third Avenue Streetscape Master Plan Environmental Mitigation Program Western TDIF Program TDIF Program Redevelopment Implementation Plan Traffic Monitoring Program Growth Management Oversight Committee Annual Report Other Specific Plans (e.g. Urban Core Specific Plan, Palomar, Bayfront and Main Street Specific Plans BUDGET DEVELOPMENT Although a component of the City Manager’s overall budget, the CIP budget is developed separately by Engineering and Capital Projects staff on an annual basis. The CIP budget process runs parallel to the development process for the City’s operating budget, and they are subsequently presented together for City Council approval. On March 7, 2017, a public hearing was held for City Council to consider and adopt the TransNet Local Street Improvement Program of projects for fiscal years 2016‐ 17 through 2020‐21. Then, on May 4, 2017, Engineering and Capital Projects/Public Works Operations held their annual Infrastructure Workshop. Public comment is a vital component of the CIP process. The public had the opportunity to comment on the proposed CIP. The initial proposed capital improvement project detail sheets are posted annually in April of each year on the Public Works website for public comment and review. http://www.chulavistaca.gov/departments/public‐ works/projects Additionally, the Engineering and Capital Projects Department publishes an annual proposed CIP budget. The document will be made available at the City Clerk’s Office, the Civic Center Library, Otay Ranch Mall Library, and the South Chula Vista Library. The proposed program reaffirms the City’s commitment to identify resources to move us toward long‐term sustainability of our City’s current assets as well as new improvements that accommodate growth. The City will continue to collaborate with regional agencies, such as the Port, SANDAG, and Caltrans, to ensure that the needs of our City residents are met, taking into account the unique characteristics of our City and recognizing our role as the County’s second largest city and a leader in the South Bay. 1802017-05-23 Agenda Packet Page 409 FY2018 City of Chula Vista Proposed Budget CIP Revenue Summary The Capital Improvement Program is supported by a number of funding sources. City staff continuously explores opportunities to diversify revenue and leverage funding for infrastructure improvements. The following chart and table summarizes the funding sources for the FY 2017‐2018 CIP budget. Fiscal Year 2017‐18 CIP by Funding Source Fund Source Percentage Amount Active Transportation Grant 0.34% $250,000 Gas Tax 2.19% $1,618,000 Highway Bridge Program 6.77% $5,000,000 HSIP 3.66% $2,707,250 Measure P 70.48% $52,062,653 Recycled Rubber Grant 0.47% $350,000 SAFETEAS-LU Grant 0.06% $44,953 Sewer Facility Replacement 1.76% $1,300,000 Sewer Service Revenue 0.04% $30,000 Traffic Signal 0.46% $338,166 TransNet 9.21% $6,800,612 TDIF 4.56% $3,370,333 Total 100.00% $73,871,967 0.34% 2.19% 6.77% 3.66% 70.48% 0.47% 0.06% 1.76% 0.04% 0.46% 9.21% 4.56% Active Transportation Grant Gas Tax Highway Bridge Program HSIP Measure P Recycled Rubber Grant SAFETEAS‐LU Grant Sewer Facility Replacement Sewer Service Revenue Traffic Signal TransNet TDIF 1812017-05-23 Agenda Packet Page 410 FY2018 City of Chula Vista Proposed Budget The Capital Improvement Budget is primarily supported by Measure P funds, Transportation Sales Tax (TransNet), Gas Tax, and revenues from the Highway Bridge Program (HBP) for Willow Street and Heritage Bridges. Chula Vista voters approved Measure P – a temporary, 10‐year, half‐cent sales tax to fund high priority infrastructure needs. TransNet is the largest stable source of revenues for Capital Improvement projects. Along with TransNet, Gas Tax funds continue to provide a steady source of revenue for street related projects. The HBP is a safety program that provides federal‐aid to local agencies to replace and rehabilitate deficient locally owned public highway bridges. Other major revenues in this year’s budget include Transportation Development Impact Fees for street related projects and Sewer Facility Replacement funds for ongoing sewer rehabilitation projects. Competitive grant revenue sources remain steady with grant revenue growth opportunities in the imminent future. Transportation grants include the Active Transportation Program and Federal Highway Safety Improvement Program. Revenue decreases include the end of funds available from Proposition 1B and a reduction in Community Block Grant funding traditionally used for ADA pedestrian improvements. The following is a brief description of key funding sources which support the FY 2017‐18 Capital Improvement Budget: DEVELOPMENT IMPACT FEES Traffic Signal Fee The Traffic Signal Fee is a trip‐based development impact fee that is charged with the issuance of building permits for new construction. The fee can be utilized for the installation and upgrade of traffic signals throughout the City. A total of $338,166 is programmed in FY 2017‐18 for traffic signal modifications and pedestrian improvements. Transportation Development Impact Fee (TDIF) The City’s TDIF Program was established on January 12, 1988, by Ordinance 2251 for the collection of development impact fees to be used to construct transportation facilities to accommodate increased traffic generated by new development within the City's eastern territories. More than $3.4 million is programmed as part of the FY 2017‐18 CIP. Western Transportation Development Impact Fee (WTDIF) The City’s WTDIF Program was established on March 18, 2008, by Ordinances 3106 through 3110. This program is similar to the Eastern Transportation Development Impact Fee (TDIF) Program, which was established on January 12, 1988. In 2014, it was determined that the Bayfront, previously included in the WTDIF, be removed and a new DIF area covering only the Bayfront be established. No WTDIF is programmed as part of the FY 2017‐18 CIP. Telegraph Canyon Development Impact Fee The City’s Telegraph Canyon DIF was established on August 7, 1990, by Ordinance 2384 for collection of development impact fees to be used to construct drainage and channel improvements for the Telegraph Canyon Basin. No Telegraph Canyon DIF funds ae programmed in the FY 2017‐18 CIP. Salt Creek Sewer DIF The City’s Salt Creek Sewer DIF was established in 1994 by Ordinance 2617 to finance the sewer improvements within the Salt Creek Sewer Basin. No Salt Creek Sewer Basin funds are programmed as part of the FY 2017‐18 CIP. GRANTS Active Transportation Grant Program On September 26, 2013, the Governor signed legislation creating the Active Transportation Program (Senate Bill 99 Chapter 359 and Assembly Bill 101, Chapter 354), a new statewide grant program to encourage increased use of active modes of transportation, such as biking and walking. The Active Transportation Program (ATP) consolidated the Bicycle Transportation Account BTA along with Safe Routes to School Program, the Environmental Enhancement and Mitigation Program and two other programs into one program. The California Transportation Commission (CTC) adopted the ATP guidelines on March 26, 2015. A total of $250,000 is programmed as part of the FY 2017‐18 CIP. Bicycle Transportation Account The Bicycle Transportation Account (BTA) is an annual program providing state funds for city and county projects that improve safety and convenience for bicycle commuters. Projects must be designed and developed to achieve the functional commuting needs and physical safety of all bicyclists. No BTA Program Call 1822017-05-23 Agenda Packet Page 411 FY2018 City of Chula Vista Proposed Budget for Projects has been announced for FY 2017‐18. Therefore, no BTA funds are programmed in the FY 2017‐18 CIP. Community Development Block Grant Funds Each year, the City receives approximately $1.7 million in Community Development Block Grant (CDBG) funds. Of this amount approximately $1.3 million is available for community development activities, which include capital improvement projects. In 2006, the City of Chula Vista received a CDBG Section 108 loan in the amount of $9.5 million for the completion of the Castle Park Infrastructure Projects. The debt service payment is paid back from the City’s annual allotment of CDBG funds (approximately $750,000 annually). This reduces the amount of CDBG funds available for other capital projects to approximately $0.3‐0.5 million annually for a total of 12 years. The City has excluded the budgeting of these funds pending final award notification, therefore no CDBG funds are programmed in the FY 2017‐18 CIP Program. Highway Bridge Program Included in the FY 2017‐18 Capital Improvement Program are two major bridge replacement projects: STL‐261, “Willow Street Bridge Widening,” at the Sweetwater River and STM‐386, “Heritage Road Bridge Replacement,” at the Otay River. Both projects will be designed and constructed primarily using Federal Highway Bridge Program (HBP) funds totaling approximately $43.3 million, leveraged with a relatively small local TDIF contribution of about $6.7 million. The environmental documentation and engineering design for STM‐364 was partially funded by a $2.5 million SAFETEA‐LU grant. The Highway Bridge Program (HBP) provides funding to enable states to improve the condition of their highway bridges through replacement, rehabilitation, and systematic preventive maintenance of deficient bridges. The existing bridge at Willow Street was constructed in 1940 and, through a series of studies, was determined that it was not practical to rehabilitate the bridge and funding for full replacement was subsequently approved by the Federal Highway Administration (FHWA) and Caltrans, which administers the HBP Grant Program in California. The existing bridge at Heritage Road was built as an interim facility in 1993 when heavy flood waters destroyed the river crossing; this interim bridge was recently approved by FHWA and Caltrans for replacement because it is inadequate for peak traffic volumes, does not accommodate pedestrians, and is unable to convey the 50‐year storm without being overtopped. A total of $5 million in HBP funds is programmed as part of the FY 2017‐18 CIP. Highway Safety Improvement Program The Highway Safety Improvement Program (HSIP) was established to attain a significant reduction in traffic fatalities and serious injuries on all public roads through the implementation of infrastructure‐related highway safety improvements. Approximately $2.7 million in HSIP funding has been programmed as part of the FY 2017‐18 CIP. Neighborhood Reinvestment Program The Neighborhood Reinvestment Program (NEP) provides grant funds to County departments, public agencies, and to non‐profit community organizations for one‐time community, social, environmental, educational, cultural or recreational needs. No NEP funds are programmed in the FY 2017‐18 CIP. Safe Routes to School The State Safe Routes to School (SR2s) program goal is to reduce injuries and fatalities to schoolchildren and to encourage increased walking and bicycling among students. Competitive grants are available to local government agencies for construction of facilities that enhance safety for pedestrians and bicyclists, primarily students in grades K‐12 who walk or bicycle to school. No Safe Routes to School funds are programmed in the FY 2017‐18 CIP. The Active Transportation Program (ATP) consolidated the Safe Routes to School Program along with a number of other programs into one program. Smart Growth Incentive Grant The TransNet Smart Growth Initiative Program (SGIP) funds transportation related infrastructure improvements and planning efforts that support smart growth development. The SGIP will award two percent of the annual TransNet revenues for the next 40 years to local governments through a competitive grant program to support projects that will help better coordinate transportation and land use in the San Diego region. It is anticipated that SANDAG will release a Notice of Funding Availability during FY 2016‐17 for the SGIP. Staff will be submitting for an Active SGIP grant for the Third Avenue Streetscape Improvement Project 1832017-05-23 Agenda Packet Page 412 FY2018 City of Chula Vista Proposed Budget Phase III from 200 feet north of “F” Street to “E” Street. No SGIP funds are programmed as part of the FY 2017‐ 18 CIP. Rubberized Pavement (TRP) Grant The Department of Resources Recycling and Recovery (CalRecycle) offers funding opportunities authorized by legislation to assist public and private entities in the safe and effective management of the waste stream. CalRecycle’s tire grant programs are designed to encourage activities that promote reducing the number of waste tires going to landfills for disposal and eliminating the stockpile of waste tires. Revenue for the grants is generated from a tire fee on each new tire sold in California. The Rubberized Pavement (TRP) Grant Program provides assistance to local governments to fund rubberized asphalt (RAC) projects including hot mix and chip seal. RAC is a proven road paving material that has been used in California since the 1970,s it is made by blending ground tire rubber with asphalt binder which is then mixed with conventional aggregate materials. Calrecycle approved the City’s grant request for $350,000 in TRP Grant FY 2017‐18 funds. MISCELLANEOUS FUNDS General Fund The General Fund is the City’s main operating fund used to pay for City services. No General Fund monies are programmed as part of the FY 2017‐18 CIP. Capital improvement projects will be funded by the Measure P commitment. Residential Construction Tax (RCT) The Residential Construction Tax (RCT) was established by the City Council in October 1971 to provide a more equitable distribution of the burden of financing parks, open spaces, public facilities, and other capital improvements, the need for which is created by the increasing population of the City. The RCT is applicable to all new residential units and paid by the person constructing the units. RCT funds are used to pay for debt service obligations resulting from the issuance of Certificates of Participation (COP’s) for western Chula Vista failing CMP repairs. No RCT funds are programmed as part of the FY 2017‐18 CIP. VOTER APPROVED FUNDS Proposition 1B Highway Funds In 2006‐07, the voters of the State of California approved Proposition 1B. This proposition included funds to be provided to cities within the State for local roadway improvements. The initial allocation of $3.6 million was spent on pavement rehabilitation projects in FY 2010‐11. The second allocation of $3.3 million was frozen by the State of California due to the State’s financial crisis and released in late April 2010 in monthly installments. As a result, the State provided an additional year of expenditure for Prop 1B funds received in 2009‐10. The City spent the second allocation of Prop 1B funds prior to June 2014. Gas Tax Several years ago the voters approved Proposition 42, which provided funding for cities to improve streets from the sales tax on fuel. The funds can only be utilized for street improvements and the City has utilized these funds to augment its annual pavement rehabilitation efforts. In FY 2017‐18 the proposed CIP budget is $1.6 million for minor pavement rehabilitation including street overlays and some street reconstruction based on the City’s Pavement Management System. Transportation Sales Tax Transportation Sales Tax (TransNet) funds are derived from sales tax revenues levied in San Diego County that are collected by the State specifically for use on transportation related projects in San Diego County. The regional metropolitan planning agency, San Diego Association of Governments (SANDAG), programs these funds to municipalities within San Diego County. Revenues vary from year‐to‐year, depending on the amount of sales tax available to the region and the number and costs of projects for which municipalities, local transit, and Caltrans request funding. The revenue approved for municipalities is based on the specific cost estimates that are required to be submitted as part of the annual request for funding. The TransNet Extension Ordinance states that at least 70 percent of the funds allocated to local agencies for local road projects should be used to fund Congestion Relief (CR) projects. CR projects include the construction of new or expanded facilities, major rehabilitation and reconstruction of roadways, traffic signalization, transportation infrastructure to support smart growth, capital improvements for transit facilities, and operating support for local shuttle and circulator transit routes. No more than 30 percent of TransNet funds allocated 1842017-05-23 Agenda Packet Page 413 FY2018 City of Chula Vista Proposed Budget to local agencies are expected to be used for local street and road maintenance. In the FY 2017‐18 CIP, the TransNet budget is more than $6.8 million. Measure P On August 2, 2016, the City Council approved Ordinance 3371 modifying the Municipal Code to establish a temporary one‐half cent General Transactions and Use Tax if approved by the voters. As part of the action to approve the Ordinance, the City Council approved a spending plan described as the Intended Infrastructure, Facilities and Equipment Expenditure Plan, which identified how the funds were to be allocated. On November 8, 2016, Chula Vista voters approved Measure P, authorizing the one‐half cent sales tax increase on retail sales within the City for a period of ten (10) years. The Finance Department created the 2016 Measure P Sales Tax Fund for the purpose of monitoring all revenues and expenditures of Measure P funds. All expenditures of Measure P funds will be tracked and accounted for by the Finance Department in accordance with Generally Accepted Accounting Principles (GAAP), and presented annually in a report to the newly created Citizens’ Oversight Committee (COC). More than $52 million is programmed as part of the FY 2017‐18 CIP. SEWER FUNDS Sewer Service Revenue The Special Sewer fund is used to account for the sale of the City’s excess Metropolitan Sewerage Capacity. A total of $30,000 in Special Service funds are programmed in the FY 2017‐18 CIP. Trunk Sewer Capital Reserve The Trunk Sewer Capital Reserve Fund is a permit fee based revenue source received from the owner or person applying for a permit to develop or modify the use of any residential, commercial, industrial or other property that may increase the volume of flow in the City’s sewer system. The funds may be used for: (1) to repair, replace or enlarge trunk sewer facilities to enhance efficiency of utilization and/or adequacy of capacity to serve the needs of the City, or (2) to plan and/or evaluate any future proposals for area‐wide sewage treatment and/or water reclamations systems and facilities. No Truck Sewer Capital Reserve funds are programmed in the FY 2017‐18 CIP. Sewer Facility Replacement Fund The Sewer Facility Replacement Fund is a fee based revenue source that all properties pay each month as part of their sewer bills. The funds can be utilized to replace, rehabilitate or upgrade existing sewer facilities. A total of $1.3 million is programmed in the FY 2017‐18 CIP. 1852017-05-23 Agenda Packet Page 414 1862017-05-23 Agenda Packet Page 415 FY2018 City of Chula Vista Proposed Budget CIP Expenditure Summary The 2018‐2022 Capital Improvement Program (CIP) is a five‐year expenditure plan that provides the City with a financial strategy for infrastructure improvements. The estimated five‐year project summary report is included at the end of this Capital Improvement Program (CIP) section. The CIP includes funding for projects and programs in various geographic areas of the City. The Adopted Fiscal Year 2017‐18 capital expenditure budget is approximately $73.9 million. The forecasted five‐year program is estimated at $133.3 million. The 2018‐2022 CIP program reflects the actions taken by Council and developed in accordance with Council adopted policies and guiding documents (such as and not limited to the City’s General Plan, Master Plans, Specific Plans and the Regional Transportation Plan) as well as generally accepted accounting principles. Overall, the 5‐year program continues to trend favorably despite the economy and the fiscal constraints facing the City. Projects in this year’s Capital Improvement Budget have been sorted by the nine‐asset management systems identified in the City’s Fiscal Recovery Plan and the Infrastructure Workshop with the City Council. This provides a mechanism to track CIP allocations by Asset Management System (AMS). The nine AMS’s include the following: The Roadway Management System (RMS) is comprised of all City‐owned assets in the Public Right‐of‐Way. These assets include: Major and Local Streets, Sidewalks, Traffic Signals & Striping, Bicycle and Pedestrian paths, ADA Ramps and Curbs and Gutters. A majority of the CIP funding is focused on the RMS. The Wastewater Management System (WMS) is comprised of Sewer Pump Stations, Rehabilitation and related projects. The Drainage Management System (DMS) is comprised of citywide storm drain facilities. The Building Management System (BMS) is comprised of City‐owned facilities including the Civic Center, Fire Stations, Libraries, Police Station, Recreation Centers, and community facilities such as Rohr Manor and the Woman’s Club. The Parks Management System (PMS) is comprised of the citywide park system. The Open Space Management System (OMS) is comprised of the Open Space Districts and Community Facility Districts (CFDs). The Fleet Management System (FMS) is comprised of infrastructure associated with maintaining City‐ owned vehicles. The General Government Management System (GGMS) includes general‐purpose items such as Automation, Utility Undergrounding and Parking Meters. The Urban Forestry Management System (UMFS) is comprised of City‐owned street trees, and trees within Public Right‐of‐Way and parks. The following chart provides an expenditure breakdown, by Asset Management System, totaling approximately $73.9 million of recommended appropriations: 1872017-05-23 Agenda Packet Page 416 FY2018 City of Chula Vista Proposed Budget Fiscal Year 2017‐18 Adopted CIP by Asset Management System ROADWAY MANAGEMENT SYSTEM (RMS) A majority of the CIP funding is focused on the Roadway Management System (RMS). The total amount programmed for Roadway projects is $36.8 million, which represents 49.8% of the adopted CIP budget. Project types within the RMS are Major Streets, Local Streets, and Traffic. The following chart and table summarizes the funding by these project types. Project Type Percentage Amount Local Streets 62% $22,871,086 Major Streets 12% $4,494,228 Traffic 26% $9,438,300 Total: 100% $36,803,614 RMS Projects Major Streets Approximately $4.5 million in funding includes the Pavement Major Rehabilitation Project (citywide), Bike Lanes on Broadway Phase II project and Bikeway Pedestrian Master Plan update. The Pavement Major Rehabilitation Project includes resurfacing and pavement overlays, which may extend street life by up to 15 years. Failure to complete proactive street maintenance will lead to the accelerated deterioration of City streets, thereby, costing more to repair in the long‐term. Local Streets More than $13.5 million in Measure P funds has been programmed for street pavement rehabilitation (citywide) based on recommendations from the City's Pavement Management System for residential streets with PCIs ranging from 0 to 25. If sufficient funding is available, additional streets with PCIs ranging from 26 to 40 will be included. Funding of more than $6.7 million is included for the Willow Street Bridge Widening Project. A total of $1.6 million has been programmed for the Pavement Minor Rehabilitation Project, replacement of sidewalks (citywide), ADA curb ramps (citywide), and the Bikeway Pedestrian Master Plan Update. Funding of $1 million is programmed for the replacement of sidewalks (citywide) in Measure P funds. Traffic Funding of $3 million in Measure P funds has been programmed to reconstruct failing and outdated traffic signals. 29.2% 10.7% 1.4% 0.4%6.8% 49.8% 1.8% Building Drainage Fleet General Gov't Parks Roadway Wastewater 1882017-05-23 Agenda Packet Page 417 FY2018 City of Chula Vista Proposed Budget Approximately $1.5 million in funding has been included for the Traffic Calming Program, Traffic Signal System Optimization, Traffic Signal and Streetlight Systems Upgrade and Modification Program, Neighborhood Traffic and Pedestrian Safety Program, and other traffic related programs. More than $1.3 million has been programmed for the retiming of Traffic Signals and installation of Fiber Optic/Ethernet Communication System along the Fourth Avenue, H Street and Main Street corridors. Approximately $1.2 million has been programmed to replace and/or install new pedestrian countdown type indications at 19 locations. This project also includes traffic signal modifications at First Avenue & L Street, Fifth Avenue & J Street, and Third Avenue & Davidson Street. A total of $800,000 has been programmed for traffic signal system communication through fiber optic, wireless and Ethernet communications in various locations throughout the city. Approximately $800,000 has been programmed to convert pedestal mounted signals to mast arm type signals at the following intersections: Broadway & Anita Street, Third Avenue & Oxford Street, Fifth Avenue & E Street, Fifth Avenue & F Street, and Fifth Avenue & G Street. Funding of $800,000 has been programmed for expansion of Adaptive Traffic Signal System at: East “H” Street between Hidden Vista Drive and Tierra Del Rey; and Telegraph Canyon Road between Canyon Plaza Driveway and Buena Vista Way. WASTEWATER MANAGEMENT SYSTEM (WMS) The appropriation for Wastewater Management System (WMS) is $1.3 million, which represents 1.8% of the adopted CIP budget. The WMS is divided into two categories: Sewer Rehabilitation & Specific Sewer Improvements, and Sewer Pump Stations & Access Roads. Sewer Rehabilitation & Specific Sewer Improvements The annual Sewer and Manhole Rehabilitation project for FY17‐18 commits $400,000 for citywide work. A total of $200,000 is included to complete sewer improvements at various locations. Funding of $200,000 is included to continue manhole inspections to establish a baseline condition in order to preserve and extend service life and avoid failures of existing structures. Sewer Pump Stations and Access Roads A total of $100,000 is included to continue rehabilitation assessment efforts of various pump stations. Sewer access roads at various locations will be rehabilitated, at a cost of $400,000. DRAINAGE MANAGEMENT SYSTEM (DMS) The appropriation for Drainage Management System (DMS) projects is $7.9 million which represents 10.7% of the adopted CIP budget. DMS Projects Drainage Approximately $6.8 million in Measure P funds has been programmed for corrugated metal pipe (CMP) rehabilitation. The rehabilitation of CMP at various locations outside the right‐of‐way will be addressed with this project. Funding of $500,000 in Gas Tax and $500,000 in TransNet has been programmed for CMP rehabilitation. The rehabilitation of CMP at various locations within the right‐of‐way will be addressed with this project. A total of $50,000 has been committed to perform drainage assessments outside the right‐of‐way to determine the probability of failure and priorities for the efficient use of funding available. . BUILDING MANAGEMENT SYSTEM (BMS) The appropriation for Building Management System (BMS) projects is $21.6 million, which represents 29.2% of the proposed CIP budget. A total of $13 million in Measure P funds is programmed for the replacement and repair of Fire Stations. The Fire Department currently operates nine fire stations to provide a network of emergency response service delivery. Three of nine Fire Stations are well beyond their service life. 1892017-05-23 Agenda Packet Page 418 FY2018 City of Chula Vista Proposed Budget Several public buildings (i.e. Animal Care Facility, Living Coast Discovery Center) are in need of heating and air conditioning replacements, roof & plumbing repairs, flooring replacements, restroom renovation, and upgrades to meet ADA standards. Funding of $3.1 million in Measure P funds is programmed to complete these necessary repairs. The Recreation Centers and Senior Center are in need of significant repairs such as roofs, water and waste water plumbing, and heating and air conditioning systems. A total of $3 million in Measure P funding has been programmed for these repairs. A total of $1.5 million in Measure P funds is programmed for repairs associated with the Civic Center and South Chula Vista Libraries. These types of repairs include roofing, plumbing, bathroom upgrades, and heating & air conditioning systems. Funding of $1 million in Measure P funds is programmed for repairs to the Police Facility such as replacing the heating and air conditioning system. FLEET MANAGEMENT SYSTEM (FMS) The appropriation for Fleet Management System (FMS) projects is $1 million, which represents 1.4% of the proposed CIP budget. A total of $1 million in Measure P funds is programmed for the replacement of the City’s vehicle fuel control, management & accounting system and upgrading the fuel dispensers. These funds will also be used to add electric charging stations at some City facilities to accommodate new electrical vehicles that will be added to the fleet. PARKS MANAGEMENT SYSTEM (PMS) The appropriation for Park Management System (PMS) projects is $5 million, which represents 6.8% of the proposed CIP budget. A total of $3 million in Measure P funds is programmed for the replacement and repair of park infrastructure. Several elements within the parks are beyond their service life and in need of repair or replacement, such as drinking fountains, irrigation controls, lights, picnic tables, play structures, playground surfacing, etc. Funding of $2 million in Measure P funds is programmed to bring the City’s sports fields up to good standing and upgrade the irrigation systems to a smart system allowing for efficient and effective water use. In addition to sports fields, the city has a total of 62 tennis courts and basketball courts. Many of these courts need repair due to worn surfaces. OPEN SPACE MANAGEMENT SYSTEM (OSMS) The Open Space Districts and Community Facility Districts (CFD’s) were established with new subdivisions beginning in the 1980s. These funding mechanisms were established to ensure sustainable improvements in the natural and landscaped areas in and around the new developments. These fees were structured to allow incremental adjustment with inflation and have generally kept pace with the maintenance needs of the districts. URBAN FORESTRY MANAGEMENT SYSTEM (UFMS) The Urban Forestry Management System is responsible for monitoring the overall health of trees throughout the City, including street trees, park trees, and trees located on City property. The City continues to maintain City street trees in order to: Ensure ongoing traffic safety along City streets; Enhance the appearance and image of the City; Improve the air quality and the environment for City residents; and Clear right‐of‐way obstructions. Industry standard sets the ideal schedule for periodic tree trimming as follows: Palms need to be trimmed every 1 or 2 years. Non‐palms are recommended to be trimmed every 3‐5 years (eucalyptus and pine every 2‐3 and broadleaf every 5‐6). Based on an inventory of about 27,500 trees and using 5 years, the annual goal is 5,500 trees. Maintenance of City trees is primarily funded via Gas Tax Funds. 1902017-05-23 Agenda Packet Page 419 FY2018 City of Chula Vista Proposed Budget GENERAL GOVERNMENT MANAGEMENT SYSTEM (GGMS) The appropriation for General Government System (GGS) projects is $268,353, which represents 0.4% of the adopted CIP budget. GGMS Projects General Government Funding of $100,000 is programmed for Utility Undergrounding Districts in the coming year. This CIP is for design services related to the roadway lighting and signal systems to be able to coordinate with the SDG&E utility undergrounding design. The City has approximately 164 Miles of aboveground electric distribution wires with an estimated cost to underground of $275 million. The Franchise Agreement with SDGE Allocation is $2 million per year from 20A Funds. Almost $40 million has been expended in undergrounding projects since the 1990’s. The most recent completed projects are the Phase I Bayfront project at $20 million, and Fourth Avenue from L Street to Orange Avenue and L Street from Monserate Avenue to Nacion Avenue, at $9.3 million. The City’s 20A fund allocation has a positive balance of $2.13 million. Staff presented a report to the Council in FY 2016‐17 and recommended that design work begin on the next UUD district on L Street from Broadway to Third Avenue. Construction could begin in FY 2018‐19. A total of $93,353 is programmed for advance planning associated with the citywide CIP Program. Funding of $75,000 will be utilized for the City’s pavement management system, which requires ongoing management for cross‐departmental coordination, regular data and system updates, data analysis of pavement conditions, and priority development based on maintenance strategies. REGIONAL PROJECTS The City of Chula Vista CIP includes funding for several studies related to regional projects. It does not include total costs of regional projects funded or led by other agencies such as Caltrans or SANDAG. However, City staff often partners or gets involved in the delivery of these projects since they provide a direct benefit to the community and sustainable infrastructure. The following is a summary of various projects: Interstate‐5 Multi‐modal Corridor Study In an effort to identify all transportation related improvements needed along, across and within the four‐mile long Interstate‐5 and rail corridor in Chula Vista, the City has combined efforts with Caltrans, Metropolitan Transit System (MTS) and SANDAG to undertake this planning level study. Funding is provided by a combination of TransNet and two Federal grants. The study has several phases of work and the first two phases have been completed. Phase III commenced in FY 2013‐14 and is for the environmental work and preliminary engineering of grade‐separating the Palomar Street light rail crossing near the intersection with Industrial Blvd. Phase I identified and prioritized needed transportation improvements to improve mobility and goods movement within the study area bounded by SR‐54 and Main Street. The results of the first phase study completed in December 2010 have already been included in the 2050 Regional Transportation Plan adopted by SANDAG in October 2011. This report is used as a technical appendix to the SANDAG 2050 Regional Transportation Plan. Rail improvements were identified as the highest near term need. http://www.sandag.org/index.asp?projectid=387&f useaction=projects.detail Phase II, the Chula Vista Light Rail Corridor Improvements Project Study Report, is a grade separation study for each of the three light rail trolley stations at E Street, H Street and Palomar Street. This document, completed in August 2012, has planning level work for the ultimate rail corridor improvements in Chula Vista. Final recommendations from the LRT Improvement study are being incorporated into the Phase III environmental work for the Palomar Street location as well as future regional plans and as individual projects into the Bayfront Development Impact Fee Program, the Western Transportation Development Impact Fee (WTDIF) Program and the CIP program. 1912017-05-23 Agenda Packet Page 420 FY2018 City of Chula Vista Proposed Budget http://www.chulavistaca.gov/Home/ShowDocume nt?id=9784 The completed Phase I and Phase II studies serve to identify an accurate project description for Phase III, a future LRT grade‐separation Environmental Impact Report (EIR) that commenced in FY 2013‐14 and completed within the next 12‐months. This environmental and preliminary design work is the last phase of the I‐5 Multi‐modal Corridor Study. The Palomar Street crossing is the highest priority LRT grade‐separation project out of 27 study locations within San Diego County. The H Street and the E street locations rank fourth and sixth, respectively. Due to the proximity of the F Street crossing and freight rail profile design constraints between the Sweetwater River and the J Street rail crossing, F Street must be grade separated along with the E Street and H Street rail crossings. In FY 2016‐17 an updated E Street & H Street Grade Separation Project Alternatives Analyses/Feasibility Study (AA/FS) Report was completed with input from the freight rail operator. This AA/FS report provides additional information on the extent of the work needed for this corridor and preliminary opinion of probable costs. Ultimate improvements for this freight and LRT rail corridor are planned for in the SANDAG Regional Transportation Plan. This project titled “Blue Line/Mid‐Coast Frequency Enhancements and rail grade separations at 28th St, 32nd St, E St, H St, Palomar St, at Taylor St and Ash St, and Blue/Orange Track Connection at 12th/Imperial” is included as in the 2015 San Diego Regional Transportation Plan “San Diego Forward: The Regional Plan” – Appendix A, as a two phased project with a planned completion date of Year 2035 for the work within Chula Vista, but no funding is yet identified other than the current work at Palomar Street. Phase I ‐ Blue Line Frequency Enhancements and rail grade separations at 28th St, 32nd St, E St, H St, Palomar St, and Blue/Orange Track Connection at 12th/Imperial (Year 2035). Phase II ‐ Blue Line rail grade separations at Taylor St and Ash St (Year 2050). In addition to the roadway and freeway network, Light Rail Trolley (LRT) maintenance upgrades at all Chula Vista at‐grade rail crossings began by MTS/SANDAG in FY 2012‐13 and work on the Anita Street crossing and the Main Street Freight Rail bridge were completed in FY 2016‐17. Over the past few years, the Blue Line Improvement Corridor has seen many upgrades and continues with several improvements to the LRT low‐floor vehicles. SANDAG will continue freight rail improvements throughout the Blue Line corridor and the San Ysidro Rail Yard. Main Street Extension from Heritage Road to La Media Road. The project is in coordination with the development community to consider several roadway alignments of which one includes a bridge over Wolf Canyon and associated utilities. The initial works involves meeting with the resource agencies and ultimately issue a request for proposal to complete the environmental document and preliminary level bridge and utility design (see STM 357). Interstate‐805/East Palomar Street Direct Access Ramp (DAR) Project The Caltrans work on Interstate‐805 will provide a new access point to/from the East Palomar Street Bridge to and from the north freeway via Direct Access Ramps which are ramps that lead to/from the center median area of the freeway instead of from the right side of the freeway. The project started construction in April 2013 and was opened to the public in time for the morning commuters on Wednesday, January 4, 2017. Landscaping work is still in progress and will continue for the next year. The freeway DAR project connects to the recently completed High Occupancy Vehicle (HOV) lanes that extend from East Naples Street to State Route‐ 94. Caltrans is currently on the design phase and right‐of‐way phase for the work on the sound walls needed between SR‐54 to East Naples Street. This work will ultimately widen the I‐805 Sweetwater River Bridge south of the SR‐54 interchange so that there is more left and right shoulder area and complete the seismic retrofit. Caltrans is pursuing construction funding for this phase at this time and if funding is approved in 2017, construction could begin in the fall and be completed by Year 2020. 1922017-05-23 Agenda Packet Page 421 FY2018 City of Chula Vista Proposed Budget The South Bay Bus Rapid Transit (SBBRT) Project The SBBRT project, coordinated by SANDAG, is expected to follow the Caltrans I‐805 Direct Access Ramp project. SANDAG, as the project manager, will design and build a 21‐mile BRT line between the Otay Mesa Port of Entry and downtown San Diego via eastern Chula Vista, I‐805 and SR‐94. The eastern Chula Vista section extends from the intersection of East Palomar Street and Oleander Avenue through Otay Ranch Town Center and the Millennia Project to SR‐125. The project will include arterial "transit only" lanes, transit signal priority, special shoulder lanes for busses‐only on the freeway, and enhanced customer amenities. Service along this corridor is expected to begin in the summer of 2018. Construction through Chula Vista is in three phases: 1. Phase 1A from Oleander Avenue to Heritage Road. This phase of work is nearing the advertising phase as final construction funding is being approved. 2. Phase 1B from Heritage Road to Olympic Parkway began construction in February 2016. 3. Phase 2, from Olympic Parkway then across the SR‐125 Toll Road via a new pedestrian and bus bridge overcrossing to Birch Road around the northerly and easterly frontage of the Otay Ranch Mall. Construction began in September 2016. Work south of Birch Road within the Millenia project area is being completed by the developer. CIP DOCUMENT The initial proposed capital improvement project detail sheets are posted annually in April of each year on the Public Works website for public comment and review. http://www.chulavistaca.gov/departments/public‐ works/projects The proposed CIP is presented at a Council Budget Workshop in May and adopted in June of every year. Additionally, the Engineering & Capital Projects Department publishes an annual adopted CIP budget. The document is made available at the City Clerk’s Office, the Civic Center Library, Otay Ranch Mall Library, the South Chula Vista Library, and the City’s website. 1932017-05-23 Agenda Packet Page 422 1942017-05-23 Agenda Packet Page 423 CAPITAL IMPROVEMENT BUDGET Funding Summary by Project Type PROPOSED BUILDING FY 2017-18 GG230 Fire Stations Repair/Replacement (Measure P)$13,000,000 GG231 Civic Center and South Libraries (Measure P)$1,500,000 GG232 Police Facility Repairs (Measure P)$1,000,000 GG233 Recreation and Senior Centers Repairs (Measure P)$3,000,000 GG234 Public Building Repairs (Measure P)$3,100,000 $21,600,000BUILDING TOTAL PROPOSED DRAINAGE FY 2017-18 DR205 CMP Rehabilitation In Right of Way FY2017/18 $1,000,000 DR209 CMP Rehab Outside ROW (Measure P)$6,850,000 DR210 Drainage Pipe Assessment Outside ROW (Measure P)$50,000 $7,900,000DRAINAGE TOTAL PROPOSED FLEET FY 2017-18 GG235 Fleet Infrastucture (Measure P)$1,000,000 $1,000,000FLEET TOTAL PROPOSED GENERAL GOVERNMENT FY 2017-18 OP202 Advance Planning-$93,353 OP219 Pavement Management System-$75,000 $168,353GENERAL GOVERNMENT TOTAL 1952017-05-23 Agenda Packet Page 424 CAPITAL IMPROVEMENT BUDGET Funding Summary by Project Type PROPOSED PARKS FY 2017-18 PR326 Park Infrastructure (Measure P)$2,000,000 PR327 Sports Courts and Fields (Measure P)$3,000,000 $5,000,000PARKS TOTAL 1962017-05-23 Agenda Packet Page 425 CAPITAL IMPROVEMENT BUDGET Funding Summary by Project Type PROPOSED ROADWAY FY 2017-18 STL261 Willow St Bridge Widening $6,705,333 STL404 Multi-Modal Pedestrian/Bikeway Master Plan-$260,000 STL423 Pavement Minor Rehabilitation FY2017/2018 $1,000,000 STL424 ADA Curb Ramps Program FY2017/2018 $150,000 STL426 Sidewalk Gap on Various locations Citywide FY 2017/18 $193,100 STL427 Street Pavement Rehab (Measure P)$13,562,653 STL428 Sidewalk Replacement (Measure P)$1,000,000 STM361 I5 Multi-Modal Corridor Imprv Study Default Scenario $200,000 STM369 Bikeway Facilities Gap Project-$75,000 STM380 Sidewalk Replacement on East H St Study $130,000 STM390 Major Pavement Rehab FY16/17 $350,000 STM392 Bike Lanes on Broadway $460,000 STM393 Major Pavement Rehabilitation FY2017/18 $3,279,228 STM394 Local Street Utility Undergrounding District $100,000 TF274 Traffic Count Stations Program $50,000 TF321 Citywide Traffic Count Stations $50,000 TF325 Traffic Monitoring Program $65,000 TF327 Neighborhood Traffic and Pedestrian Safety Program $240,000 TF332 Signing and Striping $50,000 TF345 Traffic Calming Program $150,000 TF350 Traffic Signal System Optimization Program $184,500 TF354 Traffic Congestion Relief Program-$30,000 TF356 Otay Mesa Transportation System-$20,000 TF366 Traffic Signal and Streetlight Systems Upgrade and Modification Programs $200,000 TF389 Expansion of Adaptive Traffic Signal System at: East "H" Street and Telegraph Canyon Road $800,000 TF394 Pedestrian Crosswalk Enhancement at Uncontrolled Intersections (2017)$350,000 TF397 Raised Median Improvements (2017)$80,000 TF403 Traffic Signal Communication Improvements $800,000 TF404 Retiming of Traffic Signals and Installation of Fiber Optic/Ethernet Communication System $1,323,100 TF405 Installation of Pedestrian Countdown Indication and Traffic Signal Modification $1,215,900 TF407 Traffic Signal Modifications at Five Intersections $829,800 TF408 Traffic Sig System -Fiber Ntwrk (Measure P)$3,000,000 $36,903,614ROADWAY TOTAL 1972017-05-23 Agenda Packet Page 426 CAPITAL IMPROVEMENT BUDGET Funding Summary by Project Type PROPOSED WASTEWATER FY 2017-18 SW299 Manhole Inspection Program FY 2017/18 $200,000 SW300 Sewer Pipe Rehabilitation Program FY 2017/18 $300,000 SW301 Sewer Manhole Rehabilitation Program FY 2017/18 $300,000 SW302 Sewer Access Road Rehabilitation Program FY 2017/18 $400,000 SW303 Pump Station Rehabilitation Program FY 2017/18 $100,000 $1,300,000WASTEWATER TOTAL $73,871,967GRAND TOTAL - ALL PROJECTS 1982017-05-23 Agenda Packet Page 427 Drainage $1,000,000 0 0 0 0 $1,000,000 Drainage $6,850,000 $926,025 0 0 $917,800 $8,693,825 Drainage $50,000 0 0 0 0 $50,000 Building $13,000,000 $3,500,000 $5,320,806 $1,018,743 0 $22,839,549 Building $1,500,000 0 0 0 0 $1,500,000 Building $1,000,000 0 0 0 0 $1,000,000 Building $3,000,000 0 0 0 0 $3,000,000 Building $3,100,000 0 0 0 0 $3,100,000 $1,000,000 0000$1,000,000 $93,353 $65,000 $65,000 $65,000 0 $288,353 Pavement Management Parks $3,800,000 Parks $3,000,000 0 0 $1,000,000 $2,000,000 $6,000,000 Local Streets $6,705,333 0 0 0 0 $6,705,333 $260,000 0 0 0 0 $260,000 Local Streets $1,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $9,000,000 Local Streets $150,000 $150,000 $150,000 $150,000 $150,000 $750,000 Local Streets $193,100 0 0 0 0 $193,100 Local Streets $13,562,653 0 0 $1,139,059 $1,276,188 $15,977,900 Local Streets $1,000,000 0 0 0 0 $1,000,000 Major Streets $200,000 0 0 0 0 $200,000 Major Streets $75,000 $50,000 $50,000 $50,000 0 $225,000 Major Streets $130,000 0 0 0 0 $130,000 Major Streets 0 $475,000 0 0 0 $475,000 Major Streets $350,000 $3,500,000 $3,500,000 $3,500,000 0 $10,850,000 Major Streets Major Streets $3,279,228 $3,500,000 $3,500,000 $3,500,000 $3,500,000 $17,279,228 Utility Underground $100,000 0 0 0 0 $100,000 Sewer $200,000 0 0 0 0 $200,000 Sewer $300,000 $300,000 $300,000 $300,000 $300,000 $1,500,000 Sewer $300,000 0 0 0 0 $300,000 Sewer $400,000 $400,000 $400,000 $400,000 $400,000 $2,000,000 Sewer $100,000 $100,000 $100,000 $100,000 $100,000 $500,000 City of Chula Vista 2017/18-2021/22 Capital Improvement Program SW303 Pump Station Rehabilitation Program FY 2017/18 SW301 Sewer Manhole Rehabilitation Program FY 2017/18 SW302 Sewer Access Road Rehabilitation Program FY 2017/18 SW299 Manhole Inspection Program FY 2017/18 SW300 Sewer Pipe Rehabilitation Program FY 2017/18 $460,000 STM393 Major Pavement Rehabilitation FY2017/18 STM394 Local Street Utility Undergrounding District STM390 Major Pavement Rehabilitation FY 2016/17 STM392 Bike Lanes on Broadway Phase II $460,000 0 0 0 0 STM380 Sidewalk Replacement on East H Street Study STM384 Bike Lane Improvements on Broadway - Phase I STM361 I5 Multi-Modal Corridor Imprv Study STM369 Bikeway Facilities Gap Project (Study) STL427 Street Pavement Rehabilitation (Measure P) STL428 Sidewalk Replacement Citywide (Measure P) STL424 ADA Curb Ramps Program FY2017/2018 STL426 Sidewalk Gap on Various locations Citywide FY 2017/18 STL404 Bikeway Pedestrian Master Plan 2016 Update Local Streets STL423 Pavement Minor Rehabilitation FY2017/2018 PR327 Sport Courts and Fields Renovation (Measure P) STL261 Willow Street Bridge (Widening)- Phase II-------MPO ID: CHV08 0 $175,000 PR326 Park Infratructure (Measure P)$2,000,000 0 0 $1,000,000 $800,000 OP219 Pavement Management System $75,000 $50,000 $50,000 0 GG234 Public Building Repairs (Measure P) OP202 CIP Advanced Planning CIP Advance Planing 2020/21 2021/22 GG232 Police Facility Repairs (Measure P) GG233 Recreation and Senior Center Repairs (Measure P) GG230 Fire Stations Repairs/Replacemets (Measure P) GG231 Civic Center and South Chula Vista Libraries (Measure P) 2017/18 2018/19 2019/20 DR209 CMP Rehabilitation Outside Right of Way FY2017/18 (Measure P) DR210 Drainage Pipe Assessment Outside ROW (Measure P) GG235 Fleet Infrastructure (Measure P)Fleet Management Total DR205 CMP Rehabilitation In Right of Way FY2017/18 CIP #. Project Name Category 1992017-05-23 Agenda Packet Page 428 Traffic $310,000 Traffic $250,000 Traffic $325,000 Traffic $240,000 $200,000 $200,000 $200,000 $200,000 $1,040,000 Traffic $250,000 Traffic $550,000 Traffic $184,500 $200,000 $200,000 $200,000 $200,000 $984,500 Traffic $230,000 Traffic $20,000 Traffic $200,000 $50,000 $50,000 $50,000 $50,000 $400,000 Traffic $800,000 0 0 0 0 $800,000 Traffic $350,000 0 0 0 0 $350,000 Traffic Traffic $800,000 0 0 0 0 $800,000 Traffic $1,323,100 0 0 0 0 $1,323,100 Traffic $1,215,900 0 0 0 0 $1,215,900 Traffic $829,800 0 0 0 0 $829,800 Traffic $3,000,000 0 0 0 0 $3,000,000 $73,871,967 $15,846,025 $16,265,806 $15,052,802 $12,273,988 $133,310,588 TF408 Traffic Signal System -Fiber Network (Measure P) Total: 51 TF405 Installation of Pedestrian Countdown Indication and Traffic Signal Modification TF407 Traffic Signal Modifications at Five Intersections $80,000 TF403 Traffic Signal Communication Improvements TF404 Retiming of Traffic Signals and Installation of Fiber Optic/Ethernet Communication System 000 TF394 Pedestrian Crosswalk Enhancement at Uncontrolled Intersections TF397 Raised Median Improvements $80,000 0 TF366 Traffic Signal and Streetlight Systems Upgrade and Modification Program TF389 Expansion of Adaptive Traffic Signal System at: East “H” Street and Telegraph Canyon Road $50,000 TF356 Otay Mesa Transportation System $20,000 0 0 0 0 TF350 Traffic Signal System Optimization Program TF354 Traffic Congestion Relief Program $30,000 $50,000 $50,000 $50,000 $50,000 $50,000 TF345 Traffic Calming Program $150,000 $100,000 $100,000 $100,000 $100,000 $65,000 TF327 Neighborhood Traffic and Pedestrian Safety Program TF332 Signing and Striping Program $50,000 $50,000 $50,000 TF325 Transportation Planning Program $65,000 $65,000 $65,000 $65,000 TF321 Citywide Traffic Count Program $50,000 $50,000 $50,000 $50,000 $50,000 TF274 Traffic Count Station Program $50,000 $65,000 $65,000 $65,000 $65,000 2002017-05-23 Agenda Packet Page 429 FY2018 City of Chula Vista Proposed Budget MEASURE P FUND SUMMARY 2012017-05-23 Agenda Packet Page 430 2022017-05-23 Agenda Packet Page 431 FY2018 City of Chula Vista Proposed Budget Measure P Fund Summary The Measure P fund accounts for revenues and expenditures related to the recently approved ballot measure adopting a one‐half (½) cent General Transactions and Use Tax (Sales Tax) in the City of Chula Vista. On August 2, 2016, the City Council approved Ordinance 3371 (“Ordinance”) modifying the Municipal Code to establish a temporary one‐half cent Sales Tax if approved by the voters. As part of the action to approve the Ordinance, the City Council approved a spending plan described as the Intended Infrastructure, Facilities and Equipment Expenditure Plan (Expenditure Plan), which identified how the funds were to be allocated. On November 8, 2016 Chula Vista voters approved Measure P, authorizing the one‐half cent sales tax increase on retail sales within the City for a period of ten (10) years. The spending plan has been updated to reflect, where necessary, the ratification of Measure P. Collection of the sales tax began April 1, 2017. The sales tax is projected to raise $178 million over the ten‐year collection period. The proceeds of the tax will be used to upgrade police, fire, paramedic and 9‐ 1‐1 equipment, vehicles and facilities; fund streets and sidewalks; replace storm drains to prevent sinkholes; improve parks; repair recreation facilities; and repair or replace other city infrastructure. The City has established a separate fund to track and account for income and expenses and appointed a Citizen’s Oversight Committee (“COC”) to ensure transparency in the use of Measure P Funds. Staff brought forward the fiscal year 2017‐18 Measure P Proposed Budget to the COC at a meeting of the committee on April 18, 2017. At this same meeting committee members affirmed that the fiscal year 2017‐18 Measure P Proposed Budget was in compliance with the approved expenditure plan. REVENUES The proposed fiscal year 2017‐18 budget reflects the allocation of approximately $44.2 million in net bond proceeds along with Measure P sales tax revenues of approximately $16.3 million. Total revenues anticipated to be received in the Measure P Sales Tax Fund is $60.6 million. Measure P sales tax revenue projections were based on a conservative forecast of 50% of projected sales tax revenue. Sales tax revenues are received in the City’s General Fund, and then transferred into the Measure P Sales Tax Fund. The following table reflects the fiscal year 2017‐18 revenues by category. Measure P Fund Revenues Category FY 15‐16 Actual FY 16‐17 Adopted FY 17‐18 Proposed Inc/Dec Other Revenue ‐$ ‐$ 44,239,992$ 44,239,992$ Transfers In ‐$ ‐$ 16,320,000$ 16,320,000$ Total ‐$ ‐$ 60,559,992$ 60,559,992$ 2032017-05-23 Agenda Packet Page 432 FY2018 City of Chula Vista Proposed Budget EXPENDITURES The fiscal year 2017‐18 proposed Measure P budget includes approximately $60.6 million in expenditures for a variety of infrastructure projects, equipment and fleet purchases, and technology. To follow are the major categories as noted within the adopted Expenditure Plan: Public Safety Vehicles – This category includes police patrol vehicles, police undercover vehicles, administrative and volunteer patrol vehicles, patrol motorcycles, fire engines, fire trucks, fire prevention fleet, fire utility vehicles, urban search and rescue vehicles, and brush rigs Non‐Safety City Vehicles – Includes all cars, trucks, SUV’s, and specialty vehicles that are used to support general city operations. Fire Equipment – Includes breathing apparatus, radios, etc. Fire Station Repair/Replacement – Includes the complete replacement of fire stations 5 and 9 and possible renovation or replacement of Fire Station 1. This category may include land acquisition related to fire station 9. Police Equipment – Includes the acquisition and lease payments on the Computer Aided Dispatch System and Regional Communication System & radios. Police Facility Repairs – General rehabilitation on the City police facility. Recreation Centers and Senior Center – Replace roofs, lighting, bathrooms, flooring, pools, decking, paint, and all other necessary repair work as identified in the City’s Asset Management Program. Civic Center and South Chula Vista Libraries ‐ Replace roofs, lighting, bathrooms, flooring, decking, paint, and all other necessary repair work as identified in the City’s Asset Management Program. Other Public Buildings – General rehabilitation projects at the City’s Animal Care Facility and Living Coast Discovery Center. Sports Courts and Fields – Replacement of turf, irrigation, lighting, resurfacing tennis and basketball courts, field rehab, etc. Park Infrastructure – Replacement of playground structures including pour in place foundations, irrigation, lighting, sidewalks, paths. Street Pavement – Resurfacing, reconditioning, and replacement of arterial, collector, and residential streets throughout the City. Traffic Signal System – Installation of fiber optic networks for traffic signal communication throughout the City. Other Infrastructure – May include but is not limited to storm drains, sidewalks, trees, technology, etc. The following table provides the detailed breakdown of the Measure P expenditures by project category. 2042017-05-23 Agenda Packet Page 433 FY2018 City of Chula Vista Proposed Budget Project FY17 ‐18 Proposed Fire Vehicles 1,975,080$ Police Vehicles 1,798,760$ Non‐Safety city Vehicles 3,818,000$ Fire Equipment 1,202,000$ Police Communications & Dipatch System 353,499$ Regional Communications System (RCS) 350,000$ Fire Stations Repair/Replacement 13,000,000$ Police Facility Repairs 1,000,000$ Recreation Centers and Senior Center 3,000,000$ Civic Center and South Chula Vista Libraries 1,500,000$ Other Public Bldgs (i.e. Animal Care Facility & Living Coa st DC) 3,100,000$ Sports Courts and Fields 3,000,000$ Park Infrastructure 2,000,000$ Street Pavement (Arterials/Collectors/Residential)13,562,653$ Traffic Signal System 3,000,000$ Other Infrastructure (Storm Drains, Sidewalks, Trees etc)7,900,000$ Total Project Expenditures 60,559,992$ 2052017-05-23 Agenda Packet Page 434 2062017-05-23 Agenda Packet Page 435 2016 MEASURE P SALES TAX FUND 201 FUND SUMMARY ACTUAL ACTUAL ADOPTED PROPOSEDBUDGET CATEGORY FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 EXPENDITURES Supplies and Services 0 0 0 1,555,499 Other Expenses 0 0 0 350,000 Capital 0 0 0 6,347,440 Transfers Out 0 0 0 244,400 CIP Project Expenditures 0 0 0 52,062,653 TOTAL EXPENDITURES $0 $0 $0 $60,559,992 REVENUES Other Revenue 0 0 0 44,239,992 Transfers In 0 0 0 16,320,000 TOTAL REVENUES $0 $0 $0 $60,559,992 $0 $0 $0 $0NET FUND ACTIVITY 2072017-05-23 Agenda Packet Page 436 2082017-05-23 Agenda Packet Page 437 FY2018 City of Chula Vista Proposed Budget SUMMARY TABLES Fund Appropriations by Department and Expenditure Category Schedule of Revenues Fund Balance Projections Schedule of Interfund Transfers Authorized Positions by Department 2092017-05-23 Agenda Packet Page 438 2102017-05-23 Agenda Packet Page 439 FY2018 City of Chula Vista Proposed Budget FUND APPROPRIATIONS BY DEPARTMENT AND EXPENDITURE CATEGORY 2112017-05-23 Agenda Packet Page 440 2122017-05-23 Agenda Packet Page 441 PROPOSED EXPENDITURES BY DEPARTMENT / CATEGORYPERSONNEL SERVICESSUPPLIES & SERVICES UTILITIESOPERATINGCAPITALTRANSFERS OUTCIP PROJECTSDEPT / FUNDOTHER EXPENSESNON-CIP PROJECTSFiscal Year 2017-18TOTALFY 2017-181,501,7940105,8471,3073,19001100 City Council 0001,612,138009,1870002000 Boards and Commissions 0009,187721,6520219,350688003000 City Clerk 000941,6902,670,2550303,3001,8564,94804000 City Attorney 0002,980,3591,953,937088,8128323,41605000 Administration 0002,046,9972,322,33201,358,58011,90787,89006000 Information Technology Srvcs 0003,780,7092,353,6140413,6861,4579,27207000 Human Resources 0002,778,0293,573,8430201,7362,21215,49908000 Finance 0003,793,290309,800167,5001,839,0618,255009000 Non-Departmental 22,490,4790024,815,0952,472,4334,500477,66545,3476,28210000 Animal Care Facility 0003,006,2272,024,8660168,4222,4971,52011000 Economic Development0002,197,3052,519,42412,000174,3632,37550012000 Planning and Building Services0002,708,6626,852,212108,500459,750867,08110,00013000 Engineering and Capital Projects389,700008,687,24349,988,573123,2432,767,798451,602014000 Police 00053,331,21625,238,90002,271,285201,327015000 Fire 62,3260027,773,83812,444,64619,5002,568,8652,838,8325,17116000 Public Works 0018,70017,895,7143,298,547206,796583,845328,0242,52317000 Recreation 0004,419,7353,309,240400202,879297,306018000 Library 0003,809,825123,556,068642,43914,214,4315,062,905150,21122,942,5050100 GENERAL FUND TOTAL18,700166,587,2590350,0001,555,49906,347,440201 2016Measure P Sales Tax Fund244,40052,062,653060,559,99200000221 Gas Tax 4,259,4281,618,00005,877,428025,000000225 Traffic Signal 0338,1660363,16600000227 Transp Sales Tax Fund 06,800,61206,800,612212,8240178,1770193,469234 Advanced Life Support Program 972,453001,556,923005,00000235 Legislative Counsel Fund 0005,0000163,500345,70013,0700241 Parking Meter 000522,2700038,50000245 Traffic Safety 399,14000437,640492,714075,00000251 Supp Law Enforcement Serv Fund21,51300589,2275,690,526241,940294,538065,000252 Police Dept Grants Fund 0006,292,00429,3502,00051,00000253 Inmate Welfare Fund 00082,35098,4150000254 Local Law Enforc blk Grant Pro00098,41500254,9520100,000256 Asset Seizure 000354,95201,20040000267 McCandliss memorial Cult Arts 0001,60045,00050,0005,00000269 Other Grants Fund 000100,0002132017-05-23 Agenda Packet Page 442 PROPOSED EXPENDITURES BY DEPARTMENT / CATEGORYPERSONNEL SERVICESSUPPLIES & SERVICES UTILITIESOPERATINGCAPITALTRANSFERS OUTCIP PROJECTSDEPT / FUNDOTHER EXPENSESNON-CIP PROJECTSFiscal Year 2017-18TOTALFY 2017-18037,00028,00000270 Mobilehome Admin fee fund 00065,000300,73030,005153,34400272 Federal Grants Fund 000484,07900000273 State Grants Fund 0350,0000350,000022,333000274 Amer. Recovery & Reinvest. Act00022,33342,19763,275372,22900281 Waste Mgmt & Recycling 000477,701741,914218,351864,67810,35564,600282 Environmental Services 107,585002,007,483264,570528,454839,97802,593285 Energy Conserv Fund 0001,635,59500348,1008400301 Storm Drain Revenue 000348,940650,1311,010,000179,0001,1550313 CV Housing Authority Fund 254,697002,094,98300300,0000300,000316 Public Educational & Govt. Fee000600,0000629,0006,00000318 Redv Obligation Retirement Fnd2,563,000003,198,00004,615,9835,60006,000319 Housing - SA 0004,627,583046,0005,10000311 CDBG Housing Program Fund 00051,1000232,50006,40050,600321 Home Program Fund 000289,50002,00002,1309,870333 Comm Dev Block Grant Fund 762,200050,100826,3000819,170384,90800341 Public Liability Trust 0001,204,078043,17490,70816,9061,708342 CFD 11-M RHR McMillin 000152,496077,950160,986120,4476,164343 CFD 12-M Village 7 MM 000365,547047,785111,89373,2900344 CFD 13-M Otay Ranch Village 2 000232,968078,269239,029173,7756,214345 CFD 12M Village 7 Otay Ranch 000497,287011,000136,09911,0250346 CFD 14M- A - EUC Millenia 000158,124010,00044,0287,4750347 CFD 14M- B- EUC Millenia Parks00061,50305,000000348 CFD 18M Village 3 Otay Ranch0005,00005,00043,36411,2520349 CFD 19M Freeway Commercial 200059,61603,5565,8423,1020352 Bay Blvd Ldscpng Dist Fund 00012,500062,175180,91288,9670353 Eastlake Maintenance District 000332,054019,15538,31427,9720354 Open Space District #1 00085,4410010,7964,1210355 Open Space District #2 00014,91707,41933,40311,7800356 Open Space District #3 00052,602021,27148,22622,3700357 Open Space District #4 00091,867011,46321,78218,8000358 Open Space District #5 00052,04509,13513,49311,5500359 Open Space District #6 00034,17804,4388,0482,2500361 Open Space District #7 00014,736010,14644,40219,5100362 Open Space District #8 00074,058011,31838,21323,9280363 Open Space District #9 00073,459013,51239,51431,5370364 Open Space District #10 00084,5632142017-05-23 Agenda Packet Page 443 PROPOSED EXPENDITURES BY DEPARTMENT / CATEGORYPERSONNEL SERVICESSUPPLIES & SERVICES UTILITIESOPERATINGCAPITALTRANSFERS OUTCIP PROJECTSDEPT / FUNDOTHER EXPENSESNON-CIP PROJECTSFiscal Year 2017-18TOTALFY 2017-18034,75474,93962,4500365 Open Space District #11 000172,143045,108152,756163,5960367 Open Space District #14 000361,4600019,4363,4690368 Open Space District #15 00022,90501,9666,88200369 Open Space District #17 Fund 0008,848035,44273,11069,2840371 Open Space District #18 Fund 000177,8360253,110849,907374,0830372 Open Space District #20 Fund 0001,477,100016,01823,64210,3060373 Open Space District #23 Fund 00049,9660017,25013,9000374 Open Space District #24 Fund 00031,150008,5953,0180375 Open Space District #26 00011,613050,06573,98054,2940376 Open Space District #31 Fund 000178,3390182,028360,082134,6288,635378 CFD 07M Improvement Areas 000685,3730233,903470,005302,91512,685379 CFD 08M Village 6 0001,019,5080180,619601,896210,08712,694380 CFD 09M OR Vlg II Brookfld She0001,005,2960130,588442,912209,0299,954382 CFD 99-2 Otay Ranch Vlg 1 West000792,483060,000542,50000386 Otay Ranch Preserve 000602,5000145,314548,068210,97011,537387 CFD 98-3 Sunbow 2 000915,8890364,0781,526,242480,34930,411388 Community Facility Dst 97-1 OR0002,401,0801,012,0794002,360,974131,0900391 Central Garage Fund 0003,504,54303,702,764826,35900398 Workers Compensation 0004,529,12300000406 Chula Vista Muni Golf Course132,58000132,5807,167,896195,000588,0955,65085,500408 Development Services Fund 1,796,648009,838,789005,280339,2630409 CV Elite Athlete Training Center000344,5430350,000000413 Trunk Sewer Capital Reserve 000350,0004,818,93475,00028,379,8103311,409,200414 Sewer Service Revenue 3,153,23430,000037,866,50900000428 Sewer Facility Replacement 150,0001,300,00001,450,000012,000000432 Poggi Cyn Sewer Basin DIF 00012,000070,000100,00000433 Salt Creek Sewer Basin DIF 200,00000370,0000762,200000442 CDBG Section 108 Loan 000762,20000000451 Long-term Advances DSF - City 1,385,000001,385,0000594,540000452 Equipment Lease 000594,5400638,400000453 Energy Conservation Loans 000638,40003,597,5006,00000475 2014 Refunding COP 0003,603,50002,926,2005,00000476 2015 Refunding COP 0002,931,2000283,0005,00000477 2016 COP000288,00002,144,0005,00000478 2016 LRRB COP Refinance0002,149,000002,50000507 Otay Vly Rd AD 90-2 Impvt Fund0002,5002152017-05-23 Agenda Packet Page 444 PROPOSED EXPENDITURES BY DEPARTMENT / CATEGORYPERSONNEL SERVICESSUPPLIES & SERVICES UTILITIESOPERATINGCAPITALTRANSFERS OUTCIP PROJECTSDEPT / FUNDOTHER EXPENSESNON-CIP PROJECTSFiscal Year 2017-18TOTALFY 2017-1800000517 AD2004-1 Dixon Drive 31,6000031,60000000518 AD2005-1 Tobias Drive 35,1900035,190010,000000542 Tele Cyn Drainage Plan Dif Fun00010,0000250,00056,10000571 PFDIF General Administration 000306,10000000572 PFDIF - Civic Center Expansion3,175,192003,175,19200000573 Police Facilities Remodel 1,598,150001,598,15000000574 Corporation Yard Relocation 728,96600728,96600000576 Fire Suppression Sys Expansion1,035,000001,035,000030,000000587 Otay Ranch VLG Ped Ramp DIF 00030,000030,000000588 OR Vlg11 Pedestrian Bridge DIF00030,000050,000000718 EUC Millenia Ped Bridge DIF00050,0000450,00080000591 Transportation DIF 03,370,33303,821,133060,000000593 Western TDIF 00060,00000000661 05 ERAF - SA 1,848001,84800000662 06 ERAF - SA 1,861001,86101,173,0005,00000666 2016 TARBs0001,178,0000350,000000692 Long-term Advances DSF-RDA S000350,000035,00050,00000715 Park Land Acquisition Fund 00085,000025,000000716 Western-Park Acquisition & Dev50,0000075,00000000717 Resident. Construct/Conver Fnd668,27800668,2780065,00000723 Bicycle Facilities Fund 00065,00000000736 Other Transportation Programs 08,002,20308,002,203GRAND TOTAL ALL FUNDS145,123,34829,728,91360,067,3068,555,6248,884,48546,670,46873,871,96768,800372,970,9112162017-05-23 Agenda Packet Page 445 FY2018 City of Chula Vista Proposed Budget SCHEDULE OF REVENUES 2172017-05-23 Agenda Packet Page 446 2182017-05-23 Agenda Packet Page 447 SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18100GENERAL FUNDProperty Taxes27,451,232 28,616,729 30,220,1803000 Property Tax31,174,82733,620,932TOTAL$27,451,232 $28,616,729 $30,220,180$33,620,932$31,174,827Other Local Taxes29,985,219 31,257,515 34,180,2563010 Sales Tax33,182,55250,087,4668,845,067 10,831,671 11,709,9773020 Franchise Fees11,795,95111,968,64617,525,294 6,364,691 5,844,2483030 Utility Taxes6,379,9645,860,3281,328,554 1,407,145 1,538,5953040 Business License Tax1,424,6431,424,6432,632,774 3,136,847 3,827,2443050 Transient Occupancy Tax3,654,7794,316,267949,603 1,013,526 1,253,4793070 Real Property Transfer Tax1,023,6611,173,550TOTAL$61,266,511 $54,011,395 $58,353,799$74,830,900$57,461,550Licenses and Permits150,879 134,042 124,9263100 Licenses132,600175,300267,938 251,375 293,4213120 Dev / Improvement Permits266,455266,455896,628 896,239 881,9163140 Regulatory Permits922,0301,068,877009803160 Other Permits014,000TOTAL$1,315,445 $1,281,656 $1,301,243$1,524,632$1,321,085Fines, Forfeitures, Penalties494,211 781,454 630,1343200 Community Appearance Penalties420,700470,42399,627 457,077 233,5793210 Law Enforcement Penalties232,000237,000279,084 273,220 269,4533240 Parking Penalties250,000250,000136,814 126,500 116,2913250 Other Penalties118,000118,000TOTAL$1,009,736 $1,638,251 $1,249,457$1,075,423$1,020,700Use of Money & Property356,840 317,745 212,4383300 Investment Earnings200,000200,0000 161,24003310 Sale of Real Property0058,043 78,501 48,2213320 Sale of Personal Property8,0008,00052,449 51,548 55,8753330 Rental/Lease of Equipment58,77258,772963,843 1,044,271 1,154,7003350 Rental/Lease of Land and Space1,091,3971,127,0181,091,740 1,178,734 1,408,6323370 Rental/Lease of Buildings1,373,4321,027,325TOTAL$2,522,915 $2,832,039 $2,879,866$2,421,115$2,731,6012192017-05-23 Agenda Packet Page 448 SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18Revenue from Other Agencies567,615 597,219 676,9263400 State Grants568,826591,826226,938 225,986 223,1983440 State Tax Sharing228,246228,24616,773,957 17,884,321 18,934,6563460 Motor Vehicle License Fees19,692,43620,844,03951,2846,408 541,8583480 State Reimbursements7,2337,233486,626 458,484 578,0323500 Federal Grants544,603415,87516,804 37,177 61,1833580 Federal Reimbursements42,00042,0006,8455,5007,4653600 Other Agency Grants2,0002,0001,348,040 828,326 665,0003690 Other Agency Revenue664,000664,000TOTAL$19,478,109 $20,043,421 $21,688,318$22,795,219$21,749,344Charges for Services1,449,571 1,213,086 1,073,5573700 Zoning Fees875,5641,044,66487,522 136,164 357,8653720 Document Fees207,237327,2376,7903,6963013730 Plan Checking Fees00366,158 454,851 490,2133740 Inspection Fees334,580497,08000403750 Filing Fees009,88660003770 Other Dev Fees001,667,067 1,560,827 1,390,9593800 Animal Shelter Contracts1,310,9041,407,593957,682 973,964 986,6253830 Services to the Port District1,010,3041,010,304868,164 879,535 950,5763900 Recreation Program Fees947,5021,033,311403,218 427,894 401,7403950 Class Admission Fees443,941437,875164,768 246,068 207,5973970 Referral Fees188,000138,2771,684,748 1,739,327 1,663,0274200 Staff Services Reimbursements1,494,2502,064,714276,190 259,655 265,3104300 Fees for Other Services267,000294,200TOTAL$7,941,764 $7,895,667 $7,787,810$8,255,255$7,079,282Other Revenue426,705 150,459 203,4294410 DIF Reimbursements177,721163,975292,419 189,95104420 Transit Reimbursements004,4685,3975,5604430 Redev Agency Reimbursements1,8001,8001,884,161 2,055,227 1,972,6964440 Open Space/Assess Dist Reimb2,084,0872,011,7034,273,692 4,758,399 4,434,1474450 CIP Reimbursements4,544,0094,475,271443,524 62,970 94,4784460 CDBG/Home Reimbursements60,10060,1002,874,051 4,290,278 3,731,9344480 Other City Funds Reimbursement2,923,8293,110,36600 36,9394600 Assessments30,00030,0002202017-05-23 Agenda Packet Page 449 SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-1861,864 74,928 68,9964700 Collection Charges80,00080,0004,6433,7811,7084800 Sale of Goods2,6502,6501,010,207 1,798,691 1,816,9084900 Other Revenue2,081,574921,415TOTAL$11,275,734 $13,390,081 $12,366,795$10,857,280$11,985,770Transfers In10,097,493 10,550,802 9,837,9575000 Transfers In11,937,17111,206,503TOTAL$10,097,493 $10,550,802 $9,837,957$11,206,503$11,937,171$142,358,939 $140,260,041 $145,685,425$166,587,259TOTAL - 100 GENERAL FUND$146,461,3302012016 MEASURE P SALES TAX FUND0004900 Other Revenue044,239,9920005000 Transfers In016,320,000$0$0$0$60,559,992TOTAL - 201 2016 MEASURE P SALES TAX FUND$0220TRANSPORTATION FUNDS898,172 11,489,633 2,535,4643010 Sales Tax8,239,1316,087,00076,338 59,901 131,4303300 Investment Earnings004,319,400003400 State Grants007,890,623 6,483,721 5,632,3593440 State Tax Sharing5,258,5825,537,543294,165 358,787 990,4503600 Other Agency Grants47,9690207,016 279,738 184,4013770 Other Dev Fees200,000200,0001,7781,45504440 Open Space/Assess Dist Reimb0024,085 126,42604450 CIP Reimbursements00330,081 384,446 114,1824480 Other City Funds Reimbursement0019,999 29,81405000 Transfers In00$14,061,657 $19,213,921 $9,588,286$11,824,543TOTAL - 220 TRANSPORTATION FUNDS$13,745,682230DEVELOPER DEPOSITS16,914 16,000 48,6173300 Investment Earnings008,022,857 8,381,649 6,646,8523760 Other Dev Fees00$8,039,771 $8,397,649 $6,695,469$0TOTAL - 230 DEVELOPER DEPOSITS$02212017-05-23 Agenda Packet Page 450 SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18234ADVANCED LIFE SUPPORT1,316,182 1,534,430 1,476,3153690 Other Agency Revenue1,552,8731,556,923$1,316,182 $1,534,430 $1,476,315$1,556,923TOTAL - 234 ADVANCED LIFE SUPPORT$1,552,873240PARKING39,897 40,598 26,7773160 Other Permits35,00025,000232,857 173,565 173,3173240 Parking Penalties200,000200,00012,5187,372 22,8363300 Investment Earnings00379,690 375,405 358,5453350 Rental/Lease of Land and Space350,000365,0002,001604900 Other Revenue00$666,963 $596,946 $581,475$590,000TOTAL - 240 PARKING$585,000250PUBLIC SAFETY427,460 441,515 508,0823210 Law Enforcement Penalties437,640437,64010,3528,428 25,7323300 Investment Earnings0001,030 03320 Sale of Personal Property0012,1739,379 24,0793350 Rental/Lease of Land and Space20,00020,000383,103 923,169 470,5883400 State Grants401,014401,0144,302,468 4,952,526 4,812,1603500 Federal Grants5,972,3246,196,739869,705 832,729 383,5543600 Other Agency Grants00170,476 260,823 200,1493690 Other Agency Revenue162,60092,426144,800 134,120 123,8414200 Staff Services Reimbursements134,710140,29601,023 04480 Other City Funds Reimbursement001,868 38,819 39,8974800 Sale of Goods10,00020,00036,221 21,862 14,7104900 Other Revenue20,00020,00042,753 51,226 77,1395000 Transfers In86,021150,958$6,401,379 $7,676,649 $6,679,931$7,479,073TOTAL - 250 PUBLIC SAFETY$7,244,309260LIBRARY/CULTURAL ARTS FUNDS1,8203926273300 Investment Earnings00$1,820$392$627$0TOTAL - 260 LIBRARY/CULTURAL ARTS FUNDS$02222017-05-23 Agenda Packet Page 451 SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18270SUNDRY GRANTS & MISC21,077 21,685 30,4553300 Investment Earnings00157,945 2,776,762 512,9393400 State Grants60,000350,0001,531,268 1,367,569 909,0673500 Federal Grants996,821421,75314,737 26,858 54,2903600 Other Agency Grants50,00050,000117,055 84,180 85,7904200 Staff Services Reimbursements65,00065,0001,63301,9414480 Other City Funds Reimbursement0023,434 46,817 43,9784900 Other Revenue22,33322,3338,060,513 51,615 61,6205000 Transfers In112,326112,326$9,927,662 $4,375,486 $1,700,080$1,021,412TOTAL - 270 SUNDRY GRANTS & MISC$1,306,480280CONSERVATION16,6809,672 21,1913300 Investment Earnings00174,843 661,008 751,6213400 State Grants336,091403,4261,050,492 796,133 937,1903600 Other Agency Grants1,783,1851,709,87012801713700 Zoning Fees00002643900 Recreation Program Fees001,8301,6101,3304200 Staff Services Reimbursements001,102,615 1,086,836 1,159,7744300 Fees for Other Services1,262,2791,262,279232,231 141,585 314,7104480 Other City Funds Reimbursement139,726139,7262,121,500004900 Other Revenue00$4,700,319 $2,696,844 $3,186,251$3,515,301TOTAL - 280 CONSERVATION$3,521,281301STORM DRAIN REVENUE FUND0003120 Dev / Improvement Permits23,75023,750(4,341) 24,431 11,8003230 Environmental Fines Penalties5,0005,0001,850(833)3,4823300 Investment Earnings00600,025 624,232 605,2074020 Storm Drain Fees555,500555,50002901,3934700 Collection Charges00$597,534 $648,120 $621,882$584,250TOTAL - 301 STORM DRAIN REVENUE FUND$584,250310HOUSING PROGRAM FUND5,355 15,940 16,4243300 Investment Earnings002232017-05-23 Agenda Packet Page 452 SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-1818,3497,4585923700 Zoning Fees00372,660003760 Other Dev Fees001,0001,0001,0004200 Staff Services Reimbursements00230,781 113,335 193,5244300 Fees for Other Services100,000100,000160,044 201,438 102,8734430 Redev Agency Reimbursements326,058752,483405,254 443,175 463,5144460 CDBG/Home Reimbursements455,613114,50056,421 44,602 85,2904480 Other City Funds Reimbursement93,000128,000100,008 26,7228,3104900 Other Revenue00$1,349,872 $853,670 $871,527$1,094,983TOTAL - 310 HOUSING PROGRAM FUND$974,671316PUBLIC EDUCATIONAL & GOVT. FEE654,842 679,354 664,4703020 Franchise Fees600,000600,0004,9244,141 17,1093300 Investment Earnings00$659,766 $683,495 $681,579$600,000TOTAL - 316 PUBLIC EDUCATIONAL & GOVT. FEE$600,000318REDV OBLIGATION RETIREMENT6,144,146 6,179,288 5,314,6873000 Property Tax4,967,1494,967,15010,640 15,778 42,3103300 Investment Earnings000005000 Transfers In03,709$6,154,786 $6,195,066 $5,356,997$4,970,859TOTAL - 318 REDV OBLIGATION RETIREMENT$4,967,149319HOUSING - SA423,627 749,380 997,6603300 Investment Earnings0200,00056,612003310 Sale of Real Property0014,944 13,954 11,6283350 Rental/Lease of Land and Space15,00015,000021 03370 Rental/Lease of Buildings0020,9793,3586,2084200 Staff Services Reimbursements002,192004420 Transit Reimbursements00103,872 199,741 629,2924900 Other Revenue0200,0000005000 Transfers In963,9310$622,226 $966,454 $1,644,788$415,000TOTAL - 319 HOUSING - SA$978,9312242017-05-23 Agenda Packet Page 453 SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18320COMM DEV BLOCK GRANTS FUND12,067 31,114 15,4753300 Investment Earnings000 35,569 76,2333350 Rental/Lease of Land and Space79,00079,0003,415,216 2,109,028 2,382,3703500 Federal Grants2,853,055976,300140004200 Staff Services Reimbursements0000 14,0004460 CDBG/Home Reimbursements00441004480 Other City Funds Reimbursement0055,269 103,714 256,5584900 Other Revenue0009,597 05000 Transfers In031,600$3,483,133 $2,289,022 $2,744,636$1,086,900TOTAL - 320 COMM DEV BLOCK GRANTS FUND$2,932,055341PUBLIC LIABILITY TRUST304,810004480 Other City Funds Reimbursement001,321,009 442,646 500,6815000 Transfers In520,0001,284,078$1,625,819 $442,646 $500,681$1,284,078TOTAL - 341 PUBLIC LIABILITY TRUST$520,000350OPEN SPACE DISTRICT FUNDS169,089 91,222 227,6633300 Investment Earnings0057003350 Rental/Lease of Land and Space009,203,769 8,682,473 11,430,3804600 Assessments11,994,38214,513,4048340 20,5444900 Other Revenue00$9,373,749 $8,773,695 $11,678,587$14,513,404TOTAL - 350 OPEN SPACE DISTRICT FUNDS$11,994,382390FLEET MANAGEMENT13,6136,106 15,0313300 Investment Earnings001,5761,3123,6003320 Sale of Personal Property0055,542 91,950 67,4194200 Staff Services Reimbursements35,00035,000368,561 168,98004420 Transit Reimbursements00175004480 Other City Funds Reimbursement003,224,285 3,543,500 3,727,0874900 Other Revenue3,604,4543,384,2760 87,572 340,0355000 Transfers In085,267$3,663,752 $3,899,420 $4,153,172$3,504,543TOTAL - 390 FLEET MANAGEMENT$3,639,4542252017-05-23 Agenda Packet Page 454 SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18393TECHNOLOGY REPLACEMENT600,000005000 Transfers In00$600,000$0$0$0TOTAL - 393 TECHNOLOGY REPLACEMENT$0398WORKERS COMPENSATION2,3180 1,189,7284480 Other City Funds Reimbursement25,00025,0002,106,790 2,631,734 3,247,3594900 Other Revenue3,494,7145,004,1230 950,000 503,3465000 Transfers In00$2,109,108 $3,581,734 $4,940,433$5,029,123TOTAL - 398 WORKERS COMPENSATION$3,519,714400TRANSIT FUNDS7,9031,2367,6923300 Investment Earnings000 24,377 18,3623320 Sale of Personal Property003,800,358 2,531,79903400 State Grants004,6543,95604200 Staff Services Reimbursements002,667,576 1,499,30704300 Fees for Other Services000 81,88504480 Other City Funds Reimbursement00212,196 256,222 16,4294900 Other Revenue0023,701005000 Transfers In00$6,716,388 $4,398,782 $42,483$0TOTAL - 400 TRANSIT FUNDS$0406CHULA VISTA MUNICIPAL GOLF COURSE0003370 Rental/Lease of Buildings0132,580$0$0$0$132,580TOTAL - 406 CHULA VISTA MUNICIPAL GOLF COURSE$0408DEVELOPMENT SERVICES FUND7,8457,2268,1143780 Other State Revenue 7,0007,0001,735,402 1,949,675 2,070,8993120 Dev / Improvement Permits1,905,3122,062,6292,312,855 2,041,237 2,155,1333700 Zoning Fees3,030,5773,035,827154902203720 Document Fees5005001,360,370 1,143,633 1,801,0803730 Plan Checking Fees2,504,7552,504,75569,449 84,726 56,0633740 Inspection Fees154,040154,0401,03829703770 Other Dev Fees2,0002,0002262017-05-23 Agenda Packet Page 455 SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-1832,49302504200 Staff Services Reimbursements0050,065 52,160 42,2644410 DIF Reimbursements489,407489,4072,1709,9014,6604440 Open Space/Assess Dist Reimb175,000175,000271,980 233,200 148,1384450 CIP Reimbursements510,255510,2551,12302,0384460 CDBG/Home Reimbursements00493,551 596,419 258,0764480 Other City Funds Reimbursement34,48534,485117 11,904 16,8344900 Other Revenue00628,181 448,687 626,6165000 Transfers In841,959863,791$6,966,793 $6,579,155 $7,190,385$9,839,689TOTAL - 408 DEVELOPMENT SERVICES FUND$9,655,290409CV ELITE ATHLETE TRAINING CENTER0003690 Other Agency Revenue0339,2630005000 Transfers In020,000$0$0$0$359,263TOTAL - 409 CV ELITE ATHLETE TRAINING CENTER$0410SEWER FUNDS11,120 28,520 40,5023120 Dev / Improvement Permits40,00040,0001,373,068 628,219 1,286,7173300 Investment Earnings301,726301,72621,976 15,365 36,7063700 Zoning Fees18,50018,50033,039,714 35,925,367 35,216,7064000 Sewer Fees33,212,69933,212,699(2,525)004040 Industrial Waste Fees0050,625 36,597 58,2024100 Pump Station Fees004,5507264,6154200 Staff Services Reimbursements007,200004410 DIF Reimbursements0058,818 33,4751,6214440 Open Space/Assess Dist Reimb0020,7179,413 64,2314450 CIP Reimbursements15,00015,0000594 352,5454480 Other City Funds Reimbursement004414,5472464600 Assessments00626,854 441,418 439,2354700 Collection Charges330,000400,0006,822,903 4,916,652 340,6394900 Other Revenue00565,495 118,250 8,438,9835000 Transfers In485,000350,000$42,600,956 $42,159,143 $46,280,948$34,337,925TOTAL - 410 SEWER FUNDS$34,402,9252272017-05-23 Agenda Packet Page 456 SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18430SEWER DIF FUNDS102,104 12,522 63,5323300 Investment Earnings00268,092 166,333 239,1434350 Sewer / Drainage DIF220,000400,000002,5255000 Transfers In00$370,196 $178,855 $305,200$400,000TOTAL - 430 SEWER DIF FUNDS$220,000440DEBT SERVICE - CITY FUNDS1,0556849,3813300 Investment Earnings00145,494 153,684 197,0164480 Other City Funds Reimbursement173,001168,0002,741,033 1,733,873 5,415,6145000 Transfers In4,797,7693,212,140$2,887,582 $1,888,241 $5,622,011$3,380,140TOTAL - 440 DEBT SERVICE - CITY FUNDS$4,970,770470DEBT SVC-CV PUBLIC FINANCING AUTH111,629 188,921 685,1413300 Investment Earnings0049,457,1110 36,592,4934900 Other Revenue0012,842,973 9,547,649 49,358,9735000 Transfers In9,437,1358,971,700$62,411,713 $9,736,570 $86,636,607$8,971,700TOTAL - 470 DEBT SVC-CV PUBLIC FINANCING AUTH$9,437,135500ASSESS DIST IMPROVEMENT FUNDS24,792 14,745 39,6793300 Investment Earnings00003,8614340 Transportation DIF0018,784 18,865 18,7864600 Assessments0000 285,8035000 Transfers In00$43,576 $33,610 $348,129$0TOTAL - 500 ASSESS DIST IMPROVEMENT FUNDS$0542TELEGRAPH CANYON DRAINAGE DIF66,577 39,520 76,0563300 Investment Earnings00$66,577 $39,520 $76,056$0TOTAL - 542 TELEGRAPH CANYON DRAINAGE DIF$0560PUBLIC FACILITIES DIF256,279 86,036 275,4693300 Investment Earnings003,730003320 Sale of Personal Property002282017-05-23 Agenda Packet Page 457 SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-184,554,723 5,371,592 6,473,8914330 Public Facilities DIF2,850,0005,300,000146,60802254900 Other Revenue000 140,3382,5525000 Transfers In00$4,961,340 $5,597,966 $6,752,137$5,300,000TOTAL - 560 PUBLIC FACILITIES DIF$2,850,000580PEDESTRIAN BRIDGE DIF40,741 26,860 73,8813300 Investment Earnings00345,770 313,945 253,5374380 OR Pedestrian Bridge DIF110,000145,000$386,511 $340,805 $327,418$145,000TOTAL - 580 PEDESTRIAN BRIDGE DIF$110,000590TRANSPORTATION DIF FUND138,990 159,300 169,6233300 Investment Earnings002,001,362 726,812 1,726,2234340 Transportation DIF1,591,6001,591,60036,8516,444 2,607,0305000 Transfers In1,045,0001,035,000$2,177,203 $892,556 $4,502,876$2,626,600TOTAL - 590 TRANSPORTATION DIF FUND$2,636,600600REDEVELOPMENT AGENCY FUND5783711,6133300 Investment Earnings00$578$371 $1,613$0TOTAL - 600 REDEVELOPMENT AGENCY FUND$0660DEBT SERVICE - SUCCESSORY AGENCY102,377 88,504 52,0693300 Investment Earnings0054108004480 Other City Funds Reimbursement003,122,996 5,561,843 5,062,9755000 Transfers In4,504,9312,563,000$3,225,914 $5,650,347 $5,115,844$2,563,000TOTAL - 660 DEBT SERVICE - SUCCESSORY AGENCY$4,504,931700MISCELLANEOUS CIP FUNDS209,075 366,650 185,6253060 Residential Construction Tax325,505325,505310,082 265,347 479,3433300 Investment Earnings002,614,066 1,072,237 3,203,6134370 Park Acquisition & Develop Fee700,000700,0000 150,000 445,5084480 Other City Funds Reimbursement87,6090383,900 302,779 1,133,8375000 Transfers In790,910460,3962292017-05-23 Agenda Packet Page 458 SCHEDULE OF REVENUESACTUALFUND/ACCOUNTFY 2013-14ACTUALFY 2014-15ACTUALFY 2015-16ADOPTEDFY 2016-17ESTIMATEDFY 2017-18$3,517,123 $2,157,013 $5,447,926$1,485,901TOTAL - 700 MISCELLANEOUS CIP FUNDS$1,904,024730OTHER TRANSPORTATION PROGRAMS5,0855031,2693300 Investment Earnings00362,2841,17803400 State Grants001,232,550 2,925,033 3,256,8713500 Federal Grants6,637,6478,002,20300 44,0033600 Other Agency Grants65,00065,000085804450 CIP Reimbursements00300,000004900 Other Revenue00$1,899,919 $2,927,572 $3,302,143$8,067,203TOTAL - 730 OTHER TRANSPORTATION PROGRAMS$6,702,647GRAND TOTAL ALL FUNDS$355,946,806 $295,666,186 $380,739,917$282,521,883$363,826,6442302017-05-23 Agenda Packet Page 459 FY2018 City of Chula Vista Proposed Budget FUND BALANCE PROJECTIONS 2312017-05-23 Agenda Packet Page 460 2322017-05-23 Agenda Packet Page 461 FUND BALANCE PROJECTIONSEST AVAIL ESTIMATED REVENUES/ TFRS INESTIMATED TOTAL RESOURCESADOPTED CIP/NON-CIP FUNDDESCRIPTIONESTIMATED OP EXP/ TFRS OUTFUND BAL06/30/2017EST AVAILFUND BAL06/30/2018GENERAL FUND17,855,389(166,568,559)166,587,259 184,442,648100 General Fund17,855,389(18,700)17,855,389 (166,568,559)166,587,259 184,442,64817,855,389TOTAL - GENERAL FUND(18,700)HOUSINGHousing Funds3,468,706(2,094,983)1,094,983 4,563,689313 CV Housing Authority2,468,706TOTAL3,468,706 (2,094,983)1,094,983 4,563,6892,468,7063,468,706 (2,094,983)1,094,983 4,563,6892,468,706TOTAL - HOUSINGSUCCESSOR AGENCYSuccessor Agency660,794(3,198,000)4,970,859 5,631,653318 Redv Obligation Retirement Fnd2,433,6536,529,401(4,627,583)415,000 6,944,401319 Housing - SA2,316,8180654 RDA 2008 TARBS ProjFund - SA 01,847(1,848)1,847661 05 ERAF - SA(1)1,859(1,861)1,859662 06 ERAF - SA(2)6,5256,525663 06 TABs Series A - SA6,5252,2702,270664 06 TABs Series B - SA2,270(12,513)(12,513)665 08 TABs - SA(12,513)(27,089,140)(1,178,000)2,563,000 (24,526,140)666 2016 TARBs(25,704,140)(10,956,392)(350,000)(10,956,392)692 Successor Agency Long-term Debt(11,306,392)TOTAL(30,855,349) (9,357,292)7,948,859 (22,906,490)(32,263,782)(30,855,349) (9,357,292)7,948,859 (22,906,490)(32,263,782)TOTAL - SUCCESSOR AGENCYENTERPRISE FUNDS0(132,580)132,580 132,580406 Chula Vista Muni Golf Course00(344,543)359,263 359,263409 CV Elite Athlete Training Center14,7202332017-05-23 Agenda Packet Page 462 FUND BALANCE PROJECTIONSEST AVAIL ESTIMATED REVENUES/ TFRS INESTIMATED TOTAL RESOURCESADOPTED CIP/NON-CIP FUNDDESCRIPTIONESTIMATED OP EXP/ TFRS OUTFUND BAL06/30/2017EST AVAILFUND BAL06/30/2018Transit Funds183,249183,249403 Transit Capital Projects183,249TOTAL183,249 183,249183,249Sewer Funds2,053,5572,053,557411 Sewer Income2,053,55756,695,532(350,000)1,450,000 58,145,532413 Trunk Sewer Capital Reserve57,795,53227,263,986(37,836,509)31,431,199 58,695,185414 Sewer Service Revenue20,828,676(30,000)6,098,394 (150,000)1,456,726 7,555,120428 Sewer Facility Replacement6,105,120(1,300,000)7,000 7,000431 Tel Cyn Sewer Basin Plan DIF7,0002,371,338(12,000)20,000 2,391,338432 Poggi Cyn Sewer Basin DIF2,379,338(8,772)(370,000)380,000 371,228433 Salt Creek Sewer Basin DIF1,228TOTAL94,481,035 (38,718,509)34,737,925 129,218,96089,170,451(1,330,000)(496,662) (9,838,789)9,839,689 9,343,027408 Development Services Fund(495,762)94,167,622(49,034,421)45,069,457 139,237,07988,872,658TOTAL - ENTERPRISE FUNDS(1,330,000)SPECIAL REVENUE FUNDSTransportation Funds667,300(4,259,428)5,537,543 6,204,843221 Gas Tax327,415(1,618,000)1,028,406 (25,000)200,000 1,228,406225 Traffic Signal865,240(338,166)713,612 6,087,000 6,800,612227 Transportation Sales Tax0(6,800,612)TOTAL2,409,318 (4,284,428)11,824,543 14,233,8611,192,655(8,756,778)Parking Funds1,030,189(522,270)590,000 1,620,189241 Parking Meter1,097,91942,32442,324243 Town Centre I-Parking District42,324TOTAL1,072,513 (522,270)590,000 1,662,5131,140,2432342017-05-23 Agenda Packet Page 463 FUND BALANCE PROJECTIONSEST AVAIL ESTIMATED REVENUES/ TFRS INESTIMATED TOTAL RESOURCESADOPTED CIP/NON-CIP FUNDDESCRIPTIONESTIMATED OP EXP/ TFRS OUTFUND BAL06/30/2017EST AVAILFUND BAL06/30/2018Public Safety Funds123,271(437,640)437,640 560,911245 Traffic Safety123,271371,478(589,227)401,014 772,492251 Suppl Law Enforcement Services183,2650(6,292,004)6,292,004 6,292,004252 Police Department Grants078,500(82,350)40,000 118,500253 Inmate Welfare Fund36,15011,793(98,415)98,415 110,208254 Local Law Enf Block Grant11,793151,537(354,952)210,000 361,537256 Asset Seizure6,585TOTAL736,579 (7,854,588)7,479,073 8,215,652361,064Library and Cultural Arts Funds22,66422,664261 California Library Service Act22,6641,8991,899262 Public Library Act1,89911265 CA Dept of Education Sect. 321111,879(1,600)11,879267 McCandliss Cultural Arts10,279TOTAL36,443 (1,600)36,44334,843Sundry Grant Funds1,231(100,000)100,000 101,231269 Other Grant Fund1,2310(484,079)484,079 484,079272 Federal Grants Fund00 350,000 350,000273 State Grants Fund0(350,000)6,943 (22,333)22,333 29,276274 ARRA Fund6,943TOTAL8,174 (606,412)956,412 964,5868,174(350,000)Conservation Funds65,822(477,701)477,701 543,523281 Waste Management & Recycling65,822831,385(2,007,483)1,402,005 2,233,390282 Environmental Services Fund225,90728,956(1,635,595)1,635,595 1,664,551285 Energy Conservation28,956TOTAL926,163 (4,120,779)3,515,301 4,441,464320,6852352017-05-23 Agenda Packet Page 464 FUND BALANCE PROJECTIONSEST AVAIL ESTIMATED REVENUES/ TFRS INESTIMATED TOTAL RESOURCESADOPTED CIP/NON-CIP FUNDDESCRIPTIONESTIMATED OP EXP/ TFRS OUTFUND BAL06/30/2017EST AVAILFUND BAL06/30/2018Community Development Block Grant (1,086)(51,100)51,100 50,014311 CDBG Housing Program(1,086)1,2631,263314 Emergency Shelter Grant Prog1,26316,860,405(289,500)209,500 17,069,905321 Home Program16,780,4051,0001,000325 CDBG Program - Income Projects1,000365,762(776,200)826,300 1,192,062333 Comm Dev Block Grant365,762(50,100)TOTAL17,227,344 (1,116,800)1,086,900 18,314,24417,147,344(50,100)Open Space District Funds229,512(152,496)169,681 399,193342 CFD 11-M RHR McMillin246,697400,077(365,547)365,547 765,624343 CFD 12-M Vlg7400,077612,678(232,968)340,796 953,474344 CFD 13-M Vlg2720,506766,504(497,287)503,247 1,269,751345 CFD 12M - OR Village 7772,464453,828(158,124)224,334 678,162346 CFD 14M - A - EUC Millenia520,0380(61,503)67,823 67,823347 CFD 14M - B - EUC Millenia Parks6,3200(5,000)657,277 657,277348 CFD 18M Village 3 Otay Ranch652,2770(59,616)130,546 130,546349 CFD 19M Freeway Commercial 270,93025,70725,707351 Town Centre Landscaping Dist I25,70746,091(12,500)12,500 58,591352 Bay Blvd Landscaping Dist46,091344,568(332,054)351,035 695,603353 Eastlake Maintenance Dist #1363,5491,880,048(3,069,226)3,083,266 4,963,314354-376 Open Space District #1 - #311,894,088549,857(685,373)686,876 1,236,733378 CFD 07M-Eastlk II Woods, Vista551,3602,207,677(1,019,508)1,317,286 3,524,963379 CFD 08M-Vlg 6 McM & Oty Ranch2,505,4551,414,124(1,005,296)1,122,910 2,537,034380 CFD 09M OR Vlg II1,531,7381,045,665(792,483)887,430 1,933,095382 CFD 99-2 Otay Ranch Vlg 1 We1,140,612277,606277,606383 Town Ctr Business Imprv Distr277,606552,977(602,500)743,651 1,296,628386 Otay Ranch Acquisition Dist694,128926,582(915,889)998,072 1,924,654387 CFD 98-3 Sunbow 21,008,7654,304,132(2,401,080)2,851,127 7,155,259388 Comm Facility 97-1 (Otay Rnch)4,754,179164,260164,260389 Otay Ranch Village 1,2,6,7,12164,260TOTAL16,201,893 (12,368,450)14,513,404 30,715,29718,346,8472362017-05-23 Agenda Packet Page 465 FUND BALANCE PROJECTIONSEST AVAIL ESTIMATED REVENUES/ TFRS INESTIMATED TOTAL RESOURCESADOPTED CIP/NON-CIP FUNDDESCRIPTIONESTIMATED OP EXP/ TFRS OUTFUND BAL06/30/2017EST AVAILFUND BAL06/30/2018Miscellaneous116,129116,129223 TUT Common Fund116,129218,804(65,000)65,000 283,804270 Mobile Home Rent Review Program218,8041,249,658(600,000)600,000 1,849,658316 Public Educational & Govt. Fee1,249,658TOTAL1,584,591 (665,000)665,000 2,249,5911,584,5910 (8,497,339)60,559,992 60,559,992201 2016 Measure P Sales Tax Fund0(52,062,653)329,766(348,940)584,250 914,016301 Storm Drain Revenue565,07640,532,784(40,386,606)101,774,875 142,307,65940,701,522TOTAL - SPECIAL REVENUE FUNDS(61,219,531)INTERNAL SERVICE FUNDS261,260(1,556,923)1,556,923 1,818,183234 Advance Life Support Fund261,2605,000(5,000)5,000235 Legislative Council Fund00(1,204,078)1,284,078 1,284,078341 Public Liability Trust80,000589,133(3,504,543)3,504,543 4,093,676391 Central Garage589,133263,004263,004392 Equipment Replacement263,0042,6502,650393 Technology Replacement2,6500(4,529,123)5,029,123 5,029,123398 Workers Compensation500,0001,121,047(10,799,667)11,374,667 12,495,7141,696,047TOTAL - INTERNAL SERVICE FUNDS2372017-05-23 Agenda Packet Page 466 FUND BALANCE PROJECTIONSEST AVAIL ESTIMATED REVENUES/ TFRS INESTIMATED TOTAL RESOURCESADOPTED CIP/NON-CIP FUNDDESCRIPTIONESTIMATED OP EXP/ TFRS OUTFUND BAL06/30/2017EST AVAILFUND BAL06/30/2018CAPITAL PROJECTS FUNDSAssessment District Funds86,170(2,500)86,170507 Otay Valley Rd AD 90-2 Improv83,6706,0336,033508 AD97-26,033946,884946,884511 Otay Vly Rd Fee Recovery Dist946,8841,164,4741,164,474512 EL Greens II AD 94-1 Improv1,164,47422,53222,532515 Twin Oaks Ave AD 96-1 Improv22,5324,4794,479516 Oxford St AD 97-1 Improv4,47931,600(31,600)31,600517 AD2004-1 Dixon Drive035,190(35,190)35,190518 AD2005-1 Tobias Drive0TOTAL2,297,362 (69,290)2,297,3622,228,072Development Impact Fee Funds3,325,207(10,000)3,325,207542 Tel Cyn Drainage Plan DIF3,315,2075,530,243(6,843,408)5,300,000 10,830,243567-582 DIF - Public Facilities3,986,8351,270,439(30,000)100,000 1,370,439587 DIF-OR Village Pedestrian Ramp1,340,4393,117,213(30,000)5,000 3,122,213588 OR Vlg11 Pedestrian Bridge DIF3,092,21320,996,898(450,800)2,535,000 23,531,898591 Transportation DIF19,710,765(3,370,333)172,149 (60,000)91,600 263,749593 Western Transportation DIF Fund203,749347,107(50,000)40,000 387,107718 EUC Millenia Ped Bridge DIF337,107TOTAL34,759,256 (7,474,208)8,071,600 42,830,85631,986,315(3,370,333)Misc Capital Project Funds(397,200)(397,200)713 Capital Improvement Projects(397,200)38,948,230(85,000)650,000 39,598,230715 PAD Fund - Eastern39,513,23081,191(75,000)100,000 181,191716 PAD Fund - Western106,191288,139(668,278)735,901 1,024,040717 Resid. Construction/Conversion355,762TOTAL38,920,360 (828,278)1,485,901 40,406,26139,577,9832382017-05-23 Agenda Packet Page 467 FUND BALANCE PROJECTIONSEST AVAIL ESTIMATED REVENUES/ TFRS INESTIMATED TOTAL RESOURCESADOPTED CIP/NON-CIP FUNDDESCRIPTIONESTIMATED OP EXP/ TFRS OUTFUND BAL06/30/2017EST AVAILFUND BAL06/30/2018Other Transportation Funds0(65,000)65,000 65,000723 Bicycle Facilities00735 Transportation Partnership00 8,002,203 8,002,203736 Other Transportation Program0(8,002,203)777 777741 Prop 1B Hwy Safety777TOTAL777 (65,000)8,067,203 8,067,980777(8,002,203)75,977,755 (8,436,776)17,624,704 93,602,45973,793,147TOTAL - CAPITAL PROJECTS FUNDS(11,372,536)DEBT SERVICE FUNDS1,193,350(288,000)288,000 1,481,350477 2016 COP1,193,3504,390,270(2,149,000)2,149,000 6,539,270478 2016 LRRB COP Refinance4,390,270Debt Service - City Funds0(762,200)762,200 762,200442 CDBG Section 108 Loan0(19,234,092)(1,385,000)1,385,000 (17,849,092)451 Long-term Advances DSF - City(19,234,092)111,142(594,540)594,540 705,682452 KS Fire Equipment Capital Lease111,142119,570(638,400)638,400 757,970453 CES Loan Repayment119,570TOTAL(19,003,380) (3,380,140)3,380,140 (15,623,240)(19,003,380)Debt Service - CV Financing Authority2929472 2004 COP Civ Ctr Proj Phase I298,5698,569473 2006 COP Civ Ctr Proj Phase 28,56926,37826,378474 2010 Refunding COP26,3783,019,606(3,603,500)3,603,500 6,623,106475 2014 Refunding COP3,019,6062,216,978(2,931,200)2,931,200 5,148,178476 2015 Refunding COP2,216,978TOTAL5,271,560 (6,534,700)6,534,700 11,806,2605,271,560(8,148,200) (12,351,840)12,351,840 4,203,640(8,148,200)TOTAL - DEBT SERVICE FUNDSGRAND TOTAL ALL FUNDS194,119,754(299,030,144)363,826,644 557,946,398184,975,487(73,940,767)2392017-05-23 Agenda Packet Page 468 2402017-05-23 Agenda Packet Page 469 FY2018 City of Chula Vista Proposed Budget SCHEDULE OF INTERFUND TRANSFERS 2412017-05-23 Agenda Packet Page 470 2422017-05-23 Agenda Packet Page 471 FUND/ACCOUNTDESCRIPTIONFY 2017-18 Proposed100 GENERAL FUND221 Gas TaxReimbursement for street related staff time, materials, and utilities4,259,428$ 234 Advanced Life Support FundStaff time reimbursement972,453$ 245 Traffic SafetyReimbursement for Police fleet maintenance costs399,140$ 282 Environmental ServicesReimbursement for allocated overhead costs107,585$ 313 CV Housing Authority FundReimbursement for allocated overhead costs181,572$ 406 Chula Vista Municipal Golf CourseCity's share of golf course operational revenues132,580$ 408 Development ServicesReimbursement for allocated overhead costs1,796,648$ 414 Sewer Service RevenueReimbursement for Sewer related staff time and materials3,057,097$ 451 Long‐term Advances DSF ‐ CityInterfund loan payment 300,000$ TOTAL TRANSFERS IN ‐ 100 GENERAL FUND11,206,503$ 201 MEASURE P SALES TAX FUND100 General FundTransfer Measure P Sales Tax from General Fund16,320,000$ TOTAL TRANSFERS IN ‐ 20116,320,000$ 252 POLICE DEPARTMENT GRANTS100 General FundGeneral Fund support of grant funded positions76,466$ 251 Supp Law Enforcement Serv FundFunding for personnel costs21,513$ TOTAL TRANSFERS IN ‐ 25297,979$ 254 LOCAL LAW ENFORCEMENT BLOCK GRANT100 General FundGeneral Fund support of grant funded positions52,979$ TOTAL TRANSFERS IN ‐ 25452,979$ 269 Other Grant Funds100 General FundGeneral Fund match for grant50,000$ TOTAL TRANSFERS IN ‐ 26950,000$ 272 FEDERAL GRANTS FUND100 General FundGeneral Fund match for grant62,326$ SCHEDULE OF INTERFUND TRANSFERS IN2432017-05-23 Agenda Packet Page 472 FUND/ACCOUNTDESCRIPTIONFY 2017-18 ProposedSCHEDULE OF INTERFUND TRANSFERS INTOTAL TRANSFERS IN ‐ 27262,326$ 318 Redevelopment Obligation Retirement661 05 ERAF ‐ SA Transfer to close out 05 ERAF1,848$ 662 06 ERAF ‐ SA Transfer to close out 06 ERAF1,861$ TOTAL TRANSFERS IN ‐ 3183,709$ 333 Community Development Block Grant517 AD2004‐1 Dixon DrProject cost reimbursement from Assessment District31,600$ TOTAL TRANSFERS IN ‐ 33331,600$ 341 PUBLIC LIABILITY TRUST100 General FundGeneral Fund transfer for public liability expenses1,204,078$ 414 Sewer Service RevenueSewer Fund transfer for public liability expenses80,000$ TOTAL TRANSFERS IN ‐ 3411,284,078$ 391 Central Garage100 General FundStaff time reimbursement85,267$ TOTAL TRANSFERS IN ‐ 39185,267$ 408 DEVELOPMENT SERVICES FUND100 General FundStaff time and Accela reimbursement374,529$ 100 General FundPermit subsidy400,000$ 313 CV Housing Authority FundReimbursement for allocated overhead costs73,125$ 414 Sewer Service RevenueStaff time reimbursement16,137$ TOTAL TRANSFERS IN ‐ 408863,791$ 409 CV Elite Athlete Center100 General FundTrasnfer cell site tower lease revenue20,000$ TOTAL TRANSFERS IN ‐ 40920,000$ 2442017-05-23 Agenda Packet Page 473 FUND/ACCOUNTDESCRIPTIONFY 2017-18 ProposedSCHEDULE OF INTERFUND TRANSFERS IN413 TRUNK SEWER CAPITAL RESERVE433 Salt Creek Sewer Basin DIFInterfund loan payment 200,000$ TOTAL TRANSFERS IN ‐ 413200,000$ 414 SEWER SERVICE REVENUE428 Sewer Facility ReplacementStaff time reimbursement150,000$ TOTAL TRANSFERS IN ‐ 414150,000$ 442 CDBG SECTION 108 LOAN333 Community Development Block GrantDebt service payment ‐ Section 108 loan762,200$ TOTAL TRANSFERS IN ‐ 442762,200$ 451 LONG‐TERM ADVANCES DSF ‐ CITY572 PFDIF ‐ Civic Center ExpansionInterfund loan payment 300,000$ 576 Fire Suppression Sytem ExpansionInterfund loan payment 1,035,000$ 716 Western ‐ Park Acquisition & DevInterfund loan payment 50,000$ TOTAL TRANSFERS IN ‐ 4511,385,000$ 452 EQUIPMENT LEASE FUND100 General FundDebt service payment ‐ Mobile data computers & QECB311,140$ 201 Measure P Sales TaxDebt service payment ‐ Fire equipment244,400$ TOTAL TRANSFERS IN ‐ 452555,540$ 453 ENERGY LOAN REPAYMENTS100 General FundDebt service payment ‐ California Energy Commission loan509,400$ TOTAL TRANSFERS IN ‐ 453509,400$ 475 2014 REFUNDING COP 100 General FundDebt Service Payment ‐ 2002 COP Refunding ‐ Police Facility2,005,350$ 573 Police Facilities RemodelDebt Service Payment ‐ 2002 COP Refunding ‐ Police Facility1,598,150$ TOTAL TRANSFERS IN ‐ 4753,603,500$ 2452017-05-23 Agenda Packet Page 474 FUND/ACCOUNTDESCRIPTIONFY 2017-18 ProposedSCHEDULE OF INTERFUND TRANSFERS IN476 2015 REFUNDING COP100 General FundDebt Service Payment425,747$ 572 PFDIF ‐ Civic Center ExpansionDebt Service Payment1,837,175$ 717 Resid. Construction/ConversionDebt Service Payment ‐ 2015 Refunding COP668,278$ TOTAL TRANSFERS IN ‐ 4762,931,200$ 477 2016 REF COP CIVIC CENTER/NATURE CNTR100 General FundDebt service payment 58,232$ 572 PFDIF ‐ Civic Center ExpansionDebt service payment 229,768$ TOTAL TRANSFERS IN ‐ 477288,000$ 478 2016 LRRB PFDIF/COP100 General FundDebt service payment 611,785$ 572 PFDIF ‐ Civic Center ExpansionDebt service payment 808,249$ 574 Corporation Yard RelocationDebt service payment 728,966$ TOTAL TRANSFERS IN ‐ 4782,149,000$ 591 TRANSPORTATION DIF451 Long‐term Advances DSF ‐ CityInterfund loan payment1,035,000$ TOTAL TRANSFERS IN ‐ 5911,035,000$ 666 2016 TARBS318 Redevelopment Obligation Retirement FundDebt service payments2,563,000$ TOTAL TRANSFERS IN ‐ 6662,563,000$ 715 PARK ACQUISITION & DEVELOPMENT451 Long‐term Advances DSF ‐ CityInterfund loan payment50,000$ TOTAL TRANSFERS IN ‐ 71550,000$ 717 RESID. CONSTRUCTION/CONVERSION2462017-05-23 Agenda Packet Page 475 FUND/ACCOUNTDESCRIPTIONFY 2017-18 ProposedSCHEDULE OF INTERFUND TRANSFERS IN100 General FundGeneral Fund transfer for debt service expense375,206$ 100 General FundProject cost reimbursement from Assessment District35,190$ TOTAL TRANSFERS IN ‐ 717410,396$ GRAND TOTAL ALL FUNDS46,670,468$ 2472017-05-23 Agenda Packet Page 476 FUND/ACCOUNTDESCRIPTIONFY 2017-18 Proposed100 GENERAL FUND201 Measure P Sales TaxTransfer Measure P Sales Tax from General Fund16,320,000$ 252 Police Department GrantsGeneral Fund support of grant funded positions76,466$ 254 Local Law Enforcement Block GrantGeneral Fund support of grant funded positions52,979$ 269 Other Grant FundGeneral Fund match for grant50,000$ 272 Federal Grants FundGeneral Fund match for grant62,326$ 341 Public Liability TrustGeneral Fund transfer for public liability expenses1,204,078$ 391 Central GarageStaff time reimbursement85,267$ 408 Development ServicesStaff time reimbursement774,529$ 409 CV Elite Athlete CenterTrasnfer cell site tower lease revenue20,000$ 452 Equipment Lease FundDebt service payment ‐ Mobile data computers & QECB311,140$ 453 Energy Loan RepaymentsDebt service payment ‐ California Energy Commission loan509,400$ 475 2014 Refunding COPDebt Service Payment ‐ 2002 COP Refunding ‐ Police Facility2,005,350$ 476 2015 Refunding COPDebt Service Payment ‐ 2015 Refunding COP425,747$ 477 2016 Refunding COPDebt Service 58,232$ 478 2016 Refunding COPDebt Service 611,785$ 717 Resid. Construction/ConversionGeneral Fund transfer for debt service expense375,206$ TOTAL TRANSFERS OUT ‐ 10022,942,505$ 201 MEASURE P SALES TAX452 Equipment Lease FundDebt service payment ‐ Fire equipment244,400$ TOTAL TRANSFERS OUT ‐ 201244,400$ 221 GAS TAX FUND100 General FundReimbursement for street related staff time, materials, and utilities4,259,428$ TOTAL TRANSFERS OUT ‐ 2214,259,428$ 234 ADVANCED LIFE SUPPORT FUND100 General FundStaff time reimbursement972,453$ TOTAL TRANSFERS OUT ‐ 234972,453$ SCHEDULE OF INTERFUND TRANSFERS OUT2482017-05-23 Agenda Packet Page 477 FUND/ACCOUNTDESCRIPTIONFY 2017-18 ProposedSCHEDULE OF INTERFUND TRANSFERS OUT245 TRAFFIC SAFETY100 General FundReimbursement for Police fleet maintenance costs399,140$ TOTAL TRANSFERS OUT ‐ 245399,140$ 251 SUPP LAW ENFORECEMENT SERV FUND252 Police Department GrantsFunding for personnel costs21,513$ TOTAL TRANSFERS OUT ‐ 25121,513$ 282 ENVIRONMENTAL SERVICES100 General FundReimbursement for allocated overhead costs107,585$ TOTAL TRANSFERS OUT ‐ 282107,585$ 313 CV HOUSING AUTHORITY100 General FundReimbursement for allocated overhead costs181,572$ 408 Development ServicesReimbursement for allocated overhead costs73,125$ TOTAL TRANSFERS OUT ‐ 313254,697$ 318 Redevelopment Obligation Retirement Fund666 2016 TARBsDebt service payment2,563,000$ TOTAL TRANSFERS OUT ‐ 3182,563,000$ 333 COMM DEV BLOCK GRANT FUND442 CDBG Section 108 LoanProject cost reimbursement from AD762,200$ TOTAL TRANSFERS OUT ‐ 333762,200$ 406 CV MUNICPAL GOLF COURSE100 General FundCity's share of golf course operational revenues132,580$ TOTAL TRANSFERS OUT ‐ 406132,580$ 408 DEVELOPMENT SERVICES100 General FundReimbursement for allocated overhead costs1,796,648$ 2492017-05-23 Agenda Packet Page 478 FUND/ACCOUNTDESCRIPTIONFY 2017-18 ProposedSCHEDULE OF INTERFUND TRANSFERS OUTTOTAL TRANSFERS OUT ‐ 4081,796,648$ 414 SEWER SERVICE REVENUE100 General FundReimbursement for Sewer related staff time and materials3,057,097$ 341 Public Liability TrustSewer Fund transfer for public liability expenses80,000$ 408 Development ServicesStaff time reimbursement16,137$ TOTAL TRANSFERS OUT ‐ 4143,153,234$ 428 SEWER FACILITY REPLACEMENT414 Sewer Service RevenueStaff time reimbursement150,000$ TOTAL TRANSFERS OUT ‐ 428150,000$ 433 SALT CREEK SEWER BASIN DIF413 Trunk Sewer Capital ReserveInterfund loan payment ‐ Trunk Sewer Capl Res‐FY00‐01 Budget Reso200,000$ TOTAL TRANSFERS OUT ‐ 433200,000$ 451 LONG TERM ADVANCES DSF ‐ CITY100 General FundInterfund loan payment300,000$ 591 Transportation DIFInterfund loan payment1,035,000$ 715 Park Acquisition & DevelopmentInterfund loan payment50,000$ TOTAL TRANSFERS OUT ‐ 4511,385,000$ 517 AD2001‐1 DIXON DRIVE 333 Community Development Block GrantProject cost reimbursement from Assessment District31,600$ TOTAL TRANSFERS OUT ‐ 51731,600$ 518 AD2005‐1 TOBIAS DRIVE717 Resid. Construction/ConversionProject cost reimbursement from Assessment District35,190$ TOTAL TRANSFERS OUT ‐ 51835,190$ 572 PFDIF ‐ CIVIC CENTER EXPANSION2502017-05-23 Agenda Packet Page 479 FUND/ACCOUNTDESCRIPTIONFY 2017-18 ProposedSCHEDULE OF INTERFUND TRANSFERS OUT451 Long‐term Advances DSF ‐ CityInterfund loan payment 300,000$ 476 2015 Refunding COPDebt Service Payment ‐ 2015 Refunding COP1,837,175$ 477 2016 Ref COP Civic Center/Nature CenterDebt Service Payment229,768$ 478 2016 LRRB PFDIF/COPDebt Service Payment808,249$ TOTAL TRANSFERS OUT ‐ 5723,175,192$ 573 POLICE FACILITIES REMODEL475 2014 Refunding COPDebt Service Payment ‐ 2002 COP Refunding ‐ Police Facility1,598,150$ TOTAL TRANSFERS OUT ‐ 5731,598,150$ 574 CORP YARD RELOCATION 478 2016 LRRB PFDIF/COPDebt Service Payment728,966$ TOTAL TRANSFERS OUT ‐ 574728,966$ 576 FIRE SUPPRESSION SYS EXPANSION451 Long‐term Advances DSF ‐ CityInterfund loan payment 1,035,000$ TOTAL TRANSFERS OUT ‐ 5761,035,000$ 661 05 ERAF ‐ SA 318 Redevelopment Obligation Retirement FundTransfer to close out 05 ERAF1,848$ TOTAL TRANSFERS OUT ‐ 6611,848$ 662 06 ERAF ‐ SA 318 Redevelopment Obligation Retirement FundTransfer to close out 06 ERAF1,861$ TOTAL TRANSFERS OUT ‐ 6621,861$ 716 WESTERN ‐ PARK ACQUISITION & DEV451 Long‐term Advances DSF ‐ CityInterfund loan payment 50,000$ TOTAL TRANSFERS OUT ‐ 71650,000$ 2512017-05-23 Agenda Packet Page 480 FUND/ACCOUNTDESCRIPTIONFY 2017-18 ProposedSCHEDULE OF INTERFUND TRANSFERS OUT717 RESID. CONSTRUCTION/CONVERSION476 2015 Refunding COPDebt Service Payment ‐ 2015 Refunding COP668,278$ TOTAL TRANSFERS OUT ‐ 717668,278$ GRAND TOTAL ALL FUNDS46,670,468$ 2522017-05-23 Agenda Packet Page 481 FY2018 City of Chula Vista Proposed Budget AUTHORIZED POSITIONS BY DEPARTMENT 2532017-05-23 Agenda Packet Page 482 2542017-05-23 Agenda Packet Page 483 ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 CITY COUNCIL ADMIN SECRETARY (MAYOR,ATWILL)1.00 - 1.00- CHIEF OF STAFF 1.00 - 1.00- CONSTITUENT SERVICES REPRESENTATIVE - 1.00 1.00- COUNCILPERSON 4.00 - 4.00- EXECUTIVE SECRETARY 1.00 - 1.00- MAYOR 1.00 - 1.00- OFFICE SPECIALIST (MYR/@WILL)1.00 (1.00)- - POLICY AIDE 1.00 - 1.00- SR COUNCIL ASST 4.00 - 4.00- 14.00 - CITY COUNCIL TOTAL 14.00- CITY CLERK ASSISTANT CITY CLERK 1.00 - 1.00- CITY CLERK 1.00 - 1.00- DEPUTY CITY CLERK I 1.00 - 1.00- DEPUTY CITY CLERK II 1.00 - 1.00- RECORDS MANAGER 1.00 - 1.00- SR RECORDS SPECIALIST 1.00 - 1.00- 6.00 - CITY CLERK TOTAL 6.00- CITY ATTORNEY ASST CITY ATTORNEY 1.00 - 1.00- CITY ATTORNEY (ELECTED) 1.00 - 1.00- DEPUTY CITY ATTORNEY II 3.00 - 3.00- DEPUTY CITY ATTORNEY III 3.00 - 3.00- LAW OFFICE MANAGER 1.00 - 1.00- LEGAL ASSISTANT 2.00 - 2.00- SR ASST CITY ATTORNEY 1.00 - 1.00- SR LEGAL ASSISTANT 1.00 - 1.00- SR RISK MANAGEMENT SPECIALIST 1.00 - 1.00- 14.00 - CITY ATTORNEY TOTAL 14.00- ADMINISTRATION ASST CITY MANAGER/ADMIN 1.00 - 1.00- CITY MANAGER 1.00 - 1.00- DEPUTY CITY MANAGER 2.00 - 2.00- EXECUTIVE SECRETARY 1.00 - 1.00- MARKETING & COMMUNICATIONS MGR 1.00 - 1.00- PUBLIC INFORMATION SPECIALIST 1.00 - 1.00- 2552017-05-23 Agenda Packet Page 484 ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 SPECIAL EVENTS COORDINATOR 1.00 - 1.00- SR GRAPHIC DESIGNER 1.00 - 1.00- SR WEBMASTER 1.00 - 1.00- 10.00 - ADMINISTRATION TOTAL 10.00- INFORMATION TECHNOLOGY SRVCS DIR OF INFO TECH SVCS 1.00 - 1.00- GIS MANAGER 1.00 - 1.00- GIS SPECIALIST 2.00 - 2.00- INFO TECH SUPPORT SPECIALIST 3.00 (2.00)1.00- INFO TECHNOLOGY TECHNICIAN - 2.00 2.00- INFORMATION TECHNOLOGY MANAGER 1.00 - 1.00- OPS&TELECOM MGR 1.00 - 1.00- SR APPLICATION SUPPORT SPEC 1.00 - 1.00- SR INFO TECH SUPPORT SPEC 4.00 - 4.00- SR PROGRAMMER ANALYST 2.00 - 2.00- TELECOMMUNICATIONS SPECIALIST 1.00 - 1.00- 17.00 - INFORMATION TECHNOLOGY SRVCS TOTA 17.00- HUMAN RESOURCES BENEFITS MANAGER 1.00 - 1.00- DIR OF HUMAN RESOURCES 1.00 - 1.00- HR ANALYST 1.00 - 1.00- HR TECHNICIAN 3.00 - 3.00- HUMAN RESOURCES OPS MANAGER 1.00 - 1.00- PERFORMANCE & ORG DEV MGR 1.00 - 1.00- SR FISCAL OFFICE SPECIALIST 2.00 - 2.00- SR HR ANALYST 4.00 - 4.00- SR RISK MANAGEMENT SPECIALIST 2.00 - 2.00- 16.00 - HUMAN RESOURCES TOTAL 16.00- FINANCE ACCOUNTANT 1.00 - 1.00- ACCOUNTING ASSISTANT 6.00 - 6.00- ACCOUNTING TECHNICIAN 4.00 - 4.00- ACCOUNTS PAYABLE SUPERVISOR 1.00 - 1.00- ASST DIR OF FINANCE 1.00 - 1.00- BUDGET & ANALYSIS MANAGER 1.00 - 1.00- BUSINESS LICENSE REP 1.00 - 1.00- COLLECTIONS SUPERVISOR 1.00 - 1.00- DIRECTOR OF FINANCE 1.00 - 1.00- 2562017-05-23 Agenda Packet Page 485 ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FINANCE & PURCHASING MGR 1.00 - 1.00- FISCAL & MANAGEMENT ANALYST 4.00 (1.00)3.00- FISCAL DEBT MGMT ANALYST - - 1.001.00 FISCAL OFFICE SPECIALIST 1.00 - 1.00- PRINCIPAL MANAGEMENT ANALYST 1.00 - - (1.00) PROCUREMENT SERVICES ANALYST - 1.00 1.00- PROCUREMENT SPECIALIST 1.00 - 1.00- SR ACCOUNTANT 2.00 - 2.00- SR MANAGEMENT ANALYST - 1.00 1.00- SR PROCUREMENT SPECIALIST 1.00 (1.00)- - 28.00 - FINANCE TOTAL 28.00- ANIMAL CARE FACILITY ANIMAL ADOPTION COUNSELOR 1.00 - 1.00- ANIMAL CARE FAC ADMINISTRATOR 1.00 - 1.00- ANIMAL CARE SPECIALIST 5.00 1.00 6.00- ANIMAL CARE SUPERVISOR 1.00 - 1.00- ANIMAL CONTROL OFFICER 3.00 (1.00)2.00- ANIMAL CTRL OFFICER SUPERVISOR 1.00 - 1.00- FISCAL OFFICE SPECIALIST 1.00 (1.00)- - OFFICE SPECIALIST 0.50 - 0.50- REGISTERED VETERINARY TECH 3.50 - 3.50- SR ANIMAL CARE SPECIALIST 2.00 - 2.00- SR FISCAL OFFICE SPECIALIST - 1.00 1.00- SR OFFICE SPECIALIST 1.00 - 1.00- VETERINARIAN (PERMITTED) 1.75 - 1.75- 21.75 - ANIMAL CARE FACILITY TOTAL 21.75- ECONOMIC DEVELOPMENT ADMINISTRATIVE SECRETARY - 1.00 1.00- CHIEF SUSTAINABILITY OFFICER 1.00 - 1.00- CONSERVATION SPECIALIST I 4.00 (4.00)- - CONSERVATION SPECIALIST II - 5.00 5.00- CULTURAL ARTS PROGRAM MGR 1.00 - 1.00- DIR OF ECON DEVELOPMENT 1.00 - 1.00- ECONOMIC DEVELOPMENT SPEC I - 1.00 1.00- ENVIRONMENTAL SERVICES MGR 1.00 - 1.00- PROJECT COORDINATOR I 2.00 (2.00)- - REAL PROPERTY MANAGER 1.00 - 1.00- SR CONSERVATION SPECIALIST 1.00 - 1.00- SR ECONOMIC DEV SPECIALIST 1.00 - 1.00- 2572017-05-23 Agenda Packet Page 486 ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 SR FISCAL OFFICE SPECIALIST - - 1.001.00 SR SECRETARY 1.00 (1.00)- - 14.00 - ECONOMIC DEVELOPMENT TOTAL 15.001.00 PLANNING AND BUILDING SERVICES ADMINISTRATIVE TECHNICIAN 1.00 - 1.00- ASSISTANT DIR DEVELOPMENT SVCS 1.00 - 1.00- ASSOCIATE PLANNER 2.00 - 2.00- CODE ENF OFFCR II 6.00 - 6.00- DEVELOPMENT SVCS DEPT DIRECTOR 1.00 - 1.00- DEVELOPMENT SVCS TECH II 1.00 - 1.00- OFFICE SPECIALIST 1.00 - 1.00- PLANNING TECHNICIAN 1.00 - 1.00- PRINCIPAL PLANNER 1.00 - 1.00- SR ADMINISTRATIVE SECRETARY 1.00 - 1.00- SR CODE ENFORCEMENT OFFICER 2.00 - 2.00- SR OFFICE SPECIALIST 1.00 - 1.00- SR PLANNING TECHNICIAN 1.00 - 1.00- 20.00 - PLANNING AND BUILDING SERVICES TOTA 20.00- ENGINEERING AND CAPITAL PROJECT ADMINISTRATIVE SERVICES MANAGR - 1.00 1.00- ASSOC ENGINEER - 11.00 11.00- ASSOC LAND SURVEYOR - 1.00 1.00- DIR OF ENGINEERING - 1.00 1.00- ENGINEERING TECH II - 2.00 2.00- ENVIRONMENTAL HLTH SPECIALIST - 2.00 2.00- MANAGEMENT ANALYST - 1.00 1.00- PRINCIPAL CIVIL ENGINEER - 4.00 4.00- PUBLIC WORKS INSP II - 6.00 6.00- SECRETARY - 1.00 1.00- SR ADMINISTRATIVE SECRETARY - 1.00 1.00- SR CIVIL ENGINEER - 6.00 6.00- SR ENGINEERING TECHNICIAN - 2.00 2.00- SR PUBLIC WORKS INSP - 2.00 2.00- SURVEY TECHNICIAN II - 1.00 1.00- TRAFFIC DEVICES TECH - 3.00 3.00- TRAFFIC DEVICES TECH SUPV - 1.00 1.00- - 46.00ENGINEERING AND CAPITAL PROJECTS TO 46.00- 2582017-05-23 Agenda Packet Page 487 ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 POLICE AUTOMATED FINGERPRINT TECH 2.00 - 2.00- CHIEF OF POLICE 1.00 - 1.00- CIVILIAN BACKGROUND INVESTIGTR 1.00 - 1.00- COMMUNITY SERVICE OFFICER 8.00 - 8.00- CRIME LABORATORY MANAGER 1.00 - 1.00- DETENTION FACILITY MANAGER 1.00 - 1.00- FACILITY & SUPPLY SPECIALIST 1.00 - 1.00- FISCAL OFFICE SPECIALIST 1.00 - 1.00- FORENSICS SPECIALIST 2.00 - 2.00- LATENT PRINT EXAMINER 1.00 - 2.001.00 PARKING ENFORCEMENT OFFICER 1.00 - 1.00- PEACE OFFICER 148.00 5.00 153.00- POLICE ADMIN SVCS ADMINISTRATO 1.00 - 1.00- POLICE AGENT 50.00 - 48.00(2.00) POLICE CAPTAIN 3.00 - 3.00- POLICE COMM SYSTEMS MANAGER 1.00 - 1.00- POLICE DISPATCHER 20.00 - 21.001.00 POLICE DISPATCHER SUPERVISOR 6.00 - 5.00(1.00) POLICE LIEUTENANT 10.00 - 10.00- POLICE RECORDS SPECIALIST 10.50 - 10.50- POLICE SERGEANT 23.00 - 25.002.00 POLICE SERVICES OFFICER 10.00 - 10.00- POLICE SUPPORT SERVICES MGR 1.00 - 1.00- POLICE SVCS OFFICER SUPERVISOR 2.00 - 2.00- POLICE TECHNOLOGY MANAGER - - 1.001.00 POLICE TECHNOLOGY SPECIALIST 1.00 - 1.00- PRINCIPAL MANAGEMENT ANALYST 1.00 - 1.00- PUBLIC SAFETY ANALYST 1.00 - 1.00- SECRETARY 3.00 - 3.00- SR ADMINISTRATIVE SECRETARY 1.00 - 1.00- SR FISCAL OFFICE SPECIALIST 1.00 - 1.00- SR LATENT PRINT EXAMINER 1.00 - 1.00- SR MANAGEMENT ANALYST 1.00 - - (1.00) SR OFFICE SPECIALIST 4.00 - 4.00- SR POLICE RECORDS SPECIALIST 1.00 - 1.00- SR POLICE TECHNOLOGY SPEC 1.00 - - (1.00) SR PROP & EVIDENCE SPECIALIST 2.00 - 2.00- SR PUBLIC SAFETY ANALYST 2.00 - 2.00- SUPV PUBLIC SAFETY ANALYST - - 1.001.00 TRAINING PROGRAMS SPEC 1.00 - 1.00- 2592017-05-23 Agenda Packet Page 488 ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 326.50 5.00POLICE TOTAL 332.501.00 FIRE DEPUTY FIRE CHIEF 1.00 - 1.00- FACILITY & SUPPLY SPECIALIST 1.00 - 1.00- FIRE BATTALION CHIEF (112 HR) 6.00 - 6.00- FIRE BATTALION CHIEF (80 HR) 1.00 - 1.00- FIRE CAPTAIN (112 HR) 33.00 - 33.00- FIRE CAPTAIN (80 HR) 2.00 - 2.00- FIRE CHIEF 1.00 - 1.00- FIRE DIVISION CHIEF 1.00 - 1.00- FIRE ENG (112 HR) 33.00 - 33.00- FIRE ENGINEER (80 HR) 1.00 - 1.00- FIRE INSP/INVEST I 1.00 - 1.00- FIRE INSP/INVEST II 5.00 - 5.00- FIRE PREV ENG/INVEST 1.00 - 1.00- FIRE PREVENTION AIDE 1.00 - 1.00- FIREFIGHTER (112 HR) 9.00 - 9.00- FIREFIGHTER/PARAMEDIC (112 HR)33.00 - 33.00- PRINCIPAL MANAGEMENT ANALYST 1.00 - 1.00- PUBLIC SAFETY ANALYST 1.00 - 1.00- SR ADMINISTRATIVE SECRETARY 1.00 - 1.00- SR FIRE INSP/INVEST 1.00 - 1.00- SR OFFICE SPECIALIST 1.00 - 1.00- TRAINING PROGRAMS SPEC 1.00 - 1.00- 136.00 - FIRE TOTAL 136.00- PUBLIC WORKS ADMINISTRATIVE SECRETARY 1.00 - 1.00- ADMINISTRATIVE SERVICES MANAGR 1.00 (1.00)- - ASSOC ENGINEER 10.00 (10.00)- - ASSOC LAND SURVEYOR 1.00 (1.00)- - ASST DIR OF PUBLIC WORKS 1.00 - 1.00- ASST DIRECTOR OF ENGINEERING 1.00 (1.00)- - ASST ENGINEER 1.00 (1.00)- - BLDG PROJECT MANAGER 1.00 - - (1.00) CONSTRUCTION & REPAIR SUPVSR 1.00 - 1.00- CUSTODIAL SUPERVISOR 2.00 - 2.00- CUSTODIAN 11.50 (0.50)11.00- DIR OF PUBLIC WORKS 1.00 - 1.00- ELECTRICIAN 2.00 - 2.00- 2602017-05-23 Agenda Packet Page 489 ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 ENGINEERING TECH II 2.00 (2.00)- - ENVIRONMENTAL HLTH SPEC 2.00 (2.00)- - EQUIPMENT OPERATOR 2.00 - 2.00- FACILITIES MANAGER 1.00 - 1.00- GARDENER II 22.00 - 22.00- GRAFFITI ABATEMENT COORDINATOR 1.00 - 1.00- HVAC TECHNCIAN 2.00 - 2.00- LEAD CUSTODIAN 4.00 - 4.00- LOCKSMITH 2.00 - 2.00- MAINTENANCE WORKER I 1.00 - 1.00- MAINTENANCE WORKER II 9.00 - 9.00- MANAGEMENT ANALYST 3.00 (1.00)2.00- OPEN SPACE INSPECTOR 5.00 - 5.00- OPEN SPACE MANAGER 1.00 - 1.00- PARK RANGER SUPERVISOR 1.00 - 1.00- PARKS OPERATIONS MANAGER 1.00 - 1.00- PARKS SUPERVISOR 4.00 - 4.00- PLUMBER 1.00 - 1.00- PRINCIPAL CIVIL ENGINEER 4.00 (4.00)- - PRINCIPAL MANAGEMENT ANALYST - - 1.001.00 PUB WORKS SPECIALIST 1.00 - 1.00- PUBLIC WORKS INSP II 6.00 (6.00)- - PUBLIC WORKS MANAGER 1.00 - 1.00- PUBLIC WORKS SUPERVISOR 2.00 - 2.00- PUMP MAINT TECHNICIAN 5.00 - 5.00- PUMP MAINTENANCE SUPERVISOR 1.00 - 1.00- SECRETARY 1.00 (1.00)- - SIGNING&STRIPING SUPERVISOR 1.00 - 1.00- SR ADMINISTRATIVE SECRETARY 1.00 (1.00)- - SR CIVIL ENGINEER 5.00 (6.00)- 1.00 SR ELECTRONICS TECH 1.00 - 1.00- SR ENGINEERING TECHNICIAN 2.00 (2.00)- - SR FISCAL OFFICE SPECIALIST 2.00 - 2.00- SR GARDENER 9.00 - 9.00- SR HVAC TECHNICIAN 1.00 - 1.00- SR LANDSCAPE INSPECTOR 1.00 - 1.00- SR MAINTENANCE WORKER 8.00 - 8.00- SR MANAGEMENT ANALYST 1.00 - - (1.00) SR OPEN SPACE INSPECTOR 1.00 - 1.00- SR PARK RANGER 1.00 - 1.00- SR PUBLIC WORKS INSP 2.00 (2.00)- - SURVEY TECHNICIAN II 1.00 (1.00)- - 2612017-05-23 Agenda Packet Page 490 ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 TRAFFIC DEVICES TECH 3.00 (3.00)- - TRAFFIC DEVICES TECH SUPV 1.00 (1.00)- - TREE TRIMMER SUPERVISOR 1.00 - 1.00- WASTEWATER/STRMWTR OPS MGR 1.00 - 1.00- 162.50 (46.50)PUBLIC WORKS TOTAL 116.00- RECREATION ADMINISTRATIVE SECRETARY 1.00 - 1.00- AQUATIC SUPV II 2.00 - 2.00- AQUATIC SUPV III 1.00 - 1.00- DIRECTOR OF RECREATION 1.00 - 1.00- MANAGEMENT ANALYST - 1.00 1.00- PRINCIPAL RECREATION MANAGER 2.00 - 2.00- RECREATION SUPERVISOR III 8.00 - 8.00- SR FISCAL OFFICE SPECIALIST 1.00 (1.00)- - SR RECREATION MGR 1.00 - 1.00- 17.00 - RECREATION TOTAL 17.00- LIBRARY DIR OF LIBRARY 1.00 - 1.00- LIBRARIAN I 1.00 - 1.00- LIBRARIAN II 5.00 - 5.00- LIBRARIAN III 2.00 - 2.00- LIBRARY ASSOCIATE 7.50 - 7.50- LIBRARY DIGITAL SERVICES MGR 1.00 - 1.00- MANAGEMENT ANALYST 1.00 - 1.00- PRINCIPAL LIBRARIAN 1.00 - 1.00- SR LIBRARIAN 3.00 - 3.00- 22.50 - LIBRARY TOTAL 22.50- GENERAL FUND SUBTOTAL 825.25 4.50 831.752.00 ADVANCED LIFE SUPPORT PROGRAM EMS NURSE COORDINATOR 1.00 - 1.00- 1.00 - ADVANCED LIFE SUPPORT PROGRAM TOT 1.00- POLICE DEPT GRANTS FUND FA ADMIN ANALYST II 1.00 (1.00)- - FA ANALYST 2.00 - 3.001.00 FA DEPUTY DIRECTOR SDLECC 1.00 - 2.001.00 2622017-05-23 Agenda Packet Page 491 ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 FA DEPUTY EXECUTIVE DIRECTOR 1.00 - 1.00- FA DIRECTOR OF SD LECC 1.00 - 1.00- FA EXECUTIVE DIRECTOR 1.00 (1.00)- - FA FINANCIAL MANAGER 1.00 - 1.00- FA GEOSPATIAL INTEL ANALYST 1.00 - 1.00- FA GRAPHIC DESIGNER/WBMSTR 1.00 - 1.00- FA INFO SECURITY PROGRAM MGR 1.00 - 1.00- FA INTELLIGENCE ANALYST - - 1.001.00 FA IVDC-LECC EXEC DIRECTOR 1.00 - 1.00- FA LECC IT MANAGER 1.00 - 1.00- FA NTWRK ADMINISTRATOR II 4.00 - 4.00- FA PROG ASST SUPERVISOR - - 1.001.00 FA PROGRAM ASSISTANT 2.00 - 1.00(1.00) FA PROGRAM MANAGER 1.00 (1.00)- - FA PUB PRVT PART EXER PRG MGR 1.00 - 1.00- FA RCFL NETWORK ENGINEER 2.00 - 2.00- FA SR FINANCIAL ANALYST 1.00 - 1.00- FA SR INTELLIGENCE ANALYST 7.00 - 9.002.00 FA SR PROGRAM ASSISTANT - - 1.001.00 FA SR SECRETARY 1.00 - 1.00- FA SUPV INTELLIGENCE ANALYST 2.00 - 3.001.00 PEACE OFFICER 3.00 - 3.00- POLICE COMM RELATIONS SPEC 1.00 - 1.00- POLICE SERGEANT 1.00 - 1.00- 39.00 (3.00)POLICE DEPT GRANTS FUND TOTAL 43.007.00 FEDERAL GRANTS FUND EMERGENCY SVCS COORDINATOR 1.00 - 1.00- GIS SPECIALIST 1.00 - 1.00- 2.00 - FEDERAL GRANTS FUND TOTAL 2.00- ENVIRONMENTAL SERVICES RECYCLING SPECIALIST I 3.00 - 3.00- RECYCLING SPECIALIST II 3.00 - 3.00- SR RECYCLING SPECIALIST 1.00 - 1.00- 7.00 - ENVIRONMENTAL SERVICES TOTAL 7.00- CV HOUSING AUTHORITY FUND HOUSING MANAGER 1.00 - 1.00- SR MANAGEMENT ANALYST 2.00 - 2.00- SR PROJECT COORDINATOR 1.00 - 1.00- 2632017-05-23 Agenda Packet Page 492 ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 4.00 - CV HOUSING AUTHORITY FUND TOTAL 4.00- FLEET MANAGEMENT EQUIPMENT MECHANIC 4.00 (1.00)3.00- FIRE APPARATUS MECH 2.00 - 2.00- FISCAL OFFICE SPECIALIST 1.00 - 1.00- FLEET INVENTORY CONTROL SPEC 1.00 - 1.00- FLEET MANAGER 1.00 - 1.00- SR EQUIPMENT MECHANIC 1.00 - 1.00- 10.00 (1.00)FLEET MANAGEMENT TOTAL 9.00- DEVELOPMENT SERVICES FUND ASSOC ENGINEER 3.00 - 3.00- ASSOC PLAN CHECK ENGINEER 3.00 - 3.00- ASSOCIATE PLANNER 5.00 - 5.00- BUILDING INSPECTION MGR 1.00 - 1.00- BUILDING INSPECTOR II 4.00 - 4.00- BUILDING INSPECTOR III 2.00 - 2.00- BUILDING OFF/CODE ENF MGR 1.00 - 1.00- DEVELOPMENT SERVICES TECH I 1.00 - 1.00- DEVELOPMENT SVCS TECH II 3.00 - 3.00- DEVELOPMENT SVCS TECH III 2.00 - 2.00- DEVLPMT SVCS COUNTER MGR 1.00 - 1.00- ENGINEERING TECH II 1.00 - 1.00- LANDSCAPE ARCHITECT 4.00 - 4.00- MANAGEMENT ANALYST 1.00 - 1.00- PLAN CHECK SUPERVISOR 1.00 - 1.00- PLANNING MANAGER 1.00 - 1.00- PRINCIPAL CIVIL ENGINEER 1.00 - 1.00- PRINCIPAL LANDSCAPE ARCHITECT - - 1.001.00 PRINCIPAL PLANNER 2.00 - 1.00(1.00) SECRETARY 1.00 - 1.00- SR BUILDING INSPECTOR 1.00 - 1.00- SR CIVIL ENGINEER 2.00 - 2.00- SR ENGINEERING TECHNICIAN 1.00 - 1.00- SR PLAN CHECK TECHNICIAN 1.00 - 1.00- SR PLANNER 4.00 - 4.00- SR PROJECT COORDINATOR 1.00 - 1.00- SR SECRETARY 1.00 - 1.00- TRANSPORTATION ENGINEER W/CERT 1.00 - 1.00- 2642017-05-23 Agenda Packet Page 493 ADOPTED BUDGET PROPOSED CHANGESCLASSIFICATION PROPOSED BUDGET MIDYEAR CHANGES AUTHORIZED POSITIONS BY DEPARTMENT FY 2016-17 FY 2016-17 FY 2017-18 FY 2017-18 50.00 - DEVELOPMENT SERVICES FUND TOTAL 50.00- SEWER FUNDS ASSOC ENGINEER 2.00 - 2.00- ENGINEERING TECH II 2.00 - 2.00- EQUIPMENT OPERATOR 3.00 - 3.00- MAINTENANCE WORKER II 18.00 - 18.00- PUB WORKS SPECIALIST 1.00 - 1.00- PUBLIC WORKS SUPERVISOR 4.00 - 4.00- SR CIVIL ENGINEER 1.00 - 1.00- SR FISCAL OFFICE SPECIALIST 1.00 - 1.00- SR MAINTENANCE WORKER 14.00 - 14.00- 46.00 - SEWER FUNDS TOTAL 46.00- NON-GENERAL FUND SUBTOTAL 159.00 (4.00) 162.007.00 984.25 0.50TOTAL AUTHORIZED POSITIONS 993.759.00 2652017-05-23 Agenda Packet Page 494 2662017-05-23 Agenda Packet Page 495 FY2018 City of Chula Vista Proposed Budget APPENDIX Fiscal Policies Investment Policies Debt Administration GANN Appropriations Limit Legal Debt Margin Accounting Systems and Budgetary Control List of Acronyms Glossary 2672017-05-23 Agenda Packet Page 496 2682017-05-23 Agenda Packet Page 497 FY2018 City of Chula Vista Proposed Budget Fiscal Policies This section of the budget document reiterates the fiscal policies that were reviewed, acknowledged, or approved/adopted by the City Council. These policies form the overall framework within which the operating budget was formulated. The fiscal policies, most of which are already codified in one form or another, are not considered new or controversial, but are summarized here to assist you to better understand the basis for the resource allocation decisions that were made. General 1. The City’s financial assets will be managed in a sound and prudent manner in order to ensure the continued viability of the organization. 2. A comprehensive operating and capital budget for all City funds will be developed annually and presented to the City Council for approval. The purpose of the annual budget with be to: a. Identify community needs for essential services. b. Identify the programs and specific activities required to provide these essential services. c. Establish program policies and goals that define the nature and level of program services required. d. Identify alternatives for improving the delivery of program services. e. Identify the resources required to fund identified programs and activities, and enable accomplishment of program objectives. f. Set standards to facilitate the measurement and evaluation of program performance. 3. The City’s annual operating budget will be balanced whereby planned expenditures do not exceed anticipated revenues. 4. Recurring revenues will fund recurring expenditures. One‐time revenues will be used for capital, reserve augmentation, or other non‐ recurring expenditures. 5. Accounting systems will be maintained in accordance with Generally Accepted Accounting Principles. 6. Investment policy and practice will be in accordance with State statues that emphasize safety and liquidity over yield, including quarterly status reports to the City Council. (Council Policy) 7. City operations will be managed and budgets prepared with the goal of maintaining an available fund balance in the General Fund of no less than fifteen percent of the General Fund operating budget. (Council Policy) 8. General Fund fiscal status reports reflecting comparisons of actual and projected performance with budget allocations for both revenue and expenditures will be presented to the City Council on a quarterly basis. (City Charter) Revenue 1. The City will endeavor to maintain a diversified and stable revenue base in order to minimize the impact to programs from short‐term economic fluctuations. 2. Revenue projections will be maintained for the current year and four future fiscal years, and estimates will be based on a conservative, analytical, and objective process. 3. In order to maintain flexibility, except as required by law or funding source, the City will avoid earmarking any restricted revenues for specific purpose or program. 4. The City has established user fees to best ensure that those who use a proprietary service pay for that service in proportion to the benefits received. With few exceptions, such as those services provided for low‐income residents, fees have been set to enable the City to recover the full cost of providing those services. (Citywide 2692017-05-23 Agenda Packet Page 498 FY2018 City of Chula Vista Proposed Budget Cost Recovery Policy, Council Policy Number 159‐ 03) 5. User fees will be reviewed and updated on an ongoing basis to ensure that program costs continue to be recovered and that the fees reflect changes in levels of service delivery. (Master Fee Schedule) 6. The City will recover the cost of new facilities and infrastructure necessitated by new development consistent with State law and the City’s Growth Management Program. Development Impact Fees will be closely monitored and updated to ensure that they are maintained at a level adequate to recover costs. (GMOC Ordinance) 7. When considering new development alternatives, the City will attempt to determine the fiscal impact of proposed projects, annexations, etc. and ensure that mechanisms are put in place to provide funding for any projected negative impacts on City operations. (GMOC Ordinance) Expenditures 1. Budgetary control will be exercised at the Department/category level, meaning that each department is authorized to spend up to the total amount appropriated for that department within the expenditure categories of Personnel Costs, Supplies & Services, Other Charges, Utilities, and Capital. Transfers of appropriations between expenditure categories of up to $15,000 may be approved by the City Manager. Transfers of appropriations between expenditure categories in excess of $15,000, between departments, and transfers from CIP projects require City Council approval. (City Charter & Council Policy) 2. Appropriations, other than for capital projects, remaining unspent at the end of any fiscal year will be cancelled and returned to Available Fund Balance with the exception of any appropriations encumbered as the result of a valid purchase order or as approved for a specific project or purpose by the City Council or the City Manager. Appropriations for capital projects will necessarily be carried over from year to year until the project is deemed to be complete. (Council Policy) 3. The City will establish and maintain equipment replacement and facility maintenance funds as deemed necessary to ensure that monies are set aside and available to fund ongoing replacement needs. 4. The City will attempt to compensate non‐safety employees at rates above the middle of the labor market as measured by the median rate for similar jurisdictions. (Council Policy) Capital Improvement Program (CIP) 1. Major capital projects will be included in a CIP Budget reflecting a five‐year period. The CIP budget will be updated annually and presented to City Council for approval. Resources will be formally appropriated (budgeted) for the various projects on an annual basis in accordance with the five‐year plan. City Debt Policy & Debt Management 1. The City will consider the use of debt financing primarily for capital improvement projects (CIP) when the project’s useful life will exceed the term of the financing and when resources are identified sufficient to fund the debt service requirements. Some exceptions to this CIP driven focus are the issuance of debt such as Pension Obligation Bonds, where the financial benefits are significantly greater than the costs and where the benefits are determined to be a financially prudent option; and short‐term instruments such as tax and revenue anticipation notes, which are to be used for prudent cash management purposes. Bonded debt should not be issued for projects with minimal public benefit or support, or to finance normal operating expenses. (Council Policy) If a department has any project which is expected to use debt financing, the department director is responsible for expeditiously providing the Finance Department with reasonable cost 2702017-05-23 Agenda Packet Page 499 FY2018 City of Chula Vista Proposed Budget estimates, including specific revenue accounts that will provide payment for the debt service. This will allow the Finance Department to do an analysis of the project’s potential impact on the City’s debt capacity and limitations. (Council Policy) 2. Debt capacity and affordability will be determined by conducting various analyses prior to the issuance of bonds. The analysis of debt capacity should cover a broad range of factors including but limited to the following: Statutory or constitutional limitations affecting the amount that can be issued, such as legally authorized debt limits and tax or expenditure ceilings Other legal limitations, such as coverage requirements or additional bonds tests imposed by bond covenants Evaluation of trends relating to the government’s financial performance, such as revenues and expenditures, net revenues available after meeting operating requirements, reliability of revenues expected to pay debt service and unreserved fund balance levels Debt service as a percentage of total General Fund Revenues The City will attempt to limit the total amount of annual debt service payments payable by the General Fund to no more than 10% of estimated total General Fund revenues. Under State Law, general obligation bonds shall not exceed 15% of total assessed valuation within the City. An analysis using current market rates and conservative projections showing compliance with the debt affordability limitations included in this Debt Policy shall be conducted before the issuance of any debt with a maturity longer than two years from date of issue. Data showing direct and overlapping debt levels for the City of Chula Vista and surrounding agencies that affect the residents of the City shall be compiled for inclusion in the Comprehensive Annual Financial Report (CAFR) of the City. (Council Policy) 3. In order to maximize the financial options available to benefit the public, it is the policy of the City of Chula Vista to allow for the consideration of issuing all generally accepted types of debt, including, but not exclusive to the following: General Obligation (GO) Bonds: General Obligation Bonds are suitable for use in the construction or acquisition of improvements to real property that benefit the public at large. Examples of projects include libraries, parks, and public safety facilities. All GO bonds require a 2/3 vote in order to pass. Revenue Bonds: Revenue Bonds are limited‐ liability obligations tied to a specific enterprise revenue stream where the projects financed clearly benefit or relate to the enterprise. An example of projects that would be financed by a Revenue Bond would be improvements to the sewer system, which would be paid back with money raised from the property owner’s sewer bills. Generally, no voter approval is required to issue this type of obligation but must comply with proposition 218 regarding rate adjustments. Lease‐Backed Debt/Certificates of Participation (COP): Issuance of COP debt is a commonly used form of debt that allows a City to finance projects where the debt service is secured via a lease or installment agreement and where the payments are budgeted in the annual budget appropriation by the City from the general fund. Lease‐ Backed debt does not constitute indebtedness under the state or the City’s constitutional debt limit and does not require voter approval. Special Assessment/Special District Debt: the City will consider requests from developers for the use of debt financing secured by property based assessments or special taxes in order to provide for necessary infrastructure for new development only under strict guidelines adopted by City 2712017-05-23 Agenda Packet Page 500 FY2018 City of Chula Vista Proposed Budget Council, which may include minimum value‐ to‐lien ratios and maximum tax burdens. Examples of this type of debt are Assessment Districts (AD) and Community Facilities Districts (CFD) or more commonly known as Mello‐Roos Districts. In order to protect bondholders as well as the City’s credit rating, all Rate and Method of Apportionment (RMA) documents must include the provision that the maximum projected annual special tax revenues must equal 110% of the projected annual gross debt service on any bonds of the community facilities district. The City will also comply with all State guidelines regarding the issuance of special district or special assessment debt. For further information, refer to the City of Chula Vista Statement of Goals and Policies Regarding the Establishment of Community Facility Districts. Industrial Development Bonds – Industrial Development Bonds (IDBs) are tax‐exempt securities which can fund manufacturing businesses or energy development projects which provides a public benefit. While the authorization to issue IDBs is provided by a state statute, the tax‐exempt status of these bonds is derived from federal law (IRS Code Section 103(b) (2). Tax Allocation Bonds – Tax Allocation Bonds are special obligations that are secured by the allocation of tax increment revenues that were generated by increased property taxes in the designated redevelopment area. Tax Allocation Bonds are not debt of the City. Due to changes in the law affecting California Redevelopment agencies with the passage of ABX1 26 as codified in the California Health and Safety Code, the City of Chula Vista Redevelopment Agency (RDA) was dissolved as of February 1, 2012, and its operations substantially eliminated but for the continuation of certain enforceable RDA obligations to be administered by the City of Chula Vista Successor Agency. The terms of ABX 1 26 requires successor agencies perform all obligations with respect to enforceable debt obligations, which include Tax Allocation Bonds. Multi‐Family Mortgage Revenue Bonds – The City Housing Authority is authorized to issue mortgage revenue bonds to finance the development, acquisition and rehabilitation of multi‐family rental projects. The interest on the bonds can be exempt from Federal and State taxation. As a result, bonds provide below market financing for qualified rental projects. In addition, the bonds issued can qualify projects for allocations of Federal low‐income housing tax credits, which can provide a significant portion of the funding necessary to develop affordable housing. For further information, refer to the Chula Vista Housing Authority – Multi‐Family Administrative Bond Policies. HUD Section 108 Loan Guarantee Program – The U.S. Department of Housing and Urban Development (HUD) Section 108 Loan Guarantee Program allows cities to use their annual Community Development Block Grant (CDBG) entitlement grants to obtain federally guaranteed funds large enough to stimulate or pay for major community development and economic development projects. The program does not require a pledge of the City’s General Fund, only of future CDBG entitlements. By pledging future CDBG entitlement grants as security, the City can borrow at favorable interest rates because of HUD’s guarantee of repayment to investors. (Council Policy) 4. The City will strive to minimize borrowing costs by: Seeking the highest credit rating possible; Maintaining transparency and excellent communications with credit rating agencies regarding the City’s fiscal condition; Purchasing bond insurance or taking action to upgrade the City’s current credit rating (Council Policy) 5. The City will comply with Rule 15(c) 2‐12 of the Securities Exchange Commission (SEC) and provide timely disclosure of relevant information 2722017-05-23 Agenda Packet Page 501 FY2018 City of Chula Vista Proposed Budget on an annual basis as well as any material event notices as required. (Council Policy) 6. In addition to externally financed debt, the City utilizes inter‐fund loans whenever possible to reduce borrowing costs or provide for shorter term loans. When interest is charged on internal loans, it is done at the same rate the City earns from its pooled investments. Sewer Service Revenue Fund Reserve Policy 1. Working Capital and Rate Stabilization Reserve Working Capital and Rate Stabilization reserves in the Sewer Service Revenue Fund will be restricted to maintaining operating the wastewater collection system and paying treatment charges to City of San Diego Metropolitan Wastewater (“Metro”). The reserve will be funded from revenues accumulated in the Sewer Service Revenue Fund. IT is intended to accommodate any natural variability in revenues and expenditures, including potential disruptions of cash flows due to varied billing methodology, short term fluctuations and annual cycles. The reserve will also assist in addressing shortfalls which may occur due to unanticipated cost increases in labor or energy and other consumption based goods and services, such as wastewater treatment services provided by Metro. The reserves represent unrestricted resources available for appropriation by the City Council addressing unforeseen needs for sewer services. The Working Capital and Rate Stabilization Reserves will assist the City in addressing the following items: Rate Stabilization – the reserves will allow the City the flexibility to “smooth” rates and phase increases in over multiple years, which is prudent given the potential variability in the City’s payments to Metro. Revenue Collection Fluctuations – the reserves will be used to protect the City from natural fluctuations in revenue and expenditure cycles which is prudent given that the City bills customers at different points in time but incurs expenses continuously throughout the year. Rates of delinquencies – delays in collection of outstanding revenues. Payroll cycles – the timing of fixed cash requirement for payroll, as related to the timing of revenue cycles. Unanticipated expenses – expenses whose characteristics make accurate estimation difficult, such as increases in wastewater treatment services provided by the City of San Diego, energy costs, labor benefits and other consumption based goods and services. The City shall maintain a Sewer Revenue reserve equivalent to 90 days of operating expenditures and a Rate Stabilization reserve equivalent to 90 days of operating expenditures for a minimum combined total of 180 days and a maximum reserve balance of 125% of the minimum balance. If funds are appropriated from the Sewer Revenue Working Capital and Rate Stabilization Reserves, the funds should be replenished in the budget process during subsequent fiscal years to the minimum reserve balance. If the magnitude of the event caused the Sewer Revenue Working Capital and a Stabilization Reserves to be less than 30 days of operating and maintenance budget, the Finance Director shall provide the City Council with a plan to incrementally replenish the reserves to the 180 days minimum reserve balance. (Council Policy) 2. Emergency Reserve The Sewer Service Revenue Fund Emergency Reserve is necessary to secure funding for insurance deductibles, unforeseen liabilities/litigation and settlement costs related to the City’s wastewater system. The City shall maintain a minimum Sewer Service Revenue Fund Emergency Reserve target level of 5% of the operating and maintenance budget and a maximum reserve balance of 125% of the minimum balance. If the funds are appropriated from the Sewer Revenue Emergency Reserves 2732017-05-23 Agenda Packet Page 502 FY2018 City of Chula Vista Proposed Budget due to unanticipated needs, the Finance Director shall provide the City Council with a plan to incrementally replenish the reserves to the minimum reserve balance. (Council Policy) 3. Vehicle Replacement Reserve The Sewer Service Revenue Fund Vehicle Replacement Reserves represents monies set aside to fund the replacement of aging vehicles. The allocation is funded from revenues accumulated in the Sewer Service Revenue Fund. The City shall maintain a minimum Sewer Services Fund Vehicle Replacement Reserve target of 2% of the operating and maintenance budget. This reserve will ensure that vehicles utilized for sewer operations are replaced as scheduled and available to deploy as needed. To achieve a minimum impact to cost of services and rates, funds will be included in the proposed budget on an annual basis as identified in the City’s Vehicle Replacement schedule. The cost of replacing all vehicles will be averaged over the lifespan of the existing fleet. This will generate a more normalized cost of services by evenly distributing revenue requirements on a year‐to year‐basis offsetting temporary cash flow deficiencies and avoid significant increases in rate charges to customers in the years the replacement cost are incurred. (Council Policy) 4. USEPA Permit Renewal Liability Reserve The Sewer Service Revenue Fund USEPA Permit Renewal Liability Reserve will account for monies set aside to fund the City of San Diego Metropolitan Wastewater costs related to the potential upgrade of the Point Loma Wastewater Treatment Plant (PLWTP) or other alternative for secondary treatment. The reserve will be funded from revenues accumulated in the Sewer Service Revenue Fund. Metro’s USEPA waiver expires in FY 2015 and may not be renewed. If denied, Metro would need to develop and implement improvements to achieve secondary treatment level at PLWTP. Current cost estimates to establish full secondary treatment at PLWTP as well as possible alternatives are all significant (>$1 Billion). As a contributing member to the regional treatment plant, the City of Chula Vista’s share in the cost of any upgrade would be approximately 10 percent for the capital improvements and any increase in the overall treatment cost. It is expected that Metro will have 10 years after the expiration of the USEPA waiver to institute secondary treatment or alternative. This reserve establishes a dedicated fund that will offset a portion of the City’s share of any obligation related to the PLWTP USEPA waiver. By actively planning for the PLWTP upgrade or alternative the City will be in a stronger financial position to afford such costs while mitigating impacts to ratepayers. The Permit Renewal Liability Reserve will be funded through annual contributions with the intent to reach a target balance of 20% of Chula Vista’s share of the upgrade cost by FY 2024/25 (10 years after the expiration of the waiver). If substantial increases in Metro‐related costs occur sooner than expected, the City may draw down reserve levels prior to FY 2024/25 to manage impacts to ratepayers. To be consistent with the City’s policy for managing balances for its other utility reserves, if funds are appropriated from the reserve before its intended use, the funds should be replenished in subsequent fiscal years. If the magnitude of withdrawal is material, the Finance Director shall provide the City Council with a plan to incrementally replenish the reserves. If the actual costs for the PLWTP upgrade or alternative are less than anticipated, any unspent reserves will be rolled into the Working Capital and Rate Stabilization Reserve and utilized to fund City sewer programs, including maintenance and expansion of the City’s conveyance system and payment of San Diego Metro wastewater treatment costs. (Council Policy) 2742017-05-23 Agenda Packet Page 503 FY2018 City of Chula Vista Proposed Budget Investment Policies 1.0 Purpose This “Investment Policy and Guidelines” (the “Investment Policy”) Policy is intended to provide guidelines for the prudent investment of the City of Chula Vista’s (the “City”) cash balances, and outline policies to assist in maximizing the efficiency of the City’s cash management system, while meeting the daily cash flow demands of the City. 2.0 Policy The investment practices and policies of the City of Chula Vista are based upon state law and prudent money management. 3.0 Scope This Investment Policy applies to all financial assets of the City of Chula Vista, as indicated in 3.1 below. These funds are accounted for in the City’s Comprehensive Annual Financial Report. 3.1 Funds The Director of Finance/Treasurer is responsible for investing the unexpended cash in the City Treasury for all funds, except for the employee’s retirement funds, which are administered separately, and those funds which are managed separately by trustees appointed under indenture agreements. The Director of Finance/Treasurer will strive to maintain the level of investment of this cash as close as possible to 100%. These funds are described in the City’s annual financial report and include: General Fund Special Revenue Funds Capital Project Funds Enterprise Funds Trust and Agency Funds Any new fund created by the legislative body, unless specifically exempted This Investment Policy applies to all transactions involving the financial assets and related activity of the foregoing funds. 4.0 Prudence The standard of prudence to be used by the Director of Finance/Treasurer shall be the “prudent investor standard”. This shall be applied in the context of managing an overall portfolio. The “prudent investor standard” is applied to local agencies, pursuant to California Government Code Section 53600.3 which provides, in pertinent part: “ … all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency…” 4.1 Personal Responsibility The Director of Finance/Treasurer, Assistant Director of Finance, Treasury Manager and Finance Manager as investment officers acting in accordance with written procedures and the Investment Policy and exercising due diligence, shall be relieved of personal responsibility for an individual security’s credit risk or market price changes, provided deviations from expectations are reported to the City Council in a timely fashion and appropriate action is taken to control adverse developments. 5.0 Objective Consistent with this aim, investments are made under the terms and conditions of California Government Code Section 53600, et seq. Criteria for selecting investments and the absolute order of priority are: 2752017-05-23 Agenda Packet Page 504 FY2018 City of Chula Vista Proposed Budget 5.1 Safety Safety of principal is the foremost objective of the investment program. Investments of the City of Chula Vista shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, diversification is required in order that potential losses on individual securities do not exceed the income generated from the remainder of the portfolio. 5.2 Liquidity The City of Chula Vista’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated and to maintain compliance with any indenture agreement, as applicable. Liquidity is essential to the safety of principal. 5.3 Return on Investments The City of Chula Vista’s investment portfolio shall be designed with the objective of attaining a market‐ average rate of return throughout budgetary and economic cycles (market interest rates), within the City’s Investment Policy’s risk parameters and the City’s cash flow needs. See also Section 16.0. 6.0 Delegation of Authority The Director of Finance/Treasurer shall be responsible for all transactions undertaken and shall establish a system of controls and written procedures to regulate the activities of subordinate officials. The responsibility for the day‐to‐day investment of City funds will be delegated to the Assistant Director of Finance or their designee. The Director of Finance/Treasurer may delegate day‐to‐ day investment decision making and execution authority to an investment advisor. The advisor shall follow the Investment Policy and such other written instructions as are provided. 7.0 Ethics and Conflicts of Interest In addition to state and local statutes relating to conflicts of interest, all persons involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Employees and investment officers, including investment advisors, are required to file annual disclosure statements as required for “public officials who manage public investments” [as defined and required by the Political Reform Act and related regulations, including Government Code Sections 81000, et seq., and the rules, regulations and guidelines promulgated by California’s Fair Political Practices Commission (FPPC)]. 8.0 Authorized Financial Dealers and Institutions The City’s Director of Finance/Treasurer will maintain a list of the financial institutions and brokers/dealers authorized to provide investment and depository services and will perform an annual review of the financial condition and registrations of qualified bidders and require annual audited financial statements to be on file for each company. The City will utilize Moody’s Securities or other such services to determine financially sound institutions with which to do business. The City shall annually send a copy of the current Investment Policy to all financial institutions and brokers/dealers approved to do business with the City. As far as possible, all money belonging to, or in the custody of, a local agency, including money paid to the City’s Director of Finance/Treasurer or other official to pay the principal, interest, or penalties of bonds, shall be deposited for safekeeping in state or national banks, savings associations, federal associations, credit unions, or federally insured industrial loan companies in this state selected by the City’s Director of Finance/Treasurer; or may be invested in the investments set forth in Section 9.0. To be eligible to receive local agency money, a bank, savings association, federal association, or federally insured industrial loan company shall have received an overall rating of not less than “satisfactory” in its most recent evaluation by the appropriate federal financial supervisory agency of its record of meeting the credit needs of California’s communities, including low‐ and moderate‐income neighborhoods. To provide for the optimum yield in the investment of City funds, the City’s investment procedures shall encourage competitive bidding on transactions from approved brokers/dealers. In order to be approved 2762017-05-23 Agenda Packet Page 505 FY2018 City of Chula Vista Proposed Budget by the City, the dealer must meet the following criteria: (i) the dealer must be a “primary” dealer or regional dealer that qualifies under Securities and Exchange Commission Rule 15C3‐1 (Uniform Net Capital Rule); (ii) the dealer’s institution must have an office in California; (iii) the dealer must be experienced in institutional trading practices and familiar with the California Government Code as related to investments appropriate for the City; and (iv) all other applicable criteria, as may be established in the investment procedures. All brokers/dealers and financial institutions who desire to become qualified bidders for investment transactions must submit a “Broker/Dealer Application” and related documents relative to eligibility including a current audited annual financial statement, U4 form for the broker, proof of state registration, proof of Financial Industry Regulatory Authority (FINRA) certification and a certification of having read and understood the City’s Investment Policy and agreeing to comply with the Investment Policy. The City’s Director of Finance/Treasurer shall determine if they are adequately capitalized (i.e. minimum capital requirements of $10,000,000 and five years of operation). If the City has an investment advisor, the investment advisor may use its own list of authorized broker/dealers to conduct transactions on behalf of the City. 9.0 Authorized & Suitable Investments The City is authorized by California Government Code Section 53600, et. seq., to invest in specific types of securities. Where this section specifies a percentage limitation for a particular security type, that percentage is applicable only on the date of purchase. Credit criteria listed in this section refers to the credit rating at the time the security is purchased. If an investment’s credit rating falls below the minimum rating required at the time of purchase, the Director of Finance/Treasurer will perform a timely review and decide whether to sell or hold the investment. Investments not specifically listed below are deemed inappropriate and prohibited: A. BANKERS’ ACCEPTANCES. A maximum of 40% of the portfolio may be invested in bankers’ acceptances. The maximum maturity is 180 days. Eligible bankers’ acceptances shall have the highest ranking or the highest letter and number rating in a rating category as provided by a nationally recognized statistical rating organization (NRSRO). B. NEGOTIABLE CERTIFICATES OF DEPOSIT. A maximum of 30% of the portfolio may be invested in negotiable certificates of deposit (NCD’s). The maximum maturity of a NCD issue shall be 5 years. These are issued by commercial banks and thrift institutions against funds deposited for specified periods of time and earn specified or variable rates of interest. Negotiable certificates of deposit (NCD) differ from other certificates of deposit by their liquidity. NCD’s are traded actively in secondary markets. NCD’s with maturities under one year must be rated in a rating category of “A‐1,” its equivalent, or better by a NRSRO. NCD’s with maturities in excess of one year must be rated in a rating category of “A,” its equivalent or better by a NRSRO. In compliance with California Code 53601.8, all FDIC insured CD’s, when placed through a deposit placement service, will be measured for compliance with NCD’s. C. COMMERCIAL PAPER. A maximum of 25% of the portfolio may be invested in commercial paper. The maximum maturity is 270 days. Commercial paper of prime quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet all of the following conditions in either paragraph (1) or paragraph (2): 1) The entity meets the following criteria: a. Is organized and operating in the United States as a general corporation. b. Has total assets in excess of five hundred million dollars ($500,000,000). c. Has debt other than commercial paper, if any, that is rated in a rating category of “A” or higher, or the equivalent, by a NRSRO. 2772017-05-23 Agenda Packet Page 506 FY2018 City of Chula Vista Proposed Budget 2) The entity meets the following criteria: a. Is organized within the United States as a special purpose corporation, trust, or limited liability company. b. Has program wide credit enhancements including, but not limited to, over collateralization, letters of credit, or surety bond. c. Has commercial paper that is rated in a rating category of “A‐1” or higher, or the equivalent, by a NRSRO. D. BONDS ISSUED BY THE CITY OR ANY LOCAL AGENCY WITHIN THE STATE OF CALIFORNIA. Bonds must have a rating in a rating category of “A,” its equivalent or better from a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. E. OBLIGATIONS OF THE UNITED STATES TREASURY. United States Treasury Notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limit on the percentage of the portfolio that can be invested in this category. F. FEDERAL AGENCIES. Federal agency or United States government‐sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government‐sponsored enterprises. There is no limit on the percentage of the portfolio that can be invested in this category. G. REPURCHASE AGREEMENT, maximum term 3 months. Investments in repurchase agreements may be made, on any investment authorized in this section, when the term of the agreement does not exceed 3 months. A Master Repurchase Agreement must be signed with the bank or broker/dealer who is selling the securities to the City. There is no limit on the percentage of the portfolio that can be invested in this category. H. REVERSE‐REPURCHASE AGREEMENTS (Requires Council approval for each transaction). Reverse repurchase agreements or securities lending agreements may be utilized only when all of the following conditions are met: 1) The security to be sold on reverse repurchase agreement or securities lending agreement has been owned and fully paid for by the local agency for a minimum of 30 days prior to sale. 2) The total of all reverse repurchase agreements and securities lending agreements on investments owned by the local agency does not exceed 20% of the base value of the portfolio. 3) The agreement does not exceed a term of 92 days, unless the agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. 4) Funds obtained or funds within the pool of an equivalent amount to that obtained from selling a security to a counter party by way of a reverse repurchase agreement or securities lending agreement, shall not be used to purchase another security with a maturity longer than 92 days from the initial settlement date of the reverse repurchase agreement or securities lending agreement, unless the reverse repurchase agreement or securities lending agreement includes a written codicil guaranteeing a minimum earning or spread for the entire period between the sale of a security using a reverse repurchase agreement or securities lending agreement and the final maturity date of the same security. Investments in reverse repurchase agreements, securities lending agreements, or similar investments in which the local agency sells securities prior to purchase with a simultaneous agreement to repurchase the security shall only be made with primary dealers of the Federal Reserve Bank of New York or with a nationally or 2782017-05-23 Agenda Packet Page 507 FY2018 City of Chula Vista Proposed Budget state‐chartered bank that has or has had a significant banking relationship with a local agency. 5) For purposes of this policy, “significant banking relationship” means any of the following activities of a bank: a. Involvement in the creation, sale, purchase, or retirement of a local agency’s bonds, warrants, notes, or other evidence of indebtedness. b. Financing of a local agency’s activities. c. Acceptance of a local agency’s securities or funds as deposits. I. MEDIUM‐TERM CORPORATE NOTES. A maximum of 30% of the portfolio may be invested in medium‐term corporate notes, with a maximum remaining maturity of five years or less. Notes eligible for investment shall be rated in a rating category of “A,” its equivalent or better by a NRSRO. J. TIME DEPOSITS‐CERTIFICATES OF DEPOSIT (non‐ negotiable certificates of deposit). The maximum maturity is 3 years. Certificates of deposit are required to be collateralized as specified under Government Code Section 53630 et seq. The City, at its discretion, may waive the collateralization requirements for any portion that is covered by Federal Deposit Insurance Corporation (FDIC) insurance. The City shall have a signed agreement with any depository accepting City funds per Government Code Section 53649. No deposits shall be made at any time in certificates of deposit issued by a state or federal credit union if a member of the City Council or the Chief Financial Officer serves on the board of directors or any committee appointed by the board of directors of the credit union. In accordance with Government Code Section 53638, any deposit shall not exceed that total shareholder’s equity of any depository bank, nor shall the deposit exceed the total net worth of any institution. There is no limit on the percentage of the portfolio that can be invested in this category K. OBLIGATIONS OF THE STATE OF CALIFORNIA. Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by the state, or by a department, board, agency or authority of the state. Obligations must be rated in a rating category of “A,” its equivalent or better by a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. L. OBLIGATIONS OF THE OTHER 49 STATES. Including bonds payable solely out of revenues from a revenue producing property owned, controlled or operated by any of these states, or by a department, board, agency or authority of the state. Obligations must be rated in a rating category of “A,” its equivalent or better by a NRSRO. There is no limit on the percentage of the portfolio that can be invested in this category. M. MONEY MARKET FUNDS. A maximum of 20% of the portfolio may be invested in money market funds. No more than 10% of the City’s portfolio may be invested in shares of beneficial interest of any one Money Market fund. Local agencies may invest in “shares of beneficial interest” issued by diversified management companies which invest only in direct obligations in U.S. Treasury bills, notes and bonds, and repurchase agreements collateralized with U.S. Treasuries with a weighted average of 60 days or less. They must have the highest rating from two NRSRO’s or have retained an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years of experience managing money market mutual funds and with assets under management in excess of $500,000,000. The purchase price of the shares may not include commission. N. SAN DIEGO COUNTY TREASURER’S POOLED MONEY FUND. Also known as the San Diego County Investment Pool, the pool is a local government money fund created to invest the assets of the County of San Diego and other public agencies located within the County. The three primary objectives of the County Pool are 2792017-05-23 Agenda Packet Page 508 FY2018 City of Chula Vista Proposed Budget to safeguard principal; to meet liquidity needs of Pool participants; and to achieve an investment return on the funds within the guidelines of prudent risk management. Investment in the County Pool is highly liquid and the City may invest with no portfolio percentage limit. O. THE LOCAL AGENCY INVESTMENT FUND (LAIF). LAIF is a special fund of the California State Treasury through which any local government may pool investments. The City may invest up to $50 million in this fund. Investments in LAIF are highly liquid and may be converted to cash within 24 hours. P. SHARES OF BENEFICIAL INTEREST ISSUED BY A JOINT POWERS AUTHORITY (Local Government Investment Pools [LGIP]). There is no limit on the percentage of the portfolio that can be invested in this category. LGIP’s organized pursuant to Government Code Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (o) of California Government Code Section 53601, inclusive. Each share will represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section the joint powers authority issuing the shares will have retained an investment adviser that meets all of the following criteria: The adviser is registered or exempt from registration with the Securities and Exchange Commission. The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (o) Government Code Section 53601, inclusive. The adviser has assets under management in excess of five hundred million dollars ($500,000,000). Q. ASSET BACKED SECURITIES (ABS). A maximum of 20% of the portfolio may be invested in ABS. The maximum maturity is five years. Securities eligible for investment under this subdivision shall be issued by an issuer rated in a rating category of “A,” its equivalent or higher rating for the issuer’s debt as provided by an NRSRO and rated in a rating category of “AA” or its equivalent or better by an NRSRO. ABS constitutes a mortgage pass‐through security, collateralized mortgage obligation, mortgage‐ backed or other pay‐through bond, equipment lease‐backed certificate, consumer receivable pass‐through certificate, or consumer receivable‐ backed bond. R. SUPRANATIONALS. A maximum of 30% of the portfolio may be invested in supranationals. The maximum maturity is five years. Securities eligible for purchase under this subdivision shall be United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter‐ American Development Bank that are eligible for purchase and sale within the United States. Investments under this subdivision shall be rated in a rating category of “AA,” its equivalent or better by an NRSRO. 9.1 Investment Pools The City’s Director of Finance/Treasurer or designee shall be required to investigate all local government investment pools and money market mutual funds prior to investing and performing at least a quarterly review thereafter while the City is invested in the pool or the money market fund. LAIF is authorized under provisions in Section 16429.1 of the California Government Code as an allowable investment for local agencies even though some of the individual investments of the pool are not allowed as a direct investment by a local agency. 10.0 Portfolio Adjustments Should any investment listed in section 9.0 exceed a percentage‐of‐portfolio limitation due to an incident such as fluctuation in portfolio size, the affected securities may be held to maturity to avoid losses. When no loss is indicated, the Director of Finance/Treasurer shall consider reconstructing the portfolio basing his or her decision on the expected length of time the portfolio will be unbalanced. If this occurs, the City Council shall be notified. 2802017-05-23 Agenda Packet Page 509 FY2018 City of Chula Vista Proposed Budget 11.0 Collateralization Under provisions of the California Government Code, California banks, and savings and loan associations are required to secure the City’s deposits by pledging government securities with a value of 110 % of principal and accrued interest. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total deposits. Collateral will always be held by an independent third party. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the City and retained. The market value of securities that underlay a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities and the value shall be adjusted no less than quarterly. Since the market value of the underlying securities is subject to daily market fluctuations, the investments in repurchase agreements shall be in compliance if the value of the underlying securities is brought back up to 102% no later than the next business day. The Director of Finance/Treasurer, at his or her discretion, may waive the collateral requirement for deposits that are fully insured up to $250,000 by the Federal Deposit Insurance Corporation. The right of collateral substitution is granted. 12.0 Safekeeping and Custody All City investments shall identify the City of Chula Vista as the registered owner, and all interest and principal payments and withdrawals shall indicate the City of Chula Vista as the payee. All securities shall be safe kept with the City itself or with a qualified financial institution, contracted by the City as a third party. All agreements and statements will be subject to review annually by external auditors in conjunction with their audit. In the event that the City has a financial institution hold the securities, a separate custodial agreement shall be required. All securities shall be acquired by the safekeeping institution on a “Delivery‐Vs‐Payment” (DVP) basis. For Repurchase Agreements, the purchase may be delivered by book entry, physical delivery or by third‐ party custodial agreement consistent with the Government Code. The transfer of securities to the counter party bank’s customer book entry account may be used for book entry delivery. 13.0 Diversification The City’s investment portfolio will be diversified to avoid incurring unreasonable and avoidable risks associated with concentrating investments in specific security types, maturity segment, or in individual financial institutions. No more than 5% of the investment portfolio shall be in securities of any one issuer except for U.S. Treasuries, U.S. Government Agency issues, and investment pools such as LAIF, the San Diego County Pool, money market funds, and local government investment pools (LGIP’s). A. Credit risk, defined as the risk of loss due to failure of the insurer of a security, shall be mitigated by investing in those securities with an “A” or above rating and approved in the Investment Policy and by diversifying the investment portfolio so that the failure of any one issuer would not unduly harm the City’s cash flow. B. Market risk, defined as the risk of market value fluctuations due to overall changes in the general level of interest rates, shall be mitigated by implementing a long‐term investment strategy. It is explicitly recognized herein, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of overall investment return. The City’s investment portfolio will remain sufficiently liquid to enable the City to meet all operating requirements which might be reasonably anticipated. 14.0 Maximum Maturities To the extent possible, the City will attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five (5) years from the date of purchase, unless, the legislative body has granted express authority to make that investment either specifically, or as a part of an investment program approved by the City Council at least three (3) months prior to the investment. 2812017-05-23 Agenda Packet Page 510 FY2018 City of Chula Vista Proposed Budget 15.0 Internal Control The Director of Finance/Treasurer shall establish a system of internal controls designed to prevent loss of public funds due to fraud, employee error, or misrepresentation by third parties. No investment personnel, including an investment advisor, may engage in an investment transaction except as provided for under the terms of this Investment Policy and the procedure established by the Director of Finance/Treasurer. The external auditors shall annually review the investments with respect to the Investment Policy. This review will provide internal control by assuring compliance with policies and procedures for the investments that are selected for testing. Additionally, account reconciliation and verification of general ledger balances relating to the purchasing or maturing of investments and allocation of investments to fund balances shall be performed by the Finance Department and approved by the Director of Finance/Treasurer. To provide further protection of City funds, written procedures prohibit the wiring of any City funds without the authorization of at least two of the following four designated City staff: 1. Director of Finance/Treasurer 2. Assistant Director of Finance 3. Treasury Manager 4. Finance Manager 16.0 Performance Standards The investment portfolio shall be managed to attain a market‐average rate of return throughout budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow. Investment return becomes a consideration only after the basic requirements of investment safety and liquidity have been met. In evaluating the performance of the City’s portfolio in complying with this policy, the City shall establish an appropriate performance benchmark and compare the return of its portfolio to the return of the benchmark. 17.0 Reporting The Director of Finance/Treasurer shall submit a quarterly investment report to the City Council and City Manager following the end of each quarter. This report will include the following elements: Type of investment Institutional issuer Purchase date Date of maturity Amount of deposit or cost of the investment Face value of the investment Current market value of securities and source of valuation Rate of interest Interest earnings Statement relating the report to its compliance with the Statement of Investment Policy or the manner in which the portfolio is not in compliance Statement on availability of funds to meet the next six month’s obligations Monthly and year‐to‐date budget amounts for interest income Percentage of portfolio by investment type Days to maturity for all investments Comparative report on monthly investment balances & interest yields Monthly transactions Compare portfolio total return to market benchmark total return In addition, a commentary on capital markets and economic conditions may be included with the report. 18.0 Investment Policy Review and Adoption This Investment Policy shall be reviewed at least annually by the Director of Finance/Treasurer to ensure its consistency with the overall objective of preservation of principal, liquidity, and return, and its relevance to current law and financial and economic trends. Each fiscal year, the Finance Director shall provide a copy of the City’s current Investment Policy and Guidelines to the City Council. By virtue of a resolution of the City Council of the City of Chula Vista, the Council shall acknowledge the receipt of the Policy for the respective fiscal year. This Policy is a draft being considered by City Council on May 23, 2017 2822017-05-23 Agenda Packet Page 511 FY2018 City of Chula Vista Proposed Budget Debt Administration Based on the most recent audited financial statements, which were for the year ended June 30, 2016, the City and the former Redevelopment Agency (Agency) borrowed funds through several long‐term debt issues and held other obligations which are to be funded over a period of time longer than one year, are categorized as follows: Description Principal Outstanding Interest Outstanding Total Debt Outstanding Tax Allocation Bonds 37,465,000$ 16,365,089$ 53,830,089$ Certificates of Participation 111,195,000$ 50,789,403$ 161,984,403$ Bond Premium 5,246,819$ ‐$ 5,246,819$ Bond Discount (540,623)$ ‐$ (540,623)$ Capital Leases 2,467,714$ 601,556$ 3,069,270$ Notes/Loans Payable 4,338,577$ 581,345$ 4,919,922$ CDBG Section 108 Loan 7,161,000$ 2,695,007$ 9,856,007$ Miscellaneous Claims Payable 22,468,939$ ‐$ 22,468,939$ Compensated Absences (Employee Leave)7,246,998$ ‐$ 7,246,998$ Subtotal 197,049,424$ 71,032,401$ 268,081,825$ Advances from Other Funds 48,607,965$ ‐$ 48,607,965$ TOTAL LONG TERM DEBT 245,657,389$ 71,032,401$ 316,689,790$ 2832017-05-23 Agenda Packet Page 512 FY2018 City of Chula Vista Proposed Budget This section discusses the various types of long‐term debt that the City has incurred. Bond financings, notes payable, capital leases and advances from other funds are the traditional forms of long‐term debt that the City has incurred. However, also captured in this section are professional estimates derived from actuarial studies for workers compensation and general liability claims. In addition, the Finance Department provides an estimate of the City’s liability for compensated absences as of the end of each fiscal year. The following sections discuss the details of the City’s long‐ term debt. Tax Allocation Bonds ($37.5 million) Tax Allocation Bonds (TABS) are issued by the Agency and utilize tax increment revenue for debt service. The 2006 Senior TABS, Series A and 2006 Subordinate TABS, Series B were issued to refund the 1994 TABS Series A, C and D that were issued to refund prior obligations of the Bayfront and Town Center 1 project areas. In July 2008 the Agency issued the 2008 Tax Allocation Refunding Bonds to refund the 2000 TABS that were issued by the Southwest, Otay Valley and Town Center 2 project areas to finance certain redevelopment activities in those areas. Certificates of Participation ($111.2 million) As of June 30, 2016, the City currently has four outstanding Certificates of Participation. In March 2006, the Chula Vista Public Financing Authority (Authority) issued the 2006 COP to finance the Phase 2 construction and equipping of certain improvements to the Civic Center Complex of the City and other existing City Facilities. In February 2010, the Authority issued the 2010 COP to refund the 2000 COP and to provide funds for the construction, reconstruction, modernization and equipping of Phase 3 of the Civic Center Complex, reimburse the PFDIF funds, fund capitalized interest, fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. In February 2014, the authority issued the 2014 COP to refund the 2002 COP (Police Facility Project), fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. In September 2015, the authority issued the 2015 COP to refund the 2004 COP (Civic Center Project Phase I) and partially refund the 2006 COP (Civic Center Project Phase II), fund a reserve fund, and pay the costs incurred in connection with the execution and delivery of the Certificates. Bond Premium ($5.2 million) The premium is composed of three bond issuances. One is for the premium on the issuance of the 2004 COP Civic Center Phase 1. Original amount was $35,254. This amount is amortized over 30 years. The second premium is in connection with the 2014 COP refunding bonds. The original amount of the premium is $3,537,111 and will be amortized over the life of the bonds. The third premium is related to the 2015 COP refunding bonds. The original amount of the premium is $2,262,493 and will be amortized over the life of the bonds. Bond Discount (‐$0.5 million) This is the discount on the issuance of the 2006 COP Civic Center Phase II and the 2010 COP Civic Center Phase III. The original amounts were $77,820 and $709,819 respectively. These amounts are amortized over the life of the bonds. Capital Leases ($2.5 million) In July 2013, the City Council authorized a 16 year lease purchase agreement with Banc of America to fund various solar energy projects for City facilities. The original amount of the loan was $2,121,500 and will be repaid through future energy savings. In September 2013, the City entered into a lease purchase agreement with Osh Kosh Capital for the acquisition of a Pierce Arrow XT Triple Combination Pumper Fire Engine. The original amount of the loan was $578,224. In March 2015, the City entered into a lease agreement with Marlin Leasing Corporation for the acquisition of Mobile Data Computers. The original amount of the loan was $377,487. Notes/Loans Payable ($4.3 million) In September 2007, the City Council authorized the City’s participation in the California Energy Commission and San Diego Gas and Electric On‐Bill Financing program. The loans were to bridge the financial gap between energy conservation project capital costs and available rebates for energy conservation equipment. The original loan amount was $665,884 for the On‐Bill Financing program. In fiscal year 2011‐12 additional loans were entered into with the California Energy Commission ($3.7 million) and San Diego Gas & Electric On‐Bill Financing Program ($256,302). 2842017-05-23 Agenda Packet Page 513 FY2018 City of Chula Vista Proposed Budget In December 2012, the City entered into a lease purchase agreement with Bank of America to purchase certain energy conservation equipment. The agreement would bridge the financial gap between the Municipal Streetlight Retrofit Project capital costs and the available rebates for energy conservation equipment. As of June 30, 2016 the outstanding balance is $1,636,034. CDBG Section 108 Loan ($7.2 million) The City entered into a contract for Loan Guarantee Assistance with the U.S. Department of Housing and Urban Development (HUD) as part of the Section 108 Loan Program in the amount of $9,500,000 in June 2008. The Section 108 Loan is an “advance” of future CDBG entitlement funds and as such is repaid with a portion of the City’s annual entitlement. Proceeds of the loan will be used to fund multiple capital improvement projects. Debt service payments will be made with future CDBG entitlements for 20 years. Miscellaneous Claims Payable ($22.5 million) The Miscellaneous Claims Payable represents the probable amount of loss as estimated by legal counsel and risk management staff due to worker’s compensation and general liability claims filed against the City. Compensated Absences ($7.2 million) The obligation for Compensated Absences represents the current dollar value of accumulated leave balances, primarily vacation leave, for employees that would have to be paid off if all permanent employees were terminated as of June 30, 2016. Advances From Other Funds ($48.6 million) The Successor Agency has entered into reimbursement agreements with the City to reimburse the City for certain lease payments made by the City under various lease agreements. The balance as of June 30, 2016, was $9.9 million City Council authorized loans to the Public Facilities DIF in the amount of $1,528,969 to help fund the Civic Center expansion. The loan will be repaid as funds become available, through the payment of DIF fees by developers. The balance was $1,488,267 at June 30, 2016. In accordance with Council Policy No. 220‐06, approved via Resolution 2015‐028, the financing costs shall be calculated using the City's pooled investment earning rate on a quarterly basis. Per Resolution 2015‐035 of the City Council, interfund loans from the Transportation Development Impact Fee to the Fire Suppression System expansion component of the Public Development Impact Fee were consolidated into one loan totaling $10,500,000. The balance for the loan was $8,150,862 at June 30, 2016. In accordance with Council Policy No. 220‐06, approved via Resolution 2015‐028, the financing costs shall be calculated using the City's pooled investment earning rate on a quarterly basis. City Council authorized a loan to Western PAD from Eastern PAD in the amount of $9,630,000 to acquire the 14.41 acre site located in the lower Sweetwater Valley owned by the Redevelopment Agency and $310,000 to acquire the 1.89 acre site located at Auto Park Place, Chula Vista. Per Resolution 2015‐035 of the City Council, these loans were consolidated. The loan will be repaid as funds become available, either as a result of credit acquisitions by the Agency or the payment of PAD fees by developers in western Chula Vista; in conjunction with Council Policy No 200‐06, approved via Resolution 2015‐028, the financing costs shall be calculated using the City's pooled investment earning rate on a quarterly basis. The balance was $9,288,457 at June 30, 2016. The Agency will ensure that PAD funds are repaid to fully fund the development of the park for which they were originally collected. The City Council authorized and set terms for loans from the Trunk Sewer fund to Salt Creek for $16,848,381, to the Storm Drain fund for $744,612, and $803,331 from the Sewer Facility fund for capital improvement projects, via Resolution 2015‐035. In accordance with Council Policy No. 220‐06, approved via Resolution 2015‐028, the financing costs shall be calculated using the City's pooled investment earning rate on a quarterly basis. The balance was $19,794,095 at June 30, 2016. General Fund Long‐Term Debt for Fiscal Year 2017‐18 The General Fund’s annual debt service “commitment” for the Certificates of Participation and the Lease Revenue Refunding Bond in fiscal year 2017‐18 is approximately $9.0 million, or 5.4% of the General Fund operating budget. However, it must be noted that 2852017-05-23 Agenda Packet Page 514 FY2018 City of Chula Vista Proposed Budget although this amount is truly a General Fund commitment, only $3.1 million will actually be paid from General Fund resources, with the remaining amount paid from available development impact fees and residential construction tax. The $3.1 million represents approximately 1.9% of the General Fund operating budget. The $9.0 million represents ongoing level debt service payments as depicted in the following chart. Annual Debt Service Obligation of the General Fund Fiscal Years 2006‐07 through 2035‐36 Note: 1) Actual payments are funded by the General Fund, Development Impact Fee Funds and residential construction tax however all debt service obligations are backed by the General Fund. 2) The 2002 COP was refunded in FY2013 and became the 2014 Refunding COP. The 2004 COP was refunded and the 2006 was partially refunded and became the 2015 Refunding COP. The 2006 COP was refunded and became the 2016 Refunding COP. The 2010 COP was refunded and became the 2016 Lease Revenue Refunding Bonds. 2862017-05-23 Agenda Packet Page 515 FY2018 City of Chula Vista Proposed Budget GANN Appropriations Limit Article XIIIB of the California Constitution, approved by the voters in 1979, imposed the concept of spending limits on local governments. This Constitutional provision and related implementing legislation specifies that annual increases in appropriations financed from "Proceeds of Taxes" are limited to a base year (1978‐ 79) amount increased annually by an inflation factor comprised of the change in population of the City combined with the greater of the change in new non‐ residential construction or the change in the California per capita personal income. By definition, "Proceeds of Taxes" includes such revenues as property taxes, sales and use taxes, utility users taxes, transient occupancy taxes, and state subventions. Revenues from other sources like fees/charges and federal grants are considered "Non‐Proceeds of Taxes" and are not subject to the annual spending limit. This calculation has always been perfunctory for the City of Chula Vista, since the proceeds of taxes for the City are far less than the statutory appropriations limit. The State Department of Finance and the San Diego County Assessor's Office are charged with providing the data necessary for local jurisdictions to establish their appropriations limit. According to these sources, for purposes of the fiscal year 2016‐2017 calculation, the population increased 0.66%. California per capita personal income increased by 5.37% and new non‐ residential construction increased by 1.0066%. Consequently, the California per capita personal income was used in the formula to compute the limit since this increase is the greater of the two amounts. Fiscal Year 2016‐17 Appropriations Limit The fiscal year 2016‐17 Appropriations Limit has been calculated as follows: Fiscal Year 2015‐16 Appropriations Limit 765,339,521$ Increased by an inflation factor composed of the increases in population and New non‐residential construction x 1.06065442 FISCAL YEAR 2016‐17 APPROPRIATIONS LIMIT 811,760,746$ Fiscal Year 2016‐17 Appropriation Limit 2872017-05-23 Agenda Packet Page 516 FY2018 City of Chula Vista Proposed Budget Proceeds of Taxes The "Proceeds of Taxes" as included in the fiscal year 2016‐17 Adopted Budget that are subject to the appropriations limit are estimated to be $95,873,998. Therefore the City has what is referred to as an appropriation "gap" of $715,886,748 ($811,760,746 ‐ $95,873,998). Simply stated, this means that the City could collect and spend up to $715,886,748 more in taxes during Fiscal Year 2016‐ 2017 without exceeding the Constitutional limit. Proceeds of Taxes Compared to Legal Spending Limit $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 FY2012‐2013 FY2013‐2014 FY2014‐2015 FY2015‐2016 FY2016‐2017Millions Proceeds of Taxes Appropriations Limit 2882017-05-23 Agenda Packet Page 517 FY2018 City of Chula Vista Proposed Budget Legal Debt Margin Under State law, the City has a legal debt limitation not to exceed 15% of the total assessed valuation of taxable property within City boundaries. As of June 30, 2016 the City’s legal debt limit is $917,099,949. In accordance with California Government Code Section 43605, only the City’s general obligation bonds are subject to this limit. The City of Chula Vista has no outstanding General Obligation Bonds. The table below summarizes the City’s debt limit margin. Computation of Debt Limit Margin Fiscal Years Ended 2014 through 2016 June 30, 2014 June 30, 2015 June 30, 2016 Total Assessed Valuation 21,646,268,909$ 23,090,440,353$ 24,455,998,641$ Conversion Percentage 25% 25% 25% Adjusted Assessed Valuation 5,411,567,227$ 5,772,610,088$ 6,113,999,660$ Debt Limitation Percentage 15%15%15% Debt Limit 811,735,084$ 865,891,513$ 917,099,949$ Total Debt Applicable to Limit: Pension Obligation Bonds ‐$ ‐$ ‐$ Legal Debt Margin 811,735,084$ 865,891,513$ 917,099,949$ The Government Code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981‐82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted by the State of California for local governments located within the State. 2892017-05-23 Agenda Packet Page 518 2902017-05-23 Agenda Packet Page 519 FY2018 City of Chula Vista Proposed Budget Accounting Systems and Budgetary Control The City of Chula Vista’s budget provides an overview of the fiscal and operational status of the City; highlighting policy issues, decisions, and proposed changes in service levels. The budget is comprised of a series of funds used to account for revenues and expenditures. These funds are generally categorized as governmental or proprietary funds. Governmental funds include activities associated with the operations of the City such as the provision of library, recreation, and public safety services. Special revenue funds, capital project funds, debt service funds, and the City’s general fund are different types of governmental funds. Proprietary funds are used to account for activities often found in the private sector including two fund types: enterprise funds and internal service funds. Operations of the development service and sewer systems are accounted for as enterprise funds. Examples of functions accounted for by internal service funds include fleet management and worker’s compensation. The budget document is organized around the following major funds – General Fund, Redevelopment Retirement Obligation Fund and Successor Agency to the Redevelopment Agency Funds, Sewer Funds, Fleet Service Funds, Capital Projects Funds, Debt Service Funds, and Other Funds. Details about each of these funds can be found in the corresponding sections of the document. City of Chula Vista Fund Structure Budgetary Funds Governmental Funds General Fund Debt Service Funds Capital Project Funds Special Revenue Funds Redevelopment Retirement Obligation Fund and Successor Agency to the Redevelopment Agency Funds Proprietary Funds Enterprise Funds Sewer Funds Development Service Fund Internal Service Funds 2912017-05-23 Agenda Packet Page 520 FY2018 City of Chula Vista Proposed Budget Each fund is considered an autonomous accounting entity. Funds are used to separate the various financial activities of the City and to demonstrate compliance with specific regulations, restrictions, or limitations. This may include demonstrating that restricted revenues are spent only for allowed purposes. The City’s accounting records and budget are prepared and maintained using a modified accrual basis of accounting, which follows the accounting practices for governmental units as recommended by the Governmental Accounting Standards Board. Basic City operations are accounted for in the City’s General Fund, with other activities accounted for in separate funds as required by law or determined by management discretion. Generally, revenues are recorded when measurable and available, and liabilities are recorded when incurred. In administering the City’s accounting systems, primary consideration is given to the adequacy of internal accounting controls, which include an array of administrative procedures. These controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, as well as the reliability of financial records for accurate and fair presentation of financial reports. The concept of reasonable assurance recognizes that the cost of specific controls should not exceed the benefits likely to be derived from exercising the controls, and that this evaluation necessarily involves estimates and judgments by management. It is believed that the City’s internal accounting controls adequately safeguard City assets and provide reasonable assurance of proper recording of financial transactions. The City Charter charges the Director of Finance with the responsibility to supervise and be responsible for the disbursement of all monies and have control over all expenditures to ensure that budget appropriations are not exceeded. The level of budgetary control, that is the level at which expenditures are not to exceed Council approved appropriations, is established at the department and expenditure category level (e.g., personnel services, supplies and services, capital). Any budget modification that would result in an appropriation increase requires City Council approval. The City Manager and Finance Director are jointly authorized to transfer up to $15,000 of appropriations between expenditure categories within a departmental budget. Any appropriations transfers between departments, in excess of $15,000, and transfers from CIP projects, require City Council approval. An encumbrance (commitment) accounting system is utilized as a technique to enhance budgetary control during the fiscal year. Appropriations encumbered (committed) at year‐end may be carried forward with City Manager approval and are available to be used for those commitments during the subsequent fiscal year. Unspent and unencumbered appropriations lapse at year‐end and become generally available for re‐ appropriation the following fiscal year. 2922017-05-23 Agenda Packet Page 521 FY2018 City of Chula Vista Proposed Budget List of Acronyms A ADA: Americans with Disabilities Act ALS: Advanced Life Support AMP: Asset Management Plan AMS: Asset Management System ARRA: American Recovery and Reinvestment Act ATP: Active Transportation Program B BIG: Business Improvement Grant BFDIF: Bayfront Development Impact Fee BMS: Building Management System BRT: Bus Rapid Transit BTA: Bicycle Transportation Account C CAD: Computer Aided Dispatch CalPERS: California Public Employees Retirement System CALTRUST: Investment Trust of California CAPPO: California Association of Public Purchasing Officers CBAG: California Border Alliance Group CDBG: Community Development Block Grant CEC: California Energy Commission CES: Conservation Environmental Services CFD: Community Facility District CIP: Capital Improvement Plan/Project/Program CLSA: California Library Services Act CMP: Corrugated Metal Pipe CMT: Constant Maturity Treasury CONF: Confidential COP: Certificate of Participation CPI: Consumer Price Index CTC: California Transportation Commission CVBMP: Chula Vista Bayfront Master Plan CVACF: Chula Vista Animal Care Facility CVEA: Chula Vista Employee’s Association CVPD: Chula Vista Police Department CVT: Chula Vista Transit D DASH: Dynamic After School Hours DIF: Development Impact Fee DMS: Drainage Management System DVP: Delivery Versus Payment E EEBG: Energy Efficiency Block Grant EOC: Emergency Operation Center ERAF: Educational Revenue Augmentation Fund EUC: Eastern Urban Center 2932017-05-23 Agenda Packet Page 522 FY2018 City of Chula Vista Proposed Budget F FCIP: Fire Company Inspection Program FDIC: Federal Deposit Insurance Corporation FF: Firefighters FHLB: Federal Home Loan Bank FHLMC: Federal Home Loan Mortgage Corporation FHWA: Federal Highway Administration FICB: Federal Intermediate Credit Bank FLB: Federal Land Bank FLSA: Fair Labor Standards Act FMS: Fleet Management System FNMA: Federal National Mortgage Association FPPC: Fair Political Practices Commission FREBE: Free Resource Energy Business Evaluation FSE: Fire Safety Engineering FTA: Federal Transit Administration FTE: Full‐Time Equivalent FY: Fiscal Year G GAAP: Generally Accepted Accounting Principles GDP: Gross Domestic Product GFOA: Government Finance Officers of America GGMS: General Government Management System GIS: Geographic Information System GMOC: Growth Management Oversight Committee GNMA: Government National Mortgage Association GUC: General Use Certificates H HBP: Highway Bridge Program HOV: High Occupancy Vehicle HR: Human Resources HSIP: Highway Safety Improvement Program HUD: Housing and Urban Development HVAC: Heating\Ventilation\Air Conditioning I IAFF: International Association of Firefighters ITS: Information and Technology Services L LAIF: Local Agency Investment Fund LAN: Local Area Network LRT: Light Rail Trolley M MGD: Million Gallons per Day MHZ: Megahertz MIS: Management and Information Systems\Services MLA: Master Lease Agreement MOU: Memorandum of Understanding MSCP: Multiple Species Conservation Plan MTDB: Metropolitan Transit Development Board MTS: Metropolitan Transit System 2942017-05-23 Agenda Packet Page 523 FY2018 City of Chula Vista Proposed Budget N NCD: Negotiable Certificate of Deposit NEP: Neighborhood Reinvestment Program NFPA: National Fire Protection Association O OSMS: Open Space Management System P PACE: Parcel Assessed Clean Energy PAD: Park Acquisition and Development PCI: Pavement Condition Index PFDIF: Public Facilities Development Impact Fees PLF: Public Library Foundation Act PLTP: Point Loma Treatment Plant PMS: Parks Management System POA: Police Officer’s Association PUC: Public Utilities Commission R RCS: Regional Communications System RCT: Residential Construction Tax RDA: Redevelopment Agency RFP: Request for Proposals RMS: Roadway Management System RTIP: Regional Transportation Improvement Program S SANDAG: San Diego Association of Governments SANDPIPA: San Diego Pooled Insurance Policy Association SBA: Small Business Association SBBRT: South Bay Bus Rapid Transit SGIP: Smart Growth Initiative Program SHOPP: State Highway Operations and Protection Program SLMA: Student Loan Marketing Association SR2s: Safe Routes to School SRO: School Resource Officer STRETCH: Safe Time For Recreation, Enrichment And Tutoring SWBAMLA: Southwest Border Anti‐Money Laundering Alliance T TABS: Tax Allocation Bonds TARBS: Tax Allocation Refunding Bonds TDA: Transportation Development Act TDIF: Transportation Development Impact Fee TOT: Transient Occupancy Tax TUT: Telephone Users’ Tax TVA: Tennessee Valley Authorities U UUT: Utility Users Tax V VLF: Vehicle License Fee 2952017-05-23 Agenda Packet Page 524 FY2018 City of Chula Vista Proposed Budget W WCE: Western Council of Engineers WMS: Wastewater Management System W‐TDIF: Western Transportation Development Impact Fee 2962017-05-23 Agenda Packet Page 525 FY2018 City of Chula Vista Proposed Budget Glossary A Accrual Basis of Accounting – A method of accounting by which transactions are recognized when they occur, regardless of the timing of cash receipts and disbursements. Accounting System – The collective set of records and procedures used to record, classify, and report information on the financial status and operations of the City. Accounts Payable – Amounts owed by the City to external entities for goods and services received. Accounts Receivable – Amounts due to the City from external entities for goods and services furnished. Adopted Budget – The title of the budget following its formal adoption by resolution of the City Council. Ad Valorem – In proportion to value, a basis for levy of taxes on property. Amended Budget – The title of the budget version that includes all amendments to the Adopted Budget approved by Council throughout the fiscal year. Appropriation – A legislative act by the City Council authorizing the expenditure of a designated amount of public funds for a specific purpose. Audit – An examination of City records and accounts by an external source to check their validity and accuracy. B Balanced Budget – The amount of budgeted expenditures is equal to or less than the amount of budgeted revenues plus other available sources. For budgeting purposes, the use of contingency reserves or use of fund balance will be considered revenue in defining a balanced budget. Bond – A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date. Budget – A spending plan and policy guide comprised of an itemized summary of the City’s probable expenditures and revenues for a given fiscal year. C Calendar Year (CY) – The 12‐month period from January through December. Capital Expenditures – A specific undertaking involving procurement, construction or installation of facilities or related equipment which improves, preserves, enhances or modernizes the City’s provision of municipal services, has a useful life of at least five years, and costs in excess of $10,000. Capital Improvement Program – An ongoing five‐year plan of single and multiple‐year capital expenditures which is updated annually. Capital Improvement Project (CIP) – Any major capital investment with a value of $50,000 or more and a minimum useful life of five years at a fixed location. CIPs may include construction or major repair of City buildings and facilities such as streets, roads, storm drains, traffic signals, parks, community centers, etc. Capital Project Funds – Funds that are utilized to account for resources used for the acquisition and construction of capital facilities by the City, with the exception of those assets financed by proprietary funds. Community Development Block Grant (CDBG) Funds – Funds received from the federal government and expenditures as prescribed under the Community Development Grant Program. D Debt Service Funds– Funds used for payment of interest and principal to holders of the City’s various debt instruments. Deferred Maintenance – A backlog of needed repairs to City facilities including facility maintenance, painting and structural repairs. 2972017-05-23 Agenda Packet Page 526 FY2018 City of Chula Vista Proposed Budget Depreciation – The expense incurred with the expiration of a capital asset. Direct Costs – Operational expenditures exclusive to a specific service or program. Discretionary Revenue – Revenues that are generated by general or specific taxing authority such as Property or Sales Taxes. E Encumbrance – The designation or reserving of funds to buy an item or service. Enterprise Funds – Funds established to account for specific services funded directly by fees and charges to users such as sewer services. These funds are intended to be self‐supporting. Expenditure – The actual outlay of monies set aside by appropriation for identified goods and services. F Fiscal Year (FY) – The twelve‐month period beginning July 1st and ending June 30th of the subsequent calendar year. Fixed Assets – An asset with a useful life greater than three years. Fringe Benefits – This consists of the costs to provide employee benefits that include the flexible benefit program, insurance, and retirement. Full‐time Equivalent Positions (FTE) – The conversion of part‐time, temporary, or volunteer positions to a decimal equivalent of a full‐time position based on an annual amount of 2,080 hours worked. Fund – A set of interrelated accounts to record revenues and expenditures. Fund Balance – The excess of an entity’s assets over its liabilities. A negative fund balance is sometimes referred to as a deficit. G Generally Accepted Accounting Principles – A uniform set of minimum standards for external financial accounting and reporting. Gann Appropriation Limit – A State of California mandated appropriation limit imposed on local jurisdictions. General Fund – The City’s main operating fund that is used to pay for City services. General Plan – The fundamental policy document that guides the City’s future growth and development. General Revenue – See Discretionary Revenues. Governmental Funds – Funds that are typically used to account for tax‐supported activities. These include the general fund, special revenue funds, debt service funds, and capital project funds. Grants – A contribution by a government or other organization to provide funding for a specific project. Grants can either be classified as capital projects or programmatic, depending on the grant. I Indirect Cost – Costs that are essential to the operation of the City but not exclusive to any specific service or program. Indirect costs are primarily associated with support departments such as City Clerk, City Attorney, Administration, Management Information Systems (MIS), Human Resources, and Finance. Infrastructure – Basic physical assets such as buildings, streets, sewers, and parks. Interest Expense – Interest costs paid by Chula Vista on loans and bonds. Internal Service Funds– Funds that are used to finance and account for goods, special activities, and services performed by one City department for other City departments on a cost reimbursement basis. 2982017-05-23 Agenda Packet Page 527 FY2018 City of Chula Vista Proposed Budget L Levy – To impose of collect a tax, special assessments, or charges for the support of City services. Liability – Debt or other legal obligations arising out of past transactions that will be liquidated, renewed, or refunded at some future date. M Memorandum of Understanding – A document detailing the outcomes of labor negotiations between the City and its various bargaining units. Modified Accrual Basis of Accounting – A method of accounting in which revenues are recognized in the period they become available and measurable, and expenditures are recognized in the period the associated liability is incurred. Municipal Code – A collection of ordinances approved by City Council. N Non‐Capital Improvement Project Expenditures – Expenditures in this category are for large maintenance costs, studies and various community outreach programs. By their nature these maintenance upkeeps and programs are expended beyond a one year period. Recording these types of expenditures in an operating type budget would skew the comparison of budgets from year to year, because of this, the City finds it more efficient to record these types of expenditures in the Non‐Capital Improvement Project category. O Operating Budget – Costs associated with the on‐going municipal services. Ordinance – A formal legislative enactment by the City Council. Other Expenditures – All budgeted expenditures that do not fall into one of the following primary expenditure categories: Personnel, Supplies and Services, Utilities, Transfers Out, CIP and Non‐CIP Projects, and Capital. P Personnel Services Expenditures – Expenses related to employee compensation including salaries, wages, and benefits. Program Revenue – Revenues generated by a given activity. Proposed Budget – The title of the budget prior to its formal adoption by resolution of the City Council. Proprietary Funds – Funds used to account for a government’s business‐type activities, which are supported, at least in part, by fees or charges. R Reserves – The portion of the General Fund balance set aside for contingencies. Resolution – A special order of the City Council that requires less legal formality than an Ordinance. Revenue – Funds received from various sources to finance expenditures. S Sewer Funds– Funds that account for revenues and expenditures related to the City’s sewer programs, including maintenance and expansion of the City’s conveyance system and payment of Metro Sewer treatment costs. Special Revenue Funds – Funds that are used to account for proceeds derived from specific revenues sources, which are legally restricted to expenditures for special purposes. (e.g. Transportation Funds, parking Funds, Public Safety Funds) Spending Plan – A preliminary budget approved by Council contingent upon subsequent adoption of appropriations. Supplies and Services Expenditures – Expenditures for supplies required for the daily operation of the City and for contractual and professional services. 2992017-05-23 Agenda Packet Page 528 FY2018 City of Chula Vista Proposed Budget T Transfers Out Expenditures – Expenditures in this category are the authorized exchanges of cash, positions, or other resources between organizational units. U Utilities Expenditures – Expenses related to the consumption of services including electricity, natural gas, water, and telephone services. Y Yield – The rate of return earned on an investment based on the price paid. 3002017-05-23 Agenda Packet Page 529 City of Chula Vista Staff Report File#:17-0171, Item#: 11. CONSIDERATION OF APPROVING A LICENSE AND FACILITY OVERSIGHT AGREEMENT TO OPERATE A CULTURAL ARTS SPACE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LICENSE AND FACILITY OVERSIGHT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND FRANCISCO GARCIA-VELASQUEZ, DBA THE INDUSTRY, TO OPERATE A CULTURAL ARTS SPACE ON AN UNIMPROVED CITY-OWNED PARCEL LOCATED AT 224 THIRD AVENUE RECOMMENDED ACTION Council adopt the resolution. SUMMARY The cultural arts space on Third Avenue (Arts Space) would be a non-traditional community space where the arts would be used to animate an unimproved parcel in downtown Chula Vista (224 Third Avenue). The proposed concept aligns with the strategies and initiatives of the Cultural Arts Master Plan (Master Plan) which support the development of non-traditional spaces where artists can showcase their work, hold performances, and where arts and culture can be experienced (Master Plan Goal 5, Strategy 2, Initiative B). The Arts Space would also fill an existing gap in arts and culture venue space in Chula Vista and the South Bay region, as a whole. Francisco Garcia-Velasquez, DBA The Industry, has agreed to manage and operate the Arts Space pursuant to a License and Facility Oversight Agreement (Attachment 1). ENVIRONMENTAL REVIEW Environmental Notice The Project qualifies for a Class 32 Categorical Exemption pursuant to Section 15332 (Infill Development Projects) of the California Environmental Quality Act State Guidelines. Environmental Determination 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 32 categorical exemption pursuant to Section 15332 Infill Development Projects of the State CEQA Guidelines. Thus, no further environmental review is necessary. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION Cultural arts has emerged as a powerful and energizing factor in the economic development of cities. In cities where the arts are nurtured and supported, there is higher average growth, increased community pride, reduction in crime, and an increase in tourism. Understanding the importance of the City of Chula Vista Printed on 5/18/2017Page 1 of 4 powered by Legistar™2017-05-23 Agenda Packet Page 530 File#:17-0171, Item#: 11. community pride, reduction in crime, and an increase in tourism. Understanding the importance of the arts, in September 2016, the City Council adopted the Cultural Arts Master Plan. Staff has successfully been working with various artists, arts organizations, local businesses, and event promoters to support, facilitate, and promote cultural arts happenings in Chula Vista. To further support cultural arts and the revitalization of Third Avenue, staff proposes to site shipping containers on an unimproved parcel and repurpose the containers as community arts space. Programming of the Arts Space would be innovative and cross-disciplinary, and would include, music, art installations, dance and video performances, lectures, art forums, and a variety of other arts happenings. Chula Vista residents and Chula Vista based organizations would be provided low to no cost opportunities to use the space. Activating the area with the arts would attract a greater number and more diverse population of people to Third Avenue. More people and a diverse arts scene would help to positively shape the physical, economic, and social character of Third Avenue. Francisco Garcia-Velasquez (Licensee), DBA The Industry, would operate and manage the Arts Space pursuant to a License and Facility Oversight Agreement. Over the past two years, the Licensee, has operated and managed cultural arts space located in an industrial space on the east side of Chula Vista, known as The Industry. The Industry hosted a variety of artistic events and activities, including live music, visual storytelling, and art exhibitions. The Industry, was one of the few, if not only, community cultural art spaces in the area and quickly became known as a safe place where all persons could create, collaborate, and connect. The Industry outgrew the location on the east side and would like to re-open on the west side. In support of this public good, the City would assist in coordination of community participation in developing the Arts Space, leveraging in-kind services and donations, and assisting in the procurement of the shipping containers. Staff would also work cooperatively with The Industry, in marketing and promoting the Arts Space. Leveraging Resources Staff has been working with the Licensee and local businesses in securing in-kind resources, donation of materials, and procurement of the shipping containers for the Arts Space. Staff, in collaboration with the Licensee, will facilitate community input and participation in the build of the Arts Space. Community Collaborations Over the past few months, staff has collaborated with a variety of stakeholders on developing the concept for the Arts Space. High Tech High School Chula Vista (HTHCV) assisted staff by researching how to repurpose shipping containers for functional use, collaborated on the site design for the Arts Space, and the students developed a scaled model and google sketch-up of the Arts Space concept. Staff has also coordinated with the Third Avenue Village Association (TAVA) on marketing and promotion strategies and ways to coordinate cross sector collaboration between The Industry and Third Avenue businesses. Local businesses have also provided their support in developing the Arts Space. O’Neill Construction assisted staff and HTHCV with developing the design concept and has secured the donation by Mountain West Real Estate of one shipping container for use on the site. O’Neill Construction has agreed to donate in-kind contractor services to oversee the installation of the containers, coordination and supervision of all on-site design and construction work, and to assist in the repurposing and customization of the containers for arts space. O’Neill Construction has also coordinated the donation of towing services by Road One Towing to move on the shipping container(s). Javier Jimenez, with MJC Construction has agreed to provide and install the fencing and to assist with site improvements, including making entry into the City of Chula Vista Printed on 5/18/2017Page 2 of 4 powered by Legistar™2017-05-23 Agenda Packet Page 531 File#:17-0171, Item#: 11. provide and install the fencing and to assist with site improvements, including making entry into the site ADA accessible. CONCLUSION Third Avenue is the heart of Chula Vista’s historic downtown. A resurgence of activity is occurring along Third Avenue with new shops, restaurants, and the arrival of the craft brewing industry. Infusing cultural arts into the up and coming downtown scene would help to create a sense of place, would draw visitors to Third Avenue from within and around the region, and would provide another way to further connect the community. In addition, the intention is to further grow and strengthen cross sector collaboration between the artistic community and local businesses to further promote Third Avenue. The Licensee has agreed to manage and maintain the Arts Space pursuant to the License and Facility Oversight Agreement. DECISION-MAKER CONFLICT No Property within 500 feet Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100,et seq.). 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 Arts Space would support the goal of Economic Vitality by assisting the City in building Chula Vista’s identity as a cultural arts destination. The Arts Space would also support the goal of Connected Community by providing a safe place where all persons of all abilities may create, collaborate, and connect. CURRENT YEAR FISCAL IMPACT No fiscal impact is anticipated as the lot is vacant. No appropriation of general funds would be required as In-kind resources, donations, community participation, and possibly grant funds will be used to create the Arts Space. ONGOING FISCAL IMPACT No future expenditures are anticipated with approval of this item. The Licensee would assume all responsibility of the Arts Space. The Arts Space could possibly provide a future revenue source for the City’s cultural arts program. The Licensee has agreed to assist staff with hosting fundraising for cultural arts activities and events. ATTACHMENTS City of Chula Vista Printed on 5/18/2017Page 3 of 4 powered by Legistar™2017-05-23 Agenda Packet Page 532 File#:17-0171, Item#: 11. 1. License and Facility Oversight Agreement Staff Contact:Lynnette Tessitore; Cultural Arts Manager City of Chula Vista Printed on 5/18/2017Page 4 of 4 powered by Legistar™2017-05-23 Agenda Packet Page 533 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LICENSE AND FACILITY OVERSIGHT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND FRANCISCO GARCIA-VELASQUEZ, DBA THE INDUSTRY, TO OPERATE A CULTURAL ARTS SPACE ON AN UNIMPROVED CITY-OWNED PARCEL LOCATED AT 224 THIRD AVENUE WHEREAS, shipping containers would be placed on the unimproved parcel located at 224 Third Avenue, APN: 568-044-19-00; and WHEREAS, the shipping containers would be repurposed as community cultural arts space (Arts Space); and WHEREAS, the Arts Space would fill an existing gap in arts and culture venue space in Chula Vista, and the South Bay region; and WHEREAS, the Arts Space would be where artists, arts organizations, and the community could create, collaborate, and connect; and WHEREAS, the Arts Space programming would be innovative, cross-disciplinary and would help to infuse arts and culture on Third Avenue; and WHEREAS, the Arts Space programming would include music, art exhibitions, dance performances, lectures, film and art forums, and a variety of other arts happenings; and WHEREAS, the Arts Space would be available as a free to low cost arts space for the Chula Vista residents and Chula Vista based arts organizations; and WHEREAS, the Arts Space would support the goal of Economic Vitality by assisting the City in building Chula Vista’s identity as a cultural arts destination; and WHEREAS, the Arts Space would support the goal of Connected Community by providing a place where all persons of all abilities may create, collaborate, and connect; and WHEREAS, Francisco Garcia-Velasquez (Licensee), DBA The Industry, agrees to operate and maintain the Arts Space pursuant to a License and Facility Oversight Agreement; 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 32 categorical exemption pursuant to Section 15332 Infill Development Projects of the State CEQA Guidelines. Thus, no further environmental review is necessary. 2017-05-23 Agenda Packet Page 534 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby approves the License and Facility Oversight Agreement between the City of Chula Vista and the Licensee in the form presented, with such minor modifications as may be required or approved by the City Attorney, to operate the Arts Space located at 224 Third Avenue, Chula Vista CA 91910, a copy of which shall be kept on file in the Office of the City Clerk and authorizes and directs the City’s Real Property Manager to execute the same. Presented by: Approved as to form by: Richard A. Ryals Glen R. Googins Real Property Manager City Attorney 2017-05-23 Agenda Packet Page 535 Page 1 5/18/2017 The Industry License Agreement LICENSE AND FACILITY OVERSIGHT AGREEMENT THIS LICENSE AND FACILITY OVERSIGHT AGREEMENT (Agreement) is entered into effective as of this _____ day of ____________, 2017 (Effective Date) by and between the CITY OF CHULA VISTA, a chartered municipal corporation (City), and FRANCISCO GARCIA- VELASQUEZ, DBA The Industry, a sole proprietorship (Licensee), with reference to the following facts: R E C I T A L S A. The City owns a vacant lot located at 224 Third Avenue, APN: 568-044-1900, (the “Lot”) (Exhibit “A”), Chula Vista; and B. The City and Licensee desire to repurpose the Lot as community cultural arts space (Arts Space); and C. The Arts Space would fill an existing gap in arts and culture venue space in Chula Vista, and the South Bay region; and D. The Arts Space programming would include music, art exhibitions, dance performances, lectures, film and art forums, and a variety of other arts happenings; and E. The Arts Space would be available as a community arts space for a variety of artists and arts organizations and as a free to low cost arts space for Chula Vista residents and Chula Vista based arts organizations; and F. In order to support this community benefit, the City is willing to license the Lot to Licensee, under the terms, covenants, conditions and provisions contained herein. NOW THEREFORE, in consideration of the above Recitals for the public benefit of the City, its residents and visitors; for the mutual benefit of the City and Licensee; and for other good and valuable consideration, the parties hereto mutually agree as follows: SECTION 1: GRANT OF LICENSE AND LICENSEE DUTIES 1.1 Premises. Subject to the terms, covenants, conditions and provisions hereof, City hereby grants Licensee a license to access and use the Lot, for those uses specifically identified in section 1.2 below. 1.2 Uses. It is expressly agreed that the Lot shall be used by Licensee solely and exclusively for the purpose of cultural arts, and for such other related or incidental purposes as may be first approved in writing by the City’s Cultural Arts Manager or the City’s Real Property Manager, and for no other purpose whatsoever. The Lot will be made available to Chula Vista residents and Chula Vista based arts organizations, including schools for free to low cost. Said costs shall be subject to approval by the City’s Cultural Arts Manager or designee. All activities on the Lot shall provide for a large range of artistic expression that is mindful of all segments of the community and appropriateness of the audience age group. Uses shall not cause offence, such as depictions of violence nor include defaming or obscene material as defined by the U.S. Supreme Court. Activities that may cause bodily injury (e.g. crowd surfing, stage diving, etc. 2017-05-23 Agenda Packet Page 536 Page 2 5/18/2017 The Industry License Agreement are prohibited). Licensee is authorized by the City to market The Industry but Licensee shall not have, and this Agreement does not convey to Licensee exclusive marketing or use rights to the Lot. Licensee covenants and agrees to use the Premises only for the above specified purpose and to diligently pursue said purpose throughout the term hereof. In the event that Licensee fails to use the Lot on a regular basis or uses the Lot for purposes not expressly authorized herein, the Licensee shall be deemed in default under this Agreement. 1.3 Reservation of Rights. City shall not unreasonably or substantially interfere with Licensee use of the Lot while Licensee is using the Lot as provided herein. However, in addition to any and all other rights, title and interest in the Lot, the City specifically retains the following rights: a. Right to Enter. City has the right, but not the obligation, to enter the Lot for the purpose of performing maintenance, inspections, repairs or improvements, or developing municipal resources and services. b. Events. The City has the right to use for itself, and to make the Lot available for public and private use as it deems appropriate, excluding Licensee’s personal property. The parties hereto agree to coordinate such activities to avoid conflicts. 1.4 Licensee Responsibilities for Lot Oversight. In consideration of City’s grant to Licensee of the license rights described herein, Licensee agrees to provide facility oversight services to the Lot as more particularly described in Section 3 below. SECTION 2: TERM 2. 1 Term. The term of this Agreement shall be one year commencing on the effective date of this Agreement. a. Options to Extend. The City, at its sole discretion, may grant the Licensee up to two additional one-year terms. Unless otherwise mutually agreed by the parties in writing, the terms and conditions of this Agreement shall remain in effect during the extended term. If City for any reason cannot deliver possession of the Lot to Licensee at the commencement of the term, or if during the term of this Agreement Licensee is dispossessed for any reason whatsoever, City shall not be liable to Licensee for any loss or damage, including compensatory or punitive, resulting therefrom, and Licensee hereby waives and releases the City from and against any claims for loss or damage. 2. 2 Termination. Notwithstanding any other remedies provided by this Agreement, City has the right, at its sole discretion, without cause, to terminate this Agreement and the license granted herein, upon ninety (90) days written notice to Licensee. Licensee shall also have the right to terminate this Agreement upon ninety (90) days written notice to City. a. Termination for Cause. Notwithstanding the foregoing, in the event that Licensee has breached any material provision of this Agreement, and has not cured the same in accordance with Section 7.10 herein, in addition to any other remedies provided by law or equity, the City may terminate this Agreement upon ten (10) days written notice. 2017-05-23 Agenda Packet Page 537 Page 3 5/18/2017 The Industry License Agreement 2. 3 Surrender of Premises. At the expiration or earlier termination of this Agreement, Licensee shall surrender the Lot to City free and clear of all liens and encumbrances, except those liens and encumbrances which existed on the Effective Date of this Agreement. The Lot, when surrendered by Licensee, shall be in a safe and sanitary condition and shall be in as good or better condition as the condition at the commencement of this Agreement, absent normal wear and tear. SECTION 3: CONSIDERATION FOR LICENSE – FACILITY OVERSIGHT 3.1 Consideration. In consideration of the use of the Lot Licensee shall provide cultural art space and services for the benefit of the community as set forth in the Cultural Arts Master Plan and pursuant to the City’s Municipal Code. 3.2 Facility Oversight. Licensee shall be responsible for controlling access to and from the Lot and insuring that employees act in a professional manner that does not damage the image of or reflect negatively on the City. Licensee shall also be responsible for maintenance and upkeep of the Lot, all improvements, shipping containers, and any other associated appurtenances. All shall be kept attractive, good, neat, in working and orderly condition during the term of this Agreement as more particularly provided is Section 6.3 hereof. SECTION 4: INSURANCE RISKS/SECURITY 4.1 Indemnity. a. To the maximum extent allowed by law Licensee hereby agrees to defend, indemnify, and hold the City, its City Council, directors, officers, employees, agents and/or volunteers, harmless from and against any and all liability or claim of liability, loss or expense, including defense costs and legal fees and claims for damages of whatever character, nature and kind, whether directly or indirectly arising from or connected with, or related to this Agreement or an act or omission of Licensee, or any employee, agent, invitee, contractor of Licensee, or other person acting by or on behalf of Licensee on or about the Lot, including, but not limited to, liability, expense, and claims for bodily injury, death, personal injury, or property damage, and any related attorneys’ fees or court costs. This indemnity provision does not include any claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arising from the sole negligence or sole willful misconduct of the City, its officers, employees, or agents. 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 employees which may be in combination with the active or passive negligent acts or omissions of the Licensee, its employees, agents or officers b. Costs of Defense and Award. Included in the obligations in Section a , above, is the Licensee’s obligation to defend, at Licensee’s own cost, expense and risk, any and all aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its City Council, directors, officials, officers, employees, agents and/or volunteers. Licensee shall pay and satisfy any judgment, award or decree that may be rendered against City or its City 2017-05-23 Agenda Packet Page 538 Page 4 5/18/2017 The Industry License Agreement Council, directors, officials, officers, employees, agents and/or volunteers, for any and all legal expense and cost incurred by each of them in connection therewith. c. Insurance Proceeds. Licensee’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its City Council, directors, officials, officers, employees, agents, and/or volunteers. d. Declarations. Licensee’s obligations under Section 4 shall not be limited by any prior or subsequent declaration by the Licensee. e. Enforcement Costs. Licensee agrees to pay any and all costs City incurs enforcing the indemnity and defense provisions set forth in Section 4. f. Survival. Licensee’s obligations under Section 4 shall survive the termination of this Agreement. 4.2 Insurance. Licensee, at his/her sole expense shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder and the results of that work by the Licensee, his agents, representatives, employees or subcontractors. MINIMUM SCOPE AND LIMIT OF INSURANCE a. Coverage shall be at least as broad as: 1. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 12 07 covering CGL on an “occurrence” basis, including products-completed operations, personal & advertising injury, with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. 2. Automobile Liability: ISO Form Number CA 00 01 covering any auto (Code 1), or if Licensee has no owned autos, hired, (Code 8) and non- owned autos (Code 9), with limit no less than $1,000,000 per accident for bodily injury and property damage. 3. Workers’ Compensation: as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. If the Licensee maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Licensee. b. Other Insurance Provisions: The insurance policies are to contain, or be endorsed to contain, the following provisions: 2017-05-23 Agenda Packet Page 539 Page 5 5/18/2017 The Industry License Agreement 1. Additional Insured Status The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Licensee including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Licensee’s insurance at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10 and CG 20 37 if a later edition is used). Specifically, endorsement must not exclude Products / Completed Operations. 2. Primary Coverage For any claims related to this Agreement, the Licensee’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Licensee’s insurance and shall not contribute with it. 3. Notice of Cancellation Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City. 4. Waiver of Subrogation Licensee hereby grants to City a waiver of any right to subrogation which any insurer of said Licensee may acquire against the City by virtue of the payment of any loss under such insurance. Licensee agrees to obtain any endorsement that may be necessary to effect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer. 5. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by the City. The City may require the Licensee to purchase coverage with a lower deductible or retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. 6. Acceptability of Insurers Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City. 7. Claims Made Policies If any of the required policies provide claims-made coverage: a. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work. b. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work. 2017-05-23 Agenda Packet Page 540 Page 6 5/18/2017 The Industry License Agreement c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the Effective Date, the Licensee must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work. 8. Verification of Coverage Licensee shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Licensee’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time. 9. Special Risks or Circumstances City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances. 4.3 Accident Reports. Licensee shall report to the City’s Cultural Arts Manager or designee within 24 hours any accident causing any property damage or any serious injury to persons on or about the Lot. This report shall contain the names and addresses of the parties involved a statement of the circumstances, the date and hour, the names and addresses of any witnesses and other pertinent information. SECTION 5: TERMS AND CONDITIONS OF OCCUPANCY 5.1 Form of Agreement. This Agreement is a limited License for the use of the Lot for those particular purposes identified in Section 1.2. Nothing in this Agreement shall be interpreted to grant any interest in the Lot other than that specified in this Agreement. At no time shall the Licensee’s limited interest in the Lot ripen into a leasehold, easement or fee interest with a claim or right to exclusive possession thereof. 5.2 Right to Occupy. Licensee’s right to occupy the Lot may be terminated by City at any time if Licensee fails to satisfactorily perform the improvement, maintenance, and upkeep duties or responsibilities of Licensee set forth hereunder. City reserves the right to terminate this Agreement as may be provided for elsewhere herein. 5.3 Taxes. Licensee shall pay, before delinquency, any taxes, assessments, and fees assessed or levied upon Licensee or the Lot, including the land, any buildings, structures, machines, equipment, appliances, or other improvements or property of any nature whatsoever erected, installed, or maintained by Licensee or levied by reason of the business or other Licensee activities related to the Lot, including any licenses or permits. Licensee recognizes and agrees that this Agreement may create a possessory interest subject to property taxation, and that Licensee may be subject to the payment of taxes levied on such interest, and that Licensee shall pay all such possessory interest taxes prior to their delinquency. 2017-05-23 Agenda Packet Page 541 Page 7 5/18/2017 The Industry License Agreement 5.4 Hours of Operation. The hours of operation shall conform to Chula Vista Municipal Code 19.68.030. Licensee or Licensee’s staff will conduct business and be present when the Lot is open and during all events. Licensee shall provide access control to the Lot in a manner approved by City to prevent unauthorized access to the Lot during Licensee’s hours of operation. 5.5 Utilities. Licensee agrees that utilities are available under this License and the cost thereof shall be borne by the Licensee. Use of said utilities shall be only as needed to carry on the operations permitted under this License. 5.6 Business License. Licensee shall maintain a valid City of Chula Vista Business License at all times during operations covered by this License. SECTION 6: IMPROVEMENTS/ALTERATIONS/REPAIRS 6.1 Acceptance of Lot. The Lot is being offered to Licensee in an As-Is and Where- Is condition without any warranty, expressed or implied. Licensee represents and warrants that it has independently inspected the Lot and made all tests, investigations, and observations necessary to satisfy itself of the condition of the Lot and all improvement appurtenant thereto. Licensee acknowledges it is relying solely on such independent inspection, tests, investigations, and observations in making this Agreement. Licensee further acknowledges that the Lot is in the condition called for by this Agreement, and that Licensee does not hold City responsible for any defects, whether latent or patent, in the Lot. 6.2 Waste, Damage, or Destruction. Licensee shall give notice to the City’s Cultural Arts Manager or designee of any fire or other damage that occurs on the Lot within twenty four (24) hours of such fire or damage. Licensee shall not commit or suffer to be committed any waste or injury or any public or private nuisance, to keep the Lot, adjoining sidewalks, and other public areas, clean and clear of refuse and obstructions, and to dispose of all garbage, trash, and rubbish in a manner satisfactory to City. If the Lot shall be damaged by any cause which puts the Lot into a condition which is not decent, safe, healthy and sanitary, Licensee agrees to make or cause to be made full repair of said damage and to restore the Lot to the condition which existed prior to said damage; or, at City's option, and upon receipt of written demand thereof, Licensee agrees to clear and remove from the Lot all debris resulting from said damage and repair the Lot in accordance with plans and specifications previously submitted to City and approved in writing in order to replace in kind and scope the improvements which existed prior to such damage. Licensee shall be responsible for all costs incurred in the repair and restoration, or rebuilding of the Lot. Licensee shall not cause or permit any hazardous material to be used, stored, transported, generated, or disposed in or about the Lot by Licensee, Licensee’s agents, employees, contractors, or invitees. “Hazardous Material” means any hazardous, toxic, or infectious substance, material, or waste, which is or becomes regulated by any local governmental entity, the State of California, or the United States government under any law, regulation or ordinance. 6.3 Maintenance. Licensee agrees to provide periodic maintenance of the Lot, improvements, shipping containers, and any other associated appurtenances throughout the term of this Agreement. Licensee shall also be responsible for maintenance of the Lot as follows: periodic cleaning and sweeping/mopping as necessary. Licensee shall make 2017-05-23 Agenda Packet Page 542 Page 8 5/18/2017 The Industry License Agreement customary and usual maintenance necessary to maintain and preserve the Lot. Licensee shall remove and lawfully and properly dispose of all garbage, litter, trash, debris, rubbish, and graffiti from or about the Lot, adjoining sidewalks, and other public areas, on a daily basis. All maintenance and other Licensee duties set forth herein shall, during the term hereof, be done at Licensee sole cost and expense and City shall not be called upon for any outlay or expense related thereto. Major maintenance and/or repair issues must be referred to the City’s Cultural Arts Manager or designee for evaluation prior to any work being performed or cost therefore incurred. City at its sole discretion shall determine what work shall be performed and inform Licensee thereof so that Licensee can complete said work. City at its sole discretion may undertake and complete major maintenance and/or repairs that are not a direct result of Licensee’s actions. If at any time during the term of this Agreement, City reasonably determines that the Lot is not in a decent, safe, healthy, and sanitary condition, City may, at its sole discretion and option, terminate this Agreement upon written notice to Licensee and regain possession of the Lot from Licensee. If the condition is proximately caused by Licensee’s use of the Lot, City may upon written notice to Licensee, have any necessary maintenance work done in order to place the Lot back to a decent, safe, healthy, and sanitary condition at the expense of Licensee. In such event, City shall provide Licensee written notice and itemized billing showing the work performed and Licensee shall make payment to City no later than thirty (30) days after receipt of said notice and billing. The rights reserved in this Section 6.3 shall not create any obligations on City or increase obligations elsewhere in this Agreement imposed on City. The provisions of this Section 6.3 shall survive the expiration or earlier termination of this Agreement. 6.4 Improvements/Alterations. No improvements, structures, or installations shall be constructed on the Lot, and the Lot may not be altered by Licensee without prior written approval by the City. This provision shall not relieve Licensee of any obligation under this Agreement to maintain the Lot in a decent, safe, healthy, and sanitary condition, including structural repair and restoration of damaged or worn improvements. City shall not be called upon to, or be obligated by this Agreement to make or assume any expense for any existing improvements or alterations. 6.5 Liens. Licensee shall not, directly or indirectly, create, incur, assume or suffer to exist any mortgage, pledge, lien, charge, encumbrance, or claim on or with respect to all or any portion of the Lot without the prior written consent of the City’s Property Manager. Licensee shall promptly, at its own expense, take such action as may be necessary to duly discharge or remove any such mortgage, pledge, lien, charge, encumbrance or claim on or with respect to all or any portion of the Lot for which Licensee does not have the prior written consent of the City’s Property Manager. 6.6 Signs. Licensee will be allowed one banner advertising the business and indicating Licensee’s hours of operation. Licensee shall not erect or display any other banners, pennants, flags, posters, signs, decorations, marquees, awnings, or similar devices or advertising on or about the Lot without the prior written consent of City. If any such unauthorized item is found on the Lot, Licensee shall remove the item at its expense within twenty-four (24) hours of written notice thereof by City, or City may thereupon remove the item at Licensee’s cost. 6.7 Ownership of Improvements. Any and all improvements, structures, and installations or additions to the Lot now existing or constructed on the Lot by Licensee shall at Agreement expiration or termination be deemed to be part of the Lot and shall become, at City's 2017-05-23 Agenda Packet Page 543 Page 9 5/18/2017 The Industry License Agreement option, City's property, free of all liens and claims except as otherwise provided in this Agreement. If the City chooses not to accept improvements made by Licensee, during the term of this License, and prefers to have such improvements removed, Licensee shall do so at its sole cost and expense. If Licensee does not remove said improvements at request of City, City may upon written notice to Licensee, have any improvements not accepted by City removed at the expense of Licensee. In such event, City shall provide Licensee written notice and itemized billing showing the work performed and Licensee shall make payment to City no later than thirty (30) days after receipt of said notice and billing. The rights reserved in this Section 6.7 shall not create any obligations on City or increase obligations elsewhere in this Agreement imposed on City. The provisions of this Section 6.7 shall survive the expiration or earlier termination of this Agreement 6.8 Breach by Licensee. Licensee’s refusal or failure to meet its obligations under this Section 6 shall be deemed a breach of this Agreement, and in such event, City may, in addition to any other remedies it may have at law or equity, terminate this Agreement pursuant to the provision of Section 7.10 or elsewhere herein. SECTION 7: GENERAL PROVISIONS 7.1 Notices. All notices, demands, requests, consents or other communications which this Agreement contemplates or authorizes, or requires or permits either party to give to the other, shall be in writing and shall be personally delivered or mailed, postage prepaid, to the respective party as follows: To City: To Licensee: Rick Ryals Francisco Garcia-Velasquez Real Property Manager 157 Twin Oaks Circle City of Chula Vista Chula Vista, CA 91910 276 Fourth Avenue Chula Vista, CA 91910 Phone: 619-708-0561 Either party may change its address by notice to the other party as provided herein. Communications shall be deemed to have been given and received on the first to occur of: (i) actual receipt at the offices of the party to whom the communication is to be sent, as designated above; or (ii) three working days following the deposit in the United States Mail of certified mail, postage prepaid, return receipt requested, addressed to the offices of the party to whom the communication is to be sent, as designated above, or (iii) actual receipt if made by recognized reliable currier service who maintains a receipt of delivery. 7.2 City Approval. The City’s Property Manager or the City’s Cultural Arts Manager or designee (as so indicated herein) shall be the City's authorized representative in the interpretation and enforcement of all work performed in connection with this Agreement. 7.3 Nondiscrimination. Licensee agrees not to discriminate in any manner against or segregation of any person or persons, on account of race, color, religion, sex, familiar status, national origin, ancestry, age, disability or sexual orientation in the use, occupancy, tenure or enjoyment of the Lot, nor shall Licensee itself, or any person claiming under or through it, 2017-05-23 Agenda Packet Page 544 Page 10 5/18/2017 The Industry License Agreement establish or permit such practice or practices of discrimination or segregation with reference to the use or occupancy of the Lot. 7.4 Equal Opportunity. Licensee shall assure applicants are employed and that employees are treated during employment without regard to race, familial status, color, religion, sex or national origin. Licensee hereby certifies to City that Licensee shall comply throughout the term of this Agreement with Title VII of the Civil Rights Act of 1964, as amended, the California Fair Employment Practices Act, and any other applicable Federal, State and Local law, regulation and policy (including without limitation those adopted by City) related to equal employment and opportunity including any such law, regulation, and policy hereinafter enacted. a. Compliance and performance by Licensee of the equal employment and opportunity provision of this Agreement is an express condition hereof and any failure by Licensee to so comply and perform shall be a default of this Agreement and City may exercise any right as provided herein and as otherwise provided by law. 7.5 Entire Agreement. This Agreement comprises the entire integrated understanding between City and Licensee concerning the use and occupation of the Lot and supersedes all prior negotiations, representations, or agreements. Each party has relied on its own examination of the Lot, advice from its own attorneys, and the warranties, representations, and covenants of the Agreement itself. 7.6 Interpretation of the Agreement. The interpretation, validity and enforcement of the Agreement shall be governed by and construed under the laws of the State of California. The Agreement does not limit any other rights or remedies available to City. a. Licensee shall be responsible for complying with all Local, State, and Federal laws whether or not said laws are expressly stated or referred to herein. b. Should any provision herein be found or deemed to be invalid, the Agreement shall be construed as not containing such provision, and all other provisions which are otherwise lawful shall remain in full force and effect, and to this end the provisions of this Agreement are severable. c. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. 7.7 Agreement Modification. This Agreement may not be modified orally or in any manner other than by an agreement in writing signed by the parties hereto. 7.8 Attorney's Fees. In the event a suit is commenced by City against Licensee to enforce payment of amounts due, or to enforce any of the terms and conditions hereof, or in case City shall commence summary action under the laws of the State of California relating to the unlawful detention of Lot, for forfeit of this Agreement, and the possession of the Lot, provided City effects a recovery, Licensee shall pay City all reasonable costs expended in any action, together with a reasonable attorney's fee to be fixed by the court. Venue for any such suit or action shall be California Superior Court, San Diego County. 7.9 Assignment and Subletting-No Encumbrance. This Agreement and any portion thereof shall not be assigned, transferred, or sublet, nor shall any of the Licensee’s 2017-05-23 Agenda Packet Page 545 Page 11 5/18/2017 The Industry License Agreement duties be delegated, without the express written consent of the City’s Property Manager or the City’s Cultural Arts Manager or designee in their sole discretion. Any attempt to assign or delegate this Agreement without the express written consent of the City’s Property Manager or the City’s Cultural Arts Manager or designee shall be void and of no force or effect. A consent by City to one assignment, transfer, sublease, or delegation shall not be deemed to be a consent to any subsequent assignment, transfer, sublease, or delegation. 7.10 Defaults and Termination. If City has a good faith belief that Licensee is not complying with the terms of this Agreement, City shall give written notice of the default (with reasonable specificity) to Licensee and demand the default to be cured within ten (10) days of the notice. If Licensee is actually in default of this Agreement and fails to cure the default within ten (10) days of the notice, or, if more than ten (10) days are reasonably required to cure the default and Licensee fails to give adequate assurance of due performance within ten (10) days of the notice, City may terminate this Agreement upon written notice to Licensee. City may also terminate this Agreement upon written notice to Licensee in the event that: a. Licensee has previously been notified by City of Licensee’s default under this Agreement and Licensee, after beginning to cure the default, fails to diligently pursue the cure of the default to completion; or b. Licensee shall voluntarily file or have involuntarily filed against it any petition under any bankruptcy or insolvency act or law; or c. Licensee shall be adjudicated a bankruptcy; or d. Licensee shall make a general assignment for the benefit of creditors. Upon termination, City may immediately enter and take possession of the Lot. 7.11 No Waiver. The failure to require the remedy of a breach or enforce the terms and conditions of this Agreement in one instance or several instances shall not be interpreted to be a waiver of the right to enforce the terms and conditions of this Agreement for any subsequent breach. 7.12 Other Regulations. All use of the Lot by Licensee under this Agreement shall be in accordance with the laws of the United States of America, the State of California, the County of San Diego, and in accordance with all applicable rules and regulations and ordinances of the City of Chula Vista now in force, or hereinafter prescribed or promulgated by resolution or ordinance or by Local, State or Federal law. 7.13 Time is of Essence; Provisions Binding on Successors. Time is of the essence of all of the terms, covenants and conditions of this Agreement and, except as otherwise provided herein, all of the terms, covenants and conditions of this Agreement shall apply to, benefit and bind the successors and assigns of the respective parties, jointly and individually. 7.14 Section Headings. The Section headings contained herein are for convenience only and are not intended to define or limit the scope of any provision thereof. 2017-05-23 Agenda Packet Page 546 Page 12 5/18/2017 The Industry License Agreement 7.15 Gender/Singular/Plural. The neuter gender includes the feminine and masculine, the masculine includes the feminine and neuter, and the feminine includes the masculine and neuter, and each includes corporation, partnership, or other legal entity when the context so requires. The singular number includes the plural whenever the context so requires. 7.16 Non-liability of Officials. No member, official or employee of the City shall be personally liable to Licensee, its assigns or successors in interest, in the event of any default or breach by the City, for any amount which may become due to Licensee its assigns or successors, or in any obligations under the terms of this Agreement. 7.17 Relationship between City and Licensee. It is hereby acknowledged that the relationship between City and Licensee is that of landowner and tenant at will and not that of a partnership or joint venture and that City and Licensee shall not be deemed or construed for any purpose to be the agent of the other. Accordingly, except as expressly provided herein, the City shall have no duties or obligations with respect to the improvement, maintenance or upkeep of the Lot. 7.18 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 7.19 Signatories. The individuals executing this Agreement represent and warrant that they have the right, power, legal capacity and authority to enter into and to execute this Agreement on behalf of the respective legal entities of the Licensee and the City. [NEXT PAGE IS SIGNATURE PAGE] 2017-05-23 Agenda Packet Page 547 Page 13 5/18/2017 The Industry License Agreement SIGNATURE PAGE TO LICENSE AND FACILITY OVERSIGHT AGREEMENT IN WITNESS WHEREOF, the parties hereto for themselves, their heirs, executors, administrators, successors, and assigns do hereby agree to the full performance of the covenants herein contained and have caused this Agreement to be executed as of, but not necessarily on, the Effective Date by setting hereunto their signatures herein below. CITY: City of Chula Vista By: Richard A. Ryals, Real Property Manager LICENSEE: Francisco Garcia-Velasquez; The Industry By: J:\Attorney\MichaelSh\Shipping Containers-Cultural Arts-Third Ave\Agreement\ShipContCultArtsAgrmt-5.18.17-FINAL.doc 2017-05-23 Agenda Packet Page 548 Page 14 5/18/2017 The Industry License Agreement EXHIBIT “A” LOT APN: 5680441900 224 Third Avenue 2017-05-23 Agenda Packet Page 549 City of Chula Vista Staff Report File#:17-0225, Item#: 12. Ratification of appointment of Patrick MacFarland to the Housing Advisory Commission. City of Chula Vista Printed on 5/18/2017Page 1 of 1 powered by Legistar™2017-05-23 Agenda Packet Page 550 2017-05-23 Agenda Packet Page 551 2017-05-23 Agenda Packet Page 552 2017-05-23 Agenda Packet Page 553 2017-05-23 Agenda Packet Page 554 2017-05-23 Agenda Packet Page 555 2017-05-23 Agenda Packet Page 556 City of Chula Vista Staff Report File#:17-0198, Item#: 13. Consideration of appointment of a voting delegate and alternates for the 2017 League of California Cities Annual Conference, to be held in Sacramento, September 13 through 15. City of Chula Vista Printed on 5/18/2017Page 1 of 1 powered by Legistar™2017-05-23 Agenda Packet Page 557 May 3, 2017 TO: Mayors, City Managers and City Clerks RE: DESIGNATION OF VOTING DELEGATES AND ALTERNATES League of California Cities Annual Conference – September 13 – 15, Sacramento The League’s 2017 Annual Conference is scheduled for September 13 – 15 in Sacramento. An important part of the Annual Conference is the Annual Business Meeting (during General Assembly), scheduled for 12:30 p.m. on Friday, September 15, at the Sacramento Convention Center. At this meeting, the League membership considers and takes action on resolutions that establish League policy. In order to vote at the Annual Business Meeting, your city council must designate a voting delegate. Your city may also appoint up to two alternate voting delegates, one of whom may vote in the event that the designated voting delegate is unable to serve in that capacity. Please complete the attached Voting Delegate form and return it to the League’s office no later than Friday, September 1, 2017. This will allow us time to establish voting delegate/alternate records prior to the conference. Please note the following procedures that are intended to ensure the integrity of the voting process at the Annual Business Meeting. • Action by Council Required. Consistent with League bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. When completing the attached Voting Delegate form, please attach either a copy of the council resolution that reflects the council action taken, or have your city clerk or mayor sign the form affirming that the names provided are those selected by the city council. Please note that designating the voting delegate and alternates must be done by city council action and cannot be accomplished by individual action of the mayor or city manager alone. • Conference Registration Required. The voting delegate and alternates must be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. To register for the conference, please go to our website: www.cacities.org. In order to cast a vote, at least one voter must be present at the 1400 K Street, Suite 400 • Sacramento, California 95814 Phone: 916.658.8200 Fax: 916.658.8240 www.cacities.org Council Action Advised by July 31, 2017 2017-05-23 Agenda Packet Page 558 Business Meeting and in possession of the voting delegate card. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the Voting Delegate Desk. This will enable them to receive the special sticker on their name badges that will admit them into the voting area during the Business Meeting. • Transferring Voting Card to Non-Designated Individuals Not Allowed. The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the Business Meeting, they may not transfer the voting card to another city official. • Seating Protocol during General Assembly. At the Business Meeting, individuals with the voting card will sit in a separate area. Admission to this area will be limited to those individuals with a special sticker on their name badge identifying them as a voting delegate or alternate. If the voting delegate and alternates wish to sit together, they must sign in at the Voting Delegate Desk and obtain the special sticker on their badges. The Voting Delegate Desk, located in the conference registration area of the Sacramento Convention Center, will be open at the following times: Wednesday, September 13, 8:00 a.m. – 6:00 p.m.; Thursday, September 14, 7:00 a.m. – 4:00 p.m.; and Friday, September 15, 7:30 a.m.– Noon. The Voting Delegate Desk will also be open at the Business Meeting on Friday, but will be closed during roll calls and voting. The voting procedures that will be used at the conference are attached to this memo. Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates. Once again, thank you for completing the voting delegate and alternate form and returning it to the League office by Friday, September 1. If you have questions, please call Carly Shelby at (916) 658-8279. Attachments: • Annual Conference Voting Procedures • Voting Delegate/Alternate Form 2017-05-23 Agenda Packet Page 559 Annual Conference Voting Procedures 1. One City One Vote. Each member city has a right to cast one vote on matters pertaining to League policy. 2. Designating a City Voting Representative. Prior to the Annual Conference, each city council may designate a voting delegate and up to two alternates; these individuals are identified on the Voting Delegate Form provided to the League Credentials Committee. 3. Registering with the Credentials Committee. The voting delegate, or alternates, may pick up the city's voting card at the Voting Delegate Desk in the conference registration area. Voting delegates and alternates must sign in at the Voting Delegate Desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the Business Meeting. 4. Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the Credentials Committee at the Voting Delegate Desk, may sign petitions to initiate a resolution. 5. Voting. To cast the city's vote, a city official must have in his or her possession the city's voting card and be registered with the Credentials Committee. The voting card may be transferred freely between the voting delegate and alternates, but may not be transferred to another city official who is neither a voting delegate or alternate. 6. Voting Area at Business Meeting. At the Business Meeting, individuals with a voting card will sit in a designated area. Admission will be limited to those individuals with a special sticker on their name badge identifying them as a voting delegate or alternate. 7. Resolving Disputes. In case of dispute, the Credentials Committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the Business Meeting. 2017-05-23 Agenda Packet Page 560 2017 ANNUAL CONFERENCE VOTING DELEGATE/ALTERNATE FORM Please complete this form and return it to the League office by Friday, September 1, 2017. Forms not sent by this deadline may be submitted to the Voting Delegate Desk located in the Annual Conference Registration Area. Your city council may designate one voting delegate and up to two alternates. In order to vote at the Annual Business Meeting (General Assembly), voting delegates and alternates must be designated by your city council. Please attach the council resolution as proof of designation. As an alternative, the Mayor or City Clerk may sign this form, affirming that the designation reflects the action taken by the council. Please note: Voting delegates and alternates will be seated in a separate area at the Annual Business Meeting. Admission to this designated area will be limited to individuals (voting delegates and alternates) who are identified with a special sticker on their conference badge. This sticker can be obtained only at the Voting Delegate Desk. 1. VOTING DELEGATE Name: Title: 2. VOTING DELEGATE - ALTERNATE 3. VOTING DELEGATE - ALTERNATE Name: Name: Title: Title: PLEASE ATTACH COUNCIL RESOLUTION DESIGNATING VOTING DELEGATE AND ALTERNATES. OR ATTEST: I affirm that the information provided reflects action by the city council to designate the voting delegate and alternate(s). Name: E-mail Mayor or City Clerk Phone: (circle one) (signature) Date: Please complete and return by Friday, September 1, 2017 League of California Cities FAX: (916) 658-8240 ATTN: Carly Shelby E-mail: cshelby@cacities.org 1400 K Street, 4th Floor (916) 658-8279 Sacramento, CA 95814 CITY:________________________________________ 2017-05-23 Agenda Packet Page 561