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Home My WebLink AboutAgenda Packet 2017_11_07 500November 7, 2017City Council Agenda PRESENTATION OF A PROCLAMATION HONORING KAREN ROQUE, OWNER OF EL PRIMERO HOTEL, FOR THE SUMMER SERIES "JAZZ ON THIRD" 17-0479C.17-0479 PRESENTATION OF A PROCLAMATION PROCLAIMING TUESDAY, NOVEMBER 7, 2017 AS LAW ENFORCEMENT RECORDS AND SUPPORT PERSONNEL DAY 17-0480D.17-0480 CONSENT CALENDAR (Items 1 - 9) 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 COMMUNICATION Memorandum from Councilmember Padilla requesting an excused absence from the October 12, 2017 council workshop. 17-04881.17-0488 Council excuse the absence. Staff Recommendation: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SUBMITTAL OF A GRANT APPLICATION TO THE CALIFORNIA STATE PARKS OUTDOOR ENVIRONMENTAL EDUCATION FACILITIES GRANT PROGRAM FOR A KUMEYAAY VILLAGE REPLICA PROJECT IN THE OTAY VALLEY REGIONAL PARK, ACCEPTING THE TERMS OF THE GRANT CONTRACT AND AUTHORIZING THE DIRECTOR OF DEVELOPMENT SERVICES TO EXECUTE SAID AGREEMENT FOR THE CITY OF CHULA VISTA 17-04352.17-0435 City Attorney & Development Services Department Department: The project qualifies for a Categorical Exemption Section 15301 (Existing Facilities); Section 15303 (New Construction or Conversion of Small Structures); Section 15304 (Minor Alterations to Land); and Section 15311 (Accessory Structures) of the California Environmental Quality Act State Guidelines. Environmental Notice: Council adopt the resolution. Staff Recommendation: Page 2 City of Chula Vista Printed on 11/3/2017 2017-11-07 Agenda Packet Page 2 November 7, 2017City Council Agenda RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING YEAR FOUR OF A SUB-AWARD AGREEMENT WITH COMMUNITY HEALTH IMPROVEMENT PARTNERS FOR THE RACIAL AND ETHNIC APPROACHES TO COMMUNITY HEALTH PROJECT, AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT AND THE CITY MANAGER TO EXECUTE ALL OTHER DOCUMENTS NECESSARY TO IMPLEMENT THE AGREEMENT, AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) 17-04313.17-0431 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. Environmental Notice: Council adopt the resolution. Staff Recommendation: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SUMMARILY VACATING THE EMERGENCY ACCESS EASEMENT OVER PARCEL 2 OF PARCEL MAP NO. 17802 (SEAWORLD AQUATICA) 16-03404.16-0340 Development Services Department Department: The Project qualifies for a Class 5 Categorical Exemption pursuant to Section 15305 (Minor Alterations in Land Use Limitations) of the California Environmental Quality Act State Guidelines. Environmental Notice: Council adopt the resolution. Staff Recommendation: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING STAFF TO SUBMIT REQUIRED DOCUMENTATION TO THE COUNTY OF SAN DIEGO TO INITIATE THE ADOPTION PROCESS OF AN URBAN AGRICULTURE INCENTIVE ZONE 17-04535.17-0453 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. Environmental Notice: Council adopt the resolution. Staff Recommendation: Page 3 City of Chula Vista Printed on 11/3/2017 2017-11-07 Agenda Packet Page 3 November 7, 2017City Council Agenda RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING COUNCIL POLICY NO. 585-02: UTILITY TRENCH MORATORIUM POLICY AND ADOPTING CHULA VISTA CONSTRUCTION STANDARD CVCS 3A: MORATORIUM ROADWAY TRENCH RESURFACING 17-01786.17-0178 Engineering 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 APPROVING A CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND KLEINFELDER CONSTRUCTION SERVICES, INC. TO PROVIDE ON-CALL CIP CONSTRUCTION MANAGEMENT CONSULTING SERVICES B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND DHS CONSULTING, INC. TO PROVIDE ON-CALL CIP CONSTRUCTION MANAGEMENT CONSULTING SERVICES C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND PROJECT PROFESSIONALS CORPORATION TO PROVIDE ON-CALL CIP CONSTRUCTION MANAGEMENT CONSULTING SERVICES 17-04097.17-0409 Engineering 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 adopt the resolutions. Staff Recommendation: Page 4 City of Chula Vista Printed on 11/3/2017 2017-11-07 Agenda Packet Page 4 November 7, 2017City Council Agenda FISCAL YEAR 2016/2017 ANNUAL FINANCIAL STATUS REPORT 17-04398.17-0439 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 accept the report. Staff Recommendation: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADDING TWELVE FIREFIGHTERS TO THE AUTHORIZED STAFFING OF THE FIRE DEPARTMENT (4/5 VOTE REQUIRED) 17-04589.17-0458 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: 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. Page 5 City of Chula Vista Printed on 11/3/2017 2017-11-07 Agenda Packet Page 5 November 7, 2017City Council Agenda 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. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT FOR DEFERRAL OF DEVELOPMENT IMPACT FEES BETWEEN THE CITY AND SETHI MANAGEMENT, INC. FOR APPROXIMATELY $1.3 MILLION IN FEES IN CONNECTION WITH A 204-ROOM HOTEL PROJECT AT 2424 FENTON STREET 17-042710.17-0427 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. Environmental Notice: Council adopt the resolution. Staff Recommendation: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LAND USE AMENDMENT INITIATION REQUEST (IR 17-0018) AND DIRECTING STAFF TO PROCEED WITH THE PROCESSING OF A GENERAL PLAN AMENDMENT ONCE FORMALLY SUBMITTED BY THE APPLICANT FOR A 9.6-ACRE PARCEL LOCATED SOUTHWEST OF THE INTERSECTION OF EASTLAKE DRIVE AND SR-125 17-040811.17-0408 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 activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Environmental Notice: Council conduct the public hearing, and adopt the resolution. Staff Recommendation: Page 6 City of Chula Vista Printed on 11/3/2017 2017-11-07 Agenda Packet Page 6 November 7, 2017City Council Agenda RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LAND USE AMENDMENT INITIATION REQUEST (IR17-0021) AND DIRECTING STAFF TO PROCEED WITH THE PROCESSING OF A GENERAL DEVELOPMENT PLAN AMENDMENT, SECTIONAL PLANNING AREA AMENDMENT, TENTATIVE SUBDIVISION MAP, AND REZONING ON A PORTION OF THE PROPERTY FROM COMMUNITY PURPOSE FACILITY TO SINGLE FAMILY RESIDENTIAL, RETENTION OF EXISTING CHURCH USE, AND PROPOSING ADDITIONAL COMMUNITY PURPOSE USES ONCE FORMALLY SUBMITTED BY THE APPLICANT FOR A 12.2-ACRE SITE LOCATED AT1227 EASTLAKE PARKWAY 17-046612.17-0466 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 activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Environmental Notice: Council conduct the public hearing and accept the Land Use Amendment request and, should the Council determine that the request is appropriate, direct staff to process the application once submitted. Staff Recommendation: Page 7 City of Chula Vista Printed on 11/3/2017 2017-11-07 Agenda Packet Page 7 November 7, 2017City Council Agenda 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. PRESENTATION OF THE FINAL REPORT ON THE COST RECOVERY, RESOURCE ALLOCATION AND REVENUE ENHANCEMENT STUDY RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CERTAIN SECTIONS OF CHAPTER 7 (RECREATION) OF THE CITY’S MASTER FEE SCHEDULE 15-057213.15-0572 Recreation 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 accept the report and adopt the resolution. Staff Recommendation: A. QUARTERLY FINANCIAL REPORT FOR THE QUARTER ENDING SEPTEMBER 30, 2017 B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2017/18 BUDGET TO ADJUST FOR VARIANCES AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) 17-047714.17-0477 Finance Department Department: The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that filing of the quarterly financial status report 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: Council accept the report and adopt the resolution. Staff Recommendation: Page 8 City of Chula Vista Printed on 11/3/2017 2017-11-07 Agenda Packet Page 8 November 7, 2017City Council Agenda CITY MANAGER’S REPORTS MAYOR’S REPORTS RATIFICATION OF APPOINTMENTS OF THE FOLLOWING INDIVIDUALS TO THE HUMAN RELATIONS COMMISSION: - Audrey Bordeaux - Petrina Branch - Jeremy Culuko - William Felix - Robert Godinez - Bernard Gonzales - Dalia Gonzalez - Paola Martinez-Montes - Ricardo Medina - Ahmad Zadah - Susan Lake 17-048215.17-0482 COUNCILMEMBERS’ COMMENTS CITY ATTORNEY'S REPORTS CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council Meeting at the City Attorney’s office in accordance with the Ralph M. Brown Act (Government Code 54957.7). CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6 Agency designated representatives: Glen Googins, Maria Kachadoorian, Kelley Bacon, Simon Silva, Gary Halbert, Courtney Chase, David Bilby Employee organization: Association of Chula Vista Employees (ACE) 17-047016.17-0470 ADJOURNMENT in memory of Lorraine Johnson, September 26, 1943 - October 13, 2017 to the Regular City Council Meeting on November 21, 2017, at 5:00 p.m., in the Council Chambers. Page 9 City of Chula Vista Printed on 11/3/2017 2017-11-07 Agenda Packet Page 9 November 7, 2017City Council Agenda Materials provided to the City Council related to any open-session item on this agenda are available for public review at the City Clerk’s Office, located in City Hall at 276 Fourth Avenue, Building A, during normal business hours. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service, contact the City Clerk’s Office at (619) 691-5041(California Relay Service is available for the hearing impaired by dialing 711) at least forty-eight hours in advance of the meeting. 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 10 City of Chula Vista Printed on 11/3/2017 2017-11-07 Agenda Packet Page 10 City of Chula Vista Staff Report File#:17-0483, Item#: A. PRESENTATION OF A PROCLAMATION TO SWEETWATER UNION HIGH SCHOOL DISTRICT’S VISUAL AND PERFORMING ARTS DIRECTOR JEFF KOVER IN RECOGNITION OF ITS 50 TH ANNUAL BAND PAGEANT City of Chula Vista Printed on 11/2/2017Page 1 of 1 powered by Legistar™2017-11-07 Agenda Packet Page 11 City of Chula Vista Staff Report File#:17-0441, Item#: B. EMPLOYEE SERVICE RECOGNITION HONORING STAFF WITH MILESTONE SERVICE ANNIVERSARIES City of Chula Vista Printed on 11/2/2017Page 1 of 1 powered by Legistar™2017-11-07 Agenda Packet Page 12 City of Chula Vista Staff Report File#:17-0479, Item#: C. PRESENTATION OF A PROCLAMATION HONORING KAREN ROQUE, OWNER OF EL PRIMERO HOTEL, FOR THE SUMMER SERIES "JAZZ ON THIRD" City of Chula Vista Printed on 11/2/2017Page 1 of 1 powered by Legistar™2017-11-07 Agenda Packet Page 13 City of Chula Vista Staff Report File#:17-0480, Item#: D. PRESENTATION OF A PROCLAMATION PROCLAIMING TUESDAY, NOVEMBER 7, 2017 AS LAW ENFORCEMENT RECORDS AND SUPPORT PERSONNEL DAY City of Chula Vista Printed on 11/2/2017Page 1 of 1 powered by Legistar™2017-11-07 Agenda Packet Page 14 City of Chula Vista Staff Report File#:17-0488, Item#: 1. WRITTEN COMMUNICATION Memorandum from Councilmember Padilla requesting an excused absence from the October 12, 2017 council workshop. RECOMMENDED ACTION Council excuse the absence. City of Chula Vista Printed on 11/2/2017Page 1 of 1 powered by Legistar™2017-11-07 Agenda Packet Page 15 2017-11-07 Agenda Packet Page 16 City of Chula Vista Staff Report File#:17-0435, Item#: 2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SUBMITTAL OF A GRANT APPLICATION TO THE CALIFORNIA STATE PARKS OUTDOOR ENVIRONMENTAL EDUCATION FACILITIES GRANT PROGRAM FOR A KUMEYAAY VILLAGE REPLICA PROJECT IN THE OTAY VALLEY REGIONAL PARK, ACCEPTING THE TERMS OF THE GRANT CONTRACT AND AUTHORIZING THE DIRECTOR OF DEVELOPMENT SERVICES TO EXECUTE SAID AGREEMENT FOR THE CITY OF CHULA VISTA RECOMMENDED ACTION Council adopt the resolution. SUMMARY The California State Parks Office of Grants and Local Services (OGALS) offers an Outdoor Environmental Education Facilities grant of up to $500,000, to provide assistance to local agencies and community-based organizations for construction costs to develop an outdoor environmental educational facility. City of Chula Vista staff, as the lead agency, in collaboration with the City of San Diego Park and Recreation Department, applied for the grant for a Kumeyaay Village Replica project to be a signature attraction in the Otay Valley Regional Park (OVRP). The Village Replica is proposed along a trail segment adjacent to Fenton Pond in the City of San Diego (Attachment 1). The grant application requires a Resolution authorizing approval for the grant application (Attachment 2), and entering into a contract for grant funds (Attachment 3). Staff is requesting $250,000 based on a cost estimate following discussions with the Kumeyaay Jamul Band and City of San Diego Park and Recreation staff. ENVIRONMENTAL REVIEW Environmental Notice The project qualifies for a Categorical Exemption Section 15301 (Existing Facilities); Section 15303 (New Construction or Conversion of Small Structures); Section 15304 (Minor Alterations to Land); and Section 15311 (Accessory Structures) 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 Categorical Exemption pursuant to Section 15301 (Existing Facilities); Section 15303 (New Construction or Conversion of Small Structures); Section 15304 (Minor Alterations to Land); and Section 15311 (Accessory Structures) of the State CEQA Guidelines. Consistent with Section 15301, the project site is located along an existing trail in the OVRP; consistent with Section 15303, the project is small, covering less than 2,500 square feet of area; consistent with Section 15304, the project involves a minor alteration to a trail section; consistent with Section 15311, the project is an accessory to the existing ranger station on site. Therefore, no further environmental review is City of Chula Vista Printed on 11/2/2017Page 1 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 17 File#:17-0435, Item#: 2. accessory to the existing ranger station on site. Therefore, no further environmental review is required. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION On February 15, 2017, California State Parks invited local agencies to apply for the $500,000 Outdoor Environmental Educational Facilities (OEEF) Grant fund for construction of qualifying outdoor environmental educational facilities. OVRP Joint Staff representing the Cities of Chula Vista, San Diego, and the County of San Diego, presented the Kumeyaay Village Replica project to the OVRP Executive Management Team, which agreed that the project was appropriate for the OVRP and directed Joint Staff to apply for the OEEF grant. Joint Staff also presented the project to the OVRP Citizen Advisory Committee and Policy Committee; both committees encouraged Joint Staff to apply for the grant. The grant stipulates that the City Council delegate the authority to an authorizing representative, which would be the Director of Development Services or designee, to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the grant scope. City of Chula Vista, as the lead agency in collaboration with the City of San Diego Park and Recreation Department, applied for the grant for a Kumeyaay Village Replica project to be a signature attraction in the OVRP. The Village Replica will include ewaas (huts), a Toule canoe, a Ramada, and other items typically used in a Kumeyaay Village. The Village Replica is proposed on a small open area along an existing trail adjacent to Fenton Pond in the City of San Diego. Chula Vista staff submitted a request for $250,000 based on a cost estimate following discussions with the Kumeyaay Jamul Band and City of San Diego Park and Recreation staff. The grant application requires a resolution authorizing approval for the grant and entering into a contract to administer grant funds. The State requires that the project be completed and opened to the public within seven years from the date the funds are awarded. The Kumeyaay Jamul Band offered assistance to design, construct, and maintain the Village Replica. Staff fully expects that the project will be available for public enjoyment prior to the seven-year deadline. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has not found any property holdings within 500 feet of the boundaries of the OVRP boundaries subject of this action. Consequently, this 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 project’s location in the OVRP will address the Healthy Community and Connected Community goals as it seeks toCity of Chula Vista Printed on 11/2/2017Page 2 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 18 File#:17-0435, Item#: 2. in the OVRP will address the Healthy Community and Connected Community goals as it seeks to provide recreational and educational opportunities for residents and visitors. CURRENT YEAR FISCAL IMPACT All staff costs associated with preparing the grant application are included in the current adopted budget. ONGOING FISCAL IMPACT Approval of this grant application will result in the distribution of requested grant money to construct a Kumeyaay Village Replica in the Otay Valley Regional Park. No matching funds are requested for the project. If awarded, the grant funds would be received on a reimbursement basis, based upon project milestones; the $250,000 grant is expected to fully fund the project. Funding for ongoing operations and maintenance of improvements is expected under the terms of the Joint Exercise of Powers Agreement (JEPA) ATTACHMENTS 1. Kumeyaay Village Site Locator Map 2. Kumeyaay Village Replica Scene 3. Grant Application Documents 4. California State Parks Grant Contract Staff Contact: Michael Walker, Senior Planner, Advance Planning City of Chula Vista Printed on 11/2/2017Page 3 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 19 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SUBMITTAL OF A GRANT APPLICATION TO THE CALIFORNIA STATE PARKS OUTDOOR ENVIRONMENTAL EDUCATION FACILITIES GRANT PROGRAM FOR A KUMEYAAY VILLAGE REPLICA PROJECT IN THE OTAY VALLEY REGIONAL PARK, ACCEPTING THE TERMS OF THE GRANT CONTRACT AND AUTHORIZING THE DIRECTOR OF DEVELOPMENT SERVICES TO EXECUTE SAID AGREEMENT FOR THE CITY OF CHULA VISTA WHEREAS, the State Department of Parks and Recreation has been delegated the responsibility by the Legislature of the State of California for the administration of the Outdoor Environmental Education Facilities Grant Program, setting up necessary procedures governing the application; and WHEREAS, said procedures established by the State Department of Parks and Recreation require the Applicant to certify by resolution the approval of the application before submission of said application to the State; and WHEREAS, successful Applicants will enter into a contract with the State of California to complete the Grant Scope project; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the California State Parks application for Outdoor Environmental Education Facilities Grant Program funds for project development for the Otay Valley Regional Park; and 1. Certifies that said Applicant has or will have available, prior to commencement of any work on the project included in this application, the sufficient funds to complete the project; and 2. Certifies that if the project is awarded, the Applicant has or will have sufficient funds to operate and maintain the project; and 3. Certifies that the Applicant has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Grant Administration Guide; and 4. Delegates the authority to the Development Services Director, or designee, to conduct all negotiations, sign and submit all documents, including, but not limited to applications, agreements, amendments, and payment requests, which may be necessary for the completion of the Grant Scope; and 5. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines. 2017-11-07 Agenda Packet Page 20 Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney Approved and adopted the _____day of ______________, 20_______ I, the undersigned, hereby certify that the foregoing Resolution Number _____ was duly adopted by the City Council of the City of Chula Vista following a roll call vote: Ayes: Noes: Absent: ______________________________________ Kerry Bigelow City Clerk 2017-11-07 Agenda Packet Page 21 Kumeyaay Village Replica Site Fenton Pond Kumeyaay Village Replica Project Site Ranger Station 2017-11-07 Agenda Packet Page 22 2017-11-07 Agenda Packet Page 23 2017-11-07 Agenda Packet Page 24 2017-11-07 Agenda Packet Page 25 2017-11-07 Agenda Packet Page 26 2017-11-07 Agenda Packet Page 27 State of California -Department of Fish and Wildlife 2017 ENVIRONMENTAL FILING FEE CASH RECEIPT DFW 753.5a (Rev. 12/15/15) Previously DFG 753.5a SEE INSTRUCTIONS ON REVERSE. TYPE OR PRINT CLEARLY. LEAD AGENCY CITY OF SAN DIEGO COUNTY/STATE AGENCY OF FILING San Diego County I ~-EADAGENCY EMAIL RECEIPT NUMBER: 37-2017-0791 STATE CLEARINGHOUSE NUMBER (If applicable) DATE 09/15/17 DOCUMENT NUMBER *20170791* PROJECTTITLE OTAY VALLEY REGIONAL PARK (OVRP) KUMEYAAY VILLAGE REPLICA PROJECT APPLICANT NAME PROJECT APPLICANT EMAIL PHONE NUMBER 619.409.5472 MICHAEL WALKER, SENIOR PLANNER, CITY OF CHULA VISTA PROJECT APPLICANT ADDRESS 276 FOURTH AVENUE PROJECT APPLICANT (Check appropriate box) CITY CHULA VISTA D Local Public Agency D School District D Other Special District CHECK APPLICABLE FEES: D Environmental Impact Report (EIR) D Mitigated/Negative Declaration (MND)(ND) D Certified Regulatory Program document (CRP) D Exempt from fee 0 Notice of Exemption (attach) D CDFW No Effect Determination (attach) D Fee previously paid (attach previously Issued cash receipt copy) D Water Right Application or Petition Fee (State Water Resources Control Board only) 121 County documentary handling fee D Other PAYMENT METHOD: ! STATE CA ZIP CODE 91910 D State Agency 18] Private Entity $3,078.25 $2,216.25 $1,046.50 $ __________ _ $ __________ _ $ __________ _ $850.00 $ $ $ $50.00 D Cash D Credit 111 Check D Other 0001561477 TOTAL RECEIVED $ $50.00 AGENCY OF FILING PRINTED NAME AND TITLE San Diego County K.BAO , Deputy I IIIIII IIIII IIIII IIIII IIIII IIIII IIIII IIIII IIII IIII ORIGINAL -PROJECT APPLICANT COPY -CDFW/ASB COPY -LEAD AGENCY COPY -COUNTY CLERK DFW 753.5a (Rev. 20151215) 2017-11-07 Agenda Packet Page 28 NOTICE OF EXEMPTION (Check one or both) TO: X RECORDER/COUNTY CLERK P.O. Box 1750, MS A-33 1600 PACIFIC HWY, ROOM 260 SAN DIEGO, CA 92101-2422 ___ OFFICE OF PLANNING AND RESEARCH 1400 TENTH STREET, ROOM 121 SACRAMENTO,CA 95814 PROJECT No.: N/A FROM: CITY OF SAN DIEGO PLANNING DEPARTMENT 1010 2ND AVENUE, SUITE 1200 EAST TOWER, MS 413 SAN DIEGO, CA 92101 !?011@:[0 Ernest J Dronenburg, Jr. Recorder County Clerk SEP 1 5 2017 PROJECT TITLE: Otay Valley Regional Park (OVRP) Kumeyaay Village Replica sv~/:;b- ~DEPUTY PROJECT LOCATION-SPECIFIC: City of San Diego, adjacent to the Otay Valley Regional Park Ranger Station and trail around Fenton Pond at 2155 Beyer Blvd, San Diego, CA 92154, in the Otay Mesa Nestor Community Planning Area, City Council District 8. The project area is located within the City of San Diego's Multiple Species Conservation Program (MSCP) Subarea Plan (SAP)/Multi-Habitat Planning Area (MHPA). PROJECT LOCATION-CITY/COUNTY: San Diego/San Diego DESCRIPTION OF PROJECT: Mayor Approval to allow for the installation of a Kumeyaay village daily living scene replica to include up to three 14' x 8' Kumeyaay ewaas (huts), interpretive panels, a traditional canoe, tools, everyday use vessels, etc. The ewaas and interpretive panels will be anchored to existing, disturbed ground, and no excavation or other ground disturbance is required. The village will be an accessory to the existing ranger station on site and will be an educational interactive scene where visitors can role play as a Kumeyaay while learning about the Kumeyaay history in the Otay River Valley. The project would implement aspects of the Otµy Valiey Regional Park Concept Plan. NAME OF PUBLIC AGENCY APPROVING PROJECT: City of San Diego NAME OF PERSON OR AGENCY CARRYING OUT PROJECT: Michael Walker' Senior Planner' City of Chula Vista 276 Fourth Avenue, Chula Vista, CA 91910 (619) 409-5472 EXEMPT STATUS: (CHECK ONE) ( ) MINISTERIAL ( ) ( ) DECLARED EMERGENCY [SEC. 15269 (A)] ( ) EMERGENCY PROJECT [SEC. 15269 (B) AND (c)] (X) CATEGORICAL EXEMPTION: Section(s) 15301 (Existing Facilities); Section 15303 (New Construction or Conversion of Small Structures); 15304 (Minor Alterations to Land); and 15311 (Accessory Structures). ( ) OTHER: REASONS WHY PROJECT IS EXEMPT: The City of San Diego conducted an environmental review that determined the project would not have the potential for causing a significant effect on the environment pursuant to State CEQA Guidelines Section 15301 (Existing Facilities) which allows for the operation, Page 1 of2 2017-11-07 Agenda Packet Page 29 repair, maintenance, permitting, leasing, licensing or minor alterations of existing public or private structures or facilities involving negligible or no expansion of use; Section 15303 (New Construction or Conversion of Small Structures) which allows for the construction and location of limited numbers of new, small facilities or structures, Section 15304 (Minor Alterations to Land) which consists of minor public or private alterations in the condition of land, water, and/or vegetation which would not involve, removal of healthy, mature, scenic trees except for agricultural use, and for minor trenching and backfilling where the surface is restored; and Section 15311 (Accessory Structures) which allows for the construction, or placement of minor structures accessory to (appurtenant to) existing commercial, industrial, or institutional facilities; and where the exceptions listed in CEQA Section 15300.2 would not apply in that no cumulative impacts were identified; no significant effect on the environment were identified; the project is not adjacent to a scenic highway; no historical resources would be affected by the action, and the project was not identified on a list of hazardous waste sites pursuant to Section 65962.5 of the Government Code. CONTACT PERSON: Myra Herrmann, Senior Planner TELEPHONE: (619) 446-5372 City of San Diego Planning Department IF FILED BY APPLICANT: 1. ATTACH CERTIFIED DOCUMENT OF EXEMPTION FINDING. 2. HAS A NOTICE OF EXEMPTION BEEN FILED BY THE PUBLIC AGENCY APPROVING THE PROJECT? ( ) YES ( ) No CHECK ONE: (X) SIGNED BY LEAD AGENCY ( ) SIGNED BY APPLICANT SENIOR PLANNER September 15, 2017 DATE DATE RECEIVED FOR FILING: ALEO IN THE OFFICE OF THE COUNTY CLERK San Diego Coonty on _ SEP 1 5 2017 Posted SEP 1 5 2017 R~moved_ .. -·-·-~-::ro~b ~ 7 Page 2 of2 2017-11-07 Agenda Packet Page 30 · ; . . . · . . .. • .. ', , .•. -l?f,N~~F~~G.'.> -. , ·.:.v ~~T-1/ '· .. : -: .· j •. 'f~~; -~;~TY qr ,S~: 2l-~~~9:: ---c~JM~~f{~~~~1~~Ni,,. c~~~l~'f._ '1:qP?~~·~!477 ! ,.1, .,,,.,';,, 1,1f!ViE:R).CASFINESTc;;tTY •:,, ,1:;·-GENffiAb. ·l,,i-, ,l1/Jli,.··///liiJ1:·/fµq1™6uNt/ ,. •/ 11' • // 1,, r JI ,I\ JI ·~ • •' t• ,,•~ . • \i,, ,l\11\] ~//J 11 : l • I , ..,. • •• ,.I Q • '• • '.11,/11 /1 • ., ~ , •1 \i,... ... .. H, -.,...-• ~' C . ' = ·-··-70-2328· •• 03/22/.2017 ' **· FiFrY:: b~~LA~~ **:~·:·***;Ji*~~**i~~i~~Jlli;***i[p**;****:* ~-?19 ~' • ~. -~---'. -~ r 1• • ",· • ~ .. S~.OQ j ': .\5 / \~~~ >/ ~~ ' ,'.:· . '.''._,I): : •' :f ://' i( ~I )i./~'' *;~ : :~i-,,. .' ~j ~ .-·~\1 ~~o/it~$J ~~:-~{ . ! TOTJ:1EO~E~OF~ COUNTY OF SAN DIEGO RECORDER ·· :. ~ .. · ,'1!,: : '.'!·:. ·---~ G™e~ifuan-2it1bffij~-; : . i ~ ASSESSOR/RECORDER/COUNTY CLERK u:(11iv?~'r,il!!~t]~li ·.~ :::_·~·j(~i/-.'i AC '. ' I, . l]f .•.. :: _,;._,,,;:. 0 ~~-.,; ~ --:~· s, ~ · · : , --. --~City 'freasurer""° -"""· ~-· · al ,. I l~.'~~Y~·· :,I "'/./~ .~f...'J !.~ ........... ----'-"''~ .. .,...,,..,.... \1!11 ,.,.¢.,l,1!pJ ... 4-_1LlI1...rt~-~.NP}1.,__CQ PAY ~'::::-. .,...c:!1,. _.!._ 1--'.:P _! ,'.~. -'_!! 11• O O O • 5 ti • '-. ? ? n• ,:0?1.g2:12at.,: ? ? b 5 20 la :l 2 1.11• I l I I j I I I I I I \ -r---------...--.--___....,_..-...---..,.....-_ .... _____ _,, ____________________ ,__ _____________ ..... ________ ~-.... -.. _____ ! 2017-11-07 Agenda PacketPage 31 Ernest J. Dronenburg, Jr. Assessor/Recorder/County Clerk 1600 Pacific Highway Suite 260 San Diego, CA92112-1750 Tel. (619) 238-8158 Fax (619) 557-4155 www.sdarcc.com Payment CHECK PAYMENT Total Payments Miscellaneous Item FISH & WILDLIFE FEES San Diego County Transaction#: Receipt#: Cashier Date: 2696267 2017278989 09/15/2017 Cashier Location: SD Fees: Fish & Wildlife County Administrative Fee Total Fees Due: ' Grand Total -All Documents: ( 111111111111111111111111111111111111111111111 Print Date: 09/15/2017 8:36 am Payment Summary Total Fees: Total Payments: Balance: $50.00 $50.00 $0.00 $50.00 $50.00 $50.00 $50.00 $50.00 Page 1 of 1 2017-11-07 Agenda Packet Page 32 2017-11-07 Agenda Packet Page 33 2017-11-07 Agenda Packet Page 34 2017-11-07 Agenda Packet Page 35 2017-11-07 Agenda Packet Page 36 2017-11-07 Agenda Packet Page 37 2017-11-07 Agenda Packet Page 38 2017-11-07 Agenda Packet Page 39 2017-11-07 Agenda Packet Page 40 2017-11-07 Agenda Packet Page 41 2017-11-07 Agenda Packet Page 42 June 23, 2017 ADMINISTRATION GUIDE for the Outdoor Environmental Education Facilities Grant Program State of California Natural Resources Agency Department of Parks and Recreation Office of Grants and Local Services “Creating Community through People, Parks, and Programs” Send Applications and Correspondence to: Street Address for Overnight Mail: Calif. Dept. of Parks and Recreation Office of Grants and Local Services 1416 Ninth Street, Room 918 Sacramento, CA 95814 Mailing Address: Calif. Dept. of Parks and Recreation Office of Grants and Local Services P.O. Box 942896 Sacramento, CA 94296-0001 (916) 653-7423 or LocalServices@parks.ca.gov www.parks.ca.gov/grants CAParkGrants 2017-11-07 Agenda Packet Page 43 Department Mission The mission of the California Department of Parks and Recreation is to provide for the health, inspiration, and education of the people of California by helping to preserve the state’s extraordinary biological diversity, protecting its most value d natural and cultural resources, and creating opportunities for high-quality outdoor recreation. The Office of Grants and Local Services (OGALS) Mission Statement The mission of the Office of Grants and Local Services is to address California’s diverse recreational, cultural and historical resource needs by developing grant programs, administering funds, offering technical assistance, building partnerships and providing leadership through quality customer service. OGALS Vision Goals  Proactive in meeting California’s park and recreation needs through innovative grant programs and customer service.  Committed to providing quality customer service in every interaction and transaction as honest, knowledgeable, and experienced grant administrators.  Sensitive to local concerns while mindful of prevailing laws, rules and regulations.  Responsive to the needs of APPLICANTs, GRANTEE’S, nonprofit organizations, local governments, and legislative members, who are our partners working to improve the quality of life for all Californians by creating new parks and recreation opportunities. 2017-11-07 Agenda Packet Page 44 TABLE OF CONTENTS Outdoor Environmental Education Facilities Grant Program Administration Guide PROCESS FOR GRANTEES ............................................................................................ 1 GRANT CONTRACT ......................................................................................................... 3 Grant Contract ................................................................................................................. 3 SPECIAL REQUIREMENTS ............................................................................................ 11 Status Report ................................................................................................................ 12 Deed Restriction ............................................................................................................ 13 Scope Change Requests .............................................................................................. 19 Fidelity Bond (For Non-profit GRANTEES only) ................................................................ 20 Three-Bid Process (For Non-profit GRANTEES only) ....................................................... 21 ELIGIBLE AND INELIGIBLE COSTS ............................................................................. 22 GRANT PAYMENTS ....................................................................................................... 24 Advance Payments ....................................................................................................... 24 Reimbursement Payments ............................................................................................ 25 Final Payments ............................................................................................................. 26 Payment Request Form ................................................................................................ 27 Grant Expenditure Form ................................................................................................ 29 Grant Completion Packet .............................................................................................. 30 Project Completion Certification .................................................................................... 31 ACCOUNTING AND AUDITS .......................................................................................... 32 Accounting Requirements ............................................................................................. 32 State Audit ..................................................................................................................... 32 Audit Checklist .............................................................................................................. 33 DEFINITIONS .................................................................................................................. 34 2017-11-07 Agenda Packet Page 45 Administration Guide for the Outdoor Environmental 1 Process for Grantees Education Facilities Grant Program PROCESS FOR GRANTEES Please contact OGALS with any questions or comments. Contact information for OGALS is provided on the front cover of this guide, and a list of PROJECT OFFICERS is available at www.parks.ca.gov/grants. The meanings of words and terms shown in SMALL CAPS are in the Definitions section starting on page 34. Start of Grant Performance Period: 1. Your GRANT PERFORMANCE PERIOD is July 1, 2017 through June 30, 2025, and will be shown on your CONTRACT.  ELIGIBLE COSTS incurred after the start of the GRANT PERFORMANCE PERIOD can be reimbursed once a CONTRACT is ENCUMBERED.  Costs incurred before or after the GRANT PERFORMANCE PERIOD are not eligible for REIMBURSEMENT. Contracts (page 3) 2. APPLICANTS become GRANTEES when their CONTRACT is ENCUMBERED. Payments (page 24) 3. GRANTEES may request payments after CONTRACTS are encumbered. GRANT funds may only be expended on ELIGIBLE COSTS incurred during the GRANT PERFORMANCE PERIOD.  Special Requirements: Status reports, a Deed Restriction, and a Fidelity Bond for Non-profit organizations are special requirements affecting payment requests. Refer to the Special Requirements section, on page 11. 4. GRANTEES request final payment after PROJECT COMPLETION by sending a GRANT COMPLETION PACKET to OGALS. OGALS conducts a final site inspection before final payment is approved. End of Grant Performance Period 5. GRANT funds liquidate at the end of the GRANT PERFORMANCE PERIOD, which is June 30, 2025. GRANT COMPLETION PACKETS must be sent to OGALS no later than March 31, 2025.  OGALS recommends that GRANTEES send GRANT COMPLETION PACKETS to OGALS by December 31, 2024. This will provide adequate time for OGALS to review GRANT COMPLETION PACKETS, request and receive revisions to GRANT COMPLETION PACKETS if necessary, conduct final site inspections, and process final payments through the State Controller’s Office.  OGALS cannot guarantee final payment, if GRANT COMPLETION PACKETS are received after March 31, 2025. 2017-11-07 Agenda Packet Page 46 Administration Guide for the Outdoor Environmental 2 Process for Grantees Education Facilities Grant Program Accounting and Audits (page 32) 6. DPR’s Audits Office may conduct an audit. The GRANTEE is required to keep all PROJECT records for five years following the final GRANT payment. End of the Contract Performance Period – Long Term Public Use 7. The CONTRACT PERFORMANCE PERIOD will be shown on your CONTRACT. By signing the CONTRACT, the GRANTEE agrees to the CONTRACT provisions including Section I. Use of Facilities found on page 8. The duration of the CONTRACT PERFORMANCE PERIOD depends on the GRANT amount:  GRANT amount less than $100,000: July 1, 2017 through June 30, 2037.  GRANT amount $100,000 or greater: July 1, 2017 through June 30, 2047. 2017-11-07 Agenda Packet Page 47 Administration Guide for the Outdoor Environmental 3 Grant Contract Education Facilities Program GRANT CONTRACT The following section contains a sample GRANT CONTRACT, and the CONTRACT provisions. State of California – Natural Resources Agency DEPARTMENT OF PARKS AND RECREATION Grant Contract GRANTEE _______________________________________________________________________________________________________ GRANT PERFORMANCE PERIOD is from ____________________________________ through ________________________________ CONTRACT PERFORMANCE PERIOD is from ________________________________ through ________________________________ PROJECT TITLE ___________________________________________________ APPLICATION NUMBER______________________ The GRANTEE agrees to the terms and conditions of this contract, hereinafter referred to as AGREEMENT, and the State of California, acting through its Director of Parks and Recreation, pursuant to the State of California, agrees to fund the total State grant amount indicated below according to the terms of this Agreement. The GRANTEE agrees to complete the GRANT SCOPE as defined in the GRANT SCOPE/Cost Estimate Form of the APPLICATION filed with the State of California referenced by the application number indicated above. Total State grant amount not to exceed $ ________________ The General and Special Provisions attached are made a part of and incorporated into the Contract. STATE OF CALIFORNIA DEPARTMENT OF PARKS AND RECREATION By ___________________________________________ ________________________________________________ Grantee By _________________________________________ Typed or printed name of Authorized Representative By _________________________________________ Signature of Authorized Representative Title _________________________________________ Date _________________________________________ Date _________________________________________ CERTIFICATION OF FUNDING (FOR STATE USE ONLY) AMOUNT OF ESTIMATE $ CONTRACT NUMBER FUND ADJ. INCREASING ENCUMBRANCE $ APPROPRIATION ADJ. DECREASING ENCUMBRANCE $ ITEM VENDOR NUMBER UNENCUMBERED BALANCE $ LINE ITEM ALLOTMENT CHAPTER STATUTE FISCAL YEAR T.B.A. NO. B.R. NO. INDEX PCA OBJ. EXPEND I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance. SIGNATURE OF ACCOUNTING OFFICER DATE 2017-11-07 Agenda Packet Page 48 Administration Guide for the Outdoor Environmental 4 Grant Contract Education Facilities Program I. RECITALS 1. This AGREEMENT is entered into between the California Departm ent of Parks and Recreation (hereinafter referred to as “GRANTOR,” or “STATE”) and ___________ (hereinafter referred to as “GRANTEE”). 2. The California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002 authorizes STATE to award grants to eligible entities for the purpose of Sections 5096.600 through 5096.683 43 of the Public Resources Code. 3. Pursuant to the California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002, STATE is authorized to oversee and manage grants to eligible entities for the purposes stated within its provisions. Funding for this grant program was made available through the California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002. 4. The STATE hereby grants to GRANTEE a sum (hereinafter referred to as “GRANT MONIES”) not to exceed __________________________ Dollars ($_____________), subject to the terms and conditions of this AGREEMENT, the GUIDES, any legisl ation applicable to the ACT, and the APPLICATION. 5. In consideration thereof GRANTEE agrees to abide by the terms and conditions of this AGREEMENT as well as the provisions of the ACT. GRANTEE acknowledges that the GRANT MONIES are not a gift or a donation. 6. In addition to the terms and conditions of this AGREEMENT, the parties agree that the terms and conditions contained in the documents set forth below are hereby incorporated into and made part of this AGREEMENT. a. The GRANT ADMINISTRATION GUIDE; b. The APPLICATION GUIDE; c. The submitted APPLICATION. II. GENERAL PROVISIONS A. Definitions As used in this AGREEMENT, the following words shall have the following meanings: 1. The term "ACT" means the statutory basis for these grant programs. 2. The term “APPLICATION” means the individual project application packet for a grant pursuant to the enabling legislation and/or grant program process guide requirements. 3. The term “CONTRACT PERFORMANCE PERIOD” means the period of time described in Section 1 of this AGREEMENT. 4. The term “COMPETITIVE GRANT PROGRAM” means the Outdoor Environmental Education Facilities Grant. 5. The term “DEVELOPMENT” means capital improvements to real property by means of construction of permanent or fixed features of the property. 6. The term “GRANT PERFORMANCE PERIOD” means the period of time described in the contract face sheet during which eligible costs can be charged to the grant and which begins on the date of appropriation and ends on the fund liquidation date. 2017-11-07 Agenda Packet Page 49 Administration Guide for the Outdoor Environmental 5 Grant Contract Education Facilities Program 7. The term “GRANT SCOPE” means the items listed in the GRANT SCOPE/Cost Estimate Form found in the APPLICATION. 8. The term “GUIDES” means the documents identified as the “Application Guide for the Outdoor Environmental Education Facilities Grant Program ” and the “Grant Administration Guide for the Outdoor Environmental Education Facilities Program.” The GUIDES provide the procedures and policies controlling the administration of the grant. 9. The term “PROPERTY” refers to every parcel of property to which grant funds will be used for the development and/or acquisition thereof. 10. The term “PROJECT TERMINATION” refers to the non-completion of a GRANT SCOPE. B. Project Execution 1. Subject to the availability of GRANT MONIES in the ACT, the STATE hereby grants to the GRANTEE a sum of money not to exceed the amount stated in Section I of this AGREEMENT, in consideration of, and on condition that, the sum be expended only in carrying out the purposes set forth in the GRANT SCOPE, and under the terms and conditions set forth in this AGREEMENT. The GRANTEE shall assume the obligation to furnish any additional funds that may be necessary to complete the GRANT SCOPE. 2. After STATE has approved the APPLICATION, all changes and alterations to the GRANT SCOPE must be first approved in writing by the STATE. GRANTEE’S failure to comply with this provision may be construed as a breach of the terms of the AGREEMENT and result in the termination of the project. To maintain the integrity of the COMPETITIVE GRANT PROGRAM, the GRANTEE agrees that any project changes or alterations which deviate from the intent of the project selection criteria provided by the GRANTEE in the original competitive APPLICATION must be submitted in writing to the STATE for prior approval. 3. The GRANTEE shall complete the GRANT SCOPE in accordance with the time of the GRANT PERFORMANCE PERIOD set forth in the contract face sheet, and under the terms and conditions of this contract. 4. The GRANTEE shall comply with the California Environmental Quality Act (Public Resources Code, Section 21000, et seq., Title 14, California Code of Regulations, Section 15000 et seq.). 5. The GRANTEE shall at all times comply with all applicable current laws and regulations affecting ACQUISITION and DEVELOPMENT projects, including, but not limited to, legal requirements for construction contracts, building codes, health and safety codes, and laws and codes pertaining to individuals with disabilities, including but not limited to the Americans With Disabilities Act of 1990 (42 U.S.C. §12101 et seq.) and the California Unruh Act (California Civil Code §51 et seq.) 6. If the GRANT SCOPE includes ACQUISITION of real property, the GRANTEE agrees to comply at all times with all applicable State and local laws or ordinances affecting relocation and real property ACQUISITION. 2017-11-07 Agenda Packet Page 50 Administration Guide for the Outdoor Environmental 6 Grant Contract Education Facilities Program 7. GRANTEE agrees that lands acquired with GRANT MONIES shall not be acquired through the use of eminent domain. C. Project Costs 1. GRANTEE agrees to abide by the GUIDES, as they may be updated by the STATE from time to time. 2. GRANTEE acknowledges that the STATE may make reasonable changes to its procedures as set forth in the GUIDES. If the STATE makes any changes to its procedures and guidelines, STATE agrees to notify GRANTEE within a reasonable time of such update. D. Project Administration 1. If GRANT MONIES are advanced, the advanced funds shall be placed in an interest bearing account until expended. Advanced funds must be spent within six months from the date of receipt, unless the STATE waives this requirement in writing. Interest earned on the advanced funds shall be used on the project as approved by the STATE. If GRANT MONIES are advanced and not expended, the unused portion of the grant and any interest earned shall be returned to the STATE within 60 days after project completion or end of the GRANT PERFORMANCE PERIOD whichever is earlier. 2. The GRANTEE shall submit written project status reports within 30 calendar days after the STATE has made a request for a project status report. The GRANTEE shall also provide the STATE a report showing total final project expenditures within 60 days of project completion or the end of the GRANT PERFORMANCE PERIOD, whichever is earlier. The GRANT PERFORMANCE PERIOD is identified in the contract face sheet. 3. The STATE shall have the right to inspect all PROPERTY or facilities acquired and/or developed pursuant to this contract and the GRANTEE shall make said PROPERTY available for inspection upon 24 hours’ notice from the STATE. 4. The GRANTEE and the STATE agree that if the GRANT SCOPE includes DEVELOPMENT, final payment to Grantee may not be made until the work described in the GRANT SCOPE is complete. 5. Any grant funds that have not been expended by the GRANTEE under the terms of this contract shall revert to the STATE. E. Project Termination 1. In the event of non-completion of a GRANT SCOPE, the STATE may request the return of any grant funds advanced or reimbursed to the Grantee. Any grant funds that have not been expended by the GRANTEE shall revert or be returned to the STATE. 2. Unless the provisions of this AGREEMENT provide otherwise, after encumbrance, this contract may be rescinded, modified or amended only by mutual written agreement between the GRANTEE and the STATE, unless the provisions of this AGREEMENT provide that mutual agreement is not required. 3. Failure by the GRANTEE to comply with any of the terms of this AGREEMENT as well as any other grant contracts, specified or general, that GRANTEE has entered into with 2017-11-07 Agenda Packet Page 51 Administration Guide for the Outdoor Environmental 7 Grant Contract Education Facilities Program STATE, may be cause for suspension of all obligations of the STATE unless the STATE determines that such failure was due to no fault of the GRANTEE. In such case, STATE may reimburse GRANTEE for eligible costs properly incurred in performance of this AGREEMENT despite non-performance of the GRANTEE. To qualify for such reimbursement, GRANTEE shall mitigate its losses to the best of its ability. 4. Because the benefit to be derived by the STATE, from the full compliance by the GRANTEE with the terms of this contract, is the preservation, protection and net increase in the quantity and quality of parks, public recreation facilities, opportunities and/or historical resources available to the people of the State of California and because such benefit exceeds to an immeasurable and unascertainable extent, the amount of money furnished by the STATE by way of GRANT MONIES under the provisions of this contract, the GRANTEE agrees that payment by the GRANTEE to the STATE of an amount equal to the amount of the GRANT MONIES disbursed under this AGREEMENT by the STATE would be inadequate compensation to the STATE for any breach by the GRANTEE of this AGREEMENT. The GRANTEE further agrees therefore, that in addition to compensatory damages, the appropriate remedy in the event of a breach of this AGREEMENT by the GRANTEE shall be the specific performance of this contract, unless otherwise agreed to by the STATE. F. Budget Contingency Clause For purposes of this program, if funding for any fiscal year is reduced or deleted by the State Budget Act, executive order, the legislature, or by any other provision of statute, the STATE shall have the option to either cancel this contract with no liability occurring to the STATE, or offer a contract amendment to GRANTEE to reflect a reduced grant amount. This Paragraph shall not require the mutual agreement of the parties. G. Indemnity 1. The GRANTEE shall waive all claims and recourse against the STATE including the right to contribution for loss or damage to persons or property arising from, growing out of or in any way connected with or incident to this contract except claims arising from the concurrent or sole negligence of the STATE, its officers, agents, and employees. 2. To the fullest extent of the law, the GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, damages, costs, expenses and liability costs arising out of the DEVELOPMENT, construction, operation or maintenance of the PROPERTY described as the project or GRANT SCOPE which claims, demands or causes of action arise under California Government Code Section 895.2 or otherwise except for liability arising out of the concurrent or sole negligence of the STATE, its officers, agents, or employees. 3. The GRANTEE agrees that in the event the STATE is named as codefendant under the provisions of California Government Code Section 895 et seq., the GRANTEE shall notify the STATE of such fact and shall represent the STATE in the legal action unless the STATE undertakes to represent itself as codefendant in such legal action in which event the STATE shall bear its own litigation costs, expenses, and attorney’s fees. 2017-11-07 Agenda Packet Page 52 Administration Guide for the Outdoor Environmental 8 Grant Contract Education Facilities Program 4. The GRANTEE and the STATE agree that in the event of judgment entered against the STATE and the GRANTEE because of the concurrent negligence of the STATE and the GRANTEE, their officers, agents, or employees, an apportionment of liability to pay such judgment shall be made by a court of competent jurisdiction. Neither party shall request a jury apportionment. 5. The GRANTEE shall indemnify, hold harmless and defend the STATE, its officers, agents and employees against any and all claims, demands, costs, expenses and liability costs arising out of legal actions pursuant to items to which the GRANTEE has certified. The GRANTEE acknowledges that it is solely responsible for compliance with items to which it has certified. H. Financial Records 1. The GRANTEE shall maintain satisfactory financial accounts, documents and records for the project and GRANT SCOPE and to make them available to the STATE for auditing at reasonable times. The GRANTEE also agrees to retain such financial accounts, documents and records for five years following project and GRANT SCOPE termination or final payment, whichever is later. 2. The GRANTEE shall keep such records as the STATE shall prescribe, including records which fully disclose (a) the disposition of the proceeds of STATE funding assistance, (b) the total cost of the project and GRANT SCOPE in connection with such assistance that is given or used, (c) the amount and nature of that portion of the GRANT SCOPE and project cost supplied by other sources, and (d) any other such records that will facilitate an effective audit. 3. The GRANTEE agrees that the STATE shall have the right to inspect and make copies of any books, records or reports pertaining to this contract or matters related thereto during GRANTEE’S regular office hours. The GRANTEE shall maintain and make available for inspection by the STATE accurate records of all of its costs, disbursements and receipts with respect to its activities under this contract. Such accounts, documents, and records shall be retained by the GRANTEE for 5 years following final payment. 4. The GRANTEE shall use a generally accepted accounting system. I. Use of Facilities 1. The GRANTEE agrees to operate and maintain any PROPERTY developed with the GRANT MONIES for the duration of the CONTRACT PERFORMANCE PERIOD. 2. The GRANTEE agrees that during the CONTRACT PERFORMANCE PERIOD, any income earned by the GRANTEE from a STATE approved non-recreational use of the project shall be used for recreational purposes at the project, or, if approved by the STATE, for recreational purposes within the GRANTEE’s jurisdiction. 3. All facilities shall have operating hours consistent with the times proposed in the APPLICATION and be open to members of the public in accordance with the project selection criteria in the APPLICATION, unless otherwise granted permission by the State and except as noted under the special provisions of this AGREEMENT or under provisions of the enabling legislation and/or grant program. 2017-11-07 Agenda Packet Page 53 Administration Guide for the Outdoor Environmental 9 Grant Contract Education Facilities Program 4. The GRANTEE agrees that for the duration of the CONTRACT PERFORMANCE PERIOD, any PROPERTY developed with GRANT MONIES under this AGREEMENT shall be used only for the purposes of the grant and consistent with the GRANT SCOPE referenced in the APPLICATION unless prior written approval is given by the STATE. 5. The GRANTEE agrees to use any PROPERTY developed with GRANT MONIES under this AGREEMENT only for the purposes of the grant and no other use, sale, or other disposition shall be permitted except as authorized by a specific act of the legislature in which event the PROPERTY shall be replaced by the GRANTEE with PROPERTY of equivalent value and usefulness as determined by STATE. 6. The PROPERTY developed may be transferred to another eligible entity only if the successor entity assumes the obligations imposed under this AGREEMENT and with written approval of the STATE. 7. Any real PROPERTY (including any portion of it or any interest in it) may not be used as security for any debt or mitigation, without the written approval of the State of California, acting through the DPR, or its successor, provided that such approval shall not be unreasonably withheld as long as the purposes for which the Grant was awarded are maintained. Any such permission that is granted does not make DPR a guarantor or a surety for any debt or mitigation, nor does it waive DPR’s rights to enforce performance under the Grant Contract. 8. If eminent domain proceedings are initiated against GRANTEE, GRANTEE shall notify STATE within 10 days of receiving the complaint or other notice of the initiation of such proceedings. J. Nondiscrimination 1. The GRANTEE shall not discriminate against any person on the basis of sex, race, creed, color, national origin, age, religion, ancestry, sexual orientation, disability, medical condition, or marital status in the use of a specific facility included in the GRANT SCOPE. 2. The GRANTEE shall not discriminate against any person on the basis of residence, and shall not apply differences in admission or other fees on the basis of residence. Fees shall be reasonable and not unduly prevent use by economically disadvantaged members of the public. K. Severability If any provision of this AGREEMENT or the application thereof is held invalid, that invalidity shall not affect other provisions or applications of the AGREEMENT which can be given effect without the invalid provision or application, and to this end the provisions of this contract are severable. L. Liability STATE assumes no responsibility for assuring the safety of construction, site improvements or programs related to the GRANT SCOPE. The STATE’S rights under this AGREEMENT to review, inspect and approve the GRANT SCOPE and any final plans of implementation 2017-11-07 Agenda Packet Page 54 Administration Guide for the Outdoor Environmental 10 Grant Contract Education Facilities Program shall not give rise to any warranty or representation that the GRANT SCOPE and any plans or improvements are free from hazards or defects. M. Assignability Without the written consent of the STATE, the GRANTEE’S interest in and responsibilities under this AGREEMENT shall not be assignable by the GRANTEE either in whole or in part. Any attempts by GRANTEE to make such an assignment are void. N. Section Headings The headings and captions of the various sections of this AGREEMENT have been inserted only for the purpose of convenience and are not a part of this AGREEMENT and shall not be deemed in any manner to modify, explain, or restrict any of the provisions of this AGREEMENT. O. Waiver Any failure by a party to enforce its rights under this AGREEMENT, in the event of a breach, shall not be construed as a waiver of said rights; and the waiver of any breach under this AGREEMENT shall not be construed as a waiver of any subsequent breach. ______________________________________ Grantee By: ___________________________________ Signature of Authorized Representative (Position Authorized in the Resolution) Title: _________________________________ Date: _________________________________ 2017-11-07 Agenda Packet Page 55 Administration Guide for the Outdoor Environmental 11 Special Requirements Education Facilities Program SPECIAL REQUIREMENTS Pages 12-21 explain how and when each of the special requirements listed below must be met. The Grant Payments section starting on page 27 also lists when these items are required for each type of payment request.  Status Reports (page 12)  Deed Restriction (page 13)  Scope Change Requests (page 19) Additional Requirements for Non-profit GRANTEES:  Fidelity Bond (page 20)  Three-Bid Process (page 21) 2017-11-07 Agenda Packet Page 56 Administration Guide for the Outdoor Environmental 12 Status Report Education Facilities Program Status Report To monitor the progress of PROJECTs, every six months, OGALS will send Status Reports to GRANTEES to complete. GRANTEES must return Status Reports to OGALS within thirty days from receipt. This requirement continues until OGALS receives GRANT COMPLETION PACKETS. Payment requests will not be processed if Status Reports are overdue . See the sample Status Report below, which is subject to change. Status Report Grantee: Project Number: Project Name: Advances to date without documentation (attach a Grant Expenditure Form documenting expenditure of the balance, if applicable): If a portion of the advanced funds have not been spent, and more than six months have passed since the Grantee received the advanced funds, the balance must be spent on eligible costs or returned to OGALS within 60 days from receipt of this form. Briefly describe completed work funded by the grant: (Continue on another sheet if needed.) Pre-Construction/Pre-Acquisition (Planning, CEQA, etc.): 1) __________________________________________________________________ __________________________________________________________________ Acquisition and/or Construction (provide photos) 2) __________________________________________________________________ __________________________________________________________________ Potential Obstacles Affecting Completion 3) __________________________________________________________________ __________________________________________________________________ 4) Total Funds Spent To Date Using This Grant $_____________ 5) Percentage of Project Complete:__________ 6) Estimated Date of Project Completion: __________ I represent and warrant that I have full authority to execute this Grant Progress Status Report on behalf of the Grantee. I declare under penalty of perjury, under the laws of the State of California, that this status report, and any accompanying documents, for the above-mentioned Grant is true and correct to the best of my knowledge. __________________________ _______________________ _____________ Authorized Representative* Title Date (*Certification to above information requires a signature by a person authorized in the resolution) 2017-11-07 Agenda Packet Page 57 Administration Guide for the Outdoor Environmental 13 Deed Restriction Education Facilities Program Deed Restriction The Deed Restriction is a restriction on the title to the property, which ensures that the property is used for a purpose consistent with the GRANT for the duration of the CONTRACT PERFORMANCE PERIOD. A Deed Restriction is not required if the GRANTEE does not own the PROJECT land, such as lease agreements. A Deed Restriction is required if the GRANTEE owns the PROJECT land. A deed restriction must be recorded on the title to the property before OGALS will approve any grant payments. Deed Restriction Instructions 1. Before filing the deed restriction, the GRANTEE must own the PROJECT land, and have an ENCUMBERED CONTRACT for the GRANT amount. 2. The PROJECT OFFICER will send the Deed Restriction form to the GRANTEE. Fill in all the blank spaces of the Deed Restriction form as indicated below. Do not alter the Deed Restriction form. Page 1: I. WHEREAS, _________________________ (hereinafter referred to as “Owner(s)” Insert ownership information as it appears on the deed. Page 3: 5. SEVERABILITY. Dated: _________________________, 20 ___ Insert the date the Deed Restriction is signed by the GRANTEE’s Authorized Representative (the position identified on the Grant Contract face sheet) in the presence of a notary. Business Name (if property is owned by a business): _________________________________________ Signed: __________________________ Signed: _________________________ __________________________ __________________________ PRINT/TYPE NAME & TITLE OF ABOVE PRINT/TYPE NAME & TITLE OF ABOVE (GRANTEE’S AUTHORIZED REPRESENTATIVE) (ADDITIONAL SIGNATURE, AS REQUIRED) The GRANTEE’s Authorized Representative (the position identified on the Grant Contract face sheet) signs in the presence of a notary. Additional signature lines may be added if multiple signatures are required. Attachments: (1) A page entitled, “Exhibit A (Legal Description of Property)” (2) Exhibit A: A formal legal description of every parcel of property to which grant funds will be used for the development and/or acquisition thereof . This 2017-11-07 Agenda Packet Page 58 Administration Guide for the Outdoor Environmental 14 Deed Restriction Education Facilities Program information can be obtained from the grant deed or tit le policy. (NOTE: The assessor’s parcel number or a street address is NOT a valid legal description.), and, (3) Exhibit B: A complete copy of the Grant Contract signed by the GRANTEE and the State of California with Grant Contract provisions attached. 3. Notarize it: Take the unsigned Deed Restriction form, “Exhibit A”, and “Exhibit B”, to a notary. The GRANTEE’s Authorized Representative (the position identified on the Grant Contract face sheet) signs the Deed Restriction form signature page in the presence of a notary. The notary then completes the “Notary Acknowledgement” section. 4. Record it: Take the notarized Deed Restriction form, “Exhibit A”, and “Exhibit B”, to the County Recorder’s Office of the county in which the property is located and ask the County Clerk to “record the Deed Restriction form, Exhibit A, and Exhibit B, on the title to the property.” 5. Send it: Send a copy of the notarized and recorded Deed Restriction form, “Exhibit A”, and “Exhibit B” to the OGALS PROJECT OFFICER. 2017-11-07 Agenda Packet Page 59 Administration Guide for the Outdoor Environmental 15 Deed Restriction Education Facilities Program RECORDING REQUESTED BY: California Department of Parks and Recreation Office of Grants and Local Services WHEN RECORDED MAIL TO: Office of Grants and Local Services PO Box 942896 Sacramento, CA 94296-0001 Attn: [Project Officer] DEED RESTRICTION I. WHEREAS, [formal name of Grantee] (hereinafter referred to as “Owner(s)” is/are recorded owner(s) of the real property described in Exhibit A, attached and incorporated herein by reference (hereinafter referred to as the “Property”); and II. WHEREAS, the California Department of Parks and Recreation (hereinafter referred to as “DPR”) is a public agency created and existing under the authority of section 5001 of the California Public Resources Code (hereinafter referred to as the “PRC”). And III. WHEREAS, Owner(s) (or Grantee) applied to DPR for grant funds available pursuant to the California Clean Water, Clean Air, Safe Neighborhood Parks, and Coastal Protection Act of 2002 for improvements on the Property; and IV. WHEREAS, on (enter date), DPR’s Office of Grants and Local Services conditionally approved Grant [project number], (hereinafter referred to as “Grant”) for improvements on the Property, subject to, among other conditions, recordation of this Deed Restriction on the Property; and V. WHEREAS, but for the imposition of the Deed Restriction condition of the Grant, the Grant would not be consistent with the public purposes of the Outdoor Environmental Facilities Grant Program and the funds that are the subject of the Grant could therefore not have been granted; and 2017-11-07 Agenda Packet Page 60 Administration Guide for the Outdoor Environmental 16 Deed Restriction Education Facilities Program VI. WHEREAS, Owner(s) has/have elected to comply with the Deed Restriction of the Grant, so as to enable Owner(s), to receive the Grant funds and perform the work described in the Grant; NOW, THEREFORE, in consideration of the issuance of the Grant funds by DPR, the undersigned Owner(s) for himself/herself/themselves and for his/her/their heirs, assigns, and successors-in-interest, hereby irrevocably covenant(s) with DPR that the condition of the grant (set forth at paragraph(s) 1 through 5 and in Exhibit B hereto) shall at all times on and after the date on which this Deed Restriction is recorded constitute for all purposes covenants, conditions and restrictions on the use and enjoyment of the Property that are hereby attached to the deed to the Property as fully effective components thereof. 1. DURATION. This Deed Restriction shall remain in full force and effect and shall bind Owner(s) and all his/her/their assigns or successors-in-interest for the period running from July 1, 2017 to June 30, 2037 (20 years) or June 30, 2047 (30 years). 1. TAXES AND ASSESMENTS. It is intended that this Deed Restriction is irrevocable and shall constitute an enforceable restriction within the meaning of a) Article XIII, section 8, of the California Constitution; and b) section 402.I of the California Revenue and Taxation Code or successor statue. Furthermore, this Deed Restriction shall be deemed to constitute a servitude upon and burden to the Property within the meaning of section 3712(d) of the California Revenue and Taxation Code, or successor statue, which survives a sale of tax- deeded property. 2. RIGHT OF ENTRY. DPR or its agent or employees may enter onto the Property at times reasonably acceptable to Owner(s) to ascertain whether the use restrictions set forth above are being observed. 3. REMEDIES. Any act, conveyance, contract, or authorization by Owner(s) whether written or oral which uses or would cause to be used or would permit use of the Property contrary to the terms of this Deed Restriction will be deemed a violation and a breach 2017-11-07 Agenda Packet Page 61 Administration Guide for the Outdoor Environmental 17 Deed Restriction Education Facilities Program hereof. DPR may pursue any and all available legal and/or equitable remedies to enforce the terms and conditions of this Deed Restriction up to and including a lien sale of the Property. In the event of a breach, any forbearance on the part of DPR to enforce the terms and provisions hereof shall not be deemed a waiver of enforcement rights regarding such breach, or any subsequent breach. 4. SEVERABILITY. If any provision of these restrictions is held to be invalid, or for any reason becomes unenforceable, no other provision shall be affected or impaired. Dated: ______________________, 20 ____ Business Name (if property is owned by a business): _________________________________________ Signed: __________________________ Signed: _________________________ ___________________________ __________________________ PRINT/TYPE NAME & TITLE OF ABOVE PRINT/TYPE NAME & TITLE OF ABOVE (GRANTEE’S AUTHORIZED REPRESENTATIVE) (ADDITIONAL SIGNATURE, AS REQUIRED) **NOTARY ACKNOWLEDGEMENT ON THE NEXT PAGE** 2017-11-07 Agenda Packet Page 62 Administration Guide for the Outdoor Environmental 18 Deed Restriction Education Facilities Program State of California County of _______________ On __________________ before me, __________________________, a Notary Public, personally appeared _____________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature ______________________________ (Seal) 2017-11-07 Agenda Packet Page 63 Administration Guide for the Outdoor Environmental 19 Scope Change Requests Education Facilities Program Scope Change Requests To maintain the integrity of the competitive grant award process, a SCOPE CHANGE request will be carefully evaluated and must be approved by OGALS in writing (see CONTRACT provision B.2.). This includes removal or addition of, or significant modification to, the scope items listed in the original GRANT SCOPE/Cost Estimate Form. OGALS discourages proposals that eliminate or greatly reduce a PROJECT’S recreational use or capacity. Therefore, SCOPE CHANGE proposals must include the documents listed below. Any revised documents must satisfy the requirements described in the Application Checklist in the Application Guide for the related program . In addition, each document must include a revision date on the top right corner. 1. A proposal letter signed by the AUTHORIZED REPRESENTATIVE. Contact your PROJECT OFFICER to confirm the information that must be included in the letter. The type of information varies based on the proposed SCOPE CHANGE. In general you will need to include:  A description of the proposed SCOPE CHANGE, including a comparison between the original GRANT SCOPE and the proposed GRANT SCOPE’S range of recreational opportunities, projected number of users, and projected operating hours.  An explanation of why the scope change is necessary.  A comparison of the community based planning process used, if applicable, to develop the original GRANT SCOPE and the proposed GRANT SCOPE.  If the requested SCOPE CHANGE is due to an unforeseen shortage of funds, provide information about your attempts to obtain funding from other local, state, federal, or private sources to complete the original GRANT SCOPE. 2. A revised GRANT SCOPE/Cost Estimate Form. 3. A new CEQA Compliance Certification Form if the change involves adding a scope item not covered by the existing CEQA Compliance Certification Form. 4. A revised site plan showing the addition, removal, or modification of the scope item(s). 2017-11-07 Agenda Packet Page 64 Administration Guide for the Outdoor Environmental 20 Fidelity Bond Education Facilities Program Fidelity Bond (For Non-profit GRANTEES only) Non-profit GRANTEES must provide a copy of a current Fidelity Bond policy to their PROJECT OFFICERS before any payment requests can be approved by OGALS. The premium for a Fidelity Bond is an ELIGIBLE COST. A Fidelity Bond provides insurance covering fraudulent acts of GRANTEES’ employees, volunteers, officers, and directors. The GRANTEE is the insured party. DPR must be named as a Third Party Loss Payee, i.e., the same as a mortgage company on a home loan. The DPR address is: State of California, Dept. of Parks and Recreation, P .O. Box 942896, Sacramento, CA 94296-0001, Attn: Office of Grants and Local Services. Coverage must be at least equal to the GRANT amount. Fidelity Bond insurance must be kept current for at least six months after the date of the final GRANT payment. GRANTEES may obtain the Fidelity Bond through a general liability carrier, a major casualty insurance carrier, or a bonds specialty company. A list of Fidelity Bond frequently asked questions is available on the OGALS web site at www.parks.ca.gov/grants 2017-11-07 Agenda Packet Page 65 Administration Guide for the Outdoor Environmental 21 Three-Bid Process Education Facilities Program Three-Bid Process (For Non-profit GRANTEES only) Non-profit GRANTEES must attempt to obtain three bids before awarding a contract on a GRANT-funded PROJECT for services (greater than $5,000), and for construction work (greater than $25,000), thus ensuring state funds are spent responsibly. Process: 1. Non-profit GRANTEE attempts to obtain three bids for services (greater than $5,000) and for construction work (greater than $25,000). 2. To ensure that bidders understand the required PROJECT elements, the non-profit GRANTEE provides each bidder (potential contractor) the same written invitation for bid describing the PROJECT work to be performed based on “Best Value” factors, and the required PROJECT elements based on the Grant Scope/Cost Estimate Form, and concept level site plan. 3. Solicit bids by contacting at least three potential contractors or by invitation for bids advertising, or a combination of both methods. The non-profit GRANTEE’s Board of Directors evaluates the bids to determine which contractor will provide the “best value” and will meet PROJECT requirements. “Best value” should be determined by price, quality of materials, equipment, and workmanship. The evaluation process must ensure no conflict of interest between the contractor and the non-profit GRANTEE’s Board of Directors. The non-profit GRANTEE’s Board of Directors need not necessarily accept the lowest bid, but a reasonable justification for the decision should be recorded in writing. 4. The Board of Directors selects a contractor and awards a contract. 5. For audit purposes, the GRANTEE keeps records of Steps 1 – 4 above. Waiver of Three-Bid Requirement The non-profit GRANTEE may request a waiver of the three-bid process requirement. To request a waiver, the GRANTEE must send a written request to the PROJECT OFFICER assigned to the grant PROJECT and explain why a waiver is required. 2017-11-07 Agenda Packet Page 66 Administration Guide for the Outdoor Environmental 22 Eligible Costs Education Facilities Program ELIGIBLE AND INELIGIBLE COSTS NON-CONSTRUCTION COSTS include expenses incurred prior to ground breaking, as well as costs associated with grant administration. No more than 25% of the GRANT amount may be spent on NON-CONSTRUCTION COSTS. Additionally, if the Grantee committed match for this project, these costs are not eligible for REIMBURSEMENT. ELIGIBLE CONSTRUCTION COSTS Up to 100% of GRANT Amount (Only within the PROJECT SITE ) EXAMPLES  Site preparation, grading, demo  Installation of natural turf or other surface  Purchase and installation of permanent equipment: i.e., sprinkler systems, software (as part of a new system), basketball standards, backstops, goal posts, field lighting.  Construction supplies and materials: may be drawn from central stock if claimed costs are no higher than supplies or materials purchased elsewhere.  Construction equipment owned by GRANTEE: may be charged to the GRANT for each use. Rental rates published by the California Department of Transportation may be used as a guide. For audit purposes, a report or source document must describe the work performed, indicate the hours used, relate the use to the GRANT SCOPE, and must be signed by the operator or supervisor.  Construction equipment rented or purchased by GRANTEE: whichever is the most economical use of grant funds. For purchased equipment, the GRANT will pay for the rental price equivalent in proportion to the time the purchased equipment is used on the GRANT SCOPE (Rental rates published by the California Department of Transportation may be used as a guide). The GRANT will pay for the total cost of the equipment if the purchase price is less than the rental price equivalent. Any funds earned by the GRANTEE from the sale of equipment purchased with the GRANT must be spent on the PROJECT.  Construction management: i.e., scheduling mobilization, directing equipment, materials, construction personnel, site inspections  Employee services: for direct costs related to construction. Time and attendance records must be maintained as charges are incurred, recording the actual time spent on the PROJECT, and describing the specific work. Salary and wages must be calculated according to the GRANTEE’S wage and salary scales, and may include benefits. For more information see the accounting rules for employee services explained in the GRANT ADMINISTRATION GUIDE. 2017-11-07 Agenda Packet Page 67 Administration Guide for the Outdoor Environmental 23 Eligible Costs Education Facilities Program INELIGIBLE COSTS Cannot be charged to the GRANT EXAMPLES  Outside the GRANT PERFORMANCE PERIOD: costs incurred before or after the GRANT PERFORMANCE PERIOD.  Indirect costs: overhead business expenses of the GRANTEE’S fixed or ordinary operating costs: (rent, mortgage payments, property taxes, utilities, office supplies).  Beautification/Landscaping that doesn’t directly support the recreation venue  Software (not related to the GRANT SCOPE)  Acquisition Costs  Outside PROJECT SITE boundaries: streets, traffic lights, electricity, water mains or other infrastructure not located within the PROJECT SITE.  CEQA Costs  Fundraising  Food  Grant Writing ELIGIBLE NON-CONSTRUCTION COSTS Maximum 25% of GRANT amount (Only eligible for reimbursement if not receiving match points) EXAMPLES  Plans, specifications, construction documents, and cost estimates  Permits  Premiums on hazard and liability insurance to cover personnel or property  Fidelity bond premium cost for nonprofits: see page 20  Bid package preparation and process  Employee services: for direct costs related to grant administration/accounting. Time and attendance records must be maintained as charges are incurred, recording the actual time spent on the PROJECT, and describing the specific work. Salary and wages must be calculated according to the GRANTEE’S wage and salary scales, and may include benef its. For more information see the accounting rules for employee services explained in the GRANT ADMINISTRATION GUIDE.  Grant administration/accounting: i.e., completion and submission of forms, payment requests. 2017-11-07 Agenda Packet Page 68 Administration Guide for the Outdoor Environmental 24 Grant Payments Education Facilities Program GRANT PAYMENTS This section is organized by the three types of payments:  ADVANCE payments (see below)  REIMBURSEMENT payments (see page 25)  Final payment (see page 26) GRANT payments before the final payment may not exceed 80% of the GRANT amount. 20% of the GRANT amount is retained for the final payment as a REIMBURSEMENT. The GRANTEE should group costs together to avoid frequent payment requests . Payment requests greater than $10,000 are encouraged. Payment requests are processed through the State Controller’s Office and are mailed to the GRANTEE approximately six weeks f rom the date the request is approved by OGALS. OGALS will not approve payment requests if they do not meet the requirements described in this GRANT ADMINISTRATION GUIDE. Advance Payments ADVANCE payments are made at the discretion of OGALS. OGALS considers ADVANCE payments as a privilege and reserves the right to disapprove ADVANCE payments. There are two types of ADVANCE payments: NON-CONSTRUCTION ADVANCE and CONSTRUCTION ADVANCE NON-CONSTRUCTION ADVANCE Payment Type When to Request Documents to Send to PROJECT OFFICER NON- CONSTRUCTION ADVANCE(s) up to 25% of GRANT amount After the GRANT CONTRACT has been ENCUMBERED  Payment Request Form  Payment Schedule and reason (see page 25)  Deed Restriction (if the land is owned by GRANTEE)  Fidelity bond for non-profit GRANTEES CONSTRUCTION ADVANCE Payment Type When to Request Documents to Send to PROJECT OFFICER ADVANCE(s) up to 50% of GRANT amount After the GRANT CONTRACT has been ENCUMBERED, and construction will commence during the next six months  Payment Request Form  Payment Schedule and Reason (see page 25)  Copy of signed construction contract and a notice to proceed (between GRANTEE and contractor). If this not applicable, state on the Payment Schedule that GRANTEE’S own employees will perform the construction.  Deed Restriction (if the land is owned by GRANTEE)  Fidelity bond for non-profit GRANTEES 2017-11-07 Agenda Packet Page 69 Administration Guide for the Outdoor Environmental 25 Grant Payments Education Facilities Program Payment Schedule and Reason A payment schedule is required for an ADVANCE. The payment schedule must provide the following information:  A month by month estimate, up to six months, showing the anticipated amount needed.  To which entity the GRANTEE will pay using the ADVANCED funds (FORCE ACCOUNT or name of contractors).  An explanation about why an ADVANCE is needed, instead of requesting a REIMBURSEMENT after the GRANTEE incurs the costs. Six Month Advance Period -- Documenting expenditure of advanced funds and interest GRANT funds ADVANCED and any interest earned, must be spent on ELIGIBLE COSTS within six months and documented on the Grant Expenditure Form. All invoices and contracts pursuant to which payments are made shall be made available to OGALS on demand. Six Month Advance Period -- Returning Unexpended Advanced Funds or Interest The balance of unspent GRANT funds must be returned to OGALS no later than thirty days after the end of the six month ADVANCE period. OGALS will then return the GRANT funds to the CONTRACT balance. OGALS cannot return interest to the CONTRACT balance.  If interest was earned on the ADVANCED funds, spend the interest on ELIGIBLE COSTS, and return the unspent GRANT funds to OGALS. Subsequent Advances A Grant Expenditure Form documenting expenditure of the total amount of previously ADVANCED funds plus interest must be provided to OGALS before additional payments can be approved.  This requirement may be waived in cases where a PROJECT requires timely payments to contractors, and the remaining balance of unspent ADVANCED funds cannot cover the next PROJECT payment. The following items are required to request a waiver: 1. A letter to the PROJECT OFFICER, signed by the AUTHORIZED REPRESENTATIVE, explaining why the waiver is needed. 2. A Grant Expenditure Form documenting that the majority of ADVANCED funds have been spent. 3. A payment schedule with a month by month estimate showing the anticipated amount needed including the unspent balance of previously ADVANCED funds, along with the additional requested ADVANCE. Reimbursement Payments There are two types of REIMBURSEMENT payments before the final payment, NON- CONSTRUCTION REIMBURSEMENT and CONSTRUCTION REIMBURSEMENT. 2017-11-07 Agenda Packet Page 70 Administration Guide for the Outdoor Environmental 26 Grant Payments Education Facilities Program NON-CONSTRUCTION REIMBURSEMENT Payment Type When to Request Document to Send to PROJECT OFFICER NON-CONSTRUCTION REIMBURSEMENT(s) up to 25% of GRANT amount After the CONTRACT has been ENCUMBERED  Payment Request Form  Grant Expenditure Form  Deed Restriction (if the land is owned by GRANTEE)  Fidelity Bond for non-profit GRANTEES. CONSTRUCTION REIMBURSEMENT Final Payments For the recommended deadline to request a final payment, see page 1, item 5. The final payment (20% retention of the GRANT amount) will be processed after PROJECT COMPLETION and the following is approved by OGALS: 1. Approval of the GRANT COMPLETION PACKET (see page 30) and additional required documents in the charts below. 2. Site inspection by the PROJECT OFFICER to verify PROJECT COMPLETION. Payment Type When to Request Documents to Send to PROJECT OFFICER Final reimbursement (20% retention of GRANT amount) After the GRANTEE completes the GRANT SCOPE  GRANT COMPLETION PACKET  Deed Restriction (if the land is owned by GRANTEE)  Fidelity bond for non-profit GRANTEES. Payment Type When to Request Documents to Send to PROJECT OFFICER REIMBURSEMENT of up to 80% of GRANT amount before final payment After the CONTRACT is ENCUMBERED and the GRANTEE incurred costs for work related to the GRANT SCOPE  Payment Request Form  Grant Expenditure Form  Construction progress photos  Deed Restriction (if the land is owned by GRANTEE)  Fidelity Bond for non-profit GRANTEES. 2017-11-07 Agenda Packet Page 71 Administration Guide for the Outdoor Environmental 27 Payment Request Form Education Facilities Program Payment Request Form 2017-11-07 Agenda Packet Page 72 Administration Guide for the Outdoor Environmental 28 Payment Request Form Education Facilities Program 2017-11-07 Agenda Packet Page 73 Administration Guide for Outdoor Environmental 29 Grant Expenditure Form Education Facilities Program GRANT Expenditure Form PROJECT Number_______________________ Warrant/Check # (1) Date (2) Recipient (3) Purpose (4) Non- Construction Amount (5) Construction Amount (6) _________________________________________________________________________ NON-CONSTRUCTION Subtotal (5) $_____________ Construction Subtotal (6) $_____________ Grand Total (5) + (6) $_____________ List only ELIGIBLE COSTS charged to the GRANT. Column (1) Use of electronic payment numbers/electronic funds transfer numbers in the “Warrant/Check Number” column is acceptable. Please include an “EP” next to the electronic payment numbers/electronic funds transfer numbers. If FORCE ACCOUNT LABOR or GRANTEE’S own equipment was used, a work order or other tracking number can be used instead of a check/warrant number (see page 32). Column (2) Date payment was made to recipient. If FORCE ACCOUNT LABOR was used, the date that the work was performed may be used. Column (3) Name of Contractor, FORCE ACCOUNT LABOR, or other entity performing work. Column (4) Brief description of cost, such as “design”, “permits”, “construction.” When describing such costs, such as “design”, state what the design is for, and who prepared it . For items such as “permits”, state what kind of permit(s). For items such as “construction,” state what type or portion of construction, or what was constructed. (For instance, “framing for kiosk”, “cement walkway”, etc.) Column (5) NON-CONSTRUCTION costs subject to the 25% cap (see ELIGIBLE COSTS, page 22). Column (6) DEVELOPMENT costs eligible for up to 100% of GRANT amount. (see ELIGIBLE COSTS, page 22). An electronic version of this form is available at www.parks.ca.gov/grants. GRANTEES may use their own spreadsheet if it contains the required information shown above. 2017-11-07 Agenda Packet Page 74 Administration Guide for the Outdoor Environmental 30 Grant Completion Packet Education Facilities Program Grant Completion Packet To request the final payment and close out the GRANT, the GRANTEE must provide the following three documents after PROJECT COMPLETION. (For the recommended deadline to request a final payment, see page 1, item 5.) 1. Payment Request Form (page 27) 2. GRANT Expenditure Form (page 29) 3. PROJECT COMPLETION Certification (page 31) OGALS recommends that the GRANTEE file a “Notice of Completion” with the County Recorder pursuant to Civil Code §3093. The purpose of the “Notice of Completion” is to limit the period of time when a mechanic’s lien may be recorded against a construction project. Filing the “Notice of Completion” is not a GRANT completion requirement. 2017-11-07 Agenda Packet Page 75 Administration Guide for the Outdoor Environmental 31 Project Completion Certificate Education Facilities Program PROJECT COMPLETION Certification Grantee: ____________________PROJECT Number: _________________ Grantee contact for audit purposes Name: ___________________________________________________________ Address: _________________________________________________________ Phone: (___) ________________ Email: _____________________________ PROJECT COMPLETION – list the FEATURES and MAJOR SUPPORT AMENITIES developed and/or the property acquired (use additional pages, if needed): List other funds (sources and amounts) used on Project (use additional pages, if needed): Interest earned on advanced Grant funds: $ _____________ Interest spent on ELIGIBLE COSTS: $______________ Did the Grantee file a “Notice of Completion” with the county recorder? Yes ___ No ___ Certification: I hereby certify that all Grant funds were expended on the above named Project and that the Project is complete and we have made final payment for all work charged to the Grant. I have read California Penal Code §118 and understand that every person who testifies, declares, deposes, or certifies under penalty of perjury and willfully states as true any material matter which he or she knows to be false, is guilty of perjury, which is a felony punishable by imprisonment in state prison for two, three, or four years. Furthermore, I have read California Penal Code §72 and understand that every person who, with the intent to defraud, presents for allowance or for payment to any state board or officer, or to any county, city, or District board or officer, authorized to allow or pay the same if genuine, any false or fraudulent claim, bill, account, voucher, or writing, is guilty of a felony-misdemeanor punishable either by imprisonment in county jail for a period of not more than one year, by a fine not exceeding one thousand dollars, or both, or by imprisonment in state prison, by a fine not exceeding ten thousand dollars, or both. I represent and warrant that I have full authority to execute this Project Completion Certification on behalf of the Grantee. I declare under penalty of perjury that the foregoing certification of Project Completion for the above-mentioned Grant is true and correct. _______________________________ ______________________________________ Grantee’s AUTHORIZED REPRESENTATIVE Title of the position authorized in the Resolution (Printed or typed name) _______________________________ _____________________________ Grantee’s AUTHORIZED REPRESENTATIVE Date (Signature) 2017-11-07 Agenda Packet Page 76 Administration Guide for the Outdoor Environmental 32 Accounting and Audits Education Facilities Program ACCOUNTING AND AUDITS Contact the DPR Audits Office at (916) 657-0370 for questions about the following requirements: Accounting Requirements Grantees must use accounting practices that:  Provide accounting data that clearly records costs incurred on the PROJECT and accurately reflects fiscal transactions, with the necessary controls and safeguards.  Provide good audit trails, especially the source documents (purchase orders, receipts, progress payments, invoices, time cards, cancelled warrants, warrant numbers, etc.) specific to the PROJECT. Accounting Rules for Employee Services (FORCE ACCOUNT LABOR) Grantees must follow these accounting practices for employee services:  Maintain time and attendance records as charges are incurred, identifying the employee through a name or other tracking system, and that employee’s actual time spent on the PROJECT.  Time estimates for work performed on the PROJECT are not acceptable.  Time sheets that do not identify the specific employee’s time spent on the PROJECT are not acceptable.  Costs of the salaries and wages must be calculated according to the GRANTEE’S wage and salary scales, and may include benefit costs such as “workers’ compensation.”  Overtime costs may be allowed under the GRANTEE’S established policy, provided that the regular work time was devoted to the same PROJECT. State Audit Grants are subject to audit by DPR. (See page 33, Audit Checklist). All PROJECT records must be retained for five years after final payment was received. The GRANTEE must provide the following when an audit date and time has been confirmed by DPR:  All PROJECT records, including the source documents and cancelled warrants, books, papers, accounts, time sheets, or other records listed in the Audit Checklist or requested by DPR.  An employee having knowledge of the PROJECT and its records to assist DPR’s auditor. 2017-11-07 Agenda Packet Page 77 Administration Guide for the Outdoor Environmental 33 Audit Checklist Education Facilities Program Audit Checklist An audit of the PROJECT may be performed before or following PROJECT COMPLETION. Listed below are some of the items the auditor will examine during the review. The GRANTEE must have these records available in a central location ready for review once an audit date and time has been confirmed. Contact DPR’s Audits Office at (916) 657-0370 for questions about audit requirements. CONTRACTS Summary list of bidders (including individual bid packages) Recommendation by reviewer of bids Awarding by governing body (minutes of the meeting/resolution) Construction contract agreement CONTRACT bonds (bid, performance, payment) CONTRACT change orders Contractor's progress billings Payments to contractor (cancelled checks/warrants, bank statements and EFT receipts, etc.**) Stop Notices (filed by sub-contractors and release if applicable) Liquidated damages (claimed against the contractor) Notice of completion (recorded) FORCE ACCOUNT LABOR* Authorization/work order identifying project Daily time sheets signed by employee and supervisor Hourly rate (salary schedules/payroll register) Fringe benefits (provide breakdown) IN-HOUSE EQUIPMENT1* Authorization/work order Daily time records identifying the project site Hourly rate related backup documents * Estimated time expended on the projects is not acceptable. Actual time records and all supporting documentation must be maintained as charges are incurred and made available for verification at the time of audit. ** Front and back if copied. MINOR CONTRACTS/MATERIALS/SERVICES/ EQUIPMENT RENTALS Purchase orders/Contracts/Service Agreements Invoices Payments (actual cancelled checks/warrants, bank statements and EFT receipts, etc.**) ACQUISITION Appraisal Report Did the owner accompany the appraiser? 10 year history Statement of just compensation (signed by seller) Waiver of just compensation (if purchased below appraisal: signed by seller) Final Escrow Closing Statement Cancelled checks/warrants, bank statements and EFT receipts, etc.** (payment(s) to seller(s)) GRANT deed (vested to the participant) or final order of condemnation Title insurance policy (issued to participant) Relocation documents Income (rental, grazing, sale of improvements, etc.) INTEREST Schedule of interest earned on State funds advanced. Interest on grant ADVANCES is accountable, even if commingled in a pooled fund account and/or interest was never allocated back to the grant fund. AGREEMENT/CONTRACTS Leases, agreements, etc., pertaining to developed/acquired property 2017-11-07 Agenda Packet Page 78 Administration Guide for the Outdoor Environmental 34 Definitions Education Facilities Program DEFINITIONS Capitalized words and terms used in this procedural guide are defined below. ADVANCE – payment made to the GRANTEE for work that will occur in the future or work that has already occurred during the GRANT PERFORMANCE PERIOD and has not been paid for by the GRANTEE. APPLICANT – an entity which does not yet have an ENCUMBERED CONTRACT with DPR. APPLICATION – the Application Form and attachments submitted by an APPLICANT to OGALS to request GRANT funding through a competitive process and to describe the proposed use of the GRANT as required by the “Application Guide for the Outdoor Environmental Education Facilities Grant Program.” APPROPRIATION DATE – when program funding is authorized by the legislature. This date starts the GRANT PERFORMANCE PERIOD and CONTRACT PERFORMANCE PERIOD. AUTHORIZED REPRESENTATIVE – the APPLICANT’S/GRANTEE’S designated position authorized in the Resolution to sign all required GRANT documents. The AUTHORIZED REPRESENTATIVE may designate an alternate by informing OGALS in writing. CEQA – the California Environmental Quality Act as stated in the Public Resources Code §21000 et seq.; Title 14 California Code of Regulations §15000 et seq. CEQA is a law establishing policies and procedures that require entities to identify, disclose to decision makers and the public, and attempt to lessen significant impacts to environmental and historical resources that may occur as a result of the entities’ proposed PROJECT. For more information refer to http://ceres.ca.gov/ceqa/. CONSTRUCTION COSTS – costs incurred when ground-breaking construction activities such as site preparation, grading, or gutting begins, and continuing to the end of the GRANT PERFORMANCE PERIOD. CONTRACT – an agreement between the DPR and the GRANTEE specifying the performance of the GRANT SCOPE within the GRANT PERFORMANCE PERIOD, and other GRANT obligations between the GRANTEE and DPR. CONTRACT PERFORMANCE PERIOD – the twenty or thirty year agreement between the DPR and the GRANTEE specifying the performance of the contractual GRANT obligations between the GRANTEE and DPR. The twenty or thirty year period is shown on the CONTRACT and page 2 of this guide. DEVELOPMENT – the physical improvement of real property including the construction of facilities or structures. DPR – the California Department of Parks and Recreation. ELIGIBLE COSTS – expenses incurred during the GRANT PERFORMANCE PERIOD to complete the GRANT SCOPE approved by OGALS through an ENCUMBERED CONTRACT. 2017-11-07 Agenda Packet Page 79 Administration Guide for the Outdoor Environmental 35 Definitions Education Facilities Program ENCUMBERED – When the CONTRACT is signed by the AUTHORIZED REPRESENTATIVE and DPR. At this point the funds are reserved by the state for the purpose of funding PROJECT related costs. FORCE ACCOUNT LABOR – use of the GRANTEE’S employees working on the GRANT SCOPE. GRANT – funds made available to a GRANTEE for completion of the GRANT SCOPE during the GRANT PERFORMANCE PERIOD. GRANT AWARD ANNOUNCEMENT – a letter issued by OGALS to notify successful APPLICANTS of the intended grant amount at the conclusion of the competitive APPLICATION review process. GRANT COMPLETION PACKET – The documents listed on page 30 that are required in order to request final GRANT payment following PROJECT COMPLETION. GRANTEE – an entity having an ENCUMBERED CONTRACT with DPR. GRANT PERFORMANCE PERIOD – period of time that ELIGIBLE COSTS may be incurred by the GRANTEE and charged to the GRANT, as specified in the ENCUMBERED CONTRACT. GRANT SCOPE – All items listed in the GRANT SCOPE/Cost Estimate Form that must be completed prior to final GRANT payment. NON-CONSTRUCTION ADVANCE – payment by OGALS made to the GRANTEE subject to the 25% cap on the grant amount for planning, design, permits, and other work before construction can begin. The costs have not yet been paid for by the GRANTEE (see ADVANCE). NON-CONSTRUCTION COSTS – costs incurred subject to the 25% cap on the grant amount during the planning, design, and permit phase of the PROJECT before construction can begin. NON-CONSTRUCTION REIMBURSEMENT – payment by OGALS made to the GRANTEE subject to the 25% cap on the grant amount for planning, design, permits, and other work before construction can begin. The costs have been paid for by the GRANTEE. (See definition of REIMBURSEMENT). OGALS – DPR’S Office of Grants and Local Services. PROJECT – the GRANT SCOPE items. PROJECT COMPLETION – when the GRANT SCOPE items are complete and the facilities are open and useable by the public. PROJECT OFFICER – an OGALS employee who acts as a GRANT administration contact for APPLICANTS and GRANTEES. REIMBURSEMENT – GRANT payment made to the GRANTEE after the GRANTEE incurred costs by making a payment to a contractor or vendor. SCOPE CHANGE – Removing, modifying or adding a GRANT SCOPE item, changing the PROJECT utility; also changes to the PROJECT location. 2017-11-07 Agenda Packet Page 80 City of Chula Vista Staff Report File#:17-0431, Item#: 3. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING YEAR FOUR OF A SUB-AWARD AGREEMENT WITH COMMUNITY HEALTH IMPROVEMENT PARTNERS FOR THE RACIAL AND ETHNIC APPROACHES TO COMMUNITY HEALTH PROJECT, AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT AND THE CITY MANAGER TO EXECUTE ALL OTHER DOCUMENTS NECESSARY TO IMPLEMENT THE AGREEMENT, AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council adopt the resolution. SUMMARY On June 2, 2015, October 13, 2015 and October 4, 2016, City Council approved the year one, year two, and year three agreement, respectively, between the City and Community Health Improvement Partners for funding, through the Centers for Disease Control and Prevention’s Racial and Ethnic Approaches to Community Health (REACH) program, to promote healthy eating and physical activity to Latinos living in Chula Vista’s 91910 and 91911 zip codes. This action will approve year four funding for staff time to further develop policies and plans supporting healthy food access. 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 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. BOARD/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The non-profit Community Health Improvement Partners (CHIP) received funding, through the Centers for Disease Control and Prevention’s Racial and Ethnic Approaches to Community Health (REACH) program, to address health disparities in Chula Vista in 2015. Specifically, the project has been working to promote healthy eating and physical activity for Latinos living in the City’s 91910 and 91911 zip codes. While the initial grant period was for three years, the Centers for Disease Control has awarded an City of Chula Vista Printed on 11/2/2017Page 1 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 81 File#:17-0431, Item#: 3. While the initial grant period was for three years, the Centers for Disease Control has awarded an unexpected fourth year to continue the REACH project. A total of $30,007 in year four (October 1, 2017 - September 30, 2018) funding has been awarded, of which $30,005 was appropriated as part of the regular fiscal year 2017-18 budget development process ($2 to be appropriated). It is expected that this will be the final year of grant funding. In addition to the year four funding, the City has identified unspent year three (October 1, 2016 - September 30, 2017) grant funds totaling $11,185. Staff recommends appropriating these monies from the available grant fund balance for expenditure in fiscal year 2017-18, for a total appropriation request of $11,187. The project will provide the City with technical assistance to develop and review policies to support healthy food access. In addition to the City of Chula Vista, other project partners have included the UCSD School of Medicine’s Center for Community Health, Scripps Mercy Chula Vista, Sweetwater High School District, Chula Vista Elementary School District, the YMCA and 2-1-1 San Diego. 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 REACH project directly supports the Strategic Plan’s Healthy Community component by promoting physical activity and healthy eating. CURRENT YEAR FISCAL IMPACT The fiscal year 2018 budget includes $30,005 in REACH funding. Actual REACH funds awarded total $30,007, necessitating a minor appropriation of $2.00. In addition to the year four funding, unexpended prior year grant funds totaling $11,185 have been identified and are recommended for appropriation in the current year, resulting in a total appropriation request of $11,187. Table 1 below summarizes the funds available and appropriations requested. Funds Available/ Awarded Existing Appropriations Proposed Appropriations Year 3 (Prior Year Fund Balance)$11,185 $0 $11,185 Year 4 (New Grant Funds)$30,007 $30,005 $2 Total $41,192 $30,005 $11,187 Table 1 The proposed appropriation will be fully offset by grant funds. The funds will be used to support City staff time associated with healthy eating-related policy development. City of Chula Vista Printed on 11/2/2017Page 2 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 82 File#:17-0431, Item#: 3. ONGOING FISCAL IMPACT The proposed project would be a one-time activity. There are no ongoing fiscal impacts. ATTACHMENTS 1. REACH Sub-Award Agreement (Year 4) Staff Contact: Stacey Kurz, Development Services Department City of Chula Vista Printed on 11/2/2017Page 3 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 83 SUBAWARD AGREEMENT Community Health Improvement Partners: Racial and Ethnic Approaches to Community Health Prime Institution/Organization ("CHIP") Name: Community Health Improvement Partners Email Address:cmoder@sdchip.org Subaward Institution/Organization ("SUBRECIPIENT") Name: City of Chula Vista Email Address: SKurz@chulavistaca.gov CHIP PI: Cheryl Moder Subrecipient PI: Stacey Kurz Prime Award No.: 1 U58 DP005834 Sub-award No.: 5834-122-04 Awarding Agency: Centers for Disease Control CFDA No.: 93.738 Subaward Period of Performance: 9/30/2017 –9/29/2018 Amount Funded this Action: $ $30,007 Total funded to date: $0 Project Title: Racial and Ethnic Approaches to Community Health By signing below, Subrecipient accepts the terms and conditions and makes the certifications and assurances shown in: Attachments A, B, C, D and E. By an Authorized Official of CHIP: Name (printed) Ed Quinlan _______________________ Title: Interim President and CEO Date: By an Authorized Official of SUBRECIPIENT: Name (printed) __Mary Casillas Salas_____________ Title: Mayor Date: 2017-11-07 Agenda Packet Page 84 2017-11-07 Agenda Packet Page 85 3 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A AttachmentA CHIP CONTRACT NUMBER 5834-122-04 AGREEMENT WITH THE CITY OF CHULA VISTAFOR RACIAL AND ETHNIC APPROACHES TO COMMUNITY HEALTH (REACH) 2017 - 2018 FUNDING RESTRICTIONS AND LIMITATIONS 1.Funding Opportunity Announcement (FOA) Restrictions: 1.1.Awardees may not use funds for research. Awardees may not use funds for clinical care. 1.2.Awardees may use funds only for reasonable program purposes, including personnel, travel, supplies, and services. 1.3.Generally, awardees may not use funds to purchase furniture or equipment. Any such proposed spending must be clearly identified in the budget. 1.4.Reimbursement of pre-award costs is not allowed. 1.5.Other than for normal and recognized executive-legislative relationships, no funds may be used for: 1.5.1.Publicity or propaganda purposes, for the preparation, distribution, or use of any material designed to support or defeat the enactment of legislation before any legislative body. 1.5.2.The salary or expensesof any grant or contract recipient, or agent acting for such recipient, related to any activity designed to influence the enactment of legislation, appropriations, regulation, administrative action, or Executive order proposed or pending before any legislative body. 1.5.3.See Additional Requirement CAR 12 for detailed guidance on this prohibition and additional guidance on lobbying for CDC awardees 2.The direct and primary recipient in a cooperative agreement program must perform a substantial role in carrying out project outcomes and not merely serve as a conduit for an award to another party or provider who is ineligible. 3.Cost Limitations as Stated in the Consolidated Appropriations Act, 2014 3.1.Cap on Salaries (Div. H, Title II, Sec. 203): None of the funds appropriated in this title shall be used to pay the salary of an individual, through a grant or other extramural mechanism, at a rate in excess of Executive Level II. 3.2.Note: The salary rate limitation does not restrict the salary that an organization may pay an individual working under an HHS contract or order; it merely limits the portion of that salary that may be paid with Federal funds. 3.3.Gun Control Prohibition (Div. H, Title II, Sec. 217): None of the funds made available in this title may be used, in whole or in part, to advocate or promote gun control. 3.4.Proper Use of Appropriations - Publicity and Propaganda (LOBBYING) FY2012 (Div. H, Title V, Sec. 503): 3.5.503(a): No part of any appropriation contained in this Act or transferred pursuant to section 4002 of Public Law 111-148 shall be used, other than for normal and recognized executive- legislative relationships, for publicity or propaganda purposes, for the preparation, distribution, or use of any kit, pamphlet, booklet, publication, electronic communication , radio, television, or video presentation designed to support or defeat the 2017-11-07 Agenda Packet Page 86 4 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A enactment of legislation before the Congress or any State or local legislature or legislative body, except in presentation of the Congress or any State or local legislature itself, or designed to support or defeat any proposed or pending regulation, administrative action, or order issued by the executive branch of any State or local government itself. 3.6.503 (b): No part of any appropriation contained in this Act or transferred pursuant to section 4002 of Public Law 111-148 shall be used to pay the salary or expenses of any grant or contract recipient, or agent acting for such recipient, related to any activity designed to influence the enactment of legislation, appropriations , regulation, administrative action, or Executive order proposed or pending before the Congress or any State government, State legislature or local legislature or legislative body, other than normal and recognized executive legislative relationships or participation by an agency or officer of an State, local or .tribal government in policymaking and administrative processes within the executive branch of that government. 3.7.503(c): The prohibitions in subsections (a) and (b) shall include any activity to advocate or promote any proposed, pending or future Federal, State or local tax increase, or any proposed, pending, or future requirement or restriction on any legal consumer product, including its sale of marketing, including but not limited to the advocacy or promotion of gun control. 3.8.For additional information, see Additional Requirement 12 at http://www.cdc.gov/od/pgo/funding/grants/additional_req.shtm and Anti Lobbying Restrictions for CDC Grantees at http://www.cdc.gov/od/pgo/funding/grants/Anti- Lobbying_Restrictions_for_CDC_Grantees_July_2012.pdf. 4.Needle Exchange (Div. H, Title V, Sec. 522): 4.1.Notwithstanding any other provision of this Act, no funds appropriated in this Act shall be used to carry out any program of distributing sterile needles or syringes for the hypodermic injection of any illegal drug. 5.Restricts dealings with corporations with recent felonies (Div. E, Title VI, Sec. 623): 5.1.None of the funds made available by this Act may be used to enter into a contract, memorandum of understanding, or cooperative agreement with, make a grant to, or provide a loan or loan guarantee to any corporation that was convicted (or had an officer or agent of such corporation acting on behalf of the corporation convicted) of a felony criminal violation under any Federal or State law within the preceding 24 months, where the awarding agency is aware of the conviction, unless the agency has considered suspension or debarment of the corporation, or such officer or agent, and made a determination that this further action is not necessary to protect the interests of the Government. 6.Restricts dealings with corporations with unpaid federal tax liability (Div. E, Title VI, Sec. 622, Div. H, Title V, Sec. 518): 6.1.None of the funds made available by this Act may be used to enter into a contract, memorandum of understanding, or cooperative agreement with, make a grant to, or provide a loan or loan guarantee to, any corporation that any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability, where the 2017-11-07 Agenda Packet Page 87 5 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A awarding agency is aware of the unpaid tax liability, unless the agency has considered suspension or debarment of the corporation and made a determination that this further action is not necessary to protect the interests of the Government. 7. Blocking access to pornography (Div. H, Title V, Sec. 528): 7.1.None of the funds made available in this Act may be used to maintain or establish a computer network unless such network blocks the viewing, downloading, and exchanging of pornography; 7.2.Nothing in subsection (7.1) shall limit the use of funds necessary for any Federal, State, tribal, or local law enforcement agency or any other entity carrying out criminal investigations, prosecution, or adjudication activities. 8.Rent or Space Costs: 8.1.Grantees are responsible for ensuring that all costs included in this proposal to establish billing or final indirect cost rates are allowable in accordance with the requirements of the Federal award(s) to which they apply, including 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; 2 CFR Part 225, Cost Principles for State, Local, and Indian Tribal Governments (OMB Circular A- 87); and 2 CFR Part 230, Cost Principles for Non-Profit Organizations (OMB Circular A-122). 8.2.The grantee also has a responsibility to ensure sub-recipients expend funds in compliance with applicable federal laws and regulations. 8.3.Furthermore, it is the responsibility of the grantee to ensure rent is a legitimate direct cost line item, which the grantee has supported in current and/or prior projects and these same costs have been treated as indirect costs that have not been claimed as direct costs. If rent is claimed as direct cost, the grantee must provide a narrative justification, which describes their prescribed policy to include the effective date to the assigned Grants Management Specialist (GMS) identified in the CDC Contacts for this award. 9.Trafficking In Persons: This award is subject to the requirements of the Trafficking Victims Protection Act of 2000, as amended (22 U.S.C. Part 7104(g)). For the full text of the award terms and conditions, see, http://www.cdc.gov/od/pgo/funding/grants/Award_Term_and_Condition_for_Trafficking_in_P ersons.shtm. 10.Cancel Year: 31 U.S.C. Part 1552(a) Procedure for Appropriation Accounts Available for Definite Periods states the following, On September 30th of the 5th fiscal year after the period of availability for obligation of a fixed appropriation account ends, the account shall be closed and any remaining balances (whether obligated or unobligated) in the account shall be canceled and thereafter shall not be available for obligation or expenditure for any purpose. An example is provided below: 10.1.Fiscal Year (FY) 2014 funds will expire September 30, 2019. All FY 2014 funds should be drawn down and reported to Payment Management Services (PMS) prior to September 30, 2019. After this date, corrections or cash requests will not be permitted. 11.Audit Requirement: 11.1.Domestic Organizations (including US-based organizations implementing projects with foreign components): An organization that expends $500,000 or more in a fiscal year in 2017-11-07 Agenda Packet Page 88 6 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A Federal awards shall have a single or program-specific audit conducted for that year in accordance with the provisions of OMB Circular A-133. 11.2.The audit period is an organization's fiscal year. The audit must be completed along with a data collection form (SF-SAC), and the reporting package shall be submitted within the earlier of 30 days after receipt of the auditor's report(s), or nine (9) months after the end of the audit period. The audit report must be sent to: 11.2.1.Federal Audit Clearing House Internet Data Entry System Electronic Submission: https://harvester.census.gov/facides/(S(4rzyyznvfv025q20bfizszf2))/account/login.a spx. AND Procurement & Grants Office, Risk Management & Compliance Activity_ Electronic Copy to: PGO.Audit.Resolution@cdc.gov. 11.2.2.After receipt of the audit report, the National External Audit Review Center will provide audit resolution instructions. CDC will resolve findings by issuing Final Determination Letters. 12.Audit requirements for Subrecipients: 12.1.The grantee must ensure that the subrecipients receiving CDC funds also meet these requirements. 12.2.The grantee must also ensure to take appropriate corrective action within six months after receipt of the subrecipient audit report in instances of non-compliance with applicable Federal law and regulations (2 CFR 200 Subpart F and HHS Grants Policy Statement). 12.3.The grantee may consider whether subrecipient audits necessitate adjustment of the grantee's own accounting records. 12.4.If a subrecipient is not required to have a program-specific audit, the grantee is still required to perform adequate monitoring of subrecipient activities. 12.5.The grantee shall require each subrecipient to permit the independent auditor access to the subrecipient's records and financial statements. The grantee must include this requirement in all subrecipient contracts. 12.6.Note: The standards set forth in 2 CFR Part 200 Subpart F will apply to audits of fiscal years beginning on or after December 26, 2014. 13.Federal Funding Accountability and Transparency Act (FFATA): 13.1.FFATA applies to new awards that have been made and noncompeting continuations that were issued as new awards on or after October 1, 2010. 13.2.In accordance with 2 CFR Chapter 1, Part 170 Reporting Sub-Award And Executive Compensation Information, Prime Awardees awarded a federal grant are required to file a FFATA sub-award report by the end of the month following the month in which the prime awardee awards any sub-grant equal to or greater than $25,000. 13.3.Pursuant to A-133 (see Section_.205(h) and Section_.205(i)), a grant sub-award includes the provision of any commodities (food and non-food) to the sub-recipient where the sub- recipient is required to abide by terms and conditions regarding the use or future administration of those goods. If the sub-awardee merely consumes or utilizes the goods, the commodities are not in and of themselves considered sub-awards. 13.4.2 CFR Part 170: http://www.ecfr.gov/cgi-bin/text- idx?SI0=62c0c614004c0ada23cb6552e0adcdc6&node=-2:1.1.1.1.4&rgn=div5#_top 13.5.FFATA: www.fsrs.gov. 14.Reporting of First-Tier Sub-awards 2017-11-07 Agenda Packet Page 89 7 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A 14.1.Applicability : Unless you are exempt (gross income from all sources reported in last tax return is under $300,000), you must report each action that obligates $25,000 or more in Federal funds that does not include Recovery funds (as defined in section 1512(a)(2) of the American Recovery and Reinvestment Act of 2009, Pub. L. 111-5) for a sub-award to an entity. 15.Reporting: 15.1.Report each obligating action of this award term to http://www.fsrs .gov. 15.2.For sub- award information, report no later than the end of the month following the month in which the obligation was made. (For example, if the obligation was made on November 7, 2010 , the obligation must be reported by no later than December 31, 2010). You must report the information about each obligating action that the submission instructions posted at http://www.fsrs.gov. 16.Total Compensation of Recipient Executives: 16.1.You must report total compensation for each of your five most highly compensated executives for the preceding completed fiscal year, if: 16.1.1.The total Federal funding authorized to date under this award is $25,000 or more; 16.1.2.In the preceding fiscal year, you received- 16.1.2.1.80 percent or more of your annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR Part 170.320 (and sub- awards); and 16.1.2.2.$25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR Part 170.320 (and sub-awards) ; and 16.1.2.3.The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. Part 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at (http://www.sec.gov/answers/execomp.htm). 16.2.Report executive total compensation as part of your registration profile at http://www.sam.gov. Reports should be made at the end of the month following the month in which this award is made and annually thereafter. 17.Total Compensation of Sub-recipient Executives: 17.1.Unless you are exempt (gross income from all sources reported in last tax return is under $300,000), for each first-tier sub-recipient under this award, you must report the names and total compensation of each of the sub-recipient's five most highly compensated executives for the sub-recipient's preceding completed fiscal year, if: 17.1.1.In the sub-recipient's preceding fiscal year, the sub-recipient received- 17.1.1.1.80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency Act, as defined at 2 CFR Part 170.320 (and sub-awards); and 17.1.1.2.$25,000, 000 or more in annual gross revenues from Federal procurement 2017-11-07 Agenda Packet Page 90 8 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A contracts (and subcontracts), and Federal financial assistance subject to the Transparency Act (and sub-awards); and 17.1.1.3.The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. Part 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at (http://www.sec.gov/answers/execomp.htm). 17.2.You must report sub-recipient executive total compensation to the grantee by the end of the month following the month during which you make the sub-award. For example, if a sub-award is obligated on any date during the month of October of a given year (i.e., between October 1st and 31st), you must report any required compensation information of the sub-recipient by November 30th of that year. 18.Definitions: 18.1.Entity means all of the following, as defined in 2 CFR Part 25 (Appendix A, Paragraph(C)(3)): 18.1.1.Governmental organization, which is a State, local government, or Indian tribe; 18.1.2.Foreign public entity; 18.1.3.Domestic or foreign non-profit organization ; 18.1.4.Domestic or foreign for-profit organization; 18.1.5.Federal agency, but only as a sub-recipient under an award or sub-award to a non- Federal entity. 18.2.Executive means officers, managing partners, or any other employees in management positions. 18.3.Sub-award: a legal instrument to provide support to an eligible sub-recipient for the performance of any portion of the substantive project or program for which the grantee received this award. The term does not include the grantees procurement of property and services needed to carry out the project or program (for further explanation, see Sec. _.210 of the attachment to OMB Circular A-133, Audits of States, Local Governments, and Non- Profit Organizations). A sub-award may be provided through any legal agreement, including an agreement that the grantee or a sub-recipient considers a contract. 18.4.Sub-recipient means an entity that receives a sub-award from you (the grantee) under this award; and is accountable to the grantee for the use of the Federal funds provided by the sub-award. 18.5.Total compensation means the cash and non-cash dollar value earned by the executive during the grantee's or sub-recipient's preceding fiscal year and includes the following (for more information see 17 CFR Part 229.402(c)(2)): 18.5.1.Salary and bonus. 18.5.2.Awards of stock, stock options, and stock appreciation rights. Use the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in accordance with the Statement of Financial Accounting Standards No. 123 (Revised.2004) (FAS 123R), Shared Based Payments. 18.5.3.Earnings for services under non-equity incentive plans. This does not include group life, health, hospitalization or medical reimbursement plans that do not discriminate in favor of executives, and are available generally to all salaried employees. 18.5.4.Change in pension value. 2017-11-07 Agenda Packet Page 91 9 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A 18.5.4.1.This is the change in present value of defined benefit and actuarial pension plans. 18.5.4.1.1.Above-market earnings on deferred compensation which is not tax- qualified. 18.5.4.1.2.Other compensation, if the aggregate value of all such other compensation (e.g. severance, termination payments, value of life insurance paid on behalf of the employee, perquisites or property) for the executive exceeds $10,000. 19.GENERAL REQUIREMENTS 19.1.Travel Cost: 19.1.1.In accordance with HHS Grants Policy Statement, travel costs are only allowable where such travel will provide direct benefit to the project or program. There must be a direct benefit imparted on behalf of the traveler as it applies to the approved activities of the NoA. To prevent disallowance of cost, the grantee is responsible for ensuring that only allowable travel reimbursements are applied in accordance with their organization's established travel policies and procedures. Grantees approved policies must meet the requirements of 2 CFR Parts 200, 225 and 230 , as applicable and 45 CFR Parts 74 and 92, as applicable. 19.2.Food and Meals: 19.2.1.Costs associated with food or meals are allowable when consistent with OMB Circulars and guidance, HHS Federal regulations, Program Regulations, HHS policies and guidance. In addition, costs must be proposed in accordance with grantee approved policies and a determination of reasonableness has been performed by the grantees. Grantee approved policies must meet the requirements of 2 CFR Parts 200, 225 and 230, as applicable and 45 CFR Parts 74 and 92, as applicable. 19.3.Publications: 19.3.1.Publications, journal articles, etc. produced under a CDC grant support project must bear an acknowledgment and disclaimer, as appropriate, for example: 19.3.1.1.This publication (journal article, etc.) was supported by the Grant or Cooperative Agreement Number, DP005834, funded by the Centers for Disease Control and Prevention. Its contents are solely the responsibility of the authors and do not necessarily represent the official views of the Centers for Disease Control and Prevention or the Department of Health and Human Services. 19.4.Acknowledgment Of Federal Support: 19.4.1.When issuing statements, press releases, requests for proposals, bid solicitations and other documeots describing projects or programs funded in whole or in part with Federal money, all awardees receiving Federal funds, including and not limited to State and local governments and grantees of Federal research grants, shall clearly state: 19.4.1.1.Percentage of the total costs of the program or project which will be financed with Federal money 19.4.1.2.Dollar amount of Federal funds for the project or program, and 19.4.1.3.Percentage and dollar amount of the total costs of the project or program that will be financed by non-governmental sources. 20.Copyright Interests Provision: 2017-11-07 Agenda Packet Page 92 10 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A 20.1.This provision is intended to ensure that the public has access to the results and accomplishments of public health activities funded by CDC. Pursuant to applicable grant regulations and CDC's Public Access Policy, Recipient agrees to submit into the National Institutes of Health (NIH) Manuscript Submission (NIHMS) system an electronic version of the final, peer-reviewed manuscript of any such work developed under this award upon acceptance for publication, to be made publicly available no later than 12 months after the official date of publication. Also at the time of submission, Recipient and/or the Recipient's submitting author must specify the date the final manuscript will be publicly accessible through PubMed Central (PMC). Recipient and/or Recipient's submitting author must also post the manuscript through PMC within twelve (12) months of the publisher's official date of final publication; however the author is strongly encouraged to make the subject manuscript available as soon as possible. The recipient must obtain prior approval from the CDC for any exception to this provision. 20.2.The author's final, peer-reviewed manuscript is defined as the final version accepted for journal publication, and includes all modifications from the publishing peer review process, and all graphics and supplemental material associated with the article. Recipient and its submitting authors working under this award are responsible for ensuring that any publishing or copyright agreements concerning submitted articles reserve adequate right to fully comply with this provision and the license reserved by CDC. Themanuscript will be hosted in both PMC and the CDC Stacks institutional repository system. In progress reports for this award, recipient must identify publications subject to the CDC Public Access Policy by using the applicable NIHMS identification number for up to three (3) months after the publication date and the PubMed Central identification number (PMCID) thereafter. 21.Disclaimer for Conference/Meeting/Seminar Materials: 21.1.Disclaimers for conferences/meetings, etc. and/or publications: If a conference/meeting/seminar is funded by a grant, cooperative agreement, sub-grant and/or a contract the grantee must include the following statement on conference materials, including promotional materials, agenda, and internet sites: 21.1.1.Funding for this conference was made possible (in part) by the Centers for Disease Control and Prevention. The views expressed in written conference materials or publications and by speakers and moderators do not necessarily reflect the official policies of the Department of Health and Human Services, nor does the mention of trade names, commercial practices, or organizations imply endorsement by the U.S. Government. 22.Logo Use for Conference and Other Materials: 22.1.Neither the Department of Health and Human Services (HHS) nor the CDC logo may be displayed if such display would cause confusion as to the funding source or give false appearance of Government endorsement. Use of the HHS name or logo is governed by U.S.C. Part 1320b-10, which prohibits misuse of the HHS name and emblem in written communication. A non-federal entity is unauthorized to use the HHS name or logo governed by U.S.C. Part 1320b-10. The appropriate use of the HHS logo is subject to review and approval of the HHS Office of the Assistant Secretary for Public Affairs (OASPA) . Moreover, the HHS Office of the Inspector General has authority to impose civil monetary penalties for violations (42 CFR Part 1003). Accordingly, neither the HHS nor the CDC logo can be used by the grantee without the express, written consent of either the CDC Project 2017-11-07 Agenda Packet Page 93 11 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A Officer or the CDC Grants Management Officer. It is the responsibility of the grantee to request consent for use of the logo in sufficient detail to ensure a complete depiction and disclosure of all uses of the Government logos. In all cases for utilization of Government logos, the grantee must ensure written consent is received from the Project Officer and/or the Grants Management Officer. 23.Equipment and Products: 23.1.To the greatest extent practicable, all equipment and products purchased with CDC funds should be American-made. CDC defines equipment as tangible non- expendable personal property (including exempt property) charged directly to an award having a useful life of more than one year AND an acquisition cost of $5,000 or more per unit. However, consistent with grantee policy, a lower threshold may be established. Please provide the information to the Grants Management Officer to establish a lower equipment threshold to reflect your organization’s policy. 23.2.The grantee may use its own property management standards and procedures, provided it observes provisions of in applicable grant regulations and OMB circulars. 24.Federal Information Security Management Act (FISMA): 24.1.All information systems, electronic or hard copy, that contain federal data must be protected from unauthorized access. This standard also applies to information associated with CDC grants. Congress and the OMB have instituted laws, policies and directives that govern the creation and implementation of federal information security practices that pertain specifically to grants and contracts. The current regulations are pursuant to the Federal Information Security Management Act (FISMA), Title Ill of the E- Government Act of 2002, PL 107-347. 24.2.FISMA applies to CDC grantees only when grantees collect, store, process, transmit or use information on behalf of HHS or any of its component organizations. In all other cases, FISMA is not applicable to recipients of grants, including cooperative agreements. Under FISMA, the grantee retains the original data and intellectual property, and is responsible for the security of these data, subject to all applicable laws protecting security, privacy, and research. If/When information collected by a grantee is provided to HHS, responsibility for the protection of the HHS copy of the information is transferred to HHS and it becomes the agency's responsibility to protect that information and any derivative copies as required by FISMA. For the full text of the requirements under Federal Information Security Management Act (FISMA), Title III of the E-Government Act of 2002 Pub. L. No. 107-347, please review the following website:http://frwebgate.access.gpo.gov/cgi- bin/getdoc.cgi?dbname=1 07_cong_public_laws&docid=f:publ347.107.pdf. 25.Pilot Program for Enhancement of Contractor Employee Whistleblower Protections: 25.1.Grantees are hereby given notice that the 48 CFR section 3.908, implementing section 828, entitled "Pilot Program for Enhancement of Contractor Employee Whistleblower Protections," of the National Defense Authorization Act (NOAA) for Fiscal Year (FY) 2013 (Pub. L. 112-239, enacted January 2, 2013), applies to this award. 25.2.Federal Acquisition Regulations 25.2.1.As promulgated in the Federal Register, the relevant portions of 48 CFR section 3.908 read as follows (note that use of the term "contract," "contractor," "subcontract," or "subcontractor" for the purpose of this term and condition, 2017-11-07 Agenda Packet Page 94 12 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A should be read as "grant," "grantee," "subgrant," or "subgrantee"): 25.3.3.908 Pilot program for enhancement of contractor employee whistleblower protections. 25.3.1.3.908-1 Scope of section. 25.3.1.1.This section implements 41 U.S.C . 4712. 25.3.1.2.This section does not apply to- 25.3.1.2.1.DoD, NASA, and the Coast Guard; or Any element of the intelligence community, as defined in section 3(4) of the National Security Act of 1947 (50 U.S.C. 3003(4)). This section does not apply to any disclosure made by an employee of a contractor or subcontractor of an element of the intelligence community if such disclosure- 25.3.1.2.1.1. Relates to an activity of an element of the intelligence community; or 25.3.1.2.1.2. Was discovered during contract or subcontract services provided to an element of the intelligence community. 25.3.2.3.908-2 Definitions. 25.3.2.1.As used in this section- 25.3.2.1.1."Abuse of authority" means an arbitrary and capricious exercise of authority that is inconsistent with the mission of the executive agency concerned or the successful performance of a contract of such agency. 25.3.2.1.2."Inspector General" means an Inspector General appointed under the Inspector General Act of 1978 and any Inspector General that receives funding from, or has oversight over contracts awarded for, or on behalf of, the executive agency concerned. 25.3.3.3.908-3 Policy. 25.3.3.1.Contractors and subcontractors are prohibited from discharging, demoting, or otherwise discriminating against an employee as a reprisal for disclosing, to any of the entities listed at paragraph (25.3.1.2.1) of this subsection, information that the employee reasonably believes is evidence of gross mismanagement of a Federal contract, a gross waste of Federal funds, an abuse of authority relating to a Federal contract, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a Federal contract (including the competition for or negotiation of a contract). A reprisal is prohibited even if it is undertaken at the request of an executive branch official, unless the request takes the form of a non- discretionary directive and is within the authority of the executive branch official making the request. 25.4.Entities to whom disclosure may be made. 25.4.1.A Member of Congress or a representative of a committee of Congress. 25.4.2.An Inspector General. 25.4.3.The Government Accountability Office. 25.4.4.A Federal employee responsible for contract oversight or management at the relevant agency. 25.4.5.An authorized official of the Department of Justice or other law enforcement 2017-11-07 Agenda Packet Page 95 13 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A agency. 25.4.6.A court or grand jury. 25.4.7.A management official or other employee of the contractor or subcontractor who has the responsibility to investigate, discover, or address misconduct. 25.5.An employee who initiates or provides evidence of contractor or subcontractor misconduct in any judicial or administrative proceeding relating to waste, fraud, or abuse on a Federal contract shall be deemed to have made a disclosure. 25.6.3.908-9 Contract clause. 25.6.1.Contractor Employee Whistleblower Rights and Requirement to Inform Employees of Whistleblower Rights (Sept. 2013) 25.6.1.1.This contract and employees working on this contract will be subject to the whistleblower rights and remedies in the pilot program on Contractor employee whistleblower protections established at 41 U.S.C. 4712 by section 828 of the National Defense Authorization Act for Fiscal Year 2013 (Pub. L. 112-239) and FAR 3.908 . 25.6.1.2.The Contractor shall inform its employees in writing, in the predominant language of the workforce, of employee whistleblower rights and protections under 41 U.S.C. 4712, as described in section 3.908 of the Federal Acquisition Regulation 25.6.1.3.The Contractor shall insert the substance of this clause, including this paragraph, in all subcontracts over the simplified acquisition threshold. 26.Additional Requirements 26.1.Funding for this Contract has been financed in part by Prevention and Public Health Funding. All contractors, including both prime and subcontractors, are subject to audit by appropriate federal entities. CHIP has the right to cancel, terminate, or suspend the Contract if any contractor or subcontractor fails to comply with the reporting and operational requirements contained herein. 26.2.Contractor shall comply with all provisions and requirements applicable to contracts funded in whole or in part by Prevention and Public Health Funding as currently exist as of the effective date of this Contract and as may be amended in the future, including, without limitation, Pub. L. 111-5, Div. A, Title XVI, § 1605 ("Buy American"), Pub. L. 111-5, Div. A, Title XV, § 1515 ("Access of Offices of lnspector General"), Pub. L. 111-5, Div. A, Title IX, § 902 ("Access of Government Accountability Office"), and Pub. L. 111-5, Div. A, Title XV, § 1553 ("Whistleblower Protections"), and any related regulations or guidance, as applicable. 26.3.FALSE CLAIMS ACT: Contractor agrees that it shall promptly notify CHIP and shall refer to an appropriate federal inspector general any credible evidence that a principal, employee, agent, subcontractor or other person has committed a false claim under the False Claims Act or has committed a criminal or civil violation of laws pertaining to fraud, conflict of interest, bribery, gratuity, or similar misconduct involving Federal funds. 26.4.DEPARTMENT OF HEALTH AND HUMAN SERVICES REGULATIONS: Contractor shall comply with the following, which are incorporated into this Contract by reference: 26.4.1.Executive Order 11246 of September 24, 1965, entitled "Equal Employment Opportunity," as amended by Executive Order 11375 of October 13, 1967, and as supplemented in Department of Labor Regulations (41 CFR chapter 60) 26.4.2.Contractor shall provide access to CHIP, HHS, the Comptroller General of the United States, or any of their duly authorized representatives to any books, documents, 2017-11-07 Agenda Packet Page 96 14 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A papers, and records of the contractor which are directly pertinent to that specific contract for the purpose of making audit, examination, excerpts, and transcriptions. 26.4.3.Contractor shall retain all required records for three years after CHIP makes final payments and all other pending matters are closed. 26.4.4.Contractor shall comply with all applicable provisions of 45 CFR Part 74 OMB Circular A-110 relocated 2 CFR Part 215 (http://www.whitehouse.gov/sites/default/files/omb/assets/omb/circulars/a110/2 cfr215-0.pdf) and with all clauses required by Federal statute and executive orders and their implementing regulations, as applicable. 26.4.5.Contractor shall comply with Executive Order 13513. Contractor and its subcontractors are prohibited both from texting while driving a Government owned vehicle and/or using Government furnished electronic equipment while driving any vehicle. Texting means reading from or entering data into any handheld or other electronic device, including SMS texting, e- mailing, instant messaging, obtaining navigational information, or engaging in any other form of electronic data retrieval or electronic data communication. Driving means operating a motor vehicle on an active roadway with the motor running, including while temporarily stationary due to traffic, a traffic light, stop sign or otherwise. Driving does not include operating a motor vehicle with or without the motor running when one has pulled over to the side of, or off, an active roadway and has halted in a location where one can safely remain stationary. Contractor is responsible for ensuring that its subcontractors are aware of this prohibition and adhere to this prohibition. The requirement may be accessed at:http://www.cdc.gov/od/pgo/funding/grants/additional_req.shtm. 27.CHIP Prime Terms and Conditions 27.1.Budget and Invoices 27.1.1.Compensation: As defined in the scope of work, the Contractor’s compensation for Services under this Agreement is as follows: 27.1.1.1.CHIP agrees to pay the Subrecipient a sum not to exceed thirty thousand dollars ($30,007) for the project performance period of September 29, 2017 to September 30 th, 2018. 27.1.1.2.CHIP shall reimburse Subrecipient not more often than monthly for allowable costs. 27.1.1.3.All invoices shall be submitted using a standard invoice provided by CHIP, which meets the requirements of OMB Circular A-21. At a minimum, invoices shall include itemized current and cumulative costs, a subaward number, an indication the invoice is for a subaward, detailed expenses, and a signed certification as to truth and accuracy of invoice. 27.1.1.4.Subrecipient shall submit an invoice for services within 5 working days of the close of the month. Payment by CHIP shall be made within 45 business days of CHIP’s receipt of the invoice for services. 27.1.1.5.There shall be no equipment purchased on this project by Subrecipient. 27.1.1.6.Allowable costs are only those indicated in Subrecipient budget (Attachment E). No additional costs will be allowed. 27.1.1.7.No-cost extensions are not allowable for this contract. 27.1.1.8.All payments shall be considered provisional and subject to adjustment within the total estimated cost in the event such adjustment is necessary as a result of an adverse audit finding against the Subrecipient. 27.1.1.9.A final statement of cumulative costs incurred marked “FINAL,” must be submitted to CHIP’s Financial Contact NOT LATER THAN thirty (30) days after subaward end date. 2017-11-07 Agenda Packet Page 97 15 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A 27.1.1.10.Invoices shall be directed to: Community Health Improvement Partners Attn: Stan Miller 5095 Murphy Canyon Road, Suite #105 San Diego, CA 92123 27.2.In its performance of subaward work, Subrecipient shall be an independent entity and not an employee or agent of CHIP. 27.3.Copyrights: CHIP grants subrecipient an irrevocable, royalty-free, non-transferable, non- exclusive right and license to use, reproduce, make derivative works, display, and perform publicly any copyrights or copyrighted material (including any computer software and its documentation and/or databases) first developed and delivered under this Subaward Agreement solely for the purpose of and only to the extent required to meet subrecipient’s obligations to CHIP under its Prime Award. 27.4.Data Rights: CHIP grants to subrecipient the right to use data created in the performance of this Subaward Agreement solely for the purpose of and only to the extent required to meet subrecipient’s obligations to CHIP under its Prime Award. 27.5.Each party shall be responsible for its negligent acts or omissions and the negligent acts or omissions of its employees, officers, or directors, to the extent allowed by law. 27.6.Either party may terminate this subaward with thirty (30) days’ written notice to the other party’s Administrative Contact, as shown in Attachment C. 27.7.The Subaward is subject to the terms and conditions of the Prime Award and other special terms and conditions, as identified as part of Attachment A. 27.8.Matters concerning the request or negotiation of any changes in the terms, conditions, or amounts cited in this subaward, and any changes requiring prior approval, should be directed to the appropriate party's Administrative Contact, as shown in Attachment C. Any such changes made to this subaward agreement require the written approval of each party's Authorized Official, as shown in Attachment C. 28.Subrecipient Status It is the express intention of the parties that the Subrecipient is an independent contractor and not any employee, agent, joint venturer or partner of CHIP. Nothing in this Agreement shall be interpreted or construed as creating or establishing the relationship of employer and employee between CHIP and Subrecipient or any employee or agent of Subrecipient. Both parties acknowledge that Subrecipient is not an employee of CHIP, or any of its related entities, for state or federal tax purposes. Subrecipient shall retain the right to perform services for others during the term of this Agreement. 29.Confidential and Proprietary Information and Materials 29.1.During and after the term of this Agreement, Subrecipient agrees to (i) maintain as strictly confidential, and (ii) not to use for the benefit of Subrecipient or any third party, any information obtained from CHIP or developed in the course of Subrecipient’s Services under this Agreement, which information is of a confidential, private and/or proprietary nature and was not previously known to Subrecipient or publicly available prior to disclosure of such information to Subrecipient by CHIP, or prior to development of such information under this Agreement (“Confidential Information”). Such information includes, but is not limited to, specific data and policies and procedures. This obligation will cease only when such information becomes publicly available through publication by CHIP or 2017-11-07 Agenda Packet Page 98 16 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A rightful publication by others. 29.2.Upon the termination of this Agreement, Subrecipient agrees to transfer and return to CHIP any materials containing confidential and proprietary information thereof, including all copies, in Subrecipient’s possession, whether prepared by Contractor or others. 29.3.If Subrecipient utilizes subcontractors or employees, Subrecipient will assure that each subcontractor or employee maintains Confidential Information obtained from CHIP or developed in the course of Subrecipient’s Services under this Agreement, as set forth above. 30.Cooperation by CHIP 30.1.CHIP agrees to comply with all reasonable request of Subrecipient and provide access to all documents reasonably necessary to the performance of Subrecipient’s duties under this Agreement. 31.Waiver of Benefits 31.1.Subrecipient agrees and certifies that he/she understands that as a contractor he/she is not entitled to participate in any benefit plans, programs or policies maintained by CHIP for the benefit of its employees, whether currently in effect or adopted in the future (the “CHIP Plans”). If Subrecipient is determined by a court of competent jurisdiction or any state or federal agency to be a common-law employee of CHIP for federal or state employment tax purposes or for any other purposes under any applicable local, state or federal law, Subrecipientalso agrees and certifies that: 31.1.1.he/she may have a right to participate in the CHIP Plans, including participation retroactive to the date such Subrecipient is determined to have been a common- law employee, and has been provided with copies of the summary plan descriptions for those plans; 31.1.2.notwithstanding such right to participate in the CHIP Plans, Subrecipient specifically and voluntarily waives, in connection with his/her acceptance of this Agreement, the right to participate in the CHIP Plans on an irrevocable basis; 31.1.3.he/she understands that as a result of this waiver, Subrecipient has irrevocably waived his/her rights to participate in the CHIP Plans for all periods of service with CHIP and understands that by giving up such rights of participation in the CHIP Plans, he/she has given up all rights to receive any benefit under each such CHIP Plan; 31.1.4.he/she hereby releases CHIP, its affiliated entities, officers, directors, employees, trustees and agents from any and all claims, charges, demands, rights, liabilities and causes of action with respect to, or arising out of this waiver of Subrecipient’s rights to participate in the CHIP Plans and understands that this release includes, but is not limited to, the Employee Retirement Income Security Act, the Internal Revenue Code, any local, state or federal tax or any other local, state, or federal laws; and 31.1.5.he/she acknowledges that CHIP has advised Subrecipient to consult with his/her private attorney prior to signing this Agreement and he/she has had ample opportunity to do so, and further acknowledges that he/she has read and understands this waiver and that his/her agreement to this release is truly voluntary and without duress. 32.Liability/Indemnity 2017-11-07 Agenda Packet Page 99 17 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A 32.1.Subrecipient shall indemnify and hold CHIP harmless against any and all losses, damages, costs, expenses or attorney’s fees resulting from or in any way arising out of a breach of any warranty, covenant or agreement by Subrecipient under this Agreement. Subrecipient will further indemnify and hold CHIP harmless against any and all losses, damages, costs, expenses or attorney’s fees resulting from Subrecipient’s Services undertaken pursuant to this Agreement. 32.2.Subrecipient further agrees to indemnify and hold CHIP harmless from any and all damages, including public liability or property damage or any bodily injury or damage to the third-parties’ property arising out of the operation of any motor vehicle used or driven by Subrecipient in connection with work under this Agreement. Subrecipient further agrees to carry public liability and property damage insurance on any vehicle used in connection with the provision of Services under this Agreement, with limits sufficient to completely cover any damages claimed, with CHIP named as additional insured. Subrecipient agrees to furnish CHIP with proof of such required insurance coverage by means of a Certificate of insurance, to be maintained on a current basis in the amount of $1,000,000. 33.Subrecipient’s Employees 33.1.Subrecipient shall furnish at its own discretion, selection, and expense, any labor required incidental to the performance of Services involved in the performance of this Agreement. 33.2.Subrecipient shall be solely responsible for the direction and control of the employees, agents, and/or servants of Subrecipient, if any, performing labor pursuant to this agreement, including the selection, hiring, firing, supervision, assignment and direction, the setting of wages, hours, and working conditions, and the adjustment of their grievances. Subrecipientshall determine the method, means and manner of the performance of the work of its employees, agents, and/or servants, if any, in their performance of this Agreement. Subrecipient agrees to indemnify CHIP from any and all claims brought by any individual selected by Subrecipient to perform services against CHIP, including attorney’s fees and costs of defense that may arise from, relate to, or result in any manner from services performed pursuant to this section. 33.3.Subrecipient assumes full and sole responsibility for the payment of all wages, benefits and expenses of its employees, if any, and for all state and federal tax withholdings, unemployment insurance, social security taxes, and workers’ compensation insurance coverage as to all persons employed by Subrecipient in the performance of services under this Agreement, and Subrecipient shall be responsible for meeting and fulfilling the requirements of all statutes and regulations now or hereafter prescribed by legally constituted authority with respect thereto. CHIP shall not be responsible for the wages, benefits or expenses of Subrecipient’s employees, agents and/or servants, nor for the income tax withholding, social security, workers’ compensation insurance, unemployment, or other payroll taxes of the Subrecipient’s employees, agents and/or servants. Subrecipient shall indemnify, save and hold harmless CHIP from any and all liability CHIP may incur because of Subrecipient’s failure to comply with this section, a contract or any common law, statute, or regulation relating to employment discrimination, retaliation, harassment or any employment related action. 33.4.If Subrecipient elects to hire individuals to perform services related to this Agreement, Subrecipient shall provide CHIP with evidence of current Workers’ Compensation insurance coverage for such employees. 33.5.CHIP shall neither have nor exercise disciplinary authority or control over Subrecipient’s employees, agents and/or servants, shall have no authority to supervise or direct Subrecipient’s employees, agents and/or servants in the performance of their work for Subrecipient, and shall have no authority or right to select, approve, hire, or discipline any of Subrecipient’s employees, agents and/or servants. However, Subrecipient shall ensure that its employees, agents and/or servants engaged in the performance of 2017-11-07 Agenda Packet Page 100 18 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A services for CHIP all have the experience, competence and skill necessary to perform the Services in a professional manner. 33.6.CHIP is not authorized to withhold state or federal income taxes, social security taxes, unemployment insurance taxes, or any other local, state or federal tax on behalf of Subrecipient or Subrecipient’s employees, agents and/or servants. 33.7.All pay, benefits, and working conditions of Subrecipient’s employees, agents and/or servants are a matter of agreement solely between Subrecipient and its employees, agents and/or servants. Subrecipient and Subrecipient’s employees, agents and/or servants shall receive no vacation or holiday pay from CHIP and they shall not participate in any welfare plans or other CHIP plans or benefits enjoyed by CHIP employees. 33.8.CHIP shall have no obligation or responsibility to Subrecipientor Subrecipient’s employees, agents and/or servants on any fine, cost or expense incurred by Subrecipient or any of his/her employees, agents and/or servants by reason of Subrecipient’s violation of any law, rule, statute, ordinance or regulation of any and all governmental authority or authorities. 33.9.Subrecipient shall not induce nor attempt to induce or solicit any CHIP employee or independent contractor to terminate his/her relationship with CHIP in order to work for the Subrecipient or any entity with which the Subrecipient is affiliated during the term of this Agreement. 34.Miscellaneous 34.1.No Assignment: This Agreement may not be subcontracted or assigned by Subrecipient without the prior written consent of CHIP. 34.2.Governing Law and Venue: This Agreement shall be construed and enforced in accordance with the laws of the State of California. All disputes arising out of this Agreement shall be filed in Sacramento County Superior Court, which shall have sole and exclusive jurisdiction with respect to the enforcement or interpretation of the Agreement. Each party consents to the jurisdiction of Sacramento County Superior Court. 34.3.Severability: The invalidity or un-enforceability of one or more provisions of this Agreement shall not affect the validity or enforceability of any of the other provisions hereof and this Agreement shall be construed in all respects as if such invalid or un-enforceable provisions were omitted. 34.4.Notices: Any notice required to be made or given to either party hereto shall be made by personal delivery, telegram, telex, fax, mailgram, certified or registered mail return receipt requested, postage prepaid, and addressed to such party at its address set forth below or to such other address as such party shall designate by written notice. COMMUNITY HEALTH IMPROVEMENT PARTNERS 5095 Murphy Canyon Drive, Suite 105 San Diego, CA 92123 Attn: Ed Quinlan, Interim President & CEO COMMUNITY HEALTH IMPROVEMENT PARTNERS Contract Administrator 5095 Murphy Canyon Drive, Suite 105 San Diego, CA 92123 Attn: Stan Miller CITY OF CHULA VISTA 276 Fourth Avenue Chula Vista, CA 91910 Attn: Gary Halbert, City Manager 2017-11-07 Agenda Packet Page 101 19 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A CITY OF CHULA VISTA Contract Administrator 276 Fourth Avenue Chula Vista, CA 91910 Attn: Stacey Kurz 34.5.Entirety: This Agreement sets forth the full and complete understanding of the parties and its provisions shall not be modified, or waived, in whole or in part, except by a written amendment signed by Subrecipient and CHIP. This Agreement supersedes any and all agreements, either oral or written, between the parties with respect to the rendering of services by Subrecipient for CHIP and contains all the covenants and agreements between the parties with respect to the rendering of such services in any manner whatsoever. Each party to this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, that are not embodied herein, and that no other agreement, statement, or promise not contained in this agreement shall be valid or binding. 35.ENFORCEABILITY: 35.1.Subrecipient agrees that if it fails to comply with all applicable federal requirements governing the use of Prevention and Public Health Funding funds, CHIP may withhold or suspend, in whole or in part, funds awarded under the program, or recover misspent funds following an audit. This provision is in addition to all other remedies available to CHIP under all applicable state and federal laws. 35.2.Subrecipient shall notify CHIP’s Authorized Representative within 15 days if any answers provided with this agreement change or if a mistake in completing this agreement is discovered. 36.Debarment, Suspension, and Other Responsibility Matters 36.1.As a subrecipient of federal funds under this Agreement, Subrecipient certifies that it, its principals, its employees and its subcontractors: 36.1.1.Are not presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from covered transactions by any Federal Department or agency; 36.1.2.Have not within a 3-year period preceding this Agreement been convicted of or had a civil or administrative judgment rendered against them for the commission of fraud or a criminal offense or civil action in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction; violation of Federal or State anti-trust statutes or commission of embezzlement, theft, forgery, bribery, falsification, or destruction of records, making false statements, receiving stolen property; physical, financial or sexual abuse or misconduct with a patient or client, or medical negligence or malpractice; 36.1.3.Are not presently indicted or otherwise criminally, civilly or administratively charged by a government entity (Federal, State, or local) with commission of any of the offenses enumerated in the paragraph above; and 36.1.4.Have not within a 3-year period preceding this agreement had one or more public transaction (Federal, State, or local) terminated for cause or default. 37.OMB Circular A-133/Audit Assurance 37.1.Subrecipient assures CHIP that it complies with A-133 as applicable, or will provide audit or 2017-11-07 Agenda Packet Page 102 20 CHIP – THE CITY OF CHULA VISTA – REACH 2017 – 2018 (5834-122-04)Attachment A financial information to CHIP as requested. Subrecipient further assures that it will notify CHIP of completion of required audits and of any adverse findings which relate to or may impact this subaward. 2017-11-07 Agenda Packet Page 103 ATTACHMENT B CHIP CONTRACT NUMBER 5834-122-04 AGREEMENT WITH THE CITY OF CHULA VISTA FOR RACIAL AND ETHNIC APPROACHES TO COMMUNITY HEALTH (REACH) 2017 - 2018 SCOPE OF WORK CHIP – THE CITY OF CHULA VISTA – REACH 2016 - 2017 (5834-122-04)Attachment B 1.Scope of Work Contractor shall provide services forthe Racial and Ethnic Approaches to Community Health Project ("Project") incity-wide program work related to healthy food access (e.g. edible landscaping, urban agriculture and fast food restrictions) and physical activity (e.g. open streets and active transportation) in response to outcomes from the Healthy Chula Vista Action Plan Health Impact Analysis and related civic engagement. The Project supports effective implementation of existing policy, systems, and environmental improvements, and offers opportunities for the western Chula Vista community to take comprehensive action to address risk factors contributing to the most common and debilitating chronic conditions including poor nutrition and physical inactivity. Project activities will focus on improving access to healthy foods and beverages and opportunities for physical activity. 2.Background Information REACH is a national program financed in part by Prevention and Public Health funding and administered by the Centers for Disease Control and Prevention (CDC) aimed at reducing racial and ethnic disparities in health. Through REACH, CDC supports awardee partners that establish community-based programs and culturally tailored interventions serving African Americans, American Indians, Hispanics/Latinos, Asian Americans, Alaska Natives, and Pacific Islanders. The REACH partners use community-based, participatory approaches to identify, develop, and disseminate effective strategies for addressing health disparities across a widerange of health priority areas such as cardiovascular disease, diabetes, breast and cervical cancer, infant mortality, asthma, immunization, and obesity. Because the causes of racial and ethnic health disparities are complex and include individual, community, societal, cultural, and environmental factors, REACH’s approaches cut across a number of evidence-and practice-based interventions. Community Health Improvement Partners (CHIP) applied for and was awarded REACH funding for the Project through September 29 th, 2015. These funds will be used to address nutrition and physical activity risk factors in two high risk zip codes in Chula Vista, California (91910 and 91911). These are contiguous zip codes located in western Chula Vista, with 91910 bordering the northern edge of 91911. According to San Diego Association of Governments (SANDAG) Demographic & Socio-Economic Estimates for January 2013, the combined population in these two zip codes is 160,617. Community members in zip codes 91910 and 91911 are 67.13% Hispanic; 18.45% White; 3.05% Black; 0.27% AI; 8.75% Asian/Pacific Islander A/PI; and 2.32% Other. The median household income adjusted for inflation for zip codes 91910 and 91911 is below that of the city as a whole at $53,003 and $57,065, respectively. The American Community Survey (U.S. Census data) estimates that 12,735 residents in the targeted zip codes are ages 0 to 5 and of those, 9,826 are Hispanic. CHIP will act as the lead organization for the Project, responsible for overall coordination and reporting. CHIP achieves its mission using a Community Based Participatory Approach (CBPA) by forming initiatives, coalitions or work teams, targeting priority health issues identified by the community health needs assessment (CHNA). With core functions of assessment, outreach, education and advocacy, program development, and collaboration, CHIP’s current programs focus in the areas of obesity prevention, mental health, and access to care, all priority issue areas identified in the most recent (2013) CHNA. This partnership with the subrecipient will allow REACH to have a maximum impact in the proposed zip codes. The subrecipient shall provide support throughout the length of the contract. 2017-11-07 Agenda Packet Page 104 ATTACHMENT B CHIP CONTRACT NUMBER 5834-122-04 AGREEMENT WITH THE CITY OF CHULA VISTA FOR RACIAL AND ETHNIC APPROACHES TO COMMUNITY HEALTH (REACH) 2017 - 2018 SCOPE OF WORK CHIP – THE CITY OF CHULA VISTA – REACH 2016 - 2017 (5834-122-04)Attachment B 3.Goals, Objectives, and Requirements for Delivery 3.1. Subrecipient will lead the city-wide program work related to healthy food access (e.g. edible landscaping, urban agriculture and fast food restrictions) in response to outcomes from the Healthy Chula Vista Action Plan Health Impact Analysis and related civic engagement, focused especially on implementation of urban agriculture policy inclusive of community gardens. 3.2. Subrecipient will lead the city-wide program work related to physical activity (e.g. open streets and active transportation) in response to outcomes from the Healthy Chula Vista Action Plan Health Impact Analysis and related civic engagement, focused especially on revisions in the Recreation Plan that would allow underutilized park property to be used for gardens. 4.Target Population and Geographic Area 4.1. Target Populations: Contractor shall provide the services described herein to the following target population: 4.1.1.This REACH intervention targets all Hispanic individuals within the designated Geographic Area. 4.2. GeographicArea 4.2.1.The REACH interventions are to be implemented in the Chula Vista zip codes of 91910 and 91911. 5.Definitions 5.1.Dun and Bradstreet Data Universal Numbering System (DUNS) 5.1.1.A unique nine-digit identification number used to identify organizations and is assigned to organizations by Dun and Bradstreet. 5.2.Interventions 5.2.1.Interventions are the means to achieve the goals and objectives ofeach Project area. 5.3.Project 5.3.1.Project for the purposes of this Contract is the federal Centers for Disease Control-funded Racial and Ethnic Approaches to Community Health (REACH) Project and includes all funding and deliverables in this Contract. 6.Data Collection and Reporting Requirements 6.1. The Subrecipient shall complete four (4) categories of REACH reports to CHIP:(I)Monthly Fiscal Cost Report; (2) Monthly Performance Report; (3) Final Report; and (4) Intervention Reports for submission to CHIP. Submission dates are listed below. For the Monthly Fiscal Cost Report, the Subrecipient shall comply with all REACH reporting requirements outlined in Section 1512 Requirements, as stated in Section 3.7 of this Statement of Work. Subrecipient shall provide any additional reports and follow-up information as requested by CHIP. Matters concerning the technical performance of this subaward should be directed to the appropriate party’s PI, as shown in Attachment C. Technical reports are required as shown in Attachments B and D. 6.2.REACH Monthly Fiscal Cost Report 6.2.1. Subrecipient shall submit electronic monthly fiscal cost and data report including Section 1512 Requirements to CHIP by the fifth (5th) day after the end of the reporting month. CHIP will provide a template format and instructions for the report. The Subrecipient shall provide any additional follow-up information and reports requested by CHIP. 6.2.2. Weekends and holidays areno exception tothisreporting deadline. 6.3.REACH Monthly Performance Report 6.3.1. Subrecipient shall submit by the fifth (5th) day after the end of the reporting month an electronic Monthly Performance Report to CHIP. The Subrecipient shall provide any additional follow- up information and reports requested by CHIP. CHIP will provide a template format and instructions forthereport. Themonthly report shallinclude: 6.3.1.1. Progress 6.3.1.2. Challenges 2017-11-07 Agenda Packet Page 105 ATTACHMENT B CHIP CONTRACT NUMBER 5834-122-04 AGREEMENT WITH THE CITY OF CHULA VISTA FOR RACIAL AND ETHNIC APPROACHES TO COMMUNITY HEALTH (REACH) 2017 - 2018 SCOPE OF WORK CHIP – THE CITY OF CHULA VISTA – REACH 2016 - 2017 (5834-122-04)Attachment B 6.3.1.3. Documentation of activities completed to meet the goals and objectives of this Contract 6.3.2. Weekends and holidays are no exception to this reporting deadline. 6.4.REACH Final Report 6.4.1. Subrecipient shall submit an electronic Draft Final Report by the August 31, 2018 and a Final Report by September 30, 2018 forreview and approval by CHIP, covering the total Contract Term. 6.4.1.1.Report shallbe suitableformass distribution andprovide information including: 6.4.1.1.1. ExecutiveSummary 6.4.1.1.2.Program Accomplishments 6.4.1.1.3.StatusofAgreement Objectives 6.4.1.1.4.LessonsLearned 6.4.1.1.5.Evaluation Outcomes 6.4.1.1.6.Sustainability Plan (if applicable) 6.4.1.1.7.Any unanticipated or additional accomplishments 7.Debarment Requirements 7.1. Subrecipient shall supply all necessary information for debarment screening, including: 7.1.1.Legal first and last name of any employee working on subcontract. 2017-11-07 Agenda Packet Page 106 ATTACHMENT C Authorized Representatives CHIP CONTACTS SUBRECIPIENT CONTACTS Authorized Official Contract Officer: Stan Miller 5095 Murphy Canyon Road, Suite #105 San Diego, CA 92123 Phone: 858-609-7984 Email: smiller@sdchip.org Authorized Official Contract Officer: Stacey Kurz 276 Fourth Avenue Chula Vista, CA 91910 Phone: (619) 585-5609 Email: SKurz@chulavistaca.gov Principal Investigator: Cheryl Moder 5095 Murphy Canyon Road, Suite #105 San Diego, CA 92123 Phone: 858-609-7961 Email: cmoder@sdchip.org Principal Investigator: Stacey Kurz 276 Fourth Avenue Chula Vista, CA 91910 Phone: (619) 585-5609 Email: SKurz@chulavistaca.gov Financial Representative Ed Quinlan 5095 Murphy Canyon Road, Suite #105 San Diego, CA 92123 Phone: 858-609-7974 Email: equinlan@sdchip.org Financial Representative: Gary Halbert 276 Fourth Avenue Chula Vista, CA 91910 Phone: 619-691-5031 Email: ghalbert@chulavistaca.gov 2017-11-07 Agenda Packet Page 107 Attachment D REACH Reporting Requirements Definition.“Reporting” includes invoicing and technicalreporting. Invoicing.SubrecipientmustinvoicethePrimeRecipient: not less oftenthan quarterly not less often than monthly Amendment for Updated Reporting Requirements.A unilateral amendment may be issued to update reporting requirements in response to any additional requirements or guidance from the CDC including, but not limited to, the definition of terms and data elements, and specific instructions for reporting andreportformats. Name of Contact Person Stacey Kurz Mailing Street Address City of Chula Vista MailingStreetAddress 2 276 Fourth Avenue Place of Performance City, State, Zip Code (zip code + four) Chula Vista, CA 91910-2631 Telephone (619) 585-5609 Fax (619) 585-5698 Email SKurz@chulavistaca.gov 2017-11-07 Agenda Packet Page 108 Attachment D REACH Reporting Requirements Data tobe Reported A.Technical Reporting.In addition to any other technical reporting requirements set forth under this Subaward Agreement, when requested by the CHIP, the Subrecipient shall provide a brief update on cumulative programmatic achievements, including significant deliverablesormilestonesreached. B.Research Subaward Agreement data elements Sub Recipient DUNS 078726551 Sub Recipient Congressional District 51 Sub Recipient Legal Name, Address, City, State, Zip (zip plus four) City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910-2631 Sub Recipient EIN 95-6000690 Sub Recipient CCR registration, Yes or No Yes Amount of Subaward $30,007 2017-11-07 Agenda Packet Page 109 Attachment D REACH Reporting Requirements C.Performance Site Subrecipient shallidentify the physical location of the Primary Place of Performance of the Subaward. Place of Performance Street Address 1 276 Fourth Avenue Place of Performance Street Address 2 Place of Performance City Chula Vista Place of Performance State (two character code) CA Place of Performance Zip (zip code+ four) 91910-2631 Place of Performance Congressional District (two digit code) 51 Place of Performance CountryCode (two character code) US 2017-11-07 Agenda Packet Page 110 Attachment D REACH Reporting Requirements D.Most Highly Compensated Officers Subrecipient shall provide the names and total compensation of the five most highly compensated officers of the Subrecipient entityif the following items(1) and (2) apply. If either item (1) or (2) does not apply, the Subrecipient’s report shall include a statement certifying this. If these items do apply, but there is no change in the most highly compensated individuals or their total compensation, the Subrecipient’sreport shallinclude astatementcertifying this. (1)The Subrecipientin its precedingfiscal year received— (a)80 percent or more of its annual gross revenues in Federal awards; and (b)$25,000,000 or more in annual gross revenuesfromFederal awards; and (2)The public does not have access to information about the compensation of the senior executives of the entity through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986 [26 USC § 6104]. ‘‘Total compensation’’ means the cash and non-cash dollar value earned by the executive during the Subrecipient’s past fiscal yearof the following(for more information see 17 CFR 229.402(c) (2)): (i). Salaryand bonus. (ii). Awards of stock, stock options, and stock appreciation rights. Use the dollar amount recognized for financial statementreporting purposes withrespect to the fiscal year in accordance with FAS 123R. (iii). Earnings for services under non-equity incentive plans. Does not include group life, health, hospitalization or medical reimbursement plans that do not discriminate in favor of executives, and are availablegenerallyto all salaried employees. (iv). Change in pension value. This is the change in present value of defined benefit and actuarial pensionplans. (v). Above-marketearningsondeferredcompensation which are nottax qualified. (vi). Other compensation. For example, severance, termination payments, value of life insurance paid on behalf of the employee, perquisites or propertyif the value for the executiveexceeds $10,000. HIGHLYCOMPENSATEDOFFICERS If not exempt per Section 1512 of ARRA Officer 1 Name Officer1 Compensation Officer 2 Name Officer2 Compensation Officer 3 Name Officer3 Compensation Officer 4 Name Officer4 Compensation Officer 5 Name Officer5 Compensation YesExempt from reporting compensation (Yes or No)? 2017-11-07 Agenda Packet Page 111 Attachment D REACH Reporting Requirements E.Vendor Payments Equal to or in Excess of $25,000. Subrecipient mustreport, for anypayments made to a single vendor equal to or greater than $25,000, the identityof the vendor. Subrecipient shallreport the vendor name and DUNS number if available. If theDUNS is not available, theSubrecipientshall report on thevendor name and zip code of the vendor’s headquarters. Subrecipient will provide an estimate of vendor jobs created and retained includinga brief description of the methodologyused to calculate FTE estimates. For more informationon how to perform this calculation, please see OMB GuidanceM10-08 (foundat http://www.whitehouse.gov/omb/assets/memoranda_2010/m10-08.pdf). Please insertmorerows as needed. VENDORDATA Vendor DUNS (9 digit) VendorName Vendor Headquarters Zip Code (zip code plus 4) Product/ServiceDescription(s) PaymentAmount VendorJobs created andretained relatedto this purchase(FTEs) Job Titles Describehow youcalculated theFTE(s) 2017-11-07 Agenda Packet Page 112 ATTACHMENT E BUDGET NARRATIVE: City of Chula Vista will continue working on urban agriculture policy and activities to increase education and implementation of policy generated in years 1-3. In conjunction with the City’s Wellness Works committee, the City will work on a Healthy Meeting Policy to promote employee and resident health and wellness during City sponsored events. REACH Budget – Year 4 Job Descriptions,Titles, and Billing Rate: Name: Stacey Kurz Title:Senior Project Coordinator Job Description:Will be the primary point of contact for the City of Chula Vista. She will lead the program work related to healthy food access (e.g. edible landscaping, urban agriculture and fast food restrictions) and physical activity (e.g. open streets and active transportation). Name:TBD Title:Senior Office Specialist Job Description:Will provide limited administrative support and research. City of Chula Vista # of Hours Direct Costs Fringe Benefits Indirect Costs Total Request Senior Project Coordinator 239.9025 $16,298.98 $7,799.23 $5,908.80 $30,007 Totals 240 $16,299 $7,799 $5,909 $30,007 Hourly Rates Direct Fringe % of Direct Indirect % of Direct Total Hourly Rate Senior Project Coordinator $67.94 $32.51 48% $24.63 36% $125.07 Total Budget Requested: $30,007 2017-11-07 Agenda Packet Page 113 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING YEAR FOUR OF A SUB- AWARD AGREEMENT WITH COMMUNITY HEALTH IMPROVEMENT PARTNERS FOR THE RACIAL AND ETHNIC APPROACHES TO COMMUNITY HEALTH PROJECT, AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT AND THE CITY MANAGER TO EXECUTE ALL OTHER DOCUMENTS NECESSARY TO IMPLEMENT THE AGREEMENT, AND APPROPRIATING FUNDS THEREFOR IN FY 18 (4/5 VOTE REQUIRED) WHEREAS, cities play a critical role in supporting the health and well-being of their communities; and WHEREAS, the City of Chula Vista has been implementing its multi-department Healthy Chula Vista initiative over the last year, which focuses on integrating public health considerations across municipal capital projects, plans, and services; and WHEREAS, factors such as education levels, economic opportunities, health care access, transportation options, and public safety can lead to health disparities between different races and ethnicities; and WHEREAS, Community Health Improvement Partners received funding, through the Center for Disease Control and Prevention’s Racial and Ethnic Approaches to Community Health (REACH) program, to promote healthy eating and physical activity for Latinos living in the City’s 91910 and 91911 zip codes; and WHEREAS, the City approved year one, year two, and year three funding for the REACH program on June 2, 2015, October 13, 2015, and October 4, 2016, respectively, which provided technical assistance and offset staff costs associated with a needs assessment of recreational programming in the city and health awareness promotions; and WHEREAS, the REACH project has received an unexpected allocation for a fourth year of funding; and WHEREAS, the year four project will also provide the City with no-cost technical assistance and staff time funding to develop policies and plans supporting healthy food access. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it: 1. Approves a year four Sub-Award Agreement with Community Healthy Improvement Partners for the REACH project in the form presented, with such 2017-11-07 Agenda Packet Page 114 minor modifications as may be required or approved by the City Attorney, a copy of which is on file in the office of the City Clerk; and 2. Authorizes and directs the Mayor to execute the Agreement and the City Manager to execute all other documents necessary to implement the Agreement; and 3. Approves an appropriation $11,187 to the Other Expenses category of the Federal Grants Fund for Fiscal Year 2017-18. Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney 2017-11-07 Agenda Packet Page 115 City of Chula Vista Staff Report File#:16-0340, Item#: 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SUMMARILY VACATING THE EMERGENCY ACCESS EASEMENT OVER PARCEL 2 OF PARCEL MAP NO. 17802 (SEAWORLD AQUATICA) RECOMMENDED ACTION Council adopt the resolution. SUMMARY On December 24, 1996, the Chillingworth Corporation dedicated an Emergency Access Easement to the City of Chula Vista over parcel 2 of Parcel Map No. 17802 (Map). Sea World LLC currently owns the property and has requested that the Emergency Access Easement be vacated. A new Emergency Access Easement has been recorded to coincide with recent improvements to the site. Tonight’s action will complete the relocation of the Emergency Access Easement to the new driveway location. ENVIRONMENTAL REVIEW Environmental Notice The Project qualifies for a Class 5 Categorical Exemption pursuant to Section 15305 (Minor Alterations in Land Use Limitations) 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 proposed project consisting of the vacation of easements no longer used for the purpose for which these were dedicated or acquired as stipulated by state law and said actions will not result in the creation of any new parcel, qualifies for a Class 5 Categorical Exemption pursuant to Section 15305 (Minor Alterations in Land Use Limitations) of the State CEQA Guidelines. Thus, no further environmental review is required. BOARD/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION The Emergency Access Easement’s purpose was to reserve access for emergency services to enter on the property. The easement was located over the driveway entering the site. Since the dedication of the original easement, SeaWorld LLC, acquired the property and realigned the driveway. As a condition of approval of their building permit, SeaWorld LLC was required to dedicate a new emergency access easement and vacate the Original Emergency Access Easement. Part 3 (commencing with Section 8300) of Division 9 of the California Streets and Highways Code City of Chula Vista Printed on 11/2/2017Page 1 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 116 File#:16-0340, Item#: 4. Part 3 (commencing with Section 8300) of Division 9 of the California Streets and Highways Code (“Public Streets, Highways, and Service Easements Vacation Law”), at Chapter 4, provides the authority and procedures for the summary vacation of public service easements. Section 8333(c) of the Public Streets, Highways, and Service Easements Vacation Law specifically allows for summary vacation proceedings when an easement has been superseded by relocation, or determined to be in excess by the easement holder and there are no other public facilities located within the easement. Accordingly, the City Council may vacate the easements by adoption of a resolution stating all of the following: 1. That the vacation is made under Chapter 4 of the Public Streets, Highways, and Service Easements Vacation Law; 2. The name or designation of the easement and a precise description of the portion vacated (see Attachment 2); 3. The facts under which the vacation is made, and; 4. That from and after the date the resolution is recorded, the easements vacated no longer constitutes an open space, street, highway, or public service easement. The easement was dedicated when Parcel Map No. 17802 was recorded in the County Recorder’s office on December 24, 1996. The easement has been superseded by an Easement for Emergency Access Purposes recorded on April 28, 2017 as Document Number 2017-0192173. There are no public facilities located in the easement proposed to be vacated; thus the easement meets the requirements for summary vacation under section 8333(c) of the California Streets and Highways Code. 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. The proposed action addresses the Strong and Secure goal as it provides emergency access to the site. CURRENT YEAR FISCAL IMPACT All costs associated with processing the summary vacation are borne by the developer, resulting in no net fiscal impact to the General Fund or the Development Services Fund. ONGOING FISCAL IMPACT There is no ongoing fiscal impact associated with the vacation of the easement. Staff Contact: Chester Bautista, Associate Civil Engineer City of Chula Vista Printed on 11/2/2017Page 2 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 117 File#:16-0340, Item#: 4. City of Chula Vista Printed on 11/2/2017Page 3 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 118 RESOLUTION NO. 2017- __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SUMMARILY VACATING THE EMERGENCY ACCESS EASEMENT OVER PARCEL 2 OF PARCEL MAP NO. 17802 (SEAWORLD AQUATICA) WHEREAS, Sea World LLC has requested the vacation of the emergency access easement located over parcel 2 of Parcel Map No. 17802, as described on Exhibit “A”(Property); and WHEREAS, an emergency access easement was granted to the City of Chula Vista per Parcel Map No. 17802, recorded December 24, 1996; and WHEREAS, section 8333(c) of the California Streets and Highways Code states that the legislative body of a local agency may summarily vacate a public service easement if the easement has been superseded by relocation and there are no public facilities are located within the easement; and WHEREAS, the aforementioned easement has been superseded by relocation and there are no public facilities located within the easement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista as follows: 1. That, after considering the evidence submitted, it finds that the emergency access easement located within the Property has been superseded by relocation and that there are no in-place public facilities within the easement that would be affected by the vacation. 2. That, pursuant to section 8333(c) of the California Streets and Highways Code, it orders the summary vacation of the emergency access easement located within the Property, described and depicted in the attached Exhibit “B”. 3. That it directs the City Clerk to cause a certified copy of this Resolution of Vacation, attested by the Clerk under seal, to be recorded without acknowledgement, certificate of acknowledgement, or further proof in the Office of the County Recorder. Upon such recordation, the easements vacated shall no longer constitute public service easements and such vacations shall be complete. 2017-11-07 Agenda Packet Page 119 Resolution No. Page 2 Presented by Approved as to form by ___________________________ ___________________________ Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney 2017-11-07 Agenda Packet Page 120 Recording Requested by and Please Return to: City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, California 91912 This Instrument Benefits City Only. No Fee Required  This Space for Recorder's Use Only  APN(s)_________________________________________ C.V. File No.________________ EASEMENT FOR EMERGENCY ACCESS PURPOSES FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, hereby grant(s) to the CITY OF CHULA VISTA, a municipal corporation, in the County of San Diego, State of California, an easement and right-of-way for an emergency access way in, upon, over, and across that certain real property situated in said City of Chula Vista and more particularly described as follows: SEE ATTACHED: EXHIBIT A FOR LEGAL DESCRIPTION EXHIBIT B FOR PLAT Together with the right to enter upon and to pass and repass over and along said easement and right-of-way and to deposit tools, implements and other materials thereon by said City of Chula Vista, its officers, agents, and employees and by any contractor, his agents, and employees engaged by said City, whenever and wherever necessary for the purposes set forth above. Reserving however to the owner of the fee underlying this easement herein granted, the continued use of the surface of said real property, subject to the condition that the erecting of buildings, masonry walls, masonry fences, and other structures, the planting or growing of trees or shrubs, the changing of the surface grade, or the installation of privately-owned pipelines shall be prohibited unless written permission is first obtained from the City of Chula Vista. Signed this______ day of______________________, 20___ 2017-11-07 Agenda Packet Page 121 Modified 02/09/2017 C:\Users\GRANIC~1\AppData\Local\Temp\BCL Technologies\easyPDF 7\@BCL@5805511D\@BCL@5805511D.doc (Notary Acknowledgment Required for Each Signatory) This is to certify that the interest in real property conveyed herein to the City of Chula Vista, a governmental agency, is hereby accepted by the undersigned, City Clerk, on behalf of the Chula Vista City Council pursuant to authority conferred by Resolution No. 15645 of said Council adopted on June 5, 1990, and the grantee(s) consent(s) to the recordation thereof by its duly authorized officer. DONNA NORRIS, CITY CLERK By:__________________________________________ Date:____________________________ 2017-11-07 Agenda Packet Page 122 2017-11-07 Agenda PacketPage 123 2017-11-07 Agenda PacketPage 124 2017-11-07 Agenda PacketPage 125 2017-11-07 Agenda PacketPage 126 2017-11-07 Agenda PacketPage 127 City of Chula Vista Staff Report File#:17-0453, Item#: 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING STAFF TO SUBMIT REQUIRED DOCUMENTATION TO THE COUNTY OF SAN DIEGO TO INITIATE THE ADOPTION PROCESS OF AN URBAN AGRICULTURE INCENTIVE ZONE RECOMMENDED ACTION Council adopt the resolution. SUMMARY The State of California passed AB 551 in 2013 to allow jurisdictions to create Urban Agriculture Incentive Zones (UAIZ). UAIZ’s provide a tax incentive (by reducing property taxes) for landowners to use their vacant or blighted property for agricultural use for a minimum of five years. This is an effort to use otherwise vacant land, while creating an added benefit for the community. Tonight’s action would direct staff to initiate the zone adoption process with the County of San Diego and return for final adoption to the City Council in 2018. 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 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. BOARD/COMMISSION RECOMMENDATION On October 12, 2017, the Healthy Chula Vista Advisory Commission provided an advisory recommendation that Council approve (7-0) staff’s submittal of documentation to initiate the adoption process. DISCUSSION In keeping with the Healthy Community goal of the Strategic Plan, on January 5, 2016, the first Healthy Chula Vista Action Plan was adopted, providing a set of strategies to review, create and evaluate policies and programs within the City and to develop key community partnerships to promote wellness within our community. A key component of the plan included residents’ access to healthy food options. Consistent with the adopted Healthy Chula Vista Action Plan and its strategies, staff is recommending the adoption of an Urban Agriculture Incentive Zone (UAIZ) within Chula Vista as allowed by City of Chula Vista Printed on 11/1/2017Page 1 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 128 File#:17-0453, Item#: 5. the adoption of an Urban Agriculture Incentive Zone (UAIZ) within Chula Vista as allowed by Assembly Bill 551 passed in 2013 and recently amended in September 2017 (to extend the time period to create UAIZ’s). AB551 Overview AB 551 allows jurisdictions to identify and adopt an Urban Agriculture Incentive Zone (UAIZ), an incentive for landowners to enter into contract to use their otherwise “unused” property for agricultural use for a minimum of five years in exchange for a reduction in property tax. Rather than paying the standard applicable property tax rate (e.g. commercial tax rate for a commercial property), participating properties will be assessed at the annual average per acre value of irrigated cropland. For 2014, this amount was $12,500 per acre, or $0.29 per square foot. If this is less than the current assessed value of the land, then the owner will pay lower property taxes for the period of the contract. Interested landowners must enter into a contract prior to January 1, 2029, the sunset date of the State law. AB551 identifies eligible properties for such contracts as parcels: ·Between 0.1 acre and 3 acres in size (4,560 and 130,680 square feet); ·All the property must be used for commercial or noncommercial agricultural use; ·Free of any dwellings and only have physical structures that support the agricultural use; and, ·Permitted to have an agricultural use. County of San Diego Requirements The first step in the adoption of a UAIZ is approval by the County of San Diego, in its role as the tax assessor and collector. The County has developed a process to evaluate and approve the UAIZ designation, as outlined below: 1. Identify eligible parcels within the proposed UAIZ boundary. 2. Map out the proposed UAIZ boundary. 3. Provide a copy of the proposed ordinance. 4. Provide the following UAIZ program information: a. Scope of program b. Methodology used to determine blighted/vacant property c. Program (total) fiscal impact d. Copy of the proposed regulations to implement, enforce, administer said program e. Sample of proposed contract 5. Conduct a fiscal impact analysis for all affected taxing entities, including total amount of tax revenue reduction, through the county. 6. Send a written notice to all taxing entities who will be affected by establishing the UAIZ and its tax break, including the date/time of the Board of Supervisors meeting when the resolution will be approved. Staff would return to City Council for final approval of the UAIZ once the County Board of Supervisors has reviewed and approved the documentation and process outlined above. Such actions for Council’s future consideration would include an ordinance and any additional zoning changes that would enable the implementation of the UAIZ, along with a full fiscal impact analysis. It is anticipated that staff will bring back these items to the Planning Commission and then City Council in early to mid City of Chula Vista Printed on 11/1/2017Page 2 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 129 File#:17-0453, Item#: 5. that staff will bring back these items to the Planning Commission and then City Council in early to mid -2018. 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. This item supports Section 3.1.1 - Implement policies and programs that support a healthy community, by providing healthier options. CURRENT YEAR FISCAL IMPACT Staff costs associated with the preparation of this staff report and for the UAIZ adoption process are offset by grant funds through the Centers for Disease Control’s Racial and Ethnic Approaches to Community Health (REACH Chula Vista). ONGOING FISCAL IMPACT Potential ongoing impacts will be assessed through the County review process and brought forward to City Council for consideration in 2018. ATTACHMENTS None. Staff Contact:Stacey Kurz, Development Services Department City of Chula Vista Printed on 11/1/2017Page 3 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 130 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING STAFF TO SUBMIT REQUIRED DOCUMENTATION TO THE COUNTY OF SAN DIEGO TO INITIATE THE ADOPTION PROCESS OF AN URBAN AGRICULTURE INCENTIVE ZONE WHEREAS, jurisdictions are becoming increasingly aware that cities play a critical role in supporting the health and well-being of their communities; and WHEREAS, the Healthy Chula Vista Action Plan adopted January 5, 2016 included strategies to increase local food production and encourage urban agriculture within the City of Chula Vista; and WHEREAS, Assembly Bill 551 passed in 2013 and recently amended in September 2017 allows jurisdictions to adopt an Urban Agriculture Incentive Zone (“UAIZ”) for eligible landowners to enter into contract to use their otherwise “unused” property for agricultural use for a minimum of five years in exchange for a reduction in property tax; and WHEREAS, the first step in the adoption of an UAIZ is approval by the County of San Diego, in its role as the tax assessor and collector. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it authorizes staff to submit required documentation to the County of San Diego to initiate the adoption process of an Urban Agriculture Incentive Zone in Chula Vista. Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney 2017-11-07 Agenda Packet Page 131 City of Chula Vista Staff Report File#:17-0178, Item#: 6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING COUNCIL POLICY NO. 585-02: UTILITY TRENCH MORATORIUM POLICY AND ADOPTING CHULA VISTA CONSTRUCTION STANDARD CVCS 3A: MORATORIUM ROADWAY TRENCH RESURFACING RECOMMENDED ACTION Council adopt the resolution. SUMMARY The original Council Policy for Utility Trench Moratorium was adopted on June 5, 2012. In order to ensure sustainable roads and extend the pavement life, throughout the City, staff recommends amending the policy to extend the moratorium periods. The revised policy will also establish a new construction standard drawing to clarify the requirements for repairing trenches in newly paved and sealed public streets. 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 the activity consists of amending the Utility Trench Moratorium Policy, which does not involve any commitment to any specific project that may result in a potentially significant physical impact on 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. Although environmental review is not required at this time, once the scope of potential individual projects has been defined, environmental review will be required for each project and the appropriate environmental determination will be made. BOARD/COMMISSION RECOMMENDATION Not Applicable. DISCUSSION Background The City originally adopted Council Policy 585-02, Utility Trench Moratorium by Resolution 2012-096 (Attachment 1) on June 5, 2012. The purpose of this policy is to protect the integrity of City streets by implementing a trench cut moratorium which will limit developers, utility companies, and City City of Chula Vista Printed on 11/2/2017Page 1 of 4 powered by Legistar™2017-11-07 Agenda Packet Page 132 File#:17-0178, Item#: 6. by implementing a trench cut moratorium which will limit developers, utility companies, and City crews from damaging newly paved and resurface streets. The Council Policy 585-02 established a trench cut moratorium as follows: ·A 1-year moratorium for streets receiving a sealcoat, such as a slurry seal or chip seal. ·A 3-year moratorium for newly constructed, reconstructed streets and overlaid streets. In addition to the City’s regular standard for repairing utility trenches, CVCS 3&4 (Attachment 4), the policy required the following for trench repair during the moratorium: ·Lateral trenches (perpendicular to the curb) - Extend T-cut grind and overlay limits to 3 feet beyond each side of the trench. ·Longitudinal trenches (parallel to the curb) - Grind 1-1/2 inches minimum and place 1-1/2 inches minimum overlay over the entire lane that is impacted (regardless of the classification of the street). Findings Since the adoption of this policy, staff continues to observe pavement deterioration on City streets due to trenching. The City will undertake a large pavement rehabilitation program over the next few years based on Measure P, TransNet and new Gas Tax funding. It is advisable to protect these investments and minimize the damage from premature pavement cuts to ensure the expected life of the pavement is achieved. The main purpose of pavement rehabilitation and maintenance is to extend the life of an existing pavement. It is estimated that an overlay can extend the life of pavement by as much as 20 years. If utility trenching reduces pavement life by up to 50 percent, this is a significant reduction in the effectiveness of the City’s investment. The Pavement Asset Management (PAM) Committee reviewed policies of other agencies in the San Diego area to help evaluate the City’s current policy and develop recommendations for revisions. A summary of the information gathered to compare utility trench moratoriums is shown in Attachment 2. Trench cut moratorium information for several California agencies, including the City of Chula Vista is shown. After a review and comparison of the policies, staff recommends an increase in the moratorium period and a revision to the lateral trench repair detail to ensure a sustainable and structurally sound repair. Additionally, two agencies have a Street Damage Restoration fee imposed in order to recover costs associated with the decrease in the useful life of the pavement caused by trenching. The fee is somewhat subjective and the City’s PAM committee recommends that it not be implemented at this time. Proposed Policy Revisions The proposed Council Policy is provided as attachment 3. The revisions are: 1. The Trench Cut Moratorium period begins immediately upon completion of the paving. ·A 3-year moratorium for streets receiving a sealcoat, such as slurry seal or chip seal. ·A 5-year moratorium for newly constructed streets and streets receiving major rehabilitation of City of Chula Vista Printed on 11/2/2017Page 2 of 4 powered by Legistar™2017-11-07 Agenda Packet Page 133 File#:17-0178, Item#: 6. ·A 5-year moratorium for newly constructed streets and streets receiving major rehabilitation of one inch or greater, such as reconstruction or overlay. 2. Trench Repair Requirements for Street under Moratorium ·Lateral trenches (perpendicular to the curb) - Extend T-cut grind and overlay limits to 10 feet beyond each side of the trench and over the entire lane that is impacted (regardless of street classification). This is described in the new Chula Vista Construction Standard CVCS 3A “Moratorium Roadway Trench Resurfacing” (Attachment 4). ·Longitudinal trenches (parallel to the curb) - No change. If adopted, the proposed Council Policy will supersede other existing rules and regulations regarding utility trenching and pavement repairs on moratorium streets. Development Services staff will review permit applications that include street trenching and confer with Engineering Department Pavement Management staff to determine applicability of the moratorium policy before issuance of the permit. Coordination with Utility Companies City staff (Public Works and Engineering) and representatives of the utility companies attend the Utility Coordination Committee (UCC) bi-monthly meeting to discuss their upcoming projects, including pavement rehabilitation programs and planned utility upgrades. The intent of this meeting is to better plan and schedule pavement rehabilitation after the scheduled work by the utility companies in order to reduce impacts to the City’s infrastructure. The UCC receives the initial lists of project locations and as-built lists during the Utility Coordination Meeting. The proposed revisions were presented to the UCC, discussed and accepted. 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. This item supports Section 3.1.1 - Implement policies and programs that support a healthy community, by providing for more complete planning and design of pavement rehabilitation of streets that address all users. CURRENT YEAR FISCAL IMPACT There is no direct fiscal impact to the General Fund from approval of Council Policy No. 585-02 (Utility Trench Moratorium Policy) and adopting CVCS 3A (Moratorium Roadway Trench Resurfacing). City of Chula Vista Printed on 11/2/2017Page 3 of 4 powered by Legistar™2017-11-07 Agenda Packet Page 134 File#:17-0178, Item#: 6. ONGOING FISCAL IMPACT None. ATTACHMENTS 1.Existing Council Policy 585-02 and Resolution No. 2012-096 2.Utility Trench Moratorium Information 2017 3.Proposed Council Policy 585-02 4.Proposed Chula Vista Construction Standard (CVCS 3A) “Moratorium Roadway Trench Resurfacing” and current CVCS 3 & 4 Staff Contact: Mari Malong, Associate Engineer, Public Works Department City of Chula Vista Printed on 11/2/2017Page 4 of 4 powered by Legistar™2017-11-07 Agenda Packet Page 135 2017-11-07 Agenda Packet Page 136 2017-11-07 Agenda Packet Page 137 2017-11-07 Agenda Packet Page 138 No.California, Agency Population (YR) Maintained Streets (centerline miles) Average PCI (YR) Moratorium for Resurfacing Overlay (YR) Moratorium for Preservation Slurry (YR) Weblink References (Attached)Street Damage Restoration Fee Standard Roadway Moratorium Trench Resurfacing Standard Trench Resurfacing 1 City of Chula Vista 265,757 (2015) 463 74 (2017)3 1 http://www.chulavistaca.gov/dep artments/public-works/asset- management/pavement- management Resolution no.201-096 / Policy Number 585-02 June 5, 2012 CVCS 3 & 4 (2004) 2 City of San Diego 1.39M (2015) 2,992 71 5 3 http://docs.sandiego.gov/munico de/MuniCodeChapter06/Ch06Art 02Division12.pdf SD Municipal Code 62.1208, 1209, 1210 and 1216 $0.13/SF-$3.94/SF (50% of cost recovery 2014) up to 25 years SDG-107 (2014), SDG- 117 (2014), SDG-108 (2015) 3 City of Oakland 419,267 (2015) 806 60 (2013)5 5 http://www2.oaklandnet.com/Go vernment/o/PWA/o/EC/s/STS/OA K030328 Paving Contracts, Five-Year Moratorium 4 City of Los Angeles 3.97M (2015) 6,500 62 (2013)1 0 http://eng.lacity.org/techdocs/permit s/7_3.pdf Ordinances 171922-24 and Council File 14-1571-S1 $5.18/SF-$21.26/SF up to 25 years See 7.3-Excavation Moratorium #s 1&4 5 City of Newport Beach 87,127 (2015) 243 76 (2009)5 3 http://ecms.newportbeachca.gov/ Web/DocView.aspx?dbid=0&id=1 09551&page=1&cr=1 Special Conditions for Moratorium Street/Alley Trenching City's Dwg # STD-105- L-F (10' ea side) STL-105-L-A to G (2002) 6 City of San Jose 1.03M (2015) 2,400 63 (2015)2 2 http://www.sanjoseca.gov/index.a spx?nid=3245 7 City of Pleasant Hill 34,810 (2015) 110 66 (2016)5 5 http://www.ci.pleasant- hill.ca.us/968/Street-Resurfacing- Program 8 County of San Diego 3.3M (2015) 2,000 60 3 3 http://www.sandiegocounty.gov/con tent/dam/sdc/dpw/COUNTY_ROADS/ roadspdf/policy_ro_7.pdf Policy RO-7 effective 6/1/2000 SDRSD G24 and G25 (2015 latest) UTILITY TRENCH MORATORIUM INFORMATION 2017 10/13/2017 By: Mari 2017-11-07 Agenda Packet Page 139 ATTACHMENT 3 (PROPOSED) COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: UTILITY TRENCH MORATORIUM POLICY POLICY NUMBER EFFECTIVE DATE PAGE 585-02 TBD 1 OF 2 ADOPTED BY: Resolution No. 2012-096 DATED: June 5, 2012 AMENDED BY: Resolution No. 2017-(000) TBD BACKGROUND The City previously adopted Resolution Number 2012-096, Utility Trench Moratorium Policy No. 585- 02, implementing a trench cut moratorium to limit developers, utility companies, and City crews from damaging newly paved or resurfaced streets. Many studies have indicated that a utility cut damages an area of pavement larger than the actual area of the excavation. So in line with the St ate of California and other cities, the City of Chula Vista requires the utility contractors to reconstruct the street from curb to curb wherever a utility cut/trench is between them. The City also requires all trench cuts to be T-cuts, to reduce the negative impacts of the trench cut. In addition, Chapter 12.16 of the Municipal Code allows the Director of Public Works to require the person repaving the excavation to apply a seal coat at any time within two years of the time of repaving. In order to better manage the pavement degradation as a result of utility trenches, staff conducted further review of other moratorium policies from neighboring agencies in California. Staff therefore recommends extending the periods of the Ut ility Trench Moratorium policy. The longer restriction periods will extend the life and structure of the pavement. It is also recommended that , like many of the neighboring agencies, the City require resurfacing at least the length of excavation from curb to curb or from curb line to the raised median. PURPOSE To revise the existing Utility Trench Moratorium policy by increasing the moratorium periods from one to three year moratorium for streets receiving a slurry or chip seal and increasing from three to five year moratorium for newly constructed, reconstructed, and overlaid streets. In order to clarify the procedures for trench repair requirements for streets under moratorium, the City has adopted a new construction standard CVCS-#New “Moratorium Roadway Trench Resurfacing.” PROCEDURES 1. Trench Cut Moratorium  3-year moratorium for streets receiving a sealcoat, such as a slurry seal or chip seal.  5-year moratorium for newly constructed and reconstructed streets and for streets receiving overlays and treatments one-inch thick or greater.  The moratorium shall be in force during the construction period, and the timed moratorium period will begin upon the filing of the Notice of Completion for the construction project including the affected streets.  For newly constructed streets, the moratorium shall begin to be enforced when the streets are given the final pavement cap, and the timed moratorium period will begin upon the filing of 2017-11-07 Agenda Packet Page 140 ATTACHMENT 3 (PROPOSED) COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: UTILITY TRENCH MORATORIUM POLICY POLICY NUMBER EFFECTIVE DATE PAGE 585-02 TBD 2 OF 2 ADOPTED BY: Resolution No. 2012-096 DATED: June 5, 2012 AMENDED BY: Resolution No. 2017-(000) TBD the Notice of Completion. 2. Trench Repair Requirements for Streets under Moratorium  Lateral trenches (perpendicular to the curb) – Extend T-cut grind and overlay limits to 10 feet beyond each side of the trench and over the entire lane that is impacted (regardless of street classification).  Longitudinal trenches (parallel to the curb) – grind 1-1/2 inches minimum and place 1-1/2 inches minimum overlay over the entire lane that is impacted (regardless of the classification of the street).  Use Chula Vista Construction Standard CVCS #New 3. Excavations of streets not under the Utility Trench Moratorium Use Chula Vista Construction Standards, CVCS 3 & 4 and CVMC Chapter 12.16. CITY STAFF RESPONSIBILITIES AND PROCEDURES: 1. This policy requires coordination and cooperation by sections within the Engineering and Development Services Departments. Engineering staff will provide information on streets subject to the moratorium to Development Services staff that are responsible for issuing utility excavation permits. 2. The Project Manager/Engineering staff will notify utility companies of pending roadway construction and/or pavement resurfacing and rehabilitation projects. IMPLEMENTATION 1. Streets that are constructed or rehabilitated and have received a Notice of Co mpletion (NOC) on or after the Effective Date of this revision will be subject to all provisions of this policy. 2. Streets that have received an NOC prior to the Effective Date will be subject to the requirements of the original moratorium policy adopted by Resolution 2012-096. REFERENCES  Standard Specifications for Public Works Construction (Greenbook), Section 306-1.5, “Trench Resurfacing”  Chula Vista Construction Standards: CVCS 3 & 4 and CVCS #New  CVMC Chapter 12.16 Excavations  Street Pavement Moratorium weblink: http://54.245.80.46/ChulaVistaSL/ (CVmapper) 2017-11-07 Agenda Packet Page 141 2017-11-07 Agenda Packet Page 142 2017-11-07 Agenda Packet Page 143 2017-11-07 Agenda Packet Page 144 RESOLUTION NO. 2017-___ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING COUNCIL POLICY NO. 585-02: UTILITY TRENCH MORATORIUM POLICY AND ADOPTING CHULA VISTA CONSTRUCTION STANDARD CVCS 3A MORATORIUM ROADWAY TRENCH RESURFACING WHEREAS, Council Policy No. 585-02, Utility Trench Moratorium, was adopted by Resolution No. 2012-096 on June 5, 2012; and WHEREAS, the purpose of this policy is to protect the integrity of City streets by implementing a trench cut restoration requirement during the moratorium periods; and WHEREAS, since the adoption of the policy, staff continues to observe pavement deterioration on City streets due to trenching; and WHEREAS, the City will undertake a large pavement rehabilitation program over the next few years with Measure P, TransNet, and new Gas Tax funding and it is advisable to protect these investments and minimize the damage from premature pavement cuts (trenches); and WHEREAS, the purpose of this resolution is to amend Council Policy No. 585-02, revising minimum moratorium period from one year to three years for seal coats and related maintenance treatments, and from three years to five years for overlays, reconstruction, and new streets; and WHEREAS, trenching that is done during the moratorium period is proposed to meet the requirements, as stipulated in the revised Utility Trench Moratorium Policy (Exhibit A); and WHEREAS, in conjunction with the amendment to the Council Policy No. 585-02, staff recommends the adoption of a new Chula Vista Construction Standard (CVCS 3A) “Moratorium Roadway Trench Resurfacing” drawing (Exhibit B). NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it amends Council Policy No. 585-02: Utility Trench Moratorium and adopts Chula Vista Construction Standard CVCS3A: Moratorium Roadway Trench Resurfacing. Presented by Approved as to form by William S. Valle Glen R. Googins Director of Engineering & Capital Projects/ City Attorney City Engineer Exhibit A 2017-11-07 Agenda Packet Page 145 Exhibit B 2017-11-07 Agenda Packet Page 146 City of Chula Vista Staff Report File#:17-0409, Item#: 7. A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND KLEINFELDER CONSTRUCTION SERVICES, INC. TO PROVIDE ON-CALL CIP CONSTRUCTION MANAGEMENT CONSULTING SERVICES B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND DHS CONSULTING, INC. TO PROVIDE ON-CALL CIP CONSTRUCTION MANAGEMENT CONSULTING SERVICES C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND PROJECT PROFESSIONALS CORPORATION TO PROVIDE ON-CALL CIP CONSTRUCTION MANAGEMENT CONSULTING SERVICES RECOMMENDED ACTION Council adopt the resolutions. SUMMARY The Department of Engineering and Capital Projects has identified the need to enlist qualified consultants periodically to assist with construction management activities. These on-call consultant services would augment city staff and provide timely, as needed, Construction Management and Inspection services for City Capital Improvement Projects. 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. City of Chula Vista Printed on 11/2/2017Page 1 of 5 powered by Legistar™2017-11-07 Agenda Packet Page 147 File#:17-0409, Item#: 7. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION BACKGROUND The Department of Engineering and Capital Projects staff manages the preliminary engineering, design, construction management, and inspection of the City’s CIP projects. It is critical that the construction management and inspection work keep pace with upcoming CIP projects. City staff anticipates the need to secure the assistance of construction management consultant teams on an as-needed basis for the following reasons: 1. On a typical fiscal year, the Engineering and Capital Projects Department is responsible for about $21 million of CIP projects. Due to increase in funding associated with Measure P, the current fiscal year’s CIP exceeds $90 million. 2. With the passage of Senate Bill 1 (SB1), new Road Maintenance and Rehabilitation Account (RMRA) funds will also be available for new CIPs beginning on November 1, 2017. 3. Staff anticipates that an increase in the number of CIP projects will continue for the next few years. Some of the large CIP projects include various disciplines such as Drainage, Pavement, Traffic, and Wastewater. 4. The City made commitments to deliver improvements for infrastructure throughout Chula Vista that will take significant effort to plan, fund, and construct. 5. Consultants will be able to assist with construction management and inspection when workload exceeds existing staffing levels. The use of outside consultants to provide technical assistance for the short-term is a more efficient way to handle the additional workload staff anticipates. SCOPE OF WORK Typical services that the City may require during the construction phase of CIP projects will involve construction management tasks such as: - Field Inspection - Contract Administration - Project Management - Stormwater Inspection - Stormwater Compliance The proposed contracts include/require the following: A. Civil infrastructure construction project management and administration, inspection services or other associated construction management services. The number and scope of projects will vary. City of Chula Vista Printed on 11/2/2017Page 2 of 5 powered by Legistar™2017-11-07 Agenda Packet Page 148 File#:17-0409, Item#: 7. B. Personnel that are experienced in a variety of construction methods, project management, field inspection, contract administration and other related duties. C. Services that may include: a. Supervise and inspect traffic controls. b. Pre-construction and post-construction stormwater monitoring and inspections. c. Contractor compliance with federal, state and local safety rules and regulations. d. Mandatory safety training. e. Preparation and submittal of daily reports of construction activities in a manor acceptable to the City. f. Verification of contractor prevailing wage payments and compliance with federal and state labor regulations. g. Processing of contract change orders. D. Billing forms and procedures acceptable to the City. CONSULTANT SELECTION PROCESS In August 2017, the City of Chula Vista issued a Request for Qualifications (RFQ) to secure On-Call CIP Construction Management Consulting Services for various projects. Nine consultant teams responded to the RFQ. In accordance with City ordinances and policies, the Director of Engineering and Capital Projects assigned staff to act as a selection committee to evaluate the proposals and prepare a list ranking the responding firms. The selection committee evaluated and ranked the proposals. The ranking was based on an evaluation criterion that included the following: the consultant's construction management and inspection experience, project approach, the capacity to perform the work, the quality of the management team, and past work references. Five teams were selected for interviews in September 2017: 1. Klienfelder Inc. - San Diego, CA 2. TRC - San Diego, CA 3. DHS Consulting, Inc. - San Diego, CA 4. Project Professional Corporation - San Diego CA 5. Abadjis Systems Ltd. - San Diego, CA City of Chula Vista Printed on 11/2/2017Page 3 of 5 powered by Legistar™2017-11-07 Agenda Packet Page 149 File#:17-0409, Item#: 7. Upon the conclusion of the consultant interviews and deliberations by the consultant selection committee, the committee selected Kleinfelder Inc., DHS Consulting, Inc., and Project Professional Corporation as the three top ranking teams. Fee schedules and contract details have been successfully negotiated with the teams (prime and the sub-consultants). Agreements are attached (Attachments 1, 2 and 3). 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. Approving consultant agreements for construction management and inspection work supports the Operational Excellence goal as it provides the ability to respond to temporary increases in workload to maintain quality inspection without an increase in permanent staff. CURRENT YEAR FISCAL IMPACT All fees for Consultant's services will be paid from funds already allocated for CIP or development funded projects. Each Consultant may work on one or more CIP projects. The two year contract will be eligible for three one-year extensions upon mutual agreement. Should the need arise to contract for consultant services, the costs associated with delivering a project could increase as staff’s oversight would be required in addition to the consultant fees. ONGOING FISCAL IMPACT None ATTACHMENTS 1. CITY OF CHULA VISTA CONSULTANT SERVICES AGREEMENT WITH KLEINFELDER CONSTRUCTION SERVICES, INC. TO PROVIDE ON-CALL CIP CONSTRUCTION MANAGEMENT CONSULTING SERVICES 2. CITY OF CHULA VISTA CONSULTANT SERVICES AGREEMENT WITH DHS CONSULTING INC. TO PROVIDE ON-CALL CIP CONSTRUCTION MANAGEMENT CONSULTING City of Chula Vista Printed on 11/2/2017Page 4 of 5 powered by Legistar™2017-11-07 Agenda Packet Page 150 File#:17-0409, Item#: 7. SERVICES 3. CITY OF CHULA VISTA CONSULTANT SERVICES AGREEMENT WITH PROJECT PROFESSIONALS CORPORATION TO PROVIDE ON-CALL CIP CONSTRUCTION MANAGEMENT CONSULTING SERVICES Staff Contact: Jonathan Salsman, Senior Civil Engineer City of Chula Vista Printed on 11/2/2017Page 5 of 5 powered by Legistar™2017-11-07 Agenda Packet Page 151 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND KLEINFELDER CONSTRUCTION SERVICES, INC. TO PROVIDE ON-CALL CIP CONSTRUCTION MANAGEMENT CONSULTING SERVICES WHEREAS, the City of Chula Vista has identified the need to enlist qualified consultants to assist City engineering construction inspection staff due to the current number and pace of projects and the proposed large infrastructure efforts associated with the recently voter approved Measure P in Chula Vista; and WHEREAS, on August 4, 2017, City issued a Request for Qualifications (RFQs) for On- Call CIP Construction Management Consulting Services; and WHEREAS, City received nine (9) Statement of Qualifications (SOQs) from consultant teams interested in providing such services; and WHEREAS, after City completed its review of the proposals, five (5) teams were interviewed in September 2017; and WHEREAS, after the interview process for all five teams, staff recommends Kleinfelder Construction Services, Inc. as one of three consultant teams to provide such services; and WHEREAS, the consultant selection process has been conducted in accordance with Section 2.56.110.C of the Chula Vista Municipal Code; and WHEREAS, City may procure work on zero up to several projects of varying size and complexity throughout the duration of the consultant agreement; and WHEREAS, the consultant agreement will be a two-year contract and will be eligible for three (3) one-year extensions upon mutual agreement of the parties; and WHEREAS, the combined total of all assigned projects per the consultant agreement will not exceed $2,000,000. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Consultant Services Agreement between the City of Chula Vista and Kleinfelder Construction Services, Inc., in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk and authorizes and directs the Mayor to execute same. 2017-11-07 Agenda Packet Page 152 Presented by Approved as to form by William S. Valle Glen R. Googins Director of Engineering & Capital Projects City Attorney 2017-11-07 Agenda Packet Page 153 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND DHS CONSULTING, INC. TO PROVIDE ON-CALL CIP CONSTRUCTION MANAGEMENT CONSULTING SERVICES WHEREAS, the City of Chula Vista (City) has identified the need to enlist qualified consultants to assist City engineering construction inspection staff due to the current number and pace of projects and the proposed large infrastructure efforts associated with the recently voter approved Measure P in Chula Vista; and WHEREAS, on August 4, 2017, City issued a Request for Qualifications (RFQs) for On- Call CIP Construction Management Consulting Services; and WHEREAS, City received nine (9) Statement of Qualifications (SOQs) from consultant teams interested in providing such services; and WHEREAS, after City completed its review of the proposals, five (5) teams were selected for interviews in September 2017; and WHEREAS, after the interview process for all five teams, staff recommends DHS Consulting Inc., as one of the three consultant teams to provide such services; and WHEREAS, the consultant selection process has been conducted in accordance with Section 2.56.110.C of the Chula Vista Municipal Code; and WHEREAS, City may procure work on zero up to several projects of varying size and complexity throughout the duration of the consultant agreement; and WHEREAS, the consultant agreement will be a two-year contract and will be eligible for three (3) one-year extensions upon mutual agreement of the parties; and WHEREAS, the combined total of all assigned projects per the consultant agreement will not exceed $2,000,000. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Consultant Services Agreement between the City of Chula Vista and DHS Consulting Inc., in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk and authorizes and directs the Mayor to execute same. 2017-11-07 Agenda Packet Page 154 Presented by Approved as to form by William S. Valle Glen R. Googins Director of Engineering & Capital Projects City Attorney 2017-11-07 Agenda Packet Page 155 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A CONSULTANT SERVICES AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND PROJECT PROFESSIONALS CORPORATION TO PROVIDE ON-CALL CIP CONSTRUCTION MANAGEMENT CONSULTING SERVICES WHEREAS, the City of Chula Vista (City) has identified the need to enlist qualified consultants to assist City engineering construction inspection staff due to the current number and pace of projects and the proposed large infrastructure efforts associated with the recently voter approved Measure P in Chula Vista; and WHEREAS, on August 4, 2017, City issued a Request for Qualifications (RFQs) for On- Call CIP Construction Management Consulting Services; and WHEREAS, City received nine (9) Statement of Qualifications (SOQs) from consultant teams interested in providing such services; and WHEREAS, after City completed its review of the proposals, five (5) teams were selected for interviews in September 2017; and WHEREAS, after the interview process for all five teams, staff recommends Project Professionals Corporation as one of the three consultant teams to provide such services; and WHEREAS, the consultant selection process has been conducted in accordance with Section 2.56.110.C of the Chula Vista Municipal Code; and WHEREAS, City may procure work on zero up to several projects of varying size and complexity throughout the duration of the consultant agreement; and WHEREAS, the consultant agreement will be a two-year contract and will be eligible for three (3) one-year extensions upon mutual agreement of the parties; and WHEREAS, the combined total of all assigned projects per the consultant agreement will not exceed $2,000,000. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the Consultant Services Agreement between the City of Chula Vista and Project Professionals Corporation, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk and authorizes and directs the Mayor to execute same. 2017-11-07 Agenda Packet Page 156 Presented by Approved as to form by William S. Valle Glen R. Googins Director of Engineering & Capital Projects City Attorney 2017-11-07 Agenda Packet Page 157 1 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 CITY OF CHULA VISTA CONSULTANT SERVICES AGREEMENT WITH KLEINFELDER CONSTRUCTION SERVICES, INC. TO PROVIDE ON-CALL CIP CONSTRUCTION MANAGEMENT CONSULTING SERVICES This Agreement is entered into effective as of November 7, 2017 (“Effective Date”) by and between the City of Chula Vista, a chartered municipal corporation (“City”) and Kleinfelder Construction Services, Inc., a California Corporation (“Consultant”) (collectively, the “Parties” and, individually, a “Party”) with reference to the following facts: RECITALS WHEREAS, the City desires to procure qualified civil infrastructure construction inspection and construction management consultant services to assist the City’s engineering staff due to the current number and pace of Capital Improvement Program projects and the proposed large infrastructure effort associated with the recently voter approved Measure P in Chula Vista; and WHEREAS, On August 4, 2017, the City issued a Request for Qualifications (RFQ) for On-Call CIP Construction Management Consulting Services; and WHEREAS, the City of Chula Vista received nine (9) proposals from firms interested in providing On- Call CIP Construction Management Consulting services; and, WHEREAS, after the City completed its review of the proposals five (5) firms were selected for interviews, which were conducted on September 20, 2017; and, WHEREAS, after the interview process for all five (5) firms, the consultant selection committee determined Consultant as one of three best qualified firms to provide the services described in the Agreement; and, WHEREAS, the consultant selection process has been conducted in accordance with Section 2.56.110.C of the Chula Vista Municipal Code; and WHEREAS, Consultant warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Consultant to City in accordance with the time frames and the terms and conditions of this Agreement. [End of Recitals. Next Page Starts Obligatory Provisions.] 2017-11-07 Agenda Packet Page 158 2 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 OBLIGATORY PROVISIONS NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and Consultant hereby agree as follows: 1. SERVICES 1.1 Required Services. Consultant agrees to perform the services, and deliver to City the “Deliverables” (if any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the time frames set forth therein, time being of the essence for this Agreement. The services and/or Deliverables described in Exhibit A shall be referred to herein as the “Required Services.” 1.2 Reductions in Scope of Work. City may independently, or upon request from Consultant, from time to time, reduce the Required Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction. 1.3 Additional Services. Subject to compliance with the City’s Charter, codes, policies, procedures and ordinances governing procurement and purchasing authority, City may request Consultant provide additional services related to the Required Services (“Additional Services”). If so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the Additional Services shall be charged and paid consistent with the rates and terms already provided therein. Once added to Exhibit A, “Additional Services” shall also become “Required Services” for purposes of this Agreement. 1.4 Standard of Care. Consultant expressly warrants and agrees that any and all Required Services hereunder shall be performed in accordance with the highest standard of care exercised by members of the profession currently practicing under similar conditions and in similar locations. 1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Consultant of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Consultant or its subcontractors. 1.6 Security for Performance. In the event that Exhibit A Section 4 indicates the need for Consultant to provide additional security for performance of its duties under this Agreement, Consultant shall provide such additional security prior to commencement of its Required Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by the City Attorney. 1.7 Compliance with Laws. In its performance of the Required Services, Consultant shall comply with any and all applicable federal, state and local laws, including the Chula Vista Municipal Code. 1.8 Business License. Prior to commencement of work, Consultant shall obtain a business license from City. 1.9 Subcontractors. Prior to commencement of any work, Consultant shall submit for City’s information and approval a list of any and all subcontractors to be used by Consultant in the performance of the Required Services. Consultant agrees to take appropriate measures necessary to ensure that all 2017-11-07 Agenda Packet Page 159 3 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 subcontractors and personnel utilized by the Consultant to complete its obligations under this Agreement comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In addition, if any subcontractor is expected to fulfill any responsibilities of the Consultant under this Agreement, Consultant shall ensure that each and every subcontractor carries out the Consultant’s responsibilities as set forth in this Agreement. 1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date or Consultant’s commencement of the Required Services hereunder, and shall terminate when the Parties have complied with all their obligations hereunder; provided, however, provisions which expressly survive termination shall remain in effect. 2. COMPENSATION 2.1 General. For satisfactory performance of the Required Services, City agrees to compensate Consultant in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment are set forth in this Section 2. 2.2 Detailed Invoicing. Consultant agrees to provide City with a detailed invoice for services performed each month, within thirty (30) days of the end of the month in which the services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date of the Agreement. All charges must be presented in a line item format with each task separately explained in reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced to date, and the remaining amount available under any approved budget. Consultant must obtain prior written authorization from City for any fees or expenses that exceed the estimated budget. 2.3 Payment to Consultant. Upon receipt of a properly prepared invoice and confirmation that the Required Services detailed in the invoice have been satisfactorily performed, City shall pay Consultant for the invoice amount within thirty (30) days. Payment shall be made in accordance with the terms and conditions set forth in Exhibit A and section 2.4, below. At City’s discretion, invoices not timely submitted may be subject to a penalty of up to five percent (5%) of the amount invoiced. 2.4 Retention Policy. City shall retain ten percent (10%) of the amount due for Required Services detailed on each invoice (the “holdback amount”). Upon City review and determination of Project Completion, the holdback amount will be issued to Consultant. 2.5 Reimbursement of Costs. City may reimburse Consultant’s out-of-pocket costs incurred by Consultant in the performance of the Required Services if negotiated in advance and included in Exhibit A. Unless specifically provided in Exhibit A, Consultant shall be responsible for any and all out-of-pocket costs incurred by Consultant in the performance of the Required Services. 2.6 Exclusions. City shall not be responsible for payment to Consultant for any fees or costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City shall also not be responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of Consultant, its agents, employees, or subcontractors. 2.7 Payment Not Final Approval. Consultant understands and agrees that payment to the Consultant or reimbursement for any Consultant costs related to the performance of Required Services does not constitute a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for 2017-11-07 Agenda Packet Page 160 4 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 payment under this Agreement, nor does it constitute a waiver of any violation by Consultant of the terms of this Agreement. If City determines that Consultant is not entitled to receive any amount of compensation already paid, City will notify Consultant in writing and Consultant shall promptly return such amount. 3. INSURANCE 3.1 Required Insurance. Consultant must procure and maintain, during the period of performance of Required Services under this Agreement, and for twelve months after completion of Required Services, the policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this reference (the “Required Insurance”). The Required Insurance shall also comply with all other terms of this Section. 3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions relating to the Required Insurance must be disclosed to and approved by City in advance of the commencement of work. 3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best’s rating of A V or better, or, if insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best’s rating of no less than A X. For Workers’ Compensation Insurance, insurance issued by the State Compensation Fund is also acceptable. 3.4 Subcontractors. Consultant must include all sub-consultants/sub-contractors as insureds under its policies and/or furnish separate certificates and endorsements demonstrating separate coverage for those not under its policies. Any separate coverage for sub-consultants must also comply with the terms of this Agreement. 3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified as required in Exhibit B or as may otherwise be specified by City’s Risk Manager.. The general liability additional insured coverage must be provided in the form of an endorsement to the Consultant’s insurance using ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude Products/Completed Operations coverage. 3.6 General Liability Coverage to be “Primary.” Consultant’s general liability coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance provided by Consultant and in no way relieves Consultant from its responsibility to provide insurance. 3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required insured period under this Agreement, except after thirty days’ prior written notice to the City by certified mail, return receipt requested. Prior to the effective date of any such cancellation Consultant must procure and put into effect equivalent coverage(s). 3.8 Waiver of Subrogation. Consultant’s insurer(s) will provide a Waiver of Subrogation in favor of the City for each Required Insurance policy under this Agreement. In addition, Consultant waives any right it may have or may obtain to subrogation for a claim against City. 3.9 Verification of Coverage. Prior to commencement of any work, Consultant shall furnish City with original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that 2017-11-07 Agenda Packet Page 161 5 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 Consultant has obtained the Required Insurance in compliance with the terms of this Agreement. The words “will endeavor” and “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives” or any similar language must be deleted from all certificates. The required certificates and endorsements should otherwise be on industry standard forms. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. 3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are required and are provided on a claims-made form, the following requirements also apply: a. The “Retro Date” must be shown, and must be before the date of this Agreement or the beginning of the work required by this Agreement. b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the work required by this Agreement. c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a “Retro Date” prior to the effective date of this Agreement, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the work required by this Agreement. d. A copy of the claims reporting requirements must be submitted to the City for review. 3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed to limit the Consultant’s obligations under this Agreement, including Indemnity. 3.12 Additional Coverage. To the extent that insurance coverage provided by Consultant maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher limits maintained. 4. INDEMNIFICATION 4.1. General. To the maximum extent allowed by law, Consultant shall protect, defend, indemnify and hold harmless City, its elected and appointed officers, agents, employees and volunteers (collectively, “Indemnified Parties”), from and against any and all claims, demands, causes of action, costs, expenses, (including reasonable attorneys’ fees and court costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Consultant, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Required Services, the results of such performance, or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the Indemnified Parties. 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 Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. 4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the forgoing, if the services provided under this Agreement are design professional services, as defined by 2017-11-07 Agenda Packet Page 162 6 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity obligation under Section 1, above, shall be limited to the extent required by California Civil Code section 2782.8. 4.3 Costs of Defense and Award. Included in Consultant’s obligations under this Section 4 is Consultant’s obligation to defend, at Consultant’s own cost, expense and risk, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties. Subject to the limitations in this Section 4, Consultant shall pay and satisfy any judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred by any of them. 4.4. Consultant’s Obligations Not Limited or Modified. Consultant’s obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent declaration by the Consultant. Furthermore, Consultant’s obligations under this Section 4 shall in no way limit, modify or excuse any of Consultant’s other obligations or duties under this Agreement. 4.5. Enforcement Costs. Consultant agrees to pay any and all costs City incurs in enforcing Consultant’s obligations under this Section 4. 4.6 Survival. Consultant’s obligations under this Section 4 shall survive the termination of this Agreement. 5. FINANCIAL INTERESTS OF CONSULTANT. 5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code require certain government officials and consultants performing work for government agencies to publicly disclose certain of their personal assets and income using a Statement of Economic Interests form (Form 700). In order to assure compliance with these requirements, Consultant shall comply with the disclosure requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference. 5.2 Disclosures; Prohibited Interests. Independent of whether Consultant is required to file a Form 700, Consultant warrants and represents that it has disclosed to City any economic interests held by Consultant, or its employees or subcontractors who will be performing the Required Services, in any real property or project which is the subject of this Agreement. Consultant warrants and represents that it has not employed or retained any company or person, other than a bona fide employee or approved subcontractor working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants and represents that it has not paid or agreed to pay any company or person, other than a bona fide employee or approved subcontractor working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further warrants and represents that no officer or employee of City, has any interest, whether contractual, non- contractual, financial or otherwise, in this transaction, the proceeds hereof, or in the business of Consultant or Consultant’s subcontractors. Consultant further agrees to notify City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties, City shall have the right to rescind this Agreement without liability. // // 2017-11-07 Agenda Packet Page 163 7 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 6. REMEDIES 6.1 Termination for Cause. If for any reason whatsoever Consultant shall fail to perform the Required Services under this Agreement, in a proper or timely manner, or if Consultant shall violate any of the other covenants, agreements or conditions of this Agreement (each a “Default”), in addition to any and all other rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to terminate this Agreement by giving five (5) days written notice to Consultant. Such notice shall identify the Default and the Agreement termination date. If Consultant notifies City of its intent to cure such Default prior to City’s specified termination date, and City agrees that the specified Default is capable of being cured, City may grant Consultant up to ten (10) additional days after the designated termination date to effectuate such cure. In the event of a termination under this Section 6.1, Consultant shall immediately provide City any and all ”Work Product” (defined in Section 7 below) prepared by Consultant as part of the Required Services. Such Work Product shall be City’s sole and exclusive property as provided in Section 7 hereof. Consultant may be entitled to compensation for work satisfactorily performed prior to Consultant’s receipt of the Default notice; provided, however, in no event shall such compensation exceed the amount that would have been payable under this Agreement for such work, and any such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of the Default. 6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement, or any portion of the Required Services, at any time and for any reason, with or without cause, by giving specific written notice to Consultant of such termination or suspension at least fifteen (15) days prior to the effective date thereof. Upon receipt of such notice, Consultant shall immediately cease all work under the Agreement and promptly deliver all “Work Product” (defined in Section 7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in Section 7 hereof. Consultant shall be entitled to receive just and equitable compensation for this Work Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily performed as of the date of the termination/suspension notice plus any additional remaining Required Services requested or approved by City in advance that would maximize City’s value under the Agreement. 6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this Section, Consultant hereby expressly waives any and all claims for damages or compensation as a result of such termination except as expressly provided in this Section 6. 6.4 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the provisions of which, including such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. 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. 6.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in San Diego County, State of California. 6.6 Service of Process. Consultant agrees that it is subject to personal jurisdiction in California. If Consultant is a foreign corporation, limited liability company, or partnership that is not registered with the California Secretary of State, Consultant irrevocably consents to service of process on Consultant by first 2017-11-07 Agenda Packet Page 164 8 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 class mail directed to the individual and address listed under “For Legal Notice,” in section 1.B. of Exhibit A to this Agreement, and that such service shall be effective five days after mailing. 7. OWNERSHIP AND USE OF WORK PRODUCT All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced in whole or in part under this Agreement in connection with the performance of the Required Services (collectively “Work Product”) shall be the sole and exclusive property of City. No such Work Product shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express, prior written consent of City. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such Work Product, without requiring any permission of Consultant, except as may be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws. With respect to computer files containing data generated as Work Product, Consultant shall make available to City, upon reasonable written request by City, the necessary functional computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 8. GENERAL PROVISIONS 8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties. 8.2 Assignment. City would not have entered into this Agreement but for Consultant’s unique qualifications and traits. Consultant shall not assign any of its rights or responsibilities under this Agreement, nor any part hereof, without City’s prior writ ten consent, which City may grant, condition or deny in its sole discretion. 8.3 Authority. The person(s) executing this Agreement for Consultant warrants and represents that they have the authority to execute same on behalf of Consultant and to bind Consultant to its obligations hereunder without any further action or direction from Consultant or any board, principle or officer thereof. 8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed such a counterpart. 8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein by reference. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 8.6 Record Retention. During the course of the Agreement and for three (3) years following completion of the Required Services, Consultant agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the performance of the Agreement, including accounting for costs and expenses charged to City, including such records in the possession of sub- contractors/sub-consultants. 8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties. 2017-11-07 Agenda Packet Page 165 9 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 8.8 Independent Contractor. Consultant is and shall at all times remain as to City a wholly independent contractor. Neither City nor any of its officers, employees, agents or volunteers shall have control over the conduct of Consultant or any of Consultant’s officers, employees, or agents (“Consultant Related Individuals”), except as set forth in this Agreement. No Consultant Related Individuals shall be deemed employees of City, and none of them shall be entitled to any benefits to which City employees are entitled, including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Furthermore, City will not withhold state or federal income tax, social security tax or any other payroll tax with respect to any Consultant Related Individuals; instead, Consultant shall be solely responsible for the payment of same and shall hold the City harmless with respect to same. Consultant shall not at any time or in any manner represent that it or any of its Consultant Related Individuals are employees or agents of City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner. 8.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in writing. (End of page. Next page is signature page.) 2017-11-07 Agenda Packet Page 166 2017-11-07 Agenda Packet Page 167 11 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 EXHIBIT A SCOPE OF WORK AND PAYMENT TERMS 1. Contact People for Contract Administration and Legal Notice A. City Contract Administration: Jonathan Salsman 1800 Maxwell Road, Chula Vista CA 91911 619-397-6115 Jsalsman@chulavistaca.gov For Legal Notice Copy to: City of Chula Vista City Attorney 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5037 CityAttorney@chulavistaca.gov B. Consultant Contract Administration: KLEINFELDER CONSTRUCTION SERVICES, INC. Alberto Gayon, Project Manager, 5761 Copley Drive, Ste. 100 San Diego CA 92111 619-373-3847 (Mobile) 858-223-8500 (Copley Office) AGayon@kleinfelder.com For Legal Notice Copy to: Hank Gentile, Principal In Charge 5761 Copley Drive, Ste. 100 San Diego CA 92111 858-705-0076 (Mobile) 858-223-8500 (Copley Office) hgentile@kleinfelder.com 2. Required Services A. General Description: Consultant shall provide civil infrastructure construction inspection and construction management consultant services at the direction and to the satisfaction of the City Engineer for City of Chula Vista construction projects. Services will vary with each Task Order ranging from complete construction project management and administration to inspection services or other associated construction management tasks depending on the needs of the City. Typical projects for which Consulting Services may be required include: Pavement Rehabilitation (Major and Minor), Storm Drain Construction and Rehabilitation, Sewer Construction and Rehabilitation, Sewage Pump station Construction and Rehabilitation, Traffic Signal Modifications, Street Widening Improvements, ADA Curb Ramp and Sidewalk Replacement, Signage and Striping, Stormwater Permanent BMP construction, and similar work. 2017-11-07 Agenda Packet Page 168 12 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 B. Detailed Description: 1. The number and scope of the projects and assignments for which consultant service are required will vary at the sole discretion of the City from year-to-year. 2. Consultant will provide civil infrastructure construction project management and administration, inspection services or other associated construction management services in response to the City's request for such services. Consultant acknowledges and agrees that service requests from the City under this Agreement will be on an “as-needed” and/or per project or assignment basis at the sole discretion of the City. Each project or assignment will include a not-to-exceed fee for all time, materials, and costs permitted to be incurred for that project or assignment. Consultant acknowledges and agrees that the City is not required to request any services from Consultant under this Agreement. Consultant acknowledges and agrees that it is not entitled to any compensation under this Agreement until such time that it has provided Required Services as explicitly authorized and approved by the City pursuant to the process identified herein. 3. Consultant will provide qualified inspectors, engineers and/or construction managers experienced in a wide variety of construction methods, project management, field inspection, traffic signal inspection, contract administration and other related duties. The City shall have the right to make a determination as to the qualifications of individual personnel and shall have the right to require substitution of personnel. 4. Consultant will submit billing forms and comply with all procedures acceptable to the City. Consultant shall provide separate invoices for each City project or assignment identified. Every invoice will list all work performed on project or assignment. Each invoice shall show total amount billed to date for project or assignment, payments received, and amount due. All work elements shall be itemized. Consultant shall only be paid for work done at the request of the City’s Project Manager. If additional work is requested by others, Consultant shall obtain a verbal written authorization from the Project Manager. The Consultant shall forfeit and will not receive payment for work performed and billed to City more than sixty (60) calendar days after performance of work the Required Services. 5. Consultant will coordinate through the City’s assigned Project Manager. The City’s Project Manager shall be the single point of contact for the City. The City shall reserve the right of refusing personnel assigned to a project or assignment by the Consultant. 6. Consultant will provide the following services as needed on each project or assignment: a. Supervise and inspect Contractor’s traffic control, detours, lane closures and staging plans. b. Conduct on-site monitoring and inspection of construction activities to insure contractor compliance with: all construction contract specifications, plans, and schedules; all NPDES General Construction and MS4 Stormwater permits & permit conditions. c. Conduct stormwater inspections, monitoring and reporting for pre-construction activities and post- construction Best Management Practices. d. Monitor contractor’s compliance with all federal, state and local safety rules and regulations. e. Conduct and/or participate in mandatory safety training. 2017-11-07 Agenda Packet Page 169 13 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 f. Prepare and submittal of daily reports of construction activities, including equipment and labor usage, description of work, location, progress, current issues. Reports shall be to the satisfaction of the City. g. Preparation and submittal of weekly statement of working days. h. Photo document the project site and construction activities prior, during and after completion of all work. i. Interpretation of contract specifications and plans as required. j. Coordination of City or consultant supplied surveying and testing services. k. Perform office tasks including, but not limited to: CPM schedule reviews; maintain project files (both paper and electronic); prepare project correspondence; prepare and maintain project fiscal records; and other duties as required relative to contract administration for the assignment. l. Verification of contractor prevailing wage payments and compliance with federal and state labor regulations. m. Calculation of quantities and preparation of payment estimates. n. Preparation of contract change orders and necessary supporting documents and forms. o. Review, investigate, and recommend action on submittals & requests for information. p. Coordination with utilities, state and local agencies, and the public. q. Analyze, investigate, and recommend action on potential claims, contract disputes, and claims. r. Preparation of final reports for the project. s. Preparation of complete and accurate as-built mark-up plans for use by the design engineer for preparation of Record Drawings. t. Compliance with Caltrans Local Assistant Program for federally funded projects u. Consultant will provide for their staff all vehicles, tools, safety equipment, computer equipment, software, consumables and accessories required for the work. 7. Work not listed in Schedule - If an occasion arises whereby the City requests work to be done which is not listed in this schedule, the price of providing this work shall be negotiated in good faith between the City and the Consultant. The negotiated price(s) shall not exceed the Schedule of Charges labeled as Exhibit DA1 to this Agreement between the City and Consultant. 3. Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin November 7, 2017 and end on November 7, 2019 for completion of all Required Services. 4. Compensation: A. Form of Compensation ☒ Time and Materials. For performance of the Required Services by Consultant as identified in Section 2.B., above, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of the Required Services, at the rates or amounts as indicated below: 2017-11-07 Agenda Packet Page 170 14 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 See Exhibit D for applicable Hourly Rates under this agreement. B. Reimbursement of Costs ☒ Invoiced or agreed-upon amounts as follows: For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: Initial Scope meeting No Cost In County Travel Time No Cost Reports, Original, Mylar No Cost Copies, Reproductions of Final Reports/Mylars Cost Plus 10% Outside Services Cost Plus 15% Delivery Cost Plus 10% Long Distance Telephone Charges No Cost Other Actual Identifiable City- Approved Direct Costs Cost Plus 10% Mileage - Office Personnel IRS Standard Mileage Rate Mileage - Field Personnel No Cost – All vehicle and mileage costs included in hourly rate Notwithstanding the foregoing, the maximum amount to be paid to the Consultant for services performed through November 7, 2019 shall not exceed $2,000,000.00. 5. Special Provisions: ☒ Permitted Sub-Consultants: List Permitted Sub-Consultants is found in Exhibit E. ☐ Security for Performance: “None” ☒ Notwithstanding the completion date set forth in Section 3 above, City has option to extend this Agreement for three (3) additional terms, defined as a one-year increment, (defined as November 8 to November 7) or until November 7, 2022. The City Manager or Director of Finance/Treasurer shall be authorized to exercise the extensions on behalf of the City. If the City exercises an option to extend, each extension shall be on the same terms and conditions contained herein, provided that the amounts specified in Section 4 above may be increased by up to three and a half percent (3.5%) for each extension. The City shall give written notice to Consultant of the City’s election to exercise the extension via the Notice of Exercise of Option to Extend document. ☒ Other: Consultant and each of its subconsultants/subcontractors will comply with the State of California’s prevailing wage rate requirements in accordance with California Labor Code, and all Federal, State, and local laws and ordinances applicable to persons employed by them for public works in a covered work classification. When payment of prevailing wages apply to the Required Services the wage rates and transportation and subsistence costs shall be reimbursed at the minimum rates set by the Department of Industrial Relations, State of California (DIR). The State’s prevailing wage rates determinations are available from the DIR home page at www.dir.ca.gov/oprl/. The City has ascertained that general prevailing wage rates may be applicable to all or a portion of the work to be performed for the Required Services. To verify compliance with State prevailing wage requirements, the DIR maintains an online registry of contractors to which Consultant and/or its 2017-11-07 Agenda Packet Page 171 15 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 subconsultants/subcontractors will be required to submit certified payrolls. Subject to the exceptions provided in the California Labor code, no Consultant or any of its subconsultants/subcontractors shall be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work unless currently registered with the DIR and qualified to perform public work pursuant to California Labor Code section 1725.5. When payment of prevailing wages applies to the Required Services, this Agreement becomes subject to compliance monitoring and enforcement by the DIR. Nothing contained above shall be construed to any way limit Consultant’s obligations to comply with all laws and regulations. 2017-11-07 Agenda Packet Page 172 16 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 EXHIBIT B INSURANCE REQUIREMENTS Consultant shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the following types and minimum amounts of insurance, as indicated by checking the applicable boxes (x). Type of Insurance Minimum Amount Form ☒ General Liability: Including products and completed operations, personal and advertising injury $2,000,000 per occurrence for bodily injury, personal injury (including death), and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this Agreement or the general aggregate limit must be twice the required occurrence limit Additional Insured Endorsement or Blanket AI Endorsement for City* Waiver of Recovery Endorsement Insurance Services Office Form CG 00 01 *Must be primary and must not exclude Products/Completed Operations ☒ Automobile Liability $1,000,000 per accident for bodily injury, including death, and property damage Insurance Services Office Form CA 00 01 Code 1-Any Auto Code 8-Hired Code 9-Non Owned ☒ Workers’ Compensation Employer’s Liability $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee Waiver of Recovery Endorsement ☒ Professional Liability (Errors & Omissions) $1,000,000 each occurrence $2,000,000 aggregate Other Negotiated Insurance Terms: NONE 2017-11-07 Agenda Packet Page 173 17 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 EXHIBIT C CONSULTANT CONFLICT OF INTEREST DESIGNATION The Political Reform Act1 and the Chula Vista Conflict of Interest Code2 (“Code”) require designated state and local government officials, including some consultants, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, consultants designated to file the Form 700 are also required to comply with certain ethics training requirements.3 ☒ A. Consultant IS a corporation or limited liability company and is therefore EXCLUDED4 from disclosure. ☐ B. Consultant NOT a corporation or limited liability company and disclosure designation is as follows: APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES (Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.) Name Email Address Applicable Designation Enter Name of Each Individual Who Will Be Providing Service Under the Contract – If individuals have different disclosure requirements, duplicate this row and complete separately for each individual Enter email address(es) ☐ A. Full Disclosure ☐ B. Limited Disclosure (select one or more of the categories under which the consultant shall file): ☐ 1. ☐ 2. ☐ 3. ☐ 4. ☐ 5. ☐ 6. ☐ 7. Justification: ☐ C. Excluded from Disclosure 1. Required Filers Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Consultant,” pursuant to FPPC Regulation 18700.3, must file a Form 700. 2. Required Filing Deadlines Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement. 3. Filing Designation The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Consultant will provide. Notwithstanding this designation or anything in the Agreement, the Consultant is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1- 866-ASK-FPPC, or (866) 275-3772 *2. Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written determination of the consultant’s requirement to comply with the disclosure requirements set forth in the Code. Completed by: Jonathan Salsman 1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704. 2 Chula Vista Municipal Code §§2.02.010-2.02.040. 3 Cal. Gov. Code §§53234, et seq. 4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261; FPPC Reg. 18700.3 (Consultant defined as an “individual” who participates in making a governmental decision; “individual” does not incl ude corporation or limited liability company). 2017-11-07 Agenda Packet Page 174 18 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 EXHIBIT D RATE SCHEDULE KLEINFELDER | SIMON WONG ENGINEERING PERSONNEL NON PREVAILING WAGE BILLING RATE PREVAILING WAGE BILLING RATE CERTIFIED ARBORIST $125/HR $165/HR 2017-11-07 Agenda Packet Page 175 19 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 ARCADIS CA WEHSENER CASC 2017-11-07 Agenda Packet Page 176 20 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 GONZALES-WHITE TOWILL 2017-11-07 Agenda Packet Page 177 21 City of Chula Vista Agreement No.: 17133 Consultant Name: Kleinfelder Construction Services, Inc. Rev. 05/30/17 EXHIBIT E LIST OF SUBCONSULTANTS Subconsultant Role Contact Information ARCADIS WASTEWATER CONSTRUCTION MANAGEMENT AND INSPECTION NABIL FRAYWAT ARCADIS U.S., INC. 3600 LIME STREET, SUITE 527 RIVERSIDE, CA, 92501 T: 9094633604 M: 7147205095 NABIL.FRAYWAT@ARCADIS- US.COM CA WEHSENER ELECTRICAL CONSTRUCTION MANAGEMENT, INSPECTION, AND ENGINEERING CHUCK WEHSENER C.A. WEHSENER ENGINEERING, INC.|2307 FENTON PARKWAY #107-119|SAN DIEGO, CA. 92108 619-929-9529 CHUCK@CAWEHSENERENG.COM CASC STORM WATER/NPDES COMPLIANCE ERNIE D. MANSFIELD CASC ENGINEERING AND CONSULTING, INC. | 633 WEST ROUTE 66, SUITE A, GLENDORA, CA 91740 818.618.5481 EMANSFIELD@CASCINC.COM GONZALES-WHITE LABOR COMPLIANCE TERESA GONZALEZ-WHITE GONZALEZ-WHITE CONSULTING SERVICES |3439 VIA BELTRAN |SAN DIEGO, CA 92117 619-518-1821 TGWHITE@SPRINTMAIL.COM TOWILL SURVEYING LISA HENSTRIDGE TOWILL, INC. 2300 CLAYTON ROAD, SUITE 1200 CONCORD, CALIFORNIA, 94520 909.303.7960, EXT. 1701, C 714.309.2041 LISA.HENSTRIDGE@TOWILL.COM 2017-11-07 Agenda Packet Page 178 2017-11-07 Agenda Packet Page 179 2017-11-07 Agenda Packet Page 180 2017-11-07 Agenda Packet Page 181 2017-11-07 Agenda Packet Page 182 2017-11-07 Agenda Packet Page 183 2017-11-07 Agenda Packet Page 184 2017-11-07 Agenda Packet Page 185 2017-11-07 Agenda Packet Page 186 2017-11-07 Agenda Packet Page 187 2017-11-07 Agenda Packet Page 188 2017-11-07 Agenda Packet Page 189 2017-11-07 Agenda Packet Page 190 2017-11-07 Agenda Packet Page 191 2017-11-07 Agenda Packet Page 192 2017-11-07 Agenda Packet Page 193 2017-11-07 Agenda Packet Page 194 2017-11-07 Agenda Packet Page 195 2017-11-07 Agenda Packet Page 196 2017-11-07 Agenda Packet Page 197 2017-11-07 Agenda Packet Page 198 1 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 CITY OF CHULA VISTA CONSULTANT SERVICES AGREEMENT WITH PROJECT PROFESSIONALS CORPORATION TO PROVIDE ON-CALL CIP CONSTRUCTION MANAGEMENT CONSULTING SERVICES This Agreement is entered into effective as of November 7, 2017 (“Effective Date”) by and between the City of Chula Vista, a chartered municipal corporation (“City”) and Project Professionals Corporation, a California Corporation (“Consultant”) (collectively, the “Parties” and, individually, a “Party”) with reference to the following facts: RECITALS WHEREAS, the City desires to procure qualified civil infrastructure construction inspection and construction management consultant services to assist the City’s engineering staff due to the current number and pace of Capital Improvement Program projects and the proposed large infrastructure effort associated with the recently voter approved Measure P in Chula Vista; and WHEREAS, On August 4, 2017, the City issued a Request for Qualifications (RFQ) for On-Call CIP Construction Management Consulting Services; and WHEREAS, the City of Chula Vista received nine (9) proposals from firms interested in providing On- Call CIP Construction Management Consulting services; and, WHEREAS, after the City completed its review of the proposals five (5) firms were selected for interviews, which were conducted on September 20, 2017; and, WHEREAS, after the interview process for all five (5) firms, the consultant selection committee determined Consultant as one of three best qualified firms to provide the services described in the Agreement; and, WHEREAS, the consultant selection process has been conducted in accordance with Section 2.56.110.C of the Chula Vista Municipal Code; and WHEREAS, Consultant warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Consultant to City in accordance with the time frames and the terms and conditions of this Agreement. [End of Recitals. Next Page Starts Obligatory Provisions.] 2017-11-07 Agenda Packet Page 199 2 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 OBLIGATORY PROVISIONS NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and Consultant hereby agree as follows: 1. SERVICES 1.1 Required Services. Consultant agrees to perform the services, and deliver to City the “Deliverables” (if any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the time frames set forth therein, time being of the essence for this Agreement. The services and/or Deliverables described in Exhibit A shall be referred to herein as the “Required Services.” 1.2 Reductions in Scope of Work. City may independently, or upon request from Consultant, from time to time, reduce the Required Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction. 1.3 Additional Services. Subject to compliance with the City’s Charter, codes, policies, procedures and ordinances governing procurement and purchasing authority, City may request Consultant provide additional services related to the Required Services (“Additional Services”). If so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the Additional Services shall be charged and paid consistent with the rates and terms already provided therein. Once added to Exhibit A, “Additional Services” shall also become “Required Services” for purposes of this Agreement. 1.4 Standard of Care. Consultant expressly warrants and agrees that any and all Required Services hereunder shall be performed in accordance with the highest standard of care exercised by members of the profession currently practicing under similar conditions and in similar locations. 1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Consultant of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Consultant or its subcontractors. 1.6 Security for Performance. In the event that Exhibit A Section 4 indicates the need for Consultant to provide additional security for performance of its duties under this Agreement, Consultant shall provide such additional security prior to commencement of its Required Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by the City Attorney. 1.7 Compliance with Laws. In its performance of the Required Services, Consultant shall comply with any and all applicable federal, state and local laws, including the Chula Vista Municipal Code. 1.8 Business License. Prior to commencement of work, Consultant shall obtain a business license from City. 1.9 Subcontractors. Prior to commencement of any work, Consultant shall submit for City’s information and approval a list of any and all subcontractors to be used by Consultant in the performance of the Required Services. Consultant agrees to take appropriate measures necessary to ensure that all 2017-11-07 Agenda Packet Page 200 3 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 subcontractors and personnel utilized by the Consultant to complete its obligations under this Agreement comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In addition, if any subcontractor is expected to fulfill any responsibilities of the Consultant under this Agreement, Consultant shall ensure that each and every subcontractor carries out the Consultant’s responsibilities as set forth in this Agreement. 1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date or Consultant’s commencement of the Required Services hereunder, and shall terminate when the Parties have complied with all their obligations hereunder; provided, however, provisions which expressly survive termination shall remain in effect. 2. COMPENSATION 2.1 General. For satisfactory performance of the Required Services, City agrees to compensate Consultant in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment are set forth in this Section 2. 2.2 Detailed Invoicing. Consultant agrees to provide City with a detailed invoice for services performed each month, within thirty (30) days of the end of the month in which the services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date of the Agreement. All charges must be presented in a line item format with each task separately explained in reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced to date, and the remaining amount available under any approved budget. Consultant must obtain prior written authorization from City for any fees or expenses that exceed the estimated budget. 2.3 Payment to Consultant. Upon receipt of a properly prepared invoice and confirmation that the Required Services detailed in the invoice have been satisfactorily performed, City shall pay Consultant for the invoice amount within thirty (30) days. Payment shall be made in accordance with the terms and conditions set forth in Exhibit A and section 2.4, below. At City’s discretion, invoices not timely submitted may be subject to a penalty of up to five percent (5%) of the amount invoiced. 2.4 Retention Policy. City shall retain ten percent (10%) of the amount due for Required Services detailed on each invoice (the “holdback amount”). Upon City review and determination of Project Completion, the holdback amount will be issued to Consultant. 2.5 Reimbursement of Costs. City may reimburse Consultant’s out-of-pocket costs incurred by Consultant in the performance of the Required Services if negotiated in advance and included in Exhibit A. Unless specifically provided in Exhibit A, Consultant shall be responsible for any and all out-of-pocket costs incurred by Consultant in the performance of the Required Services. 2.6 Exclusions. City shall not be responsible for payment to Consultant for any fees or costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City shall also not be responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of Consultant, its agents, employees, or subcontractors. 2.7 Payment Not Final Approval. Consultant understands and agrees that payment to the Consultant or reimbursement for any Consultant costs related to the performance of Required Services does not constitute a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for 2017-11-07 Agenda Packet Page 201 4 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 payment under this Agreement, nor does it constitute a waiver of any violation by Consultant of the terms of this Agreement. If City determines that Consultant is not entitled to receive any amount of compensation already paid, City will notify Consultant in writing and Consultant shall promptly return such amount. 3. INSURANCE 3.1 Required Insurance. Consultant must procure and maintain, during the period of performance of Required Services under this Agreement, and for twelve months after completion of Required Services, the policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this reference (the “Required Insurance”). The Required Insurance shall also comply with all other terms of this Section. 3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions relating to the Required Insurance must be disclosed to and approved by City in advance of the commencement of work. 3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact business in the State of California with a current A.M. Best’s rating of A V or better, or, if insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best’s rating of no less than A X. For Workers’ Compensation Insurance, insurance issued by the State Compensation Fund is also acceptable. 3.4 Subcontractors. Consultant must include all sub-consultants/sub-contractors as insureds under its policies and/or furnish separate certificates and endorsements demonstrating separate coverage for those not under its policies. Any separate coverage for sub-consultants must also comply with the terms of this Agreement. 3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified as required in Exhibit B or as may otherwise be specified by City’s Risk Manager.. The general liability additional insured coverage must be provided in the form of an endorsement to the Consultant’s insurance using ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude Products/Completed Operations coverage. 3.6 General Liability Coverage to be “Primary.” Consultant’s general liability coverage must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance provided by Consultant and in no way relieves Consultant from its responsibility to provide insurance. 3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required insured period under this Agreement, except after thirty days’ prior written notice to the City by certified mail, return receipt requested. Prior to the effective date of any such cancellation Consultant must procure and put into effect equivalent coverage(s). 3.8 Waiver of Subrogation. Consultant’s insurer(s) will provide a Waiver of Subrogation in favor of the City for each Required Insurance policy under this Agreement. In addition, Consultant waives any right it may have or may obtain to subrogation for a claim against City. 3.9 Verification of Coverage. Prior to commencement of any work, Consultant shall furnish City with original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that 2017-11-07 Agenda Packet Page 202 5 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 Consultant has obtained the Required Insurance in compliance with the terms of this Agreement. The words “will endeavor” and “but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents, or representatives” or any similar language must be deleted from all certificates. The required certificates and endorsements should otherwise be on industry standard forms. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. 3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are required and are provided on a claims-made form, the following requirements also apply: a. The “Retro Date” must be shown, and must be before the date of this Agreement or the beginning of the work required by this Agreement. b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the work required by this Agreement. c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a “Retro Date” prior to the effective date of this Agreement, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of the work required by this Agreement. d. A copy of the claims reporting requirements must be submitted to the City for review. 3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed to limit the Consultant’s obligations under this Agreement, including Indemnity. 3.12 Additional Coverage. To the extent that insurance coverage provided by Consultant maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher limits maintained. 4. INDEMNIFICATION 4.1. General. To the maximum extent allowed by law, Consultant shall protect, defend, indemnify and hold harmless City, its elected and appointed officers, agents, employees and volunteers (collectively, “Indemnified Parties”), from and against any and all claims, demands, causes of action, costs, expenses, (including reasonable attorneys’ fees and court costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Consultant, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Required Services, the results of such performance, or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the Indemnified Parties. 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 Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. 4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the forgoing, if the services provided under this Agreement are design professional services, as defined by 2017-11-07 Agenda Packet Page 203 6 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity obligation under Section 1, above, shall be limited to the extent required by California Civil Code section 2782.8. 4.3 Costs of Defense and Award. Included in Consultant’s obligations under this Section 4 is Consultant’s obligation to defend, at Consultant’s own cost, expense and risk, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties. Subject to the limitations in this Section 4, Consultant shall pay and satisfy any judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred by any of them. 4.4. Consultant’s Obligations Not Limited or Modified. Consultant’s obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent declaration by the Consultant. Furthermore, Consultant’s obligations under this Section 4 shall in no way limit, modify or excuse any of Consultant’s other obligations or duties under this Agreement. 4.5. Enforcement Costs. Consultant agrees to pay any and all costs City incurs in enforcing Consultant’s obligations under this Section 4. 4.6 Survival. Consultant’s obligations under this Section 4 shall survive the termination of this Agreement. 5. FINANCIAL INTERESTS OF CONSULTANT. 5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code require certain government officials and consultants performing work for government agencies to publicly disclose certain of their personal assets and income using a Statement of Economic Interests form (Form 700). In order to assure compliance with these requirements, Consultant shall comply with the disclosure requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference. 5.2 Disclosures; Prohibited Interests. Independent of whether Consultant is required to file a Form 700, Consultant warrants and represents that it has disclosed to City any economic interests held by Consultant, or its employees or subcontractors who will be performing the Required Services, in any real property or project which is the subject of this Agreement. Consultant warrants and represents that it has not employed or retained any company or person, other than a bona fide employee or approved subcontractor working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants and represents that it has not paid or agreed to pay any company or person, other than a bona fide employee or approved subcontractor working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further warrants and represents that no officer or employee of City, has any interest, whether contractual, non- contractual, financial or otherwise, in this transaction, the proceeds hereof, or in the business of Consultant or Consultant’s subcontractors. Consultant further agrees to notify City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties, City shall have the right to rescind this Agreement without liability. // // 2017-11-07 Agenda Packet Page 204 7 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 6. REMEDIES 6.1 Termination for Cause. If for any reason whatsoever Consultant shall fail to perform the Required Services under this Agreement, in a proper or timely manner, or if Consultant shall violate any of the other covenants, agreements or conditions of this Agreement (each a “Default”), in addition to any and all other rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to terminate this Agreement by giving five (5) days written notice to Consultant. Such notice shall identify the Default and the Agreement termination date. If Consultant notifies City of its intent to cure such Default prior to City’s specified termination date, and City agrees that the specified Default is capable of being cured, City may grant Consultant up to ten (10) additional days after the designated termination date to effectuate such cure. In the event of a termination under this Section 6.1, Consultant shall immediately provide City any and all ”Work Product” (defined in Section 7 below) prepared by Consultant as part of the Required Services. Such Work Product shall be City’s sole and exclusive property as provided in Section 7 hereof. Consultant may be entitled to compensation for work satisfactorily performed prior to Consultant’s receipt of the Default notice; provided, however, in no event shall such compensation exceed the amount that would have been payable under this Agreement for such work, and any such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of the Default. 6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement, or any portion of the Required Services, at any time and for any reason, with or without cause, by giving specific written notice to Consultant of such termination or suspension at least fifteen (15) days prior to the effective date thereof. Upon receipt of such notice, Consultant shall immediately cease all work under the Agreement and promptly deliver all “Work Product” (defined in Section 7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in Section 7 hereof. Consultant shall be entitled to receive just and equitable compensation for this Work Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily performed as of the date of the termination/suspension notice plus any additional remaining Required Services requested or approved by City in advance that would maximize City’s value under the Agreement. 6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this Section, Consultant hereby expressly waives any and all claims for damages or compensation as a result of such termination except as expressly provided in this Section 6. 6.4 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the provisions of which, including such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. 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. 6.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in San Diego County, State of California. 6.6 Service of Process. Consultant agrees that it is subject to personal jurisdiction in California. If Consultant is a foreign corporation, limited liability company, or partnership that is not registered with the California Secretary of State, Consultant irrevocably consents to service of process on Consultant by first 2017-11-07 Agenda Packet Page 205 8 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 class mail directed to the individual and address listed under “For Legal Notice,” in section 1.B. of Exhibit A to this Agreement, and that such service shall be effective five days after mailing. 7. OWNERSHIP AND USE OF WORK PRODUCT All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced in whole or in part under this Agreement in connection with the performance of the Required Services (collectivel y “Work Product”) shall be the sole and exclusive property of City. No such Work Product shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express, prior written consent of City. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such Work Product, without requiring any permission of Consultant, except as may be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws. With respect to computer files containing data generated as Work Product, Consultant shall make available to City, upon reasonable written request by City, the necessary functional computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 8. GENERAL PROVISIONS 8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties. 8.2 Assignment. City would not have entered into this Agreement but for Consultant’s unique qualifications and traits. Consultant shall not assign any of its rights or responsibilities under this Agreement, nor any part hereof, without City’s prior written consent, which City may grant, condition or deny in its sole discretion. 8.3 Authority. The person(s) executing this Agreement for Consultant warrants and represents that they have the authority to execute same on behalf of Consultant and to bind Consultant to its obligations hereunder without any further action or direction from Consultant or any board, principle or officer thereof. 8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed such a counterpart. 8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein by reference. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 8.6 Record Retention. During the course of the Agreement and for three (3) years following completion of the Required Services, Consultant agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the performance of the Agreement, including accounting for costs and expenses charged to City, including such records in the possession of sub- contractors/sub-consultants. 8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties. 2017-11-07 Agenda Packet Page 206 9 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 8.8 Independent Contractor. Consultant is and shall at all times remain as to City a wholly independent contractor. Neither City nor any of its officers, employees, agents or volunteers shall have control over the conduct of Consultant or any of Consultant’s officers, employees, or agents (“Consultant Related Individuals”), except as set forth in this Agreement. No Consultant Related Individuals shall be deemed employees of City, and none of them shall be entitled to any benefits to which City employees are entitled, including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Furthermore, City will not withhold state or federal income tax, social security tax or any other payroll tax with respect to any Consultant Related Individuals; instead, Consultant shall be solely responsible for the payment of same and shall hold the City harmless with respect to same. Consultant shall not at any time or in any manner represent that it or any of its Consultant Related Individuals are employees or agents of City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner. 8.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in writing. (End of page. Next page is signature page.) 2017-11-07 Agenda Packet Page 207 2017-11-07 Agenda PacketPage 208 11 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 EXHIBIT A SCOPE OF WORK AND PAYMENT TERMS 1. Contact People for Contract Administration and Legal Notice A. City Contract Administration: Jonathan Salsman 1800 Maxwell Road, Chula Vista CA 91911 619-397-6115 Jsalsman@chulavistaca.gov For Legal Notice Copy to: City of Chula Vista City Attorney 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5037 CityAttorney@chulavistaca.gov B. Consultant Contract Administration: PROJECT PROFESSIONALS CORPORATION 4499 Ruffin Road, Suite 250, San Diego, CA 92123 Office: (858) 634-8180, Fax: (858) 634-8184, Cell: (619) 244-3418 byron@ppc-sd.com For Legal Notice Copy to: Byron S. Wade, President/CEO 4499 Ruffin Road, Suite 250, San Diego, CA 92123 Office: (858) 634-8180, Fax: (858) 634-8184, Cell: (619) 244-3418 byron@ppc-sd.com 2. Required Services A. General Description: Consultant shall provide civil infrastructure construction inspection and construction management consultant services at the direction and to the satisfaction of the City Engineer for City of Chula Vista construction projects. Services will vary with each Task Order ranging from complete construction project management and administration to inspection services or other associated construction management tasks depending on the needs of the City. Typical projects for which Consulting Services may be required include: Pavement Rehabilitation (Major and Minor), Storm Drain Construction and Rehabilitation, Sewer Construction and Rehabilitation, Sewage Pump station Construction and Rehabilitation, Traffic Signal Modifications, Street Widening Improvements, ADA Curb Ramp and Sidewalk Replacement, Signage and Striping, Stormwater Permanent BMP construction, and similar work. 2017-11-07 Agenda Packet Page 209 12 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 B. Detailed Description: 1. The number and scope of the projects and assignments for which consultant service are required will vary at the sole discretion of the City from year-to-year. 2. Consultant will provide civil infrastructure construction project management and administration, inspection services or other associated construction management services in response to the City's request for such services. Consultant acknowledges and agrees that service requests from the City under this Agreement will be on an “as-needed” and/or per project or assignment basis at the sole discretion of the City. Each project or assignment will include a not-to-exceed fee for all time, materials, and costs permitted to be incurred for that project or assignment. Consultant acknowledges and agrees that the City is not required to request any services from Consultant under this Agreement. Consultant acknowledges and agrees that it is not entitled to any compensation under this Agreement until such time that it has provided Required Services as explicitly authorized and approved by the City pursuant to the process identified herein. 3. Consultant will provide qualified inspectors, engineers and/or construction managers experienced in a wide variety of construction methods, project management, field inspection, traffic signal inspection, contract administration and other related duties. The City shall have the right to make a determination as to the qualifications of individual personnel and shall have the right to require substitution of personnel. 4. Consultant will submit billing forms and comply with all procedures acceptable to the City. Consultant shall provide separate invoices for each City project or assignment identified. Every invoice will list all work performed on project or assignment. Each invoice shall show total amount billed to date for project or assignment, payments received, and amount due. All work elements shall be itemized. Consultant shall only be paid for work done at the request of the City’s Project Manager. If additional work is requested by others, Consultant shall obtain a verbal written authorization from the Project Manager. The Consultant shall forfeit and will not receive payment for work performed and billed to City more than sixty (60) calendar days after performance of work the Required Services. 5. Consultant will coordinate through the City’s assigned Project Manager. The City’s Project Manager shall be the single point of contact for the City. The City shall reserve the right of refusing personnel assigned to a project or assignment by the Consultant. 6. Consultant will provide the following services as needed on each project or assignment: a. Supervise and inspect Contractor’s traffic control, detours, lane closures and staging plans. b. Conduct on-site monitoring and inspection of construction activities to insure contractor compliance with: all construction contract specifications, plans, and schedules; all NPDES General Construction and MS4 Stormwater permits & permit conditions. c. Conduct stormwater inspections, monitoring and reporting for pre-construction activities and post- construction Best Management Practices. d. Monitor contractor’s compliance with all federal, state and local safety rules and regulations. e. Conduct and/or participate in mandatory safety training. 2017-11-07 Agenda Packet Page 210 13 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 f. Prepare and submittal of daily reports of construction activities, including equipment and labor usage, description of work, location, progress, current issues. Reports shall be to the satisfaction of the City. g. Preparation and submittal of weekly statement of working days. h. Photo document the project site and construction activities prior, during and after completion of all work. i. Interpretation of contract specifications and plans as required. j. Coordination of City or consultant supplied surveying and testing services. k. Perform office tasks including, but not limited to: CPM schedule reviews; maintain project files (both paper and electronic); prepare project correspondence; prepare and maintain project fiscal records; and other duties as required relative to contract administration for the assignment. l. Verification of contractor prevailing wage payments and compliance with federal and state labor regulations. m. Calculation of quantities and preparation of payment estimates. n. Preparation of contract change orders and necessary supporting documents and forms. o. Review, investigate, and recommend action on submittals & requests for information. p. Coordination with utilities, state and local agencies, and the public. q. Analyze, investigate, and recommend action on potential claims, contract disputes, and claims. r. Preparation of final reports for the project. s. Preparation of complete and accurate as-built mark-up plans for use by the design engineer for preparation of Record Drawings. t. Compliance with Caltrans Local Assistant Program for federally funded projects u. Consultant will provide for their staff all vehicles, tools, safety equipment, computer equipment, software, consumables and accessories required for the work. 7. Work not listed in Schedule - If an occasion arises whereby the City requests work to be done which is not listed in this schedule, the price of providing this work shall be negotiated in good faith between the City and the Consultant. The negotiated price(s) shall not exceed the Schedule of Charges labeled as Exhibit DA1 to this Agreement between the City and Consultant. 3. Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin November 7, 2017 and end on November 7, 2019 for completion of all Required Services. 4. Compensation: A. Form of Compensation ☒ Time and Materials. For performance of the Required Services by Consultant as identified in Section 2.B., above, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of the Required Services, at the rates or amounts as indicated below: See Exhibit D for applicable Hourly Rates under this agreement. 2017-11-07 Agenda Packet Page 211 14 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 B. Reimbursement of Costs ☒ Invoiced or agreed-upon amounts as follows: For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: Initial Scope meeting No Cost In County Travel Time No Cost Reports, Original, Mylar No Cost Copies, Reproductions of Final Reports/Mylars Cost Plus 10% Outside Services Cost Plus 15% Delivery Cost Plus 10% Long Distance Telephone Charges No Cost Other Actual Identifiable City- Approved Direct Costs Cost Plus 10% Mileage - Office Personnel IRS Standard Mileage Rate Mileage - Field Personnel No Cost – All vehicle and mileage costs included in hourly rate Notwithstanding the foregoing, the maximum amount to be paid to the Consultant for services performed through November 7, 2019 shall not exceed $2,000,000.00. 5. Special Provisions: ☒ Permitted Sub-Consultants: List Permitted Sub-Consultants is found in Exhibit E. ☐ Security for Performance: “None” ☒ Notwithstanding the completion date set forth in Section 3 above, City has option to extend this Agreement for three (3) additional terms, defined as a one-year increment, (defined as November 8 to November 7) or until November 7, 2022. The City Manager or Director of Finance/Treasurer shall be authorized to exercise the extensions on behalf of the City. If the City exercises an option to extend, each extension shall be on the same terms and conditions contained herein, provided that the amounts specified in Section 4 above may be increased by up to three and a half percent (3.5%) for each extension. The City shall give written notice to Consultant of the City’s election to exercise the extension via the Notice of Exercise of Option to Extend document. ☒ Other: Consultant and each of its subconsultants/subcontractors will comply with the State of California’s prevailing wage rate requirements in accordance with California Labor Code, and all Federal, State, and local laws and ordinances applicable to persons employed by them for public works in a covered work classification. When payment of prevailing wages apply to the Required Services the wage rates and transportation and subsistence costs shall be reimbursed at the minimum rates set by the Department of Industrial Relations, State of California (DIR). The State’s prevailing wage rates determinations are available from the DIR home page at www.dir.ca.gov/oprl/. The City has ascertained that general prevailing wage rates may be applicable to all or a portion of the work to be performed for the Required Services. To verify compliance with State prevailing wage requirements, the DIR maintains an online registry of contractors to which Consultant and/or its 2017-11-07 Agenda Packet Page 212 15 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 subconsultants/subcontractors will be required to submit certified payrolls. Subject to the exceptions provided in the California Labor code, no Consultant or any of its subconsultants/subcontractors shall be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work unless currently registered with the DIR and qualified to perform public work pursuant to California Labor Code section 1725.5. When payment of prevailing wages applies to the Required Services, this Agreement becomes subject to compliance monitoring and enforcement by the DIR. Nothing contained above shall be construed to any way limit Consultant’s obligations to comply with all laws and regulations. 2017-11-07 Agenda Packet Page 213 16 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 EXHIBIT B INSURANCE REQUIREMENTS Consultant shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the following types and minimum amounts of insurance, as indicated by checking the applicable boxes (x). Type of Insurance Minimum Amount Form ☒ General Liability: Including products and completed operations, personal and advertising injury $2,000,000 per occurrence for bodily injury, personal injury (including death), and property damage. If Commercial General Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this Agreement or the general aggregate limit must be twice the required occurrence limit Additional Insured Endorsement or Blanket AI Endorsement for City* Waiver of Recovery Endorsement Insurance Services Office Form CG 00 01 *Must be primary and must not exclude Products/Completed Operations ☒ Automobile Liability $1,000,000 per accident for bodily injury, including death, and property damage Insurance Services Office Form CA 00 01 Code 1-Any Auto Code 8-Hired Code 9-Non Owned ☒ Workers’ Compensation Employer’s Liability $1,000,000 each accident $1,000,000 disease policy limit $1,000,000 disease each employee Waiver of Recovery Endorsement ☒ Professional Liability (Errors & Omissions) $1,000,000 each occurrence $2,000,000 aggregate Other Negotiated Insurance Terms: NONE 2017-11-07 Agenda Packet Page 214 17 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 EXHIBIT C CONSULTANT CONFLICT OF INTEREST DESIGNATION The Political Reform Act1 and the Chula Vista Conflict of Interest Code2 (“Code”) require designated state and local government officials, including some consultants, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, consultants designated to file the Form 700 are also required to comply with certain ethics training requirements.3 ☒ A. Consultant IS a corporation or limited liability company and is therefore EXCLUDED4 from disclosure. ☐ B. Consultant NOT a corporation or limited liability company and disclosure designation is as follows: APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES (Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.) Name Email Address Applicable Designation Enter Name of Each Individual Who Will Be Providing Service Under the Contract – If individuals have different disclosure requirements, duplicate this row and complete separately for each individual Enter email address(es) ☐ A. Full Disclosure ☐ B. Limited Disclosure (select one or more of the categories under which the consultant shall file): ☐ 1. ☐ 2. ☐ 3. ☐ 4. ☐ 5. ☐ 6. ☐ 7. Justification: ☐ C. Excluded from Disclosure 1. Required Filers Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Consultant,” pursuant to FPPC Regulation 18700.3, must file a Form 700. 2. Required Filing Deadlines Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement. 3. Filing Designation The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Consultant will provide. Notwithstanding this designation or anything in the Agreement, the Consultant is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1- 866-ASK-FPPC, or (866) 275-3772 *2. Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written determination of the consultant’s requirement to comply with the disclosure requirements set forth in the Code. Completed by: Jonathan Salsman 1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704. 2 Chula Vista Municipal Code §§2.02.010-2.02.040. 3 Cal. Gov. Code §§53234, et seq. 4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261; FPPC Reg. 18700.3 (Consultant defined as an “individual” who participates in making a governmental decision; “individual” does not incl ude corporation or limited liability company). 2017-11-07 Agenda Packet Page 215 18 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 EXHIBIT D RATE SCHEDULE PROJECT PROFESSIONALS CORPORATION 2017-11-07 Agenda Packet Page 216 19 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 D-MAX ENGINEERING, INC. 2017-11-07 Agenda Packet Page 217 20 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 STC TRAFFIC TED SAFFORD & SON, ARBORISTS PERSONNEL PREVAILING WAGE BILLING RATE CERTIFIED ARBORIST $165/HR 2017-11-07 Agenda Packet Page 218 21 City of Chula Vista Agreement No.: 17132 Consultant Name: Project Professionals Corporation Rev. 05/30/17 EXHIBIT E LIST OF SUBCONSULTANTS Subconsultant Role Contact Information D-MAX ENGINEERING, INC. Stormwater & Environmental Arsalan Dadkhah Ph.D., P.E. 7220 Trade Street, Suite 119 San Diego, California 92121 858.586.6600 ext 22 arsalan@dmaxinc.com STC TRAFFIC Traffic Engineering and Signals Jason Stack, President 5865 Avenida Encinitas, Suite 142-B Carlsbad, CA 92008 714-315-4640 jason.stack@stacktraffic.com TED SAFFORD & SON, ARBORISTS Arborist Ted Safford, Arborist 4320 Vallejo Avenue San Diego, CA 92117 858-272-1566 info@tedsaffordarborist.com 2017-11-07 Agenda Packet Page 219 City of Chula Vista Staff Report File#:17-0439, Item#: 8. FISCAL YEAR 2016/2017 ANNUAL FINANCIAL STATUS REPORT RECOMMENDED ACTION Council accept the report. SUMMARY This report is provided to meet the City Charter requirement of publishing the City’s Combined Statement of Revenues, Expenditures and Changes in Fund Equity (Schedule D) in the local newspaper within 120 days of the close of the fiscal year. The statement was published in the October 27 th issue of The Star News, which is the City’s adjudicated newspaper of general circulation. 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 the activity consists of a governmental fiscal/administrative activity which does 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 N/A DISCUSSION Annual Financial Status Report This report is provided to meet the City Charter Section 504 (f) requirement of publishing the City’s Combined Statement of Revenues, Expenditures and Changes in Fund Equity (Schedule D) in the local newspaper within 120 days of the close of the fiscal year. The statement was published in the October 27 th issue of The Star News, which is the City’s adjudicated newspaper of general circulation. City Council was initially notified of the publication via memorandum on October 23, 2016, which is attached as Attachment 6. We will provide the Council with a complete report of fiscal year 2016/17 financial data upon City of Chula Vista Printed on 11/1/2017Page 1 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 220 File#:17-0439, Item#: 8. presentation of the City’s audited Comprehensive Annual Financial Report. For the General Funds, actual Expenditures and Transfers-Out for the year amounted to $157.8 million, supported by Actual Revenues and Transfers-In of $161.7 million. The actual revenue and expenditures are subject to audit adjustments. The audited figures and the actual change in General Fund reserves will be presented when the audit is completed. Schedules A and B are summary statements of actual revenues and expenditures for fiscal year 2016/17. Please note that the row titled “Total Other General Funds” includes the Measure P Fund, Fire Equipment Lease Fund, the Legislative Council Fund, and the Public Liability Fund, which are combined with the General Fund for financial reporting purposes. Schedule C provides a complete listing of all budget amendments approved for the 2016/17 fiscal year. Schedule D is an unaudited Summary Report of Revenue, Expenditures, and Changes in Fund Equity (excluding Trust Funds and the Public Financing Authority) for the fiscal year ended June 30, 2017. Consistent with the reference in the preceding paragraph, the column titled “General Funds” includes not only the General Fund, but the Measure P Fund, the Fire Equipment Lease Fund, the Legislative Council Fund, and the Public Liability Fund, which are combined with the General Fund for financial reporting purposes. A full analysis of the City’s various funds will be provided in the Management’s Discussion and Analysis section of the Comprehensive Annual Financial Report. As required by Charter Section 504 (f), this statement was published in the local newspaper as discussed above. The detailed data supporting this information is quite voluminous, but is available at your request. The published Comprehensive Annual Financial Report (CAFR) including the opinion of the independent auditors should also be available within the next 60 days and will be provided to City Council. Schedule E provides a complete listing of all budget adjustments between summary accounts approved by the City Manager in accordance with Council Policy 220-02 “Financial Reporting and Transfer Authority” during fiscal year 2016/17. 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 filing of the Annual Financial Status Report and Publishing of the Financial Statement in The Star News supports City of Chula Vista Printed on 11/1/2017Page 2 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 221 File#:17-0439, Item#: 8. the goal of operational excellence by meeting the requirements of the City Charter. CURRENT YEAR FISCAL IMPACT There is no fiscal impact resulting from accepting the Annual Financial Status Report. ONGOING FISCAL IMPACT There is no fiscal impact resulting from accepting the Annual Financial Status Report. ATTACHMENTS 1. Schedule A - General Fund Revenues by Department 2. Schedule B - General Fund Expenditures by Department 3. Schedule C - General Fund Budget Amendments 4. Schedule D - Combined Statement of Revenues, Expenditures and Changes in Fund Equity 5. Schedule E - General Fund Budget Transfers 6. 10/24/2017 Memo to City Council Staff Contact: David Bilby, MSBA, CPFO, Finance Director/Treasurer City of Chula Vista Printed on 11/1/2017Page 3 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 222 SCHEDULE A Department Amended Budget Actual To Date Percentage Realized Year to Date Legislative and Administrative City Council -$1,500$0.0% Boards and Commissions --0.0% City Clerk 5,500 6,452 117.3% City Attorney 168,820 117,889 69.8% Administration 20,000 31,409 157.0% Information Technology Services 38,900 21,973 56.5% Human Resources 172,000 228,456 132.8% Finance 1,021,484 1,248,231 122.2% Total Legislative and Administrative 1,426,704$1,655,910$116.1% Non-Departmental 123,316,184$124,496,005$101.0% Development and Maintenance Services Animal Care Facility 1,576,711 1,502,290 95.3% Community Development Department 983,007 989,374 100.6% Planning and Building Services 2,046,619 1,849,810 90.4% Public Works 13,617,806 13,562,394 99.6% Total Development and Maintenance Services 18,224,143$17,903,868$98.2% Public Safety Police 6,622,170 6,999,289 105.7% Fire 3,975,718 4,540,483 114.2% Total Public Safety 10,597,888$11,539,772$108.9% Culture and Leisure Recreation 2,231,007 2,171,786 97.3% Library 403,279 687,507 170.5% Total Culture and Leisure 2,634,286$2,859,293$108.5% Sub-Total General Fund 156,199,205$158,454,848$101.4% Less Net Transfer In Other General Funds 1,009,932$1,009,932$100.0% Total General Fund 155,189,273$157,444,916$101.5% Sub-Total Other General Funds 1 7,601,613$8,926,286$117.4% Less Net Transfer In General Fund 3,943,430$4,650,349$117.9% Total Other General Funds 3,658,183$4,275,937$116.9% Total All General Funds 158,847,456$161,720,853$101.8% Notes: GENERAL FUND Revenue Status By Department as of June 30, 2017 - Unaudited 1. Other General Funds include the Measure P Fund, the Fire Equipment Lease, Legislative Council, and Public Liability Funds. These funds are combined with the General Fund for financial reporting purposes. 2017-11-07 Agenda Packet Page 223 SCHEDULE B Department Amended Budget 1 Actual To Date 2 Percentage Realized Year to Date Legislative and Administrative City Council 1,551,259$1,436,660$92.6% Boards and Commissions 19,179 14,662 76.4% City Clerk 1,105,043 928,077 84.0% City Attorney 3,044,732 2,832,880 93.0% Administration 2,076,854 2,061,586 99.3% Information Technology Services 4,032,682 3,670,209 91.0% Human Resources 2,697,952 2,469,523 91.5% Finance 3,628,441 3,451,533 95.1% Total Legislative and Administrative 18,156,142$16,865,130$92.9% Non-Departmental 20,688,046$17,348,736$83.9% Development and Maintenance Services Animal Care Facility 2,973,589 2,903,135 97.6% Community Development Department 2,239,007 1,904,761 85.1% Planning and Building Services 2,658,743 2,319,089 87.2% Public Works 27,271,753 26,708,953 97.9% Total Development and Maintenance Services 35,143,092$33,835,938$96.3% Public Safety Police 50,640,648 50,434,681 99.6% Fire 29,248,209 28,417,271 97.2% Total Public Safety 79,888,857$78,851,952$98.7% Culture and Leisure Recreation 4,481,987 4,274,423 95.4% Library 3,887,825 3,878,549 99.8% Total Culture and Leisure 8,369,812$8,152,972$97.4% Sub-Total General Fund 162,245,949$155,054,728$95.6% Less Net Transfer Out Other General Funds 3 3,943,430$4,650,349$117.9% Total General Fund 158,302,519$150,404,379$95.0% Sub-Total Other General Funds 4 9,668,485$8,408,309$87.0% Less Net Transfer Out General Fund 1,009,932$1,009,932$100.0% Total Other General Funds 8,658,553$7,398,377$85.4% Total All General Funds 166,961,072$157,802,756$94.5% Notes: 2. The Actual-to-Date Column does not reflect carryovers from FY 2016/17 to FY 2017/18 for CIP Projects and other encumbrances. 4. Other General Funds include the Measure P Fund, the Fire Equipment Lease, Legislative Council, and Public Liability Funds. These funds are combined with the General Fund for financial reporting purposes. GENERAL FUND Expenditure Status By Department as of June 30, 2017 - Unaudited 1. Amended Budget column includes $6.36 million in carryovers for encumbrances ($5.06 M) and CIP projects ($1.3 M) 3. This variance occurred as a result of a sales tax payment that included Measure P proceeds accurately booked to FYE 2017, which came in after the FY 2016/17 4th quarter budget cleanup item approved by City Council on 9/26/2017. A budget adjustment for this variance will be included with the Comprehensive Annual Financial Report submission to City Council later in the fall. 2017-11-07 Agenda Packet Page 224 SCHEDULE C Net Resolution Budget Amendments Revenue Expenditure Impact 2016-124 Principal Management Analyst and Senior Civil Engineer Reclassification (Public Works)$32,212 $32,212 $0 2016-116 Senior Economic Development Specialist Classification review (Economic Development)$0 $0 $0 2016-157 Addition of 1.00 Latent Print Examiner through County of San Diego Cal-ID Program (Police)$23,000 $23,000 $0 2016-172 Budget adjustments related to the new ERP Software with Tyler Technologies (Various)$0 $0 $0 2016-179 Addition of Administrative Fees for Fiscal Agent Positions (Police)$18,576 $0 $18,576 2016-212 Addition of Administrative Fees for Fiscal Agent Positions (Police)$5,094 $0 $5,094 2016-239 First Quarter Budget Adjustments $1,563,189 $1,505,654 $57,535 2016-224 Transfer from Personnel Services to Supplies and Services for Veterinarian Svcs. ($35,000) (Animal Care Facility)$0 $0 $0 2016-233 Reduction of Dispatch Supervisor (Police)$0 ($46,661) $46,661 2016-233 Addition of Dispatcher (Police)$0 $40,473 ($40,473) 2016-233 Reduction of Sr. Mgmt. Analyst (Police)$0 ($54,092) $54,092 2016-233 Addition of Supervising Public Safety Analyst (Police)$0 $59,572 ($59,572) 2016-263 FY 17 Measure P Revenues $3,200,000 $3,200,000 $0 2017-009 Business Attraction/Retention (Economic Development/Non- Departmental)$200,000 $200,000 $0 2017-010 Addition of Fiscal Office Spec. (Economic Development)$27,549 $27,549 $0 2017-013 Software for Open Counter (Economic Development/Non- Departmental)$86,000 $86,000 $0 2017-020 In County Contract Services (Animal Care Facility)$25,000 $25,000 $0 2017-028 Second Quarter Budget Adjustments $119,454 $359,454 ($240,000) 2017-069 Third Quarter Budget Adjustments ($785,431) ($688,951)($96,480) 2017-101 Donations, Sponsorships associated with Recreation Facilities and Programs $31,312 $31,312 $0 2017-183 FY2016 Year-End Budget Adjustments $5,219,120 $5,219,120 $0 General Fund Budget Amendments Per Council Resolutions as of June 30, 2017 - Unaudited 2017-11-07 Agenda Packet Page 225 SCHEDULE D Total General Special Debt Service Capital Enterprise Internal All Funds Funds Revenue Funds Funds Project Funds Funds Service Funds Total Fund Equity June 30, 2016 556,680,228$37,401,159$39,535,378$(9,869,230)$87,222,615$401,749,408$640,897$ Revenues 2016-2017 Taxes 125,335,624 113,405,093 11,514,481 - 416,050 -- Intergovernmental Revenues 23,420,207 1,928,987 18,125,324 - 3,365,896 -- Licenses & Permits 1,295,976 1,266,886 29,090 ---- Developer Fees 8,811,379 -1,202 - 8,810,177 -- Charges for Current Services 75,052,110 10,318,023 16,354,203 -- 41,557,890 6,821,994 Fines, Forfeitures & Penalties 1,808,272 1,130,782 677,490 ---- Use of Money & Property 4,486,585 2,604,439 1,004,107 38,186 219,932 599,054 20,868 Other Revenues 65,391,909 20,901,205 3,523,973 37,731,283 9,429 3,209,073 16,945 Total Revenues 305,602,062 151,555,414 51,229,871 37,769,468 12,821,485 45,366,017 6,859,807 Transfers In 60,717,767 10,165,448 328,958 46,802,863 464,368 1,456,130 1,500,000 Total Revenues and Transfers In 366,319,829 161,720,862 51,558,829 84,572,331 13,285,853 46,822,146 8,359,807 Expenditures 2016-2017: General Government 44,864,250 33,206,118 4,262,629 - 147,530 - 7,247,973 Public Safety 87,471,615 78,789,626 8,681,989 ---- Public Works 80,202,630 29,223,420 13,937,146 - 295,289 36,746,775 - Parks and Recreation 5,289,784 4,274,423 129,402 - 885,959 -- Library 4,731,667 3,878,549 853,118 ---- Public Transit ------- Capital Outlay 22,140,896 1,059,677 11,793,958 - 6,921,382 2,365,878 - Debt Service:------ Principal 45,906,528 262,204 - 45,644,324 --- Interest and Fiscal Charges 5,287,881 83,057 - 5,204,824 --- Total Expenditures 295,895,251 150,777,074 39,658,243 50,849,148 8,250,159 39,112,654 7,247,973 Transfers Out 65,009,988 7,025,684 10,445,405 36,209,494 5,902,149 5,427,257 - Total Expenditures and Transfers Out 360,905,238 157,802,758 50,103,648 87,058,641 14,152,308 44,539,910 7,247,973 Contributed Capital 138,221,799 ---- 137,242,657 979,141 Retained Earnings - Unreserved 267,562,577 ---- 266,788,986 773,590 Fund Balances:----- Nonspendable 28,310,916 7,368,572 3,562,783 - 17,379,562 -- Restricted 106,266,352 - 37,289,753 - 68,976,598 -- Committed 7,899,329 7,618,471 138,022 142,837 --- Assigned 5,051,623 5,051,623 ----- Unassigned 8,782,223 21,280,599 - (12,498,376)--- Total Fund Equity June 30, 2017 562,094,818$41,319,264$40,990,558$(12,355,540)$86,356,160$404,031,644$1,752,731$ The Finance Department of the City of Chula Vista has compiled the above Statement of Revenues, Expenditures and Changes in Fund Equity for the year ended June 30, 2017. Such amounts are subject to adjustment through the annual audit process which is being performed by an independent public accounting firm. This report excludes Trust Funds, the Successor Agency to the Redevelopment Agency, and the Public Financing Authority. David Bilby, MSBA, CPFO, Director of Finance/Treasurer City of Chula Vista Combined Summary Statement of Revenues, Expenditures and Changes in Fund Equity Year Ended June 30, 2017 - Unaudited 2017-11-07 Agenda Packet Page 226 SCHEDULE E Description Dept. Amount From/To Reallocate personnel budgets Finance 210,922$Personnel Services to Personnel Services Transfer for copier lease Human Resources 352$Supplies and Services to Capital Transfer to cover Veterinary expenses Environmental Services 15,000$Personnel Services to Supplies and Services Transfer to supplies and services City Clerk 8,600$Capital to Supplies and Services Transfer from Supplies and Services to Personnel Services Office Communication 15,000$Supplies and Services to Personnel Services Transfer between codes within the Fires Department's Supply and Services& Personnel Services Fire 74,546$Repair & Maintenance Equipment to Personnel Services Transfer between codes within the Fires Department's Supply and Services& Personnel Services Fire 39,099$Travel & Conference to Software Maintenance and Supplies Transfer between codes within the Fires Department's Supply and Services& Personnel Services Fire 20,422$Repair & Maintenance Equipment to Personnel Services Transfer from Personal Services savings to Supplies and Services for office furniture Finance 11,461$Personnel Services to Supplies and Services Transfer from Personal Services savings to Supplies and Services related to the remodeling, modification of office space.Finance 6,000$ Personnel Services to Supplies and Services Transfer savings from Personnel Services to Supplies for Consultant Services & Purchase of computer equipment.Finance 12,000$Personnel Services to Contractual Services & Computers To transfer Community Patrol to create new Joint Terrorism Task Force Police 46,085$Personnel Services to Personnel Services To create a budget for the approved Professional Standards Unit position.Police 34,791$Personnel Services to Personnel Services Transfer to Park Maintenance form Public Works Operations Administration.Public Works 15,000$Utilities to Supplies and Services Transfer to Construction and Repair to Public Works Operations Administration.Public Works 15,000$Utilities to Supplies and Services Street Light maintenance supplies and services for urgent street light and traffic signal repairs.Public Works 15,000$Utilities to Repair and Maintenance of Equipment Transfer from Public Works Operations Administration to Public Works Construction and Repair Public Works 286,289$Utilities to Repair and Maintenance of Bldgs. To Contract Vets to cover leave of absence. Environmental Services 12,500$Personnel Services to Contracted Services To cover cost of purchase of new laptop.City Council 1,500$Contracted Services to Repair and Maintenance of Bldgs. To cover current utility category deficit any remaining charges for this fiscal year. Economic Development 1,520$Utilities to Equipment $ Furnishings Personnel Services savings transfer to Supplies & Service to cover the over budget expenditures Economic Development 10,000$Personnel Services to Supplies and Services Transfer to Human Resources utilities budget Human Resources 131$Office Supplies to Utilities Transfer to vehicle miscellaneous expenses.Fire 4,309$Other Expenses to Equipment Transfer for FY17 budget clean-up Finance 2,663$Equipment to Credit Cards Fees Transfer for FY17 budget clean-up Public Works 6,837$Personnel Services to Equipment Transfer for FY17 category clean-up Administration 26,627$Utilities to Other Expenses Transfer for FY17 category clean-up City Clerk & Administration 9,114$Personnel Services to Other expenses Total Transfers 900,768$ General Fund Budget Transfers Approved by Administration as of June 30, 2017 - Unaudited 2017-11-07 Agenda Packet Page 227 2017-11-07 Agenda Packet Page 228 City of Chula Vista Staff Report File#:17-0458, Item#: 9. ..Title RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADDING TWELVE FIREFIGHTERS TO THE AUTHORIZED STAFFING OF THE FIRE DEPARTMENT (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council adopt the resolution. SUMMARY The U.S. Department of Homeland Security, Federal Emergency Management Agency (FEMA) has awarded the Chula Vista Fire Department the fiscal year 2016 Staffing for Adequate Fire and Emergency Response (SAFER) grant to hire twelve (12) firefighters. The SAFER grant is designed 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 ability to comply with staffing, response and operational standards established by National Fire Protection Association (NFPA) 1710. This is a cost sharing grant over a three-year performance period beginning January 19, 2018. The Fire Department is requesting to add twelve new full-time employees (firefighters) as authorized staffing and to appropriate funds not provided by the SAFER grant. 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 On August 8, 2017 the City Council approved Resolution 2017-153, which accepted the 2016 SAFER grant award to hire twelve (12) firefighters. The SAFER grant provides funding directly to fire departments to increase or maintain the number of trained "front line" firefighters available in their City of Chula Vista Printed on 11/2/2017Page 1 of 4 powered by Legistar™2017-11-07 Agenda Packet Page 229 File#:17-0458, Item#: 9. 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 ability to comply with staffing, response and operational standards established by NFPA Standard 1710. On February 10, 2017, the Fire Department applied for the SAFER grant, and on July 28, 2017 the Fire Department received notification of the grant award. The performance period of the grant is three years and is slated to begin January 19, 2018. 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, which will occur prior to the fire academy. The grant and matching funds are allocated as follows: PERIOD FEDERAL SHARE FEDERAL AMOUNT CITY SHARE CITY SHARE TOTALS First -12 Months 75%$918,027 25%$306,009 $1,224,036 Second -12 Months 75%$918,027 25%$306,009 $1,224,036 Third - 12 Months 35%$428,412 65%$795,624 $1,224,036 TOTAL $2,264,466 $1,407,642 $3,672,108 The Federal award amount for the complete performance period is $2,264,466. As a condition of the grant, the City is required to contribute a cost match in the amount of $1,407,642, for a total project cost of $3,672,108. The addition of 12 new firefighters will increase staffing levels from 3.0 to 4.0 on four engine companies for each of the three rotating shifts. Benefits of these additional firefighter positions will include creating an Initial Attack Force (IAF) allowing immediate firefighting entry upon arrival of the first engine on scene (Two-in, Two-out), and creating an Effective Fire Force (EFF) at structure fires faster when compared to the current 3.0 staffing model. Currently, Department compliance with EFF is 35%. With 12 additional firefighters, data modeling shows a compliance increase to 58% providing a 23% improvement. In addition, the National Institute of Standards and Technology (NIST) study findings conclude that four person companies can complete the 22 essential firefighting functions 25% faster than an engine company staffed with three personnel. In 2011, a Chula Vista Fire Department internal critical task analysis was completed. The analysis demonstrated that an OSHA mandated Rapid Intervention Crew (RIC) with a charged hose line could be deployed in 2 minutes 30 seconds with a 4.0 staffed crew vs. 6 minutes with a 3.0 staffed crew. In the same analysis, a three-minute difference was demonstrated when 4.0 staffed crews applied water to the fire. These two major performance metrics described above (IAF & EFF) can be found in the table below with current performance of the Fire Department and expected outcomes with the 12 new firefighters. City of Chula Vista Printed on 11/2/2017Page 2 of 4 powered by Legistar™2017-11-07 Agenda Packet Page 230 File#:17-0458, Item#: 9. Anticipated Department-wide Performance Improvements METRIC WITHOUT SAFER GRANT WITH SAFER GRANT Daily on-duty firefighters 42 54 Engine companies with 4 firefighters daily 0%50% Initial Attack Force -4 firefighters to arrive at a fire within 6 minutes 20 seconds (380 seconds) 47%58% Effective Firefighting Force-14 firefighters to arrive at a fire within 10 minutes 20 seconds (620 seconds) 35%58% To add 12 new firefighters, the Fire Department worked hand in hand with Finance and Human Resources to: ·Establish a fire recruit job classification ·Establish a fire recruit eligibility list ·Develop a fire recruit hiring plan for a Fire Academy beginning January 19, 2018 ·Add 12 new firefighter FTE to the Fire Department’s authorized staffing ·Develop/identify funding to be allocated for the Fire Academy and the City’s share of the SAFER Grant. Department Position Title FTE Fire Firefighter 12.00 Total City-Wide Position Changes (Net Increase/Decrease) 12.00 DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently the 500-foot rule found in California Code of Regulations section 18704.2 (a)(1) is not applicable to this decision. Staff is not independently aware, nor has staff been informed by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. We anticipate that hiring 12 firefighters will improve firefighting performance metrics and move the Fire Department and the City towards improved operational delivery by placing four firefighter’s on- scene at 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 City of Chula Vista Printed on 11/2/2017Page 3 of 4 powered by Legistar™2017-11-07 Agenda Packet Page 231 File#:17-0458, Item#: 9. 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 Fiscal impact for FY17/18 includes entry level Fire Recruit Academy training beginning January 2018 and ending May 2018 plus salary and benefit costs as Firefighter EMTs and Paramedics through June 30, 2018. These expenses are depicted in the table below: SAFER Grant revenues equal 75% of the salary and benefit costs of the respective 12 FTE firefighter positions. No additional funding is being requested at this time. The Fire Department is working with City Management and Finance to identify potential cost savings and additional revenues to offset the impacts of the academy. If it is determined that additional funding will be needed in the current year, staff will return to Council with an appropriation request at that time. ONGOING FISCAL IMPACT Ongoing fiscal impact for FY19 is depicted in the table below: Funding for ongoing impacts will be budgeted in future budget processes. SAFER Grant revenues reimburse the city for 75% of the salary and benefit costs of the respective 12 FTE firefighter positions beginning January 2018 through January 2020, then transition to 35% from January 2020 through January 2021. ATTACHMENTS None Staff Contact:Harry Muns, Courtney Chase, David Bilby City of Chula Vista Printed on 11/2/2017Page 4 of 4 powered by Legistar™2017-11-07 Agenda Packet Page 232 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADDING TWELVE FIREFIGHTERS TO THE AUTHORIZED STAFFING OF THE FIRE DEPARTMENT 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 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 departments' abilities to comply with staffing, response and operational standards established by NFPA 1710; and WHEREAS, on May 23, 2017 the City Council approved resolution 2017-153 to accept the 2016 SAFER grant award for the Fire Department to hire twelve (12) firefighters to staff four engine companies with four firefighters each; 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 starting on January 24, 2018 through January 23, 2021; and WHEREAS, the Federal award share is $2,264,466 and the City’s share is $1,407,642 for a total project cost of $3,672,108; and WHEREAS, the cost to recruit, hire, and train 12 new firefighters to staff four engine companies with four firefighters each for this fiscal year is $800,169; and WHEREAS, the ongoing fiscal impact to the City beyond the grant performance period is estimated at $1.7 million dollars per year and will be included in the City Manager proposed budget and will be considered by the City Council as part of the annual budget process. WHEREAS, the Fire Department recommends that Council approve the addition of 12 new firefighters to the Fire Department’s authorized positions; and WHEREAS, the Fire Department is working with City Management and Finance to identify potential cost savings and additional revenues to offset the impacts of the academy; and 2017-11-07 Agenda Packet Page 233 WHEREAS, the Fire Department, City Management, and Finance are not requesting additional funding at this time. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves adding 12 firefighters to the authorized staffing of the Fire Department. Presented by Approved as to form by Jim Geering Glen R. Googins Fire Chief City Attorney 2017-11-07 Agenda Packet Page 234 City of Chula Vista Staff Report File#:17-0427, Item#: 10. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT FOR DEFERRAL OF DEVELOPMENT IMPACT FEES BETWEEN THE CITY AND SETHI MANAGEMENT, INC. FOR APPROXIMATELY $1.3 MILLION IN FEES IN CONNECTION WITH A 204-ROOM HOTEL PROJECT AT 2424 FENTON STREET RECOMMENDED ACTION Council adopt the resolution. SUMMARY Sethi Management Inc. is developing a 204-room hotel located in the Eastlake Business Center. Once operational, the hotel will generate significant positive community impacts by creating jobs, generating Transient Occupancy Taxes to the City, and providing visitor accommodations and amenities. In order to make the project financially feasible, staff is recommending an agreement to defer payment of Public Facilities and Transportation Development Impact Fees totaling approximately $1.3 million for a period of fifty-four (54) months. 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 Staff recommends entering into a development impact fee deferral agreement with Sethi Management Inc. for the development of a 204-room hotel project at 2424 Fenton Street. The developer has pursued and secured financing to commence and complete the project, but requires assistance in the form of a development impact fee deferral to make the project fiscally feasible. The project is anticipated to create 50 fulltime and 20 part-time jobs and to generate approximately $800,000 in Transient Occupancy Tax (TOT) revenues to the City on an annual basis. In addition to City of Chula Vista Printed on 11/2/2017Page 1 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 235 File#:17-0427, Item#: 10. $800,000 in Transient Occupancy Tax (TOT) revenues to the City on an annual basis. In addition to these direct economic impacts, the project will result in between 150 and 200 daily visitors staying overnight and patronizing other local businesses. Finally, the project will provide much needed visitor accommodations and amenities in the eastern territory. The proposed agreement defers the Public Facilities Development Impact Fees (PFDIF) and Transportation Development Impact Fees (TDIF) for the project, in accordance with the following terms: ·City agrees to defer collection of PFDIF and TDIF fees due for the project for a period of fifty- four (54) months from the date of issuance of the certificate of occupancy for the project (the “Effective Date”). ·The deferred fees will accrue interest at a rate of 2% per annum from the Effective Date. ·Lump sum payment of the deferred fees and the interest thereon will be due fifty-four months from the Effective Date. ·The Developer agrees to record a Trust Deed to secure repayment of the impact fee deferral. 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. The deferral agreement supports the Economic Vitality goal as it seeks to lower economic barriers to new growth. CURRENT YEAR FISCAL IMPACT All costs associated with preparation of the agreement are funded by the respective fee programs, resulting in no net impact to the General Fund or Development Services Fund in conjunction with this action. ONGOING FISCAL IMPACT Approval of the proposed agreement defers impact fee revenues of approximately $1.3 million that would have otherwise been collected by the PFDIF and TDIF, as summarized in the table below. FEE PROGRAM AMOUNT PFDIF $122,340 TDIF $1,223,478 TOTAL $1,345,818 City of Chula Vista Printed on 11/2/2017Page 2 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 236 File#:17-0427, Item#: 10. In order to mitigate future construction cost increases and lost investment earnings, the deferred impact fees will accrue interest charges at a rate of 2% per year, beginning with the issuance of the certificate of occupancy for the project. ATTACHMENTS 1. Agreement with Sethi Management Inc. Staff Contact: Tiffany Allen, Development Services Department City of Chula Vista Printed on 11/2/2017Page 3 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 237 C:\Users\legistar\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@1C0E6EA3\@BCL@1C0E6EA3.doc RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT FOR DEFERRAL OF DEVELOPMENT IMPACT FEES BETWEEN THE CITY AND SETHI MANAGEMENT, INC. FOR APPROXIMATELY $1.3 MILLION IN FEES IN CONNECTION WITH A 204-ROOM HOTEL PROJECT AT 2424 FENTON STREET WHEREAS, development of hotels in eastern Chula Vista has been a challenge for investors and developers due to the high cost of development and construction; and WHEREAS, Sethi Management Inc. has secured financing to develop a 204-room hotel project at 2424 Fenton (the “Project”) but requires the deferral of certain development impact fees to a future point of stabilized operations in order for the project to be fiscally feasible; and WHEREAS, the proposed Project will be of public benefit by providing new, highly amenitized visitor accommodations, creating jobs, and generating Transient Occupancy Tax revenues to the City; and WHEREAS, the proposed Agreement for Deferral of Development Impact Fees (Agreement) provides necessary financial assistance by allowing for the deferral of Public Facilities Development Impact Fees (PFDIF) and Transportation Development Impact Fees (TDIF), with a total deferral amount of approximately $1.3 million; and WHEREAS, the terms of the Agreement include interest accrual at a fair market rate of two percent (2%) per annum, with the principal and all interest accrued thereon, due and payable fifty-four (54) months from the issuance of the Certificate of Occupancy for the Project, with repayment secured by a Deed of Trust recorded against the property/Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it hereby approves the Agreement for Deferral of Development Impact Fees, between the City and Sethi Management Inc., in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk,and authorizes and directs the Mayor to execute the same. Presented by: Kelly G. Broughton, FASLA Director of Development Services Approved as to form by: Glen R. Googins City Attorney 2017-11-07 Agenda Packet Page 238 City of Chula Vista Agreement No.: 17150 1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL DOCUMENT AND TAX STATEMENT TO: NAME: STREET ADDRESS: CITY, STATE & ZIP CODE: SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY APN: 595-711-19-00 AGREEMENT FOR DEFERRAL OF DEVELOPMENT IMPACT FEES This AGREEMENT FOR DEFERRAL OF DEVELOPMENT IMPACT FEES (“Agreement”), is made and entered into as of , _______, by and between the City of Chula Vista, a chartered municipal corporation (the “City”), and Sethi Management Inc., a California corporation (“Developer,” and collectively with the City, the “Parties”), with reference to the below Recitals. RECITALS A. Developer (and/or its affiliates) owns, in fee simple, the real property generally known as 2424 Fenton Street, Chula Vista, California, 91914, as described in the attached Exhibit “A,” which is incorporated herein (the “Property”). B. The City has received an application from Developer related to the proposed development of a 204 room hotel project on the Property (the “Project”). C. The Project will further the desired objectives and goals of the City to facilitate development of a hotel within the eastern portion of the City thereby offering a significant benefit to the public within the surrounding area. D. As authorized by California Government Code section 66000, et seq., the City imposes development impact fees in connection with the approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project. 2017-11-07 Agenda Packet Page 239 City of Chula Vista Agreement No.: 17150 2 E. It is anticipated that the Project will impact the public facilities of the City, and the Parties wish to ensure that the burdens of the Project and required impact fees correspond proportionately to the impact on the City. F. Developer has pursued numerous financing sources to finance the Project, and has obtained the requisite financing to commence and complete the Project, but requires assistance from the City to defray the development costs to make the Project fiscally feasible. G. The City conditions approval of the Project, inter alia, on the payment by Developer of the: (i) Public Facilities Development Impact Fee pursuant to Chula Vista Municipal Code (“Muni Code”) section 3.50, et seq. (“PFDIF”) and (ii) Transportation Development Impact Fee pursuant to Muni Code section 3.54, et seq. (“TDIF”) (together, the “Impact Fees”). H. Developer has requested and the City agrees to defer the Impact Fees, estimated to be $1,345,818, as provided in this Agreement. AGREEMENT NOW THEREFORE, in consideration of the above Recitals and for good and valuable consideration the receipt and sufficiency of which the Parties hereby acknowledge, Developer and the City agree as follows: 1. Acknowledgments. The Parties hereby certify that the above Recitals are true and correct, which are incorporated herein by this reference. 2. Terms of Payment. Developer will pay the Impact Fees in the sum of $1,345,818. Developer’s obligation to make such payment shall be evidenced by a promissory note (“Note”) executed by Developer in favor of the City, in the form attached hereto as Exhibit “B.” 2.1. Developer shall execute and deliver the Note to the City concurrently with its execution of this Agreement. 2.2. Full satisfaction of the Impact Fees shall be deferred for fifty-four (54) months from the date of the issuance of the Certificate of Occupancy for the Project (“Effective Date”). 2.3. The Impact Fees shall bear interest at the rate of two percent (2.00%) per annum, and be paid in full, including all interest thereon, as a lump sum payment fifty-four (54) months from the Effective Date. 2017-11-07 Agenda Packet Page 240 City of Chula Vista Agreement No.: 17150 3 2.4. Interest shall begin to accrue as of the Effective Date. 2.5. The outstanding balance shall become immediately due and payable if Developer transfers the Project and/or Property to any other party without the reasonable advance written approval of the City and the acceptance by the other party (the “Transferee”) of the obligation to pay the outstanding balance of the deferred fees as provided herein, including, without limitation, the provision of appropriate security acceptable to the City as evidenced in writing by the Transferee. Developer shall notify the City in writing thirty (30) calendar days prior to transferring the Project and/or Property to the Transferee. Notwithstanding Paragraph 6 herein, Developer hereby acknowledges and agrees that any transfer of the Project and/or Property will be developed and operated in accordance with the same standards as was originally approved by the City for the Project at the City’s sole discretion and determination. 2.6. Developer may prepay the outstanding balance of the Note at any time without penalty. 3. Security. The Note representing the obligation to pay the Impact Fees shall be secured by a deed of trust recorded against the Property (“Trust Deed”), in the form attached hereto as Exhibit “C.” The Trust Deed shall be subordinated to all voluntary liens from financing lenders for the Property. Developer agrees that at no time after the Effective Date will the principal balance of the Note exceed five percent (5.00%) of the stabilized value of the Property, as developed with the Project, as determined by an appraiser as of the Effective Date. 4. Development of the Project. This Agreement does not obligate Developer to commit to or agree to undertake any disposition or use of the Property nor does it commit Developer to pursue government approvals for the development of the Property. Developer shall have no obligations or liabilities under this Agreement, the Note and the Trust Deed, and each shall be deemed rescinded and reconveyed as appropriate, if Developer provides notice to the City of its abandonment of the Project at any time prior to issuance of a Certificate of Occupancy. 6. Assignments and Transfers. Developer may not assign or transfer its interest in the Project without the City's prior written consent, which shall not be unreasonably withheld. 7. Remedies. In order to enforce Developer’s obligations under the terms of this Agreement or the Note, the City shall be entitled to pursue any and all remedies provided at law or in equity, including, without limitation, any and all remedies provided under the Note and Trust Deed. Without limiting the generality of the foregoing, in the event of a default by Developer of its obligations hereunder, the City shall have the right to accelerate the debt owed under the Note and pursue collection of the Impact Fee directly from Developer. All such remedies shall be cumulative and non-exclusive. Notwithstanding the foregoing, Developer 2017-11-07 Agenda Packet Page 241 City of Chula Vista Agreement No.: 17150 4 shall have no further obligations or liabilities under this Agreement and the Note upon an assignment or transfer of the Project consented to by the City. 8. Indemnification. To the maximum extent allowed by law, Developer shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers, agents, volunteers, and employees (collectively the “Indemnified Parties”), from and against any and all claims, demands, causes of action, costs, expenses, (including reasonable attorney’s fees and actual costs), liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Developer, its officials, officers, employees, agents, contractors, and subcontractors arising out of or in connection with this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the negligence or willful misconduct of the Indemnified Parties. 9. Agreement Runs with the Land. The burden of the covenants contained in this Agreement is for the benefit of the Property and the City, its successors and assigns and any successor in interest and thereby run with the land. City is deemed the beneficiary of such covenants for and in its own right and for the purposes of protecting the interest of the community. 10. Miscellaneous Provisions. 10.1. Authority. Each of the signatories to this Agreement warrants and represents that he or she is competent and authorized to enter this Agreement on behalf of the Party for whom he or she purports to sign. 10.2. Notices. Any and all notices or other communications made pursuant to this Agreement shall be given in writing and delivered by Federal Express and email, which shall be addressed as follows: If to City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attn: City Manager’s Office ghalbert@chulavistaca.gov With a copy to: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attn: City Attorney’s Office ggoogins@chulavistaca.gov 2017-11-07 Agenda Packet Page 242 City of Chula Vista Agreement No.: 17150 5 If to Developer: Sethi Management Inc. Attn: JP Sethi 6100 Innovation Way Carlsbad, CA 92009 jpsethi@sethimanagement.com With a copy to: Jordan M. Freeman The Freeman Law Firm 8050 North Palm Avenue, Suite 300 Fresno, CA 93711 jordan@freemanlawfirmpc.com Notices shall be deemed delivered upon receipt by personal service or as of the second (2nd) business day after deposit with Federal Express. 10.3. Captions. Captions in this Agreement are inserted for convenience of reference and do not define, describe or limit the scope or intent of this Agreement or any of its terms. 10.4. Allocation of Legal Expenses. Each Party shall bear its own costs relative to any costs or expenses incurred in compliance with, or in the drafting or negotiation of, and the approval process, of this Agreement. 10.5. Entire Agreement. This Agreement contains the entire agreement between the Parties regarding the subject matter hereof. Any prior oral or written representations, agreements, understandings, and/or statements shall be of no force and effect and are intended to be replaced in total by this Agreement. Each Party warrants and represents that no representative of any other Party has made any oral representation or oral agreements not contained in this Agreement. Each party further warrants and represents that it has not relied upon any oral statements or promises made by any representatives of any other Party to this Agreement in executing this Agreement. 10.6. Preparation of Agreement. No inference, assumption or presumption shall be drawn from the fact that a Party or its attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both Parties participated equally in the preparation and/or drafting of this Agreement. 10.7. Reserved. 2017-11-07 Agenda Packet Page 243 City of Chula Vista Agreement No.: 17150 6 10.8. Governing Law. This Agreement shall be subject to and governed by the laws of the State of California, without regard to conflict of law rules. 10.9. Severability. In the event that any provision of this Agreement is declared by any court of competent jurisdiction or any administrative judge to be void or otherwise invalid, all of the other terms, conditions and provisions of this Agreement shall remain in full force and effect to the same extent as if that part declared void or invalid had never been incorporated in the Agreement and in such form, the remainder of the Agreement shall continue to be binding upon the Parties. 10.10. Counterparts. This Agreement may be signed and executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one Agreement. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or email shall be effective as delivery of an originally executed counterpart of this Agreement. 10.11. Time of the Essence. Time is of the essence in the performances of the Parties’ obligations contained herein. 10.12. Waiver. A failure of a Party to enforce strictly a provision of this Agreement shall in no event be considered a waiver of any Party of such provision. No waiver by a Party of any breach or default by the other Party shall operate as a waiver of any succeeding breach or other default or breach by such other Party. 10.13. Further Acts. In addition to the acts recited in this Agreement, the Parties agree to perform, or cause to be performed on the date of this Agreement, or thereafter, any and all such further acts as may be reasonably necessary to consummate the transactions contemplated hereby. Each of the Parties agrees that it will execute and deliver all such documents and instruments as may be necessary and appropriate to effectuate the terms of this Agreement. [SIGNATURE PAGE TO FOLLOW] 2017-11-07 Agenda Packet Page 244 City of Chula Vista Agreement No.: 17150 7 IN WITNESS WHEREOF, this Agreement has been executed by the Parties as of the date first written above. SETHI MANAGEMENT INC. a California Corporation By: ______________________________ Name: JP Sethi* Title: President CITY OF CHULA VISTA a chartered municipal corporation By: ______________________________ Name: ______________________________ Title: ______________________________ ATTEST: By: ______________________________ Name: ______________________________ Title: City Clerk APPROVED AS TO FORM: By: ______________________________ Name: ______________________________ Title: City Attorney * Corporate Authority required for Signatory J:\Attorney\MichaelSh\Hilton Hotel - Fenton East\FeeDeferral\Agreements\HiltonHotel-TDIF&PFDIF-DeferralAgrmt-11.1.17-Final.docx 2017-11-07 Agenda Packet Page 245 1 EXHIBIT A –LEGAL DESCRIPTION OF PROPERTY LEGAL DESCRIPTION Real property in the City of Chula Vista, County of San Diego, State of California, described as follows: PARCEL 1 OF PARCEL MAP NO. 20413, IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO,STATE OF CALIFORNIA, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY ON DECEMBER 26, 2007. EXCEPTING THEREFROM, ALL OIL, OIL RIGHTS, MINERALS, MINERAL RIGHTS, NATURAL GAS RIGHTS, AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN, GEOTHERMAL STEAM AND ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING, THAT MAY BE WITHIN OR UNDER THE PARCEL OF LAND HEREINABOVE DESCRIBED, TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, MINING, EXPLORING, AND OPERATION THEREFORE AND STORING IN AND REMOVING THE SAME FROM SAID LAND OR ANY OTHER LAND, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAN THOSE HEREINABOVE DESCRIBED, OIL OR GAS WELLS, TUNNELS AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE LAND HEREINABOVE DESCRIBED, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE EXTERIOR LIMITS THEREOF, AND TO REDRILL, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES WITHOUT, HOWEVER, THE RIGHT TO DRILL, MINE, STORE, EXPLORE AND OPERATE THROUGH THE SURFACE OR THE UPPER FIVE HUNDRED (500) FEET OF THE SUBSURFACE OF THE PROPERTY, AS RESERVED IN THE DEED RECORDED JANUARY 12, 2005 AS INSTRUMENT NO. 2005-0031216 OF OFFICIAL RECORDS. APN: 595-711-17-00 2017-11-07 Agenda Packet Page 246 1 EXHIBIT B –NOTE PROMISSORY NOTE SECURED BY DEED OF TRUST The undersigned, Sethi Management Inc., a California corporation (“Borrower”), promises to pay to the City of Chula Vista, a chartered municipal corporation (“Lender”), the principal sum of one million, three hundred forty-five thousand, eight hundred and eighteen dollars ($1,345,818), together with interest on the unpaid principal balance at an annual rate of two percent (2%),with all interest due and payable fifty-four (54) months from the date of the issuance of the Certificate of Occupancy for the Project (the “Maturity Date”), as defined, described, and set forth in that certain Agreement for Deferral of Development Fees between Borrower and Lender (the “Deferral Agreement”), the terms of which are incorporated by this reference. This promissory note (“Note”) shall be subject to the following additional provisions: 1.Payment Schedule:Payment hereunder shall consist of principal and accrued interest,if any,payable in full as of the Maturity Date. 2.Interest: Interest on the unpaid balance shall begin to accrue on the date of the issuance of the Certificate of Occupancy for the Project, at an annual rate of two percent (2%), as defined in the Deferral Agreement. 3.Security:This Note is secured by a Deed of Trust of even date herewith, made by Borrower, as trustor, for the benefit of Lender, as beneficiary (the “Deed of Trust”), covering certain real property, as therein described. 4.Prepayment:This Note may be prepaid, at any time, in whole or in part, without premium or penalty, as long as any principal prepayment is accompanied by a payment of interest accrued to the date of prepayment of the amount prepaid. 5.Default: The occurrence of any of the following events shall constitute an “Event of Default” hereunder: (a) Borrower’s failure to pay any sum due under this Note when it becomes due and payable, (b) the occurrence of a default under the Deed of Trust and the Deferral Agreement, or (c) any breach of any other promise or obligation in this Note or in any other instrument now or after this date securing the indebtedness evidenced in this Note. During an Event of Default, and after written notice has been given therefor and such Event of Default remains uncured for 21 days after delivery of notice, Lender may, at its option, declare this Note (including, without limitation, all accrued interest) to be immediately due and payable, regardless of the Maturity Date. 2017-11-07 Agenda Packet Page 247 2 6.Costs of Collection: If this Note is not paid when due, whether on the Maturity Date or on acceleration of this Note, Borrower promises to pay all collection costs, including, but not limited to, attorney fees and court costs, whether or not suit is filed on this Note. 7.Waiver of Presentment: Borrower and all persons liable or to become liable on this Note waive presentment, protest, and demand; notice of protest, demand, and dishonor; and any and all other notices or matters of a like nature. 8.Default Rate of Interest: During an Event of Default, the unpaid payment(s) causing such Event of Default shall bear interest at an annual rate equal to the lesser of (a) five percent (5%) or (b) the maximum interest rate allowed by law until such sum is paid in full. 9.Governing Law: This Note shall be governed by and construed in accordance with the laws of the State of California. 10.Usury. All agreements between Borrower and Lender are expressly limited, so that in no event or contingency, whether because of the advancement of the proceeds of this Note, acceleration of maturity of the unpaid principal balance, or otherwise, shall the amount paid or agreed to be paid to Lender for the use, forbearance, or retention of the money to be advanced under this Note exceed the highest lawful rate permissible under applicable usury laws.If, under any circumstances, fulfillment of the provisions of this Note or the Deed of Trust securing this Note or any other agreement pertaining to this Notice, after timely performance of such provisions is due, shall involve exceeding the limit of val idity prescribed by law that a court of competent jurisdiction deems applicable, then ipso facto, the obligations to be fulfilled shall be reduced to the limit of such validity. If, under any circumstances, Lender shall receive as interest an amount that exceeds the highest lawful rate, the amount that would be excessive interest shall be applied to reduce the unpaid principal balance under this Note and not to pay interest, or, if such excessive interest exceeds the unpaid principal balance under this Note, such excess shall be refunded to Borrower. This provision shall control every other provision of all agreements between Borrower and Lender. 11.Time is of the Essence: Time is of the essence with respect to all obligations of Borrower under this Note. [SIGNATURE PAGE TO FOLLOW] 2017-11-07 Agenda Packet Page 248 3 IN WITNESS WHEREOF, Borrower has executed this Promissory Note Secured by Deed of Trust as of the date written below. Date:Borrower: SETHI MANAGEMENT INC., a California corporation By: Name:JP Sethi Title:President 2017-11-07 Agenda Packet Page 249 1 EXHIBIT C – TRUST DEED RECORDING REQUESTED BY AND WHEN RECORDED MAIL DOCUMENT AND TAX STATEMENT TO: NAME: STREET ADDRESS: CITY, STATE & ZIP CODE: SPACE ABOVE THIS LINE FOR RECORDER’S USE ONLY APN: 595-711-19-00 DEED OF TRUST This Deed of Trust (this “Deed”) is made as of , 2017, between Sethi Management Inc., a California corporation, herein called “Trustor”, who address is 6100 Innov ation Way, Carlsbad, California 92009, , herein called “Trustee”, and the City of Chula Vista, a chartered municipal corporation, herein called “Beneficiary.” TRUSTOR IRREVOCABLY GRANTS, TRANSFERS, AND ASSIGNS TO TRUSTEE IN TRUST, WITH POWER OF SALE, that certain real property in San Diego County, California, (the “Property”) having assessor’s parcel number 595-711-19-00, and more particularly described in Exhibit A, attached hereto and by this reference incorporated herein. THIS DEED IS MADE FOR THE PURPOSE OF SECURING: A. Performance of each obligation, covenant and agreement of Trustor herein contained; and B. Payment of the indebtedness evidenced in one promissory note of even date herewith, and any extension and renewal thereof, in the principal sum of one million, three hundred forty-five thousand, eight hundred and eighteen dollars ($1,345,818), executed by Trustor as “Borrower,” in favor of Beneficiary or order. TO PROTECT THE SECURITY OF THIS DEED, TRUSTOR AGREES: 1. To keep the Property in good condition and repair; not to remove or demolish any building, thereon; to complete or restore promptly and in good and workmanlike manner any building which may be constructed, damaged or destroyed thereon and to pay when due all claims for labor performed and materials furnished therefor; to comply with all laws affecting the Property or requiring an y alterations or improvements to be made thereon, not 2017-11-07 Agenda Packet Page 250 2 to commit or permit waste thereof; not to commit, suffer or permit any act upon the Property in violation of law; to cultivate, irrigate, fertilize, fumigate, prune and do all other acts which from the character or use of the Property may be reasonably necessary, the specific enumerations herein not excluding the general. 2. To provide, maintain and deliver to Beneficiary fire insurance satisfactory to and with loss payable to Beneficiary. The amount collected under any fire other insurance policy may be applied by Beneficiary upon any indebtedness secured hereby and in such order as Beneficiary may determine, or at option of Beneficiary the entire amount so collected or any part thereof may be released to Trustor. Such application or release shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. 3. To appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; and to pay all costs and expenses, including cost of evidence of title and attorney’s fees in a reasonable sum, in any such action or proceeding in which Beneficiary or Trustee may appear, and in any suit brought by Beneficiary to foreclose this Deed. 4. To pay: at least ten days before delinquency all taxes and assessments affecting the property, including assessments on appurtenant water stock; when due, all encumbrances, charges and liens, with interest, on the property or any part thereof, which appear to be prior or superior hereto; all costs, fees and expenses of this Trust. Should Trustor fail to make any payment or to do any act as herein provided, then Beneficiary or Trustee, but without obligation so to do, without notice to or demand upon Trustor, and without releasing Trustor from any obligation hereof, may: make or do the same in such manner and to such extent as either may deem necessary to protect the security hereof, Beneficiary or Trustee being authorized to enter upon the property for such purposes; appear in and defend any action or proceeding purporting to affect the security hereof or the rights or powers of Beneficiary or Trustee; pay, purchase, contest or compromise any encumbrance, charge or lien which in the judgement of either appears to be prior or superior hereto; and, in exercising any such powers, pay necessary expenses, employ counsel and pay such reasonable fees. 5. To pay immediately and without demand all sums so expended by Beneficiary or Trustee, with interest from date of expenditure at the amount allowed by law in effect at the date hereof, and to pay for any statement provided for by law in effect at the date hereof regarding the obligation secured hereby any amount demanded b y the Beneficiary not to exceed the maximum allowed by law at the time when said statement is demanded. 6. That any award of damages in connection with any condemnation for public use of or injury to the property or any part thereof is hereby assigned and s hall be paid to Beneficiary 2017-11-07 Agenda Packet Page 251 3 who may apply or release such monies received by it in the same manner and with the same effect as above provided for disposition of proceeds of fire or other insurance. 7. That by accepting payment of any sum secured hereby after its due date, Beneficiary does not waive its right either to require prompt payment when due of all other sums so secured or to declare default for failure so to pay. 8. That at any time or from time to time, without liability therefor and without notice, upon written request of Beneficiary and presentation of this Deed and said note for endorsement, and without affecting the personal liability of any person for payment of the indebtedness secured hereby, Trustee may: reconvey any part of the property; consent to the making of any map or plat thereof; join in granting any easement thereon; or join in any extension agreement or any agreement subordinating the lien or charge hereof. 9. That upon written request of Beneficiary stating that all sums secured hereby have been paid, and upon surrender of this Deed and said note to Trustee for cancellation and retention and upon payment of its fees, Trustee shall reconvey, without warranty, the property then held hereunder. The recitals of such reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof. The grantee in such reconveyance may be described as the “the person or persons legally entitled thereto.” Five years after issuance of such full reconveyance, Trustee may destroy said note and this Deed (unless directed in such request to retain them). 10. That upon default by Trustor in payment of any indebtedness secured hereby or in performance of any agreement hereunder, Beneficiary may declare all sums secured hereby immediately due and payable by delivery to Trustee of written declaration of default and demand for sale and of written notice of default and of election to cause the Property to be sold, which notice Trustee shall cause to be filed for record. Beneficiary also shall deposit with Trustee this Deed, said note and all documents evidencing expenditures secured hereby. After the lapse of such time as may then be required by law following the recordation of said notice of default, and notice of sale having been given as then required by law, Trustee, without demand on Trustor, shall sell the Property at the time and place fixed by it in said notice of sale, either as a whole or in separate parcels, and in such order as it may determine, at public auction to the highest bidder for cash in lawful money of the United States, payable at time of sale. Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale, and from time to time thereafter may postpone such sale by public announcement at the time fixed by the preceding postponement. Trustee shall delivery to such purchaser its deed conveying the property so sold, but without any covenant or warranty, express or implied. The recitals in such deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person, including Trustor, Trustee, or Beneficiary as hereinafter defined, may purchase at such sale. 2017-11-07 Agenda Packet Page 252 4 After deducting all costs, fees and expenses of Trustee and of this Trust, including cost of evidence of title in connection with sale, Trustee shall apply the proceeds of sale to payment of: all sums expended under the terms hereof, not then repaid, with accrued interest at the amount allowed by law in effect at the date hereof; all other sums then secured hereby; and the remainder, if any, to the person or persons legally entitled hereto. 11. Beneficiary, or any successor in ownership of any indebtedness secured hereby, may from time to time, by instrument in writing, substitute a successor or successors to any Trustee named herein or acting hereunder, which instrument, executed by the Beneficiary and duly acknowledged and recorded in the office of the recorder of the county or counties where said property is situated, shall be conclusive proof of proper substitution of each successor Trustee or Trustees, who shall, without conveyance from the Trustee predecessor, succeed to all its title, estate, rights, powers and duties. Said instrument must contain the name of the original Trustor, Trustee and Beneficiary hereunder, the book and page where this Deed is recorded and the name and address of the new Trustee. 12. That this Deed applies to, inures to the benefit of, and binds all parties hereto, their heirs, legatees, devisees, administrators, executors, successors and assigns. The term Beneficiary shall mean the owner and holder, including pledgees, of the note secured hereby, whether or not named as Beneficiary herein. 13. That Trustee accepts this Trust when this Deed, duly executed and acknowledged, is made a public record as provided by law. Trustee is not obligated to notify any party hereto of pending sale under any other Deed or of any action or proceeding in which Trustor, Beneficiary or Trustee shall be a party unless brought by Trustee. 14. This Deed shall be governed by and construed in accordance with the laws of the State of California. 15. In any action or proceeding brought by either Trustor or Beneficiary seeking to enforce the provisions of this Deed, the prevailing party shall be entitled to reasonable attorneys’ fees and court costs in addition to any other costs, damages, or remedies. 16. In the event that any provision of this Deed is declared by any court of competent jurisdiction or any administrative judge to be void or otherwise invalid, all of the other terms, conditions and provisions of this Deed shall remain in full force and effect to the same extent as if that part declared void or invalid had never been incorporated in this Deed and in such form, the remainder of this Deed shall continue to be binding upon Trustor and Beneficiary. 2017-11-07 Agenda Packet Page 253 5 IN WITNESS WHEREOF, Trustor has caused this Deed to be executed as of the day and year first written above. TRUSTOR: SETHI MANAGEMENT INC., a California corporation By: Name: JP Sethi Title: President 2017-11-07 Agenda Packet Page 254 6 ACKNOWLEDGEMENT STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) On , 2017 before me, , Notary Public, personally appeared JP Sethi, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (SEAL) A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which the certificate is attached, and not the truthfulness, accuracy, or validity of that document. 2017-11-07 Agenda Packet Page 255 City of Chula Vista Staff Report File#:17-0408, Item#: 11. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LAND USE AMENDMENT INITIATION REQUEST (IR 17-0018) AND DIRECTING STAFF TO PROCEED WITH THE PROCESSING OF A GENERAL PLAN AMENDMENT ONCE FORMALLY SUBMITTED BY THE APPLICANT FOR A 9.6-ACRE PARCEL LOCATED SOUTHWEST OF THE INTERSECTION OF EASTLAKE DRIVE AND SR-125 RECOMMENDED ACTION Council conduct the public hearing, and adopt the resolution. SUMMARY Mid-City, LLC (the “Applicant”) is requesting a Land Use Amendment Initiation Request in order to get an early read from the City Council regarding a proposed General Plan Amendment to change the land use designation of a 9.6-acre vacant property from its current Open Space (OS) designation to Limited Industrial (IL). The site is currently undeveloped with the exception of San Diego Gas & Electric (SDG&E) power transmission lines that traverse the site from north to south. The Applicant proposes to develop the property with a self-storage facility on the site. 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 activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Environmental Determination Because this activity will not result in any approval or denial of said proposed potential land use plan amendments or rezoning actions and because City Council will conduct a complete review of said proposed potential land use plan amendment 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 California Environmental 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 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 Guidelines. Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION Not Applicable City of Chula Vista Printed on 11/2/2017Page 1 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 256 File#:17-0408, Item#: 11. DISCUSSION Existing Site Characteristics The site is comprised of a 9.6-acre parcel located southwest of Eastlake Drive and SR-125. The topography of the site is gently sloping from north to south. Existing on-site vehicular circulation is limited to a concrete apron located at the northwest corner of the site, which provides access to an existing utility maintenance road within the SDG&E easement that runs across the property north to south on the west side of the site. Background Earlier this year, the City Council approved a new process by which an applicant could request early input from the Planning Commission or City Council regarding a proposed land use plan amendment to the General Plan, Sectional Planning Area Plans, General Development Plans, Specific Plans, and Precise Plans or rezoning of any property within the City of Chula Vista. An Initiation of Amendment process was thereby approved by the adoption of City Council Ordinance Number 3404 on May 23, 2017 and added to the Chula Vista Municipal Code (CVMC) as section 19.14.800 et seq. CVMC section 19.14.840 outlines criteria by which the Planning Commission or City Council may approve said Initiation Request prior to formal submittal of a Land Use Amendment request. Based upon this new process, the Applicant has submitted a request for early input on a proposed General Plan amendment to change the existing land use designation of the subject 9.6-acre vacant parcel from Open space (OS) to Limited Industrial (IL). The Applicant proposes ultimately to develop the site with a new self-storage facility. Entitlement Process The Applicant’s desire is to construct a self-storage facility on the subject site, which would require an amendment to the 2005 General Plan. In addition, this would require a Sectional Planning Area (SPA) Amendment, as well as a Conditional Use Permit (CUP) and Design Review. Findings for Approval of an Initiation of Amendments to Land Use Plans The initiation of an amendment to a Land Use Plan may be approved by the City Council if all of the following criteria are met: (1) The proposed Land Use Amendment is consistent with the goals and polices of the General Plan. (2) The proposed Land Use Plan Amendment 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 The proposed Land Use Amendment would allow for development of a new self-storage facility that would help meet demand for such use by the surrounding community. The proposed use is most consistent with the Limited Industrial Land Use Designation, and would be developed consistent with General Plan Policy LUT4.5, which insures design compatibility with the surrounding neighborhood. Existing public facilities are available to serve the proposed use. 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 ofCity of Chula Vista Printed on 11/2/2017Page 2 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 257 File#:17-0408, Item#: 11. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18705.2(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 Not Applicable CURRENT YEAR FISCAL IMPACT The application fees and processing cost have been paid for by the Applicant. There is no impact to the general fund. ONGOING FISCAL IMPACT Not Applicable ATTACHMENTS 1. Locator Map 2. Applicant’s Justification Report Staff Contact: Jeff Steichen, Associate Planner City of Chula Vista Printed on 11/2/2017Page 3 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 258 2017-11-07 Agenda Packet Page 259 2017-11-07 Agenda Packet Page 260 2017-11-07 Agenda Packet Page 261 2017-11-07 Agenda Packet Page 262 2017-11-07 Agenda Packet Page 263 2017-11-07 Agenda Packet Page 264 2017-11-07 Agenda Packet Page 265 2017-11-07 Agenda Packet Page 266 RESOLUTION NO. 2017- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LAND USE AMENDMENT INITIATION REQUEST (IR 17-0018) AND DIRECTING STAFF TO PROCEED WITH PROCESSING OF A GENERAL PLAN AMENDMENT ONCE FORMALLY SUBMITTED BY THE APPLICANT FOR A 9.6 ACRE PARCEL LOCATED SOUTHWEST OF THE INTERSECTION OF EASTLAKE DRIVE AND SR-125. I. RECITALS WHEREAS, the parcel of land which is the subject matter of this Resolution is depicted in Exhibit “A,” attached hereto and incorporated herein by this reference, and for the purpose of general description consists of 9.6 acres located west and adjacent to SR-125, south of Eastlake Drive, north of St. Germain Drive, consisting of APN 595-070-75, (Project Site); and WHEREAS, on September 12, 2017, a duly verified application requesting approval of a Land Use Amendment Initiation Request was filed with the City of Chula Vista Development Services Department by Mid-City, LLC. (Applicant); and WHEREAS, the Applicant requests approval of a Land Use Amendment Initiation Request to receive early input from the City Council regarding a future proposed General Plan Amendment to allow for future development of a self-storage facility on the Project Site; and WHEREAS, this activity will not result in any approval or denial of a proposed potential land use plan amendment or rezoning action and because City Council will conduct a complete review of said proposed potential land use plan amendment and rezoning action, 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 California Environmental 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 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 Guidelines. Thus, no environmental review is required; and WHEREAS, the City Clerk set the time and place for the public hearing and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City, its mailing to property owners within 500 feet of the exterior boundary of the Project Site at least 10 days prior to the hearing; and WHEREAS, the Chula Vista City Council held a duly noticed public hearing to consider the Land Use Amendment Initiation Request at the time and place as advertised in the Council Chambers, 276 Fourth Avenue. 2017-11-07 Agenda Packet Page 267 Resolution No. 2017- ______ Page 2 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby find and determine as follows: II. INITIATION REQUEST FINDINGS FOR OF APPROVAL 1. That the proposed Land Use Plan Amendment is consistent with the goals and policies of the General Plan. Approval of the Land Use Plan Amendment to change the land use designation from Open Space (OS) to Limited Industrial (IL), in conjunction with other required entitlements, would allow for the future development of a self-storage facility. Said facility would help to meet the need of the surrounding community for adequate storage space. General Plan Objective LUT 1 calls for a balance of residential and non-residential development throughout the City. The provision of a self-storage facility in proximity to residential uses would promote this balance of uses. In addition, the proposed self-storage facility would be designed in such a manner that it would be consistent with Policy LUT 4.5 of the General Plan, which calls for maintaining the character and quality of the surrounding neighborhood. 2. That the proposed Land Use Amendment provides equal or greater public benefit to the community as compared to the existing land use designation, density/intensity range, or plan policy. The Land Use Amendment would allow the development of a new self-storage facility that will fill a current market demand identified by the Applicant for such facilities in the area. The proposed new use would be controlled and restricted by both the language of the required Sectional Planning Area (SPA) Amendment and by the Conditional Use Permit, in order to insure compatibility with surrounding land uses. 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. Adequate public facilities are available to serve the proposed change from OS to IL. Existing public facilities are located north of the site in Eastlake Drive and include sewer and water mains, storm drains and laterals. To the south are existing sewer and water mains in St. Germain Road, which are adequately sized. The proposed layout of the project requires connections to the existing water main in Eastlake Drive and connections to existing water and sewer mains in St. Germain Road. Proposed onsite utilities will be privately maintained. 2017-11-07 Agenda Packet Page 268 Resolution No. 2017- ______ Page 3 BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it hereby approves a Land Use Amendment Initiation Request (IR 17-0018) and directs staff to proceed with processing of a General Plan Amendment for Self Storage Facility once formally submitted by the Applicant as more fully described herein. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this ____ day of ______________, 2017, by the following vote, to-wit: AYES: NOES: ABSENT: ABSTAIN: Presented by:Approved as to form by: ________________________________________________________ Kelly Broughton Glen R. Googins Development Services Director City Attorney 2017-11-07 Agenda Packet Page 269 Resolution No. 2017- ______ Page 4 Exhibit “A” 2017-11-07 Agenda Packet Page 270 Resolution No. 2017- ______ Page 5 2017-11-07 Agenda Packet Page 271 City of Chula Vista Staff Report File#:17-0466, Item#: 12. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LAND USE AMENDMENT INITIATION REQUEST (IR17-0021) AND DIRECTING STAFF TO PROCEED WITH THE PROCESSING OF A GENERAL DEVELOPMENT PLAN AMENDMENT, SECTIONAL PLANNING AREA AMENDMENT, TENTATIVE SUBDIVISION MAP, AND REZONING ON A PORTION OF THE PROPERTY FROM COMMUNITY PURPOSE FACILITY TO SINGLE FAMILY RESIDENTIAL, RETENTION OF EXISTING CHURCH USE, AND PROPOSING ADDITIONAL COMMUNITY PURPOSE USES ONCE FORMALLY SUBMITTED BY THE APPLICANT FOR A 12.2- ACRE SITE LOCATED AT1227 EASTLAKE PARKWAY RECOMMENDED ACTION Council conduct the public hearing and accept the Land Use Amendment request and, should the Council determine that the request is appropriate, direct staff to process the application once submitted. SUMMARY Parkway Hills Church of the Nazarene (Applicant) is requesting a Land Use Amendment Initiation Request in order to get an early read from the City Council regarding a proposed General Development Plan Amendment, Sectional Planning Area Amendment, Tentative Subdivision Map, and Rezoning on a portion of the property, from Community Purpose Facility to Single Family Residential. The site is comprised of one parcel located in the eastern portion of the City of Chula Vista (see Locator Map, Attachment 1). The site is currently developed with the existing church, while the rest of the site remains vacant. Along the southern portion of the site is the San Diego Gas & Electric (SDG&E) power transmission line that travels the site from east to west. The Applicant proposes to rezone a portion of the property for single-family uses, add a dog park, and a soccer field along with the existing church operation. 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 activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Environmental Determination 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 amendment 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 California Environmental Quality Act (CEQA) Guidelines because it will not result in a City of Chula Vista Printed on 11/2/2017Page 1 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 272 File#:17-0466, Item#: 12. 15378 of the California Environmental 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 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 Guidelines. Thus, no environmental review is required. BOARD/COMMISSION RECOMMENDATION Not Applicable DISCUSSION Existing Site Characteristics: The site is comprised of a 12.2 acre parcel located in the eastern portion of the City of Chula Vista (Attachment 1-Location Map). The project site is relatively flat with a gradual slope difference adjacent to the SDGE tower easements to the south and larger slopes around the north and east property lines. Vehicular access is currently provided from a driveway located on Eastlake Parkway. The parcel is surrounded by residential and an elementary school. The only current use of the 12.21 acre site is the Parkway Hills Church of the Nazarene. The remaining portion of the site is unutilized. Background Earlier this year, the City Council approved a new process by which an applicant could request early input from the Planning Commission or City Council regarding a proposed land use plan amendment to the General Plan, Sectional Planning Area Plans, General Development Plans, Specific Plans, and Precise Plans or rezoning of any property within the City of Chula Vista. An Initiation of Amendment process was thereby approved by the adoption of City Council Ordinance Number 3404 on May 23, 2017 and added to the Chula Vista Municipal Code (CVMC) as section 19.14.800 et seq. CVMC section 19.14.840 outlines criteria by which the Planning Commission or City Council may approve said Initiation Request prior to formal submittal of a Land Use Amendment request. Based upon this new process, the Applicant has submitted a request for early input on a proposed General Development Plan Amendment, Sectional Planning Area Amendment, Tentative Subdivision Map, and Rezoning on a portion of the property from Community Purpose Facility to Single Family Residential, retention of existing church uses, and proposing additional community purpose uses. The Applicant proposes ultimately to develop the site with new single-family homes, dog park, and a soccer field, along with the current operation of the existing church. Entitlement Process The Applicant’s desire is to develop the underutilized portion of the site with single-family residential and ancillary uses, in order to generate revenue. The proposal would require an amendment to the General Development Plan (GDP), Sectional Planning Area (SPA) Plan, Rezone, as well as a Tentative Subdivision Map. Findings for Approval of an Initiation of Amendments to Land Use Plans The initiation of an amendment to a Land Use Plan may be approved by the City Council if all of the following criteria are met: (1) The proposed Land Use Amendment is consistent with the goals and polices of the General Plan. (2) The proposed Land Use Plan Amendment provides equal or greater public benefit to the community as compared to the existing land use designation, density/intensity range, or plan policy; City of Chula Vista Printed on 11/2/2017Page 2 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 273 File#:17-0466, Item#: 12. 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. The proposed Land Use Amendment would allow for development of new single-family homes that would help meet the demand for residential housing. The proposed use is most consistent with the Residential Low Medium Land Use Designation, and would be developed consistent with General Plan Policy LUT4.3, which insures design compatibility with the surrounding neighborhood. Existing public facilities are available to serve the proposed use. The request would, however, result in an overall deficit of Community Purpose Facility land available within the community. 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 18705.2(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 Not Applicable CURRENT YEAR FISCAL IMPACT The application fees and processing cost are paid for by the Applicant. There is no impact to the general fund. ONGOING FISCAL IMPACT Not Applicable. ATTACHMENTS 1. Locator Map 2. Applicant’s Justification Letter 3. Plans Staff Contact: Caroline Young City of Chula Vista Printed on 11/2/2017Page 3 of 3 powered by Legistar™2017-11-07 Agenda Packet Page 274 EASTLAKE PWS G R E E N SVIE W D R OLY M PIC P W CLUBHOUSE DR G R E E N R I V E R D RCRYSTAL SPRI NGS DRBAY HILL RD SUN VALLE Y RD S P A N I S H B AY RD H A R B O U R T O W N PLHALF MOON BAY DRSITE SR - 125 -TOLL ROADL:\Gabe Files\Arcmap Locator Template\Locators\IR170021.ai.10.9.17 SCALE:FILE NUMBER: DESCRIPTION: ADDRESS:1127 Eastlake Parkway Related cases: NoneNo Scale IR17-0021 APPLICANT:LOCATOR NORTH LAND USE AMENDMENT INITIATIONParkway Hills Church of Nazarene Summary: Initiation request for the City Council to provide initial input regarding a proposed General Development Plan Amendment, Sectional Planing Amendment, and a Tentative Subdivision Map Rezone. CHULA VISTA DEVELOPMENT SERVICES DEPARTMENT 2017-11-07 Agenda Packet Page 275 2017-11-07 Agenda Packet Page 276 2017-11-07 Agenda Packet Page 277 2017-11-07 Agenda Packet Page 278 2017-11-07 Agenda Packet Page 279 2017-11-07 Agenda Packet Page 280 2017-11-07 Agenda Packet Page 281 2017-11-07 Agenda Packet Page 282 G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G G 2017-11-07 Agenda Packet Page 283 Attachment 2 RESOLUTION NO. IR17-0021 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A LAND USE AMENDMENT INITIATION REQUEST (IR17-0021) AND DIRECTING STAFF TO PROCEED WITH THE PROCESSING OF A GENERAL DEVELOPMENT PLAN AMENDMENT, SECTIONAL PLANNING AREA AMENDMENT, TENTATIVE SUBDIVISION MAP, AND REZONING ON A PORTION OF THE PROPERTY FROM COMMUNITY PURPOSE FACILITY TO SINGLE FAMILY RESIDENTIAL, RETENTION OF EXISTING CHURCH USE, AND PROPOSING ADDITIONAL COMMUNITY PURPOSE USES ONCE FORMALLY SUBMITTED BY THE APPLICANT FOR A 12.2 ACRE SITE LOCATED AT1227 EASTLAKE PARKWAY WHEREAS, the parcel of land that is the subject matter of this Resolution is depicted in Exhibit “A,” attached hereto and incorporated herein by this reference, and for the purpose of general description consists of 12.2 acres located at 1227 Eastlake Parkway, (Project Site); and WHEREAS, on August 16, 2017, a duly verified application for an Initiation Request was filed with the City of Chula Vista Development Services Department by Parkway Hills Church of the Nazarene (Applicant); and WHEREAS, the Applicant seeks to obtain early public notification and input by the City Council of certain future proposed land use plan amendments and rezoning entitlement actions on potential land use revisions; and WHEREAS, 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 amendment 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 California Environmental 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 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 Guidelines. Thus, no environmental review is required; and WHEREAS, the Director of Development Services set the time and place for a hearing on the Initiation Request application, and notice of the hearing, together with it purpose, was given by its publication in a newspaper of general circulation in the City, and its mailing to property owners and residents within 500 feet of the exterior boundaries of the property at least 10 days prior to the hearing; and 2017-11-07 Agenda Packet Page 284 Resolution No. 2017-_____ Page 2 WHEREAS, the hearing was held at the time and place as advertised in the Council Chambers, 276 Fourth Avenue, before the City Council and the hearing was thereafter closed. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it hereby makes the following findings: (1) The proposed Land Use Plan Amendment or rezone is consistent with the goals and policies of the General Plan; For the portion of the site proposed for rezoning from Community Purpose Facility to a residential zone, the current General Plan land use designation is Residential Low Medium. Approval of the Land Use Amendment, in conjunction with other required entitlements, would allow for the future development of single-family homes consistent with the General Plan. Said development would help to meet the need of the surrounding community for additional housing. General Plan Objective LUT 1 calls for a balance of residential and non-residential development throughout the City. The provision of single- family homes in proximity to other uses in the area would promote this balance of uses. In addition, the proposed uses would be designed in such a manner that the site would be consistent with Policy LUT 4.3 of the General Plan, which calls for maintaining the character and quality of the surrounding neighborhood. (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. The Land Use Amendment would allow the development of new single-family homes that will fill a current market demand identified by the Applicant. The General Plan also recognizes the need for more housing to accommodate Chula Vista and the region’s future growth projections. The Housing Element of the General Plan encourages a more diverse and balanced housing through new construction opportunities in eastern Chula Vista. However, the Chula Vista Municipal Code requires all land within a Planned Community (PC) zone to provide adequate land designated as Community Purpose Facilities (CPF) uses to serve the residents of the planned community. The Applicant would be providing some additional community purpose facility uses on the unutilized portion of the site, such as a dog park and a soccer field in addition to maintaining the Church use. However, the land use change to provide the single-family homes would result in a reduction of the overall Community Purpose Facility land available for the Eastlake II Greens Sectional Planning Area. (3) Public facilities are available to serve the proposed change in land use designation or density/intensity, or their provisions will be addressed as a component of the Land Use Plan Amendment or rezoning process. The public facilities provisions will be addressed as a component of the Land Use Amendment or rezoning process. It will address the adequacy of the existing water, sewer, and utilities to potentially serve the future use. Infrastructure is currently in place for the existing church on the site and may be adequate or expanded to provide for the future uses. 2017-11-07 Agenda Packet Page 285 Resolution No. 2017-_____ Page 3 BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it hereby approves a Land Use Amendment Initiation Request (IR17-0021) and directs staff to proceed with processing of a General Development Plan Amendment, Sectional Planning Area Amendment, Tentative Subdivision Map, and Rezoning on a portion of the property from Community Purpose Facility to Single Family Residential as more fully described herein. 2017-11-07 Agenda Packet Page 286 Resolution No. 2017-_____ Page 4 PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, this ____ day of ______________, 2017, by the following vote, to-wit: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mary Salas, Mayor ATTEST: ____________________________ Kerry Bigelow, City Clerk Presented by:Approved as to form by: ______________________________________________ Kelly Broughton Glen R. Googins Director of Development Services City Attorney 2017-11-07 Agenda Packet Page 287 City of Chula Vista Staff Report File#:15-0572, Item#: 13. PRESENTATION OF THE FINAL REPORT ON THE COST RECOVERY, RESOURCE ALLOCATION AND REVENUE ENHANCEMENT STUDY RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CERTAIN SECTIONS OF CHAPTER 7 (RECREATION) OF THE CITY’S MASTER FEE SCHEDULE RECOMMENDED ACTION Council accept the report and adopt the resolution. SUMMARY In 2014, the City of Chula Vista hired a national consultant firm, PROS Consulting Inc., to conduct a Cost Recovery, Resource Allocation and Revenue Enhancement Study in an effort to continually improve and to enhance services and overall organizational effectiveness within the Recreation Department. An analysis of pricing, operational strategies and working methodologies were developed, including a schedule of recommended fees. Staff recommends that the City Council accept the final report and adopt the resolution updating the City’s Master Fee Schedule accordingly. 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 proposed activity has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has been 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. DISCUSSION In June 2014, a project team was established with City staff from the Recreation, Public Works (Operations) and Finance Departments to work with PROS Consulting, Inc. to accomplish the following: ·review current practices and existing policies related to facility reservations and program fee development (cost recovery, core services and revenue sources); ·proactively engage with the community regarding current pricing satisfaction, future potential pricing methodologies, and likelihood of supporting scholarship fund for low-income residents; City of Chula Vista Printed on 11/2/2017Page 1 of 10 powered by Legistar™2017-11-07 Agenda Packet Page 288 File#:15-0572, Item#: 13. ·identify true costs of operations; ·identify opportunities to enhance and leverage the financial resources of the City of Chula Vista in providing recreation facilities and services; ·update the City’s Master Fee Schedule for Recreation Fees (Chapter 7); ·introduce philosophy of service classification (Core/Essential, Important and Value-Added); ·develop a prioritized decision-making roadmap supported by a logical resource allocation model and pricing strategies; and ·develop a dynamic and realistic action plan to recover costs and be financial sustainable. The study and recommendations have taken over 3 years to complete due to a number of factors, including an extended period of time in 2015 in which the Parks & Recreation Commission did not have enough commissioners to have a quorum, scheduling and coordination amongst multiple departments, and continued availability of an outside consultant working on other projects. KEY RECOMMENDATIONS The following recommendations provide guidance for City leadership and the Recreation Department in the implementation of fees, methodologies and practices. Consistent measurement and tracking as well as on-going communication with the community will be critical to ensure success and support in the implementation process. Recommendation #1 - Incorporate Program Based Pricing Philosophy Based on Exclusivity and Levels of Benefit: It is recommended that the City adopt pricing strategies based on exclusivity of use and levels of individual versus community benefit. Staff has developed a comprehensive program classification matrix that categorizes all current offerings in one of three categories based on this Pricing Philosophy. ¨This philosophy ensures core programs have highest level of general fund subsidy while value -added programs have lowest level of general fund subsidy. The following range of cost recovery goals is proposed for program areas that fall in each category. The range of cost recovery goals for each classification was based on nationwide best practices. n Core/Essential Programs (0% - 30% cost recovery) n Important Programs (31% - 70% cost recovery) n Value-Added Programs (71% - 100% cost recovery) The basis for determining where each recreation program should fall is built upon two fundamental values: exclusivity and level of community benefit. The greater the community benefit the more likely it is to be core/essential; the greater the individual benefit the program is likely to be value-added. The model has three tiers (core/essential, important and value-added) which pose a series of questions that help the department determine where each program falls within the stated bands of cost recovery. The series of questions include: 1. Is it part of the mission? 2. Is it expected by the community? 3. Does it serve the broad community or just a small group of people? The answers to these questions helps determine what classification the program should fall under. City of Chula Vista Printed on 11/2/2017Page 2 of 10 powered by Legistar™2017-11-07 Agenda Packet Page 289 File#:15-0572, Item#: 13. The Recreation Department will annually review and update the classification of programs which are consistently offered and will evaluate each new offering using the aforementioned model in determining program classification. The following tables list program classifications for currently or previously offered programs. City of Chula Vista Printed on 11/2/2017Page 3 of 10 powered by Legistar™2017-11-07 Agenda Packet Page 290 File#:15-0572, Item#: 13. Recommendation #2 - Offer Base Prices with Resident and/or Nonprofit Discounts:Create a base fee structure for all offerings and rentals with discounts for residents and nonprofits. The Department would institute a higher base fee for offerings and services but residents (upon providing proof of residency) would receive a resident discount. Nonprofits would also receive discounts upon providing their nonprofit tax ID. ·A resident shall be considered any person residing within the City limits or any person owning property in the City. (“Resident”). In order to qualify for Resident pricing, the Resident must supply proof of residency or property ownership, by one of the following methods: Valid California Driver’s License, or official identification (“I.D.”) card issued by the Department of Motor Vehicles for non-drivers, displaying a City address on the license or I.D.. ·Current year utility bill, in the Resident’s name, for an address within the City. ·Current year property tax statement, in the Resident’s name, for an address within the City. Recommendation #3 - Offer Differential Pricing Rates (Timing / Residency Rates):Establish differential and tiered pricing structures for all offerings. It is an industry best-practice to establish a tiered structure that accounts for differential pricing strategies such as resident / non-resident, prime time / non-prime time, weekday / weekend, quality of the instructor, etc. It, thus, ensures that the pricing accurately reflects the value of the experience received by the users. One component of this should be pricing based on time of use e.g. time of day, and weekday versus Saturday. City of Chula Vista Printed on 11/2/2017Page 4 of 10 powered by Legistar™2017-11-07 Agenda Packet Page 291 File#:15-0572, Item#: 13. Options in pricing of services allow users to pick and choose what components of the service they want and allow staff to provide a tiered range of service offerings. This approach is helpful in the establishment of multi-tiered pricing and allows users to pick and choose what level of quality or quantity they want and will pay for accordingly. Differential pricing options encourage users to move to a classification that best fits their schedule and price point. These pricing options provide opportunities for staff to maximize utilization and revenue generation for facility rentals and program offerings. The pricing options below include some that Chula Vista currently offers and some others that could be evaluated by staff for future offerings. ·Primetime ·Incentive Pricing ·Non-primetime ·Length of Stay Pricing ·Season and Off-season Rates ·Cost Recovery Goal Pricing ·Multi-tiered Program Pricing ·Level of Exclusivity Pricing ·Group Discounting and Packaging ·Age Segment Pricing ·Volume Pricing ·Equipment Pricing Recommendation #4 - Annually Update Cost of Service Model: Continue to track indirect and overhead costs (including custodial, park maintenance, etc.) to identify the true cost of offering a service. Annually update the model with data captured during the year and communicate the cost of service to the staff and users on an on-going basis. The chart below is a sample of the Cost of Service Model identifying the total cost of offering the listed programs, including indirect and overhead costs, as well as listing the cost recovery percentages of the programs, and total cost per unit. PROGRAM AREA CLASSIFICATION Value Added Core Important Benefit Individual Public Public & Individual PROGRAM CATEGORY Adult Sports Pool Activities Preschool PROGRAM CATEGORY Adult Softball League (MSM) Aquatics- Intro. Instructional Levels (Loma Verde) Tiny Tots - Montevalle Revenues 108,315 66,137 28,811 Expenditures: Staff 40,957 41,512 4,318 Outside Services 480 - Supplies & Services 17,082 6,250 175 Facility / Field Use 12,908 6,840 Cost Per Session 58,519 60,670 11,333 Number of Sessions 1 1 4 Program Cost 58,519 60,670 45,332 Total Program Costs 58,519 60,670 45,332 Department Administration 26,169 27,131 20,272 Park Cost 17,742 Custodial Staff - 7,240 6,024 City-Wide Overhead 43,077 44,661 33,370 Total Expenditures 145,507 139,701 104,997 Revenues Over (Under) Expenditures (37,192) (73,564) (76,186) Cost Recovery Direct Program Cost Recovery 185%109%64% Program Cost Recovery with Department Overhead 128%75%44% Total Cost Recovery with City overhead 74%47%27% Units of Participation Teams Individuals Individuals # of Participants 249 2,215 153 Revenue per Participant 435$ 30$ 188$ Program Cost per Participant 235$ 27$ 296$ Total Cost per Participant 584$ 63$ 686$ City of Chula Vista Printed on 11/2/2017Page 5 of 10 powered by Legistar™2017-11-07 Agenda Packet Page 292 File#:15-0572, Item#: 13. PROGRAM AREA CLASSIFICATION Value Added Core Important Benefit Individual Public Public & Individual PROGRAM CATEGORY Adult Sports Pool Activities Preschool PROGRAM CATEGORY Adult Softball League (MSM) Aquatics- Intro. Instructional Levels (Loma Verde) Tiny Tots - Montevalle Revenues 108,315 66,137 28,811 Expenditures: Staff 40,957 41,512 4,318 Outside Services 480 - Supplies & Services 17,082 6,250 175 Facility / Field Use 12,908 6,840 Cost Per Session 58,519 60,670 11,333 Number of Sessions 1 1 4 Program Cost 58,519 60,670 45,332 Total Program Costs 58,519 60,670 45,332 Department Administration 26,169 27,131 20,272 Park Cost 17,742 Custodial Staff - 7,240 6,024 City-Wide Overhead 43,077 44,661 33,370 Total Expenditures 145,507 139,701 104,997 Revenues Over (Under) Expenditures (37,192) (73,564) (76,186) Cost Recovery Direct Program Cost Recovery 185%109%64% Program Cost Recovery with Department Overhead 128%75%44% Total Cost Recovery with City overhead 74%47%27% Units of Participation Teams Individuals Individuals # of Participants 249 2,215 153 Revenue per Participant 435$ 30$ 188$ Program Cost per Participant 235$ 27$ 296$ Total Cost per Participant 584$ 63$ 686$ After identifying the true cost of providing a service, the data is analyzed against the classification of the program and the desired full cost recovery percentage to derive the recommended base fee and recommended resident discounted fee. The chart below reflects the data from the cost of service model in the previous chart. City of Chula Vista Printed on 11/2/2017Page 6 of 10 powered by Legistar™2017-11-07 Agenda Packet Page 293 File#:15-0572, Item#: 13. Recommendation #5 - Incorporate City’s Asset Management Program Into Recreation Fees: A large number of existing parks and facilities as well as amenities within the facilities are aging and are at or near the end of their lifecycles. While the on-going asset lifecycle replacement study will provide clarity on future needs, ensuring a pricing structure that supports long term capital improvement and deferred maintenance is critical to the success of our recreation programs as the population served by the city and the demand for parks and recreation offerings increases. Recommendation #6 - Seek Non-Traditional Funding Sources: More and more parks and recreation agencies are looking to partnerships and creative revenue generating sources as a means to ensure long-term financial sustainability without burdening the existing user base. Pursue new earned income options as a way to ensure greater financial sustainability. Some examples would be to explore sponsorship, naming rights and advertising partnerships or to identify potential crowdfunding projects to be funded through existing platforms, such as Razoo.com, Indiegogo.com, or NRPA’s Fund Your Park Program. Recommendation #7 - Update the City’s Master Fee Schedule - Proposed Fees and Charges: Staff recommends adoption of the Master Fee Schedule amendments to Municipal Code Chapter 7 - Recreation Fees (Attached Resolution with Exhibit 1 - Redline Master Fee Schedule, Chapter 7 - Recreation Fees). BOARD/COMMISSION RECOMMENDATION On September 5, 2017, the Parks & Recreation Commission, voted unanimously in support of the following recommendations: ·Incorporate Program Based Pricing Philosophy Based on Exclusivity and Levels of (Individual versus Community) Benefit ·Offer Base Prices with Resident and/or Nonprofit Discounts ·Offer Differential Pricing Rates (Prime-Time and Non-Prime Time rates) ·Annually Update the Cost of Service Model ·Incorporate City’s Asset Management Program into Recreation Fees ·Seek Non-Traditional Funding Sources ·Update Master Fee Schedule COMMUNITY SURVEY An online survey was administered to the Chula Vista community during the month of April 2015. This survey focused on the level of community support initiating a new fee policy and pricing structure. City of Chula Vista Printed on 11/2/2017Page 7 of 10 powered by Legistar™2017-11-07 Agenda Packet Page 294 File#:15-0572, Item#: 13. survey focused on the level of community support initiating a new fee policy and pricing structure. Staff publicized the availability of the survey and encouraged participation through email blasts through ActiveNet. Additionally, staff printed copies of the survey in English and Spanish and had those available at every recreation center to ensure people had the opportunity to participate in the process. The survey received a total of 1,209 responses which is among the highest response rates the consulting firm has seen nationwide. Over 90% of all respondents were Chula Vista residents so the survey had over 1,000 responses from Chula Vista residents alone. The recommendations are based on the following: ·Community input from public meetings ·1,200+ online survey responses. Surveys were available at recreation facilities in both English and Spanish. ·Comparable information from benchmarked sources ·Available direct, indirect and overhead cost data supplemented by staff assumptions ·Parks and Recreation Commission input ·Iterative staff feedback across multiple departments ·Consultant’s operational experiences and nationwide best practices The meetings and surveys provided community feedback on pricing, operational strategies and working methodologies and help guide the key recommendations. COMMUNITY ENGAGEMENT Chula Vista Recreation staff helped organize six open public meetings in October 2014, September 2015, and October 2017. These meetings were held at Norman Park Senior Center, Montevalle Community Center, and Salt Creek Recreation Center. These meetings were publicized through written invitation letters, email notifications through the Recreation Department’s software system for program registration and facility booking called ActiveNet, publicity at the Centers, social media through the Recreation Department’s and City of Chula Vista’s Facebook pages, and word of mouth. The goal of the meetings was to obtain broad community input and preferences for revenue and pricing strategies including differential pricing, scholarships, non-resident fees and various potential revenue sources. Attendees provided a wide range of opinions and a broad consensus on several key issues during the meetings early in the process. As a result of the final community meetings, there were no objections to the findings and recommendations of this study. CONSISTENT RESERVATION POLICY & PROCESS The following table displays recommendations to be implemented across the Recreation Department to provide consistency in policy and processes regarding facility reservations. These policies and processes are to be included in the Master Fee Schedule update. Policy / Process Implementation Rentals / Facility Use Permits 21 days cancellation notice required Non-refundable Reservation Fee $100 fee applied to permit fees Rental Fee Payment Payment in full, 21 days prior to event date Commercial Vendor Permit (Charged per Vendor) Base Fee ($100) ; Resident Discount ($50) (use of air jump, pony ride, llama ride, petting zoo or similar) Custodial Fee Weekend (Friday-Sunday) and holiday rentals to include $60 non- refundable at all facilities (with annual COLA review) City of Chula Vista Printed on 11/2/2017Page 8 of 10 powered by Legistar™2017-11-07 Agenda Packet Page 295 File#:15-0572, Item#: 13. Policy / Process Implementation Rentals / Facility Use Permits 21 days cancellation notice required Non-refundable Reservation Fee $100 fee applied to permit fees Rental Fee Payment Payment in full, 21 days prior to event date Commercial Vendor Permit (Charged per Vendor) Base Fee ($100) ; Resident Discount ($50) (use of air jump, pony ride, llama ride, petting zoo or similar) Custodial Fee Weekend (Friday-Sunday) and holiday rentals to include $60 non- refundable at all facilities (with annual COLA review) ELIMINATION OF CLEANING/DAMAGE DEPOSITS Through analyzing the cost benefits versus the time spent (indirect expenses) on administering the deposit collection and refunding process, it was found that the costs significantly outweighed the revenue generated from the rare instance that the deposit was retained. Therefore, it is recommended the cleaning/damage deposits for the Recreation facility rentals be eliminated. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site specific and consequently, the 500-foot rule found in California Code of Regulations section 18704.2 (a)(1), is not applicable to this decision. Staff is not independently aware, 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 Cost Recovery, Resource Allocation and Revenue Enhancement Study, has identified opportunities to improve and enhance services and overall organizational effectiveness (Operational Excellence), improve the financial sustainability of the Recreation Department and Public Works Operations of custodial, park maintenance and water (Economic Vitality), evaluated resources and partnership opportunities to provide diversified activities for all to promote healthy lifestyles (Healthy Community), educated the community on recreational opportunities through surveys (Strong and Secure Neighbors) and involved community engagement through meetings with community members and partners (Connected Community). CURRENT YEAR FISCAL IMPACT Fiscal impact for FY 2017-18 will vary based upon program and facility rental volume. Staff recommends the implementation of the proposed fees become effective April 1, 2018, the beginning of the Spring Quarter of FY 2017-18. This recommendation is based on building adequate time to communicate the upcoming change to the community and users who may be impacted by the change. ONGOING FISCAL IMPACT Ongoing fiscal impacts will vary based upon future program and facility rental activity. Future budgets will be adjusted to reflect actual revenue activity. ATTACHMENTS 1. Cost Recovery, Resource Allocation and Revenue Enhancement Study Report 2017 2. Resolution with Exhibit 1 and Exhibit 2 - Redline Master Fee Schedule Section 7-100 and 7- City of Chula Vista Printed on 11/2/2017Page 9 of 10 powered by Legistar™2017-11-07 Agenda Packet Page 296 File#:15-0572, Item#: 13. 2. Resolution with Exhibit 1 and Exhibit 2 - Redline Master Fee Schedule Section 7-100 and 7- 200 (Recreation Fees) Staff Contact: Tim Farmer, Principal Recreation Manager, Recreation Department City of Chula Vista Printed on 11/2/2017Page 10 of 10 powered by Legistar™2017-11-07 Agenda Packet Page 297 2017-11-07 Agenda Packet Page 298 2017-11-07 Agenda Packet Page 299 Cost Recovery, Resource Allocation And Revenue Enhancement Study i Acknowledgements City of Chula Vista Current Parks and Recreation Commission Jan Buddingh Thomas Doyle Hector Fernandez G. Michael German Rennsie Gregorio Maria Garcia-Lopez John Zarem 2015 Parks and Recreation Commission Joseph Boehm Jan Buddingh Maria Garcia-Lopez Israel Garza John Vogel Staff Project Team Kristi McClure Huckaby - Director of Recreation Tim Farmer, Principal Recreation Manager Gil Contreras – Principal Recreation Manager Tiffany Allen, Assistant Director of Development Services Richard A. Hopkins, Director of Public Works Iracsema Quilantan, Assistant Director of Public Works Silvia Cosio, Senior Management Analyst Agnes Bernardo, Parks Operations Manager Consultants PROS Consulting, Inc. Leon Younger – President Neelay Bhatt – Vice President and Principal Consultant Sarah Durham – Project Consultant 2017-11-07 Agenda Packet Page 300 City of Chula Vista ii Table of Contents - EXECUTIVE SUMMARY ....................................................................... 1 CHAPTER ONE 1.1 INTRODUCTION ..................................................................................................................................................................... 1 1.2 PROJECT PROCESS ........................................................................................................................................................... 2 1.3 KEY RECOMMENDATIONS .............................................................................................................................................. 2 1.4 CONCLUSION .......................................................................................................................................................................... 4 - COMMUNITY INPUT ............................................................................ 5 CHAPTER TWO 2.1 PUBLIC MEETING SUMMARY ......................................................................................................................................... 5 2.2 COMMUNITY ON-LINE SURVEY .................................................................................................................................... 6 - COMMUNITY PROFILE ..................................................................12 CHAPTER THREE 3.1 DEMOGRAPHIC ANALYSIS ............................................................................................................................................ 12 3.2 MARKET PROFILE .............................................................................................................................................................. 19 3.3 RECREATION TRENDS ANALYSIS ............................................................................................................................ 21 3.4 BENCHMARK ANALYSIS ................................................................................................................................................. 29 - CLASSIFICATION OF SERVICES ...................................................32 CHAPTER FOUR 4.1 FOUNDATIONAL CONCEPTS........................................................................................................................................ 32 4.2 PARAMETERS FOR CLASSIFYING SERVICE TYPES ...................................................................................... 33 4.3 SERVICE CLASSIFICATION PROCESS ................................................................................................................... 33 - COST OF SERVICE ANALYSIS .........................................................37 CHAPTER FIVE 5.1 COST OF SERVICE ANALYSIS PROCESS ............................................................................................................. 37 5.2 GOAL OF THE COST OF SERVICE ANALYSIS MODEL................................................................................... 37 5.3 SUMMARY OF INITIAL COST OF SERVICE ........................................................................................................... 38 - PRICING POLICY ..................................................................................39 CHAPTER SIX 6.1 PRICING PHILOSOPHY AND POLICY ....................................................................................................................... 39 - IMPLEMENTATION ........................................................................41 CHAPTER SEVEN 7.1 RECOMMENDATIONS ....................................................................................................................................................... 41 - CONCLUSION ..................................................................................55 CHAPTER EIGHT APPENDIX A - FUNDING AND REVENUE STRATEGIES .............................................56 2017-11-07 Agenda Packet Page 301 Cost Recovery, Resource Allocation And Revenue Enhancement Study 1 - EXECUTIVE SUMMARY CHAPTER ONE INTRODUCTION 1.1 The City of Chula Vista Recreation Department (“Department”) undertook a cost recovery, resource allocation and revenue enhancement study to update the existing fee schedule’s fees and charges through a policy and philosophy based approached. This would help to establish a consistent and defensible mechanism to classify offerings based on benefits received by individual users and the community at large. The objective of this plan is not to become a procedural manual or provide recommendations set in stone but rather to serve as a dynamic tool and a philosophical guide to help the staff continue to update procedures associated with cost recovery and pricing. This study is intended to serve as a framework for how the pricing policy will continue to evolve in the future. The alternative pricing strategies and revenue generation resources are suggestions based on successful examples implemented by other park and recreation systems and which the staff indicated they would be interested in pursuing. PROS Consulting Inc. a national management consulting firm located in Indianapolis, IN, which specializes in the parks and recreation industry, has partnered with the Recreation Department, the Public Works Department and city staff in this planning process which included the following steps: 1. Conduct meetings with staff, elected officials and commission members on issues concerning the plan. 2. Benchmark fees and charges and pricing practices with those of other park and recreation agencies. 3. Develop a cost of service model to identify true costs for all offerings. 4. Recommend service classifications for each program as one of the following: core essential, important or value added. 5. Develop cost recovery and policy recommendations based on the service classifications. 2017-11-07 Agenda Packet Page 302 City of Chula Vista 2 PROJECT PROCESS 1.2 KEY RECOMMENDATIONS 1.3 These recommendations are guidelines for the City leadership and the Recreation Department to follow. It is important to keep a flexible approach as it applies to implementation of the recommendations. Consistent measurement and tracking as well as on-going communication with the community will be critical to ensure buy-in for the process. The recommendations are based on the following:  Community input from public meetings  1200+ online and print survey responses in English and Spanish obtained from every recreation facility  Comparable information from benchmarked sources  Available direct, indirect and overhead cost data supplemented by staff assumptions  Parks and Recreation Commission input  Iterative staff feedback across multiple City departments  Consultant’s operational experiences and nationwide best practices How do we classify and manage our services based on our mission, the cultural context of Chula Vista and within the financial realities of our economy? What is the true cost us to perform our services and what are the best methods of managing these costs? What practices and successful strategies are being utilized by arts, recreation and community service systems similar to Chula Vista? What are the recommended cost recovery strategies, to improving the long-term financial viability of the Chula Vista Recreation Department? 2017-11-07 Agenda Packet Page 303 Cost Recovery, Resource Allocation And Revenue Enhancement Study 3 The following are the key recommendations that are outlined in detail in Chapter 6 and Chapter 7 of this report. Key Recommendations 1. Incorporate Program Based Pricing Philosophy Based on Exclusivity and Levels of (Individual versus Community) Benefit 2. Offer Base Prices with Resident and/or Nonprofit Discounts 3. Offer Differential Pricing Rates (Prime-Time and Non-Prime Time rates) 4. Annually Update the Cost of Service Model 5. Incorporate City’s Asset Management Program into Recreation Fees 6. Seek Non-Traditional Funding Sources 7. Update Master Fee Schedule 2017-11-07 Agenda Packet Page 304 City of Chula Vista 4 CONCLUSION 1.4 The key to a successful plan and philosophy centers on knowing the true costs to produce a service or product and using a consistent process to manage, expand or eliminate offerings based on community values and financial goals. The expectation is not that the plan is perfect from the start but that it is realistic and dynamic, thus allowing the staff to continue using and updating it over time. Pricing of services is a dynamic process and complex process. By recommending a consistent philosophy driven by service classifications, cost recovery goals and differential pricing, th e proposed plan supports Council goals and establishes a sustainable process for cost recovery in the future. The pursuit of earned income dollars should continue to be emphasized, and support and training should be provided to staff to ensure the plan’s success in achieving the desired results. Additionally, updating the cost of service model annually will allow staff to reflect revenue and expense updates accurately in the updated Master Fee Schedule. If the recommendations are implemented in their entirety, based on current projections and market conditions, it is realistic to estimate a 5% - 10% increase in as a combination of increased revenue and streamlined expenses (as well as operational efficiencies). This could translate into an impact of $100,000 - $200,000 on the bottom line in the upcoming year, which will go a long way towards helping the Recreation Department achieve increased financial sustainability. The recommendations outlined recognize Chula Vista’s growing and diverse population, the socio- environment and the need to ensure long-term financial sustainability. Lastly, a successful plan implementation requires a focused persistence but also warrants patience in implementing, tracking and modifying strategies based on their success or failure. It is important to bear in mind that this plan is meant to be a guideline that helps elevate the data-driven decision making process of the Recreation Department and thus lead to long-term financial sustainability. Supportive leadership and trained staff who all buy into the collective vision and consistently communicate that vision to all users will be the key to ensuring that the Recreation Department meets the community needs in a financially sustainable manner for years to come. 2017-11-07 Agenda Packet Page 305 Cost Recovery, Resource Allocation And Revenue Enhancement Study 5 - COMMUNITY INPUT CHAPTER TWO PUBLIC MEETING SUMMARY 2.1 Chula Vista staff helped organize open public meetings in October 2014 at two locations: Norman Park Senior Center and Montevalle Community Center. They were also followed by a second round of meetings at the same sites in September 2015. These meetings were publicized by City staff through written invitation letters, email blasts, publicity specifically at the centers and word of mouth. The goal of the first set of meetings was to obtain broad community input and their preferences for a host of revenue and pricing decisions ranging from differential pricing to scholarships and nonresident fees to new revenue sources. The second set of meetings shared initial findings and recommendations in order to gather community feedback and keep them updated with the progress. There were over fifty attendees who expressed a wide range of opinions, and a broad consensus on several key issues. The following table demonstrates the summary findings from the public meetings. Issues Community Feedback Resident / Nonresident pricing Most would support instituting a higher fee structure for nonresidents who use City Services Basic / Intermediate Programs There was a split between those who would and would not support user fee increases based on the advanced/specialized nature of certain programs or services Admin Fee Respondents indicated they would support an administrative fee support if there was assurance that the fees collected would be used towards a specific park or facility, or for maintenance or enhancement of that park or facility Price Discount (Non-prime time) Respondents would support a price discount to attend programs at a less convenient location or time but were uncertain about price increase for prime time slots. Willingness to pay more to create a self- sustaining Scholarship Fund? Yes, a majority of respondents indicated they would support 2017-11-07 Agenda Packet Page 306 City of Chula Vista 6 COMMUNITY ON-LINE SURVEY 2.2 An online survey powered by Survey Monkey was administered to the Chula Vista community during the months of March - April 2015. This survey focused on how supportive the community was of initiating new fee policy and pricing structure. Staff conducted outreach and community engagement via email blasts and online communication. Additionally, staff printed copies of the survey in English and Spanish and had made the copies available at each center to ensure greater access and participation. The survey received a total of 1,209 responses which is among the highest response rates the consulting firm has ever seen and speaks highly of staff’s extensive efforts and an engaged community. Below are summary responses from those surveys, followed by select open ended comments received during the survey process. 2.2.1 ARE YOU A RESIDENT (HAVING MAIL DELIVERED TO AN ADDRESS IN CHULA VISTA)? About 10% of all respondents were nonresidents which means over 1,000 respondents were residents of Chula Vista. This indicates that the survey findings reflect true community findings and represent the audience that the Department and City serves. 90.49% 9.51% Yes No 2017-11-07 Agenda Packet Page 307 Cost Recovery, Resource Allocation And Revenue Enhancement Study 7 2.2.2 WOULD YOU SAY YOU ARE SATISFIED OR DISSATISFIED WITH THE VALUE RECEIVED FOR THE AMOUNT PAID TO RECEIVE CITY OF CHULA VISTA RECREATION SERVICES? The respondents indicated a very high level of satisfaction with the value they received for what they paid. Nearly 80% of all respondents stated that they were somewhat or very satisfied, which compares favorably to results the consultant team has seen nationwide. 2.2.3 I WOULD SUPPORT INSTITUTING A HIGHER FEE STRUCTURE FOR NONRESIDENTS WHO USE CITY OF CHULA VISTA RECREATION SERVICES. Over 70% of all respondents indicated support for higher nonresident fees to be charged while 27% did not support it. However, one must keep in mind that 10% of all respondents were nonresidents hence the opposition to nonresident fee from actual residents is expected to be much less, and indicates a high preference for differential pricing for residents versus nonresidents. 37% 41% 11% 6%5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Very Satisfied Somewhat Satisfied Somewhat Dissatisfied Very Dissatisfied Don't Know or Not Applicable 34%35% 12% 15% 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree Don't Know or Not Applicable 2017-11-07 Agenda Packet Page 308 City of Chula Vista 8 2.2.4 I WOULD SUPPORT A FEE STRUCTURE WHERE THE USER FEE INCREASES BASED ON ADVANCED OR SPECIALIZED NATURE OF THE PROGRAM OR SERVICE. A majority (52%) supported having higher fees for specialized programs versus introductory level programs or services offered by the Department. 2.2.5 I WOULD SUPPORT PAYING A HIGHER PRICE FOR AN INSTRUCTOR WITH SPECIALIZED CREDENTIALS VERSUS AN INSTRUCTOR WITH THE MINIMUM NECESSARY. Over 2/3rds of all respondents (67%) supported having higher fees for instructors with specialized credentials for programs services offered by the Department. This indicates a willingness to pay higher fees based on the quality of the experience offered by a higher quality or specialized instructor. 12% 40% 21%20% 7% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree Don't Know or Not Applicable 23% 44% 16% 12% 5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree Don't Know or Not Applicable 2017-11-07 Agenda Packet Page 309 Cost Recovery, Resource Allocation And Revenue Enhancement Study 9 2.2.6 I WOULD SUPPORT A FEE STRUCTURE THAT INCLUDES AN ADMINISTRATIVE FEE THAT HELPS FUND THE MAINTENANCE OR ENHANCEMENT OF CITY OF CHULA VISTA PARKS, FACILITIES AND PROGRAMS. The results were evenly split between those willing to pay an additional administrative fee to help fund maintenance versus those that were against it and thus it does not appear to be a viable recommendation at this point based on community feedback. 2.2.7 I WOULD SUPPORT A PRICE DISCOUNT TO ATTEND PROGRAMS AT A LESS CONVENIENT LOCATION OR TIME. (EXAMPLE: MUCH LIKE A MOVIE TICKET FOR A MATINEE ACROSS TOWN VS. EVENING AT A CLOSER LOCATION). 13% 36% 24%23% 4% 0% 5% 10% 15% 20% 25% 30% 35% 40% Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree Don't Know or Not Applicable 30% 40% 12%11% 7% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree Don't Know or Not Applicable 2017-11-07 Agenda Packet Page 310 City of Chula Vista 10 2.2.8 I WOULD BE WILLING TO PAY A SLIGHTLY HIGHER FEE TO SUPPORT A SELF-SUSTAINING SCHOLARSHIP FUND THAT WOULD HELP PROVIDE SCHOLARSHIPS FOR THOSE UNABLE TO AFFORD THE CITY’S RE CREATION OFFERINGS. The results were evenly split between those not willing versus those willing to pay a slightly higher fee to help support a self-sustaining scholarship fund to help those who may be unable to afford the offerings. It is important to note that the Recreation Department had a scholarship fund in the past but it was eliminated due to budget cuts. 2.2.9 OPEN ENDED FEEDBACK The following are select comments taken from the open ended survey comment box. Norman Park Senior Center  Great job  Limited pension, retired, no family. Norman Park is a social place for retired persons with limited income. Montevalle Recreation Center  Very reasonable price. Great instructors and staff.  I like it. Everything: price, diversity of activities, all. Loma Verde Recreation Center  I am very happy with the current system! Loma Verde and Parkway Pools  Great services and facility 15% 32% 21% 25% 8% 0% 5% 10% 15% 20% 25% 30% 35% Strongly Agree Somewhat Agree Somewhat Disagree Strongly Disagree Don't Know or Not Applicable 2017-11-07 Agenda Packet Page 311 Cost Recovery, Resource Allocation And Revenue Enhancement Study 11 Heritage Park  Higher costs = less participants  I don't think prices are neither cheap nor expensive. But I truly believe that prices are ok for what Rec. offers.  If the fees increase, I would not be able to participate. I come here because it is affordable. If I wanted someone more expensive, I would take my child somewhere else.  Those who cannot afford these programs already get free preschool!  If prices stay low, there would not be much need for scholarships. We use recreation services because they are priced decent. If prices increase, they would be more than other services in the area (YMCA, after school, etc.) and we may choose those instead. Otay Recreation Center  I take my child to Apples to Zebra for Teacher “___” and Teacher “___”. (names removed to protect privacy) I would pay extra if they were trained with credentials!  I'd be fine with paying a higher price for better equipment.  Pricing is very fair.  Having two girls in sports, we need to make skill development a priority and need coaches who know how to coach. I would be very willing to pay more for this. Also would pay more for girls’ only sports!  If fees go up then class size needs to go down, especially for swim lessons.  I believe we pay higher fees for those classes with independent contractor teachers (art, cooking, certain of the language courses) already. Appreciate those offerings greatly!  Prices are way too much for recreation  Your programs are a gift to our community. You need to charge what you must to sustain good teachers and employees and maintain the facilities. We have greatly appreciated the classes for special needs kids. We have also enjoyed swim lessons and some of your free soccer and basketball classes. We live on very little and are grateful for the reasonable fees for these classes. If you must raise your prices, then do it and God will help those of us that need it.  I think your services are very affordable & that's the reason why so many people enroll in your programs. If you raise those fees, you run the risk of losing a lot of customers, because if your fees are about the same as someone closer to them, they might just go there instead.  I support any raise hike that subsidizes financial aid or education.  I am generally against increased rates of any kind.  I am thankful for the wonderful staff at all the recreational locations. I have always been impressed with dedication and kindness of the instructors my children have been with. Thank you.  I would support a lesser fee for services for residents of Chula Vista for use of recreational facilities 2017-11-07 Agenda Packet Page 312 City of Chula Vista 12 - COMMUNITY PROFILE CHAPTER THREE DEMOGRAPHIC ANALYSIS 3.1 The Demographic Analysis provides an understanding of the population within the City of Chula Vista, California. This analysis is reflective of the total population, and its key characteristics such as age segments, income levels, race, and ethnicity. It is important to note that future projections are all based on historical patterns. Unforeseen circumstances could have a significant bearing on the validity of the final projections. 3.1.1 DEMOGRAPHIC OVERVIEW The total population within the Chula Vista jurisdictional boundary had an increase of approximately 2.7% from 243,916 in 2010 to 250,584 in 2013. The current estimated population is projected to reach 263,637 in 2018, and total 288,259 by 2028. According to the U.S. Census reports, the total number of households has increased by approximately 2%, from 75,515 in 2010 to 77,046 in 2013. The total number of households is expected to grow to 80,668 by 2018 and reach 87,112 by 2028. The city’s median household income of $63,207 is above the state and national averages, while per capita income ($25,279) falls below both averages. Based on the 2010 Census, the population of the Chula Vista is much younger (33.7 years) than the median age of the U.S. (37.2 years). Projections show that the target area will undergo an aging trend, with the 55+ group growing to represent 25.7% of the total population by 2028. The majority of the estimated 2013 population is White Alone (53.28%), with the Some Other Race (20.67%) representing the largest minority, while those of Hispanic/Latino origin represent 59.42% of the populace. Future projections through 2028 expect the White Alone segment to decrease minimally to 51.91% of the total population, followed by the Some Other Race (22.58%) and Asian (14.52%) minorities. The Hispanic ethnicity is forecasted to increase to 65.88% of the total population by 2028. 2017-11-07 Agenda Packet Page 313 Cost Recovery, Resource Allocation And Revenue Enhancement Study 13 3.1.2 METHODOLOGY Demographic data used for the analysis was obtained from U.S. Census Bureau and from Environmental Systems Research Institute, Inc. (ESRI), the largest research and development organization dedicated to Geographical Information Systems (GIS) and specializing in population projections and market trends. All data was acquired in July 2014 and reflects actual numbers as reported in the 2010 Censuses, and estimates for 2013 and 2018 as obtained by ESRI. Straight line linear regression was performed by PROS for the projected 2023 and 2028 demographics. The geographic boundary of the City of Chula Vista was utilized as the demographic analysis boundary shown in Figure 1. Figure 1-Target Area Boundaries 2017-11-07 Agenda Packet Page 314 City of Chula Vista 14 RACE AND ETHNICITY DEFINTIONS The minimum categories for data on race and ethnicity for Federal statistics, program administrative reporting, and civil rights compliance reporting are defined as below. The Census 2010 data on race are not directly comparable with data from the 2000 Census and earlier censuses; caution must be used when interpreting changes in the racial composition of the US population over time. The latest (Census 2010) definitions and nomenclature are used within this analysis.  American Indian – This includes a person having origins in any of the original peoples of North and South America (including Central America), and who maintains tribal affiliation or community attachment  Asian – This includes a person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam  Black – This includes a person having origins in any of the black racial groups of Africa  Native Hawaiian or Other Pacific Islander – This includes a person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands  White – This includes a person having origins in any of the original peoples of Europe, the Middle East, or North Africa  Hispanic or Latino – This is an ethnic distinction, a subset of a race as defined by the Federal Government; this includes a person of Mexican, Puerto Rican, Cuban, South or Central American, or other Spanish culture or origin, regardless of race 2017-11-07 Agenda Packet Page 315 Cost Recovery, Resource Allocation And Revenue Enhancement Study 15 243,916 250,584 263,637 275,859 288,259 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 2010 Census 2013 Estimate 2018 Projection 2023 Projection 2028 Projection City of Chula Vista: Total Population Total Population 3.1.3 CHULA VISTA POPULACE POPULATION The City of Chula Vista has witnessed very little growth in recent years. From 2010 to 2013, the city’s total population experienced an increase of 2.7%, from 243,916 to 250,584. Projecting ahead, the total population of the target area is expected to continue to grow over the next 15 years. Based on ESRI and straight line regression based predictions through 2028, the local population is expected to have approximately 288,259 residents living within 87,112 households. See Figure 2. Figure 2-Total Population 2017-11-07 Agenda Packet Page 316 City of Chula Vista 16 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 Census 2013 Estimate 2018 Projection 2023 Projection 2028 Projection 55+ 35-54 18-34 <18 City of Chula Vista: Population by Age Segments AGE SEGMENT Evaluating the distribution by age segments, the city is somewhat balanced between youth, young adult, family, and senior populations. In 2010, the largest segment by population is the 35-54 group representing 29%, and the smallest is the 55+ segment which constitutes 19.3% of the population. Per ESRI and straight line regressions, over time, the overall composition of the population is projected to undergo an aging trend. Based on the 2013 estimate, the 35-54 segment remains the largest age group, constituting 28% of the population. Future projections through 2028 show that the <18 and 35-54 segments will undergo small decreases in size as compared to the population as a whole, while the 18-34 and 55+ groups will slowly grow. The 55+ group is expected to grow more rapidly than any other segment, with approximately 25.7% of the population by 2028. This will create an even distribution among the four major segments, with the 55+ group representing the largest segment by a narrow margin. This is consistent with general national trends where the 55+ age group has been growing as a result of increased life expectancies and the baby boomer population entering that age group. See Figure 3. Figure 3-Population Age by Segments 2017-11-07 Agenda Packet Page 317 Cost Recovery, Resource Allocation And Revenue Enhancement Study 17 Figure 5 - Hispanic/Latino Population 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 Census 2013 Estimate 2018 Projection 2023 Projection 2028 Projection City of Chula Vista: Population by Race Two or More Races Some Other Race Pacific Islander Asian American Indian Black Alone White Alone 58.24%65.88% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2010 2028 City of Chula Vista: Hispanic/Latino Population All Others Hispanic / Latino Origin (any race) RACE AND ETHNICITY In analyzing race and ethnicity, Chula Vista is fairly diverse. The 2013 estimate shows that 53.28% of the population falls into the White Alone category, while Some Other Race (20.67%) and Asian (14.25%) represent the largest minorities. The Hispanic ethnic group totals 58.24% of the estimated 2013 population. ESRI and straight line regression data projections for 2028 expect the population to remain consistent, as the White Alone decreases slightly to 51.91% and the Some Other Race (22.58%) and Asian (22.58%) minorities undergo minimal increases. Those of Hispanic/Latino Origin are expected to continue an upward growth trend, climbing to 65.88% of the population by 2028. See Figure 4 and 5. Figure 4- Population by Race 2017-11-07 Agenda Packet Page 318 City of Chula Vista 18 $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 2013 Estimate 2018 Projection 2023 Projection 2028 Projection Median Household Income Average Household Income Per Capita Income City of Chula Vista: Household Income Characteristics $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 Median Household Income Per Capita Income City of Chula Vista California U.S. A City of Chula Vista: Comparative Income Characteristics HOUSEHOLDS AND INCOME The City of Chula Vista’s projected income characteristics demonstrate steady growth trends. The median household income is estimated to be $63,207 in 2013 and per capita income is an estimated $25,279. As per ESRI and straight line regression data, household income is projected to grow to $123,517 by 2028, while per capita income will reach $36,079. The median household income represents the earnings of all persons age 16 years or older living together in a housing unit. (Figure 6). As seen in Figure 7, the city’s median household income is above the state ($61,400) average, and is well above the national ($52,762) average. Per capita income falls below the state ($29,511) and national ($27,915) averages. Future predictions expect that both median household Income and per capita income for the area will increase to $123,517 and $36,079, respectively, by 2028. Based on these income characteristics, it is important to ensure a pricing strategy that does not price people out of the market but also focuses on financial sustainability to ensure continued services to these populations. Figure 6- Household Income Characteristics Figure 7- Comparative Income Characteristics 2017-11-07 Agenda Packet Page 319 Cost Recovery, Resource Allocation And Revenue Enhancement Study 19 8.0% 9.9% 17.1% 3.0% 25.0% 9.5% 18.6% 8.9% Education Attained (25+ years old) < 9th Grade 9-12 Grade (No Diploma) High School Graduate GED/Alternative Credential Some College (No Degree) Associate's Degree Bachelor's Degree Graduate/Professional Degree 32.2% 53.7% 5.3% 8.8% Marital Status Never Married Married Widowed Divorced MARKET PROFILE 3.2 3.2.1 LEVEL OF EDUCATION The following chart, based on ESRI data, depicts the education level of adults 25 years and older within the City of Chula Vista. Approximately 82% of residents have at least a GED/alternative credential or high school diploma, and around 28% have a Bachelor’s degree or better. 3.2.2 MARITAL STATUS The chart below, ESRI data, illustrates the marital status among residents of Chula Vista. Nearly 54% of the population is married, while 32% are single and never have married. 2017-11-07 Agenda Packet Page 320 City of Chula Vista 20 90.9% 9.1% Civilian Population in Labor Force (16+ years old) Employed Unemployed Expenditure Avg Spent Total Spent Admission to Sporting Events, excl. Trips $72.85 $5,613,145 Fees for Participant Sports, ecl. Trips $149.75 $11,537,336 Fees for Recreational Lessons $159.69 $12,303,854 Membership Fees for Social/Recreation/Civic Clubs $197.11 $15,186,437 Camp Fees $52.61 $4,053,032 Rental of RVs or Boats $10.08 $776,977 Exercise Equipment and Gear, Game Tables $76.21 $5,871,597 Bicycles $32.45 $2,499,883 Camping Equipment $12.32 $949,533 Hunting and Fishing Equipment $29.04 $2,237,772 Winter Sports Equipment $9.73 $749,303 Water Sports Equipment $7.49 $577,112 Rental/Repair of Sports/Recreation/Exercise Equipment $4.63 $357,104 Recreation Expenditures 3.2.3 UNEMPLOYMENT RATE The following represents the rate of unemployment in the City of Chula Vista as per ESRI data. With just over 9% of residents unemployed, the target area is significantly higher than the national rate. 3.2.4 RECREATION EXPENDITURES (OVERALL – NOT SPECIFIC TO RECREATION DEPARTMENT) The chart below, based on ESRI data, reveals household spending on select recreational activities and equipment within the City of Chula Vista. Total and average spending are based on 77,046 households. As can be seen, a high amount is spent annually on fees for Participant Sports, Recreation lessons and even fees for social, recreation and civic clubs including YMCA, Boys and Girls Clubs, private clubs and instructors as well as city offerings. 2017-11-07 Agenda Packet Page 321 Cost Recovery, Resource Allocation And Revenue Enhancement Study 21 RECREATION TRENDS ANALYSIS 3.3 The following tables summarize the findings from the Sports & Fitness Industry Association’s (SFIA) 2015 Sports, Fitness and Leisure Activities Topline Participation Report, as well as the local market potential index data, which compares the demand for recreational activities and spending of Chula Vista residents to the national averages. While this information will be far more helpful in the Recreation Department’s Needs Assessment process currently underway, these trends help predict demand for types of activities and thus allow the consulting team to make market based pricing recommendations. Summary of National Participatory Trends Analysis 1. Number of “inactives” increased slightly, while “actives” are participating more a. “Inactives” increased 10.6% from 2009 to 2014, from 74.8 million to 82.7 million b. 209 million “actives” are participating more often and in multiple activities 2. Most popular sport and recreational activities a. Fitness Walking (113 million) b. Running/Jogging (51 million) c. Treadmill (50 million) 3. Most participated in team sports a. Basketball (23 million) b. Tennis (18 million) c. Baseball (13 million) 4. Activities most rapidly growing over last five years a. Adventure Racing – up 136% b. Non-traditional/Off-road Triathlon – up 123% c. Squash – up 101% d. Traditional/Road Triathlon – up 92% e. Rugby – up 77% 5. Activities most rapidly declining over last five years a. Wrestling – down 40% b. Touch Football – down 32% c. In-line Roller Skating – down 32% d. Racquetball – down 25% e. Slow-pitch Softball – down 23% 2017-11-07 Agenda Packet Page 322 City of Chula Vista 22 Information released by Sports & Fitness Industry Association’s (SFIA) 201 5 Study of Sports, Fitness, and Leisure Participation reveals that the most popular sport and recreational activities include: fitness walking, running/jogging, treadmill, free weights and road bicycling. Most of these activities appeal to both young and old alike, can be done in most environments, are enjoyed regardless of level of skill, and have minimal economic barriers to entry. These popular activities also have appeal because of the social aspect. For example, although fitness activities are mainly self-directed, people enjoy walking and biking with other individuals because it can offer a degree of camaraderie. Fitness walking has remained the most popular activity of the past decade by a large margin, in terms of total participants. Walking participation during the latest year data was available (2014), reported over 112 million Americans had walked for fitness at least once. From a traditional team sport standpoint, basketball ranks highest among all sports, with approximately 23 million people reportedly participating in 2014. Team sports that have experienced significant growth in participation are rugby, lacrosse, field hockey, ice hockey, roller hockey, and gymnastics – all of which have experienced double digit growth over the last five years. Between 2009 and 2014, the estimated number of “inactives” in America increased by 7.9 million individuals (10.6%), from 74.8 million in 2013 to 82.7 million in 2014. According to the Physical Activity Council, an “inactive” is defined as an individual age 6 and up that doesn’t take part in any “active” sport. Although inactivity was up in 2014, the 209 million “actives” seem to be participating more often and in multiple activities. The Sports & Fitness Industry Association (SFIA) Sports, Fitness & Recreational Activities Topline Participation Report 2014 was utilized to evaluate national sport and fitness participatory trends. SFIA is the number one source for sport and fitness research. The study is based on online interviews carried out in January and February of 2015 from nearly 11,000 individuals and households. NOTE: In 2012, the Sports & Fitness Industry Association (SFIA) came into existence after a two-year strategic review and planning process with a refined mission statement-- “To Promote Sports and Fitness Participation and Industry Vitality”. The SFIA was formerly known as the Sporting Goods Manufacturers Association (SGMA). 2017-11-07 Agenda Packet Page 323 Cost Recovery, Resource Allocation And Revenue Enhancement Study 23 2009 2013 2014 13-14 09-14 Golf 27,103 24,720 24,700 -0.1% -8.9% Basketball 25,131 23,669 23,067 -2.5% -8.2% Tennis 18,546 17,678 17,904 1.3% -3.5% Baseball 14,429 13,284 13,152 -1.0% -8.9% Soccer (Outdoor)13,957 12,726 12,592 -1.1% -9.8% Badminton 7,469 7,150 7,176 0.4% -3.9% Softball (Slow Pitch)9,180 6,868 7,077 3.0% -22.9% Football, Touch 9,726 7,140 6,586 -7.8% -32.3% Volleyball (Court)7,737 6,433 6,304 -2.0% -18.5% Football, Tackle 7,243 6,165 5,978 -3.0% -17.5% Football, Flag 6,932 5,610 5,508 -1.8% -20.5% Volleyball (Sand/Beach) 4,324 4,769 4,651 -2.5% 7.6% Gymnastics 3,952 4,972 4,621 -7.1% 16.9% Soccer (Indoor)4,825 4,803 4,530 -5.7% -6.1% Ultimate Frisbee 4,636 5,077 4,530 -10.8% -2.3% Track and Field 4,480 4,071 4,105 0.8% -8.4% Racquetball 4,784 3,824 3,594 -6.0% -24.9% Cheerleading 3,070 3,235 3,456 6.8% 12.6% Pickleball N/A N/A 2,462 N/A N/A Softball (Fast Pitch)2,476 2,498 2,424 -3.0% -2.1% Ice Hockey 2,018 2,393 2,421 1.2% 20.0% Lacrosse 1,162 1,813 2,011 10.9% 73.1% Wrestling 3,170 1,829 1,891 3.4% -40.3% Roller Hockey 1,427 1,298 1,736 33.7% 21.7% Squash 796 1,414 1,596 12.9% 100.5% Field Hockey 1,092 1,474 1,557 5.6% 42.6% Boxing for Competition N/A 1,134 1,278 12.7% N/A Rugby 720 1,183 1,276 7.9% 77.2% National Participatory Trends - General Sports Activity Participation Levels % Change NOTE: Participation figures are in 000's for the US population ages 6 and over Large Increase (greater than 25%) Moderate Increase (0% to 25%) Moderate Decrease (0% to -25%) Large Decrease (less than -25%) 3.3.1 NATIONAL TRENDS IN GENERAL SPORTS The most heavily participated in sports for 2014 were golf (24.7 million) and basketball (23 million). While both of these activities have seen declining participation levels in recent years, the number of participants for each activity is well above the other activities in the general sports category. The popularity of golf and basketball can be attributed to the ability to compete with relatively small number of participants. Golf also benefits from its wide age segment appeal, and is considered a life-long sport. Basketball’s success can also be attributed to the limited amount of equipment needed to participate and the limited space requirements necessary, which make basketball the only traditional sport that can be played at the majority of American dwellings as a drive-way pickup game. As seen below, since 2009, squash and other niche sports, like lacrosse and rugby, have seen strong growth. Squash has emerged as the overall fastest growing sport, as it has seen participation levels rise by 100% over the last five years. Based on survey findings from 2009-2014, rugby and lacrosse have also experienced significant growth, increasing by 77% and 73% respectively. Other sports with notable growth in participation over the last five years were field hockey (42.6%), roller hockey (21.7%), ice hockey (20%), gymnastics (16.9%), and cheerleading (12.6%). In the last year, the fastest growing sports were roller hockey (33.7%), squash (12.9%), competition boxing (12.7%), lacrosse (10.9%), and rugby (7.9%). During the last five years, the sports that are most rapidly declining include wrestling (40.3% decrease), touch football (down 32.3%), and racquetball (24.9% decrease). In terms of total participants, the most popular activities in the general sports category in 2014 include golf (24.7 million), basketball (23 million), tennis (17.9 million), baseball (13.1 million), and outdoor soccer (12.6 million). Although four out of five of these sports have been declining in recent years, the sheer number of participants demands the continued support of these activities. 2017-11-07 Agenda Packet Page 324 City of Chula Vista 24 2009 2013 2014 13-14 09-14 Swimming (Fitness) N/A 26,354 25,304 -4.0% N/A Aquatic Exercise 8,965 8,483 9,122 7.5% 1.8% Swimming (Competition) N/A 2,638 2,710 2.7% N/A National Participatory Trends - Aquatics Activity Participation Levels % Change NOTE: Participation figures are in 000's for the US population ages 6 and over Large Increase (greater than 25%) Moderate Increase (0% to 25%) Moderate Decrease (0% to -25%) Large Decrease (less than -25%) 3.3.2 NATIONAL TRENDS IN AQUATIC ACTIVITY Swimming is unquestionably a lifetime sport, and activities in aquatics have remained very popular among Americans. Fitness swimming is the absolute leader in multigenerational appeal with over 25 million reported participants in 2013. NOTE: In 2011, recreational swimming was broken into competition and fitness categories in order to better identify key trends. Aquatic Exercise has a strong participation base, and has recently experienced an upward trend. Aquatic exercise has paved the way for a less stressful form of physical activity, allowing similar gains and benefits to land based exercise, including aerobic fitness, resistance training, flexibility, and better balance. Doctors have begun recommending aquatic exercise for injury rehabilitation, mature patients, and patients with bone or joint problems due to the significant reduction of stress placed on weight-bearing joints, bones, muscles, and also the effect of the water in reducing swelling of injurie s. 2017-11-07 Agenda Packet Page 325 Cost Recovery, Resource Allocation And Revenue Enhancement Study 25 2009 2013 2014 13-14 09-14 Fitness Walking 110,882 117,351 112,583 -4.1% 1.5% Running/Jogging 42,511 54,188 51,127 -5.6% 20.3% Treadmill 50,395 48,166 50,241 4.3% -0.3% Free Weights (Hand Weights)N/A 43,164 41,670 -3.5% N/A Weight/Resistant Machines 39,075 36,267 35,841 -1.2% -8.3% Stationary Cycling (Recumbent/Upright) 36,215 35,247 35,693 1.3% -1.4% Stretching 36,299 36,202 35,624 -1.6% -1.9% Free Weights (Dumbells)N/A 32,209 30,767 -4.5% N/A Elliptical Motion Trainer 25,903 27,119 28,025 3.3% 8.2% Free Weights (Barbells)26,595 25,641 25,623 -0.1% -3.7% Yoga 18,934 24,310 25,262 3.9% 33.4% Calisthenics/Bodyweight Exercise N/A N/A 22,390 N/A N/A Aerobics (High Impact)12,771 17,323 19,746 14.0% 54.6% Stair Climbing Machine 13,653 12,642 13,216 4.5% -3.2% Pilates Training 8,770 8,069 8,504 5.4% -3.0% Stationary Cycling (Group)6,762 8,309 8,449 1.7% 24.9% Trail Running 4,845 6,792 7,531 10.9% 55.4% Cross-Training N/A 6,911 6,774 -2.0% N/A Cardio Kickboxing 5,500 6,311 6,747 6.9% 22.7% Martial Arts 6,643 5,314 5,364 0.9% -19.3% Boxing for Fitness N/A 5,251 5,113 -2.6% N/A Tai Chi 3,315 3,469 3,446 -0.7% 4.0% Barre N/A 2,901 3,200 10.3% N/A Triathlon (Traditional/Road)1,148 2,262 2,203 -2.6% 91.9% Triathlon (Non-Traditional/Off Road)634 1,390 1,411 1.5% 122.6% National Participatory Trends - General Fitness Activity Participation Levels % Change NOTE: Participation figures are in 000's for the US population ages 6 and over Legend:Large Increase (greater than 25%) Moderate Increase (0% to 25%) Moderate Decrease (0% to -25%) Large Decrease (less than -25%) 3.3.3 NATIONAL TRENDS IN GENERAL FITNESS National participatory trends in fitness have experienced some strong growth in recent years. Many of these activities have become popular due to an increased interest among people to improve their health by engaging in an active lifestyle. These activities also have very few barriers to entry, which provides a variety of activities that are relatively inexpensive to participate in and can be performed by nearly anyone with no time restrictions. The most popular fitness activity by far is fitness walking, which had over 112.5 million participants in 2013, which was a 2.9% increase from the previous year. Other leading fitness activities based on number of participants include running/jogging (51 million), treadmill (50 million), hand weights (42 million), and weight/resistant machines (36 million). Over the last five years, the activities that grew most rapidly were off-road triathlons (up 123%), road triathlons (up 92%), trail running (up 55%), high impact aerobics (55% increase), and yoga (up 33%). Most recently, from 2013-2014, the largest gains in participation were high impact aerobics (14% increase), trail running (up 11%), and barre (up 10%). 2017-11-07 Agenda Packet Page 326 City of Chula Vista 26 2009 2013 2014 13-14 09-14 Bicycling (Road)39,127 40,888 39,725 -2.8% 1.5% Fishing (Freshwater)40,646 37,796 37,821 0.1% -7.0% Hiking (Day) 32,542 34,378 36,222 5.4% 11.3% Camping (< 1/4 Mile of Vehicle/Home)34,012 29,269 28,660 -2.1% -15.7% Wildlife Viewing (>1/4 Mile of Home/Vehicle) 22,702 21,359 21,110 -1.2% -7.0% Camping (Recreational Vehicle)16,977 14,556 14,633 0.5% -13.8% Birdwatching (>1/4 mile of Vehicle/Home) 13,847 14,152 13,179 -6.9% -4.8% Fishing (Saltwater)13,054 11,790 11,817 0.2% -9.5% Backpacking Overnight 7,757 9,069 10,101 11.4% 30.2% Archery 6,368 7,647 8,435 10.3% 32.5% Bicycling (Mountain)7,367 8,542 8,044 -5.8% 9.2% Hunting (Shotgun)8,611 7,894 7,894 0.0% -8.3% Skateboarding 7,580 6,350 6,582 3.7% -13.2% Roller Skating, In-Line 8,942 6,129 6,061 -1.1% -32.2% Fishing (Fly)5,755 5,878 5,842 -0.6% 1.5% Climbing (Sport/Indoor/Boulder)4,541 4,745 4,536 -4.4% -0.1% Climbing (Traditional/Ice/Mountaineering)2,062 2,319 2,457 6.0% 19.2% Adventure Racing 1,005 2,095 2,368 13.0% 135.6% Bicycling (BMX) 1,858 2,168 2,350 8.4% 26.5% National Participatory Trends - Outdoor Recreation Activity Participation Levels % Change NOTE: Participation figures are in 000's for the US population ages 6 and over Large Increase (greater than 25%) Moderate Increase (0% to 25%) Moderate Decrease (0% to -25%) Large Decrease (less than -25%) 3.3.4 NATIONAL TRENDS IN GENERAL RECREATION Results from the SFIA’s Topline Participation Report demonstrate increased popularity of numerous outdoor recreation activities among Americans. Much like the general fitness activities, these activities encourage a n active lifestyle, can be performed individually or with a group, and are not limited by time restraints. In 2014, the most popular activities in the outdoor recreation category include road bicycling (40 million), freshwater fishing (38 million), and day hiking (36 million). From 2009-2014, outdoor recreation activities that have undergone large increases are adventure racing (up 136%), archery (up 33%), backpacking overnight (up 30%), and BMX bicycling (up 27%). Over the same time frame, activities declining most rapidly were in-line roller skating (down 32%), camping within ¼ mile of home or vehicle (down 16%), and recreational vehicle camping (down 14%). See Figure 11. 2017-11-07 Agenda Packet Page 327 Cost Recovery, Resource Allocation And Revenue Enhancement Study 27 Activity MPI Participated in Baseball 117 Participated in Basketball 109 Participated in Football 102 Participated in Golf 92 Participated in Soccer 132 Participated in Softball 105 Participated in Tennis 104 Participated in Volleyball 105 City of Chula Vista Participatory Trends - General Sports Activity MPI Participated in Aerobics 104 Participated in Jogging/ Running 112 Participated in Pilates 92 Participated in Swimming 98 Participated in Walking for Exercise 101 Participated in Weight Lifting 107 Participated in Yoga 102 City of Chula Vista Participatory Trends - Fitness 3.3.5 CHULA VISTA SPORT AND MARKET POTENTIAL The following charts show sport and leisure market potential data from ESRI. A Market Potential Index (MPI) measures the probable demand for a product or service in the City of Chula Vista. The MPI shows the likelihood that an adult resident of the target area will participate in certain activities when compared to the US National average. The National average MPI is 100, therefore numbers below 100 represent a lower than average participation rate, and numbers above 100 represent higher than average participation rate. The service area is compared to the national average in four (4) categories – general sports, fitness, outdoor activity, and money spent on miscellaneous recreation. Chula Vista demonstrates above average market potential index numbers in all categories. As seen in the tables below, the following sport and leisure trends are most prevalent for Chula Vista residents. Cells highlighted in yellow indicate the top three scoring activities for each category based on the purchasing preferences of residents. GENERAL SPORTS MARKET POTENTIAL FITNESS MARKET POTENTIAL 2017-11-07 Agenda Packet Page 328 City of Chula Vista 28 Activity MPI Participated in Backpacking 104 Participated in Hiking 101 Participated in Bicycling (mountain)101 Participated in Bicycling (road)100 Participated in Boating (Power)82 Participated in Canoeing/Kayaking 73 Participated in Fishing (fresh water)76 Participated in Fishing (salt water)102 Participated in Horseback Riding 105 City of Chula Vista Participatory Trends - Outdoor Activity Activity MPI Spent on sports/rec equipment in last 12 mo: $1-99 96 Spent on sports/rec equipment in last 12 mo: $100-249 96 Spent on sports/rec equipment in last 12 mo: $250+99 Attend sports event 102 Attend sports event: baseball game - MLB reg seas 113 Attend sports event: basketball game (college)95 Attend sports event: basketball game - NBA reg seas 130 Attend sports event: football game (college)108 Attend sports event: football game - NFL Mon/Thurs 111 Attend sports event: football game - NFL weekend 109 Attend sports event: high school sports 92 Attend sports event: ice hockey - NHL reg seas 104 Went on overnight camping trip in last 12 months 92 Visited an indoor water park in last 12 months 108 Visited a theme park in last 12 months 134 Went to zoo in last 12 months 110 City of Chula Vista Participatory Trends - Money Spent on Recreation OUTDOOR ACTIVITY MARKET POTENTIAL MONEY SPENT ON MISCELLANEOUS RECREATION 2017-11-07 Agenda Packet Page 329 Cost Recovery, Resource Allocation And Revenue Enhancement Study 29 BENCHMARK ANALYSIS 3.4 In order to evaluate how Chula Vista’s Recreation Department ranks on program and rental fees, the consulting team in collaboration with staff identified comparable (and best practice) agencies and developed a benchmark matrix to be used. The agencies were all based in Southern California and are ones the City often benchmarks against routinely. Cities included in the benchmark:  Carlsbad  Poway  Escondido  Oceanside The key findings from the benchmark indicate that Chula Vista charges much lower than all comparable agencies. 3.4.1 PROGRAM PRICING EXAMPLES ADULT SOFTBALL The following chart demonstrates program fees for adult softball. By dividing the total program cost by the number of games offered by each benchmark city we are able to figure out cost per game per team. Total cost per game per team include the additional official’s fee. Chula Vista adult softball program prices are among the lowest of the benchmark cities. Chula Vista also has the lowest fee for officials at $12.00. Poway has the highest cost per game per team but do not charge an official fee. R NR R NR Chula Vista 10 Games: $435 Official Fee $12 $43.50 $12 $43.50 $12 $55.50 $55.50 Carlsbad 10 Games: $480 Official Fee: $22 $48.00 $22 $48.00 $22 $70.00 $70.00 Oceanside 10 Games: $450R/$500NR Official Fee: $15 $45 $15 $50 $15 $60.00 $65.00 Escondido 10 Games: $400 Official Fee: $20 $40 $20 $40 $20 $60.00 $60.00 Poway 10 Games: $640*$64 $64 $64.00 $64.00 Agency Total Cost / Game / TeamCost / Game / TeamSoftball *Poway programs are run by Sportsplex USA (public/private partnership). Admission fee of $2.50 per person/per night is not included in these figures 2017-11-07 Agenda Packet Page 330 City of Chula Vista 30 YOUTH BASKETBALL Chula Vista’s youth basketball program total cost per game fees are the second highest fees behind Carlsbad. Escondido fees are the lowest at $6.88 for resident and nonresident. Poway currently does not offer a youth basketball program. TINY TOTS/PRESCHOOL PROGRAM Chula Vista’s tiny tots/preschool program cost per session are among the lowest against the other benchmark agencies. Carlsbad and Poway have the highest cost per session for residents and nonresidents. R NR R NR Chula Vista 10 Games $95 $119 $9.50 $11.90 Carlsbad 10 Games $151.20 $168 $15.12 $16.80 Oceanside 10 Games $80 $90 $8.00 $9.00 Escondido 8 Games $55 $55 $6.88 $6.88 Poway Agency Youth Basketball Cost Total Cost / Game *no municipal program R NR R NR Chula Vista 10 Weeks (20 Sessions)$188 $235 $9.40 $11.75 Carlsbad 4 Weeks (8 sessions)$135 $150 $16.88 $18.75 Oceanside 6 Weeks (12 Sessions)*$151 $161 $12.58 $13.42 Escondido 3 Weeks (9 Sessions)$99 $99 $11.00 $11.00 Poway 4 Weeks (8 sessions)$185 $195 $23.13 $24.38 **$10 material fee due each session Agency Tiny Tots, or Preschool equivalent Cost Cost / Session *$30 material fee due each session 2017-11-07 Agenda Packet Page 331 Cost Recovery, Resource Allocation And Revenue Enhancement Study 31 AQUATIC PROGRAMS The following chart depicts open swim and learn to swim fees for each of the benchmark cities. Each benchmark city is comparable to one another with open swim cost per visit ranging from $2-$5. Chula Vista also offers a 10 visit pass which becomes a better deal for residents and nonresident than compared to any other benchmark cities cost per visit for open swim. Chula Vista again is among the lowest cost per 30 minutes for learn to swim programs. Chula Vista’s resident rates ($3.50-$4.00) cost per 30 minutes is the lowest among all the benchmark and nonresident rates ($5.30- $6.00) are comparable to Escondido ($5.10) and Poway ($5.82). 3.4.2 RENTAL PRICING EXAMPLES Chula Vista’s gymnasium and pool hourly range rates are among the lowest compared to the benchmark cities. The range includes resident and nonresident tiers as well as nonprofit pricing. Chula Vista’s hourly range rates for multipurpose rooms are the highest at $30-$200. The multipurpose room ranges vary greatly due to the room size and amenities included with each room rental. R NR R NR R NR R NR Chula Vista Infant Child Adult Senior Child 10-Pass Adult 10-Pass Senior 10-Pass Free $2 $4 $3 $12 $24 $18 Free $2 $4 $3 $12 $24 $18 Free $2 $4 $3 $1.20 $2.40 $1.80 Free $2 $4 $3 $1.20 $2.40 $1.80 Youth (10 mtgs-30 min) Adult (10 mtgs-30 min) $35 $40 $53 $60 $3.50 $4.00 $5.30 $6.00 Carlsbad Alga Norte Aquatic Center: Youth/Teen Adult Spectator Monroe Street Pool: Youth/Teen Adult $3 $5 $2 $2 $4 $3 $5 $2 $2 $4 $3 $5 $2 $2 $4 $3 $5 $2 $2 $4 Youth (8 mtgs-30 min)$51.30 $57.00 $6.41 $7.13 Oceanside Lap Swim $4 $4 $4 $4 Youth (4 mtgs-30 min)$22 $32 $5.50 $8.00 Escondido Drop-in $3 $3 $3 $3 Youth (4 mtgs-50 min)$34 $34 $5.10 $5.10 Poway Youth/Senior Adult $2 $2.50 $4 $5 $2 $2.50 $4 $5 Adult/Youth (8 mtgs-40 min)$52.00 $62.00 $4.88 $5.82 Cost / VisitCost Cost / 30 minAgencyOpen Swim Learn to Swim Cost Gymnasium Multipurpose Room**Pool Hourly*Hourly*Hourly* Chula Vista $17-$130 $30-$200 $32-$64 Carlsbad $54-$108 $28-$98 $80-$120*** Oceanside $100-$200 $25-$150 $50 Escondido $40-$100 $15-$95 $110-$165 Poway $24-$86 $21-$94 N/A *Rates are inclusive of Resident and Nonresident tiers, as well as Nonprofit **Room size and amenities vary significantly ***Monroe Street Pool only (Alga Norte is $4500-$5500 for 6 hours) Agency 2017-11-07 Agenda Packet Page 332 City of Chula Vista 32 - CLASSIFICATION OF SERVICES CHAPTER FOUR FOUNDATIONAL CONCEPTS 4.1 Classifying services is an important process for an agency to follow in order to remain aligned with the community’s interests and needs, the mission of the organization, and to sustainably operate within the bounds of the financial resources that support it. The criteria utilized and recommended in service classification stems from the concept’s foundation detailed by Dr. John Crompton and Dr. Charles Lamb, two Texas A & M University professors with extensive expertise in marketing strategies for public recreation and park agencies. In their publication, Marketing Government and Social Services, they propose that programs should be evaluated on the criteria of type of service provided, who benefits, and who bears the cost of the program. This concept is illustrated below: The approach taken in this cost recovery project expands classifying services in the following ways:  For whom the program is targeted  For what purpose  For what benefits  For what cost  For what outcome Type of Service •Core/Essential service •Important service •Value Added service Who Benefits? •All the public •Individuals who participate benefit but all members of the community benefit in some way. •Individual who participates Who Pays? •The public through the tax system, no user charges •Individual users pay partial costs •Individual users pay full costs 2017-11-07 Agenda Packet Page 333 Cost Recovery, Resource Allocation And Revenue Enhancement Study 33 PARAMETERS FOR CLASSIFYING SERVICE TYPES 4.2 The first milestone in this project was to develop a classification system for the services and functions of Recreation Department that reflect the obligations of the entire Department, support functions performed, and the value-added services that enrich both the visitor experience and generate revenues in mission-aligned ways to help support operating costs. The results of this process is a summary of classification definitions and criteria, recommended classification of services provided by the Chula Vista Recreation Department, and a recommended range of cost recovery for each service based on these assumptions. Program and service classification is important as financial performance (cost recovery) goals are established for each category of services. These classifications should be aligned with the existing cost recovery levels identified in the Cost of Service model listed in the previous section and then organized to correspond with cost recovery expectations defined for each category. SERVICE CLASSIFICATION PROCESS 4.3 The service classification process consisted of the following steps: 1. Confirm the definition for each classification of service that fits the expectations of the Recreation Department, their ability to meet public needs within the appropriate areas of service, and the mission and core values of the community and the respective areas. 2. Develop criteria that can be used to evaluate each service and function within the Recreation Department, and assign a classification that is defensible and logical. 3. Establish a range of cost recovery that can be attributed to each area listed within the service classifications. The established range can then serve as a target for staff to work towards achieving through a combination of reduced costs, as well as revenues from fees, charges, and non-traditional sources. Service Classification process was iterative with the PROS Consulting team and staff commencing the process in a work session and then refining it through internal discussions until there was consensus on the same. The classifications are not meant to be set in stone. The City should evaluate the classifications annually to ensure congruence with the mission and values as well as the existing financial situation and cost recovery goals. Broad Public Benefit Individual Benefit Value Added User Fees Important Subsidized – Taxes & Fees Core Services Mandated and General Fund-Tax Supported 2017-11-07 Agenda Packet Page 334 City of Chula Vista 34 4.3.1 SERVICE CLASSIFICATION DESCRIPTIONS The service classification matrix below was used in the process described in the previous section. This conceptual framework served as a guide to follow when classifying services and determining how each program should be managed with regard to cost recovery. Clarifying what constitutes a “Core Essential Service”, an “Important Service”, and a “Value Added Service” will provide the Recreation Department and its stakeholders a better understanding of why and how to manage each program area in terms of public value and private value. Additionally, the effectiveness of the criteria linked to performance management expectations relies on the true cost of programs (direct and indirect cost) being identified. Where a program falls within this matrix can help to determine the most appropriate cost recovery rate or a range that should be pursued and measured. CORE ESSENTIAL SERVICES IMPORTANT SERVICES VALUE ADDED SERVICES High Public Expectation High Public Expectation High Individual and Interest Group Expectation Free, Nominal or Fee Tailored to Public Needs Requires Public Funding Fees Cover Some Direct Costs Requires a Balance of Public Funding and a Cost Recovery Target Fees Cover Most Direct and Indirect Costs Some Public Funding as Appropriate Substantial Public Benefit (negative consequence if not provided) Public and Individual Benefit Primarily Individual Benefit Limited or No Alternative Providers Alternative Providers Unable to Meet Demand or Need Alternative Providers Readily Available Open Access by All Open Access / Limited Access to Specific Users Limited Access to Specific Users 2017-11-07 Agenda Packet Page 335 Cost Recovery, Resource Allocation And Revenue Enhancement Study 35 4.3.2 CHULA VISTA RECREATION DEPARTMENT SERVICE CLASSIFICATION MATRIX Using this process from Section 4.3.1, the Recreation Department staff in conjunction with the Consulting team developed the classification of services based on community values and Department mission. These classifications are the basis for future pricing policy decisions and desired cost recovery goals for individual areas. Best practice agencies usually have elected leadership approve these classifications while staff implements fees and charges and revenue strategies to meet the cost recovery goals required for the approved classifications. It is recommended that these classifications be evaluated every one to two years to ensure alignment with community values and the established cost recovery goals. 2017-11-07 Agenda Packet Page 336 City of Chula Vista 36 2017-11-07 Agenda Packet Page 337 Cost Recovery, Resource Allocation And Revenue Enhancement Study 37 - COST OF SERVICE ANALYSIS CHAPTER FIVE The cost-of-service analysis summarizes Chula Vista’s financial information to understand the cost per unit of service or activity, depending on the particular function. Financial and participation (service unit) data were provided by Chula Vista’s Recreation and Public Works staff. Departmental financial data were also supplemented with City cost allocation plan data which identifies each department’s share of the cost for City support services. Additionally, costs for utilities such as water were also included for park amenities such as picnic shelters etc. The City support services costs were subsequently attributed to each division and program. The Direct cost recovery represents the revenues divided by direct program expenditures indicating the highest level of cost recovery. With every additional level of cost (e.g. Department overhead costs, City overhead) added, the overall cost recovery percentage continue to decrease as revenues remain constant. However, this comprehensive structure is the most accurate reflection of the ‘true’ costs of providing the service and the proportion of costs recovered. COST OF SERVICE ANALYSIS PROCESS 5.1 The illustration below depicts the cost of service analysis and allocation process that was followed in this project. GOAL OF THE COST OF SERVICE ANALYSIS MODEL 5.2 It is understood that this model was the first step in identifying the most accurate cost accounting structure and thus, knowing the true cost of offering a program or a service. It is quite common to see agencies that may not have every single level of costs available and, thus, the model helps make valid assumptions to fill the gaps and help staff ensure they can capture those costs moving forward. In order to be successful, Chula Vista must continue to update and refine the model as they move forward. This includes determining accurate units of participation, updating costs at all levels (direct, indirect an d overhead) and tying those to cost recovery goals based on the service classifications agreed to by the City Council. Gather and confirm program and services operating costs Identify appropriate cost of service categories Allocate overall units of participation to categories Estimated cost of service for program services functions 2017-11-07 Agenda Packet Page 338 City of Chula Vista 38 SUMMARY OF INITIAL COST OF SERVICE 5.3 Given below is a sample of summary costs extracted from the Cost of Service model. The entire model is a dynamic excel based model available to the staff for future updates and trend analysis. As seen from the service classification section in Chapter 4, all Adult Softball is established as value-added programs which is expected to have a cost recovery goal of 71% or higher. In addition, per the benchmark analysis in Chapter 3, Chula Vista’s fees are also lower in comparison to most, if not all, the other benchmarked agencies. Thus, a combination of existing cost recovery, proposed service classification (and its associated cost recovery goal) and benchmarked fee and charge data are the factors used in determining future fees and charges recommended in Chapter 7. PROGRAM AREA CLASSIFICATION Value Added Core Important Value Added Important Benefit Individual Public Public & Individual Individual Public & Individual PROGRAM CATEGORY Adult Sports Pool Activities Preschool Special Events Youth Sports PROGRAM CATEGORY Adult Softball League (MSM) Aquatics- Intro. Instructional Levels (Loma Verde) Tiny Tots - Montevalle Community Fun Run - (Fundraiser) Youth Fall Basketball League Revenues 108,315 66,137 28,811 16,925 22,709 Expenditures: Staff 40,957 41,512 4,318 1,613 12,264 Outside Services 480 - 1,500 Supplies & Services 17,082 6,250 175 11,670 2,349 Facility / Field Use 12,908 6,840 10,152 Cost Per Session 58,519 60,670 11,333 14,783 24,765 Number of Sessions 1 1 4 1 1 Program Cost 58,519 60,670 45,332 14,783 24,765 Total Program Costs 58,519 60,670 45,332 14,783 24,765 Department Administration 26,169 27,131 20,272 6,611 11,075 Park Cost 17,742 Custodial Staff - 7,240 6,024 3,485 City-Wide Overhead 43,077 44,661 33,370 10,882 18,230 Total Expenditures 145,507 139,701 104,997 32,276 57,554 Revenues Over (Under) Expenditures (37,192) (73,564) (76,186) (15,351) (34,845) Cost Recovery Direct Program Cost Recovery 185%109%64%114%92% Program Cost Recovery with Department Overhead 128%75%44%79%63% Total Cost Recovery with City overhead 74%47%27%52%39% 2017-11-07 Agenda Packet Page 339 Cost Recovery, Resource Allocation And Revenue Enhancement Study 39 - PRICING POLICY CHAPTER SIX PRICING PHILOSOPHY AND POLICY 6.1 The proposed pricing policy includes the following: 1. A proposed philosophy that focuses on exclusivity of use and the level of benefit (individual versus community benefit) received. 2. A structure that sets fees and charges to recover true cost of service but with resident / nonprofit discounts 3. A consistent implementation of fees and charges based on prime (peak) time and non-prime (non peak) times 4. Standardized policies and procedures including cancellation windows, reservation policies etc. To gain and provide consistency among the City leadership, the Parks and Recreation Commission, user groups, staff, and the community, a philosophical revenue and pricing foundation must be implemented. As changes in pricing strategy and philosophy are implemented, it would be helpful for the staff to incorporate the following five steps in their approach: 6.1.1 PRICE SERVICES TO TH E BENEFITS RECEIVED Using the classification matrix, continue to price services based on the benefits received to offset operating costs. This approach will provide a fair method to distribute resources to the largest number of users of the system. In addition, the Recreation Department should prepare for future changes in government funding that may result as agencies in California and nationwide respond to fiscal realities. 6.1.2 PRICE SERVICES BASED ON COST RECOVERY GOALS WITH PRICING FLEXIBILITY Pricing based on meeting established cost recovery goals will provide a defensible approach to justify staff’s decision making and ensure community and leadership buy-in for a process that is objective and process-driven versus one that may seem more subjective and personality-driven. 6.1.3 PROVIDE USERS’ OPTIONS THROUGH DIFFERENTIAL PRICING Options in pricing of services allow users to pick and choose what components of the service they want to buy and allow staff to provide a tiered range of service offerings. This approach is helpful in the establishment of multi-tiered pricing and allows users to pick and choose what level of quality or quantity they want and will pay for accordingly. Differential pricing options encourage users to move to a classification that best fits their schedule and price point. These pricing options provide opportunities for staff to maximize utilization and revenue generation for facility rentals and program offerings. The pricing options below include some that Chula Vista currently offers and some others that could be evaluated by staff for future offerings.  Primetime  Incentive Pricing  Non-primetime  Length of Stay Pricing  Season and Off-season Rates  Cost Recovery Goal Pricing  Multi-tiered Program Pricing  Level of Exclusivity Pricing  Group Discounting and Packaging  Age Segment Pricing  Volume Pricing  Equipment Pricing 2017-11-07 Agenda Packet Page 340 City of Chula Vista 40 6.1.4 UTILIZE COST ACCOUNTING The Recreation Department will continue developing an activity-based costing that includes direct, indirect (and where possible, overhead) costs for the future. This will determine the cost per experience and level of contribution before the actual pricing of the product or service. An activity based costing process will facilitate efficient decision-making in determining the best method to price the program, activity, rental or service in the most cost effective manner as well as identify programs that may not be able to meet their cost recovery goals as outlined in the program classification matrix. This is an effective process but requires appropriate resources to support data collection, analysis and reporting. 6.1.5 COMMUNICATE TRUE (FULL) COSTS TO ALL USERS In all cases, especially when planning a price change, communicating the true (full) costs of a service or program to all users helps increase their understanding of the value received. Often, users believe that the price or fee they pay accounts for the entire cost of that offering. Marketing and communicating to convey the benefits received and the level of contribution by the City will help aid the users’ understanding of the price changes implemented. Example: The price of your program or service covers the individual benefit associated with the service such as materials and supplies, consumptive goods, exclusive use of the facility, and non-mission related staffing costs associated with providing the service. Recreation Department or this specific program achieves a “_____” recovery rate of the cost to provide services primarily through user fees, while the City’s General Fund covers the remainder. The fees and charges schedule recommended in this report should be periodically reviewed and updated as needed based on the changes that have occurred within the offerings provided. This will help the staff to evaluate which offerings should be adjusted based on the pricing policy or cost recovery goals and also communicate the rationale behind the changes to the users. 2017-11-07 Agenda Packet Page 341 Cost Recovery, Resource Allocation And Revenue Enhancement Study 41 - IMPLEMENTATION CHAPTER SEVEN These recommendations are guidelines for the city leadership and the Recreation department to follow. It is important to keep a flexible approach as it applies to implementation of the recommendations. Consistent measurement and tracking as well as on-going communication with the community will be critical to ensure buy-in for the process. The recommendations are based on the following:  Community input from public meetings  1,200+ online and print survey responses in English and Spanish obtained from every recreation facility  Comparable information from benchmarked sources  Available direct, indirect and overhead cost data supplemented by staff assumptions  Parks and Recreation Commission input  Iterative staff feedback across multiple City departments  Consultant’s operational experiences and nationwide best practices RECOMMENDATIONS 7.1 7.1.1 RECOMMENDATION #1- INCORPORATE PROGRAM BASED PRICING PHILOSOPHY BASED ON EXCLUSIVITY AND LEVELS OF BENEFIT It is recommended that City leadership adopt a pricing philosophy based on exclusivity and levels of individual versus community benefit. This philosophy ensures core programs have highest level of General Fund subsidy while value-added programs have the lowest level of General Fund subsidy with the following range of cost recovery goals for the program areas that fall in each category.  Core Programs (0% - 30% full cost recovery)  Important Programs (31% - 70% full cost recovery)  Value-Added Programs (71% - 100% full cost recovery) 7.1.2 RECOMMENDATION #2- OFFER BASE PRICES WITH RESIDENT AND/OR NONPROFIT DISCOUNTS Create a base fee structure for all offerings and rentals with discounts for residents and/or nonprofits. See below for the definitions of those terms. Fee Terminology Resident Resides within City of Chula Vista and other zip code specific groups (e.g. Bonita) Nonprofit "Nonprofit organization" means an organization organized or incorporated for educational, civic, charitable, religious or cultural purposes, having a bona fide membership, when proceeds, if any, arising from its activities are used for the purposes of such organization and may not be used for the individual benefit of the membership of such organization. Groups are required to submit form with State of California Nonprofit Tax ID number Nonresidents/Commercial This includes anyone who does not fall into the resident or nonprofit category. 2017-11-07 Agenda Packet Page 342 City of Chula Vista 42  A resident shall be considered any person residing within the City limits or any person owning property in the City. (“Resident”). In order to qualify for Resident pricing, the Resident must supply proof of residency or property ownership, by one of the following methods: Valid California Driver’s License, or official identification (“I.D.”) card issued by the Department of Motor Vehicles for non -drivers, displaying a City address on the license or I.D..  Current year utility bill, in the Resident’s name, for an address within the City.  Current year property tax statement, in the Resident’s name, for an address within the City. 7.1.3 RECOMMENDATION #3 – OFFER DIFFERENTIAL PRICING RATES (TIMING / RESIDENCY RATES) Establish differential and tiered pricing structures for all offerings. This is an established practice in the recreation and travel industries (greens fees for twilight golf versus early morning tee-times, air fare pricing etc.) It is a great way to manage facility capacity utilization and provide incentives for people who have flexibility in times to access facilities or rentals when they would otherwise be underutilized. There are a number of differential pricing strategies utilized within the parks and recreation industry as outlined in Section 6.1.3 and shown in the table below. Types of Differential Pricing Strategies  Primetime  Incentive Pricing  Non-primetime  Length of Stay Pricing  Season and Off-season Rates  Cost Recovery Goal Pricing  Multi-tiered Program Pricing  Level of Exclusivity Pricing  Group Discounting and Packaging  Age Segment Pricing  Volume Pricing  Equipment Pricing As further detailed in Chapter 7, it is recommended that staff continue to expand use of differential pricing strategies in Chula Vista based on “timing” of offerings or activities e.g. time of day, weekday versus weekend and regular weekends versus holiday weekends and “resident and / or nonprofit discounts”. Timing Prime Time Non-Prime Time Facilities/Pools 5pm – close (Mon – Fri) / Sat. all day Mon - Fri during the day and Sun. all day 2017-11-07 Agenda Packet Page 343 Cost Recovery, Resource Allocation And Revenue Enhancement Study 43 Resident and / or Nonprofit Fee Tiers Based on the Resident/Nonprofit discount and Prime Time versus Non-Prime Time pricing concepts, the consulting team and staff recommend the following approach of tiered fees and charges as well as resident discounts. Fee Tiers (Programs) Base Fees: Any Nonresident/For-Profit + During Prime Time = Base Fee Resident Discount Fees: Any Resident/Nonprofit Registration + During Prime Time or Any Nonresident/For- Profit + During Non-Prime Time = 75% of Base Fee Fee Tiers (Facility/Pool Use, Rentals) Base Fees: Any Nonresident/For-Profit + During Prime Time = Base Fee (or 100% of Council adopted fee) Resident Discount Fees: Any Resident/Nonprofit Use + During Prime Time or Any Nonresident/Commercial Use + During Non-Prime Time = 50% of Base Fee Super Discount Fees: Any Resident/Nonprofit Use + During Non-Prime Time = 25% of Base Fee 7.1.4 RECOMMENDATION #4 – ANNUALLY UPDATE COST OF SERVICE MODEL Continue to track indirect and overhead costs (including custodial, park maintenance etc.) to identify the true cost of offering recreation services. Annually update the cost of service model with data captured during the year and communicate the cost of service to the staff and users on an on-going basis. Each year, the Recreation Department will review the cost of service model with the Parks and Recreation Commission and, if need be, adjust the policies or existing practices to continue serving the community’s needs in the best way possible. 7.1.5 RECOMMENDATION #5 - INCORPORATE CITY’S A SSET MANAGEMENT PROGRAM INTO RECREATION FEES A large number of existing parks and facilities as well as amenities in those facilities, are aging and at the end of their useful lifecycles. While a pending asset lifecycle replacement study will provide clarity on future needs, ensuring a pricing structure that supports long term capital improvement and maintenance will be critical as the population served by the city increases, and consequently, so does the demand for parks and recreation offerings. 2017-11-07 Agenda Packet Page 344 City of Chula Vista 44 7.1.6 RECOMMENDATION #6 – SEEK NON-TRADITIONAL FUNDING SOURCES More and more parks and recreation agencies are looking to partnerships and creative revenue generating sources as a means to ensure long-term financial sustainability without burdening the existing user base. Pursue new earned income options as a way to ensure greater financial sustainability. The following are some creative sources of revenue that agencies nationwide have been successfully pursuing in recent times. For a detailed list of all funding and revenue strategies based on staff discussions of implementation risk and implementation feasibility, please see the Appendix.  Sponsorships These are typically cash or in-kind fees paid to an agency by a brand or a business in exchange for being able to promote their brand or business through the agency’s offerings (e.g. programs, events or facilities). The City of Dallas recently had a partnership with the Naked Juice Brand for promoting Naked Coconut Water at one of their park sites / walking and biking lanes and Chula Vista is exploring the same as well. (e.g. City of Roseville, CA: Sponsorships for the Utility Exploration Center) https://www.roseville.ca.us/explore/sponsorships.asp  Naming Rights These are a type of advertising where a brand or a business paid a fee to be able to name a venue, park or facility or even an event for a period of years. This can vary from 3-20 years and is a very common practice in the private sector but is also getting more prevalent in the public sector as well. (Lewisville, TX – Toyota of Lewisville Railroad Park) http://www.cityoflewisville.com/index.aspx?page=538 2017-11-07 Agenda Packet Page 345 Cost Recovery, Resource Allocation And Revenue Enhancement Study 45  Crowd-funding Refers to the collection of funds to sustain an initiative from a large pool of backers—the "crowd"— usually made online by means of a web platform. The initiative could be a nonprofit campaign (e.g. to raise funds for a school or social service organization), a philanthropic campaign (e.g. for emergency funds for an ill person or to produce an emerging artist), a commercial campaign (e.g. to create and sell a new product) or a financing campaign for a public agency (capital projects or program / operations related e.g. printing costs for all marketing materials) Crowdfunding models involve a variety of participants. They include the people or organizations that propose the ideas and/or projects to be funded, and the crowd of people who support the proposals. Crowdfunding is then supported by an organization (the "platform") which brings together the project initiator and the crowd. Given below are two examples of the most popular platforms that are currently out there. o www.Fundyourpark.org – Started by the National Recreation and Park Association (NRPA) specifically focused on parks and recreation agencies and crowdfunding their needs for programs and amenities in their communities. o www.Kickstarter.com  The Mountair Park Community Farm to build urban farms in unused City Park Space https://www.kickstarter.com/projects/1255067972/growing-in-the-city-the-mountair-park- community-fa?ref=live  Marketing Support for creating Outdoor Recreation Map https://www.kickstarter.com/projects/403262169/outdoor-recreation-map-of-the-bob-marshall- wildern?ref=live o www.Razoo.com  After-School Programs for Environmental Education http://www.razoo.com/story/Feel- Good-About-Contributing-To-Urban-Sprouts  Local Community Theater Support Group http://www.razoo.com/story/Team-Wang  Community-Led Design Project http://www.razoo.com/story/Hsc-Board-Match-Challenge 2017-11-07 Agenda Packet Page 346 City of Chula Vista 46 Consistency in Policy / Process Implementation Rentals / Facility Use Permits 21 days cancellation notice required Non-refundable Reservation Fee $100 fee applied to permit fees Rental Fee Payment Payment in full, 21 days prior to event date Commercial Vendor Permit (Charged per Vendor) Base Fee ($100) ; Resident Discount ($50) (use of air jump, pony ride, llama ride, petting zoo or similar) Custodial Fee Weekend (Friday-Sunday) and holiday rentals to include $60 non-refundable at all facilities (with opportunity for annual COLA) 7.1.7 RECOMMENDATION # 7 – UPDATE MASTER FEE SCHEDULE - PROPOSED FEES AND CHARGES Update the City’s Master Fee Schedule to include all facility rentals. To ensure consistent approach replace program fees with formula to develop fees based on the program classification, current and desired cost recovery goals e.g. Aquatics program fees are the only ones currently included in the fee schedule Based on the current cost recovery rates, the service classification philosophy, cost recovery goals and staff, the following table shows the proposed processes, recommended policies to be consistently implemented and base fees and charges. The following sections list the sample recommended program fees as well as facility use / rental fees. 2017-11-07 Agenda Packet Page 347 Cost Recovery, Resource Allocation And Revenue Enhancement Study 47 Fitness Centers (quarterly fee for 12 week session) Otay and Salt Creek Centers Resident $20 Non-Resident $40 Norman Park Center Resident $28 Non-Resident $56 Morning Fitness (Otay) Resident $35 Non-resident $70 Shared use $60 Exclusive use $64 Equipment charges Fee per day, per team $3 Maximum monthly fee per team $25 Cancellation fee $75 Non-profit, shared or exclusive use $32 Non-profit, long term shared use $28 Recreation office must be notified of cancellation a minimum of 24 hours prior to scheduled time for swimming pool rental. Failure to do so will result in assessment cancellation fee. 2. Swimming Pools, Rentals, per hour 3. Swimming Pools, Other Charges 4. Swimming Pool, Cancellation Fee SAMPLE PROGRAM FEES Fees for Recreation Department activities and classes shall be set in consideration of the City's full cost including overhead. As recommended in Section 1.3, to ensure consistency, the Master Fee Schedule should include only facility, field and park rentals. As for program fees, shown below is a depiction of the model using the service classification philosophy and existing cost recovery goals to determine recommended program fees including appropriate resident discounts. USE PERMIT – OTHER FACILITIES CURRENT FEES Revenues Current Full Cost Classification Recommended Range Current Full Cost Recovery Percentage Desired Full Cost Recovery Percentage Percentage Change Required to meet Recommended Cost Recovery Current Fee Recommended Resident Discount (25% Discount) Recommended Base Fee RECREATION PROGRAM AND CLASS FEES Adult Softball League (MSM)$108,315 $145,507 Value Added 71% - 100%74%100%26%$435 $411 $548 Aquatics- Learn To Swim Intro.$66,137 $139,701 Core 0% - 30%47%30%-17%$35 $22 $29 Tiny Tots - Montevalle $28,811 $104,997 Important 31% - 70%27%60%33%$188 $188 $250 Community Fun Run - (Fundraiser)$16,925 $32,276 Value Added 71% - 100%52%100%48%$10 $11 $15 Youth Fall Basketball League $22,709 $57,554 Important 31% - 70%39%70%31%$95 $93 $124 2017-11-07 Agenda Packet Page 348 City of Chula Vista 48 PROPOSED FEES USE PERMITS – OTHER PROPOSED CHARGES PROPOSED Base Resident Discounted Rate 1. Cancellation Fee 2. Commercial Vendor Permit Charged per Vendor $100 $50 (use of air jump, pony ride, llama ride, petting zoo or similar) 3. Required Deposits Nonrefundable Reservation Fee $100 4. Custodial Fee, per rental All Facilities (weekends and City holidays only)$60 Recreation office must be notified of cancellation a minimum of 21 days prior to scheduled time for activity. Failure to do so will result in forfeiture of the fee. Applies to General Facilities - Use Permit rentals only. 2017-11-07 Agenda Packet Page 349 Cost Recovery, Resource Allocation And Revenue Enhancement Study 49 II III IV Auditorium/Main Hall $17 $56 $111 Classroom $11 $33 $67 Dance room $11 $33 $67 Kitchen facilities $6 $11 $22 Game room Parkway Gymnasium $17 $65 $130 Small gym Large gym Auditorium/Main Hall $17 $56 $111 Outdoor/stage $17 $56 $111 Craft room $11 $33 $67 Kitchen facilities $6 $11 $22 Cornell Hall - full $111 $222 Cornell Hall - half $56 $111 Game room $10 $20 $40 Conference room Loma Verde Recreation Center Auditorium/Main Hall $17 $56 $111 Classroom $11 $28 $56 Dance room $11 $33 $67 Kitchen facilities $6 $11 $22 Game room $10 $20 $40 Other Recreation Facilities Chula Vista Woman's Club $56 $83 Memorial Bowl (2 hr minimum)$67 $133 Otay Recreation Center Gymnasium $11 $56 $111 Classroom $11 $28 $56 Game room $10 $25 $50 Patio $10 $25 $50 Salt Creek Center Gymnasium - full $30 $65 $130 Gymnasium - half $20 $40 $80 Fitness Center $5 $35 $56 Multipurpose rooms: ~Full (includes kitchen and patio use)$30 $75 $150 ~Half with kitchen $10 $35 $70 Exterior patio only $60 $120 Outdoor basketball court $25 $50 Tennis Court $25 $50 Soccer Arena $25 $50 $100 Game room $10 $20 $40 Facility Parkway Community Center Norman Park Senior Center Heritage Community Center FACILITY FEE SCHEDUL E – PER HOUR CURRENT FACILITY FEES Note: Salt Creek Fitness Center is currently not available to rent. 2017-11-07 Agenda Packet Page 350 City of Chula Vista 50 II III IV Montevalle Center Gymnasium - full $30 $65 $130 Gymnasium - half $20 $40 $80 Multipurpose rooms: ~North $25 $60 $120 ~South $25 $60 $120 ~Middle $15 $40 $80 ~2 room combo $30 $75 $150 ~3 room combo $50 $100 $200 Craft room $15 $40 $80 Dance room $15 $40 $80 Outdoor basketball court $25 $50 Tennis court $25 $50 Game room $10 $20 $40 Interior courtyard $30 $60 Fire pit $40 $80 Exterior "west view" patio $10 $20 Veterans Center Gymnasium - full $30 $65 $130 Gymnasium - half $20 $40 $80 Annex $30 $75 $150 Multipurpose rooms: ~Full $30 $75 $150 ~Half $15 $35 $70 ~Half with kitchen $17 $45 $90 Dance room $15 $40 $80 Game room $10 $20 $40 Sunset View Park Roller hockey facility $50 $100 Equipment Charges for Montvalle, Salt Creek and Veterans Centers Sound system $50 flat fee Lectern $10 flat fee Television/DVD/VCR $50 flat fee Dry erase board $10 flat fee City staff Full cost recovery $16 $18Part-time aquatic staff City staff is provided on an hourly basis, as needed. This charge is in addition to the above hourly rental rates. Part-time Facility 2017-11-07 Agenda Packet Page 351 Cost Recovery, Resource Allocation And Revenue Enhancement Study 51 PROPOSED FACILITY FEES RECREATION PROPOSED Base Fees Resident Discounted Fees Super-Discounted Fees (NR - Non.Res / PT - Prime Time / R - Resident / NPT - Non Prime Time)NR + PT R + PT or NR + NPT R + NPT Prime Time = 5pm - close (M-F) / Saturday - All day; Non Prime Time = M-F during the day / Sunday - All day 100%50%25% Gymnasium - Large $150 $75 $38 Gymnasium - Large Half $95 $48 $24 Main Hall / Gym - Small $130 $65 $33 Kitchen facilities w/MH $25 $13 $6 Classroom $75 $38 $19 Dance room $75 $38 $19 Game room $45 $23 $11 Main Hall (MH)$130 $65 $33 Kitchen facilities w/MH $25 $13 $6 Outdoor Stage $130 $65 $33 Craft room $75 $38 $19 Cornell Hall Full $130 $65 $33 Cornell Hall Half $75 $38 $19 Conference Room $25 $13 $6 Game room $25 $13 $6 Kitchen facilities $25 $13 $6 Main Hall (MH)$130 $65 $33 Classroom $65 $33 $16 Dance room $75 $38 $19 Kitchen facilities w/MH $25 $13 $6 Game room $25 $13 $6 Main Hall (MH)$130 $65 $33 Gymnasium - Full $130 $65 $33 Gymnasium - Half $75 $38 $19 Classroom $60 $30 $15 Patio $55 $28 $14 Game Room $25 $13 $6 Parkway Community Center Heritage Community Center Norman Park Senior Center Loma Verde Recreation Center Chula Vista Woman's Club Otay Recreation Center 2017-11-07 Agenda Packet Page 352 City of Chula Vista 52 RECREATION PROPOSED Base Fees Resident Discounted Fees Super-Discounted Fees (NR - Non.Res / PT - Prime Time / R - Resident / NPT - Non Prime Time)NR + PT R + PT or NR + NPT R + NPT Prime Time = 5pm - close (M-F) / Saturday - All day; Non Prime Time = M-F during the day / Sunday - All day 100%50%25% Gymnasium - Full $150 $75 $38 Gymnasium - Half $95 $48 $24 Multipurpose rooms: - Full (includes kitchen and patio use)$175 $88 $44 - Half with kitchen $80 $40 $20 Game room $45 $23 $11 Montevalle Center Gymnasium - Full $150 $75 $38 Gymnasium - Half $95 $48 $24 Multipurpose rooms: ~North Room (N)$140 $70 $35 ~South Room (S)$140 $70 $35 ~Middle Room (M)$95 $48 $24 ~2 Room Combo $175 $88 $44 ~3 Room Combo (N, M, S)$230 $115 $58 Craft room $95 $48 $24 Dance room $95 $48 $24 Game room $45 $23 $11 Veterans Center Gymnasium - Full $150 $75 $38 Gymnasium - Half $95 $48 $24 Main Hall (MH)$175 $88 $44 Multipurpose rooms: ~Full (kitchen)$175 $88 $44 ~Half $80 $40 $20 ~Half w/ kitchen $105 $53 $26 Dance room $95 $48 $24 Game room $45 $23 $11 Salt Creek Center 2017-11-07 Agenda Packet Page 353 Cost Recovery, Resource Allocation And Revenue Enhancement Study 53 City staff Full cost recovery Part-time $17 Part-time aquatic staff $19 PROPOSED Base Resident Discount Super-Discount (NR - Non.Res / PT - Prime Time / R - Resident / NPT - Non Prime Time)NR + PT R + PT or NR + NPT R + NPT Prime Time = 5pm - close (M-F) / Saturday - All day; Non Prime Time = M-F during the day / Sunday - All day 100%50%25% Shared use $140 $70 $35 Exclusive use $150 $75 $38 Swim Lane Rentals (per lane)$30 $15 $8 Swimming Pools, Rentals, per hour FACILITY Base Resident Discounted Fees Super-Discounted Fees (NR - Non.Res / PT - Prime Time / R - Resident / NPT - Non Prime Time)NR + PT R + PT or NR + NPT R + NPT Prime Time = 5pm - close (M-F) / Saturday - All day; Non Prime Time = M-F during the day / Sunday - All day 100%50%25% Outdoor Courts Basketball Court $55 $28 $14 Tennis Court $55 $28 $14 Salt Creek Community Center Soccer Arena $115 $58 $29 Sunset View Park Roller hockey facility $115 $58 $29 Non-Resident/ For-Profit Resident/ Non-Profit Memorial Bowl $150 $75 Mountain Hawk Park $150 $75 Amphitheaters (per hour) 2017-11-07 Agenda Packet Page 354 City of Chula Vista 54 Non-Resident/ For-Profit Resident/ Non-Profit Larger Inflatable (15 x 15 and / or larger)$150 $75 Food / Gaming Trucks $150 $75 Others Other Proposed Fees Eliminating Deposits Based on discussions with staff and evaluating the cost benefits of the time spent (indirect expenses) on administering the deposit collection and refunding process, it was found that the costs significantly outweighed the revenue generated from the rare instance that the deposit was retained. In addition, it is also an inefficient process resulting in a poor customer experience, and thus, it is recommended that deposit collection in those specific instances be eliminated. Since the renter’s details will also be on file prior to reservation, the Department would always be able to recover costs associated with damages should that situation arise. Non-Resident/ For-Profit Resident/ Non-Profit Small Shelter, Reservation Fee / day $150 $75 Medium Shelter, Reservation fee / day $300 $150 Large Shelter, Reservation Fee / day $600 $300 Cleaning / Damage Deposit $100 $100 Cancellation Fee, all $25 $25 Picnic Shelters Cancellation Fee, 48-hour minimum notice required all shelter reservations Non-Resident/ For-Profit Resident/ Non-Profit Daily $25 $20 Quarterly $250 $200 Active Recreation Areas (Non-sports specific) 2017-11-07 Agenda Packet Page 355 Cost Recovery, Resource Allocation And Revenue Enhancement Study 55 - CONCLUSION CHAPTER EIGHT The key to a successful plan and philosophy centers on knowing the true costs to produce a service or product and using a consistent process to manage, expand or eliminate offerings based on community values and financial goals. The expectation is not that the plan is perfect from the start but that it is realistic and dynamic, thus allowing the staff to continue using and updating it over time. Pricing of services is a dynamic process and complex process. By recommending a consistent philosophy driven by service classifications, cost recovery goals and differential pricing, the proposed plan supports Council goals and establishes a sustainable process for cost recovery in the future. The pursuit of earned income dollars should continue to be emphasized, and support and training should be provided to staff to ensure the plan’s success in achieving the desired results. Additionally, updating the cost of service model annually will allow staff to reflect revenue and expense updates accurately in the updated Master Fee Schedule. If the recommendations are implemented in their entirety, based on current projections and market conditions, it is realistic to estimate a 5% - 10% increase in as a combination of increased revenue and streamlined expenses (as well as operational efficiencies). This could translate into an impact of $100,000 - $200,000 on the bottom line in the upcoming year, which will go a long way towards helping the Department achieve increased financial sustainability. The recommendations outlined recognize Chula Vista’s growing and diverse population, the socio- environment and the need to ensure long-term financial sustainability. Lastly, a successful plan implementation requires a focused persistence but also warrants patience in implementing, tracking and modifying strategies based on their success or failure. It is important to bear in mind that this plan is meant to be a guideline that helps elevate the data-driven decision making process of the Recreation Department and thus lead to long-term financial sustainability. Supportive leadership and trained staff who all buy into the collective vision and consistently communicate that vision to all users will be the key to ensuring that the Recreation Department meets the community needs in a financially sustainable manner for years to come. 2017-11-07 Agenda Packet Page 356 City of Chula Vista 56 APPENDIX A - FUNDING AND REVENUE STRATEGIES REVENUE AND FUNDING STRATEGIES Park and Recreation systems across the United States today have learned to develop a clear understanding of how to manage revenue options to support parks and recreation services in a municipality based on the limited availability of tax dollars. Park and Recreation systems no longer rely on taxes as their sole revenue option but have developed new sources of revenue options to help support capital and operational needs. A growing number of agencies have developed policies on pricing of services, cost recovery rates and partnership agreements for programs and facilities provided to the community. They also have developed strong partnerships that are fair and equitable in the delivery of services based on whom receives the service, for what purpose, for what benefit and for what costs. In addition, agencies have learned to use parks and recreation facilities, amenities, programs and events to create economic development as it applies to keeping property values high around parks and along trails through increased maintenance, adding sports facilities and events to drive tournaments into the region that create hotel room nights and increase expenditures in restaurants and retail areas. They have learned to recognize that people will drive into their community for good recreation facilities such as sports complexes, pools, recreation centers and for special events if presented correctly and if they are well managed. Outlined below are several options for Chula Vista to consider. Some if not all of these sources should be considered as an option to support the capital and operational needs of the department. 2017-11-07 Agenda Packet Page 357 Cost Recovery, Resource Allocation And Revenue Enhancement Study 57 The following chart examines each funding strategy’s implementation feasibility and risk by rating the strategy high, medium, or low. The chart is sorted by strategies beginning at high feasibility with low implementation risk descending to low feasibility with high implementation risk. Funding Strategy Currently Practicing Corporate Sponsorships High Low Crowdfunding High Low Friends Groups High Low Mello Roos District High Low Reservations High Low Equipment Rental High Low Lighting and Landscape District High Low Private Concessionaires Management High Low Advertising Sales High Low Partnerships High Medium Volunteerism High Medium Dedication/Development Fees High Medium Permits (Special Use Permits)High Medium CDBG Funding High Medium Property Taxes High Medium Naming Rights High Medium Private Developers High Medium Pouring Rights High Medium Special Fundraisers Medium Medium Impact Fees Medium Medium Food and Beverage Tax Medium Medium Capital Fees Low Low Land Trust Low Low Hotel, Motel and Restaurant Tax Low Low Private Donations Low Low Irrevocable Remainder Trusts Low Low Special Improvement District/Benefit District Low Medium Recreation Service Fees Low High Foundations/Gifts Low High Implementation Feasibility Implementation Risk 2017-11-07 Agenda Packet Page 358 City of Chula Vista 58 FUNDING SOURCES The following financial options outline opportunities for the department to consider in supporting capital improvements as well as operational costs associated with managing the system for the future. EXTERNAL FUNDING  Corporate Sponsorships - This revenue-funding source allows corporations to invest in the development or enhancement of new or existing facilities in park systems. Sponsorships are also highly used for programs and events. o Notes: Consider for Dog Parks but in an unobtrusive way o Example: Charleston County Parks and Recreation (http://www.ccprc.com/index.aspx?NID=5) as well as establishing frameworks for sustained sponsorship opportunities by providing packaged choices of offerings - City of Santa Barbara (http://www.santabarbaraca.gov/gov/depts/parksrec/recreation/sponsor_opportunities.asp).  Crowdfunding - Fairly new web-based source which aggregates funds from a group of people who are willing to support a specific project, be it program related or facility related. Some sites that successfully do that are www.kickstarter.org and www.razoo.com etc. o Notes: Determine appropriate programs / capital updates  Partnerships - Partnerships are joint development funding sources or operational funding sources between two separate agencies, such as two government entities, a nonprofit and a City department, or a private business and a City agency. Two partners jointly develop revenue producing park and recreation facilities and share risk, operational costs, responsibilities and asset management, based on the strengths and weaknesses of each partner. o Notes: Uncertainty for multi-year partnerships already budgeted for. o Example: A relevant example includes the Muskingum Recreation Center being developed in Zanesville, Ohio which is a partnership between t he Muskingum County Community Foundation (MCCF), the Muskingum Family Y (MFY), Genesis HealthCare System and Ohio University Zanesville (OUZ) (http://www.muskingumrecreationcenter.org/).  Foundations / Gifts - These dollars are raised from tax-exempt, nonprofit organizations established with private donations in promotion of specific causes, activities, or issues. They offer a variety of means to fund capital projects, including capital campaigns, gifts catalogs, fundraisers, endowments, sales of items, etc. o Notes: Not enough internal capacity to focus on Foundations / Gif ts  Private Donations - Private Donations may also be received in the form of funds, land, facilities, recreation equipment, art or in-kind services. Donations from local and regional businesses as sponsors for events or facilities should be pursued.  Friends Groups - These groups are formed to raise money typically for a single focus purpose that could include a park facility or program that will better the community as a whole and their special interest. o Notes: Similar to the Library and Police, to focus on O&M and Capital opportunities  Irrevocable Remainder Trusts - These trusts are set up with individuals who typically have more than a million dollars in wealth. They will leave a portion of their wealth to the city in a trust fund that allows the fund to grow over a period of time and then is available for the city to use a portion of the interest to support specific park and recreation facilities or programs that are designated by the trustee. 2017-11-07 Agenda Packet Page 359 Cost Recovery, Resource Allocation And Revenue Enhancement Study 59  Volunteerism - The revenue source is an indirect revenue source in that persons donate time to assist the department in providing a product or service on an hourly basis. This reduces the city’s cost in providing the service plus it builds advocacy into the system. o Notes: The Department has a large number of volunteers across multiple programs. They are also tracked through Vologistics software system in Human Resources. o Example: The City of San José Parks, Recreation and Neighborhood Services has leveraged a very unique volunteer relationship by utilizing graduates from The Harvard Business School to identify potential sponsorship value of its inventory and craft a compelling message for potential sponsors – all on a pro-bono basis (http://www.hbsanc.org/cp_home.html?aid=1142). There could certainly be potential opportunities of this sort with any of the educational institutions including Mira Costa College, Palomar Community College, or University of California San Diego.  Special Fundraisers - Many park and recreation agencies have special fundraisers on an annual basis to help cover specific programs and capital projects. o Notes: Community Fun Run, City Amateur Golf Tournament are fundraisers for the Department and they are looking to start fundraisers / giveaways at Movies in the Parks - all done through the Friends Group. CAPITAL FEES  Capital Fees - Capital fees are added to the cost of revenue producing facilities such as golf courses, pools, recreation centers, hospitality centers and sports complexes.  Dedication/Development Fees - These fees are assessed for the development of residential properties with the proceeds to be used for parks and recreation purposes, such as open space acquisitions, community park site development, neighborhood park development, regional park acquisition and development, etc. o Notes: The City is going through the PAD fees / Developers building turnkey parks - projects  Impact Fees - These fees are on top of the set user rate for accessing facilities such as golf courses, recreation centers and pool facilities to support capital improvements that benefit the user of the facility. o Notes: User feedback from the Chula Vista community often emphasized ensuring that dollars generated are spent on facility specific infrastructure issues  Mello Roos District - Fees for a specific purpose with an election approving district and fees by 2/3 majority. o Notes: This is already being done in Chula Vista. USER FEES  Recreation Service Fees - This is a dedicated user fee, which can be established by a local ordinance or other government procedures for the purpose of constructing and maintaining recreation facilities. The fee can apply to all organized activities, which require a reservation of some type or other purposes, as defined by the local government. Examples of such activities include adult basketball, volleyball, tennis, and softball leagues, youth baseball, soccer, football and softball leagues, and special interest classes. The fee allows participants an opportunity to contribute toward the upkeep of the facilities being used. 2017-11-07 Agenda Packet Page 360 City of Chula Vista 60 o Notes: Focus on across the board impact fee not just targeting organized groups.  Fees / Charges – The Department must position its fees and charges to be market-driven and based on both public and private facilities. The potential outcome of revenue generation is consistent with national trends pointing to generating an average 35% to 50% of operating expenditures for combined parks and recreation agencies. o Notes: The current fee study is aimed towards specifically addressing these.  Permits (Special Use Permits) - These special permits allow individuals to use specific park property for financial gain. The city either receives a set amount of money or a percentage of the gross service that is being provided. o Notes: These are currently in place system-wide.  Reservations - This revenue source comes from the right to reserve specific public property for a set amount of time. The reservation rates are usually set and apply to group picnic shelters, meeting rooms for weddings, reunions and outings or other types of facilities for special activities. o Notes: These need to be consistent and reflect the exclusivity it provides – which is a recommendation made in Section 1.4  Equipment Rental - The revenue source is available on the rental of equipment such as tables, chairs, tents, stages, bicycles, roller blades, boogie boards, etc. that are used for recreation purposes. o Notes: Currently, the pools in Chula Vista do provide equipment rentals. GRANTS  CDBG Funding - Funding received in accordance with the Community Development Block Grant (CDBG) Programs national objectives as established by the U.S Department of Housing and Urban Development. Funding may be applied to such programs as Infrastructure Improvements, Public Facility and Park Improvements, Human Service Enhancements, Lead-Based Paint Education and Reduction, Housing Education Assistance, and Economic Development and Anti-poverty strategies. o Notes: This is prone to change and, thus, not a predictable source for the future. It is currently availed for Norman Park Senior Center Operational hours and Therapeutic Recreation Programs.  Land Trust - Many systems have developed land trusts to help secure and fund the cost for acquiring land that needs to be preserved and protected for greenway purposes. This could be a good source to look to for acquisition of future lands. TAX SUPPO RT  Property Tax- Ad valorem taxes on real property  Lighting and Landscape Districts - Special property owner approved assessment o Notes: Evaluating creating a maintenance District; eastside park Stylus Park - developer responsible for 50% of the maintenance / annually.  Hotel, Motel, and Restaurant Tax. - Tax based on gross receipts from charges and meal services, which may be used to build and operate sports fields, regional parks, golf courses, tennis courts, and other special park and recreation facilities. o Notes: Could evaluate for future eastside development / hotels.  Special Improvement District / Benefit District - Taxing districts established to provide funds for certain types of improvements that benefit a specific group of affected properties. Improvements may 2017-11-07 Agenda Packet Page 361 Cost Recovery, Resource Allocation And Revenue Enhancement Study 61 include landscaping, the erection of fountains, and acquisition of art, and supplemental services for improvement and promotion, including recreation and cultural enhancements.  Food and Beverage Tax - The tax is usually associated with convention and tourism bureaus. However, since parks and recreation agencies manage many of the tourism attractions, they receive a portion of this funding source for operational or capital expenses. o Notes: Evaluate potential for Bayfront Convention Center to be built. FRANCHISES AND LICENSES  Pouring Rights - Private soft drink companies that execute agreements with the City for exclusive pouring rights within park facilities. A portion of the gross sales goes back to the City. The City of Westfield, IN just signed a 10 year, $2 million pouring rights deal at their sports complex with Pepsi. o Notes: Potential to consider for future sports complex development or in conjunction with the former Chula Vista Olympic Training Center now named the Chula Vista Elite Athlete Training Facility, a USOC Olympic and Paralympic Training Site  Private Concession Management - Contract with a private business to provide and operate desirable recreational activities financed, constructed and operated by the private sector, with additional compensation paid to the City. o Notes: It is currently very minimal but the city has taken a step in that direction with Point Loma Trust and with future development could be an increasingly viable opportunity for the department.  Naming Rights – Many cities and counties have turned to selling the naming rights for new buildings or renovation of existing buildings and parks for the development cost associated with the improvement. o Notes: Evaluate potential for existing facilities / youth sports etc. Example: Many cities and counties have turned to selling the naming rights for new constructions of facilities or parks as a way to pay for the development and, occasionally, costs associated with the project. A great example of this was in Lewisville, Texas where the city signed a 10 year naming rights deal with a local Toyota dealership for their signatu re community park which opened in 2009 and includes multiple sports fields, a dog park, skate park, walking and jogging trails, three lakes for irrigation etc. (http://www.cityoflewisville.com/index.aspx?page=538).  Private Developers - These developers lease space from City-owned land through a subordinate lease that pays out a set dollar amount plus a percentage of gross dollars for recreation enhancements. These could include a golf course, marina, restaurants, driving ranges, sports complexes, equestrian facilities, recreation centers and ice arenas.  Advertising Sales - This revenue source is for the sale of tasteful and appropriate advertising on park and recreation related items such as in the city’s program guide, on scoreboards, dasher boards and other visible products or services that are consumable or permanent that exposes the product or service to many people. 2017-11-07 Agenda Packet Page 362 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CERTAIN SECTIONS OF CHAPTER 7 (RECREATION) OF THE CITY’S MASTER FEE SCHEDULE WHEREAS, the City of Chula Vista hired a national consultant firm, PROS Consulting Inc., to conduct a Cost Recovery, Resource Allocation and Revenue Enhancement Study; and WHEREAS, a project team was established with City staff from the Recreation, Public Works (Operations) and Finance Departments to work with PROS Consulting to review current practices and existing policies, identify true costs of operations and organizational sustainability, and develop a dynamic and realistic action plan to recover costs and be financial sustainable; and WHEREAS the Cost Recovery, Resource Allocation and Revenue Enhancement Study prepared by PROS Consulting Inc. resulted in an analysis of pricing and operational strategies and working methodologies were developed, including a schedule of recommended fees; and WHEREAS, it is recommended that the City adopt pricing strategies for programs based on exclusivity of use and levels of individual versus community benefit; and WHEREAS, this philosophy serves the public interest by ensuring that core programs have the highest level of general fund subsidy while value-added programs have the lowest level of general fund subsidy; and WHEREAS, programs will be categorized into classifications based on cost recovery goals as Core/Essential Programs (0% - 30% cost recovery), Important Programs (31% - 70% cost recovery), and Value-Added Programs (71% - 100% cost recovery); and WHEREAS, it is recommended that the City offer base prices with resident and/or non- profit discounts; and WHEREAS, it is recommended that the City offer differential and tiered pricing rates for all offerings; and WHEREAS, a tiered pricing structure that accounts for differential pricing strategies such as resident/non-resident, prime time/non-prime time, quality of instructor, and length of stay pricing ensures the pricing accurately reflects the value of the experience and accounts for elasticity of demand, as noted in the considerations of the Citywide Cost Recovery Policy 159- 03; and WHEREAS, it is recommended that the Recreation Department annually update the cost of service model, continuing to track direct, indirect and overhead costs to identify the true cost of offering a service; and 2017-11-07 Agenda Packet Page 363 WHEREAS, after identifying the true cost of providing a service, the data will be analyzed against the classification of the program and the desired full cost recovery percentage to derive the recommended base fee and recommended resident discounted fee; and WHEREAS, it is recommended that the City seek non-traditional funding sources, such as exploring sponsorship opportunities, naming rights, or identifying potential crowdfunding projects; and WHEREAS, as identified in the Citywide Cost Recovery Policy 159-03, the target cost recovery goals for the Recreation Department will remain 30% - 70%; and WHEREAS, the proposed fees do not exceed the estimated reasonable cost of providing the associated services; and WHEREAS, Article XIII C of the California Constitution requires a vote of the electorate to increase any levy, charge, or exaction imposed by a local government, unless specifically exempted; and WHEREAS, pursuant to the provisions of Article XIII, the proposed fees are exempt from the vote requirement; WHEREAS, the proposed amendments to the Master Fee Schedule Chapter 7 shall not become effective until April 1, 2018, the beginning of the Spring Quarter of fiscal year 2017-18. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby amend certain sections of Chapter 7 (Recreation) of the City’s Master Fee Schedule as reflected on Exhibits 1 and 2 to this Resolution. Presented by Approved as to form by Tim Farmer Glen R. Googins Principal Recreation Manager City Attorney 2017-11-07 Agenda Packet Page 364 MASTER FEE SCHEDULE FEE BULLETIN Chapter 7 – Recreation Fees 7-100 General & Program Fees City of Chula Vista Recreation Department 276 Fourth Avenue, Chula Vista, CA 91910 June 2011April 2018 City of Chula Vista www.chulavistaca.gov 619.409.5979 NON-RESIDENT POLICYFEE TIERS & DEFINITIONS Fees for various Recreation Department programs and classes shall be composed of fees applying to legal residents of the City of Chula Vista and fees for non-residents. The City of Chula Vista (“City”) employs a differential pricing system to Recreation Fees, based upon program offering, timing, customer residency, and for-profit status. For each fee item, a base fee is adopted, with subsequent discounts applied based upon these factors. The following tiered pricing strategy, including definitions, applies to Master Fee Schedule Bulletins 7-100 and 7-200, and may be incorporated into additional Fee Bulletins by reference. Definitions 1. Prime Time Monday – Friday ……………………………….5 p.m. to close Saturday………………………………………………………..All day 2. Non-Prime Time Monday – Friday.……………………………..Open to 5 p.m. Sunday…………………………………………………………..All day 3. Resident A resident shall be considered any person residing within the City limits, or any person owning property in the City (“Resident”). In order to qualify for Resident pricing, the Resident must supply proof of residency or property ownership, by one of the following methods:. The resident and non-resident fee schedules apply to Master Fee Schedule Fee Bulletin 7-100. A. Valid California Driver’s License, or official identification (“I.D.”) card issued by the Department of Motor Vehicles for non-drivers, displaying a City address on the license or I.D.. B. Current year utility bill, in the Resident’s name, for an address within the City. C. Current year property tax statement, in the Resident’s name, for an address within the City. 4. Non-profit Non-profit generally means an organization organized or incorporated for educational, civic, charitable, religious, or cultural purposes, having a bona fide membership, where proceeds, if any, arising from its activities are used for the purpose of such organization and may not be used for the individual benefit of the membership of such organization. In order to qualify for Non-profit pricing, proof of non-profit status must be provided in the form of a current State of California Non-profit Tax ID number. 5. For-profit For-profit means any organization that fails to qualify as non-profit per the above definition, or any individual, operating a commercial enterprise for purpose of monetary gain and utilizing City facilities for that purpose, regardless of residency status. PROGRAM FEES - AQUATICS 1. Aquatic Classes, fee per participant Fees for aquatic programs and classes are based upon the equivalent of a 5 hour session. Resident Summer: Learn to Swim ........................................ $35 Summer: Tiny Tots Swimming .............................. $35 Summer: Parents & Tots Swimming ..................... $35 Spring – Fall: Learn to Swim .................................. $30 Spring – Fall: Tiny Tots Swimming ........................ $30 Spring – Fall: Parents & Tots Swimming ............... $30 Adult Lessons ........................................................ $40 Private Lessons ............................................ $40/hour Non-Resident Summer: Learn to Swim ........................................ $53 Summer: Tiny Tots Swimming .............................. $53 Summer: Parents & Tots Swimming ..................... $53 Spring – Fall: Learn to Swim .................................. $45 Spring – Fall: Tiny Tots Swimming ........................ $45 2017-11-07 Agenda Packet Page 365 June 2011A MASTER FEE SCHEDULE  FEE BULLETIN 7-100 Page 2 of 2 City of Chula Vista www.chulavistaca.gov 619.409.5979 Spring – Fall: Parents & Tots Swimming ............... $45 Adult Lessons ........................................................ $60 Private Lessons ...................................... Not available 2. Pool Passes Daily Admission Fee Senior (55+) ........................................................ $3.00 Adult................................................................... $4.00 Child (4 – 17 yrs) ................................................ $2.00 Infant (6 mos – 3 yrs) ..........................Free with adult Ten Swim Pass Senior (55+) ........................................................... $18 Adult...................................................................... $24 Child (4 – 17 yrs) ................................................... $12 Twenty Swim Pass Senior (55+) ........................................................... $24 Adult...................................................................... $32 Child (4 – 17 yrs) ................................................... $16 PROGRAM FEES – OTHER The Base Fees for Recreation Department activities and classes shall be set in consideration of the City’s full cost including overhead. Non-resident surcharge for activities and classes will be 25%., adjusted to reflect cost recovery targets by program area. Full cost shall be calculated by program as follows: A. Estimated personnel costs (direct cost) B. Estimated contracted service costs (direct cost) C. Estimated supplies and services costs (direct cost) D. Allocated park maintenance costs (overhead costs) E. Allocated facility maintenance costs (overhead costs) F. Allocated citywide support cost (overhead costs) Cost recovery target categories include: 1. Core Programs (0% - 30% cost recovery) 2. Important Programs (31% - 70% cost recovery) 3. Value-Added Programs (71% - 100% cost recovery) See City Council Policy 159-03 for current cost recovery targets by service area/program. Program-level fee schedules are adopted administratively in accordance with the above provisions. Please contact the Recreation Department for current program fees. 2017-11-07 Agenda Packet Page 366 MASTER FEE SCHEDULE FEE BULLETIN Chapter 7 – Recreation Fees 7-200 Facility Use Fees City of Chula Vista Recreation Department 276 Fourth Avenue, Chula Vista, CA 91910 July 2011April 2018 City of Chula Vista www.chulavistaca.gov 619.409.5979 Recreation facilities are available to groups only when City programs are not scheduled. Policies and regulations governing facility use permits are provided in Council Resolution 12343. An employee or City- appointed representative must be present during use of listed facilities. GENERAL FACILITIES – USE PERMIT Prime Time (PT) Non-Prime Time (NPT) Resident (R) or Non-profit (NP) 50% of Base Rate 25% of Base Rate Non-Resident (NR) or For- profit (FP) 100% of Base Rate 50% of Base Rate 1. Group Priorities Facilities are available for recreation activities under the following order of priority based on group classification. Non-resident surcharge is 100%. Classification 1: City programs. Non-resident surcharge not applicable to City sponsored uses. Classification 2: Chula Vista community service organizations related in purpose to recreation and the furtherance of community leisure programs. Classification 3: Chula Vista civic and social organizations which are democratic in character with membership open to the general public or designated elements thereof. Classification 4: Private resident groups requiring large facilities for special events not open to the general public. If applicant is a Chula Vista resident, the non-resident surcharge does not apply. Classification 5: Unions, employee associations and special recreational groups and non-residential groups requiring public facilities 2. Basic Fee Schedule The Basic Fee is based on the group’s classification as described in Section 1 for Classifications 2 through 6, and includes a Facility Use Fee and an Hourly Staff Fee. 2017-11-07 Agenda Packet Page 367 July 2011April 2018 MASTER FEE SCHEDULE  FEE BULLETIN 7-200 Page 2 of 7 City of Chula Vista www.chulavistaca.gov 619.409.5979 The Facility Use Fee is charged on an hourly rental rate basis, per the schedules below. Hourly Staff Fees are also charged, at the prevailing hourly staff rate, for any activities requiring supervision, room or facility set-up, or custodial services. There is an additional charge if special services are required. There is no charge for groups in Classification 1. Facility Use – Fee Schedule I Community organizations in Classification 2 or 3 shall be granted use of facilities without charge if no additional staff is required and if any admissions fee/contribution is not collected. If additional staff is required, the community organization will be charged prevailing hourly staff fees. Facility Use – Fee Schedule II Community organizations in Classification 2 or 3 can use facilities on an actual cost basis if a contribution/fee is assessed for charitable purposes. Actual costs consist of hourly staff fees for personnel and a minimum utility charge as shown in Fee Schedule II on the reverse of this bulletin. Facility Use – Fee Schedule III Resident organizations and individuals in Classification 4 not qualifying for Fee Schedule I or II will be assessed the Facility Use Fee shown in Fee Schedule III, plus the Hourly Staff Fee (Fee Schedule II). Facility Use – Fee Schedule IV Those individuals or groups in Classification 5 and 6 will be assessed the Facility Use Fee based on Fee Schedule IV, or 30% of gross receipts, whichever is greater, plus the Hourly Staff Fee (Fee Schedule II). A financial report must be submitted one week after the activity is held if an admission fee was charged. If applicant is a Chula Vista resident, the Non- resident surcharge will not apply. Non-resident surcharge will be applied to fee, or 30% of gross receipts, as applicable. FACILITY FEE SCHEDULE (PER HOUR) FACILITY NR or FP at PT 100% R or NP at PT / NR or FP at NPT 50% R or NP at NPT 25% Parkway Community Center Auditorium/Main HallGymnasium – Large $171 50 $567 5 $1113 8 Gymnasium – Large Half $95 $48 $24 Main Hall/Gym – Small (MH) $130 $65 $33 Kitchen facilities w/MH $25 $13 $6 Classroom $117 5 $383 $1967 Dance room $117 5 $383 $1967 Kitchen facilities Game room $456 $231 1 $1122 Heritage Community Center Auditorium/Main Hall (MH) $171 30 $655 6 $3311 1 Outdoor/stageKitchen facilities w/MH $251 7 $135 6 $6111 Craft room Outdoor Stage $130 11 $653 3 $3367 Kitchen facilitiesCraft Room $756 $381 1 $1922 Norman Park Senior Center Cornell Hall - fFull $130 $651 11 $3322 2 Cornell Hall - hHalf $75 $385 6 $1911 1 Game room Conference Room $251 0 $132 0 $640 Kitchen facilities $25 $13 $6 Game room $25 $13 $6 Loma Verde Recreation Center Auditorium/Main Hall (MH) $171 30 $655 6 $3311 1 Classroom $651 1 $332 8 $1656 Dance room $751 1 $383 3 $1967 Kitchen facilities w/MH $256 $131 1 $622 Game room $251 0 $132 0 $640 2017-11-07 Agenda Packet Page 368 July 2011April 2018 MASTER FEE SCHEDULE  FEE BULLETIN 7-200 Page 3 of 7 City of Chula Vista www.chulavistaca.gov 619.409.5979 Other Recreation FacilitiesChula Vista Woman’s Club Parkway GymnasiumMain Hall (MH) $130 17 $656 5 $3313 0 Chula Vista Women’s Club $83 $56 Memorial Bowl (2 hr minimum) $67 $133 Otay Recreation Center Gymnasium – Full $111 30 $655 6 $3311 1 Gymnasium – Half $75 $38 $19 Classroom $601 1 $302 8 $1556 Game room $251 0 $132 5 $650 Patio $551 0 $282 5 $1450 Salt Creek Center Gymnasium – Ffull $301 50 $657 5 $1303 8 Gymnasium – Hhalf $209 5 $404 8 $8024 Multipurpose rooms ~ -Full1 (includes kitchen & patio) $301 75 $758 8 $1504 4 ~ -Half with kitchen $108 0 $354 0 $7020 Exterior patio only2 $60 $120 Outdoor basketball court $25 $50 Tennis Court $25 $50 Soccer Arena $25 $50 $100 Equipment ~ Sound system $50 flat fee ~ Lectern $10 flat fee ~ Television/DVD/VCR $50 flat fee ~ Dry erase board $10 flat fee Game room $1045 $2023 $4011 FACILITY FEE SCHEDULE (PER HOUR) FACILITY II III IV Montevalle Center Gymnasium - full – Full $ 3015 0 $ 7565 $3813 0 Gymnasium – hHalf $209 5 $ 4048 $8024 Multipurpose rooms ~ -North $251 40 $706 0 $3512 0 ~ -South $251 40 $706 0 $3512 0 ~ -Middle $951 5 $404 8 $8024 ~ -2 room combo $3017 5 $7588 $150 44 ~ -3 room combo $5023 0 $1001 15 $200 58 Craft room $159 5 $4048 $802 4 Dance room $159 5 $4048 $802 4 Interior courtyard3 $30 $60 Fire pit4 $40 $80 Exterior “west view” patio5 $10 $20 Outdoor basketball court $25 $50 Tennis court $25 $ 50 Equipment ~ Sound system $50 flat fee ~ Lectern $10 flat fee ~ Television/DVD/VCR $50 flat fee ~ Dry erase board $10 flat fee Game room $104 5 $2023 $401 1 Veterans Center Gymnasium – fullFull $ 3015 0 $ 7565 $381 30 Gymnasium – halfHalf $952 0 $4840 $248 0 AnnexMain Hall (MH) $175 30 $8875 $441 50 Multipurpose rooms ~ -Full w/kitchen $175 30 $8875 $441 50 ~ -Half $801 5 $4035 $207 0 ~ -Half w/ kitchen $105 17 $5345 $269 0 Dance room $951 5 $4840 $248 0 Courtyard6 $0 $0 Equipment ~ Sound system $50 flat fee ~ Lectern $10 flat fee ~ Television/DVD/VCR $50 flat fee 2017-11-07 Agenda Packet Page 369 July 2011April 2018 MASTER FEE SCHEDULE  FEE BULLETIN 7-200 Page 4 of 7 City of Chula Vista www.chulavistaca.gov 619.409.5979 ~ Dry erase board $10 flat fee Game room $451 0 $2320 $114 0 Sunset View Parkwimming Pools (Loma Verde/Parkway) Roller hockey facilityShared use $140 $705 0 $3510 0 Exclusive use $150 $75 $38 Swim Lane (per lane) $30 $15 $8 City staff is provided on an hourly basis, as needed. This charge is in addition to the above hourly rental rates. City staff .......................................... Full cost recovery See Master Fee Schedule Fee Bulletins 1-100 and 1- 200 for additional discussion of full cost recovery and current hourly rates. FACILITY FEE SCHEDULE (PER HOUR) FACILITY NR or FP at PT 100% R or NP at PT / NR or FP at NPT 50% R or NP at NPT 25% OUTDOOR COURTS Basketball Court $55 $28 $14 Tennis Court $55 $28 $14 SALT CREEK COMMUNITY PARK Soccer Arena $115 $58 $29 SUNSET VIEW PARK Roller Hockey Facility $115 $58 $29 2017-11-07 Agenda Packet Page 370 July 2011April 2018 MASTER FEE SCHEDULE  FEE BULLETIN 7-200 Page 5 of 7 City of Chula Vista www.chulavistaca.gov 619.409.5979 OTHER FACILITIES – USE PERMIT 1. Fitness Centers (fee for 12 week session) Otay and Salt Creek Centers Resident ................................................................ $20 Non-resident ......................................................... $40 Norman Park Center Resident ................................................................ $28 Non-resident ......................................................... $56 Morning Fitness (Otay) Resident ................................................................ $35 Non-resident ......................................................... $70 2. Swimming Pools, Rentals, per hour Shared use ............................................................ $60 Exclusive use ......................................................... $64 Non-profit, shared or exclusive use ...................... $32 Non-profit, long term shared use ......................... $28 3. Swimming Pools, Other Charges Equipment charges Fee per day, per team ............................................. $3 Maximum monthly fee per team .......................... $25 4. Swimming Pools, Cancellation Fee Recreation office must be notified of cancellation a minimum of 24 hours prior to scheduled time for swimming pool rental. Failure to do so will result in assessment of cancellation fee. Cancellation fee .................................................... $75 USE PERMITS – OTHER CHARGES 1. Cancellation Fee Recreation office must be notified of cancellation a minimum of 48 hours21 days prior to scheduled time for activity. Failure to do so will result in forfeiture of the fee. Applies to General Facilities – Use Permit rentals onlyall facility rentals, except Picnic Shelters (48-hour minimum notice required). 2. Reservation Fee Cleaning/damage depositNonrefundable Reservation Fee ................................................ $2100 Alcoholic beverages (if permitted) Additional deposit ............................................... $100 Non-refundable alcohol use fee ......................... $100 Non-resident surcharge does not apply to deposits. 3. Variations Variations of stated fees must have approval of the Recreation DirectorSee Fee Bulletin 1-100 fee waiver process. 4. Custodial Fees, per rentalNonrefundable custodial staff fees, applicable Friday – Sunday and City holidays Chula Vista Women’s ClubCustodial fee, per facility rental ..................................................................... $60 Norman Park Senior Center .................................. $25 Otay Recreation Center ........................................ $60 AMPHITHEATERS (PER HOUR) Memorial Bowl (2 hour minimum) Nonresident/For-profit ....................................... $150 Resident/Non-profit .............................................. $75 Cleaning/Damage Deposit .................................. $100 Mountain Hawk Park (2 hour minimum) Nonresident/For-profit ....................................... $150 Resident/Non-profit .............................................. $75 Cleaning/Damage Deposit .................................. $100 PICNIC SHELTERS (PER DAY) 1. Small Shelter Maximum group size .............................................. 50 Reservation fee, per dayResident/Non-profit .. $6075 Reservation fee, Nonresident/For-profit ............ $150 Cleaning/Security deposit ..................................... $25 2. Medium Shelter Maximum group size ............................................ 100 Reservation fee, Resident/Non-profit ................ $150 Reservation fee, Nonresident/For-profit ............ $300 Reservation fee, per day ..................................... $155 Cleaning/Security deposit ..................................... $75 3. Large Shelter Maximum group size ............................................ 200 Reservation fee, Resident/Non-profit ................ $300 Reservation fee, Nonresident/For-profit ............ $600 2017-11-07 Agenda Packet Page 371 July 2011April 2018 MASTER FEE SCHEDULE  FEE BULLETIN 7-200 Page 6 of 7 City of Chula Vista www.chulavistaca.gov 619.409.5979 Reservation fee, per day ..................................... $210 Cleaning/Security Damage dDeposit .................. $100 Commercial vendor permit, all shelters ............... $30 Cancellation fee*, all shelter reservations ............ $25 *Cancellation fee, 48-hour minimum notice required for all shelter reservations BALL FIELDS 1. Lighted field, per hour Reservation fee, full field ...................................... $40 Reservation fee, partial field ................................. $20 Youth Sports Council, regular season ................... $15 Adult Sports, City league, regular season ............. $15 2. Unlighted field, per hour Reservation fee, full field ...................................... $25 Reservation fee, partial field ............................ $12.50 Youth Sports Council, regular season .............No charge Adult Sports, City League, regular season .......No charge 3. Additional charges, all ball fields Cancellation fee, all reservations ............................ $5 An additional fee for City staff to turn on lights, field preparation requested, and turn off lights is required. Charge includes travel time to site location. City staff .......................................... Full cost recovery See Master Fee Schedule Fee Bulletins 1-100 and 1- 200 for additional discussion of full cost recovery and current hourly rates. OTHER FIELD USE & PROGRAMS 1. Adult Athletic Leagues Maintenance fee, per team per season Resident leagues ................................................... $56 Non-resident leagues ............................................ $84 2. Youth Sports LeagueCouncil Fee per team, per season ..................................... $11 3. Tournament Field use Fee All fields, except Mt. San Miguel Park Fee per team, per tournament ............................. $22 Mt. San Miguel Park (multiple fields) Unlighted field use, per hour .............................. $100 Lighted field use, per hour .................................. $145 Tournament rental rates include initial ball field preparation, on-site staff and exterior concession privileges. Tournament rental of Mt. San Miguel Park requires a 6 hour per day minimum rental. 4. Special Interest Classes Registration fee, per participant ........................ $6.00 5.4. Special Equipment for Private Parties in City parks Commercial Vendor Permit Fee charged for the use of an air jump, pony ride, llama ride, petting zoo, or similar product. Resident/Non-profit .......................................... $3050 Non-resident/For-profit .................................. $60100 Large Inflatable (15x15 or larger) Permit Resident/Non-profit .............................................. $75 Nonresident/For-profit ....................................... $150 Food/Game Trucks Permit Resident/Non-profit .............................................. $75 Nonresident/For-profit ....................................... $150 5. Active Recreation Areas Active Recreation Areas (Non-Sports Specific) Permit Fee charged per permit, per day and/or per quarter, for recreational-type activities (i.e., Fitness in the Park). Nonresident/For-profit Base rate Quarterly, per 12-week session .......................... $250 Daily ...................................................................... $25 Resident/Non-profit Discount rate Quarterly, per 12-week session .......................... $200 Daily ...................................................................... $20 For Profit Business Offering Fee charged per permit, per day, for businesses offering recreational-type activities for profit. 2017-11-07 Agenda Packet Page 372 July 2011April 2018 MASTER FEE SCHEDULE  FEE BULLETIN 7-200 Page 7 of 7 City of Chula Vista www.chulavistaca.gov 619.409.5979 Resident ................................................................ $50 Non-resident ....................................................... $100 FEE ADJUSTMENTS All fees in Master Fee Schedule Fee Bulletins 7-100 and 7-200 shall be adjusted annually by the Consumer Price Index (CPI, San Diego All Urban Consumers, in June of each year, rounded to the nearest dollar, and effective for the start of the summer fall class season on October 1st. 1 Includes use of 1 kitchen and exterior patio. Non- exclusive use included with any room rental when center is open; exclusive use included with any room rental when center is closed. 2 Non-exclusive use of patio included with any room rental when center is open; exclusive use included with any room rental when center is closed. Patio fee will be applied to rental of just the patio. 3 Non-exclusive use of courtyard included with any room rental when center is open; Exclusive use included with any room rental when center is closed. Courtyard Fee will be applied to rental of just the courtyard and only when the center is closed. 4 Available only during exclusive Interior Courtyard use. 5 Non-exclusive use included with rental of multipurpose room; exclusive use available at prevailing staff cost. 6 Exclusive use included with any room rental when center is closed. 2017-11-07 Agenda Packet Page 373 MASTER FEE SCHEDULE FEE BULLETIN Chapter 7 – Recreation Fees 7-100 General & Program Fees City of Chula Vista Recreation Department 276 Fourth Avenue, Chula Vista, CA 91910 April 2018 City of Chula Vista www.chulavistaca.gov 619.409.5979 FEE TIERS & DEFINITIONS The City of Chula Vista (“City”) employs a differential pricing system to Recreation Fees, based upon program offering, timing, customer residency, and for-profit status. For each fee item, a base fee is adopted, with subsequent discounts applied based upon these factors. The following tiered pricing strategy, including definitions, applies to Master Fee Schedule Bulletins 7-100 and 7-200, and may be incorporated into additional Fee Bulletins by reference. Definitions 1. Prime Time Monday – Friday ……………………………….5 p.m. to close Saturday………………………………………………………..All day 2. Non-Prime Time Monday – Friday.……………………………..Open to 5 p.m. Sunday…………………………………………………………..All day 3. Resident A. A resident shall be considered any person residing within the City limits or any person owning property in the City (“Resident”). In order to qualify for Resident pricing, the Resident must supply proof of residency or property ownership, by one of the following methods: Valid California Driver’s License, or official identification (“I.D.”) card issued by the Department of Motor Vehicles for non-drivers, displaying a City address on the license or I.D.. B. Current year utility bill, in the Resident’s name, for an address within the City. C. Current year property tax statement, in the Resident’s name, for an address within the City. 4. Non-profit Non-profit generally means an organization organized or incorporated for educational, civic, charitable, religious, or cultural purposes, having a bona fide membership, where proceeds, if any, arising from its activities are used for the purpose of such organization and may not be used for the individual benefit of the membership of such organization. In order to qualify for Non-profit pricing, proof of non-profit status must be provided in the form of a current State of California Non-profit Tax ID number. 5. For-profit For-profit means any organization that fails to qualify as non-profit per the above definition, or any individual, operating a commercial enterprise for purpose of monetary gain and utilizing City facilities for that purpose, regardless of residency status. PROGRAM FEES The Base Fees for Recreation Department activities and classes shall be set in consideration of the City’s full cost including overhead, adjusted to reflect cost recovery targets by program area. Full cost shall be calculated by program as follows: A. Estimated personnel costs (direct cost) B. Estimated contracted service costs (direct cost) C. Estimated supplies and services costs (direct cost) D. Allocated park maintenance costs (overhead costs) E. Allocated facility maintenance costs (overhead costs) F. Allocated citywide support cost (overhead costs) Cost recovery target categories include: 1. Core Programs (0% - 30% cost recovery) 2. Important Programs (31% - 70% cost recovery) 3. Value-Added Programs (71% - 100% cost recovery) See City Council Policy 159-03 for current cost recovery targets by service area/program. Program-level fee schedules are adopted administratively in accordance with the above provisions. Please contact the Recreation Department for current program fees. 2017-11-07 Agenda Packet Page 374 MASTER FEE SCHEDULE FEE BULLETIN Chapter 7 – Recreation Fees 7-200 Facility Use Fees City of Chula Vista Recreation Department 276 Fourth Avenue, Chula Vista, CA 91910 April 2018 City of Chula Vista www.chulavistaca.gov 619.409.5979 Recreation facilities are available to groups only when City programs are not scheduled. An employee or City-appointed representative must be present during use of listed facilities. GENERAL FACILITIES – USE PERMIT Prime Time (PT) Non-Prime Time (NPT) Resident (R) or Non-profit (NP) 50% of Base Rate 25% of Base Rate Non-Resident (NR) or For-profit (FP) 100% of Base Rate 50% of Base Rate FACILITY FEE SCHEDULE (PER HOUR) FACILITY NR or FP at PT 100% R or NP at PT / NR or FP at NPT 50% R or NP at NPT 25% Parkway Community Center Gymnasium – Large $150 $75 $38 Gymnasium – Large Half $95 $48 $24 Gym – Small (MH) $130 $65 $33 Kitchen facilities w/MH $25 $13 $6 Classroom $75 $38 $19 Dance room $75 $38 $19 Game room $45 $23 $11 Heritage Community Center Main Hall (MH) $130 $65 $33 Kitchen facilities w/MH $25 $13 $6 Outdoor Stage $130 $65 $33 Craft Room $75 $38 $19 Norman Park Senior Center Cornell Hall Full $130 $65 $33 Cornell Hall Half $75 $38 $19 Conference Room $25 $13 $6 Kitchen facilities $25 $13 $6 Game room $25 $13 $6 Loma Verde Recreation Center Main Hall (MH) $130 $65 $33 Classroom $65 $33 $16 Dance room $75 $38 $19 Kitchen facilities w/MH $25 $13 $6 Game room $25 $13 $6 Chula Vista Woman’s Club Main Hall (MH) $130 $65 $33 Otay Recreation Center Gymnasium – Full $130 $65 $33 Gymnasium – Half $75 $38 $19 Classroom $60 $30 $15 Game room $25 $13 $6 Patio $55 $28 $14 Salt Creek Center Gymnasium – Full $150 $75 $38 Gymnasium – Half $95 $48 $24 Multipurpose rooms -Full (includes kitchen & patio) $175 $88 $44 -Half with kitchen $80 $40 $20 Game room $45 $23 $11 Montevalle Center Gymnasium – Full $150 $ 75 $38 Gymnasium – Half $95 $48 $24 Multipurpose rooms -North $140 $70 $35 -South $140 $70 $35 -Middle $95 $48 $24 -2 room combo $175 $88 $44 -3 room combo $230 $115 $58 Craft room $95 $48 $24 Dance room $95 $48 $24 Game room $45 $23 $11 Veterans Center Gymnasium – Full $150 $ 75 $38 Gymnasium – Half $95 $48 $24 Main Hall (MH) $175 $88 $44 Multipurpose rooms -Full w/kitchen $175 $88 $44 -Half $80 $40 $20 -Half w/kitchen $105 $53 $26 Dance room $95 $48 $24 Game room $45 $23 $11 Swimming Pools (Loma Verde/Parkway) Shared use $140 $70 $35 Exclusive use $150 $75 $38 Swim Lane (per lane) $30 $15 $8 2017-11-07 Agenda Packet Page 375 April 2018 MASTER FEE SCHEDULE  FEE BULLETIN 7-200 Page 2 of 3 City of Chula Vista www.chulavistaca.gov 619.409.5979 City staff is provided on an hourly basis, as needed. This charge is in addition to the above hourly rental rates. City staff .......................................... Full cost recovery See Master Fee Schedule Fee Bulletins 1-100 and 1- 200 for additional discussion of full cost recovery and current hourly rates. FACILITY FEE SCHEDULE (PER HOUR) FACILITY NR or FP at PT 100% R or NP at PT / NR or FP at NPT 50% R or NP at NPT 25% OUTDOOR COURTS Basketball Court $55 $28 $14 Tennis Court $55 $28 $14 SALT CREEK COMMUNITY PARK Soccer Arena $115 $58 $29 SUNSET VIEW PARK Roller Hockey Facility $115 $58 $29 USE PERMITS – OTHER CHARGES 1. Cancellation Fee Recreation office must be notified of cancellation a minimum of 21 days prior to scheduled time for activity. Failure to do so will result in forfeiture of the fee. Applies to all facility rentals, except Picnic Shelters (48-hour minimum notice required). 2. Reservation Fee Nonrefundable Reservation Fee ......................... $100 3. Variations See Fee Bulletin 1-100 fee waiver process. 4. Nonrefundable custodial staff fees, applicable Friday – Sunday and City holidays Custodial fee, per facility rental ............................ $60 AMPHITHEATERS (PER HOUR) Memorial Bowl (2 hour minimum) Nonresident/For-profit ....................................... $150 Resident/Non-profit .............................................. $75 Cleaning/Damage Deposit .................................. $100 Mountain Hawk Park (2 hour minimum) Nonresident/For-profit ....................................... $150 Resident/Non-profit .............................................. $75 Cleaning/Damage Deposit .................................. $100 PICNIC SHELTERS (PER DAY) 1. Small Shelter Maximum group size .............................................. 50 Reservation fee, Resident/Non-profit .................. $75 Reservation fee, Nonresident/For-profit ............ $150 2. Medium Shelter Maximum group size ............................................ 100 Reservation fee, Resident/Non-profit ................ $150 Reservation fee, Nonresident/For-profit ............ $300 3. Large Shelter Maximum group size ............................................ 200 Reservation fee, Resident/Non-profit ................ $300 Reservation fee, Nonresident/For-profit ............ $600 Cleaning/Damage Deposit .................................. $100 Cancellation fee*, all shelter reservations ............ $25 *Cancellation fee, 48-hour minimum notice required for all shelter reservations BALL FIELDS 1. Lighted field, per hour Reservation fee, full field ...................................... $40 Reservation fee, partial field ................................. $20 Youth Sports Council, regular season ................... $15 Adult Sports, City league, regular season ............. $15 2. Unlighted field, per hour Reservation fee, full field ...................................... $25 Reservation fee, partial field ............................ $12.50 Youth Sports Council, regular season ............. No charge Adult Sports, City League, regular season ....... No charge 3. Additional charges, all ball fields Cancellation fee, all reservations ............................ $5 2017-11-07 Agenda Packet Page 376 April 2018 MASTER FEE SCHEDULE  FEE BULLETIN 7-200 Page 3 of 3 City of Chula Vista www.chulavistaca.gov 619.409.5979 An additional fee for City staff to turn on lights, field preparation requested, and turn off lights is required. Charge includes travel time to site location. City staff .......................................... Full cost recovery See Master Fee Schedule Fee Bulletins 1-100 and 1- 200 for additional discussion of full cost recovery and current hourly rates. OTHER FIELD USE & PROGRAMS 1. Adult Athletic Leagues Maintenance fee, per team per season Resident leagues ................................................... $56 Non-resident leagues ............................................ $84 2. Youth Sports Council Fee per team, per season ..................................... $11 3. Tournament Field use Fee All fields, except Mt. San Miguel Park Fee per team, per tournament ............................. $22 Mt. San Miguel Park (multiple fields) Unlighted field use, per hour .............................. $100 Lighted field use, per hour .................................. $145 Tournament rental rates include initial ball field preparation, on-site staff and exterior concession privileges. Tournament rental of Mt. San Miguel Park requires a 6 hour per day minimum rental. 4. Special Equipment for Private Parties in City parks Commercial Vendor Permit Fee charged for the use of an air jump, pony ride, petting zoo, or similar product. Resident/Non-profit .............................................. $50 Nonresident/For-profit ....................................... $100 Large Inflatable (15x15 or larger) Permit Resident/Non-profit .............................................. $75 Nonresident/For-profit ....................................... $150 Food/Game Trucks Permit Resident/Non-profit .............................................. $75 Nonresident/For-profit ....................................... $150 5. Active Recreation Areas Active Recreation Areas (Non-Sports Specific) Permit Fee charged per permit, per day and/or per quarter, for recreational-type activities (i.e., Fitness in the Park). Nonresident/For-profit Base rate Quarterly, per 12-week session .......................... $250 Daily ...................................................................... $25 Resident/Non-profit Discount rate Quarterly, per 12-week session .......................... $200 Daily ...................................................................... $20 FEE ADJUSTMENTS All fees in Master Fee Schedule Fee Bulletins 7-100 and 7-200 shall be adjusted annually by the Consumer Price Index (CPI, San Diego All Urban Consumers, in June of each year, rounded to the nearest dollar, and effective for the start of the fall class season on October 1st. 2017-11-07 Agenda Packet Page 377 City of Chula Vista Staff Report File#:17-0477, Item#: 14. A. QUARTERLY FINANCIAL REPORT FOR THE QUARTER ENDING SEPTEMBER 30, 2017 B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2017/18 BUDGET TO ADJUST FOR VARIANCES AND APPROPRIATING FUNDS THEREFOR (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council accept the report and adopt the resolution. SUMMARY The Finance Department prepares quarterly financial reports for the General Fund that reflect budget to actual comparisons, projected revenues and expenditures, and highlight major variances that may require additional action or changes. The quarterly financial reports are in compliance with Section 504 (f) of the City Charter, which requires that quarterly financial reports be filed by the Director of Finance through the City Manager. It also provides the opportunity to review and update Measure P funding status and the long-term financial plan. In preparing the quarterly financial projections, staff has identified various budget changes that are needed to reflect actual revenues and expenditures or address changes in budgetary needs. For government entities, a budget creates a legal framework for spending during the fiscal year. After the budget is approved there are circumstances, which arise that could require adjustments to the approved budget. Council Policy 220-02 “Financial Reporting and Transfer Authority” was established in January of 1996 and allows for budget transfers to be completed. This report discusses budget adjustments that staff recommends in the General Fund as well as various other funds. Two new sections have been added to the attached Quarterly Financial Report. The report now includes an update on Measure P actual revenues and expenditure to date and an updated Long Term Financial Plan, reflecting all Council approved items since the adoption of the Fiscal Year 2017/18 budget in June. ENVIRONMENTAL REVIEW Environmental Notice The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that filing of the quarterly financial status report 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. City of Chula Vista Printed on 11/3/2017Page 1 of 8 powered by Legistar™2017-11-07 Agenda Packet Page 378 File#:17-0477, Item#: 14. Environmental Determination 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. BOARD/COMMISSION RECOMMENDATION Not applicable. DISCUSSION The Finance Department prepares quarterly financial reports for the General Fund that reflect budget to actual comparisons, projected revenues and expenditures, and highlight major variances that may require additional action or changes. The quarterly financial reports are in compliance with Section 504 (f) of the City Charter, which requires that quarterly financial reports be filed by the Director of Finance through the City Manager. General Fund Overview Attachment A - Quarterly Financial Report provides the financial outlook for the General Fund for the current fiscal year and includes summary information for revenues and expenditures. There is also a brief discussion of Measure P and the long-term financial plan. The following chart summarizes the projections for the first quarter of fiscal year 2017/18 for the City’s General Fund. The amended budget column includes all Council approved changes to the fiscal year 2017/18 adopted budget that have taken place through the end of the first quarter ending September 30, 2017. The proposed column lists the amended budget along with proposed adjustments for revenues and expenditures as of June 30, 2018. The third column includes projected revenues which are being watched for possible adjustment at a later date. The following table reflects the unaudited General Fund reserves as of July 1, 2017 (beginning fund balance) as well as the projected General Fund reserves for June 30, 2018 (projected ending fund balance). Note 1 -The Original Budget and projections reflected in this table do not include prior year appropriations for capital improvement projects and other encumbrances totaling $5.7 million that were carried forward into the fiscal year 2017/18 budget. These expenditure impacts are already reflected in the estimated fund balance as of July 1, 2017 and are therefore not included in the above table. Measure P Fund Overview The voter approved, temporary ½ cent sales tax measure is allowing the City to make progress toward replacing and repairing failing City assets. Out of the $169,588,935 proposed allocations, the City of Chula Vista Printed on 11/3/2017Page 2 of 8 powered by Legistar™2017-11-07 Agenda Packet Page 379 File#:17-0477, Item#: 14. toward replacing and repairing failing City assets. Out of the $169,588,935 proposed allocations, the City has expended approximately $3,584,790 through September 30, 2017. Expenditures include bond sale costs of $46,843, Fire Services expenses of $642,269, Police Services expenditures of $2,345,622 and Infrastructure improvements of $550,055. Several projects are in the procurement/bidding process and will be moving forward in the next quarter. Staff is recommending budget adjustments as summarized in the following tables. General Fund Adjustments City of Chula Vista Printed on 11/3/2017Page 3 of 8 powered by Legistar™2017-11-07 Agenda Packet Page 380 File#:17-0477, Item#: 14. At the conclusion of the first quarter of the 2018 fiscal year, most of the proposed adjustments are minor inter- and intra-Department transfers or are appropriations associated with offsetting revenue. The most noteworthy adjustment to the General Fund budget is the shift of the $200,000 Small Business Loan Program, which is currently budgeted in the Economic Development Department. This program will now be shown in a separate and new Enterprise Fund. The current year funding for the program will be transferred out of the Non-Departmental Division to the new fund and the Economic Development budget will be reduced by the same amount. The new fund is displayed below among the list of funds in the Other Funds chart. There is no net cost associated with the proposed first quarter adjustments because all of the proposed expenditure appropriations are offset with budgetary savings elsewhere within the General Fund or by specific offsetting revenues. At this stage of the year, the Departments are on track with their personnel budgets. The Police and Fire Departments, where overtime costs can easily result in unplanned budget overages, are on target. Given the ongoing fires in the State, it is anticipated that the second quarter will see significant costs associated with providing mutual aid support. Because of the Governor’s declared State of Emergency the costs associated with the mutual aid response will largely be covered by State Office of Emergency Services reimbursement. Other Funds Adjustments City of Chula Vista Printed on 11/3/2017Page 4 of 8 powered by Legistar™2017-11-07 Agenda Packet Page 381 File#:17-0477, Item#: 14. Outside of the General Fund, there are changes in sixteen cost centers within fourteen different funds. The proposed adjustments, displayed in the chart above, have a net cost of $2,719,895, which are entirely funded with fund balances or current year available revenue. A brief discussion follows on the major adjustments are below. An appropriation of $217,992 from from the Fire Equipment Lease Fund balance will allow the Fire Department to purchase three auto pulses, monitors and batteries. The revenue supporting this appropriation was received in Fiscal Year 2016-17. The Supplemental Local Law Enforcement Fund appropriation in the amount of $200,000 will provide funding for the Taser International body-worn cameras and other maintenance/software contracts. A reduction in revenue of $624,632 for CFD 18M VIL3OR is a correction to the district assessments amount anticipated for the current fiscal year. As previously discussed in the General Fund section above, the budget for the Small Business Loan Program, previously included in the Economic Development Department, is being moved from the General Fund to a new enterprise fund to be called the Small Business Loan Program Fund (404). The new fund’s budget includes a Transfer In from the General Fund and a corresponding City of Chula Vista Printed on 11/3/2017Page 5 of 8 powered by Legistar™2017-11-07 Agenda Packet Page 382 File#:17-0477, Item#: 14. expenditure budget of $200,000. There are increases to the Development Services Fund of $250,000 in the Supplies & Services category for outside consultant support to help address current volumes and improve turnaround times for priority projects. The additional amount of $79,957 in the Personnel Services category is for the transfer of a Senior Landscape Inspector from the Public Works Department. The expenditures are expected to have revenue offsets resulting in a no net impact to the fund. The reduction in the Fire Apparatus Lease Fund is due to the three Fire Engine leases that will be paid directly out of the Measure P Fund (see discussion in next section). The appropriation of $351,600 to the Public Facilities DI Fund is for the purchase of five Police vehicles for the five new Peace Officer positions approved by Council. In September 2017, the City called bonds for the Eastlake Greens II AD-94-1 Improvement Fund because of the availability of surplus funds. The appropriation from fund balance to the Other Expenses category will allow the payoff of the remaining principal balance in AD 94-1. Measure P Fund Adjustments Adjustments to the Measure P fund include adding the $27,124,008 net proceeds from the 2017 lease-revenue bonds as revenue and appropriating $8,445,000 to Supplies & Services and Other Expenses categories for miscellaneous bond related expenses and for the principal and interest payments. The other adjustments to the fund reflect the revision of paying for the approved new Fire apparatus directly from the Measure P fund, eliminating the $244,000 Transfer Out to the Fire Apparatus Fund. Category transfers to the Other Expenses category from the Capital and Supplies & Services categories are intended to record the vehicle and equipment acquisition as principal and interest payments ($137,949 from the Capital category for the new Tiller and $170,238 from the Supplies & Services category for the Computer Aided Dispatch (CAD) equipment). Technical Corrections City of Chula Vista Printed on 11/3/2017Page 6 of 8 powered by Legistar™2017-11-07 Agenda Packet Page 383 File#:17-0477, Item#: 14. The above items are proposed technical corrections to reverse a prior action on July 11, 2017, Resolution 2017-126. The above funds are debt service funds, where the accounting is different than an expenditure budget. In order for the authorizing documentation to be correct, the original requested budget adjustments will be reversed. This action does not change the authorized use of the funds, so there is no net fiscal impact to report. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council of the City of Chula Vista 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 of Chula Vista 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. This action supports the Operational Excellence goal by communicating the City’s projected financial position for the current fiscal year in an open and transparent manner. This transparency supports City Initiative 1.3.1. - “Foster public trust through an open and ethical government.” CURRENT YEAR FISCAL IMPACT There is no fiscal impact to the General Fund associated with this action. Across the other funds, there is a net positive impact of $18.7 million, driven primarily by the addition of the Measure P bond proceeds and the new debt service associated with the bonds. Funds for which there are new appropriations being sought have either offsetting revenue or available and assigned fund balance. It is currently projected that fiscal year 2017/18 will remain balanced. City of Chula Vista Printed on 11/3/2017Page 7 of 8 powered by Legistar™2017-11-07 Agenda Packet Page 384 File#:17-0477, Item#: 14. ONGOING FISCAL IMPACT There is no ongoing fiscal impact related to this action for the General Fund. The 2017 Measure P Revenue Bonds will have ongoing debt service costs of $8.4 million per year, which is approximately half of the annual projected revenue. This cost impact was known at the time the bonds were sold, but because the issuance occurred after the Fiscal Year 2017-18 budget was finalized, its proceeds and debt service amounts were not included. The impacts related to actions approved by Council since the adoption of the budget in June 2017 are reflected in the Long Term Financial Plan section of the attached quarterly report. Note: Includes funding for five new police officer positions and twelve new firefighter positions which are partially offset by SAFER grant funds. ATTACHMENTS 1. FY2018 First Quarter Financial Report Staff Contact: David Bilby, Finance Department City of Chula Vista Printed on 11/3/2017Page 8 of 8 powered by Legistar™2017-11-07 Agenda Packet Page 385 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE FISCAL YEAR 2017/18 BUDGET TO ADJUST FOR VARIANCES AND APPROPRIATING FUNDS THEREFOR WHEREAS,the City Charter states that at any meeting after the adoption of the budget, the City Council may amend or supplement the budget by a motion adopted by the affirmative votes of at least four members; and WHEREAS, staff has completed the budget review for the quarter ending September 30, 2017 and is recommending a number of budget amendments; and WHEREAS, staff is recommending approximately ($32,849) in appropriations to various departments in the General Fund that will be offset by ($32,849) in revenues resulting in a no net impact; and WHEREAS, the Traffic Safety Fund, Fire Equipment Lease Fund, Supplemental Law Enforcement Service Grant, the State Parkway Grant, the Community Facilities District 18M Village 3 Otay Ranch Fund, the Public Facilities Development Impact Fee Fund, and the Highway Safety Improvement Program Fund will be negatively impacted due to adjustments that will add appropriations that will be made from the available balances of these funds; and WHEREAS, the Justice Assistance Grant (JAG), the Transportation Sales Tax (TransNet) Fund, and the Measure P Sales Tax Fund will be positively impacted as a result of increased revenues resulting from the recommended changes; and WHEREAS, the appropriation of surplus available funds in the Eastlake Greens II AD94- 1 Improvement Fund will retire the remaining principal balance of outstanding bonds; and WHEREAS,the recommended adjustments to the TUT Common Fund, McCandliss Memorial Cultural Airs Fund, Office of Thrift Supervision Step Program Grant , Small Business Loan Program, Development Services Fund, and the Fire Apparatus Lease Fund consist of offsetting transfers between expenditure categories and are neutral resulting in no net impact to these funds; and WHEREAS, budget adjustments previously authorized by Resolution 2017-126 need to be reversed due to different accounting treatment. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby amend the fiscal year 2017/18 budget and approves the following appropriations: 2017-11-07 Agenda Packet Page 386 Summary of General Fund Appropriations and/or Transfers Summary of Appropriations and/or Transfers for Other Funds GENERAL FUND Boards & Commissions 3,400 - - - - - 3,400$ -$ 3,400$ Non- Departmental - 5,649 - - - 200,000 205,649$ 9,049$ 196,600$ Economic Development - - (200,000) - - - (200,000)$-$ (200,000)$ Police 1,925 6,575 - 15,300 - - 23,800$ 23,800$ -$ Recreation (58,100) - - 58,100 - -$ -$ -$ TOTAL GENERAL FUND (52,775)$ 12,224$ (200,000)$15,300$ 58,100$ 200,000$32,849$ 32,849$ -$ DEPART-MENTTRANSFERSOUTTOTALEXPENSETOTALREVENUENET COSTPERSONNEL SERVICESSUPPLIES &SERVICESOTHEREXPENSESUTILITIESOTHERCAPITALOTHER FUNDS TUT Common Fund (223352)- (9,049) - - 9,049 -$ -$ -$ Transp Sales Tax Fund (227355)- - - - - -$ 1,392$ (1,392)$ Fire Equip Lease Fund (234359)- - - 217,992 - 217,992$ -$ 217,992$ Traffic Safety (245405)- 150,000 - - - 150,000$ -$ 150,000$ McCandliss Mem Cult Arts (267397)- - 1,000 - - 1,000$ 1,000$ -$ Suppl Law Enforce Service (272407)- 200,000 - - - 200,000$ -$ 200,000$ Off of Thrift Superv. Step Program (272416)25,747 - - - - 25,747$ 25,747$ -$ Justice Assistance Grant (272427) - - - - - -$ 3,432$ (3,432)$ State Pkwy Grant Fund (273500)- - 519 - - 519$ -$ 519$ Commun Fac Distr. 18M Village 3 Otay Ranch (348669)- - 800 - - 800$ (624,632)$ 625,432$ Small Bus Loan Prg (404725)- - 200,000 - - 200,000$ 200,000$ -$ Development Services (408737/408741)250,000 - - - 250,000$ 250,000$ -$ Fire Apparatus Lease (452798)- - (244,400) - - (244,400)$ (244,400)$ -$ Public Facilities Dev Impact Fees (560896)- - - 351,600 - 351,600$ -$ 351,600$ Eastlake Greens II AD 94-1 Imp (512868)- - 1,175,000 - - 1,175,000$ -$ 1,175,000$ Highway Safety Imp Prog (736952)- - - - 1,392 1,392$ -$ 1,392$ TOTAL OTHER FUNDS 25,747$ 590,951$ 1,132,919$ 569,592$ 10,441$ 2,329,650$ (387,461)$ 2,717,111$ TRANSFERSOUTTOTALEXPENSETOTALREVENUENET COSTFUND/(ORGKEY)PERSONNEL SERVICESSUPPLIES &SERVICESOTHEREXPENSESOTHERCAPITAL2017-11-07 Agenda Packet Page 387 Resolution No. Page 3 Summary of Measure P Fund Appropriations and/or Transfers Summary of Technical Corrections on Prior Action Presented by Approved as to form by David Bilby Glen R. Googins Director of Finance/Treasurer City Attorney MEASURE P SALES TAX FUND Measure P Sales Tax (220350) (170,238) 552,587 (137,949) (244,400) -$ -$ -$ Measure P 2017 Lease Revenue Bonds (220368)5,000 8,440,000 - - 8,445,000$ 27,124,008$ (18,679,008)$ TOTAL MEASURE P SALES TAX FUND (165,238)$8,992,587$ (137,949)$ (244,400)$8,445,000$ 27,124,008$ (18,679,008)$ TRANSFERSOUTTOTALEXPENSETOTALREVENUENET COSTFUND/ORGKEYSUPPLIES &SERVICESOTHEREXPENSESOTHERCAPITALPERSONNEL SUPPLIES & TRANSFERS TOTAL TOTAL FUND/(ORGKEY)SERVICES SERVICES OUT EXPENSE REVENUE Otay Lakes Rd AD 88-2 Improvement (501x)- - - -$ (48,005)$ East H St. AD 87-1 Improvement (503x)- - - -$ (36,183)$ 95 Assess Bond Refi Redemption (816x)(16,500) (533,079) (99,652) (649,231)$ -$ AD88-2 051 (849x)- - - -$ (15,464)$ TOTAL OTHER FUNDS (16,500)$ (533,079)$(99,652)$ (649,231)$ (99,652)$ 2017-11-07 Agenda Packet Page 388 Quarterly Financial Report First Quarter FY 2018 Ending September 30, 2017 Prepared – October 2017 OVERVIEW This financial report summarizes the City’s General Fund financial position for fiscal year 2018 through September 30, 2017 and projecting out to June 30, 2018. The purpose of this report is to provide the City Council, Management and the citizens of Chula Vista an update on the City’s fiscal status based on the most recent financial information. This report also includes a brief status update of the Measure P revenue as well as an update on the City’s multi-year or long-term financial plan (LTFP). The LTFP is a forecast of ten future years based upon information available at the time and is updated annually to reflect the most current information available. This quarterly financial report contains an update of the years up until 2027 (attached) and a discussion about the next five years. The most recent LTFP was first presented with the City’s Fiscal Year 2017-18 budget. NATIONAL, STATE, AND REGION ECONOMIC UPDATE The National Forecast1 - In the September 20 17 UCLA Anderson Forecast, Senior Economist David Shulman notes that the national economy continues to maintain its steady growth rate of 2.5% - 3%. Shulman expects this rate of growth to continue with real GDP increasing by a projected 2.1%, 2.8% and 2.1% in 2017, 2018, and 2019 respectively. This positive trend will be driven, in part, by the rebuilding in areas impacted by hurricanes Harvey, Irma and Maria. The rebuilding in Florida and Texas is projected to reach $200 billion. However, Shulman also notes that this growth in GDP will not replace the vast amounts of wealth that were destroyed by the hurricanes. Increases in infrastructure spending and defense spending together with a projected a $1.8 trillion tax cut is expected to fuel growth over the coming few years. Unemployment is expected to remain at or below the current 4.4% level with a possible uptick at the end of 2019 when the economy is expected to slow somewhat. Contrary to typical economic theory, the low unemployment has not resulted in high inflation, and this market behavior change continues to confound economists. The current inflation rate of 2+% will keep the Federal Reserve on track with its gradual increases to long-term interest rates. 1 Source: UCLA Anderson Forecast, September 2017 The California Forecast2 - UCLA Anderson Senior Economist Jerry Nickelsburg focused his September analysis on the relationship between labor and housing in California. With the State at near full employment, future job growth, and therefore GDP growth, will be tied to immigration and domestic migration. With the current national policies decidedly reducing immigration, California will need more net domestic migration to spur growth. The high cost of housing, however, is a deterrent for in-migration to California. Mr. Nickelsburg outlines the many reasons why making housing affordable in California is difficult. Highlighting a recent study by the California LAO on housing demand, he suggests that in order to obtain a modest 10% decrease in housing prices, there needs to be 20% more inventory. “The current legislative initiatives will moderate the increase in the price of housing, but will not do much to alleviate the high cost of living in California in the near term.” he says. His overall forecast for the State’s growth is muted, with employment growth at a modest 1.1%, 0.9% and 0.9% over the next three years and growth in real personal income growing at 2.0%, 3.1%, and 3.1% for the same period. The San Diego Forecast3 - The USD Burnham-Moores Center for Real Estate’s (BMC) Index of Leading Economic Indicators for San Diego County, shown on the next page, rose 0.1% in August 2017 to 145.2. Increases in the index’ indicators were led by the national economic outlook, an increase of 0.78%. There were small gains in authorized building permits (0.51%) and consumer confidence (0.16%). For the third month in a row, both labor indicators, initial claims for unemployment insurance and help-wanted advertising saw declines, netting to a slight increase in the seasonally adjusted unemployment rate of 4.5%. The small increases in August’s economic indicators have kept BMC’s outlook positive but with slower growth expected for the rest of the year and through the first half of 2018. 2 Source: UCLA Anderson Forecast, September 2017 3 Source: University of San Diego School of Business Administration, USD Index of Leading Economic Indicators, August 2017; retrieved from URL: http://home.sandiego.edu/~agin/usdlei/index.html 2017-11-07 Agenda Packet Page 389 Quarterly Financial Report First Quarter FY 2018 Ending September 30, 2017 Prepared – October 2017 San Diego Index of Leading Economic Indicators San Diego County, 2012 – 2017 GENERAL FUND PROJECTIONS FOR FISCAL YEAR 2017-18 AFTER FIRST QUARTER General Fund Reserves – Chula Vista’s General Fund Reserve policy was established to ensure that the City’s finances are managed in a manner which will: 1. Continue to provide for the delivery of quality services; 2. Maintain and enhance service delivery as the community grows in accordance with the General Plan 3. Minimize or eliminate the need to raise taxes and fees because of temporary revenue shortfalls; and 4. Establish the reserves necessary to meet known and unknown future obligations and ability to respond to unexpected opportunities. The following table displays the unaudited General Fund reserves as of June 30, 2017 as well as the projected General Fund reserves for June 30, 2018. The table compares the proposed amended budget, with the projected actual. The projected actual assumes slightly lower revenues than the budget, and discussed below. Note: 1) The Original Budget and projections reflected in this table do not include prior year appropriations for capital improvement projects and other encumbrances totaling $5.7 million that were carried forward into the fiscal year 2017/18 budget. These expenditure impacts are already reflected in the estimated fund balance as of July 1, 2017 and are therefore not included in the above table. The City’s financial outlook is primarily unchanged after the first quarter. Expenditures are projected to be within the amended budget level while revenues are expected to be slightly lower than the amended budget. The City’s sales tax projections are trending lower than the budget but the decline for this year will likely be offset by the in- lieu motor vehicle fee revenue, which was budgeted low. Revenue from these two sources is projected to net $6,100 lower than the proposed amended budget. This small decline will be monitored carefully, but is expected to be absorbed elsewhere within the budget before the year is over. The following table shows the budget and projected revenues. The budgeted amount includes all previously approved budget amendments as well as those with proposed changes included with this report. NOTE: 1) Property Tax in Lieu of Vehicle License Fees was previously accounted for as Motor Vehicle License fees (VLF) in the State Revenue category. VLF was replaced by a backfill from property taxes following the permanent reduction of the VLF rate from 2% to 0.65% in 2004. The in lieu amount is adjusted annually the growth in the City’s growth in assessed valuation and will be shown under the Property Tax category in the future. Reserves - July 1, 2017 (unaudited)19.31$ 19.31$ Revenues & Transfers In 185.31$ 185.30$ Expenditures & Transfers Out1 (185.31)$ (185.31)$ Projected Surplus/(Deficit) (0.006)$ Projected Fund Balance for June 30, 2018 19.31$ 19.31$ As a Percentage of Operating Budget 10.4% 10.4% General Fund Reserve First Quarter Projected First Quarter Amended (Millions) Revenue Category Amended FY18 1ST QTR Budget Projected Actual at First Quarter Var- iance Property Taxes 33,620,932$ 33,620,932$ - Sales Tax 32,935,356$ 32,734,010$ (201,346) Measure P Sales Tax 16,320,000$ 16,320,000$ - PT in lieu of VLF1 20,844,039$ 21,039,276$ 195,237 Other Revenue 29,543,253$ 29,543,253$ - Transfers In 11,215,552$ 11,215,552$ - Franchise Fees 11,968,646$ 11,968,646$ - Charges for Services 8,255,255$ 8,255,255$ - Revenue from Other Agencies 2,807,090$ 2,807,090$ - Utility Users Tax 5,860,328$ 5,860,328$ - Transient Occupancy Taxes 4,316,267$ 4,316,267$ - Use of Money & Property 2,421,115$ 2,421,115$ - Other Local Taxes 1,424,643$ 1,424,643$ - License and Permits 1,524,632$ 1,524,632$ - Fines, Forfeitures, Penalties 1,075,423$ 1,075,423$ - Real Property Transfer Tax 1,173,550$ 1,173,550$ - TOTAL REVENUES 185,306,081$185,299,972$(6,109) 2017-11-07 Agenda Packet Page 390 Quarterly Financial Report First Quarter FY 2018 Ending September 30, 2017 Prepared – October 2017 Departmental expenditures are tracking within budgeted levels overall. The General Fund’s amended budget includes (1) the original budgeted expenditures of $166,587,259, (2) the $18,685,973 off-cycle appropriation of the Measure P bond proceeds, (3) prior year carry over encumbrances of $5,751,121, and (4) the proposed $32,849 of expenditures submitted with this report, for a total amended budget of $191.1 million. The following table shows that expenditures as of 9/30/2017 are 21% of the overall budget, but with variances across all the departments. Several departments have expenditures greater than 25% of their budget after the first quarter. Again this year, the City decided to incur the full annual cost of CalPERS unfunded liability contribution in the first quarter in order to achieve a lower annual cost. By paying up front, the City’s yearly contribution was reduced by $559,860, but the entire expenditure of $15.2 million was posted at the beginning of the year rather than distributed monthly. NOTE: 1) Prior year appropriations for capital projects and other encumbrances totaling $5.7 were carried forward into fiscal year 2017-18. The total amount is listed at the bottom of the expenditure table while the expenditures against these encumbrances are contained within the expended column in the respective departments. As in the prior year, the City is currently participating in State and Federal emergency response efforts, fighting wild fires and helping relief efforts in Northern California, Texas and Florida. The financial impacts of these efforts are expected to be offset by reimbursement revenue that will be reflected in a future quarterly report. LONG-TERM FINANCIAL PLAN UPDATE – FISCAL YEARS 2018 TO 2023 A primary focus of this financial report is to review and reconsider the Long-Term Financial Plan (LTFP), looking beyond the current fiscal year at fiscal issues facing the City on the horizon. The LTFP was presented with the fiscal year 2017-18 budget in March, May, and finally in June 2017. The changes to the LTFP from that which was presented in June 2017 include (1) modified sales tax and in-lieu motor vehicle license fee projections; (2) revised personnel costs to reflect recent labor contracts; (3) updated CalPERS rates for fiscal year 2019; (4) the addition of twelve new firefighter/paramedic positions authorized in August, 2017; (5) new technology costs in the Police Department, and (6) the change in the estimated opening of the Millennia Fire station from 2019 to 2020. Like the version shown previously in June 2017, this updated version includes cost projections for new peace officers, the new Bayfront Fire Station and new park maintenance expenses for the Millennia Parks. The purpose of this review is to highlight the structural imbalances that the City will face beginning in the next fiscal year, and to focus problem solving efforts toward a menu of viable options. These projections will continue to evolve as new information becomes available. These projections assume continued economic growth. Even a small or short-lived economic downturn will amplify the projected deficit. The table on the following page displays the updated financial projections for fiscal years 2019 through 2023. A more detailed table that includes all ten years is provided as an attachment to this report. Beginning next fiscal year, the projection is that revenue will not be sufficient to cover the City’s operating expenditures resulting in a $5.9 million deficit. Left unchecked, the deficit is projected to grow to $27.5 million in five years. This deficit is smaller than was first projected in May because of the impact of the aforementioned modifications. The net revenues Department Amended FY18 1ST QTR Budget * Expended as of 9/30/2017 % Expd City Council 1,612,138$ 462,347$ 29% Boards and Commissions 15,671$ 7,665$ 49% City Clerk 941,690$ 265,194$ 28% City Attorney 2,980,359$ 820,002$ 28% Administration 2,046,997$ 644,973$ 32% Information Technology Svcs 3,780,709$ 1,023,196$ 27% Human Resources 2,776,013$ 722,518$ 26% Finance 3,793,290$ 1,105,223$ 29% Non-Departmental 43,706,717$ 391,288$ 1% Animal Care Facility 3,006,227$ 766,984$ 26% Economic Development 1,996,875$ 640,055$ 32% Planning & Building 2,708,065$ 834,142$ 31% Engineering/Capital Project 8,687,243$ 1,056,014$ 12% Police 53,355,016$ 14,800,886$ 28% Fire 27,773,838$ 8,099,656$ 29% Public Works 17,895,714$ 5,790,033$ 32% Recreation 4,419,735$ 1,046,413$ 24% Library 3,809,784$ 1,079,202$ 28% SUBTOTAL EXPENDITURES 185,306,081$39,555,791$ 21% Prior Year Encumbrances1 5,751,121$ -$ 0% TOTAL EXPENDITURE BUDGET 191,057,202$39,555,791$ 21% 2017-11-07 Agenda Packet Page 391 Quarterly Financial Report First Quarter FY 2018 Ending September 30, 2017 Prepared – October 2017 have improved to $171.9 million compared to an original estimate of $171.7 million because of the revised projections for the In Lieu Vehicle License Fee offset to the expected decline in Sales Tax revenue. On the expenditure side, primarily because of the estimated opening of the Millennia Fire Station in 2020 rather than 2019, the projected expenditures have decreased from $178.9 million to $177.8 million. New expenditures that were not in the original plan add just over $1 million in cost in fiscal year 2018-19. These include proposed twelve new firefighter positions (Safer Grant supported), and new police technology costs. The most significant drivers for the long-term growth in the City’s expenditures are the increase in public safety costs and the increasing costs associated with public employee salaries and benefits. Even with the additional resources provided by Measure P, which are significant, the current plan is for the General Fund to add $2 million in new service levels in 2019, growing to $5 million, $7 million, $11 million, and $12 million in the subsequent four years. In addition to these new expenditures, the City’s remaining operating expenditures will also experience growth. Fiscal Year 2019 Budget Balancing The City’s options for addressing the anticipated shortfall will require new revenues, cost cutting, and cost deferments. Preliminarily, staff has identified possible savings that will accrue to the City once the Measure P projects are implemented. Future savings in utility costs have been estimated to have a mitigating impact of $800,000 in FY 2019 and as much as $1.7 million by 2023. In addition, the savings to the City if it were to make permanent the elimination of sixteen currently vacant positions has been estimated to relieve the budget by $1.0 million in 2019 and in future years as well. These sixteen positions are non-sworn and revenue neutral. If these mitigation efforts are realized, the 2019 deficit could be reduced to $4.0 million. In addition, all City Departments are presently evaluating opportunities tor reorganization or consolidation in order to affect further savings and shrink the deficit gap. These efforts alone will not be sufficient, however to eliminate the projected deficit which, in the following year, is projected to increase to $9 million, shown below. Revenue The City receives revenue from multiple sources, the primary sources being local taxes on sales and on real property. Changes in projections to these two sources have the greatest impact on the City’s financial projections. Sales Tax –Revenue from the Bradley-Burns sales tax, (1% of retail sales), continues to be the City’s largest revenue source as projected for fiscal year 2017-18, although property tax revenue would have earned this position had the Measure P Sales tax been excluded. Projected Sales Taxes make up more than 25% of projected General Fund revenues for fiscal year 2017-18. Of the $49.1 million projected, the Measure P sales taxes make up $16.3 million. Detailed collection data is provided by the State Board of Equalization and analyzed by the City’s sales tax advisor HdL Companies. The most current data available is for the second calendar quarter, April through June of 2017. Compared to the same prior-year quarter, sales tax receipts grew by a modest 1%, although there were variations within the seven major industry categories. The Autos and Transportation category showed a 3% decline in sales while the Business and Industry category increased by 10%. The largest producing industry category, in terms of gross sales, is General Consumer Goods which had zero Description FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 MAJOR DISCRETIONARY REVENUES 128.0$ 132.2$ 135.4$ 138.7$ 142.1$ OTHER GENERAL FUND REVENUES 40.7$ 40.9$ 41.2$ 41.0$ 41.3$ NEW DEVELOPMENT REVENUES 3.3$ 3.0$ 4.1$ 5.1$ 6.0$ TOTAL REVENUES 171.9$ 176.2$ 180.7$ 184.8$ 189.4$ Expenditures: PERSONNEL SERVICES 130.3$ 135.8$ 141.5$ 147.3$ 152.9$ SUBTOTAL OTHER 45.5$ 47.0$ 48.9$ 50.7$ 51.9$ NEW PROGRAMS & DEVELOPMENT 1.9$ 5.0$ 6.7$ 10.7$ 12.2$ TOTAL EXPENDITURES 177.8$ 187.8$ 197.1$ 208.7$ 217.0$ PROJECTED GENERAL FUND SURPLUS/(DEFICIT)(5.9)$ (11.7)$ (16.3)$ (23.9)$ (27.5)$ SUR/(DEF) AS % OF BUDGET -3% -6% -8% -11% -13% Forecast (MILLIONS) FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 Utility Savings: Measure P Projs 0.8$ 1.7$ 1.7$ 1.7$ 1.7$ Elimination of 16 Vacant Positions 1.0$ 1.0$ 1.0$ 1.1$ 1.1$ TOTAL W/MITIGATION MEASURES&ADMIN ACTIONS 1.8$ 2.7$ 2.7$ 2.7$ 2.8$ SURPLUS/(DEFICIT) W/MITIGATION MEASURES (4.0)$ (9.0)$ (13.7)$ (21.2)$ (24.8)$ 2017-11-07 Agenda Packet Page 392 Quarterly Financial Report First Quarter FY 2018 Ending September 30, 2017 Prepared – October 2017 growth in comparison to the same 2016 quarter. Other sectors experienced increases when compared to the same quarter in 2016; these included Fuel & Service Stations (6%), Restaurants and Hotels (5%), Building and Construction (4%) and Food & Drugs (3%). The projections include estimates for new revenue derived from new development. New Development sales tax has been reduced to reflect likely delays. Whether these new revenues materialize and whether they arrive is subject to further modification. City staff will continue to monitor sales taxes for the impact of internet sales. Taxes collected by on-line retailers go into a countywide pool and are distributed to the Cities based upon share of countywide sales rather than by population. Chula Vista represents 8.5% of the population of the County, but only 6% of the County sales. This method tends to disfavor Chula Vista and may result in further revisions to sales tax projections. Based upon HdL data analysis, the City is projected to see lower sales tax revenue than what was budgeted for fiscal year 2018. Measure P Sales Tax –The second calendar quarter of 2017 was the first quarter in which the City’s one-half cent sales tax was collected. Actual receipts of $3.94 million exceeded the $3.2 million projection by $700,000. The original projection assumed that the 0.5% Measure P transaction and use tax would net 50% of the base sales tax. This surplus revenue will provide a cushion, going forward, to cover future revenue shortfalls. Given that the trend toward online versus “brick and mortar” retail sales has had a negative impact on the City’s base revenue, this trend will spill over to the Measure P transaction tax as well. A key component of the Measure P revenue will be from car sales to Chula Vista residents from outside the City. The City will receive the transactions tax on these sales. Staff will continue working with HDL over the coming quarter to refine these projections and will report back in the next quarterly financial report. The following chart represents actual Sales Tax collections for fiscal years 2013/14 through 2016/17. The remaining chart columns display the projections from the City’s Long- Term Financial Plan estimates, including projections for revenue generated by new development. The projections for the next five years have a conservative modest growth estimate of 2.5% annually, compared to an historical growth average of 3.2% for the prior five years. SALES TAX – Historical and Projected *Note: Beginning with FY2017 Sales Tax revenue is being recorded using a 90- rather than 60-day accrual basis. As a result, the Base 1% revenue for Fiscal Year 2016-17 is inflated by the September 2016 clean up payment ($744,000) that was accrued to fiscal year 2017 under the old 60-day accrual schedule. Property Taxes - The City of Chula Vista receives a portion of the property tax revenue based upon a 1.0% levy on the assessed value of all real property. Property tax is the City’s second largest revenue source, representing 18.2% of projected General Fund revenues in fiscal year 2017-18. The assessed value of all property in the City of Chula Vista grew by 6.01% in fiscal year 2017-18 which mirrors the average growth throughout the County of San Diego. In its June 2017 annual report on property values, the County Assessor’s office attributed the increase, the fifth year of countywide increases, to the consistent steady growth in the real estate market. With median home prices having grown annually by 5-6% for several years, the Assessor projected that this growth trend would likely continue in the near future. The City of Chula Vista’s long-term financial plan, however, has been developed using growth rate of 3% for the property tax on current secured (land and improvements) and 1% on current unsecured (business equipment, boats & aircraft) property and other. $29 $30 $33 $33 $33 $33 $34 $35 $36 $37 $4 $16 $17 $17 $17 $18 $18 $0.2 $0.3 $0.5 $0.6 $0.7 $- $10 $20 $30 $40 $50 $60 $70 FY 14 FY 16 FY18P FY20P FY22PMillions Base 1% Sales Tax Measure P New Development 2017-11-07 Agenda Packet Page 393 Quarterly Financial Report First Quarter FY 2018 Ending September 30, 2017 Prepared – October 2017 These growth rates are more conservative but likely more reliable than relying upon a 5% and 6% growth factor. Worth pointing out is that the In Lieu Motor Vehicle License Fee is actually property taxes that are redistributed to municipalities as a result of 2004 legislation. The growth in this revenue is based upon the growth in the City’s assessed valuation. The growth rate that the City of Chula Vista experienced in fiscal year 2017- 18 was 6.1%, compared to the budgeted estimate of a3% growth. This growth will offset the expected decline in sales tax revenue in fiscal year 2017-18 and provides a larger base from which future increases are projected. The chart below shows actual Property Tax revenues since fiscal year 2013/14 and the projections for fiscal years 2017-18 through 2022-23, including projected growth associated with new development. PROPERTY TAXES - Historical and Projected SUMMARY AND NEXT STEPS At the conclusion of the first fiscal year quarter of 2017-18, the current year budget is on track for revenues and expenditures, with minor modifications. Staff is watching expenditures and revenue projections, particularly Sales Tax projections, to assess whether further modifications will be necessary later in the year. The longer term projections for the City’s General Fund continue to pose serious challenges because revenues will not be sufficient to cover current costs or new costs that are on the horizon. Because the City has limited abilities to impact near-term revenue, its staff and policy makers will need to focus their efforts on the cost side by finding savings, modifying service levels, cost cuts or cost delays for the upcoming year, even as efforts continue to address economic development opportunities throughout the City. The second quarter report will contain a more thorough analysis of and updates on the status of new development and major revenues derived from new development. Staff will also bring back a refreshed list of potential solutions to resolve the structural operating deficit in preparation for the fiscal year 2018-2019 budget process. This is anticipated to occur in mid-February 2018. Staff will provide baseline budget numbers for fiscal year 2018-2019 at the same City Council meeting. 2017-11-07 Agenda Packet Page 394 Quarterly Financial Report First Quarter FY 2018 Ending September 30, 2017 Prepared – October 2017 2017-11-07 Agenda Packet Page 395 City of Chula Vista Staff Report File#:17-0482, Item#: 15. RATIFICATION OF APPOINTMENTS OF THE FOLLOWING INDIVIDUALS TO THE HUMAN RELATIONS COMMISSION: - Audrey Bordeaux - Petrina Branch - Jeremy Culuko - William Felix - Robert Godinez - Bernard Gonzales - Dalia Gonzalez - Paola Martinez-Montes - Ricardo Medina - Ahmad Zadah - Susan Lake City of Chula Vista Printed on 11/2/2017Page 1 of 1 powered by Legistar™2017-11-07 Agenda Packet Page 396 2017-11-07 Agenda Packet Page 397 2017-11-07 Agenda Packet Page 398 2017-11-07 Agenda Packet Page 399 2017-11-07 Agenda Packet Page 400 2017-11-07 Agenda Packet Page 401 2017-11-07 Agenda Packet Page 402 2017-11-07 Agenda Packet Page 403 2017-11-07 Agenda Packet Page 404 2017-11-07 Agenda Packet Page 405 2017-11-07 Agenda Packet Page 406 2017-11-07 Agenda Packet Page 407 2017-11-07 Agenda Packet Page 408 2017-11-07 Agenda Packet Page 409 2017-11-07 Agenda Packet Page 410 2017-11-07 Agenda Packet Page 411 2017-11-07 Agenda Packet Page 412 2017-11-07 Agenda Packet Page 413 2017-11-07 Agenda Packet Page 414 2017-11-07 Agenda Packet Page 415 2017-11-07 Agenda Packet Page 416 2017-11-07 Agenda Packet Page 417 2017-11-07 Agenda Packet Page 418 2017-11-07 Agenda Packet Page 419 2017-11-07 Agenda Packet Page 420 2017-11-07 Agenda Packet Page 421 2017-11-07 Agenda Packet Page 422 2017-11-07 Agenda Packet Page 423 2017-11-07 Agenda Packet Page 424 2017-11-07 Agenda Packet Page 425 2017-11-07 Agenda Packet Page 426 2017-11-07 Agenda Packet Page 427 2017-11-07 Agenda Packet Page 428 2017-11-07 Agenda Packet Page 429 2017-11-07 Agenda Packet Page 430 2017-11-07 Agenda Packet Page 431 2017-11-07 Agenda Packet Page 432 2017-11-07 Agenda Packet Page 433 2017-11-07 Agenda Packet Page 434 2017-11-07 Agenda Packet Page 435 2017-11-07 Agenda Packet Page 436 2017-11-07 Agenda Packet Page 437 2017-11-07 Agenda Packet Page 438 2017-11-07 Agenda Packet Page 439 2017-11-07 Agenda Packet Page 440 2017-11-07 Agenda Packet Page 441 2017-11-07 Agenda Packet Page 442 2017-11-07 Agenda Packet Page 443 2017-11-07 Agenda Packet Page 444 2017-11-07 Agenda Packet Page 445 2017-11-07 Agenda Packet Page 446 2017-11-07 Agenda Packet Page 447 2017-11-07 Agenda Packet Page 448 2017-11-07 Agenda Packet Page 449 2017-11-07 Agenda Packet Page 450 2017-11-07 Agenda Packet Page 451 2017-11-07 Agenda Packet Page 452 2017-11-07 Agenda Packet Page 453 2017-11-07 Agenda Packet Page 454 2017-11-07 Agenda Packet Page 455 2017-11-07 Agenda Packet Page 456 2017-11-07 Agenda Packet Page 457 2017-11-07 Agenda Packet Page 458 2017-11-07 Agenda Packet Page 459 2017-11-07 Agenda Packet Page 460 2017-11-07 Agenda Packet Page 461 2017-11-07 Agenda Packet Page 462 2017-11-07 Agenda Packet Page 463 City of Chula Vista Staff Report File#:17-0470, Item#: 16. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTION 54957.6 Agency designated representatives: Glen Googins, Maria Kachadoorian, Kelley Bacon, Simon Silva, Gary Halbert, Courtney Chase, David Bilby Employee organization: Association of Chula Vista Employees (ACE) City of Chula Vista Printed on 11/2/2017Page 1 of 1 powered by Legistar™2017-11-07 Agenda Packet Page 464