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HomeMy WebLinkAboutAgenda Packet 2001/06/12 I cleclmre under penally ot perjury thai I E employ~l by the Gib/ot Chula Vi~la ~ me Office of the Gib/Clerk and that I postal ~ document on the bulletin bo~'~l il~;~;~'~li~,~ t~ Brown Act requirement. AGENDA June 12, 2001 6:00 P.M. CALL TO ORDER ROLL CALL: Councilmembers Davis, Padilla, Rindone, Salas, and Mayor Horton. PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY · OATH OF OFFICE: HELEN MARIE STOKES - COMMISSION ON AGING · OATH OF OFFICE: SUSAN CARRILLO - COMMISSION ON AGING CONSENT CALENDAR (Items 1 through 7) The Council will enact the staff recommendations regarding the following items listed under the Consent Calendar by one motion, without discussion, unless a Councilmember, a member of the public, or City 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 after Action Items. ltems pulled by the public will be the first items of business. 1. APPROVAL OF MINUTES of May 29, 2001 and May 31, 2001. Staff recommendation: Council approve the minutes. 2. WRITTEN COMMUNICATIONS A. Letter ~om the City Attorney stating that to the best of his knowledge from observance of actions taken in Closed Session on June 5, 2001, there were no actions taken which are required under the Brown Act to be reported. Staff recommendation: The letter be received and filed. B. Memorandum from the Resource Conservation Commission and staff response concerning the possible listing on the California Historic Register of the Coronado Railroad Belt Line. Staff recommendation: The letter be received and the City's position on the project be communicated to the Resource Conservation Commission and other appropriate agencies. 3. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING ORDINANCE 2799 AND APPROVING AMENDMENTS AND ADDITIONS TO THE SAN MIGUEL RANCH PLANNED COMMUNITY (PC) DISTRICT REGULATIONS FOR THE SAN MIGUEL RANCH SECTIONAL PLANN1NG AREA (SPA), TO ADD FLOOR AREA RATIO REGULATIONS AND TO AMEND LOT COVERAGE REGULATIONS (SECOND READING AND ADOPTION) When the SPA Plan and PC District Regulations were originally adopted by Council in October 1999, lot coverage regulations, which address the percent of lot area that can be covered by structures, were included in the PC District Regulations, but specific Floor Area Ratio (FAR) regulations were not. This is a City-initiated clean-up amendment to add FARs for San Miguel Ranch, similar to FARs which are used in other planned communities in eastern Chula Vista. The developer, NNP-Trimark, agrees with the proposed amendments and worked with staff in their preparation. (Director of Planning and Building) Staff recommendation: Council place the ordinance on second reading for adoption. 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING FUNDS, ACCEPTING BIDS AND AWARDING CONTRACT FOR THE MEDIAN MODIFICATIONS ON TELEGRAPH CANYON ROAD, EAST OF MEDICAL CENTER DRIVE (PROJECT ST-980) (4/5THS VOTE REQUIRED) On May 2, 2001, the Director of Public Works received sealed bids for the median modifications on Telegraph Canyon Road, east of Medical Center Drive (Project ST- 980). The work to be done includes mobilization, excavation and grading, removal and disposal of existing improvements, installation of asphalt concrete pavement, crashed aggregate base, curb and gutter, cold planing, saw cutting, four-inch stamped and colored concrete median, street lighting, pavement striping and marking, traffic control, protection and restoration of existing improvements. The work also includes all labor, material, equipment and transportation necessary for the project. (Director of Public Works) Staff recommendation: Council adopt the resolution. 5. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A FIRST AMENDMENT TO THE AGREEMENT WITH SAN DIEGO EXPRESSWAY LIMITED PARTNERSHIP TO PROVIDE LOANED EXECUTIVE SERVICES TO ASSIST IN EXPEDITING THE CONSTRUCTION OF THE SR-125 TOLL ROAD FACILITY, AND AUTHORIZING THE MAYOR TO EXECUTE THE FIRST AMENDMENT The need for the construction of SR-125 in order to continue the development in the eastern area of Chula Vista has been well-documented in all of the City's traffic studies. Page 2 - Council Agenda 06/12/01 However, the construction has become delayed due to the many state and federal processes. The City has Will Kempton of the firm, Smith & Kempton under contract for transportation advocacy services, and on September 22, 1998, the City and San Diego Expressway Limited Partnership (SDELP) entered into an agreement for the assistance of Mr. Kempton in breaking the state and federal "logjam". This item approves an extension to the agreement with SDELP to pay for services of Will Kempton under the City's contract with his firm. SDELP has requested that the term of the agreement be extended beyond the original termination date due to the ongoing need for the services. (Director of Public Works) Staff recommendation: Council adopt the resolution. 6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING RESOLUTION NO. 2001-099, APPROVING CLOSURE OF THIRD AVENUE FROM "E" TO "G" STREETS FOR THE CHULA VISTA THIRD AVENUE LEMON FESTIVAL ON AUGUST 19, 2001, TO AUTHORIZE THE CLOSURE FROM 4:00 A.M. TO 9:00 P.M., SUBJECT TO CONDITIONS On April 10, 2001, Council adopted Resolution 2001-099 authorizing the closure of Third Avenue from "E" to "G" Streets for the annual Lemon Festival, to be held by the Chula Vista Downtown Business Association (DBA) on August 19, 2001. The recent Cinco de Mayo celebration, a DBA event, had closure hours of 6:00 a.m. to 8:00 p.m. With the increased success of the event, more vendors and entertainers participated, and it proved difficult for the DBA, City staff, volunteers and vendors to prepare for or take down the event in the amount of time allotted. The Lemon Festival, traditionally, has been a larger event than the Cinco De Mayo Festival. (Director of Community Development) Staff recommendation: Council adopt the resolution. 7. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING UNANTICIPATED GRANT REVENUES IN THE AMOUNT OF $25,000 FROM THE STATE OF CALIFORNIA FOR THE COLLECTION OF TRAFFIC STOP DEMOGRAPHIC DATA IN THE CITY OF CHULA VISTA, AS PART OF A STATE-WIDE STUDY OF RACIAL PROFILING The State of California and the California Highway Patrol have received grant funds to distribute to California local law enfomement agencies to offset the costs created by the collection of traffic stop demographic data. This is part of a state-wide effort to better understand the practice known as "racial profiling" and to assist in the development of deterrents where necessary. The grant provides $25,000 annually for a two-year period, ending in 2003. (Chief of Police) Staffmconunendation: Council adopt the resolution. Page 3 - Council Agenda 06/12/01 ORAL COMMUNICATIONS Persons speaking during Oral Communications 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 generaIly prohibits the Council from takt'ng action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff Comments are limited to three minutes. PUBLIC HEARINGS The following items have been advertised and/or posted as public hearings 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. 8. CONSIDERATION OF APPROVAL OF TENTATIVE SUBDIVISION MAP PCS-01- 04 TO DEVELOP NINE LOTS FOR SINGLE-FAMILY HOMES AT THE WESTERN EXTENSION OF EL LORO STREET (APPLICANT - DAN iRWIN) The developer requests approval for a nine-lot subdivision known as Vista Del Loro, a western extension of El Loro Street. The project site is located in an existing single- family residential (R-l-7) zone, with a Montgomery specific plan land use designation of low/medium density residential (6-11 dwelling units per acre), and a general plan land use designation of low/medium residential. (Director of Planning and Building) Staff recommendation: Council open the public hearing and continue it to the Council Meeting of June 19, 2001. 9. CONSIDERATION OF ADOPTION OF A RESOLUTION AIViENDING THE CURRENT YEAR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) ANNUAL PLAN TO YNCLUDE THE NYPRO SAN DIEGO PROJECT NYPRO San Diego, a global manufacturer of custom injection molded products is seeking financial assistance from the City to replace existing inefficient machinery with new energy-efficient injection-molding machines. The new equipment purchase will allow NYPRO to realize significant energy cost savings, thereby allowing NYPRO to retain 120 jobs by maintaining its facility in Chula Vista, and to expand its operations, creating 30 new jobs. (Director of Community Development) Staff recommendation: Council conduct the public hearing and adopt the following resolution. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMEND1NG THE CURRENT FISCAL YEAR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) ANNUAL PLAN TO iNCLUDE THE NYPRO SAN DIEGO PROJECT TO PURCHASE ENERGY- EFFICIENT EQUIPMENT USING A SECTION 108 LOAN; AND AUTHORIZING STAFF TO SUBMIT A SECTION 108 LOAN GUARANTEE PROGRAM APPLICATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Page 4 - Council Agenda 06/12/01 ITEMS PULLED FROM THE CONSENT CALENDAR OTHER BUSINESS 10. CITY MANAGER'S REPORTS A. Scheduling of meetings. 11. MAYOR'S REPORTS A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OPPOSiNG THE RECOMMENDATION OF THE BOARD OF TRUSTEES OF THE SAN DIEGO COUNTY PUBLIC LAW LIBRARY TO CLOSE THE SOUTH COUNTY LAW LIBRARY The Board o£Trustees o£the San Diego County Public Law Library is planning to immediately close the South County branch, located in the South County Courthouse in Chula Vista, while leaving open the Main, East County and North County branches. Each courthouse in the County has a public law library. The law libraries are an essential resource for attorneys practicing in the courthouses. Mayor's Recommendation: Council adopt the resolution and authorize the Mayor to send the resolution to the San Diego County Board of Supervisors and the Board of Trustees o£ the San Diego County Public Law Library on behal£ of the City. B. Ratification of appointment to the Commission on Aging - Mary Jo Buettner. 12. COUNCIL COMMENTS CLOSED SESSION 13. CONFERENCE WITH LEGAL COUNSEL REGARDiNG INITIATION OF LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(C) · One Case 14. CONFERENCE WITH LEGAL COUNSEL REGARDiNG EXISTiNG LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(A) · Miller v. City of Chula Vista (BCS GIS 5987) 15. CONFERENCE WITH LEGAL COUNSEL REGARDiNG SIGNIFICANT EXPOSURE TO LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(B) · One Case ADJOURNMENT to the Adjourned Regular Meeting on June 13, 2001 at 4:00 p.m. in the Council Conference Room, and thence to the Adjourned Regular Meeting on June 19, 2001 at 4:00 p.m. in the Council Chambers. Page 5 - Council Agenda 06/12/01 CI~Y OF CHUIA VISTA OFFICE OF THE CITY A"I-rORNEY Date: June 6, 2001 To: The Honorable Mayor and City Council From: Ann Moore, Senior Assistant City Attorney Re: Report Regarding Actions Taken in Closed Session for the Meeting of ~5/01 The Redevelopment Agency of the City of Chula Vista met in Closed Session on ~'~01 to discuss: · CONFERENCE WITH REAL PROPERTY NEGOTIATOR PURSUANT TO GOVERNMENT CODE SECTION 54956.8: Property: Assessor Parcel Nos. 568-270-03; 568-270-11 (approximately 2.85 acres located at the southeast corner of Fourth Avenue and F Street) Negotiating City Council/Redevelopment Agency (Sid Morris/Chris Parties: Salomone) and Chula Vista Center {Robert Caplan) Under Negotiation: Price and terms and terms for acquisition The Senior Assistant City Attorney hereby reports to the best of her knowledge from observance of actions taken in the Closed Session in which the Senior Assistant City Attorney participated, that there were no reportable actions which are required under the Brown Act to be reported. AYM:lgk 276 FOURTH AVENUE · CHULA VISTA · CALIFORNIA 91910 · (619)691-5037 · FAX (619~ 409-582,~ ~1~{~~'~ Community Development Departmenl City Of Chula Vista INFORMATION 276 Fourth Avenue Chula Vista, Ca 91910 CI]Y OF 619.691.5047- 619.476.5,10 Fax MEMO CHULA VISTA cvcorndev@ci,ch ula-vist a.ca.us TO: The Honorable Chair and Members of the Re~le,velopment Agency VIA: David D. Rowlands, Jr., Executive Director ~,~ 7 FROM: Chris Salomone, Executive Secretary (..~ ' DATE: June 7, 2001 RE: Letter received from Resource Conservation Commission dated April 16, 2001 The attached letter from the Resource Conservation Commission (RCC) is being provided to Council per their request. Staff feels it is important that the following information also be provided: On April 2, 2001 the Resource Conservation Commission received a presentation on behalf of Save Our Heritage Organization which called for the listing of the Coronado Belt Line on the California Historic Register. At the same meeting Community Development staff provided an overview of the pertinent actions to date by the City Council of the City of Chula Vista and other responsible agencies to include: July 27, 1999 - City Council supports the abandonment of the Coronado Belt Line along the Chula Vista Bayfront August 12, 1999 - After a presentation by Mayor Horton and others the MTDB Board of Directors took the following actions: · Approved a Bike Path License Agreement for the portion of the line from Imperial Beach to the Western Salt plant · Approved the Negotiation of License Agreements to use the Coronado Belt south of F Street for bike paths, to accommodate development, use for parking, etc. · Approved in concept the abandonment of the line from F Street south · Referred the Analysis of the Use of the portion of the Coronado Belt Line from F Street north to National City to a Committee for recommendations Additionally, on May 10, 2001, the MTDB board of Directors voted (14-1) to support the recommendation to discontinue use of the Coronado Branch Railway line south of "F" Street along our Bayfront. MTDB and the Port and City staff will begin negotiating a lease of the Railway right-of-way for 66 years. The motion included potential joint utility uses for the rail corridor. Relocation of the ROW was deemed infeasible. City Council direction has been consistent with the abandonment of the right of way for accessory use to development. Despite this input from staff, RCC is recommending historic designation of the ROW. The RCC indicates in its memorandum to Council, dated May 15, 2001, that the listing of the Belt Line on the State Historic Register will not impede future development of the bayfront - that Letter from RCC Page /12 June 7, 2001 these are "two very separate issues." However, in discussions with the State Office of Historic Preservation (OHP), the listing of the Belt Line as an historic resource would serve as evidence of findings of historic significance in future environmental (CEQA) reviews of any project proposal for the bayfront area. As such, the environmental impacts of a project on the historic resource list would need to be determined, evaluated, and mitigated if necessary. If mitigation of a significant environmental impact is not possible, a project could not be approved unless the City can make a statement of overriding considerations with supporting findings. The State Historic Register Coordinator has indicated that Mr. Bevil has filed an application for listing on behalf of SOHO and that a public hearing before the State Historical Resources Commission has been set for August 3, 2001 in Long Beach. Unless the City Council otherwise directs, City staff shall communicate the City's opposition to the proposed designation to the RCC and take all appropriate measures to discourage such designation by the State. Attachments 1 - Minutes from the 4/2/01 RCC meeting 2 - Memo to City Council from RCC dated May 15, 2001 ATTACHMENT 1 MINUTES OF A REGULAR MEETING OF THE RESOURCE CONSERVATION COMMISSION April 2, 2001 DRAFT Mercy Building Conference Room 430 "F" Street MEETING CALLED TO ORDER: Commissioner Teresa Thomas called the meeting to order at 6:45 p.m. ROLL CALL/MOTION TO EXCUSE: Motion to excuse Chair Cindy Burrascano and Vice-Chair Charles Bull was not executed. MEMBERS PRESENT: Commissioners Teresa Thomas, Steve Thomas, Juan Diaz and Pam Bensoussan STAFF PRESENT: Marilyn Ponseggi, Environmental Review Coordinator Brian Hunter, Planning & Environmental Manager Linda Bond, Recording Secretary OTHERS PRESENT: Alex Bevil, Historical Consultant Chalmers Kerr, San Diego Railroad Museum Bruce Semelsberger, San Diego Railroad Museum James McVeigh, 644 Second Avenue Steven Veach, 657 20th Street, San Diego Louise Torio, 657 20th Street, San Diego APPROVAL OF MINUTES: March 5, 2001 Approval of the March 5, 2001 minutes was postponed until after the presentation. ORAL COMMUNICATIONS: None. OLD BUSINESS 1. Presentation by Alex Bevil regarding the Coronado Branch Railway Line Mr. Alex Bevil (historical consultant) gave a PowerPoint presentation on the Coronado Railroad Belt Line. He presented the interrelationship between the historic use of a transportation network and its association with the Coronado Railroad Belt Line. The existing physical remains of the Belt Line is a 7.5-mile railroad right-of-way between National City, south through Chula Vista, Imperial Beach to the base of the Silver Strand. The San Diego Save Our Heritage organization hired him to investigate the history of the Coronado Belt Line: 1 ) to determine the right-of-way's historic significance, and 2) its eligibility under CEQA. He described the CEQA criteria for historical designation. DRAFT RCC Minutes - 2 - April 2, 2001 Mr. Bevil indicated that members of the State Resources Board would be coming down to tour the line on May 16, 2001 at 1:00 p.m. He invited the RCC members to participate. Ms. Marilyn Ponseggi (Environmental Review Coordinator) indicated that RCC could not hold a meeting out of the City. She further clarified that the City Council has taken action not to support retaining the right-of-way without asking the RCC to look into it, and the right-of-way is not entirely within the City. She needed to check with the City Attorney to find out exactly how to handle this because the Brown Act regulates RCC activities. Mr. Bevil stated that the railroad is one of the earliest independent interurban short steam rail lines in San Diego County. Its original 20.3-mile route provided direct steam freight and limited passenger rail service to the resort community of Coronado and downtown San Diego. According to Mr. Bevil, it has a period of historic significance from 1888 to 1950 where it was the major contributor to the economic development of Coronado including National City, Chula Vista and Imperial Beach. Mr. Bevil further stated that it is significant also through its various corporate lives. The line provided convenience for the transfer of bulk agricultural and industrial raw materials. It was also a critical hauler of strategic material during both World Wars. According to Mr. Bevil, with limited use today, the surviving 7.5-mile right-of-way from National City south to Imperial Beach continues to retain historical significance. Commissioner Bensoussan proposed that the RCC vote to write a letter of support for designation of the railroad right-of-way as a State historical resource. Ms. Ponseggi indicated that the RCC could recommend that the City Council support the action since the RCC is a recommending body to the City Council. Mr. Brian Hunter (Planning & Environmental Manager) stated that in 1986, the City sent an Environmental Impact Report (EIR) to the State of California stating that the City was planning on developing the Bayfront. At that time, the City did not receive any comments from the State that there was any issue with that development, which included removing the railroad tracks. In 1992, the City redid that EIR and again sent it to the State. Again, there was no comment. Neither of the previous EIRs identified the right-of-way as a significant historic resource. In 1999, MTDB (owner of the line) looked at the potential abandonment of that railway line. Mr. Hunter read portions of a letter that Councilman Jerry Rindone had written to Mr. Jack O'Lexey, dated February 7, 2001. "The City has taken the position that the Coronado Branch Line should be abandoned in order to complete the long-planned bicycle path that will circle San Diego Bay, You should also be aware that the Metropolitan Transportation Development Board (MTDB) took formal action to abandon DRAFT RCC Minutes - 3 - April 2, 2001 the line on August 12, 1999 and recently reaffirmed their decision. In addition, the San Diego Unified Port District has also called for the line to be abandoned in order to facilitate redevelopment of the B.F. Goodrich campus." Councilman Rindone is the City's representative to MTDB. Commissioner Bensoussan stated that she spoke with Diane White of MTDB that day at which time Ms. White confirmed MTDB has not formally abandoned the rail line. Commissioner Bensoussan read portions of an agenda, etc. about studies that are going on. "]'he Port of San Diego has appointed three of its members to the Metropolitan Freight Rail Committee. They will be participating with the MTDB Board members. The first meeting of the Committee is set for March 7, 2001. Mr. Linburr and I have met with City Managers of National City and Chula Vista and will meet with the City Manager of Imperial Beach and ports south to get a better understanding of the issues in each of those jurisdictions relative to the Coronado Brandh Line and the various plans for development on the line. We are continuing to have a dialogue with Rail America and the San Diego and Imperial Valley Railroad relative to the legal and financial issues involved in the formal abandonment and the central processes of discontinuing its service. We will continue to report back periodically through the Board on our progress in these matters." She felt it was within the scope of RGG to determine if things in Chula Vista have historic significance and to ask the City Council to look at the questions supporting historic designation. Ms. Ponseggi indicated that making a recommendation such as that to the City Council is within RCC authority. The RCC could designate a member to go to a City Council meeting under 'Oral Communications' and let them know what your thoughts are on this, and ask them if they would like to put it on the agenda for consideration. The RCC could also send the City Council a letter. MSC (Bensoussan/S. Thomas) to support historic designation on the California Historical Register of the Coronado Belt Line Railroad right-of-way and direct Commissioner Bensoussan, on behalf of the Resource Conservation Commission, to draft a letter to the City Council stating so, to be considered by the RCC at their next meeting. Vote: (4-0-0-2) with Burrascano and Bull absent. Commissioner T. Thomas requested that Mr. Bevil's presentation be attached to the minutes. Ms. Ponseggi advised against that. The RCC might be better off to make it an attachment to your letter to the City Council, which would make sure that they see it. Mr. Bevil indicated that he would send the presentation to Commissioner Bensoussan. MSC (Bensoussan/S. Thomas) to amend the motion to include Mr. Bevil's presentation as an attachment to the draft letter. Vote: (4-0- 0-2) with Burrascano and Bull absent. Rcc .4. DRAI: 2 2001 NEW BUSINESS: None. APPROVAL OF MINUTES (Cont'd) MSC (Bensoussan/S. Thomas) to approve the March 5, 2001 minutes as submitted. Vote: (4-0-0-2) with Burrascano and Bull absent. ENVIRONMENTAL REVIEW COORDINATOR COMMENTS: Ms. Ponseggi announced that the annual Awards Banquet would take place on Thursday, May 17, 2001, at 6:00 p.m. at the San Diego Country Club. The Commissioners will be receiving invitations. Staff will be forwarding all of the information as to RCC's two nominations and why on to the Mayor's office so that those presentations will be made at the banquet. CHAIR COMMENTS: None. COMMISSIONER COMMENTS Commissioner Bensoussan indicated that RCC forgot to address the question of the train ride tour. Ms. Ponseggi again cautioned the Commissioners. Commissioner T. Thomas asked if staff was still getting the response on the Mills Act? Ms. Ponseggi indicated that the staff member who is preparing it is well aware of the fact that the Commission wants to look at it before it goes. Commissioner Bensoussan handed out informational packets regarding the Mills Act. Commissioner Bensoussan distributed pamphlets regarding the Historical Home Tour on May 12, 2001. Any Commissioners and City employees who wish to go are comp. Ms. Ponseggi asked for and was given extra pamphlets to be placed on the Planning and Mercy Building counters. An e-mail would be sent to Planning Department staff regarding the tour. Ms. Ponseggi will keep a list of names and pass it on to Commissioner Bensoussan. ADJOURNMENT: Commissioner T. Thomas adjourned the meeting at 9:25 p.m. to a regular meeting on Monday, April 16, 2001, at 6:30 p.m. in the Mercy Building Conference Room, 430 'F' Street, Chula Vista, CA. Prepared by: Lir(Sa Bond Recording Secretary ATTACHMENT 2 DATE: May 15, 2001 TO: The Honorable Mayor and City Council Members FROM: Resource Conservation Commission SUBJECT: A CHULA VISTA HISTORICAL RESOURCE: THE CORONADO RAILROAD BELT LINE AND ITS POSSIBLE LISTING ON THE CALIFORNIA HISTORIC REGISTER On April 2, 2001, the Resource Conservation Commission was given a presentation by hi:;~orian Alex Bevil about the Coronado Railroad Belt Line. Brian Hunter, the city's Planning and Environmental Manager for Community Development, provided an update on the City o[ Chula Vista's future plans for the bay front area. Mr. Bevil is writing a designation report on t:,ehalf of an organization named Save Our Heritage Organisation to have the Coronado Railroad Belt Line listed on the California Historic Register. The historian's presentation convincingly documented the fact that the Coronado Belt Line has had significant impact on Chula Vista's formative years and helped chart the coarse, fo~' the entire South Bay region. As such, the commission voted unanimously on April 2 to recommend supporting the listing of the Belt Line on the State Register. A listing on the California Historic Register would recognize the importance that the Coronado Belt Line has had in the development of the South Bay, but it would not guarantee preservation of the Coron~¢:lo Belt Line or prevent any future development of the Chula Vista waterfront. An outline of Mr ~;vil's presentation citing the qualifying criteria is attached. The commissioners came to this decision with its responsibilities in mind. These respor~.,~ibilities are spelled out in Chapter 2.32 of the Chula Vista Municipal Code. Resource Conserw~tion Commissioners are entrusted to make recommendations to City Council under the following guidelines: "to provide citizens advice to the city council in the areas of energy cons~rv~tion, resource recovery, environmental quality, historic and prehistoric site protectiion, and other related fields" (2. 32. O~ 0-Purpose & Intent) "Safeguard the city's historic, aesthetic, social, economic, political and architectural past;" (2.32. 030 J - Goals and Policies) "Recommend to the city council the designation of any site which it has found t~ meet the criteria as a historical site" (2.32.070 A - Historical Protection) The recognition of the importance of this railroad by potential listing on the California Hi~;toric Register is in no way associated with the preservation of the right of way. These are '~wo very separate issues. Listing the Belt Line on the State Historic Register will not prevent pos,';ible and future development of the Chula Vista bay front, as outlined by Mr. Hunter's discussion of possible future plans for the area. Future bay front development plans may actually b,;r~ei'it by such a listing through tax break incentives available when incorporating a designatec historic entity within a development project. With this in mind, we recommend the viewing of M~ Bevil's presentation and respectfully request that the Chula Vista City Council support hi,.;toric designation for the right of way in order to benefit the citizens of Chula Vista in ew.~ry way possible. Attachment The Coronado Railroad Belt Line Alexander D. Bevil Historian specializing in historic land use studies; historic site designation at national, state and local levels Project Scope Retained by Save Our Heritage Organisation to investigate the history, historical significance and potential for designation to the California Historic Register of surviving remnant of the Coronado Belt Line Resource Description A 7.5-mile railroad right-of-way between National City south through Chula and Imperial Beach to the base of the Silver Strand Description of CEQA Review levels of Criteria for listing on the California Register of Hisloric Resources Historic Significance The surviving segment of the original 20.30-mile Coronado Belt Lin~ is historically significant on the local level under Criteria 1of the California Register of Historic Resources and Criteria A of the National Register of Historic Ph~ces due to the following: · One of the earliest independent interurban short steam rail lines in San Diego County, its original 20.30-mile route provided direct steam freight and limited passenger rail service between the resort community of Coronado and downtown San Diego · During its period of historic significance from 1888 to 1950 it was a major contributor to the economic development of Coronado, as well as o[her suburban communities along its right-of-way, including National City, C!'~ula Vista, and Imperial Beach. · Through its various corporate lives as the Coronado railroad, the san Di'ego Southern, the San Diego & Southeastern, the San Diego & Arizona, and finally the SD & Arizona eastern railway, the line provided the means fo~ the transport of bulk agricultural and industrial raw materials from the region to San Diego's harbor and transcontinental rail ~inks throughout the Urdt:ed States · Besides shipping bulk agricultural and industrial raw materials, the line was also a critical hauler of strategic war materiel in and out of important local industries during both world wars · Western Salt Works at La Punta · Hercules Powder Factory at Gunpowder Point · RohrAircraft Plant A section of the line between National City and Chula Vista shared service with an electric traction interurban passenger line · The forerunner of today's San Diego Trolley, the line served as part ol key electric trolley commuter route that connected the south bay to downtown San Diego's business center Coronado Belt Line is also historically significant on the local level under Crit,.:,.ria 3 the California Register of Historic Resources and Criteria C of the National Register of Historic Places due to the following: · The surviving 7.5-mile segment of railroad right-of-way including its roadbed, rails, ties, switches, and wooden trestles, represents a type, period method of late 19th century and early 20th century railroad constructio~ techniques and materials. · While these components may lack individual distinction, together they represent a significant and distinguishable entity Historical Integrity The surviving 113-year old right-of-way is still able to convey its significance and association with the original 20.30-mile Coronado Belt Line through the following: · Its location, design, setting, materials, and feeling · Its historic association with one of San Diego's earliest locally owned a,'~d operated interurban short lines, which served as a vital rail transportation corridor linking the South Bay with Coronado, San Diego, and transcontinental rail links throughout the United States AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING ORDINANCE 2799 AND APPROVING AMENDMENTS AND ADDITIONS TO THE SAN MIGUEL RANCH PLANNED COMMUNITY (PC) DISTRICT REGULATIONS. I. RECITALS A. Project Site WHEREAS, the areas of land which are the subject of this Ordinance are diagrammatically represented in Exhibit 1 attached hereto, and for the purpose of general description consist of a 743.1 acre area north and east of Proctor Valley Rd., south of Sweetwater Reservoir and the SDG&E Miguel Substation, and west of Rolling Hills Ranch, commonly known as the San Miguel Ranch Planned Community ("Project Site"); and B. Project; Application for Discretionary Approval WHEREAS, on November 13, 2000, the City of Chula Vista Planning and Building Department ("Applicant") filed an application requesting approval of amendments and additions to the Planned Community (PC) District Regulations of the Sectional Planning Area (SPA) Plan for the San Miguel Ranch Project Site ("Project") to establish Floor Area Ratio (FAR) standards, hereto incorporated as Exhibit 2; and, C. Prior Discretionary Approvals WHEREAS, the Project site has been the subject matter of a Sectional Planning Area (SPA) previously approved by City Council Resolution No. 19631 on October 19, 1999; and WHEREAS, the Project site has been the subject matter of City Council Ordinance 2799 adopting Planned Community District Regulations, approved on October 19, 1999; and WHEREAS, the Project site has been the subject matter of a third-tier Final Subsequent Environmental Impact Report 97-02 (FSEIR 97-02) for the above SPA previously certified by City Council Resolution No. 19630 on October 19, 1999; and D. Planning Commission Record on Applications WHEREAS, the Planning Commission held an advertised public hearing on said project on May 23, 2001, and voted 5-0-2 to recommend that the City Council approve the Planned Community District Regulations text in accordance with the findings listed below. The proceedings and all evidence introduced before the Planning Commission at their public hearing on this Project held on May 23, 2001, and the minutes and resolutions resulting therefrom, are hereby incorporated into the record of this proceeding. Ordinance No. Page 2 E. City Council Record on Applications WHEREAS, a duly called and noticed public hearing was held before the City Council of the City of Chula Vista on June 5, 2001 on the Project, and to receive the recommendations of the Planning Commission, and to hear public testimony with regard to same; and, F. Discretionary Approvals Resolution and Ordinance WHEREAS, at the same City Council meeting at which this ordinance was introduced for first reading ( June 5,2001), the City Council of the City of Chula Vista approved Resolution No. by which it certified an Addendum to FSEIR 97-02 for the San Miguel Ranch Project subject to the findings and conditions contained therein. II NOW, THEREFORE, the City of Chula Vista does hereby find, determine and ordain as follows: A. CERTIFICATION OF COMPLIANCE WITH CEQA The City Council certified by Resolution No. an Addendum to the FSEIR-97-02 in accordance with requirements of the California Environmental Quality Act, the State EIR Guidelines and the Environmental Review Procedures of the City of Chula Vista. B. INDEPENDENT JUDGEMENT OF CITY COUNCIL The City Council exercised their independent review and judgement with respect to the Addendum to FSEIR 97-02 in the form presented, and has determined that said document was prepared in accordance with requirements of the California Environmental Quality Act, the State EIR Guidelines and the Environmental Review Procedures of the City of Chula Vista. C. FINDINGS FOR P-C PLANNED COMMUNITY ZONE AMENDMENTS The City Council hereby finds that the findings and determinations set forth in Ordinance 2799 continue to be true and correct, and the proposed amendments and additions San Miguel Ranch Planned Community District Regulations are consistent with the City of Chula Vista General Plan, and public necessity, convenience, the general welfare and good zoning practice support the proposed documents. D. APPROVAL OF ZONING REGULATIONS The City Council does hereby approve the amendments and additions to the San Miguel Ranch Planned Community District Regulations which add Floor Area Ratio standards for San Miguel Ranch as represented in Exhibit 2. Ordinance No. Page 3 III. INVALIDITY; AUTOMATIC REVOCATION It is the intention of the City Council that its adoption of this Ordinance is dependent upon the enforceability of each and every term, provision and condition herein stated; and that in the event that any one or more terms, provisions or conditions are determined by a Court of competent jurisdiction to be invalid, illegal or unenforceable, this resolution shall be deemed to be automatically revoked and of no further force and effect ab initio. IV. EFFECTIVE DATE This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Presented by Approved as to form by Robert A. Leiter John M. Kaheny Director of Planning City Attorney PASSED, APPROVED, and ADOPTED by the City Council of the City of ChulaVista, California, this 5th day of June, 2001, by the following vote: AYES: NAYS: ABSENT: ABSTAIN: Shirley Horton, Mayor ATTEST: Susan Bigelow, City Clerk (H:\ATTORN EY\SAN-MIG\SMR-FA R-CC-ORD~DOC) EXHIBIT- 1 ORDINANCE NO. PAGE BONITA SUNNYSIDE PROJECT LOCATION ROLLING CHULA VISTA PLANNING AND BUILDING DEPARTMENT LOCATOR PROJECT City of Chufa Vista PROJECT DESCRIPTION:  ^PP,,c^;: San Miguel Ranch PROJECT North of Proctor Valley Rd Request: To approve amendments and additions to ADDRESS: & West of Rolling Hills Ranch San Miguel Ranch planned community district regulations (zoning) to add floor area ratio development standards and SCALE: FILE NUMBER: amend building coverage development standards. · NORTH No Scale PCM-01-07 Ordinance No. Exhibit 2 Page 1 of 4 TABLE of CONTENTS (Continued) CHAPTER/SECTION PAGE 9.4 Parking Development Standards ...................................................... 63 9.4.1 General Requirements .......................................................... 63 9.4.2 Special Requirements ........................................................... 64 9.5 Performance Standards .................................................................. 65 Chapter X ADMiNISTRATION .................................................................... 67 10.1 Purpose .................................................................................... 67 10.2 Standard Procedures ..................................................................... 67 10.3 Administrative Review ................................................................... 67 10.4 Site Plan and Architectural Approval .................................................. 68 10.5 Conditional Use Permit Review ......................................................... 68 10.6 Other Provisions ........................................................................... 69 FIGURES PAGE Figure 2-1 SPA Land Use District Plan ............................................................... 3 Figure 2-2 Measuring Locations for Building Setbacks ........................................... 15 Figure 2-3 Measurements for Minimum Lot Area and Setbacks for Lots with Internal Slopes .............................................................................. 16 Figure 2-4 Measurement of Split Side Yard Requirements ....................................... 17 TABLES PAGE Table 2-1 Chart of SPA Land Use Districts ......................................................... 5 Table 2-2 Permitted Use Matrix-Residential Districts ............................................ 10 Table 2-3 Development Standards Residential Districts ....................................... 13 Table 2-3A Development Standards - Residential Districts (Rev. 6/05/01) ................ 13A Table 2-3B Maximum Building Area ............................................................. 14B Table 2-4 Permitted Use Matrix-Commercial District ............................................ 22 Table 2-5 Development Standards - Conunercial Districts ...................................... 28 Table 2-6 Permitted Use Matrix Community Purpose Facility District ...................... 30 Table 2-7 Development Standards - Community Purpose Facility District .................... 32 Table 2-8 Temporary Uses ............................................................................ 38 Table 2-9 Off-Street Parking Requirements ......................................................... 61 Table 2-10 Parking Table Design Standards ......................................................... 64 San Miguel Ranch Spa Plan Volume 2 PC District Regulations NNP Tfimark Pacific San Miguel LLC June 5, 2001 Page TOC-3 Ordinance No. Exhibit 2 Page 2 of 4 Development Standards Table 2-3A (Revised 6/05/01) Land Usc Distr/ct SFE SF1 SF2 SF3 SF4 SF5 SFA MFI Min. Lot Area (square feet) 20,000/ 7,000 6,000 b 5,000 b 4,500 b 4,000 ~ SP N/A Measured 100 a 60 55 * 50 c 50 ~ SP SP N/A Knuckle or cul<le-sac 40 35 35 35 35 SP SP N/A Frontage Flag lot frontage 20 20 20 20 20 SP SP N/A Min. Lot Depth (feet)* 120 100 90 90 80 SP SP N/A Maximum lot coverage 35 45 5~ ~ 5 15~-50 55 SP SP SP (percen0 Floor Area .45 .50 .55 .60 .60 SP SP SP Front Yard Minimum Setback r To house 25 20 15 15 15 SP SP SP To direct entry garage 25 20 g 20 ~ 20 g 20 g SP SP SP To side entry garage 25 20 15 15 15 SP SP S P To porch 20 17 17 17 15 SP SP SP Side Yard Minimum Setbacks (feet) ~ ~* To adjacent residential lot 15/10 i 10/5 i 10/5 i 5/5 5/5 SP SP S P To adjacent street (exterior 20 I 0 10 10 10 S? SP SP side yard) Rear Yard Minimum Setback (feet)n h To housel 25 k 20 15 15 15 S? SP SP To garage with minimum 25i 15 5 5 5 SP SP SP 30-foot driveway feeff# stories) 2 stories 2 stories 2 stories 2 stories 2 stories 2 stories 2 stories 3 stories 2 garage 2 garage 2 garage 2 assigned spaces, 1.5-1 BR Parking Required (Off'- 2 garage 2 garage 2 garage spaces ~ spaces ~ spaces ~ min. 1 covered. 2.0-2BR Street spaces per Unit) "' spaces spaces spaces Guest- 0.33/ 2.5-3BR+ Unit° Guest- 0.33/ Unit° San Miguel Ranch SPA Plan Volume 2 - PC District R~ ~lations NNP - Trimark Pacific, San Miguel LLC 13A June 5, 2001 Ordinance No. Exhibit 2 Page 3 of 4 Table 2-3A Notes: a. Within the SFE Dis[ricts, including Planning Areas K and L, the standard minimum lot size is 20,000 square feet, however, up to 25% of the lots may be a minimum of 15,000 square feet, provided that the overall average lot size within Planning Areas K and L is not less than 20,000 square feet. b. Minimum lot area applies to the graded pad area of the lot (exclusive of slopes) in the SF3, SF4 and SF5 Districts. Minimum pad area within the SF2 District shall be 5500 square feet. c. Lot widths and depths are typical minimums but may vary slightly with irregularly shaped lots and site specific conditions. Such variations are subject to approval of a variance, except where the variance requirements can be fulfilled by site plan review required by other provisions of these regulations. Minimums such as lot width and depth may not be used in tandem where they would result in lot area which does not meet the minimum lot area requirement. d. The minimum lot width in SFE areas may be reduced to 90 feet for lots which are less than 20,000 square feet as allowed by Note "a" above. e. For lots with minimum widths of 55 feet or less, the minimum width standard shall apply to the level pad area (exclusive of any side slope within the lot) and for purposes of this provision, the minimum width may be measured at the building line at the front yard setback. f. Amhitectural features, such as eaves, awnings, chimneys, niches up to 12 feet in length, balconies, steps, stairways, or bay windows may project not more than four feet into any required front or rear yard area, and not more than two feet into any required side yard. g. May be reduced to 18 feet with use of roll-up garage door, except that in no case shall the distance to the nearest edge of sidewalk be less than 20 feet. h. Building setbacks shall be measured per Figure 2-3, which includes the following provisions: The minimum level area within any side yard shall be 5 feet to top or toe of slope or base of wall for lots with internal slopes. The maximum height of a retaining wall in a side yard is 3 feet. The maximum height ora retaining wall in a rear yard is 5 feet, and where a retaining wall is greater than 3 feet high, a minimum 4- foot horizontal separation is required between the retaining wall and a freestanding fence or wail. The rear yard setback shall be based on the level pad area, measured from the top or toe of slopes for lots with internal slopes. Where there are slopes within the side yard of a lot, building setbacks shall be measured per Figure 24. j. in situations where the lot configuration has irregular angles, or otherwise results in an odd- shaped lot or building pad, these minimums may be reduced subject to approval by the Director of Planning and Building. k. The minimum rear yard setback is increased to 50 feet for all lots in Planning Area L whose property line(s) abut the SPA boundary of San Miguel Ranch. 1. Building Height may be increased to 35 feet with Site Plan approval. m. Parking standards for Senior Citizen or "affordable" residential development may be reduced from those specified in the District in which it will be located. Such a reduction shall be at the discretion of the City Council through the Conditional Use Permit procedure (CVMC 19.14.080), and subject to a parking study prepared by a registered traffic engineer to ensure adequate parking will be provided. n. Guest parking is encouraged to be provided for single family products, in addition to onsite driveway spaces, either on the street where width allows, or in designated parking bays. o. Required guest parking spaces shall be marked and clearly identified as guest parking. The guest parking spaces shall not be permitted to be assigned to individual dwelling units. "p." "The allowable building area for construction of dwellings~ or any remodeling or additions to dwellings for each lot shall be as determined in table 2-3B below. The maximum building area for single family detached and attached products, garages~ and other accessory structures shall be the square footage listed or that permitted by the percentage of lot area, whichever is less. Homeowner additions shall be allowed only where consistent with these standards. A 300 square foot open patio (covered but open on three sides) shall be permitted on each residential lot and shall be exempt from inclusion in this calculation. All residential development proposals are subject to review for consistency with the San Miguel Ranch Design Guidelines~ Residential Design Guidelines Section 4.5 (Single Family) or Section 4.6 (Multi-Family)." San Miguel Ranch SPA Plan Volume 2 PC District Regulations NNP - Trimark Pacific, San Miguel LLC 14A June 5, 2001 Ordinance No. Exhibit 2 Page 4 of 4 Table 2-3B: Maximum Building Area San Floor Area Maximum M~ Ratio Building Area Ranch (F.A.IL) (Sq. Ft.) District SFE .45 N/A * I SFJ .5~0 4500 , SF2 .55** 4300 ! SF3 .60** 4000 SF4 .60** 3100(E)*** i 3500 (G) SF5 SP SP SFA se ! sJ~ MF Se S~' Table notes: * Maximum allowable building area will be regulated by coverage and setback regulations in the SFE Land Use District. ** The maximum allowable F.A.R.'s in the SF2, SF3 and SF4 Districts are as follows. Lots numbers are as shown on Chula Vista Tract 99-04~ approved 2/29/00 (Tentative Map PCS- 99-04): SF2:.60 for lots 1-21, 3840, and 43-51 in Neighborhood I. SF3:.65 for lots 6-8, 11-15, and 3741 in Neighborhood H. SF4:.65 for lots 109-119 in Neighborhood E. *** In the SF4 District, the Maximum allowable building area shall be 3100 square feet in Neighborhood E and 3500 square feet in Neighborhood G . SP - Standards to be determined concurrently with Site Plan and Architectural approval. San Miguel Ranch SPA Plan Volume 2 - PC District Regulations NNp ~ Trimark Pacific, San Miguel LLC 14B June 5, 2001 COUNCIL AGENDA STATEMENT Item Meeting Date: 6/12/01 ITEM T1TLE: Resolution Appropriating funds, accepting bids and awarding contract for the "Median Modifications on Telegraph Canyon Road East of Medical Center Drive in the City o~;hula Vista, California (ST-980)" Project. SUBMITTED BY: Director of Public Works City Manager (}~o ~" (4/Sths Vote: Yes~X NoO REVIEWED BY: On May 2, 2001, the Director of Public Works received sealed bids for the "Median Modifications on Telegraph Canyon Road East of Medical Center Drive in the City of Chula Vista, California (ST-980)" Project. The work to be done, includes mobilization, excavation and grading, removal and disposal of existing improvements, installation of A.C. pavement, crushed aggregate base, curb and gutter, cold planing, saw cutting, 4" P.C.C. stamped and colored concrete median, street lighting, pavement striping and marking, traffic control, protection and restoration of existing improvements. The work also includes all labor, material, equipment and transportation necessary for the project. RECOMMENDATION: That Council appropriate an additional $35,000.00 from Trans DIF funds to the current project budget of $85,0000, making the total project budget $120,000, accept bids and award the contract for the "Median Modifications on Telegraph Canyon Road East of Medical Center Drive in the City of Chula Vista, California (ST-980)" to New Century Construction, Inc. of San Diego, California, in the amount of $69,300.00.00. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The project was advertised previously and bids were rejected due to an item that was not included in the traffic control section of the original specifications (restrictions on working hours). Because the cost of the reduced ;vork hours ',vas not included in the bids received, the specifications were modified and the project was re-advertised. This project provides for the modifications of the raised median needed to increase the left turn pocket opening by approximately 200 feet on westbound lanes of Telegraph Canyon Road to southbound lanes of Medical Center Drive. Increasing the left turn pocket opening will ease the potential traffic backup on ;vestbound lanes of Telegraph Canyon Road and decrease the water utility cost due to reduced irrigation and planting area in the median. The general scope of the project involves the excavation and grading, removal and disposal of existing improvements, installation of AC pavement, crushed aggregate base, curb & gutter, cold planing, saw cutting, 4"P.C.C. stamped and colored concrete median, 4"P.V.C. drain pipe, street lighting, pavement striping and marking. The work also includes all labor, materials, equipment, transportation, protection of existing improvements and traffic control necessary for the project and other work necessary to perform the new improvements complete and workable. Page 2, Item Meeting Date: 6/12/01 Engineering Staff prepared plans and specifications and re-advertised the project. Staff received and opened bids for the project on May 2, 2001. The City received bids from nine contractors as follows: CONTRACTOR BID AMOUNT 1. New Century Construction Inc., San Diego, California $69,300.00 2. Nickell Engineering, Chula Vista, California $73,550.00 3. MJC Construction, Chula Vista, California $78,200.00 4. Scheidel Contracting & Engineering, Inc., La Mesa, California $78,980.00 5. Nicholas Grant Corp., San Diego, California $86,690.00 6. Kirk Paving, Inc., La Mesa, California $87,124.25 7. Shiva Construction, Inc., San Diego, California $88,300.00 8. 3-D Enterprises, San Diego, California $94,850.00 9. Heffier Company, Inc., National City, California $98,381.19 The low bid by New Century Construction is below the Engineer's estimate of $75,725.00 by $6,425.00 or approximately 8%. Staff's bid estimate was based on average prices for similar type of work completed during the last three years. Engineering staff has verified the references provided by the contractor and their work has been satisfactory. The Contractor's License No. 614517 is current and active. Staff has reviewed the low bid and recommends awarding the contract for $69,300.00 to New Century Construction of San Diego, California. Disclosure Statement Attached is a copy of the contractor's Disclosure Statement. Environmental Status The Environmental Review Coordinator has reviewed the work involved in this project and has determined that the project is exempt under Section 15301, Class l (c) of the California Environmental Quality Act (Existing Facilities). Wage Statement Contractors bidding this project were not required to pay prevailing wages to persons employed by them for the work under this project. No special minority or women owned business requirements were necessary as part of the bid documents. Disadvantaged businesses were encouraged to bid through the sending of the Notice to Contractors to various trade publications. Page 3, Item Meeting Date: 6/12/01 Fiscal Impact FUNDS REQUIRED FOR CONSTRUCTION A. Contract Amount (New Century Construction) $69,300.00 B. Contingencies (approximately 15%) $10,700.00 C. Staff Costs (Design, Survey & Inspection) $40,000.00 TOTAL FUNDS REQUIRED FOR CONSTRUCTION $120,000.00 FUNDS AVAILABLE FOR CONSTRUCTION A. Current Project Budget (TransDIF) $85,000.00 B. Additional Appropriation from TransDIF Fund $35,000.00 TOTAL FUNDS AVAILABLE FOR CONSTRUCTION $120,000.00 Upon completion of the project, only routine maintenance will be required. Attachments: Contractor's Disclosure Statement Cm H:\HOME\ENGINEERING~AGENDA\ST980-A 1 [3-rev-l.doc THE CITY OF CHULA VISTA DISCLOSURE STATEMENT Pursuant to Council Policy 101-01, prior to any action upon matters which will require discretionary action by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions for a City of Chula Vista election must be filed. The following information must be disclosed: 1. List the names of all persons having a financial interest in the property that is the subject of the application or the ~ontract, e.g., owner, applicant, contractor, subcontractor, material supplier. 2. If any person* identified pursuant to (I) above is a corporation or partnership, list the names of all individuals with a $1000 investment in the business (corporation/parmership) entity. 3. If any person* identified pursuant to (1) abov9 is a non-profit organization or trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. H:~HOME~ENGINEERkADM INkCONTRAC'i~ST980 R. DOC 14 5. Has any person* associated with this contract had any financial dealings with an official** of the City of Chula Vista as it relates to this contract w thin the past 12 months9 Yes No/~' If Yes, briefly describe the nature of the financial interest the official** may have in this contract. 6. Have you made a contribution of more than $250 within the past twelve (12) months to a current member of the Chula Vista City Council? Yes No ~X~ If Yes, which Council member? 7. Have you or any member of your governing board (i.e. Corporate Board of Director~/Executives, non-profit Board of Directors made contxibutions totaling more than $1,000 over the past four (4) years to a current member of the Chula Vista City Council? Yes No i~ If Yes, which Council member? 8. Have you provided more than $300 (or an item of equivalent value) to an official** of the City of Chula Vista in the past twelve (12) months..9 (This includes being a source of income, money to retire a legal debt, gift, loan, etc.) Yes __ No ~ _ If Yes, which official** and what was the nature of item provided? Date: ~. ~t. fie/ ' ! ~ Signature of Contractor/Appl~ant Print or type name of Contractor/Al~plicant * Person is defined as: any individual, firm, co-parmership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. ** Official includes, but is not limited m: Mayor, Council member, Planning Commissioner, Member of a board, commission, or committee of the City, employee, or staffmembers. 15 H:~HOM E~NGrNEER~. DM IN~C ONTRACT~ST980R.DOC RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING APPROPRIATING FUNDS, ACCEPTING BIDS AIqD AWARDING CONTRACT FOR THE "MEDIAIq MODIFICATIONS ON TELEGRAPH CAI~YON ROAD EAST OF MEDICAL CENTER DRIVE IN THE CITY OF CHULA, CALIFORNIA (ST-980)" PROJECT. WHEREAS, on May 2, 2001, the Director of Public Works received sealed bids for the "Median Modifications on Telegraph Canyon Road East of Medical Center Drive in the City of Chula Vista, California (ST-980)" Project; and WHEREAS, the work to be done, includes mobilization, excavation and grading, removal and disposal of existing improvements, installation of A.C. pavement, crushed aggregate base, curb and gutter, cold planing, saw cutting, 4" P.C.C. stamped and colored concrete median, street lighting, pavement striping and marking, traffic control, protection and restoration of existing improvements; and WHEREAS, the work also includes all labor, material, equipment and transportation necessary for the project; and WHEREAS, Engineering Staff prepared plans and specifications and re-advertised the project; and WHEREAS, the City received bids from nine contractors as follows: CONTRACTOR BID A/4OLINT 1. New Centuw Construction Inc., San Diego, Cali~mia $69,300.00 2. Nickell Engineering, Chula Vista, Cali~mia $73,550.00 3. MJC Construction, Chula Vista, Cali~mia $78,200.00 4. Scheidel Contracting & Engineering, Inc., La Mesa, Call,mia $78,980.00 5. Nicholas Grant Co~., San Diego, Cali~mia $86,690.00 6. Kirk Paving, Inc., La Mesa, Call,mia $87,124.25 7. Shiva Construction, Inc., San Diego, Cali~mia $88,300.00 8. 3-D Ente~rises, San Diego, Cali~mia $94,850.00 9. Heftier Company, lnc., Nmional City, Cali~mia $98,381.19 WHEREAS, the low bid by New Century Construction is below the Engineer's estimate of $75,725.00 by $6,425.00 or approximately 8%; and WHEREAS, Staff's bid estimate was based on average prices for similar type of work completed during the last three years; and WHEREAS, Engineering staff has verified the references provided by the contractor and their work has been satisfactory. The Contractor's License No. 614517 is current and active; and WHEREAS, Staff has reviewed the low bid and recommends awarding the contract for $69,300.00 to New Century Construction of San Diego, California; and WHEREAS, the Environmental Review Coordinator has reviewed the work involved in this project and has determined that the project is exempt under Section 15301, Class 1 (c) of the California Environmental Quality Act (Existing Facilities); and WHEREAS, Contractors bidding this project were not required to pay prevailing wages to persons employed by them for the work under this project; and WHEREAS, no special minority or women owned business requirements were necessary as part of the bid documents; and WHEREAS, disadvantaged businesses were encouraged to bid through the sending of the Notice to Contractors to various trade publications. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept the nine bids and award the contract for the construction of the "Median Modifications on Telegraph Canyon Road East of Medical Center Drive in the City of Chula Vista, California (ST-980)" Project to the lowest bidder, New Century Construction, Inc. of San Diego, California, in the amount of $69,300.00. BE IT FURTHER RESOLVED that the City Council does hereby appropriate $35,000 from the Trans DIF funds to the current project budget of $85,000 making the total project budget $120,000. 2 Presented by Approved as to form by Director of Public Works t J:~Attorney\RES0~Median Modifications Telegraph Canyon Rd.doc COUNCIL AGENDA STATEMENT Item Meeting Date 6/12/01 ITEM TITLE: Resolution Approving a first amendment to the agreement with San Diego Expressway Limited Partnership to provide loaned executive services to assist in expediting the construction of the SR-125 toll road facility and authorizing the Mayor to execute the first amendment SUBMITTED BY: DirectorofPublic Works~ REVIEWED BY: City Manager 0,' (4/5ths Vote: Yes__ No X ) The need for the construction of SR-125 in order to continue the development in the eastern area of Chula Vista has been well documented in all of the City's traffic studies. However, the construction has become delayed due to the many state and federal processes. The City has Will Kempton of the firm of Smith & Kempton under contract for transportation advocacy services and, on September 22, 1998, the City and San Diego Expressway Limited Partnership (SDELP) acting through its General Partnership, California Transportation Ventures (CTV), entered into an agreement for the assistance of Mr. Kempton in breaking the state and federal "logjam". This item approves an extension to the agreement with SDELP to pay for services of Will Kempton under the City's contract with his firm. SDELP has requested that the term of the agreement be extended beyond the original termination date due to the ongoing need for the services. RECOMMENDATION: That the Council approve the resolution approving the first amendment extending the agreement with San Diego Expressway Limited Partnership to provide loaned executive services to assist in expediting the construction of the SR-125 toll road facility and authorize the Mayor to execute the amendment. BOARDS/COMMISSIONS RECOMMENDATION: None. DISCUSSION: The City has an agreement with the firm of Smith & Kempton to provide program management services in connection with our 1-805 interchange projects and transportation advocacy services in connection with state and federal funding opportunities and the City's negotiations with both SDELP and Caltrans on freeway and tollway agreements pursuant to Resolution 19185. Because of Mr. Kempton's background and expertise, SDELP m~d the City entered into an agreement to use that expertise under a loaned executive services program. A copy of the original agreement is attached hereto. The assistance may consist of several activities, the elements of which include: 1. Elevate the status of SR-125 with Caltrans, Federal Highway Authority (FHWA) and other regulatory agencies to a "Fast track" category. Page 2, Item Meeting Date: 6/12/01 2. Develop a project team approach of individuals within Caltrans and involving FHWA and the regulatory agencies to deliver the project. 3. Gather political support by uniting the officials who represent the SR125 corridor to work collectively to move the project along. 4. Intensify community relations by exploring opportunities for communication with the public and securing input from affected parties. Since Mr. Kempton is under contract with the City to assist us in negotiations with SDELP and Caltrans over freeway and toll road agreements it would have been a conflict of interest if Mr. Kempton were to work directly for SDELP. However, SDELP agreed to enter into an agreement with the City to pay for Mr. Kempton's services, under the City's direction, to assist them in getting the toll road built as soon as possible. The agreement provided for the City to bill SDELP for Mr. Kempton's services in connection with advocacy for the toll road. The agreement specified that it "shall continue in effect until September 22, 1999 or when the consultant's performance of the Scope of Services have been completed, whichever occurs first." The agreement also specified that the term of the agreement may be extended by further written agreement of the parties. By letter dated May 10, 2001, SDELP has requested that the agreement be extended and acknowledged that a longer period is necessary to complete the Scope of Services. The proposed extension to the agreement provides that the agreement: "shall continue in effect until June 30, 2002 or when the consultant's performance of the Scope of Services have been completed, whichever occurs last, but in no event shall the contract be extended beyond June 30, 2005, without approval by the City Council. The amendment is attached hereto. FISCAL IMPACT: The estimated cost of SR-125 advocacy services by Mr. Kempton is estimated at $170,000. Those costs are advanced by the Transportation Development Impact Fee fund and will be reimbursed by SDELP on a monthly billing basis. To date, SDELP has reimbursed the City $52,235.73. Attachments: Letter from SDELP dated May 10, 2001 Agreement dated September 22, 1998 Amendment to the agreement with San Diego Expressway Limited Partnership 6/6/01 10:34:10 AM H:\HOME~ENGINEER~AGENDA\CTV agTeement extension.doc May 10. 2001 John Lippitt ~.,,~,,.T,..... ....Director of Public Works City of Chula Vista 276 Fourth Ave. 707 Broadv, ray S~it~1600 Chula Vista, CA 91910-2631 92101 Re: Agreement for Loaned Executive Services (Smith, Kempton & Watts) 619-,.,~a84~ Our Agreement No. 98-449 FAX 619.338.8123 Dear John: I am writing this letter to request your acknowledgment of the extension of the Effective Date of the above-referenced agreement. Section 3.a. of the agreement states, in whole, the following (emphasis added): a. Effective Date. This Agreement shall become effective on the Effective date identified above and, unless earlier terminated pursuant to the terms of this Agreement, shall continue in effect until September 22, 1999 or when the consultant's performance of the Scope of Services have been completed, whichever occurs first. In the event the parties determine that a longerperiod is necessary to complete the Scope of Services or additional se~wices are required by the Consultant, the term of the Agreement may be extended by the further written agreement of the parties. As stated above, by means of this letter, we can extend this agreement simply by you signing below, acknowledging that the a longer period is necessary to complete the Scope of Services or additional services are required by Smith, Kempton & Watts. Accordingly, I am requesting your signature to extend this agreement to June 30, 2002. If you have any questions, please do not hesitate to contact me. Sincerely, San Diego Expressway Limited Partnership, By California Transportation Ventures, Inc., Its general panner Kent A. Olsen President Agreed: John Lippitt Director of Public Works City of Chula Vista AGREEMENT FOR LOANED EXECUTIVE SERVICES The City of Chula Vista, a municipal corporation, ("City") and San Diego Expressway Limited Partnership ("SDELP") acting by and through California Transportation Ventures, Inc, ("CTV"), its general partner, have entered into this Agreement, effective =5~/~/~ ~ , 1998 ("Agreement"). This Agreement is made and entered into with respect to the following recitals and in consideration of the following covenants and conditions: RECITALS Whereas, the City has retained the services of Smith and Kempton ("Consultant") to provide program management and advocacy services for the City with respect to the 1-805 Interchange Projects, the TransDIf Program and for SR-125, pursuant to the Third Amendment to The Agreement Between City of Chula Vista and Smith & Kempton For Transportation Consulting Services, and amended on September 22, 1998, by the Fourth Amendment to The Agreement Between City of Chula Vista and Smith & Kempton For Transportation Consulting Services (referred to collectively herein as "Consulting Agreement"); and Whereas, the Consultant has made a significant amount of progress towards completing the tasks identified above, which has provided the Consultant with a unique knowledge and understanding of the work needed to process entitlements and approvals necessary for the construction of SR-125; and Whereas, CTV, has entered into a Development Franchise Agreement for a privatized transportation project with the State of California Department of Transportation pursuant to which it is developing an approximately ten-mile toll road facility ("Toll Road") to be incorporated into the California highway system as part of State Route 125; and Whereas, CTV has assigned all of its rights, title and interest to SDELP in the Development Franchise Agreement, dated January 6, 1991, and has authorized SDELP to act on its behalf. Whereas, SDELP would like to have assistance in expeditiously processing entitlements and approvals necessary for the construction of the Toll Road from the Consultant because of its unique knowledge of SR-125 and previous experience with the Department of Transportation. NOW, THEREFORE, for the mutual consideration and in accordance with the mutual covenants hereinafter contained, SDELP and the City agree as follows: 1. STAFFING a. Scope of Services. SDELP represents and warrants that it will need the services of the Consultant in accordance with this Agreement. SDELP acknowledges that the City, based upon this representation, has entered into an agreement with the Consultant to provide additional services, beyond those originally required by City under the Third Amendment to The Agreement Between City of Chula Vista and Smith & Kempton For Transportation Consulting Services, said additional services are set forth in Exhibit "A" and are referred to herein as "Scope of Services." The costs, as shown on Exhibit "A," describes the maximum cost for Consultant,s performance of the Scope of Services, however, the Consultant may be required to provide further assistance as related to the Scope of Services, which may require an amendment to this Agreement. In such event, SDELP-and the City agree to negotiate in good faith to amend this Agreement to provide the Consultant with additional funds as necessary to complete any supplemental services desired by the parties. The parties to this Agreement further agree, that minor changes in the Scope of Services that do not require any additional funding may be approved on behalf of the City by the City Manager and SDELP. b. Retention and Assignment of Consultant. The City has retained the Consultant to perform the Scope of Services as set forth in Exhibit "A" to assist SDELP in the expeditious processing of entitlements and approvals necessary for the construction of the Toll Road. The City shall retain full rights to direct the work of the Consultant, however, SDELP may make work requests directly to Consultant pursuant to the Scope of Services. In addition, SDELP may manage and oversee Consultant's work subject to the City's supervisory rights. c. Consultant.s obligations. SDELP understands and agrees that Consultant,s principal obligation is to perform a range of management and advocacy services on behalf of the city pursuant to the Consulting Agreement, and that Consultant is performing the Scope of Services identified in Exhibit "A," for the benefit of the City and SDELP. SDELP further understands and agrees that the Consultant will be working solely on the City's behalf with respect to any Tollroad agreements negotiated between CTV or SDELP and the City, for which it will be compensated by the city. In addition, SDELP understands and agrees that if Consultant determines there is a conflict of interest between a task assigned by SDELP and Consultant's representation of the City, Consultant has the right to stop work on that task and continue its representation of the City, without being in breach of this Agreement or the Consultant's Agreement. 2. COSTS AND PAYMENT a. Payment for Consultant. SDELP shall be responsible for 2 the payment of Consultant's time and expenses incurred in the performance of the Scope of Services in the maximum amount and at the billing rates set forth in Exhibit "A." b. Billing. On or about the tenth (10th) day of each month, the Consultant will bill the City for performance of the Scope of Services incurred by the Consultant for the previous month in accordance with the requirements of the Consulting Agreement. Within ten (10) days of receipt of Consultant's bill the City shall provide SDELP with the billing statement, accompanied by the Consultant's time sheets and other appropriate documentation that shows the amount owed to Consultant. SDELP shall pay the City the amount shown on such billing statement within fifteen (15) days after City mails the billing statement to SDELP. For purposes of this paragraph, the term "mails" shall mean depositing into a United States Post Office mail box, postmarked to SDELP as described in Section 4(d) of this Agreement and if payment is made by United States mail, the date of the postmark shall be considered the date of payment. c. Penalties. In the event City does not receive the payment within the time limit described above, SDELP shall be liable for a penalty. If the payment is between sixteen (16) and 30 days late according to the above schedule, SDELP agrees to pay an additional flat amount of two percent (2%) of the overdue amount as a penalty. If the payment is between thirty-one (31) and sixty (60) days late, the penalty shall be a flat four percent (4%) of the overdue amount. Any payment overdue more than sixty (60) days shall be subject to a penalty of a flat ten percent (10%) of the overdue amount and this Agreement shall be subject, at the option of the City, to immediate termination upon written notice to SDELP, but without the additional thirty (30) day notice. SDELP understands and agrees that SDELP is obligated to pay any amounts owed by SDELP for the Consultant's services performed prior to such termination date. d. Disputes. In the event SDELP has a dispute with the City over the billing, SDELP shall notify the City in writing describing SDELP's objections to such monthly billing statement(s) and may request that the City withhold p~yment to the Consultant. Notwithstanding the foregoing, SDELP understands and agrees that the City is not obligated to withhold such payment to the Consultant even if so requested by SDELP. Notwithstanding SDELP's dispute with said billing statement, SDELP shall pay the entire amount owed on such billing statement. If the amount owed on said billing statement is determined by the City to be incorrect, SDELP may deduct the incorrect amount that was paid by SDELP from the next billing statement. 3. TERM OF AGREEMENT, TERMINATION RIGHTS AND DEFAULT a. Effective Date. This Agreement shall become effective on 3 the Effective date identified above and, unless earlier terminated pursuant to the terms of this Agreement, shall continue in effect until September 22, 1999 or when the Consultant,s performance of the Scope of Services have been completed, whichever occurs first. In the event the parties determine that a longer period is necessary to complete the Scope of Services or additional services are required by the Consultant, the term of the Agreement may be extended by the further written agreement of the parties. b. Right to Terminate. Notwithstanding the term of this Agreement as provided in Section 3(a), the City and SDELP shall have the right to terminate this Agreement for any reason upon thirty (30) days written notice to the other party. SDELP understands and agrees that SDELP is obligated to pay any amounts owed by SDELP for the Consultant's services performed prior to such termination date. 4. MISCELLANEOUS PROVISIONS a. Integrated Agreement. This Agreement constitutes the final agreement between the parties and supersedes all prior oral or written negotiations, discussions, communications, promises, covenants, understandings or representations between the City and SDELP regarding the subject of this Agreement. Notwithstanding the foregoing, the parties acknowledge that the provisions of any other mutual written agreements shall remain in full force and effect. b. Written Modifications and Amendments. This Agreement may not be modified or amended except by a writing duly executed by both parties to this Agreement. c. Construction and Interpretation of the Agreement. Both parties to this Agreement acknowledge that they have been represented by counsel in respect to the negotiation and drafting of this Agreement, and that no provision of this Agreement shall be construed or interpreted by reference to the extent to which either party participated in the drafting of this Agreement, or any part thereof. d. Notices. Ail notices, letters or any other documents required or delivered in accordance with, or with respect to this Agreement, other than the billing statements, shall be made or contemporaneously confirmed in writing and shall be personally delivered or deposited in the United States mail, addressed as follows: To the City of Chula Vista: Director of Public Works City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 4 copy to: Ann Moore Senior Assistant City Attorney City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 (619) 691-5037 To SDELP: SDELP C/O California Transportation Ventures, Inc. Kent A. Olsen, President 707 Broadway, Suite 1600 San Diego, CA 92101 If written notices under this Agreement, other than the billing statements, are delivered by depositing them in the United States mails, they shall be deemed to have been received by the other party on the fifth (5th) working day following the day on which they were mailed. Either party may change the address to which notice is to be given under this Agreement by delivery of a written notice to the other party specifying the new notice address and referencing this Section. e. No Waiver of Any Default. No waiver of any default by any party to this Agreement shall be implied from any omission by any other party to take any action in respect of such default. No such waiver shall be effective unless expressly evidenced by a writing duly executed by the party waiving the default. No waiver of any default shall be deemed to be a waiver of any other or subsequent default. f. Attorneys' Fees. In any action or proceeding arising under this Agreement, or to enforce the provisions of this Agreement, each of the parties shall bear its own attorneys' fees and costs. g. Interpretation and ~overning Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. h. No Third Party Beneficiaries. The only parties to this Agreement are the City and SDELP. There are no third party beneficiaries, and this Agreement is not intended, and shall not be construed, to benefit or be enforceable by any other person whatsoever. SDELP shall be deemed a third party beneficiary of the Consultant's Agreement to the extent it relates to the Scope of Services, provided however, SDELP agrees not to take any actions that would interfere with Consultant's performance on behalf of the 5 City under the Consultant,s Agreement that are not related to the Scope of services. i. Independent Contractor Performance. SDELP understands and agrees that Consultant is acting as an independent contractor and is not an employee of the City, SDELP further agrees that the City shall not be deemed to be in default or responsible for the Consultant,s performance of the Scope of Services under this Agreement or the Consultant's Agreement. j. Hold Harmless. SDELP and on behalf of CTV and all agents and assignees of said entities, agree to hold harmless the City, its elected and appointed officers and employees, from and against any claims, suits, actions or proceedings, judicial or administrative, for writs, orders, injunction or other relief, damages, liability, cost and expense (including without limitation attorneys' fees) by or against SDELP, CTV, and all of its agents or assigns, arising out of the provisions of the Consultant's Agreement, this Agreement, the Consultant's performance of the Scope of Services, and in exercising any discretion related thereto. k. Agreement Executed In Counterparts. So that each of the parties may have an executed original of this Agreement, this Agreement may be executed in counterparts, all of which shall constitute a single Agreement. 1. Agreement Binding Upon Successors. This Agreement shall be binding upon and inure to the benefit .of the successors, assigns and interests of the parties as to any or all of the parties of this Agreement until released by the mutual consent of the parties. m. Exhibits. Ail recitals to this Agreement and the exhibits attached hereto and referred to herein are incorporated as a part of this Agreement. n. Authorization. SDELP and the city represent that the signatories of this Agreement are authorized to execute this Agreement on behalf of their respective entities. o. No Obligation to Approve. SDELP understands and agrees that any future decisions of the City Council relating to the subject matter of this agreement are discretionary actions, and that the City may not enter into an agreement to obligate the City Council to exercise its discretion in a particular manner or for a particular result. This Agreement does not, therefore, in any way create a contractual, legal or equitable obligation or commitment by the City or the City Council to take any actions concerning SR- 125 or the Toll Road. [NEXT PAGE IS SIGNATURE PAGE] 6 [SIGNATURE PAGE TO AGREEMENT BETWEEN CITY OF CHULA VISTA A_ND SAN DIEGO EXPRESSWAY LIMITED PARTNERSHIP REPRESENTED BY CALIFORNIA TRANSPORTATION VENTURES FOR LOANED EXECUTIVE SERVICES] IN WITNESS WHEREOF, City and SDELP have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: = , 19~/in the City of Chula Vista By: ~Horton, Mayor Beverly Authelet, City Clerk Approved as to form: John Kaheny, City Attorney Dated: ~.~ ~, 19 ~ in the city of San Diego San Diego Expressway Limited Partnership, By: California Transportation Ventures, Inc., Its general partner By: ~resident --- H: ~home\ATTORNEY~KEMPTON2 .AGT 7 EXHIBIT A TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND SAN DIEGO EXPRESSWAY LIMITED PARTNERSHIP REPRESENTED BY CALIFORNIA TRANSPORTATION VENTURES 1. Scope of Services: The City's Consultant will assist SDELP in an extensive coordination process: working in parallel with representatives of the City of Chula Vista, SANDAG, the State of California and the Federal Government to bring the eR-125 toll road project to construction as soon as possible. Said assistance may include several activities, the elements of which are included on Exhibit "1", and incorporated herein by this reference. 2. Cost Estimate: The cost estimate for Consultant services is estimated at a maximum of $170,000.00. This number is based on an estimated involvement of approximately sixteen (16) hours per week for a maximum period of 52 weeks at the hourly rate shown below for the Principal of $200.00, plus $5,000.00 for travel expenses. All work on this task will be billed on a time and material basis, and may be more, or less, than the estimated hours per week but shall in no event exceed $170,000.00. END OF EXHIBIT A H: ~Home ~ATTORNEY~ KEMPTON2. AGT 8 EXHIBIT 1 SR-125 POLITICAL/PROJECT MANAGEMENT SCOPE OF SERVICES Lead role in completinq the entitlement process to build SR~12~ Conduct overall assessment of current status of environmental entitlement process and establish expected schedule for deliverables listed below In consultation with existing capabilities at CTV's availability (Parsons Brinckerhoff, Transroute, Koch, JLC Consultants, Connect South Bay, Mark Watts, Dave Nielsen, Rob Thornton, developers, and environmental consultants) establish coordinated strategy for timely completion of entiUement process and assign ownership for responsibilities Lead overall coordination process between representatives of the City of Chula Vista, SANDAG, the State of California, and Federal Government to bring SR-125 to construction as soon as possible Coordinate and attend meetings with resources agencies, as a representative of the City and CTV, to facilitate the process Elevate the status of SR~125 with Caltrans, FHWA, and other resource agencies to a "Fast Track" category) Troubleshoot, recognize and react immediately to bureaucratic hurdles which may develop in the entitlement process Be a resource to the CTV for suggestions to overcome problems which may develop in their assigned area of responsibilities Provide bi-weekly reviews to the CTV team on entitlement process status Assist in Obtainino Entitlement Process Deliverables: Biological Opinion from U.S. Fish and Wildlife Service (USFW) and California Department of Fish and Game (CDFG) with a non jeopardy finding Concurrence on the "Least Environmentally Damaging Practicable Alternative" (LEDPA) and 404 Permit from U.S. Corps of Engineers (COE) and Environmental Protection Agency (EPA) Approval of "Historic Property Survey Report" (HPSR) and "Finding of Effect" (FOE) from State Historic Preservation Offices (SHPO) Agreement on biological and park mitigation from SANDAG Completion of FEIR/S by Caltrans Approval for preliminary engineering funds for the "Gap" Approval of FEIR/S by FHWA Approval of CTV as sole source design-build contractor for the "Connector" and "Gap" Other Maior Responsibilities: Assist Connect South Bay in the effort to improve community relations by developing communication strategies with the public and securing input from affected parties Assist Connect South Bay in the creation of media stories on issues that apply indirect pressure to key decision makers As needed, assist CTV by serving as a mediator in deal and contract negotiation processes H /SHAF~ED\ENGINEERISD091798 DOC RESOLUTION NO. 19185 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN AGREEMENT WITH SAN DIEGO EXPRESSWAY LIMITED PARTNERSHIP TO PROVIDE LOANED EXECUTIVE SERVICES TO ASSIST IN EXPEDITING THE CONSTRUCTION OF THE SR-125 TOLL ROAD FACILITY WHEREAS, the City Council through its Resolution No. 17946 on June 27, 1995, unanimously supported efforts of California Transportation Ventures Inc. to construct SR -125 between SR-805 and SR-54; and WHEREAS, the City Council unanimously approved Resolution No. 18880 on January 20, 1998, adopting SR-125 South as one of its seven enhancement priorities; and WHEREAS, the need for the construction of SR-125 in order to continue the development in the eastern area of Chula Vista has been well documented in all of the City's traffic studies; and WHEREAS, however, the construction has become delayed due to the many state and federal processes; and WHEREAS, the City has retained Mr. Will Kempton of the firm of Smith & Kempton for transportation advocacy services; and WHEREAS, the City and San Diego Expressway Limited Partnership (SDELP) have discussed and agreed upon the need for assistance of Mr. Kempton in breaking the state and federal "logjam"; and WHEREAS, it is necessary to approve an agreement with SDELP to pay for services of Mr. Kempton under the City's contract with his firm. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve an agreement, a copy of which is kept on file in the office of the City Clerk, known as Document Number CO98-147, with San Diego Expressway Limited Partnership to provide loaned executive services to assist in expediting the construction of the SR-125 toll road facility. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized and directed to execute said Agreement for and on behalf of the City. Presented by Approved as to form by John ~.~hn M. Kaheny ~ Public ~Norks Director YCity Attorney ~ Resolution 19185 Page 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 22~" day of September, 1998, by the following vote: AYES: Councilmembers: Moot, Rindone, Salas and Herren NAYS: Councilmembers: None ABSENT: Councilmembers: Padilla ABSTAIN: Councilmembers: None Shirley Ho~"~ Mayor ATTEST: Beverly A. ~[uthelet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 19185 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 22"d day of September, 1998. Executed this 22n" day of September, 1998. Beverly AJAuthelot, City Clerk '~ RESOLUTION NO: RESOLUTION OF THE CITY COUIqCIL OF THE CITY OF CHULA VISTA APPROVING A FIRST AMENDMENT TO THE AGREEMENT WITH SAN DIEGO EXPRESSWAY LIMITED PARTNERSHIP TO PROVIDE LOANED EXECUTIVE SERVICES TO ASSIST IN EXPEDITING THE CONSTRUCTION OF THE SR-125 TOLL ROAD FACILITY AND AUTHORIZING THE MAYOR TO EXECUTE THE FIRST AMENDMENT WHEREAS, the need for the construction of SR-125 in order to continue the development in the eastern area of Chula Vista has been well documented in all of the City's traffic studies; and WHEREAS, the construction has become delayed due to the many state and federal processes; and WHEREAS, the City has Will Kempton of the firm of Smith, Kempton & Watts (formerly Smith & Kempton) under contract for transportation advocacy services; and WHEREAS, on September 22, 1998, pursuant to Resolution 19185 the City and San Diego Expressway Limited Partnership (SDELP) entered into an agreement for the assistance of Mr. Kempton in moving the project forward; and WHEREAS, this item approves an extension to the agreement with SDELP to pay for services of Will Kempton under the City's contract with his firm; and WHEREAS, SDELP has requested that the term of the agreement be extended beyond the original termination date due to the ongoing need for the services. NOW, THEREFORE, BE IT RESOLVED that the City Council hereby approves a First Amendment to the Agreement extending the length of time with San Diego Expressway Limited Partnership to provide loaned executive services to assist in expediting the construction of the SR-125 toll road facility. BE IT FURTHER RESOLVED that the Mayor is authorized and directed to sign and execute the First Amendment to the Agreement on behalf of the City of Chula Vista. Presented by Approved as to form by John P. Lippitt John ~MqVKaheny~ Director of Public Works City Attorney [J:\Attorney\RESO\San Diego Expressway Extension Agreement.doc FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF CHULA VISTA AND SAN DIEGO EXPRESSWAY LIMITED PARTNERSHIP WHEREAS, the City of Chula Vista, by Resolution 19185 on March 31, 1998, approved an Agreement to provide professional services in connection with the SR-125 toll road facility (~Original Agreement"); and WHEREAS, there is a need for additional consultant services in order to ensure the timely construction of SR-125; and WHEREAS, the City requires further consultant efforts in order to advance the SR-125 Project; and WHEREAS, the City and San Diego Expressway Limited Partnership require an extension of time for the firm of Smith, Kempton & Watts (formerly Smith & Kempton) to continue to provide program management and related services; and WHEREAS, extending the date of contract completion for the consultant who has extensive experience and familiarity with SR-125 will result in enhanced continuity and move the process efficiently forward to resolution. NOW THEREFORE, the parties agree as follows: Section 1. Paragraph 3.a to the Original Agreement is hereby amended to read as follows: 3.a. Effective Date. This Agreement shall become effective on the Effective date identified above and, unless earlier terminated pursuant to the terms of this Agreement, shall continue in effect until June 30, 2002, or when the Consultant's performance of the Scope of Services has, as determined by the City Manager, been completed, whichever occurs last but in no event shall the contract be extended beyond June 30, 2005. Notwithstanding the foregoing, in the event the parties determine that a longer period is necessary to complete the Scope of Services or additional services are required by the Consultant, the term of the Agreement may be extended by the further written agreement of the parties. Section 2. Ail other terms and conditions of the Original Agreement, not expressly or indirectly amended by the terms of this Amendment, shall remain in full force and effect and shall otherwise govern the terms of this Amendment. Dated: , 2001 City of Chula Vista By: Shirley Horton, Mayor Attest: Susan Bigelow, City Clerk Approved as to form: Dated: 2001 John M. Kaheny, City Attorney Dated: , 2001 SAN DIEGO EXPRESSWAY LIMITED PARTNERSHIP By California Transportation Ventures, Inc. Its general partner Kent A. Olsen President J:\Attorney\RESO\San Diego Exprewway. First Amendment to Agree.doc CITY COUNCIL AGENDA STATEMENT ITEM NO.: MEETING DATE: 06/12/01 ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING RESOLUTION 2001-099 APPROVING CLOSURE OF THIRD AVENUE FROM 'E' TO "G" STREETS FOR THE CHULA VISTA THIRD AVENUE LEMON FESTIVAL ON AUGUST 19, 2001, TO AUTHORIZE THE CLOSURE FROM 4 A.M. - 9 P.M., SUBJECT TO CONDITIONS SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR b~ REVIEWED BY: CITY MANAGER ~'/~ ~ 4/5TNS VOTE* YES ~ NO [~ BACKGROUND annually approved resolution authorizing the closure of Third Avenue from 'E" to 'G' streets so that the Chula Vista Downtown Business Association (DBA) could hold its annual Lemon Festival on August 19, 2001. The measure was adopted along with three other street closure resolutions, all designed to accommodate special downtown events of the DBA. Although the resolution did not specify the exact time for the street closure, the staff report stated those hours would be from 6 a.m. - 8 p.m. For the recent Cinco De Mayo Festival, a DBA event, held on May 6, 2001, the hours stated in the staff report for the street closures (6 a.m. - 8 p.m.) was used as it has been in recent years. However, with the increasing success of the event more vendors and entertainers participated and it proved difficult for the DBA, city staff, volunteers and vendors to prepare for or take down the event in the amount of time allo~ed. The Lemon Festival, traditionally, has been a larger event than the Cinco De Mayo Festival. The DBA reported to staff that 2001 Lemon Festival vendor sales have already surpassed the 2000 event and it requested staff to amend the time of the street closure to allow ample time for event set up. Staff checked with the City of San Diego to compare street closure times regarding neighborhood events and learned that for large "main street" types of events, the streets are often closed at midnight or soon thereafter because of the amount of preparation involved. It seemed reasonable to accommodate the DBA's request of a 4 a.m. street closure and to allow an additional hour of clean up time at the end of the event, as well. PAGE 2, ITEM NO.: MEETING DATE: 06/12/01 RECOMMENDATION It is recommended that the City Council adopt the resolution, amending Resolution 2001-099 to allow the closure of Third Avenue from 'E" to "G' streets from 4 a.m. - 9 p.m. for the Third Avenue Lemon Festival on August 19,2001. BOARDS/COMMISSIONS RECOMMENDATION Not applicable. DISCUSSION The Lemon Festival and similar public events of the DBA are intended to draw visitors and residents to downtown Chula Vista to showcase the retail shops, services and restaurants there. The events provide a venue for enhancing community cohesiveness, celebrating the historic culture of the community, and offer a positive leisure activity for area families and youth. The additional three hours of the street closure being requested will have a minimal impact on traffic circulation because the hours requested - from 4 - 6 a.m. on Sunday morning and 8 - 9 p.m. on Sunday evening - are not primary traffic hours in downtown Chula Vista. The City's transit system will be affected and the general modifications required for the Lemon Festival will be extended through the longer closure period. The Transit Coordinator has agreed to the closure provided 'E' and 'G' streets remain passable for traffic. The Department of Community Development will reimburse the Police Department for additional labor costs associated with the longer street closure. Additional conditions are placed on the DBA when it hosts the Lemon Festival. A copy of these conditions is aHached to this report. FISCAL IMPACT Not applicable. ATTACHMENTS 1 - Resolution 2001-099 2 - Conditions for the Lemon Festival J:\COMMDEV~STAFF.£EP\06-05-01 \Lemon Festival.doc ',, RESOLUTION NO. 2001-099 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CLOSURE OF THIRD AVENUE FROM "E" TO "G" STREETS FOR THE CHULA VISTA THIRD AVENUE LEMON FESTWAL ON AUGUST 19, 2001, WAIVING PROHIBITION ON SDEWALK SALES, AND WAIVING BUSINESS LICENSE TAXES FOR DOWNTOWN BUSINESS ASSOCIATION AND ~,qSNDORS PARTICH?ATING 1N THE EVENT WHEREAS, the City Council of the City of Chula Vista established a Business Improvement Area on November 16, 1971, which created the Chula Vista Downtown Business Association ("DBA"); and WHEREAS, the DBA has requested to close Third Avenue from "E" to "G" Streets including adjacent side streets to the alleyway in order to conduct the 2001 Chula Vista Third Avenue Lemon Festival on August 19, 2001; and WHEREAS, the DBA has requested a waiver of the City's prohibition on sidewalk sales so that the DBA can conduct the 2001 Chula Vista Th/rd Avenue Lemon Festival; and WHEREAS, the DBA has also requested a waiver of the Business License Tax for promotional events for the DBA and vendors participating in the 2001 Chula Vista Third Avenue Lemon Festival; and NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the closure of Third Avenue from "E" to "G" Streets on August 19, 2001, for the purpose of the DBA conducting the 2001 Chula Vista Third Avenue Lemon Festival subject to conditions listed in Attachment B, attached hereto and incorporated herein by reference. BE IT FURTHER RESOLVED that the CiD' Council of the City of Chula Vista approves the requested waiver of the City's prohibition on sidewalk sales so that the DBA can conduct the 2001 Chula Vista Third Avenue Lemon Festival. BE IT FURTHER P,.ESOLVED that the City Council of the City of Chula Vista approves the requested waiver of the City's Business License Tax for the DBA and all vendors participating in the 2001 Chula Vista Third Avenue Lemon Festival on August 19, 2001. Presented by Approved as to form by Chris Salomone - Jo/biffS. Kaheny ~ Community Development Director C~5r Attorney Resolution 2001-099 Page 2 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this l0th day of April, 2001, by the following vote: AYES: Councilmembers: Davis, Rindone and. Horton NAYS: Coancilmembers: None ABSENT: Councilmembers: Padilla and Salas Shirley Hortc~i, Mayor ATTEST: Susan Bigelow, City Cl~k STATE OF CALIFOR_\2A ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Resolution No. 2001-099 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 10th day of April, 2001. Executed this l0th day of April, 2001. Susan Bigelow, City Clerk :: :.~' A'I-FACHMENT B ~i ::-;: ~':~ ~ CONDITIONS OF APPROVAL 17 FOR CHULA VISTA THIRD AVENUE LEMON FESTIVAL 1. The DBA shall provide for adequate traffic and crowd control, as determined by the City's Traffic Engineer and Folice Department; 2. The DBA shall Frovide adequate litter control during and after the event, including Pr°fessi°nal street sweeping; 3. The DBA shall notify all property owners and tenants (including businesses and residents) that will be affected by the street closure. The notification must be sent by first class mail at least seven days pdor to the event kate; 4. The DBA will be responsible for measures to insure that the noise generated bY the event's activities does not reach an excessive level; the DBA will;undertake the following measures in order to implement this condition: 1) DBA shall continually monitor noise levels of performing bands, stereos, and other sound- emitting devices and will make adjustments as needed; 2) A plan showing the location of the performing stages will be submitted for Community Development staff review and approval prior to the event; 3) All band performances shall be limited to the hours of 10 a.m. and 6 p.m.; 5. In order to meet the requirement of the Fire Marshall, the alleyways between "E" Street and "G" Street' east and west of Third Avenue, shall remain open and unobstructed for the purpose of fire apparatus access in the event of an emergency. The Fire Marshall has required that all food-cooking vendors have a ZA10BC-type fire extinguisher readily available in their booths; 6. In order to meet the requirements of the Fire Marshall and the Transit Division, "E" and "G" Streets must remain open to traffic; 7. The Downtown Business Association must provide, 10 days Pd°r t° the Festival' evidence °f general liability insurance in the amount of $1 million, in the form of a certificate of insurance and policy endorsement satisfactory to the City, naming the City of Chula Vista and the Chula Vista Redevelopment Agency as additional insured; and 8. The Downtown Business Association must execute an agreement t° h°ld the City harmless fr°m any liability stemming from Festival activities in the street. 9. The Downtown Business Association must execute an agreement to hold the City harmless from any liability stemming from Festival activities in the street. 10. The location of the food and beverage tent shall be approved by the Police and Fire Department at least 30 days prior to the event. COUNCIL RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING RESOLUTION NO. 2001-099 APPROVING CLOSURE OF THIRD AVENUE FROM "E" TQ "G" STREETS FOR THE CHULA VISTA THIRD AVENUE LEMON FESTIVAL ON AUGUST 19, 2001, TO AUTHORIZE THE CLOSURE FROM 4 A.M. - 9 P.M., SUBJECT TO CONDITIONS WHEREAS, on April 10, 2001 the City Council of the City of Chula Vista adopted Resolution No. 2001-099 authorizing a street closure for the Chula Vista Downtown Business Association (DBA) to host the Third Avenue Lemon Festival on August 19, 2001; and WHEREAS, the increasing success of the DBA events such as Cinco De Mayo and the Lemon,Festival have resulted in more participating vendors and a need for increased preparation time to stage these events; and WHEREAS, the DBA has requested the ability to set up its event prior to the 6 a.m. street closure authorized in Resolution 2001-099; NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby amend Resolution 2001-099 to state: "the City Council of the City of Chula Vista hereby authorizes the closure of Third Avenue from "E" to "G" Streets between the hours of 4 a.m. - 9 p.m. on August 19, 2001, for the purpose of the DBA conducting the 2001 Chula Vista Third Avenue Lemon Festival subject to conditions listed in Attachment B, attached hereto and incorporated herein by reference." Presented by Approved as to form Chris Salomone Johq'M. K~ahe. ny Director of Community Development City ~ttorney ' COUNCIL AGENDA STATEMENT Item No Meeting Date 06/12/01 ITEM TITLE: Resolution Accepting unanticipated grant revenues in the amount of $25,000 from the State of California for the collection of traffic stop demographic data in the City of Chula Vista, as part of a state-wide study of racial profiling. Submitted by: Chief of Police.~/'' by: City Manager(~!~,,?,~' (4/Sths Vote: Yes X No__.) Reviewed The State of California and the California Highway Patrol have received grant funds to distribute to California local law enforcement agencies to offset the costs created by the collection of traffic stop demographic data. This is part of a state- wide effort to better understand the practice known as "racial profiling" and to assist in the development of deterrents where necessary. The grant provides $25,000 annually for a two-year period ending 2003. Recommendation: That the City Council accept $25,000 from the State of California for the first year of collection of traffic stop demographic data in the City of Chula Vista and budget the subsequent year accordingly. Boards/Commissions: None Discussion: The California Highway Patrol has invited local law enforcement agencies to participate in a state-wide study of traffic stop data with the goal of better understanding the incidence of racial profiling. Participating agencies will receive an annual grant for up to two years to collect data required by the CHP's analysis plan. This data is already being collected in the internal process initiated by the Chula Vista Police Department on May 1, 2001. The State funds will help offset some of the costs of data collection, including reporting the data in the way needed by the State's study. Participation in the study will enable the City to proactively collect data on an issue of importance for our community. It will also aid the City in conducting a self-assessment with regard to the issue of racial profiling. Fiscal Impact: The grant provides for two year funding. A total of $25,000 is anticipated to be received annually. The $25,000 will be used to cover the cost of data collection, reporting and related activity. RESOLUTION NO. RESOLUTION OF THE CHULA VISTA CITY COUNCIL ACCEPTING UNANTICIPATED GRANT REVENUES IN THE AMOUNT OF $25,000 FROM THE STATE OF CALIFORNIA FOR THE COLLECTION OF TRAFFIC STOP DEMOGRAPHIC DATA IN THE CITY OF CHULA VISTA, AS PART OF A STATE-WIDE STUDY OF RACIAL PROFILING. WHEREAS, The California Highway Patrol has received grant funds to distribute monies to those participating California local law enforcement agencies to offset the costs created by traffic stop demographic data collection; and WHEREAS, Chula Vista is located within the geographic area where data collection is to occur. NOW, THEREFORE, BE IT RESOLVED that the Chula Vista City Council does hereby accept unanticipated grant revenues in the amount of $25,000 from the State of California for the collection of traffic stop demographic data in the City of Chula Vista, as part of a state-wide study of racial profiling. Presented by: Approved as to form by: Richard P. Emerson John M. Kahe~y Police Chief City Attorney COUNCIL AGENDA STATEMENT Item: ~ Meeting Date: 06/12/01 ITEM TITLE: Public Hearing: Tentative Subdivision Map PCS-01-04, to develop nine lots for single-family homes, at the western extension of E1 Loro Street - Applicant: Dan Irwin. Resolution: of the Chula Vista City Council granting approval and imposing conditions for the Vista Del Loro tentative subdivision map, a 2.03- acre nine-lot subdivision for single-family dwellings units located at the westerly terminus of E1 Loro Street, Chula Vista Tract No. SUBMITTED BY: Director of Planning and Building/~ REVIEWED BY: City Manager . ~v (4/Sths Vote: Yes No X) Staff recommends that the public hearing be opened and continued to the June 19,2001 City Council meeting. CITY COUNCIL AGENDA STATEMENT ITEM NO.: MEETING DATE: 06/12/01 ITEM TITLE: PUBLIC HEARING TO CONSIDER AMENDING THE CURRENT FISCAL YEAR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) ANNUAL PLAN TO INCLUDE THE NYPRO SAN DIEGO PROJECT RESOLUTION (1) AMENDING THE CURRENT FISCAL YEAR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) ANNUAL PLAN TO INCLUDE THE NYPRO SAN DIEGO PROJECT TO PURCHASE ENERGY-EFFICIENT EQUIPMENT USING A SECTION 108 LOAN; AND (2) AUTHORIZING STAFF TO SUBMIT A SECTION 108 LOAN GUARANTEE PROGRAM APPLICATION TO THE U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR k~--~ ~ REVIEWED BY: CITY MANAGER ,~ ~ 4/, TNS VOTE: YES No BACKGROUND NYPP~O San Diego, located at 505 Main Street in Chula Vista and a division of Nypro Inc., a global manufacturer of custom injection molded products, has approached the City seeking financial assistance to replace existing inefficient machinery by purchasing new energy-efficient injection-molding machines. The new equipment purchase will allow NYPRO to realize significant energy cost savings, thereby allowing NYPRO to retain 120 jobs by maintaining its facility in Chula Vista and to expand its operations, creating 30 new jobs. Staff recommends that the City submit an application for a Section108 Loan to the U.S. Department of Housing and Urban Development (HUD} for approximately $1.8 million. HUD approval of this loan application would allow the City to enter into a future lending agreement with NYPRO for the purchase of the new equipment. Without this funding, Nypro Inc. will likely close the Chula Vista facility and complete its contract work at other facilities in Oregon or Denver. In order to submit a Section 108 Loan Guarantee Program Application to HUD, an amendment to the current fiscal year Community Development Block Grant (CDBG) Annual Plan to include the Nypro project is required, along with a 30-day public comment period. HUD approval of the City's application will not obligate the City to draw down the Section 108 funds nor to loan the funds to NYPRO. No such action will be taken until the City executes a loan agreement with HUD and a re-lending agreement with NYPI~O. Both agreements will require Council approval prior to execution. PAGE 2, ITEM NO.: MEETING DATE: 06/12/01 RECOMMENDATION Staff recommends that the City Council conduct the public hearing and approve the Kesolution (1) Amending the current fiscal year Community Development Block Grant Program (CDBG} Annual Plan to include the NYPRO San Diego project to purchase energy-efficient equipment using a Section 108 loan; and (2) Authorizing staff to submit a Section 108 Loan Guarantee Program application to the U.S. Department of Housing and Urban Development, including all standard HUD certifications as contained in the resolution. BOARDS/COMMISSIONS RECOMMENDATION Not applicable. NYPP, O San Diego, located at 505 Main Street in Chula Vista, is a division of Nypro Inc., a global manufacturer of custom injection molded products servicing the healthcare, electronics/telecommunications, and consumer industrial and automotive markets. Nypro Inc. has 22 divisions worldwide including the Chula Vista location, which is the only division in California. Nypro Inc. is a 50-year-old employee owned (ESOP) company with a customer list of market leaders including Dell, Nokia, and Novartis. NYPRO San Diego (NYPRO), the Chula Vista division, has been in business since 1988 and employs approximately 120 people locally with an additional 1,000 employees at a maquiladora operation in Tijuana, Mexico. NYPP~O employees range from electronics engineers to mold makers and technicians. Based on the highest government certification for quality management and "lean" manufacturing, NYPRO is ISO 9002 certified, U.L. listed and Gross Manufacturing Product (GMP)-compliant in addition to employing state-of-the-art technology including robotics and prototyping processes. NYPRO has approached the City of Chula Vista seeking financial assistance to replace twelve existing inefficient hydraulic injection-molding machines with twelve new energy-efficient electric injection-molding machines. The new equipment purchase is part of an expansion plan that would enable NYPRO to complete two new large contracts with current health care customers. The new machines, supplied by Ferromatik Milacron, are estimated to help NYPKO save 50-90% in energy costs with an additional 60-70% savings due to a reduced demand for air conditioning. Additionally, the new equipment will provide NYPRO with a power factor improvement and reduced water usage for machine cooling. Staff is recommending that the City submit an application for a Section108 Loan to the U.S. Department of Housing and Urban Development (HUD) for approximately $1.8 million. If approved, the City would be able to use the loan proceeds to enter into a loan agreement with NYPRO for below-market financing for their purchase of the energy-efficient equipment. With the completion of a new clean room and installation of the new equipment, NYPRO would be able to reduce energy costs, stay and expand in Chula Vista, meet its growing contract obligations, retain 120 employees, and hire 30 new employees. Without funding assistance to purchase the new equipment, Nypro Inc. will likely close the Chula Vista facility and complete its contract work at other facilities in Oregon or Denver. These other divisions of Nypro Inc. are currently operating PAGE 3, ITEM NO.: MEETING DATE: 06/12/01 under capacity and could assume the outstanding customer contracts from NYPRO San Diego if operating and energy costs cannot be lowered through the proposed equipment purchase. The company's long-range plans include expanding to a larger existing building or constructing a new building in Chula Vista. This future expansion would include a 150,O00-square-foot high- tech, state-of-the-art facility consisting of three class 100,000 clean rooms, two molding rooms, complete-in-house tool design and construction, and one automated assembly clean room to accommodate NYPRO's health care customers. The expansion would more than double the company's employee base in all areas. The City has completed its environmental review on the proposed project and determined that the project activity is categorically exempt under 24 CFR Part 58, Section 58.35(b)(4). In order to submit a Section 108 Loan Guarantee Program application to HUD requesting assistance for NYPRO, an amendment to the current fiscal year CDBG Annual Plan is required, along with a 30-day public comment period. The public comment period began on May 11, 2001, and will end on June 11, 2001. To-date there have been no public comments regarding amending the Plan. There are two key factors driving the timing of NYPRO's request for financing assistance to purchase new equipment: (1) the company's ability to meet customer-driven timelines that rely on the purchase and installation of new equipment necessary for NYPRO to start work for two large contracts by fall 2001 and (2) an immediate need for NYPRO to reduce overall costs at its Chula Vista facility by lowering operating and energy costs to make this division competitive. NYPRO's decision to keep the Chula Vista facility open and to plan for future expansion here is contingent upon securing financing assistance and energy rebates in the short-term to meet these timeframes. FISCAL IMPACT Council previously approved $20,000 in CDBG funds to hire a consultant to assist staff in establishing a Section 108 Business Loan Program. These funds cover the cost of consultant fees for the preparation of loan application documents and the contract between the City and HUD, as well as technical assistance regarding the Section 108 Loan application process provided by Mark Briggs & Associates, Inc. It should be noted that the Section 108 Loan Guarantee Program is structured such that the City's annual CDBG funding allocation serves as the underlying source of repayment to HUD in the event that NYPRO defaults on the loan and no other sources of repayment are available. This is the basis for the below-market interest rate for the loan funds. However, the agreement between the City and NYPRO will be structured such that NYPRO will provide all necessary collateral, including a first lien on the new equipment to be purchased as well as a corporate guarantee from NYPRO's parent company Nypro Inc., to reduce the City's risk to an acceptable level. The terms and conditions of the loan will be specified in the agreement between the City and NYPRO, which will be presented for Council review and approval at an upcoming meeting. PAGE 4, ITEM NO.: MEETING DATE: 06/12/01 ATTACHMENTS Aftachment 1: Proposed Terms of Agreement for Section 108 Loan to Nypro San Diego Aflachment 2: Draft Section 108 Loan Guarantee Program Application to HUD J:\COMMDEV~STAFF.REP~06-12-01\NYPRO SECTION 108 AGENDA STATEMENT.DOC ATTACHMENT 1 PROPOSED TERMS OF AGREEMENT WITH NYPRO SAN DIEGO FOR SECTION 108 LOAN COMMITMENTS FROM CITY OF CHULA VISTA A. Enable NYPRO San Diego to Incur Reimbursable Expenditures on Equipment 1. City staff will include the proposed NYPRO San Diego Section 108 loan in the City's Annual CDBG Plan (and 5 year CDBG Comprehensive Plan) and recommend approval by Council at a public hearing (May 8, 2001 and June 12, 2001). 2. City staff will complete an environmental rewew of the proposed loan per federal NEPA and state CEQA regulations. 3. City will request a waiver from HUD of regulations capping the amount of funds eligible for reimbursement (i.e. regulations limit reimbursements to 25% of the City's annual CDBG entitlement of $2 million, or $400,000), allowing NYPRO San Diego to be eligible for 100% reimbursement of all eligible costs, subject to meeting all other pertinent requirements of the HUD and of the City. 4. Concurrent with seeking Council approval on June 12, 2001 of an amended CDBG Consolidated Plan to include the NYPRO project, City staff will seek Council approval of a Section 108 Loan application to HUD along with these Proposed Terms of Agreement. Following submission of the Section 108 application to HUD, and upon receipt of their approval, the City will notify NYPRO of its ability to begin incurring expenditures eligible for reimbursement from Section 108 Loan proceeds. It is the City's understanding from our Section 108 consultants that the HUD application review and public noticing period is approximately 90 days from the City's submission - allowing NYPRO to begin to incur costs in approximately 90 days. It is also the City's understanding that HUD will wire transfer interim loan funds to the City within 30 days of the approval. B. Pursue Section 108 Loan on behalf of NYPRO San Diego 1. Subject to NYPRO providing loan collateral acceptable to the City and other legal and financial provisions as may be required by the City, the City will apply to HUD for a Section 108 Loan in an amount up to $1.8 million - not to exceed the actual amount of eligible expenses - with such loan collateralized by the City's CDBG entitlement funds in order to achieve a below market interest rate and other favorable terms as per HUD Section 108 program regulations. 2. Upon approval by HUD of the City's loan application on behalf of NYPRO, the City will re-lend the Section 108 loan directly to NYPRO in an amount up to $1.8 million - not to exceed the actual amount of eligible expenses - payable over a maximum term of 10 years, and at a rate not to exceed the rate that applies to the City's loan agreement with HUD. The City's understanding of the Section 108 loan rate determination is as follows: The fixed rate is determined at the time of the public offering by HUD which is anticipated to occur in June 2002. This rate is based upon comparable term US Treasuries plus approximately 15-20 basis points. (It is our understanding that as of May 10, this would equal 5.16%.) Prior to the June 2002 issuance, interim loan funds will be made available by HUD at a variable rate equivalent to the 3 Month London Interbank Overnight Rate (LIBOR) rate plus 20 basis points. (It is our understanding that as of May 10, this would equal 5.02%.) 3. HUD guidelines require that new equipment and machinery be financed at an 80% loan to value ratio. Therefore, if the equipment NYPRO wishes to purchase costs $1.6 million dollars, these guidelines would limit the loan to 91.280 million. It is the City's understanding that if NYPRO were to provide a parent company guarantee, we could successfully pursue approval of the full costs. The City agrees to pursue this request with HUD. C. Provide general business development assistance to NYPRO San Diego 1. The City will continue to provide assistance to NYPRO at their existing location, including, but not limited to the following areas: a. Facilitate resolution of Board of Equalization issue b. Facilitate access to state energy-related incentives c. Facilitate job recruitment, screening, and placement assistance 2. The City will assist NYPRO as relates to their future expanded facility, including but not limited to the following areas: a. Site selection b. RED TEAM project designation: Executive level problem-solving and permit fast-tracking c. Consideration of potential financial assistance related to building/equipment acquisition, including but not limited to Redevelopment tax increment, Enterprise Zone, Recycling Market Development Zone, personal property tax abatement industrial bond financing, and/or City fees, as appropriate d. Employment services, including but not limited to job recruitment, screening, hiring and training D. Action in the event of a default 1. In the event of a default on payments by NYPRO, the City agrees to exercise its first right to the equipment prior to acting on the parent company corporate guarantee. The corporate guarantee would be exercised only to satisfy the outstanding loan balance minus the actual receipts from the sale of the equipment. COMMITMENTS FROM NYPRO SAN DIEGO A. Prerequisites to the City preparing a Section 108 Loan application and submitting same for approval to City Council (June 12) and subsequently to HUD 1. A Letter of Intent from NYPRO San Diego and from the parent company to meet the following application requirements: a. Provide a project description and use of the funds b. Indicate how the company plans to meet the HUD Section 105 national objectives, i.e. a minimum of 1 job must be created or retained per $35,000 of Section 108 loan funds received, and of these, 50% must comply with the Iow to moderate income criteria. c. Indicate the collateral to be provided. The City will require a first lien on the equipment UCC filing and a parent company corporate guarantee for the loan repayment with the company's full faith and credit d. Indicate the loan term (10 years) 2. NYPRO will provide the City with the following financial information: a. Amount of sales, use, and property (broken down by personal and real estate property) taxes generated by existing operation, and amounts projected to be generated by the future expansion facility b. A list of equipment to be purchased with the loan proceeds, along with evidence of NYPRO's purchase price of each c. A copy of NYPRO's existing lease on its existing facility. (The City understands that the existing lease expires in June, 2003.) d. Current year and past 3 years financial statements for NYPRO San Diego and for its parent company providing the loan guarantee. e. A written guarantee that the equipment purchased with Section 108 loan proceeds will have a minimum life of 12 years. 3. NYPRO will provide the City with assurances regarding its commitment to continue its operations in the City of Chula Vista on a long-term basis. a. Letter of Intent to upgrade NYPRO's existing Main Street facility using the loan proceeds (see section "B" below) b. Letter of Intent to locate NYPRO's expansion facility within the City Of Chula Vista (see section "C" below) B. Financial prerequisites to the City negotiating and executing a Section 108 Loan agreement with NYPRO San Diego 1. NYPRO will execute an agreement with the City of Chula Vista covering the terms and conditions of the loan and all pertinent HUD requirements. The City will execute a Contract for Loan Guarantee Assistance with HUD under Section 108 of the Housing & Community Development Act of 1974, as amended, 42 U.S.C. S5308. 2. NYPRO will provide an appraisal provided by a certified FFE (furniture, fixture and equipment) Appraiser - such appraiser to be approved in advance by the City - of the market value of each piece of equipment to be purchased with the loan proceeds at time of purchase and annually, over the period of the 10 year loan. 3. NYPRO will provide the City with a first lien on a UCC filing on the equipment purchased with the proceeds of the Section 105 loan, and a parent company corporate guarantee for the amount of the loan. 4. NYPRO agrees to match the City's quarterly repayment schedule to HUD, with loan repayments made to the City 1 month in advance of the City's payment due date. 5. NYPRO agrees to structure the payments to the City in such a manner as to ensure that the outstanding loan balance is never greater than the pre- appraised market value of the equipment. 6. NYPRO will execute an agreement with the City covering the terms and conditions of the loan and other performance-related City requirements. C. Performance prerequisites to the City negotiating and executing a Section 108 Loan agreement with NYPRO San Diego 1. Guarantees related to Short Term operation at the existing Chula Vista facility a. NYPRO will continue to operate at the company's current location on Main Street in Chula Vista for at least the remainder of the company's existing lease. This requirement may be voided in the event that NYPRO determines to relocate to a new site within the City Of Chula Vista prior to the lease expiration date. NYPRO will continue to employee at least 85 in-house and 35 temporary employees, or a full- time equivalent at the existing facility. b. NYPRO will expand its existing clean room at the current Chula Vista site in order to accommodate the identified client contracts, and will employ at least 36 new employees within 3 months of the expansion. c. NYPRO will use the proceeds of the Section 108 loan made by the City Of Chula Vista for the sole purpose of upgrading existing equipment to meet the new client's requirements - in an amount not to exceed $70,000; and for replacing 12 existing molding machines with new energy efficient equipment in the total amount of $1,615,000. The equipment will meet two goals shared by the City and the company: 1) reduced energy consumption and energy costs; and 2) the ability to meet the requirements of the 2 new client contracts. 2. Guarantees related to Longer Term Operation at a future facility in Chula Vista a. NYPRO agrees to locate an expanded operation within the City Of Chula Vista prior to or immediately upon the termination of the company's existing lease. The new facility will be built from the ground up and will be a state of the art, high-tech and world class mold and assembly facility of approximately 150,000 square feet. The facility will include 3 class 1OO,OOO clean rooms, 2 molding rooms, complete in-house tool design and building and one automated assembly clean room to accommodate NYPRO's health care customers. b. NYPRO agrees to employ approximately 120 additional employees at the new facility in Chula Vista. c. NYPRO will operate the new 150,OOO facility within Chula Vista for a minimum of 10 years. d. NYPRO will enter into an Employment Agreement acceptable to the City which requires the company to coordinate with the City and the South County Career Center in its job search and training efforts, encouraging NYPRO to hire locally and to take advantage of SCCC customized, Iow-cost training opportunities, and ensuring NYPRO's awareness of all available employment related services. J:\COMMDEV\DYE\NYPRO San Diego Terms of Agreement 5 24,doc ATTACHMENT 2 DRAFT CITY OF CHILA VISTA SECTION 108 LOAN APPLICATION 1. Loan Request The City of Chula Vista is requesting $1.8 million in Section 108 Loan Guarantee funds to assist with the acquisition o£ new equipment by a manufacturing company located in the City. The new equipment will not only allow the manufacturer to keep their facilities open and retain 120 jobs in Chula Vista, while also providing for future expansion and new employment opportunities. The Section 108 Loan Guarantee request is well within the maximum loan amount of five (5) times the City's Community Development Block Grant (CDBG) entitlement of $2.1 million for the 2000-2001 fiscal year. The City has an existing $1 million Section 108 Loan approved for use as an economic development revolving loan fund. To date, none of the funds under this program have been drawn down. Under the program guidelines, no loan can exceed $ 1 million. Due to the loan amount exceeding $1 million, this program could not be used for the current project, thereby necessitating this Section 108 Loan application request. 2. Project History and Description Over the last 25 years, the City of Chula Vista and it's Redevelopment Agency have developed a series of technical and financial assistance programs to not only retain, but also attract new manufacturing and industrial employers to the city. Programs include City Redevelopment Agency assistance to targeted areas and citywide economic development programs. The City's Redevelopment Agency has the ability to assist new development and expansion activities through land write downs, infrastructure improvements, tenant improvements, demolition, construction, designing and planning and equipment acquisition. The Agency may also assist with land assembly activities through eminent domain proceedings. To date, the Agency has assisted more than 20 projects through tax increment and other incentive programs. The City has created the Section 108 below-market interest rate loan program to assist businesses located anywhere within the City. As noted previously, the maximum loan under this program is $1 million. Additional assistance programs administered by the City include personal property tax rebates for up to five years, low interest loans for qualified businesses under the State Recycling Market Development Zone Loan Program, and State Enterprise Zone benefits. The City also helps companies access other state and local resources including a series of programs to assist with employment and workforce development needs ranging from specialized training to tax credits for hiring certain qualified individuals, SBA loans and State Manufacturers Investment Tax Credit, Research and Development Tax Credit and Child Care Tax Credit Programs. NYPRO San Diego, a division of Nypro Inc., is a global manufacturer of custom injection- molded plastic products serving the healthcare, electronics/telecommunications, and consumer industrial and automotive markets. Nypro Inc. has 22 divisions worldwide including the Chula Vista facility (located at 505 Main Street), which is the only division in California. Nypro Inc. is a 50-year-old employee owned (ESOP) company with a customer list of market leaders including Dell, Nokia and Novartis. The Chula Vista Division has been in business since 1988, and employs approximately 120 people locally, with an additional 1,000 employees at its Maquiladora operation in Tijuana, Mexico. Nypro employees range from electronics engineers, mold makers and technicians to office staff. The company is ISO 9002 certified, U.L. listed and GMP compliant in addition to employing state-of-the-art technology including robotics and prototyping processes. In keeping with the City's desire to attract and maintain businesses in the community, the City of Chula Vista is responding to a request from NYPRO San Diego. NYPRO San Diego has requested financial assistance from the City to replace 12 old inefficient hydraulic injection- molding machines with 12 new electric injection-molding machines as part of an expansion plan that would enable them to increase business while reducing overhead costs. These new machines are estimated to help NYPRO save 50-60% in energy costs with an additional 60- 70% savings in air conditioning costs. The new equipment is more powerful, but uses less energy and water to operate. In addition to the new equipment financing, Nypro is requesting an additional $70,000 in Section 108 funds to upgrade some of its other existing equipment. The cost estimates for the hydraulic injection molding machines and other equipment to be acquired are as follows: Tonnage Cost per Machine Quantity Total Costs 330 $206,890 2 $413,780 110 $111,478 4 $445,912 165 $133,578 2 $267,156 165 $145,690 3 $437,070 55 $88,315 1 $88,315 Upgrade other existing equipment $70,000 Estimated Total $1,722,233 The Section 108 request of $1.8 million is based on the possibility that the cost of the equipment could increase prior to acquisition. The City will only draw down the amount of Section 108 funds needed to cover the actual acquisition and installation costs of the equipment, up to $1.8 million. If the equipment purchase occurs prior to the period of peak energy consumption this summer, NYPRO could be eligible for significant incentives based on the energy savings generated by the new equipment. The new machinery could qualify for energy incentives from San Diego Gas and Electric (SDG&E). The City is aware that the Section 108 Loan approval may not be approved prior to the desired deadlines for the energy incentives, and has therefore requested a waiver from HUD regarding the limitations on reimbursement for pre-award costs under Section 24 CFR 570.200. A copy of the waiver request letter is included as Attachment A. The City and NYPRO are aware that they are "at risk" for any funds spent prior to the approval of the Section 108 application request. In addition to the benefits of job retention and job creation by assisting NYPRO to continue operating in Chula Vista, there are also financial benefits that will accrue to the City and the region. The total of the net new personal property, utility and use taxes to be generated by the project and received by the City, are estimated to be $120,000 annually. In addition, the annual payroll for the retained and new jobs generated at Nypro will total over $4.7 million. It is anticipated that the majority of employee eamings will be spent in the City. 3. National Objective The proposed project satisfies the primary national objectives stipulated in the Community Development Block Grant (CDBG) entitlement regulations. The project meets the CDBG program national objective outlined in 24 CFR 570.208 (a)(4)(i), Activities benefiting low- and moderate-income persons, specifically through job creation or retention activities. The proposed equipment purchase will allow NYPRO to maintain its Chula Vista plant, retaining the existing 120 jobs, while also generating an additional 30 new jobs. The project will also create additional jobs during the course of construction. Attachment B is a letter from Nypro indicating that without the acquisition of the new equipment, they will be forced to close their Chula Vista plant. The company conducted a survey of the existing employees to ensure that at least 51% qualify as low/moderate income. To insure that low and moderate-income residents located within the project area have access to the new jobs to be generated by the project, the City and Nypro will work closely with the local one-stop workforce center, South County Career Center, to meet NYPRO's employment needs. The South County Career Center, San Diego Workforce Partnership and the City of Chula Vista will institute a program to provide outreach to the community for employee recruitment and placement. In addition to meeting the above-referenced national objective criteria, the project will also meet the eligible activity criteria outlined in 24 CFR 570.703 (a)(1), Special Economic Development Activities by retaining or creating jobs for low and moderate-income persons. Pursuant to 24 CFR 570.209 (b)(4)(1), Guidelines for evaluating and selecting economic development prc~jects, the proposed project meets the mandatory standard for evaluating economic development projects by creating or retaining one full-time job for every $35,000 of Section 108 funds used. In fact, the proposed project far exceeds mandatory standards, resulting in one full-time job retained or generated for every $12,000 of Section 108 funds. 4. Term, Repayment and Security of Loan The term of the repayment of the Section 108 Loan is 10 years. The City will loan the Section 108 funds to NYPRO, who will be responsible for the repayment of the loan. Attachment C is a projected repayment schedule for the Section 108 funds. The additional security for the loan will be a first lien on the new equipment to be acquired with the loan funds as well as a corporate guarantee from NYPRO's parent company, Nypro Inc. While the HUD underwriting criteria allows funding of up to 80% of the value of the new equipment, the City is also requiring a corporate guarantee to provide additional security, thereby allowing the Section 108 Loan amount to cover the full costs of the equipment purchase and installation. The City and NYPRO have negotiated a Terms of Agreement that sets forth the responsibilities of both parties, including the loan repayment and additional loan security to be provided. Prior to requesting a draw down of funds, there will be an approved Agreement between NYPRO and the City relating to the loan repayment and other guarantees required by the City. Some additional City requirements in the Agreement with NYPRO include: 1) a guarantee that NYPRO will maintain its operations in the City of Chula Vista for the next 10 years; 2) that NYPRO work with the South County Career Center in meeting its employment needs; 3) that NYPRO will provide information to the City on new hires; and 4) that NYPRO will expand their existing clean room facility. In addition to requesting the Section 108 Loan funds, the City will assist Nypro by facilitating access to state and local energy rebates and related incentives, facilitate job recruitment and placement, fast-track City permit processing, and provide additional assistance relating to future expansion or development in the City of Chula Vista. The City is aware that the fixed interest rate for the Section 108 loan funds will be established at the time HUD conducts a public offering that includes the City's Section 108 allocation. The City will establish a separate bank account into which loan repayments will be deposited. From this account, the required payments will be made to HUD twice a year at the stipulated dates. 5. Certifications and Citizen Participation The City Council conducted a public hearing on June 12, 2001 regarding the Section 108 application. At the same meeting, the City Council also conducted a public hearing to amend the City's One-Year Action Plan for the CDBG Program to include the NYPRO project. At the June 12th public hearing, the City Council authorized submittal of the Section 108 application and adopted the resolution included as Attachment D. Attachment E contains a copy of the proof of publication (affidavit) of the public hearing notice for the amendment to the Action Plan and submittal of the Section 108 application. 6. Environmental Clearance The City has completed its environmental review on the proposed project and determined that the project activity is categorically exempt under 24 CFR Part 58, Section 58.35(b)(4). If you have any questions concerning this proposed Section 108 Loan Guarantee request, please contact Ms. Cheryl Dye, Economic Development Manager, City of Chula Vista, at (619) 691- 5047. chulavista/108app I Cl'h' OF CHUI.A VIS[A OFFICE OF THE Gl-FY MANAGER May 10, 2001 Mr. WiLliam Barth, Director U.S. Department o( Housing and Urban Development 611 West Sixth Street, Suite 800 Los Angeles, California 90017 RE: City of Chula Vista Section 108 Loan - Waiver Request Dear Mr. Barth: The City of Chula Vista is planning to assist NYPRO San Diego, an ~mportant high-tech manufacturer located in our community, to secure financing critical to the company maintaining and expanding its operations in Chula Vista. A key component of the city's assistance to NYPRO is a Section 108 Loan for $1.8 million. NYPRO will use the funding to purchase new state-of-fhe-art injection molding equipment that is very energy efficient thereby reducir~g the company's energy usage and expenditures. This equipment must be installed prior to peak energy demand season to qualify for state energy rebates. Without the new equipment, NYPRO will be unable to complete two new customer conu'acts, .which will Lead to a ma~or loss in busir~ess for the company and the eventual dosing of its Chula Vista operations including the loss of 150 jobs. '[herefore, we respectfully request that HUD provide the City with a waiver allowing us to use Section 108 Loan funds to fully reimburse NYPRO for pre-award costs associated with the purchase of this equipment. We have nearly completed the preparation of a Section 108 Loan application for submittal to your office. The equipment purchase is categorically exempt as an economic development project under the National Environmental Policy Act (NEPA) procedures. An amendment to the current vear Action Plan of our CDBG Consolidated Plan and authorization to submit the S~ction 108 application are scheduled for public hearing on June 12,' 2001. The new equipment qualifies for San Diego Gas and Electric (SDG&E) and State of California rebates due to the significant energy savings it will provide. These rebates are critical to retaining NYPRO in the City of Chula Vista and the State of California. Unfortunately, there are deadlines for the purchase and installation of the equipment prior to peak energy demand season to qualify for these rebates. Even if the Section 108 Loan application is submitted in the next few weeks, it is unlikely that approval of the loan and receipt of the funds will occur prior to the necessary deadlines. The equipment vendor is willing to advance the funds to NYPRO to ensure that the equipment can be purchased within the rebate deadlines. The equipment purchase would not occur prior to June 12th when the current year Action Plan will be amended. Under the provisions of 24 CFR 570.200(h) there are limitations on reimbursement for pre-award costs. We will meet the requirements of (1)(i) by having the project in our annual Action Plan, (ii) 276 FOURTH AVENU~/CHULA VISTA, CALIFORNIA 91910/(619) 691-5031 HUD Waiver Request - NYPRO Page 2 by informing the public of the actions at the scheduled public hearings, (iii) by completing the NEPA process and the Request for Funds process, (iv) by funding eligible activities - the purchase of equipment resulting in the retention of 150 jobs and the creation of 36 new jobs, (v) by using the Section 108 funds within the timeframes, but no._~t (vi) which limits pre-award costs to be paid during any program year to no more than the greater of 25% of our annual CDBG allocation or $300,000. The City's annual CDBG allocation is approximately $2 million and the Section 108 Loan application will be for approximately $1.8 million, more than 25% Of our annual a]location. The City of Chula Vista respectfully requests that HUD provide the City with a waiver of the 25% limit found in 570.200(h)(1)(vi). We know that HUD has granted such waivers for other projects when the circumstances warranted such action. In this case it is crucial to have the new energy- saving equipment installed before the mid-summer peak energy demand season. The SDG&E and State rebates are part of the economic incentive package that has convinced NYPRO to remain and expand their operations in Chula Vista. With President Bush's Executive Order that the Federal Government cut back on energy use in California, we believe that a waiver to allow reimbursement so the energy-efficient equipment can be purchased and installed prior to, not after, the high demand period is duly justified. Your expeditious action on this waiver request would be greatly appreciated. Sincerely, David D. Rowlands, Jr. City Manager cc: Chris Salomone, Community Development Director Cheryl Dye, Economic Development Manager Judith Atwood, CDBG Program Manager Jean Prohoroff, Community Planning and Development Representative, · U.S. Department of Housing and Urban Development Ray Richardson, Section 108 Program Representative, U.S. Department of Housing and Urban Development J:\COMMDEV~NYPRO2000~BARTH HUD LET[ER.DOC CITy OF CNULA VISTA Nypro Americas Nypro San Diego Inc. 505 Otay Valley Road Chula Vista, California 91911 Telephone 619 482 7033 Fax 619 482 7037 5/15/01 The Honorable Shirley Horton Mayor - City of Chula Vista 276 Fourth Avenue Chula Vista, CA 9].910 RE: Nypro San Diego Dear Mayor Horton: Nypro San Diego [NYPRO], an international plastic mold injection manufacturing company in Chula Vista with approximately 120 employees, is writing to request your support for federal and state funding (i.e. rebates, grants, loans). The funds for which we will be applying will enable NYPRO to replace existing hydraulic equipment with new electric mold injection equipment in our manufacturing process. This would reduce energy consumption from 6.38 kW to 0.59 kW per machine, and result in an overall energy savings of up to 90%. The skyrocketing cost of energy in Califomia has caused the NYPRO corporate office to doubt the wisdom of retaining a facility in this state. By working with your staff, NYPRO began to implement a plan to reduce energy costs while increasing their production -~ a necessary step to enable the firm to complete two large healthcare contracts. The plan, however, cannot be implemented without equipment upgrades costing approximately $1,600,000 and expansion of the firm's clean room facilities for a cost of approximately $150,000. ]~t is only through the acquisition of energy rebates, grants, or Iow interest loans that the local NYPRO facility will be able to justify the costs associated with the purchase of 12 new machines to their corporate office. Success in obtaining rebates, grants or Iow-interest loans will not only allow NYPRO to remain in California, but will give us the capacity to take on larger customer contracts and increase production goals and profit-margin. In the short term, NYPRO will hire 30 new employees to complete the two new contracts. Our long-range plans, should we achieve production goals and reduce energy costs, will be to build a new facility in Chula Vista. This new facility would double our current workforce and enhance the significance of the Chula Vista facility in the over-all NYPRO corporate structure. Your support of our funding requests would be of tremendous assistance as we move forward in the application process. (~ely, ~ Richard Even, General Manager A I B I C I D E t F 1 CITY OF CHULA VISTAI ' 2 SECTION 108 REPAYMENT i 3 chulavistal08repayl I 4 May 17,2001 5 I I 6 Drawdown Assumptions 7 August 1,2002 $ 1,800,000 8 Fees Historic costs for fees 9 Underwriter $ 10,800 55 to 60 basis points) 10 Legal & Accounting $ 540 ($300 per $1M of notes) 11 Trustee Fees $ 6,000 1($250 to $300 per years in term of repayment) 12 Wire Transfer Fees $ 50 1($50 per draw down event) 13 Total Fees $ 17,390 [ 14 Total $ 1'817'3901 16 Repayment Assumptions I 17 Average Interest Projected at 6.5% I 18 Principal amortization over 20 years I I 6.50% 19 Interim Interest based on May 17, 2001 3-Month LIBOR plus 20 basis points 4.24% 20 Assumed Public Offering Date for Funding I I August 1,2002 22 Section 108 Repayment I 23 I 24 August I August ! February Fiscal Year 25 Principal I Interest Interest Total Ending 26 Fiscal Year I Payment Payment Payment Payments Balance 27 28 2001-02 Payment of Fees) I $ 17,390 29 2001-02 I $ 58,500 $ 75,890 $ 1,800,000 30 2002-03 $ 140,000 $ 48,330 I $ 53,950 $ 242,280 $ 1,660,000 31 2003-04 $ 140,000 $ 53,950 I $ 49,400 $ 243,350 $ 1,520,000 32 2004-05 $ 150,000 $ 49,400 $ 44,525 $ 243,925 $ 1,370,000 33 2005-06 $ 160,000 $ 44,525 , $ 39,325 $ 243,850 $ 1,210,000 34 2006-07 $ 170,000 $ 39,325 I $ 33,800 $ 243,125 $ 1,040,000 35 2007-08 ___ $ 182,000 $ 33,800 I $ 27,885 $ 243,685 $ 858,000 36 2008-09 $ 194,000 $ 27,885 I $ 21,580 $ 243,465 $ 664,000 37 2009-10 $ 207,000 $ 21,580 $ 14,853 $ 243,433 $ 457,000 38 2010-11 $ 221,000 $ 14,853 $ 7,670 $ 243,523 $ 236,000 39 2011-12 $ 236,000 $ 7,670 $ $ 243,670 $ '";; ~ota~ $ 1,800,000$ 341,318 S 368,678 S 2,510,195 / "' PROOF OF PUBLICATION 'PRINCIPLE CLERK (2015.5 C.C.P) This space is for the County Clerk's filing stamp STATE OF CALIFORNIA, County of San Diego: I am a citizen of the United States and a resident of the county aforesaid; I am Proof of Publication of over the age of eighteen years, and not a pady to or interested in the above- cv15456 NYPRO entitled matter. I am the principal clerk of the printer of THE STAR NEWS, a newspaper of general circulation, published ONCE WEEKLY in the city Public Notice of Chula Vista and the South Bay Judicial District, county of San Diego, which newspaper has been adjudged a newspaper of general circulation by the PUBUC HOmE Superior Court of the County of San 'NOTICE IS HEREBY GIVEN Diego, State of California, under the date that th, city counc~ of the. C~ of Chu[~ Vista will con- of April 23, 1951, Case Number duct a Public Hearing 182529; that the notice, of which the regarding the following actioss rolabng to a pm- annexed is a printed copy (set in type pns~ Section 108 Loan not smaller than nonpareil), has been 6uz, r~tasApp[ication. Tne City intends to apply to the published in each regular and entire issue u.s. Department of of said newspaper and not in any Housing and Urban Oevelopmant (HUD) for a supplement thereof on the following s~ction 108 Loan fcr dates, to-wit: ~opmxircately $1.8 million to assist flYPRO San Diego, a Chula Vista manu- facturer, in funding the 5/11 Chambem located in the pumhase of new energy- Chu]a~AstaPublicSe~cas efficient equipment. The Building, 276 Foudb-Ave- , new equipment will allow ,nue. Chuta Vista. California. NYPR0 to retain 150 jobs ail in the year 2001 As part of the Citizen bymaintainingitsfacilityin Participation Pbn, the City Chul~ Vista and to expand encourages public cern- its operatioos creating 36 I certify (or declare) under penalty of ment and citizen viewed or, . new jobs. The project the proposed actions, requires as amendment to perjury that the foregoing is true and Comments rn~y be submit- the City's current Annual corrsc't, ted orally or in wdting for a Action Pbn for the 30-day period at the fol- lowing location: Community Development Dated_at Chula Vista, California 91910 city of Chub Vista Block 6rant (CD86) Pro- Com[]]gnitv 13RvRInnment gr3m asd a Section 108 Department --~ Loa.q ;~pplication submitted to HUD. The following 276 Fourth Avenue by the City Council: th 1 1 y Chula V~sta, CA 91910 Phone (619) 691-5047 .Amend the CUrt'em 2000  Annual Action Plan to the A copy of the current C~sCommunityDevelo~- Annual Plan for the CDBG merit Block Grant (CDSG) Si Program and the Section Program to include the 108 Loan Program guide- NYPRO project; and lines are available for pub- ,Authorize the submittal lic review upon request at of a. Section 108 Loan the · Community, Guarantee AppiicofJon for Development Department, ~ a~Pmximately $1.8 million Housing Division, 430 to the U.S. Oepartmeof of Devidscn Street, Suite B. A Housing a~d Urban Devel- draft copy of the Se~on opment to assist NYPRO 108 Loan application will · San Diego Diego with the be available for review at the · community purchase of new energy- Development Department, efficient equipment. · 263 Fig Avenue, after May The puTpoco of the public he~dng is to provide citi- 28, 2001. ff you have any zens as oppodunity to questions, pleose contact Shelly Bailey at (619) 691- comment off the proposed a~ons. The public h~dng 5047. CV15456 5/11/01 iS scheduled for Tuesday, - June 12. 2001, at 6:00 p.m., in the C~ Council COUNCIL RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE CURRENT FISCAL YEAR COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) ANNUAL PLAN TO INCLUDE THE NYPRO SAN DIEGO PROJECT TO PURCHASE ENERGY-EFFICIENT EQUIPMENT USING A SECTION 108 LOAN AND (2) AUTHORIZING STAFF TO SUBMIT A SECTION 108 LOAN GUARANTEE PROGRAM APPLICATION TO THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the City of Chula Vista has determined that a high priority exists for economic development and job creation and retention activities and that the proposed Section 108 loan to NYPRO to assist with the acquisition of equipment, to enable them to maintain their business and workforce in Chula Vista, is an activity that meets these priorities; and WHEREAS, any programmatic or funding changes to the city's Community Development Block Grant (CDBG) Program Annual Plan require an amendment to the Plan along with a 30-day public comment period for staff to receive public input with regard to the Plan; and WHEREAS, the 30-day public comment period began on May 11, 2001 and ended on June 11, 2001; and WHEREAS, the Section 108 Loan Guarantee program, implemented by the United States Department of Housing and Urban Development (HUD); is designed to provide funds to assist with these types of projects; and WHEREAS, under the Section 108 Loan Guarantee program, the City can borrow up to five years worth of its annual Community Development Block Grant allocation, and can take up to twenty years to repay the principal and interest; and WHEREAS, the City is requesting approximately $1.8 million in Section 108 Loan Guarantee funds to assist with the equipment acquisition by NYPRO; and WHEREAS, the City Manager is authorized to submit the Section 108 Loan Guarantee application and amendments thereto and all understandings and assurances contained therein, and to act in connection with the application to provide such additional information as may be required. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve (1) amending the current fiscal year Community Development Block Grant (CDBG) Program Annual Plan to include the Nypro San Diego project and (2) authorizing staff to submit a Section 108 Loan Guarantee Program Application to the United States Department of Housing and Urban Development and additionally resolves as follows: SECTION 1. The City hereby certifies and assures with respect to its application for a loan guarantee pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended, that it poses the legal authority to make the pledge of grants required under 24 CFR 570.705 (b) (2). SECTION 2. As prerequisites for submission of the application to HUD, the City certifies that it has: (a) Furnished citizens with information required by Section 570.704(a) (2)(i) of Title 1 of the Housing and Community Development Act of 1974, as amended; (b) Held at least one public hearing, on June 12, 2001, to obtain the views of citizens on community development and housing needs; and (c) Prepared its application in accordance with Section 570.704(a)(1)(iv) of Title 1 of The Housing and Community Development Act of 1974, as amended, and made the application available to the public. SECTION 3. The City has and will continue to follow a detailed citizen participation plan that meets the requirements described in Section 570.704(a)(2) of Title I of the Housing and Community Development Act of 1974, as amended. SECTION 4. The City has and will continue to affirmatively further fair housing, and the guaranteed loan funds will be administered in compliance with: (a) Title VI of the Civil Rights Act of 1964 (Public Law 88-352, 42 U.S.C. 2000d et seq.); and (b) The Fair Housing Act (42 U.S.C. 3601-20). SECTION 5. Will expend in the aggregate, at least 70 percent of all CDBG funds, as defined in Section 570.303(e) of Title 1 of The Housing and Community Development Act of 1974, as amended, during the one, two, or three consecutive years specified by the City for its CDBG program on activities which benefit Iow/moderate income persons, as described in criteria in Section 570.208(a) of the Act. SECTION 6. The City has and will continue to comply with the requirements governing displacement, relocation, real property acquisition, and the replacement of Iow- and moderate- income housing described in Section 570.606. SECTION 7. The City has and will continue to comply with other provisions of the Act and with other applicable laws. SECTION 8. The City has and will continue to Certify regarding debarment, suspension, and other responsibility as follows: (a) The prospective recipients of the Section 108 Loan Guarantee funds and all of their contractors will certify to the best of their knowledge and belief, that they: (1) Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency; (2) Have not within a three year period preceding approval of their application, been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statues or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (3) Are not presently indicted for or otherwise criminally or civilly charged by a government entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (a)2 of this certification; and (4) Have not within a three-year period preceding approval of their application, had one or more public transactions (Federal, State or local) terminated for cause or default. SECTION 9. The City hereby assures and certifies with respect to its application for a loan guarantee pursuant to Section 108 of the Housing and Community Development Act of 1974, as amended, that it has made efforts to obtain financing for the activities described herein without the use of such guarantee, that it will maintain documentation of such efforts for the term of the loan guarantee, and that it cannot complete such financing consistent with the timely execution of the program plans without such guarantee. SECTION 10. The City has and will continue to hereby certify, to the best of its knowledge and belief, the following: (a) No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any or cooperative agreement, and the extension, continuation, renewal amendment, or modification of any /Federal contract, grant, loan or cooperative agreement; (b) If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or any employee of grant, loan or cooperative agreement, it will complete and submit Standard Form LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and (c) It will require that the language of paragraph (a) of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. SECTION 11. Continue to maintain a drug-free workplace by: (a) Publishing a statement notifying employees that the unlawful manufacture, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; (b) Establishing an ongoing drug-free awareness program to inform employees about the following: (1) The dangers of drug abuse in the workplace; (2) The grantee's policy of maintaining a drug-free workplace; (3) Any available drug counseling, rehabilitation, and employee assistance programs; and (4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace. (c) Making it a requirement that each employee engaged in grant activity be given a copy of the statement required by paragraph (a). (d) Notifying the employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will: (1) Abide by the terms of the statement; and (2) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction. (e) Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph (d)2 from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position and title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant. (f) Taking one of the following actions, within 30 calendar days of receiving notice under paragraph (d)2, with respect to any employee who is so convicted: (1) Taking appropriate personnel action against such employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended, and any other applicable federal and state laws; and (2) In appropriate circumstances, require an employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purpose by a Federal, State or local health, law enforcement, or other appropriate agency. SECTION 12. This Resolution shall be effective immediately upon its adoption. Presented by Approved as to form by CHRI~"'SALOMON~' JOHN M. KAHENY Director of Community Development City Attorney J:\COMMDEWRESOS\NYPRO SECTION 108 RESO.DOC COUNCIL AGENDA STATEMENT Item // Meeting Date 6/12/01 ITEM TITLE: Resolution opposing the Board of Trustees of the San Diego County Law Library's recommendation to close the South County Law Library. SUBMITTED BY: Mayor Shirley Hortonf~ (4/5Ihs Vote: Yes No ..X ) This resolution opposes the closing of the South County Public Law Library located in the South County Court House. RECOMMENDATION: That the City Council approved the resolution opposing the Board of Trustees of the San Diego County Public Law Library's recommendation to close of the South County Public Law Library and authorize the Mayor to send the resolution to the San Diego County Board of Supervisors and the Board of Trustees of the San Diego County Public Law Library on behalf of the city. BOARDS/COMMISSIONS RECOMMENDATION: None. DISCUSSION: The Board of Trustees of the San Diego County Public Law Library is planning to immediately close the South County branch located in the South County Courthouse in Chula Vista, while leaving open the Main, East County and North County branches. Each courthouse in the county has a public law library. The law libraries are an essential resource for attorneys practicing in the courthouses. The Board of Trustees of the San Diego County Law Libraries is planning to take this action in order to avoid a $300,000 budget shortfall for the coming year. This shortfall, resulting from a decrease in available civil filing fees, affects the whole library system and is not the fault of the South County branch. Nevertheless, the South County branch has been targeted for closure. The South County is the second-fastest growing region in San Diego County. Many individuals who are not attorneys use the law library for self-help on legal matters. The law library provides access to codes, statutes, court forms, practice guides and other materials to help individuals handle simple legal matters. In addition, the law librarians are essential in referring patrons to materials that can assist them. Many attorneys serving the South County are small firms or in solo practice. The South County Law Library is an important public resource for this community, which cannot be replaced by Page2, Item __ Meeting Dave 6/12/01 the downtown library. The Law Library also cannot be replaced by the Internet. Full on-line legal research is prohibitively expensive for many attorneys in solo or small firm practice. And many of the pro per individuals who use the Law Library do not have computer or Internet access. For these reasons, the minority and ethnic bar associations in San Diego County including La Raza Lawyers Association, Earl B. Gilliam Bar Association, Pan Asian Lawyers Association, Pilipino-American Lawyers of San Diego, and the Native American Lawyers Association have joined the South Bay Bar Association in opposing the closing of the South County Law Library. FISCAL IMPACT: None. Attachments: Resolution FF~OH : KATHLEB'~ E HOLDB~ FA× NO. : 61942563J_ Jun. 8S 2001 02:I~PM P2 IR.[~..[~.~T~R OF THE SAN DIEGO COUNTY LAW LIBRARY Charla$ R, Dyer 1105 Front Street San Diego, CA 92101 (619) 531-39130 fax (619) 238-7716 MEMBER~ OF THE BOARD OF TRUSTEES OF THE SAN DIEGO COUNTY LAW LIBRAR~Y Philip Burkhardt Honorable David M. Gill Burkhardt and Larson Main Courthouse P.O, Box 1369 220 W. Broadway Rancho Santa Fo. CA 92067 San Diego, CA 92101 (858) 756.3743 fax (858) 756-9805 Honorable Michael Hards burkhardt-larson~pacballnet East County Courthouse 250 East Main Street Karen Gleason-Huss El Cajon, CA 92020 1739 Sorrel Court Honorable William J. Howail, Jr. Cadsbad, CA 92009 East County Courthouse (760) 438-4082 250 East Main Street fax (760) 438-4290 El Cajon, CA 82020 kghlaw(~juno.com David Oberholtzer Honorable Jacqueline Stern Post Kirby' Noonan & Sweat 1555 Sixth Avenue 600 West Broadway, Suite 1100 Family Law Court San Diego, CA 92101 San Diego, CA 92101 (~ 19) 231-8686 fax (619) 23t~9593 dbo('d~Dkn ~,~0~m_m COUNTY BOARD OF SUPE~RVk~ORS Supervisor Grog Cox 1600 Pacific Highway Room 335 San Diego, CA 92101 (619) 531-5511 FROM : KATHLEEDt E HOLDEN FA× !xO. : 6i942563~9 Jun. ~ ~01 10:34AM P2 May 31, 2001 Mayor Shirley Hcrton and Members of the City Council City of Chula Vista 276 4r~ Ave,quo Chula Vista. CA 91910 R_e: Threatened closing of San DIe¢lo Cgun~y Public Law Library~ Dear Mayor Horton and Members of the City Council: I am the president of the South Bay Bar Association, an organization of about 65 attorneys praoticing and/or living in the South Bay. I am writing to ask for your help in preventing the Joss of an essential public resource to the City of Chula Vista and surrounding South Bay communities. The Board of Trustees of the San Diego County PubJic Law Library plans to immecliatety shut down the South County branch at the Courthouse in Chula Vista, while leaving open the Main, East County and North County branches. Each courthouse in the county has a public law library, which is an essential resource for attorneys practicing in the cou~house. The law iibrary has been part of'the South County Regiona~ Center since approximately i982. For 1999-2000, Me gate count for the library was 17,080 people The Board is planning to take this action in order to avoid a $300,000 t2udget shortfall for the upcoming year. This shortfall, resulting from a decrease in avaiJable civil filiqg fees, affects the whole library system, and ia not the fault of the South County branch. Nevertheless, the South County branch ha,e been targeted for closure. The South County is the second-fastest growing region in San Diego County. The South County's bopulation reflects a ~de diversity of ethnictty and economic backgrounds. Members of minority groups, including Hispanic, s, African-Americans and Asians are a majority of the population. FROM : KATHLEEN E HO_DEN FPJ< ND. : 6194256339 Jun. 84 200i Many individuals w~o are not attorneys use the law library for self-help with their legal problems The law library provides access to codes, statutes, coud forms, practice guides and other materials which heip individuals handle simple legal problems, in addition, tile law librarians are essentiat in referring patrons to the materials wl~ich can assist them. Most attorneys serviflg people in the South County are in small firm or solo practice. The Law Lil2rary is an important public resource for this community, which cannot be replaced by the downtown library. Nor can the Law Library be ;eptaced by the internet. Many of the pro per indivlduals who use the Law Library do not have computer and internet access. Full on-line legal research is proh o t ye y experts Ye for many attorneys in solo or Small flrm practice. The mJnorit'/and ethnic bar assodations in San Diego County, including La ;~aza Lawyers Association, Earl B. Gilliam Bar Association, Pan Asian Lawyers Association, PiJipino-Amedcan Lawyers of San Diego, and Native American Lawyers Association join the South Bay Bar Association in opposing the closing of the library. Thank you for your assistance in this important matter. Please contact me if I can be of any assistance, Very truly yours, Kathleen E. Holden, President, South Bay Bar Association RESOLUTION NO. 2001- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA OPPOSING THE BOARD OF TRUSTEES OF THE SAN DIEGO COUNTY LAW LIBRARY'S RECOMMENDATION TO CLOSE THE SOUTH COUNTY LAW LIBRARY WHEREAS, the Board of Trustees of the San Diego County Public Law Library is planning to immediately close the South County branch in the South County Courthouse in Chula Vista, while leaving open the Main, East County and North County branches; and WHEREAS, this action is planned in order to avoid a $300,000 budget shortfall for the coming year, which shortfall affects the whole library system and is not the fault of the South County branch, but nevertheless, the South County branch has been targeted for closure; and WHEREAS, the South County is the second-fastest growing region in San Diego County; and WHEREAS, the law library provides access to codes, statutes, court forms, practice guide and other materials to help individuals handle simple legal matters an is essential in referring patrons to materials that can assist them; and WHEREAS, the South County Law Library is an important public resource for this community, which cannot be replaced by the downtown library or the Internet; and WHEREAS, the minority and ethnic bar associations in San Diego County including La Raza Lawyers Association, Earl B. Gilliam Bar Association, Pan Asian Lawyers Association, Pilipino-American Lawyers of San Diego and the Native American Lawyers Association have joined the South Bay Bar Association in opposing the closing of the South County Law Library. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby oppose the Board of Trustees of the San Diego County Law Library's recommendation to close the South County Law Library. BE IT FURTHER RESOLVED that the City Clerk is hereby directed to send a certified copy of this resolution to the Board of Trustees of the San Diego County Public Law Library. Presented by Approved as to form by Shirley Horton John M. Kaheny Mayor City Attorney 06-1Z-~001 OZ:31pm From-SULLIVAN WERTZ ~¢DADE & WALLACE 61~-2330-0107 T-487 P 001/006 F-413 Sullivan Wert. z McDade & Wallace DATE: Jtme 12, 2001 TO: Susan Bigelow FIRM: FAX NO: (619) 585-5774 FROM: lohn S. Moot OUR FAX NO: (619) 696-9476 TOTAL PAGES: 6 (including cover sheet). If there is a problem with this facsimile transmission please call Diane at (619) 233-1888 at extension 237. RE: Closure of South Bay Law Library DOCUMENT: Interoffice Memorandum Y'es ( ) No (X) Original Will Follow by Mail COMMENTS: Per our phone conversation. 06-12-2001 02:31pm From-SULLIVAN ~RTZ McDADE & WALLACE 619-2330-0107 T-487 P 002/005 F-413 interoffice - L/ M E MO RAN D U M ~F- 5 ~- IIII ..................... To: CRD CE': Semor Managemen~ Fr~m: Pat Lopez Date: May 9, 200 l Subject: Closure of the South Bay Law Library and Mitigation of Possible Negative Impacts MAIN ISSUE: The conclusion that our South Bay Branch must be closed is rendered inescapable due mlresolvabte ct;trent and projected budgetary problems. Although the shutdown of that branch will have an impact upon our South Bay user community, it won't be as dramatic as that postulated at the recent Board of Trustees' meeting. This is said with the realization that we still have to traverse the minefields of various local pohtical and social agendas. ANALYSIS: There will probably be very audible protests to the closure although little or nothing in the way of active financial support to prevent said closing, it behooves us to demonstrate that our choice was based on hard evidence and that the c;iteria used was not skewed in any way, · The tirst indisputable fact is that if we maintain the branch at its current level of operation the entire library system will face a tremendous deficit. The second indisputable fact is that by closing SB - we will save over $165,000 per year. WHY SOU'I H BAY? Al'tar closely looking at service statistics, ~t ~s also indisputable that the South Bay branch provides the least ~hce to face reference service of any of'our hbraries, Th~s is based on ;he following formula: Reference stati.~tics for fiscal year 1999-2000 were 2 ! 86.(Th~s figure is ~ubstantially lower than thc other branches.) This means that SB answered l 06-12-2001 02:31pm From-SULLIVAN WERTZ McDADE & WALLACE 61g-2330-0107 T-487 P003/006 F-413 a total of 2186 reference questions during the entire year. When this figure is divided by the number of days the Law Library is open, the number of questions fielded were 8.7 per day. [We are open a total of 248 days (52 weeks x 5 days less 12 paid holidays)] Thus there were approximately 43 patrons assisted per week. South Bay reported i~29 phone calls for the same fiscal period If one assumes that probably one third of the calls may have been ret~rence related and were not already added into reference statistics, that's an additional 509 questions for the year. [2186 reference questions ~- 509 phone reference = 2695 patrons assisted. This assumption is based on anecdotal evidence from Main's experience with phone calls.] The addition of phone ret~rence increases the service level by only an additional 2 persons per day Reference type phone calls could j asr as easily be handled by Main or either of the other two branches. Ba$ed on this criteria~ either 8.7 or 10 patrons were assisted daily. · Thc annualized budget for SB is approximately $165,000. [$76,771 for personnel, $76,793 for books, and $7,517 for IS and other costs, not including insurance and miscellaneous costs). At $165,000 per year, it costs us about $665 a day to keep SB open and service 8- 10 patrons. (5165,000 diwded by 248 days) Based on these disappointing statistics alone, it is not economically prudent to continue to spend almost $165-170,000 a year to keep the facility open. A__CCESSIBILITY TO THE S^M¢ OP- SIMII[.AR SERVICeS- Accessibility to the same or similar services currently provided by SB should be one of the primary considerations for mitigation. Additionally we must also look to the long-term survival of the library system as a imegral unit. · SB is only 13 miles from the Main Law Library. There is a direct trolley line from qB (all the way from the San Ysidro border) to the Main Law Library. East County and Vista are much farther and transportatton is much more problematic. · If the County requires the relocation of the SB brm~ch to the assessor's office, we will lose probably 50% of the walk-in traltlc since the relocation site is outside of the courthouse complex Propinquity plays a large pan in the decisions of walk- 2 06-1Z-ZOO] OZ:31pm From-SULLIVAN WERTZ McDADE & WALLACE 61g-Z330-O]07 T-487 P 004/006 F-413 ins to use a facility. That would probably leave us wkh 4-5 patrons a day Relocation would also force us to incur additional costs uhe funds for which a~e non=existent, The public libraries in the region are well stocked with Nolo Press self-help books. These volumes are the choice of the self-represented litigants. For example: · Chula Vista Public Library, the area's largest bbrary, has the Nolo Press books It has a current set of California codes, the Marlindale-Habbcll, the municipal code for Chula Vista, and an old United States Code. Their catalog is available on line. It also has a very large public Internet access station. To supplemem regional collections, we could provide our 42 page Interact Legal gescatch Bookmark list. Thus SB patrons would have access to rec~nt state and federal cases, current state and federal laws, and various forms. They would also have access to the local rules, regulatory codes, and many other reference sources via the Imernet. We could offer to teach an lnternet legal research class in Chula Vista once a month on a day convenient to both CV and SDCPLL This would benefit the public librarians as well as the public. · lnterlibrary loan is another viable option. Our catalog will be available to the public via the lnternct The public could search our catalog from a [ibrary within the South Bay regmn or request a public librarian mediated search for a volume. ILL would be limi*ed to in-library usage of the volume ordered. Cm~emly there is a $1 processing fee at Chula Vista. However if tha~ fee is an OCLC charge, then with availabiliw of our catalog on the Imernet, OCLC wouldn't have to be searched. Furthermore, through our membership in the Tierra del Sol region of the Librazy of California, there is the potemial for transaction based reimbursemem for ILL depending on the Library of California's funding.. The Serra Librar~ Cooperative (which will be replaced by Tierra del Sol) uses a courier delivery system for il~s member libraries. We are in~esugating using this system for delivery of ILL materials to SB residents. As a member of Serra, there should be no charge for this service. 3 06-1Z-2001 OZ:32pm From-SULLIVAN WEETZ McDADE & WALLACE 515-Z330-0107 T-487 P 005/006 F-41S Ci~ libraries in the South Bay include but a*e not limited to Malcolm X/Valencia Park at 5148 Market; Otay Mesa at 3003 Coronado Ave.; San Ysidro at 101 W. San Ysidro Bird, San Ysidro. County libraries within the region include Bonita/Sunnyside at 5047 Central Ave; Imperial Beach at 810 Imperial Beach Blvd; and Lincoln Acres at 2725 Granger Avenue, Natmnal City. · Legal Referrals - We could provide a copy of our legal referral list to Serra for copying and distribution to all public libraries- . Formal or intbrmal Partnerships with other libraries within the region. This is an area that merits further exploration. Currently we have had classes for the Chula Vista Public Librarians, and the South Bay Serra member libraxians in South Bay. The classes included our Law Made Public cl~s a~ well as an introduction to our materials, legal advice vs. legal information, etc. These classes could be geared to area residents once or twace a month in the region. · Outreach: Explore the possibility of becoming part of a book mobile route once every week or two. A Main librarian could ride along with the Nolo ?res~ books, a lap top, our referral list, and our Interact Bookmark List. This way we would be going out into the community where regular library service is not usually available. The Ventura County Court, by means of an RV bookmobile, provides self:help legal access to county residents in poorer parts of the coanty especially to those who are limited English speakers. The court house is often the last place these residents will go lbr help. Realizing that, the Ventura SHLA Center ',vas founded. (Self Help Legal Access) The service also includes referrals to social service agencies and attorney referral services. Additionally one of the serwceS provided recently was the Spanish translation of ballot propositions with help from the League of Women Voters. Why shouldn't we be doing something like this? In considering disposition of the volumes from our Sou~h Bay branch, there are a number of viable alternatives- Oue alternative is the placement of the SB self help volumes adjacent to the SDVLP office and conference mom at Main. Main could then focus on developing areal SelfHetp Legal Center. Other alternatives involve the imegration of these volumes into our other branch collections or the donation of the volumes to the region's pubhc libraries. 4 06-12-200l 02:32pm From-SULLIVAN WERTZ UcDADE & WALLACE 619-2350-0107 T-4B? P 006/D06 F-413 CONCLUSIONS: Clo~ure is the only viable opdon that will help maimain library services or at least work to reduce the rate of deterioration of our other libraries. Shallow piecemeal cuts only work to delay the inevitable and since 1993 there have already been repeated deep cuts throughout our system These cu~s have made our firm users less likely to use ou~ services since we have either ceased to update or even purchase many of the books they request. Choices need to be made immediately. The entire Law Library is hemorrhaging. The Law Library is one integral unit. Wha~ ai'fects one portion eventually, and in our condinon, rapidly will spread to afI'ect the balance of the library body Isn't it much more feasible to eliminate one branch (the branch least utilized) and try To maintain thc relative health or,he other pa~s ~han to force the entire system onto life suppor~ due to lack of decisiveness? C.: ÆD¡Y/l11) .I STATE OF CAUFORNIA. RESOURCES AGENCY GRAY DAVIS. GovelnOI STATE HISTORICAL RESOURCES COMMISSION DEPARTMENT OF PARKS AND RECREATION p 0 80X 942896 RECEIVED SACRAMENTO. CA 942960001 (916) 653.6624 (916) 653.9824 FAX JOHN D. HENDERSON, FAIA 'O1 tIC -5 P12 :30 ".Chai'pe'5on SUE SCHECHTER .,.. Vice Chai'pecson CITY OF CHUlA VtS: LAUREN W. BRICKER, PhD elTY fJL8RK'S @FFIC~ PHILIP P. CHOY KATHLEEN GREEN ANTHEA M. HARTIG, PhD WILLIAM R. HILDEBRANDT, PhD MARY L MANIERY CAROLL. NOVEY DR. KNOX MELLON ,.Exeeut'" See'"ta'}' December 3, 2001 City Clerk City of Chula Vista P.O. Box 1087 Chula Vista, CA 91910-2631 SUBJECT: California Register of Historical Resources Nomination Coronado Belt Line Right-of-Way, Passes through Coronado, National City, Chula Vista, and Imperial Beach, San Diego County The State Historical Resources Commission is scheduled to consider the nomination of the above named resource to the California Register of Historical Resources at its regular meeting on February 1,2002 at 9:00 a.m., at Davis Community Chamber, Davis City Hall, 23 Russell Boulevard, Davis, California. (This building is accessible to people with disabilities.) At that time the Commission will consider public comments regarding eligibility of the property for the California Register. If you wish to comment on whether the property should be nominated to the California Register, please send your written comments to the Office of Historic Preservation at least two weeks in advance of the 5~heduled hearing. The California Register of Historical Resources is an authoritative guide to the state's significant historical and archeological resources. Historical resources listed in, or determined to be eligible for listing in, the California Register are afforded certain protections and given consideration under the California Environmental Quality Act (CEQA). Generally, there are no restrictions placed upon a private property owner regarding normal use, maintenance, or sale of a resource listed in the California Register. Additional information is provided on the enclosed Technical Assistance Bulletin #3, "California Register of Historical Resources: Questions and Answers," You may request a copy of the nomination from the Office of Historic Preservation, Address any questions or comments to Cynthia Howse, Office of Historic Preservation, at the above address, or call (916) 653- 9054. Sincerely, ! L-.... t~l £/2~ Dr. Knox Mellon State Historic Preservation Officer ....,....._--'u_------ - ------.- Notice Jarking for the February 1, 2002 State Historical Resources ~ommission Meeting at Davis City Hall is available at the Davis 3enior Center, 646 A Street, at the corner of ih and A Streets, with access from ih Street. California Register of H istorieal Resou fees: Questions and Answers The California Register of Historical Resources is an authoritative guide to California's significant historical and archeological resources to be used by state and local agencies, private groups, and citizens in identifying the existing historical resources of the state, and to indicate which resources deserve to be protected, to the extent prudent and feasible, from substantial adverse change. (See California Public Resources Code §5024.1) The California Register Program encourages public recognition and protection of resources of architectural, historical, archeological and cultural significance, identifies ~ c" historical resources for state and local planning purposes, and defines threshold eligibility for state historic preservation grant funding The State Historical Resources Commission (SHRC) oversees the California Register program, which the State of Historic Preservation (OHP) administers. is rapidly being depleted, historic proper- tural significance. Simply, resources must ties are considered premium commodities retain enough of their historic character or in many markets. Owners of designated appearance to be recognizable as historical properties may identify them with a plaque resources and to convey the reasons for their or marker. significance. A resource that has lost its historic character or appearance may still have sufficient integrity for the California What are the Criteria for listing Historical Register if, under criterion 4, it maintains the Resources in the California Register? potential to yield significant scientific or his- torical information or specific data. Resources eligible for listing include buildings, sites, structures, objects, or historic districts Historic Districts are a concentration of his- that retain historic integrity and are historically toric buildings, structures, objects, or sites significant at the local, state or national level within precise boundaries that share a com- under one or more of the following four crite- mon historical, cultural or architectural back- ria: ground. Individual resources within an his- toric district may lack individual significance 1) It is associated with events that have but be considered a contributor to the signifi- made a significant contribution to the cance of the historic district broad patterns of local or regional history, or the cultural heritage of California or the United States; 2) It is associated with the lives of per- sons important to local, California, or national history; 3) It embodies the distinctive characteris- tics of a type, period, region, or method of construction, or represents the work Can a Resource be Removed from the of a master or possesses high artistic Register? values; or 4) It has yielded, or has the potential to The State Historical Resources Commission yield, information important to the may remove an historical resource from the prehistory or history of the local area, California Register if the resource, through California, or the nation. demolition, alteration, or loss of integrity has lost its historic qualities or potential to yield In addition to having significance, resources information; or if new information or analysis must have integrity for the period of signifi shows that the historical resource was not cance. The period of significance is the date eligible at the time of its listing. or span of time within which significant events transpired, or significant individuals made If you think your property does not meet the their important contributions. Integrity is the criteria for listing and you wish to have your authenticity of a historical resource's physical property removed from the California Regis- identity as evidenced by the survival of char- ter, you may submit a written request for acteristics or historic fabric that existed during removal which provides detailed justification, the resource's period of significance. Alter- including photographic documentation show- ations to a resource or changes in its use over ing the current condition of the historical time may have historical, cultural, or architec- resource and photographic and/or archival What is Listed in the California Register? What are the Effects of Listing on Property Owners? The California Register includes: The rights and re- t Resources formally determined eligible sponsibilities of for, or listed in, the National Register of owners of historic Historic Places through federal preser- properties are the vation programs administered by the same as those of Office of Historic Preservation includ- owners of non-his- ing toric properties. t the National Register program; Listing does not . Tax Certification (Evaluation of prevent the use, sale Significance, part 1, 36 CFR Part or transfer of the 67); and property. Because . National Historic Preservation Act land use authority in (Section 106, 16 U.S.C. 470f) California generally belongs to the local reviews of federal undertakings; government, listing does not give either t State Historical Landmarks numbered the state or the federal government any 770 or higher; additional authority over the property. t Points of Historical Interest recom- mended for listing by the State Histori- Local governments may enact zoning cal Resources Commission; regulations that affect privately owned t Resources nominated for listing and historic properties within their jurisdictions. determined eligible in accordance with Contact the planning department of the criteria and procedures adopted by the city or county within which the property is SHRC, including located for information about local zoning t individual historic resources and regulations that may apply to historic historic districts; properties + resources identified as significant in historical resources surveys which meet certain criteria; and What are the Benefits of Designation to . resources and districts designated Property Owners? as city or county landmarks pursu- ant to a city or county ordinance In addition to the honor and recognition of when the designation criteria are owning an historically significant property, consistent with California Register listing on the California Register may criteria qualify the owner to benefit from historic preservation grants and other preservation programs such as the Mills Act, a local property tax incentive for historic preserva- tion- The State Historical Building Code can be applied when requirements of the Uniform Building Code threaten the histori- cal integrity of a designated resource. Historic designation often results in in- creased property values. Because the non-renewable stock of historic resources t documentation of the exterior appearance and comprehensive approach to historic pres- condition of the historical resource at the time ervation in local land use policies and of listing, and complete ownership informa- planning. tion. Where Do I Get Additional Information? How Does Listing Protect the Resource? You may address any questions or comments about the California Register Program to staff Under the California Environmental Quality of the Registration Unit, Office of Historic Act (CEQA), projects which are to be Preservation, PO Box 942896, Sacramento, permitted, funded or carried out by public CA 94296-0001; phone: 916 653-6624; agencies that may have an adverse impact email: calshpo@ohp.parks.ca.gov; fax: 916 upon historical resources are subject to 653-9824 environmental review Projects involving privately owned resources that Pertinent sections of the Public require a discretionary permit or Resources Code and the Cali- review from a public agency are . ' fornia Register of Historical also subject to environmental Resources regulations are review. Resources that are available in Technical Assis- listed, as well as those formally tance Bulletin #10 "California determined eligible for listing, State Law and Historic Preser- are considered significant vation. " historical resources for pur- poses of CEQA Instructions for nominating resources to the California By itself, historical designation Register are available in Tech- or listing in the California Regis- nical Assistance Bulletin #7 ter does not prevent the alter- "How to Nominate a Resource ation or demolition of an historic resource. to the California Register of Historical Re- However, like flashing signals at a railroad sources." crossing, listing alerts local government officials, property owners, and interested Additional information about CEQA and citizens to "stop, look, and listen" before historical resources is provided in Technical making decisions that may cause irrepa- Assistance Bulletin #1 California Environmen- rable damage to a non-renewable and tal Quality Act (CEQA) and Historical Re- irreplaceable aspect of California's cultural "ources. and historical heritage. The best protec- tion for historical resources results from Additional information about programs admin- the active efforts of concerned citizens istered by the California Office of Historic who promote awareness, recognition, and Preservation is available on-line at appreciation of locally significant historic www.ohp.parks.ca.gov. To request printed resources in a community which provides copies of written materials, contact 916 653- incentives for preservation and adopts a 6624 or calshpo@ohp.parks.ca.gov. Th" p"OIi"II" h" baa' fi,a",," i, part with Fa'"a' f"'" fcom 'ha Nallo,a' p", Sa~I". D'partm"t of 'ha "",i". c"" tho Nall"al Hi,f"i, P""~all" Aot ,f 1966 "am,,',' ,,' a'm"i,"'" byth, CalifomiaO""" ,fHi"o", P"'~all" Th, ""'"" so, 'pi,io,,',," """""'y """, 'ha ,iaw, " p""", of'h, Oap,rtmoo'offh, "f"i":""'" th" "',fl" ,f lia'a "m" " "mma~'" pm""" ""','c'a so'o"ama", Of ""mmoo'at", by tho Dapartmoo' of fha "'SOOI U"" TIlia V, of fha Ci,1I Righ" Ad of 1 964 so, 5"11,, 504 ,f fho Rahablillati" Aot of 1973. fha U.5. Oap,"moo' of tho ','ao" ,"oI'y pfOhibi', oo'awr,,1 'i",'mmall" " tho b"i, ,f "". ""'. "II"a' OIigi" ag'. 01 hso""p i, i" fa'"a"y. ",i,'" pmgrnm' If yoc baf"" yoc h"a baso ""'mmafa' ag"'" 10 soy pfOg"m. "'",fy. 01 f","~ " "'"iba' ""a. 01 if you "'i" furth" i,fo",all". pi.." weta" Offi" foe Eq,,1 Dpport",ity. U 5 O'partm'""ftha "",iOl. Nati"a' p", 5,~", 8°"7127. W"hi'gt" DC 20013.7127 08101