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Agenda Packet 2018_09_18 5pm
September 18, 2018City Council Agenda PRESENTATION BY SAN DIEGO ASSOCIATION OF GOVERNMENTS (SANDAG) CHAIRPERSON TERRY SINNOTT AND CHIEF DEPUTY EXECUTIVE DIRECTOR KIM KAWADA REGARDING SANDAG’S RECENT ACCOMPLISHMENTS, PLAN OF EXCELLENCE, AND EXECUTIVE DIRECTOR RECRUITMENT 18-0347B.18-0347 PRESENTATION BY PORT OF SAN DIEGO COMMISSIONER ANN MOORE ON UPCOMING OUTREACH ACTIVITIES TO SECURE PUBLIC INPUT ON DESIGN OF HARBOR AND SWEETWATER PARKS AT CHULA VISTA BAYFRONT 18-0422C.18-0422 CONSENT CALENDAR (Items 1 - 5) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Councilmember, a member of the public, or staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a “Request to Speak” form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed immediately following the Consent Calendar. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 5.54, REGULATING TAXICABS AND OTHER FOR-HIRE VEHICLES THROUGH ADOPTION OF SAN DIEGO METROPOLITAN TRANSIT SYSTEM CODIFIED ORDINANCE NO. 11 (SECOND READING AND ADOPTION) 18-04351.18-0435 Police Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. In addition, notwithstanding the foregoing, the “Project” also qualifies for an Exemption pursuant to Section 15061(b) (3) of the California Environmental Quality Act State Guidelines. Environmental Notice: Council adopt the ordinance. Recommended Action: Page 2 City of Chula Vista Printed on 9/13/2018 2018-09-18 Agenda Packet Page 2 September 18, 2018City Council Agenda RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE AMENDED AND RESTATED WASTEWATER DISPOSAL AGREEMENT AND DIRECTING THE METRO COMMISSION / METRO JPA REPRESENTATIVE TO SUPPORT THE SAME AT METRO COMMISSION / METRO JPA MEETINGS 18-03102.18-0310 Engineering Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council adopt the resolution. Recommended Action: A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FORM OF A MASTER ENCROACHMENT AGREEMENT FOR THE INSTALLATION OF NETWORK FACILITIES WITHIN THE PUBLIC RIGHT-OF-WAY B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHAPTER 11 (ENGINEERING FEES) OF THE CITY’S MASTER FEE SCHEDULE TO ESTABLISH NETWORK FACILITY ENCROACHMENT PERMIT FEES 18-03793.18-0379 Engineering Department Department: The Development Services Director has reviewed the proposed activity, approval of an agreement, for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "project" as defined under section 15378 of the State CEQA Guidelines; therefore, pursuant to section 15060 (c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Environmental Notice: Council adopt the resolutions. Recommended Action: Page 3 City of Chula Vista Printed on 9/13/2018 2018-09-18 Agenda Packet Page 3 September 18, 2018City Council Agenda RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING THE SUMMARY VACATION OF AN IRREVOCABLE OFFER OF DEDICATION OF LOT “6” FOR PUBLIC PARK PURPOSES AND OF LOT “7” FOR SCHOOL PURPOSES PER FINAL MAP NO. 16112, CHULA VISTA TRACT NO. 12-05, OTAY RANCH VILLAGE 2 SOUTH 18-03444.18-0344 Development Services Department Department: The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the Project was adequately covered in previously certified Final Second Tier Environmental Impact Report, EIR 02-02 and Final Supplemental Environmental Impact Report, SEIR 12-01 for the Otay Ranch Village Two Sectional Planning Area (SPA) Plan. Thus, no further environmental review or documentation is required. Environmental Notice: Council adopt the resolution. Recommended Action: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING COMPETITIVE BIDDING, APPROVING A SOLE-SOURCE PURCHASE AGREEMENT FOR TWO (2) PIERCE ARROW XT TRIPLE COMBINATION PUMPER / FIRE ENGINES BETWEEN THE CITY AND SOUTH COAST FIRE EQUIPMENT, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE SAME 18-03975.18-0397 Fire Department Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council adopt the resolution. Recommended Action: ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons speaking during Public Comments may address the Council on any subject matter within the Council’s jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from discussing or taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. Page 4 City of Chula Vista Printed on 9/13/2018 2018-09-18 Agenda Packet Page 4 September 18, 2018City Council Agenda PUBLIC HEARINGS The following item(s) have been advertised as public hearing(s) as required by law. If you wish to speak on any item, please fill out a “Request to Speak” form (available in the lobby) and submit it to the City Clerk prior to the meeting. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DENYING THE APPEAL BY ROD BISHARAT AND AFFIRMING THE PLANNING COMMISSION’S APPROVAL OF DESIGN REVIEW PERMIT DR15-0037 AND CONDITIONAL USE PERMIT CUP15-0023 TO CONSTRUCT A 2,380 SQUARE-FOOT AUTOMATED CARWASH BUILDING WITH VACUUM STATIONS ON A 0.55 ACRE SITE LOCATED AT 495 TELEGRAPH CANYON ROAD, SUBJECT TO THE CONDITIONS CONTAINED THEREIN 18-03116.18-0311 Development Services Department Department: The Development Services Director has reviewed the Project for compliance with the California Environmental Quality Act (CEQA) and has determined that the Project qualifies for a categorical exemption pursuant to Section 15332 of the State CEQA Guidelines. Thus, no further environmental review is required. Environmental Notice: Council conduct the public hearing and adopt the resolution. Recommended Action: Page 5 City of Chula Vista Printed on 9/13/2018 2018-09-18 Agenda Packet Page 5 September 18, 2018City Council Agenda ACTION ITEMS The Item(s) listed in this section of the agenda will be considered individually by the Council and are expected to elicit discussion and deliberation. If you wish to speak on any item, please fill out a “Request to Speak” form (available in the lobby) and submit it to the City Clerk prior to the meeting. PRESENTATION ON THE STATUS OF THE MILLENIA (EASTERN URBAN CENTER) FIRE STATION NO. 10 A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING CONSTRUCTION OF THE MILLENIA (EASTERN URBAN CENTER) FIRE STATION NO. 10 B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A SOLE SOURCE PURCHASE WITH SOUTH COAST FIRE EQUIPMENT AND A 10-YEAR LEASE PURCHASE AGREEMENT WITH JP MORGAN CHASE BANK, N.A. FOR THE ACQUISITION OF ONE (1) PIERCE ARROW XT TRIPLE COMBINATION PUMPER / FIRE ENGINE AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE THE FINAL PURCHASE AND LEASE AGREEMENT 18-03647.18-0364 Development Services Department Department: The Project was adequately covered in previously adopted Final Environmental Impact Report for the Eastern Urban Center (Millenia) Sectional Planning Area (SPA) Plan (FEIR 07-01)(SCH#2007041074). Environmental Notice: Council hear the report and adopt the resolutions. Recommended Action: Page 6 City of Chula Vista Printed on 9/13/2018 2018-09-18 Agenda Packet Page 6 September 18, 2018City Council Agenda CONSIDERATION OF REAPPOINTMENTS TO THE FOLLOWING COMMISSIONS: A. REAPPOINTMENT TO FIRST TERM - Jon Milburn, Planning Commission B. REAPPOINTMENTS TO SECOND TERMS - Maria Garcia-Lopez, Parks and Recreation Commission - Gabe Gutierrez, Planning Commission - Michael Lengyel, Growth Management Oversight Comm. 18-03908.18-0390 City Clerk Department: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Environmental Notice: Council make the reappointments as appropriate. Recommended Action: CITY MANAGER’S REPORTS Page 7 City of Chula Vista Printed on 9/13/2018 2018-09-18 Agenda Packet Page 7 September 18, 2018City Council Agenda Materials provided to the City Council related to any open-session item on this agenda are available for public review at the City Clerk’s Office, located in City Hall at 276 Fourth Avenue, Building A, during normal business hours. In compliance with the AMERICANS WITH DISABILITIES ACT The City of Chula Vista requests individuals who require special accommodations to access, attend, and/or participate in a City meeting, activity, or service, contact the City Clerk’s Office at (619) 691-5041(California Relay Service is available for the hearing impaired by dialing 711) at least forty-eight hours in advance of the meeting. Most Chula Vista City Council meetings, including public comments, are video recorded and aired live on AT&T U-verse channel 99 (throughout the County), on Cox Cable channel 24 (only in Chula Vista), and online at www.chulavistaca.gov. Recorded meetings are also aired on Wednesdays at 7 p.m. (both channels) and are archived on the City's website. Sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online. Page 9 City of Chula Vista Printed on 9/13/2018 2018-09-18 Agenda Packet Page 9 P a g e | 1 September 18, 2018 File ID: 18-0353 18-0435 TITLE ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 5.54, REGULATING TAXICABS AND OTHER FOR-HIRE VEHICLES THROUGH ADOPTION OF SAN DIEGO METROPOLITAN TRANSIT SYSTEM CODIFED ORDINANCE NO. 11 (SECOND READING AND ADOPTION) RECOMMENDED ACTION Council adopt the ordinance. SUMMARY The Police Department recommends contracting with San Diego Metropolitan Transit System (MTS) to regulate taxicabs and other for-hire vehicles, which would provide a high level of regulatory service to a greater number of for-hire vehicles, to the benefit of public safety. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. In addition, notwithstanding the foregoing, the Director of Development Services has also determined that the “Project” qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION AB 1069 changed taxi regulation in California. The bill was supported by the taxi industry to make taxis more competitive with Uber and Lyft by reducing operating costs. The bill replaced longstanding city-by- city regulation, requiring multiple permits and fees, with regional regulation and a single permit and fee. Enacted in 2017, the bill imposes requirements on cities that are effective on January 1, 2019. One, in order to require a business license, the taxi company must be substantially located in the city. Substantially located means the taxi company has a primary business address in the city, or the largest share of the taxi’s originating trips are in the city, as demonstrated by a taxicab operator. Two, a city must create a Joint 2018-09-18 Agenda Packet Page 10 P a g e | 2 Powers Agreement with other government entities, or enter into an agreement with a transit agency, for the purpose of regulating taxicab companies and taxicab drivers. Three, regardless of where a taxi is substantially located or the type of regional regulation adopted, cities may impose certain regulations on taxis, including: a) limiting the number of taxicab providers that may use taxi stand areas or pick up street hails; b) requiring taxicab service providers to provide services in a manner that ensures equal access for all populations in the city; and c) enacting other public health, safety or welfare ordinances relating to taxicabs. The Traffic Unit of the Police Department administers the City’s taxicab ordinance, Section 5.54 of the Chula Vista Municipal Code. The Department issues taxi medallions as part of the annual business license renewal process. Taxicab businesses are required to pay an annual City business license fee of $150 for the first taxi and $50 for each additional taxi. The City currently has 27 licensed taxicab businesses with a total of 54 cabs, bringing in $5,400 in annual license fees. Earlier this year, the Department sent letters to taxicab businesses licensed in Chula Vista to advise them that the City was considering contracting with the Metropolitan Transit System (MTS) by January 1, 2019, as a result of AB 1069. The letter included a link to AB 1069 and welcomed questions and comments. The Police Department is recommending transferring regulation of taxicabs to MTS. MTS is a transit agency that has been providing transit services in the region since 1976 (originally named the Metropolitan Transit Development Board), including bus and trolley services in Chula Vista. MTS has a dedicated Taxicab Administration unit and a robust inspection program to protect the public safety. Responsibilities include determining owner eligibility; inspecting vehicles; issuing permits; monitoring compliance with administrative and operational regulations; and investigating passenger complaints. In addition to regulating taxis, the Taxicab Administration unit regulates other for-hire transportation services, such as jitneys (shuttles following a fixed route), charter, sightseeing, low-speed and non-emergency medical vehicles. MTS provides regulatory services by contract for these vehicles in most cities in its service area, including El Cajon, Imperial Beach, National City, La Mesa, Lemon Grove, Poway, Santee and San Diego. Only Coronado and Chula Vista administer their own taxicab regulations, and Chula Vista does not regulate jitneys, sightseeing, low-speed or non-emergency medical vehicles in any manner, other than requiring a business license. A fact sheet on the MTS Taxicab Administration, which lists services and fees, is attached to this report. Transfer would provide a higher level of regulatory service to a greater number of transportation services to the benefit of public safety and would free up Police Department personnel to work on other public safety needs. Transfer would require amending the City’s ordinance to adopt the MTS ordinance and entering into an agreement with MTS. The proposed ordinance reserves the City’s ability to regulate any taxi stands that may be established in future development, as well as requires taxi companies that are substantially located in Chula Vista, as defined by AB 1069, to pay an annual business license tax. If Council approves, the agreement with MTS will go to the MTS board for consideration. If approved by the MTS board, the agreement would become effective on November 1, 2018. If the MTS board approves, the Department would notify taxicab licensees by letter. 2018-09-18 Agenda Packet Page 11 P a g e | 3 DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. Approving the agreement for taxicab administration supports the goal of operational excellence by allowing San Diego Metropolitan Transit System to regulate taxicab companies and taxicab drivers, which would free up Police Department personnel to work on other public safety matters. CURRENT-YEAR FISCAL IMPACT As part of the annual business license renewal process, the City will continue to collect business licenses from the taxicab businesses, which is $5,400 annually. Approving the agreement with MTS for taxicab administration will result in no current-year fiscal impact. ONGOING FISCAL IMPACT Approving the agreement with MTS for taxicab administration will have no ongoing fiscal impact. ATTACHMENTS ATTACHMENT 1: Agreement with San Diego Metropolitan Transit System for Administration of Taxicab and Other For-Hire Vehicle Regulations ATTACHMENT 2: Ordinance amending Chula Vista Municipal Code Section 5.54, Taxicabs, redline-strikeout ATTACHMENT 3: Ordinance amending Chula Vista Municipal Code Section 5.54 ATTACHMENT 4: MTS Taxicab Administration fact sheet ATTACHMENT 5: MTS Codified Ordinance No. 11, Providing for the Licensing and Regulating of Transportation Services Within the City Staff Contact: Captain Vern Sallee, Police Department 2018-09-18 Agenda Packet Page 12 G2122.0-18 AGREEMENT FOR ADMINISTR ATION OF TAXIC AB AND OTHER FOR-HIRE VEHICLE REGULATIONS BETWEEN SAN DIEGO METROPOLITAN TRANSIT SYSTEM AND CITY OF CHULA VISTA THIS AGREEMENT is entered into by and between the City of Chula Vista,a municipal corporation,276 4th Avenue,Chula Vista,CA (herein called “CITY”),and the San Diego Metropolitan Transit System,a public agency,1255 Imperial Avenue,Suite 1000,San Diego,CA (herein called “MTS”),in view of the following recitals,which are a substantive part of this Agreement: RECITALS A.MTS is authorized under Section 120266,Chapter 2,Division 11 of the California Public Utilities Code (PUC),to enter into contracts to regulate transportation services within a city in its area of jurisdiction; B.CITY is within MTS’s jurisdiction created January 1,1976,under Section 120050,et seq.,Chapter 2,Division 11 of the PUC; C.CITY regulated taxicab and other for-hire vehicles in accordance with the Chula Vista City Municipal Code,Chapter 5.54.010;and D.CITY desires that MTS regulate taxicabs and other for-hire vehicles and services such as charter vehicles,sight-seeing vehicles,nonemergency medical vehicles,and jitney vehicles pursuant to PUC Section 120266 and in accordance with MTS Ordinance No.11,“An Ordinance Providing for the Licensing and Regulating of Transportation Services W ithin the City” NOW THEREFORE,in consideration of the mutual covenants and conditions contained in this Agreement,CITY and MTS agree as follows: 1.MTS will administer and enforce its taxicab and other for-hire vehicles Ordinance policies and regulations as in effect on November 1,2018, and as thereafter from time to time amended by MTS, and thereby regulate such taxicab and other for-hire vehicles and transportation services rendered wholly within the CITY’s corporate limits during the period of November 1,2018 through June 30, 2019, pursuant to PUC Section 120266. 2.MTS will collect and administer all such regulatory fees,fines,and forfeitures as now or hereafter provided by the MTS Taxicab and Other For-Hire Vehicles Ordinance No.11 policies,and regulations. 3.The CITY Manager and MTS Chief Executive Officer may supplement this agreement by executing a Memorandum of Understanding relative to administrative and operating procedures of taxicab and other for-hire vehicles regulation and to provide for reimbursable staff and legal support services. 2018-09-18 Agenda Packet Page 13 G2122.0-18 4.This Agreement shall be effective upon execution by the City and MTS and shall continue until written notice of termination.This Agreement may be terminated at any time by either party upon 180 days’written notice to the other party. IN W ITNESS THEREOF,this agreement is executed by the CITY acting by and through its Mayor pursuant to Council Resolution No., and by MTS acting through its Chief Executive Officer. CITY OF CHULA VISTA SAN DIEGO METROPOLITAN TRANSIT SYSTEM Mary Casillas Salas Paul C. Jablonski Mayor Chief Executive Officer Date:Date: W E HEREBY APPROVE the form of the foregoing Agreement. Glen R.Googins Office of the General Counsel City Attorney Date:Date: Attest: -2- 2018-09-18 Agenda Packet Page 14 Chula Vista Municipal Code Chapter 5.54 TAXICABS* Page 1/11 The Chula Vista Municipal Code is current through Ordinance 3414, passed January 9, 2018. Chapter 5.54 TAXICABS AND OTHER FOR-HIRE VEHICLES* Sections: 5.54.010 Purpose – Intent. 5.54.020 Certificate – License required. 5.54.030020 Definitions. 5.54.040 Certificate – Application – Contents. 5.54.050 Certificate – Application – Investigation required. 5.54.055 Inspection criteria. 5.54.060 Certificates issued by police chief. 5.54.070 Certificate for existing licensed taxicabs. 5.54.080 Certificate – Cancellation as certified operator. 5.54.090 Insurance required. 5.54.100 Fare rates. 5.54.110 Certificate – Cancelled when. 5.54.120 Certificate – Grounds for suspension or revocation. 5.54.130 Certificate – To be surrendered when. 5.54.140 Route required. 5.54.150 Receipts for passengers. 5.54.160 Fare – Nonpayment deemed infraction when. 5.54.170 Soliciting for patronage prohibited when. 5.54.180 Exceeding rated seating capacity prohibited. 5.54.190 Parking prohibited where – Exceptions. 5.54.200 Obedience to orders of police and firefighters required. 5.54.210 Drivers’ permits required. 5.54.220030 Taxicab stands – Established – Designation. 5.54.230040 Taxicab stands – Unattended vehicles prohibited when. 5.54.240050 Taxicab stands – Hours of operation. 5.54.250 Certificate – Number to be displayed on vehicle. 5.54.260 Color scheme restrictions. 5.54.270 Information cards – Display required where – Contents. 5.54.280 Violation – Penalty. 5.54.290 Appeals to city council. * For statutory provisions for local regulation of vehicles for hire, see Veh. Code § 16501; for provisions for carriers generally, see Civil Code § 2065, et seq., and Public Util. Code § 200, et seq.; for provisions for financial responsibility of taxicab companies, see Veh. Code § 16500, et seq. Prior ordinance history: Prior code §§ 31.5, 31.17 – 31.28, 31.38 – 31.44 and Ords. 1911 and 1881. 2018-09-18 Agenda Packet Page 15 Chula Vista Municipal Code Chapter 5.54 TAXICABS* Page 2/11 The Chula Vista Municipal Code is current through Ordinance 3414, passed January 9, 2018. 5.54.010 Purpose – Intent. The purpose of this chapter is to regulate taxicab operators in the city to best serve the public interest and to permit a sufficient degree of flexibility in operation so as to allow an increased number of vehicles to be operated under the direction and supervision of a certified operator during peak demand hours. Any vehicles operating and picking up passengers within the city shall first have paid the license tax and administrative fee provided in the master fee schedule and meet all requirements for operation as set forth in this chapter. It is the intent of the city to prohibit the transfer of a certificate by an approved operator. It shall be required that any such operator surrender his certificate to the city if he should cease to do business within the city. (Ord. 2574 § 1, 1993; Ord. 2003 § 2, 1982). The purpose of this chapter is to provide for the regulation of taxicabs and other for-hire vehicles within the city of Chula Vista through adoption of San Diego Metropolitan Transit System (MTS) Codified Ordinance No. 11, and to implement the provisions of California Public Utilities Code Section 12066 by contract with MTS to license and regulate for-hire transporation services within the city. 5.54.020 Certificate – License required. No person shall engage in the business of operating any taxicab or taxicabs within the city without first having obtained a certificate to operate from the police chief. All vehicles shall meet the standards and qualifications for vehicles and drivers as provided by this chapter and the full license tax must be paid, regardless of the duration of the time the taxicabs are assigned to operation within the city. Should reports be received that the procedure is being violated, the operator’s certification may be suspended or revoked. Every person conducting, managing or operating a business in which taxicabs are used shall pay an annual tax as set forth in Section 5.54.020 of the master tax schedule in CVMC 5.07.030, prorated to the nearest quarter. (Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). 5.54.030020 Definitions. For the purposes of this chapter, unless otherwise expressly stated, the following words and phrases shall have the meanings respectively ascribed to them by this section: A. “Certified operator” means a person authorized by the police chief to operate a taxicab or taxicabs in the city and who has been issued a certificate for the operation of such vehicles. B. “Driver” means every person in charge of, or operating, any passenger-carrying or motor-propelled vehicle, either as agent, employee, or otherwise, of owner; as owner; or under the direction of the owner. C. “Person” means any individual, partnership, association, corporation or other organization owning, operating or proposing to operate any taxicab or taxicabs within the city. D. “Street” means any place commonly used for the purpose of public travel. E. “Taxicab” means every automobile or motor-propelled vehicle of a distinctive color or colors, and/or of public appearance such as in common usage in this country for taxicabs (e.g., vehicles such as pickup trucks and dune buggies would not normally be used for taxicab purposes), and/or operated at rates per mile, or for wait-time, or for both, and equipped with a taximeter, used for the transportation of passengers for hire over the public streets of the city, and not over a defined 2018-09-18 Agenda Packet Page 16 Chula Vista Municipal Code Chapter 5.54 TAXICABS* Page 3/11 The Chula Vista Municipal Code is current through Ordinance 3414, passed January 9, 2018. route, and irrespective of whether the operations extend beyond the boundary lines of the city, and such vehicle is routed under the direction of such passenger or passengers, or of such persons hiring the same. G. “Taximeter” means and includes any mechanical or electronic instrument, appliance, device or machine by which the charge for hire of a passenger-carrying vehicle is mechanically or electronically calculated for distance traveled and time consumed, and upon such instrument, appliance, device or machine, such charge is indicated by figures. H. “Flag drop” means the starting of the taximeter at the time that the taxi is hired. Flag drop may also be understood to mean the initial charge assessed at the time the taxicab is hired. (Ord. 2574 § 2, 1993; Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). The definitions set forth in Section 1.1 of San Diego Metropolitan Transit System Codified Ordinance No. 11 shall govern this chapter. 5.54.040 Certificate – Application – Contents. All persons applying for a certificate for the operation of one or more taxicabs shall file a sworn application therefor on forms provided, stating as follows: A. The name and address of the owner and person applying; B. The number of vehicles the applicant wishes to be certified to operate in Chula Vista; C. The intended make, type, year and passenger seating capacity of each taxicab to be operated in Chula Vista; E. A description of the proposed color scheme, insignia, trade style and/or any other distinguishing characteristics of the proposed taxicab design; F. Such other information as the police chief may in his discretion require. (Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). 5.54.050 Certificate – Application – Investigation required. Before any application is acted upon, the police chief shall cause an investigation to be made of: A. The number, kind and type of equipment and the color scheme to be used. All vehicles, if they are more than two years of age, must have on deposit with the city a certification showing that an annual inspection meeting the requirements and standards set forth in CVMC 5.54.055 has been made by an acceptable government agency or an inspection station licensed under Section 9887.1 of the Business and Professions Code of the state and approved by the chief of police or designee. Failure to satisfy said inspection requirements may result in the suspension of the certificate for said vehicle until necessary corrections have been made. Said inspection shall be renewed on an annual basis. All vehicles shall be owned by the certified operator. Where certified operator is an association, each member of the association shall be the owner of that member’s taxicab(s). B. Each certified operator shall be the owner of said taxicabs and shall maintain said vehicles in a clean and sanitary condition at all times. Where certified operator is an association, each 2018-09-18 Agenda Packet Page 17 Chula Vista Municipal Code Chapter 5.54 TAXICABS* Page 4/11 The Chula Vista Municipal Code is current through Ordinance 3414, passed January 9, 2018. member of the association shall be the owner of that member’s taxicab(s), and be responsible for maintaining that member’s vehicle(s) in a clean and sanitary condition at all times. If any of said taxicabs are leased to drivers by the certified operator, the certified operator shall immediately provide the police chief with a copy of said lease; or names of lessees holding leases in a form previously submitted and on file; provided, however, that such lease arrangement shall not relieve the certified operator of any responsibilities and obligations for the safe maintenance and cleanliness of the taxicabs which has been leased. (Ord. 2574 § 3, 1993; Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). 5.54.055 Inspection criteria. Specific criteria for taxicabs to pass inspection shall be determined and published in policy form by the chief of police or designee. Minimum taxicab standards which must be maintained to comply with this section shall include, but not be limited to, the following: A. Tires. Tires shall meet the requirements of the California Vehicle Code. Hubcaps or wheel covers shall be on all wheels for which hubcaps or wheel covers are standard equipment. B. Taximeter. Taximeter shall have been inspected, tested, approved and sealed by an authorized representative of the state of California, and thereafter so maintained in a manner satisfactory to the chief of police or designee. Taximeter shall be working with the inspection seal in its original, unbroken state. C. Brakes. Brakes, brake lights or brake systems shall be operable and otherwise meet the requirements of the California Vehicle Code. Both the parking and hydraulic or other brake system must be operable. D. Mirrors. Side and rear-view mirrors shall not be missing or defective. E. Interior/Exterior. The interior and exterior of the taxicab shall be maintained in a safe and efficient operating condition, and meet California Vehicle Code requirements and the requirements of this chapter at all times when in operation. F. Interior. The interior of each vehicle and the trunk or luggage area shall be maintained in a reasonably clean condition, free of foreign matter, offensive odors and litter. The seats shall be kept reasonably clean and without large wear spots. The door handles and doors shall be intact and clean. The trunk or luggage area shall be kept empty, except for spare tire and personal container for the driver, not exceeding one cubic foot in volume, and emergency equipment, to allow maximum space for passenger luggage and belongings. G. Body Condition. There shall be no tears or rust holes in the taxicab body and no loose pieces hanging from the taxicab body. Fenders, bumpers and light trim shall be securely fixed to the taxicab. No extensive unrepaired body damage shall be allowed. The taxicab shall be equipped with front and rear bumpers. The exterior of the taxicab shall be maintained in a reasonably clean condition so as not to obscure the approved color scheme and/or taxicab markings. H. Paint. The taxicab shall be painted and marked in accordance with CVMC 5.54.260. I. Lights. Headlights shall be operable on both high and low beam. Taillights, parking lights, signal lights, and interior lights shall all be operable. 2018-09-18 Agenda Packet Page 18 Chula Vista Municipal Code Chapter 5.54 TAXICABS* Page 5/11 The Chula Vista Municipal Code is current through Ordinance 3414, passed January 9, 2018. J. Wipers. Each taxicab shall be equipped with adequate windshield wipers maintained in good operating condition. K. Steering. Excessive play in the steering mechanism shall not exceed three inches free play in turning the steering wheel from side to side. L. Engine. The engine compartment shall be reasonably clean and free of uncontained combustible materials. M. Mufflers. Mufflers shall be in good operating condition. N. Windows. The windshield shall be without cracks or chips that could interfere with the driver’s vision. All other windows shall be intact and able to be opened and closed as intended by the manufacturer. The windows and windshield shall be maintained in a reasonably clean condition so as not to obstruct visibility. O. Door Latches. All door latches shall be operable from both the interior and exterior of the taxicab. P. Suspension. The taxicab’s suspension system shall be maintained so that there are no sags because of weak or broken springs, or excessive motion when the taxicab is in operation because of weak or defective shock absorbers. Q. Seats. All seats shall be securely fastened. Seat belts, when required by the California Vehicle Code, shall be installed. The upholstery shall be free of grease, holes, rips, torn seams and burns. R. Each taxicab shall be equipped with a device which shall plainly indicate to a person outside the taxicab whether the taximeter is in operation or is not in operation. S. Each taxicab shall be assigned a body number by the certified operator. The trade name and body number shall be painted or permanently affixed in letters and numerals no less than four inches high on both sides and the rear of the taxicab. T. All taxicabs shall be equipped and operated so that they may be dispatched by two-way radio communication or other communication systems, as may be approved for such use by the chief of police, in response to a telephone or other request for service by a prospective passenger. U. All taxicabs shall be equipped with a light on top clearly identifying the taxicabs as taxicabs. V. Any other aspect of the taxicab’s condition shall exist which reasonably and rationally pertains to the operating safety of the taxicab or to passenger or pedestrian safety. Any taxicab which fails to meet the requirements of the California Vehicle Code, this section or other inspection criteria, as delineated in policy form by the chief of police, shall be immediately ordered out-of-service by the inspecting individual or agency. Said agency shall immediately inform the chief of police or designee of any such actions. Ordering a taxicab out-of-service does not constitute a suspension or revocation of the permit. Permits for taxicabs which have been ordered out-of-service may be transferred to other taxicabs 2018-09-18 Agenda Packet Page 19 Chula Vista Municipal Code Chapter 5.54 TAXICABS* Page 6/11 The Chula Vista Municipal Code is current through Ordinance 3414, passed January 9, 2018. owned by the same certified operator which did not carry a valid permit for the city of Chula Vista. Resumption of in-service status shall be contingent upon remedy of any deficiencies or violations noted in the failed inspection. For all taxicabs so reinstated to in-service status, the inspecting individual or agency shall immediately inform the chief of police or designee of any such actions. (Ord. 2574 § 4, 1993). 5.54.060 Certificates issued by police chief. The police chief shall grant a certificate to those persons applying therefor who, in his opinion, are fully qualified in accordance with the requirements of this chapter. No certificate shall be issued to any person who has not fully complied with all of the requirements of this chapter necessary to be complied with before the commencement of the operation of the proposed service. With each certificate issued, the police chief shall issue a numbered medallion of a distinctive design. The certificate holder shall cause the medallion to be fixed to the outside left rear portion of each taxicab to be operated in Chula Vista. The medallion shall be fixed in a position in plain view from the rear of the taxicab. Medallions which are lost or defaced by accident, etc., shall be reported to and replaced by the police chief. (Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). 5.54.070 Certificate for existing licensed taxicabs. The provisions of this chapter shall be effective immediately for new operators and on January 1, 1983 for existing operators. (Ord. 2003 § 2, 1982). 5.54.080 Certificate – Cancellation as certified operator. After the service for which a certificate is granted in this chapter is discontinued, or if the certified person sells or discontinues his or its business, except as provided in this chapter, the certificate granted under this chapter shall be automatically cancelled and shall be reissued only in accordance with the provisions of this chapter. Each certificate issued pursuant to the provisions of this chapter is separate and distinct and shall be transferable from the person to whom issued or by whom renewed to another person upon the approval of the police chief; provided, however, that where a certificate is issued pursuant to the provisions of this chapter to a form of legal entity wherein control is evidenced by shares of stock or such other evidence of ownership (including, but not necessarily limited to, a corporation, partnership, a joint venture, a joint stock company, or a business trust) and the majority interest in said entity is transferred from that entity to another person or entity, said transfer, whether voluntary, by operation of law or otherwise, shall be made only upon the approval of the police chief. The application for the transfer of said certificate shall certify that the owner of said certificate has notified the proposed transferee of the requirements of this chapter pertaining to the transfer of said certificate; and whenever such application for a transfer of certificate is made as provided for in this chapter, the police chief shall cause an investigation to be made. (Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). 5.54.090 Insurance required. It is unlawful to operate any taxicab unless there shall be on file with the city of Chula Vista a currently valid certificate of insurance executed and delivered by a company admitted by the 2018-09-18 Agenda Packet Page 20 Chula Vista Municipal Code Chapter 5.54 TAXICABS* Page 7/11 The Chula Vista Municipal Code is current through Ordinance 3414, passed January 9, 2018. California Department of Insurance; or, if not admitted in California, a company which shall have a Best’s Key Rating Guide rating of “A”, Class V or shall otherwise meet with the approval of the city, certifying that such insurance company extends business automobile liability insurance coverage to the operator and all of the agents and employees of said operator. The certificate shall be accompanied by a policy endorsement which names the city of Chula Vista and all of its officers and employees as additional insured and provides cross-liability protection to the employees of the city of Chula Vista in the same manner as if they were members of the public. The certificate shall demonstrate and certify that the operator is insured against the risk of loss due to property damage and bodily injury caused to members of the public, including taxicab customers, in the amount of $50,000 for property damage, $100,000 per injury, $300,000 per occurrence, or $300,000, combined single limit, and shall further show the amount of the self-insured retention, if any, under said policy. The certificate shall provide for a 30-day written notification of policy cancellation, or if retention is greater than $5,000, the certified operator shall provide financial information to the satisfaction of the city which proves financial responsibility for the amount of the self-insured retention. The city shall have the option to require the operator to demonstrate to the city the policy itself referred to in the certificate, and on failure to do so within five days, to revoke the business license. (Ord. 2564 § 1, 1993; Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). 5.54.100 Fare rates. From and after May 6, 1980, upon which date the city council concluded a public hearing, and established maximum rates of fare for the hire of taxicabs within the city, the following rules shall apply for the establishment of rates of fare: A. Each certified operator shall file with the police chief the rate of fare that said operator shall charge for taxicab service. Each such certified operator shall set the taximeter for the rate said operator will charge, and prominently post rates on each side of the taxicab in block letters of not less than one inch in height and in a location where rates can be easily read by prospective passengers. B. If a certified operator desires to change the rate of fare on file in the office of the police chief, said operator shall file with the police chief the new rates, reset the meter, and post the revised rates on each side of the taxicab as provided in this section. C. It is unlawful for a certified operator to operate any taxicab in the city unless the vehicle is equipped with a taximeter designed to calculate fare upon the basis of a combination of mileage traveled and time elapsed. When operative with respect to fare indication, the fare-indicating mechanism shall be actuated by the mileage mechanism whenever the vehicle is in motion at such a speed that the rate of mileage revenue equals or exceeds the time rate, and may be actuated by the time mechanism whenever the vehicle speed is less than this and when the vehicle is not in motion. Means shall be provided for the vehicle operator to render the time mechanism either operative or inoperative with respect to the fare-indicating mechanism. Waiting time shall include all time when a taxicab occupied or engaged by a passenger is not in motion or is traveling at a speed which is slow enough for the time rate to exceed the mileage rate; waiting time will also include the time consumed while standing at the direction of the passenger or person who has engaged such taxicab. It shall be the duty of every permit holder operating a taxicab to keep such taximeter in such proper condition so that said taximeter will, at 2018-09-18 Agenda Packet Page 21 Chula Vista Municipal Code Chapter 5.54 TAXICABS* Page 8/11 The Chula Vista Municipal Code is current through Ordinance 3414, passed January 9, 2018. all times, correctly and accurately indicate the charge for the distance traveled and waiting time. The taximeter shall be at all times subject to inspection by any peace officer, and such peace officer is authorized at his instance or upon complaint of any person to investigate or cause to be investigated such taximeter, and upon discovery of any inaccuracy in said taximeter, or if the taximeter is unsealed, to remove or cause to be removed the vehicle equipped with such taximeter from the streets of the city, until the taximeter has been correctly adjusted and sealed before being returned to service. D. It is unlawful for any driver of a taxicab while carrying passengers to display the flag or device attached to the taximeter in such a position as to denote that the vehicle is for hire, or is not employed, or to have the flag or other attached device in such a position as to prevent the taximeter from operating, and it is unlawful for any driver to throw the flag into a position which causes the taximeter to record when the vehicle is not actually employed, or to fail to throw the flag or other device into a nonrecording position at the termination of each and every service. E. The taximeter shall be so placed in the taxicab that the reading dial showing the amount of fare to be charged shall be well lighted and readily discernible by the passenger riding in such taxicab. F. It is unlawful for any certified operator and/or driver of a taxicab to demand of a passenger a charge for hire greater than the current maximum rate approved by the city council or the rate which said certified operator shall have on file with the office of the police chief. G. There shall be displayed in the passenger compartment of each taxicab, well-lighted and readily discernible by the passenger, in a container of type and design approved by the police chief, a card showing the operator’s rates to be charged for hire of the vehicle. (Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). 5.54.110 Certificate – Cancelled when. After the service for which a certificate is granted under this chapter is discontinued, or if the person sells or discontinues his or its business, the certificate granted under this chapter shall be automatically cancelled and shall be reissued only in accordance with the provisions of this chapter. (Ord. 2003 § 2, 1982). 5.54.120 Certificate – Grounds for suspension or revocation. A. Certificates may be suspended or revoked by the police chief if: 1. The owner fails to operate the taxicab or taxicabs in accordance with the provisions of this chapter; 2. The taxicab or taxicabs are operated at a rate of fare other than that which the certified operator shall have on file with the police chief. B. The city manager or police chief may suspend or revoke a certificate where the owner’s past record involved violations of city, state or federal law or endangered the public safety. (Ord. 2718 § 1, 1998; Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). 2018-09-18 Agenda Packet Page 22 Chula Vista Municipal Code Chapter 5.54 TAXICABS* Page 9/11 The Chula Vista Municipal Code is current through Ordinance 3414, passed January 9, 2018. 5.54.130 Certificate – To be surrendered when. Certificates which shall have been suspended or revoked by the police chief shall be surrendered to the police chief and the operation of any taxicab or taxicabs covered by such certificates shall cease. Any owner who shall permanently retire any taxicab or taxicabs from taxicab service and not replace same within 30 days thereof shall immediately surrender any certificate or certificates granted for the operation of such taxicab or taxicabs to the police chief, and such owner may not secure additional certificates for the operation of any taxicab or taxicabs without having first made application therefor, in the manner provided in this chapter. (Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). 5.54.140 Route required. Any driver employed to transport passengers to a definite point shall take the most direct route possible that will carry the passenger to his destination safely and expeditiously. (Ord. 2003 § 2, 1982). 5.54.150 Receipts for passengers. Every driver shall give a correct receipt upon payment of the correct fare. (Ord. 2003 § 2, 1982). 5.54.160 Fare – Nonpayment deemed infraction when. It is unlawful for any person to refuse to pay the lawful fare of any of the vehicles regulated by this chapter, after employing or hiring the same, and any person who shall hire such vehicle with intent to defraud the person from whom it is hired shall be guilty of an infraction. (Ord. 2003 § 2, 1982). 5.54.170 Soliciting for patronage prohibited when. No driver of any taxicab shall seek employment by repeatedly and persistently driving his vehicle to and from, in a short space in front of, or by otherwise interfering with the proper and orderly access to, or egress from, any theater, hall, hotel, public resort, railway or ferry station, or other place of public gathering; or by leaving his vehicle, or otherwise approaching and soliciting patronage by pedestrians upon the sidewalk, in any theater, hall, hotel, public resort, railway or ferry station, or street railway loading point; but such driver may solicit employment by driving through any public street or place without stops, other than those due to obstruction of traffic, and at such speed as not to interfere with or impede traffic. No person shall solicit passengers for such vehicles except the driver thereof, when sitting upon the driver’s seat of his vehicle. (Ord. 2003 § 2, 1982). 5.54.180 Exceeding rated seating capacity prohibited. No driver of any taxicab shall accept, take into his vehicle or transport any larger number of passengers than the rated seating capacity of his vehicle. (Ord. 2003 § 2, 1982). 5.54.190 Parking prohibited where – Exceptions. It is unlawful for the owner, driver or operator of any taxicab to allow such taxicab to remain parked in the central traffic district, except in a regularly established taxicab stand; provided, however, that taxicabs may park in any available parking space when actually engaged in loading or unloading passengers; and provided further, that between the hours of 10:00 p.m. and 6:00 a.m. of the following day, taxicabs may stop, stand or park in any place where the parking of vehicles is otherwise permitted. (Ord. 2003 § 2, 1982). 2018-09-18 Agenda Packet Page 23 Chula Vista Municipal Code Chapter 5.54 TAXICABS* Page 10/11 The Chula Vista Municipal Code is current through Ordinance 3414, passed January 9, 2018. 5.54.200 Obedience to orders of police and firefighters required. The driver of any of the vehicles regulated by this chapter shall promptly obey all orders or instructions of any police officer or firefighters. (Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). 5.54.210 Drivers’ permits required. It is unlawful for any person to drive or operate any of the vehicles mentioned in CVMC 5.54.020 without first obtaining a taxicab driver’s identification card issued by the sheriff of the county. (Ord. 2003 § 2, 1982). 5.54.220030 Taxicab stands – Established – Designation. The council may by resolution locate and designate taxicab stands, which stands when so established shall be appropriately designated “Taxis Only.” (Ord. 2003 § 2, 1982). 5.54.230040 Taxicab stands – Unattended vehicles prohibited when. It is unlawful for any taxicab to remain standing in any established taxicab stand unless such cab is attended by a driver or operator, except when assisting passengers to load or unload, or when answering his telephone. (Ord. 2003 § 2, 1982). 5.54.240050 Taxicab stands – Hours of operation. Taxicab stands established hereunder shall be in operation 24 hours of every day. (Ord. 2003 § 2, 1982). 5.54.250 Certificate – Number to be displayed on vehicle. Each taxicab shall bear, at such places on the outside of such vehicle as shall be prescribed by the police chief, the number of the certificate granted for its operation and such designation shall be of the type and design as shall be prescribed by the police chief. (Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). 5.54.260 Color scheme restrictions. All taxicabs must be and conform to a color scheme approved by the police chief, who may refuse a certificate to every person whose color scheme, trade name or insignia imitates that of any permittee in such manner as to deceive the public. (Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). 5.54.270 Information cards – Display required where – Contents. Each taxicab licensed to operate in this city shall have located in a convenient place in the driver’s compartment and in view of the passenger thereof two containers of type and design approved by the police chief. Such containers shall contain cards provided by the police chief bearing the following information: A. One such container shall have a card therein bearing: 1. The permit number issued for each individual taxicab licensed to operate in the city; 2. The name of the company to whom it is issued; 3. The date of issuance; 4. The state license plate number and engine number of the taxicab displaying same. 2018-09-18 Agenda Packet Page 24 Chula Vista Municipal Code Chapter 5.54 TAXICABS* Page 11/11 The Chula Vista Municipal Code is current through Ordinance 3414, passed January 9, 2018. B. One such container shall have a card therein bearing: 1. The number of the city chauffeur’s license of the driver thereof; 2. The name and residence address of such driver; 3. The name of the company employing such driver; 4. A small photograph of such driver. (Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). 5.54.280 Violation – Penalty. A. Any person violating any of the provisions of this chapter shall be deemed guilty of an infraction, and upon conviction thereof, shall be punished by forfeiture of his permit, and by a fine as provided by this code. B. For the purpose of this chapter, it shall be considered that each day during which any provision of this chapter is violated shall constitute a separate and distinct offense. (Ord. 2003 § 2, 1982). 5.54.290 Appeals to city council. Any actions taken by the police chief under this chapter are appealable to the city manager pursuant to Chapter 1.40 CVMC. An appeal to the city manager must be filed with the city manager and appropriate appeal fees paid within 10 days of the action of the police chief. (Ord. 2718 § 1, 1998; Ord. 2408 § 1, 1990; Ord. 2003 § 2, 1982). 5.54.060 Regulatory administration by contract with Metropolitan Transit System The City Council, by resolution, has authorized a contract with San Diego Metropolitan Transit System (MTS) for the administration and enforcement by MTS of regulations, policies and ordinances for taxicabs and other for-hire vehicles operated within the city, including collection and administration of all applicable regulatory fees, fines and forfeitures. While that contract is in effect, the applicable regulations, policies and ordinances of MTS, including MTS Codified Ordinance No. 11, as now in effect or as may from time to time be amended, shall govern the operation of taxicabs and other for-hire vehicles within the city. License of a taxicab and other for-hire vehicles or the operator or owner by MTS does not exempt the licensee from city business tax license requirements and payment of fees pursuant to Title 5, Business Licenses, Taxes and Regulations, if the licensee is substantially located in Chula Vista, as defined by AB 1069. A copy of MTS Codified Ordinance No. 11 is on file with the office of the City Clerk and also may be viewed at the MTS website, www.sdmts.com. 2018-09-18 Agenda Packet Page 25 C:\Users\shereek\Desktop\pdf ord.doc ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA AMENDING CHULA VISTA MUNICIPAL CODE CHAPTER 5.54, REGULATING TAXICABS AND OTHER FOR-HIRE VEHICLES THROUGH ADOPTION OF SAN DIEGO METROPOLITAN TRANSIT SYSTEM CODIFIED ORDINANCE NO. 11 WHEREAS, the City of Chula Vista, through its Police Department, regulates taxi cab operators in the city by requiring a certificate to operate issued by the Chief of Police; and WHEREAS, with 27 taxicab companies and a total of 54 taxicabs licensed to operate in Chula Vista, the City collects $5,400 annually, based on a $150 fee for the first cab and a $25 fee for the second cab; and WHEREAS, Assembly Bill No. 1069, signed into law by California’s governor in 2017 and effective on January 1, 2019, requires cities to either create a Joint Powers Authority or enter into an agreement with a transit agency, such as the San Diego Metropolitan Transit System (MTS), to regulate taxicab companies and taxicab drivers; and WHEREAS, according to a legislative analysis, the goal of AB 1069 was to enable taxicab operators to operate under one set of statewide requirements, similar to other for-hire transportation companies, rather than a patchwork of local regulations; and WHEREAS, AB 1069 was supported by the taxi industry because it requires a single permit from a transit agency rather than multiple permits from cities, thereby reducing operating costs; and WHEREAS, as authorized by California Public Utilities Code Section 12066, the MTS for years has contracted with most cities in its service area, such as National City, Imperial Beach, San Diego, Lemon Grove, El Cajon, Santee and Poway, to provide full-service regulation of taxicabs and other for-hire transportation services; and WHEREAS, pursuant to MTS Codified Ordinance No. 11, regulation includes determining owner eligibility, inspecting vehicles, issuing permits, monitoring compliance with administrative and operational regulations and investigating passenger complaints; and WHEREAS, AB 1069 reserved rights of cities to regulate taxi stands in their jurisdictions and to require taxicab companies that are located in Chula Vista to obtain a business license. NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. SECOND READING AND ADOPTION 2018-09-18 Agenda Packet Page 26 Ordinance Page 2 Chapter 5.54 TAXICABS AND OTHER FOR-HIRE VEHICLES* Sections: 5.54.010 Purpose. 5.54.020 Definitions. 5.54.030 Taxicab stands – Established – Designation. 5.54.040 Taxicab stands – Unattended vehicles prohibited when. 5.54.050 Taxicab stands – Hours of operation. 5.54.060 Regulatory administration by contract with Metropolitan Transit System * For statutory provisions for local regulation of vehicles for hire, see Veh. Code § 16501; for provisions for carriers generally, see Civil Code § 2065, et seq., and Public Util. Code § 200, et seq.; for provisions for financial responsibility of taxicab companies, see Veh. Code § 16500, et seq. Prior ordinance history: Prior code §§ 31.5, 31.17 – 31.28, 31.38 – 31.44 and Ords. 1911 and 1881. 5.54.010 Purpose. The purpose of this chapter is to provide for the regulation of taxicabs and other for-hire vehicles within the city of Chula Vista through adoption of San Diego Metropolitan Transit System (MTS) Codified Ordinance No. 11, and to implement the provisions of California Public Utilities Code Section 12066 by contract with MTS to license and regulate for-hire transportation services within the city. 5.54.020 Definitions. The definitions set forth in Section 1.1 of San Diego Metropolitan Transit System Codified Ordinance No. 11 shall govern this chapter. 5.54.030 Taxicab stands – Established – Designation. The council may by resolution locate and designate taxicab stands, which stands when so established shall be appropriately designated “Taxis Only.” (Ord. 2003 § 2, 1982). 5.54.040 Taxicab stands – Unattended vehicles prohibited when. It is unlawful for any taxicab to remain standing in any established taxicab stand unless such cab is attended by a driver or operator, except when assisting passengers to load or unload, or when answering his telephone. (Ord. 2003 § 2, 1982). 5.54.050 Taxicab stands – Hours of operation. Taxicab stands established hereunder shall be in operation 24 hours of every day. (Ord. 2003 § 2, 1982). 5.54.060 Regulatory administration by contract with Metropolitan Transit System The City Council, by resolution, has authorized a contract with San Diego Metropolitan Transit System (MTS) for the administration and enforcement by MTS of regulations, policies and SECOND READING AND ADOPTION 2018-09-18 Agenda Packet Page 27 Ordinance Page 3 ordinances for taxicabs and other for-hire vehicles operated within the city, including collection and administration of all applicable regulatory fees, fines and forfeitures. While that contract is in effect, the applicable regulations, policies and ordinances of MTS, including MTS Codified Ordinance No. 11, as now in effect or as may from time to time be amended, shall govern the operation of taxicabs and other for-hire vehicles within the city. License of a taxicab and other for-hire vehicles or the operator or owner by MTS does not exempt the licensee from city business tax license requirements and payment of fees pursuant to Title 5, Business Licenses, Taxes and Regulations, if the licensee is substantially located in Chula Vista, as defined by AB 1069. A copy of MTS Codified Ordinance No. 11 is on file with the office of the City Clerk and also may be viewed at the MTS website, www.sdmts.com. Section II. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section III. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by _____________________________________ ____________________________________ Roxana Kennedy Glen R. Googins Chief of Police City Attorney SECOND READING AND ADOPTION 2018-09-18 Agenda Packet Page 28 2018 MTS TAXICAB ADMINISTRATION FACT SHEET RESPONSIBILITY The Metropolitan Transit System (MTS) Taxicab Administration has contractual agreements through June 30, 2019, to license and regulate taxicab, jitney, charter, sightseeing, low speed vehicles, and nonemergency medical vehicles within the cities of El Cajon, Imperial Beach, La Mesa, Lemon Grove, Poway, San Diego, Santee, Chula Vista and National City. Responsibilities include determining owner eligibility; inspecting vehicles; issuing permits; monitoring compliance with administrative and operational regulations; and investigating passenger complaints. STAFFING The Taxicab Administration staff includes one Manager, one Supervisor, three Regulatory Analysts, five Regulatory Inspectors, and one Administrative Assistant. FEES Under California State Public Utilities Code Section 120266, taxicab regulatory activities administered by MTS must generate full cost recovery. The following fees have been adopted by the Chief Executive Officer to fund the program. Permit Application All except one-year transferable taxicab $1,500 (Plus $ 200 for each vehicle in excess of one) One-year transferable taxicab $875 (Plus $200 for each permit in excess of one) Transfer clearance $200 per permit (one-year transferable taxicab) Regulatory Fee 2018 fee per vehicle is $600 Taxicab or Jitney stop $250 installation fee; subject to City of San Diego and the Unified Port District approval (when on Unified Port District property) INSPECTIONS Vehicle inspections are performed by certified staff mechanics. These inspections are done as part of the Taxicab Administration’s responsibilities to ensure passengers have a comfortable trip in a safe and clean vehicle. Vehicles Vehicles are inspected for body condition and mechanical condition, such as suspension, steering, shocks, exhaust, tires, brakes, and electrical items; proper registration; interior and exterior cleanliness; proper markings; and meter requirements. Drivers Drivers shall be hygienically clean, well-groomed, neat and suitably dressed. TAXICABS Fleet Fleet size will vary depending on the number of approved applications. Fares (general) Rates may vary from company to company up to a fixed amount set by MTS: Fares Maximum Flag Drop: $3.40 Per Mile: $3.60 Per Hour: $29.00 (Int’l A’port) MTS sets uniform rates for all taxicab trips from the San Diego International Airport: Flag Drop: $2.80 Per Mile: $3.00 Per Hour: $24.00 Currently, an additional fee of $2.90 per trip may be charged through the taxi meter on trips from the airport only. Service Passengers may telephone reservations for a taxicab. All taxicabs must be equipped with a two-way radio or electronic dispatch equipment, and subscribe to a dispatch service. Passengers may also hail taxicabs on the street or at any taxicab stand. Obtaining a receipt enables the passenger to trace lost items if necessary. JITNEYS Fleet Eight ji tneys among six owners. Fares Charged per person, per route. Must be posted prominently outside and inside each vehicle. CHARTER VEHICLES Fleet 84 vehicles among nine owners. Fares Vary, and service is by a prearranged written contract paid on a per-mile basis. NONEMERGENCY Fleet 278 vehicles among 37 owners. MEDICAL Fares Exclusive Ride - established on a per capita plus per-mile basis. Shared Ride - on a per capita plus per-mile basis, or on a per capita plus per-zone basis. LOW SPEED Fleet MTS Taxicab Administration implemented a new LSV service in 2004. Up to 35 LSV permits may be VEHICLES (LSV) issued for operation within the downtown Civic San Diego and San Ysidro border areas. These vehicles are permitted to wait at designated stands, accept street hails, and operate on a prearranged basis. 2018-09-18 Agenda Packet Page 29 SPECIAL Airport Service This service varies from taxicabs and charters with each using a separate boarding area. Access to PROGRAMS the airport and passenger boarding procedures are determined by the San Diego County Regional Airport Authority (also see Fares). CONSUMER COMMENTS Comments and questions are welcome. 24-hour recording is available at 619.235.2650, posted in each vehicle and at each taxicab stand. ADVISORY COMMITTEE The MTS Board of Directors established a Taxicab Advisory Committee in September 1994. FUNCTION The Committee's purpose is to provide feedback on taxicab matters destined for Board action; review summaries of administrative hearing officer decisions concerning taxicab owner and driver penalties; resolve taxicab owners’ written grievances; review summaries of complaints concerning taxicab service; review vehicle inspection criteria, process, results, and rankings; review the annual fee schedule; comment on the MT S work program concerning taxicab matters; and approve both airport and non-airport taxicab rates of fare. MEETINGS The Committee meets four times a year, and is open to the public. MEMBERSHIP The Committee has 17 memb ers. One representative of the MTS Board of Directors, appointed annually by the Board, will be designated to serve as Chair of the Taxicab Advisory Committee. The San Diego Tourism Authority, San Diego County Regional Airport Authority (SDCRAA), San Diego Convention Center, and San Diego Travelers Aid Society each appoint one representati ve, and two members are appointed from the hotel-motel industry. Currently, the taxicab owners elect five owners to represent them, and the taxicab lease drivers elect five drivers to represent lease drivers. A representative from the San Diego County Sheriff’s Licensing Division and a representative from the San Diego County Department of Agriculture, Weights and Measures also attend in a nonvoting capacity. Each member serves a three-year term. Current Taxicab Advisory Committee members are: Lorie Zapf, Chair City of San Diego Councilmember George Abraham Eritrean Cab, Inc. Vacant Lease Driver Representative and MTS Board Member Owner 4 or more Alfred Banks Marc Nichols San Diego County Regional Airport Authority Antonio Hueso USA Cab LTD Owner 4 or more Lease Driver Representative David Tasem Daryl Mayekawa Medhanie Weldegiorgis Lease Driver Representative San Diego Convention Center “A” Transportation, LLC Able Seifu Anthony Palmeri Owner 4 or more Lease Driver Representative San Diego Travelers Aid Society Akbar Majid Margo Tanguay Ryan Chasteen SDYC Holdings, LLC Owner 3 or fewer Lease Driver Representative Marriott Marquis San Diego Marina Nasser Tehrani Namara M ercer N.A.T. Cab Co. San Diego County Hotel-Motel Association Owner 3 or fewer Edna Rains Marco Mares Brian Hilemon San Diego County Sheriff’s San Diego County Department San Diego Tourism Authority Department Licensing Division Nonvoting Member of Agriculture, W eights & Measures Nonvoting Member TAXICAB DISPATCH SERVICES AIRPORT DISPATCH Dispatch: 619.946.8294 SAN DIEGO DISPATCH Dispatch: 619.226.8294 YELLOW RADIO SERVICE Dispatch: 619.444.4444 or 858.444.4444 AMERICAN RADIO SERVICE Dispatch: 619.234.1111 SILVER RADIO SERVICE Dispatch: 619.280.5555 ICON RADIO SERVICE Dispatch: 619.225.6230 TAXI RADIO SERVICE Dispatch: 619.231.0400 ORANGE RADIO SERVICE Dispatch: 619.223.5555 UNITED DISPATCH Dispatch: 619.280.4444 RED TOP RADIO SERVICE Dispatch: 619.531.1111 USA RADIO DISPATCH Dispatch: 619.231.1144 CONTACT MTS Taxicab Administration, 1501 National Avenue, Suite 100, San Diego, CA 92113 Phone: 619.595.3086 Fax: 619.814.1533 For customer feedback please call , 619.235.2650. TAXICAB FACT SHEET_Rev0718 2018-09-18 Agenda Packet Page 30 SAN DIEGO METROPOLITAN TRANSIT SYSTEM CODIFIED ORDINANCE NO. 11 (as amended through December 14, 2017) An Ordinance Providing for the Licensing and the Regulating of Transportation Services Within the City by the Adoption of a Uniform Paratransit Ordinance 2018-09-18 Agenda Packet Page 31 i MTS CODIFIED ORDINANCE NO. 11 TABLE OF CONTENTS Description Page No. SECTION 1.0 - GENERAL REGULATIONS ........................................................................................... 1 Section 1.1 - Definitions .......................................................................................................................... 1 Section 1.2 - Operating Permits .............................................................................................................. 4 Section 1.3 - Application for Permit ......................................................................................................... 5 Section 1.4 - Issuance of Permit ............................................................................................................. 6 Section 1.5 - Transfer and Administration of Permits .............................................................................. 7 Section 1.6 - Blank ................................................................................................................................. 8 Section 1.7 - Blank ................................................................................................................................. 8 Section 1.8 - Equipment and Operating Regulations .............................................................................. 8 Section 1.9 - Public Liability .................................................................................................................. 14 Section 1.10 - Financial Ownership and Operating Records: Reporting Requirements ........................ 14 Section 1.11 - Destruction, Permanent Replacement or Retirement of For-Hire Vehicles ..................... 16 Section 1.12 - Driver's Identification Cards ........................................................................................... 17 Section 1.13 - Suspension and Revocation of Permit ........................................................................... 19 Section 1.14 - Suspension and Revocation of Driver's Identification Cards .......................................... 21 Section 1.15 - Surrender of Medallion .................................................................................................. 22 Section 1.16 - Right of Administrative Appeal from Denial, Suspension or Revocation of Permit or...... 22 Driver's Identification Card or Related Adverse Action .......................................................................... 22 Section 1.17 - Procedure Upon Administrative Appeal ......................................................................... 22 Section 1.18 - Exceptions to Provisions ................................................................................................ 23 Section 1.19 - Chief Executive Officer's Authority to Adopt Rules and Promulgate a Schedule of Fines ............................................................................................................................................................. 24 Section 1.20 - Americans with Disabilities Act ...................................................................................... 24 SECTION 2.0 - TAXICABS AND/OR LSVs ........................................................................................... 24 Section 2.1 - Types of Service .............................................................................................................. 24 Section 2.2 - Rates of Fare ................................................................................................................... 24 Section 2.3 - Equipment and Specifications .......................................................................................... 26 Section 2.4 - Operating Regulations ..................................................................................................... 29 Section 2.5 - Stands ............................................................................................................................. 32 Section 2.6 - Dispatch Services ............................................................................................................ 32 Section 2.7 - Driver Safety Requirements ............................................................................................. 33 SECTION 3.0 - CHARTER VEHICLES ................................................................................................. 34 Section 3.1 - Rates of Fare ................................................................................................................... 34 Section 3.2 - Operating Regulations ..................................................................................................... 34 2018-09-18 Agenda Packet Page 32 ii SECTION 4.0 - SIGHTSEEING VEHICLES .......................................................................................... 34 Section 4.1 - Rates of Fare ................................................................................................................... 34 Section 4.2 - Operating Regulations ..................................................................................................... 35 SECTION 5.0 - NONEMERGENCY MEDICAL VEHICLES................................................................... 35 Section 5.1 - Rates of Fare ................................................................................................................... 35 Section 5.2 - Operating and Equipment Regulations ............................................................................ 35 Section 5.3 - Driver Identification Cards ............................................................................................... 36 SECTION 6.0 - JITNEY VEHICLES ...................................................................................................... 36 Section 6.1 - Rates of Fare ................................................................................................................... 36 Section 6.2 - Jitney Routes ................................................................................................................... 36 Section 6.3 – Operating Regulations .................................................................................................... 37 Section 6.4 - Jitney Holding Zones ....................................................................................................... 38 Section 6.5 - Equipment and Specifications .......................................................................................... 39 SECTION 7.0 – LOW-SPEED VEHICLES ............................................................................................ 39 Section 7.1 – Low-Speed Vehicle (LSV) Definition ............................................................................... 39 Section 7.2 – Establishment of Zones .................................................................................................. 39 Section 7.3 – Zone Rates of Fare ......................................................................................................... 39 Section 7.4 – Spare Vehicle Policy ....................................................................................................... 40 Section 7.5 – LSV Driver Identification Cards ....................................................................................... 41 Section 7.6 - Equipment and Specifications .......................................................................................... 41 SECTION 8 - EFFECTIVE DATE OF ORDINANCE ............................................................................. 42 2018-09-18 Agenda Packet Page 33 -1- SAN DIEGO METROPOLITAN TRANSIT SYSTEM CODIFIED ORDINANCE NO. 11 (as amended through December 14, 2017) An Ordinance Providing for the Licensing and the Regulating of Transportation Services Within the City By the Adoption of a Uniform Paratransit Ordinance SECTION 1.0 - GENERAL REGULATIONS Section 1.1 - Definitions The following words and phrases, wherever used in this section, shall be construed as defined in this section, unless from the context a different meaning is intended, or unless a different meaning is specifically defined and more particularly directed to the use of such words or phrases. (a) "Association" shall mean an incorporated or unincorporated group of persons united for some purpose related to the operation of for-hire vehicles. (b) "Board" shall mean the Board of Directors of the San Diego Metropolitan Transit System. (c) A "low-speed vehicle" is a motor vehicle, other than a motor truck, having four wheels on the ground and an unladen weight of 1,800 pounds or less, that is capable of propelling itself at a minimum speed of 20 miles per hour and a maximum speed of 25 miles per hour, on a paved level surface. For the purposes of this section, a "low-speed vehicle" is not a golf cart, except when operated pursuant to California Vehicle Code Section 21115 or 21115.1. (d) "Charter vehicle" shall mean every vehicle which: (1) Transports passengers or parcels or both over the public streets of the City; (2) Is routed at the direction of the hiring passenger; (3) Is prearranged in writing for hire; (4) Is not made available through "cruising"; and (5) Is hired by and at the service of a person for the benefit of himself or herself or a specified group. (e) "City" and "Cities" shall mean the incorporated areas of the Cities of El Cajon, Imperial Beach, La Mesa, Lemon Grove, National City, Poway, San Diego, Santee and any other City that has entered into a contractual agreement with MTS for the licensing and regulation of transportation services. (f) "Compensation" shall mean any money, thing of value, payment, consideration, reward, tip, donation, gratuity or profit paid to, accepted, or received by the driver or owner of any vehicle in exchange for transportation of a person, or persons; whether paid upon solicitation, demand or contract, or voluntarily, or intended as a gratuity or donation. (g) "Cruising" shall mean the movement over the public streets of a taxicab or low-speed vehicle (LSV) in search of prospective passengers; except the term does not include either the 2018-09-18 Agenda Packet Page 34 -2- travel of a taxicab or LSV proceeding to answer a call for service received by telephone or radio from an intended passenger or the travel of such a vehicle, having discharged a passenger or passengers, returning to the owner's place of business or to its established point of departure. (h) "Days" shall mean working days, exclusive of weekends and holidays for which MTS offices are closed. (i) "Doing business" shall mean accepting, soliciting or transporting passengers for hire or compensation in a City. (j) "Driver" shall mean every person operating any for-hire vehicle. (k) "Driver's identification card" shall mean license, issued pursuant to this Ordinance, which permits a person to drive a for-hire vehicle within the City. (l) "Employ" as used in this Ordinance includes any form of agreement or contract under which the driver may operate the permit holder's for-hire vehicle. (m) "Exclusive ride" shall mean exclusive use of a for-hire vehicle by one or more related passengers at a time. (n) "For-hire vehicle" shall mean every vehicle, other than public transit vehicles or vehicles involved in an organized carpool not available to the general public, which is operated for any fare for compensation and used for the transportation of passengers over city public streets, irrespective of whether such operations extend beyond the boundary limits of said City. Such for- hire vehicles shall include taxicabs, vehicles for charter, jitneys, nonemergency medical vehicles, sightseeing vehicles, and LSVs. (o) "Chief Executive Officer" shall mean the Chief Executive Officer of MTS or his or her designated representative. (p) "Group ride" shall mean shared use of a taxicab or LSV where a group of related passengers enter at the same point of origin and disembark at the same destination and pay a single fare for the trip. (q) “Hearing officer” shall mean any person or entity that meets the requirements of this Ordinance and that has been retained to conduct administrative hearings. (r) "Jitney" shall mean every vehicle which: (1) Transports passengers or parcels or both over the public streets of the City; (2) Follows a fixed route of travel between specified points with the fare based on a per capita charge established in its permit; and (3) Is made available to boarding passengers at specified locations along its route on a variable schedule. (s) "Medallion" shall mean the numbered plate, sticker, or decal issued by MTS to the permit holder which is displayed on a for-hire vehicle to indicate the authorized use or uses of that vehicle. 2018-09-18 Agenda Packet Page 35 -3- (t) "MTS" shall mean the San Diego Metropolitan Transit System, a public agency created pursuant to Public Utilities Code Section 120050 et seq. (u) "MTS inspector" shall mean those individuals, regardless of job title, who are authorized by the Board, by ordinance, to enforce the provisions of this Ordinance. (v) "Nonemergency medical vehicle" shall mean every vehicle which: transports persons, regardless of whether specialized transportation equipment or assistance is needed, for primarily medical purposes, over the public streets of the City. Medical purposes is defined as providing transportation services to or from the following places: hospitals, convalescent homes, retirement homes, homes receiving funding for the board and care of residents living in those homes, medical or rehabilitation clinics, senior citizen centers, and any other like social service category, over the public streets of the City. It shall be the responsibility of the transportation provider to determine if the service is primarily for medical purposes. (w) "Operate" or "Operating" shall refer to the solicitation or acceptance of a fare within City limits for compensation or providing passenger transportation for compensation, regardless if such compensation is obtained from the passenger or a third party. It shall also include, as the context may require, the act of driving, managing or directing the utilization of one or more for-hire vehicles. (x) "Owner" shall mean the person, partnership, association, firm or corporation that is the registered owner of any for-hire vehicle and that holds the right to use the vehicle for its advantage. (y) "Passenger" shall mean every occupant other than the driver of the for-hire vehicle. (z) "Permit" shall mean the authority under which a person, firm, partnership, association, or corporation may operate a for-hire vehicle as a business. (aa) "Permit holder" shall mean any person or approved entity operating a business under a for-hire vehicle permit. (bb) "Shared ride" shall mean nonexclusive use of a for-hire vehicle by two or more unrelated passengers traveling between different points of origins and/or destination, and traveling in the same general direction. (cc) "Shifts" shall mean the minimum number of hours a permit holder or driver operates a for-hire vehicle. (dd) "Sightseeing vehicle" shall mean every vehicle which: (1) Transports passengers for sightseeing purposes of showing points of interest over the public streets of the City; and (2) Charges a fee or compensation therefor; regardless of whether any fee or compensation is paid to the driver of such sightseeing vehicle, either by the passenger or by the owner or by the person who employs the driver or contracts with the driver or hires such sightseeing vehicle with a driver to transport or convey any passenger; and irrespective of whether or not such driver receives any fee or compensation for his or her services as driver. (ee) "Stands" shall mean public areas designated for specific use of for-hire vehicles. 2018-09-18 Agenda Packet Page 36 -4- (ff) "Street" shall mean any place commonly used for the purpose of public travel. (gg) "Taxicab" shall mean every vehicle other than a vehicle-for-charter, a jitney, a nonemergency medical vehicle, a sightseeing vehicle, or LSV which: (1) Transports passengers or parcels or both over city public streets. (2) Is made available for hire on call or demand through "cruising," at taxi stands or by telephone to destination(s) specified by the hiring passenger. (hh) "Taximeter" shall mean any instrument, appliance, device, or machine by which the charge for hire of a passenger-carrying vehicle is calculated, either for distance traveled or time consumed, or a combination of both, and upon which such charge is indicated by figures. (ii) "Vehicle" is a device by which any person or property may be propelled, moved, or drawn upon a street, excepting a device moved exclusively by human power or used exclusively upon stationary rails or tracks. (Section 1.1 amended 12/14/2017) (Section 1.1 amended 5/12/2016) (Section 1.1 amended 8/7/2003) (Section 1.1 amended 11/14/2002) (Section 1.1 amended 6/24/1999) (Sections 1.1(d), 1.1(R)(1) amended 6/22/1995) (Section 1.1 amended 1/12/1995) (Section 1.1 amended 6/27/1991; effective 7/27/1991) (Section 1.1 amended 5/23/1991; effective 6/23/1991) Section 1.2 - Operating Permits (a) No person shall engage in the business of operating any for-hire vehicle or in the business of providing any vehicle for the operation of vehicle for-hire services within the cities without first having obtained an operating permit from the Chief Executive Officer or designated representative, which permit has not been revoked, suspended or otherwise canceled or terminated by operation of law or otherwise. A separate permit is required for each for-hire vehicle operated or provided for operation. (b) An operating permit represents the granting of a privilege to operate a for-hire vehicle within the cities or zones specified by the permit for the purpose of the public convenience and necessity. This privilege may be rescinded at any time by operation of law or otherwise. (c) A person who obtains an operating permit shall be responsible for the provision of vehicle-for-hire services in accordance with the provisions of this Ordinance and shall exercise due diligence to assure that drivers of the permitted vehicles adhere to all pertinent requirements of this ordinance. (Section 1.2 amended 12/14/2017) (Section 1.2 amended 8/7/2003) (Section 1.2 amended 11/14/2002) (Section 1.2 amended 6/24/1999) 2018-09-18 Agenda Packet Page 37 -5- Section 1.3 - Application for Permit (a) All persons applying to the Chief Executive Officer for new permit(s) for the operation of one or more for-hire vehicles shall file with the Chief Executive Officer a proposal to meet San Diego City Council Policy 500-02 requirements, and a sworn application therefore on forms provided by the Chief Executive Officer, stating as follows: (1) The applicant name, company name (doing business as, mailing and business address (a business address or mailing address is not a Post Office [PO] Box or dispatch service address), and telephone number of the permit applicant; (2) The number of permitted vehicles actually owned and operated by such owner on the date of application, if any; (3) The name and address of all legal and registered owner(s) of the vehicle(s); (4) The name and address of each person with a financial interest in the business which operates the vehicle; (5) Data sufficient to establish the applicant’s financial responsibility; (6) The number of vehicle(s) for which a permit(s) is desired; (7) Proof that vehicle(s) meet California Air Resources Board criteria for zero emissions/low emissions, are ADA-compliant, are no older than 10 years of the model age and do not have a “salvage” title, and are equipped with a Global Positioning System (GPS). (8) The rates of fare which the applicant proposes to charge for vehicle-for-hire services; (9) A description of the proposed color scheme, insignia, trade style, or any other distinguishing characteristics of the proposed vehicle design; (10) Where the application is for a limited permit or LSV, a detailed description of the geographic area in which said permit shall be in existence; and (11) Such other information as the Chief Executive Officer may in his or her discretion require. (12) Provide evidence of at least six-months’ experience driving a taxicab, transportation network vehicle, charter party carrier services, or similar service oriented transportation or managing a demand responsive transportation service, or similar service oriented business. (13) Provide a customer service and a customer complaint plan. (14) Provide a plan for administrative functions, vehicle maintenance, and off- street storage for vehicle when not in use. (15) Provide a dispatch service plan incorporating 24 hour staffing and computerized dispatch utilizing GPS technology. 2018-09-18 Agenda Packet Page 38 -6- (b) The applicant shall also submit, with the application, a nonrefundable application fee prior to the permit approval. Upon issuance of the permit, the applicant shall also pay an initial nonrefundable permit vehicle regulatory fee to be determined by the Chief Executive Officer in order to recover the cost of processing such applications. (Section 1.3 amended 12/14/2017) (Section 1.3 amended 2/12/2015) (Section 1.3 amended 11/15/2012) (Section 1.3 amended 8/7/2003) (Section 1.3 amended 11/14/2002) Section 1.4 - Issuance of Permit (a) Based on San Diego City Council Policy 500-02 requirements, the Chief Executive Officer shall determine the number of permits to be granted any applicant(s) and approve permits for any applicant(s) subject to such conditions as the Board and San Diego City Council Policy 500- 02 may deem advisable or necessary in the public interest. Before a permit may be approved, the applicant shall pay an initial regulatory fee in an amount to be determined by the Chief Executive Officer. (b) The Chief Executive Officer shall deny the approval of a permit upon making a finding: (1) That the applicant is under twenty-one (21) years of age; or (2) That within the five (5) years immediately preceding the processing of the application, the applicant has been convicted of, or held by any final administrative determination to have been in violation of any statute, ordinance, or regulation reasonably and rationally pertaining to the same or similar business operation which would have resulted in suspension or revocation of the permit in accordance with Section 1.13 of this Ordinance. For purposes of this section, a plea or verdict of guilty, a finding of guilty by a court, a plea of nolo contendere or a forfeiture of bail shall be deemed a conviction; or (3) That the applicant provided false information of a material fact in an application within the past five (5) years. (c) All permits issued after April 1, 2015 shall be renewable annually upon evidence San Diego City Council Policy 500-02 requirements are being met, and payment of a regulatory fee in an amount and on a date to be determined by the Chief Executive Officer. (d) No permit issued after April 1, 2015 shall be approved or renewed for any person who has not fully complied with all of the requirements of this Ordinance, San Diego City Council Policy 500-02, and all other applicable laws and/or regulations necessary to be complied with before commencement of the operation of the proposed service. (e) Permits held prior to April 1, 2015 by corporations and LLCs shall meet all of the screening criteria included in San Diego City Council Policy 500-02 by February 12, 2020. However, upon issuance of any new permits to said corporation or LLC, or upon the transfer of a permit to said corporation or LLC, the corporation or LLC shall need to be in compliance with requirements of this Ordinance and San Diego City Council Policy 500-02 for the new permit(s). (f) When the permit has been approved and upon determination by the Chief Executive Officer that the for-hire vehicle, after appropriate inspection, meets the requirements of this 2018-09-18 Agenda Packet Page 39 -7- Ordinance, the Chief Executive Officer will issue a numbered medallion(s) to be affixed to the for- hire vehicle. (Section 1.4 amended 12/14/2017) (Section 1.4 amended 2/12/2015) (Section 1.4 amended 11/15/2012) (Section 1.4 amended 11/14/2002) Section 1.5 - Transfer and Administration of Permits (a) Each permit issued pursuant to the provisions of this section is separate and distinct and shall be transferable from the permit holder to another person or entity only with the approval of the Chief Executive Officer, and upon meeting the requirements of this Ordinance and San Diego City Council Policy 500-02 including, but not limited to: (1) Provide evidence of at least six-months’ experience driving a taxicab, transportation network vehicle, charter party carrier services, or similar service oriented transportation or managing a demand responsive transportation service, or similar service oriented business. (2) Vehicle(s) must meet California Air Resources Board criteria for zero emissions/low emissions, be ADA-compliant, be equipped with a Global Positioning System (GPS), be no older than 10 years of the model age and not have a “salvage” title. (3) Provide a customer service plan that demonstrates, a requirement for drivers to accept credit cards, detailed record keeping of all calls for service, trips provided, and a customer service complaint resolution plan. (4) Provide a plan for administrative functions, vehicle maintenance, and off- street storage for vehicle when not in use. (5) Provide a Dispatch service plan incorporating 24 hour staffing and computerized dispatch utilizing GPS technology. (b) Permits held prior to April 1, 2015 shall be in compliance with San Diego City Council Policy 500-02 Screening Criteria by February 12, 2020. Whenever a corporation or LLC is issued any new permits, then it shall be in compliance with requirements of this Ordinance and San Diego City Council Policy 500-02. (c) The proposed transferee shall file with the Chief Executive Officer a sworn application for the transfer and shall comply with the requirements of Section 1.3. The permit holder shall certify in writing that the permit holder has notified the proposed transferee of the requirements of this section pertaining to the transfer of a permit. Whenever an application for a transfer of permit is filed, the Chief Executive Officer shall process the application for transfer in accordance with Section 1.4 of this Ordinance. (d) The Chief Executive Officer shall charge regulatory fees to affect the full cost recovery of activities associated with the administration, regulation, issuance, or transfer of for-hire vehicle permits and associated records. (1) Changes in fee schedules affecting permits shall be mailed to all permit holders. Changes shall be effective thirty (30) calendar days thereafter. 2018-09-18 Agenda Packet Page 40 -8- (2) Any person objecting to a particular fee or charge may file, within ten (10) days of the mailing of such changes, an appeal for review with the Chief Executive Officer who shall thereafter process it in accordance with Section 1.17; provided, however, that the sole issue to be determined on review is whether the fee or charge exceeds the reasonable costs for personnel salaries and administrative overhead associated with the particular administrative service or function. (Section 1.5 amended 12/14/2017) (Section 1.5 amended 2/12/2015) (Section 1.5 amended 8/7/2003) (Section 1.5 amended 11/14/2002) Section 1.6 - Blank The text of Section 1.6 is deleted in its entirety effective February 12, 2015. (Section 1.6 deleted 2/12/2015) (Section 1.6 amended 11/14/2002) Section 1.7 - Blank The text of Section 1.7 is deleted in its entirety effective October 24, 1998. (Section 1.7 was deleted 9/24/1998) Section 1.8 - Equipment and Operating Regulations (a) No medallion shall be issued for a vehicle unless the vehicle conforms to all the applicable provisions of this Ordinance. (b) The privilege of engaging in the business of operating a for-hire vehicle in a City granted in the permit is personal to the permit holder, who must be the owner of the for-hire vehicle. The rights, requirements, and responsibilities which attach to the permit remain with the holder at all times the for-hire vehicle is operated under the authority of the permit. These rights, requirements and responsibilities, which include, but are not limited to, the requirements of this Ordinance, will remain unaffected by any agreement or contractual arrangement between the permit holder and those persons who operate for-hire vehicles, irrespective of the form or characterization of the agreement under which the driver operates the for-hire vehicle. (c) The permit holder shall maintain a business address, a mailing address where he or she can accept mail directed to his or her company, and a business telephone in working order which must be answered during normal business hours, Monday through Friday, and during all hours of operation. A post office box or dispatch service address shall not be used for the business address or mailing address. The permit holder shall, in the case of any change in his or her business address, mailing address, or business telephone, notify the Chief Executive Officer in writing of such change within forty-eight (48) hours of the effective date of this change. (d) Before a for-hire vehicle is placed in service and at least annually thereafter, the for- hire vehicle shall be delivered to a place designated by the Chief Executive Officer for inspection. All new permit holders are required to observe at least one full vehicle inspection as part of the initial permit issuance. MTS inspectors shall inspect the for-hire vehicle and its equipment to ascertain whether the vehicle complies with the provisions of this Ordinance. Failure to produce the vehicle for inspection shall be cause for suspension or revocation of the permit for such vehicle. 2018-09-18 Agenda Packet Page 41 -9- (e) Any MTS inspector or peace officer, after displaying proper identification, may make reasonable and periodic inspections of any for-hire vehicle operating under an MTS permit for the purpose of determining whether the vehicle is in compliance with the provisions of this Ordinance. (f) Any for-hire vehicle which fails to meet the requirements of the California Vehicle Code or this section after inspection shall be immediately ordered out-of-service by an MTS inspector or peace officer if it is unsafe for service. Ordering a vehicle out-of-service does not constitute a suspension or revocation of the permit. A vehicle is deemed unsafe for service when any of the following conditions exists: (1) Tires fail to meet the requirements of the California Vehicle Code; (2) Headlights, taillights or signal lights are inoperable during hours of darkness (sunset to sunrise); (3) Windshield wipers are inoperable during rain conditions; (4) Meter is not working, the meter displays signs of tampering, the seal is broken, the County of San Diego seal is more than thirteen (13) months old from the date of issuance, or a Service Agent’s temporary seal is more than ninety (90) days old from the date of issuance; (5) Brakes, brake lights or brake system are inoperable or otherwise fail to meet the requirements of the California Vehicle Code; (6) Excessive play in steering wheel exceeding three (3) inches; (7) Windshield glass contains cracks or chips that interfere with driver's vision; (8) Any door latch is inoperable from either the interior or exterior of the vehicle; (9) Any seat is not securely fastened to the floor; (10) Seat belts, when required, fail to meet requirements of the California Vehicle Code; (11) Either side or rearview mirrors are missing or defective; (12) Any vehicle safety system light is activated; and (13) Any other condition which reasonably and rationally pertains to the operating safety of the vehicle or to passenger or pedestrian safety. (g) If the vehicle is not unsafe but is unsuitable or otherwise in violation of this Ordinance or any vehicle condition/equipment section of the California Vehicle Code, the operator or permit holder, as appropriate, shall be subject to a seventy-two (72) hours correction notice. (1) Failure to correct such violation within the seventy-two (72) hours shall then be cause to order the vehicle out-of-service. When a vehicle is ordered out-of-service, the medallion shall be immediately removed. 2018-09-18 Agenda Packet Page 42 -10- (2) Before the vehicle may again be placed in service, the violation shall be corrected and the vehicle shall be inspected by an MTS inspector. (3) The medallion shall be reaffixed when the MTS inspector finds that the vehicle meets prescribed standards. (h) The interior and exterior of the for-hire vehicle shall be maintained in a safe and efficient operating condition, and meet California Vehicle Code requirements and the requirements of this Ordinance at all times when in operation. The following minimum vehicle standards must be maintained to comply with this section: (1) Wheels. Hubcaps or wheel covers shall be on all wheels for which hubcaps or wheel covers are standard equipment. (2) Body Condition. There shall be no tears or rust holes in the vehicle body and no loose pieces hanging from the vehicle body. Fenders, bumpers, and light trim shall be securely fixed to the vehicle. No extensive unrepaired body damage shall be allowed and exterior paint shall be free from excessive fading. The vehicle shall be equipped with front and rear bumpers. The exterior of the vehicle shall be maintained in a reasonably clean condition so as not to obscure approved vehicle markings. (3) Lights. Headlights shall be operable on both high and low beam. Taillights, parking lights, signal lights, and interior lights shall all be operable. (4) Wipers. Each vehicle shall be equipped with adequate windshield wipers maintained in good operating condition. (5) Brakes. Both the parking and hydraulic or other brake system must be operable. (6) Steering. Excessive play in the steering mechanism shall not exceed three (3) inches free play in turning the steering wheel from side to side. (7) Engine. The engine compartment shall be reasonably clean and free of uncontained combustible materials. (8) Mufflers. Mufflers shall be in good operating condition. (9) Windows. The windshield shall be without cracks or chips that could interfere with the driver's vision. All other windows shall be intact and able to be opened and closed as intended by the manufacturer. The windows and windshield shall be maintained in a reasonably clean condition so as not to obstruct visibility. (10) Door Latches. All door latches shall be operable from both the interior and exterior of the vehicle. (11) Suspension. The vehicle's suspension system shall be maintained so that there are no sags because of weak or broken springs or excessive motion when the vehicle is in operation because of weak or defective shock absorbers. (12) Seats. All seats shall be securely fastened. Seat belts, when required by the California Vehicle Code, shall be installed. The upholstery shall be free of grease, holes, rips, torn seams, and burns. 2018-09-18 Agenda Packet Page 43 -11- (13) Interior. The interior of each vehicle and the trunk or luggage area shall be maintained in a reasonably clean condition, free of foreign matter, offensive odors, and litter. The seats shall be kept reasonably clean and without large wear spots. The door handles and doors shall be intact and clean. The trunk or luggage area shall be kept empty except for spare tire and personal container for the driver not exceeding one (1) cubic foot in volume and emergency equipment, to allow maximum space for passenger luggage and belongings. (i) Each for-hire vehicle, except taxicabs and Low Speed Vehicles, shall contain: (1) A fire extinguisher of the dry chemical or carbon dioxide type with an aggregate rating of at least 5 B/C units and a current inspection card affixed to it. (2) A minimum of three (3) red emergency reflectors. (3) A first-aid kit containing medical items to adequately attend to minor medical problems. (j) In the event that a for-hire vehicle for which a permit has been approved is taken out of service, by the permit holder for maintenance or any purpose, other than a violation of any provision of this Ordinance, a spare vehicle operating permit may be granted. The spare vehicle operating permit shall only be valid for the vehicle for which it was issued. The permit holder may only utilize a spare for-hire vehicle which has been duly inspected by an MTS inspector and approved prior to use. The permit holder must immediately inform an MTS inspector when a spare for-hire vehicle is in use and the location of the disabled vehicle. The spare vehicle will be issued a "spare vehicle" sticker which must be affixed to the left rear portion of the for-hire vehicle for which it is approved, in plain view from the rear of the for-hire vehicle. The permit holder may utilize one (1) spare for-hire vehicle for a period not to exceed thirty (30) calendar days from the date of issuance. This subsection shall not be construed, nor deemed to replace, those provisions in this Ordinance which apply to permanent replacement of a for-hire vehicle. (k) The medallion issued to the permit holder must be affixed by an MTS inspector on the for-hire vehicle for which the permit is approved in plain view from the rear of the for-hire vehicle. The permit holder must immediately report the loss, destruction, or defacing of a medallion to the Chief Executive Officer. Except as provided in Subsection (j), it shall be unlawful to operate a for-hire vehicle without the medallion affixed and visible. (l) There shall be displayed in the passenger compartment of each for-hire vehicle between the sun visors, in full view of the passengers in the front and rear seats, a card not less than ten (10) inches wide by six (6) inches high in size. Posted on this card, utilizing "Universe" font in black ink on white background, shall be: 1) The first line of the card, 3/4 inch in height, shall say one of the following according to permit type: TAXICAB, SIGHTSEEING, CHARTER, NONEMERGENCY, LOW- SPEED VEHICLE, OR JITNEY LOST AND FOUND. 2) Below this, the card shall include the vehicle medallion number in three-inch numerals. 3) Below the medallion number, the name, address, and phone number of the MTS Taxicab Administration and the permit holder and/or permit holder trade name shall be printed, 1/4-inch in height. 2018-09-18 Agenda Packet Page 44 -12- 4) Without approval from MTS, no other signs, markings, lettering, decals, or any type of information shall be displayed within 18 inches around the card. (m) Advertisements, whether displayed on the inside or outside of the vehicle, shall be posted in accordance with MTS Board Policy No. 21, Revenue-Generating Display Advertising, Concessions, and Merchandise, any guidelines developed by the Chief Executive Officer, and the provisions of this Ordinance. Advertisements shall not be displayed without prior approval from MTS. (n) The driver of each for-hire vehicle may either carry: a map of the City, published within the past two (2) years; or an electronic device equipped with a GPS enabled map, which shall be displayed to any passenger upon request. (o) The maximum rates of fare charged for for-hire vehicle services shall be clearly and conspicuously displayed in the passenger compartment. (p) Each for-hire vehicle licensed to operate in the City shall have located on the passenger side dashboard area a driver identification card provided by the County of San Diego Sheriff or the Chief Executive Officer. The driver identification card shall have no alterations or information covered. The driver identification card shall be visible to passengers, peace officers and MTS inspectors so they can easily view the driver identification card from either inside or outside the vehicle. The driver identification card shall bear the following information: (1) The number of the license of the driver; (2) The name and business address of the driver; (3) The name of the owner of the vehicle; and (4) A small photograph of the driver. (q) Each for-hire vehicle shall be equipped with a rearview mirror affixed to the right side of the vehicle, as an addition to those rearview mirrors otherwise required by the California Vehicle Code. (r) The driver shall offer each passenger a printed receipt upon payment of the fare. The receipt shall accurately show the date, the amount of the fare, the driver’s name and ID number, the taxicab number, the company (DBA) name, and the dispatch service name with phone number. (s) All disputes to fare shall be determined by the peace officer or MTS inspector most readily available where the dispute is had. It shall be unlawful for any person to fail or refuse to comply with such determination by the peace officer or MTS inspector. (t) It is unlawful for any person to refuse to pay the lawful fare of a for-hire vehicle after employing or hiring the same. (u) The driver of any for-hire vehicle shall promptly obey all lawful orders or instructions of any peace officer, fire fighter, or MTS inspector. (v) No driver of any for-hire vehicle shall transport any greater number of persons, including the driver, than the manufacturer's rated seating capacity for the vehicle. 2018-09-18 Agenda Packet Page 45 -13- (w) It shall be unlawful for any person to solicit business for a for-hire vehicle by making a contract or agreement with any owner of any hotel, apartment house, motel, inn, rental units, restaurant, or bar, or with the agent or employees of such owner, by which the owner, agent or employee receives any type of payment or commission for recommending or directing any passenger to a specific for-hire vehicle or company. It shall be unlawful for any permit holder, association, or driver to have or make a contract or agreement with any owner of any hotel, apartment house, motel, inn, rental units, restaurant, or bar, or with the agents or employees of such owner, by which the permit holder, association or driver receives any type of payment or commission for recommending or directing any passenger to an establishment operated by a specific owner. (x) The driver of a for-hire vehicle shall wear, in a manner clearly visible on their person, an identification card approved by the Chief Executive Officer. (y) The Board specifically finds that the dress, grooming, and conduct of for-hire vehicle drivers affect the public health and safety, particularly as it relates to visitors and the tourist industry. Therefore, while driving or operating a for-hire vehicle, drivers shall be hygienically clean, well- groomed and neat, and suitably dressed. Violations of this subsection are administrative in nature and shall not be the subject of criminal prosecution. (1) The term "hygienically clean" shall refer to that state of personal hygiene, body cleanliness, and absence of offensive body odor normally associated with bathing or showering on a regular basis. (2) The term "well-groomed" shall mean that male drivers shall be clean-shaven, except for those parts of the face where a beard or mustache is worn and their hair shall be neatly trimmed; beards or mustaches shall be groomed and neatly trimmed at all times in order not to present a ragged appearance. For all drivers, it shall mean that scalp or facial hair shall be combed or brushed and that all clothing is clean, free from soil, grease and dirt, and without unrepaired rips or tears. (3) The term "neat and suitably dressed" shall be interpreted to require that a driver shall be fully covered by clothing at a minimum from a point not to exceed four (4) inches above the center of the kneecap to the base of the neck, excluding the arms. Drivers shall wear shoes. It shall not be permissible for any driver to wear as an outer garment any of the following: undershirt or underwear, tank tops, body shirts (see-through mesh), swim wear, jogging or warm-up suits or sweatshirts or similar attire, jogging or bathing shorts or trunks, or sandals. Trouser-type shorts that are no shorter than four inches above the center of the kneecap are permissible. (z) For-hire vehicles shall comply with the California Vehicle Code, e.g., not impede traffic, and, where applicable, not operate on streets where posted speed limits are above 35 miles per hour. For-hire vehicle drivers, including taxicab, shall not load or unload passengers in traffic lanes. (Section 1.8 amended 12/14/2017) (Section 1.8 amended 10/13/2016) (Section 1.8 amended 5/12/2016) (Section 1.8 amended 2/12/2015) (Section 1.8 amended 8/7/2003) (Section 1.8 amended 11/14/2002) (Section 1.8 amended 9/24/1998) (Section 1.8 amended 2/13/1997) 2018-09-18 Agenda Packet Page 46 -14- (Section 1.8 amended 6/24/1993) Section 1.9 - Public Liability (a) It shall be unlawful to operate a for-hire vehicle unless the permit holder establishes and maintains in effect one of the forms of financial responsibility specified in this section. (1) This requirement may be met by maintaining a valid policy of insurance executed and delivered by a company authorized to carry on an insurance business, the financial responsibility of which company has been approved by the Chief Executive Officer. The terms of the policy shall provide that the insurance company assumes financial responsibility for injuries to persons or property caused by the operation of the for-hire vehicle in an amount determined by the Chief Executive Officer. (2) The permit holder may also meet this requirement by obtaining a certificate of self-insurance for a specified amount approved by the Board and pursuant to the applicable provisions of the California Vehicle Code. (b) A valid proof of insurance issued by the company providing the insurance policy required under Subsection (a) (1) of this section shall be filed with and approved by the Chief Executive Officer. This certificate shall provide that MTS is a named certificate holder and shall be placed in each vehicle, per California Vehicle Code Section 16020. It shall also provide that the insurer will notify MTS of any cancellation and that the cancellation notice shall be in writing and shall be sent by registered mail at least thirty (30) days prior to cancellation of the policy. The certificate shall also state: (1) The full name of the insurer; (2) The name and address of the insured; (3) The insurance policy number; (4) The type and limits of coverage; (5) The specific vehicle(s) insured; (6) The effective dates of the certificate; and (7) The certificate issue date. (Section 1.9 amended 9/17/2015) (Section 1.9 amended 11/14/2002) Section 1.10 - Financial Ownership and Operating Records: Reporting Requirements (a) Every person engaged in the business of operating a for-hire vehicle within the City under a permit granted by the Chief Executive Officer shall maintain: (1) Financial records, including but not limited to the current executed taxicab driver lease agreement that includes all aspects of the business relationship between the permit holder and the lessee, and written receipts of all payments from lessee in accordance with good accounting practices; (2) Ownership records; and (3) Operating records in a form, and at intervals, which shall be determined from time to time by the Chief Executive Officer. 2018-09-18 Agenda Packet Page 47 -15- (b) Ownership and operating records shall be made available to the Chief Executive Officer upon demand at any reasonable time. The permit holder shall retain operating records for a minimum of six (6) months from the date the records are created. (c) For purposes of this section, ownership records shall include, but are not limited to, the following: (1) Copies of the Articles of Incorporation as filed with the Secretary of State of California; (2) Records identifying all corporate officers and members of the corporation’s Board of Directors. A corporation shall report any change in corporate officers or members of its Board of Directors to MTS within ten (10) days of the effective date. (3) A stock register recording the issuance or transfer of any shares of the corporate stock; and (4) The registration cards issued by the State of California Department of Motor Vehicles to the vehicle owner for all for-hire vehicles operated under the authority of an MTS for-hire vehicle permit. Valid proof of registration shall be maintained in the vehicle at all times. (d) For purposes of this section, operating records shall include, but are not limited to, the following: (1) Typed or written dispatch records for taxicab or LSV companies which operate their own dispatch service; (2) Any logs which a for-hire vehicle driver keeps describing the trips carried by a for-hire vehicle other than a taxicab; (3) Copies of the daily trip log required by taxicab or LSV drivers under Section 2.4 (q); and (4) Any other similar records. (e) Between January 1 and December 31 of each calendar year, every permit holder shall file with the Chief Executive Officer a signed statement which shall report and attest to the accuracy of the following information: (1) The individual name(s), business name, business address, and telephone number of the permit holder(s); (2) The name and address of all legal and registered owner(s) of the for-hire vehicle(s); (3) The name and address of each person with a financial interest in the business which operates the vehicle(s); and (4) The year, manufacturer, model, vehicle identification number, license plate, and medallion number affixed to the permitted vehicle(s). 2018-09-18 Agenda Packet Page 48 -16- (f) If the permit holder is an individual, the permit holder must appear in person in the offices of MTS to file the statement; if the permit holder is a partnership, one of the partners must appear in person in the offices of MTS to file the statement; if the permit holder is a corporation or LLC, an officer of the corporation, or a member of the LLC, authorized to represent the company, must appear in person in the offices of MTS to file the statement and provide evidence San Diego City Council Policy 500-02 requirements are being met. (Section 1.10 amended 5/12/2016) (Section 1.10 amended 2/12/2015) (Section 1.10 amended 8/7/2003) (Section 1.10 amended 11/14/2002) (Section 1.10 amended 6/24/1993) Section 1.11 - Destruction, Permanent Replacement or Retirement of For-Hire Vehicles (a) Whenever a for-hire vehicle is destroyed, rendered permanently inoperative, is sold, or the permit holder is no longer the owner of the for-hire vehicle, the permit holder shall notify the Chief Executive Officer in writing within forty-eight (48) hours. (b) A replacement vehicle must be placed in service within ninety (90) days of the date the original vehicle is removed from service unless prior written permission has been obtained from the Chief Executive Officer. It is the intent of this section that the Chief Executive Officer, in granting such permission, gives due consideration to the operating situation of the permit holder on a case- by-case basis. The following guidelines are to be used in granting permission for a permit holder to take longer than ninety (90) days in placing a replacement vehicle in service. (1) The permit holder must submit a written request for an extension of time, stating the specific reason(s) additional time is required and identifying a plan and timetable for placing the replacement vehicle in service. Written documents sufficient to substantiate the factual information contained in the request should also be submitted. (2) The plan and timetable submitted must reflect a reasonable approach for placing the vehicle in service within the shortest possible time frame. (3) An additional period of time, not to exceed sixty (60) calendar days, may be granted to a permit holder in case of severe personal illness or other similar hardship. (4) An additional period of time, not to exceed thirty (30) calendar days, may be granted to a permit holder in case of extensive vehicle repairs or other similar reasons. (5) No extensions will be granted to any permit holder who is unable to meet the basic operational costs, including liability insurance, regulatory fees, and normal maintenance and repairs of operating a for-hire vehicle. (6) No more than one (1) extension will be granted for each vehicle in a single twelve (12) month period. (c) The Chief Executive Officer shall, as a matter of owner right, allow the replacement of a vehicle which is destroyed, rendered inoperative, sold or transferred, provided that the permit holder has complied with, and the for-hire vehicle is in conformance with, all applicable provisions of 2018-09-18 Agenda Packet Page 49 -17- this Ordinance. An owner must remove the markings from the vehicle that indicate it is a taxicab or LSV before the owner disposes of it. (d) When a permit holder retires any for-hire vehicle or vehicles from service and does not replace them within ninety (90) days, the permit for each such retired for-hire vehicle shall be considered abandoned and will be void. The permit holder shall immediately surrender each related medallion to the Chief Executive Officer. Such abandoned permits may not be restored by any means other than through application for new permits in the manner provided in this Ordinance. (Section 1.11 amended 10/13/2016) (Section 1.11 amended 8/7/2003) (Section 1.11 amended 11/14/2002) (Section 1.11 amended 2/13/1997) Section 1.12 - Driver's Identification Cards (a) No person shall drive or operate any for-hire vehicle under the authority of a permit granted under this Ordinance unless such person has and displays a valid driver's identification card obtained annually through the Sheriff of the County of San Diego. (b) No permit holder shall employ as a for-hire vehicle driver or operator any person who has not obtained a for-hire vehicle driver's identification card through the Sheriff of the County of San Diego. (c) No permit holder shall employ as a driver or operator any person whose privilege to operate a for-hire vehicle within the City has expired, or has been revoked, denied or suspended or prohibited. (d) A driver may drive for more than one permit holder. The driver must, however, have on file with and accepted by the Sheriff of the County of San Diego, a separate application on forms provided by the Sheriff, for each permit holder with whom he has a current driving agreement. A driver may have on file with the Sheriff a maximum of four (4) such applications at any one time. It shall be unlawful for a driver to accept or solicit passengers for hire in the City while operating the taxicab or LSV of any permit holder for whom the driver does not have such an application on file with the Sheriff. (e) No person shall drive or operate any for-hire vehicle, , under the authority of a permit granted under this Ordinance unless such person has successfully completed an MTS-approved driver training course concerning driver safety, rules, and regulations. Map reading, crime prevention, courtesy and professionalism and a corresponding qualification examination. (f) No person who has received a notice of prohibition pursuant to Section 1.14, or whose privilege to operate a for-hire vehicle within the City has expired, or has been suspended, revoked or denied by the Sheriff or the Chief Executive Officer shall drive or operate a for-hire vehicle within the City. (g) No for-hire vehicle driver's identification card shall be issued or renewed to any of the following persons: (1) Any person under the age of twenty-one (21) years. (2) Any person who has been convicted of a felony involving a crime of force or violence against any person, or the theft of property, unless five (5) years have elapsed 2018-09-18 Agenda Packet Page 50 -18- since his or her discharge from a penal institution or satisfactory completion of probation for such conviction during which period of time his or her record is good. (3) Any person who has been convicted of assault, battery, resisting arrest, solicitation of prostitution, any infraction, misdemeanor, or felony involving force and violence, or any crime reasonably and rationally related to the paratransit industry or any similar business operation which bears upon the integrity or ability of the driver to operate a for-hire vehicle business and transport passengers, unless five (5) years shall have elapsed from the date of discharge from a penal institution or the satisfactory completion of probation for such conviction. (4) Any person who, within the five (5) years immediately preceding the processing of the application, has been convicted of or held by any final administrative determination to have been in violation of any statute, ordinance, or regulation reasonably and rationally related to the for-hire vehicle industry or any similar business operation which would have authorized the suspension or revocation of the driver's identification card in accordance with Section 1.14 of this Ordinance. (5) Any person who is required to register as a sex offender pursuant to the California Penal Code. (6) Any person who has provided false information of a material fact in their application within the past five (5) years. (7) No person shall obtain or renew a driver's identification card unless such person has successfully completed a personal safety training course approved by the Chief Executive Officer. (8) When a driver permanently no longer drives for an MTS Taxicab Administration permit holder, the permit holder shall report this to the Sheriff’s Department within ten (10) calendar days. (h) The Sheriff is authorized to issue temporary for-hire vehicle driver identification cards pending the approval or denial of an application for a regular for-hire vehicle driver identification card. No temporary for-hire vehicle driver identification card shall be issued without the satisfactory completion of a local law enforcement agency record check of the applicant. Any temporary identification card so issued shall be valid for a period not to exceed ninety (90) days or until the date of approval or denial of the application for a regular for-hire vehicle driver identification card, whichever shall occur first. The issuance of a temporary identification card hereunder shall not authorize the operation of a for-hire vehicle following the denial of the application while pending the resolution of any appeal otherwise provided for in Section 1.16 of this Ordinance. The Sheriff or the Chief Executive Officer shall establish nonrefundable filing fees to defray the costs of processing regular and temporary driver identification cards. (Section 1.12 amended 12/14/2017) (Section 1.12 amended 5/12/2016) (Section 1.12 amended 11/15/2012) (Section 1.12 amended 8/7/2003) (Section 1.12 amended 11/14/2002) (Section 1.12 amended 9/24/1998) (Section 1.12 amended 10/30/1997) (Section 1.12 amended 11/9/1995) 2018-09-18 Agenda Packet Page 51 -19- Section 1.13 - Suspension and Revocation of Permit (a) Permits may be suspended or revoked by the Chief Executive Officer at any time in case: (1) The Chief Executive Officer finds the permit holder's past record to be unsatisfactory with respect to satisfying the provisions of this Ordinance. (2) The permit holder fails to comply with the applicable provisions of this Ordinance. (3) The drivers of the for-hire vehicle or vehicles fail to act in accordance with those provisions of this Ordinance which govern driver actions. The permit holder shall have strict liability in this regard; however, this provision shall not restrict the Chief Executive Officer’s ability to penalize a driver for violations of those provisions of this Ordinance which govern driver actions. (4) The owner shall cease to operate any for-hire vehicle for a period of ninety (90) consecutive days without having obtained written permission for cessation of such operation from the Chief Executive Officer. It is the intent of this section that the Chief Executive Officer, in granting such permission, gives due consideration to the operating situation of the permit holder on a case-by-case basis. The following guidelines are to be used in granting permission for a permit holder to cease operating a for-hire vehicle for a period longer than ninety (90) days. (a) The permit holder must submit a written request for an extension of time, stating the specific reason(s) additional time is required and identifying a plan and timetable for placing the vehicle back in service. Written documents sufficient to substantiate the factual information contained in the request should also be submitted. (b) The plan and timetable submitted must reflect a reasonable approach for placing the vehicle back in service within the shortest possible time frame. (c) An additional period of time, not to exceed sixty (60) calendar days, may be granted to a permit holder in case of severe personal illness or other similar hardship. (d) An additional period of time, not to exceed thirty (30) calendar days, may be granted to a permit holder in case of extensive vehicle repairs or other similar reasons. (e) No extension will be granted to any permit holder who is unable to meet the basic operational costs including liability insurance, regulatory fees, and normal maintenance and repairs of operating a for-hire vehicle. (f) No more than one (1) extension in time will be granted for each vehicle permit in a single twelve (12) month period. (5) The for-hire vehicle or vehicles, if operated as other than a taxicab, are operated at a rate of fare other than those fares on file with the Chief Executive Officer. 2018-09-18 Agenda Packet Page 52 -20- (6) The for-hire vehicle or vehicles, if operated as a taxicab or LSV, are operated at a rate of fare greater than those fares on file with the Chief Executive Officer or posted on the taxicab or LSV pursuant to Section 2.2 (b) of this Ordinance. (7) The for-hire vehicle or vehicles, if operated as a taxicab or LSV, are operated at a rate of fare greater than current maximum rate established by the Board pursuant to Section 2.2(a) of this Ordinance. (8) The permit holder fails to begin operating the for-hire vehicle for which the permit is first approved within ninety (90) days after the approval date. (9) The permit holder has been convicted of assault, battery, resisting arrest, solicitation of prostitution, any infraction, misdemeanor, or felony involving force and violence, or any crime reasonably and rationally related to the paratransit industry or any similar business operation which bears upon the integrity or ability of the applicant or permit holder to operate a for-hire vehicle business and transport passengers, unless five (5) years shall have elapsed from the date of discharge from a penal institution or the satisfactory completion of probation for such conviction. (10) The permit holder has been convicted of a crime that would require a person to register as a sex offender under the California Penal Code. For purposes of this section, a plea or verdict of guilty, a finding of guilt by a court, a plea of nolo contendere or a forfeiture of bail shall be considered a conviction. (b) A permit holder shall be notified in writing within 10 working days when a credible complaint has been filed with the Chief Executive Officer by a member of the public where such complaint involves the permit holder, the driver of the permitted for-hire vehicle, or the dispatch service to which the permit holder is subscribed. It shall be the responsibility of the permit holder to investigate the complaint and report in writing to the Chief Executive Officer within 30 days the result of the investigation and any corrective action taken or proposed. Where the complainant has agreed to the sharing of their identity, the results of the investigation, findings, and actions shall be communicated to the complainant. (c) In the event the Chief Executive Officer finds a permit holder has failed to responsibly respond to notification of complaints or to initiate corrective action, the Chief Executive Officer shall issue a notice of proposed adverse action to the permit holder. If the circumstances of the complaint or subsequent investigation so warrant, the Chief Executive Officer may issue a notice of adverse action to a driver independently of or in conjunction with any adverse action proposed to the permit holder. The Chief Executive Officer shall refer to the Administrative Penalty Guidelines in determining a proposed adverse action. (d) The permit holder or driver in receipt of a notice of proposed adverse action shall be given the opportunity to appear for an informal hearing before the Chief Executive Officer or designated representative. Failure to appear will constitute waiver of the hearing. Following the hearing or waiver thereof, the Chief Executive Officer shall issue the notice of adverse action if justified by the facts. If the Chief Executive Officer determines that the performance of the permit holder or driver involves criminal activity or constitutes a serious degradation of the public safety, convenience, or necessity, a notice of adverse action may be issued and the action effected without hearing. (e) Upon a finding by the Chief Executive Officer that a permit holder falls within the provisions of this section, the permit holder or driver shall be notified that his or her permit has been subjected to an adverse action and that the matter is such that the action may be appealed. In lieu 2018-09-18 Agenda Packet Page 53 -21- of an action provided for in the Administrative Penalty Guidelines, the Chief Executive Officer may impose a fine or a fine and a period of suspension for any violation(s) of this Ordinance. (Section 1.13 amended 12/14/2017) (Section 1.13 amended 10/13/2016) (Section 1.13 amended 5/12/2016) (Section 1.13 amended 8/7/2003) (Section 1.13 amended 11/14/2002) (Section 1.13 amended 6/24/1999) Section 1.14 - Suspension and Revocation of Driver's Identification Cards (a) Driver's identification cards may be suspended or revoked by the Chief Executive Officer at any time in case: (1) The Chief Executive Officer finds the driver's past record to be unsatisfactory with respect to satisfying the provisions of this Ordinance; or (2) The driver fails to comply with the applicable provisions of this Ordinance; or (3) Circumstances furnish grounds for the denial, suspension, revocation or refusal to renew the driver's identification card by the Sheriff under the terms of the applicable Ordinance of the County of San Diego; or (4) His/her California Driver's License is revoked or suspended; or (5) The driver is convicted of reckless driving or driving while under the influence of intoxicating liquors and/or narcotics; or (6) The driver has been convicted of assault, battery, resisting arrest, solicitation of prostitution, any crime involving force and violence, or reasonably and rationally is related to the ability or integrity of the driver to operate a for-hire vehicle or transport passengers; or (7) The driver has ever been convicted of a crime that requires registration under the California Penal Code as a sex offender. (b) For purposes of Subsections (a) (1) through (a) (6) of this section, a plea of nolo contendere, or a forfeiture of bail shall be considered a conviction if it occurred within the five (5) years immediately preceding the date of application for a permit or identification card. (c) Notwithstanding a driver's possession of a valid taxicab or LSV driver identification card, the Chief Executive Officer may deny, suspend, revoke, or refuse to renew the driver's privilege to operate a for-hire vehicle in the City if the driver falls within the provisions of this section. The Chief Executive Officer shall send a notice of prohibition the date postmarked to operate a taxicab or LSV to any holder of a Sheriff's driver identification card who is ineligible under Subsection (a) to operate a for- hire vehicle within the City limits. The notice of prohibition shall be appealable in accordance with Section 1.16. (Section 1.14 amended 5/12/2016) (Section 1.14 amended 8/7/2003) (Section 1.14 amended 11/14/2002) (Section 1.14 amended 6/24/1999) 2018-09-18 Agenda Packet Page 54 -22- Section 1.15 - Surrender of Medallion (a) When a permit has been suspended or revoked, the operation of any for-hire vehicle authorized by such permit shall cease, and its medallion surrendered immediately to the Chief Executive Officer. (Section 1.15 amended 11/14/2002) Section 1.16 - Right of Administrative Appeal from Denial, Suspension or Revocation of Permit or Driver's Identification Card or Related Adverse Action (a) The permit holder or driver shall be notified that he or she may file with the Chief Executive Officer a written administrative appeal ten (10) days after delivery of the notice of revocation or suspension, or the denial of a license, permit, or driver's identification card, the notice of prohibition to operate or the imposition of a fine. The permit holder or driver shall set forth in the appeal the reasons why such action is not proper. (b) If no administrative appeal is filed within the proper time, the permit or driver's identification card shall be considered revoked, suspended or denied, and shall be surrendered, the fine be imposed, as applicable, or the notice of prohibition to operate take effect. (c) Except as provided in Subsection (d), once an administrative appeal is filed, the revocation or suspension of the permit or driver's identification card, the effect of the notice of prohibition to operate, or the imposition of the fine shall be stayed pending the final determination of the administrative appeal. (d) If, in the Chief Executive Officer's opinion, the continued operation of a for-hire vehicle or possession of a driver's identification card represents an unsafe condition for any passenger or pedestrian, the revocation or suspension of the related permit, driver's identification card, or the effect of any notice of prohibition to operate shall not be stayed. A revocation or suspension of a permit imposed for failure to comply with Section 1.8 (f) or Section 1.9 is rebuttably presumed to represent an unsafe condition pending the determination of the appeal or the correction of the violation, whichever shall occur first. Notwithstanding, no medallion shall be reaffixed to a vehicle until the violation under Sections 1.8 (f) or 1.9 has been corrected. (Section 1.16 amended 8/7/2003) (Section 1.16 amended 11/14/2002) Section 1.17 - Procedure Upon Administrative Appeal (a) When an appeal is filed, the Chief Executive Officer shall review the appeal, and based on additional information provided therein, may revise the findings and penalty; in accordance with the additional information provided; or cause the appeal to be assigned to a Hearing Officer, who shall expeditiously schedule the hearing before him/her. (1) The Chief Executive Officer shall use California Department of General Services, Office of Administrative Hearings Administrative Law Judges as Hearing Officers. The assignment of Administrative Law Judges as Hearing Officers shall be determined by the California Department of General Services, Office of Administrative Hearings. (2) The Hearing Officer shall be a member of the California State Bar and shall not be an MTS employee. 2018-09-18 Agenda Packet Page 55 -23- (b) The appellant and the Chief Executive Officer or designate shall each have the right to appear in person and be represented by legal counsel, to receive notice, to present evidence, to call and cross-examine witnesses under oath, and to present argument. (c) An appellant may select an individual to interpret for them. MTS will not pay any costs or be held responsible for any aspect of the interpreter’s ability to accurately interpret the hearing. (1) The Hearing Officer shall have the power to compel attendance of witnesses and documents by subpoena, in accordance with state law. (2) The formal rules of evidence need not apply, and any relevant evidence that is the sort of evidence upon which responsible persons are accustomed to rely in the conduct of serious affairs shall be admissible. Hearsay evidence may be considered by the Hearing Officer, but no findings may be based solely on hearsay evidence unless supported or corroborated by other relevant and competent evidence. The formal exceptions to the hearsay rule shall apply. (d) The Chief Executive Officer shall promulgate supplementary rules and procedures for the conduct of the hearing, the forms of notice and proceedings, and the preparation and submission of the record. (e) The decision of the Hearing Officer shall be the final administrative remedy and shall be binding upon the parties to the appeal. (f) If the Hearing Officer decides to suspend or revoke a permit or driver's identification card, the appellant shall immediately surrender the medallion or driver's identification card to the Chief Executive Officer. (Section 1.17 amended 5/12/2016) (Section 1.17 amended 11/15/2012) Section 1.18 - Exceptions to Provisions (a) The provisions of this Ordinance do not apply to: (1) a vehicle properly licensed under the jurisdiction of the California Public Utilities Commission (CPUC) unless such vehicle also provides transportation services regulated by MTS under this Ordinance; (2) or to public transit vehicles owned, operated, or contracted for by MTS; or (3) to a vehicle properly licensed by the State or County as an ambulance. (b) For compliance purposes, MTS inspectors may inspect all CPUC licensed vehicles, ensure they are not exceeding the authority granted by their license or operating as unlicensed private- hire transportation provider. (Section 1.18 amended 12/14/2017) (Section 1.18 amended 5/12/2016) (Section 1.18 amended 11/15/2012) (Section renumbered to 1.18 9/24/1998) (Section 1.17 amended 1/12/1995) 2018-09-18 Agenda Packet Page 56 -24- (Section 1.17 amended 6/24/1993) Section 1.19 - Chief Executive Officer's Authority to Adopt Rules and Promulgate a Schedule of Fines (a) Except where Board action is specifically required in this Ordinance, the Chief Executive Officer may adopt any rules and regulations reasonable and necessary to implement the provisions of this Ordinance. The Chief Executive Officer shall promulgate a schedule of administrative fines and penalties for violations of this Ordinance in lieu of the revocation or suspension of a permit or identification card, a copy of which schedule shall be filed with the Clerk of the Board. (Section renumbered to 1.19 9/24/1998) Section 1.20 - Americans with Disabilities Act (a) Permit holders, vehicles, and drivers are required to comply with the requirements of the federal Americans with Disabilities Act (ADA), and ADA regulations are hereby incorporated into MTS Ordinance No. 11 by reference. A violation of ADA requirements is a violation of this Ordinance and subject to a fine or suspension or revocation or a combination. (Section renumbered to 1.20 9/24/1998) (Section 1.19(a) was added 4/10/1997) SECTION 2.0 - TAXICABS AND/OR LSVs Section 2.1 - Types of Service (a) A taxicab or LSV is authorized to provide exclusive ride and group ride service. (Section 2.0 and 2.1 amended 8/7/2003) Section 2.2 - Rates of Fare (a) After a notice and open public hearing of the Taxicab Advisory Committee, MTS shall establish a maximum rate of fare for exclusive ride and group ride hire of taxicabs and/or LSVs except for trips from San Diego International Airport. A permit holder may petition the Board for any desired change in the maximum taxicab or LSV rates for exclusive ride and/or zone rates and group ride hire. (b) Taxicab trips from San Diego International Airport shall be at a uniform rate of fare. Rates for trips originating at the airport may include an extra charge equal to the Airport Trip Fee assessed against the individual taxicab operator by the San Diego County Regional Airport Authority. The extra may not be charged on any trip that does not originate at the airport or on any trip where the taxicab operator does not pay the fee to the San Diego County Regional Airport Authority. The extra charge may only be charged to the customer by utilizing the extra button on the taxicab meter. A driver may not verbally request payment. All taxicabs utilizing the Airport Trip Fee extra button must have a decal, approved by the Chief Executive Officer and the County of San Diego Office of Weights and Measures. The decal shall identify and accurately describe the extra charge consistent with regulatory requirements. 2018-09-18 Agenda Packet Page 57 -25- (c) Each permit holder shall file with the Chief Executive Officer the rates of fare that he/she will charge, which shall not exceed the maximum rate set by the Board pursuant to Section 2.2(a). (1) Each taxicab permit holder shall have the taximeter set by properly licensed personnel for the rate that he/she will charge and have the taximeter sealed and inspected. (2) All taxicabs shall accept major credit cards including, but not limited to, VISA, MasterCard, American Express, and Discover. Fees shall not be passed onto passengers. (d) If a taxicab permit holder desires to change his/her rates of fare, he/she shall file with the Chief Executive Officer the new rates, reset the taximeter, have the taximeter sealed and inspected, and post the revised rates on each side of the taxicab as provided in Subsection (c) of this section. (e) It shall be unlawful for a permit holder or driver to operate any taxicab in the City, unless the vehicle is equipped with a taximeter that meets the requirements of the State of California. (1) The taximeter shall calculate fares upon the basis of a combination of mileage traveled and time elapsed. When operative with respect to fare indication, the fare- indicating mechanism shall be actuated by the mileage mechanism whenever the vehicle is in motion at such a speed that the rate of mileage revenue equals or exceeds the time rate, and may be actuated by the time mechanism whenever the vehicle speed is less than this, and when the vehicle is not in motion. (2) Waiting time shall include all time when a taxicab occupied or engaged by a passenger is not in motion or is traveling at a speed which is slow enough for the time rate to exceed the mileage rate. Waiting time will also include the time consumed while standing at the direction of the passenger or person who has engaged the taxicab. (3) It shall be the duty of every permit holder operating a taxicab to keep the taximeter in proper condition so that the taximeter will, at all times, correctly and accurately indicate the charge for the distance traveled and waiting time. The taximeter shall be at all times subject to the charge for the distance traveled and waiting time. (4) The taximeter shall be at all times subject to inspection by an MTS inspector or any peace officer. The MTS inspector or peace officer is hereby authorized at his or her instance or upon complaint of any person to investigate or cause to be investigated the taximeter, and upon discovery of any inaccuracy in the taximeter, or if the taximeter is unsealed, to remove or cause to be removed the vehicle equipped with this taximeter from the streets of the City until the taximeter has been correctly adjusted and sealed. Before being returned to service, the vehicle and taximeter must be inspected and approved by the Chief Executive Officer. (5) Any device repairperson who places into service, repairs, or recalibrates a taximeter shall record the tire size and pressure of the drive wheels of that vehicle, as tested, on the repair person's sticker. (6) It shall be the duty of the permit holder to ensure the proper device repair person's sticker is affixed to the taximeter and to ensure the tires are the proper size. 2018-09-18 Agenda Packet Page 58 -26- (f) It shall be unlawful for any driver of a taxicab, while carrying exclusive or group ride passengers, to display the flag or device attached to the taximeter in such a position as to denote that the vehicle is for hire, or is not employed, or to have the flag or other attached device in such a position as to prevent the taximeter from operating. It shall be unlawful for any driver to throw the flag into a position which causes the taximeter to record when the vehicle is not actually employed, or to fail to throw the flag or other device into non-recording position at the termination of each and every service. (g) The taximeter shall be so placed in the taxicab that the reading dial showing the amount of fare to be charged shall be well-lighted and easily readable by the passenger riding in such taxicab. (h) It shall be unlawful for any permit holder and/or driver of a taxicab or LSV to demand of a passenger a charge for hire which is greater than the current maximum rate approved by the Board pursuant to Section 2.2 (a) or (b) of this Ordinance. (i) Except as provided in this section, is shall be unlawful for any permit holder and/or driver to demand of a passenger a charge for hire which is greater than the permit holder's meter rate filed with the Chief Executive Officer pursuant to Sections 2.1 (a), 2.2 (b), or 2.2 (c) of this Ordinance. (j) Nothing in this Ordinance shall preclude a permit holder or driver from agreeing with prospective passenger(s) to a rate of fare which is less than the permit holder's filed and posted rates of fare if the agreement is entered into in advance of the passenger(s), hiring the taxicab for the trip. (Section 2.2 amended 12/14/2017) (Section 2.2 amended 5/12/2016) (Section 2.2(c)(2)amended 11/15/2012) (Section 2.2(b) amended 4/19/2012) (Section 2.2 amended 8/7/2003) (Section 2.2 amended 5/8/2003) (Section 2.2 amended 11/14/2002) (Section 2.2 amended 6/24/1999) (Section 2.2 amended 9/24/1998; Section 2.2c operative May 1, 1999) (Section 2.2 amended 10/30/1997) (Section 2.2 amended 4/10/1997) Section 2.3 - Equipment and Specifications (a) No taxicab shall be operated until the taximeter thereon has been inspected, tested, approved and sealed by an authorized representative of the State of California, and thereafter so maintained in a manner satisfactory to the Chief Executive Officer. (b) Each taxicab may be equipped with a device which plainly indicates to a person outside the taxicab whether the taximeter is in operation or is not in operation. (c) Mandatory Exterior Markings: The permit holder must display one of the following exterior markings schemes on each taxicab: (1) Exterior Marking Scheme 1: The following must be displayed if in use of Exterior Marking Scheme 1: 2018-09-18 Agenda Packet Page 59 -27- (A) The permit holder’s trade name shall be painted or permanently affixed in letters and numerals four (4) inches high all on one line on the upper third part of both rear doors or both rear quarter panels utilizing "Univers" or other Chief Executive Officer pre-approved font in black or white lettering to produce maximum contrast adequately spaced for maximum readability. In the event the trade name does not fit on one line utilizing four (4) inch lettering, the trade name lettering must be as large as possible, up to four (4) inches in height, to enable the trade name to fit on one line. (B) The medallion number shall be painted or permanently affixed, on both rear doors or both rear quarter panels, one (1) inch below the permit holder's trade name, six (6) inches high, utilizing "Univers" or other Chief Executive Officer pre-approved font in black or white lettering to produce maximum contrast adequately spaced for maximum readability. (2) Exterior Marking Scheme 2: The following must be displayed if in use of Exterior Marking Scheme 2: (A) The permit holder's trade name shall be painted or permanently affixed in letters and numerals four (4) inches high all on one line on the upper third part of both front doors utilizing "Univers" or other Chief Executive Officer pre- approved font in black or white lettering to produce maximum contrast adequately spaced for maximum readability. In the event the trade name does not fit on one line utilizing four (4) inch lettering, the trade name lettering must be as large as possible, up to four (4) inches in height, to enable the trade name to fit on one line. (B) The medallion number shall be painted or permanently affixed, on both front doors, one (1) inch below the permit holder's trade name, six (6) inches high, utilizing "Univers" or other Chief Executive Officer pre-approved font in black or white lettering to produce maximum contrast adequately spaced for maximum readability. (C) The permit holder's trade name and medallion number shall be painted or permanently affixed on the rear of the taxicab, four (4) inches high, utilizing "Univers" or other Chief Executive Officer pre-approved font in black or white lettering to produce maximum contrast adequately spaced for maximum readability. In the event the rear of the vehicle does not have four inches of vertical space for the trade name and medallion number, the rear lettering may be less than four inches, provided that it is easily readable from a distance of 50 feet. (d) Optional Exterior Vehicle Markings. The permit holder has the option of choosing to post any combination of the below-listed five options on his or her taxicab which must be posted only at the specific location and in the size noted. (1) Trade Name Logo. If the permit holder chooses to display his or her trade name logo, the trade name logo shall be posted only on the rear portion of both side rear quarter panels. (2) Dispatch Service Provider. If the permit holder chooses to display the dispatch service provider name or logo, the dispatch service provider name or logo cannot utilize the words "cab" or taxi." The dispatch service provider name or logo must be displayed only on the rear portion of both side rear quarter panels. 2018-09-18 Agenda Packet Page 60 -28- (3) Telephone Number. If permit holder chooses to display a telephone number, the telephone number must be no more than three (3) inches in height and posted only on the top front portion of both front side quarter panels. (4) "Driver Carries Only $_ Change”. If the permit holder chooses to post "Driver Carries only $_ Change”, postings must be located only on rear quarter panels near the rear door but clear of the rates of fare. (5) "Leased to Driver”. If permit holder chooses to post "Leased to Driver," it must be posted only on both side rear quarter panels near the rear door but clear of the rate of fares in lettering no larger than 1 inch. (6) Body Numbers. If the permit holder chooses to post an internally assigned body number, different from the medallion number, the body number shall be posted in one (1) inch numerals on the front and rear bumpers. (e) All other exterior vehicle markings are prohibited unless they are directly related to the permit holder's business and pre-approved by the Chief Executive Officer. (f) All taxicabs shall be equipped and operated so that they may be dispatched by two- way radio or two-way electronic communication, monitored by a dispatcher, in response to a telephone or other request for service by a prospective passenger. (1) Means of dispatch device must be turned on, and audible to driver, at all times the taxicab is in service. (2) dispatch equipment, such as a two-way radio, cellular phone or tablet, shall be securely mounted within the vehicle in such a way to be visible to peace officers and MTS inspectors and allow for hands-free operation while the vehicle is in motion. (g) If radio dispatch capability is utilized, the dispatch service must abide by the following: the radio dispatch capability described in paragraph (d) of this section must be provided so as to conform to the regulations of the Federal Communications Commission (FCC) pertaining to Land Transportation Radio Services. Failure to conform to those regulations will additionally constitute a failure to meet the requirements of this section. (1) The current valid FCC license shall be on file with MTS. (2) Taxicab permit holder shall provide current proof the radio or electronic device has passed inspection by an MTS-approved inspector. (3) Taxicab radios shall have the capability to receive or transmit only on frequencies specified in the FCC license of the radio service subscribed to by the permit holder. (h) Each permit holder shall equip each permitted taxicab with a device capable of electronically processing credit card transactions. The device must be visible to all passengers and must allow the passenger to operate the payment device independently of the driver, without having to hand the credit card to the driver. The device must be fully operational at all times. The permit holder or dispatch service shall be the merchant of record associated with the device. Any means of electronic credit card acceptance is acceptable so long as it complies with the provisions set forth in Section 1.8 (r). 2018-09-18 Agenda Packet Page 61 -29- (Section 2.3 amended 12/14/2017) (Section 2.3 amended 10/13/2016) (Section 2.3 amended 5/12/2016) (Section 2.3 amended 2/12/2015) (Section 2.3 amended 11/15/2012) (Section 2.3 amended 6/27/2002) (Section 2.3 amended 9/24/1998; Section 2.3c operative May 1, 1999) (Section 2.3 amended 6/27/1991; effective 7/27/1991) (Section 2.3 amended 4/10/1997) Section 2.4 - Operating Regulations (a) Operating regulations shall be promulgated and adopted from time to time by resolution of the Board. These resolutions will have the force of law and will be published and processed as though set forth in this Ordinance. (1) Smoking is not permitted at any time inside a MTS-permitted vehicle. (b) Any driver employed to transport passengers to a definite point shall take the most direct route possible that will carry the passenger to the destination safely and expeditiously. (c) It shall be unlawful for the driver or operator of any taxicab or LSV to refuse a prospective or actual fare or to take any action to actively discourage a prospective or actual fare on the basis of race, creed, color, age, sex, national origin, disability, or for any other reason, unless it shall be readily apparent that the prospective or actual fare is a hazard to the driver or operator. Rude or abusive language directed to a passenger(s) or any physical action that a reasonable person would construe as threatening or intimidating shall be specifically defined as a violation of this section. (1) A driver, however, is not obligated to transport any person who is verbally or otherwise abusive to the driver. Such incidents shall also be noted on the trip log and notification shall be immediately sent to the dispatch service organization, which shall record the incident and keep the record for the minimum of 6 months. (2) A failure of the driver of any taxicab or LSV to assist a passenger with the loading or unloading of a reasonable size, number, and kind of passenger luggage or other items, when requested to do so, shall be specifically defined as a violation of this section. A driver is not required to lift any single piece of passenger luggage or other item that exceeds 25 pounds in weight. The requirement for loading or unloading assistance shall be limited to retrieval from or deposit onto the nearest curbside adjacent to the legally parked taxicab or LSV. A sign in the form of a transparent decal may be affixed to the rear-door, side window stating that, “DRIVER IS NOT REQUIRED TO LOAD LUGGAGE IN EXCESS OF 25 POUNDS PER ITEM OR OF A SIZE OR KIND THAT WILL NOT SAFELY FIT IN THE DESIGNATED LUGGAGE AREA OF THIS VEHICLE.” (3) A driver with a lawful disability that prevents him/her from handling items as defined in subsection (2) above is, upon submission of proof of such disability, relieved of responsibility for the requirements of subsection (2). A driver so situated may affix a small sign either in the passenger section of the vehicle to be clearly visible to a rear seat passenger or on the inside of the trunk cover lid stating that, “DRIVER HAS DISABILITY THAT PREVENTS HANDLING OF LUGGAGE.” 2018-09-18 Agenda Packet Page 62 -30- (d) It shall be unlawful for taxicab operators to refuse or discourage a prospective or actual fare based upon trip length within the cities, or method of payment. Driver shall not refuse payment by credit card. (1) A vehicle designated as an LSV may refuse a prospective or actual fare if the trip distance is outside allowed areas of operations. (2) A failure to promptly dispatch (within the standards required by Sections 2.6(a)(1), (2), and (3) of this Ordinance), or any action by a driver of any taxicab or LSV to refuse or discourage a prospective or actual passenger who must transport foodstuffs or who must meet a medical appointment, irrespective of trip length, shall be specifically defined as a violation of this section so long as that prospective passenger has notified the dispatch service of this circumstance at the time a request for taxi service was made. (e) No driver of any taxicab or LSV shall stop, park, or otherwise leave standing a taxicab or LSV on the same side of the street in any block in which taxicabs or LSVs are already stopped, parked, or otherwise standing except the taxicab or LSV may actively unload in a passenger loading zone or be parked in a marked taxi/LSV stand. (f) No driver shall stop, park or otherwise leave standing a taxicab or LSV within one- hundred (100) feet of any other taxicab or LSV except in a marked taxi/LSV stand or while actively loading or unloading passengers. (g) No driver shall stop, park, or otherwise leave standing any MTS permitted vehicle within fifteen (15) feet of any fire plug except as modified in Section 2.5 of this Ordinance. (h) No driver shall stop, park or otherwise leave standing any MTS permitted vehicle in a disabled parking zone except as authorized per California Vehicle Code section 22507.8. (i) An out-of-service sign must be displayed when the taxicab or LSV is not available for hire and is being operated or is lawfully parked for purposes of maintenance, inspection, or personal use. The sign must be placed in a location in the vehicle that is clearly visible from the exterior of the vehicle. The sign must be of durable material and written in block letters in black ink and easily readable from a distance of not less than ten (10) feet. (j) A taxicab driver may seek passengers by driving through any public street or place without stops, other than those due to obstruction of traffic, and at such speed as not to interfere with or impede traffic. (k) It shall be unlawful, however, for the driver to seek passengers by stopping at or driving slowly in the vicinity of an entertainment center or transportation center or any other location of public gathering, in such a manner as to interfere with public access to or departure from that center or location, or so as to interfere with or impede traffic. (l) It shall also be unlawful for a taxicab or LSV driver, having parked and left his or her taxicab or LSV, to solicit patronage among pedestrians on the sidewalk, or at any entertainment center, transportation center, or other location of public gathering. (m) No person shall solicit passengers for a taxicab or LSV other than the driver thereof; however, the Chief Executive Officer may authorize a dispatcher to solicit passengers and assist in loading passengers at such times and places as, in his or her discretion, public service and traffic conditions require. 2018-09-18 Agenda Packet Page 63 -31- (n) It shall be unlawful for the driver or operator of any taxicab or LSV to remain standing in any established taxicab or LSV stand or passenger loading zone, unless the driver or operator remains within twelve (12) feet of his or her taxicab or LSV, except when the driver or operator is actually engaged in assisting passengers to load or unload. (o) Only paying passengers and persons specifically authorized by the Chief Executive Officer may occupy a taxicab or LSV that is already occupied by a paying passenger. No driver, once a paying passenger has occupied the taxicab or LSV, shall permit any other nonpaying passenger to occupy or ride in the taxicab or LSV. (p) It shall be unlawful to respond to a call for service dispatched to another operator except when an LSV refers service to another operator because the trip distance is outside of the approved area of jurisdiction. (q) The taxicab or LSV driver shall maintain a daily trip log which shall be available for inspection upon request by any peace officer or MTS inspector. The trip log will accurately show the driver’s name, taxicab or LSV number, date, time, beginning odometer reading, starting and ending locations, type of service provided, and fare paid for each trip provided. (1) The daily trip log shall consist, at a minimum, of a five- by seven-inch paper form retained on a stiff-board writing surface with ruled lines and columns sufficient to contain the required information. All entries will be in black or dark blue ink, block letters, and be clearly legible. Colored paper that is lightly shaded is allowed provided there is sufficient contrast for entries to be easily read. Onboard electronically generated reports that meet the legibility requirements are acceptable. (2) The driver shall deliver trip logs to the permit holder upon request or at a weekly interval, whichever is less. (r) All operating regulations set forth in Section 1.8 apply. (s) The permit holder for any taxicab or LSV with a permit issued after July 1, 1991, shall comply with the following: (1) The color scheme of the vehicle may conform to that of the dispatch service. (2) Establish a business office in a location available to the public, and have staff on duty during regular business hours. (3) File with MTS, and charge a rate of fare common to the radio service organization providing service required by this Ordinance. (4) Maintain a current executed taxicab driver lease agreement for each current driver that includes all aspects of the business relationship between the permit holder and the lessee, and written receipts of all payments from lessee. (t) The taxicab company or the driver of the taxicab shall notify the passenger of the applicable rate prior to the passenger accepting the ride for walkup rides and street hails if different than the posted maximum rate. (Section 2.4 amended 12/14/2017) (Section 2.4 amended 10/13/2016) (Section 2.4 amended 5/12/2016) 2018-09-18 Agenda Packet Page 64 -32- (Section 2.4 amended 2/12/2015) (Section 2.4 amended 11/15/2012) (Section 2.4 amended 8/7/2003) (Section 2.4 amended 11/14/2002) (Section 2.4 amended 6/24/1999) (Section 2.4 amended 2/13/1997) (Section 2.4 amended 6/27/1991; effective 7/27/1991) Section 2.5 - Stands (a) The Chief Executive Officer may establish, locate and designate shared use taxicab/LSV stands for one or more taxicabs/LSVs, which stands when so established shall be appropriately designated "Taxis/LSVs Only." The operating regulations of this Ordinance shall apply to such stands and to taxicab/LSV stands established by the San Diego Unified Port District in areas under its jurisdiction within the City. (b) Each taxicab or LSV stand established hereunder may be in operation twenty-four (24) hours of every day, unless otherwise specified by the Chief Executive Officer. (c) Any individual, partnership, association, or other organization may petition MTS requesting that a new taxicab/LSV stand be established, or that the location of an existing taxicab/LSV stand be changed to another location. A nonrefundable filing fee to be determined by the Chief Executive Officer must be paid at the time the petition is submitted. (d) It shall be unlawful for a vehicle other than a taxicab or LSV with a proper MTS taxicab or LSV permit to occupy a taxi/LSV stand. (e) LSVs may only occupy taxicab stands that are specially signed, designated their approved use. (Section 2.5 amended 11/15/2012) (Section 2.5 amended 8/7/2003) Section 2.6 - Dispatch Services (a) In order to provide taxicab or LSV dispatch service required by Section 2.3(d, e), the dispatch service organization adding or changing subscribers after July 1, 1991 shall establish and conform to written policies and procedures concerning the following: (1) Standard time elapse for answering the telephone service-request line(s). (2) Standard time elapse for the taxicab's or LSV's arrival at requested pick-up location. (3) Passenger's request for a specific driver ("personals"). (4) Additional two-way communication devices (mobile or cellular phones) in taxicabs or LSVs (5) Lost and found for passengers' items. (6) Assignment of vehicle body numbers. 2018-09-18 Agenda Packet Page 65 -33- (7) Immediately notify the permit holder of all lost items and inquiries. Current written policies and procedures shall be available to subscribers from the radio dispatch organization, and on file with MTS. (b) Taxicab and/or LSV service organizations shall, 24 hours a day, have dispatch staff on duty at the business location, which must be a preapproved physical address, answer telephone- request line(s), properly dispatch those requests to all members, provide radio response to all licensed radio frequencies/channels, and respond to direct requests from drivers, permit holders, and MTS as well as law enforcement and local regulatory agencies. (c) Taxicab and or LSV dispatch services shall keep written records of all requests for taxi and/or LSV service, calls dispatched, and the time(s) each taxicab and/or LSV goes in and out of service. These records shall be kept on file for a minimum of six (6) months, and made available to MTS, upon request. (d) No person, partnership, corporation, association, other organization providing radio or other dispatch service shall dispatch a request for service to a driver, owner, or vehicle unless the driver, owner, and vehicle are properly licensed to provide the service requested. (e) The Chief Executive Officer may, at any time, revoke or suspend the taxicab or LSV privileges of or fine any person, partnership, corporation, association, other organization providing radio or other dispatch service that violates a provision of this ordinance. (Section 2.6 amended 12/14/2017) (Section 2.6 amended 10/13/2016) (Section 2.6 amended 11/15/2012) (Section 2.6 amended 8/7/2003) (Section 2.6 amended 9/24/1998) (Section 2.6 added 6/27/1991; effective 7/27/1991) Section 2.7 - Driver Safety Requirements (a) No taxicab vehicle shall be operated unless such vehicle is equipped with an emergency signaling device approved by the Chief Executive Officer. (b) No taxicab vehicle may be operated with window tinting, shades, or markings that could interfere with a clear view of the cab interior from the outside, unless equipped by the vehicle manufacturer and approved by an MTS inspector. (c) Taxicab/ dispatch services required by Section 2.3 shall at all times have a dispatch staff person on duty who has successfully completed a driver safety training course approved by the Chief Executive Officer. (d) The use of a cellular phone or other similar electronic device by drivers is prohibited at all times when the vehicle is in motion. Otherwise, California Vehicle Code rules apply. (Section 2.7 amended 12/14/2017) (Section 2.7 amended 10/13/2016) (Section 2.7 amended 5/12/2016) (Section 2.7 amended 11/15/2012) (Section 2.7 amended 8/7/2003) (Section 2.7 added 9/24/1998) 2018-09-18 Agenda Packet Page 66 -34- SECTION 3.0 - CHARTER VEHICLES Section 3.1 - Rates of Fare (a) Within thirty (30) calendar days following the issuance of a permit by the Chief Executive Officer, each permit holder shall file a document with the Chief Executive Officer reflecting the rates of fare being charged by said permit holder for charter services. (b) If a permit holder desires to change the rates of fare being charged for charter services during any calendar year, he shall first file a document with the Chief Executive Officer indicating said changes, and no change shall be effective until fourteen (14) days following the filing of said change. (c) No permit holder shall charge any rate of fare for charter services unless said rates are on file with the Chief Executive Officer as aforesaid, and duly displayed. (d) The rates of fare shall be established by a prearranged written contract on a per-mile or per-hour basis. (Section 3.1 amended 4/10/1997) Section 3.2 - Operating Regulations (a) It shall be unlawful for any charter vehicle to remain standing on any public street in the City, except such reasonable time necessary when enabling passengers to load or unload. (b) It shall be unlawful for any person, either as owner, driver, or agent, to approach and solicit patronage upon the streets, sidewalks, in any theater, hall, hotel, public resort, railway or airport, or light rail transit station. (c) The charter for-hire vehicle driver shall maintain a daily trip log which shall be available for inspection upon request by any peace officer or MTS inspector. The trip log will accurately show the driver's name and the medallion number on the vehicle. In addition, the trip log shall identify the scheduling parties by name, date, and time of the prearranged hire. If the trip is medical in nature, the passenger’s name may be omitted. (d) All other operating regulations defined in Section 1.8 apply. (Section 3.2 amended 12/14/2017) (Section 3.2 amended 11/14/2002) SECTION 4.0 - SIGHTSEEING VEHICLES Section 4.1 - Rates of Fare (a) Within thirty (30) calendar days following the issuance of a permit by the Chief Executive Officer, each permit holder shall file a document with the Chief Executive Officer reflecting the rates of fare being charged by said permit holder of sightseeing vehicle services. (b) If a permit holder desires to change the rates of fare being charged for sightseeing services during any calendar year, he shall first file a document with the Chief Executive Officer 2018-09-18 Agenda Packet Page 67 -35- indicating said changes, and no change shall be effective until fourteen (14) days following the filing of said changes. (c) No permit holder shall charge any rate of fare for sightseeing services unless said rates are on file with the Chief Executive Officer as aforesaid, and duly displayed. (d) The rate of fare shall be established on a per capita or per event basis. (Section 4.1 amended 4/10/1997) Section 4.2 - Operating Regulations (a) It shall be unlawful for any sightseeing vehicle to remain standing on any public street in the City, except such reasonable time necessary when enabling passengers to load or unload. (b) It shall be unlawful for any person, either as owner, driver, or agent, to approach and solicit patronage upon the streets, sidewalks, in any theater, hall, hotel, public resort, railway or airport, or light rail transit station. (c) All other operating regulations defined in Section 1.8 apply, except Section 1.8 (v). SECTION 5.0 - NONEMERGENCY MEDICAL VEHICLES Section 5.1 - Rates of Fare (a) Within thirty (30) calendar days following the issuance of a permit by the Chief Executive Officer, each permit holder shall file a document with the Chief Executive Officer reflecting the rates of fare being charged by said permit holder for nonemergency medical vehicle services. (b) If a permit holder desires to change the rates of fare being charged for nonemergency medical vehicle services during any calendar year, he shall first file a document with the Chief Executive Officer indicating said changes, and no change shall be effective until fourteen (14) days following the filing of said change. (c) No permit holder shall charge any rate of fare for nonemergency medical vehicle services unless said rates are on file with the Chief Executive Officer as aforesaid.. (d) The rate of fare for exclusive ride service shall be established on a per capita plus per mile basis. (e) The rates of fare for shared ride service shall be established on a per capita plus per mile basis, or on a per capita plus per zone basis. (Section 5.1 amended 12/14/2017) (Section 5.1 amended 4/10/1997) Section 5.2 - Operating and Equipment Regulations (a) It shall be unlawful for any nonemergency medical vehicle to remain standing on any public street in the City, except when enabling passengers to load or unload. 2018-09-18 Agenda Packet Page 68 -36- (b) All other operating regulations defined in Section 1.8 apply. (c) Special equipment on a nonemergency medical vehicle shall, at all times the vehicle is in operation, be in proper working order. Such vehicles equipped with wheelchair ramps or lifts shall have proper device(s) to secure each wheelchair on board. (d) The permit holder is responsible for ensuring that the driver of a nonemergency medical vehicle is properly trained: (1) in the use of any of the vehicle's special equipment; (2) concerning supervision of or assistance to the disabled passengers whom the driver is to transport. (Section 5.2 amended 6/22/1995) (Section 5.2 amended 6/24/1993) Section 5.3 - Driver Identification Cards In addition to the requirements set forth in Section 1.12, nonemergency medical vehicle drivers shall acquire and maintain valid proof of proper first-aid and CPR training. (Section 5.3 added 6/24/1993) SECTION 6.0 - JITNEY VEHICLES Section 6.1 - Rates of Fare (a) Within thirty (30) calendar days following the issuance of a permit by the Chief Executive Officer, each permit holder shall file a document with the Chief Executive Officer reflecting the rates of fare being charged by said permit holder for jitney services. (b) If a permit holder desires to change the rates of fare being charged for jitney services during any calendar year, he shall first file a document with the Chief Executive Officer indicating said changes, and no change shall be effective until fourteen (14) days following the filing of said change. (c) No permit holder shall charge any rate of fare for jitney services unless said rates are on file with the General Manage as aforesaid, and duly displayed. (d) The rates of fare shall be established on a per capita basis. (Section 6.1 amended 4/10/1997) Section 6.2 - Jitney Routes (a) A permit holder who wishes to provide a fixed route service shall apply to the Chief Executive Officer for authorization to serve a defined route with a specific vehicle. No for-hire vehicle may be operated as a jitney until it has met all other requirements of this Ordinance and has been approved for service on a specific fixed route. A jitney may be authorized to serve more than one route; however, a jitney may provide fixed route service on only those routes which the Chief Executive Officer has approved in writing for that vehicle. 2018-09-18 Agenda Packet Page 69 -37- (b) The application for a fixed route shall be in writing and shall contain the following information: (1) A description of the vehicle(s) which will be utilizing the route; (2) A detailed written description of the route, to include starting location, ending location, and the street name and direction of travel for all streets to be used in the route; (3) A map in sufficient detail to clearly indicate the proposed route; (4) The fare to be charged; and (5) Such other information as the Chief Executive Officer may, in his or her discretion, require. (c) Upon approval of a fixed route by the Chief Executive Officer, the permit holder shall display a representation of the route, the fare, and the permit holder's trade name on each side of the vehicle in letters large enough to be easily read by potential customers in accordance with the standards established by the Chief Executive Officer under Section 6.5 of this Ordinance. Only one (1) route may be displayed on a vehicle at any time. (d) If a permit holder wishes to alter his or her approved fixed route(s), he or she must apply in writing to the Chief Executive Officer, submitting the information required in Section 6.2 (b). (e) The Chief Executive Officer may, in his or her discretion, place conditions on the approval of fixed routes. (f) The Chief Executive Officer may change a route that has been approved previously when the Chief Executive Officer finds it necessary to do so. A change of route may be necessary when a street has been closed temporarily or permanently because of construction, or the direction of a street has been changed, or a street has been vacated, or for similar reasons as determined by the Chief Executive Officer. The Chief Executive Officer shall notify in writing any permit holder whose route has been changed. The Chief Executive Officer's change of a route is subject to appeal under Section 1.16 of this Ordinance. (g) Except as provided for within this subsection, an approved fixed route may not be transferred to another vehicle or permit holder. A permit holder may receive approval for a vehicle that is replacing a jitney already in service to use the approved fixed routes of the replaced vehicle. (Section 6.2 amended 11/14/2002) Section 6.3 – Operating Regulations (a) It is unlawful for any jitney to remain standing on any public street in the City, except when enabling passengers to load or unload, or except when standing in a jitney holding zone for the time period established by MTS. (b) It is unlawful for any person including, but not limited to, a jitney owner, driver, or agent thereof, to approach and solicit patronage upon the streets, sidewalks, in any theater, hall, hotel, public resort, railway, airport, or light rail transit station. 2018-09-18 Agenda Packet Page 70 -38- (c) A peace officer or MTS inspector may authorize a dispatcher to solicit passengers and assist with loading passengers at such times and places as, in his/her discretion, public service and traffic conditions require. (d) Except when a driver or operator is actually engaged in assisting passengers to load or unload, a jitney driver or operator must remain within twelve (12) feet of his/her jitney while the jitney is in service. (e) It is unlawful for a jitney vehicle to operate a fixed route service on other than that route designated by the Chief Executive Officer. (f) It shall be unlawful for a jitney driver to load or unload passengers in any place other than an authorized jitney stop, bus stop, or passenger loading zone. (g) All other operating regulations defined in Section 1.8 apply. (Section 6.3 amended 11/14/2002) Section 6.4 - Jitney Holding Zones (a) The Chief Executive Officer may, by resolution, locate and designate holding zones for one (1) or more jitneys, which holding zones when so established, shall be designated by appropriate signs. The operating regulations of Section 6.3 shall apply to any holding zones so established, and to holding zones established by the San Diego Unified Port District in areas under its jurisdiction. The Chief Executive Officer may, by his or her discretion, establish the maximum number of jitneys permitted to remain standing at one time in a holding zone. (b) Each holding zone established hereunder shall be in operation twenty-four (24) hours of every day, unless otherwise specified by the Chief Executive Officer. The Chief Executive Officer shall adopt written standards to determine whether to allow holding zones to be in operation fewer than twenty-four (24) hours every day. If a holding zone is to be in operation fewer than twenty-four (24) hours every day, the Chief Executive Officer shall cause signs to be posted at or near the holding zone indicating the hours and days of operation. (c) The Chief Executive Officer may, on his or her own motion, establish holding zones. (d) Any individual, partnership, corporation, association or other organization may petition MTS requesting that a new holding zone be established. The petition must be filed in writing with the Chief Executive Officer or his/her designee. The petition must state the reason for the request and the proposed location(s). The Board may approve, deny, or modify the request. (e) Whether initiated by the Chief Executive Officer under Subsection (c) of this section or by persons described in Subsection (d) of this section, before any holding zone is established, the proposed location of any holding zone must be reviewed by the Traffic Engineer of the City. The Traffic Engineer shall report his/her recommendations to approve, deny, or modify the proposed location in writing to the Chief Executive Officer. The Traffic Engineer's report shall include a statement of reasons supporting the recommendation to the Chief Executive Officer. (f) The Chief Executive Officer shall, by resolution, establish a maximum time limit for individual jitneys to remain standing in any holding zone. The time limit shall apply uniformly to all holding zones. 2018-09-18 Agenda Packet Page 71 -39- (g) It shall be unlawful for a vehicle other than a jitney with a proper MTS jitney permit to occupy a jitney holding zone. (Section 6.4 amended 11/15/2012) Section 6.5 - Equipment and Specifications (a) Each jitney shall bear on the outside, signs clearly designating the route which it serves. The specifications of the sign are subject to the approval of the Chief Executive Officer. The Chief Executive Officer shall adopt written standards for approval or denial of the size of the signs, the location of the signs on the vehicle, the size of the lettering or graphics on the signs, and other specifications that the Chief Executive Officer finds necessary. (b) All jitney vehicles must bear a trade name and shall be assigned a body number by the permit holder. The trade name and body number so assigned shall be placed on the vehicle in accordance with written standards adopted by the Chief Executive Officer. Any violation of this Ordinance shall constitute an infraction unless otherwise specified. SECTION 7.0 – LOW-SPEED VEHICLES Section 7.1 – Low-Speed Vehicle (LSV) Definition Low-Speed Vehicles (LSV) shall mean every vehicle that is designated per the requirements of Ordinance No. 11, Section 1.1(c). LSVs may operate by zones and/or a prearranged basis as set forth in Section 1.1 (d) (1)-(5). (Section 7.0 and 7.1 added 8/7/2003) Section 7.2 – Establishment of Zones The Chief Executive Officer shall establish and authorize the use of zones of operation. (Section 7.2 added 8/7/2003) Section 7.3 – Zone Rates of Fare (a) All vehicles permitted as LSV may use two methods of seeking compensation, either by zone rates or on a prearranged basis. Either method may be used when working inside of an approved zone. However, when operating on a prearranged charter basis, within an approved zone, no operator may exceed the maximum number of vehicles that are permitted. (b) Within thirty (30) calendar days following the issuance of a permit by the Chief Executive Officer, each permit holder shall file a document with the Chief Executive Officer reflecting the rates of fare being charged by said permit holder for LSV services. (c) When a permit holder desires to change the rates of fare being charged for LSV services during any calendar year, he shall first file a document with the Chief Executive Officer indicating said changes, and no change shall be effective until fourteen (14) days following the filing of said change. (d) No permit holder shall charge any rate of fare for LSV services unless said rates are on file with the Chief Executive Officer as aforesaid, and duly displayed. 2018-09-18 Agenda Packet Page 72 -40- (e) The rates of fare shall be established by a zone and/or prearranged written contract on a per-mile or per-hour basis. (f) The maximum rates of fare shall be established pursuant to Section 2.2. (Section 7.3 amended 10/13/2016) (Section 7.3 added 8/7/2003) Section 7.4 – Spare Vehicle Policy (a) The following sets out procedures for LSV permit holders to place a spare vehicle into service as either a temporary replacement for a permitted vehicle that is out of service for recharging or mechanical problems. (1) Spare LSVs must be marked with the approved company markings. (2) In place of the medallion number, the spare LSV must be marked “Spare LSV.” Where more than one spare LSV is being requested, under the provisions of paragraph 9, the LSVs will be marked “Spare LSV 1,” “Spare LSV 2,” and so on. The “Spare LSV” marking should be sized to fit in approximately the same space as the medallion number would otherwise be placed with legibility and visibility being the primary criteria. (3) Spare LSVs must be inspected upon initial issuance and annually thereafter. (4) All spare LSVs must meet all MTS insurance requirements. (5) To use a spare LSV that meets the requirements of 1 through 4 above, the permit holder must communicate in writing (facsimile is acceptable), a request to place a spare LSV into service. The request must state: (A) the medallion number of the LSV being taken out of service, the reason for being out of service, and the location of the out-of-service LSV; and (B) the estimated time the spare LSV will be in use. (6) When the out-of-service LSV is ready to re-enter service, the permit holder must immediately notify MTS in writing (facsimile is acceptable). (7) The out-of-service LSV may not be required to be reinspected to be placed back into service. (8) The spare LSV must be removed from service at the time the LSV it has been replacing is placed back into service. (9) Under normal circumstances, a permit holder may utilize spare LSVs. Permit holders may utilize spare LSVs in a ratio of 3:1 permits held. (10) Spare LSVs that are placed in service may only operate inside of the MTS- approved zone or zones. A permit holder shall not operate more spare vehicles than he/she has regular permitted vehicles. 2018-09-18 Agenda Packet Page 73 -41- (11) A permit holder found to have operated a spare LSV in deliberate violation of these procedures will be subject to immediate suspension/revocation of the permit and the loss of the spare LSV utilization privilege. (Section 7.4 amended 10/13/2016) (Section 7.4 amended 10/16/2003) (Section 7.4 added 8/7/2003) Section 7.5 – LSV Driver Identification Cards (a) Refer to Section 1.12 of this Ordinance to reference driver and permit holder ID requirements. (Section 7.5 added 8/7/2003) Section 7.6 - Equipment and Specifications (a) Each LSV shall display whether out of service in accordance with section 2.4 (i) of this Ordinance, which shall indicate to a person outside the LSV whether the LSV is in operation or is not. (b) Exterior Markings (1) Mandatory Exterior Vehicle Markings. The medallion number shall be painted or permanently affixed, on the front of the vehicle, one (1) inch below the permit holder's trade name, two (2) inches high, utilizing "Univers" or other Chief Executive Officer pre-approved font in black or white lettering to produce maximum contrast adequately spaced for maximum readability. (2) Optional Exterior Vehicle Markings. The permit holder has the option of choosing to post any combination of the below-listed five options on his or her LSV which must be posted only at the specific location and in the size noted and are subject to the Chief Executive Officer's approval. (A) Trade Name Logo. If the permit holder chooses to display his or her trade name logo, the trade name logo shall be posted only on the rear portion of both side rear quarter panels. (B) Radio Service Provider. If the permit holder chooses to display the radio service provider name or logo, the radio service provider name or logo cannot utilize the words "cab" or taxi." The radio service provider name or logo must be displayed only on the rear portion of both side rear quarter panels. (C) Telephone Number. If permit holder chooses to display a telephone number, the telephone number must be no more than two (2) inches in height and posted only on the top front portion of both front side quarter panels. (D) "Driver Carries Only $_ Change". If the permit holder chooses to post "Driver Carries only $_ Change", postings must be located only on panels near the rear door but clear of the rates of fare. 2018-09-18 Agenda Packet Page 74 -42- (E) "Leased to Driver". If permit holder chooses to post "Leased to Driver," it must be posted only on both rear quarter panels near the rear door area but clear of the rate of fares in lettering no larger than 1 inch. (3) All other exterior vehicle markings are prohibited unless they are directly related to the permit holder's business and pre-approved by the Chief Executive Officer. (c) All LSVs shall be equipped and operated so that they have adequate means of electronic communication during business hours. The LSV company business address shall serve as the storefront for the purpose of handling lost and found items. All other operational requirements she be met as set forth in section 1.8 (C). (Section 7.6 amended 12/14/2017) (Section 7.6 amended 10/4/2016) (Section 7.6 added 8/7/2003) SECTION 8 - EFFECTIVE DATE OF ORDINANCE This Ordinance shall be effective 30 days after adoption, and before the expiration of 15 days after its passage, this Ordinance shall be published once with the names of the members voting for and against the same in a newspaper of general circulation published in the County of San Diego. Amended: 12/14/2017 Amended: 10/13/2016 Amended: 5/12/2016 Amended: 9/17/2015 Amended: 2/12/2015 Amended: 11/15/2012 Amended: 4/19/2012 Amended: 10/16/2003 Amended: 8/7/2003 Amended: 5/8/2003 Amended: 11/14/2002 Amended: 6/27/2002 Amended: 5/23/2002 Amended: 6/24/1999 Amended: 9/24/1998 Amended: 10/30/1997 Amended: 4/10/1997 Amended: 2/13/1997 Amended: 11/9/1995 Amended: 6/22/1995 Amended: 1/12/1995 Amended: 6/24/1993 Amended: 6/27/1991 Amended: 5/23/1991 Amended: 10/11/1990 Repealed & Readopted: 8/9/1990 Amended: 4/12/1990 Amended: 4/27/1989 Adopted: 8/11/1988 2018-09-18 Agenda Packet Page 75 P a g e | 1 September 18, 2018 File ID: 18-0310 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE AMENDED AND RESTATED WASTEWATER DISPOSAL AGREEMENT AND DIRECTING THE METRO COMMISSION/METRO JPA REPRESENTATIVE TO SUPPORT THE SAME AT METRO COMMISSION/METRO JPA MEETINGS RECOMMENDED ACTION Council adopt the resolution. SUMMARY In 1998, the members of the JPA, or their predecessors in interest, entered into a Regional Wastewater Disposal Agreement with the City of San Diego for the Point Loma Wastewater Treatment Plant (PLWTP). In order to reduce outfall flows at PLWTP and provide more potable water to the region, the Pure Water Program was initiated. The 1998 Agreement did not contemplate the Pure Water Program and due to the complexities of incorporating the impacts of the Pure Water Program an Amended and Restated Agreement was required. The Agreement contains long-term financial protections for wastewater ratepayers by defining cost allocation for the Pure Water facilities. The Agreement also includes a financial cap on future Pure Water construction spending and a future revenue sharing component that is expected to pay back wastewater ratepayers over time for their investment in Pure Water. The resolution will support incorporating the Pure Water Program as part of the Amended and Restated Regional Wastewater Disposal Agreement, allow the City Metro Commission JPA Representative to support of the Agreement, authorize the City Attorney to make nonsubstantive changes to the Agreement, and authorize the Mayor to sign the final Agreement after approval by the City of San DiegoCity Council. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a Project" as defined under Section 15378 of the State CEQA Guidelines because the agreement does not authorize any activity that will result in a physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. 2018-09-18 Agenda Packet Page 76 P a g e | 2 DISCUSSION Background The Point Loma Wastewater Treatment Plant (PLWTP) is a regional facility in the Metro Wastewater System (Metro System) and is permitted to treat 240 million gallons of regional wastewater per day (MGD) to an Advanced Primary Level. Operated by the City of San Diego, the PLWTP was constructed in 1963 and is the backbone of the Metro Wastewater System. The City of Chula Vista’s daily average of 15.5 million gallons of wastewater is treated at PLWTP. The City of Chula Vista is one of 12 participating agencies (PAs) that convey wastewater to PLWTP for treatment. The Metro JPA is a joint powers agency composed of the 12 local public PAs each having the authority to provide and contract for the conveyance, treatment, and disposal of wastewater. The Metro JPA represents over 800,000 sewer rate payers and provides more than $75M a year in contributions to the Metro System. The Metro JPA and the City of San Diego are partners in overseeing the PLWTP. The federal Clean Water Act, passed in 1972, required that all wastewater treatment plants be permitted with a National Pollutant Discharge Elimination System (NPDES) permit. The permitting process in California involves the Environmental Protection Agency, the Regional Water Quality Control Board, the State Water Resources Control Board and the California Coastal Commission. The Clean Water Act required wastewater treatment plants to treat wastewater to at least a secondary level. The actual treatment required varied depending on whether discharging to a lake, river or ocean as well as the particular characteristics of the receiving water body. Several years after the Clean Water Act was enacted, it was amended to allow a modified permit (waiver of secondary treatment) if the discharger could demonstrate the safe discharge of wastewater to the receiving water. Initially, the City of San Diego applied for a modified permit for PLWTP, but later withdrew the application and began planning to convert PLWTP to secondary treatment. During this time, the window for applying for modified permits closed and the City of San Diego had not begun the construction to convert PLWTP. Subsequently, the EPA and several environmental groups sued the City of San Diego for not being at the secondary treatment level. In 1994, the Ocean Pollution Reduction Act (OPRA) was passed by the Federal government modifying the Clean Water Act. OPRA re-opened the window and gave the City of San Diego the opportunity again to apply for a modified permit for PLWTP. In return for support from the environmental community, the City of San Diego agreed to construct facilities to provide 45 million gallons per day of reclaimed water capacity. This resulted in the construction of the North City Water Reclamation Plant, the South Bay Water Reclamation Plant and the South Bay Ocean Outfall. The City of San Diego was granted the first modified permit for PLWTP in 1994. 2018-09-18 Agenda Packet Page 77 P a g e | 3 During this period there was a significant discontent between the City of San Diego and the PAs. The PAs felt that the City of San Diego was operating the Metro System and making large financial decisions without their input or consideration. The disputes led to the creation of the 1998 Regional Wastewater Disposal Agreement (Attachment #1) and the formation of the Metropolitan Wastewater Commission (Metro Commission). The Metro Commission was formed pursuant to the terms of the Regional Wastewater Disposal Agreement between the PAs and the City of San Diego. Each participating agency had representation on the Metro Commission. The Metro Commission was an advisory body to the San Diego City Council. The 1998 Regional Wastewater Disposal Agreement stipulated that the City of San Diego is the owner of the Metro System and that all decisions with respect to the planning, design, construction, operation and maintenance shall rest with the City of San Diego in consultation with the Metro Commission. The Chula Vista City Council approved the Agreement on April 21, 1998, per Resolution # 18968 (Attachment # 2) The purposes of the 1998 Agreement were: (1) to replace the prior-existing sewage disposal agreements between the City of San Diego and the PAs; (2) to provide certain contract rights to capacity in the Metro System to the PAs; (3) to establish a mechanism to fund the planning, design, construction, operation and maintenance of the Metro System by the City of San Diego and the PAs as necessary to provide hydraulic capacity, and to comply with applicable law and with generally accepted engineering practices; and (4) to establish a system of charges which allocates the costs of the planning, design and construction of wastewater conveyance, treatment and disposal facilities as are necessary on a fair and equitable basis. While the PLWTP continues to operate under a modified National Pollutant Discharge Elimination System Permit (NPDES) from the Environmental Protection Agency (EPA), the modified permit requires renewals. Each renewal has required a request to waive the secondary treatment requirement at PLWTP. Even though PLWTP is operating within the current law, and has demonstrated through 20 years of extensive ocean monitoring that there is no harm to the environment in operating as an Advanced Primary Wastewater Treatment Plant, there has been consistent pressure to fully convert PLWTP to a Secondary Wastewater Treatment Plant. The California Coastal Commission had warned the City of San Diego that it should not continue to assume that it will be granted waivers from the secondary treatment requirement. Environmental stakeholders have sued the City of San Diego in the past and have threatened to do so again if waiver applications are submitted without some type of progressive improvement to environmental protection. All this uncertainty creates a significant amount of risk and instability for not only the City of San Diego but all PAs in the Metro System. As previously mentioned, this past pressure ultimately resulted in the implementation of other projects in return for permit support from the environmental community. Even though PLWTP is currently discharging treated wastewater effluent that meets most of the criteria required of a secondary plant, implementing the Pure Water Program is seen as a way to help secure waiver approval in the future. Pure Water and Secondary Equivalency Seeking a sustainable alternative to a costly conversion to secondary treatment, a strategy was developed using the improvements proposed in the 2012 San Diego Recycled Water Study. This strategy is called 2018-09-18 Agenda Packet Page 78 P a g e | 4 Pure Water San Diego. The strategy allows achievement of equivalent treatment to secondary level within the Metro System by offloading flows from PLWTP to other facilities within the system thereby, reducing the discharges from PLWTP to levels below those required for secondary wastewater treatment. In addition, there is now proven technology available to convert these offloaded flows into potable drinking water. Two regional problems could be improved with one solution. Offloaded flows from PLWTP could be used as a new water source for the San Diego region while reducing the outfall to the ocean. The Pure Water program will still require a significant financial investment from wastewater rate payers. To commit to this investment, the PAs requested the City of San Diego seek permanent relief from the waiver approval requirement. It was thought that Federal legislation could be passed defining secondary equivalency for PLWTP and allowing PLWTP to remain at the advanced primary treatment level. In 2014 representatives from the PAs, the City of San Diego and environmental stakeholders (Surfrider, Coastkeeper, Audubon Society and Coastal Environmental Rights Foundation) agreed on proposed language to enable secondary equivalency legislation and titled it the Ocean Pollution Reduction Act II (OPRA II). An agreement was also prepared between the City of San Diego and the environmental stakeholders that assured environmental stakeholder support for NPDES permits at PLWTP as well as OPRA II. The City of San Diego included the concept of secondary equivalency and a program of facility construction within the 2015 NPDES permit for PLWTP. The concept included offloading 83 million gallons a day of wastewater from PLWTP and turning it into drinking water by the year 2035. The key to this strategy was securing secondary equivalency legislation (OPRA II) and ratepayer protection from having to construct secondary treatment at PLWTP. Instead of investing in secondary treatment facilities at PLWTP, which offered negligible improvement/benefit from the current advanced primary treatment, the investment would be in the Pure Water program. This would have an equivalent benefit to the environment but the added benefit of creating a local drinking water supply. The City of Chula Vista and the Metro Commission supported the City of San Diego’s NPDES permit that was submitted in 2015. Pure Water Program JPA Discussion The City of San Diego and the PAs have been meeting since 2014 to discuss how to implement the Pure Water program. The first phase of the Pure Water program is to be constructed at the North City Water Reclamation plant and will develop 30 million gallons a day of potable drinking water from secondary treated wastewater. The primary discussion point was allocation of costs. The challenge with Pure Water cost allocation was to fairly apportion costs between the water customer and the wastewater customer. Agreement has been reached that define the cost allocation principals. Consideration was given to how to memorialize the cost allocation principals and agreements. The logical mechanism was to use the 1998 Agreement, but it was quickly realized that the 1998 Agreement was going to need significant changes to accommodate the complexities of the Pure Water program. This led to the development of the Amended and Restated Agreement (Attachment # 3). The basis for financial discussions began with the cost of fully converting PLWTP to secondary treatment. This was the assumed worst-case scenario for the wastewater rate payer. Since this was the worst-case 2018-09-18 Agenda Packet Page 79 P a g e | 5 scenario, a financial cap is included in the Amended and Restated Agreement that limits future sewer rate payer financial exposure to this amount. The current cost estimate to convert PLWTP to secondary treatment is $1.8 billion. The cost estimate for Pure Water phase 1 is currently $1.388 billion and is divided into $546 million for wastewater costs (39%) and $842 million for water costs (61%). The City of Chula Vista’s portion of the wastewater cost is approximately 11.23% of the total costs, or approximately $62 million. The financial cap in the Amended and Restated Agreement will limit the City of Chula Vista’s long term Pure Water financial exposure to $160 million. Also, included in the Amended and Restated Agreement is a future revenue sharing component for wastewater customers. The revenue sharing is an additional incentive for PAs to support the Pure Water program and to provide a mechanism to recover wastewater rate payer investments. While the initial cost to produce Pure Water will be more expensive than the cost of imported water (similar to desalinated water which is currently more expensive than imported water) the unit cost of imported water is projected to increase faster than the unit cost to produce Pure Water and, eventually, will exceed the cost of Pure Water. When the cost of imported water exceeds the cost of Pure Water there will be revenue that will be credited back to the wastewater PAs based on their capital investment in the Pure Water program. Once the capital debt is paid off the credit will be based on proportional share of operation and maintenance costs for Pure Water. At this point in time, secondary equivalency legislation (OPRA II) has not yet been submitted for consideration at the Federal government. Staff from the City of San Diego has been working with Congressman Scott Peter’s office and Congressman Duncan Hunter’s office on sponsoring the legislation. The lack of secondary equivalency legislation approval reinforces the need and importance of having a financial cap for wastewater rate payers. Next Steps The City of San Diego intends to approve the Agreement either prior to or at the same time as it considers authorization to proceed with the construction for Pure Water phase 1. The current schedule for Pure Water construction authorization approval is as follows: • September 6, 2018 Metro Commission & Metro Wastewater JPA • September 13, 2018City of San Diego Environment Committee • September 19, 2018 Metro Technical Advisory Committee • October 2, 2018 City of San Diego City Council SUMMARY AND CONCLUSION: The NPDES permit for the PLWTP submitted in 2015 included a goal of offloading 83 million gallons a day of wastewater and turning it into potable drinking water by the year 2035. This project is titled Pure Water San Diego. The PLWTP offloading, as planned, will bring the solids discharged from the plant down to a level that would be equivalent to that of converting the plant to secondary treatment. Federal legislation 2018-09-18 Agenda Packet Page 80 P a g e | 6 language to protect PLWTP from having to convert to the secondary treatment level has been agreed to by local stakeholders including environmental groups, but has not yet been approved at the Federal level. The 1998 Regional Wastewater Disposal Agreement between the City of San Diego and the PAs governs the planning, capacity rights and cost allocation of wastewater facilities in the Metro System. The 1998 Agreement did not contemplate the complexities of the Pure Water program and must be amended to adequately address the proposed facilities, allocation of costs and long-term financial protection of wastewater rate payers. The City of San Diego and the PAs have been working since 2014 on deal points for the Pure Water program and those deal points have been incorporated into an Amended and Restated Wastewater Disposal Agreement. The Amended and Restated Agreement will be considered by the Metro Commission/Metro JPA and ultimately sent to the City of San Diego for consideration and approval. Therefore, staff recommends that the City Council provide direction to the Metro Commission/Metro JPA Representative to support the Amended and Restated Regional Wastewater Disposal Agreement at the Metro Commission/Metro JPA meeting, authorize the City Attorney to make nonsubstantive changes to the Agreement and, authorize the Mayor to sign the final Agreement after approval by the City of San Diego City Council. DECISION-MAKER CONFLICT Staff has reviewed Councilmembers’ property holdings and has determined that the effect of the decision contemplated by this action on public officials’ interest in real property would also affect 10% or more of all property owners in the public officials’ jurisdiction, or 5,000 property owners in the jurisdiction of the officials’ agency, in substantially the same manner. Therefore, pursuant to California Code of Regulations (§18707, §18707.1), the Public Generally Exception applies. Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The Regional Wastewater Disposal Agreement between the City of San Diego and the Metro JPA and the Pure Water Program support the Operational Excellence and Healthy Community goals. The agreement and program provide a fiscally sustainable agreement with the City of San Diego that protects the environment from pollution. CURRENT-YEAR FISCAL IMPACT The City’s sewer enterprise fund is self-supporting and funds the operations, maintenance, repair, and rehabilitation and expansion of the system, and treatment. The utility is primarily supported by user fees, which provide a sustainable annual funding source. The current rate plan generates sufficient revenue to fund the financial obligations for wastewater service and equitably recover costs from customers. The current rate plan expires on June 30, 2019, and will be updated to incorporate the pro-rata share of the Pure Water Program costs as determined by the Metro JPA. 2018-09-18 Agenda Packet Page 81 P a g e | 7 ONGOING FISCAL IMPACT The five-year financial plan adopted by the City Council for the period of FY13/14 through FY18/19 was developed using a robust and dynamic cash flow model that mirrors the utility’s accounting and operations. The model did contemplate potential changes in operating costs – specifically, increases in treatment costs related to the upgrade of City of San Diego’s Point Loma Wastewater Treatment Plant (PLWTP). In FY18/19, the Engineering & Capital Projects Department will embark on an updated sewer rate report that will be completed in time for the July 1, 2019 deadline to adopt a new sewer rate. The updated Pure Water Program costs and revenue projections will be included in the updated sewer rate report to Council in late FY18/19. ATTACHMENTS 1. Regional Disposal Agreement dated 1998 2.Council Resolution # 18968 dated April 21, 1998. 3. Draft Amended Regional Disposal Agreement dated July 31, 2018 4. Comparison of the 1998 Agreement vs. Amended and Restated Agreement Staff Contact: Francisco X. Rivera P.E., T.E. Principal Civil Engineer 2018-09-18 Agenda Packet Page 82 2018-09-18 Agenda Packet Page 83 2018-09-18 Agenda Packet Page 84 2018-09-18 Agenda Packet Page 85 2018-09-18 Agenda Packet Page 86 2018-09-18 Agenda Packet Page 87 2018-09-18 Agenda Packet Page 88 2018-09-18 Agenda Packet Page 89 2018-09-18 Agenda Packet Page 90 2018-09-18 Agenda Packet Page 91 2018-09-18 Agenda Packet Page 92 2018-09-18 Agenda Packet Page 93 2018-09-18 Agenda Packet Page 94 2018-09-18 Agenda Packet Page 95 2018-09-18 Agenda Packet Page 96 2018-09-18 Agenda Packet Page 97 2018-09-18 Agenda Packet Page 98 2018-09-18 Agenda Packet Page 99 2018-09-18 Agenda Packet Page 100 2018-09-18 Agenda Packet Page 101 2018-09-18 Agenda Packet Page 102 2018-09-18 Agenda Packet Page 103 2018-09-18 Agenda Packet Page 104 2018-09-18 Agenda Packet Page 105 2018-09-18 Agenda Packet Page 106 2018-09-18 Agenda Packet Page 107 2018-09-18 Agenda Packet Page 108 2018-09-18 Agenda Packet Page 109 2018-09-18 Agenda Packet Page 110 2018-09-18 Agenda Packet Page 111 2018-09-18 Agenda Packet Page 112 2018-09-18 Agenda Packet Page 113 2018-09-18 Agenda Packet Page 114 2018-09-18 Agenda Packet Page 115 2018-09-18 Agenda Packet Page 116 2018-09-18 Agenda Packet Page 117 2018-09-18 Agenda Packet Page 118 2018-09-18 Agenda Packet Page 119 2018-09-18 Agenda Packet Page 120 2018-09-18 Agenda Packet Page 121 2018-09-18 Agenda Packet Page 122 2018-09-18 Agenda Packet Page 123 2018-09-18 Agenda Packet Page 124 2018-09-18 Agenda Packet Page 125 2018-09-18 Agenda Packet Page 126 2018-09-18 Agenda Packet Page 127 2018-09-18 Agenda Packet Page 128 2018-09-18 Agenda Packet Page 129 2018-09-18 Agenda Packet Page 130 2018-09-18 Agenda Packet Page 131 2018-09-18 Agenda Packet Page 132 2018-09-18 Agenda Packet Page 133 2018-09-18 Agenda Packet Page 134 2018-09-18 Agenda Packet Page 135 2018-09-18 Agenda Packet Page 136 2018-09-18 Agenda Packet Page 137 2018-09-18 Agenda Packet Page 138 2018-09-18 Agenda Packet Page 139 2018-09-18 Agenda Packet Page 140 2018-09-18 Agenda Packet Page 141 2018-09-18 Agenda Packet Page 142 2018-09-18 Agenda Packet Page 143 2018-09-18 Agenda Packet Page 144 2018-09-18 Agenda Packet Page 145 2018-09-18 Agenda Packet Page 146 2018-09-18 Agenda Packet Page 147 2018-09-18 Agenda Packet Page 148 2018-09-18 Agenda Packet Page 149 2018-09-18 Agenda Packet Page 150 2018-09-18 Agenda Packet Page 151 2018-09-18 Agenda Packet Page 152 2018-09-18 Agenda Packet Page 153 2018-09-18 Agenda Packet Page 154 2018-09-18 Agenda Packet Page 155 2018-09-18 Agenda Packet Page 156 2018-09-18 Agenda Packet Page 157 2018-09-18 Agenda Packet Page 158 2018-09-18 Agenda Packet Page 159 2018-09-18 Agenda Packet Page 160 2018-09-18 Agenda Packet Page 161 2018-09-18 Agenda Packet Page 162 2018-09-18 Agenda Packet Page 163 2018-09-18 Agenda Packet Page 164 2018-09-18 Agenda Packet Page 165 2018-09-18 Agenda Packet Page 166 2018-09-18 Agenda Packet Page 167 2018-09-18 Agenda Packet Page 168 2018-09-18 Agenda Packet Page 169 2018-09-18 Agenda Packet Page 170 2018-09-18 Agenda Packet Page 171 2018-09-18 Agenda Packet Page 172 2018-09-18 Agenda Packet Page 173 2018-09-18 Agenda Packet Page 174 2018-09-18 Agenda Packet Page 175 2018-09-18 Agenda Packet Page 176 2018-09-18 Agenda Packet Page 177 2018-09-18 Agenda Packet Page 178 2018-09-18 Agenda Packet Page 179 2018-09-18 Agenda Packet Page 180 2018-09-18 Agenda Packet Page 181 2018-09-18 Agenda Packet Page 182 2018-09-18 Agenda Packet Page 183 2018-09-18 Agenda Packet Page 184 2018-09-18 Agenda Packet Page 185 2018-09-18 Agenda Packet Page 186 2018-09-18 Agenda Packet Page 187 2018-09-18 Agenda Packet Page 188 2018-09-18 Agenda Packet Page 189 2018-09-18 Agenda Packet Page 190 2018-09-18 Agenda Packet Page 191 2018-09-18 Agenda Packet Page 192 2018-09-18 Agenda Packet Page 193 2018-09-18 Agenda Packet Page 194 2018-09-18 Agenda Packet Page 195 2018-09-18 Agenda Packet Page 196 2018-09-18 Agenda Packet Page 197 2018-09-18 Agenda PacketPage 198 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE AMENDED AND RESTATED WASTEWATER DISPOSAL AGREEMENT AND DIRECTING THE METRO COMMISSION/METRO JPA REPRESENTATIVE TO SUPPORT THE SAME AT METRO COMMISSION/METRO JPA MEETINGS WHEREAS, the City of Chula Vista has a strategic goal to continue to improve high quality municipal services; WHEREAS, the NPDES permit for the Point Loma Wastewater Treatment Plant submitted in 2015 included a goal of offloading 83 million gallons per day of wastewater and turning it into potable drinking water by 2035. This project is titled Pure Water San Diego; WHEREAS, the Point Loma offloading as planned will bring the solids discharged from the plant down to a level that would be equivalent to that of converting the plant to secondary treatment; WHEREAS, wording for Federal legislation to protect Point Loma from having to convert to the secondary treatment level has been agreed to by local stakeholders including environmental groups, but has not yet been approved at the Federal level; WHEREAS, the 1998 Regional Wastewater Disposal Agreement between the City of San Diego and the participating agencies governs the planning, capacity rights, and cost allocation of wastewater facilities in the Metropolitan Sewerage System; WHEREAS, the 1998 Regional Wastewater Disposal Agreement did not contemplate the complexities of the Pure Water program and needs to be amended to adequately address the proposed facilities, allocation of costs, and long-term financial protection of wastewater rate payers; WHEREAS, staff from the City of San Diego and the participating agencies have been working since 2014 on deal points for the Pure Water program and those deal points have been incorporated into an Amended and Restated Regional Wastewater Disposal Agreement Between the City of San Diego and the Participating Agencies in the Metropolitan Sewerage System; and WHEREAS, the Amended and Restated Regional Wastewater Disposal Agreement will be further considered by the Metro Commission and Metro Wastewater JPA and the San Diego City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it approves the Amended and Restated Regional Wastewater Disposal Agreement Between the City of San Diego and the Participating Agencies, in the form presented, with such modifications as may be required or approved by the City Attorney, a copy of which shall be 2018-09-18 Agenda Packet Page 199 Resolution No. Page 2 kept on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute the same. BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that authorizes and directs the Metro Commission/Metro JPA representative to support the Amended and Restated Wastewater Disposal Agreement at Metro Commission/Metro JPA meetings. Presented by William S. Valle Director of Engineering and Capital Projects Approved as to form by Glen R. Googins City Attorney 2018-09-18 Agenda Packet Page 200 P a g e | 1 September 18, 2018 File ID: 18-0379 TITLE A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FORM OF A MASTER ENCROACHMENT AGREEMENT FOR THE INSTALLATION OF NETWORK FACILITIES WITHIN THE PUBLIC RIGHT-OF-WAY B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHAPTER 11 (ENGINEERING FEES) OF THE CITY’S MASTER FEE SCHEDULE TO ESTABLISH NETWORK FACILITY ENCROACHMENT PERMIT FEES RECOMMENDED ACTION Council adopt the resolutions. SUMMARY The proposed Master Encroachment Agreement for the construction of network facilities within the Public Right-of-Way would establish an Agreement between the City and various communications companies for the construction of network facilities within the City to provide communications services. An amendment of the City’s Master Fee Schedule to establish Network Facility Encroachment Permit fees is also recommended. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity, approval of an Agreement, for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060 (c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION Over the past year, a number of communications companies have approached the City of Chula Vista with the desire to deploy and/or expand their network facilities within the Public Right-of-Way in order to provide better service to their customers in the area. 2018-09-18 Agenda Packet Page 201 P a g e | 2 These companies require the installation of new cables, conduits, access manholes, pedestals, boxes, and other equipment in the Public Right-of-Way in order to provide superior quality service which now has higher data and video demands from its customers. As technology advances, the community’s expectation for faster and more reliable speeds also increases. Communications companies must deploy new or upgrade existing infrastructure to meet these new demands. Some of these new network demands include: Expansion of the Smartphone market Growing use of wireless sensors Future deployment of connected and autonomous vehicles Advanced traffic management systems Impending deployment of 5G technologies and more Recognizing that encroachments into the Public Right-of-Way by these companies exist, and/or may be needed in the future, staff wishes to adopt a process and template Agreement that will ensure that the City operates fairly and consistently with the various communications companies. Permit Fees As proposed, Resolution B amends Chapter 11 (Engineering Fees) of the City’s Master Fee Schedule to establish Network Facility Encroachment Permit fees. A full cost recovery fee withan initial deposit of $3,000 is recommended. The deposit amount of $3,000 is based on the estimated reasonable cost of providing the associated services, as calculated using the most recent Development Services Fee Study hourly rates (see Attachment 2 for Cost of Service Analysis). DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This resolution supports Economic Vitality and Connected Community goals in the Strategic Plan since this Agreement will facilitate the processing of permits associated with the construction of network facilities leading to construction that will give usa much more connected City. In addition, construction of new and/or upgraded network facilities throughout the City will assist in the delivery of the Smart City Action Plan’s Goal 1, Objective 1.2 which is to Ensure Universal Internet and Technology Access for All Communities. 2018-09-18 Agenda Packet Page 202 P a g e | 3 CURRENT-YEAR FISCAL IMPACT Approval of the resolution represents no impact to the General Fund as all staff costs associated with any application and/or permit will be reimbursed from deposit accounts provided by applicants. ONGOING FISCAL IMPACT All staff costs associated with any application and/or permit will be reimbursed from deposit accounts provided by applicants. ATTACHMENT 1. City of Chula Vista Master Encroachment Agreement Template 2.Cost of Service Analysis Staff Contact: Eddie Flores, City Traffic Engineer, Engineering & Capital Projects Department 2018-09-18 Agenda Packet Page 203 MASTER ENCROACHMENT AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND _____________________ FOR THE INSTALLATION OF NETWORK FACILITIES WITHIN PUBLIC RIGHT-OF-WAY This Agreement (“Agreement”) dated as of _____________________ ______, 2018 (“Effective Date”) is entered into by and between the CITY OF CHULA VISTA, a California municipal corporation (“CITY”) and _____________________, a _____________________ (“ENCROACHER”). RECITALS WHEREAS, ENCROACHER represents to City that (i) it is authorized to provide Communications Services (as defined herein) in the state of California pursuant to a Certificate of Public Convenience and Necessity (CPCN) issued by the Public Utilities Commission of the State of California and (ii) it is a wireline telephone company that is authorized to use public roads and highways pursuant to Public Utilities Code Section 7901; and WHEREAS, CITY owns, operates, and maintains the Public Right-of-Way (as defined herein) within CITY; and WHEREAS, ENCROACHER desires to construct Network Facilities (as defined herein) within the Public Right-of-Way within CITY to provide Communications Services; and WHEREAS, pursuant to Cal. Const., art. XI, § 7, CITY has the authority to make and enforce all local, police, sanitary, and other ordinances and regulations not in conflict with general laws within its jurisdictional limits, including without limitation the authority to regulate the terms and conditions for the use of Public Right-of-Way for the construction, installation, and maintenance of Network Facilities by ENCROACHER. NOW, THEREFORE, CITY and ENCROACHER agree as follows: SECTION 1 DEFINITIONS 1.1 “Network Facilities or Facilities” means any and all cables, lines, conduits, access manholes, handholes, pedestals, boxes, and other similar equipment and devices owned or leased by ENCROACHER. The term does not include antennas, cell towers, other wireless facilities or new utility poles. 1.2 “Public Right-of-Way”or “Public Rights-of-Way”means the full width of the right of-way of any street, as defined in the California Vehicle Code used by the general public. 1.3 “Communications Services”means services that ENCROACHER is authorized to offer and/or provide pursuant to any applicable law or CPCN, including its existing CPCN 2018-09-18 Agenda Packet Page 204 -2- _______________ which authorizes ENCROACHER to provide facilities-based ___________________________. 1.4 “Video Services”means services provided pursuant to any applicable California Video Franchise Certificate issued by the California Public Utilities Commission pursuant to the Digital Infrastructure and Video Competition Act (Public Utilities Code Section 5800 et seq.) and following California Public Utilities Commission decisions pertaining to video services. SECTION 2 RESERVATIONS, LIMITATIONS, AND CONDITIONS 2.1 CITY reserves all rights it may have now or in the future to legally regulate, impose or collect any tax, charge, or fee, or otherwise condition the use of the Network Facilities or Communication Services, or any related activities and services, identified in this Agreement. CITY entering into this Agreement is not a waiver of and is without prejudice to any right CITY may have now or in the future to regulate ENCROACHER or impose or collect taxes, charges, or fees on ENCROACHER. CITY entering into this Agreement does not affect CITY’s power or authority to impose or collect any tax, fee, or charge on users or providers of the services to be provided by ENCROACHER. ENCROACHER is and will be subject to all taxes, fees, and charges that CITY lawfully imposes on the Faculties or Communication Services, or any related activities and services, in the future. Nothing herein is intended to impose regulations or conditions on ENCROACHER that CITY is preempted from imposing by state or federal law. 2.2 Nothing in the Agreement shall be construed as granting or creating any franchise rights. 2.3 ENCROACHER represents and warrants that it has obtained and continues to maintain all authorizations, certifications, permits, and regulatory approvals necessary to provide the Communications Services and related services as required by federal and state laws or regulations. ENCROACHER’s use of the Public-Right-of-Way under this Agreement is expressly conditioned upon ENCROACHER obtaining and maintaining all current and future authorizations, certifications, permits, and regulatory approvals necessary to provide Communications Services and related services as required by federal, state, and local laws, including but not limited to maintaining its existing CPCN and status as a Competitive Local Carrier (CLC). 2.4 All rights and benefits granted under this Agreement are subject and subordinate to the prior and continuing right of CITY and its successors or assigns to use all of the Public Right-of-Way in the performance of its governmental duties and police powers including but not limited to, public use as a street and for the purpose of laying, installing, maintaining, repairing, protecting, replacing and removing sanitary sewers, water mains, storm drains, gas mains, poles, overhead and underground electrics, and telephone lines, streetlights, cable television, and other utility and municipal uses together with appurtenances thereof and with right of ingress and egress, along, over, across and in said Public Right-of-Way. ENCROACHER has a duty to remove, relocate, and rearrange all facilities owned or leased by ENCROACHER, controlled by ENCROACHER, or otherwise installed pursuant to this Agreement within a time frame set forth 2018-09-18 Agenda Packet Page 205 -3- by CITY (subject to force majeure and events beyond the control of ENCROACHER) at ENCROACHER’s own expense (except as otherwise set forth in this Agreement) in order to accommodate any CITY uses, as further provided in this Agreement and applicable law. SECTION 3 SCOPE OF USE OF PUBLIC RIGHT-OF-WAY 3.1 CITY grants an encroachment right to ENCROACHER, subject to all reservations, covenants, limitations, and conditions contained in this Agreement and provided by law, to construct, install, maintain, operate, and remove those Network Facilities, as identified with particularity on Exhibit “A”, at those specific locations within Public Right-of-Way, as identified with particularity on Exhibit “B”, to provide Communications Services, subject to obtaining all required permits and regulatory approvals. 3.2 ENCROACHER is not permitted to commence installation of Network Facilities until ENCROACHER has first obtained a permit to do so in accordance with this Agreement and applicable law. Before ENCROACHER applies for any new permits after the Effective Date of this Agreement, ENCROACHER must submit: (i) a comprehensive master plan (“Master Plan”) showing at a minimum the location and specific details (i.e., underground depth, above-ground height, etc.) of all Network Facilities presently installed within the City’s limits; (ii) a Master Plan showing a high-level design of all Network Facilities presently intended to be installed over the five-year period from the Effective Date; and (iii) the Bond (as defined in Section 9). ENCROACHER is required to provide an updated Master Plan annually, showing, to the extent applicable, any change to the Master Plan submitted in the prior year. CITY’s issuance of any permit pursuant to this Agreement is expressly conditioned on and subject to ENCROACHER’s full compliance with the terms and conditions of this Agreement, including but not limited all representations herein, and compliance with all local, state, and federal laws and regulations. 3.3 ENCROACHER is prohibited from installing or erecting any facilities or apparatus in or on other public property, places, or Public Rights-of-Way, or within any privately owned area within CITY which has not yet become a public street but is designated or delineated as a proposed public street on any tentative subdivision or parcel map approved by CITY, except those installed or erected upon public utility facilities now existing without obtaining the prior written approval of the City Engineer. 3.4 ENCROACHER is not authorized to place any facilities other than Network Facilities in the Public Right-of-Way, without first obtaining written authorizations and required permits (including any necessary franchises) from the CITY. 3.5 ENCROACHER agrees to comply with any lawful provision that the CITY may adopt in the future requiring ENCROACHER to obtain a franchise or other authorization, and ENCROACHER agrees that CITY may require ENCROACHER to do so as a condition of the continued effectiveness of this Agreement. The City Engineer and Director of Development Services will, subject to applicable laws, be responsible for determining what written authorization, agreement, and/or permit is required. ENCROACHER agrees that once a written 2018-09-18 Agenda Packet Page 206 -4- authorization, agreement, and/or permit is determined to be required, ENCROACHER agrees to first apply or seek the same before challenging the requirement. 3.6 This Agreement does not authorize use of any property other than the Public Rights- of-Way. Any use of any other CITY-owned or CITY-controlled property, including but not limited to poles and conduits and other personal property, will require the parties to enter into a separate written agreement, which the City may, in its sole discretion, decline except as may be otherwise required by applicable federal or California law. 3.7 The use of any Public Right-of-Way or other interest or property under this Agreement will not create or vest in ENCROACHER any ownership or other interest in the Public Right-of-Way, streets, or any other property or interest of the CITY. This Agreement is not a grant by the CITY of any property interest to ENCROACHER. 3.8 CITY’s grant of any right or benefit in this Agreement is made subject to all easements, restrictions, conditions, covenants, encumbrances, and claims of title which may affect the Public Right-of Way, and ENCROACHER understands and agrees that it will obtain such permission as may be necessary consistent with any other existing rights at its own costs and expense. No reference herein to a “Public Right-of-Way” shall be deemed to be representation or guarantee by CITY that its interest or other rights to control the use of such property is sufficient to permit its use for such purposes, and ENCROACHER shall be deemed to gain only those rights to use the property as the CITY may have the undisputed right and authority to give, and which do not interfere with CITY’s needs for uses within the Public Right- of-Way. In the event of any conflict, the use of the subject Public Right-of-Way by ENCROACHER is secondary and subordinate to the rights and needs of the CITY. 3.9 This Agreement is for the non-exclusive use of the Public Rights-of-Way. By executing this Agreement, CITY does not agree to restrict the use of the Public Rights-of-Way in any part of the CITY by any person in the same business, a related business, or a competing business as ENCROACHER. 3.10 If CITY is not prohibited from charging for use of the Public Rights-of-Way by ENCROACHER by state or federal law, CITY may do so. CITY will notify ENCROACHER if it intends to charge for use of the Public Right-of-Way. Upon receipt of such notice, ENCROACHER agrees to meet-and-confer with CITY to negotiate the amount and type of consideration due to CITY for such use. Until the parties agree upon the amount and type of consideration due to CITY, or in the event the parties fail to agree upon the amount and type of consideration due to CITY, ENCROACHER agrees to pay CITY the greater of the following: (i) five percent (5%) of Gross Annual Receipts (as hereinafter defined) of ENCROACHER within the corporate limits of the CITY, or (ii) the highest rate permissible under applicable laws. The phrase “Gross Annual Receipts” shall mean all gross operating revenues and compensation received by ENCROACHER from the sale, lease, license, permit, and/or use of the Network Facilities, including all related operations and services of the Network Facilities, to ENCROACHER’s customers within the corporate limits of the City. 2018-09-18 Agenda Packet Page 207 -5- SECTION 4 CONSTRUCTION AND MAINTENANCE STANDARDS 4.1 ENCROACHER and its agents, employees, contractors, subcontractors or any other person or entity acting under ENCROACHER’s direction or control (each an “ENCROACHER PARTY”; collectively “ENCROACHER PARTIES”) agree to perform and complete all construction, operation, repair, and maintenance of Network Facilities or other facilities pursuant to this Agreement in accordance with all applicable federal, state, and local laws and regulations, including but not limited to all zoning laws, construction codes, and CITY’s standard specifications and details, as the same may exist now, or be hereafter issued, amended, or revised; and any supplements thereto or revisions of this Agreement, and any franchise or other authorization now or in the future. Nothing in this Agreement prevents the CITY from establishing additional or stricter conditions (even with respect to the matters specified in those sections), and requiring the ENCROACHER PARTIES to comply with the same. In the event of a conflict among codes and standards, the most stringent code or standard will apply, as determined in the sole judgment of the City Engineer consistent with applicable law. 4.2 All ENCROACHER PARTIES are required to employ reasonable care for all activities undertaken pursuant to this Agreement. All ENCROACHER PARTIES are required to install, maintain, and use commonly accepted methods and devices for preventing failures and accidents that are likely to cause damage, injury, or nuisance to the CITY or the public. 4.3 The ENCROACHER PARTIES are required to construct, operate, repair, and maintain its Network Facilities in a manner that does not endanger any persons or cause any damage to property. The ENCROACHER PARTIES are required to construct, operate, repair, and maintain the Network Facilities in a manner that does not interfere with CITY’s municipal operations. The ENCROACHER PARTIES are required not to interfere or obstruct the Public Right-of-Way or legal rights of any property owner or to unreasonably hinder or obstruct pedestrian or vehicular traffic, or otherwise incommode the public’s use of the Public Right-of- Way. The ENCROACHER PARTIES are required to place all facilities in strict conformance with the plans and drawings approved in writing by CITY, consistent with applicable law. The ENCROACHER PARTIES are required not to place facilities, equipment, or fixtures where they will interfere with any gas, electric, telephone, telecommunications, water, sewer, or other utility facilities or otherwise obstruct or hinder in any manner such entity’s use of any Public Right-of- Way. ENCROACHER is required to repair and restore all damage to any Public Rights-of-Way, public property, or private property that is disturbed or damaged by any ENCROACHER PARTY during the construction, repair, replacement, relocation, operation, maintenance, or construction of a Network Facility. ENCROACHER is required to repair and restore all damage to a condition equal to or better than that which existed prior to the damage, and also to a condition that is compliant with all applicable laws. If the City Engineer reasonably determines that repair and restoration of damage to any facility or improvement within the Public Right-of- Way is insufficient to correct such damage, ENCROCHER will be required to replace such damaged facility and/or improvement. ENCROACHER is required to make all repairs, restorations, and replacements by no later than fourteen (14) calendar days after causing such damage. The City Engineer may agree to a longer period where necessary to complete such repairs, restorations, or replacements. 2018-09-18 Agenda Packet Page 208 -6- 4.4 If Public Right-of-Way to be used by ENCROACHER has preexisting installation(s) placed in the Right-of-Way, ENCROACHER assumes the responsibility to verify the location of the preexisting installation and notify, consistent with applicable law, CITY and any third party owner of ENCROACHER’s proposed installation. ENCROACHER will be responsible for all costs of any work required by any third party owner or CITY to provide adequate space or required clearance to accommodate ENCROACHER’s installation. CITY is under no obligation to move its existing utilities out of the way to accommodate ENCROACHER’s Network Facilities. 4.5 Within ten business (10) days (or longer period as permitted by CITY) after its receipt of a written request from CITY, ENCROACHER is required, at ENCROACHER’s sole cost and expense, to expose its subsurface Network Facility by potholing (digging a test hole) to a depth of one foot (1’) below the bottom of such facility. If ENCROACHER fails to perform the potholing, CITY may, but is not obligated to, proceed on ENCROACHER’s account as provided in this Agreement and ENCROACHER will promptly reimburse CITY, in addition to any other reimbursements provided for in this Agreement, for the cost of the reimbursement, plus a 15 percent (15%) administrative overhead charge. ENCROACHER will also hold harmless, defend, and indemnify CITY and its officers, employees, agents, and contractors for any loss or damages resulting from the CITY’s performance of the required work. These obligations are in addition to, not in lieu of, any other hold harmless, defense, or indemnity obligations existing at contract or at law. 4.6 Any contractor or subcontractor used by ENCROACHER for the construction, installation, operation, maintenance, or repair of any part or aspect of the Network Facility must be properly licensed under the laws of the State of California and all applicable local ordinances. Any contractor or subcontractor used by ENCROACHER has the same obligations with respect to its work as ENCROACHER has under this Agreement and applicable law as if the work were performed by ENCROACHER. ENCROACHER is responsible for the performance of the work of contractors and subcontractors consistent with the requirements of this Agreement and applicable law, including all acts or omissions of contractors or subcontractor of every tier. ENCROACHER is required to implement a quality control program to monitor that the work is properly performed. This section is not meant to alter tort liability of ENCROACHER to third parties. 4.7 ENCROACHER PARTIES agree to keep the Network Facilities in good and safe condition and free from any nuisance to the City or the public. 4.8 ENCROACHER will identify the Network Facilities installed in each Public Right- of-Way by means of an identification method mutually agreed upon by the parties, or as directed by the City Engineer if the parties cannot mutually agree on an identification method. ENCROACHER’s identification must be detectable from ground level without opening the street. To prevent conflicts between ENCROACHER’s Network Facilities and public facilities in the same location, ENCROACHER must notify Underground Service Alert of the location of the facilities for the benefit of future construction projects which may need to be aware of the presence of the Network Facilities within the Public Right-of-Way. ENCROACHER’s compliance with, or failure to comply with its requirement to notify Underground Service Alert 2018-09-18 Agenda Packet Page 209 -7- will not create any claim or right against the CITY, and ENCROACHER will hold harmless, defend, and indemnify CITY and its officers, employees, and agents from any and all costs for failure to comply with this Section. These obligations are in addition to, not in lieu of, any other hold harmless, defense, or indemnity obligations existing at contract or at law. SECTION 5 SERVICE CHANGES 5.1 ENCROACHER hereby represents and warrants that: 1) it has any and all authorizations and approvals from state and federal regulatory agencies including the California Public Utilities Commission and the Federal Communications Commission as are necessary for the activities and Network Facilities contemplated by the Agreement, and is in compliance in all material respects with its obligations under such authorizations; 2) the type of service offered through the Network Facilities in the Public Right-of-Way consists solely of Communications Services; 3) it does not offer Video Services; 4) Network Facilities will be installed only within the Public Rights-of-Way (underground within conduit or aerial on poles); and 5) it will not construct or install any new cell towers, new utility poles, or antennas unless it has obtained written authorization to do so. 5.2 The terms of this Agreement are based on the type of equipment comprising the Network Facilities, and the types of Communications Services which ENCROACHER provides via the Network Facilities installed in the Public Right-of-Way. ENCROACHER acknowledges that any change in service or change in the law may increase the CITY’s regulatory authority over such services, product, and ENCROACHER’s use of Public Right-of-Way, and may require modification of this Agreement, and require ENCROACHER to obtain additional authorizations consistent with the requirements of an existing or hereinafter-enacted CITY ordinance regulating such services. 5.3 If ENCROACHER is authorized by the California Public Utilities Commission to provide additional and/or alternative services, including but not limited to Video Services, and intends to offer such services to customers within the corporate limits of CITY, ENCROACHER is required to notify CITY in writing, as soon as practicable, after receipt of written approval to provide such services, and to comply with CITY’s local ordinances. SECTION 6 TAXES 6.1 ENCROACHER agrees that it will be solely responsible for the payment of any and all lawful taxes, fees, and assessments relating to its use and maintenance of the Network Facilities including but not limited to all taxes, fees, and assessments listed in ENCROACHER’s CPCN issued by the California Public Utilities Commission. 6.2 If applicable, ENCROACHER is required to collect and distribute to CITY the Utility Users Tax from its users of intrastate telecommunications services within the CITY as may hereinafter be adopted, if ENCROACHER’s Network Facilities are used to provide revenue producing intrastate telecommunications services, provided that such tax complies with state and federal law. 2018-09-18 Agenda Packet Page 210 -8- 6.3 At CITY’s request, ENCROACHER will pay the cost of an auditor to conduct an audit of taxes paid or owed under this Agreement, if such audit determines that ENCROACHER under paid by more than two and one-half percent (2.5%) of such amounts owed. If that audit discloses an underpayment, ENCROACHER shall pay such amounts discovered by the auditor within sixty (60) days of receipt of the audit report. ENCROACHER shall pay such amounts discovered by the auditor within sixty (60) days of receipt of the audit report. ENCROACHER must provide such records to CITY as CITY may require to confirm compliance with this requirement. Audits shall not be conducted more than once every two (2) years. 6.4 Pursuant to Section 107.6 of the California Revenue and Taxation Code, the CITY hereby advises, and ENCROACHER understands and agrees that should ENCROACHER’s use of Public Rights-of-Way create a possessory interest subject to property taxation, ENCROACHER shall be subject to the payment of property taxes levied on such interest. SECTION 7 REMOVAL AND RELOCATION 7.1 In the event of an emergency, or where Network Facilities create or are contributing to an imminent danger to health, safety, or property, as determined by CITY in CITY’s sole discretion, CITY may remove, relay, or relocate any or all parts of those Network Facilities without prior notice; however, CITY shall make reasonable efforts to provide prior notice. 7.2 ENCROACHER is required to promptly relocate its Network Facilities and related facilities to accommodate projects or needs of CITY, as determined by CITY in CITY’s sole discretion, or other government agencies and third parties who are authorized to use the Public Rights-of-Way. If ENCROACHER is required to relocate its Network Facilities for any non- governmental third party and for reasons other than the above, the reasonable cost of the relocation will be borne by the third party except where (i) the Network Facilities must be relocated because it was not properly installed or maintained by ENCROACHER, or was installed without obtaining necessary authorizations; or (ii) state or federal law requires otherwise. 7.3 In the event all or any portion of Public Right-of-Way occupied by Network Facilities is needed by CITY for governmental or municipal purposes (including without limitation the construction, maintenance, or operation of any other CITY underground or aboveground facilities), or in the event of the existence of said Network Facilities are considered detrimental to governmental or municipal activities, including without limitation any interference with CITY construction projects, or being in conflict vertically and/or horizontally with any proposed CITY installation, ENCROACHER is required to remove and relocate those Network Facilities to such other location or locations on Public Right-of-Way as may be designated by CITY, without cost or expense to CITY. Said removal or relocation must be completed within ninety (90) calendar days of notification by CITY, except for force majeure events or events beyond the reasonable control of ENCROACHER. 7.4 ENCROACHER is required, by a time specified by the CITY (subject to force majeure events or events beyond the reasonable control of ENCROACHER), to protect, support, 2018-09-18 Agenda Packet Page 211 -9- temporarily disconnect, relocate, and/or remove any of its property and/or Facilities when required by CITY or any other governmental entity by reason of traffic conditions; public safety; Public Rights-of-Way construction; Public Rights-of-Way maintenance or repair (including resurfacing or widening); change of Public Rights-of-Way grade; construction, installation, or repair of sewers, drains, water pipes, power lines, signal lines, tracks, or any other type of government-owned communication system, public work, or improvement; any government- owned utility; Public Rights-of-Way vacation; or for any other purpose where the work involved would be aided by the removal or relocation of the Network Facility. 7.5 In those areas and portions of the CITY where the transmission or distribution facilities of either a public utility providing telephone service, a provider of cable services as such term is defined in 47 U.S.C. § 522, or those of the utility providing electric service are underground or hereafter may be placed underground, then ENCROACHER must likewise construct, operate, and maintain all of its Network Facilities underground. The CITY shall not in any manner be responsible for any costs incurred by ENCROACHER in placing ENCROACHER’s facilities underground. 7.6 If any portions of the Network Facilities covered under this Agreement are no longer used by ENCROACHER, or are abandoned for a period in excess of one (1) year, ENCROACHER will notify CITY and either promptly vacate and remove the facilities at ENCROACHER’s own expense or, upon prior written consent of the City Engineer, may abandon some or all of the facilities in place. 7.7 When removal or relocation is required under this Agreement, ENCROACHER must, after the removal or relocation of the Network Facilities, at ENCROACHER’s sole cost, repair and return the Public Right-of-Way in which the Network Facilities were located to a safe and satisfactory condition equal to or better than the condition of the Public Right-of-Way prior to the start of such removal or relocation work, as determined by the City Engineer, in accordance with the construction-related conditions and specifications as established by CITY consistent with applicable law. Before proceeding with removal or relocation work, ENCROACHER must obtain an encroachment permit, construction permit (if applicable), and all other necessary permits from CITY at ENCROACHER’s own cost. Should ENCROACHER remove the Network Facilities from the Public Right-of-Way, ENCROACHER must, within ten (10) calendar days after such removal, give notice thereof to CITY specifying the Right-of-Way affected and the location thereof as well as the date of removal. 7.8 In the event that the Network Facilities are not removed or relocated within the timelines specified in any CITY notification, subject to force majeure events or events beyond the reasonable control of ENCROACHER, CITY may, but is not obligated to, remove or relocate the Network Facilities at ENCROACHER’s sole cost. In such event, ENCROACHER will reimburse CITY for all actual costs incurred to repair such damage within ten (10) calendar days after ENCROACHER receives the CITY’s demand for payment. ENCROACHER’s failure to timely make such payment will constitute a material breach of this Agreement. SECTION 8 PERMITS AND FEES 2018-09-18 Agenda Packet Page 212 -10- 8.1 ENCROACHER is required to obtain an encroachment permit (and other permits as may be required by CITY) for all work and each project within the Public Right-of-Way. ENCROACHER is required to furnish detailed plans of the work and other such information as required by the City Engineer and to pay all permit fees imposed by CITY for the placement, installation, repair, or upgrading of any communications facilities including but not limited to lines, poles, antennas, or other improvements or encroachments by a telephone corporation, which includes, without limitation, fees for processing, field marking, engineering, inspection, and other fees prior to issuance of permit in accordance with the rates in effect at the time of payment. 8.2 Any encroachment permit must set forth the description of the Network Facilities to be installed and the Public Right-of-Way in which such facilities are proposed to be located. CITY may establish any lawful conditions and specifications in permits to be obtained by ENCROACHER in addition to those in this Agreement. Following construction, ENCROACHER is required to provide as-builts of the facilities to CITY in a format determined by the City Engineer, which may include, without limitation, a native electronic format compatible with CITY’s electronic data management software, and further notify Underground Service Alert (USA) of the location of the facilities. 8.3 In addition to any other remedies available in this Agreement or in applicable law, ENCROACHER’s failure to comply with the terms and conditions of this Agreement may, at CITY’s sole discretion consistent with applicable law, result in the revocation of existing permits affected by such noncompliance, the withholding issuance of any new encroachment permits or other designated permits, and/or other enforcement actions by CITY. Any failure by CITY to strictly or timely enforce the terms or conditions of this Agreement or any conditions of any permits issued in connection with this Agreement shall not be deemed a waiver or continuing waiver by CITY of any of its rights or remedies under this Agreement or applicable law. No practice or course of dealings between CITY and ENCROACHER shall be deemed to waive, modify, amend or alter any terms or conditions in this Agreement. SECTION 9 PERFORMANCE BOND 9.1 Prior to the issuance of an encroachment permit and undertaking any of the work, installation, improvements, construction, repair, relocation, or maintenance authorized by permits issued for Facilities under this Agreement, ENCROACHER is required to furnish a bond executed by a corporate surety or financial institution authorized to do business in the State of California in a sum to be set and approved by the CITY as sufficient to guarantee performance of all of ENCROACHER’s obligations under this Agreement. The bond must be conditioned so that ENCROACHER is required to observe all the covenants, terms, and conditions and faithfully perform all of the obligations of this Agreement at any time during or after the term of this Agreement. ENCROACHER may meet the obligations of this subsection with one or more bonds acceptable to CITY on a form approved by the City Attorney. In lieu of providing a performance bond, ENCROACHER may furnish a cash deposit in an amount approved by CITY and on terms and conditions acceptable to the City Attorney. In the event that a bond issued pursuant to this subsection is canceled by the surety, after proper notice and pursuant to the terms of said bond, ENCROACHER is required to, prior to the expiration of said bond, immediately 2018-09-18 Agenda Packet Page 213 -11- notify CITY in writing and procure a replacement bond which complies with the terms of this subsection. 9.2 So long as the cash deposit or bond is in place, it may be utilized by the CITY as provided herein for reimbursement of the CITY by reason of ENCROACHER’s failure to pay the CITY for actual costs and expenses incurred by the CITY under this Agreement. 9.3 In the event ENCROACHER has been declared by the CITY to be in default of a material provision of this Agreement relating to removal and if ENCROACHER fails, within 30 days of mailing of the CITY’s default notice, to perform any of the conditions of this Agreement with respect to removal, or fails to begin to perform any such condition that may take more than thirty (30) days to complete, CITY may thereafter obtain from the cash deposit or bond, after proper claim is made to the surety, an amount sufficient to compensate the CITY for its damages. Upon such withdrawal from the cash deposit or bond, the CITY shall notify ENCROACHER in writing, by First Class Mail, postage prepaid, of the amount withdrawn and the date thereof. 9.4 Thirty (30) days after the CITY’s mailing of notice of the cash deposit or bond forfeiture or withdrawal authorized herein, ENCROACHER is required to deposit such further cash or bond, or other security, as the CITY may require, which is sufficient to meet the requirements of this Agreement. 9.5 The rights reserved to the CITY with respect to any cash deposit or bond are in addition to all other rights of the CITY whether reserved by this Agreement or authorized by law, and no action, proceeding, or exercise of a right with respect to any cash deposit or bond shall constitute an election or waiver of any rights or other remedies the CITY may have. SECTION 10 DAMAGE TO IMPROVEMENTS IN PUBLIC RIGHT-OF-WAY 10.1 ENCROACHER is responsible for any damage to CITY street pavements, existing utilities, curbs, gutters, sidewalks, and all other public or private improvements and facilities due to its construction, operation, installation, maintenance, repair, or removal of its Network Facilities in Public Right-of-Way, or any other actions or omissions of ENCROACHER under this Agreement. ENCROACHER is required to repair, replace, and restore in kind all damaged improvements or facilities at is sole expense by no later than fourteen (14) calendar days (or such longer period of time as permitted by CITY) after causing such damage. In the event that ENCROACHER fails to timely cure any such damage, CITY may, but is not obligated to, repair the damage at ENCROACHER’s sole expense. In such event, ENCROACHER will reimburse CITY for all costs incurred to repair such damage within ten (10) calendar days after ENCROACHER receives the CITY’s demand for payment and ENCROACHER’s failure to do so will be a material breach of this Agreement. 10.2 ENCROACHER is responsible for all premature deterioration of surface and subsurface improvements, such as pavement or concrete over the facility or trench and/or appurtenant areas, or reduction in the life of the Public Right-of-Way as determined by City Engineer, normal wear and tear excepted, which results from ENCROACHER’s acts or omissions under this Agreement. In the event that ENCROACHER cuts, trenches, excavates, or 2018-09-18 Agenda Packet Page 214 -12- otherwise opens any street placed under a street-cut moratorium or similar restriction by CITY, ENCROACHER shall also be responsible for any additional repairs, replacements, repaving, and/or resurfacing for other areas in the Public Rights-of-Way as determined by the City Engineer and in accordance with such moratorium or other restriction. ENCROACHER is required to complete all necessary repairs within thirty (30) days of notification by City Engineer, or such other longer period of time as permitted by the City Engineer. If ENCROACHER fails to make repairs within thirty (30) days of notice, CITY may, but is not obligated to, have repairs made at ENCROACHER’s sole cost and expense. In such event, ENCROACHER will pay for all costs for repairs. If the repairs cannot fully reverse the deterioration or loss of life, the CITY may require ENCROACHER to pay for the damage suffered as a result. SECTION 11 PARTICIPATION WITH UTILITIES 11.1 ENCROACHER agrees to cooperate in the planning, locating, and constructing of its Network Facilities in joint trenches or common duct banks and to participate in cost-sharing for the joint trench and ducts, when two or more service or utility providers are proposing placement of facilities in the same Public Right-of-Way or when an underground project is being planned by CITY. ENCROACHER shall timely comply with all reasonable requests from the City Engineer for cooperation, which may include, without limitation, participation in regular meetings with other service or utility providers and the filing of annual or quarterly capital improvement forecasts. 11.2 The requirements of this section shall not apply when ENCROACHER’s excavation work is due to an emergency or other maintenance or repair event that requires urgent action. SECTION 12 MAPS, RECORDS, AND FIELD LOCATIONS 12.1 ENCROACHER is required to maintain accurate maps and improvement plans of all Network Facilities located within the City of Chula Vista. ENCROACHER is required, upon demand of the City Engineer, to deliver free-of-charge to the office of the Public Works Department and/or Department of Engineering & Capital Projects within thirty (30) days after such demand, such maps and plans as may be required to show in detail the exact location, size, depth, and description of all Network Facilities installed within the Public Right-of-Way. Regardless of receipt of a demand by CITY, if additions/modifications were made to ENCROACHER’s Network Facilities during the prior calendar year, ENCROACHER is required to deliver free-of-charge to the office of the Public Works Department and/or Department of Engineering & Capital Projects, such maps and plans as may be required to show in detail the exact location, size, depth, and description of all Network Facilities installed within the Public Right-of-Way by no later than December 31 of each calendar year. ENCROACHER is required to submit the plan to CITY in digital electronic format as specified by CITY. 12.2 ENCROACHER is required to be a member of USA, the regional notification center for subsurface installations, and is required to field mark, at its sole cost, the locations of its underground Network Facilities upon notification in accordance with the requirements of Section 2018-09-18 Agenda Packet Page 215 -13- 4216 of the State of California Government Code, as it now reads or may herein after be amended. 12.3 ENCROACHER is required to maintain a copy of all maps, books, and records identified in this Agreement within the State of California, and to provide such maps, books, and records for copying and inspection by CITY. ENCROACHER’s facilities will be subject to inspection by the CITY, as the CITY finds appropriate to request in the exercise of its rights under this Agreement and its jurisdiction over ENCROACHER. SECTION 13 HOLD HARMLESS AND INDEMNIFICATION 13.1 ENCROACHER, jointly and severally, for itself, its successors, agents, and ENCROACHER’s employees, agrees to indemnify, defend (with reasonable notice to ENCROACHER and with counsel reasonably acceptable to CITY), and hold harmless CITY, its elected officials, appointed officials, officers, directors, employees, volunteers and agents and any successors to CITY’s interest (each an “Indemnified Party”; collectively, the “Indemnified Parties”) from and against any and all claims, demands, losses, damages, liabilities, fines, penalties, charges, administrative and judicial proceedings and orders, judgments, remedial actions of any kind, and all costs and cleanup actions of any kind, all costs and expenses incurred in connection therewith, including, without limitation, reasonable attorney’s fees and costs of defense (collectively, the “Losses”) arising directly or indirectly out of (i) ENCROACHER’s activities described in this Agreement, (ii) actions or omissions in connection with or related to this Agreement, (iii) ENCROACHER’s actions or omissions in connection with or related to any permit issued pursuant to this Agreement, (iv) the performance, condition, or existence of the Network Facilities described in this Agreement, and/or (v) the installation, construction, operation, maintenance, removal, and/or repair of the Network Facilities or any related improvement or facility thereto. However, ENCROACHER shall not be required to indemnify the Indemnified Parties for Losses arising from the CITY’s sole gross negligence or willful misconduct. CITY shall not be responsible for any damages, losses, or liability of any kind occurring by reason of anything done or omitted to be done by any third party or CITY, except for acts which constitute the CITY’s sole gross negligence or willful misconduct.. 13.2 ENCROACHER, for itself and its successors and assigns, hereby waives all claims and causes of action, whether now existing or hereafter arising, against the Indemnified Parties, and each of them, for damages, physical or otherwise, to any of the facilities covered by this Agreement from any cause whatsoever excluding those arising as a result of the CITY’s sole gross negligence or willful misconduct. Under no circumstances will either party be liable to the other party or otherwise be responsible for any loss of service downtime, lost revenue or profits, third party damages, or punitive, consequential, or special damages under any theory of liability. SECTION 14 INSURANCE 14.1 Types; Amounts. ENCROACHER is required to procure and maintain, and required to require its contractors and subcontractors of every tier to procure and maintain, pursuant to this Agreement, insurance of the types and in the amounts described below (“Required 2018-09-18 Agenda Packet Page 216 -14- Insurance”). If any of the Required Insurance contains a general aggregate limit, such insurance will apply separately to this Agreement or be no less than two times the specified occurrence limit. 14.1.1 General Liability. ENCROACHER and its contractors and subcontractors of every tier are required to procure and maintain occurrence version general liability insurance, or equivalent form, which shall cover liability arising from premises and operations, XCU (explosions, underground, and collapse), independent contractors, products/completed operations, personal injury and advertising injury, and bodily injury, with a combined single limit of not less than $1,000,000 per occurrence for bodily injury, personal injury, and property damage., and $1,000,000 per Products/Completed Operations. 14.1.2 Business Automobile Liability. ENCROACHER and its contractors and subcontractors of every tier are required to procure and maintain business automobile liability insurance, or equivalent form, with a combined single limit of not less than $1,000,000 per occurrence. Such insurance must include coverage for the ownership, operation, maintenance, use, loading, or unloading of any vehicle owned, leased, hired, or borrowed by the insured or for which the insured is responsible. 14.1.3 Workers’ Compensation. ENCROACHER and its contractors and subcontractors of every tier are required to procure and maintain workers’ compensation insurance with limits as required by the Labor Code of the State of California and employers’ liability insurance with limits of not less than $1,000,000 per occurrence, at all times during which insured retains employees. 14.1.4 Professional Liability. For any consultant or other professional who will engineer or design the Public Improvements, liability insurance for errors and omissions with limits not less than $1,000,000 per occurrence, must be procured and maintained for a period of five (5) years following completion of the Public Improvements. Such insurance must be endorsed to include contractual liability. 14.1.5 Pollution Liability. ENCROACHER and its contractors and subcontractors of every tier are required to procure and maintain Contractors Pollution Liability Insurance appropriate to cover such activities in an amount not less than $1,000,000 Combined Single Limit per occurrence/aggregate for bodily injury, property damage and remediation. 14.2 Deductibles. Any deductibles or self-insured retentions must be declared to and approved by CITY. At the option of CITY, either: (a) the insurer will reduce or eliminate such deductibles or self-insured retentions as respects City, its elected officials, officers, employees, agents, and volunteers; or (b) ENCROACHER and its contractors are required to provide a 2018-09-18 Agenda Packet Page 217 -15- financial guarantee satisfactory to City guaranteeing payment of losses and related investigation costs, claims, and administrative and defense expenses. 14.3 Additional Insured; Separation of Insureds. The Required Insurance, except for Professional Liability and Worker’s Compensation, must name CITY, its elected and appointed officials, officers, employees, agents, and volunteers as additional insureds with respect to work performed by or on behalf of ENCROACHER or its contractors, including materials, parts, or equipment furnished in connection therewith. The Required Insurance must contain standard separation of insureds provisions, and must contain no special limitations on the scope of its protection to CITY, its elected officials, officers, employees, agents, and volunteers. 14.4 Primary Insurance; Waiver of Subrogation. The Required Insurance is primary with respect to any insurance or self-insurance programs covering CITY, its elected officials, officers, employees, agents, and volunteers. All policies for the Required Insurance must provide that the insurance company waives all right of recovery by way of subrogation against CITY in connection with any damage or harm covered by such policy. 14.5 Certificates; Verification. ENCROACHER and its contractors are required to furnish CITY with original certificates of insurance and endorsements effecting coverage for the Required Insurance. The certificates and endorsements for each insurance policy are required to be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates and endorsements must be received and approved by CITY before work pursuant to this Agreement can begin. CITY reserves the right to require complete, certified copies of all required insurance policies, at any time. 14.6 Term; Cancellation Notice. ENCROACHER is required to maintain the Required Insurance for the term of this Agreement and replace any certificate, policy, or endorsement which will expire prior to that date. ENCROACHER is required to ensure any contractors who perform work for ENCROACHER in the Public Rights-of-Way also maintain the Required Insurance. ENCROACHER is required to provide City thirty (30) days prior written notice of the suspension, expiration, cancellation or reduction below the minimums set forth in this Section 14 for all applicable policies. 14.7 Insurer Rating. Unless approved in writing by CITY, all Required Insurance must be placed with insurers licensed to do business in the State of California and with a current A.M. Best rating of at least A-:VIII. SECTION 15 ASSIGNMENT 15.1 ENCROACHER may not assign, sublet, or transfer any interest in this Agreement , or the performance of any ENCROACHER’s obligations hereunder, without the prior written consent of CITY, which shall not be unreasonably withheld, and any attempt by ENCROACHER to so assign this Agreement or any rights, duties or obligations arising hereunder shall be void and of no effect. The transfer of the rights and obligations of ENCROACHER to a parent, successor, or subsidiary of ENCROACHER shall not be deemed an assignment for the purposes of this section, but ENCROACHER is required to immediately notify CITY of any transfer of 2018-09-18 Agenda Packet Page 218 -16- rights and obligations of ENCROACHER to a parent, successor, or subsidiary of ENCROACHER. For the purposes of this section, the leasing or granting in the ordinary course of business of indefeasible rights of use or similar rights in dark fiber, fiber optic capacity, conduit, and other network elements shall not require the express consent of the CITY, so long as ENCROACHER remains solely responsible for locating, placing, installing, maintaining, relocating, and removing the Network Facilities. SECTION 16 TERM AND TERMINATION 16.1 This Agreement will terminate ten (10) years from the Effective Date unless the parties agree to extend the Agreement in a writing executed by the parties prior to said termination date, except that this Agreement may be terminated sooner under the following circumstances and consistent with applicable law. a. This Agreement may be terminated by CITY upon at least thirty (30) days written notice to ENCROACHER if CITY reasonably determines that the provisions herein interfere with the use or disposal of said Public Right-of- Way or any part thereof by CITY. Where only a portion of ENCROACHER’s Network Facilities interferes with the use or disposal of said Public Right-of-Way, CITY may allow ENCROACHER to relocate the said portion in accordance with this Agreement. b. This Agreement may be terminated by CITY for failure, neglect, or refusal by ENCROACHER to fully and promptly comply with any and all of the conditions of this Agreement, or for nonuse in accordance with this Agreement, upon thirty (30) days written notice, unless ENCROACHER confirms with thirty (30) days of receipt of the notice that the cited condition has ceased, been corrected or, subject to CITY’s agreement, is diligently being pursued by ENCROACHER, which agreement shall not be unreasonably withheld. c. The Agreement may be terminated if CITY determines in good faith and after conducting reasonable efforts that any material term hereof is unenforceable. d. This Agreement shall be terminated if ENCROACHER’s Certificate of Public Convenience and Necessity terminates, is revoked, or is abandoned, or if ENCROACHER fails to maintain its status as a CLC. 16.2 Upon termination of the Agreement, and upon written request by CITY, ENCROACHER, at its own cost and expense, agrees to remove, or at CITY’s discretion, abandon in place its Network Facilities from the Public Right-of-Way and restore the Public Right-of-Way as set forth in the Removal and Relocation provisions of this Agreement. Should ENCROACHER in such event fail, neglect, or refuse to make such removals or restoration with one hundred eight (180) days of CITY’s written request, at the sole option of CITY, such removal and restoration may be performed by CITY at the expense of ENCROACHER, which 2018-09-18 Agenda Packet Page 219 -17- expense includes administrative and legal costs. ENCROACHER agrees to pay CITY for such costs by no later than ten (10) days after CITY tenders a demand. If City allows ENCROACHER to abandon its Network Facilities in place, title to those Network Facilities will pass to CITY and ENCROACHER must, upon demand, promptly execute and deliver to CITY all documentation (in a form approved by the City Attorney) necessary to effectuate such transfer of ownership of the Network Facilities. SECTION 17 NOTICES 17.1 All notices given or which may be given pursuant to this Agreement must be in writing and transmitted by United States mail or by private delivery systems if followed by United States mail or by private delivery systems as follows: To CITY at: City of Chula Vista Attn: City Engineer 276 Fourth Avenue Chula Vista, CA 91911 To ENCROACHER at: ______________________ ______________________ ______________________ SECTION 18 MISCELLANEOUS 18.1 In the event that ENCROACHER fails to timely perform, remedy, or cure any obligation in this Agreement, or fails to satisfy any condition in this Agreement, the CITY may, but is not obligated to, perform, remedy, or cure any obligation in this Agreement, or satisfy any condition in this Agreement, at ENCROACHER’s sole cost and expense. In such event, ENCROACHER will reimburse CITY for all costs incurred within ten (10) calendar days after ENCROACHER receives the CITY’s demand for payment. ENCROACHER’s failure to timely make such payment will constitute a material breach of this Agreement, and, any sums that remain unpaid after the 10th calendar day shall bear interest at 10% per annum or the highest rate permissible under applicable laws. 18.2 This Agreement contains the entire understanding between the parties with respect to the subject matter herein. There are no representations, agreements, or understandings (whether oral or written) between or among the parties relating to the subject matter of this Agreement 2018-09-18 Agenda Packet Page 220 -18- which are not fully expressed herein. This Agreement may be not amended except pursuant to a written instruction signed by all parties. 18.3 The failure of either party hereto to enforce any of the provisions of this Agreement, or the waiver thereof in any instance shall not be construed as a general waiver or relinquishment on its part of any such provision, but the same shall nevertheless be and remain in full force and effect. 18.4 If any term, provision, or portion of any term or provision of the Agreement is declared invalid or unenforceable by any court of lawful jurisdiction, then the remaining terms and provisions or portions of terms or provisions will not be affected thereby and will remain in full force and effect. 18.5 This Agreement may be executed in one or more counterparts, all of which taken together shall constitute one and the same instrument. 2018-09-18 Agenda Packet Page 221 -19- IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate. CITY ENCROACHER A California municipal corporation APPROVED: By: APPROVED AS TO FORM: Glen R. Googins City Attorney EXHIBITS A – Network Facilities B – Facilities Locations ______________________________________ Gary Halbert City Manager Name: Title: Date: 2018-09-18 Agenda Packet Page 222 Development Services Counter: Intake, Routing & Permit Issuance 183.03$ 1.75 320.30$ Land Development: Permit Review 176.27$ 2.00 352.54$ Traffic Engineering: Permit Review 151.20$ 7.00 1,058.40$ Construction Inspection: Field Inspection 136.76$ 10.00 1,367.60$ Total Estimated Cost of Service 20.75 3,098.84$ Proposed Initial Deposit 3,000.00$ Cost of Service Analysis Network Facility Encroachment Permit FB Hourly Rate Hours Total Cost of ServiceStaff: Activity 2018-09-18 Agenda Packet Page 223 MASTER FEE SCHEDULE FEE BULLETIN Chapter 11 – Engineering Fees 11-200 Plan Review & Permit Fees City of Chula Vista Development Services 276 Fourth Avenue, Chula Vista, CA 91910 July September 20178 City of Chula Vista www.chulavistaca.gov 619.691.5021 APPEALS Filing fee (Appellant) ....................................... $250 Processing fee (Applicant) .......... Full cost recovery Initial deposit ............................................... $5,000 DEFERRALS/WAIVERS 1. Deferral of Public Improvements Appeal filing fee .............................................. $250 2. Deferral of Underground Utilities Deferral processing fee ............... Full cost recovery 3. Public Improvements Waiver Waiver processing fee ..................................... $835 Waiver appeal filing fee .................................. $250 REIMBURSEMENT DISTRICTS 1. Reimbursement District Formation Includes staff costs associated with preparation of the estimated costs of the facilities, determination of the benefited area, estimate of the proper assessment and actual costs of all notices published or mailed pursuant to Chapter 15.50 of the Chula Vista Municipal Code. District formation ........................ Full cost recovery COMMUNITY FACILITIES DISTRICTS 1. Community Facilities District (CFD) Formation Includes staff costs associated with the preparation of formation documents. Also includes cost of consultants hired by the City including the district financing team and administrator. All fees/staff time reimbursements made to the City per this section are eligible for reimbursement from bond proceeds or first annual levy. District formation ........................ Full cost recovery Origination charge ................ 1% of bond proceeds 2. CFD Administration Prepayment processing fee Per parcel ........................................................ $500 CFD Direct Payment Processing Fee charged to property owners delinquent in payment of property taxes, requesting payment of special taxes directly to City. Fees are for parcels with delinquent special taxes and/or assessments in one or two districts. Additional fee of $50 per district will be charged. DELINQUENCY AMOUNT PROCESSING FEE $0 - $5,000 $150 $5,001 - $10,000 $250 $10,001 - $50,000 $500 $50,001 - $100,000 $1,000 $100,001 - $200,000 $2,000 $200,001 and up $3,000 PLAN REVIEW 1. Adjustment Plat Examination Fee Property line adjustment plat ...................... $3,045 Consolidation plat, 2 or more parcels .......... $3,045 Both the property line adjustment plat and consolidation plat fees include a certificate of compliance, if needed, at no additional cost. 2. Certificate of Compliance Filing fee .......................................................... $225 3. Tentative (Preliminary) Parcel Map Map review ................................. Full cost recovery Initial deposit ............................................... $5,000 Tentative map waiver ..................................... $220 4. Final Parcel Map 2018-09-18 Agenda Packet Page 224 July September 20187 MASTER FEE SCHEDULE FEE BULLETIN 11-200 Page 2 of 3 City of Chula Vista www.chulavistaca.gov 619.691.5021 Map review ................................. Full cost recovery Initial deposit ............................................... $2,500 5. Final Subdivision Map Map review ................................. Full cost recovery Initial deposit, minor (≤ 50 lots) ................... $7,500 Initial deposit, major (> 50 lots) ................. $15,000 Final Map recordation fee .................... Actual cost Map review full cost recovery deposit does not include checking of any required improvement plans or inspection of improvements. 6. Improvement Plans - Improvement Valuation > $10,0001 Administration & plan review ..... Full cost recovery Construction inspection .............. Full cost recovery Initial deposit ...............Varies, see schedule below IMPROVEMENT VALUATION PLAN REVIEW CONSTRUCTION INSPECTION $10,001 - $100,000 $4,500 $4,000 $100,001 - $500,000 $15,000 $15,000 > $500,000 $20,000 $20,000 7. Landscape & Irrigation Plans (Standalone, per CVMC § 20.12.030(A)) Minor............................................................... $330 Major ............................................................ $2,035 PERMITS 1. Construction Permits Improvement Valuation ≤ $10,000 Administration & plan review ......................... $290 Construction inspection .................................. $680 Additional traffic control fees shall be collected for flat fee construction permits as appropriate. Improvement Valuation > $10,000 Administration & plan review ..... Full cost recovery Construction inspection .............. Full cost recovery 1 For improvement plans with estimated improvement value less than or equal to $10,000 see ‘Construction Permits’. Initial deposit ................. See Improvement Plans – Improvement Valuation > $10,000 above 2. Grading Permits Administration & Plan review ..... Full cost recovery Construction inspection .............. Full cost recovery Initial deposit ............... Varies, see schedule below ESTIMATED CUBIC YARDS (CY) PLAN REVIEW CONSTRUCTION INSPECTION ≤ 1,000 CY $6,000 $3,000 1,001 – 10,000 CY $12,000 $6,000 10,001 – 100,000 CY $15,000 $15,000 > 100,000 CY $20,000 $20,000 3. Driveway Variance, Excessive Width Filing fee .......................................................... $545 Appeal filing fee .............................................. $250 4. Encroachment Permit Per Chula Vista Municipal Code § 12.28.050 Plan review & inspection ............................. $1,175 5. Temporary Encroachment for storage of building materials in City right-of-way (e.g. roll-off dumpsters) Nonrefundable application fee ......................... $75 If materials are placed in the street by applicant prior to issuance of a temporary encroachment permit, the application fee shall be doubled. 6. Network Facility Encroachment Permit Plan review & inspection ............ Full cost recovery Initial deposit ............................................... $3,000 6.7. Wireless Telecommunications Facilities in the Public Right -of -Way Plan review & inspection ............ Full cost recovery Initial deposit ............................................... $1,500 2018-09-18 Agenda Packet Page 225 July September 20187 MASTER FEE SCHEDULE FEE BULLETIN 11-200 Page 3 of 3 City of Chula Vista www.chulavistaca.gov 619.691.5021 7.8. Utility Permits Utility Permit fee is calculated based upon the cost of replacement of the surface improvements (including the top three (3) feet of any trench or any other excavation) within the City right-of-way. Additional traffic control fees shall be collected for flat fee utility permits, as appropriate. Cost < $10,000 ................................................ $590 Cost of $10,000 or greater .......... Full cost recovery Initial deposit ............................................... $3,000 Utility permit written agreement exception If cost < $10,000 and meets the following requirements, the City may provide for utility permit processing fee, if any, in a separate written agreement between the City and the permittee. ▪ Includes less than 150 feet of excavation ▪ Less than 7 days in duration ▪ Does not require trench shoring ▪ Is not constructed on a road wider than two lanes ▪ Not near a signalized intersection 8.9. Construction Security Deposit Bookkeeping Fee Security bookkeeping fee .... 1% of security amount Security bookkeeping fee shall be deducted from each bond, prior to release to depositor. 9.10. Penalty Fees2 Work performed without a construction permit....................................... 100% of permit fee 2 Penalty fees are in addition to standard permit fees. FULL COST RECOVERY For all full cost recovery fee items, an initial deposit shall be collected to cover the City’s full cost, including overhead, incurred in conjunction with review and processing as requested by applicant. Additional funds may be collected, as required, to cover City costs. Should the application be withdrawn at any time, the deposit shall be adjusted to cover the City’s actual costs, including overhead, up to that time. Any funds remaining on deposit at the time of the completion or withdrawal of the application shall be returned to the depositor, after accounting for expenses incurred to date. See Master Fee Schedule Fee Bulletins 1-100 and 1-200 for additional discussion of full cost recovery and current hourly rates. 2018-09-18 Agenda Packet Page 226 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FORM OF A MASTER ENCROACHMENT AGREEMENT FOR THE INSTALLATION OF NETWORK FACILITIES WITHIN THE PUBLIC RIGHT- OF-WAY WHEREAS,City owns, operates, and maintains the Public Right-of-Way within the City; and WHEREAS, various communications service providers desire to construct network facilities with the Public Right-of-Way within the City to provide communications services; and WHEREAS, City wishes to adopt a process and template agreement that will ensure that the City operates fairly and consistently with the various communications service providers; and WHEREAS, pursuant to Cal. Const., art. XI, § 7, City has the authority to make and enforce all local, police, sanitary, and other ordinances and regulations not in conflict with general laws within its jurisdictional limits, including without limitation the authority to regulate the terms and conditions for the use of Public Right-of-Way for the construction, installation, and maintenance of communications network facilities; and WHEREAS, under the agreement, encroachers are required to construct, operate, repair, and maintain their network facilities in a manner that does not endanger any persons or cause any damage to property; and WHEREAS, when removal or relocation is required under the Agreement, encroachers must, after the removal or relocation of the network facilities, at the encroacher’s sole cost, repair and return the Public Right-of-Way in which the network facilities were located to a safe and satisfactory condition equal to or better than the condition of the Public Right-of-Way prior to the start of such removal or relocation work, as determined by the City Engineer, in accordance with the construction-related conditions and specifications as established by City consistent with applicable law. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it approves the form and material terms of the Master Encroachment Agreement for the Installation of Network Facilities Within the Public Right-of-Way attached hereto as Attachment 1; and BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it authorizes the City Attorney to make such modifications to each Master Encroachment Agreement as necessary or appropriate for legal compliance or risk mitigation; and 2018-09-18 Agenda Packet Page 227 BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it authorizes the City Manager, or designee, to execute each Master Encroachment Agreement on behalf of the City of Chula Vista on a form prescribed or approved by the City Attorney. Presented by Approved as to form by William S. Valle Glen R. Googins Director of Engineering & Capital Projects City Attorney 2018-09-18 Agenda Packet Page 228 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHAPTER 11 (ENGINEERING FEES) OF THE CITY’S MASTER FEE SCHEDULE TO ESTABLISH NETWORK FACILITY ENCROACHMENT PERMIT FEES WHEREAS, the City Council wishes to establish permit fees for the issuance and inspection of Network Facility Encroachment Permits; and WHEREAS, an analysis of the staff effort and the current fully burdened hourly rates for impacted staff associated with issuing and inspecting Network Facility Encroachment Permits has been conducted to determine the cost of service associated with providing these permitting services; and WHEREAS, in order to achieve full and equitable cost recovery for Network Facility Encroachment Permits, the City Council wishes to amend Chapter 11 (Engineering Fees) of the City’s Master Fee Schedule, as set forth in Exhibit 1, attached hereto and incorporated herein by reference as if set forth in full; and WHEREAS, the proposed fees do not exceed the estimated reasonable cost of providing the associated services; and WHEREAS, Article XIII C of the California Constitution requires a vote of the electorate to increase any levy, charge, or exaction imposed by a local government, unless specifically exempted; and WHEREAS, the proposed fees are exempt from the vote requirement per Sections 1(e)(2) and 1(e)(3); and WHEREAS, the proposed amendments to the Master Fee Schedule Chapter 11 shall become effective upon adoption of this Resolution by the City Council. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it does hereby amend Chapter 11 (Engineering Fees) of the City’s Master Fee Schedule to establish Network Facility Encroachment Permit fees as set forth in Exhibit 1 to this Resolution. Presented by Approved as to form by William S. Valle Glen R. Googins Director of Engineering & Capital Projects City Attorney 2018-09-18 Agenda Packet Page 229 P a g e | 1 September 18, 2018 File ID: 18-0344 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING THE SUMMARY VACATION OF AN IRREVOCABLE OFFER OF DEDICATION OF LOT “6” FOR PUBLIC PARK PURPOSES AND OF LOT “7” FOR SCHOOL PURPOSES PER FINAL MAP NO. 16112, CHULA VISTA TRACT NO. 12-05, OTAY RANCH VILLAGE 2 SOUTH RECOMMENDED ACTION Council adopt the resolution. SUMMARY The developer of Otay Ranch Village 2 (Baldwin & Sons) is obligated to dedicate a total of 5.1 acres of parkland for the P-5 park site, Lot “6”. The current dedicated total is 4.9 acres. To rectify this discrepancy, a lot line adjustment is being processed. This action will vacate the existing Irrevocable Offer of Dedication (IOD) for P-5, Lot “6” recorded with Final Map 16112 on June 22, 2016 and rededicate with the correct park land acreage. Additionally, this action will vacate the IOD on the school site S-2, Lot “7” recorded with the Final Map 16112 on June 22, 2016. In accordance with Section 7050 of the California Government Code and Chapter 4, Section 8335 of the California Streets and Highways Code, this type of vacation may be performed summarily through adoption of a resolution. A new IOD will be offered and accepted for the P-5 park site, Lot “6”, per separate instrument. A new IOD is not required for the school site. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the Project was adequately covered in previously certified Final Second Tier Environmental Impact Report, EIR 02-02 and Final Supplemental Environmental Impact Report, SEIR 12-01 for the Otay Ranch Village Two Sectional Planning Area (SPA) Plan. Thus, no further environmental review or documentation is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable DISCUSSION Otay Ranch is a master planned community within the City that consists of various “Villages”. A portion of Otay Ranch, Village 2 (“Village 2”) will consist of a mixture of residential, retail, industrial, employment, civic, and cultural uses. Per the California Government Code §§66477, et seq. (the “Quimby Act”) and the Otay Ranch Development Plan (GDP) parks and open space policies require that Village 2 provide three (3) 2018-09-18 Agenda Packet Page 230 P a g e | 2 acres of neighborhood and community parks per 1,000 residents. The parkland obligation for the P-5 site is 5.1 acres. The existing size of the P-5 park site is 4.9 acres and the newly configured lot will be 5.1 acres with the approval of a Lot Line Adjustment (LLA) between the P-5 and S-2 sites (Attachment 2). As part of the requirements made by the City to vacate the IOD, the Developer must process a LLA and provide a new IOD that will reflect the correct acreage of the park site (Attachment 3). After the recordation of the Council Resolution that will abandon any City interest in Lot “6” (the P-5 Park Site), the City Clerk will acknowledge, and record the new IOD for the park. An IOD for the S-2 school site Lot “7” was approved and accepted with Final Map No. 16112. The City does not accept IODs for school sites, and thus the existing IOD will be vacated with the proposed action. A new IOD will not be created for the school site. With today’s action, the City will abandon the IODs recorded with the Final Map No. 16112 on June 22, 2016 in accordance with Section 7050 of the California Government Code and Chapter 4, Section 8335 of the California Streets and Highways Code, this type of vacation may be performed summarily through adoption of a resolution of vacation by the City Council and recordation of a certified copy of the resolution attested to by the City Clerk. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The proposed action addresses the Operational Excellence goal as it clarifies the responsibility of the Developer for the construction of parks that will serve the community. CURRENT-YEAR FISCAL IMPACT All costs associated with processing the summary vacation is borne by the developer, resulting in no net fiscal impact to the General Fund or the Development Services Fund. ONGOING FISCAL IMPACT There is no ongoing fiscal impact associated with the abandonment of the IODs. ATTACHMENTS Attachment 1: Vicinity Map Attachment 2:Proposed Lot Line Adjustment Attachment 3: New IOD for Park Lot Staff Contact: Jonathan Hardin, Assistant Engineer 2018-09-18 Agenda Packet Page 231 2018-09-18 Agenda Packet Page 232 2018-09-18 Agenda Packet Page 233 2018-09-18 Agenda Packet Page 234 2018-09-18 Agenda Packet Page 235 2018-09-18 Agenda Packet Page 236 2018-09-18 Agenda Packet Page 237 2018-09-18 Agenda Packet Page 238 2018-09-18 Agenda Packet Page 239 2018-09-18 Agenda Packet Page 240 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ORDERING THE SUMMARY VACATION OF AN IRREVOCABLE OFFER OF DEDICATION OF LOT “6” FOR PUBLIC PARK PURPOSES AND OF LOT “7” FOR SCHOOL PURPOSES PER FINAL MAP NO. 16112, CHULA VISTA TRACT NO. 12-05, OTAY RANCH VILLAGE 2 SOUTH WHEREAS, pursuant to the Otay Ranch General Development Plan, the Otay Ranch Village 2 Developer has an obligation to dedicate 5.1 acres of parkland for P-5, Lot “6”; and, WHEREAS, an Irrevocable Offer of Dedication in Fee Interest of Lot “6” was acknowledged by the City of Chula Vista for Public Park Purposes as shown on Final Map No. 16112, filed in the Office of the County Recorder of San Diego County on June 22, 2016; and WHEREAS, currently the dedicated total parkland for P-5, Lot “6” is 4.9 acres; and WHEREAS, a summary vacation of the Irrevocable Offer of Dedication in Fee Interest for the 4.9 acres Lot “6” of Final Map No. 16112 and a subsequent Irrevocable Offer of Dedication for a newly reconfigured lot of 5.1 acres will rectify the difference of under dedicated parklands; and WHEREAS, an Irrevocable Offer of Dedication in Fee Interest of Lot “7” was acknowledged by the City of Chula Vista for School Purposes as shown on Final Map No. 16112, filed in the Office of the County Recorder of San Diego County on June 22, 2016; and WHEREAS, in accordance with Section 7050 of the California Government Code and Chapter 4, Section 8335 of the California Streets and Highways Code, the above identified Irrevocable Offer(s) of Dedication in Fee Interest may be terminated and the right to accept such offers abandoned through adoption of a resolution ordering said summary vacation; and WHEREAS, staff recommends that the above identified Irrevocable Offer(s) of Dedication in Fee Interest for Lot “6” as shown on Final Map No. 16112 and Lot “7” as shown on Final Map No. 16112, be terminated and the right to accept such offers abandoned through adoption of this resolution ordering summary vacations therefor; and WHEREAS, from and after the date this resolution is recorded, the above identified Irrevocable Offer(s) of Dedication in Fee Interest will no longer constitute offers of dedication for the stated purposes; and WHEREAS, a new Irrevocable Offer of Dedication in Fee Interest for 5.1 acres for Public Park and Other Public Purposes will be offered by the Developer and accepted by the City per separate instrument; and 2018-09-18 Agenda Packet Page 241 WHEREAS, the City does not accept IODs for school sites, and thus a new Irrevocable Offer of Dedication will not be created for the school site. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby orders the summary vacation of the Irrevocable Offer of Dedication of Lot “6” for public park purposes, according to map thereof No. 16112, which is incorporated herein by reference as if set forth in full. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista hereby orders the summary vacation of the Irrevocable Offer of Dedication of Lot “7” for school purposes, according to map thereof No. 16112, which is incorporated herein by reference as if set forth in full. BE IT FURTHER RESOLVED that the City Clerk is hereby directed to record this resolution of vacation in the office of the San Diego County Recorder. Presented by:Approved as to form by: Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney 2018-09-18 Agenda Packet Page 242 P a g e | 1 September 18, 2018 File ID: 18-0397 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING COMPETITIVE BIDDING, APPROVING A SOLE-SOURCE PURCHASE AGREEMENT FOR TWO (2) PIERCE ARROW XT TRIPLE COMBINATION PUMPER/FIRE ENGINES BETWEEN THE CITY AND SOUTH COAST FIRE EQUIPMENT, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE SAME RECOMMENDED ACTION Council adopt the resolution. SUMMARY The Chula Vista Fire Department delivers fire, rescue and emergency medical services to Chula Vista residents, visitors, and employees every day. Emergency response services are provided with several different types of fire apparatus, including triple combination pumper/fire engines, aerial ladder trucks, an urban search and rescue (Heavy Rescue) unit, a type III brush engine and battalion chief vehicles. The Fire Department needs to replace several fire engines due to excessive years of service, escalating maintenance costs and safety issues. With the adoption of the Measure P Tax Initiative, the City of Chula Vista is able to begin execution of a 10-year Measure P Fire Vehicles and Equipment Fiscal Purchase Plan. The Fire Department is requesting authorization to enter into a sole source purchase agreement with South Coast Fire Equipment, Inc. for two (2) Pierce Arrow XT Triple Combination Pumpers. These new fire engines will replace existing engines that are beyond their frontline service life and need to be transitioned to reserve status, pursuant to the Fire Apparatus and Fire Staff Vehicle Replacement Plan collaboratively created by the Fire Department and Public Works Department. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the proposed activity for compliance with the California Environmental Quality Act [CEQA] and has determined that the activity is not a “Project” as defined under Section 15378(b)(2) of the State CEQA Guidelines because it involves only the authorization to purchase a vehicle which is an on-going administrative and maintenance activity; therefore, pursuant to Section 15060[c][3] of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not Applicable 2018-09-18 Agenda Packet Page 243 P a g e | 2 DISCUSSION The Fire Department responds to Fire, Rescue and Emergency Medical incidents both within the City and surrounding cities. In addition, the Fire Department provides mutual aid assistance throughout the State of California on a reimbursable basis. These emergency services are provided with the following frontline fire apparatus: eight (8) pumper/engines, two (2) aerial ladder trucks, one (1) heavy rescue (urban search and rescue) unit, one (1) brush engine and two (2) battalion chief vehicles. The reserve fire apparatus currently consists of the following: five (5) reserve pumper/engines, one (1) reserve aerial ladder truck and two (2) reserve battalion chief vehicles. As a result of several factors, including decreased vehicle replacement funding, excessive years of service, escalating maintenance costs, increased downtime of frontline apparatus, decreased fleet depth, and decreased reliability and safety issues, the Fire Department is in need of several new fire apparatus. The Fire Department and Public Works Department are challenged on a daily basis with maintaining an adequate fire apparatus fleet (frontline and reserve) due to the above factors. National Fire Protection Association (NFPA) Standard 1901 on Automotive Fire Apparatus and other National Fleet Maintenance Organizations recommend large vehicle replacements based on several criteria, including years of service, mileage, maintenance costs, functional obsolescence and inability to obtain repair parts, as well as technology and safety improvements. After extensive research of national industry standard recommendations and standards adopted by other Fire Departments, the Fire Department recommends that fire apparatus be replaced based on 10 to 12 years of frontline service, plus 5 years of reserve service, for a total service life of 17 years. The two (2) frontline pumper/fire engines that will be replaced and transitioned to the reserve fleet currently have 13 years of service. The one (1) reserve engine that will subsequently be surveyed out of the Fire Department’s fleet currently has 19 years of total service. The purchase of these two (2) new fire apparatus will significantly improve the overall quality, reliability, cost effectiveness, fleet depth and safety of the City’s fire apparatus fleet to help maintain a proper level of fire, rescue and emergency medical service to Chula Vista, as well as the region and state. This purchase is a sole source purchase through South Coast Fire Equipment, pursuant to Chula Vista Municipal Code sections 2.56.070 (B)(3) and (4): the City’s interests are materially better served by applying a purchasing procedure other than competitive bidding, which is approved by the Purchasing Agent, and South Coast Fire Equipment provides unique performance capabilities and compatibility requirements. Specifically, the Fire Department uses South Coast Fire Equipment to purchase frontline operational emergency response vehicles for several critical reasons: 1. Equipment Standardization: Providing the same type of emergency response apparatus is critical in order to provide a standard, compatible approach to training all personnel. This ensures that our personnel can operate fire apparatus at a competent level while under duress of emergency response. 2. Safety: Fire personnel are consistently moved from one fire station to another. Maintaining a fleet of fire apparatus that operate consistently throughout our fleet ensures driver/operators and firefighters can operate and locate equipment in an efficient and timely manner while working in emergency situations. 3. Operational Efficiency and interoperability: The City and neighboring fire agencies respond to emergencies together on a daily basis. 2018-09-18 Agenda Packet Page 244 P a g e | 3 DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware and has not been informed by any City of Chula Vista City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. This resolution meets the goals of Operational Excellence and Healthy Community. Updating our current fleet of fire apparatus will allow the Fire Department to provide improved service with greater reliability and efficiency. The new pumper/engines will aid with response times; improve firefighter safety, and increase overall operational and fiscal efficiency. CURRENT-YEAR FISCAL IMPACT The total cost to purchase the two (2) fire pumper/engines is $1,441,571.83. The Fire Department and Public Works Department, with approval from the Finance Department is recommending that these purchases be made with pre-identified Measure P FIRE VEHICLE funding from fiscal 18/19. The projected build time and subsequent delivery of the two (2) Pierce apparatus is approximately 10 to 12 months from PO issuance. The associated equipment and outfitting expenses for the two (2) Pierce Arrow XT Triple Combination Pumpers will occur in fiscal 19/20 via pre-identified Measure P funds in alignment with the 10-year Measure P Fire Vehicles and Equipment Fiscal Purchase Plan. Due to the fluctuating delivery of the triple combination pumper from Pierce Manufacturing, staff is not requesting the equipment and outfitting funds at this time. Staff will return to Council based on updated delivery estimates from Pierce Manufacturing and request this funding in the appropriate fiscal year. ONGOING FISCAL IMPACT The ongoing fiscal impact associated with this purchase will include annual fleet maintenance, tools, and equipment replacement. This purchase is for replacement apparatus and ongoing costs are included in the City’s operational budget. ATTACHMENTS Pierce Arrow XT Triple Combination Pumper Quotes (100% pre-pay) Staff Contact: Harry Muns, Chris Manroe, Steve Knapp, David Bilby 2018-09-18 Agenda Packet Page 245 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING COMPETITIVE BIDDING, APPROVING A SOLE-SOURCE PURCHASE AGREEMENT FOR TWO (2) PIERCE ARROW XT TRIPLE COMBINATION PUMPER/FIRE ENGINES BETWEEN THE CITY AND SOUTH COAST FIRE EQUIPMENT, AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE SAME WHEREAS, the Fire Department delivers Fire and Emergency Medical Services to residents, visitors, and employees every day with several different types of fire apparatus, including triple combination pumper/fire engines, an urban search and rescue (Heavy Rescue) unit, and a type III brush engine; and WHEREAS, the Fire Department is requesting approval to enter into a sole-source purchase agreement with South Coast Fire Equipment, Inc. to purchase two (2) Pierce Arrow XT Triple Combination Pumper/Fire Engines; and WHEREAS, pursuant to industry and Department standards on replacement of large fire apparatus, the two new Pumper/Fire Engines which will replace two (2) existing front-line Pumpers, which will be placed into reserve status; and WHEREAS,the Fire Department has demonstrated that waiving competitive bidding in this purchase materially better serves the City’s best interest by using a purchasing process that has been approved by the Purchasing Agent, pursuant to Chula Vista Municipal Code section 2.56.070 (B) (3); and WHEREAS, the Fire Department has demonstrated that South Coast Fire Equipment is a sole source, pursuant to Chula Vista Municipal Code section 2.56.070 (B)(4), because it provides a unique performance capability with its products and service and meets the Department’s compatibility requirements, in furtherance of equipment standardization, safety for Fire personnel, and operational efficiency and interoperability; and WHEREAS, the total cost to purchase the two (2) Triple Combination Pumper/Fire Engines is $1,441,571.83, which will be paid with funds already included in the FY2018-2019 Measure P Expenditure Plan; and WHEREAS, during the apparatus build process, if specific changes should become necessary, the Fire Department asks the City Council to authorize the Fire Chief or his designee to make such changes, as long as the total price does not increase by more than four percent (4%) above the total quoted price by Pierce Manufacturing. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it waives competitive bidding. 2018-09-18 Agenda Packet Page 246 BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it approves a sole-source purchase agreement for two (2) Pierce Arrow XT Triple Combination Pumper/Fire Engines between the City and South Coast Fire Equipment, in the form presented, with such minor modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and authorizes and directs the City Manager to execute the same, and if changes become necessary in the apparatus build process, authorizes the Fire Chief or his designee to make such changes up to a four percent (4%) increase in the total quoted price by Pierce Manufacturing. Presented by Approved as to form by Jim Geering Glen R. Googins Fire Chief City Attorney 2018-09-18 Agenda Packet Page 247 Extension Two (2 ) 1,368,790.00$ 100% Prepayment Discount (47,002.00)$ APPARATUS COST 1,321,788.00$ Sales Tax @ 8.750%115,656.46$ Performance Bond 4,106.37$ California Tire Fee 21.00$ 1,441,571.83$ Less 100% pre-payment at Contract Signing 1,441,571.83$ BALANCE DUE AT DELIVERY $0.00 money down and no payments for one (1) year if desired. Discount for the 100% pre-payment option includes discounts for the chassis, interest, aerial (if applicable), and flooring charges. Any item added after this option is elected will come at additional cost and will be added to the final invoice. 100% PRE-PAYMENT DISCOUNT SHOWN ABOVE IS AVAILABLE IN TWO WAYS: a) b) * * If your department makes a 100% cash pre-payment at contract signing. If your department signs up for a lease-purchase with Oshkosh Capital. This would require no 10.50$ TOTAL PREPAY PURCHASE PRICE 720,785.92$ $0.00 720,785.92$ 57,828.23$ 2,053.19$ If a 100% pre-payment were made at contract signing, the following discount would be applied to the final invoice: Each Pierce Arrow XT Triple Combination Pumper as per enclosed proposal for delivery sum of 684,395.00$ CITY OF CHULA VISTA FIRE DEPARTMENT 100% Pre-Payment Option August 3, 2018 (23,501.00)$ 660,894.00$ 2018-09-18 Agenda Packet Page 248 Extension Two (2 ) 1,368,790.00$ Sales Tax @ 8.750%119,769.12$ Performance Bond 4,106.37$ California Tire Fee 21.00$ 1,492,686.49$ materials, or other causes beyond our control not preventing, within about Pierce Manufacturing Inc. Tim Olley the cost of the construction of the apparatus. PLEASE NOTE THE FOLLOWING ABOUT THIS QUOTATION: hereto attached, delays due to strikes, war or international conflict, failures to obtain chassis, Respectfully Submitted, Payment options are available and are included under separate cover. One of these options customer specifications. Any increased costs incurred by the first party because of future changes changes desired by the purchaser, provided such alterations are interlined prior to the acceptance may save your department a significant amount of money! CALENDAR DAYS after receipt of this order and the acceptance thereof at our office in Appleton, withdraw this proposition. Wisconsin, and to be delivered to you at Chula Vista, CA. to the price set forth above. Unless accepted within 30 days from date, the right is reserved to 59,884.56$ 2,053.19$ Said apparatus and equipment are to be built and shipped in accordance with the specifications 285-300 TOTAL PURCHASE PRICE 746,343.25$ 744,279.56$ APPARATUS COST WITH TAX 10.50$ 1,488,559.12$ in or additions to said DOT or NFPA standards will be passed along to the customer as an addition guidelines for Automotive Fire Apparatus as published at time of bid, except as modified by by the company of the order to purchase, and provided such alterations do not materially affect and regulations in effect at the time of bid, and with all National Fire Protection Association (NFPA) The specifications herein contained shall form a part of the final contract and are subject to The proposal for fire apparatus conforms with all Federal Department of Transportation (DOT) rules PROPOSAL FOR FURNISHING FIRE APPARATUS acceptance by Pierce Manfacturing, Inc., at its corporate office in Appleton, Wisconsin, the Each August 3, 2018 CITY OF CHULA VISTA FIRE DEPARTMENT The undersigned is prepared to manufacture for you, upon an order being placed by you, for final apparatus and equipment herein named and for the following prices: Chula Vista, CA. 91910 Pierce Arrow XT Triple Combination Pumper as per enclosed proposal for delivery sum of 276 Forth Ave. 684,395.00$ 2018-09-18 Agenda Packet Page 249 Sales Representative 2018-09-18 Agenda Packet Page 250 P a g e | 1 September 18, 2018 File ID: 18-0311 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DENYING THE APPEAL BY ROD BISHARAT AND AFFIRMING THE PLANNING COMMISSION’S APPROVAL OF DESIGN REVIEW PERMIT DR15-0037 AND CONDITIONAL USE PERMIT CUP15-0023 TO CONSTRUCT A 2,380 SQUARE-FOOT AUTOMATED CARWASH BUILDING WITH VACUUM STATIONS ON A 0.55 ACRE SITE LOCATED AT 495 TELEGRAPH CANYON ROAD, SUBJECT TO THE CONDITIONS CONTAINED THEREIN RECOMMENDED ACTION Council conduct the public hearing and adopt the resolution. SUMMARY On December 15, 2015, Gene Cipparone Architect, Inc. (Applicant), submitted a Design Review and Conditional Use Permit application for approval of a 2,380 square-foot automated carwash building with vacuum stations and associated parking and landscaping on a 0.55-acre site located at 495 Telegraph Canyon Road (the “Project”). The DR and CUP were approved by the Planning Commission on January 10, 2018. On January 18, 2018, an Appeal of the Planning Commission’s decision was filed by Rod Bisharat (Appellant). The appeal is based on previously stated opposition to the proposed Project due to neighbors’ concerns with the Project features. The Appeal contends that (1) the statements and evidence relied upon by the Planning Commission were inaccurate; and (2) the findings of the Planning Commission are not supported by the information provided. ENVIRONMENTAL REVIEW The Development Services Director has reviewed the Project for compliance with the California Environmental Quality Act (CEQA) and has determined that the Project qualifies for a categorical exemption pursuant to Section 15332 of the State CEQA Guidelines. Thus, no further environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION At its meeting of January 10, 2018, the Planning Commission voted 4-0-0 to approve the Design Review Permit Resolution and the Conditional Use Permit Resolution to develop the subject Site with the proposed Project with the condition that the “Applicant shall replace the 6-ft. wall with a 9-ft. wall along the northwestern portion of the property.” 2018-09-18 Agenda Packet Page 251 P a g e | 2 DISCUSSION On December 15, 2015, the Applicant, Gene Cipparone Architect, Inc., submitted a Design Review (DR) and Conditional Use Permit (CUP) application for approval of a 2,380 square-foot automated carwash building with vacuum stations with associated parking and landscaping on a 0.55-acre site located at 495 Telegraph Canyon Rd. Currently, the site contains a one-story building with two tenants, an auto repair and dry cleaners. Other uses on the site include a Goodwill drop off bin, can and bottle recycling center, and a food truck (see Locator Map, Attachment 1). All existing structures or uses will be removed from the site. Pursuant to Chula Vista Municipal Code (CVMC) Section 19.14, a Conditional Use Permit is required for a carwash. Normally, a project such as this would be approved by the Zoning Administrator. However, due to the issues and concerns raised by an adjacent neighbor, per Section 19.14.050 of the Chula Vista Municipal Code, the Zoning Administrator referred the matter to the Planning Commission for review. On October 4, 2017, as the Project was being reviewed and evaluated by City staff for presentation to the Planning Commission, a letter was received by staff from Procopio, a San Diego land use law firm, on behalf of Judith Wilson, a Chula Vista property owner (the “October Procopio Letter”). The October Procopio Letter contained a series of comments on the Noise Analysis Report. The comments allege that the Project does not comply with the City’s Noise regulations, and that certain findings cannot be made by the approving authority. City staff reviewed the letter, and the City’s Noise Consultant, Eilar Associates, Inc., prepared a memorandum dated October 13, 2017 responding to the comments in the letter (the “October Eilar Memorandum”). The October Eilar Memorandum and the October Procopio Letter were presented to the Planning Commission at its hearing of January 10, 2018, and were included as Attachment’s 4 and 5 of the Planning Commission Staff Report. Staff’s and Eilar Associates, Inc. response to the letter demonstrates that all the evidence to support the findings required by the Project approval have been met and made. Furthermore, staff’s response shows the Project’s consistency with, and implementation of, the vision, objectives and policies of the City’s General Plan and consistency with the development regulations and standards of the CVMC. Between January 4, 2018 and January 9, 2018, prior to the Planning Commission meeting, four letters were submitted to the Planning Commission (see Response Letters to Planning Commission, Attachment 3). One of the letters was from Procopio on behalf of Judith Wilson (the “January Procopio Letter”), and the remaining letters were from Rod Bisharat (the Appellant), Lorna Hardin, and Judith Wilson. The January Procopio Letter again alleged that the Project is inconsistent with the Chula Vista Municipal Code and that the required findings cannot be made. City staff reviewed the letters and the City’s Noise Consultant, Eilar Associates, Inc., prepared a second memorandum letter dated January 9, 2018 rebutting the comments in the letter (the “January Eilar Memorandum”). The January Eilar Memorandum stated that the Project is consistent with and implements the vision, objectives and policies of the City’s General Plan and is consistent with the development regulations and standards of the Chula Vista Municipal Code. Staff reviewed and presented the proposed Project to the Planning Commission at its meeting of January 10, 2018 for consideration and recommended approval. As part of the Agenda packet, staff included a memorandum responding to the October Procopio Letter (see Attachment’s 4 and 5 of the Planning Commission Agenda Packet). The January Procopio Letter and the January Eilar Memorandum, in addition 2018-09-18 Agenda Packet Page 252 P a g e | 3 to letters received from Rod Bisharat, Lorna Hardin, and Judith Wilson, were provided to the Planning Commission on the dais. The comments in the letters were addressed by staff at the Planning Commission hearing. After considering all the information in the Agenda packet, staff’s presentation, and all public testimony, the Planning Commission approved the Project, subject to conditions (see Planning Commission Minutes, Attachment 4). On January 18, 2018, an Appeal of the Planning Commission’s decision was filed by Rod Bisharat (see Attachment 5). The Appeal is based on previously stated opposition to the proposed Project due to neighbors’ concerns with the Project features. The Appeal states that there is (1) factual error in accepting Caltrans’ letter allowing the new entrance on Telegraph Canyon Road to be an enter/exit driveway; (2) factual error in accepting the County of San Diego’s closure letter as evidence of soil at former gas station no longer contaminating the site; (3) findings not supported since no CEQA analysis was done or a traffic study for the impacted intersection of Halecrest Drive and Telegraph Canyon Road; (4) findings not supported since the Planning Commission failed to address, resolve issues, or make findings regarding noise, traffic, driveway entrance/exit, and contaminated soil issues. Staff reviewed the Appeal and determined that: (1) The decision of the Planning Commission was based on an accurate review of the goals, objectives and policies of the City’s General Plan and the CVMC, as well as, the evidence presented to support the decision; (2) The Planning Commission considered all the information related to the Project, the goals, objectives, and policies of the City’s General Plan as well as the provisions of the California Environmental Quality Act. The Appeal does not provide any new reliable information supporting the Appellant’s case. The Appeal is based on the same information that was presented by the Appellants to City staff and the Planning Commission at its meeting of January 10, 2018. The information presented to staff and to the Planning Commission does not support denial of the Project; and (3) The findings contained in the staff report to the Planning Commission and made by the Planning Commission support approval of the Project. Staff finds that there is no basis for granting of the Appeal, and, therefore, staff concludes that the Appeal should be denied. The remainder of this staff report describes the subject site and Project, and provides an analysis of the Appeal and staff’s detailed response to the Appeal. The detailed analysis of the Project and its consistency with the General Plan including the required findings is also contained in the Planning Commission’s agenda packet, which is attached to this staff report and incorporated herein, as well as in the City Council Resolution attached to this Staff Report. 2018-09-18 Agenda Packet Page 253 P a g e | 4 Project Site Characteristics: The 0.55-acre project site (the “Project Site”) is located in the western portion of Chula Vista. The Project Site contains a one-story building with two tenants, an auto repair and dry cleaners. Other uses on the site include a Goodwill drop off bin, can and bottle recycling center, and a food truck, while the remaining portion of the Project Site is vacant. The Project Site is surrounded by commercial retail to the north, east, and south and an apartment complex is located to the west (Attachment 1, Locator Map). Summary of Surrounding Land Uses General Plan Zoning Current Land Use Site: Commercial Office, CO Central Commercial, CCD Auto Shop/Dry Cleaners South: 805 Freeway off-ramp 805 Freeway off-ramp 805 Freeway off-ramp Residential Medium High Apartment Residential, R3GP Multi-Family Condos North: Commercial, CO Commercial Office, COP Dentist Residential RLM Single Family Residential, R1 Single-Family Homes East: Commercial Office, CO Central Commercial, CCD Arco Gas Station West: 805 Freeway 805 Freeway 805 Freeway Project Description The proposal includes a one-story 2,380 square-foot automated carwash building with vacuum stations located within the parking lot. The proposed building consists of an 85-ft. carwash tunnel with skylights above and blowers at the end of the carwash tunnel to dry the vehicles. There are also restrooms, vending machines, office space, and equipment room for the carwash. Customers may access the site through two driveways on Halecrest Drive or Telegraph Canyon and loop around to the western portion of the Project Site to the pay stations. Customers will select their desired carwash selection, pay for the carwash, and then proceed to drive their vehicle through the carwash tunnel. Customers do not exit their vehicles. They also have the option to use a vacuum station to vacuum their vehicles. A canopy extending the full length of the parking spaces provides shade for the vacuum stations. Compliance with Development Standards The following Project Data Table shows the development regulations along with the Applicant’s proposal to meet said requirements: Assessor’s Parcel Number:639-080-68-00 Current Zoning: Central Commercial (CCD) General Plan Designation:Central Office (CO) Lot Area:0.55 acres 2018-09-18 Agenda Packet Page 254 P a g e | 5 PARKING REQUIRED: Parking spaces, broken down as follows: Carwash employees: one space for each employees (3) Carwash Vacuum Station One space per vacuum station (12) Total: 15 parking spaces PARKING PROPOSED: Handicapped= 1 space Regular=14 spaces Total: 15 parking spaces SETBACKS/HEIGHT REQUIRED: Front: 10 feet Exterior Sides: 10 feet Rear: 0 Height: 45 feet SETBACKS/HEIGHT PROPOSED: 197 feet 33 & 224 feet 0 feet 28 feet Appeal: On Thursday, January 18, 2018, Rod Bisharat submitted an Appeal of the Planning Commission’s January 10, 2018 decision. Analysis Staff has reviewed and analyzed the Appeal and offers the following analysis. The Appellant indicates they are appealing “the procedure, actions and approval” of the Project by the Planning Commission because: a) Factual error in accepting Caltrans’ letter allowing the new entrance on Telegraph Canyon Road to be an enter/exit driveway; b) Factual error in accepting County of San Diego’s closure letter as evidence of soil at former gas station no longer contaminating the site; c) Findings not supported since no CEQA analysis was done or a traffic study for the impacted intersection of Halecrest Drive and Telegraph Canyon Road; d) Findings not supported since the Planning Commission failed to address, resolve issues, or make findings regarding noise, traffic, driveway entrance/exit, and contaminated soil issues. Staff’s response to the Appeal is that these statements, as basis for the Appeal, are unsupported and do not represent cause to reverse the Planning Commission’s decision. The statements are unsupported because the Appellants do not provide any new specific evidence indicating that the statements and findings relied upon by the Planning Commission are inaccurate. Appellant’s Appeal reiterates the information proffered at the Planning Commission hearing. No new information has been provided by the Appellant. Staff’s analysis and all the information presented to the Planning Commission in the agenda packet are accurate and supported by substantial evidence in the record of the Planning Commission’s proceedings as well as being based on the vision, objectives and policies of the City’s 2005 General Plan and the development standards, regulations, and design guidelines contained in the Design Manual. As shown in the attached Planning Commission Agenda Packet (Report, Resolutions, and Attachments), the proposed Project is consistent with the vision, objectives and policies of the General Plan and the regulations of the Chula Vista Municipal Code. The General Plan and the Design 2018-09-18 Agenda Packet Page 255 P a g e | 6 Manual envision the area with commercial uses that contribute to create a vibrant and attractive area. Today, the parcel within the CCD Zone is developed with a retail and automobile repair use. Additionally, the proposed Project has been designed to meet the development standards, regulations and design guidelines of the Design Manual. The Project is also fully compliant with the City Noise Ordinance. Exhibit A of the Appeal Letter is presented as the “basis or evidence” for the Appeal. Included are documents that were submitted to the City on January 8, 2018. As indicated earlier in this report, the letter from Rod Bisharat was submitted to the Planning Commission the night of the hearing (January 10th) and was considered by the Planning Commission as part of its decision to adopt the Addendum and approve the Project. Exhibit B of the Appeal Letter, reiterates Judith Wilson’s concerns of inadequate noise control from the Project Site and that the findings required for both a CEQA Exemption and the CUP cannot be made without appropriate and effective noise mitigation. As part of the deliberations at the Planning Commission meeting, City staff addressed the contents of the Appeal letter. Since the responses to the letters submitted to the Planning Commission were delivered verbally by staff at the hearing, staff provides the following written responses for Council’s consideration. On March 20, 2018, a letter was received by staff from Schwartz Semerdjian, a San Diego land use law firm, on behalf of Rod Bisharat, the Appellant (see Schwartz Semerdjian Letter, Attachment 6). The letter from Schwartz Semerdjian again alleged that the Project does not comply with the California Environmental Quality Act (CEQA), City’s Traffic and Noise regulations. The comments in the letter were previously addressed by staff at the Planning Commission hearing. Following is a summarized list of issues in the Appeal letter (in italicized font) followed by a staff response as to how that issue was addressed as part of the Project review process. The below responses were provided verbally at the Planning Commission hearing. Driveway Exit “Factual error- applicant permitted an exit onto Telegraph Canyon Road. Caltrans/City previously precluded this when new entrance lane onto highway #805 was constructed.” Upon initial submittal of the Project, staff routed a set of project plans to Caltrans for their review. Caltrans submitted a letter dated March 9, 2016 regarding their review of the Project. On November 16, 2016, the Applicant contacted Caltrans via e-mail, requesting clarification on the right-of-way fence. On March 21, 2017, at staff’s suggestion, the Applicant provided the final plans to Caltrans for their final review. On March 22, 2017, Caltrans responded via e-mail and a letter dated October 3, 2017 (See Caltrans Letter, Attachment 7). Caltrans again stated they had no opposition to the project and showed an exhibit of the driveway and how it met the minimum length of 50-ft. distance from the freeway on-ramp. The exhibit also showed it as being an entrance/exit driveway. At no time during the review process did Caltrans notify staff that this was to be an entrance only driveway. During the Planning Commission meeting and also in the Appeal letter, Exhibit A, the Appellant stated he contacted Caltrans and was verbally told this should be an entrance only driveway. The Appellant did not 2018-09-18 Agenda Packet Page 256 P a g e | 7 provide a letter from Caltrans to this effect. At the Planning Commission meeting, staff clarified that the driveway is within Caltrans jurisdiction, and if Caltrans wanted it as an entrance only driveway, they have the right to require this, but have yet to inform the City. After the Planning Commission meeting, staff contacted Caltrans asking for clarification. Caltrans provided a letter dated March 16, 2018 (see Caltrans Response Letter, Attachment7) stating the entrance/exit is sufficient with Caltrans. Soil Contamination “Factual error-Commission accepted closure letter as evidence soil at former gas station not contaminated.” “Findings Not Supported- Planning Commission failed to address, resolve issues, or make findings regarding issues set forth… how handling of on site water would not contribute to off site migration from contaminated soils.” A Phase 1 Environmental Site Assessment dated March 23, 2016 was prepared by Ninyo & Moore Geotechnical and Environmental Services Consultants. The report noted a gasoline service station, which formerly operated on the Project Site, had two documented unauthorized releases that impacted the soil. In both instances, the County of San Diego opened a case to resolve the issue. The first case was closed in 2002 and the second case in 2004. The contamination was cleaned up on the site to the satisfaction of the County of San Diego. Since that time, no additional contaminants have been found on the site. The Appellant has not provided factual evidence to the contrary. In an effort to provide further clarification regarding the location of the contaminants on the site, and how the Project will impact the soil, if at all, the Applicant submitted a Soil Management Plan (SMP) dated May 15, 2018 and an Addendum to Soil Management Plan (ASMP) dated June 27, 2018 prepared by CTE, Inc. to the County of San Diego Department of Environmental Health Voluntary Assistance Program (VAP) for review. The County of San Diego requires this report to be submitted for review and approval prior to construction of the Project. The reports describe the reuse and disposal of soils to be excavated on the site during grading. Approximately 550 cubic yards of impacted soil will be generated and either reused on the site (meeting onsite reuse criteria), disposed of at a landfill, or reused as inert soil as determined by the RWQCB Conditional Waiver 10 of the Order R9-2014-0041. Soils meeting hazardous waste criteria will be disposed of at an appropriate facility. A Community Health and Safety Plan (CHSP) was also submitted to the County of San Diego Department of Environmental Health outlining proposed safeguards for the community due to the excavation, stockpiling and loading of soils generated during grading. On July 3, 2018, the SMP, ASMP, and CHSP were approved by the County of San Diego Department of Environmental Health (see County of San Diego Approval Letter, Attachment 8). The Applicant will continue to work with the County of San Diego throughout the grading process to ensure compliance. Traffic “Findings Not Supported. No CEQA analysis done. Project permitted without traffic analysis or traffic study at an impacted intersection at Halecrest and Telegraph Canyon Road.” 2018-09-18 Agenda Packet Page 257 P a g e | 8 The Project was analyzed by the City’s Traffic Engineer and the determination was made that trips associated with the Project do not result in a significant traffic impact (see Attachment 9, City Traffic Engineer Response Letter). There were also concerns regarding queuing on Halecrest Drive from vehicles leaving the Project Site. The Appellant assumed this would block motorists from being able to exit the Arco Gas Station to the east. The City’s Traffic Engineer explained the timing of the traffic signals and how long each vehicle will be waiting at a signal. The City Traffic Engineer indicated that there will be no issues with the queuing on Halecrest Drive. At maximum capacity, one vehicle will exit the carwash tunnel every minute. Customers will then have the option to use the vacuum stations. At the Planning Commission meeting, the Applicant explained the typical operation at other San Diego carwash locations. Approximately 15-20 vehicles are on-site at once and stay on the site for approximately 15-20 minutes after using the vacuum stations. The peak hours for this Project are from 10:00 a.m. to 4:00 p.m. which does not conflict with the intersections peak traffic times of 6:00 a.m. to 9:00 a.m. and 6:30 p.m. to 7:30 p.m. In accordance with City Staff’s suggestion, the Applicant previously agreed to reduce the hours of operation and open at 8:00 a.m. instead of 7:00 a.m., to avoid interfering with rush hour traffic. Therefore, the City’s Traffic Engineer does not see this as an issue and believes the Project will not cause queuing issues on Halecrest Drive. (See Attachment 9, City Traffic Engineer Response Letter). The Appellant has not provided factual evidence to the contrary. Noise “Findings Not Supported- Planning Commission failed to address, resolve issues, or make findings regarding issues set forth in attached Exhibit A and B.” A Noise Analysis Report dated August 7, 2017, by HMMH was prepared to assess the potential noise impacts of the Project. The proposed carwash building is to be constructed along the rear property line. The carwash driers within the carwash tunnel are located along the eastern property line, furthest away from the single-family residential homes. A 6 ft. and 12-ft. solid wall will be provided along the property line as a project feature. The Noise Analysis Report found that the proposed carwash will be consistent with the City of Chula Vista Noise Standards. Several vacuum stations will be provided within the parking lot area for customers to use under a canopy. The mechanical equipment for the vacuum stations will be located within the carwash building and fully enclosed. Per the Project’s Conditions of Approval, no activity shall occur past 8:00 p.m. on the Project Site. Therefore, the carwash and vacuum stations will not exceed the nighttime noise standard for adjacent residential or commercial uses. Hours of operation for the carwash will be from 8:00 a.m.-8:00 p.m., seven days a week. On October 4, 2017, a letter was received from Procopio, representing an adjacent neighbor, requesting revisions to the Noise Analysis Report (Attachment 5 of the Planning Commission Agenda Packet). After review of their concerns, the City’s Third-Party Noise Consultant, Eilar Associates, Inc., provided a response memorandum (Attachment 4 of the Planning Commission Agenda Packet) indicating the acoustical report 2018-09-18 Agenda Packet Page 258 P a g e | 9 prepared by HMMH was adequate. Therefore, no further revisions of the Noise Analysis Report are required. On January 4, 2018, another letter was received from Procopio, representing an adjacent neighbor, requesting revisions to the Noise Analysis Report. Upon review of their concerns, the City’s Third-Party Noise Consultant, Eilar Associates, Inc., provided a second response memorandum, again indicating the acoustical report prepared by HMMH was adequate and rebutting the assertions contained in Procopio’s letters. The two letters and the City’s Third Party Noise Consultant responses were provided to the Planning Commissioners at the hearing. The Appellant has not provided any factual evidence to the contrary. Conclusion The Project will provide new investment and site improvements that will contribute to, revitalize and enhance the Project Site and the neighborhood. The Project’s central location in the City and along one of the City’s major corridors will provide convenient access for residents to obtain a service in close proximity. The Project Site will be developed with a quality project that is consistent with the vision, objectives and policies of the General Plan. The Project has been designed to meet the development regulations and design guidelines of the Design Manual. Regarding the driveway exit, soil contamination, traffic, and noise, the Project has met the City’s requirements. Staff has reviewed and analyzed the Appeal and has determined that the Appeal has no merit and should be denied based on the following: 1) The decision of the Planning Commission was based on an accurate interpretation of the goals, objectives and policies of the City’s General Plan, Design Manual, and the CVMC. 2) The Planning Commission considered all the information and testimony related to the Project, the goals, objectives, and policies of the City’s General Plan, Design Manual, and the Chula Vista Municipal Code, as well as the provisions of the California Environmental Quality Act. The Appeal does not provide any new reliable information supporting the Appellant’s case. 3) The findings contained in the Staff Report to the Planning Commission and made by the Planning Commission, attached hereto and incorporated herein, fully support approval of the Project. Based on this conclusion and all the information contained in this Staff Report, City Council Resolution and Attachments, as well as the Planning Commission Staff Report, Planning Commission Resolutions and Attachments, all incorporated herein by this reference, staff finds that there is no basis for granting of the Appeal, and, therefore, staff concludes that the Appeal should be denied. Staff recommends that the City Council adopt the Resolution presented with this Staff Report and deny the Appeal and affirm the Planning Commission decision to approve the Project. 2018-09-18 Agenda Packet Page 259 P a g e | 10 DECISION-MAKER CONFLICT No Property within 500 feet Staff has reviewed the property holdings of the City Council members and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not present a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov’t Code §87100, et seq.). Staff is not independently aware, and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The Project implements the Economic Vitality, Healthy Community, Strong and Secure Neighborhoods, and Connected Community Strategic goals because the Project represents an investment in the construction of a commercial building and all its infrastructure; the construction of the Project will provide an automated carwash facility; the Project also contributes to the City’s Strategic Goals by providing construction of a development project that is consistent with the goals and objectives of the City’s General Plan and the development standards of the City of Chula Vista Municipal Code in a manner that ensures public health and safety of the community. CURRENT-YEAR FISCAL IMPACT All costs associated with processing the Project, including the Appeal, are borne by the Applicant, resulting in no net impact to the General Fund or Development Services Fund. The Appellant paid the required filing fee for the Appeal. Costs associated with the processing of future implementing permits, will also be recovered by permit and processing fees. ONGOING FISCAL IMPACT There is no ongoing fiscal impact to the City as a result of this action. ATTACHMENTS 1. Locator Map 2. Planning Commission Agenda Packet 3. Response Letters to Planning Commission 4. Planning Commission Minutes 5. Appeal from Rod Bisharat 6. Schwartz SemerdjianLetter 7. Caltrans Response Letter 8. County of San Diego Approval Letter 9. City Traffic Engineer Response Letter Staff Contact: Caroline Young, Associate Planner 2018-09-18 Agenda Packet Page 260 2018-09-18 Agenda Packet Page 261 2018-09-18 Agenda Packet Page 262 2018-09-18 Agenda Packet Page 263 2018-09-18 Agenda Packet Page 264 2018-09-18 Agenda Packet Page 265 2018-09-18 Agenda Packet Page 266 2018-09-18 Agenda Packet Page 267 2018-09-18 Agenda Packet Page 268 2018-09-18 Agenda Packet Page 269 2018-09-18 Agenda Packet Page 270 2018-09-18 Agenda Packet Page 271 2018-09-18 Agenda Packet Page 272 2018-09-18 Agenda Packet Page 273 2018-09-18 Agenda Packet Page 274 2018-09-18 Agenda Packet Page 275 2018-09-18 Agenda Packet Page 276 2018-09-18 Agenda Packet Page 277 2018-09-18 Agenda Packet Page 278 2018-09-18 Agenda Packet Page 279 2018-09-18 Agenda Packet Page 280 2018-09-18 Agenda Packet Page 281 2018-09-18 Agenda Packet Page 282 2018-09-18 Agenda Packet Page 283 2018-09-18 Agenda Packet Page 284 2018-09-18 Agenda Packet Page 285 2018-09-18 Agenda Packet Page 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Agenda Packet Page 404 2018-09-18 Agenda Packet Page 405 2018-09-18 Agenda Packet Page 406 2018-09-18 Agenda Packet Page 407 e Case Closure Summary - Leaking Underground Fuel Storage Tank Program 111. RELEASE AND SITE CHARACTERIZATION INFORMATION IContinuedl H 12571.002 MAXIMUM DOCUMENTED CONTAMINANT CONCENTRATIONS -·BEFORE AND AFTER CLEANUP Contaminant Soll :nam Water1cpm) l.iontamtnant ~Oii :nnm vvater mom1 Set ore Attar Bero re Aner i:Jefore "ner aero re After TPH (Gas) 2400 2400 NIA NIA Ettwlbennn& 9.3 9.3 NIA N/A .. Benzene <2 <2 NIA N/A Xv lane 200. 200 NIA N/A Toluene 11 11 N/A NIA MTaE <14 <14 NIA : NIA Comments: Soll samples taken during dispenser upgrades revealed Total Petroleum Hydrocarbon contamination beneath dispensers at approximately 3.5 feet below ground surface (bgs). Su sequent sampling from soil borings drilled to 40 bgs revealed contaminant concentrations are below laboratory detection lev11ls Indicating that the contamination Is restricted to shallow depths. Groundwater was not encountered In any of the borings drilled during the assessmenl The consultant states that approximately 20 cubic yards of contaminated soil with concentrations exceeding 1 DO mg/kg remains onslte. From the lnfonnatlon submitted as part of the assessment, there appear& to be no risk to human health or th& environment and no cleanup.ls required. Case 001 {closed In 1997~ Involved contamination from underground &torage tanks. Soll vapor extraction was performed for thr~ yea I"$ and conflrmaUon sampl11s taken In 1997 revealed that rembdlatlon was successful. . • IV CLOSURE . Does comoleted corrocUve ac::tJon protect exlstlna beneflc:lal uses oer the Realonal Board Basin Plan? Yes Does comnleted corrective action nrotect Potential beneficial usas oer the Reafonal Board 8aaln Plan? Yes Does corrective action protect public health for current rand use? Yes Case overslaht comoleted based uoan th11 current/future site use as a aas station. Site Management Requirements: Any contaminated soil excavated as part of subsurface construction work must be managed In accordance with the legal requirements at that time. I Shnuld corrective action be reviewed If land use chanaes? Yes .. Decommissioned: No { Number Decommissioned: NIA List Enforcement Actions Taken: Notice of Corrective Action and Relmbul'$ement Resoonslbllltv List Enforcement Actions Resclntfed: NIA V. LOCAL AGENCY REPRESENTATIVE DATA Date Submitted to RB: NIA $Olis nl CB$e RWQCB Staff ~a_me: NIA TIUo: Hydrogeologlst Land and Water Qual Date: ··~ -<(-. RB Res onse: NIA .Tltle: NIA I Number Retained: N/A ····-... ·-- Division Date: N/A VII. ~_[)DITIONf.L COMMENT~1 OATA1 ETC. I Thi• ~O.,moot '"'In• 'Nlotod CASE CLO:: .. LOTTER, '""' be ""''"'" by tho lood •gooey ",.: ol llio offloioi ,., :lo. .. I DEH:HM·9152 (Rev. 3196) Page 2 of 2 2018-09-18 Agenda Packet Page 408 2018-09-18 Agenda PacketPage 409 2018-09-18 Agenda PacketPage 410 2018-09-18 Agenda PacketPage 411 Prepared by: Amelia Giacalone Transportation Planner Ill Jorge Cuyuch Transportation Engineer I TRAFFIC IMPACT ANALYSIS SHARP CHULA VISTA MEDICAL CENTER OCEAN VIEW TOWER Chula Vista, California March 22, 2016 LLG Ref. 3-15-2536 Under the Supervision of: John Boarman, P. E. Principal LINSCOTT LAW & GREENSPAN e ng f 11 e e u Linscott. Law & Greenspan, Engineers 4542 Ruffner Street Suite 100 San Diego, CA 92111 858.300.880() T 858.300.8810 F www.llgengineers.com 2018-09-18 Agenda Packet Page 412 Intersection 1. Telegraph Canyon Road I I- 805 SB Ramps 2. Telegraph Canyon Road I I- 805 NB Ramps 3. Telegraph Canyon Road I Oleander Avenue 4. Telegraph Canyon Road I Medical Center Drive 5. Telegraph Canyon Road I Heritage Road 6. Medical Center Court I Medical Center Drive 7. Medical Center Court I Loop Road Access West 8. Medical Center Court I Loop Road Access East 9. Medical Center Court I Main Hospital Dwy 10. E Palomar Street I Medical Center Drive 11. E Palomar Street I Medical Center Court 12. E Palomar Street I Heritage Road 13. Olympic Parkway I I-805 SB Ramps LINSCOTT, LAW & GREENSPAN, engineers TABLE 10-1 NEAR TERM INTERSECTION OPERATIONS Control Peak Type Hour Signal AM PM Signal AM PM Signal AM PM Signal AM PM Signal AM PM Sig1rnl AM PM owscc AM PM owsc AM PM owsc AM PM Signal AM PM Signal d AM PM Signal AM PM Signal AM PM 44 Near Term Near Term+ Project Project %of Delay• 12.0 37.3 46.6 63.1 25.3 26.2 28.0 34.4 54.1 45.9 21.8 25.2 14.5 16.7 13.8 15.9 15.3 11.4 33.2 50.8 9.0 10.9 97.3 51.2 63.8 84.2 Impact Entering Type LO Sb Delay LOS Volume {>5%) B 12.0 B 1% D 37.8 D 1% None D 47.1 D 1% E 65.7 E 1% Cum I c 25.6 c 1% c 26.6 c 1% None c 29.7 c 2% c 38.3 D None 3% D 54.8 D 0% D 46.2 D 1% None c 30.9 c 11% c 43.0 D 11% None B 15.9 c 17% c 33.7 D 21% None B 20.3 c 15% None c 21.4 c 18% c 21.9 c 18% None B 13.5 B 22% c 33.4 c 4% D 52.0 D 4% None A 9.3 A 3% B 11.6 None B 3% F 97.7 F 1% Cum I D 51.8 D 1% E 64.0 E 0% F 85.7 0% Cum I F LLG Ref. 3-15-2536 Sharp Chula Vista Medical Center Ocean View Tower 2018-09-18 Agenda Packet Page 413 TABLE 11-2 LONG TERM WITH PROJECT STREET SEGMENT OPERATIONS Long-Term Significance Criteria with Project Street Segment Classification LOSC Impact Capaciif ProjectADT Project% of Type AD Tb Lose Entering >800 Volume (>5%) Telegraph Canyon Road Halecrest Drive to Oleander A venue 7-Lane Expressway 61,250 70,900 E 635 1% Cum I Oleander A venue to Medical Center Drive 6-Lane Prime Arterial 50,000 65,800 F 828 1% Cuml Medical Center Drive to Heritage Road 6-Lane Prime Arterial 50,000 52,500 D 524 1% None Medical Center Drive Telegraph Canyon Road to Medical Center Class I Collector 22,000 24,400 D 1,490 6% None Court Medical Center Court to E. Palomar Street Class I Collector 22,000 11,800 A 773 7% None Medical Center Court East of Medical Center Drive Class II Collector 12,000 14,400 E 2,263 16% Direct North ofE. Palomar Street Class II Collector 12,000 5,600 A 497 9% None E. Palomar Street Oleander A venue to Medical Center Drive 4-Lane Major Road 30,000 17,800 A 359 2% None Medical Center Drive to Medical Center 4-Lane Major Road 30,000 17,900 Court A 0 0% None Medical Center Court to Heritage Road 4-Lane Major Road 30,000 14,100 A 497 4% None Olympic Parkway 1-805 Ramps to Oleander Avenue 6-Lane Prime Arterial 50,000 46,300 c 331 1% None Oleander Avenue to Brandywine Avenue 6-Lane Prime Arterial 50,000 48,800 c 276 1% None ~ LiNSCOn, LAW & GREENSPAN, engineers LLG Ref 3-15-2536 53 Sharp Chula Vista Medical Center Ocean View Tower Re0~G.·.Rer,x1.2":;<:; -Re"-1St·J l\·farcl: ~2 >J; t• i ::·%:~ ,i,,_,,__-... 2018-09-18 Agenda Packet Page 414 with LOS A representing the best operating conditions and LOS F representing the worst. Level of service designation is reported differently for signalized and un-signalized intersections, as well as for roadway segments. In the 2010 Highway Capacity Manual (HCM), Level of Service for signalized intersections is defined in terms of delay. The level of service analysis results in seconds of delay expressed in terms of letters A through F. Delay is a measure of driver discomfort, frustration, fuel consumption, and lost travel time. Table 4-1 summarizes the signalized intersections levels of service descriptions. 4.3. 1 Signalized Intersections Table 4-2 depicts the criteria, which are based on the overall average control delay for a signalized intersection. The level of service criteria is stated in terms of the average control delay per vehicle for a 15-minute analysis period. Control delay includes initial deceleration delay, queue move-up time, stopped delay, and final acceleration delay. Level of service A describes operations with very low delay, (i.e. less than I 0.0 seconds per vehicle). This occurs when progression is extremely favorable, and most vehicles arrive during the green phase. Most vehicles do not stop at all. Short cycle lengths may also contribute to low delay. Level of service B describes operations with delay in the range 10.1 seconds and 20.0 seconds per vehicle. This generally occurs with good progression and/or short cycle lengths. More vehicles stop than for LOS A, causing higher levels of Average delay. Level of service C describes operations with delay in the range 20.1 seconds and 35.0 seconds per vehicle. These higher delays may result from fair progression and/or longer cycle lengths. Individual cycle failures may begin to appear. The number of vehicles stopping is significant at this level, although many still pass through the intersection without stopping. Level of service D describes operations with delay in the range 35.1 seconds and 55.0 seconds per vehicle. At level D, the influence of congestion becomes more noticeable. Longer delays may result from some combination of unfavorable progression, long cycle lengths, or higher v/c ratios. Many vehicles stop, and the proportion of vehicles not stopping declines. Individual cycle failures are more frequent. Level of service E describes operations with delay in the range of 55.1 seconds to 80.0 seconds per vehicle. This is considered to be the limit of acceptable delay. These high delay values generally indicate poor progression, long cycle lengths, and high v/c ratios. Individual cycle failures are frequent occurrences. Level of service F describes operations with delay in excess of over 80.0 seconds per vehicle. This is considered to be unacceptable to most drivers. This condition often occurs with over-saturation (i.e., when arrival flow rates exceed the capacity of the intersection). It may also occur at high v/c ratios below 1.00 with many individual cycle failures. Poor progression and long cycle lengths may also be major contributing causes to such delay levels LINSCOTT, LAW & GREENSPAN, engineers 12 LLG Ref. 3-15-2536 Sharp Chula Vista Medical Center Ocean View Tower 2018-09-18 Agenda Packet Page 415 2018-09-18 Agenda Packet Page 416 2018-09-18 Agenda Packet Page 417 2018-09-18 Agenda Packet Page 418 2018-09-18 Agenda Packet Page 419 3/19/2018 3129 Cauby St - Google Maps https://www.google.com/maps/place/3350+Rosecrans+St,+San+Diego,+CA+92110/@32.7487479,-117.2076886,3a,75y,54.47h,82.32t/data=!3m6!1e1!…1/1 Image capture: Apr 2017 © 2018 Google Street View - Apr 2017 San Diego, California Google, Inc. 3129 Cauby St 2018-09-18 Agenda Packet Page 420 3/19/2018 3001 Cauby St - Google Maps https://www.google.com/maps/place/3350+Rosecrans+St,+San+Diego,+CA+92110/@32.7486845,-117.2075808,3a,75y,8.56h,81.49t/data=!3m6!1e1!3…1/1 Image capture: Apr 2017 © 2018 Google Street View - Apr 2017 San Diego, California Google, Inc. 3001 Cauby St 2018-09-18 Agenda Packet Page 421 2018-09-18 Agenda Packet Page 422 2018-09-18 Agenda Packet Page 423 “Environmental and public health through leadership, partnership and science” July 3, 2018 Mr. Neil Capin Rosecrans & Caubly, LLC 1835 Palm Ave San Diego, CA 92154 Dear Mr. Capin: VOLUNTARY ASSISTANCE PROGRAM - DEH2018-LSAM-000489 RESPONSE LETTER PROPOSED WASH N GO 495 TELEGRAPH CANYON RD., CHULA VISTA, CA 91910 Staff of the Department of Environmental Health, Site Assessment and Mitigation Program (SAM) have reviewed the May 15, 2018 Soil Management Plan (SMP) and June 27, 2018 Addendum to Soil Management Plan (ASMP) prepared by CTE, Inc. The reports describe the scope of work for the segregation, reuse and disposal of soils to be excavated at this site during a grading project for the construction of future car wash facility. It is estimated that at least 550 cubic yards of impacted soil will be generated from the site during this project. Impacted soils meeting onsite reuse criteria will be placed in areas beneath a minimum of one foot below building slab and at least two feet from utility trenches or open ground (if applicable). Excess contaminated soils may also be disposed of at a landfill or reused as inert soil as determined by the RWQCB Conditional Waiver 10 of Order R9-2014-0041. Soils meeting hazardous waste criteria are encountered, would be disposed of at an appropriate facility. In addition, SAM staff have also reviewed the Community Health and Safety Plan (CHSP), also submitted in the report. The report addresses proposed safeguards for the community due to the excavation, stockpiling and loading of soils generated during the grading project. The report describes the proposed methods for the application of water to control dust, the use of Photo Ionization Detectors (PID) to monitor hydrocarbon vapors and the protocols to be followed if PID readings at or above 25 ppm are noted. The report further discusses methods of noise control, BMP’s, emergency planning and public notification. The SMP, ASMP, and CHSP are approved. If you have any questions, please call me at (858) 505-6856. Sincerely, Ewan Moffat PG 7207, CHg 972, Project Manager Site Assessment and Mitigation Program cc: Mr. Gregory F. Rzonca, CTE Inc. DEPARTMENT OF ENVIRONMENTAL HEALTH LAND AND WATER QUALITY DIVISION P.O. BOX 129261, SAN DIEGO, CA 92112-9261 Phone: (858) 565-5173 Fax: (858) 694-3670 www.sdcdeh.org AMY HARBERT ASSISTANT DIRECTOR ELISE ROTHSCHILD DIRECTOR 2018-09-18 Agenda Packet Page 424 2018-09-18 Agenda Packet Page 425 2018-09-18 Agenda Packet Page 426 2018-09-18 Agenda Packet Page 427 2018-09-18 Agenda Packet Page 428 2018-09-18 Agenda Packet Page 429 Attachment 10 RESOLUTION NO. 2018- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DENYING THE APPEAL BY ROD BISHARAT AND AFFIRMING THE PLANNING COMMISSION’S APPROVAL OF DESIGN REVIEW PERMIT DR15-0037 AND CONDITIONAL USE PERMIT CUP15-0023 TO CONSTRUCT A 2,380 SQUARE-FOOT AUTOMATED CARWASH BUILDING WITH VACUUM STATIONS ON A 0.55 ACRE SITE LOCATED AT 495 TELEGRAPH CANYON ROAD, SUBJECT TO THE CONDITIONS CONTAINED THEREIN WHEREAS, the parcel of land which is the subject matter of this Resolution is depicted in Exhibit “A,” attached hereto and incorporated herein by this reference, and for the purpose of general description consists of 0.55 acres located at 495 Telegraph Canyon Road, as identified in County Assessor Records as Assessor’s Parcel Numbers 639-080-68-00 (Project Site); and WHEREAS, on December 15, 2015 duly verified applications requesting approval of Design Review Application DR15-0037 and Conditional Use Permit Application CUP15-0023 were filed with the City of Chula Vista Development Services Department by Gene Cipparone Architect, Inc., (Applicant); and WHEREAS, said Applicant requests approval of Design Review Permit DR17-0037 and Conditional Use Permit CUP15-0023 to construct a 2,380 square-foot automated carwash building with vacuum stations with associated parking and landscaping (Project) on the Project Site; and WHEREAS, a hearing time and place was set by the Planning Commission for consideration of the Project and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City, and its mailing to property owners and residents within 500 feet of the exterior boundaries of the Project Site, at least ten (10) days prior to the hearing; and WHEREAS, the duly called and noticed public hearing on the Project was held before the Planning Commission of the City of Chula Vista on January 10, 2018 in the Council Chambers, 276 Fourth Avenue, at 6:00 p.m. to hear public testimony and staffs’ presentation; and WHEREAS, the Planning Commission on said date reviewed the Project for compliance with the California Environmental Quality Act (CEQA) and determined that the Project qualifies for a Categorical Exemption pursuant to Section 15332 of the State CEQA Guidelines; and WHEREAS, on January 18, 2018, Rod Bisharat filed an appeal of the Planning Commission’s Decision to approve Design Review Permit DR17-0015 and Conditional Use Permit CUP15-0023 (the “Appeal”); and 2018-09-18 Agenda Packet Page 430 Resolution No. 2018- ______ Page 2 WHEREAS, the City Clerk set the time and place for the public hearing on the Appeal and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the City, its mailing to property owners within 500 feet of the exterior boundary of the Project Site at least 10 days prior to the hearing; and WHEREAS, the Chula Vista City Council held a duly noticed public hearing to consider said Appeal at the time and place as advertised, namely September 18, 2018 at 5:00 p.m. in the Council Chambers, 276 Fourth Avenue. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby find and determine that under the provisions of Chula Vista Municipal Code (CVMC) Sections 19.14.588.B and 19.14.130, the Appeal that is the subject of this Resolution is hereby denied and the decision of the Planning Commission to adopt the Addendum and approve the Project is hereby affirmed, with findings as follows: I. ENVIRONMENTAL REVIEW That the City Council of the City of Chula Vista, in the exercise of its independent judgment, as set forth in the record of its proceedings, considered the Preliminary Environmental Review of the Project conducted by the Director of Development Services for compliance with the California Environmental Quality Act (CEQA), and has determined that the Project qualifies for a Categorical Exemption pursuant to Section 15332 of the State CEQA Guidelines and that the record of proceedings provides no evidence that a Section 15300.2 Exception to said Section 15332 Categorical Exemption exists. II. CONFORMANCE WITH CHULA VISTA MUNICIPAL CODE That the City Council of the City of Chula Vista, in the exercise of its independent judgment, as set forth in the record of its proceedings does hereby adopt all findings made by the Planning Commission contained in Design Review Permit Resolution DR15-0037 and Conditional Use Permit Resolution CUP15-0023 for the Project, attached hereto and incorporated herein by this reference, as if said findings were their own. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista does hereby find and determine that the Appeal that is the subject of this Resolution is hereby DENIED and that the determination of the Planning Commission is hereby AFFIRMED, in accordance with the applicable development standards, regulation and guidelines of the Chula Vista Municipal Code and the Conditions of Approval specified in Planning Commission Resolutions DR17-0037 and CUP15-0023 dated January 10, 2018, attached hereto and incorporated herein by this reference (Exhibit “B”), as may be modified hereby. Presented by:Approved as to form by: ___________________________________________________________ Kelly Broughton, FASLA Glen R. Googins Director of Development Services City Attorney 2018-09-18 Agenda Packet Page 431 2018-09-18 Agenda Packet Page 432 2018-09-18 Agenda Packet Page 433 2018-09-18 Agenda Packet Page 434 2018-09-18 Agenda Packet Page 435 2018-09-18 Agenda Packet Page 436 2018-09-18 Agenda Packet Page 437 2018-09-18 Agenda Packet Page 438 2018-09-18 Agenda Packet Page 439 2018-09-18 Agenda Packet Page 440 2018-09-18 Agenda Packet Page 441 2018-09-18 Agenda Packet Page 442 2018-09-18 Agenda Packet Page 443 2018-09-18 Agenda Packet Page 444 2018-09-18 Agenda Packet Page 445 2018-09-18 Agenda Packet Page 446 2018-09-18 Agenda Packet Page 447 Item 6 - Additional Information 2018-09-18 Agenda Packet Page 448 Item 6 - Additional Information 2018-09-18 Agenda Packet Page 449 Item 6 - Additional Information 2018-09-18 Agenda Packet Page 450 Item 6 - Additional Information 2018-09-18 Agenda Packet Page 451 P a g e | 1 September 18, 2018 File ID: 18-0364 TITLE PRESENTATION ON THE STATUS OFTHE MILLENIA (EASTERN URBAN CENTER) FIRE STATION NO. 10 A.RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING CONSTRUCTION OF THE MILLENIA (EASTERN URBAN CENTER) FIRE STATION NO. 10 B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A SOLE SOURCE PURCHASE WITH SOUTH COAST FIRE EQUIPMENT AND A 10-YEAR LEASE PURCHASE AGREEMENT WITH JPMORGAN CHASE BANK, N.A. FOR THE ACQUISITION OF ONE (1) PIERCE ARROW XT TRIPLE COMBINATION PUMPER/FIRE ENGINE AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE THE FINAL PURCHASE AND LEASE AGREEMENT RECOMMENDED ACTION Council hear the report and adopt the resolutions. SUMMARY As part of the Eastern Urban Center (“Millenia”) Sectional Planning Area (“SPA”) Plan, SLF IV-Millenia LLC (“Developer”)is obligated to design and construct a Fire Station within the master development. Tonight’s presentation is being provided to update City Council and the community on the status of the project, to request Council’s authorization to proceed with construction, and to approve the purchase of the initial fire apparatus for the fire station. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project was adequately covered in previously adopted Final Environmental Impact Report for the Millenia SPA (FEIR 07-01) (SCH#2007041074). BOARD/COMMISSION/COMMITTEE RECOMMENDATION None. DISCUSSION Background The Millenia project (“Project”) is located at the southwest corner of Birch Road and Eastlake Parkway, east of the SR 125 toll road. The fire station site is a 1.068-acre parcel located at the southeast corner of Millenia Avenue and Stylus Street in Millenia (see Locator Map, Attachment 1), and is bounded by three streets; 2018-09-18 Agenda Packet Page 452 P a g e | 2 Millenia Avenue to the west, Stylus Street to the north, Montage Avenue to the east, and a private development lot to the south. The private development lot to the south has approved City entitlements to construct two office buildings totaling approximately 325,000 square feet plus a six-level parking structure. The fire station site and the office project share a driveway, which is located on the fire station site, and extends from Montage Avenue to Millenia Avenue. The site is currently rough-graded and pad-certified with sidewalks and streetscape landscaping installed on all street frontages. The streets and sidewalks surrounding the site are under construction by the Developer and will be completed prior to the start of construction of the fire station, anticipated in early 2019. The design and construction of the Millenia Fire Station is being managed by the Developer and will be turned over to the City upon completion and acceptance by the City. The Developer will receive a combination of credits against their Public Facilities Development Impact Fee (PFDIF) obligation and reimbursements from the PFDIF program, per the Development Agreement for the Eastern Urban Center (Millenia), as clarified. Design/Build Team and Process In March 2018 the Developer issued a Request for Proposals (RFP) from Design-Build Entities to provide pre-construction, design, value engineering, constructability review, construction management, construction and operations, and startup and commissioning services. Included in the RFP was a program document prepared by the Fire Department detailing specific requirements and priorities. The team of EC Constructors, Inc. and JKA Architecture was selected and entered under contract. Since May the team has been working with city staff to develop schematics for the Fire Station. The Millenia Fire Station project will consist of a two-story structure of approximately 12,500 square feet. The first floor of the structure will include: three double deep drive through apparatus bays, operational rooms, and offices with a public restroom. The second floor will include crew dormitory rooms and associated living space and kitchen for on-duty staff. The exterior will include a secured parking area,a truck wash area, and other associated operational features. In addition, the project will include a photovoltaic system designed to provide 100 percent of the energy requirements of the project. The project design and materials will be durable, functional and compatible with the character of the surrounding community (see Preliminary Site Plan and Proposed Perspectives, Attachments 2 and 3). In addition to the fire station itself, the project will include the installation of an emergency vehicle override signal on Millenia Avenue. Conduits for the signal were installed as part of the Developer’s construction of Millenia Avenue. The project will also include construction of a median break to facilitate left hand turns out of the station onto Millenia Avenue. Neighborhood Meeting The Developer conducted a neighborhood meeting on August 1, 2018 to present the proposed Fire Station design and an overall update on the Millenia development. Outreach for this type of public facility is not required by any policy, however the meeting was conducted to ensure the public and City were aware of the status of the fire stationdesign and construction schedule. For consistency with other activity in the Millenia project, the meeting was noticed in the paper and mailed to residents (over 1,000 residents) and Home Owner Associations as identified inCouncil Policy No. 400-02. The meeting provided over ten (10) residents 2018-09-18 Agenda Packet Page 453 P a g e | 3 with an opportunity to speak with the master developer, Fire Station design build team and city staff froma variety of departments. No substantive comments were provided regarding the Fire Station. Construction Timeline The project is currently being reviewed by Development Services staff to ensure that it meets the requirements of the SPA for the fire station to be a location for “Iconic Architecture” and be consistent with the overall vision for Millenia. The design review will be approved administratively this fall. It is anticipated that the project will submit for building permits by end of this year and construction will begin in early 2019. Construction is anticipated to take one year, and Fire Station #10 is estimated to open in early 2020. Public Facility Construction Priorities and Authorization In conjunction with the 2011 Growth Management Oversight Commission (GMOC) Report’s Recommendations and Implementing Actions, a new process for prioritizingpublic facility construction was established. The new process requires that PFDIF capital projects be brought forward to Council for authorization to proceed prior to significant expenditure of project funds. At that time, a list of other PFDIF eligible projects should be presented to Council, along with staff’s justification for moving forward with the proposed project. The prioritization of PFDIF projects reported to GMOC and City Council has not changed since 2011, and was reported most recently in the 2017 GMOC Report. The PFDIF capital projects are prioritized as follows: Priority Description 1 Rancho del Rey Library 2 Millenia Fire Station 3/4 Otay Ranch Village 4 Aquatics Center and Recreation Facility 5 Millenia Library Staff noted in the 2017 GMOC Report that a reprioritization of PFDIF projects to emphasize public safety was anticipated. Tonight’s action represents the first application of the new PFDIF capital project authorization process. The process was envisioned to coincide with Council action appropriating funds or approving a construction contract. However, because of the delivery model of the Millenia Fire Station, no such action will be taken by the City Council for this project. As a result, staff is asking for Council’s authorization to proceed with construction of the Millenia Fire Station, in advance of the Rancho del Rey Library, with tonight’s action. If approved, the new prioritization of PFDIF facilities would be as follows: 2018-09-18 Agenda Packet Page 454 P a g e | 4 Priority Description 1 Millenia Fire Station 2 Rancho del Rey Library 3/4 Otay Ranch Village 4 Aquatics Center and Recreation Facility 5 Millenia Library The change in prioritization is recommended because the Millenia Fire Station is necessary to provide life safety services in the eastern territories. This priority consideration was previously presented to City Council as Recommendation 2 on page 11 of the Council adopted Public Safety Expenditure Plan, adopted in February of 2018. The Millenia Fire Station will provide four firefighters (1 Fire Captain, 1 Fire Engineer, 1 Firefighter/Paramedic, and 1 Firefighter/EMT) daily, adding 12 fulltime employees to the Fire Department’s authorized staffing. This recommendation is driven by development and growth in the Millenia and University Village areas of the City. The need to provide the Millenia Fire Station has already been triggered, per the adopted Public Facilities Financing Plan for the Eastern Urban Center (Millenia). In addition to serving the rapidly developing Millenia development, the new fire station willalsoenhance the City’s fire service system, improving overall response times in the City’s eastern territories. While the GMOC threshold reporting for Library Facilities continues to indicate the need for additional facilities, the provision of public safety has been, and continues to be, the City’s highest priority. For these reasons, staff recommends that Council authorize the construction of the Millenia Fire Station in advance of the Rancho del Rey Library. Implementation of this recommendation is forecasted to improve service delivery performance outcomes as follows: Metric Current Citywide Performance Citywide Performance Improvement Greatest Geographic Improvement East*Fire Station 7 EMS: First Unit 81.1%81.5% (+) 2.2% (+) 3.8% Fire: First Unit 44.7%45.4% (+) 3.4% (+) 0.0% Fire: EFF 49.7%51.7% (+) 10.2% (+) 13.2% *East includes Fire Stations 6, 7, & 8. Fire Apparatus Operation of the Millenia Fire Station necessitates the purchase of new fire apparatus. As identified in the Fire Facility Master Plan, the initial fire apparatus to be assigned to the Millenia Fire Station is a triple combination pumper. This resource will allow personnel to respond to the fire, rescue, and emergency medical needs of the Millenia community and will integrate into the Fire Department’s response network. All costs associated with fire apparatus at the Millenia Fire Station will be borne by the PFDIF fund (no General Fund contribution). Pursuant to Chula Vista Municipal Code Section 2.56.070.B.4, a sole source purchase exception to the City’s formal competitive bidding requirements may be made for equipment purchases exceeding $100,000, when a commodity is available from only one known source as the result of unique market conditions. A sole 2018-09-18 Agenda Packet Page 455 P a g e | 5 source purchase through South Coast Fire Equipmentmeets this requirement andis recommended. The Fire Department uses South Coast Fire Equipment to purchase frontline operational emergency response vehicles for several critical reasons: 1.Equipment Standardization: Providing the same type of emergency response apparatus is critical in order to provide a standard approach to training all personnel. This ensures that Fire Department personnel can operate fire apparatus at a competent level while under duress of emergency response. 2.Safety: Fire personnel are regularlymoved from one fire station to another. Maintaining a fleet of fire apparatus that operate consistently throughout our fleet ensures driver/operators and firefighters can operate and locate equipment in an efficient and timely manner while working in emergency situations. 3.Operational Efficiency and interoperability: The City and neighboring fire agencies respond to emergencies together on a daily basis. The purchase of a Pierce Arrow XT Triple Combination Pumper for the Millenia Fire Station supports the operation of the Fire Station and improves the overall quality, reliability, cost effectiveness, fleet depth, and safety of the City’s fire apparatus fleet. The total cost to purchase one Pierce Arrow XT Triple Combination Pumper from South Coast Fire Equipment is $720,785.92 (see Attachment 4). Financing the apparatus via a 10-year lease purchase agreement with JP Morgan Chase is recommended (see Attachment 5). The interest rate quoted by JP Morgan is 3.57%; however, this rate is subject to change based on market conditions until the City locks the rate at the time of execution of the final agreement. The quoted interest rate results in an estimated annual payment of $86,576. The total purchase price, including financing charges, is estimated to total $865,756 (assumes interest charges totaling $148,275). The first lease payment for the apparatus will be made in fiscal year 2020. As a result, no appropriation is recommended at this time. Lease payments will be included in future annual PFDIF budget appropriations. Equipment to outfit the apparatus is not included in the agreement with South Coast Fire Equipment and will be a future expense. An appropriation request for this purpose will be made once the delivery timeline for the apparatus is determined. As with the apparatus, outfitting costs will be borne solely by the PFDIF fund. DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found that no City Council Member has property holdings within 500 feet of the boundaries of the property which is the subject of this action. Consequently, this item does not represent a disqualifying real property-related financial conflict of interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political Reform Act (Cal. Gov. Code section 87100 et seq.). Staff is not independently aware, nor has staff been informed by any City Council Member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. 2018-09-18 Agenda Packet Page 456 P a g e | 6 LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The Millenia Fire Station supports the Strong and Secure Neighborhoods goal by providing fire services in a growing area of the city. CURRENT-YEAR FISCAL IMPACT All costs associated with preparing and processing the design application will be funded by the PFDIF program via credits awarded to the Developer. There is no current year fiscal impact resulting from the purchase of fire apparatus for the Millenia Fire Station. ONGOING FISCAL IMPACT The Developer will be eligible for credit against their PFDIF obligation for all funds expended constructing the Millenia Fire Station. Pursuant to the Development Agreement for the Eastern Urban Center (Millenia), the City has already provided PFDIF credits to the Developer for the acquisition of the fire station site ($1.135 million). The PFDIF program will directly expend funds for minor furnishings, fixtures, and equipment (FF&E). In addition, the PFDIF will directly fund the purchase of apparatus to be sited at the station. The total budget for the fire station is currently projected to total $10.6 million, inclusive of facility construction, staff time, minor FF&E, land acquisition, and apparatus. The final budget will be determined upon establishment of the Guaranteed Maximum Price (GMP) for the project and the execution of the lease purchase agreement for the apparatus. The total cost to purchase one Pierce Arrow XT Triple Combination Pumper from South Coast Fire Equipment is $720,785.92. The interest rate quoted by JP Morgan for the proposed 10-year lease purchase is 3.57%; however, this rate is subject to change based on market conditions until the City locks the rate at the time of execution of the final agreement. The first lease payment for the apparatus will be made in fiscal year 2020. As a result, no appropriation is recommended at this time. Lease payment funds will be included in future annual budgets for the PFDIF fund(no General Fund contribution). Equipment to outfit the apparatus is not included in the agreement with South Coast Fire Equipment and will be a future expense. An appropriation request for this purpose will be made once the delivery timeline for the apparatus is determined. As with the apparatus, outfitting costs will be borne solely by the PFDIF fund. Operations Millenia Fire Station operations are anticipated to cost the City’s General Fund approximately $2.1 million annually (fiscal year 2020 dollars), assuming 4-0 staffing, beginning in fiscal year 2020. A partial offset for interim operations and maintenance of the facilitymay be funded by the Developer, pursuant to Section 9 of Exhibit E of the Development Agreement. Funds to be contributed toward interim operations and maintenance will be determined by a fiscal analysis of project generated revenues and the City’s cost of providing services to the Millenia project. The Developer’s fair share responsibility has been capped at 25% of the operating and maintenance costs of an engine company and 25% of the operating and maintenance costs of a ladder truck company. The total cumulative Developer contribution for interim operations and maintenance of the facility is capped at $1.75 million. 2018-09-18 Agenda Packet Page 457 P a g e | 7 ATTACHMENTS 1. Locator Map 2.Preliminary Site Plan 3. Proposed Perspectives 4. Triple Combination Pumper Quote 5. JP Morgan Lease Purchase Agreement Staff Contacts: Stacey Kurz, Senior Project Coordinator, Development Service Department; Jonathan Salsman, Senior Civil Engineer, Public Works Department; Harry Muns, Deputy Fire Chief, Fire Department; and Tiffany Allen, Assistant Director of Development Services 2018-09-18 Agenda Packet Page 458 Attachment 1 – Locator Map 2018-09-18 Agenda Packet Page 459 Attachment 2 – Preliminary Site Plan 2018-09-18 Agenda Packet Page 460 Attachment 3 – Proposed Perspectives 2018-09-18 Agenda Packet Page 461 Extension One (1 ) 684,395.00$ 100% Prepayment Discount (23,501.00)$ APPARATUS COST 660,894.00$ Sales Tax @ 8.750%57,828.23$ Performance Bond 2,053.19$ California Tire Fee 10.50$ 720,785.92$ Less 100% pre-payment at Contract Signing 720,785.92$ BALANCE DUE AT DELIVERY $0.00 money down and no payments for one (1) year if desired. Discount for the 100% pre-payment option includes discounts for the chassis, interest, aerial (if applicable), and flooring charges. Any item added after this option is elected will come at additional cost and will be added to the final invoice. 100% PRE-PAYMENT DISCOUNT SHOWN ABOVE IS AVAILABLE IN TWO WAYS: a) b) * * If your department makes a 100% cash pre-payment at contract signing. If your department signs up for a lease-purchase with Oshkosh Capital. This would require no 10.50$ TOTAL PREPAY PURCHASE PRICE 720,785.92$ $0.00 720,785.92$ 57,828.23$ 2,053.19$ If a 100% pre-payment were made at contract signing, the following discount would be applied to the final invoice: Each Pierce Arrow XT Triple Combination Pumper as per enclosed proposal for delivery sum of 684,395.00$ CITY OF CHULA VISTA FIRE DEPARTMENT 100% Pre-Payment Option August 3, 2018 (23,501.00)$ 660,894.00$ 2018-09-18 Agenda Packet Page 462 151211-V1 JPMORGAN CHASE BANK, N.A. Mail Code OH1-1085 1111 Polaris Parkway, Suite 4N Columbus, OH 43240-2050 September 5, 2018 CITY OF CHULA VISTA Attn: David Bilby 276 4TH AVE CHULA VISTA, CA 91910 Dear David Bilby, Enclosed you will find the documents necessary to complete your transaction with JPMORGAN CHASE BANK, N.A. (“JPM”). These documents have been completed as of September 5, 2018 and reflect the pricing, terms and conditions of the transaction as of this date. Please be advised that JPM reserves the right to adjust pricing in order to maintain JPM's anticipated economic return as a result of material adverse changes in money markets and capital markets up to the date of final funding. ·Lease Schedule, Schedule A-1, and Payment Schedule - These are specific documents for the current financing and detail the Schedule terms and conditions, describe the equipment and state the repayment terms. Please have your Authorized Signer sign and record his/her title on each form.**Payment Schedule is in Draft Status. The Final Rate and Amort will be sent three business days prior to funding.** ·Prepayment Schedule Addendum, Vehicle Schedule Addendum and Judicial Reference Agreement– These are specific documents for the current financing and details any additional terms and conditions related to the Schedule. Please have your Authorized Signer sign and record his/her title on the forms. ·Resolution and Declaration of Official Intent – Your governing board will need to review and approve the financing and the Authorized Signer(s). Please have the Secretary/Clerk of the board certify that the board has met and approved the financing, and that the titles of the Authorized Signer(s) are correct. ·Certificate of Incumbency – Please have the Secretary/Clerk of the board certify that the titles and specimen signature(s) of the Authorized Signer(s) are correct. ·Opinion of Counsel – Please have your counsel review the documents as soon as possible, and prepare an Opinion of Counsel letter on their letterhead addressed to JPMORGAN CHASE BANK, N.A. A sample of an Opinion of Counsel letter that will satisfy JPMORGAN CHASE BANK, N.A. is enclosed. ·Proceeds Disbursement Authorization - Please complete the missing payment information, sign and date, and provide the signer’s title where indicated. 2018-09-18 Agenda Packet Page 463 151211-V1 ·IRS Form 8038/G/GC – This form is required for IRS reporting of a tax-exempt financing. Please refer to the instructions when completing the information on the form and have an Authorized Signer sign and date at the bottom. ·Insurance Request Letter – Prior to paying the vendor(s), we will need proof of insurance on the equipment, and JPMORGAN CHASE BANK, N.A., its Parent, Affiliates, Successors and Assigns, will need to be listed as both loss payee and additional insured on your policy. Please have an Authorized Signer sign the bottom of the form. Also, please instruct your Insurance Agent to provide a Certificate of Insurance as required on the form. ·Auto Debit Form – For payments to be automatically deducted from an existing checking account, please provide the requisite account information and sign. For funding, please return your lease documents to JPMORGAN CHASE BANK, N.A., Mail Code OH1- 1085, 1111 Polaris Parkway, Suite A3, Columbus, OH 43240. We would like to thank you for choosing JPMORGAN CHASE BANK, N.A. to assist with your equipment financing. We appreciate your business and welcome the opportunity to work with you. PLEASE MAKE A COPY OF THE DOCUMENTS FOR YOUR RECORDS. If you would like to receive a copy of the signature pages post closing, please notify your Documentation Specialist of your request. Your payments will be due annually as set forth in the Lease Schedule. You will be receiving an invoice for the above referenced account at: CITY OF CHULA VISTA Attn: David Bilby 276 4TH AVE CHULA VISTA, CA 91910 If you decide to enroll in the Automated Bill Payment your payments will be debited annually on the due date of your payment, beginning with your first payment. Payments debited will include your normally scheduled payment plus any applicable sales tax and assessments. If you have any questions, concerns, or if I can be of assistance, please feel free to call me. I can be reached at 1-800-678-2601 or (614) 217-8827 from 8:00 a.m. through 5:00 p.m. ET Monday through Friday. I’ll be happy to help you. Sincerely, Britney Posey Documentation Specialist 2018-09-18 Agenda Packet Page 464 151211-V1 Page 1 of 2 LEASE SCHEDULE Dated as of: SEPTEMBER 21, 2018 Lease No.: 1000144548 This Lease Schedule, together with its Payment Schedule, is attached and made a part of the Master Lease-Purchase Agreement described below ("Master Lease") between the Lessee and Lessor named below. All terms and conditions of the Master Lease are incorporated herein by reference. Unless otherwise defined herein, capitalized terms defined in the Master Lease will have the same meaning when used herein. Master Lease-Purchase Agreement dated August 15, 2016. A. EQUIPMENT DESCRIBED: The Equipment includes all of the property described on Schedule A-1 attached hereto and made a part hereof. B. EQUIPMENT LOCATION: See Attached Schedule A-1 C. ACCEPTANCE OF EQUIPMENT: AS BETWEEN LESSEE AND LESSOR, LESSEE AGREES THAT: (a) LESSEE HAS RECEIVED AND INSPECTED ALL EQUIPMENT; (b) ALL EQUIPMENT IS IN GOOD WORKING ORDER AND COMPLIES WITH ALL PURCHASE ORDERS, CONTRACTS AND SPECIFICATIONS; (c) LESSEE ACCEPTS ALL EQUIPMENT FOR PURPOSES OF THE LEASE "AS-IS, WHERE-IS"; AND (d) LESSEE WAIVES ANY RIGHT TO REVOKE SUCH ACCEPTANCE. D. ESSENTIAL USE; CURRENT INTENT OF LESSEE: Lessee represents and agrees that the use of the Equipment is essential to Lessee's proper, efficient and economic functioning or to the services that Lessee provides to its citizens and the Equipment will be used by Lessee only for the purpose of performing its governmental or proprietary functions consistent with the permissible scope of its authority. Lessee currently intends for the full Lease Term: to use the Equipment; to continue this Lease; and to make Rental Payments if funds are appropriated in each fiscal year by its governing body. E. RENTAL PAYMENTS; LEASE TERM: The Rental Payments to be paid by Lessee to Lessor, the interest rate at which the interest portion of the Rental Payments is calculated, the Taxable Rate, the commencement date and the Lease Term of this Lease Schedule are each set forth on the Payment Schedule attached to this Lease Schedule. F. RE-AFFIRMATION OF THE MASTER LEASE: Lessee hereby re-affirms all of its representations, warranties and obligations under the Master Lease (including, without limitation, its obligation to pay all Rental Payments, its disclaimers in Section 7 thereof and its representations in Sections 6.1 and 16 thereof). G. GOVERNMENT REGULATION. ANTI-CORRUPTION. (a) Representations and Warranties Regarding Anti-Corruption Laws and Sanctions. Lessee has implemented and maintains in effect policies and procedures designed to ensure compliance by Lessee and its officers, employees and agents with Anti-Corruption Laws and applicable Sanctions, and Lessee and its officers and employees and to the knowledge of Lessee its agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all material respects. None of (a) Lessee or to the knowledge of Lessee any of its respective officers or employees, or (b) to the knowledge of Lessee, any agent of Lessee that will act in any capacity in connection with or benefit from the credit facility established hereby, is a Sanctioned Person. No advance, letter of credit, use of proceeds or other transaction contemplated by this Lease will violate Anti-Corruption Laws or applicable Sanctions. (b) Compliance with Anti-Corruption Laws and Sanctions. Lessee shall maintain in effect and enforce policies and procedures designed to ensure compliance by Lessee and its officers, employees and agents with Anti-Corruption Laws and applicable Sanctions. (c) Use of Proceeds. Lessee shall not use, or permit any proceeds of the Lease to be used, directly or indirectly, by Lessee or its officers, employees and agents: (1) in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Anti-Corruption Laws; (2) for the purpose of funding, financing or facilitating any activities, business or transaction of or with any Sanctioned Person, or in any Sanctioned Country; or (3) in any manner that would result in the violation of any Sanctions applicable to any party hereto. 2018-09-18 Agenda Packet Page 465 151211-V1 Page 2 of 2 (d) Definitions. For the purposes of this Section G, the following terms shall have the following meanings: "Anti-Corruption Laws" means all laws, rules, and regulations of any jurisdiction applicable to the Lessee or its subsidiaries from time to time concerning or relating to bribery or corruption. "Person" means any individual, corporation, partnership, limited liability company, joint venture, joint stock association, association, bank, business trust, trust, unincorporated organization, any foreign governmental authority, the United States of America, any state of the United States and any political subdivision of any of the foregoing or any other form of entity. "Sanctions" means economic or financial sanctions or trade embargoes imposed, administered or enforced from time to time by the U.S. government, including those administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State. "Sanctioned Country" means, at any time, a country, region or territory which is the subject or target of any Sanctions (as at the time of this Agreement, Crimea, Cuba, Iran, North Korea, Sudan and Syria). "Sanctioned Person" means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any Person controlled by any such Person. H. BANK QUALIFIED: LESSEE CERTIFIES (a) THAT IT HAS DESIGNATED THIS LEASE AS A "QUALIFIED TAX- EXEMPT OBLIGATION" FOR THE PURPOSES OF AND WITHIN THE MEANING OF SECTION 265(b)(3) OF THE CODE, (b) THAT IT HAS NOT DESIGNATED MORE THAN $10,000,000 OF ITS OBLIGATIONS AS QUALIFIED TAX- EXEMPT OBLIGATIONS IN ACCORDANCE WITH SECTION 265(b)(3) OF THE CODE FOR THE CURRENT CALENDAR YEAR AND (c) THAT IT REASONABLY ANTICIPATES THAT THE TOTAL AMOUNT OF SECTION 265 TAX-EXEMPT OBLIGATIONS TO BE ISSUED DURING THE CURRENT CALENDAR YEAR BY LESSEE, OR BY AN ENTITY CONTROLLED BY LESSEE OR BY ANOTHER ENTITY THE PROCEEDS OF WHICH ARE LOANED TO OR ALLOCATED TO LESSEE FOR PURPOSES OF SECTION 265(b) OF THE CODE WILL NOT EXCEED $10,000,000. "Section 265 Tax-Exempt Obligations" are obligations the interest on which is excludable from gross income of the owners thereof under Section 103 of the Code, except for private activity bonds other than qualified 501(c)(3) bonds, both as defined in Section 141 of the Code. Equipment/Escrow Acceptance Date: __________________, 20___ CITY OF CHULA VISTA JPMORGAN CHASE BANK, N.A. (Lessee) (Lessor) By: By: Title: Title: Authorized Officer 2018-09-18 Agenda Packet Page 466 151211-V1 SCHEDULE A-1 (Equipment List 09 12 2018) 1 of 1 Expected Equipment Purchase Price $717,481.45 Net Amount Financed $717,481.45 Equipment Location: 276 4th Ave Chula Vista, CA 91910 Equipment Description: Purchase of new Fire Truck using (2) Vehicles as the Additional Collateral Pierce Fire Truck VIN: Additional Collateral: Equipment Vin # Description Year Purchased Engine 51 4P1BAAGF1FA015655 Pierce Engine: Type 1 Eng; Custom Cab; 1500 GPM Pump; 500 Gallon Tank 2015 Engine 52 4P1CD01H64A004468 Pierce Engine: Type 1 Eng; Custom Cab; 1500 GPM Pump; 500 Gallon Tank 2004 Engine 54 4PICT02S44A003882 Pierce Engine: Type 1 Eng; Custom Cab; 1500 GPM Pump; 500 Gallon Tank 2004 Engine 58 4P1CD01HX4A004490 Pierce Engine: Type 1 Eng; Custom Cab; 1500 GPM Pump; 500 Gallon Tank 2004 Engine 59 4P1CD01H34A004489 Pierce Engine: Type 1 Eng; Custom Cab; 1500 GPM Pump; 500 Gallon Tank 2004 TOGETHER WITH ALL ATTACHMENTS, ADDITIONS, ACCESSIONS, PARTS, REPAIRS, IMPROVEMENTS, REPLACEMENTS AND SUBSTITUTIONS THERETO. This Schedule A-1 is attached to the Lease Schedule 1000144548 or a Receipt Certificate/Payment Request relating to the Lease Schedule. CITY OF CHULA VISTA JPMORGAN CHASE BANK, N.A (Lessee) (Lessor) By: By: Title: Title:Authorized Officer 2018-09-18 Agenda Packet Page 467 151211-V1 Payment Schedule This Payment Schedule is attached and made a part of the Lease Schedule identified below which is part of the Master Lease-Purchase Agreement identified therein, all of which are between the Lessee and Lessor named below. Lease Schedule No. 1000144548 Lease Schedule Dated: September 21, 2018 Accrual Date September 21, 2018 Amount Financed $717,481.45 Interest Rate TBD% per annum Taxable Rate TBD% per annum ***FINAL RATE AND AMORT WILL BE SET THREE BUSINESS DAYS PRIOR TO FUNDING.** Rent Rent Rent Interest Principal Termination Number Date Payment Portion Portion Value CITY OF CHULA VISTA JPMORGAN CHASE BANK, N.A. (Lessee) (Lessor) By: By: Title: Title: Authorized Officer 2018-09-18 Agenda Packet Page 468 160304-V2 PREPAYMENT SCHEDULE ADDENDUM (Lockout Period) Dated as of: SEPTEMBER 21, 2018 Lease Schedule No.: 1000144548 Lessee: CITY OF CHULA VISTA Reference is made to the above Lease Schedule ("Schedule") and to the Master Lease-Purchase Agreement ("Master Lease") identified in the Schedule, which are by and between JPMORGAN CHASE BANK, N.A. ("Lessor") and the above lessee ("Lessee"). As used herein: "Lease" shall mean the Schedule and the Master Lease, but only to the extent that the Master Lease relates to the Schedule. This Schedule Addendum amends and supplements the terms and conditions of the Lease. Unless otherwise defined herein, capitalized terms defined in the Lease shall have the same meaning when used herein. Solely for purposes of the Schedule, Lessor and Lessee agree as follows: 1. Notwithstanding anything to the contrary herein or the Lease, Lessee and Lessor agree that Lessee shall not exercise its prepayment or early purchase rights under the Lease (including, without limitation, Section 15 of the Master Lease as it relates to the Schedule) or this Addendum prior to the end of the Lock-Out Period specified below. Lock-Out Period: the first 12 months of the Lease Term of the Schedule 2. Notwithstanding anything to the contrary in the Lease (including, without limitation, Section 15 of the Master Lease as it relates to the Schedule), Lessee and Lessor agree that so long as no Event of Default has occurred and continues under the Lease and so long as Lessee gives Lessor at least 30 days prior written notice (the "Notice Period") and so long as the above Lock-Out Period has expired, Lessee may elect to prepay its obligations under the Schedule by paying to Lessor on the Rent Payment due date (a "Prepayment Date") following the Notice Period the total of the following (the "Prepayment Amount"): (a) all accrued Rent Payments, interest, taxes, late charges and other amounts then due and payable under the Lease; plus (b) the remaining principal balance payable by Lessee under the Schedule as of said Prepayment Date. 3. The parties acknowledge that the Termination Value column of the Payment Schedule to the Schedule is included solely for purposes of the calculations required by Section 13.3 of the Master Lease (casualty loss of Equipment), Section 14.1 of the Master Lease (required amount of casualty loss insurance) and Subsection 20(c) of the Master Lease (post-default remedies of Lessor) and said Termination Value column does not negate the restrictions on purchase options or voluntary prepayment in paragraphs 1 and 2 of this Addendum. 4. The prepayment or early purchase option rights granted herein shall control in the event of any conflict between the provisions of this Addendum and the Master Lease as it relates to the Schedule. Except as expressly amended or supplemented by this Addendum and other instruments signed by Lessor and Lessee, the Lease remains unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Addendum as of the date first written above. CITY OF CHULA VISTA JPMORGAN CHASE BANK, N.A. (Lessee) (Lessor) By: By: Title: Title: Authorized Officer 2018-09-18 Agenda Packet Page 469 151211-V1 VEHICLE SCHEDULE ADDENDUM Dated As of: SEPTEMBER 21, 2018 Lease Schedule No: 1000144548 Lessee: CITY OF CHULA VISTA Reference is made to the above Lease Schedule ("Schedule") to the Master Lease-Purchase Agreement identified in the Schedule ("Master Lease") by and between JPMORGAN CHASE BANK, N.A. ("Lessor") and the above lessee ("Lessee"). This Addendum amends and modifies the terms and conditions of the Schedule and is hereby made a part of the Schedule. Unless otherwise defined herein, capitalized terms defined in the Master Lease shall have the same meaning when used herein. NOW, THEREFORE, as part of the valuable consideration to induce the execution of the Schedule, Lessor and Lessee hereby agree to amend the Schedule as follows: 1. In the event that any unit of Equipment covered by the Schedule is a vehicle or trailer under applicable State law, then the following provisions shall also apply to the Schedule: (a) each manufacturer's statement of origin and certificate of title shall state that Lessor has the first and sole lien on or security interest in such unit of Equipment; (b) the public liability insurance required by the terms of clauses (b) of Section 14.1 of the Master Lease shall be in an amount not less than $1,000,000.00 combined single limit per unit per occurrence. Physical damage should not be less than the replacement cost coverage for the equipment identified on the Schedule A-1; (c) Lessee shall furnish and permit only duly licensed, trained, safe and qualified drivers to operate any such unit of Equipment, and such drivers shall be agents of Lessee and shall not be agents of Lessor; and (d) Lessee shall cause each such unit of Equipment to be duly registered and licensed as required by applicable State law with Lessor noted as lienholder, listed at address below and Lessee as owner. Lessor’s Address: JPMORGAN CHASE BANK, N.A. 1111 Polaris Parkway, Suite 4N Columbus, Ohio 43240-2050 2. Except as expressly amended by this Addendum and other modifications signed by Lessor, the Schedule remains unchanged and in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Addendum as of the date first referenced above. CITY OF CHULA VISTA JPMORGAN CHASE BANK, N.A. (Lessee) (Lessor) By: By: Title: Title: Authorized Officer 2018-09-18 Agenda Packet Page 470 160511-V6 Page 1 of 2 JUDICIAL REFERENCE AGREEMENT Dated: SEPTEMBER 21, 2018 Master Lease Purchase Agreement dated: AUGUST 15, 2016 Lessee: CITY OF CHULA VISTA This Judicial Reference Agreement (this "Agreement") is between the Lessee identified above (the "Customer") and JPMorgan Chase Bank, N.A. (the "Bank") and is executed in connection with the Master Lease Purchase Agreement identified above (the "Financing Agreement"). The parties agree as follows: 1. The term "Financing Documents" means the Financing Agreement and all other agreements, instruments and documents related to the Financing Agreement and any amendment to or replacement or substitution for any of the above. Any other defined terms used herein but not further defined have the meaning set forth in the Financing Documents. 2. THE WAIVERS OF JURY TRIAL CONTAINED IN THE FINANCING DOCUMENTS ARE MATERIAL INDUCEMENTS TO THE BANK TO PROVIDE THE FINANCING DESCRIBED THEREIN. IN THE EVENT ANY LEGAL PROCEEDING IS FILED IN A COURT OF THE STATE OF CALIFORNIA (THE "COURT") BY OR AGAINST ANY PARTY HERETO IN CONNECTION WITH ANY CONTROVERSY, DISPUTE OR CLAIM DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE FINANCING DOCUMENTS, THE TRANSACTIONS CONTEMPLATED THEREBY, OR THIS AGREEMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY) (EACH, A "CLAIM") AND A WAIVER SET FORTH IN THE FINANCING DOCUMENTS IS NOT ENFORCEABLE IN SUCH ACTION OR PROCEEDING, THE PARTIES AGREE AS FOLLOWS: 2.1 WITH THE EXCEPTION OF THE MATTERS SPECIFIED IN PARAGRAPH 2.2 BELOW, ANY CLAIM WILL BE DETERMINED BY A GENERAL REFERENCE PROCEEDING IN ACCORDANCE WITH THE PROVISIONS OF CALIFORNIA CODE OF CIVIL PROCEDURE SECTIONS 638 THROUGH 645.2, INCLUDING ANY REVISION OR REPLACEMENT OF SUCH STATUTES OR RULES HEREAFTER ENACTED. THE PARTIES INTEND THIS GENERAL REFERENCE AGREEMENT TO BE SPECIFICALLY ENFORCEABLE IN ACCORDANCE WITH CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 638, INCLUDING ANY REVISION OR REPLACEMENT OF SUCH STATUTE OR RULE HEREAFTER ENACTED. EXCEPT AS OTHERWISE PROVIDED IN THIS THE FINANCING DOCUMENTS, VENUE FOR THE REFERENCE PROCEEDING WILL BE IN THE STATE OR FEDERAL COURT IN THE COUNTY OR DISTRICT WHERE VENUE IS OTHERWISE APPROPRIATE UNDER APPLICABLE LAW. 2.2 THE FOLLOWING MATTERS SHALL NOT BE SUBJECT TO A GENERAL REFERENCE PROCEEDING: (A) NON-JUDICIAL FORECLOSURE OF ANY SECURITY INTERESTS IN REAL OR PERSONAL PROPERTY; (B) EXERCISE OF SELF-HELP REMEDIES (INCLUDING, WITHOUT LIMITATION, SET-OFF); (C) APPOINTMENT OF A RECEIVER; AND (D) TEMPORARY, PROVISIONAL OR ANCILLARY REMEDIES (INCLUDING, WITHOUT LIMITATION, WRITS OF ATTACHMENT, WRITS OF POSSESSION, TEMPORARY RESTRAINING ORDERS OR PRELIMINARY INJUNCTIONS). THIS AGREEMENT DOES NOT LIMIT THE RIGHT OF A PARTY HERETO TO EXERCISE OR OPPOSE ANY OF THE RIGHTS AND REMEDIES DESCRIBED IN CLAUSES (A) - (D) AND ANY SUCH EXERCISE OR OPPOSITION DOES NOT WAIVE THE RIGHT OF THE PARTIES TO A REFERENCE PROCEEDING PURSUANT TO THIS AGREEMENT. 2.3 UPON THE WRITTEN REQUEST OF ANY PARTY HERETO, THE PARTIES SHALL SELECT A SINGLE REFEREE, WHO SHALL BE A RETIRED JUDGE OR JUSTICE. IF THE PARTIES DO NOT AGREE UPON A REFEREE WITHIN TEN (10) DAYS OF SUCH WRITTEN REQUEST, THEN, ANY PARTY HERETO MAY REQUEST THE COURT TO APPOINT A REFEREE PURSUANT TO CALIFORNIA CODE OF CIVIL PROCEDURE SECTION 640(B), INCLUDING ANY REVISION OR REPLACEMENT OF SUCH STATUTE OR RULE HEREAFTER ENACTED. 2.4 ALL PROCEEDINGS AND HEARINGS CONDUCTED BEFORE THE REFEREE, EXCEPT FOR TRIAL, SHALL BE CONDUCTED WITHOUT A COURT REPORTER, EXCEPT WHEN ANY PARTY HERETO SO REQUESTS, A COURT REPORTER WILL BE USED AND THE REFEREE WILL BE PROVIDED A COURTESY COPY OF THE TRANSCRIPT. THE PARTY MAKING SUCH REQUEST SHALL HAVE THE OBLIGATION TO 2018-09-18 Agenda Packet Page 471 160511-V6 Page 2 of 2 ARRANGE FOR AND PAY COSTS OF THE COURT REPORTER, PROVIDED THAT SUCH COSTS, ALONG WITH THE REFEREE'S FEES, SHALL ULTIMATELY BE BORNE BY THE PARTY WHO DOES NOT PREVAIL, AS DETERMINED BY THE REFEREE. 2.5 THE REFEREE MAY REQUIRE ONE OR MORE PREHEARING CONFERENCES. THE PARTIES SHALL BE ENTITLED TO DISCOVERY, AND THE REFEREE SHALL OVERSEE DISCOVERY IN ACCORDANCE WITH THE RULES OF DISCOVERY, AND MAY ENFORCE ALL DISCOVERY ORDERS IN THE SAME MANNER AS ANY TRIAL COURT JUDGE IN PROCEEDINGS AT LAW IN THE STATE OF CALIFORNIA. THE REFEREE SHALL APPLY THE RULES OF EVIDENCE APPLICABLE TO PROCEEDINGS AT LAW IN THE STATE OF CALIFORNIA AND SHALL DETERMINE ALL ISSUES IN ACCORDANCE WITH APPLICABLE STATE AND FEDERAL LAW. THE REFEREE SHALL BE EMPOWERED TO ENTER EQUITABLE AS WELL AS LEGAL RELIEF AND RULE ON ANY MOTION WHICH WOULD BE AUTHORIZED IN A TRIAL, INCLUDING, WITHOUT LIMITATION, MOTIONS FOR DEFAULT JUDGMENT OR SUMMARY JUDGMENT. THE REFEREE SHALL REPORT THE REFEREE'S DECISION, WHICH REPORT SHALL ALSO INCLUDE FINDINGS OF FACT AND CONCLUSIONS OF LAW. 2.6 THE PARTIES RECOGNIZE AND AGREE THAT ALL CLAIMS RESOLVED IN A GENERAL REFERENCE PROCEEDING PURSUANT HERETO WILL BE DECIDED BY A REFEREE AND NOT BY A JURY. Except as expressly amended or supplemented by this Agreement and other instruments signed by the Parties, the Financing Documents remain unchanged and in full force and effect. This Agreement may be executed in any number of counterparts, which together shall constitute a single instrument. IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the date first written above CITY OF CHULA VISTA JPMORGAN CHASE BANK, N.A. (Customer) (Bank) By: By: Title: Title: Authorized Officer 2018-09-18 Agenda Packet Page 472 160414-V2 Page 1 of 2 RESOLUTION AND DECLARATION OF OFFICIAL INTENT Lessee: CITY OF CHULA VISTA Principal Amount Expected To Be Financed: $717,481.45 WHEREAS, the above Lessee is a political subdivision of the State in which Lessee is located (the "State") and is duly organized and existing pursuant to the constitution and laws of the State. WHEREAS, pursuant to applicable law, the governing body of the Lessee ("Governing Body") is authorized to acquire, dispose of and encumber real and personal property, including, without limitation, rights and interests in property, leases and easements necessary to the functions or operations of the Lessee. WHEREAS, the Governing Body hereby finds and determines that the execution of one or more lease-purchase agreements ("Equipment Leases") in the principal amount not exceeding the amount stated above ("Principal Amount") for the purpose of acquiring the property generally described below ("Property") and to be described more specifically in the Equipment Leases is appropriate and necessary to the functions and operations of the Lessee. Brief Description Of Property: See Attached Schedule A-1 WHEREAS, JPMorgan Chase Bank, N.A. ("Lessor") is expected to act as the lessor under the Equipment Leases. WHEREAS, the Lessee may pay certain capital expenditures in connection with the Property prior to its receipt of proceeds of the Equipment Leases ("Lease Purchase Proceeds") for such expenditures and such expenditures are not expected to exceed the Principal Amount. WHEREAS, the U.S. Treasury Department regulations do not allow the proceeds of a tax-exempt borrowing to be spent on working capital and the Lessee shall hereby declare its official intent to be reimbursed for any capital expenditures for Property from the Lease Purchase Proceeds. NOW, THEREFORE, Be It Resolved by the Governing Body of the Lessee: SECTION 1. Either one of the (insert title) _______________________ OR the (insert title) _____________________________ (each an "Authorized Representative") acting on behalf of the Lessee is hereby authorized to negotiate, enter into, execute, and deliver one or more Equipment Leases in substantially the form set forth in the document presently before the Governing Body, which document is available for public inspection at the office of the Lessee. Each Authorized Representative acting on behalf of the Lessee is hereby authorized to negotiate, enter into, execute, and deliver such other documents relating to the Equipment Lease (including, but not limited to, escrow agreements) as the Authorized Representative deems necessary and appropriate. All other related contracts and agreements necessary and incidental to the Equipment Leases are hereby authorized. SECTION 2. By a written instrument signed by any Authorized Representative, said Authorized Representative may designate specifically identified officers or employees of the Lessee to execute and deliver agreements and documents relating to the Equipment Leases on behalf of the Lessee. SECTION 3. The aggregate original principal amount of the Equipment Leases shall not exceed the Principal Amount and shall bear interest as set forth in the Equipment Leases and the Equipment Leases shall contain such options to purchase by the Lessee as set forth therein. SECTION 4. The Lessee's obligations under the Equipment Leases shall be subject to annual appropriation or renewal by the Governing Body as set forth in each Equipment Lease and the Lessee’s obligations under the Equipment Leases shall not constitute a general obligations of the Lessee or indebtedness under the Constitution or laws of the State. SECTION 5. The Governing Body of Lessee anticipates that the Lessee may pay certain capital expenditures in connection with the Property prior to the receipt of the Lease Purchase Proceeds for the Property. The Governing Body of Lessee hereby declares the Lessee’s official intent to use the Lease Purchase Proceeds to reimburse itself for Property expenditures. This section of the Resolution is adopted by the Governing Body of Lessee for the purpose of establishing compliance with the requirements of Section 1.150-2 of Treasury Regulations. This section of the Resolution does not bind the Lessee to make any expenditure, incur any indebtedness, or proceed with the purchase of the Property. 2018-09-18 Agenda Packet Page 473 160414-V2 Page 2 of 2 SECTION 6. As to each Equipment Lease, Lessee hereby designates each Equipment Lease as a "qualified tax-exempt obligation" for the purposes of and within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended ("Code") and Lessee reasonably anticipates that the total amount of Section 265 Tax-Exempt Obligations to be issued during the current calendar year by Lessee, or by an entity controlled by Lessee or by another entity the proceeds of which are loaned to or allocated to Lessee for purposes of Section 265(b) of the Code will not exceed $10,000,000. "Section 265 Tax-Exempt Obligations" are obligations the interest on which is excludable from gross income of the owners thereof under Section 103 of the Code, except for private activity bonds other than qualified 501(c)(3) bonds, both as defined in Section 141 of the Code. SECTION 7. This Resolution shall take effect immediately upon its adoption and approval. ADOPTED AND APPROVED on this __________________________, 20___. The undersigned Secretary/Clerk of the above-named Lessee hereby certifies and attests that the undersigned has access to the official records of the Governing Body of the Lessee, that the foregoing resolutions were duly adopted by said Governing Body of the Lessee at a meeting of said Governing Body and that such resolutions have not been amended or altered and are in full force and effect on the date stated below. Signature of Secretary/Clerk of Lessee Print Name: Official Title: Date: 2018-09-18 Agenda Packet Page 474 151211-V1 CERTIFICATE OF INCUMBENCY Dated: SEPTEMBER 21, 2018 Lease Schedule No: 1000144548 Lessee: CITY OF CHULA VISTA I, the undersigned Secretary/Clerk identified below, do hereby certify that I am the duly elected or appointed and acting Secretary/Clerk of the above Lessee (the "Lessee"), a political subdivision duly organized and existing under the laws of the State where Lessee is located, that I have the title stated below, and that, as of the date hereof, the individuals named below are the duly elected or appointed officers of the Lessee holding the offices set forth opposite their respective names. [NOTE: Use same titles as Authorized Representatives stated in Resolutions.] Name Title Signature Name Title Signature IN WITNESS WHEREOF, I have duly executed this certificate and affixed the seal of such Lessee as of the date set forth below. Signature of Secretary/Clerk of Lessee Print Name: Official Title: Date: NOTE: In case the Secretary/Clerk is also the authorized representative that executes a Lease-Purchase Agreement / documents by the above incumbency, this certificate must also be signed by a second officer. Print Name: Signature: Title: 2018-09-18 Agenda Packet Page 475 151211-V1 Page 1 of 1 PROCEEDS DISBURSEMENT AUTHORIZATION JPMORGAN CHASE BANK, N.A. 1111 Polaris Parkway, Suite A3 (OH1-1085) Columbus, OH 43240 Date: SEPTEMBER 21, 2018 Re: Disbursements Of Proceeds Under The MASTER LEASE PURCHASE AGREEMENT Referred To Below Reference is made to that certain Master Lease Purchase Agreement dated August 15, 2016 between CITY OF CHULA VISTA, ("Lessee") and JPMORGAN CHASE BANK, N.A. (the "Lessor") with Lease Schedule 1000144548 dated September 21, 2018. I hereby instruct you and authorize you to disburse $717,481.45 to the account number(s) as specified below: Payee #1 Name of Bank: BANK OF AMERICA ABA No.: 026009593 Account Number: 86661-11009 Account Name: Pierce Manufacturing Inc. Amount: $717,481.45 By signing below, Lessee authorizes Lessor to issue checks or direct fund transfers to the payees, in the amounts, and per the instructions (if applicable) set forth above. Lessee also acknowledges that it may be responsible for paying other fees directly to third parties, such as Lessor's counsel, and making other disbursements in connection with the lease transaction per the terms of the lease documents. Lessor may rely and act on the instructions set forth herein and shall not be responsible for the use or application of the funds, and Lessee shall indemnify, defend and hold harmless Lessor from and against any and all losses, costs, expenses, fees, claims, damages, liabilities, and causes of action in any way relating to or arising from acting in accordance therewith. In the event of any conflict with any other instruction set forth herein, the ABA # and Account # shall control. IN WITNESS WHEREOF, the Lessee has caused this Proceeds Disbursement Authorization to be executed as of the day and year first above written. CITY OF CHULA VISTA (Lessee) By: Title: 2018-09-18 Agenda Packet Page 476 151211-V1 LEASE-PURCHASE (TITLE VEHICLE) INSURANCE REQUEST LETTER PUBLIC SECTOR September 5, 2018 CSAC EXCESS INS AUTHORITY C/O ALLIANT INS SERVICES INC NEWPORT BEACH, CA 926586450 Phone #: 949-756-0271 Email: _________________ Dear Agent: JPMORGAN CHASE BANK, N.A. (the "Bank") requires proof of acceptable insurance coverage before the transaction can close. The requirements identified below must be provided to us on a Certificate of Insurance and stay in full effect throughout the term of the transaction. 1. The certificate of insurance must be issued directly to JPMorgan Chase Bank, N.A. and shall be issued by a company having an A.M. Best Rating of at least A- with a Financial Size Category of at least VIII. 2. The certificate of insurance must be executed. 3. The insurance must be primary and without right of contribution and any insurance maintained by the Bank or any other additional insured or loss payee will be in excess and non-contributory. 4. Policies must include a Waiver of Subrogation in favor of "JPMorgan Chase Bank, N.A., its parent and affiliates, successors or assigns". 5. Policies must include a Severability of Interest and Cross-Liability clause. 6. Policies must include written Notice of Cancellation to the Certificate Holder/Additional Insured pursuant to the terms of the policy. Such notice must be directed by certified mail to: JPMorgan Chase Bank, N.A., 1111 Polaris Parkway, Suite A3, Columbus, Ohio 43240, Attn: Insurance Dept. 7. PHYSICAL DAMAGE a. Full Coverage Physical Damage for the equipment identified on the attached Schedule A-1, which is estimated to be $717,481.45. b. "JPMorgan Chase Bank, N.A., its parent and affiliates, successors or assigns" shall be named as Loss Payee. 8. LIABILITY a. Auto liability coverage must be provided in the amount of $1,000,000.00. b. "JPMorgan Chase Bank, N.A., its parent and affiliates, successors or assigns" shall be named as Additional Insured. Please immediately send proof of the above insurance requirements VIA EMAIL TO: Britney.a.posey@jpmorgan.com Sincerely, CITY OF CHULA VISTA By: 2018-09-18 Agenda Packet Page 477 170113-V2 Page 1 of 2 SSIIGGNN UUPP .. .. .. .. FFOORR AAUUTTOOMMAATTEEDD BBIILLLL PPAAYYMMEENNTT Please complete ALL Sections and return this form: I authorize JPMORGAN CHASE BANK, N.A. to make withdrawals from the account listed below. I understand that I control my withdrawals for payments on leases and loans. If at any time I decide to discontinue this payment service, I will notify the biller. I also understand that any future leases and loans will automatically be set up with auto debit withdrawals unless JPMorgan Chase Bank, N.A. elects to the contrary. All assessments and other fees payable under the leases and loans will be withdrawn with rental/installment payments unless otherwise instructed. (PLEASE PRINT) Customer Information: Financial Institution: Name: CITY OF CHULA VISTA Name: Address: 276 4TH AVE Address: City: CHULA VISTA City: State: CA Zip: 91910 State: Zip: Account Type (check one) Checking Savings Routing /ABA Number __________________________ Account Number __________________________ (Please enclose a voided check) Biller Information: Your JPMorgan Chase Bank, N.A. Account Number(s) as Shown on Agreement or Invoice. (A sign up form is required for each unique financial institution account and routing/ABA number.) 1000144548 This includes any existing and new accounts. Notice to Customer - This agreement authorizes the periodic transfer of funds from your account at the financial institution listed on this sign up form by electronic means. Your rights and liabilities under this agreement are governed in part by federal laws and regulations dealing with electronic fund transfers. You should consult your agreement with the financial institution, which holds your account for a more complete disclosure of your legal rights. Withdrawal amount may change to reflect the payment schedule defined in the agreement. This authorization and change of payment method will not modify or amend the agreement, including any rights or remedies of JPMorgan Chase Bank, N.A. The biller reserves the right to discontinue this payment service at biller’s discretion and upon notice to the customer. Authorized Signature Date Telephone No. Do Not Enclose Payment! Mail to: JPMorgan Chase Bank, N.A. 1111 Polaris Parkway, Suite 4N Columbus, OH 43240 Phone: 1-800-678-2601 Option #2 Or Email: JPMEF.Portfolio.Service@JPMORGAN.com 2018-09-18 Agenda Packet Page 478 170113-V2 Page 2 of 2 THINGS YOU NEED TO KNOW ABOUT AUTOMATED BILL PAYMENT Q. How do I sign up? A. Complete all sections of this form, sign, enclose a voided check and mail or email to JPMEF.Portfolio.Service@JPMORGAN.com. Q. Once I have enrolled in the automated bill payment will JPMorgan Chase Bank, N.A. give me notice of when my automated bill payment will begin? A. Yes. You will be notified by mail in advance of your actual start date. Typically, it will take 4 to 6 weeks before you will begin. Please continue to pay until notification is received. Q. When will the payment amounts be taken out of my checking or savings account? A. The periodic payment will be deducted from your checking or savings account automatically by JPMorgan Chase Bank, N.A. on the payment due date. If the payment due date falls on a weekend or holiday the payment will be deducted on the next business day. Q. What if I have a question about my bill payment or want to stop the automated payment plan? A. Simply call us at 1-800-678-2601 Option #2. Q. How can I be sure my bill has been paid? A. Your payment will be clearly itemized on your bank's monthly account statement. Q. Is there a charge for this service? A. No. You are a valued customer and we offer this service free of charge. Q. If I've already signed up, must I complete the form again? A. Only if you are adding or changing the financial institution account and/or routing/ABA numbers. Q. How will I be billed for assessments? A. Assessments such as personal property tax and fees will be deducted with your rental payment unless otherwise instructed by you in writing. 2018-09-18 Agenda Packet Page 479 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING CONSTRUCTION OF THE MILLENIA (EASTERN URBAN CENTER) FIRE STATION NO. 10 WHEREAS, the 2011 Growth Management Oversight Commission (GMOC) Recommendations and Implementing Actions Report recommended the creation of a new approval process requiring Public Facilities Development Impact Fee (PFDIF) capital projects be brought forward to Council for authorization to proceed prior to significant expenditure of project funds; and WHEREAS, the Recommendations and Implementing Actions Report further provided that at the time of Council consideration of authorization to proceed, a list of other PFDIF eligible projects should be presented to the City Council, along with staff’s justification for moving forward with the proposed project; and WHEREAS, the City Council adopted Resolution 2011-059, directing the City Manager to undertake actions necessary to implement report recommendations as presented in the 2011 Recommendations and Implementing Actions Report; and WHEREAS, the prioritization of PFDIF capital projects has not changed since 2011 and was most recently reported to the City Council in conjunction with the 2017 GMOC Report; and WHEREAS, in the 2017 GMOC Report, the prioritization of planned PFDIF capital projects was as follows: (1) the Rancho del Rey Library; (2) the Millenia (Eastern Urban Center) Fire Station; (3/4) the Otay Ranch Village 4 Aquatics Center and Recreation Facility; and (5) the Millenia (Eastern Urban Center) Library; and WHEREAS, in recognition of the City’s continued prioritization of public safety services, and the need to provide additional fire services in the City’s eastern territories, staff recommends the construction of the Millenia Fire Station in advance of the Rancho del Rey Library; and WHEREAS, if authorization to proceed with construction of the Millenia (Eastern Urban Center) Fire Station is approved, the new prioritization for the planned PFDIF capital projects would be as follows: (1) the Millenia (Eastern Urban Center) Fire Station; (2) the Rancho del Rey Library; (3/4) the Otay Ranch Village 4 Aquatics Center and Recreation Facility; and (5) the Millenia (Eastern Urban Center) Library; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it authorizes the construction of the Millenia (Eastern Urban Center) Fire Station No. 10. 2018-09-18 Agenda Packet Page 480 Presented by Approved as to form by Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney 2018-09-18 Agenda Packet Page 481 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A SOLE SOURCE PURCHASE WITH SOUTH COAST FIRE EQUIPMENT AND A 10-YEAR LEASE PURCHASE AGREEMENT WITH JPMORGAN CHASE BANK, N.A. FOR THE ACQUISITION OF ONE (1) PIERCE ARROW XT TRIPLE COMBINATION PUMPER/FIRE ENGINE AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE THE FINAL PURCHASE AND LEASE AGREEMENT WHEREAS, Chula Vista Municipal Code Section 2.56.070.B.4 provides a sole source purchase exception to the City’s formal competitive bidding requirements for equipment purchases exceeding $100,000 where such commodity is available from only one known source as the result of compatibility requirements and/or unique market conditions; and WHEREAS, the Chula Vista Fire Department delivers Fire, Rescue and Emergency Medical Services to Chula Vista residents, visitors, and employees every day; and WHEREAS, emergency response services are provided with several different types of fire apparatus including triple combination pumper/fire engines, aerial ladder trucks, a heavy rescue, a brush engine and battalion chief vehicles; and WHEREAS, the Fire Department will be opening Millenia Fire Station/Station 10, providing Fire, Rescue and Emergency Medical Services to those in that community; and WHEREAS, the Fire Department will continue to meet the NFPA standards and increase the reliability of our current fleet with less downtime for mechanical issues and provide a safer response vehicle than our existing fleet; and WHEREAS, the Fire Department is recommending to enter into a sole source purchase with South Coast Fire Equipment for the acquisition of one (1) Pierce Arrow XT Triple Combination Pumper/Fire Engine which will be used as the front-line apparatus at the new Millenia Fire Station; and WHEREAS, the Fire Department is recommending to enter into a 10-year lease purchase agreement with JPMorgan Chase Bank, N.A. for the acquisition of one (1) Pierce Arrow XT Triple Combination Pumper/Fire Engine in order to minimize the immediate fiscal impact; and WHEREAS, the total cost to purchase one Pierce Arrow XT Triple Combination Pumper/Fire Engine is $720,785.92, which will result in estimated annual payments in the amount of $88,000. The total estimated amount paid for this fire apparatus including interest will be $880,000 through the 10-year lease purchase option; and 2018-09-18 Agenda Packet Page 482 WHEREAS, the City Council hereby finds and determines that the execution of one or more lease-purchase agreements in the principal amount not exceeding $720,785.92 for the purpose of acquiring the property generally described as one (1) Pierce Arrow XT Triple Combination Pumper/Fire Engine and to be described more specifically in the Equipment Leases is appropriate and necessary to the functions and operations of the City. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chula Vista that it approves a sole source purchase with South Coast Fire Equipment and a 10-year lease purchase agreement with JPMorgan Chase Bank, N.A. for the acquisition of one (1) Pierce Arrow XT Triple Combination Pumper/Fire Engine, in the form presented, with such modifications as may be required or approved by the City Attorney, a copy of which shall be kept on file in the office of the City Clerk, and authorizes the City Manager or designee to execute the lease- purchase agreement and all implementing documentation and agreements, in a form approved by the City Attorney, that are necessary and incidental to the purchase. Presented by Approved as to form by Jim Geering Glen R. Googins Fire Chief City Attorney 2018-09-18 Agenda Packet Page 483 P a g e | 1 September 18, 2018 File ID: 18-0390 TITLE CONSIDERATION OF REAPPOINTMENTS TO THE FOLLOWING COMMISSIONS: A.REAPPOINTMENT TO FIRST TERM - Jon Milburn, Planning Commission B. REAPPOINTMENTS TO SECOND TERMS - Maria Garcia-Lopez, Parks and Recreation Commission - Gabe Gutierrez, Planning Commission - T. Michael Lengyel, Growth Management Oversight Commission RECOMMENDED ACTION Council make the reappointments as appropriate. DISCUSSION On August 7, 2018, Council adopted revisions to Chula Vista Municipal Code (CVMC)2.25, regarding rules and processes related to the City’s boards and commissions. Among other changes, CVMC 2.25.055, related to the board and commission reappointment process, was revised to remove the requirement for members who served more than one year on specified commissions to be interviewed prior to reappointment. Under the revised section, Council may make the appointments at this time, or, if a majority of the Council so desires, it may elect to interview one or more of theeligible members prior to voting on reappointment. Pursuant to CVMC 2.25.055 (C), each member of a board or commission shall be reappointed by at least three affirmative votes of the City Council. When an incumbent is not reappointed, the seat shall be filled using the applicable appointment process. Members whose terms expired on June 30, 2018 and who are being considered for reappointment at this time are listed below. These members’ attendance and training records are included as Attachment 1. Reappointment to a first term: - Jon Milburn, Planning Commission Reappointments to second terms: - Maria Garcia-Lopez, Parks and Recreation Commission 2018-09-18 Agenda Packet Page 484 P a g e | 2 - Gabe Gutierrez, Planning Commission - T. Michael Lengyel, Growth Management Oversight Commission ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no environmental review is required. DECISION-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any Councilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. LINK TO STRATEGIC GOALS The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The boards and commissions program supports the Connected Community goal. Members of the City’s boards and commissions play a vital role by participating in the City’s processes and helping influence public policy with their diverse viewpoints. CURRENT-YEAR FISCAL IMPACT There is no impact on the general fund. ONGOING FISCAL IMPACT There is no ongoing fiscal impact. ATTACHMENTS 1. Training and Attendance Report Staff Contact: Leah Larrarte 2018-09-18 Agenda Packet Page 485 Term Interested In Reappointment Eligible for Reappointment Board & Commission Name Appointment Criteria Appointment Date Ethics Training (in compliance*)17/18 16/17 15/16 14/15 13/14 1 Y Y Growth Management Oversight Commission Lengyel, T. Michael Development Representative 9/11/14 Y 4/11 0/11 1/9 3/14 - 1 Y Y Parks and Recreation Commission Garcia-Lopez, Maria 7/17/14 N 1/6 0/4 0/4 -- 1 Y Y Planning Commission Gutierrez, Gabe At-Large 8/14/14 Y 2/11 2/10 1/10 1/8 - 0 Y Y Planning Commission Milburn, Jon Design Representative 6/28/17 N 0/11 ---- Attendance (Meetings Missed/Meetings Held**) Commissioner Attendance & Training Records For Terms Expiring in 2018 * A member is considered compliant with the ethics training requirement when: A) He/She has completed ethics training within the past two years and provided a certificate of completion to the City Clerk's office; OR B) He/She has not yet completed ethics training and has served less than one year (all members have one year to complete the initial ethics training) ** Attendance is reported in the following format: Number of Meetings Missed (excused or unexcused absences) / Number of Meetings Held (meetings held prior to an individual being appointed are not included) 2018-09-18 Agenda Packet Page 486