HomeMy WebLinkAboutAgenda Packet 2018_09_25September 25, 2018City Council Agenda
WRITTEN COMMUNICATIONS
A. Letter of resignation from Mark Valen, Wildlife Advisory
Group
B. Memo from Councilmember Padilla requesting an excused
absence from the September 11, 2018 council meeting.
18-04401.18-0440
Council accept the resignation and excuse the absence. Recommended Action:
A. RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA ACCEPTING BIDS AND AWARDING A
LANDSCAPE MAINTENANCE CONTRACT BETWEEN THE
CITY AND AZTEC LANDSCAPING, INC. FOR LANDSCAPE
MAINTENANCE SERVICES IN BID GROUP 1, OPEN SPACE
DISTRICT 20, ZONES 4, 5, AND 6 IN THE AMOUNT OF
$433,882, AUTHORIZING THE MAYOR TO EXECUTE THE
CONTRACT, AND APPROPRIATING FUNDS
ACCORDINGLY (4/5 VOTE REQUIRED)
B. RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA ACCEPTING BIDS AND AWARDING A
LANDSCAPE MAINTENANCE CONTRACT BETWEEN THE
CITY AND AZTEC LANDSCAPING, INC. FOR LANDSCAPE
MAINTENANCE SERVICES IN BID GROUP 2 OPEN SPACE
DISTRICTS 14, 15, AND 24 IN THE AMOUNT OF $132,571
C. RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA ACCEPTING BIDS AND AWARDING A
LANDSCAPE MAINTENANCE CONTRACT BETWEEN THE
CITY AND TERRACARE ASSOCIATES, LLC. FOR
LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 3
OPEN SPACE FOR COMMUNITY FACILITIES DISTRICT 13
-M OTAY RANCH VILLAGE 2 (NEW DEVELOPMENT) IN
THE AMOUNT OF $120,671, AND APPROPRIATING
FUNDS ACCORDINGLY (4/5 VOTE REQUIRED)
18-02832.18-0283
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September 25, 2018City Council Agenda
D. RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CHULA VISTA ACCEPTING BIDS AND AWARDING A
LANDSCAPE MAINTENANCE CONTRACT BETWEEN THE
CITY AND TERRACARE ASSOCIATES, LLC. FOR
LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 4
COMMUNITY FACILITIES DISTRICT 8M OTAY RANCH
VILLAGE 6 MCMILLIN (VILLAGE 6 MC) AND COMMUNITY
FACILITIES DISTRICT 8M OTAY RANCH VILLAGE 6 OTAY
RANCH (VILLAGE 6 OR) IN THE AMOUNT OF $418,975,
AND APPROPRIATING FUNDS ACCORDINGLY (4/5 VOTE
REQUIRED)
Public Works Department Department:
The Project qualifies for a Categorical Exemption pursuant to the
California Environmental Quality Act State Guidelines Section 15301
Class 1 (Existing Facilities) and/or Section 15304 Class 4 (Minor
Alterations to Land).
Environmental Notice:
Council adopt the resolutions. Recommended Action:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING CITY COUNCIL POLICY 570-02
AND APPROVING A SEWER SERVICE AGREEMENT
BETWEEN CITY OF CHULA VISTA AND THE COUNTY OF
SAN DIEGO FOR OTAY LAKES COUNTY PARK
18-04433.18-0443
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. 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 resolution. Recommended Action:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DECLARING A SHELTER CRISIS, WITHIN
THE MEANING OF GOVERNMENT CODE SECTION 8698,
ET SEQ; AUTHORIZING THE CITY MANAGER TO SEEK
HOMELESS EMERGENCY AID PROGRAM (HEAP) FUNDS
TO ADDRESS SAID SHELTER CRISIS AS PROVIDED FOR
IN SB 850 AND THE 2018-19 BUDGET ACT; AND
RELATED ACTIONS
18-04094.18-0409
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September 25, 2018City Council Agenda
Development Services Department Department:
The activity is not a “Project” as defined under Section 15378 of the
California Environmental Quality Act State Guidelines; therefore,
pursuant to State Guidelines Section 15060(c)(3) no environmental
review is required.
Environmental Notice:
Council adopt the resolution. Recommended Action:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE AMENDED AND
RESTATED JOINT EXERCISE OF POWERS AGREEMENT
BY AND BETWEEN THE CITY OF CHULA VISTA AND THE
SAN DIEGO UNIFIED PORT DISTRICT CREATING THE
CHULA VISTA BAYFRONT FACILITIES FINANCING
AUTHORITY; APPOINTING THE MAYOR TO THE
GOVERNING BOARD OF THE CHULA VISTA BAYFRONT
FACILITIES FINANCING AUTHORITY; AND APPOINTING
THE COUNCILMEMBER REPRESENTING CITY COUNCIL
DISTRICT 2 TO THE GOVERNING BOARD OF THE CHULA
VISTA BAYFRONT FACILITIES FINANCING AUTHORITY
18-03505.18-0350
Development Services Department Department:
The activity is not a “Project” as defined under Section 15378 of the
California Environmental Quality Act State Guidelines; therefore,
pursuant to State Guidelines Section 15060(c)(3) no environmental
review is required.
Environmental Notice:
Council adopt the resolution. Recommended Action:
REPORT GIVING NOTICE OF INTENT TO AMEND THE
CONFLICT OF INTEREST CODE OF THE CITY OF CHULA
VISTA AND DIRECTING THE CITY CLERK AND CITY
ATTORNEY TO RETURN TO COUNCIL TO PRESENT THE
PROPOSED AMENDMENTS WITHIN 90 DAYS
18-03876.18-0387
City Clerk Department:
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)(5) of the State CEQA Guidelines because it an
administrative activity that will not result in direct or indirect physical
changes 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 necessary.
Environmental Notice:
Council accept the report. Recommended Action:
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September 25, 2018City Council Agenda
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE FY 2019 CAPITAL
IMPROVEMENT PROGRAM BUDGET BY ESTABLISHING
NEW CIP PROJECTS: “ROHR PARK RESTROOMS
(MEASURE P),” “FIRE STATION 2 FUELING TANK
REPLACEMENT (MEASURE P),” “MAX FIELD/LOMA
VERDE ACCESSIBILITY STUDY (MEASURE P),” AND
“FIRE STATIONS REPAIR/REPLACEMENT PH II
(MEASURE P);” AMENDING THE INFRASTRUCTURE,
FACILITIES, AND EQUIPMENT EXPENDITURE PLAN TO
INCLUDE SAID PROJECTS; AND AMENDING THE FY 2019
OPERATING AND CIP PROGRAM BUDGETS TO
APPROPRIATE FUNDS ACCORDINGLY
18-03957.18-0395
Finance Department Department:
The activity is not a “Project” as defined under Section 15378 of the
California Environmental Quality Act State Guidelines; therefore,
pursuant to State Guidelines Section 15060(c)(3) no environmental
review is required. 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 resolution. Recommended Action:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING HOUSEHOLD-RELATED
PARKS (HRP) GRANT FUNDS FROM THE DEPARTMENT
OF HOUSING AND COMMUNITY DEVELOPMENT;
AMENDING THE FY 2019 OPERATING AND CAPITAL
IMPROVEMENT PROGRAM BUDGETS IN THE AMOUNT
OF $629,450; ESTABLISHING A NEW CIP PROJECT,
“CIVIC CENTER LIBRARY OUTDOOR DECK ADDITION”
(GGV0244); AND APPROPRIATING THE HRP GRANT
AWARD (4/5 VOTE REQUIRED)
18-04428.18-0442
Finance Department Department:
The Project qualifies for a Categorical Exemption pursuant to the California
Environmental Quality Act State Guidelines Section 15303 Class 3 (New
Construction or Conversion of Small Structures) and/or Section 15301 Class 1
(Existing Facilities).
Environmental Notice:
Council adopt the resolution. Recommended Action:
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September 25, 2018City Council Agenda
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING THE BIDDING REQUIREMENT
AND APPROVING THE SECOND AMENDMENT TO THE
MEDICAL DIRECTOR AGREEMENT BETWEEN THE
REGENTS OF THE UNIVERSITY OF CALIFORNIA AND
THE CITY OF CHULA VISTA FOR MEDICAL DIRECTOR
SERVICES SUPPORTING THE FIRE DEPARTMENT’S
ADVANCE LIFE SUPPORT PROGRAM
18-04329.18-0432
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:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING COMPETITIVE BIDDING AND
APPROVING AN AGREEMENT WITH SOUTH COAST
MEDICAL CLINIC TO PROVIDE MEDICAL SERVICES TO
THE CITY JAIL
18-041910.18-0419
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.
Environmental Notice:
Council adopt the resolution. Recommended Action:
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING $62,815 FROM THE U.S.
DEPARTMENT OF HOMELAND SECURITY AND
APPROPRIATING SAID FUNDS TO THE POLICE GRANTS
SECTION OF THE FEDERAL GRANTS FUND FOR THE
URBAN AREA SECURITY INITIATIVE (4/5 VOTE
REQUIRED)
18-042011.18-0420
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.
Environmental Notice:
Council adopt the resolution. Recommended Action:
ITEMS REMOVED FROM THE CONSENT CALENDAR
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September 25, 2018City Council Agenda
PUBLIC COMMENTS
Persons speaking during Public Comments may address the Council on any subject matter
within the Council’s jurisdiction that is not listed as an item on the agenda. State law generally
prohibits the Council from discussing or taking action on any issue not included on the agenda,
but, if appropriate, the Council may schedule the topic for future discussion or refer the matter
to staff. Comments are limited to three minutes.
PUBLIC HEARINGS
The following item(s) have been advertised as public hearing(s) as required by law. If you wish
to speak on any item, please fill out a “Request to Speak” form (available in the lobby) and
submit it to the City Clerk prior to the meeting.
ORDINANCE OF THE CITY OF CHULA VISTA
CONSOLIDATING THE EASTERN TRANSPORTATION
DEVELOPMENT IMPACT FEE, WESTERN
TRANSPORTATION DEVELOPMENT IMPACT FEE, AND
BAYFRONT DEVELOPMENT IMPACT FEE CHAPTERS OF
THE CHULA VISTA MUNICIPAL CODE BY REPEALING AND
REPLACING CHAPTER 3.54 (TRANSPORTATION
DEVELOPMENT IMPACT FEE) AND REPEALING
CHAPTER 3.55 (WESTERN AND BAYFRONT
TRANSPORTATION DEVELOPMENT IMPACT FEES)
(FIRST READING)
18-037612.18-0376
Development Services Department Department:
The activity is not a “Project” as defined under Section 15378 of the
California Environmental Quality Act State Guidelines; therefore,
pursuant to State Guidelines Section 15060(c)(3) no environmental
review is required.
Environmental Notice:
Council conduct the public hearing and place the ordinance on first
reading.
Recommended Action:
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.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING THE 2014 COMMUNITY AND
MUNICIPAL GREENHOUSE GAS EMISSIONS INVENTORY
REPORTS
18-026013.18-0260
Economic Development Department Department:
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September 25, 2018City Council Agenda
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 resolution. Recommended Action:
PRESENTATION OF FISCAL YEAR 2020 - 2029 GENERAL
FUND LONG-TERM FINANCIAL PLAN
18-032514.18-0325
Finance Department Department:
The activity is not a “Project” as defined under Section 15378 of the
California Environmental Quality Act State Guidelines; therefore,
pursuant to State Guidelines Section 15060(c)(3) no environmental
review is required.
Environmental Notice:
Council accept the report. Recommended Action:
CITY MANAGER’S REPORTS
REPORT REGARDING STATUS OF EXCLUSIVE
N EGOTIATING AGREEMENT (ENA) WITH THE
UNIVERSITY OF SAINT KATHERINE AND REQUEST FOR
INPUT FROM CITY COUNCIL ON CITY MANAGER’S
PENDING NINETY (90) DAY EXTENSION OF THE ENA
18-042315.18-0423
MAYOR’S REPORTS
RATIFICATION OF APPOINTMENT OF ANTHONY
SCLAFANI, BOARD OF APPEALS AND ADVISORS
18-044816.18-0448
COUNCILMEMBERS’ COMMENTS
CITY ATTORNEY'S REPORTS
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September 25, 2018City Council Agenda
CLOSED SESSION
Announcements of actions taken in Closed Session shall be made available by noon on
Wednesday following the Council Meeting at the City Attorney’s office in accordance with the
Ralph M. Brown Act (Government Code 54957.7).
CONFERENCE WITH LEGAL COUNSEL--ANTICIPATED
LITIGATION
Initiation of litigation pursuant to Government Code Section
54956.9(d)(4): [1] Case
(This item was continued from 9/18/2018.)
18-039417.18-0394
ADJOURNMENT
to the Regular City Council Meeting on October 2, 2018, at 5:00 p.m., in the Council Chambers.
Materials provided to the City Council related to any open-session item on this agenda are available for
public review at the City Clerk’s Office, located in City Hall at 276 Fourth Avenue, Building A, during
normal business hours.
In compliance with the
AMERICANS WITH DISABILITIES ACT
The City of Chula Vista requests individuals who require special accommodations to access, attend,
and/or participate in a City meeting, activity, or service, contact the City Clerk’s Office at (619)
691-5041(California Relay Service is available for the hearing impaired by dialing 711) at least
forty-eight hours in advance of the meeting.
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.
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September 25, 2018 File ID: 18-0283
TITLE
CONSIDERATION OF ACCEPTING BIDS AND AWARDING LANDSCAPE MAINTENANCE CONTRACTS FOR
CERTAIN OPEN SPACE DISTRICTS TO AZTEC LANDSCAPING, INC. AND TERRACARE ASSOCIATES, LLC
A. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND
AWARDING A LANDSCAPE MAINTENANCE CONTRACT BETWEEN THE CITY AND AZTEC
LANDSCAPING, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 1 OPEN
SPACE DISTRICT 20 ZONES 4, 5, AND 6 IN THE AMOUNT OF $433,882, AUTHORIZING THE
MAYOR TO EXECUTE THE CONTRACT, AND APPROPRIATING FUNDS ACCORDINGLY
(4/5THS VOTE REQUIRED)
B. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND
AWARDING A LANDSCAPE MAINTENANCE CONTRACT BETWEEN THE CITY AND AZTEC
LANDSCAPING, INC. FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP 2 OPEN
SPACE DISTRICTS 14, 15, AND 24 IN THE AMOUNT OF $132,571
C. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND
AWARDING A LANDSCAPE MAINTENANCE CONTRACT BETWEEN THE CITY AND
TERRACARE ASSOCIATES, LLC FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP
3 OPEN SPACE FOR COMMUNITY FACILITIES DISTRICT 13-M OTAY RANCH VILLAGE 2
(NEW DEVELOPMENT) IN THE AMOUNT OF $120,671, AND APPROPRIATING FUNDS
ACCORDINGLY (4/5THS VOTE REQUIRED)
D. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND
AWARDING A LANDSCAPE MAINTENANCE CONTRACT BETWEEN THE CITY AND
TERRACARE ASSOCIATES, LLC FOR LANDSCAPE MAINTENANCE SERVICES IN BID GROUP
4 COMMUNITY FACILITIES DISTRICT 8M OTAY RANCH VILLAGE 6 MCMILLIN (VILLAGE 6
MC) AND COMMUNITY FACILITIES DISTRICT 8M OTAY RANCH VILLAGE 6 OTAY RANCH
(VILLAGE 6 OR) IN THE AMOUNT OF $418,975, AND APPROPRIATING FUNDS
ACCORDINGLY (4/5THS VOTE REQUIRED)
RECOMMENDED ACTION
Council adopt the resolutions.
SUMMARY
On August 15, 2018, the City received two responsive bids for landscape maintenance services in nine Open
Space Districts (OSDs), the I-805 Direct Access Ramp on E Palomar Street (DAR West), and three
Community Facilities Districts (CFDs). Funding for the OSD and CFD contracts is included within the budget
for each OSD or CFD. Today’s action is to accept the bids, award the contracts to Aztec Landscaping, Inc. and
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Terracare Associates, LLC respectively, and authorize entering into landscape maintenance contracts with
each of the contractors.
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 qualifies for a Categorical
Exemption pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities) and/or Section
15304 Class 4 (Minor Alterations to Land). Thus, no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not Applicable.
DISCUSSION
The City of Chula Vista administers and maintains 36 Open Space Districts, Maintenance Community
Facilities Districts, and their associated zones (collectively the “Districts”). The City levies an annual
assessment on property owners within each District to provide funding for maintenance of common area
spaces. The City contracts with landscape firms to provide landscape maintenance services in the Districts.
In nine OSDs (7; 14; 15; 20 Zones 2, 3, 4, 5, and 6; 24) and two CFDs (Village 6 McMillin and Village 6 OR),
the landscape maintenance contracts are set to expire on September 30, 2018. The I-805 DAR West and
Otay Ranch Village 2 (New Development) are newly acquired landscape maintenance areas. The 13
Districts were divided into four (4) groups (“Bid Groups”) for the purpose of bidding, as some of the
Districts are smaller than others contiguous to them. By combining the areas, economies of scale could be
obtained. The four (4) Bid Groups are as follows:
Group 1 – OSDs 20 Zones 2, 3, 4, 5, and 6;
Group 2 – OSDs 14, 15, and 24;
Group 3 – OSD 7, DAR West, and CFD 13-M Otay Ranch Village 2 (New Development);
Group 4 – CFD 8M Otay Ranch Village 6 MC and Otay Ranch Village 6 OR.
Public Works staff prepared specifications and advertised the services on July 27, 2018. A pre-bid meeting
was held on August 1, 2018. The purpose of the pre-bid meeting was to review and clarify the bid
requirements. Staff explained that bids would be evaluated and contracts awarded by Bid Group to the
lowest responsive bidder.
On August 15, 2018, the Director of Public Works received two (2) responsive bids from the following
companies. The table below reflects the lowest responsive bid for each group and the final proposed
contract amounts.
Bid Group #Contractor 9-month Bid Amount Proposed Contract
1 Aztec Landscaping, Inc.$512,397 $433,882
2 Aztec Landscaping, Inc.$135,451 $132,571
3 Terracare Associates, LLC $304,374 $120,671
4 Terracare Associates, LLC $418,975 $418,975
Notes:
1. After receipt of the bids and final review of available funding, the City will not award contracts for the
following districts:
o Group 1 –City did not award District 20 Zone 2 and 3
o Group 3 –City did not award District 7 or DAR West
2. Group 2 reflects a reduced level of service in District 24 reducing total Group amountto $132,571
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3. Group 3 – Village 2 reflects the acres that the City has accepted and the acres it anticipates to accept in
January 2019.
4. The City will evaluate available funds for the districts not awarded in this bid and will contract
maintenance services for the remainder of the year through a different process. All maintenance
contracts are set to expire at the end of June 30, 2019 and will be competitively bid in early 2019.
Staff recommends accepting the contractors’ bids and awarding the landscape maintenance contracts to
Aztec Landscaping, Inc. and Terracare Associates, LLC respectively as noted above. Key provisions of the
contracts include the following:
(1) The contracts are for the nine-month period of October 1, 2018 to June 30, 2019.
(2) The contractors who bid on this project are required to pay prevailing wages to persons employed
by them for the work performed under this project.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council and has found that Council Member Patricia
Aguilar has real property holdings within 500 feet of the boundaries of District 20 Zone 6 which is the
subject of this action; District 20 Zone 6 is included in Resolution A. Consequently, pursuant to California
Code of Regulations Title 2, sections 18700 and 18702.2(a)(11), this item presents a disqualifying real
property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et
seq.) for the above-identified member.
Staff is not independently aware, and has not been informed by any City Council member, of any other fact
that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy
Community, Strong & Secure Neighborhoods, and a Connected Community. This action supports the goal of
a Healthy Community, which includes maintaining community open space for public enjoyment.
CURRENT-YEAR FISCAL IMPACT
All Open Space landscape maintenance costs will be borne by the respective property owners in each Open
Space District or Community Facilities District; for most districts the maintenance budget included in the
fiscal year 2019 budget is sufficient to cover the cost of the proposed contracts. Appropriations are needed
for the following Districts and there is sufficient available fund balance in each respective funds to make
these appropriations. Approval of the resolutions will authorize the following budget amendments:
Fund Amount Expense Category
Open Space District 20 (Zone 4) $ 27,200 Supplies and Services
CFD 13 OR V2 $125,000 Supplies and Services
CFD 08 V6 M OR $102,000 Supplies and Services
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact because of this action. The contracts will expire at the end of the current
fiscal year. The Open Space Landscape Maintenance contracts will be bid out in calendar year 2019 to
begin new contracts on July 1, 2019. The ongoing fiscal impact will be determined at that time.
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ATTACHMENTS
1. Landscape Maintenance Standards
2.Open Space Bid Package Group 1 - OSD 20 Zn 2-6. Maps
3. Open Space Bid Package Group 2 - OSD 14, 15, & 24 Maps
4. Open Space Bid Package Group 3 - D7, DAR West, & Village 2 Maps
5. Open Space Bid Package Group 4 - CFD Village 6Mc & 6OR Maps
6. Agreement with Aztec – Group 1
7. Agreement with Aztec – Group 2
8. Agreement with Terracare –Group 3
9. Agreement with Terracare –Group 4
Staff Contacts: Angelica Aguilar, Assistant Director of Public Works
Sam Oludunfe, Open Space Manager
2018-09-25 Agenda Packet Page 15
BID NUMBER B06-18/19 Page 1
.
PUBLIC WORKS DEPARTMENT
Open Space Division
Landscape Maintenance Performance Standards
Overview
These principles describe landscape maintenance performance standards for maintaining
designated open space districts in a safe, attractive, and usable condition. Included in these
standards are criteria covering irrigation; pruning and training of trees, shrubs, and groundcovers;
fertilization; weed control; eradication of plant diseases and pests; mowing; brush clearance;
maintenance and repair of irrigation and drainage systems, fences, pathways and trails, walls,
bollards, gates, benches, dog stations, bridges, and lighting. The Contractor shall furnish all
labor, equipment, materials, tools, services, incidentals, and special skills required to perform the
landscape maintenance, including routine debris and trash removal, as set forth in these
specifications.
This contract is a Minimum Staffing requirement contract. The Contractor shall be paid based
upon their performance and compliance with the provisions of this contract.
Traffic Control and Access
All traffic control shall be done in accordance with the latest edition of the Manual of Traffic
Controls prepared by the California Department of Transportation. Contractor shall comply with
all state and local regulations regarding lane and street closures in performance of work.
The Contractor is responsible for obtaining all traffic control plans, devices, and permits. The
Contractor shall work in full conformity with the State of California Manual of Traffic Controls
for Construction and Maintenance Work Zones and the City of Chula Vista Standards and
Specifications. The setting up of traffic control devices shall be done by individuals possessing
either a Class A or C31 License. Full compensation for performing all the work necessary to
comply with these provisions is considered included in the contract unit prices paid for various
items of work; no additional compensation will be allowed.
Safety Standards
Blocking of public streets shall not be permitted unless prior arrangements have been made with
the City’s Engineering Division and duly approved Traffic Control Plans and Permits have been
obtained. The Contractor is responsible to have vehicles moved during arboriculture work.
The Contractor shall provide adequate barricades, flag person(s), signs, and warning devices
during the performance of the Contract to protect motorists and pedestrians. All placements of
cones, signs, and barricades must conform to the American Traffic Safety Standards. Flashing
lights mounted on a vehicle shall not be deemed as sufficient or adequate protection.
Debris and Chip Disposal
Disposal of all logs, limbs, chips and debris generated by work described within this contract
will be the responsibility of the contractor. All tree maintenance debris must be removed before
the close of business each day; there must be no tree maintenance debris left on a work site
overnight.
2018-09-25 Agenda Packet Page 16
BID NUMBER B06-18/19 Page 2
.
All trimmings shall become the responsibility of the Contractor. Trimmings shall be legally
disposed of at an authorized disposal site. Unit Prices quoted for services in this contract by
contractor shall include all labor, traffic control, equipment, materials, insurance, permit and
license fees, disposal costs, profit, overhead, supervision, transportation, and applicable sales tax.
No other compensation will be allowed.
Work Schedule
The Contractor shall accomplish all normal landscape maintenance required between the hours
of 6:00 a.m. and 6:00 p.m., Monday through Friday. No maintenance functions that generate
excess noise that would cause annoyance to residents of the area shall start before 8:00 a.m.,
except in the case of a situation deemed emergency in nature.
The Contractor must establish a daily eight- hour work schedule, with a minimum of six hours
on site which corresponds to City-defined minimum manpower and equipment resource
requirements. The Contractor shall send a Daily Attendance Roster, which is to include all
missing staff members, to the Open Space Inspection staff by 9:00 a.m. each working day. The
Contractor has also been provided the opportunity and procedure for adjusting those schedules to
meet special circumstances.
Failure to complete the work as scheduled or as specified herein will result in the following
actions:
a. The sum of Two Hundred Fifty Dollars ($250) per day will be deducted by the
City and be forfeited by the Contractor from payments to the Contractor
for each instance where an item of work is not completed in accordance
with schedule or specifications.
b. Deficiencies: An additional amount equal to the costs incurred by completion
of the work by an alternate source, whether it be City forces or separate
private contractor, even if it exceeds the contract unit price, will be deducted.
c. The actions outlined in “a” and “b” above shall not be construed as penalty
but as adjustment of payment to the Contractor for only the work actually
performed or as the cost to the City for inspection and other related costs from
the failure by the Contractor to complete the work according to schedule.
d. Holidays: The City is closed and the Contractor shall observe the following
City hard holidays :
• New Year’s Day – January 1
• Martin Luther King Day – Third Monday in January
• Cesar Chavez Day – March 31
• Memorial Day – Last Monday in May
• Independence Day – July 4
• Labor Day – First Monday in September
• Veterans Day – November 11
• Thanksgiving Day – Fourth Thursday in November
• Day after Thanksgiving Day
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• Christmas Day – December 25
Public Convenience
The Contractor shall conduct the work at all times in a manner which will not interfere with
normal pedestrian traffic on adjacent sidewalks or vehicular traffic on adjacent streets or
roadways.
Notification
The Contractor shall provide written notice to the City listing exact starting dates of fertilization
and other infrequent operations such as tree trimming, brow ditch clearing, etc. Such notice shall
be furnished to the Director of Public Works or designee at least ten (10) working days in
advance of the starting date. City approval is required prior to commencement of work.
Irrigation
The contractor shall have the ability to monitor and respond to web-based and other Central
Irrigation Systems. Irrigation shall be done by the use of manual and/or automated systems,
where available and operable; however, failure of the existing irrigation system to provide full
and proper coverage shall not relieve the Contractor of this responsibility. All areas not
adequately covered by a manual and/or automated sprinkler system shall be irrigated by a
portable irrigation method. The Contractor shall furnish all hoses, nozzles, sprinklers, tools,
equipment, and materials necessary to accomplish this supplementary irrigation.
Care shall be exercised to prevent a waste of water, erosion, and detrimental seepage into
existing underground improvements or structures.
When negligence on the part of the Contractor results in excessive use or waste of irrigation
water, water that is used in excess of the monthly budgeted amount may be estimated, with the
cost of the excess water deducted from the contract payment. The City shall be the sole judge of
what constitutes “excessive use” or “waste of irrigation water”. Any damages to public or private
property resulting from excessive irrigation or irrigation water run-off shall be charged against
the contract payment unless the Contractor makes immediate repairs to the satisfaction of the
Director of Public Works or designee.
The Contractor shall turn off all irrigation controllers during periods of rain and turn the
irrigation controllers back on and reprogram them at the end of each rainy period. Periods during
which the irrigation controllers are programmed off do not vacate the Contractor’s responsibility
to inspect, monitor, and repair the irrigation systems.
The Contractor shall keep irrigation controllers, electric meters, pull boxes, and valve boxes clear
of plant material, soil, debris, and pests. The Contractor shall maintain the systems throughout
the work site at no additional cost to the City. The systems maintenance includes, but is not
limited to, the replacements, repairs, adjustments, raising or lowering, straightening, and any
other operation required for the continued efficient operation of the systems.
The City will compensate the Contractor for materials used in the repair of irrigation damaged by
vandalism, theft, disappearance or wear and tear of irrigation components through normal use.
Contractor will be reimbursed for parts and up to 10% handling costs on approved irrigation
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repair invoices. Labor, tools, equipment, and other overhead expenses are considered to be
included in the contract amount bid to maintain each pertinent Open Space district. Upon receipt
of an approved invoice from the Contractor itemizing the materials involved, payment will be
processed in accordance with established terms. The Contractor will be responsible for
monitoring and maintaining irrigation parts costs within the established budget for each pertinent
Open Space district. Any necessary parts purchases that may exceed the annual budget for parts
in a District must have pre-approval from the Inspector for the District or risk non-payment. The
City reserves the right to designate suppliers for these repair materials.
A written report shall be submitted by the Contractor for all occurrences of vandalism, theft,
disappearance or worn out irrigation components, detailing the quantity, size, and location no
later than five (5) working days after the discovery of such occurrence. Contractor’s failure to
meet this requirement will result in Contractor’s responsibility for total repair costs.
The Contractor shall inspect, at least once each week, the operation of the irrigation system for
any malfunction.
Any replacement must conform to the type and kind of existing system. The Director of Public
Works or designee must approve, in writing, any deviation from the existing type.
The Contractor shall, at the beginning of the maintenance period, inspect the entire sprinkler
system with the City's representative to become familiar with the locations of valves, heads,
controllers, electric valves, meters, and hose bibs.
Special attention shall be directed to the maintenance of sprinkler equipment. Risers shall be
adjusted by extension, restaked as needed, and relocated as plant material grows up or spreads
out in a way that adversely affects the performance of the sprinklers. The Contractor shall
promptly repair any damage to, or malfunction of, the irrigation system. At no time will systems
be shut down for extended periods – repairs are to be made as soon as discovered and reported.
Required Irrigation Reports
Full and complete irrigation systems check, including a mainline leak test and a meter reading,
shall be performed monthly. This information shall be included in the monthly irrigation report
on the Irrigation Check Sheet. The Check Sheet will be provided to the Contractor.
The Monthly Irrigation Tracking Sheet and any repair invoices for parts and handling from the
prior month shall be submitted to the Open Space Inspector for each area by the fifth day of each
month, prior to authorization of monthly maintenance payments.
In addition to the Monthly Irrigation Tracking Sheet, the Contractor shall provide a spreadsheet
showing cumulative monthly water usage for each water meter.
The City may require a change in the irrigation schedule at any time for water conservation. The
contractor shall be responsible for input and maintenance of irrigation schedules and programs as
directed by the City.
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Reclaimed water
The Contractor will be responsible for following all local, state, and federal laws related to
reclaimed water irrigation installation and operation. This shall include any fees and/or fines
incurred.
The Contractor shall have a Reclaimed Water Site Supervisor Certificate from the local water
purveyor.
Water Conservation
The Contractor shall abide by any and all water conservation programs currently in effect by the
water purveyor, and will be responsible for compliance with any emergency guidelines, rules,
and regulations effected during water crises. The consequences of failure to observe, obey, and
comply with the aforementioned emergency guidelines, rules, and regulations will be the
financial responsibility of the Contractor. For example, negligent or delayed irrigation system
maintenance producing water waste which results in citations or fines by the water purveyor will
be the responsibility of the Contractor.
Irrigation scheduling programs will be set by the Department of Public Works or a
representative. Any changes in programming must be done with prior City approval.
Irrigating Trees and Shrubs
The City at its sole option may decide to plant new trees or other landscape material within the
maintained area. The Contractor shall be responsible for providing adequate supplemental
irrigation following planting to facilitate new growth during the establishment period. The
Contractor at no additional cost to the City shall provide additional weed control, irrigation
maintenance, and plant maintenance required until plants are established.
Maintaining Shrubs and Groundcovers
All shrubs and groundcovers growing in the work area shall be pruned, as required, to maintain
plants in a healthy growing condition. Damaged or dead limbs or branches shall be removed
immediately and all pruning cuts shall be made properly and cleanly with sharp pruning tools,
with no projections or stubs remaining.
All plant pruning shall be accomplished in a manner which will permit the plants to grow
naturally in accordance with their normal growth characteristics. Shrubs used as formal hedges
or screens shall be pruned as required to present a neat appearance. A formal hedge, whether new
or established, shall be tapered so that it is wider at the bottom than the top, ensuring the lower
part will get the sunlight it needs for healthy growth.
Spent blossoms and dead flower stalks shall be removed as required to present a neat and clean
appearance.
Shrubs and mounding plants shall not exceed two feet (2') in height within areas required for
vehicular sight clearance depending upon roadway topography and alignment.
The Contractor shall:
• Trim groundcovers adjacent to walks, walls, and fences as required for general
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containment to present a neat, clean appearance.
• Keep groundcovers trimmed back from all controller units, valve boxes, quick couplers,
fixtures, and other appurtenances.
• Not allow groundcovers to grow up trees, into shrubs, or on structures or walls.
• Keep groundcovers trimmed back approximately four inches (4") from structures or
walls.
• Coordinate trimming around base of shrubs and trees with the City Representative.
Weed and Pest Control
All landscaped spaces within the specified maintenance area shall be kept free of weeds at all
times. This means that complete removal of all weed growth shall be accomplished on a
continual basis as weeds appear, and not just once every 30 days. Weeds shall be controlled by
manual, mechanical, or chemical methods.
Effective pest control, including the control of snails and vertebrate pests such as gophers, moles,
and all such shall be performed in a safe manner for maximum control and also to minimize
exposure of the surrounding environment to chemicals.
Weed and pest controls must include the use of integrated pest management (IPM) practices
wherever possible. Monitoring of pest populations and natural predators and cultural practices to
promote healthy, pest-resistant plant material are just a few examples of techniques that can be
employed to minimize and augment chemical methods.
Pesticides shall be applied at appropriate times which limit the possibility of environmental
contamination through climatic or other factors and at the proper life cycle stage of the pests.
Early morning application shall be used when possible to avoid environmental contamination
from drift.
Application of all pesticides shall be carried out only by State-licensed Pest Control Operators or
Qualified Applicator License (QAL) holders.
Weed control chemicals shall be approved by the City prior to application. The Contractor is
responsible for obtaining and maintaining site-specific written recommendations from a Pesticide
Advisor prior to any applications. The Contractor is also responsible for all chemical use
reporting required by the Department of Pesticide Regulation (DPR) in any area where herbicide
or pesticide application will take place. Safety Data Sheets (SDS) are required for all proposed
chemical applications.
All noxious plant materials such as, but not limited to, poison oak, wild mustard, pampas grass,
tamarix, Arundo cane, and tumbleweeds shall be removed immediately by hand. All pathways,
sidewalks, curbs, and gutters shall be kept free of weeds by use of contact weed control
chemicals.
Weed grasses as well as broadleaf weeds shall be kept out of shrubs and groundcovers. Weeds
and plant materials removed shall be disposed off-site by the Contractor in a manner consistent
with Federal, State, and Local rules and regulations. Turf and other plants killed by weeds,
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chemicals, and pests shall be replaced at the Contractor's expense. All replacements must be
made after receiving notice from the City.
Fertilization: Composition, Packaging, Schedule, Rate of Application
All proposed fertilizers must be approved by City staff prior to purchase or application in the
field. All fertilizers must be of a homogeneous blend, and must be pre-approved prior to
purchase. An Open Space Inspector must count all bags prior to application.
Fertilizer shall be provided in fifty-pound (50-lb), multi-wall paper bags, polyethylene-lined for
moisture resistance, or plastic bags.
The fertilizers shall be brought to the site in the original unopened containers bearing the
manufacturer's guaranteed analysis. Damaged packages will not be accepted. The Contractor
shall furnish the Director of Public Works or designee with signed legible duplicate copies of all
certificates and invoices for all fertilizer to be used.
The invoices must state the grade, amount, and quantity received. The Director of Public Works
or designee on site must sign both the copy to be retained by the City and the Contractor’s copy
before any material may be used. The Contractor may not begin the actual fertilizer application
until approval by the City has been obtained.
Additionally, the Contractor shall submit as part of his written notice a schedule showing the
site, amount of fertilizer (in number of bags) to be applied in the District, proposed date of
application, and the approximate time of application of the fertilizer. Fertilizer type proposed
requires prior City approval. The City shall be the sole judge of the acceptability of a fertilizer
type. Material Safety Data Sheets (MSDS) shall be provided upon submittal of fertilizers for
approval.
Adequate irrigation will immediately follow the application of fertilizer to force the fertilizer to
rest directly on the soil surface. Care shall be taken to ensure the fertilizer does not become
caught in the plant foliage above the soil line. Excessive watering must be avoided to prevent the
erosion of fertilizing materials or soil.
In performing periodic operations as required herein, routine grounds maintenance services at the
same work site such as, but not limited to, litter control, weed control, and irrigation shall
continue without interruption.
Fertilization: Trees, Shrubs, Groundcovers
Fertilization of all trees, shrubs and groundcovers, including plantings on hydroseeded banks
within the District, shall be accomplished two (2) times per year by using an approved
commercial grade fertilizer.
Fertilization shall be applied within the following time frames:
1. Sept 15-30
2. April 15-30
Fertilizer with a formulation of 12-4-6 or equivalent shall be applied at one (1) pound of actual
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nitrogen per 1,000 square feet of planted area for shrubs, vines, groundcovers, and trees.
Acceptable organic fertilizer would contain a combination of naturally-derived organic
components and synthetic organic and inorganic components. The organic portion will be
derived from dehydrated poultry manure obtained primarily from layers. Combining the various
components creates a mixture of materials that will stimulate microbial activity in the soil in a
way that enhances conversion of nutrients into forms usable by plants. The manure should be
heat-treated below the combustion point to remove moisture and kill any pathogens that may be
present. Product will be routinely tested for presence of enteric bacteria. Composted organic
components will not be acceptable. Acceptable equivalent fertilizer formulations must have the
ability to lower soil pH in the short term to facilitate uptake of nutrients by plant materials.
Fertilization: Turf
Fertilization of all lawn areas within the designated work area shall be accomplished four (4)
times per year with approved commercial grade fertilizers.
Fertilizer shall be applied to lawns within the following time frames:
1. September 1-15
2. November 15-30
3. March 1-15
4. June 1-15
Fertilizer shall be applied at one (1) pound of actual nitrogen per 1,000 square feet of planted
area. Fertilization must occur in the months listed above and shall be accomplished to achieve an
even green appearance. If fertilization results are patchy, remedial fertilizer must be applied
immediately at the Contractor’s expense. Acceptable fertilizers include: September application =
Super Iron 9-9-9; November application = Nitra King® 19-4-4; March application = Iron
Advantage 15-4-6; June application = Super Turf 25-5-5; or pre-approved equivalents.
Lawn Maintenance
Mowing shall be performed so that no more than one-third (1/3) of the grass blade is removed
during each mowing in returning the grass to the accepted height for the species of grass being
mowed. Inclement weather may preclude adherence to the frequency schedule. The Contractor
may request alteration of this mowing frequency from the Director of Public Works or designee
for reasons of rain or prolonged cold.
The Contractor shall bag all lawn clippings.
The following mowing schedule shall apply to all Code 2 lawn areas listed in the bid portion of
the contract document:
Mowing Frequency & Requirements
March 1 – November 30: 1 time each week;
December 1 – February 28: 1 time every 2 weeks.
All turf shall be edged adjacent to all improved surfaces. Where no improved surface exists, turf
edges shall be maintained if the turf area abuts a shrub bed, property line, or to maintain turf
delineation.
Lawn areas shall be aerated a minimum of two (2) times each year and will be scheduled to
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occur during the following time frames:
1. April 15-30
2. August 15-30
Under adverse conditions or as a result of high use where turf is suffering from compaction,
aeration may be necessary at more frequent intervals. Aeration shall be done with a power-driven
or tractor-pulled aerator using one-half-inch coring tines.
In performing periodic operations as required herein, routine grounds maintenance services at the
same work site such as, but not limited to, litter control, weed control, and irrigation shall
continue without interruption.
Tree Maintenance
Trees shall be pruned as required to remove crowded, broken, diseased, dead, or hazardous
branches or for safety. The Contractor performing the tree work shall be responsible for targeted
pruning that will ultimately develop proper tree scaffold branches, strength, and appearance
consistent with current International Society of Arboriculture (ISA) and American National
Standards Institute (ANSI) A300 Tree Pruning Standards. All major tree pruning operations shall
be scheduled and approved by the City Representative before work begins. If applicable, the
Contractor shall have an approved set of Traffic Control Plans. All routine annual tree
trimming shall begin November 1 and be completed no later than February 28.
The Contractor shall check and correct tree stakes, ties, and guys as needed, adjust ties to prevent
girdling, remove unneeded stakes, ties, and guys per City's request, and replace broken stakes as
required.
Topping of trees will not be allowed. Climbing spurs, except in the case of emergency or tree
removal, will not be allowed. Pruning shall be done under the direction of an ISA Certified
Arborist, utilizing proper techniques to promote healthy growth and to avoid damage from
improper tree pruning methods. Tree wound dressing will not be allowed. When pruning date
palm trees, equipment shall be disinfected before and after trimming each tree and prior to
progressing to the next tree.
Low overhanging branches shall be maintained at a minimum height of 14 feet above
street/roadway grade at all times. Low branches overhanging sidewalks and parkways shall be
maintained at a minimum height of eight (8) feet above grade at all times. Ailing or stunted trees
that fail to meet typical growth expectations shall be brought to the attention of the City
Representative.
Under no circumstances will stripping of lower branches of young trees be permitted. Lower
branches shall be retained in a "tipped back" or pinched condition with as much foliage as
possible to promote caliper-retained growth (tapered trunk). If there are doubts or questions,
contact the City Representative.
All trees shall be maintained in their natural shapes. The Contractor shall continuously remove
"hanger" limbs and other obvious safety hazards as required.
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Trees lost from causes other than Contractor’s negligence shall be removed and replaced by the
Contractor with 15-gallon size trees at the City's expense. The Director of Public Works or
designee may specify an alternate tree species to replace the tree that was lost in each case. Any
tree leaning or showing signs of root heaving shall be brought to the attention of the Director of
Public Works or designee. If, in the judgment of the Director of Public Works, the tree must be
removed, the Contractor shall, at his sole expense, remove said tree by flush-cutting. Undesirable
growth from the remaining stump shall be controlled by a City-approved method.
In performing periodic operations as required herein, routine grounds maintenance services at the
same work site such as, but not limited to, litter control, weed control, and irrigation shall
continue without interruption.
Low Flow and Brow Channel Maintenance
During the months of September and October, the Contractor shall clean all soil and debris from
the channels and cut all overhanging plant materials back such that staff can easily walk all
ditches for inspection. All plant materials and debris, other than soil and rocks, shall be removed
from the job site.
During the year, woody plant materials growing in the cracks or edges of the channel shall be
removed to prevent damage to the concrete. Also, any loose materials, other than soil, shall be
removed during the contract year. Following the rainy season, in late Spring, removal of
accumulated sedimentation will be required.
In performing periodic operations as required herein, routine grounds maintenance services at the
same work site such as, but not limited to, litter control, weed control, and irrigation shall
continue without interruption.
Removal of Debris
Promptly after pruning, trimming, weeding, edging, and other work required, the Contractor
shall remove all debris generated by his/her performance of the work. Immediately after working
in the areas of public walks, driveways, medians, or paved areas, they shall be thoroughly
cleaned. If the Contractor’s maintenance crews find appliances, furniture, or excessive
trash within any Open Space area, they shall notify the Open Space Inspection staff
immediately.
All areas shall be kept free of, but not limited to, the following: bottles, cans, paper, cardboard,
and metallic items. Removal of common debris, including emptying of waste receptacles, shall
be performed on a continual basis with a minimum of once-a-week pick-up. Areas containing
medians, walkways, or asphaltic concrete, stamped or textured concrete, and/or concrete shall be
swept as needed to maintain such walkways and areas in a safe and attractive manner.
Replacement of Plant Materials
The Contractor shall replace any tree, shrub, or groundcover plant which is damaged or lost as a
result of faulty maintenance at no additional cost to the City. The Director of Public Works or
City representative shall be the sole judge of what constitutes “faulty maintenance”.
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Any plant damaged or lost through vandalism shall be replaced at City expense. Costs for
replacement of plants and trees lost through vandalism shall be at a mutually negotiated charge.
At the City’s sole discretion, it may be desirable to replace certain plants during the contract
term. The Director of Public Works or City representative shall determine the necessity or
desirability of such plant replacement. The City will be responsible for the cost of replacing the
plants. The Contractor shall be responsible for the maintenance of the replacement plants at no
additional cost to the City.
Brush Clearance
Contractor will be responsible for yearly brush clearance where the Open Space District borders
private property and when directed by the City’s Fire Marshal. A standard clearance of 10 feet
from property line will be maintained with a minimum of 30 feet distance from any attached
private structure. In areas where the residence may be closer than 20 feet to the property line,
additional clearance may be required to establish the 30 feet minimum clearance. The Contractor
shall take notice of potential areas to be cleared during the pre-bid inspection as no adjustment in
contract pricing will be allowed after contract award. Cleared material shall be legally disposed
of from the work area.
Environmental Regulations
The Contractor shall abide by all local, state, and federal laws related to environmentally
sensitive lands located within the Districts. Large portions of Code 4 and Code 5 areas are
located within Multiple Species Conservation Plan (MSCP) areas and may contain protected or
endangered species. Any maintenance activities performed within these areas will be subject to
all regulations contained within the MSCP and must be pre-approved and closely monitored by
City of Chula Vista Environmental Planning staff.
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CODE 1
CODE 2
CODE 3
CODE 4
5
CODE 5
OPEN SPACE LANDSCAPE MAINTENANCE
AREA CODE DESCRIPTIONS
CODE
AREA IDENTIFICATION
DESCRIPTION
Areas containing permanent irrigation systems planted in
groundcovers, shrubs, and trees. Code 1 areas shall be kept weed-free
at all times. Plant materials and grasses not consistent with established
plantings are considered weeds. Any areas not fully covered with
planted groundcovers are to be replanted by the contractor and grown
to fully cover the areas during the normal growing season, at no
additional cost to the City. Weeding shall be done as necessary to
create a well-balanced appearance.
1
2 Code 2 areas are lawns with permanent irrigation systems. Weeding
shall be done as necessary to create a well-manicured appearance.
3 Areas containing permanent irrigation systems and initially planted
with hydroseed mix, groundcovers, shrubs, and trees. Code 3 areas
shall be kept weed-free as required by the Director of Public Works
or designee. Plants (wild flowers and grasses) not consistent with
the original hydroseed mix are weeds. The intent is to maintain a
healthy vegetation cover for erosion control purposes.
4
Code 4 areas contain temporary or permanent irrigation systems in
natural open space lands and slopes with indigenous plant growth.
The Contractor shall perform weed abatement in these areas, as
required by the Director of Public Works or designee, to control
noxious plant materials such as tumbleweeds, pampas grass,
tamarix, and Arundo cane. The Contractor shall maintain trails on
a weekly basis to ensure clear, smooth, trash-free travel routes,
quarterly grooming to include re-compacting of loose paving
materials, and immediate response to needed repairs after rain
events. Trail maintenance includes header board and curbing
repair.
Two times per year, areas of non-irrigated open space shall be
cleaned of debris including but not limited to the following:
bottles, cans, paper, cardboard, or metallic items. Contractor
shall remove noxious plant materials such as tumbleweeds,
pampas grass, tamarix, and Arundo cane, as directed by the
Director of Public Works or designee.
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Deficient Performance
The Contractor shall be notified verbally or in writing each time performance is unsatisfactory
and corrective action is necessary. The Contractor shall complete corrective action within the
following time frames subsequent to verbal notification:
a. Major irrigation malfunction must be repaired within twelve (12) hours.
b. Public Health and Safety issues (Risk Management) shall be
corrected immediately upon notification from the City Representative.
c. Failure to comply with City-defined minimum manpower requirements will
result in the immediate deficiency deduction of Three Hundred Fifty Dollars
($350) per person per day from payments to the Contractor.
d. Failure to immediately comply with conditions, specifications, schedules, and
directives from Public Works Director or designee will result in a deficiency
deduction of Two Hundred Fifty Dollars ($250) per instance from payments
to the Contractor.
e. Failure to mow, edge, trim, hedge, aerate, sweep, pick up trash/debris,
perform brow channel maintenance or trail maintenance, perform brush
management, apply chemicals, or prune in an approved, professional manner
as specified in this contract or as directed by the Public Works Director or
designee will result in a Two Hundred Fifty Dollar ($250) per day deduction
until all deficiencies are corrected.
f. Failure to comply with water restrictions imposed by Local Water Authorities
will result in a deficiency deduction of Two Hundred Fifty Dollars ($250) per
occurrence. Additionally, the Contractor shall be responsible for all other
penalties imposed by Water Authorities for infractions due to Contractor
neglect.
g. Failure to respond to an emergency call within fifteen (15) minutes during
working hours will result in a Two Hundred Fifty Dollar ($250) deficiency
deduction per occurrence. Failure to respond to an emergency call within sixty
(60) minutes outside of working hours will result in a Two Hundred Fifty
Dollar ($250) deficiency deduction per occurrence.
h. Failure to comply with the Regional Water Quality Board/National Pollutant
Discharge Elimination System (NPDES) restrictions/guidelines imposed by
Local Water Authorities will result in a deficiency deduction of Two Hundred
Fifty Dollars ($250) per occurrence. Additionally, the Contractor shall be
responsible for all other penalties imposed by Water Authorities for
infractions due to Contractor neglect.
i. Failure to submit all monthly irrigation-tracking sheets in a timely manner
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will result in a deficiency deduction of Two Hundred Fifty Dollars ($250.00)
per occurrence.
Withholding of Payments
The City may withhold or permanently retain payments to such extent as may be necessary to
protect the City from loss due to:
1. Work required in the specifications, which is defective, incomplete, or not performed.
2. Claims filed against the City for damage caused by the Contractor’s acts or reasonable
evidence indicating probable filing of claims.
3. Failure of the Contractor to make proper payments to subcontractors for materials or
labor.
4. A reasonable doubt that the contract can be completed for the unpaid balance.
Failure to Perform Satisfactorily
It is agreed and understood that if the Contractor fails to perform the work as required, the
Director of Public Works (1) will pay only for the amount of service received as determined
solely by the City, with an appropriate downward adjustment in contract price, or (2) may have
such required work done by City crews or otherwise and charge the cost thereof to the Contractor
or Contractor’s surety agent.
Those discrepancies and deficiencies in the work that remain uncorrected may result in billing
adjustments in the following month. Billing adjustments for this unsatisfactory service shall be
permanent retention of 100% of the estimated monthly cost for work that is incomplete or
deficient as stated herein.
Should failure to perform persist, the City reserves the right to take action against the
performance bond or terminate the contract.
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General Conditions
Bidder’s Security
A bid security in an amount equal to ten percent (10%) of the bid is required. The bid security
may be furnished in the form of cash, cashier’s check, certified check, or a bid bond. If the bid
security is a bond, it shall be executed by a surety company authorized to transact business in the
State of California. The bid security must be included in the sealed envelope with the bid
proposal.
Performance Bond
Contractor shall furnish the City with a surety bond conditioned upon the faithful performance of
the contract. The bond shall be in a sum equal to twenty-five percent (25%) of the amount of
contract price. This bond shall be executed by a surety company authorized to do business in the
State of California and approved by the City of Chula Vista. An endorsed Certificate of Deposit,
money order, or certified check may be provided in lieu of an actual bond. Such bond or deposit
shall be forfeited to the City in the event that the Contractor fails or refuses to fulfill all
performance requirements of the contract.
If the contract is optioned for future years, for the purpose of renewing the contract, the
Contractor shall provide a new valid faithful performance bond no later than thirty (30) days
prior to the current faithful performance bond expiration date. Failure by the Contractor to
provide the new faithful performance bond shall be considered a default by Contractor and may
subject the Contractor to a suspension or termination of work under the contract.
Payment Bond
Contractor shall furnish the City with a payment bond in a sum equal to twenty-five percent
(25%) of the amount of contract price. The payment bond shall be provided with and in a form
similar to the performance bond. The payment bond shall guarantee that all laborers, material
suppliers, and subcontractors will receive full payment for their services.
If the contract is optioned for future years, for the purpose of renewing the contract, the
Contractor shall provide a new valid payment bond no later than thirty (30) days prior to the
current payment bond expiration date. Failure by the Contractor to provide the new payment
bond shall be considered a default by Contractor and may subject the Contractor to a suspension
or termination of work under the contract.
Insurance
A. Contractor shall, throughout the duration of the contract, maintain comprehensive general
liability, property damage, and automobile insurance, or commercial general liability insurance,
covering all operations of Contractor, its agents, and employees, performed in connection with
the contract, including but not limited to premises and automobiles.
B. Contractor shall maintain the following minimum limits:
General Liability
Combined Single Limit Per Occurrence $1,000,000
General Liability $1,000,000
Property Damage $1,000,000
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BID NUMBER B06-18/19 Page 16
Automobile Liability $1,000,000
The City reserves the right to require insurance for a higher coverage than the minimum limits.
C. All insurance companies affording coverage to the Contractor shall be required to add the
City of Chula Vista as an "additional insured" under the insurance policy for all work
performed in accordance with the contract. All insurance companies policies shall be issued
by a carrier that has Best's rating of "A; Class V" or better, or shall meet with the approval of
City's Risk Manager.
D. All insurance companies affording coverage shall provide thirty (30) days written notice to
the City of Chula Vista should the policy be canceled before the expiration date. For the
purposes of this notice requirement, any material change in the policy prior to the expiration
shall be considered a cancellation.
E. Evidence of such coverage, in the form of a Certificate of Insurance and Policy Endorsement,
shall be submitted to the Purchasing Division within ten (10) days after the award of
Contract. This endorsement must be on a separate "Schedule B". Contractor shall provide a
substitute certificate of insurance no later than thirty (30) days prior to the policy expiration
date. Failure by the Contractor to provide such a substitution and extend the policy expiration
date shall be considered a default by Contractor and may subject the Contractor to a
suspension or termination of work under the contract.
Insurance Certificates shall not include "Modified Occurrence" restrictions. No substitutions
shall be allowed.
Worker's Compensation Insurance
The Contractor shall carry Worker’s Compensation insurance in statutory amount and
Employer's Liability coverage in an amount not less than $500,000 and up to $1,000,000 at the
City’s discretion; evidence of these shall be furnished to the City in the form of Certificate of
Insurance.
Hold Harmless and Indemnification
Contractor shall defend, indemnify, protect, and hold harmless the City of Chula Vista, its
elected and appointed officers and employees, from and against any and all claims for damages,
liability, cost and expense (including without limitation attorney’s fees) arising out of the
conduct of the Contractor, or any agent or employee, subcontractors, or others in connection with
the execution of the work covered by the contract, except only for those claims arising from the
sole negligence or sole willful misconduct of the City, its officers, or employees.
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BID NUMBER B06-18/19 Page 17
Contractor’s indemnification shall include any and all costs, expenses, attorney’s fees, and
liability incurred by the City, its officers, agents, or employees in defending against such claims,
whether the same proceed to judgment or not. Furthermore, Contractor at its sole expense, shall,
upon written request by the City, defend any such suit or action brought against the City, its
officers, agents, or employees. Contractor’s indemnification of City shall not be limited by any
prior or subsequent declaration by the Contractor.
Taxes
All applicable State or Federal taxes shall be considered as included in the amount paid for
services performed. The Contractor shall be responsible for payment of such taxes to the proper
governmental authority.
Licenses and Permits
Contractor and all subcontractors, if any, shall be licensed in accordance with the provisions of
Chapter 9 of Division III of the Business and Professions Code, State of California.
Contractor shall procure all licenses and permits required to perform the work described.
Contractor shall further pay all charges and fees required to maintain required licenses and
permits. The Contractor and subcontractors shall possess a valid City of Chula Vista Business
License while performing work within City limits.
Term
Contractor shall perform all services required as specified on the Bid Form through June 30,
2019.
Measurement of Quantities for Unit Price Work
The estimate of the quantities of work to be done and materials to be furnished are approximate
only, being given as a basis for the comparison of bids. The City of Chula Vista does not
expressly or by implication agree that the actual amount of work will correspond therewith, but
reserves the right to increase or decrease by any amount or to omit portions of the work as may
be deemed necessary or expedient by the City with no adjustment in unit price. The City of
Chula Vista reserves the right to use Contractor unit pricing to facilitate Developer turn-overs for
landscaped area being added to any Community Facilities District (CFD) area or adjacent to
CFD-maintained areas.
Cooperation
Contractor shall work closely with the Director of Public Works or designee to perform work
required to achieve the City’s objectives. The Director of Public Works may delegate authority
in connection with this Agreement to the Open Space Manager. For the purposes of directing the
Contractor’s performance, authority is hereby delegated to the Open Space Manager.
Inspection by City
The City will inspect the work area to ensure adequacy of maintenance and that methods of
performing the work are in compliance with the contract. Discrepancies and deficiencies in the
work shall be corrected by the Contractor immediately upon notification by the City.
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BID NUMBER B06-18/19 Page 18
Maintenance services performed by the Contractor shall be performed to the satisfaction of City,
Director of Public Works, or designee.
Method of Payment; Monthly Reports
The Contractor will be paid monthly, in arrears, for work performed satisfactorily. By the fifth
day of each month, the Contractor shall submit a detailed report of maintenance performed and
materials used, areas and/or units affected, and staff hours expended in the prior month as well as
the required Monthly Irrigation Tracking Form (see Irrigation section, pages 3 and 4), irrigation
parts billing, and monthly maintenance billing.
The monthly report shall also include a statement of all applications of herbicides, rodenticide,
and pesticides detailing the chemical used, quantity, rate of application, area in which used, and
the purpose of the application.
Upon successful completion of a month’s work, payment will be made equal to one twelfth of
the annual contract bid price. Billing shall be in accordance with bid prices submitted and
allowing for City approved adjustments, if any.
Emergency Calls
The Contractor shall have the capability to receive and respond immediately to calls of an
emergency nature during normal working hours and during hours outside of normal working
hours. Calls of an emergency nature received by the Director of Public Works shall be referred to
the Contractor for immediate disposition.
Personnel
The Contractor shall furnish sufficient supervisory and working personnel capable of promptly
accomplishing on schedule, and to the satisfaction of the Director of Public Works, all work
required under this contract during the regular and prescribed hours. All such personnel shall be
physically able to do their assigned work.
The Contractor and his employees shall conduct themselves in a proper, safe, professional, and
efficient manner at all times and shall cause the least possible annoyance to the public. They
shall be fully clothed in suitable uniform attire with a company-identifying marker; personnel
fully clothed and wearing a safety vest with the company identification on the back will be
considered suitable uniform attire.
The Director of Public Works will require the Contractor to remove from the work site any
employee(s) deemed careless, incompetent, or otherwise objectionable, whose continued
employment on the job is considered to be contrary to the best interest of the City of Chula Vista.
The Contractor shall have competent supervisors, who may be working supervisors, on the job at
all times work is being performed, who are capable of discussing in English with the Director of
Public Works matters pertaining to work required. Supervisors must have a minimum of three
(3) years of actual field experience and must be able to demonstrate to the satisfaction of the
Director of Public Works that they possess adequate technical background. Adequate and
competent supervision shall be provided for all work done by the Contractor's employees to
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BID NUMBER B06-18/19 Page 19
ensure accomplishment of high quality work which will be acceptable to the Director of Public
Works. Additionally, a non-working supervisor shall inspect all areas under the contract a
minimum of once per month with the Director of Public Works or designee.
Independent Contractor
Contractor's relationship to the City shall be that of an independent contractor. Contractor shall
have no authority, expressed or implied, to act on behalf of the City as an agent, or to bind the
City to any obligation whatsoever. Contractor shall be solely responsible for the performance of
any of its employees, agents, or subcontractors under any contract awarded. Contractor shall
report to the City any and all employees, agents, and subcontractors and/or consultants
performing work, in connection with this contract, and all shall be subject to prior approval of
the City.
Prevailing Wages
Legislation by the State of California imposes prevailing wage requirements on the work to be
performed by Contractor during the term of this contract.
Department of Industrial Relations (DIR) Registration Requirements
• No contractor or subcontractor may be listed on a bid proposal for a public works project
(submitted on or after March 1, 2015) unless registered with the Department of Industrial
Relations pursuant to Labor Code section 1725.5 [with limited exceptions from this
requirement for bid purposes only under Labor Code section 1771.l(a)].
• No contractor or subcontractor may be awarded a contract for public work on a public
works project (awarded on or after April 1, 2015) unless registered with the Department
of Industrial Relations pursuant to Labor Code section 1725.5.
• This contract is subject to compliance monitoring and enforcement by the Department of
Industrial Relations.
Wage Rates for State-funded Projects/Contracts
The contractor and its subcontractors are required by bid specifications to pay prevailing wage
("Prevailing Wage Rates") to persons employed by them for work under this Contract. In
accordance with the provisions of Section 1773 of the Labor Code of the State of California, the
City of Chula Vista has ascertained the general prevailing wage scales applicable to the work to
be done. The prevailing wage scales are those determined by the Director of Industrial Relations,
State of California.
The State prevailing wage rates determination is available directly from the State of California
Director of Industrial Relations home page under www.dir.ca.gov/dlsr/.
Non-Discrimination
The City of Chula Vista hereby notifies all bidders that it will affirmatively ensure that in any
contract entered into pursuant to this notice, minority business enterprises will be afforded full
opportunity to submit bids in response to this invitation and will not be discriminated against on
the grounds of race, color, sex, or national origin in consideration for an award.
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BID NUMBER B06-18/19 Page 20
Termination for Cause
The following conditions constitute default for which the City may terminate a contract:
A. Any material misrepresentation, whether negligent or intentional, by Contractor.
B. Contractor’s failure to perform any of its material obligations under a contract, including but
not limited to:
1. Failure to perform any obligations reasonably within Contractor’s control (including but
not limited to lack of sufficient or adequate personnel, equipment, and/or materials);
2. Contractor’s failure to promptly perform or correct any of its obligations;
3. Contractor’s unapproved discontinuance of any of its obligations required under a
contract;
4. Contractor’s insolvency, filing for bankruptcy, or unapproved assignment for the benefit
of creditors or otherwise.
Prior to terminating a contract for cause, the City will first notify the Contractor in writing of
such failure to meet the obligations of a contract. Within ten (10) calendar days of such written
notice, Contractor shall have corrected the failure or shall have provided a written cure plan
acceptable to the City that outlines its current or planned actions to correct such failure. If the
Contractor fails to cure such breach or provide a written cure plan acceptable to the City within
the ten (10) day time period, then the City shall have the right to terminate the contract by giving
written notice to Contractor specifying the effective date of such termination.
In addition to the remedy set forth above, the City retains the right to pursue any and all other
available remedies under law or in equity, including but without limitation, action against the
performance bond.
Where public interest or necessity demands the immediate termination of the contract to
safeguard life, health, or property, the City may terminate the contract immediately without prior
notice of deficiencies, and no opportunity to cure failures will be provided.
Termination for Convenience
City may terminate the contract at any time, and for any reason, by giving specific written notice
to the Contractor of such termination and specifying the effective date thereof, at least thirty (30)
days prior to the effective date of such termination. If the contract is terminated by City as
provided in this paragraph, Contractor shall be entitled to receive just and equitable
compensation for any satisfactory work completed. Contractor expressly agrees that no further
penalties, remedies, or consideration would be forthcoming in the event of termination for
convenience.
Interpretation of Agreement
The interpretation, validity and enforcement of any contract awarded shall be governed by and
construed under the laws of the State of California.
The Contractor shall be responsible for complying with any Local, State, and Federal laws
whether or not said laws are expressly stated or referred to herein.
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BID NUMBER B06-18/19 Page 21
Should any provision herein be found or deemed to be invalid, the contract shall be construed as
not containing such provision, and all other provisions that are otherwise lawful shall remain in
full force and effect, and to this end the provisions of the contract are severable.
Administrative Claims Requirement and Procedure
No suit shall be brought against the City arising out of a contract awarded, unless a claim has
first been presented in writing and filed with the City of Chula Vista and acted upon by the City
of Chula Vista in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista
Municipal Code, as same may from time to time be amended, the provisions of which are
incorporated by this reference as if fully set forth herein, and such policies and procedures used
by the City in the implementation of same.
Conflict Resolution
Upon request by the City, Contractor shall meet and confer in good faith with the City for the
purpose of resolving any dispute over contract terms and conditions.
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in
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?City of Chula Vista Agreement No.: 18083
Consultant Name: AZTEC LANDSCAPING, INC.
CITY OF CHULA VISTA
CONTRACTOR SERVICES AGREEMENT
WITH AZTEC LANDSCAPING, INC.
TO PROVIDE LANDSCAPE MAINTENANCE SERVICES
This Agreement is entered into effective as of October 1, 2018 by and between the City of Chula
Vista, a chartered municipal corporation (“City”) and AZTEC LANDSCAPING, INC., a
California corporation (“Contractor”), (collectively, the “Parties” and, individually, a “Party”)
with reference to the following facts:
RECITALS
WHEREAS the City administers and maintains 36 Open Space Districts, Maintenance
Community Facilities Districts, and their associated zones (collectively the “Districts”) and
levies an annual assessment on property owners within each district to provide funding for
maintenance of common area spaces; and
WHEREAS the City contracts with landscape firms to provide landscape maintenance
services for the Districts; and
WHEREAS the landscape maintenance contracts in 11 Districts are set to expire on
September 30, 2018, namely: Districts 7, 14; 15; 20 Zones 2, 3, 4, 5, and 6; 24; Village 6
McMillin; and Village 6 OR; and I-805 DAR West and Village 2 (New Development) are newly
acquired landscape maintenance areas; and
WHEREAS on July 27, 2018 City staff issued a Request for Proposals for landscape
maintenance services for common area spaces within the 13 Districts; and
WHEREAS in the Request for Proposal, the common area spaces within the 13 Districts
were placed into four Bid Groups; and
WHEREAS a pre-bid meeting was held on August 1, 2018 to review and clarify bid
requirements and to emphasize that the bids would be evaluated and contracts awarded by Bid
Group to the lowest most competent and qualified bidder for each Bid Group; and
WHEREAS on August 15, 2018 City staff received responsive bids for Bid Group 1
(District 20 Zones 4, 5, and 6) from two landscape maintenance companies which included Aztec
Landscaping, Inc.; and
WHEREAS after compilation of the bids staff determined Aztec Landscaping, Inc. to be
the lowest responsive bidder for Bid Group 1; and
WHEREAS staff recommended that the City Council accept the bids and award the
landscape maintenance contract for Bid Group 1 to Aztec Landscaping, Inc. for the 9-month
period of October 1, 2018 to June 30, 2019; and
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?City of Chula Vista Agreement No.: 18083
Consultant Name: AZTEC LANDSCAPING, INC.
WHEREAS the City Council accepted the bids and awarded the landscape maintenance
contract for Bid Group 1 to Aztec Landscaping, Inc. on September 25, 2018 for the 9-month
period of October 1, 2018 to June 30, 2019; and
WHEREAS the Contractor warrants and represents that it can deliver the services
required of Contractor to City in accordance with the time frames and the terms and conditions
of this Agreement.
[End of Recitals. Next Page Starts Obligatory Provisions.]
2018-09-25 Agenda Packet Page 55
?City of Chula Vista Agreement No.: 18083
Consultant Name: AZTEC LANDSCAPING, INC.
OBLIGATORY PROVISIONS
NOW, THEREFORE, in consideration of the above recitals, the covenants contained
herein, and other good and valuable considerations, the receipt and sufficiency of which the
Parties hereby acknowledge, City and Contractor hereby agree as follows:
1. SERVICES
1.0. Contract Documents. This Agreement consists of the following contract documents
(“Contract Documents”), all of which are incorporated into and made a part of this
Agreement as if set forth in full:
1.0.1. This Agreement and all exhibits hereto, and any change orders, amendments,
and supplemental agreements duly authorized and executed by authorized representatives of
the City and Contractor.
1.0.2. All permits for the Project.
1.0.3. The City of Chula Vista’s Standard Special Provisions, Standard Special
Provisions (“Greenbook”), Special Provisions, and Standard Plans.
1.0.4. All referenced specifications, plans, and materials.
1.0.5. The Project’s Notice to Bidders, Bid Requirements and Conditions, Bid Form,
Special Provisions – General, Special Provisions – Technical, Bid General Provisions, and
Open Space Landscape Maintenance Standards.
1.0.6. The successful bidder’s bid documents submitted in response to the request for
bid, and any post-bid documentation submitted prior to the award of the Project contract.
1.1. Required Services. Contractor agrees to perform the services, and deliver to City the
“Deliverables” (if any) described in the attached Exhibit A, incorporated into the Agreement
by this reference, within the time frames set forth therein, time being of the essence for this
Agreement. The services and/or Deliverables described in Exhibit A shall be referred to
herein as the “Required Services.”
1.2. Reductions in Scope of Work. City may independently, or upon request from
Contractor/Service Provider, from time to time, reduce the Required Services to be
performed by the Contractor/Service Provider under this Agreement. Upon doing so, City
and Contractor/Service Provider agree to meet and confer in good faith for the purpose of
negotiating a corresponding reduction in the compensation associated with the reduction.
1.3. Additional Services. Subject to compliance with the City’s Charter, codes, policies,
procedures and ordinances governing procurement and purchasing authority, City may
request Contractor/Service Provider provide additional services related to the Required
Services (“Additional Services”). If so, City and Contractor/Service Provider agree to meet
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?City of Chula Vista Agreement No.: 18083
Consultant Name: AZTEC LANDSCAPING, INC.
and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the
Additional Services. Unless otherwise agreed, compensation for the Additional Services shall
be charged and paid consistent with the rates and terms already provided therein. Once
added to Exhibit A, “Additional Services” shall also become “Required Services” for
purposes of this Agreement.
1.4. Standard of Care. Contractor expressly warrants and agrees that any and all hereunder
shall be performed in accordance with the highest standard of care exercised by members of
the profession currently practicing under similar conditions and in similar locations.
1.5. No Waiver of Standard of Care. Where approval by City is required, it is understood
to be conceptual approval only and does not relieve the Contractor of responsibility for
complying with all laws, codes, industry standards, and liability for damages caused by
negligent acts, errors, omissions, noncompliance with industry standards, or the willful
misconduct of the Contractor or its subcontractors.
1.6. Security for Performance. In the event that Exhibit A Section 4 indicates the need for
Contractor to provide additional security for performance of its duties under this Agreement,
Contractor shall provide such additional security prior to commencement of its Required
Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by
the City Attorney.
1.7. Compliance with Laws. In its performance of the Required Services, Contractor
shall comply with any and all applicable federal, state and local laws, including the Chula
Vista Municipal Code.
1.8. Business License. Prior to commencement of work, Contractor shall obtain a business
license from City.
1.9. Subcontractors. Prior to commencement of any work, Contractor shall submit for
City’s information and approval a list of any and all subcontractors to be used by Contractor
in the performance of the Required Services. Contractor agrees to take appropriate measures
necessary to ensure that all subcontractors and personnel utilized by the Contractor to
complete its obligations under this Agreement comply with all applicable laws, regulations,
ordinances, and policies, whether federal, state, or local. In addition, if any subcontractor is
expected to fulfill any responsibilities of the Contractor under this Agreement, Contractor
shall ensure that each and every subcontractor carries out the Contractor’s responsibilities as
set forth in this Agreement. The Contractor is fully responsible for the acts and omissions of
all subcontractors of every tier for the Project (as defined in Exhibit A), and for all persons
and entities either directly or indirectly employed by or under the control of any
subcontractor in the same manner and to the same extent that Contractor is responsible for
the acts and omissions of persons directly employed by it or under its control pursuant to this
Agreement.
1.9.1. Subcontract Indemnity. Contractor shall require all subcontracts for the Project
to obligate each subcontractor, with respect to the work to be performed under that
subcontract, to defend, indemnify, protect, and hold harmless the Indemnified Parties (as
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?City of Chula Vista Agreement No.: 18083
Consultant Name: AZTEC LANDSCAPING, INC.
defined in Section 4.1) in the same manner and to the same extent that Contractor is required
to defend, indemnify, protect, and hold harmless the Indemnified Parties under this
Agreement.
1.9.2. Subcontract Insurance. Contractor shall require all subcontracts for the Project
to obligate each subcontractor, with respect to the work to be performed under that
subcontract, to procure and maintain insurance in the same manner and to the same extent
that Contractor is required to procure and maintain insurance under the Agreement, including
without limitation naming the City, its officers, officials, employees, and volunteers as
additional insureds.
1.9.3. Subcontractor Licensure. Contractor shall require all subcontractors for the
Project to be appropriately licensed before commencing work for the Project, and to remain
licensed for the duration of their work performed under the subcontract. In the event that a
subcontractor is not properly licensed at any time during the Project, Contractor shall
immediately cease payment to that subcontractor and Contractor shall return to the City any
payment made to that subcontractor for work performed during the period for which the
subcontractor was not licensed.
1.9.4. Subcontractor Payments. Contractor shall pay its subcontractors for the Project
not later than seven (7) days after receipt of each progress payment received in accordance
with the provision in Section 7108.5 of the California Business and Professions Code. Any
delay or postponement of payment may take place only for good cause and with the City’s
prior written approval. Any violation of Section 7108.5 shall subject the violating Contractor
and its respective subcontractors to the penalties, sanctions, and other remedies of that
section.
1.10. Term. This Agreement shall commence on the earlier to occur of the Effective Date
or Contractor’s commencement of the Required Services hereunder, and shall terminate
when the Parties have complied with all their obligations hereunder; provided, however,
provisions which expressly survive termination shall remain in effect.
2. COMPENSATION
2.1. General. For satisfactory performance of the Required Services, City agrees to
compensate Contractor in the amount(s) and on the terms set forth in Exhibit A, Section 4.
Standard terms for billing and payment are set forth in this Section 2.
2.2. Detailed Invoicing. Contractor agrees to provide City with a detailed invoice for
services performed each month, within thirty (30) days of the end of the month in which the
services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on
the first of the month following the Effective Date of the Agreement. All charges must be
presented in a line item format with each task separately explained in reasonable detail. Each
invoice shall include the current monthly amount being billed, the amount invoiced to date,
and the remaining amount available under any approved budget. Contractor must obtain prior
written authorization from City for any fees or expenses that exceed the estimated budget.
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?City of Chula Vista Agreement No.: 18083
Consultant Name: AZTEC LANDSCAPING, INC.
2.3. Payment to Contractor. Upon receipt of a properly prepared invoice and confirmation
that the Required Services detailed in the invoice have been satisfactorily performed, City
shall pay Contractor for the invoice amount within thirty (30) days. Payment shall be made in
accordance with the terms and conditions set forth in Exhibit A and section 2.4, below. At
City’s discretion, invoices not timely submitted may be subject to a penalty of up to five
percent (5%) of the amount invoiced.
2.4. Retention Policy. City shall retain ten percent (10%) of the amount due for Required
Services detailed on each invoice (the “holdback amount”). Upon City review and
determination of Project Completion, the holdback amount will be issued to Contractor.
2.5. Reimbursement of Costs. City may reimburse Contractor’s out-of-pocket costs
incurred by Contractor in the performance of the Required Services if negotiated in advance
and included in Exhibit A. Unless specifically provided in Exhibit A, Contractor shall be
responsible for any and all out-of-pocket costs incurred by Contractor in the performance of
the Required Services.
2.6. Exclusions. City shall not be responsible for payment to Contractor for any fees or
costs in excess of any agreed upon budget, rate, or other maximum amount(s) provided for in
Exhibit A. City shall also not be responsible for any cost: (a) incurred prior to the Effective
Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful
misconduct of Contractor, its agents, employees, or subcontractors.
2.7. Payment Not Final Approval. Contractor understands and agrees that payment to the
Contractor or reimbursement for any Contractor costs related to the performance of Required
Services does not constitute a City final decision regarding whether such payment or cost
reimbursement is allowable and eligible for payment under this Agreement, nor does it
constitute a waiver of any violation by Contractor of the terms of this Agreement. If City
determines that Contractor is not entitled to receive any amount of compensation already
paid, City will notify Contractor in writing and Contractor shall promptly return such
amount.
3. INSURANCE
3.1. Required Insurance. Contractor must procure and maintain, during the period of
performance of Required Services under this Agreement, and for twelve months after
completion of Required Services, the policies of insurance described on the attached Exhibit
B, incorporated into the Agreement by this reference (the “Required Insurance”). The
Required Insurance shall also comply with all other terms of this Section.
3.2. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
relating to the Required Insurance must be disclosed to and approved by City in advance of
the commencement of work.
3.3. Standards for Insurers. Required Insurance must be placed with licensed insurers
admitted to transact business in the State of California with a current A.M. Best’s rating of A
2018-09-25 Agenda Packet Page 59
?City of Chula Vista Agreement No.: 18083
Consultant Name: AZTEC LANDSCAPING, INC.
V or better, or, if insurance is placed with a surplus lines insurer, insurer must be listed on the
State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best’s
rating of no less than A X. For Workers’ Compensation Insurance, insurance issued by the
State Compensation Fund is also acceptable.
3.4. Subcontractors. Contractor must include and/or require to be included all
subcontractors of every tier as insureds under its policies and/or furnish separate certificates
and endorsements demonstrating separate coverage for those not under its policies. Any
separate coverage for subcontractors of every tier must also comply with the terms of this
Agreement.
3.5. Additional Insureds. City, its officers, officials, employees, agents, and volunteers
must be named as additional insureds with respect to any policy of general liability,
automobile, or pollution insurance specified as required in Exhibit B or as may otherwise be
specified by City’s Risk Manager. The general liability additional insured coverage must be
provided in the form of an endorsement to the Contractor’s insurance using ISO CG 2010
(11/85) or its equivalent; such endorsement must not exclude Products/Completed Operations
coverage.
3.6. General Liability Coverage to be “Primary”. Contractor’s general liability coverage must
be primary insurance as it pertains to the City, its officers, officials, employees, agents, and
volunteers. Any insurance or self-insurance maintained by the City, its officers, officials,
employees, or volunteers is wholly separate from the insurance provided by Contractor and
in no way relieves Contractor from its responsibility to provide insurance.
3.7. No Cancellation. No Required Insurance policy may be canceled by either Party during
the required insured period under this Agreement, except after thirty days’ prior written
notice to the City by certified mail, return receipt requested. Prior to the effective date of any
such cancellation Contractor must procure and put into effect equivalent coverage(s).
3.8. Waiver of Subrogation. Contractor’s insurer(s) will provide a Waiver of Subrogation
in favor of the City for each Required Insurance policy under this Agreement. In addition,
Contractor waives any right it may have or may obtain to subrogation for a claim against
City.
3.9. Verification of Coverage. Prior to commencement of any work, Contractor shall
furnish City with original certificates of insurance and any amendatory endorsements
necessary to demonstrate to City that Contractor has obtained the Required Insurance in
compliance with the terms of this Agreement. The words “will endeavor” and “but failure to
mail such notice shall impose no obligation or liability of any kind upon the company, its
agents, or representatives” or any similar language must be deleted from all certificates. The
required certificates and endorsements should otherwise be on industry standard forms. The
City reserves the right to require, at any time, complete, certified copies of all required
insurance policies, including endorsements evidencing the coverage required by these
specifications.
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Consultant Name: AZTEC LANDSCAPING, INC.
3.10. Claims-Made Policy Requirements. If General Liability, Pollution and/or Asbestos
Pollution Liability and/or Errors & Omissions coverage are required and are provided on a
claims-made form, the following requirements also apply:
a. The “Retro Date” must be shown, and must be before the date of this Agreement
or the beginning of the work required by this Agreement.
b. Insurance must be maintained, and evidence of insurance must be provided, for at
least five (5) years after completion of the work required by this Agreement.
c. If coverage is canceled or non-renewed, and not replaced with another claims-
made policy form with a “Retro Date” prior to the effective date of this Agreement, the
Contractor/Service Provider must purchase “extended reporting” coverage for a minimum of
five (5) years after completion of the work required by this Agreement.
d. A copy of the claims reporting requirements must be submitted to the City for
review.
3.11. Not a Limitation of Other Obligations. Insurance provisions under this section shall
not be construed to limit the Contractor/Service Provider’s obligations under this Agreement,
including Indemnity.
3.12. Additional Coverage. To the extent that insurance coverage provided by Contractor
maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be
entitled to coverage for higher limits maintained.
4. INDEMNIFICATION
4.1. General. To the maximum extent allowed by law, Contractor shall protect, defend,
indemnify and hold harmless City, its elected and appointed officers, agents, employees and
volunteers (collectively, “Indemnified Parties”), from and against any and all claims,
demands, causes of action, costs, expenses, (including reasonable attorneys’ fees and court
costs), liability, loss, damage or injury, in law or equity, to property or persons, including
wrongful death, in any manner arising out of or incident to any alleged acts, omissions,
negligence, or willful misconduct of Contractor, its officials, officers, employees, agents, and
contractors, arising out of or in connection with the performance of the Required Services,
the results of such performance, or this Agreement. This indemnity provision does not
include any claims, damages, liability, costs and expenses arising from the sole negligence,
active negligence, or willful misconduct of the Indemnified Parties. Also covered is liability
arising from, connected with, caused by or claimed to be caused by the active or passive
negligent acts or omissions of the Indemnified Parties which may be in combination with the
active or passive negligent acts or omissions of the Contractor, its employees, agents or
officers, or any third party.
4.2. Modified Indemnity Where Agreement Involves Design Professional Services.
Notwithstanding the forgoing, if the services provided under this Agreement are design
professional services, as defined by California Civil Code section 2782.8, as may be
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amended from time to time, the defense and indemnity obligation under Section 1, above,
shall be limited to the extent required by California Civil Code section 2782.8.
4.3. Costs of Defense and Award. Included in Contractor’s obligations under this Section
4 is Contractor’s obligation to defend, at Contractor’s own cost, expense and risk, any and all
suits, actions or other legal proceedings that may be brought or instituted against one or more
of the Indemnified Parties. Subject to the limitations in this Section 4, Contractor shall pay
and satisfy any judgment, award or decree that may be rendered against one or more of the
Indemnified Parties for any and all related legal expenses and costs incurred by any of them.
4.4. Contractor/Service Provider’s Obligations Not Limited or Modified. Contractor’s
obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by
the Indemnified Parties, or by any prior or subsequent declaration by the Contractor.
Furthermore, Contractor’s obligations under this Section 4 shall in no way limit, modify or
excuse any of Contractor’s other obligations or duties under this Agreement.
4.5. Enforcement Costs. Contractor/Service Provider agrees to pay any and all costs City
incurs in enforcing Contractor’s obligations under this Section 4.
4.6. Survival. Contractor’s obligations under this Section 4 shall survive the termination
of this Agreement.
5.FINANCIAL INTERESTS OF CONTRACTOR/SERVICE PROVIDER.
5.1. Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of
Interest Code require certain government officials and Contractor performing work for
government agencies to publicly disclose certain of their personal assets and income using a
Statement of Economic Interests form (Form 700). In order to assure compliance with these
requirements, Contractor shall comply with the disclosure requirements identified in the
attached Exhibit C, incorporated into the Agreement by this reference.
5.2. Disclosures; Prohibited Interests. Independent of whether Contractor is required to file
a Form 700, Contractor warrants and represents that it has disclosed to City any economic
interests held by Contractor, or its employees or subcontractors who will be performing the
Required Services, in any real property or project which is the subject of this Agreement.
Contractor warrants and represents that it has not employed or retained any company or
person, other than a bona fide employee or approved subcontractor working solely for
Contractor, to solicit or secure this Agreement. Further, Contractor warrants and represents
that it has not paid or agreed to pay any company or person, other than a bona fide employee
or approved subcontractor working solely for Contractor, any fee, commission, percentage,
brokerage fee, gift or other consideration contingent upon or resulting from the award or
making of this Agreement. Contractor further warrants and represents that no officer or
employee of City has any interest, whether contractual, non-contractual, financial or
otherwise, in this transaction, the proceeds hereof, or in the business of Contractor/Service
Provider or Contractor’s subcontractors. Contractor further agrees to notify City in the event
any such interest is discovered whether or not such interest is prohibited by law or this
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Agreement. For breach or violation of any of these warranties, City shall have the right to
rescind this Agreement without liability.
6. REMEDIES
6.1. Termination for Cause. If for any reason whatsoever Contractor shall fail to perform
the Required Services under this Agreement in a proper or timely manner, or if Contractor
shall violate any of the other covenants, agreements or conditions of this Agreement (each a
“Default”), in addition to any and all other rights and remedies City may have under this
Agreement, at law or in equity, City shall have the right to terminate this Agreement by
giving five (5) days written notice to Contractor. Such notice shall identify the Default and
the Agreement termination date. If Contractor notifies City of its intent to cure such Default
prior to City’s specified termination date, and City agrees that the specified Default is
capable of being cured, City may grant Contractor up to ten (10) additional days after the
designated termination date to effectuate such cure. In the event of a termination under this
Section 6.1, Contractor shall immediately provide City any and all ”Work Product” (defined
in Section 7 below) prepared by Contractor as part of the Required Services. Such Work
Product shall be City’s sole and exclusive property as provided in Section 7 hereof.
Contractor may be entitled to compensation for work satisfactorily performed prior to
Contractor’s receipt of the Default notice; provided, however, in no event shall such
compensation exceed the amount that would have been payable under this Agreement for
such work, and any such compensation shall be reduced by any costs incurred or projected to
be incurred by City as a result of the Default.
6.2. Termination or Suspension for Convenience of City. City may suspend or terminate this
Agreement, or any portion of the Required Services, at any time and for any reason, with or
without cause, or for no reason by giving specific written notice to Contractor/Service
Provider of such termination or suspension at least fifteen (15) days prior to the effective date
thereof. Upon receipt of such notice, Contractor shall immediately cease all work under the
Agreement and promptly deliver all “Work Product” (defined in Section 7 below) to City.
Such Work Product shall be City's sole and exclusive property as provided in Section 7
hereof. Contractor shall be entitled to receive just and equitable compensation for this Work
Product in an amount equal to the amount due and payable under this Agreement for work
satisfactorily performed as of the date of the termination/suspension notice plus any
additional remaining Required Services requested or approved by City in advance that would
maximize City’s value under the Agreement.
6.3. Waiver of Claims. In the event City terminates the Agreement in accordance with the
terms of this Section, Contractor hereby expressly waives any and all claims for damages or
compensation as a result of such termination except as expressly provided in this Section 6.
6.4. Administrative Claims Requirements and Procedures. No suit or arbitration shall be
brought arising out of this Agreement against City unless a claim has first been presented in
writing and filed with City and acted upon by City in accordance with the procedures set
forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the
provisions of which, including such policies and procedures used by City in the
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implementation of same, are incorporated herein by this reference. Upon request by City,
Contractor shall meet and confer in good faith with City for the purpose of resolving any
dispute over the terms of this Agreement.
6.5. Governing Law/Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of California. Any action arising under or relating to
this Agreement shall be brought only in San Diego County, State of California.
6.6. Service of Process. Contractor agrees that it is subject to personal jurisdiction in
California. If Contractor/Service Provider is a foreign corporation, limited liability company,
or partnership that is not registered with the California Secretary of State, Contractor
irrevocably consents to service of process on Contractor/Service Provider by first class mail
directed to the individual and address listed under “For Legal Notice,” in section 1.B. of
Exhibit A to this Agreement, and that such service shall be effective five days after mailing.
7. OWNERSHIP AND USE OF WORK PRODUCT
All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems,
and any other materials or properties produced in whole or in part under this Agreement in
connection with the performance of the Required Services (collectively “Work Product”)
shall be the sole and exclusive property of City. No such Work Product shall be subject to
private use, copyrights, or patent rights by Contractor in the United States or in any other
country without the express, prior written consent of City. City shall have unrestricted
authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or
in part, any such Work Product, without requiring any permission of Contractor, except as
may be limited by the provisions of the Public Records Act or expressly prohibited by other
applicable laws. With respect to computer files containing data generated as Work Product,
Contractor shall make available to City, upon reasonable written request by City, the
necessary functional computer software and hardware for purposes of accessing, compiling,
transferring, and printing computer files.
8. GENERAL PROVISIONS
8.1. Reserved.
8.2. Assignment. City would not have entered into this Agreement but for Contractor’s
unique qualifications and traits. Contractor shall not assign any of its rights or responsibilities
under this Agreement, nor any part hereof, without City’s prior written consent, which City
may grant, condition, or deny in its sole discretion.
8.3. Authority. The person(s) executing this Agreement for Contractor warrants and
represents that they have the authority to execute same on behalf of Contractor and to bind
Contractor to its obligations hereunder without any further action or direction from
Contractor or any board, principal, or officer thereof.
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Consultant Name: AZTEC LANDSCAPING, INC.
8.4. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which shall constitute one Agreement after each Party has
signed such a counterpart.
8.5. Entire Agreement. This Agreement together with all exhibits attached hereto and
other agreements expressly referred to herein, constitutes the entire Agreement between the
Parties with respect to the subject matter contained herein. All exhibits referenced herein
shall be attached hereto and are incorporated herein by reference. All prior or
contemporaneous agreements, understandings, representations, warranties and statements,
oral or written, are superseded.
8.6. Record Retention. During the course of the Agreement and for three (3) years
following completion of the Required Services, Contractor agrees to maintain, intact and
readily accessible, all data, documents, reports, records, contracts, and supporting materials
relating to the performance of the Agreement, including accounting for costs and expenses
charged to City, including such records in the possession of subcontractors of every tier.
8.7. Further Assurances. The Parties agree to perform such further acts and to execute and
deliver such additional documents and instruments as may be reasonably required in order to
carry out the provisions of this Agreement and the intentions of the Parties.
8.8. Independent Contractor. Contractor is and shall at all times remain as to City a wholly
independent contractor. Neither City nor any of its officers, employees, agents, or volunteers
shall have control over the conduct of Contractor/Service Provider or any of Contractor’s
officers, employees, or agents (“Contractor Related Individuals”), except as set forth in this
Agreement. No Contractor Related Individuals shall be deemed employees of City, and none
of them shall be entitled to any benefits to which City employees are entitled, including but
not limited to overtime, retirement benefits, worker's compensation benefits, injury leave, or
other leave benefits. Furthermore, City will not withhold state or federal income tax, social
security tax or any other payroll tax with respect to any Contractor Related Individuals;
instead, Contractor/Service Provider shall be solely responsible for the payment of same and
shall hold the City harmless with respect to same. Contractor shall not at any time or in any
manner represent that it or any of its Contractor Related Individuals are employees or agents
of City. Contractor shall not incur or have the power to incur any debt, obligation, or liability
whatsoever against City, or bind City in any manner.
8.9. Notices. All notices, demands or requests provided for or permitted to be given pursuant
to this Agreement must be in writing. All notices, demands, and requests to be sent to any
Party shall be deemed to have been properly given or served if personally served or deposited
in the United States mail, addressed to such Party, postage prepaid, registered or certified,
with return receipt requested, at the addresses identified in this Agreement at the places of
business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in
writing.
8.10. No Waiver. The failure of City to insist, in any one or more instances, upon the
performance of any provision of the Agreement, or to exercise any right in the Agreement,
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shall not be construed as a waiver or relinquishment of such provisions or rights. Any waiver
of any breach of this Agreement shall not be held to be a waiver of any other or subsequent
breach. Any waiver issued by the City of any provision of the Agreement shall only be
effective if issued in writing by the City and shall be specific and apply only to the particular
matter concerned and not to other similar or dissimilar matters.
8.11. No Limitation. The duties and obligations imposed by this Agreement and the rights
and remedies available hereunder to the parties hereto, and, in particular but without
limitation, the warranties, guarantees, and obligations imposed upon the Agreement or by
this Agreement and all of the rights and remedies available to City thereunder, are in addition
to, and are not to be construed in any way as a limitation of, any rights and remedies imposed
or available by laws, regulations, or codes, by special warranty or guarantee or by other
provisions of the Contract Documents.
8.12. Severability. If any term or provision or portion of a term or provision of this
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.
(End of page. Next page is signature page.)
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Consultant Name: AZTEC LANDSCAPING, INC.
SIGNATURE PAGE
LANDSCAPE MAINTENANCE SERVICES AGREEMENT
IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and
Contractor agree that they have read and understood all terms and conditions of the Agreement,
that they fully agree and consent to be bound by same, and that they are freely entering into this
Agreement as of the Effective Date.
AZTEC LANDSCAPING, INC.CITY OF CHULA VISTA
BY:________________________________ BY: ________________________________
RAFAEL A. AGUILAR MARY CASILLAS SALAS
VICE PRESIDENT OF OPERATIONS MAYOR
ATTEST
BY:
________________________________
Kerry K. Bigelow, MMC
City Clerk
APPROVED AS TO FORM
BY:
________________________________
Glen R. Googins
City Attorney
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??City of Chula Vista Agreement No.: 18083
Consultant Name: AZTEC LANDSCAPING, INC.
EXHIBIT A
SCOPE OF WORK AND PAYMENT TERMS
1. Contact People for Contract Administration and Legal Notice
A. City Contract Administration:
Iracsema Quilantan
Director of Public Works
1800 Maxwell Road, Chula Vista, CA 91911
619-397-6066
IQuilantan@chulavistaca.gov
For Legal Notice Copy to:
City of Chula Vista
City Attorney
276 Fourth Avenue, Chula Vista, CA 91910
619-691-5037
CityAttorney@chulavistaca.gov
B. Contractor Contract Administration:
AZTEC LANDSCAPING, INC.
Rafael A. Aguilar, Vice President of Operations
7980 Lemon Grove Way, Lemon Grove, CA 91945
619-572-4016
rafael@azteclandscaping.com
For Legal Notice Copy to:
Rocio Alcala, Executive Administrative Assistant
7980 Lemon Grove Way, Lemon Grove, CA 91945
619-778-4682
ralcala@azteclandscaping.com
2. Required Services
A. General Description:
The Contractor will furnish all work, materials, equipment, services, and labor necessary to
fully complete landscape maintenance services of Chula Vista’s Open Space Bid Group 1
amended to exclude District 20 Zones 2 and 3 (the “Project”) in strict accordance with the
Contract Documents.
B. Detailed Description:
The Contractor will perform and complete landscape maintenance services, and all other
required services at various locations throughout the City’s Open Space at the unit prices
contained in Contractor’s submitted bid and this Agreement in strict accordance with the
Contract Documents.
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3. Term:In accordance with Section 1.10 of this Agreement, the term of this Agreement shall
begin October 1, 2018 and end on June 30, 2019 for completion of all Required Services.
4. Compensation:
*Disclosure:
Payment. As full compensation in consideration of completion of the Required Services in strict
accordance with the Contract Documents and in consideration of the fulfillment of all of the
Contractor’s obligations under the Contract Documents, the City shall pay the Contractor for the
quantity of line item of work actually performed in strict accordance with the Contract
Documents. The City’s obligation to pay the Contractor under this Agreement is subject to and
may be offset by charges that may apply to the Contractor under this Agreement.
5. Special Provisions:
Security for Performance: Contractor shall procure Performance and Labor and Material Bonds
for the Work that are to be issued by a Surety authorized to transact such business in the State of
California, be listed as approved by the United States Department of Treasury Circular 570, and
whose Underwriting Limitation is sufficient to issue bonds in the amount required by any
contract entered into pursuant to this Notice. Approved listing can be obtained through the
United States Department of Treasury’s website
www.fiscal.treasury.gov/fsreports/ref/suretyBnd/c570.htm. Any renewal certificates required
Section Item Code Description Unit of Measure Quantity
Aztec Landscaping,
Inc. - Unit Price
Aztec Landscaping,
Inc. - Line Total
Main Bid Grp 1 District 20 Zn 4 11.5 acres Code 1- 4.8 acres MONTHLY 9 $3,994.00 $35,946.00
Main Bid Grp 1 District 20 Zn 4 11.5 acres Code 2- 0 acres MONTHLY 9 $240.00 $2,160.00
Main Bid Grp 1 District 20 Zn 4 11.5 acres Code 3- 3.7 acres MONTHLY 9 $3,198.00 $28,782.00
Main Bid Grp 1 District 20 Zn 4 11.5 acres Code 4- 0 acres MONTHLY 9 $0.00 $0.00
Main Bid Grp 1 District 20 Zn 4 11.5 acres Code 5- 3 acres MONTHLY 9 $560.00 $5,040.00
Main Bid Grp 1 District 20 Zn 4 11.5 acres 30 TREE TRIMS MONTHLY 1 $5,100.00 $5,100.00
Main Bid Grp 1 District 20 Zn 4 11.5 acres FERTILIZER PER SCHEDULE 1 $1,259.00 $1,259.00
Total $78,287.00
Main Bid Grp 1 District 20 Zn 5 231.66 acres Code 1- 36.77 acres MONTHLY 9 $8,398.00 $75,582.00
Main Bid Grp 1 District 20 Zn 5 231.66 acres Code 2- 2.79 acres MONTHLY 9 $2,241.00 $20,169.00
Main Bid Grp 1 District 20 Zn 5 231.66 acres Code 3- 54.9 acres MONTHLY 9 $11,206.00 $100,854.00
Main Bid Grp 1 District 20 Zn 5 231.66 acres Code 4- 12.3 acres MONTHLY 9 $3,362.00 $30,258.00
Main Bid Grp 1 District 20 Zn 5 231.66 acres Code 5- 124.9 acres MONTHLY 9 $2,801.00 $25,209.00
Main Bid Grp 1 District 20 Zn 5 231.66 acres 100 Tree Trims ONE TIME 1 $17,000.00 $17,000.00
Main Bid Grp 1 District 20 Zn 5 231.66 acres FERTILIZER PER SCHEDULE 1 $14,372.00 $14,372.00
Total $283,444.00
Main Bid Grp 1 District 20 Zn 6 165.6 acres Code 1- 5.2 acres MONTHLY 9 $1,390.00 $12,510.00
Main Bid Grp 1 District 20 Zn 6 165.6 acres Code 2- 0 acres MONTHLY 9 $0.00 $0.00
Main Bid Grp 1 District 20 Zn 6 165.6 acres Code 3- 2 acres MONTHLY 9 $1,252.00 $11,268.00
Main Bid Grp 1 District 20 Zn 6 165.6 acres Code 4- 32.3 acres MONTHLY 9 $1,878.00 $16,902.00
Main Bid Grp 1 District 20 Zn 6 165.6 acres Code 5- 126.1 acres MONTHLY 9 $2,435.00 $21,915.00
Main Bid Grp 1 District 20 Zn 6 165.6 acres 50 Tree Trims ONE TIME 1 $8,500.00 $8,500.00
Main Bid Grp 1 District 20 Zn 6 165.6 acres FERTILIZER PER SCHEDULE 1 $1,056.00 $1,056.00
Total $72,151.00
Total Group 1 $433,882.00
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Consultant Name: AZTEC LANDSCAPING, INC.
during the course of the Agreement must be renewed and received by the City within fifteen (15)
days prior to expiration and must meet the same criteria. No substitutions shall be allowed.
DIR/Prevailing Wages. No Contractor or subcontractor shall be qualified to bid on, be listed in a
bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage
in the performance of any contract for public work, unless currently registered with the
Department of Industrial Relations (DIR) and qualified to perform public work pursuant to Labor
Code section 1725.5. No Contractor or subcontractor may be awarded a contract for public work
on a public works project unless registered with the DIR pursuant to Labor Code section 1725.5.
The Work is subject to compliance monitoring and enforcement by the Department of Industrial
Relations.
Contractor and its subcontractors are required by bid specifications and California Labor Code
sections 1771 and 1774 to pay prevailing wages ("Prevailing Wage Rates") to persons employed
by them for work in a covered work classification under this Agreement. In accordance with the
provisions of Section 1773 of the Labor Code of the State of California, the City has ascertained
the general prevailing wage scales are applicable to the work to be done. The prevailing wage
scales are those determined by the DIR. If Contractor intends to use a craft or classification not
shown on the general prevailing wage rates determinations, it may be required to pay the wage
rate of that craft or classification most closely related to it as shown in the general wage rates
determinations effective at the time of the call for bids.
Non-Collusion Affidavit. Prior to commencing the Project, Contractor shall provide a fully
executed and properly notarized Non-Collusion Affidavit, attached hereto and incorporated
herein as Exhibit D.
Workers’ Compensation Insurance Declaration. Prior to commencing the Project, Contractor
shall provide a fully executed and properly notarized Workers’ Compensation Insurance
Declaration, attached hereto and incorporated herein as Exhibit E.
OPTIONAL (check if applicable):
⾙ Permitted Sub-Contractor/Service Providers: “None”
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Consultant Name: AZTEC LANDSCAPING, INC.
EXHIBIT B
INSURANCE REQUIREMENTS
Contractor shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to
provide the following types and minimum amounts of insurance, as indicated by checking the
applicable boxes (x):
Type of Insurance Minimum Amount Form
⾙ General Liability:
Including products and
completed operations,
personal and
advertising injury
$2,000,000 per occurrence for
bodily injury, personal injury
(including death), and property
damage. If Commercial General
Liability insurance with a general
aggregate limit is used, either the
general aggregate limit must apply
separately to this Agreement or the
general aggregate limit must be
twice the required occurrence limit
Additional Insured Endorsement
or Blanket AI Endorsement for
City*
Waiver of Recovery Endorsement
Insurance Services Office Form
CG 00 01
*Must be primary and must not
exclude Products/Completed
Operations
⾙ Automobile Liability $1,000,000 per accident for bodily
injury, including death, and
property damage
Insurance Services Office Form
CA 00 01
Code 1-Any Auto
Code 8-Hired
Code 9-Non Owned
⾙ Workers’
Compensation
Employer’s Liability
$1,000,000 each accident
$1,000,000 disease policy limit
$1,000,000 disease each employee
Waiver of Recovery Endorsement
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Consultant Name: AZTEC LANDSCAPING, INC.
EXHIBIT C
CONTRACTOR CONFLICT OF INTEREST DESIGNATION
The Political Reform Act1 and the Chula Vista Conflict of Interest Code2 (“Code”) require designated state and local government officials, including some Contractor/Service Providers, to
make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, Contractors designated to file the Form 700 are also required to comply with certain ethics training requirements.3
⾙ A. Contractor IS a corporation or limited liability company and is therefore EXCLUDED4
from disclosure.
☐ B. Contractor is NOT a corporation or limited liability company and disclosure designation is
as follows:
APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE
SERVICES
(Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-
interest-code.)
Name Email Address Applicable Designation
☐A. Full Disclosure
☐B. Limited Disclosure (select one or
more of the categories under which the
Contractor shall file):
☐1. ☐2. ☐3. ☐4. ☐5. ☐6. ☐7.
Justification:
☐C. Excluded from Disclosure
1.Required FilersEach individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Contractor/Service Provider,” pursuant to FPPC Regulation 18700.3, must file a Form 700.
2.Required Filing DeadlinesEach initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement.
3. Filing Designation
1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704.
2 Chula Vista Municipal Code §§2.02.010-2.02.040.
3 Cal. Gov. Code §§53234, et seq.
4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4
th
261; FPPC Reg. 18700.3 (Consultant defined as an “individual” who participates in making a governmental
decision; “individual” does not include corporation or limited liability company).
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??City of Chula Vista Agreement No.: 18083
Consultant Name: AZTEC LANDSCAPING, INC.
The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Contractor/Service Provider will provide. Notwithstanding this designation or anything in the Agreement, the Contractor/Service Provider is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619) 691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2.
Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the
written determination of the Contractor’s requirement to comply with the disclosure requirements set forth in
the Code.
Completed by: Sam Oludunfe, Open Space Manager
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??City of Chula Vista Agreement No.: 18083
Consultant Name: AZTEC LANDSCAPING, INC.
EXHIBIT D
NON-COLLUSION AFFIDAVIT
To the City of Chula Vista, Director of Engineering & Capital Projects:
The undersigned, in submitting a bid for performing the following work by Contract being duly sworn,
deposes and says:
That he/she has not, either directly or indirectly entered into any agreement, participated in any collusion,
or otherwise taken any action in restraint of free competitive bidding and has not accepted any deposit
from any subcontractor or material supplier through any bid depository, the by-laws, rules, and
regulations of which prohibit or prevent the Contractor from considering any bid from any subcontractor
or material supplier, which is not processed through said bid depository, or which prevent any
subcontractor or material supplier from bidding to any Contractor who does not use the facilities or accept
bids from or through such bid depository in connection with this Contract.
_____________________________________
Business Address Company
_____________________________________
Place of Residence Signature of Bidder
(Attach Proper Notarization)
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??City of Chula Vista Agreement No.: 18083
Consultant Name: AZTEC LANDSCAPING, INC.
EXHIBIT E
WORKERS’ COMPENSATION INSURANCE DECLARATION
Date:________________________
I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be
insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the
provisions of that code, and I will comply with such provisions before commencing the performance of
the work of this Contract.
_____________________________
Signature
_____________________________
Contractor
_____________________________
State Contractor's License No.
_____________________________
Address
_____________________________
City/State
_____________________________
Phone Number
(Attach Proper Notarization)
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?City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
CITY OF CHULA VISTA
CONTRACTOR SERVICES AGREEMENT
WITH AZTEC LANDSCAPING, INC.
TO PROVIDE LANDSCAPE MAINTENANCE SERVICES
This Agreement is entered into effective as of October 1, 2018 by and between the City of Chula
Vista, a chartered municipal corporation (“City”) and AZTEC LANDSCAPING, INC., a
California corporation (“Contractor”), (collectively, the “Parties” and, individually, a “Party”)
with reference to the following facts:
RECITALS
WHEREAS the City administers and maintains 36 Open Space Districts, Maintenance
Community Facilities Districts, and their associated zones (collectively the “Districts”) and
levies an annual assessment on property owners within each district to provide funding for
maintenance of common area spaces; and
WHEREAS the City contracts with landscape firms to provide landscape maintenance
services for the Districts; and
WHEREAS the landscape maintenance contracts in 11 Districts are set to expire on
September 30, 2018, namely: Districts 7, 14; 15; 20 Zones 2, 3, 4, 5, and 6; 24; Village 6
McMillin; and Village 6 OR; and I-805 DAR West and Village 2 (New Development) are newly
acquired landscape maintenance areas; and
WHEREAS on July 27, 2018 City staff issued a Request for Proposals for landscape
maintenance services for common area spaces within the 13 Districts; and
WHEREAS in the Request for Proposal, the common area spaces within the 13 Districts
were placed into four Bid Groups; and
WHEREAS a pre-bid meeting was held on August 1, 2018 to review and clarify bid
requirements and to emphasize that the bids would be evaluated and contracts awarded by Bid
Group to the lowest most competent and qualified bidder for each Bid Group; and
WHEREAS on August 15, 2018 City staff received responsive bids for Bid Group 2
(Districts 14, 15, and 24) from two landscape maintenance companies which included Aztec
Landscaping, Inc.; and
WHEREAS after compilation of the bids staff determined Aztec Landscaping, Inc. to be
the lowest responsive bidder for Bid Group 2; and
WHEREAS staff recommended that the City Council accept the bids and award the
landscape maintenance contract for Bid Group 2 to Aztec Landscaping, Inc. for the 9-month
period of October 1, 2018 to June 30, 2019, excepting District 24 which will be serviced for the
8-month period of November 1, 2018 to June 30, 2019; and
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?City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
WHEREAS the City Council accepted the bids and awarded the landscape maintenance
contract for Bid Group 2 to Aztec Landscaping, Inc. on September 25, 2018; and
WHEREAS the Contractor warrants and represents that it can deliver the services
required of Contractor to City in accordance with the time frames and the terms and conditions
of this Agreement.
[End of Recitals. Next Page Starts Obligatory Provisions.]
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?City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
OBLIGATORY PROVISIONS
NOW, THEREFORE, in consideration of the above recitals, the covenants contained
herein, and other good and valuable considerations, the receipt and sufficiency of which the
Parties hereby acknowledge, City and Contractor hereby agree as follows:
1. SERVICES
1.0. Contract Documents. This Agreement consists of the following contract documents
(“Contract Documents”), all of which are incorporated into and made a part of this
Agreement as if set forth in full:
1.0.1. This Agreement and all exhibits hereto, and any change orders, amendments,
and supplemental agreements duly authorized and executed by authorized representatives of
the City and Contractor.
1.0.2. All permits for the Project.
1.0.3. The City of Chula Vista’s Standard Special Provisions, Standard Special
Provisions (“Greenbook”), Special Provisions, and Standard Plans.
1.0.4. All referenced specifications, plans, and materials.
1.0.5. The Project’s Notice to Bidders, Bid Requirements and Conditions, Bid Form,
Special Provisions – General, Special Provisions – Technical, Bid General Provisions, and
Open Space Landscape Maintenance Standards.
1.0.6. The successful bidder’s bid documents submitted in response to the request for
bid, and any post-bid documentation submitted prior to the award of the Project contract.
1.1. Required Services. Contractor agrees to perform the services, and deliver to City the
“Deliverables” (if any) described in the attached Exhibit A, incorporated into the Agreement
by this reference, within the time frames set forth therein, time being of the essence for this
Agreement. The services and/or Deliverables described in Exhibit A shall be referred to
herein as the “Required Services.”
1.2. Reductions in Scope of Work. City may independently, or upon request from
Contractor/Service Provider, from time to time, reduce the Required Services to be
performed by the Contractor/Service Provider under this Agreement. Upon doing so, City
and Contractor/Service Provider agree to meet and confer in good faith for the purpose of
negotiating a corresponding reduction in the compensation associated with the reduction.
1.3. Additional Services. Subject to compliance with the City’s Charter, codes, policies,
procedures and ordinances governing procurement and purchasing authority, City may
request Contractor/Service Provider provide additional services related to the Required
Services (“Additional Services”). If so, City and Contractor/Service Provider agree to meet
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?City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the
Additional Services. Unless otherwise agreed, compensation for the Additional Services shall
be charged and paid consistent with the rates and terms already provided therein. Once
added to Exhibit A, “Additional Services” shall also become “Required Services” for
purposes of this Agreement.
1.4. Standard of Care. Contractor expressly warrants and agrees that any and all hereunder
shall be performed in accordance with the highest standard of care exercised by members of
the profession currently practicing under similar conditions and in similar locations.
1.5. No Waiver of Standard of Care. Where approval by City is required, it is understood
to be conceptual approval only and does not relieve the Contractor of responsibility for
complying with all laws, codes, industry standards, and liability for damages caused by
negligent acts, errors, omissions, noncompliance with industry standards, or the willful
misconduct of the Contractor or its subcontractors.
1.6. Security for Performance. In the event that Exhibit A Section 4 indicates the need for
Contractor to provide additional security for performance of its duties under this Agreement,
Contractor shall provide such additional security prior to commencement of its Required
Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by
the City Attorney.
1.7. Compliance with Laws. In its performance of the Required Services, Contractor
shall comply with any and all applicable federal, state and local laws, including the Chula
Vista Municipal Code.
1.8. Business License. Prior to commencement of work, Contractor shall obtain a business
license from City.
1.9. Subcontractors. Prior to commencement of any work, Contractor shall submit for
City’s information and approval a list of any and all subcontractors to be used by Contractor
in the performance of the Required Services. Contractor agrees to take appropriate measures
necessary to ensure that all subcontractors and personnel utilized by the Contractor to
complete its obligations under this Agreement comply with all applicable laws, regulations,
ordinances, and policies, whether federal, state, or local. In addition, if any subcontractor is
expected to fulfill any responsibilities of the Contractor under this Agreement, Contractor
shall ensure that each and every subcontractor carries out the Contractor’s responsibilities as
set forth in this Agreement. The Contractor is fully responsible for the acts and omissions of
all subcontractors of every tier for the Project (as defined in Exhibit A), and for all persons
and entities either directly or indirectly employed by or under the control of any
subcontractor in the same manner and to the same extent that Contractor is responsible for
the acts and omissions of persons directly employed by it or under its control pursuant to this
Agreement.
1.9.1. Subcontract Indemnity. Contractor shall require all subcontracts for the Project
to obligate each subcontractor, with respect to the work to be performed under that
subcontract, to defend, indemnify, protect, and hold harmless the Indemnified Parties (as
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?City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
defined in Section 4.1) in the same manner and to the same extent that Contractor is required
to defend, indemnify, protect, and hold harmless the Indemnified Parties under this
Agreement.
1.9.2. Subcontract Insurance. Contractor shall require all subcontracts for the Project
to obligate each subcontractor, with respect to the work to be performed under that
subcontract, to procure and maintain insurance in the same manner and to the same extent
that Contractor is required to procure and maintain insurance under the Agreement, including
without limitation naming the City, its officers, officials, employees, and volunteers as
additional insureds.
1.9.3. Subcontractor Licensure. Contractor shall require all subcontractors for the
Project to be appropriately licensed before commencing work for the Project, and to remain
licensed for the duration of their work performed under the subcontract. In the event that a
subcontractor is not properly licensed at any time during the Project, Contractor shall
immediately cease payment to that subcontractor and Contractor shall return to the City any
payment made to that subcontractor for work performed during the period for which the
subcontractor was not licensed.
1.9.4. Subcontractor Payments. Contractor shall pay its subcontractors for the Project
not later than seven (7) days after receipt of each progress payment received in accordance
with the provision in Section 7108.5 of the California Business and Professions Code. Any
delay or postponement of payment may take place only for good cause and with the City’s
prior written approval. Any violation of Section 7108.5 shall subject the violating Contractor
and its respective subcontractors to the penalties, sanctions, and other remedies of that
section.
1.10. Term. This Agreement shall commence on the earlier to occur of the Effective Date
or Contractor’s commencement of the Required Services hereunder, and shall terminate
when the Parties have complied with all their obligations hereunder; provided, however,
provisions which expressly survive termination shall remain in effect.
2. COMPENSATION
2.1. General. For satisfactory performance of the Required Services, City agrees to
compensate Contractor in the amount(s) and on the terms set forth in Exhibit A, Section 4.
Standard terms for billing and payment are set forth in this Section 2.
2.2. Detailed Invoicing. Contractor agrees to provide City with a detailed invoice for
services performed each month, within thirty (30) days of the end of the month in which the
services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on
the first of the month following the Effective Date of the Agreement. All charges must be
presented in a line item format with each task separately explained in reasonable detail. Each
invoice shall include the current monthly amount being billed, the amount invoiced to date,
and the remaining amount available under any approved budget. Contractor must obtain prior
written authorization from City for any fees or expenses that exceed the estimated budget.
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?City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
2.3. Payment to Contractor. Upon receipt of a properly prepared invoice and confirmation
that the Required Services detailed in the invoice have been satisfactorily performed, City
shall pay Contractor for the invoice amount within thirty (30) days. Payment shall be made in
accordance with the terms and conditions set forth in Exhibit A and section 2.4, below. At
City’s discretion, invoices not timely submitted may be subject to a penalty of up to five
percent (5%) of the amount invoiced.
2.4. Retention Policy. City shall retain ten percent (10%) of the amount due for Required
Services detailed on each invoice (the “holdback amount”). Upon City review and
determination of Project Completion, the holdback amount will be issued to Contractor.
2.5. Reimbursement of Costs. City may reimburse Contractor’s out-of-pocket costs
incurred by Contractor in the performance of the Required Services if negotiated in advance
and included in Exhibit A. Unless specifically provided in Exhibit A, Contractor shall be
responsible for any and all out-of-pocket costs incurred by Contractor in the performance of
the Required Services.
2.6. Exclusions. City shall not be responsible for payment to Contractor for any fees or
costs in excess of any agreed upon budget, rate, or other maximum amount(s) provided for in
Exhibit A. City shall also not be responsible for any cost: (a) incurred prior to the Effective
Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful
misconduct of Contractor, its agents, employees, or subcontractors.
2.7. Payment Not Final Approval. Contractor understands and agrees that payment to the
Contractor or reimbursement for any Contractor costs related to the performance of Required
Services does not constitute a City final decision regarding whether such payment or cost
reimbursement is allowable and eligible for payment under this Agreement, nor does it
constitute a waiver of any violation by Contractor of the terms of this Agreement. If City
determines that Contractor is not entitled to receive any amount of compensation already
paid, City will notify Contractor in writing and Contractor shall promptly return such
amount.
3. INSURANCE
3.1. Required Insurance. Contractor must procure and maintain, during the period of
performance of Required Services under this Agreement, and for twelve months after
completion of Required Services, the policies of insurance described on the attached Exhibit
B, incorporated into the Agreement by this reference (the “Required Insurance”). The
Required Insurance shall also comply with all other terms of this Section.
3.2. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions
relating to the Required Insurance must be disclosed to and approved by City in advance of
the commencement of work.
3.3. Standards for Insurers. Required Insurance must be placed with licensed insurers
admitted to transact business in the State of California with a current A.M. Best’s rating of A
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?City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
V or better, or, if insurance is placed with a surplus lines insurer, insurer must be listed on the
State of California List of Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best’s
rating of no less than A X. For Workers’ Compensation Insurance, insurance issued by the
State Compensation Fund is also acceptable.
3.4. Subcontractors. Contractor must include and/or require to be included all
subcontractors of every tier as insureds under its policies and/or furnish separate certificates
and endorsements demonstrating separate coverage for those not under its policies. Any
separate coverage for subcontractors of every tier must also comply with the terms of this
Agreement.
3.5. Additional Insureds. City, its officers, officials, employees, agents, and volunteers
must be named as additional insureds with respect to any policy of general liability,
automobile, or pollution insurance specified as required in Exhibit B or as may otherwise be
specified by City’s Risk Manager. The general liability additional insured coverage must be
provided in the form of an endorsement to the Contractor’s insurance using ISO CG 2010
(11/85) or its equivalent; such endorsement must not exclude Products/Completed Operations
coverage.
3.6. General Liability Coverage to be “Primary”. Contractor’s general liability coverage must
be primary insurance as it pertains to the City, its officers, officials, employees, agents, and
volunteers. Any insurance or self-insurance maintained by the City, its officers, officials,
employees, or volunteers is wholly separate from the insurance provided by Contractor and
in no way relieves Contractor from its responsibility to provide insurance.
3.7. No Cancellation. No Required Insurance policy may be canceled by either Party during
the required insured period under this Agreement, except after thirty days’ prior written
notice to the City by certified mail, return receipt requested. Prior to the effective date of any
such cancellation Contractor must procure and put into effect equivalent coverage(s).
3.8. Waiver of Subrogation. Contractor’s insurer(s) will provide a Waiver of Subrogation
in favor of the City for each Required Insurance policy under this Agreement. In addition,
Contractor waives any right it may have or may obtain to subrogation for a claim against
City.
3.9. Verification of Coverage. Prior to commencement of any work, Contractor shall
furnish City with original certificates of insurance and any amendatory endorsements
necessary to demonstrate to City that Contractor has obtained the Required Insurance in
compliance with the terms of this Agreement. The words “will endeavor” and “but failure to
mail such notice shall impose no obligation or liability of any kind upon the company, its
agents, or representatives” or any similar language must be deleted from all certificates. The
required certificates and endorsements should otherwise be on industry standard forms. The
City reserves the right to require, at any time, complete, certified copies of all required
insurance policies, including endorsements evidencing the coverage required by these
specifications.
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?City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
3.10. Claims-Made Policy Requirements. If General Liability, Pollution and/or Asbestos
Pollution Liability and/or Errors & Omissions coverage are required and are provided on a
claims-made form, the following requirements also apply:
a. The “Retro Date” must be shown, and must be before the date of this Agreement
or the beginning of the work required by this Agreement.
b. Insurance must be maintained, and evidence of insurance must be provided, for at
least five (5) years after completion of the work required by this Agreement.
c. If coverage is canceled or non-renewed, and not replaced with another claims-
made policy form with a “Retro Date” prior to the effective date of this Agreement, the
Contractor/Service Provider must purchase “extended reporting” coverage for a minimum of
five (5) years after completion of the work required by this Agreement.
d. A copy of the claims reporting requirements must be submitted to the City for
review.
3.11. Not a Limitation of Other Obligations. Insurance provisions under this section shall
not be construed to limit the Contractor/Service Provider’s obligations under this Agreement,
including Indemnity.
3.12. Additional Coverage. To the extent that insurance coverage provided by Contractor
maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be
entitled to coverage for higher limits maintained.
4. INDEMNIFICATION
4.1. General. To the maximum extent allowed by law, Contractor shall protect, defend,
indemnify and hold harmless City, its elected and appointed officers, agents, employees and
volunteers (collectively, “Indemnified Parties”), from and against any and all claims,
demands, causes of action, costs, expenses, (including reasonable attorneys’ fees and court
costs), liability, loss, damage or injury, in law or equity, to property or persons, including
wrongful death, in any manner arising out of or incident to any alleged acts, omissions,
negligence, or willful misconduct of Contractor, its officials, officers, employees, agents, and
contractors, arising out of or in connection with the performance of the Required Services,
the results of such performance, or this Agreement. This indemnity provision does not
include any claims, damages, liability, costs and expenses arising from the sole negligence,
active negligence, or willful misconduct of the Indemnified Parties. Also covered is liability
arising from, connected with, caused by or claimed to be caused by the active or passive
negligent acts or omissions of the Indemnified Parties which may be in combination with the
active or passive negligent acts or omissions of the Contractor, its employees, agents or
officers, or any third party.
4.2. Modified Indemnity Where Agreement Involves Design Professional Services.
Notwithstanding the forgoing, if the services provided under this Agreement are design
professional services, as defined by California Civil Code section 2782.8, as may be
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?City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
amended from time to time, the defense and indemnity obligation under Section 1, above,
shall be limited to the extent required by California Civil Code section 2782.8.
4.3. Costs of Defense and Award. Included in Contractor’s obligations under this Section
4 is Contractor’s obligation to defend, at Contractor’s own cost, expense and risk, any and all
suits, actions or other legal proceedings that may be brought or instituted against one or more
of the Indemnified Parties. Subject to the limitations in this Section 4, Contractor shall pay
and satisfy any judgment, award or decree that may be rendered against one or more of the
Indemnified Parties for any and all related legal expenses and costs incurred by any of them.
4.4. Contractor/Service Provider’s Obligations Not Limited or Modified. Contractor’s
obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by
the Indemnified Parties, or by any prior or subsequent declaration by the Contractor.
Furthermore, Contractor’s obligations under this Section 4 shall in no way limit, modify or
excuse any of Contractor’s other obligations or duties under this Agreement.
4.5. Enforcement Costs. Contractor/Service Provider agrees to pay any and all costs City
incurs in enforcing Contractor’s obligations under this Section 4.
4.6. Survival. Contractor’s obligations under this Section 4 shall survive the termination
of this Agreement.
5.FINANCIAL INTERESTS OF CONTRACTOR/SERVICE PROVIDER.
5.1. Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of
Interest Code require certain government officials and Contractor performing work for
government agencies to publicly disclose certain of their personal assets and income using a
Statement of Economic Interests form (Form 700). In order to assure compliance with these
requirements, Contractor shall comply with the disclosure requirements identified in the
attached Exhibit C, incorporated into the Agreement by this reference.
5.2. Disclosures; Prohibited Interests. Independent of whether Contractor is required to file
a Form 700, Contractor warrants and represents that it has disclosed to City any economic
interests held by Contractor, or its employees or subcontractors who will be performing the
Required Services, in any real property or project which is the subject of this Agreement.
Contractor warrants and represents that it has not employed or retained any company or
person, other than a bona fide employee or approved subcontractor working solely for
Contractor, to solicit or secure this Agreement. Further, Contractor warrants and represents
that it has not paid or agreed to pay any company or person, other than a bona fide employee
or approved subcontractor working solely for Contractor, any fee, commission, percentage,
brokerage fee, gift or other consideration contingent upon or resulting from the award or
making of this Agreement. Contractor further warrants and represents that no officer or
employee of City has any interest, whether contractual, non-contractual, financial or
otherwise, in this transaction, the proceeds hereof, or in the business of Contractor/Service
Provider or Contractor’s subcontractors. Contractor further agrees to notify City in the event
any such interest is discovered whether or not such interest is prohibited by law or this
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Agreement. For breach or violation of any of these warranties, City shall have the right to
rescind this Agreement without liability.
6. REMEDIES
6.1. Termination for Cause. If for any reason whatsoever Contractor shall fail to perform
the Required Services under this Agreement in a proper or timely manner, or if Contractor
shall violate any of the other covenants, agreements or conditions of this Agreement (each a
“Default”), in addition to any and all other rights and remedies City may have under this
Agreement, at law or in equity, City shall have the right to terminate this Agreement by
giving five (5) days written notice to Contractor. Such notice shall identify the Default and
the Agreement termination date. If Contractor notifies City of its intent to cure such Default
prior to City’s specified termination date, and City agrees that the specified Default is
capable of being cured, City may grant Contractor up to ten (10) additional days after the
designated termination date to effectuate such cure. In the event of a termination under this
Section 6.1, Contractor shall immediately provide City any and all ”Work Product” (defined
in Section 7 below) prepared by Contractor as part of the Required Services. Such Work
Product shall be City’s sole and exclusive property as provided in Section 7 hereof.
Contractor may be entitled to compensation for work satisfactorily performed prior to
Contractor’s receipt of the Default notice; provided, however, in no event shall such
compensation exceed the amount that would have been payable under this Agreement for
such work, and any such compensation shall be reduced by any costs incurred or projected to
be incurred by City as a result of the Default.
6.2. Termination or Suspension for Convenience of City. City may suspend or terminate this
Agreement, or any portion of the Required Services, at any time and for any reason, with or
without cause, or for no reason by giving specific written notice to Contractor/Service
Provider of such termination or suspension at least fifteen (15) days prior to the effective date
thereof. Upon receipt of such notice, Contractor shall immediately cease all work under the
Agreement and promptly deliver all “Work Product” (defined in Section 7 below) to City.
Such Work Product shall be City's sole and exclusive property as provided in Section 7
hereof. Contractor shall be entitled to receive just and equitable compensation for this Work
Product in an amount equal to the amount due and payable under this Agreement for work
satisfactorily performed as of the date of the termination/suspension notice plus any
additional remaining Required Services requested or approved by City in advance that would
maximize City’s value under the Agreement.
6.3. Waiver of Claims. In the event City terminates the Agreement in accordance with the
terms of this Section, Contractor hereby expressly waives any and all claims for damages or
compensation as a result of such termination except as expressly provided in this Section 6.
6.4. Administrative Claims Requirements and Procedures. No suit or arbitration shall be
brought arising out of this Agreement against City unless a claim has first been presented in
writing and filed with City and acted upon by City in accordance with the procedures set
forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the
provisions of which, including such policies and procedures used by City in the
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implementation of same, are incorporated herein by this reference. Upon request by City,
Contractor shall meet and confer in good faith with City for the purpose of resolving any
dispute over the terms of this Agreement.
6.5. Governing Law/Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of California. Any action arising under or relating to
this Agreement shall be brought only in San Diego County, State of California.
6.6. Service of Process. Contractor agrees that it is subject to personal jurisdiction in
California. If Contractor/Service Provider is a foreign corporation, limited liability company,
or partnership that is not registered with the California Secretary of State, Contractor
irrevocably consents to service of process on Contractor/Service Provider by first class mail
directed to the individual and address listed under “For Legal Notice,” in section 1.B. of
Exhibit A to this Agreement, and that such service shall be effective five days after mailing.
7. OWNERSHIP AND USE OF WORK PRODUCT
All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems,
and any other materials or properties produced in whole or in part under this Agreement in
connection with the performance of the Required Services (collectively “Work Product”)
shall be the sole and exclusive property of City. No such Work Product shall be subject to
private use, copyrights, or patent rights by Contractor in the United States or in any other
country without the express, prior written consent of City. City shall have unrestricted
authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or
in part, any such Work Product, without requiring any permission of Contractor, except as
may be limited by the provisions of the Public Records Act or expressly prohibited by other
applicable laws. With respect to computer files containing data generated as Work Product,
Contractor shall make available to City, upon reasonable written request by City, the
necessary functional computer software and hardware for purposes of accessing, compiling,
transferring, and printing computer files.
8. GENERAL PROVISIONS
8.1. Reserved.
8.2. Assignment. City would not have entered into this Agreement but for Contractor’s
unique qualifications and traits. Contractor shall not assign any of its rights or responsibilities
under this Agreement, nor any part hereof, without City’s prior written consent, which City
may grant, condition, or deny in its sole discretion.
8.3. Authority. The person(s) executing this Agreement for Contractor warrants and
represents that they have the authority to execute same on behalf of Contractor and to bind
Contractor to its obligations hereunder without any further action or direction from
Contractor or any board, principal, or officer thereof.
2018-09-25 Agenda Packet Page 86
??City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
8.4. Counterparts. This Agreement may be executed in counterparts, each of which shall
be deemed an original, but all of which shall constitute one Agreement after each Party has
signed such a counterpart.
8.5. Entire Agreement. This Agreement together with all exhibits attached hereto and
other agreements expressly referred to herein, constitutes the entire Agreement between the
Parties with respect to the subject matter contained herein. All exhibits referenced herein
shall be attached hereto and are incorporated herein by reference. All prior or
contemporaneous agreements, understandings, representations, warranties and statements,
oral or written, are superseded.
8.6. Record Retention. During the course of the Agreement and for three (3) years
following completion of the Required Services, Contractor agrees to maintain, intact and
readily accessible, all data, documents, reports, records, contracts, and supporting materials
relating to the performance of the Agreement, including accounting for costs and expenses
charged to City, including such records in the possession of subcontractors of every tier.
8.7. Further Assurances. The Parties agree to perform such further acts and to execute and
deliver such additional documents and instruments as may be reasonably required in order to
carry out the provisions of this Agreement and the intentions of the Parties.
8.8. Independent Contractor. Contractor is and shall at all times remain as to City a wholly
independent contractor. Neither City nor any of its officers, employees, agents, or volunteers
shall have control over the conduct of Contractor/Service Provider or any of Contractor’s
officers, employees, or agents (“Contractor Related Individuals”), except as set forth in this
Agreement. No Contractor Related Individuals shall be deemed employees of City, and none
of them shall be entitled to any benefits to which City employees are entitled, including but
not limited to overtime, retirement benefits, worker's compensation benefits, injury leave, or
other leave benefits. Furthermore, City will not withhold state or federal income tax, social
security tax or any other payroll tax with respect to any Contractor Related Individuals;
instead, Contractor/Service Provider shall be solely responsible for the payment of same and
shall hold the City harmless with respect to same. Contractor shall not at any time or in any
manner represent that it or any of its Contractor Related Individuals are employees or agents
of City. Contractor shall not incur or have the power to incur any debt, obligation, or liability
whatsoever against City, or bind City in any manner.
8.9. Notices. All notices, demands or requests provided for or permitted to be given pursuant
to this Agreement must be in writing. All notices, demands, and requests to be sent to any
Party shall be deemed to have been properly given or served if personally served or deposited
in the United States mail, addressed to such Party, postage prepaid, registered or certified,
with return receipt requested, at the addresses identified in this Agreement at the places of
business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in
writing.
8.10. No Waiver. The failure of City to insist, in any one or more instances, upon the
performance of any provision of the Agreement, or to exercise any right in the Agreement,
2018-09-25 Agenda Packet Page 87
??City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
shall not be construed as a waiver or relinquishment of such provisions or rights. Any waiver
of any breach of this Agreement shall not be held to be a waiver of any other or subsequent
breach. Any waiver issued by the City of any provision of the Agreement shall only be
effective if issued in writing by the City and shall be specific and apply only to the particular
matter concerned and not to other similar or dissimilar matters.
8.11. No Limitation. The duties and obligations imposed by this Agreement and the rights
and remedies available hereunder to the parties hereto, and, in particular but without
limitation, the warranties, guarantees, and obligations imposed upon the Agreement or by
this Agreement and all of the rights and remedies available to City thereunder, are in addition
to, and are not to be construed in any way as a limitation of, any rights and remedies imposed
or available by laws, regulations, or codes, by special warranty or guarantee or by other
provisions of the Contract Documents.
8.12. Severability. If any term or provision or portion of a term or provision of this
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.
(End of page. Next page is signature page.)
2018-09-25 Agenda Packet Page 88
??City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
SIGNATURE PAGE
LANDSCAPE MAINTENANCE SERVICES AGREEMENT
IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and
Contractor agree that they have read and understood all terms and conditions of the Agreement,
that they fully agree and consent to be bound by same, and that they are freely entering into this
Agreement as of the Effective Date.
AZTEC LANDSCAPING, INC.CITY OF CHULA VISTA
BY:________________________________ BY: ________________________________
RAFAEL A. AGUILAR MARY CASILLAS SALAS
VICE PRESIDENT OF OPERATIONS MAYOR
ATTEST
BY:
________________________________
Kerry K. Bigelow, MMC
City Clerk
APPROVED AS TO FORM
BY:
________________________________
Glen R. Googins
City Attorney
2018-09-25 Agenda Packet Page 89
??City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
EXHIBIT A
SCOPE OF WORK AND PAYMENT TERMS
1. Contact People for Contract Administration and Legal Notice
A. City Contract Administration:
Iracsema Quilantan
Director of Public Works
1800 Maxwell Road, Chula Vista, CA 91911
619-397-6066
IQuilantan@chulavistaca.gov
For Legal Notice Copy to:
City of Chula Vista
City Attorney
276 Fourth Avenue, Chula Vista, CA 91910
619-691-5037
CityAttorney@chulavistaca.gov
B. Contractor Contract Administration:
AZTEC LANDSCAPING, INC.
Rafael A. Aguilar, Vice President of Operations
7980 Lemon Grove Way, Lemon Grove, CA 91945
619-572-4016
rafael@azteclandscaping.com
For Legal Notice Copy to:
Rocio Alcala, Executive Administrative Assistant
7980 Lemon Grove Way, Lemon Grove, CA 91945
619-778-4682
ralcala@azteclandscaping.com
2. Required Services
A. General Description:
The Contractor will furnish all work, materials, equipment, services, and labor necessary to
fully complete landscape maintenance services of Chula Vista’s Open Space Bid Group 2,
with a reduced level of service in District 24 (the “Project”) in strict accordance with the
Contract Documents.
B. Detailed Description:
The Contractor will perform and complete landscape maintenance services, and all other
required services at various locations throughout the City’s Open Space at the unit prices
contained in Contractor’s submitted bid and this Agreement in strict accordance with the
Contract Documents.
2018-09-25 Agenda Packet Page 90
??City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
3. Term:In accordance with Section 1.10 of this Agreement, the term of this Agreement shall
begin October 1, 2018 and end on June 30, 2019 for completion of all Required Services.
4. Compensation:
*Disclosure:
Payment. As full compensation in consideration of completion of the Required Services in strict
accordance with the Contract Documents and in consideration of the fulfillment of all of the
Contractor’s obligations under the Contract Documents, the City shall pay the Contractor for the
quantity of line item of work actually performed in strict accordance with the Contract
Documents. The City’s obligation to pay the Contractor under this Agreement is subject to and
may be offset by charges that may apply to the Contractor under this Agreement.
5. Special Provisions:
Security for Performance: Contractor shall procure Performance and Labor and Material Bonds
for the Work that are to be issued by a Surety authorized to transact such business in the State of
California, be listed as approved by the United States Department of Treasury Circular 570, and
whose Underwriting Limitation is sufficient to issue bonds in the amount required by any
contract entered into pursuant to this Notice. Approved listing can be obtained through the
United States Department of Treasury’s website
www.fiscal.treasury.gov/fsreports/ref/suretyBnd/c570.htm. Any renewal certificates required
during the course of the Agreement must be renewed and received by the City within fifteen (15)
days prior to expiration and must meet the same criteria. No substitutions shall be allowed.
Section Item Code Description Unit of Measure Quantity
Aztec Landscaping,
Inc. - Unit Price
Aztec Landscaping,
Inc. - Line Total
36 Main Bid Grp 2 District 14 284.56 acres Code 1- 2.3 acres MONTHLY 9 $785.00 $7,065.00
37 Main Bid Grp 2 District 14 284.56 acres Code 2- 0.1 acres MONTHLY 9 $112.00 $1,008.00
38 Main Bid Grp 2 District 14 284.56 acres Code 3- 1.66 acres MONTHLY 9 $4,490.00 $40,410.00
39 Main Bid Grp 2 District 14 284.56 acres Code 4- 43.6 acres MONTHLY 9 $1,347.00 $12,123.00
40 Main Bid Grp 2 District 14 284.56 acres Code 5- 236.9 acres MONTHLY 9 $4,490.00 $40,410.00
41 Main Bid Grp 2 District 14 284.56 acres 20 Tree Trims ONE TIME 1 $3,400.00 $3,400.00
42 Main Bid Grp 2 District 14 284.56 acres FERTILIZER PER SCHEDULE 1 $658.00 $658.00
Total $105,074.00
43 Main Bid Grp 2 District 15 5.4 acres Code 1- 0.5 acres MONTHLY 9 $311.00 $2,799.00
44 Main Bid Grp 2 District 15 5.4 acres Code 2- 0 acres MONTHLY 9 $0.00 $0.00
45 Main Bid Grp 2 District 15 5.4 acres Code 3- 0.9 acres MONTHLY 9 $467.00 $4,203.00
46 Main Bid Grp 2 District 15 5.4 acres Code 4- 0 acres MONTHLY 9 $0.00 $0.00
47 Main Bid Grp 2 District 15 5.4 acres Code 5- 4 acres MONTHLY 9 $778.00 $7,002.00
48 Main Bid Grp 2 District 15 5.4 acres 5 Tree Trims ONE TIME 1 $850.00 $850.00
49 Main Bid Grp 2 District 15 5.4 acres FERTILIZER PER SCHEDULE 1 $203.00 $203.00
Total $15,057.00
50 Main Bid Grp 2 District 24 2.73 acres Code 1- 2.7 acres MONTHLY 8 $1,477.00 $11,816.00
51 Main Bid Grp 2 District 24 2.73 acres Code 2- 0.03 acres MONTHLY 8 $78.00 $624.00
52 Main Bid Grp 2 District 24 2.73 acres Code 3- 0 acres MONTHLY 8 $0.00 $0.00
53 Main Bid Grp 2 District 24 2.73 acres Code 4- 0 acres MONTHLY 9 $0.00 $0.00
54 Main Bid Grp 2 District 24 2.73 acres Code 5- 0 acres MONTHLY 9 $0.00 $0.00
Total $12,440.00
Total Group 2 $132,571.00
2018-09-25 Agenda Packet Page 91
??City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
DIR/Prevailing Wages. No Contractor or subcontractor shall be qualified to bid on, be listed in a
bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage
in the performance of any contract for public work, unless currently registered with the
Department of Industrial Relations (DIR) and qualified to perform public work pursuant to Labor
Code section 1725.5. No Contractor or subcontractor may be awarded a contract for public work
on a public works project unless registered with the DIR pursuant to Labor Code section 1725.5.
The Work is subject to compliance monitoring and enforcement by the Department of Industrial
Relations.
Contractor and its subcontractors are required by bid specifications and California Labor Code
sections 1771 and 1774 to pay prevailing wages ("Prevailing Wage Rates") to persons employed
by them for work in a covered work classification under this Agreement. In accordance with the
provisions of Section 1773 of the Labor Code of the State of California, the City has ascertained
the general prevailing wage scales are applicable to the work to be done. The prevailing wage
scales are those determined by the DIR. If Contractor intends to use a craft or classification not
shown on the general prevailing wage rates determinations, it may be required to pay the wage
rate of that craft or classification most closely related to it as shown in the general wage rates
determinations effective at the time of the call for bids.
Non-Collusion Affidavit. Prior to commencing the Project, Contractor shall provide a fully
executed and properly notarized Non-Collusion Affidavit, attached hereto and incorporated
herein as Exhibit D.
Workers’ Compensation Insurance Declaration. Prior to commencing the Project, Contractor
shall provide a fully executed and properly notarized Workers’ Compensation Insurance
Declaration, attached hereto and incorporated herein as Exhibit E.
OPTIONAL (check if applicable):
⾙ Permitted Sub-Contractor/Service Providers: “None”
2018-09-25 Agenda Packet Page 92
??City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
EXHIBIT B
INSURANCE REQUIREMENTS
Contractor shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to
provide the following types and minimum amounts of insurance, as indicated by checking the
applicable boxes (x):
Type of Insurance Minimum Amount Form
⾙ General Liability:
Including products and
completed operations,
personal and
advertising injury
$2,000,000 per occurrence for
bodily injury, personal injury
(including death), and property
damage. If Commercial General
Liability insurance with a general
aggregate limit is used, either the
general aggregate limit must apply
separately to this Agreement or the
general aggregate limit must be
twice the required occurrence limit
Additional Insured Endorsement
or Blanket AI Endorsement for
City*
Waiver of Recovery Endorsement
Insurance Services Office Form
CG 00 01
*Must be primary and must not
exclude Products/Completed
Operations
⾙ Automobile Liability $1,000,000 per accident for bodily
injury, including death, and
property damage
Insurance Services Office Form
CA 00 01
Code 1-Any Auto
Code 8-Hired
Code 9-Non Owned
⾙ Workers’
Compensation
Employer’s Liability
$1,000,000 each accident
$1,000,000 disease policy limit
$1,000,000 disease each employee
Waiver of Recovery Endorsement
2018-09-25 Agenda Packet Page 93
??City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
EXHIBIT C
CONTRACTOR CONFLICT OF INTEREST DESIGNATION
The Political Reform Act1 and the Chula Vista Conflict of Interest Code2 (“Code”) require designated state and local government officials, including some Contractor/Service Providers, to
make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, Contractors designated to file the Form 700 are also required to comply with certain ethics training requirements.3
⾙ A. Contractor IS a corporation or limited liability company and is therefore EXCLUDED4
from disclosure.
☐ B. Contractor is NOT a corporation or limited liability company and disclosure designation is
as follows:
APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE
SERVICES
(Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-
interest-code.)
Name Email Address Applicable Designation
☐A. Full Disclosure
☐B. Limited Disclosure (select one or
more of the categories under which the
Contractor shall file):
☐1. ☐2. ☐3. ☐4. ☐5. ☐6. ☐7.
Justification:
☐C. Excluded from Disclosure
1.Required FilersEach individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Contractor/Service Provider,” pursuant to FPPC Regulation 18700.3, must file a Form 700.
2.Required Filing DeadlinesEach initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement.
3. Filing Designation
1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704.
2 Chula Vista Municipal Code §§2.02.010-2.02.040.
3 Cal. Gov. Code §§53234, et seq.
4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th
261; FPPC Reg. 18700.3 (Consultant defined as an “individual” who participates in making a governmental
decision; “individual” does not include corporation or limited liability company).
2018-09-25 Agenda Packet Page 94
??City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Contractor/Service Provider will provide. Notwithstanding this designation or anything in the Agreement, the Contractor/Service Provider is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619) 691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2.
Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the
written determination of the Contractor’s requirement to comply with the disclosure requirements set forth in
the Code.
Completed by: Sam Oludunfe, Open Space Manager
2018-09-25 Agenda Packet Page 95
??City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
EXHIBIT D
NON-COLLUSION AFFIDAVIT
To the City of Chula Vista, Director of Engineering & Capital Projects:
The undersigned, in submitting a bid for performing the following work by Contract being duly sworn,
deposes and says:
That he/she has not, either directly or indirectly entered into any agreement, participated in any collusion,
or otherwise taken any action in restraint of free competitive bidding and has not accepted any deposit
from any subcontractor or material supplier through any bid depository, the by-laws, rules, and
regulations of which prohibit or prevent the Contractor from considering any bid from any subcontractor
or material supplier, which is not processed through said bid depository, or which prevent any
subcontractor or material supplier from bidding to any Contractor who does not use the facilities or accept
bids from or through such bid depository in connection with this Contract.
_____________________________________
Business Address Company
_____________________________________
Place of Residence Signature of Bidder
(Attach Proper Notarization)
2018-09-25 Agenda Packet Page 96
??City of Chula Vista Agreement No.: 18084
Consultant Name: AZTEC LANDSCAPING, INC.
EXHIBIT E
WORKERS’ COMPENSATION INSURANCE DECLARATION
Date:________________________
I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be
insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the
provisions of that code, and I will comply with such provisions before commencing the performance of
the work of this Contract.
_____________________________
Signature
_____________________________
Contractor
_____________________________
State Contractor's License No.
_____________________________
Address
_____________________________
City/State
_____________________________
Phone Number
(Attach Proper Notarization)
2018-09-25 Agenda Packet Page 97
?City of Chula Vista Agreement No.: 18085
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
CITY OF CHULA VISTA
CONTRACTOR SERVICES AGREEMENT
WITH TERRACARE ASSOCIATES, LLC
TO PROVIDE LANDSCAPE MAINTENANCE SERVICES
This Agreement is entered into effective as of October 1, 2018 by and between the City of Chula Vista, a
chartered municipal corporation (“City”) and Terracare Associates, LLC , a California corporation
(“Contractor”), (collectively, the “Parties” and, individually, a “Party”) with reference to the following facts:
RECITALS
WHEREAS the City administers and maintains 36 Open Space Districts, Maintenance Community
Facilities Districts, and their associated zones (collectively the “Districts”) and levies an annual assessment on
property owners within each district to provide funding for maintenance of common area spaces; and
WHEREAS the City contracts with landscape firms to provide landscape maintenance services for the
Districts; and
WHEREAS the landscape maintenance contracts in 11 Districts are set to expire on September 30, 2018,
namely: Districts 7, 14; 15; 20 Zones 2, 3, 4, 5, and 6; 24; Village 6 McMillin; and Village 6 OR; and I-805
DAR West and Village 2 (New Development) are newly acquired landscape maintenance areas; and
WHEREAS on July 27, 2018 City staff issued a Request for Proposals for landscape maintenance
services for common area spaces within the 13 Districts; and
WHEREAS in the Request for Proposal, the common area spaces within the 13 Districts were placed
into four Bid Groups; and
WHEREAS a pre-bid meeting was held on August 1, 2018 to review and clarify bid requirements and to
emphasize that the bids would be evaluated and contracts awarded by Bid Group to the lowest most competent
and qualified bidder for each Bid Group; and
WHEREAS on August 15, 2018 City staff received responsive bids for Bid Group 3 (Otay Ranch
Village 2) from two landscape maintenance companies which included Terracare Associates, LLC; and
WHEREAS after compilation of the bids staff determined Terracare Associates, LLC to be the lowest
responsive bidder for Bid Group 3; and
WHEREAS staff recommended that the City Council accept the bids and award the landscape
maintenance contract for Bid Group 3 to Terracare Associates, LLC for the 9-month period of October 1, 2018
to June 30, 2019, excepting OSD 7, DAR West, areas irrigated by Controllers SD-1, SD-2, and SV-7 which will
be serviced for the 6-month period of January 1, 2019 to June 30, 2019; and
WHEREAS the City Council accepted the bids and awarded the landscape maintenance contract for Bid
Group 3 to Terracare Associates, LLC on September 25, 2018; and
WHEREAS the Contractor warrants and represents that it can deliver the services required of Contractor
to City in accordance with the time frames and the terms and conditions of this Agreement.
[End of Recitals. Next Page Starts Obligatory Provisions.]
2018-09-25 Agenda Packet Page 98
?City of Chula Vista Agreement No.: 18085
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
OBLIGATORY PROVISIONS
NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other
good and valuable considerations, the receipt and sufficiency of which the Parties hereby acknowledge, City
and Contractor hereby agree as follows:
1. SERVICES
1.0. Contract Documents. This Agreement consists of the following contract documents (“Contract
Documents”), all of which are incorporated into and made a part of this Agreement as if set forth in full:
1.0.1. This Agreement and all exhibits hereto, and any change orders, amendments, and supplemental
agreements duly authorized and executed by authorized representatives of the City and Contractor.
1.0.2. All permits for the Project.
1.0.3. The City of Chula Vista’s Standard Special Provisions, Standard Special Provisions
(“Greenbook”), Special Provisions, and Standard Plans.
1.0.4. All referenced specifications, plans, and materials.
1.0.5. The Project’s Notice to Bidders, Bid Requirements and Conditions, Bid Form, Special
Provisions – General, Special Provisions – Technical, Bid General Provisions, and Open Space Landscape
Maintenance Standards.
1.0.6. The successful bidder’s bid documents submitted in response to the request for bid, and any
post-bid documentation submitted prior to the award of the Project contract.
1.1. Required Services. Contractor agrees to perform the services, and deliver to City the “Deliverables”
(if any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the
time frames set forth therein, time being of the essence for this Agreement. The services and/or Deliverables
described in Exhibit A shall be referred to herein as the “Required Services.”
1.2. Reductions in Scope of Work. City may independently, or upon request from Contractor/Service
Provider, from time to time, reduce the Required Services to be performed by the Contractor/Service
Provider under this Agreement. Upon doing so, City and Contractor/Service Provider agree to meet and
confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated
with the reduction.
1.3. Additional Services. Subject to compliance with the City’s Charter, codes, policies, procedures and
ordinances governing procurement and purchasing authority, City may request Contractor/Service Provider
provide additional services related to the Required Services (“Additional Services”). If so, City and
Contractor/Service Provider agree to meet and confer in good faith for the purpose of negotiating an
amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the
Additional Services shall be charged and paid consistent with the rates and terms already provided therein.
Once added to Exhibit A, “Additional Services” shall also become “Required Services” for purposes of this
Agreement.
1.4. Standard of Care. Contractor expressly warrants and agrees that any and all hereunder shall be
performed in accordance with the highest standard of care exercised by members of the profession currently
practicing under similar conditions and in similar locations.
2018-09-25 Agenda Packet Page 99
?City of Chula Vista Agreement No.: 18085
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
1.5. No Waiver of Standard of Care. Where approval by City is required, it is understood to be
conceptual approval only and does not relieve the Contractor of responsibility for complying with all laws,
codes, industry standards, and liability for damages caused by negligent acts, errors, omissions,
noncompliance with industry standards, or the willful misconduct of the Contractor or its subcontractors.
1.6. Security for Performance. In the event that Exhibit A Section 4 indicates the need for Contractor to
provide additional security for performance of its duties under this Agreement, Contractor shall provide
such additional security prior to commencement of its Required Services in the form and on the terms
prescribed on Exhibit A, or as otherwise prescribed by the City Attorney.
1.7. Compliance with Laws. In its performance of the Required Services, Contractor shall comply with
any and all applicable federal, state and local laws, including the Chula Vista Municipal Code.
1.8. Business License. Prior to commencement of work, Contractor shall obtain a business license from
City.
1.9. Subcontractors. Prior to commencement of any work, Contractor shall submit for City’s information
and approval a list of any and all subcontractors to be used by Contractor in the performance of the
Required Services. Contractor agrees to take appropriate measures necessary to ensure that all
subcontractors and personnel utilized by the Contractor to complete its obligations under this Agreement
comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In
addition, if any subcontractor is expected to fulfill any responsibilities of the Contractor under this
Agreement, Contractor shall ensure that each and every subcontractor carries out the Contractor’s
responsibilities as set forth in this Agreement. The Contractor is fully responsible for the acts and omissions
of all subcontractors of every tier for the Project (as defined in Exhibit A), and for all persons and entities
either directly or indirectly employed by or under the control of any subcontractor in the same manner and
to the same extent that Contractor is responsible for the acts and omissions of persons directly employed by
it or under its control pursuant to this Agreement.
1.9.1. Subcontract Indemnity. Contractor shall require all subcontracts for the Project to obligate
each subcontractor, with respect to the work to be performed under that subcontract, to defend, indemnify,
protect, and hold harmless the Indemnified Parties (as defined in Section 4.1) in the same manner and to the
same extent that Contractor is required to defend, indemnify, protect, and hold harmless the Indemnified
Parties under this Agreement.
1.9.2. Subcontract Insurance. Contractor shall require all subcontracts for the Project to obligate each
subcontractor, with respect to the work to be performed under that subcontract, to procure and maintain
insurance in the same manner and to the same extent that Contractor is required to procure and maintain
insurance under the Agreement, including without limitation naming the City, its officers, officials,
employees, and volunteers as additional insureds.
1.9.3. Subcontractor Licensure. Contractor shall require all subcontractors for the Project to be
appropriately licensed before commencing work for the Project, and to remain licensed for the duration of
their work performed under the subcontract. In the event that a subcontractor is not properly licensed at any
time during the Project, Contractor shall immediately cease payment to that subcontractor and Contractor
shall return to the City any payment made to that subcontractor for work performed during the period for
which the subcontractor was not licensed.
1.9.4. Subcontractor Payments. Contractor shall pay its subcontractors for the Project not later than
seven (7) days after receipt of each progress payment received in accordance with the provision in Section
7108.5 of the California Business and Professions Code. Any delay or postponement of payment may take
2018-09-25 Agenda Packet Page 100
?City of Chula Vista Agreement No.: 18085
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
place only for good cause and with the City’s prior written approval. Any violation of Section 7108.5 shall
subject the violating Contractor and its respective subcontractors to the penalties, sanctions, and other
remedies of that section.
1.10. Term. This Agreement shall commence on the earlier to occur of the Effective Date or Contractor’s
commencement of the Required Services hereunder, and shall terminate when the Parties have complied
with all their obligations hereunder; provided, however, provisions which expressly survive termination
shall remain in effect.
2. COMPENSATION
2.1. General. For satisfactory performance of the Required Services, City agrees to compensate
Contractor in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and
payment are set forth in this Section 2.
2.2. Detailed Invoicing. Contractor agrees to provide City with a detailed invoice for services performed
each month, within thirty (30) days of the end of the month in which the services were performed, unless
otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date
of the Agreement. All charges must be presented in a line item format with each task separately explained in
reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced
to date, and the remaining amount available under any approved budget. Contractor must obtain prior
written authorization from City for any fees or expenses that exceed the estimated budget.
2.3. Payment to Contractor. Upon receipt of a properly prepared invoice and confirmation that the
Required Services detailed in the invoice have been satisfactorily performed, City shall pay Contractor for
the invoice amount within thirty (30) days. Payment shall be made in accordance with the terms and
conditions set forth in Exhibit A and section 2.4, below. At City’s discretion, invoices not timely submitted
may be subject to a penalty of up to five percent (5%) of the amount invoiced.
2.4. Retention Policy. City shall retain ten percent (10%) of the amount due for Required Services
detailed on each invoice (the “holdback amount”). Upon City review and determination of Project
Completion, the holdback amount will be issued to Contractor.
2.5. Reimbursement of Costs. City may reimburse Contractor’s out-of-pocket costs incurred by
Contractor in the performance of the Required Services if negotiated in advance and included in Exhibit A.
Unless specifically provided in Exhibit A, Contractor shall be responsible for any and all out-of-pocket costs
incurred by Contractor in the performance of the Required Services.
2.6. Exclusions. City shall not be responsible for payment to Contractor for any fees or costs in excess of
any agreed upon budget, rate, or other maximum amount(s) provided for in Exhibit A. City shall also not be
responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors,
omissions, negligence or acts of willful misconduct of Contractor, its agents, employees, or subcontractors.
2.7. Payment Not Final Approval. Contractor understands and agrees that payment to the Contractor or
reimbursement for any Contractor costs related to the performance of Required Services does not constitute
a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for
payment under this Agreement, nor does it constitute a waiver of any violation by Contractor of the terms of
this Agreement. If City determines that Contractor is not entitled to receive any amount of compensation
already paid, City will notify Contractor in writing and Contractor shall promptly return such amount.
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3. INSURANCE
3.1. Required Insurance. Contractor must procure and maintain, during the period of performance of
Required Services under this Agreement, and for twelve months after completion of Required Services, the
policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this reference
(the “Required Insurance”). The Required Insurance shall also comply with all other terms of this Section.
3.2. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions relating to the
Required Insurance must be disclosed to and approved by City in advance of the commencement of work.
3.3. Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact
business in the State of California with a current A.M. Best’s rating of A V or better, or, if insurance is
placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus
Lines Insurers (LESLI) with a current A.M. Best’s rating of no less than A X. For Workers’ Compensation
Insurance, insurance issued by the State Compensation Fund is also acceptable.
3.4. Subcontractors. Contractor must include and/or require to be included all subcontractors of every tier
as insureds under its policies and/or furnish separate certificates and endorsements demonstrating separate
coverage for those not under its policies. Any separate coverage for subcontractors of every tier must also
comply with the terms of this Agreement.
3.5. Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as
additional insureds with respect to any policy of general liability, automobile, or pollution insurance
specified as required in Exhibit B or as may otherwise be specified by City’s Risk Manager. The general
liability additional insured coverage must be provided in the form of an endorsement to the Contractor’s
insurance using ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude
Products/Completed Operations coverage.
3.6. General Liability Coverage to be “Primary”. Contractor’s general liability coverage must be primary
insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance
or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate
from the insurance provided by Contractor and in no way relieves Contractor from its responsibility to
provide insurance.
3.7. No Cancellation. No Required Insurance policy may be canceled by either Party during the required
insured period under this Agreement, except after thirty days’ prior written notice to the City by certified
mail, return receipt requested. Prior to the effective date of any such cancellation Contractor must procure
and put into effect equivalent coverage(s).
3.8. Waiver of Subrogation. Contractor’s insurer(s) will provide a Waiver of Subrogation in favor of the
City for each Required Insurance policy under this Agreement. In addition, Contractor waives any right it
may have or may obtain to subrogation for a claim against City.
3.9. Verification of Coverage. Prior to commencement of any work, Contractor shall furnish City with
original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that
Contractor has obtained the Required Insurance in compliance with the terms of this Agreement. The words
“will endeavor” and “but failure to mail such notice shall impose no obligation or liability of any kind upon
the company, its agents, or representatives” or any similar language must be deleted from all certificates.
The required certificates and endorsements should otherwise be on industry standard forms. The City
reserves the right to require, at any time, complete, certified copies of all required insurance policies,
including endorsements evidencing the coverage required by these specifications.
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3.10. Claims-Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution
Liability and/or Errors & Omissions coverage are required and are provided on a claims-made form, the
following requirements also apply:
a. The “Retro Date” must be shown, and must be before the date of this Agreement or the
beginning of the work required by this Agreement.
b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5)
years after completion of the work required by this Agreement.
c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form
with a “Retro Date” prior to the effective date of this Agreement, the Contractor/Service Provider must
purchase “extended reporting” coverage for a minimum of five (5) years after completion of the work
required by this Agreement.
d. A copy of the claims reporting requirements must be submitted to the City for review.
3.11. Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed
to limit the Contractor/Service Provider’s obligations under this Agreement, including Indemnity.
3.12. Additional Coverage. To the extent that insurance coverage provided by Contractor maintains higher
limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher
limits maintained.
4. INDEMNIFICATION
4.1. General. To the maximum extent allowed by law, Contractor shall protect, defend, indemnify and
hold harmless City, its elected and appointed officers, agents, employees and volunteers (collectively,
“Indemnified Parties”), from and against any and all claims, demands, causes of action, costs, expenses,
(including reasonable attorneys’ fees and court costs), liability, loss, damage or injury, in law or equity, to
property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts,
omissions, negligence, or willful misconduct of Contractor, its officials, officers, employees, agents, and
contractors, arising out of or in connection with the performance of the Required Services, the results of
such performance, or this Agreement. This indemnity provision does not include any claims, damages,
liability, costs and expenses arising from the sole negligence, active negligence, or willful misconduct of the
Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be
caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in
combination with the active or passive negligent acts or omissions of the Contractor, its employees, agents
or officers, or any third party.
4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the
forgoing, if the services provided under this Agreement are design professional services, as defined by
California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity
obligation under Section 1, above, shall be limited to the extent required by California Civil Code section
2782.8.
4.3. Costs of Defense and Award. Included in Contractor’s obligations under this Section 4 is
Contractor’s obligation to defend, at Contractor’s own cost, expense and risk, any and all suits, actions or
other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties.
Subject to the limitations in this Section 4, Contractor shall pay and satisfy any judgment, award or decree
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that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses
and costs incurred by any of them.
4.4. Contractor/Service Provider’s Obligations Not Limited or Modified. Contractor’s obligations under
this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by
any prior or subsequent declaration by the Contractor. Furthermore, Contractor’s obligations under this
Section 4 shall in no way limit, modify or excuse any of Contractor’s other obligations or duties under this
Agreement.
4.5. Enforcement Costs. Contractor/Service Provider agrees to pay any and all costs City incurs in
enforcing Contractor’s obligations under this Section 4.
4.6. Survival. Contractor’s obligations under this Section 4 shall survive the termination of this
Agreement.
5.FINANCIAL INTERESTS OF CONTRACTOR/SERVICE PROVIDER.
5.1. Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code
require certain government officials and Contractor performing work for government agencies to publicly
disclose certain of their personal assets and income using a Statement of Economic Interests form (Form
700). In order to assure compliance with these requirements, Contractor shall comply with the disclosure
requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference.
5.2. Disclosures; Prohibited Interests. Independent of whether Contractor is required to file a Form 700,
Contractor warrants and represents that it has disclosed to City any economic interests held by Contractor,
or its employees or subcontractors who will be performing the Required Services, in any real property or
project which is the subject of this Agreement. Contractor warrants and represents that it has not employed
or retained any company or person, other than a bona fide employee or approved subcontractor working
solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants and represents that it
has not paid or agreed to pay any company or person, other than a bona fide employee or approved
subcontractor working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other
consideration contingent upon or resulting from the award or making of this Agreement. Contractor further
warrants and represents that no officer or employee of City has any interest, whether contractual, non-
contractual, financial or otherwise, in this transaction, the proceeds hereof, or in the business of
Contractor/Service Provider or Contractor’s subcontractors. Contractor further agrees to notify City in the
event any such interest is discovered whether or not such interest is prohibited by law or this Agreement.
For breach or violation of any of these warranties, City shall have the right to rescind this Agreement
without liability.
6. REMEDIES
6.1. Termination for Cause. If for any reason whatsoever Contractor shall fail to perform the Required
Services under this Agreement in a proper or timely manner, or if Contractor shall violate any of the other
covenants, agreements or conditions of this Agreement (each a “Default”), in addition to any and all other
rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to
terminate this Agreement by giving five (5) days written notice to Contractor. Such notice shall identify the
Default and the Agreement termination date. If Contractor notifies City of its intent to cure such Default
prior to City’s specified termination date, and City agrees that the specified Default is capable of being
cured, City may grant Contractor up to ten (10) additional days after the designated termination date to
effectuate such cure. In the event of a termination under this Section 6.1, Contractor shall immediately
provide City any and all ”Work Product” (defined in Section 7 below) prepared by Contractor as part of the
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Required Services. Such Work Product shall be City’s sole and exclusive property as provided in Section 7
hereof. Contractor may be entitled to compensation for work satisfactorily performed prior to Contractor’s
receipt of the Default notice; provided, however, in no event shall such compensation exceed the amount
that would have been payable under this Agreement for such work, and any such compensation shall be
reduced by any costs incurred or projected to be incurred by City as a result of the Default.
6.2. Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement, or
any portion of the Required Services, at any time and for any reason, with or without cause, or for no reason
by giving specific written notice to Contractor/Service Provider of such termination or suspension at least
fifteen (15) days prior to the effective date thereof. Upon receipt of such notice, Contractor shall
immediately cease all work under the Agreement and promptly deliver all “Work Product” (defined in
Section 7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in
Section 7 hereof. Contractor shall be entitled to receive just and equitable compensation for this Work
Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily
performed as of the date of the termination/suspension notice plus any additional remaining Required
Services requested or approved by City in advance that would maximize City’s value under the Agreement.
6.3. Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this
Section, Contractor hereby expressly waives any and all claims for damages or compensation as a result of
such termination except as expressly provided in this Section 6.
6.4. Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising
out of this Agreement against City unless a claim has first been presented in writing and filed with City and
acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal
Code, as same may be amended, the provisions of which, including such policies and procedures used by
City in the implementation of same, are incorporated herein by this reference. Upon request by City,
Contractor shall meet and confer in good faith with City for the purpose of resolving any dispute over the
terms of this Agreement.
6.5. Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the
laws of the State of California. Any action arising under or relating to this Agreement shall be brought only
in San Diego County, State of California.
6.6. Service of Process. Contractor agrees that it is subject to personal jurisdiction in California. If
Contractor/Service Provider is a foreign corporation, limited liability company, or partnership that is not
registered with the California Secretary of State, Contractor irrevocably consents to service of process on
Contractor/Service Provider by first class mail directed to the individual and address listed under “For Legal
Notice,” in section 1.B. of Exhibit A to this Agreement, and that such service shall be effective five days
after mailing.
7. OWNERSHIP AND USE OF WORK PRODUCT
All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems, and any other
materials or properties produced in whole or in part under this Agreement in connection with the
performance of the Required Services (collectively “Work Product”) shall be the sole and exclusive
property of City. No such Work Product shall be subject to private use, copyrights, or patent rights by
Contractor in the United States or in any other country without the express, prior written consent of City.
City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent,
in whole or in part, any such Work Product, without requiring any permission of Contractor, except as may
be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws.
With respect to computer files containing data generated as Work Product, Contractor shall make available
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to City, upon reasonable written request by City, the necessary functional computer software and hardware
for purposes of accessing, compiling, transferring, and printing computer files.
8. GENERAL PROVISIONS
8.1. Reserved.
8.2. Assignment. City would not have entered into this Agreement but for Contractor’s unique qualifications
and traits. Contractor shall not assign any of its rights or responsibilities under this Agreement, nor any part
hereof, without City’s prior written consent, which City may grant, condition, or deny in its sole discretion.
8.3. Authority. The person(s) executing this Agreement for Contractor warrants and represents that they
have the authority to execute same on behalf of Contractor and to bind Contractor to its obligations
hereunder without any further action or direction from Contractor or any board, principal, or officer thereof.
8.4. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which shall constitute one Agreement after each Party has signed such a counterpart.
8.5. Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements
expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject
matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein
by reference. All prior or contemporaneous agreements, understandings, representations, warranties and
statements, oral or written, are superseded.
8.6. Record Retention. During the course of the Agreement and for three (3) years following completion
of the Required Services, Contractor agrees to maintain, intact and readily accessible, all data, documents,
reports, records, contracts, and supporting materials relating to the performance of the Agreement, including
accounting for costs and expenses charged to City, including such records in the possession of
subcontractors of every tier.
8.7. Further Assurances. The Parties agree to perform such further acts and to execute and deliver such
additional documents and instruments as may be reasonably required in order to carry out the provisions of
this Agreement and the intentions of the Parties.
8.8. Independent Contractor. Contractor is and shall at all times remain as to City a wholly independent
contractor. Neither City nor any of its officers, employees, agents, or volunteers shall have control over the
conduct of Contractor/Service Provider or any of Contractor’s officers, employees, or agents (“Contractor
Related Individuals”), except as set forth in this Agreement. No Contractor Related Individuals shall be
deemed employees of City, and none of them shall be entitled to any benefits to which City employees are
entitled, including but not limited to overtime, retirement benefits, worker's compensation benefits, injury
leave, or other leave benefits. Furthermore, City will not withhold state or federal income tax, social security
tax or any other payroll tax with respect to any Contractor Related Individuals; instead, Contractor/Service
Provider shall be solely responsible for the payment of same and shall hold the City harmless with respect to
same. Contractor shall not at any time or in any manner represent that it or any of its Contractor Related
Individuals are employees or agents of City. Contractor shall not incur or have the power to incur any debt,
obligation, or liability whatsoever against City, or bind City in any manner.
8.9. Notices. All notices, demands or requests provided for or permitted to be given pursuant to this
Agreement must be in writing. All notices, demands, and requests to be sent to any Party shall be deemed to
have been properly given or served if personally served or deposited in the United States mail, addressed to
such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified
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in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or
otherwise provided in writing.
8.10. No Waiver. The failure of City to insist, in any one or more instances, upon the performance of any
provision of the Agreement, or to exercise any right in the Agreement, shall not be construed as a waiver or
relinquishment of such provisions or rights. Any waiver of any breach of this Agreement shall not be held to
be a waiver of any other or subsequent breach. Any waiver issued by the City of any provision of the
Agreement shall only be effective if issued in writing by the City and shall be specific and apply only to the
particular matter concerned and not to other similar or dissimilar matters.
8.11. No Limitation. The duties and obligations imposed by this Agreement and the rights and remedies
available hereunder to the parties hereto, and, in particular but without limitation, the warranties, guarantees,
and obligations imposed upon the Agreement or by this Agreement and all of the rights and remedies
available to City thereunder, are in addition to, and are not to be construed in any way as a limitation of, any
rights and remedies imposed or available by laws, regulations, or codes, by special warranty or guarantee or
by other provisions of the Contract Documents.
8.12. Severability. If any term or provision or portion of a term or provision of this 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.
(End of page. Next page is signature page.)
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SIGNATURE PAGE
LANDSCAPE MAINTENANCE SERVICES AGREEMENT
IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and Contractor
agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and
consent to be bound by same, and that they are freely entering into this Agreement as of the Effective Date.
Terracare Associates, LLC CITY OF CHULA VISTA
BY:________________________________ BY: ________________________________
SERGIO HERNANDEZ MARY CASILLAS SALAS
REGION MANAGER MAYOR
ATTEST
BY:
________________________________
Kerry K. Bigelow, MMC
City Clerk
APPROVED AS TO FORM
BY: ________________________________
GLEN R. GOOGINS
CITY ATTORNEY
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EXHIBIT A
SCOPE OF WORK AND PAYMENT TERMS
1. Contact People for Contract Administration and Legal Notice
A. City Contract Administration:
Iracsema Quilantan
Director of Public Works
1800 Maxwell Road, Chula Vista, CA 91911
619-397-6066
IQuilantan@chulavistaca.gov
For Legal Notice Copy to:
City of Chula Vista
City Attorney
276 Fourth Avenue, Chula Vista, CA 91910
619-691-5037
CityAttorney@chulavistaca.gov
B. Contractor Contract Administration:
Terracare Associates, LLC Monarch Landscape Companies
Sergio Hernandez, Region Manager
550 S. Hope St., Suite 1675, Los Angeles, CA 90071
310-367-0221
sergio.hernandez@monarchlandscape.com
For Legal Notice Copy to:
Myesha Rozar, Terracare Associates Branch Administrator
1545 Lake Drive, Encinitas, CA 92024
760-633-2200
myesha.rozar@monarchlandscape.com
2. Required Services
A. General Description:
The Contractor will furnish all work, materials, equipment, services, and labor necessary to fully complete
landscape maintenance services of Chula Vista’s Open Space Bid Group 3 (the “Project”) in strict
accordance with the Contract Documents.
B. Detailed Description:
The Contractor will perform and complete landscape maintenance services, and all other Required Services
at various locations throughout the City’s Open Space at the unit prices contained in Contractor’s submitted
bid and this Agreement in strict accordance with the Contract Documents.
3. Term:In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin October
1, 2018 and end on June 30, 2019 for completion of all Required Services.
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4. Compensation:
*Disclosure:
Payment. As full compensation in consideration of completion of the Required Services in strict accordance
with the Contract Documents and in consideration of the fulfillment of all of the Contractor’s obligations under
the Contract Documents, the City shall pay the Contractor for the quantity of line item of work actually
performed in strict accordance with the Contract Documents. The City’s obligation to pay the Contractor under
this Agreement is subject to and may be offset by charges that may apply to the Contractor under this
Agreement.
5. Special Provisions:
Security for Performance: Contractor shall procure Performance and Labor and Material Bonds for the Work
that are to be issued by a Surety authorized to transact such business in the State of California, be listed as
approved by the United States Department of Treasury Circular 570, and whose Underwriting Limitation is
sufficient to issue bonds in the amount required by any contract entered into pursuant to this Notice. Approved
listing can be obtained through the United States Department of Treasury’s website
www.fiscal.treasury.gov/fsreports/ref/suretyBnd/c570.htm. Any renewal certificates required during the course
of the Agreement must be renewed and received by the City within fifteen (15) days prior to expiration and
must meet the same criteria. No substitutions shall be allowed.
DIR/Prevailing Wages. No Contractor or subcontractor shall be qualified to bid on, be listed in a bid proposal,
subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any
contract for public work, unless currently registered with the Department of Industrial Relations (DIR) and
qualified to perform public work pursuant to Labor Code section 1725.5. No Contractor or subcontractor may
be awarded a contract for public work on a public works project unless registered with the DIR pursuant to
Labor Code section 1725.5. The Work is subject to compliance monitoring and enforcement by the Department
of Industrial Relations.
Contractor and its subcontractors are required by bid specifications and California Labor Code sections 1771
and 1774 to pay prevailing wages ("Prevailing Wage Rates") to persons employed by them for work in a
covered work classification under this Agreement. In accordance with the provisions of Section 1773 of the
Labor Code of the State of California, the City has ascertained the general prevailing wage scales are applicable
to the work to be done. The prevailing wage scales are those determined by the DIR. If Contractor intends to
use a craft or classification not shown on the general prevailing wage rates determinations, it may be required to
pay the wage rate of that craft or classification most closely related to it as shown in the general wage rates
determinations effective at the time of the call for bids.
Non-Collusion Affidavit. Prior to commencing the Project, Contractor shall provide a fully executed and
properly notarized Non-Collusion Affidavit, attached hereto and incorporated herein as Exhibit D.
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Workers’ Compensation Insurance Declaration. Prior to commencing the Project, Contractor shall provide a
fully executed and properly notarized Workers’ Compensation Insurance Declaration, attached hereto and
incorporated herein as Exhibit E.
OPTIONAL (check if applicable):
⾙ Permitted Sub-Contractor/Service Providers: “None”
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EXHIBIT B
INSURANCE REQUIREMENTS
Contractor shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the
following types and minimum amounts of insurance, as indicated by checking the applicable boxes (x):
Type of Insurance Minimum Amount Form
⾙ General Liability:
Including products and
completed operations,
personal and
advertising injury
$2,000,000 per occurrence for
bodily injury, personal injury
(including death), and property
damage. If Commercial General
Liability insurance with a general
aggregate limit is used, either the
general aggregate limit must apply
separately to this Agreement or the
general aggregate limit must be
twice the required occurrence limit
Additional Insured Endorsement
or Blanket AI Endorsement for
City*
Waiver of Recovery Endorsement
Insurance Services Office Form
CG 00 01
*Must be primary and must not
exclude Products/Completed
Operations
⾙ Automobile Liability $1,000,000 per accident for bodily
injury, including death, and
property damage
Insurance Services Office Form
CA 00 01
Code 1-Any Auto
Code 8-Hired
Code 9-Non Owned
⾙ Workers’
Compensation
Employer’s Liability
$1,000,000 each accident
$1,000,000 disease policy limit
$1,000,000 disease each employee
Waiver of Recovery Endorsement
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EXHIBIT C
CONTRACTOR CONFLICT OF INTEREST DESIGNATION
The Political Reform Act1 and the Chula Vista Conflict of Interest Code2 (“Code”) require designated state and local government officials, including some Contractor/Service Providers, to make certain public disclosures
using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, Contractors designated to file the Form 700 are also required to comply with certain ethics training requirements.3
⾙ A. Contractor IS a corporation or limited liability company and is therefore EXCLUDED4 from disclosure.
☐ B. Contractor is NOT a corporation or limited liability company and disclosure designation is as follows:
APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES
(Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.)
Name Email Address Applicable Designation
☐A. Full Disclosure
☐B. Limited Disclosure (select one or more of the
categories under which the Contractor shall file):
☐1. ☐2. ☐3. ☐4. ☐5. ☐6. ☐7.
Justification:
☐C. Excluded from Disclosure
1.Required FilersEach individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Contractor/Service Provider,” pursuant to FPPC Regulation 18700.3, must file a Form 700.
2.Required Filing DeadlinesEach initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement.
3. Filing DesignationThe City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Contractor/Service Provider will provide. Notwithstanding this designation or anything in the Agreement, the Contractor/Service Provider is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2.
Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written
determination of the Contractor’s requirement to comply with the disclosure requirements set forth in the Code.
Completed by: Sam Oludunfe, Open Space Manager
1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704.
2 Chula Vista Municipal Code §§2.02.010-2.02.040.
3 Cal. Gov. Code §§53234, et seq.
4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261; FPPC Reg.
18700.3 (Consultant defined as an “individual” who participates in making a governmental decision; “individual” does not include
corporation or limited liability company).
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??City of Chula Vista Agreement No.: 18085
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
EXHIBIT D
NON-COLLUSION AFFIDAVIT
To the City of Chula Vista, Director of Engineering & Capital Projects:
The undersigned, in submitting a bid for performing the following work by Contract being duly sworn, deposes and says:
That he/she has not, either directly or indirectly entered into any agreement, participated in any collusion, or otherwise
taken any action in restraint of free competitive bidding and has not accepted any deposit from any subcontractor or
material supplier through any bid depository, the by-laws, rules, and regulations of which prohibit or prevent the
Contractor from considering any bid from any subcontractor or material supplier, which is not processed through said bid
depository, or which prevent any subcontractor or material supplier from bidding to any Contractor who does not use the
facilities or accept bids from or through such bid depository in connection with this Contract.
_____________________________________
Business Address Company
_____________________________________
Place of Residence Signature of Bidder
(Attach Proper Notarization)
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??City of Chula Vista Agreement No.: 18085
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EXHIBIT E
WORKERS’ COMPENSATION INSURANCE DECLARATION
Date:________________________
I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against
liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that code, and I
will comply with such provisions before commencing the performance of the work of this Contract.
_____________________________
Signature
_____________________________
Contractor
_____________________________
State Contractor's License No.
_____________________________
Address
_____________________________
City/State
_____________________________
Phone Number
(Attach Proper Notarization)
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?City of Chula Vista Agreement No.: 18086
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
CITY OF CHULA VISTA
CONTRACTOR SERVICES AGREEMENT
WITH TERRACARE ASSOCIATES, LLC
TO PROVIDE LANDSCAPE MAINTENANCE SERVICES
This Agreement is entered into effective as of October 1, 2018 by and between the City of Chula Vista, a
chartered municipal corporation (“City”) and Terracare Associates, LLC, a California corporation
(“Contractor”), (collectively, the “Parties” and, individually, a “Party”) with reference to the following facts:
RECITALS
WHEREAS the City administers and maintains 36 Open Space Districts, Maintenance Community
Facilities Districts, and their associated zones (collectively the “Districts”) and levies an annual assessment on
property owners within each district to provide funding for maintenance of common area spaces; and
WHEREAS the City contracts with landscape firms to provide landscape maintenance services for the
Districts; and
WHEREAS the landscape maintenance contracts in 11 Districts are set to expire on September 30, 2018,
namely: Districts 7, 14; 15; 20 Zones 2, 3, 4, 5, and 6; 24; Village 6 McMillin; and Village 6 OR; and I-805
DAR West and Village 2 (New Development) are newly acquired landscape maintenance areas; and
WHEREAS on July 27, 2018 City staff issued a Request for Proposals for landscape maintenance
services for common area spaces within the 13 Districts; and
WHEREAS in the Request for Proposal, the common area spaces within the 13 Districts were placed
into four Bid Groups; and
WHEREAS a pre-bid meeting was held on August 1, 2018 to review and clarify bid requirements and to
emphasize that the bids would be evaluated and contracts awarded by Bid Group to the lowest most competent
and qualified bidder for each Bid Group; and
WHEREAS on August 15, 2018 City staff received responsive bids for Bid Group 4 (Village 6
McMillin and Village 6 OR) from two landscape maintenance companies which included Terracare Associates,
LLC; and
WHEREAS after compilation of the bids staff determined Terracare Associates, LLC to be the lowest
responsive bidder for Bid Group 4; and
WHEREAS staff recommended that the City Council accept the bids and award the landscape
maintenance contract for Bid Group 4 to Terracare Associates, LLC for the 9-month period of October 1, 2018
to June 30, 2019; and
WHEREAS the City Council accepted the bids and awarded the landscape maintenance contract for Bid
Group 4 to Terracare Associates, LLC on September 25, 2018 for the 9-month period of October 1, 2018 to
June 30, 2019; and
WHEREAS the Contractor warrants and represents that it can deliver the services required of Contractor
to City in accordance with the time frames and the terms and conditions of this Agreement.
[End of Recitals. Next Page Starts Obligatory Provisions.]
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?City of Chula Vista Agreement No.: 18086
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
OBLIGATORY PROVISIONS
NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other
good and valuable considerations, the receipt and sufficiency of which the Parties hereby acknowledge, City
and Contractor hereby agree as follows:
1. SERVICES
1.0. Contract Documents. This Agreement consists of the following contract documents (“Contract
Documents”), all of which are incorporated into and made a part of this Agreement as if set forth in full:
1.0.1. This Agreement and all exhibits hereto, and any change orders, amendments, and supplemental
agreements duly authorized and executed by authorized representatives of the City and Contractor.
1.0.2. All permits for the Project.
1.0.3. The City of Chula Vista’s Standard Special Provisions, Standard Special Provisions
(“Greenbook”), Special Provisions, and Standard Plans.
1.0.4. All referenced specifications, plans, and materials.
1.0.5. The Project’s Notice to Bidders, Bid Requirements and Conditions, Bid Form, Special
Provisions – General, Special Provisions – Technical, Bid General Provisions, and Open Space Landscape
Maintenance Standards.
1.0.6. The successful bidder’s bid documents submitted in response to the request for bid, and any
post-bid documentation submitted prior to the award of the Project contract.
1.1. Required Services. Contractor agrees to perform the services, and deliver to City the “Deliverables”
(if any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the
time frames set forth therein, time being of the essence for this Agreement. The services and/or Deliverables
described in Exhibit A shall be referred to herein as the “Required Services.”
1.2. Reductions in Scope of Work. City may independently, or upon request from Contractor/Service
Provider, from time to time, reduce the Required Services to be performed by the Contractor/Service
Provider under this Agreement. Upon doing so, City and Contractor/Service Provider agree to meet and
confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated
with the reduction.
1.3. Additional Services. Subject to compliance with the City’s Charter, codes, policies, procedures and
ordinances governing procurement and purchasing authority, City may request Contractor/Service Provider
provide additional services related to the Required Services (“Additional Services”). If so, City and
Contractor/Service Provider agree to meet and confer in good faith for the purpose of negotiating an
amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the
Additional Services shall be charged and paid consistent with the rates and terms already provided therein.
Once added to Exhibit A, “Additional Services” shall also become “Required Services” for purposes of this
Agreement.
1.4. Standard of Care. Contractor expressly warrants and agrees that any and all hereunder shall be
performed in accordance with the highest standard of care exercised by members of the profession currently
practicing under similar conditions and in similar locations.
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1.5. No Waiver of Standard of Care. Where approval by City is required, it is understood to be
conceptual approval only and does not relieve the Contractor of responsibility for complying with all laws,
codes, industry standards, and liability for damages caused by negligent acts, errors, omissions,
noncompliance with industry standards, or the willful misconduct of the Contractor or its subcontractors.
1.6. Security for Performance. In the event that Exhibit A Section 4 indicates the need for Contractor to
provide additional security for performance of its duties under this Agreement, Contractor shall provide
such additional security prior to commencement of its Required Services in the form and on the terms
prescribed on Exhibit A, or as otherwise prescribed by the City Attorney.
1.7. Compliance with Laws. In its performance of the Required Services, Contractor shall comply with
any and all applicable federal, state and local laws, including the Chula Vista Municipal Code.
1.8. Business License. Prior to commencement of work, Contractor shall obtain a business license from
City.
1.9. Subcontractors. Prior to commencement of any work, Contractor shall submit for City’s information
and approval a list of any and all subcontractors to be used by Contractor in the performance of the
Required Services. Contractor agrees to take appropriate measures necessary to ensure that all
subcontractors and personnel utilized by the Contractor to complete its obligations under this Agreement
comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In
addition, if any subcontractor is expected to fulfill any responsibilities of the Contractor under this
Agreement, Contractor shall ensure that each and every subcontractor carries out the Contractor’s
responsibilities as set forth in this Agreement. The Contractor is fully responsible for the acts and omissions
of all subcontractors of every tier for the Project (as defined in Exhibit A), and for all persons and entities
either directly or indirectly employed by or under the control of any subcontractor in the same manner and
to the same extent that Contractor is responsible for the acts and omissions of persons directly employed by
it or under its control pursuant to this Agreement.
1.9.1. Subcontract Indemnity. Contractor shall require all subcontracts for the Project to obligate
each subcontractor, with respect to the work to be performed under that subcontract, to defend, indemnify,
protect, and hold harmless the Indemnified Parties (as defined in Section 4.1) in the same manner and to the
same extent that Contractor is required to defend, indemnify, protect, and hold harmless the Indemnified
Parties under this Agreement.
1.9.2. Subcontract Insurance. Contractor shall require all subcontracts for the Project to obligate each
subcontractor, with respect to the work to be performed under that subcontract, to procure and maintain
insurance in the same manner and to the same extent that Contractor is required to procure and maintain
insurance under the Agreement, including without limitation naming the City, its officers, officials,
employees, and volunteers as additional insureds.
1.9.3. Subcontractor Licensure. Contractor shall require all subcontractors for the Project to be
appropriately licensed before commencing work for the Project, and to remain licensed for the duration of
their work performed under the subcontract. In the event that a subcontractor is not properly licensed at any
time during the Project, Contractor shall immediately cease payment to that subcontractor and Contractor
shall return to the City any payment made to that subcontractor for work performed during the period for
which the subcontractor was not licensed.
1.9.4. Subcontractor Payments. Contractor shall pay its subcontractors for the Project not later than
seven (7) days after receipt of each progress payment received in accordance with the provision in Section
7108.5 of the California Business and Professions Code. Any delay or postponement of payment may take
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Consultant Name: Terracare Associates, LLC Rev. 10/20/17
place only for good cause and with the City’s prior written approval. Any violation of Section 7108.5 shall
subject the violating Contractor and its respective subcontractors to the penalties, sanctions, and other
remedies of that section.
1.10. Term. This Agreement shall commence on the earlier to occur of the Effective Date or Contractor’s
commencement of the Required Services hereunder, and shall terminate when the Parties have complied
with all their obligations hereunder; provided, however, provisions which expressly survive termination
shall remain in effect.
2. COMPENSATION
2.1. General. For satisfactory performance of the Required Services, City agrees to compensate
Contractor in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and
payment are set forth in this Section 2.
2.2. Detailed Invoicing. Contractor agrees to provide City with a detailed invoice for services performed
each month, within thirty (30) days of the end of the month in which the services were performed, unless
otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date
of the Agreement. All charges must be presented in a line item format with each task separately explained in
reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced
to date, and the remaining amount available under any approved budget. Contractor must obtain prior
written authorization from City for any fees or expenses that exceed the estimated budget.
2.3. Payment to Contractor. Upon receipt of a properly prepared invoice and confirmation that the
Required Services detailed in the invoice have been satisfactorily performed, City shall pay Contractor for
the invoice amount within thirty (30) days. Payment shall be made in accordance with the terms and
conditions set forth in Exhibit A and section 2.4, below. At City’s discretion, invoices not timely submitted
may be subject to a penalty of up to five percent (5%) of the amount invoiced.
2.4. Retention Policy. City shall retain ten percent (10%) of the amount due for Required Services
detailed on each invoice (the “holdback amount”). Upon City review and determination of Project
Completion, the holdback amount will be issued to Contractor.
2.5. Reimbursement of Costs. City may reimburse Contractor’s out-of-pocket costs incurred by
Contractor in the performance of the Required Services if negotiated in advance and included in Exhibit A.
Unless specifically provided in Exhibit A, Contractor shall be responsible for any and all out-of-pocket costs
incurred by Contractor in the performance of the Required Services.
2.6. Exclusions. City shall not be responsible for payment to Contractor for any fees or costs in excess of
any agreed upon budget, rate, or other maximum amount(s) provided for in Exhibit A. City shall also not be
responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors,
omissions, negligence or acts of willful misconduct of Contractor, its agents, employees, or subcontractors.
2.7. Payment Not Final Approval. Contractor understands and agrees that payment to the Contractor or
reimbursement for any Contractor costs related to the performance of Required Services does not constitute
a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for
payment under this Agreement, nor does it constitute a waiver of any violation by Contractor of the terms of
this Agreement. If City determines that Contractor is not entitled to receive any amount of compensation
already paid, City will notify Contractor in writing and Contractor shall promptly return such amount.
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3. INSURANCE
3.1. Required Insurance. Contractor must procure and maintain, during the period of performance of
Required Services under this Agreement, and for twelve months after completion of Required Services, the
policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this reference
(the “Required Insurance”). The Required Insurance shall also comply with all other terms of this Section.
3.2. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions relating to the
Required Insurance must be disclosed to and approved by City in advance of the commencement of work.
3.3. Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact
business in the State of California with a current A.M. Best’s rating of A V or better, or, if insurance is
placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus
Lines Insurers (LESLI) with a current A.M. Best’s rating of no less than A X. For Workers’ Compensation
Insurance, insurance issued by the State Compensation Fund is also acceptable.
3.4. Subcontractors. Contractor must include and/or require to be included all subcontractors of every tier
as insureds under its policies and/or furnish separate certificates and endorsements demonstrating separate
coverage for those not under its policies. Any separate coverage for subcontractors of every tier must also
comply with the terms of this Agreement.
3.5. Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as
additional insureds with respect to any policy of general liability, automobile, or pollution insurance
specified as required in Exhibit B or as may otherwise be specified by City’s Risk Manager. The general
liability additional insured coverage must be provided in the form of an endorsement to the Contractor’s
insurance using ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude
Products/Completed Operations coverage.
3.6. General Liability Coverage to be “Primary”. Contractor’s general liability coverage must be primary
insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance
or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate
from the insurance provided by Contractor and in no way relieves Contractor from its responsibility to
provide insurance.
3.7. No Cancellation. No Required Insurance policy may be canceled by either Party during the required
insured period under this Agreement, except after thirty days’ prior written notice to the City by certified
mail, return receipt requested. Prior to the effective date of any such cancellation Contractor must procure
and put into effect equivalent coverage(s).
3.8. Waiver of Subrogation. Contractor’s insurer(s) will provide a Waiver of Subrogation in favor of the
City for each Required Insurance policy under this Agreement. In addition, Contractor waives any right it
may have or may obtain to subrogation for a claim against City.
3.9. Verification of Coverage. Prior to commencement of any work, Contractor shall furnish City with
original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that
Contractor has obtained the Required Insurance in compliance with the terms of this Agreement. The words
“will endeavor” and “but failure to mail such notice shall impose no obligation or liability of any kind upon
the company, its agents, or representatives” or any similar language must be deleted from all certificates.
The required certificates and endorsements should otherwise be on industry standard forms. The City
reserves the right to require, at any time, complete, certified copies of all required insurance policies,
including endorsements evidencing the coverage required by these specifications.
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Consultant Name: Terracare Associates, LLC Rev. 10/20/17
3.10. Claims-Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution
Liability and/or Errors & Omissions coverage are required and are provided on a claims-made form, the
following requirements also apply:
a. The “Retro Date” must be shown, and must be before the date of this Agreement or the
beginning of the work required by this Agreement.
b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5)
years after completion of the work required by this Agreement.
c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form
with a “Retro Date” prior to the effective date of this Agreement, the Contractor/Service Provider must
purchase “extended reporting” coverage for a minimum of five (5) years after completion of the work
required by this Agreement.
d. A copy of the claims reporting requirements must be submitted to the City for review.
3.11. Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed
to limit the Contractor/Service Provider’s obligations under this Agreement, including Indemnity.
3.12. Additional Coverage. To the extent that insurance coverage provided by Contractor maintains higher
limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher
limits maintained.
4. INDEMNIFICATION
4.1. General. To the maximum extent allowed by law, Contractor shall protect, defend, indemnify and
hold harmless City, its elected and appointed officers, agents, employees and volunteers (collectively,
“Indemnified Parties”), from and against any and all claims, demands, causes of action, costs, expenses,
(including reasonable attorneys’ fees and court costs), liability, loss, damage or injury, in law or equity, to
property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts,
omissions, negligence, or willful misconduct of Contractor, its officials, officers, employees, agents, and
contractors, arising out of or in connection with the performance of the Required Services, the results of
such performance, or this Agreement. This indemnity provision does not include any claims, damages,
liability, costs and expenses arising from the sole negligence, active negligence, or willful misconduct of the
Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be
caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in
combination with the active or passive negligent acts or omissions of the Contractor, its employees, agents
or officers, or any third party.
4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the
forgoing, if the services provided under this Agreement are design professional services, as defined by
California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity
obligation under Section 1, above, shall be limited to the extent required by California Civil Code section
2782.8.
4.3. Costs of Defense and Award. Included in Contractor’s obligations under this Section 4 is
Contractor’s obligation to defend, at Contractor’s own cost, expense and risk, any and all suits, actions or
other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties.
Subject to the limitations in this Section 4, Contractor shall pay and satisfy any judgment, award or decree
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that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses
and costs incurred by any of them.
4.4. Contractor/Service Provider’s Obligations Not Limited or Modified. Contractor’s obligations under
this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by
any prior or subsequent declaration by the Contractor. Furthermore, Contractor’s obligations under this
Section 4 shall in no way limit, modify or excuse any of Contractor’s other obligations or duties under this
Agreement.
4.5. Enforcement Costs. Contractor/Service Provider agrees to pay any and all costs City incurs in
enforcing Contractor’s obligations under this Section 4.
4.6. Survival. Contractor’s obligations under this Section 4 shall survive the termination of this
Agreement.
5.FINANCIAL INTERESTS OF CONTRACTOR/SERVICE PROVIDER.
5.1. Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code
require certain government officials and Contractor performing work for government agencies to publicly
disclose certain of their personal assets and income using a Statement of Economic Interests form (Form
700). In order to assure compliance with these requirements, Contractor shall comply with the disclosure
requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference.
5.2. Disclosures; Prohibited Interests. Independent of whether Contractor is required to file a Form 700,
Contractor warrants and represents that it has disclosed to City any economic interests held by Contractor,
or its employees or subcontractors who will be performing the Required Services, in any real property or
project which is the subject of this Agreement. Contractor warrants and represents that it has not employed
or retained any company or person, other than a bona fide employee or approved subcontractor working
solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants and represents that it
has not paid or agreed to pay any company or person, other than a bona fide employee or approved
subcontractor working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other
consideration contingent upon or resulting from the award or making of this Agreement. Contractor further
warrants and represents that no officer or employee of City has any interest, whether contractual, non-
contractual, financial or otherwise, in this transaction, the proceeds hereof, or in the business of
Contractor/Service Provider or Contractor’s subcontractors. Contractor further agrees to notify City in the
event any such interest is discovered whether or not such interest is prohibited by law or this Agreement.
For breach or violation of any of these warranties, City shall have the right to rescind this Agreement
without liability.
6. REMEDIES
6.1. Termination for Cause. If for any reason whatsoever Contractor shall fail to perform the Required
Services under this Agreement in a proper or timely manner, or if Contractor shall violate any of the other
covenants, agreements or conditions of this Agreement (each a “Default”), in addition to any and all other
rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to
terminate this Agreement by giving five (5) days written notice to Contractor. Such notice shall identify the
Default and the Agreement termination date. If Contractor notifies City of its intent to cure such Default
prior to City’s specified termination date, and City agrees that the specified Default is capable of being
cured, City may grant Contractor up to ten (10) additional days after the designated termination date to
effectuate such cure. In the event of a termination under this Section 6.1, Contractor shall immediately
provide City any and all ”Work Product” (defined in Section 7 below) prepared by Contractor as part of the
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Required Services. Such Work Product shall be City’s sole and exclusive property as provided in Section 7
hereof. Contractor may be entitled to compensation for work satisfactorily performed prior to Contractor’s
receipt of the Default notice; provided, however, in no event shall such compensation exceed the amount
that would have been payable under this Agreement for such work, and any such compensation shall be
reduced by any costs incurred or projected to be incurred by City as a result of the Default.
6.2. Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement, or
any portion of the Required Services, at any time and for any reason, with or without cause, or for no reason
by giving specific written notice to Contractor/Service Provider of such termination or suspension at least
fifteen (15) days prior to the effective date thereof. Upon receipt of such notice, Contractor shall
immediately cease all work under the Agreement and promptly deliver all “Work Product” (defined in
Section 7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in
Section 7 hereof. Contractor shall be entitled to receive just and equitable compensation for this Work
Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily
performed as of the date of the termination/suspension notice plus any additional remaining Required
Services requested or approved by City in advance that would maximize City’s value under the Agreement.
6.3. Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this
Section, Contractor hereby expressly waives any and all claims for damages or compensation as a result of
such termination except as expressly provided in this Section 6.
6.4. Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising
out of this Agreement against City unless a claim has first been presented in writing and filed with City and
acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal
Code, as same may be amended, the provisions of which, including such policies and procedures used by
City in the implementation of same, are incorporated herein by this reference. Upon request by City,
Contractor shall meet and confer in good faith with City for the purpose of resolving any dispute over the
terms of this Agreement.
6.5. Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the
laws of the State of California. Any action arising under or relating to this Agreement shall be brought only
in San Diego County, State of California.
6.6. Service of Process. Contractor agrees that it is subject to personal jurisdiction in California. If
Contractor/Service Provider is a foreign corporation, limited liability company, or partnership that is not
registered with the California Secretary of State, Contractor irrevocably consents to service of process on
Contractor/Service Provider by first class mail directed to the individual and address listed under “For Legal
Notice,” in section 1.B. of Exhibit A to this Agreement, and that such service shall be effective five days
after mailing.
7. OWNERSHIP AND USE OF WORK PRODUCT
All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems, and any other
materials or properties produced in whole or in part under this Agreement in connection with the
performance of the Required Services (collectively “Work Product”) shall be the sole and exclusive
property of City. No such Work Product shall be subject to private use, copyrights, or patent rights by
Contractor in the United States or in any other country without the express, prior written consent of City.
City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent,
in whole or in part, any such Work Product, without requiring any permission of Contractor, except as may
be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws.
With respect to computer files containing data generated as Work Product, Contractor shall make available
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to City, upon reasonable written request by City, the necessary functional computer software and hardware
for purposes of accessing, compiling, transferring, and printing computer files.
8. GENERAL PROVISIONS
8.1. Reserved.
8.2. Assignment. City would not have entered into this Agreement but for Contractor’s unique qualifications
and traits. Contractor shall not assign any of its rights or responsibilities under this Agreement, nor any part
hereof, without City’s prior written consent, which City may grant, condition, or deny in its sole discretion.
8.3. Authority. The person(s) executing this Agreement for Contractor warrants and represents that they
have the authority to execute same on behalf of Contractor and to bind Contractor to its obligations
hereunder without any further action or direction from Contractor or any board, principal, or officer thereof.
8.4. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which shall constitute one Agreement after each Party has signed such a counterpart.
8.5. Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements
expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject
matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein
by reference. All prior or contemporaneous agreements, understandings, representations, warranties and
statements, oral or written, are superseded.
8.6. Record Retention. During the course of the Agreement and for three (3) years following completion
of the Required Services, Contractor agrees to maintain, intact and readily accessible, all data, documents,
reports, records, contracts, and supporting materials relating to the performance of the Agreement, including
accounting for costs and expenses charged to City, including such records in the possession of
subcontractors of every tier.
8.7. Further Assurances. The Parties agree to perform such further acts and to execute and deliver such
additional documents and instruments as may be reasonably required in order to carry out the provisions of
this Agreement and the intentions of the Parties.
8.8. Independent Contractor. Contractor is and shall at all times remain as to City a wholly independent
contractor. Neither City nor any of its officers, employees, agents, or volunteers shall have control over the
conduct of Contractor/Service Provider or any of Contractor’s officers, employees, or agents (“Contractor
Related Individuals”), except as set forth in this Agreement. No Contractor Related Individuals shall be
deemed employees of City, and none of them shall be entitled to any benefits to which City employees are
entitled, including but not limited to overtime, retirement benefits, worker's compensation benefits, injury
leave, or other leave benefits. Furthermore, City will not withhold state or federal income tax, social security
tax or any other payroll tax with respect to any Contractor Related Individuals; instead, Contractor/Service
Provider shall be solely responsible for the payment of same and shall hold the City harmless with respect to
same. Contractor shall not at any time or in any manner represent that it or any of its Contractor Related
Individuals are employees or agents of City. Contractor shall not incur or have the power to incur any debt,
obligation, or liability whatsoever against City, or bind City in any manner.
8.9. Notices. All notices, demands or requests provided for or permitted to be given pursuant to this
Agreement must be in writing. All notices, demands, and requests to be sent to any Party shall be deemed to
have been properly given or served if personally served or deposited in the United States mail, addressed to
such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified
2018-09-25 Agenda Packet Page 124
??City of Chula Vista Agreement No.: 18086
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or
otherwise provided in writing.
8.10. No Waiver. The failure of City to insist, in any one or more instances, upon the performance of any
provision of the Agreement, or to exercise any right in the Agreement, shall not be construed as a waiver or
relinquishment of such provisions or rights. Any waiver of any breach of this Agreement shall not be held to
be a waiver of any other or subsequent breach. Any waiver issued by the City of any provision of the
Agreement shall only be effective if issued in writing by the City and shall be specific and apply only to the
particular matter concerned and not to other similar or dissimilar matters.
8.11. No Limitation. The duties and obligations imposed by this Agreement and the rights and remedies
available hereunder to the parties hereto, and, in particular but without limitation, the warranties, guarantees,
and obligations imposed upon the Agreement or by this Agreement and all of the rights and remedies
available to City thereunder, are in addition to, and are not to be construed in any way as a limitation of, any
rights and remedies imposed or available by laws, regulations, or codes, by special warranty or guarantee or
by other provisions of the Contract Documents.
8.12. Severability. If any term or provision or portion of a term or provision of this 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.
(End of page. Next page is signature page.)
2018-09-25 Agenda Packet Page 125
??City of Chula Vista Agreement No.: 18086
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
SIGNATURE PAGE
LANDSCAPE MAINTENANCE SERVICES AGREEMENT
IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and Contractor
agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and
consent to be bound by same, and that they are freely entering into this Agreement as of the Effective Date.
Terracare Associates, LLC CITY OF CHULA VISTA
BY:________________________________ BY: ________________________________
SERGIO HERNANDEZ MARY CASILLAS SALAS
REGION MANAGER MAYOR
ATTEST
BY:
________________________________
Kerry K. Bigelow, MMC
City Clerk
APPROVED AS TO FORM
BY: ________________________________
GLEN R. GOOGINS
CITY ATTORNEY
2018-09-25 Agenda Packet Page 126
??City of Chula Vista Agreement No.: 18086
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
EXHIBIT A
SCOPE OF WORK AND PAYMENT TERMS
1. Contact People for Contract Administration and Legal Notice
A. City Contract Administration:
Iracsema Quilantan
Director of Public Works
1800 Maxwell Road, Chula Vista, CA 91911
619-397-6066
IQuilantan@chulavistaca.gov
For Legal Notice Copy to:
City of Chula Vista
City Attorney
276 Fourth Avenue, Chula Vista, CA 91910
619-691-5037
CityAttorney@chulavistaca.gov
B. Contractor Contract Administration:
Terracare Associates, LLCMonarch Landscape Companies
Sergio Hernandez, Region Manager
550 S. Hope St., Suite 1675, Los Angeles, CA 90071
310-367-0221
sergio.hernandez@monarchlandscape.com
For Legal Notice Copy to:
Myesha Rozar, Terracare Associates Branch Administrator
1545 Lake Drive, Encinitas, CA 92024
760-633-2200
myesha.rozar@monarchlandscape.com
2. Required Services
A. General Description:
The Contractor will furnish all work, materials, equipment, services, and labor necessary to fully complete
landscape maintenance services of Chula Vista’s Open Space Bid Group 4 (the “Project”) in strict
accordance with the Contract Documents.
B. Detailed Description:
The Contractor will perform and complete landscape maintenance services, and all other Required Services
at various locations throughout the City’s Open Space at the unit prices contained in Contractor’s submitted
bid and this Agreement in strict accordance with the Contract Documents.
3. Term:In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin October
1, 2018 and end on June 30, 2019 for completion of all Required Services.
2018-09-25 Agenda Packet Page 127
??City of Chula Vista Agreement No.: 18086
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
4. Compensation:
*Disclosure:
Payment. As full compensation in consideration of completion of the Required Services in strict accordance
with the Contract Documents and in consideration of the fulfillment of all of the Contractor’s obligations under
the Contract Documents, the City shall pay the Contractor for the quantity of line item of work actually
performed in strict accordance with the Contract Documents. The City’s obligation to pay the Contractor under
this Agreement is subject to and may be offset by charges that may apply to the Contractor under this
Agreement.
5. Special Provisions:
Security for Performance: Contractor shall procure Performance and Labor and Material Bonds for the Work
that are to be issued by a Surety authorized to transact such business in the State of California, be listed as
approved by the United States Department of Treasury Circular 570, and whose Underwriting Limitation is
sufficient to issue bonds in the amount required by any contract entered into pursuant to this Notice. Approved
listing can be obtained through the United States Department of Treasury’s website
www.fiscal.treasury.gov/fsreports/ref/suretyBnd/c570.htm. Any renewal certificates required during the course
of the Agreement must be renewed and received by the City within fifteen (15) days prior to expiration and
must meet the same criteria. No substitutions shall be allowed.
DIR/Prevailing Wages. No Contractor or subcontractor shall be qualified to bid on, be listed in a bid proposal,
subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any
contract for public work, unless currently registered with the Department of Industrial Relations (DIR) and
qualified to perform public work pursuant to Labor Code section 1725.5. No Contractor or subcontractor may
be awarded a contract for public work on a public works project unless registered with the DIR pursuant to
Labor Code section 1725.5. The Work is subject to compliance monitoring and enforcement by the Department
of Industrial Relations.
Contractor and its subcontractors are required by bid specifications and California Labor Code sections 1771
and 1774 to pay prevailing wages ("Prevailing Wage Rates") to persons employed by them for work in a
covered work classification under this Agreement. In accordance with the provisions of Section 1773 of the
Labor Code of the State of California, the City has ascertained the general prevailing wage scales are applicable
to the work to be done. The prevailing wage scales are those determined by the DIR. If Contractor intends to
use a craft or classification not shown on the general prevailing wage rates determinations, it may be required to
Item Num Section Item Code Description Unit Qtty Monthly Price Monthly Total
1 Main Bid Grp 4 Village 6 McMillin 18.77 acres Code 1- 4.11 acres Mthly 9 $9,000.00 $81,000.00
2 Main Bid Grp 4 Village 6 McMillin 18.77 acres Code 2- 6.50 acres Mthly 9 $9,000.00 $81,000.00
3 Main Bid Grp 4 Village 6 McMillin 18.77 acres Code 3- 7.93 acres Mthly 9 $3,000.00 $27,000.00
4 Main Bid Grp 4 Village 6 McMillin 18.77 acres Code 4- 0.23 acres Mthly 9 $1,000.00 $9,000.00
5 Main Bid Grp 4 Village 6 McMillin 18.77 acres Code 5- 0 acres Mthly 9 $0.00 $0.00
6 Main Bid Grp 4 Village 6 McMillin 18.77 acres 350 Tree Trims One time 1 $33,600.00 $33,600.00
7 Main Bid Grp 4 Village 6 McMillin 18.77 acres Fertilizer Per schedule 1 $4,400.00 $4,400.00
$236,000.00
8 Main Bid Grp 4 Village 6 Otay Ranch 16.4 acres Code 1- 6.68 acres Mthly 9 $9,000.00 $81,000.00
9 Main Bid Grp 4 Village 6 Otay Ranch 16.4 acres Code 2- 0.95 acres Mthly 9 $4,000.00 $36,000.00
10 Main Bid Grp 4 Village 6 Otay Ranch 16.4 acres Code 3- 8.52 acres Mthly 9 $4,000.00 $36,000.00
11 Main Bid Grp 4 Village 6 Otay Ranch 16.4 acres Code 4- 0.25 acres Mthly 9 $1,000.00 $9,000.00
12 Main Bid Grp 4 Village 6 Otay Ranch 16.4 acres Code 5- 0 acres Mthly 9 $0.00 $0.00
13 Main Bid Grp 4 Village 6 Otay Ranch 16.4 acres 175 Tree Trims One time 1 $17,850.00 $17,850.00
14 Main Bid Grp 4 Village 6 Otay Ranch 16.4 acres Fertilizer Per schedule 1 $3,125.00 $3,125.00
$182,975.00
$418,975.00
2018-09-25 Agenda Packet Page 128
??City of Chula Vista Agreement No.: 18086
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
pay the wage rate of that craft or classification most closely related to it as shown in the general wage rates
determinations effective at the time of the call for bids.
Non-Collusion Affidavit. Prior to commencing the Project, Contractor shall provide a fully executed and
properly notarized Non-Collusion Affidavit, attached hereto and incorporated herein as Exhibit D.
Workers’ Compensation Insurance Declaration. Prior to commencing the Project, Contractor shall provide a
fully executed and properly notarized Workers’ Compensation Insurance Declaration, attached hereto and
incorporated herein as Exhibit E.
OPTIONAL (check if applicable):
⾙ Permitted Sub-Contractor/Service Providers: “None”
2018-09-25 Agenda Packet Page 129
??City of Chula Vista Agreement No.: 18086
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
EXHIBIT B
INSURANCE REQUIREMENTS
Contractor shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the
following types and minimum amounts of insurance, as indicated by checking the applicable boxes (x):
Type of Insurance Minimum Amount Form
⾙ General Liability:
Including products and
completed operations,
personal and
advertising injury
$2,000,000 per occurrence for
bodily injury, personal injury
(including death), and property
damage. If Commercial General
Liability insurance with a general
aggregate limit is used, either the
general aggregate limit must apply
separately to this Agreement or the
general aggregate limit must be
twice the required occurrence limit
Additional Insured Endorsement
or Blanket AI Endorsement for
City*
Waiver of Recovery Endorsement
Insurance Services Office Form
CG 00 01
*Must be primary and must not
exclude Products/Completed
Operations
⾙ Automobile Liability $1,000,000 per accident for bodily
injury, including death, and
property damage
Insurance Services Office Form
CA 00 01
Code 1-Any Auto
Code 8-Hired
Code 9-Non Owned
⾙ Workers’
Compensation
Employer’s Liability
$1,000,000 each accident
$1,000,000 disease policy limit
$1,000,000 disease each employee
Waiver of Recovery Endorsement
2018-09-25 Agenda Packet Page 130
??City of Chula Vista Agreement No.: 18086
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
EXHIBIT C
CONTRACTOR CONFLICT OF INTEREST DESIGNATION
The Political Reform Act1 and the Chula Vista Conflict of Interest Code2 (“Code”) require designated state and local government officials, including some Contractor/Service Providers, to make certain public disclosures
using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, Contractors designated to file the Form 700 are also required to comply with certain ethics training requirements.3
⾙ A. Contractor IS a corporation or limited liability company and is therefore EXCLUDED4 from disclosure.
☐ B. Contractor is NOT a corporation or limited liability company and disclosure designation is as follows:
APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES
(Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.)
Name Email Address Applicable Designation
☐A. Full Disclosure
☐B. Limited Disclosure (select one or more of the
categories under which the Contractor shall file):
☐1. ☐2. ☐3. ☐4. ☐5. ☐6. ☐7.
Justification:
☐C. Excluded from Disclosure
1.Required FilersEach individual who will be performing services for the City pursuant to the Agreement and who meets the definition of “Contractor/Service Provider,” pursuant to FPPC Regulation 18700.3, must file a Form 700.
2.Required Filing DeadlinesEach initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement.
3. Filing DesignationThe City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Contractor/Service Provider will provide. Notwithstanding this designation or anything in the Agreement, the Contractor/Service Provider is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2.
Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written
determination of the Contractor’s requirement to comply with the disclosure requirements set forth in the Code.
Completed by: Sam Oludunfe, Open Space Manager
1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704.
2 Chula Vista Municipal Code §§2.02.010-2.02.040.
3 Cal. Gov. Code §§53234, et seq.
4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261; FPPC Reg.
18700.3 (Consultant defined as an “individual” who participates in making a governmental decision; “individual” does not include
corporation or limited liability company).
2018-09-25 Agenda Packet Page 131
??City of Chula Vista Agreement No.: 18086
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
EXHIBIT D
NON-COLLUSION AFFIDAVIT
To the City of Chula Vista, Director of Engineering & Capital Projects:
The undersigned, in submitting a bid for performing the following work by Contract being duly sworn, deposes and says:
That he/she has not, either directly or indirectly entered into any agreement, participated in any collusion, or otherwise
taken any action in restraint of free competitive bidding and has not accepted any deposit from any subcontractor or
material supplier through any bid depository, the by-laws, rules, and regulations of which prohibit or prevent the
Contractor from considering any bid from any subcontractor or material supplier, which is not processed through said bid
depository, or which prevent any subcontractor or material supplier from bidding to any Contractor who does not use the
facilities or accept bids from or through such bid depository in connection with this Contract.
_____________________________________
Business Address Company
_____________________________________
Place of Residence Signature of Bidder
(Attach Proper Notarization)
2018-09-25 Agenda Packet Page 132
??City of Chula Vista Agreement No.: 18086
Consultant Name: Terracare Associates, LLC Rev. 10/20/17
EXHIBIT E
WORKERS’ COMPENSATION INSURANCE DECLARATION
Date:________________________
I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against
liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that code, and I
will comply with such provisions before commencing the performance of the work of this Contract.
_____________________________
Signature
_____________________________
Contractor
_____________________________
State Contractor's License No.
_____________________________
Address
_____________________________
City/State
_____________________________
Phone Number
(Attach Proper Notarization)
2018-09-25 Agenda Packet Page 133
RESOLUTION NO. 2018-_____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING BIDS AND AWARDING A
LANDSCAPE MAINTENANCE CONTRACT BETWEEN THE
CITY AND AZTEC LANDSCAPING, INC. FOR LANDSCAPE
MAINTENANCE SERVICES IN BID GROUP 1, OPEN SPACE
DISTRICT 20, ZONES 4, 5, AND 6 IN THE AMOUNT OF
$433,882, AUTHORIZING THE MAYOR TO EXECUTE THE
CONTRACT, AND APPROPRIATING FUNDS
ACCORDINGLY
WHEREAS the City administers and maintains 36 Open Space Districts, Maintenance
Community Facilities Districts, and their associated zones (collectively the “Districts”) and
levies an annual assessment on property owners within each district to provide funding for
maintenance of common area spaces; and
WHEREAS the City contracts with landscape firms to provide landscape maintenance
services for the Districts; and
WHEREAS the landscape maintenance contracts have lapsed in 11 Districts, namely:
Districts 7, 14; 15; 20 Zones 2, 3, 4, 5, and 6; 24; Village 6 McMillin; and Village 6 OR; and I-
805 DAR West and Village 2 (New Development) are newly acquired landscape maintenance
areas; and
WHEREAS on July 27, 2018 City staff issued a Request for Proposals for landscape
maintenance services for common area spaces within the 13 Districts; and
WHEREAS in the Request for Proposal, the common area spaces within the 13 Districts
were placed into four Bid Groups; and
WHEREAS a pre-bid meeting was held on August 1, 2018 to review and clarify bid
requirements and to emphasize that the bids would be evaluated and contracts awarded by Bid
Group to the lowest most competent and qualified bidder for each Bid Group; and
WHEREAS City staff received responsive bids for Bid Group 1 from two landscape
maintenance companies on August 15, 2018 and opened the following bids:
Serial # Contractor 9-month Bid Amount
1 Aztec Landscaping, Inc. $512,397
2 Terracare Associates, LLC $540,150
WHEREAS, due to budget constraints, the City removed District 20 Zones 2 and 3 from
the scope of work in Bid Group 1;
2018-09-25 Agenda Packet Page 134
WHEREAS, after the reduction in scope, Aztec Landscaping, Inc. remained the lowest
responsive bidder for this group with a final total bid amount of $433,882.
WHEREAS, the fiscal year 2019 budget did not include sufficient funds for the updated
contract and a budget appropriation of $27,200 from the available fund balance of this fund is
recommended.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it accepts bids and awards the landscape maintenance contract for Bid Group 1, as reduced,
to Aztec Landscaping, Inc. in the amount of $433,882.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it
approves the City of Chula Vista Contractor Services Agreement With Aztec Landscaping, Inc.
To Provide Landscape Maintenance Services, in the form presented, with such minor
modifications as may be required or approved by the City Attorney, a copy of which shall be
kept on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute the
same.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it
approves an appropriation of $27,200 from the available fund balance to the Supplies and
Services expense category of the Open Space District 20 (Zone 4) fund.
Presented by Approved as to form by
_________________________ __________________________
Iracsema Quilantan Glen R. Googins
Director of Public Works City Attorney
2018-09-25 Agenda Packet Page 135
RESOLUTION NO. 2018-_____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ACCEPTING BIDS AND AWARDING A LANDSCAPE
MAINTENANCE CONTRACT BETWEEN THE CITY AND AZTEC
LANDSCAPING, INC. FOR LANDSCAPE MAINTENANCE
SERVICES IN BID GROUP 2 OPEN SPACE DISTRICTS 14, 15, AND
24 IN THE AMOUNT OF $132,571
WHEREAS the City administers and maintains 36 Open Space Districts, Maintenance
Community Facilities Districts, and their associated zones (collectively the “Districts”) and
levies an annual assessment on property owners within each district to provide funding for
maintenance of common area spaces; and
WHEREAS the City contracts with landscape firms to provide landscape maintenance
services for the Districts; and
WHEREAS the landscape maintenance contracts have lapsed in 11 Districts, namely:
Districts 7, 14; 15; 20 Zones 2, 3, 4, 5, and 6; 24; Village 6 McMillin; and Village 6 OR; and I-
805 DAR West and Village 2 (New Development) are newly acquired landscape maintenance
areas; and
WHEREAS on July 27, 2018 City staff issued a Request for Proposals for landscape
maintenance services for common area spaces within the 13 Districts; and
WHEREAS in the Request for Proposal, the common area spaces within the 13 Districts
were placed into four Bid Groups; and
WHEREAS a pre-bid meeting was held on August 1, 2018 to review and clarify bid
requirements and to emphasize that the bids would be evaluated and contracts awarded by Bid
Group to the lowest most competent and qualified bidder for each Bid Group; and
WHEREAS City staff received responsive bids for Bid Group 2 from two landscape
maintenance companies on August 15, 2018 and opened the following bids:
Serial # Contractor 9-month Bid Amount
1 Aztec Landscaping, Inc. $135,451.00
2 Terracare Associates, LLC $150,705.00
WHEREAS, the City lowered the service levels for District 24 due to budgetary
constraints; and
WHEREAS, after the reduction in scope, Aztec Landscaping, Inc. remained the lowest
responsive bidder for this group with a final bid amount of $132,571.
2018-09-25 Agenda Packet Page 136
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it accepts bids and awards the landscape maintenance contract for Bid Group 2, as reduced,
to Aztec Landscaping, Inc. in the amount of $132,571.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it
approves the City of Chula Vista Contractor Services Agreement With Aztec Landscaping, Inc.
To Provide Landscape Maintenance Services, in the form presented, with such minor
modifications as may be required or approved by the City Attorney, a copy of which shall be
kept on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute the
same.
Presented by Approved as to form by
_________________________ __________________________
Iracsema Quilantan Glen R. Googins
Director of Public Works City Attorney
2018-09-25 Agenda Packet Page 137
RESOLUTION NO. 2018-_____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ACCEPTING BIDS AND AWARDING A LANDSCAPE
MAINTENANCE CONTRACT BETWEEN THE CITY AND
TERRACARE ASSOCIATES, LLC. FOR LANDSCAPE
MAINTENANCE SERVICES IN BID GROUP 3 COMMUNITY
FACILITIES DISTRICT 13-M OTAY RANCH VILLAGE 2 (NEW
DEVELOPMENT) IN THE AMOUNT OF $120,671, AND
APPROPRIATING FUNDS ACCORDINGLY
WHEREAS the City administers and maintains 36 Open Space Districts, Maintenance
Community Facilities Districts, and their associated zones (collectively the “Districts”) and
levies an annual assessment on property owners within each district to provide funding for
maintenance of common area spaces; and
WHEREAS the City contracts with landscape firms to provide landscape maintenance
services for the Districts; and
WHEREAS the landscape maintenance contracts have lapsed in 11 Districts, namely:
Districts 7, 14; 15; 20 Zones 2, 3, 4, 5, and 6; 24; Village 6 McMillin; and Village 6 OR; and I-
805 DAR West and Village 2 (New Development) are newly acquired landscape maintenance
areas; and
WHEREAS on July 27, 2018 City staff issued a Request for Proposals for landscape
maintenance services for common area spaces within the 13 Districts; and
WHEREAS in the Request for Proposal, the common area spaces within the 13 Districts
were placed into four Bid Groups; and
WHEREAS a pre-bid meeting was held on August 1, 2018 to review and clarify bid
requirements and to emphasize that the bids would be evaluated and contracts awarded by Bid
Group to the lowest most competent and qualified bidder for each Bid Group; and
WHEREAS City staff received responsive bids for Bid Group 3 from two landscape
maintenance companies on August 15, 2018 and opened the following bids:
Serial # Contractor 9-month Bid Amount
1 Terracare Associates, LLC $304,374
2 Aztec Landscaping, Inc.$364,220
WHEREAS, the City removed District 7 and DAR West from the Bid Group 3 scope of
work due to budget constraints; and
2018-09-25 Agenda Packet Page 138
WHEREAS, after the reduction in scope, Terracare Associates, LLC remained the lowest
responsive bidder for this group and the final bid amount for the remaining district (CFD 13-M
Otay Ranch Village 2) was $120,671; and
WHEREAS, the fiscal year 2019 budget did not include a budget for the new area and a
budget appropriation of $125,000 from the available fund balance of this fund is recommended.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it accepts bids and awards the landscape maintenance contract for Bid Group 3, as reduced,
to Terracare Associates, LLC in the amount of $120,671.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it
approves the City of Chula Vista Contractor Services Agreement With Terracare Associates,
LLC To Provide Landscape Maintenance Services, in the form presented, with such minor
modifications as may be required or approved by the City Attorney, a copy of which shall be
kept on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute the
same.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it
approves an appropriation of $125,000 from the available fund balance to the Supplies and
Services expense category of the CFD 13 Otay Ranch Village 2 fund.
Presented by Approved as to form by
_________________________ __________________________
Iracsema Quilantan Glen R. Googins
Director of Public Works City Attorney
2018-09-25 Agenda Packet Page 139
RESOLUTION NO. 2018-_____
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA
VISTA ACCEPTING BIDS AND AWARDING A LANDSCAPE
MAINTENANCE CONTRACT BETWEEN THE CITY AND
TERRACARE ASSOCIATES, LLC. FOR LANDSCAPE
MAINTENANCE SERVICES IN BID GROUP 4 COMMUNITY
FACILITIES DISTRICT 8M OTAY RANCH VILLAGE 6 MCMILLIN
(VILLAGE 6 MC) AND COMMUNITY FACILITIES DISTRICT 8M
OTAY RANCH VILLAGE 6 OTAY RANCH (VILLAGE 6 OR) IN THE
AMOUNT OF $418,975, AND APPROPRIATING FUNDS
ACCORDINGLY
WHEREAS the City administers and maintains 36 Open Space Districts, Maintenance
Community Facilities Districts, and their associated zones (collectively the “Districts”) and
levies an annual assessment on property owners within each district to provide funding for
maintenance of common area spaces; and
WHEREAS the City contracts with landscape firms to provide landscape maintenance
services for the Districts; and
WHEREAS the landscape maintenance contracts have lapsed in 11 Districts, namely:
Districts 7, 14; 15; 20 Zones 2, 3, 4, 5, and 6; 24; Village 6 McMillin; and Village 6 OR; and I-
805 DAR West and Village 2 (New Development) are newly acquired landscape maintenance
areas; and
WHEREAS on July 27, 2018 City staff issued a Request for Proposals for landscape
maintenance services for common area spaces within the 13 Districts; and
WHEREAS in the Request for Proposal, the common area spaces within the 13 Districts
were placed into four Bid Groups; and
WHEREAS a pre-bid meeting was held on August 1, 2018 to review and clarify bid
requirements and to emphasize that the bids would be evaluated and contracts awarded by Bid
Group to the lowest most competent and qualified bidder for each Bid Group; and
WHEREAS City staff received responsive bids for Bid Group 4 from two landscape
maintenance companies on August 15, 2018 and opened the following bids:
Serial # Contractor 9-month Bid Amount
1 Terracare Associates, LLC $418,975
2 Aztec Landscaping, Inc.$468,984
WHEREAS, the fiscal year 2019 budget did not include sufficient funds and a budget
appropriation of $102,000 from the available fund balance of this fund is recommended.
2018-09-25 Agenda Packet Page 140
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it accepts bids and awards the landscape maintenance contract for Bid Group 4 to Terracare
Associates, LLC in the amount of $418,975.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it
approves the City of Chula Vista Contractor Services Agreement With to Terracare Associates,
LLC To Provide Landscape Maintenance Services, in the form presented, with such minor
modifications as may be required or approved by the City Attorney, a copy of which shall be
kept on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute the
same.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it
approves an appropriation of $102,000 to the Supplies and Services expense category of the CFD
08 V6 M OR fund.
Presented by Approved as to form by
_________________________ __________________________
Iracsema Quilantan Glen R. Googins
Director of Public Works City Attorney
2018-09-25 Agenda Packet Page 141
Page | 1
September 25, 2018 File ID: 18-0443
TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING CITY COUNCIL POLICY 570-02 AND APPROVING A SEWER SERVICE AGREEMENT BETWEEN CITY OF CHULA VISTA AND THE COUNTY OF SAN DIEGO FOR OTAY LAKES COUNTY PARK
RECOMMENDED ACTION Council adopts the resolution.
SUMMARY The County of San Diego (County) owns and operates an approximately 78-acre park located immediately adjacent to the City of Chula Vista’s (City’s) boundaries commonly referred to as Otay Lakes County Park (Park). The County currently provides sewer service at restrooms, a ranger station and recreational vehicle host facilities using a septic system and has plans to establish a small recreational campground at this site. The additions to the Park exceed the capacity of the existing septic system. The City’s sewer system can accept, transport, treat and dispose of existing and anticipated additional sewage generated. In order to support this regional Park, the City and County have negotiated mutually acceptable terms for the City to provide sewer service to the Park.
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.
2018-09-25 Agenda Packet Page 142
Page | 2
DISCUSSION The County owns and operates an approximately 78-acre park located immediately adjacent to the City of Chula at 2270 Wueste Road, Chula Vista, California, as shown in Attachment 1. The Park utilizes a septic system to provide sewer service to the existing restrooms, ranger station and recreational vehicle host facilities. The County plans include a small recreational campground at this site. The estimated capacity needed after expansion will exceed the capacity of the existing septic system. The City’s Salt Creek Trunk Sewer located near Park, as shown in Attachment 2 has the capacity to receive, transport, treat and dispose of the existing and additional sewage. The County proposed two potential alignments for connecting to the City’s existing system, Option A and B shown in Attachment 2. The details of each alignment are being finalized and require coordination with the City. City Council’s approval of the proposed agreement (Attachment 3) would authorize the County to connect to City’s Salt Creek Trunk Sewer main at one of the two locations identified above. Under the proposed agreement, the County would be required to pay the applicable capacity fee in effect the time of the connection and the applicable sewer service charge in effect at the time of each billing. Further expansion of facilities will be limited to the seventeen (17) equivalent dwelling unit (EDU) capacity limit in the agreement. The proposed agreement further requires the County to bear all costs associated with any required review or approval from the San Diego Local Agency Formation Commission (LAFCO), as necessary. Finally, the proposed agreement requires the County to defend and indemnify the City for all claims and damages related to sewer overflows
from the Park, connection to the City's main, failure to obtain necessary approvals, and any
action challenging approval of the proposed agreement.
City Council approval of the resolution would waive the requirements of City Council Policy
570-02 for providing sewer service to properties not within City boundaries. Staff recommends
waiver of the requirements of this policy as the proposed connection from the Park is not the
kind of connection addressed under that policy. Policy 570-02 addresses connections from
County homeowners near existing City sewer lines that will be subject to future annexation, none
of which are applicable here.
DECISION-MAKER CONFLICT Staff has reviewed the property holdings of the County of San Diego 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 of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
2018-09-25 Agenda Packet Page 143
Page | 3
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 Sewer Service Agreement between the County of San Diego and the City of Chula Vista for Otay Lakes County Park Sewer Service supports the Economic Vitality and Connected Community goals. The agreement provides a fiscally sustainable agreement with the County of San Diego.
CURRENT-YEAR FISCAL IMPACT None.
ONGOING FISCAL IMPACT The project and future services provided will have no general fund impact. The wastewater fund will be receiving additional revenues that will be included in future budgets.
ATTACHMENTS 1. Otay Lakes County Park Boundaries 2. Otay Lakes County Park County Sewer Alignment Option A and B 3. Sewer Service Agreement Between City of Chula Vista and County of San Diego For Otay Lake County Park
Staff Contact: Beth Gentry P.E., Sr. Civil Engineer - Wastewater
2018-09-25 Agenda Packet Page 144
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING CITY COUNCIL POLICY 570-02
AND APPROVING A SEWER SERVICE AGREEMENT
BETWEEN CITY OF CHULA VISTA AND THE COUNTY OF
SAN DIEGO FOR OTAY LAKES COUNTY PARK
WHEREAS, the County of San Diego (County) owns and operates an approximately 78-
acre park located immediately adjacent to the City of Chula (City) at 2270 Wueste Road, Chula
Vista, California (Park); and
WHEREAS, the County currently provides sewer service to the Park via a septic system
for existing restrooms, a ranger station, and recreational vehicle host facilities and the County
plans include a small recreational campground at this site the expansion exceeds the capacity of
the existing septic system; and
WHEREAS, the Otay Lakes County Park is not situated where it is advantageous for the
County of San Diego to provide sewer service, but the park is located adjacent to the Salt Creek
Sewer Basin and is within the Main Street Basin which has no sewer facilities in the general
area; and
WHEREAS, the 8-inch sewer lateral is estimated to flow no more than seventeen (17)
equivalent dwelling units and the City’s Salt Creek Trunk Sewer has the capacity to receive,
transport, treat and dispose of such additional sewage; and
WHEREAS, the County proposed two potential alignments for connecting to the City’s
existing system via an 8-inch sewer lateral the details of each alignment are being finalized and
require coordination with the City; and
WHEREAS, all the costs associated with this action, design, environmental clearance,
construction and maintenance of the proposed sewer lateral would be the responsibility of the
County of San Diego; and
WHEREAS, 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.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista that it approves the Sewer Service Agreement Between City Of Chula Vista And The
County Of San Diego For Otay Lakes County Park, in the form presented, with such minor
2018-09-25 Agenda Packet Page 145
modifications as may be required or approved by the City Attorney, authorizes the City Manager,
or designee, to negotiate minor modifications as necessary to finalize the agreement, authorizes a
the final copy of the agreement to be kept on file in the Office of the City Clerk, and authorizes
and directs the Mayor to execute the final agreement on a form 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
2018-09-25 Agenda Packet Page 146
This map is a user generated static output from an Internet mapping site and
is for reference only. Data layers that appear on this map may or may not be
accurate, current, or otherwise reliable.
9,600
Department of Parks and Recreation - The Upside of Outside
0.3
THIS MAP IS NOT TO BE USED FOR NAVIGATION
1:
WGS_1984_Web_Mercator_Auxiliary_Sphere
Miles0.300.15
Notes
Legend
Assessor Parcels
2018-09-25 Agenda Packet Page 147
This map is a user generated static output from an Internet mapping site and
is for reference only. Data layers that appear on this map may or may not be
accurate, current, or otherwise reliable.
12,000
Department of Parks and Recreation - The Upside of Outside
0.4
THIS MAP IS NOT TO BE USED FOR NAVIGATION
1:
WGS_1984_Web_Mercator_Auxiliary_Sphere
Miles0.400.19
Notes
Legend
Assessor Parcels
2018-09-25 Agenda Packet Page 148
1
SEWER SERVICE AGREEMENT BETWEEN THE
CITY OF CHULA VISTA AND THE COUNTY OF SAN DIEGO
FOR OTAY LAKES COUNTY PARK
This Agreement to provide replacement sewer services (Agreement) for
Otay Lakes County Park is made by and between the City of Chula Vista, a municipal
corporation (City), and the County of San Diego, a political subdivision of the State of California
(County). City and County are referred to individually as "Party" and collectively as "Parties."
RECITALS
A. County owns and operates an approximately 78 acre park located immediately
adjacent to the City’s boundaries commonly referred to as Otay Lakes County Park, 2270
Wueste Road, Chula Vista, California, as more specifically identified on Exhibit A hetero (Park);
and
B. County currently provides sewer service at restrooms, a ranger station and
recreational vehicle host facilities using a septic system and has plans to establish a small
recreational campground at this site with approximately ____ additional equivalent dwelling
units; and City owns and operates a sewer system with nearby main lines as depicted on the map
attached hereto as Exhibit B that can provide sewer service in place of the existing septic system;
and
C. City is willing and able to receive, transport, treat and dispose of sewage
generated at the Park and County is willing to receive this service in place of the existing septic
system subject the certain terms and conditions as are more fully set forth below.
AGREEMENT
NOW, THEREFORE, in consideration of these recitals and the mutual obligations and
covenants contained herein, the Parties mutually agree as follows:
ARTICLE I - SEWER SERVICE
1.1 Sewer Service. The City shall receive, transport, treat and dispose of all sewage generated by
the Park and delivered to the City in accordance with this Agreement.
1.1.1 Service Area. Only the Park property identified in Exhibit A is allowed to send
sewage to the City for transport, treatment and disposal.
1.1.2 Changes to Service Area. Notwithstanding Section 1.1.1, at the written request of
County, the City may, at City’s discretion, administratively update Exhibit A to add,
delete, or exchange property included within the boundaries of the Park. Any
administrative update made by City shall strictly comply with the capacity limitations
outlined in section 1.1.3. Only property dedicated to and used for park purposes may be
served by City pursuant to this Agreement.
2018-09-25 Agenda Packet Page 149
2
1.1.3 Capacity Limitations. County may discharge up to seventeen (17) equivalent
dwelling units of wastewater generated from the Park into the City’s sewer main
(“County Limit”). County shall not allow flows into the City’s sewer main that exceed
the County Limit without obtaining City’s prior written consent. The County Limit may
be increased only by written agreement of the Parties.
1.1.4 Notice For Future Improvements. The County shall notify the City of the
installation of any future improvements not listed in Recital B which will result in an
increase in sewage generated by the Park regardless of whether such improvements will
cause flows from the Park to exceed the County Limit.
1.1.5 Point of Delivery. County shall deliver sewage generated at the Park to the existing
City sewer main commonly known as Salt Creek Trunk Sewer, as more particularly
shown in Exhibit B. County shall allow the City access to County’s facilities immediately
upstream of this connection to sample or meter the flow from County.
1.1.6 Monitoring. If at any time during the term of the Agreement it is deemed
necessary or desirable by City to measure all or a portion of the flow from County, the
City shall make written demand on county that County install any and all meters as City
deems necessary or desirable. County shall install, at its sole expense, all such meters at
locations specified by the City by no later than ninety (90) days after receipt of City’s
demand. County shall be responsible to operate, maintain, manage, and control all flow
monitoring devices installed to monitor its flows into the City’s sewer main in an
efficient and economical manner and to preserve them in good repair and working order,
all in accordance with recognized and sound engineering practices. County shall make
all flow data information available to City.
1.1.7 No Limitation on Municipal Powers. City has sole discretion to determine how to
operate the City’s sewer main and sewerage system. Nothing in this Agreement shall be
construed as precluding or limiting City from taking any action reasonably necessary to
prevent flow form County that endangers the health, safety, or welfare of the residents of
the City.
1.2 County Sewer System. County is responsible for operating and maintaining any sewer lines
and appurtenant facilities that connect facilities in the Park to the City's sewer main. The sewer
line connecting Park facilities to the City’s sewer main shall be eight-inches in diameter and be
deemed a sewer lateral within the meaning of the City’s Sewer Lateral Policy, Policy 570-01,
dated June 3, 2014. County shall be solely responsible for all of its pipes and other sewer
infrastructure in and serving the Park and maintaining a proper and working connection to the
City’s sewer main.
1.2.1 Design and Construction Standards. County shall be responsible to design,
construct, and maintain the sewer lateral and all other sewer infrastructure to convey
sewer flows from the Park to the point of connection with City's sewer main in a manner
2018-09-25 Agenda Packet Page 150
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that meets or exceeds all applicable requirements in City ordinances, resolutions, rules,
standards, and policies, and any applicable laws, regulations, and standards of the State of
California and United States of America. County shall install a property line clean-out or
manhole to allow for regular cleaning and inspection of the sewer lateral connecting the
Park to the City’s main line. County will provide a copy of the design of the sewer
lateral to the City for review and comment before connecting the Park to the City’s sewer
main. City shall not unreasonably condition or delay approval of the connection of the
sewer lateral to the City’s main line. The City may charge County for reasonable plan
check, administration, and inspection fees in connection with the construction of the
sewer lateral in addition to any other fees required by this Agreement.
1.2.2 Compliance with City, Federal and State Requirements. County shall not permit
the discharge of any sewage, waste, pollutant, or excessive inflow or infiltration into the
City's sewer main that is prohibited by City ordinances, resolutions, rules, standards, or
policies, any laws or regulations of the United States of America or the State of
California, including without limitation any regulations that may be adopted by the
Environmental Protection Agency, State Water Resources Control Board, or such other
agencies as may now or in the future be responsible for regulating the transport and
disposal of wastewater from the Park. Inflow or infiltration is considered excessive when
the flow from the Park in any 24 hour period during or after a rain event exceeds twice
the typical dry weather flow. County acknowledges and agrees that it is aware of City’s
obligations under its Regional Wastewater Disposal Agreement and that County shall not
discharge sewage into the City’s sewer main in a manner that would cause City to violate
the Regional Wastewater Disposal Agreement.
1.2.3 Diversion Prohibited. The diversion of any rainwater, storm water, groundwater
(other than unintentional infiltration), foundation drainage, drainage from any outside
surface such as streets, driveways, roofs, and yards, and any drainage from pools or
ponds into the sewer system in the Park is strictly prohibited. Such diversion
may result in termination of this Agreement for default under section 3.2 at the City's
sole discretion.
ARTICLE II- COMPENSATION
2.1 Compensation. County shall pay the City the following as compensation for the City
providing sewer service:
2.1.1 Sewer Capacity Charge. Prior to connecting to the City's sewer main, County shall
pay the City the total sewer capacity fee in effect at the time of connection. County
acknowledges and agrees that capacity fees are not refundable, even upon termination of
this Agreement.
2.1.2 Service Charge. County shall pay the City a sewer service charge at the City's rate
in effect at the time of each billing.
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2.1.3 Adjustments. It is the intent of this Article that County pay the same rate for sewer
service to the Park as if the Park was located within the City. The capacity fee and sewer
service charge are subject to change by the City.
ARTICLE III – TERM
3.1 Term. This Agreement shall become effective upon the date of the last signatory hereto, and
shall continue without expiration, unless terminated earlier pursuant to this Article.
3.2 Termination for Default. The City may terminate this Agreement for default if County
fails to timely or adequately perform any obligation required by this Agreement, and does not
cure such default within thirty (30) days of written notice from the City.
3.3 Termination for Convenience. County may terminate this Agreement for its convenience at
any time after the effective date of this Agreement. For termination to become effective,
County must provide the City with thirty (30) days advance written notice, pay any undisputed
amounts due the City under Article II, and disconnect and cap the connection with the City's
sewer main in a manner acceptable to the City in the City’s sole discretion. Upon termination for
convenience, County shall be solely responsible for providing sewer service to the Park.
ARTICLE IV - INDEMNITY
4.1 In addition to any other indemnity, defense, and hold harmless obligations of County as
provided in this Agreement, County shall defend, indemnify, and hold harmless City, its
officials, officers, employees, and agents (“City Parties”) from all claims, liability, damages,
enforcement actions, penalties, fines, and judgments (collectively, “Claims”) for injury or
damage to any person (including death) or property arising from or out of any act or omission of
County, its Supervisors, members, agents, officers, employees, or contractors (“County Parties”)
arising out of or in connection with this Agreement, including those arising out of, related to, or
in connection with: (a) sanitary sewer overflows from the County sewer system including, but
not limited to, fines or penalties that may be assessed by the Regional Water Quality Control
Board or the Federal Environmental Protection Agency; (b) disconnecting and capping the
connection with the City's sewer main; (c) County’s failure to obtain any required review or
approval from the San Diego Local Agency Formation Commission (LAFCO); (d) any action
brought to challenge City’s or County’s approval of this Agreement without first obtaining
LAFCO approval; and (e) County’s failure to perform or comply with any obligation,
representation, or warranty under this Agreement.
County's obligation to defend, hold harmless, and indemnify the City shall survive the
termination and expiration of this Agreement, and continue so long as a viable claim exists.
ARTICLE V - GENERAL PROVISIONS
5.1 Customer Service. County is solely responsible for responding to complaints of sewer odors,
SSOs, and other sewer service issues for all of County’s facilities serving the Park.
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5.2 Successors and Assigns. This Agreement and all rights and obligations contained herein
shall be in effect whether or not any or all Parties to this Agreement have been succeeded by
another entity, and all rights and obligations of the Parties signatory to this Agreement shall be
vested and binding on their successors in interest. Notwithstanding the foregoing, only a public
agency providing recreational services at the Park may succeed to City services pursuant to this
Agreement.
5.3 Notices. Any notice to be given or other document to be delivered by any Party to the other
Party may be delivered in person, or may be deposited in the United States mail in the State of
California, with postage prepaid, or by Federal Express or other similar overnight delivery
service or by facsimile transmission and addressed to the Party for who intended:
To City: To County:
Director, Engineering & Capital Projects Director, Department of Parks & Recreation
City of Chula Vista County of San Diego
276 Fourth Avenue 5500 Overland Avenue
Chula Vista, CA 91910 San Diego, CA 92123
The Parties my from time to time change the person or address for providing notice, by
providing notice of the change to the other Party in the manner provided for by this Section.
5.4 Severability. If any provision of this Agreement is held by a court of competent jurisdiction
to be invalid, void or unenforceable, the remaining provisions shall, nevertheless, continue in full
force and effect without being impaired or invalidated in any way, except to the extent that
enforcement of this Agreement without the invalidated provision would materially and adversely
frustrate the purpose or intent of this Agreement.
5.5 Interpretation. This Agreement is entered into, and shall be construed and interpreted in
accordance with the laws of the State of California. This Agreement shall be construed without
regard to any presumption or other rule requiring construction against the Party causing this
Agreement to be drafted.
5.6 Limitation on Powers. Nothing in this Agreement shall be construed as a limitation upon the
powers of City as a chartered City of the State of California.
5.7 Assignment. Neither party shall assign this Agreement, in whole nor in part, without the
prior written consent of the other party, which shall not be unreasonably withheld.
5.8 Waiver. No breach of any provision hereof can be waived unless in writing. Waiver of any
breach of any provision hereof shall not be deemed to be a waiver of any other breach of the
same or any other provision hereof.
5.9 LAFCO. County shall be solely responsible for obtaining any required review and approvals
from the San Diego Local Agency Formation Commission (LAFCO) for the Parties to enter into
this Agreement and for City to provide the services contemplated in this Agreement.
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6
5.10 Approval. Whenever this Agreement requires approval, consent, acceptance, or
determinations of a Party, such approval, consent, acceptance, or determination shall not be
unreasonably withheld, delayed, or conditioned unless otherwise specified in this Agreement.
5.11 Force Majeure. In the event the performance of a Party is interrupted or delayed due to
causes which are outside the control of the Parties and their agents, and could not be avoided by
the exercise of due care, which may include, but are not limited to, war, terrorist attack, act of
God, government regulations, labor disputes, strikes, fires, or floods, the Party will be entitled to
an extension in time of performance equivalent to the length of delay.
5.12 Incorporation of Exhibits and Recitals. All exhibits referenced in this Agreement and all
recitals are incorporated herein by reference.
5.13 Third Party Beneficiaries. Nothing in this Agreement shall grant rights or benefits to anyone
other than the City and County, and any alleged third party beneficiaries are hereby expressly
disclaimed.
5.14 Integration. This Agreement and its exhibits contains the entire understanding between all
the Parties relating to this transaction, and all prior or contemporaneous agreements,
understandings, representations and statements, oral or written, are merged herein and shall be of
no further force or effect. Any subsequent amendments to this Agreement must be mutually
agreed upon and executed by the authorized representatives of the Parties in writing. Verbal
modifications shall have no effect.
5.15 Counterparts. This Agreement may be executed in multiple counterparts, which when taken
together shall constitute a single signed original as though all Parties had executed the same
page.
IN WITNESS WHEREOF, the Agreement is executed by the City of Chula Vista, acting by and
through _________________, and by the County through its authorized officer.
County of San Diego City of Chula Vista
By:____________________ By:_____________________
Name: _________________ Name: __________________
Date: __________________ Date: ___________________
Approved as to form Approved as to form
and legality and legality
By:__________________________ By:______________________
Thomas L. Bosworth, Sr. Deputy Michael J. McDonnell, Deputy
Office of County Counsel Office of the City Attorney
County of San Diego City of Chula Vista
2018-09-25 Agenda Packet Page 154
P a g e | 1
September 25, 2018 File ID: 18-0409
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) DECLARING A SHELTER CRISIS,
WITHIN THE MEANING OF GOVERNMENT CODE SECTION 8698, ET SEQ; (2) AND AUTHORIZING THE
CITY MANAGER TO SEEK HOMELESS EMERGENCY AID PROGRAM (HEAP) FUNDS TO ADDRESS SAID
SHELTER CRISIS AS PROVIDED FOR IN SB 850 AND THE 2018-19 BUDGET ACT; AND (3) RELATED
ACTIONS
RECOMMENDED ACTION
Council adopt the resolution.
SUMMARY
The 2018 Regional Task Force on the Homeless Point-In-Time Count, conducted on January 26, 2018,
identified a total of 367 homeless people within Chula Vista’s city limits, equating to approximately 4% of
the entire homeless population in the San Diego region. Of the 367 identified, 262 were unsheltered within
the City, living on City streets, parks, in canyons, riverbeds, or in vehicles. Given the number of persons
living without shelter and the need for additional housing accommodations, a declaration of a shelter crisis,
within the meaning of Government Code section 8698.2, may allow the City of Chula Vista and those service
providers operating within Chula Vista to access funding provided under the State of California Homeless
Emergency Aid Program (HEAP) as part of SB 850 and the 2018-19 Budget Act.
ENVIRONMENTAL REVIEW
This proposed activity has been reviewed for compliance with the California Environmental Quality Act
(CEQA) and it has been determined that the activity is not a “Project” as defined under Section 15378 of the
State CEQA Guidelines because it will not result in a physical change in the environment; therefore,
pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA. Thus, no
environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not Applicable.
DISCUSSION
The State of California has recognized the urgent and immediate need for funding at the local level to
combat homelessness and has provided funding to local governments under the Homeless Emergency Aid
2018-09-25 Agenda Packet Page 155
P a g e | 2
Program (“HEAP”) as part of SB 850 and the 2018-19 Budget Act. Under this one-time flexible funding
source, an estimated $18.8 million will be made available to the San Diego Regional Continuum of Care
Council (“CoC”), which includes the City of Chula Vista.
To provide immediate emergency assistance to persons experiencing homelessness, HEAP funds may be
used for the following activities:
Homelessness prevention activities,
Criminal justice diversion programs for the homeless with mental health needs
Establishing or expanding services that meet the needs of homeless youth or youth at risk of
homelessness
Emergency aid.
HEAP funds will be made available directly to the City of San Diego, as a large city with a population over
330,000, and the CoC, representing all other jurisdictions within San Diego County. The City of Chula Vista
and those service providers operating within Chula Vista would then apply to the CoC for HEAP funds. The
first round of funding is expected to be released by September 3, 2018 and a second round is planned for
release on February 15, 2019.
For the City of Chula Vista or any other service provider operating within Chula Vista (e.g. South Bay
Community Services) to apply for HEAP funding, a declaration of a shelter crisis (“Shelter Crisis”) pursuant
to Government Code section 8698 et seq. must be adopted by the governing body of the jurisdiction within
the CoC. Declaration of such Shelter Crisis under Government Code section 8698 et seq. means that a
significant number of residents are without housing and that the situation represents a health and safety
concern to the community.
While such declaration of a Shelter Crisis makes available potential funding sources such as HEAP,
declaration of such a crisis under California Government Code Section 8698 has impacts beyond funding.
Upon declaration of a Shelter Crisis, the City may allow homeless persons to occupy "designated public
facilities" during the state of emergency. In addition, California Government Code Section 8698.1 (b)
requires the suspension of any state or local regulatory statue, regulation or ordinance prescribing
standards of housing, health or safety (with regard to specified “public facilities”)to the extent that strict
compliance with these standards would prevent, hinder or delay the mitigation of the effects of a shelter
crisis. These provisions are applicable only to those additional public facilities open to the homeless. In
place of such suspended standards, the City may adopt minimum health and safety standards to erect
shelters and housing quicklyyet ensuring basic levels of public health and safety conditions.
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.).
2018-09-25 Agenda Packet Page 156
P a g e | 3
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 declaration of a shelter
crisis and the City’s application for funding under the State of California HEAP to facilitate meeting the
immediate needs of those homeless or at risk of homelessness within Chula Vista supports the Connected
Community goals as it provides a pathway to meet and address the needs and priorities of the most
vulnerable residents of ChulaVista.
CURRENT-YEAR FISCAL IMPACT
There will be no current fiscal year impact, since this Council action pertains to a declaration of a shelter
crisis and does not require any allocation of funding by the City of Chula Vista to address such crisis.
Declaration of such crisis is required to apply for other available funding sources (e.g. HEAP). If any HEAP
funds are awarded, staff will return to City Council at such time with a recommendation to accept and
appropriate the funds.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact for declaring a shelter crisis or the application to the State for funding
under HEAP.
ATTACHMENTS
1. Homeless Emergency Aid Program (HEAP) Grant Program Guidance
2.California Government Code Section 8698 et seq.
Staff Contact: LeilaniHines, Housing Manager
2018-09-25 Agenda Packet Page 157
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DECLARING A SHELTER CRISIS, WITHIN
THE MEANING OF GOVERNMENT CODE SECTION 8698,
ET SEQ; AUTHORIZING THE CITY MANAGER TO SEEK
HOMELESS EMERGENCY AID PROGRAM (HEAP) FUNDS
TO ADDRESS SAID SHELTER CRISIS AS PROVIDED FOR
IN SB 850 AND THE 2018-19 BUDGET ACT; AND RELATED
ACTIONS
WHEREAS, California’s Governor Edmund G. Brown, Jr. and the members of the
California Legislature (“Legislature”) have recognized the urgent and immediate need for
funding at the local level to combat homelessness; and
WHEREAS, the Governor and the Legislature have provided funding to local
governments under the Homeless Emergency Aid Program as part of SB 850 and the 2018-19
Budget Act (Chapter 48, Statutes of 2018); and
WHEREAS, the Governor and Legislature require jurisdictions seeking an allocation
through the Homeless Emergency Aid Program to declare a shelter crisis (“Shelter Crisis”)
pursuant to Government Code §8698.2; and
WHEREAS, the City of Chula Vista (the “City”) has developed a homelessness plan and
undertaken multiple efforts at the local level to combat homelessness; and
WHEREAS, the City finds that 367 persons within Chula Vista are homeless and living
without shelter; and
WHEREAS, the 2018 Regional Task Force on the Homeless Point-In-Time Count,
conducted on January 26, 2018, identified a total of 367 homeless persons within the City,
equating to approximately 4% of the entire homeless population in the San Diego region; and
WHEREAS, 262 of the people counted were unsheltered within the City, living on City
streets, in canyons, riverbeds, parks, or in vehicles; and
WHEREAS, the City finds that the number of homeless is significant, and these persons
are without the ability to obtain shelter and at risk of injury and harm due to exposure to the
elements and other health, safety and welfare-related circumstances and consequences associated
with living outside; and
WHEREAS, the impact of homeless overnight lodging in City parks and on public
sidewalks, parking lots, canyons and riverbeds has an effect on physical environmental
resources, as well as on the use and enjoyment of public spaces for their intended purposes by
the public at-large; and
2018-09-25 Agenda Packet Page 158
WHEREAS, such homeless overnight lodging in public spaces also has an adverse effect
on the health and safety of the people in the City, including the homeless population; and
WHEREAS, the City Council affirms the City of Chula Vista’s commitment to
combatting homelessness and creating or augmenting a continuum of shelter and service options
for those living without shelter in our communities.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that a Shelter Crisis pursuant to Government Code §8698.2 exists in Chula Vista because
the substantial unsheltered homeless population in the City is at risk of injury and harm due to
exposure to the elements and other health, safety and welfare-related circumstances and
consequences associated with living outside and because the impact of homeless overnight
lodging in City parks and on public sidewalks, parking lots, canyons and riverbeds has an effect
on physical environmental resources, as well as on the use and enjoyment of public spaces for
their intended purposes by the public at-large, and such homeless overnight lodging in public
spaces also has an adverse effect on the health and safety of the people in the City; and,
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it
does hereby authorize the City of Chula Vista’s participation in the Homeless Emergency Aid
Program (HEAP) as part of SB 850 and the 2018-19 Budget Act (Chapter 48, Statutes of 2018),
directs the City Manager, or his designee, to prepare all necessary documents and any actions, as
required for the City’s participation in the HEAP, and authorizing the City Manager, or his
designee, to execute any HEAP application, agreement and all associated documents, and other
actions necessary for the City’s participation; and
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that the
declaration of a Shelter Crisis implements the provisions of Government Code section 8698.1(b)
which provides that for the term of the Shelter Crisis, “the provisions of any state or local
regulatory statute, regulation, or ordinance prescribing standards for housing, health, or safety
[with regard to specified “public facilities”] shall be suspended to the extent that strict
compliance would in any way prevent, hinder, or delay the mitigation of the effects of the shelter
crisis.” The City Council authorizes the City Manager, pursuant to Government Code section
8698.1(b), at the City Manager’s discretion and with City Council approval, to establish and
apply interim health and safety provisions and land use controls (collectively referred to “health
and safety standards”) to impacted public facilities to ensure minimal public health and safety;
and
BE IT FURTHER RESOLVED by the City Council of Chula Vista that this Resolution
shall remain in place until September 27, 2019.
Presented by Approved as to form by
Kelly G. Broughton, FASLA Glen R. Googins
2018-09-25 Agenda Packet Page 159
Resolution No.
Page 3
Director of Development Services City Attorney
2018-09-25 Agenda Packet Page 160
CC~~~ ~@~00 I~
HOMELESS COORDINATING
AND FINANCING COUNCIL
HOMELESS EMERGENCY AID PROGRAM
(HEAP)
Program Guidance
Edmund G. Brown Jr., Governor
Secretary Alexis Podesta, Council Chair
Ginny Puddefoot, Executive Officer
August 7, 2018
2018-09-25 Agenda Packet Page 161
~&~~~@ D ~&
HOMELESS COORDINATING
AND FINANCING COUNCIL
Homeless Emergency Aid Program (HEAP) Grant
Program Guidance – August 2018
The California Homeless Coordinating and Financing Council (HCFC) is pleased to announce
the launch of the Homeless Emergency Aid Program (HEAP). HEAP is a $500 million block
grant program designed to provide direct assistance to cities and counties to address the
homelessness crisis throughout California. HEAP is authorized by Senate Bill (SB) 850, which
was signed into law by Governor Brown in June 2018. This overview provides a program
timeline with key milestones and delineates when stakeholders may expect program
deliverables.
Available Funding
HEAP funding is divided into three categories for distribution.
Category for Distribution Funded Amount Eligible Applicants
Continuum of Care –
Based on Point in Time Count Ranges [SB
850: Section 2, Chapter 5, 50213 (a)]
$250,000,000 Continuum of Care (CoC)
Continuum of Care –
Based on Percent of Homeless Population
[SB 850: Section 2, Chapter 5, 50213 (b)]
$100,000,000 Continuum of Care (CoC)
City / City that is also a County –
Based on Population [SB 850: Section 2,
Chapter 5, 50213 (c)]
$150,000,000 Large Cities (LCs) with a
population over 330,000
Eligible Uses
HEAP funds are intended to provide funding to Continuums of Care (COCs) and large cities
(LCs) with populations over 330,000, so they may provide immediate emergency assistance to
people experiencing homelessness. Eligible uses include, but are not limited to the following:
a. Homelessness prevention activities,
b. Criminal justice diversion programs for homeless individuals with mental health needs,
c. Establishing or expanding services meeting the needs of homeless youth or youth at
risk of homelessness, and
d. Emergency aid.
The parameters of the program are intentionally broad to allow local communities to be
creative and craft programs that meet the specific needs they have identified . All activities
must directly benefit the target population.
Expenditure Deadlines
The HEAP statute mandates that 50 percent of the awarded funds must be contractually
obligated by January 1, 2020. Additionally, 100 percent of the funds must be expended by
June 30, 2021. Unexpended funds must be returned to the Business, Consumer Services and
Housing Agency (BCSH) and will revert to the General Fund. Finally, administrative costs are
Homeless Emergency Aid Program (HEAP) – Program Guidance H2
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capped at five percent of program funds, but this does not include staff costs directly related to
carrying out program activities.
Eligible Applicants
For the HEAP program, an Administrative Entity (AE) is the CoC. The CoC is the eligible
applicant for HEAP funding for the same geographic boundaries for which it administers
federal Department of Housing and Urban Development CoC funds. LCs with populations over
330,000 are also eligible applicants. Please refer to the California Department of Finance
website for population estimates. LC grant applicants will enter into a contract with BCSH and
administer their own funds separately, however, they will still be expected to collaborate with
their CoC.
Shelter Crisis Declaration
The shelter crisis declaration is required for all cities and counties within a CoC that wish to
receive HEAP funds, except for CoCs with fewer than 1,000 homeless people, based on the
2017 Point in Time count. Each incorporated city must declare a shelter crisis pursuant to
Chapter 7.8 (commencing with Section 8698) of Division 1 of Title 2 of the Government Code .
Counties may declare a shelter crisis only for the unincorporated areas of the county. The
declaration is a resolution that must be adopted by the governing body of a jurisdiction or
jurisdictions within a CoC or LC. A sample resolution has been provided (see attachment A). If
a CoC has fewer than 1,000 homeless people, they may submit with their application a waiver
exempting all cities and the counties that are part of the CoC from declaring a shelter crisis.
Pre-Application Program Timeline
Beginning in early August, the HEAP team will begin the distribution of key prog ram
information and documents. These pre-application materials will help inform the local
collaborative process and assist stakeholders as they plan their applications.
Program Guidance, Timeline, Sample Shelter Crisis Resolution, Funding Allocations
August 3, 2018 The guidance document includes a program timeline, sample
resolution and funding allocation spreadsheet.
HEAP Frequently Asked Questions
August 10, 2018 The FAQs will be updated on a regular basis on the HCFC
website: http://www.bcsh.ca.gov/hcfc/
Sample Application and Instructions
August 17, 2018 An application map will be released in advance of the HEAP
Notice of Funding Availability (NOFA). The map will track to
the application. The map, once completed will make the
application process seamless.
August 20, 2018 Application instructions will be distributed along with the
sample application.
Workshops/Webinars -Application Training Documents
August 13 – Ongoing Outreach and technical assistance will be conducted by the
HEAP team. A detailed schedule will be posted on the HCFC
website at a later date.
Application Timeline
Applications will be accepted immediately upon release of the Round 1 Notice of Funding
Availability (NOFA) beginning on September 5, 2018. The Round 2 NOFA is planned for
release on February 15, 2019. If, after the second round of awards, not all funds have been
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claimed by all administrative entities, the BCSH shall, no later than June 15, 2019, work with
the Department of Finance to identify an appropriate allocation methodology for a third round
of awards or determine if any unallocated funds should revert to the General Fund.
Round 1
NOFA Release September 5, 2018
Early Applications Reviews Start*** Starting in September 2018
Early Applications Awarded Starting in September 2018
Early Distribution of Funds Begins Starting in late October 2018
Round 1 Application Cut-off Date No later than December 31, 2018
Standard Applications Awarded No later than January 2019
Standard Distribution of Funds Begins April 2019
Round 2
NOFA Release February 15, 2019
Early Applications Reviews Start*** Starting in February 2019
Early Applications Awarded Starting in February 2019
Early Distribution of Funds Begins Starting in late March 2019
Round 2 Application Cut-off Date No later than April 30, 2019
Standard Applications Awarded No later than May 2019
Standard Distribution of Funds Begins July 2019
***The HEAP team, recognizing the urgent need in cities and counties, encourages early
applications and will review applications, make award decisions, and disburse funds on a
rolling basis, immediately upon receipt.
Application Process
HEAP applications will be received through an online portal, with supporting attachments
submitted via email. There are separate applications for CoCs and LCs. The applicant (CoC or
LC) must submit with the application proof that a resolution declaring a shelter crisis has been
approved for all jurisdictions receiving funds. Applicants must conduct a local collaborative
application process to determine how HEAP funds will be utilized in the CoC or LC. The
submitting entity must also demonstrate coordination with stakeholders, including but not
limited to, homeless service and housing providers, law enforcement, cities, and homeless
advocates whose general service area falls within the CoC or LC. The CoC or LC in turn may
make sub-awards to entities it determines are qualified to carry out the eligible activities and
operate within areas with approved shelter crisis status.
Special Notes
Collaboration
CoCs and LCs must demonstrate that a local collaborative effort has been conducted prior to
application submission. A collaborative process may include, but is not limited to, a public
meeting, regional homeless taskforce meeting, letters of support with signatures of
endorsement, an adopted homeless plan, and an adopted budget which includes HEAP funds .
Proof of a public process may include sign-in sheets, meeting minutes, agendas, and public
comment logs, among other items. It is important that a wide enough range of participants are
consulted as part of this process. Participants should include representatives of local homeless
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service provider entities, law enforcement, behavioral health , and city and county public
officials.
Homeless Youth
The HEAP statute requires a minimum investment of five percent of all awards be set aside for
emergency assistance for homeless youth. The HEAP team encourages and expects local
CoCs and LCs to work with youth advocates and related stakeholders to consider the level of
investment that makes sense for this most vulnerable segment of the target population.
Contact the Program
The HCFC will be providing ongoing technical assistance and training to support Co Cs and
LCs in successfully applying for and administering HEAP funds . Additional information
regarding the HEAP program is available on the HCFC website. To receive information
releases regarding the HEAP program, please register for the program listserv. If you have
questions, please direct them to the HCFC inbox at HCFC@BCSH.ca.gov.
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~-
Attachment A – Sample Crisis Declaration Resolution
DRAFT
Sample Resolution:
Declaration of a Shelter Crisis
RESOLUTION NO. _____________
RESOLUTION OF [insert name of local governing body, e.g. City Council or County Board
of Supervisors] OF THE [insert name of jurisdiction, e.g. City or County here]
_________________, STATE OF CALIFORNIA declaring a shelter crisis pursuant to SB 850
(Chapter 48, Statutes of 2018 and Government Code § 8698.2).
The ____________ [insert name of local governing body, e.g. City Council or County
Board of Supervisors] Finds:
WHEREAS, California’s Governor Edmund G. Brown, Jr. and the members of the California
Legislature have recognized the urgent and immediate need for fundin g at the local level to
combat homelessness;
WHEREAS, The Governor and Legislature have provided funding to local governments under
the Homeless Emergency Aid Program as part of SB 850 and the 2018-19 Budget Act (Chapter
48, Statutes of 2018);
WHEREAS, The Governor and Legislature require jurisdictions seeking an allocation through
the Homeless Emergency Aid Program to declare a Shelter Crisis pursuant to Government Code
§8698.2;
WHEREAS, [insert name of city or county here] has developed a homelessness plan and
undertaken multiple efforts at the local level to combat homelessness;
WHEREAS, [insert name of city or county here] finds that [Insert the 2017 Point in Time Count
for the jurisdiction] persons within the [insert name of city or county here] are homeless and
living without shelter;
WHEREAS, [insert name of city or county here] finds that the number of homeless is
significant, and these persons are without the ability to obtain shelter;
REQUIRED
WHEREAS, [insert name of city or county here] finds that the health and safety of unsheltered
persons in the [insert City or County] is threatened by a lack of shelter;
WHEREAS, [insert name of city or county here] affirms the [insert: City’s or County’s]
__________ commitment to combatting homelessness and creating or augmenting a continuum
of shelter and service options for those living without shelter in our communities;
Homeless Emergency Aid Program (HEAP) – Program Guidance H6
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+--
NOW, THEREFORE, BE IT RESOLVED BY THE [insert name of city council or county
board of supervisors here] __________________, CALIFORNIA, that a shelter crisis
pursuant to Government Code §8698.2 exists in [insert name of city or county here]
____________, and authorizes the [insert: City’s or County’s] _______ participation in the
Homeless Emergency Aid Program.
Required: This is a specific term
used in the code. Other terms
such as shelter emergency, or
homeless crisis are not
sufficient.
PASSED AND ADOPTED by the [insert governing body here] ___________ of the [insert name
of city or county here] ____________, State of California at the meeting of the said [insert Board
or City Council] held on the ___ day of _____________ by the followin g vote:
AYES: [insert name of local governing body]: __________________
NOES: [insert name of local governing body]: __________________
ABSTAIN: [insert name of local governing body]: __________________
ABSENT: [insert name of local governing body]: __________________
By: ____________________________________
________________________, CHAIR PERSON
________________ [insert name of local governing body]
ATTEST:
By: ______________________________________
Date: ____________________________________
APPROVED AS TO LEGAL FORM:
By: _____________________________________
Date: ____________________________________
Homeless Emergency Aid Program (HEAP) – Program Guidance H7
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HOMELESS COORDINATING
AND FINANCING COUNCIL
Attachment B – Formula Funding Estimates
CoC
Number
Jurisdiction Total
Homeless,
2017
Percent of
Total State
Homeless,
2017
Section 50213(a) Per
Jurisdiction portion of
$250M
Section 50213(b) $100M
Distribution Based on
Percent of Homeless
Population
Total of CoC Distribution
per 50213(a) and (b)
50214(c) 5% Minimum
Youth Set-aside Per
Continuum of Care total
of 50213(a) and (b)
CA-600 Los Angeles City & County 55,188 41.100% $ 40,000,000.00 $ 41,099,807.86 $ 81,099,807.86 $ 4,054,990.39
CA-601 San Diego City & County 9,160 6.822% $ 12,000,000.00 $ 6,821,668.48 $ 18,821,668.48 $ 941,083.42
CA-500 San Jose/Santa Clara City & County 7,394 5.506% $ 12,000,000.00 $ 5,506,486.54 $ 17,506,486.54 $ 875,324.33
CA-501 San Francisco 6,858 5.107% $ 12,000,000.00 $ 5,107,314.68 $ 17,107,314.68 $ 855,365.73
CA-502 Oakland, Berkeley/Alameda County 5,629 4.192% $ 12,000,000.00 $ 4,192,049.33 $ 16,192,049.33 $ 809,602.47
CA-602 Santa Ana, Anaheim/Orange County 4,792 3.569% $ 12,000,000.00 $ 3,568,715.65 $ 15,568,715.65 $ 778,435.78
CA-503 Sacramento City & County 3,665 2.729% $ 10,000,000.00 $ 2,729,412.12 $ 12,729,412.12 $ 636,470.61
CA-506 Salinas/Monterey, San Benito Counties 3,364 2.505% $ 10,000,000.00 $ 2,505,250.30 $ 12,505,250.30 $ 625,262.52
CA-504 Santa Rosa, Petaluma/Sonoma County 2,835 2.111% $ 10,000,000.00 $ 2,111,291.50 $ 12,111,291.50 $ 605,564.57
CA-608 Riverside City & County 2,406 1.792% $ 8,000,000.00 $ 1,791,805.06 $ 9,791,805.06 $ 489,590.25
CA-508 Watsonville/Santa Cruz City & County 2,249 1.675% $ 8,000,000.00 $ 1,674,883.45 $ 9,674,883.45 $ 483,744.17
CA-514 Fresno City & County/Madera County 2,016 1.501% $ 8,000,000.00 $ 1,501,362.84 $ 9,501,362.84 $ 475,068.14
CA-609 San Bernardino City & County 1,866 1.390% $ 8,000,000.00 $ 1,389,654.30 $ 9,389,654.30 $ 469,482.71
CA-606 Long Beach 1,863 1.387% $ 8,000,000.00 $ 1,387,420.13 $ 9,387,420.13 $ 469,371.01
CA-603 Santa Maria/Santa Barbara County 1,860 1.385% $ 8,000,000.00 $ 1,385,185.96 $ 9,385,185.96 $ 469,259.30
CA-510 Turlock, Modesto/Stanislaus County 1,661 1.237% $ 6,000,000.00 $ 1,236,985.95 $ 7,236,985.95 $ 361,849.30
CA-505 Richmond/Contra Costa County 1,607 1.197% $ 6,000,000.00 $ 1,196,770.88 $ 7,196,770.88 $ 359,838.54
CA-511 Stockton/San Joaquin County 1,542 1.148% $ 6,000,000.00 $ 1,148,363.84 $ 7,148,363.84 $ 357,418.19
CA-512 Daly City/San Mateo County 1,253 0.933% $ 4,000,000.00 $ 933,138.71 $ 4,933,138.71 $ 246,656.94
CA-509 Mendocino County 1,238 0.922% $ 4,000,000.00 $ 921,967.86 $ 4,921,967.86 $ 246,098.39
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Attachment B – Formula Funding Estimates Continued
CoC
Number
Jurisdiction Total
Homeless,
2017
Percent of
Total State
Homeless,
2017
Section 50213(a) Per
Jurisdiction portion of
$250M
Section 50213(b) $100M
Distribution Based on
Percent of Homeless
Population
Total of CoC Distribution
per 50213(a) and (b)
50214(c) 5% Minimum
Youth Set-aside Per
Continuum of Care total
of 50213(a) and (b)
CA-518 Vallejo/Solano County 1,232 0.917% $ 4,000,000.00 $ 917,499.52 $ 4,917,499.52 $ 245,874.98
CA-519 Chico, Paradise/Butte County 1,195 0.890% $ 4,000,000.00 $ 889,944.74 $ 4,889,944.74 $ 244,497.24
CA-613 Imperial County 1,154 0.859% $ 4,000,000.00 $ 859,411.07 $ 4,859,411.07 $ 242,970.55
CA-611 Oxnard, San Buenaventura/Ventura
County
1,152 0.858% $ 4,000,000.00 $ 857,921.63 $ 4,857,921.63 $ 242,896.08
CA-614 San Luis Obispo County 1,125 0.838% $ 4,000,000.00 $ 837,814.09 $ 4,837,814.09 $ 241,890.70
CA-507 Marin County 1,117 0.832% $ 4,000,000.00 $ 831,856.30 $ 4,831,856.30 $ 241,592.81
CA-515 Roseville, Rocklin/Placer, Nevada Counties 979 0.729% $ 2,000,000.00 $ 729,084.44 $ 2,729,084.44 $ 136,454.22
CA-516 Redding/Shasta, Siskiyou, Lassen,
Plumas, Del Norte, Modoc, Sierra Counties
934 0.696% $ 2,000,000.00 $ 695,571.87 $ 2,695,571.87 $ 134,778.59
CA-513 Visalia/Kings, Tulare Counties 853 0.635% $ 2,000,000.00 $ 635,249.26 $ 2,635,249.26 $ 131,762.46
CA-604 Bakersfield/Kern County 810 0.603% $ 2,000,000.00 $ 603,226.14 $ 2,603,226.14 $ 130,161.31
CA-524 Yuba City & County/Sutter County 760 0.566% $ 2,000,000.00 $ 565,989.96 $ 2,565,989.96 $ 128,299.50
CA-522 Humboldt County 759 0.565% $ 2,000,000.00 $ 565,245.24 $ 2,565,245.24 $ 128,262.26
CA-525 El Dorado County 602 0.448% $ 1,000,000.00 $ 448,323.63 $ 1,448,323.63 $ 72,416.18
CA-607 Pasadena 575 0.428% $ 1,000,000.00 $ 428,216.09 $ 1,428,216.09 $ 71,410.80
CA-521 Davis, Woodland/Yolo County 459 0.342% $ 1,000,000.00 $ 341,828.15 $ 1,341,828.15 $ 67,091.41
CA-520 Merced City & County 454 0.338% $ 1,000,000.00 $ 338,104.53 $ 1,338,104.53 $ 66,905.23
CA-529 Lake County 401 0.299% $ 1,000,000.00 $ 298,634.18 $ 1,298,634.18 $ 64,931.71
CA-526 Tuolumne, Amador, Calaveras, Mariposa
Counties
367 0.273% $ 1,000,000.00 $ 273,313.57 $ 1,273,313.57 $ 63,665.68
CA-517 Napa City & County 315 0.235% $ 1,000,000.00 $ 234,587.94 $ 1,234,587.94 $ 61,729.40
CA-523 Colusa, Glen, Trinity Counties 176 0.131% $ 500,000.00 $ 131,071.36 $ 631,071.36 $ 31,553.57
CA-612 Glendale 168 0.125% $ 500,000.00 $ 125,113.57 $ 625,113.57 $ 31,255.68
CA-527 Tehama County 124 0.092% $ 500,000.00 $ 92,345.73 $ 592,345.73 $ 29,617.29
CA-530 Alpine, Inyo, Mono Counties 121 0.090% $ 500,000.00 $ 90,111.56 $ 590,111.56 $ 29,505.58
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HOMELESS COORDINATING
AND FINANCING COUNCIL
HEAP Large Cities Allocation
CoC
Number
Jurisdiction 50213(c) Large Cities
$150,000,000 Allocation
50213(c) Minimum
Youth Set Aside Per
Large City Allocation
CA-600 Los Angeles $ 85,013,607.00 $ 4,250,680.35
CA-601 San Diego $ 14,110397.95 $ 705,519.90
CA-500 San Jose $ 11,389,987.16 $ 569,499.36
CA-501 San Francisco $ 10,564,313.22 $ 528,215.66
CA-502 Oakland $ 8,671,116.82 $ 433,555.84
CA-602 Santa Ana $ 3,690,885.841 $ 184,544.29
CA-602 Anaheim $ 3,690,885.841 $ 184,544.29
CA-503 Sacramento $ 5,645,699.61 $ 282,284.98
CA-514 Fresno $ 3,105,519.90 $ 155,276.00
CA-606 Long Beach $ 2,869,833.12 $ 143,491.66
CA-604 Bakersfield $ 1,247,753.53 $ 62,387.68
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TITLE 2. GOVERNMENT OF THE STATE OF CALIFORNIA [8000 - 22980] ( Title 2
enacted by Stats. 1943, Ch. 134. )
DIVISION 1. GENERAL [8000 - 8899.24] ( Division 1 enacted by Stats. 1943, Ch.
134. )
8698.
GOVERNMENT CODE - GOV
CHAPTER 7.8. Shelter Crisis [8698 - 8698.4] ( Chapter 7.8 added by Stats. 1987, Ch. 1116,
Sec. 2. )
For purposes of this chapter, the following definitions shall apply:
(a) “Political subdivision” includes the state, any city, city and county, county, special district, or school district
or public agency authorized by law.
(b) “Governing body” means the following:
(1) The Governor for the state.
(2) The legislative body for a city or city and county.
(3) The board of supervisors for a county.
(4) The governing board or board of trustees for a district or other public agency.
(5) An official designated by ordinance or resolution adopted by a governing body, as defined in paragraph (2), (3), or
(4).
(c) “Public facility” means any facility of a political subdivision including parks, schools, and vacant or underutilized
facilities which are owned, operated, leased, or maintained, or any combination thereof, by the political subdivision
through money derived by taxation or assessment.
(d) “Declaration of a shelter crisis” means the duly proclaimed existence of a situation in which a significant number of
persons are without the ability to obtain shelter, resulting in a threat to their health and safety.
(e) “Emergency bridge housing community” means any new or existing facilities, including, but not limited to, housing
in temporary structures, including, but not limited to, emergency sleeping cabins consistent with the requirements of
subdivision (h) of Section 8698.3 that are reserved for homeless persons and families, together with community support
facilities, including, but not limited to, showers and bathrooms adequate to serve the anticipated number of residents all
of which may be located on property leased or owned by a political subdivision. An emergency bridge housing
community shall include supportive and self-sufficiency development services, have the ultimate goal of moving
homeless persons to permanent housing as quickly as reasonably possible, and limit rents and service fees to an ability-
to-pay formula reasonably consistent with the United States Department of Housing and Urban Development’s
requirements for subsidized housing for low-income persons.
(Amended by Stats. 2016, Ch. 691, Sec. 1. (AB 2176) Effective January 1, 2017.)
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September 11, 2018 File ID: 18-0350
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE AMENDED AND
RESTATED JOINT EXERCISE OF POWERS AGREEMENT BY AND BETWEEN THE CITY OF CHULA VISTA AND
THE SAN DIEGO UNIFIED PORT DISTRICT CREATING THE CHULA VISTA BAYFRONT FACILITIES
FINANCING AUTHORITY; APPOINTING THE MAYOR TO THE GOVERNING BOARD OF THE CHULA VISTA
BAYFRONT FACILITIES FINANCING AUTHORITY; AND APPOINTING THE COUNCILMEMBER
REPRESENTING CITY COUNCIL DISTRICT 2 TO THE GOVERNING BOARD OF THE CHULA VISTA BAYFRONT
FACILITIES FINANCING AUTHORITY
RECOMMENDED ACTION
Council adopt the resolutions.
SUMMARY
On May 8, 2012, the City of Chula Vista (the “City”) and the San Diego Unified Port District (the “District”)
approved and entered into a Financing Agreement for the Chula Vista Bayfront Master Plan (CVBMP),
which identified rights and obligations of each agency, with respect to the financing, development, and
construction of CVBMP public improvements, infrastructure, and a convention center. The Financing
Agreement established that the City and the District would form a Joint Exercise of Powers Authority to
provide for or facilitate the financing of the public improvements and the convention center.
On May 13, 2014, the City of Chula Vista adopted Resolution 2014-070 approving aJoint Exercise of Powers
Agreement (the “JEPA Agreement”) forming the Chula Vista Bayfront Facilities Financing Authority (the
“Authority”) to implement common objectives of the parties related to the development of the CVBMP.
Minor clarifying amendments to the JEPA Agreement are now recommended, along with the appointment
of the Mayor and Councilmember Aguilar to the Governing Board of the Authority.
ENVIRONMENTAL REVIEW
The Development Services Director has determined that amending a Joint Exercise of Powers Agreement
and appointment of Governing Board Members are not projects as defined under Section 15378(b)(5) of
the California Environmental Quality Act (CEQA) Guidelines because these actions involve only an
organizational or administrative activity of government that will not result in a direct or indirect physical
change in the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the
activity is not subject to CEQA.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
On May 8, 2012, the City and the District entered into a Bayfront Master Plan Financing Agreement (the
“Financing Agreement”) for the CVBMP. The Financing Agreement identified the rights and obligations of
each agency, with respect to the financing, development, and construction of public improvements,
infrastructure, and a planned convention center in the CVBMP. The Financing Agreement was
subsequently amended and restated to recognize additional rights and obligations of the respective
agencies, effective June 20, 2017 (the “Amended and Restated Financing Agreement”). The Financing
Agreement established that the City and the District would form a Joint Exercise of Powers Authority to
provide for or facilitate the financing of the convention center and other public improvements.
Pursuant to authority granted by Article 1 (commencing with §6500) of Chapter 5 of Division 7 of Title 1 of
the Government Code of the State of California (the “JPA Act”), the City entered into a JEPA Agreement with
the District, effective May 1, 2014. The JEPAAgreement established the Authority.
The Authority was formed for the sole purpose of assisting in the financing and refinancing of capital
improvement projects of the CVBMP, as contemplated by the Financing Agreement. The anticipated
sources of funds to secure debt issued by the Authority are addressed in the Financing Agreement, and
include, but are not limited to: District Ground Lease Revenues, lease payments payable from public funds,
City sales taxes, and City Transient Occupancy Taxes (TOT). Pursuant to California law and the JEPA
Agreement, the Authority will be a public entity separate and apart from the City and District. The debts,
liabilities, or obligations of the Authority will not be the debts, liabilities, or obligations of the City, the
District, or any representative of the City or District serving on the Governing Board of the Authority.
Agreement Amendment
Modifications to the JEPA Agreement are recommended by City and District staff, as follows (see
Attachment 1, Amended and Restated JEPAAgreement):
Clarifying that the Authority’s jurisdiction is limited to the CVBMP Area; and
Clarifying that the purpose of the Authority is the financing and refinancing of capital improvement
projects of the CVBMP, as contemplated by the Amended and Restated Financing Agreement; and
Providing for adoption of by-laws, if desired; and
Allowing for meetings of the Board to be held by teleconference, in accordance with the Brown Act;
and
Adding the office of Auditor, as required by statute; and
Providing that the method of disposition of assets between the City and the District following
dissolution will be subject to future agreement between the agencies; and
Adopting Chapter 2.56 of the Chula Vista Municipal Code as the Authority’s procurement policy,
unless and until the Board adopts a new procurement policy; and
Making minor edits to update definitions and document references and correcting typographical
errors.
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Governing Board
The Authority is a separate public entity, distinct from the City and the District, led by a Governing Board.
The Governing Board will consist of five (5) members, to be appointed as follows:
Two (2) members appointed by the City Council;
Two (2) members appointed by the District Board of Commissioners; and
One (1) member will be the Chula Vista appointed Port Commissioner.
All administrative functions of the Authority will be fulfilled by existing District staff (Executive Director,
Treasurer, Auditor, and Secretary).
Pursuant to Section 4(B) of the JEPA Agreement, Board Members shall be designated by action of the City
Council and the District Board of Commissioners, respectively. Board members must be members of the
governing body or employees of the City or District, as applicable. The term of office as a Board Member
shall terminate when such Board Member (i) shall be replaced by action of the City Council or the District
Board of Commissioners, as applicable; or (ii) shall cease to hold his or her respective office or employment
at the City or District, as the case may be. The successor to such officer or employee of the City or District
may become a member of the Board upon assuming such office or employment and being designated by the
appropriate authority.
The appointments of the Mayor and the City Councilmember representing District 2 (Councilmember
Aguilar) as the two City members of the Board are recommended.
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. Amending the Joint Exercise
of Powers Agreement and appointing Governing Board Members supports the Economic Vitality Goal,
Strategy 2.1 (provide policies, planning, infrastructure and services that are fundamental to an
economically strong, vibrant city) and Initiative 2.1.1 (implement the Bayfront Master Plan).
CURRENT-YEAR FISCAL IMPACT
Approving a resolution amending the JEPA Agreement and appointing Governing Board Members to the
Authority has no net fiscal impact. All costs associated with preparing this report are included in the
operating budget for the Development Services Department.
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ONGOING FISCAL IMPACT
There is no ongoing fiscal impact as a result of this action.
ATTACHMENTS
1. Proposed Amended and Restated Joint Exercise of Powers Agreement
Staff Contact: Tiffany Allen, Assistant Director of Development Services
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RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING THE AMENDED AND
RESTATED JOINT EXERCISE OF POWERS AGREEMENT
BY AND BETWEEN THE CITY OF CHULA VISTA AND THE
SAN DIEGO UNIFIED PORT DISTRICT CREATING THE
CHULA VISTA BAYFRONT FACILITIES FINANCING
AUTHORITY; APPOINTING THE MAYOR TO THE
GOVERNING BOARD OF THE CHULA VISTA BAYFRONT
FACILITIES FINANCING AUTHORITY; AND APPOINTING
THE COUNCILMEMBER REPRESENTING CITY COUNCIL
DISTRICT 2 TO THE GOVERNING BOARD OF THE CHULA
VISTA BAYFRONT FACILITIES FINANCING AUTHORITY
WHEREAS, on May 6, 2014, acting pursuant to Article I (commending with Section
6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California
(the “JPA Act”), the San Diego Unified Port District (the “District) adopted Resolution 2014-109
approving a Joint Exercise of Powers Agreement (the “JEPA Agreement”) with the City of
Chula Vista creating the Chula Vista Bayfront Facilities Financing Authority (the “Authority”);
and
WHEREAS, on May 13, 2014, acting pursuant to the JPA Act, the City Council of the
City of Chula Vista adopted Resolution 2014-070 approving the JEPA Agreement with the
District creating the Authority; and
WHEREAS, the City and the District have worked cooperatively to draft amendments to
the JEPA Agreement limiting the Authority’s jurisdiction to the Chula Vista Bayfront and
adopting Chapter 2.56 of the Chula Vista Municipal Code as the Authority’s procurement policy;
and
WHEREAS, the City Council desires to approve the Amended and Restated JEPA
Agreement as set forth in Exhibit 1, attached hereto and incorporated herein by reference as if set
forth in full; and
WHEREAS, pursuant to Section 4(B) of the JEPA Agreement, the Authority shall be
administered by a Governing Board, which shall be comprised of five members (Board
Members) consisting of (i) two members appointed by the City Council of the City, (ii) two
members appointed by the Port District Board of Commissioners, and (iii) the Port
Commissioner appointed by the City Council of the City; and
WHEREAS, pursuant to Section 4(B) of the JEPA Agreement, Board Members shall be
designated from time to time by action of the governing board of the City Council and the
District, respectively and must be members of the governing body or employees of the District or
the City, as applicable; and
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WHEREAS, adopting an Amended and Restated Joint Exercise of Powers Agreement
and appointing Governing Board Members are not projects as defined under Section 15378(b)(5)
of the California Environmental Quality Act (CEQA) Guidelines because these actions involve
only an organizational or administrative activity of government that will not result in a direct or
indirect physical change in the environment; therefore, pursuant to Section 15060(c)(3) of the
State CEQA Guidelines the activity is not subject to CEQA.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it does hereby adopt the Amended and Restated Joint Exercise of Powers Agreement
by and between the City of Chula Vista and the San Diego Unified Port District creating the
Chula Vista Bayfront Facilities Financing Authority in the form set forth in Exhibit 1 to this
Resolution, with such modifications as may be required or approved by the City Attorney.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it
does hereby authorize and recommend that the Mayor execute the subject Amended and Restated
Joint Exercise of Powers Agreement.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it
does hereby appoint the Mayor to the Governing Board of the Chula Vista Bayfront Facilities
Financing Authority.
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it
does hereby appoint the councilmember representing City Council District 2 to the Governing
Board of the Chula Vista Bayfront Facilities Financing Authority.
Presented by Approved as to form by
Kelly G. Broughton, FASLA Glen R. Googins
Director of Development Services City Attorney
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AMENDED AND RESTATED
JOINT EXERCISE OF POWERS AGREEMENT
by and between
CITY OF CHULA VISTA
and
SAN DIEGO UNIFIED PORT DISTRICT
creating the
CHULA VISTA BAYFRONT FACILITIES FINANCING AUTHORITY
dated as of
_______, 20__
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TABLE OF CONTENTS
Page
i
Section 1. Definitions ....................................................................................................................... 2
Section 2. Purpose ............................................................................................................................ 3
Section 3. Term ................................................................................................................................ 3
Section 4. The Authority .................................................................................................................. 3
A. Creation of the Authority .................................................................................... 3
B. Governing Board ................................................................................................. 4
C. Meetings of Board ............................................................................................... 4
D. Officers; Duties; Bonds ....................................................................................... 5
Section 5. Powers ............................................................................................................................. 7
Section 6. Termination of Powers .................................................................................................... 8
Section 7. Fiscal Year ....................................................................................................................... 8
Section 8. Disposition of Assets ....................................................................................................... 8
Section 9. Contributions and Advances............................................................................................ 8
Section 10. Bonds ............................................................................................................................... 8
A. Authority To Issue Bonds .................................................................................... 8
B. Bonds Limited Obligations.................................................................................. 8
Section 11. Agreement Not Exclusive ................................................................................................ 9
Section 12. Accounts and Reports ...................................................................................................... 9
A. Audits .................................................................................................................. 9
B. Audit Reports ...................................................................................................... 9
Section 13. Funds ............................................................................................................................... 9
Section 14. Conflict of Interest Code ............................................................................................... 10
Section 15. Breach ............................................................................................................................ 10
Section 16. Notices ........................................................................................................................... 10
Section 17. Withdrawal .................................................................................................................... 10
Section 18. Effectiveness.................................................................................................................. 10
Section 19. Severability .................................................................................................................... 10
Section 20. Successors; Assignment ................................................................................................ 10
Section 21. Amendment of Agreement ............................................................................................ 10
Section 22. Form of Approvals ........................................................................................................ 10
Section 23. Waiver of Personal Liability ......................................................................................... 11
Section 24. Section Headings ........................................................................................................... 11
Section 25. Counterparts .................................................................................................................. 11
Section 26. Designees ....................................................................................................................... 11
Section 27. Governing Law .............................................................................................................. 11
Section 28. Integration...................................................................................................................... 11
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AMENDED AND RESTATED
JOINT EXERCISE OF POWERS AGREEMENT
THIS AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT (this
“Agreement”), dated as of _______, 20__, is entered into by and between the CITY OF CHULA
VISTA (the “City”), a chartered city organized and existing under the laws of the State, and the SAN
DIEGO UNIFIED PORT DISTRICT (the “Port District”), a public corporation created by the
legislature in 1962 pursuant to Harbors and Navigation Code Appendix 1 (the “Port Act”), (each of the
City and the Port District, a “Member”).
DECLARATION OF PURPOSE
A. Chapter 5 of Division 7 of Title 1 of the Government Code (known as the “Joint
Exercise of Powers Act” and referred to herein as the “Act”)) authorizes the City and the Port District
to create a joint exercise of powers entity which has the power to exercise any powers common to the
City and the Port District and to exercise additional powers granted to it under the Act, including but
not limited to the issuance of bonds (defined under Section 6585(c) of the Act) pursuant to
Section 6588 thereof. This Agreement creates such an entity, which shall be known as the Chula Vista
Bayfront Facilities Financing Authority, for the purposes and to exercise the powers described herein.
This Agreement amends, restates, and supersedes that certain Joint Exercise of Powers Agreement
creating the Chula Vista Bayfront Facilities Financing Authority, dated as of May 1, 2014, by and
between the Port District and the City, in its entirety.
B. Article 4 of the Act (known as the “Marks-Roos Local Bond Pooling Act of 1985,”
Government Code Section 6584 et seq.) authorizes and empowers the Authority to issue bonds and to
purchase bonds issued by, or to make loans to, the City or the Port District or other public or private
entity for financing or providing interim financing for the acquisition, construction, installation and
improvement of public facilities and other public capital improvements, working capital, liability and
other insurance needs, or projects whenever there are significant public benefits, as determined by the
City or the Port District. The Marks-Roos Local Bond Pooling Act of 1985 further authorizes and
empowers the Authority to sell bonds so issued or purchased to public or private purchasers at public
or negotiated sale.
C. Each of the Members is empowered by law to promote economic development for the
benefit of the citizens of the City and the State.
D. Each of the Members may accomplish the purposes and objectives described in the
preceding preamble by various means, including through making loans or providing subsidies for
projects of public benefit that serve a public purpose.
E. Each Member is also empowered by law to acquire and dispose of real property for a
public purpose.
F. The Act authorizes the Members to create a joint exercise of powers entity with the
authority to exercise any powers common to the Members, as specified in this Agreement and to
exercise the additional powers granted to it in the Act and any other applicable provisions of the laws
of the State of California.
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G. A public entity established pursuant to the Act is empowered to issue or execute bonds,
notes, commercial paper or any other evidences of indebtedness, including leases or installment sale
agreements or certificates of participation therein (as defined in Section 6585(c) of the Act, “Bonds”),
and to otherwise undertake financing programs under the Act or other applicable provisions of the laws
of the State of California to accomplish its public purposes.
H. The Members have determined to specifically authorize a public entity authorized
pursuant to the Act to issue Bonds pursuant to the Act or other applicable provisions.
I. The Members have undertaken certain common efforts to create a master plan and
promote development of the approximately 535-acre Chula Vista Bayfront (“Chula Vista Bayfront”)
and have entered into that certain Amended and Restated Chula Vista Bayfront Master Plan Financing
Agreement dated June 20, 2017 (the “Financing Agreement”).
J. It is the desire of the Members to use a public entity established pursuant to the Act to
undertake the financing and/or refinancing of portions of the Chula Vista Bayfront project
contemplated by the Financing Agreement.
K. It is further the intention of the Members that the projects undertaken will result in
significant public benefits to the inhabitants of the jurisdictions of the Members.
TERMS OF AGREEMENT
Section 1. Definitions. Unless the context otherwise requires, the terms defined in this
Section shall for all purposes of this Agreement have the meanings herein specified.
Act. The term “Act” means Chapter 5 of Division 7 of Title 1 of the Government Code
(Section 6500 et seq.), as amended.
Agreement. The term “Agreement” means this Amended and Restated Joint Exercise of
Powers Agreement, as it may be amended from time to time, creating the Authority.
Authority. The term “Authority” means the Chula Vista Bayfront Facilities Financing
Authority created by this Agreement.
Board; Board of Directors. The terms “Board” or “Board of Directors” mean the governing
board of the Authority established pursuant to, and consisting of the members selected in accordance
with, Section 4.B. hereof.
Board of Port Commissioners. The term “Board of Port Commissioners” means the Board of
Port Commissioners of the Port District.
Bonds. The term “Bonds” has the meaning set forth in Declaration G above.
Brown Act. The term “Brown Act” means the Government Code provisions at Section 54950
et seq. governing the notice and agenda requirements for meetings of government agencies in the State
and any later amendments, revisions, or successor enactments.
City. The term “City” means the City of Chula Vista, a charter city organized and existing
under the laws of the State.
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City Council. The term “City Council” means the City Council of the City.
Fiscal Year. The term “Fiscal Year” has the meaning set forth in Section 7.
Government Code. The term “Government Code” means the Government Code of the State.
Harbors and Navigation Code. The term “Harbors and Navigation Code” means the Harbors
and Navigation Code of the State.
Indenture. The term “Indenture” means each indenture, trust agreement or other such
instrument pursuant to which Bonds are issued.
Member. The term “Member” or “Members” means the City and/or the Port District, as
appropriate.
Port District. The term “Port District” means the San Diego Unified Port District, a public
corporation created by the Legislature in 1962 pursuant to Harbors and Navigation Code Appendix 1
(the “Port Act”).
State. The term “State” means the State of California.
Section 2. Purpose. This Agreement is made pursuant to the Act for the purpose of
assisting in the financing and refinancing of capital improvement projects of the Members and other
activities of the Members as permitted under the Act relating to the Chula Vista Bayfront as
contemplated by the Financing Agreement or otherwise, by exercising the powers referred to in this
Agreement. The Authority’s jurisdiction shall be limited to the Chula Vista Bayfront (as depicted on
Schedule 1 attached hereto) unless otherwise provided by amendment of this Agreement.
Section 3. Term. This Agreement shall become effective as of the date hereof and shall
continue in full force and effect until terminated b y a supplemental agreement of the Port District and
the City; provided, however, that the initial terms of the members of the Board and the officers of the
Authority shall commence upon the appointment of the initial Board members, and the duties and
responsibilities of the members of the Board and the officers of the Authority (including, without
limitation, the responsibility to make or cause to be made an audit and audit reports) shall commence
therewith; and provided further, however, that in no event shall this Agreement terminate while any
Bonds or other obligations of the Authority remain outstanding under the terms of any indenture, trust
agreement, contract, agreement, lease, sublease or other instrument pursuant to which such Bonds are
issued or other obligations are incurred.
Section 4. The Authority.
A. Creation of the Authority. There is hereby created pursuant to the Act an
authority and public entity to be known as the “Chula Vista Bayfront Facilities Financing Authority.”
As provided in the Act, the Authority shall be a public entity separate from the City and the Port
District. The debts, liabilities and obligations of the Authority shall not constitute debts, liabilities or
obligations of the City or the Port District.
Within 30 days after the effective date of this Agreement or any amendment hereto, the
Authority will cause a notice of this Agreement or amendment to be prepared and filed with the office
of the Secretary of State of the State and the office of the Controller of the State in the manner set forth
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in Section 6503.5 of the Act. Within 30 days after the effective date of this Agreement or any
amendment hereto, a full copy of this Agreement and any amendment shall be filed with the Controller
of the State and the San Diego County Local Agency Formation Commission as set forth in Section
6503.6 of the Act.
The Board may adopt such by-laws, policies and procedures as it deems necessary or desirable
for the administration and operation of the Authority.
B. Governing Board. The Authority shall be administered by the Board, which
shall be comprised of five members consisting of (i) two members appointed by the City Council, (ii)
two members appointed by the Board of Port Commissioners, and (iii) the Port Com missioner
appointed by the City Council. Board members shall be designated from time to time by action of the
City Council and the Board of Port Commissioners, respectively, certified copies of which shall be
delivered to the Secretary. Board Members must be members of the governing body or employees of
the Port District or the City, as applicable. The term of office as a member of the Board shall terminate
when such member of the Board (i) shall be replaced by action of the City Council (with respect to
Board members appointed by it) or the Board of Port Commissioners (with respect to Board members
appointed by it), or (ii) shall cease to hold his or her respective office or employment at the City or the
Port District, as the case may be.
C. Meetings of Board.
(1) Time and Place. The Board shall hold its regular meetings at such
times as may be established by resolution of the Board or pursuant to bylaws of the Authority. The
Board may suspend the holding of regular meetings so long as there is no need for Authority business,
and provided that any action taken regarding the sale of Bonds shall occur by resolution placed on a
noticed and posted meeting agenda consistent with the requirements for regular meetings under the
Brown Act. At all times, each regular meeting of the Authority shall take place pursuant to a 72-hour
notice and agenda requirement or as otherwise provided by the Brown Act.
The Board may hold special meetings at any time and from time to time in accordance with the
Brown Act. A special meeting may be called at any time by the Secretary of the Authority or the
Executive Director of the Authority by delivering written notice to each Board member. Such written
notice may be dispensed with as to any Board member who at or prior to the time the meeting convenes
files with the Secretary of the Authority a written waiver of notice. Such waiver may be given by
telegram, telecopy or electronic mail. Such written notice may also be dispensed with as to any
member who is actually present at the meeting.
Nothing contained in this Agreement shall be construed to prevent the Board from holding
closed sessions during a regular or special meeting concerning any matter permitted by law to be
considered in a closed session.
All public hearings held by the Board shall be held during regular or special meetings of the
Board. Meetings of the Board may be held by teleconference in accordance with the provisions of the
Brown Act.
The Board may adjourn any meeting to a time and place specified in the order of adjournment.
Less than a quorum may so adjourn from time to time. If all Board members are absent from any
regular meeting or adjourned regular meeting, the Secretary or acting Secretary of the Authority may
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declare the meeting adjourned to a stated time a nd place and shall cause a written notice of the
adjournment to be given in the same manner as provided for special meetings unless such notice is
waived as provided for special meetings. A copy of the order or notice of adjournment shall be
conspicuously posted on or near the door of the place where the meeting was held within 24 hours after
the time of the adjournment. When a regular or adjourned regular meeting is adjourned as provided in
this Section, the resulting adjourned regular meeting is a regular meeting for all purposes. When an
order of adjournment of any meeting fails to state the hour at which the adjourned meeting is to be
held, it shall be held at the hour specified for regular meetings.
Any public hearing being held, or any hearing notic ed or ordered to be held at any meeting
may by order or notice of continuance be continued or recontinued to any subsequent meeting in the
same manner and to the same extent set forth herein for the adjournment of the meetings; provided
that, if the hearing is continued to a time less than 24 hours after the time specified in the order or
notice of hearing, a copy of the order or notice of continuance shall be posted immediately following
the meeting at which the order or declaration of continuance was adopted or made.
The Chair of the Board or the Executive Director of the Authority shall prepare or approve the
agenda of all meetings. Business will be conducted according to the agenda, except when determined
by the Board as permitted by law.
The presiding officer at the meeting shall determine the rules of conduct.
(2) Legal Notice. All regular and special meetings of the Board shall be
called, noticed, held and conducted subject to the provisions of the Brown Act.
(3) Minutes. The Secretary of the Authority shall cause minutes of all
meetings of the Board to be kept and shall, as soon as practicable after each meeting, cause a copy of
the minutes to be forwarded to each member of the Board and to the City and the Port District.
(4) Quorum. A majority of the members of the Board shall constitute a
quorum for the transaction of business, except that less than a quorum may adjourn meetings from time
to time. Any action or decision of the Authority shall be on motion duly approved by a majority of the
Board (i.e., three members) at a lawfully held meeting.
D. Officers; Duties; Bonds.
(1) The officers of the Authority shall be the Chair, the Vice Chair, the
Secretary, the Treasurer, the Auditor and the Executive Director.
(A) Chair. The Chair of the Authority shall be the Board member
selected to serve as Chair by action of the Board . The term of office shall be the same as the term of
the Mayor of the City. The Chair shall preside at all meetings of the Authority, and shall submit such
information and recommendations to the Board as he or she may consider proper concerning the
business, policies and affairs of the Authority.
(B) Vice Chair. The Vice Chair shall be the Board member who is
selected to serve as Vice-Chair by action of the Board. The term of office shall be the same as the term
of the Mayor of the City. The Vice Chair shall perform the duties of the Chair in the absence or
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incapacity of the Chair. In case of the resignation or death of the Chair, the Vice Chair shall perform
such duties as are imposed on the Chair, until such time as a new Chair is selected or appointed.
(C) Secretary. The Clerk of the Port District is hereby designated
as the Secretary of the Authority. The Secretary shall keep the records of the Authority, shall act as
Secretary at the meetings of the Authority and record all votes, and shall keep a record of the
proceedings of the Authority in a journal of proceedings to be kept for such purpose, and shall perform
all duties incident to the office.
(D) Treasurer and Auditor. The Chief Financial Officer/Treasurer
of the Port District is hereby designated as the Treasurer and Auditor of the Authority. Subject to the
applicable provisions of any trust agreement, indenture or resolution providing for a trustee or other
fiscal agent, the Treasurer is designated as a public officer or person who has charge of, handles, or
has access to any property of the Authority and, as such, shall file an official bond if so required by the
Board of the Authority pursuant to Section 6505.1 of the Act. The Treasurer shall have the powers,
duties and responsibilities specified in Section 6505.5 of the Act.
(E) Executive Director. The President/CEO of the Port District is
hereby designated the Executive Director of the Authority and shall be responsible for execution and
supervision of the affairs of the Authority. Except as otherwise authorized by resolution of the Board,
the Executive Director or the Executive Director’s designee shall sign all contracts, deeds and other
instruments executed by the Authority. In addition, subject to the applicable provisions of any trust
agreement, indenture or resolution providing for a trustee or other fiscal agent, the Executive Director
is designated as a public officer or person who has charge of, handles, or has access to any property of
the Authority and, as such, shall file an official bond if so required by the Board pursuant to
Section 6505.1 of the Act.
(2) So long as required by Sections 6505 and 6505.5 of the Act, the
Treasurer of the Authority shall prepare or cause to be prepared: (a) a special audit as required pursuant
to Section 6505 of the Act no less frequently than once in every two-year period during the term of
this Agreement; and (b) a report in writing on the first day of July, October, January and April of each
year to the Board, the City and the Port District, which report shall describe the amount of money held
by the Treasurer of the Authority for the Board, the amount of receipts since the last such report, and
the amount paid out since the last such report (which may exclude amounts held by a trustee or other
fiduciary in connection with any Bonds to the extent that such trustee or other fiduciary provides
regular reports covering such amounts).
(3) The services of the officers shall be without compensat ion by the
Authority unless said officers are otherwise compensated as employees of the City or the Port District.
The City and the Port District will provide such other administrative services as required by the
Authority, and shall not, unless otherwise determined by a resolution of the Board of the Authority,
receive economic remuneration from the Authority for the provision of such services.
(4) The Board shall have the power to appoint such other officers and
employees as it may deem necessary and to retain independent counsel, consultants and accountants.
(5) All of the privileges and immunities from liability, exemptions from
laws, ordinances and rules, all pension, relief, disability, worker’s compensation an d other benefits
which apply to the activities of officers, agents or employees of the Members when performing their
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respective functions within the territorial limits of their respective Member, shall apply to them to the
same degree and extent while engaged in the performance of any of their functions and duties
extraterritorially under the provisions of this Agreement.
(6) None of the officers, agents or employees, if any, directly employed by
the Authority shall be deemed, by reason of their employment by t he Authority, to be employed by
any Member or, by reason of their employment by the Authority, to be subject to any of the
requirements of any Member.
(7) The Members hereby confirm their intent and agree that, as provided
in Section 4.A hereof and in the Act, the debts, liabilities and obligations of the Authority shall not
constitute debts, liabilities or obligations of the City or the Port District.
(8) In any event, the Authority or the City shall cause all records regarding
the Authority’s formation, existence, operations, any Bonds issued by the Authority, obligations
incurred by it and proceedings pertaining to its termination to be retained for at least s ix (6) years
following termination of the Authority or final payment of any Bonds issued by the Authority,
whichever is later.
(9) Confirmation of officers shall be the first order of business at the first
meeting of the Authority, regular or special, held in each calendar year.
(10) No Board member, officer, agent or employee of the Authority, without
prior specific or general authority by a vote of the Board, shall have any power or authority to bind the
Authority by any contract, to pledge its credit, or to rende r it liable for any purpose in any amount.
Section 5. Powers. The Authority shall have any and all powers which are common powers
of the City and the Port District, and any and all powers separately conferred by law upon the Authority.
All such powers, whether common to the Members or separately conferred by law upon the Authority,
are specified as powers of the Authority to the extent permitted by law, except any such powers which
are specifically prohibited to the Authority by applicable law. To the extent required by the Act, the
Authority’s exercise of its powers is subject to the restrictions upon the manner of exercising the
powers of the City.
The procedures of Chapter 2.56 of the Chula Vista Municipal Code, as they may be amended
from time to time to the extent consented to by the Authority’s Board, shall be the Authority’s
procurement policy, to the extent applicable to procurement by the Authority, until and unless the
Authority Board adopts a new procurement policy.
The Authority is hereby authorized, in its own name, to do all acts necessary or convenient for
the exercise of its powers, including, but not limited to, any or all of the following: to sue and be sued;
to make and enter into contracts; to employ agents, consultants, attorneys, accountants, a nd employees;
to acquire, hold or dispose of property, whether real or personal, tangible or intangible, wherever
located; and to issue Bonds or otherwise incur debts, liabilities or obligations to the extent authorized
by the Act or any other applicable provision of law and to pledge any property or revenues or the rights
thereto as security for such Bonds and other indebtedness.
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Notwithstanding the foregoing, the Authority shall have any additional powers conferred under
the Act or under applicable law, insofar as such additional powers may be necessary to accomplish the
purposes set forth in Section 2 hereof.
Section 6. Termination of Powers. The Authority shall continue to exercise the powers
herein conferred upon it until the termination of this Agreement in accordance with Section 3 hereof.
Section 7. Fiscal Year. Unless and until changed by resolution of the Board, the Fiscal
Year of the Authority shall be the period from July 1 of each year to and including the following
June 30, except for the first Fiscal Year, which shall be the period from the date of this Agreement to
June 30, 2014.
Section 8. Disposition of Assets. Upon termination of this Agreement pursuant to
Section 3 hereof, any surplus money in possession of the Authority or on deposit in any fund or account
of the Authority shall be returned in proportion to any contributions made as required by Section 6512
of the Act. The Board is vested with all powers of the Authority for the purpose of concluding and
dissolving the business affairs of the Authority. After rescission or termination of this Agreement
pursuant to Section 3 hereof, all property of the Authority, both real and personal, shall be distributed
to the City and the Port District as they shall agree, subject to Section 9 hereof.
Section 9. Contributions and Advances. Contributions or advances of public funds and
of personnel, equipment or property may be made to the Authority by the City and the Port District for
any of the purposes of this Agreement. Payment of public funds may be made to defray the cost of
any such contribution. Any such advance made in respect of a revenue -producing facility shall be
made subject to repayment, and shall be repaid, in the manner agreed upon by the City or the Port
District, as the case may be, and the Authority at the time of making such advance as provided by
Section 6512.1 of the Act. It is mutually understood and agreed that neither the City nor the Port
District has any obligation to make advances or contributions to the Authority to provide for the costs
and expenses of administration of the Authority, even though either may do so. The City or the Port
District may allow the use of personnel, equipment or property in lieu of other contributions or
advances to the Authority.
Section 10. Bonds.
A. Authority To Issue Bonds. When authorized by the Act or other applicable
provisions of law and by resolution of the Board, the Authority may issue Bonds for the purpose of
raising funds for the exercise of any of its powers or to otherwise carry out its purposes under this
Agreement. Said Bonds shall have such terms and conditions as are authorized by the Board. Among
other things, the Marks-Roos Local Bond Pooling Act of 1985 authorizes the Authority to execute and
deliver or cause to be executed and delivered certificates of participation in a lease or installment sale
agreement with any public or private entity, or, at its option, to issue or cause to be issued bonds, rather
than certificates of participation, and enter into a loan agreement with the public or private entity.
B. Bonds Limited Obligations. The Bonds, including the principal and any
purchase price thereof, and the interest and premium, if any, thereon, shall be special obligations of
the Authority payable solely from, and secured solely by, the revenues, funds and other assets pledged
therefor under the applicable Indenture(s) and shall not constitute a charge against the gen eral credit
of the Authority. The Bonds shall not be secured by a legal or equitable pledge of, or lien or charge
upon or security interest in, any property of the Authority or any of its income or receipts except the
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property, income and receipts pledged therefor under the applicable Indenture(s). The Bonds shall not
constitute a debt, liability or obligation of the State or any public authority thereof, including the Port
District and the City, other than the special obligation of the Authority as described above. Neither the
faith and credit nor the taxing power of the State or any public authority thereof, including the Port
District and the City, shall be pledged to the payment of the principal or purchase price of, or the
premium, if any, or interest on the Bonds, nor shall the State or any public authority or instrumentality
thereof, including the Port District and the City, in any manner be obligated to make any appropriation
for such payment. The Authority shall have no taxing power.
No covenant or agreement contained in any Bond or Indenture shall be deemed to be a covenant
or agreement of any director, officer, agent or employee of the Authority in his or her individual
capacity, and no director or officer of the Authority executing a Bond shall be liable personally on such
Bond or be subject to any personal liability or accountability by reason of the issuance of such Bond.
Section 11. Agreement Not Exclusive. This Agreement shall not be exclusive and shall not
be deemed to amend or alter the terms of other agreements between the City and the Port District.
Section 12. Accounts and Reports. All funds of the Authority shall be strictly accounted
for in books of account and financial records maintained by the Authority, including a report of all
receipts and disbursements. The Authority shall establish and maintain such funds and accounts as
may be required by generally accepted accounting principles and by each Indenture for outstanding
Bonds (to the extent that such duties are not assigned to a trustee for owners of B onds). The books
and records of the Authority shall be open to inspection at all reasonable times by the City and the Port
District and their representatives.
The Authority shall require that each Indenture provide that the trustee appointed thereunder
shall establish suitable funds, furnish financial reports and provide suitable accounting procedures to
carry out the provisions of such Indenture. Said trustee may be given such duties in said Indenture as
may be desirable to carry out the requirements of this Section.
A. Audits. The Auditor of the Authority shall make or cause to be made an audit
of the books of accounts and financial records of the Authority in compliance with the requirements of
the Act. Any costs of the audit, including contracts with, or employment of, certified public
accountants or public accountants in making an audit pursuant to this Section, shall be borne by the
Authority and shall be a charge against any unencumbered funds of the Authority available for that
purpose.
B. Audit Reports. The Auditor of the Authority, as soon as practicable after the
close of each Fiscal Year, but in any event within the time necessary to comply with the requirements
of the Act, shall file a report of the audit performed pursuant to Subsection A of this Section as required
by the Act and shall send a copy of such report to public entities and persons in accordance with the
requirements of the Act.
Section 13. Funds. Subject to the provisions of each Indenture for outstanding Bonds
providing for a trustee to receive, have custody of and disburse funds which constitute Authority funds,
the Treasurer of the Authority shall receive, have the custody of and disburse Authority funds pursuant
to accounting procedures approved by the Board and shall make the disbursements required by this
Agreement or otherwise necessary to carry out the provisions and purposes of this Agreement.
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Section 14. Conflict of Interest Code. The Authority shall, by resolution, adopt a Conflict
of Interest Code to the extent required by law. Such Conflict of Interest Code may be the conflict of
interest code of the City or the Port District or the Authority may adopt a Conflict of Interest Code
separate from that of the City or Port District.
Section 15. Breach. If default shall be made by the City or the Port District in any covenant
contained in this Agreement, such default shall not excuse either the City or the Port District from
fulfilling its obligations under this Agreement, and the City and the Port District shall continue to be
liable for the payment of contributions and the performance of all conditions herein contained. The
City and the Port District hereby declare that this Agreement is entered into for the benefit of the
Authority created hereby and the City and the Port District hereby grant to the Authority the right to
enforce by whatever lawful means the Authority deems appropriate all of the obligations of each of the
Members. Each and all of the remedies given to the Authority hereunder or by any law now or hereafter
enacted are cumulative and the exercise of one right or remedy shall not impair the right of the
Authority to any or all other remedies.
Section 16. Notices. Notices to the City and the Port District hereunder shall be sufficient if
delivered to the Administrative Services/Finance Director of the City as to the City, and to the Chief
Financial Officer/Treasurer of the Port District, as to the Port District.
Section 17. Withdrawal. Neither the Port District nor the City may withdraw from this
Agreement prior to the end of the term of this Agreement determined in accordance with Section 3.
Section 18. Effectiveness. This Agreement shall become effective and be in full force and
effect and a legal, valid and binding obligation of the Port District and the City when each party has
executed a counterpart of this Agreement.
Section 19. Severability. Should any part, term, or provision of this Agreement be decided
by the courts to be illegal or in conflict with any law of the State, or otherwise be rendered
unenforceable or ineffectual, the validity of the remaining parts, terms or provisions hereof shall not
be affected thereby.
Section 20. Successors; Assignment. This Agreement shall be binding upon and shall inure
to the benefit of the successors of the parties. Except to the extent expressly provided herein, neither
party may assign any right or obligation hereunder without the consent of the other.
Section 21. Amendment of Agreement. This Agreement may be amended by supplemental
agreement executed by the Members at any time; provided, however, that this Agreement may be
terminated only in accordance with Section 3 hereof and, provided further, that such supplemental
agreement shall be subject to any restrictions contained in any Bonds or documents related to any
Bonds to which the Authority is a party.
Section 22. Form of Approvals. Whenever an approval is required in this Agreement,
unless the context specifies otherwise, it shall be given: (A) in the case of the Port District, by
resolution duly adopted by the Board of Port Commissioners of the Port District; (B) in the case of the
City, by resolution duly adopted by the City Council of the City; and (C) in the case of the Authority,
by resolution duly adopted by the Board. Whenever in this Agreement any consent or approval is
required, the same shall not be unreasonably withheld.
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Section 23. Waiver of Personal Liability. No Board member, officer or employee of the
Authority, the City or the Port District shall be individually or personally liable for any claims, losses,
damages, costs, injury and liability of any kind, nature or description arising from the actions of the
Authority or the actions undertaken pursuant to this Agreement, and the Authority shall defend such
Board members, officers or employees against any such claims, losses, damages, costs, injury and
liability. Without limiting the generality of the foregoing, no Board member, officer or employee of
the Authority or of any Member shall be personally liable on any Bonds or be subject to any personal
liability or accountability by reason of the issuance of Bonds pursuant to the Act and this Agreement.
To the fullest extent permitted by law, the Board shall provide for indemnification by the Authority of
any person who is or was a member of the Board, or an officer, employee or other agent of the
Authority, and who was or is a party or is threatened to be made a party to a proceeding by reason of
the fact that such person is or was such a member of the Board, or an officer, employee or other agent
of the Authority, against expenses, judgments, fines, settlements and other amounts actually and
reasonably incurred in connection with such proceeding, if such person acted in good faith and in the
course and scope of his or her office, employment or Authority. In the case of a crimin al proceeding,
the Board may provide for indemnification and defense of a member of the Board, or an officer,
employee or other agent of the Authority to the extent permitted by law.
Section 24. Section Headings. All section headings contained herein are for convenience of
reference only and are not intended to define or limit the scope of any provision of this Agreement.
Section 25. Counterparts. This Agreement may be executed in several counterparts, each
of which shall be an original and all of which shall constitute but one and the same instrument.
Section 26. Designees. Where reference is made to duties to be performed for the Authority
by a public official or employee, such duties may be performed by that person’s duly authorized deputy
or assistant. Where reference is made to actions to be taken by the Port District or the City, such action
may be exercised through the officers, staff or employees of the Port District or the City, as the case
may be, in the manner provided by law.
Section 27. Governing Law. This Agreement is made in the State, under the Constitution
and laws of the State and is to be construed as a contract made and to be performed in the State.
Section 28. Integration. This Agreement is the complete and exclusive statement of the
agreement among the parties with respect to the subject matter hereof, which supersedes and merges
all prior proposals, understandings, and other agreements, whether oral, written, or implied in conduct,
between the parties relating to the subject matter of this Agreement.
[Remainder of page intentionally left blank]
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by
their duly authorized representatives, as of the day and year first above written.
CITY OF CHULA VISTA
By:
Mayor
Attest:
City Clerk
Approved as to Form:
City Attorney
SAN DIEGO UNIFIED PORT DISTRICT
By:
Name: _____________________________________
Title: ______________________________________
Approved as to Form and Legality:
General Counsel
Assistant Deputy
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Schedule 1
[Map of Chula Vista Bayfront Attached]
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September 25, 2018 File ID: 18-0387
TITLE
REPORT GIVING NOTICE OF INTENT TO AMEND THE CONFLICT OF INTEREST CODE OF THE CITY OF
CHULA VISTA AND DIRECTING THE CITY CLERK AND CITY ATTORNEY TO RETURN TO COUNCIL TO
PRESENT THE PROPOSED AMENDMENTS WITHIN 90 DAYS
RECOMMENDED ACTION
Council accept the report.
SUMMARY
The Political Reform Act requires every local agency to review its Conflict of Interest Code to determine
whether amendments are needed. The City Clerk and City Attorney have reviewed the City's conflict of
interest code and its appendix, and have determined that amendments are necessary. Staff anticipates
returning to Council within 90 days to present the proposed amendments.
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)(5) of the State CEQA Guidelines because it an administrative activity that will not result
in direct or indirect physical changes 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 necessary.
DISCUSSION
On March 21, 2000, the Council adopted Ordinance No. 2807, adopting by reference the standardized
conflict of interest code contained in Title 2 of the California Code of Regulations, Section 18730, and any
amendments thereto that are adopted by the Fair Political Practices Commission. The ordinance requires
that the Council set forth by resolution an appendix that lists the officials and designated employees who
are required to file statements of economic interests and the disclosure categories under which each such
official and designated employee shall file.
The Political Reform Act requires that the City Council be notified no later than October 1 of each even-
numbered year whether amendments to the conflict of interest code are needed. Then, within 90 days,
amendments to the code must be submitted to the City Council for consideration.
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The City Clerk and City Attorney have reviewed the City's conflict of interest code and its appendix, and
have determined that amendments are necessary. The amendments are expected to include changes to the
list of designated filers to account for recently added and removed positions from the City’s classification
plan. Filing categories for current filers are being reviewed, so modification to their required disclosures
may also be recommended. Staff will return to Council within 90 days to present proposed amendments.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site specific
and consequently, the 500-foot rule found in California Code of Regulations section 18704.2(a)(1), is not
applicable to this decision. Staff is not independently aware, and has not been informed by any
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. Adoption of this item
supports the City’s goal of providing responsible public service and fostering public trust through an open
and ethical government.
CURRENT-YEAR FISCAL IMPACT
Acceptance of the report will have no impact on the general fund.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact.
ATTACHMENTS
None.
Staff Contact: Leah Larrarte
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September 25, 2018 File ID: 18-0395
TITLE
CONSIDERATION OF AMENDING THE CAPITAL IMPROVEMENT PROGRAM BUDGET FUNDED BY THE
MEASURE P SALES TAX; AMENDING THE INFRASTRUCTURE, FACILITIES, AND EQUIPMENT
EXPENDITURE PLAN; AND MAKING VARIOUS AMENDMENTS TO THE OPERATING AND CIP PROGRAM
BUDGETS
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY 2019 CAPITAL
IMPROVEMENT PROGRAM BUDGET BY ESTABLISHING NEW CIP PROJECTS: “ROHR PARK RESTROOMS
(MEASURE P),” “FIRE STATION 2 FUELING TANK REPLACEMENT (MEASURE P),” “MAX FIELD/LOMA
VERDE ACCESSIBILITY STUDY (MEASURE P),” AND “FIRE STATIONS REPAIR/REPLACEMENT PH II
(MEASURE P);” AMENDING THE INFRASTRUCTURE, FACILITIES, AND EQUIPMENT EXPENDITURE PLAN
TO INCLUDE SAID PROJECTS; AND AMENDING THE FY 2019 OPERATING AND CIP PROGRAM BUDGETS TO
APPROPRIATE FUNDS ACCORDINGLY (4/5 VOTE REQUIRED)
RECOMMENDED ACTION
Council adopt the resolution.
SUMMARY
On November 8, 2016, Chula Vista voters approved Measure P, authorizing a one-half cent sales tax
increase on retail sales within the City for a period of ten (10) years to repair failed or failing assets
thorough out the city. Currently sales tax revenues are projected to exceed the original estimates by
approximately $9.3 million over the 10-year period. Additional allocations of approximately $7.3 million
have been added to the infrastructure categories in the Infrastructure, Facilities and Equipment Plan over
the remainder of the 10-year period. A new category for Police Equipment has been added to the
Expenditure Plan to meet the equipment needs of the Police Department. Staff requests (1) creating new
capital improvement projects “Rohr Park Restrooms (Measure P)” (PRK0328), “Fire Station 2 Fueling Tank
Replacement (Measure P)” (GGV0242), “Max Field/Loma Verde Accessibility Study (Measure P)”
(PRK0333), and “Fire Stations Repair/Replacement Ph II (Measure P)” (GGV0243), and (2) amending the
Infrastructure, Facilities, and Equipment Expenditure Plan to include said projects, and (3) amending the
FY 2019 Operating and Capital Improvement Program budgets to add expenditure allocations from fund
balance for the amended Infrastructure, Facilities and Equipment Expenditure Plan, accelerating the repair
of critical assets.
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 activity consists of a
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governmental fiscal/administrative activity which does not result in a physical change in the environment;
therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to
CEQA. 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
At the Citizens’ Oversight Committee (COC) meeting held on July 26, 2018, City staff presented the
amended Infrastructure, Facilities and Equipment Expenditure Plan, which reflected year-to-date
allocations and highlighted the new Police Equipment category, SWAT Vehicle purchase and additional
Public Works projects. The updated plan included the estimated additional revenues of $9.3 million to be
collected over the 10 year timeframe of the temporary sales tax and the proposed allocation to
infrastructure categories of approximately $7.3 million. That leaves approximately $1.9 million of
remaining unanticipated revenues that will be allocated to the infrastructure categories at a future date. At
this time, staff is recommending $3.7 million of budget amendments in FY 2019. The COC reviewed the
amended plan, the proposed allocations, and recommended it be taken to the City Council for approval.
DISCUSSION
The City Council adopted the Infrastructure, Facilities and Equipment Expenditure Plan (Plan) on
December 6, 2016, relating to the expenditure of the Measure P Sales Tax. The amended Plan (see
Attachments A, Band C) adds a new Police Equipment category, a Swat Vehicle and new CIP projects for the
Rohr Park Restrooms, Fire Station 2 Fueling Tank Replacement, Max Field/Loma Verde Accessibility Study,
and Fire Stations Repair/Replacement Ph. II.
At this time, staff is requesting appropriations from fund balance and increased FY 2019 appropriated
revenues be added to the Plan as summarized in the table below, to projects that were included in the FY
2019 CIP budget orderived from the amended Plan and various expenditure categories.
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With the additional availability in fund balance and projected revenue increases, additional critical
repairs/replacements were added to the Plan for FY 2019 as summarized by Attachment C. The proposed
allocations will allow accelerating delivery of projects that include efficiencies to reduce future utility costs
(energy, water, etc.) in the project scope. The utility efficiency scope is generally classified as boilers,
chillers, plumbing and lighting related and is included in the projects associated with police facility repairs,
park infrastructure, libraries, and other public buildings repairs.
The projects and work associated with these budget adjustments is generally summarized as follows:
Police Equipment
Major equipment needs for the Police Department include: body worn cameras, video management system
and replacement of network servers. Use of body worn cameras has helped the Police Department gather
more evidence leading to successful prosecution of cases, as well as protecting both the officer and citizens
from allegations of excessive force or misconduct. The video management system will enable the Police
Department to view recordings from different cameras when conducting investigations and responding to
calls. In order to keep up with technology, network servers will be updated in 5-year increments.
Various City Building Facilities
Complete a general renovation of identified facility assets including: gate drive replacements, P.A. system
replacement, fuel tank replacement, roof replacements or repairs, plumbing repairs or replacements,
bathroom upgrades and/or renovations, repair or replace HVAC systems, flooring repairs or replacements,
repainting or resurfacing (interior and exterior), and make electrical repairs and lighting efficiencies. All
work will strive to meet water and energy efficiency goals and repair critical assets.
Park Infrastructure
Repair or replace park assets that have failed or reached the end of their life cycle including: smart
irrigation systems, play structures, playground surfacing, barbeque grills, tables, benches, trash
receptacles, drinking fountains, lighting, signage, and gazebos. All work will strive to meet water and
energy efficiency goals and repair critical assets.
Citywide Network
The overall computer network which provides all the connectivity between PC’s, servers, phones and other
network attached devices throughout the City is obsolete, no longer supported by the manufacturer and
vulnerable to security breaches. A Baseline Assessment Report of the network was completed by NCI
Partners in April 2017, and found that the majority of the network equipment was no longer available for
sale and 20% was beyond the “end of support” date and surmised that this was a “dangerous state to be in”.
Replacement of the network equipment will restore the security of the system as well as increasing the
efficiency in operations and providing the capability to deploy emerging “Smart City”
technologies/solutions to benefit the community. A redundant communications network will also provide
a more reliable backbone in the event of breakage, damage or outages. The Citywide network supports
projects that reduce traffic congestion on streets, reduce associated carbon emissions, enable enhanced
energy savings in City buildings, provide advanced citizen engagement through data sharing and
capabilities of virtual City Hall, and enable enhanced security at City parks and other locations.
The proposed changes for the amended 10-year Infrastructure, Facilities and Expenditure Plan are
summarized in the following summary table.
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DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council of the City of Chula Vista members and has
found no property holdings within 500 feet of the boundaries of the property, which is the subject of this
action. Consequently, this item does not present a disqualifying real property-related financial conflict of
interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political
Reform Act (Cal. Gov’t Code §87100,et seq.).
Staff is not independently aware, and has not been informed by any City of Chula Vista City Council
member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy
Community, Strong and Secure Neighborhoods and a Connected Community. This action supports the
Operational Excellence goal by communicating the City’s projected financial position for the current fiscal
year in an open and transparent manner. This transparency supports City Initiative 1.3.1. - “Foster public
trust through an open and ethical government.”
CURRENT-YEAR FISCAL IMPACT
Approval of the resolution will (1) create new capital improvement projects “Rohr Park Restrooms
(Measure P)” (PRK0328), “Fire Station 2 Fueling Tank Replacement (Measure P)” (GGV0242), “Max
Field/Loma Verde Accessibility Study (Measure P)” (PRK0333), and “Fire Stations Repair/Replacement Ph
II (Measure P)” (GGV0243), (2) amend the Infrastructure, Facilities, and Equipment Expenditure Plan to
include said projects, and (3) amend the FY 2019 Operating and Capital Improvement Program budgets to
add funding from fund balance to the amended Infrastructure, Facilities and Equipment Expenditure Plan,
accelerating the repair and replacement of critical assets.
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ONGOING FISCAL IMPACT
The Expenditure Plan anticipates that the one-half cent sales tax increase would generate an additional
$9.3 million for a total of approximately $186.3 million over the 10-year period. As part of the City’s annual
budget process, annual allocations to the Measure P Sales Tax Fund would be brought forward for City
Council consideration and action. Prior to City Council consideration of the City’s annual budget, staff will
prepare and present to the Citizens’ Oversight Committee for its review a spending plan for Measure P
revenues.
ATTACHMENTS
Attachment A – Proposed Amended Fiscal Year 2019 Measure P Budget
Attachment B –Amended Infrastructure, Facilities and Equipment Plan (10-Year Period)
Attachment C – Fiscal Year 2019 Plan Allocations
Staff Contact: David Bilby, FinanceDepartment
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RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AMENDING THE FY 2019 CAPITAL
IMPROVEMENT PROGRAM BUDGET BY ESTABLISHING
NEW CIP PROJECTS: “ROHR PARK RESTROOMS
(MEASURE P),” “FIRE STATION 2 FUELING TANK
REPLACEMENT (MEASURE P),” “MAX FIELD/LOMA
VERDE ACCESSIBILITY STUDY (MEASURE P),” AND
“FIRE STATIONS REPAIR/REPLACEMENT PH II (MEASURE
P);” AMENDING THE INFRASTRUCTURE, FACILITIES,
AND EQUIPMENT EXPENDITURE PLAN TO INCLUDE SAID
PROJECTS; AND AMENDING THE FY 2019 OPERATING
AND CIP PROGRAM BUDGETS TO APPROPRIATE FUNDS
ACCORDINGLY
WHEREAS, on November 8, 2016, the People of the City of Chula Vista approved
Measure P, adopting Ordinance No. 3371, which added Chapter 3.33 to the Chula Vista
Municipal Code, authorizing a one-half cent sales tax on retail sales within the City for a period
of ten years (the “Ordinance”); and
WHEREAS, the “Infrastructure, Facilities and Equipment Expenditure Plan” (the
“Expenditure Plan”) has been updated to reflect, where necessary, the ratification of Measure P;
and
WHEREAS, per Section 3.33.160 of the Ordinance, all revenue generated by the tax shall
be accounted for in the General Fund as a separate line item and will then be transferred to a
General Fund subfund entitled “Measure ‘P’ Sales Tax Fund;” and
WHEREAS, as required by Section 3.33.160.A, staff has created the 2016 Measure P
Sales Tax Fund (Fund 220) for the purpose of accounting for all revenues and expenditures of
Measure P monies; and
WHEREAS, the recommended additions to the Expenditure Plan include: the Rohr Park
Restrooms (PRK0328), Fire Station 2 Fueling Tank Replacement (GGV0242), Max Field/Loma
Verde Accessibility Study (PRK0333), and Fire Stations Repair/Replacement Ph. II (GGV0243);
and
WHEREAS, the recommended fiscal year 2019 Operating and CIP Program budget
amendments are all eligible items approved as part of the Expenditure Plan; and
WHEREAS,the recommended adjustments to the 2016 Measure P Sales Tax Fund
consist of additional current year expenditures in excess of projected revenues to be funded from
fund balance.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it does hereby: (1) establish new capital improvement projects: “Rohr Park Restrooms
(Measure P)” (PRK0328), “Fire Station 2 Fueling Tank Replacement (Measure P)” (GGV0242),
“Max Field/Loma Verde Accessibility Study (Measure P)” (PRK0333), and “Fire Stations
Repair/Replacement Ph II (Measure P)” (GGV0243); (2) amend the Infrastructure, Facilities, and
Equipment Expenditure Plan to include said projects, and (3) amend the fiscal year 2019
operating and capital improvement program budgets to make appropriations accordingly, in the
total amount of $3,673,769, as follows:
Summary of Operating Budget Amendments
Summary of CIP Program Budget Amendments
Presented by Approved as to form by
David Bilby Glen R. Googins
Director of Finance/Treasurer City Attorney
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MEASURE P (One-half cent Sales Tax)PROPOSED
FISCAL YEAR 2018-19 BUDGET ADOPTED PROPOSED AMENDED
BUDGET AMENDMENTS BUDGET
Fiscal Year Fiscal Year Fiscal Year
2018-19 2018-19 2018-19
Estimated Revenues:
Estimated 1/2 cent Sales Tax Revenues 18,085,000$ -$ 18,085,000$
ESTIMATED TOTAL REVENUES 18,085,000$ -$ 18,085,000$
Proposed Expenditures
Fire Vehicles 2,892,500$ (85,000)$ 2,807,500$
Police Vehicles 653,000$ 350,000$ 1,003,000$
Total Public Safety Vehicles 3,545,500$ 265,000$ 3,810,500$
Non-Safety City Vehicles (i.e. Public Works Crews) 1,749,000$ -$ 1,749,000$
Fleet Infrastructure -$ -$ -$
Total Non-Safety City Vehicles 1,749,000$ -$ 1,749,000$
Fire Equipment (i.e. breathing apparatus, radios, etc.) -$ -$ -$
Police Equipment (i.e. body worn cameras, video camera equip, etc.)*-$ 187,384$ 187,384$
Police Communications & Dispatch System 191,173$ (105,020)$ 86,153$
Total Public Safety Equipment 191,173$ 82,364$ 273,537$
Fire Station Repair/Replacements 2,220,238$ 810,617$ 3,030,855$
Police Facility Repairs -$ 492,000$ 492,000$
Total Public Safety Buildings 2,220,238$ 1,302,617$ 3,522,855$
Recreation Centers and Senior Center -$ -$ -$
Civic Center and South Chula Vista Libraries -$ -$ -$
Other Public Bldgs (i.e. Animal Care Facility & Living Coast DC)-$ 436,000$ 436,000$
Total Other Public Facilities -$ 436,000$ 436,000$
Sports Courts and Fields -$ -$ -$
Park Infrastructure -$ 1,550,000$ 1,550,000$
Street Pavement (Arterials/Collectors/Residential)-$ -$ -$
Traffic Signal System (Fiber Network)-$ -$ -$
Other Infrastructure (Storm Drains, Sidewalks, Trees etc)-$ -$ -$
Citywide Network Replacement -$ 35,700$ 35,700$
Citywide Telecommunications -$ -$ -$
Total Infrastructure -$ 1,585,700$ 1,585,700$
Projects to be Financed through Annual Capital Lease Payments
Police Communications & Dipatch System 170,239$ (83,862)$ 86,377$
Regional Communications System (RCS) 350,000$ -$ 350,000$
Fire Response Vehicles 300,000$ 85,000$ 385,000$
Total Public Safety Capital Lease Pmts 820,239$ 1,138$ 821,377$
Total Plan Expenditures 8,526,150$ 3,672,819$ 12,198,969$
Debt Service Principal 5,330,000$ -$ 5,330,000$
Debt Service Interest 2,791,000$ (750)$ 2,790,250$
Total Debt Service 8,121,000$ (750)$ 8,120,250$
Administrative Expenses:
Audit 5,000$ -$ 5,000$
Bond Administration 5,000$ 1,700$ 6,700$
TOTAL ADMINISTRATIVE EXPENSES 10,000$ 1,700$ 11,700$
Grand Total 16,657,150$ 3,673,769$ 20,330,919$
*New category added in FY2019
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Infrastructure,
Facilities and Equipment
Expenditure Plan
Funding Critical Priorities for
a Stronger, Safer Chula Vista
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Introduction
The City of Chula Vista, like many cities throughout the country, is struggling to properly fund our
infrastructure needs. The City of Chula Vista (City) has been developing and implementing its Asset
Management Program to operate and maintain the City’s natural and built infrastructure. Staff has
provided several updates to the City Council on the Asset Management Program. The presentations and
related publications can be found at www.chulavistaca.gov/infrastructure.
To address the City’s infrastructure needs and other City facilities and services, the City Council placed a
funding measure on the November 2016 ballot to address high priority infrastructure projects. On
November 8, 2016, Chula Vista voters approved Measure P, authorizing a temporary ½ cent sales tax
increase on retail sales within the City for a period of ten (10) years. Staff prepared the Infrastructure,
Facilities and Equipment Expenditure Plan to identify the recommended allocation of the temporary ½
cent sales tax revenues which were originally estimated to generate $16 million per year. The updated
2018 revenue estimates are projected to generate $18 million per year. The recommended funding is
based on the criteria established through the Asset Management Program which identifies the major
citywide infrastructure systems considered in critical need of repair or replacement. Analysis conducted
by consultants experienced in evaluating infrastructure system conditions, ranked infrastructure from
lowest to highest probability of failure, identified a timeline for repair and replacement, and estimated
associated cost. The sales tax revenues generated over the 10 year timeframe could address all
infrastructure assets designated with the highest probability of failure which, if not addressed, could
result in significant impact to public safety response or availability of highly used community
infrastructure.
Given the needs and limited availability of funds, the items proposed for funding under this plan
represent one-time allocations of funds and not ongoing commitments. Funding of ongoing
commitments, such as salary and benefit increases, is not included in the Plan as they would result in
continuing financial obligations beyond the ten year temporary tax period. Therefore, this Plan focuses
on the areas where one-time funds could be used to address critical deferred maintenance or
replacement of city infrastructure improving safety and reducing risk to the City as well as strengthening
the City’s overall financial condition by avoiding costly emergency repairs or further deterioration of
existing failing infrastructure.
The following are the highest priority items for funding:
• Pave, maintain and repair neighborhood streets and fix potholes
• Upgrade or replace aging police, fire and 9-1-1 emergency response facilities, vehicles and
equipment
• Replace storm drains to prevent sinkholes
• Upgrade irrigation systems to conserve water and save energy
• Make essential repairs to older libraries, senior center and recreation centers
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• Improve our Traffic Signal Systems
• Repair our Sports Fields and Courts and Park Infrastructure
This Infrastructure, Facilities and Equipment Expenditure Plan also includes long-term financing of
approximately $70.8 million in order to expedite the most critically needed repairs or replacements of
citywide infrastructure. City Council approved the issuance bonds via Resolution 2017-089 on June 6,
2017. This Plan also provides a component which identifies the potential annual allocations to projects
which could be included in the annual City Manager proposed Capital Improvement Budget for City
Council consideration and action.
Process for Creation of the Plan
Asset Management Program (AMP)
Since March 2014, the City has been working to enhance its asset management practices to promote
effective use of financial and physical resources and to develop a proactive approach to managing
infrastructure assets. As part of this effort, the City embarked on developing a comprehensive, citywide
Asset Management Program that includes the following asset management systems:
• Wastewater Management System
• Urban Forestry Management System
• Building Management System
• Drainage Management System
• Parks Management System
• Roadway Management System
• Fleet Management System
AMP Goals
The goal of the City’s Asset Management Program is to shift from reactive to proactive planning and
management of our infrastructure assets. The effort has helped the City to:
• Gain better understanding of the current state of the infrastructure and its future needs
• Proactively identify the asset replacement and rehabilitation needs and plan the budget and
resources accordingly
• Understand the probability and consequence of failure of each asset so that the City can
manage high risk assets before failure and minimize the City’s overall risk profile
• Minimize the life-cycle cost by incorporating latest technological advances in infrastructure to
develop efficient and effective preservation and restoration strategies
• Develop a consistent and defendable methodology for prioritizing work and budget expenditure
• Focus on high benefit-to-cost ratio to ensure the budget is spent in the right place, for the right
reason, at the right time, at the right cost
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• Be transparent by involving the City Council and the public in the development of the Asset
Management Program and the associated decisions
It is important for the City to gain a better understanding and quantify current and future asset needs,
asset risk profile, appropriate levels of service, cost to provide services, and financial requirements to
sustain the delivery of services. City staff has worked to communicate this improved understanding of
the infrastructure status with the public and decision makers. This analysis and information has enabled
City staff to develop management strategies that deliver the established levels of service while
managing individual assets to minimize life-cycle cost with an acceptable level of risk.
With this information, the City can better answer the following questions:
• Catch Up – What levels of work, resources, and budget are required to bring the asset back to
required conditional state to meet the safety, regulatory, and level of service requirements?
• Keep Up – Once the asset is caught up, what levels of work, resources, and budget are required
to keep up the level of service?
• Moving Forward – What levels of work, resources, and budget are required to sustain the level
of service?
Asset Management Program Advisory Committee
To help identify the needs of our community and to evaluate the state of our infrastructure, the City
formed the Asset Management Program Advisory Committee (AMPAC) in March 2014. The committee
continues to provide input into setting priorities for the Asset Management Program.
Members of the AMPAC are residents, business owners, community leaders, and stakeholders. AMPAC
members visited various asset management systems and observed and discussed the issues associated
with each system. AMPAC reviewed the City’s overall Asset Management Program methodology and
helped to guide and reach consensus on how to address infrastructure deficits.
A technical committee was formed within AMPAC to further engage the public in the understanding and
review of the asset management methodologies and logic used to define preservation and restoration
costs and schedules.
A comprehensive inventory of assets took place for each asset management system. Where accessible,
assets were visited and their conditions were assessed. Based on the condition, actions required to
restore the asset were identified, and the cost and timing were estimated. Through assessment of risk
(probability and consequence of failures), activities were prioritized and communicated regarding
urgency and the financial and resource requirements.
Public Outreach and Public Opinion Surveys
In July and August 2015, the City of Chula Vista engaged a research firm to conduct a public opinion
survey to identify resident priorities and secure input on potential local funding mechanisms (bond or
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sales tax) to upgrade, repair and maintain critical infrastructure. In addition, a survey mailer was
distributed to 54,000 households and an online version posted on the City website from January through
May 2016 to secure broad public input on infrastructure priorities. More than 3,000 responses were
received.
Public Opinion on Prioritizing Infrastructure Projects
Infrastructure, Facilities and Expenditure Plan
With the information gathered through the Asset Management process and community input, staff
developed this Plan taking into account projected available funding, priorities and timing considerations.
The actual allocations will be dependent on updated engineering cost estimates, project specific criteria
and available funding at the time the individual projects are proposed.
The following table presents the Infrastructure, Facilities and Expenditure Plan by Major Category. On
page 14 of this Plan is a 10-year outlook by fiscal year which includes long-term financing to expedite the
most critically needed repairs/replacement of citywide infrastructure.
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Infrastructure, Facilities and Equipment Expenditure Plan (By Major Category)
Plan Implementation
The ballot measure approved by the voters is anticipated to generate an estimated $186 million over a
10-year period. The projected revenues from the sales tax measure will address the items which are
considered high risk and in critical need of repair or replacement. The estimated revenues will also
address approximately 11% of the assets identified as having medium probability of failure.
The measure provides that any proposed expenditures of new sales tax revenues in the initial year will
be presented in a form consistent with this Plan as budget amendments for City Council consideration.
For each subsequent year, the spending plan, after review by a Citizen Oversight Committee, will be
included in the City Manager’s proposed budget for Council consideration as part of the annual budget
process.
The measure requires that expenditure of new sales tax revenues be tracked in a variety of ways. First
all new revenues will be accounted for in the General Fund as a separate line item. Second, an
independent audit of measure revenues and expenditures will be performed and presented for public
review. Finally, a Citizen’s Oversight Committee will review all proposed expenditure plans and all
audits.
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Note: This Plan is intended to guide City expenditures consistent with its terms. It does not, however,
constitute a binding legal commitment on the City Council to approve any of the expenditures proposed
herein. Provided that all proposed expenditures continue to be for City infrastructure, facilities and/or
equipment, this Plan may also be updated or amended from time to time by City staff, or by action of
the City Council, in order to address changed priorities, standards and/or funding availability. There
shall be no third party beneficiaries to the terms of this Plan. This Plan does not modify the terms of the
sales tax measure. To the extent of any conflict between the terms of this Plan and the sales tax
measure, the terms of the sales tax measure shall govern.
Summary Description of Major Infrastructure Categories
To follow are descriptions of the major infrastructure categories within the Expenditure Plan. Included
within several of the categories described below is an emphasis on repairing and replacing existing
inefficient systems and equipment with newer, more efficient systems. Funding for efficient systems
has been incorporated into the existing funding for police facility repairs, sports courts and fields, park
infrastructure, recreation and senior centers, libraries, and other public buildings. Specific projects will
include: citywide lighting upgrades; citywide irrigation upgrades; citywide HVAC equipment
replacement; and other facility and park efficiency upgrades. The projects will be consistent with the
priorities laid out in the original Measure P Expenditure Plan as well as the City's Smart Cities Plans. The
projects will extend the life of the City's facilities and parks, allow for easier and more efficient
maintenance, and provide flexibility to allocate proper maintenance funds are in place to "keep up" with
ongoing maintenance on newly repaired facilities. Measure P funds will not be used to provide ongoing
maintenance.
Street Pavement:
One of the greatest challenges a City faces is maintaining, preserving and restoring its paved streets.
The City of Chula Vista utilizes the Streetsaver Pavement Management System to develop a multi-year
pavement preservation program. The program has primarily been focused on sustaining more heavily
traveled major arterial and collector streets in good condition. Through the Pavement Management
System, city streets are given a Pavement Condition Index (PCI). The purpose of the pavement
management system is to enable the City to use its pavement dollars in the most cost effective manner
so that the overall pavement condition is as good as possible. The pavement preservation approach
significantly prolongs the life of existing pavements for a fraction of what it would cost to rehabilitate
the street once it reached failure. Unfortunately, local/residential streets have reached a failed state (0-
25 PCI) and the typical strategies used for preventative maintenance would be inadequate. These
residential streets would require major rehabilitation. The Measure P funding for Street Pavement
repair is intended repair these failed residential streets. Additional information is available in the
Roadway Assessment Plan located at www.chulavistaca.gov/infrastructure.
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Pavement Condition Index
PCI = 21 PCI = 40 PCI = 68 PCI = 75 PCI = 95
Other Infrastructure (Storm Drains, Sidewalks, Trees, Drainage Systems)
Much of the City’s storm drain system is more than 50 years old. There are approximately 13 miles of
corrugated metal pipes (CMP) located in the City of Chula Vista. Some of the CMP have been
deteriorating due to their age and corrodible nature of the material. According to the 2005 condition
assessment data, 1.8 miles of CMPs were recommended to be lined with CIPP liner and 0.4 miles of CMP
were recommended to be replaced immediately. In order to accelerate the replacement of CMP and
address infrastructure needs in Western Chula Vista, the City issued $10.5 million in debt but despite the
City’s effort to reline and replace as much as possible of the problematic CMP based on the 2005 study,
not all pipe failures could be predicted. In February 2015, a CMP located near one of the elementary
schools failed and created a sinkhole. In order to prevent future failures and to drive lower life-cycle
cost, the City utilized the asset management strategies to identify which CMPs have a greater risk of
failing. As a result, the City repurposed $1.2 million from streets to fund CMP replacement or lining.
Additional information on the City’s Drainage system is located in the Drainage Asset Management Plan
located at www.chulavistaca.gov/infrastructure.
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Traffic Signal System:
Proposed funding could advance traffic signal replacements and upgrades that focus on improving two
major objectives: safety and performance. Each objective listed has a direct correlation to enhancing
safety at intersections or of City roadways while also improving efficiency and operability of the traffic
signal systems. Tax measure funds could also be used as matching funds for federal, state and local
grants.
Improvements could include:
Replacement of aging or legacy traffic controllers and signal cabinet and equipment
Replacement of rusted, faded or missing traffic signal back-plates or signal heads
Replacement of obsolete pedestal-mounted traffic signals to overhead mounted traffic signals
Repair and/or replacement of broken inductive pavement loops and failing video cameras
Converting non-actuated intersections to actuated
Installation of pedestrian countdown indications and ADA compliant push buttons citywide
Replacement of obsolete 8” traffic signal lamps to standard 12” traffic signal lamps
Installation of Bicycle Detection System Citywide
Replacement of legacy communications equipment and expansion of City Fiber Optics, Wireless,
and/or Twisted Pair Communications
Expansion of Adaptive Signal System
Installation of Traffic Monitoring Devices:
o Closed-Circuit Television (CCTV) Cameras at intersection along Major Trolley, Freeway
interchanges, or major cross streets in the City of Chula Vista
o Expansion of Data Collection Systems to actively monitor Level-of-Service of City Streets
o Changeable Message Sign System along Main Street to mitigate special event traffic for
Sleep Train Amphitheater
o Installation of Traffic Calming Devices
Comprehensive Coordination Retiming Project Citywide
Fire Response Vehicles (Apparatus):
The Fire Department’s fire apparatus fleet is currently experiencing excessive years of service. This has
led to increased downtime, decreased reliability, and obsolete safety features. 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. The current fleet downtime report shows, for
every five days a fire apparatus is in service, it then requires one full day out of service for maintenance
and repair. Fire apparatus replacement standards call for 10 to 12 years for front line service with five
years in reserve capacity. Over half (10 of 17 fire apparatus) of the fire apparatus fleet exceeds 12 years
of service, three of which are beyond 20 years of service. Funds could be used to replace Fire Engines
and Fire Trucks that are overdue for replacement by excessive maintenance expenses or obsolete
equipment improving response times.
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Fire Equipment:
Major fire equipment needs include radio communications equipment, mobile data computer (MDC)
communications equipment, and respiratory protection breathing apparatus.
The City of Chula Vista participates in the Regional Communication System (RCS), which provides public
safety and public service radio communications to the San Diego County area. Federal Regulations,
require the upgrade of the RCS to become compliant. This requires its users to upgrade their handheld,
vehicle mounted, and dispatch radios to match the system backbone upgrade.
The Fire Department also uses mobile data computers (MDCs) to communicate critical emergency
incident information between response units and dispatch. These MDCs are ruggedized, military grade
laptops to withstand use during emergency response. These MDCs are beyond their useful life,
exceeding 10 years old and also no longer meet new operating system requirements to properly
communicate with dispatch.
The Fire Department is required to provide and maintain proper respiratory protection breathing
apparatus equipment for firefighting activity. The current fleet of breathing apparatus is between 13 to
15 years old and beyond the useful life. This has led to increased downtime, decreased reliability and
obsolete safety features. Breathing apparatus are utilized when fighting fires and critical to the
protection of firefighter personnel.
Police Equipment:
Major equipment needs for the Police Department include body worn cameras, video management
system and replacement of network servers. Use of body worn cameras has helped the Police
Department gather more evidence leading to successful prosecution of cases, as well as protecting both
the officer and citizens from allegations of excessive force or misconduct. The video management
system will enable the Police Department to view recordings from different cameras when conducting
investigations and responding to calls. In order to keep up with technology, network servers will be
updated in 5 year increments.
Fire Station Repairs/Replacements:
The Fire Department currently operates nine fire stations to provide a network of emergency response
service delivery. Three of these fire stations are well beyond their service life. Fire bay doors must be
enlarged to accommodate new fire apparatus and extensive termite treatment and repair is needed. In
addition, these fire stations are not compliant with seismic building codes. Also, as emergency response
volume increases beyond the current network of response capacity, existing Fire Station 4 will require
expansion to accommodate a secondary response unit in order to meet the service delivery demand.
Funding is needed in order for the expansion to move forward and improve response times to the
community.
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Police Vehicles:
There are 128 police vehicles in the Police Department. The vehicles in this fleet are technologically
complex and specially outfitted for law enforcement work. In addition to being very sophisticated pieces
of equipment they are subjected to very high levels of utilization. Approximately 41% of the fleet is
identified as needing replacement due to excessive repairs from high mileage and heavy use. The failure
of operating patrol vehicles would impact response times to the community.
Police Facility Repairs:
The Police facility is 12 years old and is in relatively good condition. Although, the facility is in good
condition it is given the highest rating possible for Consequence of Failure. This is because the facility
operates 24 hours a day, 7 days a week. The Asset Management Plan did identify a few items which
need immediate attention to avoid operational impacts with the most immediate being the replacement
of the heating and air conditioning system. Failure of the system could cause disruption to critical
service delivery and the ability to dispatch police personnel.
Public Safety Computer Aided Dispatch System (CAD):
The Computer Aided Dispatch (CAD) system is a critical Information and Technology (IT) component,
which serves as the lynchpin of the 911 emergency service frame work for the police department. CAD
is critical because it is used to dispatch police officers to citizens’ calls for service, and its efficiency and
performance directly impact response times and officer safety. In 2015, the police department
processed 97,632 calls for service in the CAD system. The department’s CAD system is also the central
repository for all records and data related to calls for service. It is a key performance measurement tool
used by supervisors and managers to make important tactical and strategic decisions. Finally, the CAD
system’s reliability and stability are critical because it must have continuous availability. In short, CAD is
the virtual and technical heart of all police department operations, especially pertaining to emergency
service delivery.
Public Safety Regional Communications System (RCS):
The Regional Communications System (RCS) provides public safety and public service radio
communications service to San Diego County, Imperial County, 24 incorporated cities, and a multitude
of other local, state, federal and tribal government agencies in the San Diego County/Imperial County
Region. The RCS infrastructure is approaching the end of its life cycle and must be replaced. The County
of San Diego has been working with member RCS partner agencies to plan for the replacement of the
RCS system with a “Next Generation” public safety interoperable communications system which will
comply with Federal Communications System (FCC) and the national Association of Public Safety
Communications Officials standards. These regulations set in place standards for communication
systems which allow for interoperability between different cities, agencies, and various state and federal
agencies. This has been done to ensure that during emergency events, various public safety and
emergency response personnel can communicate with each other. The City of Chula Vista currently has
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737 radios operating on the RCS. Based upon the radio count for the City, the approximate cost to the
City for participating in the Next Gen RCS project would be $4.5 million, not including financing cost. This
does not include the mandatory radio and equipment upgrades that would be needed at the City.
Other City Vehicles:
The “Other City Vehicles” comprises the remaining vehicles in the City’s inventory and supports all other
City provided services with the exception of those supporting the wastewater section. These vehicle
replacements have been deferred for many years resulting in excessive repair costs. The “out of
service” rates for many of these vehicles are at record highs impacting staff’s ability to provide services
to the community. Funding is needed to replace these vehicles (including lawnmowers, pick-ups, dump
trucks, forklifts, etc.) and help the City move toward a more environmentally friendly and economically
efficient fleet composition reducing emissions, fuel and related operating costs. In addition, this
category includes the Fleet Infrastructure project for replacement of fuel systems, installation of EV
charging stations, a heavy duty in-ground lift and replacement of the City’s obsolete fleet information
management system.
Sports Courts and Fields:
There is a high demand for use of the City’s various sports fields. Most sports fields are reserved for City
programs coordinated through the Youth Sports Council. The Youth Sports Council, which represents 22
member organizations in the City of Chula Vista, was formed in 1989 to assist the City in coordinating
youth sports programs and allocate field use in the City. Due to the combination of budgetary cuts and
water use restrictions, the City’s sports fields are overdue for renovation including re-seeding, aeration,
fertilizing, and in some cases sod replacement. The Public Works department prepares a Field
Management Report which identifies the condition of the various fields. The current Field Management
report, located at www.chulavistaca.gov/infrastructure identified four fields that are closed due to poor
condition of the fields. Another 20 were classified as fair condition but at risk of deteriorating further.
This significantly limits the number of fields available to the various organizations providing youth sports
activities in the City of Chula Vista which includes participation of over 10,000 kids.
With additional funding, the sports fields could be brought back to good standings and available for field
allocation. In addition, funds could be allocated to upgrade the irrigations systems to a smart system
allowing for efficient and effective water allocation which would assist in keeping the fields healthy even
through the drought.
In addition to the sports fields, there are a total of 62 tennis courts and basketball courts. Based on the
most recent Court Management Report, located at www.chulavistaca.gov/infrastructure a total of 31
courts are considered in fair condition due to worn surfaces, visible cracks or separation and lifting
which will require replacement.
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Infrastructure, Facilities and Equipment Expenditure Plan 2018
12
Amendment #2 July 2018
Park Infrastructure:
The City owns and manages 56 parks that cover approximately 560 acres. The largest park, Rohr Park,
covers nearly 60 acres. The asset management study identified several assets under the Park
Infrastructure category which included items such as barbeque grills, benches, drinking fountains,
irrigation controls, lights, picnic tables, play structures, playground surfacing, signage, trash bins, etc.
This Infrastructure, Facilities and Equipment Expenditure Plan recommends funding assets identified in
the AMP which are beyond their service life and in need of repair or replacement. Additional details are
available in the Parks Asset Management Plan located at www.chulavistaca.gov/infrastructure.
Recreation and Senior Centers:
In 2015, there were nearly 800,000 visits to our recreation facilities participating in sports, recreation,
senior programs and other activities. With nine recreation centers, two aquatic facilities and 56 parks,
the Recreation Department offers a myriad of opportunities for everyone to enjoy. Due to the high
volume use of these facilities any interruption or reduction in their availability directly impacts the City’s
residents. Additional funds could be used to replace roofs, water and waste water plumbing, heating
and air conditioning elements that have all reached or exceeded your expected service life.
More specifically, at the Norman Park Senior Center the condition assessment indicates that there is a
need to repair the perimeter exterior eaves, paint the interior and exterior of the building, repair the
kitchen and the restroom. At Loma Verde Recreation Center the pool pump system, decking, lighting
and shower areas are also in need of repair. The City’s newest recreation facilities, Salt Creek and
Montevalle, are now over 10 years old and are beginning to experience heating and air conditioning
failures and are in need of floor resurfacing throughout the gyms and classrooms. Other facilities, such
as the Women’s Club, are also in critical need of repair or replacement.
Civic Center Library and South Chula Vista Library:
The Chula Vista Civic Center Library opened its doors in 1976 and is celebrating its 40th Anniversary. The
Civic Center Library and South Chula Vista Library are highly valued and well used by the community.
Funding for the Library Department has been focused on increasing access to services and materials.
Over the years, through fundraising efforts by the Friends of the Chula Vista Library and Chula Vista
Public Library Foundation as well as State grants, the City has been able to do some cosmetic upgrades
to the interior of the buildings. At this point, there is a need to address some more significant
infrastructure repairs such as the roof, water and waste water plumbing, bathroom upgrades, heating
and air conditioning systems that have all reached or exceeded their expected useful life.
Other Public Buildings: (Animal Care Facility, Living Coast Discovery Center, Ken Lee Building)
In addition to the buildings discussed previously, there are other public buildings such as the Animal
Care Facility, Living Coast Discovery Center, and Ken Lee Building which are also in need of heating and
air conditioning replacements, roof and plumbing repairs, flooring replacements, restroom renovations
and upgrades to meet ADA standards.
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Infrastructure, Facilities and Equipment Expenditure Plan 2018
13
Amendment #2 July 2018
Citywide Network Replacement
The overall computer network which provides all the connectivity between PC’s, servers, phones and
other network attached devices throughout the City is outdated with 20% of the equipment beyond
end-of-life status, and a majority of the rest of the equipment within a year of end-of-life status. Due to
advancements in technology the City is proposing a complete restructuring of the City’s computer
network in order to bring it up to industry standards in terms of: 1) Capability to handle high-volumes of
data traffic; 2) Provide industry standard reliability and redundancy to ensure near 100% up-time across
the network; and 3) To ensure high levels of security and resistance to modern day malware/hacking
attacks. Measure P funds will be used to upgrade the network, which will directly benefit the community
by allowing for Smart City functionality which will reduce traffic congestion on streets, reduce associated
carbon emissions, enable enhanced energy savings in City buildings, provide advanced citizen
engagement through data sharing and capabilities of virtual City Hall, and enable enhanced security at
City parks and other locations.
In addition to updating the City’s network, the Public Works Department deploys approximately 45
laptops in the field in order for crews to be able to receive work orders in the field, and then capture
data regarding issues they see in the field back into our asset management systems. The current fleet of
laptops is over 5 years old and only has 3G wireless modems which allow them to transmit data back to
the Public Works Department. 3G’s data footprint in Chula Vista is shrinking due to wireless carriers
focusing on 4G and 5G deployments. There are many areas in the eastern portion of Chula Vista which
do not have 3G connectivity. This means crews must return back to the Public Works Department to
enter data. Types of data transmitted include photos and videos which require high-speed connections.
Additionally, older laptops are limited in terms of processing speed and memory, which affects overall
productivity of the laptop in a data rich environment. Measure P funds will be used to replace these
laptops which will provide time savings and better work productivity allocating more time for the crews
to be out in the field serving the public.
Citywide Telecommunications
Measure P funds will be used to upgrade its telecommunications system which is nearly 20 years old.
Although functioning, the back-end equipment required to keep the phone system working is no longer
manufactured. This requires the City to find replacement parts through used equipment if any
equipment fails. Due to the age of the phone system, it is becoming extremely difficult to find used
equipment to keep the system working. The phone system is also very limited in terms of how it can be
used in a modern business environment. New modern systems are run over a computer network (Voice
Over I.P. – VOIP) rather than by an analogue system. Analogue systems have significant limitations on
how a phone system can be used, while more modern systems allow for video conferencing, computer
screen sharing, call following (“desk phone” can be accessed regardless of location), and other features
which increase productivity and responsiveness for employees to the public. An updated
telecommunications system will also significantly reduce the risk of systematic failure.
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Infrastructure, Facilities and Equipment Expenditure Plan 2018
14
Amendment #2 July 2018
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FISCAL YEAR 2019 PLAN ALLOCATIONSCIP # Facility (Project)Description Cost Est. NotesGGV0232 Police Facility RepairsPolice Facility P.A. system replacement20,000$ P.A. System replacementCitywide Gate Drive Replacement:GGV0234 1. Public Building Repairs (3) $ 36,000 GGV0230 2. Fire Stations Repair/Replacement (6) $ 72,000 GGV0232 3. Police Facility Repairs (4) $ 72,000 PRK0328* Rohr Park Restrooms - Park Infrastructure Replace two failing restrooms at Rohr Park. Frequent plumbing calls, termite damage, roof leaks, and drainage issues $ 800,000 Numerous work orders forrestrooms due to old cast iron waste lines. Structure integrity failing. 20 WO FY 17/18GGV0242* Fire Station 2 Fueling Tank Replacement - Fire Stations Repair/ReplacementCurrent underground fuel tank 30 years old at end of useful life $ 738,617 End of useful life for fuel tanks,only diesel fuel in central are of cityPRK0326 Citywide Park InfrastructureReplace existing destressed park pathway lights $ 75,000 Replace failing light standards at parks citywide; Winding Walk Park - will replace 40 pathway lights due to rusted light basesPRK0326 Citywide Park InfrastructurePath/walkway repairs and ADA access Citywide parksand parking lots $ 75,000 Repair numerous walking paths at parksGGV0234 Other Public BuildingsPlumbing replacement and retrofit $ 50,000 Plumbing fixtures aging beyonduseful life at many facilities. Replace with new water efficient fixturesGGV0234 Other Public Buildings - Public WorksReplace failing boiler and chiller at Public Works $ 350,000 Replace failing assets; energy consumption can be reduced with more efficient unitsGGV0232 Police Facility RepairsReplace failing boilers and chillers at Police $ 400,000 Replace failing assets; energy consumption can be reduced with more efficient unitsGGV0231 Other Public Buildings - South Chula Vista Library Replace failing boiler and chillers at South Chula Vista Library $ - Replace failing assets; energy consumption can be reduced with more efficient unitsPRK0326 Park InfrastructureReplacement of drinking fountains at city parks $ 250,000 Drinking fountain and drainage repair or replacement; 23 WO FY17/18PRK0329 Park InfrastructureLauderbach Park repairs and improvements; $1m CAYouth Soccer grant received will be used to maximize impact of grant funding $ 250,000 Estimated completion Fall 2020PRK0383* Park Infrastructure Max Field / Loma Verde Accessibility Study $ 100,000 Estimated completion date Summer 2019GGV0236 Citywide Network ReplacementCitywide Network Replacement $ 35,700 Additional Project CostsN/A Police Vehicles (SWAT Equipment Truck) SWAT Vehicle Replacement $ 350,000 SWAT Vehicle ReplacementN/A Police Communications & Dispatch System CAD - Adjustment of cost allocations $ (188,882) CAD - Adjustment of cost allocationsN/A Body Worn Camera Equipment** Police Body Worn Cameras $ 9,384 Police Body Worn CamerasN/A Police Network Server ReplacementPolice Network Server Replacement $ 150,000 Police Network Server ReplacementN/A Video Management System & CamerasPolice Video Management System & Cameras $ 28,000 Video Management System & CamerasN/A Debt Service InterestBond Debt Service Interest $ (750) Bond Debt Service InterestN/A Bond AdministrationBond Administration Expenses $ 1,700 Bond Administration ExpensesTOTAL FISCAL YEAR 2019 PLAN ALLOCATIONS3,673,769$ *New category/project included in Infrastructure, Facilities and Equipment Expenditure Plan** Note: Service costs for Body Worn Camera program will be included in the General Fund baseline budget (approximately $212k per year).Replace failing gate motors, frequent service calls, past useful life with high usage36 WO in 6 months for gate drive issues. Various gates are at end or nearing end of useful life. Recommendation to replace 13 sites Citywide 2018-09-25 Agenda PacketPage 219
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September 25, 2018 File ID: 18-0442
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING HRP GRANT FUNDS
FROM THE DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT; AMENDING THE FY 2019
OPERATING AND CAPITAL IMPROVEMENT PROGRAM BUDGETS IN THE AMOUNT OF $629,450;
ESTABLISHING A NEW CIP PROJECT, “CIVIC CENTER LIBRARY OUTDOOR DECK ADDITION” (GGV0244);
AND APPROPRIATING THE HOUSEHOLD-RELATED PARKS (HRP) GRANT AWARD (4/5 VOTE REQUIRED)
RECOMMENDED ACTION
Council adopt the resolution.
SUMMARY
On February 7, 2017, the City Council approved the Development Services Department to submit an
application for a Household-Related Parks (HRP) Grant from the California Department of Housing
Community Development (Resolution No. 2017-023). HRP grant funds are to be used for the creation or
rehabilitation of parks and/or recreational facilities that benefit the community and add to the quality of
life. The City received a grant award of $629,450.
The resolution, if approved, would (1) accept HRP grant funds in the amount of $629,450 from the
Department of Housing and Community Development; (2) amend the FY 2019 Capital Improvement Budget
by establishing a new CIP Project, “Civic Center Library Outdoor Deck Addition” (GGV0244) in the amount
of $629,450; and, (3) amend the FY 2019 Operating Budget by appropriating the grant award revenues and
expenses in the amount of $629,450.
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 qualifies for a Categorical
Exemption pursuant to State CEQA Guidelines Section 15303 Class 3 (New Construction or Conversion of
Small Structures) and/or Section 15301 Class 1 (Existing Facilities) because it does not have a significant
effect on the environment. Thus, no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not Applicable.
DISCUSSION
The City was awarded a State of California grant for the Housing-Related Parks Program (HRP) for
$629,450. This program is funded through the passage of Proposition 1C, which creates incentives and
rewards local governments for building affordable housing by providing grant funds for needed parks in
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those communities. The grant funds may be used for the creation, development, or rehabilitation of park
and/or recreation facilities.
The Community Services Department views parks, libraries, and recreation as natural partners within the
Chula Vista community as they represent the commons, a public space that the community holds together
and is collectively our responsibility. This designated public space will promote civic participation, foster
local identity, and offer recreational, educational, and social engagement opportunities.
The Grand Terrace project is the epitome of bridging the commons together. The Grand Terrace project
will provide 24/7 access to Friendship park directly from a new north side entrance of the Civic Center
library. This entrance will enhance and make more accessible for our patrons the following recreational
programs and activities. The Community Services Department goals focus on reaching four pillars of
service that support L.I.F.E. (Leisure is for Everyone), which are youth, fitness, community events, and
intergenerational programs.
The first pillar is connecting our youth to the park. The library has well attended story times and programs
that allows the community to participate in recreational programs such as our Move to the Music program
that focuses on dance and movement. The youth will also be able to participate in Family game nights that
includes the Grand Terrace and the park with life sized games to play.
The second pillar is a direct focus on fitness. The Community Services Department plans to offer programs
such as Yoga, Tai Chi, and Aerobics with an effort to include the Grand Terrace and the park. The
Community Services Department will be able to promote a wide variety of fitness programs that will be
conducted on the Grand Terrace. Most notably, the Mommy and Me Fitness classes that will have
concurrent programs for both children and parents utilizing both the Grand Terrace and the park.
The third pillar is a plan to host Community Events such as Movies on the Terrace that will provide family
friendly movies, arts, and crafts that support both recreation and social engagement opportunities.
Lastly, the fourth pillar is a plan to support intergenerational programmingsuch as story walks that
encourages readers to walk to find out the ending of the story, a program geared towards
parents/grandparents and their children. Stroller walks will also be encouraged through a program called
Walking Conversation, where walking and getting to know your neighbors go hand in hand.
The initial outcomes are to increase awareness and foot traffic to both the Civic Center Library and
Friendship park tosupport recreational and social engagement opportunities.
Staff recommends utilizing this one time grant to enhance and provide new features and amenities at the
Civic Center Library and Friendship Park.
Staff will return to the City Council to award a construction contract at a future date.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council of the City of Chula Vista members and has
found no property holdings within 500 feet of the boundaries of the property, which is the subject of this
action. Consequently, this item does not present a disqualifying real property-related financial conflict of
interest under California Code of Regulations Title 2, section 18702.2(a)(11), for purposes of the Political
Reform Act (Cal. Gov’t Code §87100,et seq.).
Staff is not independently aware, and has not been informed by any City of Chula Vista City Council
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member, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy
Community, Strong and Secure Neighborhoods and a Connected Community. This action supports the
Operational Excellence goal by communicating the City’s projected financial position for the current fiscal
year in an open and transparent manner. This action supports the goals of a Healthy Community and a
Connected Community by making park space and recreation available for residents to enjoy.
CURRENT-YEAR FISCAL IMPACT
Approval of the resolution will (1) create a new capital improvement projects “Civic Center Library
Outdoor Deck Addition” (GGV0244), and (2) amend the FY 2019 Operating and Capital Improvement
Program budgets to add funding from the HRP grant in the amount of $629,450.
ONGOING FISCAL IMPACT
Upon completion of the project, the improvements will require routine City maintenance.
ATTACHMENTS
1. State of California Grant Agreement
Staff Contact: David Bilby, Finance Department
2018-09-25 Agenda Packet Page 222
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING HOUSEHOLD-RELATED
PARKS (HRP) GRANT FUNDS FROM THE DEPARTMENT
OF HOUSING AND COMMUNITY DEVELOPMENT;
AMENDING THE FY 2019 OPERATING AND CAPITAL
IMPROVEMENT PROGRAM BUDGETS IN THE AMOUNT
OF $629,450; ESTABLISHING A NEW CIP PROJECT, “CIVIC
CENTER LIBRARY OUTDOOR DECK ADDITION”
(GGV0244); AND APPROPRIATING THE (HRP) GRANT
AWARD
WHEREAS, on February 7, 2017, by Resolution No. 2017-023, the City Council
approved the Development Services Department to submit an application for a Household-
Related Parks (HRP) Grant from the Department of Housing Community Development; and
WHEREAS, the Household-Related Parks (HRP) Grant funds are to be used for the
creation or rehabilitation of parks and/or recreational facilities that benefit the community and
add to the quality of life; and
WHEREAS, staff recommends amending the Capital Improvement Program to establish
a new CIP project for the Civic Center Library Outdoor Deck Addition (GGV0244) and
appropriating $629,450 of HRP grant funding.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it does hereby (1) accept HRP grant funds in the amount of $629,450 from the
Department of Housing and Community Development, (2) amend the FY 2019 Capital
Improvement Budget by establishing a new CIP Project, “Civic Center Library Outdoor Deck
Addition” (GGV0244) in the amount of $629,450, and (3) amend the FY 2019 Operating Budget
by appropriating the grant award revenues and expenses in the amount of $629,450.
Presented by Approved as to form by
David Bilby Glen R. Googins
Director of Finance/Treasurer City Attorney
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September 25, 2018 File ID: 18-0432
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE BIDDING
REQUIREMENT AND APPROVING THE SECOND AMENDMENT TO THE MEDICAL DIRECTOR
AGREEMENT BETWEEN THE REGENTS OF THE UNIVERSITY OF CALIFORNIA AND THE CITY OF
CHULA VISTA FOR MEDICAL DIRECTOR SERVICES SUPPORTING THE FIRE DEPARTMENT’S ADVANCE
LIFE SUPPORT PROGRAM
RECOMMENDED ACTION
Council adopt the resolution.
SUMMARY
On December 10, 2013, the City Council approved Resolution No. 2013-249, approving a contract between
the City of Chula Vista and the Regents of the University of California, on behalf of the University of
California, San Diego, School of Medicine, Department of Emergency Medicine (UCSD) for medical director
services necessary for the Fire Department’s Advanced Life Support (ALS) program. UCSD has a unique
performance capability because it is the only academic medical center in San Diego County with the
resources, staffing and experience to provide medical direction and access to academic facilities for ALS
implementation. On September 22, 2015, the Council approved the First Amendment to the contract,
increasing compensation to UCSD and extending the term to September 30, 2018. The Fire Department
and UCSD would like to continue the relationship. Consequently, staff is asking the Council to waive the
bidding requirement and approve the Second Amendment, with no increase in compensation, for a term of
October 1, 2018 to September 30, 2021.
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 of the State CEQA Guidelines; 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
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DISCUSSION
Background
Emergency Medical Services (EMS) has become a core function of the fire service over the last 40 years.
Calls for medical assistance now constitute 85 percent of the requests for service in the City of Chula Vista.
CVFD has been a provider of Basic Life Support (BLS) for the last 30 years. BLS care does not involve the
administration of medication or performance of procedures based on independent assessment and
judgment. By contrast, Advanced Life Support (ALS) involves the delegated practice of medicine through
state, county, and provider agency regulations. The City Council has authorized the Fire Department’s
transition from BLS to ALS and the funding necessary for this transition. In 2013, the City entered into an
agreement with the County of San Diego, Health and Human Services Department, Emergency Medical
Services Division, to provide ALS. The provision of ALS requires a level of medical expertise to establish
proper policies and procedures, quality improvement and education.
The California Code of Regulations, Title 22, defines the scope of practice for paramedics. The state
delegates the administration of practice to the Local Emergency Medical Services Agency (LEMSA), which
determines what the local standard of medical care shall be. Standardized medical treatment protocols are
developed to guide paramedics in their delegated practice. Online medical direction is provided by
designated base hospitals through their physician staff. The provider agency can further define what their
policies shall be concerning medical care and equipment.
Accordingly, an integral member of the ALS team is the Medical Director. The Medical Director is a
physician who has received prehospital emergency medical services training and provides expertise that
guides the Department’s policies and procedures, quality improvement, and training activities. The Medical
Director also provides leadership in representing the City and the Fire Department within the medical
community as well. The Medical Director serves as a liaison and advocate for the City of Chula Vista and its
Fire Department, with outside regulatory agencies such as the State of California, County of San Diego, and
local groups such as the base hospital physicians and prehospital audit committees.
The primary role of the Medical Director for the provider agency is to assist in establishing policies and
procedures that enhance the quality and safety of pre-hospital care provided to the citizens and visitors of
Chula Vista. The Medical Director is an integral part of the quality improvement process where care
provided is evaluated and improvements are recommended.
Another role for the Medical Director is the direct provision or guidance of medical training, based on
evidenced-based medicine and best practices. The Medical Director serves as a liaison to state and county
agencies as well as to the local medical community.
The City does not employ staff with the level of expertise in this specific area of prehospital medical
practice of emergency medicine. Given the complexity of the ALS Program, this expertise is best obtained in
a contractual relationship for medical director services.
The City has contracted with UCSD for medical directions services since 2013. UCSD has a unique
performance capability because it is the only academic medical center in San Diego County with the
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resources, staffing and experience to provide medical direction and access to academic facilities for ALS
training. There are no other academic medical centers in San Diego County with the resources and ability
to provide the Medical Director services.UCSD is the only facility that participates in the training of
paramedics, emergency medicine physicians, and emergency medical services directors. As a designated
Base Hospital, they are active in the medical control of paramedic care.
UCSD is willing to have one of its doctors, Jennifer Farah, M.D., serve as the Medical Director for the Chula
Vista Fire Department, provided that the City is willing to compensate UCSD for her services in the amount
of $41,212 per annum for three (3) years. This amount is unchanged from the agreement expiring on
September 30, 2018. To have Dr. Farah serve as the Medical Director, it is necessary for the City Council to
waive the bidding requirements because of UCSD’s unique performance abilities, because of the
impracticality of soliciting bids for this necessary service, and because continuing to contract with UCSD is
in the City’s best interests.
DECISION-MAKER CONFLICT
Staff is not independently aware, nor has staff been informed by any City Councilmember, of any other fact
that may constitute a basis for a decision maker conflict of interest in this matter. This contractual
agreement is consistent with the cities strategic plan, as medical direction is a requirement of the ALS
program, which is incorporated within the plan itself.
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 addendum to the Chula
Vista Fire Department Fire Facility, Equipment, and Deployment Master Plan has a direct link to the City’s
strategic goals of Strong and Secure Neighborhoods.
CURRENT-YEAR FISCAL IMPACT
These funds are available in the current ALS Program budget.
ONGOING FISCAL IMPACT
The ongoing fiscal impact will be $41,212 per year as specified in the contract (total $123,635 for three
years). These funds are already included in the ALS Program budget, with no additional impact on the
general fund.
ATTACHMENTS
1 – Second Amendment
Staff Contact: Fire Chief
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RESOLUTION NO. ___
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING THE BIDDING REQUIREMENT
AND APPROVING THE SECOND AMENDMENT TO THE
MEDICAL DIRECTOR AGREEMENT BETWEEN THE
REGENTS OF THE UNIVERSITY OF CALIFORNIA AND THE
CITY OF CHULA VISTA FOR MEDICAL DIRECTOR
SERVICES SUPPORTING THE FIRE DEPARTMENT’S
ADVANCED LIFE SUPPORT PROGRAM
WHEREAS, providing Emergency Medical Services is a core function of the fire service,
with medical assistance constituting 85 percent of calls for service to the Chula Vista Fire
Department; and
WHEREAS, in 2013 the City entered into an agreement with the County of San Diego,
Health and Human Services Agency, Emergency Medical Services Division, to provide
Advanced Life Support (ALS) through its paramedics; and
WHEREAS, ALS requires medical expertise, through a Medical Director, a physician
with prehospital emergency medical services training who provides expertise that guides the
Department’s ALS policies and procedures, quality improvement and training; and
WHEREAS, the City does not employ staff with the level of expertise required for
medical direction in ALS; and
WHEREAS, the City has considered options for medical direction and has concluded that
the University of California, San Diego (UCSD) is uniquely qualified to provide medical
direction, through a Medical Director, in ALS to the Fire Department; and
WHEREAS, UCSD has a unique performance capability because it is the only academic
medical center in San Diego county with the resources, staffing and experience to provide
medical director services and access to academic facilities for ALS training; and
WHEREAS, there are no other academic medical centers in San Diego county with the
resources and ability to provide Medical Director services; and
WHEREAS, on December 10, 2013, the City Council approved Resolution 2013-249,
waiving the City’s bidding requirement because of the sole source exception and approving a
two-year contract with UCSD to have one of its doctors serve as the Medical Director for the
Chula Vista Fire Department; and
WHEREAS, the contract allows extension of the term with the written agreement of both
parties; and
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WHEREAS, on September 22, 2015, the City Council approved Resolution 2015-522,
waiving the City’s bidding requirement because of the sole source exception and approving the
First Amendment to the original contract, which extended the term to September 30, 2018 and
provided for a one-percent increase in compensation to UCSD for each year in the three-year
term, to $41,211.96; and
WHEREAS, Department and UCSD wish to continue the partnership by entering into a
Second Amendment for a three-year term, October 1, 2018 to September 30, 2021, in which Dr.
Jennifer Farah, M.D. will serve as the Medical Director for the Chula Vista Fire Department,
with no increase in compensation from the current amount of $41,211.96 per year.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that it waives the bidding requirement pursuant to Chula Vista Municipal Code Sections
2.56.090(B)(2) and 2.56.110(H)(2) as impractical and in the City’s best interests, because UCSD
is a unique provider of necessary Medical Director services for the Fire Department’s ALS
program.
BE IT FURTHER RESOLVED, by the City Council of the City of Chula Vista that it
approves the Second Amendment to the Medical Director Agreement Between the Regents of
the University of California and the City of Chula Vista for Medical Director Services supporting
the Fire Department’s Advanced Life Support Program, in the form presented, with such minor
modifications as may be required or approved by the City Attorney, a copy of which shall be
kept on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute
same.
Presented by Approved as to form by
Jim Geering Glen R. Googins
Fire Chief City Attorney
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September 25, 2018 File ID: 18-0419
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING COMPETITIVE BIDDING
AND APPROVING AN AGREEMENT WITH SOUTH COAST MEDICAL CLINIC TO PROVIDE MEDICAL
SERVICES TO THE CITY JAIL
RECOMMENDED ACTION
Council adopt the resolution.
SUMMARY
The Police Department recommends approval of an agreement with South Coast Medical Clinic to provide
medical services to the City Jail.
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.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not Applicable
DISCUSSION
The Police Department operates its own City Jail, which is a 50-bed Type I facility. The City Jail requires a
“responsible physician”, as outlined in California Board of State and Community Corrections (BSCC) Title
15 Minimum Standards For Local Detention Facilities. The “responsible physician” will provide medical
evaluations and/or write medical prescriptions as necessary for City Jail inmates, in a manner similar to
services provided to the general public.
South Coast Medical Clinic has provided satisfactory medical services for the City Jail since 2011. In
Resolution Number 2012-038, the Council waived the competitive bidding requirement and approved a
service agreement with South Coast, because the clinic was able to effectively meet the City Jail’s unique
needs and because the City’s interests were materially better served by continuing services with South
2018-09-25 Agenda Packet Page 238
P a g e | 2
Coast. For these same reasons, pursuant to Chula Vista Municipal Code sections 2.56.070 (B) (3) and (4),
the Police Department again recommends contracting with South Coast Medical Clinic.
Founded in 1981, South Coast Medical Clinic was created for the industrial and service community to
provide quality medical care and case management to companies and corporations. Open seven days a
week with limited waiting time, South Coast Medical Clinic offers customized treatment programs which
reduce medical costs. Founder Alex K. Han, MD has practiced occupational medicine for over 35 years, and
has helped numerous employers throughout San Diego develop cost effective case management programs.
The cost of inmate medical services by South Coast Medical Clinic is $80.00 for initial inmate visit, $40.00
for follow-up visits, general laboratory fees ranging from $25.00 to $40.00 per inmate per visit, and phone
consultations not to exceed $10.00 per consultation.
The agreement term with South Coast Medical Clinic for inmate medical services will be for an initial period
of one (1) year effective November 1, 2018, with renewal options for up to four (4) successive one-year
periods upon mutual agreement of both parties.
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. Inmate medical services
support the goal of Strong and Secure Neighborhoods by providing critical public safety services relating to
jail operations.
CURRENT-YEAR FISCAL IMPACT
Estimated annual inmate medical service costs of $13,000 are already included in the Police Department
budget. Approval of this resolution has no net fiscal impact to the General Fund.
ONGOING FISCAL IMPACT
Annual inmate medical service costs will be included in each year’s budget. Any increases in contract
pricing must be negotiated between the City and the contractor.
ATTACHMENTS
Attachment 1: Agreement with South Coast Medical Clinic to provide Medical Services to the City Jail
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P a g e | 3
Staff Contact: Jonathan Alegre, Police Department
2018-09-25 Agenda Packet Page 240
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA WAIVING COMPETITIVE BIDDING AND
APPROVING AN AGREEMENT WITH SOUTH COAST
MEDICAL CLINIC TO PROVIDE MEDICAL SERVICES TO
THE CITY JAIL
WHEREAS, the Police Department operates its own City Jail, which is a 50-bed Type I
facility; and
WHEREAS, the Police Department jail facility requires a “responsible physician”, as
outlined in California Board of State and Community Corrections Title 15 Minimum Standards
For Local Detention Facilities; and
WHEREAS, the “responsible physician” will provide medical evaluations and/or write
medical prescriptions as necessary for City Jail inmates, in a manner similar to services provided
to the general public; and
WHEREAS, the City Jail has unique needs for medical services; and
WHEREAS, South Coast Medical Clinic has provided satisfactory medical services to
the City Jail since 2011; and
WHEREAS, the City Council waived competitive bidding and approved contracting with
South Coast Medical Clinic in Resolution 2012-038 because of South Coast effectively served
the jail’s unique needs and because the City’s interests were materially better served; and
WHEREAS, for the foregoing reasons, pursuant to Chula Vista Municipal Code sections
2.56.070 (B) (3) and (4), the Police Department recommends continuing to contract with South
Coast Medical Clinic.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it waives the competitive bidding requirement, because the City’s interests are
materially better served and because South Coast Medical Clinic has unique performance
capabilities; and
BE IT FUTHER RESOLVED by the City Council of the City of Chula Vista that is
approves the Agreement with South Coast Medical Clinic to provide medical services to the City
Jail, in the form presented, with such minor modifications as may be required or approved by the
City Attorney, a copy of which shall be kept on file in the Office of the City Clerk, and
authorizes and directs the Mayor to execute same.
//
//
2018-09-25 Agenda Packet Page 241
Presented by
Roxana Kennedy
Chief of Police
Approved as to form by
Glen R. Googins
City Attorney
2018-09-25 Agenda Packet Page 242
1 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
CITY OF CHULA VISTA
CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT
WITH SOUTH COAST MEDICAL CLINIC
TO PROVIDE MEDICAL SERVICES TO THE CITY JAIL
This Agreement is entered into effective as of November 1, 2018 (“Effective Date”) by and between the City of
Chula Vista, a chartered municipal corporation (“City”) and South Coast Medical Clinic,a California
Corporation,(“Contractor/Service Provider”) (collectively, the “Parties” and, individually, a “Party”) wi th
reference to the following facts:
RECITALS
WHEREAS,the Police Department operates its own City Jail, which is a 50-bed Type I facility;and
WHEREAS,the Police Department jail facility requires a “responsible physician,”as outlined in the
California Board of State and Community Corrections (BSCC) Title 15 Minimum Standards For Local
Detention Facilities; and
WHEREAS, the “responsible physician” will provide medical evaluations and/or write medical
prescriptions as necessary for City Jail inmates,in a manner similar to services provided to the general public;
and
WHEREAS,Contractor/Service Provider warrants and represents that it is experienced and staffed in a
manner such that it can deliver the services required of Contractor/Service Provider to City in accordance with
the time frames and the terms and conditions of this Agreement.
[End of Recitals. Next Page Starts Obligatory Provisions.]
2018-09-25 Agenda Packet Page 243
2 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
OBLIGATORY PROVISIONS
NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other
good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and
Contractor/Service Provider hereby agree as follows:
1.SERVICES
1.1 Required Services.Contractor/Service Provider agrees to perform the services, and deliver to City the
“Deliverables” (if any) described in the attached Exhibit A, incorporated into the Agreement by this
reference, within the time frames set forth therein, time being of the essence for this Agreement. The
services and/or Deliverables described in Exhibit A shall be referred to herein as the “Required Services.”
1.2 Reductions in Scope of Work.City may independently, or upon request from Contractor/Service
Provider, from time to time, reduce the Required Services to be performed by the Contractor/Service
Provider under this Agreement. Upon doing so, City and Contractor/Service Provider agree to meet and
confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated
with the reduction.
1.3 Additional Services.Subject to compliance with the City’s Charter, codes, policies, procedures and
ordinances governing procurement and purchasing authority, C ity may request Contractor/Service Provider
provide additional services related to the Required Services (“Additional Services”). If so, City and
Contractor/Service Provider agree to meet and confer in good faith for the purpose of negotiating an
amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the
Additional Services shall be charged and paid consistent with the rates and terms already provided th erein.
Once added to Exhibit A, “Additional Services” shall also become “Required Services” for purposes of this
Agreement.
1.4 Standard of Care.Contractor/Service Provider expressly warrants and agrees that any and all
Required Services hereunder shall be performed in accordance with the highest standard of care exercised
by members of the profession currently practicing under similar conditions and in similar locations.
1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be
conceptual approval only and does not relieve the Contractor/Service Provider of responsibility for
complying with all laws, codes, industry standards, and liability for damages caused by negligent acts,
errors, omissions, noncompliance with industry standards, or the willful misconduct of the
Contractor/Service Provider or its subcontractors.
1.6 Security for Performance. In the event that Exhibit A Section 4 indicates the need for
Contractor/Service Provider to provide additional security for performance of its duties under this
Agreement,Contractor/Service Provider shall provide such additional security prior to commencement of its
Required Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by the
City Attorney.
1.7 Compliance with Laws.In its performance of the Required Services,Contractor/Service Provider
shall comply with any and all applicable federal, state and local laws, including the Chula Vista Municipal
Code.
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3 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
1.8 Business License.Prior to commencement of work,Contractor/Service Provider shall obtain a
business license from City.
1.9 Subcontractors. Prior to commencement of any work,Contractor/Service Provider shall submit for
City’s information and approval a list of any and all subcontractors to be used by Contractor/Service
Provider in the performance of the Required Services.Contractor/Service Provider agrees to take
appropriate measures necessary to ensure that all subcontractors and personnel utilized by the
Contractor/Service Provider to complete its obligations under this Agreement comply with all applicable
laws, regulations, ordinances, and policies, whether federal, state, or local. In addition, if any subcontractor
is expected to fulfill any responsibilities of the Contractor/Service Provider under this Agreement,
Contractor/Service Provider shall ensure that each and every subcontractor carries out the
Contractor/Service Provider’s responsibilities as set forth in this Agreement.
1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date or
Contractor/Service Provider’s commencement of the Required Services hereunde r, and shall terminate when
the Parties have complied with all their obligations hereunder; provided, however, provisions which
expressly survive termination shall remain in effect.
2.COMPENSATION
2.1 General. For satisfactory performance of the Required Services, City agrees to compensate
Contractor/Service Provider in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard
terms for billing and payment are set forth in this Section 2.
2.2 Detailed Invoicing.Contractor/Service Provider agrees to provide City with a detailed invoice for
services performed each month, within thirty (30) days of the end of the month in which the services were
performed, unless otherwise specified in Exhib it A. Invoicing shall begin on the first of the month
following the Effective Date of the Agreement. All charges must be presented in a line item format with
each task separately explained in reasonable detail. Each invoice shall include the current mon thly amount
being billed, the amount invoiced to date, and the remaining amount available under any approved budget.
Contractor/Service Provider must obtain prior written authorization from City for any fees or expenses that
exceed the estimated budget.
2.3 Payment to Contractor/Service Provider. Upon receipt of a properly prepared invoice and
confirmation that the Required Services detailed in the invoice have been satisfactorily performed, City
shall pay Contractor/Service Provider for the invoice amount within thirty (30) days. Payment shall be made
in accordance with the terms and conditions set forth in Exhibit A and section 2.4, below. At City’s
discretion, invoices not timely submitted may be subject to a penalty of up to five percent (5%) of the
amount invoiced.
2.4 Retention Policy.City shall retain ten percent (10%) of the amount due for Required Services
detailed on each invoice (the “holdback amount”). Upon City review and determination of Project
Completion, the holdback amount will be issued to Contractor/Service Provider.
2.5 Reimbursement of Costs. City may reimburse Contractor/Service Provider’s out-of-pocket costs
incurred by Contractor/Service Provider in the performance of the Required Services if negotiated in
advance and included in Exhibit A. Unless specifically provided in Exhibit A,Contractor/Service Provider
shall be responsible for any and all out -of-pocket costs incurred by Contractor/Service Provider in the
performance of the Required Services.
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4 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
2.6 Exclusions.City shall not be responsible for payment to Contractor/Service Provider for any fees or
costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A.
City shall also not be responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of
or related to the errors, omissions, negligence or acts of willful misconduct of Contractor/Service Provider,
its agents, employees, or subcontractors.
2.7 Payment Not Final Approval.Contractor/Service Provider understands and agrees that payment to
the Contractor/Service Provider or reimbursement for any Contractor/Service Provider costs related to the
performance of Required Services does not constitute a City final decision regarding wheth er such payment
or cost reimbursement is allowable and eligible for payment under this Agreement, nor does it constitute a
waiver of any violation by Contractor/Service Provider of the terms of this Agreement. If City determines
that Contractor/Service Provider is not entitled to receive any amount of compensation already paid, City
will notify Contractor/Service Provider in writing and Contractor/Service Provider shall promptly return
such amount.
3.INSURANCE
3.1 Required Insurance.Contractor/Service Provider must procure and maintain, during the period of
performance of Required Services under this Agreement, and for twelve months after completion of
Required Services, the policies of insurance described on the attached Exhibit B, i ncorporated into the
Agreement by this reference (the “Required Insurance”). The Required Insurance shall also comply with all
other terms of this Section.
3.2 Deductibles and Self-Insured Retentions.Any deductibles or self-insured retentions relating to the
Required Insurance must be disclosed to and approved by City in advance of the commencement of work.
3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitt ed to
transact business in the State of California with a current A.M. Best’s rating of A V or better, or, if
insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of
Eligible Surplus Lines Insurers (LESLI) with a current A.M. Best’s rating of no less than A X. For
Workers’ Compensation Insurance, insurance issued by the State Compensation Fund is also acceptable.
3.4 Subcontractors.Contractor/Service Provider must include all sub-Contractor/Service Providers/sub-
contractors as insureds under its policies and/or furnish separate certificates and endorsements
demonstrating separate coverage for those not under its policies. Any separate coverage for sub -
Contractor/Service Providers must also comply with the terms of this Agreement.
3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as
additional insureds with respect to any policy of general liability, automobile, or pollution insurance
specified as required in Exhibit B or as may otherwise be specified by City’s Risk Manager.. The general
liability additional insured coverage must be provided in the form of an endorsement to the
Contractor/Service Provider’s insurance using ISO CG 2010 (11/85) or its equivalent; such endorsement
must not exclude Products/Completed Operations coverage.
3.6 General Liability Coverage to be “Primary.”Contractor/Service Provider’s general liability coverage
must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers.
Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is
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5 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
wholly separate from the insurance provided by Contractor/Service Provider and in no way relieves
Contractor/Service Provider from its responsibility to provide insurance.
3.7 No Cancellation.No Required Insurance policy may be canceled by either Party during the required
insured period under this Agreement, except after thirty days’ prior written notice to the City by certif ied
mail, return receipt requested. Prior to the effective date of any such cancellation Contractor/Service
Provider must procure and put into effect equivalent coverage(s).
3.8 Waiver of Subrogation.Contractor/Service Provider’s insurer(s) will provide a Waiver of
Subrogation in favor of the City for each Required Insurance policy under this Agreement. In addition,
Contractor/Service Provider waives any right it may have or may obtain to subrogation for a claim against
City.
3.9 Verification of Coverage. Prior to commencement of any work,Contractor/Service Provider shall
furnish City with original certificates of insurance and any amendatory endorsements necessary to
demonstrate to City that Contractor/Service Provider has obtained the Required Insurance in compliance
with the terms of this Agreement. The words “will endeavor” and “but failure to mail such notice shall
impose no obligation or liability of any kind upon the company, its agents, or representatives” or any similar
language must be deleted from all certificates. The required certificates and endorsements should otherwise
be on industry standard forms. The City reserves the right to require, at any time, complete, certified copies
of all required insurance policies, including en dorsements evidencing the coverage required by these
specifications.
3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution
Liability and/or Errors & Omissions coverage are required and are provided on a claims -made form, the
following requirements also apply:
a.The “Retro Date” must be shown, and must be before the date of this Agreement or the
beginning of the work required by this Agreement.
b.Insurance must be maintained, and evidence of insurance must be provided, for at least five (5)
years after completion of the work required by this Agreement.
c.If coverage is canceled or non-renewed, and not replaced with another claims-made policy form
with a “Retro Date” prior to the effective date of this Agree ment, the Contractor/Service Provider must
purchase “extended reporting” coverage for a minimum of five (5) years after completion of the work
required by this Agreement.
d.A copy of the claims reporting requirements must be submitted to the City for re view.
3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be
construed to limit the Contractor/Service Provider’s obligations under this Agreement, including Indemnity.
3.12 Additional Coverage. To the extent that insurance coverage provided by Contractor/Service
Provider maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be
entitled to coverage for higher limits maintained.
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6 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
4.INDEMNIFICATION
4.1.General. To the maximum extent allowed by law,Contractor/Service Provider shall protect, defend,
indemnify and hold harmless City, its elected and appointed officers, agents, employees and volunteers
(collectively, “Indemnified Parties”), from and against any an d all claims, demands, causes of action, costs,
expenses, (including reasonable attorneys’ fees and court costs), liability, loss, damage or injury, in law or
equity, to property or persons, including wrongful death, in any manner arising out of or inciden t to any
alleged acts, omissions, negligence, or willful misconduct of Contractor/Service Provider, its officials,
officers, employees, agents, and contractors, arising out of or in connection with the performance of the
Required Services, the results of such performance, or this Agreement. This indemnity provision does not
include any claims, damages, liability, costs and expenses arising from the sole negligence or willful
misconduct of the Indemnified Parties. Also covered is liability arising from, con nected with, caused by or
claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which
may be in combination with the active or passive negligent acts or omissions of the Contractor/Service
Provider, its employees, agents or officers, or any third party.
4.2.Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the
forgoing, if the services provided under this Agreement are design professional services, as defined by
California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity
obligation under Section 1, above, shall be limited to the extent required by California Civil Code section
2782.8.
4.3 Costs of Defense and Award. Included in Contractor/Service Provider’s obligations under this
Section 4 is Contractor/Service Provider’s obligation to defend, at Contractor/Service Provider’s own cost,
expense and risk, any and all suits, actions or other legal proceedings that may be brought or instituted
against one or more of the Indemnified Parties. Subject to the limitations in this Section 4,
Contractor/Service Provider shall pay and satisfy any judgment, award or decree that may be rendered
against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred by
any of them.
4.4.Contractor/Service Provider’s Obligations Not Limited or Modified .Contractor/Service Provider’s
obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by the
Indemnified Parties, or by any prior or subsequent declaration by the Contractor/Service Provider.
Furthermore,Contractor/Service Provider’s obligations under this Section 4 shall in no way limit, modify or
excuse any of Contractor/Service Provider’s other obligations or duties under this Agreement.
4.5.Enforcement Costs.Contractor/Service Provider agrees to pay any and all costs City incurs in
enforcing Contractor/Service Provider’s obligations under this Section 4.
4.6 Survival.Contractor/Service Provider’s obligations under this Section 4 shall survive the termination
of this Agreement.
5.FINANCIAL INTERESTS OF CONTRACTOR/SERVICE PROVIDER.
5.1 Form 700 Filing.The California Political Reform Act and the Chula Vista Conflict of Interest Code
require certain government officials and Contractor/Service Providers performing work for government
agencies to publicly disclose certain of their personal assets and incom e using a Statement of Economic
Interests form (Form 700). In order to assure compliance with these requirements,Contractor/Service
2018-09-25 Agenda Packet Page 248
7 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
Provider shall comply with the disclosure requirements identified in the attached Exhibit C, incorporated
into the Agreement by this reference.
5.2 Disclosures; Prohibited Interests.Independent of whether Contractor/Service Provider is required to
file a Form 700,Contractor/Service Provider warrants and represents that it has disclosed to City any
economic interests held by Contractor/Service Provider, or its employees or subcontractors who will be
performing the Required Services, in any real property or project which is the subject of this Agreement.
Contractor/Service Provider warrants and represents that it has not em ployed or retained any company or
person, other than a bona fide employee or approved subcontractor working solely for Contractor/Service
Provider, to solicit or secure this Agreement. Further,Contractor/Service Provider warrants and represents
that it has not paid or agreed to pay any company or person, other than a bona fide employee or approved
subcontractor working solely for Contractor/Service Provider, any fee, commission, percentage, brokerage
fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement.
Contractor/Service Provider further warrants and represents that no officer or employee of City, has any
interest, whether contractual, non-contractual, financial or otherwise, in this transaction, the proceeds
hereof, or in the business of Contractor/Service Provider or Contractor/Service Provider’s subcontractors.
Contractor/Service Provider further agrees to notify City in the event any such interest is discovered
whether or not such interest is prohibited by law or this Agreement. For breach or violation of any of these
warranties, City shall have the right to rescind this Agreement without liability.
6.REMEDIES
6.1 Termination for Cause. If for any reason whatsoever Contractor/Service Provider shall fail to
perform the Required Services under this Agreement, in a proper or timely manner, or if Contractor/Service
Provider shall violate any of the other covenants, agreements or conditions of this Agreement (each a
“Default”), in addition to any and all other rights and remedies City may have under this Agreement, at law
or in equity, City shall have the right to terminate this Agreement by giving five (5) days written notice to
Contractor/Service Provider. Such notice shall identify the Default and the Agreement termination date. If
Contractor/Service Provider notifies City of its intent to cure such Default prior to City’s specified
termination date, and City agrees that the specified Default is capable of being cure d, City may grant
Contractor/Service Provider up to ten (10) additional days after the designated termination date to effectuate
such cure. In the event of a termination under this Section 6.1,Contractor/Service Provider shall
immediately provide City any and all ”Work Product” (defined in Section 7 below) prepared by
Contractor/Service Provider as part of the Required Services. Such Work Product shall be City’s sole and
exclusive property as provided in Section 7 hereof.Contractor/Service Provider may be entitled to
compensation for work satisfactorily performed prior to Contractor/Service Provider’s receipt of the Default
notice; provided, however, in no event shall such compensation exceed the amount that would have been
payable under this Agreement for such work, and any such compensation shall be reduced by any costs
incurred or projected to be incurred by City as a result of the Default.
6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement,
or any portion of the Required Services, at any time and for any reason, with or without cause, by giving
specific written notice to Contractor/Service Provider of such termination or suspension at least fifteen (15)
days prior to the effective date thereof. Upon receipt of such notice,Contractor/Service Provider shall
immediately cease all work under the Agreement and promptly deliver all “Work Product” (defined in
Section 7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in
Section 7 hereof.Contractor/Service Provider shall be entitled to receive just and equitable compensation
for this Work Product in an amount equal to the amount due and payable under this Agr eement for work
satisfactorily performed as of the date of the termination/suspension notice plus any additional remaining
2018-09-25 Agenda Packet Page 249
8 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
Required Services requested or approved by City in advance that would maximize City’s value under the
Agreement.
6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this
Section,Contractor/Service Provider hereby expressly waives any and all claims for damages or
compensation as a result of such termination except as expressly provided in this Section 6.
6.4 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising
out of this Agreement against City unless a claim has first been presented in writing and filed with City and
acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal
Code, as same may be amended, the provisions of which, including such policies and procedures used by
City in the implementation of same, are incorporated herein by this reference. Upon request by City,
Contractor/Service Provider shall meet and confer in good faith with City for the purpose of resolving any
dispute over the terms of this Agreement.
6.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the
laws of the State of California. Any action arising under or relating to this Agreement shall b e brought only
in San Diego County, State of California.
6.6 Service of Process.Contractor/Service Provider agrees that it is subject to personal jurisdiction in
California. If Contractor/Service Provider is a foreign corporation, limited liability com pany, or partnership
that is not registered with the California Secretary of State,Contractor/Service Provider irrevocably
consents to service of process on Contractor/Service Provider by first class mail directed to the individual
and address listed under “For Legal Notice,” in section 1.B. of Exhibit A to this Agreement, and that such
service shall be effective five days after mailing.
7.OWNERSHIP AND USE OF WORK PRODUCT
All reports, studies, information, data, statistics, forms, designs, plans, proc edures, systems and any other
materials or properties produced in whole or in part under this Agreement in connection with the
performance of the Required Services (collectively “Work Product”) shall be the sole and exclusive
property of City. No such Work Product shall be subject to private use, copyrights or patent rights by
Contractor/Service Provider in the United States or in any other country without the express, prior written
consent of City. City shall have unrestricted authority to publish, discl ose, distribute, and otherwise use,
copyright or patent, in whole or in part, any such Work Product, without requiring any permission of
Contractor/Service Provider, except as may be limited by the provisions of the Public Records Act or
expressly prohibited by other applicable laws. With respect to computer files containing data generated as
Work Product,Contractor/Service Provider shall make available to City, upon reasonable written request by
City, the necessary functional computer software and hardwa re for purposes of accessing, compiling,
transferring and printing computer files.
8.GENERAL PROVISIONS
8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties.
8.2 Assignment. City would not have entered into this Agreement but for Contractor/Service Provider’s
unique qualifications and traits.Contractor/Service Provider shall not assign any of its rights or
responsibilities under this Agreement, nor any part hereof, without City’s prior written consent, which City
may grant, condition or deny in its sole discretion.
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9 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
8.3 Authority. The person(s) executing this Agreement for Contractor/Service Provider warrants and
represents that they have the authority to execute same on behalf of Contractor/Service Provider and to bind
Contractor/Service Provider to its obligations hereunder without any further action or direction from
Contractor/Service Provider or any board, principle or officer thereof.
8.4 Counterparts.This Agreement may be executed in counterparts, each of which shall be deemed an
original, but all of which shall constitute one Agreement after each Party has signed such a counterpart.
8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements
expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject
matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein
by reference. All prior or contemporaneous agreements, understandings, representations, warranties and
statements, oral or written, are superseded.
8.6 Record Retention. During the course of the Agreement and for three (3) years following completion
of the Required Services,Contractor/Service Provider agrees to maintain, intact and readily accessible, all
data, documents, reports, records, contracts, and supporting materials relating to the per formance of the
Agreement, including accounting for costs and expenses charged to City, including such records in the
possession of sub-contractors/sub-Contractor/Service Providers.
8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such
additional documents and instruments as may be reasonably required in order to carry out the provisions of
this Agreement and the intentions of the Parties.
8.8 Independent Contractor.Contractor/Service Provider is and shall at all times remain as to City a
wholly independent contractor. Neither City nor any of its officers, employees, agents or volunteers shall
have control over the conduct of Contractor/Service Provider or any of Contractor/Service Provider’s
officers,employees, or agents (“Contractor/Service Provider Related Individuals”), except as set forth in
this Agreement. No Contractor/Service Provider Related Individuals shall be deemed employees of City,
and none of them shall be entitled to any benefits to which City employees are entitled, including but not
limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave
benefits. Furthermore, City will not withhold state or federal income tax, social security tax or an y other
payroll tax with respect to any Contractor/Service Provider Related Individuals; instead,Contractor/Service
Provider shall be solely responsible for the payment of same and shall hold the City harmless with respect to
same.Contractor/Service Provider shall not at any time or in any manner represent that it or any of its
Contractor/Service Provider Related Individuals are employees or agents of City.Contractor/Service
Provider shall not incur or have the power to incur any debt, obligation or lia bility whatsoever against City,
or bind City in any manner.
8.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this
Agreement must be in writing. All notices, demands and requests to be sent to any Party sha ll be deemed to
have been properly given or served if personally served or deposited in the United States mail, addressed to
such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified
in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or
otherwise provided in writing.
(End of page. Next page is signature page.)
2018-09-25 Agenda Packet Page 251
10 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
SIGNATURE PAGE
CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT
IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and
Contractor/Service Provider agree that they have read and understood all terms and conditions of the
Agreement, that they fully agree and consent to bound by same, and that the y are freely entering into this
Agreement as of the Effective Date.
SOUTH COAST MEDICAL CLINIC CITY OF CHULA VISTA
BY:________________________________BY: ________________________________
ALEX K. HAN, M.D.MARY CASILLAS SALAS
MEDICAL DIRECTOR MAYOR
ATTEST
BY: ________________________________
Kerry K. Bigelow, MMC
City Clerk
APPROVED AS TO FORM
BY: ________________________________
Glen R. Googins
City Attorney
2018-09-25 Agenda Packet Page 252
11 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
EXHIBIT A
SCOPE OF WORK AND PAYMENT TERMS
1.Contact People for Contract Administration and Legal Notice
A.City Contract Administration:
Chula Vista Police Department
Jonathan Alegre, Police Administrative Services Administrator
315 Fourth Avenue, Chula Vista, CA 91910
(619) 476-2570
jalegre@chulavistapd.org
For Legal Notice Copy to:
City of Chula Vista
City Attorney
276 Fourth Avenue, Chula Vista, CA 91910
619-691-5037
CityAttorney@chulavistaca.gov
B.Contractor/Service Provider Contract Administration:
SOUTH COAST MEDICAL CLINIC
Alex K. Han, M.D.
408 W. 8th Street, National City, CA 91950
(619) 474-8666
For Legal Notice Copy to:
South Coast Medical Clinic
Alexis Han, Operations Manager
408 W. 8th Street, National City, CA 91950
(619) 474-8666
alexis@southcoastmedicalclinic.com
2.Required Services
A.General Description:
Contractor shall provide medical services to city jail inmates.
B.Detailed Description:
At the request of the Police Department, and after the Police Department transports inmates to the South
Coast Medical Clinic facility,Contractor shall provide medical evaluations and/or write medical
prescriptions as necessary for City J ail inmates, in a manner similar to services provided to the general
public. South Coast Medical Clinic’s Dr. Alex K. Han (or other primary physician repre senting South Coast
Medical Clinic) agrees to assume the role of the Police Department’s Jail Facility “responsible p hysician.”
The general duties of the responsible physician are outlined in the California Board of State and Community
Corrections (BSCC) Title 15 Minimum Standards For Local Detention Facilities.
2018-09-25 Agenda Packet Page 253
12 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
The responsible physician shall, in cooperation with the Jail Commander, set forth in writing,policies and
health care procedures for inmates in conformance with applicable state and federal law, which are reviewed
and updated at least every two years.
The responsible physician, in conjunction with the City Jail Commander and the County health officer, shall
develop a written plan to address the identification, treatment, control and follow-up management of
tuberculosis and other communicable diseases. The plan shall cover the intake screening procedures,
identification of relevant symptoms, referral for a medical evaluation, treatment responsibilities during
incarceration and coordination with public health officials for follow-up treatment in the community. The
plan shall reflect the current local incidence of communicable diseases which threaten the health of inmates
and staff.
The responsible physician, in cooperation with the Jail Commander, shall develop a written plan for identifying
and/or referring any inmate who appears to be in need of medical,mental health or developmental disability
treatment at any time during his/her incarceration subsequent to the receiving screening. The written plan
shall also include the assessment and treatment of inmates and shall be performed by either licensed health
personnel or by persons operating under the authority and/or direction of licensed health personnel.
For inmates undergoing prolonged incarceration, an age-appropriate and risk-factor based health maintenance
visit shall take place within the inmate's second anniversary of incarceration. The specific components of the
health maintenance examinations shall be determined by the responsible physician based on the age, gender,
and health of the inmate. Thereafter, the health maintenance examinations shall be repeated at reasonable
intervals as determined by the responsible physician.
For each inmate treated for health conditions for which additional treatment, special accommodations and/or a
schedule of follow-up care is/are needed during the period of incarceration, responsible physician shall
develop a written treatment plan. The City Jail staff shall be informed of the treatment plan when necessary,
to ensure coordination and cooperation in the ongoing care of the inmate. This treatment plan shall include
referral to treatment after release from the facility when recommended by treatment staff.
There shall be written policies and procedures developed by the Jail Commander, in cooperation with the
responsible physician, which provides for a daily sick call conducted for all inmates or provision made that
any inmate requesting medical/mental health attention be given such attention.
The responsible physician shall develop written medical policies on detoxification which shall include a
statement as to whether detoxification will be provided within the facility or require transfer to a licensed
medical facility. The facility detoxification protocol shall include procedures and symptoms necessitating
immediate transfer to a hospital or other medical facility.
First aid kit(s) shall be available in the City Jail Facilit y. The responsible physician shall approve the contents,
number, location and procedure for periodic inspection of the kit(s).
The responsible physician shall communicate/coordinate with the Police Department’s Jail Facility Health
Authority (Registered Nurse) in providing general medical services to the inmates on a routine basis.
The responsible physician shall maintain individual, complete and dated health records for inmates assessed and
treated,in compliance with state statute.The responsible physician shall ensure the confidentiality of each
inmate's health care record file (paper or electronic) and such files shall be maintained separately from and in
no way be part of the inmate's other jail records.
2018-09-25 Agenda Packet Page 254
13 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
3.Term:In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin
November 1, 2018 and end on October 31, 2019 for completion of all Required Services.
4.Compensation:
A.Form of Compensation
☒Time and Materials. For performance of the Required Services by Contractor/Service Provider as identified
in Section 2.B., above, City shall pay Contractor/Service Provider for the productive hours of time spent by
Contractor/Service Provider in the performance of the Required Services, at the rates or amounts as indicated
below:
Initial inmate visit:$80.00 per visit
Follow-up visits:$40.00 per visit
General laboratory fees:$25.00 to $40.00 per inmate per visit
Phone consultations:not to exceed $10.00 per consultation
B.Reimbursement of Costs
☒The City may also compensate the Consultant for other incidental costs incurred while providing basic
medical needs of the patient for a pre-approved and mutually agreed fee.
Notwithstanding the foregoing, the maximum amount to be paid to the Contractor/Service Provider for services
performed through October 31, 2019 shall not exceed $25,000.
5.Special Provisions:
Permitted Sub-Contractor/Service Providers: None.
Security for Performance: None.
☒Notwithstanding the completion date set forth in Section 3 above, City has option to extend this Agreement
for four (4)additional terms, defined as a one-year increment or every November 1 through October 31,
2023.The City Manager or Director of Finance/Treasurer shall be authorized to exercise the extensions on
behalf of the City. If the City exercises an option to extend, each extension shall be on the same terms and
conditions contained herein, provided that t he amounts specified in Section 4 above may be increased by up to
the current San Diego Consumer Price Index (CPI), not to exceed 5%,for each extension. The City shall give
written notice to Contractor/Service Provider of the City’s election to exercise the extension via the Notice of
Exercise of Option to Extend document. Such notice shall be provided at least 30 days prior to the expiration of
the term.
2018-09-25 Agenda Packet Page 255
14 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
EXHIBIT B
INSURANCE REQUIREMENTS
Contractor/Service Provider shall adhere to all terms and conditions of Section 3 of the Agreement and agrees
to provide the following types and minimum amounts of insurance, as indicated by checking the applicable
boxes (x).
Type of Insurance Minimum Amount Form
☒General Liability:
Including products and
completed operations,
personal and
advertising injury
$2,000,000 per occurrence for
bodily injury, personal injury
(including death), and property
damage. If Commercial General
Liability insurance with a general
aggregate limit is used, either the
general aggregate limit must apply
separately to this Agreement or the
general aggregate limit must be
twice the required occurrence limit
Additional Insured Endorsement
or Blanket AI Endorsement for
City*
Waiver of Recovery Endorsement
Insurance Services Office Form
CG 00 01
*Must be primary and must not
exclude Products/Completed
Operations
☒Automobile Liability $1,000,000 per accident for bodily
injury, including death, and
property damage
Insurance Services Office Form
CA 00 01
Code 1-Any Auto
Code 8-Hired
Code 9-Non Owned
☒Workers’
Compensation
Employer’s Liability
$1,000,000 each accident
$1,000,000 disease policy limit
$1,000,000 disease each employee
Waiver of Recovery Endorsement
Other Negotiated Insurance Terms: NONE.
2018-09-25 Agenda Packet Page 256
15 City of Chula Vista Agreement No.: 18087
Consultant Name:South Coast Medical Clinic Rev.10/24/17
EXHIBIT C
CONTRACTOR/SERVICE PROVIDER CONFLICT OF INTEREST DESIGNATION
The Political Reform Act1 and the Chula Vista Conflict of Interest Code2 (“Code”) require designated state and
local government officials, including some Contractor/Service Providers, to make certain public disclosures
using a Statement of Economic Interests form (Form 700).Once filed, a Form 700 is a public document,
accessible to any member of the public. In addition,Contractor/Service Providers designated to file the Form
700 are also required to comply with certain ethics training requirements.3
☒A.Contractor/Service Provider IS a corporation or limited liability company and is therefore EXCLUDED 4
from disclosure.
B.Contractor/Service Provider is NOT a corporation or limited liability company and disclosure
designation is as follows:
APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES
(Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.)
Name Email Address Applicable Designation
A. Full Disclosure
B. Limited Disclosure (select one or more of
the categories under which the Contractor shall file):
1.2.3.4.5.6.7.
Justification:
☒C. Excluded from Disclosure
1.Required Filers
Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition
of “Contractor/Service Provider,” pursuant to FPPC Regulation 18700.3, must file a Form 700.
2.Required Filing Deadlines
Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's
online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be
required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the
Agreement.
3. Filing Designation
The City Department Director will designate each individual who will be providing services to the City pursuant to
the Agreement as full disclosure, limited disclosure,or excluded from disclosure, based on an analysis of the services
the Contractor/Service Provider will provide. Notwithstanding this designation or anything in the Agreement, the
Contractor/Service Provider is ultimately responsible for complying with FPPC regulations and filing requirements. If
you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691 -
5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2.
Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written
determination of the Contractor’s requirement to comply with the disclosure requirements set forth in the Code.
Completed by:Jonathan Alegre
1 Cal.Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704.
2 Chula Vista Municipal Code §§2.02.010-2.02.040.
3 Cal. Gov. Code §§53234,et seq.
4 CA FPPC Adv. A-15-147 (Chadwick) (2015);Davis v. Fresno Unified School District (2015) 237 Cal.App.4th 261; FPPC Reg.
18700.3 (Consultant defined as an “individual” who p articipates in making a governmental decision; “individual” does not include
corporation or limited liability company).
2018-09-25 Agenda Packet Page 257
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September 25, 2018 File ID: 18-0420
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $62,815 FROM THE U.S.
DEPARTMENT OF HOMELAND SECURITY AND APPROPRIATING SAID FUNDS TO THE POLICE GRANTS
SECTION OF THE FEDERAL GRANTS FUND FOR THE URBAN AREA SECURITY INITIATIVE (4/5 VOTE
REQUIRED)
RECOMMENDED ACTION
Council adopt the resolution.
SUMMARY
The San Diego Office of Homeland Security, which administers the Urban Area Security Initiative (UASI),
has notified the City of Chula Vista of fiscal year 2017 UASI funding. The Urban Area Security Initiative
addresses the unique planning, organization, equipment, training, and exercise needs of high-threat, high-
density urban areas. This funding will be used to purchase equipment for the Special Weapons & Tactics
(SWAT) & Patrol teams.
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.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not Applicable
DISCUSSION
One of the core missions of the U.S. Department of Homeland Security is to enhance the ability of state,
territory, local, and tribal governments to prevent, protect against, mitigate, respond to, and recover from
acts of terrorism and other disasters. As first responders to emergency incidents, the Police, Fire and
Public Works Departments have benefited greatly from several Federal Homeland Security Grants. The
fiscal year 2017 Urban Area Security Initiative (FY2017 UASI) provides funding for the continued
development of readiness and operational response capacity of Police and Fire first responder personnel.
UASI grant administrators from the California Governor’s Office of Emergency Services (Cal OES) have
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approved the expenditure plan for equipment, planning and training needs of the City. The spending plan
was submitted in advance of funding approval in accordance with grant requirements. Grant funds are
restricted as to how they can be spent and cannot supplant normal budgetary items for the City. The
specific spending plan for these funds is as follows:
Avatar Robot Arm Accessory, Shields, and Beacons
The Police Department’s SWAT Team currently owns an AVATAR robot. This robot enhances the
capabilities of SWAT and tactical response teams by allowing them to quickly and safely inspect dangerous
situations, without the need to send personnel in before the situation is assessed. The AVATAR robot arm
is an attachment that fits directly onto the robot. The AVATAR arm is a five-axis robotic arm, fitted with
built-in camera that is easily mounted on the robot. With this new accessory, the team will be able to open
doors, drop off items and deploy less than lethal munitions during critical incidents.
The infrared beacons and ballistic shields will also be used by the SWAT Team. The beacons are used for
night time training and critical incidents. The new ballistic shields incorporate the latest materials,
technology and lightweight design, providing multi-hit capability from bullets, both items ensuring officer
safety.
Regional Crowd Control Equipment
The Police Department will also use these funds to purchase 55 riot gear equipment. This equipment will
be placed inside marked patrol vehicles to be readily accessible during critical incidents. The equipment
includes protective padding, gas masks, hydration pack, shin guards and gloves.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific
and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11),
is not applicable to this decision for purposes of determining a disqualifying real property-related financial
conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact
that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy
Community, Strong and Secure Neighborhoods and a Connected Community. This resolution supports the
goal of Strong and Secure Neighborhoods by enhancing the readiness and operations response capacity of
emergency first responder personnel.
CURRENT-YEAR FISCAL IMPACT
Approval of this resolution will result in a one-time appropriation of $34,673 to the supplies & services
category and $28,142 to the capital category of the Police Grants Section of the Federal Grants Fund. The
funding from the U.S. Department of Homeland Security will completely offset these costs. Therefore, there
is no net fiscal impact to the City.
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ONGOING FISCAL IMPACT
There is no ongoing fiscal impact for accepting these grant funds.
ATTACHMENTS
None
Staff Contact: Maritza Vargas, Police Department
2018-09-25 Agenda Packet Page 260
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING $62,815 FROM THE U.S.
DEPARTMENT OF HOMELAND SECURITY AND
APPROPRIATING SAID FUNDS TO THE POLICE GRANTS
SECTION OF THE FEDERAL GRANTS FUND FOR THE
URBAN AREA SECURITY INITIATIVE
WHEREAS, the San Diego Office of Homeland Security, which administers the Urban
Area Security Initiative (UASI), has notified the City of fiscal year 2017 UASI funding; and
WHEREAS, the Urban Area Security Initiative addresses the unique planning,
organization, equipment, training, and exercise needs of high-threat, high-density urban areas;
and
WHEREAS, grant funds from the Urban Area Security Initiative are restricted in how
they can be spent and cannot supplant normal budgetary items for the City; and
WHEREAS, the fiscal year 2017 UASI funds will purchase equipment for the Police
Department’s Special Weapons & Tactics and Patrol Teams.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it accepts $62,815 from the U.S. Department of Homeland Security and appropriates
said funds to the Federal Grants Fund for the Urban Area Security Initiative, as follows: $34,673
to the supplies and services category and $28,142 to the capital category.
Presented by Approved as to form by
Roxana Kennedy Glen R. Googins
Police Chief City Attorney
2018-09-25 Agenda Packet Page 261
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September 25, 2018 File ID: 18-0376
TITLE
ORDINANCE OF THE CITY OF CHULA VISTA CONSOLIDATING THE EASTERN TRANSPORTATION
DEVELOPMENT IMPACT FEE, WESTERN TRANSPORTATION DEVELOPMENT IMPACT FEE, AND BAYFRONT
DEVELOPMENT IMPACT FEE CHAPTERS OF THE CHULA VISTA MUNICIPAL CODE BY REPEALING AND
REPLACING CHAPTER 3.54 (TRANSPORTATION DEVELOPMENT IMPACT FEE) AND REPEALING CHAPTER
3.55 (WESTERN AND BAYFRONT TRANSPORTATION DEVELOPMENT IMPACT FEES) (FIRST READING)
RECOMMENDED ACTION
Council conduct the public hearing and place the ordinance on first reading.
SUMMARY
The City of Chula Vista assesses three geographically based transportation development impact fees (TDIFs):
an Eastern Transportation Development Impact Fee (ETDIF), a Western Transportation Development
Impact Fee (WTDIF) and a Bayfront Development Impact Fee (BFDIF) (see Attachment 1 for the location of
the three TDIF areas). The ETDIF is codified in Chapter 3.54 of the Chula Vista Municipal Code (CVMC), while
the WTDIF and BFDIF are codified in Chapter 3.55. Consolidation of all three transportation DIFs into a single
chapter of the CVMC is recommended in order to ensure consistency between programs and to simplify
ordinance administration. The proposed consolidated ordinance also reflects minor modifications to
improve readability; clarify application and administration of the fee programs; and updated fee waiver,
reduction, and deferral provisions. No change to the ETDIF, WTDIF, or BFDIF fee is recommended in
conjunction with this action.
ENVIRONMENTAL REVIEW
The City’s 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 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.
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DISCUSSION
The ETDIF was originally adopted by the City Council in January of 1988, via Ordinance 2251. The ETDIF
was established as a mechanism for new development within the eastern area of the City (generally located
east of I-805) to mitigate project impacts on transportation facilities. Since its inception in 1988, the ETDIF
program has been updated several times to reflect new land use approvals, changes to the City’s General
Plan, updated cost estimates, and updated administrative regulations. The ETDIF was last updated in 2014,
and the current version of the ordinance is codified in Chapter 3.54 of the CVMC (see Attachment 2).
In March of 2008, the City Council adopted Ordinance 3106, establishing a WTDIFand creating Chapter 3.55
of the CVMC. At that time, the WTDIF generally applied to all development occurring west of the I-805. The
WTDIF was amended in 2014 via Ordinance 3327 to reduce the applicability of the WTDIF to only those
areas generally located between I-5 and I-805 and to create a separate BFDIF applicable to the Chula Vista
Bayfront Master Plan Area (generally those areas west of I-5). Both the WTDIF and the BFDIF are codified
in Chapter 3.55 of the CVMC (see Attachment 3).
Consolidation of the three existing transportation TDIFs into a single chapter of the CVMC is recommended
to ensure consistency between the three TDIF programs (when appropriate) and to simplify ordinance
administration. In order to consolidate the TDIFs into a single chapter of the CVMC, the repeal and
replacement of Chapter 3.54 is recommended, along with the repeal of Chapter 3.55. This action does not
increase the ETDIF, WTDIF, or BFDIF fee. The proposed replacement Chapter 3.54 is provided as Attachment
4 to this report.
While the majority of the changes proposed to Chapter 3.54 result from the consolidation of the three
transportation TDIF programs, additional updates are also recommended to clarify applicability of the
ordinance, streamline administration, and improve readability. In preparing the proposed replacement
Chapter 3.54, staff reviewed all other City development impact fee (DIF) ordinances, as codified, as well as
published ordinances of other jurisdictions to determine DIF ordinance best practices. A number of updates
are recommended based upon this review. For example, Chapters 3.54 and 3.55 currently include a list of all
eligible transportation facilities for each program from inception. This information is not required in the
ordinances and can instead beincorporated via reference to the applicable nexus studies or other published
documents. As a result, the elimination of the transportation facility listfrom Chapter 3.54 is recommended.
Similarly, both chapters currently list calculated fees for certain potential land uses. This is not a
comprehensive list, and the land uses assumed are not consistent between the two chapters. For all three
fee programs, fees per Equivalent Dwelling Unit (EDU) and average daily trip (ADT) drive the ultimate fee
calculation in each nexus study (1 EDU = 10 ADTs). In order to simplify and clarify applicability of the
ordinance, removal of the fees by land use from the CVMC is recommended. Instead, the new CVMC Chapter
3.54 will list only the fee per ADTfor each TDIF program and explicitly allow for the determination of project
fees using published traffic generation rates, traffic generation studies, traffic count data, traffic impact
studies, other relevant data and analysis, and/or engineering judgement(see Section 3.54.060). This change
will reduce confusion in administration of the TDIFs and ensure that the most appropriate fees are charged
for each project, supporting reasonable and proportionateproject mitigationof transportation impacts. This
approach is consistent with the City’s historic practice in assessing impact fees and also streamlines the
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existing fee modification and reduction process (see discussion to follow). Schedules of fees for various
common land uses will be developed and published administratively for ease of reference. Applicability of
the ETDIF, WTDIF, and BFDIF to Accessory Dwelling Units, as defined in CVMC 19.58.022, is also clarified in
the new ordinance (see Section 3.54.020(G)).
Updates to the fee waiver, reduction, and deferral provisions are recommended in order to simplify the
subject process and to broaden the City Council’s deferral authority. The existing TDIF ordinances provide
for fee waivers, reductions, or deferrals in the following circumstances:
ETDIF, WTDIF, & BFDIF Ordinances
If a Developer contends that the fee assessed to their project is unconstitutional or unrelated to
mitigation of the impacts of their project, they may apply to the City Council for a modification or
reduction of the fee.
Developments designated and intended as a temporary use (10 years or less) may apply to the City
Council for a waiver or reduction.
Deferrals may be granted by the City Council based on economic hardship, if the use offers a
significant public benefit, market rate interest is charged, and the deferred amount is adequately
secured by agreement with the applicant.
The above applications to the City Council for modification, reduction, or deferral of the fee must be
made in writing and filed with the City Clerk no later than ten (10) days after notice of the public
hearing on the development project, or, if no public hearing is required, no later than ten (10) days
from building permit application. The City Council must then hold a public hearing to consider the
application. If granted, an agreement must be entered into between the City and the applicant or
property owner.
ETDIF Ordinance Only
Developers of golf courses that contend that the ETDIF is unrelated to mitigation of their project may
apply to the City Council for a reduction in fees based on the nature of the proposed golf course. An
interim reduction may be granted based upon a preliminary traffic study that supports the
developer’s contention. The final fee determination is basedon a traffic study to be conducted within
the fourth year of operation of the fully developed golf course, to be paid for by the developer and
submitted for approval by the City’s Public Works Director. If the developer fails to submit the traffic
study and receive the City’s approval, the entire fee imposed by Chapter 3.54 becomes immediately
due and payable. If a reduction is permitted, the City Council may allow the developer to pay the
impact fee over a 10-year period.
Staff recommends the following provisions be included in the new consolidated TDIF chapter, to be applied
to the ETDIF, WTDIF, and BFDIF (see Section 3.54.160):
If a Developer contends that the fee assessed to their project is unconstitutional or unrelated to
mitigation of the impacts of their project, they may apply to the City Manager for a modification or
reduction of the fee. The City Manager shall make a determination within ten (10) business days of
the developer’s application for modification or reduction. The developer may appeal the City
Manager’s decisionto the City Council.
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Developments designated and intended as a temporary use (10 years or less) may be granted a fee
waiver, as determined by the City Manager, or designee. The developer may appeal the City
Manager’s decision to the City Council.
Appeals shall be filed with the City Clerk within ten (10) business days of the City Manager’s decision.
The City Council should consider the appeal within 60 days after its filing and the decision of the City
Council will be final.
Deferrals may be granted by the City Manager or designee based on economic hardship, if market
rate interest is charged, and the deferred amount is adequately secured by agreement with the
applicant.
Deferrals may be granted by the City Manager or designee if a project provides a significant public
benefit, market rate interest is charged, and the deferred amount is adequately secured by agreement
with the applicant.
Elimination of the special golf course reduction and deferral provision (ETDIF only).
Creation of a new provision that would apply only to hotels/motels that do not receive any other
form of economic subsidy from the City. These projects would be allowed to apply for a deferral
and/or reduction in their TDIFs (ETDIF, WTDIF, or BFDIF). If approved, a deferral could be granted
for a period of up to four (4) years from the Certificate of Occupancy for the project. The deferral
would require an agreement between the City and the developer, to include an acceptable security
instrument. The final determination of fees for the project would be based on a traffic study to be
paid for by the developer and submitted for approval by the Director of Development Services. If the
developer fails to submit the traffic study and obtain City approval, the entire fee imposed would be
immediately due and payable. The outstanding balance would also become due and payable if the
developer transfers the property to any other party without the reasonable advance approval of the
City and the acceptance of the other party of the obligation.
Additional recommended updates include inserting references to the City’s newly adopted procurement
guidelines for developer constructed public works (CVMC 2.56.160(H)) and the City’s Interfund Loan Policy
(City Council Policy 220-06). Updates to allow for interfund loans outside the annual budget adoption
process are also recommended(see CVMC 3.54.190(A)).
The previously authorized annual inflationary updates to the ETDIF, WTDIF, and BFDIF are preserved (see
CVMC 3.54.090). The next such increase will be effective October 1, 2018.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and
consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11), is not
applicable to this decision for purposes of determining a disqualifying real property-related financial conflict
of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact
that may constitute a basis for a decision maker conflict of interest in this matter.
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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. Consolidating the Eastern Transportation
Development Impact Fee, Western Transportation Development Impact Fee, and Bayfront Development
Impact Fee into a single Transportation Development Impact Fee chapter of the Chula Vista Municipal Code
supports the Operational Excellence goal by enhancing consistency between transportation DIF programs
and simplifying ordinance administration. Streamlining and simplifying the transportation DIF reduction,
waiver, and deferral processes supports the Economic Vitality goal as it seeks to lower economic barriers to
new growth, while ensuring projects continue to mitigate their transportation impacts.
CURRENT-YEAR FISCAL IMPACT
All costs associated with the preparation of this report are borne by the transportation development impact
fee programs, resulting in no net impact to the General Fund or the Development Services Fund.
ONGOING FISCAL IMPACT
The proposed ordinance consolidatesthe City’s three transportation development impact fee programs into
a single chapter of the Chula Vista Municipal Code with no change to the rates. No impacts to fee program
revenues are anticipated as a result of this action.
Streamlining and simplifying the fee reduction, waiver, and deferral process and creating a new process for
deferral and reduction of fees for uses that generate a significant public benefit, including hotels/motels,
supports development of economically desirable uses while ensuring the City continues to collect
appropriate fees to mitigate the impacts of these facilities. If adopted, these new provisions are anticipated
to incentivize the development of projects that generate positive fiscal impacts to the City’s General Fund.
ATTACHMENTS
1. TDIF Boundaries
2.Existing CVMC Chapter 3.54 (Transportation Development Impact Fee)
3. Existing CVMC Chapter 3.55 (Western and Bayfront Transportation Development Impact Fees)
4. Proposed Replacement CVMC Chapter 3.54 (Transportation Development Impact Fees)
Staff Contact: Tiffany Allen, Assistant Director of Development Services & Scott Barker, Transportation Engineer
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C:\Users\legistar\AppData\Local\Temp\BCL Technologies\easyPDF 8\@BCL@AC0DD3C9\@BCL@AC0DD3C9.docx
ORDINANCE NO.
ORDINANCE OF THE CITY OF CHULA VISTA
CONSOLIDATING THE EASTERN TRANSPORTATION
DEVELOPMENT IMPACT FEE, WESTERN
TRANSPORTATION DEVELOPMENT IMPACT FEE, AND
BAYFRONT DEVELOPMENT IMPACT FEE CHAPTERS OF
THE CHULA VISTA MUNICIPAL CODE BY REPEALING
AND REPLACING CHAPTER 3.54 (TRANSPORTATION
DEVELOPMENT IMPACT FEE) AND REPEALING CHAPTER
3.55 (WESTERN AND BAYFRONT TRANSPORTATION
DEVELOPMENT IMPACT FEES)
WHEREAS, the City of Chula Vista currently assesses three geographically based
Transportation Development Impact Fee (TDIF) programs, the Eastern TDIF (ETDIF), the
Western TDIF (WTDIF), and the Bayfront TDIF (BFDIF); and
WHEREAS, the boundaries of the three geographically based TDIF programs are
presented in Exhibit 1, attached hereto and incorporated by reference; and
WHEREAS, in January 1988, the ETDIF was established as a development impact fee to
fund transportation facilities in the City’s Eastern Territories via adoption of Ordinance No. 2251;
and
WHEREAS, pursuant to Ordinance No. 2251 the City has commenced the collection of
development impact fees to be used to construct transportation facilities to accommodate increased
traffic generated by new development within the City's Eastern Territories; and
WHEREAS, Ordinance No. 2251 as amended by Ordinance Nos. 2289, 2348, 2349, 2431,
2580, 2604, and 2671 were repealed by Ordinance No. 2802 in January 1999; and
WHEREAS, by Ordinance No. 2802, the ETDIF was placed in Municipal Code Chapter
3.54; and
WHEREAS, by Ordinance Nos. 3029 and 3328, the ETDIF program was updated to
include new costs and facilities; and
WHEREAS, on March 18, 2008, the WTDIF was established as a development impact fee
to fund transportation facilities in the City’s Western Territories via adoption of Ordinance Nos.
3106 through 3110, as codified in Chapter 3.55 of the Municipal Code; and
WHEREAS, in addition to preparing the City for future growth in the western portion of
the City, the San Diego Association of Governments (SANDAG) required San Diego County cities
to enact a Citywide TDIF program in order to continue receiving annual TransNet funds for local
streets; and
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WHEREAS, starting on July 1, 2008, each agency in the San Diego region was required to
contribute $2,000 in exactions (updated annually) from the private sector per Equivalent Dwelling
Unit (EDU) to improve the Regional Arterial System (RAS); and
WHEREAS, on January 31, 2015, the WTDIF was amended to remove the Bayfront Area
from the fee program and the BFDIF was established as a separate fee program to fund
transportation facilities in the City’s Bayfront Area via adoption of Ordinance No. 3328; and
WHEREAS, in order to ensure consistency between the ETDIF, WTDIF, and BFDIF
programs and to simplify ordinanceadministration, the consolidation of all three fee programs into
a single chapter of the Chula Vista Municipal Code (CVMC) is recommended (Chapter 3.54); and
WHEREAS, the proposed consolidated Transportation Development Impact Fee Chapter
3.54 includes additional language to clarify application of the existing code, to streamline
administration, and to improve readability; and
WHEREAS, updates to simplify the fee modification, waiver, and deferral process,
including granting additional authority to the City Council to approve fee deferrals for projects
which provide significant public benefit are also recommended; and
WHEREAS, the City recognizes the positive economic benefits of hotel/motel land uses
and that such uses may not achieve stabilized operations until several years after construction is
complete; and
WHEREAS, the City Council therefore desires to allow for deferral of ETDIF, WTDIF,
and BFDIF fees for up to four years from Certificate of Occupancy for hotel/motel uses that do
not receive any other economic subsidy from the City, with the ultimate fee determination to be
based upon a traffic study of actual trip generation; and
WHEREAS, this action does not increase or decrease the ETDIF, WTDIF, or BFDIF rates
currently in effect; and
WHEREAS, the following findings are intended to establish a nexus between the impact
of future development and the use of the fees collected; and
WHEREAS, the City’s General Plan indicates the increased population will contribute to
increased traffic volumes; and
WHEREAS, engineering studies show the transportation network will be adversely
impacted by new development within the City’s Eastern Territories, Western Area, and Bayfront
Area; and
WHEREAS, engineering studies and the City’s General Plan establish that the
transportation facilities necessitated by development in the City’s Eastern Territories, Western
Area, and Bayfront Area comprise integrated networks; and
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WHEREAS, on September 25, 2018, the City Council of the City of Chula Vista did
conduct a duly-noticed public hearing for consideration of a revision to the TDIF program; and
WHEREAS, the City’s 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 of the State CEQA Guidelines;
therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject
to CEQA.
NOW THEREFORE, the City Council of the City of Chula Vista does hereby ordain as
follows:
Section I. Substantive Action
Chapter 3.54 of the Chula Vista Municipal Code is hereby repealed and replaced in its entirety.
Chapter 3.55 of the Chula Vista Municipal Code is hereby repealed. New Chula Vista Municipal
Code Chapter 3.54 shall read as follows:
Chapter 3.54
TRANSPORTATION DEVELOPMENT IMPACT FEES
Sections:
3.54.010 General intent.
3.54.020 Definitions.
3.54.030 Transportation facilities to be financed by the fees.
3.54.040 Areas to which fees are applicable.
3.54.050 Establishment of fees.
3.54.060 Determination of fees by land use category.
3.54.070 Time to determine fee amount due.
3.54.080 Purpose and use of fees.
3.54.090 Amount of fees.
3.54.100 Development projects exempt from fees.
3.54.110 Authority for accounting and expenditures.
3.54.120 Findings.
3.54.130 Fees additional to other fees and charges.
3.54.140 Developer construction of transportation facilities.
3.54.145 Mandatory oversizing of facility – Duty to tender reimbursement offer.
3.54.150 Procedure for issuance of credits or tender of reimbursement offer.
3.54.155 Developer transfer of credits.
3.54.160 Procedure for fee modification or reduction.
3.54.170 Assessment and special tax districts.
3.54.180 Economic incentive credit.
3.54.190 Fund loans.
3.54.200 Effective date.
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3.54.010 General intent.
The City’s General Plan Land Use and Transportation element requires that adequate
Transportation Facilities be available to accommodate increased population created by new
development within the City of Chula Vista.
The City Council of the City of Chula Vista has determined that new development will create
adverse impacts on the City’s existing public facilities, which must be mitigated by the financing
and construction of certain Transportation Facilities that are the subject of this chapter. New
development contributes to the cumulative burden on Transportation Facilities in direct
relationship to the demand for service generated by the development.
The City Council of the City of Chula Vista has determined that a reasonable means of financing
the impacted Transportation Facilities is to charge a Fee on all developments located within the
following subareas of the City of Chula Vista: the Eastern Area, the Western Area, and the
Bayfront Area. Imposition of the transportation development impact fees on all new development
for which building permits have not yet been issued is necessary in order to protect the public
safety and welfare, thereby ensuring effective implementation of the City’s General Plan.
3.54.020 Definitions.
For the purposes of this chapter, the following words or phrases shall be construed as defined in
this section, unless from the context it appears that a different meaning is intended:
A.“Accessory Dwelling Unit” means a dwelling unit as defined in CVMC 19.58.022.
B. “Bayfront Area” generally means that area of the City of Chula Vista generally west of
Interstate 5 and between E Street and Naples Street as shown on the map entitled “Attachment
1” of the Council agenda statement for the ordinance codified in this chapter, on file in the
office of the City Clerk.
C. “BFDIF” means the Bayfront Transportation Development Impact Fee.
D. “Building Permit” means a permit required by and issued pursuant to the Uniform Building
Code, as adopted by reference by this City.
E. “Developer” means the owner or developer of a Development Project.
F. “Development Permit” means any discretionary permit, entitlement or approval for a
Development Project issued under any zoning or subdivision ordinance of the City.
G. “Development Project” or “Development” means any activity described as the following:
1. Any new residential dwelling unit, including any accessory dwelling unit, developed
on vacant land;
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2. Any new residential dwelling unit, including any accessory dwelling unit, developed
on nonvacant land, if the result is a net increase in demand for service. The fees shall
be based solely on the net increase in service demand;
3. Any physical conversion of an existing residential structure to create an accessory
dwelling unit, for which a Building Permit has been issued after September 25, 2018;
4. Any new non-residential Development constructed on vacant land;
5. Any expansion or intensification of non-residential Developments on nonvacant land,
if the result is a net increase in demand for service. The fees shall be based solely on
the net increase in service demand.
H. “Eastern Area” generally means that area of the City of Chula Vista located between Interstate
805 on the west, the city sphere of influence boundary on the east and northeast, the city
boundary on the north and the city’s southern boundary on the south as shown on the map
entitled “Attachment 1” of the Council agenda statement for the ordinance codified in this
chapter, on file in the office of the City Clerk.
I. “Engineer’s Reports” mean the “Interim Eastern Area Development Impact Fee for Streets”
study prepared by George T. Simpson and Willdan Associates dated November 1987; the
“Eastern Area Development Fee for Streets” study prepared by Willdan Associates dated
November 19, 1990; the “Eastern Development Impact Fee for Streets – 1993 Revision” study
prepared by City staff dated July 13, 1993; the study prepared by Project Design Consultants
(“Eastern Area Development Impact Fees for Streets, 1999 Update”) dated October 25, 1999;
the study prepared by Willdan (“Eastern Area Development Impact Fees for Streets” dated
July 2002); the study prepared by City staff (“Eastern Area Transportation Development
Impact Fees” dated March 2005); and the study prepared by City staff (“Eastern Area
Development Impact Fees” dated September 2014), which are on file in the office of the City
Clerk. “Engineer’s Report’s” also mean the Engineer’s Report for the Western Transportation
Development Impact Fee prepared by City staff, dated February 2008; and the “Western
Transportation Development Impact Fee Nexus Study Update” dated October 2014, and the
“Bayfront Transportation Development Impact Fee Nexus Study” dated October 2014, both
prepared by City staff on file in the office of the City Clerk.
J. “ETDIF” means the Eastern Transportation Development Impact Fee.
K. “Fees” means the Transportation Development Impact Fees established pursuant to CVMC
3.54.050 and assessed in accordance with the Mitigation Fee Act (Government Code §§66000-
66025), as described in relevant Engineer’s Reports on all Development Projects located within
the Eastern Area, the Western Area, and the Bayfront Area.
L. “Fee Credit” means credits that Developers may receive for costs they incur designing and
constructing the Transportation Facilities in accordance with CVMC 3.54.150.
M. “Nonprofit Community Purpose Facility” means a facility that is not operated for profit and
that serves one of the following purposes:
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1. Social and human service activities, including such services as Boy Scouts and Girl
Scouts, Boys and Girls Club, Alcoholics Anonymous and services for the homeless;
2. Public schools (primary and secondary only);
3. Private schools (primary and secondary only);
4. Day care;
5. Senior care and recreation;
6. Worship, spiritual growth, and development.
N. “Published traffic generation rates” means rates used to calculate traffic generation that are
prepared and disseminated by local agencies, regional entities (such as Metropolitan Planning
Organizations), and professional societies with expertise in the development of traffic
generation rates.
O. “TDIF” means Transportation Development Impact Fee.
P. “Transportation Facility” means the project or portion of a project which involves the specified
improvements authorized by CVMC 3.54.030.
Q. “Western Area” generally means that area of the City of Chula Vista located between Interstate
5 on the west, Interstate 805 on the east, the city boundary on the north and the City boundary
on the south, also including the area to the north of E Street, south of Naples Street and to the
west of Interstate 5, as shown on the map entitled “Attachment 1” of the Council agenda
statement for the ordinance codified in this chapter, on file in the office of the City Clerk.
R. “WTDIF” means Western Transportation Development Impact Fee.
3.54.030 Transportation facilities to be financed by the fees.
A. The Transportation Facilities which are the subject matter of the ETDIF, WTDIF, and BFDIF,
include (but are not limited to) Freeways, Expressways, Prime Arterials, Major Streets,
Collectors, Town Center Arterials, Gateway Streets, Urban Arterials, Commercial Boulevards,
Downtown Promenades, traffic signals, bicycle and pedestrian facilities, and capacity-
enhancing transportation management technologies and associated capital expenditures, as
detailed in the Engineer’s Reports on file in the office of the City Clerk. The Transportation
Facilities also include related one-time start-up costs or portions thereof.
B. The City Council of the City of Chula Vista may modify or amend the lists of Transportation
Facilities by resolution in order to maintain compliance with the City’s General Plan or the
capital improvement program.
C. The Transportation Facilities are those listed in the Engineer’s Reports, included by reference.
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3.54.040 Areas to which fees are applicable.
The areas of the City of Chula Vista to which the fees herein established shall be applicable shall
be the Eastern Area, the Western Area, and the Bayfront Area, as they may from time to time be
amended by ordinance of the City Council.
3.54.050 Establishment of fees.
A. Development impact fees in the amounts set forth in CVMC 3.54.090 are hereby established
to pay for the Transportation Facilities within the Eastern Area, the Western Area, and the
Bayfront Area. The Fees shall be paid no earlier than upon the issuance of Building Permits
and no later than Final Inspection or Certificate of Occupancy for each Development Project
within the City of Chula Vista.
B. Notwithstanding CVMC 3.54.050(A) above, the City Manager, in his/her sole discretion, may
require payment of the Fees in advance of Final Inspection or Certificate of Occupancy upon
the occurrence of any of the following events:
1. The change of ownership of the Development, or any portion or portions thereof;
2. Upon the Finance Director’s determination that the Fees are necessary based on the adopted
facilities program in accordance with California Government Code Section 66007(b)(1);
3. Upon a determination by the Finance Director that there exists a risk associated with the
collection of the Fees at a date later than permit issuance.
In no instance shall the Fees be paid earlier than Building Permit issuance.
3.54.060 Determination of fees by land use category.
The Fees shall be determined based on the average daily traffic generation of the Development
Project. The City Manager or designee shall calculate the traffic generation of the Development
Project using published traffic generation rates, traffic generation studies, traffic count data, traffic
impact studies, other relevant data and analysis, and/or engineering judgment.
For purposes of the Fees, single-family dwelling units shall include single-family detached homes
and detached condominiums; multi-family dwelling units shall include attached condominiums,
townhouses, duplexes, triplexes, accessory dwelling units, and apartments. The traffic generation
for residential land uses shall be calculated based on the number of dwelling units proposed in the
Development Project.
The traffic generation for non-residential land uses shall be calculated using various measures of
development intensity as described in published traffic generation rates. For these uses, rates based
on the square footage of the Development Project will in most cases be selected over rates based
on gross acreage, as determined by the City Manager or designee. As it applies to non-residential
land uses, gross acreage means all land area that the City Manager’s designee deems necessary
within the boundary of the parcel or parcels of the Development Project for which building permits
are being requested.
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In the ETDIF, the traffic generation rates for commercial retail land uses shall be reduced by 72%
to recognize the capture of locally-generated residential traffic as documented in “Eastern Area
Transportation Development Impact Fees” Engineer’s Report, dated March 2005.
3.54.070 Time to determine amount due.
The Fees for each Development shall be calculated based on the rates in effect at the time of
payment.
3.54.080 Purpose and use of fees.
The Fees collected shall be used by the City for the following purposes, in such order and at such
time as determined by the City Council:
A.To pay for such of the Transportation Facilities that the City Council determines should be
constructed, installed or purchased at that time, or to reimburse the City for Transportation
Facilities funded by the City from other sources.
B. To reimburse Developers who have been required or permitted by CVMC 3.54.140 to
construct, install or purchase approved Transportation Facilities identified in the Engineer’s
Reports, in such amounts as the City Council deems appropriate.
C. To pay for costs associated with administration of the Fees.
3.54.090 Amount of the fees.
A. The Fees shall be the amounts set forth in subsection (B) of this section.
The ETDIF shall be adjusted, starting on October 1, 2018, and on each October 1st thereafter,
based on the one-year change (July to July) in the Engineering News Record, Construction
Cost Index for the Los Angeles Region. Adjustments of the Fees based upon annual changes
to the applicable index shall be automatic and shall not require further action by the City
Council.
The BFDIF and WTDIF shall be adjusted on October 1, 2018, and on each October 1st
thereafter. The annual inflation adjustment will be based on the one-year change (from July to
July) in the Caltrans Highway Construction Cost Index or the Los Angeles Construction Cost
Index as published by the Engineering News Record (ENR), or an increase of at least two
percent. The program collects two percent of the total hard project cost estimate for program
administration. Adjustments to BFDIF and WTDIF authorized in this section shall also be
automatic in accordance with annual action taken by the San Diego Association of
Governments (SANDAG) Board of Directors and shall not require further action by the City
Council.
The Fees may also be reviewed and amended by the City Council as necessary based on
changes in the type, size, location or cost of the Transportation Facilities to be financed by the
Fees; changes in land use designation in the City’s General Plan; and upon other sound
engineering, financing, and planning information.
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B. The Fees as of October 1, 2017 are as follows:
BFDIF: $1,029.70 per average daily trip
ETDIF: $1,412.60 per average daily trip
WTDIF: $426.00 per average daily trip
C. Developer shall pay an Administrative Fee in cash concurrent with the Fees pursuant to CVMC
3.54.090(B) to fund staff activities related to administering the Fee.
3.54.100 Development projects exempt from the fees.
A. Development Projects by public agencies shall be exempt from the provisions of the Fees if
those projects are designed to provide the public service for which the agency is charged
(“Public Purpose”).
B. Nonprofit Community Purpose Facilities are also exempt inasmuch as these institutions
provide benefit to the community as a whole, including all land use categories which are the
subject matter of the Fees. The City Council hereby determines that it is appropriate to spread
any impact such Nonprofit Community Purpose Facilities might have to the other land use
categories subject to the Fees. In the event that a court determines that the exemption herein
extended to Nonprofit Community Purpose Facilities shall for any reason be invalid, the City
Council hereby allocates the Nonprofit Community Purpose Facilities’ Fair Share to the City
of Chula Vista and not to any of the land use categories which are the subject matter of the
development impact land use categories.
C. Development Projects that are additions or expansions to existing dwelling units or additions,
expansions, or changes of use to businesses shall be exempt if the addition, expansion or
change of use does not result in a net increase in dwelling units or non-residential intensity.
The Fees shall be assessed on any net additional dwelling units or non-residential intensity.
Any net reduction in dwelling units or non-residential intensity shall not be entitled to a refund,
but the property retains credit based on the former number of dwelling units or non-residential
intensity.
3.54.110 Authority for accounting and expenditures.
All funds collected shall be deposited into specific funds based on the Area within which the
Development occurs. Fees collected for the ETDIF shall be deposited into an Eastern
Transportation Development Impact Fee Fund, Fees collected for the WTDIF shall be deposited
into a Western Transportation Development Impact Fee Fund, and Fees collected for the BFDIF
shall be deposited into a Bayfront Transportation Development Impact Fee Fund (collectively, the
“Transportation Development Impact Fee Funds”) as established by the Director of Finance and
shall only be expended for the purposes identified herein.
3.54.120 Findings.
The City Council finds that collection of the Feesestablished by this chapter is necessary to provide
funds for the Transportation Facilities and to ensure certainty in the capital facilities budgeting for
growth-impacted public transportation facilities.
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3.54.130 Fees additional to other fees and charges.
The Fees are in addition to the requirements imposed by other City laws, policies or regulations
relating to the construction or the financing of the construction of public improvements within
subdivisions or Development Projects.
3.54.140 Developer construction of transportation facilities.
Developer may construct or finance a Transportation Facility in accordance with the following:
A.AnyDeveloper of a Development Project required by application of City ordinance, regulation,
or policy, as a condition of approval of a Development Permit to construct or finance a
Transportation Facility, or any Developer that proposes to design and construct a
Transportation Facility in conjunction with the execution of a Development Project shall
follow the procedure for doing same as set forth in this chapter and CVMC 2.56.160(H).
B. Unless otherwise stated herein, all Fee Credits shall be calculated on a dollar basis to be applied
toward payment of the assessed Fee at the time Fees are due, based on the then-current Fee
rate.
C. Fee Credits earned by constructing or financing Transportation Facilities financed by the Fee
may only be tendered for payment of the Fee for a Development within the area to which the
Fee is applicable. Fee Credits are not fungible as payment toward a different development
impact fee in the City than the Fee in which Fee Credit was earned.
D. The requirements of CVMC 3.54.145, 3.54.150, and 3.54.155 may, in the City’s discretion, be
modified through an agreement between the Developer and the City, as approved by
Resolution of the City Council.
3.54.145 Mandatory oversizing of facility –Duty to tender reimbursement offer.
Whenever a Developer of a Development Project is required as a condition of approval of a
Development Permit to cause a Transportation Facility to be built to accommodate the demands
created by the Development Project, the City may require the Developer to install, purchase, or
construct the Transportation Facility according to design specifications approved by the City, that
being with such supplemental size or capacity required by the City (“Oversized Capacity
Requirement”). If such an Oversized Capacity Requirement is imposed, the City shall tender to
the Developer a reimbursement agreement for City-approved costs associated with the Oversized
Capacity Requirement, to be paid in cash when funds are available, as determined by the City
Manager. The City may, in its discretion, enter into an agreement with the Developer to issue Fee
Credits in-lieu of a reimbursement agreement for costs associated with the Oversized Capacity
Requirement, or some combination thereof.
3.54.150 Procedure for issuance of credits or tender of reimbursement offer.
The City’s extension of Fee Credits or tender of a reimbursement offer to a Developer pursuant to
CVMC 3.54.140 and 3.54.145 shall be conditioned on the Developer complying with thefollowing
terms and conditions of this section:
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A. Developer shall comply with the procedures described in CVMC 2.56.160(H), except that City
Council approval to proceed shall not be required for Developer constructed Transportation
Facilities to be constructed for Fee Credit.
B. The request for authorization shall contain the information listed in this section and such other
information as may from time to time be requested by the City. In addition to the requirements
identified in CVMC 2.56.160(H), Developer shall perform the following:
1. Developer shall prepare plans and specifications for approval by the City;
2. Developer shall secure and dedicate any right-of-way required for the Transportation
Facility;
3. Developer shall secure all required permits and environmental clearances necessary for
construction of the Transportation Facility;
4. Developer shall provide a detailed cost estimate that itemizes those costs of the
construction attributable to the Transportation Facility and excludes any work attributable
to a specific subdivision project. The estimate shall be preliminary and the final amount
of reimbursement or Fee Credit shall be subject to final determination by the City Manager
or designee upon completion of the Transportation Facility;
5. Developer shall provide performance bonds in a form and amount and with a surety
satisfactory to the City (where the Developer intends to utilize provisions for immediate
credit, the performance bond shall be for 100 percent of the estimated cost of the
Transportation Facility, pursuant to subsection 4 above);
6. Developer shall pay all City fees and costs;
7. The City shall be held harmless and indemnified, and upon tender by the City, defended
by the Developer for any of the costs and liabilities associated with the construction of the
Transportation Facility;
8. The City shall not be responsible for any of the costs of constructing the Transportation
Facility. The Developer shall advance all necessary funds to construct the Transportation
Facility;
9. Developer shall be entitled to immediate Fee Credit equal to fifty (50) percent of the
estimated cost of the Transportation Facility upon City acceptance of the estimate provided
pursuant to subsection 4 above and the provision of performance bonds pursuant to
subsection 5 above;
10. Following receipt of valid bids for the Transportation Facility which comply with all
applicable requirements, entering into binding contracts for the construction of the
Transportation Facility, and meeting all requirements and conditions set forth above, as
approved by the City Manager or designee, the Developer shall be entitled to additional
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Fee Credits, increasing the cumulative immediate Fee Credit award to seventy-five (75)
percent of the bid amount attributable to the Transportation Facility, thereby retaining
twenty-five (25) percent of such Fee Credits until issuance by the City of a final
expenditure determination;
11. If the Developer uses all of the immediate credit before final completion of the
Transportation Facility project, then the developer may defer payment of development
impact fees for other Building Permits by providing to the City liquid security such as cash
or an irrevocable letter of credit, but not bonds or set-aside letters, in an amount equal to
the remaining amount of the estimated cost of the Transportation Facility project;
12. When all Transportation Facility construction work has been completed to the satisfaction
of the City Manager or designee, Developer shall submit to the City verification of
payments made for the construction of the Transportation Facility. City Manager or
designee shall make the final determination of which expenditures are eligible for Fee
Credit or reimbursement. The Developer shall receive additional Fee Credit in an amount
equal to the difference between the final expenditure determination and the seventy-five
(75) percent immediate Fee Credit issued pursuant to subsection 10 above. If the amount
of the final Fee Credit award is less than the deferred obligation pursuant to Subsection 11
above, then the Developer shall have thirty (30) calendar days to pay the deferred fee. If
the deferred fees are not paid within this period, the City may make a demand against the
liquid security and apply the proceeds to the fee obligation.
3.54.155 Developer transfer of credits.
A Developer who, in accordance with the provisions of CVMC 3.54.140, 3.54.145, and 3.54.150,
receives Fee Credits against future payments of the Fee may transfer those Fee Credits as provided
herein to another Developer (“Credit Transfer”). If the Developer complies with all conditions of
this section, the City shall permit and execute the Credit Transfer. Fee Credits associated with
facilities acquired or financed by assessment districts or special tax districts are not eligible for
Credit Transfer beyond the boundaries of said district(s).
A. The Developer shall provide the City with written request for Credit Transfer no later than
three (3) business days prior to the desired effective date of the Credit Transfer. The request
shall provide the following information:
1. The name of the Developer receiving the Credit Transfer;
2. The dollar value of the transferred Fee Credits; and
3. The Fee against which the Fee Credits will be applied.
B. Credit Transfers must abide by the limitations described in CVMC 3.54.140(C).
3.54.160 Procedure for fee modification or reduction.
A. Any Developer who, because of the nature or type of uses proposed for a Development Project,
contends that application of this Fee is unconstitutional or unrelated to mitigation of the
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impacts of the Development may apply to the City Manager, in writing, for a modification or
reduction of the Fee. The application shall state in detail the factual basis for the claim of
modification or reduction. The City Manager shall issue a decision within ten (10) business
days of receipt of the application for Fee modification or reduction. The decision of the City
Manager may be appealed to the City Council. Unless the requirement for timely filing is
waived by the City, the appeal shall be made in writing and filed with the City Clerk not later
than ten (10) business days after issuance of the City Manager’s decision. The appeal shall
state in detail the factual basis for the claim of modification or reduction. The City Council
shall consider the application at a public hearing on same, notice of which need not be
published other than by description on the agenda of the meeting at which the public hearing
is held. The City Council shall make reasonable efforts to hold the public hearing within sixty
(60) days of the filing of the appeal. The decision of the City Council shall be final. If a
reduction or modification is granted, any change in use within the Development Project shall
subject the Developer to payment of the Fee for the new use. The procedure provided by this
section is additional to any other procedure authorized by law for protesting or challenging the
Fee imposed by this chapter.
B. A Development Project which is designated and intended as a temporary use (10 years or less)
and which is conducted in facilities which are, by their nature, short-term interim facilities such
as a portable or modular building (including mobile homes, trailers, etc.) may qualify for a
waiver or reduction, as determined by the City Manager or designee. The City Manager or
designee’s determination may be appealed to the City Council pursuant to subsection A above.
C. A deferral of the Fee may be granted on the basis of Developer’s demonstrated economic
hardship as determined at the sole discretion of the City Manager or designee, on the condition
that the amount deferred bears interest at a fair market rate so as to constitute an approximate
value equivalent to a cash payment and that the amount deferred is adequately secured by
agreement with the applicant, the terms of which shall be subject to approval of the City
Attorney and the City Manager.
D. A deferral of the Fee may be granted on the basis that the Development Project offers a
significant public benefit as determined at the sole discretion of the City Manager or designee,
on the condition that the amount deferred bears interest at a fair market rate so as to constitute
an approximate value equivalent to a cash payment and that the amount deferred is adequately
secured by agreement with the applicant, the terms of which shall be subject to approval of the
City Attorney and the City Manager.
E. At a minimum, deferral agreements pursuant to CVMC 3.54.160(C) and 3.54.160(D) shall
require the following:
1. The Fee obligation be secured through a promissory note and a recorded lien, deed of trust,
or other security instrument acceptable to the City Manager or designee in real property of
at least equivalent value to the Fees due pursuant to CVMC 3.54.090, to be located within
the City of Chula Vista.
2. The outstanding deferred balance shall become due and payable if the Developer transfers
the Development Project property to any other party without the reasonable advance
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approval of the City Manager or designee and the acceptance of the other party of the
obligation to pay the outstanding balance of the deferred fees as provided herein, including,
without limitation, the provision of appropriate security acceptable by the City Manager or
designee.
F. Any Developer who proposes the construction of a new hotel/motel, which does not otherwise
receive an economic subsidy from the City, may apply to the City for a deferral and/or
reduction of the Fee based on the nature of hotel/motel.
1. A deferral pursuant to this section may be granted for a period of up to four (4) years from
the Certificate of Occupancy for the Development Project. The deferral period shall begin
upon the issuance of a temporary Certificate of Occupancy, as applicable. The total amount
deferred shall be secured through an agreement between the City and the developer, the
terms of which shall be subject to approval of the City Attorney and the City Manager. At
a minimum, the agreement shall require the following:
i. The Fee obligation be secured through a promissory note and a recorded
lien, deed of trust, or other security instrument acceptable to the City
Manager or designee in real property of at least equivalent value to the
Fees due pursuant to CVMC 3.54.090, to be located within the City of
Chula Vista.
ii. Any sale or transfer of the hotel/motel property shall require the new
owner to assume all obligations of the transferring party, including full
responsibility for the outstanding deferred balance. The City of Chula
Vista shall be provided with notice of the transfer and documentation
satisfactory to the City Manager or designee demonstrating that the new
owner has fully assumed all obligations of the transferring party.
Failure to provide such notice and documentation shall cause the
outstanding deferred balance to become due and payable.
iii. The City’s final determination of the Fees to be imposed on the
hotel/motel will be based on a traffic study to be paid for by the
developer and prepared and submitted for approval by the City’s
Director of Development Services within the fourth year of operation of
the fully developed hotel/motel. The Fees shall be assessed based upon
the rates in effect at the time of payment. Should the developer fail to
submit such traffic study and obtain the City’s approval thereof prior to
the expiration of the deferral period, the entire Fee imposed pursuant to
this chapter shall be immediately due and payable.
3.54.170 Assessment and special tax districts.
A. If any assessment or special tax district is established for any or all of the Transportation
Facilities listed in Engineer’s Reports, the Developer may apply to the City Council for a Fee
Credit in an amount equal to the Development’s attributable portion of the cost of the
authorized improvements associated with the Transportation Facility as determined by the City
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Manager or designee, plus approved incidental costs normally occurring with a construction
project, but excluding costs associated with assessment district proceedings or financing.
B. Whenever a Fee Credit is generated by constructing a Transportation Facility using assessment
district or special tax district financing, the credit shall only be applied to the Fee obligations
within that district.
3.54.180 Economic incentive credit.
The City Council may authorize the City to participate in the financing of Transportation Facilities
at the time of the appropriation of funds by City Council for the construction of an eligible
Transportation Facility; the City shall be eligible to receive a credit known hereafter as an
“Economic Incentive Credit.” Such Economic Incentive Credit may be applied to Fee obligations
for those Development Projects which the City Council determines, in its sole discretion, to be
beneficial to the City. The use of the Economic Incentive Credit may be subject to conditions
which shall be set forth in a written agreement between the Developer of the subject Development
Project and the City and approved by City Council.
The City shall only receive Economic Incentive Credit for Transportation Facility funding
provided in excess of the funding identified in the most recent Engineer’s Reports.
3.54.190 Fund loans.
A. Loans by the City. The City may loan funds to the Transportation Development Impact Fee
Fund to pay for Transportation Facilities should the Transportation Development Impact Fee
Fund have insufficient funds to cover the cost of planned Transportation Facilities. Said loans,
if granted, shall be approved by resolution of the City Council and shall carry interest rates
pursuant to City Council Policy 220-06 (Interfund Loan Policy) or such other Council Policies
as may be subsequently adopted.
B. Developer Loans. A Developer may loan funds to the City as outlined in CVMC 3.54.140 and
3.54.150. The City may repay said developer loans with interest, under the terms listed in
subsection (A) of this section.
3.54.200 Effective date.
This chapter shall become effective on October 25, 2018.
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
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The City Council of the City of Chula Vista intends this Ordinance to supplement, not to
duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in
light of that intent.
Section IV. Effective Date
This Ordinance shall take effect and be in force on the thirtieth day after its final passage.
Section V. Publication
The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause
the same to be published or posted according to law.
Presented by:Approved as to form by:
_____________________________________ ____________________________________
Kelly G. Broughton, FASLA Glen R. Googins
Director of Development Services City Attorney
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EasternTransportationDIF (ETDIF)WesternTransportationDIF (WTDIF)
BayfrontTransportationDIF (BFDIF)
54
805
5
125
5
805
TDIF Boundaries
[0 7000 14000
Feet
Path: P:\Projects\DEVELOPMENT_SERVICES\Engineering\DIF\TDIF_BW_Rev.mxd Date: 9/17/2018 12:56:03 PM
Not a Part
Not a Part
City of Chula VistaBayfront Transportation DIF (BFDIF)
Eastern Transportation DIF (ETDIF)
Western Transportation DIF (WTDIF)
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Chapter 3.54
TRANSPORTATION DEVELOPMENT IMPACT FEE
Sections:
3.54.010 Establishment of fee.
3.54.020 Definitions.
3.54.030 Transportation facilities to be financed by the fee.
3.54.040 Developer construction of transportation facilities.
3.54.050 Procedure for fee waiver or reduction.
3.54.060 Payment of DIF program support.
3.54.070 Exemptions.
3.54.080 Assessment districts.
3.54.090 Economic incentive credit.
3.54.010 Establishment of fee.
A. A development impact fee in the amounts set forth in subsection (C) of this section is hereby established to pay
for transportation improvements and facilities within the Eastern Territories of the City. The fee shall be paid before
the issuance of building permits for each development project within the Eastern Territories of the City. No building
permit shall be issued unless the development impact fee is paid. The fees shall be deposited into an Eastern
Territories transportation facilities fund, which is hereby created, and shall be expended only for the purposes set
forth in this chapter. The Director of Finance is authorized to establish various accounts within the fund for the
various improvements and facilities identified in this chapter and to periodically make expenditures from the fund
for the purposes set forth herein in accordance with the facilities phasing plan or capital improvement plan adopted
by the City Council. The City Council finds that collection of the fees established by this chapter at the time of the
building permit is necessary to ensure that funds will be available for the construction of facilities concurrent with
the need for those facilities and to ensure certainty in the capital facilities budgeting for the Eastern Territories.
B. The fee established by this section is in addition to the requirements imposed by other City laws, policies or
regulations relating to the construction or the financing of the construction of public improvements within
subdivisions or developments.
C. The amount of the fee for each development shall be calculated at the time of building permit issuance based
upon the following schedule:
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The density of the development type shall be based on the number of dwelling units per gross acre for single-family
or multifamily residential and shall be based upon the densities identified on the approved tentative map or approved
tentative parcel map entitling the development unless otherwise approved in writing by the City Manager’s
designee. “Gross acreage,” as it applies to the commercial, high rise commercial, industrial and office development
types, means all land area that the City Manager’s designee deems necessary within the boundary of the parcel or
parcels of the development project for which building permits are being requested.
The amount of the fee shall be adjusted, starting on October 1, 2015, and on each October 1st thereafter, based on
the one-year change (from July to July) in the Los Angeles Construction Cost Index as published monthly in the
Engineering News Record. For reference purposes, this update is based on the July 2014 Los Angeles Construction
Cost Index of 10,737.43. Adjustments to the above fees based upon the Construction Cost Index shall be automatic
and shall not require further action of the City Council.
The City Council may adjust the amount of the fee as necessary to reflect changes in the type, size, location or cost
of the transportation facilities to be financed by the fee, changes in land use designations in the City’s General Plan,
and upon other sound engineering, financing and planning information. Adjustments to the above fees resulting from
the above reviews may be made by resolution amending the master fee schedule.
D. The fees collected shall be used by the city for the following purposes as determined by the city council:
1. To pay for the construction of facilities by the city, or to reimburse the city for facilities installed by the city
with funds from other sources.
2. To reimburse developers who have been required by CVMC 3.54.040(A) to install improvements that are
major streets and are listed in CVMC 3.54.030.
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3. To reimburse developers who have been permitted to install improvements pursuant to CVMC 3.54.040(B).
(Ord. 3328 § 2, 2014; Ord. 3029 § 2, 2005; Ord. 2866 § 2, 2002; Ord. 2802 § 3, 1999).
3.54.020 Definitions.
For the purposes of this chapter, the following words or phrases shall be construed as defined herein, unless from the
context it appears that a different meaning is intended.
A. “Building permit” means a permit required by and issued pursuant to the Uniform Building Code.
B. “City engineer” means the city engineer, the city engineer’s designee or the city manager’s designee.
C. “Density” means dwelling units per gross acre identified for each planning area shown on the approved tentative
map or approved tentative parcel map or as determined by the city manager’s designee.
D. “Developer” means the owner or developer of a development.
E. “Development permit” means any discretionary permit, entitlement or approval for a development project issued
under any zoning or subdivision ordinance of the city.
F. “Development project” or “development” means any activity described in Section 66000 of the State Government
Code.
G. “Eastern Territories” generally means that area of the city located between Interstate 805 on the west, the city
sphere of influence boundary on the east and northeast, the city boundary on the north and the city’s southern
boundary on the south, excepting Villages 9 and 10 of the Otay Ranch (the University Site) as shown on the map
entitled “Figure I” of the update of the financial and engineering studies.
H. “Financial and engineering studies” means the “Interim Eastern Area Development Impact Fee for Streets” study
prepared by George T. Simpson and Willdan Associates dated November 1987; the “Eastern Area Development Fee
for Streets” study prepared by Willdan Associates dated November 19, 1990; the “Eastern Development Impact Fee
for Streets – 1993 Revision” study prepared by City staff dated July 13, 1993; the study prepared by Project Design
Consultants (“Eastern Area Development Impact Fees for Streets, 1999 Update”) dated October 25, 1999; the study
prepared by Willdan (“Eastern Area Development Impact Fees for Streets” dated July 2002); the study prepared by
City staff (“Eastern Area Transportation Development Impact Fees” dated March 2005); and the study prepared by
City staff (“Eastern Area Development Impact Fees” dated September 2014), which are on file in the office of the
City Clerk.
I. “High rise commercial” means commercial office usage five or more stories in height.
J. “Transportation facility project” means that project or portion of project, which involves the specified
improvements authorized by CVMC 3.54.030.
K. “Regional commercial” means any large commercial shopping center, larger than 60 acres, and containing more
than 800,000 square feet of commercial space.
L. “Mixed use residential” means residential units constructed above a commercial space.
M. “Mixed use commercial” means a commercial project with residential units located on second floor, or higher,
above the commercial space. (Ord. 3328 § 3(A), 2014; Ord. 3029 § 3, 2005; Ord. 2866 § 3, 2002; Ord. 2802 § 3,
1999).
3.54.030 Transportation facilities to be financed by the fee.
A. The transportation facilities and programs to be financed by the fee established by this chapter are:
3.** Telegraph Canyon Road from Paseo Del Rey to east of Paseo Ladera north side.
3a.** Telegraph Canyon Road/I-805 interchange, Phase II.
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3b.** Telegraph Canyon Road from I-805 interchange to 200 feet east of Telegraph Canyon Shopping Center.
4.** Telegraph Canyon Road, Phase I: Rutgers Avenue to Eastlake Boundary.
5.** Telegraph Canyon Road, Phase II: Paseo Ladera to Apache Drive.
6.** Telegraph Canyon Road, Phase III: Apache Drive to Rutgers Avenue.
7a.** East H Street through Rancho Del Rey.
7b.** East H Street/I-805 interchange modifications, Phase I.
7c.** East H Street/I-805 interchange modifications, Phase II.
8.** East H Street from Eastlake Drive to SR-125.
9a.** Otay Lakes Rd. intersection with East H Street.
9b.** Otay Lakes Road from Camino del Cerro Grande to Ridgeback Road.
10.** Central Avenue from Bonita Road to Corral Canyon Road.
10a.** La Media Road from Telegraph Canyon Road to East Palomar Street.
10b.** La Media Road from East Palomar Street to Olympic Parkway.
11.** Bonita Road from Otay Lakes Road to Willow Street.
14.** East H Street from SR-125 to San Miguel Road (Mt. Miguel Road).
15.** Proctor Valley Road (East H Street) from San Miguel Road (Mt. Miguel Road) to Hunte Parkway.
16.** Olympic Parkway from Brandywine Avenue to Paseo Ranchero.
17.** East Palomar Street from Oleander Avenue to Medical Center Drive.
17a.** East Palomar Street from Medical Center Drive to Paseo Ladera.
17b.** East Palomar Street from Paseo Ladera to Sunbow eastern boundary.
18.** Telegraph Canyon Road, Phase IV: from eastern boundary of Eastlake to Hunte Parkway.
19.** Eastlake Parkway from Otay Lakes Road to Eastlake High School southern boundary.
20.** Hunte Parkway from Proctor Valley Road to Telegraph Canyon Road.
21.** Hunte Parkway from Telegraph Canyon Road to Club House Drive.
2la.** Hunte Parkway from Club House Drive to Olympic Parkway.
22a.** Olympic Parkway, Phase IV: from SDG&E easement to Hunte Parkway.
22b.** Olympic Parkway, Phase V: from SR-125 to SDG&E easement.
23a.** Paseo Ranchero from Telegraph Canyon Road to East Palomar Street.
23b.** Paseo Ranchero from East Palomar Street to Olympic Parkway.
24a.** Olympic Parkway, Phase I: from Paseo Ranchero to La Media Road.
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24b.** Olympic Parkway, Phase II: from La Media Drive to East Palomar Street.
24c.** Olympic Parkway, Phase III: from East Palomar Street to SR-125.
24e.** Olympic Parkway, Phase VI: from Heritage Road to SR-125.
25a.** Olympic Parkway/I-805 interchange modifications.
25b.** Olympic Parkway from Oleander Avenue to Brandywine Avenue.
26.** East Palomar Street from Heritage Road to the Sunbow eastern boundary.
28a.** Otay Lakes Road from Hunte Parkway to Lake Crest Drive.
28b. Otay Lakes Road from Lake Crest Drive to Wueste Road.
29.** Olympic Parkway from Hunte Parkway to Wueste Road.
30.** Otay Lakes Road from SR-125 to Eastlake Parkway.
31.** Eastlake Parkway from Fenton Street to Otay Lakes Road.
32a.** East “H” Street (westbound) from I-805 to Hidden Vista Drive.
32b.** East “H” Street (eastbound) from I-805 to Terra Nova Shopping Center.
33a.** Bonita Road at Otay Lakes Road intersection.
33b.** Telegraph Canyon Road/I-805 interchange modifications, Phase I.
35.** East “H” Street at Otay Lakes Road intersection.
37.** Eastlake Parkway from CWA Easement to Olympic Parkway.
38.** East “H” Street from Paseo Del Rey to Tierra del Rey.
39.** Bonita Road from I-805 to Plaza Bonita Road.
41.** Brandywine/Medical Center Drive from Medical Center Court to Olympic Parkway.
42.** Birch Road from La Media Road to SR-125.
43. Birch Road from SR-125 to Eastlake Parkway.
45.** Eastlake Parkway from Olympic Parkway to Birch Road.
46. Eastlake Parkway from Birch Road to Hunte Parkway/Rock Mountain Road.
47a. San Miguel Ranch Road (formerly Mt. Miguel Road) from Proctor Valley Road North to SR-125.
47b.** Mt. Miguel Road from SR-125 to Proctor Valley Road (South), previously named East “H” Street.
48.** Hunte Parkway from Olympic Parkway to Eastlake Parkway.
51a.** La Media Road from Olympic Parkway to Santa Venetia Street.
51b.** La Media Road from Santa Venetia Street to Birch Road.
52a.** La Media Road from Birch Road to Santa Luna Street.
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52b. La Media Road from Santa Luna Street to Main Street Couplet intersection.
53a. La Media Road Couplet within Village 8 to Otay Valley Road.
53b. Main Street Couplet Road within Village 8W.
53c. Otay Valley Road from La Media Road to SR-125 R/W.
55a. Otay Lakes Road from East H Street to Telegraph Canyon Road.
55b.** Otay Lakes Road from Canyon Drive to East H Street.
56a.** Main Street from Nirvana Avenue to 1,600 feet west of Heritage Road/Rock Mountain Road.
56c. Otay Valley Road (formerly Main Street) from La Media Road to SR 125.
56d.** Main Street at I-805 underpass widening.
56e. Main Street from 1,600 feet west of Heritage Road/Rock Mountain Road to Heritage Road/Rock
Mountain Road (Main Street extension).
57. Heritage Road (formerly Paseo Ranchero) from Olympic Parkway to Main Street.
58a. Heritage Road (formerly Paseo Ranchero) from Main Street to southern City boundary (excludes
bridge crossing the Otay River).
58b. Heritage Road Bridge (formerly Paseo Ranchero) crossing the Otay River.
59a.** Proctor Valley Road from Hunte Parkway to Rolling Hills Ranch Neighborhood 9 west entrance.
59b.** Proctor Valley Road from Rolling Hills Ranch Neighborhood 9 west entrance to Rolling Hills Ranch
Neighborhood 9 east entrance.
59c. Proctor Valley Road from Agua Vista Drive/Northwoods Drive (Rolling Hills Ranch Neighborhood
9 east entrance) to easterly City boundary.
60a. Main Street (formerly Rock Mountain Rd.) from Heritage Rd. to La Media Rd.
60b. Main Street (formerly Rock Mountain Road) from Wolf Canyon Bridge to La Media Road.
60c. Main Street (formerly Rock Mountain Road) Bridge across Wolf Canyon.
60d. Main Street (formerly Rock Mountain Road) from La Media Road to SR-125.
61. Willow Street Bridge from Bonita Road to Sweetwater Road.
62. East H Street from 500 LF west of Buena Vista Way to Otay Lakes Road.
63. System wide intersection signalization area within the Eastern Territories.
64. Hunte Parkway (Main Street) from SR-125 to Eastlake Parkway.
65. Transportation demand management/transportation system management (formerly Traffic
Management Center).
66.** Transportation demand management (TDM).
67. Main Street (formerly Rock Mountain Road) bridge overcrossing and interchange ramps at SR-125.
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68. Otay Valley Road bridge overcrossing and interchange ramps at SR-125.
69. Millenia Avenue from Birch Road to Hunte Parkway (Main Street).
70. Discovery Falls Drive from Hunte Parkway to Village 9/Street “B”.
71. Street “B” from Hunte Parkway (Main Street) to Otay Valley Road.
72. Otay Valley Road from east of SR-125 R/W to easterly subdivision boundary.
** Project has been completed.
Current projects are listed in bold.
B. The city council may modify or amend the list of projects in order to maintain compliance with the circulation
element of the city’s general plan. (Ord. 3328 § 3(B), 2014; Ord. 3029 § 4, 2005; Ord. 2866 § 4, 2002; Ord. 2802 §
3, 1999).
3.54.040 Developer construction of transportation facilities.
A. Whenever a developer of a development project would be required by application of city law or policy, as a
condition of approval of a development permit to construct or finance the construction of a portion of a
transportation facility identified in CVMC 3.54.030, the city council may impose an additional requirement that the
developer install the improvements with supplemental size, length or capacity in order to ensure efficient and timely
construction of the transportation facilities network. If such a requirement is imposed, the city council shall, in its
discretion, enter into a reimbursement agreement with the developer, or give a credit against the fee otherwise levied
by this chapter on the development project, or some combination thereof.
B. Whenever a developer requests reimbursement, or a credit against fees, for work to be done or paid for by the
developer under subsection (A) of this section, the request shall be submitted in writing to the city manager’s
designee.
1. The request shall contain a description of the project with a detailed cost estimate which itemizes those costs
of the construction attributable to the transportation facility project and excludes any work attributable to a
specific subdivision project. The estimate is preliminary and the amount of reimbursement or credit against fees
is subject to final determination by the city manager’s designee. Additional information shall be provided to the
city by the developer upon request of the city.
2. Such reimbursement or credit against fees shall be subject to the following conditions:
a. Requirements of Developer.
i. Preparation of plans and specifications for approval by the city;
ii. Secure and dedicate any right-of-way required for the transportation facility project;
iii. Secure all required permits and environmental clearances necessary for the transportation facility
project;
iv. Provision of performance bonds (where the developer intends to utilize provisions for immediate
credit, the performance bond shall be for 100 percent of the value of the transportation facility project);
v. Payment of all city fees and costs.
b. The city will not be responsible for any of the costs of constructing the transportation facility project.
The developer shall advance all necessary funds to construct the transportation facility project.
c. The developer shall secure at least three qualified bids for work to be done and shall award the
construction contract to the lowest qualified bidder. The developer may combine the construction of the
transportation facility project with other development-related work and award one construction contract
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for the combined work based on a clearly identified process for determining the low bidder, all as
approved by the city manager’s designee. Should the construction contract be awarded to a qualified
bidder who did not submit the lowest bid for the transportation facility project portion of the contract, the
developer will only receive transportation development impact fee credit based on the lowest bid for the
transportation facility portion of the contract. Any claims for additional payment for extra work or charges
shall be justified, shall be documented to the satisfaction of the city manager’s designee and shall only be
reimbursed at the prices for similar work included in the lowest bid for the transportation facility portion
of the contract.
d. Upon complying with the conditions set forth in subsections (B)(1) and (B)(2)(a) of this section as
determined by the city and upon approval of the estimated cost by the city manager’s designee, the
developer shall be entitled to immediate credit for 50 percent of the estimated cost of the construction
attributable to the transportation facility project. Once the developer has received valid bids for the project
which comply with subsection (B)(2)(c) of this section, entered into binding contracts for the construction
of the project, and met the conditions set forth in subsections (B)(1) and (B)(2)(a) of this section as
determined by the city, all of which have been approved by the city manager’s designee, the amount of the
immediate credit shall be increased to 75 percent of the bid amount attributable to the transportation
facility project. The immediate credits shall be applied to the developer’s obligation to pay transportation
development impact fees for building permits issued after the establishment of the credit. The developer
shall specify these building permits to which the credit is to be applied at the time the developer submits
the building permit applications.
e. If the developer uses all of the immediate credit before final completion of the transportation facility
project, then the developer may defer payment of development impact fees for other building permits by
providing to the city liquid security such as cash or an irrevocable letter of credit, but not bonds or
set-aside letters, in an amount equal to the remaining amount of the estimated cost of the transportation
facility project.
f. When all work has been completed to the satisfaction of the city, the developer shall submit verification
of payments made for the construction of the transportation facility project to the city. The city manager’s
designee shall make the final determination on expenditures which are eligible for credit or cash
reimbursement.
g. After final determination of eligible expenditures has been made by the city manager’s designee and the
developer has complied with the conditions set forth in subsection (B) of this section, the final amount of
transportation development impact fee credits shall be determined by the city manager’s designee. The
developer shall receive credit against the deferred fee obligation in an amount equal to the difference
between the final expenditure determination and the amount of the 75 percent immediate credit used, if
any. The city shall notify the developer of the final deferred fee obligation, and of the amount of the
applicable credit. If the amount of the applicable credit is less than the deferred fee obligation, then the
developer shall have 30 days to pay the deferred fee. If the deferred fees are not paid within the 30-day
period, the city may make a demand against the liquid security and apply the proceeds to the fee
obligation.
h. At the time building permits are issued for the developer’s project, the city will incrementally apply
credit which the developer has accrued in lieu of collecting the required transportation development
impact fees. The amount of the credit to be applied to each building permit shall be based upon the fee
schedule in effect at the time of the building permit issuance. The city manager’s designee shall convert
such credit to an EDU basis for residential development and/or a gross acre basis for commercial or
industrial development for purposes of determining the amount of credit to be applied to each building
permit.
i. If the total eligible construction cost for the transportation facility project is more than the total
transportation development impact fees which will be required for the developer’s project, then the
amount in excess of development impact fees will be paid in cash when funds are available as determined
by the city manager; a reimbursement agreement will be executed; or the developer may waive
reimbursement and use the excess as credit against future transportation development impact fee
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obligations. The city may, in its discretion, enter into an agreement with the developer to convert excess
credit into EDU and/or gross acre credits for use against future development impact fee obligations at the
fee rate in effect on the date of the agreement.
j. The requirements of this subsection (B) of this section may, in the city’s discretion, be modified through
an agreement between the developer and the city and approved by city council.
C. Whenever a transportation development impact fee credit is generated by constructing a transportation facility
using assessment district or community facilities district financing, the credit shall only be applied to the
transportation development impact fee obligations within that district. (Ord. 2866 §§ 5, 6, 7, 2002; Ord. 2823 § 1,
2000; Ord. 2802 § 3, 1999).
3.54.050 Procedure for fee waiver or reduction.
A. Any developer who, because of the nature or type of uses proposed for a development project, contends that
application of the fee imposed by this chapter is unconstitutional, or unrelated to mitigation of the traffic needs or
burdens of the development, may apply to the city council for a waiver, reduction, or deferral of the fee. A
development which is designed and intended as a temporary use (10 years or less) and which is conducted in
facilities which are, by their nature, short-term interim facilities such as a portable or modular building (including
mobile homes, trailers, etc.) may qualify for a waiver, reduction, or deferral. In addition, a deferral may be granted
on the basis of demonstrated economic hardship on the condition that: (1) the use offers a significant public benefit;
(2) the amount deferred bears interest at a fair market rate so as to constitute an approximate value equivalent to a
cash payment; and (3) the amount deferred is adequately secured by agreement with the applicant. Unless the
requirement for timely filing is waived by the city, the application shall be made in writing and filed with the city
clerk not later than 10 days after notice of the public hearing on the development permit application or the project is
given, or if no development permit is required, at the time of the filing of the building permit application. The
application shall state in detail the factual basis for the claim of waiver or reduction.
B. Any developer who proposes a golf course and contends that the application of the development impact fee is
unrelated to the mitigation of the traffic needs of the golf course may apply to the city council for a reduction of the
fee based on the nature of the proposed golf course. An interim reduction may be granted in the city’s discretion
pursuant to a written agreement with the developer and upon developer’s submission of a preliminary traffic study
which adequately supports the contention that the fee imposed by this chapter is not related to the traffic to be
generated by the golf course. The city’s final decision on the fee to be imposed on the golf course will be based on a
traffic study to be paid for by the developer and prepared and submitted for approval by the city’s director of public
works within the fourth year of operation of the fully developed golf course. Should the developer fail to submit
such traffic study and obtain the city’s approval thereof during the fourth year of golf course operation, the entire fee
imposed by this chapter shall be immediately due and payable. If a fee reduction is permitted, the city council may
allow developer to pay the development impact fee over a 10-year period.
C. The city council shall consider the application at a public hearing on same, notice of which need not be published
other than by description on the agenda of the meeting at which the public hearing is held. Said public hearing
should be held within 60 days after its filing. The decision of the city council shall be final. If a deferral, reduction or
waiver is granted, it should be granted pursuant to an agreement with the applicant, and the property owner, if
different from the applicant, providing that any change in use within the project shall subject the development to
payment of the full fee. The procedure provided by this section is additional to any other procedure authorized by
law for protesting or challenging the fee imposed by this chapter. (Ord. 2802 § 3, 1999).
3.54.060 Payment of DIF program support.
The “DIF program support” shall, with no exceptions, be paid in cash concurrently with the development impact fee
at a rate equal to three percent of the DIF program’s hard project costs, as identified in the most recent financial and
engineering study, subject to the adjustment authorized by CVMC 3.54.010(C). (Ord. 3328 § 3(C), 2014; Ord. 2802
§ 3, 1999).
3.54.070 Exemptions.
Development projects by public agencies shall be exempt from the provisions of this fee.
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Exempt development uses with the following characteristics or activities as a principal use of land, generally
described as “community purpose facility”:
A. Social service activities, including such services as Boy Scouts, Girl Scouts, Boys Club and Girls Club,
Alcoholics Anonymous, YMCA and services for the homeless;
B. Public schools (elementary and secondary);
C. Private schools (elementary and secondary);
D. Day care (nonprofit only);
E. Senior care and recreation (nonprofit only);
F. Worship, spiritual growth and development. (Ord. 2802 § 3, 1999).
3.54.080 Assessment districts.
If any assessment or special taxing district is established for any or all of the facilities listed in CVMC 3.54.030, the
owner or developer of a project may apply to the city council for a credit against the fee in an amount equal to the
development’s attributable portion of the cost of the authorized improvements as determined by the director of
public works, plus incidental costs normally occurring with a construction project, but excluding costs associated
with assessment district proceedings or financing. (Ord. 2802 § 3, 1999).
3.54.090 Economic incentive credit.
The City may receive economic incentive credit only for those eligible projects (i) identified in CVMC 3.54.030 and
(ii) for amounts of funding not identified in the most recent financial and engineering study. (Ord. 3328 § 3(D),
2014; Ord. 2866 § 8, 2002).
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Chapter 3.55
WESTERN AND BAYFRONT TRANSPORTATION DEVELOPMENT IMPACT FEES
Sections:
3.55.010 General intent.
3.55.020 Definitions.
3.55.030 Public transportation facilities to be financed by the WTDIF.
3.55.035 Public transportation facilities to be financed by the BFDIF.
3.55.040 Territory to which fee applicable.
3.55.050 Establishment of a western and a Bayfront development impact fee.
3.55.060 Determination of fees by land use category.
3.55.070 Time to determine amount due.
3.55.080 Purpose and use of fee.
3.55.090 Amount of fees.
3.55.100 Development projects exempt from the fee.
3.55.110 Authority for accounting and expenditures.
3.55.120 Findings.
3.55.130 Fee additional to other fees and charges.
3.55.150 Developer construction of transportation facilities.
3.55.160 Procedure for fee waiver or reduction.
3.55.170 Assessment districts.
3.55.180 Economic incentive credit.
3.55.190 Fund loans.
3.55.200 Effective date.
3.55.010 General intent.
The City’s General Plan Land Use and Transportation Element requires that adequate public facilities be available to
accommodate increased population created by new development within the City of Chula Vista.
The City Council has determined that new development will create adverse impacts on the City’s existing public
transportation facilities which must be mitigated by the financing and construction of certain public transportation
facilities which are the subject of this chapter. New development contributes to the cumulative burden on these
public transportation facilities in direct relationship to the amount of vehicular traffic and population generated by
the development or the gross acreage of the commercial or industrial land in the development.
The City Council has determined that a reasonable means of financing the public transportation facilities is to charge
a fee on all developments within the area of the City east of Interstate I-805. Imposition of a transportation
development impact fee would be placed on all new development in the western portion of the City of Chula Vista
(WTDIF) and a separate development impact fee would be placed on all new development in the Bayfront Area of
the City of Chula Vista (BFDIF). These fees (WTDIF and BFDIF) would only be applied to new development for
which building permits have not yet been issued. The imposition and collection of the WTDIF and the BFDIF are
necessary in order to protect the public health, safety and welfare, thereby ensuring effective implementation of the
City’s General Plan.
Prior to the development of the Bayfront Development Master Plan, the western and Bayfront portions of the City of
Chula Vista were considered one area for which a single development impact fee was charged. However, subsequent
to the development of the Bayfront Development Master Plan, it became apparent that a significant difference in the
type of infrastructure needed in the Bayfront Area as compared to the rest of western Chula Vista exists and equity
requires that the two areas, previously combined, be separated such that each area will only be required to mitigate
the transportation-related impacts caused by development within the respective area; therefore, two separate benefit
areas are hereby established with different rates, the western transportation impact fee (WTDIF) and Bayfront
transportation development impact fee (BFDIF), to be applied to the Western Area and the Bayfront Area,
respectively. (Ord. 3327 § 1, 2014; Ord. 3110 § 2, 2008; Ord. 3109 § 2, 2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2,
2008; Ord. 3106 § 2, 2008).
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3.55.020 Definitions.
For the purposes of this chapter, the following words or phrases shall be construed as defined herein, unless from the
context it appears that a different meaning is intended.
A. “Building permit” means a permit required by and issued pursuant to the California Building Code.
B. “City Engineer” means the City Engineer, the City Engineer’s designee or the City Manager’s designee.
C. “Density” means dwelling units per gross acre identified for each planning area shown on the approved tentative
map or approved tentative parcel map or as determined by the City Manager’s designee.
D. “Developer” means the owner or developer of a development.
E. “Development permit” means any discretionary permit, entitlement or approval for a development project issued
under any zoning or subdivision ordinance of the City.
F. “Development project” or “development” means any activity described as the following:
1. Any new residential dwelling unit developed on vacant land;
2. Any new commercial/office or industrial development constructed on vacant land;
3. Any expansions to established developments or new developments on nonvacant land in those land use
categories listed in subsections (F)(1) and (2) of this section, if the result is a net increase in dwelling units. The
fee shall be based solely on this net dwelling unit increase;
4. Any new or expanding special land use project;
5. Any special purpose project developed on vacant land or nonvacant land, or expanded within a pre-existing
site, if the result is a net increase in dwelling units. The fee shall be based solely on this net dwelling unit
increase;
6. Any other development project not listed above but described in Sections 65927 and 65928 of the State
Government Code.
G. “Community purpose facility” means a facility which serves one of the following purposes:
1. Social service activities, including such services as Boy Scouts and Girl Scouts, Boys and Girls Club,
Alcoholics Anonymous and services for the homeless;
2. Public schools;
3. Private schools;
4. Day care;
5. Senior care and recreation;
6. Worship, spiritual growth and development.
H. “Western Area” generally means that area of the City of Chula Vista located between Interstate 5 on the west,
Interstate 805 on the east, the City boundary on the north and the City boundary on the south, also including the area
to the north of E Street, south of Naples Street and to the west of Interstate 5, as shown on the map entitled
“Attachment 6” of the Council agenda statement for the ordinance codified in this chapter, on file in the office of the
City Clerk.
I. “Bayfront Area” means that area of the City of Chula Vista generally west of Interstate 5 and between E Street
and Naples Street, excluding the United Technologies parcels, as shown on the map entitled “Attachment 6” of the
Council agenda statement for the ordinance codified in this chapter, on file in the office of the City Clerk.
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J. “Engineering study” and “Engineer’s Report” mean the Engineer’s Report for the Western Transportation
Development Impact Fee prepared by City staff, dated February 2008; and the Engineer’s Report (Nexus Study) for
the Western Transportation Development Impact Fee dated October 2014, and the Engineer’s Report (Nexus Study)
for the Bayfront Transportation Development Impact Fee, both prepared by City staff on file in the office of the City
Clerk.
K. Regional Arterial System (RAS). RAS roadways are generally described as those facilities that act as a critical
link in providing direct connections between communities ensuring system continuity and congestion relief in high
volume corridors. They are roadways that are listed in the most recent edition of SANDAG’s Regional
Transportation Plan (RTP) or have been accepted for inclusion into the RTP.
L. “Special land use” means any nonresidential, noncommercial/office or nonindustrial development project (e.g.,
Olympic Training Center, hospitals, utilities), or non-special purpose project.
M. “Special purpose project” means any for-profit community purpose facility (e.g., day care). (Ord. 3327 § 1,
2014; Ord. 3110 § 2, 2008; Ord. 3109 § 2, 2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
3.55.030 Public transportation facilities to be financed by the WTDIF.
A. The public transportation facilities (facilities) which are the subject matter of the WTDIF are listed below as
detailed in subsection (C) of this section and in the Engineer’s Report on file in the office of the City Clerk.
B. The City Council may modify or amend the list of projects in order to maintain compliance with the Circulation
Element of the City’s General Plan.
C. The facilities are as follows:
Interstate 5 Improvements
1.(I-5-1) I-5/E Street NB off-ramp
restriping, add lane
2.(I-5-2) I-5/E Street/Bay
Boulevard SB off-ramp
restriping, add lane
3.(I-5-4) E Street bridge widening
over I-5 (250' X 20')
4.(I-5-5) F Street bridge widening
over I-5 (250' X 20')
5.(I-5-6) I-5/H Street NB off-ramp
restriping, add lane
6.(I-5-7) I-5/H Street SB off-ramp
restriping, add lane
7.(I-5-8) H Street bridge widening
over I-5 (200' X 40')
8.(I-5-9) I-5/J Street NB off-ramp
restriping, add lane
9.(I-5-10) I-5/J Street
under-crossing widening, add
EB-NB (175' X 20' X
$350.00/sf)
10.(I-5-11) L Street bridge
widening over I-5 (S/W for peds
300' X 12') (18%)
11.(I-5-12) I-5/Bay Boulevard
(south of L Street) SB
on-/off-ramps traffic signal
12.(I-5-13) I-5/Industrial Boulevard
NB on-/off-ramps, traffic signal
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13.(I-5-14) I-5/Palomar Street
bridge widening
14.(I-5-16) I-5/Main Street bridge
widening (275 lf X 20 lf)
15.(I-5-17) I-5 HOV add managed
lanes from SR 905 to SR 54
(50% in CV)
Interstate-805 Improvements
16.(I-805-2) Main Street
under-crossing widening for
EB-NB left turn lane
State Route 54 Improvements
17.(SR-54-2) SR-54 EB off-ramp at
N. Fourth Avenue – add ramp
lane
Regional Arterial System (RAS) Projects
18.(RAS-1) Bonita Road from First
Avenue to I-805
19.(RAS-2) Broadway from C
Street to south of Main Street
(City Limits)
20.(RAS-3) E Street improvements
– First Ave. to Bonita Road/E.
Flower Street
21.(RAS-4) E Street improvements,
I-5 to 300 feet east of NB ramp
22.(RAS-5) E Street LRT grade
separation (underpass LRT
option)
23.(RAS-6) H Street LRT grade
separation (underpass LRT
option)
24.(RAS-7) H Street at Broadway
EB queue jumper lane and
traffic signal modifications
25.(RAS-9) H Street widening to
six lanes from I-5 to Broadway
26.(RAS-10) H Street
improvements from Second
Avenue to Hilltop Drive
27.(RAS-11) East H St. north side
improvements from Hilltop
Drive to I-805
28.(RAS-13) L Street
improvements south side west of
Industrial Boulevard
29.(RAS-14) Telegraph Canyon
Road at I-805 south side
sidewalk
30.(RAS-15) Orange Avenue from
Palomar Street to Hilltop Drive
31.(RAS-16) Palomar Street
improvements from I-5 to I-805
32.(RAS-17) Main St.
improvements from I-5 to I-805
(See GPU Table 5.10-6)
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33.(RAS-18) H Street/4th Avenue
add WB-NB and EB-SB right
turn lanes
34.(RAS-19) H Street/4th Avenue
add WB-NB and EB-SB right
turn lanes
35.TF-358 western transportation
development impact fee
36.(RAS-21) Palomar Street LRT
grade separation
37.(BP-4) Main Street bike lanes
from Industrial Boulevard and
I-805
38.(BP-7) H Street: Broadway to
Second Ave. ped improvements
39.(BP-8) Broadway: D Street to
Main Street ped improvements
Bicycle and Pedestrian Facilities Improvements
40.(BP-1) Bayshore Bikeway (bike
path) between E Street and F
Street
41.(BP-2) F Street sidewalk/bike
lane improvements from I-5 to
Fourth Avenue
42.(BP-3) Industrial Boulevard
improvements and bike lanes
from L Street to Main Street
43.(BP-9) Bayshore Bikeway (bike
path)
Other Roadways
44.(OR-2) Second Avenue/D Street
all-way stop installation
45.(OR-4) Traffic Management
Center
(Ord. 3327 § 1, 2014; Ord. 3110 § 2, 2008; Ord. 3109 § 2, 2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord.
3106 § 2, 2008).
3.55.035 Public transportation facilities to be financed by the BFDIF.
A. The public transportation facilities (facilities) which are the subject matter of the BFDIF are listed below as
detailed in subsection (C) of this section.
B. The City Council may modify or amend the list of projects in order to maintain compliance with the Circulation
Element of the City’s General Plan.
C. The facilities are as follows:
Interstate 5 Improvements
1.(I-5-1) I-5/E Street NB off-ramp
restriping, add lane
2.(I-5-2) I-5/E Street/Bay
Boulevard SB off-ramp
restriping, add lane
3.(I-5-4) E Street bridge widening
over I-5 (250' X 20')
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The Chula Vista Municipal Code is current through Ordinance 3433, passed July 24, 2018.
4.(I-5-5) F Street bridge widening
over I-5 (250' X 20')
5.(I-5-6) I-5/H Street NB off-ramp
restriping, add lane
6.(I-5-7) I-5/H Street SB off-ramp
restriping, add lane
7.(I-5-8) H Street bridge widening
over I-5 (200' X 40')
8.(I-5-9) I-5/J Street NB off-ramp
restriping, add lane
9.(I-5-11) L Street bridge
widening over I-5 (S/W for peds
300' X 12')
10.(I-5-12) I-5/Bay Blvd. (south of
L Street) SB on-/off-ramps
traffic signal
11.(I-5-13) I-5/Industrial Blvd. NB
on-/off-ramps traffic signal
12.(I-5-14) I-5/Palomar Street
bridge widening (275 lf X 50 lf)
13.(I-5-16) I-5/Main Street bridge
widening (275 lf X 20 lf)
14.(I-5-17) I-5 HOV add managed
lanes from SR 905 to SR 54
(50% in CV)
Regional Arterial System (RAS) Projects
15.(RAS-5) E Street LRT grade
separation (underpass LRT
option)
16.(RAS-6) H Street LRT grade
separation (underpass LRT
option)
17.(RAS-9) H Street widening to 6
lanes from I-5 to Broadway
Bicycle and Pedestrian Facilities Improvements (21% WTDIF
share per GPU)
18.(BP-1) Bayshore Bikeway (bike
path) between E Street and F
Street
19.(BP-9) Bayshore Bikeway (bike
path) between F Street and H
Street
20.(BAY-15) Lagoon Drive (950 lf)
bike and pedestrian trail
21.(BAY-27) Bayshore Bikeway
Bayfront Loop (14,400 lf)
Bayfront Roadways – RAS
22.(BAY-13) E Street extension
Bay Blvd. to H Street (52' X
5,450')
23.(BAY-17) H Street from E
Street to Marina Pkwy. (52' X
1,650') (BAY-6)
24.(BAY-18) Marina Pkwy. 2-lane
from H Street to C Street (52' X
1,100') (GP-2) (BAY-8)
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25.(BAY-20) Marina Pkwy. 2-lane
from J Street to C Street (52' X
1,450') (GP-2) (BAY-8)
26.(BAY-9) I-5/J Street NB
on-ramp add EB-LT and
WB-RT lanes (also I-5-10)
27.(BAY-22) J Street from Marina
Pkwy. to Bay Blvd. (1,650 lf)
(GP-8) (BAY-10)
28.(BAY-29) Pump station and
sewer relocation costs (Marina
Pkwy. and J Street)
Bayfront Roadways – Non-RAS
29.(BAY-14) F Street from Bay
Blvd. to west cul-de-sac (1,863
lf)
30.(BAY-19) “Street A” from H
Street to C Street (74' X 1,150')
(BAY-11)
31.(BAY-21) “Street A” from C St.
to J St. (1400 lf) (BAY-11)
32.(BAY-25) “Street A” – South of
J Street to Street “B”
33.(BAY-23) “Street C” – Marina
Pkwy. to Bay Blvd. (2,600 lf)
34.(BAY-16) G Street (300 lf)
35.(BAY-26) “Street B” – “A
Street” to Bay Blvd. (2,600 lf)
36.(BAY-24) Marina Way (1,100
lf)
37.(BAY-28) Traffic Signals
(seven)
38.(BAY-16) G Street (300 lf)
(Ord. 3327 § 1, 2014).
3.55.040 Territory to which fee applicable.
The areas of the City of Chula Vista to which the fees herein amended and established shall be applicable are as
follows: the WTDIF shall apply to the territorial limits of the Western Area and the BFDIF shall apply to the
Bayfront Area as such areas are defined above, or as they may be amended from time to time. (Ord. 3327 § 1, 2014;
Ord. 3110 § 2, 2008; Ord. 3109 § 2, 2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
3.55.050 Establishment of a western and a Bayfront development impact fee.
Development impact fees (fees) are hereby established to pay for the facilities within the territories. The fees shall
be paid upon the issuance of building permits for each development project within the Western Area and the
Bayfront Area. The WTDIF and the BFDIF fees in the amounts set forth in CVMC 3.55.090 are hereby established
to pay for transportation improvements and facilities within the Western and Bayfront Areas. (Ord. 3327 § 1, 2014;
Ord. 3110 § 2, 2008; Ord. 3109 § 2, 2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
3.55.060 Determination of fees by land use category.
A. For purposes of these fees, single-family dwelling units shall include single-family detached homes and detached
condominiums; multifamily dwelling units shall include attached condominiums, townhouses, duplexes, triplexes,
and apartments. The density of the development type shall be based on the number of dwelling units per gross acre
for single-family or multifamily residential and shall be based upon the densities identified on the approved tentative
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map or approved tentative parcel map entitling the development unless otherwise approved in writing by the City
Manager’s designee.
B. Commercial/office and industrial development projects shall be charged on a per acre or per square footage basis.
For purposes of this fee, “gross acreage and/or square footage” as it applies to the commercial, industrial and office
development types means all land area that the City Manager’s designee deems necessary within the boundary of the
parcel or parcels of the development project for which building permits are being requested.
C. The fee multiplied by the total number of dwelling units, square footage or acres within a given development
project represents a developer’s fair share (“fair share”) for that development project. (Ord. 3327 § 1, 2014; Ord.
3110 § 2, 2008; Ord. 3109 § 2, 2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
3.55.070 Time to determine amount due.
The fee for each development shall be calculated at the time of building permit issuance and shall be the amount as
indicated at that time, and not when the tentative map or final map was granted or applied for, or when the building
permit plan check was conducted, or when application was made for the building permit. No building permit shall
be issued unless the development impact fee is paid. The City Council finds that collection of the fees established by
this chapter at the time of the building permit is necessary to ensure that funds will be available for the construction
of facilities concurrent with the need for those facilities and to ensure certainty in the capital facilities budgeting for
the western part of the City. (Ord. 3327 § 1, 2014; Ord. 3110 § 2, 2008; Ord. 3109 § 2, 2008; Ord. 3108 § 2, 2008;
Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
3.55.080 Purpose and use of fee.
The fees collected shall be used by the City for the following purposes as determined by the City Council:
A. To pay for the construction of facilities by the City, or to reimburse the City for facilities installed by the City
with funds from other sources.
B. To reimburse developers who have been required by CVMC 3.55.150(A) to install improvements that are major
streets and are listed in CVMC 3.55.030 or 3.55.035.
C. To reimburse developers who have been permitted to install improvements pursuant to CVMC 3.55.150(B). (Ord.
3327 § 1, 2014; Ord. 3110 § 2, 2008; Ord. 3109 § 2, 2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2,
2008).
3.55.090 Amount of fees.
A. The fees shall be the amounts as set forth below in Table 1. The amount of a fee shall be adjusted on October 1,
2015, and on each October 1st thereafter. The annual inflation adjustment will be based on the one-year change
(from July to July) in the Caltrans Highway Construction Cost Index or the Los Angeles Construction Cost Index as
published by the Engineering News Record (ENR), or an increase of at least two percent. The program collects two
percent of the total hard project cost estimate for program administration.
B. Adjustments to the fees based upon the annual adjustment authorized in subsection (A) of this section shall be
automatic in accordance with annual action taken by the San Diego Association of Governments (SANDAG) Board
of Directors and shall not require further action by the City Council. The WTDIF and BFDIF may also be reviewed
and amended by the City Council as necessary based on changes in the type, size, location or cost of the facilities to
be financed by the fee; changes in land use designation in the City’s General Plan; and upon other sound
engineering, financing and planning information.
Table 1
PROPOSED WTDIF/BFDIF FEE PER LAND USE CLASSIFICATION
Proposed TDIF Fee per EDU:$3,907 $9,442
Land Use Classification EDUs WTDIF Rate BFDIF Rate
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Proposed TDIF Fee per EDU:$3,907 $9,442
Land Use Classification EDUs WTDIF Rate BFDIF Rate
RESIDENTIAL
Residential (LOW)0 to 6 dwelling units per acre 1 per EDU $3,907/DU $9,442/DU
Residential (MED)6.1 to 20 dwelling units per acre 0.8 per EDU $3,125/DU $7,554/DU
Residential (HIGH)Over 20 dwelling units per acre 0.6 per EDU $2,344/DU $5,665/DU
Mobile Home 0.5 per EDU $1,953/DU $4,721/DU
COMMERCIAL
Regional Commercial Contain 1 – 5 major dept. stores
and usually have more than 50
tenants. Typically larger than 40
acres.
20 EDU/Acre $78,140/Acre $188,840/Acre
Community Commercial Smaller in that size than
regional. Contain junior dept.
store or variety store, (i.e.,
Target Center with other
commercial stores) as a major
tenant and have 15 to 50 other
tenants. Smaller in size, 8 – 20
acres.
28 EDU/Acre $109,396/Acre $264,376/Acre
Neighborhood Commercial Less than 10 acres. Includes
supermarket and drug store. May
include office spaces.
48 EDU/Acre $187,536/Acre $453,216/Acre
Neighborhood Commercial Same as above but in square
footage.4.8 EDU/KSF $18,753/KSF $45,322/KSF
Street Front Commercial Commercial activities found
along major streets, not in a
planned center with limited
on-site parking.
16 EDU/Acre $62,512/Acre $151,072/Acre
Retail Commercial Specialty retail/strip commercial.16 EDU/Acre $62,512/Acre $151,072/Acre
Wholesale Trade Usually located near
transportation facilities.
Structures are usually large and
cover majority of the parcel.
Examples are clothing and
supply; also includes swap meet
areas.
24 EDU/Acre $93,768/Acre $226,608/Acre
OFFICE
High Rise Office More than 100,000 S.F. and 6+
stories 60 EDU/Acre $234,420/Acre $566,520/Acre
Low Rise Office < 6 Stories 30 EDU/Acre $117,210/Acre $283,260/Acre
Low Rise Office (in thousands of
square feet)
< 6 Stories 2 EDU/KSF $7,814/KSF $18,884/KSF
Medical Office Medical and dental facilities 50 EDU/Acre $195,350/Acre $472,100/Acre
LODGING
Low Rise Hotel/Motel < 4 Stories 20 EDU/Acre $78,140/Acre $188,840/Acre
Low Rise Hotel/Motel < 4 Stories 1 EDU/Room $3,907/Room $9,442/Room
High Rise Hotel >= 4 Stories 30/EDU/Acre $117,210/Acre $283,260/Acre
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Proposed TDIF Fee per EDU:$3,907 $9,442
Land Use Classification EDUs WTDIF Rate BFDIF Rate
INDUSTRY
Heavy Industry Shipbuilding, airframe, and
aircraft manufacturing. Usually
located next to transportation
facilities and commercial areas.
Parcels are typically 20 – 50
acres.
12 EDU/Acre $46,884/Acre $113,304/Acre
Warehouse/Storage Usually large buildings located
near freeways, industrial or strip
commercial areas.
6 EDU/Acre $23,442/Acre $56,652/Acre
Industrial Park Office/industrial uses clustered
into a center. The primary uses
are industrial but may include
high percentages of other uses in
service or retail activities.
9 EDU/Acre $35,163/Acre $84,978/Acre
Light Industrial All other industrial uses and
manufacturing not included in
categories above.
20 EDU/Acre $78,140/Acre $188,840/Acre
(Ord. 3327 § 1, 2014; Ord. 3246 § 1, 2012; Ord. 3214 § 1, 2011; Ord. 3110 § 2, 2008; Ord. 3109 § 2, 2008; Ord.
3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
3.55.100 Development projects exempt from the fee.
A. Development projects by public agencies shall be exempt from the provisions of the fee if those projects are
designed to provide the public service for which the agency is charged (public purpose).
B. Community purpose facilities which are not operated for profit (nonprofit community purpose facilities) are also
exempt inasmuch as these institutions provide benefit to the community as a whole, including all land use categories
which are the subject matter of the fee. The City Council hereby determines that it is appropriate to spread any
impact such nonprofit community purpose facilities might have to the other land use categories subject to the fee. In
the event that a court determines that the exemption herein extended to community purpose facilities shall for any
reason be invalid, the City Council hereby allocates the nonprofit community purpose facilities’ fair share to the
City of Chula Vista and not to any of the land use categories which are the subject matter of the development impact
land use categories.
C. Development projects which are additions or expansions to existing dwelling units or businesses, except special
land use projects, shall be exempt if the addition or expansion does not result in a net increase in dwelling units or
commercial/industrial acreage. (Ord. 3327 § 1, 2014; Ord. 3110 § 2, 2008; Ord. 3109 § 2, 2008; Ord. 3108 § 2,
2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
3.55.110 Authority for accounting and expenditures.
A. The fees collected shall be deposited into a specific fund based on the area within which the development occurs.
Fees collected for development within the Western Area shall be deposited into a western transportation
development impact fee financing fund and fees collected from development within the Bayfront Area shall be
deposited in a Bayfront development impact fee financing fund (WTDIF and BFDIF fee funds, or funds), which
funds are hereby created.
B. The Director of Finance is authorized to establish two separate funds for the facilities identified in this chapter, to
establish accounts within the funds for the various improvements and facilities identified in this chapter, and to
periodically make expenditures from the funds only for the purposes set forth herein in accordance with the facilities
phasing plan or capital improvement plan adopted by the City Council. (Ord. 3327 § 1, 2014; Ord. 3110 § 2, 2008;
Ord. 3109 § 2, 2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
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3.55.120 Findings.
The City Council finds that:
A. Collection of the fee established by this chapter at the time of the building permit issuance is necessary to provide
funds for the transportation facilities identified in CVMC 3.55.030 and 3.55.035 and to ensure certainty in the
capital facilities budgeting for growth-impacted public transportation facilities; and
B. The purpose of the fees hereby enacted prevents new development from reducing the quality and availability of
public transportation infrastructure facilities provided to residents of the City by requiring new development to
contribute to the cost of additional capital transportation infrastructure improvements needed to meet the growth
generated by such development; and
C. The revenue from the fees hereby enacted will be used to construct public facilities and infrastructure and pay for
other capital expenditures needed to serve new development as identified in the Engineer’s Report dated February
2008, the 2014 WTDIF Nexus Study, the 2014 BFDIF Nexus Study and as provided by the San Diego Unified Port
District (collectively “Fee Studies”); and
D. Based on analyses presented in the fee studies, there is a reasonable relationship between:
1. The use of the fees and the types of development projects on which they are imposed;
2. The need for facilities and the types of development projects on which the fees are imposed; and
3. The amount of the fee and the cost of the public facility or portion of the public facility attributable to the
development on which the fee is imposed. (Ord. 3327 § 1, 2014; Ord. 3110 § 2, 2008; Ord. 3109 § 2, 2008;
Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
3.55.130 Fee additional to other fees and charges.
This fee is in addition to the requirements imposed by other City laws, policies or regulations relating to the
construction or the financing of the construction of public improvements within subdivisions or developments. (Ord.
3327 § 1, 2014; Ord. 3110 § 2, 2008; Ord. 3109 § 2, 2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2,
2008).
3.55.150 Developer construction of transportation facilities.
A. Whenever a developer of a development project would be required by application of City law or policy, as a
condition of approval of a development permit, to construct or finance the construction of a portion of a
transportation facility identified in CVMC 3.55.030 or 3.55.035, the City Council may impose an additional
requirement that the developer install the improvements with supplemental size, length or capacity in order to ensure
efficient and timely construction of the transportation facilities network. If such a requirement is imposed, the City
Council shall, in its discretion, enter into a reimbursement agreement with the developer, or give a credit against the
fee otherwise levied by this chapter on the development project, or some combination thereof.
B. Whenever a developer requests reimbursement, or a credit against fees, for work to be done or paid for by the
developer under subsection (A) of this section, the request shall be submitted in writing to the City Manager’s
designee.
1. The request shall contain a description of the project with a detailed cost estimate which itemizes those costs
of the construction attributable to the transportation facility project and excludes any work attributable to a
specific subdivision project. The estimate is preliminary and the amount of reimbursement or credit against fees
is subject to final determination by the City Manager’s designee. Additional information shall be provided to
the City by the developer upon request of the City.
2. Such reimbursement or credit against fees shall be subject to the following conditions:
a. Requirements of Developer.
i. Preparation of plans and specifications for approval by the City;
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ii. Secure and dedicate any right-of-way required for the transportation facility project;
iii. Secure all required permits and environmental clearances necessary for the transportation facility
project;
iv. Provision of performance bonds (where the developer intends to utilize provisions for immediate
credit, the performance bond shall be for 100 percent of the value of the transportation facility project);
v. Payment of all City fees and costs.
b. The City will not be responsible for any of the costs of constructing the transportation facility project.
The developer shall advance all necessary funds to construct the transportation facility project.
c. The developer shall secure at least three qualified bids for work to be done and shall award the
construction contract to the lowest qualified bidder. The developer may combine the construction of the
transportation facility project with other development-related work and award one construction contract
for the combined work based on a clearly identified process for determining the low bidder, all as
approved by the City Manager’s designee. Should the construction contract be awarded to a qualified
bidder who did not submit the lowest bid for the transportation facility project portion of the contract, the
developer will only receive transportation development impact fee credit based on the lowest bid for the
transportation facility portion of the contract. Any claims for additional payment for extra work or charges
shall be justified, shall be documented to the satisfaction of the City Manager’s designee and shall only be
reimbursed at the prices for similar work included in the lowest bid for the transportation facility portion
of the contract.
d. Upon complying with the conditions set forth in subsections (B)(1) and (B)(2)(a) of this section as
determined by the City and upon approval of the estimated cost by the City Manager’s designee, the
developer shall be entitled to immediate credit for 50 percent of the estimated cost of the construction
attributable to the transportation facility project. Once the developer has received valid bids for the project
which comply with subsection (B)(2)(c) of this section, entered into binding contracts for the construction
of the project, and met the conditions set forth in subsections (B)(1) and (B)(2)(a) of this section as
determined by the City, all of which have been approved by the City Manager’s designee, the amount of
the immediate credit shall be increased to 75 percent of the bid amount attributable to the transportation
facility project. The immediate credits shall be applied to the developer’s obligation to pay transportation
development impact fees for building permits issued after the establishment of the credit. The developer
shall specify these building permits to which the credit is to be applied at the time the developer submits
the building permit applications.
e. If the developer uses all of the immediate credit before final completion of the transportation facility
project, then the developer may defer payment of development impact fees for other building permits by
providing to the City liquid security such as cash or an irrevocable letter of credit, but not bonds or
set-aside letters, in an amount equal to the remaining amount of the estimated cost of the transportation
facility project.
f. When all work has been completed to the satisfaction of the City, the developer shall submit verification
of payments made for the construction of the transportation facility project to the City. The City
Manager’s designee shall make the final determination on expenditures which are eligible for credit or
cash reimbursement.
g. After final determination of eligible expenditures has been made by the City Manager’s designee and
the developer has complied with the conditions set forth in subsection (B) of this section, the final amount
of transportation development impact fee credits shall be determined by the City Manager’s designee. The
developer shall receive credit against the deferred fee obligation in an amount equal to the difference
between the final expenditure determination and the amount of the 75 percent immediate credit used, if
any. The City shall notify the developer of the final deferred fee obligation, and of the amount of the
applicable credit. If the amount of the applicable credit is less than the deferred fee obligation, then the
developer shall have 30 days to pay the deferred fee. If the deferred fees are not paid within the 30-day
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period, the City may make a demand against the liquid security and apply the proceeds to the fee
obligation.
h. At the time building permits are issued for the developer’s project, the City will incrementally apply
credit which the developer has accrued in lieu of collecting the required transportation development
impact fees. The amount of the credit to be applied to each building permit shall be based upon the fee
schedule in effect at the time of the building permit issuance. The City Manager’s designee shall convert
such credit to an EDU basis for residential development and/or a gross acre basis for commercial or
industrial development for purposes of determining the amount of credit to be applied to each building
permit.
i. If the total eligible construction cost for the transportation facility project is more than the total
transportation development impact fees which will be required for the developer’s project, then the
amount in excess of development impact fees will be paid in cash when funds are available as determined
by the City Manager; a reimbursement agreement will be executed; or the developer may waive
reimbursement and use the excess as credit against future transportation development impact fee
obligations. The City may, in its discretion, enter into an agreement with the developer to convert excess
credit into EDU and/or gross acre credits for use against future development impact fee obligations at the
fee rate in effect on the date of the agreement.
j. The requirements of this subsection (B) may, in the City’s discretion, be modified through an agreement
between the developer and the City and approved by City Council.
C. Whenever a transportation development impact fee credit is generated by constructing a transportation facility
using assessment district or community facilities district financing, the credit shall only be applied to the
transportation development impact fee obligations within that district. (Ord. 3327 § 1, 2014; Ord. 3110 § 2, 2008;
Ord. 3109 § 2, 2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
3.55.160 Procedure for fee waiver or reduction.
A. Any developer who, because of the nature or type of uses proposed for a development project, contends that
application of the fee imposed by this chapter is unconstitutional, or unrelated to mitigation of the traffic needs or
burdens of the development, may apply to the City Council for a waiver, reduction, or deferral of the fee. A
development which is designed and intended as a temporary use (10 years or less) and which is conducted in
facilities which are, by their nature, short-term interim facilities such as a portable or modular building (including
mobile homes, trailers, etc.) may qualify for a waiver, reduction, or deferral. In addition, a deferral may be granted
on the basis of demonstrated economic hardship on the condition that: (1) the use offers a significant public benefit;
(2) the amount deferred bears interest at a fair market rate so as to constitute an approximate value equivalent to a
cash payment; and (3) the amount deferred is adequately secured by agreement with the applicant. Unless the
requirement for timely filing is waived by the City, the application shall be made in writing and filed with the City
Clerk not later than 10 days after notice of the public hearing on the development permit application or the project is
given or, if no development permit is required, at the time of the filing of the building permit application. The
application shall state in detail the factual basis for the claim of waiver or reduction.
B. The City Council shall consider the application at a public hearing on same, notice of which need not be
published other than by description on the agenda of the meeting at which the public hearing is held. Said public
hearing should be held within 60 days after its filing. The decision of the City Council shall be final. If a deferral,
reduction or waiver is granted, it should be granted pursuant to an agreement with the applicant and the property
owner, if different from the applicant, providing that any change in use within the project shall subject the
development to payment of the full fee. The procedure provided by this section is additional to any other procedure
authorized by law for protesting or challenging the fee imposed by this chapter. (Ord. 3327 § 1, 2014; Ord. 3110 § 2,
2008; Ord. 3109 § 2, 2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
3.55.170 Assessment districts.
If any assessment or special taxing district is established for any or all of the facilities listed in CVMC 3.55.030 or
3.55.035, the owner or developer of a project may apply to the City Council for a credit against the fee in an amount
equal to the development’s attributable portion of the cost of the authorized improvements as determined by the City
Manager’s designee, plus incidental costs normally occurring with a construction project, but excluding costs
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associated with assessment district proceedings or financing. (Ord. 3327 § 1, 2014; Ord. 3110 § 2, 2008; Ord. 3109
§ 2, 2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
3.55.180 Economic incentive credit.
The City Council may authorize the City to participate in the financing of transportation facility projects or portions
of transportation facility projects as defined in CVMC 3.55.030 or 3.55.035 at the time of the appropriation of funds
by City Council for the construction of an eligible transportation facility; the City shall be eligible to receive a credit
known hereafter as an economic incentive credit. Such economic incentive credit may be applied to development
impact fee obligations for those projects which the City Council determines, in its sole discretion, to be beneficial to
the City. The use of the economic incentive credit may be subject to conditions which shall be set forth in a written
agreement between the developer of the project and the City and approved by City Council.
The City may receive economic incentive credit only for those eligible projects identified in CVMC 3.55.030 and
3.55.035 for amounts of funding not identified in the most recent engineering study. (Ord. 3327 § 1, 2014; Ord.
3110 § 2, 2008; Ord. 3109 § 2, 2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
3.55.190 Fund loans.
A. Loans by the City. The City may loan funds to the funds to pay for facilities should the funds have insufficient
funds to cover the cost of said facility. Said loans, if granted, shall be approved upon the adoption of the annual City
budget or upon resolution of the City Council and shall carry interest rates as set by the City Council for each fiscal
year. A schedule for repayment of said loans shall be established at the time they are made and approved by the
Council, with a maximum term not to exceed the life of the fund.
B. Developer Loans. A developer may loan funds to the City as outlined in CVMC 3.55.150. The City may repay
said developer loans with interest, under the terms listed in subsection (A) of this section. (Ord. 3327 § 1, 2014; Ord.
3110 § 2, 2008; Ord. 3109 § 2, 2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
3.55.200 Effective date.
This chapter shall become effective January 31, 2015. (Ord. 3327 § 1, 2014; Ord. 3110 § 2, 2008; Ord. 3109 § 2,
2008; Ord. 3108 § 2, 2008; Ord. 3107 § 2, 2008; Ord. 3106 § 2, 2008).
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Chapter 3.54
TRANSPORTATION DEVELOPMENT IMPACT FEES
Sections:
3.54.010 General intent.
3.54.020 Definitions.
3.54.030 Transportation facilities to be financed by the fees.
3.54.040 Areas to which fees are applicable.
3.54.050 Establishment of fees.
3.54.060 Determination of fees by land use category.
3.54.070 Time to determine fee amount due.
3.54.080 Purpose and use of fees.
3.54.090 Amount of fees.
3.54.100 Development projects exempt from fees.
3.54.110 Authority for accounting and expenditures.
3.54.120 Findings.
3.54.130 Fees additional to other fees and charges.
3.54.140 Developer construction of transportation facilities.
3.54.145 Mandatory oversizing of facility – Duty to tender reimbursement offer.
3.54.150 Procedure for issuance of credits or tender of reimbursement offer.
3.54.155 Developer transfer of credits.
3.54.160 Procedure for fee modification or reduction.
3.54.170 Assessment and special tax districts.
3.54.180 Economic incentive credit.
3.54.190 Fund loans.
3.54.200 Effective date.
3.54.010 General intent.
The City’s General Plan Land Use and Transportation element requires that adequate
Transportation Facilities be available to accommodate increased population created by new
development within the City of Chula Vista.
The City Council of the City of Chula Vista has determined that new development will create
adverse impacts on the City’s existing public facilities, which must be mitigated by the financing
and construction of certain Transportation Facilities that are the subject of this chapter. New
development contributes to the cumulative burden on Transportation Facilities in direct
relationship to the demand for service generated by the development.
The City Council of the City of Chula Vista has determined that a reasonable means of financing
the impacted Transportation Facilities is to charge a Fee on all developments in located within the
following subareas of the City of Chula Vista: the Eastern Area, the Western Area, and the
Bayfront Area. Imposition of the transportation development impact fees on all new development
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for which building permits have not yet been issued is necessary in order to protect the public
safety and welfare, thereby ensuring effective implementation of the City’s General Plan.
3.54.020 Definitions.
For the purposes of this chapter, the following words or phrases shall be construed as defined in
this section, unless from the context it appears that a different meaning is intended:
A.“Accessory Dwelling Unit” means a dwelling unit as defined in CVMC 19.58.022.
B. “Bayfront Area” generally means that area of the City of Chula Vista generally west of
Interstate 5 and between E Street and Naples Street as shown on the map entitled “Attachment
1” of the Council agenda statement for the ordinance codified in this chapter, on file in the
office of the City Clerk.
C. “BFDIF” means the Bayfront Transportation Development Impact Fee.
D. “Building Permit” means a permit required by and issued pursuant to the Uniform Building
Code, as adopted by reference by this City.
E. “Developer” means the owner or developer of a Development Project.
F. “Development Permit” means any discretionary permit, entitlement or approval for a
Development Project issued under any zoning or subdivision ordinance of the City.
G. “Development Project” or “Development” means any activity described as the following:
1. Any new residential dwelling unit, including any accessory dwelling unit, developed
on vacant land;
2. Any new residential dwelling unit, including any accessory dwelling unit, developed
on nonvacant land, if the result is a net increase in demand for service. The fees shall
be based solely on the net increase in service demand;
3. Any physical conversion of an existing residential structure to create an accessory
dwelling unit, for which a Building Permit has been issued after September 25, 2018;
4. Any new non-residential Development constructed on vacant land;
5. Any expansion or intensification of non-residential Developments on nonvacant land,
if the result is a net increase in demand for service. The fees shall be based solely on
the net increase in service demand.
H. “Eastern Area” generally means that area of the City of Chula Vista located between Interstate
805 on the west, the city sphere of influence boundary on the east and northeast, the city
boundary on the north and the city’s southern boundary on the south as shown on the map
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entitled “Attachment 1” of the Council agenda statement for the ordinance codified in this
chapter, on file in the office of the City Clerk.
I. “Engineer’s Reports” mean the “Interim Eastern Area Development Impact Fee for Streets”
study prepared by George T. Simpson and Willdan Associates dated November 1987; the
“Eastern Area Development Fee for Streets” study prepared by Willdan Associates dated
November 19, 1990; the “Eastern Development Impact Fee for Streets – 1993 Revision” study
prepared by City staff dated July 13, 1993; the study prepared by Project Design Consultants
(“Eastern Area Development Impact Fees for Streets, 1999 Update”) dated October 25, 1999;
the study prepared by Willdan (“Eastern Area Development Impact Fees for Streets” dated
July 2002); the study prepared by City staff (“Eastern Area Transportation Development
Impact Fees” dated March 2005); and the study prepared by City staff (“Eastern Area
Development Impact Fees” dated September 2014), which are on file in the office of the City
Clerk. “Engineer’s Report’s” also mean the Engineer’s Report for the Western Transportation
Development Impact Fee prepared by City staff, dated February 2008; and the “Western
Transportation Development Impact Fee Nexus Study Update” dated October 2014, and the
“Bayfront Transportation Development Impact Fee Nexus Study” dated October 2014, both
prepared by City staff on file in the office of the City Clerk.
J. “ETDIF” means the Eastern Transportation Development Impact Fee.
K. “Fees” means the Transportation Development Impact Fees established pursuant to CVMC
3.54.050 and assessed in accordance with the Mitigation Fee Act (Government Code §§66000-
66025), as described in relevant Engineer’s Reports on all Development Projects located within
the Eastern Area, the Western Area, and the Bayfront Area.
L. “Fee Credit” means credits that Developers may receive for costs they incur designing and
constructing the Transportation Facilities in accordance with CVMC 3.54.150.
M. “Nonprofit Community Purpose Facility” means a facility that is not operated for profit and
that serves one of the following purposes:
1. Social and human service activities, including such services as Boy Scouts and Girl
Scouts, Boys and Girls Club, Alcoholics Anonymous and services for the homeless;
2. Public schools (primary and secondary only);
3. Private schools (primary and secondary only);
4. Day care;
5. Senior care and recreation;
6. Worship, spiritual growth, and development.
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N. “Published traffic generation rates” means rates used to calculate traffic generation that are
prepared and disseminated by local agencies, regional entities (such as Metropolitan Planning
Organizations), and professional societies with expertise in the development of traffic
generation rates.
O. “TDIF” means Transportation Development Impact Fee.
P. “Transportation Facility” means the project or portion of a project which involves the specified
improvements authorized by CVMC 3.54.030.
Q. “Western Area” generally means that area of the City of Chula Vista located between Interstate
5 on the west, Interstate 805 on the east, the city boundary on the north and the City boundary
on the south, also including the area to the north of E Street, south of Naples Street and to the
west of Interstate 5, as shown on the map entitled “Attachment 1” of the Council agenda
statement for the ordinance codified in this chapter, on file in the office of the City Clerk.
R. “WTDIF” means Western Transportation Development Impact Fee.
3.54.030 Transportation facilities to be financed by the fees.
A. The Transportation Facilities which are the subject matter of the ETDIF, WTDIF, and BFDIF,
include (but are not limited to) Freeways, Expressways, Prime Arterials, Major Streets,
Collectors, Town Center Arterials, Gateway Streets, Urban Arterials, Commercial Boulevards,
Downtown Promenades, traffic signals, bicycle and pedestrian facilities, and capacity-
enhancing transportation management technologies and associated capital expenditures, as
detailed in the Engineer’s Reports on file in the office of the City Clerk. The Transportation
Facilities also include related one-time start-up costs or portions thereof.
B. The City Council of the City of Chula Vista may modify or amend the lists of Transportation
Facilities by resolution in order to maintain compliance with the City’s General Plan or the
capital improvement program.
C. The Transportation Facilities are those listed in the Engineer’s Reports, included by reference.
3.54.040 Areas to which fees are applicable.
The areas of the City of Chula Vista to which the fees herein established shall be applicable shall
be the Eastern Area, the Western Area, and the Bayfront Area, as they may from time to time be
amended by ordinance of the City Council.
3.54.050 Establishment of fees.
A. Development impact fees in the amounts set forth in CVMC 3.54.090 are hereby established
to pay for the Transportation Facilities within the Eastern Area, the Western Area, and the
Bayfront Area. The Fees shall be paid no earlier than upon the issuance of Building Permits
and no later than Final Inspection or Certificate of Occupancy for each Development Project
within the City of Chula Vista.
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B. Notwithstanding CVMC 3.54.050(A) above, the City Manager, in his/her sole discretion, may
require payment of the Fees in advance of Final Inspection or Certificate of Occupancy upon
the occurrence of any of the following events:
1. The change of ownership of the Development, or any portion or portions thereof;
2. Upon the Finance Director’s determination that the Fees are necessary based on the adopted
facilities program in accordance with California Government Code Section 66007(b)(1);
3. Upon a determination by the Finance Director that there exists a risk associated with the
collection of the Fees at a date later than permit issuance.
In no instance shall the Fees be paid earlier than Building Permit issuance.
3.54.060 Determination of fees by land use category.
The Fees shall be determined based on the average daily traffic generation of the Development
Project. The City Manager or designee shall calculate the traffic generation of the Development
Project using published traffic generation rates, traffic generation studies, traffic count data, traffic
impact studies, other relevant data and analysis, and/or engineering judgment.
For purposes of the Fees, single-family dwelling units shall include single-family detached homes
and detached condominiums; multi-family dwelling units shall include attached condominiums,
townhouses, duplexes, triplexes, accessory dwelling units, and apartments. The traffic generation
for residential land uses shall be calculated based on the number of dwelling units proposed in the
Development Project.
The traffic generation for non-residential land uses shall be calculated using various measures of
development intensity as described in published traffic generation rates. For these uses, rates based
on the square footage of the Development Project will in most cases be selected over rates based
on gross acreage, as determined by the City Manager or designee. As it applies to non-residential
land uses, gross acreage means all land area that the City Manager’s designee deems necessary
within the boundary of the parcel or parcels of the Development Project for which building permits
are being requested.
In the ETDIF, the traffic generation rates for commercial retail land uses shall be reduced by 72%
to recognize the capture of locally-generated residential traffic as documented in “Eastern Area
Transportation Development Impact Fees” Engineer’s Report, dated March 2005.
3.54.070 Time to determine amount due.
The Fees for each Development shall be calculated based on the rates in effect at the time of
payment.
3.54.080 Purpose and use of fees.
The Fees collected shall be used by the City for the following purposes, in such order and at such
time as determined by the City Council:
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A. To pay for such of the Transportation Facilities that the City Council determines should be
constructed, installed or purchased at that time, or to reimburse the City for Transportation
Facilities funded by the City from other sources.
B. To reimburse Developers who have been required or permitted by CVMC 3.54.140 to
construct, install or purchase approved Transportation Facilities identified in the Engineer’s
Reports, in such amounts as the City Council deems appropriate.
C. To pay for costs associated with administration of the Fees.
3.54.090 Amount of the fees.
A. The Fees shall be the amounts set forth in subsection (B) of this section.
The ETDIF shall be adjusted, starting on October 1, 2018, and on each October 1st thereafter,
based on the one-year change (July to July) in the Engineering News Record, Construction
Cost Index for the Los Angeles Region. Adjustments of the Fees based upon annual changes
to the applicable index shall be automatic and shall not require further action by the City
Council.
The BFDIF and WTDIF shall be adjusted on October 1, 2018, and on each October 1st
thereafter. The annual inflation adjustment will be based on the one-year change (from July to
July) in the Caltrans Highway Construction Cost Index or the Los Angeles Construction Cost
Index as published by the Engineering News Record (ENR), or an increase of at least two
percent. The program collects two percent of the total hard project cost estimate for program
administration. Adjustments to BFDIF and WTDIF authorized in this section shall also be
automatic in accordance with annual action taken by the San Diego Association of
Governments (SANDAG) Board of Directors and shall not require further action by the City
Council.
The Fees may also be reviewed and amended by the City Council as necessary based on
changes in the type, size, location or cost of the Transportation Facilities to be financed by the
Fees; changes in land use designation in the City’s General Plan; and upon other sound
engineering, financing, and planning information.
B. The Fees as of October 1, 2017 are as follows:
BFDIF: $1,029.70 per average daily trip
ETDIF: $1,412.60 per average daily trip
WTDIF: $426.00 per average daily trip
C. Developer shall pay an Administrative Fee in cash concurrent with the Fees pursuant to CVMC
3.54.090(B) to fund staff activities related to administering the Fee.
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3.54.100 Development projects exempt from the fees.
A. Development Projects by public agencies shall be exempt from the provisions of the Fees if
those projects are designed to provide the public service for which the agency is charged
(“Public Purpose”).
B. Nonprofit Community Purpose Facilities are also exempt inasmuch as these institutions
provide benefit to the community as a whole, including all land use categories which are the
subject matter of the Fees. The City Council hereby determines that it is appropriate to spread
any impact such Nonprofit Community Purpose Facilities might have to the other land use
categories subject to the Fees. In the event that a court determines that the exemption herein
extended to Nonprofit Community Purpose Facilities shall for any reason be invalid, the City
Council hereby allocates the Nonprofit Community Purpose Facilities’ Fair Share to the City
of Chula Vista and not to any of the land use categories which are the subject matter of the
development impact land use categories.
C. Development Projects that are additions or expansions to existing dwelling units or businesses
shall be exempt if the addition or expansion does not result in a net increase in dwelling units
or non-residential intensity. The Fees shall be assessed on any net additional dwelling units or
non-residential intensity. Any net reduction in dwelling units or non-residential intensity shall
not be entitled to a refund.
3.54.110 Authority for accounting and expenditures.
All funds collected shall be deposited into specific funds based on the Area within which the
Development occurs. Fees collected for the ETDIF shall be deposited into an Eastern
Transportation Development Impact Fee Fund, Fees collected for the WTDIF shall be deposited
into a Western Transportation Development Impact Fee Fund, and Fees collected for the BFDIF
shall be deposited into a Bayfront Transportation Development Impact Fee Fund (collectively, the
“Transportation Development Impact Fee Funds”) as established by the Director of Finance and
shall only be expended for the purposes identified herein.
3.54.120 Findings.
The City Council finds that collection of the Feesestablished by this chapter is necessary to provide
funds for the Transportation Facilities and to ensure certainty in the capital facilities budgeting for
growth-impacted public transportation facilities.
3.54.130 Fees additional to other fees and charges.
The Fees are in addition to the requirements imposed by other City laws, policies or regulations
relating to the construction or the financing of the construction of public improvements within
subdivisions or Development Projects.
3.54.140 Developer construction of transportation facilities.
Developer may construct or finance a Transportation Facility in accordance with the following:
A.AnyDeveloper of a Development Project required by application of City ordinance, regulation,
or policy, as a condition of approval of a Development Permit to construct or finance a
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Transportation Facility, or any Developer that proposes to design and construct a
Transportation Facility in conjunction with the prosecution of a Development Project shall
follow the procedure for doing same as set forth in this chapter and CVMC 2.56.160(H).
B. Unless otherwise stated herein, all FeeCredits shall be calculated on a dollar basis to be applied
toward payment of the assessed Fee at the time Fees are due, based on the then-current Fee
rate.
C. Fee Credits earned by constructing or financing Transportation Facilities financed by the Fee
may only be tendered for payment of the Fee for a Development within the area to which the
Fee is applicable. Fee Credits are not fungible as payment toward a different development
impact fee in the City than the Fee in which Fee Credit was earned.
D. The requirements of CVMC 3.54.145, 3.54.150, and 3.54.155 may, in the City’s discretion, be
modified through an agreement between the Developer and the City, as approved by
Resolution of the City Council.
3.54.145 Mandatory oversizing of facility –Duty to tender reimbursement offer.
Whenever a Developer of a Development Project is required as a condition of approval of a
Development Permit to cause a Transportation Facility to be built to accommodate the demands
created by the Development Project, the City may require the Developer to install, purchase, or
construct the Transportation Facility according to design specifications approved by the City, that
being with such supplemental size or capacity required by the City (“Oversized Capacity
Requirement”). If such an Oversized Capacity Requirement is imposed, the City shall tender to
the Developer a reimbursement agreement for City-approved costs associated with the Oversized
Capacity Requirement, to be paid in cash when funds are available, as determined by the City
Manager. The City may, in its discretion, enter into an agreement with the Developer to issue Fee
Credits in-lieu of a reimbursement agreement for costs associated with the Oversized Capacity
Requirement, or some combination thereof.
3.54.150 Procedure for issuance of credits or tender of reimbursement offer.
The City’s extension of Fee Credits or tender of a reimbursement offer to a Developer pursuant to
CVMC 3.54.140 and 3.54.145 shall be conditioned on the Developer complying with thefollowing
terms and conditions of this section:
A. Developer shall comply with the procedures described in CVMC 2.56.160(H), except that City
Council approval to proceed shall not be required for Developer constructed Transportation
Facilities to be constructed for Fee Credit.
B. The request for authorization shall contain the information listed in this section and such other
information as may from time to time be requested by the City. In addition to the requirements
identified in CVMC 2.56.160(H), Developer shall perform the following:
1. Developer shall prepare plans and specifications for approval by the City;
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2. Developer shall secure and dedicate any right-of-way required for the Transportation
Facility;
3. Developer shall secure all required permits and environmental clearances necessary for
construction of the Transportation Facility;
4. Developer shall provide a detailed cost estimate that itemizes those costs of the
construction attributable to the Transportation Facility and excludes any work attributable
to a specific subdivision project. The estimate shall be preliminary and the final amount
of reimbursement or Fee Credit shall be subject to final determination by the City Manager
or designee upon completion of the Transportation Facility;
5. Developer shall provide performance bonds in a form and amount and with a surety
satisfactory to the City (where the Developer intends to utilize provisions for immediate
credit, the performance bond shall be for 100 percent of the estimated cost of the
Transportation Facility, pursuant to subsection 4 above);
6. Developer shall pay all City fees and costs;
7. The City shall be held harmless and indemnified, and upon tender by the City, defended
by the Developer for any of the costs and liabilities associated with the construction of the
Transportation Facility;
8. The City shall not be responsible for any of the costs of constructing the Transportation
Facility. The Developer shall advance all necessary funds to construct the Transportation
Facility;
9. Developer shall be entitled to immediate Fee Credit equal to fifty (50) percent of the
estimated cost of the Transportation Facility upon City acceptance of the estimate provided
pursuant to subsection 4 above and the provision of performance bonds pursuant to
subsection 5 above;
10. Following receipt of valid bids for the Transportation Facility which comply with all
applicable requirements, entering into binding contracts for the construction of the
Transportation Facility, and meeting all requirements and conditions set forth above, as
approved by the City Manager or designee, the Developer shall be entitled to additional
Fee Credits, increasing the cumulative immediate Fee Credit award to seventy-five (75)
percent of the bid amount attributable to the Transportation Facility, thereby retaining
twenty-five (25) percent of such Fee Credits until issuance by the City of a final
expenditure determination;
11. If the Developer uses all of the immediate credit before final completion of the
Transportation Facility project, then the developer may defer payment of development
impact fees for other Building Permits by providing to the City liquid security such as cash
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or an irrevocable letter of credit, but not bonds or set-aside letters, in an amount equal to
the remaining amount of the estimated cost of the Transportation Facility project;
12. When all Transportation Facility construction work has been completed to the satisfaction
of the City Manager or designee, Developer shall submit to the City verification of
payments made for the construction of the Transportation Facility. City Manager or
designee shall make the final determination of which expenditures are eligible for Fee
Credit or reimbursement. The Developer shall receive additional Fee Credit in an amount
equal to the difference between the final expenditure determination and the seventy-five
(75) percent immediate Fee Credit issued pursuant to subsection 10 above. If the amount
of the final Fee Credit award is less than the deferred obligation pursuant to Subsection 11
above, then the Developer shall have thirty (30) calendar days to pay the deferred fee. If
the deferred fees are not paid within this period, the City may make a demand against the
liquid security and apply the proceeds to the fee obligation.
3.54.155 Developer transfer of credits.
A Developer who, in accordance with the provisions of CVMC 3.54.140, 3.54.145, and 3.54.150,
receives Fee Credits against future payments of the Fee may transfer those Fee Credits as provided
herein to another Developer (“Credit Transfer”). If the Developer complies with all conditions of
this section, the City shall permit and execute the Credit Transfer. Fee Credits associated with
facilities acquired or financed by assessment districts or special tax districts are not eligible for
Credit Transfer beyond the boundaries of said district(s).
A. The Developer shall provide the City with written request for Credit Transfer no later than
three (3) business days prior to the desired effective date of the Credit Transfer. The request
shall provide the following information:
1. The name of the Developer receiving the Credit Transfer;
2. The dollar value of the transferred Fee Credits; and
3. The Fee against which the Fee Credits will be applied.
B. Credit Transfers must abide by the limitations described in CVMC 3.54.140(C).
3.54.160 Procedure for fee modification or reduction.
A. Any Developer who, because of the nature or type of uses proposed for a Development Project,
contends that application of this Fee is unconstitutional or unrelated to mitigation of the
impacts of the Development may apply to the City Manager, in writing, for a modification or
reduction of the Fee. The application shall state in detail the factual basis for the claim of
modification or reduction. The City Manager shall issue a decision within ten (10) business
days of receipt of the application for Fee modification or reduction. The decision of the City
Manager may be appealed to the City Council. Unless the requirement for timely filing is
waived by the City, the appeal shall be made in writing and filed with the City Clerk not later
than ten (10) business days after issuance of the City Manager’s decision. The appeal shall
state in detail the factual basis for the claim of modification or reduction. The City Council
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shall consider the application at a public hearing on same, notice of which need not be
published other than by description on the agenda of the meeting at which the public hearing
is held. The City Council shall make reasonable efforts to hold the public hearing within sixty
(60) days of the filing of the appeal. The decision of the City Council shall be final. If a
reduction or modification is granted, any change in use within the Development Project shall
subject the Developer to payment of the Fee for the new use. The procedure provided by this
section is additional to any other procedure authorized by law for protesting or challenging the
Fee imposed by this chapter.
B. A Development Project which is designated and intended as a temporary use (10 years or less)
and which is conducted in facilities which are, bytheir nature, short-term interim facilities such
as a portable or modular building (including mobile homes, trailers, etc.) may qualify for a
waiver or reduction, as determined by the City Manager or designee. The City Manager or
designee’s determination may be appealed to the City Council pursuant to subsection A above.
C. A deferral of the Fee may be granted on the basis of Developer’s demonstrated economic
hardship as determined at the sole discretion of the City Manager or designee, on the condition
that the amount deferred bears interest at a fair market rate so as to constitute an approximate
value equivalent to a cash payment and that the amount deferred is adequately secured by
agreement with the applicant, the terms of which shall be subject to approval of the City
Attorney and the City Manager.
D. A deferral of the Fee may be granted on the basis that the Development Project offers a
significant public benefit as determined at the sole discretion of the City Manager or designee,
on the condition that the amount deferred bears interest at a fair market rate so as to constitute
an approximate value equivalent to a cash payment and that the amount deferred is adequately
secured by agreement with the applicant, the terms of which shall be subject to approval of the
City Attorney and the City Manager.
E. At a minimum, deferral agreements pursuant to CVMC 3.54.160(C) and 3.54.160(D) shall
require the following:
1. The Fee obligation be secured through a promissory note and a recorded lien, deed of trust,
or other security instrument acceptable to the City Manager or designee in real property of
at least equivalent value to the Fees due pursuant to CVMC 3.54.090, to be located within
the City of Chula Vista.
2. The outstanding deferred balance shall become due and payable if the Developer transfers
the Development Project property to any other party without the reasonable advance
approval of the City Manager or designee and the acceptance of the other party of the
obligation to pay the outstanding balance of the deferred fees as provided herein, including,
without limitation, the provision of appropriate security acceptable by the City Manager or
designee.
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F. Any Developer who proposes the construction of a new hotel/motel, which does not otherwise
receive an economic subsidy from the City, may apply to the City for a deferral and/or
reduction of the Fee based on the nature of hotel/motel.
1. A deferral pursuant to this section may be granted for a period of up to four (4) years from
the Certificate of Occupancy for the Development Project. The deferral period shall begin
upon the issuance of a temporary Certificate of Occupancy, as applicable. The total amount
deferred shall be secured through an agreement between the City and the developer, the
terms of which shall be subject to approval of the City Attorney and the City Manager. At
a minimum, the agreement shall require the following:
i. The Fee obligation be secured through a promissory note and a recorded
lien, deed of trust, or other security instrument acceptable to the City
Manager or designee in real property of at least equivalent value to the
Fees due pursuant to CVMC 3.54.090, to be located within the City of
Chula Vista.
ii. Any sale or transfer of the hotel/motel property shall require the new
owner to assume all obligations of the transferring party, including full
responsibility for the outstanding deferred balance. The City of Chula
Vista shall be provided with notice of the transfer and documentation
satisfactory to the City Manager or designee demonstrating that the new
owner has fully assumed all obligations of the transferring party.
Failure to provide such notice and documentation shall cause the
outstanding deferred balance to become due and payable.
iii. The City’s final determination of the Fees to be imposed on the
hotel/motel will be based on a traffic study to be paid for by the
developer and prepared and submitted for approval by the City’s
Director of Development Services within the fourth year of operation of
the fully developed hotel/motel. The Fees shall be assessed based upon
the rates in effect at the time of payment. Should the developer fail to
submit such traffic study and obtain the City’s approval thereof prior to
the expiration of the deferral period, the entire Fee imposed pursuant to
this chapter shall be immediately due and payable.
3.54.170 Assessment and special tax districts.
A. If any assessment or special tax district is established for any or all of the Transportation
Facilities listed in Engineer’s Reports, the Developer may apply to the City Council for a Fee
Credit in an amount equal to the Development’s attributable portion of the cost of the
authorized improvements associated with the Transportation Facility as determined by the City
Manager or designee, plus approved incidental costs normally occurring with a construction
project, but excluding costs associated with assessment district proceedings or financing.
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B. Whenever a Fee Credit is generated by constructing a Transportation Facility using assessment
district or special tax district financing, the credit shall only be applied to the Fee obligations
within that district.
3.54.180 Economic incentive credit.
The City Council may authorize the City to participate in the financing of Transportation Facilities
at the time of the appropriation of funds by City Council for the construction of an eligible
Transportation Facility; the City shall be eligible to receive a credit known hereafter as an
“Economic Incentive Credit.” Such Economic Incentive Credit may be applied to Fee obligations
for those Development Projects which the City Council determines, in its sole discretion, to be
beneficial to the City. The use of the Economic Incentive Credit may be subject to conditions
which shall be set forth in a written agreement between the Developer of the subject Development
Project and the City and approved by City Council.
The City shall only receive Economic Incentive Credit for Transportation Facility funding
provided in excess of the funding identified in the most recent Engineer’s Reports.
3.54.190 Fund loans.
A. Loans by the City. The City may loan funds to the Transportation Development Impact Fee
Fund to pay for Transportation Facilities should the Transportation Development Impact Fee
Fund have insufficient funds to cover the cost of planned Transportation Facilities. Said loans,
if granted, shall be approved by resolution of the City Council and shall carry interest rates
pursuant to City Council Policy 220-06 (Interfund Loan Policy) or such other Council Policies
as may be subsequently adopted.
B. Developer Loans. A Developer may loan funds to the City as outlined in CVMC 3.54.140 and
3.54.150. The City may repay said developer loans with interest, under the terms listed in
subsection (A) of this section.
3.54.200 Effective date.
This chapter shall become effective on October 25, 2018.
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September 25, 2018 File ID: 18-0260
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE 2014 COMMUNITY
AND MUNCIPAL GREENHOUSE GAS EMISSIONS INVENTORY REPORTS
RECOMMENDED ACTION
Council adopt the resolution.
SUMMARY
As part of the City’s ongoing greenhouse gas (GHG) monitoring effort, and as identified in the 2017 Climate
Action Plan (CAP), staff completed the municipal and community GHG emissions inventories for 2014,
which indicate that annual city-wide GHG levels have decreased by 5% compared to the 2005 baseline.
These reductions are even more significant after taking into account the 20% increase in community
population during this reporting period. This increase in population, coupled with the decrease in GHG
emissions, helped drive down per capita emission levels in Chula Vista to approximately 21% below 2005
levels. Emissions from municipal sources (i.e. operations, facilities, and vehicle fleet) in 2014 are
approximately 16% below 2012 levels and 55% below the 1990 baseline. To continue the City’s leadership
and progress, staff will continue to implement the 2017 CAP and City Operations Sustainability Plan. Staff
will convene a Climate Change Working Group (CCWG) meeting in the fourth quarter of 2018 to update
stakeholders on CAP implementation progress since CAP adoption and will hold quarterly CCWG meetings
in 2019 to discuss updating City actions and GHG reduction goals. Based on stakeholder feedback, staff will
be returning to City Council in the third quarter of 2019 with a more detailed update and roadmap forward
for future CAP activities.
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.
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BOARD/COMMISSION/COMMITTEE RECOMMENDATION
City Staff presented the 2014 Community and Municipal GHG inventories to the Sustainability Commission
(SSC) on September 10th, 2018. The SSC unanimously recommended that City Council adopt the report.
DISCUSSION
For over a decade, Chula Vista has been a nationally-recognized leader in implementing a CAP to address
the threat of climate change to the local community. The 2017 CAP includes 11 new climate “mitigation
strategies”, each with multiple individual actions, which are designed to reduce GHG emissions. These
actions, in combination with the 7 “mitigation” strategies” and 11 climate “adaptation” measures from
previous Climate Action planning documents, guide City staff in their Climate Action planning efforts. In
addition to addressing climate change concerns, these climate action measures offer numerous community
co-benefits such as utility savings, better air quality, reduced traffic congestion, local economic
development, and improved quality of life.
To help track changes to emission sources and assess current program progress or guide future policy
decisions, staff completed a GHG emissions inventory for Calendar Year 2014. The 2014 GHG Emissions
Inventory utilizes the U.S. Community Protocol, which was developed by ICLEI and approved by the State of
California Office of Planning & Research, to assist local jurisdictions in quantifying their community’s
climate impact. Emissions for 2005 and 2012 were recalculated from previously reported totals based on
guidance from San Diego Association of Governments (SANDAG) on how to appropriately account for
Vehicle Miles Traveled (VMT) trips that only have Chula Vista as either the origin or destination, but not
both. This change increased VMT totals and related emissions.
Community Inventory
The 2014 GHG Emissions Inventory indicates that Chula Vista’s annual city-wide GHG levels have
decreased by 14% below their 2012 peak to 1,249,503 metric tons of carbon dioxide equivalent (MT CO2e).
This reduction brings community-wide emissions 5% below their 2005 baseline but further reductions of
are needed to reach the City’s climate goal of reducing emission 15% below 2005 levels. These reductions
occurred during an expansion of the City’s housing stock and population which caused per capita emissions
to decrease by a 21% reduction from their 2005 baseline. The two largest sources of emissions were from
the transportation sector (59%) and residential energy use sector (18%). The 2014 GHG inventory
demonstrates significant reductions in community-wide GHG emissions. City staff will be monitoring
future inventories to ensure that GHG reductions were not caused by methodology changes in how some
source data was created by data providers.
Municipal Inventory
Greenhouse gas emissions from municipal sources (i.e. operations, facilities, and vehicle fleet) in 2014
totaled 14,076 metric tons of carbon dioxide equivalents (MT CO2e). This is a reduction of 16% below
2012 levels and 55% below the initial 1990 inventory. The two largest sources of emissions were from the
City’s vehicle fleet (41%) and energy consumption at facilities (36%). Staff will continue to implement the
City Operations Sustainability Plan and expect to complete the next municipal inventory for 2016 in early
2019.
2018-09-25 Agenda Packet Page 322
P a g e | 3
Next Steps
Due to data availability there was a delay in staff’s ability to create the 2014 GHG inventory. For future
community-wide GHG inventories, starting with 2016, staff will be working with SANDAG and the
University of San Diego’s Energy Policy Initiatives Center (EPIC) to leverage the GHG inventory guidance
that was created as part of the Regional Framework for Climate Action Planning stakeholder effort. We
anticipate the 2016 inventory to be completed early 2019 with future inventories being conducted every
other year depending on data availability. Staff will continue to implement the 2017 CAP and City
Operations Sustainability Plan. Currently the City is working to upgrade more than 18,000 indoor lights in
City buildings to LED and added 15 zero emission electric vehicles to the fleet with Measure P funds. The
lighting upgrade is estimated to save the City 1.5 Million kilowatt hours or enough electricity to serve 250
homes for a year. The City is also leveraging more than 13 million dollars of Clean Renewable Energy
Bonds (or “CREBs”) funding to install 2.6 megawatts (MW) of solar photovoltaic (PV) panels at 12 facilities
and energy storage at 2 facilities. The new solar panels will bring the City’s total installed capacity to 4.5
MW and the battery storage systems will better allow the City to utilize renewable energy after the sun has
gone down. Staff will convene a Climate Change Working Group (CCWG) meeting in the fourth quarter of
2018 to update stakeholders on CAP implementation progress since CAP adoption and will hold quarterly
CCWG meetings in 2019 to discuss updating City actions and GHG reduction goals. Based on stakeholder
feedback, staff will be returning to City Council in the third quarter of 2019 with a more detailed update
and roadmap forward for future CAP activities.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific
and consequently, the 500-foot rule found in California Code of Regulations Title 2, Section 18702.2(a)(11),
is not applicable to this decision for purposes of determining a disqualifying real property-related financial
conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy
Community, Strong and Secure Neighborhoods and a Connected Community. The update to the City’s
Climate Action Plan supports the Healthy Community goal. Specifically, the new program will allow the City
to develop new carbon-reducing strategies, which is a key objective under Initiative 3.2.2. - “Update and
implement the Climate Action Plan.”
CURRENT-YEAR FISCAL IMPACT
The development of the 2014 GHG Emissions Inventory is supported through existing departmental
budgets and external funding sources such as the SDG&E Local Government Partnership, thus there is
no new General Fund impact.
ONGOING FISCAL IMPACT
There are no ongoing fiscal impacts associated with the 2014GHG Emissions Inventory.
2018-09-25 Agenda Packet Page 323
P a g e | 4
ATTACHMENTS
Attachment 1 - 2014 COMMUNITY GREENHOUSE GAS EMISSIONS INVENTORY
Attachment 2 -2014 MUNICIPAL GREENHOUSE GAS EMISSIONS INVENTORY
Staff Contact: Cory Downs
2018-09-25 Agenda Packet Page 324
RESOLUTION NO. 2018- _________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING THE 2014 COMMUNITY
AND MUNCIPAL GREENHOUSE GAS EMISSIONS INVENTORY REPORTS
WHEREAS, Chula Vista has been a nationally-recognized leader in implementing a Climate Action Plan
(CAP) to address the threat of climate change to the local community; and
WHEREAS, the 2017 CAP includes 11 new climate “mitigation strategies,” each with multiple individual
actions, that address climate change concerns, while providing numerous community co-benefits such
as utility savings, better air quality, reduced traffic congestion, local economic development, and
improved quality of life; and
WHEREAS, to help further assess program progress, track changes to emission sources, and guide future
policy decisions, staff has completed a greenhouse gas (GHG) emissions inventory for Calendar Year
2014; and
WHEREAS, the 2014 GHG Emissions Inventory indicates that Chula Vista’s annual citywide GHG levels
have decreased to 1,249,503 metric tons of carbon equivalent (MT CO2e) while its housing stock and
population have expanded bringing per capita emissions 22% below their 2005 baseline; and
WHEREAS, it also indicates that GHG emissions from municipal sources are 55% lower than 1990 levels;
and
WHEREAS, Staff will continue to implement the 2017 CAP and City Operations Sustainability Plan and
anticipate conducting a Climate Change Working Group (CCWG) meeting in October 2018 to update
stakeholders on CAP implantation.
NOW, THEREFORE, the City Council of the City of Chula Vista does hereby resolve that it:
1. Accepts the 2014 Greenhouse Gas Emissions Inventory report, in the form presented, a copy of which
shall be kept on file in the office of the City Clerk; and
Presented by Approved as to form by
______________________________ ________________________
2018-09-25 Agenda Packet Page 325
City of Chula Vista 1 of 6
2014 Community GHG Emissions Inventory
2014 COMMUNITY GREENHOUSE GAS EMISSIONS INVENTORY
Cory Downs
Coleen Wisniewski
June 2018
SUMMARY
As part of Chula Vista’s climate action program and its commitment to reduce greenhouse gas
(GHG) or “carbon” emissions, the Economic Development Department’s Conservation Section
performs emission inventories to identify GHG sources and to help guide policy decisions. The
2014 GHG Emissions Inventory is the City’s latest evaluation of its progress in reaching its
emissions reduction goal and builds upon past inventory efforts. The inventory’s community
component uses ICLEI’s U.S. Community Protocol to ensure the City’s GHG inventories
comply with industry best practices. In an effort to ensure compliance with the protocol,
community GHG emissions for the transportation sector were recalculated for 2005 and 2012
based on new guidance on how to best utilize VMT data.
The 2014 inventory indicates that Chula Vista’s annual citywide GHG levels are 1,249,503
metric tons of carbon dioxide equivalent (MT CO2e). Compared to 2005, Chula Vista’s citywide
GHG emissions have decreased by 5% and per capita emissions are approximately 21% below
2005 levels and 18% below 2012 levels. Looking at the activity data behind the emissions, there
were mixed results with a decrease of 30% in the residential sector but a 16% increase in the
combined commercial and industrial energy consumption. But largely due to a cleaner electrical
grid, both sectors saw GHG emission reductions. Community transportation activity has also
decreased since 2012, with vehicle miles traveled (VMT) about 9% lower than in 2012 but still
11% higher than 2005, but largely due to cleaner transportation fuels GHG emissions are only
3% higher. In order to reach the current community emissions reduction goal of 15% below
2005 emission levels, the City will have to reduce its GHG emissions by more than 131,120 MT
CO2e or about 10%.
METHODOLOGY
Chula Vista has been a regional and national leader in climate action policies and programs
designed to reduce GHG, or “carbon” emissions. The City has participated in the United Nations
Framework Convention on Climate Change, ICLEI Cities for Climate Protection Campaign, the
Conference of Mayor’s Climate Protection Agreement and the America’s Pledge “We Are Still
In." Through this involvement, the City has committed itself to reducing its greenhouse gas
emissions.
The City’s 2014 GHG Emissions Inventory was compiled and calculated using the U.S.
Community Protocol (Version 1.0), which was created by ICLEI and supported by California
regulatory agencies to provide methodologies for local governments to better estimate their DRAFT2018-09-25 Agenda Packet Page 326
City of Chula Vista 2 of 6
2014 Community GHG Emissions Inventory
annual greenhouse gas emissions from community sources. In the protocol, the emissions from
five main parameters – building energy consumption, transportation, water (embedded energy),
wastewater, and solid waste – are evaluated. These parameters are based solely on “end use
activities” and their emissions are expressed as CO2 equivalent (or CO2e), which allows
greenhouse gases of different strengths to be added together.
SECTOR DATA
PROVIDER ACTIVITY DATA EMISSION FACTOR
Energy SDG&E
- Metered electricity & natural gas use
- Due to privacy concerns industrial and
commercial sectors needed to be
combined
- For 2014 data SDG&E used a new data
collection methodology than previous
years
- SDG&E-specific electricity emission
coefficients (CO2). Because the most
recent 3rd party verified emission factor is
from 2009, calculations were made by
EPIC (USD) to estimate the impacts of the
increased power from renewable sources
- EPIC CO2 emission factor provides a
CO2e output that includes CH4 & N2O
- Default natural gas emission coefficients
Transportation SANDAG
- Annual VMT data was derived from
average weekday VMT values for Chula
Vista. Trips that either started or ended in
Chula Vista but ended or started in
another jurisdiction were discounted by
50% while through trips were not included
- 2012 and 2014 VMT calculations were
preformed by different SANDAG models
and may effect the VMT results
- Default fuel (CO2/CH4/N2O / gallon)
emission coefficients
- CalTrans EmFac emission coefficients
(CO2e / mile) (community analysis only)
Solid Waste CalRecycle
- Solid waste disposal data for Chula Vista
residents and businesses at all California
landfills
- Default fugitive methane (CH4) emission
estimates (based on EPA WARM Model)
Wastewater City Staff
- Wastewater totals sent to Wastewater
Treatment Plants (WWTP) provided by
City staff
- EPIC emission factor based on Pt. Loma
WWTP
Water
(embeded
energy)
Otay &
Sweetwater
Authority
water
districts
- Amount of water used by all community
- California Energy Commission report
detailing embedded kWh per gallon of water
- Modified SDG&E emission factor (same
as used in energy sector)
To perform emission calculations, the City utilized the ICLEI Clear Path tool provided by the
Statewide Energy Efficiency Collaborative (SEEC) and an inventory tool created by University
of San Diego Energy Policy Initiatives Center (EPIC). Finally, emissions for 2005 and 2012
were recalculated based on new guidance from SANDAG on how to appropriately account for
VMT trips that only have Chula Vista as either the origin or destination but not both. This
change increased VMT totals and related emissions. 2005 emissions for the solid waste sector
Table 1: Data sources and emission factors used for community GHG emissions analyses. DRAFT2018-09-25 Agenda Packet Page 327
City of Chula Vista 3 of 6
2014 Community GHG Emissions Inventory
were also updated based on guidance from ICLEI and updates that were made to the ClearPath
software since 2005.
With technical assistance from the EPIC, City staff collected “activity data” from a number of
municipal and external data providers including SANDAG, SDG&E, CalRecycle, the Otay and
Sweetwater Authority Water Districts, and City Staff (Table 1). In most cases, the data providers
were able to offer aggregated data for calendar year 2014. Default emissions coefficients and
related assumptions were generally used for transportation and waste analyses. However, staff
included utility-specific electricity coefficients for energy sector emission analyses. SDG&E’s
CO2 emission factor has not been third-party verified and updated since 2009, yet the utility has
significantly increased its percentage of renewable electricity (from 9% to 43%) over the past
few years. To help account for this increased renewable energy use, EPIC created a modified
CO2e emission factor that also incorporates CH4 and N2O emissions. This emission factor was
used in the 2012 and 2014 community inventories. EPIC has also worked with the City of San
Diego to calculate GHG emissions factors related to wastewater from Chula Vista residents and
business that is sent to San Diego for treatment.
RESULTS
2005 2012 2014
%
Change
(2014 vs.
2005)
%
Change
(2014 vs.
2012)
2005 2012 2014
%
Change
(2014 vs.
2005)
%
Change
(2014 vs.
2012)
217,543 249,382 260,765 20% 5%6.0 5.8 4.8 -21% -18%
73,115 79,255 81,267 11% 3%18.0 18.4 15.4 -15% -16%
33,024 33,024 33,024 0% 0%Per Acre 39.8 44.1 37.8 -5% -14%
1,429,425,787 1,746,331,092 1,585,833,977 11% -9%717,256 851,386 740,584 3% -13%
Residential 3,416,724 3,642,556 2,396,525 -30% -34%Residential 247,559 266,438 221,923 -10% -17%
Commercial*
*2,305,220 2,586,867 Commercial 182,951 204,818
Industrial**485,504 327,471 Industrial 41,670 34,055
Total 6,207,448 6,556,894 5,635,855 -9% -14%Total 472,180 505,311 403,038 -15% -20%
217,459 193,666 257,144 18% 33%60,780 50,717 67,245 11% 33%
12,666 10,403 8,034 -37% -23%50,062 40,819 30,810 -38% -25%
15,457 7,962 7,826 -49% -2%
1,315,734 1,456,195 1,249,503 -5% -14%
1,118,374 ---- ----
131,129 ---- ----
Total GHG Emissions
(MTCO2e)
15% Below 2005
Reduction Goal
Reductions Needed To
Reach Goal
Solid Waste (Tons)
Waste Water***
(MTCO2e)
Annual Greenhouse Gas (GHG) Emissions (Metric Tons CO2e)
Population
Housing Units
Land Area (Acres)
Annual Consumption (Metric Units)
Per Housing Unit
* All GHG emissions are reported in CO2 Equivalent (CO2e) which allows emissions of different
strengths to be added together. For example, one metric ton of methane emissions is
equivalent to 21 metric tons of carbon dioxide (or CO2e) in global warming potential.
**Commerical and Industrial energy usage had to be merged in 2014 due to privacy concerns
*** Due to better data avlability methodology for calculating wastewater emission were updated
in 2012.
Total GHG Emissions
(MTCO2e)
Annual Vehicle Miles
Traveled (VMT)
Solid Waste (MTCO2e)
Energy
Use
(MMBtu)
Energy Use
(MTCO2e)
Transportation
(MTCO2e)1
3,239,330
Per Capita
181,115 -19% -24%16% 11%
Potable Water (million
gallons)
Potable Water
(MTCO2e)
Table 2: Demographics, activity data and greenhouse gas emissions for 2005, 2012 and 2014 DRAFT2018-09-25 Agenda Packet Page 328
City of Chula Vista 4 of 6
2014 Community GHG Emissions Inventory
In 2014, community GHG emissions from Chula Vista totaled 1,249,504 MT CO2e (Table 2,
Figure 1). The sector with the greatest amount of emissions (59% of total) was transportation or
mobile sources. The residential energy use sector was the second highest source producing a
quarter (18%) of total community emissions, followed by the combined commercial and
industrial energy use (14%) and solid waste (5%) sectors. Compared to 2005 and 2012, total
citywide emissions in 2014 were 5% and 14% lower, respectively (Figure 1). 2014 per capita
emissions are approximately 21% below 2005 levels and 18% below 2005 levels. Emissions
from all energy sectors have decreased by 15% or 69,142 MT CO2e in total since 2005, while
transportation-based emissions are estimated to have increased 3% or 23,329 MT CO2e. The
solid waste sector had emissions increase 11% since the 2005 baseline and 33% since 2012.
Emissions from water (embedded energy) have decreased 38% since 2005 while emissions from
wastewater treatment have decreased 2% since 2012.
Figure 1: Total GHG emissions from community sources (by sector) in 2005, 2012, and
2014. The yellow dashed line represents the City’s carbon reduction goal DRAFT2018-09-25 Agenda Packet Page 329
City of Chula Vista 5 of 6
2014 Community GHG Emissions Inventory
DISCUSSION
Community Emissions
As mentioned in the 2012 inventory, due to data availability and updated methodologies, the City
has updated its baseline from 1990 to 2005. Unlike previous community inventories, this year
saw a total GHG emission reduction of 14% from the most recent inventory (2012) and a 5%
reduction from the baseline (2005). These reductions occurred in spite of the City’s population
growth of 5% since 2012 and 20% since 2005. Factoring that growth into emissions and looking
at per capita GHG emissions this illustrates reductions of 18% since 2012 and 21% since 2005.
While these reductions are good to see and significant, continued reductions will be needed in
multiple inventories in order to reach our short and long-term goals. One factor that affected the
2012 emissions totals included changes in modeling and data collection that are used to estimate
activity data. In the transportation sector, SANDAG updated their traffic models between the
2012 and 2014 inventories and this can affect comparisons between those two years. In the
energy sector, SDG&E changed how they provided energy usage data to ensure the privacy of
their users. The City worked to facilitate data sharing under a Non-Disclosure Agreement but
the change may still impact data results. For both sectors, City staff will be carefully monitoring
the results of the next inventory (2016) to see if the reduction trends continue.
While it is difficult to reduce transportation-related emissions due to long-standing land use form
and commuting patterns, there are local, state, and federal programs that are beginning to
actively target this sector by reducing the carbon-intensity of vehicle fuels, improving fuel
efficiency, and promoting alternative transportation options. The City itself continues to
integrate “smart growth” design principles into its development review and approval process and
to facilitate the installation of alternative fuel infrastructure throughout the community, including
public electric vehicle chargers at 7 City facilities, which can further help address these
emissions.
When looking at the second largest sector, building energy use, Chula Vista has numerous
programs and policies to expand energy efficiency and renewable energy opportunities. These
include the Property Assessed Clean Energy (or PACE) programs which started in late 2014 but
have since been used to finance almost 50 million dollars in energy efficiency, renewable energy,
or water efficiency in Chula Vista. City staff also continued to promote energy conservation
through the Local Government Partnership with SDG&E. Under this partnership, the Free
Resource & Energy Business Evaluation (FREBE) program has successfully helped over 1,000
local businesses and 135 Home Upgrade Carbon Downgrade program participants identify
energy-saving improvements at their buildings and homes.
NEXT STEPS
With the adoption of the City’s most recent Climate Action Plan in late 2017, City staff are
working to implement the 11 GHG reduction strategies. Some of the implementation actions
being taken are the adoption of increased efficiency levels for commercial outdoor lighting,
working to adopt an ordinance that would require solar PV on new construction, installing more
than 120 electric vehicle chargers for City employees and fleets and adopting the City’s Water
Stewardship plan. Staff are also working with SANDAG and EPIC to create a Regional GHG
Framework that will guide future GHG inventories and help ensure consistency across the DRAFT2018-09-25 Agenda Packet Page 330
City of Chula Vista 6 of 6
2014 Community GHG Emissions Inventory
region. Additionally, in an effort to increase inventory consistency and decrease the amount of
required staff time, EPIC will be undertaking efforts to conduct GHG inventories for a number of
jurisdictions, including Chula Vista, starting with the 2016 inventory. This effort will help
ensure a more timely and rigorous inventory while minimizing the staff time required. DRAFT2018-09-25 Agenda Packet Page 331
City of Chula Vista 1 of 6
2014 GHG Emissions Inventory
2014 MUNICIPAL GREENHOUSE GAS EMISSIONS INVENTORY
Brenden Seki
Cory Downs
December 2016
SUMMARY
The City of Chula Vista has committed to reducing greenhouse gas (GHG), or “carbon,”
emissions from municipal operations, to lead by example, and demonstrate that businesses can
reduce emissions while not sacrificing the quality of services they provide. As part of the City’s
climate action program, the Department of Economic Development’s Conservation Section
completes carbon emissions inventories to identify GHG sources and to help guide policy
decisions. The 2014 Municipal GHG Emissions Inventory utilizes the ICLEI Local Government
Operations Protocol and serves as the City’s latest assessment of all past inventory efforts and its
progress in reaching its municipal emissions reduction goals for City operations.
The 2014 inventory shows that Chula Vista’s municipal GHG emissions equal 14,076 metric
tons of carbon dioxide equivalents (MT CO2e). This represents a 16% decrease in total
emissions since 2012 (16,821 MT CO2e) and a 55% decrease when compared to the initial 1990
inventory. GHG emissions from the municipal external lighting have declined every year from
the initial report, with a 39% decrease since 2012 due in part to streetlight LED retrofits. The
City’s vehicle fleet, building energy, and solid waste emissions have similarly lowered,
decreasing 15%, 16%, and 14% respectively, from 2012. The emissions associated with the
municipal sewage have increased the past two reporting years; however, it is a very small
amount (less than 1%) of the City’s overall carbon emissions. Lastly, as water usage has
increased, emissions from the embedded energy associated with that water have also increased
since 2012.
METHODOLOGY
Chula Vista has been at the forefront of climate action policies and programs designed to reduce
greenhouse gas (GHG) or “carbon” emissions. As a municipality, the City utilized the industry
adopted GHG inventory methodologies and has independently reported its 2008, 2009, 2010, and
2012 municipal emissions to the Climate Registry, North America’s leading voluntary
greenhouse gas reporting system, with the purpose of archiving the City’s actions taken to reduce
GHG emissions. Additionally, Chula Vista has participated in the United Nation’s Framework
Convention on Climate Change, the Conference of Mayor’s Climate Protection Agreement, the
Department of Energy’s Better Buildings program and the steering committee for the California
Statewide Energy Efficiency Collaborative (SEEC) ClearPath tool. The City has committed
itself to reducing its carbon footprint through these past actions and will continue to do so with
future decision making. DRAFT2018-09-25 Agenda Packet Page 332
City of Chula Vista 2 of 6
2014 GHG Emissions Inventory
PARAMETER DATA
PROVIDER ACTIVITY DATA EMISSION FACTOR
Other Recreation
Dept.• pH canisters' shipment invoices • Default fugitive carbon dioxide (CO 2)
emissions coefficients
• Amount of water used by government
operations
SDG&E • Energy used to pump wastewater to
WWTPs
• Modified SDG&E emission factor (same
as used in energy sector)Wastewater
Water
(embeded
energy)
Otay &
Sweetwater
Authority
water
districts
• California Energy Commission report
detailing embedded kWh per gallon of water
• Modified SDG&E emission factor (same
as used in energy sector)
• Metered electricity & natural gas use
• Fuel shipment invoices
• Energy consumption was categorized by
buildings, outdoor lighting, and wastewater
• Fuel consumption totals include transit
and equipment use
Public
Works Dept.
Energy SDG&E
• SDG&E-specific electricity emission
coefficients (CO2). Because the most
recent 3rd party verified emission factor is
from 2009, calculations were made by
EPIC (USD) to estimate the impacts of the
increased power from renewable sources
• EPIC CO2 emission factor provides a
CO2e output that includes CH4 & N2O
• Default natural gas emission coefficients
Transportation • Default fuel (CO2/CH4/N2O per gallon)
emission coefficients
Solid Waste
• Default fugitive methane (CH4) emission
estimates (based on ICLEI's ClearPath)Republic
Services
• Solid waste disposal data includes trash
hauled by Republic Services and by City
staff
The City’s 2014 Municipal GHG Inventory was collected and calculated using the Local
Government Operations Protocol (LGOP, Version 1.1) and the SEEC ClearPath tool, which were
created by ICLEI with support from California regulatory agencies to provide methodologies for
local governments to better estimate their annual greenhouse gas emissions from
municipaloperations. These ICLEI protocols evaluate emissions from five primary parameters –
building energy consumption, transportation, water (embedded energy), wastewater, and solid
waste. These parameters are mainly based on “end use activities” and the emissions are
expressed in terms of carbon dioxide equivalents (CO2e), which allows greenhouse gases of
different strengths, or global warming potentials, to be evaluated together. When possible, past
emissions for 1990, 2005, and 2012 were recalculated using updated emissions factors or data in
order to provide a more accurate comparison to the latest 2014 emission levels. Due to a lack of
available data, 1990 and 2005 inventories do not include emissions from the water sector.
Table 1: Data sources and emission factors used for community and municipal emissions analyses. DRAFT2018-09-25 Agenda Packet Page 333
City of Chula Vista 3 of 6
2014 GHG Emissions Inventory
City staff collected “activity data” from a number of municipal and external data providers
including multiple Chula Vista Departments, SDG&E, Otay and Sweetwater Authority Water
Districts, and Republic Services (Table 1). Staff was able to separate potable water emissions
from recycled water emissions and utilized energy factors from the California Energy
Commission to quantify the different amounts of energy embedded in each. In most cases, the
data providers were able to offer aggregated empirical data for calendar year 2014; however, if
2014 data was unavailable for minor sources the most recent data available was used as a proxy.
Staff included utility-specific electricity coefficients for CO2 emissions in the energy analyses
and default emissions coefficients and related assumptions were generally used for transportation
and waste analyses. SDG&E’s emission factor has not been third-party verified and reported
since 2009, but the utility has significantly increased its percentage of renewable electricity, to
over 33%, over the past few years. To help account for this increased renewable energy supply,
EPIC at the University of San Diego created a modified CO2e emission factor that accounts for
CO2, CH4, and N2O, which the City incorporated into its 2014 municipal inventory.
Additionally, through working with EPIC we learned that the 2005 SDG&E emission factor, as
reported in the LGOP, used statewide defaults, which contributed to an artificially low emission
factor. For this reason, the 2006 SDG&E emission factor was used as a proxy emission factor
for 2005.
RESULTS
Chula Vista’s 2014 municipal GHG emissions were 14,076 MT CO2e (Table 2). The majority of
emissions came from the City’s vehicle fleet, accounting for 41% of total emissions. Following
the vehicle fleet, the next highest emission sectors were building energy use (26%) and solid-
waste related emissions (14%). External energy use (traffic signals and street lights) and the
energy associated with potable and recycled water usage each accounted for about 10% of the
total emissions each. Emissions from wastewater pumping were minor, making up less than 1%.
Compared to 1990 and 2012, total municipal operation emission levels were 55% and 16%
lower, respectively (Table 2). The energy use for external lighting continues to be the City’s
largest decreasing emissions sector, which has decreased by 18,890 MT CO2e (93%) since 1990
and 39% since 2012. Additionally, only the water (wastewater and potable/recycled water)
sectors increased, 14% (3 MT CO2e) and 10% (117 MT CO2e) respectively, while all other
sectors had lower emission in 2014 compared to 2012. The City reached its original GHG
emission reduction goal for municipal operations in 2005 and has now surpassed the primary
goal by over 40%.
DRAFT2018-09-25 Agenda Packet Page 334
City of Chula Vista 4 of 6
2014 GHG Emissions Inventory
1990 2005 2012 2014
% Change
(2014 vs.
1990)
% Change
(2014 vs.
2012)
1990 2005 2012 2014
% Change
(2014 vs.
1990)
% Change
(2014 vs.
2012)
866 1,198 863 875 1.0% 1.4%35.9 16.6 19.5 16.1 -55.2% -17.5%
478,344 1,102,823 897,603 771,410 61.3% -14.1% 4,655 9,282 6,802 5,802 24.6% -14.7%
Buildings 35,527 70,790 54,765 46,710 31.5% -14.7%Buildings 3,728 5,856 4,321 3,646 -2.2% -15.6%
External
Lights 147,100 27,780 21,764 15,484 -89.5% -28.9%
External
Lights 20,260 2,896 2,247 1,370 -93.2% -39.0%
Sewage 7,122 257 215 240 -96.6% 11.6%Sewage 981 19 22 25 -97.5% 13.6%
Total 189,749 98,827 76,744 62,434 -67.1% -18.6%Total 24,969 8,771 6,590 5,041 -79.8% -23.5%
5,400 6,603 7,942 6,859 27.0% -13.6%1,471 1,830 2,296 1,983 34.8% -13.6%
NA NA 260 298 NA 14.6%
NA NA 342 409 NA 19.6%
31,095 19,883 16,821 14,076 -54.7% -16.3%
----24,876
----0
10.3%
Potable/Recycled
Water (embeded
energy)Recycled Water (million
gallons)
NA NA 1,133 1,250
Table 2: MUNICIPAL ANALYSIS - 1990, 2005, 2012, and 2014
*Goal Obtained
Annual Consumption (Metric Units) Annual Greenhouse Gas (GHG) Emissions (Metric Tons CO2e)
Solid Waste (Tons)
Per Employee
Vehicle Fleet
Total GHG Emissions
NA
20% GHG Reduction Goal
Reductions Needed To
Reach Goal
Solid Waste
Energy
Use
(MMBtu)
Energy
Use
Employees
Vehicle Fleet Fuel Use
(Gallons or Equivalent)
Potable Water (million
gallons)
* All GHG emissions are reported in CO2 Equivalent (CO2e)
DISCUSSION
The 2014 inventory results highlight Chula Vista’s continued success in reducing GHG
emissions associated with its municipal operations. This significant and sustained reduction is
largely due to the continued decrease in emissions from external lighting energy, building
energy, and fleet sectors, which each saw reductions between 600 and 1,000 MT CO2e since the
last inventory. The external lighting sector saw the largest percent reduction by lowering usage
93% since 1990. Emissions from building energy use were at the lowest they have been since
the original inventory in 1990 (2% decrease) and 38% lower than the highest reported levels in
2005 (5,856 MT CO2e). These trends are due in large part to the lasting energy upgrade and
management efforts made throughout the City. Beginning in the mid-1990s, traffic signals were
retrofitted with energy-efficient LED technologies, and more recently, most streetlights were
converted to LED in 2013. In the building sector, phase II of the solar photovoltaic (PV)
systems was accomplished, bringing the total amount of PV installed on City facilities to 1.7
megawatts (MW) at 14 facilities. Combined with the streetlight retrofits, these two projects have
saved the City enough energy to offset the annual energy use of more than 500 homes.
DRAFT2018-09-25 Agenda Packet Page 335
City of Chula Vista 5 of 6
2014 GHG Emissions Inventory
Within the municipal vehicle fleet sector, fuel usage has decreased by 14% (126,193 gallons of
gasoline equivalents) since 2012 with emissions decreasing by 15% (1,000 MT CO2e). As a
result of the City’s Clean Fleet Policy, which prioritizes alternative fuels and hybrid technologies
when selecting new vehicles, 31% of the municipal fleet has been converted to operate on
electricity, propane, compressed natural gas, or biodiesel. Lastly, the City leverages its
“purchasing power” to promote cleaner fuel sources through its contracted fleets, including the
City’s trash hauler and transit company which have both completed 100% shifts to alternative
fuel sources and street sweepers and tow truck services which are still working on converting to
alternative fuels.
NEXT STEPS
Chula Vista’s municipal climate actions are guided by the City’s Climate Action Plan and
Sustainable Operations Plan. The operations plan outlines goals and strategies for seven key
sustainability areas with the objective of integrating innovative sustainable practices throughout
the City’s procedures and facilities. This outline includes actions related to energy, water, and
transportation upgrades, such as an indoor LED lighting upgrade at multiple City facilities,
replacing turf with drought tolerant landscaping, and working with SDG&E to increase the
City’s electric vehicle charging infrastructure. To build upon past experiences and ensure that
City buildings are operated in a holistic and sustainable way, the City has begun to seek LEED
Building Operations and Maintenance certification for one of our existing buildings. By striving
for this third party certification, City staff is learning about, and implementing where needed, a
Figure 1: Total GHG emissions from municipal sources (by sector) in 1990, 2005, 2012, and 2014.
The dashed line represents the City’s carbon reduction goal. Due to a lack of available data,
emissions from the water sector are not included in the 1990 and 2005 inventories. DRAFT2018-09-25 Agenda Packet Page 336
City of Chula Vista 6 of 6
2014 GHG Emissions Inventory
comprehensive set of policies that help reduce emissions and provide numerous co-benefits
including improved indoor air quality, promoting healthy commuting options, and ensuring
comfortable and productive work spaces.
The City has also initiated a Smart Cities program to look at how it can incorporate new
technologies to better track and manage various aspects of City operations including
environmental impacts. Some proposed technologies involve smart streetlights that can dim and
reduce energy usage when not needed, electronic signage that can provide environmental
focused marketing while also generating revenue and building sensors and networks that better
allow the City to manage resources including energy, water, and waste. Through implementation
of The City Operations Sustainability Plan, the City strives to lead by example, thereby helping
to ensure clean air, water, and land for the entire community.
DRAFT2018-09-25 Agenda Packet Page 337
P a g e | 1
September 25, 2018 File ID: 18-0325
TITLE
PRESENTATION OF FISCAL YEAR 2020 – 2029 GENERAL FUND LONG-TERM FINANCIAL PLAN
RECOMMENDED ACTION
Council accept the report.
SUMMARY
The City of Chula Vista Fiscal Year 2020 – 2029 General Fund Long-Term Financial Plan (LTFP) serves as a
long-range fiscal planning tool to identify financial trends, identify projected budgetary surpluses or
shortfalls, and encourage discussion to proactively address the City’s long-range needs. The goal of the
LTFP is to assess the City’s ability over the term of the plan to: maintain current or expand service levels;
preserve the City’s long-term fiscal health; and strategically increase the City’s reserve funds to meet the
City’s reserve policies thresholds. The LTFP will serve as a guideline for the development of the Fiscal Year
(FY) 2020 General Fund budget. The LTFP is only applicable for the City’s General Fund. Information
related to the City’s non-General Fund funds can be found on the City’s website within the FY 2019 Adopted
Budget (www. chulavista.gov).
ENVIRONMENTAL REVIEW
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act
State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is
required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The LTFP focuses on baseline revenues and expenditures that are essential for the City to achieve the City’s
strategic goals over the next ten years. These goals include:
• Providing the highest level of municipal services based upon available resources
• Maintaining safe and appealing neighborhoods
• Providing funding for City infrastructure
• Continuing to expand the City’s economic development and financial base
2018-09-25 Agenda Packet Page 338
P a g e | 2
It is important to stress that the LTFP is not a budget. It does not make expenditure decisions but rather
highlights the need to prioritize the allocation of City resources to ensure the continuation of core City
services. The purpose of the plan is to provide the City Council, key stakeholders, and the public an
overview of the City’s fiscal health based on various financial and service level assumptions over the next
ten years; and allow for the discussion of necessary steps to be initiated during the development and
implementation of future budgets. The LTFP is intended to look beyond the annual budget cycle and serve
as a planning tool to bring a long-term perspective to the budget process. Should projected expenditures
exceed projected revenues in any given year; the City Manager will need to identify steps to mitigate the
shortfalls prior to presenting a balanced budget to the City Council for consideration during the annual
budget development process.
SUMMARY OF FINANCIAL PROJECTIONS
Based on projections from the LTFP, overall General Fund revenues are anticipated to increase from
FY 2020 to FY 2026. However, General Fund revenues are anticipated to decrease in FY 2027 and 2028
from prior years due to the scheduled conclusion of the citizen-approved Measure P Sales Tax. FY 2027
includes a partial year of Measure P revenues and FY 2028 is the first full year of excluding Measure P
revenues from the General Fund revenue totals. The projected revenues include a partial year of revenues
from the newly approved Measure A Sales tax in FY 2019 and a full year of revenue beginning in FY 2020.
Revenues from Measure A are continued throughout the term of the LTFP. General Fund revenues resume
the trend of slight increases from the prior year in FY 2029.
Based on baseline projections for current service levels and the inclusion of the services related to the
Measure A Sales tax measure, growth in expenditures is anticipated to outpace the growth in revenues for
each year of the LTFP period. This long-term structural shortfall generates deficits each year of the LTFP.
The overall General Fund deficits are projected to increase from approximately $5.5 million in FY 2020 to
$18.6 million in FY 2029 (last year of LTFP period). The addition of new positions or programs, above and
beyond current service levels, is shown in the High Priority Program expenditure category on the following
table. The costs associated with these priority additions increase the deficit to $7.1 million in FY 2020 to
$31.8 million in FY 2029.
The following table presents the financial forecast for the General Fund for FY 2020 through FY 2029.
Additional information related to revenues and expenditures is provided within the following report.
2018-09-25 Agenda Packet Page 339
P a g e | 3
It should be noted the projections within the LTFP do not incorporate any economic downturn during the
LTFP period. Any economic downturn, depending upon the breath and duration of the downturn, would
negatively impact the projections within the LTFP.
LTFP OUTLINE (ATTACHMENT 1)
The LTFP includes a brief overview of the current economic environment and information on potential
factors that could impact the City’s fiscal position in the near-term and long-term.
Following the economic updates, information will be provided on the major revenue/expenditure
categories shown within the LTFP. This information will provide brief descriptions of the
revenues/expenditures, and highlight certain factors which could impact the revenues/expenditure
projections.
Financial projections for the term of the LTFP will be presented following the highlighted revenues and
expenditures. Significant results of the financial projections will be noted following the financial table.
Following the financial projections, the LTFP presents potential mitigation actions for discussion. No
Long-Term Financial Plan FY 2020 - 2029
Proposed Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Revenue Projections (millions)
Property Taxes 35.30$ 36.36$ 37.45$ 38.57$ 39.72$ 40.91$ 42.13$ 43.39$ 44.69$ 46.03$ 47.40$
Sales Tax 33.70$ 34.04$ 34.38$ 34.72$ 35.07$ 35.42$ 35.77$ 36.13$ 36.49$ 36.86$ 37.22$
Measure P Sales Tax 18.09$ 18.27$ 18.45$ 18.63$ 18.82$ 19.01$ 19.20$ 19.39$ 14.69$ -$ -$
Measure A Sales Tax1 8.00$ 16.40$ 16.73$ 17.06$ 17.40$ 17.75$ 18.11$ 18.47$ 18.84$ 19.22$ 19.60$
Franchise Fees 11.69$ 11.93$ 12.16$ 12.41$ 12.66$ 12.91$ 13.17$ 13.43$ 13.70$ 13.97$ 14.25$
Utility Users Taxes 5.61$ 5.63$ 5.66$ 5.69$ 5.72$ 5.75$ 5.78$ 5.81$ 5.83$ 5.86$ 5.89$
Transient Occupancy Taxes 4.10$ 4.19$ 4.27$ 4.35$ 4.44$ 4.53$ 4.62$ 4.71$ 4.81$ 4.90$ 5.00$
Motor Vehicle License Fees 21.89$ 22.54$ 23.22$ 23.92$ 24.63$ 25.37$ 26.13$ 26.92$ 27.73$ 28.56$ 29.41$
MAJOR DISCRETIONARY REVENUES 138.37$ 149.35$ 152.31$ 155.35$ 158.45$ 161.64$ 164.90$ 168.24$ 166.77$ 155.39$ 158.78$
OTHER REVENUES2 44.30$ 43.28$ 43.54$ 43.37$ 43.65$ 43.92$ 44.20$ 44.48$ 44.77$ 45.06$ 45.35$
NEW DEVELOPMENT REVENUES3 -$ 2.97$ 4.08$ 5.07$ 6.05$ 7.02$ 7.95$ 8.94$ 9.48$ 9.60$ 9.71$
TOTAL REVENUES 182.68$ 195.59$ 199.94$ 203.78$ 208.15$ 212.58$ 217.05$ 221.66$ 221.02$ 210.04$ 213.84$
Year-over-Year Change 7.07% 2.22% 1.92% 2.14% 2.13% 2.10% 2.12% -0.29% -4.97% 1.81%
Expenditure Projections (millions)
Personnel Services 88.01$ 92.42$ 94.17$ 95.97$ 97.80$ 99.66$ 101.57$ 103.51$ 105.50$ 107.52$ 109.58$
Retirement - PERS 27.59$ 31.24$ 34.44$ 37.12$ 39.43$ 40.95$ 42.69$ 44.44$ 46.25$ 48.15$ 50.13$
Health Insurance 13.53$ 12.42$ 12.46$ 13.02$ 13.60$ 14.20$ 14.84$ 15.50$ 16.19$ 16.91$ 17.67$
Salary Savings (On Going)(0.90)$ (1.75)$ (1.77)$ (1.79)$ (1.81)$ (1.83)$ (1.85)$ (1.87)$ (1.89)$ (1.91)$ (1.93)$
PERSONNEL SERVICES EXPENDITURES 128.23$ 134.32$ 139.31$ 144.31$ 149.01$ 152.98$ 157.25$ 161.58$ 166.05$ 170.67$ 175.45$
OTHER EXPENDITURES4 54.45$ 64.75$ 65.78$ 67.68$ 66.94$ 68.30$ 69.19$ 70.27$ 66.47$ 53.05$ 53.37$
NEW DEVELOPMENT EXPENDITURES5 -$ 2.01$ 2.14$ 2.88$ 2.99$ 3.11$ 3.23$ 3.34$ 3.47$ 3.57$ 3.62$
TOTAL EXPENDITURES 182.68$ 201.08$ 207.23$ 214.87$ 218.94$ 224.38$ 229.67$ 235.19$ 235.99$ 227.29$ 232.44$
Year-over-Year Change 10.07% 3.06% 3.68% 1.90% 2.49% 2.36% 2.40% 0.34% -3.68% 2.26%
TOTAL GENERAL FUND SURPLUS/(DEFICIT)(0.00)$ (5.49)$ (7.30)$ (11.09)$ (10.79)$ (11.80)$ (12.62)$ (13.53)$ (14.97)$ (17.25)$ (18.60)$
SURPLUS/(DEFICIT) AS % OF BUDGET -2.73% -3.52% -5.16% -4.93% -5.26% -5.49% -5.75% -6.34% -7.59% -8.00%
HIGH PRIORITY PROGRAMS
Peace Officer Funding2 -$ 1.63$ 2.58$ 3.62$ 4.75$ 5.96$ 7.28$ 8.67$ 10.19$ 11.68$ 13.18$
TOTAL GENERAL FUND SURPLUS/(DEFICIT)(0.00)$ (7.12)$ (9.87)$ (14.70)$ (15.54)$ (17.75)$ (19.90)$ (22.20)$ (25.15)$ (28.93)$ (31.78)$
SURPLUS/(DEFICIT) AS % OF BUDGET -3.54% -4.76% -6.84% -7.10% -7.91% -8.66% -9.44% -10.66% -12.73% -13.67%
(1) Any revenues in excess of actual expenditures in any year will be carried forward to future years as an encumbrance and continue to be dedicated to Measure A obligations.
(5) New Development Expenditures related to new Millenia parks anticipated to come online during LTFP term.
Description
(3) New Development Revenues reflect increases in various existing revenue categories related to new development within the City.
(2) Other Revenues line item is total of the following budget revenue categories: Development Revenue, Licenses and Permits, Fines, Forfeitures & Penalties, Use of Money and Property, Other Local Taxes,
Police Grants, Other Agency Revenue, Charges for Services, Interfund Reimbursements, Other Revenues - Miscellaneous, and Transfers from Other Funds.
(4) Other Expenditures line item is the total of the following expenditure categories: Supplies and Services, Utilities, Other Expenses, Equipment, Internal Services, and Transfers/Debt Service.
(6) Figure represents City's goal of adding five additional peace officer positions each year to address anticipated growth in City's population. Positions not incorporated in the Intended Public Safety
Expenditure Plan for Measure A Sale Tax Measure.
2018-09-25 Agenda Packet Page 340
P a g e | 4
single, specific action is identified as a solution to resolving the City’s projected shortfalls. Based upon
discussion and input from the City Council and the public, City staff can develop additional information
related to the identified actions for consideration.
The final section of this report is information related to the citizen-approved Measure A Sales Tax and the
anticipated expenditure plan for this revenue source. Information related to the development of the
measure, the anticipated expenditure plan (the Intended Public Safety Expenditure Plan), and the
preliminary cash flows for the collection and expenditure of the tax revenue is provided. The preliminary
revenue and expenditure projections will be reviewed and updated upon discussion with the Measure A
Citizen Oversight Committee. The preliminary financial projections have been incorporated into the LTFP.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific
and consequently, the 500-foot rule found in California Code of Regulations Title 2, section 18702.2(a)(11),
is not applicable to this decision for purposes of determining a disqualifying real property-related financial
conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council member, of any other fact
that may constitute a basis for a decision maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy
Community, Strong and Secure Neighborhoods and a Connected Community. This action supports the
Operational Excellence goal by communicating the City’s projected financial position for the current fiscal
year in an open and transparent manner. This transparency supports City Initiative 1.3.1. - “Foster public
trust through an open and ethical government.”
CURRENT-YEAR FISCAL IMPACT
There is no current year fiscal impact related to this action for the General Fund.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact related to this action for the General Fund.
ATTACHMENTS
1.Fiscal Year 2020 –2029 General Fund Long-term Financial Plan
Staff Contact: David Bilby, Finance Department
2018-09-25 Agenda Packet Page 341
City of Chula Vista
GENERAL FUND
LONG-TERM FINANCIAL PLAN
FY 2020 - 2029
2018-09-25 Agenda Packet Page 342
FY2019 City of Chula VistaGeneral Fund Long-Term Financial Plan
1
EXECUTIVE SUMMARY
The City of Chula Vista Fiscal Year 2020 – 2029 General Fund Long-Term Financial Plan (LTFP)
serves as a long-range fiscal planning tool to identify financial trends, identify projected budgetary
surpluses or shortfalls, and encourage discussion to proactively address the City’s long-range
needs. The goal of the LTFP is to assess the City’s ability over the term of the plan to: maintain
current or expand service levels; preserve the City’s long-term fiscal health; and strategically
increase the City’s reserve funds to meet the City’s reserve policies thresholds. The LTFP will serve
as a guideline for the development of the Fiscal Year (FY) 2020 General Fund budget. The LTFP is
only applicable for the City’s General Fund. Information related to the City’s non-General Fund
funds can be found on the City’s website within the FY 2019 Adopted Budget (www.
chulavista.gov).
The LTFP focuses on baseline revenues and expenditures that are essential for the City to achieve
the City’s strategic goals over the next ten years.1 These goals include:
Providing the highest level of municipal services based upon available resources
Maintaining safe and appealing neighborhoods
Providing funding for City infrastructure
Continuing to expand the City’s economic development and financial base
It is important to stress that the LTFP is not a budget. It does not make expenditure decisions but
rather highlights the need to prioritize the allocation of City resources to ensure the continuation
of core City services. The purpose of the plan is to provide the City Council, key stakeholders, and
the public an overview of the City’s fiscal health based on various financial and service level
assumptions over the next ten years; and allow for the discussion of necessary steps to be initiated
during the development and implementation of future budgets. The LTFP is intended to look
beyond the annual budget cycle and serve as a planning tool to bring a long-term perspective to
the budget process. Should projected expenditures exceed projected revenues in any given year;
the City Manager will need to identify steps to mitigate the shortfalls prior to presenting a
balanced budget to the City Council for consideration during the annual budget development
process.
SUMMARY OF FINANCIAL PROJECTIONS
Based on projections from the LTFP, overall General Fund revenues are anticipated to increase
from FY 2020 to FY 2026. However, General Fund revenues are anticipated to decrease in
FY 2027 and FY 2028 from prior years due to the scheduled conclusion of the citizen-approved
1 The City’s Strategic Plan can be found on the City’s website
(https://www.chulavista.gov/departments/finance/budget-information).
2018-09-25 Agenda Packet Page 343
FY2019 City of Chula VistaGeneral Fund Long-Term Financial Plan
2
Measure P Sales Tax.2 FY 2027 includes a partial year of Measure P revenues and FY 2028 is the
first full year of excluding Measure P revenues from the General Fund revenue totals. The
projected revenues include a partial year of revenues from the newly approved Measure A Sales
tax in FY 2019 and a full year of revenue beginning in FY 2020. Revenues from Measure A are
continued throughout the term of the LTFP. General Fund revenues resume the trend of slight
increases from the prior year in FY 2029.
Based on baseline projections for current service levels and the inclusion of the services related to
the Measure A Sales tax measure, growth in expenditures is anticipated to outpace the growth in
revenues for each year of the LTFP period3. This long-term structural shortfall generates budget
deficits for each year of the LTFP. As shown on the following table, the overall General Fund
deficits are projected to increase from approximately $5.5 million in FY 2020 to $18.6 million in
FY 2029 (last year of LTFP period). The addition of new positions or programs, above and beyond
current service levels, is shown in the High Priority Program expenditure category on the table.
The costs associated with these priority additions increase the deficit to $7.1 million in FY 2020 to
$31.8 million in FY 2029.
The following table presents the financial forecast for the General Fund for FY 2020 through FY
2029. Additional information related to revenues and expenditures is provided within the report.
2 Annual revenues generated from the citizen-approved Measure P Sales Tax are reflected in the overall General Fund
revenue totals (Ordinance No. 3371, Chula Vista Municipal Code Chapter 3.33). However, revenues generated from
Measure P are transferred from the General Fund into a separate Measure P Fund for monitoring and accountability.
3 Transfers and expenditures/encumbrances (obligations) related to the Measure P and Measure A Sales tax measures
equal the projected revenues each year resulting in a net zero impact to the General Fund for these items.
2018-09-25 Agenda Packet Page 344
FY2019 City of Chula VistaGeneral Fund Long-Term Financial Plan
3
In development of the LTFP projections, staff reviewed historical budgeted and actual figures,
reviewed current data, and researched current financial trends. Based on the information
collected, continued growth in revenues and expenditures is anticipated throughout the LTFP
period; however, staff employed a conservative approach in developing the projections.
Uncertainty related to several key factors impacting the economy (discussed in more detail in this
report) has led to the moderate growth expectations. It should be noted that these projections do
not incorporate any economic downturn during the LTFP period. Any economic downturn during
the term of the LTFP would negatively impact the LFTP projections. Projections within the LTFP
will be re-evaluated based upon future economic activity.
REPORT OUTLINE
The LTFP includes a brief overview of the current economic environment and information on
potential factors that could impact the City’s fiscal position in the near-term and long-term.
Following the economic updates, information will be provided on the major revenue/expenditure
categories shown within the LTFP. This information will provide brief descriptions of the
Long-Term Financial Plan FY 2020 - 2029
Proposed Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Revenue Projections (millions)
Property Taxes 35.30$ 36.36$ 37.45$ 38.57$ 39.72$ 40.91$ 42.13$ 43.39$ 44.69$ 46.03$ 47.40$
Sales Tax 33.70$ 34.04$ 34.38$ 34.72$ 35.07$ 35.42$ 35.77$ 36.13$ 36.49$ 36.86$ 37.22$
Measure P Sales Tax 18.09$ 18.27$ 18.45$ 18.63$ 18.82$ 19.01$ 19.20$ 19.39$ 14.69$ -$ -$
Measure A Sales Tax1 8.00$ 16.40$ 16.73$ 17.06$ 17.40$ 17.75$ 18.11$ 18.47$ 18.84$ 19.22$ 19.60$
Franchise Fees 11.69$ 11.93$ 12.16$ 12.41$ 12.66$ 12.91$ 13.17$ 13.43$ 13.70$ 13.97$ 14.25$
Utility Users Taxes 5.61$ 5.63$ 5.66$ 5.69$ 5.72$ 5.75$ 5.78$ 5.81$ 5.83$ 5.86$ 5.89$
Transient Occupancy Taxes 4.10$ 4.19$ 4.27$ 4.35$ 4.44$ 4.53$ 4.62$ 4.71$ 4.81$ 4.90$ 5.00$
Motor Vehicle License Fees 21.89$ 22.54$ 23.22$ 23.92$ 24.63$ 25.37$ 26.13$ 26.92$ 27.73$ 28.56$ 29.41$
MAJOR DISCRETIONARY REVENUES 138.37$ 149.35$ 152.31$ 155.35$ 158.45$ 161.64$ 164.90$ 168.24$ 166.77$ 155.39$ 158.78$
OTHER REVENUES2 44.30$ 43.28$ 43.54$ 43.37$ 43.65$ 43.92$ 44.20$ 44.48$ 44.77$ 45.06$ 45.35$
NEW DEVELOPMENT REVENUES3 -$ 2.97$ 4.08$ 5.07$ 6.05$ 7.02$ 7.95$ 8.94$ 9.48$ 9.60$ 9.71$
TOTAL REVENUES 182.68$ 195.59$ 199.94$ 203.78$ 208.15$ 212.58$ 217.05$ 221.66$ 221.02$ 210.04$ 213.84$
Year-over-Year Change 7.07% 2.22% 1.92% 2.14% 2.13% 2.10% 2.12% -0.29% -4.97% 1.81%
Expenditure Projections (millions)
Personnel Services 88.01$ 92.42$ 94.17$ 95.97$ 97.80$ 99.66$ 101.57$ 103.51$ 105.50$ 107.52$ 109.58$
Retirement - PERS 27.59$ 31.24$ 34.44$ 37.12$ 39.43$ 40.95$ 42.69$ 44.44$ 46.25$ 48.15$ 50.13$
Health Insurance 13.53$ 12.42$ 12.46$ 13.02$ 13.60$ 14.20$ 14.84$ 15.50$ 16.19$ 16.91$ 17.67$
Salary Savings (On Going)(0.90)$ (1.75)$ (1.77)$ (1.79)$ (1.81)$ (1.83)$ (1.85)$ (1.87)$ (1.89)$ (1.91)$ (1.93)$
PERSONNEL SERVICES EXPENDITURES 128.23$ 134.32$ 139.31$ 144.31$ 149.01$ 152.98$ 157.25$ 161.58$ 166.05$ 170.67$ 175.45$
OTHER EXPENDITURES4 54.45$ 64.75$ 65.78$ 67.68$ 66.94$ 68.30$ 69.19$ 70.27$ 66.47$ 53.05$ 53.37$
NEW DEVELOPMENT EXPENDITURES5 -$ 2.01$ 2.14$ 2.88$ 2.99$ 3.11$ 3.23$ 3.34$ 3.47$ 3.57$ 3.62$
TOTAL EXPENDITURES 182.68$ 201.08$ 207.23$ 214.87$ 218.94$ 224.38$ 229.67$ 235.19$ 235.99$ 227.29$ 232.44$
Year-over-Year Change 10.07% 3.06% 3.68% 1.90% 2.49% 2.36% 2.40% 0.34% -3.68% 2.26%
TOTAL GENERAL FUND SURPLUS/(DEFICIT)(0.00)$ (5.49)$ (7.30)$ (11.09)$ (10.79)$ (11.80)$ (12.62)$ (13.53)$ (14.97)$ (17.25)$ (18.60)$
SURPLUS/(DEFICIT) AS % OF BUDGET -2.73% -3.52% -5.16% -4.93% -5.26% -5.49% -5.75% -6.34% -7.59% -8.00%
HIGH PRIORITY PROGRAMS
Peace Officer Funding6 -$ 1.63$ 2.58$ 3.62$ 4.75$ 5.96$ 7.28$ 8.67$ 10.19$ 11.68$ 13.18$
TOTAL GENERAL FUND SURPLUS/(DEFICIT)(0.00)$ (7.12)$ (9.87)$ (14.70)$ (15.54)$ (17.75)$ (19.90)$ (22.20)$ (25.15)$ (28.93)$ (31.78)$
SURPLUS/(DEFICIT) AS % OF BUDGET -3.54% -4.76% -6.84% -7.10% -7.91% -8.66% -9.44% -10.66% -12.73% -13.67%
(1) Any revenues in excess of actual expenditures in any year will be carried forward to future years as an encumbrance and continue to be dedicated to Measure A obligations.
(5) New Development Expenditures related to new Millenia parks anticipated to come online during LTFP term.
Description
(3) New Development Revenues reflect increases in various existing revenue categories related to new development within the City.
(2) Other Revenues line item is total of the following budget revenue categories: Development Revenue, Licenses and Permits, Fines, Forfeitures & Penalties, Use of Money and Property, Other Local Taxes,
Police Grants, Other Agency Revenue, Charges for Services, Interfund Reimbursements, Other Revenues - Miscellaneous, and Transfers from Other Funds.
(4) Other Expenditures line item is the total of the following expenditure categories: Supplies and Services, Utilities, Other Expenses, Equipment, Internal Services, and Transfers/Debt Service.
(6) Figure represents City's goal of adding five additional peace officer positions each year to address anticipated growth in City's population. Positions not incorporated in the Intended Public Safety
Expenditure Plan for Measure A Sale Tax Measure.
2018-09-25 Agenda Packet Page 345
FY2019 City of Chula VistaGeneral Fund Long-Term Financial Plan
4
revenues/expenditures, and highlight certain factors that could impact the revenues/expenditure
projections.
Financial projections for the term of the LTFP will be presented following the highlighted
revenues and expenditures. Significant results of the financial projections will be noted following
the financial table.
Following the financial projections, the LTFP presents potential mitigation actions for discussion.
No single, specific action is identified as a solution to resolving the City’s projected shortfalls.
Based upon discussion and input from the City Council and the public, City staff can develop
additional information and recommendations related to addressing future shortfalls.
The final section of this report is information related to the citizen-approved Measure A Sales Tax
and the anticipated expenditure plan for this revenue source. Information related to the
development of the measure, the anticipated expenditure plan (the Intended Public Safety
Expenditure Plan), and the preliminary cash flows for the collection and expenditure of the tax
revenue is provided. The preliminary revenue and expenditure projections will be reviewed and
updated upon discussion with the Measure A Citizen Oversight Committee. The preliminary
financial projections have been incorporated into the LTFP.
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ECONOMIC OVERVIEW
According to multiple reports, the overall national and state economies are growing at a steady
rate with growth projected to continue into 2019 and 2020, albeit at slower rates than 2018. The
steady growth is reflected in the real Gross Domestic Product (GDP) being projected to increase by
three percent by the end of 2018; the national unemployment rate decreasing to 3.9 percent in
July from 4.0 percent in June (an employment rate below the benchmark rate of 4.0 percent is
considered full employment) and the consumer confidence index figure remaining high (127.4 in
July compared to 127.1 in June).4, 5 However, Mark Zandi, chief economist at Moody’s Analytics,
notes that these factors may indicate the economy entering the late stages of the business cycle;
and that the current expansion, which has lasted almost nine years, cannot continue forever.6
According to the UCLA Anderson Forecast second quarter report for 2018, the overall economy
appears to be growing at a steady pace, but there are potential threats that could affect the
national and California economic outlooks.
7 The UCLA Anderson Forecast lists the potential risk of
the U.S. withdrawal from the North American Free Trade Agreement (NAFTA), and a possible
trade war with one or more of the major U.S. trade partners as potentially impacting factors to
current forecasts. The federal administration is engaging in renegotiating NAFTA, which is an
agreement to eliminate barriers to exchanging goods between the United States (U.S.), Canada,
and Mexico; and the U.S. and China have initiated imposing tariffs on goods commonly traded
between both countries. Consequences from either of these actions could result in a slowing of
the economy.
At the state level, the California State Department of Finance and the Legislative Analyst’s Office
(LAO) both anticipate moderate growth over the next year. However, the LAO notes several key
issues that could impact the future trajectory of the State’s economy. These issues include a tight
labor market, actions by the Federal Reserve, and the previously noted trade issues. California’s
unemployment rate as of June 2018 was at 4.2 percent.8 When unemployment is low, economists
generally expect wages and prices to rise, contributing to a rise in inflation. The Federal Reserve
supports a target range of two percent inflation with their monetary policy by increasing or
decreasing federal fund interest rates. With pressure on wages and prices to increase, the Federal
Reserve is likely to increase interest rates to moderate the economy as higher interest rates make
it more expensive for businesses to expand their operations or consumers to finance purchases.
While the Federal Reserve opted to hold the federal interest rates steady at their August meeting,
the Federal Reserve will reconsider rate increases in September and December.
4 “University of San Diego Burnham-Moores Center for Real Estate Index of Leading Economic Indicators for San Diego
County April Report”, University of San Diego, http://www.sandiego.edu.
5 https://www.conference-board.org/data/consumerconfidence.cfm
6 Bernice Napach, “Watch These 10 Signs for the Next Recession,” https://www.Thinkadvisor.com, (April 23, 2018).
7 “UCLA Anderson Forecast sees economy moving ahead – for now”, UCLA Anderson School of Management,
http://www.anderson.ucla.edu.
8 U.S. Department of Labor Bureau of Labor Statistics.
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At the local level, the University of San Diego (USD) Burnham-Moores Center for Real Estate’s
Index of Leading Economic Indicators for San Diego fell 0.2 percent in May (most recent report).
The USD Index tracks six economic indicators: building permits, unemployment insurance, local
stock prices, consumer confidence, help wanted advertising, and the outlook for the national
economy. In May, building permits, unemployment insurance, and help wanting advertising were
negative; while there were slight increases in the remaining categories. Overall, the USD Index
reflected a slight decrease for the second straight month.9
As noted throughout the economic overview, while the economy is growing and consumer
confidence has remained positive, there are concerns related to the future growth of the economy
for various reasons. Three key measures staff will continue to monitor as important measures to
the City’s financial projections are: inflation, housing activity, and the yield curve. Inflation is a
measure of the increase for the cost of goods and services. Housing activity impacts property tax
revenue which is the City’s largest revenue source. And the yield curve (difference between short-
term and long-term investments) is widely held as a strong indicator of future economy activity.
Brief information on these three factors follows.
Inflation
Inflation is the rate at which prices for goods and services increases. Normally inflation averages
between 2 – 3 percent per year. There are multiple factors that impact inflation including but not
limited to: increases in wages which normally drives an increase in employer costs and product
prices; an increase in interest rates as it costs more to borrow funds for investments; and an
increase in product demand.
Inflation impacts many of the City’s revenue and expenditure categories. For revenues, inflation
impacts rents, leases, fees, and investment returns to name a few. Additionally, inflation impacts
expenditures such as service contracts, costs of materials, and borrowing costs. According to a
recent Reuters’ article, in the 12 months ending in June, the Consumer Price Index (a broad
measure for inflation) increased 2.9 percent, the biggest rise since February 2012.
10 In California,
with the approval of Senate Bill 3 by California Governor Jerry Brown, the state minimum wage
will be increasing to $15 per hour by the year 2022.11 As a result expenditure inflation may be
significantly higher than normal over this period of time.
Housing
Housing activity is projected to continue to expand through 2019; however, not at the pace seen in
recent years. Increasing interest rates and higher home prices are anticipated to play key roles in
slowing the housing growth. Per the S&P Corelogic Case-Shiller Index press release of
9 “University of San Diego Burnham-Moores Center for Real Estate Index of Leading Economic Indicators for San Diego
County May Report”, University of San Diego, http://www.sandiego.edu.
10 Lucia Mutikani, “U.S. inflation steadily firming; labor market strong”, https://www.reuters.com (July 12, 2018).
11 Additional information related to Senate Bill 3 can be found at https://leginfo.legislature.ca.gov.
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July 31, 2018, “Continuing price increases appear to be affecting other housing statistics. Sales of
existing single family homes – the market covered by the S&P CoreLogic Case-Shiller Indices –
peaked last November and have declined for three months in a row. The number of pending home
sales is drifting lower as is the number of existing homes for sale. Sales of new homes are also
down and housing stocks are flattening. All these indicators suggest that the combination of rising
home prices and rising mortgage rates are beginning to affect the housing market.”12
Yield Curve
According to research from the Federal Reserve Bank of San Francisco (FRBSF), one of the most
strikingly accurate predictors of future economic activity is the yield curve or the difference
between long-term and short-term interest rates. The interest rates for long-term investments
such as 10-year government bonds are normally higher than short-term investments such as
2-year U.S Treasury Notes. Lately, longer term interest rates have been slow to rise while the
Federal Reserve has moved forward with their plan to raise short-term interest rates as part of
their monetary policy. The rising short-term rates are outpacing the growth in long-term rates
which is reducing the difference in returns and causing the yield curve to “flatten”. This flattening
results in little to no difference between short-term and long-term rates. The following table
shows the yield amount for the 2-year treasury and the 10-year treasury; as well as the difference
or spread between the two investments for 2018 as of September 4, 2018.
13
Should this trend continue, the potential for a negative spread or an inverse yield curve is possible
(short-term rates would be higher than long-term rates). Per an Economic Letter from the FRBSF,
every U.S. recession in the past 60 years was preceded by a negative term spread (inverse yield
curve).14 The delay between the yield curve turning negative and the beginning of a recession
range between 6 and 24 months. While the flattening of the yield curve is concerning, several
factors such as increased confidence in future growth or change in monetary policy from the
Federal Reserve could impede the yield spread from shrinking further or becoming negative.
12 “Rise in Home Prices Remains Steady at 6.4% According to S&P Corelogic Case-Shiller Index”, S&P Dow Jones Indices,
https://www.spice-indices.com.
13 U.S. Department of the Treasury.
14 Michael D. Bauer and Thomas M. Mertens, “Economic Forecasts with the Yield Curve”, Federal Reserve Bank of San
Francisco, https://www.frbsf.org.
Jan Feb Mar Apr May Jun Jul Aug Sep
2 Yr Treasury 1.92 2.16 2.22 2.25 2.50 2.47 2.57 2.67 2.66
10 Yr Treasury 2.46 2.78 2.81 2.73 2.97 2.89 2.87 3.00 2.90
Spread (Difference)0.54 0.62 0.59 0.48 0.47 0.42 0.30 0.33 0.24
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
Yield AmountYield Curve for 2-Yr and 10-Yr Treasuries
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MAJOR REVENUES AND EXPENDITURES
The following assumptions were used in the preparation of the ten year projections attached.
REVENUES
The City’s major revenue sources include: Property Tax, Sales Tax, Measure P Sales Tax, Measure A
Sales Tax, Motor Vehicle License Fees (MVLF), Franchise Fees, Transient Occupancy Tax (TOT),
and Utility Users Tax. The listed revenues account for approximately $138.4 million, or
76 percent, of the City’s General Fund revenues for FY 2019. The following are brief descriptions
of the listed revenue sources.
Property Tax
Property tax revenue is generated from a 1 percent ad valorem tax on “real property” (land,
buildings, and other permanent structures/improvements), based upon the assessed value of the
property. Property tax revenue is the City’s most stable revenue source. For FY 2019, property
tax revenue is anticipated to total $35.3 million, which accounts for 19 percent of the overall
General Fund revenue budget.
The LTFP includes a three percent increase in property tax revenues throughout the term of the
LTFP based on expected continued but moderate growth in property values. The current strong
economy and full employment of the labor market are anticipated to support continued growth in
property revenues; however, rising interest rates, increasing prices and affordability issues are
anticipated to temper the growth for the remainder of the outlook.
Bradley-Burns Uniform Local Sales and Use Tax (Sales Tax)
Sales tax revenue is generated from a percentage tax imposed by the City on the sale of retail
goods and services that occur within the City of Chula Vista. The total citywide sales tax rate is
8.25 percent, of which the City’s General Fund receives 1.0 percent of all the sales transactions
within the City. The General Fund sales tax revenue is anticipated to be approximately
$33.7 million in FY 2019, which represents the second largest revenue source for the City. In
addition to this tax revenue, the citizens of Chula Vista approved the Measure P Sales Tax Measure
in 2016 which established a temporary ten-year ½ percent sales tax rate upon sales within the
City (which is included in the total 8.25% tax rate).
Beginning on October 1, 2018, a third component will contribute to the City’s overall sales tax
revenue. In June 2018, the Measure A Sales Tax was approved by the citizens of Chula Vista. The
Measure A Sales Tax is a ½ percent sales tax on goods and services sold within the City to support
the public safety needs of the city. This will increase the overall sales tax rate to 8.75 percent as of
October 1, 2018, and the ½ percent sales tax will continue until the citizens of Chula Vista vote to
discontinue.
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Measure P Sales Tax
The Measure P sales tax revenue is to support repairing and replacing City infrastructure. While
the revenue generated from the Measure P Sales tax is collected in the General Fund, the General
Fund transfers this revenue to the Measure P Fund for accountability and transparency in the
usage of these funds. These actions result in an overall net zero impact to the General Fund.
Measure P sales tax revenue are anticipated to be approximately $18.1 million in FY 2019.
Measure A Sales Tax
The Measure A sales tax revenue is to support the public safety needs of the City. This revenue
will be collected and tracked within the General Fund. Separate accounts (one for the fire
department and one for the police department) will be established to support the monitoring and
allocation of these funds. Original preliminary estimates anticipated approximately $8.0 million to
be generate in FY 2019 (for two quarters of the fiscal year); however, this tax will be implemented
in October 2019, allowing for the tax to be in place for three quarters of the year, revenues are
anticipated to be higher than the original estimates. The LTFP incorporates the originally
estimated revenues. Upon review by the Measure A Citizen Oversight Committee, the revenue
estimates will be updated to reflect the revised revenue estimates.
Based on high consumer confidence and projections of continued growth in the economy, the
LTFP assumes a one percent growth factor in sales tax revenues over the term of the plan.
Inflation may impact this revenue source as rising prices would generate additional revenue;
however, increased prices may also decrease sales. Staff engages an outside consultant to assist in
the monitoring and projections for all sales tax related revenues.
Motor Vehicle License Fee (MVLF)
The City’s MVLF revenue is projected to be $21.9 million for FY 2019. With the State Budget Act of
2004, the allocation of MVLF revenues to cities and counties was substantially changed. Since
2006, the majority of MVLF revenues for each city grew essentially in proportion to the growth in
the change in gross assessed valuation. Due to the new formula by the State, 96 percent of the
City’s MVLF revenues fluctuated with changes in assessed property values within the City. As
such, this revenue category reflects a three percent increase throughout the term of the plan,
similar to the property tax revenue category.
Franchise Fees
Franchise fees are revenue generated from agreements with private utility companies in exchange
for use of the City’s rights-of-way. Franchise fees are collected from three primary sources: San
Diego Gas & Electric (2% on gas and 1.25% on electricity), trash collection franchises (20% fee),
and cable franchises (5% fee). As each source is impacted by various factors, an individual growth
factor is applied to each source. Overall, while the gas & electric and trash sources have remained
relatively stable, the cable fees have fluctuated in recent years due to changes in the cable
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industry. For FY 2019, total franchise fee revenue is projected to be $11.7 million. The LTFP
anticipates these revenues, in the aggregate,to grow slightly over the term of the plan.
Transient Occupancy Tax (TOT)
TOT is a tax that is imposed on occupants of hotel and motel rooms in the City. TOT revenues are
projected to generate $4.1 million in FY 2019. The TOT tax rate in the City is 10 percent. Major
economic drivers for TOT revenue include room rates, average occupancy rates, and seasonal and
non-seasonal tourism. It is anticipated that TOT revenues will increase as a result of new hotels
being developed within the City over the next several years. However, until these hotels have had
some time to market themselves and establish a strong customer base, growth in the TOT
revenues is anticipated to be tempered by the increased competition within the current market
base. The LTFP projects an annual two percent growth rate for TOT revenues, which is anticipated
to be a conservative estimate and will be updated as new hotels become established.
Utility User Tax (UUT)
The City adopted its Utility Users Tax (UUT) in 1970. The City of Chula Vista imposes a UUT on the
use of telecom at the rate of 4.75 percent of gross receipts. The UUT on natural gas services is
$0.00919 per therm and $0.00250 per kilowatt on electricity services, which equates to
approximately a 1 percent tax. For FY 2019, revenues are projected for a total of $5.6 million. The
LTFP assumes a one percent annual increase throughout the term of the plan.
EXPENDITURES
The City’s major expenditure categories include: Personnel costs, Retirement Benefits, and Health
Insurance. The listed expense categories account for approximately $128.2 million or 70 percent
of the City’s General Fund expenditures for FY 2019. The following are brief descriptions of the
listed expenditure categories.
Personnel
Since the last economic recession, the City has focused on recovering its staffing levels to support
City services. Since 2015, the City has increased staffing by approximately five percent by adding
38.0 Full-time Equivalent (FTE) positions to various departments. The primary beneficiary has
been public safety as 23 of the 38 added FTEs (61 percent) have fallen into this service category.
For FY 2019, the total General Fund staffing is 844.25 FTEs. For FY 2019, personnel costs, not
including retirement benefits or health insurance, are projected to be approximately $87.1 million.
The projected salary expenses are net anticipated salary savings from the City departments. Salary
savings is the amount of salary expense that a department saves when a position is held vacant for
a period of time or filled at a lower salary level than the originally budgeted level.
The LTFP includes the annualized costs of negotiated salary increase approved per the current
Memoranda of Understanding (MOU) with each of the City’s employee groups. The MOUs vary in
negotiated salary increases from 2.0 to 2.5 percent annually, and vary in duration. The City is in
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current negotiations with the Chula Vista Mid-Managers/Professional Association as this MOU
expired on June 30, 2018. Beyond the expiration of the current MOUs, the LTFP assumes wage
inflation of 2 percent per year. It is important to note that this figure is simply an assumption for
financial projections and does not represent a commitment or obligation, but rather provides a
baseline for wage related inflation in the future.
Retirement Benefits
The City contracts with California Public Employees’ Retirement System (CalPERS) for retirement
benefits for all full-time benefitted employees. The City has two employee retirement plans
(Miscellaneous and Safety), each with three tiers of employees based upon their start date within
the CalPERS system and the City of Chula Vista. The Miscellaneous plan covers all qualified City
employees except those which are considered public safety employees (fire and police
departments). The Public Safety plan covers all qualified public safety employees. For each of the
benefit rates referenced below, CalPERS uses the percentage of service credit earned in one year
(3%, 2%, etc.) and the full retirement age (60, 50, etc.) to describe their tiers.
Tier 1 employees include employees who became members of CalPERS and started with
the City of Chula Vista prior to 4/22/2011. Miscellaneous tier 1 employees receive benefits
at the rate of 3 percent at 60. Public Safety tier 1 employees receive benefits at the rate of
3% at 50.
Tier 2 employees include employees that became members of CalPERS or a reciprocal
agency prior to 1/1/2013 but started with the City after 4/22/2011. Miscellaneous tier 2
employees receive benefits at the rate of 2 percent @ 60. Public Safety tier 2 employees
receive benefits at the rate of 3 percent at 55.
Tier 3, or Public Employees’ Pension Reform Act (PEPRA), employees include all employees
that are new members to CalPERS on or after 1/1/2013. Miscellaneous tier 3 employees
receive benefits at the rate of 2 percent at 62. Public Safety tier 3 employees receive
benefits at the rate of 2.7 percent at 57.
CalPERS provides separate annual valuation reports for the two retirement employment plans.
These reports provide the City with two very important figures. The first is the City’s unfunded
actuarial liability (UAL) which is the amount the City would have to pay to CalPERS today to
completely pay off all pension liability. The UAL represents the unfunded liability the plan has
incurred. As of June 30, 2017, the most recent CalPERS valuation report available, the City’s
unfunded liability was $171.1 million for the Miscellaneous plan and $140.8 million for the Public
Safety plan for an overall total of $311.9 million. Based on the CalPERS valuation report, the
FY 2019 UAL prepayment amount for the Miscellaneous plan and the Public Safety plan are
$10.9 million and $7.3 million, respectively.
The second important figure is the City’s required employer contribution for the Normal Cost or
the annual cost of service accrual for the upcoming fiscal year for active employees. This is amount
of money the City will need to contribute for the current fiscal year towards pension costs. For
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FY 2019, the required employer Normal Cost contribution for the Miscellaneous plan is
$5.7 million and the Public Safety plan is $7.9 million, for a total cost of $13.6 million, respectively.
The UAL and Normal Cost payment amounts are used to calculate the City’s fiscal year pension
contribution amount. The City’s total pension contribution amount for FY 2019 is $31.9 million,
with the City’s General Fund portion being $27.6 million. The following table shows the City’s
General Fund total retirement contributions since FY 2016.
The CalPERS valuation reports also provide the City with a five-year projection of future employer
contribution amounts that the City utilizes in making long term projections. Based on the
projections within the valuation reports, the City’s General Fund retirement contributions will
increase from approximately $31.2 million in FY 2020 to $42.7 million in FY 2027. The following
chart illustrates the increasing Retirement costs from FY 2019 to FY 2025.
On December 21, 2016, the CalPERS Board of Directors decided to lower the rate of return
assumption from 7.5 percent to 7.0 percent over a three-year period beginning in FY 2019. The
assumed rated of return would change to 7.375 percent in FY 2019, decreasing to 7.250 percent in
FY 2020, and settling at 7.00 percent in FY 2021. This change may result in approximately 30-40
percent increase in the City’s unfunded pension liability as well as increasing normal pension
costs. The LTFP includes the anticipated impacts of this change.
Part-time employees receive retirement benefits through Public Agency Retirement System
(PARS). PARS is an alternative to Social Security for Part-Time, Seasonal, and Temporary
employees. The City and employees both currently contribute 3.75 percent of salary towards the
PARS contribution amount of 7.5 percent.
General Fund Retirement Contributions (millions)
Fiscal Year FY 2016
Actual
FY 2017
Actual
FY 2018
Adopted
FY 2019
Adopted
Contribution Amount $20.87 $23.78 $24.53 $27.59
Increase ($) from Prior Year $2.90 $0.75 $3.06
Increase (%)from Prior Year 13.9% 3.2% 12.5%
$27.59
$31.24
$34.44
$37.12 $39.43 $40.95 $42.69
$0.00
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$35.00
$40.00
$45.00
FY 2019
Adopted
FY 2020
Projected
FY 2021
Projected
FY 2022
Projected
FY 2023
Projected
FY 2024
Projected
FY 2025
Projected
General Fund Retirement Contributions
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Health Insurance
The City currently offers for qualified benefitted employees four medical plan options: United
Healthcare (UHC) (value and full plans); UHC Preferred Provider Organization (PPO); and Kaiser
Health Maintenance Organization (HMO). The City does allow retirees to stay enrolled in the City’s
health plans at the same rate as active employees. The City recently went out to bid to ensure the
best overall value for the plans offered to our employees. As a result of the bid process, Aetna was
replaced by UHC for the value, HMO, and PPO plans.
For FY 2019, health insurance expenses are projected to total approximately $13.6 million, or
7.7 percent of the FY 2019 expenditures. This represents an increase of $1.2 million or
9.7 percent from the fiscal year 2018 Adopted Budget. Kaiser and AETNA/UHC insurance
premiums have increased an average of 4.3 percent and 5.9 percent per year respectively since
the beginning of Calendar Year 2014.
CAPITAL EXPENDITURES
To identify the City’s infrastructure and capital needs, the City developed an asset management
plan. The asset management plan inventoried all City infrastructure and property assets,
conducted condition assessments on each asset, prioritized the assets by risk level and
importance, and performed a life cycle cost assessment. This information allowed the City to
develop a cost estimate for the capital improvement program. The asset management plan sorted
the City assets into three categories: red (high risk), yellow (medium risk), and green (low risk).
This allows for the City to make necessary decisions on each asset (repair, replace, renovate,
liquidate, shut down, relocate, etc.), and to budget available resources towards the repair and
replacement of these assets. Currently, the red category has approximately $112 million in
estimated funding required to repair and replace these high risk assets. The yellow category
currently has an estimated $437.6 million in funding required for repair and replacement costs.
In light of the projected costs to repair and replace the City’s capital assets, the City Council placed
a temporary ten-year ½ percent sales tax measure (Measure P) on the November 2016 ballot to
address the high priority capital needs. In November 2016, Chula Vista voters approved
Measure P. The sales tax was projected to generate $178 million in additional revenue over the
ten-year period. To guide the expenditure of these revenues, the City developed the Intended
Infrastructure, Facilities and Equipment Expenditure Plan (IFEEP) based on information from the
City’s asset management plan. As the Measure P Sales Tax has a limited term, the IFEEP focuses on
critical one-time items to address deferred maintenance and improve the safety of the City’s
infrastructure. As the IFEEP focuses on one-time allocations, any additional operating costs for
new or improved facilities, such as fire stations, will need to have an alternative funding source.
Examples of ongoing operational costs include additional staff or increased utility costs.
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The LTFP includes the Measure P revenues as General Fund revenues; however, these revenues
are paired with a corresponding transfer out of the General Fund to the Measure P fund. The
transfer of the funds provides for accurate monitoring of the allocation and expenditure of these
funds to ensure compliance with the original intent of the sales tax measure. The corresponding
transfer results in a net zero impact to the General Fund. The LTFP includes minimal capital
expenditures beyond those anticipated to be funded through Measure P funding. Information on
Measure P allocations and projects can be found on the City’s website:
https://www.chulavistaca.gov/departments/engineering.
General Fund alternative funding sources, such as grants and transportation funds, support the
City’s capital program. However, as the LTFP only addresses the General Fund, these resources
and expenditures are not included in this report. Additional information related to the City’s
capital program and funding sources can be found on the City’ website:
https://www.chulavistaca.gov/departments/public-works/projects.
OUTSTANDING CITY DEBT
The City has three outstanding Certificates of Participation (COP) that are funded with General
Fund contributions, Public Facilities Development Improvement Funds (PFDIF), and/or the
Residential Construction Tax Funds (RCT). The outstanding COPs consist of: the 2014 Refunding
COP, the 2015 Refunding COP, and the 2016 Refunding COP. These COPs have refunded the
outstanding principal of various earlier COPs which were used to fund the construction of the
City’s Police Facility, Civic Center improvements, Western Chula Vista Infrastructure projects, and
Nature Center Improvements.
In addition to the outstanding COPs, the City has three outstanding lease revenue bond issuances.
These include: the Chula Vista Municipal Financing Authority (CHMFA) 2017 Lease Revenue
Bonds (2017 Bonds); and the CHMFA Lease Revenue Bonds (New Clean Renewable Energy
Bonds) Series 2017A and Series 2017B (2017A and 2017B Bonds). The 2017 Bonds (Measure P)
were issued to finance infrastructure, facilities, and equipment; and the 2017A and 2018B Bonds
were issued to finance photovoltaic (solar) energy systems at various City facilities. Funding from
the Measure P Sales Tax will address the annual debt service for the 2017 Bonds. It is anticipated
that savings in City utility costs will exceed the annual debt service for the 2017A and 2017B
bonds, resulting in a positive impact to the General Fund.
The following table illustrates the City’s General Fund debt obligations. While the City has several
outstanding bond issuances, the General Fund’s portion of the annual debt service payments is
approximately $3.6 million for FY 2019. This represents approximately 2 percent of the General
Fund revenues for FY 2019. The low annual General Fund debt service payment supports
maintaining flexibility within the General Fund as a low percentage of the General Fund revenue is
dedicated to long-term ongoing obligations.
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Additional information related to the City’s outstanding debt can be found on the City’s website:
https://www.chulavistaca.gov/departments/finance/financial-reports.
NOT INCLUDED IN THE PLAN
Development Impacts
As new major developments are proposed in the City, each developer is required to submit a fiscal
impact analysis to ensure that the City’s revenues generated from the project will meet or exceed
the anticipated expenditures. However, the actual timing of the impact from new development in
revenues and expenditures is difficult to predict. As the development projects vary, such as new
hotels or new housing, various factors influence the impact of the projects. The timing of the
revenues related to new development can vary greatly depending on how fast the market can
absorb the new inventory and the economic condition throughout the development process. Staff
is currently working on developing an updated fiscal impact model to provide projections based
on the best information available. The LTFP currently projects minimal revenue impacts from new
development based upon percentage increases to existing base revenues.
Economic downturn
As previously discussed, the potential for an economic downturn is plausible. However, the LTFP
does not attempt to incorporate the impact of a downturn as the timing and duration of a
downturn is difficult to project. While the growth projections incorporated into the LTFP are
conservative, the growth factors will be re-evaluated as needed based upon future economic
indicators.
10 YEAR PROJECTIONS
The following table projects the revenue and expenditure categories for the City’s General Fund
for FY 2020 – 2029. It is important to understand that this is only a forecast and not indicative of
what the budgets will be in future years. The following key assumptions were incorporated into
the financial projections.
The LTFP maintains current staffing and program levels throughout the term of the plan.
No new staffing was included in the projections except for necessary staff to operating new
facilities (fire stations) coming online within the Plan period; and five new peace officers
General
Fund Other1
2014 Refunding COP Police Facility Project $45,920,000 $39,440,000 $3,601,806 $2,004,405 $1,597,401 FY 2033
2015 Refunding COP Civic Center Project $34,330,000 $30,220,000 $2,921,263 $424,304 $2,496,959 FY 2034
2016 Refunding COP Civic Center Project $8,600,000 $8,600,000 $282,550 $57,112 $225,438 FY 2036
2016 Lease Revenue Refunding Bonds Capital Lease Refunding Project $25,885,000 $23,130,000 $2,150,075 $612,091 $1,537,984 FY 2033
2017 Lease Revenue Bonds Measure P $61,355,000 $55,805,000 $8,120,250 $0 $8,120,250 FY 2027
Lease Revenue Bonds Series 2017A CREBs $12,045,000 $12,045,000 $485,781 $485,781 $0 FY 2049
Lease Revenue Bonds Series 2017B Tax-Exempt $1,085,000 $1,085,000 $42,350 $42,350 $0 FY 2029
Total $189,220,000 $170,325,000 $17,604,075 $3,626,043 $13,978,032
1Other Funding sources include Public Facilities Development Improvement Fees (PFDIF), Residential Construction Tax (RCT) Funds, and Measure P funds.
General Fund Obligations Description
Principal
Outstanding
6/30/18
FY 2019
Debt
Payment
Final
Maturity
Payment Sources
Original Issuance
Amount
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annually as part of the City’s goal to increase police staffing. The expense for the additional
staff for the new fire stations is included in the New Development category as these
positions will be necessary to operate the new facilities. The additional expenses for the
five additional peace officers are shown under the “High Priority Programs” section of the
table as these support the goals of the City.
As noted, the LTFP include expenses related to staffing and operation of two new fire
stations (Millenia and Bayfront) as new development expenses for the General Fund.
Future discussions with the oversight committee for the newly approved Measure A Sales
Tax, and the outcome of outstanding issues related to the Port of San Diego may lead to re-
evaluating these expenses as future General Fund obligations.
General Fund expenses related to twelve firefighter positions added in FY 2018 will be
addressed with Measure A funding after October 1,2018.
The only new revenue source included in the LTFP are related to Measure A.
o Revenues from the newly approved Measure A Sales Tax are budgeted as General
Fund revenues and will be tracked with separate accounts for the police and fire
departments. The separate accounts will assist in the monitoring and use of the
funds. These revenues are dedicated to supporting the City’s public safety needs
and will have a corresponding expenditure appropriation each year.
o No additional revenues are budgeted as reimbursement for General Fund staff
support for Measure A actions. While the proposed expenditure plan for Measure A
does include funding for support staff, no reimbursement projections have been
included in the LTFP projections. The revenues for staff support will be updated
when the Measure A oversight committee has updated the proposed expenditure
plan.
No projections or assumptions are included related to future ballot measures.
o In response to the Adult Use of Marijuana Act, adopted by voters of the State of
California in 2016, and the Medicinal and Adult-Use Cannabis Regulation and Safety
Act, enacted by the California Legislature in 2017, the City adopted Ordinance No.
18-3418 (Chula Vista Municipal Code chapter 5.19) in March 2018 to permit,
regulate and license commercial cannabis activity in the City. The City has
submitted a measure for voter consideration on the November 2018 ballot to enact
a set of taxes upon commercial cannabis businesses within the City to generate
revenue to address the ongoing costs to permit, license, and fully regulate
commercial cannabis businesses that will be operating within the City. The
intended measure will be a general tax and will require approval by a simple
majority (50% plus 1 of those castings ballots). If approved, the tax proceeds can
be spent for any lawful general government purposes. Should this measure be
approved, the projections within the LTFP will be revised to incorporate revenue
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and expenditure projections related to this measure.
The City is currently in discussions with the City’s labor group for less expensive
healthcare options for City employees. Potential new options could reduce healthcare
costs that will benefit both employee and the City overall. The LTFP incorporates
approximately $1.1 million in health insurance cost savings beginning in FY 2020.
The LTFP does not include any future debt issuances for capital projects.
The LTFP includes the full projected UAL expense for FY 2020 – 2029. The annual
valuation reports from CalPERS provides the City with two payment options for the City’s
annual contribution. The City may pay the full amount of the calculated payment at the
beginning of the fiscal year and receive a discount (approximately 3.5 percent) off the full
payment; or the City can make the full payment across twelve monthly payments. For FY
2109, the City opted to pay the discounted amount at the beginning of the fiscal year. The
decision to pay the full amount at the beginning of the year versus monthly payments will
be made annually based upon available financial resources. The LTFP conservatively did
not assume any discounts to future projected annual contribution amounts.
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Long-Term Financial Plan FY 2020 - 2029
Proposed Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Revenue Projections (millions)
Property Taxes 35.30$ 36.36$ 37.45$ 38.57$ 39.72$ 40.91$ 42.13$ 43.39$ 44.69$ 46.03$ 47.40$
Sales Tax 33.70$ 34.04$ 34.38$ 34.72$ 35.07$ 35.42$ 35.77$ 36.13$ 36.49$ 36.86$ 37.22$
Measure P Sales Tax 18.09$ 18.27$ 18.45$ 18.63$ 18.82$ 19.01$ 19.20$ 19.39$ 14.69$ -$ -$
Measure A Sales Tax1 8.00$ 16.40$ 16.73$ 17.06$ 17.40$ 17.75$ 18.11$ 18.47$ 18.84$ 19.22$ 19.60$
Franchise Fees 11.69$ 11.93$ 12.16$ 12.41$ 12.66$ 12.91$ 13.17$ 13.43$ 13.70$ 13.97$ 14.25$
Utility Users Taxes 5.61$ 5.63$ 5.66$ 5.69$ 5.72$ 5.75$ 5.78$ 5.81$ 5.83$ 5.86$ 5.89$
Transient Occupancy Taxes 4.10$ 4.19$ 4.27$ 4.35$ 4.44$ 4.53$ 4.62$ 4.71$ 4.81$ 4.90$ 5.00$
Motor Vehicle License Fees 21.89$ 22.54$ 23.22$ 23.92$ 24.63$ 25.37$ 26.13$ 26.92$ 27.73$ 28.56$ 29.41$
MAJOR DISCRETIONARY REVENUES 138.37$ 149.35$ 152.31$ 155.35$ 158.45$ 161.64$ 164.90$ 168.24$ 166.77$ 155.39$ 158.78$
Development Revenue 1.25$ 2.06$ 2.06$ 2.07$ 2.08$ 2.08$ 2.09$ 2.10$ 2.10$ 2.11$ 2.11$
Licenses and Permits 1.45$ 1.48$ 1.51$ 1.54$ 1.57$ 1.60$ 1.63$ 1.66$ 1.70$ 1.73$ 1.77$
Fines, Forfeitures & Penalties 1.24$ 1.27$ 1.29$ 1.32$ 1.34$ 1.37$ 1.40$ 1.43$ 1.46$ 1.48$ 1.51$
Use of Money and Property 2.95$ 2.38$ 2.40$ 2.42$ 2.44$ 2.46$ 2.49$ 2.51$ 2.53$ 2.56$ 2.58$
Other Local Taxes 2.60$ 2.62$ 2.65$ 2.68$ 2.70$ 2.73$ 2.76$ 2.79$ 2.81$ 2.84$ 2.87$
Police Grants 0.84$ 0.84$ 0.84$ 0.84$ 0.84$ 0.84$ 0.84$ 0.84$ 0.84$ 0.84$ 0.84$
Other Agency Revenue 2.25$ 2.27$ 2.30$ 2.32$ 2.34$ 2.36$ 2.39$ 2.41$ 2.44$ 2.46$ 2.49$
Charges for Services 7.32$ 7.36$ 7.39$ 7.43$ 7.47$ 7.50$ 7.54$ 7.58$ 7.62$ 7.65$ 7.69$
Interfund Reimbursements 8.15$ 9.74$ 9.83$ 9.49$ 9.58$ 9.68$ 9.77$ 9.87$ 9.97$ 10.07$ 10.17$
Other Revenues - Miscellaneous 1.07$ 1.07$ 1.08$ 1.08$ 1.09$ 1.09$ 1.10$ 1.10$ 1.11$ 1.12$ 1.12$
Transfers From Other Funds 15.20$ 12.20$ 12.20$ 12.20$ 12.20$ 12.20$ 12.20$ 12.20$ 12.20$ 12.20$ 12.20$
OTHER REVENUES 44.30$ 43.28$ 43.54$ 43.37$ 43.65$ 43.92$ 44.20$ 44.48$ 44.77$ 45.06$ 45.35$
NEW DEVELOPMENT REVENUES
Property Taxes -$ 1.01$ 1.41$ 1.76$ 2.10$ 2.46$ 2.79$ 3.19$ 3.37$ 3.37$ 3.37$
Sales Tax -$ 0.32$ 0.45$ 0.59$ 0.74$ 0.85$ 0.96$ 1.06$ 1.16$ 1.17$ 1.18$
Franchise Fees -$ 0.28$ 0.36$ 0.45$ 0.54$ 0.63$ 0.72$ 0.80$ 0.88$ 0.90$ 0.91$
Utility Users Taxes -$ 0.10$ 0.14$ 0.17$ 0.20$ 0.23$ 0.26$ 0.29$ 0.29$ 0.29$ 0.30$
Transient Occupancy Taxes -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Motor Vehicle License Fees -$ 0.70$ 0.97$ 1.21$ 1.45$ 1.69$ 1.92$ 2.20$ 2.32$ 2.39$ 2.46$
Other Revenues - Miscellaneous -$ 0.38$ 0.50$ 0.62$ 0.74$ 0.86$ 0.98$ 1.06$ 1.16$ 1.17$ 1.18$
Other Local Taxes -$ 0.19$ 0.26$ 0.26$ 0.28$ 0.31$ 0.33$ 0.35$ 0.30$ 0.30$ 0.31$
NEW DEVELOPMENT REVENUES -$ 2.97$ 4.08$ 5.07$ 6.05$ 7.02$ 7.95$ 8.94$ 9.48$ 9.60$ 9.71$
TOTAL REVENUES 182.68$ 195.59$ 199.94$ 203.78$ 208.15$ 212.58$ 217.05$ 221.66$ 221.02$ 210.04$ 213.84$
Year-over-Year Change 7.07% 2.22% 1.92% 2.14% 2.13% 2.10% 2.12% -0.29% -4.97% 1.81%
Expenditure Projections (millions)
Personnel Services 88.01$ 92.42$ 94.17$ 95.97$ 97.80$ 99.66$ 101.57$ 103.51$ 105.50$ 107.52$ 109.58$
Retirement - PERS 27.59$ 31.24$ 34.44$ 37.12$ 39.43$ 40.95$ 42.69$ 44.44$ 46.25$ 48.15$ 50.13$
Health Insurance 13.53$ 12.42$ 12.46$ 13.02$ 13.60$ 14.20$ 14.84$ 15.50$ 16.19$ 16.91$ 17.67$
Salary Savings (On Going)(0.90)$ (1.75)$ (1.77)$ (1.79)$ (1.81)$ (1.83)$ (1.85)$ (1.87)$ (1.89)$ (1.91)$ (1.93)$
PERSONNEL SERVICES EXPENDITURES 128.23$ 134.32$ 139.31$ 144.31$ 149.01$ 152.98$ 157.25$ 161.58$ 166.05$ 170.67$ 175.45$
Supplies and Services 13.67$ 14.95$ 16.07$ 17.18$ 15.47$ 15.90$ 15.88$ 16.01$ 16.35$ 16.69$ 17.04$
Utilities 4.78$ 4.21$ 3.63$ 3.89$ 4.17$ 4.50$ 4.81$ 5.14$ 5.49$ 5.86$ 5.26$
Other Expenses 0.70$ 0.71$ 0.72$ 0.74$ 0.75$ 0.77$ 0.78$ 0.80$ 0.82$ 0.83$ 0.85$
Equipment (Capital not CIP)0.22$ 0.22$ 0.22$ 0.22$ 0.22$ 0.22$ 0.22$ 0.22$ 0.22$ 0.22$ 0.22$
Internal Services 2.96$ 3.02$ 3.08$ 3.14$ 3.20$ 3.26$ 3.33$ 3.40$ 3.46$ 3.53$ 3.60$
Measure A Obligations 8.00$ 16.40$ 16.73$ 17.06$ 17.40$ 17.75$ 18.11$ 18.47$ 18.84$ 19.22$ 19.60$
Transfers/Debt Service 24.12$ 25.24$ 25.33$ 25.45$ 25.72$ 25.89$ 26.06$ 26.24$ 21.29$ 6.70$ 6.80$
OTHER EXPENDITURES 54.45$ 64.75$ 65.78$ 67.68$ 66.94$ 68.30$ 69.19$ 70.27$ 66.47$ 53.05$ 53.37$
NEW DEVELOPMENT EXPENDITURES
Millenia Parks Maintenance -$ 0.35$ 0.40$ 0.41$ 0.42$ 0.42$ 0.43$ 0.44$ 0.45$ 0.46$ 0.46$
Millenia Fire Station -$ 1.66$ 1.74$ 1.83$ 1.91$ 1.99$ 2.08$ 2.16$ 2.25$ 2.32$ 2.36$
Bayfront Fire Station -$ -$ -$ 0.64$ 0.67$ 0.69$ 0.72$ 0.74$ 0.77$ 0.79$ 0.80$
NEW DEVELOPMENT EXPENDITURES -$ 2.01$ 2.14$ 2.88$ 2.99$ 3.11$ 3.23$ 3.34$ 3.47$ 3.57$ 3.62$
TOTAL EXPENDITURES 182.68$ 201.08$ 207.23$ 214.87$ 218.94$ 224.38$ 229.67$ 235.19$ 235.99$ 227.29$ 232.44$
Year-over-Year Change 10.07% 3.06% 3.68% 1.90% 2.49% 2.36% 2.40% 0.34% -3.68% 2.26%
TOTAL GENERAL FUND SURPLUS/(DEFICIT)(0.00)$ (5.49)$ (7.30)$ (11.09)$ (10.79)$ (11.80)$ (12.62)$ (13.53)$ (14.97)$ (17.25)$ (18.60)$
SURPLUS/(DEFICIT) AS % OF BUDGET -2.73% -3.52% -5.16% -4.93% -5.26% -5.49% -5.75% -6.34% -7.59% -8.00%
HIGH PRIORITY PROGRAMS
Peace Officer Funding2 -$ 1.63$ 2.58$ 3.62$ 4.75$ 5.96$ 7.28$ 8.67$ 10.19$ 11.68$ 13.18$
TOTAL GENERAL FUND SURPLUS/(DEFICIT)(0.00)$ (7.12)$ (9.87)$ (14.70)$ (15.54)$ (17.75)$ (19.90)$ (22.20)$ (25.15)$ (28.93)$ (31.78)$
SURPLUS/(DEFICIT) AS % OF BUDGET -3.54% -4.76% -6.84% -7.10% -7.91% -8.66% -9.44% -10.66% -12.73% -13.67%
(1) Any revenues in excess of actual expenditures in any year will be carried forward to future years as an encumbrance and continue to be dedicated to Measure A obligations.
Description
(2) Figure represents City's goal of adding five additional peace officer positions each year to address anticipated growth in City's population. Positions not incorporated in the Intended Public Safety
Expenditure Plan for Measure A Sale Tax Measure.
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The LTFP projects future structural deficits absent further action by the City to bridge the funding
gaps. Based on baseline projections, growth in expenditures is anticipated to outpace the growth
in revenues for each year of the LTFP period. This long-term structural shortfall generates
incremental deficits each year of the LTFP. The overall General Fund deficits are projected to
increase from approximately $7.1 million in FY 2020 to $31.8 million in FY 2029 (last year of LTFP
period).
General Fund Reserves
City Council Policy No. 220-03 establishes a General Fund Operating Reserve Fund for the City.
The General Fund Operating Reserve (Operating Reserve) represents unrestricted resources or
unassigned balance available for appropriations by the City Council to address extraordinary
needs. The policy sets the long-term goal of building a General Fund Operating Reserve of no less
than 15 percent of the City’s operating expenditures. Per the policy, the Operating Reserve is to be
used to provide temporary financing for unanticipated extraordinary needs of an emergency
nature, such as major storm drain repairs, litigation, or settlement costs or an unexpected liability
created by Federal or State legislative action. Authorized use of this Operating Reserve requires
approval by four/fifths vote of the City Council.
In addition to the Operating Reserve, Policy No. 220-03 established the Economic Contingency
Reserve (Contingency Reserve) and the Catastrophic Event Reserve (Catastrophic Reserve). The
funding goal for these reserves is 5 percent and 3 percent of the annual operating budget,
respectively. The Contingency Reserve is funding set aside to mitigate a significant downturn in
the economy; while the Catastrophic Reserve is to be used to address unexpected expenses related
to a major natural disaster in the City. Usage of either of these funds requires authorization by
four/fifths of the City Council. It is anticipated that the funding of these reserves would be a long-
term goal and would be funded from unanticipated revenues or expenditure savings.
The annual budget does not include a line item to build reserves; all anticipated revenues have
been budgeted in order to balance the budget. Higher reserve levels will help mitigate the
negative impact on revenues from economic fluctuations, support debt service coverage ratios,
and provide a resource to fund unforeseen expenditure requirements.
Based on current projections and the proposed year-end actions for FY 2018, the unassigned
balance for the General Fund for the beginning of FY 2019 is anticipated to be approximately
$20.4 million or 13 percent of the FY 2019 General Fund operating budget. The following table
shows the projected fund balances for the General Fund reserve funds for FY 2019.
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POTENTIAL SOLUTIONS TO RESOLVE STRUCTURAL OPERATING DEFICIT
The LTFP projects future structural deficits throughout the Plan period. Increases in expenditures
are projected to outpace revenue growth throughout the forecast period. Below are possible
actions that could be further explored in order to develop potential actions to mitigating future
deficits.
Technology – Identify and purchase technology that provides a positive return on its public
investment. Technology can increase service levels to the constituents without raising costs to
the City (ex. Third Party Mobile Applications), it can create new revenues to the City that
exceed its costs, or it can reduce costs overall through the replacement of manual processes
(ex. provide more services with the same amount of staff).
Efficiency – Evaluate current City processes for potential efficiencies in delivering City services.
Efficiencies could allow for the delivery of City services for less cost or provide greater benefits
to the public.
Policies for use of One-Time Funds – Many cities establish policies to guide the usage of one-
time funds so that as grants, donations, and unexpected revenues are received, the funds are
allocated to the highest priority in the City automatically. A typical one-time funds policy
would first allocate additional revenues to a reserve fund until the minimum required reserve
is met, then perhaps pension stabilization fund, a vehicle and equipment replacement fund,
and finally a comprehensive asset management program (capital projects). Other potential
uses of one-time funds include projects and services that create ongoing revenue streams (ex.
solar projects, business attraction incentives, etc.).
Use of Public Private Partnerships – Public private partnerships are cooperative agreements
between a government agency (City), and the private sector to deliver a service or a project
and can take a variety of forms. One great example of this type of partnership currently taking
place in the City of Chula Vista is within the City’s library system. Several non-profit
organizations partner with the City to provide services to the public at local libraries at low or
no cost. Other creative public-private partnerships that have been used by other cities include
Operating
Reserve
Contigency
Reserve
Catastrophic
Reserve
General Fund Expenditures1 $156.6 $156.6 $156.6
Reserve Amount2 $20.4 $3.6 $0.0
Percentage of GF Revenue 13.0% 2.3%0.0%
Policy Target 15.0% 5.0%3.0%
(2) Projected balance for beginning of FY 2019.
General Fund Reserves - FY 2019
(1) Figures exclude $18.1 million in Measure P transfers and $8.0 million in Measure A
expenditures/encumbrances.
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adopt-a-park programs where citizens or local organizations volunteer to maintain or
rehabilitate an existing park (ex. Living Coast Discovery Center, Olympic Training Center).
Internship/Volunteer Programs – Utilize volunteers and internships to support City staff with
one time projects, special events, research, and analysis. While these individuals will not
perform day-to-day duties of current City employees, they are able to add value without
significant cost. A robust internship/volunteer program can create significant financial
benefits to the City while providing the individuals volunteering valuable experience and skills
that can make them more attractive when seeking full time employment.
Contract Services – Cities commonly contract out for a variety of services including but not
limited to: legal; engineering; financial; and specialty services typically in cases where the City
does not possess the in-house expertise to perform the function most efficiently.
Service levels – Service level can be defined simply as the quantity and quality of the services
provided by a City. As economic cycles occur and City revenues rise and fall, the most difficult
job for a City is to maintain service levels. The structural deficit detailed in the LTFP
demonstrates the severity of the projected fiscal condition of the City and the importance of
balancing service levels with financial resources. The City should undertake a comprehensive
review of all the services provided by the City. By defining these services and setting a
minimum standard for the delivery of those services; a model could be developed that
prioritizes where potential reductions in service level could take place with the least overall
impact to the citizens of Chula Vista.
Fees/Cost Recovery – In general, local governments provide many services to the general
population at no charge (ex. Police, Fire, Road Maintenance, Park Maintenance, etc.). These
services are paid for with general revenues that the City receives including sales tax, property
tax, and a variety of other general revenue sources. Cities also provide many services that are a
specific benefit to the party requesting the service. The parties benefiting from these special
services are charged a fee. Reviewing development plans, inspecting buildings, renting a park
space, etc. are all examples of services the City provides that are paid directly by a citizen or
developer. The City’s current master fee schedule was adopted to set the fees for all services
the City provides directly to a citizen or developer. In practice fees should be set to recover all
costs. Some services are subsidized by the City in order to encourage participation in a
program or event. It is important to review all subsidized fees periodically to assess the
feasibility of continuing to subsidize these services in the future.
Priority Based Budgeting – During the last recession the City put together a Fiscal Recovery
Plan. The plan detailed the steps necessary to navigate through the worst recession in over
eighty years by prioritizing divisions and functions and making reductions where necessary in
order to balance the budget. By taking a bottom up approach, the City could review and classify
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all services by priority in order to identify functions and programs that can be restructured
either through attrition or reorganization. Some finance officers refer to this as “zero based
budgeting” because it starts with a blank budget and funds are allocated in priority order until
all funds are allocated.
Competitive Purchasing – The City’s Municipal Code and Charter set competitive bidding
requirements on materials, supplies, equipment, and services that the City procures. The
minimum threshold of those competitive requirements starts at $10,000 for a single purchase.
The reason that cities have minimum bidding thresholds is because at some point it becomes
an administrative burden to try and get quotes or bids on smaller dollar items. With more
powerful online procurement tools, the City now has the ability to get bids extremely
efficiently. Procurement cards also provide incentives and negotiated pricing when the City
uses them for purchases. Consideration should be made to lower the bidding threshold for
certain types of purchases in order to achieve the highest value added procurement program
possible. Other procurement related money saving ideas include purchasing manufacturer
refurbished items, floor models, certified pre-owned, and alternative product selection (higher
value, lower cost).
Municipal Code/Charter Updates – The City’s Municipal Code and Charter lay out the specific
terms in which the City must operate. Some areas of the code and Charter are very specific,
while other are more general, allowing for some flexibility to City staff when dealing with
unique situations. Cities must follow all federal and state laws and codes, but Charter cities
such as Chula Vista may impose stricter rules and requirements upon which the City is
governed. Some of these rules require greater resources to be spent in order to remain in
compliance as compared to more lenient state laws. A thorough review of the existing Charter
and Municipal Code may be reveal potential money saving opportunities that could be
recommended to Council for consideration.
POTENTIAL SOLUTIONS TO RESOLVE STRUCTURAL INFRASTRUCTURE DEFICIT
The City’s assets continue to age and will require additional repair and rehabilitation in the
coming decade and beyond. Measure P, passed in November 2016 will provide much needed
funding for a significant portion of the City’s Asset Management Program over the next ten years.
While Measure P does address a significant amount of deferred maintenance items, the
infrastructure needs of the City identified in the asset management exceed the funding anticipated
to be generated from Measure P. The City will need to continue to pursue additional funding
sources to address the City’s capital needs. Many of the solutions mentioned in the operating
section overlap into the infrastructure section. These include Public/Private Partnerships,
Competitive Purchasing, Use of One-Time Funds, and Service Levels.
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CONCLUSION
Based on projections within the LTFP, the City will be facing structural deficits in every year of the
LTFP. In the absence of identifying new revenues or reducing ongoing expenditures, the
structural deficits will lower the City’s unassigned (fund) balance. In order to preserve and
maintain the valuable resources and quality of life the citizens have enjoyed over the years, the
City will need to make a concerted effort to adopt several of the solutions mentioned above.
Proactive planning and a commitment to a fiscally sustainable service delivery model will be
required.
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MEASURE A
In November 2017, the City of Chula Vista engaged a research firm to conduct a public opinion
survey to identify the services and projects that residents were most interested in funding and to
obtain input on a potential half-cent general sales tax to fund the services. According to the public
survey, eight of the top ten items prioritized by the public were public safety related.
In December 2017, City staff presented the Public Safety Staffing Strategies Report to the City
Council. This report outlined staffing proposals for the Police and Fire Department that addressed
critical needs. The departments evaluated their operations and identified the gaps in not only
service levels, but also in the customer service experience for residents and businesses. After
discussions regarding the critical needs and funding options, the City Council directed the City
Manager to return with a proposal for Council consideration to place a half-cent sales tax measure
before the voters to fund public safety critical needs.
In February 2018, City staff presented the City Council with a ballot measure to consider for
placement to address public safety staffing on the ballot in June 2018. The measure would impose
a ½ cent transaction and use tax (sales tax) on retail sales within the City of Chula Vista. The tax
would commence on October 1, 2018. The tax would remain in place unless and until the voters
repealed it. Concurrent with the approval of placing the measure on the ballot, the City Council
adopted an Intended Public Safety Expenditure Plan for the anticipated revenues generated from
the measure. By doing so, the City Council expressed its intent to spend the sales tax revenues
exclusively on the critical staffing needs of the City's police and fire departments, including
necessary equipment.
In June 2018, the citizens of Chula Vista approved Measure A which enacted the ½ cent sales tax to
support public safety staffing. Measure A is to provide faster responses to emergency calls,
increase neighborhood police patrols, address homelessness, and improve firefighter and
emergency medical response, by generating an estimated $17 million annually for City services.
Measure A includes requirements for separate accounting of budgeting for revenues and
expenditures. It also requires creation of a Citizens' Oversight Committee ("COC"). The COC would
be responsible for reviewing and reporting on Measure A annual accounting and spending plans,
and compliance with those plans.
The Intended Public Safety Expenditure Plan (the “Plan”)
identifies two phases (as shown in the table to the right) to
address the staffing shortage in public safety. Phase I
outlines the most critical needs identified by the Police and
Fire Departments for the next 10 years. The total positions
identified by each department and the anticipated phase in
which the positions will be filled is shown in the table.
PUBLIC SAFETY CRITICAL NEEDS
Positions Phase I Phase II
Police
Sworn 29.0 14.0
Non Sworn 14.0 5.0
Total PD 43.0 19.0
Fire
Personnel 36.0 58.0
Total FD 36.0 58.0
Total Additional Staffing 79.0 77.0
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Phase I will be funded through revenues generated from Measure A. Funding to implement Phase
II is to be determined at a later date.
The following tables identify the timeline and proposed positions to be added by each department
during the implementation of Phase I of the Plan.
The Plan is intended to guide City expenditures consistent with the Measure A Ordinance. It does
not, however, constitute a binding legal commitment on the City Council to approve any of the
expenditures proposed within it. Provided that all proposed expenditures continue to be for
public safety critical needs including support staff and equipment needs as outlined in the
spending plan, the Plan may be updated or amended from time to time by City staff, or by action of
the City Council, in order to address changed priorities, standards and/or funding availability. The
Plan does not modify the terms of the sales tax measure. To the extent of any conflict between the
terms of the Plan and the sales tax measure, the terms of the sales tax measure shall govern.
Based on the projected costs and implementation timeline presented in Phase I of the Plan, staff
has developed a cash flow model to account for the revenues and expenditure of Measure A funds.
The following table illustrates the anticipated revenues and expenditures from FY 2019 to FY
2029. The cash flows include the following assumptions:
Revenues generated in FY 2019 represent collection of revenues for two quarters of the
Positions FY 19 FY 20 FY 21 FY 22 Total
Deputy Chief - 1.0 - - 1.0
Fire Captain - 4.0 4.0 - 8.0
Firefighter/Paramedic - 4.0 4.0 - 8.0
Firefighter 12.0 3.0 3.0 - 18.0
Public Education Specialist - 1.0 - - 1.0
Total Fire Personnel 12.0 13.0 11.0 0.0 36.0
Fire Department Phase I
Implementation By Fiscal Year
Positions FY 19 FY 20 FY 21 FY 22 Total
Peace Officers 4.0 3.0 5.0 4.0 16.0
Police Agents 1.0 2.0 3.0 2.0 8.0
Police Sergeants - 2.0 2.0 1.0 5.0
Total Sworn 5.0 7.0 10.0 7.0 29.0
Civlian Background Investigator 2.0 - - - 2.0
Community Services Officer - - 1.0 1.0 2.0
Detention Facilities Manager - - - 1.0 1.0
Police Comm. Systems Manager - - - 1.0 1.0
Police Dispatcher 2.0 3.0 2.0 - 7.0
Sr. Police Technology Specialist 1.0 - - - 1.0
Total non-Sworn 5.0 3.0 3.0 3.0 14.0
Total Police FTE Positions 10.0 10.0 13.0 10.0 43.0
Police Department Phase I
Implementation By Fiscal Year
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FY2019 City of Chula Vista General Fund Long-Term Financial Plan
26
fiscal year. Based on the initiation of the sales tax on October 1, 2018, the revenues will
actually be in place for three quarters of FY 2019. A budgetary adjustment to the projected
revenues and expenses will be made upon review by the COC for FY 2019.
Sales tax revenue projections include a two percent escalator each year beginning in FY
2021. Based on information provided by the City’s sales tax consultant, the City’s Long-
Term Financial Plan incorporates a one percent escalator each year for sale tax revenues
beginning in FY 2020. Upon review by the COC, an adjustment to the projected sales tax
revenues will be considered.
The Personnel Expenditures category includes all costs related to staff including salary,
retirement benefits, and health insurance costs.
The Other Expenditures category includes expenses items such as supplies, computers,
vehicles, funding for a temporary training facility, and City staff reimbursements.
Reimbursements for support staff include a five percent escalator each year beginning in
FY 2020.
Actual timing of hiring/filling of positions will vary depending upon recruitments.
Phase II of the Plan could move forward as the City’s economic base improves and major
transformational projects begin moving forward such as the Bayfront and University development
projects. Other funding options may also be considered in the future as part of the annual budget
process.
Intended Public Safety Spending Plan (Estimated Costs)
Est. One-half cent Sales Tax Revenues
Police Department Spending Plan
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
(2 Qtrs Only)
Beginning Police Department Funds Available -$ 1,778,073$ 5,980,069$ 7,388,597$ 6,818,276$ 6,278,744$ 5,529,139$ 4,531,274$ 3,444,878$ 2,122,363$ 570,947$
Estimated 1/2 cent Sales Tax Revenues 4,000,000$8,500,000$ 8,670,000$ 8,843,400$ 9,020,268$ 9,200,673$ 9,384,687$ 9,572,381$ 9,763,828$ 9,959,105$ 10,158,287$
Estimated Funds Available - Police Department 4,000,000$10,278,073$14,650,069$16,231,997$15,838,544$15,479,417$14,913,826$14,103,655$13,208,706$12,081,468$10,729,234$
Proposed Expenditures
PERSONNEL COSTS 1,407,567 3,517,414 6,250,577 8,652,752 9,045,149 9,417,393 9,830,523 10,186,646 10,593,107 10,995,122 11,374,296
OTHER EXPENDITURES 814,360 780,590 1,010,894 760,969 514,652 532,884 552,029 472,130 493,237 515,398 538,668
Total Police Department Proposed Expenditures 2,221,927$4,298,004$ 7,261,472$ 9,413,721$ 9,559,800$ 9,950,278$ 10,382,552$10,658,777$11,086,344$11,510,520$11,912,964$
Ending Police Department Available Funds 1,778,073$5,980,069$ 7,388,597$ 6,818,276$ 6,278,744$ 5,529,139$ 4,531,274$ 3,444,878$ 2,122,363$ 570,947$ (1,183,730)$
Fire Department Spending Plan
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
(2 Qtrs Only)
Beginning Fire Department Funds Available -$ 745,141$ 3,267,048$ 3,991,644$ 3,217,152$ 3,548,231$ 3,704,245$ 3,752,309$ 3,624,683$ 3,289,518$ 2,749,933$
Estimated 1/2 cent Sales Tax Revenues 4,000,000$8,500,000$ 8,670,000$ 8,843,400$ 9,020,268$ 9,200,673$ 9,384,687$ 9,572,381$ 9,763,828$ 9,959,105$ 10,158,287$
Estimated Funds Available for Fire Department 4,000,000$9,245,141$ 11,937,048$12,835,044$12,237,420$12,748,905$13,088,932$13,324,690$13,388,511$13,248,623$12,908,220$
Proposed Expenditures
PERSONNEL COSTS 2,009,627 4,738,706 7,297,798 7,652,411 8,004,980 8,340,827 8,712,227 9,054,062 9,430,466 9,806,495 10,142,164
OTHER EXPENDITURES 1,245,232 1,239,387 647,606 1,965,481 684,209 703,833 624,396 645,945 668,527 692,195 717,001
Total Fire Department Proposed Expenditures 3,254,859$5,978,093$ 7,945,404$ 9,617,892$ 8,689,189$ 9,044,660$ 9,336,623$ 9,700,006$ 10,098,993$10,498,690$10,859,165$
Ending Fire Department Available Funds 745,141$ 3,267,048$ 3,991,644$ 3,217,152$ 3,548,231$ 3,704,245$ 3,752,309$ 3,624,683$ 3,289,518$ 2,749,933$ 2,049,055$
Combined Police and Fire
Beginning Available Funds -$ 745,141$ 3,267,048$ 3,991,644$ 3,217,152$ 3,548,231$ 3,704,245$ 3,752,309$ 3,624,683$ 3,289,518$ 2,749,933$
Total Combined Revenues 8,000,000$17,000,000$17,340,000$17,686,800$18,040,536$18,401,347$18,769,374$19,144,761$19,527,656$19,918,209$20,316,574$
Total Combined Expenditures 5,476,786$10,276,098$15,206,876$19,031,613$18,248,989$18,994,938$19,719,174$20,358,783$21,185,337$22,009,210$22,772,129$
Ending Available Funds 2,523,214$9,247,117$ 11,380,241$10,035,428$9,826,975$ 9,233,384$ 8,283,583$ 7,069,561$ 5,411,881$ 3,320,880$ 865,324$
Phase I - Critical Needs Funding
Phase I - Critical Needs Funding
Total Phase I - Critical Needs Funding
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