HomeMy WebLinkAboutAgenda Packet 2019/05/21
May 21, 2019File ID: 19-0061
TITLE
DECLARATION OF VACANCY OF THE FOLLOWING SEAT, PURSUANT TO CHARTER SECTION 602 AND
MUNICIPAL CODE SECTION 2.25.105:
-COMMISSION ON AGING MEMBER JEANNINE NASH (AT-LARGE MEMBER SEAT), TERM EXP.
6/30/2019
RECOMMENDED ACTION
Council deem the seat vacant.
DISCUSSION
City Charter section 602(C) and Chula Vista Municipal Code (CVMC) section 2.25.105(A) requirethata
or commission seat become vacant, and be so declared by the City Council,when any board or
board
commission member is absent from three consecutive, regular meetings, unless the absence was excused
by a majority vote of the other members.
The City Clerk was notified of Commission on Aging member Jeannine Nash’s unexcused absences from
three consecutive, regular meetings. Details of the absences are provided in the attached memo.
Community Services staff have attempted to contact the member to discuss the situation but have been
unable to reach her.
Thismatter hasbeen agendized for Council to declare the seat vacant, as required by the Charter and CVMC
section 2.25.105(A)
Staff Contact: Leah Larrarte
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DATE:January 31, 2019
TO:City Clerk, Kerry K. Bigelow
FROM:Tiffany Kellbach, Commission on Aging Secretary
SUBJECT:Member Absence from Three Consecutive Meetings
City Clerk if a voting member misses three regular, consecutive meetings of the board or commission without being excused
by a majority
Jeannine Nash (Commission on Aging), missed the following three regular, consecutive meetings:
1.September 12, 2018
2.November 14, 2018
3.January 9, 2019
these meetings were not excused by the Commission on Aging, as reflected in the
official minutes of the meetings.
Our office has made multiple attempts to contact Commissioner Nash. We are requesting that the Council consider deeming
the seat vacated at its next available meeting.
May 21, 2019File ID: 18-0519
19-0281
TITLE
ORDINANCE OF THE CITY OF CHULA VISTA ACTING AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES
DISTRICT NO.14M-2 (EASTERN URBAN CENTER/MILLENIA), AUTHORIZING THE LEVY OF A
SPECIAL TAX IN SUCH COMMUNITY FACILITIES DISTRICT(SECONDREADINGAND ADOPTION)
RECOMMENDED ACTION
Council adoptthe ordinance.
SUMMARY
On March 26, 2019, City Council initiated proceedings for the formation of Community Facilities DistrictNo.
14M-2(“CFD No. 14M-2” or the “District”)by adoption of Resolutions 2019-036 and 2019-037. The
recommendedaction isthe next step in the proceedings to establish CFD No.14M-2. CFD No. 14M-2will
fund the maintenance and replacement of:(a) public roadway frontages and medians, public transit
facilities, and the pedestrian bridge over Eastlake Parkway (including landscaping, enhanced paving,
rodent control, trash receptacles, graffiti removal, etc.); (b) public urban parks (including
planting/irrigation, site amenities/features, athletic facilities, etc.); and (c) facilities that are directly related
to storm water detention and water quality control. The City has retainedthe services of Spicer Consulting
Group(SCG) as special tax consultant and Best, Best and Krieger, LLP (BBK) as legal counsel to provide
assistance during the proceedings.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California
Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under
Environmental
Section 15378 of the State CEQA Guidelines because the creation of government funding mechanism is not
considered a project; 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.
v.001 Page|1
DISCUSSION
Background
On January 13, 1998, Council adopted the “City of Chula Vista Statement of Goals and Policies regarding the
establishment of Community Facilities Districts” (the “Goals and Policies”). The approval of this document
ratified the use of CFDs as a public financing mechanism for (1) the construction and/or acquisition of
public infrastructure, and (2) the financing of authorized public services. Taxes levied by maintenance
districts, such as CFD No. 14M-2, are currently excluded from the 2% maximum tax criterion set forth in the
Goals and Policies.
On April 28, 1998, Council, acting under its Charter authority, enacted the “Chula Vista Community
Facilities District Ordinance” (the “Ordinance”). The Ordinance adopted the Mello-Roos Act with
modifications to accomplish the following: (1) incorporate all maintenance activities authorized by the
“Landscaping & Lighting Act of 1972” (the “1972 Act”); (2) include certain maintenance activities not listed
in the Mello-Roos Act or the 1972 Act; and (3) establish an operating reserve fund for open space districts.
Relationship with CFD No. 14M
On February 11, 2014, the City Council approved Resolution No. 2014-022 to form and establish
Community Facilities District (CFD) No. 14M (Eastern Urban Center/Millenia). CFD No. 14M (the “original
CFD”) was established to levy taxes to fund the maintenance and replacement of specified facilities listed in
the summary section of this agenda statement. The original CFD provided for two improvement areas.
Improvement Area 1 was coterminous with the boundary of the original CFD and provided for the
maintenance/replacement of:(a) public roadway frontages and medians, public transit facilities, and the
pedestrian bridge over Eastlake Parkway (including landscaping, enhanced paving, rodent control, trash
receptacles, graffiti removal, etc.); (b) public urban parks (including planting/irrigation, site
amenities/features, athletic facilities, etc.); and (c) facilities that are directly related to storm water
detention and water quality control. Improvement Area 2 was limited to the boundaries of the public urban
parks within the Eastern Urban Center/Millenia development (Millenia). Special taxes levied on
Improvement Area 2 were allocated to urban park facilities only. Millenia is currently under development
and the special tax is being levied pursuant to the adopted Rate and Method of Apportionment (the “RMA”)
for the original CFD.
During the annual administration of the originalCFD, City staff determined that a new residential product
type had been introducedwithin Millenia (i.e., “detached condominium”). Because this product type is not
defined in the Rate and Method of Apportionment (RMA) prepared for the original CFD, no special taxes
could be levied on it, potentially resulting in a budget shortfall for the original CFD. After convening a team
to complete a thorough consideration of all alternatives, the City determined that establishingan overlay
CFD was the preferredtaxing mechanism to accommodate the levy of special taxes on the new detached
condominium product type. During a review of the original CFD’s budget, the City determined that several
facilities have since been removed, reconfigured, or reduced in scope. The budget savings associated with
these facility changes fully mitigate the loss in special taxes due to the development of detached
condominiums in Millenia. Therefore, no special tax rate increases arenecessary for CFD No. 14M-2.
Description of CFDNo. 14M-2
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CFD No. 14M-2 will establish a new special tax rate for the “detached condominium” product (i.e., Detached
Residential Property) consistent with the benefit unit factors provided in the original CFD’s RMA. CFD No.
14M-2’s boundary map (Attachment 1) was designed to coincide with the limits of Improvement Area 1 of
the original CFD. However, certain areas were excluded as described below:
1.“Detached condominiums” permitted prior to CFD No. 14M-2 were excluded; and
2.Units currently occupied, or projected to be occupied prior to the adoption of CFD No. 14M-2, were
alsoexcluded.
Also, the five public urban parks included in Improvement Area 2 are not within the boundaries of CFD No.
14M-2. The City will remove CFD 14M-2 properties from the original CFD through recordation of a notice
of cessation of special tax for the original CFD. This action will remove the original CFD from title for the
impacted properties.
On March 26, 2019 the City adopted Resolution No. 2019-036 declaring its intention to establish CFD No.
14M-2 and to authorize the levy of a special tax. Resolution No. 2019-036 also directed the preparation of a
Community Facilities District Report (the “Special Tax Report”), which is contained in Attachment 2. At the
same hearing, the City approved Resolution No. 2019-037 adoptingthe CFD No. 14M-2 boundary map.
This boundary map was recorded on April 5, 2019 in the Office of the County Recorder (document 2019-
7000131, book 47, page 83).
CFD No. 14M-2will provide the necessary funding for the operation and maintenance of public
landscaping, storm water quality, walls, a trail, a pedestrian bridge, lighting, and park facilitiesby levying
an annual special taxwhich is collected from the property owners within CFD No. 14M-2in conjunction
with property taxassessmentor via direct billing. All expenses related to the district administration,
including levying and collecting the special taxes, are also funded from such special taxes.The following
sections provide additionaldetail on CFD 14M-2. Refer to the Special Tax Report (Attachment 2) for
further background information.
Area of Benefit
CFD No. 14M-2 encompasses a portion of the Millenia project, a 206-acre Urban Village located in the
southeasternportion of the City of Chula Vista. Millenia is currently being developed, and at buildout will
include up to 2,983 multi-family residential unitsand 3.487 million square feet of commercial uses,
consisting of office, hospitality, retail, and civic uses. Millenia will also accommodate a fire station (1.07
acres), a public school (6.55acres),and fivepublic urbanparks (10.91acres).The District covers
approximately 90.04acres (or approximately 40%) of the Millenia project. Of the 90.04acres, 53.71acres
(or approximately 60%) are owned by SLF IV-Millenia, the master developer of the Millenia project.
Taken together, the budgets for CFD No. 14M-2, CFD 14M Improvement Area 1, and CFD 14M Improvement
Area 2 will be consistent with the total budget of the original CFD, accounting for the reduction, removal,
and reconfiguration of certain facilities included in the original CFD budget, and the addition of $22,000 per
year in administrative expenses for CFD No. 14M-2.
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Land Use Types
Consistent with the original CFD, the CFD 14M-2 RMA establishes tax rates for Developed Property,
ApprovedProperty, Undeveloped Property, Taxable Property Owner Association Property, and Taxable
Community Purpose Facility (CPF) Property. Within the category of Developed Property, the proposed
RMA establishes four land use classes: (1) Apartment Property; (2) Attached Residential Property; (3)
Detached Residential Property; and (4) Non-Residential Property. The Attached Residential Property land
use class will apply to parcels classified as Multi-Family Property in the original CFD. The Detached
Residential Property land use class will apply to the “detached condominium” product previously
discussed.
Description of the Improvements to be Maintained
The District will fund the maintenance and replacement of:(a) public roadway frontages and medians,
publictransit facilities, and the pedestrian bridge over Eastlake Parkway (including landscaping, enhanced
paving, rodent control, trash receptacles, graffiti removal, etc.); (b) public urban parks (including
planting/irrigation, site amenities/features, athletic facilities, etc.); and (c) facilities that are directly related
to storm water detention and water quality control. The facilities to be maintained and replaced are
consistent with the Improvement Area 1 facilities, as described in the original CFD’s RMA. A complete list of
maintenance servicesis presented in Attachment 3.
Cost Estimate
The estimated annual budget for CFD No. 14M-2 is approximately $360,186, as summarized in Table 1
below.
Table 1
Annual
DescriptionBudget
Facility Maintenance$ 248,404
Facility Replacement$ 64,942
CFD Administration$ 22,000
Maintenance Reserve$ 24,840
Total Annual $360,186
Budget
Refer to Attachment 4for additional details on the District budget and the budget for CFD 14M
Improvement Areas 1 and 2.
Maximum Special Tax Rate
The maximum special tax rates for Developed Property in FY 2018-2019 are presented in Table 2 below.
Table 2
Land Use Maximum
TypeDescriptionSpecial Tax
1Apartment Property$206.82 per Dwelling Unit
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1
2Attached Residential Property$275.76 per Dwelling Unit
2
3Detached Residential Property$344.70 per Dwelling Unit
4Non-Residential Property$1,377.71 per Acre
In some instances,aDeveloped Property may contain more than one land use type (e.g. mixed-use
developments including a residential use above and a non-residential use). The maximum special tax that
may be levied shall be levied only on the residential component of a mixed-use project.
The maximum special tax for Approved Property and Undeveloped Property is$4,359.00per acre.
Developed Taxable Property Owner Association Property and Taxable CPF Property will be classified as
Non-Residential Property, while undeveloped Taxable Property Owner Association Property and Taxable
CPF Property will be classified as Undeveloped Property.
All proposed rates are consistent with and/or proportional to the current maximum special tax rates in
CFD 14M Improvement Area 1.
Collection of Taxes
The Method of Apportionment in the proposed RMA was designed to ensure taxes levied in Improvement
Area1 of the original CFD and CFD 14M-2 are consistent and proportional. An initial Overall Special Tax
Requirement will be calculated, equal to the Special Tax Requirement for CFD 14M Improvement Area1.
The Developed Properties in both CFD 14M Improvement Area1 and CFD 14M-2 will then be assessed
proportionately up to 100% of the Maximum Special Tax for Developed Properties. If additional funds are
necessary to meet the Special Tax Requirement, then Approved Property, Undeveloped Property, Taxable
Property Owner Association Property, and Taxable CPF Propertymay be taxed. In all cases, the levy for
each land use class will be proportional between CFD 14M Improvement Area1 and CFD 14M-2. An
example levy calculation is provided as Attachment 5.
Resolutionsand Ordinance
There are tworesolutions and one ordinance on tonight’s agenda, which, if adopted, will accomplish the
following:
The RESOLUTION OF FORMATION is the formal action of the City Council forming and establishing CFD No.
14M-2 and authorizing submittal of the levy of special taxes to the qualified electors of the District.
The RESOLUTION DECLARING SPECIAL ELECTION RESULTSis the action whereby the City Council
formally approves the results of a special election by qualified electors regarding the proposed levy of
special taxes.
The ORDINANCE AUTHORIZING THE LEVY OF SPECIAL TAX in which the City Council formally authorizes
the levy of special taxes on taxable properties located within CFD No. 14M-2 pursuant to the RMAfor the
District.
1
See Multi-Family Property in the original CFD.
2
New land use created with CFD 14M-2 to address “detached condominiums” constructed in Millenia project.
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DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Councilmembers and has found no property holdings
within1,000 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)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t
Code §87100, et seq.).
Staffis not independently aware, and has not been informed by any City Councilmember, of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
In the current year, all costs of formation of the District will be borne by the original CFDand the ongoing
administrationcosts will be funded by the special tax levy of CFD No. 14M-2. The City will recover the full
cost of staff time expended in district formation and administration activities in perpetuity, resulting in no
net fiscal impact to the General Fund or Development Services Fund.
ONGOING FISCAL IMPACT
In future years, the City will recover the full cost of staff time expended in administrativeactivities in
perpetuity, resulting in no net fiscal impact to the General Fund or Development Services Fund.
ATTACHMENTS
1.Recorded Boundary Map
2.Special Tax Report
3.Description of Services
4.Cost Estimate
5.Example Levy Calculation
Staff Contact: Scott Barker, Transportation Engineer, Development Services Department
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Attachment 3
Community Facilities District No. 14M-2(Eastern Urban Center/Millenia)
Description of Services
The types of services to be funded by special taxes levied within the District(“Services”) shall
includemaintenance and servicing of the following facilities and any administrative expenses
related thereto:
I. STREET FRONTAGE MAINTENANCE
Eastlake Parkway
Trees
Palms
Planting Areas/Irrigation/Recycled water
Rodent Control
Enhanced paving
Birch Road
Trees
Palms
Planting Areas/Irrigation/Recycled water
Rodent Control
Enhanced paving
Recycled Water Irrigation Meters
Back flow preventer inspection
Wireless for irrigation controller
Trash Receptacles
Bike rack
Benches
Bus Rapid Transit Facility
Palms
Planting Areas/Irrigation/Recycled water
Rodent Control
Decomposed Granite
Medians
Eastlake Pkwy (Birch to Hunte Parkway) -50%
Birch (I-125 to Eastlake Parkway) -100%
Pedestrian Bridge (over Eastlake Parkway)
Bus Stop
Trash receptacles
Maintenance
II. PARK MAINTENANCE (PUBLIC URBAN PARKS)
Frontages
Trees –shade
Palms
Planting Areas/Irrigation/Recycled water
Rodent Control
Recycled Water Irrigation Meters
Back flow preventer inspections
Wireless forirrigation controller
Enhanced paving
Porous pavers
Decomposed Granite
Uplighting
Decorative Lighting
Planting/Irrigation
Trees –shade
Trees –ornamental
Palms
Planting Areas/Irrigation/Recycled water
Sod/Irrigation/Recycled Water
Rodent Control
Recycled Water Irrigation Meters
Potable Water Irrigation Meters
Wireless for irrigation controller
Back flow preventer inspections
Hardscape
Seat Wall
Flatwork
Pedestrian paving (concrete and pavers)
Decomposed granite
Playground surfacing
Site Furniture
Bike Racks
Trash Receptacles/Collection
Dog Waste Bag Dispenser/Collection/Disposal
Benches
Picnic Tables
Moveable Tables and Chairs
Umbrellas
Decorative Lighting
Metalwork
Metal fence/gate
Site Amenities/Features
Fountain
Fountain –Interactive or large
Spray Park
SCADA Monitoring System
Signageand Wayfinding Elements
Sculpture and Art Elements
Playground Equipment
Overlook Platform
Tree House
Outdoor Theater
Regional Trail
Regional trail
Structures
Restrooms andMaintained storage
Gazebo andPavilion
Trellis, Overhead Structure
Athletic Facilities
Basketball Court
Tennis Court
III. BIORETENTION MAINTENANCE
Bioretention Basins
Inspection/Ongoing Maintenance
Replacement 3 times per 100 years
IV. STORM WATER MAINTENANCE
Wolf Canyon Detention Basin
Vegetation Removal
Silt Removal Maintenance
Silt Removal Screen Replacement
Engineer’s Inspection
Periodic Inspection and Maintenance
Poggi Canyon
Channel
Detention Basin
Birch Street Filters
Vactor Truck Replacement
For purposes of this description of the Services to be funded by the levy of Special Taxes within
the District, “maintenance” includes, but is not limited to, the furnishing of services and materials
for the ordinary and usual maintenance, operation, and servicing of any of the facilities, including:
(a) Repair, removal, or replacement of all or any part of any facilities.
(b) Providing for the life, growth, health, and beauty of landscaping, including cultivation,
irrigation, trimming, spraying, fertilizing, or treating for disease or injury.
(c) The removal of trimmings, rubbish, debris, silt, and other solid waste.
(d) The cleaning, sandblasting, and painting of walls and other facilities to remove or cover
graffiti.
(e) The elimination, control, and removal of rodents and vermin.
For purposes of this description of the Services to be funded by Special Taxes levied within the
District, “servicing” includes, but is not limited to, the furnishing of:
(a) Electric current or energy,gas, or other illuminating agent for any public lighting for
the facilities or for the lighting or operation of any other improvements related thereto.
(b) Water for the irrigation of any landscaping, the operation of any fountains, or the
maintenance of any other facilities.
For purposes of this description of the Services to be funded by the levy of Special Taxes within
the District, “administrative expenses” means the actual or estimated costs incurred by the City,
acting for and on behalf of the District as the administrator thereof, to determine, levy and collect
the Special Taxes within the District, including salaries of City employees and a proportionate
amount of the City’s general administrative overhead related thereto, and the fees of consultants
and legal counsel providing services related to the administration of the District; the costs of
collecting installments of the Special Taxes levied within the District; and any other costs required
to administer the Districtas determined by the City.It is expected that the services will be provided
by the City, either with its own employees or by contract with third parties, or any combination
thereof.
SECOND READING AND ADOPTION
ORDINANCE NO. _________
ORDINANCE OF THE CITY OF CHULA VISTA ACTING AS THE
LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 14M-2
(EASTERN URBAN CENTER/MILLENIA), AUTHORIZING THE LEVY OF
A SPECIAL TAX IN SUCH COMMUNITY FACILITIES DISTRICT
WHEREAS, the City Councilof the City of Chula Vista, California(the “City Council”),
has initiated proceedings, held a public hearing, conducted an election and received a favorable
vote from the qualified electors authorizing the levy of special taxes in a community facilities
district, all as authorized pursuantto the terms and provisions of the “Mello-Roos Community
Facilities Act of 1982,”being Chapter 2.5, Part 1. Division 2, Title 5 of the Government Code of
the State of California (the “Act”) and the City of Chula Vista Community Facilities District
Ordinance enacted pursuant to the powers reserved by the City of Chula Vista under Sections 3,
5 and 7 of Article XI of theConstitution of the State of California (the “Ordinance”) (the Act and
the Ordinance may be referred to collectively as the “Community Facilities District Law”). This
community facilities district shall hereinafter be referred to as Community Facilities District No.
14M-2(Eastern Urban Center/Millenia) (“CFD No. 14M-2”).
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA,
CALIFORNIA, ACTING AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES
DISTRICT NO. 14M-2(EASTERN URBAN CENTER/MILLENIA), DOES HEREBY
ORDAIN AS FOLLOWS:
SECTION 1.This City Council does, by the passage of this ordinance, authorize the
levy of special taxes on taxable properties located in CFD No. 14M-2pursuant to the Rate and
Method of Apportionment of Special Taxes as set forth in Exhibit “A” attached hereto and
incorporated herein by this reference (the “Rate and Method”).
SECTION 2.This City Council, acting as the legislative body of CFD No. 14M-2, is
hereby further authorized, by resolution, to annually determine the special tax to be levied within
CFD No. 14M-2 for the then current tax year or future tax years; provided, however, the special
tax to be levied shall not exceed the maximum special tax authorized to be levied pursuant to the
Rate and Method.
SECTION 3.The special taxes herein authorized to be levied, to the extent possible,
shall be collected in the same manner as ad valorem property taxes and shall be subject to the
same penalties, procedure, sale and lien priority in any case of delinquency as applicable for ad
valorem taxes; provided, however, CFD No. 14M-2may utilize a direct billing procedure for any
special taxes that cannot be collected on the County tax roll or may, by resolution, elect to collect
the special taxes at a different time or in a different manner if necessary to meet its financial
obligations.
SECTION 4.The special taxes authorized to be levied shall be secured by the lien
imposed pursuant to Sections 3114.5 and 3115.5 of the Streets and Highways Code of the State
of California, which lien shall be a continuing lien and shall secure each levy of the special taxes.
The lien of the special taxesshall continue in force and effect until the special tax ceases to be
60297.00055\\31935088.1 1
SECOND READING AND ADOPTION
levied by the City Council in the manner provided in Section 53330.5 of said Government Code.
SECTION 5.This Ordinance shall be effective thirty (30) days after its adoption.
Within fifteen (15) days after its adoption, the City Clerk shall cause this Ordinance to be
published in a newspaper of general circulation in the City pursuant to the provisions of Chula
Vista’s City Charter, Section 312(b).
Introduced at a regular meeting of the City Council of the City of Chula Vista, California,
on May 7, 2019;
Enacted at a regular meeting of the City Council of the City of Chula Vista, California,
held on the 7thday of May, 2019, by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
PREPARED BY:APPROVED AS TO FORM BY:
Kelly G. Broughton FASLAGlen R. Googins
Director of Developmental ServicesCity Attorney
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SECOND READING AND ADOPTION
EXHIBIT A
RATE AND METHOD OF APPORTIONMENT FOR
CITY OF CHULA VISTA
COMMUNITY FACILITIES DISTRICT NO. 14M-2
(EASTERN URBAN CENTER/MILLENIA)
A Special Tax of Community Facilities District No. 14M-2 (Eastern Urban Center/Millenia)
(“CFDNo. 14M-2”) of the City of Chula Vista shall be levied on all Taxable Property in CFD
No. 14M-2 and collected each Fiscal Year commencing in Fiscal Year 2019-2020 in an amount
determined through the application of the rate and method of apportionment of the Special Tax
set forth below. All such Taxable Property shall be taxed for the purposes, to the extent, and in
the manner herein provided. Taxable Property shall not be subject to the Special Taxes of CFD
No. 14M-2 until the lien of the special taxes of CFD No. 14M IA 1 (defined below) with respect
to such Taxable Property has been cancelled.
DEFINITIONS
The terms hereinafter set forth have the following meanings:
“‘A’ Map”shall mean a master final subdivision or parcel map, filed in accordance with the
SubdivisionMap Act (California Government Code Section 66410 et seq.) and the Chula Vista
Municipal Code, which subdivides the land or a portion thereof shown on a tentative map into
“super block” lots corresponding to units or phasing of combination of units as shown on such
tentative map and which may further show open space lot dedications, backbone street
dedications and utility easements required to serve such “super block” lots.
“Acre”or“Acreage”means the land area of an Assessor’s Parcel as shown on an Assessor’s
Parcel Map, or if the land area is not shown on an Assessor’s Parcel Map, the land area shown on
the applicable Final Subdivision Map, other final map, other parcel map,other condominium
plan, or functionally equivalent map or instrument recorded in the Office of the County
Recorder. In the event that parcel acreage information is not available from the sources
previously listed, San Diego County GIS data may be utilized. The square footage of an
Assessor’s Parcel is equal to the Acreage multiplied by 43,560.
“Act”means the Mello-Roos Community Facilities Act of 1982, as amended, being Chapter 2.5,
Part 1, Division 2 of Title 5 of the Government Code of the State of California.
“Administrative Expenses”means the actual or estimated costs incurred by the City, acting for
andon behalf of CFD No. 14M-2 as the administrator thereof, to determine, levy and collect the
Special Taxes within CFD No. 14M-2, including salaries and benefits of City employees and a
proportionate amount of the City’s general administrative overhead related thereto, and the fees
of consultants and legal counsel providing services related to the administration of CFD No.
14M-2; the costs of collecting installments of the Special Taxeswithin CFD No. 14M-2; and any
other costs required to administer CFD No. 14M-2 as determined by the City.
60297.00055\\31935088.1 A-1
SECOND READING AND ADOPTION
“Apartment Property” means a Dwelling Unit within a building comprised of attached
residentialDwelling Units available for rental by the general public, not for sale to an end user,
and under common management, as determined by the CFD Administrator.
“Approved Property” means all Assessor’s Parcels of Taxable Property: (i) that are included in
an‘A’ Map, excluding lettered lots thereon, or a Final Subdivision Map, excluding lettered lots
st
thereon, that were recorded prior to the March 1preceding the Fiscal Year in which the Special
st
Tax is being levied, and (ii) that have not been issued a building permit prior to the March 1
preceding the Fiscal Year in which the Special Tax is being levied.
“Assessor’s Parcel”means a lot or parcel shown in an Assessor’s Parcel Map with an assigned
assessor’s parcel number.
“Assessor’s Parcel Map”means an official map of the Assessor of the County designating
parcels by assessor’s parcel number.
“Attached Residential Property”means all Assessor’s Parcels of Developed Property for
whicha building permit has been issued for a residential structure consisting of two or more
residential Dwelling Units that share common walls, including, but not limited to, duplexes,
triplexes, townhomes, and condominiums, as determined by the CFD Administrator.
“CFD Administrator”means an official of the City, or designee thereof, responsible for
determiningthe CFD No. 14M-2 Special Tax Requirement and providing for the levy and
collection of the Special Taxes.
“CFD No. 14M”means Community Facilities District No. 14M (Eastern Urban Center/Millenia
established by the City of Chula Vista under the Act and the CFD Ordinance.
“CFD No. 14M IA 1”means Improvement Area No. 1 of Community Facilities District No.
14M(Eastern Urban Center/Millenia) established by the City of Chula Vista under the Act and
the CFD Ordinance.
“CFD No. 14M IA 1 RMA” means the Rate and Method of Apportionment set forth in the
Noticeof Special Tax Lien for CFD No. 14M IA 1 recorded in the Official Records of the San
Diego County Recorder on February 21, 2014, as Doc. #2014-0071300.
“CFD No. 14M IA 1 Special Tax Requirement” shall have the meaning given the term
“Improvement Area No. 1 Special Tax Requirement” in the CFD No. 14M IA 1 RMA.
“CFD No. 14M-2”means Community Facilities District No. 14M-2 (Eastern Urban
Center/Millenia) established by the City of Chula Vista under the Act and the CFD Ordinance.
“CFD No. 14M-2 Special Tax Requirement”means that amount calculated in Section D.
required in any Fiscal Year for CFD No. 14M-2 to: (i) pay the Operating FundRequirement; (ii)
pay any amounts required to establish or replenish the Reserve Fund to the Reserve Fund
Requirement; (iii) pay for reasonably anticipated delinquent Special Taxes within CFD No.
14M-2 based on the delinquency rate for Special Taxes levied in the previous Fiscal Year; less
(b) a credit for funds available to reduce the annual Special Tax levy, including the excess, if
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SECOND READING AND ADOPTION
any, in the Reserve Fund above the Reserve Fund Requirement and any amount remaining in the
Operating Fund that is available to pay the Operating Fund Requirement in such Fiscal Year.
“CFD No. 14M-2 Boundary Map” means a recorded map of theCFD No. 14M-2 which
indicates the boundaries of the CFD No. 14M-2.
“CFD Ordinance”meansthe City of Chula Vista Community Facilities District Ordinance, as
originallyenacted and as subsequently amended pursuant to the powers reserved by the City
under Sections 3, 5 and 7 of Article XI of the Constitution of the State of California
“City”means the City of Chula Vista.
“City Clerk” means the City Clerk for the City of Chula Vista or his or her designee.
“City Manager” means the City Manager for the City of Chula Vista or his or her designee.
“Community Purpose Facility Property”or“CPF Property” means allAssessors’ Parcels
whichare classified as community purpose facilities and meet the requirements of City of Chula
Vista Ordinance No. 2452.
“Council”means the City Council of the City of Chula Vista, acting as the legislative body of
the CFD No. 14M-2.
“County”means the County of San Diego, California.
“Detached Residential Property”means all Assessor’s Parcels of Developed Property for
whicha building permit has been or may be issued for purposes of constructing a detached
Dwelling Uniton an Assessor’s Parcel. Such Residential Unit does not or will not share a
common wall with another residential Dwelling Unit, as determined by the CFD Administrator.
“Developed Property”means all Taxable Property for which a building permit was issued prior
to the March 1st preceding the Fiscal Year in which the Special Tax is being levied.
“Dwelling Unit”means each separate residential dwelling unit that comprises an independent
facility separate from adjacent residential dwelling units.
“Final Subdivision Map”means a subdivision of property creating buildable lots by recordation
ofa final subdivision map or parcel map pursuant to the Subdivision Map Act (California
Government Code Section 66410 et seq.), or recordation of a condominium plan pursuant to
California Civil Code 4285, that creates individual lots for which building permits may be issued
without further subdivision and is recorded prior to March 1 preceding the Fiscal Year in which
the Special Tax is being levied.
“Fiscal Year”means the period starting July 1 and ending on the following June 30.
“Land Use Class”means any of the classes listed in Table 1.
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“Maximum Special Tax”means the maximum Special Tax, determined in accordance with
SectionC below, that may be levied in any Fiscal Year on any Assessor’s Parcel of Taxable
Property.
“Mixed-Use Property”means all Assessor’s Parcels that have been classified by the City to
allowboth Residential Property and Non-Residential Property uses on each such Assessor’s
Parcel. For an Assessor’s Parcel of Mixed-Use Property, only the Residential Land Use Class
thereon is subject to taxation pursuant to the provisions of Section C.
“Non-Residential Property”means all Assessor’s Parcels of Developed Property for which a
building permit(s) has been issued for a structure or structures for non-residential use.
“Operating Fund” means a fund that shall be maintained by the City for CFD No. 14M-2 for
each Fiscal Year to pay for the authorized maintenance services as described in CFD No. 14M-2
special tax report and Administrative Expenses.
“Operating Fund Requirement”means, for any Fiscal Year, an amount equal to the budgeted
costsfor CFD No. 14M-2. The budgetedcosts for CFD No. 14M-2 shall equal the budget costs
of park maintenance, landscape maintenance, street frontage maintenance, bio-retention
maintenance, storm water maintenance, and the maintenance, repair and replacement of the
facilities and improvements, which have been accepted and or maintained by the City during the
current Fiscal Year; plus the budgeted Administrative Expenses for the current Fiscal Year in
which Special Taxes are levied.
“Overall Special Tax Requirement”means that amount required in any Fiscal Year to be
includedin the CFD No. 14M-2 Special Tax Requirement and the CFD No. 14M IA 1 Special
Tax Requirement as determined in Section D.
“Property Owner Association Property”means anyproperty within the CFD No. 14M-2
boundaries that is owned by, or irrevocably dedicated as indicated in an instrument recorded with the
County Recorde r to, a property owner association, including any master or sub-association.
“Proportionately”means in a manner such that the ratio of the actual Special Tax levy to the
MaximumSpecial Tax is equal for all Assessor’s Parcels of Taxable Property within each Land
Use Class.
“Public Property”means any property within CFD No. 14M-2 boundaries that has provided
proofto the City prior to March 1st preceding the Fiscal Year in which the Special Tax is being
levied, that it is expected to be used for any public purpose and is owned by or dedicated to the
federal government, the State, the County, the City or any other public agency.
“Reserve Fund”means a fund that shall be maintained for CFD No. 14M-2 for each Fiscal Year
toprovide necessary cash flow for the first six months of each Fiscal Year, reserve capital to
cover monitoring, maintenance and repair cost overruns and delinquencies in the payment of
Special Taxes within CFD No. 14M-2 and a reasonable buffer to prevent large variations in
annual Special Tax levies within CFD No. 14M-2.
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“Reserve Fund Requirement”means an amount equal to up to 100% of the CFD No. 14M-2
Operating Fund Requirement for any Fiscal Year.
“Residential Property”means all Assessor’s Parcels of Developed Property classified as
ApartmentProperty, Attached Residential Property, or Detached Residential Property for which
a building permit(s) hasbeen issued for purposes of constructing one or more residential
Dwelling Units.
“Special Tax” means the Special Tax levied pursuant to the provisions of sections D and E
below in each Fiscal Year on each Assessor’s Parcel of Developed Property, Approved Property,
and Undeveloped Property in CFD No. 14M-2 to fund the CFD No. 14M-2 Special Tax
Requirement.
“State”means the State of California.
“Taxable CPF Property”means all CPF Property which is not exempt from the Special Tax
pursuant to Section F below.
“Taxable Property”means, all of the Assessor’s Parcels within the boundaries of CFD No.
14M-2that are not exempt from the Special Tax pursuant to law or as defined below under Tax-
Exempt Property.
“Taxable Property Owner Association Property”means all Property Owner Association
Property which is not exempt from the Special Tax pursuant to Section F below.
“Tax-Exempt Property”means an Assessor’s Parcel not subject to the Special Tax. Tax-
ExemptProperty includes: (i) Public Property, or (ii) Property Owner Association Property
excluding Taxable Property Owner Association Property, or (iii) Assessor’s Parcels of Taxable
CPF Property that is owned by a non-profit organization and has provided proof to the City prior
st
to the March 1preceding the Fiscal Year in which the Special Tax is being levied of the
organization’s non-profit status, or (iv) Assessor’s Parcels with public or utility easements
making impractical their utilization for other than the purposes set forth in the easement.
“Undeveloped Property”means, for each Fiscal Year, all Taxable Property not classified as
DevelopedProperty, Approved Property, Taxable Property Owner Association Property, or
Taxable CPF Property.
ASSIGNMENT TO LAND USE CATEGORIES
Each Fiscal Year using the definitions above, each Assessor’s Parcel within CFD No. 14M-2
be classified as Taxable Property or Exempt Property. In addition, each Assessor’s Parcel
shall
of Taxable Property shall be further classified as Developed Property, Approved Property,
Undeveloped Property, Taxable Property Owner Association Property, and Taxable CPF
Property.
Each Assessor’s Parcel classified as Developed Property shall be further assigned to a Land Use
Class as specified in Table 1. The Land Use Class of each Assessor’s Parcel of Residential
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Property or Mixed-Use Property shall be determined based on the records of the San Diego
County Assessor, or other such information provided by the City.
Taxable Property Owner Association Property and Taxable CPF Property shall be taxed as Non-
Residential Property when any such Assessor’s Parcel is classified as Developed Property. If
any such Assessor’s Parcel is undeveloped, it shall be classified as Undeveloped Property.
MAXIMUM SPECIAL TAX RATE
1.Developed Property
TABLE 1
MAXIMUM SPECIAL TAX FOR DEVELOPED PROPERTY
Land Use Maximum
ClassDescriptionSpecial Tax (FY 2018/19)
1Apartment Property$206.82 per Dwelling Unit
2Attached Residential Property$275.76 per Dwelling Unit
3Detached Residential Property$344.70 per Dwelling Unit
4Non-Residential Property$1,377.71 per Acre
Mixed-Use Property Land Use Classes
The Maximum Special Tax that may be levied on Mixed Use Property Assessor’s Parcel shall
only be levied on the Residential Property Land Use Class(es) located on that Assessor Parcel(s).
Sample Maximum Special Tax Calculation for Mixed Use Property
Underthe proposed example, assume that Assessor’s Parcel Number 1 is classified as a Mixed-
Use Property. Assessor’s Parcel Number 1 is a 2 Acre parcel that contains Non-Residential
Property consisting of 10,000 square feet of retail shops and Apartment Property consisting of 10
residential Dwelling Units. The following table shows what the expected annual Maximum
Special Tax would be for Assessor’s Parcel Number 1.
No. of Non-ResidentialResidential
AssessorResidentialPropertyPropertyTotal Annual
ParcelParcelDwellingMaximumMaximumMaximum
(1)
No.AcreageUnitsSpecial TaxSpecial TaxSpecial Tax
12.0010$0.00$2,068.20$2,068.20
(1)
The Maximum Special Tax is based upon the initial Maximum Special Tax rates as defined in Table 1.
2.Approved Property and Undeveloped Property
The Maximum Special Tax for Approved Property and Undeveloped Property shall be $4,359.00
per Acre.
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Annual Escalation of Maximum Special Tax
On each July 1, commencing on July 1, 2019, the Maximum Special Tax forCFD No. 14M-2 as
shown in Tables 1 above that may be levied on each Assessor’s Parcel of Taxable Property in
CFD No. 14M-2 shall be adjusted by a factor equal to the greater of, the positive percentage
change in the San Diego Metropolitan Area All Urban Consumer Price Index (All Items) for the
twelve-month period ending June 1 of the prior Fiscal Yearor 0%, provided the Maximum
Special Tax shall never be less than the amounts shown in Table1.
CALCULATION OF OVERALL SPECIAL TAX REQUIREMENT
PROPORTIONALITY
Each Fiscal Year, an Overall Special Tax Requirement for CFD No. 14M-2 and CFD No. 14M
IA1 shall be calculated initially as the same amount as the CFD No. 14M IA 1 Special Tax
Requirement would have been calculated prior to the creation of CFD No. 14M-2.
Then, for purposes of the levy of Special Taxes within CFD No. 14M-2, the amount of the CFD
No. 14M-2 Special Tax Requirement shall be an amount equal to the Overall Special Tax
Requirement less the amount of the levy of special taxes in CFD No. 14M IA 1 on Developed
Property at 100% of the Maximum Special Tax (as such terms are defined in the CFD No. 14M
IA 1 RMA).
If the amount of Developed Property Maximum Special Taxes that can be collected in that Fiscal
Year within CFD No. 14M-2 exceeds the CFD No. 14M-2 Special Tax Requirement, then the
levy on Developed Property in both CFD No. 14M IA 1 and CFD No. 14M-2 shall be reduced
Proportionately to the amount required to fund the Overall Special Tax Requirement.
If the amount of Developed Property Maximum Special Taxes that can be collected in that Fiscal
Year within CFD No. 14M-2 is less than the CFD No. 14M-2 Special Tax Requirement, then all
Approved Property in both CFD No. 14M IA 1 and CFD No. 14M-2 shall be taxed
Proportionately, up to 100% of the applicable Maximum Special Tax, as necessary to satisfy the
Overall Special Tax Requirement, and the CFD No. 14M-2 Special Tax Requirement shall
include such amount to be levied on Approved Property in CFD No. 14M-2.
If the combined amount of Developed Property and Approved Property Special Taxes that can be
collected in that Fiscal Year within both CFD No. 14M IA 1 and CFD No. 14M-2 is less than the
Overall Special Tax Requirement, then all Undeveloped Property in both CFD No. 14M IA 1
and CFD No. 14M-2 shall be taxed Proportionately, up to 100% of the Maximum Special Tax, as
necessary to satisfy the Overall Special Tax Requirement, and the CFD No. 14M-2 Special Tax
Requirement shall include such amount to be levied on Undeveloped Property in CFD No.
14M-2.
If the combined amount of Developed Property, Approved Property, and Undeveloped Property
Special Taxes that can be collected in that Fiscal Year within both CFD No. 14M IA 1 and CFD
No. 14M-2 is less than the Overall Special Tax Requirement, then all TaxableProperty Owner
Association Property and Taxable CPF Property in both CFD No. 14M IA 1 and CFD No. 14M-
2 shall be taxed Proportionately, up to 100% of the Maximum Special Tax, as necessary to
satisfy the Overall Special Tax Requirement, and the CFD No. 14M-2 Special Tax Requirement
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SECOND READING AND ADOPTION
shall include such amount to be levied on all Taxable Property Owner Association Property and
Taxable CPF Property in CFD No. 14M-2.
METHOD OF APPORTIONMENT OF THE SPECIAL TAX FOR CFD No. 14M-2
Commencing with Fiscal Year 2019-2020, and for each following Fiscal Year, the Council shall
levythe Special Tax in CFD No. 14M-2 at the rates established pursuant to steps 1 through 4
below so that the amount of the Special Tax levied equals the CFD No. 14M-2 Special Tax
Requirement as determined in Section D above. The Special Tax shall be levied each Fiscal
Year as follows:
First:The Special Tax shall be levied Proportionately on each Assessor’s Parcel of Developed
Property up to 100% of the applicable Maximum Special Tax for Developed Property;
Second: If additional monies are needed to satisfy the CFD No. 14M-2 Special Tax Requirement
after the first step has been completed, the Special Tax shall be levied Proportionately on each
Assessor’s Parcel of Approved Property at up to100% of the Maximum Special Tax for
Approved Property;
Third: If additional monies are needed to satisfy the CFD No. 14M-2 Special Tax Requirement
after the first two steps have been completed, the Special Tax shall be levied Proportionately on
each Assessor’s Parcel of Undeveloped Property at up to 100% of the Maximum Special Tax for
Undeveloped Property;
Fourth: If additional moneys are needed to satisfy the CFD No. 14M-2 Special Tax Requirement
after the first three steps have been completed, the Special Tax shall be levied Proportionately on
each Assessor’s Parcel of Taxable Property Owner Association Property and Taxable CPF
Property, at up to 100% of the Maximum Special Tax for Taxable Property Owner Association
Property or Taxable CPF Property, as applicable.
Notwithstanding the above, under no circumstances will the Special Tax levied against any
Assessor’s Parcel of Apartment Residential Property, Attached Residential Property, or Detached
Residential Property for which an occupancy permit for private residential use has been issued be
increased by more than ten percent annually up to the Maximum Special Tax as a consequence
of delinquency or default by the owner of any other Assessor’s Parcel within CFD No. 14M-2.
EXEMPTIONS
The CFD Administrator shall classify as Tax-Exempt Property (i) Assessor’s Parcels defined as
PublicProperty, (ii) Assessor’s Parcels defined as CPF Property that are owned by a non-profit
st
organization which provides proof to the City prior to March 1preceding the Fiscal Year in
which the Special Tax is being levied of the organization’s non-profit status, and (iii) Assessor’s
Parcels with public or utility easements making impractical their utilization for other than the
purposes set forth in the easement.
The CFD Administrator shall classify as Tax-Exempt Property within CFD No. 14M-2 those
Assessor’s Parcels defined as Property Owner’s Association Property or CPF Property provided
that no such classification would reduce the sum of all Taxable Property within CFD No. 14M-2
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SECOND READING AND ADOPTION
to less than 80.06 Acres. Assessor’s Parcels defined as Property Owner Association Property
and CPF Property that cannot be classified as Tax-Exempt Property will be classified as Taxable
Property Owner Association Property or Taxable CPF Property and shall be taxed as part of the
fourth step in Section D.
The CFD Administrator will assign tax-exempt status in the chronological order in which
property becomes exempt Public Property or CPF Property or Tax-Exempt Property Owner
Association Property. However, should an Assessor’s Parcel no longer be classified as Public
Property or CPF Property or Tax-Exempt Property Owner Association Property, its tax-exempt
status will be revoked.
Taxable Property Owner Association Property and Taxable CPF Property that is not exempt
from the Special Tax under this sectionshall be subject to the levy of the Special Tax and shall
be taxed Proportionately as part ofthe fourth step in Section D above, at up to 100% of the
applicable Maximum Special Tax for Taxable Property Owner Association Property and Taxable
CPF Property.
APPEALS
Any landowner or resident who pays the Special Tax and believes that the amount of the Special
Taxlevied on their Assessor’s Parcel is in error shall first consult with the CFD Administrator
regarding such error. If following such consultation, the CFD Administrator determines that an
error has occurred; the CFD Administrator may amend the amount of the Special Tax levied on
such Assessor’s Parcel. If following such consultation and action, if any by the CFD
Administrator, the landowner or resident believes such error still exists; such person may file a
written notice with the City Clerk of the City appealing the amount of the Special Tax levied on
such Assessor’s Parcel. Upon the receipt of any such notice, the City Clerk shall forward a copy
of such notice to the City Manager who shall establish as part of the proceedings and
administration of CFD No. 14M-2, a special three-member committee (the “Review/Appeal
Committee”). The Review/Appeal Committee may establish such procedures, as it deems
necessary to undertake the review of any such appeal. The Review/Appeal Committee shall
interpret this Rate and Method of Apportionment and make determinations relative to the annual
administration of the Special Tax and any landowner or resident appeals, as herein specified.
The decision of the Review/Appeal Committee shall be final and binding as to all persons.
MANNER OF COLLECTION
Special Taxes levied pursuant to Section D above shall be collected in the same manner and at
thesame time as ordinary ad valoremproperty taxes; provided, however, that the CFD
Administratormay directly bill the Special Tax, may collect Special Taxes at a different time or
in a different manner if necessary to meet the financial obligations of CFD No. 14M-2 or as
otherwise determined appropriate by the CFD Administrator.
TERM OF SPECIAL TAX
Taxable Property ofCFD No. 14M-2 shall remain subject to the Special Tax in perpetuity or
untilthe Council takes appropriate actions to terminate the Special Tax pursuant to the Act and
the CFD Ordinance.
60297.00055\\31935088.1 A-9
May 21, 2019File ID: 19-0114
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A FOURPARTY
AGREEMENTFOR THE PREPARATION OF A SPORTS COMPLEX FEASIBILITY STUDY BETWEEN THE CITY
OF CHULA VISTA, FLATROCK LAND COMPANY, LLC, HOMEFED OTAY LAND II, LLC AND SPORTS
FACILITIES ADVISORY, LLC
RECOMMENDED ACTION
Council adopt the resolution.
SUMMARY
In February 2017, the City entered into two Public Benefit Agreements(PBAs)with HomeFed
(representingits subsidiaries; Flat Rock Land Company, LLC, Otay Land Company, LLCand HOMEFED
VILLAGE III MASTER, LLC)to begin the analysis of a potential park land exchange. After reviewing a
number of technical studies on the potential park site in the Otay River Valley(Attachment 1), the next step
in the process is to prepare a Feasibility Study. In May 2018, a Request for Proposal(RFP) was circulated
for professional consultant services to prepare a Sports Complex Feasibility Study.After reviewing the
submittals and interviewing the top candidates, staff recommends that Council approve an agreement with
Sports Facilities Advisory, LLC for the preparation of the feasibility analysis. HomeFedwill fund all
consultant expenses associated with the preparation of the feasibility analysis.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed contract approval for compliance with
California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as
the
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. In addition, notwithstanding the foregoing,
the Director of Development Services has also determined that the activityqualifies for an Exemption
pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no
environmental review of contract approval is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
v.001 Page|1
DISCUSSION
On July 6, 2018, the City received proposals from seven (7) firms. The firms that submitted proposals and
stsare listed below (in alphabetical order):
the proposed co
FirmCost Proposal
AECOM$125,100
Conventions, Sports and Leisure (CS&L)$79,500
GreenPlay, LLC$89,999
Hunden Strategic Partners$88,000
Stone Planning LLC$129,595
Sports Facilities Advisory, LLC (SFA)$65,625
Victus Advisors LLC$49,950
On July 7, 2018, the City Manager approved the formation of the selection committee to review the
proposalsin accordance with CVMC Section 2.5.110 (C), that included the following members:
Tracy Lamb, Director of Community Services
Tiffany Allen, Assistant Director of DevelopmentServices
Scott Donaghe, Principal Planner, Development Services
Mark Caro, Landscape Architect, Development Services
Bob Penner, HomeFed
Theselection committee reviewed, evaluated and ranked the submitted written proposals subject to the
following criteria:
Proposed Services and Methodology
Responsiveness to Request
Project Cost
Experience Related to This Request
Client Reference Information
Basedon the above review by the selection committee, AECOM, CS&L and SFA were invited to interview.
The interviews were held on Monday, August 27, 2018 and Tuesday, September 4, 2018. The selection
committee interviewed and ranked the top three firms. The initial outcome of the interviews was a tie for
first place between AECOM and SFA, with CS&L coming in secondplace. Because of the significant
discrepancy in proposed costs, staff asked AECOM to review their proposal to identify any possible savings.
Staff also asked SFA to review their proposal and add a local architectural firm to the team.AECOM
reviewed their proposal and was able to reduce their proposed cost to $111,400. SFA added a local
architectural firm to their proposal for a new proposed cost of $73,125.
After an in-depth review of the finalists, the selection committee concluded that SFA should be ranked as
the number one preference based on the consultant’sunderstanding of the RFP, responsiveness to the
requestand their unique experience of not only planning facilities, but also managingsimilar sports
complex facilities throughout the country. Since their inception in 2003, SFA has served more than 1,000
communities by planning sports, recreation and events centers while keeping financing in mind.
Page|2
In addition to the negotiated base price of $73,125, staff hasincluded a 25% contingency fee($18,281.25)
should additional work be necessary and a maximum of $7,500 for travel, bringing the total “not to exceed”
amount of the contract to $98,906.25. These costs will be funded in full by HomeFed.
Staff recommends that Council adopt the resolution approving the consultant services agreement between
the City, FlatRock Land Company, LLC, HomeFedOtay Land II, LLC and Sports Facilities Advisors, LLC
(Attachment 2).
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council members and has found no property holdings
within1,000 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)(7) or (8), for purposes of the Political Reform Act (Cal. Gov’t
Code §87100, et seq.).
Staffis not independently aware, and has not been informed by any City Councilmember, of any other fact
that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
All costs incurred preparing and processing the contract for the feasibility studyand all supporting
documentswere funded by HomeFedvia a developer deposit account, resulting in no net impact to the
General Fund or the Development Services Fund. All consultant costs resulting from the agreement will be
borne by HomeFedvia a developer deposit account.
ONGOING FISCAL IMPACT
Allongoing City expenses, including staff time and consultant services will be borne by HomeFedvia a
deposit account, resulting in no net impact to the General Fund or the Development Services
developer
Fund. Upon completion of the study, no ongoing costs will be incurred as a result of this action. An analysis
of ongoing maintenance and operation costs associated with any future active recreational facilities
resulting from this analysis will be considered in conjunction with future approval of land acquisition
and/or facility construction.
ATTACHMENTS
1.Location Map
2.FourPartyAgreement
Staff Contact: Scott Donaghe, Principal Planner
Page|3
Site
Location
Not to Scale
Location Map
NORTH
Attachment 1
FourParty Agreement Between
City of Chula Vista,Flat Rock Land Company, LLC, Homefed Otay Land II, LLCand
Sports Facilities Advisory, LLC
For the Preparation of a Sports Complex Feasibility Study
1.Parties.
This agreement (Agreement), effectiveas of this _____ day of ____________, 2019 (the
, is between the City of Chula Vista (City), a municipal corporation of the State
of California, the entity designated on the attached Exhibit A as Consultant,i.e.,Sports
Facilities Advisory, LLC(SFA),whose business form and address are indicated on the attached
Exhibit A, Flat Rock Land Company, LLC and Homefed Otay Land II, LLCtheentities
collectively designated on the attached Exhibit A as Applicantswhose business formsand
addressesare indicated on the attached Exhibit A, and is made with reference to the following
facts:
2.Warranties and Representations.
2.1. Applicantswarrant that Applicants arethe ownersof land (Property)
commonly known as, or generally located as, described on Exhibit A, Paragraph 1, or have an
option or other entitlement to develop said Property.
2.2. Applicantsdesire to have a feasibility study completed onthe Property to determine
its potential for a sports complex as described on Exhibit A, Paragraph 2.
2.3. In order for the City to process the Applicantsrequest, Work of the general nature
and type described in Exhibit A, Paragraph 4, (Work) will need to be completed.
2.4. City does not presently have the in-housestaff or resources to process the request
within the time frame requested for review by the Applicants.
2.5. This Agreement proposes an arrangement by which theApplicantsshall retain, and
be liable for the costs of retaining, Consultant, who shall perform the services required of
Consultant by this Agreement solely to, and under the direction of, the City.
2.6. Additional facts and circumstances regarding the background for this Agreement are
set forth on Exhibit B.
3.Agreement.
NOW, THEREFORE, for valuable consideration, receipt of which is hereby
acknowledged,it is mutually agreed to by and between the City, Consultant, and Applicantsas
follows:
3.1.Employment of Consultant by Applicants.
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
Land II, LLC for the Preparation of a Sports Complex Feasibility Study
City Clerk Agreement No. ____________
Page1
Consultant is hereby engaged by the Applicants, not the City, and at Applicantssole cost
and expense, to perform to, and for the primary benefit of, City, and solely at direction, all
of the services described on the attached Exhibit A, Paragraph 4, entitled General Nature of
Consulting Services,(General Services), and in the process of performing and delivering said
General Services, Consultant shall also perform to and for the benefit of City all of the services
described in Exhibit A, Paragraph 5, entitled Detailed Scope of Work(Detailed Services), and
all services reasonably necessary to accomplish said General Services and Detailed Scope of
Work, and shall deliver such documents required (Deliverables) herein, all within the time
frames herein set forth, and in particular as set forth in Exhibit A, Paragraph 6, and if none are
set forth, within a reasonable period of time for the diligent execution of duties
hereunder. Consultant understands and agrees that time is of the essence for this Agreement.
The Consultant does hereby agree to perform said General and Detailed Services to and
for the primary benefit of the City for the compensation herein fixed to be paid by the
Applicants.
In delivering the General and Detailed Services hereunder, the Consultant shall do so in a
good, professional manner consistent with that level of care and skill ordinarily exercised by
members of the profession currently practicing under similar conditions and in similarlocations,
at its own cost and expense except for the compensation and/or reimbursement, if any, herein
promised, and shall furnish all of the labor, technical, administrative, professional and other
personnel, all supplies and materials, machinery, equipment, printing, vehicles, transportation,
office space and facilities, calculations, and all other means whatsoever, except as herein
otherwise expressly specified to be furnished by the City or Applicants, necessary or proper to
perform and complete the work and provide the Services required of the Consultant.
3.2.Compensation of Consultant.
Applicantsshall compensate Consultant for all services rendered by Consultant without
regard to the conclusions reached by the Consultant, and according to the terms and conditions
set forth in Exhibit C adjacent to the governing compensation relationship indicated by a
checkmarknext to the appropriate arrangement, by paying said amount to the City, within 30
days
3.3 of this Agreement and Exhibit C, if checked, and upon receipt of such payment by the City,
City shall promptly, pay said amount to the Consultant in accordance with the Bill Processing
provisions in Exhibit C, if checked,City is merely acting in the capacity as a conduit for
payment, and shall not be liable for the compensation unless it receives same from the
Applicants. Applicants shall not make any paymentsof compensation or otherwise directly to the
Consultant.
3.2.1. Additional Work. If the Applicants, with the concurrence of City,
determine that additional services (Additional Services)are needed from Consultant of the
type Consultant is qualified to render or reasonably related to the Services Consultant is
otherwise required to provide by this Agreement, the Consultant agrees to provide such
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Land II, LLC for the Preparation of a Sports Complex Feasibility Study
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Additional Services on a time and materials basis paid for by Applicantsat the rates set forth in
Exhibit C, unless a separate fixed fee is otherwise agreed upon in writing for said Additional
Servicesbetween the parties.
3.2.2. In the event that the City shall determine that Additional Services are
required to be performed above and beyond the scope of work herein provided, City will consult
with Applicantsregarding the Additional Services, and if thereupon the Applicantsfail or refuse
to arrange and pay for said Additional Services, the City may, at its option, suspend any further
request until the Applicantsdeposit the estimate of the costs of
theAdditional Services which the City determines is or may be required. Applicantsshall pay
any and all additional costs for the additional Services.
3.2.3. Reductions in Scope of Work. City may independently, or upon request
from Consultant, from time to time reduce the Services to be performed by the Consultant under
this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for
the purpose of negotiating a corresponding reduction in the compensation associated with said
reduction. Upon failure to agree, the Fixed Fee may be unilaterally reduced by the City by the
amount of time and materials budgeted by Consultant for the Services deleted.
3.3.Security for Payment of Compensation by Applicant.
3.3.1. Deposit. As security for the payment of Consultant by Applicants,
Applicantsshall, upon execution of this Agreement, deposit the amount indicated on Exhibit C
as Deposit Amountwith the City, the conditions of such deposit being as indicated on Exhibit
C and as herein below set forth:
3.3.1.1Other Terms of Deposit.
3.3.1.1.1. All interest earned on the Deposit Amount, if any, shall
accrue to the benefit of, and be used for suchpurposesas determined by the City. City may, in
lieu of deposit into a separate bank account, separately account for said deposit in one or more of
its various bank accounts, and upon doing so, shall proportionately distribute to the Deposit, the
average interest earned during the period on its general fund.
3.3.1.1.2. Any unused balance of Deposit Amount, including any
unused interest earned, shall be returned to theApplicantsnot later than 30 days after the
termination of this Agreement and any claims resulting therefrom.
3.3.1.1.3. Applicantsshall be notified within 30 days after of the
use of the Deposit in any manner. Nothing herein shall invalidate use of the Deposit in the
manner herein authorized.
3.3.1.1.4. At such time as City shall reasonably determine that
inadequate funds remain on Deposit to secure future compensation likely due Consultant or City,
City may make demand of Applicantsto supplement said Deposit Amount in such amount as
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Land II, LLC for the Preparation of a Sports Complex Feasibility Study
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City shall reasonably specify, and upon doing so, Applicantsshall, within 30 days pay said
amount (Supplemental Deposit Amount) to City. Said Supplement Deposit Amount or Amounts
shall be governed by the same terms governing the original Deposit.
3.3.2. Withholding of Processing. In addition to use of the Deposit as security, in
order to secure the duty of Applicantsto payConsultant for Services rendered under this
Agreement, City shall be entitled to withhold processing of Applicantsrequest upon a breach of
Applicantsduty to compensate Consultant.
4.Non-Service Related Duties of Consultant.
4.1.1Insurance.Required Insurance. Consultant must procure and maintain, during the
period of performance of Required Services under this Agreement, and for twelve months after
completion of Required Services, the policies of insurance described on the attached Exhibit A,
Section 10
Required Insurance shall also comply with all other terms of this Section.
4.1.2Deductibles 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.
4.1.3Standards for Insurers. Required Insurance must be placed with licensed insurers
or better, or, if insurance is placed with a surplus lines insurer, insurer must be listed on the State
of California List of El
Compensation Fund is also acceptable.
4.1.4Subcontractors. Consultant must include all sub-consultants/sub-contractors as
insureds under its policies and/or furnish separate certificates and endorsements demonstrating
separate coverage for those not under its policies. Any separate coverage for sub-consultants
must also comply with the terms ofthis Agreement.
4.1.5Additional Insureds. Applicants, 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 A, Section 10or as
The general liability additional insured
ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude Products/Completed
Operations coverage.
4.1.6
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,
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officials, employees, or volunteers is wholly separate from the insurance provided by Consultant
and in no way relieves Consultant from its responsibility to provide insurance.
4.1.7No Cancellation. No Required Insurance policy may be canceled during the
City by certified mail, return receipt requested. Prior to the effective date of any such
cancellation Consultant must procure and put into effect equivalent coverage(s).
4.1.8
Subrogation in favor of the City for each Required Insurance policy under this Agreement. In
addition, Consultant waives any right it may have or may obtain to subrogation for a claim
against City.
4.1.9Verification of Coverage. Prior to commencement of any work, Consultant shall
furnish City with original certificates of insurance and any amendatory endorsements necessary
to demonstrate to City that Consultant has obtained the Required Insurance in compliance with
notice
shall impose no obligation or liability of any kind upon the company, its agents, or
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.
4.1.10Claims 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.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-
completion ofthe work required by this Agreement.
d.A copy of the claims reporting requirements must be submitted to the City
for review.
4.1.11Not a Limitation of Other Obligations. Insurance provisions under this section
shall not be construed to limit the Con
Indemnity.
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4.1.12Additional Coverage. To the extent that insurance coverage provided by
Consultant maintains higher limits than the minimums appearing in Exhibit A,Section 10City
requires and shall be entitled to coverage for higher limits maintained.
4.2Reserved.
4.3.Public Statements.
All public statements and releases to the news media shall be the responsibility of the
City and the Applicants. The Consultant shall not publish or release news items, articles or
present lectures on the Project, either during the course of the study or after its completion,
except on written concurrence of the City and Applicants.
4.4.Communication to Applicants.
Consultant shall not communicate directly to the Applicantsexcept in the presence of the
City, or by writing an exact copy of which is simultaneously provided to City, except with the
express consent of City. The Consultant may request such meetings with the Applicantsto
ensure the adequacy of Services performed by Consultant.
5.Non-Compensation Duties of the Applicants.
5.1.Documents Access.
The Applicantsshall provide to the Consultant, through the City, for the use by the
Consultant and City, such documents, or copies of such documents requested by Consultant,
within the possession of Applicantsreasonably useful to the Consultant in performing the
Services herein required of Consultant, including but not limited to those described in Exhibit A,
Paragraph 7.
5.2.Property Access.
erty access agreement, the Applicantsshallgrant
permission to the City and Consultant to enter and access the Property, to take any borings, make
any tests, conduct any surveys or reconnaissance necessary to deliver the Services of Consultant,
subject tothe approval of the Applicantswhich shall not be unreasonably denied. Consultant
shall promptly repair any damage to the subject property occasioned by such entry and shall
indemnify, defend, and hold the City and Applicants, and their agents, and employees harmless
from all loss, cost, damage, expenses, claims, and liabilities in connection with or arising from
any such entry and access.
5.3.Communication to Consultant.
Applicantsshall not communicate directly to the Consultant except in the presence of the
City, or by writing an exact copy of which is simultaneously provided to City, except with the
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express consent of City. The Applicantsmay request such meetings as they desire with the
Consultant to ensure the adequacy of services performed by Consultant.
6.Administrative Representatives.
Each party designates the individuals (Administrators) indicated in Exhibit A, Paragraph
8, as said contract administrator whois authorized by said party to represent them in the
routine administration of this Agreement.
7.Conflicts of Interest.
7.1.Consultant is Designated as an FPPC Filer.
If Consultant is designated on Exhibit A, Paragraph 9, as an FPPC filerConsultant is
Consultantfor the purposes of the Political Reform Act conflict of interest and
disclosure provisions, and shall report itseconomic interests to the City Clerk on the required
Statement of Economic Interests in such reporting categories as are specified in Paragraph 9 of
Exhibit A, or if none are specified, then as determined by the City Attorney.
7.2.Decline to Participate.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not
make, or participate in making or in any way attempt to use position to influence a
governmental decision in which Consultant knows or has reason to know Consultant has a
financial interest other than the compensation promised by this Agreement.
7.3.Search to Determine Economic Interests.
Regardless of whether Consultant is designated as an FPPCFiler, Consultant warrants
and represents that Consultant has diligently conducted a search and inventory of
economic interests, as the term is used in the regulations promulgated by the Fair Political
Practices Commission, and has determinedthat Consultant does not, to the best of
knowledge, have an economic interest which would conflict with duties under this
Agreement.
7.4.Promise Not to Acquire Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant further
warrants and represents that Consultant will not acquire, obtain, or assume an economic interest
during the term of this Agreement which would constitute a conflict of interest as prohibited by
the Fair Political Practices Act.
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7.5.Duty to Advise of Conflicting Interests.
Regardless of whether Consultant is designated as an FPPC Filer, Consultant further
warrants and represents that Consultant will immediately advise the City Attorney if Consultant
learns of an economic interest of which may result in a conflict of interest for the
purpose of the Fair Political Practices Act, and regulations promulgated thereunder.
7.6.Specific Warranties Against Economic Interests.
Consultant warrants and represents that neither Consultant, nor immediate
family members, nor employees or agents (Consultant Associates) presently have
any interest, directly or indirectly, whatsoever in the property which is the subject matter of the
Project, or in any property within 10 radial miles from the exterior boundaries of the property
which is the subject matter of the Project, or (Prohibited Interest).
Consultant further warrants and represents that no promise of future employment,
remuneration, consideration, gratuity or other reward or gain has been made to Consultant or
Consultant Associates by Applicants or by any other party as a result of
performance of this Agreement. Consultant promises to advise City of any such promise that
may be made during the term of this Agreement, or for 12 months thereafter.
Consultant agrees that Consultant Associates shall not acquire any such Prohibited
Interest within the term of this Agreement, or for 12 months after the expiration of this
Agreement.
Consultant may not conduct or solicit any business for any party to this Agreement, or for
any third party whichmay be in conflict with responsibilities under this Agreement.
8.Default of the Consultant for Breach.
ThisAgreement may be terminated by the City for default if the Consultant breaches this
Agreement or if the Consultant refuses or fails to pursue the Services under this Agreement or
any phase of the Sevices with such diligence which would assure its completion within a
reasonable period of time. Termination of this Agreement because of a default of the Consultant
shall not relieve the Consultant from liability of such default.
9.Right to Terminate Payment for Convenience, Documents.
9.1.Notwithstanding any other section or provisionof this Agreement, the City shall
have the absolute right at any time to terminate this Agreement or any Services to be performed
pursuant to this Agreement.
9.2.In the event of termination of this Agreementby the City in the absence of default
of the Consultant, the City shall pay the Consultant for the reasonable value of the Services
actually performed by the Consultant up to the date of such termination, less the aggregate of all
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
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sums previously paid to the Consultant for Services performed after execution of this Agreement
and prior to its termination.
9.3.The Consultant hereby expressly waives any and all claims for damage or
compensation arising under thisAgreement, except as set forth herein, in the event of such
termination.
9.4.In the event of termination of this Agreement, and upon demand of the City, the
Consultant shall deliver to the City, all field notes, surveys, studies, reports, plans, drawings and
all other materials and documents prepared by the Consultant in performance of this Agreement,
and all such documents and materials shall be the property of the City; provided however, that
the Consultant may retain copies for their own use and the City shall provide a copy, at
Applicantscost, of all such documents to the Applicants.
9.5. Applicantsshall have no right to terminate Consultant, and shall not exercise any
control or direction over work.
10.Administrative Claims Requirement and Procedures.
No suit shall be brought arising out of this Agreement against the City unless a claim has
first been presented in writing and filed with the City and acted upon by the City in accordance
with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, the provisions
of which are incorporated by this reference as if set fully set forth herein.
11.Hold Harmless and Indemnification.
11.1.1Consultant to Indemnify City-General.To the maximum extent allowed by law,
Consultant shall protect, defend, indemnify and hold harmlessApplicants,City, its elected and
and against any and all claims, demands, causes of action, costs, expenses, (including reasonable
liability, loss, damage or injury, in law or equity, to property or
persons, including wrongful death, in any manner arising out of or incident to any alleged acts,
omissions, negligence, or willful misconduct of Consultant, its officials, officers, employees,
agents, and contractors, arising out of or in connection with the performance of the Required
Services, the results of such performance, or this Agreement. This indemnity provision does not
include any claims, damages, liability, costs and expenses arising from the sole negligence or
willful misconduct of the Indemnified Parties. Also covered is liability arising from, connected
with, caused by or claimed to be caused by the active or passive negligent acts or omissions of
the Indemnified Parties which may be in combination with the active or passive negligent acts or
omissions of the Consultant, its employees, agents or officers, or any third party.
11.1.2Modified 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
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
Land II, LLC for the Preparation of a Sports Complex Feasibility Study
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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.
11.1.3
Section 11
and allsuits, 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 11, Consultant shall
pay and satisfy any judgment, award or decree that may be renderedagainst one or more of the
Indemnified Parties for any and all related legal expenses and costs incurred by any of them.
11.1.4.
obligations under this Section 11shall not be limited to insurance proceeds, if any, received by
the Indemnified Parties, or by any prior or subsequent declaration by the Consultant.
11shall in no way limit, modify or
gations or duties under this Agreement.
11.1.5.Enforcement Costs. Consultant agrees to pay any and all costs
Indemnified Parties incur11.
11.1.6der this Section 11shall survive the
termination of this Agreement.
11.2.Applicantsto Indemnify City re. Compensation of Consultant.
Applicantsagree to defend, indemnify and hold the City harmless against and from any
and all claims, losses, damages, expenses or expenditures of City, including its elected officials,
officers, employees, agents, or representatives of the City (City Indemnitees), in any way
resulting from or arising out of the refusal to pay compensation as demanded by Consultant for
the performance of Services required by this Agreement.
12.Business Licenses.
Applicantsagree to obtain a business licensesfrom the City and to otherwise comply
with Chula Vista Municipal Code, Title 5.Applicantsfurther agree to require Consultant to
obtain such business license and to comply with Chula Vista Municipal Code, Title 5.
13.Miscellaneous.
13.1.Consultant not authorized to Represent City.
Unless specifically authorized in writing byCity, neither Consultant nor Applicantsshall
have authority to act as agent to bind City to any contractual agreements whatsoever.
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13.2.Notices.
All notices, demands or requests provided for or permitted to be given pursuant to this
Agreementmust 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 for the parties in Exhibit A.
13.3.Entitlement to Subsequent Notices.
No notice to or demand on the parties for notice of an event not herein legally required to
be given shall in itself create the right in the parties to any other or further notice or demand in
the same, similar or other circumstances.
13.4.Integration.
This Agreement, together with any other written document referred to or contemplated
herein, embody the entire Agreement and understanding between the parties relating to the
subject matter hereof. Neither this Agreement nor any provision hereof may be amended,
modified, waived or discharged except by an instrument in writing executed by the party against
which enforcement of such amendment, waiver or discharge is sought.
13.5.Capacity of Parties.
Each signatory and party hereto hereby warrants and represents to the other party that it
has legal authority and capacity and direction from its principal to enter into thisAgreement; that
all resolutions or other actions have been taken so as to enable it to enter into this Agreement.
13.6.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 the federal or state courts located in San Diego County, State of California, and if applicable,
the City of Chula Vista, or as close thereto as possible. Venue for this Agreement and
performance hereunder, shall be the City of San Diego.
13.7.Modification.
No modification or waiver of any provision of this Agreement shall be effective unless
the same shall be in writing and signed by the parties hereto, and then shall be valid only in the
specific instance and for the purpose for which given.
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13.8.Counterparts.
This Agreement may be executed in more than one counterpart, each of which shall be
deemed to be an original but all of which, when taken together shall constitute but one
instrument.
13.9.Severability.
In the event that any provision of this Agreement shall for any reason, be determined to
be invalid, illegal, or unenforceable in any respect, the parties hereto shall negotiate in good faith
and agree to suchamendments, modifications, or supplements to this Agreement or such other
appropriate action as shall, to the maximum extent practicable in light of such determination,
implement and give effect to the intentions of the parties as reflected herein.
13.10.Headings.
The captions and headings in this Agreement are for convenience only and shall not
define or limit the provisions hereof.
13.11.Waiver.
No course of dealing or failure or delay, nor the single failure or delay, or the partial
exercise of any right, power or privilege, on the part of the parties shall operate as a waiver of
any rights herein contained. The making or the acceptance of a payment by either party with
knowledge of the existence of a breach shall not operate or be construed to operate as a waiver of
any such breach.
13.12.Remedies.
The rights of the parties under this Agreement are cumulative and not exclusive of any
rights or remedies which the parties might otherwise have unless this Agreement provides to the
contrary.
13.13.No Additional Beneficiaries.
Despite the fact that the required performance under this Agreement may have an effect
upon persons not parties hereto, the Parties specifically intend no benefit therefrom, and agree
that no performance hereunder may be enforced by any person not a party to this Agreement.
Notwithstanding the foregoing, this is a fourparty agreement and the City is an express third
party beneficiary of the promises of Consultant to provide Services paid for by theApplicants.
14.Ownership, Publication, Reproduction and Use of Material.
All reports, studies, information, data, statistics, forms, designs, plans, procedures,
systems and any other materials or properties produced under this Agreement shall be the sole
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and exclusive property of City. No such materials or properties produced in whole or in part
under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in
the United States or in any other country without the express written consentof City. City shall
have unrestricted authority to publish, disclose (except as may be limited by the provisions of the
Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any
such reports, studies, data, statistics, forms or other materials or properties produced under this
Agreement.
15.Entire Agreement.
This Agreement supersedes any and all other agreements, either oral or writtenwith
respect to the subject matter contained herein.
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Signature Page To
the Agreement Between
City of Chula Vista,Sports Facilities Advisory, LLC, Flatrock Land Company, LLC, and
Homefed Village III Master, LLC
For the Preparation of a Sports Complex Feasibility Study
(Page 1 of 2)
NOW THEREFORE, the Parties hereto, having read and understood the terms and
conditions of this Agreement, do hereby express their consent to the terms hereof by setting their
hand heretoas of the Effective Date.
City of Chula Vista
By:____________________________
Mary Casillas Salas, Mayor
Attest:
___________________________
Kerry K. Bigelow, MMC, City Clerk
Approved as to Form:
___________________________
Glen R. Googins, City Attorney
Consultant: Sports Facilities Advisory, LLC
By: *
Title:
*Signatory to Provide Company Signature Authorization
J:\\Attorney\\MichaelSh\\LandOfferAgts\\PBA-ParksFeasibilityAgt\\Agreements\\4PartyConsultAgrmnt-ParksFeasibilty-SFAFlatrockHomeFedIII-4.4.19-RevFinal.doc
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Signature Page To
the Agreement Between
City of Chula Vista, Sports Facilities Advisory, LLC, Flatrock Land Company, LLC, and
Homefed Village III Master, LLC
For the Preparation of a Sports Complex Feasibility Study
(Page 2 of 2)
Applicants:
Flat Rock Land Company, LLC
By: *
Title:
Homefed Otay Land II, LLC
By: *
Title:
*Signatory to Provide Company Signature Authorization
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
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Exhibit A
Effective Date: The Agreement shall take effect upon full execution of the Agreement, as of the
Effective Date stated on page 1 of the Agreement.
City: City of Chula Vista
276 Fourth Avenue
Chula Vista, CA 91910
Consultant: Sports FacilitiesAdvisory, LLC
Business Form of Consultant:
( ) Sole Proprietorship
( ) Partnership
() Corporation
(X) Limited Liability Company
Address: 600 Cleveland Street, Suite 910
Clearwater, FL 33755
(727) 474-3845
Applicant: Flat Rock Land Company, LLC
Business Form of Applicants:( ) Sole Proprietorship
( ) Partnership
( ) Corporation
(X) Other: A DelawareLimited Liability Company
Address:1903 Wright Pl, Suite 220
Carlsbad, CA 92008
Applicant:Homefed Otay Land II, LLC
Business Form of Applicants:( ) Sole Proprietorship
( ) Partnership
( ) Corporation
(X) Other: A DelawareLimited Liability Company
Address:1903 Wright Pl, Suite 220
Carlsbad, CA 92008
1. Property (Commonly known address or General Description):
The approximate 100-acre site is generally located east of Heritage Roadand south of the Otay
Riverwithin Planning Area 20 West of the Otay Ranch Planned Community.
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2. Project Description (Project):
Preparation of a Sports Complex FeasibilityStudy to determine the viability of the site to house a
Sports Complex.
3. Entitlements applied for: N/Aat this time.
4. General Nature of Consulting Services (General Services):Preparation of a Feasibility Study
5. Detailed Scope of Work (Detailed Services):
The City would like to understand the market demand, feasibility, and economic benefit of a
-purpose sports complex. SFAwill preparea market demand analysis,
economic feasibility study, and competitive analysisthrougha comprehensive five(5) step
processas detailed below:
Step 1: Kick-off Meeting, Existing Data Review, & Local Market Study
To begin the project, SFA will organize a formal kick-off conference telephone call with the
appropriateCity staff. This conference callwill include:
Introductions of all key team members from City and from SFA
Review of the project goals, scope of work, and major steps within the scope.
Data collection discussion. In this discussion, we will discuss available data, data that can
be obtained through online research, and information about the market that the City will
share based on itsknowledge, presence, and experience.
Project communication next steps, ongoing meeting schedule, set dates onsite
Coming out of the kick-off call, SFA will review and assess any available existing parks
operating and program information the City has from existing operations. This may include
program descriptions, schedules, organization/staffing information, operations resources, user
group information and other pertinent data from existing events and programs in the market.
Additionally, any information on the hotel inventory, occupancy rates, and other economic
factors for Chula Vista tourism will be provided to assist in the subject feasibility analysis.
In addition to reviewing the City data, SFA will conduct localmarket research to further
understand local opportunities and constraints. The custom market research will include a drive
time analysis of demographic factors like population and density, income and spending, growth
trends, etc. Additionally, SFAwill considermarket specific sports and recreation factors such as
participation trends, an analysis of existing service providers, and a review of local
organizations. This competitive analysis will include a detailed list of existing service providers,
events,and rates that impact the potential project.
This market research will include a comprehensive list of all of the major sports tourism facilities
and events in the region that could potentially impact the success of a new multi-use sports
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
Land II, LLC for the Preparation of a Sports Complex Feasibility Study
City Clerk Agreement No. ____________
Page17
center development in Chula Vista. SFA will focus on both the immediate community need and
the larger regional/national opportunity. This level of research will be used to facilitate an
effective onsite strategy meeting in Step 2.
Deliverable#1:
SFA will produce a summary report of local market researchand a list of facilities to tour during
theBusiness Development Planning & Strategy Session.
Step 2: Market/Site Tour, Business Development Planning & Strategy Session, Community
Engagement
In Step 2, SFA will send 2-3 resources onsite for two (2)days of meetings. This includes a site
tour, Business Development Planning & Strategy Session (BDPS), and engagement of local
stakeholders. This BDPSwill help to provide insights into the project history, scope, needs,
purpose, goals, and constraints. This step will also assist SFA in learning potential contributions
from program users and partners.
The BDPS will encompass discussions related to existing programs, project goals, and plans for
site development, as well asand not limited to,topics such as the business model, the program
plan, design/space considerations, alliances with sports and other user groups, utilization,
funding/financing, competition analysis and market share, and the management and staffing plan.
While in the market,SFA will visit complimentary and competitive facilities in the greater San
Diegoarea. This may include municipal, privately owned, and school facilities in the area. As a
result, SFAwill provide an overview and assessment of competition and the resulting market
opportunity.SFAwill also use this as an opportunity to uncover local partnership opportunities and
identify potential stakeholders for the process. Additionally, SFA will tour potential sites for the
project while in the market. This information will be used by SFA to make site selection
recommendations in the Feasibility Report.
During the BDPS, SFA will facilitate discussions around funding strategies and opportunities. This
will help SFA to formulate the right capital strategy and engage the right financial partners to
analyze potential finance solutions for Chula Vista. While in the market SFA will engage with the
community to gather valuable input from local user groups. This will be accomplished through a
series ofstakeholder and town hall meetings to give the local public a structured forum for input,
control messaging, and to level-set expectations for what the development may/may not include.
Stakeholders may include schools, sports organizations, health/wellness organizations, and other
groups that may support the up-front capitalization and/or ongoing success of the project.
Deliverable#2:Completion of site tour, BDPS, stakeholder and community meetings.
Step 3: Detailed Financial Forecast (Pro Forma) & Economic Impact Analysis
In this step, SFA will complete more in-depth research/analysis to produce a 5-year cash flow
will be a detailed, institutional-grade financial forecast, that can be
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
Land II, LLC for the Preparation of a Sports Complex Feasibility Study
City Clerk Agreement No. ____________
Page18
used to support decision-making and financing. The pro forma will serve as the core deliverable
from which the economic impact and feasibility report isdeveloped.
The pro forma will provide insight into the financial potential of the project and will include, but
not be limited to,projections related to construction and start-up costs, revenues/expenses by
product/program, and facility utilization. The financial forecast will also address the wide range
of key performance indicators and contributing factors that influence operations and the overall
financial performance of the facility. This includes local programming for parks and recreation
use and local sports organizations, in addition to the regional opportunity for tournaments and
events.
The pro forma will provide detailed financial details related to and based on:
The ideal business model to best meet the definitions of success for thefacility
Realistic and/or recommended debt-to-equity mix and debt service
Right-sized program spaces and space requirements
Construction and start-up costs based on recent, comparable projects
Recommended parking
Revenue by product/program
Direct/variable costs (Cost of Goods Sold)
Facility and operating expenses
Management and staffing model
Utilization projections
In addition to the operational forecast, SFA will project the economic impact of the facility on an
annual basis.Economic impact is defined as new off-site spending that will occur in the market
as a result of tournaments and events held at the facility.This information will beused to project
economic activity from out-of-the City visitors who would not be in the market but for the events
that will be held at the complex.
The results, primarily quantified as room nights generated and direct spending, will beused by
elected officials and private developers alike to understand the impact that the venue will have
on the lodging, dining, retail, entertainment, and transportation industries as well as on the tax
base of the municipalities that benefit from new spending.
onomic impact projections will be developed based on projections for tournaments and
events throughout the pro forma and reflective of several key drivers of economic impact,
including:
Number of Events
Number of Teams
Number of Participants
Number of Affiliated Spectators
Percent of Participants and Affiliated Spectators from outside Chula Vista
Length of Stay
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
Land II, LLC for the Preparation of a Sports Complex Feasibility Study
City Clerk Agreement No. ____________
Page19
Average Daily Rate (ADR)
Average Daily Expenditures (ADE)
Through this financial analysis, SFA will quantify the demand for local hotel rooms andother
accommodations in the market. Additionally, will demonstrate the tax impact to
the City and local businesses.
Once the proforma and economic impact are complete, SFA will work with the City on
determining potential funding strateg
structure, project size, potential partners, net operating income, and other critical factors,SFA
will provide no less than two (2) potential funding solutions as requested in the Request for
Proposal (RFP). These funding strategies will be used as assumptions in the pro forma and have
a narrative overview in the Feasibility Study.
Deliverable #3: Completion of ProFormaand Economic Impact Draft Report.
Step 4: Feasibility Study
The Feasibility Study will serve as a narrative summary addressing the opportunity to execute
the tournament model and the financial viability of the project. The report will be prepared with
the understanding that it will be used for City decision-making and may become part of a
package used to secure funding for the new complex. This report will be developed for the eye of
a broad audience including sophisticated funding sources. The report will include:
Executive summary
Market overview
Demographic and socioeconomic overview
Drive-time analysis
Sports participation analysis
Existing service provider overview
Facility program and construction cost estimate
Overview of programs, products, and revenue streams
Summary of financial performance
Funding Strategy Overview
Conclusion with key findings and next steps
Specifically, this detailed report will provide an overview of the market, ideal facility program,
finance solutions, and financial outcomes for the project. Once complete, SFA will travel back to
themarket to deliver a detailed presentation of findings and recommended next steps. This may
include conversations around design, financing, development, and future operations. Important to
note, SFA has the ability to support project finance for municipalities. This includes, but is not
limited to, standing behind theirwork and research with real-world results, aligning
stakeholders, sourcing capital, identifying creative structures, and securing letters of intent for
usage.
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
Land II, LLC for the Preparation of a Sports Complex Feasibility Study
City Clerk Agreement No. ____________
Page20
Deliverable #4: Completion of draft Feasibility Study.
Step 5: Site Planning & Complex Design
To supplement the SFA Team, SFAhaspartnered with DeLorenzo International to support site
planning and conceptual design. DeLorenzo International is a landscape architectural and land
planning firm located just minutes away from Otay Ranch in Old Town, San Diego. To support
site planning, SFA will provide DeLorenzo International with a detailed program plan for highest
and best use of space. DeLorenzo will attend all four(4)public/agency meetings to ensure a
consistent vision for the program throughout the process and to provide local knowledge and
design input.
DeLorenzo International will provide two (2) to three (3) initial programming studies for the
sports complexillustrating the scale layout of the proposed site amenities including fields,
parking, restrooms/concessions, and other ancillary uses. The team will utilize the Applicant
conceptual grading plan in AutoCAD as the plan base. DeLorenzo International will revise each
of the concepts to refine the site plan and incorporate SFA, agency, and public comments.
The final Feasibility Report will include conceptual site plans for the project and
recommendations related to enhancing facility design. DeLorenzo will be involved in the final
presentation to help determine the best next steps for the City of Chula Vista.
Deliverable #5Completion of Final Feasibility Study,ProForma, and Economic Impact
Analysiswith conceptual site plans and recommendations related to enhancing facility design.
6. Schedule, Milestone, Time-Limitations within which to Perform Services.
Date for Commencement of Consultant Services:
(X) Same as Effective Date of Agreement
Dates or Time Limits for Delivery of Deliverables:
DeliverableDue Date
Deliverable from Step 1Week 3
Deliverable from Step 2Week 5
Deliverable from Step 3Week 10
Deliverable from Step 4Week 12
Deliverable from Step 5Week 12
7. Documents to be provided by Applicants to Consultant:
() site plans (X) grading plans () architectural elevations () project description .
() other: Proposed General Plan Amendment revised text, including new/revised
policies and supporting graphics.
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
Land II, LLC for the Preparation of a Sports Complex Feasibility Study
City Clerk Agreement No. ____________
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8. Contract Administrators.
City:Scott Donaghe
276 Fourth Avenue, BuildingC
Chula Vista, CA 91910
Applicants:Flat Rock Land Company, LLC
1903 Wright Pl, Suite 220
Carlsbad, CA 92008
Homefed Otay Land II, LLC
1903 Wright Pl, Suite 220
Carlsbad, CA 92008
Consultant:Eric Sullivan
Sports FacilitiesAdvisory, LLC
600 Cleveland Street, Suite 910
Clearwater, FL 33755
9. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest
Code:
(X) Not Applicable.Not an FPPC Filer.
( )Category No. 1.Investments and sources of income.
()Category No. 2.Interests in real property.
( )Category No. 3.Investments, interest in real property and sources of income
subject to the regulatory, permit or licensing authority of
the department.
( )Category No. 4.Investments inbusiness entities and sources of income
which engage in land development, construction or the
acquisition or sale of real property.
( )Category No. 5.Investments in business entities and sources of income of
the type which, within the past two years, have contracted
with the City of Chula Vista (Redevelopment Agency) to
provide services, supplies, materials, machinery or
equipment.
( )Category No. 6.Investments in business entities and sources of income of
the type which, within the past two years, have contracted
with the designated department to provide
services, supplies, materials, machinery or equipment.
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
Land II, LLC for the Preparation of a Sports Complex Feasibility Study
City Clerk Agreement No. ____________
Page22
( )Category No. 7. Business positions.
10.Insurance Requirements:
Type of InsuranceMinimum AmountForm
General Liability: $2,000,000 per occurrence for Insurance Services Office Form
Including products and bodily injury, personal injury CG 00 01
completed operations, (including death), and property
personal and damage. If Commercial General
advertising injuryLiability 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 *Must be primary and must not
or Blanket AI Endorsement for exclude Products/Completed
Applicants and City* Operations
Waiver of Recovery Endorsement
Automobile Liability$1,000,000 per accident for bodily Insurance Services Office Form
injury, including death, and CA 00 01
property damageCode 1-Any Auto
Code 8-Hired
Code 9-Non-Owned
$1,000,000 each accident
Compensation $1,000,000 disease policy limit
$1,000,000 disease each employee
Waiver of Recovery Endorsement
Professional Liability $1,000,000 each occurrence
(Errors & Omissions) $2,000,000 aggregate
Other Negotiated Insurance Terms: ENTER ANY ADDITIONAL
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
Land II, LLC for the Preparation of a Sports Complex Feasibility Study
City Clerk Agreement No. ____________
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Exhibit B
(Reserved)
Additional Recitals
WHEREAS, ________________________________________________________; and
WHEREAS, _______________________________________________________.
(End of Recitals)
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
Land II, LLC for the Preparation of a Sports Complex Feasibility Study
City Clerk Agreement No. ____________
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Exhibit C
Compensation Scheduleand Deposit: Terms and Conditions.
() Single Fixed Fee Arrangement.
For performance of all of the General and Detailed Services of Consultant as herein
required, Applicant shall pay a single fixed fee in the amounts and at the times or milestones set
forth below:
Single Fixed Fee Amount:
*For purposes of payment the first draft ________________shall completely address and
analyze all issues identified in the detailed scope-of-
to the satisfaction of theAssistant City Manager/Development Services Directoror designee.
Assistant City Manager/Development Services
Directoror designee determines that a complete draft ELAdocument has been submitted.
**Pursuant Assistant City Manager/Development Services
Directoror designee in his discretion independently or if the Applicant, with the concurrence of
the City determines that additional services are needed from the Consultant, from time to time,
may negotiate additional services to be performed by the Consultant under this Agreement in
order to cover unforeseen issues that may be identified during the preparation of the
_______________. The cost of additional services in connection with the ________________
shall not exceed 30% of the total contract amount ($___________).
(X) Phased Fixed Fee Arrangement.
For the performance of each phase or portion of the General and Detailed Services of
Consultant as are separately identified in Exhibit C, under the category labeled Phased Fixed
Fee Arrangement, Applicantsshall pay the fixed fee associated with each phase of Services, in
the amounts and at the times or milestones set forth herein below (Phase Fixed Fee
Arrangement). Consultant shall not commence Services under any Phase, and shall not be
entitled to the compensation for a Phase, unless Applicants, in consultation with the City,shall
have issued a notice to proceed to Consultant as to said Phase.
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
Land II, LLC for the Preparation of a Sports Complex Feasibility Study
City Clerk Agreement No. ____________
Page25
Deliverable No. and Description of Milestone AmountApprox. %
Event
1Execution of Contract$12,187.5017%
2Deliverable from Step 1$12,187.5017%
3Deliverable from Step 2$12,187.5017%
4Deliverable from Step 3$12,187.5017%
5Deliverable from Step 4$12,187.5017%
6Deliverable from Step 5$12,187.5017%
Consultant Services Total$73,125.00100%
25% Contingency Feefor tasks as determined $18,281.25
Development Services
Maximum Reimbursable for Travel$7,500.00
Maximum Services and Fees$98,906.25
( ) Time and Materials
For performance of the General and Detailed Services of Consultant as herein required,
Applicants shall pay Consultant for the productive hours of time and material spent by
Consultant in the performance of said Services, at the rates or amounts set forth herein below
according to the following terms and conditions:
( )Not-to-Exceed Limitation on Time and Materials Arrangement
Notwithstanding the expenditure by Consultant of time and materials in excess of said
Maximum Compensation amount, Consultant agrees that Consultant will perform all of
the General and Detailed Services herein required of Consultant for $_______________
including all Materials, and other reimburseables(MaximumCompensation).
( ) Limitation without Further Authorization on Time and Materials Arrangement
At such time as Consultant shall have incurred time and materials equal to
__________________ (Authorization Limit), Consultant shall not be entitled to any
additional compensation without further authorization issued in writing and approved by
the City Council. Nothing herein shall preclude Consultant from providing additional
Services at own cost and expense.
Category of EmployeeHourly
of ConsultantNameRate
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
Land II, LLC for the Preparation of a Sports Complex Feasibility Study
City Clerk Agreement No. ____________
Page26
Principal-in-Charge
Sr. Associate
Sr. Associate
Associate
Analyst
Support Staff
*Other individuals from the Consultant firm may be substituted in place of the nameslisted
solely at the discretion of the Assistant City Manager/Development Services Director.
( ) Hourly rates may increase by 6% for services rendered after _________.
Materials Separately Paid For by Applicant
Cost or Rate
( ) MaterialsNA
Reports
Copies
( ) TravelNA
( ) PrintingNA
( ) PostageNA
( ) DeliveryNA
( ) Long Distance Telephone ChargesNA
() Other NA
Deposit
(X)Deposit Amount: $98,906.25As agreed by the Applicants, 100% ofthe Deposit
($98,906.25) is to be made prior to execution of this Agreement. In addition, Applicants
agree to deposit, within 10 days if City requests to do so, a sum for anyAdditional
Services which shall separately be paid for by the Applicantspursuant to Section 3.2.1.
()Use of Deposit to Pay Consultant.
Notwithstanding the sole duty and liability of Applicant to pay Consultant, if this
paragraph is checkedupon Citys receipt of billing by Consultant, and determination by City
in good faiththat Consultants billing is proper, a judgment for which Applicant agrees to hold
City harmless and waive any claim against City, City shall pay Consultants billing from the
amount of the Deposit. If Applicant shall protest the propriety of a billing to City in advance of
date for the payment of said bill by Applicant in making its good faith determination of
propriety.
( )Use of Deposit as Security Only; Applicants to Make Billing Payments.
Upon determination by City made in good faith that Consultant is entitled to
compensation which shall remain unpaid by Applicant 30 days after billing, City may, at its
option, use the Deposit to pay said billing.
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
Land II, LLC for the Preparation of a Sports Complex Feasibility Study
City Clerk Agreement No. ____________
Page27
() Bill Processing:
A. Consultants Billing to be submitted for the following period of time:
() Monthly
( ) Quarterly
(X) Other:Milestone
B.Day of the Period for submission of Billing:
() First of the Month
( ) 15th Day of each Month
( ) End of the Month
(X) Other:Upon Completion of Milestone
C.Account Number: 60800260
D.Security for Performance
() Performance Bond, $____________
() Letter of Credit, $____________
() Other Security:
Type: _____________________
Amount: $_________________
(X)Retention. If this space is checked, then notwithstanding other provisions
to the contrary requiring the payment of compensation to the Consultant
sooner, the City shall be entitled to retain, at their option, the following
Retention Percentage until the City determines that the Retention Release
Event, listed below, has occurred:
(X) Retention Percentage: Ten Percent (10%)
() Retention Amount: $_______
Retention Release Event:
(X)Completion of All Consultant Services to the satisfaction of the
Assistant City Manager/Development Services Director
() Monthly
( ) Quarterly
() Other: In accordance with themilestones provided herein.
FourParty Agreement Between City of Chula Vista, Sports Facilities Advisory, LLC, Flat Rock Land Company, LLCandHomefed Otay
Land II, LLC for the Preparation of a Sports Complex Feasibility Study
City Clerk Agreement No. ____________
Page28
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTAAPPROVING A FOURPARTYAGREEMENT
FOR THE PREPARATION OF A SPORTS COMPLEX
FEASIBILITY STUDY BETWEEN THE CITY OF CHULA
VISTA, FLATROCK LAND COMPANY, LLC, HOMEFED
OTAY LAND II, LLC AND SPORTS FACILITIES ADVISORY,
LLC
WHEREAS, on February 7, 2017, the City Council adopted Resolution Nos. 2017-024
and 2017-025 approving Public Benefit Agreements (the “PBAs”) between the City of Chula
Vista (the “City”) and Flat Rock Land Company, LLC, Otay Land Company, LLC, and
HOMEFED VILLAGE III MASTER, LLC(the “HomeFedSubsidiaries”); and
WHEREAS, pursuant to the PBAs, the HomeFedSubsidiaries would provide the City
with an opportunity and constraints analysis regarding certain parcels located in Otay Ranch
Planning Area 20 to determine at a threshold level if those parcels can feasibly accommodate a
regional active community park; and
WHEREAS, pursuant to the PBAs, if the HomeFed Subsidiaries determined that there
were no fatal flaws identified in the opportunity and constraints analysis, then the City and the
HomeFedSubsidiaries shall enter into a Four Party Agreement with a consultant to prepare a
feasibility analysis, to be paid for by the HomeFedSubsidiaries; and
WHEREAS, the required feasibility analysis will determine the amount of park land and
types of facilities needed to support tournament level sports fields and other related types of
activities and any other matter determined needed by the City to make a determination under the
PBAs regarding the viability of a regional active recreational community park on those certain
parcels in Otay Ranch Planning Area 20; and
WHEREAS, in May 2018, the City issued a Request for Proposal (RFP)for professional
consultant services to prepare a Sports Complex Feasibility Analysis; and
WHEREAS, the City received and evaluated seven (7) proposals from consultant teams
interested in providing such services; and
WHEREAS, after the City completed its evaluationof the proposals, three (3) teams were
invited to interviewin August and September 2018; and
WHEREAS, based uponthe proposals received and the interviews conducted, staff
recommends selecting Sports Facilities Advisory, LLC (the “Consultant”)to provide such
services; and
WHEREAS, the consultant selection process has been conducted in accordance with
Section 2.56.1109(C) of the Chula Vista Municipal Code; and
C:\\Users\\legistar\\AppData\\Local\\Temp\\BCL Technologies\\easyPDF 8\\@BCL@200E2C3C\\@BCL@200E2C3C.docx
Resolution No.
Page 2
WHEREAS, Consultant warrants and represents that it is experienced and staffed in a
manner such that it can deliver the services required of Consultant to City.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it approves the FourPartyAgreement for preparation of a Sports Complex Feasibility
Study between the City of Chula Vista, FlatRock Land Company, LLC, HomeFedOtay Land II,
LLC and Sports Facilities Advisory, LLC, inthe form presented, with such minor modifications
as may be required or approved by the City Attorney, a copy of which shall be kepton file in the
Office of the City Clerk,and authorizesand directsthe Mayorto executethesame.
Presented byApproved as to form by
Kelly G, Broughton, FALSAGlen R. Googins
Director of Development ServicesCity Attorney
May 21, 2019File ID:19-0301
TITLE
A.RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A SECOND
AMENDMENTTO THE 2014-2017 MOU EXTENSION BETWEEN THE CITY AND THE CHULA VISTA
POLICE OFFICERS ASSOCIATION TO PROVIDE FOR THE CONTINUATION OF EMPLOYER PAID
MEMBER CONTRIBUTIONS(EPMC)BENEFITON THE CONDITION, AS PROVIDED FOR IN THE SECOND
AMENDMENT, THAT ELIGIBLE TIER I CVPOA REPRESENTED EMPLOYEES PAY THE FULL COST OF
SAID BENEFIT
B.RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA SETTING EMPLOYER PAID
MEMBER CONTRIBUTIONS (EPMC) FOR TIER 1 EMPLOYEES IN CLASSIFICATIONS REPRESENTED BY
THE CHULA VISTA POLICE OFFICER’S ASSOCIATION AND RESCINDING THAT PORTION OF
RESOLUTION 2019-073ENDING EPMC EFFECTIVE JUNE 7, 2019 BY SETTING THE CITY PAYMENT AT
ZERO PERCENT
RECOMMENDED ACTION
Council adopt the resolution.
SUMMARY
In February 2017, the City and the Chula Vista Police Officer’s Association (“CVPOA”) extendedthe expiring
2014-2017 MOU betwe
en the City and CVPOA (referred to herein as “2014-2017 MOU Extension”).
In June 2017, the City and CVPOA entered into an amendment (“MOU Amendment”) to 2014-2017 MOU
Extension. The MOU Amendment provided for either the termination ofthe Employer Paid Member
Contributions(“EPMC”) benefit by the first full pay period of May 2019 or its continuation subject to
payment of the full cost for the EPMC benefit by eligible Tier I CVPOA represented employees. After
meeting and conferring in good faith, the City and CVPOA have tentatively agreed to a second amendment
(“Second Amendment”) to the 2014-2017 MOU Extension to continue the EPMC benefit whereby eligible
Tier I represented CVPOA employees will pay the full cost of saidbenefit.
To effectuate the Second Amendment, this item seeks: (1) approval of the Second Amendment, (2) to
rescind that portion of Council’s prior resolution (Resolution 2019-073) to end EPMC on June 7, 2019; and
(3) as required by CalPERS, a resolution to report the value of EPMC at 9% (as was agreed upon in prior
MOU’s with CVPOA).
v.001 Page|1
ENVIRONMENTAL REVIEW
Environmental Notice
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act
StateGuidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is
required.
Environmental Determination
The Director of Development Services has reviewed the proposed activity for compliance with the
CaliforniaEnvironmental 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
Pursuant to Article 2.18 of the 2014-2017 MOU (as extended) between the City and CVPOA, eligible Tier I
represented employees receive a nine percent (9%) Employer Paid Member Contribution
CVPOA
(authorized pursuant to Government Code section 20691) towards their CalPERS retirement.
Correspondingly, eligible Tier I CVPOA represented employees pay9% toward optional benefits on the
employer side pursuant to Government Code section 20516.
In 2017, the City and CVPOA entered into an amendment to extend the 2014-2017 MOU between the City
and CVPOA (“2014-2017 MOU Extension”). Thereafter,the City and CVPOA entered into an amendmentto
the 2014-2017 MOU Extension that providedthat EPMC would be removed effective the first full pay
period of May 2019 (which is May 10, 2019) unless CVPOA notified the City and entered into a LOU by no
later than April1, 2019 to maintain this benefit. The CVPOA notified the City on March 27, 2019 of their
desire to continue EPMC butdid not enter into the required LOU (specifying the cost and term of the
benefit) by April 1, 2019. To continue negotiations, City Council approved Resolution 2019-073 which, in
part, maintained the “status quo”and extended the ending of EPMC to June 7, 2019.
After meeting and conferring, the City and CVPOA have tentatively agreed to a second amendment (“Second
Amendment’) to the 2014-2017 MOU Extension. The Second Amendment provides that the EPMC benefit
will continue until the last eligible Tier I CVPOA represented employee retires and, in return, said
employees will pay the full cost, as set forth in the Second amendment, the EPMC benefit. Furthermore,
CVPOA represented employees will continue to make payments on the employer side for optional benefits
pursuant to the 2014-2017 MOU(as extended)and Government Code section 20516.
To effectuate the Second Amendment, this item seeks: (1) approval of the Second Amendment, (2) to
rescind that portion of Resolution 2019-073 that would have ended EPMC on June 7, 2019; and (3) as
required by CalPERS, a resolution to report the value of EPMC at 9% (as was stated in prior MOU’s with
CVPOA).
Page|2
DECISION-MAKER CONFLICT
Not Applicable -Not Site-Specific
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific
and consequently, the real property holdings of the City Council members do not create 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 decisionmaker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
The elimination of EPMC for POArepresented employees effective the first full pay period in May (May 10,
2019)was factored into the Fiscal Year(FY)2018-2019 Budget. Per the Second Amendment, Eligible Tier
I CVPOA represented employees will begin paying for the EMPC benefit the first full pay period in May
(May10, 2019), so no additional appropriation is being requested at this time.
ONGOING FISCAL IMPACT
Per the Second Amendment, eligible Tier I CVPOA represented employees are required to pay the full cost
ofthe EPMC benefit. However, there nonetheless may be ongoingfiscal impactto theCity. Even though
theemployees will be required to pay the full cost of EPMCon an annual basis, any shortfall in CalPERS
investment rate of return will result in additional unfunded liability to the City, which the City will seek to
include in the required full cost payment by eligible Tier I CVPOA represented employees.
ATTACHMENTS
Attachment 1: Second Amendment to Amendment (Letter of Understanding) to the 2014-217 MOU
betweenthe City of Chula Vista and the Chula Vista Police Officer\[s\] \[Association\] Setting Forth the Terms
to Continue the EPMC benefit(“Second Amendment).
Staff Contact:Erin Dempster, Human Resources Operations Manager
Page|3
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING A SECOND AMENDMENT TO
THE 2014-2017 MOU EXTENSION BETWEEN THE CITY
AND THE CHULA VISTA POLICE OFFICERS ASSOCIATION
TO PROVIDE FOR THE CONTINUATION OF EMPLOYER
PAID MEMBER CONTRIBUTIONS(EPMC) BENEFIT ON
THE CONDITION, AS PROVIDED FOR IN THE SECOND
AMENDMENT,THAT ELIGIBLE TIER I CVPOA
REPRESENTED EMPLOYEES PAY THE FULL COST OF
SAID BENEFIT
WHEREAS, via an attendant MOU with the Chula Vista Police Officers Association
(specifically Article 2.18) (“CVPOA”)for the period of 2014-2017, the City and CVPOA agreed
that the City would pay 9% on the employee side (resulting in Employer Paid Member
Contributions (“EPMC”) as authorized by Government Code section 20691) for pension benefits
and CVPOA represented employees would correspondingly pay 9% on the employer side (as
authorized pursuant to Government Code section 20516)for pension benefits; and
WHEREAS, in an amendment (dated June 28, 2017)to the contract extension of the
2014-2017 MOU between the City and CVPOA, the City and CVPOA agreed that EMPC would
terminate the first pay period of May 2019 (May 10, 2019), but that CVPOA may elect to keep
EPMC if they notifiedthe City of its desire to retain EPMC andenter into a Letter of
Understanding (LOU) with the City(providing that the full cost of the EPMC benefit to be borne
by eligible Tier I CVPOA represented employees and the term in which the EPMCwould
continue)by April 1, 2019; and
WHEREAS, CVPOA notified the City on March 27, 2019 of its desire to keep EMPC,
but did not timely enter into a LOU with the City,as required,by April 1, 2019; however, the
City via Resolution 2019-073 rescinded prior resolutions to end EPMC on May 10, 2019 and
reset the end date for EPMC to June 7, 2019 to allow for continued negotiations between the City
and CVPOA regarding EPMC; and
WHEREAS, the City and CVPOA, after meeting and conferring in good faith, have
reached a tentative agreement (via a “Second Amendment” anda copy of said Second
Amendment is on file in the City Clerk’s Office) to continue the EPMC benefit and that eligible
Tier I CVPOA represented employees will pay the full cost of the EPMC benefit for its
continuation.
NOW, THEREFORE, BE IT RESOLVED that City Council for the City of Chula Vista
does herebyapprove the above referenced agreement (referred to as Second Amendment and on
file in the City Clerk’s Office) between the City and CVPOA that continues the EPMC benefit
for eligible Tier I CVPOA represented employees and requires that said employees to pay the
full cost of the EMPC benefit. City Council also reaffirms that Eligible Tier I CVPOA
represented employees will continue to make payments for optional benefits on the employer
side as provided for in the 2014-2017 MOU between the City and CVPOA and Government
code section 20516. The City Manager is directed and authorized to take any additional actions
required to execute and implement said agreement (Second Amendment).
Presented byApproved as to form by
Gary HalbertGlen R. Googins
City ManagerCity Attorney
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA SETTING EMPLOYER PAID MEMBER
CONTRIBUTIONS (EPMC) FOR TIER 1 EMPLOYEES IN
CLASSIFICATIONS REPRESENTED BY THE CHULA VISTA
POLICE OFFICER’S ASSOCIATIONAND RECINDING THAT
PORTION OF RESOLUTION 2019-073ENDING EPMC
EFFECTIVE JUNE 7, 2019 BY SETTING THE CITY
PAYMENT AT ZERO PERCENT
WHEREAS, the governing body of the City of Chula Vista has the authority to
implement Government Code Section 20691; and
WHEREAS, the governingbody of the City of Chula Vista has a written labor policy or
agreement which specifically provides for the normal member contributions to be paid by the
employer; and
WHEREAS, the EPMC benefit was to end on June 7, 2019 pursuant to Resolution 2019-
073bysetting the City payment at zero (0) percent; and
WHEREAS, one of the steps in the procedures to implement Section 20691 is the
adoption by the governing body of the City of Chula Vista of a Resolution to commence said
Employer Paid Member Contributions; and
WHEREAS, the governing body of the City of Chula Vista (City Council) has identified
the following conditions for the purpose of its election to pay EPMC:
This benefitshall apply to allTier Iemployees represented by Chula Vista Police
Officer’s Association.
This benefit shall consist of paying nine (9) percent of the normal member contributions
as EPMC.
This Resolution shall beeffectiveupon passage by City Council.
NOW, THEREFORE, BE IT RESOLVED that the governing body of the City of Chula
Vista elects to pay EPMC, as set forth above. The City Council further rescinds that portion of
Resolution 2019-073ending EPMC (by setting the benefit percentage to zero (0) percent) on
June 7, 2019.
Presented byApproved as to form by
Gary HalbertGlen R. Googins
City ManagerCity Attorney
May 21, 2019File ID: 19-0279
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CONTINUATION OF THE
ELECTRICITY
COMMODITY PURCHASES FROM SHELL ENERGY AND AUTHORIZING THE CITY MANAGER
TO EXECUTE ALL DOCUMENTS IN CONJUNCTION WITH UPDATING THE PURCHASERATES
RECOMMENDED ACTION
Council adopt the resolution.
SUMMARY
In order to foster price competiveness, the California Public Utilities Commission in 1998 began allowing
certainenergy customers to purchase electricity from third-party providers (in place of the local Investor-
Owned Utility), known as Direct Access Service. The City of Chula Vista purchases electricity for four
municipal buildings from Shell Energy under Direct Access Service. The City is now updating its electricity
procurement rates with Shell Energy, which are slightly higherthanlast year’srates due to newly installed
solar panels, but stillapproximately 15% lower than historical commodity prices. This approval would
allow for continuation of the electricity commodity purchases for up to 2 (two) years.
ENVIRONMENTAL REVIEW
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act
StateGuidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is
required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
In 1998, the California Public Utilities Commission began implementation of Assembly Bill 1890 (The
Electric Utility Restructuring Act) to make the generation of electricity more competitive in California. One
of the key provisions was the creation of “Direct Access Service” options in which commercial, industrial
and agricultural customers could select to purchase electricity from a third-party Electric Service Provider,
instead of from the Investor-Owned Utility (such as San Diego Gas & Electric). Direct Access allows these
customers to potentially negotiate better electricity commodity rates or higher renewable energy power
v.001 Page|1
mixes from the open market. The local utility still provides the transmission and distribution services for
Direct Access customerswithin their service territories.
During the energy crisis in 2001, the Department of Water Resources was required to issue revenue bonds
and enter into long-term electric energy purchasing contracts on behalf of California ratepayers. As a
result, the California Public Utilities Commission suspended Direct Access in order to create a stable
customer base to help the Department of Water Resources recover its costs. However, existing Direct
Access customers could continue to purchase their electricity from an Electric Service Provider. The City of
Chula Vista has four electricity accounts that have been “grandfathered” under Direct Access Service -Civic
Center Library, South Library, Public Services South (Building B), and Discovery Park. Over the last 12-
months the electricity commodity purchase for the four accounts totaled approximately $69,086.
The City is now updating its electricity procurement rates with Shell Energy, which are approximately 13%
higher per MWh than last year due to less usage during the low-cost solar hours which brings up the
average price per Megawatt hour, however the rates are still approximately 15% lower than historical
commodity prices. This approval would allow for continuation of the electricity commodity purchases for
upto 2 (two) years.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific
and consequently, the real property holdings of the City Council members do not create a disqualifying real
property-relatedfinancial 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.
CURRENT-YEAR FISCAL IMPACT
Because the new Confirmation Letter and its associated electricity procurement rates would not be
19, there willbe no impact duringthe current Fiscal Year 2018-19.
effective until July 1, 20
ONGOING FISCAL IMPACT
The new electricity procurement rates for this renewal are approximately 13% higher per MWh than last
yeardue to less usage during the low-cost solar hoursand a shorter renewal period (2 years vs. 3 years)
which brings up the average price per Megawatt hour. However,the rates are still approximately 15%
lower than historical commodity priceslike those associated with our SDG&E procurement accounts.
ATTACHMENTS
1.Confirmation letter
2.Direct Access Energy Sales Agreement 2004
3.Direct Access First Amendment to Energy Sales Agreement
Staff Contact: Coleen Wisniewski, Environmental Sustainability Manager, Economic Development Department
Page|2
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING
CONTINUATION OF THE ELECTRICITY COMMODITY PURCHASES FROM SHELL ENERGY
AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS IN
CONJUNCTION WITH UPDATING THE PURCHASERATES
WHEREAS, the California Public Utilities Commission began implementation of Assembly Bill
1890 in 1998 to make the generation of electricity more competitive in California through the creation
of “Direct Access Services;” and
WHEREAS, Direct Access allows commercial, industrial, and agricultural customers to purchase
electricity from a third-party Electric Service Provider, instead of from the local Investor-OwnedUtility;
and
WHEREAS, Direct Access allows these customers to potentially negotiate better electricity
commodity rates or higher renewable energy power mixes from the open market; and
WHEREAS, the City of Chula Vista has fourelectricity accounts that are under Direct Access
Service with Shell Energy; and
WHEREAS, under the contract with Shell Energy, the City “locks-in” electricity procurement rates
for certain time periods through a Confirmation Letter to minimize utility cost fluctuations; and
WHEREAS, the City’s current Confirmation Letter and associated rates are expiring; and
WHEREAS, the City is now updating its electricity procurement rates with Shell Energy, which
are approximately 13% higher per MWh than last year due to less usage during the low cost solar hours
because of newly installed behind the meter solar panels which brings up the average price per
Megawatt hour;
WHEREAS, overall energy consumption and spend will be less because ofnewly installed solar
but the commodity price is approximately 15% lower than historical commodity prices.
NOW, THEREFORE, the City Councilof the City of Chula Vista does hereby resolve that it:
1.Approves continuation of electricity commodity purchases from Shell Energy; and
2.Authorizes and directs the City Manager, or designee, to execute an up to 2-year
Confirmation letter with rates not to exceed $55 per Megawatt Hour, in the form presented,
with such modifications as may be approved or required by the City Attorney, to be kept on
file in the office of the City Clerk.
Presented by Approved as to form by
____________________________________________________________
Eric CrockettGlen R. Googins
Director of Economic DevelopmentCity Attorney
May 21, 2019File ID: 19-0220
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CITY MANAGER,
OR DESIGNEE, TO EXECUTE CONTRACTS FOR SERVICE WITH MICROSOFT CORPORATION FOR
SOFTWARE, SUBSCRIPTION AND LICENSING SERVICES UTILIZING THE COUNTY OF RIVERSIDE
ENTERPRISE AGREEMENT WITH MICROSOFT CORPORATION #01E73970AMENDMENT ID #CAMSTR-
051116
RECOMMENDED ACTION
Council adopt the resolution.
SUMMARY
Staff recommends that Council approve the renewal of thesoftware and licensing agreement (referred to
hereinas “Enterprise Agreement”) with Microsoft Corporation to provide upgraded licensing for
computer/server operating systems, SQL database licensing, disaster recovery services, backend
software/network systems software, and city-wide subscription services toOffice365.
ENVIRONMENTAL REVIEW
The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act
StateGuidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is
required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not Applicable.
DISCUSSION
As part of the Information Technology departments’ Technology Improvement Program, the department
methodical upgrade to the core systems throughout the City to include:
has continued a
1) Computer Replacement Program -200 PC’s per year replaced which started in 2015
2) Network Upgrade -New networking hardware and change in architecture (City-wide)which is currently
underway
3) Internet Connectivity -Increased from 100 MB/sec upload/download to 1 GB upload/download
4) Key Systems Upgrades -Domain Controllers, Accela Automation (Development Services), FASTER
(Public Works, Garage), Lucity (Public Works), Tyler/Munis (Finance/HR), Telestaff (Fire)
5) Windows 10 Upgrades (City-wide) –Currently underway
v.001 Page|1
6) Office 365 Upgrades (City-wide) –Currently underway
7) Disaster Recovery Systems (City-wide) –RFP currently being conducted to identify a consultant to
develop and implement disaster recovery policies and deploy appropriate technology
8) Domain Consolidation -RFP currently being conducted to identify a consultant to consolidate the three
main domains (City_CV, CVCAD and CVLibrary) into one central domain (significantly reduces complexity
of our networking and Active Directory services)
As part of the Technology Improvement Program, the City wishes to continue our Enterprise Agreement for
licensing and software with Microsoft to continue the upgrade path system-wide. This Enterprise
Agreement will include continuous licensing upgrades for all Windows desktop operating systems to
Windows 10 (and beyond), upgrades for Windows server operating systems, upgrades for Microsoft SQL
server software, backend network management software, access to Microsoft Azure Cloud based storage
for disaster recovery operations and upgrade to Office365 productivity suite.
Below are some highlights of the advantages of continuing the Enterprise Agreement as opposed to other
licensing models (Select or Retail pricing):
1) Lowest possible pricing for Microsoft products -This Enterprise Agreement includes Government “D”
pricing (15% below OEM pricing) plus an additional 7.5% reduction in pricing on top of Government “D”
pricing -which is a 22.5% total discount. This is normally reserved for only the largest agencies (10,000+
users).
2) Ability to spread the licensing costs over three years, rather than lump sum payments. This is not
available with Select or retail pricing.
3) Ability to implement and continue using Office365 (not available unless in anEnterprise Agreement).
4) Access to enhanced training options not available to non-Enterprise Agreement customers -including
training vouchers for advanced training programs which are not free. This is not available under Select or
retail pricing.
5) Microsoft Desktop Optimization Pack (MDOP) -suite of technologies available to help IT staff virtualize
the user experience, applications and Windows; helps manage features within Windows; and rapidly
restore user productivity after a system issue is encountered to ensure top operational efficiency.
6) Windows Desktop Operating System upgrades -This agreement will ensure that the City is fully licensed
to deploy Windows 10 throughout the IT infrastructure and sets forth an upgrade path to future
deployments of Windows operating systems.
7) Windows Server Operating System upgrades –When we began with our initial Enterprise Agreement,
we had nearly 2/3rd of our server fleet (150+ servers)operating on Windows Server 2003 which does not
receive any security patches or software updates from Microsoft. This continues to be a significant security
and operational concern for the department. We have fewer than 16 servers left to migrate, many of which
will be taken off-line in the next three months.
8) Enhanced office productivity enhancements -Instant messaging, Skype for Business/TEAMS (video
conferencing), remote desktop sharing (for webinars), and Sharepoint. This is not available under Select or
retail pricing.
9) Advanced security options -Encryption capabilities for desktop and server hardrives and email control
of sensitive documents which should not be sent out of City or contain sensitive information (e.g. Social
Security numbers). This is not available under Select or retail pricing.
10) Advanced archivingand eDiscovery features for email which will make compliance with theCalifornia
Public Records Act much easier. This is not available under Select or retail pricing.
11) Mobility Suite -mobile device management software to ensure City mobile devices aresecure and
enables advanced functionality to wipe City information if a mobile device is lost or stolen. Also allows for
remote access control for IT troubleshooting without need to bring device in from the field.
Page|2
12) Enhanced Storage -50 GB email storage per user, plus additional 5 TB files storage via OneDrive. Files
are now accessible anywhere an employee can log into the internet. This is not available under Select or
retail pricing.
13) Employees may deploy Office365 on up to 5 PC’s, 5 Tablets and 5 SmartPhones as part of this
agreement.
There are many more features included with the Enterprise Agreement, all of which will significantly
improve:
1) IT Management of software, hardware and network
2) Workplace collaboration
3) Data Security
4) Disaster Recovery
As part of the Enterprise Agreement, Microsoft allows agencies to spread the licensing costs over a three
year period. Additionally, the City will be able to take advantage of Microsoft’s in-house planning
consultants who will assist with the design of any major IT projects.
The County of Riverside has successfully negotiated very favorable pricing for the Enterprise Agreement.
Normally, the City would qualify for Microsoft’s “Government D” level pricing of 15% off of retail prices.
The County of Riverside was able to reduce those costs an additional 7.5%, which are the absolute lowest
cost available to an organization our size. This represents a 22.5% reduction in costs over retail pricing,
and a 17.5% reduction in costs over Select pricing. There are over 800 governmental agencies in the State
of California who have taken advantage of this contract.
The County of Riverside agreement provides for six different vendors who have been authorized by
Microsoft to be the retailer for all of Microsoft’s products included under the Enterprise Agreement (you
cannot purchase direct from Microsoft). All six vendors were contacted, and quotes were requested from
each vendor. Below is a summary of the quotes received:
*Year 1 -$410,762; Year 2 and 3 -$431,441/yr
Based on the quotes received, Crayon was the low bid response.
Ultimately, our Enterprise Agreement will ensure that the City is able to maintain a robust IT infrastructure
as we move forward with our SmartCities initiatives. Technologychanges so rapidly that unless the City can
be agile and up-to-date with our IT infrastructure, it will be exceedingly hard to implement the technology
that the City needs to keep providing high quality services to our businesses and citizens.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific
and consequently, the real property holdings of the City Council members do not create a disqualifying real
Page|3
property-related financialconflict 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 ofinterest in this matter.
CURRENT-YEAR FISCAL IMPACT
st
This contract is for three years and will start June 1, 2019. The contract will end on May 31, 2022. The first
year annual cost of the new agreement is $410,762. There will be no net fiscal impact tothe General Fund
as the current funds budgeted for our Microsoft licensing will be sufficient to cover this cost.
ONGOING FISCAL IMPACT
Years two and three of this contract are $431,441 per year. The budget for this expense will be included in
theFiscal Year 2019-20 Proposed Budget and be considered by the City Council as part of the normal
budget process.If no additional licensing is required, then no additional appropriations will be required.
st
This contract will end on May 31, 2022. Prior to that time, staff will engage with Microsoft for renewal of
the agreement and bring forward a new contract for City Council approval.
ATTACHMENTS
1.Resolution
2.Microsoft Enterprise Agreements
3.Crayon EA Renewal Pricing
Staff Contact: Edward Chew, Director of Information Technology Services
Page|4
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA AUTHORIZING THE CITY MANAGER, OR
DESIGNEE, TO EXECUTE CONTRACTS FOR SERVICE
WITH MICROSOFT CORPORATION FOR SOFTWARE,
SUBSCRIPTION AND LICENSING SERVICES UTILIZING
THE COUNTY OF RIVERSIDE ENTERPRISE AGREEMENT
WITH MICROSOFT CORPORATION #01E73970
AMENDMENT ID #CAMSTR-051116
WHEREAS,the City’s Information and Technology Services (ITS) Department has
undertaken a Technology Improvement Program to methodically upgrade all technology systems
throughout the City to current industry standards; and
WHEREAS, to continue our upgrade process, the City will need to maintain Enterprise
licensing for desktop PC’s and servers to ensure the latest versions of Microsoft operating system
environments are available; and
WHEREAS, the City wishes to renew our Enterprise Agreement with Microsoft
Corporation utilizing a County of Riverside Enterprise Agreement and take advantage of
substantial licensing/subscription cost reductions; and
WHEREAS, well over 800 governmental agencies throughout the State of California
have taken advantage of the County of Riverside Enterprise Agreement; and
WHEREAS, beyond the Office365 and operating system licensing, the Microsoft
Enterprise Agreement will provide additional tools and services for the City to improve upon the
delivery of IT services to the employees and citizens.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it authorizes and directs the City Manager, or designee, to execute a contract for
service with Microsoft Corporation for software, subscription and licensing agreements utilizing
the County of Riverside Enterprise Agreement with Microsoft Corporation 01E73970
Amendment ID #CAMSTR-051116,” in the form presented with such minor modifications as the
City Attorney may approve or require.
Presented byApproved as to form by
Edward ChewGlen R. Googins
Director of Information TechnologyCity Attorney
Services
Program Signature Form
MBA/MBSA number
Agreement number
01E73970
Note:Enter the applicable active numbers associated with the documents below. Microsoft
requires the associated active number be indicated here, or listed below as new.
Affiliate,
Government Partner, Institution, or other party entering into a volume licensing program
agreement.
This signature form and all contract documents identified in the table below are entered into between
the Customer and the Microsoft Affiliate signing, as of the effective date identified below.
Contract DocumentNumber or Code
Enterprise Enrollment (Indirect)X20-10634
Product Selection Form0842850.001_PSF
By signing below, Customer and the Microsoft Affiliate agree that both parties (1) have received, read
and understand the above contract documents, including any websites or documents incorporated by
reference and any amendments and (2) agree to be bound by the terms of all such documents.
Customer
Name of Entity (must be legal entity name)* City of Chula Vista
Signature*
Printed First and Last Name*
Printed Title
Signature Date*
Tax ID 956000690
*indicates required field
Microsoft Affiliate
Microsoft Corporation
Signature
Printed First and Last Name
Printed Title
Signature Date
(date Microsoft Affiliate countersigns)
Agreement Effective Date
ProgramSignForm(MSSign)(NA,LatAm)ExBRA,MLI(ENG)(Aug2014)Page 1of 2
nd
Optional 2Customer signature or Outsourcer signature (if applicable)
Customer
Name of Entity (must be legal entity name)*
Signature*
Printed First and Last Name*
Printed Title
Signature Date*
* indicates required field
Outsourcer
Name of Entity (must be legal entity name)*
Signature*
Printed First and Last Name*
Printed Title
Signature Date*
* indicates required field
If Customer requires physical media, additional contacts, or is reporting multiple previous Enrollments,
include the appropriate form(s) with this signature form.
After this signature form is signed by the Customer, send it and the Contract Documents to
address. When the signature form is fully executed by Microsoft, Customer will receive a confirmation
copy.
Microsoft Corporation
Dept. 551, Volume Licensing
6100 Neil Road, Suite 210
Reno, Nevada 89511-1137
USA
ProgramSignForm(MSSign)(NA,LatAm)ExBRA,MLI(ENG)(Aug2014)Page 2of 2
Enterprise EnrollmentState and Local
Enterprise Enrollment numberFramework ID
66424016
(Microsoft to complete)(if applicable)
Previous Enrollment number
73981946
(Reseller to complete)
This Enrollment must be attached to a signature form to be valid.
This Enrollment consists of: (1) these terms and conditions, (2) the terms of the Enterprise Agreement
identified on the signature form, (3) the Product Selection Form, (4) the Product Terms, (5) the Online
Services Terms, (6) any Supplemental ContactInformation Form,Previous Agreement/Enrollment form,
and other formsthat may be required,and(7) any order submitted under this Enrollment. This Enrollment
may only be entered into under a 2011 or later Enterprise Agreement.By entering into this Enrollment,
Enrolled Affiliate agrees to be bound by the terms and conditions of the Enterprise Agreement.
All terms used but not defined are located at http://www.microsoft.com/licensing/contracts.In the event of
any conflict the terms of this Agreement control.
Effective date.If Enrolled Affiliate is renewing Software Assurance or Subscription Licenses from one or
more previous Enrollments or agreements, then the effective date will be the day after the first prior
Enrollment or agreement expires or terminates. If this Enrollment is renewed, the effective date of the
renewal term will be the day after the Expiration Date of the initial term. Otherwise, the effective date will
be the date this Enrollment is accepted by Microsoft.
anniversary of the effective dateof the applicable initial or renewal term foreach year this Enrollment is in
effect.
Term. The initial term of this Enrollment will expire on the last day of the month, 36 full calendar months
from the effective dateof the initial term. The renewal term will expire 36 full calendar months after the
effective date of the renewal term.
Terms and Conditions
1.Definitions.
Terms used but not defined in this Enrollment will have the definition in the Enterprise Agreement. The
following definitions are used in this Enrollment:
Product Termsand chosen by Enrolled
Affiliate under this Enrollment.
Enrolled Affiliate using eligible Government Community Cloud Services to provide solutions to a
Government or a qualified member of the Community, or (3) a Customer with Customer Data that is subject
to Government regulations for which Customer determines and Microsoft agrees that the use of
EA2016EnrGov(US)SLG(ENG)(Nov2016)Page 1of 10
Document X20-10634
Mem
Community Cloud Service.
Product Termsand chosen by Enrolled Affiliate under this Enrollment. Enterprise Online Services are
treated as Online Services, except as noted.
Product in the Product Termsand chosen by Enrolled Affiliate under this Enrollment. Enterprise Products
mustbe licensed for all Qualified Devices and Qualified Users on an Enterprise-wide basis under this
program.
ires.
Government.
capacity.
-tenant data centers for exclusive use by or for the Community and offered in accordance
with the National Institute of Standards and Technology (NIST) Special Publication 800-145. Microsoft
Online Services that are Government Community Cloud Services are designated as such in the Use Rights
and Product Terms.
deployed configuration as a general purpose personal computing device (such as a personal computer), a
multi-function server, or a commercially viable substitute for one of these systems; and (2) only employs an
industry or task-specific software program (e.g. a computer-aided design program used by an architect or
Microsoft software or third-party software. If the device performs desktop functions (such as email, word
processing, spreadsheets, database, network or Internet browsing, or scheduling, or personal finance),
then the desktop functions: (1) may only be used for the purpose of supporting the Industry Program
functionality; and (2) must be technically integrated with the Industry Program or employ technically
enforced policies or architecture to operate only when used with the Industry Program functionality.
controls
one or more operating system environments. Examples of Managed Devices can be found in the Product
Terms.
is: (1) a personal desktop computer, portable computer, workstation, or similar device capable of running
Windows Prolocally (in a physical or virtual operating system environment), or(2) a device used to access
any device that is: (1) designated
as a server and not used as a personal computer, (2) an Industry Device,or(3) not a Managed Device. At
its option, the Enrolled Affiliate may designate any device excluded above (e.g., Industry Device) that is
as a Qualified Device for all or a subset of
Enterprise Products or Online Services the Enrolled Affiliate has selected.
Qualified Device, or (2) accesses any server software requiring an Enterprise Product Client Access
License or any EnterpriseOnline Service. It does not include a person who accesses server software or
an Online Service solely under a License identified in the Qualified User exemptions in the Product Terms.
n entity authorized by Microsoft to resell Licenses under this programandengagedby
anEnrolledAffiliatetoprovidepre-andpost-transactionassistancerelated to this agreement;
-ups in the Product Terms,
the License reservedby Enrolled Affiliate prior to use and for which Microsoft will make the Online Service
available for activation.
EA2016EnrGov(US)SLG(ENG)(Nov2016)Page 2of 10
Document X20-10634
"State/Local Entity" means (1) any agency of a state or local government in the United States, or (2) any
United States county, borough, commonwealth, city, municipality, town, township, special purpose district,
-recognized tribal entity performing tribal governmental functions and
eligible for funding and services from the U.S. Department of Interior by virtue of its status as an Indian
tribe.
sing program, the use rights or terms of service for each
Product and version published for that licensing program at the Volume Licensing Site. The Use Rights
supersede the terms of any end user license agreement (on-screen or otherwise) that accompanies a
Product. The Use Rights for Software are published by Microsoft in the Product Terms. The Use Rights for
Online Services are published in the Online Services Terms.
site.
2.Order requirements.
a.Minimum order requirements.
Qualified Users or Qualified Devices. The initial order must include at least 250 Licenses for
Enterprise Products or Enterprise Online Services.
(i)Enterprise commitment. Enrolled Affiliatemustorder enough Licenses to cover all
Qualified Users or Qualified Devices, depending on the License Type, with one or more
Enterprise Products or a mix of Enterprise Products and the corresponding Enterprise
Online Services(as long as all Qualified Devices not covered by a License are only used
by users covered with a user License).
(ii)Enterprise Online Servicesonly. If no Enterprise Product is ordered,then Enrolled
Affiliate need only maintain at least 250 Subscription Licensesfor Enterprise Online
Services.
b.Additional Products.Upon satisfying the minimum order requirements above, Enrolled
Affiliate may order Additional Products.
c.Use Rights for Enterprise Products. For Enterprise Products, if a new Product version has
more restrictive use rights than theversion that is current at the start of the applicable initial or
renewal term of the Enrollment, those more restrictive use rights will not apply to Enrolled
d.Country of usage.Enrolled Affiliate must specify the countries where Licenses will be used
on its initial order and on any additional orders.
e.Resellers. Enrolled Affiliate must choose and maintain a Reseller authorized in the United
States.Enrolled Affiliate will acquire its Licenses through its chosen Reseller.Orders must be
submitted to the Resellerwho will transmit the order to Microsoft. The Reseller and Enrolled
Affiliate determine pricing and payment termsas between them, and Microsoft will invoice the
Resellerbased on those terms.
price. Resellers and other third parties do not have authority to bind or impose any obligation
or liability on Microsoft.
f.Adding Products.
(i)Adding new Products not previously ordered.NewEnterprise Products orEnterprise
Online Services may be added at any time by contacting a Microsoft Account Manager or
Reseller. New Additional Products, other than Online Services, may be used if an order is
placed in the month the Product is first used. For Additional Products that are Online
Services, an initial order for the Online Service is required prior to use.
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Document X20-10634
(ii)Adding Licenses for previously ordered Products.Additional Licenses for previously
ordered Products other than Online Services may be addedat any time but must be
included in the next true-up order. AdditionalLicenses for Online Services must be ordered
prior to use, unless the Online Services are (1) identified as eligible for true-up in the
Product Termsor (2) included as part of other Licenses.
g.True-up requirements.Enrolled Affiliate must submit an annual true-up order that accounts
for any changes since the initial order or last order. If there are no changes, then an update
statement must be submitted instead of a true-up order.
(i)Enterprise Products. For Enterprise Products,Enrolled Affiliate must determine the
number of Qualified Devices and Qualified Users (if ordering user-based Licenses) at the
time the true-up order is placed and must order additional Licenses for all Qualified Devices
and Qualified Users that are not already covered by existing Licenses, including any
Enterprise Online Services.
(ii)Additional Products. For Additional Products that have been previously orderedunder
this Enrollment, Enrolled Affiliate must determine the maximum number of Additional
Products used since the latter of the initial order, the last true-up order, or the prior
anniversary date andsubmit a true-up order that accounts for any increase.
(iii)Online Services. For Online Services identified as eligible for true-up in the Product
Terms, Enrolled Affiliate may place a reservation orderfor the additional Licenses prior to
useand payment may be deferred until the next true-up order. Microsoft will provide a
report of Reserved Licensesordered but not yet invoicedto Enrolled Affiliate and its
Reseller. Reserved Licenses will be invoiced retroactively tothe month in which they were
ordered.
(iv)Subscription License reductions. Enrolled Affiliate may reduce the quantity of
Subscription Licenses at the Enrollment anniversary date on a prospective basis if
permitted in theProduct Terms, as follows:
1)For Subscription Licenses that are part of an Enterprise-wide purchase, Licenses may
be reduced if the total quantity of Licenses and Software Assurance for an applicable
group meets or exceeds the quantity of Qualified Devices and Qualified Users (if
ordering user-based Licenses) identified on the Product Selection Form, and includes
any additional Qualified Devices and Qualified Users added in any prior true-up orders.
Step-up Licenses do not count towards this total count.
2)For Enterprise Online Services that are not a part of an Enterprise-wide purchase,
Licenses can be reduced as long as the initial order minimum requirements are
maintained.
3)For Additional Products available as Subscription Licenses, Enrolled Affiliate may
use of the applicable Subscription License will be cancelled.
Invoices will be adjusted to reflect any reductions in Subscription Licenses at the true-up
order Enrollment anniversary date and effective as of such date.
(v)Update statement. An update statement must be submitted instead of a true-up order if,
since the initial order or last true-
changed the number of Qualified Devices and Qualified Users licensed with Enterprise
Products or Enterprise Online Services; and (2) has not increased its usage of Additional
Products. This update statement must be signed by Enrolled Affiliat
representative.
(vi)True-up order period. The true-up order or update statement must be received by
Microsoft between 60 and 30 days prior to each Enrollment anniversary date. The third-
year true-up order or update statement is due within 30 days prior to the Expiration Date,
and any license reservations within this 30 day period will not be accepted. Enrolled Affiliate
EA2016EnrGov(US)SLG(ENG)(Nov2016)Page 4of 10
Document X20-10634
may submit true-up orders more often to account for increases in Product usage, but an
annual true-up order or update statement must still be submitted during the annual order
period.
(vii)Late true-up order. If the true-up orderor update statementis not received when due,
Microsoft will invoice Reseller for all Reserved Licenses not previously invoiced and
Subscription License reductions cannot be reported until the following Enrollment
anniversary date (or at Enrollment renewal, as applicable).
h.Step-up Licenses. For Licenses eligible for a step-up under this Enrollment, Enrolled Affiliate
may step-up to a higher edition or suite as follows:
(i)For step-up Licenses included on an initial order, Enrolled Affiliate may order according to
the true-up process.
(ii)If step-up Licenses are not included on an initial order, Enrolled Affiliate may step-up
pre-up Licenses, by following the true-up order
process.
i.Clerical errors.Microsoft may correct clerical errors in this Enrollment, and any documents
submitted with or under this Enrollment, by providing notice by email and a reasonable
opportunity for Enrolled Affiliate to object to the correction. Clerical errors include minor
mistakes, unintentional additions and omissions. This provision does not apply to material
terms, such as the identity, quantity or price of a Product ordered.
j.Verifying compliance. Microsoftmay, in its discretion and at its expense,verify compliance
with this Enrollment as set forth in the EnterpriseAgreement.
3.Pricing.
a.Price Levels. For both the initial and any renewal term Enrolled
b.Setting Prices. Enrolledrices for each Product or Service will be established by its
Reseller.Except for OnlineServices designated in the Product Terms as being exempt from
fixed pricing, As longas Enrolled Affiliate continues to qualify for the same price level,
ordered will be fixed throughout the
applicable initial or renewal Enrollment term.prices toResellers are reestablished
at the beginning of the renewal term.
4.Payment terms.
For the initial or renewal order, Enrolled Affiliate may pay upfront or elect to spread its payments over the
applicable Enrollment term.
Reseller in full upon acceptance of this Enrollment. If spread payments are elected, unless indicated
otherwise, Microsoft will invoice Enrolled Af
remaining installments will
be invoiced on each subsequent Enrollment anniversary date. Subsequent orders are invoiced upon
acceptance of the order and Enrolled Affiliate may elect to pay annually or upfront for Online Services and
upfront for all other Licenses.
5.End of Enrollment term and termination.
a.General.At the Expiration Date, Enrolled Affiliate must immediately order and pay for Licenses
for Products it has used but has not previously submitted an order, except as otherwise
provided in this Enrollment.
EA2016EnrGov(US)SLG(ENG)(Nov2016)Page 5of 10
Document X20-10634
b.Renewal option. At the Expiration Dateof the initial term, Enrolled Affiliate can renew
Products by renewing thisEnrollment for one additional 36-month term orbysigning a new
Enrollment. Microsoft must receive aRenewal Form,Product Selection Form,and renewal
order prior to or at the Expiration Date. Microsoft will not unreasonably reject any renewal.
Microsoft may make changesto this program that will make it necessary for Customer and its
Enrolled Affiliates to enter into new agreements and Enrollmentsat renewal.
c.If Enrolled Affiliate elects not to renew.
(i)Software Assurance.If Enrolled Affiliateelects not to renew Software Assurance for any
Product under its Enrollment, then Enrolled Affiliate will not be permitted to order Software
Assurance later without first acquiring a new License with Software Assurance.
(ii)Online Services eligible for an Extended Term. For Online Services identified as eligible
for an Extended Term in the Product Terms, the following options are available at the end
of the Enrollment initial or renewal term.
1)Extended Term. Licenses for Online Services will automatically expire in accordance
with the terms of the Enrollment. An extended term feature that allows Online Services
to continue month-to-for up to one year, unless designated
in the Product Terms to continue until cancelled, is available. During the Extended
Term, Online Services will be invoiced monthly at the then-current published price as
of the Expiration Date plus a 3% administrative fee. If Enrolled Affiliate wantsan
Extended Term, Enrolled Affiliate must submit a request to Microsoft at least30 days
prior to the Expiration Date.
2)Cancellation during Extended Term.At any time during the first year of the
Extended Term, Enrolled Affiliate may terminate the Extended Term by submitting a
notice of cancellation to Microsoft for each Online Service. Thereafter, either party
may terminate the Extended Term by providing the other with a notice of cancellation
for each Online Service.Cancellation will be effective at the end of the month following
30 days after Microsoft has receivedor issuedthe notice.
(iii)Subscription Licenses and Online Services not eligible for an Extended Term. If
Enrolled Affiliate elects not to renew, the Licenses will be cancelled and will terminate as
of the Expiration Date.Any associated media must be uninstalled and destroyed and
certification to verify compliance.
d.Termination for cause. Any termination for cause of this Enrollment will be subject to the
section of the Agreement.In addition, it shall be a breach of this
Enrollment if Enrolled Affiliate or any Affiliate in the Enterprise that usesGovernment
Community Cloud Services fails to meet and maintain the conditions of membership in the
definition of Community.
e.Early termination. Any e
For Subscription Licenses, in the event of a breach by Microsoft, or if Microsoft terminates an
Online Service for regulatory reasons, Microsoft will issue Reseller a credit for any amount paid
in advance for the period after termination.
6.Government Community Cloud.
a.Community requirements.If Enrolled Affiliate purchases Government Community Cloud
Services, Enrolled Affiliate certifies that it is a member of the Community and agrees to use
Government Community Cloud Services solely in its capacity as a memberof the Community
and, for eligible Government Community Cloud Services,for the benefit of end users that are
members of the Community. Use of GovernmentCommunity Cloud Services by an entity that
is not a member of the Community or to provide services to non-Community members is strictly
EA2016EnrGov(US)SLG(ENG)(Nov2016)Page 6of 10
Document X20-10634
prohibited
Community Cloud Services without notice. Enrolled Affiliate acknowledges that only
Community members mayuseGovernmentCommunity Cloud Services.
b.All terms and conditions applicable to non-Government Community Cloud Services also apply
to their corresponding Government Community Cloud Services, except as otherwise noted in
the Use Rights, Product Terms,and this Enrollment.
c.Enrolled Affiliate may not deploy or use Government Community Cloud Services and
corresponding non-Government Community Cloud Services in the same domain.
d.Use Rightsfor Government Community Cloud Services. For Government Community
Cloud Services, notwithstanding anything to the contrary in the Use Rights:
(i)Government Community Cloud Services will be offered only within the United States.
(ii)Additional European Terms, as set forth in the Use Rights,will not apply.
(iii)References to geographic areas in the Use Rights with respect to the location of Customer
Data at rest, as set forth in the Use Rights, refer only to the United States.
EA2016EnrGov(US)SLG(ENG)(Nov2016)Page 7of 10
Document X20-10634
Enrollment Details
1.
a.I
Enterprise must consist of entire offices, bureaus, agencies, departments or other entities of
Enrolled Affiliate, not partial offices, bureaus, agencies, or departments, or other partial entities.
Check only one box in this section. If no boxes are checked, Microsoft will deem the Enterprise
to include the Enrolled Affiliate only. If more than one box is checked, Microsoft will deem the
Enterprise to include the largest number of Affiliates:
Enrolled Affiliateonly
Enrolled Affiliate and all Affiliates
Enrolled Affiliate and the following Affiliate(s)(Only identify specific affiliates to be included
if fewer than all Affiliates are to be included in the Enterprise):
Enrolled Affiliate and all Affiliates, with following Affiliate(s) excluded:
b.
after the start of this Enrollment:Exclude future Affiliates
2.Contact information.
Each party will notify the other in writing if any of the information in the following contact information page(s)
changes. The asterisks (*) indicate required fields. By providing contact information, Enrolled Affiliate
consents to its use for purposes of administering this Enrollment by Microsoft, its Affiliates, and other parties
that help administer this Enrollment. The personal information provided in connection with this Enrollment
will be used and protected in accordance with the privacy statementavailable at
https://www.microsoft.com/licensing/servicecenter.
a.Primary contact.This contact is the primary contact for the Enrollment from within Enrolled
Service Center and may grant online access to others.The primary contact will be the default
contact for all purposes unless separate contacts are identified for specific purposes
Name of entity (must be legal entity name)*City of Chula Vista
Contact name* FirstEdwardLastChew
Contact email address*echew@chulavistaca.gov
Street address*276 Fourth Avenue
City*Chula Vista
State/Province*CA
Postal code*91910-2631-
(For U.S. addresses, please provide the zip + 4, e.g. xxxxx-xxxx)
Country*United States
Phone*619-691-5013
Tax ID956000690
* indicates required fields
b.Notices contact and Online Administrator.This contact (1) receives the contractual notices,
(2) is the Online Administrator for the Volume Licensing Service Center and may grant online
access to others, and (3) is authorized to order Reserved Licenses for eligible Online Servies,
including addingor reassigningLicensesandstepping-upprior to a true-up order.
EA2016EnrGov(US)SLG(ENG)(Nov2016)Page 8of 10
Document X20-10634
Same as primary contact (default if no information is provided below, even if the box is not
checked).
Contact name* FirstEdwardLastChew
Contact email address*echew@chulavistaca.gov
Street address*276 Fourth Avenue
City*Chula Vista
State/Province*CA
Postal code*91910-2631-
(For U.S. addresses, please provide the zip + 4, e.g. xxxxx-xxxx)
Country*United States
Phone*619-691-5013
Language preference.Choose the language for notices. English
This contact is a third party (not the Enrolled Affiliate). Warning: This contact receives
personally identifiable information of the Customer and its Affiliates.
* indicates required fields
c.Online Services Manager. This contact is authorized to manage the Online Services ordered
under the Enrollment and (for applicable Online Services) to add or reassign Licensesand
step-upprior to a true-uporder.
Same as notices contact and Online Administrator(default if no information is provided
below, even if box is not checked)
Contact name*: First EdwardLast Chew
Contact email address* echew@chulavistaca.gov
Phone* 619-691-5013
This contact is from a third party organization (not the entity). Warning: This contact receives
personally identifiable information of the entity.
* indicates required fields
d.Resellerinformation. Reseller contact for this Enrollment is:
Reseller company name* Crayon Software Experts LLC
Street address (PO boxes will not be accepted)* 12221 Merit DriveSuite 800
City* Dallas
State/Province* TX
Postal code* 75251-1313
Country* United States
Contact name* Crayon USOPS TEAM
Phone* 469-329-0290
Contact email address* license.us@crayon.com
* indicates required fields
By signing below, the Reseller identified above confirms that all information provided in this
Enrollment is correct.
Signature*
Printed name*
Printed title*
Date*
* indicates required fields
Changing a Reseller.If Microsoft or the Reseller chooses to discontinue doing business with
each other, Enrolled Affiliate must choose a replacement Reseller. If Enrolled Affiliate or the
Reseller intends to terminate their relationship, the initiating party must notify Microsoft and the
EA2016EnrGov(US)SLG(ENG)(Nov2016)Page 9of 10
Document X20-10634
other party using a form provided by Microsoft at least 90 days prior to the date on which the
change is to take effect.
e.If Enrolled Affiliate requires a separate contact for any of the following, attach the Supplemental
Contact Informationform. Otherwise, the notices contact and Online Administratorremains
the default.
(i)Additional notices contact
(ii)Software Assurance manager
(iii)Subscriptions manager
(iv)Customer Support Manager (CSM) contact
3.Financing elections.
Is a purchase under this Enrollment being financed through MS Financing? Yes, No.
If a purchase under this Enrollment is financed through MS Financing, and Enrolled Affiliate chooses not to
finance any associated taxes, it must pay these taxes directly to Microsoft.
EA2016EnrGov(US)SLG(ENG)(Nov2016)Page 10of 10
Document X20-10634
Previous Enrollment(s)/Agreement(s)Form
Entity Name:City of Chula Vista
Contract that this form is attached to:State Local Government
For the purposes of entity
Government Partner, Institution, or other party entering into a volume licensing program agreement.
Please provide a description of the previous Enrollment(s), Agreement(s), Purchasing Account(s),
and/or Affiliate Registration(s) being renewed or consolidated into the new contract identified above.
a.Entity may select below any previous contract(s) from which to transfer MSDN subscribers
to this new contract. Entity shall ensure that each MSDN subscriber transferred is either
properly licensed under the new contract or is removed.
b.Entity may select below only one previous contract from which to transfer the Software
Assurance (SA) Benefit contact details, i.e., benefits contact (notthe SA manager) and the
program codes, to this new contract.
c.An Open License cannot be used to transfer either the SA Benefit details or MSDN
subscribers.
d.The date of the earliest expiring Enrollment/Agreement that contains SA or Online Services
will bethe effective date of the new contract (or SA coverage period for Select Plus).
e.Please insert the number of the earliest expiring Enrollment/Agreement with SA or Online
Services in the appropriate fields of the new contract.
Enrollment/Agreement/
Enrollment/Agreement/Transfer Transfer
Purchasing Account/Affiliate
Purchasing Account/Affiliate SA Benefit MSDN
Registration Public Customer
Registration DescriptionContactSubscribers
Number
Standard Enrollment73981946XX
Standard Enrollment62654772X
PrevEnrAgrForm(WW)(ENG)(Apr2016)Page 1of 1
Enterprise and Enterprise Subscription Enrollment
Product Selection Form
Enrollment Number
Microsoft to completefor initial term.
Reseller or Software Advisor to
complete for renewalor with prior
qualifying Enrollment/Agreement
Step 1.Enter all fields in the table below (Required).
Enterprise
Qualified
ProfileQualified UsersProduct Licensing Model
Devices
Platform
Enterprise930YesUser
Device Profile
Choose OneChoose One
(e.g.Call Center)
Step 2.Select the Products and Quantities Enrolled Affiliate is ordering on its initial Enrollment
Order.Quantity may not include any Licenses whichEnrolled Affiliate has selected for optional
future use, or to which it is stepping-up within Enrollment term.
EnterpriseDevice Profile
Products
Quantity(e.g.Call Center)
Microsoft 365
Microsoft 365E3 USL930
Microsoft 365E3 Add-on
Microsoft 365E5 USL
Microsoft 365E5 Add-on
Office Professional Plus
Office ProfessionalPlus
Office 365 ProPlus
Office 365 Plans
Office 365 Plan E1USL
Office 365 Plan E3USL
Office 365 Plan E5 USL
Office 365 Plan E1 Add-on
Office 365 Plan E3 Add-on
Office 365 Plan E5 Add-on
Office 365 Plan E3 without ProPlus Add-on
Client Access License (CAL)
Choose Core CALor Enterprise CAL:<Choose One><Choose One>
Core CALor Enterprise CAL
Bridge for Office 365
Bridge for Enterprise Mobility Suite
Windows Desktop
Windows 10 EnterpriseE3 and LTSB Upgrade
per Device
Windows 10 Enterprise E5 per Device SL
Windows 10 Enterprise E3 per User SL
Windows 10 Enterprise E3 per User Add-on SL
Windows 10 Enterprise E5 per User SL
Windows 10 Enterprise E5 per User Add-on SL
EA-EASProdSelForm(WW)(ENG)(Sep2017)Page 1of 3
Document X20-12822
EnterpriseDevice Profile
Products
Quantity(e.g.Call Center)
Windows 10 Enterprise E5 per Device Add-on
SL
Windows VDA
Windows VDA per User SL
MicrosoftIntune
MicrosoftIntuneUSL
Enterprise Mobility + Security
Enterprise Mobility + Security E3 USL
Enterprise Mobility + Security E3 Add-on
Enterprise Mobility + Security E5 USL
Enterprise Mobility + Security E5 Add-on
Step 3.Unless otherwise indicated in the associated
contract documents, the price level for each Product offering/pool is set based upon the quantity
to price level mapping. DO NOT INCLUDE BRIDGE CALs OR ADD-ONs.
Price
1234
Group
Windows Enterprise
E3 and LTSB
Upgrade+ Windows
Enterprise E5 +Win
Client Access
Office Professional E3/E5 USL + Win
Client Access License +
Plus + Office 365E3/E5 per Device+
License + Office MicrosoftIntune+
Enterprise ProPlus+ Office Windows VDA +
365 (Plans E1,Enterprise Mobility
Products365 (Plans Windows Enterprise
E3,andE5)+and SecurityUSL
E3and E5)+E3 per UserSL +
+Microsoft 365
Microsoft 365USL
Microsoft 365USLWindows Enterprise
USL
E5 per User SL +
Windows VDA per
UserUSL+
Microsoft 365USL
Quantity930930930930
Product Offering / PoolPrice Level
Enterprise Products and Enterprise Online ServicesUSLs: Unless
otherwise indicated in associated contract documents, Price Level is set using D
the highest quantity fromGroups 1 through 4.
Additional Product Application Pool:Unless otherwise indicated in
D
associated contract documents, Price Level is set using quantity from Group 1.
Additional Product Server Pool:Unless otherwise indicated in associated
contract documents, Price Level is set using the highest quantity from Group 2 D
or 3.
Additional Product Systems Pool:Unless otherwise indicated in associated
D
contract documents, Price Level is set using quantity from Group 4.
EA-EASProdSelForm(WW)(ENG)(Sep2017)Page 2of 3
Document X20-12822
Quantity of Licenses and Software Assurance to Price Level Mapping:
Quantity of Licenses and Software AssurancePrice Level
2,399 and belowA
2,400 to 5,999B
6,000 to 14,999C
15,000 and aboveD
Notes:
1.Enterprise Online Services may not be available in all locations.Please see the Product Terms
for a list of locations where these may be purchased.
2.If Enrolled Affiliate does not order an Enterprise Product or Enterprise Online Service associated
with an applicable Product pool, the price level for Additional Products in the same pool will be
oughout the term of the Enrollment.
3.Unless otherwise indicated in the associated Agreement documents, the CAL selection must be
the same across the Enterprise for each Profile.
This form must be attached to a signature form to be valid.
EA-EASProdSelForm(WW)(ENG)(Sep2017)Page 3of 3
Document X20-12822
May 21, 2019File ID: 19-0064
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING A
CONTRACT
FOR SERVICES TO THE AMERGROUPINC, DOING BUSINESS AS AMERICAN SECURITY GROUP,
FOR THE PURCHASE, INSTALLATION, AND MAINTENANCE OF INFORMATION, LEGAL POSTING AND
DIRECTIONAL DISPLAYS; AND APPROPRIATING FUNDS THEREFOR(4/5 VOTE REQUIRED)
RECOMMENDED ACTION
Council adopt the resolution.
SUMMARY
The City conducted a Request for Proposal (RFP P01-18/19) to solicit proposals to purchase, design and
installdisplays at the City Hall complex to post legal notices, and to provide interactive information and
directions to City services. The proposed resolution accepts the bids received and awards the contract for
services to the lowest responsive and responsible bidder, and appropriates funds for the project.
ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed project for compliance with the California
Quality Act (CEQA) and has determined that the project qualifies for a Categorical Exemption
Environmental
pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities), Section 15303 class 3 (New
Construction or Conversion of Small Structures), and Section 15061(b)(3), because it can be seen with
certainty that there is no possibility that the activity in question may have a significant effect on the
environment. Thus, no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The proposed project includes design and installation of seven interactive displays at the City Hall complex,
whichwill provide information and wayfinding services, andsatisfy legal requirements to post certain
documents for the public. In line with the objectives of the City’s Smart City Strategic Action Plan, the
proposed displaysprovidean innovative solution to address several needs for visitors to City Hall:
v.001 Page|1
1. LegallyRequiredPostings.City staff posts certain documents for public display,in compliance with the
California Government Code, and other regulations and best practices. Posted documents include:
-Agendas and cancellation notices for the City Council and the City’s boards and commissions;
-Notices of vacancies on City boards and commissions;
-A “Local Appointments List,”which includes a list of board and commission member terms that will
expire during a particular calendar year;
-Other postings required by the Ralph M. Brown Act, California’s open meeting act; and
-Actions taken during closed sessions of the City Council.
Approximately 430 such documents areposted each year in a locked bulletin board case, located in the City
Hall courtyard. To accommodate the volume of postings at a given time, the documents are downsized,
resulting in a7-to 8-point font size. Staff has received repeated feedback from the public that the documents
are difficult to read at that sizeand at the height of the bulletin board.
Anticipated Project Enhancements:
-Easier Document Viewing and Download Ability. The proposed displays would post these documents
55-inch touchscreensat a lower height, allowing the public to more easily view the documents.
on
Users will also be able to email themselves a link to the documents and available backup materials
for later viewing on their smartphone, computer, or other device.
-24/7 Monitoring and Reporting Services Included.Included in the project is system monitoring and
reporting,which will notify City staff of any outages, ensuringcompliance with posting requirements.
-Staff Time Savings.To post documents currently, staff travels to the City Clerk’s office to obtain the
keysfor the locked bulletin board, posts their document, and returns the keys to the City Clerk’s office
before returning to their workstation. With the electronic kiosks, staff will be able to post documents
directly to the electronic displays from their own workstations.Further, the vendor can integrate
with some third-party software, such as the software used to display City Council agendas online, so
that information can be posted to the electronic displays automatically, without staff intervention.
2. WayfindingServices at City Hall.Due to adecentralized layout and lack of directional signage at the City
Hallcomplex, a significant percentage of visitors to City Hall have difficulty locating their desired department
or service. In addition to causing frustration forvisitors, City staff spends a substantialamount of time
providing directionsto various locations and services. Staff at the City Hall complex’s main reception
counters estimate that60-80% of visitorsarelooking for a service in a different department or area.
Anticipated Project Enhancements:
-Improve Visitor Service. The displays include interactive wayfinding to show a path from the display
the visitor’s desired department, building or service. It will also include the ability to display
to
meetings and meeting locations.
-Staff Time Savings.According to a recent New York Times article, it takes an average of 25 minutes
1
fora typical office worker to resume a task following an interruption. In addition to improving
service for visitors by assisting them in finding their desired location more quickly, wayfinding
1
https://www.nytimes.com/2013/05/05/opinion/sunday/a-focus-on-distraction.html
Page|2
displays will reduce staff interruptions, improving productivity and allowing staff to focus attention
on other tasks.
3. Bilingual Display.The information and wayfinding displays willinclude a Spanish language presentation
option.The Spanish language option would be available for the wayfinding and other display information,
such as meetings, departments, and services. Upon initial launch, the posted documents (agendas, notices of
board/commission vacancies, etc.) will only be available in English. Staff is investigating possibilities related
to providing these documents in multiple languages as part of a different project.
Anticipated Project Enhancements:
-Improve Visitor Service. Most signage is currently only available in English. Individuals seeking
assistanceand directions in Spanish must visit one of the City’s public counters and request
interpretation services.
PROJECT SPECIFICS
-Display Placement. Considering frequently traveled paths and locations for the best visitor
experience,seven displays will be placed at the City Hall complex in the locationslisted below.
Displays will consist of 55’ touchscreens, with outdoor displays specially designed towithstand sun
and other elements and placed in enclosures that will provide protection from theft and vandalism.
Display locations:
Existing freestanding “docket” booth located outside of Council Chambers –outdoor
Pathway entrance from F Street visitor parking lot –outdoor
Pathway entrance from Davidson Street visitor parking lot –outdoor
West wall of Building B (Development Services), south of main entrance doors –outdoor
Lobby of Building A –indoor
Lobby of Building C(Human Resources) –indoor
Lobby of Council Chambers –indoor
-No advertisements. Staff has evaluated the possibility of including advertisements on the displays
andrecommends not doing so at this time, due to management and oversight requiredfor such a
program.
-Maintenance.A 72-monthmaintenance contract is included with this project.
VENDOR SELECTION.Request for Proposals RFP P01-18/19was created and posted on the City’s
purchasing portal, PlanetBids, and viable vendors were notified, in accordance with the City’s procurement
policies. The City held a mandatory meeting for interested vendors to familiarize themselves with the City
Hall campus layout and specific visitor needs. Two companies, American Security Group and Smartlink
Ventures, submitted qualified responses to the RFPand their qualifications were evaluated based on their
following criteria: experience, demonstrated results, innovative approach, and price. Evaluators were: 1)
Kerry Bigelow, City Clerk; 2) Edward Chew, Director of Information and Technology Services; and 3) Leilani
Hines, Housing Manager.
American Security Group is the recommended vendor, and has proposed partnering with Four Winds
Interactive. Four Winds Interactive is an award-winning visual communications company, with more than
Page|3
7,300 clients and 500,000 displays installed in over 80 countries, including displays for a variety of
government agencies.
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Councilmembers andhas found no property holdings
within1,000 feet of the boundaries of the propertywhich is the subject of this action. Consequently, this item
does not present adisqualifying real property-related financial conflict of interest under California Codeof
Regulations Title 2, section 18702.2(a)(7) or (8),for purposes of the PoliticalReform Act (Cal. Gov’t Code
§87100, et seq.).
Staff is not independently aware, and has not been informed by any City Councilmembers, of any other fact
that may constitutea basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
There is no impact to the General Fund for this project. The total proposed cost of the projectis $375,000,
whichwill be funded from the Public, Education, and Government (PEG) fund. PEGfunds are restricted to
specific uses for projects such as these and are not available for personnel expenses.
Included in the project cost is equipment and installation of the displays, as well as a 72-month, prepaid
maintenance program. Advance payment of the maintenance ensures a locked-in price with no price
escalators. Staff also recommends appropriating additional $50,000 for contingencies, to account for
unanticipated costs related to the project.
ONGOING FISCAL IMPACT
The full project cost, including prepaid maintenance for 72 months is included in the current-year fiscal
impact.
ATTACHMENTS
1. Contract for Services with American Security Group
Staff Contacts: Kerry Bigelow, City ClerkandEdward Chew, Directorof Information and Technology Services
Page|4
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING BIDS AND AWARDING A
CONTRACT FOR SERVICES TOTHEAMERGROUP INC,
DOING BUSINESS AS AMERICAN SECURITY GROUP, FOR
THE PURCHASE, INSTALLATION, AND MAINTENANCE OF
INFORMATION, LEGAL POSTING AND DIRECTIONAL
DISPLAYS;AND APPROPRIATING FUNDS THEREFOR
WHEREAS,the City desires to implement interactive displaysfor the City Hall campus
for posting legal documents and providing information and wayfinding services for visitors to the
City; and
WHEREAS, City staff issued Request for Proposal (RFP) P01-18/19to install the desired
displays, in accordance with the City’s procurement policies; and
WHEREAS, the City received two qualified responses and, following an evaluation of their
qualifications, selected American Security Groupto complete the projectand provide 72 months
of maintenance; and
WHEREAS, the project will be fundedvia the Public, Education, and Government (PEG)
Fund; and
WHEREAS, The Director of Development Services has reviewed the proposed project for
compliance with the California Environmental Quality Act (CEQA) and has determined that the
project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 15301
Class 1 (Existing Facilities), Section 15303 class 3 (New Construction or Conversion of Small
Structures), and Section 15061(b)(3), because it can be seen with certainty that there is no
possibility that the activity in question may have a significant effect on the environment. Thus, no
further environmental review is required.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it accepts the bids and awards a contract for services to The Amergroup, Inc, doing business
as American Security Group, for the purchase, installation, and maintenance of information, legal
posting, and directional displays
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it
approves the Contractor/Service Provider Services Agreement, between the City and The
Amergroup Inc, doing business as American Security Group, inthe form presented, with such
minor modifications as may be required or approved by the City Attorney, a copy of which shall
be kepton file in the Office of the City, and authorizesand directsthe Mayorto execute same;and
authorizes the City Manager or designee to execute all change orders and expend contingency
funds in an amount not to exceed $50,000;
C:\\Users\\legistar\\AppData\\Local\\Temp\\BCL Technologies\\easyPDF 8\\@BCL@400E1FA2\\@BCL@400E1FA2.docx
Resolution No.
Page 2
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista that it
appropriates $425,000 from the available balance of the Public, Education and Government Fund
for the project.
Presented byApproved as to form by
Kerry K. Bigelow, MMCGlen R. Googins
City ClerkCity Attorney
May 21, 2019File ID: 19-0264
TITLE
A.RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACKNOWLEDGING RECEIPT OF
COUNCIL
POLICY NO. 220-01, THE CITY OF CHULA VISTA INVESTMENT POLICY AND GUIDELINES;
AMENDING THE EXISTING POLICY; AND DELEGATING INVESTMENT ACTIVITY AUTHORITY TO THE
DIRECTOROF FINANCE/TREASURER
B.INVESTMENT REPORT FOR THE QUARTER ENDED MARCH 31, 2019
RECOMMENDED ACTION
Council adopt the resolutionand accept the report.
SUMMARY
Per California Government Code Section 53607, on an annual basis the City Council may delegate to the City
Treasurer the authority to conduct the investment activities of the City. And per Government Code Section
53646, the City Treasurer may annually present the City’s Investment Policy to the City Council to reaffirm
or make any changes to the existing policy. The Investment Policy provides guidelines for the investment
of idle funds and affords the City various investment opportunities, as long as the investment is deemed
prudent and is allowable under Government Code Section 53600, et seq. The Policy was reviewed and
adopted by City Council on May 22, 2018. At this time, staff is recommending changes to the policy to
clarify policy requirements, incorporatechanges made to the California Government Code, and include or
update Government Code references.
Transmitted herewith is the City’s investment report for the quarter ended March 31, 2019. To meet the
reporting requirements set forth in the California Government Code Sections 53600 et seq. and the City of
Chula Vista Investment Policy and Guidelines, a separate report was distributed to the City Council in April.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California
EnvironmentalQuality 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.
v.001 Page|1
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable
DISCUSSION
Investment Policy
The City’s Investment Policy and Guidelines was last amended on May 22, 2018 by Resolution 2018-090
and was intended to provide direction for the prudent investment of temporarily idle cash, and for
maximizing the efficiency ofthe cash management process. The stated goal is to enhance the economic
condition of the City while ensuring the safety of funds invested. The policy includes a list of specific
investment instruments available under the relevant California Government Code section 53600, et seq.
Each investment transaction is made in the context of first ensuring the “safety” of principal, second,
investing only for that timeframe that the cash is not needed for operational purposes (“liquidity”), and last
seeking the highest return possible (“yield”) provided that the first two factors are met.
Per section 18.0 of the Investment Policy, each fiscal year the Finance Director/Treasurer shall providea
copy of the Policy for adoption by the City Council. At this time, staff is recommending changes to the
policy to clarify policy requirements, incorporate changes made to the California Government Code, and
include or update Government Code references.
Quarterly Investment Report
The total cash and investment portfolio held by the City as of March 31, 2019 was $336,584,775 and total
cash and investments held by the trustees was $106,244,780.
The cash and investments held by the City are composed of the following components: Managed
Investment Portfolio ($258,970,213), State of CALocal Agency Investment Fund ($40,699,691), County of
San Diego Pooled Investment Fund ($10,554,500), Cash/Time Deposits ($24,532,702), and accrued interest
on investment ($1,827,669). Cash and investments held by the City and the trustees continue to be
invested in accordance with the Government Code and the Council Investment Policy as adopted by
Resolution 2018-090 on May 22, 2018.
During the quarter, eleven investments matured totaling $23,246,000. In order to maximize investment
earnings, $4,000,000 was transferred from the City’s Bank of America checking account to Bank of New
York Mellon and used for investment purchases. In addition, approximately $39,000,000 in short term
excess cash was transferred from Bank of America to the State of California Local Agency Investment Fund
(LAIF) in order to maximize interest earnings on the excess cash. The funds from the matured investments
and transfer to Bank of New York Mellon were utilized to purchase nineteen new securities. Those
investment purchases include: five federal agency bonds ($15,550,000); five corporate notes
($13,081,000); and nine certificates of deposit ($2,223,000). Accrued interest on investments totaled
$1,827,669 for the quarter.
Finance staff continued to manage the portfolio and work with multiple broker/dealers for investment
purchases throughout the quarter. Ongoing portfolio management activity will continue to be performed
Page|2
in-house by the Director of Finance and finance staff. There is no further activity to report onother than
routine investments by the City’s Finance Department.
At both the January and March meetings, the Federal Open Market Committee (FOMC) decided tomaintain
the federal funds rate at its current target range of 2.25% to 2.50%. In light of global economic and
financial developments and muted inflation pressures, the Committee will be patient as it determines what
future adjustments to the target range for the federal funds rate may be appropriate.
Two-year Treasuries yielding 2.48% at the beginning of the quarter ended lower at the end of the quarter
at 2.27%, which was a decrease of 21 basis points for the quarter.
As of March 31, 2019, the weighted yield to maturity on the Managed Investment Portfolio was 2.58%,
which was an increase of 5 basis points from the previous quarter. The City’s investment portfolio
continued to outperform the two-year treasury yield this quarter.
At the end of this quarter, the weighted average maturity of the Managed Investment Portfolio was 1.87
years, which is adecrease from 1.98 the previous quarter and is within the Council Policy.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific
and consequently, the real property holdings of the City Council members do not create a disqualifying real
property-related financial conflict of interest under the Political Reform Act (Cal. Gov’t Code Section 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.
CURRENT-YEAR FISCAL IMPACT
Considering the projected timing of cash receipts and disbursements and the structure of the Pooled
Investment Portfolio, the City should be able to comfortably meet overall cash flow needs over the next six
months. There is no direct fiscal impact by this action.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact by this action.
ATTACHMENTS
1.Summary of Cash and Investments as of March 31, 2019
2.Investment Report for the Quarter Ended March 31, 2019
3.Council Policy 220-01 Investment Policy and Guidelines
Staff Contact: David Bilby, Director of Finance/Treasurer, Finance Department
Lisa Partee, Fiscal and Management Analyst, Finance Department
Page|3
RESOLUTION NO. 2019-__________
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA ACKNOWLEDGING RECEIPT OF COUNCIL
POLICY 220-01, THE CITYOF CHULA VISTAINVESTMENT
POLICY AND GUIDELINES; AMENDING THE EXISTING
POLICY; AND DELEGATING INVESTMENT ACTIVITY
AUTHORITY TO THE DIRECTOR OF
FINANCE/TREASURER
WHEREAS,the City of Chula Vista’s “Investment Policy and Guidelines,” adopted on
May22,2018by Resolution No. 2018-090(the Policy), is intended to provide direction for the
prudent investment of temporarily idle cash and to maximize the efficiency of the cash
management process; and
WHEREAS, the stated goal of the Policy is to enhance the economic condition of the
City while ensuring the safety of funds invested; and
WHEREAS, the Policy includes a list of specific investment instruments available
pursuant to California Government Code sections53600,etseq.and 53635;and
WHEREAS,each investment transaction is made in the context of first ensuring the
"safety" of principal, second, investing only for that timeframe that the cash is not needed for
operational purposes ("liquidity"), and last seeking the highest return possible ("yield") provided
that the first two factors are met; and
WHEREAS, in accordance with Section 18.0 of the Policy, staff has provided the City
Council with a copy of the City’s Investment Policy; and
WHEREAS,staff recommends that the Policy beamended to clarify policy requirements,
incorporatechanges made to the California Government Code, and include or update
Government Code references; and
WHEREAS, City staff recommends that the Policy be amended to reflect these changes;
and
WHEREAS, pursuant to California Government Code section 53607, the City Council
may delegate the authority to conduct investment activities of the City to the Finance
Director/Treasurer on an annual basis.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
that:
It acknowledgesreceipt of council policy 220-01, the City of Chula Vista Investment
Resolution No. __________
Page 2
Policy and Guidelines
Amendsthe existing policyas reflected in Exhibit 1; and
Delegatesthe authority to conduct and supervise the investment activities of the Cityto
the Director of Finance/Treasurer.
Presented byApproved as to form by
_____________________________________________
David BilbyGlen R. Googins
Director of Finance/TreasurerCity Attorney
May 21, 2019File ID: 19-0208
TITLE
A. QUARTERLY FINANCIAL REPORT FORTHE QUARTER ENDING MARCH31, 2019
B.RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA MAKING VARIOUS AMENDMENTS
TO THE FISCAL YEAR 2018/19 BUDGET TO ADJUST FOR VARIANCES AND APPROPRIATING FUNDS
THEREFOR (4/5 VOTE REQUIRED)
RECOMMENDED ACTION
Council accept the report and adopt the resolution.
SUMMARY
The Finance Department, in collaboration with City departments, prepares quarterly financial reports for
General Fund that reflect budget to actual comparisons, projected revenues and expenditures, and
the
highlight major variances that may require additional action or changes as of March31, 2019. The
quarterly financial reports are in compliance with Section 504 (f) of the City Charter, which requires that
quarterly financial reports be filed by the Director of Finance through the City Manager.
In preparing the quarterly financial projections, staff has identified various budget changes that are needed
to reflect actual revenues and expenditures or address changes in budgetary needs. For government
entities, a budget creates a legal framework for spending during the fiscal year. After the budget is
approved by the City Council, there are circumstances which arise that could require adjustments to the
approved budget. Council Policy 220-02 “Financial Reporting and Transfer Authority” was established in
January of 1996 and allows for budget transfers and adjustments to be completed. This report discusses
budget adjustments that staff recommends in the General Fund as well as various other funds to address
identified fiscal issues.
In addition to the Fiscal Year 2018/2019budget recommendations for City funds, this report includes an
update on Measure P actual revenues and expendituresas of March31, 2019.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California
EnvironmentalQuality Act (CEQA) and has determined that filing of the quarterly financial status report is
not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a
physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA
Guidelines the actions proposed are not subject to CEQA.
Page|1
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
The ThirdQuarterReport is developed using ninemonths of recorded (July 2018 through March 2019)
activityfor Fiscal Year 2018/2019 as of March31, 2019. The data in this report is the most current data
available; however, the data and projections are subject to change.
This report will provide summary information for the following areas:
Major General Fund Revenues
Adjustments to General Fund Expenditures
Adjustments to non-General Fund funds
Update to the Measure P Fund
Attachment A –Quarterly Financial Report provides additional information for the financial outlook for the
General Fund for the current fiscal year including City revenues and expenditures;and a summary of the
Long Term Financial Plan (LTFP)covering FY 2020 –FY 2029.
The Finance Department will continue to monitor the City’s actual revenues and expenditures and will
provide any significant changes in subsequent quarterly budget monitoring reports.
General Fund Overview
The City’s FY 2019 financial outlook continued to be positiveasof the end of the thirdquarteras overall
GeneralFund revenuesare projected toexceed projected expendituresbyapproximately $2.1million. The
projected improvementisprimarily due to an anticipated positive correction from the State of California
related to the amount of sales tax allocated to the City; an improved projection for Measure Prevenues; a
positiveadjustment to the Property Tax In-Lieu Vehicle License Feebased upon updatedinformation from
the County of San Diego;and increased reimbursements from the Federal Government for deployment of
the City’s Fire Department Strike Team for assisting otherjurisdictions responding to emergency
situations(wildfires/storms). The increase in the aforementioned revenues is mitigated by increases in Fire
Department personnel expenses and transfers to the established Measure A funds (Measure A funds are
intended to solely support public safety needs and are transferred to specific funds for tracking and
monitoring). Additional information on General Fund revenue and expenditures are provided in the
attachmentto this report.
Major General Fund Revenues
The City’s major General Fund revenues, which make up approximately 68% of the City’s General Fund
revenues,are projected to be over the FY 2019 AmendedBudget (Amended Budget) amounts by
approximately $2.6million. The increased revenue projections are primarily due to anincreased projection
for theCity’sSales Tax Revenue ($1.0 million), increased collection of revenues related to the Measure P
Sales Tax ($1.2 million) and the increased projection forProperty Tax in Lieu of Vehicle License Fee($0.4
million). All other Major revenues are anticipated tomeet their projected revenue year-end estimates.
Table 1: Fiscal Year 2018/2019Major General Fund Revenue Projections summarizes the revenue
projections.
Page|2
Table 1 - Fiscal Year 2018/2019 Major General Fund Revenue Projections
FY 2019
FY 2019
Revenue CategoryVariance
Amended Budget Projected Budget
Property Tax$ 35,301,979$ 35,312,736$ 10,757
Sales Tax 33,698,020 34,674,606 976,586
Measure P Sales Tax 18,085,000 19,299,000 1,214,000
1
13,430,000 13,430,000 -
Measure A Sales Tax
PT in lieu of Motor Vehicle License
21,886,241 22,333,660 447,419
2
Fee (VLF)
Franchise Fees 11,691,841 11,691,841 -
Utility Users Taxes 5,605,396 5,605,396 -
Transient Occupancy Tax 4,102,798 4,102,798 -
Total$ 143,801,275$ 146,450,037$2,648,762
1
Measure A Sales Tax approved by Chula Vista votes in June 2018 and tax commenced on October 1,
2018. Figure represents revenue projections for three quarters of the fiscal year.
2
Property Tax in Lieu of Vehicle License Fees was previously accounted for as Motor Vehicle License
fees (VLF) in the State Revenue category. VLF was replaced by a backfill from property taxes
following the permanent reduction of the VLF rate from 2% to 0.65% in 2004.
The remaining General Fund revenues (not represented in Table 1) are anticipated to exceed the Amended
Budget by approximately $2.6million. The projected increase is revenue is primarily due to increased
reimbursements for the City’s Fire Department Strike Team ($1.6 million), an increase in the License and
Permit revenue category due to approximately$0.5 million in revenues generated from cannabis
application fees,and an increase ($0.4million) in transfers into the General Fund for services provided by
City staff.
All the General Fund revenue categories are shownin Attachment A. The overall General Fund revenues are
projected to exceed the Amended Budget by approximately $5.2million.
MajorGeneral Fund Expenditures
The City’s major General Fund expenditure categories, which make up approximately 78% of the City’s
FY2019 Projected Budgetexpenditures, are projected to exceed the Amended Budget by $1.9million. The
increase in expenditures is primarily due to increase personnel costs for the fire departmentand a slight
increase in the Supplies and Services expense category. The increase costs for the fire department
personnel are primarily related to the deployment of the Fire Department Strike Team. While there is an
increase in expenditures, these expenditures are generating revenue in the form of reimbursements for the
Fire Strike Team deployment to offset the cost.
As of the end of the thirdquarter, theexpenditure percentagesfor the major expense categories arein line
with expectations, excludingthe fire deployment expenditures. The major expense categories are shown in
the following table and additionalinformation related to departmental expenditures is provided in the
attachment.
Page|3
Table 2 - Fiscal Year 2018/2019 General Fund Major Expenditure Projections
FY 2019 Amended FY 2019 Projected Projected Budget Projected Budget
Revenue Category
Budget Budget Expended to dateExpended (%)
Personnel Services$ 128,335,059$ 129,927,559$ 97,573,61075.1%
Supplies and Services$ 14,041,561$ 14,331,207$ 10,776,19775.2%
Utilities$ 4,783,376$ 4,800,388$ 3,786,36078.9%
Total$ 147,159,996$ 149,059,154$ 112,136,16775.2%
Theremaining General Fund expenditure categories (not represented in Table 2) are anticipated to exceed
the Amended Budget by approximately $1.2million. This increase is primarily due to the increased
transfers of Measure A revenues from the General Fund tothe established Measure A funds. Overall, total
projected expenditures are anticipated to increase by $3.1million over the Amended Budget. Staff
continues to monitor expenses for potential impacts to current and future budgets.
One item of note is the assumed investment returns from the City’s pension system (California Public
Employees’ Retirement System -CalPERs). One of the factors which influencethe City’s annual pension
contribution (payment) is the annual investment return rate fromtheCalPERs investment portfolio. In
calculating the City’s pension contribution, CalPERs assumes a 7.25% return rate on their investments.
However, in the current financial environment, CalPERs investments may not reach their return rate target.
This would create a negative impact (increased contribution amount) on the projected future pension
payments for the City. Staff will continue to monitor this issue and will make any necessary adjustments to
the pension payment projections as more information is made available.
General Fund Adjustments
At the conclusion of the thirdquarter of FY2019, the proposed adjustments are minor inter-and intra-
Department transfers or areappropriations associated withoffsetting revenue. The proposed adjustments
are anticipated to resultin a net zero impact to theGeneral Fund.Thefollowing chart provides a summary
of the proposed budgetary adjustments.
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Table 3 - General Fund Adjustments Summary - 3rd Quarter Fiscal Year 2018-19
PERSONNELSUPPLIES &TOTALTOTAL
DEPARTMENT
FootnoteSERVICESSERVICESEXPENSEREVENUENET COST
GENERAL FUND
City Attorney's Office1(370,000)$ $ 370,000$ -$ -$ -
Non-Departmental2, 3, 5(222,395) 20,930(201,465)(255,930) (457,395)
Police3 225,000 225,000 225,000
Fire4 36,000 36,000 (36,000) -
Parks and Recreation5232,395 232,395 232,395-
Library6 54,724 54,724 (54,724)-
TOTAL GENERAL FUNDS$ (360,000)$ 706,654$ 346,654$ (346,654)$ -
General Fund Adjustments Footnotes
1 - City Attorney's Office - Transfer $370,000 in appropriations from Personnel Services salary savings to Supplies and
Services to address anticipated expenses in Fiscal Year 2019.
2 - Non-Departmental - Appropriate $9,050 in revenue and expense for reimbursement from United Health Care to
support the City's Wellness program; appropriate $11,880 in revenue and expenses for insurance claim on Building C to
make repairs due to a broken water pipe; appropriate $10,000 in revenue and expenses for recently negotiated MM/PR
labor agreement professional enrichment allocation; and, authorize the transfer of $15,600 from Professional Enrichment -
MM/PR to Professional Enrichment - MM UC/CF labor group as required under the current labor agreement.
3 - Police - Appropriate $225,000 in the Police Department in Supplies and Services for body worn police cameras, and
appropriate excess revenues in Non-Departmental from Property Tax in Lieu of VLF for $225,000.
4 - Fire Department - Appropriate $36,000 in revenue and expenses in Supplies and Services for the fire training program
5 - Parks and Recreation Department - Budget $232,395 correction related to the restructuring of the Parks Division when
the FY19 Budget was build, which incorrectly posted One time salary savings in both Parks and Recreation Budget and Non-
Departmental budget.
6 - Library - Appropriate $54,724 in revenue and expenses to Supplies and Services for passport services and donations.
The significant adjustments to the General Fund Expenditures are described below.
Appropriation of $0.2 million in the Police Department in Supplies and Services for body worn
policecameras, and appropriate excess revenue in Non-Departmental from Property Tax in Lieuof
VLF for $0.2 million to offset the expense.
Budgetary correction of $0.2 million related to the restructuring of the Parks Division in the FY
2019 Budget. One-time salary savings incorrectly posted to Parks Division.
Other Funds Adjustments
The following recommended adjustments are for funds outside of the General Fund. The proposed
adjustments, displayed in Table 4, have a net cost of approximately $0.4million, whichare entirely funded
with fund balances or current year available revenues. A brief discussion follows the table on the major
proposed adjustments.
Page|5
Other Funds Adjustments Summary - 3rd Quarter Fiscal Year 2018-19
PERSONNELSUPPLIES &OTHEROTHERCIPTRANSFERSTOTALTOTAL
FUND
FootnoteSERVICESSERVICESEXPENSESCAPITALBUDGETOUTUTILITIESEXPENSEREVENUENET COST
OTHER FUNDS
Transportation Grants-Gas Tax Fund1$ 320,000$ 320,000$ 320,000
Advanced Life Support Fund210,188 21,000 17,000 48,188 (48,188) -
Traffic Safety Fund3 25,000 25,000 25,000
Other Grants Fund4(100,000) (163,200) 265,793 (2,593) - -
Federal Grants Fund5 60,000 60,000 (10,000) 50,000
State Grants Fund632,707 28,400 3,401 64,508 (64,508) -
Environmental Services Fund7 122,000 22,000 10,520 154,520 (154,520) -
CFD 11-M Rolling Hills McM Fund8 (486) (486) (486)
CFD 12-M Otay Ranch Village 7 Fund9 (5,540) (5,540) (5,540)
CFD 12M Village 7 Otay Ranch Fund10 (2,326) (2,326) (2,326)
CFD 07M Eastlake Woods & Vista
Fund11 (5,304) (5,304) (5,304)
CFD 08M Vlg 6 McMillIn & OR Fund12 (3,940) (3,940) (3,940)
CFD 09M ORV II Brookfield-Shea Fund13 (5,488) (5,488) (5,488)
CFD 99-2 Otay Ranch Vlg 1 West Fund14 (4,192) (4,192) (4,192)
CFD 98-3 Sunbow 2 Fund15 (4,424) (4,424) (4,424)
CFD 97-1 Otay Ranch Fund16 5,633 (10,994) (5,361) (5,633) (10,994)
Eastlake Maintenance Dist. I Fund17 10,815 10,815 10,815
Open Space District #04 Fund18 8,000 8,000 8,000
Open Space District #14 Fund19 2,465 2,465 (2,465) -
Otay Ranch Reserve Fund20 35,150 35,150 35,150
Transit Capital Projects Fund21 165,827(165,827) - -
Development Services Fund22 176,000 176,000 (176,000) -
Transportation DIFs Fund23 (107,415)- (107,415)
Other Transportation Program Fund23 107,415 107,415 107,415
Measure P Fund (Org Key 220368)24 181,473 181,473 181,473
Measure P Fund (Org Key 220350)24(181,473) (181,473) (181,473)
Measure A Fund (Org Key 222088)25 (75,000) (75,000) (75,000)
Measure A Fund (Org Key 222160)25 75,000 75,000 75,000
TOTAL OTHER FUNDS$ (57,105)$ 321,090$ 463,793$125,886$ -$ 110,816$ 10,520$ 975,000$(568,729)$ 406,271
Other Fund Adjustments Footnotes
1 - Transportation Grants-Gas Tax - Appropriate $320,000 in expenses to purchase street sweeper and streets equipment from fund balance.
2 - Advanced Life Support Fund - Appropriate of $48,188 in expenses from fund balance to support program operations.
3 - Traffic Safety - Appropriate $25,000 from available fund balance to Supplies and Services.
4 - Other Grants - Reallocation of appropriations from Personnel Services, Supplies and Services, and Other Capital to Other Expenses to support program operations.
5 - Federal Grants - Appropriate $10,000 in both revenue and expenses; and, appropriate $50,000 from fund balance to Supplies and Services.
6 - State Grants - Appropriate $64,508 in both revenue and expenses from State Grant to Personnel Services, Supplies and Services, and Transfers Out.
7 - Environmental Services - Appropriate $154,520 in both revenue and expenses from CalRecycle program for Other Expenses, Supplies and Services, and Utilities.
8-16 - Appropriate $37,061 for the purchase of vehicles that were posted incorrectly as part of the 2nd Quarter report.
17 - Eastlake Maintenance Dist. I - Appropriate $10,815 from fund balance to Supplies and Services.
18 - Open Space District #04 - Appropriate $8,000 from fund balance to Supplies and Services.
19 - Open Space District #14 - Appropriate $2,465 in revenue and expenses for Supplies and Services.
20 - Otay Ranch Reserve - Appropriate $35,150 from fund balance to Supplies and Services.
21 - Transit Capital Projects - Reallocation of $165,827 in expense appropriations from Other Capital to Supplies and Services.
22 - Development Services Fund - Appropriate $176,000 in revenue and expenses to Other Expenses.
23 - Transfer $107,415 from the Other Transportation Program Fund to the Transportation DIFs Fund.
24 - Transfer of $181,473 in expense appropriation from Measure P Fund 220350 (CIP Expenditure) to Measure P Fund 220368 (CIP Expenditure) for Staff time reimbursements.
25 - Transfer of $75,00 in expense appropriation from Measure A Fund 222088 (Other Capital) to Measure A Fund 222160 (Other Capital) for phone equipment for dispatchers.
Measure PFund Overview
In November 2016, Chula Vista voters approved Measure P, authorizing a ½ cent sales tax increase on
retail sales within the City for ten years. The funding from the sales tax measure is to allow the City to make
progress toward replacing andrepairing failing City assets. In December 2016, the City Council adopted the
expenditure plan for the Measure P funding. The expenditure plan identified critical deferred maintenance
and infrastructure projects for which the Measure P funding was to be allocated toward.
The following table provides an update on the allocation and expenditures (unaudited) for the Measure P
funds.
Page|6
Measure P
Citywide Infrastructure, Facilities and Equipment Expenditure Plan
1/2 cent Sales Tax Revenues over 10 year period
Summary Table as of 3/31/19
10-YearUnauditedRemaining
Total by Major Category
TimeframeTotalsBalance
REVENUES:
Sales Tax Revenues186,299,869 34,270,188 152,029,681
Investment Earnings- 1,372,528 (1,372,528)
Miscellaneous- 150,842 (150,842)
Total Revenues$ 186,299,869$ 35,793,558$ 150,506,311
EXPENDITURES:
Fire Stations Repairs/Replacement24,611,549 146,481 24,465,068
Fire Response Vehicles19,847,580 4,816,393 15,031,187
Fire Safety Equipment 5,197,913 355,809 4,842,104
Total Fire Services$ 49,657,042$ 5,318,683$ 44,338,359
Police Response Vehicles13,301,470 2,383,311 10,918,159
Public Safety Communication Systems8,678,863 2,164,503 6,514,360
Police Facility Repairs2,101,000 604,039 1,496,961
Police Equipment611,145 159,719 451,426
Total Police Services$ 24,692,478$ 5,311,572$ 19,380,906
Streets24,474,861 6,816,635 17,658,226
Other Public Infrastructure14,154,295 1,461,801 12,692,494
Sports Fields and Courts16,966,595 595,819 16,370,776
Non-Safety Vehicles11,195,100 2,469,200 8,725,900
Recreation and Senior Centers5,000,000 233,254 4,766,746
Civic Center and South Libraries3,250,000 828,585 2,421,415
Other Public Facilities6,036,000 754,404 5,281,596
Traffic Signal Systems7,000,000 87,817 6,912,183
Park Infrastructure10,307,740 752,917 9,554,823
Citywide Network Replacement2,080,700 1,951,309 129,391
Citywide Telecommunications2,000,000 1,715,222 284,778
Total Infrastructure$ 102,465,291$ 17,666,963$ 84,798,328
Total Proposed Allocations$ 176,814,811$ 28,297,218$ 148,517,593
DECISION-MAKER CONFLICT
Staff has reviewed the property holdings of the City Council of the City of Chula Vista members and has
foundnoproperty holdings within 1,000 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.
Page|7
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy
Strong and Secure Neighborhoods and a Connected Community. This action supports the
Community,
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
The ThirdQuarter Monitoring Report presents updates to revenue and expenditure projections as of
March31, 2019. As a result of the revised projected revenues and expenditures within this report, the
overall General Fund revenues are projected to exceed projected expenditures byapproximately $2.1
million. Actions within this report result in a net zero impact to the General Fund budget. Staff will continue
to monitor actual revenue receipts and expenditures to determine if any budget adjustments will be
needed in the future.
Across the non-General Fund funds, multiple actions are recommended for the thirdquarter, leading to a
net cost of approximately $0.4million to non-General Fund accounts. These costs are to be addressed with
fund balances or revenues from current year services.
ONGOING FISCAL IMPACT
There is no ongoing fiscal impact related to this action for the General Fund.
ATTACHMENTS
1.FY2019 ThirdQuarter Financial Report
Staff Contact: David Bilby, Finance Department
Page|8
RESOLUTION NO. 2019-
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA MAKING VARIOUS AMENDMENTS TO THE
FISCAL YEAR 2018/19BUDGET TO ADJUST FOR
VARIANCES AND APPROPRIATING FUNDSTHEREFOR
WHEREAS,the City Charter states that at any meeting after the adoption of the budget,
the City Council may amend or supplement the budget by a motion adopted by the affirmative
votes of at least four members; and
WHEREAS,staff has completed the budget review forthe quarter ending
March 31, 2019and is recommending a number of budget amendments; and
WHEREAS, staff is recommending increasing$346,654in appropriations to various
departments in the General Fundand increasing revenuesby $346,654resulting in a net zero
impactto the General Fund; and
WHEREAS, theTransportation Grants –Gas Tax Fund, Traffic Safety Fund, Federal
Grants Fund, Eastlake Maintenance District IFund, Open Space District #04Fund, Otay Ranch
Reserve Fund, and Other Transportation Program Fund will be negatively impacted due to
adjustments that will add appropriations that will be made from the available balances of these
funds; and
WHEREAS, theCommunity Facilities District 11-M Rolling Hills McMillin Fund,
Community Facilities District 12-M Otay Ranch Village 7 Fund, Community Facilities District
12M Village 7 Otay Ranch Fund, Community Facilities District 07M Eastlake Woods & Vista
Fund,Community Facilities District 08M Village 6 McMillin & OR Fund,Community Facilities
District 09M ORV II Brookfield-Shea Fund,Community Facilities District 99-2 Otay Ranch
Village 1 West Fund,Community Facilities District 98-3 Sunbow 2 Fund, Community Facilities
District 97-1 Otay Ranch Fund, and Transportation DIFs Fund will be positively impacted asa
result of decreased appropriates resulting from the recommended changes; and
WHEREAS,t he recommended adjustments to the Advanced Life Support Fund,Other
Grants Fund, State Grants Fund, Environmental Services Fund, Open Space District #14, Transit
Capital Projects Fund, Development Services Fund, 2016 Measure P Sales Tax Fund, and the
Measure A Sales Tax Fund consist of offsetting adjustmentsbetween revenue and expenditure
categories and are neutral resulting in no net impact to these funds; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula
Vista, that it does hereby amend the fiscal year 2018/19budget and approves the following
appropriationsand transfers:
Summary of General Fund Appropriations and/or Transfers
General Fund Adjustments Summary - 3rd Quarter Fiscal Year 2018-19
PERSONNELSUPPLIES &TOTALTOTAL
DEPARTMENT
FootnoteSERVICESSERVICESEXPENSEREVENUENET COST
GENERAL FUND
City Attorney's Office1(370,000)$ $ 370,000$ -$ -$ -
Non-Departmental2, 3, 5 (222,395) 20,930(201,465)(255,930)(457,395)
Police3 225,000 225,000225,000
Fire4 36,000 36,000 (36,000) -
Parks and Recreation5232,395 232,395 232,395-
Library6 54,72454,724 (54,724)-
TOTAL GENERAL FUNDS$ (360,000)$ 706,654$ 346,654$ (346,654)$ -
General Fund Adjustments Footnotes
1 - City Attorney's Office - Transfer $370,000 in appropriations from Personnel Services salary savings to Supplies and
Services to address anticipated expenses in Fiscal Year 2019.
2 - Non-Departmental - Appropriate $9,050 in revenue and expense for reimbursement from United Health Care to
support the City's Wellness program; appropriate $11,880 in revenue and expenses for insurance claim on Building C to
make repairs due to a broken water pipe; appropriate $10,000 in revenue and expenses for recently negotiated MM/PR
labor agreement professional enrichment allocation; and, authorize the transfer of $15,600 from Professional Enrichment -
MM/PR to Professional Enrichment - MM UC/CF labor group as required under the current labor agreement.
3 - Police - Appropriate $225,000 in the Police Department in Supplies and Services for body worn police cameras, and
appropriate excess revenues in Non-Departmental from Property Tax in Lieu of VLF for $225,000.
4 - Fire Department - Appropriate $36,000 in revenue and expenses in Supplies and Services for the fire training program
5 - Parks and Recreation Department - Budget $232,395 correction related to the restructuring of the Parks Division when
the FY19 Budget was build, which incorrectly posted One time salary savings in both Parks and Recreation Budget and Non-
Departmental budget.
6 - Library - Appropriate $54,724 in revenue and expenses to Supplies and Services for passport services and donations.
Resolution No.
Page 3
Summary of Appropriations and/or Transfers for Other Funds
Other Funds Adjustments Summary - 3rd Quarter Fiscal Year 2018-19
PERSONNELSUPPLIES &OTHEROTHERCIPTRANSFERSTOTALTOTAL
FUND
FootnoteSERVICESSERVICESEXPENSESCAPITALBUDGETOUTUTILITIESEXPENSEREVENUENET COST
OTHER FUNDS
Transportation Grants-Gas Tax Fund1$ 320,000$ 320,000$ 320,000
Advanced Life Support Fund210,188 21,000 17,000 48,188 (48,188) -
Traffic Safety Fund3 25,000 25,000 25,000
Other Grants Fund4(100,000) (163,200) 265,793 (2,593) - -
Federal Grants Fund5 60,000 60,000 (10,000) 50,000
State Grants Fund632,707 28,400 3,401 64,508 (64,508) -
Environmental Services Fund7 122,000 22,000 10,520 154,520 (154,520) -
CFD 11-M Rolling Hills McM Fund8 (486) (486) (486)
CFD 12-M Otay Ranch Village 7 Fund9 (5,540) (5,540) (5,540)
CFD 12M Village 7 Otay Ranch Fund10 (2,326) (2,326) (2,326)
CFD 07M Eastlake Woods & Vista
Fund11 (5,304) (5,304) (5,304)
CFD 08M Vlg 6 McMillIn & OR Fund12 (3,940) (3,940) (3,940)
CFD 09M ORV II Brookfield-Shea Fund13 (5,488) (5,488) (5,488)
CFD 99-2 Otay Ranch Vlg 1 West Fund14 (4,192) (4,192) (4,192)
CFD 98-3 Sunbow 2 Fund15 (4,424) (4,424) (4,424)
CFD 97-1 Otay Ranch Fund165,633 (10,994) (5,361) (5,633)(10,994)
Eastlake Maintenance Dist. I Fund17 10,815 10,815 10,815
Open Space District #04 Fund18 8,000 8,000 8,000
Open Space District #14 Fund19 2,465 2,465 (2,465) -
Otay Ranch Reserve Fund20 35,150 35,150 35,150
Transit Capital Projects Fund21 165,827(165,827) - -
Development Services Fund22 176,000 176,000 (176,000) -
Transportation DIFs Fund23 (107,415)- (107,415)
Other Transportation Program Fund23 107,415 107,415 107,415
Measure P Fund (Org Key 220368)24 181,473 181,473 181,473
Measure P Fund (Org Key 220350)24(181,473) (181,473) (181,473)
Measure A Fund (Org Key 222088)25 (75,000) (75,000) (75,000)
Measure A Fund (Org Key 222160)25 75,000 75,000 75,000
TOTAL OTHER FUNDS$ (57,105)$ 321,090$ 463,793$125,886$ -$ 110,816$ 10,520$ 975,000$(568,729)$ 406,271
Other Fund Adjustments Footnotes
1 - Transportation Grants-Gas Tax - Appropriate $320,000 in expenses to purchase street sweeper and streets equipment from fund balance.
2 - Advanced Life Support Fund - Appropriate of $48,188 in expenses from fund balance to support program operations.
3 - Traffic Safety - Appropriate $25,000 from available fund balance to Supplies and Services.
4 - Other Grants - Reallocation of appropriations from Personnel Services, Supplies and Services, and Other Capital to Other Expenses to support program operations.
5 - Federal Grants - Appropriate $10,000 in both revenue and expenses; and, appropriate $50,000 from fund balance to Supplies and Services.
6 - State Grants - Appropriate $64,508 in both revenue and expenses from State Grant to Personnel Services, Supplies and Services, and Transfers Out.
7 - Environmental Services - Appropriate $154,520 in both revenue and expenses from CalRecycle program for Other Expenses, Supplies and Services, and Utilities.
8-16 - Appropriate $37,061 for the purchase of vehicles that were posted incorrectly as part of the 2nd Quarter report.
17 - Eastlake Maintenance Dist. I - Appropriate $10,815 from fund balance to Supplies and Services.
18 - Open Space District #04 - Appropriate $8,000 from fund balance to Supplies and Services.
19 - Open Space District #14 - Appropriate $2,465 in revenue and expenses for Supplies and Services.
20 - Otay Ranch Reserve - Appropriate $35,150 from fund balance to Supplies and Services.
21 - Transit Capital Projects - Reallocation of $165,827 in expense appropriations from Other Capital to Supplies and Services.
22 - Development Services Fund - Appropriate $176,000 in revenue and expenses to Other Expenses.
23 - Transfer $107,415 from the Other Transportation Program Fund to the Transportation DIFs Fund.
24 - Transfer of $181,473 in expense appropriation from Measure P Fund 220350 (CIP Expenditure) to Measure P Fund 220368 (CIP Expenditure) for Staff time reimbursements.
25 - Transfer of $75,00 in expense appropriation from Measure A Fund 222088 (Other Capital) to Measure A Fund 222160 (Other Capital) for phone equipment for dispatchers.
Presented byApproved as to form by
David BilbyGlen R. Googins
Director of Finance/TreasurerCity Attorney
Quarterly Financial Report
ThirdQuarter FY 2019Ending March31, 2019
Prepared –May2019
Overviewincrease of Sales Tax by the amount not
This financial report summarizes the City’s General distributed in FY 2018;
Fund financial position for Fiscal Year 2018-2019 (2)An increase of $1.6 million in
through March31, 2019, and projections for the reimbursements from the Federal
remainder of the year ending on June 30, 2019. The Government for deployment of the City’s Fire
purpose of this report is to provide the City Council, Department Strike Team toassist other
Management and the citizens of Chula Vista an jurisdiction in their dealing with emergency
update on the City’s fiscal status based on the most situations. The reimbursements for the
recent financial information.deployment of the Fire Department Strike
Team are difficult to estimate as deployment
This report also includes information fromthe City’s of staff is based upon emergency situations in
long-term financial plan (LTFP). The LTFP is a other jurisdictions and varies from year to
forecast of ten future years based upon information year. Based on deployment during the
available at the time and is updated annually to current fiscal year, staff is revising the
reflect the most current information available. The projected reimbursement amounts for this
full LTFP can be found on the City’s website at fiscal year;
https://www.chulavistaca.gov/departments/finance(3)An increase of $1.2 million isprojected to be
/financial-reports.collected from the Measure P Sales Tax;
however, this amount will be evaluated as
At the end of the thirdquarter, the City’sfinancial more data becomes available;
outlook is projected tocontinue to be positiveas (4)And an increase of $0.4 million to the
revised revenue projections are anticipated to exceed Property Tax In-Lieu of Vehicle License Fees
revisedexpenditure projections by $2.1millionas projectionbased on information provided by
the City is receiving one-time adjusted allocations in the County of San Diego after the
sale tax amounts and increased reimbursements development and adoption of the FY 2019
from the deployment offire department staff.Based Budget.
on current projections, revenues areanticipated to The proposed budgetaryadjustments are shown
increase by $5.2million and expenditures are within the respective revenue categories in the
projected to increase by $3.1million for a net following table.
positive difference of approximately $2.1million.
FY 2019 FY 2019
Revenue CategoryAmended Projected Variance
Budget Budget
Revenues
Property Taxes$ 35,301,979$ 35,312,736$ 10,757
The following table shows the FY 2019 General Fund
Sales Tax 33,698,020 34,674,606 976,586
Measure P Sales Tax 18,085,000 19,299,000 1,214,000
AmendedBudget revenues and the year-end
Measure A Sales Tax 13,430,000 13,430,000 -
ProjectedBudget revenues. The Projected Budget
PT in lieu of Motor Vehicle
21,886,241 22,333,660 447,419
License Fee (VLF)
includesall the change in projectionsincluded in this
Franchise Fees 11,691,841 11,691,841 -
report. Overall, General Fund revenues are projected
Utility Users Tax 5,605,396 5,605,396 -
to increase by approximately $5.2million above the
Transient Occupancy Taxes 4,102,798 4,102,798 -
Development Revenue 1,250,153 1,250,153 -
AmendedBudget amounts. The primary drivers of
License and Permits 1,448,143 1,987,643 539,500
the increase in revenue aredueto:
Fines, Forfeitures, Penalties 1,241,423 1,241,423 -
(1)The State of California did not distribute all of the
Use of Money & Property 2,953,166 2,953,166 -
Other Local Taxes 2,598,193 2,598,193 -
City’s Sales Tax revenue resulting in a decrease of
Police Grants 837,440 837,440 -
actual sales tax receipts for FY 2018 by
Revenue from Other Agencies1,346,964 1,338,964 (8,000)
approximately $1M. The City is now receiving FY
Charges for Services 7,921,718 7,921,718 -
Interfund Reimbursements 9,648,924 11,256,924 1,608,000
2018 Sales Tax during the current fiscal year.
Other Revenue 2,006,965 2,007,265 300
Based on information from the City’s sales tax
Transfers In 13,778,325 14,180,142 401,817
consultant, the City is projecting an overall
TOTAL REVENUES$188,832,689$194,023,068$5,190,379
1
Quarterly Financial Report
ThirdQuarter FY 2019Ending March31, 2019
Prepared –May2019
The Finance Department will continue to monitor the the Fire Department StrikeTeam and additional
City’s actual revenuesand will provide any significant transfers of Measure P funds from the General Fund.
changes in subsequent quarterly budget monitoring The transfer of funds will show as expenditures for
reports.the Non-Department budget. At the end of the fiscal
year, the Finance Department will be seeking to make
Expenditurestransfers from other expenditure categories with
The following table reflects the FY 2019 General projected savings and to appropriate available
FundAdopted Budget expenditures and actual revenues to fully utilize resources and mitigate any
expendituresby department as of March31, 2019. In departmental deficits.
total, departments have expended approximately
GENERAL FUND PROJECTIONS BY DEPARTMENT
$133.1 million or 71% of the General Fund Revised
FOR JUNE 30, 2019
Budget after 75% of the fiscal year has elapsed.
FY 2019 FY 2019
Overall, departmental expenditures are tracking
DepartmentRevised Projected Variance
BudgetBudget
consistent with thetotal Revised Budgetas of the end
$ 1,626,561 $ 1,626,561 $ -
City Council
of the thirdquarter. The Fire Department
27,783 27,783 -
Boards & Commissions
expenditures are trending higher than budgeted due
991,189 991,189 -
City Clerk
3,163,225 3,163,225 -
City Attorney
to increased personnel costs related to the
2,216,056 2,216,056 -
Administration
deployment of their strike team. Staff will continue to
3,817,967 3,817,967 -
Information Technology
monitor department expenditures to identify any
2,888,499 2,888,499 -
Human Resources
costs that might trend higher than anticipated and
3,987,938 3,987,938 -
Finance
38,693,602
39,907,603 1,214,001
Non-Departmental
proposed future actions to address these trends as
2,966,306 2,966,306 -
Animal Care Facility
appropriate.
2,128,750 2,136,750 8,000
Economic Development
2,900,096 2,900,096 -
Planning & Building
GENERAL FUND EXPENDITURES AS OF 3/31/2019
8,953,842 9,120,142 166,300
Engineering/Capital Project
Expended as %
FY 2019
56,625,786 56,698,061 72,275
Police
Department
Revised of 3/31/19Expended
30,827,479 32,453,059 1,625,580
Fire
1,115,078
$ 1,626,561 68.6%
City Council
11,823,153 11,842,152 18,999
Public Works
27,783 10,453 37.6%
Boards & Commissions
10,914,193 10,914,193 -
Parks and Recreation
991,189 746,474 75.3%
City Clerk
4,108,278 4,119,907 11,629
Library
2,043,825
3,163,225 64.6%
City Attorney
$ 188,660,703 $ 191,777,487 $ 3,116,784
TOTAL EXPENDITURE BUDGET
2,216,056 1,608,406 72.6%
Administration
3,817,967 2,507,595 65.7%
Information Technology
Staff will continue to monitor General Fund expenses
2,888,499 1,876,903 65.0%
Human Resources
3,987,938 2,804,218 70.3%
Finance
and look for potential cost saving measures in order
38,693,602 23,249,902 60.1%
Non-Departmental
to remain within budget during the current fiscal
2,966,306 2,129,162 71.8%
Animal Care Facility
year.
2,128,750 1,661,729 78.1%
Economic Development
2,900,096 1,993,960 68.8%
Planning & Building
8,953,842 6,216,244 69.4%
Engineering/Capital Project
LONG-TERM FINANCIAL PLAN UPDATE –
56,625,786 42,023,400 74.2%
Police
FISCAL YEARS 2020 TO 2024
30,827,479 23,925,727 77.6%
Fire
Afocus of this financial report is to review the Long-
11,823,153 8,489,917 71.8%
Public Works
10,914,193 7,885,955 72.3%
Term Financial Plan (LTFP) and lookbeyond the
Parks and Recreation
4,108,278 2,812,787 68.5%
Library
current fiscal year at fiscal issues facing the City on
$ 188,660,703 $ 133,101,736 70.6%
TOTAL EXPENDITURE BUDGET
the horizon.
The following table reflects the projected
The following tabledisplays the updated financial
expenditures for June 30, 2019. The largest projected
projections for fiscal years 2020 through 2024. A
budget variancesfor the year-end are within the Fire
more detailed table that includes all ten years is
Department and Non-Departmental. These variances
providedat the end of this report.
are due to the increased expenses noted previous for
2
Quarterly Financial Report
ThirdQuarter FY 2019Ending March31, 2019
Prepared –May2019
Long-Term Financial Plan FY 2020 - 2029
projections will continue to evolve as new
ForecastForecastForecastForecastForecast
Description
FY 2020FY 2021FY 2022FY 2023FY 2024
information becomes available. Theprojections
Revenue Projections (millions)
MAJOR DISCRETIONARY REVENUES$ 151.54$ 154.30$ 157.19$ 160.15$ 163.17 within this reportassume continued economic
OTHER REVENUES$ 45.28$ 45.22$ 45.07$ 45.37$ 45.67
growth. Even a small or short-lived economic
NEW DEVELOPMENT REVENUES$ -$ 3.41$ 4.18$ 4.52$ 4.83
TOTAL REVENUES$ 196.82$ 202.94$ 206.44$ 210.03$ 213.67
downturn will amplify the projected deficits shown in
Year-over-Year Change4.65%3.11%1.73%1.74%1.73%
the LTFP.
Expenditure Projections (millions)
PERSONNEL SERVICES EXPENDITURES$ 132.71$ 138.17$ 143.42$ 148.88$ 153.74
OTHER EXPENDITURES$ 64.12$ 69.16$ 70.92$ 70.58$ 71.79
NEW DEVELOPMENT EXPENDITURES$ -$ 2.14$ 2.88$ 2.99$ 3.11
SUMMARY AND NEXT STEPS
TOTAL EXPENDITURES$ 196.82$ 209.47$ 217.21$ 222.45$ 228.64
Year-over-Year Change4.65%6.43%3.69%2.41%2.78%
TOTAL GENERAL FUND SURPLUS/(DEFICIT)$ 0.00$ (6.54)$ (10.77)$ (12.42)$ (14.97)
At the conclusion of the thirdquarter of fiscal year
SURPLUS/(DEFICIT) AS % OF BUDGET0.00%-3.12%-4.96%-5.58%-6.55%
2018-19, the current year budget is on track for
HIGH PRIORITY PROGRAMS
1
Peace Officer Funding$ 0.81$ 1.72$ 2.71$ 3.80$ 4.96
revenues and expenditures, with minor
TOTAL GENERAL FUND SURPLUS/(DEFICIT)$ (0.81)$ (8.25)$ (13.48)$ (16.22)$ (19.94)
SURPLUS/(DEFICIT) AS % OF BUDGET-0.41%-3.94%-6.21%-7.29%-8.72%
modifications. Staff is watching expenditures and
(1) 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
revenue projectionsto assess whether further
Sale Tax Measure.
modifications will be necessary later in the year.
The LTFP assumes the FY 2020 Budget will be
The longer-termprojections for the City’s General
balanced. Based on a balanced FY 2020 Budget, the
Fund continue to pose serious challenges,because
LTFP projects budgetdeficits beginning in FY 2021.
revenues will not be sufficient to cover projected
Assuming no additional financial measures or policy
coststhat are on the horizon. Because the City has
changes to either increase revenues or reduce
limited abilities to impact near-term revenue, its staff
expenditures,FY 2021projects a revenue shortfall of
and policy makers will need to focus their efforts on
$6.5million, growing to a deficit of $15.0million in
the cost side by finding savings, modifying service
FY 2024and $31.0million in FY 2029.
levels, costcuts or cost delays for the upcoming year,
even as efforts continue to address economic
For revenues, additional revenue sources or
development opportunities throughout the City.
increasing growth in existing revenue sources will be
needed. The City of Chula Vista continues to pursue
development opportunities that have the potential to
positively impact revenue for the City.These include
the development of the Eastern Urban Center
(Millenia) and the approval of theBayfront
Development Project. However, these large
developments are still several years away from being
built and occupied.
For expenditures, the most significant drivers ofthe
long-term grow in expenses are related to the
increase in public safety costs and the increasing
costs associated with public employee salaries and
benefits.
Future Year Budget Balancing
The purpose of this review is to highlight the
structural imbalances that the City will face in the
comingfiscal years, and to focus problem solving
efforts toward a menu of viable options. These
3
Quarterly Financial Report
ThirdQuarter FY 2019Ending March31, 2019
Prepared –May2019
Long-Term Financial Plan FY 2020 - 2030
ForecastForecastForecastForecastForecastForecastForecastForecastForecastForecastForecast
Description
FY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026FY 2027FY 2028FY 2029FY 2030
Revenue Projections (millions)
Property Taxes$ 36.36$ 37.45$ 38.57$ 39.72$ 40.91$ 42.13$ 43.39$ 44.69$ 46.03$ 47.40$ 48.82
Sales Tax 34.19 34.53 34.87 35.22 35.58 35.93 36.29 36.65 37.02 37.39 37.76
Measure P Sales Tax 18.27 18.45 18.63 18.82 19.01 19.20 19.39 14.69 - - -
Measure A Sales Tax 18.27 18.45 18.63 18.82 19.01 19.20 19.39 19.97 20.57 21.19 21.82
Franchise Fees 11.93 12.16 12.41 12.66 12.91 13.17 13.43 13.70 13.97 14.25 14.54
Utility Users Taxes 5.63 5.66 5.69 5.72 5.75 5.78 5.81 5.83 5.86 5.89
5.92
Transient Occupancy Taxes 4.36 4.38 4.47 4.56 4.65 4.74 4.84 4.93 5.03 5.13
5.24
Motor Vehicle License Fees 22.54 23.22 23.92 24.63 25.37 26.13 26.92 27.73 28.56 29.41 30.30
MAJOR DISCRETIONARY REVENUES$ 151.54$ 154.30$ 157.19$ 160.15$ 163.17$ 166.28$ 169.45$ 168.19$ 157.04$ 160.67$ 164.40
Development Revenue 1.48 1.48 1.49 1.50 1.50 1.51 1.52 1.52 1.53 1.53
1.54
Licenses and Permits 1.45 1.51 1.54 1.57 1.60 1.63 1.66 1.70 1.73 1.77
1.80
Fines, Forfeitures & Penalties 1.27 1.29 1.32 1.34 1.37 1.40 1.43 1.46 1.48
1.51 1.54
Use of Money and Property 3.07 3.09 3.12 3.15 3.17 3.20 3.23 3.26 3.29 3.32
3.35
Other Local Taxes 2.60 2.65 2.68 2.70 2.73 2.76 2.79 2.81 2.84 2.87
2.90
Police Grants 0.82 0.84 0.84 0.84 0.84 0.84 0.84 0.84 0.84 0.84
0.84
Other Agency Revenue 2.20 2.30 2.32 2.34 2.36 2.39 2.41 2.44 2.46 2.49
2.51
Charges for Services 6.93 7.96 8.01 8.05 8.10 8.14 8.19 8.24 8.31 8.37
8.41
Interfund Reimbursements 10.66 10.76 10.42 10.53 10.63 10.74 10.85 10.95 11.06 11.17 11.29
Other Revenues - Miscellaneous 1.14 1.15 1.15 1.16 1.16 1.17 1.17 1.18 1.19
1.19 1.20
Transfers From Other Funds 13.68 12.20 12.20 12.20 12.20 12.20 12.20 12.20 12.20 12.20 12.20
OTHER REVENUES$ 45.28$ 45.22$ 45.07$ 45.37$ 45.67$ 45.97$ 46.27$ 46.60$ 46.93$ 47.25$ 47.57
NEW DEVELOPMENT REVENUES
Property Taxes - New Development - 0.68 0.72 0.76 0.80 0.84 0.89 0.93 0.96
0.99 1.02
Sales Tax - New Development - 0.35 0.39 0.44 0.46 0.48 0.49 0.51 0.53 0.54
0.56
Franchise Fees - New Development - 0.24 0.24 0.25 0.25 0.26 0.26 0.26 0.27
0.27 0.28
Utility Users Taxes - New Development - 0.14 0.17 0.20 0.23 0.26 0.29 0.29 0.29
0.30 0.30
Transient Occupancy Taxes - New Development - 0.55 1.04 1.07 1.10 1.13 1.16 1.19 1.22
1.26 1.29
Motor Vehicle License Fees - New Development - 0.71 0.75 0.78 0.82 0.86 0.91 0.95 1.00
1.05 1.10
Other Revenues - Miscellaneous - New Development - 0.50 0.62 0.74 0.86 0.98 1.06 1.16
1.17 1.18 1.20
Other Local Taxes - New Development - 0.26 0.26 0.28 0.31 0.33 0.35 0.30 0.30
0.31 0.31
NEW DEVELOPMENT REVENUES$ -$ 3.41$ 4.18$ 4.52$ 4.83$ 5.13$ 5.40$ 5.60$ 5.74$ 5.89$ 6.05
TOTAL REVENUES$ 196.82$ 202.94$ 206.44$ 210.03$ 213.67$ 217.37$ 221.12$ 220.39$ 209.71$ 213.82$ 218.02
Year-over-Year Change4.65%3.11%1.73%1.74%1.73%1.73%1.73%-0.33%-4.85%1.96%1.96%
Expenditure Projections (millions)
Personnel Services$ 92.92$ 93.59$ 94.89$ 96.66$ 98.47$ 100.32$ 102.20$ 104.12$ 106.10$ 108.11$ 111.15
Retirement - PERS 30.48 33.51 36.19 38.50 40.02 41.76 43.51 45.32 47.22 49.20 51.26
Health Insurance 11.77 12.94 14.24 15.66 17.23 18.95 20.84 22.93 25.22 27.74 30.52
Salary Savings (On Going) (2.45) (1.87) (1.90) (1.93) (1.97) (2.01) (2.04) (2.08) (2.12) (2.16)
(2.22)
PERSONNEL SERVICES EXPENDITURES$ 132.71$ 138.17$ 143.42$ 148.88$ 153.74$ 159.02$ 164.51$ 170.29$ 176.42$ 182.89$ 190.71
Supplies and Services 12.41 16.68 17.81 16.65 17.09 17.09 17.23 17.59 17.95 18.32 18.69
Utilities 5.01 4.53 4.79 5.07 5.40 5.71 6.04 6.39 6.76 7.16 7.57
Other Expenses 0.78 0.93 0.93 0.95 0.97 0.99 1.02 1.03 1.05 1.07
1.09
Equipment (Capital not CIP) 0.28 0.22 0.22 0.22 0.22 0.22 0.22 0.22 0.22
0.22 0.22
Internal Services 2.97 3.03 3.09 3.15 3.21 3.28 3.34 3.41 3.48 3.55
3.62
Measure A Obligations 18.27 18.45 18.63 18.82 19.01 19.20 19.39 19.97 20.57 21.19 21.82
Transfers/Debt Service 24.39 25.33 25.45 25.72 25.89 26.06 26.24 21.29 6.70 6.80
6.81
OTHER EXPENDITURES$ 64.12$ 69.16$ 70.92$ 70.58$ 71.79$ 72.54$ 73.48$ 69.90$ 56.73$ 58.30$ 59.82
NEW DEVELOPMENT EXPENDITURES
Millenia Parks Maintenance - 0.40 0.41 0.42 0.42 0.43 0.44 0.45 0.46 0.46
0.46
Millenia Fire Station - 1.74 1.83 1.91 1.99 2.08 2.16 2.25 2.32 2.36
2.36
Bayfront Fire Station - - 0.64 0.67 0.69 0.72 0.74 0.77 0.79 0.80
0.80
NEW DEVELOPMENT EXPENDITURES$ -$ 2.14$ 2.88$ 2.99$ 3.11$ 3.23$ 3.34$ 3.47$ 3.57$ 3.62$ 3.62
TOTAL EXPENDITURES$ 196.82$ 209.47$ 217.21$ 222.45$ 228.64$ 234.80$ 241.34$ 243.66$ 236.72$ 244.81$ 254.14
Year-over-Year Change4.65%6.43%3.69%2.41%2.78%2.69%2.78%0.96%-2.85%3.42%3.81%
TOTAL GENERAL FUND SURPLUS/(DEFICIT)$ 0.00$ (6.54)$ (10.77)$ (12.42)$ (14.97)$ (17.43)$ (20.21)$ (23.28)$ (27.01)$ (31.00)$ (36.13)
SURPLUS/(DEFICIT) AS % OF BUDGET0.00%-3.12%-4.96%-5.58%-6.55%-7.42%-8.38%-9.55%-11.41%-12.66%-14.22%
HIGH PRIORITY PROGRAMS
1
Peace Officer Funding$ 0.81$ 1.72$ 2.71$ 3.80$ 4.96$ 6.24$ 7.59$ 9.05$ 10.52$ 11.98$ 13.47
TOTAL GENERAL FUND SURPLUS/(DEFICIT)$ (0.81)$ (8.25)$ (13.48)$ (16.22)$ (19.94)$ (23.67)$ (27.80)$ (32.33)$ (37.52)$ (42.97)$ (49.60)
SURPLUS/(DEFICIT) AS % OF BUDGET-0.41%-3.94%-6.21%-7.29%-8.72%-10.08%-11.52%-13.27%-15.85%-17.55%-19.52%
(1) 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.
4
May 21, 2019File ID: 19-0248
TITLE
A. PRESENTATIONOF THE CITY MANAGER’S PROPOSED BUDGET FOR FISCAL YEAR 2019/2020
B.RESOLUTION OF THE CITY COUNCIL/SUCCESSOR AGENCY TO THE REDVELOPMENT
AGENCY/HOUSING AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING THE CITY MANAGER’S
PROPOSED OPERATING AND CAPITAL IMPROVEMENT BUDGETS FOR FISCAL YEAR 2019/2020 FOR EACH
AGENCY AS THEIR PROPOSED BUDGETS, RESPECTIVELY, AND SETTING THE TIME AND PLACE FOR A
PUBLIC HEARING FOR FINAL CONSIDERATION AND ADOPTION OF SAME
RECOMMENDED ACTION
Council/Successor Agency/Housing Authority hear the presentation, provide comments, and proposed
If Council is prepared to approve the budget, with or withoutmodifications, as the City Council
changes.
Proposed Budget, the City Council/Successor Agency/Housing Authority may adopt the resolution and set
the time and place for a public hearing for final consideration and adoption of the budget.
SUMMARY
In accordance with the City Charter, the City Manager has submitted the proposed budget for the upcoming
fiscalyear to the City Council at least 35 days prior to the beginning of fiscal year 2019-20. Staff
recommends that the Council/Successor Agency/Housing Authority hear the presentation, provide
comments, and proposed changes (if any). If Council is prepared to approve the budget, with or without
modifications, as the City Council Proposed Budget, the City Council/Successor Agency/Housing Authority
may adopt the resolution and set the time and place for a public hearing for final consideration and
adoption of the budget.
ENVIRONMENTAL REVIEW
The Development Services Director has reviewed the proposed activity for compliance with the California
EnvironmentalQuality Act (CEQA) and has determined that filing of the quarterly financial status report is
not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a
physical change to the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA
Guidelines the actions proposed are not subject to CEQA.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
Page|1
DISCUSSION
In accordance with the City Charter, the City Manager has submitted the proposed budget for the upcoming
fiscalyear to the City Council at least 35 days prior to the beginning of fiscal year 2019-20. The City
Manager has prepared and provided the proposed operating and capital improvement budgets to the City
Council, and has also prepared the proposed budgets for the Successor Agency to the Redevelopment
Agency and the Housing Authority, and presented them to their respective governing bodies, for fiscal year
2019-2020. The City Manager’s Proposed Budget for Fiscal Year 2019-20has been made available on the
City’s website and a hard copy of the document is available for public review at the City Clerk’s Office. Staff
is now seeking City Council input on the City Manager’s Proposed Budget for fiscal year 2019-20. Once
Council has approved the CityManager’s Proposed Budget for fiscal year 2019-20as their own, with or
without changes, staff will make the City Council’s Proposed Budget for fiscal year 2019-20available for
public review by publishing the budget on the City’s website and making a copy available at the City Clerk’s
Office at least ten days prior to the public hearing. If Council chooses to adopt the resolution, the public
hearing for the final consideration and adoption of the budget will be held on June 4, 2019.
The Political Reform Act requires every local agency to amend its conflict of interest code when revisions
are necessitated by changed circumstances. The proposed resolution adopts an amended appendix to the
City’s conflict of interest code to add new classifications to the list of officials and designated employees of
the City who are required to file periodic statements of economic interests, and establishes the disclosure
categories under which the classifications would be required to file. Additionally, it requires the designated
officials and employees to complete biennial ethics training, pursuant to AB 1234.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific
andconsequently, the real property holdings of the City Council/Successor Agency to the Redevelopment
Agency/Housing Authority members do not create a disqualifying real property-related financial conflict of
interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware, and has not been informed by any City Council/Successor Agency to the
Redevelopment Agency/Housing Authority member, of any other fact that may constitute a basis for a
decision-maker conflict of interest in this matter.
LINK TO STRATEGIC GOALS
The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy
Community,Strong and Secure Neighborhoods and a Connected Community. This action supports the
Operational Excellence goal by communicating the City’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
Thereis no fiscal impact as a result of this action in the current fiscal year.
Page|2
ONGOING FISCAL IMPACT
There is no fiscal impact as a result of the City Council accepting the City Manager’s Proposed Fiscal Year
2019-20budget as their own. With approval of theresolution, Council will set the time and date for the
final consideration and adoption of the fiscal year 2019-20budget.
Council changes to the proposed budget may result in a fiscal impact.
ATTACHMENTS
Staff Contact: David Bilby, Finance Department
Page|3
RESOLUTION NO. __________
RESOLUTION OF THE CITY COUNCIL/SUCCESSOR
AGENCY TO THE REDEVELOPMENT AGENCY/ HOUSING
AUTHORITY OF THE CITY OF CHULA VISTA ACCEPTING
THE CITY MANAGER’S PROPOSED OPERATING AND
CAPITAL IMPROVEMENT BUDGETS FOR FISCAL YEAR
2019-2020FOR EACH AGENCY AS THEIR PROPOSED
BUDGETS, RESPECTIVELY, AND SETTING THE TIME AND
PLACE FOR A PUBLIC HEARING FOR FINAL
CONSIDERATION ANDADOPTION OF SAME
WHEREAS, the City Charter requires that the City Manager submit the proposed budget
for the upcoming fiscal year to the City Council at least 35 days prior to the beginning of such
fiscal year; and
WHEREAS, the City Manager has prepared and provided the proposed operating and
capital improvement budgets to the City Council, and has also prepared the proposed budgets for
the Successor Agency to the Redevelopment Agency and the Housing Authority, and presented
them to their respective governing bodies, for fiscal year 2019-2020; and
WHEREAS, the City Council, Successor Agency to the Redevelopment Agency and
Housing Authority have received the City Manager’s budget report and the respective proposed
budgets for each agency for review and approval as their proposed budgets; and
WHEREAS, a public hearing shall be held prior to adoption of the proposed budgets and
the proposed budgets, and notice of the proposed hearing, shall be published at least ten days
prior to the public hearing.
NOW, THEREFORE, BE IT RESOLVED by the City Council/Successor Agency to the
Redevelopment Agency/Housing Authority of theCity of Chula Vista that the City Manager’s
budget report for fiscal year 2019-20is approved, and the City Manager’s proposed operating
and capital improvement budgets for fiscal year 2019-20for each agency are approved as their
respective proposed budgets.
BE IT FURTHER RESOLVED that a public hearing shall be held onthe proposed
budgets on June 4, 2019, and that the City Clerk is directed to publish the proposed budgets, in
the form presented, for public inspection, and provide notice of the public hearing, at least ten
days prior to the hearing date.
Presented byApproved as to form by
David BilbyGlen R. Googins
Director of Finance/TreasurerCity Attorney
EXPENDITURES
Supplies & Services4,33363,50057,900
Other Expenses4,118,7314,039,2372,008,500
Other Capital2,7006,0006,000
TOTAL EXPENDITURES$ 4,125,764125,893$ 4,108,737$$2,072,400
REVENUES
(384,938)(215,000)(215,000)
Charges for Services(12,360)--
Other Revenue(4,185,012)(255,000)(255,000)
TOTAL REVENUES$(1,180,976)$(4,582,310)$(470,000)$(470,000)
NET PROGRAM EXPENDITURES$(1,055,082)$(456,546)$3,638,737$1,602,400
CAPITAL IMPROVEMENT BUDGET
Funding Summary by Project Type
FY 2019-20
PROPOSED
$3,104,447
Fire Stations Repairs/Replacements (Measure P)
GGV0230
Civic Center and South Chula Vista Libraries (Measure P)$250,000
GGV0231
$100,000
Police Facility Repairs (Measure P)
GGV0232
($1,500,000)
Recreation and Senior Center Repairs (Measure P)
GGV0233
Fire Station 2 Fueling Tank Replacement (Measure P)$761,383
GGV0242
$150,000
Police Facility Sewer Pump Station Relocation
GGV0245
$150,000
City Hall Emergency Storage Addition for Sewer Pump Station
GGV0246
Loma Verde Aquatic and Recreation Center Phase I (Measure P)$1,500,000
GGV0247
$365,000
Millenia Fire Station
SAF0169
TOTAL$4,880,830
DRAINAGE
FY 2019-20
PROPOSED
$0
Telegraph Canyon Channel Improvements
DRN0208
$50,000
Installation of Full Capture Trash BMPs
DRN0214
DRAINAGE TOTAL$50,000
GENERAL GOVERNMENT
FY 2019-20
PROPOSED
$60,000
CIP Advanced Planning
CTY0202
$85,000
Pavement Management System
CTY0219
GENERAL GOVERNMENT TOTAL$145,000
PARKS
FY 2019-20
PROPOSED
$137,654
Park Infrastructure (Measure P)
PRK0326
$50,000
Salt Creek Community Park Pump Station
PRK0334
PARKS TOTAL$187,654
CAPITAL IMPROVEMENT BUDGET
Funding Summary by Project Type
ROADWAY
FY 2019-20
PROPOSED
$64,000
Bikeway Pedestrian Master Plan 2016 Update
STL0404
$110,000
Kellogg Elem. School Pedestrian Improvements
STL0410
$510,000
Sidewalk Gap Third Ave W/S Orange Ave to Anita St, E/S Anita St to Zenith St
STL0426
$0
D Street Sidewalk Project
STL0436
$100,000
Eastbound Right Turn Lane Installations along East H St Study
STL0437
$135,635
Sweetwater River Bikeway Connections/30th Street Bicycle Facility
STL0438
Improvements
$189,500
Sidewalk Replacement Program FY2019/20
STL0439
$1,410,451
Pavement Minor Rehabilitation FY2019/20
STL0440
$200,000
Bikeway Facilities Gap Program
STM0369
$65,000
Bridge Maintenance
STM0385
$0
Heritage Road Bridge Replacement Project
STM0386
$3,358,586
Major Pavement Rehabilitation
STM0397
$75,000
I-805 Main Street Interchange Project Initiation Document (PID)
STM0399
$4,427,612
RMRA Major Pavement Rehabilitation FY2019/20
STM0400
$70,000
Traffic Count Station Program
TRF0274
$94,000
Citywide Traffic Data Program
TRF0321
$300,000
Neighborhood Traffic and Pedestrian Safety Program
TRF0327
$75,000
Signing and Striping Program
TRF0332
$270,000
School Zone Traffic Calming Program
TRF0345
$330,000
Traffic Signal System Optimization Program
TRF0350
$298,753
Traffic Congestion Relief Program
TRF0354
$300,000
Traffic Signal and Streetlight Systems Upgrade and Modification Program
TRF0366
$175,000
Hazel G Cook Elementary School Pedestrian Improvements
TRF0384
$50,000
Traffic Signal Installation at Main Street and Jacqua Street
TRF0398
$580,000
Traffic Signal Modifications at Five Intersections
TRF0407
$0
Traffic Signal Modifications (Measure P)
TRF0408
$210,000
Traffic Signal Upgrades at Two Locations
TRF0412
$60,000
Ladder Crosswalks at all Controlled Intersection Program
TRF0413
$100,000
Third Ave at Seavale St Ped Street Improvements
TRF0414
$175,000
Telegraph Canyon Road Raised Median Improvements
TRF0415
$1,000,000
Intersection Safety Improvements
TRF0416
$90,000
Installation of Enhanced Crosswalks in School Zones
TRF0417
CAPITAL IMPROVEMENT BUDGET
Funding Summary by Project Type
ROADWAY
FY 2019-20
PROPOSED
$2,333,900
Installation of Lead Pedestrian Interval Traffic Signal Operations
TRF0418
ROADWAY TOTAL$17,157,437
WASTEWATER
FY 2019-20
PROPOSED
$375,000
Parkside Drive Lift Station Upgrades
SWR0293
$200,000
Salt Creek Interceptor Condition Assessment (Portions)
SWR0310
$1,076,796
Poggi Canyon Sewer Improvements on Olympic Parkway at Concord Way
SWR0311
$1,725,000
Sewer Rehab- K Street (300 Block) and Third Avenue (700 Block)
SWR0312
$350,000
Sewer Access Road Rehabilitation Program FY2019/20
SWR0313
$200,000
Sewer Manhole Rehabilitation FY2019/20
SWR0314
$150,000
Sewer Manhole Inspection Program FY2019/20
SWR0315
$300,000
Sewer Pipe Rehabilitation FY2019/20
SWR0316
WASTEWATER TOTAL$4,376,796
GRAND TOTAL - ALL PROJECTS:$26,797,717
City of Chula Vista
2019/20 - 2023/24 Capital Improvement Program
2019/202020/212023/242021/222022/23Total
CIP #Project NameCategory
CTY0202CIP Advanced PlanningCIP Advance $60,000$60,000$60,000$60,000$60,000$300,000
Planning
CTY0219Pavement Management SystemPavement $85,000$85,000$85,000$85,000$85,000$425,000
Management
DRN0208Telegraph Canyon Channel Drainage$0$0$0$0$0$0
Improvements
DRN0214Installation of Full Capture Trash Drainage$50,000$75,000$100,000$125,000$150,000$500,000
BMPs
GGV0230Fire Stations City Facilities$3,104,447$1,941,091$2,727,773$0$0$7,773,311
Repairs/Replacements (Measure
P)
GGV0231Civic Center and South Chula City Facilities$250,000$0$0$0$0$250,000
Vista Libraries (Measure P)
GGV0232Police Facility Repairs (Measure City Facilities$100,000$0$0$0$0$100,000
P)
GGV0233Recreation and Senior Center City Facilities($1,500,000$0$0$0$0))($1,500,000
Repairs (Measure P)
GGV0242Fire Station 2 Fueling Tank City Facilities$761,383$0$0$0$0$761,383
Replacement (Measure P)
GGV0245Police Facility Sewer Pump Sewer$150,000$0$0$0$0$150,000
Station Relocation
GGV0246City Hall Emergency Storage Sewer$150,000$0$0$0$0$150,000
Addition for Sewer Pump Station
GGV0247Loma Verde Aquatic and City Facilities$1,500,000$0$0$0$0$1,500,000
Recreation Center Phase I
(Measure P)
PRK0326Park Infrastructure (Measure P)Parks$137,654$0$0$0$0$137,654
PRK0334Salt Creek Community Park Parks$50,000$0$0$0$0$50,000
Pump Station
SAF0169Millenia Fire StationPublic Safety$365,000$0$0$0$0$365,000
STL0404Bikeway Pedestrian Master Plan Local Streets$64,000$0$0$0$0$64,000
2016 Update
STL0410Kellogg Elem. School Pedestrian Local Streets$110,000$0$0$0$0$110,000
Improvements
STL0426Sidewalk Gap Third Ave W/S Local Streets$510,000$0$0$0$0$510,000
Orange Ave to Anita St, E/S
Anita St to Zenith St
STL0436D Street Sidewalk ProjectLocal Streets$0$0$0$0$0$0
STL0437Eastbound Right Turn Lane Local Streets$100,000$400,000$0$0$0$500,000
Installations along East H St
Study
STL0438Sweetwater River Bikeway Local Streets$135,635$0$0$0$0$135,635
Connections/30th Street Bicycle
Facility Improvements
STL0439Sidewalk Replacement Program Local Streets$189,500$0$0$0$0$189,500
FY2019/20
STL0440Pavement Minor Rehabilitation Local Streets$1,410,451$1,250,000$1,250,000$1,250,000$1,250,000$6,410,451
FY2019/20
STM0369Bikeway Facilities Gap ProgramMajor Streets$200,000$0$0$0$0$200,000
STM0385Bridge MaintenanceMajor Streets$65,000$65,000$65,000$65,000$65,000$325,000
STM0386Heritage Road Bridge Major Streets$0$0$0$0$0$0
Replacement Project
STM0397Major Pavement RehabilitationMajor Streets$3,358,586$3,250,000$3,250,000$3,250,000$3,250,000$16,358,586
STM0399I-805 Main Street Interchange Major Streets$75,000$0$0$0$0$75,000
Project Initiation Document (PID)
STM0400RMRA Major Pavement Major Streets$4,427,612$4,250,000$4,250,000$4,250,000$4,250,000$21,427,612
Rehabilitation FY2019/20
City of Chula Vista
2019/20 - 2023/24 Capital Improvement Program
2019/202020/212023/242021/222022/23Total
CIP #Project NameCategory
SWR0293Parkside Drive Lift Station Sewer$375,000$0$0$0$0$375,000
Upgrades
SWR0310Salt Creek Interceptor Condition Sewer$200,000$0$0$0$0$200,000
Assessment (Portions)
SWR0311Poggi Canyon Sewer Sewer$1,076,796$0$0$0$0$1,076,796
Improvements on Olympic
Parkway at Concord Way
SWR0312Sewer Rehab- K Street (300 Sewer$1,725,000$0$0$0$0$1,725,000
Block) and Third Avenue (700
Block)
SWR0313Sewer Access Road Sewer$350,000$350,000$350,000$350,000$350,000$1,750,000
Rehabilitation Program
FY2019/20
SWR0314Sewer Manhole Rehabilitation Sewer$200,000$200,000$200,000$200,000$200,000$1,000,000
FY2019/20
SWR0315Sewer Manhole Inspection Sewer$150,000$150,000$150,000$150,000$150,000$750,000
Program FY2019/20
SWR0316Sewer Pipe Rehabilitation Sewer$300,000$300,000$300,000$300,000$300,000$1,500,000
FY2019/20
TRF0274Traffic Count Station ProgramTraffic$70,000$50,000$50,000$50,000$50,000$270,000
TRF0321Citywide Traffic Data ProgramTraffic$94,000$60,000$60,000$60,000$60,000$334,000
TRF0327Neighborhood Traffic and Traffic$300,000$290,000$290,000$290,000$290,000$1,460,000
Pedestrian Safety Program
TRF0332Signing and Striping ProgramTraffic$75,000$60,000$60,000$60,000$60,000$315,000
TRF0345School Zone Traffic Calming Traffic$270,000$200,000$200,000$200,000$200,000$1,070,000
Program
TRF0350Traffic Signal System Traffic$330,000$330,000$330,000$330,000$330,000$1,650,000
Optimization Program
TRF0354Traffic Congestion Relief Traffic$298,753$80,000$80,000$80,000$80,000$618,753
Program
TRF0366Traffic Signal and Streetlight Traffic$300,000$300,000$300,000$300,000$300,000$1,500,000
Systems Upgrade and
Modification Program
TRF0384Hazel G Cook Elementary Traffic$175,000$0$0$0$0$175,000
School Pedestrian
Improvements
TRF0398Traffic Signal Installation at Main Traffic$50,000$0$0$0$0$50,000
Street and Jacqua Street
TRF0407Traffic Signal Modifications at Traffic$580,000$0$0$0$0$580,000
Five Intersections
TRF0408Traffic Signal Modifications Traffic$0$0$0$0$0$0
(Measure P)
TRF0412Traffic Signal Upgrades at Two Traffic$210,000$0$0$0$0$210,000
Locations
TRF0413Ladder Crosswalks at all Traffic$60,000$50,000$50,000$50,000$50,000$260,000
Controlled Intersection Program
TRF0414Third Ave at Seavale St Ped Traffic$100,000$0$0$0$0$100,000
Street Improvements
TRF0415Telegraph Canyon Road Raised Traffic$175,000$0$0$0$0$175,000
Median Improvements
TRF0416Intersection Safety Traffic$1,000,000$0$0$0$0$1,000,000
Improvements
TRF0417Installation of Enhanced Traffic$90,000$0$0$0$0$90,000
Crosswalks in School Zones
TRF0418Installation of Lead Pedestrian Traffic$2,333,900$0$0$0$0$2,333,900
Interval Traffic Signal Operations
Total:
56$26,797,717$13,796,091$14,207,773$11,505,000$11,530,000$77,836,581
SCHEDULE OF INTERFUND TRANSFERS IN
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