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HomeMy WebLinkAboutAgenda Packet 2019_07_092019-07-09 Agenda PacketPage 2 of 184 2019-07-09 Agenda PacketPage 3 of 184 2019-07-09 Agenda PacketPage 4 of 184 2019-07-09 Agenda PacketPage 5 of 184 2019-07-09 Agenda PacketPage 6 of 184 2019-07-09 Agenda PacketPage 7 of 184 2019-07-09 Agenda PacketPage 8 of 184 2019-07-09 Agenda PacketPage 9 of 184 2019-07-09 Agenda PacketPage 10 of 184 2019-07-09 Agenda PacketPage 11 of 184 File ID: 19-0231 TITLE A.RESOLUTIONOF THE CITY COUNCIL OF THE CITY OF CHULA VISTAAMENDING THE FISCAL YEAR 2019-20CIP BUDGET BYAPPROPRIATING $400,000FROMUNANTICIPATED REVENUE FROM LEXINGTON INSURANCE COMPANYTO THE CAPITAL IMPROVEMENT FUND FORCVEATC PEDESTRIAN BRIDGE REPAIRPROJECT(GGV0241)AND APPROPRIATING$40,000 FROM THE CHULA VISTA ELITE ATHLETE TRAINING CENTER FUND TO GGV0241 (4/5 VOTE REQUIRED) B.RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE EXISTING CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND KIMLEY-HORN AND ASSOCIATES, INC. INCREASING THE ANNUAL NOT-TO- EXCEED AMOUNT TO $750,000 FOR THE TERM ENDING OCTOBER 31, 2019 Council adopt the resolutions. SUMMARY On February 1, 2018,the Chula Vista Elite Athlete Training Center (CVEATC) pedestrian bridge collapsed dueto a vehicle collision.Thereafter, the City filed a claim with Lexington Insurance Company (“Lexington”) and Lexington made an initial partial payment on the claim of $250,000. Per Resolution No. 2018-178,City staff created the CVEATC Pedestrian Bridge Repair project (GGV0241) andthe City Council appropriated the $250,000 received from Lexington to the project. Lexington recently made an additional partial payment on the claim in the amount of $400,000. This item would appropriate this additional partial payment of $400,000, and an additional $40,000 from the Chula Vista Elite Athlete Training Center Fund, for a total $440,000,to Capital Improvement Project (CIP)GGV0241. After issuing a Request for Proposal to the City’s on-call consultants, Kimley-Horn and Associates (KHA) was selected as the design consultant for the CVEATC Pedestrian Bridge Repair project. KHA’s total cost for design services is $341,171.40, which exceeds KHA’s currentannual not-to-exceed amount. City staff recommends increasing KHA’sannual not-to-exceed amount forthe term ending October 31, 2019 by $250,000, for a total annual not-to-exceed limit of $750,000, and increasing the total agreementnot-to- exceed amountto $2,250,000. The proposed Project has been reviewed for compliance with the California Environmental Quality Act (CEQA) and it has beendetermined that the project qualifies for a Categorical Exemption pursuant to State CEQA Guidelines Section 15301 Class 1 (Existing Facilities) and Section 15303 class 3 (New Construction or Page|1 2019-07-09 Agenda PacketPage 12 of 184 Conversion of Small Structures).Notwithstanding the foregoing, it has also been determined that the Pedestrian Bridge Repair in the Chula Vista Elite Athlete Training Center was adequately covered in previously adopted/certified Environmental Impact Report, EIR 89-11 and Supplemental Environmental Impact Report, SEIR 89-11 for the Olympic Training Center. Thus, no further environmental review is necessary. Not Applicable DISCUSSION Per Resolution No. 2018-178, City staff created the CVEATC Pedestrian Bridge Repair project (CIP GGV0241) for the design and repairof the CVEATC bridge and guard house. City staff filed a claim with the Lexington and Lexington made an initial partial payment on the claim in the amount of $250,000. City then appropriated that $250,000 to the project. Lexington recently made an additional partial payment on the claim in the amount of$400,000. Staff recommends appropriating the $400,000 received from Lexington, in addition to $40,000 from the Chula Vista Elite Athlete Fund, for a total of $440,000, to CIP GGV0241in order to complete the design for the project. Lexington has stipulated that City staff costs will not be reimbursable, therefore, only Consultants will be retained for design and repairservices. On February 22, 2019, Engineering staffissued a Request for Proposal to the Civil Engineering on-call consultantsfor the design of the CVEATC Pedestrian Bridge Repair project.KHAwas selected as thedesign consultant for the project, for a total cost of $341,171.40. Per Resolution No. 2017-178, the City entered into agreementswith KHA, NV5, Rick EngineeringCompany,and TYLin International for civil engineering consulting servicesfor various City projects. The annual not-to-exceed amount under the on-call agreementsis $500,000. The City is in the second year of a two-year agreement with KHAwith the current term set to expire on October 31,2019.The agreement has two (2) one-year optional extension periods. The proposal to complete the design services for the CVEATC Pedestrian Bridge Repair would exceed KHA’s current annual not-to-exceed limitof $500,000. Due to the additional civil engineering consulting services required for CIP GGV0241, City staff recommends increasing KHA’s annual not-to-exceed limit by $250,000for the term ending October 31, 2019, for a newannual not-to-exceed limit of $750,000, and a new total agreementnot-to-exceed amount of $2,250,000. Upon completion of the design phase, which includes Plans, Specifications, and Estimate (PS&E), the City will return to the Council to appropriate additional funds requiredto completethe construction phase of the project. City staff will coordinate with Lexington Insurance Company for the remaining undisputed balance to complete the project. Staff has reviewed the property holdings of the Council members and has found that Stephen Padilla CouncilMember District 3has property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. However, the decision solely concerns repairs, replacement or maintenance of existing streets, water, sewer, storm drainage or similar facilities. Consequently, pursuant to California Page|2 2019-07-09 Agenda PacketPage 13 of 184 Code of Regulations Title 2, sections 18702.2(a)(7))or (8), this item does not present a real property- related 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. The City’s Strategic Plan has five major goals: Operational Excellence, Economic Vitality, Healthy Community, Strong and Secure Neighborhoods and a Connected Community. The operations of the Olympic Training Center support the Economic Vitality goal as the City will be able to maximize theuse of this valuable asset as an economic driver. Continued operations will also support the Healthy Community goal because it will provide the highest level of fitness, training and nutrition for elite athletes (both resident and visiting). Fitness, training and nutrition education and activities are also expected to be continued and expanded for local residents and programs. Approval of Resolution Awill appropriate $440,000to CIP GGV0241 to cover design costsassociated with thebridgeand guard houserepairsand cover staff costs associated with oversight of the project. Therefore, this is no direct impact to the General Fund. For Resolution B, all fees for Consultant’s services will be paid from funds already allocated for CIP GGV0241. The two-year agreementis eligible for two one-year extensions upon mutual agreement. The preliminary bridge repair estimate ranges from $1.1to $2.3 million. Staff will return to Council to appropriate funds for construction after concurrence of the project scope from the Insurance provider. Upon completion of the project, the improvements will require routine maintenance. ATTACHMENTS 1.KHA Original Agreement 2.KHAFirst Amendment to Original Agreement Page|3 2019-07-09 Agenda PacketPage 14 of 184 RESOLUTION NO. 2019________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDINGTHEFISCALYEAR2019-20CIPBUDGETBY APPROPRIATING$400,000FROMUNANTICIPATEDREVENUE RECEIVED FROM LEXINGTON INSURANCE COMPANYTO THE CAPITAL IMPROVEMENT FUND FOR THE CVEATC PEDESTRIAN BRIDGE REPAIR PROJECT (GGV0241) AND APPROPRIATING $40,000 FROM THE CHULA VISTA ELITE ATHLETE TRAINING CENTER FUND TO GGV0241 (4/5 VOTE REQUIRED) WHEREAS,per City of Chula Vista City Council Resolution No. 2018-178, City staff createdthe CVEATC Pedestrian Bridge Repair Project (CIP GGV0241) for the design and repair of the CVEATC bridge and guard house; and WHEREAS,pursuant to itsclaim with Lexington Insurance Company (Lexington), City received an initial partial payment of$250,000; and WHEREAS, City appropriated the initial partial payment of $250,000 to CIP GGV0241; and WHEREAS, on June 10, 2019,the City received an additionalpartial payment on its claim in the amount of $400,000;and WHEREAS, Staff recommends appropriating the additional partial payment of $400,000 from Lexington, and $40,000 from the Chula Vista Elite Athlete Training Center Fund, to CIP GGV0241 in order tocommence andcomplete the project design. NOW THEREFORE,BE IT RESOLVEDbythe City Council of the City of Chula Vistathat it authorizes appropriating$400,000from unanticipated revenue received from Lexington Insurance Companyto CIP GGV0241and appropriating $40,000 from Chula Vista Elite Athlete Training Center Fund to GGV0241. Presented by: ___________________________________________________ William S. ValleGlen R. Googins Director of Engineering & CapitalCity Attorney Projects/ City Engineer 2019-07-09 Agenda PacketPage 15 of 184 RESOLUTION NO. 2019________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE EXISTING CONSULTING SERVICES AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND KIMLEY-HORN AND ASSOCIATES, INC. INCREASING THE ANNUAL NOT-TO-EXCEED AMOUNT TO $750,000 FOR THE TERM ENDING OCTOBER 31, 2019 WHEREAS, City of Chula Vista (City) and Kimley-Horn and Associates (KHA) are parties to that certain City of Chula VistaConsultant Services Agreementwith Kimley-Horn and Associates, Inc.to Provide Civil Engineering Consulting Services for Various Capital Improvement Program Projects,dated November 1, 2017 (“Agreement”); and WHEREAS,the Agreement is for a term of two years with options to extend the agreement for two (2) additional one-year periods; and WHEREAS, the annual not-to-exceed limit for the term ending October 31, 2019 is $500,000; and WHEREAS,on February 22, 2019, Department of Engineering and Capital Projects’ staff issued a Request for Proposal to the City’s Civil Engineering on-call consultantsfor the design of the CVEATC Pedestrian Bridge Repair project(GGV0241); and WHEREAS, KHAwas selected as thedesignconsultant for the projectand the parties negotiated a proposed price of$341,171.40to complete design services for the project; and WHEREAS, the proposed priceto complete the design services would cause KHA to exceed the annual not-to-exceed limitof $500,000; and WHEREAS,due to the unforeseen civil engineering consulting services required for CIP GGV0241, City staff recommends increasing KHA’s annual not-to-exceed amount by $250,000, for a new annual not-to-exceed amount of $750,000for the term ending October 31, 2019,and increasing thetotal agreementnot-to-exceed amount to $2,250,000. NOW THEREFORE,BE IT RESOLVEDbythe City Council of the City of Chula Vistathat it approves the First Amendment to the Consultant Services Agreement between the City of Chula Vista and Kimley-Horn and Associates, in the form presented, with such modifications as approved or required by the City Attorney, a copy of which shall be kept on file in the office of the City Clerk, and authorizes and directs the mayor to execute the same, and directs copy to be kept on file in the Office of the City Clerk. Presented by: 2019-07-09 Agenda PacketPage 16 of 184 ___________________________________________________ William S. ValleGlen R. Googins Director of Engineering & CapitalCity Attorney Projects/ City Engineer 2019-07-09 Agenda PacketPage 17 of 184 2019-07-09 Agenda PacketPage 18 of 184 2019-07-09 Agenda PacketPage 19 of 184 2019-07-09 Agenda PacketPage 20 of 184 2019-07-09 Agenda PacketPage 21 of 184 2019-07-09 Agenda PacketPage 22 of 184 2019-07-09 Agenda PacketPage 23 of 184 2019-07-09 Agenda PacketPage 24 of 184 2019-07-09 Agenda PacketPage 25 of 184 2019-07-09 Agenda PacketPage 26 of 184 2019-07-09 Agenda PacketPage 27 of 184 2019-07-09 Agenda PacketPage 28 of 184 2019-07-09 Agenda PacketPage 29 of 184 2019-07-09 Agenda PacketPage 30 of 184 2019-07-09 Agenda PacketPage 31 of 184 2019-07-09 Agenda PacketPage 32 of 184 2019-07-09 Agenda PacketPage 33 of 184 2019-07-09 Agenda PacketPage 34 of 184 2019-07-09 Agenda PacketPage 35 of 184 2019-07-09 Agenda PacketPage 36 of 184 2019-07-09 Agenda PacketPage 37 of 184 2019-07-09 Agenda PacketPage 38 of 184 2019-07-09 Agenda PacketPage 39 of 184 2019-07-09 Agenda PacketPage 40 of 184 FIRSTAMENDMENT to Agreement between the City of Chula Vista and Kimley-Horn and Associates, Inc to provide Civil Engineering Consulting Services for Various Capital Improvement Program Projects This FIRSTAMENDMENT (“Amendment”)is entered intoeffective as of July 9, 2019 (“Effective Date”)by and betweenthe City of Chula Vista (“City”) and Kimley-Horn and Associates, Inc(“Consultant”)with reference to the following facts: RECITALS WHEREAS, City and Consultant previously entered into theCity of Chula Vista Consultant Services Agreement with Kimley-Horn and Associates, Inc. to Provide Civil Engineering Consulting Services for Various Capital Improvement Program Projects,, Agreement Control Number 17116 and Resolution Number 2017-178,on November 1, 2017(“Original Agreement”); and WHEREAS, the City has identified additional services that it desires to have Consultant perform pursuant to the terms of the Original Agreement; and WHEREAS, the Parties anticipate that the performance of the additional services will require payment to Consultant in excess of the annual not-to-exceed amount of $500,000 as set fort in Section 4.B of the Original Agreement; and WHEREAS, Section 8.1 of the Original Agreement provides that the parties are permitted to modify the Agreement by means of a written amendment executed by both Parties; and WHEREAS, the Parties wish to increase the Original Agreement’sannual not-to-exceed amount as shown in Exhibit A, Section 4 of the Original Agreement, from $500,000 to $750,000 and total contract maximum not-to-exceed amount from $2,000,000 to $2,250,000. NOW, THEREFORE, in consideration of the above recitals and the mutual obligations of the parties set forth herein, City and Consultant agree as follows: 1.Exhibit A,Scope of Work and Payment Terms, Section 4.B of the Original Agreement is amended as follows: “Limitation without Further Authorization on Time and Materials Arrangement. Each Project assigned will set a not-to-exceed fee for all time, material, and costs permitted to be incurred for that Project. In addition, the combined total for all time, materials, and costs on all assigned Projects from the Effective Date through October 31, 2018 shall not exceed $500,000.00 and the combined total for all time, materials,and costs on all assigned Projects from November 1, 2018 to October 31, City of Chula Vista Amendment to Agreement No.: 17116 Consultant Name:Kimley-Horn and Associates, Inc Rev. 8/23/16 2019-07-09 Agenda PacketPage 41 of 184 2019 shall not exceed $500,000$750,000. If the City exercises its option to extend the Agreement, the amount to be paid to the Consultant for all time, materials, and costs provided during the term of that extension shall not exceed $500,000.00. If the City exercises all additional options to extend the Agreement, the total amount to be paid to the Consultant for all time, materials, and costs during the Term and optional extension periods shall not exceed $2,000,000.00$2,250,000.00.” 2.Except as expressly provided herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. 2.Each party represents that it has full right, power andauthority to execute this FIRST Amendment and to perform its obligations hereunder, without the need for any further action under its governing instruments, and the parties executing this Amendment on the behalf of such party are duly authorized agents with authority to do so. \[End of page. Next page is signature page.\] City of Chula Vista Amendment to Agreement No.: 17116 Consultant Name:Kimley-Horn and Associates, Inc Rev. 8/23/16 2019-07-09 Agenda PacketPage 42 of 184 SIGNATURE PAGE TO FIRST AMENDMENT TO THE CITY OF CHULA VISTA CONSULTANT SERVICES AGREEMENT WITH KIMLEY-HORN AND ASSOCIATES, INC. TO PROVIDE CIVIL ENGINEERING CONSULTING SERVICES FOR VARIOUS CAPITAL IMPROVEMENT PROGRAM PROJECTS KIMLEY-HORN AND ASSOCIATES, INCCITY OF CHULA VISTA BY:________________________________BY: ________________________________ DENNIS LANDALLMARY CASILLAS SALAS SENIOR VICE PRESIDENTMAYOR ATTEST BY: _________________________________ KERRY K. BIGELOW, MMC CITY CLERK APPROVED AS TO FORM BY: _________________________________ GLEN R. GOOGINS CITY ATTORNEY City of Chula Vista Amendment to Agreement No.: 17116 Consultant Name:Kimley-Horn and Associates, Inc Rev. 8/23/16 2019-07-09 Agenda PacketPage 43 of 184 File ID: 19-0321 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE AGREEMENT WITH MCFARLANE PROMOTIONS, INC. TO PROVIDE EVENT PLANNING SERVICES FOR THE 2019 AND 2020 SOUTHBAY EARTH DAY, HARBORFEST, AND THE STARLIGHT PARADE & CHILDREN'S FAIRE Council adopt the resolution. SUMMARY The City of Chula Vista is actively engaged in establishing signature community events that attract residents and visitors. South Bay Earth Day, HarborFest and the Starlight Parade are three of the most labor-intensive events that the City coordinates. These events require work to be performed that includes, but is not limited to, logistical coordination, planning with vendors, musical groups, participants, partner agencies and others, securing subcontractors, and paying invoices. To successfully execute these events, the agreement requires McFarlane Promotions, Inc. to pay subcontractorsand vendorsprior-to and at the event. TheCity advances funds to McFarlane Promotions, Inc. for pre-event and event-day payment of subcontractors and vendors to secure services and supplies approved by the City. The attached resolution supports approval to advance funds to McFarlane Promotions, Inc. of up to $190,000to cover event expenses. 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 15304 Class 4 (Minor Alterations to Land); Section 15323 Class 23 (Normal Operations of Facilities for Public Gatherings); and Section 15061(b)(3)because it is a temporary event that would not involve the removal of mature, scenic trees or have any permanent effects on the environment. Thus, no further environmental review is required. Not applicable. v.001 Page|1 2019-07-09 Agenda PacketPage 44 of 184 DISCUSSION The City of Chula Vista collaborates with local agencies, volunteers, businesses and stakeholders to host South Bay Earth Day, HarborFest and the Starlight Parade & Children’s Faire. These events attract thousands of visitors to Chula Vista and showcase our sustainability efforts, cultural traditions, arts, civic pride and more. To successfully execute these events, the agreement requires McFarlane Promotions, Inc. to pay subcontractors and vendors prior-to and at the event. The City advances funds to McFarlane Promotions, Inc. for pre-event and event-day payment of subcontractors and vendors. These subcontractors and vendors provide event-related services and supplies that are pre-approved by the City. The attached resolution supports approval toadvance funds to McFarlane Promotions, Inc. of up to $190,000 tocover event expenses. Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real propertyholdings of the City of Chula Vista Councilmembers 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 andhas not been informed by any City of Chula Vista Councilmember, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. There is no anticipated current year fiscal impact relatedto this item. Event costs are anticipated to be funded by sponsorship, City contribution,and grant funds. The FY 2020 Budget has $62,000 appropriated for the City’s contribution for Special Eventsin Non-Departmental.There may be an impact to the General Fund if sufficient funds are not generated through event sponsorships. There are no anticipated ongoing financial impacts related to this item as event costs are considered on an annual basis. ATTACHMENTS 1.McFarlane Agreement 2.McFarlane First Amendment Page|2 2019-07-09 Agenda PacketPage 45 of 184 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE FIRST AMENDMENT TO THE AGREEMENT WITH MCFARLANE PROMOTIONS, INC. TO PROVIDE EVENT PLANNING SERVICES FOR THE 2019 AND 2020 SOUTHBAY EARTH DAY, HARBORFEST,AND THE STARLIGHT PARADE & CHILDREN'S FAIRE WHEREAS, the City of Chula Vista is actively engaged in establishing signature community events that attract residents and visitors; and WHEREAS, South Bay Earth Day is the South Bay’s largest Earth Day celebration promoting environmental stewardship and sustainability with interactive demonstrations, exhibits, educational sessions and more; and WHEREAS, HarborFest is a day-long festival with music performances; vendors; youth zone; community performances; interactive, educational children’s activities; harbor activities; a green zone; and more to attract residents and visitors to the Chula Vista Bayfront; and WHEREAS, the Starlight Parade & Children’s Faire is a day of free children’s activities including pictures with Santa, a snow hill and children’s games, which is followed by a nighttime parade with more than 100 parade entrants, including local schools and regional organizations, and attracts residents and visitors to the Chula Vista Third Avenue Downtown; and WHEREAS, South Bay Earth Day, HarborFest, and the Starlight Parade involve work to be performed that includes, but is not limited to, coordination, planning with vendors, musical groups, participants, partner agencies and others, securing subcontractors, paying invoices; and WHEREAS, the success of South Bay Earth Day, HarborFest, and the Starlight Parade & Children’s Faire depends upon expert coordination and planning; and WHEREAS, the City solicited proposals for an event planning consultant tocoordinate South Bay Earth Day, HarborFest and the Starlight Parade & Children’s Faire, and the committee selected McFarlane Promotions, Inc. as the most qualified vendor; and WHEREAS, to successfully execute these events, the City will provide McFarlane Promotions, Inc. with funds to paysubcontractors and vendors prior-to the event as well as at the event; and WHEREAS, the City will advance funds to McFarlane Promotions, Inc. for pre-event and event-day payment of subcontractors and vendors that provide event-related services and supplies that are pre-approved by the City. C:\\Users\\legistar\\AppData\\Local\\Temp\\BCL Technologies\\easyPDF 8\\@BCL@B40C8614\\@BCL@B40C8614.doc 2019-07-09 Agenda PacketPage 46 of 184 Resolution No. Page 2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves the First Amendment to the Agreement with McFarlane Promotions, Inc. to provide eventplanning services for the 2019 and 2020 Southbay Earth Day, Harborfest, and the Starlight Parade & Children’s Faire 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 Mayor to execute same.” Presented by Approved as to form by Gary HalbertGlen R. Googins City ManagerCity Attorney 2019-07-09 Agenda PacketPage 47 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 CITY OF CHULA VISTA CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT WITH MCFARLANE PROMOTIONS, INC. TO PROVIDE EVENT PLANNING SERVICES FOR 2019 AND 2020 SOUTHBAY EARTH DAY, HARBORFEST AND THE STARLIGHT PARADE & CH This Agreement is entered into effective as of February 6, 2019 McFarlane Promotions, Inc., a California Contractor/Service Provider reference to the following facts: R ECITALS WHEREAS, the City of Chula Vista is actively engaged in establishing signature community events that attract residents and visitors; and WHEREAS, South environmental stewardship and sustainability with interactive demonstrations, exhibits, educational sessions and more; and WHEREAS, HarborFest is a day-long festival with music performances; vendors; youth zone; community a green zone; and more to attract residents and visitors to the Chula Vista Bayfront; and WHEREAS, the Starlight Parade is a which is followed by a nighttime parade with more than 100 parade entrants, including local schools and regional organizations, and attracts residents and visitors to the Chula Vista Third Avenue Downtown; and WHEREAS, South Bay Earth Day, HarborFest, and the Starlight Parade involve work to be performed that includes, but is not limited to, coordination, planning with vendors, musical groups, participants, partner agencies and others, securing subcontractors, paying invoices; and WHEREAS, the success of South Bay Earth Day, HarborFest, and the Starlight Parade depends upon expert coordination and planning; and WHEREAS, the City requires third-party accounting assistance to collect and manage funds from ticket sales, booth registration fees, and other fees; and in planning large-scale public events makes the firm uniquely qualified; and WHEREAS, the City solicited proposals for an event planning consultant to coordinate South Bay Earth Day, HarborFest and the Starlight Parade , and the committee selected McFarlane Promotions, Inc. as the most qualified vendor; and City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 48 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 WHEREAS, Contractor/Service Provider warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Contractor/Service Provider to City in accordance with the time frames and the terms and conditions of this Agreement. \[End of Recitals. Next Page Starts Obligatory Provisions.\] City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 49 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 O BLIGATORY P ROVISIONS NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and Contractor/Service Provider hereby agree as follows: 1.SERVICES 1.1 Required Services. Contractor/Service Provider agrees to perform the services, and deliver to City the A, incorporated into the Agreement by this reference, within the time frames set forth therein, time being of the essence for this Agreement. The services and/or 1.2 Reductions in Scope of Work. City may independently, or upon request from Contractor/Service Provider, from time to time, reduce the Required Services to be performed by the Contractor/Service Provider under this Agreement. Upon doing so, City and Contractor/Service Provider agree to meet and confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction. 1.3 Additional Services. ordinances governing procurement and purchasing authority, City may request Contractor/Service Provider Contractor/Service Provider agree to meet and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the Additional Services shall be charged and paid consistent with the rates and terms already provided therein. O Agreement. 1.4 Standard of Care. Contractor/Service Provider expressly warrants and agrees that any and all Required Services hereunder shall be performed in accordance with the highest standard of care exercised by members of the profession currently practicing under similar conditions and in similar locations. 1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Contractor/Service Provider of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Contractor/Service Provider or its subcontractors. 1.6 Security for Performance. In the event that Exhibit A Section 4 indicates the need for Contractor/Service Provider to provide additional security for performance of its duties under this Agreement, Contractor/Service Provider shall provide such additional security prior to commencement of its Required Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by the City Attorney. 1.7 Compliance with Laws. In its performance of the Required Services, Contractor/Service Provider shall comply with any and all applicable federal, state and local laws, including the Chula Vista Municipal Code. 1.8 Business License. Prior to commencement of work, Contractor/Service Provider shall obtain a business license from City. City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 50 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 1.9 Subcontractors. Prior to commencement of any work, Contractor/Service Provider shall submit for Contractor/Service Provider in the performance of the Required Services. Contractor/Service Provider agrees to take appropriate measures necessary to ensure that all subcontractors and personnel utilized by the Contractor/Service Provider to complete its obligations under this Agreement comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In addition, if any subcontractor is expected to fulfill any responsibilities of the Contractor/Service Provider under this Agreement, Contractor/Service Provider shall ensure that each and every subcontractor carries out the Contractor/Service Provider forth in this Agreement. 1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date or Contractor/Service Provider the Parties have complied with all their obligations hereunder; provided, however, provisions which expressly survive termination shall remain in effect. 2.COMPENSATION 2.1 General. For satisfactory performance of the Required Services, City agrees to compensate Contractor/Service Provider in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment are set forth in this Section 2. 2.2 Detailed Invoicing. Contractor/Service Provider agrees to provide City with a detailed invoice for services performed each month, within thirty (30) days of the end of the month in which the services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date of the Agreement. All charges must be presented in a line item format with each task separately explained in reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced to date, and the remaining amount available under any approved budget. Contractor/Service Provider must obtain prior written authorization from City for any fees or expenses that exceed the estimated budget. 2.3 Payment to Contractor/Service Provider. Upon receipt of a properly prepared invoice and confirmation that the Required Services detailed in the invoice have been satisfactorily performed, City shall pay Contractor/Service Provider for the invoice amount within thirty (30) days. Payment shall be made in accordance with the terms and conditions set forth in Exhibit invoices not timely submitted may be subject to a penalty of up to five percent (5%) of the amount invoiced. 2.4 Retention Policy. City shall retain ten percent (10%) of the amount due for Required Services detailed holdback amount will be issued to Contractor/Service Provider. 2.5 Reimbursement of Costs. City may reimburse Contractor/Service Provider-of-pocket costs incurred by Contractor/Service Provider in the performance of the Required Services if negotiated in advance and included in Exhibit A. Unless specifically provided in Exhibit A, Contractor/Service Provider shall be responsible for any and all out-of-pocket costs incurred by Contractor/Service Provider in the performance of the Required Services. 2.6 Exclusions. City shall not be responsible for payment to Contractor/Service Provider for any fees or costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 51 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 shall also not be responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of Contractor/Service Provider, its agents, employees, or subcontractors. 2.7 Payment Not Final Approval. Contractor/Service Provider understands and agrees that payment to the Contractor/Service Provider or reimbursement for any Contractor/Service Provider costs related to the performance of Required Services does not constitute a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for payment under this Agreement, nor does it constitute a waiver of any violation by Contractor/Service Provider of the terms of this Agreement. If City determines that Contractor/Service Provider is not entitled to receive any amount of compensation already paid, City will notify Contractor/Service Provider in writing and Contractor/Service Provider shall promptly return such amount. 3.INSURANCE 3.1 Required Insurance. Contractor/Service Provider must procure and maintain, during the period of performance of Required Services under this Agreement, and for twelve months after completion of Required Services, the policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this Section. 3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions relating to the Required Insurance must be disclosed to and approved by City in advance of the commencement of work. 3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers (LESLI Insurance, insurance issued by the State Compensation Fund is also acceptable. 3.4 Subcontractors. Contractor/Service Provider must include all sub-Contractor/Service Providers/sub- contractors as insureds under its policies and/or furnish separate certificates and endorsements demonstrating separate coverage for those not under its policies. Any separate coverage for sub-Contractor/Service Providers must also comply with the terms of this Agreement. 3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified a additional insured coverage must be provided in the form of an endorsement to the Contractor/Service Providerts equivalent; such endorsement must not exclude Products/Completed Operations coverage. 3.6 Contractor/Service Provider must be primary insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance provided by Contractor/Service Provider and in no way relieves Contractor/Service Provider from its responsibility to provide insurance. City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 52 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required return receipt requested. Prior to the effective date of any such cancellation Contractor/Service Provider must procure and put into effect equivalent coverage(s). 3.8 Waiver of Subrogation. Contractor/Service Provider in favor of the City for each Required Insurance policy under this Agreement. In addition, Contractor/Service Provider waives any right it may have or may obtain to subrogation for a claim against City. 3.9 Verification of Coverage. Prior to commencement of any work, Contractor/Service Provider shall furnish City with original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that Contractor/Service Provider has obtained the Required Insurance in compliance with the terms of this Agreement. The wor must be deleted from all certificates. The required certificates and endorsements should otherwise be on industry standard forms. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. 3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are required and are provided on a claims-made form, the following requirements also apply: a. must be shown, and must be before the date of this Agreement or the beginning of the work required by this Agreement. b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the work required by this Agreement. c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form Contractor/Service Provider must by this Agreement. d. A copy of the claims reporting requirements must be submitted to the City for review. 3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed to limit the Contractor/Service Provider 3.12 Additional Coverage. To the extent that insurance coverage provided by Contractor/Service Provider maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher limits maintained. City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 53 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 4.INDEMNIFICATION 4.1. General. To the maximum extent allowed by law, Contractor/Service Provider shall protect, defend, indemnify and hold harmless City, its elected and appointed officers, agents, employees and volunteers costs, equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Contractor/Service Provider, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Required Services, the results of such performance, or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Contractor/Service Provider, its employees, agents or officers, or any third party. 4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the forgoing, if the services provided under this Agreement are design professional services, as defined by California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity obligation under Section 1, above, shall be limited to the extent required by California Civil Code section 2782.8. 4.3 Costs of Defense and Award. Included in Contractor/Service Provider 4 is Contractor/Service Provider Contractor/Service Provider and risk, any and all suits, actions or other legal proceedings that may be brought or instituted against one or more of the Indemnified Parties. Subject to the limitations in this Section 4, Contractor/Service Provider shall pay and satisfy any judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred by any of them. 4.4. Contractor/Service Providerns Not Limited or Modified. Contractor/Service Provider obligations under this Section 4 shall not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent declaration by the Contractor/Service Provider. Furthermore, Contractor/Service Provider Contractor/Service Provider 4.5. Enforcement Costs. Contractor/Service Provider agrees to pay any and all costs City incurs in enforcing Contractor/Service Provider 4.6 Survival. Contractor/Service Provider termination of this Agreement. 5.FINANCIAL INTERESTS OF CONTRACTOR/SERVICE PROVIDER. 5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code require certain government officials and Contractor/Service Providers performing work for government agencies to publicly disclose certain of their personal assets and income using a Statement of Economic Interests form (Form 700). In order to assure compliance with these requirements, Contractor/Service Provider shall comply with the disclosure requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference. City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 54 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 5.2 Disclosures; Prohibited Interests. Independent of whether Contractor/Service Provider is required to file a Form 700, Contractor/Service Provider warrants and represents that it has disclosed to City any economic interests held by Contractor/Service Provider, or its employees or subcontractors who will be performing the Required Services, in any real property or project which is the subject of this Agreement. Contractor/Service Provider warrants and represents that it has not employed or retained any company or person, other than a bona fide employee or approved subcontractor working solely for Contractor/Service Provider, to solicit or secure this Agreement. Further, Contractor/Service Provider warrants and represents that it has not paid or agreed to pay any company or person, other than a bona fide employee or approved subcontractor working solely for Contractor/Service Provider, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Contractor/Service Provider further warrants and represents that no officer or employee of City, has any interest, whether contractual, non-contractual, financial or otherwise, in this transaction, the proceeds hereof, or in the business of Contractor/Service Provider or Contractor/Service Provider Contractor/Service Provider further agrees to notify City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties, City shall have the right to rescind this Agreement without liability. 6.REMEDIES 6.1 Termination for Cause. If for any reason whatsoever Contractor/Service Provider shall fail to perform the Required Services under this Agreement, in a proper or timely manner, or if Contractor/Service Provider shall violate any of the other addition to any and all other rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to terminate this Agreement by giving five (5) days written notice to Contractor/Service Provider. Such notice shall identify the Default and the Agreement termination date. If Contractor/Service Provider date, and City agrees that the specified Default is capable of being cured, City may grant Contractor/Service Provider up to ten (10) additional days after the designated termination date to effectuate such cure. In the event of a termination under this Section 6.1, Contractor/Service Provider shall immediately provide City any Contractor/Service Provider as part of the as provided in Section 7 hereof. Contractor/Service Provider may be entitled to compensation for work satisfactorily performed prior to Contractor/Service Provider compensation exceed the amount that would have been payable under this Agreement for such work, and any such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of the Default. 6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement, or any portion of the Required Services, at any time and for any reason, with or without cause, by giving specific written notice to Contractor/Service Provider of such termination or suspension at least fifteen (15) days prior to the effective date thereof. Upon receipt of such notice, Contractor/Service Provider shall 7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in Section 7 hereof. Contractor/Service Provider shall be entitled to receive just and equitable compensation for this Work Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily performed as of the date of the termination/suspension notice plus any additional remaining Required Services City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 55 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this Section, Contractor/Service Provider hereby expressly waives any and all claims for damages or compensation as a result of such termination except as expressly provided in this Section 6. 6.4 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the provisions of which, including such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. Upon request by City, Contractor/Service Provider shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 6.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in San Diego County, State of California. 6.6 Service of Process. Contractor/Service Provider agrees that it is subject to personal jurisdiction in California. If Contractor/Service Provider is a foreign corporation, limited liability company, or partnership that is not registered with the California Secretary of State, Contractor/Service Provider irrevocably consents to service of process on Contractor/Service Provider by first class mail directed to the individual and address listed unde effective five days after mailing. 7.OWNERSHIP AND USE OF WORK PRODUCT All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced in whole or in part under this Agreement in connection with the performance such Work Product shall be subject to private use, copyrights or patent rights by Contractor/Service Provider in the United States or in any other country without the express, prior written consent of City. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such Work Product, without requiring any permission of Contractor/Service Provider, except as may be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws. With respect to computer files containing data generated as Work Product, Contractor/Service Provider shall make available to City, upon reasonable written request by City, the necessary functional computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 8.GENERAL PROVISIONS 8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties. 8.2 Assignment. City would not have entered into this Agreement but for Contractor/Service Provider unique qualifications and traits. Contractor/Service Provider shall not assign any of its rights or responsibilities under this Agreement, nor any part hereof, withou may grant, condition or deny in its sole discretion. 8.3 Authority. The person(s) executing this Agreement for Contractor/Service Provider warrants and represents that they have the authority to execute same on behalf of Contractor/Service Provider and to bind City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 56 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 Contractor/Service Provider to its obligations hereunder without any further action or direction from Contractor/Service Provider or any board, principle or officer thereof. 8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed such a counterpart. 8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein by reference. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 8.6 Record Retention. During the course of the Agreement and for three (3) years following completion of the Required Services, Contractor/Service Provider agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the performance of the Agreement, including accounting for costs and expenses charged to City, including such records in the possession of sub-contractors/sub-Contractor/Service Providers. 8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties. 8.8 Independent Contractor. Contractor/Service Provider is and shall at all times remain as to City a wholly independent contractor. Neither City nor any of its officers, employees, agents or volunteers shall have control over the conduct of Contractor/Service Provider or any of Contractor/Service Provider Contractor/Service Provider Agreement. No Contractor/Service Provider Related Individuals shall be deemed employees of City, and none of them shall be entitled to any benefits to which City employees are entitled, including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Furthermore, City will not withhold state or federal income tax, social security tax or any other payroll tax with respect to any Contractor/Service Provider Related Individuals; instead, Contractor/Service Provider shall be solely responsible for the payment of same and shall hold the City harmless with respect to same. Contractor/Service Provider shall not at any time or in any manner represent that it or any of its Contractor/Service Provider Related Individuals are employees or agents of City. Contractor/Service Provider shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner. 8.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in writing. (End of page. Next page is signature page.) City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 57 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 SIGNATURE PAGE CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and Contractor/Service Provider agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and consent to bound by same, and that they are freely entering into this Agreement as of the Effective Date. MCFARLANE PROMOTIONS, INC. CITY OF CHULA VISTA BY:________________________________ BY: ________________________________ LAUREL MCFARLANE MARY CASILLAS SALAS CEO MAYOR ATTEST BY: ________________________________ Kerry K. Bigelow, MMC City Clerk APPROVED AS TO FORM BY: ________________________________ Glen R. Googins City Attorney City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 58 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 EXHIBIT A SCOPE OF WORK AND PAYMENT TERMS 1.Contact People for Contract Administration and Legal Notice A. City Contract Administration: Olga Berdial 276 Fourth Avenue, Chula Vista, CA 91910 619-409-5445 oberdial@chulavistaca.gov For Legal Notice Copy to: City of Chula Vista City Attorney 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5037 CityAttorney@chulavistaca.gov B. Contractor/Service Provider Contract Administration: McFarlane Promotions, Inc. 656 Fifth Avenue, San Diego, CA 92101 619-233-5008 laurel@mcfarlanepromotions.com For Legal Notice Copy to: McFarlane Promotions 656 Fifth Avenue, San Diego, CA 92101 619-233-5008 laurel@mcfarlanepromotions.com 2.Required Services A. General Description: The Consultant will develop and implement a strategic plan to coordinate all activities and logistics related to South Bay Earth Day, HarborFest, and the Starlight Parade which includes but is not limited to organizing exhibitors, parade entrants, performance stages, food vendors, activities, creating a participation database, hiring subcontractors, securing necessary permits, coordinating publicity, providing invoicing and/or payment and accounting services, and paying all designated invoices.) B. Detailed Description: Scheduling & Optimization Work with Client to establish an event budget for each event Create timeline for the events Coordinate with Client to decide on event formats Attend pre-event meetings in-person or via teleconference when in-person is not feasible Produce a production schedule of items for each event, with all appropriate parties, outlining all steps in pre- production, load-in of the event, the event and load-out of the event City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 59 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 Oversee the events, before, during and after the events for each event Meetings and Permitting Attend selected community meetings Attend all necessary internal, merchant and City meetings Secure all special event permits from the City of Chula Vista Interact with Chula Vista City officials and other agencies as required to include, but not limited to: oTraffic Control oPolice oFire oRisk Management oSpecial Events Coordinator oHealth Department County of San Diego oElectrical oEnvironmental Services oEMS oPublic Works oRecreation oABC oOthers as needed Secure all necessary insurance from all production vendors/subcontractors naming the City of Chula Vista as additionally insured for each event Sponsorship Information Secure sponsor contracts once sponsors are confirmed Obtain logos, company information, advertisements, special deals and website link from sponsors to use on collateral materials and website Maintain open relationship with sponsors to ensure agreement and needs are met Send thank you cards to sponsors after event and follow up to make sure they were pleased with participation Accounting Services Secure payment from vendors via credit card, check or money order Provide credit card processing services Invoice vendors and/or sponsors as requested Remit all funds to City Media/Press Plan Television Pitch live spots for pre-event & day of coverage to the following TV Stations and act as media liaison, generate and distribute press release, PSAs media alerts, etc.: KUSI TV KFMB TV KNSD TV KGTV TV SD6 TV FOX 5 TV MYTV13 TV City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 60 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 Radio Contact local radio stations to receive proposals for event promotion Review Radio Contracts Distribute event graphics, public service announcements, etc. to radio stations for promotions Secure and distribute promotional materials (i.e. gift certificates, product, discounts, etc.) for Radio promotions Make sure all event information is promoted on radio websites Obtain sound clips from promotional spots for records Graphic Design Create list of graphic design needs and send out for bids Obtain bids from graphic designers and select graphics designer Work with graphic designer to create and secure all collateral materials including but not limited to: o Advertising o Posters o Flyers o Programs o Merchandise Additional PR/Promotion Plan Initial Calendar Item release to all media for each event Initial Press Release for each event Media Alert for each event Work with graphic designer on all collateral material Create and secure all collateral materials including but not limited to; advertising, posters, & fliers Placement of promotional material (flyer, poster, etc.) in area restaurants, retail, bars, etc. Web Promotions Upload event information to over 100 event web listings Twitter Work with existing Twitter account and build a strong follower list Utilize Twitter to send updates to the public, publications and other followers with event updates Facebook Work with existing Facebook account and build a strong friend list Utilize Facebook to send status updates to friends with event updates Post Event Press Plan Organize, write and distribute media recap to include all articles, calendar notices, press, and television coverage Consultant shall contract directly with all event vendors, sponsors, advertisers, and all others necessary to accomplish the above tasks. South Bay Earth Day - Scope of Work The selected Event Planner/Production Company will: Develop a strategic plan for successfully executing South Bay Earth Day. Coordinate with Office of Sustainability and other City staff to organize sponsorships, event logistics, insurance requirements, etc. City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 61 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 Develop a schedule and timeline for all activities required to execute a successful event. Recommend budget needed to execute South Bay Earth Day and develop timeline and sponsorship package ideas and strategies to meet budget goals. Develop advertising recommendations, event program, conduct media buy, secure radio sponsorships and value-added elements. Coordinate publicity including pre-event news coverage and event news coverage. Coordinate graphic design and/or printing of flyers, ads, signage, and other collateral. Create social media toolkit for City social media sites including Facebook, Twitter and Instagram. Assist with fundraising activities and securing sponsorships to support event activities. Conduct outreach to secure event participants including non-profit organizations, food, craft, and other recommended festival vendors. Coordinate all programming including but not limited to performers, musicians, and other participants. Coordinate any food trucks, vendors or other food options at the event, which may include: participating restaurants, and wine, beer, and spirits vendors. Coordinate with the City to secure all necessary permits including but not limited to: Alcohol and Beverage Control; County of San Diego; City of Chula Vista Risk Management, Police Department, Fire Department, Building, Environmental Services, City Manager, and other departments; Emergency Medical Services; and other agencies depending on event requirements. Secure items needed for event including staging, banners, signage, sound, lighting, fencing, tables, chairs, umbrellas, etc. Secure items to support expected crowd in attendance including portable toilets, hand washing stations, etc. Secure items for any displays or booths including tenting, tables, chairs, generators, etc. Coordinate with Chula Vista Police and Fire Departments and Special Events Coordinator to develop a traffic plan and secure appropriate number of officers or traffic control personnel to maintain public safety. Provide strategic direction and conduct activities required for a successful event. Coordinate with Office of Sustainability and City Special Events Coordinator on publicity, social media, and advertising activities. HarborFest - Scope of Work The selected Event Planner/Production Company will: Develop a strategic plan for successfully executing Chula Vista HarborFest. Coordinate with City of Chula Vista Special Events Coordinator and other City staff to organize sponsorships, event logistics, insurance requirements, etc. Work with Mayor and/or Councilmembers and City staff to manage fundraising activities and secure sponsorships to support parade and faire activities. Develop a schedule and timeline for all activities required to execute a successful event. Recommend budget needed to execute HarborFest and develop timeline and sponsorship package ideas to meet budget goals. Develop advertising recommendations, event program, conduct media buy, secure radio sponsorships and value-added elements. Coordinate publicity including pre-event news coverage and event news coverage. Coordinate graphic design and/or printing of flyers, ads, signage, and other collateral. Maintain and update event website (www.cvharborfest.com) and HarborFest social media sites including Facebook, Twitter and Instagram. Create social media toolkit for City social media sites including Facebook, Twitter and Instagram. Assist with fundraising activities and securing sponsorships to support event activities. Conduct outreach to secure event participants including non-profit organizations, food, craft, and other recommended festival vendors. Coordinate all programming including but not limited to bands, performers, musicians, and other participants. City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 62 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 Coordinate Food/Culinary and Wine/Beer/Spirits Festivals including assisting with securing participating restaurants, and wine, beer, and spirits vendors. Coordinate with the City to secure all necessary permits including but not limited to: Port of San Diego; Alcohol and Beverage Control; County of San Diego; City of Chula Vista Risk Management, Police Department, Fire Department, Building, Environmental Services, City Manager, and other departments; Emergency Medical Services; and other agencies depending on HarborFest event requirements. Secure a parking vendor to coordinate paid/preferred parking. Secure items needed for event including staging, banners, signage, sound, lighting, fencing, tables, chairs, umbrellas, etc. Secure items to support expected crowd in attendance including portable toilets, hand washing stations, etc. Secure items for any displays or booths including tenting, tables, chairs, generators, etc. Coordinate with Chula Vista Police and Fire Departments and Special Events Coordinator to develop a traffic plan and secure appropriate number of officers or traffic control personnel to maintain public safety. Provide strategic direction and conduct activities required for a successful event. Coordinate with City Special Events Coordinator on publicity, social media, and advertising activities. - Scope of Work The selected organization/consultant will: Develop a strategic plan for s Coordinate with ad-hoc task force and Office of Communications to execute the parade. Coordinate with City of Chula Vista Special Events Coordinator and other City staff to organize parade and faire logistics, activities, insurance requirements, etc. Work with Councilmembers and City staff to manage fundraising activities and secure sponsorships to support parade and faire activities. Develop a schedule and timeline for all activities required to execute some successful parade and faire. Recommend budget needed to execute parade and faire and develop timeline and strategies to meet budget goals. Develop advertising recommendations, event program, conduct media buy, secure radio sponsorships and value-added elements. Coordinate publicity including pre-event news coverage and event news coverage. Coordinate graphic design and/or printing of flyers, ads, signage, and other collateral. Maintain and update event website (www.starlightparade.com) and Starlight social media sites including Facebook, Twitter and Instagram. Create social media toolkit for City social media sites including Facebook, Twitter and Instagram. Conduct outreach to secure faire participants including activities, food, craft, and other recommended festival vendors. Coordinate all programming including but not limited to bands, performers, musicians, and other participants. Conduct outreach to secure parade participants including marching bands and other musicians, floats, community organizations, and other participants. Secure select vendors to provide snacks and beverages for sale. Secure items needed for parade including staging, sound, lighting, etc. Secure items to support expected crowd in attendance including portable toilets, hand washing stations, etc. Secure items for any displays or booths including tenting, tables, chairs, generators, etc. Coordinate with Chula Vista Police Department, Streets team, Traffic Engineering and Special Events Coordinator to develop a traffic plan and secure appropriate number of officers or traffic control personnel to maintain public safety. Provide strategic direction and conduct activities required for a successful parade. Coordinate with City Special Events Coordinator on publicity, social media, and advertising activities. City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 63 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 Accounting Event Planner/Production Company will collect and process all fees and security deposits including for band registration, vendors, as well as commercial and non-profit booth rentals, sponsor fees as requested, or any other fees. These payments may be in the form of a check, credit card, or cash. Event Planner/Production Company will use funds collected to pay for expenses pre-approved by City of Chula Vista, including but not limited to advertising, printing, signage, audio visual, staging, rental items (tables, chairs, tents, etc.), portable toilets, or other items agreed to by the parties, but only to the extent of available funds. In addition to funds collected by Event Planner/Production Company, City of Chula Vista will advance funds (only to the extent of available funds) to provide sufficient funds to cover event expenses paid by Event Planner/Production Company and previously approved by City of Chula Vista. Event Planner/Production Company will provide a detailed accounting of all vendor, commercial and non- profit booth rentals. In addition, Event Planner/Production Company will provide an itemized accounting of all expenses paid, including copies of invoices and cancelled checks. Any funds remaining on account with Event Planner/Production Company after payment of all event expenses will be remitted to City of Chula Vista. City of Chula Vista will receive and process most sponsor and donation funds except for credit card payments, which will be processed by Event Planner/Production Company. 3.Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin February 6, 2019 and end on June 30, 2021 for completion of all Required Services. 4. Compensation: A. Form of Compensation Fixed Fee Paid in Increments. For the completion of each Deliverable of the Required Services, as identified in section 2.B., above, City shall pay the fixed fee associated with each Deliverable, in the amounts set forth below: South Bay Earth Day: Task No. Deliverable Amount 1 Upon Execution of Agreement $3,000 2 Develop Strategic Plan $5,000 3 Develop Promotional Program $3,000 4 Develop Event Production Plan $4,000 HarborFest Task No. Deliverable Amount 1 Upon Execution of Agreement $8,750 2 Develop Strategic Plan $8,750 3 Develop Promotional Program $8,750 4 Develop Event Production Plan $8,750 Starlight Parade Task No. Deliverable Amount 1 Upon Execution of Agreement $5,000 2 Develop Strategic Plan $10,000 3 Develop Promotional Program $5,000 City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 64 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 4 Develop Event Production Plan $5,000 B. Reimbursement of Costs Notwithstanding the foregoing, the maximum amount to be paid to the Contractor/Service Provider for services performed through June 30, 2021 shall not exceed $150,000. 5.Special Provisions: Permitted Sub-Contractor/Service Providers: None Security for Performance: None Notwithstanding the completion date set forth in Section 3 above, City has option to extend this Agreement for three (3) additional one-year terms, defined as the period July 1 to June 30. The City Manager or Director of Finance/Treasurer shall be authorized to exercise the extensions on behalf of the City. If the City exercises an option to extend, each extension shall be on the same terms and conditions contained herein, provided that the amounts specified in Section 4 above may be increased by up to ten percent for each extension. The City shall give written notice to Contractor/Service Provider of Exercise of Option to Extend document. Such notice shall be provided at least 30 days prior to the expiration of the term. City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 65 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 EXHIBIT B INSURANCE REQUIREMENTS Contractor/Service Provider shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the following types and minimum amounts of insurance, as indicated by checking the applicable boxes (x). Type of Insurance Minimum Amount Form General Liability: $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 injury Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this Agreement or the general aggregate limit must be twice the required occurrence limit Additional Insured Endorsement *Must be primary and must not or Blanket AI Endorsement for exclude Products/Completed 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 damage Code 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 Other Negotiated Insurance Terms: none City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 66 of 184 DocuSign Envelope ID: D56E68E9-E098-4785-84AC-1E6E2555ED00 EXHIBIT C CONTRACTOR/SERVICE PROVIDERCONFLICT OF INTEREST DESIGNATION 12 The Political Reform Act and the Chula Vista Conflict of Interest Code local government officials, including some Contractor/Service Providers, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, Contractor/Service Providers designated to file the Form 700 are also 3 required to comply with certain ethics training requirements. 4 A. Contractor/Service Provider IS a corporation or limited liability company and is therefore EXCLUDED from disclosure. B. Contractor/Service Provider is NOT a corporation or limited liability company and disclosure designation is as follows: APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES (Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.) Name Email Address Applicable Designation Enter Name of Each Individual Enter email address(es) A. Full Disclosure Who Will Be Providing Service B. Limited Disclosure (select one or more of Under the Contract If the categories under which the Contractor shall individuals have different file): disclosure requirements, 1. 2. 3. 4. 5. 6. 7. duplicate this row and Justification: complete separately for each individual C. Excluded from Disclosure 1. Required Filers Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition of Contractor/Service Provider 2. Required Filing Deadlines Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement. 3. Filing Designation The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Contractor/Service Provider will provide. Notwithstanding this designation or anything in the Agreement, the Contractor/Service Provider is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2. Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written determination of the requirement to comply with the disclosure requirements set forth in the Code. Completed by: Olga Berdial 1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704. 2 Chula Vista Municipal Code §§2.02.010-2.02.040. 3 Cal. Gov. Code §§53234, et seq. th 4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4 261; FPPC Reg. ude corporation or limited liability company). City of Chula Vista Agreement No.: 19003 Consultant Name: McFarlane Promotions, Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 67 of 184 FIRSTAMENDMENT toAgreement between the City of Chula Vista and MCFARLANE PROMOTIONS, INC. FOR EVENT PLANNING SERVICES FOR 2019 AND 2020 SOUTHBAY EARTH DAY, HARBORFEST AND THE STARLIGHT PARADE & CHILDREN'S FAIRE This FIRSTAMENDMENT“Amendment” is entered into effective as of July 9, 2019(“Effective Date”)by and betweenthe City of Chula Vista (“City”) andMCFARLANE PROMOTIONS, INC. (“Consultant”)with reference to the following facts: RECITALS WHEREAS,City and Consultant previously entered into THE CITY OF CHULA VISTA CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT WITH MCFARLANE PROMOTIONS, INC. TO PROVIDE EVENT PLANNING SERVICES FOR 2019 AND 2020 SOUTHBAY EARTH DAY,HARBORFEST AND THE STARLIGHT PARADE & CHILDREN'S FAIRE(“Original Agreement”)onFebruary 6, 2019; and WHEREAS, Cityand Consultant desiretoamend the Agreement toallowCity to advance funds to support pre-event and event-day payment of subcontractors and vendors to secure services and supplies approved by City. NOW, THEREFORE, in consideration of the above recitals and the mutual obligationsof the parties set forth herein,City and Consultantagree as follows: 1.The following is added to Paragraph 4.B, Reimbursement of Costs, Exhibit A, Page 18 of the Original Agreement, Agreement Control Number 19003: The City will advance funds to support pre-event and event-day payment of subcontractors and vendors to secure services and supplies approved by City. The maximum amount of funds that may be advanced to Contractor/Service Provider shall not exceed $190,000 percalendar year. 2.Except as expressly provided herein, all other terms and conditions of the Original Agreement shall remain in full force and effect. 3.Each party represents that it has full right, power and authority to execute this FIRST Amendment and to perform its obligations hereunder, without the need for any further action under its governing instruments, and the parties executing this Amendment on the behalf of such party are duly authorized agents with authority to do so. City of Chula Vista Amendment to Agreement No.: 19003-A1 Consultant Name:MCFARLANE PROMOTIONS, INC. Rev. 8/23/16 2019-07-09 Agenda PacketPage 68 of 184 SIGNATURE PAGE TO FIRST AMENDMENT TO THE CITY OF CHULA VISTA CONTRACTOR/SERVICE PROVIDER SERVICES AGREEMENT WITH MCFARLANE PROMOTIONS, INC. TO PROVIDE EVENT PLANNING SERVICES FOR 2019 AND 2020 SOUTHBAY EARTH DAY, HARBORFEST AND THE STARLIGHT PARADE & CHILDREN'S FAIRE MCFARLANE PROMOTIONS, INC.CITY OF CHULA VISTA BY:________________________________BY: ________________________________ LAUREL MACFARLANEMARY CASILLAS SALAS CEOMAYOR 1 ATTEST BY:_________________________________ KERRY K. BIGELOW, MMC CITY CLERK APPROVED AS TO FORM BY: _________________________________ GLEN R. GOOGINS CITY ATTORNEY City of Chula Vista Amendment to Agreement No.: 19003-A1 Consultant Name:MCFARLANE PROMOTIONS, INC. Rev. 8/23/16 2019-07-09 Agenda PacketPage 69 of 184 File ID: 19-0262 TITLE A.RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RESCINDING CITY COUNCIL ACTION TAKEN ON APRIL 9 AND 16, 2019 REGARDING AN ORDINANCE ADDING CHAPTERS 3.60 AND 3.61 TO THE CHULA VISTA MUNICIPAL CODE RELATING TO COMMUNITY FACILITIES DISTRICTS GENERALLY AND THE BAYFRONT PROJECT SPECIAL TAX FINANCING DISTRICT B.ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTERS3.60 AND 3.61 TO THE CHULA VISTA MUNICIPAL CODE RELATING TO COMMUNITY FACILITIES DISTRICTSGENERALLY AND THE BAYFRONT PROJECT SPECIAL TAX FINANCING DISTRICT(FIRST READING) Council adopt the resolution and place the ordinance on first reading. SUMMARY Community Facilities Districts (CFDs) are used as a public financing mechanism in the City of Chula Vista. The Districts(the “Goals and Policies”) and the City’s CFD Ordinance ratify and govern the use of CFDs in the City. Codifying the CFD Ordinance as Chapter 3.60 of the Chula Vista Municipal Code (CVMC) is recommended. Additional edits to the CFD Ordinance to expand the list of authorized public facilities and services to include certain facilities and services to be financed in a future special tax districton the Chula Vista Bayfront are also recommended, along with the adoption ofCVMCChapter 3.61(Bayfront Project Special Tax Financing DistrictProcedural Ordinance). The Council approved the first reading of a similar ordinance on April 9, 2019 (see Agenda item 19-0120), with the second reading scheduled for April 16, 2019 (Agenda item 19-0234). The version of the ordinance published with the April 16 second reading was incorrect and a second reading of the ordinance is required. Additional modifications to the ordinance are proposed, necessitating a new first reading. Approval of a resolution rescinding the previous first reading and placement of a revised ordinance on first reading is recommended. The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as v.001 Page|1 2019-07-09 Agenda PacketPage 70 of 184 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. Not applicable. DISCUSSION The Mello-Roos Community Facilities Act of 1982 (the “Mello-Roos Act”) provides local jurisdictions with analternative method of financing certain public capital facilitiesand services, especially in developing areas and areas undergoing rehabilitation. Special tax districts formed pursuant to the Mello-Roos Act are referred to as Community Facilities Districts, or CFDs. On April 28, 1998theCouncil adopted Ordinance 2730, enacting the City of Chula Vista Community Facilities District Ordinance (the “CFD Ordinance”). In adopting the CFD Ordinance pursuant to its Charter City authority, the City incorporatedthe Mello-Roos Act with modifications to accomplish the following: (1) includeall maintenance activities authorized by the Landscaping and Lighting Act of 1972 (the “1972 Act”); (2) include maintenance activities not listed in the Mello-Roos Act or the 1972 Act (i.e. monitoring activities on privately owned parcels within the Otay Ranch Preserve and maintenance of pedestrian bridges and community gardens); and (3) establish an operating reserve fund for open space districts. Staff recommends codifying the CFD Ordinance as CVMC Chapter 3.60 (Community Facilities Districts – General) for increased transparency and simplified administration. Updates to the ordinance for consistency with CVMC standards are also recommended, including replacing the section with a section, the addition of a Definitionssection, and minorreordering of sections. Additional modifications to further expand the list of explicitly authorized services and facilities are also recommended, as described below. Asimilar ordinance was placed on first reading by the City Council on April 9, 2019(the “April 9 Ordinance”). Adoption of Resolution A rescinds the Council action placing the April 9Ordinance on first reading. A redline comparison of the April 9 Ordinance and the proposed ordinance is provided as Attachment 1. Chula Vista BayfrontSpecial Tax District On May 8,2012, the City of Chula Vista and the San Diego Unified Port District entered into a Bayfront Master Plan Financing Agreement (the “Financing Agreement”) for the Chula Vista Bayfront Master Plan (CVBMP). The Financing Agreement identified the rights andobligations of each agency, with respect to the financing, development, and construction of public improvements, infrastructure, and a planned convention/conferencecenter in the CVBMParea. The Financing Agreement was subsequently amended and restated to recognize additional rights and obligations of the respective agencies, effective June 20, 2017. In Section 4.2.2(d)ofthe Financing Agreement both parties acknowledged a mutual desire to explore the creation of a vehicle by which additional occupancy-basedrevenues,in an amount up to one-half of the current Transient Occupancy Tax (TOT) for certain projects within the CVBMParea,could be applied to the Page|2 2019-07-09 Agenda PacketPage 71 of 184 cost of public improvements and/or the planned convention/conference center. The Financing Agreement recognized the creation of a district under the Mello-Roos Actor the CFD Ordinanceas a possible public financing mechanism for this purpose and the parties agreed to consider the creation of such a district. Formation efforts for a Bayfront special tax districtare underway and will be brought forward to the Council for consideration in summer2019. In undertaking the formation of the Bayfrontspecial tax district, the need to further amend the CFD Ordinance to authorize additional services and facilities not explicitly authorized by the Mello-Roos Actwas identified. Additional services and facilities to be authorized by the CFD Ordinance include the following: Transportation services (e.g. public shuttle operations); and Promotion of public events and tourism within the district; and Security, sanitation, graffiti removal, street and sidewalk cleaning and other municipal services supplemental to those normally provided by the City; and Repair and replacement of facilities the district maintains and/or operates; and Parking improvements; and Energy efficiency, water conservation, and renewable energy improvements; and Ecological and sustainability educational improvements. In further support of a future Bayfront special tax district, the adoption of CVMC Chapter 3.61 (Bayfront Project Special Tax Financing DistrictProcedural Ordinance)is recommended. As proposed, Chapter 3.61 establishes a procedure for financing certain facilities,maintenance,and services to serve the CVBMP area, through the establishment of a Bayfront Project Special Tax Financing District (the “Bayfront District”). Chapter 3.61 incorporates the provisions of the Mello-Roos Act and the California Streets and Highways Code, while identifying certain provisions that willnot apply or that will be modified. Examples include explicitly authorizing the Bayfront District to finance theacquisition, construction, expansion, reconstruction, replacement, rehabilitation, upgrade,and maintenance of a convention center facilityand replacing the Mello Roos Act’s two-year limit on capitalized interest with a provision allowing the City Council to establish the period of capitalized interest which may be financed by the Bayfront District. Additionalmodifications and exclusions of Mello-Roos Act provisions largely relate to the formation process for the future Bayfront District,which willrequire an election of landowners, not registered voters. The Bayfront District special tax will be levied by hotel and campsite operators on transient occupants (hotel and campsite visitors). The tax will not be assessed on traditional residential uses. As such, it is more appropriate for the district electors to be the landowners, rather than the registered voters of the district, as required under the Mello-Roos Act. As previously described, a similar ordinance was placed on first reading by the City Council on April 9, 2019. Adoption of Resolution A rescinds the Council action placing the April 9 Ordinance on first reading. A redline comparison of the April9 Ordinance and the proposed ordinance is provided as Attachment 1. Page|3 2019-07-09 Agenda PacketPage 72 of 184 Next Steps If approved, CVMC Chapters 3.60 and 3.61will be effective 30 days after the second readingof the ordinance. Staff intends to return with a Resolution of Intentto form the previously described Bayfront Districtimmediately following the effective date of the ordinance. The date of the public hearing to consider establishment of the Bayfront District will be set at that time. Staff has reviewed the property holdings of the City Council members and has found no property holdings within 1,000 feet of the boundaries of the property which is the subject of this action. Consequently, this item doesnot 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 purposesof the Political Reform Act (Cal. Gov’t Code §87100, .). Staff is not independently aware and has not been informed by anyCity Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. There is no current year fiscal impact. All costs associated with preparation of the report and proposed resolution and ordinance are funded byexistingcurrent year appropriations. There is no ongoing fiscal impact resulting from codifying the existing CFD Ordinance. Approving updates to the CFD Ordinance to allow for the financing of additional facilities and services in CFDs and adopting the Bayfront Project Special Tax Financing District Procedural Ordinance support development of the Chula Vista Bayfront. ATTACHMENTS 1.Redline comparison of the April 9Ordinance and the proposed ordinance. Page|4 2019-07-09 Agenda PacketPage 73 of 184 Attachment 1 ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTERS 3.60 AND 3.61 TO THE CHULA VISTA MUNICIPAL CODE RELATING TO COMMUNITY FACILITIES DISTRICTS GENERALLY AND THE BAYFRONT PROJECT SPECIAL TAX FINANCING DISTRICT WHEREAS, right and power to make and enforce all laws and regulations with respect to municipal affairs and certain other matters in accordance with and as more particularly provided in Sections 3, 5, WHEREAS, the Mello-- Roos facilities and services, especially in developing areas and areas undergoing rehabilitation; and WHEREAS, on April 28, 1998, the City Council adopted Ordinance 2730, enacting the WHEREAS, the CFD Ordinance authorizes community facilities districts to finance habitat maintenance and the monitoring of biological resources and certain maintenance services authorized to be financed through the Landscape and Lighting Act of 1972, but not expressly authorized in the Mello-Roos Act; and WHEREAS, the City Council desires to authorize additional services and facilities to be financed in community facilities districts, including public shuttle operations; promotion of public events and tourism within districts; security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services within districts supplemental to those normally provided by the City; parking improvements; energy efficiency, water conservation, and renewable energy improvements; ecological and sustainability educational improvements; and convention center facilities; and WHEREAS, the City Council also desires to establish a procedure for financing certain public capital facilities and services through the establishment of the Bayfront Project Special Tax Financing District; and WHEREAS, the City Council of the City, acting under and pursuant to the powers reserved to the City under Sections 3, 5, and 7 of the Constitution and the Charter, finds that the public interest and necessity require the enactment of this ordinance to authorize, and establish the authorization and procedure for, the formation of community facilities districts by the City to 2019-07-09 Agenda PacketPage 74 of 184 Ordinance Page 2 finance such additional public services and facilities not authorized by the Mello-Roos Act as the City Council may deem necessary. NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. Chapter 3.60 is hereby added to the Chula Vista Municipal Code to read as follows: Chapter 3.60 Community Facilities Districts - General Sections: 3.60.010 Short title. 3.60.020 General intent. 3.60.030 Definitions. 3.60.040 Authority and procedure. 3.60.050 Nonexclusivity. 3.60.060 Amendments to Mello-Roos ActAdditional Authority. 3.60.010 Short title. This chapter shall be known as and may be cited as 3.60.020 General intent. The City Council intends to permit the financing of public services and facilities pursuant to the authorization and procedure set forth in this chapter, as well as by any other method permitted by law. This chapter is enacted pursuant to the powers reserved to the City under Sections 3, 5, and 7 of Article XI of the California Constitution and the City Charter. 3.60.030 Definitions. chapter. 22525 and pedestrian bridges. Section 22531. --Roos Community Facilities Act of 1982 (Chapter 2.5, commencing with Section 53311 of Part 1, ArticleDivision 2, Title 5 of the California Government Code), as amended from time to time.). 2019-07-09 Agenda PacketPage 75 of 184 Ordinance Page 3 ervicing, as defined in Streets and Highways Code Section 22538. 3.60.040 Authority and procedure. Whenever the public interest and necessity so require, the City Council of the City may, acting under and pursuant to this chapter, establish a community facilities district as provided for in the Mello-Roos Act, as modified herein. Except as otherwise provided in this chapter, the provisions of the Mello-Roos Act, now in effect or as such act may be amended from time to time, are hereby incorporated in this chapter by this reference and made a part hereof. 3.60.050 Nonexclusivity. The provisions of this chapter are not exclusive. The power and authority conferred upon the City Council by the provisions of this chapter are in addition to and supplemental to the powers conferred by the Charter, any other ordinance of the City, or law. Additionally, the City Council may elect to follow the procedures now or hereafter provided by general law, including without limitation, the Mello-Roos Act; provided, however, that whenever the City is acting pursuant to this chapter the provisions of this chapter shall be controlling to the extent that they are in conflict with any of the provisions of such general law, including the Mello-Roos Act. 3.60.060 Amendments to Mello-Roos ActAdditional Authority. A. TheIn addition to the services authorized to be financed pursuant to Government Code Section 53313 are hereby amended to add and include, a district created pursuant to this chapter is authorized to finance: 1. The maintenance, operation and management of public property in which the City of Chula Vista has a property interest in or, private property that is required to be dedicated or maintained as open space or for habitat preservation or both. Such property may be located outside the boundaries of the applicable community facilities district and outside the jurisdictional boundaries of the City. Such maintenance, operation and management shall mean the furnishing of services and materials for the ordinary and usual maintenance, operation and management of any open space or habitat area as may be required by the City or other public agency charged with the responsibility to maintain, operate, or manage any such area. Such services may include but shall not be limited to the following: a. Repair, removal or replacement of any improvement, structure or facility necessary or convenient to the maintenance, operation or management of the open space or habitat area; and b. Providing for the life, growth, health, and beauty of habitat, including the cultivation, irrigation, trimming, spraying, fertilizing, or treating of disease or injury; and 2019-07-09 Agenda PacketPage 76 of 184 Ordinance Page 4 c. The removal of trimmings, rubbish, debris, and other solid waste; and d. The operation and management of open space and natural habitat, including biological monitoring and evaluation of data collected data; and e. The conduct of biological activities necessary to sustain the species being protected; and f. The operation and maintenance of pedestrian bridges and community gardens within or appurtenant to such open space or habitat area(s).; and g. Such other services or facilities as are necessary to fulfill the purpose of this section. 2. The Maintenance and/or Servicing of Improvements. 3. Public shuttle operations. 3. Transportation services. 4. Promotion of public events and tourism; provided, however, the special tax financing any such promotion shall not be apportioned in any tax year on any property in residential use in such tax year, as determined by the City Council, in its capacity as the legislative body of the community facilities district authorized to finance such promotion. 5. Security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the City or other service provider. 6. Life-cycleRepair and replacement costs for maintained and/or operatedof facilities the district maintains and/or operates. B. The facilities authorized to be financed pursuant to Government Code Section 53313.5 are hereby amended to add and include: 1. Parking improvements. 2. Energy efficiency, water conservation, and renewable energy improvements. 3. Ecological and sustainability educational improvements. C. Any community facilities district established for one or more of the purposes authorized in Government Code Section 53313 or in section A above may 2019-07-09 Agenda PacketPage 77 of 184 Ordinance Page 5 establish maintenance or service zones or areas within such district to facilitate the provision and administration of such services. D. At the time a community facilities district is formed to provide any of the services authorized pursuant to section A above or territory is annexed to an existing community facilities district which was formed to provide any of the services authorized pursuant to section A above, the owner or developer of the property within such newly formed community facilities district or the territory annexed to an existing community facilities district shall be responsible for providing such services or causing such services to be provided for a minimum period of one year from the date of formation of such community facilities district or the date of annexation of such territory to an existing community facilities district, respectively, or if required by the City Manager, until such later time as the open space or habitat area and/or the improvements which are to be financed from special taxes to be levied within such newly formed community facilities district or such territory annexed to an existing community facilities district are accepted by the City Manager or his or her designee. E. For each community facilities district formed to provide any of the maintenance and services authorized pursuant to section A above, there shall be established and maintained an annual operating reserve fund in an amount not to exceed one hundred percent (100%) of the annual maintenance, operations and management budget for each such community facilities district for any fiscal year. The rate and method of apportionment of the special tax for any such community facilities district shall provide that the special tax may be levied on all taxable property within the community facilities district prior tobefore the acceptance by the City or other public entity for operation, maintenance and management of the open space or habitat areas and/or improvements to be operated, maintained and managed from the proceeds of the special taxes in order to initially fund the operating reserve fund at an amount equal to one hundred percent (100%) of the estimated annual maintenance, operations and management budget for the first fiscal year following acceptance of such areas or improvements. If the areas and/or improvements are to be accepted incrementally, the operating reserve fund shall be initially funded incrementally in an amount equal to one hundred percent (100%) of the estimated annual maintenance, operations and management budget for the first fiscal year following acceptance of such increment of the areas and/or improvements. A precondition to the acceptance of any open space or habitat area and/or improvements by the City or another public entity for operation, maintenance and management shall be that the operating reserve fund for such area or improvements must have been funded at an amount equal to one hundred percent (100%) of the annual budget for the operation, maintenance, and management of such area and/or improvements for the fiscal year following the apportionment of the special tax shall further provide that following acceptance of the areas and/or improvements, or any increment thereof, the proceeds of the annual special tax levy may be used to replenish the operating reserve fund to the Reserve Fund Requirement provided that the annual special tax levy shall not 2019-07-09 Agenda PacketPage 78 of 184 Ordinance Page 6 exceed the authorized maximum special tax for such fiscal year. Such operating reserve shall be maintained for and may be used to provide necessary operating revenue for the first six (6) months of each fiscal year. Section II. Chapter 3.61 is hereby added to the Chula Vista Municipal Code to read as follows: Chapter 3.61 Bayfront Project Special Tax Financing District Procedural Ordinance Sections: 3.61.010 Short title. 3.61.020 Purpose and intent. 3.61.030 Definitions. 3.61.040 Special tax proceedings. 3.61.050 Nonexclusivity. 3.61.060 Construction. 3.61.070 Incorporation of the Mello-Roos Community Facilities Act of 1982 and portions of the California Streets and Highways Code. 3.61.080 Authorized expenditures. 3.61.090 Hearing Continuances. 3.61.100 Election; Voter qualifications; Ballots. 3.61.110 Notice of special tax lien. 3.61.1210 Application of special tax. 3.61.1320 Special tax collected with transient occupancy tax. 3.61.1430 Optional collection of delinquent special taxes on secured property tax roll. 3.61.1540 Compliance with this Chapter. 3.61.010 Short title. Special Tax 3.61.020 Purpose and intent. The purpose of this Chapter is to establish a procedure for financing certain public and private improvements and maintenance and services to serve the Chula Vista Bayfront Project through the establishment of a Bayfront Project Special Tax Financing District, the levy and collection of special taxes withintherein by such district and the issuance of bonds of such district secured by such special taxes for the purpose of financing convention center facilities and certain other public improvements. The City Council intends to permit the financing of public services and public and private improvements pursuant to the authorization and procedure set forth in this Chapter, as 2019-07-09 Agenda PacketPage 79 of 184 Ordinance Page 7 well as by any other method permitted by law. This Chapter is enacted pursuant to the powers reserved to the City under Sections 3, 5, and 7 of Article XI of the California Constitution and the City Charter. 3.61.030 Definitions. Terms defined in the Mello-Roos Act but not defined in this Chapter shall have the meaning given such terms in the Mello-Roos Act. For purposes of this Chapter the following definitions shall apply and to the extent the same term is defined in the Mello- Roos Act the following definition shall apply to such term: all, when referred to in the Mello-Roos Act or herein, mean this Chapter 3.61 of the CVMC. facilities d-Roos Act or herein, mean the District. Convention real property, equipment or personal property (in each case having an expected useful life of five years or longer) that comprises any portion of a convention center or conference center, and the construction, acquisition, rehabilitation, replacement or upgrade thereto, whether publicly or privately owned. Special Tax Financing District established pursuant to this Chapter. purposes of this Chapter, have the meaning given such term in Section 53317(f) of the Mello-Roos Act; provided, however, the City of Chula Vista shall be the Landowner of all land within the District owned by the City in its capacity as a charter city or as the successor agency to the Redevelopment Agency of the City of Chula Vista and the Port District shall be the Landowner of all land within the District owned by such districtthe Port District. - all have the meaning given such term in CVMC 3.40.020. 2019-07-09 Agenda PacketPage 80 of 184 Ordinance Page 8 3.61.040 Special tax proceedings. Proceedings for the formation of a Bayfront Project Special Tax Financing District for the purposes set forth in section 3.61.020 may be conducted pursuant to this Chapter whether or not provided authorized by state law. 3.61.050 Nonexclusivity. This Chapter is not, in any way, exclusive. The power and authority conferred upon the City Council by the provisions of this Chapter are in addition to and supplemental to the powers conferred by the Charter, any other ordinance of the City, or law, including but not limited to the Mello-Roos Act. Additionally, the City Council may elect to follow the procedures now or hereafter provided by general law, including without limitation, the Mello-Roos Act; provided, however, that whenever the City is actingacts pursuant to this Chapter the provisions of this Chapter shall be controlling to the extent that they are in conflict with any of the provisions of such general law, including the Mello-Roos Act. 3.61.060 Construction. This Chapter is to be liberally construed to achieve its purposes. 3.61.070 Incorporation of the Mello-Roos Community Facilities Act of 1982 and portions of the California Streets and Highways Code. A. Except as otherwise provided in this Chapter, the Mello-Roos Act and those sections of the California Streets and Highways Code and any amendments thereto, referred to in the Mello-Roos Act, are incorporated in and made a part of this Chapter. B. Except as otherwise provided by this Chapter, the mode and manner forof making improvements, for levying and collecting special taxes and for issuing bonds shall be as prescribed in the Mello-Roos Act. In any conflict between the provisions of the Mello-Roos Act or the referenced portions of the California Streets and Highways Code, the provisions of this Chapter shall prevail. C. The provisions of Sections 53312.7, 53312.8, 53313.6, 53313.7, 53313.9, 53317(b), 53319(d), 53321(b) and (f), 53325.6 (and the reference to 53325.6 contained in Section 53331), 53329, 53329.5, 53340(d) and (f)(C), 53340.1(b), 53345.8, 53352, 53362.5, and 53365 of the Mello-Roos Act are not incorporated into this Chapter and shall have no application to proceedings conducted pursuant to this Chapter. D. The provisions of Section 53313.51 of the Mello-Roos Act notwithstanding, whenever the City is a party to construction contracts, the City may use normal public works contracting procedures even if they do not involve or require the 2019-07-09 Agenda PacketPage 81 of 184 Ordinance Page 9 E. For purposes of this Chapter, clause (n) of Section 53313.5 of the Mello-Roos Act is amended to read as follows: In addition to any other facilities that may be financed pursuant to Section 53313.5, the District may finance the acquisition, construction, expansion, reconstruction, replacement, rehabilitation, expansion, upgrade and maintenance of any Convention Center Facility F. For purposes of this Chapter, the provisions of Section 53314.3 of the Mello-Roos Act are amended to read as follows (deletions are shown in strike-through text): In the first fiscal year in which a special tax or charge is levied for any facility or for any services in a community facilities district or a zone within a community facilities district, the legislative body shall include in the levy a sum sufficient to repay to the legislative body the amounts transferred to that district or zone pursuant to Section 53314. The amounts borrowed, with interest, shall be retransferred to the proper fund or funds from the first available receipts from the special levy in that district or zone. Notwithstanding the above provisions, the legislative body may, by a resolution adopted no later than the time of the first levy, extend the repayment of the transferred funds over a period of time not to exceed three consecutive years, in which event the levy and each subsequent levy shall include a sum sufficient to repay the amount specified by the legislative body for the year of the levy. G. For purposes of this Chapter, the provisions of Section 53314.5 of the Mello-Roos Act are amended to read as follows (deletions are shown in strike-through text): Pursuant to a resolution adopted by the legislative body, the legislative body may appropriate any of its available moneys to a revolving fund to be used for the acquisition of real or personal property, engineering services, or the construction of structures or improvements needed in whole or in part to provide one or more of the facilities of a community facilities district. The revolving fund shall be reimbursed from tax revenues or other moneys available from the facilities district, and no sums shall be disbursed from the fund until the legislative body has, by resolution, established the method by, and term not exceeding five years within, which the community facilities district is to reimburse the funds. The district shall reimburse the fund for any amount disbursed to the area within five years after such disbursement, together with interest as the current rate per annum received on similar types of investments by the legislative body as determined by H. For purposes of this Chapter, the provisions of Section 53314.6 of the Mello-Roos Act are amended to read as follows (deletions are shown in strike-through text): "(a) In connection with the financing of services and facilities pursuant to subdivision (f) of Section 53313 and subdivision (k) of Section 53313.5, the legislative body may establish a revolving fund to be kept in the 2019-07-09 Agenda PacketPage 82 of 184 Ordinance Page 10 treasury of the district. Except as provided in subdivision (b), moneys in the revolving fund shall be expended solely for the payment of costs with respect to those services and facilities. The revolving fund may be funded from time to time with moneys derived from the following: (1) Proceeds from the sale of bonds issued pursuant to Article 5 (commencing with Section 53345), notwithstanding any limitation contained in Section 53345.3. (2) Any taxes or charges authorized under this Chapter. (3) Any other lawful source. (b) Subject to the provisions of any resolution, trust agreement or indenture providing for the issuance of district bonds for the purposes set forth in subdivision (k) of Section 53313.5, the legislative body may withdraw money from the revolving fund whenever and to the extent that it finds that the amount of money therein exceeds the amount necessary to accomplish the purposes for which the fund was established. Any moneys withdrawn from the revolving fund shall be used to redeem bonds of the district issued for the purposes set forth in subdivision (k) of Section 53313.5 or shall be paid to taxpayers in the district in amounts that the legislative body determines. I. For purposes of this Chapter, the provisions of Section 53314.9 of the Mello-Roos Act are amended to read as follows (deletions are shown in strike-through text): "(a) Notwithstanding Section 53313.5, at any time either before or after the formation of the district, the legislative body may accept advances of funds or work in-kind from any source, including, but not limited to, private person or private entities and may provide, by resolution, for the use of those funds or that work in-kind for any authorized purpose, including, but not limited to, paying any cost incurred by the local agency in creating a district. The legislative body may enter into an agreement, by resolution, with the person or entity advancing the funds or work in- kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work in- kind, as determined by the legislative body, with or without interest, under the following conditions: (1) The proposal to repay the funds or the value of cost of the work in- kind, whichever is less, is included both in the resolution of intention to establish a district adopted pursuant to Section 53321 and in the resolution of formation to establish the district adopted pursuant to Section 53325.1, or in the resolution of consideration to alter the types of public facilities and services provided within an established districted adopted pursuant to Section 53334. 2019-07-09 Agenda PacketPage 83 of 184 Ordinance Page 11 (2) Any proposed special tax or change in a special tax is approved by the qualified electors of the district pursuant to this chapter. Any agreement shall specify that if the qualified electors of the district do not approve the proposed special tax or change in a special tax, the local agency shall return any funds which have not been committed for any authorized purposes by the time of the election to the person or entity advancing the funds. (3) (1) Any work in-kind accepted pursuant to this section shall have been performed or constructed as if the work had been performed or constructed under the direction and supervision, or under the authority of, the local agency. (b) The agreement shall not constitute a debt or liability of the local agency. J. For purposes of this Chapter, the provisions of clause (a) of Section 53321 of the Mello-Roos Act are amended to read as follows (deletions are shown in strike- through text): "(a) State that a community facilities district is proposed to be established under the terms of this chapter and describe the boundaries of the territory proposed for inclusion in the district, which may be accomplished by reference to a map on file in the office of the clerk, showing the proposed community facilities district. The boundaries of the territory proposed for inclusion in the district shall include the entirety of any parcel subject to taxation by the proposed district. K. For purposes of this Chapter, the provisions of Section 53324 of the Mello-Roos Act are amended to read as follows (additions are shown in italics text and deletions are shown in strike-through text): "(a) If 50 percent or more ofIf the registered voters, or six registered voters, whichever is more, residing within the territory proposed to be included in the district, or the owners of one-half or more of the area of the land in the territory proposed to be included in the district and not exempt from the special tax, file written protests against the establishment of the district, and protests are not withdrawn so as to reduce the value of the protests to less than a majority, such no further proceedings to create the specified community facilities district or to authorize the specified special tax shall be abandoned taken for a period of one year from the date of the decision of the legislative body. Notwithstanding the abandonment of the proceedings to create such specified community facilities district or to authorize such special tax pursuant to this Section 53324(a), new proceedings to create such specified community facilities district or to authorize such special tax may be initiated at any time thereafter. 2019-07-09 Agenda PacketPage 84 of 184 Ordinance Page 12 If the majority protests of the registered voters or of the landowners are only against the furnishing of a specified type or types of facilities or services within the district, or against levying a specified special tax, those types of facilities or services or the specified special tax shall be eliminated from the resolution of formation. Notwithstanding the elimination of such types of facilities or services or such specified special tax from the resolution of formation, new proceedings to authorize the furnishing of such types of facilities or services within the district or to authorize the levy of such specified special tax may be initiated pursuant to Article 3 of the Mello-Roos Act, as amended by this Chapter 3.61, at any time thereafter. (b) This section does not apply to the formation of a district pursuant to Section 53328.1. L. For purposes of this Chapter, the provisions of Section 53337 of the Mello-Roos Act are amended to read as follows (additions are shown in italics text and deletions are shown in strike-through text): 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the district, or the owners of one-half or more of the area of the land in the territory included in the district and not exempt from the special tax file written protests against changing the public facilities or services financed by the district, those changes in the facilities or services shall be eliminated from the resolution ordering changes in the types of public facilities or services to be financed and the changes shall not be included in a resolution for a period of one year from the date of the decision of the legislative body on the hearing. Notwithstanding the elimination of such changes in the public facilities and services from the resolution ordering changes in the types of public facilities and services to be financed, new proceedings to consider ordering such changes in the types of public facilities and services may be initiated at any time thereafter. If 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the district, or the owners of one-half or more of the area of the land in the territory included in the district and not exempt from the special tax file written protests against the levying of any additional special taxes within the district, or against a proposed alteration to an existing special tax within the district, those changes shall be eliminated from the resolution and the changes shall not be included in a resolution for a period of one year from the date of the decision of the legislative body on the hearing. Notwithstanding the elimination of such changes from the resolution, new proceedings to consider the levying of such additional special taxes or such alteration to such existing special tax may be initiated at any time thereafter. M. For purposes of this Chapter, the provisions of Section 53339.6 of the Mello-Roos Act are amended to read as follows (additions are shown in italics text and deletions are shown in strike-through text): 2019-07-09 Agenda PacketPage 85 of 184 Ordinance Page 13 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the existing community facilities district, or if 50 percent or more of the registered voters or six registered voters, whichever is more, residing within the territory proposed for annexation or proposed to be annexed in the future, or if the owners of one-half or more of the area of land in the territory included in the existing district and not exempt from special tax, or if the owners of one-half or more of the area of land in the territory proposed to be annexed or proposed to be annexed in the future and not exempt from the special tax, file written protests against the proposed annexation of territory to the existing community facilities district or the proposed addition of territory to the existing community facilities district in the future, and protests are not withdrawn so as to reduce the protests to less than a majority, the no further proceedings to annex the same territory, or to authorize the same territory to be annexed in the future, shall be abandoned undertaken for a period of one year from the date of decision of the legislative body on the issues discussed at the hearing. Notwithstanding the abandonment of the proceedings to annex the same territory or to authorize the same territory to be annexed in the future to the existing community facilities district, new proceedings to authorize the annexation of the same territory or to authorize the same territory to be annexed in the future to the existing community facilities district may be initiated at any time thereafter. N. For purposes of this Chapter, the provisions of Section 53345.3 are amended to read as follows (additions are shown in italics text and deletions are shown in strike-through text): estimated costs incidental to, or connected with, the accomplishment of the purpose for which the proposed debt is to be incurred, including, but not limited to, the estimated costs of construction or acquisition of buildings, or both; acquisition of land, rights-of-way, water, sewer, or other capacity or connection fees; lease payments for school facilities, satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued pursuant to this chapter; architectural, engineering, inspection, legal, fiscal, and financial consultant fees; bond and other reserve funds; discount fees; interest on any bonds of the district estimated to be due and payable within two years such period of time ofafterof issuance of the bonds as shall be established by the City Council; election costs; and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancement costs, and printing costs. Bonds may not be issued pursuant to this chapter to fund any of the services specified in Section 53313 or in Chapter 3.60 of the CVMC; however, bonds may be issued to fund capital O. For purposes of this Chapter, the provisions of Section 53359.5(b)(13) of the Mello-Roos Act shall apply only to special taxes levied on the property tax rolls pursuant to CVMC 3.61.1430. For all other special taxes, instead of the 2019-07-09 Agenda PacketPage 86 of 184 Ordinance Page 14 information required by Section 53359.5(b)(13),) of the Mello-Roos Act, the City shall include in the report the same information with respect to the special taxes taxes. 3.61.080 Authorized expenditures. A. Revenues from any special tax imposed under this Chapter may be spent on the following: debt service; lease payments; cost of issuance of securities issued for the purpose of financing or refinancing the Convention Center Facility and any other facilities the District is authorized to be financed by the Districtfinance; replenishment or funding of reserve funds established in connection with the issuance of debt (as defined in the Mello-Roos Act), administrative costs of the District; prepayment of such securities; direct costs of acquisition, planning, engineering, design, site preparation, and acquisition, construction, expansion, reconstruction, replacement, rehabilitation and upgrade of the Convention Center Facility and any other facilities authorized to be financed by the District is authorized finance; ongoing capital repairs and maintenance of the Convention Center Facility and any other facilities the District is authorized to be financed by the Districtfinance; the costs of providing sServices and maintenance as authorized by the District and all incidental and administrative costs authorized by the Mello-Roos Act or by the District under this Chapter. Revenues from any such special tax received by the District in any fiscal year may, to the extent necessary, be accumulated and applied to the payment of authorized expenditures incurred in a future fiscal year. 3.61.090 Hearing Continuances. All hearings called for under the Mello-Roos Act shall be required by this Chapter, except that they may be continued from time to time without further notice, but shall be completed within two years of the original hearing date. For purposes of this Chapter, the mailing of notices as provided in Sections 53322.4 and 53346 and any other similar provisions of the Mello-Roos Act shall be made to the Landowners of properties that would not be exempt from the special tax if the proposed special tax were being currently levied as proposed in the resolution of intention. 3.61.100 Election; Voter qualifications; Ballots. All election procedures set forth in the Mello-Roos Act shall apply to this Chapter, with the following exceptions: A. The qualified electors shall in all cases be the Landowners. B. The City Clerk shall in all cases be the election official. C. The Landowner-voters shall be those meeting the definition of Landowner as defined in CVMC 3.61.030 as of the close of the public hearing pertaining toon 2019-07-09 Agenda PacketPage 87 of 184 Ordinance Page 15 the establishment of the District unless the City Clerk is informed, by reliable evidence, of a change in ownership after that time and prior at least 24 hours before the deadline to the election.submit ballots. In that event, the City Clerk shall, at the request of the new Landowner submitted with such evidence no later than 24 hours before the deadline for returning ballots,, the City Clerk shall prepare a new ballot and deliver it to the new Landowner. The City Clerk shall also, in that event, accept and include in the canvass of the election theany ballot submitted by the new Landowner rather than theand exclude any ballot prepared forsubmitted by the former Landowner. D. Since the Landowner-voters are entitled to a secret ballot, and since ballots are required to contain the names of each Landowner and the number of votes each Landowner is entitled to cast, the City Clerk shall protect the confidentiality of the ballots. No person, other than those among the staff and consultants of the City who require access for the purposes of counting and canvassing the ballots, may have access to the ballots at any time, unless by order of a court of competent jurisdiction. The legislative body may authorize disclosure of ballots to ensure transparency of the election but only if ballots are redacted to conceal the identity of the Landowner-voters who cast such ballots. 3.61.110 Notice of special tax lien. A. For purposes of this Chapter, and to conform the language of the form of the notice of special tax lien contained in Section 3114.5 of the California Streets and Highways Code, the County Recorder shall index the notice of liens in the names of the property owners within the District whose properties are not exempt from the special tax. B. Whenever a parcel of property in the District begins to be used as a Hotel or a Campsite, either for the first time or for a period of time when it was not so used, that property shall thereupon become subject to the special tax. The City Clerk shall prepare an amended notice of special tax lien, or an amendment to the notice of special tax lien, that applies to and describes the new Hotel or Campsite property, as applicable, in accordance with the California Streets and Highways Code. The City Clerk shall arrange for recording of the document with the county recorder as provided in the California Streets and Highways Code. 3.61.1210 Application of special tax. Any special tax imposed pursuant tounder this Chapter is imposed by the District and not the City of Chula Vista. Such special tax shall be levied by the District, in any year, only on property located a parcel or a possessory interest in a parcel within the District for the use of such property during such year as a Hotel or Campsite (or, as the case may be, levied on the leasehold or other possessory interest in a parcel which is owned by a public agency and being used as a Hotel or Campsite).. 2019-07-09 Agenda PacketPage 88 of 184 Ordinance Page 16 3.61.1320 Special tax collected with transient occupancy tax. All special taxes imposed pursuant tounder this Chapter shall be due and remitted with chapter 3.40 of the CVMC. In the event that theIf a Landowner is not thean Operator, the Landowner shall cause the Operator to remit the special taxes imposed pursuant to this Chapter with the chapter 3.40, however, the special tax is not imposed on the Transient, but is imposed on the real propertyparcel or possessory interest in a parcel containing the Hotel or Campsite or, as the case may be, on the leasehold or other possessory interest containing the Hotel or Campsite if the parcel or parcels containing the Hotel or Campsite are owned by a public agency.. The Operator may, but is not required to, addpass the special tax through to Transients, and collect it with, the Rent. Subject to and as modified by the foregoing, the provisions of sections 3.40.040, 3.40.050, 3.40.070, 3.40.080, 3.40.090, 3.40.100, 3.40.110, 3.40.120, and 3.40.130 shall apply to any special tax levied pursuant to this Chapter. Despite the method of collection and administration, the special tax imposed by the District under this Chapter y tax and may be enforced, in the event of nonpayment, as provided in the Mello-Roos Act, including through a judicial foreclosure. 3.61.1430 Optional collection of delinquent special taxes on secured property tax roll. Any special taxes delinquent as of July 1 of any fiscal year, together with any penalties and interest accrued as of that date, may, at the option of the City Council, acting as the legislative body of the District, be placed on the secured property tax roll in that fiscal year and be levied on the parcel for which such special taxes are delinquent, where it shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. 3.61.1540 Compliance with this Chapter. Any proceedings taken, special tax levied or bonds issued pursuant to this Chapter shall not be held invalid for failure to comply with the provisions of this Chapter provided such failure is not a constitutional defect. Section III. Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or itstheir application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. 2019-07-09 Agenda PacketPage 89 of 184 Ordinance Page 17 Section IV. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section V. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section VI. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as to form by _____________________________________ ____________________________________ Kelly G. Broughton, FASLA Glen R. Googins Director of Development Services City Attorney 2019-07-09 Agenda PacketPage 90 of 184 RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTARESCINDING CITY COUNCIL ACTION TAKEN ON APRIL 9 AND 16, 2019 REGARDING AN ORDINANCE ADDING CHAPTERS 3.60 AND 3.61 TO THE CHULA VISTA MUNICIPAL CODE RELATING TO COMMUNITY FACILITIES DISTRICTS GENERALLY AND THE BAYFRONT PROJECT SPECIAL TAX FINANCING DISTRICT WHEREAS, at its regular meeting ofApril 9, 2019, the City Council approved the placement of an ordinance adding Chapters 3.60 and 3.61 to the Chula Vista Municipal Code relating to Community Facilities Districts generally and the Bayfront Project Special Tax Financing District on first reading; and WHEREAS, at the regular City Council meeting ofApril 16, 2019, the ordinance that was presented for second reading inadvertently did not match the ordinance placed on first reading; and WHEREAS, on this date, a revised ordinance adding Chapters 3.60 and 3.61 to the Chula Vista Municipal Code relating to Community Facilities Districts generally and the Bayfront Project Special Tax Financing District has been prepared and will be considered by the City Council; and WHEREAS, the City Council does now desire to rescind all prior actions on the originally proposed ordinance adding Chapters 3.60 and 3.61 to the Chula Vista Municipal Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that ithereby rescinds City Council action taken at its regular meetings of April 9 and 16, 2019 regarding an ordinance adding Chapters 3.60 and 3.61 to the Chula Vista Municipal Code relating to Community Facilities Districts Generally and the Bayfront Project Special Tax Financing District. Presented byApproved as to form by Kelly G. Broughton, FASLAGlen R. Googins Director ofDevelopment ServicesCity Attorney 2019-07-09 Agenda PacketPage 91 of 184 ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTAADDING CHAPTERS3.60AND 3.61 TO THE CHULA VISTA MUNICIPALCODERELATINGTOCOMMUNITY FACILITIESDISTRICTSGENERALLYANDTHE BAYFRONT PROJECT SPECIAL TAX FINANCING DISTRICT WHEREAS,the City of Chula Vista (the “City”) is a municipal corporation and charter city duly organized and existing under a freeholder’s charter pursuant to which the City has the right and power to make and enforce all laws and regulations withrespect to municipal affairs and certain other matters in accordance with and as more particularly provided in Sections 3, 5, and 7 of Article XI of the Constitution of the State of California (the “Constitution”) and the Charter of the City (the “Charter”); and WHEREAS,the Mello-Roos Community Facilities Act of 1982, as amended (the “Mello- RoosAct”), provides the City with an alternative method of financing certain public capital facilities and services, especially in developing areas and areas undergoing rehabilitation; and WHEREAS, on April 28, 1998, the City Council adopted Ordinance 2730, enacting the City of Chula Vista Community Facilities District Ordinance (the “CFD Ordinance”); and WHEREAS, the CFD Ordinance authorizes community facilitiesdistricts to finance habitat maintenance and the monitoring of biological resources and certain maintenance services authorized to be financed through the Landscape and Lighting Act of 1972, but not expressly authorized in the Mello-Roos Act; and WHEREAS, the City Councildesiresto authorize additional services and facilities to be financed in community facilities districts, including public shuttle operations;promotion of public events and tourism within districts; security, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services within districts supplemental to those normally provided by the City; parking improvements; energy efficiency, water conservation, and renewable energy improvements; ecological and sustainability educational improvements; and conventioncenter facilities; and WHEREAS, the City Council also desires to establish a procedure for financing certain public capital facilities and services through the establishment of the Bayfront Project Special Tax Financing District; and WHEREAS, the City Council of the City, acting under and pursuant to the powers reserved to the City under Sections 3, 5, and 7 of the Constitution and the Charter, finds that the public interest and necessity require the enactment of this ordinance to authorize, and establish the authorization and procedure for, the formation of community facilities districts by the City to 2019-07-09 Agenda PacketPage 92 of 184 Ordinance Page 2 finance such additional public services and facilities not authorized by the Mello-Roos Act as the City Council may deem necessary. NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I.Chapter 3.60is hereby added to the Chula Vista Municipal Code to read as follows: Chapter 3.60 Community Facilities Districts-General Sections: 3.60.010Short title. 3.60.020General intent. 3.60.030Definitions. 3.60.040Authority and procedure. 3.60.050Nonexclusivity. 3.60.060Additional Authority. 3.60.010Short title. This chapter shall be known as and may be cited as the “City of Chula Vista Community Facilities District Ordinance.” 3.60.020General intent. The City Council intends to permit the financing of public services and facilities pursuant to the authorization and procedure set forth in this chapter, as well as by any other method permitted by law. This chapteris enacted pursuant to the powers reserved to the City under Sections 3, 5, and 7 of Article XI of the California Constitution and the City Charter. 3.60.030Definitions. “Community facilities district” or “district” shall mean a district formed under this chapter. “Improvements” means improvements, as defined in Streets and Highways Code Section 22525 and pedestrian bridges. “Maintenance” means maintenance, as defined in Streets and Highways Code Section 22531. “Mello-Roos Act”means the Mello-Roos Community Facilities Act of 1982 (Chapter 2.5, commencing with Section 53311 of Part 1, Division2, Title 5 of the California Government Code). 2019-07-09 Agenda PacketPage 93 of 184 Ordinance Page 3 “Servicing” means servicing, as defined in Streets and Highways Code Section 22538. 3.60.040Authority and procedure. Whenever the public interest and necessity so require, the City Council of the City may, acting under and pursuant to this chapter, establish a community facilities district as provided for in the Mello-Roos Act, as modified herein. Except as otherwise provided in this chapter, the provisions of the Mello-Roos Act are hereby incorporated in this chapter by this reference and made a part hereof. 3.60.050Nonexclusivity. The provisions of this chapter are not exclusive. The power and authority conferred upon the City Council by the provisions of this chapter are in addition to and supplemental to the powers conferred by the Charter, any other ordinance of the City, or law. Additionally, the City Council may elect to follow theprocedures now or hereafter provided by general law, including without limitation, the Mello-Roos Act; provided, however, that whenever the City is acting pursuant to this chapter the provisions of this chapter shall be controlling to the extent that theyare in conflict with anyof the provisions of such general law, including the Mello-Roos Act. 3.60.060Additional Authority. A.In addition to the services authorized to be financed pursuant to Government Code Section 53313, a district created pursuant to this chapter is authorized to finance: 1.The maintenance, operation and management of public property in which the City of Chula Vista has a property interest,private property that is required to be dedicated or maintained as open space or for habitat preservation or both. Such property may be located outside the boundaries of the applicable district and outside the City. Such maintenance, operation and management shall mean the furnishing of services and materials for the ordinary and usual maintenance, operation and management of any open space or habitat area as may be required by the City or other public agency charged with the responsibility to maintain, operate, or manage any such area. Such services may include but shall not be limited to the following: a.Repair, removal or replacement of any improvement, structure or facility necessary or convenient to the maintenance, operation or management of the open space orhabitat area; and b.Providing for the life, growth, health, and beauty of habitat, including the cultivation, irrigation, trimming, spraying, fertilizing, or treating of disease or injury; and 2019-07-09 Agenda PacketPage 94 of 184 Ordinance Page 4 c.The removal of trimmings, rubbish, debris, and other solid waste; and d.The operation and management of open space and natural habitat, including biologicalmonitoring and evaluation of data collected ; and e.The conduct of biological activities necessary to sustain the species being protected; and f.The operation and maintenance of pedestrian bridges and community gardens within or appurtenant to such open spaceor habitat area(s); and g.Such other services or facilities as are necessary to fulfill the purpose of this section. 2.The Maintenance and/or Servicing of Improvements. 3.Transportation services. 4.Promotion of public eventsandtourism; provided, however, the special tax financing any such promotion shall not be apportioned in any tax year on any property in residential use in such tax year, as determined by the City Council, in its capacity as the legislative body of the district. 5.Security, sanitation, graffitiremoval, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the Cityor other service provider. 6.Repair and replacement of facilities the district maintains and/or operates. B.The facilities authorized to befinanced pursuant to Government Code Section 53313.5are hereby amended to add and include: 1.Parking improvements. 2.Energy efficiency, water conservation, and renewable energy improvements. 3.Ecological and sustainability educational improvements. C.Any district established for one or more of the purposes authorized in Government Code Section 53313 or in section A above may establish zones or areas within such district to facilitate the provision and administration of such services. 2019-07-09 Agenda PacketPage 95 of 184 Ordinance Page 5 D.At the time a districtis formed to provide any of the services authorized pursuant to section A above or territory is annexed to an existing districtwhich was formed to provide any of the services authorized pursuant to sectionA above, the owner or developer of the property within such newly formed districtor the territory annexed to an existing districtshall be responsible for providing such services or causing such services to be provided for a minimum period of one year from the date of formation of such districtor the date of annexation of such territory to an existing district, respectively, or if required by the City Manager, until such later time as the open space or habitat area and/or the improvements which are to be financed from special taxes to be levied within such newly formed districtor such territory annexed to an existing districtare accepted by the City Manager or his or her designee. E.For each districtformed to provide any of the maintenance and services authorized pursuant to section A above, there shall be established and maintained an annual operating reserve fund in an amount not to exceed one hundred percent (100%) of the annual maintenance, operations and management budget for each such districtfor any fiscal year. The rate and method of apportionment of the special tax for any such districtshall provide that the special tax may be levied on all taxable property within the districtbeforethe acceptance by the City or other public entity for operation, maintenance and management of the open space or habitat areas and/or improvements to be operated, maintained and managed from the proceeds of the special taxes to initially fund the operating reserve fund at an amount equal to one hundred percent (100%) of the estimated annual maintenance, operations and management budget for the first fiscal year following acceptance of such areas or improvements. If the areas and/or improvements are to be accepted incrementally, the operating reserve fund shall be funded incrementally in an amount equal to one hundred percent (100%) of the estimated annual maintenance, operations and management budget for the first fiscal year following acceptance of such increment of the areas and/or improvements. A precondition to the acceptance of any open space or habitat area and/or improvements by the City or another public entity for operation, maintenance and management shall be that the operating reserve fund for such area or improvements must have been funded at an amount equal to one hundred percent (100%) of the annual budget for the operation, maintenance, and management of such area and/or improvements for the fiscal year following the acceptance thereof (the “Reserve Fund Requirement”). The rate and method of apportionment of the special tax shall further provide that following acceptance of the areas and/or improvements, or any increment thereof, the proceeds of the annual special tax levy may be used to replenish the operating reserve fund to the Reserve Fund Requirement provided that the annual special tax levy shall not exceed the authorized maximum special tax for such fiscal year. Such operating reserve shall be maintained for and may be used to provide necessary operating revenue for the first six (6) months of each fiscal year. 2019-07-09 Agenda PacketPage 96 of 184 Ordinance Page 6 Section II.Chapter 3.61 is hereby added to the Chula Vista Municipal Code to read as follows: Chapter 3.61 Bayfront Project Special Tax Financing District Procedural Ordinance Sections: 3.61.010Short title. 3.61.020Purpose and intent. 3.61.030Definitions. 3.61.040Special tax proceedings. 3.61.050Nonexclusivity. 3.61.060Construction. 3.61.070Incorporation of the Mello-Roos Community Facilities Act of 1982 and portions of the California Streets and Highways Code. 3.61.080Authorized expenditures. 3.61.090Hearing–Continuances. 3.61.100Election; Voter qualifications; Ballots. 3.61.110Application of special tax. 3.61.120Special tax collected with transient occupancy tax. 3.61.130Optional collection of delinquent special taxes on secured property tax roll. 3.61.140Compliance with this Chapter. 3.61.010Short title. This chapter shall be known as and may be cited as the “Bayfront Project Special Tax Financing District Procedural Ordinance.” 3.61.020Purpose and intent. The purpose of this Chapteris to establish a procedure for financing certain public and private improvements and maintenance and services to serve the Chula Vista Bayfront Project through the establishment of a Bayfront Project Special Tax Financing District, the levy and collection of special taxes therein by such district and the issuance of bonds of such district secured by such special taxes for the purpose of financing convention center facilities and certain other public improvements. The City Council intends to permit the financing of public services and public and private improvements pursuant to the authorization and procedure set forth in this Chapter, as well as by any other method permitted by law. This Chapter is enacted pursuant to the powers reserved to the City underSections 3, 5, and 7 of Article XI of the California Constitution and the City Charter. 2019-07-09 Agenda PacketPage 97 of 184 Ordinance Page 7 3.61.030Definitions. Terms defined in the Mello-Roos Act but not defined in this Chaptershall have the meaning given such terms in the Mello-Roos Act. For purposes of this Chapterthe following definitions shall applyand to the extent the same term is defined in the Mello- Roos Act the following definition shall apply to such term: “Campsite” shall have the meaning given such term in CVMC 3.40.020. “Chapter” shall, when referred to in the Mello-Roos Act or herein, mean this Chapter 3.61 of the CVMC. “Community facilities district” shall, when used in the Mello-Roos Act or herein, mean the District. “ConventionCenter Facility” means any building, improvement to real property, equipment or personal property (in each case having an expected useful life of five years or longer) that comprises any portion of a convention center or conference center, and the construction, acquisition, rehabilitation, replacement or upgrade thereto, whether publicly or privately owned. “District” shall mean the Bayfront Project Special Tax Financing Districtestablished pursuant to this Chapter. “Hotel” shall have the meaning given such term in CVMC 3.40.020. “Landowner” shall, for the purposes of this Chapter, have the meaning given such term in Section 53317(f) of the Mello-Roos Act; provided, however, the City of Chula Vista shall be the Landowner of all land within the District owned by the City in its capacity as a charter city or as the successor agency to the Redevelopment Agency of the City of Chula Vista and the Port District shall be the Landowner of all land within the District owned by the PortDistrict. “Mello-Roos Act” shall have the meaning given such term in CVMC 3.60.030. “Occupancy” shall have the meaning given such term in CVMC 3.40.020. “Operator” shall have the meaning given such term in CVMC 3.40.020. “Port District” shall mean the San Diego Unified Port District. “Rent” shall have the meaning given such term in CVMC 3.40.020. “Services” shall include those services specified in CVMC 3.60.060. “Transient” shall have the meaning given such term in CVMC 3.40.020. 2019-07-09 Agenda PacketPage 98 of 184 Ordinance Page 8 3.61.040Special tax proceedings. Proceedings for the formation of a Bayfront Project Special Tax Financing District for the purposes set forth in section3.61.020 may be conducted pursuant to this Chapter whether or not authorizedby state law. 3.61.050Nonexclusivity. This Chapteris not, in any way, exclusive. The power and authority conferred upon the City Council by the provisions of this Chapter are in addition to and supplemental to the powers conferred by the Charter, any other ordinance of the City, or law, including but not limited to the Mello-Roos Act. Additionally, the City Council may elect to follow the procedures now or hereafter provided by general law, including without limitation, the Mello-Roos Act; provided, however, that whenever the City actspursuant to this Chapter the provisions of this Chapter shall be controlling to the extent that they are in conflict with any of the provisions of such general law, including the Mello-Roos Act. 3.61.060Construction. This Chapteris to be liberally construedto achieve its purposes. 3.61.070Incorporation of the Mello-Roos Community Facilities Act of 1982 and portions of the California Streets and Highways Code. A.Except as otherwise provided in this Chapter, the Mello-Roos Act and those sections of the California Streets and Highways Code, referred to inthe Mello- Roos Act, are incorporated in and made a part of this Chapter. B.Except as otherwise provided by this Chapter, the mode and manner ofmaking improvements, levying and collecting special taxes and issuing bonds shall be as prescribed in the Mello-Roos Act. In any conflict between the provisions of the Mello-Roos Act or the referenced portions of the California Streets and Highways Code, the provisions of this Chaptershall prevail. C.The provisions of Sections 53312.7, 53312.8, 53313.6, 53313.7, 53313.9, 53317(b), 53319(d), 53321(b) and (f), 53325.6 (and the reference to 53325.6 contained in Section 53331), 53329,53329.5, 53340(d) and (f)(C), 53340.1(b), 53345.8, 53352, 53362.5, and 53365of the Mello-Roos Act are not incorporated into this Chapterand shall have no application to proceedings conducted pursuant to this Chapter. D.The provisions of Section 53313.51 of the Mello-Roos Act notwithstanding, whenever the City is a party to construction contracts, the City may use normal public works contracting procedures even if they do not involve or require the identification of “discrete portions or phases” of the facilities to be constructed. E.For purposes of this Chapter, clause (n)of Section 53313.5of the Mello-Roos Act isamended to read as follows: 2019-07-09 Agenda PacketPage 99 of 184 Ordinance Page 9 “(n)In addition to any other facilities that may be financed pursuant to Section 53313.5, the District may finance the acquisition, construction, expansion, reconstruction, replacement, rehabilitation, upgrade and maintenance of any ConventionCenter Facilityas defined in CVMC 3.61.030.” F.For purposes of this Chapter, the provisions of Section 53314.3 of the Mello-Roos Act areamended to read as follows (deletions are shownin strike-throughtext): “In the first fiscal year in which a special tax or charge is levied for any facility or for any services in a community facilities district or a zone within a community facilities district, the legislative body shall include in the levy a sum sufficient to repay to the legislative body the amounts transferred to that district or zone pursuant to Section 53314. The amounts borrowed, with interest, shall be retransferred to the proper fund or funds from the first available receipts from the special levy in that district or zone. Notwithstanding the above provisions, the legislative body may, by a resolution adopted no later than the time of the first levy, extend the repayment of the transferred funds over a period of timenot to exceed three consecutive years, in which eventthe levy and each subsequent levy shall include a sum sufficient to repay the amount specified by the legislative body for the year of the levy.” G.For purposes of this Chapter, the provisions of Section 53314.5 of the Mello-Roos Act areamended to read as follows (deletions areshown in strike-through text): “Pursuant to a resolution adopted by the legislative body, the legislative body may appropriate any of its available moneys to a revolvingfund to be used for the acquisition of real or personal property, engineering services, or the construction of structures or improvements needed in whole or in part to provide one or more of the facilities of a community facilities district. The revolvingfund shall be reimbursed from tax revenues or other moneys available from the facilities district, and no sums shall be disbursed from the fund until the legislative body has, by resolution, established the method by, and termnot exceeding five years within, which the community facilities district is to reimburse the funds. The district shall reimburse the fund for any amount disbursed to the areawithin five years after such disbursement, together with interest as the current rate per annum received on similar types of investments by the legislative body as determined by the local agency’s treasurer.” H.For purposes of this Chapter, the provisions of Section 53314.6 of the Mello-Roos Act areamended to read as follows (deletions areshown in strike-through text): "(a)In connection with the financing of services and facilities pursuant to subdivision (f) of Section 53313 and subdivision (k) of Section 53313.5, the legislative body may establish a revolvingfund to be kept in the treasury of the district. Except as provided in subdivision (b), moneys in the revolvingfund shall be expended solely for the payment of costs with 2019-07-09 Agenda PacketPage 100 of 184 Ordinance Page 10 respect to those services and facilities. The revolvingfund may be funded from time to time with moneys derived from the following: (1)Proceeds from the sale of bonds issued pursuant to Article 5 (commencing with Section 53345), notwithstanding any limitation contained in Section 53345.3. (2)Any taxes or charges authorized under this Chapter. (3)Any other lawful source. (b)Subject to the provisions of any resolution, trust agreement or indenture providing for the issuance of district bonds for the purposes set forth in subdivision (k) of Section 53313.5, the legislative body may withdraw money from the revolvingfund whenever and to the extent that it finds that the amount of money thereinexceeds the amount necessary to accomplish the purposes for which the fund was established. Any moneys withdrawn from the revolvingfund shall be used to redeem bonds of the district issued for the purposes set forth in subdivision (k) of Section 53313.5 or shall be paid to taxpayers in the district in amounts that the legislative body determines.” I.For purposes of this Chapter, the provisions of Section 53314.9 of the Mello-Roos Act areamended to read as follows (deletions areshown in strike-through text): "(a)Notwithstanding Section 53313.5, at any time either before or after the formation of the district, the legislative body may accept advances of funds or work in-kind from any source, including, but not limited to, private person or private entities and may provide, by resolution, for the use of those funds or that work in-kind for any authorized purpose, including, but not limited to, paying any cost incurred by the local agency in creating a district. The legislative body may enter into an agreement, by resolution, with the person or entity advancing the funds or work in- kind, to repay all or a portion of the funds advanced, or to reimburse the person or entity for the value, or cost, whichever is less, of the work in- kind, as determined by the legislative body, with or without interest, under the following conditions: (1)The proposal to repay the funds or the value of cost of the work in- kind, whichever is less, is included both in the resolution of intention to establish a district adopted pursuant to Section 53321 and in the resolution of formation to establish the district adopted pursuant to Section 53325.1, or in the resolution of consideration to alter the types of public facilities and services provided within an established districted adopted pursuant to Section 53334. 2019-07-09 Agenda PacketPage 101 of 184 Ordinance Page 11 (2)Any proposed special tax or change in a special tax is approved by the qualified electors of the district pursuant to this chapter. Any agreement shall specify that if the qualified electors of the district do not approve the proposed special tax or change in a special tax, the local agency shall return any funds which have not been committed for any authorized purposes by the time of the election to the person or entity advancing the funds. (3)(1)Any work in-kind accepted pursuant to this section shall have been performed or constructed as if the work had been performed or constructed under the direction and supervision, or under the authority of, the localagency. (b)The agreement shall not constitute a debt or liability of the local agency.” J.For purposes of this Chapter, the provisions of clause (a) of Section 53321 of the Mello-Roos Act areamended to read as follows (deletions are shown in strike- through text): "(a)State that a community facilities district is proposed to be established under the terms of this chapter and describe the boundaries of the territory proposed for inclusion in the district, which may be accomplished by reference to a map on file in the office of the clerk, showing the proposed community facilities district. The boundaries of the territory proposed for inclusion in the district shall include the entirety of any parcel subject to taxation by the proposed district.” K.For purposes of this Chapter, the provisions of Section 53324 of the Mello-Roos Act areamended to read as follows (additions are shown in italics text and deletions are shown in strike-through text): "(a)If the registered voters, or six registered voters, whichever is more, residing within the territory proposedto be included in the district, orthe owners of one-half or more of the area of the land in the territory proposed to be included in the district and not exempt from the special tax, file written protests against the establishment of the district, and protests are not withdrawn so as to reduce the value of the protests to less than a majority,suchno furtherproceedings to create the specified community facilities district or to authorize the specified special tax shall be abandonedtaken for a period ofone year from the date of the decision of the legislative body.Notwithstanding the abandonment of the proceedings to create such specified community facilities district or to authorize such special tax pursuant to this Section 53324(a), new proceedings to create such specified community facilities district or to authorize such special tax may be initiated at any time thereafter. 2019-07-09 Agenda PacketPage 102 of 184 Ordinance Page 12 If the majority protests ofthe registered voters or ofthe landowners are only against the furnishing of a specified type or types of facilities or services within the district, or against levying a specified special tax, those types of facilities or services or the specified special tax shall be eliminated from the resolution of formation. Notwithstanding the elimination of such types of facilities or services or such specified special tax from the resolution of formation, new proceedings to authorize the furnishing of such types of facilities or services within the district or to authorize the levy of such specified special taxmay be initiated pursuant to Article 3 of the Mello-Roos Act, as amended by this Chapter 3.61, at any time thereafter. (b)This section does not apply to the formation of a district pursuant to Section 53328.1.” L.For purposes of this Chapter, the provisions of Section 53337 of the Mello-Roos Act areamended to read as follows (additions are shown in italics text and deletions are shown in strike-through text): “If 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the district, orthe owners of one-half or more of the area of the land in the territory included in the district and not exempt from the special tax file written protests against changing the public facilities or services financed by the district, those changes in the facilities or services shall be eliminated from the resolution ordering changes in the types of public facilities or services to be financed and the changes shall not be included in a resolution for a period of one year from the date of the decision of the legislative body on the hearing. Notwithstanding the elimination of such changes in the public facilities and services from the resolution ordering changes in the types of public facilities and services to be financed, new proceedings to consider ordering such changes in the types of public facilities and services may be initiated at any time thereafter. If 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the district, orthe owners of one-half or more of the area of the land in the territory included in the district and not exempt from the special tax file written protests against the levying of any additional special taxes within the district, or against a proposed alteration to an existing special tax within the district, those changes shall be eliminated from the resolution and the changes shall not be included in a resolution for a period of one year from the date of the decision of the legislative body on the hearing. Notwithstanding the elimination of such changes from the resolution, new proceedings to consider the levying of such additional special taxes or such alteration tosuch existing special tax may be initiated at any time thereafter.” M.For purposes of this Chapter, the provisions of Section 53339.6 ofthe Mello-Roos Act areamended to read as follows (additions are shown in italics text and deletions are shown in strike-through text): 2019-07-09 Agenda PacketPage 103 of 184 Ordinance Page 13 “If 50 percent or more of the registered voters, or six registered voters, whichever is more, residing within the existing community facilities district, or if 50 percent or more of the registered voters or six registered voters, whichever is more, residing within the territory proposed for annexation or proposed to be annexed in the future, or if the owners of one-half or more of the area of land in the territory included in the existing district and not exempt from special tax, or if the owners of one-half ormore of the area of land in the territory proposed to be annexed or proposed to be annexed in the future and not exempt from the special tax, file written protests against the proposed annexation of territory to the existing community facilities district or the proposed addition of territory to the existing community facilities district in the future, and protests are not withdrawn so as to reduce the protests to less than a majority, theno further proceedings to annex the same territory, or to authorize the same territory to be annexed in the future, shall beabandonedundertaken for a period of one year from the date of decision of the legislative body on the issues discussed at the hearing.Notwithstanding the abandonment of the proceedings to annex the same territory or to authorize the sameterritory to be annexed in the future to the existing community facilities district, new proceedings to authorize the annexation of the sameterritory or to authorize the sameterritory to be annexed in the future to the existing community facilities districtmay be initiated at any time thereafter.” N.For purposes of this Chapter, the provisions of Section 53345.3 are amended to read as follows (additions are shown in italics text and deletions are shown in strike-through text): “The amount of the proposed bonded indebtedness may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purpose for which the proposed debt is to be incurred, including, but not limited to, the estimated costs of construction or acquisition of buildings, or both; acquisition of land, rights-of-way, water, sewer, or other capacity or connection fees; lease payments for school facilities,satisfaction of contractual obligations relating to expenses or the advancement of funds for expenses existing at the time the bonds are issued pursuant to this chapter; architectural, engineering, inspection, legal, fiscal, and financial consultant fees; bond and other reserve funds; discount fees; interest on any bonds of the district estimated to be due and payable within twoyearssuch period of time afterofissuance of the bondsas shall be established by the City Council; election costs; and all costs of issuance of the bonds, including, but not limited to, fees for bond counsel, costs of obtaining credit ratings, bond insurance premiums, fees for letters of credit, and other credit enhancement costs, and printing costs. Bonds may not be issued pursuant to this chapter to fund any of the services specified in Section 53313or in Chapter 3.60 of the CVMC; however, bonds may be issued to fund capital facilities to be used in providing these services.” O.For purposes of this Chapter, the provisions of Section 53359.5(b)(13) of the Mello-Roos Act shall apply only to special taxes levied on the property tax rolls pursuant to CVMC 3.61.130. For all other special taxes, instead of the 2019-07-09 Agenda PacketPage 104 of 184 Ordinance Page 14 information required by Section 53359.5(b)(13)of the Mello-Roos Act, the City shall include in the report the same information with respect to the special taxes that it normally collects and reports regarding the City’s transient occupancy taxes. 3.61.080Authorized expenditures. A.Revenues from any special tax imposed under this Chaptermay be spent on the following: debt service; lease payments; cost of issuance of securities issued for the purpose of financing or refinancing the ConventionCenter Facilityand any other facilities the District is authorized to finance; replenishment or funding of reserve funds established in connection with the issuance of debt (as defined in the Mello-Roos Act), administrative costs of the District; prepayment of such securities; direct costs of planning, engineering, design, site preparation, and acquisition, construction, expansion, reconstruction, replacement, rehabilitation and upgrade of the ConventionCenter Facilityand any other facilities the District is authorized finance; ongoing capital repairs and maintenance of the Convention Center Facilityand any other facilities the Districtis authorized to finance; the costs of providing Services and maintenance as authorized by the District and all incidental and administrative costs authorized by the Mello-Roos Actor by the Districtunder this Chapter. Revenuesfrom any such special tax received by the District in any fiscal year may, to the extent necessary, be accumulated and applied to the payment of authorized expenditures incurred in a future fiscal year. 3.61.090Hearing–Continuances. All hearings called for under the Mello-Roos Act shall be required by this Chapter, except that they may be continued from time to time without further notice, but shall be completed within two years of the original hearing date. For purposes of this Chapter, the mailing of notices as provided in Sections 53322.4 and 53346 and any other similar provisions of the Mello-Roos Act shall be made to the Landowners of properties that would not be exempt from the special tax if the proposed special tax were levied as proposedin the resolution of intention. 3.61.100Election; Voter qualifications; Ballots. All election procedures set forth in the Mello-Roos Act shall apply to this Chapter, with the following exceptions: A.The qualified electors shall in all cases be the Landowners. B.The City Clerk shall in all cases be the election official. C.The Landowner-voters shall be those meeting the definition of Landowner as defined in CVMC 3.61.030 as of the close of the public hearing onthe establishment of the District unless the City Clerk is informed, by reliable evidence, of a change in ownership after that time and at least 24 hours before the 2019-07-09 Agenda PacketPage 105 of 184 Ordinance Page 15 deadline to submit ballots. In that event, at the request of the new Landowner , the City Clerk shall prepare a new ballot and deliver it to the new Landowner. The City Clerk shall also, in that event, accept and include in the canvass of the election anyballot submitted by the new Landowner and exclude anyballot submitted bythe former Landowner. D.Since Landowner-voters are entitledto a secret ballot, and since ballots are required to contain the names of each Landowner and the number of votes each is entitled to cast, the City Clerk shall protect the confidentiality of the ballots. No person, other than those among the staff and consultants of the City who require access for the purposes of counting and canvassing the ballots, may have access to the ballots at any time, unless by order of a court of competent jurisdiction. The legislative body may authorize disclosure of ballots to ensure transparency of the election but only if ballots are redacted to conceal the identity of the Landowner- voters who cast such ballots. 3.61.110Application of special tax. Any special tax imposed under this Chapteris imposed by the District and notthe City of Chula Vista. Such special tax shall be levied by the District, in any year, only on a parcel or a possessory interest in a parcelwithin the District for the use of suchproperty during such year as a Hotel or Campsite. 3.61.120Special tax collected with transient occupancy tax. All special taxes imposed under this Chaptershall be due and remitted with the Operator’s payment of the transient occupancy taxes as set forth in chapter3.40 of the CVMC. If aLandowner is not anOperator, the Landowner shall cause the Operator to remit the special taxes imposed pursuant to this Chapterwith the Operator’s payment of the transient occupancy tax. Unlike chapter3.40, however, the special tax is not imposed on the Transient,but on the parcel orpossessory interestin a parcelcontaining the Hotel or Campsite. The Operator may, but is not required to, passthe special tax through to Transients, and collect it with, Rent. Subject to and as modified by the foregoing, the provisions of sections 3.40.040, 3.40.050, 3.40.070, 3.40.080, 3.40.090, 3.40.100, 3.40.110, 3.40.120, and 3.40.130 shall apply to any special tax levied pursuant to this Chapter. Despite the method of collection and administration, the special tax imposed by the District under this Chapter is distinct from the City’s transient occupancy tax and may be enforced, in the event of nonpayment, as provided in the Mello-Roos Act, including through a judicial foreclosure. 3.61.130Optional collection of delinquent special taxes on secured property tax roll. Any special taxes delinquent as of July 1 of any fiscal year, together with any penalties and interest accrued as of that date, may, at the option of the City Council, acting as the legislative body of the District, be placed on the secured property tax roll in that fiscal 2019-07-09 Agenda PacketPage 106 of 184 Ordinance Page 16 yearand be levied on the parcel for which such special taxes are delinquent, where it shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for ad valorem taxes. 3.61.140Compliance with this Chapter. Any proceedings taken, special tax levied or bonds issued pursuant to this Chaptershall not be held invalid for failure to comply with this Chapter. Section III.Severability If any portion of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid, unenforceable or unconstitutional, by a court of competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance, or theirapplication to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section IV. Construction The City Council of the City of Chula Vista intends this Ordinance to supplement, not to duplicate or contradict, applicable state and federal law and this Ordinance shall be construed in light of that intent. Section V. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section VI. Publication The City Clerk shall certify to the passage and adoption ofthis Ordinance and shall cause the same to be published or posted according to law. Presented byApproved as to form by _________________________________________________________________________ Kelly G. Broughton, FASLAGlen R. Googins Director ofDevelopment ServicesCity Attorney 2019-07-09 Agenda PacketPage 107 of 184 File ID:19-0260 TITLE A. RESOLUTION NO. 2019-___ OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA LEVYING SPECIAL TAXES TO BE COLLECTED TO PAY THE COSTS OF FACILITIES AND SERVICES FOR COMMUNITY FACILITIES DISTRICTS 97-1, 97-2, 97-3, 98-1, 98-2, 98-3, 99-1, 99-2, 2000-1, 2001-1, 2001-2, 07-I, 08-I, 08-M, 09-M, 11-M, 12-I, 12-M, 13-I, 13-M, 14-M, 14-M2, 16-I, 17-I, 18-M AND 19-M WITHIN THE CITY OF CHULA VISTA AND DESIGNATING THE DIRECTOR OF FINANCE/TREASURER TO FILE A LIST OF TAXES TO BE LEVIED ON EACH PARCEL WITH THE COUNTY AUDITOR EACH YEAR B. RESOLUTION NO. 2019-___ OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA LEVYING SPECIAL TAXES TO BE COLLECTED TO PAY THE COSTS OF FACILITIES AND SERVICES FOR COMMUNITY FACILITIES DISTRICTS 06-I AND 07-M, WITHIN THE CITY OF CHULA VISTA AND DESIGNATING THE DIRECTOR OF FINANCE/TREASURER TO FILE A LIST OF TAXES TO BE LEVIED ON EACH PARCEL WITH THE COUNTY AUDITOR EACH YEAR Council adopt the resolutions. SUMMARY Twenty-eight (28) Community Facilities Districts (CFDs) were formed during Fiscal Years 1998-2019.Each year, a special tax must be levied in each of the districts to repay bondholders, or to fund the maintenance of open space preserve areas and other public facilities.This item authorizes the Director of Finance to oversee the annual levy of special taxes, at the same or at a lower rate authorized by the applicable ordinance for CFDs 97-1, 97-2, 97-3, 98-1, 98-2, 98-3, 99-1, 99-2, 2000-1, 2001-1, 2001-2, 06-I, 07-I, 07-M, 08-M, 08-I, 09- M, 11-M, 12-M, 12-I, 13-M, 13-I, 14-M, 14-M2, 16-I, 17-I, 18-M and 19-M for Fiscal Year 2019-20, and subsequent Fiscal Years in conformance with provisions ofthe California Government Code. This activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3), no environmental review is required. Not applicable. v.001 Page|1 2019-07-09 Agenda PacketPage 108 of 184 DISCUSSION In January 1998, City Council adopted the .Thisdocument allowed the use of CFDs as a public financing mechanism for: Acquisition and/or construction of public improvements and facilities Financing of authorized public services; and To repay bonded indebtedness or other related expenses. From Fiscal Year 1998-99 through 2019-20, twenty-eight (28) CFDs were formed in the Otay Ranch, Sunbow II, San Miguel Ranch, Eastlake, and Rolling Hills Ranch areas, as detailed in Exhibit 1.Each CFD has one of two primary purposes: 1) Infrastructure CFD -fund the acquisition or construction of infrastructure, or 2) Maintenance CFD -fund ongoing maintenance services of public facilities. Annually, the CFDs’ lists of taxable parcels are levied special taxes.The special taxes for the Infrastructure CFDs fund the repayment of limited liability bonds.This repayment schedule is set at the time the bonds are issued by the CFD’s debt service schedule.The special taxes for the Maintenance CFDs pay for the maintenance efforts of open space areas and other public facilities, such as parks.The Maintenance CFDs are included within the City’s annual Operating Budget. Given that the Infrastructure CFDs debt service schedules are set at the time of bond issuance, and Maintenance CFDs are already included in the annual budget process, Staff is recommending this item pursuant to the California Government Code, which provides City Council the option to authorize a City Official, in this case the Director of Finance/Treasurer, to file the lists of taxable parcels with the County Auditor-Controller for Fiscal Year 2019-20, and subsequent fiscal years.The rates of the special taxes that will be levied on taxable parcels within each CFD will not exceed the rates of the special taxes that are authorized to belevied within each District by the applicable ordinance for each respective CFD.This modification will remove the current duplication of efforts within the budgeting process. Maximum Rate & Actual Rate The City makes the distinction between the maximum special tax rate and the amount that the City may collect against the special tax rate (i.e., the actual rate).Each year, the maximum special taxes are calculated via the product of the prior fiscal year’s maximum special tax rates and an inflation factor as defined in each CFD’s special tax formula. The actual rate, on the other hand, is the amount collected from property owners and is equal to, or lower than, the maximum special tax rate.The actual rate is based on the budget, the reserve requirement, fund balances, earned interest, and prior years’ savings. Staff has reviewed the property holdings of the City Council and has found that potential conflicts exist; in that a member has property holdings within 500 feet of the Community Facilities Districts listed below by City Council member.Consequently, pursuant to California Code of Regulations Title 2, sections 18700 and Page|2 2019-07-09 Agenda PacketPage 109 of 184 18702.2(a)(11), this item presents a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.) for the members identified below: Councilmember McCann and Councilmember Padilla -For CFD 06-I and CFD 07-M, which are the subject of Resolution B of this action. 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. Infrastructure CFDs The Fiscal Year 2019-20 scheduled debt service for Infrastructure CFDs totals $12,527,326.Projected special tax revenues will be sufficient to cover these amounts with no impact to the General Fund. Maintenance CFDs The full cost of providing maintenanceservices and funding reserves in the Maintenance CFDs totals $14,012,769 for Fiscal Year 2019-20.This entire amount is recovered through the CFDs' special tax levies and reserves, resulting in no net impact to the General Fund. The ongoing costs of funding the scheduled debt service payments and providing maintenance services will be offset through the CFDs' special tax levies and reserves of each CFD. With Staff continuing to carefully monitor expenses, adjust budgets annually as needed and sustaining sufficient reserves, the CFDs will continue to be able to repay bondholders and fund the required maintenance within the City’s public facilities. ATTACHMENTS Attachment 1 –CFD’s within the City of Chula Vista Page|3 2019-07-09 Agenda PacketPage 110 of 184 RESOLUTIONNO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA LEVYING SPECIAL TAXES TO BE COLLECTED TO PAY THE COSTS OF FACILITIES AND SERVICES FOR COMMUNITY FACILITIES DISTRICTS 97-1, 97-2, 97-3, 98-1, 98-2, 98-3, 99-1, 99-2, 2000-1, 2001-1, 2001-2, 07-I, 08-I, 08-M, 09-M, 11-M, 12-I, 12-M, 13-I, 13-M, 14-M,14-M2,16-I, 17-I, 18-M AND 19-M WITHIN THE CITY OF CHULA VISTA AND DESIGNATING THE DIRECTOR OF FINANCE/TREASURER TO FILE A LIST OF TAXES TO BE LEVIED ON EACH PARCEL WITH THE COUNTY AUDITOR EACH YEAR WHEREAS, the following Community Facilities Districts (CFD)s were previously established within the City of Chula Vista (“City”) in accordance with the “The Mello-Roos Community Facilities Act of 1982” (“The Act”): 97-1, 97-2, 97-3, 98-1, 98-2, 98-3, 99-1, 99-2, 2000-1, 2001-1, 2001-2, 07-I, 08-I, 08-M, 09-M, 11-M, 12-I, 12-M, 13-I, 13-M, 14-M,14-M2 16-I, 17-I, 18-M, 19-M; and WHEREAS, it is necessary that the City Council (the “City Council”) of the City of Chula Vista (the “City”) levy special taxes pursuant to Section 53340 of the California Government Code (“Section 53340”) for the community facilities districts within the City listed on Exhibit A attached hereto (each a “Community Facilities District” and collectively, the “Community FacilitiesDistricts”); WHEREAS, pursuant to Section 53340(b), the City Council may by resolution provide for the levy of special taxes in the current and future tax years on parcels of taxable property within each of the Community Facilities Districts at the same rate or at a lower rate provided by the applicable ordinance levying special taxes within each Community Facilities District if such resolution is adopted and a certified listof all parcels subject to the special taxes being levied is filed with the San Diego County Auditor and Controller (the “County Auditor”) on or before the 10th day of August of each tax year, or later with prior consent of the County Auditor;and WHEREAS, Section 53340 permits the City Council to authorize a City official to file the certified list with the County Auditor, and the City Council desires to authorize the City’s Director of Finance/Treasurer to do so for the 2019-20tax year, and all subsequent tax years;and WHEREAS, the rates of the special taxes that will be levied on taxable parcels within each Community Facilities District will not exceed the rates of the special taxes that are authorized to be levied within each District by the applicable ordinance for each respective Community Facilities District. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, acting as the legislative body of Community Facilities Districts 97-1, 97-2, 97-3, 98-1, 98- 2, 98-3, 99-1, 99-2, 2000-1, 2001-1, 2001-2, 07-I, 08-I, 08-M, 09-M, 11-M, 12-I, 12-M,13-I, 13-M, 14-M,14-M2,16-I, 17-I, 18-M, 19-M, that: SECTION 1. The above recitals are all true and correct. 1 09960.00000\\29758459.2 2019-07-09 Agenda PacketPage 111 of 184 SECTION2. Special taxes shall be and are hereby authorized to be levied for the 2019- 20tax year and in all future tax years on all taxable parcels of real property within each of the Community Facilities Districts listed in Exhibit A, and shall not exceed the rates of the special taxes that are authorized to be levied within each Community Facilities District, as provided by the ordinance levying special taxes within such Community Facilities District. Pursuant to Section 53340 such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes. SECTION 3. The Director of Finance/Treasurer of the City is designated to file a certified list of all parcels within each Community Facilities District subject to the special taxes, including the amount of the special tax to be levied on each parcel for the applicable tax year, with the County Auditor on or before the 10th day of August of each tax year, or later with the prior consent of the County Auditor, together with a request that the special taxes be collected on the tax bills for such parcels along with the ordinary ad valoremproperty taxes to be levied on and collected from the owners of suchparcels. SECTION 4. City staff and consultants are hereby authorized and directed to take all such necessary and further actions to carry out the directives and requirements of thisResolution. SECTION 5. This Resolution shall become effective upon its adoption. Presented byApproved as to formby David Bilby,MSBA,CPFOGlen R.Googins DirectorofFinance/TreasurerCityAttorney 2 09960.00000\\29758459.2 2019-07-09 Agenda PacketPage 112 of 184 EXHIBIT A LIST OF COMMUNITY FACILITIES DISTRICTS Community Facilities District No.District/Area Name 07-IOtay Ranch Village 11 08-IOtay Ranch Village 6 2001-2McMillin Otay Ranch Village 6 07-IOtay Ranch Village 11 -2nd Bond Sale 2001-1San Miguel Ranch 12-IMcMillin Otay Ranch Village 7 13-IOtay Ranch Village 7 & Village 2 97-3Otay Ranch McMillin Acquisition 99-1 A&BOtay Ranch SPA I 2000-1Sunbow II Villages 5 -10 2001-1San Miguel Ranch 97-1Otay Ranch (Area A) 97-1Otay Ranch (Area B) 97-2OtayRanch Preserve 98-1Otay Ranch Vill 1, 2, 6, 7, 12 (Interim) 98-2Otay Ranch Village 6 & 7 (Interim) 98-3Sunbow II (OSD #35) 99-2Otay Ranch Village 1 West 08-M (Area 1)McMillin Otay Ranch Village 6 08-M (Area 2)Otay Ranch Co Village 6 09-MOtayRanch Village 11 -Brookfield Shea 11-MRolling Hills Ranch Neighborhoods 9 -12 12-MA (Area 1)McMillin Otay Ranch Village 7 12-MB (Area 2)Otay Ranch Village 7 13-MOtay Ranch Village 2 14-MOtay Ranch A -Eastern Urban Center Millenia OtayRanch B -Eastern Urban Center Millenia 14-M Parks 14-M2Otay Ranch –Eastern Urban Center Millenia 16-IMillenia 17-IWestern Chula Vista 18-MOtay Ranch Village 3 19-MFreeway Commercial 2 A-1 09960.00000\\29758459.2 2019-07-09 Agenda PacketPage 113 of 184 RESOLUTIONNO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA LEVYING SPECIAL TAXES TO BE COLLECTED TO PAY THE COSTS OF FACILITIES AND SERVICES FOR COMMUNITY FACILITIES DISTRICTS 06-I AND 07-M WITHIN THE CITY OF CHULA VISTA AND DESIGNATING THE DIRECTOR OF FINANCE/TREASURER TO FILE A LIST OF TAXES TO BE LEVIED ON EACH PARCEL WITH THE COUNTY AUDITOR EACHYEAR WHEREAS, the following Community Facilities Districts (CFD)s were previously established within the City of Chula Vista (“City”) in accordance with the “The Mello-Roos Community Facilities Act of 1982” (“The Act”): 06-I, 07-M; and WHEREAS, it is necessary that the City Council (the “City Council”) of the City of ChulaVista (the “City”) levy special taxes pursuant to Section 53340 of the California Government Code (“Section 53340”) for the community facilities districts within the City listed on Exhibit A attached hereto (each a “Community Facilities District” and collectively, the “Community FacilitiesDistricts”); WHEREAS, pursuant to Section 53340(b), the City Council may by resolution provide for the levy of special taxes in the current and future tax years on parcels of taxable property within each of the Community Facilities Districts at the same rate or at a lower rate provided by the applicable ordinance levying special taxes within each Community Facilities District if such resolution is adopted and a certified list of all parcels subject to the special taxes being levied is filed with the San Diego County Auditor and Controller (the “County Auditor”) on or before the 10th day of August of each tax year, or later with prior consent of the County Auditor;and WHEREAS, Section 53340 permits the City Council to authorize a City official to file the certified list with the County Auditor, and the City Council desires to authorize the City’s Director of Finance/Treasurer to do so for the 2019-20tax year, and all subsequent tax years;and WHEREAS, the rates of thespecial taxes that will be levied on taxable parcels within each Community Facilities District will not exceed the rates of the special taxes that are authorized to be levied within each District by the applicable ordinance for each respective Community Facilities District. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, acting as the legislative body of Community Facilities Districts 06-I, 07-M,that: SECTION 1. The above recitals are all true and correct. SECTION 2. Special taxes shall be and are hereby authorized to be levied for the 2019- 20tax year and in all future tax years on all taxable parcels of real property within each of the Community Facilities Districts listed in Exhibit A, and shall not exceed the rates ofthe special taxes that are authorized to be levied within each Community Facilities District, as provided by 1 09960.00000\\29758459.2 2019-07-09 Agenda PacketPage 114 of 184 the ordinance levying special taxes within such Community Facilities District. Pursuant to Section 53340 such special taxes shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penaltiesand the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes. SECTION 3. The Director of Finance/Treasurer of the City is designated to file a certified list of all parcels within each Community Facilities District subject to the special taxes, including the amount of the special tax to be levied on each parcel for the applicable tax year, with the County Auditor on or before the 10th day of August of each tax year, or later with the prior consent of the CountyAuditor, together with a request that the special taxes be collected on the tax bills for such parcels along with the ordinary ad valorem property taxes to be levied on and collected from the owners of such parcels. SECTION 4. City staff and consultants are hereby authorized and directed to take all such necessary and further actions to carry out the directives and requirements of thisResolution. SECTION 5. This Resolution shall become effective upon its adoption. Presented byApproved as to formby David Bilby,MSBA,CPFOGlen R.Googins DirectorofFinance/TreasurerCityAttorney 2 09960.00000\\29758459.2 2019-07-09 Agenda PacketPage 115 of 184 EXHIBIT A LIST OF COMMUNITY FACILITIES DISTRICTS Community Facilities District No.District/Area Name 06-I (Area A)Eastlake –Woods, Vistas 06-I (Area B)Eastlake –Land Swap 07-M (Area 1)Eastlake –Woods, Vistas 07-M (Area 2)Land Swap Parcel A-1 09960.00000\\29758459.2 2019-07-09 Agenda PacketPage 116 of 184 Page 117 of 184 Purpose on of public facilities for acquisition of public facilities Bond Issue for acquisitiMaintenance District ct within the City of Chula Vista 6, 7 Interim Open Space maintenance Location Freeway Commercial 2(Planning Area 12) 2019-07-09 Agenda Packet 06-I Eastlake Woods, Vistas and Land Swap Bond Issue for acquisition of public facilities 07-I Otay Ranch Village 11 Bond Issue for acquisition of public facilities 08-I Otay Ranch, Village 6 Bond Issue for acquisition of public facilities 12-I McMillin Otay Ranch, Village 7 Bond Issue for acquisition of public facilities 13-I Otay Ranch, Village 7 Bond Issue for acquisition of public facilities 16-I Millenia Bond Issue for acquisition of public facilities 17-I Western Chula Vista DIF Financing Program CFD 97-1 Otay Ranch SPA 1, Villages 1 and 5 Open Space maintenance 97-2 Otay Ranch Preserve Open Space maintenance 97-3 Otay Ranch McMillin, SPA 1 Bond Issue 98-1 Otay Ranch Villages 1W, 2, 2W, 6, 7, 12 Interim Open Space maintenance 98-2 Otay Ranch McMillin SPA 2, Villages98-3 Sunbow II Open Space maintenance 99-1 Otay Ranch SPA 1, Villages 1, 5, 1W Bond Issue for acquisition of public facilities 99-2 Otay Ranch SPA 1, Village 1W Open Space maintenance 07-M Eastlake Woods, Vistas and Land Swap (Areas 1, 2) Maintenance District 08-M McMillin & Otay Ranch Village 6 (Areas 1, 2) Maintenance District 09-M Otay Ranch Village 11 Maintenance District 11-M Rolling Hills Ranch Maintenance District 12-M McMillin & Otay Ranch, Village 7 Maintenance District 13-M Otay Ranch Village 2 Maintenance District 14-M Otay Ranch (Eastern Urban Center/Millenia) Maintenance District 18-M Otay Ranch Village 3 Maintenance District 19-M 14-M2 Eastern Urban Center/Millenia Maintenance District 2000-1 Sunbow II, Villages 5-10 2001-1 San Miguel Ranch, Areas A and B Bond Issue for acquisition of public facilities 2001-2 McMillin Otay Ranch, Village 6 Bond Issue for acquisition of public facilities Exhibit 1 – Community Facilities Distri File ID: 19-0304 TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A CONSULTANT SERVICES AGREEMENT WITH DELORENZO INTERNATIONALINC.FOR THE DEVELOPMENT OF A SCOPE OF WORK FOR A CITYWIDE SMART IRRIGATION SYSTEM Council adopt the resolution. SUMMARY In January 2019, a request for proposals (RFP) was posted to solicit professional consultant services to develop scope of work, including detailed specifications, for a turnkey smart irrigation controls system for city parks,city mediansother city-owned sites such as the Civic Center and related infrastructure. The proposal does not include an assessment of irrigation systems in the open space districts as most already have smart irrigation systems installed.The resulting deliverables will be used to solicit contractors to implement a Citywide Smart Irrigation system. 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 (ExistingFacilities), Section 15302 Class 2 (Replacement or Reconstruction), Section 15303 class 3 (New Construction or Conversion of Small Structures),Section 15304 Class 4 (Minor Alterations to Land), 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. The Parks and Recreation Commissionmet fora Special Meeting on June 20, 2019 and recommended City Council approve a consultant services agreement with DeLorenzo International Inc. for the development of a scope of work for a Citywide Smart Irrigation System. v.001 Page|1 2019-07-09 Agenda PacketPage 118 of 184 DISCUSSION BACKGROUND City staff operates and maintains 498 acres comprising65 parks. The city’s largest park, Rohr Park, spans nearly 60 acres. There are also other City-owned sites (Civic Center, libraries, medians, and Fire Stations) that are controlled by city-maintained irrigation systems.There are currently 6 different irrigation control systems and many of the irrigation control systems have failed and no longer have communication capability. Some sites currently are controlled via stand-alone irrigation controllers accessible on-site only; some sites currently are controlled by a central monitoring/control system only accessible via a single off-site computer; and some sites are controlled by several cloud-based monitoring/control systems accessible via any device capable of connecting to the internet.The city intends to replace allthe failed irrigation systems utilizing Measure P funding and transitionall irrigation systems to Smart Irrigationsystems capable of being monitored and controlled remotely from any device capable of connecting to the internet. On January 11th, 2019, the city issued a RFPfor a Citywide Smart Irrigation System. The city received two proposals from interested firms. After Citystaffcompleted its review of the proposals, both firms were invited to interview with a team of subject matter experts from the City including representatives from the Community Services Department,Information and Technology Department, Development Services Departmentand Purchasing Divisions. Following the completion of theinterview, the selection committee determined DeLorenzo International Inc. to be the best qualified firm to provide the described services. The consultant selection process was conducted in accordance with Section 2.56.110.C of the City of Chula Vista Municipal Code. CONSULTANTBUSINESS NAMERANK DeLorenzo International1 VDLA2 Page|2 2019-07-09 Agenda PacketPage 119 of 184 Smart irrigation systems tailor watering schedules and run times automatically to meet specific landscape needs. This can be done through utilizing localized weather data and an automatic calculation of evapotranspiration (ET*) and adjust watering schedules daily, or by utilizing sensors to determine the levels of moisture in the soil and adjust watering schedules accordingly. (*ET is the combination of evaporation from the soil surface and transpiration by plant material.) Smart irrigation systems are operational from anywhere a device can connect to the internet. Smart irrigation systems connect to sensors that can detect leaks or excessive flow and automatically control a master valve to shut down and flag the user of the condition, saving up to hundredsof gallons of water for each occurrence. Smart irrigation systems operate by makingdata-informed decisions and can provide detailed reports ofwater use and schedules in relation to weather conditions. PROJECT The scope of work will include an evaluation of the City’s existing irrigation systemsand master irrigation controls inventory;an assessment report; and the development of a citywide smart irrigation system with a priority list of work that needs to be accomplished for the City to implement a smart irrigation systemand replace failed infrastructure. This work will be done in three-phases: Phase 1: Evaluate Existing Irrigation Systems. This will include on-site visits; several tests to review static and dynamic water pressure; controller, pump, master valve and flow sensor assessments. Phase 2: Condition Assessment Report and Water Conservation Estimates. Establish apriorityof projects; review for water efficiency of the system. Phase 3: Bid Ready Performance Specifications. Provide bid ready performance specifications for irrigation systemreplacements,upgrades,and/or improvements needed per priority projects identified in Phase 2. This study isfunded by Measure P from the Park Infrastructure line item in the Infrastructure, Facilities and Equipment Expenditure Plan for a total of$230,000. The initial condition assessment that was attached to the RFP performed by a third-party irrigation consultant provided a cursory evaluation of parks with sports fields but did not include detailed specifications necessary forabiddable scope of work. This information will be used as a starting point for DeLorenzo International in Phase 1. The City of Chula Vista’s smart city strategic action plan improves the lives of Chula Vista residents by enabling the city to provide superior government services, better respond in emergency situations and attract high-quality jobs. The strategic action plan has four goals: Connected City; Responsive City; Transparent City; Innovative City. This study would align with the following Smart City goals: Connected City –by upgrading all irrigation controls to internet-based, data drivenoperations; Transparent City –by using data analytics to support irrigation demands and use; Innovative City –to enhance environmental sustainability by ensuring all irrigation systems have sensors to detect leaks or excessive flow, soil moisture, and weather conditions. Page|3 2019-07-09 Agenda PacketPage 120 of 184 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 Councilmembers do not create a disqualifying real property-related financial conflict of interest under the Political ReformAct (Cal. Gov't Code § 87100, et seq.). Staff is not independently aware, and has not been informed by any City Councilmember, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. This study is fundedby Measure P under CIP PRK0326 from the Park Infrastructure line item in the Infrastructure, Facilities and Equipment Expenditure Plan. The total cost of the study is $230,000. At the completion of this study, City staff will make a presentationto both the Measure P Citizen Oversight Committee and the City Council regarding the recommendations of the Citywide Smart Irrigation System. Once the recommendations are considered and the scope of work is defined for the needsof the smart irrigations systems, the Public Works Department will issue a RFP for the selection of acontractor to perform the work identified in the scope. Thesize of the citywide irrigation project will depend on the funding available. At this time, a total of $2.5millionhas beenappropriatedunder Measure P for replacement of irrigation systems at parks, medians, libraries, Civic Center, and Fire Stations. Measure P - Irrigation System AppropriatedSpent to DateAvailable Sports Courts & Fields$ 2,000,000$ (218,249.71)$ 1,781,750.29 Park Infrastructure$ 500,000$ (2,440.88)$ 497,559.12 Total$ 2,500,000$ (220,690.59)$ 2,279,309.41 Notes: An additional $1.5 million will be allocated to irrigation systems under Measure P. The additional funding will be considered as part of future budget allocations. Funding for the irrigation consultant will be paid out of the Park Infrastructure category. This is in order to fund the Sport Courts and Field irrigations systems due to their high usage. Atthis time, staff cannot provide a reasonably accurate estimate for full implementation of a Smart Irrigation system as there are too many variables that are currently unknown and will need to be vetted by this study. This report does not commit the City to any further expenditures and any future expenditures will be consideredby the City Council. Page|4 2019-07-09 Agenda PacketPage 121 of 184 ATTACHMENTS 1.Two-Party Agreement -DeLorenzo 2.Citywide Smart Irrigation Proposal –DeLorenzo International Inc 3.Citywide Smart Irrigation Proposal Clarifications 05-31-19 Page|5 2019-07-09 Agenda PacketPage 122 of 184 COUNCIL RESOLUTION NO. __________ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A CONSULTANT SERVICES AGREEMENT WITH DELORENZO INTERNATIONAL INC. FOR THE DEVELOPMENT OF A SCOPE OF WORK FOR A CITYWIDE SMART IRRIGATION SYSTEM WHEREAS,City staff operates and maintains 498 acres currently comprising65 parks as well as additional City-owned sites and locations that are controlled by City-maintained irrigation systems; and WHEREAS, there are currently 6 different irrigation control systems and many of the irrigation control systems have failed and no longer have communication capability; and WHEREAS, some sites are currently controlled via stand-alone irrigation controllers accessible on-site only, some sites currently are controlled by a central monitoring and control system only accessible via a single off-site computer, and some sites are controlled by several cloud-based monitoring and control systems accessible via any device capable of connecting to the internet; and WHEREAS, the city intends to replace all the failed irrigation systems utilizing and transition all irrigation systems to Smart Irrigation systemsas funding permits; and WHEREAS, smart irrigation systems are capable of tailoring watering schedules and run times automatically to meet specific landscape needs; are cloud-based and operational from anywhere a device can connect to the internet; will connect to flow sensors that can detect leaks or excessive flow and automatically control a master valve to shut down and flag the user of the condition; operate on data-informed decisions and can report out water use and schedules in relation to weather conditions; and WHEREAS, this project aligns with the following Smart City goals: Connected City, by upgrading all irrigation controls to cloud-based operations; Transparent City, by using data analytics to support irrigation demands and use; Innovative City, to enhance environmental sustainability by ensuring all irrigation systems have flow sensors to detect leaks and excessive flow, and master valves to allow for the controller to automatically shut-off the system, as well as having watering schedules and run times automatically updated to meet specific landscape needs; and WHEREAS, City staff issued a Request for Proposalfor a Citywide smart irrigation system, excluding open space districts; and WHEREAS, the City received 2responses from qualified landscape architect firmsand after a thorough review of pricing, experience and planning, chose DeLorenzo International, Inc. to develop a scope of work for a citywide irrigation smart irrigation system; and 2019-07-09 Agenda PacketPage 123 of 184 Resolution No. _________ Page 2 WHEREAS, the Citywide smart irrigation system consultant is a projectwithinCIP #PRK0326 funded by Measure P from the Park Infrastructure line item in the Infrastructure, Facilities and Equipment Expenditure Plan. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista, that it approves a consultant services agreement with DeLorenzo International, Inc. in the amount of $230,000 for thedevelopment of a scope of work for a citywide smart irrigation system and authorizes the City Manager or designee to execute the agreement in substantially the form presented, with such minor modifications as the City Attorney may require or approve, a copy of which is on file in the office of the City Clerk. Presented byApproved as to form by Tracy LambGlen R. Googins Directorof Community ServicesCity Attorney 2019-07-09 Agenda PacketPage 124 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE CITY OF CHULA VISTA CONSULTANT SERVICES AGREEMENT WITH DELORENZO INTERNATIONAL INC. TO PROVIDE A SCOPE OF WORK FOR A DETAILED TURNKEY CITYWIDE SMART IRRIGATION SYSTEM FOR CITY PARKS AND OTHER CITY OWNED SITES. th This Agreement is entered into effective as of July 9, 2019 by and between the City of Chula and DeLorenzo International Inc., A California Corporation with reference to the following facts: R ECITALS WHEREAS, the City of Chula Vista is seeking to develop a scope of work, including detailed specifications, for a Citywide turnkey smart irrigation control system for its parks, other City-owned sites and related infrastructure. The resulting study and report will be used to solicit a contractor to implement a City-wide smart irrigation system; and WHEREAS, in order to procure these services the City solicited proposals in accordance with Chula Vista Municipal Code section 2.56.080 for professional services and selected the Consultant as the most qualifed; and WHEREAS, Consultant warrants and represents that it is experienced and staffed in a manner such that it can deliver the services required of Consultant to City in accordance with the time frames and the terms and conditions of this Agreement. \[End of Recitals. Next Page Starts Obligatory Provisions.\] City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 125 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE O BLIGATORY P ROVISIONS NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the Parties hereby acknowledge, City and Consultant hereby agree as follows: 1.SERVICES 1.1 Required Services any) described in the attached Exhibit A, incorporated into the Agreement by this reference, within the time frames set forth therein, time being of the essence for this Agreement. The services and/or Deliverables 1.2 Reductions in Scope of Work. City may independently, or upon request from Consultant, from time to time, reduce the Required Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet and confer in good faith for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction. 1.3 Additional Services. Subject to compli Charter, codes, policies, procedures and ordinances governing procurement and purchasing authority, City may request Consultant provide additional and confer in good faith for the purpose of negotiating an amendment to Exhibit A, to add the Additional Services. Unless otherwise agreed, compensation for the Additional Services shall be charged and paid for purposes of this Agreement. 1.4 Standard of Care. Consultant expressly warrants and agrees that any and all Required Services hereunder shall be performed in accordance with the highest standard of care exercised by members of the profession currently practicing under similar conditions and in similar locations. 1.5 No Waiver of Standard of Care. Where approval by City is required, it is understood to be conceptual approval only and does not relieve the Consultant of responsibility for complying with all laws, codes, industry standards, and liability for damages caused by negligent acts, errors, omissions, noncompliance with industry standards, or the willful misconduct of the Consultant or its subcontractors. 1.6 Security for Performance. In the event that Exhibit A Section 4 indicates the need for Consultant to provide additional security for performance of its duties under this Agreement, Consultant shall provide such additional security prior to commencement of its Required Services in the form and on the terms prescribed on Exhibit A, or as otherwise prescribed by the City Attorney. 1.7 Compliance with Laws. In its performance of the Required Services, Consultant shall comply with any and all applicable federal, state and local laws, including the Chula Vista Municipal Code. 1.8 Business License. Prior to commencement of work, Consultant shall obtain a business license from City. 1.9 Subcontractorson and approval a list of any and all subcontractors to be used by Consultant in the performance of the Required Services. Consultant agrees to take appropriate measures necessary to ensure that all subcontractors and City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 126 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE personnel utilized by the Consultant to complete its obligations under this Agreement comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local. In addition, if any subcontractor is expected to fulfill any responsibilities of the Consultant under this Agreement, Consultant Agreement. 1.10 Term. This Agreement shall commence on the earlier to occur of the Effective Date s commencement of the Required Services hereunder, and shall terminate when the Parties have complied with all their obligations hereunder; provided, however, provisions which expressly survive termination shall remain in effect. 2.COMPENSATION 2.1 General. For satisfactory performance of the Required Services, City agrees to compensate Consultant in the amount(s) and on the terms set forth in Exhibit A, Section 4. Standard terms for billing and payment are set forth in this Section 2. 2.2 Detailed Invoicing. Consultant agrees to provide City with a detailed invoice for services performed each month, within thirty (30) days of the end of the month in which the services were performed, unless otherwise specified in Exhibit A. Invoicing shall begin on the first of the month following the Effective Date of the Agreement. All charges must be presented in a line item format with each task separately explained in reasonable detail. Each invoice shall include the current monthly amount being billed, the amount invoiced to date, and the remaining amount available under any approved budget. Consultant must obtain prior written authorization from City for any fees or expenses that exceed the estimated budget. 2.3 Payment to Consultant. Upon receipt of a properly prepared invoice and confirmation that the Required Services detailed in the invoice have been satisfactorily performed, City shall pay Consultant for the invoice amount within thirty (30) days. Payment shall be made in accordance with the terms and conditions set forth in Exhibit A and section 2.4, below subject to a penalty of up to five percent (5%) of the amount invoiced. 2.4 Retention Policy. City shall retain ten percent (10%) of the amount due for Required Services detailed . Upon City review and determination of Project Completion, the holdback amount will be issued to Consultant. 2.5 Reimbursement of Costs-of-pocket costs incurred by Consultant in the performance of the Required Services if negotiated in advance and included in Exhibit A. Unless specifically provided in Exhibit A, Consultant shall be responsible for any and all out-of-pocket costs incurred by Consultant in the performance of the Required Services. 2.6 Exclusions. City shall not be responsible for payment to Consultant for any fees or costs in excess of any agreed upon budget, rate or other maximum amount(s) provided for in Exhibit A. City shall also not be responsible for any cost: (a) incurred prior to the Effective Date; or (b) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of Consultant, its agents, employees, or subcontractors. 2.7 Payment Not Final Approval. Consultant understands and agrees that payment to the Consultant or reimbursement for any Consultant costs related to the performance of Required Services does not constitute a City final decision regarding whether such payment or cost reimbursement is allowable and eligible for payment under this Agreement, nor does it constitute a waiver of any violation by Consultant of the terms of City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 127 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE this Agreement. If City determines that Consultant is not entitled to receive any amount of compensation already paid, City will notify Consultant in writing and Consultant shall promptly return such amount. 3.INSURANCE 3.1 Required Insurance. Consultant must procure and maintain, during the period of performance of Required Services under this Agreement, and for twelve months after completion of Required Services, the policies of insurance described on the attached Exhibit B, incorporated into the Agreement by this reference of this Section. 3.2 Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions relating to the Required Insurance must be disclosed to and approved by City in advance of the commencement of work. 3.3 Standards for Insurers. Required Insurance must be placed with licensed insurers admitted to transact with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Compensation Insurance, insurance issued by the State Compensation Fund is also acceptable. 3.4 Subcontractors. Consultant must include all sub-consultants/sub-contractors as insureds under its policies and/or furnish separate certificates and endorsements demonstrating separate coverage for those not under its policies. Any separate coverage for sub-consultants must also comply with the terms of this Agreement. 3.5 Additional Insureds. City, its officers, officials, employees, agents, and volunteers must be named as additional insureds with respect to any policy of general liability, automobile, or pollution insurance specified using ISO CG 2010 (11/85) or its equivalent; such endorsement must not exclude Products/Completed Operations coverage. 3.6 . insurance as it pertains to the City, its officers, officials, employees, agents, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers is wholly separate from the insurance provided by Consultant and in no way relieves Consultant from its responsibility to provide insurance. 3.7 No Cancellation. No Required Insurance policy may be canceled by either Party during the required return receipt requested. Prior to the effective date of any such cancellation Consultant must procure and put into effect equivalent coverage(s). 3.8 Waiver of Subrogation City for each Required Insurance policy under this Agreement. In addition, Consultant waives any right it may have or may obtain to subrogation for a claim against City. 3.9 Verification of Coverage. Prior to commencement of any work, Consultant shall furnish City with original certificates of insurance and any amendatory endorsements necessary to demonstrate to City that Consultant has obtained the Required Insurance in compliance with the terms of this Agreement. The words City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 128 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE required certificates and endorsements should otherwise be on industry standard forms. The City reserves the right to require, at any time, complete, certified copies of all required insurance policies, including endorsements evidencing the coverage required by these specifications. 3.10 Claims Made Policy Requirements. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are required and are provided on a claims-made form, the following requirements also apply: a. of the work required by this Agreement. b. Insurance must be maintained, and evidence of insurance must be provided, for at least five (5) years after completion of the work required by this Agreement. c. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form d. A copy of the claims reporting requirements must be submitted to the City for review. 3.11 Not a Limitation of Other Obligations. Insurance provisions under this section shall not be construed 3.12 Additional Coverage. To the extent that insurance coverage provided by Consultant maintains higher limits than the minimums appearing in Exhibit B, City requires and shall be entitled to coverage for higher limits maintained. 4.INDEMNIFICATION 4.1. General. To the maximum extent allowed by law, Consultant shall protect, defend, indemnify and hold harmless City, its elected and appointed officers, agents, employees and volunteers (collectively, (including reasonable attorneysity, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions, negligence, or willful misconduct of Consultant, its officials, officers, employees, agents, and contractors, arising out of or in connection with the performance of the Required Services, the results of such performance, or this Agreement. This indemnity provision does not include any claims, damages, liability, costs and expenses arising from the sole negligence or willful misconduct of the Indemnified Parties. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the Indemnified Parties which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. 4.2. Modified Indemnity Where Agreement Involves Design Professional Services. Notwithstanding the forgoing, if the services provided under this Agreement are design professional services, as defined by California Civil Code section 2782.8, as may be amended from time to time, the defense and indemnity obligation under Section 1, above, shall be limited to the extent required by California Civil Code section 2782.8. City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 129 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE 4.3 Costs of Defense and Award proceedings that may be brought or instituted against one or more of the Indemnified Parties. Subject to the limitations in this Section 4, Consultant shall pay and satisfy any judgment, award or decree that may be rendered against one or more of the Indemnified Parties for any and all related legal expenses and costs incurred by any of them. 4.4. Limited or Modified not be limited to insurance proceeds, if any, received by the Indemnified Parties, or by any prior or subsequent under this Section 4 shall in no way 4.5. Enforcement Costs obligations under this Section 4. 4.6 Survival 5.FINANCIAL INTERESTS OF CONSULTANT. 5.1 Form 700 Filing. The California Political Reform Act and the Chula Vista Conflict of Interest Code require certain government officials and consultants performing work for government agencies to publicly disclose certain of their personal assets and income using a Statement of Economic Interests form (Form 700). In order to assure compliance with these requirements, Consultant shall comply with the disclosure requirements identified in the attached Exhibit C, incorporated into the Agreement by this reference. 5.2 Disclosures; Prohibited Interests. Independent of whether Consultant is required to file a Form 700, Consultant warrants and represents that it has disclosed to City any economic interests held by Consultant, or its employees or subcontractors who will be performing the Required Services, in any real property or project which is the subject of this Agreement. Consultant warrants and represents that it has not employed or retained any company or person, other than a bona fide employee or approved subcontractor working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants and represents that it has not paid or agreed to pay any company or person, other than a bona fide employee or approved subcontractor working solely for Consultant, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Consultant further warrants and represents that no officer or employee of City, has any interest, whether contractual, non-contractual, financial or subcontractors. Consultant further agrees to notify City in the event any such interest is discovered whether or not such interest is prohibited by law or this Agreement. For breach or violation of any of these warranties, City shall have the right to rescind this Agreement without liability. 6.REMEDIES 6.1 Termination for Cause. If for any reason whatsoever Consultant shall fail to perform the Required Services under this Agreement, in a proper or timely manner, or if Consultant shall violate any of the other rights and remedies City may have under this Agreement, at law or in equity, City shall have the right to terminate this Agreement by giving five (5) days written notice to Consultant. Such notice shall identify the Default and the Agreement termination date. If Consultant notifies City of its intent to cure such Default prior City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 130 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE may grant Consultant up to ten (10) additional days after the designated termination date to effectuate such cure. In the event of a termination under this Section 6.1, Consultant shall immediately provide City any and 7 below) prepared by Consultant as part of the Required Services. 7 hereof. Consultant may be entitled to compensation for work satisfactorily performed prior to Consultan notice; provided, however, in no event shall such compensation exceed the amount that would have been payable under this Agreement for such work, and any such compensation shall be reduced by any costs incurred or projected to be incurred by City as a result of the Default. 6.2 Termination or Suspension for Convenience of City. City may suspend or terminate this Agreement, or any portion of the Required Services, at any time and for any reason, with or without cause, by giving specific written notice to Consultant of such termination or suspension at least fifteen (15) days prior to the effective date thereof. Upon receipt of such notice, Consultant shall immediately cease all work under the Agreement and promptly deliver all 7 below) to City. Such Work Product shall be City's sole and exclusive property as provided in Section 7 hereof. Consultant shall be entitled to receive just and equitable compensation for this Work Product in an amount equal to the amount due and payable under this Agreement for work satisfactorily performed as of the date of the termination/suspension notice plus any additional remaining Required Services requested or approved by City in advance that would maximize Cit 6.3 Waiver of Claims. In the event City terminates the Agreement in accordance with the terms of this Section, Consultant hereby expressly waives any and all claims for damages or compensation as a result of such termination except as expressly provided in this Section 6. 6.4 Administrative Claims Requirements and Procedures. No suit or arbitration shall be brought arising out of this Agreement against City unless a claim has first been presented in writing and filed with City and acted upon by City in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, as same may be amended, the provisions of which, including such policies and procedures used by City in the implementation of same, are incorporated herein by this reference. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 6.5 Governing Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in San Diego County, State of California. 6.6 Service of Process. Consultant agrees that it is subject to personal jurisdiction in California. If Consultant is a foreign corporation, limited liability company, or partnership that is not registered with the California Secretary of State, Consultant irrevocably consents to service of process on Consultant by first to this Agreement, and that such service shall be effective five days after mailing. 7.OWNERSHIP AND USE OF WORK PRODUCT All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced in whole or in part under this Agreement in connection with the performance City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 131 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE of the Req such Work Product shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express, prior written consent of City. City shall have unrestricted authority to publish, disclose, distribute, and otherwise use, copyright or patent, in whole or in part, any such Work Product, without requiring any permission of Consultant, except as may be limited by the provisions of the Public Records Act or expressly prohibited by other applicable laws. With respect to computer files containing data generated as Work Product, Consultant shall make available to City, upon reasonable written request by City, the necessary functional computer software and hardware for purposes of accessing, compiling, transferring and printing computer files. 8.GENERAL PROVISIONS 8.1 Amendment. This Agreement may be amended, but only in writing signed by both Parties. 8.2 Assignment qualifications and traits. Consultant shall not assign any of its rights or responsibilities under this Agreement, ten consent, which City may grant, condition or deny in its sole discretion. 8.3 Authority. The person(s) executing this Agreement for Consultant warrants and represents that they have the authority to execute same on behalf of Consultant and to bind Consultant to its obligations hereunder without any further action or direction from Consultant or any board, principle or officer thereof. 8.4 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall constitute one Agreement after each Party has signed such a counterpart. 8.5 Entire Agreement. This Agreement together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire Agreement between the Parties with respect to the subject matter contained herein. All exhibits referenced herein shall be attached hereto and are incorporated herein by reference. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 8.6 Record Retention. During the course of the Agreement and for three (3) years following completion of the Required Services, Consultant agrees to maintain, intact and readily accessible, all data, documents, reports, records, contracts, and supporting materials relating to the performance of the Agreement, including accounting for costs and expenses charged to City, including such records in the possession of sub- contractors/sub-consultants. 8.7 Further Assurances. The Parties agree to perform such further acts and to execute and deliver such additional documents and instruments as may be reasonably required in order to carry out the provisions of this Agreement and the intentions of the Parties. 8.8 Independent Contractor. Consultant is and shall at all times remain as to City a wholly independent contractor. Neither City nor any of its officers, employees, agents or volunteers shall have control over the employees of City, and none of them shall be entitled to any benefits to which City employees are entitled, including but not limited to, overtime, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Furthermore, City will not withhold state or federal income tax, social security tax or City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 132 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE any other payroll tax with respect to any Consultant Related Individuals; instead, Consultant shall be solely responsible for the payment of same and shall hold the City harmless with respect to same. Consultant shall not at any time or in any manner represent that it or any of its Consultant Related Individuals are employees or agents of City. Consultant shall not incur or have the power to incur any debt, obligation or liability whatsoever against City, or bind City in any manner. 8.9 Notices. All notices, demands or requests provided for or permitted to be given pursuant to this Agreement must be in writing. All notices, demands and requests to be sent to any Party shall be deemed to have been properly given or served if personally served or deposited in the United States mail, addressed to such Party, postage prepaid, registered or certified, with return receipt requested, at the addresses identified in this Agreement at the places of business for each of the designated Parties as indicated in Exhibit A, or otherwise provided in writing. (End of page. Next page is signature page.) City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 133 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE SIGNATURE PAGE CONSULTANT SERVICES AGREEMENT IN WITNESS WHEREOF, by executing this Agreement where indicated below, City and Consultant agree that they have read and understood all terms and conditions of the Agreement, that they fully agree and consent to bound by same, and that they are freely entering into this Agreement as of the Effective Date. DELORENZO INTERNATIONAL INC. CITY OF CHULA VISTA BY:________________________________ BY: ________________________________ NICHOLAS DELORENZO GARY HALBERT PRESIDENT CITY MANAGER APPROVED AS TO FORM BY: ________________________________ Glen R. Googins City Attorney City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 134 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE EXHIBIT A SCOPE OF WORK AND PAYMENT TERMS 1.Contact People for Contract Administration and Legal Notice A. City Contract Administration: Tracy Lamb , Director Community Services 276 Fourth Ave, Chula Vista, CA 91910 (619) 585-5618 tlamb@chulavistaca.gov For Legal Notice Copy to: City of Chula Vista City Attorney 276 Fourth Avenue, Chula Vista, CA 91910 619-691-5037 CityAttorney@chulavistaca.gov B. Consultant Contract Administration: Nicholas DeLorenzo DELORENZO INTERNATIONAL INC. 3990 Old Town Ave. Suite A-204, San Diego, CA 92110 (619) 295-5115 X 277 nicholas@delorenzo-int.com For Legal Notice Copy to: Joseph A. Contreras Chief Executive Officer 3990 Old Town Ave. Suit A-204 San Diego, CA 92110 (619) 295-5115 X 226 jcontreras@delorenzo-int.com 2.Required Services A. General Description: Evaluate existing irrigation systems citywide and develop a prioritized scope of work with detailed B. Detailed Description: P Description Deliverables 1 Evaluate Existing Irrigation Systems: Site assessments scheduled and Assess citywide systems and record the data to completed with condition assessment include site information, all pertinent system report submitted to City. components, a Google Earth image with City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 135 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE controller locations, and an area for notes, comments, and final recommendations. 2 Condition Assessment Report and Water Site assessments scheduled and Conservation Estimates: completed with condition assessment As part of the condition assessment report, City report submitted to City. will be provided water efficiency and sustainability analysis for the priority projects identified in this phase including estimating any water savings, if any, that would result from the upgrades identified in Phase 1. 3 Create Bid ready performance specification: Provide specifications for system Provide specifications for irrigation system upgrades and improvements with a upgrades and improvements for the priority priority on timing of project rollout projects identified in Phase 2. 4 Three Public Meetings: Meetings scheduled and completed, Consultant will attend three public meetings to and comments/questions have been present and discuss their findings. answered and/or resolved. 5 Evaluate Pumps and Develop Pump Bid-Ready Bid-ready performance specifications Performance Specifications. completed and submitted to City. 3.Term: In accordance with Section 1.10 of this Agreement, the term of this Agreement shall begin July 9, 2019 and end on January 31, 2020 for completion of all Required Services. 4. Compensation: A. Form of Compensation Fixed Fee Paid in Increments. For the completion of each Deliverable of the Required Services, as identified in section 2.B., above, City shall pay the fixed fee associated with each Deliverable, in the amounts set forth below: Month Deliverable Amount July Phase 1 ($134,000 x 20%) $30,400 Phase 5 ($18,000 x 20%) August Phase 1 ($134,000 x 30%) $45,600 Phase 5 ($18,000 x 30%) September Phase 1 ($134,000 x 30%) $45,600 Phase 5 ($18,000 x 30%) October Phase 1 ($134,000 x 15%) $47,000 Phase 2 ($23,000 x 40%) Phase 3 ($50,000 x 30%) Phase 5 ($18,000 x 15%) November Phase 1 ($134,000 x 5%) $36,750 City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 136 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE Phase 2 ($23,000 x 55%) Phase 3 ($50,000 x 30%) Phase 4 ($5,000 x 30%) Phase 5 ($18,000 x 5%) December Phase 2 ($23,000 x 5%) $17,650 Phase 3 ($50,000 x 30%) Phase 4 ($5,000 x 30%) January Phase 3 ($50,000 x 10%) $7,000 Phase 4 ($5,000 x 40%) B. Reimbursement of Costs None, the compensation includes all costs Notwithstanding the foregoing, the maximum amount to be paid to the Consultant for services performed through January 31, 2020 shall not exceed $230,000. 5.Special Provisions: Permitted Sub-Consultants: Southwestern Community College; Blue Watchdog Conservation; California Landscape Technologies; Green Product Sales City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 137 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE EXHIBIT B INSURANCE REQUIREMENTS Consultant shall adhere to all terms and conditions of Section 3 of the Agreement and agrees to provide the following types and minimum amounts of insurance, as indicated by checking the applicable boxes (x). Type of Insurance Minimum Amount Form General Liability: $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 injury Liability insurance with a general aggregate limit is used, either the general aggregate limit must apply separately to this Agreement or the general aggregate limit must be twice the required occurrence limit Additional Insured Endorsement *Must be primary and must not or Blanket AI Endorsement for exclude Products/Completed 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 damage Code 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: City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 138 of 184 DocuSign Envelope ID: 9802AF1E-6ACC-48A8-99BB-FCBE358677FE EXHIBIT C CONSULTANT CONFLICT OF INTEREST DESIGNATION 12 The Political Reform Act and the Chula Vista Conflict of Interest Code local government officials, including some consultants, to make certain public disclosures using a Statement of Economic Interests form (Form 700). Once filed, a Form 700 is a public document, accessible to any member of the public. In addition, consultants designated to file the Form 700 are also required to comply with certain ethics 3 training requirements. 4 A. Consultant IS a corporation or limited liability company and is therefore EXCLUDED from disclosure. B. Consultant NOT a corporation or limited liability company and disclosure designation is as follows: APPLICABLE DESIGNATIONS FOR INDIVIDUAL(S) ASSIGNED TO PROVIDE SERVICES (Category descriptions available at www.chulavistaca.gov/departments/city-clerk/conflict-of-interest-code.) 1. Required Filers Each individual who will be performing services for the City pursuant to the Agreement and who meets the definition 2. Required Filing Deadlines Each initial Form 700 required under this Agreement shall be filed with the Office of the City Clerk via the City's online filing system, NetFile, within 30 days of the approval of the Agreement. Additional Form 700 filings will be required annually on April 1 during the term of the Agreement, and within 30 days of the termination of the Agreement. 3. Filing Designation The City Department Director will designate each individual who will be providing services to the City pursuant to the Agreement as full disclosure, limited disclosure, or excluded from disclosure, based on an analysis of the services the Consultant will provide. Notwithstanding this designation or anything in the Agreement, the Consultant is ultimately responsible for complying with FPPC regulations and filing requirements. If you have any questions regarding filing requirements, please do not hesitate to contact the City Clerk at (619)691-5041, or the FPPC at 1-866-ASK-FPPC, or (866) 275-3772 *2. Pursuant to the duly adopted City of Chula Vista Conflict of Interest Code, this document shall serve as the written requirement to comply with the disclosure requirements set forth in the Code. Completed by: Tracy Lamb 1 Cal. Gov. Code §§81000 et seq.; FPPC Regs. 18700.3 and 18704. 2 Chula Vista Municipal Code §§2.02.010-2.02.040. 3 Cal. Gov. Code §§53234, et seq. th 4 CA FPPC Adv. A-15-147 (Chadwick) (2015); Davis v. Fresno Unified School District (2015) 237 Cal.App.4 261; FPPC Reg. ude corporation or limited liability company). City of Chula Vista Agreement No.: Obtain From City Clerk x5961 Consultant Name: DeLorenzo International Inc. Rev. 10/24/17 2019-07-09 Agenda PacketPage 139 of 184 2019-07-09 Agenda PacketPage 140 of 184 2019-07-09 Agenda PacketPage 141 of 184 2019-07-09 Agenda PacketPage 142 of 184 2019-07-09 Agenda PacketPage 143 of 184 2019-07-09 Agenda PacketPage 144 of 184 2019-07-09 Agenda PacketPage 145 of 184 2019-07-09 Agenda PacketPage 146 of 184 2019-07-09 Agenda PacketPage 147 of 184 2019-07-09 Agenda PacketPage 148 of 184 2019-07-09 Agenda PacketPage 149 of 184 2019-07-09 Agenda PacketPage 150 of 184 2019-07-09 Agenda PacketPage 151 of 184 2019-07-09 Agenda PacketPage 152 of 184 2019-07-09 Agenda PacketPage 153 of 184 2019-07-09 Agenda PacketPage 154 of 184 2019-07-09 Agenda PacketPage 155 of 184 2019-07-09 Agenda PacketPage 156 of 184 2019-07-09 Agenda PacketPage 157 of 184 2019-07-09 Agenda PacketPage 158 of 184 2019-07-09 Agenda PacketPage 159 of 184 2019-07-09 Agenda PacketPage 160 of 184 2019-07-09 Agenda PacketPage 161 of 184 2019-07-09 Agenda PacketPage 162 of 184 2019-07-09 Agenda PacketPage 163 of 184 3990 Old Town Avenue, Suite A-204, San Diego, California 92110 Phone: 619-295-5115 Fax: 619-297-2354 2019-07-09 Agenda PacketPage 164 of 184 o o o 2019-07-09 Agenda PacketPage 165 of 184 2019-07-09 Agenda PacketPage 166 of 184 June 10, 2019 TO:Mayors, City Managers and City Clerks RE:DESIGNATION OF VOTING DELEGATES AND ALTERNATES League of California Cities Annual Conference –October 16 -18, Long Beach The League’s 2019 Annual Conference is scheduled for October 16 –18 in Long Beach. An importantpartoftheAnnual Conferenceis theAnnualBusinessMeeting(during General Assembly), scheduledfor12:30 p.m. on Friday, October 18, at the Long Beach Convention Center. At this meeting, the League membership considers and takes action on resolutions that establish League policy. In order to vote at the Annual BusinessMeeting,your city council must designate a voting delegate. Your city may also appoint up to two alternate voting delegates, one of whom may vote in the event that the designated voting delegate is unable to serve in that capacity. Please complete the attached Voting Delegate form and return it to the League’s office no later than Friday, October 4.This will allow us time to establish voting delegate/alternate records prior to the conference. Please note the following procedures are intended to ensure the integrity of the voting process at the Annual Business Meeting. Action by Council Required. Consistent with League bylaws, a city’s voting delegate and up to two alternates must be designated by the city council. When completing the attached Voting Delegate form, please attach either a copy of the council resolution that reflects the council action taken, or have your city clerk or mayor sign the formaffirming that the names provided are those selected by the city council. Please note that designating the voting delegate and alternates mustbe done by city council action and cannot be accomplished by individual action of the mayor or city manager alone. Conference Registration Required.The voting delegate and alternatesmust be registered to attend the conference. They need not register for the entire conference; they may register for Friday only. To register for the conference, please go to our website: www.cacities.org. In order to cast a vote, at least one voter must be present at the Business Meeting and in possession of the voting delegate card. Voting delegates and alternates need to pick up their conference badges before signing in and picking up the voting delegate card at the Voting Delegate Desk. This will enable them to receive the special sticker on their name badges that will admit them into the voting area during the Business Meeting. 2019-07-09 Agenda PacketPage 167 of 184 Transferring Voting Card to Non-Designated Individuals Not Allowed.The voting delegate card may be transferred freely between the voting delegate and alternates, but only between the voting delegate and alternates. If the voting delegate and alternates find themselves unable to attend the Business Meeting, they may not transfer the voting card to another city official. Seating Protocol during General Assembly.At the Business Meeting, individuals with the voting card will sit in a separate area. Admission to this area will be limited to those individuals with a special sticker on their name badge identifying them as a voting delegate or alternate. If the voting delegate and alternates wish to sit together, they must sign in at the Voting Delegate Desk and obtain the special sticker on their badges. The Voting Delegate Desk, located in the conference registration area of the Sacramento Convention Center, will be open at the following times: Wednesday, October 16, 8:00 a.m. –6:00 p.m.; Thursday, October 17, 7:00 a.m. –4:00 p.m.; and Friday, October 18, 7:30 a.m.–11:30 a.m.. The Voting Delegate Desk will also be open at the Business Meeting on Friday, but will be closed during roll calls and voting. The voting procedures that will be used at the conference are attached to this memo. Please share these procedures and this memo with your council and especially with the individuals that your council designates as your city’s voting delegate and alternates. Once again, thank you for completing the voting delegate and alternate form and returning it to the League’s office by Friday, October 4. If you have questions, please call Darla Yacub at (916) 658-8254. Attachments: Annual Conference Voting Procedures Voting Delegate/Alternate Form 2019-07-09 Agenda PacketPage 168 of 184 Annual Conference Voting Procedures 1.One City One Vote.Each member city has a right to cast one vote on matters pertaining to League policy. 2.Designating a City Voting Representative.Prior to the Annual Conference, each city councilmay designate a voting delegate and up to two alternates; these individuals are identified on the Voting Delegate Form provided to the League Credentials Committee. 3.Registering with the Credentials Committee.The voting delegate, or alternates, may pick up the city's voting card at the Voting Delegate Desk in the conference registration area. Voting delegates and alternates must sign in at the Voting Delegate Desk. Here they will receive a special sticker on their name badge and thus be admitted to the voting area at the Business Meeting. 4.Signing Initiated Resolution Petitions. Only those individuals who are voting delegates (or alternates), and who have picked up their city’s voting card by providing a signature to the Credentials Committee at the Voting Delegate Desk, may sign petitions to initiate a resolution. 5.Voting.To cast the city's vote, a city official must have in his or her possession the city's voting card and be registered with the Credentials Committee. The voting card may be transferred freely between the voting delegate and alternates, but may not be transferred to another city official who is neither a voting delegate or alternate. 6.Voting Area at Business Meeting. At the Business Meeting, individuals with a voting card will sit in a designated area. Admission will be limited to those individuals with a special sticker on their name badge identifying them as a voting delegate or alternate. 7.Resolving Disputes. In case of dispute, the Credentials Committee will determine the validity of signatures on petitioned resolutions and the right of a city official to vote at the Business Meeting. 2019-07-09 Agenda PacketPage 169 of 184 CITY 2019-07-09 Agenda PacketPage 170 of 184 2019-07-09 Agenda PacketPage 171 of 184 2019-07-09 Agenda PacketPage 172 of 184 2019-07-09 Agenda PacketPage 173 of 184 2019-07-09 Agenda PacketPage 174 of 184 2019-07-09 Agenda PacketPage 175 of 184 2019-07-09 Agenda PacketPage 176 of 184 2019-07-09 Agenda PacketPage 177 of 184 2019-07-09 Agenda PacketPage 178 of 184 2019-07-09 Agenda PacketPage 179 of 184 2019-07-09 Agenda PacketPage 180 of 184 2019-07-09 Agenda PacketPage 181 of 184 2019-07-09 Agenda PacketPage 182 of 184 2019-07-09 Agenda PacketPage 183 of 184 2019-07-09 Agenda PacketPage 184 of 184