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HomeMy WebLinkAbout2020/04/21 Agenda Packet I declare under penalty of perjury that I am employed by the City of Chula Vista in the office of the City Clerk and that I posted the document according to Brown Act requirements. Dated: 17 2Q217 Signed: — ON CITY OF CHULA VISTA Mary Casillas Salas, Mayor John McCann, Councilmember- District 1 Gary Halbert, City Manager Jill M. Galvez, Councilmember- District 2 Glen R. Googins, City Attorney Stephen C. Padilla, Councilmember- District 3 Kerry K. Bigelow, City Clerk Mike Diaz, Councilmember- District 4 Tuesday, April 21, 2020 5:00 PM Council Chambers 276 4th Avenue, Building A Chula Vista, CA 91910 REGULAR MEETING OF THE CITY COUNCIL **REVISED 4/17/2020** PLEASE NOTE THAT, PURSUANT TO THE GOVERNOR OF THE STATE OF CALIFORNIA'S EXECUTIVE ORDER N-29-20, AND IN THE INTEREST OF THE PUBLIC HEALTH AND SAFETY, MEMBERS OF THE CITY COUNCIL AND STAFF MAY PARTICIPATE IN THIS MEETING VIA TELECONFERENCE. IN ACCORDANCE WITH THE EXECUTIVE ORDER, THE PUBLIC MAY VIEW THE MEETING ON TELEVISION AND/OR ONLINE AND NOT IN THE COUNCIL CHAMBERS. HOW TO WATCH: Members of the public can watch the meeting via livestream at https://chulavista.legistar.comICalendar.aspx, on AT&T U-verse channel 99(throughout the County), and on Cox Cable channel 24(only in Chula Vista). Recorded meetings are also aired on Wednesdays at 7 p.m. (both channels) and are archived on the City's website. HOW TO SUBMIT COMMENTS: Visit the online eComment portal for this meeting at: https:Ilchulavista.granicusideas.com/meetings. The commenting period will be open shortly after the agenda is published for a particular meeting and will remain open through the meeting, as described below. All comments will be available to the public and the City Council using the eComment portal. Comments must be received prior to the time the Mayor calls for the close of the commenting period. Comments received after such time will not be considered by the City Council. It you have difficulty or are unable to submit a comment, please contact the Office of the City Clerk for assistance at cityclerk@chulavistaca.gov or(619)691-5041. ACCESSIBILITY. Individuals with disabilities are invited to request reasonable modifications or accommodations in order to access and/or participate in a City meeting by contacting the City Clerk's Office at cityclerk@chulavistaca.gov or (619) 691-5041(California Relay Service is available for the hearing impaired by dialing 711) at least forty-eight hours in advance of the meeting. "'The City of Chula Vista is relying on commercial technology to livestream and accept public comments via Granicus, Inc. With the increase of virtual meetings, most platforms are working to scale their systems to meet the new demand. If we have technical difficulties, we will resolve them as quickly as possible. City staff will take all possible measures to ensure a publicly accessible experience. City of Chula Vista Page 1 Printed on 4117/2020 City Council Agenda April 21, 2020 CALL TO ORDER ROLL CALL: Councilmembers Diaz, Galvez, McCann, Padilla and Mayor Casil/as Salas PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE CONSENT CALENDAR (Items 1 - 9) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Councilmember, a member of the public, or staff requests that an item be removed for discussion. If you wish to comment on one of these items, do so at https:Ilchula vista.granicusideas.com/meetings/618-city-council-meeting/agenda items. 1. 20-0149 APPROVAL OF MINUTES of October 8, 2019. Recommended action: Council approve the minutes. 2. 20-0142 WRITTEN COMMUNICATIONS Memorandum from Councilmember Padilla requesting excused absences from the March 17 and April 7, 2020 City Council meetings. Recommended action: Council excuse the absences. 3. 20-0151 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA INCREASING THE PUBLIC EDUCATION GRANT FUND (PEG) BUDGET AND APPROVING AN AGREEMENT WITH T-MOBILE AND POTENTIALLY OTHER TELECOMMUNICATION PROVIDERS FOR A TOTAL AMOUNT OF $650,000 TO PURCHASE WIFI HOTSPOT DEVICES AND SERVICES FOR DISADVANTAGED FAMILIES (4/5 VOTE REQUIRED) Department: City Manager& Library Environmental Notice: The Project qualifies for a Categorical Exemption pursuant to the California Environmental Quality Act State Guidelines Section 15301 Class 1 (Existing Facilities), Section 15303 class 3 (New Construction or Conversion of Small Structures), and Section 15061(b)(3). Recommended Action: Council adopt the resolution. City of Chula Vista Page 2 Printed on 4/17/2020 City Council Agenda April 21,2020 4. 20-0137 ORDINANCE OF THE CITY OF CHULA VISTA AMENDING VARIOUS SECTIONS OF CHULA VISTA MUNICIPAL CODE CHAPTER 2.51 , "DISTRICTING COMMISSION," TO CHANGE THE NAME OF THE COMMISSION TO THE " REDISTRICTING COMMISSION ," MODERNIZE LANGUAGE, AND SET THE TARGET ADOPTION DATE OF THE FINAL DISTRICTING PLAN TO IMPLEMENT NEW DISTRICTS IN THE ELECTION YEAR FOLLOWING THE RELEASE OF THE FEDERAL DECENNIAL CENSUS RESULTS (SECOND READING AND ADOPTION) Department: City Clerk Environmental Notice: The activity is not a "Project'' as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended action: Council adopt the ordinance. 5. 20-0130 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING CHAPTER 4 (GENERAL BUSINESS FEES) OF THE CITY'S MASTER FEE SCHEDULE TO MODIFY VARIOUS CANNABIS-RELATED FEES Department: Finance Department Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended action: Council adopt the resolution. 6. 20-0131 ACCEPTANCE OF AUDITED COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR FISCAL YEAR ENDED JUNE 30, 2019 Department: Finance Department Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended Action: Council accept the report. City of Chula Vista Page 3 Printed on 411712020 City Council Agenda April 21,2020 7. 20-0136 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA RATIFYING AND CONFIRMING EMERGENCY ORDER 002-2020 AND EMERGENCY ORDER 002-A-2020 (EFFECTIVE APRIL 11, 2020) OF THE CHULA VISTA DIRECTOR OF EMERGENCY SERVICES Department: City Attorney & City Manager Environmental Notice: The activity is not a "Project' as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the activity also qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Recommended Action: Council adopt the resolution. 8. 20-0143 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE INFRASTRUCTURE, FACILITIES, AND EQUIPMENT EXPENDITURE PLAN AND TRANSFERRING $331 ,000 IN MEASURE P APPROPRIATIONS FROM STL0430 TO DRN0211, STORM DRAIN (CMP) REHABILITATION OUTSIDE THE RIGHT OF WAY (PHASE II) PROJECT, FOR EMERGENCY CONTRACT CHANGE ORDERS (4/5 VOTE REQUIRED) Department: Engineering Department Environmental Notice: The Project qualifies for a Class 1 Categorical Exemption pursuant to Section 15301 (Existing Facilities) of the California Environmental Quality Act State Guidelines. Recommended action: Council adopt the resolution. 9. 20-0147 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN ASSIGNMENT AND ASSUMPTION OF INVESTMENT BANKING AND BOND UNDERWRITING SERVICES AGREEMENT BETWEEN THE CITY AND THE CHULA VISTA BAYFRONT FACILITIES FINANCING AUTHORITY Department: Development Services Department Environmental Notice: The activity is not a "Project' as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Notwithstanding the foregoing, the Project was adequately covered in previously certified Environmental Impact Report UPD#83356- EIR-658/SCH#2005081077. Recommended action: Council adopt the resolution. City of Chula Vista Page 4 Printed on 411712020 City Council Agenda April 21,2020 ITEMS REMOVED FROM THE CONSENT CALENDAR PUBLIC COMMENTS Persons commenting during Public Comments may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from discussing or taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. If you wish to comment, you may do so at https://chulavista.granicusideas.com/meetings/618-city-council-meeting/agenda_items, 10. 20-0144 PUBLIC COMMENTS RECEIVED for April 21, 2020 ACTION ITEMS The Item(s) listed in this section of the agenda will be considered individually by the Council and are expected to elicit discussion and deliberation. If you wish to comment on one of these items, you may do so at https://chulavista.gra nicusideas.com/meetings/619-city-council-meeting/agenda items. 11. 20-0108 PRESENTATION AND DISCUSSION OF THE CITY'S PRELIMINARY FISCAL YEAR 2020 - 2021 GENERAL FUND BUDGET Department: Finance Department Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. Recommended action: Council provide feedback as appropriate. CITY MANAGER'S REPORTS MAYOR'S REPORTS COUNCILMEMBERS' COMMENTS CITY ATTORNEY'S REPORTS City of Chula Vista Page 5 Printed on 411712020 City Council Agenda April 21,2020 CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council meeting at the City Attorney's office in accordance with the Ralph M. Brown Act(Government Code 54957.7). 12. 20-0133 CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (d)(1) Name of case: City of Imperial Beach, et al. v. The International Boundary and Water Commission-United States Section, et al., United States District Court, Case No. 18cv457-JM-LL 13. 20-0141 PUBLIC EMPLOYEE APPOINTMENT PURSUANT TO GOVERNMENT CODE SECTION 54957(b) Title: City Manager ADJOURNMENT to the regular City Council meeting on April 28, 2020, at 5:00 p.m., in the Council Chambers. Materials provided to the City Council related to any open-session item on this agenda are available for public review at the City Clerk's Office, located in City Hall at 276 Fourth Avenue, Building A, during normal business hours. Sign up at www.chulavistaca.gov to receive email notifications when City Council agendas are published online. City of Chula Vista Page 6 Printed on 411712020 City Council Agenda April 21,2020 NOTICE OF REVIEW AND PENDING APPROVAL OF FINAL MAP In accordance with California Government Code Section 66458(d), notice is hereby given that the City Engineer has reviewed and, immediately following this City Council meeting of April 21, 2020, will approve the following final map: Chula Vista Track No. PCS 16-0007, Otay River Business Park, Work Order No.:EY-443 Specifically, the City Engineer has caused the map to be examined and has made the following findings: (1) The map substantially conforms to the approved tentative map, and any approved alterations thereof and any conditions of approval imposed with said tentative map. (2) The map complies with the provisions of the Subdivision Map Act and any local ordinances applicable at the time of approval of the tentative map. (3) The map is technically correct. Said map will be finalized and recorded, unless an interested party files a valid appeal of the City Engineer's action to City Council no later than 2:00 p.m., 10 calendar days from the date of this City Council meeting. A valid appeal must identify the improper/incorrect finding and the basis for such conclusion. If you have any questions about the map approval findings or need additional information about the map or your appeal rights, please feel free to contact Boushra Salem, Principal Civil Engineer at (619) 409-5483, or at bsa lem@ ch ula vis ta ca.go v. City of Chula Vista Page 7 Printed on 4117/2020 C® of Chula Vista Meetinge Minutes -, Draft Tuesday,October 8,2019 5:00 RM Council Chambers 276 4th Avenue, (Building A Chula Vista, CA 91910 REGULAR MEETING CSF THE CITY COUNCIL The City Council minutes are prepared and ordered to correspond to the City Council Agenda. Agenda items may be taken out of order during the meeting. The agenda items at this meeting were considered in the order presented. CALL TO ORDER A regular meeting of the City Council of the City of Chula Vista was called to order at 5:01 pm. in the Council Chambers, located in City Hall, 276 Fourth Avenue, Chula Vista, California. ROLL CALL: Present: Councilmember Diaz, Councilmernber Galvez, Councilmernber McCann, Deputy Mayor Padilla and Mayor Casillas Salas Also Present: Assistant City Manager Kachadoorian, Deputy City Attorney Silva, City Clerk Bigelow, and Assistant City Clerk Turner PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE Deputy Mayor Padilla led the Pledge of Allegiance. PUBLIC COMMENTS Deputy Mayor Padilla left the dais at 5.-03 p.m. and returned at 5.-35 p.m. The following members of the public spoke in opposition to the Drag Queen Story Time program: -John Moore, San Diego resident -Andres Wong, Chula Vista resident -Mary Mayer-Oakes -Diane Chapman, Ramona resident -Alexandra Manders, Chula Vista resident -Michael Brault, Chula Vista resident -Reverend Billy Falling, Chula Vista resident -Michelle Huffman, Imperial Beach resident -Lillie Hebert, Chula Vista resident - Tony Villafranca -Estela Stachowitz, Chula Vista resident The following members of the public submitted written documentation in opposition to the Drag Queen Story Time program, but declined or were not present to speak: - William Steffy, Chula Vista resident -Eli Komai, San Diego resident -Famela Ramos, Chula Vista resident -Ruben Serrano, Chula Vista resident -Martha Doiron, Chula Vista resident City of Chula Vista Page 1 2020-04-21 Agenda Packet, Page 8 of 421 City Council Meeting Minutes-IDraft. October 8,2019 Kathy Lippitt, Poway resident, expressed concern regarding vaping and marijuana-related activities in the City and submitted written documentation. ACTION ITEMS 11 1 9�-0477 RESOLUTION NO. 2019-194 OF THE CITY COUNCIL O1= THE CITY OF CHULA VISTA APPROVING THE CHULA VISTA BAYFRONT PROJECT FUNDING AGREEMENT BY AND AMONG THE COUNTY OF SA DIEGO, THE CITY OF CHULA VISTA, THE SAN DIEGO UNIFIED PORT DISTRICT, AND, THE CHULA VISTA BAYFRONT FACILITIES FINANCING AUTHORITY WHEREIN THE COUNTY WILL PROVIDE A $25,000,000 LOAN TO THE CHULA VISTA BAYFRONT PROJECT Deputy City Manager Kachadoorian gave a brief presentation on the item and answered questions of the Council. Victor ,Aviva, representing County Supervisor Greg Cox, submitted written documentation in support of the item and did not wish to speak.. ACTION: A motion was made by Mayor Casillas Salas, seconded by Councilrnember Galvez, to adapt Resolution No. 2019-194, heading read, teat waived. The motion carried by the following vote: Yes: 5- Diaz, Galvez, McCann, (Padilla and Casillas Salas I +o: 0 Abstain: 0 CITY MANAGER'S DEPORT There were none. MAYOR'S REPORTS Mayor Casillas Salas spoke regarding the following events. reception for Consul General Carlos Gonzalez Guiterrez, Mana de San Diego fundraising gala, and the grand re-opening of Rico's on Third, a hair salon serving cancer patients with free salon services. COUNCILMEMBERS" COMMEN'T'S There were mane. CITY ATTORNEYS REPORTS Deputy City .Attorney Silva expressed gratitude to Council for its service, and stated City .Attorney Googins would be present at the next City Council meeting.. ADJOURNMENT The meeting was adjourned at 5:43 p.m. Minutes prepared by.- Tyshar L. Turner,Assistant City Clerk Kerry K. Bigelow,i MMCF, City CIer City of Chula vista Page 2 2020-04-21 Agenda Packet, Page 9 of 421. Mayor and City Council City of Chula Vista 276 Fourth Avenue Chula Vista, CA 919101 CMTS'Of (619)69 1-5044 CH (619)476-5379 FAX MEMORANDUM DATE: 4/7/2020 TO: Mayr and Councilmembers CCE City Manager, City Clerk, City Attorney FROM: Stephen C. Padilla, Cauncilmember SUBJECT. bequest for Excused Absence Dear Mayor and Cour cilmembers, Please excuse my absence from the City Council meetings on 3/17/2020 and 4/7/2020 due t illness.. Sincerely, fM9VY0X w° w II oi N'mrum'rrr .. Steve Padilla Councilmember District 3 1 2020-04-21 Agenda Packet gage 10 of 421. zmr, ..' l IN III til v r :a C1TY' C,0UNC'1LSTIA, ""EMENT CITY, OF CHUIAVISTA r l 1 April 21,202,0 File ID: 20-011 n 2 -01'37 „MITI ORDINANCE OF THE CITY"of CHULAVISTA AMENDING VARIOUS SECTIONS OF CHULAVISTA MUNICIPAL CODE CHAPTER 2.51, "DISTRICTING COMMISSION," To CHANGE THE NAME of THE COMMISSION'TO THE "REDISTRICTING COMMISSION,"MODERNIZE LANGUAGE,AND SET THE TARGET ADOPTION DATE of THE FINAL DISTRICTING PAN TO IMPLEMENT NEW DISTRICTS IN THE ELECTION YEAR FOLLOWING THE RELEASE of THE FEDERAL DECENNIAL CENSUS RESULTS (SECOND READING AND ADOPTION) ACTIONRECOMMENDED Council adopt the ordinance. SUMMARY Adoption of the ordinance sets the target adoption date of the Final. Districting Plan to implement the new districts in the election year immediately following the release of the results of the Federal Decennial Census. Further, the ordinance renames the "Districting Commission" the "Redistricting Commission," to use the more common term for, redistricting proceedings. Finally, the ordinance updates language regarding the regulations pertaining to the Redistricting Commission, based on updated legislation., feedback from the original Districting Commission,and input from staff. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance witthe California Environmental Quality pct CEQA) and has determined that this activity is not a "Project" as defined under, Section 15,378 of the State CEA Guidelines because it grill not result in a physical change to the environment; therefore, pursuant to Section 150 o(c)(3) of the State CEQA Guidelines,the activity is not subject to CEQA. Thus,no environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Staff reviewed and incorprorated some recommendations from the 2015 Districting Commission Final Report,which is included as Attachment 1. DISCUSSION Background In 2012, the Cites Charter was amended to provide that City Councilmembers be elected by geographical 1 . 0 0 1 P IiI 1 2020-04-21 Agenda Packet, gage 82 of 421. district beginning with the 2016 election., In 2014 the Districting Commission was formed and the Council approved the Commission's Recommended Districting plan on July 14, 2 0 IS. Every 10 years, the U.S. Census Bureau conducts the Federal Decennial Census to count population throughout the country,as required by the United States Constitution.Among other uses,this information is used to redraw legislative districts, such as the City Council districts, based on population changes. The results of each Census are released the following year. The Census was conducted on April 1, 2020 and the results will be released on April 1, 2021. Redistricting Timeframe City Charter section 300.5(A)(2) calls for redistricting, "within one year of receipt by the City of the final Federal Decennial Census information for use commencing with the next scheduled general municipal election occurring at least three months after adoption of the Final Districting Plan." Based on the provided timeframe, election deadlines, and depending on when redistricting occurred, the new Council districts resulting from the 2020 Census could be implemented in either election year 20or 20 24., Staff recommends setting a target date of August of the year the Census results are released to adopt the Final Districting Plan.This approach would implement the new City Council districts as soon as possible following the Census and would make use of the updated population information for a full ten years between redistricting efforts. A general timeline for implementation of the new districts in time for the 2022 elections is as follows: # Date Event 1 April 2020 Census Day 2 August 2020 Seat Redistricting Commission ............... 3 March 2021 Release of Census Results 4 April 2,021 Candidates for March 2,022 Election May Beg in Receiving Campaign Contributions ................... 5 Jul 2021 Aproval of Recommended Diistricting Plan . ............p .................................................................................................................................................................................................................................................................................................................................. ........................................................................................................................................................................................................................................................................................................................................................................................................... 6 AuLyust 2021 Council approval of the Final Districting Plan 7 November 15 Candidate Nomination Period for March 2022 election December 10, 2021 8 March 8, 2 0 2 1 Election with Updated District Boundaries Individuals who wish to run in the 2022 elections can begin receiving campaign contributions in April 2021, while district lines will not be finalized until August of that year.If Council adopts the subject ordinance,staff plans to propose changes to the Campaign Contribution ordinance (CVMC 2.52) to address the potential situation where a candidate begins soliciting campaign funds with the intent to run in a particular district, and redistricting results in a change to their district of residency mid-campaign. Changing the Name of the Districting,Commission and Modernizing Language Elections Code section 23000(g)defines"Redistricting"as either districting or redistricting.The terminology typically used when districts are established, and the boundaries are being adjusted is "redistricting." For clarity, staff recommends adding the definition of "Redistricting" to match the Elections Code and also referring to the next and all subsequent Commissions as "Redistricting Commission." P 2 2020-04-21 Agenda Packet, Page 8,3 of 421 Other notable changes proposed to the Municipal Code are as follows: Process for select"on of consultants. Charter section 300.5(A) provides that one or more independent consultants experienced in districting work shall be used to assist the Districting Commission in developing districting plans. To ensure availability of quality consultants and to streamline the work of the Districting Commission, staff recommends defining a process whereby staff solicits consultant proposals though the City's established procurement practices, and the, Districting Commission evaluates the proposals and submits recommendations to City Council for approval.Assembly Bill 849 (2 19) created a timeline for California General Law and some Charter cities to conduct redistricting. Many of these agencies will redistrict around the,same time,following the Census, which may limit the availability of qualified consultants. Staff would plan to issue a Request for Proposals early in the process to encourage proposals from a variety of qualified consultants for the Districting Commission and City Council consideration. Districtling Commission Meetings. Proposed changes to the ordinance call for the Districting Commission to meet regularly at Council Chambers,as well as to hold at least one special meeting in each Council District prior to the development of a Draft Districting Plan., This would ensure opportunities to participate would be provided in each district,as well as make use of the technology available in Council Chambers for audio/video recording,translation,and meeting management. Other Updates. Other updates to the Districting Commission section of the municipal code include consolidating repetitive language, removing reference to instructions to the initial Districting Commission,and other minor clarifications and updates. DECISIOM-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act(Cal.Gov't Code§87100,et seq.). Staff is not independently aware, and has not been informed by any Councilmember, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter. CURREN"I",-YEAR FISCAL IMPACT There is no fiscal impact in the current year.The Districting Commission is proposed to be seated in August 2020. ONGOING FISCAL IMPACT It is anticipated the Redistricting Commission will require a budget of$12 5,000.The budget will be included as part oft e City Manager's Fiscal Year 2021 Proposed Budget and will be considered by the City Council as part of the normal budget process. ATTACI IMENTS 1.0 - 2015 Districting Commission Final Report. P 3 2020-04-21 Agenda Packet, Page 8,4 of 421 Staff Contact.- Cristina Hernandez, City ClerkAnalyst P 4 2020-04-21 Agenda Packet, Page 8,5 of 421 SECOND READING AND ADOPTION Ordinance No. ORDINANCE OF THE CITY OF C LILA VISTA. AMENDING VARIOUS SECTIONS OF CHULA VISTA MUNICIPAL CODE CHAPTER 2.5 1, "DISTRICTING COMMISSION," TO CHANGE THE NAME OF THE COMMISSION TO TIME "REDISTRICTING COMMISSION," MODERNIZE LANGUAGE, AND SE TIME TARGET ADOPTION DATE OF THE FINAL DISTRICTING G LEAN TO IMPLEMENT NEW DISTRICTS IN THE ELECTION YEAR FOLLOWING THE RELEASE OF THE FEDERAL DECENNIAL CENSUS RESULTS WHEREAS, the City Charter was amended in 20112 to provide for election of Coity Council embers by district and provides for a Districting Commission, which is responsible for recommending to the City Council the Council district boundaries following each Federal Decennial Census; and WHEREAS,the redistricting timeline established in the Charter could result in new Council district boundaries being implemented in the 2+ 22 or 20124 election years; and WHEREAS, to timely revise district boundaries to reflect current population and community of interest data, the City Council desires to establish a target adoption timeline of the Filial Districting Plan that would imp�leme t the updated district boundaries in the election year fallowing the release of the Census results; and WHEREAS, the City Council desires to mare additional revisions to bring language up to date and clarify rules and procedures for the Districting Commission. NOW THEREFORE the City Council of the City of Chula Vista does ordain as follows: Section I. That Chapter 2.51 is hereby amended to read as follows: Chapter 2.51 REDISTRICTING COMMISSION .51.010 Creaflon. The districting Commission was created by City Charter Section 30101.5, that Commission has been renamed the Redistricting Commission. The provisions of Sections 300.5, 02(c) and 604 of the City Charter, and the general rules governing boards and commissions set forth in Chapter 2.25 CVMC, and state lav, including Elections Cede sections 21620- 2162 , to the extent applicable to the City, shall govern the Redistricting Commission, , except as specifically provided below. For purposes of this chapter, "Districting" and (.'Redistricting"mean either districting or redistricting. (Ord. 3305 § 1, 201.4). 2020-04-21 Agenda Packet, gage 86 of 421. Ordinance No. Page 2 .5 1.020 Purpose and 'intent. The purpose of this chapter is to supplement City Charter Section 30�O�.5,which establishes the Redistricting Commission and sets forth its powers and duties. (Ord. 33o5 § 1, 2014). 2.51.030 Governing law in event of conflict. If there is any conflict between this chapter and the Charter, the Charter shall govern. If there is any conflict between this chapter and Chapter 2.25 CVMC, this chapter shall govern. 03rd.. 3305 § 1, 2014). .5 .040 Functions and duties. The Redistricting Commission shall hold the powers, and perform the duties, enumerated in City Charter Section 300.5, and shall: A. Perform other duties and powers as the City Council may, by ordinance, confer upon the Commission in order to carry out the Commission's powers and duties, consistent with Charter Section 300.5. The purpose of the Redistricting Commission shall be to recommend to the City Council adjustments to the boundaries of the Council districts by which City Councilmembers shall be elected, based on Federal Decennial Census information,with the goals of City Council approval of the Final Redistricting Plan no later than the end of the month of August, in the year following each Federal Decennial Census. B. Make recommendations to the City Council and consult with City staff. C. Conduct itself in an open and transparent manner, including-, comply with the Brown Act,, engage public participation to the extent reasonably possible during the redistricting process, and remain free from legislative influence. Notwithstanding the foregoing, the Redistricting Commission shall not have the independent authority to direct the conduct of any City employee. (Ord. 3305 § 1, 2014). 2.51.045 Selection of Consultants A. Pursuant to City Charter section 300.5, one or more, as necessary, independent consultants experienced and competent in the skills necessary for the districting work shall be utilized to assist the Commission in developing the redistricting plans, B. Staff shall be responsible for soliciting consultant proposals, through the City's established procurement practices, in the time and manner staff determines necessary to support the Commission's efforts, and to ensure compliance with established timelines for the approval of the Final Redistricting Plan. C. The Commission shall evaluate the qualified proposals and submit recommendations to the City Council for selection of the consultants. 2.51.050 Membership. A. In accordance with City Charter Section 300.5,, the Redistricting Commission shall consist of seven members, selected and appointed in the manner provided for in that section. 2020-04-21 Agenda Packet, Page 8,7 of 421 Ordinance No. Page 3 B. The members of the Redistricting Commission shall be appointed as soon as practicable, with goal of having the Redistricting Commission members determined by August of the year the Federal Decennial Census is conducted. (Ord. 3305 § 1, 2014). .5 .060 Appointment and removal of Commission members. Notwithstanding CVMC 2.25.050, the following rules and procedures for member appointment and removal shall apply to the Redistricting Commission: A. Any person desiring to serve on the Redistricting Commission shall apply by submitting an application to the City Clerk during the applicable application submittal period. The application shall be on a form prepared by the City Clerk and approved by the City Attorney. B. The City Clerk shall conduct a prima facie review of each submitted application for completeness within one business day of receipt. If the City Clerk deems an application to be incomplete, the City Clerk shall notify the applicant of such and provide the applicant an opportunity to complete the application within the application submittal period. The submittal deadline shall not be extended to allow correction of incomplete ap�p�lications; all applications must be submitted to the City Clerk by the close of the application submittal period in order to be considered. C. Upon close of the application submittal period, the City Clerk shall review all applications submitted and determine the number of complete applications. If the City Clerk determines that fewer than 10 complete applications have been submitted, the City Clerk shall extend the application period, if legally permissible and if doing so will not interfere with applicable deadlines. The City Clerk extended application period shall be no more than one-half the length of the initial application period. D. Once all application submittal periods have closed, the City Clerk shall forward all complete applications to the Charter Review Commission. Before doing so, the City Clerk shall redact the applicants' personal contact information,including address,phone numbers and email addresses, as permitted by law, and shall note on each application the Council, district of residence for each applicant. Incomplete applications shall not be forwarded to the Charter Review Commission for consideration. E. The Charter Review Commission shall consider the forwarded applications at an open meeting to consider the 10 most qualified applicants, pursuant to Charter Section 300.5(D)(1). In making the determination, pursuant to Charter Sections 300.5(D)(3)(a) through (e), the Charter Review Commission shall consider the applicants'. 1. Geographic diversity; 2. Relevant knowledge and/or demonstrated analytical abilities that would allow the Redistricting Commission to carry out its responsibilities with a high degree of competence,* 3. Demonstrated ability to serve impartially in a nonpartisan role; 2020-04-21 Agenda Packet, Page 8,8 of 421 Ordinance 1' o. Page 4 4. Experience in the areas of public communication and/or public outreach in the City; and 5. Experience in civic and/or volunteer activities in the City. In addition,to the extent possible and as permitted by law,the Charter Review Commission shall consider available information which would assist them in creating an applicant pool of individuals who are reflective of the City's gender, racial and ethnic diversity, in accordance with Charter Section � �,5 )(a). The Charter Review Commission shall. not use formulas ors specific ratios in identifying which applicants will e included int e pool of 10. F. The Charter Review Commissions all then oversee a process whereby four applicants are selected, at random, from the pool of 1.0 applicants chosen pursuant to subsection (E of this section. The City Clerk, or their designee from the City Clerk's office, shall assist the Commission in the random selection by selecting four applicants by lot, G. The four randomly selected applicants shall be sworn in by the City Clary and shall. constitute the first four members of the Redistricting Commission. H. The members of the Charter Review Commission shall not communicate with any member of the City Council, or their representatives, about any matter related to the nomination process or the applicants, prior tot e swearing In of the four members. I. Once the first four members of a Redistricting Commission are appointed,they shall be provided with the remaining sig redacted applications. In accordance with Charter Section. 300.5(D) 3 , the initial four members of the Redistricting Commission shall consider the remaining forwarded applications at an open meeting to select three additional members. The Redistricting Commission shall select the most qualified applicants; in doing so, the Redistricting Commission shall consider the same criteria provided for in subsection (E) above. The selection of each member shall require at least three affirmative votes of the Redistricting Commission. J. The members of the Redistricting Commission shall not communicate with any member of the City Council, or their representatives, about any matter related to the nomination process, or the applicants, prior to time presentation of the three applicants to time City Council for approval. K. The three applicants selected by the first four members of the Redistricting Commission shall be submitted to the City Council for appointment to the Commission. The three applicants shall be appointed, unless the City Council finds by at least four affirmative votes that the approval of one or more of the nominees would be inconsistent with the goals enumerated in Charter Section 300.5(D)(3). L. If, pursuant to Charter Section 3 . (D)(3 , the Council must approve one or more additional, applicants, in lieu of those submitted to it for approval, it shall do so at its Wert City Council meeting, after reviewing the remaining applications. 2020-04-21 Agenda Packet, gage 89 of 421. Ordinance No. Page 5 M. Members of the Redistricting Commission may be removed for cause in accordance with CVMC 2.25.105. (Ord. 3305 § 1, 2014). 2.51.070 Terms. A. Notwithstanding CVMC. 2.25.080,, members of each Redistricting Commission shall serve from the time they are appointed until dissolution of the Redistricting Commission, pursuant to Charter Section 300.5(J). B. Vacancies on a Redistricting Commission shall be handled in accordance with Charter Section 300.5(D)(6) and CVMC. 2.25.105 (Ord. 3305 § 1, 2014). 2.51.080 Meetings. A.Notwithstanding CVMC.2.25.20.0.(A).each Redistricting Commission shall establish its regular meeting day and time by written resolution, in accordance with CVMC 2.25.200. Regular meetings shall be held in Council Chambers, at 276 Fourth Avenue, in the City. The Redistricting Commission shall hold at least one public meeting in each of the City's Council Districts prior to the development of the Draft Districting Plan. All meetings shall be held in accordance with Charter Section 300.5 and any other applicable laws or regulations. (Ord. 3305 § 1, 2014). B. The Redistricting Commission shall hold at least two (2) public meetings between the release of a Draft Districting Plan and approval of a Recommended Districting Plan; provided, however, that the first such public meeting shall not be held sooner than seven (7) days following the release of a Draft Districting Plan, in accordance with Charter section 300.5 and California Elections Code section 21+ 27.1.C. Public meetings should be scheduled in a timeframe that considers maintaining public interest and minimizing costs associated with conducting meetings. 2.51.090 Budget. The City shall ensure that adequate funds are appropriated for the Redistricting Commission to carry out its duties, including the utilization of independent consultants pursuant to Charter Section 300.5(A)(3). The City Attorney,with input from the City Clerk, shall submit the appropriate budget requests to the Finance Director so that such requests can be included in the City Manager's proposed budget for the fiscal year during which the Redistricting Commission will be appointed. (Ord. 3305 § 1, 2014). 2.51.100 Implementing procedures. The City Clerk and City Attorney shall be authorized to create and implement administrative rules and procedures as necessary, consistent with this chapter, the City Charter, and applicable state law, for the creation, establishment and management of the Redistricting Commission. (Ord. 3305 § 1, 2014). Section 11. 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 2020-04-21 Agenda Packet, Page 90 of 421 Ordinance No. Page 6 competent jurisdiction, that portion shall be deemed severable, and such invalidity, unenforceability or unconstitutionality shall not affect the validity or enforceability of the remaining portions of the Ordinance,or its application to any other person or circumstance. The City Council of the City of Chula Vista hereby declares that it would have adopted each section, sentence, clause or phrase of this Ordinance, irrespective of the fact that any one or more other sections, sentences, clauses or phrases of the Ordinance be declared invalid, unenforceable or unconstitutional. Section 111. 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 all be construed in light of that intent. Section IV. Effective Date This Ordinance shall take effect and be in force on the thirtieth day after its final passage. Section V. Publication The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published or posted according to law. Presented by Approved as, to form by Kerry K. Bigelow, MMC. Glen R. Googins City Clerk City Attorney 2020-04-21 Agenda Packet, Page 91 of 421 Page I of 6 Chapter 2.51 REDISTRICTfNG COMMISSION 2.51.0 10 Creation. The Districting Commission was created by City Charter Section 300.5; that Commission hasbeco renamed the Redistricting--Commission. The provisions of Sections 300.5, 602(c)and 604 of the City Charter, and the general-rules governing boards and commissions set forth in.Chapter 2.25 CVMC, 4,itid ui iii I.Aectiodc 2 1 )20__2 62C) t(:) d"Ic %,11:)IC to hall govern the DRedistricting __s Commission, except as specifically provided below. For purposes of this chapter, "Districting"and "Redistricting"niean.either districtingor redistricliag.,jord.3305§ 11 2014). 2. 1.020 Purpose and intent. The purpose of this chapter is to supplement City Charter Section 3010.5,,which.establishes the DRDistricting Commission and sets forth its powers and duties. (Ord.3305 § 1,2014). 2.51.030 Governing law in event of conflict. If there is any conflict between this chapter and the Charter,the Charter shall govem. If there is any conflict between this chapter and Chapter 2.25 CVMC,this chapter shall govern. (Ord.3305§ 1,2014). 2.51.040 Functions and duties. The DRedistricting Commission shall hold the powers,and perform the duties, enumerated in City Charter Section 300.5, and shall: A. Perform other duties and powers as the City Council may,by ordinance, confer upon the Commission in 'T11I.C., rNt�g_% rN-r order to carry out the Commission's powers and duties, consistent with Charter Section 300.5. flnx:%0;+,tr ............ ... 11%11 1111LI"I JL_'I oll"11 W%, i'm f 11%4 VkJ V11%.V A-11tY %­,kJL*11V11 L1I%w %J163ULVV0 "Y VVIIIVXI 04vt 11%Z7%I-C1 C11111,11 I'll I cN.,+.-I A 0 11 Il'%Cl 42%/-1 111 MA.'ro")IR311 M, The purpose of stibseq ien-t-the]DRedistristing Commissions.- shall be to -%o,�% _Ct +i recommend to the City Council adjustments to the boundaries of t1hoisA iA4t% o , ........,tsthe Council districts by which City Councilmembers shall be elected,based on Federal Decennial Census information,11 with thK of City 2020-04-21 Agenda Packet, Page 92 of 421 Page 2 of 6 Council app oval of the Final Redistrictingy Plan no later than the end of the month of,August., in theyear followitw)-each Federal Decennial Census. B. Make recommendations to the City Council and consult with City staff. C. Conduct itself in an open and transparent manner, including: comply with the Brown Act, engage public participation to the extent reasonably possible during the redistricting process, and remain free from legislative influence. Notwithstanding the foregoing,the Ddistricting Commission shall not have the independent authority to direct the conduct of any City employee. (Ord.33 5 § 1,,2014), 2.5 1.04 5 Selection of Consultants Pursuant to City Charter section 300.5, one or more, as necessary, in consultants experienced and competent in the skills necessaEy for the districting...work shall-be utilized to assist the Commission in developiru-,fthe red i strictingplans B. Staff shall be responsible for soliciting consultant proposals,throug-h the City's established-Procurement practicesl in the time and manner staff determines necessary to sunport the Commission's efforts and to ensure compliance with established timelines for the approval of the Final 'Red,istricfi 'Plan_ C. The Commission shall evaluate the qualified proposals and submit recommendations to the City Council. for selection of the consultants., 2.51.050 Membership. A. In accordance with City Charter Section 300.5.the Ddistricting Commission shall consist of seven members, selected and appointed in the manner provided for in that section. B. The members of the&4A, Ddistricting Commission shall be appointed as soon.as practicable,with goats of having the Ddistricting Commission members determined by,Aug-ust of theyear the Federal Decennial ri"A 0;+,tr 0,r-tjj",r%;1 nv%*-%j-rNxYn1 rNffl-tp, Din," 't.%,tr 10 Census is conductedJulyy 2;-1014. ui:jfj_L'UVui'UJL urk., 1111VI"11 I 111"I JL lull UY Juliv_7VI 204-5. (Ord.3305 § I 2014). 2.51.060 Appointment and removal of Commission members. Notwithstanding CVM'C 2.25.050, the following rules and procedures for member appointment and removal shall apply to the DRedistricting Commission: 2020-04-21 Agenda Packet, Page 93 of 421 Page 3 of 6 A. Any person desiring to serve on the DRedistricting Commission shall apply by submitting an,application to the City Clerk during the applicable application submittal period. The application shall be on a form prepared by the City Clerk and approved by the City Attorney. B. The City Clerk shall conduct a prima facie review of each submitted application for completeness within one business day of receipt. If the City Clerk deems an application to be incomplete,the City Clerk shall notify the applicant of such and provide the applicant an opportunity to complete the application within the application submittal period. The submittal deadline shall not be extended to allow correction of incomplete applications; all applications must be submitted to the City Clerk by the close of the application submittal period in order to be considered. C. Upon close of the application submittal period,the City Clerk shall review all applications submitted and determine the number of complete applications. If the City Clerk determines that .rssfewer than 10 complete applications have been submitted,the City Clerk shall extend the application period, if legally permissible and if doing so will not interfere with applicable deadlines. The City Clerk extended application period shall be no more than one-half the length of the initial application period. D. Once all application submittal periods have closed,the City Clerk shall forward all complete applications to the Charter Review Commission. Before doing so,the City Clerk shall redact the applicants' personal contact information, including address,phone numbers and email addresses, as permitted by law, and shall r_1% n"A A1­rf_,%"f_,%1.f,1%1 n,rn note on each application the Zip("'o"(4%�, ....,.Council district of residence 1-yquad-ant 1-f-reas, - i Lly I'A for each applicant. Incomplete applications shall not be forwarded to the Charter Review Commission for consideration. E. The Charter Review Commission shall consider the forwarded applications at an open meeting to consider the 10 most qualified applicants,pursuant to Charter Section 300.5(D)(I). In making the determination, pursuant to Charter Sections 300.5(D)(3 (a)through(e ,the Charter Review Commission shall consider the applicants': 1. Geographic diversity, 2. Relevant knowledge and/or demonstrated analytical abilities that would allow the DRedistricting Commission.to carry out its responsibilities with a high degree of competence; 3. Demonstrated ability to serve impartially in a nonpartisan role; 4. Experience in the areas of public communication and/or public outreach in the City; and 5. Experience in civic and/or volunteer activities in the City. In addition, to the extent possible and as permitted by law, the Charter Review Commission shall consider ri-Ae" anndid available information which would assist them in creating an applicant pool of. d 11 iviuals ,....., Vv"111l who are reflective of the City's�,)-ender,racial and ethnic diversity, in accordance with Charter Section 2020-04-21 Agenda Packet, Page 94 of 421 Page 4 of 6 300.5(1 }(3}(a The Charter Review Commission shall not use formulas or specific ratios in identifying which applicants will be included in the pool of 10. F. The Charter Review Commission shall then oversee a process whereby four applicants are selected,at random, from the pool of 10 applicants chosen pursuant to subsection CEJ of this section. The City Clerk,or hi-s- il%l-1111411t- heir designee from the City Clerk's office, shall assist the Commission in,the random selection by selecting four applicants by lot. G. The four randomly selected applicants shall be sworn.in by the City Clerk and shall constitute the first four members of the D,districting Commission. H. The members of the Charter Review Commission shall not communicate with any member of the City Council, or their representatives, about any matter related to the nomination process or the applicants,prior to the swearing in of the four members. L Once the first four members of a DRDistricting Commission.are appointed,they shall be provided with the remaining six redacted applications. In accordance with Charter Section 300.5(1 )(3),the initial four members of the DRedistricting Commission shall consider the remaining forwarded applications at an open meeting to select three additional members. The DRedistricting Commission shall select the most qualified applicants; in doing so,the DRedistricting Commission shall consider the same criteria provided for in subsection(E)above. The selection of each member shall require atlastthree affirmative votes of the Redistricting ;o `ss` -1 -Nzj R"&A U,111111111 I V V F110 I vy I' ,, ,v ",I" 4a. A V UIJL AXIAt-,VV A Lux I%A/%it %A%�,I A,,t%J A AOL I LALV%A CUILL A Y A,IV U I (A U A A A L AVO LAICAL VV%_IUA%A,U A 11-1 VV U I%�, L-11OLI A,VUI A I ee—, C,+I- A nj, I I b 1,+ cl *-,v r j*-*,%v%n t-+j n I IV Y 'i§-% ni -% 0-1 14 0 3 ;C, L -I ctt 'U111111111CUU1111 %11�11 1%j A A 1:2 fl-tr. r, A t%I + +I, C" r, A . L_i V1,I A 1%111 111 LA I LUX VC4,10 %J I U,UJJ%W %J A I It I I U,A 11%W Ct LI%J A I UA I�_U%JJ, YJ U,L,I I %J U,LI,Vu%.�J I 111 LIJ I LY UI A%A r.1-, n"A/rN1.lyrNill ZIF" I__jYX %IV A I%11 I I V I I it V I V I V ct I INA/K71 V Kj I U1 V1 Ut V I III_UIV X��Ivy A;+ -," +,-% +1-t�l "+,!:�h"+"-%o C-1�1-%1 ","A "I o " ++�h A 1-%-K T I r%I I T +1-t_�X n�C-1+ +�V%I-V C'1-%4--1 1-1-A-L"V;1-1" 0]A fl I'll 0 1t.f"I_11 r fl A1d%AILI%JIJ1 LVj Ljl%.� L%.�JIL FVJOi0J1LPJ%.�f-L,Al%-t ua ILJY A"VVjre Ljl%.� "J1OLJ,I%�1LJJJ,5 1011(411 UVGLJJUUI%.� 117"'vil-11,4 rtoo;o+;+ 0,-% +1­%rt++1qCX 1-�,Vln Vln 1 0 0 11 1 V J_cl %J 1,1 11 Ct LJ%JJ a V V'A 11%11�11 V V ki U I L 31, It IIA uiv&%Jul 'k-, VIA"n'll AAI& LAILLA, L11V "IDER AXWETAT& N-11 V%.IVIXJII -ilklylkly L�, ;�7jk"1., 1:1 1%�, 1�,Io U1 Iv U1 t: Nl_�"11111,"11.1.13 13 I.%J I.A 1&S�LTVv"AV I CA,L I Vl 0 1-11 11 H I H+g- VV I I IVI I "F F I I ul I t ZY VV I 1 0 C-1 I-A + f �k ]A v"'CL*",1-%nk t-0 1-%-1,11 t-ck f-1 I I I r"+I rX rl o IF IF 1-%*-em rx el Vrf +-g x T cl-1 f-%I 2h C-1 J. The members of the DRedistricting Commission shall not communicate with any member of the City Council, or their representatives, about any matter related to the nomination process, or the applicants,prior to the presentation of the three applicants to the City Council for approval. 2020-04-21 Agenda Packet, Page 95 of 421 Page 5 of 6 K. The three applicants selected by the first four members of the districting Commission shall be SLIJI)11'littC(] t(,) t1"11C CRUICH 4`61- t1,11C i io:1. "I'lic t1l, CC '!pPj ig�i'Its sll'� appointed, unless the City Council finds by at least four affirmative votes that the approval of one or more of the nominees would be inconsistent with the goals enumerated in Charter Section 300.5(D)(3). L. If,pursuant to Charter Section 30�O�.5(D)(3), the Council must approve one or more additional applicants, in. lieu of those submitted to it for approval, it shall do so at its next City Council meeting,after reviewing the remaining applications. M. Members of the DRedistricting Commission may be removed for cause in accordance with CVMC I 1< I in 2.25.1 1 02.25.105. (Ord.3305 1,2 14). 2.51..0 7O Terms. A. Notwithstanding CVMC 2.25.080,members of each DRedistricting Commission shall serve from the time they are appointed until dissolution of the Ddistricting Commission,pursuant to Charter Section 300.5(J). B. Vacancies on a DRedistricting Commission shall be handled in accordance with Charter Section -2 1< 1 001 A� ,,, 300.5(D)(6) and CVMC I XJWLL2�j urA-fla)-.2.25.105 (Ord.3305 11 2014). 2. 1.080 Meetings. A.Notwithstanding CVMC 2.25.200(A),each DRedistricting Commission shall establish its regular meeting days- (3111%j 1"VU1111"Ll by written resolution, in accordance with CVMC 2.25.200. Regular meetin s shall --gind time and 1-cation g ... be held in Council Chambers, at 276 Fourtenue, in the City. The Redistricting Commission shall hold at least one public meeting in each of the City's Council Districts prior to the development of the Draft D,istricting Plan. All meetings shall be held in accordance with Charter Section 300.5 and any other an-plicable laws or reg lations.jOrd. 3305 § 1,2014). B. The Redistrictin�-,Y Commission shall hold at least two(2)-public meetings between the release of a Draft Districtin�-,f_Plan and approval of a Recommended Districting...Plan; provided, however,that the first such publi i'neetiw,Y__shal.l-notbe held sooner than seven (7) days following the release of a Draft Districting...Plan, in accordance with Charter section 300.,5 and California Elections Code section 21627.1. C. Public meetings should be scheduled in a timeframe that considers maintainlic interest and- minimizin,g..costs associated with conducting---meetings,. 2020-04-21 Agenda Packet, Page 96 of 421 Page 6 of 6 2.51.090 Budget. The City shall ensure that adequate funds are appropriated for the DRedistricting Commission to carry out its duties, including the utilization of independent consultants pursuant to Charter Section 300.5(A)(3). The City Attorney,with input from the City Clerk, shall submit the appropriate budget requests to the Finance Director so that such requests can be included in the City Manager's proposed budget for the fiscal year during which the DRedistricting Commission will be appointed. (Ord.3 305§ 1,20 14). 2.51.100 Implementing procedures. The City Clerk and City Attorney shall be authorized to create and implement administrative rules and 'it, LIT ILI, for procedures as necessary,consistent with this the y Charter, ,n( stalc L'i\k the creation, establishment and management of the DRedistricting Commission. (Ord.3305 § 1,2014). 2020-04-21 Agenda Packet, Page 97 of 421 �j CITY OF CHOLA VISTA � DISTRICTING COMMISSION .. m July 23, 2015 Meeting Agenda Item: Two To: Chula Vista 2020 Redistricting Commission From: Chula Vista 2015 Districting Commission Subject: Report on Best Practices Recommendation: This Report, including all attachments, should be provided to the 2020 Redistricting Commission prior to its Inaugural Meeting. Introduction: Historically, the 2015 Chula Vista Districting Commission ("Districting Commission") was the first insofar as it created the first boundaries to elect members to the City Council by electoral district. However, the 2020 Chula Vista Redistricting Commission ("Redistricting Commission") will also be the first of its kind. It will be an in- dependent commission vested with the sole and exclusive authority to propose a plan to the Chula Vista City Council that specifies "changes to the boundaries of the council dis- tricts." The bylaws (Article IV, section 3) adopted by the Districting Commission on November 107 2014 provide that "[b]efore the current Commission disbands, it shall prepare a set of written recommendations, based on the Commission's experience, for the 2020 Re- districting Commission. These recommendations will be kept with other records of the Commission's work with the Office of the City Clerk." In compliance with this provision, the Districting Commission has prepared the current report on behalf of the Redistricting Commission in order to help the latter with its mission. Background: On March 25, 20141 the Chula Vista City Council approved Ordinance No. 3305, establishing the procedures for creation of a Districting Commission. Interest- ed and eligible residents were invited to apply by April 17, 2014, and over 20 did so. From among these, the Chula Vista Charter Review Commission interviewed 14 on July 29-30, 2014, and narrowed the list to 10. From that pool, four were randomly chosen. In turn, those four selected three others from the remaining 10. The selections were 1 Page 2020-04-21 Agenda Packet Page 98 of 421 �j CITY OF CHOLA VISTA � DISTRICTING COMMISSION .. m July 23, 2015 Meeting Agenda Item: Two based on knowledge, experience and diversity of gender, ethnicity and geography. Ap- pointments of all seven were confirmed by the City Council on August 12, 2014. Analysis: After being appointed, the Districting Commission held its initial meeting on September 11, 2014. At that time, the Commission elected its Chairperson and Vice- Chairperson and received training on the Brown Act and other related matters. Subse- quently, the Commission held its regular meetings in the Council Chambers each month. These meetings were televised via webcast. RECOMMENDATION: City staff should conduct extensive public outreach to en- sure that the candidate pool is geographically diverse, as required by the City Charter. While it may not be possible, depending on the candidate pool, the Commission membership should be composed of at least one person from each Council District. STRONG FOUNDATION You will need a strong foundation upon which to build your commission. We appointed subcommittees at the first full meeting of the Commission. We perhaps could have got- ten off to a smoother start had we scheduled a special meeting to address subcommit- tee reports prior to the next regular meeting. At our inaugural meeting, we were sur- prised to see that the City had already sent out the Requests for Proposals for the map- ping consultant. While timing was an issue and city staff was merely being proactive, the Commission felt that we should be involved in the process from start to finish. RECOMMENDATION: Address certain items as quickly as possible and assign subcommittees to address issues such as timelines, budget, bylaws, and Re- quest for Proposals ("RFP) for the hiring of consultants. 2 � Page 2020-04-21 Agenda Packet Page 99 of 421 �j CITY OF CHOLA VISTA � DISTRICTING COMMISSION .. m July 23, 2015 Meeting Agenda Item: Two RECOMMENDATION: Be involved in the consultant selection process throughout the entire process (ex: drafting the RFP and contract scope of work, interviewing the preferred vendors). BUDGET SUBCOMMITTEE Initially, the Commission was allocated $75,010101 to conduct its affairs. The cost for the contract with the mapping consultant ended up being $68,10,00, leaving only $7,000 for public outreach, staff overtime and other related hard costs. Consequently, the Com- mission, by a unanimous vote, requested a budget increase of $55,500 for a total of $135,,,50O (including $,5,000 contingency) to enable the Commission to hire an outreach consultant to assist its efforts in undertaking a robust public outreach/communications campaign. This request was presented to the City Council on December 16, 2014, but was denied due to a lack of four affirmative votes. On January 27, 2015, the City Coun- cil reconsidered the budget increase at which time it was presented the Draft Frame- work of the Outreach/Communications Strategic Work Plan developed by the Commis- sion. The budget request was subsequently approved. With this budget increase, an open bid process was conducted by City staff for the outreach consultant. Translation services are not only valuable to the residents of Chula Vista but may be required by law. Keep in mind that translation costs will be needed for both verbal and written translations. Video recording of the Districting Commission meetings (at $4010, per meeting) initially came from the Districting Commission budget but was later covered by the city. 3 � Page 2020-04-21 Agenda Packet Page 100 of 421 �j CITY OF CHOLA VISTA � DISTRICTING COMMISSION .. m July 23, 2015 Meeting Agenda Item: Two RECOMMENDATION: If necessary, lobby vigorously at the early stages of the process for an adequate budget to address all hard costs. The revised budget of $135,500, should be used as a baseline for discussion and analysis. RECOMMENDATION: The total budget should include funds to provide for admin- istrative staff support to augment that provided by existing City staff. Examples of duties would include preparing meeting minutes, commission reports, drafting contracts, updating communication logs, etc. This will alleviate the burden placed on City staff as well as the Commission Chair. BYLAWS SUBCOMMITTEE In order to maximize transparency and minimize outside political influences, the District- ing Commission adopted a set of bylaws. The bylaws were drafted by the Bylaws Sub- committee and approved by the Districting Commission. The fact that these bylaws occasioned little if any controversy after their adoption sug- gests that they worked well In particular, we would like to call favorable attention to Ar- ticle III (Communications). Section 2 of this article (public disclosure of communications by Commission members with representatives of organizations or interest groups) oc- casioned considerable debate before its adoption, but little if any thereafter. Other arti- cles also operated with few or no problems, except that it proved impractical to maintain accurate tallies of attendance at meetings (Article IV, section 1), and so these were not included in the minutes. Article V, section 2 (suspension of the bylaws) and section 3 (amendments to the bylaws) weren't needed, but could well be in the future. RECOMMENDATION: Adopt similar bylaws of the Districting Commission. For violations of the bylaws, add a penalty clause such as censure or, for a grievous violation, recommend to the City Council possible removal from the Commission. 4 � Page 2020-04-21 Agenda Packet Page 101 of 421 �j CITY OF CHOLA VISTA � DISTRICTING COMMISSION .. m July 23, 2015 Meeting Agenda Item: Two Any action in this regard should be by majority vote and in compliance with exist- ing provisions of the Municipal Code. CONSULTANT RFP SUBCOMMITTEE The Districting Commission bifurcated the consultancy RFP to allow the Commission to select the mapping and outreach consultants separately. Our initial RFP contemplated choosing one consultant for both purposes. RECOMMENDATION: Separate the mapping and outreach consultant contracts. In choosing the outreach consultant, conduct a vetting process that will strike a balance between having consultants with a detailed knowledge of Chula Vista, and having consultants who are free of local entanglements that might compro- mise objectivity(which maybe revealed by the contract disclosure documents). STRATEGIC PLAN (TIMELINE) SUBCOMMITTEE At the beginning, the Districting Commission established a clear timeline in order to en- sure that deadlines were adhered to. While the Commission completed its mission as it had originally scheduled, since meetings were first held only once a month, it took a while to get up to speed. RECOMMENDATION: Schedule two Redistricting Commission meetings a month to start. Later, when it is time to do public workshops, schedule multiple work- shops in one week to maintain public interest and keep travel costs (if any) low Ira for the mapping consultant. S � Page 2020-04-21 Agenda Packet Page 102 of 421 �j CITY OF CHOLA VISTA � DISTRICTING COMMISSION .. m July 23, 2015 Meeting Agenda Item: Two ASSISTANCE The Districting Commission found the assistance from city staff invaluable. Specifically, the Communications Director and the Assistant City Attorney contributed countless hours (many after-hours) to make sure that the process was the best that it could be. Through an open bid process conducted by City staff, the consulting firm of Q2 Data and Research, LLC was selected by the Commission to serve as the mapping consult- ant. This firm had substantial experience and had recently been hired by the City of Es- condido to assist the Independent Districting Commission in creating its City Council district maps. The Q2 contract was subsequently approved by the City Council. The firm of Southwest Strategies, LLC was selected by the Commission for public out- reach. The firm was paid $36,,000 for its services. An additional $8,,01010 was paid to a subcontractor for translation services in multiple languages at the ten public workshops. In conjunction with the Communications Director and an Outreach Subcommittee, Southwest Strategies took care of: • media purchases • media interviews • collateral material (professionally translated into Spanish) • public outreach workshop schedule • public outreach workshop location reservations • professional Spanish translating services during public workshops RECOMMENDATION: Adopt a similar Outreach/Communications Strategic Work Framework to guide the Commission, consultant and City staff in its efforts to promote and ensure robust community involvement (as discussed further in this report). 6 � Page 2020-04-21 Agenda Packet Page 103 of 421 �j CITY OF CHOLA VISTA � DISTRICTING COMMISSION .. m July 23, 2015 Meeting Agenda Item: Two PROCESS Initial Tasks The first regular Districting Commission meeting was held in the Police Station's confer- ence room but this location was criticized for lack of adequate parking, for the fact that front doors were locked during the meeting, and for the fact that some residents stated that they felt intimidated by the location. We initially considered holding regular meetings in other kinds of venues, but soon real- ized that Council chambers provided a neutral location that is well known, provides ad- equate free parking, can handle large crowds and is set up for audio and video record- ing of meetings. Special meetings (workshops) to elicit public testimony, on the other hand, were held in various parts of the city, both during the evening on weekdays and during the day on two Saturdays. We began our work at a time when the City website was undergoing major reconstruc- tion. Despite herculean effort by the Webmaster, this slowed down the process of mak- ing materials available. Additionally, it made accessing key documents harder to find on the City's website dedicated to the Redistricting Commission. It should be possible for visitors to the Commission's home page to be a click or tap away from such things as the Commission bylaws, and public comments (including maps submitted by individuals and groups). As it was, these documents could be found only by going through often extensive meeting materials. While the interactive Google map made available on the Commission website was help- ful for the general public to identify communities of interest, it was of limited value in drawing district lines. Individuals and groups with independent access to the necessary software might enjoy disproportionate influence. Appropriately, such individuals and 7 � Page 2020-04-21 Agenda Packet Page 104 of 421 �j CITY OF CHOLA VISTA � DISTRICTING COMMISSION .. m July 23, 2015 Meeting Agenda Item: Two groups are not subject to constraints applying to Commissioners regarding partisanship or impact on specific candidates. However, in the interest of transparency, and to pre- vent forbidden considerations from entering through the back door, everything feasible should be done to level the playing field. RECOMMENDATION: Hold regular "standing"meetings in Council chambers and, if possible, start the regular meetings at 6:00 p.m. While no time is suitable for everyone, this time seemed to work fairly well for commissioners and public alike in balancing attendance at meetings with work and family obligations. RECOMMENDATION: As soon as it is practicable, ask the City Attorney's Office to give a training session on the Brown Act, Ethics and other training required of Chula Vista Advisory Commissions. RECOMMENDATION: Request that the City set up the Redistricting Commission website as soon as possible and be designed to promote easy access and trans- parency to the greatest degree possible. RECOMMENDATION: Ask the mapping consuIra ltant (when hired) to give a training session on redistricting fundamentals (ex.- Federal Voting Rights Act, etc.). RECOMMENDATION: Ask the mapping consuIra ltant to provide high quality user- friendly mapping tools that can be used by Commissioners and members of the public prior to mapping meetings. If the mapping software can be provided at low cost (based on licensing agreement), the software should be made available for home use by all concerned. 8 � Pagell 2020-04-21 Agenda Packet Page 105 of 421 �j CITY OF CHOLA VISTA � DISTRICTING COMMISSION .. m July 23, 2015 Meeting Agenda Item: Two Public Workshops / Community Outreach The Districting Commission held two series of five public workshops throughout the city limits. In each series, two workshops were held on the west-side while three were held on the east-side of the city. Translation services were made available in Spanish, Filipi- no, Chinese and Vietnamese at all ten workshops. The dates, times, and locations of these workshops were as follows: Phase April 7 Bonita Vista Middle School @ 6:00pm April 8 Parkway Women's Center @ 6:0101pm April 9 Otay Ranch Library School @ 6:00p April 11 MARC Charter School @ 9:00am Greg Rogers Elementary @ 3:OOpm Phase II May 12 Bonita Vista Middle School @ 6:00pm May 13 Rosebank Elementary @ 6:00pm May 14 Camarena Elementary @ 6:00pm May 16 MARC Charter School @ 9:0101am Greg Rogers Elementary @ 3:OOpm While most venues (i.e., Bonita Vista Middle School, MARC Charter School, Rosebank Elementary School, Camarena Elementary School, and Greg Rogers Elementary School) worked well, there were a couple of exceptions. Parking for the meeting held at the Parkway Women's Center proved inadequate. Seating was insufficient at the Otay Ranch Library Hub. Also, at this last location, management of the Otay Ranch Town 9 � Pagell 2020-04-21 Agenda Packet Page 106 of 421 �j CITY OF CHOLA VISTA � DISTRICTING COMMISSION .. m July 23, 2015 Meeting Agenda Item: Two Center would not allow posting of signs directing people to the meeting location, proba- bly causing a number to arrive late. The primary objective of the Phase I Public Workshops was to solicit public testimony on the identification of Communities of Interest (COls); which is one of the criteria set forth in the City Charter. During the workshops, the Commission received testimony on a wide array of COIs identified throughout the City, including various themes for both the east and west side Chula Vista. The mapping consultant used that testimony to cre- ate the COIs. It should pointed out that a Community of Interest (COI) could be created or identified based on the testimony of only one or individual or the collective testimony of 50 people with the testimonies of both given equal weight. Toolkits were made available to workshop participants in the above-listed languages as well as in English. The toolkits consisted of history and process overview, instructions and forms to identify, formulate and submit communities of interest (COls), contact in- formation, and frequently asked questions (FAQs). On April 23 & 24, 2015, the Commission held Special Meetings to deliberate on the formation of the Draft Districting Plan. The primary objective of the Phase II Public Workshops was to solicit public testimony on the Draft Districting Plan and its impact on previously identified communities of inter- est. On June 8, 2015) the Commission held a Special Meeting to deliberate on the formation of the Recommended Districting Plan. Public testimony was provided by all interested parties present. As before, the City Attorney, in consultation with Q2, provided a memo- randum with suggested guidelines regarding the process for creating the Recommend- ed Districting Plan, including the assignment of numbers. lO � Pagell 2020-04-21 Agenda Packet Page 107 of 421 �j CITY OF CHOLA VISTA � DISTRICTING COMMISSION .. m July 23, 2015 Meeting Agenda Item: Two On June 11, 2015, the Commission reconvened its Special Meeting to deliberate on the assignment of numbers to the districts of the Recommended Districting Plan. As provid- ed in Section 300.5(K)(2) of the City Charter, beginning 2016, Council Districts 3 and 4 are to transition to the by-district election process. Council Districts 1 and 2 are to transi- tion to the by-district election process in 2018. RECOMMENDATION: Continue the practice of holding two series of public work- shops (consisting of no less than five public workshops each) in diverse loca- tions in ADA-compliant facilities throughout Chula Vista. Ensure afour-week break between adoption of Draft Districting Plan and second series of public workshops. RECOMMENDATION: Seek advice and data from the San Diego County Regis- trar's Oce in providing translation services i ffin appropriate languages at all workshops and in written collateral materials. RECOMMENDATION: Encourage written and oral public testimony in the Native language of participants. Ensure simultaneous English translation for Commis- sioners. Additionally, work with the outreach consultant to translate to English written and oral public testimony given or submitted in other languages. RECOMMENDATION Spend some effort on clarifying, for the public and the Commission itself, the definition of Communities of Interest (COls), and the means of identifying them. Use the workshops as fact-finding missions but keep in mind that COI public testimony is just one factor (among several) that you will use in deciding where to draw the lines, as required by the City Charter. 11 Page 2020-04-21 Agenda Packet Page 108 of 421 �j CITY OF CHOLA VISTA � DISTRICTING COMMISSION .. m July 23, 2015 Meeting Agenda Item: Two RECOMMENDATION: In the interest of respecting privacy concerns, make clear to those commenting at workshops that testimony will be recorded in audio and video form, broadcast over local cable television, and available on the City web- site. This should be done in a low key manner so that the effect is to inform rather than to intimidate. In his or her introductory comments at workshops, the Com- mission Chair might simply note that the meeting is being recorded and will be available on the website. RECOMMENDATION: Make clear to all concerned throughout the process that the proceedings will be guided by two main principles: transparency and inclusive- ness. RECOMMENDATION: Carefully weigh the pros and cons of having more than one Draft Districting Plan for review and comment by the general public. This matter received extensive discussion by the Commission and City staff: . After much debate, the Districting Commission decided to go with one draft map. The Redis- tricting Commission should have this same discussion early on the process. Attachments: Final report to the City Council, dated June 24, 2015 Bylaws Final Budget Mapping and Outreach Consultant Contract Scope of Work Outreach/Communications Strategic Framework Mapping and Outreach Consultant RFPs Attendance at workshops Number of people using translation services at workshops 12Page 2020-04-21 Agenda Packet Page 109 of 421 o TY OF CHULA VISTA DISTRICTING COMMISSION IIIIIIIIIII I d a June 24, 2015 Meeting i Agenda Item: To: Chula 'Vista City Council From: Chula Vista Districting Commission Subject: Recommended Dllostriotiiing Plan Recommendation: City Council adopt the Recommended Dilstricting Plan submitted by the D�'iistriicti ng Commission. Introduction: Pursuant to Section 300.5(G)(5) of the City Charter, this report describes the process, criteria and evidence used by the Districting Commission in its preparation of the Recommended Plan. Background: The Districting Commission held its Inaugural Meeting on September 11, 2014 at the Police Department Headquarters. At that time, the Commission elected its Chairperson and 'Vice-Chairperson and received training on the Brown Act and ether related matters. Since the Inaugural Meeting, the Commission has held its Regular Meetings in the Council Chambers each monththereafter. These meetings have been televised via webcast. At these meetings, the Commission has received testimony from past members of the California Districting Commission and the Escondido D�'iistriicting Commission, developed its by-laws, received reports from assigned Subcommitteesi on such matters as the Commission's budget, public outreach and RFPs for the hiring of the mapping and outreach consultants, as well as received training on the "Voting Rights Act, etc. Through an open bid process conducted by City staff, the consulting firm of Q2 Data and FResearch, LLC was selected by the Commission to serve as the mapping consultant. This firm has substantial experience and was recently hired by the City of Escondido to assist the Independent Districting Commission in creating its City Council district maps. The Q2 contract was subsequently approved by the City Council. Initially, the Commission was allocated $75,0010 to conduct its affairs. The cost for the 2 contract was$68,000, leaving only$7,0010 for public outreach, staff overtime and other related costs. Consequently, the Commission, by a unanimous vote, requested a budget increase of$55,500 to enable the Commission to hire an outreach consultant to assist its efforts in undertaking a robust public outreach/communications campaign. This request was presented to the City Council on December 10, 2014, but was denied due toa lack of four affirmative votes. On January 27, 2015, the City Council reconsidered the budget increase at which time it was presented the Draft Framework of the utre�ach/Communications Strategic work Plan developed by the Commission. The budget request was subsequently approved. with this budget increase, an open bid It should be noted that the Commis,on invited representatives from the community noon-profit organizations imentioned in this report to provide input at the Subcommittee meetings. 2020-04-21 Agenda Packet Page 110 of 421. o TY of CHULA VISTA DISTRICTING COMMISSION IIIIIIIIIII I d a June 24, 2015 Meeting i Agenda Item: process was conducted by city staff for the outreach consultant. The firm of ,southwest Strategies, LLC was selected by the commission. The firm was paid $36,000 for its services. An additional $8,000 was paid for translation services at the 10 public workshops. Analysis Pubilloc outreach/Corn a n'i cati'con -- The Districting Commission held two series of five public workshops throughout the city limits. I n each series, two workshops were held on the west-side while three were held on the east-side of the city. Translation services were made available in Spanish, Filipino, Chinese and Vietnamese at all ten workshops. Provided below is a table listing the date, time and location of these workshops: WIN ,Wm 'ilill` Bonita Vista Middle Parkway Women's Otay Ranch Library— MAAC Charter School School @ 6:00pm center @ :oopm Hub @6:00,pm @ g ooam. Greg IRogers Elementary @ :oopm Bonita Vista Middle RosebMank Elementary Camarena IElementary MAAC. Charter School School @ :00pm @ :00pm @ 6:00pm @ 9:00am. Greg Rogers Elementary @ 3:00,pm Toolkits were made available toworkshop participants in the above-listed languages as well as in English. The, toolkits consisted of history and process overview, instructions and forms to identify, formulate and submit communities of interest (cols), contact information, and frequently asked questions (FAQs). Provided as Attachment E are the performance metrics of outreach/Communications ,Strategic Work Plan. Development of Draft Rlan The primary objective of the Phase I Public workshops was to solicit public testimony on the identification of communities of interest (cols); which is one of the criterions set forth in the City charter. During the workshops, the Commission received testimony on a wide array of cols identified throughout the city, including various themes for both the east and west side Chula Vista. 2020-04-21 Agenda Packet Page 111 of 421. o TY of cHULA VISTA DISTRICTING COMMISSION IIIIIIIIIII I d a June 24, 2015 Meeting i Agenda Item: On the east, the principal col presented to the commission was the Asian Pacific American cultural Economic(APACE) corridor. This iidentified corridor begins from Greg Rogers Elementary down toEast Palomar street eastward to La Media and northward to Bonita Vista Middle School. A centerpiece of the APACE Corridor was southwestern Community college. considerable testimony (e.g., oral, written and via petition) was provided by representatives of Asian/Pacific Islander (API) nen-profits2 and residents of Chula vista in support of the APACE corridor. On the west, several cols were presented addressing the southwest section of the city. Principal among these was the former 3.5 square miles of unincorporated area formerly Known as Montgomery omery which was annexed bythe city in 1986. considerable testimony (e.g., oral and written) was provided by members of the southwest civic Association and residents of this community. On April 23 & 24, 2015, the commission held special Meetings to deliberate on the formation of the Draft Districting Plan based on these cols, and the criteria enumerated in the charter. Public testimony was provided by all interested parties present. At the April 23rd meeting, a map and corresponding report was formally introduced by a group called the Neighborhood Unity Districting coalition. This coalition is composed of non- profit representatives3 and residents of Chula Vista. The city Attorney, in consultation with Q2, provided a memorandum with suggested guidelines regarding the process for creating the Draft. Districting Plan. These guidelines, along with others recommended by the chairperson, were approved by the commission. Q2 displayed various maps based on the cols and assisted the commission in the development and evaluation of a series of`preliminary"' maps. The commission attempted to develop two Draft Districting Plans four consideration by the general public during the Phase Il public workshops. However, the commission later opted, on a vote of 5.2, to approve only one Draft Plan. Provided as Attachment B, is the Draft Districting Plan that was approved by a -1 vote of the Commission for dissemination to the general public. The districts were diistiingu'iished solely by color. Development of Recommended Plan — D The community-based neon-profits inclludle the Asian Pacific Americans coalition of San Diego county (AIPAc); council for Teaching Filipino Language and cu�ltu�re (FTFLC); Fillipin�o American (Educators Association of San Diego county(FIILAMEDA); Pilipino American Youth organization(PAYO); office of the Honorary Philippine Consulate General, San Diego; National Federation of Filipino American Associations, Region ; Council of Philippine American organizations of San Diego County— civic Education & Policy Advocacy Network (CEPA NIST)and Southwestern center of Asian Pacific American (Law(SCAPAIL). The community-based non-profits include Alliance of Californians for Community Empowerment(ACCE), Adan Pacific American ILabor Alliance(APALA),l Black American Political Association of California(BAPAC) and center on Policy Initiatives (CPI),. 2020-04-21 Agenda Packet Page 1].2 of 421. o TY of cHULA VISTA 'w W°rrr,'J4R rDISTRICTING COMMISSION IIIIIIIIIII I d a June 24, 2015 Meeting i Agenda Item: The primary objective of the Phase II Public workshops was to solicit pubil c testimony on the Draft Districting Plan and its impact on previously identified communities of interest. During the workshops, members of the API community who supported the APACE Corridor introduced a modification to the Draft Districting Plan which included one additional census block (1054). The inclusion of this census block would incorporate the area designated for the proposed university campus planned for Chula "Vista. The Neighborhood Unity Districting coalition introduced a modified version of its original map that incorporated elements of the Draft Districting Plan as well. Considerable testimony was provided by residents of Chula Vista including by many in support of these maps. Testimony in favor of these maps included oral and written testimony as well as petitions. On June 8,, 2015, the commission held a Special Meeting to deliberate on the formation of the Recommended Districting Plan. Public testimony was provided by all interested parties present. As before, the city Attorney, in consultation with Q2, provided a memorandum with suggested guidelines regarding the process for creating the Recommended Districting Plan, including the, assignment of numbers. During its deliberations, the, Commission considered a new it alternative"' map that was introduced by commissioner Goddard. The map differed from the publicized Graft Districting Plan. The Commission considered the reap but, ultimately, it did not darner the five votes necessary to advance it to the city council as the Recommended Districting Plan. Some of the concerns voiced during the Commission''s discussion of the map were- 1) its being so different from the pubilcized Draft Plan and its introduction late in the process might necessitate the Commission reconvening additional meetings to receive further public testimony at additional costs; and 2 the process could delay submission of the Recommended Plan to the city council. Consequently, the Commission returned to considering proposed modifications to the Draft Districting Plan. After lengthy discussion and compromise on behalf of,all interested parties, the commission, by a vote of �-2, approved the Recommended Districting Plan which its provided as Attachment c to this report. Provided as Attachment A is a dissenting statement by Commissioner Goddard on the selection of the Recommended Plan. The Draft and Recommended Plans are based on the 2010 decennial census data and conform to the requirement of no greater than +5% deviation between districts. In the development of both Plans, the commission also considered the citizen Voting Age Population (CVAP) which comes from the annual American community Survey. A breakdown ofthese statistics is provided in Attachment D. In adopting the Recommended Districting, Plan, the olmm�ission found that it conformed to the criteria set forth in charter Section 300 (F , specifically that the boundaries:1 2020-04-21 Agenda Packet, Page 1].3 of 421. o TY OF CHULA VISTA 'w W°rrr,'J4R rDISTRICTING COMMISSION IIIIIIIIIII I d a ,June 24, 2015 Meeting i Agenda Item: 1 Result in districts that have reasonably equal populations; 2. Be geographically compact and contiguous; and 3. Follow visible natural and man-made features, street lines ander City boundary lines whenever possible; and 4. Respect communities of interest to the extent practicable; and 5. Be drawn without regard four advantage or disadvantage to incumbents or challengers; and 0. Bedrawn without regard four advantage or disadvantage to any political party. On Jiune 11, 2015, the Commission reconvened its special Meeting to deliberate on the assignment of numbers to the districts of the Recommended Districting Plan. As provided in section 300.5(K)(2) of the City Charter, begiinning 2010„ Council Districts 3 and 4 are to transition to the by-district election process. Council Districts 1 and 2 are to transition to the bly-d istrict election process in 2018. During the meeting, three possible options were presented to the Commission by the City Attorney. They included pure, controlled and informed randomness. Thee City Attorney explained the legal parameters governing the Commission within each option. The Commission determined that, based on public testimony received by the Commission during the 10 workshops and Commission meetings, there was a compelling basis to ensure that the southwestern district (blue) and the southeastern district (green) be the first to have representatives elected to the Council. As a result, the Commission voted 6- 1 to assign numbers 3 and 4 to those districts, randomly. Accordingly, the green and blue districts were randomly designated districts 3 and 4„ respectively. The Commission then randomly assigned numbers 1 and 2 to the, purpiile (northeast) and orange (northwest), respectively. Concluusion�. Pursuant to section 300.5fl, the Recommended Plan fully complies with the criteria set forth therein. Principal among these are: reasonably equal populations; compactness and contiguity; boundaries that follow visible natural and man-made features, and street lines; ,and respecting communities of interest — to the extent ,practicable.. Additionally, the boundaries, were drawn and numbers assigined by the Commission with no regard to incumbents, challengers or political parties.. AttachmenIts A — Dissenting Opin�ion by Commissioner Goddard B — Graft District Plan C Recommended Plan D statistical Breakdown for Draft and Recommended Districting Plans. E — utreach/Com�munications strategic °Work. Plan Performance Metrics 2020-04-21 Agenda Packet, Page 1].4 of 421. ATTACHMENT A DISSENTING STATEMENT OF COMMISSIONER CHERYL GODDARD June 17', 2015 1 dissent from the Commission's decision to approve the Recommended Districting Plan, attached as, Exhibit A to Resolution 2015-005 because, I believe, the Recommended Districting Plan does not adhere to respecting communities of interest tote extent practicable as outlined as a criterion per Charter section 3010.5F. From the onset of the districting process, the Commission stressed the importance of public outreach and solicitation of comments and testimony from Chula Vista presidents defining their communities of interest. The Commission regarded this process component so highly that on December 16, 2014 (Item 20), City staff and the Commission requested a budget increase of$55,500 from $7'5,000 to $130,500, in order to undertake a robust and more inclusive community outreach efforts. This item was continued to January 23, 2015 (item 9) where the budget increase was approved. The iincreased budget allowed for 10 public workshops and secured multi-lingual translation services to provide simultaneous translation at all 10 public outreach workshops. City staff along with the outreach consultant, Southwest Strategies, heavily publicized the districting process which resulted in receiving nearly 3010 comments, during the public commenting/testimony period. Of the nearly 3010 comments received, there were two main groups that brought forward proposed district lines for eastern Chula Vista. One was, the Asian Pacific Islander community and the other was, the Neighborhood Unity Coalition. During the June 8th Districting, Commission meeting, the Commission)I S goal was to modify the Draft Districting Plan dated April 25,1 2015 used on comments and testimony received after the release of the Draft Plan. I attended all, 10 public workshops, Districting Commission meetings, and reviewed all public comments received since the formation of the Commission. Upon review of all testimony and public comments received, I proposed district lines that I believe respected the communities of interest to the extent practicable. This proposed district map received a vote of 4-3, to move forward as the Recommended Districting Plan. As we needed five votes to affirm the motion, the motion faiiled�. The Commission then considered the proposed Neighborhood Unity Coalition map and modified the map to combine some aspects of the Asian Pacific Islander proposed map. This modified Neighborhood Unity Coalition map received a vote of 5-2 and was approved as the Recommended Districting Plan. The Recommended Districting Plan splits, communities of interest heard by a number of community members including 1) Keep the Rancho Del Rey community whole (including Rancho Del Rey Middle School, Southwestern College, and Voyager Park), 2) Rancho Del Rey is unique from Eastlake, and 3) Windingwalk and Eastlake interests are similar. I believe the proposed Neighborhood Unity Coalition and Asian Pacific Islander maps were too heavily relied upon for drawing the districting lines resulting in the process not respectiing the commurn i�ti�es of interests of those community members, who provided testimony and comments as individuals and not as an organized group,. Understanding that"respecting communities of interest to the extent practicable" is a subjective matter, I do agree that the Recommended Districting Plan meets all other criterion set forth under Charter section 300.517. Commissioner Korey agrees with this dissenting comment as it relates to map boundaries and its impact on communities of interest. 2020-04-21 Agenda Packet, Page 1]5 of 421 ATTACHMENT E DRAFT DISTRICTING PLAN FGhula Vistams rice"inC mm*ss1 III � � � IIII11 , gy Drift Districting rilan - 04/25/2015 1 � IIII I i IIII i ., //�/�j/ rrrr%r;,,ii�l(�/,lir//�l��Ji.:✓�//i�/�/i 'ii iii i I � � f V I, i u. P I, 6 i iii / a i I I ..1.✓„. � /f,....fi,lin 1✓. .i,///-.9� .,.. i,, �� � �� r l fir � I�/ ✓.i� .,; !, ,, i r i I f � { I 4- II� N �,,,,,,,- a r it„iii f,./ ✓� /�r„ �,,,,.�,�.....li iii G .,... T �,f ,,� ,1 0� I ✓ T�,,., 1 i � i ,/, ;s i1 ail„✓., r r,,,, "." ,il I I I V I i l I i I I I i� � 1, I 111111. T l T i I I i f l it f T t TT T s i T i � (T I iii�r✓„i �„ ' i I i I l o l l I I, I li I,. .l I I Ti ;. t�; Chula Vista f, m ff IIII IG r. FE 1.5 „f i „s i s e 15 miles i 2020-04-21 Agenda Packet Page 1].6 of 421. ATTACHMENT C RECOMMENDED DISTRICTING PLAID ... .....................................- Chula V°'spa l istricting,Commission nded ,_ii'st r'liting Plan 1 V' 1 as/�1ia fi �I it a Ii l ^ i IIIA J I I '1111 l� I I iI i I 11 i 9 �v wf i i i �u I � it 1, f � 1 a a a a i a 1 � f �1 ,t VIIIIIII� UUl a i li I I i ,.I � I I Vd� II. �r 1 VI d i �y i i i r � p I N� f I X11 I M III II t i I u .u lu` II,d I JI� I ri I� i a ill II it N' I MY� � u i 111 f ff .lti 4 i I i I ilii i iiVIIN.,10�� 1.II if . c� 1 l , i e ate„ I f i' G Chula Vistal e miles 1A��J a rcoi 2020-04-21 Agenda Packet, Page 1].7 of 421. ATTACHMENT D STATISTICAL BREAKDOWN OF DRAFT AND RECOMMENDED DST ICTINt LANS Chula Vista Districting Commission Draft Districting Plan-District Statistics ....... ........................................................ Tota I % %Lati no %Asian %Black %1 hito District Population Deviation 9/61-atino I/oAsian I/oBlack I/oWhite CVAP CVAP CVAP CVAP PA/ IN N 0 , �/#/f/ No, Pro ////*0/0 PURPLE 61,952 1.60% 46.96% 21.53% 4.84% 24.73% 42.18% 20.95 7.08% 28.33% 16.68, 67 1. FBLUE 60,1066, *0,020/o, % 511.18,110/0 3,"0%, 14.41% 6.53/ 3.46% 2 96 -2.668 63.74% 6.53% 1 40�a 51-66% 7.96% 5.20% 3172% OMNGE, 5 2 Data Sources:,, (1)2010 Census Redistricting Data[P.L. 94-171] Summary File, U.S. Census Bureau (2)2009-2013 American Community Survey-5 Year Estimates, Chula Vista Districting Commission Recommended Districting Plan - District Statistics FO/0 Total % %Latina %Asian %Black 06 kite District Population [Deviation %Latino %Asian %Black %White CVAP CVAP CVAP AP 1 6.15% 24.94% GREEN 600384 1-0.98% 1 46.47% 27.29% 5.66% 8.290 6 46'.15% 26.319 o PURPLE 623401 2.33% 47.46% 20.94% 4.67% 25.05% 41.82% 20.67% 6.44% 29.63% 67 11% '553% 1.9 43LU15' 60,19,66 -0.02% 75'.68% 5.18% 3.44%, 86 55. 3.46% 2, 66/6 ORANGE 601,165, 63.58%, 6.590/6 4.111 87%/' 61.66% 5.116%, 33.70% Data Sources: (1)2010,Census Redistricting Data P.L. 94-171] Summary File, U.S., Census Bureau (2)2009-20113 American Community Survey-5 Year Estimates 2020-04-21 Agenda Packet, Page 1]8 of 421 ATTACHMENT E OUTREACH/COMMUNICATIONS STRATEGIC WORPLAN PERFORMANCE METRICS WORKSHOPS • 10 public workshops held: five workshops were held in April; five workshops were held in May • 3001+ participated in workshops with 242 people signing in. Translation Services All printed materials, were provided in English, Spanish, Filipino, Chinese and Vietnamese. Simultaneous translatlon in Spanish, Filipino, Chinese and Vietnamese was provided at all 10 public workshops. COMMENTS Nearly 3,00 comments — includes written comments or COI maps received, those who signed petitions, and those who provided Public Testimony ADVERTISING Advertising was, featured in various publications to promote each series of workshops. The pulblcations were selected to reach the variety of communities in Chula Vista. Publications: • Star News • Voice and Viewpoint • El Latino 0 Filip1no Press • Epoch Times • Asian Journal • Nguoi Viet Today • Our Hometown MEDIA OUTREACH/COVERAGE Press Releases • Media Advisory re: public input workshops (April) • Media Advisory re: line drawing workshops (April) • Press Release Draft Districting Plan released (April) • Star News Op-Ed authored by Jerome Torres and Rey Monzon (April) • Media Advisory: public input workshops (May) • Media Advisory Finalizing Recommended Plan (June) • Press Release: Recommended Plan Developed (June) 2020-04-21 Agenda Packet Page 1]9 of 421 Media Coverage • January 9 — El Latino, Dis,cuten presupuesto • January 29 — Union Tribune, C.V. Voting district panel gets new member • January 30 — Star News, New commissioner • March 7 — Star News, Coalition's Aim pis to influence representation • March 20 — San Diego Free Press, Chula Vista Transitions to District Elections • April 2 — Union Tribune, Feedback sought on CV's districting • April 10 — La Prensa, Chula Vista Districting Commission Public Workshops Scheduled • April 11 — Star News, Residents voice interests in forum on district boundaries • April 15 — El Latino, Minima participacion • April 21 — Star News,) Choose to participate in guiding Chula Vista history by Jerome, Torres and Rey Monzon • April 25 — 92.5 radio program — Commissioner Bill Richter • April 30 — Univision radio program — Commissioner Bernardo Vasquez • April 30 — 1 ONews segment with Joe Little Chair Jerome Torres • April 30 — El Latino, Respetar diversidad • May 1 — Union Tribune, Voting district map open for review • May 2 — Star News, Board public closer to drawing dividing lines, • May 12 — Univision 17 KBNT Suzy Villegas, Southwest Strategies • May 15 — Star News, Residents chime in over ways to divide City • May 19 — El Latino, Oportunid�ad historic • June 7 — Union Tribune,, New voting districts get final look • June 17 — El Latino, Notables diferencias • June 17 — Union Tribune, Commission Oks plan for city's council districts • June 18 — El Latino, 11-lacen historia! Mlembros de la comunidad de Chula Vista al presentarse Plan de Distritacio'n Recomendadol. • June 20 — Star News, Lines drawn, map to council SOCIAL MEDIA Robust social media program on Twitter and Facebook Twitter: 45 tweets (all were retweeted) from April — June resulted in estimated 15,750 impressions Facebook: 33 Face,book Posts. Reach 280,000 Facebook ad created to promote May workshops • Posted for one, week May 6 - 16 0 Resulted in 2,254 clicks to the website • Targeted Chula Vista ZIP codes. • Reached 28,000 residents 2020-04-21 Agenda Packet, Page 120 of 421 WEBSITE A dedicated web age was established to include all Districting Commission information at www.chulavistaca.aov/districtina. The we page was updated frequently and users could select from a variety of languages for translation. Information included: • Districting background information • Meeting and workshop information • Districting toolkits in five languages — posted in April then updated in early May after draft Districting Plan developed • Maps: Draft Districting Plan, Recommended Plan, and interactive map displaying draft and recommended boundaries, colors and numbers • Public Comment form • Districting FAQ • Districting Commissioners information • Map and Comment form posted on Districting web page for easy viewingi in all five languages. • Web page visitors — March to June —4,577 OUiTREACH AND ANNOUNCEMENTS • City and Library newsletters distributed information before both workshop series — 24,000 emails for each distribution • City's Community Connection (3,000 emails) newsletter featured information monthly (Mar— June) • Promoted workshops in March insert in City trash bill (d�istributed to 55,000 households) • Sixty-eight member ambassador team conducted outreach to community and business groups • Email newsletter sent to ambassadors and re-sent to thousands of others • Email blasts sent to parents at CVE,SD and SUHSD • PTAs (32) and ELACS (31) received information; presentations at several meetings 0 Rosebank Elementary printed fliers and sent home with students • Coalition members distributed outreach information • Districting flyers and regular updates distributed to La Voz email database, composed of 6,0010 community leaders in Chula Vista and the San Diego region • South Bay Community Services CEO forwarded LA Voz Newsletter to her entire staff • Outreach to South County EDC and South County Albondigas • San Ysidro Health Services outreach workers distributed information in Chula Vista 2020-04-21 Agenda Packet, Page 121 of 421 r1% Fresentations/Events: o Chula Vista Collaborative • CEPA NET meeting • Black American Political Association BA AC • Filipino Educators Meeting • Unity Coalition Meeting • Council for Teaching Filipino Language & Culture • Chula Vista State of the City Address outreach • Third Avenue Village Street Fair • Day of the, Child • Councilmember Pat Aguilar Third Thursday Breakfast o Sweetwater Women's Club o Chula Vista Kiwanis o Eastlake Business Association o May and June - First Friday Breakfast announcements 2020-04-21 Agenda Packet, Page 122 of 421 CITY OF CHULA VISTA DISTRICTING COMMISSION BYLAWS ARTICLE 1: GENERAL Sect1won 1. The Chula Vista Municipal Code (Section 2.25.170) provides, that "[b]oards and commissions, may adopt bylaws, governing the internal conduct of their affairs. The bylaws must be consistent with the City Charter, the Municipal Code, and applicable state law and shall include the method for their amendment.7) Many of the rules governing the internal affairs of the Districting Commission are described in detail in Chapter 300.5 of the Charter of the City of Chula Vista, Section 2.25 of the Chula Vista Municipal Code, and in the City of Chula Vista, Meeting Procedures.- Boards and Commissions. The bylaws listed here are intended to supplement these requirements by spellilng out procedures not already specified. If there is a conflict between these bylaws and the Charter, the Municipal Code, or the City 51 s, Meeting Procedures, those authorities shall prevail over these bylaws,. Section 2. The name of this commission is the City of Chula Vista Districting Commission, hereinafter referred to as the Commission. Sect1won 3. It is the intent of the Commission to perform its duty to ensure fair and equitable districting in conformance with the requirements of the U.S. Constitution, federal statutes, California law (including but not limited to the Brown Act) and the Chula Vista City Charter and Municipal Code. ARTICLE 11: MEETINGS Section 1. The Commission shall make every reasonable effort to have meetings to afford maximum public access to its proceedings. The Commission shall work with City staff to ensure that all Commission meetings are publicized in every reasonable manner. Section 2. Regular Commission meetings shall be held as provided by resolution of the Commission, but this will not preclude additional special meetings as deemed appropriate. These special meetings should be held in different parts of the City as well as at different times in order to allow as many people as possible to participate. Section 3. Commissioners will request acknowledgment from the Chair to speak to an issue. Section 4. Comments by a member of the public are to be limited to three minutes per person for non-agendized items and five minutes for agendized itms. Members of the public may pool their time if so desired up to a ten minute maximum. The person ceding their time must acquiesce orally or in writing. 2020-04-21 Agenda Packet Page 123 of 421 ARTICLE III: COMMUNICATIONS Section 1. Commissioners shall not communicate outside of a public meeting with the mayor or any other member of the Chula Vista City Council, or their representatives, regarding substantive districting matters within the purview of the Commission. Tis provision is not intended to prohibit the discussion of procedural information, such as discussion of ttime, place, and list of items, on the agendas of upcoming meetings., If the Mayor or any member of the City Council, or their representatives wish to present testimony or public comment, such testimony or comment shall only be accepted if it is, presented orally at a public meeting or presented in writing and disclosed to the public either before or during a public meeting of the Commission. This paragraph shall not restrict communications between the Commission and appropriate City staff, including the offices, of the City Attorney, City Manager, and City Clerk. Section 2. Commissioners she publicly disclose, in the form of a log, all substantive communications with representatives of organizations, or interest groups who may have a direct stake in the outcome. This log shall include the name of the person or organization, date of contact, and general description of the communication. The log will be published on the Districting Commission website and regularly updated. Tis provision is not intended to prohibit the discussion of procedural information, such as discussion of the time, place, and list of items, on the agendas of upcoming meetings. Section 3. Requests by journalists for interviews regarding districting issues should be directed to the Chair when possible. This will not prevent other Commissioners from engaging with the public. Commissioners should be encouraged to try to explain positions taken by the full Commission, general legal requirements, or anything else that can help, explain the process to the public, provided that they make clear that they are speaking only for themselves. This includes interaction via social media. Commissioners are also encouraged to attend public meetings that are open to anyone to attend to listen, learn, and bring back information to the full Commission. Commissioners are discouraged from attending any non-public meetings of organizations or interest groups (i.e., meetings not open to the public at large) in order to discuss substantive districting issues. Notwithstanding the foregoing, the Commissioners shall conduct themselves in accordance with the gown Act at all times, including ad er'�ingi to the limitations on the gathering of a majority of members outside of'a noticed, public meeting. 2020-04-21 Agenda Packet, Page 124 of 421 Section 4., There should be a method for the public to communicate with the Commission other than Public Communication at Commission meetings. An address,, telephone number and email address should be published on the Commission website and also distributed when publicIzing Commission meetings. The Commiss,ioln shall work with City staff to ensure that communications received from the public are distributed to all members of the Commission prior to each Commission meeting. ARTICLE IV: RECORDS Section 1. The Commission shall work with City staff to make its best efforts to count the number of members of the public attending a met'iingi and enter such tally into that meeting's, minutes. Section 2. Commission records will be made available to the public in accordance with the California Public Records Act. As many documents as is possible and practicable should be included on the Commission website including bylaws, agendas, minutes, draft maps, videos or audio recordings of past meetings and a list of future meeting times and locations in addition to, its regular meeting time and location). Section 3. Before the current Commission disbands, it shall prepare a set of written recommendations, based on the Commission's experience, for the 202,01 Redistricting Commission. These recommendations will be kept with other records of the Commission's work with the Office of the City Clerk. ARTICLE V. EFFECTIVE DATE, SUSPENSION, AND METHOD OF AMENDMENT Section 1. 'These bylaws shall become effective upon adoption by the affirmative vote of a majority of the entire voting membership, as defined in Chula Vista Municipal Code section 2.25.020.E., of the Commission and do not apply retroactively. Section 2. In an emergency, a portion of these bylaws may be suspended by a unanimous affirmative vote of all members participating at a meeting at which a quorum is present. The motion to suspend shall include the duration of the suspension, and the article(s) and section(s) to which the suspension applies. Section 3. The affirmative vote of a majority of the entire voting membership, as defined in Chula Vista Municipal Code section 2.25.020.E. of the Commission shall be necessary to amend these bylaws. RESOURCES Charter of the City of Chula Vista Services/Administrative Services/city Clerk/PDFs/C VCharter.pdf. Revised November 6, 2012; accessed September 301, 2014. 2020-04-21 Agenda Packet, Page 125 of 421 Chula Vista Municipal Code lhttp-://www.cold ep blishing.com/CA/chulavista.htm�l. Revised August 12, 2014; accessed September 30, 2014. City of Chula Vista, General Rules for Boards and Commissions . 0 Servi I ces/Adminis,trative Services/Cltv— lerk/Boards/P D F/General Ru lesforBoardsandCom missions rev%209-2012".pdf. Revised September 2012; accessed September 30, 2014. City of Chula Vista, Meeting Procedures.- Boards and Commissions, Office of the City Clerk, November 2012 (A summary of Chapter 2.25 of the Municipal Code.) 2020-04-21 Agenda Packet Page 126 of 421 i i i i RESOLUTION NO. 2014-004 RESOLUTION OF THE DISTRICTING COM I IO OF THE CITY OF CHULA VISTA ADOPTING ITS PROPOSED BUDGET AND AUTHORIZING THE COMMISSION � CHA.IRMA. TO: (l) PRESENT SAME To THE CITY COUNCIL; AND II REQUEST BUDGET APPROPRIATIONS, ACCORDINGLY WHEREAS, the City adopted its Fiscal Year 2014-1 in June 2014, including an allocation of$75 000 for the Chula Vista Districting Commission-- and WHEREAS,-the City's full Districting Commission was seated in August 2014, after; the City had adopted its budget for Fiscal Year 2014-15; and WHEREAS, the Commission has met and considered the estimated costs for completing its work during Fiscal Years 2014415 and 2015-16, and WHEREAS, the Commission has determined that additional funds will be necessary in odder to e mplete the:errorit is ehar red with; and WHEREAS,, the Commission has prepared a draft budget and determilled that i t will need additional ftinds, as reflected in theCommission's draft budget} and WHEREAS, the Commission has determined that the Commission Chairman is the appropriate representative to present the budget to the City Council, incoordination with pity staff, and to request that the City make the requisite budget appropriations ons in order to provide the Commission with additional funds, as reflected in the draft Commission budget, NOW, THEREFORE, BE IT RESOLVED by the City Council of the. City of Chula Vista., that it adopts 11-te proposed Commission budget, in the form presented with amendments approved by the Commissioti, 'including subsequent revisions as necessary to reflect award of the consultant contract, as its proposed budget, and authorizes the Corrupt ssion Chairman to present the proposed budget to the City Council and request the necessary budget appropriations. PASSED,APPROVED,AND ADOPTED by the Districting Conunission of the City of Chula Vista, Califomia,this 10'11 day of November,2014,by the following vote: AYES* Commissioners: Chaim Torres, Vice Chair Chavez, Andrews Goddard, Korey,Mon on and Richter NAYESO Cbmrrrissioners: None ABSENT: Commissioners:, None jel ine Tres, aair 2020-04-21 Agenda Packet, Page 127 sof 421 i Resolution leo. Page A.TTTO10 s • I Cheryl Ponds-Poole, ommission Secretary STATE of CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Cheryl Ponds-Poole, Secretary of the Distrieting Commission of the City of Chula Vista, California, do hereby certify that the foregoing Resolution leo. 2014-002 was duly passed, approved, and adopted by the Districting Commission at its regular meeting held on the IOth day of November 2014, Executed this l oth day of November 2014. 3 eryl Ponds-Poole, Commission Secretary • r 3 s I i i I I I f I s 2020-04-21 Agenda Packet Page 128 sof 421 f 3 i % 4 /fitrwft 00 0 00ti /ryti +-�I /y�.4 % % [M,rl-- CD +x ko {.y77r�+1Pyrqr � � 1 1 7 °' i t Q r-[ r-i t-1 1-4 4-J ' t t4 `rI- vl�- A/]- `r� J4 i/1- -L� 'ice i Ln m Ln L ■M LL 0 [ C) I E 1 C) i l I I C) 0 C 0 0 @,f"1 in G) qqtft, R 0 k-I r€ C> 0 C) 0 CD 0 tr] 0 Ln X 0 0 0 0 0 (N 00 C) 00 C) Dal t:t tt m rq rq UD Ln m '�' Ln 4 Q 0 0 r-t a 0 0 LO In Ln LO m m m v All, tn i^ LL 0 C) 0 Ln C) 0 C) 0 Ln Ln 0 Ln LU = If 1 -tY -tom Ar� ir,- -t n -Lf -La -L4 14 ! 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Background: At the November 10 meeting, the Districting Commission, by majority vote, decided to: 1) bifurcate the consultant contract into two parts — mapping and outreach; and ) select Q2 Data and Research, LLC as the mapping consultant to assist the Districting Commission. Additionally, the Commission directed the Chairperson to work with City staff to finalize the scope of work and schedule of performance; and request the mapping consultant's contract be brought forward for approval by the City Council at the next available meeting (which is scheduled to he presented on December 16P 2014). Attached, is an excerpt of the City contract containing the agreed-upon scope of worm and deliverables. Q2 will he paid $68,000 in accordance with its submitted proposal. Analysis: Highlights of the scope of work include: Collaborating with the Outreach Consultant in developing and implementing the Strategic Public Outreach/Communications Work Pian. Establishing Technical Assistance Center(s) (in cooperation with City staff) at a public forum (preferably City Library) to train and assist interested stakeholder groups in the, development of district maps for consideration by the Districting Commission. Conducting in-depth training of the Districting Commission on the Federal and California Doting Fights Acts (VRA) prior to development of district maps} including simulations of VRA violations. Assisting the Districting Commission in developing the required Working Draft Plan for consideration by targeted stakeholders and general public} Recommended District Plan for submission to City Council; and Final District Plan for approval by Commission, if required. Alternative: Mone. 2020-04-21 Agenda Packet gage 1.31 of 421. CITY OF CHULA VISTA DISTRICTING COMMISSION December 8 2014 Meeting jag.N Agenda Item. Q2 Data and Research, LLC Scope of Work and Defiverables 8. Scope of Work and Schedule: A. Detailed Scope of Work: 1. PUBLIC EDUCATION ANIS ENGAGEMENT Consultant shall: a. Collaborate with Outreach Consultant in development and implementation of a multilingual Strategic public Outreach/Communications Work Plan, including attending Commission meetings as required, establishing a timeline for public outreach, identifying venues for public meetings, and creating public education materials. h. Develop informational documents and a Frequently Asked Questions ("FAQ") handout that explains the process, how the public may participate, the districting criteria, and applicable laws and regulations. . Work with City staff to populate Commission website, to the satisfaction of the Commission. do Collaborate with City staff and the City's Outreach Consultant in the establishment of one or more Technical Assistance Centers ("TAC"). Each TAC shall be in a public forum, preferably at City libraries, when feasible. The TACs will be designed to train and assist interested stakeholder groups in the development of public testimony for consideration by the Districting Commission. e. Attend Standing and Special Meetings, as required, to: i. Conduct training sessions on districting process, VRA, districting criteria, and other matters, as directed by Commission, for targeted stakeholders and general public. ii. Solicit, compile and record public input from targeted stakeholders and general public in identifying and addressing communities of common interest and other relevant factors associated with development of districting raps. . COMMISSION TRAINING 4 2020-04-21 Agenda Packet gage 1.32 of 421. r fCITY of CHULA VISTA DISTRICTING OMMISSION December 8, 2014 Meeting Lad M2 S_ Agenda Item: Consultant shall, in cooperation with the City Attorney, conduct in-depth training of the Districting Commission prior to development of district maps. Training shall include: the Federal and California Voting lights Acts (VRA), legal frame ork applicable to districting, City Charter requirements, districting criteria definitions and approaches to line drawing, collection of data, visual presentation of districting software, ability for Commissioners and public to access software, and explanation of "packing" and "cracking," with examples of same from other jurisdictions. 3. DATA, RE-PORTS AND MAPS Consultant shall: a. Gather and test a comprehensive data set of Chula Vista that includes, to the extent available and legally permissible, 2010 (PL94-171) census data, American Community Survey (e.g.., citizen voting age population, etc.), registration and turnout data, zoning maps, school attendance boundaries population and any other applicable demographic information rewired to create the districting raps at the census block level within the geographic boundaries of the City of Chula Dista. The district maps to be included in the Draft, Recommended and Final Districting Plans shall include no district that deviates from the mean district population by more than +/-5% The data set shall be available for download from the Commission website. b. Employ any software necessary, including statistical software and GIs software to create districting maps, analyze census data, statistics and demographics and provide the Commission and City with reports as requested and rewired. c. Assess the jurisdiction to determine whether a racially polarized -voting analysis (IPI) mill have to be performed and advise the City and the Commission of the outcome of the assessment. If, based on that assessment, the Commission or City determines that it is necessary, the Consultant will conduct an RPV vulnerability assessment of past voting patterns of registered voters of Chula Dista. d. Cooperate with City staff in the uploading of all relevant documents, reports and maps to theCity's webpage dedicated to the Districting Commission. e. Assist Commission in preparing report to 2020 Districting Commission. 4; DISTRICTING PLANS 2020-04-21 Agenda Packet Page 133 of 421. ' CITY OF CHULA VISTA DISTRICTING COMMI ION December 8, 2014 Meeting . Agenda Item: Consultant shall: a. pursuant to the City Charter, assist Districting Commission in the development of a: i. Draft Districting Plan (which shall contain preliminary districting maps} a appropriate, based on the Commission's determination in consultation with the Consultant) for distribution to targeted stakeholders and general public; ii. recommended Districting plan, pursuant to the City Charter to be submitted to City Council, and iii. f=inal Districting Plan to be approved by the City Council, or Commission. b. Conduct "real tire" line drawings to create preliminary and final district maps. c. Assist Commission and City staff in preparing report to City Council to accompany the recommended Districting plan. d. Develop all necessary documents for City to submit new Districting plan to Registrar of Voters; draft metes and bounds as required; submit any remaining documents, raps and data to City. e. Assist Commission in considering and responding to City Council reasons for disapproving recommended Districting Man, and approval of same, if necessary. . MEETINGS Consultant shall: a. Ensure that the Project Manager attend at least two of the Districting Commission's public outreach meetings and that at least one Senior Consultant and one Geographic Information System ("GIS") specialist attend all other public outreach meetings (up to eight such meetings). The Senior Consultant shall be available to serve as an informational resource and to provide short districting training to members of the public in advance of collecting public input. The GIS specialist will operate a computer with districting software to show members of the public the areas for which public input is being received. b. Be available for at least two "office hours is before or after each public hearing to work with members of the public individually and male available the districting software on a laptop for development of submissions. 2020-04-21 Agenda Packet Page 134 of 421. ,r CITY of CHULA VISTA DISTRICTING Cold MISSION December 8, 2014 Meeting a agenda Item: c. Participate, remotely} at three regular meetings of the Commission. d. Attend City Council meeting to present Recommended Districting Plan to the Council. B. lute for Commencement of Consultant Services: ( ) Same as Effective Date of Agreement Other: C. bates or Time Limits for Delivery of Deliverables. Deliverable No. 1: By January 31, 2015, Consultant shall complete the following: 1. Public Education (A.1.a.-c., above) 2. Commission Training (A.2.) Deliverable No. : By March 31} 2015} Consultant shall complete the following: 1. Establish Technical Assistance Center (A.l.d.) . Attend Public Meetings and Conduct Training, a necessary and at discretion of Commission, pursuant to .I.e., and .5., above Deliverable No. : By April 30, 2015, Consultant shall complete the following: 1. Attend additional Public Meetings, as necessary and at discretion of Commission, pursuant to .5,, above . Draft Districting Plan, pursuant to A.a.l. and b., above Deliverable No. 4: By May 31, 2015, Consultant shall complete the following.- Recommended ollowing:Recommended Districting Pian and Accompanying Report to the City Council, pursuant to A.4., above Deliverable No. 5: By ,dune 30, 2015, Consultant shall complete the following: Attend City Council Meeting on Recommended Districting Plan and Provide Oral Presentation to Council on same, pursuant to .5,d., above_ Deliverable No. : By November 15, 2015, Consultant shall complete the following: 2020-04-2 Agenda Packet Page 135 of 421 CITY OF CHULA VISTA DISTRICTING 111 ss lO N December 8, 2014 Meeting Agenda Item: 1. Assist Commission in Responding to City Council Reasons for Disapproval of Recommended Districting Plan, if necessary, pursuant to A.4.e., above. . Provide all Documentation Necessary for Submiftal to County Registrar (AAA., above) Deliverable No. 7: By December 30, 2015, Consultant shall complete the following: 1. Assi'st Commission in Preparing Report to 2020 Districting Commission (A.3.e., above) D. Date for completion of all Consultant services.: December 15, 2015. The Deliverables dates set forth above may be adjusted by majority gots of the Commission, and with concurrence of City staff and the Consultant. 2020-04-2 Agenda Packet Page 136 of 421 PROPOSED OUTREACH/COMMUNICATIONS STRATEGIC WORK PLAN FRAMEWORK E'1e'nieni Tasks District Each workshop will be classified as a "Special" Board Meeting thus Commission allowing all members to attend. The March 9 Standing Meeting will be rescheduled to March 23. Number of PHASE 1: Five (5) workshops with two (2) held in West Chula Vista workshops and three (3) held in East Chula Vista. per phase PHASE 11: Same as Phase I (four a total of 10 workshops). Location of Sites to be located east and west of 805 as follows: workshops • West: Two locations — Main Library Auditorium and MAAC Project Charter School • East-. Three locations — Bonita Vista HS, Auditorium, Greg Rogers Elementary Auditorium and Otay Ranch Community Center. Master GENERAL: Weekday meetings will be held at 6:00pm. Schedule On Saturday, two meetings will be held as follows: First meeting — (Dates and 9:00am. locations are Second meeting — 2:00pm. tentative.) PHASE 1: March 11 (filed) — Bonita Vista HS Auditorium March 12 (Thu) — Main Library Auditorium March 14 (Sat) Morning: MAAC Project Charter School Afternoon: Greg Rogers Elementary Auditorium March 16 (Moen) Otay Ranch Community Center 2020-04-21 Agenda Packet Page 137 of 421 ''Element , , Tasks, , , PHASE, II. April 22 (Wed) — Bonita lista Hs Auditorium April 23 (Thu) — Main Library Auditorium April 25 (Sat) Morning: MAAc Project charter school. Afternoon: Coreg Rogers Elementary Auditorium April 2 (Mon) — otay Ranch community center Translation Translation will be provided in Spanish and Filipino for all ten (10) services at workshops. workshops Translation in Vietnamese and Traditional Chinese may be provided if request is made at least 24 hours in advance and sufficient funding is available. Targeted All meetings are open to the general public. Neighborhood schools, stakeholders churches, non-profits and community/business associations will be and general utilized as resources to galvanize attendance to the workshops. This public effort is designed to generate a high level of community awareness and involvement in the districting process. Publicity All main publications to be hand-distributed will be translated in Spanish and Filipino. All publications posted on the District Commission webpage will be translated in Spanish, Filipino, Traditional Chinese and Vietnamese. Publicity All meting notices will be published in English, Spanish, Filipino, Vietnamese and 'Traditional Chinese, and will include a statement in each language that requests for translation services for the meeting must be made at least 24 hours in advance. The draft and final maps , with information about providing input, will be posted at community locations including City hall, libraries,. recreation centers, schools, non-profit locations, and any other venue that agrees to post the information. Depending on which option its adopted, 'to ensure igih turnout, the following mediums will be utilized: City's March 2015 Trash EdiII Insert, Newspaper Ads, Facebook, Twitter, Email Newsletters, etc. 2020-04-21 Agenda Packet, Page 138 of 421. ''Element, , , Tasks, , , Districting A DAC will be centrally located at the Main Library with stations Access included at the South and +stay Ranch branches and, possibly, the Centers Southwestern community college Library. The hours of operation will (DAC) coincide with hours of Libraries. General iinformatioinlassii tan e will be provided by l�ibrary staff during regular business hours. Technics assistance wiill be provided, as requested by appointment du�ring the weeks that workshops are being coneducted . To ensure demand, the DAcs will be highly publicized during both phases. Messaging What 4`universal,, message should we adopt to publicize the workshops and encourage participation of all targeted stakeholders and the generalpublic? 2020-04-21 Agenda Packet, Page 139 o 421. RFP P,01-14/15 Cjw OF CHUB,,VISTA Page 1 REQUEST FOR PROPOSAL (RFP) NOTICE IS HEREBY GIVEN THAT THE CITY OF CHULA VISTA WILL ACCEPT WRITTEN PROPOSALS UNTIL SEPTEMBER 11, 20147 FROM QUALIFIED CONSULTANTS ABLE TO PROVIDE THE FOLLOWING SERVICES: Preparation of the City's Draft, Recommended, and Final Districtin�g Plans to establish electoral districts, including coordination with the City staff and the Districting Commission in conducting public outreach and education, analyzing census data and demographics, complying with the Federal Voting Rights Act and the California Voting Rights Act,and preparing districting maps depicting electoral district lines. INSTRUCTIONS, GENERAL PROVISIONS,SPECIFICATIONS,AND TERMS AND CONDITIONS FOR SUBMITTING A PROPOSAL ARE CONTAINED IN THIS RFP., ALL PROPOSALS MUST BE SUBMITTED TO,SU?I BROOKS AT THE LOCATION LISTED BELOW. PROPOSALS RECEIVED AFTER 12: 00 NOON PST ON SEPTEMBER 11, 2014 WILL NOT BE CONSIDERED. CITY OF CHULA VISTA PURCHASING DIVISION 276 FOURTH AVENUE BLDG A C H U LA VISTA, CA 919101 ATTENTION SUZ11 BROOKS sbroolks(&,ci�-chula-vista-ca.ius Telephone number: 6191-585-5629 Fax number: 619-16911-51419 For questions related to the proposal please email Suzi Brooks. THE CITY RESERVES THE RIGHT TO REJECT ANY OR ALL PROPOSALS RECEIVED, ANY PORTION OF ANY PROPOSAL, AND TO, WAIVE ANY IRREGULARITIES OR INFORMALITIES IN PROPOSALS OR THE RFP PROCESS. Suzanne Brooks Sr. Procurement Specialist Date: August 27, 2014 2020-04-21 Agenda Packet, Page 140 of 421 RFP P,01-14/15 OF CHUB,,VISTA Page 2 Ine City of Chula qVis (uity) is requesting proposals Trom qua ilTiea consuitants to pe or professional services to assist City staff and the Districting Commission in the preparation of a Draft Districting Plan and Recommended Districting Plan to establish four Council districts, yin accordance with Chula Vista City Charter, Section 300.5. Estimated Proposal Timeline Proposals must be received by 12:00 Noon PST on SEPTEMBER 11,1 2014. The consultant selection process will be conducted upon the close of the applicatiion period. Its anticipated that the selected consultant will commence work in October 2014. General Information The City of Chula Vista seeks written proposals from interested and qualified individuals,teams and firms,with expertise in local jurisdiction electoral districting, public outreach and communications,the Federal Voting Rights Act, the California Voting Rights Act, mapping electoral districts and analyzing statistical and census data and demographics, to assist the City in preparing its Draft, Recommended, and Final Districting Plans for establishing electoral districts. The City of Chula Vista Charter was amended in November 2012 to require that the City establish electoral districts from which the City's four City Council members will be elected. The district elections are to be phased-in over two election cycles, beginning with the 2016, elections. Charter Section 300.5., requires the four City Council districts to be established no later than February 1, 2016; however,the City is endeavoring to have the districts established by July 1,2015.'The Charter requires significant public outreach, preparation of a Draft Districting Plan, gnumerous public meetings, preparation of a Recommended Districting Plan to be presented for City Council approval, implementation of the Final Districting Plan, preparation of a report to the City Council to accompany the Recommended Districting Plan, and compliance with established districting criteria.Accordingly, the City seeks a consultant to assist the City's Districting Commission and City staff in this undertaking. Specifications and Scope of Work The consultant will be tasked with working closely with the City's newly-established Districting Commission, and City staff to meet the Charter requirements to establish Council districts,within the established timeframe. Specific tasks will include: 1. Becoming familiar with relevant provisions of the City's Charter and Municipal Code; 2. Attending Districting Commission meetings to assist yin establishing a work plan and time line for establishing four Council Districts by July 1, 2015; 3. Working with City staff and the Districting Commission in developling and implementing a multilingual public outreach and education strategy, to solicit and incorporate public input; 4. Attending public outreach meetings in various areas of the City (the Charter mandates a minimum of four public meetings prior to submitting a Recommended Districting Plan for City Council approval; however, the Districting Commission may choose to, hold additional meetings); 2020-04-21 Agenda Packet, Page 141 of 421 RFP P,01-14/15 OF CHUB,,VISTA Page 3 Assisting Me Districting Commission an City sTT in implementing an open an transparent process that enables public consideration of, and comment on, the drawing of districting lines; 6. Utilizing mapping software and geographic information systems to draw districting lines; 7. Analyzing census data, statistics and demographics; 8. Assisting the Districting Commission in preparing the Draft Districting Plan, Recommended Districting Plan,, and report to the City Council regarding the Recommended Districting Plan, and implementing the Final Districting Plan; 9. Attending City Council meetings, as appropriate (at least one is required under the Charter provisions, additional meetings may be necessary); 10. Assuring that the process, Draft Districting Plan, Recommended Districting Plan and Final Districting Plan are in compliance with the Federal Voting Rights Act, the California Voting Rights Act,, the City Charter, and all other applicable federal, state and local laws; and 11. Assisting the Districting Commission and City staff as, may be required in all facets of developing and implementing the Final Districting Plan. It is anticipated that the Consultant will be able to demonstrate significant experience and expertise in the following areas: public outreach and education regarding electoral districting; the Federal Voting Rights Act, the California Votingi ights Act, and other relevant federal, state and local laws; drawing electoral districts, including utilization of mapping software; understanding and analyzing census data, statistics and demographic information, and using it in the districting process; and working with local governmental agencies. Proposal Form and Content To assist us in the, evaluation process, the followings information is required in your proposal: 1. Cover letter and introduction. 2. Me,thodoloigiy proposed 3. Experience - related to services and other Public Sector Agencies 4. Client References — Provide a list of three to five of your customers for whom you have performed similar services. Clients may be contacted randomly until at least two client references have been contacted. For each client please provide the client name, mailing address, contact name, telephone number and services provided. 5. Consultant Information — Provide information about your firm including: Name, title, address and phone number of the individual authorized to negotiate with the City and contractually bind the consultant • Location • Number of years in business • Number of employees • Resumes of project supervisor and other key staff members or others who will plan and direct activities, especially related to the pertinent experience of each key participant who would work on this project, including any sub-contractors 2020-04-21 Agenda Packet, Page 142 of 421 RFP P,01-14/15 C1W OF CHUB,,VISTA Page 4 • The firm's backgrouind and experience in assist-Ing citles,, counties, school districts or other districts with districting, including the experience of the consultant in projects such as this one • Staff availability • Tentative Scheduile of Performance • Scope of Services • Explanation of the technical approach that is proposed to be employed, to draw the district, boundaries 0 Discussion on how the required information will be gathered and tested for accuracy. • The time constraints involved in the project • Cost— Provide a cost proposal detailing all costs associated with providing the requested services. 6. Supplemental Information Consultants may provide su�pplemental information such as financial reports, brochures, sample work, or other supportinrgi documentation that the vendor believes will assist the City in making its selection. All supplemental information or documentation must be marked as, an appendix., Insurance — Insurance requirements for consultants included in the sample two party agreement that will be required upon award of contract. See Attachment"A". Submission of Proposal Your proposal should be submitted to Suzi Brooks,Senior Procurement Specialist, by SEPTEMBER 11)2014. Submit nine(9)copies of your proposal and one CD. Send in a sealed envelope with the proposal name, proposal number date and time due on the envelope. The mailing address is: Suzi Brooks, Sr. Procurement Specialist City of Chula Vista Purchasing Division 276 Fourth Ave Chula Vista, CA 91910 Questions Any questions you may have pertainingi to this Request for Proposal should be addressed with Suzi Brooks via email. The email address: s,broloks@ci.,chu�la-vista.ca.us 2020-04-21 Agenda Packet, Page 143 of 421 RFP P,01-14/15 OF CHH ,,VISTA Page 5 Proposal Evaluation A committee will evaluate proposals subm�iitted. During the evaluation process, the committee and the City of Chula Vista reserve the right to request additional information or clarification from consultants responding to this RFP. All proposals deemed responsive by the committee will be evaluated using the following criteria (listed in no particular order of importance or value of rating). • Proposed services and methodology • Responsiveness to request • Project cost • Experience as related to this request • Client preference information The City reserves the right to determine the value and importance of the ranking criteria at its discretion. The objective of the committee's review is to evaluate and substantiate how the proposal meets the requirements of the City and to rank the proposals from least qualified to the most qualified in meeting the City's needs for this project. Each consultant will be evaluated on the basis of capabilities described in its written proposal. The consultant that best matches the City of Chula Vista's objectives will be selected. General Information The selected Consultant will be expected to enter into and perform services under a Standard Two-Party Agreement (Attachment"A")with the City of Chula Vista. In the event the Project Manager and the City are unable to agree on the terms of the Agreement, the City reserves the right to reject the proposal. Further, the City reserves the right to accept or reject any or all proposals received as a result of this request, to negotiate with qualified sources, or to cancel in part, or in its entirety, this request for proposal, if it is in the best interest of the City to do so. This is a Request for Proposal (RFP). This RFP does not commit the City to pay any costs incurred for the preparation of the submission of a proposal, or to contract for supplies or services. For a proposal to be considered responsive, all requested information must be submitted. OWNERSHIP OF DOCUMENTS All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems, and any other materials or properties produced for this project shall be the sole and exclusive ,. -L property of the City. No such materials or properties produced in whole or in part for this project shall be subject to private use, copyrights, or patent rights by Contractor without the express written consent of the City. The City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics,, forms, or other materials or properties produced for this project. 2020-04-21 Agenda Packet, Page 144 of 421 RFP P,01-14/15 OF CHUB,,VISTA Page 6 PUBLIC 1315CLUbUKE All proposals submitted in response to this RIFP become the property of the City and public records,1 and as such may be subject to public review. Under the California Public Records Act (California Government Code Section 6250 et seq.) records in the custody of a public entity generally have to be disclosed unless the information being sought falls into one or more of the exemptions to disclosure set out in Government Code Sections 6254 through 6255. The cover letter of the proposal should contain a paragraph that states whether or not Consultant believes that its proposal does or does not contain information that falls into one of the exemptions of Government Code Sections 6254 through 6255 and whether or not Consu�ltant considers such information to be confidential. In the absence of a declaration, the City may be obligated to disclose the proposal to any party that requests it. Regardless of assertions, of confidentiality, proposal contents may still be disclosed if City, or a court with jurisdiction, determines that such proposal is a public record requiring disclosure. 2020-04-21 Agenda Packet, Page 145 of 421 RFP P,01-14/15 C1W of CHH ,,VISTA Page 7 The respondent, herein sometimes called consultant, contractor, vendor, or supplier submits a. proposal and offers to, enter into a contract with the city of chola Vista, herein celled city, this 11 th day of September 2014 as follows: This Proposal & Offer to contract, subject to the specifications, terms and conditions, and General Provisions herein,1 when duly accepted by the city shall constitute a contract between the parties. In consideration of the payments to be provided by the city, and in accordance with the conditions expressed in the proposal forms and specifications attached, and by this reference incorporated herein, Consultant agrees to furnish services to assist city and its Districting Commission as necessary in conducting public outreach and preparing draft, recommended and final districting plans. COPANS' NAME ADDRESS CITY STATE ZIP EMAIL ADDRESS TELEPHONE AX PRINT NAME TITLE SIGNATURE LATE Consultants shall submit 9 complete copies and one CD of their proposals. Proposals must be returned no later than 12 Noon PST (Pacific Standard Time) on SEPTEMBER 11, 20114. Date proposals will not be considered. Return this completed page with your proposal..) 2020-04-21 Agenda Packet, Page 146 of 421. RFP P,01-14/15 C1W of CHUB,,VISTA Page 8 Public Agency Participation Other public agencies e.g. cit; , counter, public corporation, political subdivision, school district, or water authority) may wait to participate in any award as a result of this bid. The City of Chula.Nista shall incur no financial responsibility in connectionwith any purchase by another public agency. The public agency shall accept sole responsibility for placing orders and making payments to the successful bidder. This option will not be considered in bid evaluation. Please indicate whether this will be granted. Yes No Business License: Chula vista Municipal Code Section 5.0 .o o requires all vendors doing business with the City to obtain a Business License. 2020-04-21 Agenda Packet, Page 147 of 421. RFP P,01-14/15 C1W OF CHUB,,VISTA Page 9 GENERAL PROVISIONS Please Read Care ally These Pro visions A re a Part cif'Your Bid and any Contrast Awarded The bidder agrees that: A. Bidder has carefully examined the specifications,and all provisions relating to the item(s)to be furnished or the work to be done;understands the meaning,intent,and requirements;and B. Bidder will enter into a written contract and furnish the item(s),or complete the work in the time specified,and in strict conformity with the City of Chula Vista specifications for the prices quoted. Note: Bidder is defined as any individual, partnership, or corporation submitting a bid, proposal, or quotation in response to a request for bid,request for proposal,or request for quotation. A bidder may also be referred to as consultant,contractor, supplier,or vendor. 1. Prices All prices and notations must be in ink or typewritten. Mistakes may be crossed out and corrections typed or written with ink adjacent to the error;the person signing the bid must initial corrections in.ink. Bids shall indicate the unit price extended to indicate the total price for each item bid. Any difference between the unit price correctly extended and the total price shown for all items bid shall be resolved in favor of the unit prices, except when the bidder clearly indicates that the total price for all items bid is based on consideration of being awarded the entire lot and that an adjustment of the total price is being made in consideration of receiving the entire bid. 0 2. Bidder's Security A bid deposit in an amount equal to at least 10%of the bid may be required as a bid security by the City. The bid security may only be in cash, a cashier's check, a certified check made payable to the City of Chula Vista, or a bidder's bond. If the bid security is a bond,it shall be executed by a surety insurer authorized to issue surety bonds in the State of California. The bid security must be executed by the bidder and enclosed with the bid proposal in the sealed bid envelope. 2020-04-21 Agenda Packet, Page 148 of 421 RFP P,01-14/15 CEN OF CHULA VISTA Page 10 3. Items Offered If the item offered has a trade name, brand and/or catalog number, such shall be stated in the bid. If the bidder proposes to famish an item of a manufacturer or vendor other than that mentioned on the face hereof,bidder must specify maker,brand,quality,catalog number,or other trade designation. Unless such is noted on the bid form,it will be deemed that the item offered is that designated even though the bid may state or equal. 4. Brand Names Whenever reference to a specific brand name is made, it is intended to describe a component that has been determined to best meet operational,performance,or reliability standards of the City,thereby incorporating these standards by reference within the specifications. An equivalent(or equal)may be offered by the bidder,subject to evaluation and acceptance by the City. It is the bidder's responsibility to provide,at bidder's expense,samples,test data, or other documentation the City may require fully evaluating and determining acceptability of an offered substitute. The City reserves the sole right to rej ect a substituted component that will not meet or exceed City standards. 5. Samples Samples may be required for bid evaluation and testing purposes. Bidders shall agree to provide samples within forty-eight(48)hours upon request and at no additional cost to the City 6. Verify Quotations Prices shall be verified prior to bid submittal, as withdrawal or correction may not be permitted after the bid has been opened. 7. Firm Prices Prices onbid shall be firm prices not subject to escalation. Inthe event the specifications provide for escalation,the maximum limit shall be shown,or the bid shall not be considered. In the event of a decline in market price below a price bid,the City of Chula Vista shall receive the benefit of such decline. 8. Modification or Withdrawal,of Bids Bids may be modified or withdrawn by written or facsimile notice received prior to the exact hour and date specified for receipt of bid. A bid may also be withdrawn in person by a bidder,or authorized representative, prior to the exact hour and date set for receipt of bids. Telephone withdrawals are not permitted. 9. Late Bids,Modifications,or Withdrawals (a) Bids,modifications of bids,or bid withdrawals received after the exact time and date specified for receipt will not be considered unless receipt is before the contract is awarded and the City determines that late receipt was due solely to City error. (b) Modification of a successful bid that makes the terms of the bid more favorable to,the City will be considered,at any time. 10. Mistake in Bid (a) If the bidder discovers a mistake in bid prior to the hour and date specified for receipt ofbid,bidder may correct the mistake by modifying or withdrawing the bid in accordance with Items 8 and 9 above. (b) If within seventy-two.....ours of the bid closing and prior to,the issuance of a purchase order or a contract,the apparent low and best bidder discovers a mistake in bid of a serious and significant nature which is unfavorable 2020-04-21 Agenda Packet, Page 149 of 421 RFP P,01-14/15 OF CHUB,,VISTA Page 11 to bidder,bidder may request consideration be given to modifying the bid if it remains,the lowest bid or to withdrawal of the bid if the result of the correction of the mistake makes another bidder lowest and best bidder. The mistake must be evident and provable. The right is reserved by the City to,reject any and all requests for correction of mistakes in bids received after the hour and date of the bid closing. The decision of the Purchasing Agent is final as regards acceptance or rejection of requests for correction of bids. (c) A mistake in bid cannot be considered once a purchase order or contract is issued. 1.1.. Signature All bids shall be signed and the title and firm name indicated. A bid by a corporation shall be signed by an authorized officer,employee or agent with his or her title. 12. No Bids If no bid is to be submitted, the bid should be marked No Bid and returned to maintain the bidder's name in the vendor file for future solicitations. A letter or postcard may be submitted. If a bidder fails to respond to a reasonable number of bids without returning a No Bid,the Purchasing Agent reserves the right to delete the bidder from the vendor file for future solicitations. 13. Alternative Proposals To be responsive to the bid,bidder must submit a proposal that meets all specific bid requirements. Once bidder has proposed a product which is responsive to the specification, bidder may include with the bid any additional proposals or alternative products that bidder believes can meet or exceed the City's requirements and that may offer additional advantages,benefits,or cost savings. The City reserves the right to evaluate,and accept or reject,such alternatives as though they were part of the original specifications without advertising for further bids,when in the best interests of the City. Any awards so made will be based on operational and cost analysis considerations that would result in the optimum economic advantage to the City. 14, Confidential Information Any information deemed confidential or proprietary should be clearly identified by the bidder as such. It may then be protected and treated with confidentiality only to the extent permitted by state law. Otherwise the information shall be considered a public record. Information or data submitted with a bid will not be returned. 15. Quality Unless otherwise required in the specifications,all goods furnished shall be new and unused. 16. Litigation Warranty The bidder, by bidding, warrants that bidder is not currently involved in litigation or arbitration concerning the materials or bidder's performance concerning the same or similar material or service to be supplied pursuant to this contract of specification,and that no judgments or awards have been made against bidder on the basis of bidder's performance in supplying or installing the same or similar material or service,unless such fact is disclosed to the City in the bid. Disclosure may not disqualify the bidder. The City reserves the right to,evaluate bids on the basis of the facts surrounding such litigation or arbitration and to require bidder to, furnish the City with a surety bond executed,by a surety company authorized to do business in the State of California and approved,by The City of Chula Vista in a sum equal to one hundred percent (100%) of the contract price conditional on the faithful performance by bidder of the contract in the event the bid is awarded to bidder,notwithstanding the litigation or 2020-04-21 Agenda Packet, Page 150 of 421 RFP P,01-14/15 CEN OF CHUB,,VISTA Page 12 arbitration. 17. Royalties,Licenses and Patents Unless otherwise specified,the bidder shall pay all royalties,license and patent fees. The bidder warrants that the materials to be supplied do not infringe any patent,trademark or copyright and further agrees to defend any and all suits, actions and claims for infringement that are brought against the City, and to defend, indemnify and hold harmless the City from all loss or damages, whether general, exemplary or punitive, as a result of any actual or claimed infringement asserted against the City, the bidder or those furnishing material to bidder pursuant to this contract. 1.8. Performance Standards Perfon,nance of work and acceptability of equipment or materials supplied pursuant to any contract or award shall be to the satisfaction of the City. 1.9. Warranties (a) All material,labor or equipment provided under the contract shall be warranted by bidder and/or manufacturer for at least twelve(12)months after acceptance by City. Greater warranty protection will be accepted. Lesser warranty protection must be indicated by bidder on the bid proposal as an exception (b) Bidder shall be considered primarily responsible to the City for all warranty service,parts and labor applicable to the goods or equipment provided by bidder under this bid or award, irrespective of whether bidder is an agent,broker,fabricator or manufacturer's dealer. Bidder shall be responsible for ensuring that warranty work is performed at a local agency or facility convenient to City and that services,parts and labor are available and provided to meet City's schedules and deadlines. City may require bidder to post a performance bond after contract award to guarantee performance of these obligations. Bidder may establish a service contract with a local agency satisfactory to City to meet this obligation if bidder does not ordinarily provide warranty service. 20. Addenda The effect of all addenda to the bid documents shall be considered in the bid,and said addenda shall be made part of the bid documents and shall be returned with them. Before submitting a bid,each bidder shall ascertain whether or not any addenda have been issued, and failure to cover in this bid any such addenda issued may render the bid invalid and result in its rejection. 21. Specifications to Prevail The detailed requirements of the specifications shall supersede any conflicting reference in these General Provisions that are in conflict therewith. 22. Taxes The City will furnish Exemption Certificates for Federal Excise Tax. The City is liable for State,City and,County Sales Taxes. Do not include this tax in the amount bid. However,tax is to be added by the successful bidder to the net amount invoiced. All or any portion of the City Sales Tax returned to the City will be considered in the evaluation of bids. 23. Conflict of Interest No City employee or elected or appointed member of City government,or member of the employee' s immediate family,may participate directly or indirectly in the procurement process pertaining to this bid if they: (a) Have a financial interest or other personal interest that is,incompatible with the proper discharge of their official 2020-04-21 Agenda Packet, Page 151 of 421 RFP P,01-14/15 OF CHUB,,VISTA Page 13 duties in the public interest or would tend to impair their independence,judgment or action in the performance of their official duties. (b) Are negotiating for or have an arrangement concerning prospective employment with bidder. The bidder warrants to the best of his knowledge that the submission of the bid will not create such conflict of interest.In the event such a conflict occurs,the bidder is to report it immediately to the Purchasing Agent. For breach or violation of this warranty,the City shall have the right to annul this contract without liability at its discretion, and bidder may be subject to damages and/or debarment or suspension. 24. Gratuities The City may rescind the right of the bidder to proceed under this agreement if it is found that gratuities in the form of entertainment,gifts,or otherwise are offered or given by the bidder,or any agent or representative of the bidder, to any officer or employee of the City with the intent of influencing award of this agreement or securing favorable treatment with respect to performance of this agreement. 25. Faithful Performance Bond Successful bidder may be required to furnish the City with a surety bond conditioned upon the faithful performance of the contract. This may take the form of a bond executed by a surety company authorized to do business in the State of California and approved by the City of Chula Vista,an endorsed Certificate of Deposit,or a money order or a certified check drawn on a solvent bank. The bond shall be in a sum equal to one hundred percent(100%)of the amount of the contract price. Such bond or deposit shall be forfeited to the City in the event that bidder receiving the contract shall fail or refuse to fulfill the requirements and all terms and conditions of the contract. 26. Insurance Bidder shall provide proof of liability and property damage insurance prior to performance of duties. Coverage shall be from a company authorized to transact business in the State of California and shall be in an amount not less than $1,000,000 combined single limit(CSL),unless otherwise specified. The City of Chula Vista shall be named as an additional insured and thirty(30)days notice of cancellation shall be indicated. wort erf s Compensation coverage for each employee engaged in work on City premises is required. Bidder is solely responsible for all insurance premium payments. 27. Indemnl*flcati*on Bidder shall defend,indemnify,protect and hold harmless the City,its elected and appointed officers,employees, and agents,from and against all claims for damages,liability,and expenses(including attorney s fees)arising out of this agreement and/or bidder's performance hereunder.,except as to such damages,liability,and expenses due to the sole negligence or willful acts of the City,its officers,employees or agents. 28. Award of Contract (a) Bids will be analyzed and award will be made to the lowest, responsive and responsible bidder whose bid conforms to the solicitation and whose bid is considered to be most advantageous to the City,price and other factors considered. Factors to be considered may include,but are not limited to: bidder's past performance, total unit cost,economic cost analysis,life cycle costs,warranty and quality,maintenance cost,durability,the operational requirements of the City and any other factors which will result in the optimum economic benefit to the City. (b) The City reserves the right to reject any item or items, to waive informalities, technical defects and minor irregularities in bids received; and to select the bid(s)deemed most advantageous to the City. The City will, however,consider bids submitted on an"all or nothing"basis if the bid is clearly designated as such. (c) The City reserves the right to award one or more contracts on the bids submitted,either by award of all items to 2020-04-21 Agenda Packet, Page 152 of 421 RFP P,01-14/15 OF CHUB,,VISTA Page 14 one bidder or by award of separate items or groups of items to various bidders as the interests of the City may require,unless the bidder clearly specifies,otherwise in his bid. (d) For the purpose of evaluating bids for multiple awards, the sum of $100.010 is considered to be the administrative cost to the City for issuing and administering each contract awarded under this solicitation,and individual awards will be made for the items and combinations of items which result in the lowest aggregate price to the City,including such administrative cost. (e) Upon acceptance by the City of Chula Vista,the solicitation,bid,proposal,or price quotation and a purchase order issued to the successful bidder shall be deemed to result in a binding contract incorporating those terms and these General Provisions without further action required by either party. Items are to be furnished as described in the bid and in strict conformity with all instructions,conditions,specifications,and provisions in the complete contract,as defined by this clause 28 or any related integrated agreement. 29. Bid Results To obtain bid results,either(1)attend bid opening or(2)provide a self-addressed,stamped envelope referencing bid number., and bid tabulation will be mailed to you upon verification of extensions or (3) visit the Purchasing Department no sooner than three (3) working days after bid opening to review bid tabulation. Due to time constraints,bid results cannot be given out over the phone. 30. Protests Protests by unsuccessful bidders to the selection for award shall be submitted in writing to the Purchasing Agent no later than ten(10)calendar days after award recommendation. The unsuccessful bidder shall have the right to appear at the City Council to protest any award to be confirmed by Council. Failure to submit a timely written protest to the Purchasing Agent shall bar consideration of such protest. 31. Documentation Due to the time constraints that affect contract performance,all required documents,certificates of insurance and bonds shall be provided tote City within ten (10) calendar days following award or date of request by City, whichever is later. Any failure to comply may result in bid being declared non-,responsive and rejected,and at City's option.the bid bond may be attached for damages suffered. 32. Discounts (a) Prompt payment discounts offered for payment within less than fifteen(15)calendar days will not be considered in evaluating bids for award. However,offered discounts of less than 15 days will be taken if payment is made within the discount period,even though not considered in the evaluation of bids. (b) In connection with any discount offered,time will be computed from date of delivery and acceptance,or invoice receipt,whichever is later. Payment is deemed to be made for the purpose of earning the discount on the date of mailing of the City check. (c) Any discount offered other than for prompt payment should be included in the net price quoted and not included in separate terms. In the event this is not done,the City reserves the right to accept the discount offered and adjust prices accordingly on the Purchase Order. 33. Seller's Invoice Invoices shall be prepared and submitted in duplicate to address shown on the Purchase Order. Separate invoices are required for each Purchase Order. Invoices shall contain the following information:Purchase Order number,item 2020-04-21 Agenda Packet, Page 153 of 421 RFP P,01-14/15 C1W OF CHUB,,VISTA Page 15 number,description of supplies or services,sizes,unit of measure,quantity,unit price and extended totals. 34. Inspection and Acceptance Inspection and acceptance will be at destination unless specified otherwise,and will be made by the City department shown in the shipping address or other duly authorized representative of the City. Until delivery and acceptance,and after any rejection,risk of loss will be on the bidder unless loss results from negligence of the City. 35. Lost and Damaged Shipments Risk of loss or damage to items prior to the time of their receipt and acceptance by the City is upon the bidder. The City has no obligation to accept damaged shipments and reserves the right to return at the bidder's expense damaged merchandise even though the damage was not apparent or discovered until after receipt of the items. 36. Late Shipments Bidder is responsible to notify the City department receiving the items and the Purchasing Agent of any late or delayed shipments. The City reserves the right to cancel all or any part of an order if the shipment is not made as promised. 37. Document Ownership (a) All technical documents and records originated or prepared pursuant to this contract,including papers,,reports, charts,and computer programs,shall be delivered to and become the exclusive property oft e City and may be copyrighted by the City. Bidder assigns all copyrights to City by undertaking this agreement. (b) All inventions,discoveries,enhancements,changes,or improvements of computer programs developed pursuant to this contract shall be the property of the City,and all patents or copyrights shall be assigned to City,unless otherwise agreed. Bidder agrees that City may make modifications to computer software furnished by bidder without infringing bidder's copyright or any license granted to City. 38, Advertisements,Product Endorsements City employees and agencies or organizations funded by the City of Chula Vista are prohibited from making endorsements, either implied or direct, of commercial products or services without written approval of the City Manager. No bidder may represent that the City of Chula Vista has endorsed their product or service without the Purchasing Agent' s prior written approval. 39. City Provisions to Prevail Except as indicated in the specifications,the City's standard General Provisions shall govern any contract award. Any standard terms and conditions of bidder submitted by bidder shall not be acceptable to City unless expressly agreed to by the City. The City reserves the right to reject bidder's bid as non-responsive, to consider the bid without bidder's standard terms and conditions, or to require bidder to delete reference to such as a condition of evaluation or award of the bid. If, after award of contract, bidder (contract vendor) shall provide materials or services accompanied by new or additional standard terms or conditions,they too shall be considered void and City may require deletion as a further condition of performance by vendor. To the extent not otherwise provided for by the contract documents,the California Commercial Code shall apply. 40. Invalid Provisions In the event that any one or more of the provisions of this agreement shall be found to be invalid, illegal or unenforceable,the remaining provisions shall remain in effect and be enforceable. 2020-04-21 Agenda Packet, Page 154 of 421 RFP P,01-14/15 C1W OF CHUB,,VISTA Page 16 41. Amendments and Modifications The Purchasing Agent may at any time,by written order,and without notice to the sureties,make a modification to the contract or an amendment to the Purchase Order,within the general scope of this contract, in(1)quantity of materials or service, whether more or less; (2) drawings, designs, or specifications, where the supplies to be furnished are to be specially manufactured for the City;(3)method of shipment or packing;and(4)place of delivery. If any such change causes an increase or decrease in the cost or the time required for the performance of this contract, an equitable adjustment shall be made by written modification of the contract or amendment to the Purchase Order. Any claim by the bidder for adjustment under this clause must be asserted within 30 calendar days from the notification date. 42. Assignment Vendor shall not assign or delegate duties or responsibilities under this agreement,in whole or in part,without prior written approval of the City. 43. Disputes Except as otherwise provided in these provisions, any dispute concerning a question of fact arising under this, contract which is not disposed of by agreement shall be decided by the Purchasing Agent,who shall reduce this decision to writing and mail a copy to the bidder. The decision of the Purchasing Agent shall be final and conclusive.,unless bidder requests mediation within ten(10)calendar days. Pending final decision of a dispute, the bidder shall proceed diligently with the performance of the contract and in accordance with the Purchasing Agent' s decision. 44. Mediation Should an unresolved dispute arise out of this agreement,any party may request that it be submitted to mediation. The parties shall meet in mediation within thirty(30) days of a request. The mediator shall be agreed to by the mediating parties;in the absence of an agreement,the parties shall each submit one name from mediators listed by either the American Arbitration Association, the California State Board of Mediation and Conciliation, or other agreed-upon.service. The mediator shall be selected by a Blindfold @ process. The cost of mediation shall be borne equally by both parties. Neither party shall be deemed the prevailing party.No party shall be permitted to file a legal action without first meeting in mediation,and making a good faith attempt to reach a mediated settlement. The mediation process,once commenced by a meeting with the mediator,shall last until agreement is reached by the parties but not more than sixty(60)days,unless the maximum time is extended by both parties. 45. Lawful Performance Vendor shall abide by all Federal,State and Local Laws,Ordinances,Regulations,and Statutes as may be related to the performance of duties under this agreement. In addition,all applicable permits and licenses required shall be obtained by the vendor,at vendor's sole expense. 46. Business License Chula Vista Municipal Code Section 5.02.020 requires all vendors doing business with the City to obtain a Business License. Section 5.02.20 states: It is unlawfulfbr any person,or'1br any person as agent,clerk or employee, either ,for himself'or for any otherperson, within the corporate limits qthe City, to transact, engage in, or carry on any business, show, exhibition or game hereinaV'rerspec4ied withoutfirst having procured a license. 47. Annual Appro riatiof Funds P 1 on 2020-04-21 Agenda Packet, Page 155 of 421 RFP P,01-14/15 OF CHUB,,VISTA Page 17 Multi-year term supply and service contracts and leases are subject to annual appropriation of funds by the City Council. Payments made under term contracts and leases are considered items of current expense. Purchase Orders are funded when issued; therefore, they are current expense items and are not subject to any subsequent appropriation of funds. In the event sufficient funds are not appropriated for the payment of lease payments or anticipated term contract payments required to be paid in the next occurring lease or contract term,and if no funds are legally available from other sources.,the lease or contract may be terminated at the end of the original term or renewal term and the City shall not be obligated to make further payments beyond the then current original or renewal term. The City will provide notice of its inability to continue the lease or contract at such time as the Purchasing Agent is aware of the non-appropriation of funds. However,failure to notify does,not renew the term of the lease or contract. The City has no monetary obligation in event of termination or reduction of a term contract since such contracts represent estimated quantities and is not funded as a contract except to the extent of the Purchase Orders issued. 48. Extension When in the City's best interest,this agreement may be extended on a daily,month-to-month,or annual basis by mutual agreement of both parties. Services and/or materials received under an extension shall be in accordance with pricing,terms,and conditions,as described herein. 49. Debarment The Purchasing Agent may recommend to the City Council that the person or business be debarred from consideration for award of contracts. The period of debarment will be contingent upon the severity of cause. Causes for debarment include: (a) Conviction under state or federal statutes of embezzlement,theft,forgery,bribery,falsification or destruction of records,receiving stolen property,or other offense indicating a lack of business integrity or business honesty which directly affects responsibility as a City bidder. (b) Violation of contract provisions which is regarded by the Purchasing Agent to be so serious as to justify debarment action,including: (1) Deliberate failure without good cause to perform in accordance with the specifications or within the time limit provided in the contract,or (2) A recent record of failure to perform or of unsatisfactory performance in accordance with the terms of one or more contracts, (3) Two or more claims of computational error in bid submission within a two year period. (c) Debarment by another governmental entity. (d) Any other cause the Purchasing Agent deems to be so serious and compelling as to affect responsibility as a City bidder. A bidder may be permanently debarred for the following causes: (1) Collusion in bidding. (2) Conviction for commission of a criminal offense as an incident to obtaining or attempting to obtain a contract or subcontract with the City of Chula Vista or in the performance of such contract or subcontract. (3) Conviction under State or Federal antitrust statutes arising out oft e submission of bids or proposals. 2020-04-21 Agenda Packet, Page 156 of 421 4 0 OW Of CHULA VISTA 50. Termination The City may terminate this agreement and be relieved of any consideration to the vendor should vendor fail to perform in the manner required. Furthermore,the City may terminate this agreement for any reason without penalty upon giving thirty(30)days written notice to the vendor. In the event of termination,the full extent of City liability shall be limited to an equitable adjustment and payment for materials and/or services authorized by and received to the satisfaction of the City prior to termination. 51. Venue This agreement shall be governed by and interpreted according to the laws of the State of California,and venue for any proceeding shall be in the County of San Diego. (REV 1/14) 2020-04-21 Agenda Packet, Page 157 of 421 4 0 Ow Of CHULA VISTA ATTACHMENT ""All SAMPLE OF STANDARD TWO PARTY AGREEMENT Agreement between City of Chula Vista and [INSERT NAME, OF CONSULTANT], To [INSERT SERVICES TO BE PROVIDED] This agreement (Agreement), effective [FILL-IN EFFECTIVE DATE], is between the City- related entity whose name and business form is indicated on Exhibit A,Paragraph 2,(City), and the entity whose name, business form, place of business and telephone numbers are indicated on Exhibit A,Paragraphs 4 through 6, (Consultant),and is made with reference to the following facts: RECITALS WHEREAS, [INSERT RECITALS; INCLUDE AS MANY AS NEEDED and WHEREAS, [INCLUDE RECITAL DEFINING THE 44PROJECT 192]�; 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. I Insert the relevant factual.background and necessary findings supporting hiring the Consultant.Also use the Recitals to deli ne terms or concepts to shorten references to them later in the Agreement.For example,il*property is involved in the agreement, a typical "Whereas"' clause may be.- 'Whereas, the property which is the subJect matter of this,Agreement is commonly known as, I and is legally described in attached Exhibit ("Property"); an 2. Include a description of the"Project,"a defined term in the Agreement. For examp 'Whereas,this Agreement irk to be performed in connectioii with the Eastern Urban Center proJect(the"Pro.j�ect 2020-04-21 Agenda Packet, Page 158 of 421 4 0 Ow Of CHULA VISTA [End of Recitals. Next Page Starts Obligatory Provisions.] OBLIGATORY PROVISIONS,PAGES NOW, THEREFORE, for valuable consideration the City and Consultant do hereby mutually agree as follows: All of the Recitals above are incorporated into this Agreement by this reference. ARTICLE I. CONSULTANT'S OBLIGATIONS A. General 1. General Duties. Consultant shall perform all of the services described on ExhibitA, Paragraph 7 (General Duties). 2. Scope of Work and Schedule. In performing and delivering the General Duties,Consultant shall also perform the services,and deliver to City the"Deliverables"described in Exhibit A, Paragraph 8, entitled "Scope of Work and Schedule," according to, and within the time frames set forth in Exhibit A,Paragraph 8,time being of the essence of this agreement. The General Duties and the work and Deliverables required in the Scope of Work and Schedule shall be referred to as the "Defined Services." Failure to complete the Defined Services by the times indicated does not, except at the option of the City, terminate this Agreement. a. Reductions in Scope qf'Work. City may independently,or upon request from Consultant, from time to time,reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with the reduction. b. Additional Services. In addition to performing the Defined Services, City may require Consultant to perform additional consulting services related to the Defined Services (Additional Services), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the"Rate Schedule"in Exhibit A,Paragraph I O(C),unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. 2020-04-21 Agenda Packet, Page 159 of 421 4 0 Ow Of CHULA VISTA 3. Standard of Care. The Consultant expressly warrants that the work to be performed pursuant to this Agreement, whether Defined Services or Additional Services, shall be performed in accordance with the standard of care ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations. a. No Waiver qf'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. B. Application of Laws. Should a federal or state law pre-empt a local law, or regulation, the Consultant must comply with the federal or state law and implementing regulations. No provision of this Agreement requires the Consultant to observe or enforce compliance with any provision, perform any other act, or do any other thing in contravention of federal, state, territorial, or local law, regulation, or ordinance. If compliance with any provision of this Agreement violates or would require the Consultant to violate any law,the Consultant agrees to notify City immediately in writing. Should this occur,the City and the Consultant agree that they will make appropriate arrangements to proceed with or, if necessary, amend or terminate this Agreement, or portions of it, expeditiously. 1. Subcontractors. Consultant agrees to take appropriate measures necessary to ensure that all participants utilized by the Consultant to complete its obligations under this Agreement,such as subcontractors, comply with all applicable laws, regulations, ordinances, and policies, whether federal, state, or local, affecting Project implementation. In addition, if a subcontractor is expected to fulfill any responsibilities of the Consultant under this Agreement, the Consultant shall ensure that the subcontractor carries out the Consultant's responsibilities as set forth in this Agreement. C. Insurance 1. General. Consultant must procure and maintain, during the period of performance of this Agreement, and for twelve months after completion, policies of insurance from insurance companies to protect against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work under this Agreement and the results of that work by the Consultant, his agents, representatives, employees or subcontractors, and provide documentation of same prior to commencement of work. 2020-04-21 Agenda Packet, Page 160 of 421 4 0 Ow Of CHULA VISTA 2. Minimum Scope of Insurance. Coverage must be at least as broad as: a. CGL. Insurance Services Office Commercial General Liability coverage (occurrence Form CGOOO 1). b. Auto. Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code I (any auto). c. WC. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance. d. E&O. Professional Liability or Errors&Omissions Liability insurance appropriate to the Consultant's profession.Architects' and Engineers' coverage is to be endorsed to include contractual liability. 3. Minimum Limits of Insurance. Consultant must maintain limits no less than those included in the table below: i. General Liability: 1,000,000 per occurrence for bodily injury, personal injury, (Ir cludir g (including death), and property damage. If Commercial General operations, Liability insurance with a general aggregate limit is used, either products and the general aggregate limit must apply separately to this completed Project/location or the general aggregate limit must be twice the operations, as required occurrence limit. applicable) ii. Automobile $1 000,000 per accident for bodily injury, including death, and Liability: property damage. iii. Workers' Statutory Compensation $1,000,000 each accident Employer's $1 000,000 disease-policy limit Liability: $1 000,000 disease-each employee iv. Professional $1.000,000 each occurrence Liability or Errors & Omissions Liability: 4. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of the City,either the insurer will reduce 2020-04-21 Agenda Packet, Page 161 of 421 4 0 Ow Of CLA VISTA or eliminate such deductibles or self-insured retentions as they pertain to the City,its Officers, Officials, employees and volunteers; Or the Consultant will provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration, and defense expenses. 5. Other Insurance Provisions. The general liability, automobile liability, and where appropriate,the worker's compensation policies are to contain,or be endorsed to contain,the following provisions: a. Additional Insureds. City of Chula vista, its officers, officials, employees, agents, and volunteers are to be named as additional insureds with respect to all policies of insurance, including those with respect to liability arising out of automobiles owned,Leased,hired or borrowed by or on behalf of the Consultant, where applicable, and, with respect to liability arising out of work or operations performed by or on behalf of the Consultant, including providing materials, parts or equipment furnished in connection with such work or operations. The general liability additional insured coverage must be provided in. the form of an endorsement to the Consultant's insurance using ISO CCS 2010(11/85)or its equivalent. Specifically, the endorsement must not exclude Products/Completed Operations coverage. b. .Primary Insurance. The Consultant's General Liability insurance coverage must be primary insurance as it pertains to the City, its officers,officials,employees,agents,and volunteers.Any insurance or self-insurance maintained by the City,its officers,officials, employees, or volunteers is wholly separate from the insurance of the Consultant and in no moray relieves the Consultant from its responsibility to provide insurance. c. Cancellation. The insurance policies required by this Agreement shall not be canceled by either party, except after thirty days' prior written notice to the City by certified mail, return receipt requested. The words"will endeavor"and."but failure to mail such notice shall impose no obligation or liability of any bind upon the company, its agents, or representatives" shall be deleted from all certificates. d. Waiver ofSubrogation. Consultant's insurer will provide a.Waiver er of Subrogation in. favor of the City for each required policy providing coverage for the term required by this Agreement. In addition, Consultant waives any right it may have or may obtain to subrogation for a claim against the City. 2020-04-21 Agenda Packet, Page 162 of 421. 4 0 OW Of CHULA VISTA 6. Claims Forms. If General Liability, Pollution and/or Asbestos Pollution Liability and/or Errors & Omissions coverage are written on a claims-made form: a. Retro Date. The "Retro Date" must be shown, and must be before the date of the Agreement or the beginning of the work required by the Agreement. b. Maintenance and Evidence. Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the work required by the Agreement. c. Cancellation. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a "Retro Date" prior to the effective date of the Agreement,the Consultant must purchase"extended reporting"coverage for a minimum of five years after completion of the work required by the Agreement. d. Copies. A copy of the claims reporting requirements must be submitted to the City for review. 7. Acceptability of Insurers. Insurance is to be placed with licensed insurers admitted to transact business in the State of California with a current A.M.Best's rating of no less than A V. If insurance is placed with a surplus lines insurer, insurer must be listed on the State of California List of Eligible Surplus Lines Insurers(LESL 'with a current A. 'I. Best's rating of no less than A X. Exception may be made for the State Compensation Fund when not specifically rated. 8. Verification of Coverage. Consultant shall furnish the City with original certificates and amendatory endorsements effecting coverage required by Section I.C. of this Agreement. The endorsements should be on insurance industry forms, provided those endorsements or policies conform to the requirements of this Agreement. All certificates and endorsements are to be received and approved by the City before work commences. 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. " . Subcontractors. Consultant must include all subconsultants,as insureds under its policies or furnish separate certificates and endorsements for each subconsultant. All coverage for subco'nsultants is subject to all of the requirements included in these specifications. 10. Not a Limitation of Other Oblig tions. Insurance provisions under this Article shall not be construed to limit the Consultant's obligations under this Agreement, including Indemnity. 2020-04-21 Agenda Packet, Page 163 of 421 4 0 OW Of CHULA VISTA 11. Additional Coverage. To the extent that Insurance coverage exceeds the minimums identified in section 3, recovery shall not be limited to the insurance minimums, but shall instead extend to the actual policy limits. D. Security for Performance L Performance Bond. In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide a Performance Bond(indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond, in the amount indicated at Exhibit A,Paragraph 18,in the form prescribed by the City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circular 570, h.ttp://www.fms.tre,as gov/c570, and whose underwriting limitation is sufficient to issue bonds in the amount required by the Agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure,, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be satisfactory to the Risk Manager or City. 2. Letter of Credit. In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide a Letter of Credit(indicated bye a check mark in the parenthetical space immediately preceding the subparagraph entitled"Letter of Credit"), then Consultant shall provide to the City an irrevocable letter of credit callable 'by the City at its unfettered discretion by submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank,and be in a form and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the term, "Letter of Credit," in Exhibit A, Paragraph 18. 3,. Other Securityr. In the event that Exhibit A, at Paragraph 18, indicates the need for Consultant to provide security other than a Performance Bond or a Letter of Credit(indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"),then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. 2020-04-21 Agenda Packet, Page 164 of 421 4 0 OW Of CHULA VISTA E. Business License. Consultant agrees to obtain a business license from the City and to otherwise comply with Title 5 of the Chula Vista Municipal Code. ARTICLE 11. CITY OBLIGATIONS A. Consultation and Cooperation. City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defined Services and Schedule, and to provide direction and guidance to achieve the objectives of this Agreement. The City shall allow Consultant access to its office facilities, files and records, as deemed necessary and appropriate by the City, throughout the term of this Agreement. In addition, City agrees to provide the materials identified at Exhibit A, Paragraph 9, with the understanding that delay in the provision of those materials beyond thirty days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance. B. Compensation., 1. Followin Receipt of Billing. Upon receipt of a properly prepared bill from Consultant, submitted to the City as indicated in Exhibit A, Paragraph 17, but in no event more frequently than monthly,on the day of the period indicated in Exhibit A,Paragraph 17,City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A,Paragraph 10,adjacent to the governing compensation relationship indicated by a"checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in Paragraph 18 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 11. 2, Sup,po,rt,i,ngInformation. Any billing submitted by Consultant shall contain sufficient information as to the propriety of the billing, including properly executed payrolls, time records, invoices, contracts, or vouchers describing in detail the nature of the charges to the Project in order to permit the City to evaluate that the amount due and payable is proper,and such billing shall specifically contain the City's account number indicated on Exhibit A, Paragraph 17(C) to be charged upon making such payment. 3,. Exclusions. In determining the amount of the compensation City will exclude any cost: 1) incurred prior to the effective date of this Agreement; or 2) arising out of or related to the errors, omissions, negligence or acts of willful misconduct of the Consultant, its agents, employees, or subcontractors. a. Errors and Omissions. In the event that the City Administrator determines that the Consultant's negligence, errors, or omissions in the performance of work under this 2020-04-21 Agenda Packet, Page 165 of 421 4 0 OW Of CHULA VISTA Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing in this paragraph is intended to limit City's rights under other provisions of this Agreement. 4. Payment Not Final Approval. The Consultant understands and agrees that payment to the Consultant for any Project cost does not constitute a City final decision about whether that cost is allowable and eligible for payment under the Project and does not constitute a waiver of any violation of Consultant oft e terms oft e Agreement. The Consultant acknowledges that City will not make a final determination about the eligibility of any cost until the final payment has been made on the Project or the results of an audit of the Project requested by the City has been completed,whichever occurs latest. If City determines that the Consultant is not entitled to receive any portion of the compensation due or paid, City will notify the Consultant in writing, stating its reasons. The Consultant agrees that Project closeout will not alter the Consultant's responsibility to return any funds due City as a result of later refunds, corrections,,or other similar transactions;nor will Project closeout alter the right of City to disallow costs and recover funds provided for the Project on the basis of a later audit or other review. a. Consultant's Obligation to Pay. Upon notification to the Consultant that specific amounts are owed to City, whether for excess payments or disallowed costs, the Consultant agrees to remit to City promptly the amounts owed, including applicable interest. ARTICLE 111. ETHICS A. Financial Interests of Consultant 1. Consultant is Desi gmated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 14,as an"FPPC filer,"Consultant is deemed to be a"Consultant"for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 14 of Exhibit A, or if none are specified, then as determined by the City Attorney. 2. No Participation in Decision. Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has 2020-04-21 Agenda Packet, Page 166 of 421 4 0 OW Of CHULA VISTA reason to no Consultant has a financial interest other than the compensation promised by this Agreement. 3. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer,,Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests,as the term is used in the regulations promulgated by the Fair Political Practices Commission,and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this Agreement. 4. Promise Not to Acquire Conflicting Interests. Regardless of whether Consultant is designated as an FPPC Filer,Consultant further warrants and represents that Consultant will not acquire,obtain,or assume an economic interest during the term of this Agreement which would constitute a conflict of interest as prohibited by the Fair Political Practices Act. 5. Duty to Advise of Conflicting;Interests. Regardless of whether Consultant is designated as an FPPC Filer,,Consultant further warrants and represents that Consultant will immediately advise the City Attorney if Consultant learns of an economic interest of Consultant's that may result in a conflict of interest for the purpose of the Fair Political Practices Act, and regulations promulgated thereunder. 6. Specific Warranties Ag inst Economic Interests. Consultant warrants,represents and agrees that: a. Neither Consultant, nor Consultant's immediate family members, nor Consultant's employees or agents (Consultant Associates) presently have any interest, directly or indirectly, whatsoever in any property which may be the subject matter of the Defined Services,, or in any property within 2 radial miles from the exterior boundaries of any property which may be the subject matter of the Defined Services, (Prohibited Interest), other than as listed in Exhibit A, Paragraph 14. b. No promise of future employment,remuneration,consideration,gratuity or other reward or gain has been made to Consultant or Consultant Associates in connection with Consultant's performance of this Agreement. Consultant promises to advise City of any such promise that may be made during the Term of this Agreement,or for twelve months thereafter. 2020-04-21 Agenda Packet, Page 167 of 421 4 0 OW Of CHULA VISTA c. Consultant Associates shall not acquire any such Prohibited Interest within the Term of this Agreement,or for twelve months after the expiration of this Agreement,except with the written permission of City. d. Consultant may not conduct or solicit any business for any party to this Agreement,or for any third party that may be in conflict with Consultant's responsibilities under this Agreement, except with the written permission of City. IV. LIQUIDATED DAMAGES A. Application of Section. The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 13. 1. Estimatima,Damm. It is acknowledged by both parties that time is of the essence in the completion of this Agreement. It is difficult to estimate the amount of damages resulting from delay in perfon-nance. The parties have used their judgment to arrive at a reasonable amount to compensate for delay. 2. Amount ofPenalty. Failure to complete the Defined Services within the allotted time period specified in this Agreement shall result in the following penalty: For each consecutive calendar day in excess of the time specified for the completion of the respective work assignment or Deliverable, the Consultant shall pay to the City, or have withheld from monies due, the sum of Liquidated Damages Rate provided in Exhibit A, Paragraph 13, (Liquidated Damages Rate). 3,. Reque,st, for Extension of Time. If the performance of any act required of Consultant is directly prevented or delayed 'by reason of strikes, lockouts, labor disputes, unusual governmental delays,acts of God,fire,floods,epidemics,freight embargoes,or other causes beyond the reasonable control of the Consultant,as determined by the City,Consultant shall be excused from performing that act for the period of time equal to the period of time of the prevention or delay. In the event Consultant claims the existence of such a delay, the Consultant shall notify the City's Contract Administrator,or designee, in writing of that fact within ten calendar days after the beginning of any such claimed delay. Extensions of time will not be granted for delays to minor portions of work unless it can be shown that such delays did or will delay the progress of the work. ARTICLE V. INDEMNIFICATION A. Defense, Indemnity, and Hold Harmless. 2020-04-21 Agenda Packet, Page 168 of 421 4 0 OW Of CLA VISTA 1. General Requirement. To the maximum extent allowed by lave, Consultant shall defend, indemnify,protect and hold harmless the City,its elected and appointed officers,agents and employees, from and against any and all claims,demands, causes of action,costs,expenses, (including reasonable attorney's fees and actual costs), liability, lass, damage or injury, in lave 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 Defined 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 sole willful misconduct of the City, its officers, employees.Also covered is liability arising from,connected with,caused by or claimed to be caused by the active or passive negligent acts or omissions oft e City,its agents,officers,or which may be in coni employeesy passive negligent acts or combination "'alt the active or omissions of the Consultant, its employees, agents or officers, or any third.party. 2. Design Professional Services. Notwithstanding the forgoing,if the services provided under this Agreement are design professional services,as defined by California Civil.Code section. 2782.5, as may be amended from gime 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. . Costs of Defense and Award. Included in the obligations in Sections A.1 and A.2,above,is the Consultant's obligation to defend.,at Consultant's own cost,expense and risk,any and all suits, actions or other legal proceedings, that may be brought or instituted against the City, its directors,officials,officers,employees,agents and/or volunteers,subject to the limitations in Sections A.1. and A.2. Subject to the limitations In Sections A.1 and A.2., Consultant shall pays and satisfy any judgment, ward or decree that may be rendered against City or its directors,officials,officers,employees,agents and/or volunteers,for any and all related legal expenses and costs incurred by each of them. . Insurance Proceeds. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials, officers, employees, agents, and/or volunteers. 5. Declarations. Consultant's obligations under Article V shall not be limited by any prior or subsequent declaration by the Consultant. 2020-04-21 Agenda Packet, Page 169 of 421. 4 0 OW Of CHULA VISTA 6. Enforcement Costs. Consultant agrees to pay any and all costs City incurs enforcing the indemnity and defense provisions set forth in Article V. 7. Survival. Consultant's obligations under Article V shall survive the termination of this Agreement. 8. No Alteration of Other obligations. This Article V, shall in no way alter, affect or modify any of the Consultant's other obligations and duties under this Agreement. ARTICLE VI. TERMINATION OF AGREEMENT A. Termination for Cause. If, through any cause, Consultant shall fail to fulfill in a timely and proper manner Consultant's obligations under this Agreement,or if Consultant shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to terminate this Agreement by giving written notice to Consultant of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event,all finished or unfinished documents,data,studies,surveys,drawings, maps,reports and other materials prepared by Consultant shall,at the option of the City,become the property of the City, and Consultant shall be entitled to receive just and equitable compensation, in an amount not to exceed that payable under this Agreement and less any damages caused City by Consultant's breach, for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination. B. Termination of Agreement for Convenience of City. City may terminate this Agreement at any time and for any reason,by giving specific written notice to Consultant of such termination and specifying the effective date thereof,at least thirty(3,0)days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described hereinabove shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation, in an amount not to exceed that payable under this Agreement, for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth in this section. ARTICLE VII. RECORD RETENTION AND ACCESS A. Record Retention. During the course of the Project and for three (3) years following completion,the Consultant agrees to maintain,intact and readily accessible,all data,documents, reports, records, contracts, and supporting materials relating to the Project as City may require. 2020-04-21 Agenda Packet, Page 170 of 421 4 0 Ow Of CHULA VISTA B. Access to Records of Consultant and Subcontractors. The Consultant agrees to permit, and require its subcontractors to permit City or its authorized representatives,upon request,,to inspect all Project work,materials,payrolls,and other data,and to audit the books,records,and accounts of the Contractor and its subcontractors pertaining to the Project. C. Project Closeout. The Consultant agrees that Project closeout does not alter the reporting and record retention requirements of this Agreement. ARTICLE VIII. PROJECT COMPLETION, AUDIT, AND CLOSEOUT A. Project Completion. Within ninety (90) calendar days following Project completion or termination by City, Consultant agrees to submit a final certification of Project expenses and audit reports, as applicable. B. Audit of Consultants. Consultant agrees to perform financial and compliance audits the City may require. The Consultant also agrees to obtain any other audits required by City. Consultant agrees that Project closeout will not alter Consultant's audit responsibilities. Audit costs are allowable Project costs. C. Project Closeout. Project closeout occurs when City notifies the Consultant that City has closed the Project, and either forwards the final payment or acknowledges that the Consultant has remitted the proper refund. The Consultant agrees that Project closeout by City does not invalidate any continuing requirements imposed by the Agreement or any unmet requirements set forth in a written notification from City ARTICLE IX. MISCELLANEOUS PROVISIONS A. Assignability. The services of Consultant are personal to the City, and Consultant shall not assign any interest in this Agreement,and shall not transfer any interest in the same(whether by assignment or notation), without prior written consent of City. 1. Limited Consent. City hereby consents to the assignment of the portions of the Defined Services identified in Exhibit A,Paragraph 16 to the subconsultants identified as"Permitted Subconsultants." B. Ownership, Publication, Reproduction and Use of Material. All reports, studies, information,data,statistics,forms,designs,plans,procedures,systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No 2020-04-21 Agenda Packet, Page 171 of 421 4 0 OW Of CHULA VISTA such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. C. Independent Contractor. City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are,for all purposes under this Agreement,independent contractors and shall not be deemed to be 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. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard to them. 1. Actions on Behalf of City. Except as City may specify in writing, Consultant shall have no authority,express or implied,to act on behalf of City in any capacity whatsoever,as an agent or otherwise. Consultant shall have no authority, express or implied, to bind City or its members, agents, or employees,to any obligation whatsoever, unless expressly provided in this Agreement. 2. NoO,bI,i ,ations to Third Parties. In connection with the Project,Consultant agrees and shall require that its agents,employees, subcontractors agree that City shall notbe responsible for any obligations or liabilities to any third party, including its agents, employees, subcontractors, or other person or entity that is not a party to this Agreement. Notwithstanding that City may have concurred in or approved any solicitation,subagreement, or third party contract at any tier, City shall have no obligation or liability to any person or entity not a party to this Agreement. 0 Daim . Administrative Cls 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 from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by City in the implementation of same. Upon request by City, 2020-04-21 Agenda Packet, Page 172 of 421 4 0 OW Of CHULA VISTA Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. E. Administration of Contract. Each party designates the individuals(Contract Administrators) indicated on Exhibit A,Paragraph 12,as that party's contract administrator who is authorized by the party to represent it in the routine administration of this Agreement. F. Term. This Agreement shall terminate when the parties have complied with all executory provisions hereof. G. Statement of Costs. In the event that Consultant prepares a report or document,,or participates in the preparation of a report or document in performing the Defined Services, Consultant shall include,or cause the inclusion of,in the report or document,a statement of the numbers and cost in dollar amounts of all contracts and subcontracts relating to the preparation of the report or document. H. Consultant is Real Estate Broker and/or Salesman. If the box on Exhibit A,Paragraph 15 is marked,the Consultant and/or its principals is are licensed with the State of California or some other state as a real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant nor its principals are licensed real estate brokers or salespersons. I. 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 as the places of business for each of the designated parties. J. Integration. This Agreement, together with any other written document referred to or contemplated in it,embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision of it may be amended, modified,waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. K. Capacity of Parties. Each signatory and party to this Agreement warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all necessary resolutions or other actions have been taken so as to enable it to enter into this Agreement. 2020-04-21 Agenda Packet, Page 173 of 421 4 0 OW Of CHULA VISTA L. Governing LawNenue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable,the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance under it, shall be the City of Chula Vista. (End of page. Next page is signature page.,) 2020-04-21 Agenda Packet, Page 174 of 421 4 0 Ow Of CHULA VISTA Signature Page to Agreement between City of Chula Vista and [INSERT NAME OF CONSULTANT], To [INSERT SERVICES TO BE PROVIDED] IN WITNESS WHEREOF, City and Consultant have executed this Agreement, indicating that they have read and understood same, and indicate their full and complete consent to its terms: City of Chula Vista By: [INSERT NAME OF SIGNATORY, e.g., Mayor, Sr. Procurement Specialist, City Manager] Attest: Donna Norris, City Clerk Approved as to form: Glen R. Googins, City Attorney [INSERT NAME OF CONSULTANT], By: [INSERT SIGNATORY NAME] [INSERT SIGNATORY TITLE] 2020-04-21 Agenda Packet, Page 175 of 421 4 0 OW Of CHULA VISTA Exhibit List to Agreement: Exhibit A ['LIST ADDITIONAL EXHIBITS, AS NECESSARY] Exhibit A to Agreement between City of Chula Vista and [INSERT NAME OF CONSULTANT] 1. Effective Date: The Agreement shall take effect upon full execution of the Agreement, as of the effective date stated on page I of the Agreement. 2. City-Related Entity-, [CHECK ONE] City of Chula Vista, a municipal chartered corporation of the State of California The Chula Vista Public Financing Authority, a The Chula Vista Industrial Development Authority, a Other: a [insert business form] (City) 3,. Place of Business for City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 919 10 4. Consultant: [INSERT CONSULTANT�S NAME] 5. Business Form of Consultant: 2020-04-21 Agenda Packet, Page 176 of 421 4 0 Ow Of CHULA VISTA Sole Proprietorship Partnership Corporation 6. Place of Business,, Telephone and Fax Number of Consultant: ['INSERT CONSULTANT'S ADDRESS AND PHONE ANDFAX NOS 7. General Duties: [INSERT GENERAL DESCRIPTION OF WORK TO BE PERFORMED BY CONSULTANT.] 8. Scope of Work and Schedule: A. Detailed Scope of or : [INSERT DETAILED DESCRIPTION OF WORK TO BE PERFORMED BY CONSULTANT.] B. Date for Commencement of Consultant Services: Same as Effective Date of Agreement Other: C. Dates or Time Limits for Delivery of Deliverables: Deliverable No. 1: Deliverable No. 2: Deliverable No. 3: D. Date for completion of all Consultant services: " . Materials Required to be Supplied by City to Consultant: 10. Compensation: A. ( ) Single Fixed Fee Arrangement. 2020-04-21 Agenda Packet, Page 177 of 421 4 0 OW Of CLA VISTA For performance of all of the defined Services by Consultant as herein required, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount: , payable as follows: Milestone or Event or Deliverable Amount or Percent of Fixed Fee 1. Interim Monthly Advances. The City shall made interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid.. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due fort at phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Consultant shall have represented in writing that said percentage of completion of the phase has been performed by the Consultant. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. Phased.Fixed Fee.Arrangement. For the performance of each phase or portion of the Refined Services by Consultant as are separately identified.bele, City shall pays the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Phase Fee for Said Phase l.. 2. . 2020-04-21 Agenda Packet, Page 1.78 of 421. 4 0 OW Of CHULA VISTA 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans that must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or-percentage set forth in Paragraph 18 is to be applied to each interim payment such that,,at the end of the phase,the full retention has been held back from the compensation due for that phase.Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided,but in no event shall such interim advance payment be made unless the Consultant shall have represented inciting that said percentage of completion of the phase has been performed by the Consultant. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required,, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule herein below according to the following terms and conditions: (1) ( ) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein required of Consultant for$ .including all Materials, and other"reimbursables" (Maximum Compensation)'. (2) ( ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to $ (Authorization Limit),Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the 2020-04-21 Agenda Packet, Page 179 of 421 4 0 OW Of CLA VISTA City. Nothing herein shall preclude [Consultant from providing additional Services at [Consultant's own cost and expense. See exhibit B for wage rates. Hourly rates may increase by % for services rendered after [month],2 , if delay In providing services is caused by City. 11. Materials reimbursement Arrangement For the cast of out ofpocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: None, the compensation includes all costs. [Crit or rate Reports,, not to exceed $ $ [Capias, not to exceed $ $ Travel, not to exceed $ $ Printing, not to exceed $ Postage, not to exceed $ $ Delivery, not to exceed $ $ } Outside Services: } Other Actual Identifiable Direct Costs: $ not to exceed $ $ not to exceed $ $ 12. [Contract Administrators. [City. [Consultant. 1 3. Liquidated Damages late: $ per day. Other: 2020-04-21 Agenda Packet, Page 1.80 of 421. 4 0 OW Of CLA VISTA 1 . Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code (Chula Vista Municipal Code chapter 2.02): Not Applicable. Not an FPPC Filer. F P'P"C Filer Category No. 1. Investments, sources of income and business interests. Category No. 2. Interests in real property. Category No. 3. Investments,business positions,interests in real property,and.sources of income subject to the regulatory, permit or licensing authority of the department administering this Agreement. Category No. 4. Investments and business positions in business entities and sources of income that engage in land development, construction or the acquisition or sale of real property. } Category No. 5. Investments and business positions in business entities and sources of income that, within the past two years, have contracted with the City of Chula Vrista or the City's Redevelopment Agency to provide services,supplies,materials,machinery or equipment. Category No. 6. Investments and business positions in business entities and sources of income that, within the past two years, have contracted with the department administering this Agreement to provide services, supplies, materials, machinery or equipment. } Dist Consultant Associates interests in real property within 2 radial miles of Project Property, if any: 2020-04-21 Agenda Packet, Page 1.81 of 421. 4 0 OW Of CHULA VISTA 15. Consultant is Real Estate Broker and/or Salesman 16. Permitted Subconsultants: 17. Bill Processing: A. Consultant's Billing to be submitted for the following period of time: Monthly Quarterly Other: B. Day of the Period for submission of Consultant's Billing: First of the Month 15th Day of each Month End of the Month Other: C. City's Account Number: [TO BE ASSIGNED] 18. Security for Performance Performance Bond, Letter of Credit, Other Security: Type: Amount: Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or"Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: Retention Percentage-, Retention Amount: 2020-04-21 Agenda Packet, Page 18,2 of 421 4 0 Ow Of CHULA VISTA Retention Release Event: Completion of All Consultant Services Other.- Other.- The Retention Amount may be released on a monthly basis provided that Consultant has performed said monthly services to the sole satisfaction of the Assistant City Manager/Director of Development Services or his designee. 2020-04-21 Agenda Packet, Page 18,3 of 421 CITYOF CHULAVISTA Request for Proposals Public outreach and Communication Support for Chula Vista Districting Commission Activities The City of Chula Vista (City) is requesting proposals from qualified professional consultants to assist City staff and the Districting Commission in the development and implementation of a Strategic Public outreach/Communication Work Pian ("Work Plan 111 This Work Plan will become an integral part in the community education and vetting process for the preparation of a Districting Flan to establish four Council districts, in accordance with Chula Vista City Charter, Section 300.5. The Work Plan is designed to generate a high level of community awareness and involvement in the districting process. The plan will address such issues as media relations, stakeholder outreach, multilingual outreach material development, and public meetoings/workshop participation of targeted stakeholders and tracking of results. Estimated Proposal Timeline Proposals must he received by December 1, 2014 at 4 p.m. The consultant selection process will he conducted upon the close of the application period. It is anticipated that the selected consultant will commence work in January 2015 upon approval of the Work Flan by the Districting Commission. The estimated completion date for consultant work is June 30, 2015. General Information The City of Chula Vista seeps written proposals from interested and qualified firms with expertise in multi-lingual public outreach and communications. This campaign will support and interface with the scope of work for the mapping consultant. The City of Chula Vista Charter was amended by voters in November 2012 to require that the City establish electoral districts from which the City's four City Council members will he elected. The district elections are to he phased-in over two election cycles, beginning with the 2016 elections. Charter Section 00.5., requires the four City Council districts to he established no later than February 1, 2016; however, the City is endeavoring to have the districts established by July 1, 2015. The Charter require significant public outreach, preparation of a Draft Districting Plan, numerous public meetings, preparation of a Recommended Districting ng Plan to be presented for City Council approval, implementation of the Final Districting Plan, preparation of a report to 2020-04-21 Agenda Packet gage 184 of 421. the City Council to accompany the recommended Districting Plan, and compliance with established districting criteria. Accordingly, the City seeks a consultant to assist the City's Districting Commission and City staff in this undertaking. More information is at www.chulavistaca.gov/distri Specifications and scope of work The consultant will be tasked with working closely with the City's Districting Commission, City staff and the 'Dapping Consultant to meet the Charter requirements to establish Council districts, within the established timeframe. Specific tasks will include: 1. Becoming familiar with relevant provisions of the City's Charter and Municipal Code. . Working with the Districting Commission, City staff and the mapping consultant in implementing the work Plan to promote broad-based public input by residents and targeted Chula Vista stakeholders in the development of various districting maps. The targeted stakeholders may include, but are not limited to businesses, community, social and/or non-profit organizations. . Coordinating, scheduling, and attending up to ten (10) public outreach meetings/workshops in various areas of the City to educate and engage targeted stakeholders on the development of districting maps. 4. Providing translation services at public outreach meetings/workshops, as requested. . Developing a variety of written materials which may include* fact sheet(s), advertising, web content, public meeting fliers} social media posts} press releases, newsletter articles, and other documents. The consultant will also coordinate translation of certain materials, as requested. . Assisting the Districting Commission, City staff and mapping consultant in implementing an open and transparent process that promotes public consideration of, and comment on, the drawing of districting lines. 7. Attending standing and special Districting Commission meetings to assist in the implementation of the work Plan and time line for establishing four Council Districts by no later than September 1, 2015. The proposal must demonstrate that the Consultant has significant experience and expertise in the following areas: multi-lingual community outreach and education regarding electoral districting or other City initiatives; working with stakeholder groups; meeting coordination and facilitation; and working with local governmental agencies. The consultant rust demonstrate working experience or strong familiarity with community-based-based or rani ations, non-profrl organizations and public agencies within Ch ula Vista. �/ �/ �/ Proposal Form and-Content The proposal should be no more than 20 pages inclusive of responses to items 1-6. To assist us in the evaluation process, the following information is required in your proposal: 1. Corer letter and introduction . Methodology proposed . Experience related to promoting public agency services and/or initiatives 2 2020-04-21 Agenda Packet gage 185 of 421. 4. Client References Provide a list of three to five of your clients for whom you have performed similar r services, Clients may be contacted randomly until at least two client references have been contacted. For each client please provide the client name, mailing address, contact name, telephone number and services provided. . Consultant Information — Provide information about your firm including: Name, title, address, phone number, and email of the individual authorized to negotiate with the City and contractually bind the consultant 0 Location Number of years in business 0 Number of employees 0 Resumes of project supervisor and other key staff members or others who will plan and direct activities, especially related to the pertinent experience of each key participant who would work on this project, including any sub-consultants 0 The firm's background and experience in assisting cities, counties, school districts or other districts with (re)d1stricting, i n c I ud i n g the experience of the consultant in projects such as this one. If no experience, please describe background and experience in community outreach/education for public agencies. Staff availability Tentative Schedule of Performance Scope of Services The time constraints involved i n the project 6. Cost Provide a cost proposal detailing a I I costs associated with providing the requested services. 7. Supplemental Information Consultants may provide supplemental information in pdf format such as brochures, sample work, websites, or other supporting documentation that the vendor believes will assist the City in making its selection. All supplemental information or documentation must be marked as an appendix. . Disclosure Statement must be completed and included in submittal Evaluation Criteria The Districting Commission and City staff will select a consultant that demonstrates * Experience developing and implementing similar outreach programs 0 Experience working with and engaging stakeholder groups * Capacity and ability to meet timeline 0 Itemized cost proposal 2020-04-2 Agenda Packet Page 186 of 421 Insurance Insurance requirements for consultants are included in the sample two party agreement (attachment A). The agreement will only be executed between the City and the awarded consultant. Business License A business license is required in the City of Chula lista by any person who transacts, engages in or carries on any business within the corporate limits of the city (Chula lista Municipal Code 5.02.020). City's Best Interests This RFP does not commit the City to award a contract, to pay any costs incurred in the preparation of the proposal to this request, or to procure or contract for services or supplies. The City reserves the right to accept or reject any or all proposals received a a result of this request, to negotiate with any qualified source, or to cancel in part or entirely this FFP, if it is in the best interest of the City to do so. The City further reserves the right to waive any technicalities or minor irregularities in bids received. The City may require the selected bidder to participate in negotiations and to submit such price, technical or other revisions of their proposals as may result from negotiations. The City shall be the sole judge in determining award of contract. Submission cif Proposal Your proposal must be submitted via email to Tricia McEwen, Procurement Specialist, tmcawen@chulavistaca.gov, by December 1, 2014 no later than 4 p.m. Late submittals will not be considered for award. Questions Any questions you may have pertaining to this Request for Proposal should b addressed to Tricia McEwen, tmcewan@chulavi taca, v. The deadline for questions i November 20 no later than 4 p.m. All questions and answers will be posted on our website on November 24 by 4 p.m. If you have not signed up for Planet Bids, visit www,chulavistaca.gov/busin click on the link "Doing Business with Local Government," then register for the bid list. 4 2020-04-21 Agenda Packet gage 187 of 421. City of Chula Vista Districting Phase One Workshops, Tuesday 4,/7 Wednesday 4/8 Thursday 4/9 Saturday 4/11 Saturday 4/11 TOTALS, I Attendance* 4�2 is 36 29 17 142 cipation" 9 8 13 is 12 60 COI Forms 0 3 0 2 0 5 Total Testimony 91 5 13 16 12 55 Ttanslation Requested* 8 3, 5 5 21 Filipino 5 2 4 1 0 13 Spanish 0 0 1 4 0 5 Chinese 2 1 0 0 0 3 Vietnamese 1 0 0 0 0 0 How dia,you hear.),* 14 11 __19 26 8 78 Eblast (Cityl Library, School) 3 3 7 4 2 19, Community Coalition 3 0 5 5 2 15 Community Organization 1 2 0 6 0 9 News (earned and paid) 4 2 0 3 0 9 Outreach Consultant 1 2 3 0 2 8 Word of Mouth 1 0 1 4 1 7 Website 1 1 1 3 0 6 Social Media 0 1 2 1 1 5 *Number are based on data gathered on sign in sheets through self-reporting **Data gathered from workshop minutes and forms submitted 2020-04-21 Agenda Packet, Page 18,8 of 421 City of Chula Vista Districting Phase Two Workshops Tuesday Wednesday Thursday Saturday 5/16 Saturday 5/16 TOTALS 5/12 5/13 5/14 A�M PM Total Attendance* 21 14 11 30 16 92 Participation* is 9 9 17 11 COI Forms 1 3 0 0 0 4 Total Testimony 14 6 9 17 11 57 Translation Requested* Filipino 1 0 1 0 2 6 Spanish 0 1 0 2 0 3 Ch�inese 0 0 1 0 0 1 Vietnamese 2 0 0 0 0 2 �How did you hear?* Eblast (City, Library, School) 1 1 2 4 Community Coalition 1 2 3 Community Organization 2 1 2 5 News (earned and p�aid) 1 1 2 Outreach Consultant 1 2 Word of Mouth 3 3 Website 0 1 2 Social Media i I I *Number are based on data gathered on sign in sheets through self-reporting **Data gathered from workshop minutes and forms subm�i'tted 2020-04-21 Agenda Packet, Page 18,9 of 421 ITEM #5 ATTACHMENTS FOR THIS ITEM WILL BE UPLOADED WHEN AVAILABLE 2020-04-21 Agenda Packet Page 190 of 421 IN III til C1TY' C,0UNC'1L A,GEN' DA STIA, ""EMENT CITY, OF ..................................... CHUIAVISTA April 21,202,0 File,ID: 20-0131 TITLE ACCEPTANCE OF AUDITED, COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) FOR FISCAL YEAR ENDED JUNE 30) 2019 RECOMMENDED ACTION Council accept the report. SUMMARY Presented for City Council information and acceptance are the audited basic financial statements included in the CAFR for the fiscal year ended June 30, 2019, as prepared by the independent audit firm of Lance S,oll & Lunghard, LL,P.The audit report submitted for the City has received an unmodified (clean) op�inion from the independent audit firm. ENVIRONMENTAL REVIEW The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental QualityAct(CEQA) and has determined thatthe activityis not a"Pro,ject))as defined under Section 1,5378 of the State CEQA Guidelines because the activity consists of a governmental fiscal/administrative activity which does not result in a physical change in the environment; therefore, pursuant to Section 1,5060(c)(3) of the State CEQA Guidelines,the activity is not subject to CEQA.'Thus, no, environmental review is required. BOARD/COMMISSION/COMMITTEE RECOMMENDATION Not applicable. DISCUSSION Pursuant to the City Charter Section 1017,an annual audit is performed of the City's financial records by an independent accounting firm. The report is included as an attachment. The firm of Lance Soll &Lunghard, LLP has examined the basic financial statements of the City of Chula Vista and has issued their opinion that those statements present fairly,in all material respects,the respective financial position of the governmental activities,the business-type activities,each major fund,and the aggregate remaining fund information of the City as of June 30, 2019and the respective changes in financial position, and where app�licab�le, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. PIi3ge 1 2020-04-21 Agenda Packet, Page 191 of 421 I t" The unassigned fund balance for the City s General Fund(Fund 100)totaled$27.2,million as of'june 30,,20�19. This amount reflects 15.0% in unassigned fund balance (operating reserves) of'fiscal year 2018-19 actual expenditures of$157.9 million, which includes transfers out to other funds except for transfers related to Measure P,Measure A,and Public Liability Trust. The unassigned fund balance increased from$23.8 million to $27.2 million when compared to June 30, 2,018, representing an increase of$3.4, million, and resulted in the City's second consecutive year in full funding of the General Fund Operating Reserve (per the General Fund Reserve,Policy- Policy No. 220-03). In addition to the unassigned fund balance/General Fund Operating Reserve,the General Fund ended fiscal year 2018-19 with $7.3 million in the Economic Contingency Reserve,which represents an increase, of$3.5 million from the prior fiscal year. This reserve was also established by the City Council in fiscal year 2009 with the approval of the Policy No. 220-03. The Economic Contingency Reserve has previously been funded through one-time revenues and/or expenditure savings. The additional $3.5 million was funded after fully funding the General Fund Operating Reserve as described above. The reserve policy sets a reserve goal of 5%for the Economic Contingency Reserve. The General Fund ended fiscal year 2018-19 with approximately 4.6%in the Economic Contingency Reserve. Lance Soll &Lunghard, LLP considered the City 01 s internal control over financial reporting to determine the appropriate audit procedures for expressing opinions on the financial statements,but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. The Independent Auditors' Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards is included in the CAFR for fiscal year 2019�. This was Lance So�ll & Lunghard, LLP's sixth year serving as the City's independent auditors. The City's Consolidated Annual Financial Report(CAFR),is provided as Attachment 1 of this report. DECISIOM-MAKER CONFLICT Staff has reviewed the decision contemplated by this action and has determined that it is not site-spe�cific and consequently,the 500�-foot rule found in California Code o�f'Re�gulations Title 2,section 18702.2(a)(11),is not applicable to this decision for purposes of determining a disqualifying real property-related financial conflict of interest under the Political Reform Act(Cal. Gov't Code§87100,et seq.). Staff is not independently aware, and has not been informed by any City Counc�ilmember, of any other fact that may constitute a basis for a decision maker conflict of interest in this matter. CURRENT-YEAR FISCAL IMPACT There is no fiscal impact as a result of accepting the Fiscal Year 2018-19 Comprehensive Annual Financial Report. P �3ge 2 2020-04-21 Agenda Packet, Page 192 of 421 ONGOING FISCAL IMPACT There is no ongoing fiscal impact as result of'this action. ATTAC14MENTS 1. Fiscal Year 2018/19 Comprehensive Annual Financial Report Staff Contact.-David B'ilby, MSBA, CPF0, Finance DirectorlTreasurer P �3ge 3 2020-04-21 Agenda Packet, Page 193 of 421 ........ CITY OF CHULA VISTA C a I i f o r n a OP 7 110 1?' ........... Comprehensive Annual L"M Financial Report Reeele fj A I'IS 11 C"I'l A 1, YE A�R N"DE ............. j[­U'N`­E 3 0� 2 O'l 9 2020-04-21 Agenda Packet, Page 194 of 421 C17Yj 01"'F' CHIL)IAVISTA State of California Comprehensive Annual F 0 0 inancial Report For The Fiscal Year Ended June, 30, 2019 MaLor Mary Casillas Salas 9!E Council All Galvez "Mike' i Diaz Compiled under the direction of John McCann David Bilby StephenPadilla Director of FinancelTreasurer CLtI,,Manager Gary Halbert 2020-04-21 Agenda Packet Page 195 of 421 2020-04-21 Agenda Packet, Page 196 of 421 CITY OF CHULA VISTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30��2019 'TABLE OF CONTENTS Page Number INTRODUCTORY SECTION(unaudi Letterof Transmittal.............................................................................................................................................. PrincipalOfflioimls................................................................................................................................................v OrganizationalChart............................................................................................................................................vi Certificate of Achievement for Excellence boFinaocimK.Repmrtiog....................................................................vii FINANCIAL SECTION IndependentAuditors' Report......................................................................................................................... I Management's Discussion and Analysis(Required Supplementary Information)......................................5 Basic Financial Statements: Government-Wide Financial Statements: StatementofNer.posiboo......-.-.-.-...-.-.-.-.....................................................................................................27 Statement mfActi ities,and Changes in N'et Position..................................................................................28 Fund Financial Statements.* Governmental Fund Financial Statements: BalanceSbeeu..-...-.-.-..................................-.........................................-.-.-.-.-.-.-.-.-.-.-.-.........................34 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position....................................................................................................37 Statement mfReveoues,Expenditures and Changes in Fund Balances....................-...-.-...-...........-.-.-.-.-.....................................................................................38 Reconciliation of the Statement of Revenoes'.Expenditures and Changes in Fund Balances ofGmveromenzal Funds to the Statementof Activdies...-.-.-.-.-.-.-..................-.-.............................................................................40 Proprietary Fund Financial Statements: Statementof Net Position.....................................................................................................................42 Statement of Revenues, Expenses and Changes ioFund Net Position..........................................................................................................................................43 Statementof Cash Flows ..-.-.........-.......-.......-.-...................................................................................44 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position.....................................................................................................45 Statement of Changes in Fiduciary Net Position..................................................................................46 Notes*m��asi,c Financial.Statements............................................................................................................49 CITY OF CHULA VISTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30��2019 TABLE OF CONTENTS(CONTINUED) Page Number FINANCIAL SECTION(Continued) Required Supplementary Information*. Budgetary Comparison Schedule byDepartment-General.Fund.............................................................. 11.5 Budgetary Comparison.Schedule-Sundry Grants Special Revenue Fund................................................ 11.6 Budgetary Comparison Schedule-H.ousing SuccessorAgency Special.Revenue Fund............................ 117 Schedule of Changes,in Net Pension Liability and Related Ratios-Miscellaneous.................................. 118 Schedule of Plan Contributions-Miscellaneous........................................................................................ 119 Schedule of Changes,in Net Pension Liability and Related Ratios-Safety............................................... 120 Schedule of Plan Contributions- Safety..................................................................................................... 121 Schedule of Changes in the Total,OPEB Liability and Related Ratios ..................................................... 122 Notes to Required SupplementaryInformation................................................................................................. 1.23 Supplementary Information': Non-Major Governmental Funds: CombiningBalance Sheet................................................................................................................... 126 Combining Statement of Revenues,Expenditures and Changes in Fund Balances............................ 132 Budgetary Comparison Schedule by Expense Category: GeneralFund....................................................................................................................................... 138 Sundry Grants Special Revenue Fund................................................................................................. 140 Housing Successor Agency Special Revenue Fund............................................................................ 142 Schedule of Revenues,Expenditures and Changes inFund Balances—Budget and Actual: Transportation Grants Special Revenue Fund..................................................................................... 143 Parking Meter Special Revenue Fund................................................................................................. 1.44 Traffic Safety Special Revenue Fund.................................................................................................. 1,45 Storm Drain Special Revenue Fund.................................................................................................... 146 Town Center I Special Revenue Fund................................................................................................. 147 Open Space Districts Special Revenue Fund ...................................................................................... 148 Housing Programs Special,Revenue Fund.......................................................................................... 149 Housing Authority Special Revenue Fund.......................................................................................... 150 Transportation Sales Tax Special Revenue Fund................................................................................ 151 Public Education and Government.Fee Special Revenue Fund.......................................................... 1.52 Utility Tax Settlement Special Revenue Fund.................................................................................... 153 Park.Acquisition Development Capital Project Fund.......................................................................... 1.54 Residential Construction tax Capital.Project Fund.............................................................................. 155 BicycleFacility................................................................................................................................... 156 Assessment District Improvement Capital Project Fund..................................................................... 157 Development Impact Capital Project Fund......................................................................................... 158 Other Transportation Program Capital Project Fund........................................................................... 159 CapitalProjects Fund..........................................................................................................................160 Notes Payable Debt Service Fund.......................................................................................................161 Leases Payable Debt Service Fund......................................................................................................162 CityDebt ServiceFund....................................................................................................................... 1.63 Public Financing Authority Debt Service Fund.................................................................................. 164 .Municipal Financing Authority Debt Service Fund............................................................................ .165 2020-04-21 Agenda Packet, Page 198 of 421 CITY OF CHULA VISTA COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30�2019 TABLE OF CONTENTS(CONTINUED) Page Number FINANCIAL SECTION(Continued) Non-Major Proprietary Funds: Combining Statement of Net Position................................................................................................. 166 Combining Statement of Revenues,Expenses,and Changes in Net Position...................................... 167 Combining Statement of Cash Flows.................................................................................................. 168 Internal. Service Funds: Combining Statement of Net Position................................................................................................. 1.69 Combining Statement of Revenues,Expenses,and Changes in Net Position...................................... 170 Combining Statement of Cash Flows.................................................................................................. 171 Fiduciary Funds: Combining Statement of Net Position—All Agency Funds................................................................ 172 Combining Statement of Changes in Assets and Liabilities—All Agency Funds............................... 173 STATISTICAL SECTION Net Position.by Component-Last Ten Fiscal Years.................................................................................. 1.76 Changes in Net Position.-Last Ten.Fiscal Years....................................................................................... 1.78 Fund Balances, Governmental Funds—Last Ten Fiscal.Years.................................................................. 180 Changes in Fund Balances,Governmental Funds—Last Ten Years.......................................................... 182 Assessed Value and Estimated Actual Value of Taxable 189 Property-Last Ten Fiscal Years............................................................................................................. 184 Direct and Overlapping Property Tax Rates-Last Ten Fiscal Years......................................................... 185 Principal Property Tax Payers-Current Year and Nine Years Ago .......................................................... 186 Property Tax Levies and Collections-Last Ten Fiscal Years.................................................................... 187 Ratios of Outstanding Debt by Type-Last Ten Fiscal Years.................................................................... 188 Ratios of General Bonded Debt Outstanding-Last TenFiscal Years....................................................... 189 Statement ofl)irect and OverLappingBondedDebt................................................................................. 191.. LegalDebt MargirtIn.formalion-Last Ten.Fiscal 'Years........................................................................... .192 Pledged-Revenue Coverage-Last Ten.Fisca.].Years.................................................................................. 194 Demographic and Economic Statistics-Last Ten Calendar Years............................................................ 195 Principal Employers-Current Year and Nine Years Ago.......................................................................... 196 Full-time and,Part-time City Employees by Function-Last Ten Fiscal.years........................................... 197 Operating Indicators by Function/Program-Last Ten Fiscal Years ......................................................... 198 Capital Asset Statistics by Function/Program-Last Ten Fiscal Years...................................................... 199 Independent Auditors' Report on Internal Control Over Financial Reporting And on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.......................201. 2020-04-21 Agenda Packet, Page 199 of 421 2020-04-21 Agenda Packet, Page 200 of 421 Cln,'OF' me Department IST F inanc CHULA V March 251 2020 Honorable Mayor, Councilmembers, and Citizens, of Chula Vista Chula Vista City Hall Chula Vista, CA 91910 The audited Comprehensive Annual Financial Report (CAFR) of the City of Chula Vista for the fiscal year ended June 30, 2019 is,hereby submitted to you.. The City comp i I.e s,and prepares,the annual.financial. report to provide interested parties with reliable information concerning the financial condition and results of operations for the City. The basic financial statements are audited by an independent certified public accounting firm. The purpose of the audit is to ensure that the financial statements present fairly, in all material respects, the financial position, and the results of operations, of the City. Responsibility for both. the accuracy of the information and the completeness and fairness of the presentation, including all disclosures,, rests with City management. The financial statements have been prepared in accordance with generally accepted accounting principles. This means that the statements have been prepared using guidelines that would allow the user to make a meaningful comparison to the financial. statements of other similar entities. All disclosures necessary to enab�le the reader to gain an understanding of the City of Chula Vista's activities have been included. Generally accepted accounting princip�les require that management provide a narrative introduction, overview., and analysis to accompany the 'basic financial statements in the form of Management's Discussion and Analysis (MD�&A). This letter of trans,m.ittal is designed to complement the MD,&A and should be read in co�njunctio�n with it. The City of Chula Vista"s MD&A can be found immediately following the report of the independent auditors. The City of Chula Vista is required to undergo an annual. single audit in, conformity with the provisions of the Revised Single Audit Act of 1996 and the United States Office of Management and Budget's Uniform Guidance. Information related to this single audit,including a schedule of expenditures of federal. awards, along with the independent auditors' reports on internal controls, and compliance with applicable laws, can be found in a separately issued single audit report. The Comprehensive Annual. Financial. Report for the City of Chula Vista includes the activities of the primary government (City of Chula Vista) along with several "component units." A component unit is a legally separate organization or entity for which the elected officials of the primary government are financially accountable. Component units, although they are legally separate entities, are in substance part of the primary government's operations and therefore included for financial reporting purposes. The component units included within the City of Chula Vista's financial statements are the Chula Vista Public 691-510,51 276 Fourth—Avenue, Chula Vista, CA 919110 ww�w.,chti.'I,,a.-v-,i.,s,,taca.g,o,v (61, fax (619) 585-56,85 2020-04-21 Agenda Packet, Page 201 of 421 Financing Authority, Chula Vista Municipal Financing Authority, Chula Vista Industrial Development .Authority, and.Chula Vista Housing.Authority. Profile of the Government The City of Chula Vista is located in. San. D�iego County with its, western border adjacent to San D,iego Bay, 8 miles south of Downtown San Diego and 7 miles north of the Mexican border. The City encompasses approximately 51 square miles. Chula Vista was, incorporated in. 1.9 1.1, and functions under a City Charter with a Counci.l./Manager form of government. The City is governed by a four-�member Council and a Mayor, who serves four-year overlapping terms, and., in. addition to the City.A.1torney, is elected on a citywide b�asi.s. The City Council appoints the City Manager and the City Clerk. Municipal services provided include police, fire,parks,and recreation,, libraries, planning & building, housing programs, street and drainage construction and maintenance, and sewer services. Local Economy and Prospects for the Future Chula Vista residents enjoy all the benefits of a major city along with small town friendliness, affordable housing, and near perfect weather. The most recent data available fro�m. SANDAG estimates that the median household income in Chula Vista is $,75,59�7. The City of Chula Vista, with a population of approximately 271,65 1, per the US Census is the second largest community in.San-Diego County. The San.DiegoAssociation of Governments(SANDAG) projects that the City of Chula Vista will reach a population of approximately 345,586 by the year 2050. SANDAG's 2050 Growth Forecast indicates that the South. County sub region will continue to host a substantial amount of the region's projected growth over the next three decades, primarily through new development in.the eastern.portion. of the City. 0 0 Long-Term Financial. Planniing The City updated the General. Fu.n.d .Lo�n.g�-Term. .Fi,.nan.cial. Plan as part of its annual. budget development process. The forecast analyzed revenue and expenditure estimates and assumptions over a I O-year period to assess the City's ability to continue current service levels,based on projected growth.,preserve the City's lo�ng-term fiscal health by aligning operating revenues and costs, and to slowly rebuild the operating reserves. The goal of the financial. forecast is to match. the availability of revenues against expenditures over time and update budgetary and financial p�lans accordingly. In summary, the Lo�ng-Term Financial Plan provides an. in-depth analysis, of the City's fi.scal. condition. to aide in. pro�active -,Financial decision. making and to serve as a planning tool to bring a long-term perspective to the budget development process. The forecast anticipated moderate revenue growth for the next ten years and identified a structural imbalance beginning in fi.scal. year 202 1, primarily due to expenses related to pension, healthcare, and public safety staffing costs. 276 R Vista, CA 919110 w-w,w.�chu'],,,avis,,taca�..g,o,v, (619) 6 91 55 05 1 d##60 f5g,$-56,85, The Government Finance Officers Association (GFOA) recognizes the importance of combining the forecasting of revenues and. expenditures into a single financial forecast. The GFOA also recommends that a government should have a financial planning process that assesses long-term financial im-plications of current and.proposed policies,programs, and.assumptions,that develop appropriate strategies to achieve its goals. Internal Controls The City has developed and put into place systems of internal controls over various accounting and transaction processing function.s. Management of the City is responsible for e stab fi shing and maintaining the internal control structure. This structure is designed to ensure that the assets of the City are protected from loss,theft, or rnisuse. These controls are also in place to ensure that adequate accounting information. is compiled to allow for the preparation of financial statements 'in conformity with generally accepted accounting principles. The internal. control structure is designed to provide reasonable, but not absolute, assurance that these objectives aremet. The idea of reasonable assurance recognizes that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of cost and benefits requires estimates and judgments by management. Budgetary Controls The City currently adopts a single-year operating and capital budget. The provisions of these budgets are directly posted into the City's general ledger accounting system to help ensure compliance with. the appropriations made by the City Council. Activities of the City's Governmental Funds, (general fund, special 'revenue funds, debt service funds, and capital project funds) are adopted in the operating budget. Budgetary control (which. is the policy that actual expenditures may not exceed appropriations) is at the expenditure category level within each fund. .Any budget modification.which.would result in an appropriation increase requires City Council. approval.. The City Manager and Finance Director are jointly authorized to transfer appropriations up to $,15,000 within. a departmental budget. Any appropriation transfers between departments, or greater than $1.5,000 require City Council approval. Amounts appropriated for each year in the operating budget lapse at the end of each. fiscal year, unless carried forward through the encumbrance process. The City Council also adopts amounts in the operating budget for the proprietary and internal service funds to provide a level of -fiscal control. 276 R Vista, CA 919110 w-w,w.�chu'],,,avis,,taca�..g,o,v, (619) 6 91 55 05 1 fAg(tM f5g,$-56,85, Independen't Audi"t C idej,t, ce'rti fied, pt bI Eacli,� Year,the Oty' 'Im,s, an 'clltd," it peifi '-ned, by ,an, inctepet I i tc accounti,tig fi�,,rm. Tlu,s, year the aud"I't was pe,,i,-fornied, by �the ftrni, of'Lance soll, aild L'ung',lia,11A, L't-OP", ""'I"he (au(Jitors, also conducted a silligle audilt" designed to(niect fhe requii,,ements,of the federal, Revis,ed SIngle Audit Act of'111996 a d the J� I LI -0 'm I �, ',� , eport on the 'basic related U.S. GfIke of Mailagem-en,t and, Budget', U'ntf r�, Guidance. 'Tlite atid tor's 1, fi I I 1�11 I I nancial stafements call be fiotun,d i-n the finati,cic-1,11. section of thl"'s I'vpotl. The atlditur"s report on ij:iternal controlsover finctu-mial reportintgccind,compIlance wit'll acppl 1 cable laws and regulafiotl,�z canbe f6und "in aseparately isssued t-eport. Awa,rds The Govet-i'ment Finance Officers Assoclabon of tlie 'United, Stiates and Canada, (GFOA) awarded a C,ert]",,fi c Cate, ofAch',jevement for Euellen-ce in Financial Repoiltitig 'to the C`ty, of Chutla ViSta for, its Conipreliensive Alinual Fin ancial Report foi, the year ended-Jut"ie,30,201S-, ThIs was the 19"'consecutive year,that the City,has rece,lved tli,is prestigious mard. 1',�n,orciet-tobea��w�a,,i,,-deda,.Cc,,rt,,'ific,a,teof-A,c,',I,,it,ev,,eiii�e,nt, a govenimej,11,mu"st,pitbitsh an,easily readable and,effic,lent1yorgail,lized Cot,,,iipreb,e,j,i',(,s�i�,,v,eI Anncual Finat,,icial Report. T'his report tntist satisfy 'both geiiei'mIly, acce, If 'pted. accolL i mg, pruicIpies a�id, appl. cable legal i-equi,runents, A Ceilificate of A,clu'ev,em!,,ent is vall'd, f or a period of one year mily. We bell"'eve t1i,at our current Comuprelien,sive Annua] Financial Repoll contI1.11,11C,S1 'to, tneet, the, Cc-rtlficate of Aehi,evemen,'t Rrogn-am"s el"g"Whty, for another certlffiicate. requi alid w ',are, agai,nSL[`bm,,'it't'mg it to GFOA to d,eter -rements Acknowledgments, I'he preparation of this Comprehensive Annua. Fulancj'al R,epoi:l cotild not have bleen, accomp'.1"IsIlled, w'Ithout the efficient aild, dedicated services of'the entire ftiaance staff throughou't, the fiscal year,,, W"e wo,tild, like to thank all tholse ndMd-tials M1,11-o assi.Sted atid conti"buted, to thepreparatton of this repoll. Acknowlledg n' C-Iltn'I'Llst, afis.,o'be given to,; the Mayor and C ity Coundl, alojig with the City Manager, fol-7 their coj fimied- 1"intlerest in planning and. conductimg the', operations oftlie City of Cliula, ViSta in a responsibleand progj,-css'iv,c6"i,iia,n,ner. Rels'pect'Iftilly suhmlitted"I tle 5�,, David 'Btlby Director offinance/Treasurer, 276 ,Fourfli-Avetlue, !�,u�,�ai, vista,, CA 91910 WW lavi (619)11 691-5051 a .ac et fax 2020-04-21 Agedz t wchul staxa.gov iv City of Chula Vista List of'C�ity Officials As of June 30, 20,19 City Council Mary Casil�las Sa�las Mayor Stephen Padilla Deputy Mayor Michael Diaz Cou�ncilmember Jill Gialvez Councilmem�ber John M�cCann Councilmember Administration Gary Halbert C,ity Man�a�ger M�aria Kachadooria�n Assistant C,ity M�an�ager Kelley Bacon Deputy City Ma�nager, Glen R. Googins City Att,orn�ey Kerry K. Bigelow City Clerk Department Heads David Bilby Directo�r of Fin�ance/Treasu�rer Kelly Broughton Director of Development Services Eric Crockett Dlirectoir of Economic Developm�e�nt Courtney Chase Dlirector of H�uman Resources Edward Chew Director of Information Technology Services Jim Geering Fir�e Chief 1rac,sema Q,uilantan Dlirector of Public Works, Roxa�na Kennedy Ch�ief of Poli'ce, Tracy La�m�b Dlirector of Community Services William Valle Director of Engineering & Capital Projects, 2020-04-21 Agenda Packet, Page 205 of 421 V %w 1% A%pw k11TY OF CHUL, AVIS' I' urganizational Chart- Cilty Attor�ney I= CITIZENS 1OF CHULA VISTA Citizen Advisory Citizen,Advisory Commissions Boards 71 City�Ma�nager City Clerk Deputy City Manager Assilstant Cilty Manager Hurnan Animal Care Police Resour�ces, Facility Public Works Finance Fire �Info &Tech Community Engineering& Economic Services Services Capital Projects Development I L Li'b ra r�y Development Communications Services, Recreation Successor �Housing J Age,nicy to RDA Authority 2020-04-21 Agenda Packet Page 206 of 421 vi Government Finance Officers Association low—,*A 0-"%k Certificate of' Achi*evement flor Excellence 0 in F-, inancial Reporting Presented to City of Chula Vista to Califfornia For its Comprehensive Annual Financial Report for the! Fiscal 'Year Ended June 30, 2018 Executive Director/CE0 2020-04-21 Agenda Packet Page 207 of 421 Vii 2020-04-21 Agenda Packet, Page 208 of 421 LSL0000 00 INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and Members of the City Council City of Chula Vista, California Report on the Financlall Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each m�ajor fund, and the aggregate remain�ing fund information of City of Chula Vista, California,, (the City) as, of and for the year ended June 30, 20119, and the related notes to the financial statements,, which collectively comprise the City's basic financial statements as listed in the table of contents. Ma�nagement's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design; implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor-'s Responsibility Our responsibility is to express opinions on these financial statements based on our aud�it. We co�nd�u�cted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial aud�its contained in Go�uernment Auditing Standards, issued by the Comptroller Gen�eral of the United States. Those standards requ�ire that we plan and perform the audit to obtain reasonab�le assu�rance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures, in the financial statements. The procedures selected depend on the au�d�itor's jud�gm�ent, including the assessment of the risks of material misstatement of the financial statements7 whether due to fraud or error. In making those risk assessments,1 the auditor cons,iders internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the p�u�rpose of expressing an op I ini I on on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant, accounting estimates made by management, as wel�l as evaluating the overall presentation of the financial statements., We be,lieve that the aud�it evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. P. T.i m e G I q.b.a 11 0000 Ls, L 0 To the Honorable Mayo�r and Me�m�bers of the City Council City of Chula Vista, California 0 inlions P 0 0 In our opinion�, the financial statements referred to above present fairly, in all material respects,, the respective financial position of the governmental activities,, the bu�siness-type activities, each major fund, and the aggregate remaining fund information of the City of Chula Vista, California, as, of June 30, 20�19, and the respective changes in financial position and, where applicable; cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the Ulnited States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America. require that the management's discussion and analysis, the budgetary comparison schedules, for the General Fund and Sundry Grants special revenue fund and Housing Successor Agency special revenue fund, the schedule of changes, in net pension liability and related ratios - miscellaneous, the schedule of plan contributions — miscellaneous, the schedu�le of changes in net pension liabi�l�ity and related ratios — safety, the schedule of plan contributions—safety, and the schedule of changes in the total OPEB liability and related ratios be presented to supplement the basic financial statements. Such information,, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for p,lacing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States ofAmerica, wh�ich consisted of inqu�iries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the bas,ic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us,with sufficient evidence to exp�re,s,s an opi�n�ion or provide any assurance., Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The introductory section, combining and individual �nonmajor fund financial statements, budgetary schedules and statistical section are presented for purposes of add�itional analysis and are not a required part of the basic financial statements., The combining and individual �nonmajor fund financial statements and schedules, are the responsibility of management and were derived from and relate directly to the underlyin�g accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the, underlying accounting and other records used to prepare the b�as,ic financial statements or to the basic financial statements themselvesy and other additional proced�u�res in accordance with auditing stand�ards generally accepted in the United States of America. In our op,inio�n, the combining and individ�u�al nonmajor fund financial statements and schedules are fairly stated, in all material respects in relation to the bas,ic financial statements as a who�l�e,. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and,, accordingly, we do not express an opinion or provide any assurance on them. 2020-04-21 Agenda Packet, 2 Page 210 of 421 0000 Ls, L 0 To the Honorable Mayor and Mernbers,of the City Council City of Chula Vista, California Other�Reporting Required �by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 25, 2020 on our coins ideration of the City's internal control over financial reporting and on our tests of its compliance with certai�n� provisions of laws, regulations,, contracts,,, and grant ag�reem�ents and other matters. The purpose of that report is solely to describe the scope of our testing of internal coin�trol over financial reporting and compliance and the resu�lts of 'that testing,, and not to provide an oplin I ion on the effectiveness of the City's internal control over financial reporting or on compiliance. That report, is an integral part of an audit peirformed in accordance with Government Auditing Standards in considering the City's internal control over financial reporting and compiliance. Brea, California March 25, 201210 2020-04-21 Agenda Packet, 3 Page 211 of 421 2020-04-21 Agenda Packet, Page 212 of 421 CITY OF CHULA VISTA NIANAGENIENT'SDISCUSSION ANDANALYSIS .As management of the City of Chula Vista, we are presenting the readers of this annual financial. report a narrative overview and analysis of the financial activities of the City of Chula Vista for the fiscal. year ended June 30, 2019. We encourage the readers of this, document to consider the information presented here in conjunction with additional information furnished in the letter of transmittal. found in. the introductory section. of this annual. report. FINANCIAL HIGHLIGHTS The following outlines financial,. highlights for the year: L -At June 301 201.9, the assets and deferred outflows, of the City exceeded its liabilities and deferred inflows by $1,438.3 million (net position). Total net position consisted of net investment in. capital. assets of$1,31.9.6, million, restricted. net position of$167.2 million., and unrestricted net position of a negative $48.5 million. 2. Total unrestricted net position for governmental activities was $66.7 million lower than the prior fiscal year, a decrease of 32.36%, whereas unrestricted. net position for business type activities, was $12.3 million higher than the previous year, a 15.66% increase. 3. The City's total net position increased by $64.3 million in fiscal year 2019�, including a restatement of net position. for governmental. activities. The net position for governmental activities increased by a net $57.6 million, while the net position for business type activities increased by $6.7 million. 4. The City's governmental funds reported combined ending fund balances of $289.3 million, an increase of $30.8 million., or 12%, net of a negative $.90 million restatement for fund balance. 5. Total citywide liabilities decreased by $17.5 million. Liabilities, for governmental activities decreased by $18,.2 million offsetby an increase of$.70 million for business-type activities. 6. The City's total long-term debt obligations for governmental activities had a net decrease of $12.5 million or 6.20% during fiscal year 2019. The decrease is primarily due to the principal payments or debt retired in the amount of$13.3 million offsetby new capital leases in.the amount of$.76 million issued during the fiscal year. 7. On June 5, 20�18, the City's voters approved Measure A, a $0.50 sales, tax to fund public safety staffing and services, with an effective date of October 1, 20,18. Sales tax will 'be collected in perpetuity and is estimated to provide approximately $18.3 million annually. Sales tax collected in relation to Measure A totaled $14.1 million for the fiscal year. 2020-04-21 Agenda Packet, 5 Page 213 of 421 OVERVIEW OF FINANCIAL STATEMENTS This, discussion and analysis, is 'intended to serve as an introduction to the City's basic financial statements. The City's, basic financial. statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial. statements. This, report also contains required supplementary information. (.RS1) as well as, other supplemental financial information. Government-Wide Financial Statements The government-wide financial statements are designed to, provide readers with a broad overview of the City's finances, in a manner si.m.ilar to private-sector business. They are comprised of the Statement of Net Position and Statement of' Activities and Changes in -Net Position. The Statement qf' Net -Position presents information on. all the City's assets and deferred outflows, along with liabilities and deferred inflo�ws, with the difference reported as net position. Over time,, increases or decreases in. net position. may serve as a useful. indicator of whether the financial position of the City is improving or deteriorating. This statement combines and consolidates governmental. funds' current financial. resources, with capital assets and long-term obligations. The Statement of A ctivities, and Changes, in Net Position presents information showing how the government's net position changed during the fiscal year. All changes in net pos,ition are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave). The government-�wide financial statements, have separate sections, for three different types, of activities. These three types of activities are: Governmental Activities - The activities in this section are mostly supported by taxes and charges for services. The governmental activities of the City include General Government, Public Safety, Community Development, Public Works, Parks and Recreation and Library. Business-Type Activities — These functions normally are intended to recover all or a significant portion, of their costs through user fees, and charges to external customers, for goods and services. The business-type activities of the City include the Sewer Fund, the Sewer Development Impact Fees, the Development Services Fund, the Chula Vista Elite Athlete Training Center Fund, and the Transit Fund. Discretely Presented Component Units - The City of Chula Vista has no discretely presented component units to report upon. 2020-04-21 Agenda Packet, 6 Page 214 of 421 0 0 Fund Financial Statements and Major Component Unit Financial. Statements A. fund is a grouping of related accounts, that is used.to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with fin.anc e-related legal requirements. All the funds of the City can be dividedinto three categories,: governmental funds, proprietary funds, and fiduciary funds. The fund. financial statements provide detailed information about each of the City's most significant funds, called Major Funds. The concept of Major Funds, and the determination of which are major funds, was established by GASB Statement 34 and. replaces the concept of combining like funds and presenting them in total. Instead, each Major Fund is presented individually, with all Non-major Funds summarized.and presented.in a single column.. Governmental -Fundv — Governmental funds, are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial. statements, governmental,. fund financial. statements focus on near-term inflows and outflows of spendab�le resources, as well as on balances of spendable resources available at the end of the fiscal. year. Such information may be useful in evaluating a government's near-term, financial capacity. Because the focus of governmental funds is narrower than that of the government-�wide financial statements, it is useful to compare the information presented for governmental funds with. similar information presented for governmental activities in the govemment-wide financial statements. By doing so, readers may better understand the long-ten-n impact of the govemment's near-term, financing decisions. Both the governmental fund 'balance sheet and the governmental fund statement of revenues, expenditures, and changes, in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. These reconciliations, are presented on the pages immediately following each goverrimental. fund financial statement. As of Fiscal Year 2018-19, the City maintains numerous governmental funds within the adopted budget and its, financial system. However, for financial reporting, the funds are summarized as follows for presentation purposes: Fu�nd Ca�tego�ry Major Fund�s Non-Major Fun�d�s Tota I Genera! Fund 1 0 1 Special Revenue 2 15 17 Capital Project 1 9 10 D�ebt Service 2 3 5 Permanent 0 0 0 Tota�l Presented 6 27 33 2020-04-21 Agenda Packet, 7 Page 215 of 421 .Each. major fund is presented separately in the governmental fund. balance sheet and. in. the governmental fund statement of revenues, expenditures, and changes in fund balance. Information for the City's remaining governmental. funds is combined. into a single, aggregated "Other Governmental Funds" column. Individual fund data for each of these non-major governmental funds is provided in the supplementary information portion of the report. PropHetary Funds — The City maintains two different types of proprietary funds - enterprise funds and internal service funds. Enterprise funds are used to report the same functions presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its sewer, development services, transit, and Chula Vista Elite Athlete Training Center. Internal service funds are used to accumulate and allocate costs internally among the City's various functions. The City usesinternal service funds, to account for its vehicle fleet., information systems, and workers' compensation. program. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental. activities in.the governmental-wide financial. statements. Proprietary funds provide the same type of information. as the government-wide, financial statements, only in more detail. Like the government-wide financial statements, proprietary fund financial. statements use the accrual basis of accounting. There is no reconciliation. needed between the government-�wide financial statements for business-type activities and the proprietary fund financial statements. Fiduciary Funds — Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the govemment-wide financial. statements, because the resources of those funds are not available to support the City"s own programs. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. Required Supplementary Information In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City"s 'budgetary results for the general fund and all major special revenue funds with an appropriated budget. Required supplementary information also includes trend data for the City's pension plans and other postemployment benefits. Other supplementary information, including combining statements for nonmajor governmental funds,, nonmajor proprietary funds,, internal service funds, and all agency funds, are presented immediately following the required supplementary information. Budgetary comparison. schedules are also included in this section for all nonmajor governmental funds with an appropriated budget. 2020-04-21 Agenda Packet, 8 Page 216 of 421 GOVERNMENT-WIDE FINANCIALANALYSIS Net Posibion .As noted earlier, net position. may serve over time as a useful indicator of a government's financial position. For the City of Chula Vista, total net position (governmental and business- type activities) totaled $1,438.3 million at the close of the fiscal year ending June 30, 2019. This, is a net increase of$64.3 million when compared to the prior year. There was an increasein the City's governmental funds of $57.6 million. and. an. increase in business-type activities of $6�.7 million. A summary schedule follows which shows the components that make up the City's net position at June 30, 2019 and 2018. City o�f Chula Vjista 'Net Posiflon Hscal Year Endiong June 30 ,Giov,e,rTiimienit,,aiil�,Acti�vi�ti�ile�s B,u�si�riiiie�s�,s-'Type,Acti�vi�ti�le�s Totai 210119 201,8 201,9 21013 2018 ,Current As-sets 285,691,101174 221,79,1,"919, 129,773,395 113,2 7 6,199 416,464,469, 3 3 5,1015 8ij 17 No,n­Current Assets 4 8,,5 2 L 7 109, 72,98,01,579, 2 5 4,2 1 101) (3 7101,10167) 4 Si,2 6 7,49S, 72,61101,512 181,11 7 5 1,16,011,101111,13,011 3 2 2,,10&9,,,,7 4,01 327,687,65,01 50113,9,012,9'1115 4 8,7,69,8,7 8,01 ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. TotailkAss,ets 1,517,1012 5,95 8, 1,454,773,627 45 1,6,0118,92 5 44,01,593,782 1"19 681,613 4,8,8,3 8,95,3 67,4,019, ..................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... De�ferre�d outflbvd of rasourcesq 518,1758,1574 7 7 1193 7 11 4 S 2 4,1167,1679, 6,1 7 59,191,611 6,2 P19,2 6,2 5 3 S 411 6,97 11 4 4 3 TotaJ Deferred Outflows 58,758,574 7 7 93 7��,4 82 4,167,679, 6,7 59,9,61 6,2 92 6,2 5 3 8,4,6,97��,4 4 3 CurreM Uabidh�ties 41,40011,58,01 35,429,249, 2,547,1039, 1��,5 8,88,7 13 43,94 7,&19, 3 7 1011 17;9 6 2 No,n-Current Liabi�ities, 497,8,013,29,8, 5 2 1,98,1 97 8, 3 8,39S,5 210, 3 8,65 6,101162 5 3 6,21012,8,18, 5 6,011,63 8,1014011 TotaJ Liabilities 539,21013,878, 5 5 7,411,2 2 7 4,01,946,559 4,01,244,775 5 8,011,1501,4 3 7 5,97,65 6,10,012 Deferred��nflbvjs o,,f rescurces, 11,1'93,4.81 5 7,49,01,2 86 1,:9,17,918, 8,8,2,2 64 13,111,4,013 8,372,55,011 Totai 1�Defe rred[nt[aw,s 1,11,193,4815 7,49,01,286, 1,917,9181 81812,264 '13,111,4,011,3 6,372,55,011 .................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. Net Rositi�on Net�nvestment: 9,97,5 6,111,2 87 29,,,,9,,3 3,501,3 3 2 2,1017 2,495 327,6817,65,01 3,1119,,,,63 3,7 812 3 5 7,62 IR,estr��,,cte d 167,2 21011,1118,4 14 3,95 81;9,"1 1011 67,2 2101,1184 "143,95 81;9,11 101, U n restt�cte d (21016,1011,82,2 117) 9,911 8,39,6 3 2 7 8,1 5 3191,1015 4 (48,115 5 4,167101) 127,1543,1763) T,Dtaii Met Pmitloni $1,102 5,1874.61,9 $ 96117;909,5961, 412,91112'12 7 $-406,226,71C4 $1-P3,74,1036,3010 J, jr .As the table above illustrates, an. amount of $11319.6 million is reported as invested in. capital assets (e.g. land, streets.) sewers, buildings, improvements, equipment and work in progress), less any related debt used to acquire those assets that are still outstanding. The City uses these capital assets to provide services to citizens,- consequently, these assets are not available for future spending. Although. the City's investment in its capital. assets i,.s reported net of related debt, it should be noted that the resources 'needed to repay this debt must be provided from other sources., since the capital. assets themselves cannot be used to liquidate these liabilities. 2020-04-21 Agenda Packet, 9 Page 217 of 421 .A. portion. of the City's net position i.s restricted. for governmental activities — $167.2 million. or 11.6% — and represents resources that are subject to external restrictions on how they 'may be used. Restricted net position. increased $23.3 m.i,.I,.Iion from the prior year mainly due to revenues, exceeding program costs for capital related projects, public safety, and community development programs. Unrestricted. net position represents the portion. of net position. that can. be used to finance daily operations without constraints estab�lished by debt covenants, enabling legislation, or other legal requirements. The remaining balance of unrestricted net position — ($,48.5) rni.1.1ion or (3.38%) — is comprised of($139.,3) million for governmental activities offset by $90.8million for b�usiness- type activities, a decrease of$78.9 rnillion from the prior year. .At the end. of the fiscal year, the City was able to report positive balances for al.l. categories, of net position for its b�usiness-�type activities, however, both the total primary government as, well as the governmental. activities column show a negative unrestricted net position as a result of net pension and total OPEB liabilities. 2020-04-21 Agenda Packet, 10 Page 218 of 421 0,0 Changes in NetPosition The statement of net position provides, a snapshot at a given. point in. time of the assets and liabilities of the City. The other citywide statement provided is the Statement of'Activities, and Changes in Net .,Positio�n. This statement provides the reader with info�rmation regarding the revenues, expenses and changes 'in net position over the fiscal year. Generally, all changes to the City's net position from one fiscal. year to the next flow through. the Statement ofActivities. City of Chula Vista Summary of Changes in Net Position F 0 i.scal Year Ending June 30 Governmental Activities; Busine�ss-Type Attlivities Total ,2019 2018 2019 2018 20,19 2,018 ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ Revenues: IP,rogiram Revenues., Charges for Services $ 42,146,866 52,511,700 54,796,228 49,668,903 9,6,943,094 $ 102,180,603 Operating Grants&Contributions 20,686,6,17 21,246,015 163,380 1014,89,9 20,849,997 21,350,914 Capital Grants&Contributions 27,052,711 33,859,885 33,859,985 General Revenues, Property Taxes 59,841,972 56,512,850 59,8�41,972 56,512,850 Sales Taxes 73,187,780, 57,541,043 73,187,780 57,541,043 Franchise Taxes 12,121,018 11?750,1912 12,121,018 11,750,192 Utility User Taxes 4,88,2,704 5,563,2911 4,882,7�04 5,563,291 Business LicenseTaxes 1,554,970, 1,532,647 1,55,4,970 1,532,647 Transient Occupancy Taxes 4,501,935 4,1,,04,886 4,501,935 4,104,986 Property Transfer Taxes 10514,0117 1P340,086 10514�017 1,340rD86 Construction Taxes 10,629,530, 8,205,054 10,629,530 8,205?054 Investment Earnings, 12,243�,6�85 5,652,663 4,575,679 1,155,739 16,819,364 6,808,402 Miscellaneous 13,963,434 12ffl675,502 252,213 414,69,6 14,215,647 Tra nisfer from Successor Agency (1) - (1) Gain(Loss),Disposal of Capital Assets 102,283 G�0,770 1G3,053 - Total Revenues 284,42.9,5,22, 272,495,813, 59,848,2,70, 51,34�4,237 3,44,277,792 323,8401,050 Expenses: General Government $ 27,922,521 29,311,449, 27,922,521 $ 291,311,449 Public Safety 111,269,341 106,802,130, 111,269,341 106,802,130 Community Development 11,153,109 18,617,269, Community Services - - Public Works 57,563,725 72,192,449, 57,563,725 72,192,449 Parks and Recreation 14,633,191 9,5530392 14,633,191 91,553,3,92 Library 1,007,8�69 1,542,733 1,007,mq 1,542,733 Interest or Long-Term Diebt 6�,740,8 77 70718,905 6,740,877 7,718,905 Sewer Funds 36,815,795 34,857,0166 36,8 15,7 9 5 34,857,066 Bayfront Trolley Station 27 - 27 Transit 160,797 13,008 160,797 13,008 Sewer DlFs 495,865 34,547 495,865 34,547 Devellopmert Services Fund 10,755,535 10,683,709 10,75�5,535 10,683,709 Chula Vista Mini Golf Course - Chula Vista�Elite Athlete Training Ctr 59 5,579 676,260 595,579 Totail Expenses 230,290,633 245,738,327 48,823,571 46,264,617 267,961,095 272,709,415 .......................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................... Increase/(Decrease),iin Net Position Before Transfeirs, 54,138,8�89 26,757,486 11,024,699 5,079,620 65,163,588 31,837?106 Transfeirs 4,339,276 4,170,702 (4,339,276) (4,170,702) - Extraordinary Gain(Loss), - - - - Change in Nat Potiitioih 5118,478,165, lo'g2s,188 6,685,421 908"918 65,161,598 A1,8A7,106 Net Position,Beginining of Year-Restated 96,6,909,004 9,36,881,408 406,226,704 405,3�17,786 1,373,135,708 1,342,,19,9,194 Not�Position,End of Year $ 1,025,387,169 $ 9617,809,5-96 $ 412,912,127 $ 406,226,704, $ 1,438,299,296 $ 1,374,036,30,0 2020-04-21 Agenda Packet, 11 Page 219 of 421 Further analysis is provided within the governmental and business,-type activity sections below. Governmental Activifles Governmental activities increased the City's net position by $57.6 million, which partially offsets, the City's negative unrestricted net position. due to pension. and OPEB related liabilities, and restatements of beginning net position. The City received a total of $8,9.9 million in program revenues from governmental activities in fiscal year 2018-19, a decrease of$17.7 mi.l.l.ion. from the previous year. A comparison of the cost of services by function for the City's governmental activities is shown. in the chart below, along with the program revenues used to cover the net expenses of the governmental activities. Expenses, and Program Revenues Governmental Activities 51,20 10,0, 580 $6�O $40 $20 GenRr�a,l Ru b I i c Saf ety Community �Public'Works P,arks and Library Government Development Recreation NJ Expenses $27,922,521 111,269,341 11,153,109 57,563,725 14,633,191 LOG7,869 ..................."I'l""I'll""I'll'll""I'll""I'll",lI............... ................. ro/ii,Total Program Revenues $5043610906 24�P369199�7 2 5�0 13 6���349 30,271$139 20134019,64 2)536p839 Total program revenues from governmental activities were $89.9 million in fiscal year 2018,-19. Program revenues are derived directly from. the program itself or from parties outs,ide the reporting government's taxpayers or citizenry. They reduce the net cost of the function to be financed from the government's general revenues. A discussion, of the different Program Revenue categories and its components follows. 2020-04-21 Agenda Packet, 12 Page 220 of 421 .0"1 unarges fir Services had a net decrease of $1 O�.4 million for governmental activities, when compared to the previous year. Changes by service category are summarized in the table below. Charges, for Services As of June 30 lncreas,e�/ iecreiasie Servlic�e Categgory, 2,01 9 2 01,8 I'D Ge ne,ir a G ove ir n m le,n t 81,'5 62 F T9 2 (11�3 5 5 7 F;3,9�7) IP"L1 13, i C S a fl,EtV 5 W,8,65 2 2 7 17 8,,'67 4 5 6 8,6,'5 5 3 19 3 3 2) '92101 "1 2 COM M U n ity Dev,el���olament 4,111 7 101,11111 W111"I"!9 5 '17 5 2 7 IP"L1 13 i C"W o,ir k",s 23 1'19 75722 5 6 2 W,84",',1 2 3 4 87 Ra ir k",s,a n d IR,,,,E,c re,a t i o n 2 W,''13 41W19,6,4 ''I 49011"W"2 3 6 644,728, L i la ir�a ry 8,7 7��!17 44 8,72��W'352 5��W'392 3.64,& 4 42,146�p,,0,66 5 2,p S 1,,1,p 700, $1 1110 1113 Totia I Chiia rg, 'e,,S f0f Slervicies Vill P Operating Grants and Contributions for governmental activities had a net decrease of $0.56 million, from the previous fiscal year. Changes by service category are summarized in the table below. Operating Grants and Contributions As of June 30 1n!cr'e,a,se/' Category 2019 2018, (Decrease) General Government $1 324,010, $ 2,204,996 $ 0'�,-880,986) PublicSafety '18,4993,627 1413051,438 41,188,189, Comni�unity Development 1�175,8oS42 4,p643,?084 (2,ji,884j,242) Public'Works 1,1000, 2o,000 (1,0000) 1091"o 90,497' 18�p641, TotaI Operat"IngGrants and Co,ntributions, $ 20,606,617 $ 21,2466110015 (55,91398) Capital Grants and Contributions for governmental activities had a net decrease of$6.8 rnillion. from the previous fiscal year. Changes by service category are summarizedin the table below. Capital Grants and Contribution As of June 30 increase/ Service Category 2019 20,18 (Decrease) General Government $ 10,80001, $ 740527 $ 33P474 Publ[c.Safety 11,143, 18,139 (6,99,6) Community Services 18,676,3�12, 21,855,233 (3,178,91:21) Pu�blic'Works 6,707,298 2,715,972 3,991,326 Parks and Recreation - 608110440 (6P81'10440) Library 1,549,957 2,38�4,574 (834,617) ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................. Total Capital Grants and Contributions $ 27.;05207:11 $ 53,859,885 (61807J74) 2020-04-21 Agenda Packet, 13 Page 221 of 421 10" ueneral.,Revenue,v are al.l. other revenues not categorized as, program revenues such as property taxes, sales taxes and investment earnings. Total general revenues from governmental activities were $194.4 million. in. fiscal. year 201.8-1.9. The largest percentage of general revenues received during the year for governmental activities were taxes of $168.2 million, which included significant amounts for Property Taxes, of $,59.8 million, Sales Taxes of $73.2 million., and. Franchise Taxes of$12.1 million. Taxes 'increased a total of$21.7 million from the prior year primarily due to sales tax related to Measure A that went into effect this fiscal year to fund. staffing and services for public safety. The City's G,eneral Revenues increased as a whole by $29.6 million when compared to the prior fiscal year. While most of the revenue categories increased.moderately from last year, there were significant increases in Property Taxes, Sales Taxes,, Construction Taxes,, Investment Earnings, and Miscellaneous Revenues. These significant changes are described in detail.below. General Revenues As, of June 30 li,i�icreil,,Se/ 201 19 D�ecrea�se)111 Pi,operty Ta��Kes, 5,611�,5,22�..950 311�,3 2,9,11.1 2 2,, Sa es,'Ta�Kess,, 71'3,�,1.97��,7.90 1 646,�.737' F r a nc.111i e T a 111K e:,s 1 2 1 2 11.,75,011 2,19,212 370111,812111116 U t i ty Us,e�r'T a'11K es,, 411111,SUS1112��,704- 5.1��5 6 3 2S,I (63Q,587) �5,us,,i n es,s L i c e ns,e'T a x es,, 1��,5,32 6447" 2 2 3,2 3 'T i,a ns e n t:Occu p a ncy T a�Kes, 10411,396 3,97"11,0419, Property Tra ns,,f e-rTa"Ke,s, 34011,096 2,73�.1,932, Construct���an Ta"Kes,, 101. S111112 05..054 2,��,42,411,4'76 ��nves,tment:Earnings, 1 2 2,4311�,635, 5��.61,52 663 2,, M��[,_s,c e a n e o,us, 23�.1,9,631�,434 1 61117,5�,502, 2.971'�.1,932, Revenues 11914�441..;,045 5 29,.1 51162,A,831, The increase in property tax revenue can be attributed mainly to an increase in total assessed property value combined with a significant decrease county-wide in, the total number of foreclosures in comparison to the prior year. The increase in sales tax revenue is largely attributable to the co�llection of the City's 0.5% Measure P transaction, and use tax to fund asset replacement as well as the new collection of Measure A sales tax that into effect October I 1 2018. Transient Occupancy Taxes increased due to the opening of a new hotel in the eastern portion of the City. The increase in Construction Taxes is primarily due to an increase in development activity in the fiscal year. The increase in Investment Farnings was largely due to a higher yield on the City's investment portfolio, along with a larger portfolio as reflection of bond proceeds' investment. Lastly, Miscellaneous Revenues increased due to revenue reported as unavailable revenue in the governmental funds and reco�gnized in the statement of activities. 2020-04-21 Agenda Packet, 14 Page 222 of 421 Total governmental activity type expenses were $230.3 million in fiscal. year 201.8-1.9�. The largest expenses were incurred for Public Safety, Public Works and General Government. These three activities combined. account for 85.44% of all general activity expenses. These expenses do not include capital outlays, which arereflected in the City's capital assets. 'e�,ntal"],, ',",,E,xpeii,se,,s 'by Actlmv�'Ilm ty, Governlin co mm m I'Ll�ri�� Development 2 S% 5% FarR s and Rac�reafio)�,n GC/S Li bii rs ry ��P L b I i c 9 a fety I n t e�r est n n Lo n g--Terrri� 48% Debt� 3% Geneiral Goverrrrient 1 2% Business 'Typ�e Activities Net position for business-typ,e activities was $41.2.9 million., an increase of$6.7 millio�n from the prior fiscal. year. Overall expenses, for the b,usines,s-�type activities showed a $,2.5 million increase over the previous fiscal year primarily related to sewer program costs. Total program revenues for blusiness-typie activities were $54�.8 million and are composed primarily of sewer fees ($4�5.5 million) and development fees ($9.3 million),. Total expenses for the 'business-type activities were $48.8 million and were mainly for expenses related to Sewer ($36.8 million) and processing of development permits and plans ($10.8 million). 2020-04-21 Agenda Packet, 15 Page 223 of 421 FUND LEVEL FINANCIAL ANALYSIS As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal. requirements. Governmental Funds The City uses governmental. fund. accounting to ensure compliance with budgetary allocati.ons and to maintain control over resources that are legally, or otherwise, restricted for specific purposes,. The following is a discussion. of the significant changes, for the City's major funds as shown on the balance sheet for governmental funds in the basic financial statements. General Fund— The General Fund is used to account for the general operations of the City. It is used to account for all. financial. resources, except those required to be accounted for in. another fund. The General Fund is always reported as a major fund. For the fiscal year, the General Fund. reported $,1.88.1. m.i.l1ion in revenues and $1.84.9 milhon. in expenditures, resulfing in revenues over expenditures in the amount of $, 3.2 million. After accounting for 'net other financing sources, of $7.5 mi.1l.i.o�n., the fund balance for the General Fund. increased by $10.,7 million primarily due to the increase in sales tax related to, Measure A that went into effect th.i.s fiscal. year. Total. fund balance at June 30, 2019 was $118.9 million., composed. of$136.0 m.illion. in. assets offset with $8.5 million in liabilities and $8.6 million in deferred inflows of resources. Total fund balance included $7.6 mflli.on of nonspen-dable, which represents, that porti.o�n. of fund balance that is 'not available for appropriation. Committed fund balance totaled $46.4 million, including $39.1 million committed to various capital projects and $7.3 million committed for economic contingency. This portion of fund balance includes amounts that can only be used for specific purposes, pursuant to constraints imposed by formal action of the City Council and remains binding unless removed in the same manner. Assigned fund balance, totaling $41.5 million, represents that portion of a fund balance that includes amounts that are constrained by the government's intent to be used for specific purposes, but that are neither restricted nor committed. The City Council has delegated its authority to assign, fund balance amounts to the City's Director of Finance. The final component of total fund 'balance is unassigned fund balance. Totaling $23.4 million, this is the portion of fund balance that is, available for appropriation for any purpose. Sundry Grants Fund�— The Sundry Grants fund is to account for miscellaneous grants such as: Supplemental Law Enforcement Services, California Library Services Act, Public Library Act, Asset Seizure,, Local Law Enforcement Block Grants, federal library grants, waste management and recycling, energy conservation, parks and recreation, social service grants, Gayle McCandliss memorial cultural arts, federal assistance, CDBG program income projects, HOME project, and Community Development Block grants. The Sundry Grants fund had total revenues of$20.8, million. and expenditures of$13.2 million, resulting in revenues over expenditures in the amount of $7.6 million. The Sundry Grants fund balance increased by $5.9 million for the fiscal year, after accounting for net other financing uses of $1.7 million and a restatement of ($0.5) million. Total fund 'balance at June 30, 2019 was 2020-04-21 Agenda Packet, 16 Page 224 of 421 $9.9 million composed primarily of restricted fund balance, except for a small amount of 0 1 nonspendable fund balance comprised of prepaid costs. Housing Successor Agency Fund — The California legislature voted to end 'redevelopment agencies onFebruary 1, 2012. This fund was, created. as a result of the dissolution process and was formerly known as the Low and Moderate Income Housing Fund., The City opted to become the Successor Agency to the Redevelopment Agency and. to the Low and Moderate Housing Successor. For the year, this fund had total revenues of $2.5 million composed primarily of interest earnings, property rentals and loan repayments from affordable housing projects. Total. fund balance as of June 30, 2019 was $12.8 million, a $2.5 million increase from the prior year, composed entirely of restricted fund balance. Development Impact -Fee -Fund — This fund. was established as, a depository for various development impact fees (DIFs). The fees are levied against all new development in the City in order to pay for the construction. or improvement of public facilities as a result of City growth.. Revenues for this fund. totaled $1.8.1 million attributable to building permit fees for new development. Expenditures totaled $4.2 million, composed primarily of capital expenditures on Telegraph Canyon. Drainage, Transportation. DIF, and the Western Transportation D�IF, which. combined for $3.5 million. Total fund balance increased by $9.3 million for the year. At June 30, 2019, fund balance in the amount of $55.0 million was presented as, restricted fund balance related to various capital projects for public facilities due to new development. Proprietary Funds The City's Sewer Fund is reported as a major fund on the Statement of Net Position for Proprietary Funds in the basic financial statements. Sewer Fund— The Sewer fund is, used to account for all activities related to providing sewer service to the residents of Chula Vista. Resources for the fund come primarily from sewer service charges, paid for by -users, of the system. For the fiscal year, operating revenues totaled $44.4 million, an increase of $6.3 million from the prior fiscal year. In addition, non-operating revenues totaled $4.4 million which included interest income and a gain, on disposal of capital assets. Operating expenses totaled $36.9 million for the fiscal year, with the most significant cost related to the wastewater treatment by the City of San Diego in the amount of$29.3 million. After accounting for all revenues and expenses, both. operating and non-operating, net pos,ition of the fund increased by $,8.9 million for the year, totaling $252.2 million as of June 30, 2019. Of total. net position, $125.2 million is, designated for sewer system infrastructure such, as pump stations, sewer lines and other related equipment and therefore not available to fund the day-to- day operations of the sewer system. Current assets total $,123.8 million., comprised of cash and investments ($116.2 million) and accounts receivab�le ($7.7 million). Fund liabilities at the end of 2020-04-21 Agenda Packet, 17 Page 225 of 421 the fiscal year totaled $1.6.3 million., of which $1.7 million were considered current liabilities,. The fund had no outstanding bonded debt. Sewer Development Impact Fe�e Fund — This fund was established as a depository for sewer development impact fees. The fees are levied against all new development in the City in. order to pay for the construction or improvement of public sewer facilities as a result of City growth. Operating'revenues totaled $1.,3 million. "In addition, non-operating revenues, and expenses netted together for a total of $31 million. in expenses over revenues mainly due to interest expense greater than interest 'income for the year. Operating expenses totaled $20,000 for the year, comprised of administration. and depreciation.. Net position of the fund was negative $14.3 million primarily d ue to an interfund, loan. and was comprised of $4.2 million in assets and $18.6 million in liabilities. There are no deferred outflows, or inflows. .Development Services Fund — This fund. accounts for revenues and expenses related to the processing of development plans and permits. The fund is comprised of three divisions, Planning, Building, and. Engineering, which provide direct services to property owners, developers,, and the City as required for the entitlement and/or improvement of property. The services provided encompass most development activities, including land use entitlements-, public infrastructure, open sp�ace, and landscape planning; public infrastructure construction, grading and building permits. Operating revenues totaled $9.4 million and were primarily comprised of permits, and fees. Operating expenses totaled $10.8 million for the year, mostly comprised of personnel service costs. Nonoperating revenues and expenses were comprised of interest revenue. The sum of all transfers reflect funding to and from other funds for subsidies and overhead expenses. Net position of the fund was negative $21.5 million primarily due to, long-term pension liabilities. Assets, (both current and noncurrent) totaled $1.7 million. Current liabilities were $0.73 million and were largely attributed to compensated absences accrual ($0.3 million), accrued liab�ilities, ($0.2 million), and accounts payable ($0.25 million). Noncurrent liabilities ' il' * I the deferred totaled $ 23.9, million and were mainly due to pension liab ities. Likewise, outflows and inflo�ws, $2.6, million and $1.2 million, respectively were pension,related. Chula Vista Elite Athlete Training Center, (CVEA TC) Fund — This fund was established to account for the CVEATC's activities in partnership with Elite Athlete Services, the CVEATC operator. Net position decreased by $.44 million from the prior year mainly due depreciatio�n. expense and administrative costs. This fund's primary asset consists of the land and facilities held for the Chula Vista Elite Athlete Training Center in the amount of $196.7 million. Current liabilities totaled $0.2 million. Net position of the fund was $196.7 million primarily due to the facility contribution from the US Olympic Committee in January 20 17. 2020-04-21 Agenda Packet, 18 Page 226 of 421 GENERAL FUND BUDGETARY HIGHLIGHTS The final amended general fund budget totaled $259,117,874 including $33,161,792 in budget amendments to the originally adopted budget and. encumbrances of$25,789�,927 which. will fund contractual obligations, and outstanding purchase orders. The budget amendments occurred because of: modification of spending specific to Measure .A., the City's, half cent sales tax which will fund public safety staffing; Measure P, the City's half cent sales tax which will fund infrastructure repair/replacement over the next several. years; staffing and. organizational changes within various City departments; transfers out to other funds; and new supplies and services appropriations, approved subsequent to budget adoption.. The General. Funds' budget amendments of$33,16�1,792 are summarized as follows: Resolution E,Xpeniditure ,,20 1 180 CIP'Traiisfer MeasLire P) $�10 ,,20 18-2 0 1 Cl PAI 10 C31i 0 11 S 1/0 e 3,S L,i r e P) $316731"76 9 ,,20 18-2,26 Fi rst Q11 3.rte r Bu dg etAdj L,l StM e 11tS $3 17 9 1.2 20 18-2 57 Appropriatimis(f/Oe3SUre,A) 7 78 755 ,,20 19-0 10 MTSAppropri3ti011 D,i g i i,,i e e ri i,,i g) 8 0 0 0 0 ,,20 19-02 8 Se co i,,i d QU 3,,rte r BLI dg etAd]L,l StM e 11tS $,21 154.1 57".4. ,,20 19-0 12 IN EEF G r3]"It(,,Eco i,,i o im i c D eve I o pim e illit) $1,51000 ,,20 19--.0 4 6 SANDAG Bi Ike Grailit Eco iiii o im i c D eve I o pim e illit) $1,3000 ,,20 19-0,46 C31111111111311,bi SAppro pri 3,ti 0 I'll (�Fl I'll 3.1111 Ce) $15 3 915,0 0 ,,20 1 9�­O 55, C��IP,A,ppropri3,tioillis/,Tr3,,Illlsf"ers 1/0 e 3,S Lii r e P) $1,30 ,,20 19-0 6 1 B R.T(PLI b�I i c IN o r Ik s $1,201060 ,,20 19-,l 0 4 Th i rd QL1 3,rte r BU dg et,Adij L1 StM e 111tS $1,47"0 1 342 ,,20 19-.0.4 4,, Appropriatioili for Fire St2ftlll 0' E,,iiii g i iiii e e r i 1111 g) $15301000 ,20 1 9�­O 6 3 StO­Ti im eAl 10 C3,ti 0 1111(Fire) $1,25,1852 ,2 0 19-19 1 1 FY.2 0 19 Y e 3.r-E,,n d B Lii d g e t,A dij L1 S t M e I'll t S $1,5,1 1521"4 5,9] TOTAL 111GEN ERAL FU N D BU DGETAMEN DMENTS, S 33 116 1,"T 9,21111 CAPITAL ASSETSAND DEBT' ADMINISTRATION Capital Assets, The City's investment in capital assets for its governmental and business type activities as of June 30, 20�19, amounts to $1,503.9 million, net of accumulated depreciation. of$6�39.4 million. This investment in capital assets includes land, buildings,, improvements, machinery and equipment, infrastructure and construction. in progress. Infrastructure assets are items that are normally immovaoie and of value only to the City such as roads, bridges, streets and sidewalks, drainage systems,, lighting systems and similar items. The total. change to the City's investment in capital assets for the current fiscal year was an increase of$16.2 million, net of accumulated depreciation.. Additional information. on the City's capital. assets can be found in Note 5 of the Notes to the Financial Statements. 2020-04-21 Agenda Packet, 19 Page 227 of 421 .Debt Adininistration .Long Term Debt - At June 3 0, 201.9, the City had. $1.8 8.8 million in debt outstanding compared to $201.3 million last year, a net decrease of $12.5 million or 6.20%. This decrease is due to payments, for principal in. the amount of $1.3.3 mi1lion. offset by new capital leases for $.76 million. A majority of this debt is in the form of Lease Revenue Bonds ($85.,4 million), and Certificates of Participation ($74.8 million). The remainder of the outstanding Iong-term debt is in the form of a CDBG- Section 1018 Loan, bond premium, notes payab�le, and capital lease obligation.s. The City has,no outstanding general. obligation debt. .As of June 30, 201.9, the City has, maintained its AA- rating by Standard & Poor's for Certificates of Participation, which represents a stable outlook. In addition, the Chula Vista Municipal. Financing Authority maintained its AA- rating while Chula Vista Public Financing Authority is rated BBB by Standard & Poor's. Additional information on the City's long-term debt obligations can be found in Note 6 of the Notes to the Financial. Statements. ECONOMIC FACTORS AND NEXT YEAR'S BUDGET 0 Assessed Valuation and Pro�perty Tax According to the County of San Diego Assessors' Office, the city's total assessed valuation (both secured and unsecured) for the 2018-�2019 fiscal year was $29,9�82,388,69�6. This is an increase of$11620,9551692, or 5.72% over the 2017-20118 assessed valuation. It should be noted that assessed value was set as of January 1, 2018. Actual current secured property tax revenues for the 2018-19 fiscal. year totaled $34.5 million, which is $2.2 million more than collected in the prior year. Building Activity The valuation of all 'building and related permits totaled $321.4 million for the 20118-19 fiscal year. This is approximately 60.2% less, than the valuation of $806.9 million. for these permit categories in the prior fiscal year. .A.s o:lf Ju e��3 G "2 G 18, C',",h alln,ge�� Sli Clb a� ge�� 0/0 Bi�u lld�I g'P e��rint� �t Val ua tio�111111 2 0,11.9 '.R etsiid enti,at 1,91 1��:09,8 5�:�894. 543�:V'123 5�:011091 1� $.,,('3 5 1,:k112491:a 191"7) o�4_7' 'Ni,on,,­'R esilldeanti2d, 391,6� '7146 18,611 :�8.2 1,:03 3 2 585 790 200�� Aid, oias/ ,kherafiiola./s 910 016-S '7`7"7' :,114314�:, 7`611�� 3,6114� 17"...8 DiemoEfionns/ 1,6,61�11::010110 4 "90 "Tiatal 3 2 1,:03 8 3�Z'4�17' $.,,(',4 85�5 19�:a3,61 2020-04-21 Agenda Packet, 20 Page 228 of 421 The issuance of building permits is a result of several different factors, the largest of which are market based. Permits are not pulled unless there is sufficient demand 'in the 'market or the builders are able to sell. the homes for a sufficient price to cover costs and a profit margin. The other factor impacting the issuance of building permits is the development timeline, and whether the developers have all. the necessary approvals in place to move forward. with construction. Building permit activity in 2019 were on par with the 2017 numbers. The 2018 building permit activity were higher mainly due to the developer's having entitlements ready as well as an available market for them to construct the homes. Local Economy The San Diego area economy showed signs of continued improvement over the past year as indicated with decreased. unemployment. According to the U.S. Bureau of Labor Statistics, the seasonally unad.usted unemployment rate in San Diego County was 3.3 percent 'rate in June 2019, which. is lower than the 3.6 percent rate recorded one year ago in. June 201-8. The regional unemployment 'rate for June 2019 remained below both the State and national unemployment rates. Califomia's, pace of job growth in the first half of 2019 has been. slower thanrecent years according to Beacon Economics. The consumer price index for the greater San Diego area showed an increase of 3.4 percent for the calendar year 201.8, which is greater than. the 3.0 percent rate for calendar year 201.7. Consumer price index information for the San Diego area is only 'released twice each year, June and December. The consumer price index for the first half of calendar year 201.8 increased at an annual rate of 3.0 percent, whereas the second half of the year showed a rate 'increase of 3.7 percent, resulting in the overall total rate for the year of 3.4 percent. For the first half of calendar year 2019, the rate increased at an annual rate of 2.8 percent. In June 2019�, the region's housing market reported 1,880 existing single-family homes sold, which was 16,.3 percent less than the prior year, which reported 2,247 single-family homes sold in June 2018. O�n average, single family homes in the region were on the market for 27 days in June 20191 an increase of I day of market time in comparison to June 2018,. The median price for the region in June 2019 was $674,900, an increase of 3.2% compared to one year ago, when the median price was $654,000. The table below presents the City's five zip codes median listing price for single family homes comparing data for June 2019 and July 2018. This information was obtained from Zillow Inc., a company that tracks and analyzes real estate markets. 2020-04-21 Agenda Packet, 21 Page 229 of 421 D�ata fo�r June 201.9 Compared to July 201.8 M ed ia n Price �Zi P C110d e Loca I e 2019 201's Percent Chi,a ngE?1 9 1:9 10 N o rt,�h 52:9,,691, 547�p,000 3,N 2% '91,911, South 487,05,61 49,19,1"'gwo -2,4% 91,913 Eastlllak e 5,616h�pO35, 5,53��p'900 2.2% '91314 N El" 6683��p 148, 73QpGOO 61.4% '919,15 S Ell 547�P9,78, 514�P'195)0 61.4% .As of the issuance of the CAFR, the San. Diego County as well as the entire nation, was dealing with a global pandemic as declared by the World Health Organization in early March 20,20. Our City continues to closely monifor the spread. of the novel. coronavirus (COVID-19), and has implemented certain measures, to help ensure the health and safety for our employees and the public we serve. This is an emerging situation and any significant effect on. financial position. or results of operations cannot be determined at this time. Fiscal Year 2018-119 Budget The City ended the 2018-19 fiscal year with an unassigned fund balance of$23.4 million and a committed fund. balance of$46.4 million, including $3 9�.1. million. in Measure P bond proceeds, and transaction & use taxes, and $7.3 million for Economic Contingency Reserves within the General. Fund.. In June 201.9, the Chula Vista City Council adopted the fiscal. year 201.91-201 budget which provides $387.3 million 'in appropriations to fund all City activities. The General Fund budget total is $1.97.01 million. The City continues to adopt a one-year budget. The City's property tax values, continue to recover from. the late 20�O�O�'s, national mortgage crisis and recession. Based on information received from the San Diego County Assessor, Chula Vista's projected change in. total. assessed value for fiscal year 2019-20 is 6.02% compared to 2018-1.9 total assessed values. Management budgeted anticipated property tax revenue growth in.2019-20 at 3.0% greater than 2018-19 budgeted revenue. REQUESTS FOR INFORMATION' This financial report is designed to provide a general. overview of the City's finances, for all of its citizens, taxpayers, customers, investors and creditors. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the City of Chula Vista, Finance Department, 276 Fourth Avenue, Chula Vista, California 9,19,10. 2020-04-21 Agenda Packet, 22 Page 230 of 421 "DA,SIC FINANCIAL STATEMENTS 2020-04-21 Agenda Packet 23 Page 231 of 421 2020-04-21 Agenda Packet, 24 Page 232 of 421 AOVOM% A*�� uuVERNMENTmwWIlDE FINANCIAL STATEMIENTS 2020-04-21 Agenda Packet 25 Page 233 of 421 2020-04-21 Agenda Packet, 26 Page 234 of 421 CITY OF CHULA VISTA S'I`ATEMENTOF NETPosrrION JUNE 3�0,2019 Primary Government Governmental Business-Type Activities Activities Total ASSETS Current assets: Cash and investments $ 227,91 9�,777 S 1221115,653 350,035,,430 Receivables: Accounts 5,,107,452 7,657,742 12,765,194 Taxes 1719 11,727 - 17,9 11,727 Accrued interest 592�9 18 - 592,918 Det�rred loans 54,,102i28,6 - 54�1 02�28,6 Allowarice for uncollectible loans (38,,9�51,013) - (38,9�51,013) Due firom Successor Agency of Chula Vista RDA, 10,109,831 - 10,1 09�,831 Prepaid costs 215,282 - 215,282 Due from other governi"nents 9,682,814 - 9,682,814 Total Current Assets 286,691,074 129,773,395 416,464,469 Non-current assets: Restricted assets- Cash and investments, 818,490 - 818,490 Cash with fiscal agent 47,449,009 47,449,009 Internal,balances 254,210 (254,2,10) - Capital assets not being depreciated 526,719,322 184,466,251 711,185,573 Capital assets,net of depreciation 655,093,853 13716231489 792,717,,342 Total non-CUrrent assets 1,230,334,884 321,1835i530 1,552,170,,414 Total Assets 1,517,025,958 451,608,925 1,968,634,883 Deferred Outflows of Resources: Deferred charge on refunding 4,573,448 - 4,573,448 Deferred items related to pensions 53,677,220 4,111,322 57,788,542 Deferred iterns,related to OPEB 507,9�06 56�357 564>3 Total Deferred Outflows of Resources 58,758,574 �4,,167,679 62,926,253 LIABILITIES Current liabilities: Accounts payable 10,645,9,38 688,315 11,334,253 Accrued liabilities, 3,549�,135 3161674 3,865,809 Accrued interest 1,713,220 - 1,713,220 Retention payable 617X5, 531128 6705503 Unearned revenue 846,5149 '1,047,145 1,893,694 Compensated absences due within one year 5�876�389 441�777 6�3 185166 Claims payable-due within one year 4,000,000 - 4,000,000 Developer deposits payable 1�484�478 1,4845478 Short-term portion ol"bonds,leases,and notes payable 12,667,496 - 12,667,496 Total current liabilities 4111400�580 25547,1039 43,947�6 19 Non-current liabilities: Compensated absences-due in more than one year 2,118,442 213,454 2,3�3 1,896 Claims payable-due in more than one year 20�237�293 - 20,237,,293 Total OPEB liability 14,346�,358 '1,591,855 15,938,213 Net pension liability 284�9�43�365 36�57611966 321,520,,331 Long-term portion of bonds,leases,and notes payable '176,157,840 '17,245 '176,175,085 Total non-current liabilities 49711803�298 38�39911520 536,202�818 Total Liabilities 539403,878 401,946,559 580,150,437 Deferred Inflows of Resources: Deferred itenis related to pensions 11,193,485 '1 917,918 13,111,403 Total Deferred Inflows of Resources 111)193,48-4; 1,917,918 13,111,403 Net Position: Net investment in capital assets 9�97,561,287 322,072,49�5 1,319,633,,78�2 Restricted for: Community development projects 28,464,496 28,464,496 Public safety 8,689�,108 8,689,108 Parks and recreatioji 1,6�52,749 1,652,749 Capital projects 128�271�540 128,271�540 Debt service 118,317 118,317 Library 23�9�74 - 23��974 Unrestricted 13 9,3 94,3 02) 90,839,632 (48,554,670) Total Net Position $ 1,025,387,169 $ 412,912,127 $ 1,438,299,296 See 27 Page 235 of 421 CITY OF CHULA VISTA SI'ATEMENTOF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30,,2019 ........Program Revenues Operating Capital Total Charges for Contributions Contributions Program ...........Expenses Services and Grants and Grants Revenues Functions/Prograrns Primary Government: Governmental Activities: (J"eneral government 27,922,521 $ 5,0�04,895 S 324,010 108,001 $ 5,436,9�06 Public satiety I 11 1�269,341 5,865,227 18,493,627 1 L143 24,369,,997 Community development I I�153,109 4,701,195 1,758,842 18,676,,312 25 i 136,349 Public works 57,56�3,725 23,562,841 I'mo 6,707,,298 30,271,139 Parks and recreation 14,633,191 2,134,964 - 2i 134�9�64 Library 1,007,8,69 877,,744 109 138 1,549,9�57 2,536,839 Interest on long-term debt 6,740,877 - - - - Total Governmental Activities 230,290,633 42,146,8,66 20,686,617 27,052,711 89�,886,194 Business-Type Activities: Sewer Fund 365815,795 44,,213,351 - - 44,213,,351 Sewer Development Impact Fees 495,865 1,265,579 1,265,579 Development Services Fund 10,755,535 9,317,298 9,317,298 CV E'lite Athlete Training Ctr 595,579 - - - ,rransit Fund 160,797 163,,380 163,380 Total Business-Type Activities 48,823,571 54,796,228, 163,380 - 54,959,608 Total Primary Government 279,114,204 96,943,094 20,8�49,9�97 S 27,052,711 $ 144,845,8�02 General Revenues: Taxes: Property taxes,l,evied for general purpose 1'ransient occupancy taxes Sal,es taxes Franchise taxes Business licenses taxes Utility users tax Residential Construction tax Property transt'er tax Investment earnings Miscellaneous Gain on sale of capital asset Transfers Total General Revenues and'Irransfers Change in Net Position Net Position at Beginning of"Year Restatement of Net Position Net Position at Beginning of Year,as restated Net Position at End of Year See 28 Page 236 of 421 ,,Net(Expenses)Revenues and Changes in Net Position Primary Government Governmental Business-Type Activities Activities ro�tai S (22,485,615) $ - s (22,485,615) (86,899,344) - (86,899,344) 13,983�,240 - 13,983,240 (27,292,586) - (27,292,586) (12,498,227) - (12,498,227) 1,528,970 - 1,5281�970 (6,740,877) - (6,740,877) (140,404,439) (140,404,439) 7,397,556 7,397,556 769,714 769,714 (1,438,237), (1,438,237), (5 9 5,5 7 9) (595,579) 2,583 2,583 6,136,037 6,136,037 (140,404,439), 6,136,037 (134,268,402) 59,841,972 - 59,841,972 4,501,935 4,50 1,935 73�,187,780 73,187,780 12,121,018 12,121,018 1,554,970 1,554,970 4,882,704 4,882,704 10,629,530 10,629,530 1,514,017 - 1,514,017 12,243�,685 4,575,679 16,8195364 13,963,434 252,213 14,215,647 102,283 60�770 163,053 4,339,276 (4,3 3 9,2 7 6) - 198,882,604 549,386 19�9,431,,990 58,478,165 6,685,423 65,163,588 967,809,596 40�6,226,704 1,374,036,300 (900,592) - (900,592) 966,909,004 40�65226�704 1 X3,1355708 $ 1,025,387,16,9 $ 4121912,127 $ 11438,299,296 See 29 Page 237 of 421 2020-04-21 Agenda Packet, 30 Page 238 of 421 -'k "r FUND F',INANCIAL STATEMENTS 2020-04-21 Agenda Packet 31 Page 239 of 421 2020-04-21 Agenda Packet, 32 Page 240 of 421 u'O�OVE,RNMENTAL FUND FINANCIAL STATEMENT'S 2020-04-21 Agenda Packet 33 Page 241 of 421 CITY OF CHULA VISTA BALANCESHEET GOVERNMENTAL FUNDS JUNE 30,2019 Capital Projects Special Revenue Funds Funds Housing Developinent General Sundry Grants Successor Ageng ......Impact Funds Assets: Pooled cash and investments 53,771,019 $ 11,434,,025 10,553,691 $ 57,552,488 Receivables: Accounts 4,630,748 - - "Faxes 16�,871,985 Accrued interest 489,052 - - Deferred loans - 23,373,199 241�985,704 1,033,371 Allowance for uncollectible loans - (17,810,765) (17,722,547) - Prepaid costs 211,005 4�,277 Due from other governments 391,246 41292J48 Due from other funds 908,632 Advances to other funds 1,528,748 - Restricted assets: Cash and investments - 26,08�O 792�4 10 Cash and investments with fiscal agents 38i298,041 - Due from Successor Agency of Chula Vista RDA 9,,8�8�5,147 - 224,684 - Total Assets 135,965,623 $ 21,318,964 $ 18,833,942 $ 58,585,859 Liabilities,Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ 55267,656 9291,139 $ 144 $ 4851218 Accrued liabilities 3,237,105 26 1,592 - - Unearned revenues - 36 1,265 3941643 Retentions payable - - 121�1250 Deposits payable - - - Due to other funds - 4,341,593 - Advances from other funds - - - 155281748 'Total Liabilities 8,504,761 5,893,589 144 2,529,859 Deferred Inflows of Resources: [Jnavailab,le revenues 8,586,425 5,475,,391 6,024,265 1,033,371 'Total Deferred Inflows of Resources 8,586,4�25 5,475,391 6,024,265 1,033,371 Fund Balances: Nonspendable: Prepaid costs 211,005 4,,277 - - Due from SUcessor Agency of Chula Vista RDA 5,8,38,,333 - Advances to other funds 1,528,,748 - Restricted for: Community development proJects - 1,522,8,25 12,809,533 Public safety - 6,958,8,44 - Parks and recreation - 1,440M64 - Capital Projects - 55,022,629 Debt service - - - Library - 23�974 Committed to: Capital ProJects 39,087,0�09 - Debt service Econornic contingency 7,28,3,745 - - - Assigned to: General government 6,410,034 - - - Public safety '1321278 - - - Parks and recreation '141297 - - - Public works 46,241 - - - Public liability 573,157 - - - Measure P Sales'Fax 23,067,521 - - - Endownients 11,303,210 - - - Unassigned 23,378,859 - - - Total Fund Balances 11 8�,874,4�37 9,94�9,984 12,809�533 55,022�629 Total Liabilities,Deferred Inflows of Resources,and Fund Balances $ 135,965,623 21,318,964 $ 18,833,942 $ 58,585,859 See 34 Page 242 of 421 CITY OF CHULA VISTA BALANCESHEET GOVERNMENTAL FUNDS JUNE 30,2019 Debt Service Funds Municipal Other Total Public Financing Financing Governmental Governmental Authority Authority ....... Funds Funds Assets: Pooled cash and investments 3,659 $ 411 87,333,502 220,648,795 Receivables: Accounts - 159�411 314,209 5,104,368 "Faxes - - 1,039,742 17,911,727 Accrued interest 56,420 - 471446 592M 8 Deferred loans - 4,710,012 54,102�286 Allowance for uncollectib,le loans - - (3,417,701) (38,9�51,013) Prepaid costs - - - 215,282 Due From other governments - - 4999420 9,682, 814 Due From other funds - - 9,888,632 Advances to other funds - - 1,528,748 Restricted assets: Cash and investments - - 818,490 Cash and investments with fiscal agents 5,159,551 911 3,666,381 471124,884 Due from Successor Agency of Chula Vista RDA - - - 101109,831 Total Assets 5,219,630 $ 160,733 $ 98,693,011 $ 338,777,762 Liabilities,Deferred Inflows of Resources, and Fund Balances: Liabilities: Accounts payable $ - $ 35613,680 $ 10129�55837 Accrued liabilities - 18,650 3,517,347 Unearned revenues - 90,641 846,549 Retentions payable - 496,125 617,375 Deposits payable - 15484,478 11484,478 Due to other funds 1,223 159,411 4,759,929 9,262,156 Advances frorn other funds - - - 11528,748 'Total I.,iabilities, 1,223 159,411 10,463,503 27,552,490 Deferred Inflows of Resources: [Jnavaila,ble revenues - - 849�471 21,9�68,923 Total Deferred Inflows of Resources - - 849,471 21,968,923 Fund Balances: Nonspendable: Prepaid costs - - - 215,282 Due from SUcessor Agency of Chula Vista RDA - - 5,838,333 Advances to other funds - - - 1,528,748 Restricted for: Community development proJects - - 14,132,138 28,464,496 Public safety - - 1,730,264 8,689,108 Parks and recreation - - 212,685 1,652,749 Capital Projects - - 73,248,9 11 128,271,540 Debt service - - 139,480 139,480 Library - - - 23,974 Committed to: Capital ProJects - - - 39,087,009 Debt service 5,218,,407 15322 - 5,219,729 Econornic contingency - - - 7,283,745 Assigned to: General government - - - 6,410,034 Public safety - - - 132�278 Parks and recreation - - - 14�297 Public works - - - 46,241 Public liability - - - 573,157 Measure P Sales Tax - - - 23,067,521 Endowments - - 641202 11,367,412 Unassigned - - (2�147,643) 21,231,216 Total Fund Balances 59218A07 113�22 87,380,037 289,256,349 Total Liabilities,Deferred Inflows of Resources,and Fund Balances $ 5,219�630 160,733 $ 9816,93,011 S 338,777176,2 See 1�0!nJ�#4F#1ap(4&*ttRk*s 35 Page 243 of 421 2020-04-21 Agenda Packet, 36 Page 244 of 421 CITY OFCHULA VISTA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION JUNE 301 20,19 Fund balances of governmental funds, 289,256,349 Arnounts reported for governmental.activities in.the statement of rtet position are different because: Capital assets net of depreciation have not been included as financial resources i.n.govern rnenta I ffin d activity. 11 1.8 1.i448,1254 Deferred outflows related to pension items 5313661411 Long-term debt and compensated absences that have not been included in the governmental ftind activity: Bonds payable $ (160,175,000) Section 108 Loan (5,886,000) Unamortized bond p�remi u ms/d i sco tints (I 4,774,289�) Capital leases (5,243,990) Claims liability (24,237,293) Notes payable (2,746,057) Net pension liability (282,178,216) Total OPEB liability (14,220,272) Compensated absences (7,954,580) (517,415,697) Deferred,outflows related to the refunding of long-term debt. 41,�573,448 Deferred,outflows related,to OPEB items 503�443 Accrued interest payable for the current portion of interest due on Bonds has not been reported in the governmental funds. (1,713,220) Revenues reported as unavailable revenue in the governmental'funds and recognized in the statement of activities.These are included in the i ntergovern mental revenues in the governmentalftind activity. 2119681923 Deferred inflows related to pension items (I 1,0�481494) Internal service funds are used by management to charge the costs of certain activities,such as equipment management and self-insurance,to individual funds. The assets and liabilities of the internal service ftinds must be added to the statement of net position. 41447,752 Net Position of Governmental Activities $ 1,025,387,169 see N9q@s6qJNnA"a'stqkqwnts 37 Page 245 of 421 CITY OF CHULA VISTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2019, capital Projects Special Revenue Funds Funds Housing Successor Development Impact General ...Sundry Grants Agency Funds Revenues: Taxes $ 154,495,385 $ I-icenses and permits 2i337,085 Intergovernmental 3,585,674 4i4O7,695 - Charges for services 6i 149,,075 11445�148�8 - 309�106 Use of money and property 5,735,304 107,209 834,567 2,0�40,,333 Fines and forfeitures I i464,302 - - Contributions 698,921 14,545,737 Developer participation 1,507,738 - - 15,780,,285 Miscellaneous 121149,i569 253,775 1�6585913 Total Revenues 188,123,053 20,759,904 2,493,480 18,,129,724 Expenditures: Current: General government 22,318,357 19,989 - Public sal"ety 93,9�43,419 7,570,331 - - Community development 4,754,9,69 3,896,305 5,223 6�64,124 Parks andrecreation '11�208,237 - - - Public works 19,091,005 - Library 3,9 10,273 37,881 - Cap�ital outlay 21,163,706, 1,684,465 3,5485410 Debt service: Principal retirement 5,744,050 - - Interest and fiscal charges 2,855,721 - - 36,779 Total Expenditures 184,989,737 13�2081971 5,223 4,249,313 Excess(Deficiency)of Revenues Over(Under)1..�Ixpcndiftircs 3,133,316 7,550,933 2,4885257 13,8805411 Other Financing Sources(Uses): Transt'ers in '1,0,9�56,957 Il 5,731 - 107,415 Transfers out (4,179,,049) (1,788,362) (4,639,183) Cap�ital leases 759,697 'Total Othei-Financing Sources (Uses) 7,537,605 (1,672,631) - (4�531,768) Net Change in Fund Balances '10,670,921 5,878,302 2,488,257 9,348,643 Fund Balances,Beginning,of'Year,as previously reported 108,203,5 16 411577,1631 10,3215276 46,0�68,629 Restatements - 50511949) - (394,643) Fund Balances',Beginning of Year,as restated 108,203,5 16 41107111682 10,3215276 45,673,986 Fund Balances,End of Year $ 118,8741437 $ 9,949,984 $ 121809,533 $ 551022,629 See 1�00-001114AOA&aftft*s 38 Page 246 of 421 CITY OF CHULA VISTA STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2019, Debt Service Funds Municipal Other Total Public Financing Financing Governmental Governmental Authority Authority Funds Funds Revenues: Taxes $ $ $ 3,328,911 $ 157,824,29�6 I-icenses and perrnits 30M80 2�367�165 Intergovernmental 18,416,148 26,409,517 Charges for services - - 17M215844 24,925�5 13 Use of money and pro�perty 167,081 679 3,327,017 12�212J90 Flnes and forfeitures - - 7535933 25218�235 Contributions - 15,244,658 Developer participation - 7 80�,194 18,0�68,217 Miscellaneous - 317,154 350�405048 175419�459 Total Revenues 16�7,081 317,833 46,698,17-5 276,689,250 Expenditures: Current: General goverriment 10,527 5,085, 150�985878 23,4525836 Public sat"ety - - 66,892 101,580,642 Community development 1,540,217 1 O�,860 583 8 Parks and recreation - I'I�208,237 Public works 1 O�58835477 29,9745482 Library - 3,948,154 Cap�ital outlay - - 22,8575094 49,2535675 Debt service: Principal retirement 3,490,001 1,330,000 1,1965732 11,7605783 Interest and fiscal charges 3,315,617 1,348,206 467,0,80 8,0�23,403 Total Expenditures 61816,145 21683,291 38,110,370 250,063,050 Excess(Deficiency)ofRevenues Over(Under)1..�Ixpcndiftires .....................(6,649,064,) (2,365,458) 8,5875805 26,6265200 Other Financing Sources(Uses): Transt'ers in 5,606,9�21 2,323,130 1,855,043 20,965,197 Transfers out - (6,0�19,327) (165625,92 1) Cap�ital leases - - - 759,697 'Total OtherFinancing Sources (Uses) 5,606,921 2,323,130 (4�,164,284) 510�98,973 Net Change in Fund Balances (1,042,143) (42,328) 4,423,521 3 L7 2 5,17 3 Fund Balances,Beginning,of'Year,as previously reported 61260,1550 43,1650 82�9565516 258,431,5768 Restatements - - - (900,592) Fund Balances,Beginning of Year,as restated 611260,1550 43,1650 82,9565516 257,531,5176 Fund Balances,End of Year $ 5,218,407 $ 1,322 $ 871380,037 $ 289,256,349 See 1�()�0-04FjqaA0A6AaftWjWs 39 Page 247 of 421 CITY OF'CHULA VISTA RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF'ACTIVITIES FORTHE FISCAL YEAR.ENDED JUNE 301 20.1.9 Net change in fund balances-total.governmental funds 3 1.�72511173 Amounts reported for governmental.activities in.the statement of activities are different because: Governmental funds reported capital outlay as expenditures.I lo,wever,in the Government-Wide Statement of Activities and Changes in.Net Position,the cost of those assets was allocated over their estimated useful.lives as depreciation.expense. This was the amount of capital assets,recorded in the current period,including donated assets of$3,,846,573,and is net of 52'�219,416 loss on di sposal.of assets of($18 2,409). Depreciation expense on capital assets was reported in the Government-Wide Statement of Activities and Changes in Net Position',but they did not require the use of current financial resources.Therefore,depreciation expense was not reported as expenditures in the Governmental Funds,.This,amount did not include the depreciation expense for Internal Service Funds in the amount of$243,078. (30,174,293) Repayment of long-term liabilities was an expenditures in governmental funds,but the repayment reduced,long-term liabilities in the Government-Wide Statement of Net Position. Principal payment of long-term debt 1]'�760,783 Amortization expenses were reported in the Government-Wide Statement of Activities and Changes in Net Position,but they did not require the use of current financial resources.Therefore,amortization expenses were not reported as expenditures in the Governmental Funds. Bond premium 1 1,486,613 Deferred charge on refunding (324,010) Certain long-term liabilities were reported in the Government-Wide Statement of Activities and,Changes in Net Position, but they did not require the use of current financial resources.Therefore,long-term liabilities were not reported as expenditures in governmental ftniols.These amounts represented the changes in long-term liabilities from prior year. Changes in compensated absences (630�,123) Changes in clairns payable (1,356,588) Capital leases entered into (759,697) Interest expense on long-term debt was reported in the Government-Wide Statement of Activities and Changes in Net Position,but it did not require the use of current financial resources.This amount represented the change in accrued interest from prior year, 119,923 Revenues reported as unavallbale revenue in the governmental funds and recognized in the statement of activities. These are included in the intergovernmental revenues in the governmental fund activity. 3,738,727 Internal service funds were used by management to charge the costs of certain activities to individual funds.The net revenue of internal service funds was reported with governmental activities. 1,1754,528 OPEB obligation expenses reported in the statetnent of activities do not require the use of current financial resources and,therefore,are not reported as expenditures in governmental funds. (744,752) Pension obligation expenses reported in the statement of activities do not require the use of current financial resources and,therefore,are not reported as expenditures in governmental funds. (10,337,535) Change in Net Position of Governmental Activities $ 58,478,165 See N9q@sqq_tjnA"aStqkqMVnts 40 Page 248 of 421 "Fw"*hROPRIET,ARY FUND FINANCIAL STATEMIENTS 2020-04-21 Agenda Packet 41 Page 249 of 421 CITY OF CHULA VISTA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 3,0�,2019 Business-Type Activities-Enterprise Funds Governmental Sewer Other Activities- Development Development, CV Elite Athlete Enterprise Internal Sewer Fund Impact Fees Services Fund Training Ctr Funds Totals Service Funds Assets: Current: Cash and Investrilents 116,157,253 4,148,169 1,588,324 221,908 122,115,653 7,270,982 Receivables: Accounts 7,657,439 - 303 - 7,657,742 3,084 Cash with fiscal agent - - - - - 324,125 Total Current Assets '123,814,692 4,148,168 1,588,627 221,908 129�,773,395 7,598,'191 Noncurrent.- Advances to other funds 18,607,952 - - - 18,607,952 - Capital assets-net of accumulated depreciation 125,178,041 110,602 84,155 196,691,591 25,351 322,089,740 364,921 Total Noncurrent Assets '143,785,,993 110,602 84,155 196�,691,591 25,351 340,6,97,692 364,921 Total Assets 267,600,685 4,258,770 1,672,782 196,691,591 247,259 470,471,087 7,963,'l 12 Deferred Outflows of Resources: Dcf'ci-red items related to pensions 1,546,172 - 2,565,150 - - 4,111,322 310,809 D66-red itcais related to()Pl',"B 25,668 - 30,689 56,357 4,463 Total Deferred Outflows of Resources 1,571,840 - 2,595,839 - - 41167,679 315,272 Liabilities; Current: Accounts payable 319,328 - 247,480 101,647 19,860 688,315 350,101 Accrued liabilities 136,416 - 180,258 - - 316,674 31,788 Retention payable 51,020 - - 2,108 53,128 - Uncarncd reventics 1,047,145 - - - - 1,0�47,145 - Due to other funds - - 46,944 107,768 154,712 471,764 Accrued conipcns,,itcd absences 188,416 - 253,3,61 - - 441,777 11,847 Total Current Liabilities 1,742,325 - 728,043 2099415 21196,8 2,701,751 865,500 Noncurrent. Advances from other funds - 18,607,952 - - - 18,607,952 - Accrued cornpcnsatcd absences 29,484 - 183,9�70 - - 213,454 28,40�4 Net pension liability 13,755,739 - 22,821,227 - - 36,576,966 2,765,149 Total OPEB liability 725,004 - 866,851 - - 1,591,855 126,086 Bonds,notes,and capital leases 17,245 - - - - 17,245 - Total Noncurrent Liabilities, 14,5�27,472 18,607,,952 23,872,048 - - 57,007,472 2,919,639 Total Liabilities 16,269,797 18,607,,95,2 24,600,091 209,415 21,96�8 59�,709�,223 3,78,5,139 Deferred Inflows of Resources: Deferred items related to pensions 721,284 1,196fi34 - - 1,917,918 144,991 Total Deferred Inflows of Resources 721,284 - 1,196,634 - - 1,9�17,918 144,991 Net Position: Investment in capital assets 125,160,796 110,602 84,155 196,691,591 25,351 322,072,495 364,921 Unrestricted 127,020,648 (14,459,784) (2 1�6 1 2,259�) (209,415) 199,940 90�,939,130 3,983,333 Total Net Position $ 252,181,444 $ (14,,349,18,2) $ (21,5�28,104) $ 196,,482,176 $ 225,291 $ 413,011,625 $ 4,348,254 Reconciliation of Net Position to the Statement of Net Position Net Position per Statenicrit of Net Position-Proprietary Funds $ 413,0 11,625 Prior years'accumulated adjustment to i-cflcct the consolidation of internal service funds activities related to the enterprise flunds (203,131) Current years'adiLiStments to reflect the consolidation ofinternal service activities related to enterprise I'Linds 103,633 Net Position per Statement of Net Position 412,912,127 See N�"2C0-#Y4LA2�ti,*WfAjfiPftCket 42 Page 250 of 421 CITY OF CHULA VISTA STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS FOR FISCAL YEAR ENDED JUNE 30,2019 Business-Type Activities-Enterprise Funds Governmental Sewer Other Activities- Development Development CV Elite Athlete Enterprise Internal Sewer Fund Impact Fees Services Fund Training Ctr Funds Totals Service Funds Operating Revenues: Sales and service charges 44,213,351 S 1,265,579 S 9,317,29�8 S S S 54,796,228 S - Interdepartmental charges - - - - 8,481,045 Other 197,879 - 39,587 14,747 252,213 368,18,9 Total Operating Revenues 44,411,230 1,265,579 9,356,885 14,747 55,048,441 8,849�,234 Operating Expenses: Administration and general 29,305,847 16,591 10,745,174 258,43,3 157,449 40�,483,494 6,88,1,773 Source ofsupply 1,075,744 - - - - 1,0,75,744 - Depreciation expense 6,53�7,83�7 3,041 10,361 337,146 3,348 6,891,733 243,078 Total Operating Expenses 36,919,428 '19,632 10,755,535 595,579 160�,797 48,450,971 7,124,851 Operating Income(I..,oss) 7,491,802 1,245,947 (1,398,650) (595,579) (146,050) 6,597,470, 1,724,383 Nonoperating Revenues(Expenses): hitcrgovernincrital, - - - 163,380 163,380 - Interest revenue 4,364,69�8 168,482 36,196 (3,355), 9,658 4,575,679 31,495 Interest cxpensc - (476,233) - - (476,233) - Gain(loss)on disposal ol'capital,assets 60,770 - - 60�,770 102,283 Total Nonoperating Revenues(Expenses) 41425,468 (307,751) 36,,196 (3,35,5)� 173,038 4,323,596 133,778 Incorne,(I..,oss)Befbrc'Transt�rs 11,917,270 938,196 (1,362,454), (598,934) 26,988 1 O�,921,066 1,858,161 "T'ransficrs in - - 461,222 189,586 - 650,808 - Transibrs out (3,039,809) - (1,923,648) (26,627) - (4,990�,084) - Changes in Net Position 8,877,461 938,19�6 (2,824,880) (435,975) 26,988 6,581,790 1,858,161 Net Position: Beginning of'Year 243,303,983 (15,287,378) (18,703,224) 196,918,151 198,303 406,429,835 2,490,0�93 End of Fiscal Year $ 25211811444 (1 4,3�49,,182) (21,528,104) 196,482,176 225,291 $ 413,011,625 4,3�48,254 Recon cilia tio,n of Changes in Net Position to the Statement of Activities: Changes in Net Position,per the Statement of'Revenues, Expenses and Changes in Fund Net Position-Proprietary Funds S 6,581,790 AdJustment to reflect the consolidation of current fiscal year internal service funds activities related to enterprise fitinds 103,633 Changes in Net Position of Business-Type Activities per Statement of Activities $ 6,685,423 See N�"2C0_#y4LA2�tiAWfAjfiPftCket 43 Page 251 of 421 CITY OF CHULA VISTA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FISCAL YEAR ENDED JUNE 30,,2019 Business-Type Activities-Enterprise Funds Governmental Sewer CV Elite Other Activities- Development Development Athlete Enterprise Internal Sewer Fund Impact Fees Services Fund Training Ctr Funds Totals Service Funds Cash Flows from Operating Activities- Cash received fironi custornersand users 43,272,169 $ 1,265,579 9,369,844 $ 147,327 54,054,919 Cash received froni/(pald to)interfund service provided - - - 25,426 (128,859) (1 O�3,43 3) 9,371,262 Cash received frorn/(pald to)suppliers for goods and set-vices (1,015,669) - 183,063 73,403 15,587 (743,616) (124,912) Cash paid to employces for services (28,630,967) 0 6,59 1) (258,433,) (157,449) (37,073,541) (7,254,952). Net Cash Provided(Used)by Operating Activities 13,625,5,3,3 1,248,9�88 1,542,806 (159,604) (123,394) 16,134,329 1,99�1,398 Cash Flows from,Non-Capital Financing Activities: Cash transf�rs otit (3�,039�,809) (1,923,648) (26,627) - (4,990,084) - Cash transl:�rs in - 461,222 189,586 - 650,808 - Repayrnent received korn other funds 724,977 - - - 724,977 - Repayment made to other finids - (633,768) - (633,768) - Interest paid to other fbilds, (476,233) (3,,355) - (479,588) - Net Cash Provided(Used)by Non-Capital Financing Activities (2,314,8,32) (1,110,00 1 (1,462,426) 159,604 - (4,727,655) - Cash Flows from Capital and Related Financing Activities: AcClUiSitiOn and construction ol'capital assets (1,210,793) - (28,698) (1,293,822) - Proceeds firorn sales ofcapital assets 60,770 60,770 102,283 Net Cash Pro�vided(Used)by Cap�ital and Related Financing Activities (1,1 50�,023) - (54,331) - (28,698) (1,233,052) 1 O�2,283 Cash Flows from Investing Activities: Interest received 4,364,698 168,482 36,196 - 9,658 4,579,034 31,495 Net Cash Pro�vided by Investing Activities 4,364,698 1,68,482 36,196 - 9,658 4,579,034 31,495 Net Increase(Decrease)in Cash and Cash Equivalents 14,5�25,376 307,469 62,245 - (142,434) 14,752,656 2,125,176 Cash and Cash ECILliValents at Beginning ol'Year 10 1,63 1,8 77 3,840,6�99 1,526,079 - 364,342 1 O�7,362,997 5,469,931 Cash and Cash Equivalents at End of Year $ 116,157,253 $ 4,148,168 $ 1,5�88,324 $ - $ 221,908 $ 1221115,653 $ 7,59�5,1 O�7 Reconciliation of Operating Income to Net Cash Provided(Used)by Operating Activities: Operating incorne(lo,ss) $ 7,491,802 $ 1,245,947 $ (1,3�98,6�50) $ (595,579) $ (146,050) $ 6,597,470 $ 1,724,383 Adjustments to reconcile operating income(loss) net cash provided(used)by operating activities: DepreciatiOn 6,537,837 3,041 10,361 337,146 3,348 6,891,733 243,078 (Increase)decrease in accounts receivable (1,965,115) - 12,959 - 132,580 (1,819,576) 7,958 (Increase)decrease in prepaid costs 35�3 10 - 39,726 - - 75,036 471,764 (Increase,)decrease in def'eri-cd outflows frorn pensions 1,1 O�8,456 - 1,524,171 - 2,632,627 3 0 1,03 7 (Increase,)decrease in def'eri-cd outflows frorn OPEB (18�375) - (21,970) - - (40,345) (3,195) Increase(decrease)in accounts payable 12,179 - 143,3,37 73,403 13,480 242,399 (82,60�6) Increase(decrease)in due to other funds - - - 25,426 (128,859) 1 O�3,433) Increase(decrease' in retentions payable 12�586 - - - - 2,10,7 14,693 Increase(decrease)in accrued liabilities 14,373 - 15,520 - 29,893 100 Increase(decrease)in unearned revenue 826,054 - - - - 826,054 - Increase(decrease)in compensated absences (8,410) - 33,998 - - 25,588 (13,480) Increase(decrease)in net pension liability (850,272) - 453,090 - - (397,182) (729,053) Increase(decrease)in total OPEB liability 56,347 - 67,371 - - 123,718 9,798 Increase(decrease)in defierred inflows ftorn pensions 372�761 - 662,893 - - 1,035,654 61,614 Total Adjustments 6,133,731 3,041 2,941,456 435,975 22,656 9,536,859 267,015 Net Cash Provided(Used)by Operating Activities $ 13,625,533 $ 1,248,9�88 $ 1,5,42,8,06 $ (159,604) $ (123,394) $ 16,134,329 $ 1,991,398 See N�"2C0_#y4LA2�ti,*WfAjfiPftCket 44 Page 252 of 421 CITY OF CHULA VISTA STATEMENT OF FIDUCIARY NET POSITION FIDUCIARY FUNDS JUNE 30,2019 Private-Purpose Trust Fund Agency Successor Agency of the Former Chula Funds Vista RDA Assets: Poo�led cash.and investments $ 81876�798 $ 41466�432 Receivables,: Accounts - 31,572 Notes and loans 128i544 Allowance,for uncollectible loans - (128,544) Accrued interest 1�431 Restricted assets'. Cash and investments 12,15539334 - Cash and investments with fiscal agents 32,19089488 929 Capital assets: Capita,I assets,notbeing depreciated, - 51,0000 Cap�ital assets,net of accumulated,depreciation - 941,305 Total Assets 54,340,051 $ 11�O 121318 Deferred Outflows of Resources: Deferred charge on refunding $ 1�419�226 Total Deferred Outflows of Resources $ 1,4191226 Liabilities and Net Position: Liabilities: Accounts payable 13308 $ 40 Accrued,liabilities - 1,329 Accrued,interest - 272�447 Unearned,revenues 1 5,59�3 - Deposits payable 12�43407 - Due to other governments - 551141 Due to the City orChula,Vista - I 0�IK831 Due to external parties/other agencies 41�755�963 - Long-term liabilities: Due in one year - 1,725,000 Due in more than one year - 2815241629 Total Liabilities 5413405051 40,6881417 Net Position: Held in trust for other purposes (28,256,873) Total NetPosition $ (281256,873) See 45 Page 253 of 421 CITY OF CHULA VISTA STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30�2019 Private-Purpose Trust Fund Successor Agency of the Former Chula Vista RDA Additions: Taxes 31063J.4I Interest aD.d change in fair value of invest.tilents 147�747 Total Additions 3,210,888 Deductions: Adnilrustrative expenses 280,�598, Contractual services 23 IM34 Interest expense 969,735 Depreciation expense 471,�724 Loss on disposal of land 509,763 Total Deductions 21038,854 Changes in Net Position 11172,034 Net Position-Beginning of the Year (29,428,907) Net Position-End of the Year S (28,2569873) See 46 Page 254 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30��2019 NOTE DESCRIPTION PAGE 1, 'Reporting Entity and Summary of Significant Accounting Policies 49 2 Cash and Investments 6�2 3 Receivables 6�7 4 Interfund Balances and Transactions 73, 5 Capital,Assets 76 6 Long-Term Debt 78 7 Unearned/Deferred Revenue 94 8 Compensated Absences 95 9 Other Required Fund Disclosures 96 10 Self-Insurance Accrued Liabilities 96 11 Pension Plans 97 12 Post Retirement Health Benefits 105 13 Commitments and Contingencies 109 14 Classification of Fund Balances 110 15 Prior Period Adjustments III 16 Subsequent Events III 2020-04-21 Agenda Packet, 47 Page 255 of 421 2020-04-21 Agenda Packet, 48 Page 256 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS YEAR ENDED JUNE 30,2019 Note I —Reporting Entity and Summary of Significant Accounting Policies The basic financial statements of the City of Chula Vista, California (the "City") have been. prepared in. conformity with generally accepted accounting principles of the United States of America("U.S. GAAP"') as applied to governmental agencies. I he Governmental Accounting Standards Board ("GASB") is the accepted standard setting body for e stab I ishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Reporting Entity The City, incorporated in 1911,was,recognized as a city in the State of California by election in 1949�. The City operates under an. elected Council,. and appointed City Manager form, of government and provides the following services as authorized by its charter: public safety, community services, engineering services, planning services, public works, general administrative services and capital improvements. The financial reporting entity cons,ists of the primary government, the City, and its component units. Component units are legally separate entities for which the elected officials of the primary government are financially accountable. In. addition., cornponent units can. be other organizations for which. the primary government is accountable and their exclusion would cause the reporting entity's financial statements to be misleading or incomplete. Blended component units, although legally separate entities, are, in substance part of the primary government's operation and so data from these units are combined with data of the primary government. Discretely presented component units, on the other hand, are reported in a separate column in the combined financial statements to emphasize that they are legally separate from the primary government. The City Council acts as the governing body and is able to impose its will on the following organizations, establishing financial, accountability and operational,. responsibility. As a result, these organizations are considered component units of the City and are included within. the financial statements of the City using the blended method. All component units have a June 30 year-end. The City has no discretely presented component units. The Chula Viwa Industrial Developlvent A uth,ori,ty,,,,(th,e "DevelQpment Authority_:� The Development Authority was -formed in February 1982 -for the purpose of promoting and developing commercial, industrial and manufacturing enterprises and encouraging emp,loyment. The governing body of the Development Authority is comprised of the members of the City Council. The Developm.ent Authority"s financial data and transactions are included within the capital projects, fund type. The City does not produce separate -financial statements -for the Development Authority. The Chula Vista Public Financing Authority Cthe "Publie Financing A uthoritV The Public Financing Authority was established by resolution, pursuant to the City Charter and Constitution of the State of Califomia, as a public bo�dy, to serve the public purposes of the City. The resolution was adopted on April 4, 1995. The Public Financing Authority was established by a joint exercise of powers agreement between the City and the Redevelopment Agency. The 2020-04-21 Agenda Packet, 49 Page 257 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I —Reporting Entity and Summary of Significant Accounting Policies (Continued) A.. ReportingEntity(Continued) The Chula Vista Public Financing Authori�y (the, "Public Financing Authority") (�Lontinuedj governing body of the Public Financing Authority is comprised of the consenting members of the City Council. The Public Financing Authority is authorized to borrow money for the purpose of financing the acquisition. of bonds, notes and other obligations of, or for the purpose of inakirtg loans,to the City and/or to refinance outstanding obligations of the City. The Chula, Vi,51a-Municipal inancing Authority (the 'Wunic�pal Financing A uthorit" The Municipal Financing Authority was established by resolution,pursuant to the City Charter and Constitution of the State of California, as a public body, to serve the public purposes of the City. The resolution.was adopted on,June H.,201.3. The Mun,.i,ci,pal,..Fi.n,.an.cin.g.A.uth,ori,ty was established by a joint exercise of powers agreement between the City and the Housing Authority. The governing body of the Municipal Financing Authority is comprised of the consenting members of the City Council. The Municipal Financing Authority is authorized to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations of, or for the purpose of making loans,to the City and/or to refinance outstanding obligations of the City. .The Chula Vista.Housing.Authoritv (the ".,Aff..fousing,Authority,') The Housing Authority was created by the City of Chula Vista City Council ("City Council") in March. 1993 to centrally coordinate and administer the City's programs for promoting balanced housing for families of all income levels. It was established pursuant to the State of Califbmia Health and Safety Code, Section 34200. It is empowered to develop, finance and own low income housing within the territorial limits of the City of Chula Vista. It uses a variety of local, state, and federal. funding sources to administer and, finance these prograrns. It is al.so the financing vehicle for the issuance of bonds for housing programs and services. The Housing Authority's financial data and transactions are included within the special revenue fund type. Separate financial statements are available at the City. B. Basis of'Accounting and.Heasurement.Focus The accounts of the City are organized on the basis of-funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as, appropri.ate. .Fun.d accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained in accordance with legal and managerial requirements. 2020-04-21 Agenda Packet, 50 Page 258 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I —Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis qfAccounting and Measurement Focus (Continued) Government- WideFinancial Statements The City's Government-Wide Financial Statements include a Statement of Net Position and a Statement of Activities. These statements, present summaries of governmental and business-type activities for the City accompanied by a total column. Fiduciary activities of the City arenot included in these statements. These financial,. statements are presented on, an. "economic resources" measurement focus and the accrual basis of accounting.Accordingly,all the City's assets and deferred out-flows as well as liabilities and deferred inflows, with the difference reported as net position are presented in the accompanying Statement of Net Position.. Also presented in. this statement are capital,. assets including infrastructure assets as well as long-term liabilities. Statement of Activities presents changes in Net-position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Certain types of transactions are reported as program revenues for the City in three categories: Charges for services Operating grants and contributions Capital grants and contributions Governmental Fund Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues,, Expenditures and Changes in Fund Balances for all major governmental funds and aggregate non.-major governmental -funds. An. accompanying schedule is, presented to reconcile and explain. the differences in total fund balance as presented in these statements to the Net Position presented in the Government-Wide Financial.Statements. The City has presented all major funds that met the applicable criteria. All governmental funds are accounted for on a spending or "current financial resources"' measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues,,Expenditures and Changes in Fund Balances presents increases (revenues and other financing sources) and decreases (expenditures and, other financing uses) to fund balances. Under the modified accrual. basis of accounting, revenues are recognized in the accounting period in which. they become both. measurable and available to finance expenditures of the current period. 2020-04-21 Agenda Packet, 51 Page 259 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I —Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis qfAccounting and Measurement Focus (Continued) Governmental FundFinancial Statements (Continjued� Revenues become available when received in cash, except for revenue which is subject to accrual and are recognized when due by the City. Generally 60 days after year-end for primary revenue sources (i.e. property tax, sales, tax, intergovernmental revenues and other taxes). Revenue recognition for grants is up to one year. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Unavailable revenues arise when potential revenues do not meet both the"measurable"and"available" criteria for recognition in the current period. Unearned revenues arise when the government receives cash,before it has a legal,.claim,to them.,as when.grant monies are received prior to incurring qualifying expenditures. In subsequent periods, when both revenue recognition. criteria are met or when the government has a legal claim to the resources, unavailable and unearned revenue is removed from the Balance Sheet and recognized as revenue. The Reconciliation of the Fund Financial Statements to the Government-Wide Financial Statements is provided to explain the differences created by the integrated approach of GAS13 Statement No. 34. The City reports the following major Governmental Funds: General Fund—This is the primary operating fund of the City. It is used to account for all revenues and expenditures that are not required to be accounted for in.another fund. Sundry Grants Special Revenue Fund—This fund consists of miscellaneous, grants/revenues such as: Supplemental law enforcement services, CBA.G,,California Library Services Act,asset seizure, local law enforcement block grants, California Recreation grants, Public Safety grants, ARRA grants,waste management and recycling,energy conservation,emergency shelter program, HOME program., CDBG program.income project, and Community Development Block grants. Housing Successor Agency Special Revenue Fund — This fund was established pursuant to Health and Safety Code Section 34 1 76(b)�(2)and is used to fund low and moderate income housing and related expenditures through the collection of property taxes. The Low and Moderate Income Housing Successor Fund was created due to the dissolution of the Chula Vista RDA. In accordance with Health and Safety Code Section 3�4176(b)(2), on February 1, 20�13, all rights, powers, assets, liabilities, duties and,obligations of theLow and.Moderate Income HousingFund were transferred, to,the Low and Moderate Income-Housing Successor Agency special revenue fund. Development.Impaet Capita 1.,Prqjects Fund—This fund,was established as a depository of various development impact fees. The fees are levied against all new development in the City in order to pay for the construction or improvement of public facilities as a result of City growth. 2020-04-21 Agenda Packet, 52 Page 260 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I —Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis qfAccounting and Measurement Focus (Continued) Governmental Fund.Financial Statements (Continjued� Public Financing A'.uthority� Debt Service Fund— This fund is used to account for financing the acquisition of bonds, notes and other obligations of, or for the purpose of making loans to the City and/or to refinance outstanding obligations of the City. Municipal Financing Authority Debt Service Fund—This fund is used to account for the financing or refinancing activities for the acquisition, construction, and improvernent of public capital. improvements. I T"I- Proprietary.Funa.lo inancial Statements Proprietary Fund Financial Statements include a Statement of Net Pos,ition, a Statement of Revenues, Expenses and Changes in Fund Net Pos,ition,and a Statement of Cash Flows for each major Proprietary Fund and aggregate non.-major proprietary funds. A separate column rep�resenting internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government-Wide, 'Financial, Statements. The City's internal service funds include three individual, funds which provide services directly to other City funds. These areas of service include Fleet and Vehicle Maintenance,, Information Technology Replacement and Workers Compensation. Proprietary funds are accounted for using the "e�cono�mic resources,"measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position. The Statement of Revenues, Expenses and Changes in Fund Net Posifton presents increases (revenues) and decreases (expenses) in. total. Net Position.. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds,receivables have been.recorded as revenue and provisions have been made foruncollectIble amounts. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations ofthe -fund.. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as no,n-operating expenses. 2020-04-21 Agenda Packet, 53 Page 261 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I —Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) I T- Proprietary Fund T 7 inancial Statements, ntinued� The City reports the followirig major proprietary funds: Sewer Enterprise Fund—This fund consists of several sub-funds that are used to account for sewer activities: The Sewer Income Fund is a depository for all monies collected to cover the cost of connecting properties to the City's public sewer system. All monies received may be used only for the acquisition, construction.,reconstruction.,maintenance and operation of sanitation.or sewerage facilities. The Trunk Sewer Capital Reserve Fund is used to account for sewerage facility participation fee received frorn owner or person making application for a permit to develop or modify use of any residential,commercial,,industrial or other property,which increases the volume of-flow into the City sewer system. All monies received shall be used for the enlargement of sewer facilities of the City so as to enhance efficiency of utilization and/or adequacy of capacity and -for planning and/or evaluating any -future proposals, -for area wide sewage treatment and/or water reclamation systems or facilities. The Sewer Service Revenue .Fund is a depository for all monies collected from the monthly sewer service charge. Monies, in this fund may be 'used for construction, maintenance, or operation of sewer. The Scwer.Facilit Replacement Fund is a depository for a portion of the revenue derived from y the monthly, sewer service charge. Monies in this fund shall be used solely, for the purpose of refurbishment and/or rep�lacement of sewerage facilities including related evaluation, engineering and utility modification costs. Sewer Development Impact Fees Fund—This -fund is a depository -for sewer development impact fees (DIFs). Development Services Fund—This, fund is a depository -for a portion of developer -fees and other development related activities. Chula Vista .Elite.A thlete Training Center (CVEA TC) Fund—This fund is used to account for the CVEATC's activities in partnership with the CVEATC operator Elite Athlete Services (EAS). Fiduc�iaa Fund Financial Statements Fiduciary fund financial statements include a Statement of Net Position and a Statement of Changes in Fiduciary Net Position. The City's fiduciary funds represent agency funds and private purpose trust funds. 2020-04-21 Agenda Packet, 54 Page 262 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I —Reporting Entity and Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) IT- Fiduciary Fund T I inancial Statements (Contin�ued� U Fiduciary -fund types are accounted for according to the nature of the f nd. The City's agency funds,are purely custodial in nature (assets equal liabilities) and thus do not involve measurement of results, of operations and therefore do not report a net position.. These funds are used to account for money and property held by the City as trustee or custodian. They are also used to account f0r various assessment districts for which the City acts as an agent for debt service activities. The City"s private purpose trust fund is a fiduciary fund type used by the City to report assets, liabilities and activities of the Successor -Agency to the Chula Vista Redevelopment Agency'. Its results of operations are presented on the Statement of Changes of Fiduciary Net Position. It follows the economic resources basis of accounting similar to proprietary funds. The Successor Agency was created by the City of Chula Vista City Council (City Council) in August 2012. It was estab�lished pursuant to Assembly Bill x] 26. Its purpose is to expeditiously wind, down. the affairs of the dissolved RDA. The governing body of the Successor Agency is comprised of the members of the Oversight Board selected by the County of San Diego, City of Chula Vista, school and special districts. The Successor Agency has, been included in the accompanying basic financial statements as a private purpose trust fund. C Encumbrances Formal budgetary integration is emp�loyed as, a management control device. Encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the app�licable appropriation, is, employed as, an extension of formal. budgetary integration,. Encumbrances outstanding at year-end, do not constitute U.S,. GAAP basis expenditures or liabilities because the commitments,will be honored during the subsequent year. Therefore, the City has,assigned a portion of its fund balance for future encumbrances. D�. Cash, Cash Equivalents and Investments The City pools its available cash. for investment purposes,. The City considers Pooled cash and investment amounts'.with original maturities of three months or less, to be cash equivalents. Highly liquid,market investments with, maturities of one year or less at time of purchase are stated, at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The City reported its investments at f ..air value and, the unrealized gain. on, investments amounted, to $3,632,,860 for the fiscal. year ended, i.une 30, 2019�. The statement of cash flows requires presentation of"cash and cash equivalents". For the purposes of the statement of cash, -flows., the City, considers all. proprietary -.-fund, pooled, cash. and investments as 44 cash.and cash equivalents", as, such funds are available to the various funds as needed. 2020-04-21 Agenda Packet, 55 Page 263 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I —Reporting Entity and Summary of Significant Accounting Policies (Continued) D. Cash, Cash Equivalents,and Investments (Continued) Certain.disclosure requirements,if applicable,for Deposits and Investment Risks in the following areas: InterestRate Risk. Credit Risk • Overall • Custodial.Credif.Risk • Concentration of Credit Risk Foreign Currency Risk In addition,, other disclosures are specified. including u.se of certain methods to present deposits and investments, highly sensitive investments, credit quality at year-end and other disclosures. E Inventories and Prepaid items inventories are valued on. an average-cost basis which. are adjusted to annual. physical,. counts or estimates under the consumption. method ofaccounting and. are recorded in. the internal service -fund. Prepaid items are items the City has paid in advance and will receive future benefit from. They are recorded under the consumption rnethod in. the General. Fund, Sun-dry Grants Special. .R,evenue Fund, Public Financing Authority, Sewer Fund and Development Service Fund. F. Restricted Assets Fiscal agents, acting on behalf of the City hold investment funds arising from the proceeds of long-term. debt issuances. The funds may be used for specific capital. outlays or for the payment of certain bonds, certificate of participation or tax allocation bonds and have been invested only as permitted by specific State statutes or applicable City ordinance, resolution or bond indenture. In addition.,the City restricts cash.deposits, fro�in developers that are refundable. G. lnte�fund Transactions Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" or "advances to/from other funds" (i.e., the current portion of interfund loans). Any residual. balances outstanding between the governmental activities and business-type activities are reported in the Governmental-Wide Financial Statements as"internal balances."' H. Capital Assets Capital. assets are valued at historical cost or estimated historical cost if actual. historical cost was not available. Donated capital assets are valued at their acquisition.value on the date donated. City policy has set the capitalizatio�n threshold for reporting cap�ital assets at $10�,000 for equipment and, $50,000 for infrastructure. Depreciation. is recorded on. a straight-line basis over estimated useful lives of the assets as follows: 2020-04-21 Agenda Packet, 56 Page 264 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I —Reporting Entity and Summary of Significant Accounting Policies (Continued) -H. CupitalAssets(Continued) Buildings 50 years Improvem.ents other than.buildings 50 years Machinery and equipment 5�-15 years Infrastructure 3�0-75 years The City defines infrastructure as the basic physical assets that allow the City to function.. The assets, include: Street system Sewer system Site amenities such as parking and landscaped areas used by the City in the conduct of its business Each major infrastructure system can be divided into subsystems. For examp�le, the street system can be subdivided into pavement, curbs and gutters, sidewalks,medians, streetlights,landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems. interest accrued during capital assets construction., if any, is capitalized for the business-type funds as part of the asset cost. For all infrastructure systems, the City elected to use the Basic Approach for infrastructure reporting. L Compensated Absences Government-Wide.Finaneial Statements For governmental and business-type activities, compensated absences are recorded as expenses and liabilities as incurred. Fund Financial Statements In governmental funds, compensated absences are recorded as expenditures in the years paid, as it is the City's policy to liquidate any unpaid compensated absences at June 30 from future resources,rather than currently available financial resources. The General Fund is typically used to liquidate compensated absences. In proprietary funds, compensated absences are exp�ensed to the various funds in. the period they are earned, and such fund's, share of the unpaid liability is recorded as a long-term. liability of the fund. 2020-04-21 Agenda Packet, 57 Page 265 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I —Reporting Entity and Summary of Significant Accounting Policies (Continued) J. Penst'ons For purposes of measuring the net pension liability and deferred outflows/inflows of resources,related to pensions, and pension experise, information about the fiduciary net position. of the City's California Public Ernployees' Retirement System. (CalPERS) plan (Plan) and additions to/deductions from the Plan's fiduciary net position have been determined on the same basis as they are reported by Cal.'PERS. For this p�urp�ose, benefit payments (including refunds of employee contributions) are recognized when due and payab�le in accordance with.the benefit terms. Investments,are reported at fair value. .K. Other.Post-Employnient.Benefitv For purposes of measuring the total OPEB liability,deferred outflows of resources and deferred inflows 13 and OPEB expense have been. determined by an, independent actuary. of resources, related to OPE � For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Generally accepted accounting principles require that the reported results must pertain to liability information within certain defined timeframes. For this report, the following timeframes,are used: Valuation.Date June 30., 2018 Measurement Date June 30�, 2019 Measurement Period July 1, 2018 to June 30, 2019 L. Long-Term Debt Go�v,ernme,nt-Wide Financial Statements Long-term debt and other financial obligations are reported as,liabilities in the appropriate funds. Bond premiums and discounts, as, well as issuance costs relating to bond insurance, are deferred and amortized over the life of the bonds using the effective interest method.Bonds payable are reported net of the applicable premium.or discount. .,Fund.Financial Statements The fund financial statements do not present long-term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position. M. D�eferred OutflowslInflows of Resources In addition to assets, the financial statements will sometimes report a separate section for deferred outflows of resources. This, separate financial. statement element, deferred outflows of resources, represents a consumption of net position that app�lies to a future period(s)and will not be recognized as an outflow of resources (expense/ expenditure) until then. The City has three items that qualify for reporting in this category, which are reported. in the government-wide statement of net position. One item is the deferred charge on refunding reported on the statement of net position. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition price. This amount is deferred and ai-nortized over the shorter of the life of the refunded or refunding 2020-04-21 Agenda Packet, 58 Page 266 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I —Reporting Entity and Summary of Significant Accounting Policies (Continued) -M. -D�qPrred Owflows/It!flows qf-Resources (Co�ntinued)� debt. The second item is the deferred outflows related to pensions,which represents the City's pension contributions made subsequent to the measurement date, change of assum...ptions, difference between. expected and actual experience, and the 'net different between projected and actual earnings on plan, investments. The third item is related to OPEB,, which represents the change of assumptions and difference between expected and actual. experience. In addition to liabilities', the financial statements will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an.acquisition.of net position.that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has two types of this item, one of which arises only under a modified accrual bas,is. Accordingly,the first item,-unavailable revenue, is reported only in the govemmmental funds, balance sheet. The governmental. funds report unavailable revenues from two sources: taxes and grant receivables. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. The second item is deferred inflows related to pensions and OPEB reported in the statement of net p�osition. These inflows are the results of changes in assumptions and differences between expected and actual experiences,and the net difference between projected and actual earnings on plan investments,which are deferred and amortized over the expected average remaining service life time. N. Property Taxes The County of San Diego, California(County)bills and collects property taxes and remits them.to the City according to a payment schedule established by the County. The County's tax calendar is from July I to June 30. Property taxes attach as a lien on property on January 1. Taxes are levied on July 1, based on the assessed values as of the lien date, and are payable in two installments: November 1. and February I of each year. Property taxes become delinquent on. December 10, and Apri 1 '10, for the first and second installments, respectively. The County is permitted by State law to levy taxes at I%of full market value(at time of purchase)and can increase the property tax rate no more than 2%per year or the current CPI, whichever is less. The City receives a share of this basic tax levy proportionate to what it received during the years 1980-,198 1. Property tax revenue is recognized in the fiscal year for which the taxes have been levied,provided the taxes are received within 90 days after the end of the fiscal year. Property taxes received after this date are not considered available as,a resource that can be used to finance the current year operations of the City and,, therefore, are not recorded,as revenue Until.collected. No allowance for doubtful accounts was considered,necessary. 0. Public Facilities Financing Interest costs incurred,from the date of borrowing to the completion of the improvement project(s) are cap�italized, net of interest earnings, on all proprietary fund assets acquired with tax-exempt debt. 2020-04-21 Agenda Packet, 59 Page 267 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I —Reporting Entity and Summary of Significant Accounting Policies (Continued) A -Net-Position In governmental-wide and proprietary fund financial statements, Net Position are categorized as follows: Ne�t lnw�slttnent in..........Cap,ital Assets—This component of net position consists of capital assets, net of accumulated depreciation., reduced by the outstanding balances of debt that are attributable to the acquisition, construction, or improvement of'those assets. Restricted—This component of net position consists of restricted assets reduced by liabilities and deferred in-flows of resources related to those assets. Unrestricted— This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component ofnet position. When expenses are incurred for purposes for which both restricted and unrestricted NetPosition are available, the City I s policy is to apply restricted Net Position -first, then unrestricted Net Position as they are needed. -Fund Balances In governmental fund financial statements, fund balances are categorized as follows.. I I Nonspenda Me—Items that cannot be spent because they are not in spendable form, such as prepaid items and inventories, items that are legally or contractually required to be maintained intact, such as principal of an endowment or revolving loan funds. Restricted — Restricted fund balances encompass the portion of net fund resources sub�ject to externally enforceable legal restrictions. This,includes externally imposed restrictions by creditors,, such as through debt covenants, grantors, contributors, laws or regulations of other governments, as well as restrictions imposed by law through constitutional,provisions or enabling legi,slat i on.. Coinmitted............... Committed fund balances encompass the portion of net fund resources, the use of which is constrained by limitations that the City irnposes upon itself at its highest level, of decision, making,normally the governing body,and that remain binding unless removed in the same manner. The City Council is considered the highest authority for the City that can, by adoption of an ordinance prior to the end of the fiscal year, commit fund balance. Once adopted, the limitation .imposed by the ordinance remains in.place until. a sim.ilar action is, taken (the adoption of another ordinance)to remove or revise the limitation. 2020-04-21 Agenda Packet, 60 Page 268 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I —Reporting Entity and Summary of Significant Accounting Policies (Continued) -Fund Balancev(Continued) As — Assigned fund balances encompass the portion of net fund resources reflecting the government's intended use of resources. -Assignment of resources can.be done by the highest level. .0 of decision making or by a committee or official designated f r that purpose. City Council has by resolution,authorized the Director of Finance to assign fund balances.City Council may also assign fund balance as it does when.appropriating fund balance to cover a gap between.estimated revenue and appropriations in the subsequent year's appropriated budget. Unlike commitments, assignments generally only exist temporarily. In other words, an additional action does not normally have to be taken for the removal of an assignment. Conversely, as discussed above, an additional action.is essential,.to either remove or revise a commitment. Unassigned— This amount is for any portion of the fund balances that do not fall into one of the above categories. This classification includes the residual fund balance for the General Fund. It also includes the negative residual balance for any other governmental fund that cannot be eliminated by offsetting ass,igned fund balance amounts. Sometimes the City will -fund outlay's fo�r a particular purpose from both restricted and unrestricted resources(the total of committed, assigned, and unassigned fund balance'). In order to calculate the amounts to report as, restricted, committed, assigned, and unassigned fund balance in the governmental fund financial. statements a flow assumption must be made about the order in.which the resources are considered to be applied. 'it is the City's policy to consider restricted-fund balance to have been depleted before us,ing any of the components, of unrestricted fund balance. Further, when the components of unrestricted fund balance can. be used for the sarne p�urp�ose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. .R. Spending and.,Reserve.Policy Government-Wide Financial Statements and the Propri,e,ty,!y Fund Financial Statements When an expense is incurred -for purposes -for which both. restricted and unrestricted Net Position, are available, the City's policy is to apply restricted Net Position first. Governmental Fund Financial Statements, When expenditures are incurred for purposes where only unrestricted fund balances are available, the City uses the unrestricted resources in the following order: committed, assigned, and unassigned. In November 2009, the City Council adopted a resolution amending the GeneralFund Reserve Policy to include the following distinct reserve categories: General Fund Operating Reserve, rninimu,in. 1.5%, Economic Contingency Reserve, minimum 5%, and Catastrophic Event Reserves, 3%. The General Fund Operating Reserve represents unrestricted resources available for appropriation by the City Council to address extraordinary needs of an emergency nature. The Economic Contingency Committed Balance represents monies set aside to mitigate service impacts during a significant downturn in the economy which impacts City revenues such as sales tax,property tax,business license tax,etc. The Catastrophic Event Reserves are monies set aside to fund unanticipated expense related to a major disaster in,.the City and are associated with.the City's Disaster Preparedness Program.. 2020-04-21 Agenda Packet, 61 Page 269 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I —Reporting Entity and Summary of Significant Accounting Policies (Continued) S. Use qf Evtimates The preparation ofbasic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts and disclo�sures. Actual results could di-ffer from these estirnates and assumption.s. Note 2—Cash. and Investments The following is a summary of pooled cash and investments, including cash and investments with fiscal agents at June 30�, 2019. Government-Wide Statement of Net Po�sition Fiduciary Funds Governmental Business-Type Statement of Net Activities Activities Total Position Total Cash and investments $ 22719191,777 $ 1221,1151653 $ 35010351430 $ 131343�230 36313781660 Restricted cash and investments: Held by City 8181490 - 8 18,490 12,553,334 13�371,824 Held by fiscal agents 47,449,,00�9 47,449,009 32,909,417 80,358,426 Total restricted cash and investments 48.�2671�499 - 48,.�267�499 45�462,751 93,,730,250 Total casb and investments $ 276,.�187i,276 $ 122i,1.1 5�653 $ 398�302�929 $ 5805198l $ 4571,108,910 Cash., cash.equivalents and investments consisted of the following at June 30, 2019: Petty cash $ 91413 Deposits with financial institution. M255.1782 Investments 35714851289 Investments held by fiscal agents 8013581,426 1 108 910 Total cash and investments $ 4571 1 A., Deposl"Itas, The carrying amount of the City's cash deposits were $19,255,782 at June 30, 2019. Bank balances before reconciling items, were $18,4831236 at that date, the total amount of which was insured or collateralized with securities held by the pledging financial institutions in the City's name as discussed below. The California Government Code requires California banks and savings and loan.associations to secure the City's, cash. deposits by pledging securities as collateral. This Code states that collateral pledged in. this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general,. creditor. Thus, collateral for cash. deposits is considered to be held, in. the City's name. The market value of pledged securities must equal at least I I O�% of the City's cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements, for cash deposits, which. are fully insured up to $250,000 by the Federal. Deposit Insurance Corporation.. The Cityl however, has not waived the collateralization requirements. 2020-04-21 Agenda Packet, 62 Page 270 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 2—Cash and Investments (Continued) A., Deposits (Continued) The City follows the practice of pooling cash and investments of all funds,except for funds required to be held by fiscal,.agents under the provisions of bond indentures—Interest income earned on.pooled cash. and investmentsis allocated on an accounting period basis to the various funds based on the p�erio�d-�end cash and investment balances. Interest income from cash and investments with fiscal agents is credited directly to the related -fund. B. Investments .As of June 30, 2019, the City had the following investments and maturities: Investment Maturities Investment Type Fair Value 1 year or fewer I-2 years 2-3 years 3-4,years 4,-5 years LAIF 5 1,222,576 $ 51,222,576 Time Deposits 31 0,00�O 310,000 San Diego County Investnient Fund 10,621,324 10,621,324 Federal Home Loan Bank, 11,159,389 - 3,033,119 5,006,180 3,120,09,0, Federal National Mortgage Association 9�,1 97,30�2 1,201,252 4,975,050 - 3,021,000 - Fedearl Home Loan Mortgage Corp 28,9,14,727 6,999,030 2,999,070 1,903,762 5,004,990 12,007,875 Federal Agriculture Mortage Corp 9,852,440 - - 3,351,240 3,000,360 3,500,840 Federal Farm Credit Bank 18,689,458 - 3,105,238 3,080,580 3,000,090 9,503,550 United States Treasury Notes 44,898,550 29,472,845 15,425,705 - - - Mediurn-Term Corporate Notes 15 1,596,390 33,826,460 32,455,369 3 7,5 7 2,0 8 1, 29,980,312 17,762,168 Money Market Funds 20,053,215 8,021,683 751,007 2,536�,039 2,817,494 5,926,992 Securit ies 969,918 969,918 - - - I feld by bond trUStee: Mutual Funds 80,358,426 80,358,426 - - Total 437,843,7 15 $ 223,0�03,5 14 62,744,558 $ 53,449,892 $ 49,944,336 48,70�1,425 Investments Authorized by the Califbrnia Government Code and the City's Investment Policy The table below identi-fies, the investment types that are authorized -for the City by the California Government Code (or the City's investment policy, where more restrictive). The tab,le also identifies certain provisions of the California Government Code(or the City's investment p�olicy,where more restrictive) that address interest rate risk. ., credit risk, and concentration of credit risk. This table does not address investments of debt proceeds held by bond trustee that are governed by the provisions of debt agreements of the City, rather than the general provisions of the California Government Code or the City's investment policy. 2020-04-21 Agenda Packet, 63 Page 271 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 2—Cash and Investments (Continued) -B. Investments (Continued) Maximum Maximum Maximum Percentage of Investment in Authorized Investment Ty pe Matu ri ty Portfolio* One Issuer Bankers'Acceptance 180 days 40% None Negotiable Certificates of Deposits 5 years 3 0% None Commercial Paper 270 days 25% 10% State and,Local Agency Bond Issues 5 years None None U.S. Treasury Obligations 51 years None None U.S,.Agency Securities 5 years None None Repurchase Agreement I year None None Reverse-PurchaseAgreements 9 2 day s, 20% None Medium-Term Corporate Notes 5 years 30% None T ime Certificates of Deposits 5 years None None Money Market Funds N/A 20% 10% San Diego County Treasurer's,PooledMoney Fund N/A None None Loca.l..A,gency.Invest.i,i,i.ent.FLind(LAIF) N/A. None $50.Million." ,Shares of Beneficial Interest issued by a JPA N/A None None Asset Backed Securities 5 years 20% 'None Supranationals 5 years 30% None Placement Service Deposits 5 years 30�% None Excluding amounts held by bond trustee that are not subject to California Government ** Maximurn is$50 million per account Investments Authorized by Debt Agreements Investments of debt proceeds held by bond trustee are governed by provisions of the debt agreement rather than.the general.provisions of the California Govern.m.ent Code or the City's investment policy. The table b�elo�w identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk. Maximum Maximum Maximum Percentage of Investment in Authorized Investment l'ype Maturity Portfolio One Issuer U.S,Treasury Obligations None None None Federal Horne Loan Mortgage Corporation None None None Farm Credit Banks None None None Federal Hon-ie Loan Banks None None None I"ederal National Mortgage Association None None None Student Loan Marketing Association None None None Financing Corporation None None None Resolution F-unding Corporation None None None Certificates of Deposits, I'ime Deposits and Bankers'Acceptance 3 0 days None None Commercial Paper 270 days None None MoneyMarket Funds None None None State Obligations None None None Municipal Obligations None None None Repurchase Agreements None None None Investi-nent Agreements None None None Local Agency Investment Fund(LAIF) 'None None None 2020-04-21 Agenda Packet, 64 Page 272 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 2—Cash and Investments (Continued) C. RI'S' ks Disclosure,,v Interest Rate Rl*s,k As a means oflimiting 'its exposure to -fair value losses arising from. rising interest rates, the City"s investment policy provides that -final maturities of securities cannot exceed five years. Specific maturities of investments depend on. li.quidify needs. -At June 30, 2019, the City's pooled cash and investments had the -following maturities: Percentage of Maturity Investment Less than one year 39.9% 1 -2 years 17.5% 2 - 3 years 15.0% 3 -4 years 14.0%, 4 - 5 years 13.6% The weighted average maturity of the portfolio was 2.1. years. Credit Risk Generally,credit risk is the risk that an issuer of aninvestment will not fulfill its,obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. To be eligible to receive City money, a bank, savings association, federal association., or federally insured industrial. loan,. company shal.l. have received an. overall. rating of not less than "'satisfactory" in its most recent evaluation by the appropriate federal financial supervisory, agency of its, record of meeting the credit needs of California's communities, including lo�w-and moderate income neighborhoods. The City's investments are rated by the nationally recognized statistical rating organizations as follows: S,tan dard& Inve s tme nt Type Fair Value Moody's Poor's, LAIF $ 51,2221576 Not Rated NotRa-ted TimeDeposits 3 1.01IM10 Not Rated NotRated San Diego County Investment Pool 10,16211324 Aaa AAA Federal Horne Loan Bank 1111591389 Aaa AA+ Federal National Mortgage Association %197�302 Aaa AA+ Federal.florne'Loan.Mortgage Corp. 2819.1.4j727 Aaa AA I Federal Agriculture Mortgage Corp. 918521440, Not Rated Not Rated Federal Farm Credit Bank 181689,9458 Aaa AA+ US Treasury Notes 44�898�550 Aaa AA+ Medium-Term.Corporate Notes 151,596.�390 Baal.. to.A.aa BBB+to AAA. Money Market Funds 1009411 lk4l Not Rated, Not Rated, Securities 9691918 Not Rated Not Rated $ 4371843�715 2020-04-21 Agenda Packet 65 Page 273 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 2—Cash and Investments (Continued) C. Risks-Disclosures(Continued)� Custodial Credit.Risk Custodial credit risk is the risk that, in the event of the -failure ofthe counter party, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.A1.1 securities,with.the exception.of L.A.IF and other pooled investments.,are held,by a third-party custodian (13N"Y Western Trust). BNY is a registered member of the Federal Reserve Bank. Conce.ntration of Credit.Risk The City's investment policy contains limitations on the amount that can be invested in any one issuer beyond that stipulated by the California Government Code. The City did not have any investments in any one issuer that represent 5%or more of the City's total.investment portfol.i.o at June 30, 2019. D. Investments in Local Agency�Investment The City is a participant in LAIF which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. -As of June 3�O�, 2019, the City had $51,222,576 invested in. L.A.I.F. LA.1F detennines fair value on, its investment port-fo�lio based on market quotations for those securities where market quotations are readily available and based on amortized cost or best estimate for those securities where market value is not readily available. The City valued its investments in LAIF as of June 30, 2019, by m.ulliplying its account balance with LAIF times a-fair value -factor determined by LAIF. This -fair value factor was determined by dividing all LAIF participants' total aggregate amo�rtized cost by total aggregate fair value. The credit quality rating of LAIF is unrated as of June 30, 2019. 2020-04-21 Agenda Packet, 66 Page 274 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 2—Cash and Investments (Continued) -E. Fair Value Hierarchy The City categorizes its fair value measurements within the fair value hierarchy establishedby generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level. I in.pu.ts are quoted prices in.active markets for identical.assets; Level.2 inputs are significant other observable inputs';Level 3 inputs are significant unobservable inputs. The City has thefollowing recurring fair value m. easureinents as of June 30,20.19: Level Investment Type Totals 1 2 Uncategorized, U.S.Agency Securities $ 771813�316 $ $ 7718 1 3,�316 $ - Local Agency Investment Fund(LAIF) 51�222�576 - 511222,576 U.S. Tre a s ury N ote s 44085550 441,8981550 - - Medium-Term.Corporate Notes 151,5961390 - 1.51.15961390 Asset Backed Securities 96%918 - 96%918 Time Deposits 3 1000 - 3 1,O�1000 - SanDiego County Investment Pool 1.O'�621�324 - 10 k2 1.13 24 Money Market Mutual Funds 20��053��215 - 20�0531,215 Held by Fiscal Agent. Cash&Money Market Mutual Funds 80,�358426 - - K358,426 r rotal Investments $ 4,37.184,3171.5 $ 441898.1550 $ 230.16891624 $ 1.62�2551541 U.S. Treasury Notes classified in Level I of the fair value hierarchy are valued using prices quoted in active rnarlwts -for those securities. 'U.S. Agency Securities, Corporate Notes, Asset Backed Securities and Time Deposits classified in Level 2 of the fair value hierarchy are valued using institutional bond quotes or specified fair market value factors. Note 3—Receivables A. Taxes,Receivable -At June 30�, 2019,the City,had the following taxes receivable: Governmental Actim'fies Sales Tax $ 1214861340 Property Tax. 6 1.1�404 Utilities, 'Users Tax 508�870 Transient Occupancy Tax 6521282 Franchise Fee Tax 2AI 2�921 Special Assessments 231969 Other Taxes IMI.5�941 Total $ 17.19111727 2020-04-21 Agenda Packet, 67 Page 275 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 3—Receivables, (Continued) B. Loans�Receivable .At June 30, 2019�the City had thefol.lowing loans receivable, including principal,.and accrued interest, of which', an.allowance for unco�llectible loans,was recorded in the amount of$3 819�5 IM 13: Governi-nental Activities Principal Interest Tota I South Bay Cornn'llinity Services(Trolley Trestle,Muncey Manor,CNV 1,CNII,NCV`11) $ 3,8,80,292 3,268,602 $ 7,148,894 Rancho Vista I-1ousing(Chelsea Investment Corporation) 1,50�0,000 668,220 2,168,220 St.Regis Park(Chelsea Investment Corp) 1,232,822 378 1,233,20�O Chula Vista Rehabilitation C1,111'Loans 1,135,626 146,236 1,281,862 Park Village Apts(Civic Center Barrio f lousing Corporation) 146,009 - 146,009 Mobile Horne Assistance Programs(Orange Tree) 12,584 - 12,584 Los Vecinos(Wakeland Housing and Development Corporation) 5,680,000 3,221,732 8,901,732 Main Plaza(Alpha III Development Inc.) 1,80�0,000 768,813 2,568,813 Seniors on Broadway(MAAC Project) 3,511,194 1,385,136 4,896,330 The Landings I&11(Chelsea Investment Corp) 8,485,471 11489,008 9,974,479, FirstTirne I-1orne Buyers Program 3,120,773 187,174 3,307,947 NSP Rental Housitig Program 1,00�0,000 235,230 1,235,230 Community Energy Retrofit Program 27,455 - 27,455 Lofts on Landis, 2,00�0,000 299�,486 2,299�,486 Duetta Apartments(F Street Family CIC,I,P) 2,068,000 - 2,068,00�O Volta Senior Apartments(G Street Seniors CIC,I,P) 932,000 - 932,000 .Anita Street(Wakeland I lousing And Development Corporation) 3,841,741 179,789 4,021,530 Deferred development ii-ripact fees 1,366,799 511,716 1,878,515 41,740,766 S 12,361,,520 54�10211286 South Bay Communi�yServices In 1998., the former Chula Vista RedevelopmentAgency RDA) and City of Chula Vista entered into several loan agreements with South Bay Community Services,, a California non-profit public benefit corporation. Prior years' loan was made to South Bay Community Services for the purpose of purchasing several properties,throughout the City of Chula Vista. In l'iscal year 1.998,a loan to fund the Trolley Terrace 18-unit project and the Cordova Village 40,-,unit project were made., These projects are to provide housing to very low-income families. The funds were made available to the City through a drawd,own from.the U.S. Department of.Rousing and Urban.Development. Included in.the current year balance is the $887.,995 loaned by the RDA. Deeds of trust and assignments of rent secure the notes. Principal.and interest are payable annually out of any and all.residual,.receipts derived from.the property and/or operation.of the property.Fund balance has been restricted in the Sundry Grants Special Revenue Fund and in the Low & Moderate Income Housing Successor Special Revenue Fund. Interest accrues annually on the unpaid balance with rates ranging from 3�% to 6%. At June 3�0, 2019, the outstanding balance of the loan was $7.,148,894,,which.included an.interest accrual of$31268,602. 2020-04-21 Agenda Packet, 68 Page 276 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 3—Receivables, (Contlinued)� B. Loans Receivable(Continued) Rancho 'Fista.,Ho using(Chelse'a.Investment Comoratio,g) In 20�O�0, the former RDA loaned $1 000,000 using low and moderate income housing funds and the City loaned $500,,000 using HOME funds to CIC Eastlake, .L.P. for the development and operation of Rancho Vista Housing Project,a multifamily housing project. The loanis secured by promissory notes and deed of trusts. The outstanding principal on the loan is, to be repaid over fifty-five (55) years and interest accrues at the simple interest rate of three(3%)percent per annum.on unpaid principal.Payment of principal.and interest,or porti.ons thereof, on.the loan is made on an.annual,.basis,out of a fund,equal to fifty(50%)percent of the net cash -flow of the project. At June 30, 2019�, the outstanding balance of the loan was $2,168,220 which included an interest accrual of$668,220. St. &gis Park(Chelsea Investment Corporation) In 2000, the former RDA entered into a loan agreement with Chelsea Investment Corporation for the acquisition and rehabilitation of the 119-unit multi-family housing project (fon-nerly known as Pear Tree Apartments')at 1025 Broadway.All units,are affordable to low-,income households. The loan is secured by a Deed of Trust and will accrue 6%interest for 52 years. Payment of principal and interest is made on. an. annual basi.s out of a fund equal to 9�0% of the residual receipts. At June 30�, 201.9, the outstanding balance of the loan was, $1,233,20�O which included an interest accrual of$378. Chula Vista Rehabilitation CHIP Loans The Chula Vista Rehabilitation Community Housing Improvement Program(CI IIP) is under the direct control of the Housing Authority acting as the Successor Housing Entity for those loans that were funded using low and moderate income housing funds. CHIP loans funded by CDBG,or HOME funds are also managed by the Housing Authority. CHIP, o�ffers deferred and low interest rate home improvement loans to qualified borrowers res,iding within a target area. -Loan repayments are re-deposited into the program.cash accounts and are redistributed as future loan.s.At June 30, 2019,the outstanding balance ofthe lo�an.was $1,281,862 which included an interest accrual of$146,236. 2020-04-21 Agenda Packet, 69 Page 277 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 3—Receivables, (Continued) B. Loans Receivable(Continued) ivi.c Center .Park Villyge Apartments E -Barrio Ho us in,g CoMoration) In 19,91, the former RDA entered into a loan agreement with the Civic Center Barrio Housing Corporation, a California non-profit public benefit corporation. The loan was made for the purchase of land and the development of a 28�-unit low-income housing p�roject. During 19�92,the loan was assigned to Park Village Apartments Ltd.,a California limited partnership in which Civic Center Barrio Housing Corporation is the managing general partner. The loan is secured by a deed of trust on the property and assignment of rents. Principal. and interest are payable monthly. In 2009, a second amendment to the loan.was entered into changing the interest -from 3% to 5%per annum on the unpaid principal balance of the note. At June 30�, 2019'.the outstanding balance of the loan was $146,0�09. Mobile Home Assistance Pr!2grams The former RDA entered into agreements with eligible residents of the Orange Tree Mobile home Park, whereby the RDA loaned $250�,030 as permanent financing assistance to residents for the Purpose of purchasing certain mobile home property. The loans are secured by deeds of trust on the property and mature in 2019 or when the property is sold. Contingent interest will be charged based on calculations specified in.the agreement. At June 30, 2019, the outstanding balance of the loan.was $1.2,584. Los Vecinos_,,(Wakeland Housing_,and Development Corporation) In 2008., the former RDA entered into a loan, agreement with. Wakeland. Housing and Development Corporation to, assist the borrower in constructing 41 affordable multi-family rental housing units for occupancy by extremely low, very low, and low income households. The loan amount of$5,680,000 was funded by the Low and Moderate Income Housing Fund. The loan bears an interest rate of 5%per annurn. Principal and interest payments wil.l.be made on an annual.basis out of a fund equal, to 50�%of the residual receipts for years 1-30 and 75%of the residual receipts for years 31-54�, until 55 years from the date the improvements are placed in. service, at which.time, all principal. and unpaid interest is due and payable. The improvements, were placed in. service on February 7, 20�O�8. At June 30, 2019�, the outstanding balance of the loan was, $8,901,732 which included an interest accrual of$3,221,732. Main Plaza (Alpha 111'Development Inc.) In 20�O�3, the former RDA and City entered into a loan agreement with Main Plaza, LP to assist in acquiring and improving certain real property for occupancy by very low, low, and moderate income households. The loan.bears an.interest rate of 3%per annu.m. The loan, is due and.payable on.the date that is 55 years from the date of the City's issuance of the Certificate of Completion,which is in 20�61. At June 30�,2019,the outstanding balance of the loan.was$2,568,81.3 which.included an.interest accrual. of$768,81.3. Seniors on Broadway QLAACP1 The City entered into a loan agreement with Seniors on Broadway, Limited Partnership to assist in acquiring and improving certain real property for occupancy by very low, low, and moderate income househo�lds. The loan bears an interest rate of 3%,per annum. The loan is due and payable on the date that is 55, years from, the date of the City's, issuance of the Certi-ficate of Completion.. At 2020-04-21 Agenda Packet, 70 Page 278 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 3—Receivables, (Contlinued) B. Loans Receivable(Continued) Seniors,on.Broadwav (gAA C P'rojeco (Continued)� June 30, 2019, the outstanding balance of the loan was $4,896,330 which included an interest accrual Of$1138511-36�. The Landinors I&11 elsea Investment,Co,rporation)� The City entered into a loan agreement with CIC Landings, L.P. to assist the borrower in constructing 91 affordable multifamily apartment units-for occupancy,by extremely low, very low and lower income households. The loan bears an interest rate of 3% per annum. The loan is due and payable each and every year commencing with the first anniversary of the issuance of the Certificate of Completi.on. by the City in an amount equal to City's proportionate share of the Residual Receipts -for the previous calendar year based upon a pro rata share of fifty percent(50%)of Residual Receipts with the California Department of Housing and CommunityDevelopment and its Multi-Family.Housing.Program. The City and RDA entered into loan agreements with Landings, 11,L.P. to assist with constructing 141 affordable multi-family rental housing units for occupancy by very low and low income households,. The loans are due and payable each, and every year commencing with. the first anniversary of the issuance of the Certificate of Completion by the City in an amount equal to 50%of the residual receipts. At June 30�,201.9,the outstanding balance of the loan was$9,974,479 which included an interest accrual Of$1.1489.08. First Time-Home-Buyers PLog ni The Chula Vista First-Time"Homebuyer Program.is,under the direct control.of the City and its"Housing Authority. The Programs is funded through U.S. Department of Housing and Urban Development HOME frivestment.partnership Act arid Neighborhood Stab i lizati on.Program.funds. Cal. Horne furids 'from the State of California Department of Housing and Community'Development are also used to-fund loans. The Program is currently administered by Springboard CDF1, (formerly known as Community Hous,ing Works Realty and Lending). The program offers low interest loans or equity share deferred gap financing loans to qualified borrowers. Loan repayments are re-depos,ited into the program and are redistributed as future loans. At June 30, 2019, the outstanding balance of the loan was $3,307,947 which included an interest accrual of$187,174. NSP Rental Housing Program The City,entered into a two separate loan agreements with San Diego Community Housing Corporation to acquire and rehabilitate rental, housing for very, low income households. The loaris, are secured by promissory notes and a deed of trusts. The outstanding principal and interest amount of the loan will be repaid over fifty-five (55)years and shall accrue at the simple interest rate of three(3%)percent per annurn. Principal and interest are payable annually out of a fund equal to 50% of residual receipts derived from the property and/or operation of the property. At June 30, 20 19, the outstanding balance of the loan was $1,235,230 which included an interest accrual of$235,230. 2020-04-21 Agenda Packet, 71 Page 279 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 3—Receivables, (Continued) B. Loans Receivable(Continued) Comm un ity.Retrofli t.Program The Chula Vista Community Energy Revolving Loan Fund(RLF)is under the direct co�ntro,l of the City of Chula Vista and was capitalized through the American Recovery & Reinvestment Act. The RLF offers fully amortized low-interest rate home energy improvement loans to qualified borrowers residing within Chula Vista. The loans are secured by a deed of trust on the properties.Principal and interest are payable monthly. Interest accrues annually on the unpaid principal balance of the notes. Loan repayments are re-deposited into the prograrn cash.accounts and are redistributed as future loans except -for loans-funded by General fund. At June 30,2019,the outstanding balance of the loans were$27,455. Lo,fts on.Landiky The City has adopted a Housing Element of the General Plan which sets forth the objective of providing balances and varied housing opportunities throughout the City to satisfy needs and desires of various age,income and ethnic groups of the community. The Housing Authority found that the City's financial,. participation in the development of the Landis Project will be a sound investment based upon the Developer' ability to,effectively service the City's housing needs and priorities expressed in the housing Element and Consolidated plan.. At June 30, 2019,the outstanding balance of the loan.was $2,299,486 whichincluded aninterest accrual of$299.,486. Duetta Apartments LF Street Fa,mJ1 T)I y CIC2 In 2016, the City entered into a loan agreement with F Street Family CIC, LP to assist to assist in the construction and permanent financing of affordable multifamily apartments with 86 deed restricted units for occupancy by extremely low, very low and lower income households. Loans are in the principal arnount of$80�O�,000 frorn the City's federal'HOME funds,$372,660 from.the City"s,Balanced Communities In-Lieu funds, and $895,340 fromLow and Moderate IncomeHousing Fund. The loan bears an. interest rate of 3%, simple interest per annum for a 55-year period. Payment of principal and interest is made on an annual basis out of a-fund equal to 50�%of the residual receipts. The outstanding principal and accrued interest on the loan is to be repaid by December 31,20�72. Fund balance has been restricted in the Sundry Grants Special Revenue Fund and in the Low & Moderate Income Housing Successor Special Revenue Fund. At June 30, 2019�., the outstanding balance of the loans were $210681000. Volty Senior Apartments LG 3treet,)eniors CIC, Lp) In 2016, the City entered into a loan agreement with G Street Senior CIC, LP to assist to assist in the construction. and permanent financing of affordable multifamily aparbnents, with 1.22 deed restricted units -for occupancy by extremely low, very low and lower income households. The loan amount of $932,000 was funded by the Low and Moderate Income Housing Fund. The loan bears an interest rate of 3% simple interest per annum.for a 55-year period. Payment of principal and interest is made on an annual.basis out of a fund equal to 50�%of the residual.receipts. The outstanding principal.and accrued interest on the loan is to be repaid by December 31,2072. Fund balance has been restricted in the Low & .Moderate Income Housing Successor Special Revenue Fund. At June 30, 2019�, the outstanding balance of the loans were $932,000. 2020-04-21 Agenda Packet, 72 Page 28,0 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 3—Receivables, (Continued) B. Loans Receivable(Continued) Anity Street('Wakeland.Housin,g and.Development CoMorat In 2018 and 2019,the City entered into an amended a loan agreement with Wakeland Housing to,assist in the acquisition of land and pre-development of an. affordable multifamily apartment development with, 'up to 100 possible deed restricted units, -for occupancy by extremely low, very low and lower income households. The loan amount of$3,841,741 was funded by the Low and Moderate Income Housing Fund. The loan bears an interest rate of 3% simple interest per annum for a 55-year period. Payment of principal.and interest is made on.an annual,.basis out of a fund equal to 50�%of the residual,. receipts. The outstanding principal and accrued interest on. the loan is to be repaid by December 3 1, 2076. Fund balance has been restricted in the Low & Moderate Income Housing Successor Special RevenueFund. At June 30,2019,the outstandin.g balance of the loans were$4,021,530 which.includes an interest accrual of$1791789. 1 1 DeLert-ea aevelopm,,en,t impqctfiees The D,IF Deferral Community Facilities District (CFD) was established to promote development in specified areas of the City known as "Western Chula Vista"by deferring specific development impact fees for projects that met the specific criteria outlined in.the CFD fori-nation. documents. The primary area included within the CFD plan was land west of the 1-5 -freeway, to spur on early development in preparation for the new Bayfront project, as well as land in the p�ortion of the City between Interstate 5 and Interstate 8,0�5, including thePalomar Gateway and Urban Core Specific Planning Areas and the Auto Park located East of the Interstate 805. As the Rate and Method of Apportionment defines, developers can defer their Development Impact Fees up to ten years or as otherwise defined in the CFD documents. Upon issuance of the Certificate of Occupancy (COO), the city calculates, interest on an annual. basis, and it is included as part of the long-term receivable. At June 30�, 2019, the outstanding balance of the loans were $1 878,51.5 which includes interest accrual $511,71.6. Note 4—Interfund Balances and Transactions Due to1Due,,,&om,,,,o,th,er, nds .0 At June 30, 2019�, interfund recelvables and payables were as f Ilows: Due To Other Funds CV Elite Public Municipal Affilete Internal Nonn-kaj o r Due from Other Financing Financing Development Tra in in g Service Governmental Funds Sundry 0-ants Authority Authority Services Center Funds Funds Total General Fund $ 4,341,593 $ 1,223 $ 159,411 $ 46,944 $ 107,768 $ 471,764 $ 4,759,929 $ 9,888,632 Total $ 4,341,593 $ 1,223 $ 159,411 $ 46,,944 $ 107,768 $ 471,764 $ 4,759,,9,29, 9,888,632 Current interfund balances arise in the normal course of operations to cover cash shortages and are expected to be repaid shortly after the end of the fiscal year. 2020-04-21 Agenda Packet, 73 Page 28,1 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 4—Interfund Balances and Transactions (Continued) Long-Term Advances At June 3 01 20 19,balances were as follows.- Advances From Other Funds Sewer Development Impact Development Advances to Other Funds Funds Impact Fees Fund Total Generaffund L528l,748 - $ L528,748 Sewer Enterprise Fun.d - 1816071952 1.8071952 Total $ 1�5281748 $ l8l,607�952 $ 20,136,7010, City Council,. authorizedloaris to the Public Facilities DIF in. the amount of$1.,528,969 to help fund the Civic Center expansion. The loan will be repaid as -funds become available, through the payment of DIF fees by developers. The balance was $1,528,748 at June 30, 20191. In accordance with Council Policy No. 2201-06, approved via Resolution 2015-028, the financing costs shall be calculated using the City's pooled investment earning rate on.a quarterly basis,. Per Resolution 20,15-035 of the City Council,interfund loans from the Transportation DevelopmentImpact Fee to the Fire Suppression System expansion. component of the Public Development Impact Fee were consolidated into one loan totaling$10,500,000. The balance for the loan was $8,372,874 at June 30,20,19. In accordance with Council Policy No.220-06,approved via Resolution 2015-028,the financing costs shall be calculated using the City's pooled investment earning rate on a quarterly basis. This advance was eliminated for financial, statement purposes,as it is an intrafund advance. City Council authorized a loan to Western PAD from Eastern PAD in the amount of$9,6l30,000 to acquire the 1.4.41 acre site located in. the lower Sweetwater Valley owned by the Redevelopment Agency and $3 101,000 to acquire the 1.89 acre site located at Auto Park Place, Chula Vista. Per Resolution 2015-035 of the City Council, these lolans, were consolidated. The loan will be repaid as funds, become available, either as a result of credit acquisitions by the Agency or the payment of PAD fees by developers in western Chula 'Vista; in conjunction with Council Policy No 200-06, approved via Resolution 2015-028, the financing costs shall be calculated using the City's pooled investment earning rate on a quarterly basis. The balance was $9,459l,635 at June 30, 2019l. TheAgency will ensure that PAD funds, are repaid,to fully fund the development of the park for which they were originally collected. This advance was eliminated for financial statement purposes,as it is an intrafund advance. The City Council,. authorized and set 'terms for loans from the Trunk Sewer fund to Salt Creek for $16,18581l381.to the Storm Drain fund for$7441612, and$803,33 1 from the Sewer Facility fund for capital improvement projects, via Resolution 2015-0135. In accordance with Council Policy Nol. 220-l06, approved, via Resolution,2015-0128.1 the financing costs shall be calculated,using the City's pooled investment earning rate on a quarterly basis. The balance was $18,607,9512 at June 30, 20191, of which all $18,607,952 is outstanding from the Sewer Fund to the Sewer Development Impact Flees Fund and the portion due from the Sewer Fund to the Storm Drain Fund has been paid in full. 2020-04-21 Agenda Packet, 74 Page 28,2 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 4—Interfund Balances and Transactions (Continued) Trans/ers.InlOut Interfund transfers for the year ended June 30, 2019, were as follows: Transfers In Sundry Uants Public Municipal Development Non-Major General Special Development Financing 'Financing Services, CV Elite Govemmental Transfers Out Fund Revenue Fund Impact Fund Authority Authority Fund Training Center Funds Total General Fund 115,689 1,63�5,686 798,270 S 374,529 189,586 1,065,289 S 4�179,049 Sundry Grants Special Revenue 1 X5�236 - - - - 763,126 1,788,362 Development Impact Fund - - 3�1 14X3 1,524,860 - - 4,639,18�3 SewerFund 3,026,241 - - 131568 3103918�09 Development Services Fund 1,9�23,648 - - 1�923�648 CVE]Ite Training Center - - - 26fi27 261627 Non-Ma.jor Governmental Funds 419,81 i832 42 107�415 8561912 - 73�125 - 1 6M 1%327 Total 1 01956�957 1151731 107�415 5160�61921 213231130 461�222 18%586 1�855�043 2 1 fi]_605 General Fund— Operating support to reimburse the General Fund for City staff services and equipment. Total amount of reimbursement was $10,956,957. T" 7 Sundry Grants Specia/Revenue T 7 und—Transferring the matching contribution to the federal grants in the amount of$115,73 1. Deve,lopment Imp ct Fund—Transferring transportation funds for development projects in the amount of $1071415. .Public Financing AuthoLtty—Funding debt service -funds for repayment of various long-term. obligations amounted to $5,606,9,2 1. M'unic�pql Financing Authori — Funding debt service fund for repayment of long-term obligation amounted to $2,323,130. Development Services Fund...............Operating support to reimburse the Development Services Fund for services provided; $374,529 reimbursement from the General Fund; $13,568 from Sewer Services; and—$73,125 from the Chula Vista Housing Authority. Chula Vista.Elite Athlete Training Center—Reimbursementstrom General fund: $189,586-for telecom,site license fee. Non-maior Governmental Funds — Transfer -from General -fund in the amount of$1.,065.,289 -for various debt obligations. Transfer from Chula Vista EliteAthlete Training Center to,Eastlake Maintenance District in the amount of $261,627 for taxes related to City owned property. Various transfers between Sundry Grants Special Revenue fund in the amount of$763,126. 2020-04-21 Agenda Packelt 75 Page 28,3 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 5—Capital Assets A Government-Wide Financi*a/Statements Summary of changes in capital assets for governmental activities for the year ended June 3 0,20 19, are as follows: Balance CIP Balance July 1,2018 Additions Deletions Transfers June 30,20�19 Capital assets,no�t being depreciated: Land $ 436,830,968 $ 395,000 $ (180,000) $ 437,045,968 Construction in progress 62,739,319 42,317,270 (1,268) (15,381,967) 89�,673,354 -1 Total capital as,sets,,not being depreciated 499,570,287 4217.12,270 (1.81,268) (1.5,381,967) 526,719,322 Capital assets,,being depreciated: B�uilding,s 203,,9�48,084 - 203,948,084 Improvements other than buildings 132,509,776 '12,8 7 0 2,431,50�7 13,4,954,153 Machinery and equipment 39,9�75,542 5,830,112 (3,112,069) 42,693,585 Infrastructure 761,322,077 3,846,573 12,9�50,460 778,119,110 Subtotal Ll 37,755,479 9,689,555 (3,112,069) 15,381,967 '1,15 9�,714,9 3,2 Less accumulated depreciation Buildings (60,831,743) (3,99�6,320�) - (64,828,,063) Improvements other than buildings (54,337,89�4) (2,69�4,801) - - (57,032,695) M.achinery and equipment (27,645,5�64) (3,283,263) 3j 10,9 28, - (27,817,899) Infrastructure (334,499,435) (20,442,987) - - (35�4,942,42,2) Subtotal (477,3'14,636) (3 0,,417,3 71) 3,110,92,8 - (504,62,1,0,79) Total capital assets,being depreciated 6�60,440,843 (20,727,816) (ij 4 1) '1 5,381,96�7 655,093,853 Total.governmental activities $1,160,0�11,130 $21,984,454 $ (182,409) $ $1,181,813,,175 2020-04-21 Agenda Packet, 76 Page 28,4 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 5—Capital Assets (Continued) A Government-Wide-Financial Statements (Continued) Depreciation expense was charged to functio�ns/programs as follows: General government $ 3305 .Public safety 21388,16�05 Public works 25081649 Community Development 371772 Parks and recreation 118271724 Library 17�848 Internal s,ervice 24�31078 $ 301417.1371 Surni-nary of changes in capital assets for busi.n.ess-type activities -for the year ended June 30, 201.9, are as follows: Balance CIP Balance July 1,2018 Additions Deletions Transfers June 30,2019 Capital assets,not being depreciated: Land 180,677,144 $ - $ $ 180,677,144 Construction in progress 4,174,411 975,374 (1,360,678) 3,789�,107 Total capital assets,not being depreciated 184,851,555 975,374 (1,360,678) 184,466,251 Capital assets,being depreciated: Buildings and structures 17,027,5,88 - 17,027,588 Machinery and equipment 6,9�47,053 318,449 (40�2,959) - 6,862,543 Infrastructure 2,47,123,39�6 - 1,360,678 2,48,484,074 Subtotal 271,098,037 31.8,449 (4.0�2,959) 1,360,678 272,374,205 Less accumulated depreciation Buildings and structures (675,99�5) (337,146) - - (1,013,141), Machinery and.equipment (3,935,078) (940,680�) 40�2,959 (4,472,799) Infrastructure (123,650,869), (5,613,9,07) - (129,264,776) Subtotal (1,28,261,942) (6,891,733) 40�2,959 - (1.34,750,71.6) Total capital assets,being deprec�iated 1.42,836,095 (6,573,284) - 1,360,678 1.37,623,489 Total business-type activities, $ 327,687,650 $ (5,597,910) $ - $ - $ 322,0�89�,740 Depreciation.expense for business-type activities for the year ended June 30, 201.9, are as follows: CV Elite Training Center $ 337�146 Sewer 61537�837 Sewer Development Impact Fees 3.1041 Development Services 101361 Tran s it 3�348 61891�733 2020-04-21 Agenda Packet, 77 Page 28,5 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 5—Capital Assets (Continued) -B. -Fiduciary Funds-Financial Statements Summary of changes in capital assets for fiduciary funds for the year ended June 30, 20�19, are as follows: Balance Balance July 1,2018 Additions Deletions June 30,2019 Capital assets,not being depreciated: Land $ 611421055 $ 191,975 $ (733,950) $ 5,60�0,080 Total capital assets,not being depreciated 6,142,055 191,9,75 (733,950) 5,60,0,080 Capital assets,being depreciated: Buildings 2,386,218 - - 2,386,218 Subtotal 21386,218 - 2,386�1218 Less accumulated depreciation Buildings (1,397,188) (47,725) - (1,444,913) Subtotal (1,397,188) (47,725) - (1,444,913) Total capital assets,being depreciated 989,030 (47,725) - 941,305 Total fiduciary activities $ 7,131,085 $ -144,250 $ (733,950) $ 6,541,385 "Depreciation.expense for fiduciary-funds for the year ended June 30�, 2019,was $47,725. Note 6—Long-Term Debt Governmental Activities Long-Term Debt A summary of changes in governmental activities long-term debt for the year ended June 30, 2019�, is as follows: Classification Balance De bt De bt Balance Due within Due in More July 1,2018 Issued Retired June 30,20�19 O�ne Year "than One Year Bonds Payable: Certificate of Participation $ 78,260,000 S $ 314901000 $ 74,770,0�00 $ 3,660,000 $ 7 Ij 10,000 I ease Revenlie Bonds 92,065,000 6,660�,000 851�405,000 7,080,000 78,325,000 Unamortized Bond Premium 16,260,901 1,14 8 6,613 .1 4�774�28,8 - 1,417741288 Direct BorrovAngs,and Direct Placements: Section 108 Lo�an 6,332,00�O 446,000 5,886,0�00 468,000 5,418,000 Notes Payable 3,269,491 - 523,434 2,746,0�57 524,343 2,221,714 Capital Leases 5,125,643 759,697 641,349 5,243,991 935,153 4,30�8,838 Total $ 201,3 13,035 759,697 $ 13,247,396 $ 188,825,336 $ 12,667,496 $ 176,157,840 2020-04-21 Agenda Packet, 78 Page 28,6 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Govern mental Activiti es Long-T erm Debt(Continued) A. Certificates qf Partic*ation IP Classification Balance Debt Debt Balance Due within Due in More July 1,2,0�18 Is s ued Retired June 30�,2019 One Year Than One Year 2014 Rcftuiding COP $ 39,440,000 $ $ 1,81 0,00�O $ 37,630,000 $ 1,89,5,00�O $ 35,735,00�O 2015 Refunding COP 30,220,000 1,680,00�O 28,540,000 1,765,000 26,775,00�O 2016 Refunding COP 8001000 8,600,000 - 8,60�0,00�O Total $ 78,260,000 $ $ 3,49,0,00�O $ 74,770,000 $ 3,660,00�O $ 7 1,11 0,00�O 2014.Refunding CO,t'- In February 2014, the Chula Vista Public Financing Authority (Authority) issued $45,920,000 in 2014 Certificates of Participation to refinance the City's outstanding 2002 Certificates of Participation (Police Facility Project), fund a reserve fund, and pay the costs incurred in. connection, with, the execution and delivery of the Certificates. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Should the City default under theLease,the Trustee, as assignee of theAuthority, may terminate theLease and re-lease the Leased Premises or may retain, the 'Lease and hold the City liable -for all Lease Payments, thereunder on. an annual basis. Under no circumstances will the Trustee have the right to accelerate Lease Payments. Interest is payable semiannually onApril 1. and October 1. of each, year, commencing October 1., 201.4. The certificates mature in 2032 and principal is payable on October 1. each year, commencing October 1, 2014. As of June 30, 2019, the outstanding balance is $37,630,0�00. The annual debt service requirements for the 2014 Certificates, of Participation outstanding at June 30, 2019�, are as follows: Year Ending June 30, Principal Interest Total 2020 $ 11895,000 $ 11703,706 $ 31598f7O6 2021 2,0001,000 11606,,331 31606,331 2022 21100,000 1,5031831 3,,603,1831 2023 2,2101,000 1,3961081 31606,081 202,4 2,3301,0010, 1,2821581 3161.21581 2025-201291 1.3,6015,01010, +,490f781 1.81095,1781. 2030-20�33 13,49,01,01010, 1112,2188�4 14,612,884 Total $ 37f630,fO,0101 $ 13f10611.95 $ 5017361195 2020-04-21 Agenda Packet, 79 Page 28,7 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Govern mental Activiti es Long-T erm Debt(Continued) A. Certificates qf Partic*ation (Continued) IP 2015 Rc �,Lynding C0,1 In. August 2015, the Chula Vista Public Financing Authority, (,Authority) issued $34,330,000 in. 201.5 Certificates of Participation.to refinance the City's outstanding 2004 Certificates of Participation (Civic Center Project Phase)and a portion of the 2006 Certificates of Participation(Civic Center Project Phase.11), fund a reserve fund,and pay the costs incurred in connection with the execution and delivery of the Certificates. The refunding resulted in. a difference between, the reacquisition. price and the net carrying amount of the old debt of$445,970, which, 'is reported as a deferred out-flow of resources in the accompanying financial statements and amortized over the remaining life of the refunded debt. The City completed the refunding to reduce its total debt service payi,,-nen,.ts by $4,384,723 and to obtain.an. economic gain (difference between, the present values of the o�ld and new debt services payments) of $3,073,,833. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Should the City default under the Lease, the Trustee, as assignee of the Authority, may terminate the Lease and re-lease the Leased-premises or may retain the Lease and hold the City liable for all Lease Payments thereunder on an annual bas,is. Under no circumstances will the Trustee have the right to accelerate Lease Payments. Interest is payable semi-annually on March 1. and September I of each,year, commencing Marchl, 201.6. The certificates mature in.2034 and principal is payable on. March I each year, commencing October 1, 2015. As of June 30, 2019, the outstanding balance is $28i5401000. The annual. debt service requirements for the 2015 Certificates, of Participation outstanding at June 30, 2019, are as follows: Year Ending June 30, Principal Interest Total 2020 $ 117651000 $ 11157,,263 $ 2,,922,263 2021 11860,000 110691013 2�1929,,013 2022 11945,000 9761013 21921,013 2023 21040,000 878,,763 2,,918,763 20�24 21145,000 776t763 2f9211763 2025-2029 91410,000 21748,688 12f1581688 2030-2034 9,,375,000 111.30f494 10,505,494 Total $ 28,540,000 $ 81736,997 $ 37,276,997 2020-04-21 Agenda Packet, 80 Page 28,8 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Govern mental Activiti es Long-T erm Debt(Continued) A. Certificates qf Partic*ation (Continued) IP 2016 Rc �,Lynding C0,1 In. July 2016, the Chula Vista Public Financing Authority (,Authority) issued $8,600,000 in. 2016 Certificates of Participation (Certificates), to current refund all of the City's outstanding 200�6 Certificates of Participation (Civic Center Project—Phase 2), to satisfy the reserve requirement with respect to the Certificates and to pay the costs of issuance of the Certificates. The refunding resulted in. a difference between.the reacquisition.price and the net carrying arnount of the old debt of $221,204., which is reported. as, a deferred outflow of resources 'in the accompanying -financial statements and amortized over the remaining life of the refunded debt. The City completed the refunding to reduce its total debt service payments by $1,144,525 and to obtain an. economic gain (difference between the present values of the old and new debt services payments) of$,97'3,849. The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Should the City default under the Lease.) the Trustee, as ass,ignee of the Authority, may terminate the Lease and re-�lease the Leased Prernises or may retain. the Lease and hold the City liable for all Lease Payments thereunder on an annual basis. Under no circumstances will the Trustee have the right to accelerate LeasePayments.Interest is payable semi-annually on March I and September I of each year, com.mencing.M.arch 1, 20.17. The certificates mature in.2036 and principal.is payable on.March 1. each. year, commencing March 1, 2027. As of June 30�, 2019, the outstanding balance is $8,600,000. The annual. debt service requireni.ents for the 2016 Certificates of Participation, outstanding at i un.e 30, 2019�., are as follows,. Year Ending June 30�, Principal Interest Total, 2020 $ - $ 2821550 $ 282,550 2021. - 282,550 282,550 2022 - 282f550 282f550 2023 - 282,550 282,550 2024 - 282,550 282,t550 2025-2029 21265,000 11353,350 316181350 2030-2034 413801000 721,500 51101,500 2035-2036 11955�1000 88,500 2fO43f5OO 11 Total $ 8�1600,,000 31576,100 $ 12,176flOO 2020-04-21 Agenda Packet, 81 Page 28,9 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Govern mental Acfiviffi*es Long-T erm Debt(Contlinued) B. Lease R'evenue.Bonds Class i fication Balance Debt De bt Balance Due within Due in More July 1,2018 Issued Retired June 30,2019— One Vear Than,One Vear 2016 Lease RevenLie ReffirldIng Bonds $ 23,130,00�O $ $ 1,330�,O�00 $ 21,800,000 $ 1,370,000 $ 20,430,0�00 2017 Lease Revenue Bonds 55,805,000 - 5,330�,O�00 50,475,000 5,605,000 44,870�,O�00 2017 Lease Revenue Bonds,Scries A 12,045,000 - 12,045,000 - 12,045,0�00 20 17 Lease Revenue Bonds,Series B 1,085,000 - 1,085,000 105,000 980,000 To ta 1 $ 92,065,000 1$ - $ 6,660�,O�00 $ 85,405,000 $ 7,080,000 $ 78,325,000 20-16 Lease Revenue.Re&nding.Bond,� In July 2016, the Chula Vista Municipal Financing Authority (Authority) issued $25,885,000 in 2016 Lease Revenue Refunding Bonds to refinance an existing lease by advance refunding the City's outstanding 2010 Certificates of Participation (Capital Facilities Refunding Projects) and to pay the costs of issuance of the Bonds. The refunding resulted in a difference between the reacquis,ition price and the net carrying amount of the old debt of$4,898,,948, which. is reported as a de-ferred outflow of resources in. the accompanying I'Mancial statements, and amortized over the remaining life of the refunded debt., The City completed the refunding to reduce its total debt service payments by $2,167,047 and to obtain an economic gain (difference between the present values of the o�ld and new debt services payments)of$2,293,798.The source of repayment of the certificates is the lease payments to be made by the City to the Authority. Should the City default under the Lease Agreement,the Trustee, as assignee of the Authority, may terminate the Lease Agreement and re-lease the Leased,Property or may retain.the LeaseAgreemen.t and hold the City liable for all. 'Base Rental. Payments thereunder on. an annual basis. Under no circumstances will the Trustee have the right to accelerate Base Rental Payments. Interest is payable semi-annually on November I and May I of each year, commencing November 1, 20�16. The certificates mature in 2033 and principal is payable on May 1. each year, commencing May 1, 2017. As of June 30, 2019�,the outstanding balance Is $21,800,000. The annual debt service requirements for the 2016 Lease Revenue Refunding Bonds outstanding at June 30, 2019, are as follows: Year Ending June 30�, Principal Interest Total 2020 $ 1f370f000 $ 78,0,1175 $ 21150f175 2021. 11410,000 739,075 211491075 2022 If460f000 68,21675 21142,675 2023 If520f000 624f275 2fl44,,275 2024 L585f000 5631475 21148,,475 2025-2�029 8f815f000 1f9191338 10�,734f338 2030-2,033 5f64OfOOO 462,800 611021800 Total $ 21f800f000 5f 771,81.3 $ 27f571,81.3 2020-04-21 Agenda Packet, 82 Page 290 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Govern mental Activiti es Long-T erm Debt(Continued) B. Lease Revenue Bonds (Con,ti'nued) 2017 Lease Revenue Bonds In. June 2017, the Chula Vista Municipal Financing Authority (Authority) issued $611,355,000 in, 201.7 Lease Revenue Bonds to finance infrastructure, facilities and equipment and to pay,the costs of the issuance of the Bonds. Should the City default under the Lease Agreement,the Trustee, as assignee of the Authority, may terminate theLease Agreement and re-lease the Leased Property or may retain theLease Agreement and hold the City liable for all. Base Rental- Payi,'nents thereunder on. an. annual. basis,. Under no circumstances will the Trustee have the right to accelerate Base Rental Payments. Interest is payable semi-annually on November I and May I of each year, commencing November I� 2017. The bon,ds mature in,. 20�27 and principal is payable on. May I each, year, commencing May 1, 20 19. As,of June 30, 2019�,the outstanding balance is $50�,475,000. The annual debt service requirements for the 2017 Lease Revenue Bonds outstanding at J un.e 30, 2019�., are as follows,: Year Ending June 30�, Principal Interest Total 2020 $ 51605,000 $ 2,5231750 8,128,750 2021 5f885,000 2,243,500 81128f5OO 2022 61185,000 11949,250 81134,250 2023 6,1,80,000 1,640�,O�O�O 7182OfOOO 2024 6f175f000 1,331,0�00 71506,000 2025-2027 201445f000 21077,750 22f522,750 Total $ 501475f000 $ 1117651250 $ 62f240,250 20.17.Lease.Revenue.Bonds, Series.A (yew Clean.R'enewable,.EneW.Bonds—.FederalIv .1 ax I T-I In December 20 17, the Chula Vista Municipal -rinancing Authority(Authority) issued $12,045,0�00 in 2017 LeaseRevenue Bonds, Series A (New Clean Renewable Energy Bonds—Federally Taxable), to finance photovo�ltaic energy systems at various City -facilities,,to capitalize interest on the Bonds and to pay the costs of issuance of the Bonds. Should the City default under the Lease Agreement,the Trustee, as assignee of the Authority, either may terminate the Lease Agreement and re-lease the Leased "Pro�p�erty, or may retain. the Lease Agreement and hold the City liable for all Base Rental Payments thereunder on an annual basis. -Under no circumstances will the Trustee have the right to accelerate Base Rental Payments. Interest is payable semi-�annually on December 1. and June 1. of each year, commencing June 1, 201.8. The bonds mature in. 2049 and principal. is payable on. December 1. each year, commencing December 1, 202 1. As of June 30, 2019, the outstanding balance is $1210451000. 2020-04-21 Agenda Packet, 83 Page 291 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Govern mental Acfiviffi*es Long-T erm Debt(Contlinued) B. Lease Revenue Bonds (Continued) 2017 Lease Revenue Bonds Se�rie>s A w Clean Renewable EneLgv Bonds—Federa/ly ryl I axy (Continued) The annual debt service requirements-for 2017 Lease Revenue Bonds,, Series A(New Clean.Renewable Energy Bonds—Federally Taxable) outstanding at June 30, 20 19, are as follows: Year Ending june 30, Principal Interest Total 2020 $ 485,781 $ 4851781 20,21. - 4,85f781 4851781 2022 401,000 485f2,62 525�1262 2023 501,01010, 4841045 5341045 2024 65,01010, 482�t374 547,374 2025-2029 725,01010, 2,3541278 31079,278 2030-20�34 1,775,01010, 2,1281783 319031783 20,35-2039 213501000 117301869 4,0801,869 20,401-2044 31065,000 1J851782 4,2501,782 2014,5-2049 31975,000 441,928 4141619,28 Total $ 1210451000 $ 1,01264,883 $ 22,309,1883 2017 Lease Revenue.Bonds, Series B�Tax-Exe In December 20,17, the Chula Vista Municipal Financing Authority(Authority) issued $12,045,0,00 in 2017 Lease-Revenue Bonds, Series.13 (Tax-Exempt),to finance photovoltaic energy systems,at various City faci.l.ities, to capitalize interest on.th.eBonds and to pay the costs of issuance of theBonds. Should the City default under the Lease Agreement, the Trustee, as assignee of the Authority, either may terminate the Lease Agreement and re-lease the Leased Property, or may retain the Lease Agreement and hold the City liable fo�r al.l. Base Rental,. Payments thereunder on. an. annual basi.s. Under no circumstances will the Trustee have the right to accelerate Base Rental Payments. Interest is payable semi-annually on December I and June I of each year, commencing June 1, 2018. The bonds mature in 2029 and principal is payable on December I each year, commencing December 1, 2019. As of June 30, 201.9,the outstanding balance is, $1,085,000. 2020-04-21 Agenda Packet, 84 Page 292 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Govern mental Acfiviffi*es Long-T erm Debt(Contlinued) B. Lease Revenue Bonds (Continued) 2017 Lease Revenue Bonds, Series B (Tax-ExempQ,tconrinued) The annual debt service requirements for 2017 Lease Revenue Bonds, Series 13 (Tax-Exempt), outstanding at June 30, 2019, are as follows: Year Ending June 30, Principal Interest Total 2020 $ 1051000 $ 40,775 $ 145,775 2021 105,00101 3711,00 1,42,100, 2022 1015,01010, 32,900 137,9001 2023 1101,01010, 28,600 1,38,6010, 2024 110,010101 24f2OO 134,2010, 2025-20�27 550,010101 55fOOO 605,0010, Total $ 1f08510001 $ 218f575 $ 11303,575 C. Section 108 Loan In June 2010,8,the City entered into a Contract for Loan Guarantee Assistance with the U.S.Department of Housing and Urban.Development ("HUD") as part of the Section. 108 .Loan..Program.in,the amount of$9.,500.,000. The Section 1.018 Loan is an "advance"of-future CD,BG entitlement funds and', as such', is repaid with a portion of the City's annual entitlement. Proceeds, of the loan will be used to fund multiple capital improvement projects. Debt service payments will be made with future C.D.BG entitlernents for 20 years, with.interest payments beginning with.fiscal.year 2009. As of June 30, 2019, the outstanding balance is $,5,886,000. The annual debt service payments are as follows: Year,Ending June 30, Principal Interest Total 20,20 $ 468,000 $ 2�95f428 $ 763,428 20,21. 492,000 271/830 763,830 20,22 516,000 246/599 762,599 20,23 542,000 219/6�6,8 761,668 20,24 569,000 1911000 760,000 2025-20�29 3�,291%000 460f381 3/759,381 Total $ 5f 886,000 $ 11684,9016 $ 71570,906 2020-04-21 Agenda Packet, 85 Page 293 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Govern mental Activiti es Long-T erm Debt(Continued) D. -Notes Payable Classification Balance Debt Debt Balance Due Athin Due in More June 30,2018 Is s ued Retired June 3�0,2019 One Year Than One Year 'raxable QECB Lease PLirchase Agreement $ 1�262,341 $ 189,401 S 1,072,940 19 1 1125 $ 881,815 Califomial.`,nergy Commission(CEC)Loan#2 1,251,683 1.40,663 1,11 1,0�20 144,829 966,191 California Energy Conin-ission(CEQ Loan#3 7231 160 178,096 545M64 179�1870 3651194 SDG&E OBF Loan#I(Parkway Boiler) 25,551 8,518 17,0�33 8,519 8,514 SDG&E 0131�'Uan#2(Transit HVAQ 6,756 6,756 - - - Total CEC N)ans/SD(i&,E On Bill Financing 2,007,150 334,033 1,673,117 333,218 '1,339,899 Total 3,269�,491 523,434 2,746,,O�57 524,343 2,221,714 .Taxable QECB LeaselPurchase.Agreement On December 3 1� 2012, the City entered into a lease purchase agreement with a private party to purchase certain,. energy conservation. equipment. The lease/purchuse agreernent would bridge the -financial gap between the Municipal Street Listing Retrofit Project capital costs and the available rebates, for energy conservation equipment. As of June 301) 2019., the outstanding balance is $1,072,940. The annual debt service requirements are as follows: Year Ending June 30, P,rincipal Interest Total 2020 $ 191,125 $ 40�f6�00 $ 231,725 2021 192�/864 33/015 225f879, 2022 1.94f619 25f360 219f979 202,3 196,391 17,636 214fO27 2024 1,98f 177 91841 208f018 2025 99f 764 L975 10�1,739 Total, $ 1f O�72,940 $ 128,427 $ lf201,367 Cali&rnia Enercry C'ommissio�n LoanslSDG&E On-Bill Finan On September 25, 2007, the City Council approved Resolution 2007-241 authorizing the City's participation in the California Energy Commission ("CEC") and the SDG,&E O�n-�Bill Financing program. The loans would bridge the financial. gap between. energy conservation project capital costs and the available rebates for energy conservation equipment. As of June 30, 2019,, the outstanding balance is $1,673,117. The annual debt service requirements are as follows: 2020-04-21 Agenda Packet, 86 Page 294 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6-Long-Term Debt(Continued) Govern mental Acfiviffi*es Long-T erm Debt(Contlinued) A Notes.Payable(Continued) Ca/iLornia EneW Commission Lo�ansISDG&E On-Bill Finane,ing ntinued) Year Ending June 30, Principal Interest Total 20�20 $ 3331218 $ 37f357 $ 370f575 2021 339�f497 311078 370,575 2022 337f311 241745 362/056 202,3 158f453 18f717 177,170 202,4 163/208, 13/962 177,170 2025-2026 341f430 12,907 354,337 r, l7otal $ 1f673f117 138f766 $ 1,8111883 E. CapitalLeases C I ass ification Balance De bt D�e bt Balance Due within Due in More July 1,2018 Issued Retired June 30,2019 One Year Than One Year &-,)lar Energy Firlancing '1,359,,559 S 125,834 '1,233,725 $ 68,576 $ tj 65,149 Osh Kosh Capital 260�736 84,448 1 76�288 861888 89�400 Marlin Panasonic 127,790 101,464 26,326 25,820 506 PNC Equipment 1,059,364 118,289 94 1,075 122,075 819,000 JP Morgan.Equipment.Lease 1,117,954 1.1.3,91.3 1,004,041. 116,362 8,87,679 Mo,to,rola PSA Equipment Lease 1,183,510 - 1,183,510 132,0 11 1,051,499 Mail.Folding Machine Lease 1 6�730 2,4 3 9 14�291 3�573 10��718 BC1 Capital Lease Payable-26 Vehicl - 759,697 94,962 664,735 379,848 284,887 Total $ 5,125,643 $ 759,697 641,349 5,243,991 $ 935,153 4,308,838 So�lar EneM . inanciLig On July 23, 2013, the City Council app�roved Resolution 2013-149 authorizing the City to utilize a $2,121,,500 Tax-Exempt Facility 'Lease 'Purchase Agreement with Ban.c of America, which. would be rep,aid through the annual energy cost savings. The future Ininimurn.lease obligation and the net present value of these Inini.Inum lease payments as of June 30. are as follows: 2019.� Year Ending June 30, Principal Interest Total, 2020 $ 68576 $ 48,105 $ 1161681. 2021 74,259 45,339 119,598 2,022 80,242 42,346 122,588 2,023 86,540 39,113 125,653 2,024 93,166 35,629 128,795 2025-20�29 577,819 116,092 693,911 2023-20�31 253,123 11,638 26,4,761 Total $ 1,233,725 $ 338f262 $ 1,571,987 2020-04-21 Agenda Packet, 87 Page 295 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Govern mental Acfiviffi*es Long-T erm Debt(Contlinued) E. Capital Leases(Continued)� Osh Kosh Capital On.October I i 2013,the City Council approved Resolution.20 13-204 authorizing the City to enter into a seven-year lease purchase agreement with O�sh Ko�sh Capital for the acquisition of a Pierce Arrow XT Triple Combination Pumper Fire Engine at a price of$578,224. The future ini.nimum.lease obligati.on,and the net present value of these i'ninii'num.lease payments as of June 30, 2019,, are as follows: Year Ending June 30, Principal Interest Total 2020 $ 861888 $ 5f095� $ 91,983 2021 89,400 2f583 91,983 Total $ 1761288 $ 7f678 $ 1.83,966 ,Wrlin-Panasonic On March 4�, 20 15,the City Council approved Resolution 2015-044 authorizing the City to enter into a five-year lease purchase agreement with Marlin Business Bank for the acquisition of 99 Panasonic Toughbooks at a price of$3771487. The future ini.nimum.lease obligati.on,and the net present value of these i'ninii'num.lease payments as of June 30, 2019,, are as follows: Year Ending June 30, Principal Interest Total 2�O2�O $ 25�1820 $ 263 $ 26,083 2,02,1 5�06 - 506 Total $ 26,326 $ 263 $ 26,589 2020-04-21 Agenda Packet, 88 Page 296 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Govern mental Acfiviffi*es Long-T erm Debt(Contlinued) E. Capital Leases(Continued)� PNC Equ�pment Lease In. November 20 1.5, the City entered into a capital lease agreement with PNC E quip.rnent Finance fo�r the acquisition of two Pierce Arrow XT Triple Cornbi nation Pumper/F ire Engines. The lease term is ten years and the lease amount is $1,285,053 to be paid in annual installments beginning November 2016. The future minimum lease obligation and thenet present value of these minimum lease payments as of June 30, 2019, are as follows: Year Ending June 30, Principal Interest Total 20�20 $ 122,1075 $ 30,114 $ 152,189 20�21 125,981 26f2,08 152,189 20,22 1,30f012 22fl.77 15211,89 20,23 1,34fl,73 18f016 15211,89 2024 1381466 1,311723 152,,189 2�025-202�6 290,367 1,41011 304,3178 Total $ 941f075 $ 124f249 $ 1f0651323 JP Morvan Equ�pment Lease In August 2016,, the City entered into a cap�ital.lease agreernent with JP .Morgan Chase Bank, N.A. for the acquisition of one P�ierce Fire Engine. The lease term is ten years and the lease amount is$1,229�,470 to,be paid in annual installments beginning in August 2017. The future minimum.lease obhgati.on and thenet present value of these minimum lease payments as,of June 30, 2019, are as follows: Year Ending June 30, Principal Interest Total 2020 $ 1.1.61362 $ 21,587 $ 1.37,949 2021 118,,864 19f085 13�7,,949 2022 121,419 16�1530 1371949 2023 124/030 13/919 137,949 2024 126/6�97 11,252 137/949 2025�-2027 39616�6�9 17f178 413f847 Total $ 11004fO�41. $ 99f5m $ 1,1.03f592 2020-04-21 Agenda Packet, 89 Page 297 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Govern mental Acfiviffi*es Long-T erm Debt(Contlinued) E. Capital Leases(Continued)� Motorola Solutions CAD Equip ent Lease In. July 2017, the City entered into a capital lease agreement with. Motorola Soluti.ons, Inc. for the acquisition of a PSA Systern. The lease term is ten years and the lease amount is $1,351,409 to be paid in annual installments beginning in July 2018. The future min.i.mum.lease obl.i.gati.on,and the net present value of these m-inii,-num.lease payments as of June 30, 201%, are as follows: Year Ending June 30, Principal Interest Total 2020 $ 132,011 $ 38,227 $ 170,238 2021 13,61275 33,r963 170,238 2022 14016,77 2%562 170,239 2023 145�1220 25f018 170if238 2024 149,91.1. 201f327 170if238 2025�-2027 479,416 31,298 510t71.4 Total $ 1,183,51.01 $ 1.78,395 $ 1,361.19015 Ma il Folding Machine Lease In January 20,18, the City entered into a capital lease agreement with Mail Finance, Inc. for the acquisition of a mail folding machine. The lease term is ten years and the lease amount is $17,245 to be p�ai.d in.annual,.installments beginning in.July 2018. The future minimum lease obligation and the net present value of these minimum lease payments as,of June 30, 201.9, are as follows: Year Ending June 3�0, Principal Total 2020 $ 31573 $ 31573 2021 3,573 31573 2022 3,573 31573 2023 31572 31572 Total $ 14,291, $ 14.,291, 2020-04-21 Agenda Packet, 90 Page 298 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Govern mental Acti,viffi*es Long-T erm Debt(Contlinued) E. Capital Leases(Continued)� BO'Capital Vehicle Leqsc�v In. March. 2019, the City entered into two capital. lease agreements with. BCI. Capital., Inc. for the acquisition of 26 vehicles. The lease term is two years and the lease amount is $759,697 to be paid in annual installments beginning in April 2019�. The future minimum lease obligati.on and the net present value of these rninii­.num lease payments as,of June 30. are as follo�ws: 2019.� Year Ending June 30, Principal Total 2�020 $ 379,848 $ 379,848 2,021. 284,t8,87 284,887_ Total $ 664,735 $ 6641735 Fliducliary Funds L,ong-Term Debt A. Tax Allocation Bonds Classification Balance Debt, Debt Balance Due%Nithin Due in More June 30,2018 Issued Reti red June 30,2019 One Year Than One Year Bonds Payable: 2016TaxAllocation Refunding Bonds $ 27,9�3�0,000 $ (1,665,000) $ 26,265,000 1,725,000 $ 24,540,000 Unamortized Bond Premium 4,219,019 (234,390) 3�,984,629 - 3,984,629 To�tal 32,149,019 $ (1,899,390) $ 30,249,629 S 1,,725,,000 $ 28,524,629 2016 Tax A.11ocation&Lynding Bonds In July 2016,, the Successor Agency to the Redevelopment Agency of the City of Chula Vista (the Successor Agency) issued $29,315,000 in 2016 Tax Allocation Refunding Bonds to refinance the following obligations of the Former Agency: • Bayfront/Town.Centre Redevelopment Project 2006 Senior TaxAllocati.on.RefundingBonds, Series A, currently outstanding in the principal amount of$8,770,000; 9 Bayfront/To�wn Centre Redevelopment"Project 2006 Subordinate Tax All ocatio�n 'Refunding Bonds, Series B, currently outstanding in the principal amount of$8,245,000; and • 20�O�8 Tax Allocation Refunding Bonds (Merged Redevelopment Project), currently outstanding in the principal amount of$20,450,000. 2020-04-21 Agenda Packet, 91 Page 299 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Fliducliary.Funds,Lon.g-Term Debt(Continued) A. Tax Allocation Bondv (Continued) The refunding resultedin a difference between the reacquisition price and the net carrying amount of the old debt of$11669,678, which is reported as a deferred outflow of resources in the accompanying financial,. staternents and amortized over the rem.ai.ning life of the refunded debt. The City completed the refunding to reduce its total debt service payments by $9,561,41.0 and to obtain an economic gain (difference between the present values, of the old and new debt services payments) of$4,61.7,835. In the event of default of the payment of the scheduled principal of or interest on the 201.6 Insured Bonds when all. or some becomes due, the Trustee on. behalf of any owner of the 201.6 Insured Bonds shal]. have a claim under the 2016 Insurance Policy for such payments. The maturity of Insured Bonds shall not be accelerated without the consent of the 2016 Insurer. Interest is payable semi-annually on April I and October I of each.year,commencing Apri], 1,2017. The certificates mature in,203�7 and principal. is payable on October I each year, commencing October 1,2017. As of June 30,2019,the outstanding balance is $26,265,000. The annual. debt service requirements for the 2016 Tax Allocation Refunding Bonds outstanding at June 30, 2019�, are as,follows: Year Ending June 30, Principal. Interest Tota] 202,0 $ 1,,725,000 $ 11082,075 $ 21807,075 2021 1,7701000 1,020,,800 2179018�00, 202,2, 1,,840,000 948,600 217881600 2023 1,,920,,000 873,400, 2f 793,,400, 2024 1,,995.,000 795,,100 21790,100 2025-2029 8f215f000 2f8�07,925 11,022f925 2030-2034 5,100,0100 1,39717501 6,,497.,750 2035-2037 3f7OOfOlOO 199f975 3f8�99f975 Total $ 26126510100 $ 91,,125,625 $ 35,,3�90,,625 2020-04-21 Agenda Packet, 92 Page 300 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Fliducliary.Funds,Lon.g-Term Debt(Continued) B. Tax Allocation Bondv (Continued) Pled ged Revenues The Successor Agency has pledged tax revenues to the repayment of theRDA.'s debts transferred to it on February 1, 2012 through the final maturity of the Bonds, or early retirement of the Bonds,, whichever comes first. Tax revenues consist of Redevelopment Property Tax Trust Fund distributions allocated to the RD�A's project areas,pursuant to Section 33670 of the Redevelopment Law excluding that portion.of such tax.incrernent revenues required to be paidunder tax-sbaring agreements unless the payment of such amounts has been subordinated. to payment of debt services on the Bond.s. Redevelopment Property Tax TrustFund distributions earned in fiscal year 2019 was $2,774�,802 and total. debt service of al.l. Tax, Allocation. Bonds paid was $1,6�65,000. The Bonds required 75% of net distributions. In future years, annual principal and interest payments on the Tax Allocation Bonds are expected to require 75% of Redevelopment Property Tax Trust Fund distributions. Special Assessment Debt—Non-City Obligations Bonds issued to finance public improvement projects in certain assessment districts are liabilities of the property owners and are secured by liens against the assessed properties. The City acts, as an. agent for collection of principal and interest payments by the property owners and remittance of such monies to the bondholders. The City has no obligation or duty to pay any delinquency out of any available funds of the City. Neither the faith., credit, nor the taxing power of the City is pledged to the payment of the bonds. Therefore, none of the following obligations are included in the accompanying basic financial statements. At June 30�, 2019, the special assessment debts outstanding are as,follo�ws: Or ii gii nal Outstanding Amount June 3022019 Special Tax Revenue Refunding Bonds, Series 2013 $ 721,1001000 $ 5817951,000 Special Tax Revenue Re-funding Bonds, Series 20 1 5,A 30�460.1000 28�10000 Revenue Refunding Bonds,Series 2015B 43,1695MOO 37fi]500 CFD 16-1 12�280.1000 12�28000 Ind'ustrial.Developm.ent.R,even�ue Bonds,2004 Series-A-F 25 1.�2651000 25 1>51000 Total $ 409180�010�00 $ 38,810�551�000 2020-04-21 Agenda Packet, 93 Page 301 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 6—Long-Term Debt(Continued) Multi-Family Hou-sing.13onds—Non-Clity Obligations Bonds issued to finance public improvement and/or affordable multifamily housing projects are liabilities of the developers and are secured by liens against the assessed property. The City has no obligation or duty to pay any delinquency out of any available-funds of the City.Neither the-faith,credit,nor the taxing power of the City is pledged to the payment of the bonds.Therefore,none of the following obligations are included in. the accompanying basic financial. statements. At June 30�, 201.9, the mulli-farnily housing bonds, outstanding are as follows: Original Outstandi ng Amount June 30 2007 A Oxford Terrace Apartments $ 2.1276�1000 $ 101 1000 2007 B Oxford Terrace Apartments 213631000 2i363IP00 2006 A Teresina Apartment Projects 37�94000 371940M00 2007 C Tlie Landing Apartment 16�6701000 5i,617�791 2013 A Congregational Tower 20�54000 1.074M93 2016 A-I Duetta Apts Homes 18167500 7�9781705 2016 A-3 Duetta Apts Hornes Junior 725.00 7251000 2016 13-1 Volta Apts Homes 201925,000 .10 11145,760 2016 B-3 Volga Apts Honies,Junior 7751000 775.1000 2010 A-I Landings 11 Senior 11�786,�233 10'1436J 36 2005A Rancho Vista 1�71500 11295MO0 2003�A Rancho Vista FI�48500 8�780M00 2019 Series 13-1 St.Regis Park Apartments 131300�.1000 101062.1413 2019 A Cordova and Trolley Apartments 6145000 2�915,361 To�tal $ 1 65fi251233 $ 120�369�259 Note 7—Un earn ed/Unavailable Revenue A. Government-Wide Financl*al Statements At June 30, 2019�.,unearned revenue was reported as follows: Grants $ 114991051 Development Impact Fees 394.�64_3 Total $ 1,989,311694 -B. Governmental Fund-Financial Statements At June 30,, 2019,unavailable revenue was reported as follows: Long-term receivables $ 11�8,49�8,04 Development irripact fees 11878,1515 Mi-scellaneous 81.�240.04 Total $ 21 i'968i'923 2020-04-21 Agenda Packet, 94 Page 302 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 8—Compensated Absences Govern,m.en.t-Wi.de.Fi.n.an.ci,.al. Statements—Governmental.Activities Summary of changes in governmental activities compensated absences for the year ended June 30�, 2019,is as fol-lows: Classification Balance Balance Due within Due in More June 30�,2018 Additions Deletions June 30,201.9 One Year Than One Year Compensated Absences $ 7�3�78118�8 $ 6M39,�785 S (5�4 2 3,�14;)., s 7�994�83 1, S 5187613,8,9, $ 2J 18442 Total $ 71378J88 $ 61039,785 $ (5,423,142) $ 7,99�4,831 $ 5i,876�389 $ 2�118442 The City's liability for vested and unpaid compensated absences (accrued vacation) has been accrued and amounts to $7,994,83 1. at June 30, 20.19. For the governmental activities, claims and judgments and compensated absences are generally liquidated by the general fund. In business-type funds, the liabilities are reported in the fund as the benefits vest and are earned. Compensated absences at June 30, 2019, are obligations of the following funds: Governi-nentalFunds $ 71�9541580 Fleet Management �40�251 'Total $ 71994183 1, Governmental-Wide Financial Statements—13usiness,jy,p,e Activities Compensated absences at June 30, 2019�, are obligations of the following funds: Classification Balance Balance Due within Due in More June 30,2018 Additions Deletions June 3 01 2 0 19 One Year Than One Year Compensated Absences 629�643 454�941 (429,353) $ 655,�231 $ 4411777 213145�4 1'otal 6291643 4541941 (429,353) $ 655,�231 $ 4411777 213145�4 Developm.enl. Services $ 437.1331 Sewer 217�900 'Total $ 655)231.. 2020-04-21 Agenda Packet, 95 Page 303 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 9—Other Required Fund Disclosures -At June 30�, 20.19, the following non.-maJor funds,had deficit fund equity.- Fund Type Funds Deficit Special Revenue Transportation Sales Tax $ 1�9K923 Capital Projects Bicycle Facility 41460 Capital Projects Other Transportation Program 23�4�219 Debt Service City Debt Service 41. Internal Service Fleet Management 706.18,15 .Transportation Sales Tax—The Transportation Sales Tax, Fund had an. accumulated deficit of$1,908,923 due to non-reimbursable expenditures that were incurred. The City does not expect to eliminate the deficit. Bicycle,Facility...............The Bicycle Facility Fund had an accumulated deficit of$4,460 due to non-reimburs able expenditures that were incurred. The City does not expect to eliminate the deficit. _T� Other Transportation Program — The Other Transportation Program rund had an accumulated deficit of $234�,219 due to non-reimbursable expenditures that were incurred. The City does not expect to eliminate the deficit. City .Debt Service — The Other Tran.sp�ortati.on, Program Fund had an. accui,,nul-ated deficit of $41 due to non-reimbursable expenditures that were incurred. The City does not expect to eliminate the deficit. Fleet.Management]'�und—The Fleet Management Fund had an.accumulated deficit of$706,81.5,due to the implementation of GAS-13 68 & GASB 75. The City expects to eliminate the deficit in future years via transfers,from other funds. Note 1.0—Self-insurance Averued L1*ab1*11*t1*eS, Califomia employers, including the cities, are required to provide for workers' compensation when the employees are injured on.the job and,the City of Chula Vista,in.compliance with,ifs workers compensation. obligations, has a self-insurance workers' compensation program. To administer City of Chula Vista's workers' compensation program. The City requires a qualified workers" compensation claims management service company (commonly called "Third Party Administrators"' or "TPA") to supervise and administer the workers" compensation claims made upon the City's self-insurance program. City Council of the City of Chula Vista authorized the City Manager to execute an Agreement with.Intercare Holdings Insurance Services, Inc., to act as the Third Party Admin.i.strator for the City's Workers' Compensation Program, effective July 1, 20,17. The term of this agreement began July 1, 2017 and ended on June 30, 2019 for completion of all Required Services. The Agreement may be extended for up to five (5) additional terms. The City is self-insured for the first $1,000,000 per occurrence for workers' compensation liabilities,. Excess workers' compensation coverage is obtained through participation in the CSAC Excess Insurance Authority's Excess Workers' Compensation.Program. As of June 30, 2019,there are 1.74 member entities participating in the program that offers per occurrence coverage up to$5,0�O�0,000 through pooled resources and from$5,0001000 to statutory limits via group purchased excess insurance policies. 2020-04-21 Agenda Packet, 96 Page 304 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 10—S,elf-Insurance Accrued Liabilities (Continued) Only the probable amounts of loss as estimated by the City's Ri.skManager and Attorney, including an. estimate of incurred-but-not reported losses, have been recorded as liabilities in the accompanying basic financial statements. There were no reductions in insurance from the prior year and there were no insurance settlements that exceeded coverage in,.each.of the past three years. The aggregate change in the balance of claims payab�le as recorded in the Governmental Activities were as follows: Balance Claims and Claims Balance June 30',201.8 Changes inEstimates Payrnents June 30,201.9 2016-2017 $ 22�4681939 $ 812741909 $ (8143 811119) $ 22,305,729 2017-2018 2213051729 610611239 (5114,861,263) 2218801705 2018-20 P9 2218801705 516631568 (4�3O�6�980) 24,12371293, The City determines that $4,000�,000 of the $,24,237,293 to be short term. The liabilities for claims and judgments are typically liquidated from the General Fund. Note I I —Pension Plans A. Califirnia Public Employees'Retire,ment Plans Plan Description All qualified permanent and probationary employees are eligible to participate in the City's Miscellaneous Plan or the City's Safety Plan, both agent multiple-employer defined benefit pension plans administered by the California Public Employees' Retirement System(CalPERS), which acts as a com.1-non investment and administrative agent for its participating Member employers. Benefit provisions under the Plans are established by State statute and City resolution. CaIPERS issues pub�licly available reports that include a full description. of the pension. plans regarding benefit provisions, assumptions,and membership in-flonnation that can be-found on.the CaIPERS website. Ben�fits.Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal. to one year of full. time employment. Members with. five years of total service are eligib,le to retire at age 50 (52 under PEPRA) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2W Death Benefit. The cost of living adjustments for each plan are applied as, specified by the Public Employees' Retirement Law. 2020-04-21 Agenda Packet, 97 Page 305 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I I —Pension Plans (Continued) A Cul�fornia-Public Employees'Retirement Plans(Continued) Ben�flts Provided(Continued) Th.e .Pl.an's provisions and ben.efits in.effect at June 30, 2019, are surn.i.narized as follows: Miscellaneous Plan Tier 1* Tier 2 PEPR A. New Member on or after Prior to April 22,2011 but prior to New Member on or Hire date April 22,20 11 January 1,201.3 after January, 1.,20 1.3 Benefit formula 3%(�) ,,60 2% 60 2% �,62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 50 52 Monthly benefits,as a%,of eligible compensation 2.0%to 3.0% 1.092%to 2.418% 1.0%to 2.5% Required employee contribution rates 8.0% 7.0% 6.75% Required employer contribution rates 31.54,5% 31.545% 12.757% Safety Fire Plan Tier 1* Tier 2 PEPR A New Member on or after April 22,2011 but prior to New Member on or Hire date Prior to April 22,2011 January 1,2013 after January 1,2013 Benefit formula 3%Cy�) 5 0 3%(4�- 55 2.7%Ga) 5 7 Benel'it vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly,for life monthly for life monthly for life Retirement age 50 50 50 Monthly benefits,as a%of eligible compensation 3.00%, 2.4%to 3.0%, 2.0%to 2.7% Required employee contribution rates 9.0% 9.0�% 12.25% Required employer contribution rates 3,5.570% 35.570% 24.095% Safety Police Plan Tier I* Tier 2 PEPRA New Member on or after April 22,2011 but prior to New Member on or Hire date Prior to April 22,2011 January 1,2013 after January 1,2013 Benefit formula 3%Ce� a) 57 ,,,50 3%(4�- 55 2.7%G Benel'it vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly,for life monthly for life monthly for life Retirement age 50 50 50 Monthly benefits,as a%,of eligible compensation 3.00%, 2.4%to 3.0%, 2.0%to 2.7% Required employee contribution rates 9.0% 9.0�% 12.25% Required employer contribution rates 3,5.570% 35.570% 24.095% *Closed to new entrants 2020-04-21 Agenda Packet, 98 Page 306 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I I —Pension Plans (Continued) A.. Cul�fornia-Public Employees'Retirement Plans(Continued) .Employees Covered -At June 30, 20.19,the following employees were covered by the benefit terms of the plans: Miscellaneous Plan Inactive employees or beneficiaries currently receiving benefits 775 Inactive employees entitled,to but not yet receiving benefits 66 Active employees, 603 Total 1�444 Safety Plan Inactive employees or beneficiaries currently receiving benefits 356 Inactive employees entitled to but not yet receiving benefits 117 .Active employees 344 Total 8�17 Contribution Section 20814(c) of the California Public Employees' Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis, by the actuary and s,hall be effective on the July I following notice of a change in the rate. Funding contributions for both Plans are determined annually on an. actuarial. basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with, an. additional. amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. $10�,9�42,,584 and $17,324,929 of contributions for the Miscellaneous and Safety Plan respectively, were recognized as a reduction to the net pension liability for fiscal year ending June 30, 201-9. Net Pension Liability The City's net pension liability for each Plan is measured as the total pension liability, less the pension plan.11 s -fiduciary net position. The net pension liability of the Plans is, measured as of June 30, 2018, us,ing an annual actuarial valuation as of June 30, 2017 rolled forward to June 30, 2018 us,ing standard update procedures.A summary of principal assumptions and methods used to determine the net pension liability is shown below. 2020-04-21 Agenda Packet, 99 Page 307 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I I —Pension Plans (Continued) A.. Cul�fornia Public Employees'Retirement Plans(Continued) Net Pension Liability (Continued) The total. pension liabilities in. the June 30�, 2017 actuarial. valuations were determined using the following actuarial assumptions: Actuarial.Cost Method Entry.Age Normal in.accordance with.the requirements of GAS13 Statement No.68 Actuarial.Assumptions D�isco�unt Rate 7.15% Inflation 2.50% Salary Increases Varies by Entry Age and Service Mortality Rate Table(1) Derived-using CaIPERS'Menibership Data for all Funds Post Retirement Benefit Contract COLA up to 2.0%,until Purchasing Increase Power Protection Allowance Floor on Purchasing Power applies,2.50%thereafter (1)The mortality table used was developed based on CalPERS'specific data.The table includes 15 years of mortality improvements'using Society of Actuaries Scale 90%of scal MP 20�16.For more details on this table,please refer to the December 2017 experience study report(based o�n CalPERS, demographic data from 1997 to 2015)that can be found on the CalPERS webs,ite. Change qf'Assum tions, p In 20�18, demographic assumptions and inflation rate were changed in accordance to the CAPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in the discount rate. In 2017, the discount rate was reduced from 7.,65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to 7.6�5 percent (without a reduction. for pension plan. administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate. -Discount Rate The discount rate used. to measure the total. pension liability was 7.1.5 percent. To determine whether the municipal bond rate should be used in the calculation of the discount rate for each plan, CAPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate.The tests revealed the assets would not run out.Therefore,the current 7.1.5 percent discount rate is appropriate and the use of the municipal. bond rate calculation. is not deemed necessary. The lo�ng-,term expected discount rate of 7.15 percent is applied to all plans in the Public Employees' Retirement Fund (PERF). The cash flows used in, the testing were developed assuming that both members and employers will make their required contributions on. time and as scheduled in all future years. The stress test results are presented in a detailed report called "GAS.B Crossover Testing Rep�ort" that can be obtained at CaIPERS website under the GAS13 68 section.. 2020-04-21 Agenda Packet, 100 Page 308 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I I —Pension Plans (Continued) A.. Cul�fornia-Public Employees'Retirement Plans(Continued) Discount Rate(Continued) The long-ten-n expected rate of return. o�n. pensio�n. plan investments was determined u.s.mg a bui Iding-b lock method in which expected future real rates of return (expected returns, net of pension plan.investment expense and inflation.) are developed for each.major asset class. In determining the long-term, expected rate of return, staff took into account both short-term and long-term market return expectations as,well as the expected p�ension fund (13ERF) cash flows. Taking into account historical returns of all. the Public Employees Retirement Funds' asset classes (which includes, the agent plan and two cost-sharing plans or PERF A, 13, and C funds), expected compound (geometric) retums were calculated over the short-term (first 10 years) and the long-term (l 1.-60 years) using a building-block.app�ro�ach. Using the expected nominal returns,fo�r both. short-term and long-�term., the present value of benefits was, calculated -for each PERF fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as, the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. The table below reflects long-term. expected real. rate of return.by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. New Strategic Real Return'Years Real Return. Asset Class Allocation I -10 (1)� Years 11+(2) Global Equity 50.00�% 4.80�% 5.98�% Global Fixed Income 28.00 1.00 2.62 Inflation Sensitive 0.00 0.77 1.81 Private Equity 8.00 6.30 7.23 Real Estate 13.00 3.75 4.93 Liquidity 1.00 0.00 (0.92) (1) An expected inflation of 2.00% used for this period. (2) An expected inflation of 2.92% used for this period. 2020-04-21 Agenda Packet, 101 Page 309 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I I —Pension Plans (Continued) A Cul�fornia-Public Employees'Retirement Plans(Continued) Changes in the NetPension Liability Th.e.following tabl.e shows the changes in,.net pension.liability recognized over the measurein. enl perio�d. Miscelleaneous Plan Increase(Decrease) Total.Pension Plan Fiduciary Net Pension, Liability Net Position Liability/(Assets) (a) (b), (c)=(a)-(b) Balance at:6/30/2017(Valuation Date) $ 514212361884 $ 35415311046 $ 18717051838 Changes Recognized for the Measurement Period: Service Cost 91048 165 - 048 165 11 91 1 Interest on the Total Pension Liab.1fity 3713051907 - 37�305�907 Difference between Expected and Actual Experience (8,223,685) - (8,223,685) Changes of Assumptions (41314�060) - (4�314�060) Plan to Plan Resource Movement - (874) 874 Contribution froin the Employer - 1.414 7 910 6 9 (14,479,069) Contributions'from Employees - 303i297 (3�,603,297) Net Investment Income - 3010321849 (30,032,849) Benefit Payinents including Refunds of Employee Contributions (24,924,595) (241,9241,595) - Administrative Expense (552,457) 552,1457 Other M.1scellaneous Income/(Expertse)l . .........................(1,0491125) 1 M49J 25 N e t Change s During 2 0 17-18 81891,732 21,588,164 (12�696�432) Balance at: 6/3,0/2018('Measurement Date) $ 55111281616 $ 37691199210 $ 1751,0�091,406 ----------------------------------------------------------------------------------------------------------------------------------------------- Safety Plan .Increase�Dccrease)............ Total Pension Plan'Fiduciary Net Pension I iability Net Position Liabi li.ty/(As sets) (a) (b) (c)=(a)-(b) Balance at:6/30/2017(Valuation Date) $ 493.1338.1275 $ 3�46.1176.10�34 $ 147.11621241 Changes Recogniized for the Measurement Period: Service Co,st 121044�725 - 121,P44�725 Interest on the Total Pension Liability 34175 1,830 - 3 4�7 5.1.�8 3 0 Difference between Expected and Actual Experience (307,813) - (307,813) Changes of Assumptions (21,112�530) - (2j 12,530�) Plan to Plan Resource Movement - (858) 858 Contribution from the Employer - 1 3�.1 5 2 9.12 9 0 (1 3�,529,290�) Contributions from Employees, - 3,804,814, (3,804,814) Net Investment Income - 29�258J 2 1. (2 9,2 5 8 J 2.1. Benefit Payments,including Refunds of Employee Contributions, (21,801,437) (21,801,437) - Administrative Expense (539,438) 539�438 1 O�24 401 Other Miscellaneous Income/(Expense) - (1,024,40_1 Net Changes During 2017-18 22,574,775 23,226,091 (6511316) Balance at:6/30/20 18(Measurement Date) $ 51519131050 $ 369,4021125 $ 1469,510�2925 2020-04-21 Agenda Packet, 102 Page 310 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I I —Pension Plans (Continued) A.. Cul�fornia-Public Employees'Retirement Plans(Continued) 1 During Measurement Year 2017-18, as a result of Governmental Accounting Standards Board Statement (GAS13) No. 75, Accounting and Financial Reporting for P�ostemplo�yment Benefit Plans Other than. Pensions (G.A.S.13 75), Cal-PERS, reported its proportionate share of activity related to postemployrnent benefits for participation in the State of Cali-fornia's agent OPEB plan. Accordingly, Ca1PERS recorded a one-time expense as,a result of the adoption of GASB 75. Sensitivity qfthe Net Pension Liability to Changes in the Discount Rates The following presents the net pension,. liability of the Plans as of the measurement date, calculated using the discount rate of 7.15 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is I percentage-point lower (6.15 percent) or I percentage-point higher(8.15 percent)than.the current rate: Discount Rate- 1% Current Discount Rate DiscountRate (6�.15%) (7.15%) (8�.15%) Miscellaneous P Ian $ 248,132,854 175,009,406 $ 114,533,687 Safety P Ian 2211242�926 146.151019,25 85104.1�409 TOTAL, 4691375J80 $ 32115201331 $ 2001138�1096 Pension Plan Fiduciary Net Position Detailed. information about the plans' fiduciary net position. is available in. the separately issued CalPERS financial reports. See CAPERS website for additional information. Pension Expense and D�ferred Outflows and D�ferred Inflows qf Resources Related to Pensions For the year ended June 30, 201.9, the City of Chula Vi,sta incurred a pension experise of$18,566,544 and $26,594,625 for the Miscellaneous and Safety Plans, respectively, for a total pension expense of $45�16 1.�169. At June 3 0, 2019, the City of Chula Vista has deferred outflows and,deferred inflows of resources related to pensions as -fo�llows: Deferred Outflo'"s of Deferred InfloN",of Resources Resources Miscellaneous Plan Pension contributions Subsequent to ineasurement date 12,333�,078 $ - Difference between Expected and ACtUal Esq)erience - 6,521,833 Changes of Assumptions 7,083,188 2,654,80�6 Net Diff�rence between Projected and Actual Earnings on Pension Plan Investments 255,131 - Total 19,671,397 9,17 6,6 3 9 Safety Plan Pension contributions subsequent to measurement date 19,585,859 - Difference between F,,xpcctcd and Actual ENperience 374,661 960,015 Changes of Assumptions 17,396,072 2,974,749 Net Difference between Projected and Actual Earnings on Peiision Plan Investments 760,553 - Total 38,117,145 3,9�34,764 'Yotal All Plans $ 57,788,542 $ 13,111,403 2020-04-21 Agenda Packet, 103 Page 311 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note I I —Pension Plans (Continued) A.. Cul�fornia-Public Employees'Retirement Plans(Continued) The $12.,333,078 and $19,5851859 for the Miscellaneous and. Safety Plan, respectively, reported as deferred outflows of resources related to contrib�utions subsequent to the measurement date will be recognized as a reduction. of the net pension. liability in,.the year ended,June 30�, 2020�. Other amounts reported as deferred out-flows or deferred inflows of resources related to pensions will be recognized as pension expense as fo�llows: Miscellaneous Plan Safety P Ian Total Measurement Period ended June 30: D�eferred Outflowsfflnflows)of.Res,ources, 2019 $ 5�066�51 79 $ 8�5315917 $ 135598�O9�6 2020 (2,093,494) 61322�571 4�2291077 2021 (3�796�889�) IM9 I�9 10 (2�704,9791) 2022 (1,014,116) (1,349,876) (2,3 6 3,9 9 2) B. Dqfined ContributionPensionPlan The City provides pension plan benefits for all of its part-time hourly employees through a defined contribution plan (Public Agency Retirement Plan). In a defined contribution plan, benefits depend solely on. amounts contributed to the plan plus investment earnings. The plan,. is administered by Public Agency Retirement Services (PARS). All part-time employees are eligible to participate from the date of employment. Federal legislation requires,contributions of at least 7.5%to a retirement p�lan, and City Council resolved to match, the employees' contributions of 3.75%. The City's contributions for each.employee(and interest earned by the accounts) are fully vested immediately. The authority to establish or amend the plan's provisions resides,with City Council. For the year ended June 30, 2019, the City's total hourly payroll (for eligible PARS members) and covered payroll was$2,667,896. The City made employer contributions of$100,046(3.75%of current covered payroll), and employees contributed$100,046 (3.75%of current covered payroll). C Deferred Compensation 457B Plan The City offers to its employees an optio�nal deferred compensation plan created in. accordance with Section 457 of the Internal Revenue Code. This plan is available to substantially all employees and allows participants to defer a portion of their current income until future years, up to a maximum of $18.,500 (in. whole dollars) per calendar year, so as, to shelter such. funds and earnings from state and federal taxation until withdrawal. The deferred compensation is not available to participants until termination, retirement, death, or unforeseeable emergency. This plan is administered through a third-party administrator. The City does not perform the investing function and has no fiduciary accountability for the plan. Thus, plan assets and any related liability to plan participants have been excluded from the City's financial statements. At June 30, 2019, the balance in the plan was $9711161370. 2020-04-21 Agenda Packet, 104 Page 312 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 12—Post Retirement Health Benefits PlanDescription The City provides,a Retiree Healthcare Plan, a single employer defined benefit plan,which allows eligible retirees to purchase healthcare coverage under the City's medical plan.Retirees pay 100%of the premiums. Retirees not eligible -,for Medicare pay the same healthcare premiums as active employees, even though. retiree's healthcare costs are greater than that of active employees. This results in an implied subsidy of retiree's healthcare costs by the City. In. fiscal year 2012, the City, entered into an. agreernent with. various bargaining groups eliminating the subsidized retiree health care rates -for employees hired. under the Second Tier CalPERS Retirement Plan.The City subsequently established a third tier for employee benefits —employees hired in this tier are not eligible for this,benefit. The postemployinent benefit is a single-employer plan. The plan has not been audited and.therefore, there is no audited GAAP-b�as,is postemployment benefit plan report available. Employees Covered Tier I employees are eligible for retiree health benefits if they retire from the City on or after age 50(unless disabled)and are eligible for P-ERS pension. The benefits are available only to employees who retired from the City. Membership of the plan consisted of the following at June 3�0, 20�17, the valuation date: Active 614 Inactive employees or beneficiaries,currently receiving benefits, 228 Inactive employees entitled to,but not yet receiving benefits 0 8 4 2 The information above does not reflect eligible retirees that are in the process of enro�lling in the healthcare plan.. Contributions The City offers an implied subsidy benefit paid from the City's general fund. The City's contribution is based on pay-as-you-go. Tier I retirees pay 100%,of their individual (subsidized)premium. Retirees under Tier 2 and Tier 3 will pay 100% of the unsubsidized(unblended)health care premiums. 2020-04-21 Agenda Packet, 105 Page 313 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 12—Post Retirement Health Benefits, (Continued) Total OPEBLi-ability The City's total OPEB liability was measured as of June 30, 2019 and was determined by an actuarial valuation.dated June 30�, 2017 that was used to determine the June 3�0, 2019 total 013EB liability, based on the following actuarial methods and assumptions: Actuarial Co,st Method Entry Age Normal Actuarial Assumptions Contribution-policy No pre-funding. DiscountRate 3.13�% Inflation 2.50�% Salary Increases 2.75% Merit-CAPERS 1.9�97-2015 Experience Study Healthcare cost trend,rates 6.50%in first year,trending down to 5.39%over 56 years Mortality,Rate Mortality Rate projected fully generational with Scale MP-17. Mortality, Retirement,Disability, CAPERS 1997-2015 Experience Study. Terminations Notes: (1) .Pre-retirement mortality information was derived from data collected during 1997 to 2015 CalPERS Experience Study dated. December 2017 and post-retirement mortality in-formation was derived. from. the 200�7 to 2011 CaIP,ERS Experience Study. The Experience Study Reports may be accessed on the CalPERS website www.calpers.ca.gov under Forms,and.publ i cations. (2) The pre-retirement turnover information was developed based on CalPER,S' specific data. For more details, please refer to the 2007 to 2011 Experience Study Report. The Experience Study Report may be accessed on,.the Cal-PERS website www.cal-pers.ca.gov underForms, and Publication.s. D�iscount Rate The discount rate used to measure the total.0.13EB liability was 3.13, percent. The projection.of cash.flows used to determine the discount rate assumed. that City contributions will be made at rates equal to the actuarially determined contribution rates. The City does not participate in a trust fiduciary fund. 2020-04-21 Agenda Packet, 106 Page 314 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 12—Post Retirement Health Benefits, (Continued) Changes in the Total OPE.B.Liability The changes in the Total OPEB Liability for the Plan are as follows: in creas,e('.Decreas e) Total OPEB Liability Balance at June 30�,2018 $ 1416991539 Changes recognized over the meas-urement period: Service Cost 8191100 Interest 549109 Changes of assumptions, 504.�190 Implicit rate subsidy fulfilled (634,315) Net Changes 112381,674 Balance at June 30�,2019 $ 15,938�213 Sensitivity qf the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City if it were calculatedusing a discount rate that is one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30, 2019: Current I%Decrease Discount Rate 1%Increase (2.13%) (3.1.3%) (4.13%) Total.OPEB.Liability 17,2731795 1.51938121.3 $ 1.4 55.111.1803 Sensitivity ofthe Total OPEB Liability to Changes in the Health Care Cost Trend Rates The following presents the Total.OPEB liability of the City if it were calculatedusing health.care cost trend rates that are one percentage point lower or one percentage point higher than the current rate, for measurement period ended June 30�, 20�19: Current Healthcare Cost 1.%Decrease 'rrent Rates 1.%,Increase Total OPEB,Liability $ 141088�849 15i938i213, $ 17�923415 2020-04-21 Agenda Packet, 107 Page 315 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 12—Post Refirement Health Benefits, (Continued) OPEB-Expense and Deferred OuylowslInflows of Resources.Related to OPEB For the fiscal year ended June 30�, 2019, the City recognized OPEB expense of$1,348,780. As of fiscal year ended June 30, 2019, the City reported deferred outflows of resources related to O.PEB, from the following sources: Deferred Outflows Deferred Inflows of Resources, of Resources Differences between actual and expected experience $ 1.331,14,5 $ Changes of assumptions 431.11,18 $ 564�263 $ Amounts reported as deferred outflows,or deferred inflows of resources related to OPEB will be recognized as O.PEB, expense as follows: Deferred Fiscal Year Outtlo,"N/(Inflo'"s)of ended June 3 0: Resources 20�20 $ 1001244 20�21 100, ')244 20�22 1001244 20�23 1,001)244 20�24 97�529 Thereafter 65,758 $ 5641263 2020-04-21 Agenda Packet, 108 Page 316 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 13—Commitments and Contingencies Litigation The City is presently involved in certain matters of litigation that have risen in the normal course of conducting City,business. City management believes,based upon consultation with the City Attorney, that these cases, in.the aggregate, are not expected to result in, a material adverse -financial. impact on.the City. Additionally, City management believes that the City's insurance programs are sufficient to cover any potential,.losses should an.unfavorable:outcome materialize. Grants The City, participates in. a number of federally assisted grant programs, including those from. the U.S. Department of Housing and Urban Development, U".S. Department of Justice, U".S. Department of Treasury, U.S. Department of Transportation, and the U.S. Department of Education. Receipts from these grant programs are subject to audit to determine if the monies were expended in accordance with.appropriate statues', grant terms and regulations. The City believes no significant liab,ilities will result on this audit. Construction Commitments The following material construction commitments existed at June 30, 2019: Expenditures, Contract to date as of Remaining Project Name Amount June 301 201.9 Commitments Street Pavement Rehabilitation-Measure P $ 10.�379�9,18 $ 41�523��355 $ 5.11856�56�3 Encumbrances At June 30, 2019, there were encumbrances of$22,998,244 in the General Fund, $1 80�7,465 in the Sundry Grants Fund, $84,546 in the Housing Successor Agency, $456,165 in the Development Impact Fee Fund, $765,114 in the Sewer Fund,$209�,853 in the Development Services Fund,and$7,983,24�6 in the non-major funds. City Loan to Successor Agency, The General Fund has loaned a cumulative amount of $9,885,,147 including interest to the Successor Agency for unreimbursed services renderedby City staff. It is anticipated that the Agency will repay this loan from Redevelopment Property Tax Trust Fund distributions. Currently, Redevelopment Property Tax Trust Fund distributions are used to pay for related debt service expenditures and possible future debt issuance. As a result, the Successor Agency is uncertain if the amount will be repaid to the City's General,.Fund.-Accordingly,this contingent payable has not been.reported in.the accompanying basic -financial statements. The Agency will record the contingent payable when payment is assured. 2020-04-21 Agenda Packet, 109 Page 317 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 13-Commitments and Contingencies (Continued) Successor Agency-Long Range Proj)erty Management Plan The City, acting as the Successor Agency to the Chula Vista Redevelopment Agency, prepared a Long Range Property Management Plan (LRPMP) in compliance with AB 1484. The Successor Agency Oversight Board reviewed and approved,theLRPMP on. May 1.2, 2014, and submitted it to the Cal.ifornia, Department offinance for review on May 27, 2014. The Department of Finance approved the LRPMP in their July 15, 2014, determination letter. Note 14-Class iffication of Fund Balances Major Funds Sundry Grants Housing M unicipal Other ceneral Special Revenue Successor Agency Development Public Financing Financing Governmental Fund Fund Fund I impact Fund Authority Authority Funds To tal Nonspendable Prepaid iterns S 211,005 $ 4,277 $ S $ 215,282 Due frorn Successor Agency OITIIUI�l Vista RDA 5,83,8,33,3 - 5,8,38,33,3 Advances to other funds 1,528,748 - 1,529,749 ........................................................................................................ Total nonspendable 7,578,,086 4,277 7,582,363 llestficted SLESF-Local law enforcement - 556,83�5 556,835 Police grants - 491,458 491,458 Fire training technical rescue - 6,931 6,831 Asset forfeiture - 5,903,720 5,903,720 Library set-vices - 23,974 23,974 11OMF Program - 1.046,278 1.046,278 Energy conservation - (518,554) 39,518 (479,036) Cultural arts - 12,279 - 12,279 CDBG I lotile Programs - 3 85,9 16 - - 385,916 Environmental services - 1,427,785 - - 1,427,785 Waste management,recycling and environ,grants. - 240,956 - - 240,956 Communityand 110LISing developtaient - 308,,(A3 12,809,,533 - 56,9,482 13,087,058 Arnerican Recovery and Rciimstmeni Act 2009 159,99,7 - - l 59,997 PUblic facilities - (102,776) - 11,448,3�71 11,345,595 Enicr�gency shelter - 2,965 - - - - - 2,965 Transportation hitprovenients - - - 32,002,514 - - 17,296,522 49,299,036 Telegraph Cauyon drainage - - - 3,986,151 - - - 3,986,l 51 East Urban Cener tilillenia Ped Bridge D11; - - - 5,563,316, - - 36,254,725 41,818,041 Parking meter services - - - - - - 3,263,085 3,263,085 Tra ffic signal and sal'cty - - - 2,022,277 - - 233,948 2,256,225 Storni drain - - - - - - 985,419 985,419 Open space mainteriance - - - - - - 28,980,287 28,980,287 Teleconi Utility Tax - - - - - - 99,898 99,898 Mobilchonic Admill[,'cc - - - - - - 212,685 212,685 Assessment districts improvement - - - - - - 1,099,101 1 p9s,I()�I Town Center I - - - - - - 55,044 55,044 OR V2 I'Lib Beriefit ContribUti011 - - - - - - 374,764 374,764 ,l'otal restricted - 9945.707 l 2,809,5 3 3 55,022,629 - - 89,463,478 l 67,24 1,347 Committed Ecortionic contingency 7,283,745 - - - - - 7�83,745 C.apltal projects 3,9,087,009 - - - - - 39J)87,009 Debt service - - - - 5,218,407 1,322 - 5,219,729 Total committed 46,370,754 - - - 5,218A07 1,322 - 51,590,483 As s igne d ("4 Council 81 - - - - - - 81 C',ily Clerk 44,990 - - - - - - 44,990 City Attorney 91,142 - - - - - - 91,142 Cily Administration 2 l,0010 - - - - - - 2 1,00�O Information Technology Services Department 162,413 - - - - - - 162,413 I lurnaii Resources 149,898 - - - - - - l49,898 l'inatice Department 145,489 145,489 Non-I)epartmental 5,795,021 - 5�79�5,021 Aninial Care Services �5,892 - - 15,892 Engieering 10,395 10,395 Police Department 75,912 - - - - - - 75,912 Fire Department 40,474 - - - - - - 40,474 Public Works Dcpa rt tile lit 35,846 - - - - - - 35,846 Recreation Department 14,297 - - - - - - 14,297 Endowncills - - - - 64,20�2 64,202 Measure A Sales Tax 113 O�3,2 10 - 11�103,21 0 Public liabiliiy 573,157 573J57 Measure 1)Sales Tax 23,067,521 23,067,521 Total assigned 41,540,738 (A,202 41�6 10,940 Unassigned 23,378,85�9 - - - - (2,147,(43) 212 31,2�6 To(al fund balances S 118,874,437 9,949,984 $ 12,809,533 55,022,029 S 5,218,407 S 1,322 $ 87,380,037 $ 289,256,349 ......................................................................................................... 2020-04-21 Agenda Packet 110 Page 318 of 421 CITY OF CHULA VISTA NOTES TO BASIC FINANCIAL STATEMENTS(CONTINUED) YEAR ENDED JUNE 30,2019 Note 15—Prior Period Adjustments The City recorded prior period adjustments of fund balances and net position. during the current year due to the following: Sundiy Grants - The City corrected revenue recogni.zed in. the prior year causing a total. restatement of $505,1949. Development Impact Funds — The City corrected revenue recognized in, the prior year causing a total. restatement of$394,643. Note 1.6—Subsequent Events Chula Vista Bay firont Facilities Financing Authority The Chula Vista Bayfront Facilifies Financing Authority (the "Authority") has convened four times since Jurte 30, 2019. At those meetings, the Authority: adopted bylaws; confirmed officers of the Authority; elected a Chair and Vice Chair; established time and place for regular meetin s; adopted conflict of interest 1 9 i codes; authorized an application for Statewide park Development and Community Revitalization Program grant funds.;approved a funding agreement between.the County of San Diego,the Authority,the San Diego Unified Port District, and the City; adopted a procurement policy; adopted a resolution ap�p�lying the procurement policy to a specific project,- and adopted a reimbursement resolution for the tax exempt obligati.ons, the Authority intends to issue. During the same period, the City initiated, and completed formation proceedings for the Bayfront Project Special Tax Financing District (the "Bayfrorit District"), with a resolution of intention approved on September 10�, 2019 and a special mail ballot election held on "February 1.8, 2020�. The formation. of the d,i.stri,ct was approved unanirnously by the participating landowners, and an ordinance authorizing the levy of a special tax in. the Bayfront District was approved on February 25, 2020. COVID-.19.Pandemic In December 2019, an outbreak of a novel strain of coronavirus, (COVID-19) originated in China, and has since spread to a number of other countries, including the U.S. On. March 11, 2020, the World Health, Organization characterized COVID-19 as a pandemic. -in. addition, several states in the U.S., including California, have declared a state of emergency. .Potential impacts to our future tax revenues include disruptions or restrictions on our current employees,' ability to work-.Any of the foregoing could negatively impact our revenues and we currently can't anticipate all of the ways in which this health epidemic, COVID-19, co�uld,adversely impact our government agency. Although we are continuing to monitor arid assess the effects of the COVID-19 panderrii,c on. our government agency, the ultimate impact ofthe COVID�-19, outbreak or a similar health epidemic is highly uncertain and subject to change. 2020-04-21 Agenda Packet, Page 319 of 421 2020-04-21 Agenda Packet, 112 Page 320 of 421 =I ` KLQUIRED SUPPLEMENT,ARY INFORMATION 2020-04-21 Agenda Packet 113 Page 321 of 421 2020-04-21 Agenda Packet, 114 Page 322 of 421 CIrlry OF CHULA VISTA BUDGE r FARY COMPARISON SCHEDULE BY DEPAR rrMENT GEN ER.AL FUND FOI1 THE FISCAL YEAR ENDED JUN E 30 2019 WE Variance with Final Budget Budget Amounts Actual Positive Priginal Final --------- Amounts, (Negative) Budgetary Fund Balance,July 1 $I 08�203,516 $108,2031516 $ lW203,516 $ Resources(.Inflows): Taxes 134�138,,314 153,411,411 154�495,385 110�83�9�74 .Licenses and permits 1.1608fi32 2J.48J32 2.�33705 188,953 Intergovernmental 3�395,653 3�4699792 3,585,674 115,882 Charges for services 5.�714�569 5�764�569 6,149M75 384,1506 Use of money and property 2�953,166 21953�166 5,,735,304 2'1782�138 Fines and forfeitures 1.�241�423 1�24 1.A23 1,464�302 222,1879 Contributions 1�556,923 11924�141 6981921 (1,225,220) .Developer participation 1.104904 1 M49fi64 1,507�73�8 458,1074 Miscellaneous 1 M27,289 12,1875M62 121149,569 ('725i493) Transfers in 33.1063fi59 49�245190�2 1019561957 (3�8,288,945) Capital leases - - 7591,07 759,69�7 Amounts Available for Appropriations 303,652,808 3429286,778 308,043,223 (34�2431555) Charges to Appropriation(Outflow): Current City council 11623i371 1 fi261561 11)5001786 1251775 City clerk 9�84,860 1 IM48�694 995,590 5 3'.�104 City attorney 2195 1 M75 3�2081389 21)5921388 6161001 Administration 2�157,014 21'�216M56 2,035,972 180�,084 Information technology 3.1630M77 3MO1194 31)4101775 4291419 1 luman resources 2,588,838 211899�632 212781068 621,564 Finance 5.13631�923 12�43116�50, 411893!947 715371703 Non-departmental 1,59�3,332 611878�564 4,600,378 2�278,186 Board and cornmissions 27i370 27.1783 101453 171)330 Police 56,518,969 581�427,861 56,915,187 1,512,674 Fire 31,11181,713 37!494�767 3410881)281 3A6.1486 Animal carefacility 2,942,8,23 211976�306 21�939,951 36,355 Community development Economic development 2f)125,758 2�136,750 21.�169,274 (32,524) Development services 21899�,596 219001096 2i585fi95 3141401 Parks and recreation Parks and recreation 10,9�13,212 1 L335M51 11.12081237 1261814 Public works Public works 8.1491109 12M261492 7,576,105 4�450.1387 Engineering 11,959,687 8,729,142 11 15141�900 (2,785,758) Library Library 41092�746 4,18�2,419 3191 0�273 2721�146 Capital outlay 7,912,919 70M 131034 211,163,706 4818491328 Debt service: Principal retirement 5,988,73�8 519731239 5,744,050 2291189 Interest and t"iscal charges 2�96800 21'�968�388 21�8551�72 1, 112667 Transfers out 5,722,564 5,776,715 4i 1 79�,049 11597,66�6 Total Charges to Appropriations 17415751454 259,117J83 1891168J86 69,948�997 Budgetary Fund Balance,June 30 $129,077,354 831168,995 118,874�1437 $ 351,70554�4�2 See NV�@s0t4j�eqjttrS&FpWpkrnentary Information 115 Page 323 of 421 CIrlry OF CHULA VISTA BUDGE r FARY COMPARISON SCHEDULE BY DEPAR rrMENT SUNDRY GRANTS FOI1 THE FISCAL YEAR ENDED JUN E 30 2019 WE Variance with Final Budget Budget Amounts Actual Positive -Original......... Final Amounts, (Negative) Budgetary Fund Balance,July 1,as restated $ 410�71 02 $ 4,071,682 4M71 02 $ Resources(Inflows)�: Intergovernmental 71�926'1957 9i,458,795 4140�7�695 (5i'051'.Joo) Charges for services 1 1402,1575 1 i,557,095 11445�488 (111,607) Use of money and property 113 M00 11311000 1 O�7,209 (5,7 9 1 Contributions 71 '�947'1528 9i,008,017 14545,737 5 537,720 Miscellaneous 254�485 20211059 253,775 511716 Transfers ill 165�305 171 11884 115,731 (56,153) Amounts Available for Appropriations 21,881,532 24,582,532 24�947,317 364J85 Charges to Appropriation(Outflow): General.government Finance - 1721547 191989 152�558, Public safety Police 7ikWl 167 916771)292 7�270.1505 2.1406i387 Fire 3751163 1 1000M)926 2841177 716�749 Anitnal care facility - 2000 151649 41351 Community development Economic development 31994.1121 41280M)53�5 2fi43.1294 11637i241 Development services 2�718.1645 71751�5 10 112531011 6.1499iA99 Public works Public works - 53�335 - 53�335 Engineering 111787!970 - 11787i970 LJ b�rary I,Jbrary 80fi56 371881 42�775 Capital Outlay 2i5811209 - 1116841465 (1.1684iA65) Transfers Out I i�7 8916 12 1.1808M)O 13 1�788.1362 1051 To�tal Charges to Appropriations 195061�917 26,633,784 141997�333 11,6369451 Budgetary Fund Balance,June 30 $ 2�8191615 $ (21051�252) 9�9491984 $ 12,001,236 See NV�@s0t4j�eqjttrS&FpWpkrnentary Information 116 Page 324 of 421 CIrlry OF CHULA VISTA BUDGE r I"ARY COMPARISON SCHEDULE BY DEPAR rrMENT HOUSING SUCCESSOR AGENCY FOI1 THE FISCAL YEAR ENDED JUN E 30 2019 WE Variance with Final Budget Budget Amounts Actual Positive -Original.......... Final Amounts, (Negative) Budgetary Fund Balance,July 1 $ 10'�321�276 $ K321i276 $ 1013219276 $ - Resources(.1nflows): Use of money and property 21500 215M00 834i567 619�567 Miscellaneous 25500 25500 L658.1913 L403M3 Amounts Available for Appropriations 109791,276 10,791,276 1.2�81.417-56 2,0239480 Charges to Appropriation(Outflow): Current Development services 4�1.08�19737 4'1109�160 5.�223 41103�937 Total Charges to Appropriations 4J081737 411091160 -5,1223 41103�937 Budgetary Fund Balance,June 30, $ 6�682,539 $ 61682,1116 $ 12,809,533 $ 611271417 See NV�@s0t4j�eqjttrS&FpWpkmentary Information 117 Page 325 of 421 CITY OF CHULA VISTA MISCELLANEOUS PLAN SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30,FOR,THE 1,ASTTEN FISCA1,YEARS(I) 201.5 2�016 2�017 201,8 201,9 ToTAI,PENSION 1,,IAB1LiTY Service Cost $ 8,696,183 $ 8,570,421 $ 8,451,918 9,370,8,65 9,048,165 Interest 32,359,841 34,103,210 35,618�,575 36,639,99�7 37,305,907 Difference Between expected and Actual Experience - 925,96,0 995) (6,331,454) (2,524, (8,223,685) Changes in Assumptions (8,500,698) - 30,69�3,812 (4,314,060) Benefit Payments,Including Refunds of employee Contributions (18,,639,387) (19,539,333) (21,022,078) (23,072,106) (24,924,595) Net Change inTotal Pension 1.1ability 22�416�637 15,5591560 20,5231,420 47,3�O 1 It 14 8,891,732 Total Pension Liability-Beginning 436,436,153 458,852,790 474,412,350 494,935,770 542,236,884 Total Pension I-Jabilify-Ending(a) 45�8,85�2�,790 474,412,350 494,935,770 542,2�36,�884 551,118,616 PLAN FIDUCIARY NET POSITION Contribution-Employer 9,134,182 13,499,144 12,461,946 13,663,149 14,479,069 Contribution-Employee 4,555,300 3,679,749 3,764,641 3,536,418, 3,603,29�7 Plan to Plan,Resource Movement - 5,268 - - (874) Net Investn-tent Income 48,,303,496 7,19�5,063 1,747,676 36,763,992 30,032,849 Benefit Payments,Including Refunds of Employee Contributions (18,639,387) (19,539,333) (21,022,078) (23,072,106) (24,924,595) Administrative Expense (199,512) (479,539) (552,457) Other Miscellaneous Income/(Expense) - (1,0491125) Net Change in Fiduciary Net Position 4�3,353,591 4,471,19�7 (3,24�7,327) 30,412,914 21,588,164 Plan Fiduciary Net Position-Beginning 279,540,671 322,894,262 327,365,45�9 3241118,132 3541531,046 Plan Fiduciary Net Position-Ending(b�) 322,894,26T 327,365,459 3�24,118,132 354,531,046 376,119,210 Plan Net Pension 1,i a b�ility/(As sets)-Ending(a)-(b) $ 135,95�8,528 $ 147,046,89 1, $ 170,817,638 $ 1871705,838 $ 1751009,406 Plan Fiduciary Net Position as a Percentage of the Total Pension I...,iability 70.37% 69.00% 65.49% 65.380/Ao 68.25% Covered Payroll $ 42,76�0,249 $ 4�4,135,521 $ 45,990,463 $ 44,435,640 $ 44,578,3�40 Plan Net Pension a hility/(As set)as a Percentage of Covered Payroll 317.96% 333.17% 371.42% 422.420/Ao 392.59% (I)I listo�rical information i,s required only for measurement for which GASB 68 is applicable.Fiscal Year 2015 was the first year of implementation,therefore only five years are shown. Notes to Schedule: Benefit ChanM:The figures above do not include any liability impact that may have resulted 1�om plan changes which occurred aller the June 30,2017 valuation date."rhis applies for voluntary benel'it changes as well as any offers of"'I'wo,Years Additional Service Credit(a.k.a.Golden riandshakes). Changes of Assumptions:In 2018,demographic assumptions and inflation rate were changed in accordance to the CAPERS Experience Study and Review ofActuarial Assurnptions December 2017.There were no changes in the discount rate.In 2017,the discount rate was reduced frorn 7.65 percent to 7.15 percent.In 20,16,there were no changes.In 2015,amounts reported reflect an adjustment of the discount rate from 7.5 percent(net of administrative expense)to 7.65 percent(without a reduction for pension plan administrative expense.)In 2014, amounts reported were based on the 7.5 percent discount rate. See?j"j@-M*2qujXg4M;VQig",ary Information 118 Page 326 of 421 CITY OF CHULA VISTA MISCELLANEOUS PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OF JUNE 30,FOR,THE 1,ASTTEN FISCA1,YEARS(I) 2015 2�016 2017 2018 2019 Actuarially Determined Contribution $ 9,637,382 S 10,214,678 $ 10,86�4,20�3 S 10,9�42,,58,4 S 12,,333,,078 Contribution in R.elatlon to the Actuarially Determined Contribution (9,637,382) (10,,214,678). (10,864,203) (10,942,584) (12,333�,,078). Contribution Deficlency(Excess) $ - $ - $ - $ - $ ............................ Covered Payroll $ 44�135,521 S 45,990,463 $ 441435,640 $ 44,578,,340 $ 45,,798,,549 Contributions as a Percentage of Covered Payroll 21.84% 22,21% 24,45% 24.55%, 26�93% (1)1 listorical information is required only for measurement fior which GAS13 68 is applicable.FY 2014/15 was the first year of implementation,therefiore only five years are shown. Note to Schedule: Valuation Date: June 301,20�16 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal cost method Amortization method/period L.,evel percentage of payroll,closed Inflation 2.75% Salary Increases 3.20%to 12.20�% Investment rate of return 7.50%net of pension investment and administrative expenses,including inflation. Retirement age J'he probabilities of Retirement are based on the 2014 CalPERS Experience Study ft)r the period ftorn 1997 to 2011� Mortality IZP-2000 Health Annuitant Mortality Tab�le See 7j"j@-M*2qujXg4§&VQig",ary Information 119 Page 327 of 421 CITY OF CHULA VISTA SAFETY PLAN SCHEDULE OF CHANGES IN NETPENSION IAABu.,xrY AND RELATED RATIOS AS OFJUNE 30,FOR THE LAST TEN FISCAL YEARS(1) MEASUREMENT PERIOD 20�15 2016 2017 2018 2019 TOTAL PENSION LIABILITY Service Cost $ 10,220,233 $ 9,646,80�6 $ 9�971�492 $ 11,5 9�4,9 5 9 $ 12,044,,725 Interest 28,,334,46,5 29�9791452 31,658,,073 33,213,616 34,751,,830 Difference Between expected and Actual Experience 460,215 768,421 (1,210,352) (30�7,813) Changes in Assumptions (7,8,13,96�9) - 29,39�3,364 (2�'112,530) Benefit Payments,Including Refunds of erriployee Contributions (15,869,862) (1 7J671853, (19,460,670') (20,397,814) (21,801,437) Net Change in Total Pension Liability 22,684,836 14,504,651 22,937,316 52,593,773 22,574,775 Total Pension Liability-Beginning 38,0,617,69�9 403,302,,535 417,807,18,6 440,744,502 493,338,275 Total Pension Liability-Ending(a) 403�,,3�02,,535 417,807,186 440,74�4,50�2 493,338,275 515,913,050 PLAN FIDUCIARY NET POSITION Contribution-Ernployer 11,684,174 7,555,357 10,971,712 11,670,017 13,529,290 Contribution-Employee 3,157,921 3,230,989 3,420,273 3�,620,014 3,804,814 Net Investment Incorne 47,649,285 6,99�9,744 1,664,170 35,554,749 29i258J21 Benefit Payments,Including Refunds of Employee Contributions (I 5,86�9,86�2) (17,767,853) (1 9�460,670) (20,397,814) (21,801,437) Administrative Expense (359,830) (1 9�4,899) (466,8,42) (539,438) Net Plan to Plan Resource Movernent (858) Other Miscellaneous Income/(Expense) . ......... (I M24,40 I') Net Change in Fiduciary Net Po�sitio�n 4�6,621,518 (3�41,593) (3�,,599,414) 29,980,124 23,226,091 Plan Fiduciary Net Position-Beginning 273,515,39�9 3�20,136,917 3�19,795,324 316�,195,9 10 346,176,03�4 Plan Fiduciary Net Position-Ending(b) 3�20,,136,917 3�19,795,324 3 16,195,910 346�,176,034 369,402,125 Plan Net Pension 1,iability/(Assets)-Ending(a)-(b) $ 83,165,618 $ 98,011,862 $ 124,548,59�2 $ 147,162,2�41 $ 146,510,92�5 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 79.38�% 76.54�% 71.74�% 70.17% 71.60% Covered Payro�l,l $ 34,243,101 $ 34,117,846 $ 37,174,663 $ 37,817,316 $ 39,384,099 Plan Net Pension I.Jahility/(Asset)as a Percentage of Covered Payroll 242.87% 287.27% 335.04% 389.141!/Ao 372.01%) (1)Historical information is,required onlyfor measurement forwhich(.-iASB 68 is applicable.Fiscal Year 2015 was the first year ofimplementation,therefore only five years are sliown, Notes to Schedule: Benefit Chan s:'"I'he figures above do not include any liability impact that rnay have resulted'from plan changes which occurred after the June 30,20 17 valuation date.This,applies for .................................................................................................m voluntary benefit changes as well as any offers of Two Years Additional Service Credit(a.k.a.Golden Handshakes). Changes ol"Assumptions:In 2018,demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of"ActUarial Assumptions December 2017.There were no changes in the discount rate.In 2017,the discount rate was reduced from 7.6,5 percent to 7.15 percent.In 2016,there were no changes.In 2015, amounts reported reflect an a4justment of"the discount rate(�orn 7.5 percent(net of"administrative expense)to 7.6�5 percent(without a reduction l"orpensionplan administrative expense.)In 2014,amounts reported were based on the 7.5 percent discount rate. See 7j"j@10*2qujXg4M;VQig"ary Information 120 Page 328 of 421 CITY OF CHULA VISTA SAFETY PLAN SCHEDULE OF PLAN CONTRIBUTIONS AS OFJUNE 30,,FOR THE LAST TEN FISCAL YEARS(1) 2015 2016 2017 2018 2019 Actuarially Determined Contribution S 12,553,815 $ 13,859,572 $ 14,965,975 $ 17,324,929 19,585,859 Contribution ill Relation to the Actuarially Determined Contribution (12�553,�815) (I 31859�572) (14 965,975) 17,324,929) (19,585,859) Contribution Deficlency(Excess) $ - $ $ - Covered Payroll $ 341117,846 $ 37,174,66,3 $ 37,817,316 S 39,384,09�9 $ 40,374,060 Contributions as a Percentage of Covered Payroll 36.80% 3 7.2 8% 39�57% 43,99% 48,5 1% (1)1 listorical information is required only for measurement fior which GASB 68 is applicable.FY 2014/15 was the first year of implementation,therefiore only five years are shown. Note to Schedule: Valuation Date: June 30�,20 16 Methods and assumptions used to determine contribution rates: Actuarial cost method Entry age normal cost method Amortization method/period Level percentage of payroll,closed Assets valuation method Market Value Inflation 2.75% Salary Increases 3.20%to 12.200% Investment rate of return 7.50%net of pension investment and administrative expenses,including inflatio�n. Retirenlent age 'rhe probabilities of Retirement are based on tile 2,014 CalPER.S,Experience Study for the period,frorn 1997 to 2011. Mortality IZP-2000 Health Annuitant Mortality Table See Information 121 Page 329 of 421 CITY OF CHULA VISTA SCHEDULE OF CHANGES IN THE TOTAL OPEB LIABILITY AND RELATED RATIOS AS OF JUNE 30�,FOR THE LASTTENFISCAL YEARS(1.) 2018 2019 Total OPEB Liability Service cost $ 825,786 $ 819,1100 Interest on the total OPEB liability 495,822 549,169,9, Difference between expected and actual experience 41128 Change of assumptions 183,361 504,11910 Implicit rate subsidy fulfilled (536,155) (634,315) Net change in total OPEB liability 972�942 11238,674 Total OPEB liability-beginning 131726�597 14�1699�5�39 Total OPEB Liability $ 141699�539 $ 15,9381213 Covered-employee payroll $ 53,73�8,46�9 $ 551,216,277 Total OPEB liability as a p�ereentage of covered-employee payroll 27.35% 28.87% (1) Historical information is required only for the measurement periods for which G.A.SB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years'information will be displayed up to 10 years as information becomes available. Notes to Schedule:None Changes in assumptions: None See N*5*Ae)qpAfA�igpMjementary Information 122 Page 330 of 421 CITY OF CHULA VISTA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED JUNE 301 2019 1. BUDGETARY INFORMATION' .An. annual.budget is adopted by the City Counci.l.prior to the first day of the fiscal year. The budget process includes submittal of each, department's budget request for the next fiscal year, a detailed review of each department's proposed budget by the City Manager, and a final City Manager recommended budget transmitted to, the City Council for its review before the required date of adopti.on. Once tran.sm,itted to the City Council, the proposed budget is made avai.lable for publi.c inspection. A public hearing is held to give the public the opportunity to comment upon the proposed budget. Notice of such public hearing is published in a newspaper of general circulation. The adoption of the budget is accomplished by the approval of a Budget Resolution. The legal level of budgetary contro�l is at the expenditure function level. Any budget modification, which would result in an appropriation increase, requires, City Council approval. The City Manager is, authorized to transfer appropriations,up to $15,000 within a departmental budget. Any appropriation transfers between departments or greater than $15,00�O require City Council approval. Reported budget figures are as origi.n.ally adopted or subsequently amended plus pri.or year continuing appropriations. Such budget amendments during the year, including those related to supplemental appropriations, did not cause these reported budget amounts, to be significantly different than the origi.n.ally adopted budget amounts. All. appropriations whi.ch. are not obligated, encumbered or expended at the end of the fiscal year lapse and become a part of the unreserved fund balance which may be appropriated for the next fiscal year. An annual budget for the year ended, June 30, 2019, was, adopted and approved by City Counci.l. for the general, special revenue, capital project and debt service funds except for the Mobile Park Fee, V2 Pub Benefit Contribution and Special Revenue Endowments, special revenue funds, and the Highways Safety, Tran.sportati.on Partnersbip and Industrial, Development Authority capital. project funds,. These budgets are prepared on the modified accrual basis of accounting. Expenditures for the year ended June 30, 20�19, exceeded appropriations of the General and Major Special.Revenue as follows: Fund Ex,Enchftures Appropriations Excess General Fund: Community development Econornic development 21�169 274 2 136 750 (32,524) Public works Erigineering 1115141900 817291142 (2,785,758) 2020-04-21 Agenda Packet, 123 Page 331 of 421 2020-04-21 Agenda Packet, 124 Page 332 of 421 "PLEMENTA,RY INFORMATION 2020-04-21 Agenda Packet 125 Page 333 of 421 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 3�0,2�019 Special Revenue Funds Transportation ("rants Parking Meter Traffic Safety Storm Drain Assets: Pooled cash and investments, $ 7,884,626 $ 1,488,00�5 $ 194,629 $ 867,122 Receivables,: AccOLHIN - 30,687 45,144 189,139 Taxes 875,491 - - - .Accrued interest - - - - Defierred loans - - - - Allowance for uncollectible deferred loans - - - - Due frorn other governments - - - - Restricted assets: Cash and investments with fiscal agents - - - - Total Assets 8,,760,,117 1,,518,,69�2 239,773 1,056,261 ------------------------------ I...,iabilities and Fund Balances: Liabilities: Accounts payable 53,165 23,419 $ 5,825 $ 57,260 Accrued liabilities - - - - Unearned revenues - 13,582 Retentions payable 61,558, - Deposits payable - Due to,other fluids - - - Total Liabilities 114,723 23�,,419 5,825 70,842 Deferred Inflows of Resources: Unavailable revenues - - - Total Deferred Inflows,of Resources - Fund Balances: Restricted for: Cornn:iunity development projects 8,645,394 - Public safety - 1,49�5�273 2331948 Parks and recreation - - - - Capital Projects - - - 9 8 5,419 Debt service - - - - Assigned to: Endowments - - - Unassigned - - - - I I otal Fund Balances 8,,64,5,,3�94 1,495,273 233�948 985,419 Total Liabilities and Fund Balances $ 8,760,,117 $ 1,,518,,69�2 2^773 1�056�261 2020-04-21 Agenda Packet, 126 Page 334 of 421 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 3�0,2�019 (CONTINUED) Special Revenue Funds Open Space Housing Housing Transportation Town Center I Districts Programs Authority Sales Tax Assets: Pooled cash and investments, $ 55,045 $ 30,283,322 $ 117,264 $ 2,786,402 $ Receivables,: AccOLHIN - - 13 16,315 Taxes - 23,969 - - .Accrued interest - - - - Defierred loans - - 447,167 3,417,701 Allowance for uncollectible deferred loans - - - (3,417,701) - Due frorn other governments - - 9,408 3�5,209 Restricted assets: Cash and investments with fiscal agents - - - - - Total Assets 55,04�5 $ 30,307,291 $ 573,852 $ 2,802,717 $ 35,209 ------------------------------ I...,iabilities and Fund Balances: Liabilities: Accounts payable $ - $ 1,173,752 $ 44 $ 9,379 $ 985,617 Accrued liabilities - - - 18,650 - Unearned revenues - - - - 35,209 Retentions payable - - - - - Deposits payable - - - - - Due to,other fluids - 153,245 - - 923,306 Total Liabilities 1,3�26,997 44-1 28,029 1,944�,132 Deferred Inflows of Resources: Unavailable revenues 4�327 - Total Deferred Inflows,of Resources 4,327 - Fund Balances: Restricted for: Comrnunity development projects 569,481 2,774,688 Public safety - - Parks and recreation - - Capital Projects 55,045 28,980,294 Debt service - - Assigned to: Endowments Unassigned - - - (1,908,923) 1 1 otal Fund Balances 55,04,5 28,980,294 569,481 2,,774�688 (1,908,923) 'ro�tal Liabilities and Fund Balances $ 55,04,5 $ 30,307,291 $ 573,852 S 2,802,717 35,209 2020-04-21 Agenda Packet, 127 Page 335 of 421 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 3�0,2�019 Special Revenue Funds Public Mobile Park Education and Utility Tax V2 Pub Benefit Special Revenue Fee ("ovt Fee Settlement Contribution Endowments Assets: Pooled cash and investments, 257,155 1,725,440 99,899 374,764 1,548,680 Receivables,: AccOLHIN 50 - - - - Taxes - 140,282 .Accrued interest - - - - - Defierred loans - - - - - Allowance for uncollectible deferred loans - - - - - Due frorn other governments - - - - - Restricted assets: Cash and investments with fiscal agents - - - - - Total Assets 257,205 $ 1,8,65,,722 $ 99,899 $ 374,764 $ 1,548,680 I...,iabilities and Fund Balances: Liabilities: Accounts payable 2,670 97,911 $ - Accrued liabilities - - Unearned revenues 41,850 Retentions payable - - Deposits payable 1,484,478 Due to,other fluids - - - Total Liabilities 44�,520 97,911 1,484,478 Deferred Inflows of Resources: Unavailable revenues - - - Total Deferred Inflows,of Resources - - Fund Balances: Restricted for: Comrnunity development projects 1,767,811 374,764 Public safety - - - Parks and recreation 212,685 - Capital Projects - - 99,899 Debt service - - - - Assigned to: Endowments - - 64,202 Unassigned - - - - - I I otal Fund Balances 212,685 1,767,811 99,899 374,764 6�4,202 'ro�tal Liabilities and Fund Balances $ 257,205 $ 1,865,722 $ 99,899 $ 374,764 $ 1,548,680 2020-04-21 Agenda Packet, 128 Page 336 of 421 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 3�0,2�019 (CONTINUED) Capital Projects Funds Park Residential Industrial Assessment Acquisition Construction Development District Development Tax Highway Safety Bicycle Facility Authority Improvement Assets: Pooled cash and investments, 36,254,726 18,045 939 54 1,098,,101 Receivables,: AccOLHIN - - - - Taxes .Accrued interest - Defierred loans 845,144 Allowance for uncollectible deferred loans - Due frorn other governments Restricted assets: Cash and investments with fiscal agents - - - - - Total Assets $ 37,099,870 18,0�45 93�9 $ 54 $ 1,098,101 I...,iabilities and Fund Balances: Liabilities: Accounts payable $ Accrued liabilities Unearned revenues Retentions payable Deposits payable Due to,other fluids 4,460 Total Liabilities - 4�,4�60 Deferred Inflows of Resources: Unavailable revenues 845,144 Total Deferred Inflows,of Resources 845,144 Fund Balances: Restricted for: Comrnunity development projects - - Public safety 939 Parks and recreation - - - - Capital Projects 36,254,726 18,045 54 1,098"10,1 Debt service - - - Assigned to: Endowments Unassigned - - (4,460) - I I I otal Fund Balances 36,254,,726 18�,0145 93�9 (4,,4601) 54 '1,09�8,101 Total Liabilities and Fund Balances $ 3 7,099,8701 $ 18�,0145 $ 93�9 $ $ 54 $ 1,098,101 2020-04-21 Agenda Packet, 129 Page 337 of 421 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 3�0,2�019 Capital Projects Funds Debt Service Funds Transportation Other Partnership 'Transportation Capital Projects City Debt Fund— —Program Fund Fund— Service Notes Pavable Lease Payable Assets: Pooled cash and investments, 104 69,767 2,0�59,598 65,497 84,318 Receivables,: AccOLHIN - - 17,217 - 15,644 Taxes - - - - .Accrued interest - - 47,446 Defierred loans - - - Allowance for uncollectible deferred loans - - Due frorn other governments - 4,954,803 Restricted assets: Cash and investments with fiscal agents - - 3,666,,381 - - Total Assets $ 104 5,024,570 5,790,642 65,497 99,962 I...,iabilities and Fund Balances: Liabilities: Accounts payable $ - 1,176,347 27,58,2 709 Is - Accrued liabilities - - - - Unearned revenues - - - Retentions payable - 428,835 5,732 Deposits payable - - - - Due to,other fluids - 3,653,607 - 41- 25,,270 Total Liabilities 5,258,7891 33,314 41 25,979 Deferred Inflows of Resources: Unavailable revenues - - - Total Deferred Inflows,of Resources Fund Balances: Restricted for: Comrnunity development projects - Public safety 104 Parks and recreation - - - Capital Projects - - 5,757,328 - - Debt service - - - 39,518 99,962 Assigned to: Endowments - - - - - Unassigned - (234,219) - (41) - - I I otal Fund Balances 104, (23�4,,2191) 5,757,328 (41) 39,518 99,96�2 Total Liabilities and Fund Balances $ 104, $ 5,024,570 $ 5,790,642 $ - 65,497 99,962 2020-04-21 Agenda Packet, 130 Page 338 of 421 CITY OF CHULA VISTA COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS JUNE 3�0,2�019 Total Governmental Funds Assets: Pooled cash and investments, 87,,333,502 Receivables,: AccOLHIN 3 14,20,9 Taxes 1,039,,742 .Accrued interest 47,446 Defierred loans 4,710,,012 Allowance for uncollectible deferred loans (3,417,701) Due frorn other governments 4,999,,420 Restricted assets: Cash and investments with fiscal agents 3�,666,,381 Total Assets $ 98,693,011 I...,iabilities and Fund Balances: Liabilities: Accounts payable S 3,613,,690 Accrued liabilities 18,650 Unearned revenues 90,641 Retentions payable 496,125 Deposits payable 1,494,478 Due to,other fluids 4,759,929 Total Liabilities 10,463,503 Deferred Inflows of Resources: Unavailable revenues 849,471 Total Deferred Inflows,of Resources 849,471 Fund Balances: Restricted for: Comyriunity development projects 14,132,138 Public safety 1,730,264 Parks and recreation 212,685 Capital Projects 73,248,911 Debt service '139,480 Assigned to: Endowments 64,202 Unassigned (2,147,643) 1 1 1 otal Fund Balances 87,380,037 Total Liabilities and Fund Balances $ 98,693,011 2020-04-21 Agenda Packet, 131 Page 339 of 421 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTALFUNDS FOR FISCAL YEAR ENDED JUNE 30,2019 Special Revenue Funds Transportation Grants Parking Meter Traffic Safety StormDrain Revenues: Taxes $ - $ $ Licenses and permits 3�0,080 I ntergove rn mental 10,,409,630 - Charges for services - - - 668,095 Use of money and property 223,135 442,770 15,509 29�,127 Fines and forreitures - 265,241 488,492 200 Developer participation - - - Miscellaneous - - - - Total Revenues 10,632,765 738�091 504,0�01 697,422 Expenditures: Current: General government - 576,3 15 - - Public safety - 66,892 Community development - - - Public works 6,926 - 309,56,3 Capital outlay 2,007,13�7 128,586 - Debt service: Principal retirement - - Interest and fiscal cliarges - - - 2,254 Total Expenditures 21014,063 7041901 66,892 311,817 Fxcess(Deficiency)of Revenues Over(Under')Fxpenditures 8,618,702 33,190 437,109 385,605 Other Financing Sources(Uses): Transf'�rs in - - - - Transf'�rs out (4,258,673) (399,140�) Total Other Financing Sources (Uses) (4,258,673) - (39�9,140) - Net Cliange in Fund Balances 4,360,029 33,190 37�969 38�5,605 Fund Balances,Beginning of Year 4,285,365 1,462,083, 195,979 5199,814 Fund Balances,End of Year $ 8,645,394 1,495,273 $ 233,,9�48, $ 985,,419 2020-04-21 Agenda Packet, 132 Page 340 of 421 CITY OF CI-IULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERN.MENTALFUNDS FOR FISCAL YEAR ENDED JUNE 30,2019 (CONTINUED) Special Revenue Funds Open Space Housing Housing Transportation 'Town Center I Districts Programs Authority............................... Sales Tax Revenues: Taxes $ - $ $ $ 3,109,0 11 Licenses and permits - - - I ntergove rn mental - - 3 1,520 4,807 Charges for services - '16,3 0 8,8 54 - 44,895 - Use of money and property 1,895 958,763 861 99,741 11,836 Fines and forreitures - - - - - Developer participation - - - - Miscellaneous - 15,576 20,0�93 815,01,9 10,806 Total Revenues 1,895 17,283�193 52,474 959,655 3,136,460 Expenditures: Current: General government - - - - - Public safety - - Community development - 124,784 1,025,339 - Public works 10,548,156 - - 18,832 Capital outlay 643 5,53 1,960 Debt service: Principal retirement - - Interest and fiscal cliarges - - Total Expenditures - 10,548,799 124,784 1,0�25,339 5�,550,,792 Fxcess(Deficiency)of Revenues Over(Under')Fxpenditures 1,895 6,734,394 (72,310) (65,684 (2,414,332) Other Financing Sources(Uses,): Transf'�rs in - 152,482 - Transf'�rs out - (254,697) Total Other Financing Sources (Uses) - 152,482 (254,69�7) Net Cliange in Fund Balances 1,895 6,886�876 (72,310) (320,381) (2,414,332) Fund Balances,Beginning of Year 53�,150 22,093,418 641,791 3,095,069 505,409 Fund Balances,End of Year $ 55,045 28,980,294 $ 56�9,481 $ 2,774,68,8 $ (1,90�8,,9�23) 2020-04-21 Agenda Packet, 133 Page 341 of 421 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERN.MENTALFUNDS FOR FISCAL YEAR ENDED JUNE 30,2019 Special Revenue Funds Public Special, Mobile Park Education and Utility'l,ax V2 Pub Benefit Revenue Fee Govt Fee Settlement Contribution Endowments Revenues: Taxes $ - - $ - $ - $ Licenses and permits - - - - I ntergove rn mental - - - - Charges for services - - - - Use of money and property 1,387 10,,072 4,0,39 13,190 54,243 Fines and forreitures - - - - - Developer participation - - Miscellaneous 56,850 551,940 - - - Total Revenues 58,237 562�012 4�039 13,190 54,2�43 Expenditures: Current: General government - 497,018 25,000 - - Public safety - - - - Community development 39,227 932 Public works - - - Capital outlay 3 9,400 Debt service: Principal retirement - Interest and fiscal cliarges - - - - Total Expenditures 39,227 4971018 6�4,400 - 932 Fxcess(Deficiency)of Revenues Over(Under')Fxpenditures 19,010 64,994 ('60,361) 13,190 53,311 Other Financing Sources(Uses): Transf'�rs in - - - - Transf'�rs out Total Other Financing Sources (Uses) - - - Net Cliange in Fund Balances 19,010 64,994 (60,361) 13J90 53,311 Fund Balances,Beginning of Year 193,,675 1,702,817 160,260 361,574 10,8,91 Fund Balances,End of Year $ 212,685 1,767,811 9�9,899 $ 374,,764 $ 64,202 2020-04-21 Agenda Packet, 134 Page 342 of 421 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERN.MENTALFUNDS FOR FISCAL YEAR ENDED JUNE 30,2019 (CONTINUED) Capital Pro�jects Funds Park Residential Industrial Assessment Acquisition Construction Development District Development Tax, Highway Safety Bicycle Facility Authority Improvement Revenues: Taxes - $ 219,900 $ $ $ Licenses and perralts - - I ntergove rn mental - Charges for services - - - - - Use of money and property 1,271,670 11,304 24 (27) 2 38,095 Fines and forreitures - - - - - - Developer participation 780,194 - Miscellaneous - - - - - 2 Total Revenues 2,051,864 231,204 24 (27) 2 381097 Expenditures: Current: General government - - - - - 545 Public safety - - Community development 349,9�35 Public works - - Capital outlay 162 7,723 Debt service: Principal retirement - - Interest and fiscal charges - - Total Expenditures 3501097 - - - - 8468 Fxcess(Deficiency)of Revenues Over(Under')Fxpenditures 1,701,767 231,204 24 (27) 2 29,829 Other Financing Sources(Uses,): Transf'�rs in - - - - - - Transf'�rs out (8 5 6,9 12) (42) Total Other Financing Sources (Uses) - (856,912) - - - ('42) Net Change in Fund Balances 1,701,767 (625,708) 24 (27) 2 29�787 Fund Balances,Beginning of Year 3 4,5 5 2,9 5 9 643,753, 915 (4,433) 52 1,06,8,314 Fund Balances,End of Year $ 36,254,726 $ 18,045 939 (4,460) $ 5,4 $ 1,098,,101 2020-04-21 Agenda Packet, 135 Page 343 of 421 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERN.MENTALFUNDS FOR FISCAL YEAR ENDED JUNE 30,2019 Capital Pro�lects,Funds Debt Service Funds Transportation Other Partnership Transportation Capital City Debt Fund Program Fund Projects Fund Service Notes Payable Revenues: Taxes $ - $ $ Licenses and permits - - I ntergove rn mental - 7,970,191 Charges for services - - - Use of money and property 3 (58,084) 191,613 (41) 2,497 3,393 Fines and forreitures - - - - - Developer participation - Miscellaneous - - 1,53�4,976 - 34,786 Total Revenues 3_ 71912,107 IJ26�589 (4o 2,497 38J79 Expenditures: Current: General government - - - Public safety Community development Public works - - Capital outlay 8,484,9 14 6,656,569 - - Debt service: Principal retirement - - 905,867 290,8,65 Interest and fiscal cliarges 412,315 52,511 Total Expenditures - 8,484,914 6,6�56,56,9 L318,182 343,3,76 Fxcess(Deficiency)of Revenues Over(Under')Fxpenditures 3 (572,807) (4,929,980), (41) (1,315,685) ...........................................................(.3..O.5..,..l 9..7.) Other Financing Sources(Uses): Transf'�rs in - - 1,412,152 290,409 Transf'�rs out (107,415) ('75,000) (67,448) - Total Other Financing Sources (Uses) - (107,415) (75,000) - 1,344,704 290,409 Net Cliange in Fund Balances 3 (680,222) (5,0�04,980) (41) 29J)19 (14,788) Fund Balances,Beginning of Year 101 446,003 10,762,3�08 - 10,499 114,,750 Fund Balances,End of Year $ 104 $ (234,219) $ 5,757,328 (41) $ 39,,518, $ 99,962 2020-04-21 Agenda Packet, 136 Page 344 of 421 CITY OF CHULA VISTA COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NON-MAJOR GOVERN.MENTALFUNDS FOR FISCAL YEAR ENDED JUNE 30,2019 Total Governmental Funds Revenues: Taxes $ 3,328,911 Licenses and permits 30,080 1 ntergove rn mental 18,,416,148 Charges for services '17,021,1844 Use of money and property 3,327,017 Fines and forreitures 753,933 Developer participation 78,0,194 Miscellaneous 3,040�,048 Total Revenues 46,698,175 Expenditures: Current: General government 1,098,878 Public safety 66,892 Community development 1,540�,217 Public works 10,883,477 Capital outlay 22,857,094 Debt service: Principal retirement 1,196,,732 Interest and fiscal cliarges 467,080 Total Expenditures 3 8,11 O�,3 70 Fxcess(Deficiency)of Revenues Over(Under')Fxpenditures 8,587,80�5 Other Financing Sources(Uses,): Transf'�rs in 1,855,043 Transf'�rs out (6,019,327) Total Other Financing Sources (Uses) (4,,164,284) Net Cliange in Fund Balances 4�423,521 Fund Balances,Beginning of Year 82,956,516 Fund Balances,End of Year $ 8,7,380�,037 2020-04-21 Agenda Packet, 137 Page 345 of 421 CITY OF CHULA VISTA BUDGETARY COMPARISON SCHEDULE BY EXPENDITURE CATEGORY GENERALFUND FOR THE FISCAL YEAR ENDED JUNE 30�2019 Personnel Supplies,and Other Operating Services Services Utilities ........Expenses Capital Current: City COUncil 145 1.�818 48�234 734 $ - City clerk 760.�534 227�957 357 6�742 City attorney 2�280484 294�740 865 - 16�299 Administration 1 1�879�154 1561)031 787 - - Information technology 2�201 A04 IJ95J63 3�357 - 1089 Human,resources 1193�3�41 1. 3401)504 1�91.0 - 2�243 Finance 21)973��773 9961)1.48 203 875NI 4541.5 No�n.-departmcn,tal 3951984 3,5161568 2�626 685J.79 - Board and commissions - 10453 - - - Police 521)2651222 21)657i�855 580!389 34409 53�589 Fire 30!�657M42 11)859fi75 201!399 2511813 60�420 Animal care facilities 2�4571089 372!378 511993 5�233 41973 Economic development 1�92711797 168!314 31484 691229 - Development services 2�4451995 103!547 2JII 121950 - Parks and recreation 71093�18 8 1 500 2672604 28312 55317 PUblic works 4!565fi98 11)850MOO 636!987 61433 66�733 Engineering I 01�1661925 2 73!�173 8 5 6!�8,5 7 93�181 - L,,i b�rary 31308�287 282!576 3 1 7M)142 360, Capital OLItlay - - - - 21.11 63M)706 Principal retirement - - - 5M)744M50 interest and fiscal charges - - - 2M)855�721 Transfers OUt - - - Total Expenditures 1,2817631805 15,429,216 5,336,665 1 O�,979,91.3 $ 21,4799384 2020-04-21 Agenda Packet, 138 Page 346 of 421 Variance with FinalBudget Internal Transfers Actual Final Positive Service O�ut Amounts Budget .... (Negative) 1�500.�786 L626�561 $ 1.25�775 99�5.�590 1,1048.04 53�1.04 2.�5 9,2.13 8 8 3,1208.�389 6160 1 2M35.1972 2,121.6.M56 1.8084 162 - 1�41.01775 3,1840.�194 429�419 - - 2.�278.1068 2,1899.fi32 621�564 47 - 4189�3i947 12.�431.1650 719537�703 21 - 4160OX8 61878�564 219278.�186 - - 1.0.�4 5 3 271�783 1.7�33�O 1 M 12 923 - 5 6.191 5.1�18 7 58.14271861 1.1512fi74 1 M57 932 - 34.1088.1�281 37.14941767 3.14061�486 48�285 - 2,9391�951 21976�3�06 361�355 50 - 2,1691�274 21136�750 (32,524) 21 M92 - 2,585,05 2190096 314�401 283�316 - 1 1.1208.1�237 1113351051 126�814 450�254 - 7.15 761�105 12.10261�492 4.14501�387 124�764 - 1 1.1514.1�900 8.17 2 9.1�14 2 (2,785,758) 1 N8 - 3.19101273 411821A19 272�146 - - 21 16�3, 1 1 1� .1 �706 70013034 48 849 3�28 - - 5.17 4 4.1�0 5 0 519731�239 2291�189 - - 2855, 1 .1 �721 2 9681�388 11107 - 41�1 79M49 41179M49 5 776 715 1 5971� 666 310005,754 45179M49 $ 1894681786 259,117,783 $ 69�19489997 2020-04-21 Agenda Packet, 139 Page 347 of 421 CITY OF CHULA VISTA BUDGETARY COMPARISON SCHEDULE BY EXPENDITURE CATEGORY SUNDRY GRANTS FOR THE FISCAL YEAR ENDED JUNE 30�2019 Personnel Supplies and Other Operating Services Services Utilities Expenses -------Capital General.Government Finance $ - $ - $ 14.�219, 5�770 .Public saf'ety Police 6.124 L�965 9018,9578 1191962 - Fire 65.�204 218�9�73 - Animal care facility 151649 - - Community develop.r.nent Economic development 765�292 983.1318 21,841 846,166 7�700 DeVel.OpMent services 6�742 11403 11393 55311699 68%774 .Public work.s .Public work.s - - - - ].�'.ngineenng 1,.,ibrary L,,i b�rary 371)881 - Capital OLItlay 104.1465 Transfers OUt - - - - Total Expenditures 71117,084 $ 2J27�921 239234, 1�5341046 2�3879709 2020-04-21 Agenda Packet, 140 Page 348 of 421 Variance with FinalBudget Internal Transfers Actual Final Positive Service Out Amounts ...Budget (Negative),.,., $ - $ M989 $ 172.1547 $ 1.52�558 - 71270�505 0771292 2�406�787 - 2841�1.77 1 M001926 71.6�749 - 15fi49 MAO - 18�977 - 2.1643,294 4�28�O�535 - - 1.1253M1 1. 7�75215 10, - 53.1335 53�335 11787.1970 - 37iMi 80.1656 42.1775 1.16841,465 - (1,684,465) - 1 1.17881,362 1081013 19.1651 181977 S 1 J88�362 $ 1,41997,333 $ 261633,784 $ 1 J079,390 ------------------------ ---------------------- 2020-04-21 Agenda Packet, 141 Page 349 of 421 CITY OF CHULA VISTA BUDGETARY COMPARISON SCHEDULE BY EXPENDITURE CATEGORY HOUSING SUCCESSOR,AGENCY FOR THE FISCAL YEAR ENDED JUNE 30�2019 Variance with Final Budget Supplies and Other Operating Actual Final Positive Services Expenses Capital Amounts Budget (Negative) ------ ---------------------------------- ---- Cuffent: DevelopMent services 1�241 $ 1 M56 $ 2�925 $ 5.�223 $ 4J.09J.60 $ 4.�103�93 7 Total Expenditures $ 1,241 $ 1�056 $ 2�925 $ 5,223 $ 411.09J60 $ 491031937 2020-04-21 Agenda Packet 142 Page 350 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL 'TRANSPORTATION GRANTS FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $1 1.>7�850 $ 11>711850 $ l0i409,630 $ (858,220) Use of money and property - - 223 i 13 5— 223J35 Total Revenues, 111,267,850 11,267,850 1 0�6321765 (6355085) Expenditures: Current: Public works - 3951�704 6926 388778 Capital outlay 81J)201212 1012281J37 2007 137 8221,000 Total Expenditures 810201212 10,623,841 21014^3 81609J78 Excess(Deficiency')of Revenues Over(Under)Expenditures 31247.1638 644M09 8"kl8i702 71,9741693 Other Financing Sources,(Uses): Transfers out �4,364,371) �4,383�,37 1) (41,258i673) 'I 24169�8 Total Other Financing Sources (Uses) (413641371) (41383,371) (41258,673) 124�698 Net Change in FUnd Balances (1,11611733) (3,73�9,3�62) 4i'360i029 811099i391 FUnd Balances.,Beginning of Year 4�28511365_ +�285'1�365 41,285i36�5 - Fund Balances,End of Year $ 31168,632 $ 546,003 $ 81645,394 $ 81099,391 2020-04-21 Agenda Packet, 143 Page 351 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL PARKING METER FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Licenses and permits $ 25.1000 $ 25")()00 $ 3000 $ 5,1080 Use of money and property 36500 365M00 442770 77770 Fines and,forfeitures 20(MOO 2001J)00 265241 65241 Total Revenues 590,000 59,01000 7389091 148,091 Expenditures: Current: General government 572�270 723�719 576i315 147i404 Capital outlay 250J)00 349 3�49 128 586 220763 Total Expenditures 8,22,270 1�0731068 704�901 368,167 Excess(Deficiency')of Revenues Over(Under)Expenditures (232,270) �48�3�,068) 331190 51612 5 8 Net Change in FUnd Balances (23�2,270) (48�3,068) 3 3119() 5161258 FUnd Balances.,Beginning of Year 1�46211083 L�462'103 '1 1146203 - Fund Balances,End of Year $ 11229,81.3 $ 979101.5 $ 1.1495,273 $ 516,258 2020-04-21 Agenda Packet, 144 Page 352 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL 'TRAFFIC SAFETY FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ - $ - $ 151,509 $ 15�509 Fines and,forfeitures 4371�640 437640 488492 50852 Total Revenues 437,640 437,640 5049001 66,361 Expenditures: Current: P�ublic safety 38.1500 90.1500 661,892 23 08 Total Expenditures 38,500 901500 66,892 231608_ Excess(Deficiency')of Revenues Over(Under)Expenditures 399.1140 347�140 4371109 891969 Other Financing Sources,(Uses): Transfers out �399,140) (399,140) (3 99�,140) - Total Other Financing Sources (Uses) (39,9,140) (399,140) (399J40) Net Change in Fund Balances - (52,000) 371969 89i,969 Fund Balances.,Beginning of Year 195,1�979 195�979 195,1979 - Fund Balances,End of Year $ 195,979 $ 1431979 $ 233,948 $ 891969 2020-04-21 Agenda Packet, 145 Page 353 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL STORM DRAIN FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Licenses and permits $ 23i750 $ 23i750 $ - $ (23,750) Charges for�services 5 5 5,5 00 5 5 5,5 00 6681095 1121595 Use of money and property - - 29�127 291127 Fines and forfeitures 500 500 200 (4,800) Total Revenues 5841250 584,250 697,422 113J72 Expenditures: Current: City administration 250 250 - 250 Public works 348fi90 505i739 3091563 196.�176 Debt service- Interest and fiscal charges - 2�254 (2,254) Total Expenditures 348�94�O 5051989 31,11817 1,941 172 Excess(Deficiency')of Revenues O�ver(Under)Expenditures 235i3 10 78i261 385.1605 307.1344 Net Change in Fund Balances 235�3 10 78i261 38505 307�344 Fund Balances.,Beginning of Year 599�814_ 599i814 5991814 - Fund Balances,End of Year $ 8351124 $ 678,075 $ 98511419 S 30�71,344 2020-04-21 Agenda Packet, 146 Page 354 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL 'TOWN CENTER I FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ $ $ 1�895 $ 1�895 Total Revenues - 11895 11895 Expenditures: Capital outlay 10.1120 - 101,120 Total Expenditures 101,120 - 10,120 Excess(Deficiency')of Revenues Over(Under)Expenditures (10,,120) '11,895 121,015 Net Change in FUnd Balances - (I O�,120) 111895 121,015 FUnd Balances.,Beginning of Year 53��150 531 150 53,1150 - Fund Balances,End of Year 53,150 431,030 $ 55,045 121015 2020-04-21 Agenda Packet, 147 Page 355 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL OPEN SPACE DISTRICTS FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Charges for services $ 15,36�7,743 $ 15,36�7,743 16i308,854 $ 941J I I Use of money and property - 958i763 958i763 Other revenues 5�650 151,576 9X6 Total Revenues, 155367J43 151373�393 1752835193 1,909,800 Expenditures: Current: Public works 12,529,111 12�979,933 101548,156 2i431,777 Capital outlay 10002 11 8i216 643 11 7i573 Total Expenditures 1216291113 1,3109811,49, 1015481799 215491350 Excess(Deficiency')of Revenues Over(Under)Expenditures 2.�738i630 2i2751244 61,734i394 4i459i 150 Other Financing Sources,(Uses): Transfers in 671823 67i823 1521482 841659 Transfers out (67,823) (67,823) - 671823 Total Other Financing Sources (Uses) 152�482 152,482 Net Change in Fund Balances 2i738�630 21275i244 61,886i876 4i,61 I i632 Fund Balances.,Beginning of Year 22iO93�418 22iO93.�418 221093i418 - Fund Balances,End ol"Year $ 24�183210�48 $ 24�1368�662 $ 28,980,294 $ 4,611,632 2020-04-21 Agenda Packet, 148 Page 356 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL HOUSING PROGRAMS FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 51J00 $ 51.1100 $ 3 1�520 $ (19,580) Use of money and property - 861 86 1 Other revenues, - - 20M93 20iO93 Total Revenues 51,100 511,100 52,474 11374 Expenditures: Current: Community development 51J00 5011502 124784 376718 Total Expenditures 51,100 501,502 124J84 376,718 Excess(Deficiency')of Revenues Over(Under)Expenditures - (450,402) (72,3 10) 3�78109�2 Net Change in Fund Balances - (450,402) (72,3 10) 3�78,1092 Fund Balances.,Beginning of Year 641�79'1 641�79'1 6411791 - Fund Balances,End of Year $ 641.1791. $ 191.1389 $ 569,481 $ 378,092 2020-04-21 Agenda Packet, 149 Page 357 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL HOUSING AUTHORITY FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Charges for services $ $ $ 44.�895 $ 44�895 Use of money and property 991741 991741 Other revenues I i204,060 11204M60 815 M 19 (389,041) Total Revenues 11204�060 1,2041060 9591,,6�55 (244�405) Expenditures: Current: Community development 1�21215256 1 297266 1 O�25 339 271,9�27 Total Expenditures 11212,256 1�2971266 1,10251339 271�927 Excess(Deficiency')of Revenues Over(Under)Expenditures (8,196) (93,206) (6�5,684) 271,522 Other Financing Sources,(Uses): Transfers out (254,6�97) (254,697) (254,697) - Total Other Financing Sources (Uses) (254,697) (254,697) (25416�97) Net Change in Fund Balances (26,2,893) (347,903) (320,381) 27i,522 Fund Balances.,Beginning of Year 31095M69 31095M69 3M95.1069 - Fund Balances,End of Year $ 2183 2,176 $ 217471166 $ 217741688 $ 27,522 2020-04-21 Agenda Packet, 150 Page 358 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL 'TRANSPORTATION SALES TAX FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 6,087,000 $ 6J)871X0 $ 3,109 Wt $ (2,977,989) Intergovernmental - 36.1500 4.�807 (311,693) Use of money and property - 111836 111836 Other revenues - 1018016 101806 Total Revenues 65087�OO�O 6,1231500 3J361460 (219871040) Expenditures: Current: Public works 55,33�2 18.1832 3�61,500 Capital outlay 6i419M39 161723��922 5�531.1960 '111 191 i96�2 Total Expenditures 614191039 1,61779,254 5�5�50,1792 11,228,462 Excess(Deficiency')of Revenues Over(Under)Expenditures (332,039) (10�,655,754) (2,414,33�2) 8,12411422 Fund Balances.,Beginning of Year 505140�9 5051409- 50�5,409 - Fund Balances,End of Year $ 1,73,370, (1,011501345) $ (I 19�0,81923) $ 81241�422 2020-04-21 Agenda Packet, 151 Page 359 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL PUBLIC EDUCATION AND GOVT FEE FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ - $ - $ 1 0.10�72 $ 1 0M72 Other revenues, 600,000 600,000 5511940 (48,060) Total Revenues 6001000 600,000 56210 12 (37�988) Expenditures: Current: General government 300,000 1 1 104,3 44 497M 18 6071326 Capital outlay 30000 300,000 - 300M00 Total Expenditures 600�000 11404�134�4 4�9,71018 907,326 Excess(Deficiency')of Revenues Over(Under)Expenditures - (804,344) 6,41994 869�338 Net Change in Fund Balances (804,344) 641994 86�9�338 Fund Balances.,Beginning of Year 1 i702.�817 1 i702�817 1�7025817 - Fund Balances,End of Year $ 11702,817 $ 898, 767,811 8691338 ,473 $ 1 2020-04-21 Agenda Packet, 152 Page 360 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL UTILITY TAX SETTLEMENT FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ $ $ 41�039 $ 4 039 Total Revenues - - 41039 49039 Expenditures: Current: General government - 261172 251,000 1J72 Capital outlay - 391400 391,400 - Total Expenditures - 651,572 64,400 11172 Excess(Deficiency')of Revenues Over(Under)Expenditures - (65,572) (60,361) 51,211 FUnd Balances.,Beginning of Year 160,1260 160.1260 1601260 - Fund Balances,End of Year 1601260 94,688 $ 991899 51211 2020-04-21 Agenda Packet, 153 Page 361 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL PARK ACQUISITION DEVELOPMENT FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ (I 1,00o) $ (11,000) 1,27 1,670 $ 1 1�282 670 Developer participation 700,000 700.1000 780i 194 801,194 '.I'otal Revenues, 689,000 689,000 210511864 1�3621864 Expenditures: Current: City administration 11000 1 1251�781 349 9�35 775 846 Capital outlay - 6�531121 162 652�959 Debt service- 1'nterest and fiscal charges 111000 115000 - I I MOO Total Expenditures 12 1�000 1 J891902 350�097 1j43%805_ Excess(Deficiency')of Revenues Over(Under)Expenditures 56800 (1,100,902) '1 11701 i767 20209 Other Financing Sources,(Uses): Transfers in 501000 501000 (50,000) Transfers out (50,000�) (50,000) 501000 Net Change in Fund Balances 56800 (1,100,902) '1 11701 i767 20209 Fund Balances.,Beginning of Year 34�5521959 34.1552'1�959 341552i959 - Fund Balances,End of Year $ 35�1201959 3,31452,057 36�2541726 21802�669 2020-04-21 Agenda Packet, 154 Page 362 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL RESIDENTIAL CONSTRUCTION TAX FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Taxes $ 3�25�505 $ 3251505 $ 219900 $ (105,605) Use of money and property - - 11�304 111304 Total Revenues 325,505 325,505 2319204 (94,301) Excess(Deficiency)of Revenues O�ver(Under)Expenditures 3251505 325 505 231204 (94301) Other Financing Sources(Uses): Transfers out �667,776) (667,776) (856,912) (l 8 9,13 6�) Total Other Financing Sources (Uses) (667,776) (6671776) (856�912) (189J36) Net Change in Fund Balances (3�42,27 1) (342,271) (625,708) (283,437)� Fund Balances.,Beginning of Year 643'1�75 3 643�753 643,1753 Fund Balances,End of Year $ 301,482 $ 301,482 $ 18,045 (283�437) 2020-04-21 Agenda Packet, 155 Page 363 of 421 CITY OF CHULA VISTA SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL BICYCLE FACILITY FOR THE FISCAL YEAR ENDED JUNE 301 20 19 Variance with Final Budget ,,,,,,,,,Budget Amounts Actual Positive Original Final —Amounts (Negative) Revenues-. Intergovernmental $ 65�0,0,0, $ 651000 $ - $ (65,000) Use of money and property - - (27) (27) 'Total Revenues 6510001 65,000 (27) (651027) Expenditures: Current: Public works 65M00 6500 - 6500 'Total Expenditures 61510001 654000 65�000 Excess(Deficiency)of Revenues Over(Under)Expenditures - - (27) (27) Net Change in Fund Balances - (27) (27) Fund Balances,BegInning of Year (4433) (4�433) (41433) - Fund Balances,End of Year $ (41,433) $ (44433) S (4,460) $ (27) 2020-04-21 Agenda Packet, 156 Page 364 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL ASSESSMENT DISTRICT IMPROVEMENT FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ $ $ 38.10�95 $ 38M95 Other revenues 2 2 Total Revenues 381097 38�1097 Expenditures: Current: General government 545 (545) Capital outlay 25i643 71723 l7X0 Total Expenditures - 25�64�3 8,126�8 17,375 Excess(Deficiency')of Revenues Over(Under)Expenditures - (25,643) 291829 55�472 Other Financing Sources,(Uses): Transfers out - (42) (42) Total Other Financing Sources (Uses) - (4�2) (4�2) Net Change in Fund Balances - (25,643) 29�78�7 551430 Fund Balances.,Beginning of Year I N8�314 1 i068�314 1.10685314 - Fund Balances,End of Year 110681314 1,10421671 1 10�9,811 01 $ 55,430 2020-04-21 Agenda Packet, 157 Page 365 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL DEVELOPMENT IMPACT FUNDS FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final — —Amounts (Negative) Revenues: Charges for services $ 20(1J)00 $ 200000 $ 30�9 106 $ 109106 Use of money and property 91X0 9000 2,040 33�3 2 031 3�33 Developer participation 7.103600 71036,100 15�780'1285 8'1)74305 Total Revenues 7,2451600 71,2459600 1811291724 10,8841124 Expenditures: Current: City administration 960.�300 964.�595 6�641124 300�")471 Capital outlay 919M44 1 05766M8 3�548A]0 71218,438 Debt service- 1'nterest and fiscal charges I LAO 11,000 36�779 (25,779) Total Expenditures 1�8901344 111,742,443 4�1249,313 714�9�31,130 Excess(Deficiency')of Revenues Over(Under)Expenditures 5�355�256 (4,496,843) 1300.�411 M377.1254 Other Financing Sources,(Uses): Transfers in IM35'10)0 1 5 142A]5 1 O�7.1415 (1,035,000) Transfers out (7,73�7,472) (7,737�472) (4,639,183) 310981289 Total Other Financing Sources (Uses) (61702,472) (61595,057) (4�1531,768) 2,0�63,289 Net Change in Fund Balances (I�347'1216) (11,09 1,9()0) 9�3481643 20�4405543 Fund Balances,Beginning of Year 461,068.1629 461068.�629 46�O�68,,629 - Restatements - - (394,643,) Fund Balances,Beginning of Year,as restated, 451,673.1986 451671�986 45�673,986 - Fund Balances,End of Year $ 44,326,770 $ 34�5821086 $ 55,022,629 $ 20,1440,543 2020-04-21 Agenda Packet, 158 Page 366 of 421 CIT'y OF CHULAVISTA SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL OTHER TRANSPORTATION PROGRAM FUND .FOR THE FISCAL YEAR ENDED JUNE 30,1201.9 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Intergovernmental $ 211761�107 $ 211761�107 $ 71970,191 $ 51�794iO�84 Use of rnoney and property - - (581084) (581084) Total Revenues 21.1.7611.07 2,1761107 7191.2,11.07 517361,000 Expenditures.-, Capital outlay 211761�107 15 801 445 8484914 71�316 531 Total Expenditures 211761107 151,801,445 814841914 71316,531 Excess(Deficiency)of Revenues Over(Under)Expenditures - (13,625,338) (572,8�07) 13�052'�531 Other Financing Sources(Uses).- Transfiers out (107,4151), (107,415) Total Other Financing Sources (Uses) ('107141.5), (1.07,4 15,) Net Change Fund Balances (13,732,753) 052,531 (680,222) 13� Fund Balances,Beginning of Year 446100�3 44603 44610�03 Fund Balances,End of Y'ear $ 4461003 $ (13�2861750) $ (234,219) $ 13,052,531, 2020-04-21 Agenda Packet, 159 Page 367 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL CAPITAL PROJECTS FUND FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ $ 75.1500 $ 191.1613 $ 1161113 Other revenues 21JO01�620 3202673 1 534976 (1,667,697) Total Revenues 2,1001620 3,2781173 1,7261589 (11551,584) Expenditures: Current: Public works - 23(1�752 - 230752 Capital outlay 21JO01�620 15 123 872 6656569 8,467 3�03 Total Expenditures 21100,620 1513541624 61656�1569 8,169,81055_ Excess(Deficiency')of Revenues Over(Under)Expenditures - (I 2,076�451) (4,929,980) 7.1146�471 Other Financing Sources,(Uses): Transfers out (75,500) (75,0,00) 500 Total Other Financing Sources (Uses) (75,500) (7510,00) 500 Net Change in Fund Balances (12,151,951) (5,0�04,980) 7�1465971 Fund Balances.,Beginning of Year 1 M62�308 10.1762'1�308 1 0.1762�308 - Fund Balances,End of Year $ 10,762,308 (1,389,643) 51757,328 $ 71146�1971 2020-04-21 Agenda Packet, 160 Page 368 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL NOTESPAYABLE FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ - $ $ 2�497 $ 2�497 Other revenues, 2581�000 2581X0 - (258,000) Total Revenues 258,000 258,000 29497 (2555503) Expenditures: Debt service: Principal retirement 908.1600 908,100 905�867 21,733 Interest and fiscal charges 415.1000 415"J)00 412�315 21,685 Total Expenditures 11323�1600 113231600 11318�182 51418 Excess(Deficiency')of Revenues Over(Under)Expenditures (1,0�65,600) (1,065,600) ('1 1131505) (250,085) Other Financing Sources,(Uses): Transfers in 1,323�,600 1.132300 L�412 i 15 2 881,552 Transfers out - - (6711448)� (67,448) Total Other Financing Sources (Uses) 1�3231600 113231600 11344JO4 21,104 Net Change in Fund Balances 258M00 258000 29019 (228,981) Fund Balances.,Beginning of Year 1 M99 10.1499 1011499 - Fund Balances,End ol"Year $ 268,499 $ 26�81499 $ 39,518 (2281981) 2020-04-21 Agenda Packet, 161 Page 369 of 421 CITY OF CHULA VISTA SCIIEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL LEASEPAYABLE FOR THE FISCAL YEAR.ENDED JUNE 301 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ $ - $ 3,1393 $ 3�393 Other revenues 34M00 34.1000 341,786 786 Total Revenues 34,000 34,000 389179 41179 Expenditures: Debt service: Principal retirement 488.18,00 292M00 290�865 11,135 Interest and fiscal charges 1011600 5400 52�511 1,1489 Total Expenditures 5901400 346,000 343,376 21624 Excess(Deficiency')of Revenues Over(Under)Expenditures (556,400) (312,000) (305,197) 61,803 Other Financing Sources,(Uses): Transfers in 3 1 2J)00 312000 290 409 (21,591 Total Other Financing Sources (Uses) 312,000 312,000 290,409 (21,591) Net Change in Fund Balances (244,400) - (I 41788)� (14i'788) Fund Balances.,Beginning of Year I]4'1�750 1 14�750 I'14,1750 Fund Balances,End of Year $ (1.29,650) $ 1.1.4,750 $ 99,962 (14,788) 2020-04-21 Agenda Packet, 162 Page 370 of 421 CITY OF CHUI..,A VISTA SCI4EDUI.,E OF REVENUES,EXPENDITURES AND CHANGES IN FUND BAI.,ANCES�-BUDGET AND ACTUAL CITY DEBT SERVICE FOR THE FISCAL YEAR ENDED IJUNE,305 2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts, (Negative) Revenues,: Use of money and property $ $ $ (41.) $ (41) Total Revenues (41) (41) Net Change in Fund Balances (41) (41) Fund Balances,Beginning of Year - - Fund Balances,End of Year (41) $ (41), 2020-04-21 Agenda Packet, 163 Page 371 of 421 CITY OF CHULA VISTA SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL .PUBLIC FINANCING AUTHORITY FORTHE FISCAL VEAR.ENDED JUNE 30,2019 Variance,with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property 167M8 1. 1670.1 TotalRevenues 1.67M81 167,081 Expenditures: Current: General government 15 M101 1 151001 10,527 41)474 Debt service: Principal retirement 3,49015001 3i49015001 3,490,001 499 Interest and fiscal charges 3,3 19,499 3i3 191499 3,3 15,6 17 3,882 Total Expenditures 618251000 6�825,000 61816,145 89855 Excess(Deficiency)of Revenues Over(Under)Expenditures (6,825,0�0,01) (6,825,0�O�O�) (6,649,0164) 1751�936 Other Financing Sources(Uses): Transfers in 61825M001 6182590001 5,606,921 (1,218,079) Total Other Financing Sources (Uses) 618251000 6�825,000 51606,921 (11218,079) Net Change in Fund Balances - - (I 1042�143) (1,01421143) Fund Balances,,Beginning of Year 6�260�550 61260�5501 6>01550 - Fund Balances,End of Year $ 6��2601,550, $ 6>01550 $ 5,1218,407 $ (110421143) 2020-04-21 Agenda Packet, 164 Page 372 of 421 CITY OF CHULA VISTA SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES-BUDGET AND ACTUAL MUNICIPAL FINANCING AUTHORITY FORTHE FISCAL YEAR ENDED JUNE 30,2019 Variance with Final Budget Budget Amounts Actual Positive Original Final Amounts (Negative) Revenues: Use of money and property $ - 679 $ 679 Other revenues 31.41139 31.4.1139 317�154 3MI5 Total Revenues 31.491,39 31.4,139 317,833 3fi94 Expenditures: Current: General government 6,000 6JW) 5,085 9,15 Debt service: Principal retirement 1,1330 0) 1,1330 0) 11330,000 - Interest and fiscal charges 1,350,131 1,350�,131 1,348,206 11925 Total Expenditures 21686,131 2,6861131 21683,291 21840 Excess(Deficiency)of Revenues Over(Under)Expenditures (2XI1992) (2XI,992) (293651458) 61534 Other Financing Sources(Uses): Transfers in 2,350�,817 2,350�,817 2,323,130 (27,687) Total Other Financing Sources (Uses) 21,350,,817 21350�1817 21323,130 (27,687) Net Change in Fund Balances (21 i 175) (21.1175) (42,328) (21,153) Fund Balances,,Beginning of Year 43fi50 43,650 43fi50 Fund Balances,End of Year 22,475 $ 22,475 $ 11322 $ (21,153) 2020-04-21 Agenda Packet, 165 Page 373 of 421 CITY OF CHULA VISTA COMBINING S,r I'ATEMENTOF NET POSITION NON-MAJOR PROPRIETARY FUNDS JUNE 30,2019 Business-Type Activities-Enterprise Funds Chula Vista B�ayfront Trolley Muni Golf Station 'Transit Fund Course To�tals Assets: Current: Cash and investments $ 87,339 $ 116,914 17,6�55 $ 221,908 Total Current Assets 8713�3�9 116,914 17,655 221,1908 Noncurrent: Capital.assets-net of accumulated dep�reciation - 25�3�5 1— - 25�3�5 1 Total,Noncurrent Assets - 25,351. - 25,351 Total Assets 871,3�39 142,265 17,655 247,259 Liabilities: Current: Accounts payable 19,860 19,860 D,cfcrrcd revenues 24 4 ,�108 21�108 Total Liabilities 21,968 21,968 Net Position: Investment in capital assets - 25,3�51 - 25'j-)1 Unrestricted 87�339 941�946_ 17,1655 1991�940 Total Net Position $ 87,,33�9 120,297 $ 17,655 $ 225,291 ---------------------------- 2020-04-21 Agenda Packet, 166 Page 374 of 421 CITY OF CHULA VISTA COMBINI`NG STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION NON-MAJOR PROPRIETARY FUNDS FOR THE FISCAI.,.,YEAR ENDED JUNE 30,2019 Business-Type Activities-Enterprise Funds Chula Vista Bayfront Muni Golf ....Trolley Station Transit Fund Course Totals Operating Revenues: Other $ - $ $ 1411747 $ 14�747 Total Operating Revenues - - 14,747 1.4,74�7 Operating Expenses: Administration and general - 157,449 - 157,449 Depreciation expense - 3�348 3�348 Total Operating Expenses - 1601,797 - 1.60,797 Operating Income(L.oss) - (160,797) 14,1747 (1 46,050�) No�noperating Revenues(Expenses): Intergovernmental - 16�3,380 - 163,380, Interest revenue 3M05 7n466 (813) 9�6,58 Total Nonoperating Revenues(Expenses) 3,00,5 1701,8�46 (813) 173,038 Changes,in Net Position 3,005 1 01,0�49 13,934 26,988 Net Position: Beginning of Fiscal Year 84,334 1101,248 3,721 198,30�3 End of Fiscal Year $ 8,71,339 1201,297 $ 17,655 $ 225,2911. 2020-04-21 Agenda Packet, 167 Page 375 of 421 CITY OF CHULA VISTA COMBINING S,r I'ATEMENT OF CASH FLOWS NON-MAJOR PROPRIETARY FUNDS FOR THE FISCAI.,.,YEAR ENDED JUNE 30,2019 Business-Type Activities,-Enterprise Funds Chula Vista Bayfront'Trolley Muni Golf Station Transit Fund Course Totals Cash Flows from Operating Activities: Cash received frorn customers and users $ - $ $ 1.47,1327 $ 1.471327 Cash received frorn/(paid to)interfund service provided - - (128,859) (128,859) Cash paidto suppliers for goods and services - 15�587 15�587 Cash paid to employees for services - (157�449) - (I 57�449) Net Cash Provided(Used)by Operating Activities - (1411862) 1814�68 (1239394) Cash Flows from Capital and Related Financing Activities: Acquisition,and construction.of capital.assets - (28,698) (28,698)_ Net Cash(Used)by Capital and Related Financing Activities (28,69�8) - (28fi98) Cash Flows from Investing Activities: Interest received 3M05 7n466 (813) 9fi58 Net Cash Provided(Used)by Investing Activities 3,0,05 7,466, (813) 9,,658 Net Increase(Decrease)in Cash and Cash Equivalents 31,005 (1 6390�94) 17,655 (142,434) Cash and Cash Equivalents at Beginning of Year 84�334 280M08 - 3641�342 Cash and Cash Equivalents,at End of Year $ 87,339 $ 116,9�14 $ 17,655 $ 2211908 Reconciliation of Operating Income to Net Cash Provided(Used)by Operating Activities: Operating income(loss) $ - $ (160,797) $ 14.1747 (146,050) Adjustments to reconcile operating income(loss) net cash provided(used)by operating activities: Depreciation 3.1348 - 3�348 (Increase)decrease in accounts receivable - 132,580, 13�2,580 Increase(decrease)in acCOUnts payable 3480 - .1 135480 Increase(decrease)in due to otherfunds (128,859) Increase(decrease)in retentions payable 2.1 1 O�7 - 21J07 Total Adjustments 18,9�35 3,721 22,656 Net Cash Provided(Used)by Operating Activities $ $ (141,862) $ 1814�68 $ (1231394) 2020-04-21 Agenda Packet, 168 Page 376 of 421 CITY OF CHULA VISTA COMBINING S,r I'ATEMENTOF NET pOSITION INTERNAL SERVICE FUNDS JUNE 30,2019 Governmental Activities-Internal Service Funds Fleet Technology Workers Management .....Replacement Compensation Totals Assets: Current: Cash and investments $ 21504�165 $ 2,650 $ 4�764,167 7,270,982 Receivables: Accounts 3,084 - - 3,084 Restricted-, Cash with fiscal agent - - 324J25 324�125 Total Current Assets 2,5071249 2,650 5,,088,292 7,,598,191 Noncurrent: Capital assets-net of accumulated depreciation 364,921 364,921 Total'Noncurrent Assets 364,921 - 364,921 Total Assets 2,872,170 2,650 5�088,292 7�963,112 Deferred Outflo�ws of Resources: Deferred items,related to pensions 3101809 - - 3 10109 Deferred items,related to OPEB 41�463 41�463 Total Deferred Outflows of Resources 315,272 - 315�272 Liabilities: Current: Accounts payable 3 14�228 35,873 350,101 Accrued liabilities 31,1788 - 3 1 Due to other funds 47111764 471 Accrued cornpensatcd absences 11,847 - 11,847 Total Current Liabilities 829,627 35,873 8,65,500 Noncurrent: Accrued compensated absences 28�404 - 281,404 Net pension.liability 21765,1149 217651149 ,rotal OPEB liability 126,086 126,086 Total Noncurrent Liabilities 29919,639 - 2,,919,639 Total Liabilities 3,749,266 359873 3,785,139 Deferred Inflows of Resources: Deferred items related to pensions 14419�91 - 1441991 Total Deferred Inflows of Resources 144,991 1,44,991 Net Position: Investnient in capital assets 364i921 - 364,921 Unrestricted (1,071,736,) 21fi50 5,052,419 3,,983,333 Total Net Position $ (706,815�) $ 2,650 $ 5�052,419 $ 4,3�48,254 2020-04-21 Agenda Packet, 169 Page 377 of 421 CITY OF CHULA VISTA COMBINtNG STATEMENT OF REVENUES,EXPENSES AND CHANGES IN FUND NET POSITION INTERNAL SERVICE FUNDS FOR THE FISCAI.,.,YEAR ENDED JUNE 30,2019 Governmental Activities-Internal,Service Funds Fleet 'Technology Workers Management .....Replacement Compensation Totals Operating Revenues: Interdepartmental charges $ 3,465,390 $ 5,015,655 8,48 1,0�45 Other 258,811 109,,378 368,189 Total Operating Revenues 317241,2�O 1 5,12510�33 81849�,234 Operating Expenses: Administration and general 3,143,255 3,7 3 8,5 18 6,881,773 Depreciation expense 243,078 - 243M78 Total Operating Expenses 3,386,333 31738�518 7J.24�851. Operating Income(L.oss) 3371868 1,386�515 1.1724�383 No�noperating Revenues(Expenses): Interest revenue 018 17 2111860 3 1.1495 Gain(loss)on disposal of capital assets 1021�283 - - 102.1283 Total Nonoperating Revenues(Expenses) I'l,11,901 17 21,860 133,778, Changes,in Net Position 4491769 17 1 1408�375 1.1858J61 Net Position: Beginning of Fiscal Year ....... 1.0 56,584) 2,633 3,644,0�44 2�490,,0,93 End of Fiscal Year $ (7061815) 21650 $ 5,0521419 $ 4,348,254 2020-04-21 Agenda Packet, 170 Page 378 of 421 CITY OF CHULA VISTA COMBINING S,r I'ATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE FISCAI.,.,YEAR ENDED JUNE 30,2019 Governmental Activities Internal Service Funds Fleet Technology Workers Management .....Replacement Compensation Totals Cash Flows from Operating Activities: Cash received from/(paid to)interfund.service provided 4�246�,229 5,125,033 $ 9,3�71,262 Cash received from/(paid to)suppliersfor goods and services (124,912) (124,9 12) Cash paid to employees for services (3,516,434) (3�738,,518) (7,254,952) Net Cash Provided by Operating Activities, 729,795 11261�603 1,1991�398 Cash Flows from Capital and Related Financing Activities: Proceeds from sales of capital assets 102�283 - 102�283 Net Cash Provided by Capital and Related Financing Activities 1,02,283 - '1025283 Cash Flows from Investing Activities: Interest received 9,618 17 21,860 31 Net Cash Provided by Investing Activities 9,618 17 21,1860 31,5495 Net Increase in Cash and Cash Equivalents 841,696 17 11283,463 29125,176 Cash and Cash Equivalents at Beginning of Year 1,6�62,469 2,633 3,804,829 5,469,931 Cash and Cash Equivalents at End of Year $ 2,504,165 $ 2,650 $ 5,088,292 $ 7,,595,107 Reconciliation of Operating Income to Net Cash Provided by Operating Activities: Operating income $ 337,868 $ $ 1,386,515 $ 1,724,3�83 Adjustments to reconcile operating income net cash provided by operating activities: Depreciation 2431078 - 2435078 (Increase)decrease in accounts receivable 7,958 7,958 (Increase)decrease in deferred outflows,from pensions 3 01 J)3 7 301,037 (Increase)decrease in deferred outflows from OPEB (3,,195) (3,195) Increase(decrease)in due to otherfunds 471�764 - 471,764 Increase(decrease)in accounts payable 4253,06 (1,24,912) (82,606) Increase(decrease)in accrued liabilities 100 - 100 Increase(decrease)in compensated absences (13,480) (13,480) Increase(decrease)in net pension liability Increase(decrease)in total OPEB liability 95798 91�798 Increase(decrease)in deferred inflows from pensions, 61,614 - 6 1 lfi14 Total Adjustments 391,927 (1249912) 2679015 Net Cash Provided(Used)by Operating Activities $ 7299795 $ 1,2619603 $ 1,,991,398 2020-04-21 Agenda Packet, 171 Page 379 of 421 CITY OF CHULA VISTA COMBINING STATEMENT OF NET POSITION ALL AGENCY FUNDS ,JUNE 30,2019 Flexible Special Spending Assessment Miscellaneous Account District Deposits Totals Assets: Pooled cash and investments $ 654,915 $ 81221 103 $ - $ 8 876798 Receivables: Accrued interest - - 1,1431 1�431 Restricted assets: Cash and investments - 1211553�334 12�5531�334 Cash and investments with fiscal agents - 3219081488 - 321M)8 488 Total Assets 6541915 41.11.301371. $ 12�5541765 54,340,051. Liabilities: Accounts payable $ - 15,161 118,1727 133.08 Unearned revenues 14�162 - '11,431 15.1593 Deposits payable - - 12�43407 12543407 Due to external parties/other agencies 6�4O�1753 415115�21 0 - 415755�963 'Total Liabilities, $ 654�915 4111301371 12,554,765 5413401051 2020-04-21 Agenda Packet, 172 Page 38,0 of 421 CITY OF CHULA VISTA COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES ALL AGENCY FUNDS FOR THE FISCAL YEAR ENDED JUNE 30,2019 Balance Balance July 1,2018 Additions Deductions June 30,,2019 Flexible Spending Account Assets: Pooled cash and investments $ 50409 $ 111696,192 $ 111545�976 $ 654M,5 Total Assets $ 504,6,99 $ 1,696j,92 195415�976 $ 654�,91.5 Liabilities: .Accounts p�ayab,le $ - $ - $ - $ Accrued liabilities 5,885 13 5,898 - Unearned revenues 14,162 - - 14�162 Due to external parties/other agencies 484,652 840�,534 684.�433 640�,753 Total Liabilities 504,699 840�1547 690�331 654�9 15 Special Assessment District Assets: Pooled cash and investments $ 8,528�926 1511639�797 $ 15.1946,1840 8�221 03 Restricted assets: Cash and investments,with fiscal agents 431�5221543 1 OMMM56 201170011 111 32�908AS Total Assets 529051,469 25,725,853 $ 36,646,951 $ 41 j 3 0,3 7 1, Liabilities: Accounts payable $ 2M8 $ 25�319 $ 13,1076 $ 15J61 Due to external parties/other agencies, 52,048,551 19,993,835 30,927,176 41�115,210 Total Liabilities $ 52,051,469 $ 20�,0,19,154 $ 30,940�,252 $ 411130,371 Miscellaneous Deposits Assets: Receivables,: Accriled interest $ 1431 $ - $ Restricted assets: Cash and investments 11�7675185 20MI 15133 19.122411984 12�553�334 Total Assets $ 11,768,616 $ 2010111 133 19,2241,984 121,554,765 Liabilities: Accounts payable $ 4255655 $ 1592�550 11899�478 11,8727 Unearned revenues 1�431 - - 1,431 Deposits payable 11�341 1�530 11617�397 524,1320 1243407 Total Liabilities $ 11,768fi.16 $ 3120�9,,947 2,423,798 121,554,765 Totals-All ALxency Funds Assets: Pooled cash and investments $ 9,033,625 17,335,989 17�492,816 8,876,798 Receivables: Accrued interest 1�431 - - I T431 Restricted assets: Cash and investments 11 17671'�185 20T01 I J33 19�,224�984 12�553�334 Cash and investments,with fiscal agents 43,522,543 1 O�,0 8 6,0 5 6 20,700�,111 32�908,488 Total Assets $ 6413241784 $ 47,433,178 57,417,911 S 541340�051 Liabilities: Accounts payable $ 428,573 $ 1.16 17,869 11912,554 133,888 Accrued liabilities 5,885 13 5,898 - Unearned revenues 15,593 - - 15,,593 Pass-through payables - - - Deposits payable 11,341,530 1��617,397 524,320 121434,607 Due to external parties/o�ther agencies 52'�533'�203 20�834�369 3 1�61 109 41�755�963 Total Liabilities $ 64,324,784 $ 24,0,6,91648 $ 34,054,,381 $ 54,340,,,051 2020-04-21 Agenda Packet, 173 Page 38,1 of 421 2020-04-21 Agenda Packet, 174 Page 38,2 of 421 CITY OF CHULA VISTA Statistical. Section 06�/30 This part of the City of Ch�ula Vista's com�pr,ehensive annual financial report presents cletailecl information as a context for understanding what the information in the financial statements,, note disclosures, and required supplementary information says about the city's overall financial health. Table of Contents Page No. Financial. Trends 176482 These schedules contain, informatio,n to help the reader understand how the city"s f'inia�ncia�l performance and we,ll�-be,ing have changed over time. Revenue Capacity 184-187 These schedules contain, information to hel�p the reader assess the factors affecting the city's,a�bility to generate, its property and sales taxes. Debt Capacity 188-194, These schedules present information to he�lp the reader assess,the affordability of the city"s current levels of outs,ta�nding debt a�nd the city"s ab�ility to i's,sue additional debt in the future. 0 Demographic and Economic Information 195-19�7 These schedules offer demographic and economic indicators to help the reader understand the environment within which the city's financ,i'al activities take p�lace and to, help m�ake comparisons over time and with other governments., Operating Information 198-1199 These schedules contain, in�formatio,n about,the city's operations a�nd resources to help,the reader understand how the city"s fin�a�ncia�l information relates to the services the city provides and the activities it performs., 2020-04-21 Agenda Packet, 175 Page 38,3 of 421 CITY OF CHULA VISTA Net Positition by Component .Last TenFiscal Years (accrual basis of accounting) 2010 2011 2012 2013 201.4 Governmental activities: Net investment in capital assets $ 634.�3�771842 $ 6�34�409�385 $ 655J821727 $ 626476148l $ 649�314MI6 Restricted 49��1931256 47J68�636 221929i585 21081309 1071J,,06�257 Unrestricted 73�9161496 72�730��79�6 80201724 11.106.1462 22�522443 ................................................................................................................................................................................. .............................................................................................................................................................................. .............................................................................................................................................................................. ........................................................................................................................................................................ ......................................................................................................................................................................................... Total.governmental activities net position. 757�487�594 754�308�817 76�717331036 760�25 1�252 778�942�716 Business-type activities: Net investment in capital assets 15213�84i420 1461)5501585 14012481319 134166 1 1254 1,36�15 13M)268 Restricted - - - - Unrestricted 74�3851651 801214�208 861521 i327 93A11745 97�3931fi40 ................................................................................................................................................................................. .............................................................................................................................................................................. .............................................................................................................................................................................. ........................................................................................................................................................................ ......................................................................................................................................................................................... Total business-type activities net position 2261770i071 226!764�793 2261769i646 228,0621999 233A61908 Primary government: Net investment in capital assets 7861762>2 780�M)9591970 7951431.1046 7611137i735 785�827M)284 Restricted 49,51931256 47J68fi36 2219291585 2 118 8 813 O�9 1,071106M)257 Unrestricted 1,481302i 147 152!94504 1761142iO5 1, 205�288120�7 1 19M61083 ................................................................................................................................................................................. .............................................................................................................................................................................. .............................................................................................................................................................................. ........................................................................................................................................................................ ......................................................................................................................................................................................... Total primary government net position $ 98412571665 $ 981 M73161 0 $ 994150202 $ 988,314125 1, $ 1 M 1 2M9fi24 2020-04-21 Agenda Packet, 176 Page 38,4 of 421 2015 20�16 2017 2 01,8 2019 643J74J60 672�940IM2 1�O�311902�782 963,�595�553 997�561�287 12946005 1251439��323 128�I 14X0 1431958.�910 I 67�223�184 (245,432,296) (222,570,459,) (222,843,737) (139,744,867) (.139,394,302) .............................................................................................................................................................................. ............................................................................................................................................................................................. .............................................................................................................................................................................................. .............................................................................................................................................................................................. 5271202�529 57508�876 9,3 7�173 41.5 967091596 1.1�025�39OJ69 134!3681634 1351989�.�851 3311J991513 327071650 3221�0721495 5J41�430 201�45 1, 21593403 - 71�945141 1 67i970�476 721366�978 781539iO54 9039fi32 .............................................................................................................................................................................. ............................................................................................................................................................................................. .............................................................................................................................................................................................. .............................................................................................................................................................................................. 2111)4551475 20�6i763�778 406m)1591894 4061226.1704 412�9121�127 777�5421794 808.192903 1�363�1021295 1 L31916331782 134021095 1,28,�242�774 13017071�773 143195 8.�9 10 1671223�184 (173,4861885) (1 54,599�,9�83) (150,476,759) (6 1,20�5,813) (4 8,5 5 4,6 7 O�) .............................................................................................................................................................................. ............................................................................................................................................................................................. .............................................................................................................................................................................................. .............................................................................................................................................................................................. 738fi581004 $ 782.1572fi54 $ 1 134313331309 $ 11374M36�300 $ 1�43�81302�29�6 2020-04-21 Agenda Packet, 177 Page 38,5 of 421 ,,ITY OF CHULA VISTA Changes in Net Position Last Ten Fiscal Wars 2010 201l 2W2 2013 2014 Expenses: Govcrinnenial activities: Genera l governinew $ 51,136,412 S 46,457,112 $ 22,508,977 S 33,652,891 $ 25,386,867 Public safety 74,008,767 75,664,246 75,93�,086 77,821,520 74,896,803 Conitnunily Developtneni Conitnunily Services public works 69,524,903 7�,857,158 76,,458,061 6,9,297,402 63,312,155 Parks and recreation 7,849,907 6,995,489 7,310,312 5,865,192 6�,118,3,51 I..,.ibrary 4,826,602 4,509,999 4,l 85,624 4,224,568 4,092,263, Transit - - 6,3,021 14,56�O - Interest oil long-term debt 11,217,753 1�,538,707 8,90�4,275 6,698,509 7,287,461 Tol a l governinewal activities expenses 218,564,344 217,022,71 l 195,36�,356 l 9 7,5 74,642 181,093,900 Business-type activities: Transit 7,571,898 7,0�75,998 7,050,673 6,997,488 6,875,214 Bayfi-ont Trolicy Station 94,802 91,788 91,942 92,843 6 1,823 Sewer funds 29,240,616 30,245,584 30,524,851 30,773,712 26�,046,1 75 Sewer DlFs 126,0,19 123,629 129,351 122,927 129,279 Developtnent Services Fund - - 4,730,599 5,7 l 7,312 6�,113,133, ChLda,Vista Mini Golf'Course CV Elite AthleteTraining Ctr Interest oil long-terni debt - - - .................................................................................................... 'Total bLlShless-type activities expenses 37,033,335 37,536,,999 42,527,416 43,704,282 3 9,2 2 5,6�2 4 .................................................................................................... ...................................................................................................... .................................................................................................. Total primary government expenses 255,597,679 254,559,710 237,888,772 241,278,924 220,3 19,524 .................................................................................................... ...................................................................................................... .................................................................................................. Program revenues: Governmental activities: Charges fo�r services: General governinent 32,419,505 29,785,079 5,955,849 5,795,838 8,76�7,069 Public safety 8,833,813 7,989,893 8,658,579 8,893,631 10,198,058 Community Development Public works 28,761,170 33,378,070 32,767,201 35,758,780 30,495,980 Parks and recreation 2,559,668 3,599,653 3,051,842 7,631,696 5,292,433 Library 505,044 967,90�8 840,258 1,6,66,76,5 1,078,592 Operating grants and contributions 17,984,120 31,976,818 21,780,868 30,935,863 29,456,557 Capital grants and contributions 23,711,994 4,781,625 4,283,855 2,936,,133 1,921,554 .................................................................................................... ...................................................................................................... .................................................................................................. 'Total governmental activities program revenues 114,775,3 14 112,479,046 77,338,512 93,6,18,712 87,210,243 .................................................................................................... ...................................................................................................... .................................................................................................. BLISiness-type activities: Charges for services: Transit 3,335,334 2,534,385 2,671,538 2,841,619 2,672,231 Sewer ftinds 36,284,081 32�257�256 32�571,135 35�0 11�268 33,190,6�60 Sewer DlFs 166,303 443,599 174,667 6�45,015 268,092 Development Services Fund - - 4,174,657 6,654,261 6,338,495 Operating grants and contributions 3,357,566 3,431,988 3,524,426 3,0�95,626 3,800,358 Capital grants and contributions - - - - - 'Total business-type activiti" prograrn revenues 43,143,284 38,667�228 43,116,423 48,247�789 46,269,836 'Total primary government prograrn revenues 157,918,598 151�146�274 120A54,935 141�8W501 133,480,079 Net revenues(CXj)CnSCS): Governmental activities (103,789,030) (1 O�4,543,665) (118,022,844) 1 O�3,9 5 5,93 0) (93,,8�83,6,57) Business-type activities 6,109,949 1,13 O�,229 589,0�07 4,543,50�7 7,044,212 Total net revenues(expenses) ('97,679,081,) 1 O�3,413,43 6) Q 17,433,8371) (�99,412,423) (8�6�,8�3,9,445) General reVCnUCS arid other changes in no asscts� Governmental activities: Ta,Xes: Property taxes 41,798,577 39,437,025 49,721,604 45,146,022 45,26�6,172 Sales tax 23,674,601 26,702,443 27,275,753 28,,627,785 29,,171,174 Other taxes 21,927,677 17,495,387 16,431,529 18,,966,240 32,145,209 Investment inconle 5,744,616 9,108,662 3,615,266 866,8,61 1,944,988 Other general revenues 7,581,794 5,193,653 1,530,568 2,356,8,02 686,0�54 MiSCCIlarICOLIS - - - - - Gain on Sale ol"Capital Asset Transf6-s 3,473,571 3,437,718, 4,195,190 3,861,417 3,551,004 Total general revenues and.transfers 104,200,836 101,364,888 102,769,910 99,825,127 1 12,764,6�O 1 1_,'xtraordinary gain - - 28�677,153 - - Total governniental activities 104,200,836 1 O�1,364,888 13 1 A47,063 99,825,127 1 12,764,6�O 1 Business-type activities: Investnient:income 1,785,660 1,288,478 1�273,689 261,354 1,505,052 Miscellaneous 9249,893 1,013,733 2,337,347 349,90�9 845,6�50 Gain oil Sale ofCapital Asset Transfers (3A73,57 1 (3,437,718) (4,195,190) (3,861,417) (3,551,004) 'Total busfiless-type activities 7,561,982 (1,13 5,5 07) ('584,154) (3,250,154) (1,200,302) 'Total primary government 111,762,818 1 O�0,229,381 130��862,909 96,574,973 111,564,299 Changes In net Position Governmental activities 411,806 (3,178,777) 13,424,219 (4,130,803) t 8,880,944 Business-type activities 13,671,931 (5,2 7 8) 4,853 1,293,353 5,843,910 Total primary goveninient 14M3,737 S (3,184,055) 13,429,072 S (2,837,450) 24,724,854 2020-04-21 Agenda Packet 178 Page 38,6 of 421 2015 2016 2017 2018 2019 36,69,3,953 S 25,564,8,24 $ 35,375,230 S 29,3,11,449 $ 27,922,521 81,002,999 87,749,418 94,716,683 106,802,13(".) 1 11,269,341 1,974,046 1,552,750 18,617,269 11,15 3,109, 12,837 5,632 14,9�90 - 62,454,130 6�7,910,401 68,885,9 18 72,192,449 57,563,725 6�,441,907 6,834,240 6,875,635 9,553,39,2 14,633,191 3,90�6,984 3,997,677 5,0 18,8 78 1,542,733 1,007,869, 6�,776,6�35 6,073,434 4,673,047 7,718,906 6,740,877 -----197,289,445 20�0,109,672 2 17,113,131 245,738,328 230,290,633 4,807,985 86,5 12 39,,594 13,008 160,,797 59,863 - - 27 - 31,615,457 25,234,891 32,179,875 34,857,066 36,815,795 120,197 1,1 46,8�3 8 8,305 34,547 49�5,,865 5,996,109 5,741,60�O 6,655,654 10,683,709 10,755,535 27,092 - - 449,028 676,260 59,5,579, ............................................................................................... ............................................................................................... ............................................................................................... ............................................................................................ 42,599,611 3,2,209,841 39�,359,548 46,264,617 48,823,571 ...................................................................................................... 239,889,056 232,319,5 13 256,472,679 292,002,945 279�,114,204 ...................................................................................................... .................................................................................................... ................................................................................................... ................................................................................................... 5,302,277 6,468,756 12,317,921 8,562,792 5,004,895 5,068,166 11,764,603 1 1,99�7,221 178,674 5,865,227 730,197 771 t603 1 7,9�20,527 4,701,195 3 1,439,700 24,218,733 32,59�8t 199 23,487,119 23,562,841 413,921 10,6�83,649 8,221,019 1,490,236 2,134,964 1 6�4,8 3 2 1,943,416 1,575,837 872,352 877,744 - - - 21,246,015 20,686,617 - - 33,859�,885 27,052,711 ............................................................................................... ............................................................................................... ................................................................................................... ................................................................................................... 42,388,896 55,809,354 67,481 t80O 107,617,600 89�,886,194 ...................................................................................................... .................................................................................................... ................................................................................................... ................................................................................................... 1,503,262 - - - 36,039,238 35,775374 36,289,9�30 37,870,947 44,213,351 16�6,333 239��143 11 1,9�07 1,201,669 1,265,579 - 6,546,936 7,29�1,037 10,596,287 9�,317,298 6�,118,566 - 104,89�9 163,380 43,827,399 42,561 A53 43,69�2,874 49,773,802 54,959,608 86,216,295 98,370M7 111,174,674 157,391,402 144,845,802 (I 54,90�0,549) (144,300�,3 18) (149,631,331) (138,120,728) (140,404,439,) 1,227,788 10,3,51,612 4,333,326 3,509,,185 6,136,037 (153,672- 1 761) (13,3,948,706) (14-5,2981,005) 134,6 11,543) (1 34,26�8,402) 47,485,292 50,136,856 53,248,196 56,512,850 59�,841,9,72 41,8�83,924 3,3,3,17,380 36,46�9,033 57,541,043 73,187,780 23,,225,498 24,463,,26,2 24,101,777 32,496,156 35,204,174 4,216,186 6,233,,144 2,954,403) 5,6�52,66�3 12,243,685 12,921,129 1,0�34,027 8,9�70 - 27,88�2 3,36�,66,1 1,677,271 12,6�75,502 13,96�3,434 - 102,283 3,848,746 2,799,555 4,180,778 4,170,702 4,339,276 133,608,6�57 11 8,3�20,885 122,640,428 169,048,916 198,882,604 133,608,6�57 11 8,3�20,885 122,640,428 169,048,916 198,882,604 657,343 1,3�57,938 322,527 1,155,739 4,575,679 2,789,595 524,616 198,847,750 414,69�6 252,213 115,703 - 60,770 (3,848,746�) (2,799,555) (4,180,778) (4,170,702) (4,339,276) (401,808) (9 17,00 1 19 5,t 05,202 (2,600,267) 549,386 133,206,849 1 17,403�,884 3 17,745,630 166,448,649 199�,43 1,9�90 ('21,291,892) (25,979,433) (26,99�0,9,03�) 30,9�28,188 58,478,165 825,980 9,434,611 199�,438,528 9�08,91 8 6,685,423 (20,46�5,912) (16,544,822) $ 172,447,625 $ 3 1,837,t 06 65,t 63,588 2020-04-21 Agenda Packet 179 Page 38,7 of 421 CITY OF CHULA VISTA Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual.basis of accounting) Fiscal Year 201.0 201.1 201.2 201.3 201.4 General fund: Nonspenclable $ - $ IL258J.50 $ 8�799MM $ 7�481 M79 $ 714241,812 Restricted - 1271883 - 750i951 - Committed - 711781838 4�375�207 2129808 612151,601. Assigned - 512981536 218951545 6�648i922 4.18071,244 Unassigned - 11.�876�992 11.�9691280 14�51 11252 Reserved 19.14781496 - - - Unreserved 13,7 0 313 O�4 Total general fund 33.1181180�O 351.1740�1399 281039M58 l7J79i040 32.19581909 All other governmental funds: Nonspendable - 21�66%849 30�763�746 $ 29�774�472 $ 23��53,7�524 Restricted - 1 095944�736 83.143%558 91,11521341, 1,071106�.1257 Committed - l7X0,1613 'I 2M2�477 10161701 1 077�564 Assigned - (2,402,991) - - Unassigned - (5%092,342) (37,420,734) (26,487�363) (40�45 1,�233) Reserved 61185,2140,4 Unreserved,reported in: Debt service funds (56,280�,718) - C,apItal projects-funds 58,5951303 Special revenue funds 2713341131 - - Total all other governmental funds $ 91,1501�120 $ 87,48%865 $ 8%6251047 $ 105M57J41 $ 100,�8701 112 in 2011, the ci�v implemented GASB'Statement 54. Committedfind balance totaled$46.3 millionfi)rspec�fic purposes pursuant to contstraints imposed ky )rmal action o 'the City Council and remains binding unless removed in the same manner infiscalyear 2019. 2020-04-21 Agenda Packet, 180 Page 38,8 of 421 Fiscal Year 201.5 20 1.6 20 1.7 201.8 201.9 7�41902 L5271055 7�363141.3 7�67613�50 7�57806 7021021 641.71095 5�93800 64�147�929 46�37Oi754 408.1124 4�3'1 51568 8.1526,339 11061874 41�546�738 1.61,412�879 25J.32�939 201020�61.3 24�51.2�363 23�378i859 361122.1026 37.13921657 41.1848�1965 108.1203�5,16 11 81874�437 7�419,02 1�527,1055 129.�4641688 - 31�385120,0 82.15041055, 89.1463�478 17�1 86�197 6417,1095 345,1095 - - 4.1688,124 29.1448�1507 - 1 O��891 641202 (20,803,239) 2 5�13 2,193 9 (422,149) (4�433) (21147fi43) 137,954,772 62�525,596 3 1�308,146 $ 82,5 1 O�,513 87�3801037 2020-04-21 Agenda Packet, 181 Page 38,9 of 421 CITY OF CHULA VISTA Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) Fiscal.Year 2010 201.1 20.12 201.3 201.4 Revenues: Taxes $ 87>3�934 $ 88�878�6�64 $9618681086 $ 82�4501711 $106�8251885 Licenses and permits 212741964 207�1.50 1,2531806 1,436�828 1�3 5 51342 Fines andforfeitures, 3,.124,02 1. 2M348�565 2�0651246 1,639�781 1051268 .Investment income 612991595 Ml6fi24 5�0771920 2�929�237 4081387 Developerfees, I I1700M99 1. 1 6��498�744 13�9661814 21�7421856 9�51.51921 .Intergovernmental 411965�596 48�1 77�707 21.1861�0 11. 40�953�1981 28fi47�410 Chargesfor services I 11877m763 1 1,743�505 20N71330 23�4401813 20�748�232 Contriub�utions Other 3 1 M.8�308 28�1.63�311 1313821050 14.1521�818 14�896�960 ........................................................................................................................................................ .............................................................................................................................................. ......................................................................................................................... ...................................................................................................................................... ...................................................................................................................................... Total revenues 1961425i 1,72 207114141270 1751382i263 189�1161025 188,3731405 ......................................................................................................................................................... .............................................................................................................................................. ......................................................................................................................... ...................................................................................................................................... ...................................................................................................................................... Expenditures Current: General government 451966�934 39,701,396 23,1833M 1 25�5441079 29�3411881 Public safety 7210W790 70,6,93,779 711917�414 73J77 912 76457979 Public works 45177805 48,056,229 471911�1 O�5 481416 477 40 8,9�4 934 Community Development Parks and recreation 5�255�812 4�O3�O�767 41)2151643 3�471�548 3�59�01441 Library 4�56,3�849 3�870fi46 3fi721661 3�24100 3�8,101004 Capital outlay 271628J48 34�215M21 16118208 21J44 133 15 347 3�38 Debt service: Principal retirement 71�301 362 7911 995 81,423, 156 51)113992 54040855 Interest and fiscal charges 1 11585�816 11,094,106 91'229�775, 6�8,18�788 7�8,501448 Bond issuance cost - - - - Payment to refunded bond escrow agent Total expenditures 2201161�376 219,573,939 185,3,85,653 1861�928 589 231 333 880 Excess(deficiency)of revenues over(under) expenditures (19i3131534) (23,736,204) (10031390) 2J87'1436 (42,9601,475') Other financing sources(uses): Transfers in 501,502�425 61,296,934 56,19891583 33NO'1786 20J 13,11296 Transfers out (46158903) (57,815,981) (53,551,865) (32,6381,610) (16,5511,879) Proceeds from long-term debt 6651884 29,355,0�00 421286 3.�963'11 04 2.�1741,204 Proceeds from bond sale 21,162500 207,372 - - - Payment to escrow agent trust 15 111101 0 00) (16,71 0,0�OO�) Bond premiurn/(bond discount) (579,161) (925,872) Capital Leases Contribution to Agency Fund, Proceeds from sale of capital assets - - 911630,1000 Total other financing sources(uses) 4,0'1514�345 15,407,453 13 111101004 5.�22511280 5.�73511621 Extraordinary item-, Forgiveness of debt - - - Loss on dissolution of the Chula Vista Redevelopment Agency (3,19 1 11040) Total extraordinary itern, - (3,19 1 11040) Net change in fund balances $ (8,799,189) $ (8,328,751) $ 3,106,614 $ 4,221,,676 $ (37,2241,854) Debt service as a percentage of noncapital expenditures 9.0% 9.7% 10.5% 6.8% 28.5%, 2020-04-21 Agenda Packet, 182 Page 390 of 421 T_* .riscal Year 2015 201.6 201.7 201.8 2019, 112,�5941�714 $1101452�9�62 $1211462.04 $ 139�296422 $ 15718241296 L3221254 11328.M20 11290�9�68 1,0 1.�980, 21367J65 2�2801880 11942.�656 1180�5�508 2M35�823 2121.8i235 5M41602 7100�6.�545 31766�457 5,02�112 1,2�21.2�190 74841592 1.1�657,�266 8�810J.78 23�506�237 i,068�217 261409��294 2308M74 231427460 25�522�1 9�9 26409�517 20, 1 124 22647645 26662094 23 630 103 24925513 11 1.76M64 1,5�244�658 15, 194 1.5 839 288 23 529 357 2 1. 1.32 605 1,7 41.9 459 ...................................................................................................................................... ...................................................................................................................................... .................................................................................................................................................. .................................................................................................................................................. 1,91�1 80fi54 194.1742456 210.1754fiM 253�5831545 27609.1250 ...................................................................................................................................... ...................................................................................................................................... .................................................................................................................................................. .................................................................................................................................................. 264135901 2907�838 33�2185003 23,723,205 23,1452�836 W2355099 83�637�644 87�7315136 95,424,528, 10 1�5 80�642 414595698 49�775J41 45J355590 37,856,917 291974482 1�974M46 2M30�654 171601�341 101860�838 3�746�349 4M59�567 412465605 4�276.1366 11 120�8�23 7 3�625�9�49 3�969�307 417215120 3��943.10�63 3�19485154 22�216553�O 12�976408 19J725666 40,843,898, 491253�675 5,�340�205 34�98M37 611105055 11�898�280 11 1760�783 6�678J44 6�437�941 511945264 8�382.1476 81023540,3 422�751 21k73 892 —1 K715,875 227�321�380 2 1 O�233�9�85 243�95OM74 250M63M50 I i464,779 ('32,578,9�24) 520�641 91)6331)471 261626i2OO 304785465 21�708446 271905�430 49,858,764 20,1965�197 (27,503,760) (18,897,272) (251949�256) (47,177,986) (16,625,921) 2�12 1,�500 578�224 377487 45,�920,000 - 34�33000 34,485,0,00 (7113500) (36,860�,637) - 3i537J I I 2.>2493 2�836,273 1,285,0,53 7591697 54�553,316, 31389�398 31�791 154 4,426,467 5,1098�973 $ 561018M95 $ (2 9,18 9,5 2 6) $ 32,311,795 $ 14,059,938 $ 31,725,173 7.4% 20.7% 6.2% 9.3% 9.5% 2020-04-21 Agenda Packet, 183 Page 391 of 421 CITY OF CHULA VISTA Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years, 11 t Redevelopnient Agenc.y SUCCessor A Telicy . .... ..... ................... ..............................................................................................................................................................................................................I............................................................e.......................... ....................................................................... ...................................................................................................................................................................................... Fiscal Year Taxable Taxable Total Ended Less- Assessed Less. Assessed DirectTax 2 3 June 30 Secured Urisecured Exemptions Value Secured Unsecured I.."xeniptions Value Rate 20 1 Ct 22,168,954,872 610,945,054 (682,909,923) 22,096,990,0�03 1,09�4,004,250 131,944,88,5 - 1,225,949,135 0.1438% 2011 21,341,397,693 577,214,653 (683,167,117) 21,235,445,229 1,042,561,9018 130,433,921 - 1,172,995,829 0.1438% 20�12 21,280,088,193 613,792,400 (739,917,158) 21,153,963,435 1,054,772,168 157,330,744 - 1,212,102,9 12 0.1438% 20�13 21,173,362,084 565,751,305 (79,6,316,481) 20,942,796,908 1,045,060,350 97,973,502 - 1,143,033,852 0.1438% 20 14 21,922,151,025 555,819,631 (8,31,701,747) 21,646,268,,909 1,150,98,5,6019 104,386,6�94 - 1,255,372,303 0.1438% 20�15 23,413,030,465 542,342,957 (8,6�4,933,069) 23,090,440,353 1,142,294,084 10 1,995,779 - 1,244,289,863 0.1438% 20 16 24,754,131,895 5,49,312,047 (8�47,445,,3 0 1) 24,455,998,641 1,209,28�6,482 117,99 1,956 - 1,327,278,438 0.143 8(Yo 20 17 26,210,551,258 543,505,450 (977,982,1,99) 25,776,074,509 1,246,6,59,237 107,79�4,167 - 1,354,453,404 0.143 8%0 2018 27,801,823,181 559,678,820t (1,0019,91 O�,41 0) 27,351,591,591 1,3 9�6,009�,9 H 11 2,713,6�3 8 - 1,50�8,723,549 0.1438% 20 19 29,390,231,1,10 592,221,286 (1,118,567,598) 28,863,884,798 1,554,756,256 125,69�2,898 - 1,680,449,154 0.143 8(N I Redevelopment Agency dissolved as of January 3 1,2012. Successor Agency formed I",ebruary'1,2012. 2 Includes redevelopment increnientaI valuation. 3 Redevelopment Agency/Successor Agency exemptions are included in City exemption data as they are not reported separately. NOTE: In 1.978 the voters of the State of California passed Proposition 1.3 which linaited property taxes to a total naaxii,.-num rate of I(Vo based upon the assessed value ofthe property being taxed. Each.year,the assessed value of property may be increased by an"inflation factor"(linaited to a rnaxinaum.fi.icrease o.172%). With.few exceptions,propetly is only re-assessed at the time that it is sold to a new owner. At that point,the new assessed value is reassessed at the purchase price of the property sold.The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subJect to the limitations described above. Source:� County of San Diego Property Tax Set-vices Valuation Report,Tax Rate by Tax Rate Area,ACAP 345B 2020-04-21 Agenda Packet 184 Page 392 of 421 CITY OF CHULA VISTA Direct and Overlapping Property Tax Rates (Rate per$10�O of assessed value) Last Ten Fiscal Years 2010 2011 20�12 20 1.3 20 1.4 20 1.5 2016 20.1.7 20.1.8 2019 ........................................... ........................................... ............................................ ............................................ ............................................ ............................................ ............................................ ............................................ ........................................... City Direct Rates: City basic rate 0.1438 O�.1438 O�.1438 O�.1438 0,.1438 0.1.438 0.143 8 0.1.438 0.1438 0.1.438 OvertappingRates: Chula Vista Elementary School 0.0251 O�,O�261 0.0259 0.0253 0.0463 0,0�475 0.04301 0.04323 0.0359,4 0.03917 District Bonds Sweetwater Uni.onHigh School. 0.0558 0.0552 0.0�60�8 O�.O�586 0,.0582 0.0541. 0.05169 0.05162 0.051.56 0.05283 District Bonds Southwestern Community 0M344 O��0364 0.0331 0.0375, 0.0368 0.0358 0.03961 0.03856 0.04981 0.04671 College Bonds MWD D/S Remainder of 0.0043 0.003�7 0.003�7 0.0035 0.003�5 0.0035 0.0035 0.0035 0.0035 0.00350 SDCWA.15019999 County of San Diego" 1.0000 1.0000 1.0000 1.0000 1.0000 L0000 1.0000 1.0000 1.0000 1.00000 ............................................................ ............................................................ ............................................................ ............................................................ ............................................................ Total Overlapping Rates 1.1196 1.1213 1.1235 1.1249 1.1448 L1409 1.1378 1.1 3�6�9 1.1408 1.14221 Breakdown of the County of San Diego 1.00 Rate:** County General O�.1 5920�355 Gen Elem Chula Vista 029103670 High Sweetwater Union O�.18823068 Southwestern Community College 0�05072194 County School Service O�.O�0757296 County Scho,o,l Service-Capital Outlay O��O�01 90�859 Childrens Institutions Tuition O�.O�O 161434 Regional Occupational Centers O��O�0483027 Chula Vista PrQJect(19/84601) O�.O�OO�19695 Chula Vista Project(19/84601,21) O��O�OO�39390 Educational Revenue Augmentation Fund O�.14676995 Chula Vista City O��1437507 1, South Bay Irrigation 0.00000000 CWA South Bay Irrigation O��O�0376946 San Diego Unified Port 0.00000000 Total 1.00000000 'NOTE: In 1978,California voters passed Proposition 13 which sets the property tax rate at a 1.001/0 fixed amMint. This 1.00%,is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00%fixed amount, property owners are charged taxes as a percentage of assessed,property values for the payment of school bonds and other debt service. Overlapping rates may vary by tax rate area. The data listed in this tab�le is representative o f tax rate area 00 100 1. Source: County of San Diego Property Tax Services 2020-04-21 Agenda Packet, 185 Page 393 of 421 CITY O�F CHULA VISTA Principal Property Tax Payers Current Year and Nine Years Ago 2019 2010 Percent of Percent of Total City Total City Taxable Taxable Taxable Taxable Assessed Assessed Assessed Assessed Taxpayer Value Rank Value Value Rank Value ................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ .......................................................................................................................... ........................................................................................................................... .......................................................................................................................................................................... ........................................................................................................................... Rohr Inc. $ 246,1211,737 1 0.85% 171 1�9991853 5 0.78% John Hancock Life Insurance Co 149,8�02,,150 2 0.52% - 0.00% Shea Homes Ltd Partnership 146,581,,075 3 O�.5 1% 761�373 000 9 0.35% GGP Otay Ranch LP 131,789,,675 4 O�.46�% 181�51 61663 4 0.82% Otay Land CO LLC 120,381,,994 5 0.42% - 0.00% Regulo Place Apts Investors L 115,691,,68,2 6 O�.40% 11 6�1841212 7 0.53% Brisa Acquisitions LLC 1025211 11501 7 0.35% - 0.00% Vista Pacific Villas LP 975108,,58,2 8 0.34% - 0.00% NM Pulse LLC 975016,,769 9 0.34% - 0.00% BREFMCA LLC 80,905,,865 10 0.28% - 0.00% Chula Vista Center LP - - 71 11740�345 10 0.32% San Diego Expressway Limited - - 434�52000 1 1.97% JPB Development - - 401 X8�247 2 1.82% Village 11 of Otay HB SUB - - 1350000 6 0.61% Equity Residential - - 181�729�244 3 0.82% Roman Catholic Bishop of San Diego - - 791,625i737 8 0.36% $ 1128716111030 4.46% L851�217,301 8.3 8%, The amounts shown above include assessed,value data for both the City and,the Redevetopment Successor Agency. Source- MuniServices,LLC County of San Diego Property Tax Services PT Base Tab Taxable Assessed Value for FYE 2020-04-21 Agenda Packet, 186 Page 394 of 421 CITY OF CHULA VISTA 0 Property Tax Levies and Collections Last Ten FI"scal Years Collected within the Fiscal Taxes Levied Fiscal Year of Levy Collections in. Total Collections to Date Year Ended for the Percent Subsequent Percent June 30 Fiscal Year Amount ofLevy Years 2 Amount — —of Levy 2010 2612461478 2 513 13 17 0 6 96.45% 5 3 8.�429 25.1852.1135 98.50% 2011 25i325J26 24i77302 97.82%, 134�.1325 24.1907.1328 98.35% 2012 25i3�73�i780 2409i632 97.22% (35,474) 24.1634.1158, 97.09% 2013 25i352i'454 24i982M72 98.54�%, 117.1973 25.1100.1045 99.00% 2014 26M63i753 25i758i225 98.83%, 39.1776 25.1798.1000 98.98% 2015 27i72606 27i398i740 98.82%, 36.1404 27.1435.1143 98.95% 2016 2903i269 2800i 156 99.0,3%, 68.1973 28.1869.1128 99.26% 2017 3016321668 3013881650 99.20,% 49.1984 3014381634 99.37% 2018 3215181946 3212061343 99.0,4�% 58.1329 3212641672 99.22% 2019 3411981598 3318771270 99.0,6% 6.1562 3318831832 99.08% Levy amounts do not include supplemental taxes. 2 Collection amounts represent delinquencies collected for all prior years during the current tax year. Total delinquent collections are reduced by any refunds processed from prior year tax collections. Source: County of San Diego Property Tax Services ACAP234�A I% 2020-04-21 Agenda Packet, 187 Page 395 of 421 CITY OF CHULA VISTA Ratios of Outstanding Debt by Type Last Ten Fiscal Years Governmental Activities Fiscal Year Pens,ion Tax Total Percentage Debt Ended Obligation. Allocation Certificates of Governmental of Personal Per June 30, Bonds Bonds Loans Participation Activities Income I ap�ita I 2009 7.100000 45i830.1000 18.1736�101.2 13015801,000 202.11461012 2.12% 844 201.0 4.198000 44i925.1000 17.16861 1.44 13917001,000 207.1291.11.44 1.93% 850 201.1. 2.165500 43i985.1000 16.1876�1860 13610601,000 199.1576186�O 1.85% 81.4 201.2 - -2 .191,6731344 132,1290.00 151,9631344 l.44% 60�7 201.3 - -2 .14111.821697 128,1375.00 142.15571697 1.33% 558 201.4 - -2 .1 81,366�1623 121,650.00 140.10,1.61623 1.23% 539 2 201.5 - - .171,849131.6 11.71590.00 13�5.14391316 1.12% 51.7 2016 - -2 10731487 1111 19�5 MOO 12918681487 1.10% 493 2 2017 - - 2 14451777 1061025,000 127,470,777 1.10% 480 2018 - -2 123,0531035 7812601000 201�313�035 1.39% 751 2019 - -2 114,0551336 7417701000 IW825�336 1.30% 70�4 These ratios are calculated us,ing personal income and population for the prior calendar year. 2 Tax Allocation Bonds transferred to Successor Agency and sho�wn as fiduciary fund. Notes: Details regarding the City's,outstanding debt can be found,in the notes to the financial statements. 2020-04-21 Agenda Packet, 188 Page 396 of 421 CITY OF CHULA VISTA Ratio of General Bonded Debt Outstanding Last Ten Fiscal Years (In Thousands, except Per Capita) Outstanding General Bonded Debt Fiscal Year Pension Tax Percent of Ended Obligation Allocation Assessed Per June 30 Bonds Bonds Total Value I Capita 2009 7,1000 45�830 52i830 0.21% 221. 2010 41980 44�925 49,905 0.23% 205 2011 21655 43,985 461640 0.22% .1.90 2012 - - - 0.00% - 2013 - - - 0.00% - 2014 - - - 0.00% - 2015 - - - 0.00% - 2016 - - - 0.00% - 2017 - - - 0.00% - 20�18 - - - 0.00% - 20 19 - - - 0.00% - General bonded debt is debt payable with governmental fund resources and general obligation bonds recorded in enterprise funds(of which,the City has none). Assessed value has been,used because the actual value of taxable property is not readily available in the State of California. In Fiscal Year 2012.,the Tax Allocation Bpnds transferred to Successor Agency and reported as a fiduciary fund. 2020-04-21 Agenda Packet, 189 Page 397 of 421 2020-04-21 Agenda Packet, 190 Page 398 of 421 CITY OF CHUI,A VISTA Direct and Overlapping Debt June 30,2019 2018-19 Assessed Valuation: $28�,863,884,798 'Total Debt City's Share of OVERLAPPING TAX AND ASSESSMENT DEBT: 6/30/19 %Ap licab Debt 6/30�/1 9 pLic le I ............................................................ ................. ........................................................................................................ Metropolitan Water District $ 48,050,000 0.988% $ 474,734 Otay Municipal Water District,1,D.No.27 2,755,000 99.996 $ 2,754,890 S01.1thWeStCrt)Community College District 437,873,676 5 L'I 0 1, $ 223,757,827 Sweetwater Union I ligh School District 404�956,121 6�O�.945 $ 246,,800,508 Chula Vista City School District 40,065,000 87.444 $ 35,034,439 Chula Vista City School District Schools Facilities Improvement D�ist 1 80,275,000 78.889 $ 6�3,,328,145 National School District 25,410,000 3.514 $ 892,90�7 City of Chula Vista C ornmunity Facilities Districts 133,055,000 1 00�. $ 133,055,000 Sweetwater Union Higli School District ComniLinity Facilities District No. 1 21,099,746 100. $ 21,099,746 Sweetwater Union High School District Community Facilities District No,2 124,88() 1 00�. $ 124,880 Sweetwater Union Higli School District ComniLinity Facilities District No.3 6,720,105 100. $ 6,720,105 Sweetwater Union High School District Community Facilities District No,4 3�,566,885 100. $ 3,,566,885 Sweetwater Union High School District Cominunity Facilities District No.5 '1 i779�540 80�.884 $ 1,4395363 Sweetwater Union High School District Community Facilities District No.6 7,820,610 100. $ 7,820,610 Sweetwater Union High School District Cominunity Facilities District No. 10 459951�200 15.812 $ 789MI Sweetwater Union High School District Community Facilities District No. 11 5,2 0 519 3 5 100. $ 5,205,935 Sweetwater Union High School District Cominunity Facilities District No. 12 21349,3�05 100. $ 2,349530,5 Sweetwater Union High School District Community Facilities District No. 13 3,0�O�4,925 100. $ 3,004,925 Sweetwater Union High School District Cominunity Facilities District No. 14 5i572,770 100. $ 5,572i770 Sweetwater Union High School District Community Facilities District No. 15 3,262,490 100. $ 3,262,490 Sweetwater Union High School District Cominunity Facilities District No. 16 3i481,030 100. $ 3,481 iO�30 Sweetwater Union High School District Community Facilities District No. 17 5,369,840 100. $ 5,369,840 Sweetwater Union High School District Cominunity Facilities District No. 18 124,880 100. $ '124001 City of Chula Vista 1915 Act Bonds 3�,71 0,000 1 00�. $ 3,710,000 California Statewide Communities Development Authority 1915 Act Bonds 4671�703 1 00�. $ 467,70,3 TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 7801208,757 DfRECT AND OVERLAPPING GENERAL FUND DEBT: San Diego County General Fund Obligations $, 25553651000 5.487% $ 14�O L]5878 San Diego County Pension Obligation Bonds 50857651000 5.487 27,915i936 San Diego County Superintendent of Schools Obligations '1050851000 5.487 553i364 Southwestern Community College District Certificates of Participation 695,000 51.101 355,152 Sweetwater Union High School District General Fund Obligations 3�9,905,000 60,945 24,320,102 Chula Vista City School District Certificates of Participation 136,4201000 87.444 119,291,105 City of Chula Vista General Fund Obligations 189,646,709 100 189,646,709 (2) TOTAL DIREC"FAND OVERLAPPING GENERAL FUND DEBT $ 376,094,245 OVERLAPPING TAX INCREMENT DEBT(Successor Agency)- $ 26,2651000 99�.388% $ 26�,104,258 TOTAL DIRECTDEB"I' $ 189,646,709 TOTAL OVERLAPPIN(3 DEBT $ 992,760,551 COMBINEDTOTAL DEBT $ 1 1 821�407,260 (3) (1) The p�erccntagc of the overlapping debt applicable to the city is estlinated using taxable assessed property value. Applicable percentages were estirnated by detennining the portion ofthe overlapping district's assessed vallie that is within the boundaries of the city divided by the district"s total taxable assessed value. (2) Includes Certificates of Participation,Lease Revenue Bonds,Loans,Notes and Capital Leases. (3) Excludes tax and revenue anticipation notes,enterprise revenue,mortgage revenue and non-bonded capital lease obligations.Qualified Zone Acadeniy Bonds are included based on principal due a(maturity. Ratios to 2018-19 Assessed Valuation: Total Overlapping Tax and Assessment Debt................. 2.70% 'rotal Direct Debt($189,646,709)........................................... 0-66(%o Combined Total Debt.... ........................ 4.10 Ratios to Redevelopment Successor Agency Incremental Valuation(,$1,680,449,154): Total Overlapping Tax Increment Debt.................. ...... 1.55% 2020-04-21 Agenda Packet, 191 Page 399 of 421 CITY OF CI4ULA VISTA .Legal.Debt Margin Information Last Ten Fiscal Years, Fiscal.Year 201.0 201.1 2012 201.3 2014 Assessed valuation 22,10961990111003 21�235�445�229 211,153119�63143�5 20�942179�6�908 21.1,6461,268i,909 Conversion.percentage 25% 25% 25% 251% 25% Aqjusted assessed valuation 5152412471501 5130,8.1861.1307 51288!4901859 51.)235.16991227 51411 1567�227 Debt limit percentage 15% 15% 15% 15% 15%, Debt limit 8281,63,71125 796�329'�196 793i273,629 785�35404 811�73504 Total net debt applicable to limit: Pension obligation,bonds 41,9801000 21k55 000 - - - Legal debt margin 82316�571125 793�6741196 79312731,629 785135404 81117351084 .......................................................... Total,debt applicable to the limit as a percentage of debt I imit 0.6% 0.3% 0.0% 0.0% 0.0% The Government Code ofthe State of'Cali�fornia,provides'fo�r a legal debt lirnit of 15%of gross assessed valuation.However,this provision was enacted when assessed valuation was based upon 25%of market value. Effective with the 1981-82 fiscal year, each parcel is no�w assessed at 100%of market value(as of the most recent change in ownership for that parcel). The computations shown above reflect a conversion of assessed valuation data for each fiscal year from the current full valuation perspective to the 25%level that was in effect at the time that the legal debt margin was enacted by the State of Calfforniafor local governments located within the state. Source: City Finance Department County of San Diego Property Tax Services 2020-04-21 Agenda Packet, 192 Page 400 of 421 Fiscal Year 201.5 201.6 201.7 2018 2019 $ 23�09M40�353 $ 241,1455i99816,41. $ 25�776M74�509 $ 271351,1591,591. $ 28,86304�798 25% 25% 25% 25% 25% 51772.16 1008 6.1 It 319991660 6i,444.10'18.1627 6!�837189711898 71,215.19711200 15% '15% 15% 15% 15% 86�5�89 1.�5,13 917M99�949 966,1602,�794 1 M251684�685 1 02,�3951680 86�5�8911513 $ 91710991949 $ 966021794 $ 1110251684�685 $ 1 M,82�39500 ............................................................ 0.0% 0.0% 0.0% 0.0% 0.0% 2020-04-21 Agenda Packet, 193 Page 401 of 421 CITY OF CHULA VISTA Pled ged-Reven ue Coverage .Last Ten-Fiscal Years, Tax Allocation Bonds Fiscal'Year Ended Tax Debt Service Jun.e 30 Increment Principal Interest Coverage 2009 13i,781.,1683 870�1000 1.1728�722 5.30 2010 1304i637 90�5,1000 2M70138l 4.6�7 2011. 1318 2 219 3 8 94�O�.1000 2.10321665 4.65 2012 1 0�931 M5 98000 11992�565 3.68 2013 31�949 71.7 1 020000 1. 94886,5 1.33 2014 611441015 1 M651000 1 i9ol i703 2.07 2015 5fi48.1052 116,90.1000 1 i840'1378 1.60 2016 510�42�979 1�76500 I�765i765 1.43 2017 3�589.1342 - 849,1680 4�.22 2018 410�92�288 L38500 IJ71i750 1.60 2019 2�774.1802 L6651000 11132.1925 0.99 Note.- Details regarding the city's outstanding debt can be found in the notes to the financial statements. 2020-04-21 Agenda Packet, 194 Page 402 of 421 CITY OF CHULA VISTA Demographic and Economic Statis(ics Last'Fen Calendar Years F.Aucational Attainment Pct,of S.D. Pa Change Avg. Bachelor's Per Capita Total County fi-oni Previous Median Household IX0 High School I)egree oi- Pct.Below Uneniployrnent Personal Incon'ie Personal Year P0131,11ation. Population year Age Size I (3raduate 2 11 igher 2 Poverty 2 Rate 3 (111 Thousands).I Incorne'4 ------------ -------- ------- 2008 235�767 7.811/c') 33.8 3.16, 8 1.0% 25.711,/o 8.5111/o 7.1 IX) 10,277,383 43,591 2009 239�369 7.8% 1�5'Xo 33,9 3.20 80,0% 25.5"Xo 11,5%',� 11.01%0 9,543,963 39,871 2010 243�916 7.911/c') 1.901,111) 33.8 3.21 83.0% 29.19/o 8.411,/o 13.31�% 10,743,63�6 44,046 2011 245�309 7,9% OflXo 33,6 3.22 82,2% 25.7/4 11,6% 12.8'X, 10,807,171 44,055 2012 250349 7.911/c') 2.1 33,.6 3.23, 81.3% 27.911,/o �1.9'/'/() 1 1.41�% 10,564,�30 42,198 2013 25507 8.0% 1 I'X) 33,5 3.25 79,0% 25.6"X, 15,6%',� 9.V,"o 10,752,622 42,067 2014 259�8 11 8.011/c') 1.61�,,'� 33,.6 3.27 80.4% 27.811,/o 2.81/1/0 8.1 IX) 11,376,071 43,786 2015 261�801 8.011/c') O.M,11� 33,.6 3.27 8 2.3 IN) 29.811,/o 0.61/1/0 6,51X) 12,083,065 46,154 2016 263�61 1 8.0% 07X) 33,7 3.27 80,1% 27.411X, 10,5%',� 5.9'�','o 11,828,107 44,870 2017 265�357 8.0% 07X) 33,8 3.29 80,9% 2 8.1"X, 11,5%',� 5.W'I'o 11,578,528 43,621 2018 268�060 8.0% 1 OX) 33,5 3.34 85,5% 27.411X, 8.411X, 3.6'�','o 14,470,667 54,116 Sourcc�Data cornpiled by SANDAG Service BUrCUL SANDAG,Current.Estfiflmcs�2 American COMMUnity SUINCY I-Year EsOnia(CS;3('alif6rnia Employment Developnient.Departnient 4 SANDAG otirna(es based on U.S.Census Bureau,Census 200�O�,Cerisus 20 10,American CommiLin ity Survey,and U.S,.Bureau of Econornic Analysis. Notes:Ycar.-to year variation for socio economic data(education,poverty,unemployment)are the result of both actual change and sampling errc Inconic was CStirriated by using 13EA PerSOT1,11 Income R,,)r the Region and was adJusted.based on the Census 2000 and AC,SjUrisdiction proportions. 2020-04-21 Agenda Packet 195 Page 403 of 421 CITY OF CHULA VISTA Principal Employers Current Year and Nine Years Ago 2 01.9 201.0 Percent of Percent of Number of Total. Number of Total Employer Employees Employment Employees Employment Sweetwater Union High School.District 411.33 1. 6.36% 4.136�4 1. 1.0.19% Chula Vista Elementary School District 31680 2 5.66% 2.161.6, 2 6.11% Sharp Chula Vista Medical Center 2.�287 3 3.52% 1.1810 4 4.23% Rohr Inc./Goo�drich Aerospace 1.�928 4 2.97% 1.1903 3 4.44% Southwestern Community College 1.�743 5 2.68% 1.1682 6 2.84% Wal-Mart I.X3 6 2.0,3% 950 8 2.22% City of Chula Vista 1.�208 7 1.86% 1.1215 5 3.930/(0. Scripps Mercy Hospital,Chula Vista IM73 8 .1.65% 993 7 2.32% Aquatica, 698 9 1.07% 0.00% Costco 674 1.0 1.04% 0.00% Target 6�04 10 1.41% Vons 6�21 9 1.45% "Total Employment"as used above represents,the total employment of all employers,located within City limits. Source: State Employment Development Department City Finance Department Sweetwater Union High School District Chula Vista Elementary School District Southwestern Community College EDD 2020-04-21 Agenda Packet, 196 Page 404 of 421 CITY OF CHULA VISTA 0 Full-time and Part-time City Employees by Function Last TenFiscal,Years Function. 201.0 201.1 2012 2013 20 14 20 15 20 16 20 1,7 201.8 20 1,9 General Government 273 258 269 282 312 288 20�5 210 198 160 .Public Safety 468 44�8 432 432 425 469 470 474 492 527 Public Works/Engr 175 155 159 164 161 161 241 228 228 184 Parks and Recreation,. .1.64 1.12 1.15 1.15 130 161 176 1.53 1.58 229 Library 73 41 76 82 77 88 70 77 73 74 .Development Services 62 54 55 49 4�9 49 57 55 58 73 Total 11215 11068 11106 11124 11154 11216 11219 1 J97 11207 1�247 Source.- City Finance Department 2020-04-21 Agenda Packet, 197 Page 405 of 421 CITY OF CHULA VISTA Operating Indicators by Function/Program Last Ten Fiscal Years Fiscal Year 20 10 2011 2012 2013 2014 2015 2016 2017 2018 2019 Police: Citizen-initiated calls for service 6810 1, 6,5�186 6405 6,6,�319 6�5,645 6�4,486 67,512 651672 65,643 641066 Fire: Number of emergency calls 11 11�319 12�863 12�950 14,787 18,328 19�,612 191612 21,397 211803, Inspections 2�1898 2,,389 2�1205 2,,390 2>2 4�209 4�207 4,207 3,907 3,862 Public works: Street resurfacing/maintenance 84�1276 99�1978 55,,398 121 38,087 61,640 39,338 61,640 16,178 14,734 (square feet) Parks and recreation: Nurnber of recreation classes 2,3 0 1 2,008 11914 2,572 2�456 2,388 3,859 31124 2,658 3,552 Number of facility rental,s 111175 1 i524 2iP28 I i915 15781 1,921 1,573 11482 688 771 Library: Circulation 985�157 952,847 982,688 992,005 954,071 839,616 706,594 706,59�4 637,119 539,762 Attendance 60511979 614i�841 722i�31 0 832i975 8225895 8035535 8575475 8571475 9�585117 1,6351849 Sewer: New connections 469 287 646 968 553 210 2211 211 502 1456 Average daily sewage treatment 16.2 16.3 15.9 15.7 15.5 15.5 15.4 20.9 20.9 20.9 (millions o�f gallons) Excludes filling,of potholes and cracl<sealing, Note: Data is not available for the fiscal years marked as n/a. Source:City of Chula Vista 2020-04-21 Agenda Packet, 198 Page 406 of 421 CITY OF CHULA VISTA Capital Asset Statistics by Function/Prograrn I..,ast Ten Fiscal'Years Fi.scal'Year 2010 2011 2012 2013 20,14 20,15 20 16 20 17 20�18 2019 Police: Stations I I I I I I I I I Fi re: Fire stations 9 9 9 9 9 9 9 9 9 9 PUblic works: Streets(miles) 429.5 429�.5 429.5 429.5 433.9 433.9 433.9 433.9 434.2 434.2 Streetlights 9,052 9,054 9,,066 9,,069 9,069 90,69 9144 9282 9539 9787 'Fraffic signals, 267 268 269 273 273 273 275 275 282 288 Parks and recreation: Parks(acreage)1 504.1 523.1 530.7 530.7 527.7 557.2 557.2 708 6�60 6�60 Recreation Eacilities H H H H H H ]l ]l ]l I I 1-ibrary: Libraries 2 2 3 3 3 3 3 3 3 3 Sewer: 2 Sewer pipes(miles) 505,0 505�O 505.0 505.0 5 11.3 514.315 514.6 514.6 514.6 514.6 3 Storm drains(miles) 248,9 24K9 249.0 249.0 255.2 263.209, 266.2 269.6 272.4 273.8 Maximum daily treatment capacity 20.9 20.9 20.9 20.9 20.9 20.9 20�.9 20�.9 20�.9 20.9 (millions ol�"gallons) Includes community,neighborhood,special purpose,mini,urban,and privately maintained public parks within City Boundaries. 2 Updated 20 18 Sewer pipces(rni les)per GA,S B 34 FY 2018 3 Updated 2018 Storrn Drain(miles)per GASB 3�4 FY 2018 Source:City of Chula Vista 2020-04-21 Agenda Packet, 199 Page 407 of 421 2020-04-21 Agenda Packet, 200 Page 408 of 421 LSL0000 00 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Chula Vista, California We have audited, in accord�ance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities7 the business-�type activities7 each major fund, and the aggregate remaining fund information of the City of Chula Vista, California, (the City) as of and for the year ended June 30, 2019,, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated March 25, 20,20. Internal Control over Financiall Reporting In planning and performing our audit of the financial statements,; we considered the City's, internal controll over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City 11 s, internal control., Accordingly, we do not express an opi�n�ion on the effectiveness of the City's internal control�. Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not des,ig�ned to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, mate�rial weaknesses or significant deficiencies may ex I ist that were not identified. However, we identified certain deficiencies in internal control that we cons,ider to be material weaknesses and significant deficiencies. A deficiency in intemal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent,o�r detect and correct, m�isstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies,, in internal controll such that there is a reasonable possibility that a material m�is,statement of the en�tity's financial statements will not be prevented, or detected and corrected on a timely basis., A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness,yet important enough to merit attention by those charged with governance.,We consider the deficiencies reported as on the accompanying schedule of findings and questioned costs to be material weaknesses: 1) 20191-0011: Trial �Balance, Account Reconciliations,, Post-Closing Journal Entries 2) 2019-0102,- Cash and Investments Reconciliation 3) 201�91-0013- Schedule of Explen�d�itu�res of Federal Awards P. T.i m e G I o..b.a 11 0000 Ls, L 0 To the Honorable �Mayor and Members of the City Council City of Chu�la Vista, California, Compliance and Other Matters As, part of obtaining reasonable assurance about whether the City;s, financial statements are free from material misstatement, we performed tests of its com�pl�iance with certain provisions, of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our aud�it, and accordinglyl we do not express such an opinion. The, results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. City's Response to Findings The City's response to the findings identified in our audit was not subjected to the auditing procedures applied in the aud�it of the financial statements an�d�, accordingly, we express no opinion on it. Purpose of this Report The purpose of this, report is solely to describe the scope of our testing of internal control and compliance and the results of that testing�, and not to provide an opinion on the effectiveness of the City Y s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and comp�liance. Accordingly, this, communication is not suitable for any other purpose., a*& 001, Brea, California March 25, 2012�O 2020-04-21 Agenda Packet, 202 Page 410 of 421 0000 Ls, L 0 To the Honorable Mayor and Me�m�be�rs of the City Council City of Chula,Vista, California S,CHED,U�LE OF FINDINGS AND QUESTIONED COSTS, Trial Balance, Account Reconciliatlonsi Post-Closin�g Journal Entries Reference N�u�m�ber: 2,01�9-0011 Condition: Upon standard inqu I iries and requests, arising from analytical and substantive review and testwork, the auditors noted several balance sheet and income statement, accounts were not reconciled properly. The significant volume and material impact of the required post-closing journal entries resulted in the need of a subsequent revised trial balance. Criteria: The trial balance provided for the financial statement audit should be complete in all material respects. Cause ofCondition: The cause of the condition is due to weaknesses in internal con�tro�l�s and procedures related to, year-en�d close and financial reporting�. Effect or Potential Effect of'Con�ditio�n: The effect of the condition was the requirement for several material post-clos,ing journal entries to various balance sheet and income statement accounts. Recommendation: The auditors recommend the City revisit its procedures related to year-end close and financial reporting to ensure all roles and responsibilities of each individual in Finance and other departments is clearly defined and monitored by management. Management's Response and Corrective Action: Management ag�rees to,the importance of providing a trial balance that is complete in al�l material respects for the financial statement audit as well as financial reporting for the fiscal year. This,occurrence resulted from staff's co�n�ti�n�ued efforts, to identify and resolve issues related to the implementation of the new ERP system. In addition, the Finance department experienced significant staffing changes which impacted assigned roles and re,sp�onsibilit,ies for the fiscal year. Management, is, committed to reviewing existing internal controls and procedures in relation to the year-end c,lose process and financial reporting to clearly define roles and responsibilities for all City departments. Cash and Investments Reconciliation Reference Nu�m�ber: 201�9-0012 Condition: The review and testing of a City's bank reconcil�iation is a standard aud�iting procedure. Upon receipt of the City's,original main bank reconciliation as of 6/30/19,the aud�itors noted several individually and collectively material unreconciled items. The items were primarily unposted or unre,conciled deposits or payments and amounted to approximately$24 million. Criteria: The year-end bank reconciliation provided for the �financial statement, audit, should be complete in all material respects. There should be no unreconciled or unposted items. 2020-04-21 Agenda Packet, 203 Page 411 of 421 0000 Ls, L 0 To the Honorable Mayor and Members of the City Council City of Chula,Vista, California Cause of Condition: The cause of the condition is due to weaknesses in internal con�tro�l�s and procedures related to, year-end close and bank reconciliations. Effect or Potentiall Effect of'Con�ditio�n: The effect of the condition was the requirement for several material post-closing journ�al entries to various balance sheet and income statement accolu�n�ts. Recommendation: The aud�itors recommend the City revisit its procedures re,lated to year-end close and bank reconciliations, to ensure all roles and responsibilities of the individuals involved are clearly defined and monitored by management., Management's Response and Corrective Actio�n�: Management agrees to the importance of p�rovid�ing year-end bank reconciliations that are complete in al�l material respects and thereby should have no unreconciled or unposted items. The $24 million in unreconciled or unposte,d items was an isolated event related to an issue with the posting strategy set up during the implementation of'the new ERP system. Management took corrective action and the posting strategy is now working properly., Management is committed to review existing internal co�n�tro�l�s and procedures in relation to the year-end close process and bank reconciliations and take action as needed to strengthen internal controls Schedule of Expenditures of Federal Awards Reference Num�ber: 201�9-0013 Condition: Upo�n receipt of the City's schedule of expenditures of federal awards as of 6/30/19, the auditors noted several d�iscrepan�cies between the schedule and the general ledger. It was determined that the, schedule originally provided had a net understatement of approximately$2.,5 million in federal expend�itures. Criteria: The schedule of federal expenditures of federal awards provided for the financial statement audit should be complete in all material respects., Com�mun�ication amongst other departments and Finance is critical to ensure all federal grants are properly identified, monitored, and reconciled., Cause of Condition: The cause of the condition is, due to weaknesses in internal controls and procedures related to monitoring and reporting of federal expenditures and awards., Effect or Potentiall Effect of'Con�dition: The effect of the condition was the requirement for the development of several revised versions of the schedule of federal expenditures and awards. Recommendation: The auditors recommend the City revisit its procedures related to monitoring and reporting of federal expenditures and awards to ensure all roles and responsibilities of the individuals involved are clearly defined and monitored by manag�ement. Management's Response and Corrective Action: Management agrees to, the importance of �providing a schedule of expenditures of federal awards that is complete in all material respects,. This occurrence resulted from significant staffing changes wh�ich impacted assigned roles and responsibilities for the fiscal year within the Finance department. Management is, comm�itted to review existing procedures related to moni�to�ri�n�g and reporting of federal expenditures as well as implement a reconcil�iation to the Gen�eral Ledg�er to mitigate di�screpan�ci�es. 2020-04-21 Agenda Packet, 204 Page 412 of 421 ITEM #7 ATTACHMENTS FOR THIS ITEM WILL BE UPLOADED WHEN AVAILABLE 2020-04-21 Agenda Packet Page 413 of 421 IN III til C1TY' C,0UNC'1L A,GEN' DA STIA, ""EMENT CITY, OF ..................................... CHUIAVISTA Aprfl 21, 2020 File,ID: 20-0143 'TITLE RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE INFRASTRUCTURE, FACILITIES, AND EQUIPMENT EXPENDITURE PLAN AND TRANSFERRING $331,000 IN MEASURE P APPROPRIATIONS FROM STL043�O TO, DRN0211, STORM DRAIN (CMP) REHABILITATION OUTSIDE THE, RIGHT OF WAY (PHASE 11) PROJECT, FOR EMERGENCY CONTRACT CHANGE ORDERS (4/5 VOTE REQUIRED) RECOMMENDED ACTION Council adopt the resolution. SUMMARY On July 17, 2018, City Council awarded a construction contract to Spliniello Companies for the CMP Rehabilitation Outside the Right of Way Phase 11 Project FY2017/2018 CIP No. DRN0211, funded by Measure P. Due to an unexpected pipe failure and sinkhole requiring extensive emergency re�pairs, cost increases to the pro,ject exceed the approved contingencies. On November 8, 2016, Chula Vista voters approved Measure P, authorizing a one-half cent sales tax increase on retail sales within the City for a period of ten (10) years to repair failed or failing assets throughout the city. Staff recommends (1) amending the Infrastructure, Facilities, and Equipment Expenditure Plan, and (2) transferring $331,000 in Measure P from STL0430 to DRN0211 to, complete emergency construction change orders with Sp�iniello Companies. ENVIRONMENTAL REVIEW The Director, of Development Services has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for Class 1 Categorical Exemptions pursuant to Section 15301, Class 1 (b) (Existing Facilities) of the CEQA State Guidelines. Consistent with Section 15 3 0 1(b),the proposed action would not result in a significant effect on the environment, create a cumulative impact, damage a scenic highway, be located on a site pursuant to Section 65962.5, or cause a substantial adverse change in the significance of a historical resource. The project involves no expansion of an existing use.Thus, no further environmental review is necessary. PIi3ge 1 2020-04-21 Agenda Packet, Page 414 of 421 BOARD/COMMISSION/COMMITTEE RECOMMENDATION Per Ordinance 3371, the function of the Measure P Citizen Oversight Commission shall be to review and report on City comp�liance with the terms of this Ordinance and the spending guidelines contained in the City Council Intended Infrastructure, Facilities and Equipment Expenditure Plan and each Measure P Spending Plan presented and approved by the City Council,thereafter. Due to the COVID-19 emergency,the City Manager has cancelled all Boards and Commission meetings until further notice unless he determined that an emergency meeting was necessary. After reviewing the nature of the item, it was determined that CMP projects are eligible expenditures identified in the Plan and the item can be brought back for COC consideration as soon as the next meeting could be scheduled. Staff will e-mail the COC members the staff report that will be considered by the City Council at the April 2 1st Council meeting in order to pr�ovide them the opportunity to provide comments as individuals. DISCUSSION On December 31, 2019, a sinkhole was discovered at a recycled aggregate processing and storage facility operated by Pavement Recycling Systems Inc. at 855 Energy Way., Research revealed that the sinkhole was within a City of Chula Vista drainage easement (not in the public street Right of'Way) and centered on an access riser on a 66-inch diameter Corrugated Metal Pipe (CMP) owned by the City of Chula Vista. The City engaged Sp�inello Companies on an emergency basis to begin the repair work. The condition of the pipe and riser were unknown. Excavation was done to determine the scope of the repair work and repairs to the slope supporting Energy Way were made. It is believed that the existing 66-inch pipe is re�lative,ly structurally sound and the sinkhole can be repaired by rep�lacing the riser with a new cleanout without replacing the pipe. However,,, the true pipe condition has not been fully evaluated and the scope of the needed repairs is not yet fully known, so additional contingency is warranted. The estimated cost of the repair work is $450,000 which includes contingency,. Remaining funds in DRN0221 is $119,000 resulting in a shortfall of$331,000. STL0430 - Street Pavement Rehab Phase 11 CIP STL0430 was awarded to Spinello Companies by Council on April 161, 2019. ST'L,0430 is the second phase of the pavement rehabilitation project and included the remaining street segments with a Pavement Condition Index (PCI) of less than 25. This project is approximately 85% comp�lete. Based upon the contingency fund needs to date, it appears there would be sufficient funding available to complete the project after transferring $331,000 from ST'L04,30 (pavement rehabilitation category) to DRNO�211 (storm drain category). Staff will continue to monitor this project closely to ensure that any unforeseen conditions that may arise are managed within the limits of the remaining contingency amount. Infrastructure, Facilities and Equipment Expenditure Plan The City Council adopted the Infrastructure, Facilities and Equipment Expenditure Plan (Plan) on December 6, 2016�, relating to the expenditure of the Measure P Sales Tax. Both projects were approved and funded as part of the Measure P Pavement Rehabilitation category (,STL0430) and, the Other P �3ge 12 2020-04-21 Agenda Packet, Page 415 of 421 Infrastructure (storm drain) category (DRN0211). The scope and location of the sinkhole repair is compliant with the Measure P commitment of fixing failed Corrugated Metal pipe,outside of'the pIub�lic right of way. Staff has determined amending the Plan to include the sinkhole repair is compliant with the Measure P guidelines and is urgent due to the nature of the failure. In response, to the COVID-19 pandemic, the Citizen Oversight Committee, (COC) meetings have been cancelled. Due to the nature of the emerIgency, staff recommends amending the Infrastructure, Facilities and Equipment Expenditure Plan due to the risks of additional damage and increased costs if delayed. The funding of CMP is an authorized expense category in the plan. The amendment would only be,to reallocate funds between two categories as discussed below. Staff'is planning on presenting this item for review to the Measure P COC as soon as possible. The amended Plan and various expenditure categories are, summarized below: Street Pavement Rehab Phiases 1/11(STLO427/STLO430) Enig&Capital Proj $ 15,882,566 $ (331,000), $ 15,551,566 CMP Rehab Outside ROW Phases1/11 (DRN01209/DRN0211) Eng&Capital Proj J $ 616101000 331,000 $ 61941,000 Change Orders On May 9, 20,17, City Council approved Resolution 17-0174 to adopt ordinance (Ord. 3400 § 1, 2017) of'the City of Chula Vista and amend Chapter 2.,56 of the Chula Vista Municipal Code - "Purchasing System". This ordinance amended the change order limits and authorizes the City Engineer to approve change orders up to the remaining CIP budget available for the CIP project. As such, amending the Expenditure Plan and transferring funds to DRN0211 would allow the City Engineer to enter into necessary contract change orders. DECISION-MAKER,CONFLICT This item solely concerns repairs, replacement or maintenance of existing streets, water, sewer, storm drainage or similar facilities, and the Council Members' property will not be affected disproportionately to other properties receiving the same services. Consequently, pursuant to California Code o�f' Regulations Title 2, sections 18700 and 187022(d)(1)), 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. CURRENT-YEAR FISCAL IMPACT' Approval of the resolution will (1) amend the Infrastructure, Facilities, and Equipment Expenditure Plan, and (2) transfer $331,000 in Measure P from STL04,30 to DRN0211 accelerating the repair and replacement of critical assets. PIi3ge 3 2020-04-21 Agenda Packet, Page 416 of 421 ONGOING FISCAL IMPACT Upon completion of the project,the,improvements will require routine maintenance. ATTAC14MENTS None. Staff Contact.-Jonathan Salsman,Senior Civil Engineer P �3ge 4 2020-04-21 Agenda Packet, Page 417 of 421 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE INFRASTRUCTURE, FACILITIES, AND EQUIPMENT EXPENDITURE PLAN AND TRANSFERRING $3311,000 IN MEASURE P APPROPRIATIONS FROM STL0430 TO DRN021 1, STORM DRAIN (CMP) REHABILITATION OUTSIDE THE RIGHT OF WAY (PHASE 11) PROJECT, FOR EMERGENCY CONTRACT CHANGE ORDERS (4/5 VOTE REQUIRED) WHEREAS, on November 8, 20�16, the voters of the City of Chula Vista approved Measure P authorizing a one-half cent sales tax on retail sales within the City for a period of ten (10�) years; and WHEREAS, per Chula Vista Municipal Code Section 3.33.160.A, all revenue generated by the tax shall be accounted for in the General Fund as a separate line item and will then be transferred to a General Fund subfund entitled"Measure 'P' Sales Tax Fund"; and WHEREASI staff has created the 2016 Measure P Sales Tax Fund (Fund 201) for the purpose of accounting for all revenues and expenditures of Measure P monies; and WHEREAS, the Measure P Infrastructure, Facilities, and Equipment Expenditure Plan ("Expenditure Plan") has been and continues to be updated to reflect the ratification of Measure P and the expenditures pursuant thereto; and WHEREAS, per Ordinance 3371, the function of the Measure P Citizen Oversight Commission shallbe to review and report on City compliance with the terms of this Ordinance and the spending guidelines contained in the City Council Intended Infrastructure, Facilities and Equipment Expenditure Plan and each Measure P Spending Plan presented and approved by the City Council, thereafter; and WHEREAS, due to the COVID-19 emergency, the City Manager has cancelled all Boards and Commission meetings until further notice unless he determined that an emergency meeting was necessary. After reviewing the nature of the itern, it was determined that CMP projects are eligible expenditures identified in the Plan and the item can be brought back for COC consideration as soon as the next meeting could be scheduled. WHEREAS, staff will e-mail the CO�C members the staff report that will, be considered by the City Council at the April 2 1 st Council meeting in order to provide them the opportunity to provide comments as individuals. WHEREAS, the street pavement rehabilitation category (STL0430) and other improvements (storm drain) category (DRN021 1) were approved and funded by Measure P; and 2020-04-21 Agenda Packet, Page 418 of 421 WHEREAS, the proposed amendment to the Expenditure Plan would transfer funds from the street pavement rehabilitation category to the! other improvements (storm drain) category to complete the emergency storm drain repairs described herein; and WHEREAS, on July 17, 2018� the City Council adopted Resolution 2018-0137 awarding a construction contract to Spiniello Companies for the CMP Rehabilitation Outside the Right of Way Phase 11 Project FY2017/2018, CIP No. DRN0211 ("Project") and work is currently in progress for the Project; and WHEREAS, on December 31, 2019, a sinkhole was discovered at a recycled aggregate processing and storage facility located at 855 Energy Way within a City drainage easement; and WHEREAS, it is necessary to complete the sinkhole repair to prevent failure of the adjacent road, which would necessitate significantly more costly repairs in the event of such failure; and WHEREAS, the scope and location of the needed sinkhole repair are within the scope of work for the Project and compliant with the Measure P commitment to fixing failed corrugated metal pipe outside of the public right-of-way; and WHEREAS, staff has determined that an emergency contract change order for the Project is the most efficient and cost-effective means to complete the needed sinkhole repair due to the urgent nature of the failure; and WHEREASI Chula Vista Municipal Code section 2.56.160.C.2 authorizes the City Engineer to approve change orders up to the remaining CIP budget available for any CIP project; and WHEREAS, staff has determined amending the Expenditure Plan to transfer funds from STL0430 to DRN0211 to allow for a contract change order to complete the sinkhole repair is compliant with the Measure P guidelines and is urgent due to the nature of the failure. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista that it amends the Measure P Infrastructure, Facilities, and Equipment Expenditure Plan and transfers, $3 3 1 000 fro�m STL0430 to DRN021 I for emergency contract change orders. Presented by Approved as to form by William S. Valle Glen R. Googins Director of Engineering & Capital Projects City Attorney 2020-04-21 Agenda Packet, Page 419 of 421 Resolution No. Page 3 2020-04-21 Agenda Packet, Page 420 of 421 ITEM #9 ATTACHMENTS FOR THIS ITEM WILL BE UPLOADED WHEN AVAILABLE 2020-04-21 Agenda Packet Page 421 of 421