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Home My WebLink AboutAgenda Packet 1999/06/22 "I declare undllr<pl!dll(ty\of perjury that I am employed by the City of Chuta Vista in the Julie 22, 1999 Office of the City Cler!, and that I posted 6:nn p.lII. this Agenda/Notice on the Bulletin Board at the Public "rViiJ Building a~9. CALL TO ORDER DATED: ~ J;.. ":?sIGNED' . ~, ¡ ROLL CALL' Council members Davis, Moot, Padilla, Salas, and Mayor Horton. 2. PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE 3. APPROVAL OF MINUTES None submitted 4. SPECIAL ORDERS OF THE DAY A. Presentation from Duke Energy, North America, to the Mayor for domestic violence awareness. B. Presentation of awards It)r (ìral1ìti Reduction Colnring Contest winners. CONSENT CALENDAR (Items 5 through 12) the slaffrecomme/ldallO/ls regardillg Ihefi¡II()1I'111g Items I/sled IIlIda Ihe ('o/lse/ll ('ale/ldar wi/! he e/lacled hI' Ihe ('O/IIICII hI" olle molioll, 11'111111/11 disclIs,Ùm, III/Ies.' a ('oll/lcilmemha, a memha o!lhe Iil/h//(', or ('/Il' sial! /'('II"esls Ihal the item he removedf;,r di.,clIssio/l. I!yoll II'/sh !O ,')¡'ak Oil m/(' oflhe,,' ilems, 1!lease.fï11 0111 a "lIe'lllesllo ,\/Jeak" .1;)/'/11 (avai/ah/e /11 the lobby) allll sllhmil II 10 Ihe (III' ('led prior 10 the meeli/lg. Ih'm.'IJIIlledj;,()/lllhe ('(m"'1I1 ( 'alellllar 11'/11 he di.,clIssed afier Aclioll Items. Ilems IJIIlled hy II/(, IJllhhc 11'/11 be Ihefin/llems o!bll\'II/('ss. 5. WRITTEN COMMUNICATIONS A Letter li'OI11 the City Attorney stating that to the hest of his knowledge lì'om observance of actions taken in Closed Session on June X. I <)<)<), that there were no actions taken which arc required under the Brown Act to he reported Stalfrecommendation The letter he received and !ì\cd B. Letter from Walter Nnrris, President, Mother Goose Parade, requesting a donation of $2,500 for the Novemher 21, I ()<)(), "Mother (¡oose Honnrs Disabled Children" parade. Staff recommendation That the request be denied C. Letter jj'om Richard A. Pena, requesting that the Bonita Historical Museum be included in the City's hudget Staff recommendation $I,O()() has heen recommended to be included in the Community Promotions Budget it)r I <)()CJ/2()()() Agenda 2 June 22, 1999 6. ORDINANCE2791, AMENDING THE COMMERCIAL DISTRICT REGULATIONS OF THE RANCHO DEL REY SECTIONAL PLANNING AREA (SPA I) PLAN TO ALLOW FOR SELF-STORAGE FACILITIES TO BE CONSIDERED SUBJECT TO APPROVAL OF A CONDITIONAL USE PERMIT (SECOND READING AND ADOPTION) Tbe project consists of two three-story buildings with an overall size 01'95,025 square feet. It is proposed for a vacant IX acre site located at the southwest corner ofLazo Court and Paseo del Rey. It is the only vacant parcel remaining in the Rancho del Rey Commercial District, otherwise known as the Power Center The applicant is requesting an amendment to the Comlllercial District Regulations to allow this type of use, subject to a Conditional Use Permit and associated Conditional Use Permit, It)r this particular site. Staff recommendation: Council place the ordinance on second reading and adoption. (Director of Planning and Building and Director of Community Development) 7. RESOLUTION 19494, ACCEPTING DONATION, AUTHORIZING EXPENDITURE AND APPROPRIATING SAID DONATED FUNDS TO TIlE POLICE DEPARTMENT RESERVE MOUNTED UNIT The Police Department Reserve Mounted Unit recently received an unsolicited donation in the amount of $500 from the San Diego Gas 8:. Electric Company The donation was presented to the Mounted Unit to underwrite the purchase ofrcplacement tack for City-wide Police saddles Staff recommendation. Council adopt the resolution (Chief of Police) 8A RESOLUTION I <)495, APPROVING AN APPLICATION FOR GRANT FUNDS TO THE STATE OF CALIFORNIA, DEPARTMENT OF PARKS AND RECREATION, FOR THREE PARK PROJECTS B. RESOLUTION 19496, ACCEPTING A GRANT IN THE AMOUNT OF $496,440 FROM THE STATE OF CALIFORNIA FOR THREE PARK PROJECTS (TIFFANY PARK, PARKWAY POOL RESURFACING-LAMPING, AND SOUTH BAY COMMUNITY SERVICES TROLLEY TRESTLE PROJECT); AND DIRECTING THE CITY MANAGER TO INCLUDE THE TROLLEY TRESTLE PROJECT GRANT FUNDS IN THE FISCAL YEAR 1999/2000 PROPOSED BUDGET; AND AUTHORIZING THE DIRECTOR OF LIBRARY AND RECREATION, OR HIS DESI(iNEE, TO SIGN THE APPROPRIATE DOCUMENT ATION WITH TIlE STATE OF CALIFORNIA TO ACCEPT THE GRANT FUNDS The City has been awarded $49(),440 in grant tt\(is I¡'om the State ofCalitornia for three projects: two of which are City Capitallmprovemcnt Projects, Tillàny Park and Parkway Pool. The third award offunds is to he used It)' a housing site being developed by South Bay Community Services, entitled Trolley Trestle For this project, the City will act as a Ilmding dispersal agent to South Bay Community Services. The Citv muSlnow submit an application for these grant ti.lIlds to the State "fCali()rnia Department of Parks and Recreation in order to receive the Illllds Staff recommendation. Council adopt the resolutions (Library and Recreation Director) Agenda 3 June 22,1999 9. RESOLUTION 19497, APPROVING COMMUNITY DEVELOPMENT BLOCK GRANT AGREEMENTS WITH VARIOUS COMMUNITY GROUPS AND CITY DEPARTMENTS AND AUTHORIZING TIlE MAYOR TO EXECUTE SAID AGREEMENTS On May 4, 1999, Council approved Community Development Block Grant funds for 15 public service groups; 4 community project programs; 5 economic development programs; 2 community capital improvement programs; 10 City capital improvement programs; and 5 administration and planninglcoordination activities The US. Depat1ment of Housing and Urban Development requires a written agreement with each subrecipient of Community Development Block Grant and HOME funds Staff recommendation: Council adopt the resolution (Director of Community Development) 10. RESOLUTION 19498, APPROVING A SEWER SERVICE AND OFFER OF ANNEXATION AGREEMENT WITH FRANCI SCOJA VI ER MARES AND MAl TUYET DO AT 4017 PALM DRIVE AND AllTHORIZING THE rvlA YORTO EXECUTE SAME ON BEHALF OF THE CITY In accordance with Policy 570-02, Francisco Javier Mares and Mai Tuyet Do have executed the required agreement in ordcr to connect their property to the City in an unincorporated area of the County Staff recommendation: Council adopt the resolution (Directnr of Puhlic Works) II. RESOLUTION 19499, WAIVING THE CONSULT ANT SELECTION PROCESS, APPROVING AWARD OF A THREE-YEAR SERVICE CONTRACT TO AMERICAN DIGITAL SYSTEMS ENVIRONMENTAL SERVICES, INC FOR TIlE MAINTENANCE OF SEVEN SEWAGE FLOW METERS FOR FISCAL YEARS 1 <)()9/2000, 2000/2001, 2001/2002 AND AUTHORIZINCì MA YOR TO EXECUTE SAID AGREEMENT The City's current three-year service contract wit h American Digital Systems Environmental Services, Inc. Il)r the repair and preventive maintenance services of seven sewage flow metering stations will expire on June 3(). Ie),),) l3ased on evaluation of the proposal, staff recommends that the Citv enters into a new three-year contract with American Digital Systems Environmental Services, I nc Staff recommendation Council adopt the resolution (Director of Public Works) 12 RESOLUTION 19500, ACCEPTING BIDS AND AWARDING CONTRACT FOR THE INST ALLATION OF TRAFFIC SIGNAL SYSTEM AT ALBANY A VENUE AND MAIN STREET TO T & M ELECTRIC, INC, DBA PERRY ELECTRIC On May 19, 1999, sealed bids were received fi\,m three electrical contractors for the installation oftramc signal system at Albany Avenue and Main Street. T & M Electric, Inc., dba Perry Electric, submitted a low bid 01'$67, l7(). Statl'has reviewed the low bid and found it reasonable Stalfrecommends awarding the purchase contract It" said traffic signal system at Albany Avenue and Main Street to T & M Electric, Inc, dba Perry Electric Statrrecommendation Council adopt the resolution. (Director of Public Works) Agenda 4 June 22,1999 ORAL COMMUN1CA nONS PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES the ./á/lowi/lg items have heell ad""rtised (/1Il!or I}()sled (/.1' IJ//h/ic heari/lgs as reqllired hy law If yo II wish 10 speak 10 mI.\' ilem, IJlease jill 0111 a "Reqllcsl 10 Speak"form (avai/ahle inlhe loMy) and sllhmil illo the ('ily ('led I)/'ior 10 the meeting. 13. PUBLIC HEARING TO CONSIDER THE MODIFICATION OF THE EXISTING TRANSPORTATION DEVELOPMENT IMPACT FEE (CONTINUED FROM JUNE 8, 1999) Staff recommendation: The public hearing be continued to the meeting of July 27, 1999, (Director of Public Works) 14. PUBLIC HEARING TO CONSIDER TESTIMONY OF TIlE FISCAL YEAR 1999/2000 LEVY OF ASSESSMENTS FORCITY OPEN SPACE DISTRICTS 1-9,11, 15, 17, 18,20, 23,24,26,31.33, AND EASTLAKE MAINTENANCE DISTRICT NUMBER I The City administers 25 open space districts established over the last 25 years. The districts provide the mechanism to finance the maintenance or comllH1I1 open space areas (canyons, trails, lIIedians, etc.) associated with and benefitting that particular development. As part of this process, a levy of an annual assessment is necessary to enable the City to collect lùnds for the proposed open space maintenance. Tonight's action continues the process for Fiscal Year 1999/2000. On May I X, 1999, Council approved the open space reports on assessments for all existing Open Space districts and set a public hearing It)r tonight to take testimony on the proposed assessments. A second public hearing is scheduled tì.)r July 13, 1999 Stalfrecommendation: Council open the public hearing, take testimony. and close the public hearing. (Director of Public Works) 15 PUBLIC HEARING TO CONSIDER TESTIMONY ON THE FISCAL YEAR 1999/2000 LEVY OF ASSESSMENTS FOR CITY OPEN SPACE DISTRICT NUMBER 10 Based on the advice of the City Attorney, this item has hecn separated due to contlict of interest concerns since a Councilmember owns property subject to the proposed assessment in this district Staff recommendation Council opentbe public bearing, take testimony, and close the public hearing. (Director of Public Wnrks) 16. PUBLIC HEARING TO CONSIDER TESTIMONY ON TilE FISCAL YEAR 1999/2000 LEVY OF ASSESSMENTS FOR CITY OPEN SPACE DISTRICT NUMBER 14 Based on the advice of tbe City Attnrney, this item has been separated due to conflict of interest concerns since a Councilmember owns property subject to the proposed assessment in this district --_._--,-,-,--- Agenda 5 June 22, 1999 Statfrecommendation Council open the public hearing. take testimony, and close the public hearing. (Director of Public Works) 17. PUBLIC HEARING TO CONSIDER GRANTING A WASTE MANAGEMENT FRANCHISE RENEWAL TO PACIFIC WASTE SERVICES THROUGH SEPTEMBER 4,2007 WITH AN OPTION TO EXTEND UNTIL TIlE YEAR 2015 SUBJECT TO SATISFACTORY PERFORMANCE, AND POTENTIAL ADDITIONAL EXTENSIONS AT CITY'S SOLE OPTION UNTIL THE YEAR 2029 A. ORDINANCE 2792, GRANTING A WASTE MANAGEMENT FRANCHISE RENEWAL TO PACIFIC WASTE SER VICES THROUGH SEPTEMBER 4,2007 WITH AN OPTION TO EXTEND UNTIL THE YEAR 2015 SUBJECT TO SATISFACTORY PERFORMANCE, AND POTENTIAL ADDITIONAL EXTENSIONS AT CITY'S SOLE OPTION UNTIL THE YEAR 2029 IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE FRANCHISE AGREEMENT, AND AUTHORIZING THE MAYOR TO EXECUTE SAME (FIRST READING) B. RESOLUTION 19501, APPROVING IN CONCEPT A LANDFILL AGREEMENT WITH OTAY LANDFILL, INC REGARDING CITY TRASH FLOW AND LANDFILL MITIGA TlON The current solid waste and recycling Franchise Agreement expires on September 4, 2002. In anticipation of the end of that agreement, staffhas worked with the City's current service provider, Paciiìc Waste Management, to develop the terms and conditions for a proposed solid waste management Franchise renewal and a companion landtill agreement Staff recommendation Council place the ordinance on tirst reading (Conservation Coordinator) ACTION ITEMS The items ¡¡sled ill this seetmll oflhe agell<lu ure t'XI,,'cIl'd 10 t'hClI .\'IIhslulllial discussiolls ulld dehhautiol/.\ hy Iht' ('()/(llei/. stulf, or //It'll/has o/lhe IJllhhc, ¡he items will he uJIIsidered illl/it'ldilullr hI' Ihe ('OIlIlClI, ulld stul! /'eC()/llIlIelldutioIlS may, ill cerluill cases, he IJrest'lIled III Ihe ultemulil'e. IfnJ/( 11'1.,11 10 .\fJeuk Oil OIlY item, pleusefill 0111 u ''/It'lfJ/t'SIIO ,,!,,'uk "./oml (""(fIluhle IIIlht' lohhy) Ulll! suhmil it 10 the (III' ('led prior to Ihe II/eet/llg. 18. RESOLUTION 19502, APPROVING A FIRST AMENDMENT TO THE AGREEMENT WITH MCGILL MARTIN SELF, INC, FOR PROJECT MANAGEMENT, PLAN REVIEW AND FINANCIAL SERVICES FOR TilE CONSTRUCTION OF OLYMPIC PARKWAY AND APPROPRIATING $(¡94,()()() FROM THE I!NAPPROPRIATED BALANCE OF THE TRANSPORTATION DEV¡'LOPMENT IMPACT FEE FUND TO PROJECT STM-33l (4/5TII'S VOlT REQlIIRED) The consultant, McGill Martin SeW Inc has been reviewing plans t)r the construction of Olympic Parkway and the channel easterly of Brandywine and coordinating the Olympic Parkway project including its tinancing via a tinancing district such as a community làcility Agenda (, June 22, 1999 district. Due to a desire to have the consultant perti1rl11 additional duties to ensure successful construction and timing of improvements of this important roadway segment, it is necessary to extend the consultant's contract and increase the consultant's compensation. Staff recommendation: Council adopt the resolution (Director of Public Works) 19. RESOLUTION 19503, COUNCIL, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NUMBER 97-03 (OTAY RANCH MCMILLIN SPA ONE), AUTHORIZING AND PROVIDING FOR TIlE ISSUANCE OF SPECIAL TAX BONDS OF THE DISTRICT, APPROVING THE FORM OF BOND INDENTURE, BOND PURCHASE CONTRACT AND OTHER DOCUMENTS, AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION THEREWITH Community Facilities District 97-3 will provide public tilllding ti)r the acquisition of public improvements within the Otav Ranch McMillin project. The district was formed pursuant to the provisions of the "Mello-Rolls Community Facilities Act of I ')X2" Tonight, Council will consider authorizing the issuance of blinds in an amllunt nllt to exceed $12, 250,000 and approving certain related documents f()' Community Facilities District 97-3 Staffrecommendation. Council adopt the reslliution (Director ofPuhlic Works and Director of Finance) ITEMS PULLED FROM TIlE CONSENT CALENnAR OTHER BUSINESS 20. CITY MANAGER'S REPORTS A Scheduling of meetings 21. MAYOR'S REPORTS A. Ratitication of appointments tllthe BlIard of Ethics Teresa Thomas (to till vacancy created by Member Schulman, whose term expires June 30, 2000); and Kenneth Culver (to till vacancy created by Mcmbcr DeVlIre, whose term expires June 30, 2003): and to the Mobilebome Rent Review ClImmission (Fx-Oilicio) Edmund "Pat" LaPierre (to fill vacancv created hv Commissioner Biggers. whose term expires June 30,2001) B. Ratitication of reappointment tll the Baytì'ont Conservancy Trust Susan Fuller, Judy Schulenberg, and Dr Patrick Ahbott 22. COUNCIL COMMENTS ADJOURNMENT to a Closed Session and tbence to an Adjourned Meeting of June 29, 1999, at 600 pm. in the Council Chambers *** An Adjourned Meeting of the Redevelopment Agency will be held immediately ¡()lIowing the City CoulKil Mceting*** June 17, 1999 TO: The Honorable Mayor and City Council FROM: David D. Rowlands, Jr., City Manager V SUBJECT: City Council Meeting of June 22 , 1999 This will transmit the agenda and related materials for the regular City Council meeting of Tuesday, June 22, 1999, Comments regarding the Written Communications are as follows: 5a, This is a letter from the City Attorney stating that to the best of his knowledge from observance of actions take in Closed Session on 6/8/99, there were no actions taken which are required under the Brown Act to be reported. IT IS RECOMMENDED THAT THIS LETTER BE RECEIVED AND FILED. 5b, This is a letter from Walter Norris, President, Mother Goose Parade, requesting a donation of $2,500 for the November 21, 1999, "Mother Goose Honors Disabled Children" Parade, This request does not meet the criteria established under Council Policy 159-02 for funding of private organizations or individuals and IT IS THEREFORE RECOMMENDED THAT THIS REQUEST BE DENIED, 5c, This is a letter from Richard A. Pena requesting that the Bonita Historical Museum be included in the City's budget. $1,000 HAS BEEN RECOMMENDED TO BE INCLUDED IN THE COMMUNITY PROMOTIONS BUDGET FOR 1999-2000. DDR:mab , _....,,----,_... -,.....-..--., "I declare under penalty of perjury that I am employed by the City of Chula Vista in the Office of the City CierI< nnd that I posted this Agenda/Notice on the Bulletin Board at Tuesday, June 22, ¡ 999 the PUb. li~~.it Building rp .. II on . Council Chambers 600 pili. DATED, SIGNED Public Services BUlldmg (immediately following the City Cou cil ceting) CHlJLA VISTA CITY COlJNCIL CLOSED SESSION AGENDA Effective April I, 1994, there have been new amendments to the Brown Act. Unless the City Attorney, the City Manager or the City Council states otherwise at this time, the Council will discuss and deliberate on the following items of business which are permitted by law to be the subject of a closed session discussion, and which the Council is advised should be discussed in closed session to best protect the interests of the City. The Council is required by law to return to open session, issue any reports offinal action taken in closed session, and the votes taken However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at this point in order to save costs so that the Council's return ti'om closed session, reports of tìnal action taken, and adjournment will not be videotaped. Nevertheless, the rCplH't offinal action taken will be recorded in the minutes which will be available in the City Clerk's Onice. CONFERENCE WITH LEGAL COUNSEL REGARDING: Existing litigation pursuant to GoVl'rnment Code Sectioll 54956.9(a) I Fritsch v. City of Chula Vista 2. In Re White Water Canyon . Significant exposure to litigation IHII'sllant to GoveJ'lllllcnt Code Section 54956. 9(b) lOne case. ~~ft.. -.- ~-..; -..;...,,;;'-.¡¡;;: ~~~~ CllY OF CHUlA VISfA OFFICE OF THE CITY ATTORNEY Date: June 11, 1999 To: The Honorable Mayor and city Council From: John M. Kaheny, city Attorne~~ Re: Report Regarding Actions Taken in Closed Session for the Meeting of 6/8/99 The City Council met in Closed Session on 6/8/99 to discuss: CONFERENCE WITH LABOR NEGOTIATOR - Pursuant to Government Code section 54957,6: . peA Negotiations The City Attorney hereby reports to the best of his knowledge from observance of actions taken in the Closed Session in which the City Attorney participated, that there were no reportable actions which are required under the Brown Act to be reported, JMK: 19k H" \home\lorraine\lt\clo"e". no 5Â-j 276 FOURTH AVENUE. CHULA VISTA. CALIFORNIA 91910. (619) 691-5037. FAX (619) 409-5823 ~"c_."~, ",,~'" '-' -" .,,- .... -".........------,------....-..-'-.-- AlWAn T H [ SUNDAY 8HDH THANKSGIVING . ß @ r ~ ':11 ir---" ..---- ç" Ii '/ MAY 2 "1999 /~ ,flrlON q\ May 13,1999 QQ ~ -f-f -<-< ::IJ 00 ~ fT1 õm (") City of Chula Vista mo Honorable Mayor Shirley Horton ::O::t: I f"1 ="':<::: 00 City Councilmembers v>õ < 276 Fourth Avenue 0» -0 fT1 m< ~ 0 Chula Vista, CA 91910-2631 --r¡- -(/) ö o~ ~ Dear Mayor Horton and Councilmembers: The Mother Goose Parade Association would like your assistance in sponsoring the 1999 parade. Since it's inception in 1947, the Mother Goose Parade has been a day of uninhibited joy to the children of San Diego County and many of those children are residents of Chula Vista. The Mother Goose Parade, which is the largest single day event in San Diego County, is celebrating ~s 531d year. The parade is always held on the Sunday before Thanksgiving, this year that will be November 21, 1999 and is viewed by hundreds of thousands of spectators. This year, with your help of a $2,500 donation, we plan on making the Mother Goose Parade the largest and best ever. Our parade theme is 'Mother Goose Honors Disabled Children" and we plan to have certain events that encompass this theme. At the end of the year, any proceeds will be donated to a local children's charity. We have a full 21 member Board of Directors, which is full of new ideas and enthusiasm. We are also inviting Chula Vista, along with neighboring cities, to participate in a City Float Competition. We believe that this competition will be a great way to ensure that this year's Mother Goose Parade is the biggest and best ever. Thanking you in advance for your support. Sincerely, -~~Y\~ "walte'i"Norris , President WRITTEN COMMUNICA T~NS ceo' ~~(.3) Þ t/,-' 7'r V ~.~ " 38 -- / ,h , dk' ~ <¿)¿ia8Y"AI~r;1 186, [[[1JON, ¡I 91818 6194448711 ¡IX 619444,3971 ----- 5153 Sunnyside Drive Bonita, CA, 91902 May 24,1999 Os] , .di =< ....... 0J ~.......- ---, ::0 Honorable Shirley Horton p~ - T me-:> !II! C') ::0 ::I: ... T Mayor, City of ChlÙa Vista =>::c: VI ~ç < 2764thAvenue m< ;a T ::J '/) 0 ChlÙa Vista, CA, 91910 :~:.:: ü1 Dear Shirley, I am sending you and the City Councilthe enclosed infonnation and am hoping that the Boruta Histoncal Museum IS Included In the corning city budget. The funds requested are to be added to our general fund. They will not be used for any specific item. e that the infonnation I enclose is sufficient. If not I can be reached at home, 479-0678. you for any assistance you might be able to give us. œ e::4j CGvlK;\ c.;ty MCuY<9é'í F'f¥\.flL£- C¿' .' C;; ~:J) WRmEN COMMut.,JICA TIONS ç¿; . cfn ~.yy 7 . . . . . . . . . . . . . . . . . . . . . . . ~C~/ --'----"-"'-"'-' For Fiscal Years of 1998-1999 and 1999-2000 REQUEST FOR FUNDS FROM cm OF CHULA VISTA 1. Organization - Bonita Historical Society 2. Address - 4035 Bonita Road, Bonita, CA, 91902 3. Telephone 267 5141 (museum) and 479 0678 (requester) 4. Contact Person - Richard Pena at 479 0678 or Carol Hammond at 421 7086 5. Amount Requested - $1000. 6. Proposed use of funds. General operating funds for the museum for one year, funds to be combined with other monies toward balancing the museum's operating budget. 7. No funding has ever been received from the city. 5C-2 INTRODUCTION (A Short History) The Bonita Historical Museum, the only one of its kind in the South County, was founded in 1987. In the beginning it was housed in a portion of a small shopping center, across Bonita Road from its present location. It was only supposed to last one weekend. Carol Hammond and Richard Yokley, two members of the Bonita Business and Professional Association had assembled some old dairy implements and fire fighting equipment in a "museum" manner. This, coupled with a few photographs, was the start. The idea caught on. It proved to be so popular that the weekend was extended into weeks and then months. The landlord said that the space could be used as long as he did not have a renter. And so it grew and flourished until a devastating fire in the shopping center in January of 1992 nearly put it out for good. But like the Phoenix of yore it remained in operation but with no building. It was a sort of an automobile trunk museum with staff members taking the museum to schools, and other places for exhibit. Today it is housed in an historic building, a former firehouse on Bonita Road. Since its founding it has become incorporated and has 501(3)C status. Community members from Chula Vista, National City and the unincorporated area have come forward with photographs and other material depicting the rich heritage of the South Bay. A seven-member board of directors runs the museum, and society. There are approximately twenty volunteers who regularly take part in the operation of the museum. There is one paid employee, a museum director. Financial operation of the organization relies heavily on its membership and donations. Staff members, however, are constantly looking for other means of financing. Grant proposals are being written for submission to businesses and other agencies. The museum is visited by hundreds of people each year. Many classes of children from Chula Vista Schools regularly come to the museum on field trips during the school year. The museum has recently been a host to many fourth grade classes of the area seeing and hearing the California Mission Series. It is expected that these numbers will increase as we enter the year 2000. The museum is there for the public good. Sé~3 COUNCIL AGENDA STATEMENT 2 Item: Meeting Date: 06/22/99 ITEM TITLE: RESOLUTION /9 '19 r ACCEPTING DONATION, AUTHORIZING EXPENDITURE AND APPROPRIATING SAID DONATED FUNDS TO THE POLICE DEPARTMENT RESERVE MOUNTED UNIT. ~' / SUBMITTED BY: Chief of Police ,/ REVIEWED BY: City Manager ~-Z/ (4/5ths Vote: Yes -1L No_) The Police Department Reserve Mounted Unit recently received an unsolicited donation in the amount of $500 from the San Diego Gas & Electric Company. The donation was presented to the Mounted Unit to underwrite the purchase of replacement tack for City owned Police saddles, RECOMMENDA nON: That the City Council accept the donations and authorize expenditure of said funds to the Police Department Reserve Mounted Unit for the upkeep and replacement of tack, BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On April 21, 1999, the Chula Vista Mounted Police held its regular monthly meeting. During the meeting a discussion was held about the City owned saddles, bridles and breastplates and other mounted equipment and tack. Further discussion was held on resources and how to raise money for the repairs or replacement. Reserve Captain Dave Lowe, who has been a member of the Mounted Unit for more than eight years and is employed by SDG&E, presented a check from SDG&E in the amount of $500, The Chula Vista Mounted Police represents the City throughout San Diego and Imperial Counties. The Unit participates in parades, special events, search and rescue and law enforcement activities, This is an example of the Police Department commitment to maintaining a partnership with the community to meet contemporary and future challenges. FISCAL IMPACT: There are no matching funds required or general fund impact, J:IUSR\ADMIN\SCSIAI13Sldonation.doc 7-/ RESOLUTION /7'1/7;/ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING DONATION, AUTHORIZING EXPENDITURE AND APPROPRIATING SAID DONATED FUNDS TO THE POLICE DEPARTMENT RESERVE MOUNTED UNIT. WHEREAS, the Chula Vista Mounted Police represents the City throughout San Diego and Imperial Counties by participating in parades, special events, search and rescue and law enforcement activities; and, WHEREAS, the Chula Vista Mounted Unit is in need of funds for repair of City owned saddles, bridles, breastplates and other mounted equipment and tack; and, WHEREAS, the Police Department Reserve Mounted Unit received an unsolicited donation in the amount of $500 from San Diego Gas & Electric Company for the purchase of replacement tack for City-owned saddles; and, WHEREAS, it is recommended that the donation be accepted and the expenditure for the upkeep and replacement of tack be authorized and appropriated, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista hereby accepts the donation of $500 from San Diego Gas & Electric Company and appropriates such donation for Chula Vista Police Department's Mounted Unit to be used for the replacement of tack for City-owned saddles, preslC:: Approved as to form by: ~. {L.- --.. Richard P. Emerson Police Chief J: \ USR \AD MINIS CSIRESOS\dona tion. doc fì - J--.. ------,-------_._.. COUNCIL AGENDA STATEMENT 6 Item: Meeting Date: 06/22/99 ITEM TITLE: /) , Resolution /9l/'1ß Approving an application for grant funds to the State of California Department of Parks and Recreation for three park projects ß Resolution 19171 Accepting a grant in the amount of $496,440 from the State of California for three park projects (Tiffany Park, Parkway Pool Re-Surfacing-Lamping, and South Bay Community Services Trolley Trestle Project); and Directing the City Manager to include the Trolley Trestle Project grant funds in the FY 99/00 proposed budgetì and Authorizing the Director of Library and Recreation, or his designee, to sign the appropriate documentation with the State of California to accept the grant funds (Acceptance of the grant portion for South Bay Community Services Trolley Trestle Project is contingent upon the Redevelopment Agency SUBMITTED BY: approval of the project on the A~enda at this meeting) Library and Recreation Director REVIEWED BY: City Manager~~ (4/5ths Vote: Yes - No Å) The City of Chula Vista has received notice of the award of grant funds from the State of California in the amount of $496,440 for three projects; two of which are City of Chula Vista Capital Improvement Projects (CIP), Tiffany Park and Parkway Pool (Attachment "A"). The third award of funds is to be used for a housing site being developed by South Bay Community Services, entitled Trolley Trestle. For this project, the City of Chula Vista will act as a funding dispersal agent to South Bay Community Services. The City must now submit an application for these grant funds to the State of California, Department of Parks and Recreation, in order to receive the funds. The State of California allows the City to apply for and accept the grant simultaneously, STAFF RECOMMENDATION: That the City Council adopt the Resolution(s): 1. Approving the application to the State of California, Department of Parks and Recreation, for grant funds for three projects; and 2. Accepting the grant in the amount of $496,440 from the State of California, Department of Parks and Recreation, for three projects (with the exception of accepting the grant funds for the South Bay Community Services Trolley Trestle project contingent upon the Redevelopment Agency approval of the project on the Agency agenda at this meeting); and [E:lhomelparksœcla113Istalegrt - 06.Q9-99] 1 all ,-.----- -...---. .._, ..--.--,-...--- 3. Directing the City Manager to include the grant funds in the FY 99/00 proposed budget; and 4, Authorizing the Director of Library and Recreation, or his designee, to sign the appropriate and required grant documentation from the State. BOARDS/COMMISSIONS RECOMMENDATION: NIA DISCUSSION: The Legislature and the Governor approved the grant funds for FY 98/99, based upon a request by Senator Steve Peace, for various projects in the City of Chula Vista, These projects are: Tiffanv Park - $98,500 The existing playground equipment at Tiffany Park is deteriorating and is in need of replacement with play equipment that is compatible with the American Disabilities Act (ADA), A new cement enclosure, new play equipment, resilient surface, and accessibility is required. The CIP for Tiffany Park is proposed to begin in FY 99/00, This grant completely funds the project. This project will be administered by the Public Works Department - Parks Maintenance Division, Parkwav Pool Re-Surfacina-Lamcina - $159,190 The scope of work in this project is to remove and replace the existing pool plaster lining; remove and replace the existing underwater surfacing; and re-Iamp the Parkway Pool. The existing pool lining has deteriorated, and cannot be properly cleaned and has been patched where the plaster is lifting. Safety issues include cuts and abrasions to participants' feet from the existing surface. The underwater lighting does not comply with current code. This project was originally approved as a CIP in FY 98/99; funded with Park Development and Acquisition (PAD) Funds, The project will now be funded with the grant in an amount of $151 ,690, and from PAD, in the amount of $7,500, for the project total of$159,190. The City has located a competent consultant who is available to perform this work at the beginning of the new fiscal year. Staff anticipates construction to begin in November, 1999. The appropriation of both of the above projects (total of $257,690) will be considered by the Council during the CIP budget process on June 29, 1999; and thus requires no action from the Council at this meeting, other than applying for and accepting the grant. South Bav Communitv Services - Trollev Trestle Proiect - $246,250 The City of Chula Vista is awarded grant funds, in the amount of $246,250, by the State of California, for South Bay Community Services' housing project, Trolley Trestle. For this project, the City will "pass through the funds" to South Bay Community Services, by acting as a "funding dispersal agent." The project, the Trolley Trestle, is an 11 unit affordable housing development for youth leaving the foster care system. The project is located on the corner of Ada Street and Industrial Boulevard. Immediately adjacent to the Trolley Trestle property is Trolley Terrace Townhomes, an 18 unit affordable housing development targeted to house families earning 40% of area median income. [E,lhomelparkscocla113Istalegrt - 06'()9,99] 2 [f---;L The Townhome project has also been developed by South Bay Community Services. The two developments will blend together and appear as one property. South Bay Community Services is also receiving funding for this project from other sources, the County of San Diego, and the City of Chula Vista Community Development Department. The funding source from the City is a $300,000 commitment from the Low and Moderate Income Housing Fund. The approval for these funds is being considered at the June 22, 1999 Joint Redevelopment AgencylCity Council meeting, The Trolley Trestle project was approved by the Design Review Commission at its May 17, 1999 meeting, City Aareement with South Bav Community Services for Disbursal of Grant Funds - An agreement between the City and South Bay Community Services, is required by the State of California Department of Parks and Recreation. The agreement binds South Bay Community Services to abide by all rules and regulations required by the State of California for receipt and use of grant funds. The Disposition and Development Agreement (DDA) being considered on the Redevelopment Agency Agenda at this same meeting for the Trolley Trestle Project, when approved by the Agency, will also act as the binding agreement for South Bay Community Services receipt of State Parks and Recreation grant funds through the City of Chula Vista. In essence, with the City acting as disbursal agent, South Bay Community Services will request reimbursement of project costs, by providing the City with required documentation. The City, in turn, will send reimbursement documentation to the State. Grant funds will be issued by the State to the City, and the City will issue funds to South Bay Community Services. This is the full extent of the City's participation in the project as a funding "pass through." The Director of Library and Recreation, or his designee, can sign this agreement. FISCAL IMPACT: The State of California Legislature has awarded the City of Chula Vista grant funds, disbursed through the State of California Parks and Recreation Department, for the following projects: Tiffany Park (PR-225) $ 98,900 Parkway Pool Re-Surfacing-Lamping (PR-223) $151,690 South Bay Community Services - Trolley Trestle $246,250 Appropriation of the grant funds for Tiffany Park, Parkway Pool, and the Trolley Trestle Project, will be considered by the City Council during the CIP budget process on June 29, 1999, Attachment: "A"- Grant Letter from State [E,lhomelparksceclat 131stalegrt - 06-O9,99] 3 ;>5-] RESOLUTION NO, J91/7} - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AN APPLICATION FOR GRANT FUNDS TO THE STATE OF CALIFORNIA DEPARTMENT OF PARKS AND RECREATION FOR THREE PARK PROJECTS WHEREAS, the Legislature and Governor of the State of California have approved a grant for the project shown above; and WHEREAS, the State Department of Parks and Recreation has been delegated the responsibility for the administration of the grant project, setting up necessary procedures; and WHEREAS, said procedures established by the State Department of Parks and Recreation require the applicant to certify by resolution approval of the application before submission of said application to the state; and WHEREAS, said application contains assurances that the applicant must comply with; and WHEREAS, the applicant will enter into an agreement with the State of California for the subject projects, NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista: 1. Approves the filing of an application on three park projects for assistance for the above projects; and 2, certifies that said agency understands the assurances and certification in the application form; and 3, certifies that said agency has or will have sufficient funds to operate and maintain the projects. 4, Certifies that said agency has reviewed and understands the General provision contained in the State/local agreement shown in the Procedural Guide, BE IT FURTHER RESOLVED that the city Council hereby appoints the Director of Library and Recreation as agent to conduct all negotiations, execute and submit all documents including, but not limited to applications, agreements, amendments, payment request and so on, which may be necessary for the completion of the aforementioned projects. Presented by Approved as to form by ('Æf?~~Q ~M. Kaheny, City ~ney David Palmer, Director of Library and Recreation H, \home\attorney\reso\3park .grt f)/9 - / RESOLUTION NO, /971?~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING A GRANT IN THE AMOUNT OF $496,440 FROM THE STATE OF CALIFORNIA FOR THREE PARK PROJECTS (TIFFANY PARK, PARKWAY POOL RE-SURFACING-LAMPING, AND SOUTH BAY COMMUNITY SERVICES TROLLEY TRESTLE PROJECT); AND DIRECTING THE CITY MANAGER TO INCLUDE THE TROLLEY TRESTLE PROJECT GRANT FUNDS IN THE FY 99/00 PROPOSED BUDGET; AND AUTHORIZING THE DIRECTOR OF LIBRARY AND RECREATION, OR HIS DESIGNEE, TO SIGN THE APPROPRIATE DOCUMENTS WITH THE STATE OF CALIFORNIA TO ACCEPT THE GRANT FUNDS WHEREAS, the city of Chula vista has received notice of the award of grant funds from the State of California in the amount of $496,440 for three projects; two of which are City of Chula vista Capital Improvement projects (CIP), Tiffany park and Parkway Pool; and WHEREAS, the third award of funds is to be used for a housing site being developed by South Bay Community Services, entitled Trolley Trestle for which the City will act as a funding dispersal agent to South Bay Community Services; and WHEREAS, the City must now submit an application for these grant funds to the State of California Department of Parks and Recreation in order to receive the funds; and WHEREAS, the process whereby the State of California awards grants and the City can accept the grant and authorize appropriations, while application to the State is being made, can occur simultaneously. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby accept a grant in the amount of $496,440 from the State of California for three park projects (Tiffany, Parkway Pool Re-Surfacing-Lamping, and South Bay Community Services Trolley Trestle Project.) BE IT FURTHER RESOLVED that the city Manager is hereby directed to include the grant funds in the FY 99/00 proposed budget. BE IT FURTHER RESOLVED that the Director of Library and Recreation, or his designee, is hereby authorized to sign the appropriate and required grant documentation from the State. Presented by Approved as to form by John p, Lippit t, Director of Public Works COUNCIL AGENDA STATEMENT ITEM No. Í- MEETING DATE 08/22/99 /iI1~ ITEM TITLE: RESOLUTION A PROVING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AGREEMENTS BETWEEN THE CITY OF CHULA VISTA AND VARIOUS COMMUNITY GROUPS AND CITY DEPARTMENTS AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENTS SUBMITTED BY: COMMUNITY DEVELOPMENT DIRECTOR w.~ì ~ REVIEWED BY: CITY MANAGER ~%~I (4/5TH8 VOTE: VES..JL. NO..J f"': On May 4, 1999, the City Council approved CDBG funds In the amount of $342,734 for fifteen (15) public service programs; $179,000 tor four (4) community project programs; $142,000 for five (5) economic development programs; $77,500 tor two (2) community capital improvement programs; $1,108,341 for ten (10) city capital improvement programs; and $439,801 for administration and planning/coordination activities. The U.S. Department of Housing and Urban Development (HUD) requires a written agreement between the City and each subrecipient of CDBG and HOME tunds. Since HOME funds are primarily used for the provision of affordable housing, these agreements will be brought forward as projects are negotiated. That the City Council adopt the resolution approving the community group and City agreements and authorize the Mayor to execute the agreements. The Economic Development Commission, Housing Advisory Commission, and the International Friendship Commission made funding recommendations which were considered by Council in approving the CDBG budget on May 4,1999. Consolidated Annual Plan The Consolidated Annual Plan, which details how CDBG and HOME funds will be expended, was due to HUD on May 15, 1999. After a preliminary review ot the Plan by HUD, some minor changes to the budget were recommended. It was determined by HUD that the reallocated funds in the amount of $269,876 could not be added to the entitlement amount of $2,020,000 to be calculated for Public Service or Administration and Planning activities since these activities have a tederally mandated funding cap. The $269,876 will, however, be made available to fund Community Projects, Economic Development and Capital Improvement Program requests for program year 2000,01. However, program income can be added to the entitlement and used to calculate the Public Service and Administration and Planning budgets. Staff has identified $220,000 in program Income for a total budget of $2,240,000 The previous Council approved CDBG budget was $2,289,876. The difference of $49,876 will not have an impact on any of the programs and projects recommended for CDBG funding since alternative sources of funds have been Identltied. The table on the following page delineates the changes to the CDBG budget. 9// ._-" --. ,.._,,--,-- PAGE 2, ITEM 3-- MEETING DATE 06/22/99 Changes to CDBG Budget Funding Category Program Previous Current Impact Recommendation Recommendation Public Service County Voucher $8,318 $0 This program will be funded from Program the Low and Moderate Income Housino Fund Economic Development BECA $40,000 $0 BECA has Identified $60,000 In program Income from the Economic Development Administration grant and has withdrawn their request for CDBG fundlnq this vear Administration/Planning SBCS Office Rent $29,735 $0 Staff recommends funding the CDBG portion of the rent from the Low and Moderate Income Houslnq fund. The previously approved Public Service budget will decrease tram $342,734 to $336,000. This decrease of $6,734 will not have a significant impact on the Public Service budget. Staff recommends funding the County of San Diego Voucher Program with Low and Moderate Income Housing tunds instead of CDBG tunds. The Low-Mod fund has contributed to this program for the past two years. Staff will need to bring this item forward for Redevelopment Agency approval at a later date since the issue arose too late to incorporate with the proposed FY 99/00 budget. The remaining Public Service programs will not be impacted. The Executive Director of BECA has withdrawn their request for CDBG funds for the FY 1999-00 program year. BECA has accumulated approximately $60,000 in program income from the Economic Development Administration grant and will use these tunds to Implement their program. HUD will no longer allow South Bay Community Services office rent to be funded from any category other than Public Services. It has always been the desire of South Bay Community Services that this request for tunds not compete with other Public Service requests. Staff has determined that for FY 1999-00, Low and Moderate Income Housing funds can support the $29,735 request. This item will also be brought forward for Redevelopment Agency approval at a later date as part of the budget request above. FundinQ AQreements The agreements between the City and the subgrantees cover the period from July 1, 1999 to June 30, 2000. Each agreement has several exhibits attached which are Incorporated Into the agreements. An example of a typical agreement is attached as Exhibit 1 along with the tollowlng attachments: Exhibit A: The Statement of Work and Performances Schedule describes the service the agency will be providing and the estimated number of people who will be provided each of these services each month. This performance schedule will be used to monitor each agency's progress in completing the scope of work. Exhibit B: The Itemized Budget details exactly how the agency Intends to expend the CDBG funds. This Itemized budget will be used to monitor expenditures throughout the year. 9/Ä -------- ------------,-_._-,--" PAGE 3. ITEM ~ MEETING DATE OS/25/88 Exhibit C: The FY 1999 Section BlPublic Housing Income Limits (effective January 1999) will be used to determine the number of low income households/persons served. Each program Is required to serve a minimum of 51 percent low-income persons/households. Exhibit D: City of Chula Vista Party D/sc/osure Form. The agreements are with the following community organizations and City departments for the purpose and amount stated: Public Service Organization CDBG Grant Amount Chula Vista Aouatic Association $5,400 Chula Vista Youth Services Network $119,000 Sharp HealthCare Foundation $25,000 Meals on Wheels Greater San Diego $14,000 St. Charles Nutrition Center $4,500 Lutheran Social Services - Shared Housinq $4,000 Adult Protective Services $12,000 Countv of San Dieao - Voucher Proaram $0 Lutheran Social Services - Proiect Hand $12,000 Chula Vista Family Violence & Prevention Coalition $34,840 Thursdav's Meal $8,000 Chula Vista Police Department - Crime Free Multi Housinq $9,679 Chula Vista Therapeutic Proqram $26,174 Chula Vista Llteracv Team Center $12,000 Otay Recreation Center $47,826 Total $334,419 Community Proiects Organization CDBG Grant Amount Lutheran Social Services - Caring Neighbor Proqram $24,000 SBCS Graffiti Eradication Proaram $30,000 Planning & Building Division $60,000 Community Preservation Proqram SBCS Community Development Proaram $65,000 Total $179,000 Economic Development Organization CDBG Grant Amount Southwestern Colleqe - South County Career Center $16,000 SBCSIYMCA Teen Center $26,500 Chicano Federation $5,000 Community Development Department $55,000 Business Retention/Outreach Specialist Border Environmental Commerce Alliance $0 Total $102,500 9-3 PAGE 4, ITEM ~ MEETING DATE 06/22/99 Non Profit CaDitallmDrovement Proaram Organization CDBG Grant Amount Boys & Girls Club of Chula Vista $52,500 South Bay Family YMCA $25,000 Fourth Avenue Improvements Total $77,500 Administration & Plannina Organization CDBG Grant Amount South Bay Family YMCA $28,000 Human Services Council South Bav Community Services - Office Rent $0 Reoional Task Force on the Homeless $1,000 Library & Recreation Department $9,912 Information & Referral Specialist Fair Housinq Council of San Dieqo $38,000 Total $76,912 These contracts, totaling $812,481, will be funded out of the City's 1999-00 CDBG and HOME entitlement funding ($770,331 from CDBG and $42,150 from HOME). Funds In the amount of $38,053 will be requested at a later date from the Low and Moderate Income Housing Fund which currently has a balance of $4.5 million. In the remote event that HUD should withdraw the City's CDBG and HOME funding, the agreements provide that the City Is not obligated to compensate the subgrantees tor program expenditures. Exhibit 1 Example of FY 1998-99 CDBG Agreement Exhibit A Statement of Work and Performances Schedule Exhibit B Itemized Budget Exhibit C Section 8/Public Housing Income limits Exhibit D City of Chula Vista Party Disclosure Form 9-J/ RESOLUTION NO. /;; yq / RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AGREEMENTS BETWEEN THE CITY OF CHULA VISTA AND VARIOUS COMMUNITY GROUPS AND CITY DEPARTMENTS AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENTS WHEREAS, the City participates in the Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) programs, a principal goal of which is to fund projects and services which will benefit low-income persons/households; and WHEREAS, the City Council of the City of Chula Vista held a public hearing on April 13, 1999 to review and receive public comment on the CDBG and HOME funding requests for fiscal year 1999- 00; and WHEREAS, the U.S. Department of Housing and Urban Development (HUD) requires a 3D-day comment period on the Consolidated Annual Plan. This comment period began April 2, 1999 and ended on May 3,1999; and WHEREAS, the City is desirous of having certain services for the benefit of low-income persons/households performed by the Grantee; and WHEREAS, Grantees warrant and represent that they are experienced and staffed in a manner such that they can prepare and deliver the services required by the City of Chula Vista ("Grantor") within the timeframe herein provided in all accordance with the terms and conditions of this agreement; and WHEREAS, in the event that HUD should withdraw the City's CDBG and HOME funding, the City is not obligated to compensate the subgrantees for program expenditures. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby determine as follows: SECTION 1. The City Council does hereby approve the following CDBG Agreements, known by the following Document Number adjacent thereto, copies of which are on file in the Office of the City Clerk. c¡-s- CDBG Agreements FY 1999-00 Oraanization Contract Number Funds Allocated Public Service Cateaory Chula Vista Aquatic Association CO99- $5,400 Chura Vista Youth Services Network CO99- $119,000 Sharp HealthCare Foundation CO99- $25,000 Meals on Wheels Greater San Dieoo CO99- $14,000 SI. Charles Nutrition Center CO99- $4,500 Lutheran Social Services - Shared Housina CO99- $4,000 Adult Protective Services CO99- $12,000 Lutheran Social Services - Project Hand CO99- $12,000 Chura Vista Family Violence & Prevention Coalition CO99, $34,840 Thursdav's Meal CO99- $8,000 Chula VIsta Police Deoartment - Crime Free Multl-Housina CO99- $9,679 Chula Vista Therapeutic Prooram CO99- $26,174 Chula Vista Literacy Team CO99- $12,000 Olav Recreation Center CO99- $47,826 Communitv Protect Cateaorv Lutheran Social Services, Carino Nelohbor Prooram CO99- $24,000 South Bay Community Services - Graffiti Eradication Proaram CO99- $30,000 Chula Vista Community Preservation Proqram CO99- $60,000 South Bav Community Services - Community Develooment CO99- $65,000 Economic Development Category Southwestern Colleae CO99- $16,000 South Bav Community Services - Teen Club CO99, $26,500 Chicano Federation CO99- $5,000 Community Development, Business Outreach Specialist CO99- $55,000 Non-Profit CaDitallmprovement Proaram Cateaorv Bovs and Girls Club of Chula Vista C099, $52,500 South Bav Family YMCA CO99- $25,000 Administration Category South Bav Familv YMCA-Human Services Council CO99- $28,000 Reoional Task Force on the Homeless CO99- $1,000 library/Recreation - Information & Referral Soecialist CO99- $9,912 Fair Housino Council CO99- $38,000 Total $770,331 7-~ ,--,""_._-- .._--",--,-,-"--,._--- -"",""-- . Section 2. The City Council does hereby appropriate the remaining funds for the following programs and projects: Programs/Projects Appropriation CitY CaDitallmDrovement Proaram Drainaqe Improvements - Tobias and Glenhaven Wav $194,000 Restroom Construction, Otav Los Nlnos, and Grea Rooers Park $119,000 Connolev Park $176,895 Feaster,Edison Charter School $151,000 PlaYGround Equipment Renovation $60,000 Parkway Street Liqhtinq $57,500 Oranoe Avenue Street Liqhtlno $199,000 ADA Curb Cuts $50,000 Otay Recreation Center Section 108 Loan Repavment $48,696 Emerson Street improvement $52,250 Administration/Planning Cateaorv City Staff Administration $270,257 Resurfacina Paal Decks Loma Verde Poal - Phase I $15,400 Street Improvements - Banner $30,000 Street Improvements - Dixan Drive $17,500 Total $1,441.498 Section 3. The City Council does hereby direct and authorize the Mayor of the City of Chula Vista to execute said contracts for and on behalf of the City of Chula Vista. Section 4. This resolution shall take and be in full force and effect immediately upon the passage and adoption thereof. Presented by Presented by (l~. Chris Salomone Director of Community Development H:\HOME\COMMDEVIRESOSICDBG Agmts g9,OO.doc 9--7 °- ~HIBIT 1 'I ! / IUD ¡"'I""'" ' IJJd,,'" "11 AGREEMENT SETTING OUT TERMS AND OBLIGATIONS OF (J~:~;,¿;~~lI.JlI.JDJ ADULT PROTECTIVE SERVICES, INC. 866l Nflr IN REGARD TO THE EXPENDITURE OF CITY FUNDS APPROPRIATED t THIS AGREEMENT is made this May 19, 1998, for the purposes of reference oríï,)'; and effective as of the date last executed between the parties, between the City of Chu1a Vista ("City") herin, a municipal corporation of the State of California, and Adult Protective Services, Inc, (South Bay Adult Day Health Center), a non-profit organization ("Grantee"), and is made with reference to the following facts: RECIIALS, WHEREAS, the City participates in the Community Development Block Grant (CDBG) Program, a principal goal of which is to fund programs and services which will benefit low and moderate- income Chula Vista households; and, WHEREAS, the City has entered into a separate funding agreement with HUD for the City's annual CDBG entitlement. WHEREAS, the City Council of the City of ChuIa Vista held a public hearing and allocated CDBG entitlement funds on April 7, 1998, a portion of which was allocated for the Grantee; and, WHEREAS, the City is desirous of having those certain services for the benefit of low income households, hereinafter enumerated, perfonned by the Grantee; and, WHEREAS, HUD requires the execution of a written agreement setting the tenus and obligations for the expenditure of CDBG funds by the Grantee; and, WHEREAS, Grantee warrants and represents that they are experienced and staffed in a manner such that they can prepare and deliver the services required of Grantee within the time frames herein provided all in accordance with the tenus and conditions of this Agreement; NOW, THEREFORE, in consideration of the mutual obligations of the parties as herin expressed, the parties hereto agree as follows: 1. Tenn of Agreement, The tenn of this agreement shall be for a period of one (1) year, from July 1,1998 through June 30,1999, 2, Statement of Work Schedule, The Grantee shall perfonn those duties described in the Statement of Work in Exhibit A, attached hereto and incorporated herein, These services shall be provided during the tenn of this agreement and according to the Perfonnance Schedule in Exhibit A, attached hereto and incorporated herein. 3, Low Income Requirement. The services to be perfonned by Grantee shall be provided primarily to persons of low income households, A minimum of 51 % of the persons provided services shall be of low income, as detennined by the most current HUD Income Limits for the San Diego SMSA, a copy of which is attached hereto and incorporated herein (Exhibit C). Grantee shall use reasonable means. to detennine the income level of each person or family served, 9-6' Cð9g-/J¡,j J\ 1<697'0 r- 4, Compensation and Bud¡æt. In consideration for Grantees perfonnance of the work described in Section 2 hereof and on the condition the City receives sufficient CDBG funds and appropriates them for the purposes provided for in this Agreement, the City shall reimburse Adult Protective Services, Inc, up to a maximum of $7,000,00 (Seven Thousand Dollars), payable as set forth in Section 5 below, An itemized budget for said reimbursable expenses is set forth in Exhibit B, attached hereto and incorporated herein by reference and includes itemized budgets for all organizations participating in the collaborative, 5, Reimbursement Payments, Payment of those City appropriated funds shall be made to Grantee in monthly or quarterly installments, in arrears, as detennined by the Grantee as set forth in Exhibit B, following receipt of the "CDBG Expense Reimbursement Claim Form" from the Grantee, Expenses itemized on the "Expense Reimbursement Claim Form" shall be limited to actual expenses incurred during the period specified on said form, and shall not include any anticipated costs, Grantee shall attach xeroxed copies of all source documentation, such as receipts, bills, time sheets, etc. as shall provide reasonable proof of actual expenses incurred. Reimbursement.CIaim Forms will not be processed unless accompanied by the required documentation, Spreadsheet formats are not acceptable. The Grantee understands and accepts that in the event that HUD should withdraw the City's CDBG and HOME funding, the City is not obligated to compensate said Grantee for its expenditures, 6, ~, The Grantee shall provide the City with a quarterly report, submitted no later than 40 days after the last day of the previous quarter, which includes a narrative of the services provided and an itemized accounting of the expenditures of CDBG funds during the previous quarter. Failure to submit quarterly reports in a timely manner will result in withholding of CDBG funds until the report has been submitted. In addition, said report shall include the following statistical data for persons/househoIds served during the previous quarter: (a) the total number of persons/households served; (b) the number of persons/households receiving each type of service provided; (c) of the personslhouseholds served, the number of residents and non- residents of Chula Vista; (d) annual gross household income by standard categories, adjusted for family size (low. moderate, other); (e) race or ethnicity according to standard categories (Black, Hispanic, Asian/Pacific Islander, Native American, White); (f) nulllber of female-headed households served; (g) narrative of contract objectives (in Agreement) comparing current objectives vs, original objectives in Agreement. Provide explanation if not meeting original objectives, 7, Assignment. Because of its unique qualifications, City is looking solely to Adult Protective Services, Inc, to perform the work designated in this Agreement. The performance of this Agreement may not, by sub-agreement, be assigned to any other entity without prior written consent of the City, 2 7~r 8. Financial Records and Audits. The Grantee shall maintain all fmanciaJ records for three years following the tenn of this Agreement. The City, at its discretion may require the Grantee to provide or allow the City to undertake a complete fmanciaI and program audit of its records, Those records shall contain, at a minimum, the following information for each client served: income, residency, and ethnicity, The records shall also contain receipts or other proof of aJl expenditures made with City CDBG funds. 9, Representatives, The Community Development Director, or hislher designated representative, shall represent the City in all matters of this Agreement. The City, at its discretion may require the Grantee to provide or allow the City to undertake a complete financial and program audit of its records, Those records shall contain, at a minimum, the following infonnation for each client served: incollle, residency, and ethnicity, The records shall also contain receipts or other proof of all expenditures made with City CDBG funds, 10, Unifonn Administrative Requirements, The Grantee shall comply with the applicable unifonn administrative requirements as described in HUD regulation 24CFR 570,502, This HUD regulation requires compliance with certain sections of 24 CFR part 85 "Unifonn Administrative Requirements for Grants and Cooperative Agreements to State and Local Govermnents". 11. Other Program Requirement~, The Grantee shall carry out each activity specified under this Agreement with all Federal laws and regulations described in 24 CFR 570, Subpart K, with the following exceptions: a) The Grantee does not assume environmental responsibilities described at 24 CFR 570,604; b) The Grantee does not assume responsibility for initiating the review process under the provisions of 24 CFR 570,612, 12, Accounting Procedure, The Grantee agrees to abide by the requirements of OMB Circular A-I22 "Cost Principles for Non-Profit Organizations", The Grantee shall account for use of Block Grant funds separately from other funds so as to demonstrate that the funds are used for their designated purposes, 13, Prot¡:ram Income, Any program income derived from CDBG funds shall be reported to the City and shall only be used by grantee for the services funded under this Agreement. All provisions of this Agreement shall apply to the use of program income for said activities, Said program income shall be substantially disbursed for said services before the City will make additional reimbursements to the Grantee, If said program income is on hand when this agreement expires, or is received after expiration of this agreement, then said program income shall be paid to the City, 14, Conditions for Religious Ort¡:anizations, If the Grantee is a religious entity, affiliated with a religious entity, or sponsor of religious activities, then Grantee shall abide by the HUD regulations 24 CFR 570,200G) which prohibits discrimination on the basis of religion and prohibits the use of funds for religious activities, and places other restrictions and limitations on the Grantee, 15, Drug-free Work:place, The Grantee shall maintain a drug-free workplace at all times for the duration of this contract. 16. Lobbyin!! of Federal Officials, The Grantee shaJl not use any funds provided under this Agreement to pay any person for influencing or attempting to influence an officer or employee of any Federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. If Grantee utilizes any other funds for any of the aforementioned purposes, then the Grantee shall complete and submit Standard Form-LLL, "Disclosure Fonn to Report Lobbying", in accordance with its instructions, 3 9-/?J 17, Insurance, Grantee represents that it, and its agents, and staff employed by it are protected by worker's compensation insurance and has coverage under public liability and property damage insurance policies which this Agreement requires to be demonstrated in the form of a certificate of insurance, Grantee will provide, prior to commencement of the services required under this Agreement the following certificates of insurance to the City: a) Statutory Worker's Compensation coverage plus $1,000,000 Employers liability coverage; b) General and Automobile Liability coverage to $1,000,000 combined single limit which names the City as additional insured, and which is primary to any policy which the City may otherwise carry ("primary coverage"), and which treats the employees of the City in the same manner as members of the general public ("cross-liability coverage"), ,The insurance shall be issued by an admitted carrier with a Best's rating of A-V or better, except as otherwise approved by the City it its sole discretion, 18, Hold Hannless, Grantee shall defend, indemnify and hold harmless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limited attorney's fees) arising out of the conduct of the Grantee, or any agency or employee, or others in connections with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees, Grantee indemnification shall include any and all costs, expenses, attorney's fees and liability incurred by the City, its officers and agents, or employees in defending against such claims, whether the same proceed to judgement or not. Further, Grantee at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officer, agents, or employees. Grantee's indemnification of City shall not be limited by any prior or subsequent declaration by the Grantee, 19, Sm¡pension and Termination, In accordance with HUD regulation 24 CFR 85.43, Grantee may be suspended or terminated by the City after 30 days written notice to the Grantee due to default by the Grantee or Grantee's inability to perform, regardless of whether such inability is due to circumstances within or beyond the Grantee's control. The award may be terminated for convenience in accordance with 24 CFR 85,44, Settlement of any disputes shall be based on the laws of the State of California. 20, Agreement Modification, This Agreement may not be modified orally or in any manner other than by an agreement in writing signed by the parties hereto, 21. Breach of Contract. The parties reserve the right to pursue any remedy provided under California law for remedy in instances where contractors violate or breach contract terms, 22, Reversion of Assets, Upon expiration of this Agreement, Grantee shall transfer to the City any CDBG funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG funds, including any program income derived from CDBG funds, 23. Entire A¡¡-reement. This Agreement represents the entire agreement between the parties and supersedes any previous or contemporaneous written or oral agreements, Next page for signature page. 4 9//j ~AdUlt EXHmlT A Protective Services, Inc. A pr;vate, non-proUt agency prov;d;ng serv;ces to sen;ors;n San o;ego County. 2840 Adams Avenue, Suite 103, San Diego California 92116-1404 . (619) 283-5731 Statement of work and Perlormance Schedule The Community Development Block Grant funds will be used to provide disabled elderly Chula Vista residents transportation to and from the South Bay Adult Day Health Care Center. Adult Protective Services, Inc., will furnish the Community Development Department of Chula Vista with quarterly reports on the characteristics of the persons served - number, gender, ethnicity and whether oflow or lower income as defined for the San Diego Metropolitan Area. 100% will be disabled, over 60, residents of Chula Vista and within the HUD income guidelines. The program services 85 persons at anyone time whom are eligible for this assistance. However, the reports will be made on actual numbers of people served by the CDBG Grant funds. The $7,000 will be used to purchase approximately 233 trips per month from Handy Trans. It is the objective of this program to restore as many disabled elderly as possible to an increased level of self,care so as to avoid both nursing home placement and the breakdown of home caregivers. f~/J OVER TWENTY-FIVE YEARS OF EXCELLENCE EXHIBIT B SOUTH BAY ADULT DAY HEALTH CARE CENTER BUDGET 98-99 BUDGET 98-99 REVENUES MEDICAL 724000 SHARE OF COST 6000 VETERAN ADMINISTRATION 46000 PARTICIPANT FEES 4825 NUTRITION - DEPT. OF EDUCATION 23460 CITY OF CHULA VISTA (CDBG) 7000 INTEREST & DIVIDENDS 100 TOTAL REVENUES 811385 EXPENSES WAGES & SALARIES 450000 FRINGES 110000 CONSULTANTS 50323 AUDITING 910 EQUIPMENT, MAINTENANCE & REPAIR 2825 PAYROLL SERVICES 3675 RENT, MAINTENANCE & JANITOR 32400 UTILITIES 5000 TELEPHONE 4000 INSURANCES 14000 OFFICE SUPPLIES AND MINOR EQUIPMENT 15000 OTHER SUPPLIES 7000 POSTAGE 2000 MILEAGE 5500 TRANSPORTATION 38500 TRAINING 540 PRINTING 985 SUBSCRIPTIONS 980 BANK SERVICE CHARGES 100 EMPL YEES' ADS 500 DEPRECIATION 1000 PHYSICAL EXAMS 150 FOOD COSTS 55862 CONFERENCE, MEETINGS 200 ORGANIZATION DUES 700 OTHER COSTS 9235 TOTAL EXPENSES: 811385 QUARTERLY BILLING IS REQUESTED INSTEAD OF MONTHLY, 9-11 zgg gg gg gg gg gg gg gg gg gg gg o~oo oo~ voo ~~ ~ID ~OO m~ IDoo ~~ m~ N~ U ~~~ ~~ ~m g~ ~~ g* ~~ ~m ~~ ~~ ~~ H W H a. 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The foliowing formation must be disclosed, 1. List the names of ali persons having a financial interest in the contract, i.e. contractor, subcontractor, material supplier. ADULT PROTECTIVE SERVICES, INC. CITY OF CHULA VISTA 2, If any person identified pursuant to (1) above is a corporation or partnership, list the names of ali individuals owning more than 10% of the shares in the corporation or owning any partnership interest in the partnership. NONE 3, If any person identified pursuant to (1) above is non-profit organization or a trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. SEE ATTACHED LIST 4, Have you had more than $250 worth of business transacted with any member of the City staff, Boards, Commissions, Committees and Council within the past twelve months? YES- NO.lL If YES, please indicate person(s): 5, Please identify each and every person, including any agents, employees, consultants or independent contractors who you have assigned to represent you before the City in this matter. MALACHY J. MURPHY NANCY HITCHCOCK 6, Have you and/or your officers or agents, in the aggregate, contributed more than $1,000 to a Council member in the current or preceding election period? YES- NO~ If yes, state which Councilmember(s): Person is defined as: 'Any individual, finn, co-partnership, joint venture, Bssociation, social club, fra/BmBlorganization, corporation, estBte, trust, receive~ syndicate, this and any othar county, city and counlIy, city, municipality, district or othar polffical subdivision, or any other group or combination acting BS a unit. " (NOTE: Attach additional pages as necessary) Date: 6/24/98 MALACHY J. MURPHY Print or type name of contractor/applicant MIHOME\CQMMQEVlMASTERSIDISCLQSETXT (Augu,t 22. 1996) 7---/¡j; MT"-'pERS OF THE BOARD OF DIRECTORS""', 0'.. ADULT PROTECTIVE SERVICES, INc.' I 2840 ADAMS A VENUE, STE. 103 SAN DIEGO, CA 92116 (619) 283-5731 Lloyd Plummer, President Billy Frank 9141 Golondrina Drive 8775 Aero Drive, Ste,#238 LaMesa,CA91941 San Diego, CA 92123-1756 462-9141 565-1392 Dorothy Yonemitsu, Vice President Evelyn Herrmann 2431 Alto Cerro Circle 3863 Aragon Drive San Diego, CA 92109 San Diego, CA 92115 273-3576 582-0528 Marie Hood, 20d Vice President Susan La Flam, Assistant Secretary 2834 Adams Avenue San Diego Gas & Electric Company San Diego, CA 92116 8326 Century Park Ct. Rm, 204 281-8035 San Diego, CA 92123-1576 654-171O(Work) Faustina Solis 8428 Encino Avenue Ann O'Neill San Diego, CA 92123 539 Telegraph Canyon Road #561 278-3722 Chula Vista, CA 91910 699-682 I (Work) Muriel E, Baze, Secretary PO Box541 Arthur Price, ADM Rancho Santa Fe, CA 92067 900 Alameda Avenue 756-3443 Coronado, CA 92118 435-2358 Thomas Shumaker, Treasurer 904 Rosecrans Anita Harbert San Diego, CA 92106 San Diego State University/School of Social Work 223-8825 5500 Campanile Drive San Diego, CA 92182-4119 594-6310 Charles Bell, Ph.D. 4561 Bancroft St. Hedy Stelzer San Diego, CA 92116 1873 Loyola Ct. 284-1980 (Home) Chula Vista, CA 91913 421-8206 M. L. Dickson, Assistant Secretary 3141 Courser Ave. Seth Torres San Diego, CA 92117 3620 Hyacinth Drive 273-4655 San Diego, CA 92106 222-3741 Loretta Ames 1515 Lucky St. Joyce Rezin Oceanside CA 92054 10747 Viacha Drive 439-8599 San Diego, CA 92124 268-0975 Malachy J, Murphy, Executive Director Medical Advisor 578-2175 (Home) J, T. Jennings, M, D. Ann Day-Bardach, Asst. Administrator 11330-4 Camino Playa Cancun 295-2342 (Home) San Diego, CA 92124 279-3644 APS: 10/97 9~/? Rev: 4/98 COUNCIL AGENDA STATEMENT Item / ¿:7 Meeting Date 6/22/99 ITEM TITLE: Resolution 1ft/'!! . . d fD f . pprovmg a sewer service an 0 er 0 annexatJon agreement with Francisco J. Mares and Mai Tuyet Do at 4017 Palm Drive and authorizing the Mayor to execute same on behalf of the City SUBMITTED BY: Di='oc Of,,"bli~m~ REVIEWED BY: City Manager~v'l/ (4/5ths Vote: Yes - NoX) In accordance with Council Policy 570-02, Francisco Javier Mares and Mai Tuyet Do have executed the required agreement in order to connect their property (in an unincorporated area of the County) to City sewer. The agreement is now ready for execution by the City. RECOMMENDATION: That Council adopt the resolution, BOARDS/COMMISSIONS RECOMMENDATION: Not applicable, DISCUSSION: On December 9, 1993 Mr. Mares and Mrs. Do, owners of the property at 4017 Palm Drive, entered into an sewer connection and annexation agreement with the City. On June 7, 1994 the City terminated this agreement and refunded the associated fees at the request of the same property owners, The reason for abandonment of the sewer connection project at that time was financial hardship. Recently, Mr. Mares has once again requested to connect the property at 4017 Palm Drive to the City sewer system. This property is in the unincorporated area of the County and unable to annex because the annexation would create an island of unincorporated land. Isolation of unincorporated land is not allowed under regulations of the San Diego Local Agency Formation Commission (LAFCO), Council Policy No, 570-02 requires certain conditions to be met in order to connect to City sewer, if the property is outside the City, This policy was amended in 1996 and the requirements for connection are now different than they were when Mr, Mares and Mrs, Do entered into the sewer connection and annexation agreement in 1993. Currently, Council Policy No. 570-02 requires property owners wishing to connect to the City's sewer system who's property is contiguous to but outside the City boundary to enter into an Out of Agency Agreement with LAFCO and a sewer service and irrevocable offer of annexation agreement with the City, Payment of standard sewer connection fees related to the project are also required by this policy. These fees consist of; Administrative Fee ($30.00), Tap Fee ($317,00), Sewer Capacity Fee ($2,220,00), Spring Valley Assessment ($130 per acre @ 1.16 ac. = $150.80) and Front Footage Charge for sewer construction per Ordinance No. 997 ($16 per foot of fTontage @ 115 ft = )ð ,/ Page 2 Item Æ- Meeting Date ~ $1,840.00) totaling $4,557.80. After both agreements have been executed and sewer connection fees have been paid to the City, along with any required fees paid to LAFCO, City crews will implement the sewer connection at 4017 Palm Drive, The sewer service and offer of annexation agreement is now ready for Council approval. Staff recommends that Council adopt the subject resolution, authorizing the Mayor to sign on behalf of the City. FISCAL IMPACT: Due to the construction and maintenance responsibilities falling on the Permittee, there are no direct costs to the City, except for the processing of this agreement. A deposit in the amount of $1 ,500.00 had been collected from the applicant to cover administrative costs, Attachments: Exhibit "A" .. Sewer Service and Offer of Annexation Agreement Exhibit "8" .. Locator plat E""""o", Dcw'm,o' r;(, No. 0790,35-L YO86A H: \H 0 M E\EN GIN EER \A G END A \M ARES. SEW /(J - ~ ,'....,.. ,-~-,-----_...~-,....' RESOLUTION NO. )í9~1~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A SEWER SERVICE AND OFFER OF ANNEXATION AGREEMENT WITH FRANCISCO J, MARES AND MAl TUYET DO AT 4017 PALM DRIVE AND AUTHORIZING THE MAYOR TO EXECUTE SAME ON BEHALF OF THE CITY WHEREAS, in accordance with Council Policy 570-02, Francisco Javier Mares and Mai Tuyet Do have executed the required agreement in order to connect their property (in an unincorporated area of the County) to the city sewer. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chu1a vista does hereby approve a Sewer Service and Offer of Annexation Agreement with Francisco J. Mares and Mai Tuyet Do at 4017 Palm Drive, a copy of which shall be kept on file in the office of the City Clerk, BE IT FURTHER RESOLVED that the Mayor of the city of Chula vista is hereby authorized and directed to execute said Agreement for and on behalf of the City of Chula vista, Presented by Approved as to form by L~lC~~ John p, Lippitt, Director of John Kaheny, City ttorney Public Works H, Ihomelattorneylre,olmare,. agr /0---5 LEGAL DESCRIPTION FOR PROPERTY TO BE SERVED BY CHULA VISTA SEWER That portion of the easterly half of Quarter Section 46 of Rancho de Ia Nacion, in the County of San Diego, State of California, according to Map thereof No. 166, made by Morrill, fIled in the County Recorder's office of said San Diego County, May II, 1869, and more particularly described as follows: Commencing at the most southerly corner of Lot 56 in Block "B" of Bonita Hills, Unit No.1, according to Map thereof No. 2139, filed in the County Recorder's office of San Diego County, November 22, 1928, said corner being also the most easterly corner of land descrjbed under Parcell in the deed to Margaret H, Wilms and Joseph H. Wilms, recorded March 2, 1965, as File No. 36594; thence along the southeasterly line of said Wilms' land, South 32° 54' 00" West, 92,00 feet to the most easterly corner of land described under Parcell in deed to Edward H. Crane, recorded May 2, 1960, as File No. 90452 and the TRUE POINT OF BEGINNING; thence along the boundary of said Crane's land as follows: Continuing South 32° 54' 00" West, 100,00 feet to the most southerly corner of said land; thence North 63001' 00" West, 407.00 feet, more or less, to the westerly boundary of land described under Parcel I in deed to J.M, Burkhart, et ux, recorded April II, 1960, as File No. 74151; thence northerly along said westerly boundary to the most northerly corner of said Crane's land, being a point on a line which bears North 63 ° 01' 00" West from the TRUE POINT OF BEGINNING; thence along the northeasterly line of said Crane's land South 630 01' 00" East, 470.00 feet, more or less to the TRUE POINT OF BEGINNING. EXHIBIT "A" /0-1 -'---'--"--'--'-"---.-'.""""- ,.._-, ,.... ~ ..~'J. ~ D"BY /". EXHIBIT "B' /C~ DATE: ~ Iß/94 COUNCIL AGENDA STATEMENT Item -L) Meeting Date 6/22/99 ITEM TITLE: Resolution /9 if 7'9 Waiving the consultant selection process, approving award of a three-year service contract to ADS Environmental Services, Inc. (ADS) for the maintenance of seven (7) sewage flow meters during fiscal Years 1999-00,2000-01, and 2001-02, and authorizing Mayor to execute said agreement SUBMITTED BY: Director of Public Works Ý REVIEWED BY: City Managerq~J)~ (4/5ths Vote:_Yes-X...No) The City's current three-year service contract with ADS for the repair and preventive maintenance services of sewage flow metering stations will expire on June 30, 1999. Based on evaluation of the proposal from ADS, staff proposes that the City enters into a new three-year contract with ADS. RECOMMENDATION: That Council approve the resolution stated above and award a three- year service contract for an amount of $72,720 to ADS, to maintain and service seven sewage flow meters. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable, DISCUSSION: The City cun-entIy has seven ADS sewage flow meters which are used for billing the City for its share of costs in the Metropolitan Sewerage System (Metro) and the Spring Valley Outfall. The locations and types of sewage flow meters are listed in Appendix A. The City's cun-ent agreement for maintenance of these meters is with ADS for Fiscal Years 1996-97, 1997-98 and 1998-99. The City staff has conducted a survey of nine cities and agencies in the San Diego area and detennined that ADS is the only company in San Diego that is qualified to maintain the ADS flow meters, Special training, parts and equipment are required to perfonn the maintenance, as well as detailed knowledge regarding the ADS computer software. On April 5,1999, staff received a proposal from ADS for the maintenance of these seven flow meters, The proposal included cost estimates for three-year and five-year contracts, After review ofthe proposal, staff recommends waiving the consultant process as impractical and to continue to use ADS for the following reasons: //--) Page 2, Item ~ Meeting Date 6/22/99 1. ADS quoted a fair and reasonable price of $24,240 per year for a three-year contract. 2. Since ADS manufactures the flow meters, they have greater accessibility to spare parts and technological improvements. 3. There are no other companies that can provide the parts to repair the sewage flow meters. 4. Other companies would not be able to provide support and upgrades to the ADS software and must purchase repair parts from ADS to maintain the flow meters. 5. The City's Purchasing Agent had reviewed our selection process and concurred with our recommendation for selecting ADS. An interview was not held because staff is familiar with the quality of work performed by the personnel of ADS firm and because sufficient information was given in the proposal to enable staff to make a decision. Also, ADS is the only firm in the San Diego area that has the qualifications, replacement parts and experience to perform maintenance on ADS sewage flow meters. Staff recommends that a comprehensive three year contract be awarded instead of a five year contract for the following reasons: 1. Staff considers the three year contract price of $24,240 per year to be fair and reasonable. Awarding a three year contract would enable us to "lock in" a favorable price. 2. When the three-year service contract expires, other newly established companies in this field will have the opportunities to submit proposals and compete for the new contract. Subsequently, we may receive better proposals and prices. FISCAL IMPACT: The cost of this contract is $24,240 per year or $72,720 for the three (3) year period, Sufficient funds have been budgeted for Fiscal Year 1999-00 in Account #225-2250-5202 to cover this expense, Attachment June 16,1999 (3:15pm) File No. : 0790-70-KYO73 H :\H OMElEN GlNEER \SEWER99IADSAGREE. BIA G EN DA.JN /1--)- - -'.'---"""""".---------.. RESOLUTION NO. /7719~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE CONSULTANT SELECTION PROCESS, APPROVING AWARD OF A THREE-YEAR SERVICE CONTRACT TO AMERICAN DIGITAL SYSTEMS ENVIRONMENTAL SERVICES, INC, (ADS) FOR THE MAINTENANCE OF SEVEN (7) SEWAGE FLOW METERS FOR FISCAL YEARS 1999-00, 2000-01, 2001-02 AND AUTHORIZING MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the City's current three-year service contract with ADS for the repair and preventive maintenance services of seven (7) sewage flow metering stations will expire on June 30, 1999; and WHEREAS, based on the evaluation of the proposals from ADS, staff proposes that the City waive the Consultant Selection Process and enter into a new three-year contract with ADS for the following reasons: 1. ADS quoted a fair and reasonable price of $24,240 per year for a three-year contract. 2. Since ADS manufactures the flow meters, they have greater accessibility to spare parts and techno- logical improvements, 3, There are no other companies that can provide the parts to repair the sewage flow meters. 4, Other companies would not be able to provide supports and upgrades to the ADS software and must purchase repair parts from ADS to maintain the flow meters, 5. The city's Purchasing Agent had reviewed the selection process and concurred with the recommendation for selecting ADS. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby waive the Consultant Selection Process as impractical and approve the award of a three-year service contract to American Digital Systems Environmental Services, Inc. for the maintenance of seven (7) sewage flow meters for fiscal years 1999-00, 2000-01 and 2001-02. 1 II-} BE IT FURTHER RESOLVED that the Mayor of the City of Chula vista is hereby authorized and directed to execute said agreement for and on behalf of the City of Chula vista. Presented by Approved as to form by iY~df!!2 ¡ G~ John p, Lippitt, Director of John M. Kaheny, CityVAttorney Public Works H. \home\attorney\re,o\ad'. agr 2 /I~i APPENDIX A SCHEDULE OF EQUIPMENT AND LOCATIONS SITE PHONE NUMBER SITE LOCATION EQUIPMENT NUMBER CV-5 East Flower Street, Bldg. 25 3500 monitor, (619) 476-8332 1 ultrasonic depth sensor CV-7 Plaza Bonita Road 3500 monitor, (619) 476-3433 (1) & (2)' 2 ultrasonic depth sensors CV-8 Los Flores Drive, Between lots 30 & 20 3500 monitor, (619) 425-0649 1 ultrasonic depth sensor CV-9 North Fifth Avenue, North of "C" Street 3500 monitor, (619) 476-9793 1 ultrasonic depth sensor velocity sensor CV-10 Acacia Avenue at Bonita Road 3500 monitor, (619) 475-6768 1 ultrasonic death sensor CV-11 Otay Lakes Road and Bonita Road 3500 monitor, (619) 267-8525 1 ultrasonic depth sensor CV-12 Proctor Valley Road 3500 monitor, (619) 479-4017 1 ultrasonic depth sensor velocity sensor NOTE: . DUAL MONITORING SITE H: IHOM EIE NG I N EERISEWERIAPPN DXA. WB3 /' //---;? .. '------...-.-........-,.--.. --,-, Agreement between City of Chula Vista and ADS Environmental Services Inc. for Maintenance of Wastewater Flow Meters This agreement ("Agreement"), dated for the purposes of reference only, and effective as of the date last executed unless another date is otherwise specified in Exhibit A, Paragraph 1, is betWeen the City of Chula Vista, hereinafter called "City", whose business form is set forth on Exhibit A, paragraph 3, and ADS Envirorunental Services, Inc" hereinafter called "Consultant," the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set fonh on Exhibit A, paragraph 5, and whose place of business and telephone numbers are set fonh on Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals Whereas, the City of ChuIa Vista owns seven permanent sewage flow meters used to calculate City's bills for wastewater transportation and treatment from the City San Diego Metropolitan Wastewater Department and the Spring Valley Sanitation District; and 'Whereas, the City's current three-year contract for repair and maintenance services for these flow metering stations will expire on June 30, 1999; and Whereas, ADS Envirorunental Services, Inc, (ADS) is the only firm in the San Diego area that has the qualifications, monitor replacement parts and experience to perform maintenance on ADS flow meters; and Whereas, Consultant is qualified and has the capability to provide technical software support and software upgrades, considering qualifications and costs; and 'Vhereas, Consultant warrants and represents that ADS is experienced and staffed in a manner such that it is and can perform and deliver the services required of Consultant to the City as herein provided all in accordance with the terms and conditions of this Agreement. NOW, THEREFORE, BE IT RESOLVED that the City and Consultant do hereby mutually agree as follows: 1. Consultant's Duties: A. General Duties: Consultant shall perform all of the services described on the attached Exhibit A, Paragraph 7, entitled "General Duties"; and, B. Scope of Work and Schedule: In the process of performing and delivering said "General Duties", Consultant shall also perform all of the services described in Exhibit A, Paragraph SA, entitled "Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set fonh in Exhibit A, Paragraph S, and perform such services and deliver to City such DeJiverables as are identified in Exhibit A, Paragraph SC, H. \H OME,ENGINEER ',SEWER99\ADSAGRELB ,A GRNMT .IN /)/1:, -1- within the time frames set forth therein, 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 herein 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, operate to tenninate this Agreement. C. Reductions in Scope of Work: City may independently, or upon request from Consultant, from time to time reduce the DefIDed Services to be perfonned by the Consultant under this Agreement. Upon doing so, City and Consultant agree that there shall be a corresponding reduction in the compensation as stated in Exhibit A, Paragraph 11 associated with said reduction, D. Additional Services: In addition to performing the DefIDed Services herein set forth, City may require Consultant to perfonn 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 perfonn same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11, uIÙess a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed, E. Standard of Care: Consultant, in performing any Services under this agreement, whether DefIDed Services or Additional Services, shall perfonn in a manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations, F. Insurance: Consultant represents that it and its agents, staff and subconsultants employed by it in connection with the Services required to be rendered, are protected against the risk of loss by the following insurance coverages, in the following categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 9. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 9, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City and Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public ("Cross-liability Coverage"). Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 9, unless Errors and Omissions coverage is included in the General Liability policy, G. Proof of Insurance Coverage: H . \H 0 MEIE N G I NEER '-SEWER 99\ADSA G REE . B \A G RN MT . J N /I-? -2- -..,...---------,---.. -_.. (1) Certificates of Insurance: Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured, (2) Policy Endorsements Required: In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City demonstrating same, which shall be reviewed and approved by the Risk Manager, H. Security for Perfonnance: (1) Perfonnance Bond: In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Perfoanance 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 by a surety and in a foan and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the teall, "Perfoanance Bond"., in said Paragraph 19, Exhibit A, (2) Letter of Credit: In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Letter of Credit (indicated by 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 their unfettered discretion by submiuing to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the teans of this Agreement. The letter of credit shall be issued by a bank, and be in a foan and amount satisfactory to the Risk Manager or City Attorney which amount is indicated in the space adjacent to the teall, "Letter of Credit", in said Paragraph 19, Exhibit A, (3) Other Security: In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide security other than a Perfoanance 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 foan and amount satisfactory to the Risk Manager or City Attorney. I. 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, 2. Duties of the City: A. Consultation and Cooperation: City shall regularly consult the Consultant for the purpose of reviewing the progress of the Defmed Services and Schedule therein contained, and to provide direction and guidance to achieve the objectives of this agreement. The City shall peanit access to its office facilities, files and records by Consultant throughout the term of the H , \H 0 ME\EN G INEER \SEWER 99\ADSA GREE.B \A G RNMT . J N 11--% -3- agreement. In addition thereto, City agrees to provide the infonnation, data, items and materials set forth on Exhibit A, Paragraph 10, and with the further understanding that delay in the provision of these materials beyond 30 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's perfonnance of this agreement. B. Compensation: Upon receipt of a properly prepared billing from Consultant submitted to the City periodically as indicated in Exhibit A, Paragraph 18, but in no event more frequently than monthly, on the day indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services perfonned by Consultant according to the tenDS and conditions set forth in Exhibit A, Paragraph 11. All billings submitted by Consultant shall contain sufficient infonnation as to the propriety of the billing to pennit the City to evaluate that the amount due and payable thereunder is proper, and shall specifically contain the City's account number indicated on Exhibit A, Paragraph 18 (C) to be charged upon making such payment, 3. Administration of Contract: Each party designates the individuals ("Conttact Administtators") indicated on Exhibit A, Paragraph 13, as said party's conttact administtator who is authorized by said party to represent them in the routine administtation of this agreement. 4. Term: This Agreement shall commence on July 1, 1999 and shall tenninate on June 30, 2002, 5. Liquidated Damages: The provisions of this section apply if a Liquidated Damages Rate is provided in Exhibit A, Paragraph 14, 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 perfonnance, The parties have used their judgment to arrive at a reasonable amount to compensate for delay. 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 14 ("Liquidated Damages Rate"), Time extensions for delays beyond the consultant's conttoJ, other than delays caused by the City, shall be requested in writing to the City's Conttact Administrator, or designee, prior to the expiration of the specified time, Extensions of time, when granted, will be based upon the effect of delays to the work and 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. H , IH 0 MEIEN GINEER ,-SEWER 99IAD SA G REE. B IA G RNMT . J N //-7 -4- 6. Financial Interests of Consultant: A. Consultant is Designated as an FPPC Filer: If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC [¡ler", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shaH report economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 15 of Exhibit A, or if none are specified, then as determined by the City Attorney, B. Decline to Participate: Regardless of whether Consultant is designated as an FPPC Filer, Consultant shall not make, or participate in making or in any way attempt to use Consultant's position to influence a governmental decision in which Consultant knows or has reason to know Consultant has a financial interest other than the compensation promised by this Agreement. C. 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. D. 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. E. 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 of City if Consultant learns of an economic interest of Consultant's which may result in a conflict of interest for the purpose of the Fair political Practices Act, and regulations promulgated thereunder. F. Specific Warranties Against Economic Interests: Consultant warrants and represents that 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 15, Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates 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 12 months thereafter. H , IH 0 MEIEN GLNEER \SEWER99\ADSA G REE. B IA G RNMT . IN j/-/rJ -5- ._---~--~'-_._.. Consultant agrees that Consultant Associates shall not acquire any such Prohibited Interest within the Tenn of this Agreement, or for 12 months after the expiration of this Agreement, except with the written pennission of City . Consultant may not conduct or solicit any business for any party to this Agreement, or for any third party which may be in conflict with Consultant's responsibilities under this Agreement, except with the written pennission of City . 7. Hold Hannless: Consultant shall defend, indemnify, protect and hold hannless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Consultant, or any agent or employee, subcontractors, or others in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful misconduct of the City, its officers, or employees. Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees, Consultants' indemnification of City shall not be limited by any prior or subsequent declaration by the Consultant. 8. Termination of Agreement 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 tennination. In that event, all fmished 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 for any work satisfactorily completed on such documents and other materials up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by Consultant's breach, 9. Errors and Omissions: In the event that the City Administrator detennines that the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than wou]d have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City, Nothing herein is intended to limit City's rights under other provisions of this agreement, 10. Termination of Agreement for Convenience of City: H : IH 0 ME\EN G [N EER \SEWER 99\ADSA GREE. B \A G RN MT .1N II ~ II -6- City may tenninate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such tennination and specifying the effective date thereof, at least thirty (30) days before the effective date of such tennination. In that event, all fmished 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 tenninated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation 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 herein, 11. 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 assigrnnent or novation), without prior written consent of City, City hereby consents to the assignment of the portions of the Defmed Services identified in Exhibit A, Paragraph 17 to the subconsultants identified thereat as "Pennitted Subconsultants" , 12. Ownership, Publication, Reproduction and Use of Material: All reports, studies, infonnation, 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 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 unre- stricted 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 re- ports, studies, data, statistics, fonns or other materials or properties produced under this Agreement. 13. Independent Consultant: City is interested OIùY in the results obtained and Consultant shall perfonn as an independent Consultant with sole control of the manner and means of performing the services required under this Agreement. City maintains the right OIùY 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, an independent Consultant and shall not be deemed to be an employee 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 shaH hold the City hannJess with regard thereto, 14. Administrative Claims Requirements and Procedures: H , IH 0 ME\EN GINEER ISEWER 99\ADSA GREE. BIA G RNMT . J N //--/2 -7- ..----,.."..,--.---- No suit or arbitration shall be brought arising out of this agreement, against the City unless a claim has first been presented in writing and filed with the City and acted upon by the City in accordance with the procedures set forth in Chapter 1,34 of the Chula Vista Municipal Code, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. Upon request by City, Consultant shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. 15. Attorney's Fees: Should a dispute arising out of this Agreement result in litigation, it is agreed that the prevailing party shall be entitled to a judgment against the other for an amount equal to reasonable attorney's fees and court costs incurred, The "prevailing party" shall be deemed to be the party who is awarded substantially the relief sought, 16. 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 DefIDed Services, Consultant shall include, or cause the inclusion of, in said 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. 17. Miscellaneous: A. Consultant not authorized to Represent City: Unless specifically authorized in writing by City, Consultant shall have no authority to act as City's agent to bind City to any contractual agreements whatsoever. B. Consultant is Real Estate Broker and/or Salesman: If the box on Exhibit A, Paragraph 16 is marked, the Consultant andlor their principals islare licensed with the State of California or some other state as a licensed real estate broker or salesperson. Otherwise, Consultant represents that neither Consultant, nor their principals are licensed real estate brokers or salespersons. C. 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 herein as the places of business for each of the designated parties. D. Entire Agreement: This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision bereof H, \HOMEŒNGINEER \SEWER99\AGRNMT .IN -8- ¡I-I] 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, E. Capacity of Parties: Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing Law/Venue: This Agreement shall be governed by and construed in accordance with the laws of the State of California, Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible, Venue for this Agreement, and perfonnance hereunder, shall be the City of ChuIa Vista, H, IH 0 MEIEN G INEER ISEWER 99\ADSA G REE. B IA GRNMT . J N )// J( -9- "-----" "-" Signature Page To Agreement between City of Chula Vista and ADS Environmental Services, Inc. for Maintenance of Wastewater Flow Meters IN WITNESS WHEREOF, City and Consultant have executed this Agreement thereby indicating that they have read and understood same, and indicate their full and complete consent to its tenns: Dated: , 1999 City of ChuIa Vista By: Shirley A, Horton, Mayor Attest: Susan Bigelow, City Clerk Approved as to fonn: Glen Googins, Assistant City Attorney Dated: By: Exhibit List to Agreement (X) Exhibit A: (X) Exhibit B: Detailed Scope of Work (X) Exhibit C: Price Schedule (X) Appendix A: Schedule of Equipment and Locations /' H: IH OMEIEN GINEER 'oS EWER 99IADSA G REE. B \A G RNMT . IN )/--- /.Y -10- Exhibit A to Agreement between City of Chula Vista and ADS EnviromnentaI Services, Inc. 1. Effective Date of Agreement: July 1, 1999 2. City-Related Entity: (X) City of ChuIa Vista, a municipal chartered corporation of the State of California () Redevelopment Agency of the City of ChuIa Vista 3. Place of Business for City: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 4. Name of Consultant: ADS Environmental Services, Inc, 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation 6. Place of Business, Telephone and Fax Number of Consultant: 4820 Mercury Street, Suite C San Diego, CA 92111 Voice Phone (619) 571-0045 ext.226 Facsimile (619) 277-9858 7. General Duties: Provide maintenance, repair and diagnostic services for ADS sewage flow meters and appurtenant equipment, and software supports and upgrades, 8. Scope of Work and Schedule: A, Detailed Scope of Work: A-I /J~JI See Exhibit B B, Date for Commencement of Consultant Services: () Same as Effective Date of Agreement (X) Other: July 1, 1999 C. Time Limits for Performance of Services Services shall be performed for the duration of this contract. Response times and frequency of maintenance shall be as discussed in Exhibit B, 9. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's General Liability Insurance: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000, () Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant: None. 11. Compensation: See Exhibit C, Cost Schedule 12. Materials Reimbursement Arrangement: For the cost of out of pocket expenses incurred by Consultant in the performance of services herein required, City shall pay Consultant at the rates or amounts set forth below: (X) None, the compensation includes all costs, () Reports, not to exceed $ () Copies, not to exceed $ () Travel, not to exceed $ () Printing, not to exceed $ () Postage, not to exceed $ () Delivery, not to exceed $ () Long Distance Telephone Charges, not to exceed $ () Other Actual Identifiable Direct Costs $ 13. Contract Administrators: City: City of ChuIa Vista, Department of Public Works Mr. Samir M. NuhaiJy, Senior Civil Engineer 276 Fourth Avenue, A-2 //-/7 Chula Vista, CA 91910 (619) 691-5259 Consultant: ADS Environmental Services Inc, Mr. Jeff Berk, Business Development Manager 4820 Mercury Street, Suite C San Diego, CA 92111 (619) 571-0045 ext.226 14. Liquidated Damages Rate: None 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable, Not an FPPC Filer. () FPPC Filer 16. Real Estate Broker: Not Applicable 17. Permitted Subconsultants: None 18. Bill Processing: A, Consultant's Billing to be submitted for the following period of time. (X) Quarterly B, Day of the Period for submission of Consultant's Billing: (X) 15th Day of the Month C. City's Account Number: 225-2250-5202 D, Payment shall be due within 30 days of receipt of invoice E, Disputed Bills: If there is a dispute regarding any excess billed amounts, City shall pay the amount the City detennines is owed with calculations justifying this amount within 30 days of receipt of the invoice, Any additional amounts shall be paid within 30 days after the dispute is resolved. A-3 //--/6 19. Security for Performance: () Perfonnance Bond: () Letter of Credit: () Other Security: Type: Amount: $ () Retention, If this space is checked, then not withstanding other provisions to the contrary requiring the payment of compensation to the Consultants sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City detennines that the Retention Release Event, listed below, has occurred: () Retention Percentage: - () Retention Amount: $- Retention Release Event: () Completion of all Consultant Services () Other: H: IH OMEIENGINEERISEWER991ADSA GREE. BIEXHBT A,JN A-4 / l' /; Exhibit B Detailed Scope of Work for Maintenance and Repair of Sewage Flow Meters Equipment 1. Products Serviced by Consultant The Consultant shall provide all services under the terms and conditions specified in this Agreement for the equipment listed in Appendix A, 2. Products Serviced by Others Consultant is not responsible for service or repairs for central computer, peripherals and other equipment not provided by consultant. 3. Services Performed by Consultant Consultant shall perform the following on equipment it services: a. Consultant personnel shall perform remote diagnostic check-out of consultant provided equipment using consultant's most CUITent procedures and programs from its facilities in San Diego, California, or other service locations, by use of telephone lines, b, Consultant personnel shall perform repair and maintenance services necessary to keep the equipment operating, These services shall be performed from the consultant's service facility in San Diego, California, or other service locations, The services to be performed under this Agreement include, but are not limited to, the following: 1. General maintenance and sensor cleaning; 2, Repair of electronic failure internal to the equipment; 3, Repair of telephone telemetry system failure internal to the equipment, and repair of any defects in the telephone line from the monitor to the telephone company pedestal; 4, Ultrasonic depth sensor replacement: a depth sensor shall be replaced if, after cleaning, the sensors has less the (3) operating ultrasonic crystals or less than five (5) accurately reporting sensor pairs; 5. Velocity sensor replacement: a velocity sensor shall be replaced upon sensor failure, or if velocity measurements are reported as a constant or incorrect value, indicating a sensor malfunction; 6, Surcharge sensor replacement: a surcharge sensor shall be replaced if it fails; 7, Battery replacement when the + 12V is less than lO,QV, c, Consultant shall designate a field service representative who shall be the primary contact with the City for resolution of field problems. Written notification of any change of this primary contact shall be provided to City by consultant. B-1 / / --- ,2{J d, Consultant shall respond to a notification of malfunction within two (2) working days, and within an additional two (2) working days consultant shall repair or replace equipment with temporary equipment until repair and installation of original equipment can be perfonned, The designated field representative shall notify City of the service scheduled at least 24 hours prior to anyon-site visit. e. Consultant shall provide once per quarter site visits to perfonn a hydraulic calibration, an e]ectrorric calibration, confmnation and hardware checks at each site. £. Consultant shall maintain an adequate supply of pans, sensors, electrorric boards and morritors for use in servicing the City's system, g, Consultant shall provide a Statement of Repair Service Fonn which documents maintenance or diagnostics perfonned by consultant. The fonD used shall be pre-approved by the City. All fOnDS shall be submitted at least on a quarterly basis. h, The field service shall accommodate City's nonnal operating hours of 8:00 a,m, to 5:00 p,m" Monday through Friday. L The Schedule of Equipment listed in Attachment A to this Agreement may be changed by written notice from the City to ADS. This written notice shall be provided thirty days in advance of the effective date of the changes, ADS shall provide written confmnation of these changes to the City, 4. Services Performed by City City agrees that certain activities must be acknowledged prior to consultant having any obligation to perfonn services enumerated in Paragraph three hereof, The City shall: a, Make no changes to the equipment or software that would preclude consultant from being able to interface with the equipment via telephone with City's equipment unless agreed to by consultant in writing, b, Allow consultant to access the system for purposes of running diagnostic tests and perfonning other functions in the course of maintenance testing, The City agrees to have available upon request by consultant any data or monitor information which would assist in the diagnostic procedure. 5. Exclusions The following equipment and services shall be excluded by consultant from this Agreement: a. Communications and electrical line work external to the equipment; B-2 ///02/ b. Changes or alterations in specifications; c, Painting, refinishing or furnishing materials thereof (except as damaged by consultant during service work); d, Installation, moving or removing of equipment unless required as part of the repair process; e, Repairs or loss of data made necessary by accident or negligence of the City, its employees, agents, or contractors; f. Repairs made necessary due to attempts by City to repair or maintain the equipment UIÙess authorized in writing by consultant; g, Service during holidays or service not covered by this Agreement. Holidays are derIDed as the following days: New Year Day, Martin Luther King Day, Presidents Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day and Christmas Day; h, Maintenance and repair of equipment not listed in Appendix A; i. Repairs made necessary due to events beyond consultant's control, such as, but not limited to, construction by others that cuts the telephone line or acts of God (e,g, lighting strikes, etc,), 6. Software For a period of three years from start of this Agreement, software support shall be provided by the consultant. The support includes appropriate software upgrades and hot line telephone access during normal business hours (pacific time) five days per week, Hot line support shall be in the form of a data analyst available at a toll-free telephone number (currently 1-800-533-3237) to assist the trained system operator in analyzing data problems and answering software and system questions. H : \H OMEIEN G INEER ISEWER 99\AD SA G REE, B IEXHBTB.JN B-3 ) 1-- /- J- ..._-,-~-,--_......_, EXHIBIT C PRICE SCHEDULE This price schedule defines the monthly charge for services detailed in a Comprehensive Service Agreement between ADS Environmental Services, Inc. and the City of Chula Vista. Three Year Contract Cost Per Meter Description Quantity Per Month Total Yearly Comprehensive Service Agreement 6 units $285 $20,520 for three (3) year contract 1 unit $310 $3,720 Total Per Year $24,240 Total for three (3) year contract $72,720 Total invoicable Amount Per Quarter $6,060 NOTE: Additional sites may be added to the contract at the maintenance unit price of $285 per month per monitor for a single monitoring site and the unit price of $310 per month per monitor for a dual monitoring site. Quadrascan software upgrades and new releases will be included without charge during the duration of the agreement. Should the City elect to engage ADS for services outside this Agreement, upon mutual agreement, ADS can provide those services on a Time and Materials Basis, Compensation for services performed outside the scope of work of this Agreement shall be agreed on between the City and ADS prior to commencing of work. H: IH OMEIEN G INE E RISEWE RIEX H BT C ,WB 3 C-1 //~2] COUNCIL AGENDA STATEMENT Item / oZ Meeting Date 06/22/99 ITEM TITLE: Resolution / 9~(} Accepting bids and Awarding Contract for the installation of traffic signal system at Albany Avenue and Main Street to T & M Electric, Inc. dba Perry Electric, SUBMITTED BY: Director of Public worÿ ( REVIEWED BY: City Manager ~¡(" (4/Sths Vote: Yes_No-XJ f!,. f¡1" On May 19, 1999, the Director of Public works received sealed bids from three (3) electrical contractors for the installation of traffic signal system at Albany A venue and Main Street. T & M Electric, Inc. dbaPerry Electric, submitted a low bid of $67,1 70,00. Staff has reviewed the low bid and found it reasonable, Staff recommends awarding the purchase contract for said traffic signal system at Albany Avenue and Main Street to T & M Electric, Inc. dba Perry Electric, RECOMMENDATION: That Council approve the resolution accepting bids and awarding contract for installation of new traffic signal at Albany A venue and Main Street to the low bidder, T & M Electric, Inc, dba Perry Electric, BOARDS/COMMISSIONS RECOMMENDATION: Not applicable, DISCUSSION: On May 19, 1999 City staff opened bids from three electrical companies to install new traffic signal systems at Albany A venue and Main Street (CIP Project TF266), The signal installation project was approved and funded in the City's Capital Improvement Program for 1998-1999, The work to be done includes installation of new traffic signal system with EVPE system, installation of new City-Furnished traffic standards, removal and disposal of existing street light, and restoration of existing improvements, Because of the long lead-time required for procurement of traffic signal equipment and testing of traffic signal controllers and cabinets, the City of Chula Vista has purchased and will furnish said equipment for this project instead of the prospective contractor. The average equipment delivery time is about 90 days, while traffic signal construction projects are usually completed within 45 working days or about 60 calendar days, In the past, if the equipment was not tested and available for installation, the City would furnish the contractor a spare controller in the interim until City testing ofthe new controller was complete, However, this practice has the potential to affect staff's ability to complete emergency repairs, Therefore, the equipment is purchased by the City and tested in advance of award of contracts for the installation of new traffic signals /;2-/ Page 2, Item ~ Meeting Date 06/22/99 without delays, The equipment is anticipated to be on the job site in time to meet the contractor's schedule, The bid received were as followed: Contractor Bid Amount 1. T & M Electric, rnc, dba Perry Electric $67,170,00 2. Lekas Electric, rnc, $67,710,00 3, Trasig Corp. $68,015,00 The total project cost is $148,200 which includes the bid amount of $67,170, $29,700 in staff costs for design, inspection and administration, $45,000 for purchase of traffic control cabinet, Emergency Vehicle Pre-emption traffic system and traffic signal standards, and an approximate 5% contingency of$6,330, The low bid amount of$67,170 is 5,75% higher than the engineer's cost estimate of $63,295. The cost estimate was derived using average unit prices from previous projects of similar scope of work and magnitude, The approved crp budget for the project is $148,200 (Exhibit "A"), There is sufficient funding for the project to proceed with construction. Environmental Status The City's Environmental Review Coordinator has reviewed the work involved in this project and determined that the project is exempt for CEQA under both CEQA Guidelines. Section 15061 (b) (3) and Section 15303, Class 3 (new construction or conversion of small structures). Disclosure Statement A copy of the Contractor's disclosure statement is attached as Exhibit "B", Prevaililll! Walle Statement The source of funding for this project is the Traffic Signal Fund and Gas Tax. Contractors bidding this project were not required to bid based on paying prevailing wages to persons employed by them for the work under this contract. No special minority or woman owned business requirements were necessary as part of the bid documents, Disadvantaged businesses were encouraged to bid through the sending of the Notice to Contractors to various minority trade publications, Form of A!!reement The contract will be let on the City's standard Public Works Contract form. The City Attorney will approve the final form, /;2.--/ Page 3, Item J ;)- Meeting Date 06/22/99 FISCAL IMP ACT: FUNDS REOUIRED FOR CONSTRUCTION A. Contract Amount $67,170.00 B. City-Purchased Equipment $ 45,000,00 (Controller, Standards and EVPE System) C. Design, Inspection, and Administration $29,700,00 (Approximately 25%) D. Contingencies $6,330.00 (Approximately 5% of items A, B, and C) TOTAL $148,200.00 FUNDS A V AILABLE FOR CONSTRUCTION Traffic Signal Fund $25,000,00 Gas Tax $123,200.00 TOTAL $148,200,00 Total funds required for design, inspection and administration include $9,700 in previously expended staff time for design, There is an additional annual energy and maintenance cost of $3,500 associated with this project over what are currently being paid, Attachments: Exhibit A-CIP DETAIL SHEET Exhibit B- CONTRACTORS DISCLOSURE STATEMENT H:IHOMEIENGINEERIAGENDA I TF266.MA /;¿~.J RESOLUTION NO, /'1~¿}{) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING CONTRACT FOR THE INSTALLATION OF TRAFFIC SIGNAL SYSTEM AT ALBANY AVENUE AND MAIN STREET TO T & M ELECTRIC, INC, dba PERRY ELECTRIC WHEREAS, on May 19, 1999, the Director of Public Works received the following three sealed bids for the installation of traffic signal system at Albany Avenue and Main Street: Contractor Bid Amount 1. T & M Electric, Inc. dba Perry $67,170,00 Electric 2. Lekas Electric, Inc, $67,710,00 3, Trasig Corp. $68,015,00 WHEREAS, the total project cost is $148,200 which includes the bid amount of $67,170, $29,700 in staff costs for design, inspection and administration, $45,000 for purchase of traffic control cabinet, Emergency Vehicle Pre-emption traffic system and traffic signal standards, and an approximate 5% contingency of $6,330; and WHEREAS, the low bid amount of $67,170 is 5,75% higher than the engineer's cost estimate of $63,295; and WHEREAS, staff has reviewed the low bid and found it reasonable and recommends awarding the purchase contract for said traffic signal system at Albany Avenue and Main Street to T & M Electric, Inc, dba Perry Electric; and WHEREAS, the City's Environmental Review Coordinator has reviewed the work involved in this project and determined that the project is exempt for CEQA under both CEQA Guidelines - section 15061 (b) (3) and Section 15303, Class 3 (new construction or conversion of small structures); and WHEREAS, the source of funding for this project is the Traffic Signal Fund and Gas Tax and contractors bidding this project were not required to bid based on paying prevailing wages to persons employed by them for the work under this contract; and WHEREAS, no special minority or woman owned business requirements were necessary as part of the bid documents, however, disadvantaged businesses were encouraged to bid through the sending of the Notice to Contractors to various minority trade publications, / ;¿ ---1/ NOW, THEREFORE, BE IT RESOLVED the city Council of the City of Chula vista does hereby accept bids and award the contract for the installation of traffic signal system at Albany Avenue and Main Street to T & M Electric, Inc, dba Perry Electric in the amount of $67,170.00, BE IT FURTHER RESOLVED that the Mayor of the City of Chula vista is hereby authorized and directed to executed said contract on behalf of the city of Chula Vista. Presented by Approved as to form by John p, Lippitt, Director of Attorney Public Works H, \home \at torney\reso \albany. bid 2 ,/' )2/~ " 0 ~ 0<'" ~ I õ; ~g.õ;¡:J: GJ;;j:!! «_=-n n:::!!:! = ~-"'o "..z 0 0...." ~ ~.ê"~ii'::!' ~::1~ ~ ~~z ~ m 15 5' ~ê: g: S; ê\ !:! ~ ~ p I ~ co .. qg::! '<? ¿¡ it' ¡;> :? :;; 4' :::! =1 ó >< C <1>.. GJ", oo~"ro;: -< - ~i?ê-.z:i!iO ~!<.<õc.-g~ ." '.... ~!i'.g~* r~ !!!.~"!:!!!.~ t¡; ..... m'§ 0'" = ~n 5:0 .g~.. z I ~ - ¡;:§g¡'§'~ a~ ~.o ~.:!J ~ > .... ~ c. ro!!è §, ![" ~ ~ . VItI .. 0 ~ '" '< ¡¡¡~... i - ",g"ù';j¡l!: g.à """... I . -I :::> '" XJ- - " 0 -.." ~ ~ 2' i;;~ ~ ~i~ ; ~ ~~ ! gi~ , ...... :::>:::> ~ :!! ~1i1 ", cå 5 ! ~ !i 1i1¡¡, I '< '" ! ñ z $.... § ~ õ~. ~ š-g c..Q =r:::> GJ » g~ §;ò ò g I -. 9, '<...... " a ~ en »» '< ~s. ~~¡;; ¡;; ~ :::>'" -. 0 -< Q. ~ I to -g ð. 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'" I 0 0 ~--"--'--'-'-'-'--"-"'-'- ~ed to flie a Statement of Disclosure of cenam ownersillp or tÌllanclaJ imerests, paymems, or campaign comributions, on ~rs willch will require discretionary action on the pan of the City CouncIl, Planning Commission, and all other official bodies. jf~IJowing information musr be disclosed' / List the names of all persons 'laving a fmancial interest in the property which is the subject of the application or the Contract, , e.g., owner, applicant, Contractor, subcontractOr, material supplier. T i- "" =L-.E.c...-ç'R-lc:..¡ \ ~<=., db1.. ~'( ~l£<::t£.lc:... 2, If any person' identified pursuant to (I) above is a corporation or partnership, list the names of all individuals owning more than 10% of the shares in the corporation or owning any partnership interest in the partnership. -....00 ~'1 \oW ~~\' f'~1 3. If any person' identifie<l pursuant to (I) above is non-profit organization or a trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustor of the trust. "'O~6 4. Have you had more than $250 wont of business transacted with any member of the City staff, Boards, Commissions, Committees, and Council within the past tWelve month? Yes - No VIf yes, please indicate person(s): 5. Please identify each and every person, including any agents, employees. consultants, or independent Contractors who you have assigned to represent you before the City in this maner. No.:.E 6. Have you and/or your officers or agents, in the aggregate, contributed more than $1,000 to a Council member in the current or preceding election period? Yes - No ~ If yes, state which Council members(s): Dare: """'" 1"9~ l<;l'9<9- \.\u&;-er ~~1 /~~'T~"'=R.. Print or type name of ContractOr! Applicant . I3= is defined as: "Any individual, firm, co-parmership, joint \'entUre, associarion, social club, fraJernal organiZaJion, corporaJion, estale, trust, receiver, syndicale. this and an\' other counlY. cir: ar countr\,. cir.. municipality. distncr. or other political subdivision. or any other group or combmatlOn actmg as a an[. 18 ),2-7 EXHIBIT B ':;';"",-,._' '-"""--'-'---------' ---..,-.....,..... COUNCIL AGENDA STATEMENT Item /3 - Meeting Date 6/22/99 ITEM TITLE: Public Hearing to consider the modification of the existing Transportation Development Impact Fee ~ SUBMITTED BY: Director of Public Works REVIEWED BY: City Manager Gf!-- (4/5ths Vote: Yes_NoX) It is recommended that this public hearing be continued to the July 27, 1999. H ,IHOMEIENGINEERIAGENDA I TDIF. LOT FILE NO.' HYO91 /3// COUNCIL AGENDA STATEMENT Item~1 Meeting Date 6/22/99 ITEM TITLE: Public Hearing to consider testimony of the FY 1999/2000 levy of assessments for City Open Space Districts 1-9, 11, 15, 17, 18, 20, 23, 24, 26, 31, 33, and EastIake Maintenance District No.1. SUBMITTED BY: Director of Public Works ~ REVIEWED BY: City Manager 6'¡V (4/5ths Vote: Yes_No.xJ {,JDF- The City administers 25 open space districts established over the last twenty-five years. The districts provide the mechanism to finance the maintenance of common open space areas (canyons, trails, medians, etc,) associated with and benefitting that particular developlllent. As part of this process, a levy of an annual assessment is necessary to enable the City to collect funds for the proposed open space lIIaintenance, Tonight's action continues the process for Fiscal Year 1999/2000. On May 18, 1999, Council approved the open space reports on assessments for all existing Open Space districts and set a public hearing for tonight to take testimony on the proposed assessments. A second public hearing is scheduled for July 13, 1999. RECOMMENDATION: That Council: I) Open the hearing, take testimony, close the hearing. 2) Direct staff to return on July 13, 1999 for the second scheduled public hearing. BOARDS/COMMISSIONS RECOMMENDATION: NIA DISCUSSION: This agenda statement is the yearly resolution of intention to assess property owners for open space maintenance within the City. Table 1 contains the name and location of the districts. Table 2 relates the present year's assessment to the proposed assessment and collectible for FY 1999/2000. Following Table 2, there is some general information that applies to all the districts and then each district is analyzed individually, That is followed by a description of the noticing that is required. Council should be advised that the following two agenda items contain the same information on Open Space District No. 10 and Open Space District No. 14 which were separated due to conflict of interest concerns. The Bay Boulevard and Town Center Open Space Districts were separated due to Proposition 218 issues because these districts were not formed as the result of a 100% petition from the landowners, It was recomlllended by the City's Bond Counsel, Warren Diven, to mail ballots and conduct a public hearing with the property owners in those two districts in order to validate the formation of the districts. Staff will discuss and resolve these issues in separate agenda statements. BackQround Pursuant to Article 4, Chapter 1, Part 2 of the Division 15 of the California Streets and Highways Code, also known as "Landscaping and Lighting Act of 1972" and the City of Chula Vista Municipal Code, Chapter 17.07 -Open Space Districts, the City Engineer has prepared and filed the annual reports for all existing Open Space Districts in the City. The name and location of each open space district is shown in the following table. / 1---j Page 2, ItemA Meeting Date 6/22/99 TABLE 1 Open Space Districts Within the City of Chnla Vista Open Space District Name Location No. I EI Rancho del Rey Units 1-4 Between East H Street and Telegraph Canyon Road east of Paseo Ranchero 2 Lark Haven South and east of Lorna Verde Park 3 Rancho Robinhood Units I & 2 South of Allen School Lane 4 Bonita Ridge Camino Elevado 5 Southbav Villas Northern end of Crest Drive 6 Hilltop Vista Camino Vista Road 7 Zenith Units 2, 3, and 4 North and south of Palomar, east of I-80S 8 Rancho Robinhood Unit 3 Surrev Drive 9 EI Rancho del Rev Units Paseo del Rev, north of Telegraph Canvon Road 11 Hidden Vista Village East H Street, east of 1-805 IS Bonita Haciendas Canvon Drive, east of Otay Lakes Road 17 Bel Air Ridge Northeast of Paseo Ladera and East J Street 18 Rancho del Sur Easterlv end of East Naples Street 20 Rancho del Rey North of East H Street, west of Otay Lakes Road 23 Otay Rio Business Park West of Heritage/Otay Valley Road, south of Otay Rio Road 24 Canvon View Homes Rutgers Avenue, south of East H Street 26 Park Bonita West of the intersection of E Street and Bonita Road 31 Telegraph Canyon Estates North of Otav Lakes Rd, west of "SR 125" 33 Broadway Business Home Village West side of Broadway between J Street and K Street ELMO #1 Eastlake Maintenance District Along East H Street and Otay Lakes Road, adjacent to SRI25 These reports were prepared by the City Engineer or under his direction and are presented to Council for approval in order to proceed with the public hearings set for June 22, 1999 at 6:00 p.m, and July 13, 1999 at 6:00 p.m, in accordance with the Landscaping and Lighting Act of 1972. The reports cover districts listed in Table 1. Staff proposes for FY 1999/2000 that the assesslllent be kept within that amount previously approved, increasing the FY 1998/1999 assessment by an inflation factor. In all cases, staff has set each collectible lower than the proposed assessment for each district. Per the City's Municipal Code, the inflation factor is the lesser of the /tf-2 Page 3, Item-.1i Meeting Date 6/22/99 January to January San Diego Metropolitan Area All Urban Consumer Price Index (CPI) or the change in the estimated California fourth quarter per capita personal income as contained in the Governor's budget published in January, The cpr is estimated at 3.6% based on the San Diego Metropolitan Area and 4.97% based on the change in the estimated California fourth quarter per capita personal income, Therefore, staff will use the estimated cpr figure of 3,6% based on the San Diego Metropolitan Area, which is the lesser of the two figures. Assessment increases equal to 3.6% (CPI) are not subject to majority protest. Only assessment increases !!!IT the cpr are subject to majority protest. All of the districts were formed as the result of a 100% petition by the land owners and are exempt from the provisions of Proposition 218. Assessments & Collectibles Ordinance 2631 also made the distinction between the assessment and the amount that the City may collect against the assessment (collectible). The assessments for FY 1999/2000 are proposed at FY 1998/1999 amounts increased by the inflation factor (CP!) pursuant to Municipal Code Section 17.07.035. The collectibles, on the other hand, are equal to or less than the proposed assessments based on the budget, reserve requirement, savings and fund balances, including interest earnings and prior years' savings. Under staff's recommendation, none of the open space districts are subject to a majority protest on the increase, The proposed assessments and collectibles for Fiscal Year 1999-2000 are as follows: TABLE 2 PRIOR FY'S VS. FY 199912000 ASSESSMENT/COLLECTIBLE OSD FY 99/00 Proposed Proposed FY 97/98 FY98t99 FY98/99 CAP: FY 99/00 FY 99/00 FY 99/00 Assmutl Collectionl Assmutl FY98/99 Assmutl Collectionl Revenue EDU EDU EDU Assmt + EDU EDU CP1(2) 1 $89.61 $40,00 $90,60 $93.86 $93.86 $40.00 $26,472 2 41.58 33,00 42.04 43.55 43.55 33,00 8,217 3 284,61 287.00 287,74 298,10 298,10 286.00 36,322 4 300,61 223.00 303.92 314,86 314.86 223.00 46,830 5 293,15 176.00 296.37 307.04 307,04 175,00 21,350 6 144.97 76.00 146.56 151.84 151.84 76.00 12,312 7 101.27 88.00 102.38 106.07 106.07 88.00 9,152 8 462.63 366,00 467,72 484.56 484.56 363.00 39,930 9 13 1.11 132,00 132,55 137.32 137.32 132.00 50,688 II 89.54 53,00 90.52 93.78 93.78 53,00 70,015 15 276,13 214.00 279.17 289,22 289,22 213.00 12,141 17 132,18 62,00 133.63 138.44 138.44 42.00 1,932 18 312.33 222.00 315.77 327.13 327,13 221.00 96,135 20 308,9Sl 913,464 Zone 1 DB 48.27 0.00 48.80 50,56 50,56 0.00 (3) Zone 2 RC 3,67 3.71 3.71 3.84 3,84 3.84 (3) Zone3H 5.22 2.80 5.28 5.47 5.47 4.38 (J) Zone 4 BC 19.45 19,66 19,66 20.37 20.37 20.37 (3) Zone 5 I 293,30 281.98 296.53 307.20 307,20 307,20 (3) Zone 6 II 225.36 163.80 227.84 236,04 236,04 163.23 (3) Zone 7 III 139.11 140,55 140.64 145,70 145.70 145,70 (3) / c¡/ J Page 4, Item-.1.1... Meeting Date 6/22/99 aSD FY 99/00 Proposed Proposed FY 97/98 FY98/99 FY98/99 CAP: FY 99/00 FY 99/00 FY 99/00 Assmnt/ Collection/ Assmnt/ FY98/99 Assmnt/ Collection/ Revenue EDU EDU EDU Assmt + EDU EDU CP1(" Zone 8 NDB 32.07 0.00 32.42 33.59 33,59 0.00 (3) Zone 9 TCC 25.47 13,26 25,75 26.65 26.65 13.23 (3) 23 357.10 112,00 361.03 374.03 374,03 85.00 7,579 24 535.12 375.00 541.01 560.48 560.48 447.00 17,880 26 419.99 229,00 424.61 439.90 439,90 228,00 4,332 31 433,85 108.00 438.62 454.41 454.41 1.00 345 33 1072.22 0,00 1084.01 1123,04 1123.04 0,00 0 ELMD #1(4) - - - $208,757 Zone AELI 9.93 8.48 10.04 10.40 10.40 9,07 (5) Zone B ELG 16.24 11.53 16.42 17.01 17.01 12.13 (5) Zone C aTC 134,52 7,83 136.00 140.90 140,90 6,12 (5) Zone D SC1 179.41 181.38 181.38 187,91 187.91 175.44 (5) Zone E TC 25,58 13.56 25.86 26.79 26.79 13,28 (5) (I) Represented average residential assessment in SPA 1. (2) FY 1999/2000 assessment may be set at or below this cap without being subject to a majority protest. (3) Revenue for all zones included in overall District 20 amount. (4) All areas share in the cost of atay Lakes Road medians and off-site parkways. (5) Revenue for all zones included in overall ELMD I amount, In general, most budgets have increased due to adjustments in water and contract services, The increase in water is due to projected rate increases and the increase in contract services is due to a CPI clause on contracts. Savings from prior years are proposed to be used to supplement the property owners collections to provide the revenue needed for FY 1999/2000 maintenance while maintaining reserves between 50%-65% (City Code requires reserves between 50%-100%). Staff typically does not retain reserves above 65% in consideration of property owners direction to return as much excess funds as practical. However, where maintaining a 65% reserve could result in future steep rate increases, staff recommends lIIaintaining the current rate. For those districts where the reserve still exceeds 50-65 %, staff recommends using the savings to offset some of the assesslllents to give lower collectibles. This practice should help avoid reserves in excess of 100% in future years, thereby avoiding processing refund checks. Staff generally tries to keep the assessments within the CPI amount allowed by the Municipal Code each year. The following summarizes the major changes for each district. Pursuant to the ordinance, staff has made a distinction between the assessment and collectible amount; the assessment, estimated cost and collection will become the same number whenever an increase in assessment is necessary, The proposed assessment per EDU for FY 1999/2000 represents, in all cases, the prior year's assessment with an inflation factor of 3,6%. The assessment per EDU is the figure to be mailed to the property owners and the collectible is the amount to be collected which is affected by reserves, savings, etc. The collectible per EDU reflects impacts of the reserve requirements, ending fund balances and savings, For a detailed outline, see Attachment A. /If/If Page 5, Itemß Meeting Date 6/22/99 CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY991O0 FY99/oo FY99/00 Assmt/ Collectiont Assmtl Assmt + Assmtl Collection! Revenue EOU EOU EOU CP1 EOU EOU I:SO No.1 $89.61 $40.00 $90.60 $93,86 $93.86 $40,00 $26,472 El Rancho del Rey Units 1-4 Staff recommends that the assessment remain the same as FY98/99 plus a CPI of 3.6% as set forth in the ChuIa Vista Municipal Code, However, staff recommends a collectible of $40 per Equivalent Dwelling Unit (EDU), which is less than the assessment of $93,86. Since the budget per EDU of $75.60 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference, Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 82 % . The General Fund will be reimbursed $7,762 for City staff services from the Open Space District Fund for FY 1999/2000. CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98t99 FY99/00 FY99/00 FY991O0 Assmtl Collectionl Assmtl Assmt + Assmtl Collection! Revenue EOU EOU EOU CPI EOU EOU I~so No, 2 $41.58 $33.00 $42.04 $43,55 $43.55 $33.00 $8,217 Lark Haven Staff recommends that the assessment remain the same as FY98/99 plus a CP1 of 3,6% as set forth in the Chula Vista Municipal Code, However, staffrecommends a collectible of$33 per EDU, which is less than the assessment of $43.55. Since the budget per EDU of $44.47 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 90 %, The General Fund will be reimbursed $2,144 for City staff services from the Open Space District Fund for FY 1999/2000. Because the budget exceeds the proposed assessment, Public Works (including Open Space staft) will review the district's budget and reserve in future years in an attempt to lower the budget and to determine whether there are additional savings, CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY99/00 FY99/00 FY99/00 Assmt/ Collectionl Assmt/ Assmt + Assmtl Collectionl Revenue BOU EOU EOU CP1 EOU EOU 10sO No.3 $284,61 $287.00 $287,74 $298.10 $298.10 $286.00 $36,322 Rancho Robinhood Units 1 & 2 Staff recommends that the assessment remain the same as FY98/99 plus a CPI of 3.6% as set forth in the ChuIa Vista Municipal Code. Staff recommends a collectible of $286 per EDU, which is less than the assessment of $298,10. Since the budget per EDU of$313,57 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 82%, The General Fund will be reimbursed $6,290 for City staff services from the Open Space District Fund for FY 1999/2000. Jt{-f' ..,.,......,..-..,-..,....-.---.-.....'-"--- Page 6, Item--L.:t Meeting Date 6/22/99 Because the budget exceeds the proposed assessment, Public Works (including Open Space staft) will review the district's budget and reserve in future years in an attempt to lower the budget and to determine whether there are additional savings. CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY99/00 FY99/00 FY99/00 Assmtl Collection! Assmtl Assmt + Assmtl Collectionl Revenue EOD EOD EOD CPt EOD EOD hOSO No, 4 $300.61 $223,00 $303.92 $314,86 $314,86 $223,00 $46,830 Bonita Rid~e Staff recommends that the assessment remain the same as FY98/99 plus a CPI of 3.6% as set forth in the ChuIa Vista Municipal Code, However, staff recommends a collectible of $223 per EDU, which is less than the assessment of $314.86 per EDU. Since the budget per EDU of $273,12 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 74%, The General Fund will be reimbursed $8,818 for City staff services from the Open Space District Fund for FY 1999/2000. CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY99100 FY99/00 FY99/00 Assmtl Collection! Assmtl Assmt + Assmtl Collectionl Revenue EOD EOD EOD CPl EOD EOD I~so No, 5 $293.15 $176,00 $296.37 $307,04 $307,04 $175,00 $21,350 Southbav Villas Staff recommends that the assessment remain the same as FY98/99 plus a CPI of 3.6% as set forth in the ChuIa Vista Municipal Code. However, staff recommends a collectible of $175 per EOU, which is less than the assessment of $307,04 per EOU, Since the budget per EOU of $253,78 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference, Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 84%. The General Fund will be reimbursed $5,012 for City staff services from the Open Space District Fund for FY 1999/2000, CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY99/00 FY99/00 FY99/00 Assmtl Collectionl Assmtl Assmt + Assmtl Collectionl Revenue EOD EOD EOD CPt EOD EOD I~so No.6 $144,97 $76,00 $146,56 $151.84 $151.84 $76,00 $12,312 HilltoD Vista Staff recommends that the assessment remain the same as FY98/99 plus a CPI of 3,6% as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $76 per EDU, which is less than the assessment of $151.84 per EOU, Since the budget per EOU of $95.43 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings )1;,;; Page 7, Itemß Meeting Date 6/22/99 and by adjusting the reserve balance. The reserve under this recommendation will be 94%. The General Fund will be reimbursed $2,777 for City staff services from the Open Space District Fund for FY 1999/2000, CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY99/00 FY99/00 FY99/00 Assmtl Collectionl Assmtl Assmt + Assmt/ Collectionl Revenue EDU EDU EDU CPI EDU EDU OSD No.7 - Zenith $101.27 $88.00 $102.38 $106.07 $106.07 $88,00 $9,152 Units 2, 3, & 4 Staff recommends that the assessment remain the same as FY98/99 plus a CPI of 3,6% as set forth in the ChuIa Vista Municipal Code, However, staff recommends a collectible of $88 per EDU, which is less than the assessment of $106,07 per EDU. Since the budget per EDU of $100.49 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance, The reserve under this recommendation will be 86%, The General Fund will be reimbursed $2,055 for City staff services from the Open Space District Fund for FY 1999/2000, CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY99/00 FY99/00 FY991O0 Assmt/ Collectionl Assmt/ Assmt + Assmt/ Collectionl Revenue EDU EDU EDU CPI EDU EDU ¡rSD No.8 $462,63 $366,00 $467.72 $484.56 $484,56 $363,00 $39,930 Rancho Robinhood Unit 3 Staff recommends that the assessment remain the same as FY98/99 plus a CPI of 3,6% as set forth in the ChuIa Vista Municipal Code, Staff recommends a collectible of $363 per EDU, which is less than the assessment of $484.56 per EDU. Since the budget per EDU of $400.00 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 72%, The General Fund will be reimbursed $6,892 for City staff services from the Open Space District Fund for FY 1999/2000. CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY991O0 FY99/00 FY99/00 Assmtl Collectionl Assmtl Assmt + Assmtl Collectionl Revenue EDU EDU EDU CP1 EDU EDU IrSD No.9 $131.11 $t32,OO $132.55 $137,32 $137.32 $132.00 $50,688 El Rancho del Rey Units Staff recommends that the assessment remain the same as FY98/99 plus a CPI of 3,6% as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $132 per EDU, which is less than the assessment of $137,32 per EDU, Since the budget per EDU of $153,08 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 81 %. The General Fund will be reimbursed $9,024 for City staff services from the Open Space District Fund for FY 1999/2000. /1-7 ..-..-.---,--,--.--..----.....-. Page 8, Itemn Meeting Date 6/22/99 Because the budget exceeds the proposed assessment, Public Works (including Open Space staft) will review the district's budget and reserve in future years in an attempt to lower the budget and to determine whether there are additional savings, CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY99/00 FY99/00 FY99/00 Assmt/ Collection/ Assmt! Assmt + Assmt/ Collection/ Revenue EOD EOD EOD CP1 EOD EOD 1750 No, 11 $89.54 $53.00 $90.52 $93.78 $93,78 $53,00 $70,015 Hidden Vista Village Staff recommends that the assessment remain the sallie as FY98/99 plus a CP1 of 3,6% as set forth in the Chula Vista Municipal Code, Staff recommends a collectible of $53 per EDU, which is less than the assessment of $93.78 per EDU, Since the budget per EDU of $87.61 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 98%, The General Fund will be reimbursed $17,237 for City staff services from the Open Space District Fund for FY 1999/2000. CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY99/00 FY991O0 FY99/00 Assmt! Collection/ Assmt/ Assmt + Assmt! Collection/ Revenue EOD EOD EOD CPI EOD EOD 1750 No, 15 $276.13 $214,00 $279.17 $289,22 $289,22 $213,00 $12,141 Bonita Haciendas Staff recommends that the assessment remain the same as FY98/99 plus a CPI of 3.6% as set forth in the Chula Vista Municipal Code. Staff recommends a collectible of $213 per EDU, which is less than the assessment of $289.22 per EDU. Since the budget per EDU of $277.05 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 82%, The General Fund will be reimbursed $2,825 for City staff services from the Open Space District Fund for FY 1999/2000. CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY991O0 FY99/00 FY99100 Assmt! Collectionl Assmtl Assmt + Assmt/ Collection/ Revenue EOD EOD EOD CPI EOD EOD 17S0 No, 17 $132.t8 $62.00 $t33.63 $t38,44 $138,44 $42.00 $1,932 Bel Air Ridge Staff recommends that the assessment relllain the same as FY98/99 plus a CP1 of 3,6% as set forth in the Chula Vista Municipal Code, However, staff recommends a collectible of $42 per EDU, which is less than the assessment of $138.44 per BDU. Since the budget per EDU of $114.78 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 100%. The General Fund will be reimbursed $2,336 for City staff services from the Open Space District Fund for FY 1999/2000, J1~~ ~.-_.. . -- ~. -- -~. ". .h ~~ Page 9, Item4 Meeting Date 6/22/99 CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY99/00 FY99/o0 FY99/00 Assmtl Collectionl Assmtl Assmt + Assmtl Collection! Revenue EOD EOD EOD CP1 EOD EOD 17S0 No, 18 $312.33 $222,00 $315,77 $327,13 $327,13 $221.00 $96,135 Rancho del Sur Staff recommends that the assessment remain the same as FY98/99 plus a CPI of 3,6% as set forth in the ChuIa Vista Municipal Code, However, staff recommends a collectible of $221 per EDU, which is less than the assessment of $327.13 per EDU, Since the budget per EDU of $255,08 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 90 %. The General Fund will be reimbursed $16,547 for City staff services from the Open Space District Fund for FY 1999/2000. CAP: Proposed Proposed OSO No, 20 FY97/98 FY98/99 FY98/99 FY98/99 FY99/00 FY99/00 FY99/00 Rancho del Rey Assmnt/EOD Collectionl Assmntl Assmt + AssmntlEOD Collectionl Revenue EOD EOD CP1 EOD Zone 1 - Oesilt 48.27 0,00 48.80 50.56 50.56 0,00 0.00 Basin Zone 2 - Rice 3,67 3.71 3.71 3.84 3.84 3.84 $15,305 Canvon Zone 3 - H St. 5.22 2,80 5,28 5.47 5.47 4,38 $27,134 Zone 4 - Business 19.45 19,66 19.66 20.37 20.37 20.37 $53,882 Centre Zone 5 - SPA 1 293.30 281.98 296.53 307.20 307.20 307,20 $551,427 Zone 6 - SPA 11 225.36 163.80 227.84 236.04 236.04 163.23 $93,563 Zone 7 - SPA 111 139,11 140.55 140,64 145,70 145,70 145.70 $171,458 Zone 8 - North 32.07 0.00 32.42 33.59 33.59 0.00 0 Oesiltin. Basin Zone 9 - Telegraph 25.47 t3.26 25,75 26,65 26,65 13,23 $694 Rancho del Rey is a phased development of three Sectional Planning Areas (SPA), SPA 1 is almost completely developed, SPA II and SPA III homes are under construction, The OSD was established in 1989 encompassing all three areas with the understanding that the open space improvements would be constructed in phases. Because this is a large district and not all of the itellls to be maintained have a benefit to the entire district, OSD 20 is made up of several zones as indicated above. Every property within the district is in more than one zone. TABLE 3 Typical Combined Assessment (FY99100) SPA 1 (Zones 1 or 8, 2, 3, & 5) $334 SPA II Zones 1 or 8 2 3 & 6 $296 /1---9 Page 10, Itemfl Meeting Date 6/22199 SPA III (Zones 1 or 9, 3, & 7) $162 Business Centre (Zones 1, 2, 3, & 4) * * Industrial (per acre) $921 * Commercial (per acre) $1,158 Due to the various zones within OSD 20, a map showing the proposed typical assessments by area has been attached. Staff recommends that the assessments remain the same for each zone as FY98/99 plus a CPI of 3,6% as set forth in the ChuIa Vista Municipal Code. In each of these zones, staff recommends a collectible which is equal to or below the proposed assessment. The reserves for each zone vary depending upon the budgets, reserves and amortized costs (see budget worksheet). The reserve requirement for this district is acceptable, pursuant to City Municipal Code. The General Fund will be reimbursed $139,272 for City staff services from the Open Space District Fund for FY 1999/2000. CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY99/00 FY99/00 FY99/00 Assmtl Collection! Assmt! Assmt + Assmtl Collectionl Revenue EDU EDU EDU CPI EDU EDU I~SD No. 23 - Otay $357,10 $112.00 $361.03 $374.03 $374.03 $85,00 $7,579 Rio Business Park Staff recommends that the assessment remain the same as FY98/99 plus a CPI of 3,6% as set forth in the Chu1a Vista Municipal Code. However, staff recommends a collectible of $85 per EDU, which is less than the assessment of $374.03 per EDU. Since the budget per EDU of $142.41 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference. Funds are available to because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 100%. The General Fund will be reimbursed $2,379 for City staff services from the Open Space District Fund for FY 1999/2000, CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY99/00 FY99/00 FY99/00 Assmt/ Collection/ Assmt/ Assmt + Assmt! Collection! Revenue EDU EDU EDU CP1 EDU EDU OSD No. 24 $535,12 $375.00 $541.01 $560.48 $560.48 $447.00 $17 ,880 Canvon View Homes Note: OSD 24 consists of only 40 townhomes sharing in the cost of large, landscaped slopes adjacent to the townhomes, Staff recommends that the assesslllent remain the same as FY98/99 plus a CPI of 3,6% as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $447 per EDU, which is less than the assessment of $560.48 per EDU, Since the budget per EDU of $502.63 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference, Funds are available to do this because of prior years' savings and by adjusting the reserve balance, The reserve under this recommendation will be 85%. The General Fund will be reimbursed $3,447 for City staff services from the Open Space District Fund for FY 1999/2000, )Jj~/tJ Page 11, Item--1..:l Meeting Date 6/22/99 CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY991O0 FY991O0 FY99/oo Assmt/ Collectionl Assmtl Assmt + Assmtl Collectionl Revenue EDU EDU EDU CP1 EDU EDU 10SD No, 26 $419.99 $229,00 $424,61 $439.90 $439.90 $228.00 $4,332 Park Bonita Staff recommends that the assessment remain the same as FY98/99 plus a CPI of 3.6% as set forth in the Chu1a Vista Municipal Code, However, staff recommends a collectible of $228 per EDU, which is less than the assessment of $439.90 per EDU, Since the budget per EDU of $339.95 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference, Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 100%. The General Fund will be reimbursed $1,479 for City staff services from the Open Space District Fund for FY 1999/2000, CAP: Proposed Proposed FY97/98 FY98t99 FY98/99 FY98/99 FY991O0 FY99/00 FY99/00 Assmtl Collectionl Assmtl Assmt + Assmtl Collection! Revenue EDU EDU EDU CP1 EDU EDU ;SD No, 31 $433.85 $108.00 $438.62 $454.41 $454.41 $1.00 $345 Telegraph Canyon Estates Staff recommends that the assessment remain the same as FY98/99 plus a CPI of 3.6% as set forth in the Chu1a Vista Municipal Code. However, staff recommends a collectible of $1 per EDU, which is less than the assessment of $454.41 per EDU, Since the budget per EDU of $280,74 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference, Funds are available because of prior years' savings and by adjusting the reserve balance, The reserve under this recommendation will be 100%, The General Fund will be reimbursed $14,514 for City staff services from the Open Space District Fund for FY 1999/2000. There have been excess funds available in this district because staff anticipated that the turnover of improvements would occur in FY94/95. Therefore, staff began collecting the assessment with the belief that the City would begin maintenance that fiscal year. However, turnover of improvements did not occur (except the medians), because The Baldwin Company, the original owner, did not complete the improvelllents prior to going bankrupt. This left excess funds in the district and no revenue was collected FY95196, For FY96/97, staff anticipated that the turnover of improvements would occur that fiscal year and, therefore, collected $271 per EDU. Since turnover of improvements did not occur because a guest builder did not develop the property as anticipated, only $1 per EDU was collected in FY97/98, For FY98/99, it was anticipated that the turnover of improvements would occur in July of 1998 and therefore $108 per EDU was collected. However, only a portion of the improvements were turned over to the City, which has left excess funds. Although it is anticipated that the turnover of additional improvements will occur next fiscal year, staff recommends collecting only $1 per EDU for FY1999/2000, Funds are available to do this because of prior years' excess funds. ;tfr-/I ..-.-...,....,--..- ..-,-.-,.... Page 12, Itemß Meeting Date 6/22/99 CAP: Proposed Proposed FY97/98 FY98/99 FY98/99 FY98/99 FY99/00 FY99/00 FY99/00 Assmt/ Collectionl Assmtl Assmt + Assmtl Collectionl Revenue EDU EDU EDU CP1 EDU EDU OSD No, 33 $1,072.22 $0,00 $1,084,01 $1,123.04 $1,123,04 $0.00 $0 Broadway Business Home Village No funds collected since inception. Staff recommends that the assessment remain the same as FY98/99 plus a CPI of 3.6 % as set forth in the ChuIa Vista Municipal Code. The budget per EDU is $0.00, therefore, staff recommends a collectible of $0.00 per EDU, The reserve under this recommendation will be 0%, since no construction is anticipated to be colllpIeted during FY I 99912000 , Community Development has requested, since FY96/97, that no funds be collected because no construction has been done on this project. However, staff may recommend collecting revenue for FY 200012001 because funds will be needed to do required open space maintenance if construction is completed that fiscal year. FY 99/00 Proposed Proposed Eastlake FY97/98 FY 98/99 FY98/99 CAP: FY 99/00 FY 99/00 FY 99/00 Maintenance Assmtl Collection! Assmtl FY 98/99 Assmtl Collection! Revenue District No.1 EDU EDU EDU Assmt + EDU EDU CP1 ELMD #1(1) - $28,097 Otav Lakes Road Zone A - 9.93 8.48 10.04 10.40 10.40 9,07 $69,036 Eastlake 1 Zone B - Eastlake 16.24 11.53 16.42 17.01 17.01 12,13 $34,022 Greens Zone C - Olympic 134.52 7.83 136.00 140.90 140.90 6.12 $2,035 Training Center Zone D - Salt 179.41 181.38 181.38 187.91 187,91 175.44 $70,439 Creek I Zone E - 25,58 13.56 25.86 26.79 26.79 13,28 $5,128 Telegraph Canyon Channel(2) (1) All areas share in the cost of Otay Lakes Road medians and off-site parkways. (2) Ponions of EastIake I BC and Eastlake Greens are in benefit area. Costs vary by parcel due to the various zones, land uses and attributed traffic generation factors within ELMD I. A map showing the proposed typical assessments by area has been attached, On this map, the Eastlake Business Center parcels' assessment is shown at $352.37 per acre, Staff recommends that the assessments for each of the areas remain the same as FY 98/99 plus a CPI of 3,6% as set forth in the ChuIa Vista Municipal Code. Staff recommends an annual collectible, as shown in Table I, which is below the assessment amount. The reserve for each zone is at 65% or above, )tf---/,2 ----.--.... Page 13, ItemJ.:i. Meeting Date 6/22/99 OIvmoic Trainin~ Center On December 17, 1996, City Council, by Resolution 18528, approved an agreement to allow the ARCO Olympic Training Center to continue maintenance of the Wueste Road landscape improvements. Incorporated in the agreement are safeguards to ensure the maintenance is performed to City standards, There are indemnity provisions for both parties for the use of the paths along Wueste Road. However, OTC turned over to the City the maintenance of a median on East Orange Avenue. Staff recommends setting the collectible at $6,12 per EDU to cover the maintenance cost. Public Works' staff (Open Space) has indicated that OTC will continue maintenance of the Wueste Road landscape improvements until the Eastlake Trails' property has been developed, After this occurs, OTC will turn over all the maintenance to the City as the property owners within Eastlake Trails will share in the maintenance cost. Presently, OTC is maintaining Wueste Road slopes with the services of the landscape maintenance firm performing lIIaintenance services within the Training Center. This contractor is performing this service at a price lower than a typical City solicited price. Landscape maintenance firms sometimes subsidize the maintenance of high visibility, high publicity areas to take advantage of publicity opportunities such sites can provide. The proposed assessment was developed on the basis of the City maintaining all of the Wueste Road landscape improvements. Until the City takes over lIIaintenance, there will continue to be a large difference between the collectible and the proposed assessment. Notice The public hearings were noticed pursuant to Government Code 6063 which requires that notice be published at least once a week for three weeks and at least 10 days before the second public hearing. Staff mailed notice of the hearings to all open space districts. The notice informed the resident of hislher district, the current year assessment, the CPI adjustment and the proposed assessment for FY 1999/2000. The Parks and Recreation Department has conducted information meetings for all property owners within each district in March. At the meeting, staff explained the proposed budget to interested owners (approximately 10,000 properties received notice). Plans, specifications, and assessment roll are on file in the Public Works/Engineering office. FISCAL IMPACT: Staff costs associated with the open space program are generated by Public Works (including Open Space staff), Data Processing and Finance. Contractual costs ($809,859) are outlined in Attachment A. These costs are recovered through the Open Space District collectible, causing no net fiscal impact. The total General Fund reimbursement for City staff services from the above listed Open Space District Funds for FY 1999/2000 is estimated to be $285,517. Attachments: A Cost Summary B District Maps COSO 20 Assessment Map D ELMO 1 Assessment Map H, \HOMEIENGlNEERIAGENDA \OSRl99p I . 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'ë~ :::¡[;;¡:j~;;;;g=b!;¡: ~I'- 00";";""';";""".,; «0>" -"""...,...,'" >- """- u. en ¡:: co gJ gJ gJ.<:: co ~ 0 ~ ~~~~tro ~ ¡s ~û5ü;;:~~~ß 0; ¡;- ro.!,1I~o..o..o..roU . 0: o~wroCJJCJJCJJO>- ó. ~ ;~~~~~~~~ ~ .§ 1! 1! 1! 1! 1! 1! 1! 1! 1! g¡ & ~~~~~~~~~ }1/.l. ~ Ï Rancho del Rey Open Space District No, 20 Amortized Costs Amount Accumulated for Fiscal Years: 90-91, 91 92-93, 93-94, 94-95, 95-96, FY 99-00 one Description 96-97,97-98,98-99 Amount Work Description 1 Desilting Basin $134,818 $0 Desilting basin maintenance (every 5 years) at E. H St. $33,500 $0 Stabilization stuuctures maintenance (every 3 years) $3,649 Miscellaneous 2 Rice Canyon $0 $0 Staging Area - AC. overlay and stripe (every 5 years Trail area $357 $228 Staging area maintenance (30 year period) $0 $0 Miscellaneous 3 E. H street $0 $0 4 SPA 1 Phase 1 $36,018 $4,002 Monumentation replacement (30-yr period) (Business CtL) 5 SPA 1, Phases 2-6 $327,593 $34,617 Theme wall & monument replacement (30-yr) 6 SPA2 $0 $0 7 SPA3 $0 $0 8 Desilting Basin $0 $0 Access Road to be built. at Glen Abbey 9 Telegraph Cyn Chan $2,888 $722 Money on deposit pending payment (SPA 3 area) Total $538,823 $39,569 Notes: 1. Zone 1 - $26,230 (5 yrs) & $6,700 (3 yrs) for desilting basin & stabilization structures not collected beyond 5 yrs per Code; Zone 2 $873 (5 yrs) for AC not collected. 2. Zone 2 - $12,044 from misc reserve used for mtc (95/96). 3. Zone 2 & 3 - Amortized cost for walls not determined. 4. Zone 2 - $3,990 from mise reserve used for mtc (FY97198). 5. Zone 2 - $8,470 from mise reserve used for mtc (FY98/99). 6. Zone 2 - $4,365 from Staging Area - AC. overlay and stripe (FY98199). 7. Zone 2 - $1 ,695 from Staging area maint (FY98t99). 8. Zones 6 & 7 - Theme wailimonumentation to be added. 9. Zone 8 - Amortize cost at 2 years pending construction of access road. 10. Zone g - See TC spreadsheetfor cost breakdown on channel. h:\home\eng;nee~openspac\99cd'ann.wq1 4123/99 )&j/;21 Eastlake Maintenance District No.1 FY 1999/00 BUDGET WORKSHEET Overall Zone A Zone B Zone C Zone D Zone E OLR Eastlake I Greens OTC Salt Creek TC Chann TOTAL Budget 29,938 72,206 34,401 1,829 69,209 6,378 213,961 Reserve Req't 29,938 46,934 22,361 1,189 44,986 0 145,407 Special Reserve 0 0 0 0 0 27,970 27,970 Total Funds Req'd 59,876 119,140 56,762 3,018 114,195 34,348 387,338 Less amount in reserve 29,599 45,767 20,673 873 39,599 27,970 164,481 Less estimated interest 2,180 4,337 2,066 110 4,157 1,250 14,100 Subtotal 31,779 50,104 22,739 983 43,756 29,220 178,581 Net payment 28,097 69,036 34,022 2,035 70,439 5,128 Participating ADT's 137,045 98,286 33,759 5,000 4,234 386 FY 99/00 Net paymentlEDU 2.05 7.02 10,08 4,07 166.36 13,28 FY 99/00 CostlEDU 2.18 7.35 10,19 3.66 163.46 16.52 Asmt Asmt Asmt Payment Payment Asmt> FY 97/98 FY 98/99 FY 99/00 FY 98/99 FY 99/00 Payment Zone AlOLR 9,93 10,04 10.40 8.48 9,07 Yes Zone B/OLR 16,24 16.42 17.01 11.53 12.13 Yes Zone C/OLR 134,52 136,00 140.90 7.83 6,12 Yes Zone D/OLR 179.41 181,38 187.91 181.38 175,44 Yes Zone E 25,58 25.86 26.79 13.56 13.28 Yes Notes: 1, OLR shown as part of Zone A & B 2, Budget for OLR is for ELMD1 only, balance is in OSD 31 for FY99/00. 3, FY 99/00 Zones A thru D and OLR share DPW staff ($5580), included in budgets, 4, Zone E is not budgeted, reflects $80 adjustment-see budget line 5, Zone D/OLR includes Zone A h :\home\engi neer\openspac\9gelsp, wq 1 4/23/99 ¡Lj/23 ~ ~ I; ~ t5t5 . ~~ >- 1Ji~ tJ . ~ ~ ' 0 i ~ I \ I '. 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THIS - OAT or ---' 'n,. ~ ClT" C"'.. - C'~ or CHUJ, 'ISTA --- ASSess...., 0 S""'"' IDUN(WI'f ~ ASStSS.tN' NU'." '"'a THIS -- 0.. 0' --, ',.. AT -- ,. IN{ O"'CE Of TN' COU'" .wo -0' or TH< COUNTY or SAN 0"00, STArr Of C., 'O'NLA. [=:J "'0."'0 0'" ,.Act COUNTY 'UO O. 0' SAN 01"0 COU'" , .J." .00 oeo .00 C3 OIIN'.CH-" ,,"OSc.,c ".'-IC SCALI: ) ~/'Íí,íí~ -0'-1" CAre O'CN SOAC' OPEN SPACE DIS"RICT NO. 31 )L// SHEET NO, 1 Of' -,-,~~.,..,.."..."~..,,.- ...,..-.. ...-~..,,- ,p."..., I!!!:!J~ ~Ð .: . 01;.1 ~ ~ ~I i I >p ! I L'!!IU . ! -- 1« s£ . I .OÞ- .; it Zfi I,! r ,- . G ~ I: I' = fi L'!!I ¡ i Wu I æ.: I I Ð~ t i G ill,' )= œ " ~~Ifli I f .:~ ~ .0 '9 ~JIJ ~ ' .c 0 . I§g I ~ J n'lt III I I . Utili I I,f I iH I tli : I 1IIIillf J ill I 'Iii !II I HI'I Ii I" h' .1 .'1/1 II' I /tj-tf1 !I~ hl.1 I ~II . .. .... . 0 z ~ t- ~-4¡ 0 zf - 50s ~ 'u ' c;ïf t-Q4. -. Q.>~ ' .~ ~= ä ~1i8 ã . z 0 ~ LLI. 'Ii ~ ::1 « .- ~ Q!i .~ ä ~. ~ ~ ~ LLI . f ~ ! . EAST LAKE MAINTENANCE. DISTRICT NO.1 CITY OF Q4ULA VISTA . COUNTY OF SAN DIEGO. STATE OF CALIFORNIA \\~- ~, ~ ~. '.. - ~\\ 0 ~ J \ .",' II /" ... \\ ......-=,::::, 6/ I' \\ / / /'/""" ~ " ~d / \ I ~....¡J/I \~.J / "..::;.-::'/ '\~ ~ ; I I / ) '.....//' " f'/ . I I I I ('0.:.... '/. 'A/ lillÚ 1/ I{' ~í' \\! I \ \ II IiI \ \' \\ ~/ ; ( I!i t..Jl ZONES Ii Ir' \ r=-Jì~~ \1\ . I I " ,,----' & . I II' ", ",----, I' ~ ,.:::::--"" ~ Ii' ~ 1\ -- \\~ l.f \~ II 1 / / \\ ~~ ¡ I i/ ~\ "1~ I II \;... ,,~ I Ii "\. ~\ r'" - - ,,~ ,~-~ ,,~ " ~ ". I '\~ ~ /, ~ " -/ J '~ .f/ j~ ~. "' I "":----:::;'"' ..... ~ ---~/.. -'" '" .' ::: ;::'7~ - .::'"-'" /1--tf) . --.".--'11:1---" ..... II.GO. &1&..&08 .- - - on- __" .. - -=a.a, IM'IUØ _.~ 88ftIeT lID, I M.A '2.. .., IIU .. . ,----,------ ------.--- ~ EASTLAKE MAINTENANCE DISTRICT NO. I . CITY OF QiULA VISTA COUNTY OF SAN DIEGO, STATE OF CALIFORNIA - - . . - , ZONE C , / (~t/ l _.CI . .am - I'll - -*'" 01' ... DlIIIO .»IIIICOI Þaac... - _IIT- "I"_OI'-~. ~ --- -- 110. J .., 110.8 01' . - -- \\\ ~ \¡\ ..... \c_-~ \ ß / //- /~--- ---/, if I,' I"~ /, COUNCIL AGENDA STATEMENT Item /5 - Meeting Date 6/22/99 ITEM TITLE: Public Hearing to consider testimony on the FY 1999/2000 levy of assessments for City Open Space District No. 10. SUBMITTED BY: Director of Public Works ~ REVIEWED BY: City Manager ~:~ ~ (4/Sths Vote: Yes_NoX) Based upon the advice of the City Attorney, agenda items and have been separated due to conflict of interest concerns. Two Council members own property subject to the proposed assessment in this district. Conncil shonld note that agenda statement gives aU backgronnd information and details on open space districts in general which is applicable to this item, but does not include specific information on Open Space District 10. RECOMMENDATION: That Council: 1) Open the hearing, take testimony, close the hearing. 2) Direct staff to return on July 13, 1999 for the second scheduled public hearing. DISCUSSION: This agenda item is the yearly resolution to assess for open space maintenance within Open Space District Number 10 located along East J Street, west of Paseo Ranchero (see Attachment A). Table 1 relates the present year's assessment to the proposed assessment for Fiscal Year 1999/2000. Agenda item of tonight's agenda contains all the general information regarding open space districts. TABLE 1 PRIOR FY'S VS. FY 1999/2000 ASSESSMENT/COLLECTIBLE FY99/00 Proposed Proposed FY97/98 FY98/99 FY98/99 CAP: FY99/00 FY99/00 FY99/00 Assmtl Collection/ Assmtl FY 98/99 Assmtl Collectionl Revenue EDU EDU EDU Assmt + EDU EDU CPI(1) Open Space District No. 10 EI Rancho del Rey 6 & $88.48 $87.00 $89.45 $92.67 $92.67 $87.00 $57,278 Casa del Rey 01 FY 1999/2000 assessment may be set at or below this cap without being subject to a majority protest. Staff recommends that the assessment remain the same as FY 98/99 plus a CPI of 3.6% as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $87 per Equivalent Dwelling Unit (EDU), which is less than the assessment of $92.67. Since the budget per EDU of $88.41 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 76%. Because this district was formed as a result of a 100% petition by the )~// Page 2, Item 6 Meeting Date 6/22/99 land owners and the assessment is not being raised above the CPI, as provided for in assessment formula, this district is exempt from the provision of Proposition 218. FISCAL IMPACT: Staff costs associated with the open space program are generated by Public Works (including Open Space staff), Data Processing and Finance. Contractual costs ($31,525) are outlined in Attachment B. These costs are recovered through the Open Space District collectible, causing no net fiscal impact. The General Fund will be reimbursed $8,941 from the OSD fund for FY 1999-2000. Attachments: A District Map B Estimate of Cost H,'HOME'ENGINEERIAGENDA 10SD10p1. BOB /5'/2 .' . . -_. - -- - .~ ~. c¡Q ~. ffi . - ~ . ~ g :~~ ~ .:¿ lSb ~ i~ >- i ~ +--' - u E U \J .~ ~~ .. ;::~ - ~ ./ ~ ~ ~~~~ ~~ ~~ ~ ~î~~~ Œ ~~~~~~§~$~~~~~ I . ~B~~ I~ ~~ ç ~;§~~ ~ I~~.i.~iø~.~i~ ~ ~ alII ~~ a~ ø ~§~~i i i81Irilalg'o~~ .§. g.o""" ~1D g.i[ ~~9!.~;>J r;1 .s3g:go~-gØøõ g, en m ¡¡ ~caa 0' ~m ø~¡¡¡~ß 0 3¡¡;9!.",Oø~"'3 ~ '" ~ !j. """ 3~ ",,0 ø§~~" š: 8.¡¡;-øa~,,_.<!Q!. g. $. >- 'ii ~9' ~g:~c ¡¡¡~<!,j» g.~£=,~¡¡¡,j~:Jg ¡;1 m a 0 "'~ a z '" 3 Z ~ ,,",,0'15' ~ë: po ~ 0 ~ 3 :!1 ~~ 3 ~ ~ r;1 ~ g.g:~ ~ ~ ~ ~ ] ~ ~,] ~ ~ ~ g ~ 0 ~;f 3 ~ ¡¡:¡ 2 &;Q!. ¡;1 ~ æ g: æ m ~ a. ¡:: "ò ¡;¡ - ¡;¡ 8 ~ ¡¡ ~ m 3 ~ '" '" '" <ô § :g c """...", '" "" -i ~ '" ."':f:: -'" -"" -~5" -'" '" ~ 0 (J> ~ ~ ~ ~ ~ ~ ~~ ~~ ~ ~~~~~ß ~ g~ ~ , ~ N N'" ~ "" ~~Oo"" ~ ~~~~~~ ~ oZ - ~~~ ~ ~~ ~~ ~ ggg~g g gggggg g ~ ~ ~o 0 0 ~f; ~ õ ~'" ~ ~ '" ~~ 8 '" '" 9'~ -'" -'" .05" -'" '" ,00 ~ ~~'" ~ ~ '" 0° ~~ ~ ~~~~~~ ~ <ô~ '" ~~~ ~'" ~ ~ "'~o~~ ~ ~~o"'~~ ~ ~o ~o~~~~ ~~ ~~ ~ ggoo. ~g g gggggg g ~ ,0 0, 0 0 ." - ~ ~~ ~ g¡ ~"" '" ~o - '" - -.J - - - - - "'"' >- g ~~'" ~ ~ '" ~w ~~ ~ ~~~~~~ ~ ~ ~ . ~~~ ~'" ,~ ~ o~o~~ ~ ~~~~~~ ~ "" >- ~~~ ~~ ~~ ~ ggg~g g gggggg g ~ ~ m Z -i '" /5/1 COUNCIL AGENDA STATEMENT Item / ¡, Meeting Date 6/22/99 ITEM TITLE: Public Hearing to consider testimony on the FY 1999/2000 levy of assessments for City Open Space District No. 14. SUBMITTED BY: Director of Public Works r REVIEWED BY: City Manager roe. . (4/Sths Vote: Yes_NoX) j¡J~¡>' Based upon the advice of the City Attorney, agenda items and have been separated due to conflict of interest concerns. Two Council members own property subject to the proposed assessment in this district. Council should note that agenda statement gives all background information and details on open space districts in general which is applicable to this item, but does not include specific information on Open Space District 14. RECOMMENDATION: That Council: 1) Open the hearing, take testimony, close the hearing. 2) Direct staff to return on July 13, 1999 for the second scheduled public hearing. DISCUSSION: This agenda item is the yearly resolution to assess for open space maintenance within Open Space District Number 14 located along the North and South of Country Vistas Lane (see Attachment A). Table 1 relates the present year's assessment to the proposed assessment for Fiscal Year 1999/2000. Agenda item of tonight's agenda contains all the general information regarding open space districts. TABLE 1 PRIOR FY'S VS. FY 1999/2000 ASSESSMENT/COLLECTIBLE FY99/o0 Proposed Proposed FY97/98 FY98/99 FY98/99 CAP: FY99/00 FY99/00 FY99/00 Assmt/ Collection/ Assmt/ FY 98/99 Assmt/ Collection/ Revenue EDU EDU EDU Assmt + EDU EDU CPI(l) Open Space District No. 14 Bonita Long Canyon $298.10 $257.00 $290.98 $301.45 $301.45 $291.00 $254,148 (i) FY 1999/2000 assessment may be set at or below this cap without being subject to a majority protest. Staff recommends that the assessment remain the same as FY 98/99 plus a CPI of 3.6% as set forth in the Chula Vista Municipal Code. However, staff recommends a collectible of $291 per Equivalent Dwelling Unit (EDU), which is less than the assessment of $301.45 per EDU. Since the budget per EDU of $294.98 exceeds the collectible amount, staff recommends utilizing the fund balance to make up the difference. Funds are available to do this because of prior years' savings and by adjusting the reserve balance. The reserve under this recommendation will be 80%. Because this district was formed as a result of a 100% /J -) Page 2, Item / b Meeting Date 6/22/99 petition by the land owners and the assessment is not being raised above the CPI, as provided for in assessment formula, this district is exempt from the provisions of Proposition 218. FISCAL IMPACT: Staff costs associated with the open space program are generated by Public Works (including Open Space staff), Data Processing and Finance. Contractual costs are $121,530 as shown on Attachment B. These costs are recovered through the Open Space District collectible, causing no net fiscal impact. The General Fund will be reimbursed $37,695 from the OSD fund for FY 1999-2000. Attachments: A District Map B Estimate of Cost H.IHOMEIENGINEER\AGENDA 105014,1. BOB /b/}- w ~ u ~st \,Q ~ z > w <{ ~o g <{z :2: I.L.. W 01:; uf- >- ~~ f- (/)g: u z(/) w Wi5 I 0... f- 0 -1 \ i ~ ~ ~~~~ ~~ ~~ ~ ~î~~~ ~ ~Q~~~~~~Q~~~~~ 0 ~ nB~~ I~ n~ ç ~~§~~ ~ Iffi~~i.Ra~$.~~ø I ~ ~I~~ ~~ ~~ ø ~l~~<! š: i~1D~!i!~;g,~~g g' nm33 ",!2: n!2: øo.,,"'" ==< -.03õ':;:","-oo- 0 9!. m <Q. ::f0""" ~"'::flt m",-~;>J m .s3g::JO-1ï:øøo = ø en 0 "caa 0' "ill ø~¡¡¡~'" 0 3-9!.",oø""" 3 ~ '" ::! ~ .s;;. 3~.sg ~n~t š: 8.~øH"~$.~ g. $. j; 0 ~S' ~g:~ m~<!¡¡¡» g.~¡;:;.~",gO':Jg ¡;1 ¡¡ a 0 "'~ a z '" 3 Z ~ ¡;'êoO'15'~~ë: po ~ 0 ~ ~ :!1 ~~ ~ ~ ~ r;1 ~ gg~ ~ ~ ~ 9- ' '" -g, , z!" 2" >- :g g"J '< g ~!!'. a51 :;: ¡¡, 05;;" ~ 05 ~ ~ iQ9!. 91 ~ ~ a ~ o' fF J; : 0 g w '" '" '" ¡¡; 8 :g '" ~~ ~ ~ ...",~~~g¡ ~ ¡p ~ ~ ~ ~ ~ ~~ 0 œ o~~œ~~ ~ N~ ~ ~ š ~~ ~<C ~ ~~o~~ ~ g~~~~~ ~ 891 ~ ~~ ~ ~~ ~~ ~ ggg~g g gggggg g ~ ~ ~~ ~ ~ ¡¡;g 8 """ ~ '" ~~ ~ Þ ~~~~~9 ~ ~~ ~~~ ~'" ~ ~ ~~ ~~ œ g~~~~~ ~ ~~ ~~~~ ~~ ~~ ~ 6;~g6 ~ g~~6g~ g ~~ ~...~oo ..." ~~ ~ oog~o 0 000000 0 ~ ~~ "! ~ ~:;: """~ ~ '" ~~ ~ ~ ~~~~~9 ~ ~ ~ ~~~ ~'" ~ ~ 8~ ~~ ~ g~~~~~ t ~ ~ ~~~ œN ,. '" ~Ooo~ ~ ~~"'~~" ~ ~ a ~~~ ~~ ~~ ~ ggg~g g gggggg g œ ~ z ~ '" /b /f #/r;; 1584 Chaparral Drive, Bonita, CA 91902 June 22, 1999 City of Chula Vista City Council 276 Fourth Avenue Chula Vista, CA 91910 Re: Proposed Assessment for Fiscal Year 1999/2000 for Maintenance of Open Space District 14 Dear Mayor Horton and Councilmembers Davis, Moot, Padilla and Salas: Thank you for the opportunity to express our opinion with regard to the increase proposed for Open Space District 14's assessment. Your Notice of Public Hearing states that the Council is considering the use of the Consumers' Price Index (CPI) estimated at 3.6% for the increased assessment. 1. If the Department and the City Council decide to increase this assessment, why should the CPI be used? Our understanding is that the CPI includes many components, a major one being the cost of housing. Is the cost of housing relevant to the maintenance of our Open Space? If it is relevant, what percentage of the budget is affected by the cost of housing? Is each of the other components relevant to the Open Space District budget? 2. Does the City require each Department to use zero-based budgeting each fiscal year? In other words, does each department chief have to justify the budget from the bottom (zero) up instead of adding on an increase to last year's numbers? 3. We understand that sub-contractors are employed in the mainte- nance of the open space. The contracts for these subs seem to change regularly, and this may be usual and ordinary. How much supervision by the City Department is given to these subs? As proposed, we object to this increase in the District assessment. Respectfully, Warstler Family Trust !~~;£-;;:-~, ~ ~~ o-Trustee COUNCIL AGENDA STATEMENT Item /1 Meeting Date June 22, 1999 ITEM TITLE: Public Hearing - To Consider Granting A Waste Management Franchise Renewal through September 4,2007 with an Option to Extend Until the Year 2015 Subject to Satisfactory Performance, and Potential Additional Extensions at City's Sale Option until the Year 2029 Ordinance 02792 Granting a Waste Management Franchise Renewal to Pacific Waste Services through September 4,2007 with an Optoin to Extend Until the Year 2015 Subject to Satisfactory Performance, and Potential Additional Extensions at City's Sole Option until the Year 2029 In Accordance with the Terms and Conditions ofthe Franchise Agreement, and Authorizing Mayor to Execute Same (First Reading) Resolution 19501 Approving in Concept a Landfill Agreement with Otay Landfill, Inc. Regarding City Trash Flow and Landfill Mitigation SUBMITTED BY: Conservation Coordinator))\ Reviewed By: City ManagerG~~ -'7/' f/)' (4/5ths Vote Yes - No Xl The current solid waste and recycling Franchise Agreement expires on September 4, 2002. In anticipation of the end of that agreement, staff has worked with the City's current service provider Pacific Waste Services (PWS) to develop the terms and conditions for a proposed solid waste management Franchise renewal and a companion landfill agreement. Staff presents the proposal to Council as an alternative against which Council can measure the potential benefits of a competitive bid process. The timing ofthe presentation is designed to preserve Council's option to choose the competitive process and take advantage of Pacific's best offer prior to implementing a competitive process. Before Council can consider action on the possible renewal of a Solid Waste Franchise, the City Charter requires that a resolution of intention be adopted and a public hearing be scheduled. Council adopted a resolution of intention on June 8, 1999 and set a public hearing for the first reading of the Ordinance for June 22,1999. The following report summarizes the terms ofthe proposed agreements. Will be delivered under separate cover on Friday June, 18, 1999. /7----0 COUNCIL AGENDA STATEMENT Item Meeting Date June 22. 1999 ITEM TITLE: Public Hearing - To Consider Granting A Waste Management Franchise Renewal through September 4, 2007 with an Option to Extend Until the Year 2015 Subject to Satisfactory Performance, and Potential Additional Extensions at City's Sale Option until the Year 2031 Ordinance 02792 Granting a Waste Management Franchise Renewal to Pacific Waste Services through September 4,2007 with an Option to Extend Until the Year 2015 Subject to Satisfactory Performance, and Potential Additional Extensions at City's Sole Option until the Year 20311n Accordance with the Terms and Conditions of the Franchise Agreement, and Authorizing Mayor to Execute Same (First Reading) Resolution 19501 Approving in Concept a Landfill Agreement with Otay Landfill, Inc. Regarding City Trash Flow and Landfill Mitigation SUBMITTED BY: Conservation ~dinator \~,,~ ~./ Reviewed By: City Manager (4/5ths Vote Yes - No Xl The current solid waste and recycling Franchise Agreement expires on September 4, 2002. In anticipation of the end ofthat agreement, staff has worked with the City's current service provider Pacific Waste Services (PWS) to negotiate the terms and conditions for a proposed solid waste management Franchise renewal. The timing of the presentation is designed to take advantage of a unique opportunity to get Pacific's best offer for a franchise at a time when Pacific's affiliate Otay Landfill, Inc., is relying on the City's solid waste flow and support in connection with a pending landfill expansion. Staff believes that the proposed franchise agreement offers tremendous benefits to ratepayers in terms of rate stability and enhanced performance--including a guarantee that Chula Vista residential ratepayers and small businesses with curbside services will continue to have the lowest contract rate in San Diego County. The City revenues shall also increase but without any resulting increase in rates. A companion landfill agreement also provides benefits that will help mitigate the expected impacts of a pending landfill expansion before the County of San Diego. Before Council can consider action on the possible renewal of a Solid Waste Franchise, the City Charter requires that a resolution of intention be adopted and a public hearing be scheduled. Council adopted a resolution of intention on June 8, 1999 and set a public hearing for the first reading of the Ordinance for June 22,1999. The following report summarizes the terms of the proposed agreements. RECOMMENDATION: Approve on first reading the Ordinance to grant a franchise renewal for solid waste and recycling services, and find that Pacific's performance under the current Franchise is hereby deemed satisfactory for the purpose of such franchise. Staff is also requesting that Council provide conceptual approval of the Resolution outlining the terms of a companion landfill agreement that contemplates a long-term disposal agreement, stable disposal rates and targeted mitigation related to a pending expansion. /7-/ BOARDS/COMMISSIONS RECOMMENDATION: The proposal addresses a number of service issues recommended by the Resource Conservation Commission and a full report regarding their response can be made following the Commission's June 21, 1999 meeting. BACKGROUND: The current Agreement with Pacific Waste Services ends on September 4,2002. On August 4, 1998 City Council approved the assignment of the current Franchise Agreement to Pacific Waste Services (Pacific) and the remainder of the final five-year extension to the Agreement. The agreement to extend the Franchise included a number of service and program improvements that were designed to improve customer satisfaction, keep City streets cleaner and assist with state mandated solid waste and recycling goals. The primary objectives of that agreement were to: . Offer ratepayers the service and price options they need to meet state mandated recycling goals, . Assure that all occupied properties have at least weekly collection service, . Establish better communication between Pacific and their customers, . Require Pacific to resolve customer service issues promptly through measurable and enforceable performance standards, . Provide Pacific with a financial incentive to improve service quality, . Stabilize rates for residential, commercial and industrial ratepayers. DISCUSSION: Providing Council with a proposal from the current service provider at this time was important for two reasons: 1) The current franchise expires on September 4, 2002 and City staff would need eighteen to twenty-four months to prepare a request for proposal and provide a successful respondent with adequate time to purchase vehicles and implement a new service program. 2) Staff believes that current market conditions, the proposed landfill operational changes, and a long-term commitment ofthe City's waste have made it possible to develop a unique package of benefits for ratepayers, residents and City programs. This package of benefits has not been available in the past, is not likely to be available through an alternate service provider and will not continue to be available in the future. A full copy of the proposed Franchise Agreement is attached as Exhibit A. The primary objectives of the proposal before Council today are to: . Guarantee that Chula Vista residential ratepayers and small businesses with curbside waste and recycling services will continue to have the lowest contract rate in San Diego County, . Stabilize all rates and assure that they remain competitive throughout the life of the Agreement, . Provide a variety and level of service options that allow ratepayers to control their future rates, . Provide the variety and quality of services that encourage residents and businesses to meet State environmental mandates, . Make recycling participation as convenient and easy as possible, . Reduce or eliminate the illegal disposal and litter problems in the City, . Provide solid waste and recycling collection, processing, marketing and waste disposal services that will keep up with the City's growth, . Maximize the limited resources of the library, recreation, parks, street maintenance, street tree, and other general funded programs by reducing their solid waste management costs, and . Utilize the City's Franchise relationship with Pacific as leverage to develop mutually agreeable mitigation measures and benefits to offset those potential impacts from the landfill that can be mitigated. /7 - 2 The recommendation before Council incorporates the objectives stated above into a new agreement by making certain adjustments to the business points and service standards contained in that current agreement, and by establishing a complimentary landfill agreement (see Attachment B). The primary changes to the existing agreement are : 1. Term. The initial term of the Franchise adds five years onto the remaining three-year term of the current agreement for a total of eight years, and would expire on June 30, 2007. The initial term may be extended by Pacific (or City) on the same terms and conditions for an additional eight year term provided that the City Manager reasonably determines that Pacific (a) has satisfactorily performed under the Franchise, (b) is then in full compliance with all Franchise terms, and (c) has the ability to satisfactorily perform its Franchise obligations throughout the 8 year extension. The City may, at its sole discretion, extend the agreement for one additional eight-year term, and one additional term with a minimum of five-years and a maximum of eight years, depending upon the availability of Otay Landfill capacity. 2. Consideration for Grant of Franchise. a. Percentage of Gross Receipts. 1. Franchise Fees: In consideration of City's grant of the Franchise, Pacific shall continue to pay to the City a franchise fee in an amount equal to eight percent (8%) of Pacific's "gross receipts" throughout the term. That continues the current franchise fee that is built into the existing rate. 2. Commencing on July 1,2000, and thereafter, Pacific shall pay the City an additional Franchise Fee of2%. There will be no increase to any of Pacific's Chula Vista ratepayers as a result of this adjustment. Furthermore the 2% increase will not be a factor in calculating future rate adjustments. b. Additional Fixed Annual Payments. As additional consideration for the grant of the Franchise, in addition to the above-described 2% payment, Pacific shall make a payment of$6l8,000 to the City in the first fiscal year of the agreement. That payment to the City will increase annually by three per cent (3%) per year and continue through the term and any extensions of the agreement. As with the 2% franchise fee, these annual payments are not part of the rate structure, there will be no increase to any Pacific Waste Services customers in Chula Vista as a result of the payments and the payments will not be a factor in future rate adjustments. 3. Free Disposal. a. Residential Dwellings and small businesses . Pacific will provide each Chula Vista customer with curbside solid waste and recycling service up to two free annuals passes to the landfill at no additional charge. . Pacific will also provide each Chula Vista customer with yard waste service up to (2) two free green waste passes to the compost facility in addition to their (5) five cans of yard waste per week at no additional charge. b. City Maintenance and Improvement Projects /1- 3 Pacific has also agreed to extend its previous short-term agreement to provide the City with free disposal each year. The disposal is limited to City crews and/or subcontractors on City business for up to 5% of the City's total disposal tonnage for the previous calendar year or approximately 6,500 tons. The existing agreement was for 10% of City's total annual tonnage, but staff accepts the reduction to 5% as it more accurately reflects actual City use over the past two years and is more cognizant of the fact that this renewal is a longer term deal. Free disposal at the landfill can save the City up to $200,000 per year and allows the City to stretch limited maintenance and repair funds on street maintenance, tree trimming costs, facility improvements and other projects that require solid waste disposal and recycling. This benefit is not part of the rate structure, there will be no increase to any Pacific Waste Services customers in Chula Vista as a result of this benefit and this benefit will not be a factor in future rate adjustments. 4. Free Collection and Disposal or Recycling Services a. Pacific will provide all apartment and condominium complexes with free bulky pick-up. Free collection will be arranged through apartment managers or association representatives and will keep discards such as mattresses and appliances off City streets while making disposal of large items easier for Chula Vista residents. Staff believes that Chula Vista multi-family housing owners and residents are the first in San Diego County to receive this service for free. b. City Facilities. Pacific has also agreed to provide the City with free solid waste, yard waste and recycling services at all current and future City facilities during the term of the agreement. That service is expected to save City programs such as libraries, parks, recreation and senior centers, and the animal shelter up to $65,000 per year in costs that will redirect resources from trash fees back into building maintenance and programs. This benefit is not part ofthe rate structure, there will be no increase to any Pacific Waste Services customers in Chula Vista as a result of this benefit and the benefit will not be a factor in future rate adjustments. c. Solid Waste and Recycling Operational Issues. The major adjustments to operational terms and conditions in the current agreement are: . Pacific will begin residential service at 7 a.m. instead of 6 a.m. as soon as the landfill hours are expanded under the new permit or Council approves an automated variable rate program . Pacific will complete the color coding of residential and commercial solid waste recycling and green waste bins by July 1, 2000 . Pacific will increase the recycling education program fund by approximately $25,000 per year . Pacific will make a good faith effort to produce and locally distribute its billing and other correspondence on post-consumer content recycled paper . Pacific will upon replacement convert all supervisor vehicles and on-site power sources to a clean fuel source . Pacific will subscribe to a California Green E source of electricity . Pacific will develop and implement a pilot program to replace collection vehicles with vehicles using a clean fuel source. . Pacific and City staff will develop an "Automated Variable Rate" program for Council review as outlined in Section 6.d of this document that will reduce the monthly rate for approximately 80% of the City's residential and small business customers, provide each customer with a sturdy /1- 4 cart with wheels and lid that will help reduce litter, scavenging and injury to collection personnel. Pacific will further assist the City and Chula Vista businesses to control their solid waste costs and help them meet state mandated recycling goals by providing one of the best business recycling packages and service rates available in California. Pacific will provide: . free rigid bottle and can recycling service for Chula Vista hospitality businesses upon request . free mixed paper service for apartments and condominiums (up to 40% of their current waste) . the lowest rates for mixed paper/cardboard collection in the county for other businesses . Funding for the recycling education program and two employees to promote business recycling and reduce or eliminate recycling theft. The later collection hours, color coding of bins, reduce program costs, recycling education, environmental improvements and other service enhancements are designed to improve ratepayer convenience, value and service levels. The program adjustments will also help provide residents and businesses with the tools to conveniently increase their recycling participation and control or reduce their own solid waste costs in the future. The Municipal Code requires that the prior to approving any renewal of a waste management franchise that the City determines that the franchisee has performed satisfactorily under the franchise. Staff believes that Pacific's performance under the current franchise has been satisfactory for the purpose of renewing such franchise pursuant to the terms and conditions of the new franchise presented by City staff. Council's action to approve the renewal would include Council's finding of satisfactory performance. d. Rates. Chula Vista residential ratepayers and small businesses have had the first or second lowest rate in the County for the past several years. This proposal guarantees that Chula Vista residential ratepayers and small businesses with curbside waste and recycling services will continue to have the lowest contract rate in San Diego County. The proposed adjustments are designed to offer Pacific Waste Services a reasonable increase for legitimate cost increases over the life of the agreement. The proposal also reduces some rates initially, stabilizes the remaining rates in their relative position to other county ratepayers, protects ratepayers against economic inflation with a CPI capped at 66.6% and creates an opportunity for local residents and businesses to receive rate reductions if Pacific ever offers lower rates to other San Diego County franchises. a. In General. Pacific's current residential rates are the lowest in the county. Chula Vista has the best value in total available services and over 1,200 seniors receive a 45% discount on that package of services. As a result of this proposal approximately 650 small business or 40% ofthe total commercial customers in the City will receive a $4.25 per month discount from the $77.75 rate effective July 1, 1999. That new $73.50 rate is approximately $2.50 below the county average. Apartment and condominium operators and associations will also receive a reduction in monthly recycling fees from $1.50 per month per unit to $$0.74 per month per unit for complexes of9 units or less. In addition to reducing those rates, Pacific's annual consumer price index increases for all rates are limited throughout the term of the Franchise as follows: /1- 5 July 1, 1999-July 1,2002 50% of Annual CPI July 1,2003 - Term and any extensions thereof 66.6% of Annual CPI b. Market Adjustments. In addition to receiving only a partial CPI adjustment each year the proposal guarantees that Chula Vista residential ratepayers will continue to have the lowest (contract) rate in the County for years to come. The proposal limits Pacific's future CPI increases at any time residential rates for single family homes, dwellings of four units or less and small businesses with curbside/manual collection, are not at least 10% below the County average for the same service. The proposal also limits major adjustments to rates for large business generators to 95% of the County average. Beginning July 1,2007, and at each 4 year interval thereafter throughout the Franchise term, Pacific shall be eligible for "market adjustment" to its maximum rates, commercial mixed paper rates, and commercial green waste rates. The maximum market adjustment(s) shall be up to 90% of the corresponding San Diego County average rate(s) published by SANDAG. Beginning July 1,2015 the maximum upward adjustment applicable to commercial rates excluding 3-yard bin or smaller/once per week service shall be increased to 95% of the corresponding San Diego County average. The benchmark for small commercial businesses using the 3 cubic yard bin/once per week rate will be the lower 10% below county average. c. Most Favored Nation Clause. If anytime during the term of this agreement Pacific or its affiliates provide a fianchise rate which is lower than the Chula Vista rate to, the ratepayers in San Diego County, or a city within the County, the Chula Vista rate payers shall immediately receive the lower rate. Pacific also guarantees that residential and small businesses with curbside waste and recycling service will always pay the lowest contract rate in San Diego County. d. Variable Rate Structure for Residential/Small Generators. The City and Pacific Waste Services will develop a mutually agreeable rate structure for Small Generator solid waste customers based on volumes of waste generated ("Variable Rate Structure"). The Variable Rate Structure shall, to the extent possible (1) establish new rates that do not increase revenues above the current revenue rate base, (2) give Pacific the benefit of operational efficiencies, and (3) give the City/ratepayers the benefit of avoided disposal net savings. Pacific and City staff will develop and present such a Variable Rate structure by no later than May I, 200 I, and sooner if possible. The final decision to implement a Variable Rate Structure shall be at Council's sole discretion. e. Financial Incentive to Improve Performance The proposed Franchise retains the concept the revenue fiom the sale ofrecyclables shall be shared between the City and Pacfic except that the formula has been simplified. Pacific's annual share of revenue from recycling profits will increase when the state finds that the City has met or exceeded state mandated recycling goals for the previous calendar year. Pacific may also share in avoided disposal revenue and reduce their exposure to financial penalty under the Liquidated Damages Clause (7.b.) if they meet specific performance standards that address customer satisfaction and reward quality of service. J7~ 6 The City's share of avoided disposal revenue, increase in revenues from the sale of recyclables and other savings accrued to the City may be used to improve program service, invest in recycling programs to meet state mandates or be rebated back to ratepayers at the City's discretion. e. Legal Provisions. Miscellaneous legal provisions of the Franchise remain substantially unchanged. The few changes worthy of note are summarized below. a. Uncontrollable Circumstance. The Franchise shall include language that excuses temporary non-performance in the event of an "Uncontrollable Circumstance" (to be defined therein) provided that best efforts are exercised to minimize the duration of such non-performance and to resume full Franchise compliance as quickly as possible. This section clarifies Pacific's responsibility to return to full service as soon as possible, even under the most severe circumstances such as earthquake or flood. It also recognizes Pacific's good faith effort to provide service under such circumstances and provides relief from penalty or termination under conditions that are legitimately beyond their reasonable control. b. Liquidated Damages. The liquidated damages enforcement provisions have been retained from the existing Franchise. These provisions are designed to give Pacific a financial incentive to provide the Chula Vista residents and businesses with the highest possible level of reliable service. The individual and cumulative financial impacts for each occurrence have been reduced, however staff believes the current value ofthe damages or fines are sufficient to encourage quality performance, and the connection to termination for cause remains. c. Mediation. This new section provides both parties with an opportunity to mediate all disputes (excluding the imposition of liquidated damages) prior to commencing legal action. d. Environmental Indemnity Landfill and illegal disposal site costs have become an increasing liability to cities and their generators. This section provides the City and its taxpayers with a significantly greater level of protection from that liability than has been provided in the past. Pacific (and its Affiliates) shall indemnify, defend and hold harmless the City from and against any and all claims, losses, damages, liabilities and costs arising from the past, present or future existence or disposal of Municipal Solid Waste and the hazardous materials it may contain at disposal sites to which Pacific or its Affiliates have taken City solid waste. That coverage shall survive the tenus of this agreement and run with the extended life and maintenance ofthe affected landfills. While it is difficult to place a financial value on this provision, indemnification does provide local taxpayers with insurance against future liability that can translate into potentially exorbitant costs. 8. Site Manager. /1- 7 The City shall have prior reasonable approval with respect to the appointment of the general market manager for San Diego County or the operations manager for San Diego County who shall be responsible for the oversight and implementation of the Franchise. This section of the agreement is designed to assure that the City and the Chula Vista ratepayers continue to benefit from a consistently high quality of management regardless of the mergers and acquisitions that continue to take place in the solid waste industry. 9. No Parking Signs. City staff will submit for City Council consideration, a program for the posting of signs prohibiting parking on streets during trash collection days in new major development areas within the City. City staff, including but not limited to Recycling Rangers, shall support adherence to the program with public education and enforcement measures to be developed and implemented at the City's sole discretion. 10. Other Provisions. The Franchise contains additional provisions that are consistent with the above terms and the current levels of performance and standards required in the current agreement. Landfill Agreement Staff is also asking for City Council approval of the Landfill Agreement Pacific/Allied has made a condition to their agreement to sign the Franchise on the terms prepared. The Landfill Agreement provides long-term disposal, stabilizes disposal costs, provides indemnification from landfill liability and addresses local impacts. A summary is attached as Exhibit B. Specifics of the mitigation measures are currently being finalized. The final agreement and a more detailed report will be presented on June 29, 1999. The request before council currently is merely for conceptual approval. The Competitive Bid Alternative Staff would need at least six months to develop at least one, and perhaps two packages to duplicate the proposal currently before Council. One ofthe proposals would address solid waste and recycling collection, as well as processing services. The other would address long-term disposal, stable disposal rates and indemnification from landfill liability. The cost for a consultant to assist with the development and an independent review typically costs between $30,000 and $50,000. The successful respondent(s) would need a year to order vehicles, develop an operational plan, a routing scheme and obtain processing, marketing and related support services. The disposal contract respondents mayor may not need time to develop transfer vehicle and facility arrangements. The primary goal of a competitive bid is to obtain the best rate for local ratepayers. Typically, a complimentary objective of the competitive process is to assure the public that the process was developed in a manner that produced the best rate the market has to offer at that time. One of the most important factors in considering a competitive bid process is assessing the current market place. Five years ago San Diego County had six major companies providing services to (18) ftanchisedjurisdictions. Today, largely due to the continuing cycle of mergers and acquisitions in the solid waste industry we have three companies serving the same eighteen jurisdictions with two of those companies holding sixteen franchises. Chula Vista and the rest of San Diego county's franchise cities only have two alternate bidders competing in the local market place. Our ability to 11-8 implement a successful bid process would be highly dependent on attracting new service providers to San Diego to make competitive bids. The ability to attract competitive bidders in a public solid waste process is as important if not more important than actually implementing a competitive process. Even when an adequate number of competitive bidders respond, it does not guarantee that the process will produce the intended result, lower rates and better service. Poway and Imperial Beach are the only cities in San Diego County that have ever gone to bid. Poway's residential rate as of July 1, 1999 will be $15.13; Chula Vista's is $13.37. Imperial Beach has just completed their competitive bid process this month and their rates now range uom $14.40 for 30-gallon containers, $14.54 for a 64-gallon container, to $14.96 for a 90-gallon container. Chula Vista's rate remains $13.37 for unlimited service. Under the proposal before Council, Chula Vista's commercial rate for a 3 cubic yard bin collected once a week will be reduced to $73.50 per month. The same service in Poway and Imperial Beach under their new rates will be $83.09 and $79.96 respectively. Additionally, the Chula Vista service includes at least one free 3 cubic yard bin for mixed paper and uee bulky pick-up for all apartments and condominiums and free bottle and can collection for restaurants and other hospitality businesses. Chula Vista has negotiated a better price and a better value for its ratepayers by using the right to go to bid as one tool in the negotiating process. Additional Reasons to Extend the Existing Franchise in Lieu of Waiting to the End of the Agreement in September 4. 2002 to Go Out to Bid . Unique opportunity to take advantage of franchise and private landfill owned by an affiliate . The landfill operators need our solid waste and are trying to do the right things environmentally at the landfill in exchange for a solid waste commitment . City has negotiated a below market deal . Staff anticipates further consolidation that will produce even less qualified bidders in 2002 . By waiting until 2002 the City and residents give up: lower rates, lowest rate guarantees, improved City recycling services, general fund savings, increased recycling education funding, enhanced business services, park land donation, a donation of up to 4 million dollars in park development funds, and the only guaranteed landfill mitigation measures. . Recent bids have produced: reduced recycling programs, less service options and less revenue to their City's at higher rates and no rate stability. FISCAL IMP ACT: There will be no cost to the general fund as a result of Council's approval ofthe Ordinance as to first reading and conceptual approval of the landfill agreement. If after having reviewed and considered the full proposal, Council elects to approve the Ordinance and adopt the Resolution on June 29, 1999 it will have the following financial impacts: The rates for the average small business in Chula Vista will be reduced from approximately $77.00 to $73.50 per month. Residential and other small generator rates will be limited to an annual CPI increase of nor greater than 66.6% and shall at no time be greater than 90% ofthe San Diego County average for similar rates. City residential and small business curbside rates will be guaranteed to be the lowest contract rates in the county throughout the term of the agreement. The City General fund will save an estimated $75,000 per year in disposal and recycling costs and will receive an estimated $825,000 in additional revenue in the next fiscal year. PWS.ß.6-22 /1- 9 EXHIBIT A AMENDED AND RESTATED SOLID WASTE DISPOSAL AND RECYCLING FRANCHISE AGREEMENT This AMENDED AND RESTATED SOLID WASTE DISPOSAL AND RECYCLING FRANCHISE AGREEMENT ("Franchise") is entered into effective as of , 1999 by and between the CITY OF CHULA VISTA, a chartered municipal corporation of the State of California ("City") and ALLIED WASTE NORTH AMERICA, INC., a Delaware corporation, dba PACIFIC WASTE SERVICES ("Pacific"), with reference to the following facts: A. City is a chartered city within the meaning of California Constitution Article 11, Sections 3 and 5 and has reserved its powers pursuant to California Public Resources Code Section 40000 et seq. to grant an exclusive Solid Waste and Recycling franchise. B. In 1982, pursuant to Article XII of the City Charter and Chapter 8.24 of the Chula vista Municipal Code, City granted a Solid Waste disposal franchise ("Original Franchise") to Chula Vista Sanitary Service ("CVSS"). C. Since 1982, the Original Franchise has been amended as follows: (1) Ordinance No. 2104, adopted February 28, 1985; (2) Ordinance No. 2332, adopted September 12, 1989; (3) Ordinance No. 2427, adopted December 4, 1990; (4) Ordinance No. 2429, adopted December 11, 1990; (5) Ordinance No. 2475, adopted September 3, 1991; (6) Ordinance No. 2562, adopted July 20 1993; and (7) Ordinance No. 2569, adopted September 21, 1993. D. On May 12, 1987, pursuant to City Council Resolution No. 13019, City approved an assignment of the Original Franchise to Laidlaw Waste Systems, Inc. ("Laidlaw"). E. On June 17, 1997, pursuant to City Council Resolution No. 18705, City conditionally approved Laidlaw's assignment of the Original Franchise, as amended, to Pacific. One of the conditions of approval was that Pacific enter into negotiations with City staff regarding various City issues with the franchise prior to September, 1997 when City was scheduled to consider Pacific's request for a five-year renewal. F. On August 26, 1997, pursuant to City Council Resolution No. 18763, City approved a month to month extension of the Original Franchise pending further City review and consideration of Pacific's requested five year renewal. G. On July 14, 1998, pursuant to City Council Resolution No. 19074, City approved a resolution of intention to consider the renewal of the Original Franchise pursuant to the terms and conditions set forth in that certain Solid Waste Disposal and Recycling Franchise Agreement between City and Pacific dated September 4, 1998 ("Renewed Franchise") and set a public hearing for such purpose for August 4, 1998 at 6:00 p.m. "DOCNUM' /7 - ) Ò H. On August 4, 1998, a duly noticed public hearing was held on the Renewed Franchise, and all public testimony was reviewed and considered by the City Council. 1. On August 11, 1998, pursuant to its adoption of Ordinance No. 2741 and Pacific's written acceptance thereof, City granted, and Pacific accepted the Renewed Franchise on the terms and conditions set forth herein. J. On June 8, 1999, pursuant to City Council Resolution No. , City approved a resolution of intention to consider the extension and modification the Renewed Franchise pursuant to the terms and conditions set forth in this Franchise and set a public hearing for such purpose for June 22, 1999 at 6:00 p.m. K. On June 22, 1999, a duly noticed public hearing was held on this Franchise, and all public testimony was reviewed and considered by the City Council. L. On , 1999, pursuant to its adoption of Ordinance No. ("City Adoption Date") and Pacific's written acceptance thereof, City granted, and Pacific accepted this Franchise on the terms and conditions set forth herein. NOW, THEREFORE, in consideration of the above recitals, the covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, City and Pacific hereby agree as follows: 1. Definitions. Whenever in this Franchise the words or phrases hereinafter in this section defined are used, either with initial caps or small case lettering, they shall have the respective meaning assigned to them in the following definitions (unless in the given instance, the context wherein they are used shall clearly indicate a different meaning): 1.1 "Affiliate" means any parent or subsidiary corporation, partnership or other entity, or any fellow member of an association, joint venture or similar arrangement for the provision of Solid Waste disposal or Recycling services in which Pacific holds a direct or indirect interest. 1.2 "Aluminum" means recoverable materials made from aluminum such as used aluminum food or beverage containers, aluminum foil, siding, screening, and other items manufactured from aluminum. 1.3 "Applicable Law" means any federal, State or local rule, regulation, requirement, guideline, permit, action, determination or order of any Governmental Body having any jurisdiction applicable to the subject matter of this Franchise, as now in effect and as amended from time to time. Applicable Law shall include, without limitation, "OOONUM" /1-// ~ the City Charter, and Municipal Code. 1.4 "Bin" shall mean those plastic or metal containers of one cubic yard (202 gallons) to eight cubic yards that have plastic lids on the top (unless metal lids are designated by the City Manager). Bins are used for weekly or more frequent Collection of Solid Waste, Yard Waste or Designated Recyclables by City or Pacific. 1.5 "Bulky Waste" means discarded items whose large size or shape precludes or complicates their handling by standard Residential or Commercial Solid Waste, Recycling and Green Waste Collection methods. Bulky items include White Goods, furniture, large auto parts, trees, stumps, carpet and other potentially oversize wastes. Bulky Waste does not include hazardous or infectious waste unless specifically exempt such as Freon containing refrigerators. 1.6 "Cardboard" means post-consumer waste paper grade corrugated cardboard (grade #11), kraft (brown) paper bags, or solid fiber boxes which have served their packaging purposes and are discarded and can later be reclaimed for Collection and recovery for Recycling. 1.7 "Carts" shall mean those plastic containers with a capacity of less than 202 gallons (one cubic yard). Carts shall have a fixed lid and are designed for automated and/or semi-automated Collection of Solid Waste, Yard Waste and/or Designated Recyclables by City or Pacific. 1.8 "Change in Law" means any of the following events or conditions occurring on or after the date hereof: (a) the enactment, adoption, promulgation, issuance, material modification or written change in and Applicable Law or administrative or judicial interpretation of any Applicable Law; or (b) the order or judgment of any Governmental Body with jurisdiction over the Solid Waste that applies to this Franchise, to the extent such order or judgment is not the result of willful or negligent action, error or omission or lack of reasonable diligence of City or Pacific, whichever is asserting the occurrence of a Change in Law; provided, however, that the contesting in good faith or the failure in good faith to contest any such order or judgment shall not constitute or be construed as such a willful or negligent action, error or omission or lack of reasonable diligence. 1.9 "City" shall mean the City of Chula Vista, a municipal corporation of the State of California in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form. 'DOCNUM' -3- j7~/{)o 1.10 "Collection" means the act of removing and conveying non- hazardous and non-infectious Solid Waste, Yard Waste, Recyclables, co-mingled or source separated materials, from Residential, Commercial, Industrial, or Institutional (governmental) Generators, to a facility for Processing, composting, transfer, disposal or transformation. 1.11 "Commercial" means a site and/or business zoned or permitted for any use other than Residential including but not limited to Commercial, light Industrial, Industrial and agricultural. 1.12 "Compactor Containers" means those fully enclosed metal containers of any size (approximately seven to twenty cubic yards) provided by City's hauler or customer. Compactors typically serve Large Quantity Multi-family Generators. 1.13 "Curbside Collection" means the service of removing and conveying of non-hazardous and non-infectious Solid Waste, source separated Recyclables, Green Waste, Newspaper (ONP) , Mixed Paper (MP), corrugated Cardboard (OCC) , steel, Tin and Bi-metal Cans, metal coat hangers, glass food and beverage containers, #1 and #2 plastic containers, used oil and used oil filters from the public thoroughfare at the curb or alley. (City shall make the final determination regarding eligibility for Curbside Collection which shall generally apply to Small Quantity Generators.) 1.14 "Designated Containers" ( "Containers") shall mean those containers designated by the City Manager for temporary Storage and Collection of Solid Waste or Designated Recyclables including but not limited to "Recycling Boxes, Carts, Bins, Roll-off Boxes, and or Compactor Containers. 1.15 "Designated Recyclables" means those materials designated by the City Manager for recovery or reuse through this Franchise. The list currently includes: Newspaper (ONP) , Mixed Paper (MP), corrugated Cardboard (OCC) , steel, Tin and Bi-metal Cans, metal coat hangers, Aluminum containers, White Goods, glass food and beverage containers, #1 and #2 plastic containers, used oil, used oil filters, concrete and asphalt. 1.16 "Designated Solid Waste and Recycling Collection or Storage Location" means a place designated by the City Manager for Storage and/or Collection of Solid Waste, Green Waste and/or Recyclables pursuant to Section 8.24.100 of the Chula Vista Municipal Code. Designated locations include, but are not limited to, the curb, alley, waste/Recycling enclosure, a loading dock, or basement of a Commercial enterprise or Multi-family complex where Solid Waste and Recyclables are placed for Collection or temporary Storage prior to Collection by Pacific. ^DOCNUM^ ;1/5-4- 1.17 "Franchised Recyclables" means any Residential, Commercial or Industrial Recyclables, as defined herein, by Municipal Code Chapter 8.25, placed in designated Recycling containers or at designated Recycling Solid Waste and Recycling Collection or Storage Location(s) to be collected by Pacific. 1.18 "Garbage" means all non-hazardous, non-infectious organic waste including: kitchen and table waste, and animal or vegetable waste that attends or results from the storage, preparation, cooking, or handling of food stuffs, except organic wastes separated therefrom and used in composting in accordance with Chula Vista Municipal Code Chapter 8.25, Section 8.35.090. 1.19 "General Services" means those services provided to Small Quantity Generators, Large Quantity Generators and Industrial Generators excluding Miscellaneous Equipment and Service Rates or Option Services as listed on Exhibit G of this Agreement. 1. 20 "Generator" means every owner, tenant, occupant or person owning or having the care and control of any premises in the City including the temporary use of parks, open space or a public thoroughfare. 1. 21 "Glass Bottles and Jars" means food and beverage containers made from silica or sand, soda ash and limestone, the product being transparent or translucent and being used for packaging or bottling, including container glass designated redeemable under the California Beverage Container Recycling and Litter Reduction Law, Division 12.1 (commencing with Section 14500) of the California Public Resources Code), as well as glass jars and bottles without redeemable value ("scrap"), but excluding household, kitchen, and other sources of non-container glass such as drinking glasses, ceramics, light bulbs, window pane glass, and similar glass products that are not bottles or jars. 1. 22 "Governmental Body" means any Federal, State, County, City or regional legislative, executive, judicial or other governmental board, agency, authority, commission, administration, court or other body, or any officer thereof acting within the scope of his or her authority. 1. 23 "Green Wastes" means the leaves, grass, weeds, shrubs, tree branches, tree trunk and other wood materials from trees. Green Waste may also include pre-consumer food waste, incidental amounts of waxed or plastic coated corrugated Cardboard, unpainted and untreated lumber. Green Waste does not include tree stumps in excess of 100 pounds, more than incidental dirt or rock, plastic, glass, metal, painted or treated lumber, plywood, particle board or other manufactured products that contain glue, 'DOCNUM' )111 -5- formaldehyde, non-organic or nonbiodegradable materials. 1. 24 "Gross Receipts" shall mean all gross operating revenues received by Pacific from Rates charged to Generators under this Franchise(for collecting, removing, transporting, Processing and/or disposing Solid Waste and Recyclables, composting and related services. Excluding: a) Franchise Fees, b) AB 939 Fees, c) Household Hazardous Waste Fees d)any other City imposed fees, taxes, or surcharges, (except fees, taxes or surcharges of general application), e)revenue generated from the sale of Recyclables collected under this Franchise, and f) revenue generated from the sale or lease of storage containers and la-val locks. 1. 25 "Hazardous or Toxic Waste" means any material, waste, chemical, compound, substance, mixture, or byproduct that is identified, defined, designated, listed, restricted or otherwise regulated under Applicable Laws as "hazardous constituent," "hazardous substance," "hazardous waste constituent," "infectious waste," "medical waste," "bio- hazardous waste," "extremely hazardous waste," pollutant," "toxic pollutant," "chemical constituent," "solid waste," or "contaminant, " or any other formulation intended to classify substances by reason of properties that are deleterious to the environment, natural resources or public health or safety including without limitation, ignitability, infectiousness, corrosiveness, radioactivity, carcinogenicity, toxicity, and reproductive toxicity. Without limiting the generality of the foregoing, Hazardous or Toxic Waste shall include any form of natural gas, as well as any petroleum products or any fraction thereof, and any substance that, due to its characteristics or interaction with one or more other materials, wastes, chemicals, compounds, substances, mixtures, or by products, damages or threatens to damage the environment, natural resources, or public health or safety, or is required by any law or public entity to be remediated, including remediations which such law or public entity requires in order for real property to be put to any lawful purpose. 1. 26 "Hospitality" means any establishment that offers dining services, food or beverage sales. This includes taverns, bars, cafeterias, and restaurants, as well as, motels and hotels (temporary housing of less than one month duration), hospitals, schools, colleges, and other such establishments that have dining services, or a restaurant or bar on their premises. 1. 27 "Industrial" means any property or Generator that is engaged in the manufacture of products including but not limited to construction and demolition. Industrial Generators are typically serviced by Roll-off Boxes of 10-40 yard capacities and typically generate Inert materials such as asphalt, concrete, building debris and some wood and dry Gree~Waste. ^DOCN1JM^ } 1-/6 -6- 1. 28 "Industrial Recyclables" means Recyclables from Industrial, construction, and demolition operations, including, but not limited to, asphalt, concrete, dirt, land clearing brush, sand and rock. 1. 29 "Inert" means materials such as concrete, soil, asphalt, ceramics, earthen cooking ware, automotive safety glass, and mirrors. 1. 30 "Institutional" shall mean any premise owned and/or occupied by local, State and federal agencies, typically office or education facilities with a common waste stream. 1. 31 "Landfill" means a disposal system by which Solid Waste is deposited in a specially prepared area which provides for environmental monitoring and treatment pursuant to the California Code of Regulations, the California Public Resources Code and the Federal Resource Conservation and Recovery Act. 1. 32 "Large Quantity Generator" means those Residential, Commercial, Industrial and Institutional entities that generate more than four (4) ninety-six (96) Carts of waste per week excluding source separated Recyclables diverted from disposal or transformation. 1. 33 "Large Quantity Multi-family Generator" means Generators in Multi-family complexes of 10 or more Units. 1. 34 "Mixed Paper" means corrugated Cardboard, all high and low grade ledger and other fibers not contaminated by food waste or other materials that render them unmarketable. 1. 35 "Mixed Waste Processing" means a system of recovering Recyclables from the mixed waste stream through separation at a Processing facility, transfer station, Landfill, or other such facility instead of separation at the primary waste generation source. 1. 36 "Multi-family" means a structure or structures containing a total of 4 or more dwelling Units in any vertical or horizontal arrangement on a single lot or building site. 1. 37 "Newspaper" means newsprint-grade paper including any inserts that come in the paper, and excluding soiled paper, all magazines, and other periodicals, telephone books, as well as all other paper products of any nature. 1. 38 "Nuisance" means anything which is injurious to human health, or is indecent or offensive to the senses, and interferes with the comfortable enjoyment of life or property, and affects at the same time an entire community or neighborhood, or any number of persons, although the extent of annoyance or damage inflicted upon the individual may be unequal, and which occurs as a result of "OOCNUM" ) 7//& -7- the storage, removal, transport, processing, or disposal of solid Waste, compost and/or designated recyclables. 1. 39 "Plastic Bottle" means a plastic container with narrow neck or mouth opening smaller than the diameter of the container body, used for containing milk, juice, soft drinks, water, detergent, shampoo or other such substances intended for household or Hospitality use; to distinguish from non-bottle containers (e.g., deli or margarine tub containers) and from non-household plastic bottles such as those for containing motor oil, solvents, and other non-household substances. 1. 40 "Processing" means the reduction, separation, recovery, conversion, or Recycling of any component(s) of Solid Waste. 1. 41 "putrescible Wastes" means the waste in organic material with the potential decomposition capacity to emit noticeable quantities of odor and gas by-products. Material in this category includes, but is not limited to kitchen waste, dead animals, food from containers, etc., except organic wastes separated therefrom and used in composting. 1.42 "Recyclables" means any materials that are recyclable, reclaimable, and/or reusable within the following generating categories: Small Quantity Generator and Large Quantity Generator. Any material having an economic value on the secondary materials market or that is otherwise Salvageable shall be included and/or other materials that have been separated from other Small Quantity Generators or Large Quantity Generators for the purposes of being recycled for resale and/or reuse, and placed at a Designated Solid Waste and Recycling Collection or Storage Location or in a Recycling or waste container for the purpose of Collection and Processing, or any such designated recyclable materials collected under a Mixed Waste Processing program. 1. 43 "Recycling" shall mean any process by which materials which would otherwise be discarded, deposited in a Landfill or transformation facility and become Solid Waste are collected (source separated, commingled, or as "Mixed Waste"), separated and/or processed and returned to the economic mainstream in the form of raw materials or products or materials which are otherwise salvaged or recovered for reuse. 1. 44 "Recycling Box" shall mean those containers with a capacity of 18 gallons to 32 gallons which are supplied by City or Pacific for manual Collection of Designated Recyclables. 1.45 "Refuse" means Garbage and Rubbish. 'DOCNUM^ -8- /1-// 1. 46 "Removal" means the act of taking Solid Wastes or Designated Recyclables from the place of generation either by the Pacific or by a person in control of the premises. 1. 47 "Removal Frequency" means frequency of Removal of Solid Wastes or Recyclables from the place of generation. 1. 48 "Residential" for purposes of this Franchise, means any building or portion thereof designed or used exclusively as the residence or sleeping place of one or more persons, including single and multiple family dwellings, apartment- hotels, boarding and lodging houses. Residential does not include short-term Residential uses, such as motels, tourist cabins, or hostels which are regulated as Hospitality establishments. 1.49 "Roll-off Boxes" means those 10 to 40 cubic yard steel temporary containers with an open top and doors at least at one end typically used for temporary service to remove and convey non-putrescible, inert (concrete, asphalt, other demolition debris) Solid Wastes and Recyclables or Green Waste. 1. 50 "Roll-off Service" means service provided for the Collection, Removal and Disposal of Industrial waste such as construction, demolition and other primarily Inert non-putrescible Wastes and Green Wastes. Roll-off Service is usually provided using metal containers of 10 to 40 cubic yards that are open on the top with doors on one end. 1. 51 "Rubbish" means non-Putrescible Solid Wastes such as ashes, paper, glass, bedding, crockery, plastics, rubber by-products or litter. Such materials that are designated as recyclable or compost may be exempt from categorizing as Rubbish provided such materials are handled, processed and maintained in a properly regulated manner. 1. 52 "Salvaging or Salvageable" means the controlled and/or authorized Storage and Removal of Solid Waste, Designated Recyclables or recoverable materials. 1. 53 "Scavenging" means the uncontrolled and/or unauthorized Removal of Solid Waste, Designated Recyclables or recoverable materials. Such activity is unlawful and is a misdemeanor punishable by up to six months in jail and $1,000 in civil penalties under section 8.24.200, 8.25.080 of the Chula Vista Municipal Code and Chapter 9 Section 41950 of the California Integrated Waste Management Act of 1989. 1. 54 "Small Quantity Generator" means all Residential dwellings of four units or less (without restriction on the amount of waste generated by such dwellings) and all Commercial, Industrial and Institutional entities that generate an amount equal to or less than four (4) ninety-six (96) -DQCNUM^ J 1-/! -9- gallons Carts of waste per week excluding source separated Recyclables diverted from Disposal or transformation. 1. 55 "Small Quantity Multi-family Generator" means Generators in Residential dwellings of 9 Units or less. 1. 56 "Solid Waste" means all putrescible and non-putrescible solid waste, semi-solid and liquid wastes, such as Refuse, Garbage, Rubbish, ashes, Industrial wastes, demolition and construction wastes, abandoned vehicles and parts thereof, discarded home and Industrial appliances, manure, vegetable or animal solid and semi-solid wastes, and includes liquid wastes disposed of in conjunction with Solid Wastes at Solid Waste Transfer or Processing Stations or disposal sites, which are generated by Residential, Commercial or Industrial sites within the City. Solid Waste shall not include: Hazardous and Infectious Waste, sewage collected and treated in a municipal or regional sewage system or materials or substances having commercial value or other importance which can be salvaged for reuse, Recycling, composting or resale. 1. 57 "State" shall mean the State of California. 1. 58 "Storage" means the interim containment of Solid Wastes, Yard Wastes, or Recyclables in an approved manner after generation and prior to Disposal, Collection or Processing. (Interim means for one week or less, Roll-off containers may store non-Putrescible waste for up to thirty days.) 1. 59 "Streets and Byways" shall mean the public streets, ways, alleys and places as the same now or may hereafter exist within said City, including State highways now or hereafter established within said City. 1. 60 "Tin and Bi-metal Cans" means any steel food and beverage containers with a tin or Aluminum plating. 1. 61 "Transfer or Processing Station" means those facilities utilized to receive Solid Wastes and to temporarily store, separate, convert, or otherwise process the Solid Waste and/or Recyclables. 1. 62 "Uncontrollable Circumstances" means any of the following acts, events or conditions, if such act, event or condition is beyond the reasonable control and is not also the result of the willful or negligent act, error or omission or failure to exercise reasonable diligence on the part of the party relying thereon as a justification for not performing an obligation or complying with any condition required by such party under this Franchise: (a) an act of God (but not including reasonably anticipated weather conditions for the geographic area of the 'DOCNUM' -10- 17-/1 City), hurricane, landslide, lightning, earthquake, fire, explosion, flood, sabotage or similar occurrence, acts of a public enemy, extortion, war, blockade or insurrection, riot or civil disturbance; (b) strikes or work stoppages occurring with respect to any activity performed or to be performed under this Franchise; and (c) pre-emption of materials or services by a Governmental Body in connection with a public emergency or any condemnation or other taking by eminent domain. It is specifically understood that none of the following acts or conditions shall constitute uncontrollable Circumstances: (a) general economic conditions, interest or inflation rates, currency fluctuations or changes in the cost or availability of commodities, supplies or equipment; (b) changes in the financial condition of City, Pacific or any subcontractor affecting their ability to perform their obligations; (c) the consequences of errors, neglect or omissions by City, Pacific or any subcontractor; (d) any failure of any subcontractor to furnish labor, materials, service or equipment for any reason (other than an Uncontrollable Circumstance); (e) equipment failure; and (f) any impact of minimum wage law, prevailing wage law, customs or practices on Pacific's or City's operating costs. 1. 63 "Unit" means an individual residence contained in a Residential Multi-family complex. 1. 64 "White Goods" means kitchen or other large enameled appliances which includes, but is not limited to, refrigerators, washers, and dryers. 1. 65 "Wood Waste" means lumber and wood products but excludes tree stumps in excess of 100 pounds, more than incidental dirt or rock, plastic, glass, metal, painted or treated wood, plywood, particle board or other manufactured products that contain glue, formaldehyde, non-organic or non-biodegradable materials. 1. 66 "Yard Waste" means the leaves, grass, weeds, and wood materials from trees and shrubs from the single family and Multi-family Residential sources of City's Green Waste (to include landscape haulings from Residential sources). Acceptable materials for Collection include all Yard Waste as herein defined, excluding treated or processed wood or lumber, Bulky Waste or any other materials as shall be determined by City as to not be Salvageable. All acceptable Yard Waste shall be void of nails, wire, rocks, dirt or any other material that is not considered Yard Waste. Roll-off Box loads containing 50% or more palm fronds may be delivered to and used by the Otay Landfill as alternative daily cover. 'DOCNUM^ /1~j) -11- 2. Grant of Franchise. 2.1 In General. City hereby grants to Pacific, subject to the terms and conditions set forth herein, an exclusive Franchise ("Franchise") to collect and dispose of, for a fee, Solid Waste and Franchised Recyclables from Residential, Commercial and Industrial sites within the City, in the manner and on the terms specified herein, and to use for such purposes the City Streets and Byways. This Franchise is granted pursuant to the authority and subject to the terms and conditions contained in Article XII, Sections 1200 through 1206 of the City Charter, and Chapter 8.23 of the Chula Vista Municipal Code. This Franchise is granted upon each and every condition herein contained, and shall be strictly in accordance with Applicable Law. Each of said conditions is a material and essential condition to the granting of this Franchise. Nothing shall pass by the Franchise granted hereby to Pacific unless it be granted in plain and unambiguous terms. The parties acknowledge and agree that in the event of a dispute over the interpretation of this Franchise, if the term in dispute is ambiguous and susceptible of two meanings such term shall be construed liberally in favor of the public in accordance with Applicable Law. 2.2 Exclusive Nature of Franchise. 2.2.1 During the Term of this Franchise, except as hereinafter otherwise provided, or except as may otherwise be required by federal or State law, the rights granted to Pacific under this Franchise shall be exclusive to Pacific, and City will not let any contract to, or enter into any contract with, any other person, firm, or corporation for the performance of the services herein required to be performed by Pacific. City shall protect Pacific's rights to such exclusive contract by proper ordinances, and by reasonable enforcement thereof. 2.2.2 Such exclusive rights shall not extend to Solid Waste or Recycling Services that cannot be exclusively franchised under federal or State law. In addition, this grant of exclusive Franchise is not intended and does not preclude duly licensed City based non-profit organizations and community groups from conducting Recycling programs for the purpose of raising funds, nor does it preclude a person from selling or otherwise disposing of their own Recyclables at a buy-back center or from donating their own Recyclables, so long as said collection(s) , donation(s) or sale(s) do not occur at Designated Solid Waste and Recycling Collection or Storage Location(s). Pacific and City hereby expressly exclude from Pacific's exclusive rights hereunder the picking up, gathering, and Removal of Refuse pursuant to competitively bid contracts between State agencies or local districts and a City authorized City trash franchisee. 3. Term. 3.1 Initial Term. The initial Franchise term ("Initial ^DOCNUM^ /1-;); --12- Term") shall commence on July 1, 1999 and shall terminate on June 30, 2007, unless earlier terminated in accordance with the provisions hereof. 3.2 Extension of Initial Term bv City or Pacific. Pacific shall have the option to extend the Initial Term for another eight (8) year period ("Extended Term"), on the same terms and conditions or such other terms and conditions as may be agreed upon by City and Pacific, provided the City Manager reasonably determines that Pacific has satisfactorily performed under and is in full compliance with this Franchise and Applicable Law and has the ability to perform its obligations under this Franchise during the Extended Term. Pacific shall notify City in writing as to whether Pacific intends to exercise its option to extend the Initial Term at least one hundred eighty (180) days prior to the end of the Initial Term. If, for whatever reason, Pacific elects not to exercise such option, City may extend this Franchise for the Extended Term on the same terms and conditions, in City's sole discretion, by written notice to Pacific within sixty (60) days of City's receipt of notice of Pacific's intention. 3.3 Extensions of Extended Term by City. City shall have two (2) additional options to extend the Extended Term, each for an eight (8) year period on the same terms and conditions or, if City agrees in its sole discretion, such other terms and conditions as may be agreed upon by City and Pacific; provided, however, Pacific may terminate this Franchise when the Otay Landfill reaches full capacity by providing at three hundred and sixty-five (365) days prior notice, so long as the termination is not effective until after June 30, 2028. Such options may be exercised in City's sole discretion by providing Pacific notice of its intention to extend the Term at least one hundred eighty (180) days prior to the end of the applicable Term. The Initial Term, the Extended Term and any future extensions thereof shall collectively be referred to herein as the "Term". )1~' 'DOCNUM^ -13- 4. Consideration. 4.1 Franchise Fee. 4.1.1 In consideration of City's grant of this Franchise, Pacific shall pay to City during the first year of this Franchise an amount equal to eight percent (8%) of Pacific's Gross Receipts ("Franchise Fee"). Commencing on July 1, 2000, and thereafter, the Franchise Fee shall be increased to ten percent (10%) of Pacific's Gross Receipts. City shall have the right to decrease the Franchise Fee at any time by resolution of the City Council (and subsequently require Pacific to reduce General Service Rates a corresponding amount). Pacific shall not materially change its Collection or Processing methods or the terms and conditions of its existing contracts in such a way as to adversely affect the Franchise Fees to be paid to City, nor shall it enter into any new contracts that would have such effect without City's prior written approval. Two percent (2%) of the total of ten percent (10%) of Gross Revenues which constitute Franchise Fees shall not be passed through to Ratepayers. It is understood that any increase imposed by City shall be cause for Pacific to increase Rates in order to immediately "pass through" the cost to Ratepayers. 4.1. 2 Pacific shall file with the director of finance of City on a monthly basis, a duly verified statement showing in detail the total Gross Receipts of Pacific during the preceding month or fractional month from the Collection and disposal of Solid Waste and Franchised Recyclables within the City. Pacific shall pay to City within fifteen (15) days after the time of filing of such statement, in lawful money of the United States, the aforesaid percentage of its total Gross Receipts for such month, or such fractional month, covered by such statement, plus any and all City imposed fees collected by Pacific pursuant to Section 6,2.17 hereof. 4.1. 3 The acceptance by City of payments of the Franchise Fee shall be without prejudice to City's right to an examination of Pacific's books and records maintained with respect to the calculation thereof in order to verify the amount of Pacific's Gross Receipts. At any reasonable time within three years after receipt of any statement furnished it by Pacific as provided in Section 4.1.2, above, and upon fifteen (15) days prior written notice to Pacific, City may cause a special audit to be made of those books and records of Pacific (i) relating to the calculation of City's Franchise Fee for the period covered by the statement, relating to (ii) the Net Revenue generated from the sale of Recyclables and (iii) as are reasonably necessary to verify Pacific's compliance with its performance obligations hereunder. Except as provided below, the cost of such audit shall be borne by City. If it shall be determined that there has been an error in the payment of the Franchise Fee, then a reconciling payment or credit shall be made. If it is determined that the error exceeded three percent (3%) of the amount owed for the period covered by the audit, and such error is to the disadvantage of City, then Pacific shall also reimburse City for 'DOCNOM' /J;514- the cost of the audit. City shall keep all information received from Pacific in connection with any audit hereunder confidential, and shall not disclose or use any such information without the prior written consent of Pacific, except to the extent required under Applicable Law or in connection with any dispute resolution proceeding with respect to this Franchise. 4.2 Siqninq Bonus. In further consideration of City's grant of the Franchise, Pacific shall pay to City a signing bonus equal to $818,000 ("Signing Bonus"), which bonus shall be payable as follows: (i) $218,000 shall be payable in full on July 30, 1999; (ii) $300,000 shall be payable on January 1, 2000 and (iii) the balance shall be payable in equal monthly installments of $50,000 each, beginning on January 15, 2000 and continuing on the fifteenth day of each month thereafter until June 15, 2000. 4.3 Annual Bonus. In further consideration of City's grant of this Franchise, Pacific shall pay to City during the Term an annual bonus ("Annual Bonus"). The Annual Bonus shall be payable commencing July 15, 2000, and on each July 15 thereafter for the remainder of the Term, in annual lump sum installments in the amounts set forth in Exhibit A attached hereto. 4.4 Free Disposal for Citv Business. 4.4.1 Commencing as of July 1, 1999 and for the remainder of the Term, City and City designated contractors on City business shall not be charged tipping fees for Solid Waste delivered by City or its agent to the Otay Landfill. Such exemption from tipping fees shall include an exemption from processing fees that would otherwise be assessed with respect to Green Waste delivered to Organic Recycling West ("ORW"). Notwithstanding the foregoing, tipping fees will be charged to City under this section if the tonnage deposited in the Otay Landfill in anyone calendar year exceeds an amount equal to five percent (5%) of the total tonnage of Solid Waste deposited in the Otay Landfill from all City Generators in the preceding twelve- month period, but such charges shall only apply to the tonnage that exceeds the limit. City shall provide advance notice to Pacific of City crews and City contractors for whom City may be entitled to a credit hereunder. City shall submit its requests for free disposal from sub-contractors that qualify for free disposal to Pacific by providing on City letterhead the name of the company delivering the Solid Waste, the vehicle license number(s) , the date or time period of delivery and an estimate of the total tonnage or number of vehicle loads. Pacific shall file monthly reports with City to verify appropriate use of free disposal at Pacific facilities. 4.4.2 Free Citv Service. Pacific shall provide City with free Solid Waste, Yard Waste and Recycling Collection, Removal, Processing and disposal services at all City facilities during the term of this Franchise. City shall pay for Roll-off Service (or similar temporary services) requested by City. Only the disposal tonnage for Roll-off Service and other temporary services requested by City shall accrue against the annual 5% °DOCNUMO Jf~/-15- City disposal allowance described in Section 4.4.1. Roll-off Service shall accrue based on actual weight per load. Temporary services shall accrue at a rate of 100 lbs. per loose cubic yard times the frequency of pickup. 4.5 City Desiqnation as "State Curbside Operator". Throughout the Term of this Franchise, Pacific shall maintain City's designation as "State Curbside Operator" with the Department of Conservation, Division of Recycling, for the purposes of all California Redemption Value ("CRV") materials collected in Chula Vista by Pacific and deliver to City Annual CRV payments payable pursuant to California Public Resources Code 014549.6 (" CRV Fee") as it may be amended or replaced. City shall be entitled to the CRV Fee payable in 1999, and to all future CRV Fees which accrue during the Term. All other CRV revenue and scrap value payments generated as a part of the per ton value from the Processing of Designated Recyclables shall be subject to revenue sharing between Pacific and City as described in Section 8.6. Funds accrued to City under this section shall be used to support Integrated Solid Waste Management, Recycling public education, printing, promotion and incentive programs. Pacific shall not materially change its Collection or Processing methods or subcontracts in such a way as to adversely affect CRV Fees or other amounts to be paid to City without City's prior written approval. 4.6 Other Fees. Except for the Franchise Fees, Signing Bonus, Annual Bonuses and other fees provided in this Article IV and any generally City imposed taxes, fees or charges assessed on all businesses for goods or services in City, City shall not impose any other or further fees or assessments on Pacific or any valid successor or assign in connection with its activities under this Franchise except to the extent that Pacific may immediately pass-through such tax, fee, charge or assessment to Ratepayers (and for which Pacific shall cooperate with City in collecting). City agrees to coordinate, whenever possible, the concurrent imposition of any pending regulatory fee increases with any pending service rate increases by Pacific. Further, in the event that fees or assessments are imposed on Pacific with respect to the Pacific's rights under this Franchise, and the legislative action or actions imposing the same further requires that the same are diverted, earmarked or otherwise paid over to the benefit of City, in whole or in part, and such action or actions are not otherwise offset by a related legislative action or actions which reduce City revenues under this Franchise such sums, if any, shall be promptly rebated to Pacific's accounts or paid over to Pacific. 5. Compliance with Laws and Directives. 5.1 Pacific shall comply with all Applicable Law (or such higher standards as may be required under this Franchise) regarding the manner in which it conducts its trade and business. Pacific and City agree to cooperate with each other in reaching a modification to this Franchise to the extent required by law at any time it should be deemed necessary in the future. In the ,/ "OOCNUM" /l J..!:> -16- event of any Change in Law, or a successful third-party challenge to all or any material provision of this Franchise that in either case materially affects City's consideration or Pacific's operational requirements hereunder, the parties agree to meet and confer in order to develop reasonable modifications to this Franchise in order to allow this Franchise to continue in substantial conformance with its terms as they existed prior to such Change in Law. If the parties are unable to so agree upon reasonable modifications to this Franchise, the party adversely affected by such Change in Law or challenge shall have the right to terminate this Franchise (such termination being effective no earlier than three hundred sixty-five (365) days from exercise of such right); provided, however, the parties agree to meet and confer to determine if the Franchise can be terminated earlier in order to transition as quickly as possible to a new franchisee. 5.2 In addition, at all times during the Term of this Franchise, Pacific shall perform its obligations hereunder to the reasonable satisfaction of the City Manager (or a delegate thereof) who shall have the right, consistent with the terms and conditions of this Franchise, to issue orders, directions and instructions to Pacific from time to time with respect to the Collection, transportation, and Removal of Solid Waste and Franchised Recyclables, the performance of Pacific's services hereunder, and Pacific's compliance with the provisions of the ordinances of the City of Chula Vista as they now exist or may from time to time be amended, and Pacific agrees to comply therewith. 6. Services to be Provided. 6.1 In General. Pacific undertakes and agrees, for the consideration set forth herein, to collect, pick up, remove and dispose of, all Solid Waste and Franchised Recyclables which are generated or accumulated by or upon all property located within the jurisdictional boundaries of the City during the Term of this Franchise, except as herein otherwise provided, subject to and in accordance with the terms and provisions hereof. Pacific shall furnish all labor, equipment, and vehicles (including adequate standby equipment and vehicle capacity to provide the service herein required in the event of a breakdown), and all insurance and bonds necessary under Section 9 hereof to insure the efficient and timely performance of such obligation. All Solid Waste and Franchised Recyclables collected by Pacific shall become the property of Pacific immediately upon the Collection thereof, and shall be forthwith removed and transported by Pacific for disposal in the Otay Landfill, the Sycamore Canyon Landfill or such other Landfill or Processing facility for Franchise Recyclables mutually agreed upon by Pacific, City, Otay Landfill, Inc. and Sycamore Canyon Landfill, Inc., or for sale, as appropriate, which shall be provided, arranged for or furnished by Pacific in accordance with the terms of this Franchise. The Collection and Removal of Solid Waste and Franchised Recyclables shall be done in a prompt, thorough, lawful and workmanlike manner. ^DOCNUM^ /1" c;2Þ -17- 6.2 Operational Plan. The Collection, Removal and disposal of said Solid Waste and Franchised Recyclables by Pacific shall be done in accordance with an operational plan reasonably approved by the City Manager ("Operational Plan"). The Operational Plan shall describe the routes to be established and shall contain details regarding servicing schedule, the equipment to be used, and alternate procedures to be followed in the event of severe weather or equipment failures. The Operational plan may be amended at any time by mutual agreement of the parties. In addition, City reserves the right to require reasonable modifications to the Operational Plan if at any time during the Term of this Franchise City determines that the public interest requires a Collection program differing from that which Pacific has established, or that technological or other changes materially affect the necessity of or level of the services provided for hereunder. The Operational Plan shall include, at a minimum, the programs, terms and conditions contained in this section and in Section 8 hereof, below. Additional performance standards are contained in Exhibit B attached hereto. 6.2.1 Collection Times and Freauencv. At least one regular weekly Collection for Solid Waste, Recycling and Yard Waste shall be provided to each Small Quantity Generator and Large Quantity Generator within the City as applicable (except for multi-family Recycling, which shall be at least once every two weeks). Industrial Collection shall be handled on an on-call basis in a manner mutually agreeable to Pacific and individual customers as more specifically provided in Section 6.2.3 below. Pacific shall not collect Solid Waste or Franchised Recyclables within a Residential area between the hours of 6:00 p.m. and 6:00 a.m. Upon the earlier of conversion to automated service or expansion of the Otay Landfill hours of operation, Pacific shall not collect Solid Waste or Franchised Recyclables (i) within a Residential area between the hours of 6:00 p.m. and 7:00 a.m or (ii) within a Commercial area which is immediately adjacent to a Residential area before 7:00 a.m. Pacific shall complete all routes by the end of the scheduled allowed service day, except in the event of emergency, hazardous weather conditions, natural disaster or other unforeseen circumstances beyond Pacific's reasonable control. With prior written permission of the City Manager, this time frame may be modified. Pacific agrees to meet and confer with City and make a good faith effort to remedy each circumstance where Collection service may be a Nuisance to residents, including but not limited to Commercial Collection adjacent to a Residential dwelling or dwellings. 6.2.2 Ho1idavs. The following shall be considered legal holidays where Collection services shall not be required for purposes of this Franchise: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. Any other days must have prior written approval from the City Manager. When a regularly scheduled Small Generator Collection falls on a legal holiday, the Collection for that day and succeeding days of that week shall be rescheduled one day later. Holiday disruptions of Large Generator and Industrial Collections shall be handled in a manner mutually agreeable to "DOCNUM' /J-;<1 -18- the Pacific and individual customers. 6.2.3 Containers: Tvpe and Location. Pacific shall provide Bins as required for Large Generator (Commercial) and Industrial Generator customers or whenever other customers of Pacific request their use. Each Bin shall be placed in an accessible, outside location according to individual agreements with each customer. Any new or replacement Bins shall be fitted with plastic lids. Pacific shall color code all Carts, Bins and Recycling Boxes as soon as possible, but in no event later than July 1, 2000, in a manner approved by City. At City's election, at the end of the Term, Pacific shall be required to transfer ownership to City and City shall accept all operable Solid Waste, Recycling and Yard Waste Recycling Boxes and Carts which are 5 years old or less (excluding metal containers of one yard capacity or greater) in exchange for City's payment to Pacific of an amount equal to (i) 90% of the original wholesale purchase cost of all of such containers which are 1 year old or less, (ii) 80% of the original wholesale purchase cost of all of such containers which are between 1 and 2 years old, (iii) 70% of the original wholesale purchase cost of all of such containers which are between 2 and 3 years old, (iv) 60% of the original wholesale purchase cost of all of such containers which are between 3 and 4 years old and (v) 50% of the original wholesale purchase cost of all of such containers which are between 4 and 5 years old. At City's election, at the end of the Term, Pacific shall be required to transfer ownership to City and City shall accept all operable Solid Waste, Recycling and Yard Waste Recycling Boxes and Carts which are 5 years old or greater (excluding metal containers of one yard capacity or greater) at no charge to City. 6.2.4 Public Place Containers. Pacific agrees to provide and maintain up to twenty (20) additional litter containers per year until build-out of the expansion of the Otay Ranch area is complete (provided City reimburses Pacific for the cost of any such container to the extent such cost exceeds $350) for the use of the general public for public areas such as plazas and rights-of-way and to empty and dispose of the contents as necessary. Pacific shall provide additional standard litter bins, with covers and signage approved by City, at locations requested by City within 96 hours of City's request. Materials deposited in such public place litter bins shall be collected weekly or twice per week as needed with Residential or Commercial waste. 6.2.5 Notice of Collection Schedule. Pacific shall prepare and furnish to all customers not less than four (4) days prior to the beginning of, or change in service, schedules setting forth the days on which the Collections shall be made. Notice shall be in such form as is first approved by the City Manager or a designee thereof. 6.2.6 Local Operations and Manaqer. Pacific shall maintain its offices and service fleet at its current facility on Energy Way in the City, or at another appropriate location within "OOCNUM" /7-?- f-19- the City. Pacific shall at all times during the term of this Franchise have the general market manager for the San Diego region with decision making authority with respect to this Franchise or the operations manager for the San Diego region responsible for the oversight and implementation of this Franchise located at its Chula Vista offices. City shall have prior reasonable approval with respect to the appointment or transfer (except for promotion) of such persons. 6.2.7 Citizen Drop-Off Proqram. Pacific or its Affiliate shall implement a citizen drop-off program whereby Chula Vista residents may drop-off Solid Waste and Recyclables generated by such residents at the Otay Landfill. 6.2.8 Construction Demolition Proqram. Pacific shall implement construction demolition recommendations attached hereto as Exhibit C and incorporated herein by this reference. 6.2.9 Sinqle Can Service for Seniors. Pacific shall maintain a reduced price single can program for senior citizens with scheduled billing comparable to standard Residential curbside services. 6.2.10 Missed pick-Ups. In case of a missed pick-up called in by City or a Generator, Pacific shall, where possible, provide Collection within 24 hours. If unable to accommodate due to inadequate notice, the Generator shall be so notified and the materials shall be picked up on the next scheduled Collection day. Information on missed pick-ups shall be logged by Pacific and shall be available to City upon request. 6.2.11 Special Events and Free Disposal Days. Pacific shall cooperate with City in carrying out special events to improve community appearance. Such cooperation shall include, but not be limited to, Pacific's provision of free Solid Waste and Recycling containers and Collection services for at least two special public events sponsored by City. Additional events may be serviced at Pacific's discretion. Free services shall not be offered to special event organizers other than City until such parties have submitted a plan to the City Manager and received his or her approval thereof. Special events shall include, but not be limited to, Harbor Days, Chula Vista Expo, Arturio Barrios and Youth runs, Bonitafest, Lemon Festival, Christmas Parade, Community Clean-up days, and the semiannual free disposal days. In addition, Pacific will provide two annual one-day Collection events at a location and time approved by City where customers of Pacific within the City may dispose of Solid Waste at no additional charge. 6.2.12 Bulkv Waste. Pacific shall institute and carry out for the Term of this Franchise a free Bulky Waste pick- up program for Small Quantity Generators and a limited Bulky Waste pick-up program for Large Quantity Multi-family Generators in accordance with the terms and conditions set forth on Exhibit ~ attached hereto and incorporated herein by this reference. 'DOCNUM' /J-;2,7 -20- 6.2.13 Eauipment Specifications and Maintenance. Initially, and throughout the Term, the average age of all Collection vehicles must be not more than six (6) years, the actual age of any Collection vehicle must not be more than eleven (ll) years, and all such vehicles must be radio controlled. All truck bodies will be specifically designed and manufactured for mechanized Solid Waste, Yard Waste and/or Recycling Collection, completely enclosed, all metal, watertight and capable of withstanding internal fires. Pacific shall assign a smaller and lighter sized Collection vehicle for mobile home parks and special services. Pacific shall clean and wash all trucks at least once each week and shall otherwise keep them clean, neat and in a sanitary condition at all times. All vehicles shall be field inspected by someone other than the driver on a regular basis, but not less than quarterly, for solid or liquid leakage. All leaks discovered shall be immediately repaired. Pacific shall paint its name and telephone number on the side of each truck and on all drop bodies and similar equipment in letters not smaller than four inches high or use a decal approved by the City Manager. Each vehicle shall at all times have in the cab, the registration of the truck, certificate of insurance card and an identification card with the name of whom to telephone in case of an accident. Each vehicle shall also be equipped with a five-pound fire extinguisher certified by the State fire marshal, as well as a two-way radio. All graffiti on equipment shall be promptly removed, by no later than 2 weeks after the earlier to occur of Pacific's discovery or City's notice to Pacific thereof. All of Pacific's equipment may be inspected at the discretion of the City Manager or any other appropriate agency at the point of operation at any time. 6.2.14 Spillaae. Pacific shall exercise all reasonable care and diligence in collecting Solid Waste and Franchised Recyclables so as to prevent spilling, scattering or dropping of Solid Waste or Franchised Recyclables, and shall immediately, at the time of known occurrence, or upon notification by City, clean up any spillage. 6.2.15 Disposal of Solid Waste. Pacific shall dispose of Solid Waste (which has not been source separated for the purposes of recycling or composting) , at its expense, at the Otay Landfill or the Sycamore Canyon Landfill, both being City authorized Landfills, in accordance with all Applicable Law, or such other Landfill mutually agreed upon by Pacific, City, Otay Landfill, Inc. and Sycamore Canyon, Inc. Disposal of Solid Waste at waste-to-energy plants and Landfills located outside of the State requires the prior approval of City. Pacific shall not dispose of Solid Waste, Yard Waste or Recyclables generated within the City by land application, incineration, waste-to- energy or any other form of transformation without first obtaining written approval from the City Manager. 6.2.16 Emplovees. Pacific shall provide top quality service by industry standards, including competent, qualified and sober personnel who serve the public in a courteous, helpful and impartial manner. Subject to all "OOCNUM" /l"3Ò -21- Applicable Law, and the provisions of collective bargaining agreements negotiated in good faith (a) City may, at its option, require fingerprinting of Pacific's employees or agents whose service will cause them to enter onto or work in close proximity to private property; and (b) Pacific shall hire employees without regard to race, religion, color, national origin, sex, political affiliation, or any other non-merit factor. Any employee driving a vehicle shall at all times have in his possession a valid and appropriate vehicle operator's license issued by the State. Pacific and its employees and agents shall be required to wear clean clothing of a uniform type when engaged in Collection service on public streets. 6.2.17 Inauiries and Complaints. a. Telephones will be attended by competent personnel providing live customer response from 8:00 a.m. to 6:00 p.m. on regular work days, 8:00 a.m. to 12:00 p.m. on Saturdays, and an answering service shall be provided after hours, weekends and holidays. b. Pacific shall have a formal and auditable complaint procedure. Upon request, City will be provided details of any complaints, including the resolution thereof. Pacific shall make a good faith effort to return such calls by noon the next business day. Pacific shall check with City by fax or telephone at 3:30 p.m. each service day to obtain information regarding complaints or inquiries and shall resolve all Collection issues by 6:00 p.m. the next business day. Pacific shall staff its phones such that the average wait time to reach a customer representative does not exceed ninety (90) seconds for any standard calendar week and is otherwise not exceSSlve. 6.2.18 Billina. Pacific will provide the billing and be totally responsible for the collection of payments, including City imposed fees for remittance to City. Pacific shall include the City Quarterly and other City inserts in its billing statements. Service to Small Quantity Generators shall not be shutoff for nonpayment and delinquent Small Quantity Generator accounts will be referred to City for collection. Service shutoff of service to Large Quantity Generators and Industrial customers for nonpayment shall not be instituted before thirty days after initial billing and after sufficient notification (including a list of such accounts to City), to the extent permissible under Applicable Law. To the extent of any inconsistency between the provisions of this section and the Chula Vista Municipal Code the terms of the Municipal Code shall govern. Commercial billing shall be monthly in arrears of service. Pacific will exercise its best efforts to convince the individuals responsible for corporate billing policies at Pacific to exempt City and this Franchise from existing corporate policies such that Pacific may transfer billing related to this Franchise to a mailing/billing house located within the Greater San Diego Area by July 1, 2000. If the billing is not so transferred by such date, the parties shall amend Exhibit B to ^DOCNUM^ ß-3/ -22- include a liquidated damages penalty for late bill delivery. Pacific will exercise its best efforts to convince the individuals responsible for corporate billing policies at Pacific to exempt City and this Franchise from existing corporate policies such that Pacific may convert its stationary and billing notices to a post-consumer content recycled paper and may remove plastic window or other non-recyclable items from billing. 6.2.19 Public Information. Pacific shall annually update a brochure for all classes of new customers and mail the same to the new customers as soon as reasonably possible but in no event later than the date of initial service to such customers. City shall have ten (10) business days advance notice to review and approve public information before printing and distribution, including billing inserts and handouts. City's failure to respond within such 10-day notice period shall be deemed City's approval of such public information. 6.2.20 Taaaina and Penalties. Pacific shall "tag" and collect (as trash, if necessary) inappropriate disposal by the end of the scheduled service day and shall provide City a monthly report of same. Pacific shall comply with and implement City's system for imposing penalties on Generators which violate applicable Municipal Code provisions. 6.2.21 Reports. Monthly, quarterly and annual reports shall be provided to the City Manager regarding Franchise operations. Monthly reports shall be provided on the 22nd day of each month for the prior month. Quarterly reports shall be provided on the 22nd day of the first month after each calendar year quarter for the prior quarter. Annual reports shall be provided by February 16 of the subsequent year. Unless otherwise agreed upon by the parties, the contents of the reports and their format shall be in substantially the form attached hereto as Exhibit F. City shall have the right to audit such records as necessary to verify operational performance. If the reports and records are found to have major discrepancies with Pacific's reports and/or the requirements of the Operational Plan, Pacific shall reimburse City for the costs directly related to the audit. City will not request such an audit without having provided Pacific with 20 working days to respond to a verification of Operational performance or the contents of a report. 6.2.22 Notice of Chanaes to Equipment. Pacific shall notify City prior to entering into any contract for the purchase of any vehicle, or to changing the color or signage on same, and shall meet and confer with City in order to determine the appropriateness of same. 6.2.23 Industrial Roll-Off Service. Pacific shall provide Roll-off Services and compactor equipment and personnel sufficient to meet the Solid Waste, Recycling and composting demands of local contractors, Industrial Collection shall be handled on an on-call basis in a manner mutually agreeable to Pacific and individual customers with the standard being the delivery of bins and/or Collection service by the end of the next ^DOCNUM' /1~3;<" -23- regular business day following a request for service, and same day service shall be available upon request. The level and cost of each service shall be as outlined in Exhibit G. 6.2.24 Clean Fuel Source. Pacific shall develop a pilot project for Collection vehicle replacement or conversion to a clean fuel service in cooperation with City within 180 days which identifies Collection vehicles for conversion and provides that conversion will occur if City and Pacific can identify outside funding to pay for (a) the vehicle conversion, (b) incremental cost of new vehicles and (c) costs for a centrally located fueling station. Pacific or its Affiliate will promptly implement a program regarding the purchase of new clean fuel source (~, E-rated electricity, propane, natural gas, liquid natural gas, hydrogen fuel cell, CNG, etc.) non-Collection support vehicles and on-site equipment using gasoline or diesel (such as fork lifts or generators) upon the replacement of such support vehicles and on-site equipment. Pacific will establish service with a California Green E Utility provider for its Chula Vista facilities. 6.2.25 Co-Minqlinq. Pacific shall not co-mingle Solid Waste, Yard Waste or Recyclables with Solid Waste of any kind from other jurisdictions. Pacific shall separately reflect in its reports Solid Waste or Recyclables collected from other franchises from the Solid Waste or Recyclables collected in the performance of this Franchise. Pacific and City shall meet and confer regarding board scales or other such provisions that Pacific may recommend to accurately report the origin of such material. Co-mingling shall be allowed only with prior City approval at City's sole discretion and is anticipated to apply to a limited number of routes where Commercial or Residential developments are divided by two or more jurisdictional boundaries. 6.2.26 No-Parkinq Siqns. City staff will submit for City Council consideration and staff shall support a program for the posting of signs prohibiting parking on streets during trash Collection days in new major development areas within the City. City staff, including but not limited to Recycling Rangers, shall support adherence to the program with public education and enforcement measures to be developed and implemented in City's sole discretion. 7. Rates for Collection and Other Services. 7.1 In General. In consideration of Pacific's provision of Solid Waste and Recycling services in accordance with the terms of this Franchise, Pacific shall be permitted to charge service fees ("Rates") to Generators, except for Generators that are exempt from Rates under this Franchise or under Applicable Law for which, Pacific has received prior written approval from City authorizing such exemption("Ratepayers"). Notwithstanding the foregoing, in no event shall the Rates charged exceed the maximum Rates established by City under this Section 7 ("Maximum Rates") . "OOCNUM" /1~33 -24- 7.2 Initial Collection Rates. The initial Maximum Rates permitted to be charged by Pacific and paid by Ratepayers for Solid Waste and Recycling services provided by Pacific under this Franchise shall be those set forth on Exhibit G attached hereto and incorporated herein by this reference. The Maximum Rates set forth on Exhibit G shall remain in effect from the beginning of the Term until June 30, 2000. Thereafter, the Maximum Rates shall be subject to increase by Pacific in accordance with the terms of Section 7.3 hereof, below. 7.3 Pacific's RiGht to Increase Collection Rates. 7.3.1 Commencing on June 30, 2000, and upon each one year anniversary thereof for the remainder of the Term, the Maximum Rates (excluding any City imposed Franchise Fees, Household Hazardous Waste and AB 939 Fees and future allowable "pass throughs" under this Franchise) shall be increased on the following basis: a. Rates for Small Quantity Generators, Large Quantity Generators and Industrial/Roll-off ("General Service Rates") shall be increased effective as of July 1, 1999 and each annual anniversary thereof through July 1, 2002 by an amount equal to the product of the previous year's Rate multiplied by fifty percent (50%) of the percentage increase in the San Diego Area Consumer Price Index for All Urban Consumers (all items) published by the United States Department of Labor, Bureau of Labor Statistics for the latest twelve-month period for which statistics are available ("Applicable CPI Increase"). For example, assume that the Maximum Rate for Small Quantity Generators as of June 30, 2000 was $13.20 per month, and the excluded City imposed fees were $1.20, and that the Applicable CPI Increase was two and five-tenths percent (2.5%). For the twelve-month period commencing on July 1, 2000, Pacific would have the right to charge a Small Quantity Generator Service Rate of up to $13.37. The 2% increase in the Franchise Fees scheduled to go into effect on July 1, 2000 shall not be deducted from Maximum Rates for purposes of determining any CPI increase to the operational Rate component. In the event the Consumer Price Index referred to above shall no longer be published, then another similar generally recognized index shall be agreed upon by the parties. b. Commencing on July 1, 2003 and each annual anniversary thereafter during the term of this Franchise, Maximum Rates for General Service Rates shall increase In an amount not to exceed the product of the previous year's Rate multiplied by sixty-six and two-thirds percent (66.66%) of the Applicable CPI Increase. c. Notwithstanding the foregoing, at no time shall the Small Quantity Generator Rates exceed ninety percent (90%) of the average for the County of San Diego for the "DQCNUM" /1- 3'1 -25- same level of service (as published in the SANDAG semi-annual rate review, or in the event SANDAG no longer published such review, such independent surveyor surveys mutually agreed upon by City and Pacific, (all franchise cities in the County, with Pacific and City each at their option excluding one jurisdiction), after subtracting any Franchise Fees (except the 2% increase in the Franchise Fees scheduled to go into effect on July 1, 2000), AB 939 Fees, Household Hazardous Waste Fees and any other pass throughs allowed under this Franchise, and after adding back any readily identifiable direct local subsidies ("Adjusted Mean County Average"). The limitations set forth in this subparagraph shall be applied only to determine whether Pacific is entitled to the CPI adjustment described above, and in no event shall Pacific be required to reduce Small Quantity Generator Rates. d. Beginning July 1, 2007 and at each four-year anniversary thereof throughout the term of this Franchise, Pacific shall be eligible for a market adjustment for its then applicable maximum General Service Rates, Commercial Mixed Paper Rates and Commercial Green Waste Rates. For all market adjustments in 2007 and 2011, the maximum market adjustments shall be up to ninety percent (90%) of the corresponding Adjusted Mean County Average for such Rates. Beginning July 1, 2015, the maximum market adjustments applicable to all Large Quantity Generator Service Rates (excluding three- yard bin or smaller/once per week service) shall be increased to ninety-five percent (95%) of the corresponding Mean County Average. Such market adjustments are intended to allow Pacific to make upward adjustments in its Rates. In no event shall this market adjustment provision require Pacific to reduce its Maximum Rates for any service level. 7.3.2 Pacific's right to increase a Rate as provided above is contingent upon Pacific providing written notice of a proposed increase including proposed Rates for all Generator classes of fees to City and all affected Ratepayers by no later than 45 days prior to the effective date of the proposed increase. At City's discretion, failure to comply with this notice requirement may by deemed to be a final decision by Pacific not to increase Rates for the upcoming year. Notwithstanding the foregoing, if Pacific does not elect to increase a Rate in any year, or does elect to increase a Rate, but not up to the allowable Maximum Rate for such year, the allowable Maximum Rate for such year shall become the base Rate for purposes of determining the allowable Maximum Rate for the ensuing year such that its unused capacity to increase Rates in any given year shall be carried forward to subsequent years. If Pacific elects not to increase service Rates up to the Maximum Rate allowable for any given year, upon City's request, Pacific agrees to meet and confer with City to discuss the expected timing and amounts of possible future imposition of Rate ~ncreases. 7.3.3 City agrees to work with Pacific to develop a mutually agreeable Rate structure for Small Quantity Generator / 'DOCNUM' /:1~3i>-26- Solid Waste customers based on volumes of waste generated and automated service ("Variable Rate Structure"). The Variable Rate Structure shall, to the extent possible (i) establish new Rates that do not increase revenues above the then established corresponding revenue Rate base, (ii) give Pacific the benefit of operational efficiencies and (iii) give City the benefit of avoided disposal. City agrees to meet and confer with Pacific to develop operational and recycling performance milestones that could result in Pacific sharing the benefits of avoided disposal. The parties agree to exercise their best efforts to develop and present to the City Council such a Variable Rate Structure by no later than May 1, 2001, and sooner if possible. The final decision to implement a Variable Rate Structure shall be at the City Council's sole discretion. 7.3.4 Miscellaneous equipment rental and service Rates set forth as Miscellaneous Equipment and Service Rates in Exhibit G ("Miscellaneous Rates") shall be fixed until June 30, 2007; provided, however, that if City has been notified by the State that City has achieved the then in effect mandated diversion goal for any calendar year prior to July 1, 2007, Pacific shall receive an increase in Miscellaneous Rates for that year equal to 66.66% of the Applicable CPI Increase, effective as of the following July 1. Commencing July 1, 2007, Miscellaneous Rates shall automatically increase at the rate of 66.66% of the Applicable CPI Increase. Miscellaneous Rates shall include all Rates other than General Service Rates, storage container Rates and la-val lock Rates. 7.3.5 Pacific agrees to coordinate, whenever possible, the concurrent imposition of any pending Rate increase with any pending regulatory fee increases by City. 7.3.6 Whenever Franchise Fees and AB 939 Fees are to be subtracted or excluded for purposes of determining Maximum Rates under this Section 7.3, City agrees to meet and confer with Pacific with respect to the inclusion or exclusion of any other additional fees by any other Governmental Body for such calculations. 7.4 Senior and Other Preferred Rate Schedules. The City Council may, at any time, establish a program for preferential Rates for senior citizens or other classifications which are deemed to be in the public interest. Pacific shall have the right to pass through the cost of any decrease in Rates payable by senior citizens or other preferred Ratepayers under such program(s) to the remaining Ratepayers. 7.5 Intentionallv Deleted. 7.6 Most Favored Nation Rate. 7.6.1 Notwithstanding any provision in this section 7 to the contrary, in the event that, during the Term of this Franchise, Pacific, or any Affiliate thereof, agrees to a Rate or Rates for collecting, removing, transporting, Processing 'DOCN\JM^ /?~3Þ -27- and/or disposing Solid Waste and Recyclables under a waste management franchise (or equivalent contract) within the County of San Diego which is/are lower than the Rate or Rates then in effect for the corresponding service(s) within the City, then Pacific shall immediately charge such lower Rate(s) to City Ratepayers. In addition, notwithstanding any provision in this section 7 to the contrary, in the event that any Solid Waste services Provider agrees to a Rate or Rates for collecting, Removing, transporting, Processing and/or disposing Solid Waste and Recyclables for Small Quantity Generators under a waste managemnt franchise or (equivalent contract) within the County of San Diego which is/are lower than the Rate or Rates then in effect for the corresponding service(s) within the City, then Pacific shall, effective as of the July 1, following such event, charge a lower Rate or Rates to City Small Quantity Generators. This provision shall operate such that at all time during the Term of this Franchise Small Quantity Generators have the lowest Rate or Rates charged under a franchise or (equivalent contract) for Solid Waste and Recycling Services in San Diego County. For purposes of comparing City Rates with those offered in another franchise (or equivalent contract) within the County of San Diego, Franchise Fees, AB 939 Fees, Household Hazardous Waste Fees and any other pass throughs allowed under this Franchise shall first be subtracted and any readily identifiable direct local subsidies by other jurisdictions shall be added back so that no such amount shall be a component of the Rate comparison. 7.6.2 In the event that the lower Rate or Rates that formed the basis for downward adjustments in City Rates are subsequently increased in the other Franchised territories, Pacific shall have the right, after meeting and conferring with City to coordinate timing issues, to make a corresponding increase in the corresponding City Rate(s); provided, however, in no event shall such increased Rate exceed the maximum Rate that would have been chargeable pursuant to City's standard Rate structure as set forth in Sections 7.1 and 7.2 hereof, calculated as if no initial downward adjustment in City Rates had been made. 7.7 Commercial Rates for Green Waste/Mixed Paper. Throughout the Term of this Franchise, Green Waste and Mixed Paper service charges to Commercial customers shall not exceed the Rates set forth in Exhibit G per pickup with respect to 3 to 8 yard Bins. When City achieves the fifty percent (50%) diversion rate goal stated in AB 939, Pacific may increase such Rates (i) in the year such goal is achieved in amounts not to exceed fifty percent (50%) of the difference between such Rates and the Mean County Average and (ii) the remaining fifty percent (50%) of such difference in the year thereafter. Thereafter these rates may increase in an amount not to exceed the product of the previous year's Rate multiplied by 66.66% of the Applicable CPI Increase. 7.8 Pacific's Reserved Riqht to Request Increases Based on Extraordinarv Circumstances. Notwithstanding the foregoing, Pacific may submit a request to the City Council for additional Rate relief at any time extraordinary expenses are incurred ^DOCNUM^ /1- 31 -28- beyond Pacific's reasonable control. City Council reserves the right to approve or disapprove such a request in its sole discretion. 8. Recyclinq Services. 8.1 In General. Pacific agrees to provide all necessary labor, services, materials and equipment to implement Residential, Multi-family and Commercial Recycling services for Franchised Recyclables on the terms and conditions set forth below: 8.2 Collection. 8.2.1 Small Quantity Generators. Pacific shall collect and remove all Franchised Recyclables that are placed in a designated Recycling container at the curbside on public streets, from Small Quantity Generators. Pacific shall collect the Franchised Recyclables once each week, regardless of weather conditions. collection will be on the same day of the week as the regularly scheduled trash Collection day. Pacific and City will mutually agree to any changes in Collection day. Pacific will notify Small Quantity Generators of any changes in the collection day by distributing a flyer no later than two weeks prior to the affected day. Unless Pacific obtains City's prior written approval, Pacific shall not change the current method of source separated Collection at the curb for Small Quantity Generators for the following materials: (a) news print (ONP) , (b) mixed Residential paper (MRP) , (c) corrugated Cardboard (OCC) , (d) rigid containers, including glass, tin, bi -metal, steel, White Goods, Aluminum, plastic No. 1 and No. 2 plastics, motor oil and filters and metal coat hangers. 8.2.2 Multi-Familv Residential. Pacific shall convert all current Multi-family complexes of nine Units or less to curbside Recycling Rates and services in accordance with the implementation schedule attached hereto as Exhibit H. All future Multi-family complexes of nine units or less shall be served through curbside Recycling. Mixed Paper Recycling services shall be provided to Multi-family complexes of ten Units or more in accordance with the implementation schedule attached hereto as Exhibit H. Collection will be on regularly scheduled days as shall be arranged with the building property owner, manager or designated agent thereof, with service as needed, but no less than every two weeks. Pacific and City will mutually agree to any changes in Collection schedule frequencies or Removal Frequency. Pacific will notify the building property owner, manager or designated agent thereof, of any changes in Collection day(s) by written notification no later than two weeks prior to the affected day. Unless Pacific obtains City's prior written approval, Pacific shall not change the current method of source separated Collection at the designated Recycling area for Multifamily complexes of 10 or more Units for the following materials: (a) news print (ONP) , (b) mixed Residential paper (MRP) , (c) corrugated Cardboard (OCC) , (d) rigid containers, including glass, tin, bi-metal, steel, White Goods, Aluminum, "DOCNUM' /1-:3 f7 -29- plastic No. 1 and No. 2 plastics, motor oil and filters and metal coat hangers. 8.2.3 Commercial. Pacific shall continue to provide free rigid container Cart service for Hospitality and Retail businesses under 5,000 square feet, and free rigid container Bin service for Hospitality businesses of 5,000 square feet or greater selling beverages, upon request by such Generators or City. Pacific may subcontract the Recycling services provided under this section to a third party subject to City's prior reasonable approval. Pacific and Cìty shall meet and confer in order to establish reasonable terms and conditions for this service which both serve City's diversion obligations, and Pacific's interests in avoiding unauthorized use of the free service by non-qualified businesses. In addition, Pacific agrees to continue its Green Waste Recycling incentive program for all Commercial Green Waste Generators. 8.2.4 Citv-Wide. Pacific shall provide free Mixed Paper or rigid container drop-off Collection services at all Department of Conservation convenience zone locations in Chula Vista in accordance with the program attached hereto as Exhibit ]i. City and Pacific shall meet and confer regarding any changes to the program that may contribute to City's efforts to meet State-mandated recycling goals. 8.3 Vehicles. Design of Collection vehicles shall be done to limit the contamination and maximize the resale value of collected Franchised Recyclables. Any and all changes to the current method of Collection of Franchised Recyclables, as herein outlined, shall be approved by City in advance, including any changes in the way that the Franchised Recyclables are collected (separated and/or co-mingled), design of vehicles, etc. The current method of Collection and source separation for curbside Recycling is three (3) separate compartments, one (1) each for (i) news print (ONP) , (ii) mixed Residential paper (MRP) and corrugated Cardboard (OCe) and (iii) rigid containers and metal coat hangers. The current method of Collection and source separation for Multi-family Recycling is two (2) separate compartments, one (1) each for (i) news print (ONP) , mixed Residential paper (MRP) and corrugated Cardboard (OCC) and (ii) rigid containers and hangers. These two methods of Collection and source separation shall no longer apply in the event Pacific and City mutually agree upon a co-mingled automated service program. 8.4 Containers. The type and cost of container to be used, or changes of container type shall be approved by City prior to purchase and distribution. Containers may include 32 to 96 gallon Solid Waste Recycling and Yard Waste Carts, 18 to 24 gallon Recycling Boxes, 2 cubic yard Bins or 3 to 8 cubic yard Bins. Each container shall conform to the following: new plastic containers and/or lids shall contain a minimum of 25% post- consumer content recycled plastic; be fire resistant; be of durable quality and warranty; be heat stamped or labeled for commodity; be clearly labeled on the lids and the front facing of "DOCNUM' /7-31-30- the Bin, in Spanish and English (with graphics) as to the Designated Recyclable(s) and "No Trash"; and be clearly labeled with Pacific's name and phone number. 8.4.1 Small Ouantitv Generator and Small Ouantitv Multi-familv Generator Curbside. Pacific shall purchase and distribute curbside Recycling containers to be used by each Small Quantity Generator and Small Quantity Multi-family Generator included in the program. Pacific shall retain ownership of the containers subject to City's right to purchase set forth in Section 6.2.3 hereof. Each dwelling eligible to participate in the program will receive one container. If Pacific determines that the volume of recyclable material exceeds the capacity of the one container, additional containers shall be provided at no cost to the Generator. Replacement of containers that are stolen and/or damaged shall be made at no cost to the Generator at Pacific's discretion. Pacific will be responsible for keeping records and making them available to City regarding additional containers requested, and the reason for the request, e.g., damaged, stolen, needed to handle residence Recyclables beyond capacity of one container. 8.4.2 Larqe Ouantitv Multi-familv Generators. Appropriate container(s) shall be provided for use by each Large Quantity Multi-family Generator not provided Curbside Collection service for each Unit under Section 8.2.2., above. Such container(s) shall meet the space restraints and Collection needs of the respective complex and the residents therein. Each container shall conform to the following: slots in lids for placement of beverage containers (circular holes of appropriate sizes) and Newspaper/Mixed Paper (narrow slots of appropriate size). Pacific shall provide to each Large Quantity Multi-family Generator at least one exterior Recycling container per complex for co-mingled rigid Recyclables (Aluminum cans, Glass Bottles and Jars, #1 and #2 Plastic containers and Tin and Bi-metal Cans and any other Recyclables identified in the current "Waste Lines" public education brochure, (except plastic #3 and #7 containers) and one exterior Recycling container for Newspapers and Mixed Paper or alternatively at least one, 2-cubic yard or one 3-8 cubic yard divided Bin that effectively separates co-mingled rigid Recyclables from Newspapers and Mixed Paper. To the extent possible, exterior Recycling containers shall be required to be placed adjacent to or near the Refuse Collection containers. 8.4.3 Yard Waste; Green Waste. Pacific shall purchase and distribute, or otherwise arrange for the distribution of Yard Waste container(s) as follows: a. Small Ouantitv Generators. A container on wheels (approximately 64 to 96 gallons) to be used for the Collection of Yard Waste shall be offered to each eligible Small Quantity Generator for purchase or rent. Pacific shall distribute containers to all Small Quantity Generators requesting use of said containers. Pacific shall retain ownership of the containers unless the Small Quantity Generator pays in full for the container, as specified herein. This 'DOCNUM' /'1-j/ó -31- subsection (a) shall no longer apply in the event City and Pacific agree to automate Yard Waste Collection service. Should City move to Variable Rates, Pacific shall use the same replacement schedule set forth in Section 6.2.3 to reimburse the customer for purchased carts. b. Multi-Familv. An appropriate Yard Waste Collection and Storage container(s) shall be provided for use at each Multi-family complex that meets the space restraints and Collection needs of the respective complex and the residents therein. Unless Pacific obtains City's prior written approval, Pacific shall not change the current method of source separated Collection at Residential or Commercial locations for Green Waste. 8.5 Transportation of Materials. 8.5.1 In General. Except as provided below, Pacific shall transport collected Franchised Recyclables to a central Collection point for Processing and shall retain responsibility for the sale of such materials so as to yield the highest available market value for the material. No non-- contaminated Franchised Recyclables shall be landfilled, unless approved by City. Should market failure occur for one or more material types, only the City Manager (or designee) of City may decide not to collect the affected material. All written contracts, if any, with processors, recyclers or other buyers of Franchised Recyclables shall be submitted to City. 8.5.2 Yard Waste. In order to allow for the Yard Waste program to fully assist City in meeting its AB 939 obligations, City is interested in having the collected Yard Waste processed for compost or mulch (not bio-fuel) or alternative daily cover. To this end, Pacific shall transport all vehicle loads of the collected Green Waste materials to Organic Recycling West (ORW) or another compost facility permitted by the California Integrated Waste Management Board designated by City in its sole discretion. Pacific shall cooperate with City and ORW in developing and maintaining the current residential and commercial composting program. Pacific agrees not to oppose any Residential or Commercial composting program proposed by City and ORW for Chula Vista Generators and shall honor the terms and conditions of the ORW contract for the contract term and any extensions thereof. Additionally, Pacific will direct its staff to cooperate and be consistent with public education regarding the current City, Pacific and ORW program for the source separation, Collection and composting of Green Waste versus ADC or other Green Waste diversion methods for Chula Vista Generators. Should City choose to end its compost processing and marketing agreement with ORW or its successors, City agrees to provide Pacific with an opportunity to incorporate the program into their services prior to seeking an outside compost processing and marketing contractor. Small Quantity Generators within City may receive up to two (2) free Green Waste passes per 'DOCNUM' /:7-;// -32- year to ORW for a single vehicle no greater than one ton in capacity each. Each ton of Yard Waste brought to ORW by City crews or its subcontractors on City business shall be applied to the free 5% annual disposal limit described in Section 4.4.1. 8.6 Sale of Materials. Pacific shall use its best efforts to sell Franchised Recyclables (excluding Yard Waste) for cash at the highest available market rates. The "Net Revenues" (defined below) from such sales based upon an "All Materials Annual Average" (defined below) shall be shared between Pacific and City in accordance with the following formula: a. Where the applicable All Materials Annual Average is equal to or less than sixty dollars ($60) per ton, Paéific shall retain one hundred percent (100%) of the Net Revenues. b. Where the applicable All Materials Annual Average is greater than sixty dollars ($60) per ton, and the California Integrated Waste Management Board ("CIWMB") has determined that City has not met the 50% diversion goal stated in AB 939, the amount of "Incremental Net Revenues" (defined below) , derived from the portion of the All Material Annual Average above $60 per ton, shall be split forty percent (40%) of the Incremental Net Revenues to Pacific and sixty percent (60%) of the Incremental Net Revenues to City. c. Where the applicable All Materials Annual Average is greater than sixty dollars ($60) per ton, and the CIWMB has determined that City has met or exceeded the 50% diversion goal stated in AB 939, the amount of "Incremental Net Revenues" (defined below), derived from the portion of the All Material Annual Average above $60 per ton, shall be split sixty percent (60%) of the Incremental Net Revenues to Pacific and forty percent (40%) of the Incremental Net Revenues to City. For purposes of this section: "Net Revenues" shall mean all Gross Revenues accrued by Pacific over a relevant time period from sale of Franchised Recyclables (excluding Yard Waste, but including CRV and scrap value payments from each ton of material collected in the City), minus any amounts paid to third parties for Processing of sold Recyclables or as a broker's fee or commission. "Incremental Net Revenues" shall mean Net Revenues less the product of $60 multiplied by the number of tons of Franchised Recyclables (excluding Yard Waste) sold to generate such Net Revenues. "All Material Annual Average" shall mean the average price per ton (2,000 pounds U.S.) agreed to be paid to Pacific by purchasers of all Franchised Recyclables sold (excluding Yard Waste) over a relevant calendar year. Such amount shall be calculated by dividing the Net Revenues generated over the relevant calendar year by the number of tons of Franchised Recyclables sold (excluding Yard Waste) over that same period. Pacific shall pay any sums due to City under this Section 8.6 no later than March 22nd of each year. / t'-¿l~ "OOCNUM" -33- 8.7 Contamination. 8.7.1 Franchised Recyclables from a single Small Quantity, Large Quantity or Industrial Generator (as opposed to an entire vehicle load) that are contaminated due to the placement of Solid Waste in a designated Recycling container, or inclement weather that leaves the Franchised Recyclables unmarketable, may be placed in a designated landfill. Pacific shall retain a record of such occurrences and report said occurrences to City on a quarterly basis. Should contamination occur more than twice at a single Generator, said Generator shall be notified. Should contamination occur at a Generator site three or more times, the Small Quantity Generator shall be notified and charged pursuant to Section 6.2.20. Should contamination occur at a Large Quantity or Industrial Generator site the Generator shall be notified in advance and charged the disposal fee for dumping the contaminated Recyclables as Refuse at the Landfill. 8.7.2 Yard Waste, Wood Waste and pre-consumer food waste that is contaminated by plastic or non-organic material may from a specific Generator (as opposed to an entire vehicle load) be disposed of as Solid Waste. Pacific shall retain a record of such occurrences and report said occurrences to City on a monthly basis. Should contamination of Franchised Recyclables occur at a Generator site, Pacific shall "tag" such Generator and enforce City Municipal Code provisions in accordance with the procedures contained in Section 6.2.20 hereof. 8.8 Recvclinq Education. For each City fiscal year during the Term beginning in July 1999, Pacific shall pay City $69,000, payable on January 22, 2000 and every annual anniversary thereof, all of which funds City agrees to use for purposes of partially funding a Recycling public information and enforcement program ("Recycling Education Program"). The parties agree to meet and confer from time to time in order to assess the effectiveness of the Recycling Education Program, and, if necessary, to agree upon appropriate modifications thereto. City shall have lead responsibility for directing the development and implementation of the Recycling Education Program. City also agrees to take such steps as may be reasonably necessary to protect Franchised Recyclables placed at the curbside for Collection by Pacific under the terms of this Franchise and shall reasonably enforce the existing anti-Scavenging ordinance, as it may be amended from time to time by City. 8.9 Larqe Multi-Family Recyclinq Proqram Severable. The Small Quantity Generator curbside Recycling service, the large Multi-family Recycling service and the Small Quantity Generator Yard Waste Recycling service required hereunder are each subject to the performance standards and Franchise conditions detailed herein. For purposes of measuring satisfactory performance, and for enforcement purposes hereunder, Pacific agrees that its performance of the large Multi-family Recycling service will be considered severable from this Franchise, as further described in Section 8.10 below. "DOCNUM" /7-73 -34- 8.10 Special Termination Provisions. It is the intent of City that the term for the provision of each of the Recycling services shall run concurrent with the Term of this Franchise. However, until the earlier of such time as (a) Pacific meets the applicable Minimum Performance Standards attached hereto as Exhibit H and incorporated herein by this reference or (b) City meets the diversion goal of fifty percent (50%) stated in AB 939, the large Multi-family Recycling program shall be subject to cancellation upon six months written notice from City. Once either Pacific achieves the Minimum Performance Standards or City meets the diversion goal of fifty percent (50%) stated in AB 939, the large Multi-family Recycling program shall no longer be severable or subject to cancellation separate from the termination of this Franchise. 8.11 Recvclinq Proqram Expansion. It is City's intention to develop a comprehensive Recycling program to reduce the amount of material being disposed of in the Landfills and to comply with the mandates of the California Integrated Waste Management Act of 1989 (AB 939). Pacific agrees to use its best efforts to assist City in meeting such mandates by adding commodities to existing programs as resale markets are identified. Pacific also agrees to meet and confer with City to direct recovered materials futures to local manufacturers developing or improving long term markets at a comparable or greater net value. Contracts with non-Affiliates previously provided to and approved by City shall not be governed by this meet and confer obligation. However, Pacific shall meet with City to address such opportunities prior to renewing or entering into any new contract. Both parties hereby agree that City may not go out to bid for the expansion of this Recycling program until after City has met and conferred with Pacific with regard to its intent to do so. If separate amendments to this Franchise for Refuse Collection are not negotiated between City and Pacific as a result of such meet and confer process, City may go out to separate bid. 8.12 ADC Proqram. City shall not actively oppose Pacific's interest in pursuing increased diversion through the use of alternative daily cover outside of the City. Pacific shall accept non-compostable greens such as large Commercial loads of palm from Chula Vista Generators as ADC. / /-~V 'DOCNUM^ -35- 9. Insurance and Performance Bond. 9.1 Pacific agrees, at Pacific's own expense, to carry comprehensive public liability and automobile liability insurance coverage during the full Term of this Franchise, with City also named as an additional insured thereunder, covering liability for bodily injuries, death and property damage, arising out of or in connection with the operations of Pacific, under this Franchise in an amount not less than $1,000,000 for injuries including death to anyone person and in an amount not less than $5,000,000 for anyone accident or occurrence, and property damage in an amount not less than $200,000. Pacific further agrees to carry, at Pacific's own expense, workers' compensation insurance in accordance with the laws of the State. All of said insurance policies, or certificates thereof, shall be deposited by Pacific with the City Manager together with endorsements or statements from the insuring companies providing that such policies will not be subject to cancellation, modification or reduction of the limits of the policy until ninety (90) days after written notice to City by registered or certified mail. Such policies shall guarantee payment of any final judgment rendered against Pacific or City within the coverage provided, irrespective of the financial condition of, or any acts or omission of, Pacific. All of said policies shall be subject to the approval of the City attorney. 9.2 Pacific shall secure and deliver to the City Manager a twelve (12) month performance bond in the amount of $1,000,000 to secure the full, true and faithful performance of all their terms, obligations and conditions of this Franchise on the part of Pacific. Pacific shall present said bond together with a certificate from the surety showing payment in full for such bond, to the City Manager prior to the commencement of operations pursuant hereto and provide a one-year renewal and certificate of payment prior to the start of each year of this Franchise. 9.3 In the event of the termination or cancellation of the insurance or bond required hereunder or the failure of Pacific to provide the insurance and/or bond as hereinabove provided, prior to the effective date of such cancellation or termination, this Franchise may be suspended or terminated forthwith by City, by written notice thereof to Pacific. Any such suspension shall be for such period or periods as the City Manager from time to time may determine. No liability or obligation shall be incurred by City in favor of Pacific by virtue of any such notice or notices or from any such suspension or termination. In the event of such suspension or termination by City upon the failure of Pacific to secure and maintain on file said insurance and/or bond during the full term of this Franchise, Pacific shall be liable for any and all damages suffered by City arising out of such suspension or termination. 10. Hold Harmless. Pacific shall indemnify, save and hold harmless, City and any elected representatives, officers, employees, agents and volunteers thereof ("City Indemnified 'DOCNUM" /7- >{J-/-36- Parties") against and from all damages, including bodily injury and property damages, losses, liabilities, demands, claims, remediation obligations, judgments, decrees, costs (including court costs and reasonable attorneys' fees) and expenditures (collectively, "Losses") which such City Indemnified Party may suffer, or which may be recovered from, or obtainable against such City Indemnified Party for, or by reason of, or growing out of or resulting from City's grant or the exercising by Pacific of any or all of the rights or privileges granted hereby, or by reason of any act(s) or omissions of Pacific or its servants or agents in exercising this Franchise granted hereby, and Pacific shall defend with counsel reasonably acceptable to City any suit that may be instituted against any City Indemnified Party by reason of or growing out of or resulting from City's grant or the exercise by Pacific of any or all of the rights or privileges granted hereby, or by reason of any act or acts of Pacific, or its servants or agents, in exercising the Franchise granted hereby. Without limiting the generality of the foregoing, Pacific shall defend, indemnify, save and hold harmless any City Indemnified Parties from and against all Losses which such City Indemnified Parties may suffer, or which may be recovered from, or obtainable against such City Indemnified Parties, resulting from any repair, cleanup or detoxification, or preparation and implementation of any Removal, remedial, response, closure or other plan or replacement or restoration of natural resources (regardless of whether undertaken due to governmental action) at any Landfill at which Pacific (including its predecessor-in- interest and its successors-in-interest) disposed of Solid Waste collected from City Generators, or activities of Pacific or its Affiliates which result in a release or threatened release of hazardous materials into the environment in or around the City or at any Landfill. The foregoing indemnity is intended to operate as an agreement pursuant to Section 107(e) of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) , 42 USC, Section 9607(e), and California Health and Safety Code 25364, to defend, protect, hold harmless and indemnify the City Indemnified Parties from liability. The provisions of this Section 10 shall survive the end of the term or termination of this Franchise. 11. Remedies for Default Resolution of Dispute. 11.1 Defaults. The occurrence of anyone or more of the following events shall constitute a material default and breach of this Franchise by Pacific: 11.1.1 Pacific's failure to make any payment of the Franchise Fee or any other sum due under this Franchise, as and when due, where such failure shall continue for a period of ten (10) days after written notice from City that such amount was not paid on the date such payments is due; 11.1.2 Pacific's failure to observe or perform any of the material covenants, conditions or provisions of this Franchise to be observed or performed by Pacific (other than a monetary default as described in Subsection 11.1.1, above, a 'DOCNUM' //-~ -37- minor default as described in Section 11.2.1, below, or where such failure is excused by an Uncontrollable Circumstance as described in Section 13.9 below), where such failure shall continue for a period of thirty (30) days after delivery of written notice thereof from City to Pacific; provided, however, if the nature of such default reasonably requires more than thirty (30) days to cure, then Pacific shall not be in default in the event that Pacific shall commence cure of such breach within the foregoing thirty day period and diligently prosecute such cure to completion; or 11.1.3 Pacific files for bankruptcy protection, or is placed involuntarily into bankruptcy, control of a material portion of its assets thereof is assumed by a receiver or trustee or assigned for the benefit of its creditors, and such proceeding or condition is not dismissed or vacated within thirty (30) days of its commencement; or 11.1.4 Pacific's excessive commission of minor defaults as more specifically described in Section 11.2.1(b), below. 11. 2 Remedies Upon Pacific's Default. Upon the occurrence of any event of default by Pacific, City shall have any and all remedies available to City at law or in equity. without limiting the generality of the foregoing, City shall have the following remedies: 11.2.1 Liquidated Damaqes. a. City may assess liquidated damages against Pacific for unsatisfactory performance under the terms and conditions of this Franchise (except where such failure is excused by an Uncontrollable Circumstance as described in Section 13.9 below). A description of the actions or omission which will result in damages and the monetary amount of damages corresponding thereto is attached hereto as Exhibit B. City will provide Pacific with five (5) days written notice of any proposed assessment. Pacific will have the right to appeal City's assessment to the City Manager in accordance with the dispute resolution procedures set forth in Exhibit B hereof. b. Notwithstanding the foregoing, if more than 200 individual penalties, or fifteen thousand dollars ($15,000) in aggregated damages assessed under this Section 11.2.1 (excluding those late fees and interest amounts determined as a percentage of delinquent amounts due and payable to City hereunder) are imposed with respect to any calendar quarter, Pacific shall be in material default under this Franchise and City shall be entitled to pursue any and all additional remedies provided hereunder, including termination of this Franchise, but without the obligation to provide Pacific with an opportunity to cure. 11.2.2 Termination. If Pacific shall fail, neglect or refuse to comply with any of the material conditions of this 'OOCNUM" /7-11-38- Franchise (other than where such failure is excused by an Uncontrollable Circumstance as described in Section 13.9), and if such failure, neglect or refusal shall continue for more than thirty (30) days after written demand by the City Manager for compliance therewith (subject to extension as described in Section 11.1.2), then City, by the City Council, in addition to all rights and remedies allowed by law, thereupon may terminate the right, privilege and Franchise granted hereby, and all the rights, privileges and this Franchise of Pacific granted hereby shall thereupon be at an end. Thereupon and immediately, Pacific shall surrender all rights and privileges in and to this Franchise granted hereby. This Franchise is also subject to termination by City in the event that Pacific fails to obtain City Council approval for a change in ownership of its operating company in accordance with Chula Vista municipal Code Section 8.23.080. 11. 2 .3 Self Help. In the event Pacific fails, refuses, or neglects to collect and dispose of Solid Waste or Franchised Recyclables set out or placed for Collection at the time and in the manner herein required (after delivery of notice by City of City's intention to exercise its rights under this Section 11.2.3), City may collect and dispose of the same or cause the same to be collected and disposed of and Pacific shall be liable for all expenses incurred in connection therewith. Such remedy of City shall be cumulative and in addition to any and all other remedies it may have in the event of such failure, refusal or neglect of Pacific. The Collection, Processing and disposal of Solid Waste or Franchised Recyclables by City or by others as aforesaid shall not be deemed an election of remedies which shall preclude City from availing itself of additional remedies for Pacific's breach of contract. 11.2.4 Remedies Cumulative. No provision herein made for the purpose of securing the enforcement of the terms and conditions of this Franchise granted hereby shall be deemed an exclusive remedy or to afford the exclusive procedure for the enforcement of said terms and conditions, but the remedies and procedure outlined herein or provided, including forfeiture, shall be deemed to be cumulative. 11.3 City's Default. City shall be in default of its obligations hereunder as a result of a breach by City of any material obligation required to be performed by it hereunder (other than where such failure is excused by an Uncontrollable Circumstance as described in Section 13.9) if City fails to cure such default within thirty days after the receipt of written notice from Pacific specifying such default; provided, however, if the nature of City's default is curable, but more than thirty days are required therefor, City shall not be in default so long as it has commenced performance of such cure within said thirty day period and thereafter diligently pursues the same to completion. Upon any default by City hereunder, Pacific shall be entitled to pursue any and all rights provided at law or in equity. Notwithstanding the foregoing, City shall not be in default under this Agreement for any act or omission by City 'DDCNUM^ / :J-~f -39- where City is required by law to exercise independent legislative quasi-judicial, judicial or administrative discretion. 11.4 No Waiver of Remedies. The failure of either party at any time to require performance by the other of a provision hereof, shall in no way affect the right of such party entitled to performance to enforce the same thereafter. Nor shall the waiver of either party of any breach of any provisions hereof be construed to be a waiver of such provisions or of any succeeding breach thereof. 11.5 Administrative Review of Disputes. Prior to commencing litigation, a party shall first give the other party written notice of any dispute with respect to this Franchise. Such notice shall specify a date and location for a meeting of the parties hereto at which such parties shall attempt to resolve such dispute, and the name of a mediator selected by such party to mediate the meeting. City shall keep a record of the proceedings conducted and information presented during such meeting. The cost of such resolution shall be divided and paid equally by the parties. In the event that such dispute cannot be resolved by the parties hereto within thirty (30) days, the matter may be referred by mutual agreement of the parties to non-binding arbitration, or by either party to legal proceedings. Neither party may act to terminate this Franchise for cause except at the conclusion of the meeting of the parties held pursuant to this Section 11.5, or in the event the parties have referred the dispute to arbitration, at the conclusion of the arbitration. 12. Renewal. This Franchise may be renewed pursuant to Municipal Code Section 8.23.060 which provides as follows: Where a contract or Franchise has been entered into between the City and an operator and the operator has satisfactorily performed under such contract or Franchise, the City Council, without inviting bids or proposals therefor, may, either prior to or after the expiration of such contract, extend or renew the same upon the same conditions or such other conditions as the City Council may provide. The City Council shall, however, whether considering a contract or a Franchise follows the procedures established by Article XII of the Charter for notice and hearing. Notwithstanding the foregoing, Pacific acknowledges and agrees that Pacific has no right whatsoever to require City to renew or extend this Franchise, and City retains the right, in its sole discretion to decide to renew or extend this Franchise, or not to renew or extend this Franchise. 13. General Provisions. 13.1 Authoritv. Each party represents that it has full right, power and authority to execute this Franchise and to ^DOCNUM' /1-1J-40- perform its obligations hereunder, without the need for any further action under its governing instruments, and that the parties executing this Franchise on behalf of such party are duly authorized agents with authority to do so. 13.2 Assiqnment. Except as expressly provided herein, neither this Franchise, nor any rights or interest herein, shall be assigned by either party. City's prior consent shall be subject to the terms and conditions of City Charter 01203. Any attempted assignment in violation of this section shall be void and shall constitute a material default entitling the other party to terminate this Franchise. In addition, both parties agree to comply with any and all provision contained in the Municipal Code governing the change of ownership of Pacific or the transfer of this Franchise. 13.3 Counterparts. This Franchise may be executed in multiple copies, each of which shall be deemed an original, but all of which shall constitute one agreement after each party has signed such a counterpart. 13.4 Entire Aqreement. This Franchise, together with all exhibits attached hereto and other agreements expressly referred to herein, constitutes the entire agreement between the parties with respect to the subject matter contained herein. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 13.5 Exhibits. All exhibits referred to herein are attached hereto and incorporated herein by this reference. 13.6 Governinq Law. This Franchise shall be governed, interpreted, construed and enforced in accordance with the laws of the State of California. 13.7 Notice. Any notice that may be given to either party under or with respect to this Franchise shall be deemed to have been given when delivered personally or when sent by registered or certified mail, postage prepaid, addressed as follows: PACIFIC: Allied Waste North America, Inc. dba Pacific Waste Services 881 Energy Way Chula Vista, CA 91911 Attn: Rick Berlin, General Market Manager /1-5õ ^DOCNUM^ -41- with a copy to: Allied Waste North America, Inc. 7297 Ronson Road, Suite G San Diego, CA 92111 Attn: James T. Ambroso, District Manager with a copy to: Patrick C. Shea, Esq. Pillsbury Madison & Sutro LLP 101 West Broadway, Suite 1800 San Diego, CA 92101-3302 CITY: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Attn: City Manager with a copy to: City Attorney 13.8 Successors. Subject to the restrictions on assignment and change of ownership contained herein, all terms of this Franchise shall be binding upon, inure to the benefit of, and be enforceable by the parties hereto and their respective heirs, legal representatives, successors, and assigns. 13.9 Uncontrollable CircumstancesUncontrollable CircumstancesUncontrollable Circumstances. Except as otherwise specifically provided in this Franchise, neither Pacific nor City shall be in breach of this Franchise for any temporary failure or delay in the performance of any obligation under this Franchise (other than any payment at the time due and owing) to the extent such failure or delay is due to the occurrence of an Uncontrollable Circumstance; provided. however, the party experiencing an Uncontrollable Circumstance shall not be in breach only if such party complies with the requirements in this Section 13.9. The party experiencing an Uncontrollable Circumstance shall notify the other party by telecommunication or telephone and in writing ("Notice immediately after the party experiencing such Uncontrollable Circumstance first learns of the commencement thereof, followed within forty-eight hours by a written description of (1) the Uncontrollable Circumstance and the cause thereof (to the extent known) and (2) the date the Uncontrollable Circumstance began and the cause thereof, its estimated duration, the estimated time during which the performance of such party's obligations hereunder will be delayed. Each party shall provide prompt written notice of the cessation of such Uncontrollable Circumstance. A party's obligations hereunder shall be delayed commencing at the date of Notice time for only so long as the Uncontrollable Circumstance continues and prevents full compliance with Franchise 'DOCNUM^ /1-S¡ -42- obligations. Whenever such act, event or condition shall occur, the party claiming to be adversely affected thereby shall (a) use its best efforts to eliminate the cause therefor, (b) minimize the adverse impacts caused thereby, and (c) shall take all necessary and appropriate actions, including, if necessary, bringing in labor and equipment from unaffected areas to resume full performance under this Franchise as quickly as possible. 13 .10 Other Governmental Bodies. In the event any value paid to City under this Franchise is to be shared with or otherwise paid over to any other Governmental Body, City shall be solely responsible for transferring such value to such Governmental Body, without any indemnification or any other reimbursement from Pacific or its Affiliates under this Franchise. [Next Page Is Signature Page] 'DOCNUM^ /1-S,iZ-43- [SIGNATURE PAGE TO SOLID WASTE DISPOSAL AND RECYCLING FRANCHISE AGREEMENT BETWEEN CITY OF CHULA VISTA AND ALLIED WASTE NORTH AMERICA DBA PACIFIC WASTE SYSTEMS] IN WITNESS WHEREOF, Pacific and City have entered into this Franchise Agreement effective as of the date first written above. CITY: PACIFIC: City of Chula Vista, Allied Waste North America, a municipal corporation Inc., a Delaware corporation dba Pacific Waste Services By:- Shirley Horton, Mayor By:- Attest: City Clerk [Print Name and Title] By:- James T. Ambroso Approved as to form by Its: District Manager City Attorney C:allied:alliedfin-clean.doc /1-53 ^DOCNUM^ -44- EXIBIT A City of Chula Vista ANNUAL PAYMENT SCHEDULE Beginning July 1 $636,540.00 2 $655,636.20 3 $675,305.29 4 $695,564.44 5 $716,431.38 6 $737,924.32 7 $760,062.05 8 $782,863.91 9 $806,349.83 10 $830,540.32 11 $855,456.53 12 $881,120.23 13 $907,553.83 14 $934,780.45 15 $962,823.86 16 $991,708.58 17 $1,021,459.84 18 $1,052,103.63 19 $1,083,666.74 20 $1,116,176.74 21 $1,149,662.05 22 $1,184,151.91 23 $1,219,676.46 24 $1,256,266.76 25 $1,293,954.76 26 $1,332,773.40 27 $1,372,756.61 28 $1,413,939.30 TOTAL $27,327,249.42 /1-.61 12 Tagging Materials Failure To Tag Or OthelWise Collect On The Same Day [Section 6.2.19] And Properly Dispose Of Contaminated Or Improperly Set $15.00 Out Materials. 13 Equipment Equipment Not Maintained To Franchise Standards. $25.00 Maintenance [Section 6.2.12] 14' Excessive If Total Residuals From Curbside Recycling Program Contamination Exceed 2% And/Or Multi-Family Recycling Program Exceed 4% Of Total Material Collected In A Quarterly $250.00 Allocation Study Plus Incremental Residual Disposal Cost For Quarter. 15 Improper Disposal When Materials Collection From Source Separated [Section 6.2.14] Program Intended For Diversion Are Disposed Of At A Landfill Or Transformation Facility Without Prior City Approval. Up To First Ton: $50.00 Every Ton Or Part Of A Ton Thereafter: $50.00 16 Excessive Violations Damages Amount Increase When Contractor Has Received A Penalty For A Particular Service Indicator More Than 15 Times Per Quarter. After 15 Violations In A 15% per Category, The Damages Amount Will Increase By An quarter Additional 25% For Each 5 Additional Penalties. 'Footnote to Box #14: The City agrees to meet and confer with Pacific Waste Services to review cause due to activity in the field, such as proposed services/automation 1. Cross References. Where an unsatisfactory service indicator includes a cross-reference to a Section of the Franchise, any additional or inconsistent performance standards set forth in this Schedule shall govern. 2. Followina Dav Obliaations. In each case where a cure for unsatisfactory performance can be rendered within a specified time period, if the expiration of such time period falls on a non-business day, Pacific's right to cure shall be extended until the following business day. 3. Penalties for Additional Davs in Breach: Minor Violations. Pacific may obtain relief from "Each Additional Day Late" damages by providing notice to City of the problem and by diligently proceeding to cure the problem as quickly as possible, subject to City's approval. The City will not unreasonably withhold a request for additional time to cure. In addition, minor occasional violations with advance notice from Pacific and prompt cure may be excused at the discretion of the City Manager. 4. Riaht to Appeal. Pacific will have the right to appeal any City Assessment to the City Manager. 5. Sinale Assessment. Where a single operational failure may potentially constitute multiple violations, such failure will constitute only a single violation, subject to only one penalty. /76-~ EXHIBIT B I Enforcement Summary I The parties agree that calculating damages caused by Pacific's failure to adhere to performance standards is difficult if not impossible to ascertain. Consequently, the parties agree that the following liquidated damages schedule shall reflect liquidated damages that shall be payable to City in accordance with the terms hereof, and Section 11.2 of the Franchise. # Unsatisfactory Penalty Service Indicator Description Amount 1 Missed Pick Up Failure To Collect Missed Pick-Up By The End Of The Next $15.00 Response Time Business Day After The City Notification. [Section 6.29] Each Additional Business Day After Receiving Notification $25.00 From City. 2 Failure To Respond Failure To Make A Good Faith Effort To Resolve Customer $15.00 [Section 6.2.16] Request By Next Business Day. 3 Improper Imposition Franchisee Charges For A Special Service Not Included In $500.00 Of Special Service Exhibit F Or By Prior City Written Approval. [Section 2] 4 Spillage Or Litter Failure To Make A Good Faith Effort To Clean Up Spillage $15.00 [Section 6.2.13] Or Litter Within 90 Minutes After Notification By The City Or Customer. 5 Processing Claim Failure To Respond In Writing To A Damage Claim Within $100.00 For Damages 30 Days Of Receipt And Initiate A Process To Resolve. 6 Remitting City Fees Failure To Remit City Fees By The 22"0 Of The Month. 1 Y:.% of the [Section 4.1.2] Amount of Late Payment 7 Providing Reports Penalty Assessed For Not Providing All Reports By The $100.00 [Section 6.2.20] 22"d Of The Month. Recycling Revenue Reported Will Always Be 60 Days In Arrears. Each Additional Day Late: $15.00 8 Billing Problems Failure To Resolve A Billing Complaint Within 50% Of The $25.00 [Section 6.2.16] Billing Cycle Time Period. Each Additional Day Problem Not Resolved. $5.00 9 Container Supply Failure To Repair Or Replace Inoperable Containers/Bins $25.00 [Section 6.2.3] Within Fourteen Working Days Of Request. Each Additional Day Problem Not Resolved. $5.00 10 Unauthorized Contractor Operating During Hours Not Previously $100.00 Operating Hours Authorized By City [Section 6.2.1] 11 Sub-Contractor Failure To Deliver Material To ORW Or Other City Provisions Approved Sub-Contractor For Yard Waste, By End Of Their Scheduled Working Day On the Same Day As Collection, $100.00 Or If Not Reasonably Possible By The Following Business Day: Per Vehicle Load: /1~s-S- EXHIBIT C Construction Demolition Guidelines The fees, vehicles and safety equipment used for collecting standard household waste are not designed to handle large quantities of construction or landscape debris. When building, remodeling or re-landscaping homeowners shall be encouraged by City and Pacific to reuse materials on site whenever possible. When homeowners cannot reuse the materials on site they should contact Pacific Waste Systems to request an appropriately sized demolition Recycling or waste bin. Small Quantity Generators may also haul the waste to an appropriate recycler or landfill themselves. Construction and demolition debris is not considered standard Residential waste. Household waste service is not an acceptable means of disposing of landscape or demolition debris in excess of 200 pounds. When disposing of small quantities of demolition or landscape debris please observe the following guidelines: 0 A small quantity of rock, bricks, dirt, wood or other demolition debris that is generated as an incidental part of regular home occupancy will be collected as long as the driver believes it is safe for him and the equipment to do so, 0 The material must be free of protruding nails, glass or sharp objects, 0 The demolition debris must be less than 10% of the total waste being collected and the Pacific Collection personnel makes the final determination regarding the 10% limit, 0 Standard, manual trash containers must weigh less than 60 pounds when collected and an automated container must weigh less than 250 pounds (or the maximum weight identified on the container by manufacturer) when collected, 0 Wood must be free of nails, glass or sharp objects and cut into four foot lengths or less and placed into a waste receptacle or tied into bundles weighing less than 35 pounds each, 0 Non painted or treated wood should also be free of nails or sharp objects and should be bundled and placed as Yard Waste not trash. 0 When quoting a demolition Roll-off or bin for concrete/asphalt, clean dirt and wood the customer shall be instructed to keep the items separate from each other and regular Garbage so it may be recycled not land filled. 0 Pacific shall sponsor the "Free Landfill Passes" program. ^DOCNUM' -1- /1-6"/ EXHIBIT D Free Bulky pick-Up Policy Small Quantity Generators The program is intended to provide Small Quantity Generators with free Collection service for bulky items generated from the "standard" Residential use of a single family dwelling. The "standard" is based on the number, frequency and type of items generated. Items that do not meet that standard may be subject to additional fees. 0 Free service includes up to one free service stop per week for non-hazardous, non-infectious household bulky items such as a sofa, chair, mattress, lawn furniture, barbecue, or appliance than can be easily and safely moved by hand or hand truck. Free bulky service does not include items brought from another location or generated from a business such as an auto mechanic or upholstery business conducted at home. Such items will be subject to a fee of up to $3 per item or $25 per half hour. 0 Collection of more than 10 household bulky items in any week, or 60 items in any 90 day period may be subject to a surcharge of up to $3 per item or $25 per half hour charge. 0 Pacific shall provide service on an on call basis, with 48 hours notice from the customer on the next regular Residential trash service day for that residence. 0 Whenever possible, the customer should dismantle or break down items so they may be easily and safely collected. Each items shall weigh less than 60 pounds if they need to be removed by hand. 0 Items over 60 pounds shall be prepared by residents so they can be safely collected on a hand truck. Collection of items that cannot be safely collected with a hand truck may be subject to a fee of up to $25 per half hour or may be tagged with an explanation and left. 0 Collection on any day other than the standard Refuse and Recycling day is subject to an initial service charge of up to $25 for up to the first five items and up to $3 for every additional item. 0 Loose construction demolition, Yard Waste and other items are not considered bulky items and should be properly recycled or disposed of at a permitted drop-off facility or the customer may subscribe to temporary Roll-off Box/Bin Collection service as appropriate. 0 Pacific shall sponsor the "Free Landfill Passes" program described in Exhibit D-1 attached hereto. ^DOCNUM^ /1-s¡}- 0 Small Quantity Generators shall be eligible for two (2) Free ORW Service Passes per year. The pass is limited to one standard truck load of material. This tonnage does not count against City's 5% annual free tonnage allowance. "DOCNUM" -2-/f-!Ç/ Free Bulky Pick-Up Policy Larqe Quantity Multi-Family Generators D The free program is intended to collect only those items generated from the dwelling Units as a part of normal Residential use. D Pacific shall provide up to one free service stop per month for non-hazardous, non-infectious materials such as a sofa, chair, mattress, lawn furniture, barbecue, or appliances that can be easily and safely moved by hand or hand truck. Free Collection does not include construction & demolition debris. D Free Service is to be provided on an on call basis, with 48 hours notice from the customer. D Collection to be performed on the same day as Residential Trash for their service area. D Items shall be dismantled or broken down so they may be easily collected and loaded. Items shall weigh less than 60 pounds if they need to be removed by hand. Items over 60 pounds shall be prepared by residents so they can be collected on a hand truck. Example: carpet shall be cut into four foot widths, rolled into sections weighing under 55 pounds and secured with twine or packing tape so that it can also be moved by a hand truck. D All items for one complex must be ready for Collection at one time and at one location in the complex that is accessible to the Pacific bulky Collection vehicle. Location to be established at the time of 48-hour notice. D Free Collection is limited to up to 5 items for every ten Units in the complex. (ie, a building with 11 Units gets up to 10 items a building of 21 Units gets up to 15 items) . D Collection of more than the standard number of items will result in a charge of up to $3 per item. Additional items that are not collectible by hand-truck will be subject to a $25 per half-hour charge. 0 Collection on any day other than the standard day may include a service charge of up to $25 for up to the first fiye items and up to $3 for every additional item. 0 Loose construction/demolition, Yard Waste and other items are not considered bulky items and should be properly recycled or disposed of at a permitted drop-off facility (see demolition guide) or the customer may subscribe to temporary Roll-off Box/Bin Collection service with Pacific as appropriate. ^DDCNUM^ -3- 1;7-¿ ¿J EXHIBIT E Proposed Set Out Fines First Contact - Generator to be tagged and served. Item(s) should be collected either as a recyclable, bulky item or trash on the same day as regular service unless the Collection of items would be hazardous to Pacific personnel or equipment or their Collection is specifically prohibited by federal, State or local law. The tag should identify the specific violation (Pacific) shall preserve the stub demonstrating proof of notice for three (3) years). Information on trash, Recycling, Yard Waste or bulky Collection shall be left with tag to instruct customer on future set outs. Second Contact - Generator receives a tag only (preferably marked 2nd request) Third Contact - Generator receives a tag (preferably marked 3rd request). Information is forwarded to City. City shall then send a letter and instruction regarding violation and warning of fine to customers and fax a list of addresses notified to Pacific. Pacific shall continue to tag address if necessary and forward information to City. Fines - A first fine may follow no sooner than 15 days after notice from City. The first fine shall be up to $3 per applicable service. A second fine shall be up to $5 per applicable service. A third fine and each fine thereafter shall be up to $10 per applicable service. Substantiated fines are part of the regular Refuse fee and are subject to collection in the same manner. /7-t/ 'DOCNUM' EXHIBIT F General Reportinq Requirements Quarterly and annual reports shall include a cumulative and up to date accounting of the monthly report form included in this Exhibit F. They shall also include the market price received for each commodity in the Quarterly and Annual Reports (quarterly average is acceptable). The weight receipts and market value for material at the time sold shall be available for inspection by City upon request under the provisions outlined in Section 4.1.3 regarding right to audit. Pacific shall not be expected to include actual revenues for the most recent month in the monthly reports however they shall make a good faith effort to include them in the quarterly reports. Pacific shall update actual revenue no later than the first monthly report due date or the 22nd day following the end of the quarter. The Quarterly and Annual Reports shall also include a summary of customer service inquiries taken by Pacific Customer Service Staff for Chula Vista. The report shall include an outline of any future operational or customer service adjustments that may be necessary to reduce or eliminate the general type of service inquiry or complaint in the future. Additionally, the annual report shall include recommendations for future changes in Collection or customer service operations that may contribute to an increase in the potential diversion of recyclable or reusable material from landfill disposal. Finally, the monthly, quarterly and annual reports shall also include any additional information necessary to meet State and/or Federal mandated reporting requirements that apply to Pacific's or their sub-contractor's Collection, Processing and or disposal of material under the franchise agreement. 'DOCNUM^ /¿'-¿ c:< PROPOSED RATE SCHEDULE CHULA VlSTAFRANallSE EXIllBITG MAXIMUM RATES GENERAL SERVICE RATES SERVICE TVPE, 1991 "" CPI NEW FRANC AB'" I'" A. SMALL QUANTITV GENERATOR, RATES OPS 1.25" OPS '" 2% RATES RESIDENTIAL .SINGLE UNIT TRASHlRECVCLINGIYARD WASTE 13.20 1200 0.15 12.15 0.97 0.24 13.37 RESIDENTIAL. SENIOR TRASHIRECYCLINGIY ARD WASTE 7.28 6.61 008 669 0.54 013 7.36 RESIDENTIAL MULTI.FAMILV UP TO AND INCLUDING 4 UNIT5 I UNIT 13.20 12.00 015 1215 0.97 0.24 13.37 AoomONAL UNITS 1D 4 UNITS MAX 10.17 9.25 0.12 9.36 0.75 0.19 10.30 MOBILE HOME PARKS + MOTELS MINIMUM PER MONTI! 24.65 2241 028 2269 182 0.45 24.' (CENTRAL lOCATION) THAlLER PARKS PER UNIT ONE COLLECTION WEEKL V 10.17 9.25 0.12 9.36 0.75 0.19 10.30 (INDIVIDUAL CAN SERVICE) COMMERCIAL IINDUSTRIAL SMALL GENERATOR (UPTO 2. '"GAL CONTAINERS) ONE TIME WEEKLV ON RESI SERVICE wTTIf TRASH ONLY 12.04 1095 014 11.08 0.89 0.22 IT." ONE TIME WEEKLY ON RES! SERVICE wTTIf TRASH AND BLUE BOX RECYCLE 12.51 1138 0.14 11.52 0.92 0.23 12.68 ONE TIME WEEKLY ON RES! SERVICE WITH TRASH AND YARD WASTE 13.87 1261 0.16 12.77 102 0.26 14.04 ONE TIME WEEKLY ON RES! SERVICE wTTIf TRASHIRECYCLElYD WASTE 14.35 13.05 0.16 13..21 106 026 14.53 ONE TIME WEEKLY Wlli! TRASH ONLY 13.15 11.95 0.15 12.10 0.97 0.24 13.31 TWO TIMES WEEKLYWlli!TRASH ONLY 23.62 2147 0.27 2174 174 043 23.92 THREE TIMES WEEKLY wTTIf TRASH ONLY 34.85 31" 0.40 3208 2.57 0.64 35.29 NON REGULAR SCHEDULED PICKUP .COMMERCIAL HAND PICKUP ".00 909 0.11 9.20 0.74 0.18 10.13 B. LARGE QUANTITV GENERATORS, COMMERCIAL I INDUSTRIAL LARGE GENERATOR, I X >YD X IIWK BASIC SERVICE 70.65 64.23 O.HO 6503 520 130 71.53 I X >YD X IIWK EXPANDED SERVICE SO." 7355 0.92 74.4<> 596 149 II." I X 3VD X IIWK BASIC SERVICE 76.79 69.11 0.87 70.68 5.65 141 77.75 I X 3VD X IIWK EXPANDED SERVICE 87.94 7995 100 HO.94 6.48 162 89.04 ( SEE ATrACHED SCHEDULE FOR PRICING MATRIX) I X4YDX IIWKBASICSERVICE 102.39 9308 116 9425 7.54 I." 103.67 I X4YDX IIWK EXPANDED SERVICE 117.25 10659 133 107.92 8.63 216 111.72 I X 5VD X IIWK BASIC SERVICE 127.98 116.35 145 m8O 9.42 2.36 129.58 I X 5YD X IIWK EXPANDED SERVICE 146.57 13325 1.67 13491 1079 2.70 141.40 I X 6YD X IIWK BASIC SERVICE 153.58 139.62 175 14136 1131 2.83 155.58 I X 6VDX IIWK EXPANDED SERVICE 175.81 15989 2.00 161.89 12.95 3.24 171." EXTRA PICKUP CHARGE. COMMERCIAL CONTAINER SERVICE 40.00 36.36 045 3682 2.95 0.74 40." RESIDENTIAL MULTI.FAMILY STO' UNITS TRASH RATIIS. 3YD X I!WEEK 76.79 69.81 0." 7068 5.65 1.41 77.75 5.9 UNITS RECYCLING BLUE BOX RATIIS I UNIT 0.41 OA4 0.01 045 0.04 0.01 0.49 5.9 UNITS RECYCLING CART RATIIS I UNIT 0.67 0.01 0.68 0.05 001 0.75 (ADDED TO COMMERCIAL TRASH RATIIS) RESIDENTIAL MULTI.FAMIL V 10 UNITS AND ABOVE TRASH RATIIS. 3YD X I!WEEK 76.79 69.81 W 7068 5.65 1.41 77.75 10 UNITS AND ABOVE RECYCLING CARTIUNIT 1.41 135 0.02 1.36 0.11 003 I." (ADDED TO COMMERCIAL TRASH RATES) /1-t 7---./ GENERAL SERVICE RATES C. INDUSTRIAL GENERAIDRS, 199' "98 CPI 1», FRANC AB'" "99 RATES DPS I.2S% OPS 'V. 2% RATE COMPA PERMANENT . HAUL PORTION 170.50 15500 194 156.94 12.56 3.14 172." DISPOSAL EXTRA AT "OOOrroN COMPACTOR SALES ro BE NEGOTIA"ŒD ON A PER ACCOUNT BASIS FREE DELIVERY ON CONTAlNE" ONLY ROLLO OPEN IDP. PERM HAUL PORTION 121.00 110.00 1.38 m38 8.91 223 122.51 FREE DELIVERY DISPOSAL EXTRA AT "OOOrroN' TAXES OPEN TOp. TEMP HAUL PORTION 132.00 12000 150 12150 972 243 133." DELIVERY CHARGE DISPOSAL EXTRAAT"OOOrroN <TAXES OPEN TOp. HAUL PORTION 107.80 9800 L23 99.23 7.94 198 I09.1S MULTI HAUL ACCOUNTS ONLY DELIVERY CHARGE ON FIRST HAUL ONLY DISPOSAL EXTRA AT "O.OOlrON' TAXES C.O.D. HAIlL + DISPOSAL "'.00 350.00 4.38 354.38 28.35 709 "'.81 7 TON MAXIMUW OVERAGE CHARGE APPLIES AT "O.OOIrON RA"Œ > TAXES DELIVERY CHARGE 27.50 25.00 0.31 25.31 203 0.51 27.84 SAME DAY SERVICE REQUEST UNTIL ',OOPM 44.00 40.00 0.50 40.50 3.24 0.81 44.85 ROLL-OFF CONTAINER DAILY RENTAL '.'0 3.00 0.04 3.04 0.24 0.06 '.J< (AITER JO DAYS WITHNO HAUL) ALL RECYCLING MATERIAL IS CHARGED A PASS THROUGH OF PROCESSING FEES AT TIME OF DISPOSAL ANY DISPOSAL CHARGES DUE ro CONT AMINATIUN WILL BE PASS THROUGH A REBA"Œ IS OFFERED AT 50% OF THE MARKET VALUE OF THE RECYCLABLE MA"ŒRlALS (NET OF PROCESSING FEES) ALL DISPOSAL TIP PEES ARE SUBJECT ro ANNUAL 66.66% CPI INCREASES AITER 3 YEARS ALL DISPOSAL TAXES INCLUDE FRANCHISE (8%).ANO AB939(2%) CREDIT CARDS SERVICES ARE OFFERED FOR ALL ROLL.OFP SERVICES. ON ACCOUNT. WITH A $500 SERVICE FEE FACIFICWASTE.A DIVISION OF ALLIEDWAS"Œ. WITH NATIONAL REVENUES OF 12 BILLION ANNUALLY. IS COMMrrrEDro PROVIDING THE NECESSARY CAPITAL TO SERVICE CHULA VISTAS ROLL.OFF FRANCHISE NEEDS THE STANDARD TIJRNAROUND TIME ON ALL ROLL.OFF SERVICE IS 24 HOURS / 1~ t:~ D. MISCELLANOUS EQUIPMENT AND SERVICE RATES, COMMERCIAL, "" 1998 1999 FRANC AB9J9 1999 RATES OPS OPS 8% 2% RATE LOCK ON TRASH BIN 5.00 455 4.55 036 0.09 5." CONTAINER EXCHANGE AFTER COMPLIMENTARY ANNUAL 49.SO 4500 45.00 3.60 090 49.SO EXCHANGE. (PLEASE GIVE 30 DA YNGilCE FOR REQUESTS) COMMERCIAL JUNK PICKUP PER ITEM 25.00 2273 22.73 1.82 0.45 25.00 DEODORIZING PER CONTAINER 6.00 5.45 5.45 0.44 0.11 6.00 GREEN W ASfE RECYCLING I X IfWEEK SI.SO 4<\.82 4682 375 0.94 SI.SO I X2!WEEK 103.00 93.64 9364 7.49 1.87 103.00 I X !lBI-WEEKLY 17.75 25.23 25.23 2.02 0.50 27.75 COMMERCIAL RECYCLING I X I/WEEK 25.00 2273 2273 1.82 0.45 25.00 I X !lBI-WEEKL Y 21.00 19.09 19.D9 1.53 0.38 21.00 REPLACEMENT 3YD CONTAINER DUE TO REPEATED CUSTOMER 600.00 545.45 545.45 43.64 10.91 600.00 ABUSE EXIRA CHARGE FOR PERSONALIZED CONTAINER PURCHASE MARKEr DlFF ABOVE 600.00 RESIDENTIAL, TOTER" GALLON RENTAL FOR WASTE 2.00 1.82 1.82 W 0.04 LOO TOTER" GALLON RENTAL FOR GREENWA'1'E 1.00 0.91 0.91 0.07 0.02 1.00 TEMPURAR Y 3 YO CONTAINER AT RESIDENTIAL UNIT 125.00 113.64 113.64 9.09 2.27 125.00 INCLUDES I DUMP AND A 30 DAYTIME LIMIT ON CONTAINER REPLACEMENT "GAL CART OUE TO REPEATED CUSTOMER 75.00 68.18 6818 545 136 75.00 ABUSE INOUSTRIAL, COMPACTOR CONTAINER WASH-Our 75.00 om 6m <.45 136 75.00 RELUCATION UF CONTAINER 75.00 6W 6818 5.45 136 75.00 DRY RUN CHARGE 50% UF HAUL RATE OTHER, BULKY PICKUP CU'1' 2.73 0.22 0.05 3.00 OVER AND ABOVE THE MAXIMUM ALLOWABLE PICKUPS UNDER THE SMALL GENERATOR AND MUL TI-PAMIL Y PROGRAMS E. OPTIONAL SERVICES NOT SUBJECf TO FRANCHISE PEES, CPI~ 2.5% sroRAGE VANS MONTHLY RENTAL 95.00 "DO 2.38 97.38 DELIVERY CHARGE 25.00 25.00 063 25.6J REMOVAL CHARGE 25.00 25.00 063 25.6J LA VAL LOCK 75.00 7500 L" 76.88 NOTE, ALL 1998 RATES ARE THE MAXIMUM RATES APPROVED BY CITY COUNCiL COR THE PERIOD IULY I. 1998 TO JUNE 30.1999 ALL 1999 RATES ARE THE MAXIMUM RATES APPROVED BY CITY COUNCIL FOR THE PERIOD JULY I. 1999 TO JUNE 30. 2000 //-iL;! cm OF CHULA VISTA RATE TABLE EFFEenVE n" COMMERCIAL TRASH RATES 'VDCONmNERSERV<CE NO COUNTY AVERAGE AmUSTMENT BASIS SER'nCE I I D "'.78 "'.81 SO." '78.08 "." 'w '77.78 EXPANDED SERV I I " "7.94 "'" '1.00 "'.94 "'" ,.." ",." BASIS SERVICE I ' 26 $IS,",O "'O" "'51 ""." $9.78 "... ",.... EXPANDED SERV I ' 26 'm.50 $IS'" ,.." ",.." "'" "81 nsw BASIS SERVICE I ' " SlOW mO.D ,w "7'-'5 "'-78 "., SIO'.'" EXPANDED SERV I ' " ,m." """ "." US"" "'." "." "'W BASIS SERVICE I ' " ""."' """ ".so ""... "." "." ""." EXPANDED SERV I ' 52 ""-OS """ ".22 "".57 "0.85 $S." "'U, BASIS """VICE I ' " "".22 "76." "." "'0." "'" $S" "'"." EXPANDED ",,"V I ' " ""." '71790 ".S7 ",.." ,,5.75 ".... ""." BASIS SER'nCE I ' 78 "".00 ""'I ,W "".05 "'SO "70 ",".55 EXPANDED SERV I ' 78 "".50 ""'" ".so """." SILO ,m '427.78 BASIS """VICE I ' " ""'"" "".1' "." "".01 SIL," "" ""5.01 EXPANDED ",,"V I ' " ,m." """.76 ".SO "5'-" "'" "" "".SO BASIS ",,"VICE , I 26 - '127.1' "." "'"-" "O." "SO ,w." ~ EXPANDED ",,"V , I 26 ~ ",." ,UO "50.78 "'.06 ..." 'I OS."' BASIS """VICE , ' 52 ~ """ ".S> "'w "'" "78 "".OS EXPANDED ",,"V , ' 52 ~ "".71 "." "".S7 "112 "'" "'o~, BASIS SERVICE , ' 78 ~ "".0 ".OS "".1' "'" "52 "SO.75 EXPANDED ",,"V , ' 78 ~ "'I." ".52 "OS."' "'.27 "." ""." BASIS ",,"VICE , ' I" ~ "'0.0 ,m 'm." "'OS "" "'7." ""'ANDED ",,"V , " " ~ "'""' "."' "".07 "'" "" "22." BASIS ",,"VICE , ' 13° ~ 'm26 ".57 '5.H." "'.55 "'.. "05.01 EXPANDED ",,"V , ' 13O ~ """ ".15 ""." "'" "", "'7." BASI'SERVICE , " 50 ~ ",." ".'" ",0.t4 SSL" "'" "10.75 EXPANDED SERV , " 50 ~ """ "." "04.11 '50." """ $77'-" BASIS SER'nCE , 7 '"' ~ 'm.o' "" "'0." "0.'" "'" "".51 EXl'ANDEDSERV , " "' ~ ""." '10." """" "'OO "'" "".so BAS" SERVICE , I " ""'" "~I SlOW ",." "-" "0"" EXPANDED SERV , I " "I"" ,W """12 "'" 'H' ""'." BASIS SER'nCE , , '" "30." $<I.IS "".1' "'" ".. "".SO EXPANDED SERV , , '" ,m.. $<I." "70." "'" "50 "I'"' BASIS """VICE , , m "6171 ".77 "'7.," "'" ".75 "1'-" EXPANDED ",,"V , , m """ "." '565.27 "'" $H.'I "".so BASIS """VICE , 3 '" """ "." ""." "'" "'A' ".W EXPANDED ",,"V , 3 I" "7096 '"." "70J? "'" "'59 ""." BASIS SERVICE , , I" """ "." '777." $021' SIS." ,"".70 EXl'ANDEDSERV 3 , L95 """ $10." "'7.20 '66.," "'" "'°.99 BAS" 'ERVlCE 3 , '" ,w'" $1U' "'US "OS, m.I' '1.0"'." EXl'ANDED SERV , , '" "70.," $1W "".1' '7865 "'-66 'I."'.'" BA"S SERVICE , " " $1."'.56 ".17596 $1m '1,1".1' "'"I "'.00 $I."5.IS EXl'ANDED SERV , ' 273 $1.,"4.19 $1."7." $I,"" '1.102." "." "3." $1,300." /1- ts B"""""mCE 4 I. " "'W ""OJ '>.04 "".08 929.69 $4.92 $170." EXPANDED "'RY 4 I " ,,!..,. ""."" "." """" "3.15 $5.79 """ B"'" "ERVICE , " " ""." "21." 'W ""." "'" "" ""." EXPANDED "ERV , , '" "76.73 "." "S2." ',"OJ ".OJ "-'0." B""'","VICE .. 3 15' ""'." ".60 "".00 "9" 922." ""-60 EXPANDED ","V .. 3 I" "76" "." ""." "'.78 Sl3.70 "'-'.,, B"'" "ERVICE 4 4 2"' ""'" 92W "".OJ '00.93 92'.73 "'°.27 EXPANDED "ERV , .. '"' '""" 'W.OI ""." "O OJ "'" ""." B"'" 'ERVICE , , "" 92.""70 "'.11 92.0OJ.OI """ ,n" 92."'.99 EXPANDED ","V " '" "-",... SI3.>I 92,0""91 "'" "'" 92,1".70 BA"'" "ERVICE , , m 92.m" m." 92."'-" 92OJ.OO '95.75 92,"'.19 EXPANDED 'ERV , , m 92."'." 92'-01 92,3".24 920762 "'" 92,m." B"'" "ERVICE 4 , 3" 92.4"" SIO." 92,m." 92nOJ '79." 92."'-" EXPANDED'ERV , , 3" "-,,'"" 929." 92.S70." ,m" mAl ","'"01 B"'" "ERVICE , I 6' ""." s.w "02." ."" "" ""." EXPANDED'ERV , , " "'"" ,,~, "".08 ',"AO "" "90." B""'","VlCE , , 13" $536" ".70 ""." $43" "", "".27 EXPANDED ","V , , DO '58'.29 "~4 ""." "'" 921.89 "".W B""'","VlCE , 3 '" "7841 "." ",W "3." $IS" ,so,." EXPANDELo "ERV , 3 I." """ "." ,m.>I "3.79 SI5" ,,""OS B"'" "ERVICE , , "" $1..02'" "'.so 92.041." "3." """ 92,1".66 EXPANDED ","V , 4 "0 92.08"53 Sl3.20 SI,O,,"" "'" "I" SI,I8W B""'","VICE , , '" $I.."'" "'-90 SI."'." 92OJ.06 '95.'6 SI.4!2.07 EXPANDED "ERV , , '" '1.38292 92W SI."O." 921902 "'.00 SI."o." B""'","VICE , , 79' 92.""79 '19.01 n,s,,",o '123.10 "0'" SI,"'." EXPANDED ","V , , '" ',",,'" "°." $1."'." SI"" "'" $I,"'." B""'","VICE , , m SI.'" " $22." $I,"'." $143.01 "U, ",02'-'9 EXPANDED ","V , , m $1.""14 "3.09 $I."'." """ "'.40 ",OS,"" B"'I'","VICE 6 I " """ ".4.> "".S> """ ".18 "94." EXPANDED "'"V Ó , " "1.613 "." ",'-" "331 "" ""." B"'IB","VICE 6 , 156 '6-1.1.32 ".02 "49." 'SI." Sl2.99 "".22 EXPANDED "'"V " , I." ""',, '0.61 "".48 moo "'" ""." B"'IB","VICE Ó , "" """ SII." "".00 """ "'" $1,"'"0 EXPANDED ","V 6 , "" """ $I,"" "".90 ",6-1. $19.66 $1,081.26 B""'","VICE , , '" $1.,"0," "'.01 n.m.99 """ ",." $1,"'"59 EXPANDED "ERV 6 4 '" SI."'" ",." SI,29W SlOJ.," '95" $1,420." ."'" "ERVICE , , 790 $1.401.69 $I'." $1."°.21 SI,"", '79.00 $I,"'." EXPANDED ","V , , '90 SI.m49 "°.22 SI,"'-" ,m", ,m, n."w """","VICE , 6 '" $I.",." "'.21 SI,"'." Sl4309 "'" $I."'." EXPANDED "ERV , 6 ". SI."9" ",." ",°".10 Sl6W $40.'" ",m." B"'IB","VICE , " " ","'." ',""94 "'.12 "."'.08 "'9'" $42" ".m." EXPANDED "ERV , " " "."1.92 IVIO.", ",." ",m." SI'W $46.'" ",m." /l-t j.. EXHIBIT B . Upon issuance of the conditional use permit by San Diego County for the expansion of the Otay Landfill ("Expansion), Otay will donate a 54-acre parcel adjacent to the Otay Landfill to the City. . Upon issuance of the final permit of the Expansion, Otay will pay the City a development fee of $4,000,000 payable in annual installments of $1 ,000,000. This amount shall be subject to reduction to the extent the final Expansion is for less than 725 feet, such formula to be mutually agreed upon by City and Pacific. . Otay will assist the City in annexation of the donated parcel at the City's cost. . Otay will grant the City an easement, at not cost, for the extension of Pas eo Ranchero Road. To the extent that easement property could be used as mitigation land for the landfill expansion project, the City shall cooperate with Otay in identifying potential alternative mitigation sites or mechanisms for satisfying such obligations. . Otay will grant the City an easement at no cost to allow emergency access to Maxwell Road from the donated parcel. . Otay will collect litter and perform sweeping on certain roads near the Otay Landfill. . Otay will develop and implement mutually agreed upon dust, noise and bird mitigation plan. . Otay will develop and implement a phased landscape plan approved by the City designed to mitigate the visual impacts of the landfill and to compliment Wolf Canyon vegetation. . Otay will develop and implement a contouring plan approved by the City that compliments the landscape plan and is designed to mitigate visual impacts of the landfill. . Otay agrees that soil stockpiles shall not at anytime exceed the final allowable height of the landfill. . Otay shall exercise good faith efforts to increase its existing gas recovery or develop a new gas recovery with respect to methane production in an effort to eliminate the need for a flare system. . Otay agrees to protect vernal pools at the Otay Landfill . Otay shall convert certain vehicles and equipment to a clean fuel source, subscribe with a California E rated clean fuel energy provider for its on site electrical power needs, and provide a price preference for future sub-contracts that encourages the use of CA E rated clean fuel sources for equipment, fuel and energy. . Otay will develop and implement a gate check procedure designed to avoid improper designation of waste to Chula Vista from outside the jurisdiction, commingling of Solid Waste with that of other jurisdictions, litter and improper or illegal disposal. . The City agrees to meet and confer with Otay Landfill ¡nc.,/Allied outside of the project permitting process in order to address City Concerns regarding visual impacts of the proposed landfill expansion. /1-&1 ORDINANCE NO. 2792 AN ORDINANCE OF THE CITY OF CHULA VISTA GRANTING A WASTE MANAGEMENT FRANCHISE RENEWAL TO PACIFIC WASTE SERVICES THROUGH SEPTEMBER 4, 2007 WITH AN OPTION TO EXTEND UNTIL THE YEAR 2015 SUBJECT TO SATISFACTORY PERFORMANCE, AND POTENTIAL ADDITIONAL EXTENSIONS AT CITY'S SOLE OPTION UNTIL THE YEAR 2031 IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE FRANCHISE AGREEMENT, AND AUTHORIZING MAYOR TO EXECUTE SAME WHEREAS, City is a chartered city within the meaning of California Constitution Article 11, sections 3 and 5 and has reserved its powers pursuant to California Public Resources Code section 40000 et seq. to grant an exclusive solid waste and recyclable franchise; and WHEREAS, in 1982, pursuant to Article XII of the City Charter and Chapter 8.24 of the Chula vista Municipal Code, city granted a solid waste disposal franchise ("Original Franchise") to Chula vista Sanitary Service ("CVSS"); and WHEREAS, since 1982, the Original Franchise has been amended as follows: (1) Ordinance No. 2104, adopted February 28, 1985: (2) Ordinance No. 2332, adopted September 12, 1989; (3) Ordinance No. 2427, adopted December 4, 1990; (4) Ordinance No., 2429, adopted December 11, 1990; (5) Ordinance No. 2475, adopted september 3, 1991; (6) Ordinance No. 2562, adopted July 20 1993; (7) Ordinance No. 2569, adopted September 21, 1993; and (8) Ordinance No. 2741 adopted August 11, 1998; and WHEREAS, on May 12, 1987, pursuant to City Council Resolution No. 13019, City approved an assignment of the Original Franchise to Laidlaw Waste Systems, Inc. ("Laidlaw"); and WHEREAS, on June 17, 1997, pursuant to City Council Resolution No. 18705, City conditionally approved Laidlaw's assignment of the Original Franchise, as amended, to Pacific. One of the conditions of approval was that Pacific enter into negotiations with City staff regarding various city issues with the franchise prior to September, 1997 when the City was scheduled to consider Pacific's request for a five year renewal; and WHEREAS, on August 26, 1997, pursuant to City Council Resolution No. 18763, city approved a month to month extension of the original Franchise pending further City review and consideration of Pacific's requested five year renewal; and WHEREAS, on August 8, 1998, the city Council approved a franchise renewal with Pacific Waste on the terms and conditions of the current Franchise Agreement; and /1 CL-- - / WHEREAS, the current solid waste and recycling Franchise Agreement expires on September 4, 2002 and in anticipation of the end of that agreement, staff has negotiated with Pacific Waste Management to develop the terms and conditions for a proposed renewal on terms and conditions specified therein; and WHEREAS, on June 8, 1999, pursuant to City council Resolution No. 19480, city approved a resolution of intention to consider the adoption of a Franchise renewal and set a public for such purpose for June 22, 1999 at 6:00 p.m.; and WHEREAS, on June 22, 1999, a duly noticed public was held on the proposed Franchise renewal, and all public testimony was reviewed and considered by the City Council, including the city Manager's recommendation to approve the Franchise; and NOW, THEREFORE, the City council of the city of Chula vista does hereby ordain as follows: SECTION I: In accordance with Chu1a vista Municipal Code Section 8.23.070, Pacific's performance under the current Franchise is hereby deemed satisfactory for purposes of renewing such franchise pursuant to the terms and conditions of the new Franchise presented by City staff. Any and all protests or objections presented to the granting of the Franchise are hereby overruled. SECTION II: Upon Pacific's written acceptance thereof, the City Council of the city of Chula vista does hereby grant a Franchise Renewal to Pacific Waste Services through September 4, 2007 in accordance with the terms and conditions of the Amended and Restated Solid Waste Disposal and Recycling Franchise Agreement, a copy of which is on file in the office of the city Clerk ("New Franchise Agreement"). SECTION III: The Mayor of the City of Chula vista is hereby authorized to execute the New Franchise Agreement on behalf of the city of Chula vista in substantially the form presented, with such minor, non-substantive, modifications as may be approved or required by the city Attorney. SECTION IV: This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. SECTION V: The City Clerk is hereby directed to publish a summary of this ordinance in a newspaper of general circulation circulated in the City of Chula vista. Presented by Approved as to form by {\~~~~ Michael Meacham, Conservation Coordinator H, \home\attorney\reeo\trash Ern /1 a;~ RESOLUTION NO. 19501 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING IN CONCEPT A LANDFILL AGREEMENT WITH OTAY LANDFILL, INC. REGARDING CITY TRASH FLOW AND LANDFILL MITIGATION WHEREAS, Otay Landfill, Inc. ("aLl") is proposing an expansion of the Otay Landfill to a maximum height of 725 feet; and WHEREAS, city has concerns regarding the adverse impacts of such expansion on the City; and WHEREAS, aLl has agreed to mitigate such impacts pursuant to the terms and conditions attached hereto as Exhibit A; and WHEREAS, City staff and aLl are working on developing a final Landfill Agreement consistent with the attached terms in order to present such agreement to the city Council for its approval as soon as possible. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve in concept a Landfill Agreement with Otay Landfill, Inc. regarding City Trash Flow and Landfill Mitigation on the terms attached hereto as Exhibit A subject to City Council final approval, in its sole discretion, of the terms and conditions of the finalized agreement currently being prepared by city staff and OLI. Presented by Approved as to form by ~,,^Y Michael Meacham, cons~n Coordinator H, \home\attorney\reso\landfill /l/J-j EXHIBIT A . Upon issuance of the conditional use permit by San Diego County for the expansion of the Otay Landfill ("Expansion), Otay will donate a 54-acre parcel adjacent to the Otay Landfill to the City. . Upon issuance of the final permit of the Expansion, Otay will pay the City a development fee of $4,000,000 payable in annual installments of$l,OOO,OOO. This amount shall be subject to reduction to the extent the final Expansion is for less than 725 feet, such formula to be mutually agreed upon by City and Pacific. . Otay will assist the City in annexation ofthe donated parcel at the City's cost. . Otay will grant the City an easement, at not cost, for the extension of Pas eo Ranchero Road. To the extent that easement property could be used as mitigation land for the landfill expansion project, the City shall cooperate with Otay in identifying potential alternative mitigation sites or mechanisms for satisfYing such obligations. . Otay will grant the City an easement at no cost to allow emergency access to Maxwell Road from the donated parcel. . Otay will collect litter and perform sweeping on certain roads near the Otay Landfill. . Otay will develop and implement mutually agreed upon dust, noise and bird mitigation plan. . Otay will develop and implement a phased landscape plan approved by the City designed to mitigate the visual impacts of the landfill and to compliment Wolf Canyon vegetation. . Otay will develop and implement a contouring plan approved by the City that compliments the landscape plan and is designed to mitigate visual impacts of the landfill. . Otay agrees that soil stockpiles shall not at anytime exceed the final allowable heighl of the landfill. . Otay shall exercise good faith efforts to increase its existing gas recovery or develop a new gas recovery with respect to methane production in an effort to eliminate the need for a flare system. . Otay agrees to protect vernal pools at the Otay Landfill . Otay shall convert certain vehicles and equipment to a clean fuel source, subscribe with a California E rated clean fuel energy provider for its on site electrical power needs, and provide a price preference for future sub-contracts that encourages the use of CA E rated clean fuel sources for equipment, fuel and energy. . Otay will develop and implement a gate check procedure designed to avoid improper designation of waste to Chula Vista from outside the jurisdiction, commingling of Solid Waste with that of other jurisdictions, litter and improper or illegal disposal. . The City agrees to meet and confer with Otay Landfilllnc.,lAllied outside of the project permitting process in order to address City Concerns regarding visual impacts of the proposed landfill expansion. /7h -c~ I ÐSi 1 [./ 1 999 19: 02 334-345-1798 f(PIS ~URPrlY PAG~ ;7 (Attachment BL -",-.S. : i:' Junl:; 16, 199<, TO:! Mayor Horton & Councilmembers VIA FAX ~ I ï ~ \~)I ì City of Chula Vista I -c~ICES ! . . "'ql CA ' FR~M Kris Murphy -----. I REi 30+ Year Agreement with Pacific Waste Ha~ng been present at last years "afterthe fact" Council approval of Allied Waste's acquisition of Piacific Waste, I was expecting the Council to follow through on using competitive bidding at the fnd of the existing contract, The Council made it very clear that while yOU were overlooking AlliiFd's failure to get Council approval prior to purchasing Pacific Waste, you intended to use the fompetitive market place at the end of the contract. ;1 QUESTION: Where did the proposed 30+ year contract come from? When did Council change it's þind and authorize a sale source contract? Was this deal worked out strictly between Staff and!lpacifiC with no input from the Councilor the Public? In I+ght of the results in Imperial Beach, where Pacific was outbid by EDCO, it would seem that beD' re you sign up with Allied for 30+ years you should pause and consider your options. Wb,ft's the rush? Why hurry when you have years left on the contract? I hte reviewed the proposed agreement and to be honest, it has some very positive features. What is disturbing about it is, while there is a substantial annual cash payment directly from Paò(fic to the City, there is no real tax reduction for the ratepayers. If Pacific is going to be paYFg a much more honest form of "franchise fee," then Council should lower the official frarhiSe fee (tax) and further cut the rates to the ratepayers. It i: also hard to believe that any city would sole source a CO!ltract which is worth well over half a bj1ion dollars and has a length over 3 decades. As F advocate for competitive bidding, I find the process used to date to be questionable in the faC! oftnepast and recent events. CoFents and questiollB respectfully submitted, l~~ " "C' ~(7 DEB~ ¡.f-;¡=;¡ ¡ _J.._": .' -- -~'-~ \þ riHI-i, BO J.tU ¡ IC)C)CJ i:1 [etS) 264.9245 FAX 264.9268 ._-~_. , '" 10981 SIn Diogo Mlulon Rd" ate. 115, San DiegO, CA 82108 _n~ --~ June 21,1999 City ofChula Vista 276 Fourth Avenue Chula Vista. CA 919]0 Rc Big Mistake with Solid Wast~ Contract Extension Dear Council members: It is my understanding that tbe City Council has scheduled a June 22, 1999, Public Hearing 0;1 an Ordinance tc r~ewthe Solid Waste Franchise. The ;¡ropOsed Ordinance is not in the best interests oftbe rnteœvers ofChula Vista 1. The total value of the contract is in ex:ess oj $700 miJIioft (maybe $800 or $900 million depending on growlh and CPI factors). This size of contract should be subject to competitive bid. To award this Franchise without bidding is inconsistent with existing City bidding policies and mconsistent with good business practices. 2. The Proposal per the Agenda St<ltement Attachment of June 8, 1999 mdJcates an increase in the Fra;¡chise Fee mih no reduction in residential rates. The Proposed Ordinance me!ll1s that anywhere from 13 to 15% of thc trash bills paid by ratepayers goes to the City. Curreml)', 8% of !he trash bill goes to the City as Franchise Fees. Why not reduce the Franchise Fee and the Trash Bill? Let's give something back to ¡he ratepayers. FranchIse Fees in the 13-15% range make the City look greedy. J The City spent days ofPlIblic Hearings on the annual $70 million budget. ThIs proposed Ordinance dwarf!; the size of the budget, yet 1 can't get an answer to my June 7, 1999, ~Titten inquiries. 1 can't get an appointment to sce tœ !v'ÆYOr. Why is everybody so secretive? 4. The poJicy stated at the August 8, : 998, City Council :v1ee¡jng was to bid the Solid Waste f,!Il1chise Agreement when the existlßg contract expires. When dJd the City Pok) change? At what City Council Meeting was Staff directed to negotIate a new agreement? \,Vhy the unexplained change ofPohc)'? c ~ 5. This ordinance looks especially bad considering the current economic and political enVlfonment. Imperial Beach bid thelr Solid Waste Contract and received rate reductions of 4% fortheir ratepayers. Escondida currently is III a Special Eiection Campaign to let the voters decide on the merits of competition , The Incumbent hauler has lost the exclusive contract in Imperial Beach and should be especially motivated to bid low. 6. The proposed ordinance does not excJude temporary bin service from the ~ranchise. There was testImony from contractors both in A'Jgtist 1998 and currently that temporary service such as provIded during construCllon and demol1tion should not be included in an exclusIve solid waste contract. Therc IS no reason to rush on this agreement The current contract has three more years to run. ; urge you to vote against this proposed Ordinance. I am available to answer any questions you may have at 284-9245. ~ ) h"t/, If) I Gregg J. King COUNCIL AGENDA STATEMENT Item / r- Meeting Date 6/22/99 ITEM TITLE: Resolution / f.5P';;' Approving a first amendment to the agreement with McGill Martin Self, Inc., for Project Management, Plan Review and Financial Services for the Construction of Olympic Parkway and appropriating $694,000 from the unappropriated balance of the Transportation Development Impact Fee fund to Project STM-331. SUBMITTED BY: Director of Public Works f" REVIEWED BY: City Manager ~¡v (4/5ths Vote: Yes..K...No_) The consultant, McGill Martin Self, Inc. (MMS), has been reviewing plans for the construction of Olympic Parkway and the channel easterly of Brandywine and coordinating the Olympic Parkway project including its financing via a financing district such as a community facility district. Due to the expansion ofthe project as outlined in the Olympic Parkway financing agreement, the consultant needs to perfonn significant additional duties to ensure successful construction and timing of improvements of this important roadway segment. RECOMMENDATION: That Council approve the resolution approving a first amendment to the agreement with McGill Martin Self, Inc., for Project Management, Plan Review and Financial Services for the Construction of Olympic Parkway and appropriate $694,000 from the unappropriated balance ofthe Transportation Development Impact Fee (TDIF) fund and authorize the Mayor to execute said agreement. The balance of the $1,330,500 contract amendment will be paid by developer reimbursement and the balance now available in STM331. BOARDS/COMMISSIONS RECOMMENDATION: N/ A. DISCUSSION: Background On January 19, 1999, the City Council approved, by Resolution 19346, the selection of McGill Martin Self, Inc. (MMS) as the project consultant to provide project management, plan check and financing district management services for the Olympic Parkway project. The initial contract was negotiated for $450,000. When the original agreement was negotiated, staffs expectation was for the consultant to complete plan checking and project management work by the end of this month. On April 20, 1999, the City Council approved, by Resolution 19410, an agreement for the Financing and Construction of Olympic Parkway. The agreement expanded the project limits to include Phase II and Phase III. In addition, the agreement obligated the City ofChula Vista to retain an outside consultant to manage the processing and approval of all plans and pennits. Staff recommends that the first amendment to the MMS agreement be approved to ensure that the roadway and related infrastructure work are completed in a timely manner. /?-'/ .."."'-.'.-'-------"-'.--"-'.-' Page 2, Item~ Meeting Date 6/22/99 Olympic Parkway Proiect Status Unprecedented efforts are currently being expended by City staff, Developers, Private consultants and City's consultants in order to achieve the timely construction of Olympic Parkway. The project is further complicated by the inter-relationships of grading work to adjacent developments and the approval of various tentative and final subdivision maps. According to the City Council adopted Financing and Feasibility study and the adopted financing agreement, Olympic Parkway is too large and extensive to be financed by normal subdivision exaction financing. The project financing structure requires several Community Facility Districts (CFD) to create taxing vehicles that generate sufficient revenues capable of paying for the construction costs. Adjacent developments to be taxed should be substantially far along in the entitlement process for a financially solid CFDs to be established. Therefore, the project boundaries are not limited to its physical location in the public right-of-way. Rather, all issues within the boundaries of the financing districts have a direct impact on Olympic Parkway. Attached Exhibit "A" shows the interrelationship matrix between the Project and various issues. Obtaining environmental clearances and permits is very critical at this time. Several construction contracts are expected to be awarded by the end of this month for a construction start date scheduled for August 1,1999. Existing Contract Status As of the end of April, the consultant has completed approximately 50% of the plan check services of the original contract; 10% of the financial district management services; and 90% of the original project management works for a total of $ 313,000 or 70% of the original contract budget of $450,000. Roadway grading plans ITom Brandywine Avenue to SR 125 have been approved for bid purposes and final plan approval is anticipated by the end of this month. Improvement plans from Brandywine to Paseo Ranchero have also been approved for bid purposes and final plan approval is anticipated by the end of this month. Proposed Contract amendment MMS proposal is for a total budgeted amount of an additional $ 1,330,500. The intent of the estimated amounts in the proposal is to establish a "budget" for project expenditure during the next fiscal year. The contract's monthly payments will be based solely on time and material according to the hourly rate schedule attached to the contract. M!I¡t¡Q..~I$cøpe of Work Items EstÎtlUIte!lFees Plan Check services' $ 580,000 Expansion ofCFD 99-01 $ 28,000 Revision to CFD 98-01 $ 25,000 CFDs Auditing for Olympic Parkway $ 37,500 Extension of Project Management to 6/30/00 $ 500,000 Copies $ 10,000 Contingencies $ 150,000 Total $ 1,330,500 . Includes $ 50,000 contingency for plan check services. )f5'2- ----.---.-..-....-... .-.---.-.---.- -. Page 3, Itemß Meeting Date 6/22/99 Staff recommends continuing work on the project together with the consultant and have, if Council approves, the consultant's scope of work be expanded and modified to allow MMS to do additional work in project management, plan check services and financial district management described below. The initial contract was awarded via the City's professional services selection process initiated with a Request for Proposals. The basic recommendation to select MMS for the original contract is still valid with this expansion ofthe Scope of Work. In January ofthis year, Council concurred with staff recommendation and approved the MMS original contract based on the qualifications of the finn and its personnel, its experience in completing a similar project in northern California, the commitment of a full time project manager(s) as needed, and the finn's understanding of the project and what it takes to process a project of this size. A competitive selection process is not required for the additional work proposed, as this process is exempt for Section 2.56.070 ofthe Municipal Code. However, even that section allows an exception to the selection process where Council detennines these "requirements as applied to that contract are impractical, impossible or that City interests would be materially better served by applying a different purchasing procedure..". Staff recommends that the same consultant continue working on this project as a change in consultant would be both impractical due to bringing up to speed a new consultant and greatly delay the construction of Olympic Parkway due to the length of selection process. In addition, the competitive bidding process is not required by Section 2.56.220 to amend an existing contract. Due to the complexity of the Olympic Parkway project it would not be advisable to change consultants at this stage. In addition, the consultant has been doing a good job in coordinating and expediting this critical project. Many of the project's issues are inter-related with the various adjacent developments. These include location of environmentally sensitive areas, future development proposals, the Regional Trail, sewer and stonn drain locations, existing and proposed CFD boundaries and maintenance areas as they relate to landscaping, the aesthetic design elements of the streetscape, the impact ofthe trolley location on proposed tentative maps, the impact of the City of San Diego waterline relocation on the roadway and adjacent development proposals, land owner issues on the approval processes, etc. These are all ongoing issues whose resolution requires balancing the various departmental concerns in order to achieve a successful project. These complexities require a project team with a high degree of project familiarity. Consequently, staff believes it would not serve in the City's, the development commUÍ1ity's or the community at large's best interests to introduce a new project management team on this project. To do so would cause delays in the project in order to bring a new team up to speed on all the issues. Olympic Parkway is a vital link to the Eastern Territories and its construction is imminent. Timely construction is necessary to ensure that the level of service for traffic, as mandated in the City's threshold standards, will not be compromised. Consequently, staff believes that the community and developer interests are best served if continuity is provided on this proj ect. MMS has provided the high quality work necessary for a project ofthis magnitude and has demonstrated that is has the staffing capability to achieve the various time frames set forth in their existing contract and in the City's agreement with the developers. )g-~ J Page 4, Item I g Meeting Date 6/22/99 Scope of Work Changes The major components in the scope of work which are proposed to be added or expanded in scope are as follows: Project Manager: . Extension of the environmental approval process and strategic planning to address the resource agencies' concerns . Coordination of the Landscape Master Plan and its impact to the project plan check process. . Coordination with the City of San Diego regarding the developer/City negotiations on the major water line relocation. The line traverses the Otay Ranch Village 1 and Otay Ranch Village 1 West projects. . Coordination with Otay Ranch Village 1 West proposed tentative map as it relates to the earthwork, slopes, drainage, etc. adjacent or within Olympic Parkway. . Strategic planning for approval of the Otay Ranch Village 1 West project with property owners other than Otay Ranch Company. . Extension of project management services through June 30, 2000 to accommodate the addition of other Olympic Parkway related roadway projects (listed below). Plan Check: . Addition of Olympic Parkway from East Palomar to SR 125 improvement plans. . Addition of La Media fi-om East Palomar Street to Olympic Parkway grading and improvement plans. . Addition of Olympic Parkway fi-om East Palomar to SR 125 improvement plans. . Landscape and lITigation plans for the additional grading and improvement plans. . Addition ofroadway and channel grading plans separate fi-om the mass grading plans. . Second party review of the channel hydraulics by a local professional expert. . Addition of landscape and irrigation plans for the slopes between the Regional Trail just north of Olympic Parkway and the subdivision pad grading. . Addition of landscape and irrigation plans for the slopes adjacent to La Media, Paseo Ranchero and East Palomar and generally located north of Olympic Parkway and south of East Palomar. . Addition oflandscape and irrigation plans for the mitigation areas in the detention basin and channel. Financial District Management: . Extension of management services through June 30, 2000 to encompass all phases of Olympic Parkway between Brandywine Avenue and SR 125. . Addition of auditing services for the Olympic Parkway portion ofCFD 97-03. . Expansion of auditing services connected with monthly reimbursement schedules. Iff-if Page 5, Item~ Meeting Date 6/22/99 Pay Rate Schedule: . An increase in the pay rate schedule as outlined in the amendment. Contingency: . An increase in the scope of work on a time and material basis in an amount not to exceed $150,000 as approved in writing by the City Manager. Conclusions Staff recommends that $1,330,500 be added to the MMS budget for continuing project management and for expanding the scope of work. Olympic Parkway, with construction costs estimated in excess of$80 million, is a complex project requiring intensive, continual project management. Approval of the amendment authorizes the consultant, MMS to commence and/or continue work on the additional items in the scope of work and to continue project management through June of 2000. Staff, developers, and the general public will benefit from this project since Olympic Parkway and related facilities and links are vital to the Eastern Territories. Staff has reviewed the cost proposal for the additional work which translates into approximately $110,000 per month (or 5 staff people per month) and finds this amount reasonable. Also, based upon the quality of the work of the consultant, staff recommends that Council approve the resolution. This is an allowed budget amount, ifthe project proceeds faster than anticipated, the costs could be lower than the budgeted amount. Both Otay Ranch Company and McMillin are aware of the need for this additional work and support using MMS to complete it. FISCAL IMPACT: The existing consultant services contract is for $450,000 of which $290,000 is funded by CIP STM 331 (Transportation DIF Account 62l-621O-STM 331), the remainder is funded via developer agreements with Otay Ranch Company and McMillin Company and a developer deposit account. Due to the additional scope of work and extension of the contract, an additional $694,000 will be needed from the unappropriated Transportation DIF fund. Deposit accounts or developer agreements would cover the balance of the contract according to the following estimated budgets: Funding Source Budgeted Amount Transportation DIF (STM33 1) $ 1,044,000 Developers $ 140,000 CFD 99-01 $ 84,000 CFD 98-01 Modification $ 25,000 Auditing Services (CFDs 99-01 & 97-3) $ 37,500 Total $ 1,330,500 Both McMillin and Otay Ranch Company have been appraised of this proposal and its cost. Attachments: Exhibit A . Project Network Exhibit B . Consultant cost proposal /~/5 Exhibit C . Amendment to the contract File: 0735.10.STM331 H:IHOME\ENGINEER\AGENDA IMMSAM2.DOC June 17, 1999 (1 1:26am) .....-.-.--.-...---.-.---.-.....-.-.....-....-....... RESOLUTION NO. /7~;L RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A FIRST AMENDMENT TO THE AGREEMENT WITH McGILL MARTIN SELF, INC., FOR PROJECT MANAGEMENT, PLAN REVIEW AND FINANCIAL SERVICES FOR THE CONSTRUCTION OF OLYMPIC PARKWAY AND APPROPRIATING $694,000 FROM THE UNAPPROPRIATED BALANCE OF THE TRANSPORTATION DEVELOPMENT IMPACT FUND TO PROJECT STM-331 WHEREAS, the consultant, McGill Martin Self, Inc. (MMS) has been reviewing plans for the construction of Olympic Parkway and the channel easterly of Brandywine and coordinating the Olympic Parkway Project including its financing via a financing district such as a community facility district; and WHEREAS, due to a desire to have the consultant perform additional duties to ensure successful construction and timing of improvements of this important roadway segment, it is necessary to extend the consultant's contract and increase the consultant's compensation. NOW, THEREFORE, BE IT RESOLVED the city Council of the City of Chula vista does hereby approve a First Amendment to the Agreement with McGill Martin Self, Inc. for Project Management, Plan Review and Financial Services for the Construction of Olympic Parkway, a copy of which shall be kept on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the city of Chula vista is hereby authorized and directed to execute said First Amendment for and on behalf of the city of Chula Vista. BE IT FURTHER RESOLVED that $694,000 is hereby appropriated from the unappropriated balance of the Transportation Development Impact Fee fund to Project STM-331. Presented by Approved as to form by John P. Lippitt, Director of Public Works H: \home\attorney\reso\mcgill. 1st /g-~? .-.--.... .--...-.---'-------- ... ... .-. COUNCIL AGENDA STATEMENT Item /9 Meeting Date 6/22/99 ITEM TITLE: Resolution / '15# 3 of the City Council of the City ofChula Vista, acting in its capacity as the legislative body of Community Facilities District No. 97-03 (Otay Ranch McMillin SPA One), Authorizing and providing for the issuance of special tax bonds of the district, Approving the form of Bond Indenture, Bond Purchase Contract and other documents and authorizing certain actions in conneCti?ith. SUBMITTED BY: Director of Public Works Director of Finance it/' ~/'- REVIEWED BY: City Manager :&...." (4/Sths Vote: YecNoX) of')' Community Facilities District 97-3 (CFD 97-3) will provide public funding for the acquisition or construction of public improvements within the Otay Ranch McMillin project. The district was formed pursuant to the provisions of the "Mello-Roos Community Facilities Act of 1982". Tonight, Council will consider authorizing the issuance of bonds in an amount not to exceed $12,260,000 and approving certain related documents for CFD 97-3. RECOMMENDATION: That Council adopt the resolution authorizing the issuance of Bonds, approving the form of the Bond Indenture, Bond Purchase Contract and other documents for Community Facilities District No. 97-3 and authorizing certain actions in connection therewith. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On November 24, 1998 Council held a public hearing and established Community Facilities District No. 97-3 (CFD 97-3). The Mello-Roos Community Facilities Act of 1982 is a financing mechanism for funding the acquisition or construction of public inITastructure improvements ITom the proceeds of Community Facilities Districts bonds, which are repaid from an annual special tax collected ITom the property owners within the district. There is no direct cost to the City. CFD 97-3 is primarily an acquisition district wherein the developer constructs the public improvements and the City acquires them upon completion with funds derived solely ITom the sale of bonds. A portion ofthe bonds in the amount of $4.7 million will be used to fund the future construction of a portion of the Olympic Parkway improvements. This portion of the bond proceeds will be held in escrow until conditions involving environmental concerns are met. Area of Benefit The current boundary ofCFD 97-3 encompasses all parcels of McMillin Otay Ranch Villages One and Five (see Exhibit A). ) fJ-- / .. --_...._._...._._--~.. --.--.-....-... Page 2, Itemß Meeting Date 6/22/99 ImDrovements Preliminary estimates prepared by the special tax consultant show that the district would support a maximum bond indebtedness of $12,260,000 without exceeding allowable value to lien ratios (see discussion below). The not to exceed principal amount of the bonds has been rounded to $12,260,000. A bond sale amount of$12,260,000 million would finance approximately $10,850,000 in facilities (i.e. grading, landscaping, streets, utilities, drainage, sewer, pedestrian bridges, etc). The balance will provide for a reserve fund and pay district fonnation and bond issuance costs. The public improvements eligible to be financed through this acquisition proceeding include: 1. Olympic Parkway (onsite) within the district boundaries 2. Olympic Parkway (offsite), estimated fair share of McMillin ($4.7 million) towards the construction of the portion from Paseo Ranchero to Brandywine Avenue. 3. La Media Road from Telegraph Canyon Road to Olympic Parkway, including the crossing of Telegraph Canyon Channel 4. East Palomar Street within the district boundaries 5. Santa Cora Avenue in its entirety including a utility corridor connecting Santa Cora A venue to Telegraph Canyon Road. 6. Pedestrian Bridge over La Media Road The location of said facilities is presented in Exhibit A. The estimated construction cost of the foregoing improvements is about $14.0 million. As mentioned before, it is estimated that only $10.8 million may be funded by CFD 97-3. The developer will privately finance additional required facilities that this CFD district cannot finance. Special Tax Levv An illustration of the maximum rate of the special tax levy for a variety of dwellings follows: Land Use Illustrative Maximum Annual Special Tax I) Single Family Detached (1920 SF) $753 Single Family Attached (1200 SF) $470 Attached (1100 SF) $431 Multi Family (1000 SF) $392 Commercial/Industrial (1 acre) $4,000 Community Purpose Facility (1 acre) $1,000 Vacant Land (1 acre) $7,954 1) These taxes are not subject to escalation. Citv Financial Criteria Value to Lien Ratio. The City's Statement of Goals and Policies for Community Facilities Districts ("CFD policy") requires a minimum value to lien ratio of 4: 1. In addition, the policy establishes the following criteria: "The required value-to-debt ratio shall be determined with respect to all taxable property within the community facilities district in the aggregate and with respect to each development area for which no final subdivision map has been filed. A community facilities district with a value-to-debt ratio of less than 4:1 but equal to or greater than 3:1 may be approved. in the sole discretion of the City Council, upon a determination by the City /j -- -2 Page 3, ItemlJ Meeting Date 6/22/99 Manager, after consultation with the finance director, the bond counsel, the underwriter and the financial advisor, that a value to debt ratio of less than 4: I is financially prudent under the circumstances of the particular community facilities district. " Bruce W. Hull & Associates conducted an appraisal (dated May 6, 1999) on the property. Exhibit "B" shows that a bond sale of $12,260,000 will result in an overall lien ratio of 4: 1. All the planning areas, excepting R-46 (lien ratio of3.3l) and those parcels still owned by McMillin (lien ratio of3.07), present a lien ratio greater than 4: 1. On April 5, 1999 McMillin submitted a letter (See Exhibit C) requesting approval of a lien ratio of less than 4: 1 but greater than 3: 1. Staff and consultants have reviewed this request and determined that approving a lesser lien ratio for R-46 and the parcels still owned by McMillin within CFD 97-3 is financially prudent. Staff recommends that Council approve the developer's request based on the following: 1. McMillin has a consistent history of tax responsibility, i.e., the timely payment of ad valorem taxes, assessments, and special taxes. Demonstrating ability and willingness to pay taxes, assessments, and special taxes on time over an extended period of time is critical to the City finance team on recommending a lien ratio of less than 4: 1. 2. Property ownership and special tax obligations within CFD 97-3 are somewhat diversified. The guest homebuilders currently are responsible for approximately 43% of the special tax obligations ofthe district. Diversification of special tax obligation is perceived by the City finance team to assist in mitigating the risk to the bondholders. 3. Development is underway. Model homes permits have been issued for 5 neighborhoods. Home sales already started in April 1999. The status of development indicates that further diversification of ownership should continue and that the value within the CFD should continue to increase. 4. Inftastructure construction is advanced within the District. The completion of significant levels ofinftastructure necessary to serve the district helps to mitigate the risk to the bondholders. 5. Mapping process is underway. Final maps have been recorded for 899 EDUs. McMillin anticipates processing maps for the remaining 489 EDUs during 1999. The status of physical development indicates financial commitment to the project and leads to anticipation of finalizing construction. 6. The market absorption study concludes that the district will reach buildout by the year 2003. This short absorption period indicates that the developer should be responsible for special tax payment for a limited time. Maximum Tax: A preliminary calculation (see Exhibit D), using estimated house prices, indicates that most of the parcels within the district would not exceed the maximum 2% aggregate tax. Only planning area R-22 may have a slightly higher tax rate of2.0l %. A final test will be performed at escrow closing using the actual sale price of the house and actual debt service on bonds.. The Acquisition/Financing agreement requires that at or prior to each closing of escrow, the escrow company shall apply a "calculation formula" previously approved by the City Engineer to determine the aggregate ofregular County taxes, and Mello-Roos taxes. If the 2% limit is exceeded, the homebuilder will be required to buy down the special tax levy to an amount sufficient to meet the 2% tax ceiling. Compliance with this procedure would ensure that the aggregate tax to be paid by the purchaser of the house meets the City's criteria. /tJ -----_._-_.. '-.'-"-'. Page 4, Itemß Meeting Date 6/22/99 Escrow Account The Olympic Parkway Agreement imposes certain limitations on the development phasing of the properties within McMillin Otay Ranch SPA One (see Exhibit E). The agreement requires that the obligations for Stages 3a and 3b shall be met before additional EDU's beyond 901 EDUs are approved for the Otay Ranch McMillin project. Said obligations are: 1) Issuance of environmental permits by the Resource Agencies 2) Approval of grading plans and bonding for the following facilities: . Olympic Parkway - Brandywine to SR-125 . La Media - East Palomar to Olympic Parkway . Paseo Ranchero - East Palomar to Olympic Parkway . East Palomar - Santa Rosa to Olympic Parkway 3) Approval of the Poggi Canyon maintenance agreements Compliance with Stages 3a and 3b obligations is essential for constructing those portions of Olympic Parkway that are needed to fully develop the CFD 97-3 properties. At this point it is anticipated, but not certain, that environmental clearance may be obtained by mid-July 1999. On the other hand, the developer has requested the City to expedite the bond sale and purchasing of improvements. Staff and consultants recommend proceeding with a full bond sale amount (not to exceed $12,260,000), but to escrow $4.7 million of the bond proceeds plus a pro rate share of Revenue Fund. This amount is higher than the aggregate amount (about $3.9 million) of the projected special tax liens on those properties which can not develop until the requirements of Stages 3a and 3b are met. It should also be mentioned that the $4.7 million represents the McMillin fair share for constructing the offsite improvements of Olympic Parkway (which anyway cannot be constructed until the requirements of Stages 3a and 3b are met). The remaining $7,550,000 may be used for acquiring improvements, funding the Reserve Funds, paying the Underwriter's discount and consultant's fees. The developer concurs with the staffs proposal. Staff considers this a reasonable solution and recommends Council approval. The Bond Indenture, which is also before Council tonight, requires $4.7 million of the bond proceeds be deposited in an Escrow Account. Said document also authorizes the Director of Finance to release said escrow funds once the requirements of the Olympic Parkway Agreement and the Otay Ranch SPA One Public Facilities Finance Plan have been met. The Indenture also establishes an Escrow Period Termination Date of March 1,2002 (which may be extended by Council to March 2, 2004). Any funds on deposit in the Escrow Account, not utilized for financing Olympic Parkway Improvements prior to such Termination Date, shall be used to redeem bonds. Resolution The "Resolution Authorizing the Issuance of Bonds and ADDroving the Form of Certain Related Documents" authorizes the issuance of limited obligation bonds, pursuant to the Mello-Roos Act in a principal amount not to exceed $12,260,000. The final bond sale amount will be known once the interest on the bonds is determined at bond sale. In addition, the resolution approves the form of the following documents: . The Bond Indenture between the City and the Fiscal Agent, US Bank Trust National Association, that sets forth the terms and conditions relating to the issuance and sale of the bonds. The /9--( Page 5, Item~ Meeting Date 6/2 /99 Indenture also establishes the Escrow Account and the conditions to be met for releasing the funds deposited in said Escrow Account. * The Bond Purchase Contract. The Bond Purchase Contract authorizes the sale of bonds to the designated Underwriter (Stone & Youngberg LLC). The underwriter's discount for this negotiated sale is not to exceed 1.75% of the total bond amount that translates into a fee not to exceed $214,550. * The Preliminary Official Statement describing the Community Facilities District and type of bonds, including terms and conditions thereof, for the bond holders. * Continuing Disclosure At;!reement between the City and U.S. Bank Trust National Association, as dissemination agent, pursuant to which the City is required to disclose certain financial information on an annual basis regarding the Community Facilities District and certain significant events. These disclosures include but are not limited to: Special tax delinquencies Bond calls Events reducing density or causing modifications Other events reflecting financial difficulties ofCFD 97-3 It should be noted that Council would only be approving the form of the aforementioned documents. The proposed resolution authorizes the Director of Finance to approve the final form and to execute such documents on behalf of the City following review by and consultation with the City Attorney, Bond Counsel, and Financial Consultant. No additions or changes in the documents are permitted which would result in the annual interest rate on the bonds to exceed 7%, or in a purchase price for such bonds not less than 98.25% of the par amount of the bonds (excluding original issue discount, if any) . FISCAL IMPACT: McMillin Otay Ranch Company will pay all costs associated with the formation of the district and will be reimbursed once bonds have been sold. The City will receive the benefit offull cost recovery for staff time spent for the formation of the district. McMillin has already paid to the City $122,600 (1% of the anticipated bond sale) as required by the Acquisition/Financing Agreement. An amount equal to the 1 % of the actual bond sale will be deposited in the General Fund and the remainder will be returned to McMillin. Exhibits: A- Boundary Map B- Value to Lien Ratio c- Letter from McMillin D- 2% Maximum Tax E- Olympic Parkway Agreement ~ EDUs allocation June 17, 1999 (9:29am) H ,\HOMEIENG IN EERIAGENDA IBONDSA LE LDT File 0725.1 0-CFD973 1 LDT /f-5 RESOLUTION NO. ¡'Iso3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA, ACTING IN ITS CAP ACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 97-3 (OTA Y RANCH MCMILLIN SPA ONE), AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF SPECIAL TAX BONDS OF THE DISTRICT, APPROVING THE FORM OF BOND INDENTURE, BOND PURCHASE CONTRACT AND OTHER DOCUMENTS AND AUTHORIZING CERTAIN ACTIONS IN CONNECTION THEREWITH. WHEREAS, the CITY COUNCIL ofthe CITY OF CHULA VISTA, CALIFORNIA ("City Council"), did previously conduct proceedings to fonD and did fonD a community facilities district pursuant to the tenDS and provisions ofthe "Mello-Roos Community Facilities Act ofl982", being Chapter 2.5, Part 1, Division 2, Title 5 ofthe Government Code of the State of Cali fomi a (the "Act"), said Community Facilities District designated as COMMUNITY FACILITIES NO. 97-3 (OTAY RANCH MCMILLIN SPA ONE) (the "District") for the purpose of financing the acquisition of certain public improvements; and, WHEREAS, this City Council has previously declared its intention to issue bonds to finance the acquisition of such improvements, such bonds to be issued pursuant to the tenDS and provisions of the Act; and, WHEREAS, at this time this City Council desires to set forth the general tenDS and conditions relating to the authorization, issuance and administration of such bonds; and, WHEREAS, there have been presented to and considered and ready for approval by this City Council the fonDS of the following documents: A. Bond Indenture by and between the District and U.S. Bank Trust National Association, as fiscal agent (the "Fiscal Agent") setting forth the tenDS and conditions relating to the issuance and sale of bonds (the "Bond Indenture"); B. Bond Purchase Agreement authorizing the sale of bonds to Stone & Youngberg LLC, the designated underwriter (the "Bond Purchase Agreement "); C. Preliminary Official Statement containing infonnation including but not limited to the District and the type of bonds, including tenDS and conditions thereof (the "Preliminary Official Statement"); and 1 /9-~ D. Continuing Disclosure Agreement by and between the District and U.S. Bank Trust National Association, as dissemination agent (the "Dissemination Agent"), pursuant to which the District wi II be ob ligated to provide annual disclosure relating to the and the Bonds (the "Continuing Disclosure Agreement"); and WHEREAS, this City Council, with the aid of City staff, has reviewed and considered the Bond Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement and the Preliminary Official Statement and finds those documents suitable for approval, subject to the conditions set forth in this resolution; and WHEREAS, all conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance ofthe bonds as contemplated by this resolution and the documents referred to herein exist, have happened and have been performed or have been ordered to have been performed in due time, form and manner as required by the laws of the State of California, including the Act and the applicable policies and regulations of the City. NOW, THEREFORE, IT IS HEREBY RESOLVED AS FOLLOWS: SECTION 1. Recitals. The above recitals are true and correct. SECTION 2. Determinations. This legislative body hereby makes the following determinations pertaining to the proposed issuance of the Bonds (as defined below): (a) The overall value ofthe property within District which will be subject to the special tax to pay debt service on the Bonds will be at least four (4) times the principal amount ofthe Bonds and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act or a special assessment levied on property within the District. The value of the property within each planning area within the District, with the exception of R-46 (the "R-46 Property") and those parcels owned by McMillin Otay Ranch, LLC (the "McMillin Property"), will be at least four (4) times the principal amount ofthe Bonds allocable to each such planning area and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act within each such planning area or a special assessment levied on property within each such planning area. The value ofR-46 Property and the value of the McMillin Property will be at least three (3) times the principal amount of the Bonds allocable to each such property and the principal amount of all other bonds outstanding that are secured by a special tax levied within each such property pursuant to the Act or a special assessment levied on property within each such property. This determination is based upon the full cash value as 2 /7'-7 shown upon an appraisal of the subject property prepared by Bruce Hull & Associates, a state certified real estate appraiser, as defined in Business and Professions Code Section l1340(c). Such determination was made in a manner consistent with the City ofChula Vista Statement of Goals and Policies Regarding the Establishment of Community Facilities Districts, as amended to date (the "Goals and Policies"). The overall value-to-debt ratio satisfies the policy ofthe City contained in the Goals and Policies related to the minimum required 4 to 1 value-to-debt ratio. The value-to- debt ratios of the R-46 Property and the McMillin Property is less than 4 to 1 but greater than 3 to 1 for each property. The City Council hereby determines, based upon a determination by the City Manager, after consultation with the Finance Director, bond counsel, Stone & Youngberg LLC, as underwriter ofthe Bonds, and Fieldman, Rolapp & Associates, as the financial advisor to the City and District for the Bonds, that the value-to-debt ratio ofless than 4: 1 for the R-46 Property and the McMillin Property is financially prudent under the circumstances of the District. The City Council determination is based upon those factors specified in the staff report upon which the determination and recommendation of the City Manager are based. (b) The terms and conditions of the Bonds as contained in the Bond Indenture are consistent with and conform to the Goals and Policies. (c) As a result of the current status of development of the property within the District and the relative lack of diversity of ownership of property within the District, the private sale of the Bonds will result in a lower overall cost to the District. SECTION 3. Bonds Authorized. Pursuant to the Act, this Resolution and the Bond Indenture, special tax bonds ofthe District designated as "City ofChula Vista Community Facilities District No. 97-3 (Otay Ranch McMillin Spa One) 1999 Special Tax Bonds" (the "Bonds") in an aggregate principal amount not to exceed $12,260,000 are hereby authorized to be issued. The date, manner of payment, interest rate or rates, interest payment dates, denominations, form, registration privileges, manner of execution, place of payment, terms of redemption and other terms, covenants and conditions of the Bonds shall be as provided in the Bond Indenture as finally executed. SECTION 4. Authorization and Conditions. The City Manager, the Deputy City Manager and the Director of Finance or such other official of the City as may be designated by this City Council (an "Authorized Officer") is hereby authorized and directed to execute and deliver the various documents and instruments described in this Resolution, provided that no additions or changes shall authorize an aggregate principal amount of Bonds in excess of$12,260,000, an annual interest rate on the Bonds in excess of seven percent (7%) per year and a purchase price for the Bonds not less than ninety eight and twenty-five one hundredths percent (98.25%) of the par amount 3 J9-ð of the Bonds (excluding original issue discount, ifany) plus such portion of the cost of underwriter's counsel disclosure services as may be approved by the Director of Finance. The approval of such additions or changes shall be conclusively evidenced by the execution and delivery of such documents or instruments by the Authorized Officer, upon consultation with and review by the City Attorney and Brown Diven Hessell & Brewer LLP, the District's bond counsel. SECTION 5. Bond Indenture. The proposed fonn of Bond Indenture by and between the District and the Fiscal Agent, with respect to the Bonds as presented to this City Council and on file with the City Clerk is hereby approved. An Authorized Officer is hereby authorized and directed to cause the same to be completed and executed on behalf of the District, subject to the provisions of Section 4 above pennitting additions and changes to be made to such document. SECTION 6. Official Statement and Continuing Disclosure Agreement. The City Council hereby approves the fonn ofthe Preliminary Official Statement as presented to this City Council and on file with the City Clerk, together with any changes therein or additions thereto deemed advisable by an Authorized Officer. Pursuant to Rule l5c2-l2 under the Securities Exchange Act of 1934 (the "Rule") an Authorized Officer is authorized to detennine when Preliminary Official Statement is deemed final, and an Authorized Official is hereby authorized and directed to provide written certification thereof. The execution of the final Official Statement, which shall include such changes and additions thereto deemed advisable by an Authorized Officer pursuant to the Rule, shall be conclusive evidence ofthe approval of the final Official Statement by the District. The City Council hereby authorizes the distribution of the final Official Statement by the Underwriter (as defined below) as the initial purchaser of the Bonds. The fonn of Continuing Disclosure Agreement by and between the District and the Dissemination Agent as presented to this City Council and on file with the City Clerk is hereby approved. An Authorized Officer is hereby authorized and directed to cause the same to be completed and executed on behalf of the District, subject to Section 4 above pennitting additions and changes to be made to such document. SECTION 7. Sale of Bonds. This City Council hereby authorizes and approves the sale of the Bonds by negotiation to Stone & Youngberg LLC (the "Underwriter") subject to the pricing parameters set forth in Section 4 above. The fonn of the Bond Purchase Agreement is hereby approved and an Authorized Officer is hereby authorized and directed to execute the Bond Purchase Agreement on behalf of the District upon the execution thereof by the Underwriter, subject to Section 4 above pennitting additions and changes to be made to such document. SECTION 8. Bonds Prepared and Delivered. Upon the execution of the Bond Purchase Agreement, the Bonds shall be prepared, authenticated and delivered, all in accordance with the applicable tenus of the Bond Act and the Bond Indenture, and any Authorized Officer and other 4 /f-- c¡ ..-.--.- . --.- -------.---...--...-- -----. responsible City officials, acting for and on behalf ofthe District, are hereby authorized and directed to take such actions as are required under the Bond Purchase Agreement and the Bond Indenture to complete all actions required to evidence the delivery of the Bonds upon the receipt ofthe purchase price thereof from the Underwriter. SECTION 9. Actions. All actions heretofore taken by the officers and agents of the City with respect to the establishment of the District and the sale and issuance of the Bonds are hereby approved, confinned and ratified, and the proper officers ofthe City, acting for and on behalf ofthe District, are hereby authorized and directed to do any and all things and take any and all actions and execute any and all certificates, agreements, contracts, and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Bonds in accordance with the Act, this Resolution, the Bond Indenture, the Bond Purchase Agreement, the Continuing Disclosure Agreement, and any certificate, agreement, contract, and other document described in the documents herein approved. SECTION 10. Effective Date. This resolution shall take effect trom and after its adoption. Presented by Approved as to fonn by ~~k-- John P. Lippitt John M. Kaheny Director of Public Works City Attorney H:lsharedlattorneyllorainelresolution of issuance 5 /9~/o McMillin I Otay Ranch EXHIBIT "A" CFD No. 97-3 PLANNING AREA MAP ~ " u .J r ~ ,: t ' r it, f' ~ ~~~/\;~tT.~,NTS Jf~/I @ - - - - - - . ~, --..------- .-...-- . "S'3551593 DA'J1D TAUSSIG & ASSC c-7bb T-Be? P-OO2/0Ø2 JLJN 0B '39 15'20 " ...,,"""'" ~ -;;-;-;-;0 I 0 ~ D"":~ :=::>:D::>:I::. "" .. " ;¡¡¡¡¡'¡: ..~","";"'>O¡;C ~ ~ 0.".""- ~",.~"- ¡'¡O ~ § ~~~~! ~ >0 >0 D~ ; ~ ~~~~~ ~~ ~~Q~O~O : i~_D¡¡ ~.~ :¡./:'¡~~¡¡~ iii c.~;~f -~ ~~~a<~>o . Q ~g~i~ ~ ~~~~~f~ : ~ ,..c",.5' ~ -9-0..' "' :: §:b' ¡¡: œ~¡;-:;...~ :; ~ d; ~q;:""i= ~ !ï: § i ~ ¡ ~.~ i~ B ~ ~ ~ ~ ~~ ~ ~ 1 .., ! .... o.§. c ~ ~ " " . ~ ~ c.<~ ;,:g'" ~O ;~;!';~~~ :=§ ~ I '." ~ ,"'.§. ¡ c> i ,~2" -<c>~ , "'- ~ '" <:.." 0 °.,,0 "'0- ~<~ :zc> ~~ r__~--- ;'~~ ~?E ~~ ~~~~:~~:§ ~~~ :¡; 8 :;:::::::: g ~::;¡; .. '"' ¡¡- '" - : þ" -"- '" c .. =i~ î -~~ .. H ~E!!i~::;~~ !'" . - -"'. - 5'.-!"." '" ;;18 j~~¡g~~~ 8 1= '[ ¡~ >;1 ~ ~ ¡ a(~; ~ ~:: 11'1 ~ '8~ '~~'~H';J'~ I~ I' Íìì I :? X ~~ ~~~~~~~ i~ ~ o~ ~~O~AOO ~ ~ ~8 ~ßP~~~P = ~ gg 8gggggg ~ ~I < e. en H ~ - .~ ~,.,ø.~~~ ~ ~ bJ 0'" o~~~~~= ~- "'~ "'-~.C~O ~- /:; -j2 . c.. ...---.-. , . E-y.ft"'8/1 é. .", The Corky McMillin Companies R.",y' Mong.,. . Le", D""'pm." . HO~' . Comm",..' AprilS, 1999 Mr. Dave Rowlands Mr. Bob Powell City of Chula Vista 2764'" Avenue Chula Vista CA 91910 Re: CFD No. 97-3 Series 1999 bonds - Value-to-Lien Ratio Dear Mr. Rowlands and Mr. Powell: The City's CFD Goals and Policies sets forth the following value-to-lien ratio policy for any CFD bond issue: "The required value-to-debt ratio shall be determined with respect to all taxable propeny within the community facilities district in the aggregate and with respect to each development area for which no final subdivision map has been filed. A community facilities district with a value-to-debt ration ofless than 4: I but equal to or greater than 3: 1 may be approved, in the sole discretion of the City Council, upon a determination by the City Manager, after consultation with the Finance Director, the bond counsel, the underwriter and the financial advisor, that a value-to-debt ratio ofless than 4: 1 is fmancially prudent under the circumstances of the particular community facilities district" We believe that the specific circumstances ofCFD No. 97-3 and the proposed bond issuance support a determination that an issuance with a value-to-lien ratio of more than 3:land less than 4: 1 is financially prudent. These circumstances include the following: . McMillin has a long track record as a responsible homebuilder and community member in the City of Chula Vista. . McMillin has a perfect record as a special tax and assessment payor within financing districts in the City of Chula Vista, including the Otay Lakes Road and "H" Street assessment districts which we formed at Rancho Del Rey. . McMillin has a perfect record as a responsible master developer in the establishment and disclosure of special taxes and assessments within many of its master planned communities throughout southern California, including Bonita Long Canyon, Scripps Ranch Villages, Rancho Del Rey and South Poway Business Park. . McMillin has worked with agencies and bond holders to take over and successfully develop projects within troubled community facilities districts, most notably the South Poway Business Park in the City of Po way and Temeku Ranch in the City of Temecula. /(-'/;3 A\\. A\\. A\\. A\\. A\\. McMillin R~",. M,Millin Mn".." M,Millo" Lend Omlopm,", ",Millon Hn"," ","""n Commm~l CORPO"TE OFFICE 27" HOOVER AVENUE NATlDN^, CITY CA 91950 TEe ,"9477-4'" FAX 16" 336.3"9 _m,m,IImoom ..-...----------.--.-.- Mr. Dave RowlandslMr. Bob Powel1 AprilS, 1999 Page 2 . Development is well under way within CFD No. 97-3 - the proposed CFD financed facilities are virtual1y complete (wIth the exception of Olympic ParJ..."\Vay) and home sales win commence this month. . The ownership of property within CFD No. 97-3 is well diversified - to date, McMillin has sold lots to other entities representing 60% of the dwelling units within the CFD. These entities include wen capitalized, well fmanced and experienced apartment and homebuilders ChelseaIK&B Multifamily, Shea Homes and Cornerstone Communities. AdditionaUy, the City acted as issuer for the successful sale of the multi-family housing revenue bonds for the ChelseaIK&B affordable housing project. . The City's CFD Goals and Policies allow the appraiser to assume that the appraised property is free and clear of all liens and encumbrances, including the lien of any special taxes of the proposed CFD. In this instance. however, a more conservative appraisal approach has been adopted which takes into account the potential special tax lien. Even with this conservative approach, the value-to-lien ratio of the property within the CFD is 3.45: J. . The City's assessment district policy only requires a 3:1 value-to-lien rarjo. . We believe that, given the circumstances described above, the underwriters are very comfortable that the CFD No. 97-3 bond issue will be well received in the market, and would conclude that there is no unusual or significant credit risk inherent in issuing the Series 1999 bonds with a value-to-lien ratio of less than 4: 1 and no credit enhancement. We request that direction be given to the CFD No. 97-3 financing team to go forward with a proposed bond issuance of approximately $11,950,000 and a value-to-lien ratio or more than 3: I and less than 4: 1. ¡fyou have any questions regarding this request, or need additional infonnation, please feel free to can me at 336-3785. Sincerely, ~!'t~ """4 ' ,-VJ,- Kimberly K. Elliott Vice President cc: Bill Huck - Stone & Youngberg Ramiro Albarran - Stone & N oungberg George Krempl- City of Chula Vista Lombardo De Trinidad - City of Chula Vista John Foreman - Development Planning & Financing Bruce HuU Tom Johnsen - Fieldman Rolapp & Assoc. John Lippitt - City of Chula Vista Andrea Roess - David Taussig & Assoc. Cliff Swanson - City of Chula Vista Bob Whalen - Stradling Yocca Carlson & Rauth Ann Moore -City of Chula Vista Warren Diven - Brown Diven Hessel and Brewer )9 //ý John Yeager - Hewitt & McGuire H,\data\m'IKim\OT A YRNCH~tr 10 rowland, '" value-Io-lien rallO.doc . 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'- "" :: 0 -:= Q ~ ~ ~ ~.S ~ ~:g : ~ ~ æ .s ~ ~ ~ .: ~ ~ 'E .: ~ ~ .: ] :" gf] J5 -0 ~ ]":';.~],.:.- ],.:. ~'¡¡§.~,; ~ c.~ ¡:¡" c.~ ¡:¡ c.~ <.:: ¡;¡ 0;;: ;: G =;:¡ IIJ s;:¡ =;:¡ IIJ=U"".- E: =Q¡:¡'-oQ¡:¡ =Q ..o¡'¡:!::-.:i::: ?: .. ,-, >:::- .. ¡¡J;' .. ¡¡J = '- '" IIJ ;::; is ê;': e'§ ê;- 2.... =- '"-=~~ti! ;; Eo :: ~ ~ c. :: §".-:= E- ~ ~ :: '§ ;;; <: § -~-"';:¡~_U_~ -IIJ--= Z ---<:- < g ~ .~ E.5 g ~ ¡:¡ '- t; IIJ ~ ~ ;>f-;;'¡ 5~;:5;: t~ 0 z; ¡; ~ /7 1% '- IIJ :: E-, IIJ :;! ¡¡¡ c::: ¡¡J ;<: "" "// ê",: 0 ;:: iß ~ § ;;:¿¡;j /, :::.::~.=¡:'; ~Q è. ::::,~C * ~;; COUNCIL AGENDA STATEMENT Item / c¡ Meeting Date 6/22/99 ITEM TITLE: Resolution of the City Council of the City ofChula Vista, acting in its capacity as the legislative body of Community Facilities District No. 97-03 (Otay Ranch McMillin SPA One), Authorizing and providing for the issuance of special tax bonds of the district, Approving the form of Bond Indenture, Bond Purchase Contract and other documents and authorizing certain actions in connection therewith. SUBMITTED BY: Director of Public Works f' Director of Finance REVIEWED BY: City Mana¡1 (4/Sths Vote: Yes_NoX) This item will be delivered under separate cover on June 18, 1999. H:IHOMEIENGINEERIAGENDA IBOND.FP /f~()