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Home My WebLink AboutAgenda Packet 2004/10/19 CITY COUNCIL AGENDA October 19, 2004 6:00 p.m. Council Chambers Public Services Building 276 Fourth Avenue, Chula Vista ~~~ ~ - - -- - --~~~ CllY OF CHUlA VISfA City Council City Manager Patty Davis David D. Rowlands, Jr. John McCann City Attorney Jerry R. Rindone Ann Moore Mary Salas City Clerk Stephen C. Padilla, Mayor Susan Bigelow ********** The City Council meets regularly on the first calendar Tuesday at 4:00 p.m. and on the second, third and fourth calendar Tuesdays at 6:00 p.m. Regular meetings may be viewed at 7:00 p.m. on Wednesdays on Cox Cable Channel 24 or Chula Vista Cable Channel 68. Agendas are available on the City's website at: www.chulavistaca.gov ********** October 19,2004 AGENDA I declare under penalty of perjury that I am employed by the City of Chula Vista in the Office of the City Clerk and that I posted this document on the bulletin board according to 1rovm Act requirements. (} _ "~rj _. "'/fs/OY Signed 6:00 P.M. ~. CALL TO ORDER ROLL CALL: Councilmembers Davis, McCann, Rindone, Salas, and Mayor Padilla PLEDGE OF ALLEGIANCE TO THE FLAG, MOMENT OF SILENCE SPECIAL ORDERS OF THE DAY · INTRODUCTION BY POLICE CHIEF EMERSON OF RECENTL Y PROMOTED AGENTS ROBERT BENNETT, DANIEL PEAK, MATT SMITH, AND MARK T AZELAAR · PRESENTATION OF A PROCLAMATION BY MAYOR PADILLA TO MICHAEL EDEN DECLARING OCTOBER 15, 2004 AS "WHITE CANE SAFETY DAY" CONSENT CALENDAR (Items 1 through 9) The Council will enact the Consent Calendar staff recommendations by one motion, without discussion, unless a Councilmember, a member of the public, or City staff requests that an item be removed for discussion. If you wish to speak on one of these items, please fill out a "Request to Speak" form (available in the lobby) and submit it to the City Clerk prior to the meeting. Items pulled from the Consent Calendar will be discussed after Action Items. 1. WRITTEN CORRESPONDENCE A. Letter of resignation from Cristobal Durazo, member of the Youth Advisory Commission. Staff recommendation: Council accept the resignation and direct the City Clerk to post the vacancy in accordance with Maddy Act requirements. B. Letter of resignation from Susan Villareal, member of the Child Care Commission. Staff recommendation: Council accept the resignation and direct the City Clerk to post the vacancy in accordance with Maddy Act requirements. 2. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE SECTIONAL PLANNING AREA (SPA) PLANNED COMMUNITY DISTRICT REGULATIONS FOR OTAY RANCH, VILLAGE SEVEN (SECOND READING) Adoption of the ordinance approves the planned community district regulations for Otay Ranch Village Seven. This ordinance was introduced October 12, 2004. (Director of Planning and Building) Staff recommendation: Council adopt the ordinance. Page 1 - Council Agenda October 19,2004 3. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A REQUEST FROM THE CHULA VISTA HIGH SCHOOL BAND AND PAGEANTRY CORPS AND THE CHULA VISTA SCHOOL FOR THE CREATIVE AND PERFORMING ARTS TO CONDUCT THE EIGHTH ANNUAL BAND REVIEW, AUTHORIZING TEMPORARY STREET CLOSURES, AND WAIVING CITY FEES FOR POLICE SERVICES Adoption of the resolution approves the conducting of the band review, authorizes temporary street closures, and waives city fees for police services. (Chief of Police, Director of Human Resources, Director of Public Works) Staff recommendation: Council adopt the resolution. 4. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE INSTALLATION OF A TRAFFIC SIGNAL AT EAST PALOMAR STREET AND DAVIES DRIVE (TF-314) TO HMS CONSTRUCTION Installation of a traffic signal at the subject intersection was approved and budgeted as part of the Fiscal Years 2003/2004 and 2004/2005 Capital Improvement Programs (CIP). The scope of the project includes the installation of a fully actuated traffic signal system and other work necessary to complete the proj ect. (Director of General Services, City Engineer) Staff recommendation: Council adopt the resolution. S. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE DRAINAGE MAINTENANCE AND INDEMNIFICATION AGREEMENT (MCMILLIN OTAY RANCH VILLAGE 7 GRADING) BETWEEN THE CITY AND MCMILLIN OTA Y RANCH, LLC A condition of the approved tentative map for McMillin Otay Ranch Village 7 requires the developer to enter into an agreement with the City to satisfy certain conditions of approval and mitigation measures prior to issuance of a grading permit for the project. (Director of General Services, City Engineer) Staffrecommendation: Council adopt the resolution. 6. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CHANGE ORDER NO. 1 FOR THE DAVID A. WERGELAND SHARK AND RAY EXPERIENCE PHOTOVOLTAIC SYSTEM, IN THE CITY OF CHULA VISTA (PROJECT GG-I76A), AND AUTHORIZING THE DIRECTOR OF GENERAL SERVICES TO EXECUTE SAID CHANGE ORDER ON BEHALF OF THE CITY The Council awarded a contract to Independent Energy Solutions for this project. The contract provided for a fully functional 7.1KW (STC) grid-connected PhotovoItaic System to be installed. Due to a California Energy Commission (CEC) program rebate that was less than estimated and unanticipated increase in cost of materials, staff is recommending, in accordance with Council Policy 574-01, approving change order no. 1 of the contract to complete the project. (Director of General Services) Staff recommendation: Council adopt the resolution. Page 2 - Council Agenda October 19, 2004 ""-"--- - 7. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADDING CHAPTER 15.58 TO THE CHULA VISTA MUNICIPAL CODE RELATING TO PLACARDS USED TO DENOTE THE CONDITION OF STRUCTURES AND THE ABILITY TO SAFELY OCCupy OR USE THOSE STRUCTURES AFTER A DISASTER (FIRST READING) Post-disaster safety assessment and posting of placards on buildings that clearly identify the condition of buildings and structures for owners, occupants and the general public is one of the essential functions of the Standardized Emergency Management System. Adoption of the ordinance makes the placards more easily enforceable, clearly specifies the penalty for disobeying them, and prevents their unauthorized removal or altering. (Director of Planning and Building) Staff recommendation: Council place the ordinance on first reading. 8. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A FIVE-YEAR LEASE BETWEEN THE CITY OF CHULA VISTA AND INVESTCAL REALTY CORPORATION FOR OFFICE SPACE AT 900 LANE A VENUE, APPROPRIATING $47,208 FROM THE AVAILABLE BALANCE OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND, AND AUTHORIZING THE MAYOR TO EXECUTE SAID LEASE AGREEMENT (4/STHS VOTE REQUIRED) The City's sublease for a satellite office in the Eastlake Business Center expires on December 31,2004. Staff negotiated a lease agreement to lease another suite in the same building. Adoption of the resolution approves the new lease and appropriates funding. (Director of Planning and Building) Staff recommendation: Council adopt the resolution. 9. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND AWARDING A PURCHASING AGREEMENT TO WEIDNER CONSULTING TO DEVELOP FIVE-YEAR STRATEGIC BUSINESS PLANS FOR THE POLICE, COMMUNITY DEVELOPMENT AND GENERAL SERVICES DEPARTMENTS, AND TRANSFERRING AND APPROPRIATING FUNDS THEREFOR (4/STHS VOTE REQUIRED) Selecting Weidner Consulting, Inc. to develop Strategic Business Plans for the Police, Community Development, and General Services departments will provide invaluable information on some of the highest priorities and far reaching programs affecting future City growth and constituent services. (Assistant City Manager Fruchter, Chief of Police, Director of Community Development, Director of General Services) Staff recommendation: Council adopt the resolution. Page 3 - Council Agenda October 19, 2004 ORAL COMMUNICATIONS Persons speaking during Oral Communications may address the Council on any subject matter within the Council's jurisdiction that is not listed as an item on the agenda. State law generally prohibits the Council from taking action on any issue not included on the agenda, but, if appropriate, the Council may schedule the topic for future discussion or refer the matter to staff. Comments are limited to three minutes. ITEMS PULLED FROM TIIE CONSENT CALENDAR OTIIER BUSINESS 10. CITY MANAGER'S REPORTS 11. MAYOR'S REPORTS 12. COUNCIL COMMENTS CLOSED SESSION Announcements of actions taken in Closed Session shall be made available by noon on Wednesday following the Council Meeting at the City Attorney's office in accordance with the Ralph M. Brown Act (Government Code 54957. 7). 13. CONFERENCE WITH LEGAL COUNSEL REGARDING EXISTING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION S49S6.9(a) . ARB v EastIake (SDSC #GIS1SS82) 14. CONFERENCE WITH LEGAL COUNSEL REGARDING INITIATION OF LITIGATION PURSUANT TO GOVERNMENT CODE SECTION S49S6.9(c) . One case ADJOURNMENT to the Regular Meeting of October 26, 2004, at 6:00 p.m. in the Council Chambers. Page 4 - Council Agenda October 19,2004 DATE: October 15,2004 TO: Honorable Mayor and City Council VIA: Dave Rowlands, City Manage~~..-' FROM: Louie Vignapiano, Director of Management & Infonnation serviéW SUBJECT: Technology Project with HomeIand Security In an infonnationaI item in your packet this week Council was provided with infonnation concerning the Chula Vista ResponseNet project. In the item Council was told that the proof of concept demonstration would be on Thursday October 21 at 8:00 am. Due to unforeseen constraints, the proof of concept demonstration has been rescheduled for Wednesday November 3 at 8:00 am. If you have any questions regarding the ResponseNET project, or the MIS department in general, please contact me at (619) 476-5319. .n" _~.____._....._. _._.. __ _.__..._.._. _ __ ..__.~._.___...__" DATE: October 15, 2004 TO: Honorable Mayor and City Council VIA: Dave RowlandsR Manager FROM: Louie Vignapiano, Director of Management & Information serviC'éf} SUBJECT: Technology Project with Homeland Security For the past few years staff has been reviewing alternatives for high-speed wireless communication for public safety use. After discussions with several companies with little success we were provided the opportunity to join a very exciting project for complete interoperability in wireless communication as well as many other benefits. About a year ago staff from MIS, Police, Fire, Public Works, and the City Manager's Office began an initiative which is now called Chula Vista ResponseNET with Antin Engineering, SSC-San Diego (SPA YW AR) and many technology partners including Quallcomm, TechAL T, and others. This project is being designed to provide the City ofChula Vista a number of new technologies that will enhance the City's ability to respond to emergencies on a day-to-day basis as well as to respond to major incidents such as terrorist attacks. ResponseNET will provide: 1. High-speed wireless network which will allow full motion video trom police and fire vehicles to anywhere on our network including other vehicles. 2. Voice interoperability through the wireless system which would allow our current 800 MHZ radio system to communicate with almost any other radio system in the County in an emergency. This system will also allow our emergency radio systems to simultaneously communicate to land-lines or cellular phones if necessary. 3. A tracking system provided by Qualcomm which tracks hazardous materials. This system will notify Chula Vista when hazardous materials are within 50 miles of our borders and has a "GEO-Fencing" capability which will notify _ m...__ "'...__ "._."" ,,".'__'_"'_ . _.__._.. _._...., '_"_ u____mm___._ Chula Vista ifthe hazardous material deviates from its predetermined route. 4. Incident correlator, which will take infonnation from different sources such as our CAD system, the Qualcomm tracking system and others and correlate them based upon predefined scoring criteria to provide law enforcement with an early warning of potential problems. 5. A First Level and Second Level Emergency Notification System which will allow for faster and more efficient notification in the event of an emergency. This first phase of the ResponseNET project has been fully funded by various sources including the Department of Homeland Security and the Office of Disaster Preparedness and has been designed to show "proof-of-concept" during a staged scenario of a terrorist attack involving the City ofChula Vista, CHP, the Border Patrol and others. This scenario is scheduled to take place on Thursday October 21 in the mommg. While each ofthe technologies will be demonstrated during the exercise, many ofthe pieces are in a scaled-down version. Staff will demonstrate the video from the vehicles, the correlation features, the "geo-fencing" as well as the emergency notification systems, however our voice interoperability will be limited to just a few different radio sources. This should be sufficient to demonstrate that the technology works. After the "proof-of-concept" demonstration on Thursday, staff along with Antin Engineering will continue to work with the department of Homeland Security and the Office of Disaster Preparedness to obtain funding for a full roll-out of this exciting proj ect. If you have any questions regarding the ResponseNET project, or the MIS department in general, please contact me at (619) 476-5319. · - Cristobal Durazo 1460 Owen Dr. Chula Vista, CA 91911 (619) 271-3570 September 8, 2004 JoAnn Jonas, Secretary/Staff Liaison Youth Advisory Commission- City of Chula Vista 365 Fourth Ave. Chula Vista, CA 91910 Dear Mrs. Jonas: I have enjoyed participating in the Youth Advisory Committee. It has been a great experience for me. This letter is to officially resign of my position as a Youth Council for the City of Chula Vista. At this moment, there are other areas of my education that need close attention and I feel that my quality of service to the City will not be to the best I would like to serve. I look forward to the opportunity that in the near future I can service my community with the dedication it deserves. Thank you for the opportunity of been in the Youth Commission. Sincerely, L.í\ó~ ~C) Cristobal Durazo Otay Ranch High School =~'. ~-e... tlaW¡ sQV\. IA- -- .----- RECEIVED St/44le lIittaMat A8 :28 1214 La Vida Court '04 OCT -8 Chula Vista, CA 91915 (619) 871-6024 . sviJIavista@yahoo.com CITY OF CHULA VIST t; CITY CLeRK'S OFFiGC October 5, 2004 City of Chula Vista Honorable Mayor Steve Padilla and City Council Members C/O Lorraine Bennett, City Clerk 276 Fourth Avenue Chula Vista, CA 91910 Re: Commission Resignation Dear Mayor and City Council Members, It is with great regret that I must resign my position as a Member of the Child Care Commission effective October 6, 2004. My family will be moving to a new residence outside the city of Chula Vista, which will no longer qualify me to be a Commission Member. I have thoroughly enjoyed my time serving the City and the Child Care Community and wish the Commission continued success in their service to the residents and children of Chula Vista. Sincerely, f1)~ Susan Villareal ¡ð ORDINANCE NO. ~'?~O~ ~~~ AN ORDINANCE OF THE crty COUNCI~~~~ CITY OF CHULA VISTA APPROVING THE S~~ PLANNING AREA (SPA) PLANNED COMMUNITY DI CT REGULATIONS FOR OTAY RANCH, VILLAGE SEVEN. WHEREAS, the property which is the subject matter of this resolution is identified as Exhibit "A" attached hereto and described as encompassing approximately 303 acres, and is commonly known as Otay Ranch Village Seven Sectional Planning Area (SPA) ("Property"); and, WHEREAS, an application for adoption of the Otay Ranch Village Seven Sectional Planning Area (SPA) Plan, was filed with the City of Chula Vista Planning Department on September 2, 2003 by McMillin Otay Ranch, LLC, later joined in that application by Otay Ranch Project LP (together, "Applicants"); and WHEREAS, the Otay Ranch Village Seven Sectional Planning Area (SPA) Plan, Planned Community District Regulations ("Project") are intended to ensure that the Otay Ranch Village Seven Sectional Planning Area (SPA) Plan is prepared in accordance with the Otay Ranch General Development Plan (GDP), to implement the City of Chula Vista General Plan foreastem Chula Vista, to promote the orderly planning and long term phased development of the Otay Ranch GDP and to establish conditions which will enable the Otay Ranch Village Seven Sectional Planning Area to exist in harmony within the community; and, WHEREAS, the Otay Ranch Village Seven Sectional Planning Area (SPA) Planned Community District Regulations are established pursuant to Title 19 of the Chula Vista Municipal Code, specifically Chapter 19.48 (PC) Planned Community Zone, and are applicable to the Otay Ranch Village Seven SPA Land Use Plan ofthe Otay Ranch Village Seven Sectional Planning Area (SPA) Plan; and, WHEREAS, the Otay Ranch Village Seven Sectional Planning Area Planned Community District Regulations establish zoning regulations for the (PC) Planned Community Zoning District located in Otay Ranch Village Seven Sectional Planning Area; and, WHEREAS, the City's Environmental Review Coordinator has reviewed the Project and determined that the Proj ect would result in a significant impact to the environment, therefore, a Second-Tier Environmental Impact Report (Final EIR 04-06) has been prepared; and, WHEREAS, the Planning Commission set the time and place for a hearing on said Otay Ranch Village Seven Sectional Planning Area (SPA) Plan (PCM-04-0S) and notice of said hearing, together with its purpose, was given by its publication in a newspaper of general circulation in the city and its mailing to property owners within 500 feet ofthe exterior boundaries of the Project site at least ten days prior to the hearing; and, ;2.,-/ Ordinance No. Page 2 WHEREAS, the hearing was held at the time and place as advertised, namely 6:00 p.m., September 22, 20Q4 inlþe Council Chambers, 276 Fourth A venue, before the Planning Commission and the Planning Co~ission recommended approval of the Project to the City Council and said hearing was thereafter closed. NOW, THEREFORE, BE IT RESOLVED THAT THE CITY COUNCIL of the City of Chula Vista does hereby ordain as follows: 1. PLANNING COMMISSION RECORD The proceedings and all evidence introduced before the Planning Commission at their public hearing held on September 22,2004 and the minutes and resolutions resulting therefrom, are hereby incorporated into the record of this proceeding. These documents, along with any documents submitted to the decision makers, and those documents specified in Publi Resources Code Section 21167.6, shall comprise the entire record of the proceedings for any California Environmental Quality Act (CEQA) claims. II. COMPLIANCE WITH CEQA The environmental impacts associated with the Planned Community (PC) District Regulations for Village 7 have been analyzed in the Final Environmental Impact Report (FEIR) 40-06. The City Council finds that the FEIR 04-06, the Findings of Fact and Statement of Overriding Considerations, and Mitigation Monitoring and Reporting Program have been prepared in accordance with the requirements of the California Environmental Quality Act (CEQA), Public Resources Code section 21000 et seq., the CEQA Guidelines, Cal. Code of Regulations, Title 14, section 15000 et seq., and the Environmental Review Procedures of the City ofChula Vista. The City Council furthers fmds that the FEIR 04-06 reflects the independent judgment of the City Council of the City of Chula Vista. III. ACTION The City Council hereby adopts an Ordinance to the Otay Ranch Village Seven Sectional Planning Area Planned Community District Regulations, dated August 24, 2004 and comprising Section 11.3 of the "Village Seven SPA Plan", finding that they are consistent with the City ofChula Vista General Plan, the Otay Ranch General Development Plan, Otay Ranch Village Seven Sectional Planning Area (SPA) Plan, and all other applicable Plans, and that the public necessity, convenience, general welfare and good planning and zoning practice support their approval and implementation. IV. EFFECTIVE DATE This Ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. 2-~ Ordinance No. Page 3 Presented by Jim Sandoval Planning and Building Director PASSED, APPROVED, and ADOPTED by the City Council of the City ofChula Vista, California, this l2'h day of October, 2004, by the following vote: AYES: Councilmembers: NAYS: Councilmembers: ABSENT: Cotmcilmembers: ABSTAIN: Councilmembers: Stephen C. Padilla, Mayor ATTEST: Susan Bigelow, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Susan Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing Ordinance No. was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the l2'h day of October, 2004. Executed this 12th day of October, 2004. Susan Bigelow, City Clerk KICOMMDEVVimHIViIlage7CC101204IV7 SPA Plnd Comrn DIST REG ORD CCIOI204.docl0/5/2004 2,-,3 COUNCIL AGENDA STATEMENT Item No j Meeting Date 10/19/04 ITEM TITLE: RESOLUTION APPROVING REQUEST FROM THE CHULA VISTA HIGH SCHOOL BAND AND PAGEANTRY CORP AND THE CHULA VISTA SCHOOL FOR THE CREATIVE AND PERFORMING ARTS TO CONDUCT THE 8TH ANNUAL BAND REVIEW AND AUTHORIZING TEMPORARY STREET CLOSURES A~IVING CITY FEES FOR POLICE SERVICES. . SUBMITTED BY: Chief of Police V/f,øv"" Director of Human Resou~~s Director of Public WorksY REVIEWED BY: City Manage?t yl"' (4/5ths Vote: Yes_ No 2L) The Chula Vista High School Band and Pageantry Corps, in conjunction with the Chula Vista School for the Creative and Performing Arts, is requesting permission to conduct an organized band review on Saturday, November 13, 2004. RECOMMENDATION: That Council adopts the resolution approving the waiver of City fees for police services and authorizing temporary street closures for the organized band review subject to staff conditions. BOARDS/COMMISSIONS RECOMMENDATIONS: Not Applicable DISCUSSION: Chula Vista High School Band and Pageantry Corps, and the Chula Vista School for the Creative and Performing Arts, (band review sponsor) is requesting permission to conduct their 8th Annual Band Review parade on Saturday, November 13, 2004. The parade will consist of approximately thirty marching bands and marching groups and over 1,500 participants competing against one another for top honors and awards. The participating groups in the parade will stage on the south side of Sear's, 500 "I" Street. The proposed parade route will take place going west on "I" Street to Broadway, south on Broadway to "K" Street, and east on "K" Street to the Chula Vista High School football stadium. 3-1 __u. Page 2, Item :3 Meeting Date 10/19/04 The parade is scheduled to take place between 8:00 AM and 10:30 AM. The street closures would be in effect from approximately 7:30 AM to 11 :00 AM to allow for the dispersion of parade participants. The Police Department will monitor the progress of the parade, and will close and subsequently reopen streets and intersections as quickly as possible. The sponsor will also provide teaching staff to accompany each band to monitor the progress of the parade. A diagram of the parade route is attached (Attachment A). The street closures will have an impact on City bus service in the area. Transit has agreed to cancel and re-route bus service in the area during the parade, and erect signs of the interruption of service. Approval is recommended subject to the following conditions: 1. Prior to the event, Chula Vista High School (Chula Vista School for the Creative and Performing Arts - parade sponsor) shall provide evidence, acceptable to the City, of commercial general liability insurance in the amount of $5 million in the form of a Certificate of Insurance and Policy Endorsement naming the City of Chula Vista as additional insured (Attachment B). 2. Adequate police coverage at the event as determined by the Police Department through coordination with the Department's Special Events Coordinator. The parade route will be marshaled by Police and Police Department volunteers. 3. Adequate traffic control equipment and devices as determined by the Police Department. The sponsor will be responsible for renting or purchasing the equipment and delivering and removing it from designated locations. 4. Posting and removal of "No-Parking" signs along the parade route. 5. Provision and subsequent removal of adequate portable toilets and trash receptacles at the parade staging area and at Chula Vista High School. 6. Provide a letter acceptable to the City Attorney from the sponsors in which they agree: (1) Not to sue the City, its agents and employees from any act arising from the Band Review; or (2) To defend, indemnify, release, protect and hold harmless, the City, its agents and employees from any and all liability arising from the Band 3-2 Page 3, Item :3 Meeting Date 10/19104 Review, excluding only that liability which may arise from the sole negligence or sole willful conduct of the City. The Chula Vista High School Marching Band and Pageantry Corps has also made a formal request to the Mayor and Council asking that fees associated with police services for this year's Annual Band Review be waived (Attachment C). In calculating fees for police service, staff estimates it will cost approximately $5,014. The cost was calculated based upon police services from 6:30 AM until 1 :00 PM. The use of volunteers is based on availability; however, staff is confident that up to ten volunteers (Explorer Scouts and Senior Volunteers) will be available for this year's event. The Annual Band Review is expected to draw 30 participating bands and pageantry groups from the San Diego Region, as well as portions of Southern California. As in the past, the Band Review provides a positive image and venue for the youth in our community. FISCAL IMPACT: Staff estimates it will cost $5,014 to provide Police coverage at the event. These costs will be absorbed in the Police Department budget, therefore no appropriations are required. 3-3 '- ~ ,. I , ~ , - }\, - 'n, ;;. ----------- (1¡)'/~~O"04 14:49 F.~ 6192369134 JOHN BIJRNHA)! INS SERV 'l ';(11 ATTACHMENT B II Joh, '"""om . ,Insurance . Services FROM TH; DESK OF... Te'I1'ie T. Carney, ell: AC:1:,~unt 'AClnager Co.·\merdallnsurance Dli"!d: (619) 525-2836 Fa,d: (Ij 19) 525-1863 EnlcliI: CCfi'ney@johnburnham.c:om '. ~,,~¡;... f,J.!?~.",.... ., ,.,...""".',,"" . ~~ . .. ,. .~~ .- .. ,..······,"'U~ ,~v··,,',.' "". '~i""'" '17öJf, ~'. '~'~,:\¡I;I~:lI.k' "&!!¡\ rrli'·, ~i~'ot''¥(' I Iõ ',;[F! 1,1 ø ~' 'i' 1!11i:¡:t.i¡:... I ~ . ,l¡4'~¡~.¡:::¡,1Ii... .j¡lI:ø ¡¡:: ~'..L~~. :,11 ¡~~~~:~1.~~~1(':~~~:P.I:!~~~~~'i¥~~~~~JI~el~~j~~~~Jì~iÎ¡~1~~~~1:~~iI~,¡1rr&li1¡~~1 tì~::k;'~ r,f~ L,n hhn Bumham & Companyj750 B St.. Ste. 2400/San Diego. CA/92101/Ph()nd{ 619) 231-1 e'll) DATE: Septernber30.2004 TO: Chula Vista Police Deparlment Arrr:NTlCì-N: Carol Snyder F~\X4l>: 40'1-5435 41> P,!\GES: 5 RE: Sweetwater UHSD ==-=:=-:== ~_.~-=:=:=~"'..,::=. ,=, G:¡r:>l: AitClche,d yoü will find certificate of insurance as requested. 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DlslflGt INSURER c: Servicas pørmlsI'ion 1130 Fifth ',I'enu& INSU.....O: -------.-......---- -,,,... -.-.". ClÍula Vista, CA 91911 INSU""H: ------.-....-. .- - ..--". -".... ._...,......---...----.- --_____0.--·.-· ..~-......,",.. (~;)\rr;It.\GI;!i __::¡ ii;;:;¡:~;;:SoFï~¡U¡;¡;¡:¡ë E uSTED BB.OW ,"vE BEEN ISSUED TO THE INSURED NAMED .-sOVE FOR THE pO~JCY ps¡¡ë¡C¡d iJE;:;:ï¡¡jí~r ì;¡ i in:;¡:·;..··..· "''' R;cLI'!EMErrr TERM OR ÇQNDIT10N OF ¡\NY coNTAACT OR OTHER DOCUMENT W11'H RESPECT TO WHICH 1HISCE,rr;FlCATEM',113E¡ ",'. I!¡ . F. I.LI\' ?iI'TA:N. THõ trISUR.O~CE AFPOROED BY THE PûUCIES DESCRIBED HeREIN IS SUBJECT TO All. THE1ERMS. EXCLUSlorISA"D ",,,'Dr' Q't1 C I 3LC'I I~(lll; 58. A~GREGI¡"Ellf\jlrrS$HOWN Mf¡..V I-UI~ BEEN REDVCED BY PAlD CLA.lMS. 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UABIlITY COMB~.f.DSIIICLE UI.\IT ,~ JoN'( 'Ul'O (Euce·dl}nt) I'" == ALL"^,'EDAUnJO :;Lyl<JU!';------t-- --.....- -.-.... __ SCHIO_LEDAl"OS (P""'''') .' ------..-.---.. ._--- ---...-...... __ /'iIRet.¡\UT09 e;t)Dl"r~.Il5<Y __ NON...(\1'NêD,A.lrœ (per.;¡cjtanl) I 1-'-----.-.--- ------...-.....-.. _ _____ PI1.0FE.RN Df\MACìI= ,0 (FtndtlM( . , _..~. -- -- --- ----- ..._-----_.......~"..- J~RAGELI.I\3IUTY A'JTlJm¡.Y'-5AA~::¡>Bt;· 1 1:""..rra ~'-----..-;.;:-,;::.;... ---...-......-.' __ OTtlEP.11'1ACo/ -~_:'~ ....-- -"-'" -....... _. _ __ _.__ AJT':JI~~__.._.~~:!. ,,:.__ ___... _'M'" .. 1~:;E!iSlJllnREl..lJ.I,LWlUTY b\CH,,,;CUflRI:NC:! j =..1oom: []ClAIMSMAOE ~:;;;;;;~-"-'-'-rï-- ....-...-..-.. .. __ ~~_===:==:= L;:~:::=::: =:::::. l__jOECW"BlE ____---.-...-lL- ---...-.....--. j_._ _____ ~"['E!!~- s . ,1 . !'IJAKEIIS CO"T1!.NSATI(JtIAJoID J~~:ST~:ru:-r-'](:!~j"""" - ---... -..... ,- .- I 1.~~)'f"""''''''UTY -- _~!:I:>J)m1-. ,,,I. ---' ---... ..--.. .. : .\IIY 1"~IPRlEl'CIP..'PARTtoi¡w:æCUTJVE .!b:.Ë:!~!:iÆ:~!~!._~.- _!~.. ".---" ........-- .. 'I 1;I':Ft::I=t'JMer.4ll1iREXCI.UcED? eJ..DI5:;ASE-EAH"IJU:~·~: 1; rlllli.'S'iCI1~IJIIC'l!r I-=:....------.--...-..-~-- --_.,.-~........" L..___~dl¡J,.I"I'tO\t£i!.f)NSbe.:!!:1 ¡.1...OIS~E·PO,.C1·U",I' II , ')rHGI¡- - ----.-.-..- ..... --"--'''''-'' I ~ , . . G¡i¡;¡¡¡¡;¡:õÑ¡;¡;Ö¡:¡.;"'ONS ,.o<A11ONS, ",,"ICU"' r excwOIOHS ADDEO n ENDORSEMe..,. I SPECIAL .00'l1010NS -..-.-.....---- - ---'" -.--.... .. ~1¡~': Chula Vlsl" I!and n...lI8W on SatJ.¡rrlay, November 13. 2004 along Broadlway fr",," II~' Ie Stfl.'~ Ch ula VIsta. CA. The City of Chula VIsta, its. 1J1Iït:u's, ¡¡genis, and I)mployeel are 21dáitional insured in relation to 1J11J',., "l'uatiol1';, us~. occupations, acts, and activities described I.hl' Þ.1h:h9d t.~scri!'ti~ns) t~ill!!!Ç~.TE H~: DER _ CANCELLA TIOII Ten Da.lj;i~Lb ![.tiQ;;;:I~;;;;;¡ ;,:~ i ~;;~; ¡ ~;~: ~ ::: S.HOULD AltY OFTHEA8CYE DI5SC-RJI!Et' prJ(.ICIES [,I! c,rlCl!Uf.') I!:~I;¡ I .¡ 7H1 ¡ I; P\~;·J; ~I Citf of Chula Vista DATE "I1-IERæoJ:. iHEISS\JINGINSIJR£R"'Il.LElDEÞ:/ORT,J ,'IN... _;;UJ. ell: ..~ ',,1nf 2764th Avønue NOTICE T011iECERl1f1CATSHCLDERNiWetJfDUfe 1.E1!f, lilT' :-.¡tII WI..'; ''(.')I If~.IHI·;I,,! CluJls VIsta. CA 91910 IMPo$ENO OBUGA'nON OR UA8um CI~AN1' I~tm JPOII n!¡I;:¡jt!p::n r i,l.Grrr"9 :IF. REPRESENTA11VES. AU11-fOIU2EDREPR1æSGNTATlVE ------.--~...--- ---.......-..- ... ...._______.._.. ß,...!..... e.~l _____.._--....... ..--........".... I\CC)IID:~ (2001/UB) 1 oU tiM111439 3-6 lTI~ € AIXHjI~::IPCIT;':l:I.II, 11' _.._...!~!/~!J/~04 :l4: 5!J FAX 619236£'134 JOHN BURNHAM INS SERV ~",(,> . "-........------- ___._~__4__· ___.... ......, IMPORTANT If the ~HtIlicat. holder is an ADDITIONAL INSURED, the policyOes) mU$t be endors'3d. A stE':elTlo,,1 cn this ,:ertifiCate does nol confer rights to the œrIifIcate holder.1n ITeu of such endorsam9nt(s). If SUBH,JGATION IS WAIVED, subject to the !amlS and conditions of the poITcy, ~1!I1a¡' p,lIcj¡~.s nEt' r.quira an endorsement. A statement on this cer!iñcate does not confer rights I» the, CE,,1ilì,,~ I. t,c>lder Ir. lieu of such 9ndorsement(s). DISCLAIMER I I 111' CHlilicate of Insurance on tI1e reverseside of this form does not constitute a conlr¡ct !Je[\IM~1 th,) isslling insurer(s), authorized representative or producer, and the certlfcate holde,. nor 10'"' I: af1irmat"e~J or negativaly amend. extend or alter the coverage afforded by the p~Ucle3listed Ih'!"Mr,. ì ! -..----.--.-....-. ..\ ;j:~:;¡i¡' 2fi~J (2001/IJB) ¡¡ of3 1#11118439 3-7 -. ._-~-- ._~_.- (JJ11~(J/04 14:49 F.\X 619236~134 JOHN BURN1WI INS SERV ~¡; C':3 .-...........--- ......--...........-...--...-'''... .. DESCRIPTIONS (Continued from Page 1) ------- - .~--_. --- -.. -....... - s¡ II ngnU)' above, IncltJ c'ing activities of the named insured. its off1 cersJ i¡Junh., e nlplo~ftlms Dr 1'1Vltees, or activities pertormed on behalf of the munmt iris ureè:. Íi ¡ ~ [ , i I , i i .......-- _._-~......~----".. -.-"- ... , ,~JII! :!5.:i, Ç!OO1Þ18) 3 of3 N16439 3-8 ______.1'II/"Q/04 14:49 F.\! 619236Q134 JOHN BURNHAII INS SERV p.; '(i! , . .~ ". " -"", ." ". ~()?;s::3~~'T -' . '. ..", . .' .. . '. :.... . . ,.', .. ..'~::' ". ';"'. '. \ I . JO, .. sp-~ Ð:C;$S LlASF...itt,' ÞOU~ ?D~ i"UWC: ;!Ji ~ I.as . :'. .. '- ADPmONA,lINSUfm) -ENDOr:s~æwr . . , , . Thi$' P.oHt:¥ i. hilrl!>by arnenœd .~ foUQW&: .. ·s=c:noN.i'I, WHO IS M J!I.'SI,JREP is am~l!>d to ihc:!uoe:: Any pa....!1>on Or IIntiTy to whom t!'i& ¡'¿arrl'ed lns:\II'ed is o:>li¡¡œd by 'MJe .. of !'1 ¡,.,S;UJ'1Od c:o:rtrac:t ~ provi!:le insuran~' !IO\=iy with re!:p!!e:t ';0 . - . . I>c>óily in)ury and FO~ çllUTlbge afforded by ¡;t¡!¡ ¡>on~. . Unlus weh' IDa¡Q...d oon1nllt iõ o\1"o$ide the !)~rmal t:Ourse of the In;\uad', . opõnti 01".5:, $Sid pi!>rson I;Ir em!ty shall be c:ov.er.i!>d Ol'l~.to the ïtx:tlOl'lt ~f þ'.Jcr,. I;IÞõga'dcln of- :tM l[\SUrIid.. and th!Ó1 only with l'aS?Bqt .to- ' : c>pe,¡lrtil;lnsþy or eln behe.1f I;If the lnsurl'<i, ." of i'ac¡¡r¡¡~. of tÏ'1e lr..'>W'I>d, . or a~ t~ci¡ttj!lS used by th.. msur.!>cf. '. . ; ." . ~ .. ". - ALL on-I.,., ï5PJ.r.5 AND CON!>mONS 0;: nus i"OUCY R91.AlN Ui'lCHANCõ:C - -, , " ëff'"~tiY¡i da~! .cf this er'kcorssment ï.: J'CLY' 1. 2~04 - .-...... ~'-:ta::h"d,to 3nd Terming þart of Pcli~y No, 4204-1905 111E ¡NSUp.,4NC~ r;::C::N"P,~,;'I'" ,:)f THE STAíE OF P;¡jlIN'ì1.\I:,'I). I.;.~ Je:d t:;; SAN DlëGO C:¡UN"iY SCHOOLS RISK IvL~GEMENT J~A " .- ey ----........ .. ~ .' :J¡n.,.;!; . JIDTI!.14. 2DD4 ." . . .. .: .. ~ '.. ., .. .. - .. .. ., ~DÓ"S5§"~ . - ATTACHMENT C \'\-:l'tli\h:d >itud...·n1 :Jo<1\ CHULA VISTA HIGH SCHOOL A CA.s.C. Medallist Organiztzticn 8204* Av."".. CIwIa Vi..... CA 91910 Ph: (619) 427-11030 Pax: (619) 425-3330 Octr:lbcl 1, :1.0'1 Cit)- () f ChillI!. Vista C/O Agent Cvol Snyder ['ax: ,109-5435 .Dear City Officials, Again tIús year, 'Chula Vista High School and our School for Creathoe Imd Pt,::foOll rJi. Li~ Arts ~I'ill belSt the annual Band Review on November 13,2004. This y=ar tb.e parade, rl)1Jll~ 'l'i.J be ou Broulway betweCJ~ I and Ie. By this letter, Chula Vista High School requests ß~J«: h~ ( IJ' ,:Jf Chula Vista, a wavier of all city charges and fees associated this traclitic·naI: ·wmm]Ui~tY~-"l t t. Your t:Onti[IÐÍng coopcmtion and support for this parade is much appreciated and we, b'JI¡'~ j ,:11 1 will Iq;ainpennit this parade to be conducted at no cost to the students or ¡¡<I'1)I~IS el~~ Gill\;1 'fist!. Higb. Bincf:t.·~ly, l'/'íjr t u.~ /~ MikJl nwifi~ AssÎ!tant P'rincipal of Student Activities ~I'he $,¡~ Union High School District doe$ not diocrim.iJJat,c with nogard to sex, race. rcliIJÎOI1. c<,lor', 1111 II ," I oligi., I~r(ctbnicity. marital or pørcntallllatus, age, physical or II)Cnta1 disability, =1J'tl ",iroUtiOlI crlT:) a lbef u(,awfu <XJÐ8ldcration.· SUHSD Administrative P\)icy 12224. 3-10 RESOLUTION 2004- RESOLUTION APPROVING REQUEST FROM THE CHULA VISTA HIGH SCHOOL BAND AND PAGEANTRY CORP AND THE CHULA VISTA SCHOOL FOR THE CREATIVE AND PERFORMING ARTS TO CONDUCT THE 8TH ANNUAL BAND REVIEW AND AUTHORIZING TEMPORARY STREET CLOSURES AND WAIVING CITY FEES FOR POLICE SERVICES WHEREAS, the Chula Vista High School and Pageantry Corp in conjunction with the Chula Vista School for the Creative and Performing Arts will be conducting the 8th Annual Band Review on Saturday, November 13,2004; and WHEREAS, the Chula Vista High School Band and Pageantry Corp has requested City fees for police services be waived; and WHEREAS, Law Enforcement related fees estimated at $5,014 dollars shall be waived; and WHEREAS, the Chula Vista High School and Pageantry Corp and the Chula Vista School for the Creative and Performing Arts will provide evidence of insurance in the form of a Certificate of Insurance and Policy Endorsement, acceptable to the City, in the amount of $5 million dollars naming the City of Chula Vista as additional insured, and their insurance company as primary; and WHEREAS, the Chula Vista High School Band and Pageantry Corp and the Chula Vista School for the Creative and Performing Arts will provide adequate traffic control equipment and "No-Parking" signs as specified by the Chula Vista Police Department; and WHEREAS, the Chula Vista High School Band and Pageantry Corp and the Chula Vista School for the Creative and Performing Arts will provide adequate police coverage at the event as determined by the Chula Vista Police Department; and WHEREAS, parade sponsors provide a letter agreeing not to sue the City, its agents and employees for any act arising from the Band Review to hold the City harmless, fully indemnify and release the City, its agents and employees from any and all liability arising from the Band Review, excluding only that liability which may arise from the negligence or sole willful conduct of the City: 3-11 NOW, THEREFORE, BE IT RESOLVED the City of Chula Vista does hereby approve the waiver of police service fees and authorizes temporary street closures on Saturday, November 13, 2004 for the 8th Annual Band Review sponsored by the Chula Vista High School and Pageantry Corp and the Chula Vista School for the Creative and Performing Arts. Presented by Approved as to form by SDo--7.~ Richard P. Emerson Ann Moore Chief of Police City Attorney J:\attomey\reso\specialevents\bamd review reso 2004 3-12 COUNCIL AGENDA STATEMENT 11 Item Meeting Date 10/19/04 ITEM TITLE: Resolution accepting bids and awarding a contract for the installation of a Traffic Signal at East Palomar Street and Davies Drive (TF- 314), to HMS Construction SUBMITTED BY: Director of General Services/City Engineer ~ REVIEWED BY: City Managerqr; t' (4/5ths Vote: Yes.x.. No~ Installation of a traffic signal at the subj ect intersection was approved and budgeted as part of the FY 2003-04 and FY 2004-05 Capital Improvement Programs (CIP). The scope of the project includes the installation of fully actuated traffic signal system and other work necessary to complete the proj ect. RECOMMENDATION: That Council adopt the resolution. BOARDS/COMMISSIONS: Not applicable. DISCUSSION: The intersection at East Palomar Street and Davies Drive is a four-way intersection situated in the eastern part of Chula Vista. This intersection is adj acent to the Plaza at Sunbow (located on the northwest comer) and Veterans Park, which is currently under construction (located on the northeast corner). Single-family homes are situated on the south side of this intersection. This intersection was ranked number two in the 2003 Traffic Signal Priority List. The scope of work is summarized in Attachment 1. The TF-3l4 project was initially funded to install a traffic signal at the three-way intersection ofEast Palomar Street and Medical Center Court (located I block east of Davies Drive) to help accommodate traffic around the future Veteran's Park site. As the design of Veteran's Park progressed (with the entrance to the park located at Davies Drive), it became clear that the intersection at Davies Drive would require a traffic signal before the intersection at Medical Center Court to best accommodate the expected traffic. Staffbelieves that by switching the priority of these two signals the movement of traffic at this location will be improved. On September 1, 2004, bids were received from the following contractors: Contractor Bid Amount HMS Construction, Incorporated (San Marcos, CA) $131,403 ABC Grading & Paving a Joint Venture dba ACE $133,570 Electric/ABC Construction (San Diego, CA) Lekos Electric, Incorporated (El Cajon, CA) $134,500 The low bid, submitted by HMS Construction, is above the final engineer's estimate of$12S,000 by $6,403 (less than 5%). The higher bid amount is due to an increase in costs for both material and 4-1 Page 2, Item 4 Meeting Date 10/19/04 labor as shown on the contractors bid proposals. HMS Constmction has recently installed a traffic signal project in the City with satisfactory performance. Disclosure Statement: The Contractor's Disclosure Statement is provided as Attachment 2. Environmental Status: The Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that the project qualifies for a Class 1 categorical exemption pursuant to Section 15301 of the State CEQA Guidelines. Thus, no further environmental review is necessary. FISCAL IMPACT: L--------~---: FUNDS REQ!Jl~D FOR CONSTRUCTION I I A. Contract Amount (HMS Construction) $ 131,403 I ¡" 'I ii B. 10% Contingencies $ 13,200 II LC. Staff Costs; Design; Inspection $ 55,397 ì i TOTAL FUNDS REQUIRED FOR CONSTRUCTION $ 200,000 i ;"o'mm'.""""'''"......'''''''....m_m~m'..'.....=..",........,'''"''''''''''',..".""....'''''........,'.....'m"..".m""''''''~m..~mm'm...''''''''''''..''''''''''''''''''''''m'......,.,,'''''''....'m..='''''''...."'""'mm"..."""'"'.........m'..'='m~...m....m...........'_""'" II FUNDS AVAILABLE FOR CONSTRUCTION I I A. Traffic Signal Fund i $ 200,000 :1 ¡!TOTAL FUNDS AVAILABLE FOR CONSTRUCTION - . l $ - 200,000 i '"_'m....'''''''''..."......,........."''.."~............,......'''''''''''....."'........'''''''''..,..,,......'''''',.,.,.=,.."'"........="""..m'.......""m....."w'.."'...,....,........'m'..."........""=m...""'~~.._...""""'..""..,.,-="""...."""..=......"""""''''"..''''...,J Constmction will be entirely funded from Traffic Signal fi.mds. Upon completion of constmction, normal annual signal energy and maintenance costs are estimated to be $4,500 for the intersection. Attachmen ts: Attachment 1: Scope üfWork Summary for projects TF-3l4 Attachment 2: Contractor's Disclosure Statement Attachment 3: Vicinity Map J:IEngineerIAGENDAITF314Al13.mlcm.doc 4-2 Attachment 1 Scone of Work Summary Proiects TF-314, Furnish and Install: · New Traffic Signal Standards · Mast Arms · Signal Light Emitting Diode (LED) Indications · Wiring · Video Detection System · Conduits · Luminaires · Pull Boxes · Internally illuminated Street Name Signs (IISNS) · Signal Controller and Cabinet · Meter Pedestal · Uninterruptible Power Supply (UPS) Unit · Signs · Striping · Emergency Vehicle Pre-Emption (EVPE) System · Traffic Control Other Work: · Grinding/Sandblasting and Resurfacing Pavement on Conflicting Striping and Legends · Removal and Salvage of Existing Street Light Mast Arms, Luminaires, Existing Signs · Protection, Restoration, Removal and Disposal of Existing Conflicting Improvements · Construction of all Appurtenances and other Miscellaneous Work Necessary to make the Traffic Signal Systems Complete and Operational. 4-3 ATTACHMENT_ 2 - CITY OF CHULA VISTA DISCLOSURE STATEMENT Pursuant to COWlcil Policy 101-01, prior to any action upon matters that will require discretionary action by the Council, Planning Commission and all other official bodies of the City, a statement of disclosure of certain ownership or financial interests, payments, or campaign contributions for a City of Chula Vista election must be filed. The following information must be disclosed: 1. List the names of all persons having a financial interest in the property that is the subject of the application or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. }/ 1ft ..- f 2. If any person" identified pursuant to (1) above is a corporation or partnership, list the names of all individuals with a $2000 investment in the business (corporation/partnership) entity. ( IV / ft I 3. If any person" identified pursuant to (1) above is a non-profit organization or 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. N!f( ( 4. Please identify every person, including any agents, employees, consultants, or independent contractors you have assigned to represent you before the City in this matter. I {It' fill 5. Has any person" associated with this contract had any [mancial dealings with an official"" ~ City ofChula Vista as it relates to this contract within the past 12 months? Yes_No_ 15 \\Citywide2000\ho~e\EngirteerITRAFFIC\ACAD DwgslCIP PWLIlfTS' TF -314\EPa-Daviesl TF-314SpecsfinaJ.doc If Yes, briefly descnèe the nature of the financial interest the official"* may have in this contract. 6. Have you made a contribution of more than $~thin the past twelve (12) months to a current member of the Chula Vista City Council? No _ Yes _ If yes, which Council member? .'- 7. Have you provided more than $340 (or an item of equivalent value) to an official** of the City ofChula Vista in the past twelve (12) months? (~includes being a source of income, money to retire a legal debt, gift, loan, etc.) Yes _ No_ If Yes, which official** and what was the nature of item provided? Date: A~ IZ,:Joc'¡ ~~,,-f Signature of Contra tor/Applicant ROIV4t.ø S-CJ.II.I eJ DiSf- Print or type name of Contractor/Applicant * Person is defmed as: any individual, finn, co-partnership, joint venture, association, social club, fraternal organization, corporation, estate, trust, receiver, syndicate, any other county, city, municipality, district, or other political subdivision, -or any other group or combination acting as a unit. ** Official includes, but is not limited to: Mayor, Council member, Planning Commissioner, Member of a board, commission, or committee of the City, employee, or staff members. 16 \\Citywide2000lhomelEngineerlTRAFFIaACAD DwgslCIP P~SITF-314IEPa-DaviesITF-314Specsfinal.doc -.--.- ATTACHMENT -3 1 ."~ '" . 1'\1. s~ PROJECT :r: 0 SITE r- V) ....V) .... '" MAIN ST '" 5 4TH >IV 805 \ J VICINITY MAP NO SCALE PROJECT FILE ¡¡TFJ/4 TITLE: CITY OF CHULA VISTA PREPARED BY: MLCM SHEET TRAmC ~GNAL INST Alli] _ T E PALOMAR ST /DA ',1ES DR APPROVED BY: OF SHTS JRN RESOLUTION NO. 2004- - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING A CONTRACT FOR THE INSTALLATION OF A TRAFFIC SIGNAL AT EAST PALOMAR STREET AND DAVIES DRIVE (TF-313) TO HMS CONSTRUCTION, INC. WHEREAS, on September 1, 2004 the Director of General Services received the following three bids for the installation of a traffic signal at East Palomar and Davies Drive (TF- 314); and Contractor Bid Amount HMS Construction, Inc. (San Marcos, CA) $131,403 ABC Grading & Paving a Joint Venture dba ACE $133,570 Electric/ABC Construction, Inc. (San Diego, CA) Lekos Electric, Inc. (El Cajon, CA) $134,500 WHEREAS, the low bid, submitted by HMS Construction, Inc. is above the City Engineer's estimate of$12S,000 by $6,403, or less than 5%; and WHEREAS, General Services staff checked the references provided by the contractor and all references were verified and their work has been deemed satisfactory; and WHEREAS, staff has reviewed the low bid and is recommending awarding the contract to HMS Construction, Inc. of San Marcos, California; and WHEREAS, the Environmental Review Coordinator has reviewed the proposed project for compliance with the California Environmental Quality Act and has determined that the project qualifies for a Class I categorical exemption pursuant to Section 15301 of the State CEQA Guidelines. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby accept the bids and award the contract for construction of a traffic signal at East Palomar Street and Davies Drive (TF-3l4) to HMS Construction, Inc. in the amount of $131,403. BE IT FURTHER RESOLVED that the Mayor of the City of Chula Vista is hereby authorized to execute said contract on behalf of the City of Chu1a Vista. Presented by Approved as to form by 'be--. 7. H-.-- Jack Griffin Ann Moore Director of General Services City Attorney J:\attomey\reso\bids\Traffic Signal- E Palomar & Davies.doc 4-7 -- COUNCIL AGENDA STATEMENT Item 5 Meeting Date 10/19/04 ITEM TITLE: Resolution approvmg the Drainage Maintenance and Indemnification Agreement (McMillin Otay Ranch Village 7 Grading) between the City and McMillin Otay Ranch, LLC. SUBMITTED BY: Director of General Services / City Engineer ~ 0J REVIEWED BY: City Manager 1: I)' (4/5ths Vote: Yes_NolO A condition of the approved Tentative Map for McMillin Otay Ranch Village 7 requires the developer enter into an agreement with the City to satisfy certain conditions of approval and mitigation measures prior to issuance of a grading permit for the Project. RECOMMENDATION: That Council adopt the resolution. BOARDS/COMMISSIONS: N/ A. DISCUSSION: On October 12, 2004, Council approved the Tentative Map for Chula Vista Tract No.OS-07 McMillin Otay Ranch Village 7. The proposed Drainage Agreement between the City and McMillin Otay Ranch, LLC encumbers the entire McMillin ownership within the Village 7 SPA area. The proposed agreement accomplishes the following: · Requires McMillin to provide for the appropriate maintenance of drainage, temporary desilting and storm water quality facilities until such time as they are accepted for maintenance by the City or a maintenance district; · Provides that sufficient security (via a cash bond) will be available to guarantee the performance of said maintenance obligations; · Indemnifies the City against any damage, or claim for damage, arising from construction, maintenance, operation of drainage facilities or non-compliance with Storm Water Quality and National Pollutant Discharge Elimination System (NPDES) regulations; · Provides that McMillin will implement all elements of the adopted Mitigation Monitoring and Reporting Program of the Second Tier FEIR 04-06 for Village 7 that pertain to grading impacts. McMillin is currently processing rough grading plans for the grading of pads, including the site of High School No. 13, and construction of drainage, temporary desilting facilities and a water quality detention basin serving Village 7 and the EUC. Issuance of a grading permit is anticipated before the end of October and after Council approval of the subject Agreement and Caltrans issuance of an encroachment permit for the construction of facilities and grading within the SR-12S right-of-way. 5-1 Page 2 Item í Meeting Date 10/19/04 FISCAL IMPACT: There is no impact to the General Fund. All costs associated with the construction, operation and maintenance of the drainage and storm water quality facilities within the Project will be borne by McMillin until taken over by the City or a maintenance district. Attachments: 1. Location Plat Exhibit A: Drainage Maintenance and Indemnification Agreement J:IEngineerlAGENDA I CAS McMillin Village 7 drainage agreement.drs.doc 5-2 - / .;:;,;;..--' - --.- 1 ~ ü ~ 500' 0' 500' .---- . GRAPHIC SCAI,.E: 1"=500'· 8 ~ z o p>..1'I ~ u rl . 1-------- I ~ I I I I I I ~1'I I I I I I I ,L \ -- , ------ - y - ~XHIBIT A-1 VILLAGE OF VISTA VERDE Ii1i1 ~r:..c£~~~~I'fl~~,I~C. SITE PLAN _ ~0IE~)~~f'~oa:¡g1_1471 .t4 175221 OCTOBER 7, 2004 RESOLUTION NO. 2004- - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE DRAINAGE MAINTENANCE AND INDEMNIFICATION AGREEMENT (MCMILLIN OTAY RANCH VILLAGE 7 GRADING) BETWEEN THE CITY AND MCMILLIN OTA Y RANCH, LLC. WHEREAS, on October 12, 2004, Council approved the Tentative Map for Chula Vista Tract No. 05-07 McMillin Otay Ranch Village 7; and WHEREAS, condition 81 of the approved Tentative Map for McMillin Otay Ranch Village 7 requires the developer enter into an agreement with the City to satisfy certain conditions of approval and mitigation measures prior to issuance of a grading permit for the Project; and WHEREAS, the Drainage Maintenance and Indemnification Agreement, attached as Exhibit "A," between the City and McMillin Otay Ranch, LLC encumbers the entire McMillin ownership within the Village 7 SPA area. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula Vista does hereby approve the Drainage Maintenance and Indemnification Agreement (McMillin Otay Ranch Village 7 Grading) between the City and McMillin Otay Ranch, LLC, 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 to execute said Agreement. Presented by Approved as to form by Jack Griffin Director of General Services J:\Engineer\AGENDA\Resos\Drainage Maint Indemnification Agmt-McMillin OR, lO-19-Q4.doc 5-4 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL P /JILd ..., Ann Moore City Attorney Dated: 10/13/04 DRAINAGE MAINTENANCE AND INDEMNIFICATION AGREEMENT (McMILLIN OT A Y RANCH VILLAGE 7 GRADING) 5-5 Recording Requested by: ) ) CITY CLERK ) ) When Recorded, Mail to: ) ) CITY OF CHULA VISTA ) 276 Fourth Avenue ) Chula Vista, CA 91910 ) File No. OR-451G DRAINAGE MAINTENANCE AND INDEMNIFICATION AGREEMENT ( McMillin Otay Ranch Village 7 Grading) This Agreement is made by and between McMillin Otay Ranch, LLC (referred herein as "Developer"), and the City of Chula Vista, a California municipal corporation ("City"), with reference to the following facts: RECITALS A. Developer owns approximately 170.1 acres of that certain real property, as more particularly described in Exhibit "A" and as shown on Exhibit "A-I", within a portion of what is commonly known as Otay Ranch Village 7 ("Village 7") of the Otay Ranch planned community (Hereinafter referred to as "Property"). B. On October 12, 2004, the Chula Vista City Council, pursuant to Resolution No. 2004-_, and in accordance with the California Environmental Quality Act (CEQA) (pub. Resources Code Section 21 000 et seq.), certified the Final Second Tier Environmental Impact Report 04-06 for the Village 7 Sectional Planning Area Plan ("Final EIR") and approved, made certain Findings of Fact, adopted a Mitigation Monitoring and Reporting Program, and adopted a Statement of Overriding Considerations. C. On October 12,2004 the City approved the Sectional Planning Area (SPA) Plan for Village 7 by Resolution 2004-_. D. On October 12,2004, the City approved a Tentative Map, known as McMillin Otay Ranch Village of Vista Verde, Tract 05-07 (Herein referred to as the "Tentative Map"), for a portion of the Otay Ranch Sectional Planning Area for Village 7 by Resolution Number 2004-_ ("Resolution"). Said Tentative Map proposes certain grading work, drainage improvements and the construction of storm water quality management facilities ("NPDES l 5-6 -. facilities") within the Property. F. Condition No. 60 of the Resolution, as more particularly set forth on Exhibit "Boo, requires that Developer provide drainage improvements in accordance with the "Village 7 Village of Vista Verde Preliminary Drainage Study", dated May 24, 2004 and shall maintain all drainage improvements constructed within the Property until said improvements are formally accepted by the City, an applicable maintenance district, or another mechanism as approved by the City. Said maintenance shall ensure that drainage facilities will continue to operate as designed. G. Condition No. 81 of the Resolution, as more particularly set forth on Exhibit "B", requires that, prior to the issuance of any grading permit for the Property, Developer shall enter into an agreement with the City, wherein the Developer agrees to: 1.) comply with the requirements of the Storm Water Management Standards Manual; 2.) indemnify and hold the City hamùess from and against all fines costs and expenses and damages arising out of non-compliance with the requirements of the NPDES regulations; 3.) to not protest the formation of a facilities benefit district or any other funding mechanism approved by the City to fmance the operation, maintenance, inspection and monitoring of NPDES facilities. H. A Mitigation Monitoring and Reporting Program for the Village 7 SPA has been adopted which includes certain mitigation measures to be satisfied prior to issuance of any grading permit for the Property. These measures, as more particularly set forth in Exhibit "C", include the requirement that, prior to the issuance of any grading permit for the -" Property, Developer shall prepare a Wetlands Restoration Planes) to the satisfaction of the Resources Agencies and the Director of Planning and Building to mitigate for indirect and permanent impacts to wetlands. 1. Condition No. 122 of the Resolution, as more particularly set forth in Exhibit "B", requires the Developer deposit of funds prior to issuance of the first grading permit to guarantee maintenance oflandscape and irrigation improvements instal1ed within open space lots to be maintained by a Community Facilities District. The cash deposit shall be equivalent to the estimated cost of6 months of maintenance of the L&I improvements. Whereas, the City Engineer has determined that certain drainage improvements, detention basins, desilting basins, stonn water quality management facilities and erosion/sedimentation control facilities, as shown on Chula Vista Drawings Nos. 04068-01 through 04068-45 are adequate as of the date of this Agreement to serve the grading proposed for the Property on 2 5-7 said drawings. NOW THEREFORE, in consideration of the mutual covenants herein contained, the Parties agree as follows: / 1. Defmed Terms. The following defined terms shall have the meaning set forth herein, unless otherwise specifically indicated. 1.1 "Drainage Improvements and NPDES Facilities" shall mean certain storm water quality management facilities such as the Wolf Canyon Water Quality and Detention Basins and other permanent and temporary public or private drainage improvements, desilting basins, and erosion/sedimentation control facilities proposed for construction within the property as described in the "Preliminary Water Quality Technical Report for Village 7" dated May 24, 2004 ("Water Quality Technical Report") and shown on ChuIa Vista Drawings Nos. 04068-01 through 04068-45. 1.2 "Complete Construction" shall mean that construction of Drainage Improvements and NPDES Facilities have been completed to the satisfaction of the City Engineer. 1.3 "Maintain" or "Maintenance" shall mean to furnish, or the furnishing of, services and materials for the ordinary and usual maintenance required for the operation or implementation of the NPDES Facilities and/or the approved Wetlands Restoration Plan as set forth in a City and/or Resource Agency approved maintenance program. 1.4 "Resource Agency" shall mean the California Department ofFish and Game, San Diego Regional Water Quality Control Board and/or the U.S. Army Corps ofEngineers. 1.5 "Storm Water Standards Manual" shall mean the Development and Redevelopment Projects Storm Water Management Standards/Requirements Manual adopted -.' November 26, 2002 and all revisions thereto. 2. Drainage Improvements and NPDES Facilities. In partial satisfaction of Condition No. 61 of the Tentative Map, Developer agrees to the following: 2.1 Construction. Developer agrees to construct Drainage Improvements and NPDES Facilities, as shown on ChuIa Vista Drawings Nos. 04068-01 through 04068-45, as approved by the City Engineer. Developer shall complete construction of the Drainage Improvements and NPDES Facilities on or before the first anniversary of the City Council's approval of this Agreement. The Drainage Improvements and NPDES Facilities shall comply with all the provisions of the National Pollutant Discharge Elimination System and the Clean Water Program. Developer understands and agrees that Developer is responsible for obtaining all necessary permits, approvals and certifications, if any, from the applicable federal or.state agencies, including but not limited to Caltrans, 3 5-8 2.2 Maintenance. Developer shall operate and maintain the Drainage Improvements and NPDES Facilities in accordance with the Water Quality Technical Report, the "Maintenance Plan for Wolf Canyon (Otay Ranch Village 7)", dated July 15, 2004 ~d the approved Wetlands Restoration Plan as applicable, until such time as they are accepted for maintenance by the City, or a maintenance entity approved by the City. Developer understands and agrees that Developer shall be solely responsible for the maintenance and operation of the drainage improvements and NPDES Facilities and any liability resulting therefrom until such time as they are accepted. 2.3 Off-Site Siltation Removal. The Project will implement construction Best Management Practices (BMP's) as outlined in the Project's Sto= Water Pollution Protection Plan to control sediment transfer. In the event Developer fails to install said construction BMP' s, or of the failure of said construction BMP' s once installed, Developer agrees to remove siltation attributable to development of the Property from the existing Wolf Canyon Channel downstream of the Property until such time as all of the following have been determined in the sole discretion of the City Engineer and the Director of Public Works: all upstream grading within the tributary area to the Property is completed and all slope areàs therein are determined to be stable and not susceptible to erosion; and Drainage Improvements and NPDES Facilities are substantially completed; and erosion protection planting is adequately established. In addition, Developer shall continue to remove siltation attributable to the Property from Wolf Canyon Channel downstream of the Property until a maintenance entity approved by the City assumes maintenance of Drainage Improvements and NPDES Facilities. The City Engineer shall be solely responsible for determining if any downstream siltation is attributable to the Project due to the Developer's failure to install the Project's construction BMP' s or due to the failure of the construction BMP' s once installed. 2.4 Securities. Developer shall provide the City with maintenance securities, in accordance with paragraph 3 below, to guarantee Developer maintenance obligations hereunder. -" 3. Security for Performance. 3.1 Cash Deposit. Pursuant to Condition No. 122 of the Resolution Developer shall provide the City with a cash deposit to guarantee Developer's maintenance of open space improvements until the City accepts said improvements. Developer acknowledges and agrees that the City may, in the sole discretion of the City Engineer also expend said deposit to guarantee the Maintenance obligations under Section 2.2 and 2.3 of this Agreement in the event of Developer' s default in the performance of said Maintenance obligations. Should the City expend the deposit due to Developer's default of its performance obligations, Developer agrees to redeposit the equivalent sum of money needed to equal the amount required by Condition No. 122, within 30 days of the City's request for such deposit. Any unexpended amount of the deposit shall be released and remitted to Developer upon the termination of its maintenance 0 bligations as set forth in this Agreement 4 5-9 and in accordance with the terms asset forth in Condition No. 122. 3.2 Developer's Costs and Expenses. It is also expressly agreed and understood by the parties hereto that in no case will the City of ChuIa Vista, or :pty department, board or officer thereof, be liable for any portion of the costs and expenses of the work aforesaid, nor shall the City or the City's officer, sureties or bondsmen, be liable for the payment of any sum or sums for said work or any materials furnished therefor. 4. Compliance with Standards. In partial satisfaction of Condition No. 81, Developer agrees to the following: a. to remain in compliance with Condition No. 81; the requirements of the Storm Water Management Standards Manual including revision of approved grading and or improvement plans as necessary; b. to not protest the formation of a facilities benefit district or any other funding mechanism approved by the City to [fiance the operation, maintenance, inspection, and monitoring of NPDES facilities. This agreement to not protest shall not be deemed a waiver of the right to challenge the amount of any assessment, which may be imposed due to the addition of these improvements and shall not interfere with the right of any person to vote in a secret ballot election c. that development of the subdivision shall comply with all applicable regulations established by the United States Environmental Protection Agency (USEP A) as set forth in the National Pollutant Discharge Elimination System (NPDES) permit requirements for urban runoff and storm water discharge and any regulations adopted by the City of Chula Vista pursuant to the NPDES regulations or requirements; -.. d. to file a Notice of Intent with the State Water Resources Control Board to obtain coverage under the NPDES General Permit for Storm Water Discharges Associated with Construction Activity and shall implement a Storm Water Pollution Prevention Plan (SWPPP) concurrent with the commencement of grading activities; e. that the SWPPP shall include both construction and post construction pollution prevention and pollution control measures and shall identify funding mechanisms for post construction control measures; f. to comply with all the provisions of the NPDES and the Clean Water Program during and after all phases of the development process, including but not limited to: mass grading, rough grading, construction of street and landscaping improvements, and construction of dwelling units; 5 5-10 g. to design the Project's sto= drains and other drainage facilities to include Best Management Practices to minimize non-point source pollution, satisfactory to the City Engineer; I h. to comply with all relevant City regulations and policies including, but not limited to, incorporation into the design and implementation of the Project temporary and permanent structural Best Management Practices and non-structural mitigation measures that would reduce pollution of storm water runoff to the maximum extent practicable. S. Mitigation Monitoring and Reporting Program. In partial satisfaction of Condition No. 11 of the Resolution, Developer agrees to implement all environmental impact mitigation measures identified in the Final EIR, the candidate CEQA Findings and the Mitigation Monitoring and Reporting Program for this Proj ect including, but not limited to, those measures as more particularly set forth in Exhibit C. 6. Municipal Code Requirements. Developer understands and agrees that Developer shall be subj ect to all the provisions of the ordinances, standards, and policies of the City of Chula Vista (including Section 14.20.310 of the Municipal Code), the laws of the state of California, and federal law as applicable to said work as all may be amended from time to time. 7. Future Approvals. Developer acknowledges and agrees that the performance of Developer's obligations hereunder is required for the health and safety of the residents of the City of Chula Vista. Therefore, the Developer agrees that the City shall have the absolute and unfettered right to withhold the issuance of any grant of approval for the Property, if the Developer is determined by the City not to be in compliance with the terms of this Agreement. If Developer is determined by the City not to be in compliance with any term of this Agreement, the City shall notify Developer of Developer' s noncompliance and provide _. the Developer with 30 days to cure said noncompliance. The Developer shall not be in non- compliance if, upon notification of non-compliance, Developer starts immediately to work toward cure of said non compliance and diligently pursues, as determined by the City Engineer, a course of action to achieve a cure within a reasonable time frame. 8. Agreement Binding upon Successors. This Agreement shall be binding upon and inure to the benefit of the successors, assigns and interests of the parties as to any or all of the Property as described on Exhibit "A" until released by the mutual consent of the parties. 9. Agreement Running with the Land. The burden of the covenants contained in this Agreement ("Burden") is for the benefit of the Property and the City, its successors and assigns and any successor in interest thereto. City is deemed the beneficiary of such covenants for and in its own right and for the purposes of protecting the interest of the 6 5-11 community and other parties public or private, in whose favor and for whose benefit of such covenants running with the land have been provided without regard to whether City has been, remained or are owners of any particular land or interest therein. If such covenants are breached, the City shall have the right to exercise all rights and remedies and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of s~ch breach to which it or any other beneficiaries of this agreement and the covenants may be entitled. 10. Indemnification. Developer further understands and agrees that City, as indemnitee, or any office or employee thereof, shall not be liable for any injury to person or property occasioned by reason of the acts or omissions of Developer, its agents or employees, related to the construction of the Drainage Improvements and NPDES Facilities and Developer's Maintenance activities. Developer further agrees to defend, indemnify and hold the City, its officers and employees, harmless from any and all claims, demands, causes of action, liability or loss of any sort, because of or arising out of acts or omissions of Developer, its agents or employees, related to the construction of the Drainage Improvements andNPDES Facilities and Developer's Maintenance activities or from non-compliance with the requirements of the NPDES regulations. The approved improvement securities referred to above shall not cover the provisions of this paragraph. Such indemnification and agreement to hold harmless shall extend to damages to adjacent or downstream properties or the taking of property from owners of such adjacent or downstream properties as a result of Developer' s construction and Maintenance activities as provided herein. It shall also extend to damages resulting from diversion of waters, change in the volume of flow, modification of the velocity of the water, erosion or siltation, or modification of the point of discharge as the result of the construction of the Drainage Improvements and NPDES Facilities and maintenance and/or siltation removal actiŸities. The approval of plans for the Drainage Improvements NPDES Facilities and any related improvements shall not constitute the assumption by City of any responsibility for such damage or taking, nor shall City, by said approval, be an insurer or surety for the construction of the Drainage Improvements and NPDES Facilities and any related improvements. The provisions of this Agreement shall become effective upon the -,' execution of this Agreement and shall remain in full force and effect regardless of the City's approval of the Drainage Improvements and NPDES Facilities. 11. Miscellaneous Provisions. 11.1 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 subj ect matter hereof and any and all other prior or contemporaneous oral or written agreements are hereby superseded. This Agreement may be amended, but only pursuant to a written amendment properly authorized and executed by both parties hereto, 11.2 . Compliance with Laws. In the performance of its obligations under this agreement Developer shall comply with any and all applicable federal, state and local laws, 7 5-12 regulations, policies, permits and approvals. 11.3 Recitals and Exhibits. All Recitals and attached Exhibits referred to herein are hereby incorporated herein by this reference. ) 11.4 Term. This agreement shall remain in effect for so long as either party has executory obligations hereunder. 11.5 Recording. The parties hereto shall cause this Agreement to be recorded in the Official Records of the County of San Diego. 11.6 Assignment. The obligations of the Developer under this Agreement shall not be assigned in whole or in part, without the express written consent of the City. 11.7 Authoritv of Signatories. 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 and/or other actions have been taken so as to enable it to enter into this agreement. 11.8 Termination. Upon the termination of this Agreement pursuant to applicable provisions hereof, at the request of Developer or any successor in interest who owns any portion of the Proj ect encumbered by this Agreement, the City will execute an instrument in recordable form prepared by Developer in a form acceptable to the City Attorney which evidences the termination of this Agreement and confirms the release of the Project from the encumbrance of this Agreement. 11.9 Attornev's Fees. If either party commences litigation for breach of this Agreement or the judicial interpretation, reformation, enforcement or rescission hereof, the prevailing party will 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. 11.10 Preparation of Agreement. No inference, assumption or presumption shall be drawn from the fact that a party or his attorney prepared and/or drafted this Agreement. It shall be conclusively presumed that both parties participated equally in the preparation and/or drafting this Agreement. 11.11 Notices. Unless otherwise provided in this Agreement or by law, any and all notices required or permitted by this Agreement or by law to be served on or delivered to either party shall be in writing and shall be deemed duly served, delivered, and received when personally delivered to the party to whom it is directed, or in lieu thereof, when three (3) business days have elapsed following deposit in the U.S. mail, certified or registered mail, return receipt requested, fIrst-class postage prepaid, addressed to the address indicated in this Agreement. A party may change such address for the purpose of this paragraph by giving 8 5-13 written notice of such change to the other party. CITY Of CHULA VISTA 276 Fourth Avenue Chula Vista, CA. 91910 ) Attn: City Engineer DEVELOPER: McMillin Otay Ranch LLC 2727 Hoover Avenue National City, CA 91950 Attn: frank Zaidle, Vice President [NEXT PAGE IS PAGE ONE OF TWO SIGNATURE PAGES] -" 9 5-14 PAGE ONE OF TWO SIGNATURE PAGES TO THE DRAINAGE MAINTENANCE AND INDEMNIFICATION AGREEMENT (McMillin Otay Ranch Village 7 Grading) I IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first hereinabove set forth. Dated: ,2004 CITY OF CHULA VISTA by: Stephen C. Padilla Mayor Attest: Susan Bigelow, City Clerk Approved as to form: Ann Moore, City Attorney -" Dated: (NEXT PAGE IS PAGE 2 OF TWO SIGNATURE PAGES) 10 5-15 PAGE TWO OF TWO SIGNATURE PAGES TO THE DRAINAGE MAINTENANCE AND INDEMNIFICATION AGREEMENT (McMillin Otay Ranch Village 7 Grading) I McMILLIN OTA Y RANCH, LLC a Delaware limited liability company By: McMillin Companies, LLC a Delaware limited liability company Its: Manager .M.. By: ~~/dn?J~ -Ù Its: ..nvî' By: (Attach Notary Certificate) -,' 11 5-16 LIST OF EXIDBITS TO THE DRAINAGE MAINTENANCE AND INDEMNIFICATION AGREEMENT (McMillin Otay Ranch Village 7 Grading) ) Exhibit A Legal Description Exhibit A-I Property Plat Exhibit B Condition # 60, 81 and 122 of the Tentative Map Exhibit C Mitigation Monitoring and Reporting Program - measures prerequisite to issuance of a grading permit -" 12 5-17 DRAINAGE MAINTENANCE AND INDEMNIFICATION AGREEMENT (McMillin Otay Ranch Village 7 Grading) EXIllBIT A (MCMILLIN OTAY RANCH VILLAGE 7 - LEGAL DESCRIPTION) A PORTION OF LOT 10 OF CITY OF CHULA VISTA TRACT NO. 02-03 MCMILLIN OT A Y RANCH VILLAGE 6 "A" MAP IN THE CITY OF CHULA VISTA, COUNTY OF SAN DIEGO, StATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 14432, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, AUGUST 30, 2002. EXCEPTING THEREFROM THE LAND DESCRIBED IN THAT CERTAIN IRREVOCABLE OFFER OF DEDICATION OF FEE INTEREST RECORDED MAY 22, 2003 AS INSTRUMENT NO. 2003-0604604 AND ACCEPTED BY THAT CERTAIN ACCEPTANCE OFlRREVOCABLE OFFER OF DEDICATION OF FEE INTEREST RECORDED MAY 22, 2003 AS INSTRUMENT NO. 2003- 604605 AND CONVEYED TO THE STATE OF CALIFORNIA BY GRANT DEED RECORDED MAY 22, 2003 AS INSTRUMENT NO. 2003-0604607 ALL OF THE OFFICIAL RECORDS OF SAN DIEGO COUNTY CALIFORNIA. 13 5-18 DRAlNAGE MAINTENANCE AND INDEMNIFICATION AGREEMENT (McMillin Otay Ranch Village 7 Grading) EXHIBIT A-I (MCMILLIN OTAY RANCH VILLAGE 7 - PROPERTY PLAT) 14 5-19 I ---- -=-;:: - - - - J /M!]) ~ - - 500' O· 500' . GRAPHIC SCALE: 1"=500' .---- ~11 ~ 8 " Ii ~ < u d ~ 1-------- ~ I I I I I I ,L \ , - ~ - EXHIBIT A-1 VILLAGE OF VI5T A VERDE 51 TE PLAN ~11 SANTA LUNA Si'i'E.€1" - ---- _ P&D CONSULTANTS, INC. . Uð4 RIO SAN OIECO ORL'Æ, sur1E 110 SAfI OIEco, CALIf'ORNIA UlOII TEl..£: (1111) 2t1-14~ FAA: 211-1471 .t4 175221 OCTOBER 7, 21J04 5-20 DRAINAGE MAINTENANCE AND INDEMNIFICATION AGREEMENT (McMillin Otay Ranch Village 7 Grading) I EXHIBIT B Conditions of Approval for Chula Vista Tract 05-07 McMillin Otay Ranch Village 7 Resolution No. Condition No. 60 The Applicant shall provide drainage improvements in accordance with the Otay Ranch Village Seven Village of Vista Verde Preliminary Drainage Study, dated May 24, 2004, or a subsequent Hydrology Study submitted to and approved by the City Engineer. The Applicant shall maintain all such drainage improvements until said improvements are formally accepted by the City or an applicable maintenance district, or other mechanism as approved by the City. Said maintenance shall ensure that drainage facilities will continue to operate as designed. Condition No. 81 Prior to the approval of the first map for the Proj ect, or issuance of the first grading permit for the Project, whichever occurs earlier, Applicant shall enter into an agreement with the City of Chula Vista, wherein the Applicant agrees to the following a. Comply with the requirements of the Storm Water Management Standards Manual including revision of approved grading and or improvement plans as necessary; b. Indemnify, and hold harmless the City, its elected and appointed officers and employees, from and against all fmes, costs, and expenses and damages arising out õf non-compliance with the requirements of the NPDES regulations; c. To not protest the formation of a facilities benefit district or any other funding mechanism approved by the City to fInance the operation, maintenance, inspection, and monitoring of NPDES facilities. This agreement to not protest shall not be deemed a waiver of the right to challenge the amount of any assessment, which may be imposed due to the addition of these improvements and shall not interfere with the right of any person to vote in a secret ballot election 15 5-21 Condition No. 122 Prior to issuance of any grading permit which includes permanent Landscaping and I Irrigation (L&I) improvements to be installed in an open space lot to be maintained by the Community Facility District (CFD), the developer shall place a cash deposit, or other funding mechanism acceptable to the City, in the City's sole discretion, with the City which will guarantee the maintenance of the L&I improvements until the City accepts said improvements. In the event the improvements are not maintained to City standards as determined by the City Engineer and the Director General Services, the deposit shall be used to perform the maintenance. The amount of the deposit shall be equivalent to the estimated cost of maintaining the open space lots to City standards for a period of six months, ("Minimum Deposit Amount"), as determined by the City Engineer. Any unused portion of said deposit may be incorporated into the CFD's Reserve Account, or returned to the Developer, according to the following: a. If, six months prior to the scheduled date of acceptance of Landscape and Irrigation improvements for maintenance by the CFD, the Reserve Account is less than the Minimum Deposit Amount, the difference between these two amounts shall be incorporated into the Reserve Account, or; b. If the Reserve Account is at or above the Minimum Deposit Amount, the unused portion of the deposit may be returned to the Developer in 6 equal monthly increments over the last six months of the maintenance period if the maintenance is being accomplished to the satisfaction of the Director of General Services. 16 5-22 DRAINAGE MAINTENANCE AND INDEMNIFICATION AGREEMENT (McMillin Otay Ranch Village 7 Grading) EXIITBIT C (Mitigation Monitoring and Reporting Program - measures prerequisite to issuance of a grading permit) I MM 4.4-1 (NOISE): Noise walls shall be secured to the satisfaction of the City Engineer and Environmental Review Coordinator for residential units located along Birch Road and La Media Road prior to receiving a grading permit, and constructed prior to occupancy of 1st unit. An acoustical study confIrming wall geometrics and conformance with the City's noise threshold is required prior to finalization of site and grading plans. Based on preliminary design and assumptions, the following wall height would be required to meet City standards: Birch Road: 7 feet MM 4.5-1 (AIR QUALITY): The following measures shall be specifIed as notes on the project grading plans, and shall be implemented as practical to minimize construction emissions: · Minimize simultaneous operation of multiple construction equipment units. · Use low pollutant-emitting construction equipment, as practical. · Use electrical construction equipment as practical. · Use catalytic reduction for gasoline-powered equipment. · Use injection timing retard for diesel-powered equipment. · Water the construction area at least twice daily to minimi7e fugitive dust. · Stabilize graded areas as quickly as possible to minimize fugitive dust. · Pave pe=anent roads as quickly as possible to minimize dust. · Use electricity from power poles instead of temporary generators during building as feasible. · Apply chemical stabilizer or pave the last 100 feet of internal travel path within a construction site prior to public road entry. · Install wheel washers adjacent to a paved apron prior to vehicle entry on public roads. · Remove any visible track -out into traveled public streets within 30 minutes of occurrence. · Wet wash the construction access point at the end of each workday if any vehicle travel on unpaved surfaces has occurred. · Provide sufficient perimeter erosion control to prevent washout of silty material onto public roads. · Cover haul trucks or maintain at least 12 inches of freeboard to reduce b10woff during hauling. · Suspend all soil disturbance and travel on unpaved surfaces if winds exceed 25 mph. MM 4.7-1 (HYDROLOGYIDRAlNAGEIWATER QUALITY): Prior to issuance of each grading permit, a detailed drainage system design study shall be prepared in accordance with the City of Chula Vista's standards and shall be approved by the City Engineer. MM 4.7-2 (HYDROLOGYIDRAlNAGEIWATER QUALITY): Prior to issuance of each grading permit, the project applicant shall submit an NOI and obtain an NPDES Permit for Construction 17 5-23 Activity from SWRCB. Adherence to all conditions of the General Permit for Construction Activity is required. Each applicant wanting to develop within the Village 7 SPA Plan project is required under the SWRCB General Construction Permit to develop a SWPPP describing BMPs to be used during and after construction to prevent the discharge of sediment and other pollutants in storm wat9' runoff from the project. The SWPPP shall also include a Storm Water Sampling and Analysis Strategy (SWSAS), pursuant to the SWRCB General Construction Permit requirements. MM 4.8-1 (GEOLOGY AND SOILS): Prior to the issuance of each grading permit, the applicant shall verify that the applicable recommendations of the geotechnical report titled Geotechnical Investigation McMillin Otay Ranch, Village 7, prepared by Geotechnics Incorporated, dated January 23,2004, for the eastern portion of the Village 7 SPA Plan project site have been incorporated into the project design and construction documents to the satisfaction of the City Engineer of the City of Chula Vista. MM 4.9-1 (CULTURAL RESOURCES): A qualified archaeological monitor shall be on-site during initial grading of the site. Ifhistoric archaeological material is encountered during grading, all grading in the vicinity as determined and defined by the archaeologist shall stop and its importance shall be evaluated, and suitable mitigation measures shall be developed and implemented, if necessary. Cultural material collected shall be permanently curated at an appropriate repository, such as the San Diego Archaeological Center. MM 4.10-1 (PALEONTOLOGY): Prior to issuance of any on-site (or off-site) grading permits, the applicant shall confirm to the City of Chula Vista that a qualified paleontologist has been retained to carry out the following mitigation program. The paleontologist shall attend pre grade meetings to consult with grading and excavation contractors. (A qualified paleontologist is defined as an individual with an MS or Ph.D. in paleontology or geology who is familiar with paleontological procedures and techniques.) MM 4.10-2 (PALEONTOLOGY): A paleontological monitor shall be on-site at all times during the original cutting of previously undisturbed sediments of highly sensitive geological formations (Otay Formation) to inspect cuts for contained fossils. The paleontological monitor shall work under tlïé direction of a qualified paleontologist. The monitor shall periodically (every several weeks) inspect original cuts in deposits with an unknown resources sensitivity. (A qualified paleontological monitoris defined as an individual who has experience in the collection and salvage offossil materials). MM 4.10-3 (PALEONTOLOGY): If fossils are discovered, the paleontologist (or paleontological monitor) shall recover them. In instances where recovery requires an extended salvage time, the paleontologist (or paleontological monitor), shall be allowed to temporarily direct, divert, or halt grading to allow recovery of fossil remains in a timely manner. Where deemed appropriate by the paleontologist (or paleontological monitor). A screen-washing operation for small fossil remains shall be set up. MM 4.10-4 (PALEONTOLOGY): Prepared fossils, along with copies of all pertinent field notes, photographs, and maps, shall be deposited (with the applicant's permission) in a scientific institution with paleontological collections such as the San Diego Natural History Museum. A final summary 18 5-24 report shall be completed which outlines the results of the mitigation program. This report shall include· discussion of the methods used, stratigraphy exposed, fossils collected, and significance or recovered fossils. I MM 4.11-2 (BIOLOGICAL RESOURCES): Focused surveys for burrowing owl shall be conducted no earlier than 1 month prior to grading. If occupied burrows are detected, a mitigation plan shall be prepared and approved by the Director of Building and Planning and Environmental Review Coordinator and relocation of the species shall be conducted to avoid impacts from grading. MM 4.11-2 (BIOLOGICAL RESOURCES): Prior to issuance of a grading permit that impacts jurisdictional waters or wetlands, the developer shall prepare a Wetlands Restoration Plan to the satisfaction of the Resource Agencies and Director of Planning and Building to mitigate for indirect and. permanent impacts to 0.14 acre of wetlands. The Plan shall include, but not be limited to, an implementation plan, maintenance and monitoring program, estimated completion time, and any relevant contingency measures. Jurisdictional waters or wetlands shall be delineated on all grading plans. MM 4.13-1 (PUBLIC HEALTH AND'SAFETY): Prior to grading, the applicant of Grading Contractor shall emoll in the Voluntary Assistance Program operated by the county of San Diego DEH and obtain from DEH a Letter of Concurrence stating that onsite burial of contaminated soils during grading will not result in a public health risk, to the satisfaction of the District Director of Planning and Construction, the Environmental Review Coordinator, and City Engineer. 19 5-25 COUNCIL AGENDA STATEMENT Item Meeting Date 10/19/04 ~ ITEM TITLE: Resolution 2004- approving Change Order No. 1 for the "David A. Werge1and Shark and Ray Experience Photovoltaic System, in the City of Chula Vista (GG-176A)" project and authorizing the Director of General Services to execute said change order on behalf of the City. SUBMITTED BY: Director of General Services City Manager ~ \jJO (4/5ths Vote: _ No x ) REVIEWED BY: November 18, 2003, City Council awarded by Resolution 2003-491 a contract with Independent Energy Solutions for the "David A. Wergeland Shark and Ray Experience Photovoltaic System, in the City ofChula Vista (GG-176A)" project. The work provided for a fully functional 7.1KW (STC) grid-connected Photovoltaic System to be installed at the recently renovated David A. Werge1and Shark and Ray Experience located at the City's Nature Center. The work included all labor, material, equipment, protection and restoration of existing site, design, documentation, coordination and supervision necessary for a complete and operating system in accordance with the contract documents. Due to a California Energy Commission (CEC) program rebate less than estimated and unanticipated increases in cost of material, staff is recommending, in accordance with Council Policy 574-01, increasing the contract by Change Order No.1 as necessary to complete the project. Per Resolution 2000-451, Change Order No. 1 exceeds the amount allowable to be approved by the Director. RECOMMENDATION: That Council approve Change Order No. 1 for the "David A. Wergeland Shark and Ray Experience Photo voltaic System, in the City of Chula Vista (GG- 176A)" project and authorize the Director of General Services to execute said change order on behalf of the City. BOARDS/COMMISSION: Not Applicable DISCUSSION: The California Energy Commission (CEC) program offers a rebate to Contractors who install PV systems under 10KW. The PV system installed at the David A. Wergeland Shark and Ray Experience is 7.1KW. The Contractor, Independent Energy Solutions, has taken advantage of this rebate program, as described in the contract documents, with approval from San Diego Gas & Electric (SDG&E). Energy generated from a solar power (such as a PV system) over a period of time is a substantial cost savings to the operation of the David A. Werge1and Shark and Ray Experience and all facilities of the Nature Center. At the time the contract was awarded the CEC rebate amount was estimated at $24,162.51. Since then, Independent Energy Solutions has submitted a rebate payment claim and the reimbursement from SDG&E is $2,500 less than 6-1 Page 2, Item ~ Meeting Date 10/19/04 estimated, which at an initial cost of $51,487.46, would still provide the City With a system valued at a higher cost than installation. Additionally, included in the scope of work to install the PV system is the need to provide for structural support. At the time of purchase there was an unanticipated increase in the cost of structural supports made from aluminum, in the amount of $2,500, varying from what was originally estimated for the project at that time. It is not uncommon for these types of items to vary slightly in cost, however, the industry as a whole has experienced an increase in the cost of aluminum as mentioned in an article of The Cincinnati Enquirer dated March 6, 2004; "The cost of key metals used in anything...is rising rapidly...Aluminum is up 25% since the end of September (2003)". At this time, staff is recommending that Council approve Change Order No. 1 in the amount of $5,000 to cover the difference in the CEC rebate and unanticipated increase in the cost of structural supports necessary to complete the project. The original contract amount awarded to Independent Energy Solutions was $27,324.95. Approval of tonight's resolution would approve Change Order No.1, increasing their contract by $5,000 for a total revised contract of $32,324.95 and authorize the Director of General Services to execute said change order on behalf of the City. FISCAL IMPACT: There will be no additional appropriations necessary as the project has sufficient funds to cover the cost of the change order. Attachment(s): Change Order No.1 J:\General Services\GS Admini.tration\CouncU Agenda\S&R Pbotovoltaic System\SNR Change Order I.doc 6-2 t""" "" '" " ,,, "'..,,"'" .~ITY OF CV 141001 ~~/?- íiiiIJiiii <~~~ - cnv OF CHUlA VISTA Gener~1 Service. Department September 1, 2004 File: GG-176A CHANGE ORDER NO.1 CONTRACT: DAVID A. WERGELAND SHARK AND RAY EXPERIENCE - PHOTOVOLTAIC SYSTEM IN THE CITY OF CHULA VISTA, CA CONTRACTOR: INDEPENDENT ENERGY SOLUTIONS 1273 LINDA VISTA DRIVE SAN MARCOS, CA 92069 RESOLUTION NO: NA The following changes shall be made to the above referenced contract between the CITY OF CHULA VISTA and (Contractor): ITEM 1 2 DESCRIPTION Increase in Structural Support Cost Change in Rebate Amount TOTAL COST $2,500.00 $2,500.00 $5,000.00 Number of Additional working days: No. (0) The above prices include all costs for furnishing all tools, labor, materials, equipment, incidental costs and fees for performing the work in this contract change. No additional time or compensation will be due. Original Contract Price: Previous Ctlange Orders: This Change Order: Revised Contract Price: $ 27,324.95 $ 5,000.00 $ 32,324.95 It Is agreed by the undersigned that this work shall be performed and materials furnished in accordance with the original contract, Green Book specifications and applicable standard drawings. ~-=# ~ ' .;--- ~_~-A~ ORDERED AND APPROVED BY C PTED BY MATT LITTLE AUTHORIZED SIGNER BPC ana r INDEPENDENT ENERGY SOLUTIONS EWED BY G DON DAY Sr. Building Project Supervisor General Service. Department 1800 Maxwell Road· MS B-300 (hula Vista, CA 91911 Phone (619) 397-6220 Fax (619) 397-6250 APPROVED BY JACK GRIFFIN DIRECTOR 1 §"~ PRIDE "T WORK 6-3 www.chulavistaca.gov ,. Pm.1.COI'I~lIml:t' ~y..11:d r~J.l1:1 RESOLUTION NO. 2004- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING CHANGE ORDER NO. I IN THE AMOUNT OF $5,000 FOR THE "DAVID A. WERGELAND SHARK AND RAY EXPERIENCE PHOTOVOLTAIC SYSTEM, IN THE CITY OF CHULA VISTA (GG-176A)" PROJECT AND AUTHORIZING THE DIRECTOR OF GENERAL SERVICES TO EXECUTE SAID CHANGE ORDER ON BE BEHALF OF THE CITY WHEREAS, on November 18, 2003, the City Council approved Resolution No. 2003- 491 awarding a contract in the amount of $27,324.95 to Independent Energy Solutions, Inc. for the "David A. Wergeland Shark and Ray Experience Photovoltaic System, in the City of Chu1a Vista (GG-176A)" Project; and WHEREAS, according to City Council Policy No. 574-01, the proposed Change Order exceeds the cumulative contract change order aggregate amount allowable to be approved by the Director of General Services; and WHEREAS, Change Order No.1 in the amount of $5,000 is meant to pay for the reduced rebate offered by the California Energy Commission and an unanticipated increase in the cost of structural supports needed to complete the project. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve the Change Order No.1 for the "David A. Wergeland Shark and Ray Experience Photovoitaic System, in the City of Chula Vista (GG-176A)" Project in the amount of $5,000 and authorizes the Director of General Services to execute said Change Order on behalf of the City. Presented by Approved as to form by Do- 7. H-c- eneral Services Ann Moore City Attorney J:\attorney\reso\finance\ change order No.1 - nature center photovoltaic 6-4 COUNCIL AGENDA STATEMENT Item No.: '1 Meeting Date: 10/19/04 ITEM TITLE: An Ordinance of The City Council of the City of Chu1a Vista Adding Chapter 15.58 to the Chula Vista Municipal Code Relating to Placards Used to Denote the Condition of Structures and the Ability to Safely Occupy or Use those Structures after a Disaster. SUBMITTED BY: Director of Planning and Building ~ . 6'l? ~ REVIEWED BY: City Manager f;'ìJfY (4/5thsVote: Yes_No.]L) Immediately after the 1989 Loma Prieta earthquake and subsequent earthquakes, qualified safety assessment personnel posted placards on structures denoting the condition of the structure relative to continued occupancy. Through quickly evaluating structures for continued occupancy, we can reduce the demands on shelters and reduce shelter needs by keeping fewer people homeless. Within the State of California, all jurisdictions use the Standardized Emergency Management System (SEMS) to respond to any type of emergency or disaster. Post- disaster safety assessment and posting of placards is one of the essential functions of SEMS. Adopting the placards by ordinance makes them more official and easily enforceable and also prevents their unauthorized removal or altering. RECOMMENDATION: That the City Council adopt the ordinance adding Chapter 15.58 to Title 15 of the Chula Vista Municipal Code relating to placards used to denote conditions relating to continued occupancy of buildings after a disaster. BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: In 1987, the California Governor's Office of Emergency Services (OES), the Statewide Health Planning and Development (OSHPD) and the Federal Emergency Management Agency (FEMA) jointly contracted with Applied Technology Council CATC) for the purpose of standardizing the procedures for post earthquake safety assessment of bUildings and structures. The outcome was a publication titled PROCEDURES FOR POSTEARTHQUAKE SAFETY EVALUATION OF BUILDINGS also known as ATC-20. The procedures outlined in ATC-20 are an essential component of the statewide Standardized Emergency Management System (SEMS) used by jurisdictions, including Chu1a Vista, to respond to any type of emergency or disaster. The ATC- 20 procedures include posting placards that clearly identifY the conditions of buildings and structures for owners, occupants and the general public. The placards are intended to identify unsafe buildings, and at the same time, identify buildings that can be reoccupied, keeping fewer people homeless. Placards were fIrst used after the Loma Prieta earthquake in 1989 and have 7-1 Page 2, Item No.: 7 Meeting Date: 10/19/04 been successfully used in subsequent earthquakes. Even though the placards were originally intended to be used after an earthquake, they can also be used after other types of disasters. All of our Building Plan Check and Inspection staff, and both the Building Official and the Deputy Building Official have attended the required training and are State certified Disaster Service Workers. Adopting the placards by ordinance makes them more official and easily enforceable and also prevents their unauthorized removal or altering. The three placards are summarized as follows: 1) INSPECTED - LAWFUL OCCUPANCY PERMITTED (green). This placard is posted on each building or structure where no apparent structural hazard has been found. Attachment 1 2) RESTRICTED USE (yellow). This placard is posted on each building or structure that has been damaged where the damage has resulted in some form of restrictions to the continued occupancy. This placard can be used when portions of the structure can be occupied or when it is acceptable to enter to remove possessions. 3) UNSAFE - DO NOT ENTER OR OCCUPY (red). This placard is posted on any building or structure that has been damaged such that continued occupancy poses a threat to life safety and must not be entered or occupied unless authorized by the Building Official or hislher authorized representative. FISCAL IMPACT: The fiscal impact of this action is the cost of mass printing the placards, approximately $900. The cost can be absorbed into the existing approved budget for the Department. Attachments: 1 Placard - "INSPECTED" 2 Placard - "RESTRICTED USE" 3. Placard - "UNSAFE" H:\BLD_HSG\Adoption of Placards \Safety Assessment Placards - Staff Report.doc 7-2 ~ - ~ >. co >. .- ro <..> CJ ~ E c: .- Q) :::: Q c: e> 0 0 Q) ~ :¡:; E C) <..> Q) c: Q) ~ a. L- .- en Q) "C ~ c: "0 - .- W c: :J ~ Q) :J m <..>- ~ C:.::.:: "0 Q) .- en Q) ~ en .- ..... .c: L- <..> - I- ~"O Q) <..> c: a. >- o ro en >. .Q ~ ..c:Q) .!: ro <..> "C ~OJ en ..... c: en Q)- ~ Q) ro ro >~N Q) "§g CJ ~~ s:>. OJ ~ >..e ~«t-- ~ .."0 ..... :J..c:N 0 :.:en ;;c: U c: Q) ·Ü c: ..c:tl.O L- .2 en ro 0 ü:J~ 0 :J 0 Z i:ri Q) .. ro LL.E _00) - <e; W ::I Q) OIJ..~ <..> ..... E en "0 Q) _CJ -< ro CIS L- z.~d> ug .- c: a. .- Q) 0 i= ..c:o .-....... 'T""" en ë(/) ~ -.- 1-<..> ÜN~ c: ~ :J Q) a. 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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ADDING CHAPTER 15.58 TO THE CHULA VISTA MUNICIPAL CODE RELATING TO PLACARDS USED TO DENOTE THE CONDITION OF STRUCTURES AND THE ABILITY TO SAFELY OCCUPY OR USE THOSE STRUCTURES AFTER A DISASTER WHEREAS, In 1987, the California Governor's Office of Emergency Services, the Statewide Health Planning and Development and the Federal Emergency Management Agency jointly contracted with Applied Technology Council (A TC) for the purpose of standardizing the procedures for post earthquake safety assessment of buildings and structures; and WHEREAS, the outcome was a publication titled "Procedures for Post-Earthquake Safety Evaluation of Buildings" also known as ATC-20; and WHEREAS, the procedures outlined in ATC-20 are an essential component of the statewide Standardized Emergency Management System (SEMS) used by jurisdictions, including Chula Vista, to respond to any type of emergency or disaster; and WHEREAS, the ATC-20 procedures include posting placards that clearly identify the conditions of buildings and structures for owners, occupants and the general public; and WHEREAS, the placards are intended to identify unsafe buildings or structures, and at the same time, identify buildings or structures that can be reoccupied or used, keeping fewer people homeless. NOW, THEREFORE, the City Council of the City ofChula Vista does hereby ordain: SECTION I. That Chapter 15.58 of the Chula Vista Municipal Code is hereby added to read as follows: CHAPTER 15.58 SAFETY ASSESSMENT PLACARDS Sections: 15.58.010 15.58.020 15.58.030 15.58.040 15.58.050 Intent Application of Provisions Definitions Placards to be used Violation - Penalty 7-6 Safety Assessment Placards Ordinance No. Page 2 of3 15.58.01 0 Intent This chapter establishes standard placards to be used to indicate the condition of a structure for continued occupancy or use after the occurrence of a disaster. The chapter further authorizes the Building Official and his or her authorized representatives to post the appropriate placard at each entry point to a building or structure upon completion of a safety assessment. 15.58.020 Application of Provisions The provisions of this chapter are applicable to all buildings and structures of all occupancies or use regulated by the City of Chula Vista. 15.58.030 Definitions "Disaster" shall mean any natural or human-created occurrence which results in a disaster declaration by a governmental entity or person authorized to issue such a declaration, including but not limited to, the city manager, city council, the governor of the State of California and the President of the United States. "Disaster" shall include wind storms, earthquakes and after shocks, fires, floods, terrorist attacks, hazardous materials incidents and other occurrences resulting in a disaster declaration. "Safety assessment" shall mean a visual, non-destructive examination of a building or structure for the purpose of determining the condition for continued occupancy. 15.58.040 Placards A. Placard descriptions. The following are descriptions ofthe official City of Chu1a Vista placards to be used to designate the condition for continued occupancy of buildings or structures. 1. INSPECTED - Lawful Occupancy Permitted. Such a placard is to be posted on any building or structure wherein no apparent structural hazard has been found. This placard is not intended to mean that there is no damage to the building or structure 2. RESTRICTED USE. Such a placard is to be posted on each building or structure that has been damaged wherein the damage has resulted in the need for some form of restriction to its continued occupancy. The individual who posts this placard should note in general terms the type of damage encountered and will clearly and concisely note the restrictions on continued occupancy. 3. UNSAFE - Do Not Enter or Occupy. Such a placard is to be posted on each building or structure that has been damaged such that continued occupancy poses a threat to life safety. Buildings or structures posted with this placard shall not be entered under any circumstance except as authorized in writing by the Building Official, or his or her authorized representative. Safety assessment teams shall be authorized to enter these buildings at any time. This placard is not to be used or 7-7 Safety Assessment Placards Ordinance No. Page 3 00 considered as a demolition order. The individual who posts this placard will note in general terms the type of damage encountered. B. No liability created. The inspection and posting of a building as allowing occupancy or restricted occupancy does not guarantee its safety. The city shall not be held liable for any injuries, damage or death resulting from a building or structure which fails or partially fails after having been inspected and posted to allow occupancy. C. Other placards. From time to time the three placards listed above may need to be modified or new ones developed. The City Manager and Building Official are hereby authorized to modify those placards as well as develop new placards with a different focus or purpose. All new placards and changes to existing placards shall be consistent with the purpose and intent of this chapter. D. Other placard contents. The text "CVMC Chapter 15.58", the city logo, city name, city address and city phone number shall be permanently affixed to each placard. E. Illegal to occupy. Once a placard has been attached to a building or structure, it shall be unlawful to occupy or use said building or structure in a way which contravenes the order contained in the placard. F. Illegal to remove, cover or alter placard. Once posted, a placard shall not to be removed, altered or covered until done so by an authorized representative of the Building Official. It shall be unlawful for any person, firm or corporation to alter, remove, cover or deface a placard unless authorized pursuant to this section. 15.58.050 Violation - Penalty Any person who violates any provision of this chapter is guilty of a misdemeanor and is punishable by a fine not exceeding $1,000 or by imprisonment for a period of not exceeding six months, or by both. Each such person shall be guilty of a separate offense for each and every day a violation of this chapter is committed, continued, or permitted by any such person. SECTION II. This Ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Presented by Approved as to form by ::L>o.- -,. Ha.- Jim Sandoval Director of Planning and Building Ann Moore City Attorney 7-8 COUNCIL AGENDA STATEMENT Item: g Meeting Date: 10/19/04 ITEM TITLE: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A FIVE-YEAR LEASE BETWEEN THE CITY OF CHULA VISTA AND INVESTCAL REALTY CORPORATION FOR OFFICE SPACE AT 900 LANE AVENUE, APPROPRIATING $47,208 FROM THE AVAILABLE BALANCE OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND, AND AUTHORIZING THE MAYOR TO EXECUTE SAID LEASE AGREEMENT SUBMITIED BY, Dire,,,,, ofP1mmio, "" B;ill~ REVIEWED BY: CityManager~¡V (4/5thsVote: Yes~No~ On December 31, 2004, the City's sublease with the Eastlake Company, LLC (East1ake) for the satellite office in the Eastlake Business Center will expire. Eastlake is in the process of downsizing and decided not to extend its master lease but instead to negotiate a new lease with the current property management company, Investcal Realty Corporation (Investcal), for a smaller space. This generated the need for the City to find another office space and negotiate a new lease agreement. Providing building inspection services from the East1ake location has been very beneficial to the developers, home builders and citizens.as the location is in such close proximity to the work load. This proximity significantly reduces the cost of inspection services by reducing travel times and also reduces travel time for builders and citizens. Staff is recommending extending the lease for 5 years with 2 2-year extension options given the anticipated location and level of planned building activity. RECOMMENDATION: That the City Council adopt the resolution approving a five-year lease with two two-year extension options, between the City of Chula Vista and Investcal Realty Corporation for office space at 900 Lane Avenue at a monthly lease rate of$10,780, appropriating $47,208 from the available balance of the Public Facilities Development Impact Fee Fund, and authorizing the Mayor to execute said lease agreement. BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: In December 1998, the City entered a one-year sublease agreement for 1,626 square feet of office space from Eastlake to house the Building Inspection section. In December 1999, the City amended the agreement to sublease an additional 1,693 adjacent square feet to house the Building Plan Review section and a permit center for processing minor building permits. The extended five-year sublease C:\WINDOWS\Desktop\Today\Eastem Office Lease eds.DOC 8-1 helped alleviate the Building Division space shortage at the Civic Center, located the Building Inspectors closer to the new housing subdivisions, and established a satellite office in eastern Chula Vista. Both Eastlake's master lease and the City's sublease will expire on December 31,2004. Eastlake is in the process of downsizing and decided not to extend its master lease and instead negotiated a new short-term lease with Investcal for a smaller space. Because of the suitability of the current location, the convenience experienced by our citizens and developers in having an office presence in eastern Chula Vista, the competitive lease rate, and the minimal relocation costs, staff negotiated a lease agreement with Investcal to lease another suite in the 900 Lane Avenue building. Since the vast majority of inspection workload is in close proximity to the leased space, the cost per inspection is significantly less. Furthermore, the majority of our inspection workload is in eastern Chula Vista. Locating the building inspectors in that area reduced travel time, which in turn allowed more time to inspect. Current Situation: The Planning and Building Department currently subleases three separate spaces with a total square footage of 3,319 in suite 200 of the 900 Lane A venue building with space for 29 staff. The current sublease rate is $1.48 per square foot, $4,912 per month. The space has one small conference room, but does not have a public counter area or a lunchroom. For the last six years, staff have been using Eastlake's large conference room for weekly training and large meetings, and have been using East1ake's lunchroom. Furthermore, most of the office furniture that we are currently using belongs to Eastlake. Attachment A shows our current spaces as areas A, B and C. Proposed Lease Agreement: We are proposing to lease a portion of an office space that Eastlake will be vacating. The term of the lease is five years with two additional two-year options. The proposed lease space is approximately 5,843 square feet and the proposed lease rate is $1.85 per square foot including common area expenses. The cost of electricity and custodial services are not included and will be paid by the City directly. The proposed lease rate is competitive when compared to market rates for other office spaces in the Eastlake Business Center (between $2.10 and $2.30 per square foot). The proposed space will consolidate staff into one area, will include both the large conference/training room and the lunch room, a larger and more formal public waiting area, a public counter area, a space for processing and preparing archived documents and additional storage space for plans and documents for current construction projects. With minor tenant improvements to be completed and paid for by Investcal, the new space layout will work well for our operations. Since our phone lines and computer network lines are currently available on site, relocation costs are minimized. Attachment B shows the proposed layout. The monthly lease payment will be $10,780, making the annual lease a total of$129,360. The lease requires a one-time security deposit of$10,780 which is available in the current PFDIF budget. Contract Services: Contract services will be engaged to relocate and reconfigure existing furniture into the new suite. This will also include relocating all employees and necessary office contents and equipment. Total cost for the move contractor is $7,544 and sufficient funds are available in the budget. Contract services will also be needed to relocate all phone and data lines from existing hubs in common areas in the building. Total estimated cost for the phone and data lines relocation and new equipment is C:\wmDOWS\Desktop\Today\Eastem Office Lease eds.DOC 8-2 $6,300 which is included in the current budget. In the prior sub-lease with East1ake, custodial services were included with the sub-lease payment. In the new leased space, the City will be responsible for providing custodial services. General Services Department performed a cost analysis comparing the cost of providing the service with existing staff versus against contracting and recommended that we contract the service. The ongoing monthly cost for contractual custodial services is estimated at $800. Furniture: As noted above, Eastlake owns most of the furniture currently used by our staff, and because of downsizing, they have no need for most of their furniture. We worked with East1ake on developing a list of furniture that we need for the proposed new space, most of which is currently in the new space. By purchasing some of the existing used office furniture from Eastlake, furnishing costs are kept to a minimum. Total cost for the furniture purchase is $4,500. No appropriations are needed as sufficient funds are in the budget. Utilities: In the prior sub-lease with East1ake, electrical utilities were included with the sub-lease payment. In the new leased space, the City will have its own electrical sub-panel, so this cost will be paid separately. Ongoing monthly electrical expenses are estimated at $1,200 per month. Schedule: The tenant improvement and the office move is scheduled to take place during December and completed the end of December, in time for the expiration of the old sublease. Staff would also like to take advantage of the year-end furlough to reduce staff disruption. FISCAL IMPACT: There is no fiscal impact to the General Fund. The one-time $18,344 cost to relocate staff and prepare the suite for occupation, and the $10,780 security deposit will be paid for from the existing FY05 Public Facilities Development Impact Fee budget. An appropriation of $47,208 from the available balance of the Public Facilities Development Impact Fee Fund is required to cover the monthly costs for lease payment, electrical utilities and custodial services, for the remainder of Fiscal Year 2005. The ongoing annual cost of $94,416 will be incorporated in future budgets. Attachments 1. Attachment A, Current Space Layout 2. Attachment B, Proposed Space Layout 3. Attachment C, Lease Agreement C:\WINDOWS\Desktop\Today\Eastem Office Lease eds.DOC 8-3 ATIACHMENT A CURRENT SUBLEASE , . ........ .. A :: 155 €i.F. ..6 :: 8S1 ô.F. 'C :: \6S:S6J=~ ,co.: .' .' ,'-,' ;.,...."........ .,c'.'::....:::" '." 5GUARE FooT AC1E CALClJ1.ATONe ~ WI'$ " ,., . œ h t . 8-4 ATTACHMENT B 2-: "BUt L.PI..., t~~ 16 <I;.: ,9<lj,~ ~~..... œ¡"I". 1'æ\I- ~ Þ .?tAA<;i PROPOSED LEASE SPACE 8-5 RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A FIVE-YEAR LEASE BETWEEN THE CITY OF CHULA VISTA AND INVESTCAL REALTY CORPORATION FOR OFFICE SPACE AT 900 LANE AVENUE, APPROPRIATING $47,208 FROM THE AVAILABLE BALANCE OF THE PUBLIC FACILITIES DEVELOPMENT IMPACT FEE FUND, AND AUTHORIZING THE MAYOR TO EXECUTE SAID LEASE AGREEMENT WHEREAS, in December 1998, the City entered a sublease agreement with Eastlake Company, LLC, the tenant, for office space at 900 Lane Avenue to accommodate the Building Inspection section of the Planning & Building Department; and WHEREAS, in December 1999, Council approved Resolution 19717 to amend and restate said sublease and add space for the Plan Review section of the Planning & Building Department and add space for a satellite permit processing center; and WHEREAS, the current sublease expires December 31, 2004 and East1ake Company, LLC will not renew the sublease since they are down-sizing and seek a shorter lease for a smaller space; and WHEREAS, staff conducted a market search in the area for comparable lease properties and the recommended lease provides both the lowest cost per square foot and the least relocation expense for the City; and WHEREAS, as the construction of planned communities and commercial properties in eastern Chu1a Vista continues, the need for a continued satellite permit processing office in eastern Chula Vista is expected to grow. NOW, THEREFORE BE IT RESOLVED THAT the City Council of the City of Chula Vista does hereby approve the lease with Investical Realty Corporation for office space at 900 Lane A venue and authorizes the Mayor to execute said agreement. BE IT FURTHER RESOLVED that the City Council of the City of Chula Vista does hereby appropriate $47,208 from the available balance of the Public Facilities Development Impact Fee Fund for rental payments, as well as the cost of utilities, and custodial services. Presented by Approved as to form J. Sandoval A ting Planning and Building Director .' dJJL .... / . v/¡~ P /~~ Moore . (.../ City Attorney --- 8-6 THE ATTACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL Ann Moore City Attorney Dated: 10/13/04 LEASE WITH INVESTCAL REALTY CORPORATION (900 LANE AVENUE) 8-7 INVESTCAL REAL TV CORPORATION 2333 CAMINO DEL RIO SOUTH, SUITE 210 SAN DIEGO, CALIFORNIA 92108 (619) 683-9455 A"'"l'o.t~~..tT c.. STANDARD BUSINESS PROPERTY LEASE BETWEEN INVESTCAL REALTY CORPORATION as Landlord and CITY OF CHULA VISTA as Tenant EASTLAKE BUSINESS CENTER 900 LANE AVENUE, SUITE 100 CHULA VISTA. CA 91914 Property Address 1 INITIALS: 8-8 (lj3 , TABLE OF CONTENTS STANDARD BUSINESS PROPERTY LEASE Article Page Cover Page. ............. .......................... .............1 Table of Contents..... .......................... .__..........2 Definition of Variable Terms ............... .............3 1.1 Definitions ......... .......................... .............3 1.2 Additional Provisions ..........m...... .............3 2. Lease of the Premises ........................ .............4 2.1 Grant of Lease.. .......................... ....._.......4 2.2 Master Premises.......................... .............4 2.3 Common Area.. .......................... .............4 2.4 Acceptance of Premises................ ......4 3 Change in Commencement Date ....._ .............4 3.1 Delay in Delivery.......................... .............4 4. Rent ........... ............. .......................... .............4 4.1 Rent Payment... .......................... .............4 4.2 Minimum Monthly Rent ............... .............4 4.3' Minimum Monthly RentAdjustment..........5 4.4 Security Deposit .......................5 4.5' Late Charge...... .......................... .............5 5. Use ............. ............. .......................... .............6 5.1 Permitted Use... .......................... .............6 5.2 Prohibited Uses and Activities..... .............6 6 Common Area expenses.................... .............6 6.1 Payment of Tenanrs Share of Common Area Expenses............ .............6 6.2 Common Area E>cpenses.........._. .............6 6.3 Method of Payment..................... .............7 6.4 Contests............ .......................... ..........._.7 6.5 Taxes on Tenanrs Personal Property......7 7 Utilities ........ ............. .......................... .............7 7.1 Payment by Tenant..................... ..........._.7 8 Maintenance Repairs and Alterations... ...........8 8.1 landlord's Obligations................. ....._.......8 8.2 Inabiity to Perform....................... .............8 8.3 Tenants Obligations .................... .............8 8.4 Warranties ........ ........_................. .............8 8.5 Exterior Portions of the Premises 8 8.6 Service Co_cts ........................ .............8 8.7 Personal Property ofTenant....... ........_....8 8.8 Alterations......... ...._..................... .............9 8.9 Mechanic's Liens......................... .............9 9 Entry by Landlord ..... .......................... .............g 9.1 Landlord's Right of Entry... ...... ...9 10 Insurance.... ............. .......................... .__..........9 10.1 Liability Insurance........................ .............9 10.2Tenants Property......................... .............9 10.3Fire and Extended Coverage...... .............9 1 0.4 Form of Policies .......................... .............9 10.5Procedures and Remedies........ ..........10 10.6lnsurance of Other Tenants........ ......_..10 11 Indemnity.... ............. .......................... .............10 11.1 Waiver of Damages..................... .............10 11.2IndemniflCatian. .......................... .............10 12 Damage or Destruction....................... .............10 12.1 Whole or Partial Destruction ..... .............10 8-9 Article Page 13 Quiet Possession ..... ............. ............ .............10 13.1 Possession...... ............. ............ .............10 14 Default........ ............. ............. ............ ............. 11 14.1 Events of Oefault .......... ............ ............. 11 14.2 Landlord's Remedies Upon and Event of Default......... ............. ............ .............11 14.3 Landlord's Right to Cure............ .............12 14.4 Security No Bar............. ............ .............12 14.5 Period of Umltations..... ......_..... ............. 12 14.6 Remedies Cumulative.. .....n..... .............12 15 Condemnation.......... ............. ............ .............12 15.1 Definition ......... ............. ............ .............12 15.2 Total Taking.... ............. ............ .............12 15.3 Partial Taking.. ............. ............ .............13 16 Subordination........... ............. ............ .............13 16.1 Automatic Subordination ........... ............. 13 17 Holding Over ............ ............. ............ .............13 17.1 Consequences of Holding Over .............13 18 Assignment and Subletting.... ............ .............13 18.1 Landlord's Consent Required h. ............. 13 18_2 No Release of Tenant.. ............ .............13 19 Transfers and Refinancing.... ............ ,............14 19.1 Conveyance of Landlord's Interes!......... 14 19.2 Estoppel Certificate....... ............ .............14 20 Surrender... ............. ............. ............ .............14 20.1 Surrender of Lease Not Merger .............14 20.2 Redelivery of Premises to Lessor ........... 14 21 Signs........... ............. ............. ............ .............14 21.1 General........... ............. ............ .............14 21.2 Sign Criteria..... ............. ............ .............14 21.3 Approvai Required........ ............ .............14 22 Notices........ ............. ............. ............ .............15 22.1 Dalivery of Notices........ ............ .............15 23 Parking ....... ............. ............. ............ .............15 23.1 Uses of Parking Areas.. ............ ............. 15 23.2 Restrictions...... ............. ............ ............. 15 24 General Provisions... ............. ............ ...._........15 24.1 Integration ....... ............. ............ ............. 15 24.2 Time is of the Essence. ............ ............. 15 24.3 Singular and Plural Terms ........ ............. 15 24.4 Captions.......... ............. ............ ............. 15 24.5 Modifications... ............. ............ .............15 24.6 Governing Law ............. ............ ............. 15 24.7 EJchibits............ ............. ............ .............15 24.8 Light and þJr Easoman!............ ..........15 24.9 Successors and Assigns ........... ............. 15 24.10 No Partnarship ............. ............ ............. 16 24.11 Waivers .......... ............. ............ ............. 16 24.12 Saverabnity..... ............. ............ .............16 24.13 Corporate Authority ..... ............ ............. 16 24.14 Covenant Not to Record........... .............16 24.15 Amerìcans with Disabilities Act. ... ........16 24.16 Examination ofLaase.. ............ .............16 24.17 Amendments. ............. ............ ............. 16 24.18 Attornay's Fees............ ............ ..........16 ADDENDUM TO LEASE............................ 17 , 2 INITIALS: ~j STANDARD BUSINESS PROPERTY LEASE THIS STANDARD BUSINESS PROPERTY LEASE (this "Lease") is made and ","",uted in duplicate, this -ªBL day of _ AUGUST 20M..., between INVESTCAL REALTY CORPORATION (hereinafter relened 10 as "Landlord"] and CITY OF CHULA VISTA (hereinafter referred 10 as "Tenant"]. Tenant does business under the name CITY OF CHtJl.A VISTA If Tenant is an indMdual(s), insert the following: Tenanrs social security number(s) Tenanfsdrivefslicense number(s) . ~Tenantisacorporation, insert the following: Tenanfs corporate identification number In consideration of the mutual promises herein contained, landlord and Tenant agree as follows: ARTICLE 1 - Definition of Variable Terms; Additional Provisions 1.1 Definitions. For purposes of this lease the following tenns shall have the following meaning: 1.2 "Bundin9" - That certain bundin9 havin9 a common address of EASTlAKE BUSINESS CENTER 900 LANE AVE SUITE 100 CHULAVlSTA CA91914 1.1.2 gPremises"· That certain portion of the BuDding outlined on the floor plan attached hereto as Exhibit C, consisting of approximately 5843 square feet, located on the GROUND floor of the BuDding, and designated as Suite No..1®, 1.1.3 "Term" - A period of FIVE (5) YEARS beginning on the Commencement Date and ending on DECEMBER 31 2009. 1.1.4 "Commencement Date"· The date on which the Lease term shall commence, which shall be JANUARY --1.§L. 20~ provided, howeller, that W delivel)' of possession of the Premises is not made on the date specified in this Subsection, Landlord and Tenant shall execute a written acknowledgment of the date when landlord actually delivers possession of the Premises to Tenant and attach it to this Lease as Exhibit B, in which event the date specified in said 8ct1ibit B shall be deemed to be the Commencement Date. 1.1.5 "MinimumMonthly~enr-$ 8180.00 s 2 600.00 10.780.00 TOTAL FROM 1.1.9 BELOW TDT AL MONTHLY RENT 1.1.6 "Security Deposit" - $ 10 780 00 1.1.7 "Permitted Use(s)" - The use(s) to which Tenant is limited in occupying the Premises, which uses are OFFICE USE 1.1.8 "Tenants Share" - The approximate ratio of the area of the Premises to the area of the Master Premises (defined in Article 2 below). which ratio isa9reed for the purposes at this Lease 10 be 31 10 percent( 31.10 %). 1.1.9 "Estimated Common Area 8cpensesN - An estimate of Common Area 8rpenses (defined in Article 6 below), which estimate is provided by landlord to Tenant upon the execution of this Lease without warranty and for preliminary planning purposes only, as follows: Element of Common Estfmated Area Expenses Monthly Amount Taxes (See Section 6.2(a)) Maintenance of Master Premises (See Section 6.2(b) Insurance (See Section 1 0.3) REST ROOM TOTAL $ $ $ $ $ $ $ 1101.00 1254 00 15500 9000 2600.00 The foregoing is an estimate onty and shall in no way be deemed to be a limit on the charge to be made for Common Area Expenses which shall be ultimately determined from costs and expenses actually e»q:Ierienced, as more fully set forth In Article 6 of this Lease. Estimated Common Area 8cpenses are an element of the Rent and shall be paid monthly in addition to the Minimum Monthly Rent 1.1.10 "Landlord's address" - or such other address as to which Landlord gives notice as contemplated by Article 22 of this Lease. INVESTCAL REALTY CORPORATION 2333 CAMINO DEL RIO SOUTH. SUITE 210 SAN DIEGO CA 92108 1.1.11 "Tenanrs address" - or such other address as to which Tenant gives notice as contemplated by Article 22 oflhis Lease. CITY OF CHULA VISTA 276 FOURTH AVENUE CHULA VISTA CA 91910 1.2 Additional Provisions. The below listed provisions, additional articles, addenda and exhibits are appended to and/or made a part of this Lease: EXHIBIT A: GENERAL RULES AND REGULATIONS EXHIBIT B' LANE AVENUE SIGN CRITERIA EXHIBIT C: RULES FOR STORAGE AND HANDLING OF HAZARDOUS MATERIALS (619\ 683-9455 CONTACT: LOU EL-KHAZEN BUSINESS· (619\ 691-5272 , 8-10 , 'T"'t.T'T"""T"''T"'" ~ tu ARTICLE 2 - lease of the Premises 2.1 Grant of lease. landlord hereby leases the Premises to Tenant and Tenant hereby hires the Premises from landlord, pursuant to the provisions of this lease. 2.2 Master Premises. The Premises are a portion of the "Master Premises" which include the Building and certain Common Areas located inside and outside the Building. 2.3 Common Areas. The Premises include the nonexclusive right to use, jointiywith Landlord, othertenanfs of Landlord and agents, employees and invitees of landlord and such other tenants, certain Common Areas. The "Common Areas" include, without limitation, any of the following areas or systems which may now or hereafter exist within the Master Premises: parking and loading areas: access roads; ramps and stairways: fire sprinkler systems; time clock systems: common loading docks; landscaping: landscape sprinkler systems: exterior lighting; trash enclosure areas: driveways; entrances and exits: sidewalks; lavatories; and all other areas inside or outside the Building and intended for the common use of all tenants of the Building. The enumeration of such areas or systems does mean, and shall not be deemed to mean, that such areas or systems exist within the Master Premises or that Landlord will provide for such areas or systems. Tenanrs right to use the Common Areas shall terminate upon the termination of this lease. Landlord shall have the right from time to time to establish, modify and enforce reasonable rules and regulations with respect to the Common Areas and all improvements therein and thereon. landlord shall have the right to construct, maintain and operate the Common Areas and said improvements: to police the same: to close, or erect signs in, all or any portion of the Common Areas or such improvements to such extent as may, in the opinion of landlord's counsel, be legally sufficient to prevent a dedication thereof or the accrual of any rights to any person or the public therein. landlord will operate and maintain the Common Areas and such improvements in such manner as landlord, in landlord's sole discretion, shall determine to be prudent or necessary. Without limiting the scope of such discretion, landlord shall have the full right and authority to employ personnel necessary for the proper operation and maintenance of the Common Areas and such improvements. All Common Areas and other common facilities which Tenant may be permitted to use, are to be used and occupied under a revocable license, and if any such license be revoked, or if the amount of such areas be diminished, Landlord shall not be subject to any liability nor shall Tenant be entitled to any compensation or diminution or abatement or Rent, nor shall such revocation or diminution of such areas be deemed constructive or actual eviction. As more fully set forth in Articles 6, 8 and 23 below, Landlord shall operate, manage and maintain all the Common Areas and determine the Common Area Expenses for the maintenance and preservation of the Common Areas. landlord shall have, and hereby reserves, the right from time to time, to aiter, remove, relocate and otherwise deal with the Common Areas, or any part thereof, in such manner as landlord, in landlord's sole discretion, shall determine is for the benefit of the Master Premises. Landlord may revoke the Tenant's license to use the common areas only If the Tenant vIolates the rules and regulations applicabte to this area. 2 .4 Acceptance of Premises. Landlord warrants that as of the date of this Lease, the Premises are not in violation of any applicable federal, state, or local statues, ordInances, or regulations. ARTICLE 3 - Change in Commencement Date 3.1 Delay in Delivery. If landlord is unable to deliver possession of the Premises to Tenant on the date specified in Subsection 1.1.4 then la) landleFII shall net ha·.... any liability te Tenant for any sensoluential less er daRlage resulting the_Rl. nershall this lease be .....Id er"eidable, but this loase .hall remain '/and and sentinue in full fome and e"".... (a) rent shall not be payable until landlord does deliver possession of the Premises to Tenant and (b) the Term shall not in any way be extended and shall expire after the running of the Term unless sooner terminated pursuant to this lease,(c) Landlord agrees to defend, indemnify and hold the City harmless from and against any claims for damage arising out of Landlord's failure to deliver the premises on date specified in Section 1.1.4. ARTICLE 4 - Rent 4.1 Rent Payment The total amount of money to be paid by Tenant from time to time for the right to occupy the Premises shall hereinafter be referred to as the "Rent" Several payments required by this lease affect and are included in such total, and each such required payment is, and shall be deemed to be, rent under this Lease, whether such payment is specifically designated as "renr' or an element of the "Rent" Except as provIded elsewhere In this Lease, Tenant shall pay landlord all amounts due from Tenant to landlord hereunder as Rent in lawful money of the United States, unconditionally, without demand, deduction, qualification or set-off, at Landlord's address or at such other address as landlord may from time to time designate in writing. 4.2 Minimum Monthly Rent The Minimum Monthly Rent is an element of the Rent Until adjusted as set forth in Paragraph 4.3 below, Tenant shall pay the Minimum Mon!t]ly Rent to landlord in advance, in monthly installments commencing on the first day of the second full calendar month occurring after the Commencement Date, and thereafter on or before the first day of each successive calendar month during the term hereof. The Minimum Monthly Rent for the first full calendar month of the Term shall be paid to landlord COFIcurrentlywith the execution of this lease. Unless the Commencement Date is the first day of a calendar month, rent for the partial 8-11 4 INITIALS: &.-5> month which begins on the Commencement Date and ends on the last day of the calendar month in which the Commencement Date occurs, shall be prorated and Tenant shall pay the Rent for said partial month with the first regular installment of Minimum Monthly Rent due hereunder. 4.3 Minimum Monthly Rent Adjustment. For purposes of this Lease, the phrase "lease year" shall mean each 12-month period during the Term beginning on the Commencement Date, if the Commencement Date is the first day of a calendar month, but otherwise on the first day of the calendar month immediately next following the calendar month in which the Commencement Date falls, and ending on the last day of the twelfth calendar month.thereafter. For example, if the Commencement Date is August 15th of a given year, each lease year shall begin on September 1st and end on the fo/lowing August 31st The phrase "lease yea~' shall also mean any period of time that is not a twelve-month period that ends on the last day of the Term and begins on the day after the last day of the last twelve-month period of the Term that is a lease year. Thus, for example, If the Term is for 27 calendar months, the last three months of the Term would be deemed to be the third lease year of the Term even though it is only a three-month period. Prior to the end of each lease year, the Minimum Monthly Rent for the then next following lease year shall be increased as hereinafter provided. The increased Minimum Monthly Rent shall be determined by multiplying the Minimum Monthly Rent for the lease year in which such calculation is to be made, by a fraction, the denominator of which is the index figure for the last monthly period ending before the beginning of the lease year in which such calculation is to be made, published by the United States Department of Labor, Bureau of Labor Statistics, in the Revised Consumer Price Index for All Urban Consumers, for the index area that includes Los Angeies, California, all items, 1 967 base, and the numerator of which is the comparable index figure for the last monthly period (i) ending before the end of the lease year in which such calculation is to be made and (ii) for which such index is published. Such increased Minimum Monthly Rent shall be the Minimum Monthly Rent to be paid in accordance with the provisions of Section 4 .2 above for the lease year of the T,!rm next following the lease year in which such calculation is to be made. Should said Bureau of Labor Statistics discontinue the publication of such index, or publish such index less frequently, or aiter such index in some other manner, then Landlord shall adopt a substitute index or substitute procedure which reasonably reflects and monitors changes in consumer prices. Notwithstanding the foregoing provisions of this Section, the Minimum Monthly Rent shall not be reduced below the original Minimum Monthly rent set forth in Article 1 above, Landlord's failure, by reason of oversight mistake or otherwise, to calculate or collect any increased Minimum Monthly Re as aforesaid, shall not relieve Tenant of its obligation to (i) pay landlord, forthwith upon discovery of such oversight or mistake, an amount equal to the difference between Minil11Jm Monthly Rent actually paid and the increased Minimum Monthly Rent that should have been paid during the period that such mistake or oversight remained undiscovered, and (Ii) pay such increased minimum Monthly Rent after such mistake or oversight is discovered. 4.4 Security Deposit. Upon executing this Lease, Tenant shall deposit the Security Deposit with the Landlord. Landlord may claim of the Security Deposit only those amounts as are reasonably necessary to remedy Tenanfs defauit in the payment of Rent to repair damages to the Premises caused by the Tenant or to clean the Premises upon termination of this Lease. Landlord may use and commingle the Security Deposit with other funds of Landlord. If Tenant defaults in the payment of Rent damages the Premises or fails to clean the Premises upon termination of this Leas,e, Landlord may, but shall not be obligated to, apply all or any portion of the Security Deposit toward payment of Rent or for the repair or cleaning of the Premises as the case may be. Where the claim of the Landlord upon the Security Deposit is only for the defauit in payment of Rent, then any remaining portion of the Security Deposit shall be returned to Tenant no later than three \M!8ks after the Landlord regains possession of the Premises. Where the claim of the Landlord upon the Security Deposit includes amounts reasonably necessary to repair damages to the Premises caused by the Tenant or to clean the Premises, then any remaining portion of the Security Deposit shall be returned to the Tenant at such time as may be mutually agreed upon by Landlord and Tenant but in no event later than 30 days after the date Landlord regains possession of the Premises. On termination of Landlord's interest in the Premises, whether any sale, assignment or otherwise, Landlord or Landlord's agent shall, within a reasonable time, do one of the following acts, either of which shall relieve Landlord of further liability with respect to the Security Deposit to wit (a) transfer the portion of the Security Deposit remaining after any deduction made in accordance with the provisions of this Lease to the Landlord's successor in interest and thereafter notify Tenant by personal delivery or certified mail, of the transfer, of any claims made against the Security Deposit, and of the transfee's name and address, (b) return the portion of the Security Deposit remaining after any deduction made in accordance with this Lease to the Tenant If the notice to the Tenant contempiated by item (a) above is made by personal delivery, the Tenant shall acknowledge receipt of the notice and sign Tenanfs name on the Landlord's copy of such notice. Should all or any portion of the Security Deposit be applied by Landlord as hereinabove provided, then Tenant on written demand from Landlord, shall forthwith remit to Landlord a sufficient amount in cash to restore the Security Deposit to its original amount and Tenanfs failure to do so within ten days after such demand shall constitute a breach of this Lease. The assignment of Tenanfs interest in this Lease shall not entitie Tenant to a refund of the Security Deposit from Landlord, it being the intent of the parties that the economic benefit of the Security Deposit upon such assignment be a matter of negotiation between Tenant and Tenanfs assignee~ , 8-12 5 INITIALS: fM 4.5 Late Charges. Tenant hereby acknowledges that late payment by Tenant to Landlord of Rent and other sums due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed on Landlord by the terms of any mortgage or trust deed encumbering the Premises. Accordingly, in the event that Tenant shall fail to pay to Landlord within ten (10) days of the date when due any payment owing to Landlord pursuant to the terms of this Lease, Tenant shall pay to Landlord an additional sum equal to the greater of (a) ten dollars ($10.00), or (b) five percent (5'%) of the payment which is due, exclusive of such late charge. The parties agree that this late charge represents a fair and reasonable estimate of the costs that Landlord will incur by reason of late payment by Tenant Notwithstanding the foregoing, the obligation to pay such late charge does not and shall not be deemed to, alter or preclude Landlord's right and option, prior to actual receipt of any delinquent installment of Rent or other payment and, if due, such late charge, to exercise any right or remedy which Landlord may have under the terms of this Lease by reason of the default of Tenant and aller Landlord exercises such right or remedy the payment of any such sums or the making of any such additional deposit shall not, and shall not be deemed to, cure any prior default by Tenant or constitute damages or liquidated damages for such prior default Acceptanœ of the Late Charge by the Landlord shall operate as a waiver of the Landlord's right to tenninate the Lease and seek damages in accordance with ArtIcle 14 of the Lease. ARTICLE 5 - Use 5.1 Permitted Use. Throughout the term of this Lease, Tenant shall continuously occupy and use the Premises only for the Permitted Use(s). Tenant shall not use the Premises for any purpose other than the Permitted Use(s) without Landlord's prior written consent 5.2 Prohibited Uses and Activities. Throughout the Term: (a) Tenant shall not do or permit anything to be done in or about the Premises nor bring or keep anything therein which will in any way increase the existing rate of, er ethe""'Ì6e "",,ct, any fire or other insurance upon the Building or any of its contents, or cause a cancellation of any insurance policy covering the Building or any part thereof or any of its contents, nor shall Tenant sell or permit to be kept, used or sold in or about the Premises any articles or substances, inflammable or otherwise, which may be prohibited by a standard form policy of fire insurance; (b) Tenant shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Building or injure or annoy them or use or allow the Premises to be used for any unlawful er ebjectienable pWFJleee: (c) Tenant shall not cause, maintain or permit any nuisance in or about the Premises nor commit or suffer to be committed any waste in or upon the Premises; (d) Tenant shall not use the Premises or permit anything to be done in or about the Premises which will in any way conftict with any law, statute, ordinance or governmental rule or regulation or requirement of duly constituted public authorities now in force or which may herealler be enacted or promulgated, including, but not limited to the California Occupational Safety and Health Act and all laws and regulations regarding right of access for disabled persons; (e) Tenant shall at its sole cost and expense promptly comply with all laws, statutes, ordinances and governmental rules, regulations or requirements now in force or which may hereafter be in force and with the requirements of any board of fire underwriters or other similar body now or hereafter constituted relating to or affecting the condition, use or occupancy of the Premises, excluding structural changes not relating to or affecting the condition, use or occupancy of the Premises: the judgment of any court of competent jurisdiction or the admission by Tenant in any action against Tenant, whether Landlord be a party thereto or not that Tenant has violated any law, statute, ordinance or governmental rule, regulation or requirement, shall be conclusive of the fact as between Landlord and Tenant (I) Tenant shall not violate, and shall affirmatively comply with, all recorded covenants, conditions and restrictions which are appllcabie to the Premises; and (g) Tenant shall not permit its vehicles to interfere with the use of Common Areas. ARTICLE 6 - Common Area Expenses 6.1 Payment of Tenant's Share of Common Area Expenses. Tenant shall pay to Landlord, as an element of the Rent Tenanfs Share of Common Area Expenses during the Term, in monthly installments as described in Section 6.3 below. Landlord shall maintain accurate records of Common Area Expenses which Tenant may examine, during Landlord's normal business hours at Landlord's address, not more frequenlty than quarterly. Tenant's share of common area expenses is its pro-rata share of the square foot leased area in Eastlake Business Center and is catculated as 31.1 pen:ent (31.1%}. 6.2 Common Area Expenses. k; used herein the term "Common Area Expenses" shall mean the sum of the following items: (a) the amount of all Taxes plus (b) all other costs and expenses attributable to the ownership, operation, management and maintenance of the Master Premises (excluding depreciation on the Master Premises, all amounts paid on loans of Landlord and expenses capitalized for federal income tax purposes), including but not limited to costs and expenses incurred in connection with providing any of the following: utilities; supplies: insurance: license, permit and inspection fees: cost of services of independent contractors (including property management fees); cost of compensation Onduding employment taxes and fiinge benefits) of all persons who perform regular and recurring duties connected with day-to-day operation, management, maintenance and repair of the Master Premises, Its equipment fire sprinkler syStem, time clock system, if any, exterior walls and roof, and the adjacent walks, malls, landscaped areas, landscape sprinkler 8-13 6 INITIALS: @tb system, exterior lighting and trash enclosure areas, Including, without limitations, the cost of all janitorial, scavenger, gardening, securtty, parking, fumigation, rodent, insect or other pest control, operating engineer and elevator services and the cost of providing, painting, plumbing, electrical, carpentry, heating, ventilation, air conditioning, window washing, signing and advertising (but excluding persons performing services not uniformly available to, or performed for substantially all tenants of, the Building); and rental expenses for, and/or a reasonable allowance for depreciation of, equipment and other personal property used in the maintenance, operation and repair of the Master Premises. The enumeration of such expenses does not mean, and shall not be deemed to mean that Landlord shall provide all or any of the enumerated services unless it is necessary to do so in order to operate, manage and maintain the Common Areas in such manner as Landlord, in Landlord's sole discretion, shall determine to be prudent or necessary. As used herein the term ''Taxes" shall mean and include, without limitation: (a) all real property taxes, personal property taxes, general or special assessments and all other taxes, charges, levies and license permit fees of any kind or nature whatsoever, foreseen or unforeseen, general or special, which are levied or assessed with respect to all or any portion of the Master Premises and/or the improvements, fixtures, equipment and other property of Landlord therein or thereon; (b) any increase in real property taxes or general or special assessments, whether the increase results !Tom (i) an increase in the rate at which such taxes or assessments are levied or assessed, or (ii) an increase in the value attributed to the Premises, the Building or the Master Premises by the govemmentai taxing authority, (c) any taxes (of whatsoever nature and however characterized) which become payable by Landlord, whether or not now customary or within the contemplation of Landlord or Tenan~ which are levied in addition to or in lieu of such real or personal property taxes or assessments (i) upon, allocable to or measured by Rent or other amounts payable to Landlord hereunder, Oi) with respect to the receipt of Rent or such amounts by Landlord, or (Iii) with respect to any activity or right of Tenant in the leasing, possession, occupancy, use, operation, managemen~ repair, maintenance" alteration, or improvement of the Premises: (d) any interes~ penalties or delinquency charges thereon which attach for any reason other than late payment or non-payment thereof by Landlord (except to the extent that any such late payment or non-payment is caused by a breach of this Lease by Tenant or by the default of any other tenant of the Master Premises) and (e) annual or other periodic installments under any general or special assessment against the Master Premises, whether first imposed prior to or during the Term, which installments fall due during the Term. The term ''Taxes'' shall not include (a) any taxes, assessments, fees or charges against the personal property of Tenant which tenant is obligated to pay in accordance with the provisions of Section 6.5 below, (b) taxes or assessments against the personal property of any other tenant of the Master Premises, or (c) any income tax, fTanchise tax or transfer tax for which Landlord may be or become personally liable. 6.3 Method of Payment. Estimated Common Area Expenses, whether more or less than the Actual Common Area Expenses, shall be paid by Tenant in equal monthly installments based initially on annual estimates thereof, and shall be due at the time Minimum Monthly Rent is due in accordance with ArtIcle 4 hereof. Landlord will provide Tenant with an annual accounting of Common Area Expenses at the end of each calendar year, or, at Landlord's sole discretion, semi-annually in July and again at the end of any calendar year, and at that time, or at those times, adjust the monthly installment payment for the next calendar year or balance of the calendar year, as the case may be. This adjustment will take into account any over or under payment for the previous year or six months, as the case may be, as well as updated estimates of costs. 6.4 Contests. Tenan~ at its cos~ in good faith and in a lawful manner, may contest the legality or amount of any tax or assessment against the Premises or Master Premises. In furtherance of any such contest Landlord, ff Tenant requests, shall declare to the tax collecting authority that contested payments are paid under protest. Tenant shall indemnify and hold Landlord harmless against any loss or damage resulting from any such contest. If Landlord deems it necessary to prevent a sale of the Premises or the Master Premises or other loss or damage to Landlord, or to prevent the imposition or accrual of any interes~ penalties or delinquency charges, Landlord may require that the entirety of any contested tax or assessmentbe paid under protest or that Tenant take such other steps as Landlord may reasonably deem necessary to prevent sale of the Premises or loss or damage to Landlord. If any contest is adjudicated adversely to Tenan~ Tenant shall promptly pay Tenants Share of any unpaid portion of the contested tax or assessmen~ as well as any increased tax or other charge which may resuit there!Tom. 6.5 Taxes on Tenanfs Personal Property. Tenant shall pay before delinquency, directly to the tax collecting authority, all taxes, assessments, license fees and public charges upon Tenanrs personal property at the Premises which are separately billed to Tenant and which become due during the Term. ARTICLE 7 - Utilities 7.1 Payment by Tenant Tenant shall pay for all gas, hea~ ligh~ water, power, telephone and other communication service, sanitary and sewer charges, janitorial services, scavenger services, and all other utilities and services consumed on or supplied to the Premises during the Term, any of which are separately metered to the Premises or are charged directly to Tenant or the Premises by the supplier of the utility service. Tenant shall pay any costs arising from the hook-up or connection of such utilities or services to the Premises or for the installation of meters to measure any such utilities or services to Tenant. Lessor shall not b~ held liable at any time for the insufficiency of any utility. Tenant shall be responsible to determine the adequàcy of the utilities supplied for his use. Landlord shall have no liability to Tenant for any lack of or failure in such utilities or 8-14 7 INITIALS: (/~ services, whether such failure or lack results from accidents, repairs, strikes, labor disturbances or disputes, or from any other cause (excepting only breaches of this Lease by Landlord). No such lack or failure shall constitute an eviction. Landlord shall not be liable to Tenant for any consequential loss or damage Tenant may sustain from any such lack or failure or in connection with such utilities and services, unless such loss or damage is caused by Landlord's intentional affirmative act(s}. ARTICLE 8 - Maintenance, Repairs and Alterations 8.1 landlord's Obligations. Throughout the Term Landlord shall operate, manage and maintain the Common Areas in such manner as Landlord, in Landlord's sole discretion, shall determine to be prudent or necessary. Landlord shall be required to repair any condition in the Common Areas requiring repair only after Landlord receives actual notice of such condition, and then only within a reasonable time after receipt of such notice. The cost of so keeping and maintaining the Common Areas shall be included as an element of the Common Area Expenses. Landlord shall have no obligation to maintain or repair the Premises except as this Lease explicitly provides. 8.2 Inability To Perform. This Lease and the obligation of Tenant to pay Rent hereunder and to keep, observe and perform all of the other terms, covenants, conditions, provisions and agreements of this Lease on the part of the Tenant to be kept, observed or performed shall in nowise be affected, impaired or excused because Landlord is unable to fulfill any of its obligations under this Lease, or is unable to supply or is delayed in supplying any service expressly or impliedly to be supplied, or is unable to supply or is delayed in supplying any equipment or fixtures, if Landlord is prevented or delayed from doing so by reason of strike or labor troubles, unavailability of materials, riots, rebellion. insurrection, invasion, war, action or interference of governmental authorities, açts of God or any other cause whether similar or dissimilar to the foregoing which is beyond the control of the Landlord. 8.3 Tenant's Obligations. At all times after the Commencement Date, Tenant, at its cost, shall maintain the entirety of the Premises in good and sanitary order, condition and repair excepting only damage caused by fire or other casùalty which this Lease does not otherwise obligate Tenant to repair. Tenant hereby waives any right Tenant may have to make repairs at Landlord's expense under Section 1942 of the Civil Code of the State of California and all rights Tenant may have under Section 1941 of said Civil Code or under any other similar law now or hereafter in effect. T enanfs obligations of maintenance under this section shall be inclusive and shall extend, without limitation, to (a) both structural and non-structural repairs of floors, loading doors, loading docks and pads, entryways, doors and locks, all glazing (including skylights), Tenanfs signs, plumbing systems, electrical systems and heating and air conditioning systems and equipment in the Premises, (b) the repair, or clean up of the consequences, of rain or other water leaks, whether such leaks emanate from the Common Areas or elsewhere, (c) fumigation of the Premises as Landlord may reasonably require for the control of rodents, insects or other pests in or about the Premises, and (d) the repair of any damage to the Master Premises or the Premises directly or indirectly caused by Tenant or Tenanfs agent, employees andlor invitees. 8.4 Warranties. IfTenant requests, Landlord shall assign to Tenant any equipment or appliance warranties running to Landlord, enforcement of which would reduce the cost or facilitate performance of Tenaofs maintenance and repair obligations hereunder. Tenant shall reassign such warranties to Landlord on termination of this Lease. 8.5 Exterior Portions of the Premises. Tenant shall maintain the Premises in a neat and attractive condition and otherwise in a manner that is aesthetically acceptable to Landlord. Tenant shall not store supplies, work in process, inventory or other materials or waste or garbage outside the Premises without Landlord's'prior, written consent, which Landlord may condition upon compliance with applicable recorded restrictions and upon installation, atTenanfs cost, of suitable storage facilities and/or screening which, in Landlord's sole opinion and discretion, is aesthetically acceptable. Such facilities shall constitute Tenanrs Alterations {as said term is hereinafter defined}. 8.6 Service Contracts. Tenant shall use independent contractors to discharge its obligations hereunder to maintain and repair portions of the Premises such as air conditioning and heating systems, or other mechanical equipment. Tenant shall notify Landlord of the identity of any such independent contractors and of the service contract terms. Each such service contract shall provide (a) for automatic· termination if for any reason this Lease terminates and (b) for the automatic assignment to Landlord, upon termination of this Lease, of any cause of action arising under the service contract ili favor of Tenant against the independent contractor. Notwithstanding the foregoing, Tenant shall, at the request of Landlord upon or after the termination of this Lease, deliver to Landlord a written assignment of any such cause of action in favor of Tenant. 8.7 Personal Property of Tenant, Tenant may install in the Premises furniture, fixtures, equipment and machinery {collectively, "Tenanfs Trade Fixtures"} necessary for the business which this Lease permits Tenant to conduct in the Premises. T enanfs Trade Fixtures shall be and remain the personal property ofTenant, which {a} Tenant may replace and remove at any time during the Term when Tenant is not in default hereunder, or (b) shall be removed by Tenant at the request of Landlord, which request shall be within the discretion of Landlord to '. 8-15 8 INITIALS: irb make or not, at any time that Tenant is in default hereunder, or (c) shall be removed by Tenant forthwith after the termination of this lease for any reason other then the defau~ of Tenant Tenant at its cast, shall repair all damage to the Premises which the installation, replacement or removal of Tenanfs Trade Fixtures may cause. From time to time, if and as Landlord requests, Tenant shall fumish a written inventory of Tenant's Trade Fixtures in the Premises. 8.8 Alterations. Tenant shall not make or suffer any alteration, improvement or addition CTenanfs Alterations") to the Premises without first obtaining landlord's written consent Tenanfs Alterations shall include any work by Tenant which affects the Premises, such as, without limitation, any work which affects the exterior of the Premises or any structural, plumbing, electrical or mechanical component of the Premises, but shall exclude (a) Tenanfs Trade Fixtures, which are governed by Section 8.7, and (b) maintenance and repairs performed by Tenant under Section 8.3. Tenanfs Alterations shall be deemed part of Ìhe Premises for purposes ofTenanfs obligations hereunder to maintain and repair the Premises. On termination of this lease, Tenanfs Alterations shall become landlord's property, and Tenant shall surrender Tenanfs Alterations with the Premises uniess Landlord, by written notice to Tenant, requires Tenant to remove all or any portion ofTenanfs Alterations, in which case Tenant, at Tenanfs cost shall remove Tenanfs Alterations or the portion thereof identified by Landlord in such notice, repair any damage such removal causes, and restore the Premises, or the portion thereof affected by such removal, to the condition it was in prior to installation of Tenanfs Alterations or such portion thereof. 8.9 Mechanic's Liens. Tenant shall notify landlord at least fifteen (15) days prior to commencing any work affecting the Premises, regardless of whether this lease requires Tenant to obtain landlord's consent for such work, if Tenant should reasonably expect such work to cost in excess of $1,000, so that landlord has a reasonable amount of time to post a notice(s) of non-responsibility. Tenant shall keep the Premises and Tenanfs ieasehold her,eunder free of any lien (or stop notice, claim or other charge or encumbrance) which may arise out of any work affecting the Premises or any materials or labor furnished to the Premises for or at the behest of Tenant If landlord requests, Ténant shall furnish Landlord with such security, including a labor and materials bond and/or performance bond, as Landlord may deem reasonable to protect the Premises against the attachment or foreclosure of any such lien. ARTICLE 9 - Entry by Landlord 9.1 landlord's Right of Entry. Landlord and Landlord's agents may enter the Premises at all reasonable times to perform landlord's obligations hereunder, to inspect Tenanfs performance of Tenanfs obligations hereunder, to exhibit the Premises to actual or prospective lenders, purchasers and tenants, to post notices of non-responsibility and for any other reasonable purpose. landlord shall have the right to place "lor sale" and "lor renf' signs on the Premises, which Tenant shall neither molest nor obscure, during the last 180 days of the !ann. The performance of work on the Premises by landlord, whether to discharge Landlord's obligations hereunder or to prevent waste or deterioration, including the placement in the Premises of supplies and materials necessary lor such work, shall not be deemed to constitute a partial or total eviction ofTenant and neither Rent nor any other obligation of Tenant hereunder shall abate while any entry or work by Landlord hereunder is underway. landlord shall, however, use its best efforts in the conduct of any such entry or work to minimize any inteñerence with Tenant's use of the Premises. In no case of entry shall Landlord have any liability to Tenant and Tenant shall have no claim against Landlord hereunder. None of landlord's rights under this Section shall be deemed to impose on landlord any obligation for the maintenance or repair of the Premises in addition to the obligations which other Sections of this lease explicitly impose on Landlord. ARTiCLE 10 -Insurance 10.1 liability Insurance. Tenant at Tenanfs COSt shall obtain and keep in Iorce during the Term a policy of Combined Single Limit Personal Injury and Property Damage Insurance insuring Tenant and landlord against any liability arising out of the use, occupancy or maintenance of the Premises and all other areas appurtenant thereto. Such insurance shall be in an amount not less than $1,000,000 per occurrence. The limits of said insurance shall not, however, limit the liability of Tenant hereunder. 10.2 Tanant's Property. Throughout the Term, Tenant aITenant's COSt shall cause all of Tenant's Trade Fixtures and Tenanfs other personal property in the Premises to be insured against loss or damage by fire and such other risks a~ are now or hereafter included under "All Risk" coverage. 10.3 Fire and Extended Coverage. Throughout the Term, Landlord shall cause the Building (but not Tenanfs Trade Fixtures and Tenanfs other personal property in the Premises) to be insured against loss or damage by fire and such ather risks as are now or hereafter included under "All Risk" coverage in cammon use for commercial structures in the vicinity of the Building, including, if Landlord deems necessary, earthquake and/or flood insurance. The cost of said insurance shall be a Common Area Expense; but if such insurance cost is increased because of Tenanfs use of the Premises, Tenant shall pay Landlord the full amount of such - 8-16 9 INITIALS: !).,!? increase. Tenant shall have no interest in, nor any right to the proceeds of, said insurance. All proceeds thereunder shall be paid to Landlord and either (a) be disbursed by Landlord if the damage is repaired and the affected improvements restored, in accordance with such progress payment schedule as Landlord may approve, or (b) be retained in full by Landlord if this Lease is terminated on account of the casualty giving rise to such proceeds. 10.4 Form of Policies. Tenant shall carry all insurance which this Lease requires Tenant to maintain with insurance companies which are satisfactory to Landlord and licensed to do business in the State of Califomia. All policies evidencing such coverage shall provide that (a) any loss shall be payable notwithstanding any act or negligence of Landlord which might otherwise result in a forfeiture of coverage; (b) the carrier waives the right of subrogation against Landlord and against Landlord's agents and representatives; (c) the pOlicies evidencing such coverage are primary and noncontributing with any insurance that may be carried by Landlord; (d) such coverage cannot be canceled, modified, reduced or otherwise materially changed except aller thirty (30) days prior written notice to Landlord; and (e) Landlord is a named insured as Landlord's interest may appear. Tenant may effect for its own account any insurance not required under this Lease. Tenant may provide by blanket insurance, covering the Premises and any other location or locations, any insurance required or permitted under this Lease. 10.5 Procedures and Remedies. Tenant shall, promptly upon receipt thereof, deliver to Landlord, in the manner required for notices, (a) certificates evidencing, and a copy of, all insurance policies and endorsements this Lease requires Tenant to carry, and (b) proof satisfactory to Landlord that Tenant has fully paid the premiums for the procurement and maintenance of such coverage, all within the following time limits: (i) For insurance required at the commencement of the Term, upon execution hereof, (ii) For insurance required at a later date, at I!,ast thirty (30) days before the requirement takes effect; and (iiQ For any renewal or replacement of a policy already in existence, at least thirty (30) days before expiration or other termination of the existing policy. IfTenant fails or refuses to procüre or to maintain the insurance coverage required hereunder, or fails or refuses to furnish Landlord with proof that said coverage has been procured and is in force and paid for, Landlord shall have the right, at Landlord's election and without notice to Tenant but without any obligation to do so, to procure and maintain such coverage. Tenant shall reimburse Landlord on demand for any cost incurred or premiums paid by Landlord in so procuring or maintaining such coverage, and Tenanfs failure to so reimburse Landlord shall constitute a material breach under this Lease. 10 .6 Insurance ot Other Tenants. Landlord shall have no obligation to Tenant to require that other tenants of the Building provide insurance such as is required of Ten ant or at all. Nor shall Landlord be liable to Tenant for any actual or alleged damage or injury to Tenant arising out of the failure of any other tenant of the Building to provide any insurance that may be required by any lease or rental agreement between Landlord and such other tenant or by reason of the failure of Landlord to enforce the insurance provisions of such other lease. ARTICLE 11 -Indemnity 11.1 Waiver of Damages. Landlord shall not be liable to Tenant and Tenant hereby waives any claim against Landlord, for injury to, or death of, any person or damage to any property that may result from any cause whatsoever in connection with the Premises and the Master Premises, other than directly and solely from the intentional affirmative act of Landlord. Tenant hereby fully assumes all risks of damage, from any source, to any property in the Premises. 11. 2 Indemnification. Tenant shall hold harmless, indemnify, and defend the Landlord from and against all claims of liability for the death of or Injury to any person and for property damage at the Premises arising from the Tenant's intentional or negligent acts or omissions occunfng at the Premises. Landlord shall hold harmless, indemnify, and defend the Tenant from and against any and all claims for damages arising from Landlord's breach of any of Its obligations under this Lease. ARTICLE 12 - Damage or Destruction 12 .1 Whole or Partial Destruction. If the Premises are destroyed in whole or in part from any cause, Landlord may elect either to restore the Premises or to terminate this Lease. Landlord shall notify Tenant of its election within sixty days aller any such casualty. If landlord elects to restore, Landlord shall promptly restore the Premises to their prior condition provided that such restoration can be completed within 180 days (which period shall be extended one day for each day of delay resulting from causes beyond Landlord's control) aller Landlord's notice of election to Tenant Tenant hereby expressly waives the provision ofSubälVision 2 of Section 1 932 and Subdivision 4 of Section 1933 of the California Civil Code. Rent shall abate from the date of casualty in the proportion thatTenant Is actually deprived of use of the Premises. If Landlord elects to terminate, Rent shall terminate as of the date of the casualty, and from the date of the notice of election the parties shall have no further obligations under this Lease except for obligations which arose prior to the casualty. , 8-17 10 INITIALS: ~ ARTICLE 13 - Quiet Possession 13.1 Possession. Provided Tenant has performed all of the terms, covenan1s, agreements and conditions at this lBase, inciuding the payment of Rent and all other sums due hereunder, Tenant shall peaceably and quieijy hold and enjoy the Premises against Landlord and all persons claiming by, through or under Landlord, for the Term subject to the provisions and conditions of this Lease. Tenanrs right to use the Premises as herein provided shall be subject to restrictions or other limitations or prohibitions resulting from any laws, statutes, ordinances and govemmental rules, regulations or requirements now in force or which may hereafter be in force, and no such event shall in any way affect this Lease, abate Rent, relieve Tenant of any liabilities or obligations under this Lease or give rise to any claim whatsoever against Landlord. ARTICLE 14 - Default 14.1 Events of Default Any of the following events or occurrences shall constitute a material breach of this Lease by Tenant and, after the expiration at any applicable grace period, shall constitute an "Event of Defaulf' hereunder. Upon the occurrence of an Event of Defaul~ Landlord shall have all the rights and remedies setforth in this Article as well as all other rights or remedies available to Landlord at law or in equity. The following occurrences shall each constitute an Event of Default (a) The failure by Tenant to pay any amount of money in full when due (b) The failure by Tenant to perform any other obligation hereunder, if the failure has continued for a period of thirty (30) days after Landlord demands in writing that Tenant cure such failure; provided, if by its nature the failure cannot be cured within thirty (30) days, Tenant may have such longer period as is necessary to cure the failure upon the condition that Tenant shall have prompijy commenced to cure within said thirty (30) day period and shall thereafter diligenijy prosecute the cure to completion: and provided further, that Tenant shall and hereby does indemnify, defend and hold Landlord harmless against any liability, claim, damage, loss or penalty which may be threatenéd or may in fact arise during the period any such failure is uncured: (c) The vacation or abandonment of the Premises by lBssee. Vacation of the Premises shall include the failure to occupy the Premises for a continuous period of fifteen (15) days or more, whether or not the rent is paid; (d) A general assignment by Tenant for the benefit ofTenanrs creditors: any voluntary filing, petition or application by Tenant under any law relating to insolvency or bankruptcy, a reorganization, an arrangement or otherwise: the abandonment or vacation or surrender of the Premises without Landlord's prior written consent or the dispossession of Tenant from the Premises (other than by Landlord) by process of law or otherwise: (e) The involuntary filing against Tenant (or any general partner of Tenant if Tenant is a partnership) of (I) a petition to have Tenant (or any partner of Tenant if Tenant is a partnership) declared a bankrup~ or (ii) a petition for reorganization, an arrangement or otherwise; the abandonment or vacation or surrender of the Premises by Tenant without Landlord's prior written consent or the dispossession of Tenant from the Premises (other than by Landlord) by process of law or otherwise; (I) The involuntary filing against Tenant (or any general partner of Tenant if Tenant is a partnership) of (Q a petition to have Tenant (or any partner of Tenant if Tenant is a partnership) declared a bankrup~ or (ii) a petition for reorganization or arrangement of Tenant under any law relating to insolvency or bankruptcy, unless, in the case of any such involuntary filing, the same is dismissed within sixty (60) days; the appointment of a trustee or receiver to take possession of all or substantially all Tenanfs assets, or the attachmen~ execution or other judicial seizure of all or substantially all Tenanfs assets located at the Premises, or at Tenanrs interest in this Lease, unless such appointmen~ attachmen~ execution or seizure is discharged within thirty (30) days. 14.2 Landlord's Remedies Upon an Event of Default The Landlom has the right to termInate and seek damages as available under California law. 14.3 Landlord's Right to Cure. Aller an Event'of Default, Landlord, in addition to or in lieu of exercising. other remedies, may (but without any obligation so to do) cure the breach underlying the Event of Default for the account and at the expense of Tenant provided that Landlord by prior notice shall first allow Tenant a reasonable opportunity to cure, except in cases at emergency, where Landlord may proceed without prior notice to Tenant Tenant shall, upon demand, immediately reimburse Landlord for all costs (including costs of settlements, defense, court costs and attomeys' fees) which Landlord may incur in the course of any such cure. 14.4 Security No Bar. No security or guaranty for the performance ofTenanrs obligations hereunder, which Landlord may now or hereafter hold, shall in any way constitute a bar or defense to any action initiated by Landlord for unlawful detainer or for the recovery of the Premises, for enforcement of any obligation of Tenant hereunder or for the recovery of damages caused by a breach at this Lease by Tenant or by an Event of Default 1 ~.I PeFleci sf lllflitatiÐRS. '.ny slaim, demand. Fight of defeRse er any (dAd by Tenant. -.\-hlsR is baBsd "pen aF 8Fi881 in any SORA.StiSA with this LauB 9F VIe R818t1atieR& ,FIeF to its BMGYtiGR, shall be ÞaFFed HAl... Tanant SSRlIII.ACes an astlon VI.NeR, sr inteFps.e. In a lelal preseedlAg a ~eteRse by FeUeR th.F8e~ 'yithln .ix (i) IIIO'*'S after the ~ate sf the IRactl~R sr SlRissloR 8r the date af the 8SSLlFFeRQa eltha aveRt arøfthe astleR tou~hiBh the elaim, demaRd. Fight, erdefense Felatea, -!Jhishwer appll88. , 8-18 11 INIT IALS : f)ý 14.6 Remedies Cumulative. The nghts, pnvileges, elections and remedies of Landlord and Tenant herein are cumulative. Landlord may exercise them at any time and from time to time singly and in combination. No provision of this Article shall be deemed to limit or negate Landlord's nghts under this Lease to indemnification from Tenant (or T enanfs insurance carriers) for any liability asserted against or imposed upon Landlord, whether before or after termination of this Lease, which liability is directly or indirectly based upon deaths, personal injunes, property damage or other matters occurring pnor to the termination of this Lease. ARTICLE 15 - Condemnation 15.1 Definition. For the purpose of this Lease: (a) The term ''Taking'' shall mean a taking of possession of or title to the Premises as a result of, or damage related to the exercise of the power of eminent domain and shall include a voluntary conveyance, in lieu of court proceedings, to any agency, authority, public utility, person or corporate entity empowered to condemn property; (b) The term ''Total Taking" shall mean the Taking of the entire Premises or so much of the Premises as prevents or substantially impairs the use thereof by Tenant for the uses herein specified: provided, however, in no event shall the Taking of less than twenty percent (20%) of the Premises be considered a Total Taking; (c) The term "Partial Taking" shall"mean the Taking of a portion of the Premises which does not constitute a Total Taking: (d) The term "Date of Taking" shall mean the date upon which title to the Premises, or a portion thereof, passes to and vests in the condemnor or the effective date of any order for possession if issued pnor to the date title vests in the condemnor; and (e) The term "Award" shall mean the amount of any award made, consideration paid, or damages ordered as a result of a Taking. 15.2 Total Taking. In the event of a Total Taking dunng the Term (a) the nghts of Tenant under the Lease and the leasehold estate ofTenant in and to the Premises shall terminate as of the Date ofTaking; (b) Landlord shall refund to Tenant any prepaid Rent and the balance, if any, of any Security Deposit and (c) the total Award shall be paid to and be the property ofLandlord. 15 .3 Partial Taking. In thè event of a Partial Taking dunng the Term (a) the nghts of Tenant under the Lease and leasehold estate of Tenant in and to the portion of the Premises which is the subject of the Taking shall terminate as of the Date of Taking: (b) from and after the Date of Taking the Minimum Monthly Rent hereunder shall be reduced in the proportion that the square footage of the Premises which is the subject of the Taking bears to the square footage of the Premises: (c) Tenanfs Share of Common Area Expenses shall be adjusted so that Tenanfs Share to be paid by Tenant from and after the date ofTaklng is equal to the ratio of the area of the Premises after the Date of Taking to the area of the Master Premises after the Date of Taking; and (d) the total Award shall be paid to and be the property of Landlord. ARTICLE 16 - Subordination 16.1 Automatic Subordination. This lease shall automatically be and become subordinate to (a) the lien of any mortgage, deed of trust or any other hypothecation for security, now or hereafter encumbenng the Premises or the Master Premises, or any portion thereof. (b) to any and all advances made on the secunty thereof. and (c) to all renewals, refinancing, modifications, consolidations, replacements and extensions thereof. Ifhowever, the holder of, or beneficiary under, any such secunty shall elect to have this Lease constitute an interest pnor to the lien of such holder's or beneficiary's secunty, such holder or beneficiary may give written notice to Tenant and thereupon this Lease shall be deemed pnor to such secunty, whether this Lease is dated (and any memorandum of this Lease recorded) pnor or subsequent to the date of execution or recordation of suCh security and regardless of the pnority of recordation. The effective subordination of this Lease to anyMure mortgage, deed of trust or other hypothecation shall, however, be subject to fulfillment of the condition precedent that the holder of or beneficiary under such secunty shall first have agreed in writing in favor of Tenant that this Lease shall not be terminated in case of any foreclosure or sale persuant to the terms of such mortgage or deed of trust so long as Tenant is not in default under this Lease. ARTICLE 17 - Holding Over 17.1 Consequences of Holding Over. This Lease shall terminate and become null and void without further notice upon the expiration of the Term, and any holding over by Tenant after such expiration shall not constitute a renewal hereof or give Tenant any nghts under this Lease, except as otherwise herein provided, it being understood and agreed that this Lease cannot be renewed, extended or in any manner modified except in writing signed by both parties hereto. If Tenant shall hold over for any pened after expiration of the Term, Landlord may, at its option, exercised by written notice to Tenant, treat Tenant as a tenant from month-to-month commencing on the first day following the expiration of this Lease and subject to the terms and conditions herein contained, at a Minimum Monthly Rent in the amount of 150 percent of the last Minimum Monthly Rent then paid, plus all other elements of Rent payable hereunder. If Tenant fails to surrender the Premises upon the expiration of this Lease despite demand to do so by Landlord, Tenant shall indemnify and hold Landlord harmless from all loss or liability, including without limitation, any claim made by any succeeding Tenant founded on or resulting from such failure to surrender. '. 8-19 12 INITIALS: Ø4 ARTICLE 18 - Assignment and Subletting 18.1 Landlord's Consent Required. Tenant shall not assign, mortgage or hypothecate this Lease or any interest herein, or the leasehold estate evidenced hereby, or sublease or permit the use of the Premises by any other person or business without first obtaining Landlord's written consent, which consent Landlord shall not unreasonably withhold, but which Landlord may nevertheless condition upon such factors as the identity, reputation, proposed use, financial worth and stability and operating ability of any proposed assignee or subtenant Landlord may also condition its consent to any such lransaction for which Tenant requests Landlord's consent, upon the payment or assignment to Landlord of any amount equal to any excess of (a) the total consideration Tenant receives from the other party to such transaction for the portion of the Premises affected (whether denominated as rentals or otherwise), over (b) the consideration Landlord receives as Rent from Tenant hereunder. Any lransfer of this Lease by operation of law, whether resulting from death, merger, stock transfer of 80 percent or more for corporate tenant, consolidation or liquidation, shall constitute an assignment for purposes of this Section. Consent to one assignment, mortgage, hypothecation, subletting or other lransfer shall not be deemed to constitute consent to any subsequent assignment, mortgage, hypothecation, subletting or other lransfer. Any assignment, mortgage, hypothecation, subletting or other lransfer of this Lease, or any interest herein, or the leasehold estate evidenced hereby, made or attempted by Tenant without receiving Landlord's written consent as required by this Section, shall be null, void and of no effect, and shall, at the option of Landlord, constitute a breach of this Lease for which Landiord shall have the right to declare that this Lease has been terminated. 18.2 No Release of Tenant. No subietting or assignment, even with Landlord's consent, shall relieve Tenant of its duty to pay the Rent and to perform all its other obligations hereunder. . ARTICLE 19 - Transfers and Refinancing 19.1 Conveyance of Landlord's Interest. Landlord may sell, assign, or otherwise lransfer, in whole or in part, its interest in this Lease and its reversion hereunder. Landlord shall require the lransferee to accept the interest transferred subject to this Lease. Any such sale, assignment or lransfer shall release Landlord from any further liability to Tenant hereunder, and, after any such lransfer, Tenant shall iook solely to the lransferee for the performance of the obligations of the party who from time to time is the landlord under this Lease. Section 4.4 hereof shaJl govern disposition of the Security Deposit If Landlord lransfers to such a lransferee any other security Landlord holds for performance ofTenanfs obligations hereunder and so notifies Tenant, Landlord shall have no further liability to Tenant concerning such security and Tenant shall henceforth look solely to the lransferee for the return of such security upon performance of the obligations secured thereby. 19.2 Estoppel Certificate. Within ten days after written request from Landlord, Tenant shall execute, acknowledge and deliver to Landlord a statement in writing (a) certifying that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such modification and certifying that this Lease, as so modified, is in full force and effect), the dates to which Rent and any other charges payable byTenant hereunder are paid in advance, if any, and the amount of the Security Deposit, (b) acknowledging that there are not, to Tenanfs knowledge, any uncured defaults on the part of Landlord hereunder or specifying such defauits with particularity if any are claimed, and (c) in case of a lransfer of Landlord's interest, attoming to the transferee. Tenant hereby acknowledges that prospective purchasers and encumbrances of the Premises or the Master Premises, or any portion thereof, may incur obligations or extend credit in reliance upon the representations of Tenant contained in any such statement. Tenanfs failure to deliver such statement to Landlord within said ten day period shall conclusively evidence Tenanf.s representation and agreement that this Lease is in full force and elect, without modification, except as Landlord may represent; there are no uncured defaults in Landlord's performance hereunder; and Tenant has not paid more than one month's Minimum Monthiy Rent in advance nor made a Security Deposit in excess of the Security Deposit specified in Article 1 of this Lease. ARTICLE 20 - Surrender 20.1 Surrender of Lease Not Merger. A surrender of this Lease by Tenant, a cancellation of this Lease by mutual agreement between Landlord and Tenant, or a termination of this Lease for any reason, shall not automatically work a merger. Mer such a surrender, cancellation or termination Landlord may (a) terminate any or all then existing subtenancies and/or (b) treat such surrender, cancellation or termination as effecting an assignment to Landlord of any or all existing subtenancies. This Section shall not be deemed to give Tenant any right to surrender, cancel or terminate this Lease without Landlord's consent 20.2 Redelivery of Premises to Lessor. Upon termination of this Lease for any reason, Tenant shall surrender the Premises to Landlord in the same condition in which Tenant received them excepting only (a) reasonable wear and tear and (b) such of Tenanfs Alterations as Landlord does not require Tenant to remove. Tenant shall promptly discharge its obligations hereunder to remove Tenanfs Trade Fixtures and to repair any damage which removals from orrestoration of the Premises may cause. Any personal propeqy of Tenant which Tenant fails to remove from the Premises within 10 days upon the termination of this Lease shall be deemed abandoned. 8-20 13 INITIALS: @, ARTICLE 21 - Signs 21.1 General. For purposes of this Lease, "sign" or "signs" shall mean and refer to any temporary or permanent, printed or written, verbal or symbolic display, whether on paper, plastic, metal or other medium, which is placed in the Preml$es so as to be visible from any portion of the Master Premises other than the Premises. Tenant may install In the Premises signs which identify Tenant and the business Tenant conducts in the Premises, provided Tenanfs signs comply with (a) applicable requirements of governmental authorities (b) applicable recorded restrictions and (c) Landlord's requirements for coordinating Q) Tenanfs signs with the signs of other tenants in the Master Premises, in which respect Landlord may limit the location, size and type of Tenanfs signs and (ii) any common directory, accessible to the general public, of all tenants and occupants in the Master Premises. Tenant shall maintain its signs in neat condition and repair throughout the Term. Tenant shall repair any damage which maintenance, alteration or renovation of its signs may cause during or at the expiration of the Term. 21.2 Sign Criteria. Landlord's Sign Criteria for the Premises is contained in Exhib~ C, attached hereto. 21.3 Approval Required. Prior to the installation of any signs on the Premises, Tenant shall submit to Landlord for Landlord's approval, an Installation plan in sufficient detail for Landlord to insure that Tenant is in compliance with the sign criteria for the Premises. Landlord's approval shall be made in writing within 15 days after receipt thereof, shall constitute permission to proceed with the sign installation, and shall not be unreasonabty withheld. If Landlord disapproves of any proposed installation plan, Landlord shall specify, with reasonable particularity, the reason(s} for such disapproval. ARTICLE 22 - Notices 22.1 Delivery of NoticeS. Unless otherwise specifically provided herein, all notices, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly delivered upon personal delivery or as of the date deposited in the by United States mail, postage prepaid and addressed, if to Landlord, to Landlord's address, and if to Tenant to Tenanfs address, orto such other address or to such other person as either party shall designate to the other for such purpose in the manner hereinabove set forth. ARTICLE 23 - Parking 23.1 Use of Parking Areas. Landlord shall have the right to designate wha~ if any, portion of the Common Areas shall be used for the parking of motor vehicles and, from time to time, to establish, modify and enforce reasonable rules and regulations with regard to the parking of motor vehicles in such portions of the Common Areas. In addition Landlord shall have the righ~ from time to time, to change the area, level, location and arrangement of the parking area or spaces, to restrict parking by Tenant, and Tenanfs officers, agents and employees to employee parking areas: to enforce parking charges (by operation of meters, the Installation and operation of ticket dispensing and collecting kiosks, to close temporarily all or any portion of the parking areas or facilities; to discourage non-customer parking; and to do and perform such other acts in and to the Common Areas and said improvements as, in the use of good business judgmen~ the Landlord shall determine to be advisable with a vi_ to the improvement of the convenience and use thereof by tenants of the Master Premises, their officers, agents, empioyees and customers. 23.2 Restrictions. All parking areas or spaces designated by Landlord are for the common use of tenants of the Building and such tenants' employees and invitees and no parking areas or spaces are designated, or allocated or reserved for the exclusive use of Tenant or any other tenant of the Building and will not be so marked. Parking spaces are to be used exclusively for the parking of passenger vehicles and shall not be used for storage or parking of any boats, trailers of any kind, motor homes, trucks or inoperational vehicies. Any illegally parked vehicles will be towed from the Master Premises to impound lots. Redemption of such vehicles will be at the expense of the owner. No vehicles shall be repaired, serviced. or washed in the Master Premises. Landlord may designate employee parking areas and Tenant shall require employees of Tenant to park only in such designated areas. ARTICLE 24 - General Provisions 24.1 Integration. This Lease, together with any exhibits hereto, constitutes the sole agreement between Landlord and Tenant and supersedes all prior written or oral agreements or understandings between them pertaining to the transactions contemplated herein. Neither party, nor any employee, officer or other agent of either party, has made to the other any representations, warranties or inducements, express or implied, except as set forth herein. 24.2 Time is of the Essence. Time Is and shall be of the essence of this Lease except as to delivery of possession of the Premises. " 8-21 14 INITIALS: ~ 24.3 Singular and Plural Tenns. The words "landlord" and ''Tenanf' as used herein, shall include the plural as well as the singular. Words used in neuter gender include the masculine and feminine and words in the masculine or feminine gender include the neuter whenever the context so requires. If there be more than one Landlord or Tenant, the obligations hereunder upon Landlord or Tenant shall be joint and several; as to a Tenant which consists of husband and wife, theobiigations shall extend individually to their sole and separate property as well as their community property. The term "landlord" shall mean only the owner or owners at the time in question of the fee title to, or a tenanfs interest in a ground lease of, the land underlying the Building. The obligations contained in this lease to be performed by the Landlord shall be binding on landlord's successors and assigns only during their respective periods of ownership of such land. 24.4 Captions. The captions of Articles and Sections in this lease are for convenience only, are not a part of this lease and do not in any way limit or simplify the provisions hereof. 24.5 Modifications. All amendments or other modifications hereof must be in writing and signed by the parties hereto. 24.6 Governing Law. This Lease, and the rlghts and obligations of the parties hereto, shall be interpreted and enforced in accordance with the laws of the State of Califomia in effect on the date hereof. 24.7 Exhibits. Exhibits attached hereto, and Addendum's and schedules initialed by the parties, are deemed by attachment to constitute part of this lease and are incorporated herein. 24.8 Light and Air Easement Any diminution or shutting off of light or air by any structure which may be erected on landS adjacent to the Building shall in no way affect this lease, abate Rent or otherwise impose any liability on landlord. 24.9 Successors and Assigns. This lease and each of its covenants and conditions shall be binding and shall inure to the benefit of the parties hereto and their respective heirs, successors and legal representatives and their respe.ctive assigns, subject to the provisions hereof. Any successor or assignee of Tenant who accepts an assignment of or the benefit of this lease and enters into possession or enjoyment hereunder shall thereby assume and agree to perform and be bound by the covenants and conditions thereof. Nothing herein contained shall be deemed in any manner 10 give a right of assignment or subletting 10 Tenant other than in the manner set forth in Article 18 above. 24.10 No Partnership. The parties intend by this lease to establish the relationship of Landlord and Tenant only, and do not intend to create a partnership, joint venture, joint enterprise, or any business relationship other than that of landlord and Tenant 24.11 Waivers. No waiver or failure by Landlord or Tenant 10 enforce any provision of this lease shall be deemed to be a waiver of any other provision of this lease or of any subsequent breach of the same or any other provision. If Landlord accepts Rent or performance of any other obligation by Tenant, Landlord shall not be deemed to waive or forgive any breach or Event of DefauR unless landlord expressly so states in writing. No payment by Tenant or receipt by landlord of a iesser amount than the Rent payment herein stipulated shall be deemed to be other than on account of the Rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as Rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right 10 recover the balance of such Rent or pursue any other remedy provided In this lease. 24.12 Severabiiity . If any provision of this lease, or the application thereof to any person or circumstance, shall 10 any extent be or become invalid or unenforceable, the remainder of this lease, or the application of such provision to persons or circumstances other than those as to which R is invalid or unenforceable, shall not be affected thereby, and each provision of this lease shall be valid ánd be enforced to the fullest extent permitted by law. 24.13 Corporate Authority. IfTenant is a corporation, each individual executing this lease on behalf of said corporation represents and warrants that he or she is duly authorized to execute and deliver this lease on behalf of said corporation, in accordance with a duly adopted resolution of the board of directors of said corporation or in accordance with the bylaws of said corporation, and that this lease is binding upon said corporation in accordance with its terms. 2~.1 i Crn.Rant Net te ReGard. Neither this lease. RSF any RUNRÐFaRduA1 II.Fest Asr 311Y dSSWRl8Rt t8 ".'VRlth tills baase i8 appeRdeCil SF attaGhed as an exhibit, Fider ar attaGhmsAt, shall be fllesl fer ressRI aF sthsF\I'fls8 ,"spied, displayed, SF resaFd8d In any ,wÞlis NGa.. 24.15 Americans with Disabilities Acl Tenant assumes all responsibility for compliance with all requirements of the Americans with Disabilities Act of 1990 and as revised fi'om time 10 time. Tenant agrees to hold harmless, defend, and indemnify landlord fi'om any and all actions brought for any violations of the Act unless due to negligence of landlord within the confines of the Tenanfs space as defined in this agreement This paragraph pertains 10 the Americans with Disabilities Act at both the Federal and State level. 24.16 examination of Lease. Submission of this instrument for examination or signature by Tenant does not constitute a reservation of or option to lease, and it is not effective as a lease or otherwise until execution and delivery by both Landlord and Tenant. 24.17 Amendments. To be effective and binding on landlord and Tenant any verbal representation, promise, amendments, modifications, addition or deletion 10 the provisions of this lease mus~be in writing and made a part of this lease. 8-22 15 INITIALS: ~ 24.18 If either party named herein brings an action to enforce the terms hereof or declare rights hereunder, the prevailing party in any such action, on trial or appeal shall be entitled to his reasonable attorney's fees to be paid by the losing party as fixed by the court. SEE ADDENDUM ON PAGE 17 IN WITNESS WHEREOF, Landlord and Tenant, respectively, have executed this Lease as of the date first above written. DATED: 20 LANDLORD: INVESTCAL REALTY CORPORATION ~~ Ý 6r~ TENANT: CITY OF CHULA VISTA By: EDWIN L. BALL By: STEPHEN C. PADILLA Title: MAYOR Title: SECRETARY - TREASURER ATIEST: SUSAN BIGELOW, CITY CLERK APPROVED AS TO FORM: ANN MOORE, CITY AITORNEY '. 8-23 16 INITIALS: {;g ADDENDUM TO LEASE This ADDENDUM TO LEASE shall be in addition to the terms of the lease dated Auoust 3. 2004 , between Investcal Realty Corporation, as Landlord, and The City of Chula Vista . as Tenant, pertaining to premises located at Eastlake Business Center. 900 Lane Avenue. Suite 100. Chula Vista. CA 91914. 1. Option. Provided Tenant is not in default of any of the terms of this lease. Tenant shall have the option of extending the term of this lease for Two (2) additional periods of Two (2) years under the same terms and conditions. In order to exercise this option, Tenant shall notify Landlord in writing of this election to extend the term of the Lease no later than ninety (90) days before the expiration of the Lease. 2. Sign Criteria. Tenanfs business signs must be in accordance with the Lane Avenue Sign Criteria and approved by the Landlord prior to installation. All signs must be installed within 30 days of the commencement date of the lease. 3. .Improvements. Landlord shall complete the following at their sole expense: a. Build a hállway to separate the building into approximately a 5,500 square feet suite per drawings dated 7/28/04; b. Relocate three (3) walls, including existing electrical plugs per drawing dated 7/28/04; c. Remove five (5) doors per drawing dates 7/28104. d. Install one (1) door and relocate one (1) door per drawing dated 7/28/04. e. Patch carpet where walls are moved with a carpet match as close to the existing carpet. IN WITNESS WHEREOF, Landlord and Tenant, respectively, have executed this Lease as of the date first above written. DATED: 20 LANDLORD: TENANT: INVESTCAL REALTY CORPORATION CITY OF CHULA ViSTA ~hAJ-<~ -< ~ . By: EDWIN L. BALL By: STEPHEN C. PADILLA Title: SECRETARY - TREASURER Title: MAYOR ATTEST: SUSAN BIGELOW, CITY CLERK APPROVED AS TO FORM: , ANN MOORE, CITY ATTORNEY 8-24 17 INITIALS: ~ FXHIRIT A' GFNFRAI RI II FS AND RFGI II ATIONS 1. Tenants using the common area trash enclosures will dump all trash inside the bins. Tenants will keep the lids of the trash bins closed as well as the doors to the enclosures. 2. All boxes to be dumped in the bins will be crushed or folded to enable more trash In the bins. 3. AI loading and unloading of goods, supplies, fixtures, display equipment and other personal property shall be done only through the rear entrance of tenant's premises or with special approval of owner. . 4. All trash, refuse and waste materials shall'be regularly r~moved from the premises of each occupa'nt and until 'removal shaU bè· stor!!din.'(i)' adequate containers, which ~11r.h r.nnt::linAr!=: !=I:h::lll hp. Inr.::ItAn ~n ::I!::: not to hp. vi!:::ihlA to thp. gAnArnl pllhlir. .hopping in Ihp. ·.hopping r.p.nlp.r, and (ii) so as not to constitute any health or fire hazard <:Jr nuisance to any occupant. 5. No portion of the shopping center shall be used for lodging purposes. 6. Any vehicle except delivery vehicles parked in front of a unit or in the driveway areas is subject to a ticket and/or towing. All tenants and customers are to park in the designated parking spaces. 7. Disabled vehicles will be tagged and towed at the owners expense. No vehicies are to be ieft in the parking lot i<:Jnger than two (2) days at a time without prior approval of the landiord. . 8. Tenant shall not be allowed to storé any materials in the parking lot. All supplies and equipment, other than vehicles, are to be kept within the leased Premises. 9. Speed Limit not to exceed 10 MPH. 10. Children are not allowed to play, ride bikes, skateboards, in the parking lot or common areas. 11. Conduct of persons: No persons shall conduct the following activities on any part of the common areas: Vend, peddle, or solicit orders for saies or distribution of any merchandise, . deVice, service, periodical, book, pamphlet, or other matter whatsoever. Exhibit any sign, placard, banner, notice or other written material. Distribute any circular, booklet, handbill, placard, or other advertising material. Solicit membership in any organization, group or association or contribution for any purpose. . Parade, rally, patrol, picket, demonstrate, or engage In any conduct that might tend to interfere with or impede the use of any of the common areas by any person entitled to use the same, create a disturbance, attract attention or harass, annoy, disparage or be detrimental to the interest of any of the retail establishments within the shopping center. , 1 INITIALS : 8-25 t~ FXHIRIT A' (';FNFRAI RI" FS AND RF(';III ATIONS Deface,. damage or demolish a~y sign, light standarçJ or fIXture, landscaping· matenalor other improvements within the shopping cel)ter, or the property of customers, business invitees or employees situ~ted within the shopping èenter. . The listing of spécific items as being prohibited is not intended to be exclusive, but to indicate in general the manner in which the nSht to use the common areas solely as a means of access ánd convenience in. shopping .at the retail establishments in the shopping center is limited and controlled. 2 , 8-26 :mITIALS: tJj EXHIBIT "B" LANE AVENUE SIGN CRlTJ::RIA Sign Type 4 - E¡1tryWiridow Graphics . . Sign Type 4 addre¡¡ses the general standards·forall gràphics placed on glass entry windows. Sign Type 4.is limited tobiJildings with more .than 2 entries. Sign Type 4 specifically applies.to Building Type G.. . 1. Sign Type 4 shall be limited to· the name of the tenant and tenanfs busin¢ss houis. 2. Sign Týpe 4 may be placed on entry door or widoWs to the left or ñght of entry door. . 3. Typestyle to be used is ITC Avant Garde Demibold, upper and lower case, 2" cap height for tenanl. name-. and· ITC Avant Garde, upper and lower case, 1" cap height ibHnÎsine¡¡s· hoors, unle¡¡s a different typestyle is integral with a trademar1< and/or logotype. . Positioß is flush left 4. Mateñal is to be white vinyl die cut letters placed directly on the glass. No other colors or mateñals are allowed. ..,........ . . .. . .. .. . - . . Business Name Business Hour.s lÐgallnfo. , '. .. - INITIALS: , &j,- 8-27 EXHIBIT C RUI F~ FOR ~TORAGF & HANOI ING OF HA7ARnOLJ~ MATFRIAI ~ . . Section 1 '. . .-"mhihitio~ ofl')toi11QA. Lessee shall not cause or permit any Hazardous Material (as hereinafter defined) to be brought upon, kept or used in or about the Premises by Lessee, its agents,' employeeS; contraCtors 'or invltees in a manner or for a purpose prohibited by or which couid result in a liabiiity under ariy applicable law, regulation, rule or ordinance. Lessee shall comply with all affirma~ve legal r'eq~irements conceming Hazardous Materials. If Lessee breaches the obliga~on stated In the preceding sentences, or if the presence of Hazardous Materials on the Premises caused or permitted by Lessee (including Hazardous Materials specifically permitted and identified. below) results in a release of a hazardous substances or Hazardous Material, a discharge of a polluíant or contaminant or any other contamination of the Premises resul~ng in a poten~al violation of or incurrence of liabiiity under any law, regulation, ·rule ôr ordinance,. or if contámination of the. Premises by a Hazardous Material' otherwise occurs for which tessee is leg~II~¡ liabie· to. LessÚ for damage resul~ng therefrom, then Lessee shall indemnify , protect, defend and hold Lessor, its agents aod contractors harmless from any and all claims, judgments, damages, penalties, fines, costs, liabiiities, injunctive actions or orders, or losses (including without limitation diminution in value of the Premises, damages for the loss or restriction on use of rentable or usable space or of any amenity of the Premises, damages arising from any adverse settlement of claims, "response costs" as defined in the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), attorney's fees, consultant fees and expert fees) which arise during or after the Lease Term as a result of such contamina~on. Section 2 CIp.An-up. This indemnification of Lessor by Lessee pursuant to Subsection 1 above includes, without limitation, costs incurred in connection with any investigation of site condi~ons or any cleanup, remedial, removal, or restora~on work required by any federal, state or local govemmental agency or political subdivision because of Hazardous Material present in the soil or ground water on or under the Premises or emana~ng from the Premises. Without limiting the foregoing, if the presence of any Hazardous Material on the Premises caused or permitted by Lessee resuits in any contamination of the Premises, 'Lessee sh~1I prompliy take all actions at its sole expense as are necessary to return the Premises to the condition existing prior to the introduction of any such Hazardous Material to the Premises, provided that Lessor's approval of such action shall first be obtained, which approval shall not be unreasOnably withheld so long as such actions would not potentially have any material adverse long-term or short-term effect on the Premises. Section 3 Ru"lnA"". Lessor acknowledges that it is not the intent of this Section to prohibit Lessee from opera~ng its business as described above. Lessee may operate its business so long as the use or presence of Hazardous Material is strictly and properly monitored according . to all applicable govemmental requirements. As a matenal inducement to Lessor to allow Lessee to use Hazardous Matenal in connection with its business, Lessee agrees to deliver to Lessor pnor to the Commencement Date a list iden~fying each type of Hazardous Matenal to be present on the Premises and settlng forth any and all governmental approvals or permits required in connection with the Hazardous Matenals List at least once a year and shall also deliver an updated list before any new Hazardous Matenals are brought onto the Premises or on or before the date Lessee obtains any addi~onal permits or approvals. Section 4 TArmiMtion of I AA"A. Notwithstanding the provisions of Subsection 1 above, Lessor shall have the nght to terminate the Lease In Lessors sole and absolute discretion if (i) any anticipated use of the Premises by Lessee involves the generation or storage, use, treatment or disposal of Hazardous Matenal in a manner or for a purpose prohibited by any governmental agency or authonty; (ii) Lessee has been required by any lender or governmental authority to undertake removal or remedial action in connection with Hazardous Materials resulted from Lessee's action or use of the Premises (unless Lessee is in full compliance with all requirements connected with such removal or remedial action); or (iii) Lessee is subject to an enforcement order issued by any governmental authority in connection with the use, disposai or storage of a Hazardous Matenal on the Premises (unless Lessee is in full compliance with the terms of such enforcement order). '. 1 INITIALS: .8-28 £4 Section 5 A..ignmAnt ~nrl ~llhlAtting Notwithstanding the provisions of Subsection 1 above, if (i) eny enticipated use of the Premises by any proposed assignee or sublessee involves or reasonably could involve the generation or stor.;¡ge, use treatmt1nt or disposal of Hazardous Material in a manner or for a purpose prohibited bY'aAY law, regulàtion, rule or drdinance; (ii) the proposed assignee or sublessee has been required by any prior Lessor, lender or governmental authority to undertake removal or remedial actiòn in connection with any Hazardous Material on a property if the presence of the Hazardous Material resulted from such party's action or use of the property in questions; or (iIi) the proposed assignee or subleSsee is subject to an enforcement order issued by any governmental authority in connection witt> the use, disposai or storage of a Hazardous Material, it shall not be unreasonable for Lessor to withhold its consent to an assignment or subletting to such proposed assignee o"r sublessee. This paragraph shall not preclude other grounds for Lesso~s rejection of a súblease or assignment pursuant to any other provisions of the Lease. Section 6 I Assn~s Right tn PArfnrm TAstS. At any timè prior to the expiration of the Lease Term, Lessor shall have the right to enter upon the. Premises in order to conduct appropriate tests of water and soil and to deliver to Tenant the results of such test to demonstrate that levels of any Hazardous Materials in excess of permissible levels has occurred as a result of Lessee's use of the Premises. Lessee shall further be solely responsible for and shall defend, indemnify and hold the Lessor, it agents and contractors harmless from and against all claims, costs and liabiiities including actual attorneys' fees and costs, arising out of or in connection with any removal, remediation, clean .up, restoration and materials required hereunder to return the Premises and any other property of whatever nature to their condition existing prior to the appearance of the Hazardous Materials. Section 7 I ASSAA" Ohlig~tinns. Lessee's obligations under this exhibit shall survive the termination of the Lease. During any period of time employed by Lessee after the termination of this Lease to complete the removal from the Premises or remediation of any such Hazardous Materials, Lessee shall continue to pay the full rental in accordance with this Lease, which rental shall be prorated daily. Section 8 HA"lth ~nrl ~"f"ty r.nrlA ~Actinn ?'¡?~9 7. Lessee recognizes its obligations under California Health and Safety Code Section 25259.7 to notify Lessor of any release of a hazardous substance that Lessee knows or has reason to believe has or wiil come to be located on or beneath the Premises. Section 9 np.finition of "H~7::!rrtnu~ M::!tF:~ri:::lI~". The term IIHazardous Matérials" shall mean any toxic or hazardous substance, material or waste or any pollutant or contaminant or infectious or radioactive material, including but not limited to those substances, materiais or wastes regulated now or in the future under any of the following statutes or regulations promulgated thereto: (1) any "hazardous substance" within the meaning of the Comprehensive Environmental Response, Compensation and Liability act of 1980, as amended ("CERCLA"), 42 U.S.C. " 9601 at.seq. or the California Hazardous Substance Account Act, Cal. Health & Safety Code " 25300 at .seq.; (2) any "hazardous waste" within the meaning of the Resource Conservation and Recovery Act, 42 U.S.C. " . 6901 at.seq.; (3) any "hazardous waste" or "extremely hàzardous waste" within the meaning of the Caiifomia Hazardous Waste Control Law, Cal. Health & Safety Code" 25100 at.seq.; (4) any "hazardous chemical substance or mixture" or "imminently hazardous chemical substance or mixture" within the meaning of the Toxic Substances Control Act., 15 U.S.C. " 2601 at.seq.; (5) any "hazardous air pollutant" within the meanin9 of the Federal Clean Air Act, 42 U.S.C. "7400 at .seq.; (6) any "toxic pollutant" or "oil or hazardous substance" within the meaning of the Federal Water Pollution Control Act, 33 U.S.C. " 1250 at.seq.; (7) any "contaminant" within the meaning of the Safe Drinking Water Act., 42 U.S.C. " 300i; (8) any "chemical known to the state to cause cancer or reproduct.ive toxicity" within the meaning of the Safe Drinking Water and Toxic Enforcement Act. of 1986 ("Propos~ion 65"), Cal.Health & Safety Code " 25249.5 at .seq.: (9) petroleum or any fraction thereof; (10) asbestos; or (11) any other substance, chemical waste, toxicant, pollutant or contaminant regulated by any federal, state or local law, statute, rule, regulation or ordinance for the protection of health or the environment. 2 INITIALS: 8-29 ~ COUNCIL AGENDA STATEMENT Item: q Meeting Date: 10/19/2004 ITEM TITLE: RESOLUTION WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND AWARDING A PURCHASING AGREEMENT TO WEIDNER CONSULTING TO DEVELOP FIVE-YEAR STRATEGIC BUSINESS PLANS FOR THE POLICE, COMMUNITY DEVELOPMENT AND GENERAL SERVICES DEPARTMENTS AND TRANSFERRING AND APPROPRIATING FUNDS THEREFORE. SUBMITTED BY: Assistant Ci~~l1.ager Fruchter~ Chief of Polic (}../ ~ Director of Co munity Devel~1r Director of General Services City Manager j) (4/5ths Vote: Yes.!.... No _ ) REVIEWED BY: Council's approval of tonight's agenda will award a contract to Weidner Consulting Inc to develop Strategic Business Plans for the Police, Community Development and General Services departments. Weidner's Managing for Results Model is consistent with the City's Performance Management Framework previously adopted by Council. Weidner Consulting Inc has extensive experience working with public sector organizations and recently completed a Strategic Business Plan with the Fire Department. In working with Fire, Weidner gained a thorough understanding of the City's overall performance management initiative, including: Council's strategic themes, the budget process, the departmental Balanced Scorecards, and performance measurement efforts to date. By completing the three plans proposed in the attached contract the City will gain invaluable information on some of the highest priorities and far reaching programs affecting future City growth and constituent services. The plans will be available during the upcoming budget process. RECOMMENDATION: That Council waive the formal consultant selection process and award a purchasing agreement to Weidner Consulting to develop strategic business plans for the Police, Community Development and General Services departments for a price not to exceed $209,600; and that Council approve the following budget amendments: 9-1 --~ .. .. -- - _._.~-_._- Page 2,ltem: q Meeting Date: 10/19/2004 · Transfer $12,000 to the Community Development's Services and Supplies budget from Administration's Personnel budget. · Transfer $35,000 to the General Services' Services and Supplies budget from Administration's Personnel budget. · Transfer $30,000 to the General Services' Services and Supplies budget from General Services' Personnel budget. · Appropriate $28,000 to the Police Department's Services and Supplies budget from the available balance of the General Fund based upon unanticipated savings in the Public Services Building Renovation project (GG 177). · Transfer $13,000 to Administration's Services and Supplies budget from Administration's Personnel Services budget. Sufficient one-time savings have been identified in the current budget to be used for these one-time expenditures, resulting in no net impact to the General Fund. BOARDS/COMMISSIONS RECOMMENDATION: N/A DISCUSSION: At Council's direction a citywide comprehensive performance management model is being implemented. Over the past twenty-four months departments have developed mission and vision statements as well as key objectives and performance measures following the Balanced Scorecard model. Hiring Weidner Consulting Inc. to develop Strategic Business Plans for the Police, Community Development and General Services departments will complement the Balanced Scorecard work completed to date and will continue the City's efforts to . implement a citywide Performance Management Framework. The Managing for Results model used by Weidner Consulting Inc will allow the departments the flexibility to develop an operating plan that is tailored to meet their needs while at the same time providing the consistency required for citywide implementation. As was seen in the Fire Department, Weidner Consulting will provide a high quality product in a timely manner. Moving forward with this project will allow the City to capitalize on the momentum and success resulting from the work done in the Fire Department. . Some of the many benefits of using the Managing for Results Model include: . Overall high quality of Weidner Consulting Inc's staff, process and product. 9-2 Page 3,ltem: cy Meeting Date: 10/19/2004 · Consistency with the City's overall performance management framework and culture. · Establishes a high level of labor-management cooperation and communication to meet citizen needs. · Addresses unique challenges and opportunities resulting from rapid growth. · Focuses the organization on achieving results for the customer - the citizens of Chula Vista · Provides quantifiable performance data at the program level. Waiving the selection process for this project is practical for several reasons. First, Weidner Consulting successfully completed a Strategic Business Plan for the Fire Department. In working with the Fire Department the consulting team developed a thorough understanding of the City's overall performance management initiative including Council's strategic themes, the budget process, the departmental Balanced Scorecards, and performance measurement efforts to date. Second, the Managing for Results Model used by Weidner Consulting is consistent with and complementary to the City's existing performance management framework. Finally, many of the Managing for Results processes and products are copyrighted and therefore cannot be legally be duplicated by other firms. In an effort to keep the project scope manageable and to stay within existing budget allocations, staff is focusing on only three departments at this time - Police, Community Development and General Services. There is a critical need in these departments for Strategic Business Plans as discussed below. The Strategic Business Plan for the Police department is needed to address changes in the department since the development of their last strategic plan adopted by Council in November 1999. This plan had a five-year planning horizon, which has now expired - it is critical that the plan be updated as there have been significant changes in operations caused by growth and the move to the new facility, as well as significant staffing changes. The plan will also take into account changes anticipated by the General Plan update when adopted. The Strategic Business Plan in Community Development will address land use decisions, cross-jurisdictional issues, and incorporate the significant private and public input the department has received. The department has many significant projects that will impact the City's future including the development of the bay front, the focus on downtown Chula Vista and economic development. The Strategic Business Plan will assess financial opportunities and risks and provide an operational guide for the next 5 years. This is especially important as the department has experienced significant personnel changes and will need to 9-3 --_.__..~-- Page 4,ltem: o¡ Meeting Date: 10/19/2004 reexamine its organizational structure to determine the optimal structure for service delivery. The General Services department was reorganized in the last year to incorporate many of the Engineering departments functions. A Strategic Business plan will allow this new department to develop a plan for the future as a cohesive unit. In addition to these changes, the department has also implemented a new model for the construction of new buildings and parks. The Strategic Business Plan in this department will address the provision of full recreation and park services on the eastside, the continuing improvements to the westside infrastructure, and enhancing the building maintenance program for the entire City. This will be the first internal service department to complete the strategic planning process. This comprehensive approach will allow these departments that have gone through significant changes to examine their organizations from top to bottom through a highly collaborative process involving most if not all department staff. The end product will result in departments that are clearly focused on achieving their strategic objectives and have operational guides that support this effort. The completion of these plans by February will also allow the City to allocate resources to best meet City Council policy and citizen service needs and to subsequently evaluate performance to ensure services are delivered as efficiently and effectively as possible. The next phase of the implementation of the Citywide Performance Management Framework are the following components: · Complete development of departmental Balanced Score Cards - most departments have developed balanced score cards highlighting the department's key objectives and performance measures associated with each objective. These balanced score cards will also be integrated into the upcoming budget cycle. · Development of department level strategic business plans - continue progress in developing strategic business plans for the remaining City departments. These plans will serve as operational guides for departments and will include performance measures at the program level. · Implementation of pbviews software - will provide a centralized location to store and analyze performance data as well as generate performance reports at the programmatic and departmental level. · Implementation of activity based costing system - this model will distribute costs, including indirect costs, to the activity level; this allows the City to better evaluate program delivery by accurately assessing the total cost to deliver a service. It is a key component of performance management as it relates total costs to work accomplished. 9-4 Page 5,ltem: cr Meeting Date: 1 0/19/2004 . Development of program level performance reporting mechanism - in order to provide Council and citizen's with current performance data, a reporting mechanism will be developed that summarizes performance information at a programmatic level. This report will provide a summary of the performance data from the strategic business plans and pbviews, as well as cost data from the activity based costing system. . Integration with employee performance plans and evaluations - individual performance plans and evaluations will be revised so that they are integrated and aligned with the department's strategic business plan. Through implementation of the performance management framework, the strategic business plans, and future work to enhance the performance management framework, the City is developing the necessary internal capacity to sustain this performance measurement initiative on an organization wide basis. This systematic approach to performance measurement will allow the City to· become more effective, improve service delivery, better meet the needs of our community, and create greater accountability to our citizens. FISCAL IMPACT: Weidner Consulting recently completed a Strategic Business Plan for the Fire Department at a cost of $62,128. Approval of this resolution would authorize an additional $166,000 for the development of the strategic business plans and $27,000 for travel and other reimbursable costs. A 10% contingency of $16,500 is also recommended for this project. The purchasing agreement with Weidner Consulting to develop strategic business plans for the Police, Community Development and General Services departments is not to exceed $209,600. Approval of this resolution will result in no net impact to the General Fund as sufficient one-time savings have been identified in the current budget to be used for these one-time expenditures. Attachment: Agreement between the City of Chula Vista and Weidner Consulting Inc. for Strategic Business Plan Consulting Services 9-5 RESOLUTION NO. 2004- RESOLUTION WAIVING THE FORMAL CONSULTANT SELECTION PROCESS AND AWARDING A PURCHASING AGREEMENT TO WEIDNER CONSULTING TO DEVELOP FIVE-YEAR STRATEGIC BUSINESS PLANS FOR THE POLICE, COMMUNITY DEVELOPMENT AND GENERAL SERVICES DEPARTMENTS AND TRANSFERRING AND APPROPRIATING FUNDS THEREFORE WHEREAS, at Council's direction a citywide comprehensive performance management model is being implemented; and, WHEREAS, waiving the formal selection process and awarding a purchasing agreement to Weidner Consulting Inc. is practical as their Managing for Results model is consistent with the City's Performance Management Framework, the model is proprietary, and they recently completed a Strategic Business Plan for the Fire Department; and, WHEREAS, developing Strategic Business Plans for the Police, Community Development, and General Services departrnents will provide Council information on some of the highest priorities and far reaching programs affecting future City growth and constituent services; and, WHEREAS, the implementation of performance management will allow the City to become more effective, improve service delivery, better meet the needs of our community, and create greater accountability to our citizens. NOW, THEREFORE, BE IT RESOLVED that the City Council does waive the formal consultant selection process and award a purchasing agreement to Weidner Consulting to develop strategic business plans for the Police, Community Development and General Services departments for a price not to exceed $209,600. BE IT FURTHER RESOLVED that the City Council does authorize the following budget changes: · Transfer $12,000 to the Community Development's Services and Supplies budget from Administration's Personnel budget. · Transfer $35,000 to the General Services' Services and Supplies budget from Administration's Personnel budget. · Transfer $30,000 to the General Services' Services and Supplies budget from General Services' Personnel budget. · Appropriate $28,000 to the Police Department's Services and Supplies budget from the available balance of the General Fund based upon 9-6 unanticipated savings in the Public Services Building Renovation project (GG 177). . Transfer $13,000 to Administration's Services and Supplies budget from Administration's Personnel Services budget. Presented by: Approved as to form by: ~~~~ ~I^-~ ~ Ann Moore City Attorney Assis n ity Manager ---... Richard P. Emerson Chief of Police eral Services 9-7 THE A TT ACHED AGREEMENT HAS BEEN REVIEWED AND APPROVED AS TO FORM BY THE CITY ATTORNEY'S OFFICE AND WILL BE FORMALLY SIGNED UPON APPROVAL BY THE CITY COUNCIL ~,,~~~,~t\~ Ann Moore City Attorney Dated: 10/13/04 PURCHASING AGREEMENT TO WEIDNER CONSULTING, INC. 9-8 Parties and Recital Page(s) Agreement between City of Chula Vista and Weidner Consulting Inc. for Strategic Business Plan Consulting Services 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-related entity as is indicated on Exhibit A, paragraph 2, as such ("City"), whose business form is set forth on Exhibit A, paragraph 3, and the entity indicated on the attached Exhibit A, paragraph 4, as Consultant, whose business form is set forth on Exhibit A. paragraph 5, and whose place of business and telephone numbers are set forth on Exhibit A, paragraph 6 ("Consultant"), and is made with reference to the following facts: Recitals Whereas, based on an informal selection process Weidner Consulting Inc. was selected to develop Strategic Business Plans for Community Development, General Services and Police; and, Whereas, Weidner Consulting Inc. uses proprietary materials and methodologies well suited to the City's needs for the development of Strategic Business Plans; and, Whereas, Weidner Consulting Inc. has specialized in government performance accountability consulting; and, Whereas, competitive and fair rates have been negotiated with Weidner Consulting Inc.; and, Whereas, Weidner Consulting Inc. successfully completed a Strategic Business Plan for the Fire Department and City is satisfied with Weidner Consulting Inc's past work; and, Whereas, using the Weidner Consulting Inc. Managing for Results model will provide consistency of end product with work already completed and the City's Performance Management Framework; and, Page 1 9-9 --~- -- Whereas, Consultant warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services requited of Consultant to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; Page 2 9-10 Obligatory Provisions Pages 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 8,entitled " Scope of Work and Schedule", not inconsistent with the General Duties, according to, and within the time frames set forth in Exhibit A, Paragraph 8, and deliver to City such Deliverables as are identified in Exhibit A, Paragraph 8, 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 referred to in this Agreement 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 terminate this Agreement. C. Reductions in Scope of Work City may independently, or upon request from Consultant, from time to time reduce the Defined Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. D. Additional Services In addition to performing the Defined Services set forth in this Agreement, which only relates to the Police, Community Development, and General Services Departments, City may require Consultant to perform additional consulting services related to the Defined Services ("Additional Services"), and upon doing so in writing, if they are within the scope of services offered by Consultant, Consultant shall perform same on a time and materials basis at the rates set forth in the "Rate Schedule" in Exhibit A, Paragraph 11 (C), unless a separate fixed fee is otherwise agreed upon. All compensation for Additional Services shall be paid monthly as billed. Page 3 9-11 E. Standard of Care Consultant, in performing any Services under this Agreement, whether Defined Services or Additional Services, shall perform 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 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 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. (1) Certificates of Insurance. Consultant shall demonstrate proof of the coverage required by this Agreement, 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. Page 4 9-12 (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 Performance. (1) Performance Bond. In the event that Exhibit A, at Paragraph 19, indicates the need for Consultant to provide a Performance Bond (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Performance Bond"), then Consultant shall provide to the City a performance bond in the form prescribed by the City and by such sureties which are authorized to transact such business in the State of California, listed as approved by the United States Department of Treasury Circular 570, http://www.fms.treas.aov/c570, and whose underwriting limitation is sufficient to issue bonds in the amount required by the Agreement, and which also satisfy the requirements stated in Section 995.660 of the Code of Civil Procedure, except as provided otherwise by laws or regulations. All bonds signed by an agent must be accompanied by a certified copy of such agent's authority to act. Surety companies must be duly licensed or authorized in the jurisdiction in which the Project is located to issue bonds for the limits so required. Form must be satisfactory to the Risk Manager or City Attomey which amount is indicated in the space adjacent to the term, "Performance 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 submitting to the bank a letter, signed by the City Manager, stating that the Consultant is in breach of the terms of this Agreement. The letter of credit shall be issued by a bank, and be in a form and amount satisfactory to the Risk Manager or City Attomey which amount is indicated in the space adjacent to the term, "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 Performance Bond or a Letter of Credit Page 5 9-13 · (indicated by a check mark in the parenthetical space immediately preceding the subparagraph entitled "Other Security"), then Consultant shall provide to the City such other security therein listed in a form and amount satisfactory to the Risk Manager or City Attorney. 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 Defined Services and Schedule contained in this Agreement, and to provide direction and guidance ·to achieve the objectives of this Agreement. The City shall permit access to its office facilities, files and records by Consultant throughout the term of the Agreement. In addition thereto, City agrees to provide the information, 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 7 days after authorization to proceed, shall constitute a basis for the justifiable delay in the Consultant's performance 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, on the day of the period indicated in Exhibit A, Paragraph 18, City shall compensate Consultant for all services rendered by Consultant according to the terms and conditions set forth in Exhibit A, Paragraph 11, adjacent to the goveming compensation relationship indicated by a "checkmark" next to the appropriate arrangement, subject to the requirements for retention set forth in paragraph 19 of Exhibit A, and shall compensate Consultant for out of pocket expenses as provided in Exhibit A, Paragraph 12. All billings submitted by Consultant shall contain sufficient information as to the propriety of the billing to permit 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. Page 6 9-14 3. Administration of Contract Each party designates the individuals ("Contract Administrators") indicated on Exhibit A, Paragraph 13, as said party's contract administrator who is authorized by said party to represent Party in the routine administration of this Agreement. 4. Term. This Agreement shall terminate when the Parties have complied with all executory provisions of the Agreement. 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 performance. 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 control, other than delays caused by the City, shall be requested in writing to the City's Contract 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. 6. Financial I nterests of Consultant A. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 15, as an "FPPC filer", Consultant is deemed to be a "Consultant" for the purposes of the Political Reform Act conflict of interest and disclosure provisions, and shall report economic interests to the Page 7 9-15 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 Page 8 9-16 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. Consultant agrees that Consultant associates shall not acquire any such prohibited interest within the Term of this Agreement, or for 12 months after the expiration of this Agreement, except with the written permission 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 permission of City. 7. Hold Harmless Consultant shall defend, indemnify, protect 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 limitation attorneys fees) arising out of or alleged by third parties to be the result of the negligent acts. errors or omissions or the willful misconduct of the Consultant, and Consultant's employees, subcontractors or other persons, agencies or firms for whom Consultant is legally responsible in connection with the execution of the work covered by this Agreement, except only for those claims, damages, liability, costs and expenses (including without limitations, attorneys fees) arising from the sole negligence or sole willful misconduct of the City, its officers, employees. Also covered is liability arising from, connected with, caused by or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. With respect to losses arising from Consultant's professional errors or omissions, Consultant shall defend, indemnify, protect 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 limitation attorneys fees) except for those claims arising from the negligence or willful misconduct of 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. Consultant's obligations Page 9 9-17 under this Section shall not be limited by any prior or subsequent declaration by the Consultant. Consultant's obligations under this Section shall survive the termination of this Agreement. For those professionals who are required to be licensed by the state (e.g. architects and engineers), the following indemnification provisions should be utilized: 1. Indemnification and Hold Harmless Agreement. With respect to any liability, including but not limited to claims asserted or costs, losses, attomey fees, or payments for injury to any person or property caused or claimed to be caused by the acts or omissions of the Consultant, or Consultant's employees, agents, and officers, arising out of any services performed involving this project, except liability for Professional Services covered under Section X.2, the Consultant agrees to defend, indemnify, protect, and hold harmless the City, its agents, officers, or employees from and against all liability. Also covered is liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City, its agents, officers, or employees which may be in combination with the active or passive negligent acts or omissions of the Consultant, its employees, agents or officers, or any third party. The Consultant's duty to indemnify, protect and hold harmless shall not include any claims or liabilities arising from the sole negligence or sole willful misconduct of the City, its agents, officers or employees. This section in no way alters, affects or modifies the Consultant's obligation and duties under Section Exhibit A to this Agreement. 2. Indemnification for Professional Services. As to the Consultant's professional obligation, work or services involving this Project, the Consultant agrees to indemnify, defend and hold harmless the City, its agents, officers and employees from and against any and all liability, claims, costs, and damages, including but not limited to, attorneys fees, losses or payments for injury to any person or property, caused directly or indirectly from the negligent acts, errors or omissions of the Consultant or Consultant's employees, agents or officers; provided, however, that the Consultant's duty to indemnify shall not include any claims or liability arising from the negligence or willful misconduct of the City, its agents, officers and employees. 8. Termination of Agreement for Cause If, through any cause, Consultant fails to fulfill in a timely and proper manner Consultant's obligations under this Agreement, or if Consultant violates 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 Page 10 9-18 specifying the effective date of the termination at least five (5) days before the effective date of such termination. In that event, all finished or unfinished documents, data, studies, surveys, drawings, maps, reports and other materials prepared by Consultant shall, at the option of the City, become the property of the City, and Consultant shall be entitled to receive just and equitable compensation 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 under this Agreement, and less any damages caused to City by Consultant's breach. Notwithstanding the foregoing, prior to effecting a termination pursuant to this paragraph 8, the City shall provide Consultant with written notice of any alleged breach in sufficiently reasonable detail to allow Consultant an opportunity to cure such alleged breach. Consultant shall have 7 days to cure the alleged breach or if the breach is incapable of cure within 7 days, such reasonable time necessary to cure such breach. 9. Errors and Omissions In the event the City Administrator determines the Consultants' negligence, errors, or omissions in the performance of work under this Agreement has resulted in expense to City greater than would have resulted if there were no such negligence, errors, omissions, Consultant shall reimburse City for any additional expenses incurred by the City. Nothing in this paragraph is intended to limit City's rights under other provisions of this Agreement. 10. Termination of Agreement for Convenience of City City may terminate this Agreement at any time and for any reason, by giving specific written notice to Consultant of such termination and specifying the effective date of the termination, at least thirty (30) days before the effective date of such termination. In that event, all finished and unfinished documents and other materials described above shall, at the option of the City, become City's sole and exclusive property. If the Agreement is terminated by City as provided in this paragraph, Consultant shall be entitled to receive just and equitable compensation for any satisfactory work completed on such documents and other materials to the effective date of such termination. Consultant expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth in this Agreement. 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 assignment or novation), without prior written consent of City. Page 11 9-19 City consents to the assignment of the portions of the Defined Services identified in Exhibit A, Paragraph 17 to the subconsultants identified in Paragraph 17 as "Permitted Subconsultants", 12. Intellectual Property: The Weidner methodology used to develop the Strategic Business Plans is proprietary intellectual property, will be licensed on a department-by-department basis, and may not be used by or shared with any City department or employee whose department has not purchased a license to use the Weidner methodology; nor may the Weidner methodology be disclosed to any party not an organization of or employee of the City of Chula Vista, California. This does not preclude the City of Chula Vista from developing mission statements, vision statements, strategic plans, or performance measures utilizing methodologies similar to the Weidner methodology, such as the Balanced Scorecard, in other City departments. The contract shall constitute a license to the City departments to utilize Weidner's methodology as set out herein. Specifically, the contracting City departments shall be given access to the methodology and the written, copyrighted materials, specifically: (1) the Managing for Results Template; (2) the Managing for Results Cycle; (3) the Mission Template; (4) the Strategic Business Plan Element Definitions; and (5) the Strategic Business Plan Flowchart (collectively the "Written Materials") for use in creating the Strategic Business Plans. So long as the contracting City department does not allow non-licensed individuals to participate or otherwise have access to the Weidner methodology and the Written Materials, the contracting City department has a perpetual, limited-use license for the Weidner methodology and the licensed Written Materials in order to periodically update and modify as needed the written deliverables hereunder. This will confirm that this contract is providing a license for the previously mentioned methodology and written copyrighted materials to the Police Department, General Services Department, and Community Development Department. Deliverables created pursuant to this contract will be the sole property of the City of Chula Vista. Any other materials developed by Weidner during the provision of services under contracts with the City Of Chula Vista are not considered 'works for hire' and shall remain the sole property of Weidner. Materials and methodologies owned by Weidner prior to the contracts between Weidner and Chula Vista will continue to remain the property of Weidner. Weidner will be provided access to electronic copies of the Strategic Business Plans developed by the departments on an ongoing basis during and beyond the contract period, and will have the right to share copies of the Strategic Business Plans with other governmental jurisdictions as examples of work completed upon approval of the City. Page 12 9-20 13. Ownership, Publication, Reproduction and Use of Material All reports, studies, information, data, statistics, forms, designs, plans, procedures, systems and any other materials or properties produced under this Agreement shall be the sole and exclusive property of City. No such materials or properties produced in whole or in part under this Agreement shall be subject to private use, copyrights or patent rights by Consultant in the United States or in any other country without the express written consent of City. City shall have unrestricted authority to publish, disclose (except as may be limited by the provisions of the Public Records Act), distribute, and otherwise use, copyright or patent, in whole or in part, any such reports, studies, data, statistics, forms or other materials or properties produced under this Agreement. 14. Independent Contractor City is interested only in the results obtained and Consultant shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Consultant's work products. Consultant and any of the Consultant's agents, employees or representatives are, for all purposes under this Agreement, an independent contractor 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 pay, retirement benefits, worker's compensation benefits, injury leave or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and Consultant shall be solely responsible for the payment of same and shall hold the City harmless with regard to taxes or benefits. 15. Administrative Claims Requirements and Procedures 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 in this Agreement, 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. Page 13 9-21 --------..---".--. 16. 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. 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 and/or their principals is/are licensed with the State of Califomia 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 in this Agreement 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 of the Agreement. Neither this Agreement nor any provision of the Agreement 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 to this Agreement warrants and represents to the other Party that it has legal authority and capacity and direction from its principal to enter into Page 1'1 9-22 this Agreement, and that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. F. Governing LawNenue This Agreement shall be govemed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance under this Agreement, shall be the City of Chula Vista. [end of page. next page is signature page.] Page 15 9-23 Oct 15 04 02:54p p.2 Signature Page to Agreement between City of Chula Vista and Weidner Consulting Inc. To develop Strategic Business Plans for the Police, Community Development and General Services Departments IN WITNESS WHEREOF, City and Consultant have executed this Agreement indicating that they have read and understood same, and indicate their full and complete consent to its terms: Dated: ,200_ City of Chula Vista by: Stephen Padilla, Mayor Attest: Susan Bigelow, City Clerk Approved as to form: Ann Moore, City Attorney Dated: Weidner Consulting Inc ~./ ::7::- /' F -þ-'-- By' Þ" / -; '/" ~" -> Marv Weídn~r, - ..-- President Weidner Consulting Inc. Exhibit List to Agreement (x) Exhibit A. Page 16 9-24 Page 17 9-25 Exhibit A to Agreement between City of Chula Vista and Weidner Consulting Inc. 1. Effective Date of Agreement: October 19, 2004 2. City-Related Entity: (X) City of Chula Vista, a municipal chartered corporation of the State of California ( ) Redevelopment Agency of the City of Chula Vista, a political subdivision of the State of California () Industrial Development Authority of the City of Chula Vista, a () Other: , a [insert bU$iness form] ("City") 3. Place of Business for City: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 4. Consultant: 5. Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (x) Corporation Page 18 9-26 . 6. Place of Business, Telephone and Fax Number of Consultant: Weidner Consulting Inc 611 South Congress Avenue, Suite 430 Austin, Texas 78704 Voice Phone (512) 347-7054 Fax Phone (512) 347-7993 7. General Duties: Consultant will develop Strategic Business Plans for the Police, Community Development, and General Services Departments. The Strategic Business Plans will include the following: . Assessment of Operation Issues: Each Department's operational challenges and opportunities will be documented so the Strategic Business Plans will be aligned to influence those issues. a Aliqnment of Strateqic Plans: Each department's Strategic Business Plan will be reviewed to assure the plan is structured by programs, and performance measures developed, to support the direction provided in the plan. a Aliqnment with Balanced Scorecard (BSC) Goals: Each Department's Balanced Scorecard will be reviewed in light of the strategic plan so that the Strategic Business Plan is structured to achieve the BSC goals and measures, and to ensure that the BSC measures are incorporated into the Business Plan as appropriate. a Aliqnment with Citv Council's Strateqic Themes: Each Department's Strategic Business Plan will be reviewed in light of City Council's strategic themes to ensure that each Department's strategic and operational goals are in alignment with citywide priorities. . Strategic Business Plans will structure and define performance information needed by the City to produce a program based Performance Report for each department. a Strategic Business Plans will structure and define service information in a manner consistent with the City's existing Master Fee Schedule and supportive of the City's planned Activity Based Costing model. Page 19 9-27 8. Scope of Work and Schedule: A. Detailed Scope of Work: 1. Task 1 (Facilitation of Assessment of the Future Workshops) Consultant shall facilitate a series of half day retreats with staff from the Police and General Services Departments to develop an Assessment of the Future, comprised of critical issues and trends on the horizon which, if they continue unabated, will have a significant impact on the community of Chula Vista. These retreats shall, at a minimum, involve a large representative group from the Police and General Services Departments. Similar retreats were recently conducted internally for the Community Development Department and will be incorporated into the planning process without the need to duplicate this effort. In addition, the relatively small size of the Community Development department will allow for input by most, if not all, staff members without a formal retreat. 2. Task 2 (Facilitation of Strateqv Development Retreats) Consultant shall facilitate a series of multi-day retreats with each department during which the strategic portion of their respective plans will be developed. During the retreats each department will develop: i. Concise issue statements that describe the critical issues that will impact each department and their customers over the next two to five years. ii. A limited set of strategic goals expressed in clear, concrete terms that identify the measurable results that each department must accomplish over the next two to five years in order to address the issue statements. Consultant shall utilize information developed during previous Balanced Scorecard objective setting workshops whenever possible in order to minimize duplication of effort. iii. Concise mission statements for each department. Consultant shall utilize information developed during previous mission and vision workshops whenever possible in order to minimize duplication of effort. Page 20 9-28 ._-_._~--_._-_..._-- -- --- 3. Task 3 (Facilitation of Purpose Statement and Performance Measure Sessions): Consultant shall facilitate a series of purpose statement and performance measure (PSPM) sessions to develop the operational portion of the plans, incorporating every key business function, every service delivered and every program in the department. For each program the following will be developed: i. A concise purpose statement that describes the results that customers can expect to see delivered, ii. An inventory of all the services or deliverables provided to the customer, iii. An operational level organization of services into programs, defined in terms of results for customers, iv. A small, manageable set of clear, understandable performance measures for each program, to which program staff intend to hold themselves mutually accountable, and v. A high level organization of departmental programs into lines of business, defined in terms of results for customers, providing an executive strategic level overview of performance. 4. Task 4 (Facilitation of Final Retreats): Consultant shall facilitate a final series of workshops with City staff to ensure alignment of strategic goals, services, programs, and performance measures as articulated within the Strategic Business Plans with citywide objectives and City Council's strategic themes. B. Date for Commencement of Consultant Services: (x) Same as Effective Date of Agreement ( ) Other: Page 21 , 9-29 C. Dates or Time Limits for Delivery of Deliverables: Deliverable NO.1: Task 1 - complete facilitation of Assessment of the Future Workshops for each Department and provide a report summarizing the results of the workshops. (8.A.1) Department Due Date Police 12/24/2004 Community Development n.a. General Services 11/26/2004 Deliverable NO.2: Task 2 - complete facilitation of Strategy Development Workshops for each Department and provide a report summarizing the results of the workshops. (8.A.2) Department Due Date Police 1/21/2005 Community DeveloDment 12/17/2004 General Services 12/17/2004 Deliverable NO.3: Task 3 - complete facilitation of PSPM sessions for each Department and provide a report summarizing the results of the sessions. (8.A.3) Department Due Date Police 2/11/2005 Community DeveloDment 1/21/2005 General Services 1/21/2005 Deliverable NO.4: Task 4 - complete facilitation of final retreat and provide a report summarizing the results of the sessions. (8.A.3) Department Due Date Police 3/5/2005 Community Development 2/18/2005 General Services 2/18/2005 D. Date for completion of all Consultant services: 3/512005 Page 22 9-30 9. Insurance Requirements: (x) Worker's Compensation Insurance: Statutory . (x) Employer's Liability Insurance coverage: $1,000,000. (x) Commercial General Liability Insurance: $1,000,000. (x) Automobile Liability Insurance: $1,000,000. (x) Errors and Omissions insurance: None Required () Errors and Omissions Insurance: $250,000 (not included in Commercial General Liability coverage). 10. Materials Required to be Supplied by City to Consultant All project related information including prior departmental strategic plans, Balanced Scorecards, budgets, staffing levels, and general background will be provided by the City. The City will also be responsible for all logistics related to the Retreats. This includes, but is not limited to LCD projector, screen, ample easels and 3M Post-It Flip Charts for all retreats, flip chart markers, refreshments if desired, etc. Weidner will provide its own laptop computers for orientation and retreat sessions. Departments will provide a staff person to record what is written on flip charts, and this will be entered into Weidner's "Written Materials." Because the proprietary Weidner methodology will be utilized during the development of the Strategic Business Plans, no third-party individuals or entities contracted by the City, whether employed by private for-profit or by not-for-profit organizations, may attend Pre- Retreat Sessions, or Strategic Business Planning Retreats. Department staff will record the elements of the Strategic Business Plan developed during the Retreats on laptop or other computers using the copyrighted "Written Materials." Transcriptions of the Strategic Business Plan elements developed during the Retreats will be made available electronically to Weidner project staff the same of next day after the Retreat. 11. Compensation: A. (x) Single Fixed Fee Arrangement. For performance of all of the Defined Services by Consultant as required by this Agreement, City shall pay a single fixed fee in the amounts and at the times or milestones or for the Deliverables set forth below: Single Fixed Fee Amount $166,000 payable as follows and referenced by task identified in paragraph 8A above: Page 23 9-31 Amount Deliverable Police Community Dev. General Services Task 1 $15,000 n.a. $15,000 Task 2 $15,000 $10,000 $15,000 Task 3 $25,000 $18,000 $25,000 Task 4 $10,000 $8,000 $10,000 TOTAL $65,000 $36,000 $65,000 ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractòr. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. B. ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the Defined Services by Consultant as are separately identified below, City shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones or Deliverables set forth. Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless City shall have issued a notice to proceed to Consultant as to said Phase. Page 24 9-32 Phase Fee for Said Phase 1. $ 2. $ 3. $ ( ) 1. Interim Monthly Advances. The City shall make interim monthly advances against the compensation due for each phase on a percentage of completion basis for each given phase such that, at the end of each phase only the compensation for that phase has been paid. Any payments made hereunder shall be considered as interest free loans which must be returned to the City if the Phase is not satisfactorily completed. If the Phase is satisfactorily completed, the City shall receive credit against the compensation due for that phase. The retention amount or percentage set forth in Paragraph 19 is to be applied to each interim payment such that, at the end of the phase, the full retention has been held back from the compensation due for that phase. Percentage of completion of a phase shall be assessed in the sole and unfettered discretion by the Contracts Administrator designated herein by the City, or such other person as the City Manager shall designate, but only upon such proof demanded by the City that has been provided, but in no event shall such interim advance payment be made unless the Contractor shall have represented in writing that said percentage of completion of the phase has been performed by the Contractor. The practice of making interim monthly advances shall not convert this agreement to a time and materials basis of payment. C. () Hourly Rate Arrangement For performance of the Defined Services by Consultant as herein required, City shall pay Consultant for the productive hours of time spent by Consultant in the performance of said Services, at the rates or amounts set forth in the Rate Schedule hereinbelow according to the following terms and conditions: (1 ) () Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the Defined Services herein Page 25 9-33 required of Consultant for $ including all Materials, and other "reimbursables" ("Maximum Compensation"). (2) ( ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee Hourly of Consultant Name Rate All Weidner Consultants $250/hr ( ) Hourly rates may increase by 6% for services rendered after [month], 19 ,if delay in providing services is caused by City. 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: () None, the compensation includes all costs. Cost or Rate () Reports, not to exceed $ () Copies, not to exceed $ (x) Travel, not to exceed $27,000 : () Printing, not to exceed $ Page 26 9-34 () Postage, not to exceed $ () Delivery, not to exceed $ () Long Distance Telephone Charges, not to exceed $ () Other Actual Identifiable Direct Costs: , not to exceed $ , not to exceed $ 13. Contract Administrators: City: Ed Van Eenoo, Assistant Director of Budget and Analysis, City Manager's Office, City of Chula Vista, 276 FoUrth Avenue, Chula Vista, CA 91910, (619) 409 _ 5475. Consultant: Marv Weidner, President Weidner Consulting Inc, 611 South Congress Avenue, Suite 430, Austin, Texas 78704, (512) 347-7054. 14. Liquidated Damages Rate: ( ) $ per day. ( ) Other: 15. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (x) Not Applicable. Not an FPPC Filer. ( ) FPPC Filer ( ) Category No.1. Investments and sources of income. ( ) Category NO.2. Interests in real property. ( ) Category No.3. Investments, interest in real property and sources of income subject to the regulatory, permit or licensing authority of the department. ( ) Category No.4. Investments in business entities and sources of income which engage in land development, construction or the acquisition or sale of real property. Page 27 9-35 ( ) Category NO.5. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the City of Chula Vista (Redevelopment Agency) to provide services, supplies, materials, machinery or equipment. ( ) Category No.6. Investments in business entities and sources of income of the type which, within the past two years, have contracted with the designated employee's department to provide services, supplies, materials, machinery or equipment. ( ) Category No.7. Business positions. ( ) List "Consultant Associates" interests in real property within 2 radial miles of Project Property, if any: 16. ( ) Consultant is Real Estate Broker and/or Salesman 17. Permitted Subconsultants: Jim Chrisinqer Kathv Keelev 18. Bill Processing: A) Consultant's Billing to be submitted for the following period of time: ( ) Monthly ( ) Quarterly (x) Other: Upon completion of task as desiqnated in paraqraph 8A B) Day of the Period for submission of Consultant's Billing: ( ) First of the Month ( ) 15th Day of each Month ( ) End of the Month (x) Other: Upon completion of task as desiqnated in paraqraph 8A Page 28 9-36 C) City's Account Number: Police: 14100-6301 Community Development: 11100-6301 General Services: 10100-6301 D) Invoice Payment: City shall make payment within 30 days of receipt of accurate and complete invoice upon satisfactory completion of services billed. 19. Security for Performance ( ) Performance Bond, $ ( ) Letter of Credit, $ ( ) Other Security: Type: Amount: $ ( ) Retention. If this space is checked, then notwithstanding other provisions to the contrary requiring the payment of compensation to the Consultant sooner, the City shall be entitled to retain, at their option, either the following "Retention Percentage" or "Retention Amount" until the City determines that the Retention Release Event, listed below, has occurred: ( ) Retention Percentage: _ % ( ) Retention Amount: $ , Retention Release Event: ( ) Completion of All Consultant Services ( ) Other: , Page 29 , 9-37