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Agenda Packet 1997/04/22
'" declare wndar penalty of perju~ t~at , am loyed by the City of Chula V:s.a In tho :!ïce of the City Clerk and ti,at ; pos .od Tuesday, April 22, 1997 this Agenda/Notice on the Bulletin B~ard at Council Chambers the Public rvices Building an~¥" 6:00 p.m. Public Services Building DATED . /7 SIGNED Regular Meetin~ of the City of Chula Vista City Council CALL TO ORDER 1. ROLL CALL: Councilmembers Moot _. Padilla _, Rindone _. Salas _' and Mayor Horton _. 2. PLEDGE OF ALLEGIANCE TO THE FLAG. MOMENT OF SILENCE 3. APPROVAL OF MINUTES: April 10, 1997 (Special Meeting/Worksession) and April 15, 1997 (Regular Meeting). 4. SPECIAL ORDERS OF THE DAY: None. CONSENT CALENDAR (Items 5 through /3) The staff recommendations regarding the following items listed under the Consent Calendar will be enacted by the Council by one motion without discussion unless a Councilmember, a member of the public, or City staff requests that the item be pulled 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 Board and Commission Recommendations and Action Items. Items pulled by the public will be the first items of business. 5. WRITTEN COMMUNICATIONS: a. Letter from the City Attorney stating that to the best of his knowledge from observance of actions taken in Closed Session on 4/15/97 in which the City Attorney participated, that there were no reportable actions which are required under the Brown Act to be reported. It is recommended that the letter be received and filed. 6. RESOLUTION 18633 AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT WITH MUNICIPAL RESOURCE CONSULTANTS FOR THE PURPOSE OF DETERMINING IF THE CITY IS ENTITLED TO ADDITIONAL PENSION SURPLUSES TO OFFSET EMPLOYEE BENEFIT COSTS - Approval is sought for a fee-contingent contract with Municipal Resource Consultants to conduct an analysis of our pension accounts to determine if PERS has undervalued OUf current and prior surpluses. and to seek an extension of the 6/30/97 deadline so that any newly identified surpluses may be used to offset pension costs. Staff recommends approval of the resolution. (Director of Finance) \_U_____ __ ___u__ __________, -. - --- - . ~ - ~ ~ --.,- Agenda -2- April 22. 1997 7. RESOLUTION 18634 IMPLEMENTING PRE-TAX PAYROLL DEDUCTION PLAN FOR CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (CALPERS) SERVICE CREDIT PURCHASES (CONTRmUTION CODE 14) - Effective 7/1/96, the CalPERS provides qualified members the option to elect the pre-tax payroll deduction plan for their service credit purchases (i.e. redeposit, service prior to membership, military, etc.). In order to extend the benefit of this pre-tax option to its employees, the City must submit the subject resolution to CaIPERS. Staff recommends approval of the resolution. (Director of Human Resources) 8. RESOLUTION 18635 APPROPRIATING $156,000 FROM THE UNAPPROPRIATED FUND BALANCE OF THE PUBLIC LIABILITY TRUST FUND FOR SETTLEMENT OF CLAIMS AS MAY BE AUTHORIZED BY CITY COUNCIL THROUGH JUNE 30, 1997 - This appropriation will increase the Insurance budget for emergency unanticipated settlement payments made on behalf of the Public Liability Fund and will provide for claims expenses that may be authorized by Council through the end of the fiscal year. Staff recommends approval of the resolution. (Director of Human Resources) 4/5th's vote required. 9. RESOLUTION 18636 APPROPRIATING UNANTICIPATED INSURANCE DIVIDENDS RECEIVED TO THE WORKERS COMPENSATION TRUST FUND FOR CLAIMS RESERVE FUNDING PURPOSES - On 11/12/96, the City received an insurance dividend check in the amount of $105.182 from the San Diego Pooled Insurance Program Authority. These dividends were unanticipated and are insurance related. This resolution will appropriate the dividends received to the Workers Compensation Insurance Trust Fund to partially fund the required claims reserve. Staff recommends approval of the resolution. (Director of Human Resources) 4/5th's vote required. lOA RESOLUTION 18637 APPROVING A MEMORANDUM OF UNDERST ANDING (MOU) WITH THE SAN DIEGO ECONOMIC DEVELOPMENT CORPORATION FOR COOPERATIVE ECONOMIC DEVELOPMENT EFFORTS - Council appropriated funding for the San Diego Economic Development Corporation (SDEDC) and South San Diego County Economic Development Council (SCEDC) in fiscal year (FY) 1995/96 and FY 1996/97. The MOUs with SDEDC and SCEDC were approved by Council in FY 1995/96. While Council appropriated current year funds without stipulating a required renewal of the MOUs, SDEDC, SCEDC and staff have continued to operate per the terms of the FY 1995/96 MOUs. Staff is requesting that Council formally authorize the Mayor to sign the renewed FY 1996/97 MOU which contains no substantive changes. Staff recommends approval of the resolutions. (Director of Community Development) B. RESOLUTION 18638 APPROVING A MEMORANDUM OF UNDERSTANDING WITH THE SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL FOR COOPERATIVE ECONOMIC DEVELOPMENT EFFORTS -.,.,-.... _.~-~ -~-"._-----"---".. ..-- .-..._-"-~_.._--- Agenda -3- April 22. 1997 11. RESOLUTION 18639 APPROVING A THREE PARTY AGREEMENT WITH BERRYMAN & HENIGAR, AND VILLAGE DEVELOPMENT, L.L.C. TO PROVIDE ASSESSMENT ENGINEERING SERVICES FOR THE FORMATION OF OPEN SPACE DISTRICTS IN THE OT A Y RANCH AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT - On 11/19/96, Council approved the Tentative Map for portions of the Otay Ranch SPA One, Tract 96- 04. The conditions of approval of said map require the formation. prior to approval of the first final map of: (1) the SPA One open space district, and (2) Otay Ranch Preserve maintenance district. Due to the magnitude of the proposed districts, and the requirements of the recently enacted Proposition 218, staff considers it necessary to retain consultants specializing in public financing to conduct the proceedings. Staff recommends approval of the resolution. (Director of Public Works) 12. RESOLUTION 18640 APPROVING A TENTATIVE AGREEMENT WITH SOUTHWESTERN COLLEGE TO EXCHANGE THE FIRE STATION NUMBER 4 SITE AND OTHER MISCELLANEOUS WORK FOR RIGHT-OF-WAY DEDICATION FOR THE CONSTRUCTION OF THE OTAY LAKES ROAD DUAL LEFT TURN LANES PROJECT (STM-322) AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE FINAL AGREEMENT THEREOF ON BEHALF OF THE CITY - The fiscal year 1996/97 Capital Improvement Budget contains a project to provide dual left turn lanes on Otay Lakes Road (north and south bound approaches) at East "H" Street and provide an additional through lane in each direction. To construct the project, it is necessary to obtain right-of-way from both the Sweetwater Union High School District (in front of Bonita Vista High School) and Southwestern College (in front of their vacant lot at the southwest corner of the intersection). Staff recommends approval of the resolution. (Director of Public Works) 13. RESOLUTION 18641 ACCEPTING BIDS AND AWARDING CONTRACT FOR THE PURCHASE OF ONE 12 CUBIC YARD DUMP TRUCK; AND APPROPRIATING $43,061 FROM THE EQUIPMENT REPLACEMENT FUND FOR TillS PURPOSE - On 2/12/97, bids for the purchase of one 12 Cubic Yard Dump Truck were opened. Sixteen prospective bidders were contacted, including local bidders. Five bidders responded, which did not include any local bidders. The lowest responsible bidder was DiaD International with a net total price of $86,699.96. Staff recommends approval of the resolution awarding the contract to DiaD International Truck. (Director of Public Works and Director of Finance) 4/Sth's vote required. * * * END OF CONSENT CALENDAR * * * ORAL COMMUNICATIONS This is an opportunity for the general public to address the City Council on any subject matter within the Council'sjurisdiction that is not an item on this agenda for public discussion. (State law, however, generally prohibits the City Council from taking action on any issues not included on the posted agenda.) If you wish to address the Council on such a subject, please complete the "Request to Speak Under Oral Communications Form" available in the lobby and submit it to the City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes and follow up action. .~_.._.- ._-_.~ .··o__.___._._________ Agenda -4- April 22, 1997 PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak to any item, please fill out the "Request to Speak Form" available in the lobby and submit it to the City Clerk prior to the meeting. 14. PUBLIC HEARING GPA 97-02/PCZ 97-02 AND PCM 97-18 REQUEST TO (1) AMEND THE GENERAL PLAN FROM "PROFESSIONAL AND ADMINISTRATIVE COMMERCIAL" TO "RETAIL COMMERCIAL"; (2) REZONING FROM C-V-P (VISITOR COMMERCIAL SUBJECT TO PRECISE PLAN) TO C- C (CENTRAL COMMERCIAL) FOR .93 ACRES OF LAND LOCATED AT SOUTHEAST QUADRANT OF "H" STREET AND 1-5 AND (3) ADOPTION OF THE "GATEWAY PLAZA SPECIFIC PLAN" - BARON LAND LLC/CITY OF CHULA VISTA - This is a request for General Plan Amendment/Rezone and Specific Plan in order to change allowable land uses for a project site located at 720 and 730 'H' Street. Due to concerns of adjacent mobilehome park residents and to maintain previous guidelines aimed at enhancing the City's gateway, staff further recommends adoption of a Specific Plan to place restrictions on land uses allowed under the proposed C-C zone. Staff recommends Council place the ordinance on first reading and approve the resolution. (Director of Planning) A. ORDINANCE 2707 AMENDING THE ZONING MAP OR MAPS ESTABLISHED BY SECTION 19.18.010 OF THE MUNICIPAL CODE REZONING .93 ACRES LOCATED AT THE SOUTHEAST QUADRANT OF 1-5 AND "H" STREET TO C-C (first reading) B. RESOLUTION 18642 AMENDING THE GENERAL PLAN AND ADOPTING A SPECIFIC PLAN KNOWN AS GATEWAY PLAZA GOVERNING THE LAND USES OF .93 ACRES AT THE SOUTHEAST QUADRANT OF "H" STREET AND 1-5 BOARD AND COMMISSION RECOMMENDATIONS This is the time the City Council will consider items which have been forwarded to them for consideration by one of the City's Boards, Commissions, and/or Committees. None submitted. ACTION ITEMS The items listed in this section of the agenda are expected to elicit substantial discussions and deliberations by the Council, staff, or members of the general public. The items will be considered individually by the Council and staff recommendations may in certain cases be presented in the alternative. Those who wish to speak, please fill out a "Request to Speak" form available in the lobby and submit it to the City Clerk prior to the meeting. l5.A. RESOLUTION 18643 AUTHORIZING AND APPROVING THE BORROWING OF FUNDS FOR FISCAL YEAR 1997/98; THE ISSUANCE AND SALE OF A 1997/98 TAX AND REVENUE ANTICIPATION NOTE THEREFOR AND PARTICIPATION IN THE CALIFORNIA COMMUNITIES CASH FLOW FINANCING PROGRAM - In order to address cash shortfalls that are projected to occur in the General Fund during fiscal year 1997/98, it is recommended that the City again take advantage of the opportunity to borrow money on a short-term basis at the lowest cost by issuing a Tax and Revenue Anticipation Note through the pooled financing program sponsored by the League of California Cities. Such a borrowing is recommended as an alternative to borrowing from other City funds in order to cover the temporary cash shortfalls that occur in the General Fund during the year due to the cyclical nature of some of our major revenue sources. Staff recommends approval of the resolutions. (Director of Finance) ....·___m..··_......._. _._. Agenda -5- April 22, 1997 B. RESOLUTION 18644 DIRECTING THE CITY MANAGER TO INCLUDE IN THE FISCAL YEAR 1997/98 PROPOSED BUDGET APPROPRIATIONS OF $409,800 FOR TAX AND REVENUE ANTICIPATION NOTE PROJECTED INTEREST AND ISSUANCE COSTS AND ESTIMATED INTEREST REVENUES OF $409,800 FROM INVESTMENT OF THE NOTE PROCEEDS 16. RESOLUTION 18645 ACCEPTING PETITION FOR FORMATION OF A SPECIAL ASSESSMENT DISTRICT ON THE 400 BLOCK OF OXFORD STREET FOR THE CONSTRUCTION OF STREET IMPROVEMENTS BETWEEN FOURTH AVENUE AND FIFTH AVENUE (CIP NUMBER 0735-10- STL229) - The City Engineer has received sufficient ballots in favor of commencing a construction project for the missing street improvements. The ballots were signed by a majority of the property owners along the frontage of the 400 block of Oxford Street between Fourth Avenue and Fifth Avenue. These property owners are requesting that a special assessment district for the construction of improvements to Oxford Street be commenced. Staff recommends approval of the resolution. (Director of Public Works) 17. REPORT SUPPLEMENTAL TO MARCH 25,1997 BECA AGENDA STATEMENT REGARDING PROPOSED AMENDED CONTRACT WITH SOUTHWESTERN COLLEGE RESOLUTION 18616 APPROVING AMENDED AND RESTATED AGREEMENT WITH SOUTHWESTERN COMMUNITY COLLEGE DISTRICT FOR CONSULTING SERVICES TO BORDER ENVIRONMENTAL COMMERCE ALLIANCE (BECA) INCUBATOR TENANTS - This agreement changes the Southwestern contract by: (1) reducing the scope of the contract to focus on incubator tenant assistance exclusively; (2) dissolving the Border Environmental Technology Research Center (BETRC) program component and eliminating the BETRC Manager, Cross Border Marketing Specialist, Project Clerk, and Environmental Management Specialist positions; and (3) amending the Southwestern budget to $165,000 for the remainder of the contract, 4/30/97 through 4/30/98. Staff recommends approval of the resolution. (Director of Community Development) Continued from the meeting of 4/8/97. ITEMS PULLED FROM THE CONSENT CALENDAR This is the time the City Council will discuss items which have been removed from the Consent Calendar. Agenda items pulled at the request of the public will be considered prior to those pulled by Councilmembers. OTHER BUSINESS 18. CITY MANAGER'S REPORT(S) a. Scheduling of meetings. _.-...._._,..,_.._...~.--_.,,,._._---- Agenda -6- April 22. 1997 19. MAYOR'S REPORTCS) a. Ratification of appointments: Economic Development Commission (Ex-Officio) . Russ Hall (to fill vacancy created by Commissioner Patrick whose term expires June 30, 2000); and Charter Review Commission - Barbara McAllister (to fill vacancy created by Commissioner Lawry whose term expires June 30, 1997). 20. COUNCIL COMMENTS ADJOURNMENT The meeting will adjourn to (a closed session and thence to) a special joint meeting of the City Council. Growth Management Oversight Commission, and Planning Commission on Tuesday, April 29, 1997 at 5:30 p.m. in the Council Conference Room, Administration Building. thence to the regular City Council meeting on May 6. 1997 at 4:00 p.m. in the City Council Chambers. __._u..___...__~~..__._ __Pm ___~__.______~." "'I dlCl.r. IInd.r penalty of parjury that I am employed by the City of Chula Vista in e'e Office of tha City Clark and that i ;)OS d Tuesday, April 22, 1997 this Agenda/Notice on the Bulletin Board at Council Chambers 6:00 p.m. the PUbl~~es Building and et City Hall Dnblic Services Building (immediately following the City Cou.Qß'WiQot; j:- 17 SIGNED f/~ ." City of Chula Vista Citv Council CLOSED SESSION AGENDA Effective April I, 1994, there have been new amendments to the Brown Act. Unless the City Attorney, the City Manager or the City Council states otherwise at this time, the Council will discuss and deliberate on the following items of business which are permitted by law to be the subject of a closed session discussion, and which the Council is advised should be discussed in closed session to best protect the interests of the City. The Council is required by law to return to open session, issue any reports of final action taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be terminated at this point in order to save costs so that the Council's return from closed session, reports of final action taken, and adjournment will not be videotaped. Nevertheless, the report of final action taken will be recorded in the minutes which will be available in the City Clerk's Office. 1. CONFERENCE WITH LEGAL COUNSEL REGARDING 1. Existing litigation pursuant to Government Code Section 54956.9 . Divinagracia v. City of Chula Vista. 2. Liability claim pursuant to Government Code Section 54956.9(b)(1) . Claim of Mike Medrano. CONFERENCE WITH LABOR NEGOTIATOR - Pursuant to Government Code Section 54957.6 . Agency negotiator: John Goss or designee for CVEA, WCE, POA, IAFF, Executive Management, Mid-Management, and Unrepresented. Employee organization: Chula Vista Employees Association (CVEA) and Western Council of Engineers (WCE). Police Officers Association (POA) and International Association of Fire Fighters (IAFF). Unrepresented employee: Executive Management, Mid-Management, and Unrepresented. 2. REPORT OF ACTIONS TAKEN IN CLOSED SESSION .'._._"_m ~-..~,-,..- , ,/" April 16, 1997 TO: The 800"""1, Maym ... CIty Cooocil ~ FROM: John D. Goss, City Manager J~ ~ (j...---:7 SUBJECT: City Council Meeting of April 22, 199 This will transmit the agenda and related materials for the regular City Council meeting of Tuesday, April 22, 1997. Comments regarding the Written Communications are as follows: Sa. This is a letter from the City Attorney stating that to the best of his knowledge from observance of actions taken in Closed Session on 4/15/97 in which the City Attorney participated, there were no rreportable actions which are required under the Brown Act to be reported. IT IS RECOMMENDED THAT THIS LEITER BE RECEIVED AND FILED. JDG:mab __..___m__"__.., --'"---.--"-..------ ~~~ :- -ÏSt_ ~ ~3£~~ ~~-..... ON Of CHULA VISTA OFFICE OF THE CITY ATTORNEY Date: April 16, 1997 To: The Honorable Mayor and City Council From: John M. Kaheny, City Attorney ~ Re: Report Regarding Actions Taken in Closed Session for the Meeting of 4/15/97 The City Council met in Closed Session to discuss Jones Intercable v. City of Chula vista. The Redevelopment Agency met in Closed Session to discuss Conference with Real Property Negotiator (760 Broadway) . The City Attorney hereby reports to the best of his knowledge from observance of actions taken in the Closed Session in which the City Attorney participated, that there were no reportable actions which are required under the Brown Act to be reported. JMK:lgk C:\lt\clossess.no ~~/ 276 FOURTH AVENUE' CHULA VISTA· CALIFORNIA 91910 . (619) 691-5037 . FAX (619) 585-5612 tJ 1'I)e;I-<:or&.n.rR¡qdedp... -----_.- ---. - COUNCIL AGENDA STATEMENT Item ~ Meeting Date 4/22/97 /nß ITEM TITLE: Resolution Authorizing the Mayor to Execute a Contract with Municipal Resource Consultants for the Purpose of Determining if the City is Entitled to Additional Pension Surpluses to Offset Employee Benefit Costs SUBMITTED BY: 0;"",,, of F;",n"~~ REVIEWED BY: City Manager 0q ~ .:::/ (4/5ths Vote: Yes _No--1LJ SUMMARY: Approval is sought for a contingent-fee contract with Municipal Resource Consultants (MRC) to conduct an analysis of our pension accounts to determine if PERS has undervalued our current and prior surpluses, and to seek an extension of the June 30, 1997 deadline so that any newly identified surpluses may be used to offset pension costs. RECOMMENDATION: Adopt Resolution Authorizing the Mayor to Execute a Contract with MRC to Review the City's Pension Accounts. DISCUSSION: The City contracts with the State Public Employers Retirement System (PERS) to provide pensions for employees. Each month, the City makes payments into a defined benefit pension plan based upon the actuarially determined cost of the retirement benefits which include such factors as historical salary changes, investment earnings, and employee retirement and mortality rates. In recent years, the City has been informed by PERS that our pension accounts have developed surpluses which could be used to offset all or a portion of our monthly contributions. During the current fiscal year the City is offsetting pension costs with a surplus of $987,994. The previous two fiscal years the City has enjoyed pension offset cost savings of $1,923,231 in FY95 and $811,605 in FY96. . In 1990, the passage of SB 1015 repealed PEM.~uthorization to declare surpluses and temporarily reduce City pension contribution costs after July 1, 1997. This change in law was made partly as a result of the 1987 stock market correction and a concern by the legislature that a growing reliance on surpluses meant that some public agencies had not made general fund contributions to PERS for some years and were failing to plan for the possibility that surpluses might end and leave a local agency unprepared to make its normal retirement payment. As this program ends, PERS has advised their contracting agencies that no new surpluses will be established aher July 1, 1997, and that all existing surpluses must be used by June 30, 1997. 0--/ .-...-. ,. ,,-.-,-.'.. ,,-..--,.. . ... -------------- Page 2. Item (p Meeting Date MRC has contacted the City seeking authorization to conduct an analysis of our pension accounts to determine if PERS has undervalued our current and prior surpluses and to seek an extension of the June 30, 1997, deadline so that our unused surpluses, or surpluses newly identified by MRC as of July 1, 1997, may be used to offset our current and future pension benefit costs. This proposal would authorize MRC to conduct an analysis of the City's pension accounts to determine if new additional surpluses can be identified which otherwise will be lost. MRC proposes to commence work within five (5) working days following execution of this agreement and deliver a report within forty-five (45) days after thereafter. In order for the City to use additional surpluses identified by MRC by June 30, 1997, or to secure an extension which would allow the City to use them after July 1, 1997, it is important that the City authorize MRC to proceed as quickly as possible. MRC has structured its service to be self-funding to avoid creating an expenditure impact on the City's budget. Their fee equals ten percent (1 0%) of any new surpluses identified by MRC and realized by the City, that become eligible for use after July 1, 1997. Therefore, MRC will not be compensated until after the City notifies MRC that all or part of the additional surpluses identified by MRC have been credited or otherwise used to offset the City's required contribution to PERS. All expenses are absorbed by MRC, including airfare, auto rentals, meals, lodging, report production, telephone, mail, legal and actuarial expenses, etc. The contract has been reviewed and approved as to form by the City Attorney. Due to the short time frame involved and the specialized expertise required to perform the analysis, it would be an unreasonable task to assign to existing staff. The City will also benefit from the experience to be gained by MRC in performing similar work for many other local governmental entities. FISCAL IMPACT: There would be no fiscal impact this fiscal year. Any impact during future fiscal years would be contingent upon the contractor identifying and the City realizing additional PERS surpluses. The City and the Contractor would share in those surpluses with the City receiving ninety percent and the Contractor receiving ten percent. If the Contractor fails to identify any additional surpluses or the City, for whatever reason, is unable to realize a cost savings from any additional surpluses identified, the Contractor receives no compensation. &-.2. ~~~ u.o::.oc:. C1L L.-=L U U-L V , . I.""'. RESOLUTION NO. IrY¿,3:J RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE MAYOR TO EXECUTE A CONTRACT WITH MUNICIPAL RESOURCE CONSULTANTS FOR THE PURPOSE OF DETERMINING IF THE CITY IS ENTITLED TO ADDITIONAL PENSION SURPLUSES TO OFFSET EMPLOYEE BENEFIT COSTS WHEREAS, Municipal Resource Consultants ("MRC") has contacted the City seeking authorization to conduct an analysis of our pension accounts to determine if PERS has undervalued our current and prior surpluses and to seek an extension of the June 30, 1997 deadline so that our unused surpluses, or surpluses newly identified by MRC as of July 1, 1997, may be used to offset our current and future pension benefit costs; and WHEREAS, this proposal would authorize MRC to conduct an analysis of the City's pension accounts to determine if new additional surpluses can be identified which otherwise will be lost; and WHEREAS, MRC has structured its service to be self- funding to avoid creating an expenditure impact on the City's budget and their fee equals ten percent of any new surpluses identified by MRC and realized by the City, that become eligible for use after July 1, 1997. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby authorize the Mayor to execute a contract with Municipal Resource Consultants for the purpose of determining if the City is entitled to additional pension surpluses to offset employee benefit costs, on file in the City Clerk's office as Document No. . Presented by Approved as to form by Robert A. Powell, Director of ney Finance C:\rs\l1rc t-J ·-··-~l-·-'- ""u.. .n.,__.._. -,--,.,-. PROFESSIONAL SERVICES AGREEMENT Municipal Resource Consultants (MRC) hereby agrees to provide a professional service to enable the City of Chula Vista (City) to use additional surpluses identified by MRC to offset the City's required contn1>utions to the CaJjfomia Public Employees' Retirement System (PERS) and to extend the time for using the additional surpluses. MRC's service is to be provided on a self-funding basis to enhance the City's revenue without creating a budget expenditure impact. The service objectives, scope, timing and compensation are set forth as follows: 1. BACKGROUND Legislation enacted in 1990 (Senate Bill 1015) requires that PERS set employer contnoution rates using all assets of the plan, including assets previously categorized as "surplus", by July 1, 1997. The provisions of that legislation required phasing out the establishment of "new" surplus each year. This started with a "new" surplus equal to 80% of assets in excess of accrued liabilities for the 1993-94 fiscal year, then "new" surplus equal to 60% of such excess for fiscal 1994-95, 40% for fiscal 1995-96, and finally "new" surplus of 20% of such excess for fiscal 1996-97. PERS has advised that no new surplus will be established after the current 20% amount and employers will not be able to offset contributions due after July 1, 1997. Accordingly, PERS has advised public agencies that they must exhaust their surplus accounts by June 30, 1997. 2. OB]ECTIVF5 MRC's service is designed to achieve three related objectives: 0 To detect and document errors/omissions which have caused the City's PERS account surpluses to be understated; 0 To enable the City to use additional surpluses identified by MRC to offset the City's required contributions to PERS, before these surpluses become unusable; and 0 To extend the time available for using additional surpluses beyond June 30, 1997. To the degree MRC's service achieves the stated objectives, the benefits realized will affect the rescheduling of employer retirement obligation payments, but will not affect the overall amount of those obligations. 3. SCOPE OF SERVICE The scope of MRC's service includes, but is not limited to, the following procedures: 0 Procure from City a copy of the official statement it received from PERS which establishes the final determination by PER5 of the surplus amount in the City's account (the City should have received its statement from PERS by December 1996) 0 Obtain from City a copy of all official statements from PERS for the prior three valuations for which surpluses were determined ¿rf .---.... ...-..-.-.,--,.-. .,-,.._--~--------~-- 0 Review the legislative and implementing statutory provisions .pphcable to the determination of employee pension accoUIlt surplus amoUIlts to PERS 0 Review the assumptions and methodologies rehed upon by PERS to determine employee pension accoUIlt surplus amoUIlts 0 Prepare and provide to the City a report identifying: 0 Errors/omissions in assumptions/methodologies rehed upon by PERS which have caused the City's surpluses with PERS to be UIlderstated 0 Additional surpluses which the City is entitled to claim (from correcting the errors/ omissions detected by MRC), over and above the amoUIlt specified in the statement provided to the City by . PE..~, which . rep~e5e!\ts the final determination by PERS of the City's· surplus 0 Provide additional assistance as necessary to: 0 Enable the City to use additional surpluses identified by MRC to offset the City's required contributions to PERS 0 Secure an extension of the JUIle 30, 1997 deadline if the City's additional corrected surpluses exceed the contributions due in 1996-97 CJ Should MRC conclude that the City's pension accoUIlt surpluses have not been substantially UIlderstated, then MRC will cease work and notify the City. 4. TIMING MRC is prepared to commence the assignment within five (5) days following authorization with the objective of completing the analysis and delivering the report within forty-five (45) working days following receipt of the necessary information. In order for the City to use the additional surpluses identified by MRC by JUIle 30, 1997, or to secure an extension wlúch would allow the City to use them after July 1, 1997, it is critical that the City authorize MRC to proceed as quickly as possible. 5. COMPENSATION The report provided to the City shall identify errors/omissions detected by MRC wlúch have caused the City's PERS pension accoUIlt surpluses to be UIlderstated. MRC's report shall also quantify the amoUIlt of "additional surplus," wlúch is defined as the amoUIlt to wlúch the City is entitled to claim (from correcting the errors/omissions detected by MRC), over and above the amount spedfied in the statement provided to the City by PERS, which represents the final determination by PERS of the City's surplus. MRC's compensation will be 10% of the additional surplus amoUIlt realized, further described as follows: G -.s- ._'. ~_... ..-....... . ...-.....-----.--..--,--,-. - "---.---, The City agrees .to compensate MRC an amount equal to 10% of the additional surpluses realized that become eligible for use after July 1, 1997. This amount will be invoiced after the City notifies MRC that all or part of the additional surpluses have been credited, or used to offset the City's required contributions to PERS. Under this compensation plan, the City: 0 Authorizes MRC to file the necessary petitions, claims or appeals and to meet (on behalf of the City) with PERS to assist the City in realizing all of the additional surpluses to which it is entitled; and 0 Notifies MRC within 5 days after all or a portion of the additional surpluses have been credited, or used to offset the City's required contributions to PERS. All expenses are absorbed by MRC. These expenses include items such as a;rfare, auto rentals, meals, lodging, report production, telephone, mail, legal and actuarial counsel, etc. Earned compensation invoiced under this agreement is due and payable upon receipt. This agreement may be authorized by returrùng an executed copy. The original is for your records. City of By: Title: Signature: Date: MUNICIPAL RESOURCE CONSULTANTS P . JO ,INe. President Date: April 4, 1997 &-þ .. - - --..--------.-- --,.,--,.. --- .__.._._--_._~_._~_.__...._--,....._-~-". COUNCIL AGENDA STATEMENT Item 7 Meeting Date 4/22/97 ITEM TITLE: Resolution /8'~.3'1 Implementing a Pre-Tax Payroll Deduction Plan for CalPERS SelVice Credit Purchases SUBMITTED BY: Risk Manag~ REVIEWED BY: City Manager J~ (4/5ths Vote: Yes_No_XJ Effective July 1, 1996, the California Public Employees' Retirement System (CaIPERS) provides qualified members the option to elect the pre-tax pavroll deduction plan for their selVice credit purchases (i.e., redeposit, selVice prior to membership, military, etc.) In order to extend the benefit of this pre-tax option to its employees the City must submit the subject resolution to CaIPERS. RECOMMENDATION: That Council approve the resolution to extend this benefit to eligible employees. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Background Prior to July 1, 1996, CalPERS (PERS) members (employees) could elect, at any time prior to retirement, to make contributions for redeposit or other types of selVice credit (i.e., military, etc.) The employee could make these contributions via a cash lump sum payment or installment payments via after-tax payroll deductions. Fifteen Chula Vista employees are currently making selVice credit purchases via after tax payroll deductions. Effective July 1, 1996, PERS began to offer qualified members with an additional payment option, a pre-tax payroll deduction. Before an agency's members can elect this option, the agency must file a resolution with CalPERS which will allow the agency to extend the "pick-up" (aka payment by the City, the contribution collected on a pre-tax basis from the member to CalPERS on behalf of the member) as allowed under Internal Revenue Code (IRC) 414(b)(2) provisions for member payments of SelVice Credit purchases. By opting to participate in this "pick-up" program, the City would provide those member employees, who also opt to participate, with the benefit of deferring income tax liability on member selVice credit purchases. The resolution presented herein will allow the City to extend the "pick-up" option to its employees. FISCAL IMPACT: There is no direct fiscal impact to the City as all selVice credits are purchased by the member employees. There may be minimal reductions in City liability for medicare due to the reduced taxable income base afforded by this pre-tax benefit. risk\383 7-/ H___',_.'._'._ ..m.._...._'__ _. _.____...._.._._..._. -. - -"-'-'-~'-'-'-"'---'--"-'-'- ----,.-'.-----..-,---.--.---- Employer Code: 0195 RESOLUTION NO. / ~¿ .3 ~ RESOLUTION OF THE CITY OF CHULA VISTA IMPLEMENTING PRE-TAX PAYROLL DEDUCTION PLAN FOR CALPERS SERVICE CREDIT PURCHASES (CONTRIBUTION CODE 14) WHEREAS, the Board of Administration of the California Public Employees' Retirement System (CaIPERS) at the April 1996 meeting approved a pre-tax payroll deduction plan for service credit purchases under Internal Revenue Code (IRC) section 414 (h) (2) ¡ and WHEREAS, the City of Chula vista has the authority to implement the provisions of IRC section 414(h) (2) and has determined that even though implementation is not required by law, the tax benefit offered by this section should be provided to those employees who are members of CaIPERS¡ and WHEREAS, the city of Chula vista elects to participate in the pre-tax payroll deduction plan for all employees in the fOllowing CalPERS coverage group(s): Miscellaneous (70001) Fire/EMT (74001) Police (75001) NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA AS FOLLOWS: I. That the city of Chula vista will implement the provisions of IRC section 414 (h) (2) by making employee contributions for service credit purchases pursuant to the California State Government Code on behalf of its employees who are members of CalPERS and who have made a binding irrevocable election to participate in the pre-tax payroll deduction plan. "Employee contributions" shall mean those contributions reported to CalPERS which are deducted from the salary of employees are credited to individual employee accounts for service credit purchases thereby resulting in tax deferral of employee contributions. II. That the contributions made by the city of Chula vista to CaIPERS, although designated as employee contributions, are being paid by the City of Chula vista in lieu of contributions by the employees who are members of CaIPERS. III. That the employees shall not have the option of choosing to receive the contributed amounts directly instead of having them paid by the city of Chula vista to CaIPERS. 7---.2 _"_,__,_,,,_,.,__, _._., n._" 'M _ .....____.__,_ IV. That the City of Chula Vista shall pay to CalPERS the contributions designated as employee contributions from the same source of funds as used in paying salary, thereby resulting in tax deferral of employee contributions. V. That the effective date for commencement of the pre-tax payroll deduction plan cannot be any earlier than July 1, 1996, or the date the completed resolution is received and approved in calPERs, whichever is later. VI. That the governing body of the City of Chula vista shall participate in and adhere to requirements and restrictions of the pre-tax payroll deduction plan by reporting pre-tax payroll deductions when authorized by CalPERS for those employees of the above stated Coverage Groups who have elected to participate in this plan. BY: (Name of Official) BY: (Title of Official) Approved as to form by (Date adopted and approved) RETURN ADDRESS: City of Chula vista 276 Fourth Avenue Chula Vista, CA 91910 Attn: Risk Manager ***************************************************************** ************* FOR CALPERS USE ONLY Pre-tax Payroll Deduction Plan Effective Date: Approved By: Title: MEMBER SERVICES DIVISION, Service Credit section - Unit 830 7-3 ._'...... - ....---... ^._.~---- COUNCIL AGENDA STATEMENT g' Item )III' Meeting Date 4/22/97 ITEM TITLE: Resolution / S",? 3.s- Appropriating $156,000 from the unappropriated fund balance of the Public Liability Trust Fund for settlement of claims as may be authorized by City Council through June 30, 1997 SUBMI'ITED BY: R",,_'~ ~ REVIEWED BY: City Manager Jq ~:_ (4/5ths Vote: YesXNo~ This appropriation will increase the Insurance (Dept. 0700) budget for emergency unanticipated settlement payments made on behalf of the Public Liability Fund and will provide for claims expenses that may be authorized by City Council through the end of the fiscal year. RECOMMENDATION: That Council adopt the resolution appropriating the funds. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Often, when claim settlements are authorized in Closed Session, payments are due to the plaintiff within a day or two. At the beginning of a fiscal year, the immediate payment of a claim is not a problem since there are generally sufficient funds available in the Insurance Budget (0700), a General Fund department, to cover the payment until an appropriation from the Public Liability Trust Fund (431) can be made. Later in a fiscal year, the immediate payment becomes problematic because there are not enough unexpended funds remaining in the Insurance Budget to "cover" the payment until an appropriation can be made. An appropriation generally takes one to two weeks for preparation and docketing of the appropriation action. By appropriating the funds as per this resolution, the Insurance Budget (0700) will have sufficient funds to cover claims related expenditures through the end of the fiscal year as settlements are authorized. This will allow settlements to be paid in a timely manner and will eliminate the need for additional Council action once the settlement has been authorized. FISCAL IMPACT: This resolution will appropriate $156,000 from the unappropriated balance of the Public Liability Trust Fund to the General Fund. risk\496.1 ¿;~/ - -----.---.....-.-----.-----.... RESOLUTION NO. /f5~;¡S- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING $156,000 FROM THE UNAPPROPRIATED FUND BALANCE OF THE PUBLIC LIABILITY TRUST FUND FOR SETTLEMENT OF CLAIMS AS MAY BE AUTHORIZED BY CITY COUNCIL THROUGH JUNE 30, 1997 WHEREAS, it is necessary to reimburse the Insurance (Dept. 0700) budget for emergency unanticipated settlement payments made on behalf of the Public Liability Fund and will provide for cliams expenses that may be authorized by City Council through the end of the fiscal year. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby appropriate $156,000 from the unappropriated fund balance of the Public Liability Trust Fund to Account 100-0700-5441 for settlement of claims as may be authorized by City Council through June 30, 1997. Presented by Approved as to form by Teri Enos, Risk Manager C:\rs\liability.app g>---cÅ u....__... -.-----.,-.-.-...,-..-.- COUNCIL AGENDA STATEMENT Item 9 Meeting Date 4/22/97 ITEM TITLE: Resolution /?&3~ Appropriating unanticipated insurance dividends received to the Workers Compensation Trust Fund for claims reserve funding purposes SUBMITI'ED BY: Ri>k M~g~ ~ REVIEWED BY: City ManagerJ1 ~~ /') (4/Sths Vote: YesXNo_) On November 12, 1996, the City received an insurance dividend check in the amount of $105,182 from the San Diego Pooled Insurance Program Authority (SANDPIPA). These dividends were unanticipated and are insurance related. This resolution will appropriate the dividends received to the Workers Compensation Insurance Trust Fund to partially fund the required claims reserve. RECOMMENDATION: That Council approve the resolution appropriating the funds. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. ISSUE: Background During the FY 1996-97 budget deliberations, Council was advised that the Workers Compensation Claim Reserves were underfunded by approximately $563,000. During that same period, SANDPIPA, the public liability pooled insurance program through which the City also purchases excess layers of liability and workers compensation insurance, was revisiting their claims reserve requirement policy and clarifying whether member reserves should be funded (having actual cash reserves) or unfunded (an accounting entry only). Council deferred appropriation of the additional reserve funding pending clarification of SANDPIPA's claim reserves policy. Since that time, SANDPIP A's Underwriting Committee has met and discussed claim reserve funding requirements at length. It has been clarified that: 1) Reserves for a fiscal year are to be established and maintained at a level that covers the claim reserve (incurred liability) for open claims at the end of the prior fiscal year, plus an amount equal to 100% of the member's self-insured retention (Chula Vista's is $250,000); and 2) Failure to maintain reserves (reserves being actual cash reserves which would be available for payment of all claims should they become payable) and lack of appropriate funding "may be cause for cancellation of coverage." This clarification reaffirms the need to fully or more fully fund the claims reserve. r-j .-..--. -...-......---.-......+.....- <---- Page 2, Item q Meeting Date 4/22/97 Discussion The City participates in the San Diego Pooled Insurance Program Authority (SANDPIPA) for liability and workers compensation coverage above the City's self-insured retention ($250,000) up to $5,000,000. Over the years, the twelve member cities have made contributions to the Pool based on the exposures to liability they present along with their claims history.l To date, the Pool has been very successful in that we have not experienced any catastrophic losses. As a result, the Pool has been able to reach full reserve funding. Last Fall, the Pool's undelWriter analyzed the Pool's funding model and projected funding needs. Based on their analysis, it was determined that there was a $2 million "surplus" in the funding. A generally accepted practice in insurance funding is to pay dividends equal to 25% of the funding surplus amount. Based on this, the SANDPIP A Board (of which the City's Risk Manager participates) approved a dividend of $500,000 to be distributed amongst the member agencies. The amount to be distributed to each member agency was calculated by the Pool's underwriter based on each member's total contributions, less paid claims and known settlement amounts expressed as a "percentage" of the total. Thus, each member's dividend reflects their percentage of the declared dividend. Chula Vista received the largest dividend, $105,182, primarily due to our good fortune in having a low claims paid history with the Pool ($10,200 as of September '96). The dividend check has been deposited in the General Fund since the City's contributions to the pool have all been made from that fund. Recommendation In an effort to move towards full reserve funding, it is recommended that the $105,182 insurance dividend received be appropriated from the General Fund fund balance to the Workers' Compensation Trust Fund (430). The balance of the reserves funding issue will be addressed as part of the FY 1997-98 Budget proposal. FISCAL IMPACT: Appropriation of unanticipated revenues, thus reducing the impact to existing General Fund fund balance for fully funding workers compensation claim reserves by $105,182. risk\470 9-2 1 Attached for your information is a roster of the 12 member cities. - _.·.·_·_'·_M'.__'."'________._~"'..."._ Page 3, Item G1 Meeting Date 4/22/97 ATIACHMENT SAN DIEGO POOLED INSURANCE PROGRAM AUTHORITY (SANDPIPA) Member Cities (1997) Chula Vista Coronado Del Mar Encinitas Escondido Imperial Beach Lemon Grove National City Oceanside Santee Solana Beach Vista risk\470 9-;? __n______... - ....__._-_._-_..._._-.-_._...~------_. RESOLUTION NO. )¿¡l3? RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROPRIATING UNANTICIPATED INSURANCE DIVIDENDS RECEIVED TO THE WORKERS COMPENSATION TRUST FUND FOR CLAIMS RESERVE FUNDING PURPOSES WHEREAS, on November 12, 1996, the City received an insurance dividend check in the amount of $105,182 from the San Diego Pooled Insurance Program Authority (SANDPIPA) ; and WHEREAS, these dividends were unanticipated and are insurance related; and WHEREAS, staff recommends appropriating the dividends received to the Workers Compensation Insurance Trust Fund to partially fund the required claims reserve. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby appropriate unanticipated insurance dividends received in the amount of $105,182 to the Workers Compensation Trust Fund for claims reserve funding purposes. Presented by Approved as to form by Teri Enos, Risk Manager ttorney C:\rs\workCOMp.app 9-1 .-.--.-"'---". ___"....__..._.,__.~..u__._. _n.~ .__._.__h_ ._+._...._~.__,_____._ COUNCIL AGENDA STATEMENT Item /0 Meeting Date 04/22/97 ITEM TITLE: a) Resolution /õt..3 7 Approving the renewal of a Memorandum of Understanding with San Diego Economic Development Corporation b) Resolution Iff?:J f5 Approving the renewal of a Memorandum of Understanding with the South County Economic Development Council SUBMITTED BY: Commo"", DN"O'~~ [_So REVIEWED BY: City Manage~ bv6 .. (4/5ths Vote: Yes_ No_X..! /'7/ BACKGROUND: Council appropriated funding for the San Diego Economic Development Corporation (SDEDC) and the South San Diego County Economic Development Council (SCEDC) in FY 1995/96 and FY 1996/97. Memorandum of Understandings (MOU) with SDEDC and SCEDC were approved by Council for FY 1995/96. The MOUs called for coordinated economic development efforts and required quarterly reports from SDEDC and SCEDC in exchange for the City contributions. While Council appropriated current year funds without stipulating a required renewal of the MOUs, SDEDC, SCEDC and City staff have continued to operate per the terms of the FY 1995/96 MOUs. Staff is requesting that Council formally authorize the Mayor to sign the renewed FY 1996/97 MOU which contains no substantive changes. RECOMMENDATION: That Council adopt the resolutions approving the renewal of the MOUs with the San Diego Economic Development Corporation (SDEDC) and the South San Diego County Economic Development Council (SCEDC). BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: I. FUNDING LEVELS Council appropriated $10,000 and $7,500 in both FY 1995/96 and FY 1996/97 for SDEDC and SCEDC, respectively. These amounts are reflected in the MOUs. II. DUTIES As noted, the two proposed MOU's contain no substantive changes from those approved by Council for FY 1995/96. The key duties are summarized below. /¿;-! Page 2, Item 10 Meeting Date 04/22/97 A. SDEDC and SCEDC 1. ReDresentation on Boards and Committees SDEDC: The Chula Vista Council may participate in the selection of one Chula Vista-based business representative to sit on the SDEDC Board. The City's representative must be a paid member of the SDEDC. Mr. Curt Stephenson sits on the board and previously represented the City in his capacity with the EastLake Development Company - the only Chula Vista- based SDEDC member. Because Mr. Stephenson has left the EastLake Company, the Chula Vista position is currently vacant. Staff is contacting EastLake to determine if they wish to designate a replacement. If not, staff will advise Council of its options, including soliciting a Chula Vista business to join the SDEDC and sit on the board as a liaison to Chula Vista. SCEDC: The Chula Vista Council may appoint a representative from among themselves to sit on the SCEDC Board as a voting member. Currently, Councilmember Salas is the City's voting representative, and Councilmember Moot is the alternate. Additionally, City representatives - Council and/or staff -may attend all Board meetings as non-voting members, and can participate in standing committees. Councilmember Salas is the Co-Chair of the Transborder Business Development Committee. 2. Enhanced Coordination/Assistance to Chula Vista Businesses Both MOU's provide for the signatories to cooperate with and assist the City of Chula Vista, particularly the City's Community Development Department, in areas of business attraction and retention. 3. Quarterlv ReDortinC1 The MOU's require the two entities to submit quarterly reports in the form provided in Exhibit 1 of the MOU. These reports require each entity to quantify business assistance, by category (e.g. attraction, retention, expansion), countywide as well as within Chula Vista. Payments are made in two installments upon receipt of 2nd and 4th Quarter reports. These Quarterly reports have been submitted to Council in the past; the most recent reports are being submitted via a separate Information Memorandum. B. QrL The City agrees to continue to coordinate with the SDEDC and SCEDC in terms of responding to business referrals and inquiries, providing Chula Vista promotional materials, and participating in each entity's events as appropriate. FISCAL IMPACT: Council approved $10,000 for SDEDC and $7,500 for SCEDC in the Community Development Department FY 96/97 budget (Account 100-0261-5223). (DA/mdJ H:\HOME\COMMDEV\STAFF.REP\04-22-97\SD-SOCO.EDC [April 11, 1997 (3:41pm)] /¿J~~ - --_..,--. ..-.-." .._._-~---- RESOLUTION NO. J?¿'37 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CHULA VISTA AND THE SAN DIEGO ECONOMIC DEVELOPMENT CORPORATION FOR COOPERATIVE ECONOMIC DEVELOPMENT EFFORTS WHEREAS, the City of Chula Vista has determined that business development and job creation efforts are important to the City's economic health and stability; and WHEREAS, the City desires to cooperate with and support the San Diego Economic Development Corporation to further local and regional economic development goals; and WHEREAS, the San Diego Economic Development Corporation desires to cooperate with, support and promote Chula Vista economic development goals; and WHEREAS, the City as part of the fiscal year 1996-97 budget appropriated $10,000 to fund SDEDC activities; and WHEREAS, the Memorandum of Understanding provides for a quarterly reporting of activities benefiting San Diego County and specifically Chula Vista, as well as representation on the SDEDC Board by a Chula Vista based company representative. WHEREAS, SDEDC understands that future funding requests will be evaluated in light of the SDEDC's performance as reflected in the quarterly reports. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does hereby find, determine and resolve to: a) approve the agreement between the City of Chula Vista and the San Diego Economic Development Corporation in the form presented, a copy of which shall be kept on file with Office of the City Clerk as Document No. ; and b) authorize and direct the Mayor to execute the agreement in a final form approved by the City Attorney. Presented by Approved as to form by ~, $:~/ ~ Chris Salomone --.. Director of Community Development I(DR) M:\HOME\COMMDEV\RESOS\SDEDC.MQU (April 15, 1997 (10:19am)] /(9/J-j .. __.... u._..___._·_ MEMORANDUM OF UNDERSTANDING BElWEEN THE CITY OF CHULA VISTA AND THE SAN DIEGO ECONOMIC DEVELOPMENT CORPORATION IN SUPPORT OF MUTUALL Y BENEFICIAL REGIONAL ECONOMIC DEVELOPMENT EFFORTS This MEMORANDUM OF UNDERSTANDING (MOU) is entered into and effective as of July 1, 1996, by and between the City of Chula Vista, a chartered municipal corporation ("City") and the San Diego Economic Development Corporation, a non-profit corporation ("SDEDC") with reference to the following facts: RECITALS A. WHEREAS, the City of Chula Vista has determined that business development and job creation efforts are important to the City's economic health and stability; and B. WHEREAS, the City desires to cooperate with and support the San Diego Economic Development Corporation to further local and regional economic development goals; and C. WHEREAS, the San Diego Economic Development Corporation desires to cooperate with, support and promote Chula Vista economic development goals; and D. WHEREAS, the City as part of the fiscal year 1996-97 budget awarded SDEDC a $10,000 contribution; and E. WHEREAS, SDEDC understands that this City support is contingent upon the execution of a Memorandum of Understanding which provides for a quarterly reporting of activities benefiting San Diego County and specifically Chula Vista, as well as representation on the SDEDC Board by a Chula Vista based company representative. F. WHEREAS, SDEDC understands that future funding requests will be evaluated in light of the SDEDC's performance as reflected in the quarterly reports. NOW, THEREFORE, in consideration of the above recitals, the mutual obligations set forth herein, and other valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, the City and SDEDC do hereby agree as follows: 1. CITY OF CHULA VISTA DUTIES. 1.1 Financial Support. The City agrees to fund the efforts of the SDEDC in the amount of $10,000 in fiscal year 1996-97, contingent upon the receipt of four (4) quarterly reports and representation on the Board and committees as stipulated in this MOU. Payment shall be made in two (2) equal installments. The first payment of five thousand dollars ($5,000) will be made upon receipt of a SDEDC invoice and delivery and City approval of the second quarterly report. Because SDEDC by laws require receipt of fiscal year contributions within its fiscal year, which terminates June 30, 1997, the second payment will be made upon receipt of a SDEDC invoice for fIVe thousand dollars ($5,000) and delivery and City approval of the fourth quarter report through May. This second payment will be made by June 25, 1997 contingent upon receipt of the invoice and required reports no later than June 7, 1997. The full fourth quarter report (including the month of June) will be due by July 30. SDEDC will fumish an Annual Report for FY 1997 within 90 days of the fiscal year end (June 30, 1997). [(MD)C:\wp51\document\597.96 (r1iIV. April 10, 1997)] / ¿;J~ ~ c2.. Page 1 - -...-. .--, -----..---."..-.-----------.. Memorandum of Understanding 1.2 Response to Inquiries and Business Leads. The City will continue to cooperate with the SDEDC by providing timely responses to information requests regarding the site or building availability, incentives, permit processing and other issues related to business development in Chula Vista, as well as to provide proactive follow-up to business referrals. 1.3 Participation in SDEDC Sponsored Events. The City will continue to participate in and coordinate with eyents sponsored by the SDEDC as appropriate and within budgetary constraints. 1.4 Availability of Chula Vista Promotional Materials. The City will continue to provide SDEDC with promotional materials and information both proactively and as requested to assist SDEDC in promoting the region and to highlight Chula Vista information as appropriate. 1.5 Acknowledgement of SDEDC. The City agrees to acknowledge SDEDC contributions which lead to the successful attraction or retention of desirable business or development in Chula Vista. 2. SAN DIEGO ECONOMIC DEVELOPMENT CORPORATION DUTIES. 2.1 SDEDC Board and Committee Representation. In accordance with existing SDEDC by laws as pertains to representation of funding government entities (section 3.3.2) the SDEDC agrees to allow the City of Chula Vista to participate in the selection of a Chula Vista business representative for the SDEDC Board from a list of members in good standing prepared by the SDEDC. The City of Chula Vista shall also be invited to appoint a Council, staff, and/or business representative to any ofthe SDEDC advisory committees, (including Team San Diego Business Advisory Board, International Advisory Committee, Business News Bureau, and Cross Border Economic Development/International Trade Legislative Action Committee). 2.2 Referral of Business Leads. The SDEDC will continue to forward all appropriate business development leads to the Economic Development division within Chula Vista's Community Development Department in a timely manner. Sources of leads will include, but are not limited to, the State's Trade and Commerce Agency; inquiries generated by ad placements, conferences and trade shows, and trade missions; general "call-ins" and "walk-ins"; and other sources, including other public or private entity referrals. 2.3 Retention Activities. SDEDC retention efforts will include Chula Vista companies in the survey, on-site visits, and interview process. I(MD)c:\wp51\ØOaJment\597.96 (rev. April 10, 1997)J /¿1J/J~ Page 2 -.--.-- .. -.-~._-.-._._-.---~- Memorandum of Understanding 2.4 Promotional Materials. SDEDC promotional materials shall integrate information regarding Chula Vista assistance programs, development projects, special events, business trends, business support systems, demographics, amenities and other pertinent and general information as appropriate. 2.5 Public Relations. SDEDC's public relations and image improvement program will proactively include Chula Vista program, activities and firms, including participation in the SDEDC Business News Bureau. 2.6 Public Policy. SDEDC's pro-business public policy program will include proactive solicitation of Chula Vista public and private leaders to participate in discussion forums when appropriate, and Chula Vista involvement in the development of information to be distributed amongst policy makers when appropriate, as well as the presentation of such information to the policy makers when appropriate. 2.7 Trade Shows and Conferences. The SDEDC agrees to: 1) notify the Economic Development Division in advance of participation/exhibition at trade shows and conferences, and 2) disseminate information regarding Chula Vista economic development efforts at the SDEDC booth. SDEDC also agrees to advise Chula Vista of opportunities to partner with SDEDC and/or "Team California". 2.8 Trade Missions. The SDEDC will notify the Chula Vista Economic Development Manager well in advance of foreign or U.S. trade missions or incoming business delegations and will invite Chula Vista representative(s) to participate where appropriate. SDEDC will proactively seek and offer opportunities to Chula Vista to co- host these events, and to offer Chula Vista tours or receptions as appropriate. SDEDC will provide Chula vista with a list of the incoming delegation participants to facilitate follow-up by Chula Vista staff as appropriate, and will share all trade mission generated leads as appropriate. 2.9 One Stop Permit Assistance Center. The SDEDC agrees to provide technical assistance to city-wide Chula Vista commercial and industrial businesses via the one stop regional permit assistance center, generally in accordance with the management systems previously established related to the High Tech/Biotech Zone. 2.10 Quarterly Reporting. Coinciding with the Chula Vista fiscal year, July 1 to June 30, the SDEDC will make quarterly reports to the City (with each report due at the end of the quarter) utilizing the reporting format provided in Exhibit 1. By responding to each item on Exhibit 1, the SDEDC will provide information regarding its economic development activities which have taken place over the reporting quarter and highlighting the benefit to Chula Vista. V\lhere no activities have taken place in a particular category, the item should simply be marked "Not Applicable." The standardized reporting format allows for the SDEDC (and other economic development entities receiving funding from the City) to provide the following information, as applicable: a. Names of all businesses that the SDEDC has successfully assisted, broken out by recruitment, retention, and expansion assistance, and identifying each businesses' ((MD)c:\wpS1\docunent\S97.96 (rev. April 10, 1997)] /()d -~ Page 3 .~._..- _.-._--_...--._-_.__.~ _._- Memorandum of Understanding original location, and relocation jurisdiction and site (as applicable). This information should highlight Chula Vista businesses assisted, and include the name and title of the Chula Vista business contact and phone. b. Names of businesses that were referred to City of Chula Vista staff for local assistance; information concerning follow-up assistance provided to these clients by SDEDC; and final outcome of client assistance (e.g. site selection; etc.). c. Names of business clients personally shown Chula Vista sites by SDEDC; information conceming fOllow-up assistance provided to these clients by SDEDC; and final outcome of client assistance (site selection). d. Copies of all marketing materials produced by the SDEDC during the reporting quarter and identification of information included in these materials which promotes Chula Vista and/or specific Chula Vista amenities, events, projects, programs, businesses, services or other pertinent activities. Upon execution of this MOU, SDEDC shall provide Chula Vista a list of all existing PR materials currently available to clients, and shall make available 10 copies each of these and of new materials as requested by the City, offering additional copies for purchase by the City at cost. e. Listing of all marketing activities undertaken during the reporting quarter and an explanation of how Chula Vista was either represented and/or directly involved. This listing should include, but not be limited to: · Print advertising · Trade shows (exhibits) · Conferences/seminars (presentations) · Trade missions (both in-bound and foreign) · Business delegations/receptions · PR efforts to promote positive news coverage, including the "Business News" Bureau · Newsletters · Press releases · Direct mail f. Quantification of all businesses visited as part of the SDEDC business retention ("Local Outreach") program highlighting Chula Vista businesses visited. For Chula Vista businesses SDEDC will provide company names and locations, and business contact, title, and phone. g. List of all businesses successfully assisted by the One Stop Permit Assistance Center, highlighting Chula Vista businesses. h. Quantification of the total number of company's provided "Red Team" assistance. Identify all successful efforts by providing company name and location, and contact name, title and phone, highlighting Chula Vista companies assisted. Also, identify the members of each "Red Team" by name, title, and organization. For each successful "Red Team" effort briefly summarize the company's needs and issues and the type of assistance provided. i. Identification of any business or other surveys conducted and explanation of how Chula Vista was represented and/or directly involved. (CMD)c:\wp51\d0cument\597.96 (rev. April 10, 1997) /¡J/J ~ Page 4 .......... ....--"--.-----.------... Memorandum of Understanding j. Listing and description of any public policy forums and/or adYocacy meetings held and explanation of how Chula Vista was represented and/or directly involved. k. Identification of efforts made to promote utilization of regional firms for goods and services as part of the "Buy San Diego" program and explanation of how Chula Vista businesses were directly involved and/or represented. I. Description of efforts to promote regional targeted industries and technology specialties, including the environmental industry and the biotech/biomed industry, and explanation of how Chula Vista was represented and/or directly involved. This should specifically include reporting on efforts to assist Chula Vista to promote the Chula Vista High Tech/Biotech Zone, including the Western Regional BioProcessing Center, and the Border Environmental Commerce Alliance (BECA). m. Description of èfforts to support Chula Vista-initiated economic development efforts and special projects that actively seek regional, state and/or federal funding and/or programmatic support, such as the two Chula Vista cluster-related initiatives referenced in item "1" above (High Tech/Biotech Zone and Western Regional BioProcessing Center; and Border Environmental Commerce Alliance) and the Hydrogen Fuel Cell Business Demonstration Program. Coinciding with the end of the Chula Vista fiscal year, the SDEDC will provide the City's Economic Development Manager with a copy of the SDEDC annual report. If the annual report is not yet available, the SDEDC will notify the Economic Development Manager as to when the report should be expected. 3. Miscellaneous. 3.1 Hold Harmless. SDEDC 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 the conduct of the Consultant, or any agent or employee, subcon- tractors, or others in connection with the execution of the work covered by this MOU, except only for those claims arising from the sole negligence or sole \,\,illful conduct of the City, its officers, or employees. SDEDC's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, SDEDC at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. SDEDCs' indemnification of City shall not be limited by any prior or subsequent declaration by the SDEDC. 3.2 Termination of MOU for Cause. If, through any cause, SDEDC shall fail to fulfill in a timely and proper manner SDEDC's obligations under this MOU, or if SDEDC shall violate any of the covenants, agreements or stipulations of this MOU, City shall have the right to terminate this MOU by giving written notice to SDEDC of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that event, SDEDC shall be entitled to receive just and equitable compensation for any services satisfactorily performed up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by SDEDC's breach. [(MD)c:\wpS1\Ooa.ment\S97.96 (rev. April 10, 1997)) /¿Jd ---4-- Page 5 --.-"-...-..". "-,~-, ,.. ,_... ".----...-.-.-----.'. Memorandum of Understanding 3.3 Independent Contractor City is interested only in the results obtained and SDEDC shall perform as an independent contractor with sole control of the manner and means of performing the services required under this MOU. City maintains the right only to reject or accept SDEDC's work products. SDEDC and any of the SDEDC's agents, employees or representatives are, for all purposes under this MOU, 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, retirement benefits, worker's compensation benefits, injury leaye or other leave benefits. Therefore, City will not withhold state or federal income tax, social security tax or any other payroll tax, and SDEDC shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 3.4 General Provisions. This MOU constitutes the entire agreement between the parties with respect to the subject matter hereof and any and all other written or oral agreements with respect thereto are hereby superseded. This MOU may be executed in multiple counterparts which, taken together, shall constitute one agreement. [SIGNATURE PAGE FOLLOWS] I(MD)c:\wp51\doa.ment\597.96 (rev. April 10, 1997)] ¡éJrJ ~? Page 6 ._"". _._,._-~.. -~.~._-~--------_.. Memorandum of Understanding Signature Page to the Memorandum of Understanding between the City of Chula Vista and the San Diego Economic Development Corporation in support oftheir mutually beneficial regional economic development efforts. IN WITNESS WHEREOF, City and SDEDC have executed the Memorandum of Understanding thereby indicating that they have read and understand same, and indicate their full and complete consent to its terms effective as of July 1, 1996. SAN DIEGO ECONOMIC DEVELOPMENT CORPORATION DATED: f-¡S-- c¡? 1997 CITY OF CHULA VISTA BY: DATED: ,1997 John D. Goss, City Manager APPROVED AS TO FORM: BY: DATED: ,1997 John M. Kaheny, City Attorney . [(MD)c:\wp51\doa.ment\597.96 (rev. April 14, 1997)] /1/l-~ Page 7 ___u.....·_..... _"e_'_" __'M__.__. __~_____., RESOLUTION NO. / ?'¿y ~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CHULA VISTA AND THE SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL FOR COOPERATIVE ECONOMIC DEVELOPMENT EFFORTS WHEREAS, the City of Chula Vista has determined that business development and job creation is important to the City's economic health and stability; and WHEREAS, the City recognizes the importance of participating in regional as well as local economic development efforts; and WHEREAS, the South County Economic Development Council plays a major role in Southbay economic development efforts; and WHEREAS, the City as part of the fiscal year 1996-97 budget appropriated $7,500 to fund SCEDC activities; and WHEREAS, the Memorandum of Understanding provides for quarterly reporting of activities which benefit the South San Diego region and specifically Chula Vista, and representation on the SCEDC Board and various committees; and WHEREAS, SCEDC understands that future funding requests will be evaluated in light of SCEDC's performance as reflected in their quarterly reports. NOW. THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does hereby find, determine and resolve to: a) approve the agreement between the City of Chula Vista and the South County Economic Development Council in the form presented, a copy of which shall be kept on file with Office of the City Clerk as Document No. ; and b) authorize and direct the Mayor to execute the agreement in a final form approved by the City Attorney. Presented by Approved as to form by &- ~~ Chris Salomone Director of Community Development ((DR) M:\HOME\COMMDEV\RESOS\SOCQEDC.MQU {April 15, 1997 (10:19amJ] /c:Jß-"j .-.. ...~. -------"- . MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF CHULA VISTA AND THE SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL IN SUPPORT OF MUTUALLY BENEFICIAL SOUTHBA Y ECONOMIC DEVELOPMENT EFFORTS This MEMORANDUM OF UNDERSTANDING (MOU) is entered into and effective as of July 1, 1996, by and between the City of Chula Vista, a chartered municipal corporation ("City") and the South County Economic Development Council, a non-profit corporation ("SCEDC") with reference to the followin9 facts: RECITALS A. WHEREAS, the City of Chula Vista has determined that business development and job creation is important to the City's economic health and stability; and B. WHEREAS, the City recognizes the importance of participating in regional as well as local economic development efforts; and C. WHEREAS, the South County Economic Development Council plays a major role in Southbay economic development efforts; and D. WHEREAS, the City as part of the fiscal year 1996-97 budget awarded SCEDC $7,500 to support their South bay economic development efforts; and E. WHEREAS, SCEDC understands that this City support is contingent upon the execution of a MOU which provides for quarterly reporting of activities which benefit the South San Diego region and specifically Chula Vista, and representation on the SCEDC Board and various committees; and F. WHEREAS, SCEDC understands that future funding requests will be evaluated in light of SCEDC's performance as reflected in their quarterly reports. NOW, THEREFORE, in consideration of the above recitals, the mutual obligations set forth herein, and other valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, the City and SCEDC do hereby agree as follows: 1. CITY OF CHULA VISTA DUTIES. 1.1 Financial Support. The City agrees to fund the efforts of the SCEDC in the amount of $7,500 in fiscal year 1996-97, contingent upon the receipt of four (4) quarterly reports and representation on the Board and committees as stipulated in this MOU. Payment shall be made in two equal installments of $3,750 each. The first payment will be made upon receipt of a SCEDC invoice and delivery and City approval of the 2nd quarterly report. The second payment will be made upon receipt of a SCEDC invoice and delivery and City approval of the 4th quarterly report and the SCEDC annual report. 1.2 Response to Inquiries and Business Leads. The City will continue to cooperate with the SCEDC by providing timely responses to information requests regarding the site or building availability, incentives, permit processing and other issues related to business development in Chula Vista, as well as to provide proactive follow-up to business referrals. {(MD)c:\wp51\document\599.96 (AllV. April 10, 1997)] /¿9grc2. Page 1 ..-----.- ~.~--~-----,--,. _."~.". Memorandum of Understanding 1.3 Participation in SCEDC Sponsored Events. The City will continue to participate in and coordinate with events sponsored by the SCEDC as appropriate and within budgetary constraints. 1.4 Availability of Chula Vista Promotional Materials. The City will continue to provide SCEDC with promotional materials and information both proactively and as requested to assist SCEDC in promoting the South bay region and to highlight Chula Vista information as appropriate. 1.5 Acknowledgement of SCEDC. The City agrees to acknowledge SCEDC contributions which lead to the successful attraction or retention of desirable business or development in Chula Vista. 2. SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL DUTIES. 2.1 SCEDC Board and Committee Representation. The SCEDC agrees to the City of Chula Vista Council selecting a representative from among themselves and one altemate to represent Chula Vista on the SCEDC Board on a yearly basis. Further, the City of Chula Vista may appoint Councilor staff liaisons to attend the Board meetings as non-voting members. The City of Chula Vista shall also be invited to appoint 1 or more representatives to any of the SCEDC advisory committees. 2.2 Referral of Business Leads. The SCEDC will continue to forward all business deyelopment leads to the Economic Development division within Chula Vista's Community Development Department in a timely manner. Sources of leads will include, but are not limited to, the State's Trade and Commerce Agency; SCEDC inquiries generated by ad placements, conferences and trade shows, and trade missions; general "call-ins" and "walk-ins"; and other sources, including other public or private entity referrals. 2.3 Retention Activities. SCEDC retention efforts will include Chula Vista companies in the survey, on-site visits, and interview process. 2.4 Promotional Materials. SCEDC promotional materials shall integrate information regarding Chula Vista assistance programs, development projects, special events, business trends, business support systems, demographics, amenities and other pertinent and general information as appropriate. 2.5 Public Relations. SCEDC's public relations efforts will proactively include Chula Vista program, activities and firms, including articles in the "Briefings" newsletter. ((MD)c:\wp51\document\599.96 (rev. April 10, 1997)] /¿)g-~ Page 2 "._......._....-.~,.., __ ___._,_._.__..'__.m__ Memorandum of Understanding 2.6 Public Policy. SCEDC's will proactively solicit Chula Vista public and private leaders to participate in public policy discussion forums and meetings, and Chula Vista involvement in the development of information to be distributed amongst policy makers, as well as the presentation of such information to the policy makers. 2.7 Trade Shows and Conferences. The SCEDC agrees to: 1) notify the Economic Development Division in advance of participation/exhibition at trade shows and conferences, 2) disseminate information regarding Chula Vista economic development efforts at the SCEDC booth, and 3) to encourage partnerships with Chula Vista in terms of shared space and/or co-staffing of the SCEDC booth. SCEDC also agrees to advise Chula Vista of opportunities to partner with SCEDC. 2.8 Trade Missions. The SCEDC will notify the Chula Vista Economic Development Division well in advance offoreign, out-of- city or out-of-state missions and of incoming business delegations and will invite Chula Vista representative( s) to participate. SCEDC will proactively seek and offer opportunities to Chula Vista to co-host these events, and to offer Chula Vista tours or receptions as appropriate. SCEDC will provide Chula vista with a list of the incoming delegation participants to facilitate follow-up by Chula Vista staff as appropriate, and will share all trade mission generated leads. 2.9 Quarterly Reporting. Coinciding with the Chula Vista fiscal year, July 1 to June 30, the SCEDC will make quarterly reports to the City (with each report due at the end of the quarter) utilizing the reporting format provided in Exhibit 1. By responding to each item on Exhibit 1, the SCEDC will provide information regarding its economic development activities which have taken place over the reporting quarter and highlighting the benefit to Chula Vista. Where no activities have taken place in a particular category, the item should simply be marked "Not Applicable." The standardized reporting format allows for the SCEDC (and other economic development entities receiving funding from the City) to provide the following information, as applicable: a. Names of all businesses that the SCEDC has assisted, broken out by recruitment, retention, and expansion assistance, and identifying each businesses' original location, and relocation jurisdiction and site (as applicable). This information should highlight Chula Vista businesses assisted, and include the name and title of the Chula Vista business contact and phone. b. Names of businesses that were referred to City of Chula Vista staff for local assistance; information concerning follow-up assistance provided to these clients by SCEDC; and final outcome of client assistance (e.g. site selection; etc.). c. Names of business clients personally shown Chula Vista sites by SCEDC; information concerning follow-up assistance provided to these clients by SCEDC; and final outcome of client assistance (site selection). d. Copies of all marketing materials produced by the SCEDC during the reporting quarter and identification of information included in these materials which promotes Chula Vista and/or specific Chula Vista amenities, events, projects, programs, businesses, services or other pertinent activities. Upon execution of this MOU, SCEDC shall provide Chula Vista a list of all existing PR materials currently available to clients, and shall make ICMD)c:\wp51\doc1..ment\599.96 (rev. April 10, 1997)] /tfJjJ'-tj' Page 3 .-....--..,,-.. " ..-.. -,~. -.-.-.--- Memorandum of Understanding available copies of these and of new materials as requested by the City on an ongoing basis. e. Listing of all marketing activities undertaken during the reporting quarter and an explanation of how Chula Vista was either represented and/or directly involved. This listing should include, but not be limited to: · Print advertising · Trade shows (exhibits) · Conferences/seminars (presentations and/or sponsorships) · Trade missions (both in-bound and foreign) · Business delegations/receptions · PR efforts to promote positive news coyerage · Newsletters · Press releases · Direct mail f. Quantification of all businesses visited as part of a SCEDC retention program, including respective names and locations, with Chula Vista businesses highlighted, and including the Chula Vista business contact name, title and phone. g. Identification of any business or other surveys conducted and explanation of how Chula Vista was represented and/or directly involved. h. Listing and description of any public policy forums and/or advocacy meetings held and explanation of how Chula Vista was represented and/or directly involved. i. Identification of any efforts made to promote utilization of regional firms for goods and services as part of the "Buy South bay" program and explanation of how Chula Vista businesses were directly involved and/or represented. j. Description of efforts to support Chula Vista-initiated economic development efforts and special projects that actively seek regional, state and/or federal funding and/or programmatic support, such as the High Tech/Biotech Zone and Western Regional BioProcessing Center; and Border Environmental Commerce Alliance, and the Hydrogen Fuel Cell Business Demonstration Program. Coinciding with the end of the Chula Vista fiscal year, the SCEDC will provide the City's Economic Development Manager with a copy of the SCEDC annual report. If the annual report is not yet available, the SCEDC will notify the Economic Development Manager as to when the report should be expected. The SCEDC agrees to respond to requests regarding the SCEDC budget. 3. Miscellaneous. 3.1 Hold Hannless. SCEDC 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 the conduct of the Consultant, or any agent or employee, subcon- tractors, or others in connection with the execution of the work coyered by this MOU, except only for those claims arising from the sole negligence or sole willful conduct of the City, its officers, or employees. SCEDC's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred [(MD)c:\wp51\Qocumenl\S99.96 (rev. April 10, 1997)] /¿Jß¿ Page 4 . .-.-...-......--.----. Memorandum of Understanding by the City, its officers, agents, or employees in defending against such claims, whether the same proceed to judgment or not. Further, SCEDC at its own expense shall, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. SCEDCs' indemnification of City shall not be limited by any prior or subsequent declaration by the SCEDC. 3.2 Tennination of MOU for Cause. If, through any cause, SCEDC shall fail to fulfill in a timely and proper manner SCEDC's obligations under this MOU, or if SCEDC shall violate any of the covenants, agreements or stipulations of this MOU, City shall have the right to terminate this MOU by giving written notice to SCEDC of such termination and specifying the effective date thereof at least five (5) days before the effective date of such termination. In that eyent, SCEDC shall be entitled to receiye just and equitable compensation for any services satisfactorily performed up to the effective date of Notice of Termination, not to exceed the amounts payable hereunder, and less any damages caused City by SCEDC's breach. 3.3 Independent Contractor City is interested only in the results obtained and SCEDC shall perform as an independent contractor with sole control of the manner and means of performing the services required under this MOU. City maintains the right only to reject or accept SCEDC's work products. SCEDC and any of the SCEDC's agents, employees or representatives are, for all purposes under this MOU, 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, 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 SCEDC shall be solely responsible for the payment of same and shall hold the City harmless with regard thereto. 3.4 General Provisions. This MOU constitutes the entire agreement between the parties with respect to the subject matter hereof and any and all other written or oral agreements with respect thereto are hereby superseded. This MOU may be executed in multiple counterparts which, taken together, shall constitute one agreement. [SIGNATURE PAGE FOLLOWS] (MD)c:\wp51\d0cument\599.96 (ntV. April 10, 1997» /éJLf~¡:' Page 5 --....-- n ___..__ ....____...__._____._. Memorandum of Understanding . :"':"-.IIr'=' HJ."'''''''''~''''''.W1.'''._>'N ;;'.~.~""" ru ~ø'-' Signature Page to the Memorandum of Understanding between the City of Chula Vista and the South County Economic Development Council in support of their mutually beneficial South bay development efforts. IN WITNESS WHEREOF, City and SCEDC have executed the Memorandum of Understanding thereby indicating that they have read and understand same, and indicate their full and complete consent to its terms effective as of July 1, 1996. SOUTH COUNTY ECONOMIC DEVELOPMENT COUNCIL Ctj fù¿- DATED:~;j /«('/ BY: : ~ . ,1997 Doug Perkins, Executive Director CITY OF CHULA VISTA BY: DATED: ,1997 John D. Goss, City Manager APPROVED AS TO FORM: BY: DATED: ,1997 John M. Kaheny, City Attorney . (MD)C:\wp51\document\599.96 (rev. April 14, 1997)) /¿Jß- ? Page 6 . .~. - "".;__, __m______,~._ '.__.__'_.U. ___'_'__'._n ---~--------- --- CHULA VISTA CHAMBER OF COMMERCE ACCREDITED OWIIU tJI =-.11tCI .........0..0......<1 0·....".....01....1 April 15, 1997 AN INVESTMENT IN THE FUTURE Mr. George Krempl Deputy City Manager City of Chula Vista BOARD OF DIRECTORS 276 Fourth Avenue President Chula Vista, CA 91910 Dave Ward President Elect Dear George: Brad Wilson Vice Presidents: We received a packet from the South County EDC, and JoAnne Clayton much to my dismay, the sheet for Chula Vista was missing. Jose Doria Dan Higgins We called them, and we got the same sheet as last year Bob Thomas complete with the same multiple errors. I have attached a . 'vIembers: photo copy of this undated and unidentified as to source ,enee Bardwell information. Please note that the City of Bonita is roughly Tom Davies Patti Davis half the size of Chula Vista. Susan Herney I'm asking again fo r someone to show me the benefit 0 f Kevin Kreutzer Tom McAndrews paying money to this organization; I am willing to learn. Berta Mensik Len Moore Sincerely, Scott Mosher Fran Muncie Chula Vista Chamber of Commerce Gary Nordstrom Robert Penner, MD Ben Richardson ~7 . Frank Scott ',~) Past President t~ is<----- Chris Lewis xecutive Director Executive Director Rod Davis Enclosure cc: Mayor Shirley Horton Councilman Jerry Rindone Councilman Steve Padilla Councilman John Moot Councilwoman Mary Salas /0 ß-~ 233 FOURTH AVENUE· CHULA VISTA. CALIFORNIA 91910· TEL. (619) 420-6603 ---,--- '--. ---- .-_--, ---~------._---_._-----_.--._._--~---- "'"·"'·;·"V.'.. ·'.··,.,.....","'·'··r Characteristics_~ns ^ Clt~ol pOPulatio~7 - 'v'Jf\\o'Õ San lego Median A. .4 ~~. " Households: ,01 ,..------..,. I' Projected Population-2015: 2Q8.0OQ Median Household Income:~~- Wf1.>~6 Average Family Size: 2.79 Infrastructure and City Services Pollee/Fire Service: Police Personnei Ratio: 1.2/1000 people Fire Personnel Ratio: .57/1000 people Transportation: 263.0 miles of Roads, Bus & Trolley Service Education: Chula Vista Elementary School District Sweetwater Union High School District Mexico Southwestern Community College ·c'r<r:. ! Municipal Revenue c-----............ . ,.., I Total Municipallncom . $55,000,000 .1- I/J (1('¡J¡'-. Fi [\ .;,..., ! Taxable Sales: c. ~./ I 1985: $547,568.000 ~ {W \()i? OAQ. I 1990: $1,049.602,000 ¡.J K VI:. t:. v' f'>S I 1994: $1.191,763,100 j 1 ,. Sources by Percentage 1. Sales Tax: 27.9% 2. Property Tax: 20% 2 3. Vehicle License Fees: 11.4% 4. Utility Users Tax: 6.2% 6 5. Gas Tax: 3.1 % 6. Intergov. & Other: 31.4% 54 Land Use --- --..... .r Vv~ V-,.\è lJ(, -7-) \1(:10 (\.~,.,v Total Land Ar~;'~I~;:n a,;res ./ c;,..... ~ \ .' T olal Assesse Nl'V..J ?~ ('l'è' .~.....-' ~6,765,841,955 j(.~\ ' Lan use-j\rperê,;.rt';;;~-- \\) f1J>' r (SANDAG 1990) 1. Residential: 44% 2. Commercial & Office: 7% 40% 3. Industrial: 6% 4. Parks & Recreational: 6% 5. Trans, Comm, Utilities, Education, and institutional: 8% 6. Agricultural, Vacant: 29% 1 2 3 4 5 , Housing Data 1i.J (7.'.:"2' Average;995: $218,994 Averag 95 ent: $619 Employment Information Sirlf ,/ ~ Employment by Sector: ·1 1. Service/Hotel: 27% c¡ð'2. Fin.,R.Estate,lns.: 5% 3. Wholesale, Retail Trade: 28% 4. Trans.,Comm.: 4% --- 5. Government: 13% . / 6. Mfg.,Const.: 23% / -' Chula Vista is the seco~.lárgest city in San Diego and Is home to the only year-round æ'c Training Center in the United States. Chuia Vista also boasts 60 shi marina, 3 golf courses, 30 parks, and a National Wildlife Refuge. City Is administering two economic development programs; the Border Environmental Commerce Alliance (BECA) offers services and office space to environmentally oriented companies, and the High Tech/Biotech Zone offers land cost write down, guaranteed water supply, and expedient permit processing for High Tech and Biotech compa- nies. Jtdj - 7 .- -----..-.-,.......--- .....-.----- COUNCIL AGENDA STATEMENT Item / / Meeting Date 4/22/97 ITEM TITLE: Resolution ) Z5 .? 3 7' Approving a three party agreement with Berryman & Henigar, and Village Development, L.L.C. to provide assessment engineering services for the formation of open space districts in the Otay Ranch and authorizing the Mayor to execute said agreement SUBMITIED BY, Di=tM ,fPubli, WMh rf'~ DEY1EWED BY, City M_&~ ,~ -'? (415"" Yo'"~ Y'U'oJ[) On November 19, 1996, the City Council approv~d the Tentative Map for portions of the Otay Ranch SPA One - Tract 96-04. The conditions of approval of said map require the formation, prior to approval of the first final map of: 1) the SPA One open space district, and 2) Otay Ranch Preserve maintenance district. Due to the magnitude of the proposed districts, and the requirements of the recently enacted Proposition 218, staff considered it necessary to retain an outside consultant to provide the necessary "assessment engineering" services for the formation of said districts. Staff requested proposals from nine qualified firms. Three proposals were received and it was determined that Berryman & Henigar was the most qualified and cost effective of the three consultants responding to the request for proposals. Therefore, staff recommends that Berryman & Henigar be retained as the "assessment engineer" for the formation of the two districts. RECOMMENDATION: That Council adopt the resolution and authorize the Mayor to execute said agreement. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Before advertising the Request for Proposals (RFP) for the proposed assessment engineering services, staff explored the alternative of having the work performed by City staff. This alternative was eliminated because staff has only limited experience in the formation of the open space districts of the size proposed for the Otay Ranch, especially under the new requirements imposed by Proposition 218. Additionally, the proceedings would take place during the period April to September 1997. During this time, staff must also carry out the time-consuming activities of preparing the annual collection report for the existing open space districts. It would not be cost effective to hire and train additional personnel to handle this peak of the work load. Having Berryman & Henigar on board will permit staff to meet other City obligations related to existing assessment districts and development impact fee programs. City staff will carry out the project management activities of the district formation to ensure that all activities are performed in a timely manner. It should be noted that, this week, staff anticipates to enter into a contract with Brown, Diven & Hentschke to provide legal counseling during the formation of the districts for a fee "not to exceed $10,000". This consultant is very familiar with the current development in Eastern Chula Vista. They have provided legal services to the City for the formation of the major open space districts in that area (Eastlake I and /J-J _,__._~_,__".____~~ _ ne__··_·····__··· _,_,____.___", Page 2, ItemL Meeting Date 4/22/97 Rancho del Rey Open Space Districts). In addition, they have been the "legal counsel" on all the existing assessment district formed to finance the construction of backbone facilities serving the major developments in the area. Chula Vista Municipal Code Section 2.56.220(C) specifies that contracts for services for $10,000 or less may be awarded by the Purchasing Agent on the basis of demonstrated competence and qualifications at fair and reasonable fees. Brown, Diven and Hentschke is proposing an hourly rate of $125, which staff considers reasonable and consistent with the rates normally charged by other specialized consultants. CONTRACT W/TH BERRYMAN & HEN/GAR 1. Contract Obiectives The scope of work of the contract consists ofthe following tasks: Task 1 Formation of the Otay Ranch Spa One Open Space District. This district will provide the funding necessary to perform the maintenance of the landscaping facilities and improvements to be constructed in SPA One. This district will maintain the medians and parkways along the backbone streets, open space lots, paseos, drainage channels, community gardens, and pedestrian bridges. The estimated annual maintenance budget at SPA One build out is approximately $2.0 million (1996 dollars). Attachment I presents a diagram of SPA One. Task 2 Formation of the Otay Ranch Preserve Maintenance District. This district will provide the funding necessary to perform the following activities: I) annual monitoring program over the entire area of the proposed preserve (11,375 acres) with an estimated average annual cost of $75,000, and 2) maintenance of the areas conveyed to the preserve at [mal map approval with an estimated average annual cost of $35 per acre of preserve. The estimated annual budget of the district at build out of the Otay Ranch is $450,000 (1996 dollars). Attachment 2 presents the area of the Preserve. Most of the existing open space districts in the City have been formed pursuant to the "Landscaping and Lighting Act of 1972" ("1972 Act"). In compliance with the Act, assessments have been levied on the parcels that receive a special benefit ITom the proposed improvements. The common practice was to assess all privately owned properties for the total maintenance cost. Publicly owned land was not assessed. Even though the "special benefit"criteria has always been a requirement of the "1972 Act", Proposition 218 now stipulates that a general enhancement of property value does not constitute a special benefit. Proposition 218 supersedes and significantly exceeds many of the existing requirements for imposing special assessments. These changes include: . Redefining the required "special benefit" as "a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large." //-2 .'_... ---- .-.. ..- _ _._~.._, .... M~_._.,.. _,",_,__,~,,_ Page 3, ltemL Meeting Date 4/22/97 * Providing that "no assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel". Publicly owned land shall not be exempt trom the assessment unless the agency can demonstrate by clear and convincing evidence that such publicly owned parcel in fact receive no special benefit. That portion of the district services which provide general benefits (as opposed to special benefits) should have a funding source other than assessments against properties within the districts. That other source may be the developer or the City. * Changing the majority protest provisions relating to assessments to a "ballot box" election. Upon tabulation, if more than 50% of the ballots (weighted by assessment amount) are opposed to the assessment, then the proposed assessment should be abandoned. * Shifting the "burden of proof' onto the local agency in any legal action contesting the validity of the assessments. * Making the assessments subject to the initiative process. Due to the above requirements and after consultation with several specialists in public financing, staff concluded that a "1972 Act" district may not be the most practical method to levy the total maintenance cost on the private properties. Improvements providing general benefit may need funding trom a different source (City, developer, etc.) and publicly owned parcels would have to be assessed. Therefore, staff has negotiated the scope of work (Exhibit A of the contract) to include 1) a thorough analysis of the ability of a" 1972 Act" district to fund the maintenance of the proposed improvements, and 2) identification and analysis of other financing mechanisms. The proposed scope of work for both districts (Tasks 1 and 2) is broken into two phases, as follows: Phase 1 - Review of Financin!! Alternatives. During this phase the consultant shall analyze various fmancing alternatives available to the City, including the Landscaping and Lighting Act of 1972 and the Mello-Roos Community Act of 1982. This will include a review of "special" versus "general" benefit to be provided based upon the newly enacted requirements of Proposition 218. The consultant shall perform the following activities: 1) provide an estimate of the funds that may be required trom the different funding sources (property owners, developer, City, etc.) under the different financing alternatives and review the results with City staff and legal counsel, 2) provide recommendations concerning any assessment or special tax on publicly owned lands within the district, 3) conduct a review of future administrative requirements for the district to ensure that it will provide the City with a stable source of funding for the maintenance of the improvements in the future, and 4) identify the pros and cons of each financing alternative and make a recommendation to the City regarding the "best" financing vehicle to provide a stable source of funding. Staff will present the report containing the conclusions and recommendations of said analysis to the City Council. Berryman & Henigar will be authorized to proceed with Phase 2 only after Council approval of the preferred financing mechanism. //-3 _.-. -- ---.-'"-... -.---. --"'--- " -"_.._~--,_.,_.. Page 4, Item f I Meeting Date 4/22/97 Staff is currently pursuing the preparation of a report that will analyze different alternatives available to the City (1972 Act, Mello-Roos, Homeowners Association) for funding the maintenance and operation of new open space districts proposed by new developments in the City (Otay Ranch, Sunbow II, Salt Creek Ranch, etc.). Staff expects to bring to Council consideration (in early May 1997) said report and a draft policy paper which would provide guidelines for the formation of new open space districts in the City. Depending on Council direction, it may be determined that certain activities of Phase I are not needed. Thus, staff has included a provision in the agreement which authorizes the City Engineer to notify Berryman & Henigar which specific activities will be required of Consultant. In the event the policy is not brought to Council consideration in a timely manner, the City Engineer may still authorize Berryman & Henigar to proceed with Phases I and 2 as outlined in the agreement. Phase 2 - District Formation. This phase will consist of the actual formation of the proposed open space districts in accordance with the financing mechanism selected in Phase 1. Two options are included in the contract for each of the districts, as follows; I) a "1972 Act" District, and 2) a Mello- Roos Community Facilities District. II. Consultant Selection Process Public Works - Engineering Division staff followed the City Municipal Code Section 2.56, Ordinance 2517, and Council Policy 102-05 in the Consultant selection process. As required, a Request for Proposal (RFP) was prepared by staff in accordance with the above mentioned Municipal Code, ordinance, and policy. The Request for Proposal was sent to 9 professional firms specializing in public financing and a notice was published in the Star News. The RFP included a scope of work and a description of the proposed districts. It should be noted that the RFP only required proposals for the formation of "1972 Act" districts. The option of forming Mello-Roos districts was included later, as result of discussions between the City and the three firms selected for the interviews. All three firms recommended a Mello- Roos district as a better alternative for funding the operation of open space districts. Each proposing firm was asked to provide: I) a statement of general qualifications; 2) names and qualifications of all key personnel to be used in the project, including any sub-consultants; 3) the location of the office where the work is to be performed; 4) experience in successfully managing a project of similar scope and magnitude, ability to complete the project on schedule and within budget, and 5) ability to work with agency input, review, and properly coordinate into the overall project completion. The RFP also indicated that the City would rank the proposals based on the following criteria: I. Past record or performance (Reference Evaluation). 2. Evaluation of personnel qualifications, including subconsultants if so indicated. 3. Capacity and resources to perform the work. 4. Fee proposal and pay schedule. 5. Proximity of office to San Diego County. //rY ~..__........_.. --"-~-_.._.._._" . . -- -~.._,- Page 5, ItemJL Meeting Date 4/22/97 A copy of the City's standard two-party agreement was also included in the RFP. The deadline for responding to the Request for Proposal was February 3,1997. Three firms formally responded to the RFP. These firms and proposed fees are the following: Consultant Fee I) WiIldan Associates $18,600 Munifinancial $34,500 Berryman & Henigar $54,000 I) Only includes the formation of"1972 Act" districts III. RFP Evaluation Process The selection committee as appointed by the City Manager in accordance with the City Municipal Code Section 2.56 consisted of the following members: Gerald J. Jamriska, Special Planning Projects Manager, Otay Ranch Jerry Foncerrada, Deputy Director of Parks Lombardo DeTrinidad, Civil Engineer The committee members were provided with individual copies of each one of the three responses and each member was charged with rating the proposals in accordance with the evaluation criteria. On February 20, 1997, the Committee interviewed the three firms. Each firm had 45 minutes for the interview of which 5 minutes were for set-up and introduction, 20 minutes for the presentation, 15 minutes for questions and answers, and 5 minutes for a closing statement. At the conclusion of the interviews, the Committee ranked the consultant firms as follows: Ranking Firm Total Points (max. 300 points possible) 1 Berryman & Henigar 268 2 MuniFinancial 221 3 Willdan Associates 186 The selection of Berryman & Henigar as the most qualified firm for the job was based on: 1) knowledge of the scope of work, 2) strongest project team, 3) excellent references, 4) excellent previous experience, and 5) presentation at the interview. MuniFinancial received a lower rating because their proposal did not include all the activities specified in the RFP. Their proposal did not include 1) a detailed technical proposal, and 2) the required identification and analysis of funding alternatives. They did not propose to analyze the formation of" 1972 Act" districts. Their proposal only included the formation of a Special Tax J/--S .---.- .-...._.-_._---~._.- II Page 6, Item_ Meeting Date 4/22/97 District (Mello- Roos) to fund the operation and maintenance of both districts (SPA One and Preserve). Willdan Associates was ranked third because they were generally nonresponsive to the RFP which required that they address the potential problems with Proposition 218 and provide new ideas on the subject. After the Selection Committee detennined that Berryman & Henigar was the most qualified finn for the job, staff became concerned about the proposed cost of $54,000 which was 56% higher than the proposal trom the second ranked finn, MuniFinancial. Staff met with Berryman & Henigar to discuss their proposal. A detailed review of the technical proposal provided the consultant with a better understanding of I) the type and extent of the improvements to be maintained by the proposed districts, 2) the scope of the services required by the City, and 3) the activities and/or infonnation to be provided by the City and the developer. As a result of these clarifications, the consultant was able to lower the proposed fee. Also, during these negotiations, it was agreed to include the option offonning Mello-Roos districts. The final negotiated fees are the following: Otay Ranch SPA One Option 1(1972 Act) Option 2(Mello-Roos) Review Financing Alternatives $ 3,500 $ 3,500 District Fonnation 11,000 11,000 ---------- ---------- TOTAL $14,500 $14,500 Otay Ranch Preserve Review Financing Alternatives $ 5,500 $ 5,500 District Fonnation 20,500 17,500 ---------- ---------- TOTAL $26,000 $23,000 The total negotiated fee for the fonnation of both districts pursuant to the "1972 Act" is $40,500 ($14,500 + $26,000) which is 25% lower than the fee originally quoted. Even though this fee is still $6,000 higher than the proposal by MuniFinancial, staffrecommends hiring Berryman & Henigar based on their better qualifications for this job, especially the following: * Knowled¡¡:e of the Scope of Work - Berryman & Henigar was the only finn that provided a detailed technical proposal meeting the requirements of the RFP. During the evaluation of the proposals and interviews, it was evident that only Berryman & Henigar had a good understanding of the job by providing detailed infonnation and new approaches to the fonnation of the districts. The proposal from the second ranked finn, MuniFinancial, was incomplete. They did not include the required "Review of Financing /j- ¿; ----_.~. ----'.-.._----------'- Page 7, Item1L- Meeting Date 4/22/97 Alternatives". This is an essential activity that in staff's opinion accounts for more than the $6,000 difference in the fees. * Proiect Team - Staff believes that Berryman & Henigar is proposing a technically stronger project team. This would ensure the soundness of the proposed assessments in the event of a legal challenge by the future property owners (Proposition 218 provides that the burden of proof is on the City). Village Development concurs with the selection of Berryman & Henigar as the most qualified firm to carry out the proceedings in an efficient and timely manner. V. The Aireement The proposed agreement (attached) with Berryman & Henigar uses the City's standard three-party agreement. This agreement proposes an arrangement by which the developer retains and is liable for the cost of retaining the consultant, who shall perform the services solely to and under the direction of the City. Under this agreement, they agree to perform the Scope of Work as outlined in Exhibit A. This section is extremely precise in order to insure that all of the City requirements are included in the fee. The compensation schedule is as follows: * Basic Services.- Consisting of the assessment engineering services necessary to accomplish the formation of the two open space districts (SPA One and Preserve). The final negotiated fees of $40,500 (" 1972 Act") or $37,500 (Mello-Ross) are lower than the quoted price in the firm's RFP response. Payment will be in phased amounts as detailed in Exhibit C of the contract. * Additional Services.- In addition to providing the basic services, the contract authorizes the City Engineer to approve additional services for both districts in an amount not to exceed $5,000 for both tasks. Staff considers that $5,000 is a reasonable amount to provide for attendance at meetings (with property owners, Chula Vista City Council, County of San Diego, and City of San Diego) not included in the "Basic Services". The formation of the Preserve Maintenance District will demand several meetings with the property owners and the different local agencies having jurisdictions on the proposed preserve area. Additional Services also include the preparation of any special exhibit or presentation board and any other unforeseen activity. These services shall be provided on a "time and material" basis at the rates set forth in the "Rate Schedule" of Exhibit C of the agreement. * Reimbursable Expenses - The contract also includes amounts "not to exceed $750" for the Otay Ranch SPA One Open Space District and "not to exceed $850" for the Otay Ranch Preserve Maintenance District. These amounts will provide for mailing, printing, postage, etc. 1/-7 ._~-_....--~._--,._"' ..-. _..-.__..,_._---~.- Page 8, ItemK Meeting Date 4/22/97 Berryman & Henigar has already submitted the signed agreement to the City. Staff has reviewed the agreement and recommends Council approval. The City Attorney has also reviewed the agreement and approved as to form. Currently, Berryman & Henigar has a 5-year contract with the City for assessment reapportionment services for an approximate annual amount of $17,500 (contract expires on May 22, 20(0). FISCAL IMPACT: None, the developer will provide all the funds required for the formation of the districts. The agreement require the developer to deposit with the City the amount required to pay for the serviees required of Berryman & Henigar (Exhibit C of the agreements). Staff would not issue the "notice to proceed"with any phase of the work, unless the corresponding deposit is already submitted to the City. If additional funding is needed, an amendment to the agreement (for the additional funding) will be submitted to the Council for approval. If the developer fails to provide the necessary funding, staff may stop the proceedings. The developer has also deposited with the City an initial amount of $15,000 to cover the staff time spent in project management. Additional deposits may be required if needed. Staff will assure that, prior to Council approval of the district formation, all City's cost are paid. Exhibits: 1 Otay Ranch Spa One NOT SCANNED 2 Otay Ranch Preserve NOT SCANNED 3 Agreement with Berryman & Hemgar April!? 1997 (10:43am) WPC M:\home\engineer\landdev\or24a.ldt j/-~ ...-....- -_...~...- ,--.------_.,--_. RESOLUTION NO. /ny; RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A THREE PARTY AGREEMENT WITH BERRYMAN & HENIGAR, AND VILLAGE DEVELOPMENT, L.L.C. TO PROVIDE ASSESSMENT ENGINEERING SERVICES FOR THE FORMATION OF OPEN SPACE DISTRICTS IN THE OTAY RANCH AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, on November 19, 1996, the City Council approved the Tentative Map for portions of the otay Ranch SPA One - Tract 96-04; and WHEREAS, the conditions of approval of said map require the formation, prior to approval of the first final map of: 1) the SPA One open space district, and 2) Otay Ranch Preserve maintenance district; and WHEREAS, due to the magnitude of the proposed districts, and the requirements of the recently enacted Proposition 218, staff considers it necessary to retain consultants specializing in public financing to conduct the proceedings; and WHEREAS, staff requested proposals from nine qualified firms to provide "assessment engineering" services for the proposed districts; and WHEREAS, three proposals were received and it was determined that Berryman & Henigar was the most qualified and cost effective of the three consultants responding to the request for proposals; and WHEREAS, therefore, staff recommends that Berryman & Henigar be retained as the "assessment engineer" for the formation of the two districts. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby approve a three party agreement with Berryman & Henigar, and Village Development, L.L.C. to provide assessment engineering services for the formation of open space districts in the Otay Ranch, on file in the office of the city Clerk as Document No. . BE IT FURTHER RESOLVED that the Mayor of the City of Chula vista is hereby authorized and directed to execute said Agreement for and on behalf of the City of Chula vista. Presented by Approved as to form by (A~~~~~~ Lippitt, Director of - city Attorney John P. John M. Kaheny, Public Works //-; --,-- . -.... ..-.... ---_._-- -----,...- õ ""'- ::¡ '" - \-- -:.- .~ r :::: ~ ~ ::¡~ .3 ;; < "'~ ~ ". "'0 .!- f!;f , '" I :n '" I J1 . " .' ~ - , ~. - 0 ~ - ~ ;). - .'0 '1:: r .--.-.-.... .........,.-. ..--.... Oh_.. _. . :.. 0 ~ .., I '" 2:~ '" "", ~ « I .. :r", g)0 Q \ 0 ;: " J.--""- '" "(. \ ~ \:11 \ o I. \ '" cnr-:;ï, .., ¡Q t...... \ . . '\JJ.......... 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Þ--t 78 IT 3 Three Party Agreement Between City of Chula Vista, Consultant, and Applicant For Consulting Work to be Rendered with regard to Applicant's Project 1. Parties This Agreement is made as of the reference date set forth in Exhibit A, for the purposes of reference only, and effective as of the date last executed by the parties hereto, between the City of Chula Vista ("City") herein, a municipal corporation of the State of California, the person designated on the Attached Exhib- it A as "Consultant" ("Consultant") whose business form and address is indicated on the attached Exhibit A, and the person designated on the Attached Exhibit A as "Applicant" ( "Applicant" ) whose business form and address is indicated on the attached Exhibit A, and is made with reference to the following facts: 2. Recitals, Warranties and Representations. 2.1. Warranty of Ownership. Applicant warrants that Applicant is the owner of land ( "Property" ) commonly known as, or generally located as, described on Exhibit A, Paragraph 1, or has an option or other entitlement to develop said Property. 2.2. Applicant desires to develop the Property with the Project described on Exhibit A, Paragraph 2, and in that regard, has made application ("Application" ) with the City for approval of the plan, map, zone, or other permits ("Entitlements" ) described on Exhibit A, Paragraph 3. 2.3. In order for the City to process the Application of Applicant, Work of the general nature and type described in Exhibit A, Paragraph 4, ("Work") will need to be completed. H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 1//r//-/2 Page 1 ._.._--~.-- ~..----..-.------------_.- 2.4. City does not presently have the II inhouse II staff or resources to process the application within the time frame requested for review by the Applicant. 2.5. This agreement proposes an arrangement by which Applicant shall retain, and be liable for the costs of retaining, Consultant, who shall perform the services required of Consultant by this Agreement solely to, and under the direction of, the City. 2.6. Additional facts and circumstances regarding the background for this agreement are set forth on Exhibit B; 3. Agreement. NOW, THEREFORE, IT IS MUTUALLY AGREED TO AND BETWEEN THE CITY, CONSULTANT, AND APPLICANT AS FOLLOWS: 3.l. Emplovment of Consultant bv ADDlicant. Consultant is hereby engaged by the Applicant, not the City, and at Applicant's sole cost and expense, to perform to, and for the primary benefit of, City, and solely at City's direction, all of the services described on the attached Exhibit A, Paragraph 4, entitled "General Nature of Consulting Services", ( "General Services"), and in the process of performing and delivering said General Services, Consultant shall also perform to and for the benefit of City all of the services described in Exhibit A, Paragraph 5, entitled "Detailed Scope of Work", ( "Detailed Services") , and all services reasonable necessary to accomplish said General Services and Detailed Scope of Work, and shall deliver such documents required ("Deliverables" ) herein, all within the time frames herein set forth, and in particular as set forth in Exhibit A, Paragraph 6, and if none are set forth, within a reasonable period of time for the diligent execution of Consultant's duties hereunder. Time is of the essence of this covenant. The Consultant does hereby agree to perform said General and Detailed Services to and for the primary benefit of the City for the compensation herein fixed to be paid by Applicant. H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 2 //-IJ .-.... "._,--".. _..._" '~'M ..,_,_.__._~." - ----.----.-.- In delivering the General and Detailed Services hereunder, the Consultant shall do so in a good, professional manner consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing under similar conditions and in similar locations, at its own cost and expense except for the compensation and/or reimbursement, if any, herein promised, and shall furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, machinery, equipment, printing, vehicles, transportation, office space and facilities, calculations, and all other means whatsoever, except as herein otherwise expressly specified to be furnished by the City or Applicant, necessary or proper to perform and complete the work and provide the Services required of the Consultant. 3.2. ComDensation of Consultant. Applicant shall compensate Consultant for all services rendered by Consultant without regard to the conclusions reached by the Consultant, and according to the terms and conditions set forth in Exhibit C adjacent to the governing compensation relationship indicated by a "checkmark" next to the appropriate arrangement, by paying said amount to the City, within 15 days of Applicant's billing, or in accordance with the security deposit provisions of Paragraph 3.3 and Exhibit C, if checked, and upon receipt of such payment by the City, City shall promptly, not later than 15 days, or in accordance with the Bill Processing procedure in Exhibit C, if checked, pay said amount to the Consultant. City is merely acting in the capacity as a conduit for payment, and shall not be liablecfor the compensation unless it receives same from Applicant. Applicant shall not make any payments of compensation or otherwise directly to the Consultant. 3.2.1. Additional Work. If the Applicant, with the concurrence of City, determines that additional services ( "Addi tional Services n ) are needed from Consultant of the type Consultant is qualified to render or reasonably related to the Services Consultant is otherwise required to provide by this Agreement, the Consultant agrees to provide such additional services on a time and materials basis paid for by Applicant at the rates set forth in Exhibit C, unless a separate fixed fee is H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 3 //-/1 .-....-. ._____. ......,·,.u....__.____._·_. otherwise agreed upon in writing for said Additional Work between the parties. 3.2.1.1. In the event that the City shall determine that additional work is required to be performed above and beyond the scope of work herein provided, City will consult with Applicant regarding the additional work, and if thereupon the Applicant fails or refuses to arrange and pay for said Additional Services, the City may, at its option, suspend any further processing of Applicant's Application until the Applicant shall deposit the City's estimate of the costs of the additional work which the City determines is or may be required. Applicant shall pay any and all additional costs for the additional work. 3.2.2. Reductions in Scope of Work. City may independently, or upon request from Consultant, from time to time reduce the Services to be performed by the Consultant under this Agreement. Upon doing so, City and Consultant agree to meet in good faith and confer for the purpose of negotiating a corresponding reduction in the compensation associated with said reduction. Upon failure to agree, the Fixed Fee may be unilaterally reduced by the City by the amount of time and materials budgeted by Consultant for the Services deleted. 3.3. Securitv for PaYment of Compensation bv ApDlicant. 3.3.1. Deposit. As security for the payment of Consultant by Applicant, Applicant shall, upon execution of this Agreement, deposit the amount indicated on Exhibit C as "Deposit Amount" with the City, as trustee for Consultant, the conditions of such trust being as indicated on Exhibit C and as hereinbelow set forth: 3.3.1.1 Other Terms of Deposit Trust. 3.3.1.1.1. City shall also be entitled to retain from said Deposit all costs incurred by City for which it is entitled to compensation by law or under the terms of this agreement. H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 4 //~ð --.-. -,---- -~..,--- .~.. . . -..---"----...-".._.__.0_____- 3.3.1.1.2. All interest earned on the Deposit Amount, if any, shall accrue to the benefit of, and be used for, Trust purposes. City may, in lieu of deposit into a separate bank account, separately account for said deposit in one or more of its various bank accounts, and upon doing so, shall proportionately distribute to the Deposit Trust, the average interest earned during the period on its general fund. 3.3.1.1.3. Any unused balance of Deposit Amount, including any unused interest earned, shall be returned to Applicant not later than 30 days after the termination of this Agreement and any claims resulting therefrom. 3.3.1.1.4. Applicant shall be notified within 30 days after of the use of the Deposit in any manner. Nothing herein shall invalidate use of the Deposit in the manner herein authorized. 3.3.1.1.5. At such time as City shall reasonably determine that inadequate funds remain on Deposit to secure future compensation likely due Consultant or City, City may make demand of Applicant to supplement said Deposit Amount in such amount as City shall reasonably specify, and upon doing so, Applicant shall, within 30 days pays said amount ( "Supplemental Deposit Amount") to City. Said Supplement Deposit Amount or Amounts shall be governed by the same terms of trust governing the original Deposit. 3.3.2. Withholding of Processing. In addition to use of the Deposit as security, in order to secure the duty of Applicant to pay Consultant for Services rendered under this agreement, City shall be entitled to withhold processing of Applicant's Application upon a breach of Applicant's duty to compensate Consultant. H:\home\engineer\landdev\bh agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 5 //,/? .--- _T..···_ _,_._,__"'" _ _,____.____.._ 4. Non-Service Related Duties of Consultant. 4.1. 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 categor- ies, 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: 4.1.1. Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 10. 4.1.2. Commercial General Liability Insurance including Business Automobile Insurance coverage in the amount set forth in Exhibit A, Paragraph 10, combined single limit applied separately to each project away from premises owned or rented by Consultant, which names City and Applicant as an Additional Insured, and which is primary to any policy which the City may otherwise carry ("Primary Coverage"), and which treats the employees of the City and Applicant in the same manner as members of the general public ("Cross-liability Coverage") . 4.1. 3. Errors and Omissions insurance, in the amount set forth in Exhibit A, Paragraph 10, unless Errors and Omissions coverage is included in the General Liability policy. 4.2. Proof of Insurance Coveraae. 4.2.1. Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 6 J/- /? .-.... - ---_._-~.._-_._-,~_...._....- ---. 4.2.2. 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 and Applicant demonstrating same. 4.3. Public Statements. All public statements and releases to the news media shall be the responsibility of the City and the Applicant. The Consultant shall not publish or release news items, articles or present lectures on the Project, either during the course of the study or after its completion, except on written concurrence of the City and Applicant. 4.4. Communication to ApDlicant. Consultant shall not communicate directly to the Applicant except in the presence of the City, or by writing an exact copy of which is simultaneously provided to City, except with the express consent of City. The Consultant may request such meetings with the Applicant to ensure the adequacy of services performed by Consultant. 5. Non-Compensation Duties of the ~DDlicant. 5.1. Documents Access. The Applicant shall provide to the Consultant, through the City, for the use by the Consultant and City, such documents, or copies of such documents requested by Applicant, within the possession of Applicant reasonably useful to the Consultant in performing the services herein required of Consultant, including but not limited to those described in Exhibit A, Paragraph 7. 5.2. ProDertv Access. The Applicant hereby grants permission to the City and Consultant to enter and access the Property, to take any borings, make any tests, conduct any surveys or reconnaissance necessary to deliver the Services of Consultant, subject to the approval of H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 7 //-/5 ,.,..-.----------,- --...-.-- - ---,_..,.-,-----"...._---, ...-..------.---.--.-.....--..------.- the Applicant. Consultant shall promptly repair any damage to the subject property occasioned by such entry and shall indemnify, defend, and hold Applicant harmless from all loss, cost, damage, expenses, claims, and liabilities in connection with or arising from any such entry and access. 5.3. Communication to Consultant. Applicant shall not communicate directly to the Consultant except in the presence of the City, or by writing an exact copy of which is simultaneously provided to City, except with the express consent of City. The Applicant may request such meetings as they desire with the Consultant to ensure the adequacy of services performed by Consultant. 6. Administrative ReDresentatives. Each party designates the individuals ("Administrators" ) indicated in Exhibit A, Paragraph 8, as said party's contract administrator who is authorized by said party to represent them in the routine administration of this agreement. 7 . Conflicts of Interest 7 .l. Consultant is Designated as an FPPC Filer. If Consultant is designated on Exhibit A, Paragraph 9, 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 his economic interests to the City Clerk on the required Statement of Economic Interests in such reporting categories as are specified in Paragraph 9 of Exhibit A, or if none are specified, then as determined by the City Attorney. 7.2. Decline to ParticiDate. 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 H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 8 1/- /7 -- -~.__... ",..,.."-".._--_._--," +,._-_._~_._--_.,..- know Consultant has a financial interest other than the compensation promised by this Agreement. 7.3. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an 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. 7.4. Promise Not to Acauire Conflictinq 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. 7.5. Dutv to Advise of Conflictinq 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. 7.6. Specific warranties Aqainst 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 the property which is the subject matter of the Project, or in any property within 10 radial miles from the exterior boundaries of the property which is the subject matter of the Project, or ( "Prohibi ted Interest") . H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 9 /1- 20 .>-..-. '~-'--"---"""-'-"----'--"~-'--'"---"-"-----'-+'...------.-. Consultant further warrants and represents that no promise of future employment, remuneration, consideration, gratuity or other reward or gain has been made to Consultant or Consultant Associates by Applicant or by any other party as a result of 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. 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. S. Default of the Consultant for Breach. This agreement may be terminated by the CITY for default if the Consultant breaches this agreement or if the Consultant refuses or fails to pursue the work under this agreement or any phase of the work with such diligence which would assure its completion within a reasonable period of time. Termination of this agreement because of a default of the Consultant shall not relieve the Consultant from liability of such default. 9 . City's Right to Terminate Pavrnent for Convenience. Documents. 9.l. Notwithstanding any other section or provision of this agreement, the CITY shall have the absolute right at any time to terminate this agreement or any work to be performed pursuant to this agreement. 9.2. In the event of termination of this agreement by the CITY in the absence of default of the Consultant, the City shall pay the Consultant for the reasonable value of the services actually performed by the Consultant up to the date of such termination, less the aggregate of all sums previously paid to H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 10 1/-cJ-/ ---... .__.._._~,._------ - ___"""_____'-__"n_'__ .---------..- the Consultant for services performed after execution of this agreement and prior to its termination. 9.3. The Consultant hereby expressly waives any and all claims for damage or compensation arising under this agreement, except as set forth herein, in the event of such termination. 9.4. In the event of termination of this agreement, and upon demand of the City, the Consultant shall deliver to the City, all field notes, surveys, studies, reports, plans, drawings and all other materials and documents prepared by the Consultant in performance of this agreement, and all such documents and materials shall be the property of the City; provided however, that the Consultant may retain copies for their own use and the City shall provide a copy, at Applicant's cost, of all such documents to the Applicant. 9 . 5 . Applicant shall have no right to terminate Consultant, and shall not exercise any control or direction over Applicant's work. 10. Administrative Claims Reauirement and Procedures No suit shall be brought arising out of this agreement, against the City, unless a claim has first been presented in writing and filed with the City of Chula Vista and acted upon by the City of Chula Vista in accordance with the procedures set forth in Chapter 1.34 of the Chula Vista Municipal Code, the provisions of which are incorporated by this reference as if set fully set forth herein. 11. Hold Harmless and Indemnification 11.1. Consultant to Indemnifv Citv and ADDlicant re In"iuries. Consultant shall defend, indemnify, protect and hold harmless the City, its elected and appointed officers and employees and Applicant from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the nealiaent conduct of the H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 11 / /- 2-d- .._...._-_..,---"-~--_...._~._~."-"....,-_.._-"- ~._---~"-- Consultant, or any agent or employees, subcontractors, or others of City or Applicant in connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole willful conduct of the City, its officers, or employees, or Applicant, Consultant's indemnification shall include any and all costs, expenses, attorneys' fees and liability incurred by the City, its officers, agents, or employees or Applicant in defending against such claims, whether the same proceed to judgment or not. Further, Consultant at its own expense shall, upon written request by the City or Applicant, defend any such suit or action brought against the City, its officers, agents, or employees or Applicant. Consultants' indemnification of City and Applicant shall not be limited by any prior or subsequent declaration by the Consultant. 11.2. ~Dlicant to Indemnify Citv re ComDensation of Consultant. Applicant agrees to defend, indemnify and hold the City harmless against and from any and all claims, losses, damages, expenses or expenditures of City, including its elected officials, officers, employees, agents, or representatives of the City ( 11 ci ty Indemni tees ") , in any way resulting from or arising out of the refusal to pay compensation as demanded by Consultant for the performance of services required by this Agreement. 12. Business Licenses Applicant agrees to obtain a business license from the City and to otherwise comply with Chula Vista Municipal Code, Title 5. Applicant further agrees to require Consultant to obtain such business license and to comply with Chula Vista Municipal Code, Title 5. 13. Miscellaneous. 13 .1. Consultant not authorized to ReDresent City. Unless specifically authorized in writing by City, neither Consultant nor Applicant shall have authority to act as City's agent to bind City to any contractual agreements whatsoever. H:\home\engineer\landdev\bh agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 12 //-d.-} .------ .._...._-_._.._._.._-~~.~--- 13.2. 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 for the parties in Exhibit A. 13.3. Entitlement·to Subseauent Notices. No notice to or demand on the parties for notice of an event not herein legally required to be given shall in itself create the right in the parties to any other or further notice or demand in the same, similar or other circumstances. 13.4. Entire Aareement. This Agreement, together with any other written document referred to or contemplated herein, embody the entire Agreement and understanding between the parties relating to the subject matter hereof. Neither this Agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. 13 .5. CaDacitv of Parties. Each signatory and party hereto hereby warrants and represents to the other party that it has legal authority and capacity and direction from its principal to enter into this Agreement; that all resolutions or other actions have been taken so as to enable it to enter into this Agreement. 13 .6. Governina Law/Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 13 //~c2f "-...--.- -- .-"_.._~~._._-'--_.__._--~-~-.....- in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance hereunder, shall be the City of Chula Vista. 13.7. Modification. No modification or waiver of any provision of this Agreement shall be effective unless the same shall be in writing and signed by the parties hereto, and then shall be valid only in the specific instance and for the purpose for which given. 13.8. Counterparts. This Agreement may be executed in more than one counterpart, each of which shall be deemed to be an original but all of which, when taken together shall constitute but one instrument. 13.9. Severability. In the event that any provision of this Agreement shall for any reason, be determined to be invalid, illegal, or unenforceable in any respect, the parties hereto shall negotiate in good faith and agree to such amendments, modifications, or supplements to this Agreement or such other appropriate action as shall, to the maximum extent practicable in light of such determination, implement and give effect to the intentions of the parties as reflected herein. 13 .10. Headinas. The captions and headings in this Agreement are for convenience only and shall not define or limit the provisions hereof. 13.11. Waiver. No course of dealing or failure or delay, nor the single failure or delay, or the partial exercise of any right, power or privilege, on the part of the parties shall operate as a waiver of any rights herein contained. The making or the acceptance of H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 14 //-~5 . .....-".-.-- . .---.- ---~---- a payment by either party with knowledge of the existence of a breach shall not operate or be construed to operate as a waiver of any such breach. 13 .12. Remedies. The rights of the parties under this Agreement are cumulative and not exclusive of any rights or remedies which the parties might otherwise have unless this Agreement provides to the contrary. 13.13 . No Additional Beneficiaries. Despite the fact that the required performance under this agreement may have an affect upon persons not parties hereto, the parties specifically intend no benefit therefrom, and agree that no performance hereunder may be enforced by any person not a party to this agreement. Notwithstanding the foregoing, this is a three party agreement and the City is an express third party beneficiary of the promises of Consultant to provide services paid for by Applicant. 13 .14. OwnershiD. Publication. ReDroduction 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. (End of Page. Next Page is Signature Page.) H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 15 J/~2? - _...'.,.'- --~--~_.- Signature Page Now therefore, the parties hereto, having read and understood the terms and conditions of this agreement, do hereby express their consent to the terms hereof by setting their hand hereto on the date set forth adjacent thereto. Dated: City of Chula Vista by: Attest: Beverly Authelet City Clerk Approved as to Form: John Kaheny City Attorney Dated: Consultant: / PeeerN,/tIJ II/,;w~tIh¿ bY'¿~~ Dated: Applicant: by: H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 16 ///27 -~..-.._.__.~.~----_.---~"..._._'-- Signature Page Now therefore, the parties hereto, having read and understood the terms and conditions of this agreement, do hereby express their consent to the terms hereof by setting their hand hereto on the date set forth adjacent thereto. Dated: City of Chula Vista by: Attest: Beverly Authelet City Clerk Approved as to Form: J~e~~ City Attorney Dated: Consultant: by: Dated: Applicant: -V /l..£.lt't.(I:! Oev E/.()(lM4'I r (.,1.,<: . by: ~~ y ¡2,frI I(¡l t:eN~ (lICe p~IDc-AJr H:\home\engineer\landdev\bh agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 16 //<25 ...,._._.,......._._-_.,........_..-._---~--- Exhibit A Reference Date of Agreement: Effective Date of Agreement: City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 Consultant: Berryman & Henigar Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation Address: 11590 W. Bernardo Court, Suite 100, San Diego, CA 92127 Applicant: Villacre DeveloDment. L.L.C. Business Form of Applicant: ( ) Sole Proprietorship ( ) Partnership (X ) Corporation Address: 11975 El Camino Real, Suite 104, San Diego, CA 92130 Attn: Kent Aden 1. Property (Commonly known address or General Description) : Otay Ranch is located in southwestern San Diego County approximately 3.5 miles east of downtown Chula Vista and 13 miles southeast of downtown San Diego. The properties span a distance of approximately 12 miles from east to west and 8.5 miles from north to south. The majority (approximately 13,000 acres) of the Otay Ranch is located within the unincorporated area of San Diego County; 9,059 Acres of the Otay Valley Parcel were annexed to the City of Chula Vista on March 29, 1997; the area situated in the Otay Mesa area H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 Page 1 Jj/;L( -_....~ .-- ."..-.--, - - -.-" ------.-...--.. --,. _._--,._~-_."-- 2 . Project Description ( II proj ect ") : The proposed project consists of the formation of the following open space districts in the Otay Ranch: 1. Otay Ranch SPA One Open Space District. This district will provide the funding necessary to perform the maintenance of landscaping facilities and improvements to be constructed within Otay Ranch SPA One. 2. Otay Ranch Preserve Maintenance District. This district will provide the funding necessary to perform the annual monitoring program and the maintenance of the land conveyed to the preserve (11,375 acres). 3. Entitlement applied for: The formation of the above mentioned open space districts is a condition of approval of the Tentative Map for portions of Otay Ranch SPA One - Tract #96-04. 4. General Nature of Consulting Services ("Services--General") : To provide assessment engineering services for the formation of the following open space districts in the Otay Ranch project: 1. Otay Ranch SPA One Open Space District. 2. Otay Ranch Preserve Open Space District. 5 . Detailed Scope of Work ("Detailed Services ") : BASIC SERVICES TASK 1 - OTAY RANCH SPA ONE OPEN SPACE DISTRICT Task 1. 1 - Project Kick-off Meeting B&H's Project Team will meet (one (1) meeting) with City staff, legal counsel and other team members to discuss the details of the project including the project approach, possible methods of H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 Page 2 //--Jt? ~----- ---..-".-.--..-.---. ____...._.. .,,__.,_,,__..'''n_·__····· financing, district boundaries and potential methods for spreading the cost to the benefitting property owners. Task 1. 2 - Collect Available Data Collect available data, such as, County Assessor information for each parcel, land use and zoning information, future development information, Assessor's parcel maps, description of improvements to be maintained by district, maintenance cost, budgets and other data which is pertinent to the project. Review and comment on the information received from the City, request additional information as required. Task 1. 3 - Review Financing Alternatives Based on the information provided, analyze various financing alternatives that are available to the City including Mello-Roos Community Facilities Act of 1982, and Landscaping Act of 1972 . This will include a review of "special" versus "general" benefit to be provided based upon the newly enacted requirements of Proposition 218. Consultant shall 1) provide an estimate of the funds that may be required from the different funding sources (property owners, developer, City, etc. ) under the different financing alternatives and review the results with City staff and legal counsel (one (1) meeting) , 2) provide recommendations concerning any assessment or special tax on publicly owned lands within the district, 3) conduct a review of future administrative requirements for the district to ensure that it will provide the City with a stable source of funding for the maintenance of the improvements in the future, and 4) identify the pros and cons of each financing alternative and make a recommendation to City staff regarding the "best" financing vehicle to provide a stable source of funding. TASK 1 (CONT.) USING OPTION 1 - LANDSCAPING AND LIGHTING ACT OF 1972 Task 1. 4 - Analysis of District Boundaries Review the improvements that will be operated and maintained within the district and determine which parcels will benefit from H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 Page 3 )//3/ '-_0-__----<---'-" - -.-....'. -..... ,_.._----_.~---_._--- those improvements. Analyze the use of benefit zones if improvements benefit only selected areas within the assessment district. Determine whether areas outside the boundaries of SPA One will benefit from improvements. Task 1. 5 - Review Maintenance Costs Estimates Berryman & Henigar will review the costs estimates prepared by the developer for the district to ensure that they reflect the true estimated costs of providing the services to be funded by the district. This will include an analysis of cash flows for the district for the first five years or until build-out. B&H will also work with City staff to develop estimates of administrative costs. Task 1. 6 - Development of the Benefit Spread Methodology Analyze and develop the benefit nexus between the parcels within the district and the improvements being maintained based upon the requirements of Proposition 218. Develop up to three (3) different benefit spread scenarios and review the results of them with City staff and legal counsel (one (1) meeting) . B&H understands that there may be changes in development densities within the project prior to build out. Incorporate the selected benefit spread methodology into the Preliminary Engineer's Report. Task 1. 7 - Prepare the Assessment Diagram Berryman & Henigar will prepare the assessment diagrams for the district as required to show the proposed boundaries including any zones of benefit in the format required by the San Diego County Recorders Office. Task 1. 8 - Draft Engineer's Report Based upon the selected assessment methodology, Berryman & Henigar will prepare a draft Preliminary Engineer's Report for the district for submission to the City. The reports will include a description of the improvements to be maintained within each benefit zone, detailed listing of the estimated operation H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 Page 4 J/~32 . ._.~-,.._" ---_.-"._--~.~---~_._.~._._--------- and maintenance costs, a discussion of the benefit spread methodology, the estimated maximum assessments proposed upon build-out for each parcel, a diagram of the district, and other documentation as required under the Act. Task 1.9 - Engineer's Report Berryman & Henigar will submit five (5) copies of the draft Preliminary Engineer's Report for the district for City staff review. After comments have been received from City staff, prepare and submit ten (10) copies of the final Preliminary Engineer's Report and Assessment Roll for the district for City Council proceedings. Task 1.10 - Resolution of Intention Berryman & Henigar will attend one (1) City Council meeting for Council consideration of the approval of the Preliminary Engineer's report and of the resolutions of intention to levy and collect assessments. Following adoption of the resolutions of intention for the district we will prepare the mailed notice and ballot to be sent to each assessable property owner. Task 1.11 - Prepare Notice/Ballot Berryman & Henigar will prepare and provide printing and mailing services to mail individual notices/ballots to property owners with time and place of hearing, and assessment amount. This will include printing of I to 2 page notices/ballots (to be approved by City Attorney) and mailing of the notice/ballot using window envelopes with only the name and address of each property owner showing. The assessment amount will be hidden from view. Task 1.12 - Tabulation of Protests Based upon the number of ballots received by the City, Berryman & Henigar will tabulate the percentage of protests received and submit the final percentages to the City prior to the end of the Public Hearing for the district. Task 1.13 - Public Meeting and Hearing H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 Page 5 //-33 ._.-..~-_.._.__.,.._-... . "_,.__.._._u._.._~_ _ _,._._.________~.,_.________._.__._.__._ Following adoption of the resolution of intention for the district, B&H will attend the public meeting (one (1) meeting) and the public hearing (one (1) meeting) considering the formation of the district. At the public hearing, Berryman & Henigar will make a presentation or provide testimony as requested by the City. Following the public hearing, Berryman & Henigar will make amendments or corrections to the Boundary Map, Assessment Diagram and Engineer's Report as ordered by the City Council pursuant to the hearing. Task 1.14 - Recordation of Boundary Map and Assessment Diagram B&H will record the Boundary Map and the Assessment Diagram with the responsible local official and the County Recorder as provided for under the Act. Task 1.15 - Delivery of Information to the City Deliver all final data, information, district diagram, and any other material produced under this agreement in computer digital files compatible with the software utilized by the City. Spreadsheets shall be compatible with Quattro Pro, database files with Paradox, word processing files with WordPerfect, and graphic files with AutoCAD. TASK 1 (CONT.) USING OPTION 2 - MELLO-ROOS COMMUNITY FACILITIES DISTRICT ACT OF 1982 Task 1. 4 - Prepare Boundary Map Prepare boundary map, with proper certification for a Community Facilities District, and confirm delivery of specified quantities of mylars and bluelines of the boundary map. Task 1. 5 - Provide District Description Review Engineer's metes and bounds legal description for the District boundary. Provide legal description for each parcel within the boundaries of the . proposed Community Facilities District. Task 1.6 - Review Maintenance Costs Estimates H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 Page 6 J/rJ1 --.---.... .,._,--- 0.. ... __~,__.._~.._____.~._.._"_._,., ._"._._______ Berryman & Henigar will review the cost estimates prepared by City staff for each district to ensure that they reflect the true estimated costs of providing the services to be funded by each district. This will include an analysis of cash flows for each district for the first five years. Task 1. 7 - Review Petition Verify and certify that the District initiation petition signatures are signed by property owners within the District boundary. Task 1. 8 - Prepare Community Facilities District (CFD) Report and Special Tax Formula Prepare CFD Report and furnish ten (10) of the final CFD Report as ordered by the Agency. In summary the report will include as requested by the Act: 1. Special Tax Formula 2 . A Description of the District 3 . A Description of Facilities 4. Cost Estimates 5 . A list of Property Owners Task 1. 9 - Resolution of Formation Attend public hearing (one (1) meeting) for Resolution of Formation and election. Task 1.10 - Recordation Assist in filing and recording of the public officer's report as required under the applicable act. Task 1.11 - Disclosure Form Prepare Disclosure form in two page format for the use by Agency. H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 Page 7 //-Jþ .~... _._-_.,..'".__.._--_...,~ .......-...."",...,..--..----.....-.-..----.--,..----. Task 1.12 - Delivery of Information to the City Deliver all final data, information, district diagram, and any other material produced under this agreement in computer digital files compatible with the software utilized by the City. Spreadsheets shall be compatible with Quattro Pro, database files with Paradox, word processing files with WordPerfect, and graphic files with AutoCAD. TASK 2 - OTAY RANCH PRESERVE MAINTENANCE DISTRICT Task 2.1 - Project Kick-off Meeting B&H's Project Team will meet with City staff, legal counsel and other team members to discuss the details of the project including the project approach, possible methods of financing, district boundaries and potential methods for spreading the cost to the benefitting property owners (one (1) meeting) . Task 2.2 - Collect Available Data Collect available data, such as, County Assessor information for each parcel, land use and zoning information, future development information, Assessor's parcel maps, proposed budgets for implementation of the annual biota monitoring program and maintenance of land(s) conveyed to the natural preserve and other data which is pertinent to the project. Review and comment on the information received from the City, request additional information as required. Task 2.3 - Review Financing Alternatives Based on the information provided, analyze various financing alternatives that are available to the City including Mello- Roos Community Facilities Act of 1982, and Landscaping Act of 1972 . This will include a review of "special" versus "general II benefit to be provided based upon the newly enacted requirements of Proposition 218. Consultant shall 1) provide an estimate of the funds that may be required from the different funding sources (property owners, developer, City, etc. ) under the different financing alternatives and review H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 Page 8 JI-3þ --...-. '-'---"- .-. ...~. "-.-. ~._.- ---.-.------.-------.- the results with City staff and legal counsel (one (1) meeting) , 2) provide recommendations concerning any assessment or special tax on publicly owned lands within the district, 3) conduct a review of future administrative requirements for the district to ensure that it will provide the City with a stable source of funding for the maintenance of the improvements in the future, and 4) identify the pros and cons of each financing alternative and make a recommendation to City staff regarding the "best" financing vehicle to provide a stable source of funding. TASK 2 (CONT.) USING OPTION 1 - LANDSCAPING AND LIGHTING ACT OF 1972 Task 2.4 - Analysis of District Boundaries Review the improvements that will be operated and maintained within the district and determine which parcels will benefit from those improvements. Analyze the use of benefit zones if improvements benefit only selected areas within the assessment district. Determine whether areas outside the boundaries of proposed district will benefit from improvements. Task 2.5 - Review Maintenance Costs Estimates Berryman & Henigar will review the cost estimates prepared by the developer for the district to ensure that they reflect the true estimated costs of providing the serviced to be funded by the district. This will include an analysis of cash flows for the district for the first five years or until build-out. B&H will also work with City staff to develop estimates of administrative costs. Task 2.6 - Development of the Benefit Spread Methodology Analyze and develop the benefit nexus between the parcels within the district and the improvements being maintained based upon the requirements of Proposition 218. Develop up to three (3) different benefit spread scenarios and review the results of them with City staff and legal counsel (one (1) meeting) . B&H understands that there may be changes in H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 //-51/38 Page 9 . ~,.,..--~,.._._,.- "_...".~.-----~----.. development densities within the project prior to build out. Incorporate the selected benefit spread methodology into the Preliminary Engineer's Report. Task 2.7 - Prepare the Assessment Diagram Berryman & Henigar will prepare the assessment diagrams for the district as required to show the proposed boundaries including any zones of benefit in the format required by the San Diego County Recorders Office. Task 2.8 - Consent and Jurisdiction Assist the City with the preparation of the "Consent and Jurisdiction" documentation for the City of San Diego and the County of San Diego. Task 2.9 - Draft Engineer's Report Based upon the selected assessment methodology, Berryman & Henigar will prepare a draft Preliminary Engineer's Report. The reports will include a description of the improvements to be maintained within each benefit zone, detailed listing of the estimated operation and maintenance costs, a discussion of the benefit spread methodology, the estimated maximum assessments proposed upon build-out for each parcel, a diagram of the district, and other documentation as required under the Act. Task 2.10 - Engineer's Report Berryman & Henigar will submit five (5) copies of the draft Preliminary Engineer's Report for the district for City staff review. After comments have been received from City staff, prepare and submit ten (10) copies of the final Preliminary Engineer's Report and Assessment Roll for the district for City Council proceedings. Task 2.11 - Resolution of Intention Berryman & Henigar will attend one (1) City Council meeting for Council consideration of approval of the Preliminary H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 Page 10 //<:1J .- .- --- -..,....--"---.....--.---..--------..-- Engineer's report and adopt the resolutions of intention to levy and collect assessments. Following adoption of the resolutions of intention for the district we will prepare the mailed notice and ballot to be sent to each assessable property owner. Task 2.12 - Prepare Notice/Ballot Berryman & Henigar will prepare and provide printing and mailing services to mail individual notices/ballots to property owners with time and place of hearing, and assessment amount. This will include printing of 1 to 2 page notices/ballots (to be approved by City Attorney) and mailing of the notice/ballot using window envelopes with only the name and address of each property owner showing. The assessment amount will be hidden from view. Task 2. 13 - Tabulation of Protests Based upon the number of ballots received by the City, Berryman & Henigar will tabulate the percentage of protests received and submit the final percentages to the City prior to the end of the Public Hearing for the district. Task 2.14 - Public Meeting and Hearing Following adoption of the resolution of intention for the district, B&H will attend the public meeting (one (1) meeting) and the public hearing (one (1) meeting) considering the formation of the district. At the public hearing, Berryman & Henigar will make a presentation or provide testimony as requested by the City. Following the public hearing, Berryman & Henigar will make amendments or corrections to the Boundary Map, Assessment Diagram and Engineer's Report as ordered by the City Council pursuant to the hearing. Task 2.15 - Recordation of Boundary Map and Assessment Diagram B&H will record the Boundary Map and the Assessment Diagram with the responsible local official and the County Recorder as provided for under the Act. H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 Page 11 / / ~ ÝC --." - ~_..,- '-.'--". ,.... - _.... 0' ___.n..__.______ ..~ Task 2.16 - Delivery of Information to the City Deliver all final data, information, district diagram, and any other material produced under this agreement in computer digital files compatible with the software utilized by the City. Spreadsheets shall be compatible with Quattro Pro, database files with Paradox, word processing files with WordPerfect, and graphic files with AutoCAD. TASK 2 (CONT.) USING OPTION 2 - MELLO-ROOS COMMUNITY FACILITIES DISTRICT ACT OF 1982 Task 2.4 - Prepare Boundary Map Prepare boundary map, with proper certification for a Community Facilities District, and confirm delivery of specified quantities of mylars and blue lines of the boundary map. Task 2.5 - Provide District Description Review Engineer's metes and bounds legal description for the District boundary. Provide legal description for each parcel within the boundaries of the proposed Community Facilities District. Task 2.6 - Review Maintenance Costs Estimates Berryman & Henigar will review the costs estimates prepared by City staff for each district to ensure that they reflect the true estimated costs of providing the serviced to be funded by each district. This will include and analysis of cash flows for each district for the first five years. Task 2.7 - Review Petition Verify and certify District initiation petition signatures are signed by property owners within the District boundary. Task 2.8 - Consent and Jurisdiction H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 J/-ý/ Page 12 .-... _.._....~ ___..._'.._n -----~--- Assist the City with the preparation of the "Consent and Jurisdictionl1 documentation for the City of San Diego and the County of San Diego. Task 2.9 - Prepare Community Facilities District (CFD) Report and Special Tax For.mula Prepare CFD Report and furnish ten (10) of the final CFD Report as ordered by the Agency. In summary the report will include as requested by the Act: 1. Special Tax Formula 2 . A Description of the District 3 . A Description of Facilities 4. Cost Estimates 5. A list of Property Owners Task 2.10 - Resolution of Formation Attend public hearing (one (I) meeting) for Resolution of Formation and election. Task 2.11 - Recordation Assist in filing and recording of the public officer's report as required under the applicable act. Task 2.12 - Disclosure For.m Prepare Disclosure form in two page format for the use by Agency. Task 2.13 - Delivery of Information to the City Deliver all final data, information, district diagram, and any other material produced under this agreement in computer digital files compatible with the software utilized by the City. Spreadsheets shall be compatible with Quattro Pro, database files with Paradox, word processing files with WordPerfect, and graphic files with AutoCAD. H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 Page 13 //-p "".".- - --"--_..--.-.-.._-"~ ---..- RESPONSIBILITIES OF THE CITY a. City to designate a responsible official to manage and coordinate the project. b. City shall make available to B&H all available data, information, reports, maps, plans, specifications, and other reasonable information for the proper performance of Berryman &Henigar services. c. City shall prepare (by bond counsel) all notices pertaining to the public hearings and post all notices pertaining the public hearings. d. City (by bond counsel) shall cause to be published all notices of public hearings or other meetings (i.e. , newspaper and posting) . e. City (by bond counsel) shall prepare all the required resolutions. f. All environmental documentation will be provided by others. g. City shall retain a qualified legal counsel to provide legal advice during the proceedings. h. City shall distribute the Engineer's Reports to property owners, assessment team, and any other parties. i. City to provide records of previous assessment obligation (if any) encumbering the proposed area of benefit. j. City shall schedule and agendize City Council meetings and hearings as required under the Act. k. City shall provide, in specified tape format, previous assessor's roll(if any). H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 //--0/3 Page 14 ..".--.-..--,..,",--.,-,,-.-- ADDITIONAL SERVICES a. Attend meetings at the request of the City in addition to meetings specified under Basic Services. b. Attend and make presentations at property owner meeting. c. Preparation of exhibits or presentation boards in addition to those specified under Basic Services. d. Any other services authorized by City. 6 . Schedule, Milestone, Time-Limitations within which to Perform Services. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement Dates or Time Limits for Delivery of Deliverables: Deliverable No. 1: Engineers Report or Community Facilities District (CFD) Special Tax report or SPA One open space district within 12 weeks after notice to proceed Deliverable No. 2 : Engineer's Report or Community Facilities District (CFD) Special Tax Report for the open space preserve within 14 weeks after notice to proceed Deliverable No. 3 : N/A Dates for completion of all Consultant services: August 1, 1997 7. Documents to be provided by Applicant to Consultant: (X) site plans ( ) grading plans ( ) architectural elevations (X) project description. (X) other: Time phased budget estimate for maintenance of open space H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 /I-tj{ Page 15 ... ·U^···..·_ ' .-,-. .__.._.__."-_..,....._--"-_.._--,~--- and preserve lands, base map in "DFX" format (AutoCADD) , legal descriptions (if required) 8. Contract Administrators. City: Clifford L. Swanson 276 Fourth Avenue Chela Vista, CA 91910 Applicant: Kent Aden 11975 El Camino Real, Suite 104 San Diego, CA 92130 Consultant: K. Dennis Klingelhofer 11590 West Bernardo Court, Suite 100 San Diego, A 92127-1622 9 . Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. Not an FPPC Filer. ( ) Category No. lo Inyestments 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. H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 J/r';j~ Page 16 .--_. .."--_.~_._..._... - -..... - _.__..~,_. .._~-_.,....,_.__....__.- ( ) 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. 10. Insurance Requirements: (X) Statutory Worker's Compensation Insurance (X) Employer's Liability Insurance coverage: $1,000,000. (X) Commercial General Liability Insurance: $1,000,000. ( ) Errors and Omissions insurance: None Required (included in Commercial General Liability coverage) . (X) Errors and Omissions insurance: $250,000 (not included in Commercial General Liability coverage) . H:\home\engineer\landdev\bh_a.ldt Exhibit A, Standard Form Three Party Agreement November 2, 1993 J/---;j? Page 17 --... .....,. ._...._-,.......,--"_...-..._.._._-------~.- Exhibit B to the Agreement between City of Chula Vista, Berryman and Henigar, and Village Development, L.L.C. Additional Recitals WHEREAS, On November 19" 1996, the Chula Vista City Council, pursuant to Resolution #18398-4 approved the Otay Ranch SPA One Tentative Map for portions of the Otay Ranch SPA One area - Tract #96-04: WHEREAS, the Otay Ranch SPA One Tract #96-04 Condition of approval #10 provides that: Prior to approval of each final \\B" map, the applicant shall comply with all the applicable requirements of the Phase 2 Resources Management Plan (RMP) as approved by the City Council on June 4, 1996 and as may be amended from time to time by he City. WHEREAS, the Otay Ranch SPA One Tract #96-04 Condition of approval #10.b provides that: Prior to approval of the first \\B" map, the developer shall: Request the formation of an Open Space District pursuant to the 1972 Landscaping and Lighting Act of 1972 for the Otay Valley Parcel of the Otay Ranch. This district shall be submitted to Council for consideration prior to approval of the first final B map. Maintenance of the open space improvements shall be accomplished by the developer for a minimum period of one year or until such time as ass accepted into the open space district by the Director of Parks and Recreation. If Council does not approve the open space district formation, some other financing mechanism shall be identified and submitted for consideration prior to approval of the first final map.... H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 Page 1 J/~f? --. ^ .- .-.-.-..--....-.--. '-~--'-"---'---"""-'-'-----~-'-- WHEREAS, the Applicant has requested the City to commence the proceedings for the formation of 1) the Otay Ranch SPA One Open Space District, and 2) the Otay Ranch Preserve Maintenance District; WHEREAS, the Applicant has deposited an initial sum for the processing of the request for proposals and formation of said districts; WHEREAS, public notice of the required assessment engineering services was published in a paper of general circulation, and direct invitation was sent to nine prospective Consultants to submit proposals to provide said services; WHEREAS, the City Manager appointed a selection committee which has in accordance with Chula Vista Municipal Code Section 2.56.230 recommended the above noted Assessment Engineering Consultant to perform the required services for the City, and WHEREAS, the City Engineer has negotiated the details of this Agreement in accordance with procedures set forth in Sections 2.56.220-224 of the Chula Vista Municipal Code; and WHEREAS, this Three Party Agreement has been drafted in compliance with Chula Vista Municipal Code Section 2.56.220 et seq. relating to purchases of engineering services. H:\home\engineer\landdev\bh_agree.ldt Standard Form Three Party Agreement November 2, 1993 //~fY Page 2 - --~~-----~~_......_,_."-_._.._----- 619451169-6194512846 BERRYMRN & HENIGRR 233 P02/06 RPR 03 '97 14:47 ExIu'bit C Compensation Schedule and Deposit: Terms and Conditions. Single Fixed Fee Agreement For the performlll\,Ce of all the Services as identified in ExJùbit A, Applicant shall pay the fixed fee in the amounts and at the times or milestones set forth herein below. Milestone Btlsic Sert1kø Amount Task 1- Otay Ranch SPA One· Open Space District Phase 1 Tasks 1.1 through 1.2 $2,500 Tasks 1.3 $1,000 Phase 2 Option 1 - Tasks 1.4 through 1.15 $11,000 Option 2 - Tasks 1.4 through 1.12 $11,000 Total- Open Space District $14,500 Task 2 - Otay Ranch Preserve Maintenance District Phase 1 Tasks 2.1 through 2.2 $4,500 Tasks 2.3 $1,000 Phase 2 Option 1 - Tasks 2.4 through 2.16 $20,500 Option 2 - Tasks 2.4 through 2.13 $17,500 Additional Sert1kø Additional Services as Authorized $5,000 Consultant hereby achnowledges that they City is currently pursuing the implementation of general policy which would provide guidelines regarding the fonnation of open space districts in the City. It is anticipated that said policy will be brought to Council consideration in early May 1997. Consultant acknowledges that depending on the directions received ITom Council, the City may eliminate Task 1.3 or Task 2.3 ITom the scope of work. Consultant shall not conunenc;e any work on this contract unless Consuhant has received a written notice to process trom the City Engineer stating which phases of Task I or of Task 2 will be required of the ConsuJtant. 3pty4-C.wp EJdúbit C, Compensation, to Three Party Agmt November 2, 1993 Page I //~ (c¡ --,--.-~- . . -~,_._..._---~-_._-.._---,.. ._--------~-- ._,," ------,-.---.. 519451159-5194512845 BERRYMRN & HENI5RR 233 P03/05 RPR 03 '97 14:47 Benyman & Henigar will invoice the City monthly for work completed during the previous month based on perccnt complete for each nùlcstone. City sha1I advise Berryman & Henigar of any dispute regarding the perccnt complete within 10 days of receipt of invoice. AIl undisputed invoiced sha11 be paid within 30 days of receipt. Reimbursable fees for mailing, printing, and postage are in addition to the jump sum fees shown above. Reimbursable fees shall not exceed $750 for Phase 1 - Otay Ranch SPA One Open Space District and $850 for Otay Ranch Preserve Maintenance District. Additional Services can be provided on a "time and material" basis as authorized in writing by the City Engineer for a mutually acceptable fee and in accordance with the rate schedule attached. For performance of the Additional Services of COD suit ant as herein required and authorized. Applicant shall pay Consultant for the productive hours of time and material spent by Consultant in the performance of said Services, at the rates or amounts set forth herein below not to exceed the amount shown ($5,000) without further authorization issued in writing and approve by the City Council. Rate Schedule Category of Employee Hourly of Consultant Name Rate PrinciDaJ Consultant Dennis KIin~elhofer 146 Senior Associate William HUlZhes 113 Senior Associate Jose.ph Francisco 113 Senior Analyst Lea Ann Brown OR Senior Analvst Catherine Shepherd 81 Analvst II Deborah Head 70 Word Processor m As Required 48 3pty4-C.wp Exhibit C, Compensation, to Three Party Agmt November 2, 1993 Page 2 //-s-?? ,.....~,..~_._--~.._--~-------- ~._-_._-_._..__.__. 619451169-6194512846 BERRYMAN & HENIGAR 233 P04/06 APR 03 '97 14:48 Cost or Rate (X) Materials Actual plus 15% Repons Copies (X) Mileage 31.5 centslnúle (X) Printing Actual plus 15% (X) Postage Actual plus 15% (X) Delivery Actual plus 15% ( ) Long Distance Telephone Charges Actual ( ) Other Actual Identifiable Direct Costs Actual --.---...... --- Deposit 00 Deposit Amount: Applicant shall subnút the following deposits to the City prior to the issuance of the "notice to proceed" of the corresponding phase: Phase 1 Task 1 (SPA One) $3,500 Task 2 (preserve) $5,500 Phase 2 ODtion 1 0l'tion2 (1972 Act) (Mello-Roos) Task 1 (SPA One) $11,000 $11,000 Task 2 (preserve) $20,500 $17,500 3pty4-C.wp Exhibit C, Compensation, to Three Party Agmt November 2, 1993 Page 3 //~f/ ......-. -_."'._~_.._--'_._-.-+._----- -_." 619451169-6194512846 BERRYMRN & HENI5RR 233 P05/06 RPR 03 '97 14:48 (X) Use of Deposit to Pay Consultant. Notwithstanding the sole duty and liability of Applicant to pay Consultant, ¡flms paragraph is "checked", upon City's receipt ofbüling by Consultant, and delemúnation by City in good faith that Consultant's billing is proper, a judgment for which Applicant agrees to hold City harmless and waive any claim against City, City shall pay Consultant's billing trom the amount of the Deposit. If Applicant shall protest the propriety of a billing to City in advance of payment, City shall consider Applicant's protest and any evidence submitted prior to the due date for the payment of said bill by Applicant in making its good faith detemùnation of propriety. ( ) Use of Deposit as Security Only; Applicant to Make Billing Payments. Upon detemúnation by City made in good faith that Consultant is entitled to compensation which shall remain unpaid by Applicant 30 days after billing, City may, at its option, use the Deposit to pay said billing. _______.....w__.._____ (X) Bill Processing: A. Consultant's Billing to be submined for the following period oftime: (X) Monthly ( ) Quarterly ( ) Other: B. Day of the Period for submission of Consultant's Billing: (X) First oflhe Month ( ) 15th Day of each Month ( ) End of the Month ( ) Other: C. City's Account Number: D. Security for Perfonnance ( ) Performance Bond, $ ( ) Letter of Credit, $ ( ) Other Security: 3pty4-C.wp Exlùbit C, Compensation, to Three Party Agmt November 2. 1993 Page 4 //:5:< .-u_ . ----..----- -..-.'. - _.-_._.._.._...-.._..,_.._--_._--~ 619451169-6194512846 BERRYMRN & HENIGRR 233 P06/06 RPR 03 '97 14:48 Type: Amount: $ (X) Retention. If this space is checked, then notwithstanding oÚJer provisions to the contrary requiring 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: (X) Retention Percentage: ~ ( ) Other: Retention Release Event ( ) Completion of all consultant services (X) Other: At the comnletion of each phase as shown on "milestone" table (~e 1 of Exhibit C) 3pty4-C.wp Exlùbit C, Compensation, to Three Party Agmt November 2, 1993 Page 5 //~ . .~._.____".~.,_____~__~,___"_.~,u_._.~__.____.~·__ --..... COUNCIL AGENDA STATEMENT Item /J-- Meeting Date 4/22/97 ITEM TITLE: Resolution / lr fp 1 ~pproving a tentative agreement with Southwestern College to exchange the Fire Station #4 site and other miscellaneous work for right-of-way dedication for the construction of the Otay Lakes Road dual left turn lanes project (STM-322) and authorizing the City Manager to execute the final agreement thereof on behalf of the City. SUBMITIED BY, D;=to, of Pub!;" w,"" ~ REVIEWED BY: City Manage~ ~ Oo¿' ~ (4/5ths Vote: Yes _ NoX) The FY 1996-97 Capital Improvement Program (CIP) budget contains a project to provide dual left turn lanes on Otay Lakes Road (north and south bound approaches) at East "H" Street and provide an additional through lane in each direction. To construct the project, it is necessary to obtain right-of-way ITom both the Sweetwater Union High School District (in ITont of Bonita Vista High School) and Southwestern College (in ITont of their vacant lot at the southwest comer of the intersection). A tentative agreement with the Sweetwater District to exchange right-of-way for the installation of a traffic signal at the high school's East H Street entrance and other miscellaneous work was approved by Council Resolution No. 18585 on February 25,1997 (Exhibit A). The City Manager's Office has reached a tentative agreement with Southwestern College's SuperintendentJPresident to exchange Fire Station #4 (on Elmhurst Street) and other miscellaneous street improvements for their right-of-way (Exhibit B). In order to complete the agreement, Council is requested to accept Southwestern College's requests and authorize the City Manager's office to final the agreement. RECOMMENDATION: The Council approve the tentative agreement and authorize the City Manager to execute a final agreement on behalf of the City to exchange Fire Station #4 (and other miscellaneous street improvements) for right-of-way dedication by Southwestern College. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Plans for the construction of the left turn lanes on Otay Lakes Road project are completed. The project has been advertised and staff will open bids on May 14, 1997. To construct the project, the City needed to obtain right-of-way ITom both the Sweetwater Union High School District and Southwestern College. The City Manager's Office met with representatives of both agencies to negotiate gratis dedication of the needed right-of-way. An agreement with the Sweetwater District was approved by the City Council on February 25, 1997 (Resolution No. 18585). !)-/ .'-'.,-- -.--.---.."...-.....,....,.------- Page 2, Item 11- Meeting Date 4/22/97 The item before Council tonight addresses issues raised by Southwestern College during the negotiations. Specifically, Southwestern College would like to exchange their right-of-way (approximately 21,382 sf, valued at $188,000) for Fire Station No. 410cated at the northeast comer of the Elmhurst StreetlOtay Lakes Road intersection and across from the College and valued at $150,000, plus the relocation ofa driveway and undergrounding of utilities valued at $38,000. The transaction would therefore, have equal value. However, the College is requesting a time table be established to relocate the fire station (to Paseo Ranchero and East H Street) within a 3 year period. During this period, the City would lease the facility from the College at one dollar per year. If the City is unable to relocate the facility within the 3 year period, the City would pay rent (at a fair market value) to the college thereafter. These conditions have been reviewed by the Fire Chief and were found to be acceptable. Plans for the construction of the new fire station will be prepared by Jeff Katz Architecture. Construction of the new fire station is tentatively scheduled for the winter and spring of 1998. Thus, staff is confident that the issues raised by Southwestern College would be accommodated within the 3 year period allocated for the relocation ofthe fire station. The appraisal of the values of the right-of-way and fire station were prepared by Lipman Stevens Marshall & Thene, Inc., who are currently under the annual contract to prepare appraisals for all right-of-way acquisition. The exchange is considered to be equal in value by both the City Manager's Office and Southwestern College SuperintendentlPresident. Therefore, staff believes that the tentative agreement obtained is in the best interest of both the City and the College. Since the Fire Station is owned by the City and the Southwestern College right-of-way is for a Trans DIF project, it is proposed that the Trans DIF project will pay the Public Facilities DIF $150,000 for the Fire Station since the Public Facilities DIF is responsible to relocate the Fire Station. FISCAL IMPACT: The value of the right-of-way to be obtained from Southwestern College is estimated to be about $188,000. In exchange for this right-of-way, the City will transfer ownership of the Fire Station No.4 site (valued at $150,000) to the College; underground utilities adjacent to the college's Otay Lakes Road frontage; and relocate one ofthe College's parking lot driveways at a cost of about $38,000. Sufficient funds to cover the $38,000 cost of these improvements were budgeted as part of the overall project. The Trans DIF will pay thePublic Facilities DIF $150,000 for the Fire Station. Exhibits: A - Council Agenda Statement NOT SCANNED B - Right-of-Way Plat NOT SC¡\¡~.F.D H:\HOME\ENGINEERIAGENDA\SWCFIRE.RS April 15. 1997 (5:11pm) ),)---:2- .-. - _._-~,..- - ~..._-----~. RESOLUTION NO. /n1j¿:; RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A TENTATIVE AGREEMENT WITH SOUTHWESTERN COLLEGE TO EXCHANGE THE FIRE STATION #4 SITE AND OTHER MISCELLANEOUS WORK FOR RIGHT-OF-WAY DEDICATION FOR THE CONSTRUC- TION OF THE OTAY LAKES ROAD DUAL LEFT TURN LANES PROJECT (STM-322) AND AUTHORIZING THE CITY MANAGER TO EXECUTE THE FINAL AGREEMENT THEREOF ON BEHALF OF THE CITY WHEREAS, the FY 1996-97 Capital Improvement Program (CIP) budget contains a project to provide dual left turn lanes on Otay Lakes Road (north and south bound approaches) at East "'H" Street and provide an additional through lane in each direction; and WHEREAS, to construct the project, it is necessary to obtain right-of-way from both the Sweetwater Union High School District (in front of Bonita vista High School) and Southwestern College (in front of their vacant lot at the southwest corner of the intersection); and WHEREAS, a tentative agreement with the Sweetwater District to exchange right-of-way for the installation of a traffic signal at the high school's East H Street entrance and other miscellaneous work was approved by Council Resolution No. 18585 on February 25, 1997; and WHEREAS, the City Manager's Office has reached a tentative agreement with Southwestern College's Superintendent/ President to exchange Fire station #4 (on Elmhurst Street) and other miscellaneous street improvements for their right-of-way; and WHEREAS, in order to complete the agreement, Council is requested to accept Southwestern College's requests and authorize the city Manager's office to final the agreement. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve a tentative agreement with Southwestern College to exchange the Fire station #4 site and other miscellaneous work for right-of-way dedication for the construction of the Otay Lakes Road dual left turn lanes project (STM-322) and authorizing the city Manager to execute the final agreement thereof on behalf of the city. Presented by Approved as to form by John P. Lippitt, Director of Public Works c: \rs\swcfire ),;2- J -----.'--.-......-..- ." __ ......_ n___._..~._,__,_..__........,_____ / " ., EXHIBIT A COUNCIL AGENDA STATEMENT Item J I 'f Meeting Date 2125/97 ITEM TITLE: Resolution / 8' 5~UthOrizing the expenditure of funds to install a traffic signal at the Bonita Vista High School East "H" Street entrance in exchange for right-of-way dedication for the construction of the Otay Lakes Road dual left turn lanes project (STM-322). SUBMITTED BY: Ð..,,,,,fP,bli, Wod" ~ REVIEWED BY: City ManagerJ~ tcr --.. (4/5ths Vote: Yes _ No-Xl The FY 96-97 Capital Improvement Program (CIF) budget contains a project to provide dual left turn lanes on Otay Lakes Road (north and south bound approaches) at East "H" Street and provide an additional through lane in each direction. To construct the project, it is necessary to obtain right-of-way from both the Sweetwater Union High School District (in front of Bonita Vista High School) and Southwestern College (in front of their vacant lot at the southwest comer of the intersection). Negotiations with both agencies are underway and we have reached a tentative agreement with the Sweetwater District. TIlls tentative agreement would require that the City commit to the construction of a traffic signal at the Bonita Vista High School East "H" Street entrance in exchange for the right-of-way, a change in scope from the Council approved CIF project. RECOMMENDATION: That Council direct staff to complete the plans and specifications for the installation of a traffic signal at the Bonita Vista High School East H Street entrance in exchange for gratis dedication of right-of-way by the Sweetwater Union High School District. BOARDS/COMMISSIONS RECOMMENDATION: The Safety Commission discussed this signal at its November 10, 1994 meeting and accepted staff's report regarding traffic concerns at Bonita Vista High School. The proposed signal location was evaluated and ranked lOth out of 15 intersections. The report was forwarded to Sweetwater District staff with the provision that the signal could be constructed in the event that the District chose to fund the installation costs (copy of the Safety Commission meeting minutes excerpt is attached). DISCUSSION: Plans for the construction of the left turn lanes on Otay Lakes Road project are about 90% complete. During the last few months, staff has met with representatives of the Sweetwater District and Southwestern College to obtain gratis dedication of right-of-way needed to construct the project. Meetings with Southwestern College staff are still going on and we expected to conclude in the next two months. We have obtained a tentative agreement with the Sweetwater District staff for the right-of-way that requires modification of the Council approved CIF project scope. /;2.-' { JÞf ...._..,--_..__.__..~ -----~_.._,---_._-- / Page 2, Item Meeting Date 2125/97 Specifically to obtain the needed 26,688 sq. ft. of right-of-way adjacent to Bonita Vista High School and accommodate the project, we would widen Otay Lakes Road to its ultimate width adjacent to the high school fÌ'om the intersection of East "H" Street to approximately 500 feet northerly, regrade the area of the campus immediately to the east of the new right-of-way line, install landscape and irrigation systems, construct a new alley-type driveway, erect a keystone retaining wall at the northeast corner of the intersection to make an ADA compatible entrance to the campus, relocate the school marquee, reconstruct the East "H" Street medians and restore the campus to an "equal or better" condition in the area affected by the proposed work. We estimate the value of this work to be about $400,000, all of which is required as part of the road project. In addition to this work, Sweetwater District staff has requested that a traffic signal be installed at the Bonita Vista High East "H" Street entrance. The cost of this traffic signal work is estimated to be about $125,000. Subject to Council approval of this traffic signal installation, we would be prepared to construct it either as part of the dual left turn lanes project or as a separate project at a later time. An appraisal of the value of the right-of-way required was prepared by Lipman Stevens Marshall & Thene, Inc., who are currently under the annual contract to prepare appraisals for all right-of-way acquisition. That appraisal, dated December 31, 1996 values the needed right-of~way at $235,000. Thus, if approved by Council, in exchange for the right-of-way, the City would cause to be installed improvements worth about $525,000 ($400,000 Street and $125,000 Traffic Signa,) adjacent to the Bonita Vista High School campus. These improvements would be of benefit to both the District and to the City. Schools in this area produce about 30% of the traffic, therefore, staff believes that the signal and project is a fair trade for the right of way. Funding for the installation of the traffic signal could be obtained fÌ'om the land acquisition allocation approved for the project and no additional appropriation of funds would be required. FISCAL IMP ACT: In addition to the improvement work adjacent to Bonita Vista High School (valued at about $400,000), the Sweetwater District would like to have a traffic signal installed at the school's East "H" Street entrance (valued at about $125,000) in exchange for gratis dedication of right-of-way (valued at about $235,000) needed to construct the project. Funds for the acquisition of right-of-way were budgeted for the project which are sufficient to cover the traffic signal installation costs. Therefore, the traffic signal could be installed in conjunction .with the originally budgeted left turn lanes project (STM322). Exhibit A Plat, Otay Lakes Rd. Dual Left Turn Lanes M:\homelengineerlagendalSTM322.rs B Excerpts - Safety Commission Minutes, 11/1 0/94 February 20,1997 (ll:2Iam) ø J02~ "__.·.·0 .._..._"-_.....~.._---,_.,_.._.~ - - -- --~--~-_.__.~..._~ I ~ I ~þ.S\ · N ~ \ · \ SCALE: \'=600' ~j I \~~-~ SOUTH'w'ESTERN \ \ COLLEGE I \ \ PARœ1. 1 PER PARŒl. NAP . 548! \ · \ SEE SHEET 2 \ \ I \ \ \ \ \ I \ ASSESSORS PARCEL NUMBER PARCEL ADDRESS 642-020-28 900 OTAY lAKES ROAD CHULA VISTA, CA 91911 OWNERS ADDRESS OWNERS 900 OTAY lAKES ROAD SOllTHWESTERN COMMUNITY COLlEGE DISTRICT. CHULA VISTA, CA 91911 FORMERLY KNOWN ÞS SWEÐWATER COMMUNITY COLlEGE DISTRICT. FORMERLY KNOWN ÞS SWEETWATER JUNIOR COLlEGE DISTRICT EXHIBIT "B " PROJECT RLE ISTM-322 TITLE: (¡, CITY DF CHUL VIST PREPARED BY: S!WI IWGJ /,2- RIGHT-[]F-\{AY ACGUISm[]N 1MB U -GWRU L . A V Y: AT mAY lAKES ROAD, ~ SIlJ'THVESTERN CIJlLEGE SHALE L.HANS[]N -."'-.....--".-....-. ..... ~_.,..~----~_.." --..-.- . COUNCIL AGENDA STATEMENT Iteml..:? Meeting Date 04/22/97 ITEM TITLE: Resolution ~~~f{ccePting bids and awarding contract for the purchase of one 12 Cubic Yard Dump Truck; and appropriating $43,061 from the Equipment Replacement Fund for this purchase. SUBMITIED BY: Director Of Public Works$? ~ Director of Finance ~ REVIEWED BY, CHy Mm",,j(¡ ~ L. (4I5<h, Vo'" Y,,-,,-No--' On February 12, 1997, the bids for the urch:e of one 12 Cubic Yard Dump Truck were opened. Sixteen prospective bidders were contacted, including local bidders. Five bidders responded, which did not include any local bidders. The lowest responsible bidder was Dion International with a net total price of $86,699.96. A summary of the bids submitted is shown in the table below: Bid #7-96/97,12 Cubic Yard Dump Truck RECOMMENDATION: That Council authorize the appropriation and award the contract to Dion International Truck. BOARDS/COMMISSIONS RECOMMENDATION: Not Applicable DISCUSSION: The FY 1996-97 Equipment Replacement Program provides for the replacement of a 1988 five (5) cubic yard dump truck for the Street Maintenance Division of Public Works. Rather than replacing it with another five yard dump truck, Public Works Operations is requesting that it be replaced with a 12 cubic yard dump truck which carries twice the load. Use of a larger dump truck will be more efficient because the City obtains its asphalt and recycles material at a location that is 17 miles from the corporation yard. The requested 12 yard dump truck will allow twice as much material to be either hauled 13~i ,~_._--- --,," _'n'. - - ..._-----~---_._----_.-. Page 2, ItemL2 Meeting Date 04/22/97 away or picked up with one trip. City crews make that trip four days a week, taking at least 1 hour for the round trip. Therefore, the larger truck will result in the following: 1. Costs Savinl!s: Each day the 5 yard dump has to make two trips to pick up the amount of material used during a days work. Therefore, there is one extra trip per day that will be eliminated if a 12 yard dump truck is purchased. This equates to the following savings: COST FOR 5 YARD VS 12 YARD DUMP TRUCK . Based on 52 weeks in a year, recognizing lhat a full 52 weeks per year might not be worked. These vehicles have a ten year replacement cycle, therefore the total estimated savings over the service life of the vehicle is $7,184 x 10 or $71,840. 2. Staff hours: Four days per week, the trucks make trips to pick up material. That driver is therefore not available to assist in the road repairs. Reducing the travel time by not having to make the second trip to the plant will free that driver to work on projects within the City. This equates to 4 x 52 or 208 hours per year. In addition, on Fridays, the dump trucks are used to haul all recycled materials from the "H" Street stock pile area to Sim J Harris. Use of two (the other street crew already has a 12 yd truck) 12 yard dumps will permit two workers to do other duties. Because both crews need a 12 yard dump truck at the same time, sharing the one truck on any type of regular basis is not possible or practical. Fridays are the day that the complaints received during the week are usually addressed. Work done on Fridays includes alley clean up, pot hole patching, weed abatement, and placement of wedges in uplifted sidewalk sections among other duties. This will provide 2 x 52 or 104 hours per year more time to address concerns within the City. Overall, it is estimated that 312 additional staff hours per year can be spent working within the City if the 12 yard dump truck is purchased. As you know, the City is increasing in size and the Street Division staff has been reduced over the last few years. Replacing the 5 yard truck with a 12 yard truck will help staff keep up with the maintenance needs of the City. 3. Reduced miles on the vehicle: Since the 12 yard dump truck would have to make one less trip to the plant each day, that equates to reduced mileage on the vehicle over the life of the vehicle of 34 miles (round trip distance) X 4 times per week X 52 weeks X 10 years. This will reduce the mileage on the vehicle over the replacement life of the vehicle by around 70,000 miles, which may prolong the replacement cycle, since the City's vehicles are replaced based on a mix of age, mileage, and life time maintenance costs. /3 /2- ._0" ,.....- --.-.-...-.--.- . ..-,,-. ... ---_..,-_.~-'".-._-- Page 3, Item!} Meeting Date 04/22/97 This change to a 12 yard dump truck will provide the best mix of vehicles to accomplish the Street Division's mission and provide cost effective service to our clients, the citizens of Chula Vista. ALTERNATIVE FUEL Alternative fueled vehicles were not offered by any of the bidders. FISCAL IMPACT Sufficient funds were not appropriated for this purchase. Therefore, an additional appropriation from the Equipment Replacement Fund of $43,061 is required. The amount currently appropriated from the Equipment Replacement Budget is $43,639. The total purchase price, including 7.75% sales tax, is $86,699.96. C:\WINWORD\BUDGET\Al1 3DUMP.DOC )3~3 -"--~,_._-------_..,.- RESOLUTION NO. /Y¿1// RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING BIDS AND AWARDING CONTRACT FOR THE PURCHASE OF ONE 12 CUBIC YARD DUMP TRUCK; AND APPROPRIATING $43,061 FROM THE EQUIPMENT REPLACEMENT FUND FOR THIS PURCHASE WHEREAS, on February 12, 1997, the following five bids were received for the purchase of one 12 cubic yard dump truck: BIDDER DUMP TRUCK SALES TAX NET TOTAL Miramar Ford Withdrawn Dion International $80,464.00 $6,235.96 $86,699.96 Pacific Freightliner $80,557.00 $6,243.17 $86,800.17 EW Truck & Equip $84,056.00 $6,514.34 $90,570.34 EW (Alternate) $86,964.00 $6,739.71 $93,703.71 Pressley Peterbilt $88,847.00 $6,885.64 $95,732.64 WHEREAS, the lowest responsible bidder was Dion International with a net total price of $86,699.96 and it is recommended that they be awarded the contract. NOW, THEREFORE, BE IT RESOLVED the City council of the City of Chula vista does hereby accept said five bids and award the contract to Dion International for $86,699.96 for the purchase of one 12 cubic yard dump truck. BE IT FURTHER RESOLVED that the Purchasing Agent is hereby authorized to execute said contract on behalf of the City. BE IT FURTHER RESOLVED that the amount of $43,061 is hereby appropriated from the Equipment Replacement Budget for said purchase. Presented by Approved as to form by John P. Lippitt, Director of Public Works c: \rs\du.ptruk /3~i -,-~---,-_.. ,_..._---,_.._"-,..__.~,.__._,_..__._---~- COUNCIL AGENDA STATEMENT Item: Æ Meeting Date: 4/22/97 ITEM TITLE: Public Hearing: GPA 97-02/PCZ 97-02 and PCM 97-18 - Request to: I) amend the General Plan from "Professional and Administrative Commercial" to "Retail Commercial;" 2) rezone from C-V-P (Visitor Commercial subject to precise plan) to C-C (Central Commercial) for .93 acres of land located at the southeast quadrant of H Street and 1-5 and 3) adoption of the "Gateway Plaza Specific Plan". - Baron Land LLC/City of Chula Vista. ß, Resolution )g¿Y~I) adopting the Negative Declaration issued for IS 97-16; 2) amending the land use designation of the General Plan from "Administrative and Professional Commercial" to "Retail Commercial" in accordance with Exhibit A attached thereto; 3) Adopt the "Gateway Plaza Specific Plan" in accordance with Exhibit B attached thereto. /}. Ordinance ..2??J ,?Changing the zone from C- V -P to C-C in accordance with Exhibit A attached thereto. SUBMITTED BY: Ð;rectoc of p"""",, ~ REVIEWED BY: City Manager~ ~ . --:;r- (4/5ths Vote: Yes_NoX) The proposal is to: I) amend the General Plan from "Professional and Administrative Commercial" to "Retail Commercial;" 2) rezone from "C-V-P" (Visitor Commercial subject to Precise Plan) to "C-C" (Central Commercial) for .93 acres of land located at the southeast quadrant of H Street and 1-5; and 3) adopt the "Gateway Plaza Specific Plan." The applicant, Baron Land LLC, owner of the westerly .43 acres of land presently containing the Gateway Plaza shopping center has expressed concerns with their ability to lease space to tenants under the current zoning which they consider to be restrictive. To maintain land use continuity, the City of Chula Vista has expanded the project area by an additional .5 acres to include the property immediately adjacent to the east (please see Attachment 2). The Environmental Review Coordinator conducted an Initial Study, IS 97-16, of potential environmental impacts associated with the implementation of the project. Based on the attached Initial Study and comments thereon, the Coordinator has concluded that there would be no significant environmental impacts and recommends adoption of the Negative Declaration issued on IS 97-16. /f-j __.0. _ ___.,.__ ,__._. ..___"_,.____~...~..__..,.___.."w_mw._'. Page 2, Item: 1'1 Meeting Date: 4/22/97 RECOMMENDATION: That Council hold the public hearing and adopt the Resolution and Ordinance approving the Rezone, General Plan Amendment and Specific Plan. BOARDS/COMMISSIONS RECOMMENDATION: The Planning Commission considered this project on April 9, 1997 and voted 6 to 0 (with one commissioner absent) to approve a resolution recommending that the City Council adopt the Negative Declaration for IS 97-16, and a resolution recommending that the City Council amend the General Plan, adopt a Specific Plan, and rezone the .93 acre project site. DISCUSSION: 1. Site Characteristics The project site consists of two rectangular shaped parcels totaling. 93 acres of land. The two properties encompassing the project are each fully developed at this time. The western-most site contains an existing 4,760 square foot commercial building along with 24 parking spaces. The other site contains an AM/PM gas station/mini-mart. There are no plans for any redevelopment of either site at this time. 2. Zoning and Land Use General Plan Zoning Current Land Use Site: Prof/Admin Comm. C-V-P Commercial/Gas Station/Mini-Mart North: Prof/Admin Comm. C-V-P Trolley Station/Parking South: Prof/Admin Comm. M-H-P Mobile Home Park East: Retail Comm. R-3 Apartments West: Pub/Quasi-Pub. C-V Trolley Tracks/I-5 3. Proposal General Plan Amendment The proposal consists of an amendment to the Land Use Diagram of the General Plan from "Professional & Administrative Commercial" to "Retail Commercial" for the project area. Rezoning The proposal involves a change of zone from "C-V-P" (Visitor Commercial subject to Precise Plan) to "C-C" (Central Commercial) for the project area. Adjacent zoning consists of "R-3" (Multiple Family Residential) to the east, "MHP" (Mobile Home Park) /Y-~ ____...".,·u·.·._ ~. -..-.,---...... -- - ~,.,._--~-------.-.- Page 3, Item: 1'1 Meeting Date: 4/22/97 to the south, "C-V" (Visitor Commercial) to the west and "C-V-P" to the north (S.D. Trolley Station site). The current "C-V-P" zoning is designed to pennit land uses which are oriented primarily to visitors and the travelling public (e.g., hotels, motels, restaurants, etc.); however, the zone does not accommodate a full range of retail commercial land uses. The existing zoning on the property also carries with it specific Precise Plan guidelines that apply to development of this property as a result of its location within a "gateway" to the City, as defined in the City's General Plan (please see analysis below). These existing guidelines include the following: A. Landscaping shall reflect the location of these properties as one of the designated gateways to the City. B. Future signing shall be oriented to H Street and be in keeping with the policies of the Scenic Highways Element. The proposed Specific Plan, described below, will assure that these important guidelines will still apply to the property after adoption of this zone change. Specific Plan The proposed "Gateway Plaza Specific Plan" has been prepared for consideration and is attached (please see Attachment 4). The primary goals of the draft Specific Plan are to: A. ensure the continued application of guidelines to the property aimed at enhancing the City's "gateway," B. recommend land uses which are considered most appropriate for the project site under the proposed C-C zone, and C. preserve the quality of life for those residents located within the adjacent mobile home park and apartments through the prohibition of land uses that are considered to be objectionable on the project site. 4. Analvsis General Plan/Zoning Consistencv The existing General Plan land use designation for the project site is "Professional and Administrative Commercial." The present zoning designation of C-V-P is inconsistent with the existing General Plan designation on the property. In addition, the property is located on H Street in an area described in Chapter 10 (Central Chula Vista Area Plan) of the General Plan as a "gateway" to the City. The proposed General Plan Amendment /7--3 .-,..--------------.-<..-----.-- Page 4, Item: J!L- Meeting Date: 4/22/97 is to change the land use designation to "Retail Commercial," consistent with the C-C (Central Commercial) zoning designation proposed for the property. This will result in consistency between the General Plan and the zoning designation for the property. The General Plan Amendment and Rezoning will result in the allowance of a greater range of land uses than are presently pennitted on the project site. These land uses will provide support for pedestrian-focused activities associated with the H Street Trolley Station located immediately north of the project site across H Street. This is consistent with the mix of retail, office and high density residential envisioned for the area surrounding the transit station as identified in the City's General Plan as well as the Land Use Distribution Element policies developed as part of the SANDAG Regional Growth Management Strategy. Land Use ComDatibilitv Issues/SDecific Plan ProDosal The most appropriate zoning classification to implement the proposed General Plan "Retail Commercial" designation and to enable the applicant to attract acceptable retail tenants is the C-C (Central Commercial) zone. While this zone is primarily structured to allow these use types, there are certain land uses pennitted in the C-C zone which are not suited for this site. Based upon concerns expressed by numerous residents of the Bison Mobile Home Park located directly adjacent to the south and also considering that the property is located within a "gateway" to the City, staff is recommending adoption of the draft "Gateway Plaza Specific Plan," designed to further control pennissible land uses on the project site so as to preserve the quality of life for those residents within the adjacent mobile home park and apartments, as well as provide an increased range of land uses at one of the City's "gateways." Consistent with Section 65450 of the State Planning and Zoning Law, this Specific Plan will be used as an implementation tool to ensure that the goals and policies of the General Plan are being upheld for this area. This Specific Plan would prohibit certain land uses such as bars and nightclubs which are detennined to be inappropriate for the above discussed reasons (please see Attachment 4). NOT SCANNED 5. Conclusion Staff recommends adoption of the proposed resolution and ordinances for the project site in accordance with the analysis above. FISCAL IMPACT: The applicant has paid for all processing costs associated with this application. J;I~Lj -......-.-..-- _"r' ___ _____.. _._._____+_.._ -....- Page 5, Item: JLf Meeting Date: 4/22/97 Attachments 1. Council Resolutions and Ordinances 2. Locator and Site Plan 3. Draft Planning Commission Minutes and Unsigned Resolution 4. Draft Specific Plan 5. Enviromnental Documents 6. Disclosure Statement )i~~ .,.---,- - --..,._-_._~._-----,- r. I I r.l....-,i"¡r:..i, I 2 \ 0 ~/~ \ '1<, ,- TROLLEY ~ STATION -z.. Ž S¢r:ï "" ."" 1:. 0 <6 \ ~ r' .,. PROJECT LOCATION MOBILE HOME PARK PROJECT SITE INFORMATION 'i Assessor's Percel Numbers " ~ 571-030-09 & 571-030-12 " <:. '" Zoning: . '" Existing:C-V-P (Visitor Commercial subject to Precise Plen) Proposed:C-C (Central Commercial subject to Specific Plen) General Pion: Existing:Professional and Administrative Commercial Proposed:Retail Commercial CHULA VISTA PLANNING DEPARTMENT LOCATOR PROJECT Gateway Plaza PROJECT DESCRJPnON, C) APPUCANT: GENERAL PLAN AMENDMENT PROJECT 720 & 730 H Street Request: Proposal lor General Plan Amendment from Professional & ADDRESS: Administrative Commercel to Retail Commercial, Rezone from C·V SCAlE: FILE NUMBER, (Visitor Commerc:ial) fa C-C (Retail Central Commerc:iaQ & Specific Plan. l NORTH No Scale GPA-97-02 Related Cases: 15-97-16, PCZ-97-02 & PCM-97-18 h:\home\plannlng\carlos\locators\gpa9702a.cdr 3/31/97 -1- /1-5 ~W -.-... ----....--.-..--. ORDINANCE NO. 027& ? AN ORDINANCE OF THE CHULA VISTA CITY COUNCIL AMENDING THE ZONING MAP OR MAPS ESTABLISHED BY SECTION 19.18.010 OF THE CHULA VISTA MUNICIPAL CODE REZONING .93 ACRES LOCATED AT THE SOUTHEAST QUADRANT OF 1-5 AND H STREET TO C-C WHEREAS, a duly verified application for a rezoning of a .43 acre site was filed with the Planning Department of the City of Chula Vista on January 16, 1997 by Barron Land LLD., and WHEREAS, the City of Chula Vista has expanded the project area by an additional .5 acres to include the property directly adjacent to the east resulting in a .93 acre project site requesting approval of a rezone from C-C-P (visitor Commercial) to C-C (Central Commercial), and WHEREAS, the Planning Commission held a public hearing on April 9, 1997 and voted lLto.12to recommend that the City Council enact an ordinance to rezone said Property to C-C (Central Commercial); and WHEREAS, the City Council set the time and place for hearing on said rezoning application 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 of the exterior boundaries of the property at least ten days prior to the hearing; and WHEREAS, the hearing was held at the time and place as advertised, namely 6:00 p.m., Yi'1., I.:, in the Council Chambers, 276 Fourth Avenue, before the City Council and said hearing as thereafter closed; and WHEREAS, the Environmental Review Coordinator has concluded that there would be no significant environmental impacts and recommends adoption of the Negative Declaration issued on IS 97-16. WHEREAS, section 19.18.010 of the Municipal Code authorizes changes to the City of Chula Vista Zoning Map; and NOW, THEREFORE the City Council of the City of Chula Vista does hereby find, determine, and ordain as follows: SECTION I: Environmental The City Council finds that the project would have no significant environmental impacts and adopts the Negative Declaration issued on IS 97-16. IYß-/ __m"- .._~_.. --,--- --. -- .-~...,_._---_.._-----.._._------_..- SECTION II: Findings The City Council finds that the rezoning is consistent with the City of Chula Vista General Plan as amended concurrently and Specific Plan known as the "Gateway Plaza Specific Plan" as added concurrently with this action and that the public necessity, convenience, general welfare, and good zoning practice support the rezoning to C-C. SECTION III: Rezoning The City of Chula Vista Zoning Map is hereby amended to rezone the Property to C-C "Central Commercial" as shown on the Exhibit attached hereto. NOT SCANNED Presented by Approved as to form by Robert A. Leiter ~~~ John M. Kaheny Director of Planning City Attorney (h:\home\planning\jeff\ccresp\rez.gat) J7/9~';¿ - __n ...._______. -_._.,-,...__.__._,.._.--_.._---_._-~- RESOLUTION NO. / g-~ ~J.. RESOLUTION OF THE CITY OF CHULA VISTA CITY COUNCIL AMENDING THE GENERAL PLAN AND ADOPTING A SPECIFIC PLAN KNOWN AS GATEWAY PLAZA GOVERNING THE LAND USES OF .93 ACRES AT THE SOUTHEAST QUADRANT OF H STREET AND 1-5 WHEREAS, Baron Land LLC, filed an application for a General Plan Amendment with the Planning Department of the City of Chula Vista on January 16, 1997, and WHEREAS, said General Plan Amendment application requested that .43 acres located at the southeast quadrant of H Street and 1-5 be redesignated from "Professional and Administrative Commercial" to "Retail Commercial", and WHEREAS, the City of Chula Vista has expanded the project area by an additional .5 acres to include the property directly adjacent to the east and include consideration for a Specific Plan to further restrict allowable uses under the proposed C-C (Central Commercial) zoning, and WHEREAS, the General Plan Amendment and Specific Plan will cover the area as shown on Exhibit "A" (the Property) attached hereto, and WHEREAS, said Specific Plan application requested that a Specific Plan known as "Gateway Plaza Specific Plan" attached hereto marked Exhibit "B", be adopted governing the allowable land uses of the Property; and WHEREAS, the Planning Commission held a public hearing on April 9, 1997 and voted _to_ recommend that the city Council approve the General Plan Amendment and adopt the "Gateway Plaza Specific Plan" for the Property; and WHEREAS, the City Council set the time and place for a hearing on said rezone application 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 and residents within an area greater than 500 feet of the exterior boundaries of the property at least 10 days prior to the hearing in accordance with Government Code Sections 65358, 65090 and 65091(a)(l) and (2) and Chula Vista Municipal Code Section 19.06.010, 19.07.010 and 19.12.070; and WHEREAS, an Initial Study (Case No. IS 97-16), was prepared for the proposed project; and WHEREAS, the Environmental Review Coordinator recommends the adoption of a Negative Declaration for the proposed project; and WHEREAS, the General Plan has not been amended more than three (3) times this calendar year; and WHEREAS, the hearing was held at the time and place as advertised, namely 6:00 p.m. in the Council Chambers, 276 Fourth Avenue, before the City Council and said hearing was thereafter closed. NOW, THEREFORE BE IT RESOLVED THAT from the facts presented to the City Council, the Council finds that this project would have no significant environmental impacts and adopts the Negatiye Declaration issued on IS 92-35. I'IE - / ~~. . _.._.,._......__.__.._""-,._-_._-~~-"--_._~.._..- ..-.-,..._~ ~--,_.._,-"---- BE IT FURTHER RESOLVED THAT the City Council approyes the amendment to the Land Use Element of the General Plan designating the Property as "Retail Commercial". BE IT FURTHER RESOLVED THAT from the facts presented to the City Council, the Council determines that the "Gateway Plaza Specific Plan" attached hereto marked Exhibit "B" is consistent with the General Plan of Chula Vista as currently amended by this resolution as document # _. BE IT FURTHER RESOLVED THAT the City Council of the City ofChula Vista does hereby adopt the "Gateway Plaza Specific Plan". Presented by Approved as to form by C'Á ~ n~ ~ Robert A. Leiter John M. Kaheny Director of Planning City Attorney Jtß- ;¿ . .--....,-. .-..._~_._---" - ,-.,"'---.-..----.---. \ \ TROLLEY STATION 5íí'-'Õ~ 'r\' - -- i:. 0 cr, \. ž \" - - - ?,?,O.?," ~ % <:. rn >J' h:\home\planning\carlos\carlos\zoning\pcz9702 3/28/97 CASE NUMBER: CHULA VISTA PLANNING DEPARTMENT PCZ-97-02 ACREAGE: I HEREBY CERTIFY THAT THIS ZONING MAP .93 WAS APPROVED AS A PART OF ORDINANCE SCALE: No Scale BY THE CITY COUNCIL ON DATE: March 28, 1997 CITY CLERK DATE DRAWN BY: C, T. FCmfl.IIMZ C) ~I~ ZONING MAP - 483 -.L_ J'ß -:J CHECKED BY: em OF OiUlAVISTA NORTH ----"'...-..-..........- ---'-'~_. _ _.__..,._._~_ ,,____·..-·_._.._..h,"__ -- EXHIBIT A \ \ \ 0 \ ~ r- TROLLEY ~ STATION' -Z- Ž 5íR<.€I '" .\'\' Z. 0 ~ \ ~ \" .,. ." .,. -p .-I -;. '" PROJECT LOCATION MOBILE HOME PARK '; ; \ <:. '" '" \ CHULA VISTA PLANNING DEPARTMENT LOCATOR PROJECf Gateway Plaza PROJECT DESCRlPnON, C) APPLICANT, GENERAL PLAN AMENDMENT PROJECf 720 & 730 H Street Request: Proposol for General Plan Amendment from Professional & ADDRESS, J7"ß ~ J Administrative Commercial to Retail Commercial, Rezone from C~V SCALE, I FILE NUMBEIò (Visitor Commercial) to C-C (Retail Central Commercia~ & Specific Pion. L NORTH No Scale GPA-97-02 Relo1ed Cos.., 15·97-16. PCZ-97-02 & PCM-97.18 h:\home\plannlng\carlos\locatars\gpa9702a.cdr 3/31/97 __.___"__.._____.__M'____~___~~.._ EXHIBIT B GATEWAY PLAZA SPECIFIC PLAN I. INTRODUCTION A. Backl!I'ound The Gateway Plaza Specific Plan encompasses two parcels totaling. 93 acres located near the southeast quadrant of "H" Street and Interstate 5 freeway as shown on the attached Specific Plan map marked Exhibit 1. The Specific Plan area is designated as a "gateway" in the Chula Vista General Plan. The two parcels were zoned C-V-P (Visitor Commercial subject to a precise plan) until the rezoning to C-C (Central Commercial) concurrently with the adoption of this specific plan. B. PurDose of the SDecific Plan The purpose of the specific plan is to allow the properties to be utilized for retail commercial and other commercial uses on a more restricted scale than would otherwise be permitted under the CC zone. These restrictions are in recognition of the various constraints affecting the site (including existing surrounding land uses) and in keeping with its prominent location as a "gateway" to the City of Chula Vista. The adoption of this specific plan was preceded by an amendment to the Land Use Diagram of the General Plan designating the site "Retail Commercial" and rezoning both parcels to C-C (Central Commercial). While the General Plan redesignation of the site and rezoning would constitute sound urban planning practice, the relatively small size of the site, its proximity to residential development, and its location as a "gateway" to the City suggest that a specific plan for the site is appropriate. The specific plan process is designed to promote higher levels of land use innovation and design flexibility than the City's conventional zoning regulations by tailoring the proposed land uses to the site and establishing height and bulk standards sensitive to its location, size and configuration. C. Government Code Authoritv The specific plan implementation of a general plan is authorized under Title 7 of the California Government Code, Chapter 3, Article 8 and Chapter 19.07 of the Chula Vista Municipal Code. ¡~./3 -Lf - ---_._-_.~~-,.,-~-~,-_._~.._.,-~_..__....~----_..- II. SPECIFIC PLAN A. Goals and Obiectives 1. Goals: The implementation of the Chula Vista General Plan and its several elements, and the promotion of land uses which are compatible with the existing and proposed surrounding areas adjacent to the site. 2. Objectives: The following embodies the general objectives of the Gateway Plaza Specific Plan: a. To ensure the continued application of guidelines to the property aimed at enhancing the City's "gateway." b. Recommend land uses which are considered most appropriate for the project site under the proposed C-C zone, and c. Preserve the quality of life for those residents located within the adjacent mobile home park and apartments through the prohibition of land uses that are considered objectionable on the project site. d. To allow existing uses on the site to continue including possible renovations and upgrades subject to all other provisions and requirements of the Chula Vista Municipal Code. B. General Descriotion of the Soecific Plan The Gateway Plaza Specific Plan, prepared in accordance with Section 65450 et. seq. of the State Planning and Zoning Law and Chapter 19.07 of the Chula Vista Municipal Code, proposes to guide the land uses allowed on the properties at the southeast quadrant of the intersection H Street and Interstate 5. C. Relationshio to the Municioal Code Other than items specifically listed in this specific plan, all other development standards and procedures shall comply with the provisions of the Chula Vista Municipal Code Title 19, most specifically Chapter 19.38 (attached for reference) and other applicable City standards and regulations. NOT SCANNED /Yß~5 .--..-... ._--_._~ .--_._-_.._~.._-"._._..._."._. -'-'--"-~-' D. Land Uses 1. Recommended Uses A. Permitted Uses 1. General Retail 2. Specialty Shops 3. Restaurants (Seating restricted based upon parking provided on-site and available to the restaurant) B. Conditional Uses (Zonin!! Administrator) 1. Service Station 2. Mini-mart (in conjunction with service station) 3. Permitted uses under the C-C zoning designation which include the sale of alcoholic beverages for off-site use or consumption on-site. 2. Prohibited Uses A. Beer bars B. Card rooms C. Athletic clubs (large) D. Bars (drinking places) E. Body conditioning clinic F. Cocktail lounge (primary use) G. Dancing-nightclubs H. Dance halls I. Liquor stores J. Video Arcades K. Amusement Centers L. Medical clinics (allowing walk-in patients) M. Treatment Centers N. Pool Rooms/Billiard Parlors E. SDecific DeveloDment Guidelines 1. Landscaping shall reflect the location of these properties as one of the designated gateways to the City. 2. Future signing shall be oriented to H Street and be in keeping with the policies of the Scenic Highways Element. /Yj?~~ .-.. _··._·,._.'..__n....._".._.__.._~____.____._._._.________ ATTACHMENT 3 Excerot From Unapproved Planning Commission Meeting Minutes of April 19. 1997 ITEM 1: PUBLIC HEARING: GPA-97-02/PCZ-97-02 AND PCM-97-18; REQUEST 1) AMENDING THE GENERAL PLAN FROM "PROFESSIONAL AND ADMINISTRATIVE COMMERCIAL" TO "RETAIL COMMERCIAL", 2) REZONING FROM C-C (CENTRAL COMMERCIAL) FOR .93 ACRES OF LAND LOCATED AT THE SOUTHEAST QUADRANT OF "H" STREET AND 1-5, AND 3) ADOPTION OF THE "GATEWAY PLAZA SPECIFIC PLAN" - BARON LAND LLC/CITY OF CHULA VISTA Planning Technician Steichen stated that this is a request for a General Plan Amendment/Rezone and Specific Plan in order to change the allowable land uses for a project site located at 720 and 730 "H" Street. The site is considered in the General Plan as a "gateway" into the City. This site currently consists of a 4,760 square foot commercial building with a total of 24 parking spaces provided on-site. The current zoning designation of C-V-P provides limited land use options to the existing commercial building. Residents of the Bison Mobile Home Park to the south have expressed concerns over types of land uses which would be allowed with the proposed zone change to COCo Staff further recommends adoption of a Specific Plan to place restrictions on land uses allowed under the proposed C-C zone and also to maintain previous guidelines aimed at enhancing the City's gateway. These guidelines which are currently outlined under the P modifier in the C-V zone relate to landscaping and signage. Staff has made two changes to the list of uses in the proposed Specific Plan: 1) Item B has been clarified to indicate that the decisions on those items listed on conditional uses would be by the Zoning Administrator. 2) Item B.3 has been clarified to include consumption of alcohol on-site. Staff believes the best way to control the extent to which the serving of alcohol will be accessory to the main use is by processing an Administrative CUP. Numerous residents of the mobile home park expressed concerns (including submission of a petition) over the liberal amount of uses which would be allowed under the proposed C-C zone. This includes such things as bars and night clubs. It should be noted that a lot of these same uses are currently allowed under the current C-V-P zone with a conditional use permit. Staff recommends the Planning Commission adopt the resolution recommending the City Council amend the General Plan, rezone the property and adopt the Specific Plan. Chair Tarantino asked for questions or comments from the Commissioners. Commissioner Thomas asked if the Baja Lobster restaurant had a conditional use permit; do they sell alcohol? Mr. Steichen responded that they do sell alcohol, and that was not a requirement at the time under the C- V zone that they obtained a conditional use permit for the sale of alcohol. It would now be a requirement. Mr. Lee stated that it would be under this amendment, but it would not be retroactive, so they would not be required to apply for one. --1 - .:>- -,,----..-,'-..-.... ..--"- -.~. _.._...~--~--_.- .-...- Commissioner Aguilar had a related question. Under A, permitted uses, restaurants. If a restaurant was going to serve alcohol, would it have to get a conditional use permit from the zoning administrator? Mr. Lee responded in the affirmative. The difficulty is that we could consider it as an accessory use. The problem is trying to determine what is accessory. In looking at the size of the parcel, the size of the building and the frequency that you might have, it appeared that the simplest way is to have it through the use permit process. That is consistent with the present direction of the City Council in the Neighborhood Commercial Zone. Mr. Lee noted that this parcel had a lot of characteristics (size and relationship to the residential areas) that would also be found in the neighborhood commercial zone. The only difference was that it is located on "H" Street and one of the gateways. Commissioner Aguilar questioned the other two items under B, Conditional Uses: service station, mini-mart in conjunction with service station, stating that she was not clear why those were included because since this was an existing project. Mr. Lee indicated that it was consistent with the zone and also consistent with the visitor commercial zone. The existing AMlPM market would have an existing conditional use permit. Commissioner Aguilar questioned the staff report where it mentioned a mitigated negative declaration. Mr. Steichen stated that it was not mitigated. Commissioner Davis commented that the revised list of conditional uses included the sale of alcoholic beverages for off-site uses or consumption on-site, but the prohibited uses were the beer bars, the liquor store, the cocktail lounge. It seemed like a conflict having those as a CUP but prohibited in the zoning. Mr. Lee indicated that we could then determine the seating capacity of a restaurant and whether the sale of alcohol was directly related to the food service area versus a separate bar area. It would be very confusing if it was under a use permit because of the way the prohibited uses are spelled out. Thinking in terms of the size of this area and the possibility of uses coming in, it is going to be extremely limited. It is not something that is going to happen every day. Commissioner Davis asked that, when you have off-site sale of alcoholic beverages, you are not thinking of a liquor store, you are thinking of a mini-mart with a service station? Mr. Lee answered in the affirmative. This being the time and the place advertised, Chair Tarantino opened the public hearing. He had two speaker slips, but they were only for answering questions. If the Commissioners had any questions, Matt Peterson and Jim Clarke were in the audience willing to answer questions. Commissioner Davis asked the applicant representatives if they were supportive of staffs recommendation and everything that has been presented to us as far as the need for the CUP in different areas? .-'-/-- Matt Peterson, 530 "B" Street, Suite 2300, San Diego, CA with the law firm of Peterson and Price representing the applicant Baron Land, responded in the affirmative. Chair Tarantino, seeing no one else wishing to speak, closed the public hearing and asked for Commissioner deliberation. Commissioner Willett stated that he had talked to the people in the area" who were very happy when he explained the proposal. MS (WilIettIDavis) to adopt the draft Council resolution amending the land use designation from profession and administrative commercial to retail commercial with the data presented at the meeting and the exhibits attached hereto. Chair Tarantino asked Commissioner Willett if that also included the adoption of the recommendation that the City Council adopt the negative declaration? Willett responded in the affirmative. Commissioner Thomas indicated that traffic was a problem the Planning Commission could not deal with. If there was anything the Planning Commission can do to make this more marketable and appealing, like change some zoning, he thought it should be done. Commissioner Aguilar had a concern regarding the conditional uses. If the gateway plaza were demolished in the future, and the property owner decided he or she wanted to put in a gas station, that could happen just with the approval of the Zoning Administrator? Mr. Lee answered in the affirmative. It would go through design review for the design portion. Commissioner Aguilar indicated that it concerned her because she would not like to see a second service station on that site given that it is a gateway site to the community. If there were going to be a service station proposed for that site, she would like to see something like that come back to the Commission for consideration rather than simply having it approved administrati vel y. Mr. Lee assured Commissioner Aguilar that if two gas stations were proposed, staff would take a close look at that. If it is approved by the Zoning Administrator, we send an information item forward to Council. They have the ability to call that forward through this body, too. So there are some checks and balances in there. Commissioner Willett made a suggestion that the evaluation for the feasibility of putting up a 6-foot block wall or something be made because the headlights shine right into the mobile homes and also the way the dumpsters are arranged. Mr. Lee indicated that, when the development went in, staff had proposed a 6-foot wall. The residents of the mobile home park came forward and protested that and wanted a lower wall because they wanted to see the activity on "H" Street. They dictated, literally, the height of the wall. VOTE: 6-0 (Ray absent) to approve staff recommendation as amended. _C_ --' --.--.--,---......- . ..._._.,..-.._-_._.-----_._-_._--~~--_._-----'"- RESOLUTION NO. GPA 97-02lPCZ 97-02/PCM 97-18 RESOLUTION OF THE CITY OF CHULA VISTA PLANNING COMMISSION RECOMMENDING THAT THE CITY COUNCIL AMEND THE GENERAL PLAN, ADOPT A SPECIFIC PLAN, AJ\1]) REZONE .93 ACRES LOCATED AT THE SOUTHEAST QUADRANT OF INTERSTATE 5 AJ\1]) H STREET FROM C-V-P TO CoCo WHEREAS, duly verified applications for a General Plan amendment, and rezoning of.43 acres was filed with the Planning department of the City of Chula Vista on January 16, 1997 by Baron Land LLC; and WHEREAS, the City of Chula Vista has expanded the project area by an additional .5 acres to include the property directly adjacent to the east and include consideration for a Specific Plan to further restrict allowable uses under the proposed C-C (Central Commercial) zoning, and WHEREAS, said applications request that the .93 acre project site located at the southeast quadrant of Interstate 5 and H Street be designated Retail Commercial on the General Plan, rezoned from C-V-P (Visitor Commercial with Precise Plan) to C-C (Central Commercial) and, further, that the rezoning be accompanied by the adoption of a specific plan known as the "Gateway Plaza Specific Plan," and WHEREAS, an Initial Study was prepared for the proposed project, and WHEREAS, the Planning Director set the time and place for a hearing on said rezone application 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 and residents within an area greater than 500 feet of the exterior boundaries of the property at least 10 days prior to the hearing; and, WHEREAS, tlle hearing was held at the time and place as advertised, namely April 9, 1997 at 7:00 p.m. in the Council Chambers, 276 Fourth Avenue, before tlle Planning Commission and said hearing was thereafter closed. WHEREAS, the General Plan has not been amended more than tllree (3) times this calendar year;and NOW, THEREFORE BE IT RESOLVED THAT the Commission has reviewed and considered IS 97-16 and recommends tlle City Council adopt tlle Negative Declaration. Be IT FURTHER RESOLVED THAT from the facts presented to the Planning Commission, the Commission recommends that tlle City Council enact an ordinance and resolution as attached hereto to amend the General Plan, adopt a specific plan and rezone for. 93 acres located at the southeast quadrant of Interstate 5 and H Street, based on the findings contained therein and in accordance with the exhibits attached thereto. BE IT FURTHER RESOLVED THAT a copy of tllis resolution be transmitted to the City Council. -&- PASSED AND APPROVED BY THE PLANNING COMMISSION OF CHULA VISTA. CALIFORNIA, this 9th day of April, 1997, by the following yote, to-wit: AYES: NOES: ABSENT: ATTEST: Nancy Ripley, Secret2.ry ro: Ihoroelplanningljefflresolgat - '7- _____",_"."___ .,_.. u, '___ ..,_....___.__ ..' _ _.__.~".._."_ _.~.._. A TT ACHMENT 4 GATEWAY PLAZA SPECIFIC PLAN I. INTRODUCTION A. Backl!I'ound The Gateway Plaza Specific Plan encompasses two parcels totaling .93 acres located near the southeast quadrant of "H" Street and Interstate 5 freeway as shown on the attached Specific Plan map marked Exhibit 1. The Specific Plan area is designated as a "gateway" in the Chula Vista General Plan. The two parcels were zoned C-V-P (Visitor Commercial subject to a precise plan) until the rezoning to C-C (Central Commercial) concurrently with the adoption of this specific plan. B. Purpose of the Specific Plan The purpose of the specific plan is to allow the properties to be utilized for retail commercial and other commercial uses on a more restricted scale than would otherwise be pennitted under the CC zone. These restrictions are in recognition of the various constraints affecting the site (including existing surrounding land uses) and in keeping with its prominent location as a "gateway" to the City of Chula Vista. The adoption of this specific plan was preceded by an amendment to the Land Use Diagram of the General Plan designating the site "Retail. Commercial" and rezoning both parcels to C-C (Central Commercial). While the General Plan redesignation of the site and rezoning would constitute sound urban planning practice, the relatively small size of the site, its proximity to residential development, and its location as a "gateway" to the City suggest that a specific plan for the site is appropriate. The specific plan process is designed to promote higher levels of land use innovation and design flexibility than the City's conventional zoning regulations by tailoring the proposed land uses to the site and establishing height and bulk standards sensitive to its location, size and configuration. C. Government Code Authoritv The specific plan implementation of a general plan is authorized under Title 7 of the California Government Code, Chapter 3, Article 8 and Chapter 19.07 of the Chula Vista Municipal Code. - ý- II. SPECIFIC PLAN A. Goals and Obiectives 1. Goals: The implementation of the Chula Vista General Plan and its several elements, and the promotion of land uses which are compatible with the existing and proposed surrounding areas adjacent to the site. 2. Objectives: The following embodies the general objectives of the Gateway Plaza Specific Plan: a. To ensure the continued application of guidelines to the property aimed at enhancing the City's "gateway." b. Recommend land uses which are considered most appropriate for the project site under the proposed C-C zone, and c. Preserve the quality of life for those residents located within the adjacent mobile home park and apartments through the prohibition of land uses that are considered objectionable on the project site. d. To allow existing uses on the site to continue including possible renovations and upgrades subject to all other provisions and requirements of the Chula Vista Municipal Code. B. General DescriDtion of the SDecific Plan The Gateway Plaza Specific Plan, prepared in accordance with Section 65450 et. seq. of the State Planning and Zoning Law and Chapter 19.07 of the Chula Vista Municipal Code, proposes to guide the land uses allowed on the properties at the southeast quadrant of the intersection H Street and Interstate 5. C. RelationshiD to the MuniciDal Code Other than items specifically listed in this specific plan, all other development standards and procedures shall comply with the provisions of the Chula Vista Municipal Code Title 19, most specifically Chapter 19.38 (attached for reference) and other applicable City standards and regulations. .- 1---- ~...---._-----_. .- -"-"---- D. Land Uses 1. Recommended Uses A. Permitted Uses 1. General Retail 2. Specialty Shops 3. Restaurants (Seating restricted based upon parking provided on-site and available to the restaurant) B. Conditional Uses (Zoninl! Administrator) 1. Service Station 2. Mini-mart (in conjunction with service station) 3. Permitted uses under the C-C zoning designation which include the sale of alcoholic beverages for off-site use or consumption on-site. 2. Prohibited Uses A. Beer bars B. Card rooms C. Athletic clubs (large) D. Bars (drinking places) E. Body conditioning clinic F. Cocktail lounge (primary use) G. Dancing-nightclubs H. Dance halls I. Liquor stores J. Video Arcades K. Amusement Centers L. Medical clinics (allowing walk-in patients) M. Treatment Centers N. Pool Rooms/Billiard Parlors E. Specific Development Guidelines 1. Landscaping shall reflect the location of these properties as one of the designated gateways to the City. 2. Future signing shall be oriented to H Street and be in keeping with the policies of the Scenic Highways Element. -/O~ negative declaration ATTACHMENT 5 I ! PROJECT NAME: Gateway Plaza PROJECT LOCATION: 730 "H" Street and 720 "H" Street ASSESSOR'S PARCEL NO.: 571-030-12,571-030-09 PROJECT APPLICA1'I'T: Baron Land LCC CASE NO: IS-97-16 DATE: March 12, 1997 A. Proiect Settin!! This project site lies at the intersection of"H" Street and the MTDB trolley tracks. It consists of two adjoining parcels, one at 730 "R" Street (APN # 571-030-12) which is owned by Baron Land LCC, and one at 720 "R" Street (APN # 571-030-09) which is owned by Atlantic Richfield. The Baron Land parcel is 18,048 s.f. (AI acres) and the Atlantic Richfield parcel is 22,358 s.f. (.51 acres). Together the parcels equal 40,406 sJ. (.92 acres). A 4,800 s.f. retail structure now occupies the parcel at 730 "H" Street, while an AM PM mini mart and service station are currently located at 720 "H" Street. The Baron Land parcel provides 24 parking spaces and the AM PM parcel provides 8 parking spaces (32 total). Surrounding land uses include: Visitor Commercial to the north, multi-farnHy residential to the east, the Metropolitan Transit Development Board (MTDB) right-of-way to the west, and Bison Mobile Horne Park to the south. B. Proiect Descriotion Existing General Plan designation is Professional and Administrative. Existing zoning is Visitor Commercial. At this time, the Gener¡tl Plan and Zoning Ordinance designations on this site are not compatible. A Specific Plan IS being proposed to limit uses within the CCP zone. C. Compatibility with Zonin!! and Plans The current zoning on-site is CV (Visitor Commercial) and the site is designated Professional and Administrative on the City's General Plan. The existing zoning is not in compliance with the General Plan. The applicant proposes two discretionary actions, a General Plan Amendment from Professional and Administratiye Commercial to Retail Commercial, and a Rezone from C- V (Visitor Commercial) to C-C (Retail Central Commercial). These actions will facilitate compatibility between the General Plan and the Zoning Ordinance. (H:\hom:::\plannin;:\keith \nd.s:altW3Y) -1)- ~\~. -.- r__ _~...;: - -' _._u_. _._~.__ çlt.Y Q1 .ch.uIA_.ma. Dlannlna decartment nTY n¡: D. Identification of Environmental Effects An initial study conducted by the City of Chula Vista (including the attached Environmental Checklist Form) determined that the proposed project will not haye a significant environmental effect, and the preparation of an Environmental Impact Report will not be required. This Negatiye Declaration has been prepared in accordance with Section 15070 of the State CEQA Guidelin';s. D. Consultation 1. Individuals and Or£anizations City of Chula Vista: Keith Barr, Planning Doug Reid, Planning Roger Daoust, Engineering Cliff Swanson, Engineering Gary Williams, Planning Ken Larsen, Director of Building & Housing Doug Perry, Fire Marshal MaryJane Diosdada, Crime Preyention Marty Schmidt, Parks & Recreation Dept. Attorneys Department Dee Peralta, Chula Vista City School District Tom Silya, Sweetwater Union High School District Applicant's Agent: Baron Land LLC 2. Documents Chula Vista General Plan (1989) and EIR (1989) Title 19, Chula Vista Municipal Code PCC-82-7 Atlantic Richfield Co. ^ Initial Studv .). This e~vironmental determination is based on the attached Initial Study, any comments received on the Initial Study and any comments received during the public review period for this Negatiye Declaration. The report. reflects the independent judgement ofthe City ofChula Vista. Further information regarding the environmental review of this project is available from the Chula Vista Planning Department, 276 Fourth Avenue, Chula Vista, CA 91910. ENVÍRO ENTAL REVIE Douglas D. Reid (H.:'.home\planning\keilh\nd.!;:lleW2'j) -(1 pilgc1 c:-- - ~-- -~ APPLICATION C.:U'iNOT Bi. .CCEPTED LjNLESS SITE I'orOffi¿e Use Only PLA.N IS FOLDED TO m INTO AN 8-1/2 X II FOLDER CåSeN8:I~~7-1 GO, Dpse Amn . lOW· " .ReeeiptNó:··· INITIAL STUDY D~tSRëç'd~,-¡-1/;, ;17 Accepted byJ e , , . City of Chula Vista -r: q-¡-o93 hòjec(N6; FA-'?II..o. opsLNôTDOc ")¡",2: Application Form . CIPNo};:::x:" .....:.... A. BACKGROUND . RéIàÎêd'ease No.·.·..::.·{- fci¿C¡:rÞD~,(;P A7'1 -ð;}.. 1. Project Title Gateway Plaza 2. Project Location (Street address or description) 730 "H" Street Chula Vista, Ca 91910 Assessors Book, Page & Parcel No. 571-030-1200 3. Brief Project Description 4,800 square foot retail center (existing) 4. N arne of Applicant Baron Land LLC Address 5925 Kearny Villa Rd. #100 Fax# 565-4404 Phone 565-4400 City San Diego State Ca Zip 92123-1004 5. N arne of Preparer/ Agent same as above Address Fax# 565-4404 Phone 565-4400 City State Zip Relation to Applicant 6. Indicate all pennits or approvals and enclosures or documents required by the Enyironmental Reyiew Coordinator. a. Pennits or approvals required. ~ General Plan Amendment _ Design Reyiew Application _ Specific Plan ..1Ql Rezone/Prezone _ Tentatiye Subd. Map - Conditional Use Permit _ Grading Permit _ Redeyelopment Agency OPA - Variance _ Tentative Parcel Map _ Redeyelopment Agency DDA _ Coastal Development - Site Plan & Arch. Reyiew _ Public Project Other Permit - _ Special Use Permit - Annexation If¿roject is a GenliJ! P}~ ~endment and/or rezone, please indicate the ~e in designati&o ",11, Prof..J- ~ I C?. V to - e-t ~Ofl1me'<Cla 'Ç1C / b. Enclosures or documents (as required by the Environmental Review Coordinator). _ Grading Plan' Arch. Eleyations _ Hydrological Study _ Parcel Map _ Landscape Plans _ Biological Sludy Precise Plan _ Tentatiye Sub<!. Map _ Archaeological Study = Specific Plan _ Improyement Plans Noise Assessment _ Traffic Impact Report _ Soils Report _ Other Agency Pennit - Hazardous Waste Assessment _ Geotechnical Report ~ Other Site Plan 'WPC:F;"'HOME\Pl..A~osrOR.IDJ.02·A.93 (Ref. 102D.93) (Ref. 1022.93) -'- / 3 __ Page 1 _..~.-- ..._-----~-.- 7. Indicate orner applications for permits or approvals that are kmg submilIed at rnis time. a. Permits or approvals required. xx General Plan Amendment _ Désign Reyiew Application _ Specific Plan - xx Rezone/Prezone _ Tentatiye Subd. Map - Conditional Use Pennit _ Grading Pennit _ Redevelopment Agency OPA - Variance _ Tentatiye Parcel' Map _ Redevelopment Agency DDA _ Coastal Development - Site Plan & Arch. Reyiew _ Public Project - Orner Pennit _ Special Use Pennit - Annexation B. PROPOSED PROJECT - EXISTING PROJECT - NO NEW ADDITIONS PROPOSED. \. a. Land Area: square footage 18048 or acreage .414 If land area to be dedicated, state acreage and purpose. n/a b. Does me project inyolye me construction of new buildings, or will existing structure be utilized? Existing Building « Complete this section if project is residential or mixed use. a. Type of deyelopment:_ Single Family _ Two Family _ Multi Family - Townhouse - Condominiwn b. Total number of structures c. Maximum height of structures d. Number of Units: I bedroom - I 2 bedroom I - 3 bedroom - 4 bedroom - Total Units - e. Gross density (DD/total acres) f. Net density (DD/total acres minus any dedication) g. Estimated project population - h. Estimated sale or rental price range 1. Square footage of structure J. Percent of lot coverage by buildings or structures k. Number of on-site parking spaces to be provided 1. Percent of site in road and paved surface 3. Complete this section if project is commercial or ~kor:m~use. a. Type(s)ofIanduse í?e..tC¿( (~Off1l1!ef~(!./r;jJ Sçje.s CZN&Seý1f/lf'ê5 b. Floor area 4,800 sq. ft. Height of structures(s) 20 ft. one-story c. Type of construction used in the structure v - -Non-Rated WPC:F:\HO!orŒ\PL\."~'rnG'$fOR.FJ:N.021.A.93 (Ref. 1020.93) (Ref. 101..1.93) - I <f -- Page 2 d. Describe majOr access points to the structures and the urientation to adjoining propenies and streets e. Number of on-site parking spaces provided f. Estimated number of employees per shift Number of shifts Total g. J:;stimated number of customers (per day) and basis of estimate h. Estimated number of deliyeries per day 1. Estimated range of service area and basis of estimate J. Type/extent of operations not in enclosed buildings k. Hours of operation 1. Type of exterior lighting i- If project is other than residential, commercial or industrial complete this section. a. Type of project b. Type of facilities proyided c. Square feet of enclosed structures d. Height of structure(s) - maximum e. Ultimate occupancy load of project f. Number of on-site parking spaces to be proyided g. Square feet of road and payed surfaces h. Additional project characteristics C. PROJECT CHARACTERISTICS 1. Will the project be required to obtain a pennit through the Air Pollution Control District (APCD)? Existing Building-No new additions proposed. WPC:F:\HOMJ:.\PLA.'l'NING\ST0RED\102:1·A.93 (Rc:f. 1020.93) (Rc:f. 10"...1.93) ~ Page 3 - /.J _ . "..._.__._..'~ .--.-....". --.... .- 2. Is any type of graamg or excavation of the property anticipated? N(J;1/~ If yes, comp1ete the following: a. Excluding trenches to be backfilled. how many cubic yards of earth will be excayated? b. How many cubic yards of fIll will be placed? c. How much area (sq. ft. or acres) will be graded? d. What will be the; Maximum depth of cut A verage depth of cut Maximum depth of fIll A yerage depth of fill 3. Describe all energy consuming deyices which are part of the proposed project and the type of energy usediair conditioning, e1ectricaÆPliance, heating equipment, etc.) £)(ló ¡vt If?l)f{! diu X ,'f:' êb-f- SeY'r/C!eJasSGCI, , ;fir B.. S/If,o .r 4. Indicate the amount of natural open space that is part of the project (sq. ft. or acres) Nõ/Vþ: 5. If the project wil1 result in any employment opportunities describe the nature and type of these jobs. 77t.o.>c:. qs Sed (¿jeeR.. ££}¡,fIt. Ke þl/ Bv.s ;11~JS 6. Will high1y flammable or potentially explosiye materials or substances be used or stored within the project site? NO 7. How many estimated automobile trips, per day, will be generated by the project? Ir¡~ 8. Describe (if any) off-site improvements necessary to imp1ement the project, and their points of access or connection to the project site. Improvements include but not 1irrúted to the foUowing: new streets; street widening; extension of gas, e1ectric, and sewer lines; cut and flU s10pes; and pedestrian and bicycle facilities. Éxisting Building-No new additions proposed. , WPC:F:'HOME\PL\.'''?\1NG\STOREDJ021-A.93 (Ref. IOW.93) (Ref. 1022.93) -/0 ~ Page 4 D. DESCRIPTION OF ENV¡"vNMENTAL SETTING 1. Geololrv Has a geology study been conducted on the property? NO (If yes, please attach) Has a soils report on the project site been made? NO (If yes, p!ease attach) 2. Hvdrololrv AIe any of the following features present on or adjacent to the site? (If yes, explain in detail.) a. Is there any surface eyidence of a shallow grolliJd water table? NO b. AIe there any watercourses or drainage improyements on or adjacent to the site? YES - EXISTING STORM DRAINAGE CHANNEL c. Does runoff from the project site drain directly in to or toward a domestic water supply, lake, reservoir or bay? NO d. Could drainage from the site cause erosion or siltarion to adjacent areas? NO e. Describe all drainage facilities to be proyided and their location. Existing Building and Drainage Facilities. 3. Noise a. AIe there any noise sources in the project vicinity which may impact the project site? NO b. Will noise from the project impact any sensitive receptors (hospitals, schools, single- family residences)? NO 4. Biololrv a. Does the site inyolye any Coastal Sage Scrub yegetation? NO b. Is the project site in a natural or partially natural state? NO c. If yes, has a biological survey been conducted on the property? Yes No xx (Please attach a copy.) d. Describe all trees and vegetation on the site. Indicate location, height, diameter, and species of trees, and which (if any) will be remoyed by the project. EXISTING PROJECT. WPC:F:'HOME\PI.A.~'lNG\STOR.EI1\I021-A.93 (Ref. 1020.93) (Ref. 1021.93) -/'7/ Page 5 __H__ ..____.__n_..__ . ----_._~-~_._._~,--_._- -'--"--'--'~---'---- 5. Past Use of the La, ,ú a. he there any known historical or archeological resources located on or near the project site? NO b. he there any known paleontological resources? NO c. Have there been any hazardous materials disposed of or stored on or near the project site? NO d. What was the land previously used for? DO NOT KNOW. 6. Current Land Use a. Describe all structures and land uses currently existing on the project site. 4,800 sa. ft. retail center zoned C-V b. Describe all structures and land uses currently existing on adjacent property. North H Street and Trolley Station South Mobil Home Park East ARCO AM/PM Mini-Mraket and Gas Station West Drainage Channel and Freeway Off-R~~p 7. Social a. he there any residents on site? NO If so, how many? b. he there any current employment opportunities on site? YES If so, how many and what type? Restaurant, Allstate Insurance and Communications Business. 8. Please proyide any other information which may assist in the eyaluation of the proposed project. This is an existing project that was built in 1989 as a retail center. All reauired governmental approvals were obtained and complied with at that time to the best of our knowledge. \\'PC:F:\HOM.E\PLA."f1>,'ING"STORIDJ02·A.93 (Rd. 1020.93) (Ref. 1022.93) - /5'- Page 6 E. CERTJFICA TJON I, as owner~ Baron Land LLC 5925 Kearny Villa Rd., Suite 100, San Diego, Ca 92123-1004 Printnarne James A. Clarke, Manager or I. consultant or agent* Print name HEREBY AFFIRM, that to the best of my belief, the statements and information herein contained are in all respects true and correct and that all known information concerning the project and its setting has been included in this application for an Initial Study of possible enyironmental impact and any enclosures for attachments thereto. ////~~/ ".... ~. wner/r»».KIeXIDuifOOrnJêKg:imJa¡lœ or Consultant or Agent Signature //;S-/f7 Date / / *If acting for a corporation, include capacity and company name. WPC:F:\HOMÐPU.NNING\ST0R.ED\1021.A.93 (Ref. I02D.93J (Ref. 1022.93) -¡f- Pago 7 .-.-.. ~,._-_._,.._-..._.._...,~ --' -'-'~"--------'- THE CITY OF CHULA VISTA DISCLOSURE STATEMENT Statement of disclosure of certain ownership interests, payments, or campaign contributions, on all matters which will require discretionary action on the part of the City Council, Planning CoJI11Djssion, and all other official bodies. The following information must be disclosed: . 1. List the names of all persons haye a flDancial interest in the contract, i.e" contractor, subcontractor, material supplier. James A. Clarke Diane Clarke 2. If any person identified pursuant to (I) aboye is a corporation or partnership, list the names of all indiyiduals owning more than 10% of the shares in the corporation or owning any partnership interest in the partnership. same as above 3. If any person identified pursuant to (I) aboye is non-profit organization or a trust, list the names of any person serving as director of the non-profit organization or as trustee or beneficiary or trustee of the trust. n/a 4. Have you had more than S250 worth of business transacted with any member of the City staff, Boards, CoJI11Djssions, CoJI11Djttees and Council within the past twelye months? NO 5. Please identify each and eyery person, including any agents, employees, consultants or independent c0E!Eactors who y u h .? asSig~d to represent you before the City in this matter. --..Ja.t1'te.s ,< a f" 'è... ~ e: 6. Haye you and/or your officers or agents, in the aggregate, contributed more than SI,ooo to a Council member in the current or preceding election period? Yes [ ] No f"J If yes, state which Council member(s): Person is defmed as: . A1Jy individual, finn. co.parmership, joint vecwre, association. social club, fraternal organizarion. corporation. estate, trust, n:ccivcr, syndicate, this and any other county. ciry and county, city, municipality. disnict or other political subdivision. or any other group or combination acting u a unit.· (NOTE: Attacb additional pages as necessary) , .' Date: I//!//Y? / / Baron Land LLC James A. Clarke, Manager Print or type name of contractor/applicant WPC:F:\HOME\PLANNING\STORED\1021-A.9J,Rcf. l020.93)(Rcf. 1022.93) -¿n~ Page 11 Case No.18-97-1 6 ENVIRONMENTAL CHECKLIST FORl\1 1. Name of Proponent _ Baron Land LCC '" 2. Lead Agency Name City ofChula Vista and Address: 276 Fourth Ave Chula Vista, CA 91910 ~ Address and Phone 5925 Kearney Villa Rd. #100 ~. Number of Proponent: San Diego, CA 92123-1004 4. Name of Proposal: Gateway Plaza 5. Date of Checklist: March 7,1997 Potentially Potentially Signific:ant Leu than Signific:ant Unl~ Significant ;0.;0 Imp3ct . Mitigated Impact Impact 1. LAND USE AND PLANNING. Would the proposal: a) Conflict with general plan designation or 0 0 ¡g¡ 0 zoning? b) Conflict with applicable environmental plans or 0 0 0 ¡g¡ policies adopted by agencies with jurisdiction over the project? c) Affect agricultural resources or operations 0 0 0 ¡g¡ (e.g., impacts to soils or farmlands, or impacts from incompatible land uses)? d) Disrupt or divide the physical arrangement of 0 0 0 ¡g¡ an established community (including a low- income or minority community)? Co=ents: At this time, the General Plan designation and the Zoning designation are not compatible. Project applicant proposes a General Plan Amendment from Professional and Administrative to Retail Co=ercial, and a Rezone from C-V (Visitor-Co=ercial) to C-C (Retail Central-Commercial). Land uses will be restricted through a Specific Plan so that any potential land use conflicts will be avoided in the future. - <..-+1- ----......-. _n_____._... _ .___..~__u._....,_.... ._n____... POI~n:jally POltntially Si;niflcant Lc:ss than Si;niflcant unless Si:;:nirïcant ~o Impact ;\[iti::al~d Impact Impart II. POPULATION M'iTJ HOUSING. Would ¡he proposal: a) Cumulatively exceed ofÏu:ial regional or local 0 0 0 t8I . population projections? ' b) Induce substantial growth in an area either 0 0 0 t8I directly or indirectly (e.g., through projects in an undeveloped area or extension of major infrastructure)? c) Displace existing housing, especially affordable 0 0 0 t8I housing? Co=ents: Neither population nor demographics would be impacted by the proposed project. The project would not have any impact on housing stock, or create a demand for additional housing. m. GEOPHYSICAL. Would the proposal result in or expose people to potential impacts involving: a) Unstable earth conditions or changes in 0 0 0 t8I geologic substructures? b) Disruptions, displacements, compaction or 0 0 0 t8I oyercovering of the soil? c) Change in topography or ground surface relief 0 0 0 t8I features? d) The destruction, covering or modification of 0 0 0 t8I any unique geologic or physical features? e) Arly increase in wind or water erosion of soils, 0 0 0 t8I either on or off the site? f) Changes in deposition or erosion of beach 0 0 0 t8I sands, or changes in siltation, deposition or erosion which may modify the channel of a river or stream or the bed of the ocean or any bay inlet or lake? g) Exposure of people or property to geologic 0 0 0 t8I hazards such as earthquakes, landslides, mud slides, ground failure, or similar hazards? Co=ents: The project will not cause significant geophysical impacts on the site. IV. WATER. Would the proposal result in: a) Changes in absorption rates, drainage patterns, 0 0 0 t8I or the rate and amount of surface runoff? - '):ì- ?-......~. - rOI~ntj.liy POI~ntially Si;:niricant Lcss than Si:;:nificant Unle:s.s Si~nifjca"1 :\0 Jmpact Mi!i:;:H~d Impact Impact b) Exposure of people or property to water 0 0 0 [8:J related hazards such as flooding or tidal waves? 'ï. c) Discharge into surface waiers or other 0 0 0 [8:J alteration of surface water quality (e.g., temperature, dissolved oxygen or turbidity)? d) Changes in the amount of surface water in any 0 0 0 [8:J water body? e) Changes in currents, or the course of direction 0 0 0 [8:J of water movements, in either marine or fresh waters? t) Change in the quantity of ground waters, either 0 0 0 ¡g¡ through direct additions or withdrawals, or through interception of an aquifer by cuts or excayations? g) Altered direction or rate of flow of 0 0 0 ¡g¡ . groundwater? h) L-npacts to groundwater quality? 0 0 0 ¡g¡ i) Alterations to the course or flow of flood 0 0 0 ¡g¡ waters? j) Substantial reduction in the amount of water 0 0 0 ¡g¡ otherwise available for public water supplies? Co=ents: Drainage capacities will not be affected by project imp,lementation. I V. AIR QUALITY. Would ¡he proposal: a) Violate any air quality standard or contribute to 0 0 0 ¡g¡ an existing or projected air quality violation? b) Expose sensitive receptors to pollutants? 0 0 0 ¡g¡ c) Alter air movement, moisture, or temperature, 0 0 0 ¡g¡ or cause any change in climate, either locally or regionally? d) Create objectionable odors? 0 0 0 ¡g¡ e) Create a substantial increase in stationary or 0 0 0 ¡g¡ non-stationary sources of air emissions or the deterioration of ambient air quality? Comments: Project will not cause significant adverse effects to air quality. - d.-3 - ._...._._ ____'u'",..,·_ --,,--.---.----. - --<-,..---------_.". ._-*" Ptllc:ntíally Potc:ntially SÎ~nifi¡;;¡¡nt Los than S¡~nilic.ant Dr-Icss Si~nili¡;;¡¡nt :\'0 Impact ;\fili~¡¡ted Impact Impact \1. TR..A...c\"SPORTATION/CIRCULATION. Would Ihe proposal result in: a) Increased vehicle trips or..;raffic congestion? 0 0 0 ¡g¡ b) Haz~rds to safety from design features (e.g., 0 0 0 ¡g¡ sharp curves or dangerous intersections) or incompatible uses (e,g., farm equipment)? c) Inadequate emergency access or access to 0 0 0 ¡g¡ nearby uses? d) Insufficient parking capacity on-site or off-site? 0 0 0 ¡g¡ e) Hazards or barriers for pedestrians or 0 0 0 ¡g¡ bicyclists? f) Conflicts with adopted policies supporting 0 0 0 ¡g¡ alternative transportation (e.g. bus turnouts, bicycle racks)? g) Rail, waterborne or air traffic impacts? 0 0 0 ¡g¡ h) A "large project" under the Congestion 0 0 0 ¡g¡ Management Program? (An equivalent of 2400 or more average daily vehicle trips or 200 or more peak-hour vehicle trips.) Co=ents: Primary roads are adequate to serve the site. Project will not affect roadway adequacy. VII. BIOLOGICAL RESOURCES. Would the proposal result in impacts 10: a) Endangered, sensitive species, species of 0 0 0 ¡g¡ concern or species that are candidates for listing? b) Locally designated species (e.g., heritage 0 0 0 ¡g¡ trees)? c) Locally designated natural communities (e.g, 0 0 0 ¡g¡ oak forest, coastal habitat; etc.)? d) Wetland habitat (e.g., marsh, riparian and 0 0 0 ¡g¡ vernal pool)? e) Wildlife dispersal or migration corridors? 0 0 0 ¡g¡ f) Affect regional habitat preservation planning 0 0 0 ¡g¡ efforts? Co=ents: On-site there does not exist any sensitive species of plants or animals. No impacts to biological resources would occur from the project. - L~4 _ rOlcr.ti2l1y Pottnlially Si:niliC2nt Less than Si:::nifit2nt Unless Si:::nifit2n1 :-;0 Impact ;\Iili:;ated Impact Impatt Y1II. ENERGY Aì\1) ML'\"ERA.L RESOURCES. Would ¡he proposal: a) Conflict with adopted ene,¡gy conservation 0 0 0 [g¡ plans? b) Use non-renewable resources in a wasteful and 0 0 0 [g¡ inefficient manner? c) If the site is designated for mineral resource 0 0 0 [g¡ protection, will this project impact this protection? Co=ents: The proposed project does not conflict with adopted energy conservation plans and does not propose the use of non-renewable resources in a wasteful and inefficient manner. IX. HAZARDS. Would ¡he proposal involve: a) A risk of accidental explosion or release of 0 0 0 [g¡ hazardous substances (including, but not limited to: petroleum products, pesticides, chemicals or radiation)? b) Possible interference with an emergency 0 0 0 ¡g¡ response plan or emergency evacuation plan? c) The creation of any health hazard or potential 0 0 0 [g¡ health hazard? d) Exposure of people to existing sources of 0 0 0 [g¡ potential health hazards? e) Increased fire hazard in areas with flammable 0 0 0 ¡g¡ brush, grass, or trees? Co=ents: Project would not create significant hazards on-site. X. NOISE. Would ¡he proposal result in: a) Increases in existing noise levels? 0 0 0 [g¡ b) Exposure of people to severe noise levels? 0 0 0 [g¡ Co=ents: The proposed project would NOT create an increase in noise. There are sensitive noise receptors (multi-family establislunents) directly to the east of the project site and some public concern has been expressed about existing noise levels. XI. PUBLIC SERVICES. Would the proposal have an effect upon, or result in a need for new or altered government services in any of the following areas: a) Fire protection? 0 0 0 [g¡ -2'-'" -, J _ -..._..~"._...._,-_..-_._._-------~---,_._--- . Potc:ntiaJJy Potentially Si:;nifi¡:anl Less than Si:;niri¡:ant ünless Si::niri¡:anl :0;0 Impa¡:t ~Jili::alc:d Impa¡:1 Impact b) Police protection? D D D ¡g¡ c) Schools? D D D ¡g¡ ~\ d) Maintenance of public facilities, including D D D ¡g¡ roads? e) Other governmental services? D D D ¡g¡ Co=ents: No new governmental services will be required to serve the project. XII. Thresholds. Will the proposal adversely impact D D D ¡g¡ the Ciry's Threshold Standards? As described below, the proposed project does not adversely impact any of the seen Threshold Standards. a) Fire/EMS D D D ¡g¡ The Threshold Standards requires that fIre and medical units must be able to respond to calls within 7 minutes or less in 85 % of the cases and within 5 minutes or less in 75 % of the cases. The City of Chula Vista has indicated that this threshold standard will be met, since the nearest fIre station is 1.25 miles away and would be associated with a 5 minute response time. The proposed project will comply with this Threshold Standard. Co=ents: This project will not affect Fire Department operations. b) Police D D D ¡g¡ The Threshold Standards require that police units must respond to 84 % of Priority 1 calls within 7 minutes or less and maintain an average response time to all Priority 1 calls of 4.5 minutes or less. Police units must respond to 62.10% of Priority 2 calls within 7 minutes or less and maintain an average response time to all Priority 2 calls of 7 minutes or less. The proposed project will comply with this Threshold Standard. Co=ents: Response times are within the recommended threshold for police services. Project will not affect police service to the site. c) Trafflc D D D ¡g¡ The Threshold Standards require that all intersections must operate at a Level of Service (LOS) "C" or better, with the exception that Leyel of Service (LOS) "D" may occur during the peak two hours of the day at signalized intersections. Intersections west of 1-805 are not to operate at a LOS below their 1987 LOS. No intersection may reach LOS "E" or "F" during the average weekday peak hour. Intersections of arterials with freeway ramps are exempted from this Standard. The proposed project will comply with this Threshold Standard. Co=ents: Project will not create signifIcant trafflc impacts. d) Parks/Recreation D D D ¡g¡ - ;It - Potcnl¡a]I~' Potentially Si:nirïtant Leu than S¡=niriant Unlc:¡s Si:;:nirïcant :\0 Impact Mitil:::I.tc:d Impact Impact The Threshold Standard for Parks and Recreation is 3'acres/I,OOO population. The proposed project will comply with this Threshold Standard. Comments: This project will not a~ct Parks and Recreation operations. 0 0 0 181 e) Drainage The Threshold Standards require that storm water flows and volumes not exceed City Engineering Standards. Indiyidual projects will provide necessary improyements consistent with the Drainage Master Planes) and City Engineering Standards. The proposed project will comply with this Threshold Standard. Comments: Drainage capacities will not be affected by this project. f) Sewer 0 0 0 181 The Threshold Standards require that sewage flows and volwnes not exceed City Engineering Standards. Individual projects will provide necessary improyements consistent with Sewer Master Planes) and City Engineering Standards. The proposed project will comply with this Threshold Standard. Comments: This project will not affect sewer capacities. g) Water 0 0 0 181 The Threshold Standards require that adequate storage, treatment, and transmission facilities are constructed concurrently with planned growth and that water quality standards are not jeopardized during growth and construction. The proposed project will comply with this Threshold Standard. Applicants may also be required to participate in whatever water conservation or fee off- set program the City of Chula Vista has in effect at the time of building permit issuance. Comments: This project will not affect water capacities. XIII. UTILITIES AND SERVICE SYSTEMS. Would the proposal result in a need for new systems, or substantial alterations to the following uÍilities: a) Power or narural gas? 0 0 0 181 b) Communications systems? 0 0 0 181 c) Local or regional water treatment or 0 0 0 181 distribution facilities? d) Sewer or septic tanks? 0 0 0 181 -¿).1- -~.---_.._-- -~.__. -. --_....~....._-_._~_.., ,----,_.--_.._._--~----_...- POlcnli2J!y POlcnli211y Si::;nific.3nt Less Ih2n Si::;nífiant Unlc:ss Síenific.2nt ~o Imp2ct MitiC2tcd Impact Impact e) Stann water drainage? 0 0 0 0 f) So1id waste disposal? 0 0 0 0 'i. Comments: Existing infrastructure is adequate to serve the project. XIV. AESTHETICS. Would the proposal: a) Obstruct any scenic vista or view open to the 0 0 0 0 public or will the proposal result in the creation of an aesthetically offensive site open to public view? b) Cause the destruction or modification of a 0 0 0 0 scenic route? c) Haye a demonstrable negative aesthetic effect? 0 0 0 0 d) Create added light or glare sources that could 0 0 0 0 increase the level of sky glow in an area or cause this project to fail to comply with Section 19.66.100 of the Chula Vista Municipal Code, TirJe 19? e) Reduce an additional amount of spill light? 0 0 0 0 Comments: The proposed project will not obstruct any scenic view and will not result in an offensive site for public view. XV. CULTURAL RESOURCES. Would the proposal: a) Will the proposal result in the alteration of or 0 0 0 0 the destruction or a prehistoric or historic archaeological site? b) Will the proposal result in adverse physical or 0 0 0 0 aesthetic effects to a prehistoric or historic building, structure or object? c) Does the proposal have the potential to cause a 0 D 0 0 physical change which would affect unique ethnic cultural values? d) Will the proposal restrict existing religious or 0 0 D 0 sacred uses within the potential impact area? e) Is the area identified on the City's General Plan 0 0 0 0 EIR as an area of high potential for archeological resources? (M:\home\pbnning\keit.b\:.:mplale".cklisLtem) - ;)ð'- pageS . Pu¡c:nti.lly Potc:ntiaJJy Si;nific.ant L~sthan Si;nifit2;nt . ünl~s Si;nific:.ant ~o Impact .\ti!i;:alc:d Impact Impact Comments: The site is not in an area of high potential for archeological resources. The proposal will not have any negative impacts on archeological resources. ,'1- XV1. PALEONTOLOGICAL RESOURCES. Willlhe 0 0 0 ¡g¡ proposal result in the alteration of or the destruction of paleontological resources? Comments: Due to the fact that the site has previously been disturbed and is not lqcated in an area of high potential paleontological resources as identified by the City's General Plan ErR, no negative impacts will occur as a result of this project. XVII. RECREATION. Would the proposal: a) Increase the demand for neighborhood or D D D ~ regional parks or other recreational facilities? b) Affect existing recreational opportunities? D 0 D ~ c) Interfere with recreation parks & recreation D D D ~ plans or programs? Comments: Existing recreational facilities would not be affected through project implementation. XVIII. MANDATORY FINDINGS OF SIG!\'IFICANCE: See Negative Declaration for mandatory findings of significance. If an EIR is needed, this section should be completed. a) Does the project have the potential to degrade D D D ~ the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop be10w self-sustaining leyels, threaten to , eliminate a p1ant or aIÙmal community, reduce the number or restrict the range of a rare or endangered plant or aIÙmal or eliminate important examp1es of the major periods or California history or prehistory? Comments: Project site will not create unhealthful conditions. b) Does the project have the potential to achieve D D D ~ short-term, to the disadvantage of 10ng-term, environmental goa1s? Comments: Project will not affect short-term or long-term goals. CM:\home\pJanning\keith\1=mplate\c:klist.lem) - ;;Ul - p:a:;e9 --.....- -.- ---- ..-._--~-_.- -.....------. r"tcnlÎa[Jy Potentially Si~nific.al'll Le:n than Significant Unless Si~nific:.anl So Impact Mitigated Impact Impact C) Do:s the project have impacts that are 0 0 0 t2I individually limited, but cumulatively considerable? ("Cumulatiyely considerable" means 'that the incremental effects of a project are considerable when viewed in connection with the effects of past projects, the effects of other current projects, and the effects of probable future projects.) Co=ents: Project will not create cumulative impacts. d) Does the project haye environmental effect 0 0 D t2I which will cause substantial adyerse effects on human beings, either directly or indirectly? Co=ents: Project will not cause substantial adverse effects on human beings. i XIX. PROJECT REVISIONS OR MITIGATION MEASURES: The fol1owing project revisions or mitigation measures have been incorporated into the project and will be implemented during the design, construction or operation of the project: N/A Project Proponent Date (M :\home\planning\keith\1:mp!:tte\cl:lisL ten) - 3D - pagelO x..'- E"-'lRON:'IIENTAL FACTORS POTENTIALLY AEFECTED: - ~. Tn: wvironm:ntal factors ch:cked below would be potentially aff:cted by this project, involving at Jeast on: impact that is a "Potentially Significant Impact" or "Potentially Significant Unless Mitigated," as indicated by th: checklist on the following pages. o Land Use and PJanning o TIanSponationlCirculation o Public Services o Population and Housing o Biological Resources o Utilities and Service Systems o Geophysical o Energy and MineraI Resources o Aesthetics o Water o Hazards o Cultural Resources o Air Qualiry o Noise o Recreation o Mandatory Findings of Significance XXI. DETER.l\1INA TION: On the basis of this initial eyaluation: I fmd that th: proposed project COULD NOT have a significant effect on the ~ :nvironment, and a NEGATNE DECLARATION wi1l be prepared. I fmd that although the proposed project could have a significant effect on the 0 environment, there wi1l not be a significant effect in this case because the mitigation measures described on an attached sheet have been added to the project. A MITIGATED NEGATNE DECLARATION wi1l be prepared. I fmil that the proposed project MAY have a significant effect on the environment, and 0 an ENVIRONMENTAL IMPACT REPORT is required. I fmd that the proposed project MAY have a significant effect(s) on the environment, but 0 at least one effect: 1) has been adequately analyzed in an earlier document pursuant to applicable legal standards, and 2) has be:n addressed by mitigation measures based on the earlier analysis as described on attached sheets, if the effect is a "potentiaJIy significant impacts" or "potentiaJIy significant unless mitigated." An ENVIRONMENTAL IMPACT REPORT is required, but it must analyze only the effects that remain to be addressed. I fmd that although the proposed project could have a significant effect on the 0 environment, there WILL NOT be a significant effect in this case because aJI potentiaJIy significant effects (a) have been analyzed adequately in an earlier EIR pursuant to applicable standards and (b) have been avoided or mitigated pursuant to that earlier EIR, including revisions or mitigation measures that are imposed upon the proposed project. An addendum has been prepared to provide a record of this determination. lbtMj -:S/1:Z/'77 Date .¡ / ignature Environmental Review Coordinator Ciry of Chula Vista (M:\home\plalUling\kdth\t::mplat=\cklisl.tem) -81- pagdl . e"" ..___,_......_ ..__.,_____________._ ..~....__....n.. CITY DATA SHEET Case # IS-97 -16 PLA~l'.1NG DEPARTMENT I. Current Zoning on site: CVP (Visitor-Commercial subject to a Precise Plan) North: R{c,vf' South: MHP East: R3 West: Freeway Does the project conform to the current zoning? No II. General Plan land use designation on site: CO (Commercial-Office) North: PA (Professional and Administrative)/-rS South: P A (professional and Administrative) East: High-Residential West: Freeway Is the project compatible with the General Plan Land Use Diagram? No Is the project area designated for conservation or open space or adjacent to an area so designated? No Is the project located adjacent to any scenic routes? NI A (If yes, describe the design techniques being used to protect or enhance the scenic quality of the route). III. Schools If the proposed project is residential, please complete the following: N/A Students Units Generating Generated School Capacity Enrollment Proposed Factors From Project Elementary .30 Junior High .29 Senior High .10 IV. Remarks: 3//6/9'/ I Date - - --- - 3}-~ Cas:: )'-;0. / ::r17-/0 LANDSCAPE PLA\1\ING A. Does the project afíect natiye plant communities? Vus- If so, pJeasc identify which communities. ^lf1 , y,'iIl the project require na1Îye planting? (Please describe) 1ke c;;-k.- ClL(fV'; \'5 ~\\\k J.eve l~ ' ì'V\cl4dlM~ Iq~SC"f1'( . ~ J ~ . \ . B. Ple= identify any imponant or highly visible hillsides on or adj=nt to the project. I f\c5v.-e..- . . What landscaping conditions (if any) will be required for these hillsides? ~/v¡ C. Of the total area to be deyeloped, how much, and which areas ar~ expected to be replante and require suppJememal watering? (Please describe). íhé: S t 'ç L G{V'r :.AtIlt JfvY[ ~t'.tl. E. AIr:. there any other landscape requirements or mitigation for the: project? ~ ~ /l'll,Q1 . City Landscape: Architect or Re:pre:se:matiye Date WPG':\H:)ME'<'\..Ah·I;tN~021.93 (Rd'. 1021.93) (U. IO:!O.93) "'3 Poge 8 -3 - ... _.._------~--_.-. Cas= No. Js -"11- lCo I!'IìERDEPARTMENTAL COMME~ì SHEETS ENGI!\"EERING DIVISION 1. Draina2e A. Is the project site within a flood plain? . ¡JD. If so: state wruch FEMA FIoodway Frequency Boundary. Ñ. fA . , B. 'What is the location and description of existing on-site drainage facilities? S, ~~ F'l.rH ïZ> ~ -eI'6,,.¡S A'r'Ørler$1 rs W;;.s.~=ý &::>(/tJDA12..V C. AIe they adequate to serve the project? Y6c.. If not, please explain briefly. /J/A. , D. 'What is the location and description of existing off-site drainage facilities? C¢~.b ;:4::~~ C-ð..J:~---L(,,",~ r~;::'-L ~ J.J~..,...+t. ~~U~ ~~_ # . , t...1/J~ C~o.J"'l Ï!:> w"'_~. E. AIe they adequate to serve the project? YES. If not, please explain briefly. ¡..¡ fA . , II. TranSDortation A. 'What roads provide primary access to the project? II f.f If ~ w¡..f-~¡'¡ 15 ~<;,,,~~ I A!; Á $1)( - LAN'" MA :To,," ~ IE::r lo.l -r:1+f:. C- r-rf.ls GF:~u:''''M.- '¡>(Ar.l. , B. 'What is the estimated number of one-way auto trips to be generated by the project (per day)? £:.<r5""~ z.".,..¡,,.J.~ ~ q(" APT" . f'12,.".p¿'5Ç"'-D ZoM'o.J& ~ ''12 APr. , f'Jc7rE.: ¡'¡(~c::. USE WA< A6 A 'f7-e.1ZJ1,U: ~.".J:=>75'oAvr '2ß~d:!F'w'HV.H' WE1Œ. ?~SS~* .~ C. 'What are e Á ¿rage Daily Traffic (A.D.T.) volumes on the primary =ss roads before and after project completion? StT~t Name Before After "H'f:,~, ~ L.{..¿") ?oJS~ . Do any of these volu= ex=d the City's Leyel-of-Service (L.a.s.) "cn design ADT volume? If yes, please specify. ¡J 0 . ~'·)'INGISroRID.1022.93 (Ilá. 1011.93) (Ilá. 1020.93)_ 3 ~_ Pa¡:e2 ~ .. C~~;';0.I<::-q7-/b If Ó~ A.D.T. or L.O.S. "C" d~sign \':Jb;n~ is u;Ü::1:J'W¡¡ or nOI 2??licabl=., ~xpl2in b;1::'1)'. -- -. -.-. ------ -¡.¡It..;~-- -.- -..-----.------.---- - ---- ---- ---- --------. --- / ·D. M ÜI~ primary a~·~·ss roads adequat~ to s~rv~ th~ project? Y¡;;;;. ¡.¡,,"'w~, I¡J -n;.£ ::t...~-n+I'= If not, pk2S~ ~xplzin bri~fly. 5 D'Ç I( ¡..f (/5rt2& WrLL- IJ , e:: 5rJf-r...AxJe - l7't1;..-s A ,",0 , - rl e:: ~ ~/L. .to. Would the project =a¡e una=ptabk L::v~\1'~f'š~~~ (LOS) at in~~ons adj=nt to or in th~ vicinity of th~ proj~t si~? ¡.J (') . If so, id~ntiÏy: Location fl,bJ.. Cumulariy~ L.O.S. P¡"'- ' r. Is û1~ propos~ project a "l2rg~ project" und~r th~ Cong~srion M2nag~m~nt Program? (An ~qui\'21ent of 2400 or Tmore av~r.ag~ d2iJy v~hicl~ trips or 200 or more p-..al:-hOUI ychicl~ trips). If yes, a Traffic L-npact An21ysis (TIA) will be requi.~. In this C2S~ the TlA.. ",ill h2\'~ to demons¡;at~ that th~ project will not creat~ an unmi¡igatabk ady~rse impact, or thaI ill related r.-¿fic impacts a.~ not mitigaI~ to a k\'el of non-signiñc2ncc. Yes ><. No Tn~ following questions apply iÏ a Traffic L-npact Analysis is not :r-...:¡uil-....d. G. Is ¡;a,:¡'jc mitigation :r-...qUIT~ to :r-....ducc ::ra,:¡'jc imp2!:"cS that will r::sult from implem~n!2rion of the propos~ project? Yes )( No If y~s, please d~scrib::. ¡.¡/¿. H. Is th~ project co~~nt with th~ cri~;2. :stablish~ in th~ CitY's Transponarion Phasing Plan, General Plan TIêffic EI~m~t, and ill oth~~rtin~t traffic studi~s? Pk2s~ :rd~:r-...ncc any oth~r r.-<u:¡'jc impact stUdi~s for roadway s~gm~nts that may be imp~~ by the propos~ proj~ct. y",S. 1 Is a tr.affic study requITed? Y:s x: No J. Is ÜI~r~ any d~ication rcquil-....d? . . N c: If so, pleas~ sp---cÏfy. . . -.. - - :3 J-~"'- ~r...E:'è7~-A}.."'1N~C~93 CR.:!. )t::153) ~ lC~.Y.3) rz¡:c ~ --.. ~. ......-....-.--.- -------~-_..- Cas~ No. IS..q7-/b K. Is thw~ any street wid~ning requir~d? NO. If so, please specify. N I A . I I I L. AIe th~rc any other street improvements required? Nt>. J If so, please specify the gen~ral nature of the necessary improvements. N!A-. , . ; : - M. Will the project and related public improvem~nts provide satisfactory traffic service for , I existing conditions and future build out General Plan conditions? (Pkase proYid~ a ~rief explanation). (E:x, srT>Jt; c¡,,,.¡ t> "'old S :;. YES Fv71)~ c;..:.JJ.t:O<l ?r.,..,.J 'BUIlJ'YxJí"' Cðt-J'br-n~c, =þ NO . 7ìfE (.;.ç.A!~2 A<.. PLÑ>i 12-E/.?U'/?é6 A !;r~-t.-A7.1F'.. MAül:fl- f?"'~IÄ"/Wfor# ,lor 1Z.Ar:6Er?ME'r:>I,M!.. W¡.f&J Wfr')'ÐJiii:r'>. o>J-St71 ill. Soils PAAA-.f6, Wru.. No Lo~é£IZ. se.. AP€l?u~ FóA.. ï1f-E: P~.s Przc,fq;[;D (J$~. T A. AIe th~re any.anticipated adyerse geotechnical conditions on the project site? Ño. B. If yes, specify these·conditions. NIl. . C. Is a Soils Report necessary? Nò. IV. Land Form A. What is the aYerage ~~~slope of the site? 2 % What is the maxirnumC~= slope of the site? 2D'l:. (WE.5-n:D' v ,;:;,'t:!::' sc..oPE'Þ.) , B. : V. Nojs~ AIe there any traffIc-related noise levels impacting the site that are significant enough to justify that a noise analysis be required of the applicant? ND. I VL Waste Generation How much solid and liquid (sewer) waste will be generated by the proposed project per day? Solid q(p L.Sç ¡IDÆY (OOE<=, "'"., F..c=P.r> F.,o<;rf"¡':;). Liquid (bSA GM.fD-.l~/r:>A-'I(r;.?c; ËD(~. Ex.~&:4' ~t!jn"Jr- P,Y 1.5Ð>1)ç(.'598 GL1' What is the location and size of existing sewer lines on or downstream from the site? ~ . (i)T3:J(t5ït1JG, 'f" S£WÐz. ~IZALPr w,:..ør GoJ::o D"F BO/,-""..v.;.. (2) BI, vc.p PtJs,,-U"_ . I ~w¡:::;1Z- U"æ: ¡::-, V 5:. r:=-1=e::r" F-A~ oF) Å1-tD 'P....IZM.u'L 'Tl>J -¡-¡¡.~ WF-4TF.../2 L-Ý ~.t2.'TV J ~~. ¡ . i AIe they adequate to serve the proposed project? (If no, please explain) YES. ! ¡ I I wPC,r.~'NIN~021.93 (R". 1021.93) (Rd. 1020.93) ·-36 -- Page 4 Case No. I547-{fL:, VIT. National PolJutant Dischar£e Elimination SvS!em CNPDES) Storm water Reouirements Will the applicant bC required to file a Notice of Intent with the State Water Resourœs Contra! Board for coverage under an NPDES Stormwater PeIDÚt? ND. . If yes, specify which NPDES permit(s) and explain why an NPDES permit is required. >J IA . I Will a Storm Water Pollution Prevention Plan (SWPPP) be required for the proposed project? Yes " No Additional comments I-it>...u::: . > VlII . Remarks Please identify and discuss any remaining potential adyeI>e impacts, mitigation measures, or other issues. No~..I&_. ~. ¡;;z ) ~ ) 97 City Date WPCoF,'Ð:>!o!EIPLA."^'IN~022.93 (ll.d. 1021.93) (R.<! I02!>.93) -.3 /}- Page 5 ., n ..__________. __,.__..~.".____ ____,_______,_ .- ROUTING FORM __-:;;::.~--: .- ------._::~ :; ~ '" ,~~'..: D;..:rE: January 22, ~997 ,"..-.:-- \ \ \. '), \9çj\ . .. ~r¡ , . ~ L . 'ld' H· " \ . TO: Xen Larson, Bu~ ~ng I( ous~ng " .-,.-, ';:oJ;n Lippitt, Engi~eeri~g (EIR only) \. \.-;'i,:;;'\~:::;',J Cl~ff SWanson, Eng~neer~ng (EIR only)', Ct\~-~c.i'.ó·· co'- Xen Goldkemp, Engineering (EIR only) r,~ Roger Daoust, Engineering (IS/3, EIR/2) , Anne Moore, Asst City Attorney (Draft Neg Dec I( EIR) Doug Perry, Fir~~epartment _ _ "._ _. _ - r-.. .~ .... Marty Schmidt, Parks 1("Reààatib:n-( Crime Prevention, Police Department (M.J. Diosdado) Community Development, Redev. Economic Dev. only CUrrent Planning Conservation Coordinator Duane Bazzel, Advance Planning Garry williams, Landscape Planner Bob Leiter, Planning Director Chula vista Elem. School District, Dr. Lowell Billings SWeetwater Union H.S. District, Tom Silva (IS I( EIR) Maureen Roeber, Library (Final EIR) LAFCO (IS/Draft EIR - If annexation is involved) Martin Miller, Project Tracking Log (route form only) Doug Reid (community Development Projects) Other FROM: Douq Reid Environmental Section SUBJECT: Application for Initial Study (IS-97-16/FA-716 IDQ368 ) Checkprint Draft EIR (20 days) (EIR--/FB-_/DQ ) Review of a Draft EIR (EIR- _/FB- _/DP ) Review of Environmental Review Record (FC- _ERR--l Review of Draft Neg Dec (IS- IFA- IDQ- ) The Project consists of: General Plan Amendment from Professional and .l>ñministrative commercial to Retail Commercial and Rezone from c-v (Visitor commercial) to C-C (Retail central commercial) . Location: 730 -H- Street Please review the document and forward to me. any comments you have by Feb. 5. 1997. Comments: No~.. ~ f;),· y~ 1.·~·'\1. - 3%- CoN /':;--//-/(0 as....,L o. FIRE DEPARTMEJ','T A. \\lhat is the distance to the nearest fire station? And what is the Fire Depanment's estimated reaction time? . I '/ C/ . B. Will the Fire Depanment be able to proyide an aDequate Icyel of fire protection for the proposed facility without an increase in equipment or personnel? 1õ(' C. Remarks . J.JJ ~ - V /.- .¿ f/Ziþ!f7 / Date ~\OOMEl!'!J.NNINwrORED\lO:!1.93 (R¿. 1011.93) (Rd. I02D.93) Page 6 -3f~ ------,-,--.'----------_.-- - --._,------- ..'-.---.,,-. --" --'P-- ___". CHULA VISTA POL ICE D E PAR T MEN T C RIM E PREVENTION UNIT P1= Review Reoo~=d"ions ~ 11 @ IJI D rø ' DATE: .'¡.l~i February 7, 1997 ,'!U r ~_ J ' .j - -, I TO: Doug Reid, Envi onmental nning ./ " CAM Brookover ,~aPtai1( ~rs, Inv. '-D' ~ VIA: FROM: SCPS MJ Diosdad~~me Prevention Unit PROJECT: Initial Study 97-16, IG.P.A. 730 H Street ____ The Police Department and the Crime Prevention Unit will be able to provide an adequate level of service for this proposed site. ____ There is no expected increase in personnel or equipment in order to maintain Police Department services. ~ Please forward additional information regarding this project to the Crime Prevention Unit. Estimated response time for priority 1 calls to this project: Grid 23: 2.78% of the CFS are P-1, with an A.R.T. of 03:23:00 Estimated response time for Priority 2 calls to this project: Grid 23: 27.37 % of the CFS are P-2, with an A.R.T. of 04:54:00 Comments: From 01/01/96 through 12/12/96 there were 6581 Calls For Service (CFS) within this district. 2346 of these complaints resulted in a crime report. The highest number of calls (1421) were related to disturbing the peace, with an additional 1309 miscellaneous reports (missing persons, runaways, warrant arrests, etc) , 654 theft reports and 648 burglary reports. NOTE: The above listed response times are within the recommended threshold for police services. Priority one and two calls for service together equal are more thatn 30% of the CFS, indicating a combined response time of 04:45. Thank you for the opportunity to have input into the planning process. If you should have questions, please feel free to contact me anytime at 691-5187. cc: ,CPTED PD/cpu 11/95 - Lje ~ ROUTING FORM RECEfV~"" tLJ D).TE: ._ .-January 22, 1997 JAIl: 'j __ ~ :::--,\ <- ? ,.... ~ \\'\\\. CITy " ':;:;7 ®~ \ \~.l!ZLa±So.n;~B~i)'9iriif,&'j¡oüsing BUlLDINGú& ' ~ © (\ \. '~Lippitt, Engir:eerir;g (EIR only) T1Uu",,,w~, ,.~ ~ \~ \ - ~lf SWanson, En<;[~nee:r:~ng (EIR only) '\\> ~t.'tJ ~ en'. Goldkemp, Eng-:neer-:ng (EIR only) '.\. Roger Daoust, Eng~neer~ng (IS/3, EIR/2) '\~'" ~A1ine Moore, ~st City Attorney (Draft Neg Dec « EIR) '~ Doug Perry, F~re Department Marty Schmidt, Parks & Recreation /' Crime Prevention, Police Department (M.J. Diosdado) COJlU1lunity Development, Redev. Economic Dev. only CUrrent Planning Conservation Coordinator Duane Bazzel, Advance Planning Garry williams, Landscape Planner Bob Leiter, Planning Director Chula Vista Elem. School District, Dr. Lowell Billings SWeetwater Union H.S. District, Torn Silva (IS « EIR) Maureen Roeber, Library (Final EIR) LAFCO (IS/Draft EIR - If annexation is involved) Martin Miller, Project Tracking Log (route form only) Doug Reid (CoJlU1lunity Development Projects) Other FROM: Doua Reid Environmental Section SUBJECT: Application for Initial Study (IS-97-16/FA-ZlL/DQ368 ) Checkprint Draft EIR (20 days) (EIR-_/FB-_/DQ ) Review of a Draft EIR (EIR-_/FB-_/DP) Review of Environmental Review Record (FC-_ERR-----1 Review of Draft Neg Dec (IS- /FA- /DQ- ) The Project consists of: General. Plan Amendment from Professional. and .!<ñministrative C01ll1Dercial. to Retail C01ll1Dercial. and Rezone from C-V (Visitor C01ll1Dercial.) to C-C (Retail Central COJlU1lercial.) . Location: 730 -H- street Please review the document and forward to me any cOJlU1lents you have by Feb. 5. ~997. 7[. v..Aj¡..~' J c¿ ¿}/W.J.l k ~t,l'"' . COJlU1lents: (j) ~~-~~t /. ¿:f; ¿^-~/1>E ~~'-/ /{/~L Cl t'vc..J::I 1- Q. Þ ..f!. t'1 /,¡ í) ~ r / t f!..LCl /ì J.U,./c..d . V ~ r,ÚL ì-znU,,~'j / lVA/v VVu:"l.4( JlV;¿¡;-- . - <I- I - ~r¿.-1=¿~2___. CHULA VISTA ELEMENTARY SCHOOL DISTRICT 84 EAST "J" STREET· CHULA VISTA, CALIFORNIA 91910 . 619425-9600 BOARD OF EOUCATION January 28, 1997 JOSEPH D. CUMMINGS, PhD. SHARDN GIl£S PA1RICK A. JJOO PAMElA B. SMITH Doug Reid MIKE A. SPEYÆR Mr. SUPERINTENDENT Environmental section city of Chula vista USIA s. GIL., PI1D. 276 Fourth Avenue Chula Vista, CA 91910 RE: IS-97-16 / FA-716 / DQ-368 Project: Gateway Plaza Applicant: Baron Land LLC Address: 730 "H" street, Chula Vista Dear Mr. Reid: This is to advise you that the project located at 730 \'H/' street is within the Chula Vista Elementary School District which serves children from Kindergarten through Grade 6. Mueller Elementary is the home school for this project. District enrollment has been increasing at the rate of approximately 2-3 percent over the past several years, and this is projected to continue. Permanent capacity has been exceeded at many schools and temporary relocatable classrooms are being utilized to accommodate increased enrollments. The District also buses students outside their attendance areas, both to accommodate growth and assist in achieving ethnic balance. State law currently provides for a developer fee of $.30 for non-residential area to be charged (Chula vista Elementary School District - $.14/square foot; Sweetwater Union High School District - $.16/square foot) to assist in financing facilities needed to serve growth. Since this project is a renovation of an existing building, fees will only be charged on new square footage, should any be added. If you have any questions, please contact this office. Sincerely, . - d-::!:f!7 Assistant Superintendent for Business Services and Support LB:dp - ý,'1 .- - :>weerwarer Union High School Disrrict _u_ Adminis:ration Center ~ Œ (Ç ~ 0 Wi Œ V'·: 1130 F<hhA=u, "~' Chuh Vi"_ C'¡iforni,91911-289 ffB - '1991 W (619) 691-5553 J . . I Division of Planning and Facilities , -. January 30, 1997 Mr. Doug Reid City of Chula Vista Environmental Section 276 Fourth Avenue Chula Vista, CA 91910 Dear Mr. Reid: Re: IS-97-16/FA-716/DQ368 The Sweetwarer Union High School District does not object to the proposed rezone application. School fees will be mitigated through the payment of school fees. SÏÌ-~ Thomas Silva Director of Planning TS/ml _ t..! 3- ----.-.--.....-. -~.,_....._._....-..- ----....- -.--... ........-----.-.. 1~!Œ:8~~:7g ~ 1239 Rippey St. EI Cajon, CA 92020 ;j 1J .-. February 10, 1997 Environment Review Coordinator P.O. Box 1087 Chula Vista, CA 91912 I oppose the change in zoning of 730 "H" Street from C-V (Visitor Commercial) to C-C (Retail Central Commercial). I am the owner of Bison Senior Citizen Mobile Home Park, which is located immediately behind the proposed project. This change in zoning will create noise and disturbances from increased traffic and late-night activity. This type of property zoning should not be adjaccent to residential property. I am concerned about the senior citizens who reside in my park. We now have a quiet, safe environment. I think that re-zoning would disrupt the neighborhood if bars, nightclubs, card rooms, etc. are established here. Sincerely, Jr4Jç5t~~_ Inez Patterson - '-hl- ~Œ(ÇŒn~Œ ~ Bison Mobile Home Park 708 "H" Street Chula Vista, CA 91912 FEB I 7 1997 ':I February 1997 I Environmental Review Coordinator ," P.O. Box 1087 Chula Vista, CA 91912 - We, the residents of the Bison Senior Citizen Mobile Home Park, oppose the change in zoning of 730 "H" Street, Chula Vista, from C-V (Visitor Commercial) to C-C (Retail Central Commercial). We are senior citizens and our residences are located immediately behind the proposed project. This change in zoning will create noise and disturbances from increased traffic and late-night activity. This type of property zoning should not be adjacent to residential property. As senior citizens, we are concerned about maintaining a quiet, safe environment. We feel that re-zoning would disrupt our neighborhood if bars, nightclubs, card rooms, etc. are established here. DATE NAME DATE NAME ~-) 1-( Gf, ~ / ,,^Þ1. t/ "'-&~ C/ ;....,-( 77J Ci:..R.-- ~~ .- t-(j/- .-.--.------.-- ,.....__...__.u..___........____._.._____.._.n..._..____ CHULA VISTA ELEMENTARY SCHOOL DISTRICT 84 EAST "J" STREET . CHULA VISTA, CALIFOR.>.¡lA 91910 . 619425-9600 EACH CHILD IS AN INDIVIDUAL OF GREAT ¡WORm--@ IID'LS '&Ol:§ ~ BOARD OF EDUCATION :! jr---=: ~ g,~)! JOSEPH D. CUMMINGS. PhD. March 13, 1997 ".;' \:.- 171997 iDii SHARON Gn.ES PATRX)( A..UJD ¡ L' " o ., '/ PAMElA B. SMITH ~'- I~' J.tIKE A. SPEYÆR --1: , Mr. Doug Reid ! SUPERINTENDENT I UBIA S. GIt. PhD. Environmental Section City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 RE: IS-97 -16 Project: 720 and 730 "H" Street, Chura Vista Dear Mr. Reid: This is to advise you that the projects located at 720 and 730 "H" street are within the Chula Vista Elementary School District which serves children from Kindergarten through Grade 6. Mueller Elementary is the home school for these projects. District enrollment has been increasing at the rate of approximately 2-3 percent over the past several years, and this is projected to continue. Permanent capacity has been exceeded at many schools and temporary relocatable classrooms are being utilized to accommodate increased enrollments. The District also buses students outside their attendance areas, both to accommodate growth and assist in achieving ethnic balance. State law currently provides for a developer fee of $.30 for non-residential area to be charged (Chula Vista Elementary School District - $.14/square foot; Sweetwater Union High School District - $. 16/square foot) to assist in financing facilities needed to serve growth. Since these projects are a renovation of existing buildings and/or a rezoning from visitor commercial to retail central commercial, fees will only be charged on new square footage, should any be added. If you have any questions, please contact this office. Sincerely, "- , L ell Billings Assistant Superintendent for Business Services and Support LB:dp c:feexist - ft- n I ¡i-,Lõíl'ILi, J D nœ CI1ì' OF CHUlA VISTA DISCLOSURE STATEMENT You arc required to file a Statement" of Disclosure of c:.enain ownership or financial inlerests, payments. or campaign contributions. on all matters which wilJ require discretionary action on the part of the City Council, Planning Commission, and all othcr official bodies. Thc following information must bc disclosed: 1. List the names of all persons having a financial intercst in the propcrty which is thc subjcct of the applicatio~ or the contract, e.g., owner, applicant, contractor, subcontractor, material supplier. i , BARON LAND .LLC - Owner ! 2. If any person" identified pursuant to (1) above is a corporation or partnership, list thc names of all individuals owning more than 10% of the shares in the corporation or owning any partnership intercst in the partnership. JAMES A. CLARKE, Manager 3. If any person" identified pursuant to (I) above is non-profit organization or a trust, list the names of any person serving as dircctor of the non-profit organization or as trustee or beneficiary or trustor of the trust. N7A 4. Have you had more than S250 worth of business transacted with any member of thc City staff, Boards, Commissions, Commiltees, and Council within the past twelve months? Yes_ No xx If yes, please indicate person(s): 5. Please identify each and every person, including'any agents, employees, consultants, or independent contractors who you haye assigned to represcnt you before the City in this malter. N/A 6. Have you and/or your officers or agents, in the aggregate, contributed more than $1,000 to a Councilmember in the current or preceding elcction period? Yes_ No~ If yes, state which Councilmember(s): " " " (NOTE: Date: 9/';?o/"7Þ / I Signatù'r of contractor/applicant BARON LAND LLC BY, JAMES A. CLARKE, MANAr-~R Print or type name of contractor/applicant . Pront! is drfincd Q,!: "AllY iJuiividJJal. ftnn, co-pal1nu¡hip, jow \.'CnlW'(, associatioll., soâaJ du.b, jralcnwl organizatiotJ, corporalÍon., Ulal; D1Ut, rer:eivt:t¡ syndiCal; this QJJd au)' ow COlJ.1U)', cit)' QJuJ cow1D)~ cUy l1UlJÛcipa/iry, district, or other po/ideal subdivisioll, or OIl)' otht:r group or cotnbimlliotl aering as Q uniL" _ Lp7 1- - -- ~ ._.,......._.._._._--~--_._- -.-. COUNCIL AGENDA STATEMENT Item /3 Meeting Date ADril 22. 1997 ITEM TITLE: ,,1. RESOLUTION /~YJ AUTHORIZING AND APPROVING THE BORROWING OF FUNDS FOR FISCAL YEAR 1997-98; THE ISSUANCE AND SALE OF A 1997-98 TAX AND REVENUE ANTICIPATION NOTE THEREFORE AND PARTICIPATION IN THE CALIFORNIA COMMUNITIES CASH FLOW FINANCING PROGRAM ß. RESOLUTION /ß"'¿¿'~TING THE CITY MANAGER TO INCLUDE IN THE FISCAL YEAR 1997-98 PROPOSED BUDGET APPROPRIATIONS OF $409,800 FOR TAX AND REVENUE ANTICIPATION NOTE PROJECTED INTEREST AND ISSUANCE COSTS AND ESTIMATED INTEREST REVENUES OF $409,800 FROM INVESTMENT OF THE NOTE PROCEEDS SUBMITTED BY: D;""o, of F;n",yY' ~ REVIEWED BY: City Manager J1 tcr .--, (4/5ths Vote: Yes _No~) SUMMARY: In order to address cash shortfalls that are projected to occur in the General Fund during Fiscal Year 1997-98, it is recommended that the City again take advantage of the opportunity to borrow money on a short-term basis at the lowest cost by issuing a Tax and Revenue Anticipation Note (TRAN) through the pooled financing program sponsored by the League of California Cities. Such a borrowing is recommended as an alternative to borrowing from other City Funds in order to cover the temporary cash shortfalls that occur in the General Fund during the year due to the cyclical nature of some of our major revenue sources. . ~ RECOMMENDATION: Adopt the resolutions which: 1. Authorize the borrowing of a maximum of $10.1 million for fiscal year 1997-98 by issuance of a TRAN through the California Communities Cash Flow Financing Program dated July 1, 1997 and with a maturity not to exceed 15 months; 2. Authorize various financing documentation, including a purchase agreement (attached) and an Indenture which is on file with the Finance Department. /~/ ...---....-------.- Page 2. Item /5 Meeting Date 4/22/97 3. Authorize the Director of Finance and the Assistant Director of Finance to sign the financing documentation in connection with the issuance. 4. Approve the team of financing experts selected by CSCDA. 5. Direct the City Manager to include the estimated interest cost of the borrowing and estimated interest revenues from investment of the note proceeds in the fiscal year 1997-98 proposed budget. DISCUSSION: Not unlike most public agencies that rely on property tax revenues to fund a significant portion of their operations, the City's reserves are insufficient to provide enough cash during certain times of the year to cover our fairly consistent expenditure patterns until the tax revenue is received. This is most acute early in each fiscal year prior to receiving the first large property tax apportionment in mid-December. TRAN's are the most common vehicle used by local government entities to obtain large amounts of cash on a short-term basis, and as explained under Fiscal Impact, are typically less expensive than internal borrowing from other restricted Funds. Issuing TRAN's is an established annual event for many local government entities, including the County, and the Cities of San Diego, Oceanside, EI Cajon, and La Mesa. In addition, many school districts also issue TRAN's on an annual basis. The City of Chula Vista issued their first TRAN in Fiscal Year 1996-97. Basically, money is borrowed through the municipal market by issuing a one year note at short-term tax exempt rates and the proceeds are invested until needed to cover shortfalls. All money borrowed, plus interest is repaid near the end of the fiscal year from any unrestricted revenues of the City. With the difference in the interest rate earned vs. paid (current spread 1.5% - 2.0%), there is often the opportunity to actually earn a small amount of arbitrage (net earnings based on the difference in the interest rate paid v. earned) on this type of borrowing, although this possibility has been severely curtailed with recent federal tax law changes which limit the amount borrowed. The California Statewide Communities Development Authority (CSCDA), sponsored by the League of California Cities and the California State Association of Counties, has operated a pooled TRAN program for member agencies for several years. The CSCDA Pool for FY 97 included 63 different local government entities. For the small issuer as the City of Chula Vista would be when compared to larger Counties and Schools, the pooled concept offers significant savings through sharing the costs of issuance, a streamlined process, greater market access normally afforded only large issuers, etc. /5-- 2 , I - Page 3, Item 15 Meeting Date 4122197 It should be noted that when the TRAN is actually priced in mid-June, in the unlikely event that the interest rate actually achieved is so high as to make the TRANS borrowing more expensive than an internal borrowing, we can and will abort the transaction at that time with no cost to the City and return to Council with information regarding internal borrowing alternatives. In any event, an informational item describing the results of the process would be presented to Council at that time. In order to cover cash shortfalls during Fiscal Year 1996-97 the City issued a $5,970,000 TRAN through the program described. The borrowing resulted in a net cost of approximately $13,650 (borrowing cost less investment interest earned on note proceeds). However, when compared to the cost of an internal borrowing at the City's investment pool interest rate, the TRAN process resulted in a savings of approximately $90,000. FISCAL IMPACT: Very preliminary cash flow projections show that the General Fund could incur a maximum temporary cash shortfall of approximately $ 7.2 million in early December based on a balanced budget of $61.4 million. Under current federal tax laws, the City may borrow on a tax exempt basis an amount not to exceed the projected maximum deficit plus a reasonable working capital reserve, which is calculated at $2.9 million based on a prescribed formula. This formula results in a maximum borrowing level of $10,090,903. The CSCDA financing team is currently estimating an interest rate on the TRANS of 4.25%, and a cost of issuance of $23,000 for the City. Given these projections, the cost of the TRANS would be $409,800 (interest of $386,800 and cost of issuance of $23,000). Estimated revenue from investing the proceeds of the borrowing at the weighted average pool earnings rate (5.5%) until needed is conservatively projected to be at least equal to the cost of the borrowing. Therefore, the net cost of the TRANS issue is estimated to be zero. If an internal borrowing is utilized in place of the recommended TRANS issue, the cost to the General Fund would be approximately $102,000 in interest cost (5.5% interest rate) which it would have to pay to the pool in order to keep all other City Funds, especially restricted Funds, whole. In summary, it is estimated that the TRANS issue would save the City approximately $102,000 during fiscal year 1996-97 when compared to the cost of internal borrowing. /5;-.3 "-~..._--~----_.- RESOLUTION NO. / g--¿. Y....5 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING AND APPROVING THE BORROWING OF FUNDS FOR FISCAL YEAR 1997-1998; THE ISSUANCE AND SALE OF A 1997-1998 TAX AND REVENUE ANTICIPATION NOTE THEREFOR AND PARTICIPATION IN THE CALIFORNIA COMMUNITIES CASH FLOW FINANCING PROGRAM WHEREAS, local agencies are authorized by section 53850 to 53858, both inclusive, of the Government Code of the State of California (the "Act") (being Article 7.6, Chapter 4, Part 1, Division 2, Title 5 of the Government Code) to borrow money by the issuance of temporary notes; WHEREAS, the legislative body (the "Legislative Body") of the local agency specified in section 25 hereof (the "Local Agency") has determined that a sum (the "Principal Amount"), not to exceed the Maximum Amount of Borrowing specified in section 25 hereof, which Principal Amount is to be confirmed and set in the Pricing Confirmation (as defined in Section 4 hereof), is needed for the requirements of the Local Agency, to satisfy obligations of the Local Agency, and that it is necessary that said Principal Amount be borrowed for such purpose at this time by the issuance of a note therefor in anticipation of the receipt of taxes, income, revenue, cash receipts and other moneys to be received by the Local Agency for the general fund of the Local Agency attributable to its fiscal year ending June 30, 1998 ("Fiscal Year 1997-1998"); WHEREAS, the Local Agency hereby determines to borrow, for the purposes set forth above, the Principal Amount by the issuance of the Note (as hereinafter defined); WHEREAS, it appears, and this Legislative Body hereby finds and determines, that the principal Amount, when added to the interest payable thereon, does not exceed eighty-five percent (85%) of the estimated amount of the uncollected taxes, income, revenue (including, but not limited to, revenue from the state and federal governments), cash receipts and other moneys of the Local Agency attributable to Fiscal Year 1997-1998 and available for the payment of the principal of the Note and the interest thereon; WHEREAS, no money has heretofore been borrowed by or on behalf of the Local Agency through the issuance of tax anticipation notes or temporary notes in anticipation of the receipt of, or payable from or secured by, taxes, income, revenue, cash receipts or other moneys for Fiscal Year 1997-1998; WHEREAS, pursuant to Section 53856 of the Act, certain moneys which will be received by the Local Agency during and 1 /~~/ '-"--."'--"'--'-" -. ..- ,-_.,., -.....- _._.__._-~,._.._-".._--_.,.,---~-- attributable to Fiscal Year 1997-1998 can be pledged for the payment of the principal of the Note and the interest thereon (as hereinafter provided); WHEREAS, the Local Agency has determined that it is in the best interests of the Local Agency to participate in the California Communities Cash Flow Financing Program (the "program") , whereby participating local agencies (collectively, the "Issuers") will simultaneously issue tax and revenue anticipation notes; WHEREAS, the Program requires the participating Issuers to sell their tax and revenue anticipation notes to the California statewide Communities Development Authority (the "Authority") pursuant to note purchase agreements (collectively, "Purchase Agreements") , each between such individual Issuer and the Authority, and dated as of the date of the Pricing Confirmation, a form of which has been submitted to the Legislative Body; WHEREAS, the Authority, in consultation with Sutro & Co. Incorporated, as financial advisor for the Program (the "Financial Advisor") , will form one or more pools of notes (the "Pooled Notes") and assign each note to a particular pool (the "Pool") and sell a series (the "Series") of bonds (the "Bonds") secured by each Pool pursuant to an indenture (the "Indenture" ) between the Authority and u.s. Trust Company of California, N.A. , as trustee (the "Trustee"), each series distinguished by whether or what type(s} of Credit Instrument(s} (as hereinafter defined) secure(s) such Series, by the principal amounts of the notes assigned to the Pool or by other factors, and the Local Agency hereby acknowledges and approves the discretion of the Authority to assign the Note to such Pool and such Indenture as the Authority may determine; WHEREAS, as additional security for the owners of each Series of Bonds, all or a portion of the payments by all of the Issuers of the notes assigned to such Series may or may not be secured (by virtue or in form of the Bonds, as indicated in the Pricing Confirmation, being secured in whole or in part) by an irrevocable letter (or letters) of credit or policy (or policies) of insurance or proceeds of a separate bond issue issued for such purpose (the "Reserve Fund") or other credit instrument (or instruments) (collectively, the "Credit Instrument") issued by the credit provider or credit providers designated in the Indenture, as finally executed (collectively, the "Credit Provider"), pursuant to a credit agreement or agreements or commitment letter or letters or, in the case of the Reserve Fund, an indenture (the "Reserve Indenture" ) (collectively, the "Credit Agreement") between (i) in the case of an irrevocable letter (or letters) of credit or policy (or policies) of insurance, the Authority and the respective Credit Provider and (ii) in the case of the Reserve Fund, the Authority and u.S. Trust Company of California, N.A. , as trustee of the Reserve Indenture (the "Reserve Trustee"); 2 ~,~ --_._.....~.._-,-_.....,.__..-. -".- ".- "'---"---"'~"'""'-"'-"'-------""--"~ WHEREAS, if, as designated in the Pricing Confirmation, the Credit Instrument is the Reserve Fund, bonds issued pursuant to the Reserve Indenture (the "Reserve Bonds") may, as indicated in the Pricing Confirmation, be secured by an irrevocable letter of credit or policy of insurance or other credit instrument (the "Reserve Credit Instrument") issued by the credit provider identified in the Reserve Indenture as finally executed (the "Reserve Credit Provider"), pursuant to a credit agreement or commitment letter (the "Reserve Credit Agreement") identified in the Reserve Indenture as finally executed, such Reserve Credit Agreement being between the Authority and the Reserve Credit Provider; WHEREAS, the net proceeds of the Note may be invested by the Local Agency in Permitted Investments (as defined in the Indenture) or in any other investment permitted by the laws of the state of California, as now in effect and as hereafter amended, modified or supplemented from time to time; WHEREAS, as part of the Program each participating Issuer approves the Indenture, the alternative forms of Credit Agreements, if any, and the alternative forms of Reserve Credit Agreements, if any, in substantially the forms presented to the Legislative Body, with the final form of Indenture, type of Credit Instrument and corresponding Credit Agreement and type of Reserve Credit Instrument and corresponding Reserve Credit Agreement, if any, to be determined and approved by delivery of the Pricing Confirmation; WHEREAS, pursuant to the Program each participating Issuer will be responsible for its share of (a) the fees of the Trustee and the costs of issuing the applicable Series of Bonds, and (b), if applicable, the fees of the Credit Provider, the fees of the Reserve Credit Provider (which shall be payable from, among other sources, investment earnings on the Reserve Fund and moneys in the Costs of Issuance Fund established and held under the Indenture), the Issuer's allocable share of all Predefault Obligations and the Issuer's Reimbursement Obligations, if any (each as defined in the Indenture); WHEREAS, pursuant to the Program each participating Issuer will be responsible for its share of the fees of the Reserve Trustee and the costs of issuing the applicable Series of Reserve Bonds, all such costs and fees being payable from the proceeds of the applicable Series of Bonds (or, with respect to costs and fees of the Reserve Credit Provider, as may otherwise be provided in the Reserve Indenture); WHEREAS, pursuant to the Program, the underwriter will submit an offer to the Authority to purchase, in the case of each Pool of Notes, the Series of Bonds which will be secured by the Indenture to which such Pool will be assigned; 3 /~:7 .--.'--.-.--.---,-- .~_.,--_..._--- '" ...-...---.............-------- WHEREAS, it is necessary to engage the services of certain professionals to assist the Local Agency in its participation in the Program; NOW, THEREFORE, the Legislative Body hereby finds, determines, declares and resolves as follows: section 1. Recitals. This Legislative Body hereby finds and determines that all the above recitals are true and correct. section 2. Authorization of Issuance. This Legislative Body hereby determines to borrow solely for the purpose of anticipating taxes, income, revenue, cash receipts and other moneys to be received by the Local Agency for the general fund of the Local Agency attributable to Fiscal Year 1997-1998, by the issuance of a note in the Principal Amount under Sections 53850 et seq. of the Act, designated the Local Agency's "1997-1998 Tax and Revenue Anticipation Note" (the "Note"), to be issued in the form of one fully registered note at the Principal Amount thereof, to be dated the date of its delivery to the initial purchaser thereof, to mature (without option of prior redemption) not more than fifteen months thereafter on a date indicated on the face thereof and determined in the pricing Confirmation (the "Maturity Date"), and to bear interest, payable at maturity (and if the maturity is more than twelve months from the date of issuance, payable on the interim payment date set forth in the Pricing Confirmation) and computed upon the basis of a 360-day year consisting of twelve 30-day months, at a rate not to exceed ten percent (10%) per annum as determined in the pricing Confirmation and indicated on the face of the Note (the "Note Rate"). If the Series of Bonds issued in connection with the Note is secured in whole or in part by a Credit Instrument or such Credit Instrument (other than the Reserve Fund) secures the Note in whole or in part and all principal of and interest on the Note is not paid in full at maturity or if payment of principal of and/or interest on the Note is paid (in whole or in part) by a draw under, payment by or claim upon a Credit Instrument which draw, payment or claim is not fully reimbursed on such date, such Note shall become a Defaulted Note (as defined in the Indenture), and the unpaid portion (including the interest component, if applicable) thereof (or the portion (including the interest component, if applicable) thereof with respect to which a Credit Instrument applies for which reimbursement on a draw, payment or claim has not been fully made) shall be deemed outstanding and shall continue to bear interest thereafter until paid at the Default Rate (as defined in the Indenture). If the Credit Instrument is the Reserve Fund and the Reserve Bonds issued to fund the Reserve Fund are secured by the Reserve Credit Instrument and a Drawing (as defined in the Indenture) pertaining to the Note is not fully reimbursed by the Reserve Principal Payment Date (as defined in the Indenture), such Note shall become a Defaulted Reserve Note (as defined in the Indenture), and the unpaid portion (including the interest component, if applicable) 4 /5:1 ~£/ ____.~ .._.._...._.._... _.u._.o_. ___"_'_'~___'__""____~___'___'__'_ thereof (or portion (including the interest component, if applicable) with respect to which the Reserve Fund applies for which reimbursement on a Drawing has not been fully made) shall be deemed outstanding and shall continue to bear interest thereafter until paid at the Default Rate. If the Note or the Series of Bonds issued in connection with the Note is unsecured in whole or in part and the Note is not fully paid at maturity, the unpaid portion thereof (or the portion thereof to which no Credit Instrument applies which is unpaid) shall be deemed outstanding and shall continue to bear interest thereafter until paid at the Default Rate. In each case set forth in the preceding three sentences, the obligation of the Local Agency with respect to such Defaulted Note or unpaid Note shall not be a debt or liability of the Local Agency prohibited by Article XVI, section 18 of the California Constitution and the Local Agency shall not be liable thereon except to the extent of any available revenues attributable to Fiscal Year 1997-1998, as provided in section 8 hereof. The percentage of the Note to which a Credit Instrument, if any, applies (the "Secured Percentage") shall be equal to the amount of the Credit Instrument divided by the aggregate amount of unpaid principal of and interest on the unpaid notes (or portions thereof) of all Issuers, expressed as a percentage (but not greater than 100%) as of the maturity date. The percentage of the Note to which the Reserve Credit Instrument, if any, applies (the "Secured Reserve Percentage") shall be equal to the amount of the Reserve Credit Instrument divided by the aggregate amount of unpaid principal of and interest on such unpaid notes (or portions thereof, including the interest component, if applicable), expressed as a percentage (but not greater than 100%) as of the Reserve Principal Payment Date. Both the principal of and interest on the Note shall be payable in lawful money of the United States of America. The principal of and interest on the Note at maturity shall be paid upon surrender of the Note at the corporate trust office of U.S. Trust Company of California, N.A. in Los Angeles, California. The Note shall be issued in conjunction with the note or notes of one or more other Issuers as part of the Program and within the meaning of section 53853 of the Act. section 3. Form of Note. The Note shall be issued in fully registered form without coupons and shall be sUbstantially in the form and substance set forth in Exhibit A as attached hereto and by reference incorporated herein, the blanks in said forms to be filled in with appropriate words and figures. section 4. Sale of Note; Delegation. The Note shall be sold to the Authority pursuant to the Purchase Agreement. The form of the Purchase Agreement, including the form of the pricing confirmation supplement (the "pricing Confirmation") set forth as Exhibit A thereto, presented to this meeting are hereby approved. 5 /S/J ~ .-."----...-- ---.-.-...--.---.,.,.. ....... .'-'-' ,---..-.-. - - ---- The authorized representatives set forth in section 25 hereof (the "Authorized Representatives") are each hereby authorized and directed to execute and deliver the Purchase Agreement in substantially said form, with such changes thereto as such Authorized Representative shall approve, such approval to be conclusively evidenced by his or her execution and delivery thereof; provided, however, that the Purchase Agreement shall not be effective and binding on the Local Agency until the execution and delivery of the Pricing Confirmation. The Authorized Representatives are each hereby further authorized and directed to execute and deliver the Pricing Confirmation in substantially said form, with such changes thereto as such Authorized Representative shall approve, such approval to be conclusively evidenced by his or her execution and delivery thereof; provided, however, that the interest rate on the Note shall not exceed ten percent (10%) per annum, the discount on the Note, when added to the Local Agency's share of the costs of issuance of the Bonds, shall not exceed one percent (1.0%), and the Principal Amount shall not exceed the Maximum Amount of Borrowing. Delivery of an executed copy of the Pricing Confirmation by fax or telecopy shall be deemed effective execution and delivery for all purposes. Section 5. Program Approval. The Pricing Confirmation shall indicate whether and what type of Credit Instrument and, if applicable, Reserve Credit Instrument will apply. The forms of Indenture, alternative general types and forms of Credit Agreements, if any, and alternative general types and forms of Reserve Credit Agreements, if any, presented to this meeting are hereby acknowledged, and it is acknowledged that the Authority will execute and deliver the Indenture, one or more Credit Agreements, if applicable, and one or more Reserve Credit Agreements, if applicable, which shall be identified in the Pricing Confirmation, in substantially one or more of said forms with such changes therein as the Authorized Representative who executes the Pricing Confirmation shall require or approve (substantially final forms of the Indenture, the Credit Agreement and, if applicable, the Reserve Credit Agreement are to be delivered to the Authorized Representative concurrent with the Pricing Confirmation), such approval of the Authorized Representative and this Legislative Body to be conclusively evidenced by the execution of the Pricing Confirmation. If the Credit Agreement identified in the Pricing Confirmation is the Reserve Indenture, it is acknowledged that the Authority will issue the Reserve Bonds pursuant to and as provided in the Reserve Indenture as finally executed. Anyone of the Authorized Representatives of the Local Agency is hereby authorized and directed to provide the Financial Advisor or the underwriter with such information relating to the Local Agency as the Financial Advisor or the underwriter shall reasonably request for inclusion in the Preliminary Official 6 /Sd--¿' .,'""" -- .~, -_...-----,--_._._~----- statement and Official statement of the Authority. Upon inclusion of the information relating to the Local Agency therein, the Preliminary Official statement and Official statement or such other offering document is, except for certain omissions permitted by Rule 15c2-12 of the Securities Exchange Act of 1934, as amended (the "Rule"), hereby deemed final within the meaning of the Rule with respect to the Local Agency and any Authorized Representative of the Local Agency is authorized to execute a certificate to such effect. If, at any time prior to the end of the underwriting period, as defined in the Rule, any event occurs as a result of which the information contained in the Preliminary Official Statement or other offering document relating to the Local Agency might include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading, the Local Agency shall promptly notify the Financial Advisor and the underwriter. Subject to section 8 hereof, the Local Agency hereby agrees that if the Note shall become a Defaulted Note, the unpaid portion (including the interest component, if applicable) thereof or the portion (including the interest component, if applicable) to which a Credit Instrument applies for which full reimbursement on a draw, payment or claim has not been made by the Maturity Date shall be deemed outstanding and shall not be deemed to be paid until (i) any Credit Provider providing a Credit Instrument with respect to the Note or the Series of Bonds issued in connection with the Note, has been reimbursed for any drawings, payments or claims made under or from the Credit Instrument with respect to the Note, including interest accrued thereon, as provided therein and in the applicable Credit Agreement, and, (ii) the holders of the Note, or Series of the Bonds issued in connection with the Note, are paid the full principal amount represented by the unsecured portion of the Note plus interest accrued thereon (calculated at the Default Rate) to the date of deposit of such aggregate required amount with the Trustee. For purposes of clause (ii) of the preceding sentence, holders of the Series of Bonds will be deemed to have received such principal amount upon deposit of such moneys with the Trustee. Subj ect to section 8 hereof, the Local Agency hereby agrees that if the Note shall become a Defaulted Reserve Note, the unpaid portion (including the interest component, if applicable) thereof or the portion (including the interest component, if applicable) to which a Reserve Credit Instrument, if any, applies for which full reimbursement on a Drawing has not been made by the Reserve Principal Payment Date shall be deemed outstanding and shall not be deemed paid until (i) any Reserve Credit Provider providing a Reserve Credit Instrument with respect to the Reserve Bonds (against the Reserve Fund of which such Drawing was made) has been reimbursed for any Drawing or payment made under the Reserve Credi t Instrument with respect to the Note, including interest 7 jJ:1r? -- --....-.....--..-.--. --..--,--..- ,-. ....,.-..- _,. .... _,u_,__ _ _.d__,_'_ accrued thereon, as provided therein and in the Reserve Credit Agreement, and (ii) the holders of the Note, or series of Bonds issued in connection with the Note, are paid the full principal amount represented by the unsecured portion of the Note plus interest accrued thereon (calculated at the Default Rate) to the date of deposit of such aggregate required amount with the Trustee. For the purposes of clause (ii) of the preceding sentence, holders of the series of Bonds will be deemed to have received such principal amount upon deposit of such moneys with the Trustee. The Local Agency agrees to payor cause to be paid, in addi tion to the amounts payable under the Note, any fees or expenses of the Trustee and, to the extent permitted by law, if the Local Agency's Note is secured in whole or in part by a Credit Instrument and, if applicable, a Reserve Credit Instrument (by virtue of the fact that the Series of Bonds is secured by a Credit Instrument and, if applicable, Reserve Bonds are secured by a Reserve Credit Instrument), any Predefault obligations and Reimbursement Obligations (to the extent not payable under the Note), (i) arising out of an "Event of Default" hereunder (or pursuant to section 7 hereof) or (ii) arising out of any other event (other than an event arising solely as a result of or otherwise attributable to a default by any other Issuer). In the case described in (ii) above with respect to Predefault Obligations, the Local Agency shall owe only the percentage of such fees, expenses and Predefault obligations equal to the ratio of the principal amount of its Note over the aggregate principal amounts of all notes, including the Note, of the Series of which the Note is a part, at the time of original issuance of such Series. Such additional amounts will be paid by the Local Agency within twenty-five (25) days of receipt by the Local Agency of a bill therefor from the Trustee. section 6. No Joint obligation. The Note will be issued in conjunction with a note or notes of one or more other Issuers, assigned to secure a series of Bonds. In all cases, the obligation of the Local Agency to make payments on or in respect to its Note is a several and not a joint obligation and is strictly limited to the Local Agency's repayment obligation under this Resolution and the Note. section 7. Disposition of Proceeds of Note. A portion of the moneys received from the sale of the Note in an amount equal to the Local Agency's share of the costs of issuance (which shall include any fees and expenses in connection with any Credit Instrument (and the Reserve Credit Instrument, if any) applicable to the Note or Series of Bonds and the corresponding Reserve Bonds, if any) shall be deposited in the Costs of Issuance Fund held and invested by the Trustee under the Indenture and expended as directed by the Authority on costs of issuance as provided in the Indenture. The balance of the moneys received from the sale of the Note to the Authority shall be deposited in the Local Agency's 8 ¡£1~ð ----",'----"-'-'."'--- ---.--.-- _.~,.. --------.- ~._,._-----~.- Proceeds Subaccount hereby authorized to be created pursuant to, and held and invested by the Trustee under, the Indenture for the Local Agency and said moneys may be used and expended by the Local Agency for any purpose for which it is authorized to use and expend moneys, upon requisition from the Proceeds Subaccount as specified in the Indenture. Amounts in the Proceeds Subaccount are hereby pledged to the payment of the Note. The Trustee will not create subaccounts within the Proceeds Fund, but will keep records to account separately for proceeds of the Bonds allocable to the Local Agency's Note on deposit in the Proceeds Fund which shall constitute the Local Agency's Proceeds Subaccount. section 8. Source of Payment. (A) The principal amount of the Note, together with the interest thereon, shall be payable from taxes, income, revenue (including, but not limited to, revenue from the state and federal governments), cash receipts and other moneys which are received by the Local Agency for the general fund of the Local Agency and are attributable to Fiscal Year 1997-1998 and which are available for payment thereof. As security for the payment of the principal of and interest on the Note, the Local Agency hereby pledges certain unrestricted revenues (as hereinafter provided, the "Pledged Revenues") which are received by the Local Agency for the general fund of the Local Agency and are attributable to Fiscal Year 1997-1998, and the principal of the Note and the interest thereon shall constitute a first lien and charge thereon and shall be payable from the first moneys received by the Local Agency from such Pledged Revenues, and, to the extent not so paid, shall be paid from any other taxes, income, revenue, cash receipts and other moneys of the Local Agency lawfully available therefor (all as provided for in sections 53856 and 53857 of the Act). The term "unrestricted revenues" shall mean all taxes, income, revenue (including, but not limited to, revenue from the state and federal governments), cash receipts, and other moneys, intended as receipts for the general fund of the Local Agency attributable to Fiscal Year 1997-1998 and which are generally available for the payment of current expenses and other obligations of the Local Agency. The Noteholders, Bondholders, Credit Provider and, if applicable, the Reserve Credit Provider shall have a first lien and charge on such certain unrestricted revenues as hereinafter provided which are received by the Local Agency and are attributable to Fiscal Year 1997-1998. In order to effect the pledge referenced in the preceding paragraph, the Local Agency hereby agrees and covenants to establish and maintain a special account within the Local Agency's general fund to be designated the "1997-1998 Tax and Revenue Anticipation Note Payment Account" (the "Payment Account") and further agrees and covenants to maintain the Payment Account until the payment of the principal of the Note and the interest thereon. Notwithstanding the foregoing, if the Local Agency elects to have 9 /M~/ ....- . .-..---.,--...--.-".,. ..- -'-""~."'._---_..._----_.._..- -..-.....--.--- Note proceeds invested in Permitted Investments to be held by the Trustee pursuant to the Pricing Confirmation, a subaccount of the Payment Account (the "Payment Subaccount") shall be established for the Local Agency under the Indenture and proceeds credited to such account shall be pledged to the payment of the Note. The Trustee need not create a subaccount, but may keep a record to account separately for proceeds of the Note so held and invested by the Trustee which record shall constitute the Local Agency's Proceeds Subaccount. Transfers from the Payment Subaccount shall be made in accordance with the Indenture. The Local Agency agrees to transfer to and deposit in the Payment Account the first amounts received in the months specified in the Pricing Confirmation as Repayment Months (each individual month a "Repayment Month" and collectively "Repayment Months") (and any amounts recei ved thereafter attributable to Fiscal Year 1997-1998) until the amount on deposit in the Payment Account, together with the amount, if any, on deposit in the Payment Subaccount, is equal in the respective Repayment Months identified in the pricing Confirmation to the percentage of the principal and interest due on the Note specified in the pricing Confirmation. In making such transfer and deposit, the Local Agency shall not be required to physically segregate the amounts to be transferred to and deposited in the Payment Account from the Local Agency's other general fund moneys, but, notwithstanding any commingling of funds for investment or other purposes, the amounts required to be transferred to and deposited in the Payment Account shall nevertheless be subject to the lien and charge created herein. Anyone of the Authorized Representatives of the Local Agency is hereby authorized to approve the determination of the Repayment Months and percentages of the principal and interest due on the Note required to be on deposit in the Payment Account and/or the Payment Subaccount in each Repayment Month, all as specified in the Pricing Confirmation, by executing and delivering the pricing Confirmation, such execution and delivery to be conclusive evidence of approval by this Legislative Body and such Authorized Representative; provided, however, that the maximum number of Repayment Months shall be six and the maximum amount of Pledged Revenues required to be deposited in each Repayment Month shall not exceed fifty percent (50%) of the aggregate principal and interest due on the Note. In the event on the day in each such Repayment Month that a deposit to the Payment Account is required to be made, the Local Agency has not received sufficient unrestricted revenues to permit the deposit into the Payment Account of the full amount of Pledged Revenues to be deposited in the Payment Account from said unrestricted revenues in said month, then the amount of any deficiency shall be satisfied and made up from any other moneys of the Local Agency lawfully available for the payment of the principal of the Note and the interest thereon, as and when such other moneys are received or are otherwise legally available. (B) Any moneys placed in the Payment Account or the Payment Subaccount shall be for the benefit of (i) the holder of 10 __ 13/1-/0 - .-.. _._,"--- the Note and the holders of Bonds issued in connection with the Notes, (ii) (to the extent provided in the Indenture) the Credit Provider, if any, and (iii) (to the extent provided in the Indenture and, if applicable, the Credit Agreement) the Reserve Credit Provider, if any. The moneys in the Payment Account and the Payment Subaccount shall be applied only for the purposes for which such Accounts are created until the principal of the Note and all interest thereon are paid or until provision has been made for the payment of the principal of the Note at maturity with interest to maturity (in accordance with the requirements for defeasance of the Bonds as set forth in the Indenture) and, if applicable, (to the extent provided in the Indenture and, if applicable, the Credit Agreement) the payment of all Predefault Obligations and Reimbursement Obligations owing to the Credit Provider and, if applicable, the Reserve Credit Provider. (C) The Local Agency hereby directs the Trustee to transfer on the Note Payment Deposit Date (as defined in the Indenture), any moneys in the Payment Subaccount to the Bond Payment Fund (as defined in the Indenture). In addition, on the Note Payment Deposit Date, the moneys in the Payment Account shall be transferred by the Local Agency to the Trustee, to the extent necessary (after crediting any transfer pursuant to the preceding sentence), to pay the principal of and/or interest on the Note or to reimburse the Credit Provider for payments made under or pursuant to the Credit Instrument. In the event that moneys in the Payment Account and/or the Payment Subaccount are insufficient to pay the principal of and interest on the Note in full when due, such moneys shall be applied in the following priority: first to pay interest on the Note; second to pay principal of the Note; third to reimburse the Credit Provider for payment, if any, of interest with respect to the Note; fourth to reimburse the Credit Provider for payment, if any, of principal with respect to the Note; fifth to reimburse the Reserve Credit Provider, if any, for payment, if any, of interest with respect to the Note; sixth to reimburse the Reserve Credit Provider, if any, for payment, if any, of principal with respect to the Note; and seventh to pay any Reimbursement Obligations of the Local Agency and any of the Local Agency's pro rata share of Predefault Obligations owing to the Credit Provider and Reserve Credit Provider (if any) as applicable. Any moneys remaining in or accruing to the Payment Account and/or the Payment Subaccount after the principal of the Note and the interest thereon and any Predefault Obligations and Reimbursement Obligations, if applicable, have been paid, or provision for such payment has been made, shall be transferred to the general fund of the Local Agency, sUbject to any other disposition required by the Indenture, or, if applicable, the Credit Agreement. Nothing herein shall be deemed to relieve the Local Agency from its obligation to pay its Note in full on the Maturity Date. (D) Moneys in the Proceeds Subaccount and in the Payment Subaccount shall be invested by the Trustee pursuant to the 11 1M 'ij ~......_._._-~-------"-_... ".'....-.-'.------- ,-,-- '._,----------.- --...--.- ....,-.-... Indenture as directed by the Local Agency in Permitted Investments as described in and under the terms of the Indenture. Any such investment by the Trustee shall be for the account and risk of the Local Agency, and the Local Agency shall not be deemed to be relieved of any of its obligations with respect to the Note, the Predefault Obligations or Reimbursement obligations, if any, by reason of such investment of the moneys in its Proceeds Subaccount or the Payment Subaccount. (E) At the written request of the Credit Provider, if any, or the Reserve Credit Provider, if any, the Local Agency shall, within ten (10) Business Days following the receipt of such written request, file such report or reports to evidence the transfer to and deposit in the Payment Account required by this section 8 and provide such additional financial information as may be required by the Credit Provider, if any, or the Reserve Credit provider, if any. section 9. Execution of Note. Anyone of the Authorized Representatives of the Local Agency or any other officer designated by the Legislative Body shall be authorized to execute the Note by manual or facsimile signature and the Secretary or Clerk of the Legislati ve Body of the Local Agency, or any duly appointed assistant thereto, shall be authorized to countersign the Note by manual or facsimile signature. said Authorized Representative of the Local Agency, is hereby authorized to cause the blank spaces of the Note to be filled in as may be appropriate pursuant to the pricing Confirmation. The Authorized Representative is hereby authorized and directed to cause the Authority to assign the Note to the Trustee, pursuant to the terms and conditions of the Purchase Agreement, this Resolution and the Indenture. In case any Authorized Representative whose signature shall appear on any Note shall cease to be an Authorized Representative before the delivery of such Note, such signature shall nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in office until delivery. The Note need not bear the seal of the Local Agency, if any. section 10. Intentionally Left Blank. This section has been included to preserve the sequence of section numbers for cross-referencing purposes. section 11. Representations and Covenants of the Local Agency. The Local Agency makes the following representations for the benefit of the holder of the Note, the owners of the Bonds, the Credit Provider, if any, and the Reserve Credit Provider, if any: (A) The Local Agency is duly organized and existing under and by virtue of the laws of the State of California and has all necessary power and authority to (i) adopt this Resolution and 12 /~'lc2 - - ~....__.._.,--"-----".---- .~--"------- _m._.___...··..·__· perform its obligations thereunder, (ii) enter into and perform its obligations under the Purchase Agreement, and (iii) issue the Note and perform its obligations thereunder. (B) (i) Upon the issuance of the Note, the Local Agency shall have taken all action required to be taken by it to authorize the issuance and delivery of the Note and the performance of its obligations thereunder, and (ii) the Local Agency has full legal right, power and authority to issue and deliver the Note. (C) The issuance of the Note, the adoption of the Resolution and the execution and delivery of the Purchase Agreement, and compliance with the provisions hereof and thereof do not conflict with, breach or violate any law, administrative regulation, court decree, resolution, charter, by-laws or other agreement to which the Local Agency is subject or by which it is bound. (D) Except as may be required under blue sky or other securities laws of any state or section 3(a) (2) of the Securities Act of 1933, there is no consent, approval, authorization or other order of, or filing with, or certification by, any regulatory authority having jurisdiction over the Local Agency required for the issuance and sale of the Note or the consummation by the Local Agency of the other transactions contemplated by this Resolution, except those the Local Agency shall obtain or perform prior to or upon the issuance of the Note. (E) The Local Agency has (or will have prior to the issuance of the Note) duly, regularly and properly adopted a preliminary budget for Fiscal Year 1997-1998 setting forth expected revenues and expenditures and has complied with all statutory and regulatory requirements with respect to the adoption of such budget. The Local Agency hereby covenants that it shall (i) duly, regularly and properly prepare and adopt its final budget for Fiscal Year 1997-1998, (ii) provide to the Trustee, the Credit Provider, if any, the Reserve Credit Provider, if any, and the Financial Advisor and the underwriter, promptly upon adoption, copies of such final budget and of any subsequent revisions, modifications or amendments thereto and (iii) comply with all applicable laws pertaining to its budget. (F) The sum of the principal amount of the Local Agency's Note plus the interest payable thereon, on the date of its issuance, shall not exceed fifty percent (50%) of the estimated amounts of the Local Agency's uncollected taxes, income, revenue (including, but not limited to, revenue from the state and federal governments) , cash receipts, and other moneys to be received by the Local Agency for the general fund of the Local Agency attributable to Fiscal Year 1997-1998, all of which will be legally available to pay principal of and interest on the Note. 13 ~~/;? ---.--.---.-....-.... __~,..._.,..,__,___,..___ .'0 .._.~...,._.__......__.._ (G) The Local Agency (i) has not defaulted within the past twenty (20) years, and is not currently in default, on any debt obligation and (ii) , to the best knowledge of the Local Agency, has never defaulted on any debt obligation. (H) The Local Agency's most recent audited financial statements present fairly the financial condition of the Local Agency as of the date thereof and the results of operation for the period covered thereby. Except as has been disclosed to the Financial Advisor and the underwriter, the Credit Provider, if any, and the Reserve Credit Provider, if any, there has been no change in the financial condition of the Local Agency since the date of such audited financial statements that will in the reasonable opinion of the Local Agency materially impair its ability to perform its obligations under this Resolution and the Note. The Local Agency agrees to furnish to the Authority, the Financial Advisor, the underwriter, the Trustee, the Credit Provider, if any, and the Reserve Credit Provider, if any, promptly, from time to time, such information regarding the operations, financial condition and property of the Local Agency as such party may reasonably request. (I) There is no action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, arbitrator, governmental or other board, body or official, pending or, to the best knowledge of the Local Agency, threatened against or affecting the Local Agency questioning the validity of any proceeding taken or to be taken by the Local Agency in connection with the Note, the Purchase Agreement, the Indenture, the Credit Agreement, if any, the Reserve Credit Agreement, if any, or this Resolution, or seeking to prohibit, restrain or enjoin the execution, delivery or performance by the Local Agency of any of the foregoing, or wherein an unfavorable decision, ruling or finding would have a materially adverse effect on the Local Agency's financial condition or results of operations or on the ability of the Local Agency to conduct its activities as presently conducted or as proposed or contemplated to be conducted, or would materially adversely affect the validity or enforceability of, or the authority or ability of the Local Agency to perform its obligations under, the Note, the Purchase Agreement, the Indenture, the Credit Agreement, if any, the Reserve Credit Agreement, if any, or this Resolution. (J) Upon issuance of the Note and execution of the Purchase Contract, this Resolution, the Purchase Contract and the Note will constitute legal, valid and binding agreements of the Local Agency, enforceable in accordance with their respective terms, except as such enforceability may be limited by bankruptcy or other laws affecting creditors' rights generally, the application of equitable principles if equitable remedies are sought, the exercise of jUdicial discretion in appropriate cases 14 J54 ~ Ý --_._--_._--~---_._.-.-- -----.....-.-- --.-.-.- U_.'_"'_ --_._.,,----_.__._~_.~._.~---_. ._---~--~. and the limitations on legal remedies against local agencies, as applicable, in the state of California. (K) The Local Agency and its appropriate officials have duly taken, or will take, all proceedings necessary to be taken by them, if any, for the levy, receipt, collection and enforcement of the Pledged Revenues in accordance with law for carrying out the provisions of this Resolution and the Note. (L) The Local Agency shall not incur any indebtedness secured by a pledge of its Pledged Revenues unless such pledge is subordinate in all respects to the pledge of Pledged Revenues hereunder. (M) So long as the Credit Provider, if any, is not in payment default under the Credit Instrument or the Reserve Credit provider, if any, is not in default under the corresponding Reserve Credit Agreement, the Local Agency hereby agrees to pay its pro rata share of all Predefault Obligations and all Reimbursement Obligations attributable to the Local Agency in accordance with provisions of the Credit Agreement, if any, the Reserve Credit Agreement, if any, and/or the Indenture, as applicable. Prior to the Maturity Date, moneys in the Local Agency's Payment Account and/or Payment Subaccount shall not be used to make such payments. The Local Agency shall pay such amounts promptly upon receipt of notice from the Credit Provider or from the Reserve Credit Provider, if applicable, that such amounts are due to it. (N) So long as any Bonds issued in connection with the Notes are Outstanding, or any Predefault Obligation or Reimbursement Obligation is outstanding, the Local Agency will not create or suffer to be created any pledge of or lien on the Note other than the pledge and lien of the Indenture. section 12. Tax Covenants. (A) The Local Agency shall not take any action or fail to take any action if such action or failure to take such action would adversely affect the exclusion from gross income of the interest payable on the Note or Bonds under section 103 of the Internal Revenue Code of 1986 (the "Code"). without limiting the generality of the foregoing, the Local Agency shall not make any use of the proceeds of the Note or Bonds or any other funds of the Local Agency which would cause the Note or Bonds to be an "arbitrage bond" within the meaning of section 148 of the Code, a "private activity bond" within the meaning of section 141(a) of the Code, or an obligation the interest on which is subject to federal income taxation because it is "federally guaranteed" as provided in section 149(b) of the Code. The Local Agency, with respect to the proceeds of the Note, will comply with all requirements of such sections of the Code and all regulations of the United States Department of the Treasury issued or applicable thereunder to the 15 . ~ /5/1 '1.-/ --...-.-- --......- ...._'.' ..~-_..---._-,_._----, extent that such requirements are, at the time, applicable and in effect. (B) The Local Agency hereby (i) represents that the aggregate face amount of all tax-exempt obligations (including any tax-exempt leases, but excluding private activity bonds), issued and to be issued by the Local Agency during calendar year 1997, including the Note, is not reasonably expected to exceed $5,000,000; or (ii) covenants that the Local Agency will take all legally permissible steps necessary to ensure that all of the gross proceeds of the Note will be expended no later than the day that is six months after the date of issuance of the Note so as to satisfy the requirements of section 148(f) (4) (B) of the Code. (C) Notwithstanding any other provision of this Resolution to the contrary, upon the Local Agency's failure to observe, or refusal to comply with, the covenants contained in this section 12, no one other than the holders or former holders of the Note, the owners of the Bond, the Credit Provider, if any, the Reserve Credit Provider, if any, or the Trustee on their behalf shall be entitled to exercise any right or remedy under this Resolution on the basis of the Local Agency's failure to observe, or refusal to comply with, such covenants. (D) The covenants contained in this section 12 shall survive the payment of the Note. section 13. Events of Default and Remedies. If any of the following events occurs, it is hereby defined as and declared to be and to constitute an "Event of Default": (A) Failure by the Local Agency to make or cause to be made the transfers and deposits to the Payment Account, or any other payment required to be paid hereunder, including payment of principal and interest on the Note, on or before the date on which such transfer, deposit or other payment is due and payable; (B) Failure by the Local Agency to observe and perform any covenant, condition or agreement on its part to be observed or performed under this Resolution, for a period of fifteen (15) days after written notice, specifying such failure and requesting that it be remedied, is given to the Local Agency by the Trustee, the Credit Provider, if applicable, or the Reserve Credit Provider, if applicable, unless the Trustee and the Credit Provider or the Reserve Credit Provider, if applicable, shall all agree in writing to an extension of such time prior to its expiration; (C) Any warranty, representation or other statement by or on behalf of the Local Agency contained in this Resolution or the Purchase Agreement (including the pricing Confirmation) or in 16 JM:/þ -.--.--- ..-- ,.. ----~-".,-~."--- any requisition or any financial report delivered by the Local Agency or in any instrument furnished in compliance with or in reference to this Resolution or the Purchase Agreement or in connection with the Note, is false or misleading in any material respect; (D) A petition is filed against the Local Agency under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect and is not dismissed within 30 days after such filing, but the Trustee shall have the right to intervene in the proceedings prior to the expiration of such thirty (30) days to protect its and the Bond Owners' (or Noteholders') interests; (E) The Local Agency files a petition in voluntary bankruptcy or seeking relief under any provision of any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, or consents to the filing of any petition against it under such law; or (F) The Local Agency admits insolvency or bankruptcy or is generally not paying its debts as such debts become due, or becomes insol vent or bankrupt or makes an assignment for the benefit of creditors, or a custodian (including without limitation a receiver, liquidator or trustee) of the Local Agency or any of its property is appointed by court order or takes possession thereof and such order remains in effect or such possession continues for more than 30 days, but the Trustee shall have the right to intervene in the proceedings prior to the expiration of such thirty (30) days to protect its and the Bond Owners' or Noteholders' interests. Whenever any Event of Default referred to in this section 13 shall have happened and be continuing, the Trustee, as holder of the Note, shall, in addition to any other remedies provided herein or by law or under the Indenture, if applicable, have the right, at its option without any further demand or notice, to take one or any combination of the following remedial steps: (1) without declaring the Note to be immediately due and payable, require the Local Agency to pay to the Trustee, as holder of the Note, an amount equal to the principal of the Note and interest thereon to maturity, plus all other amounts due hereunder, and upon notice to the Local Agency the same shall become immediately due and payable by the Local Agency without further notice or demand; and (2) Take whatever other action at law or in equity (except for acceleration of payment on the Note) which may appear necessary or desirable to collect the amounts then due and 17 /M"/? - ----~~--------_._-~-------~-- thereafter to become due hereunder and under the Note or to enforce any other of its rights hereunder. Notwithstanding the foregoing, if the Local Agency's Note is secured in whole or in part by a Credit Instrument (other than the Reserve Fund) or if the Credit Provider is subrogated to rights under the Local Agency's Note, as long as the Credit Provider has not failed to comply with its payment obligations under the Credit Instrument, the Credit Provider shall have the right to direct the remedies upon any Event of Default hereunder, and, not withstanding the foregoing, if a Reserve Credit Instrument is applicable, as long as the Reserve Credit Provider has not failed to comply with its payment obligations under the Reserve Credit Agreement, the Reserve Credit Provider shall have the right (prior to the Credit Provider) to direct the remedies upon any Event of Default hereunder, in each case so long as such action will not materially adversely affect the rights of any Bond Owner, and the Credit Provider's and Reserve Credit Provider's (if any) prior consent shall be required to any remedial action proposed to be taken by the Trustee hereunder. If the Credit Provider is not reimbursed for any drawing, payment or claim, as applicable, used to pay principal of and interest on the Note due to a default in payment on the Note by the Local Agency, or if any principal of or interest on the Note remains unpaid after the Maturity Date, the Note shall be a Defaulted Note, the unpaid portion (including the interest component, if applicable) thereof or the portion (including the interest component, if applicable) to which a Credit Instrument applies for which reimbursement on a draw, payment or claim has not been made shall be deemed outstanding and shall bear interest at the Default Rate until the Local Agency's obligation on the Defaulted Note is paid in full or payment is duly provided for, all subject to section 8 hereof. If the Credit Instrument is the Reserve Fund and the Reserve Bonds are secured by the Reserve Credit Instrument and all principal of and interest on the Note is not paid in full by the Reserve Principal Payment Date, the Defaulted Note shall become a Defaulted Reserve Note and the unpaid portion (including the interest component, if applicable) thereof (or the portion thereof with respect to which the Reserve Fund applies for which reimbursement on a Drawing has not been fully made) shall be deemed outstanding and shall bear interest at the Default Rate until the Local Agency's obligation on the Defaulted Reserve Note is paid in full or payment is duly provided for, all subj ect to section 8 hereof. section 14. Trustee. The Local Agency hereby directs and authorizes the payment by the Trustee of the interest on and principal of the Note when such become due and payable, from amounts received by the Trustee from the Local Agency in the manner 18 /3/l~/Y ... ...... ...._~ .,___.._...~..~_.__._____. n_.._...___ ~_. ...-..-.....--..-....-..-. set forth herein. The Local Agency hereby covenants to deposit funds in such account or fund, as applicable, at the time and in the amount specified herein to provide sufficient moneys to pay the principal of and interest on the Note on the Note Payment Deposit Date. Payment of the Note shall be in accordance with the terms of the Note and this Resolution. section 15. Sale of Note. The Note shall be sold to the Authority, in accordance with the terms of the Purchase Agreement, hereinbefore approved, and issued payable to the Trustee, as assignee of the Authority. section 16. Intentionally Left Blank. This section has been included to preserve the sequence of section numbers for cross-referencing purposes. section 17. Approval of Actions. The aforementioned Authorized Representatives of the Local Agency are hereby authorized and directed to execute the Note and cause the Trustee to accept delivery of the Note, pursuant to the terms and conditions of the Purchase Agreement and the Indenture. All actions heretofore taken by the officers and agents of the Local Agency or this Legislative Body with respect to the sale and issuance of the Note and participation in the Program are hereby approved, confirmed and ratified and the Authorized Representatives and agents of the Local Agency are hereby authorized and directed, for and in the name and on behalf of the Local Agency, to do any and all things and take any and all actions and execute any and all certificates, agreements and other documents which they, or any of them, may deem necessary or advisable in order to consummate the lawful issuance and delivery of the Note in accordance with, and related transactions contemplated by, this Resolution. The Authorized Representatives of the Local Agency referred to above in section 4 hereof are hereby designated as "Authorized Local Agency Representatives" under the Indenture. In the event that the Note or a portion thereof is secured by a Credit Instrument, anyone of the Authorized Representatives of the Local Agency is hereby authorized and directed to provide the Credit Provider and, if applicable, the Reserve Credit Provider, with any and all information relating to the Local Agency as such Credit Provider or Reserve Credit Provider may reasonably request. section 18. Proceedings Constitute Contract. The provisions of the Note and of this Resolution shall constitute a contract between the Local Agency and the registered owner of the Note, and such provisions shall be enforceable by mandamus or any other appropriate suit, action or proceeding at law or in equity in any court of competent jurisdiction, and shall be irrepealable. The Credit Provider, if any, and the Reserve Credit Provider, if 19 /5/J~7 ___.......__...._.. ....,.,__. ...m.'_" " .,' ...__.-__...._____._.....___..__..._____._ any, are third party beneficiaries of the provisions of this Resolution and the Note. section 19. Limited Liability. Notwithstanding anything to the contrary contained herein or in the Note or in any other document mentioned herein or related to the Note or to any Series of Bonds to which the Note may be assigned, the Local Agency shall not have any liability hereunder or by reason hereof or in connection with the transactions contemplated hereby except to the extent payable from moneys available therefor as set forth in section 8 hereof. section 20. Amendments. At any time or from time to time, the Local Agency may adopt one or more Supplemental Resolutions with the written consents of the Authority, the Credit Provider, if any, and the Reserve Credit Provider, if any, but without the necessity for consent of the owner of the Note or of the Bonds issued in connection with the Note for anyone or more of the following purposes: (A) to add to the covenants and agreements of the Local Agency in this Resolution, other covenants and agreements to be observed by the Local Agency which are not contrary to or inconsistent with this Resolution as theretofore in effect; (B) to add to the limitations and restrictions in this Resolution, other limitations and restrictions to be observed by the Local Agency which are not contrary to or inconsistent with this Resolution as theretofore in effect; (C) to confirm, as further assurance, any pledge under, and the subjection to any lien or pledge created or to be created by, this Resolution, of any monies, securities or funds, or to establish any additional funds or accounts to be held under this Resolution; (D) to cure any ambiguity, supply any omission, or cure or correct any defect or inconsistent provision in this Resolution; or (E) to amend or supplement this Resolution in any other respect; provided, however, that any such Supplemental Resolution does not adversely affect the interests of the owners of the Note or of the Bonds issued in connection with the Notes. Any modifications or amendment of this Resolution and of the rights and obligations of the Local Agency and of the owner of the Note or of the Bonds issued in connection with the Note may be made by a Supplemental Resolution, with the written consents of the Authority, the Credit Provider, if any, and the Reserve Credit 20 /ß:1 '...2iJ ,""._---,-,._---.,.'. --..--.-.-------.. Provider, if any, and with the written consent of the owners of at least a majority in principal amount of the Note and of the Bonds issued in connection with the Note outstanding at the time such consent is given; provided, however, that if such modification or amendment will, by its terms, not take effect so long as the Note or any Bonds issued in connection with the Note remain outstanding, the consent of the owners of such Note or of such Bonds shall not be required. No such modification or amendment shall permit a change in the maturity of the Note or a reduction of the principal amount thereof or an extension of the time of any payment thereon or a reduction of the rate of interest thereon, or a change in the date or amounts of the pledge set forth in this Resolution, without the consent of the owners of such Note or the owners of all the Bonds issued in connection with the Note, or shall reduce the percentage of the Note or Bonds the consent of the owners of which is required to effect any such modification or amendment, or shall change or modify any of the rights or obligations of the Trustee without its written assent thereto. section 21. Severability. In the event any provision of this Resolution shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. section 22. Appointment of Bond Counsel. The law firm of Orrick, Herrington & sutcliffe, Los Angeles, California is hereby appointed as Bond Counsel for the Program. The Local Agency acknowledges that Bond Counsel regularly performs legal services for many private and public entities in connection with a wide variety of matters, and that Bond Counsel has represented, is representing or may in the future represent other public entities, underwriters, trustees, rating agencies, insurers, credit enhancement providers, lenders, financial and other consultants who may have a role or interest in the proposed financing or that may be involved with or adverse to Local Agency in this or some other matter. Given the special, limited role of Bond Counsel described above the Local Agency acknowledges that no conflict of interest exists or would exist, waives any conflict of interest that might appear to exist, and consents to any and all such relationships. Section 23. Appointment of Financial Advisor and Underwriter. Sutro & Co. Incorporated, Los Angeles, California is hereby appointed as financial advisor for the Program. Morgan Stanley & Co. Inc., together with such co-underwriters, if any, identified in the Purchase Contract, is hereby appointed as underwriter for the Program. section 24. Effective Date. This Resolution shall take effect from and after its date of adoption. section 25. Resolution Parameters. 21 /~,-~/ -- -.- ._."-,-.._--- - --~.--.----"~------"-.._.-"--.-.---.-.'--~.--. (A) Name of Local Agency: CITY OF CHULA VISTA (B) Maximum Amount of Borrowing: $10,100,000 (C) Authorized Representatives: 1- Robert Powell, Director of Finance 2. Cheryl Fruchter, Assistant Director of Finance Presented by Approved as to form by Robert Powell, Director of ey Finance C:\rs\tran 22 /9~;¿ ~-,._-"._--., ..-.----.--... . .*.__._.._.~_..m__. EXHIBIT A [NAME OF LOCAL AGENCY] 1997-1998 TAX AND REVENUE ANTICIPATION NOTE, [SERIES -1:1 Date of Interest Rate Maturity Date Orie:inal Issue REGISTERED OWNER: PRINCIPAL AMOUNT: DOLLARS FOR VALUE RECEIVED, the Local Agency designated above (the "Local Agency"), acknowledges itself indebted to and promises to pay to the registered owner identified above, or registered assigns, on the maturity date set forth above, the principal sum specified above in lawful money of the United States of America, and to pay interest thereon [on , 1997 and] at maturity at the rate of interest specified above (the "Note Rate"). Principal of and interest on this Note are payable in such coin or currency of the United States as at the time of payment is legal tender for payment of private and public debts. Principal and interest at maturity shall be paid upon surrender hereof at the principal corporate trust office of U.S. Trust Company of California, N.A. in Los Angeles, California, or its successor in trust (the "Trustee"). Interest shall be calculated on the basis of a 360-day year, consisting of twelve 30-day months. Both the principal of and interest on this Note shall be payable only to the registered owner hereof as the same shall fall due; provided, however, no interest shall be payable for any period after maturity during which the holder hereof fails to properly present this Note for payment. If the Local Agency fails to pay this Note when due or the Credit Provider (as defined in the Resolution hereinafter described and in that certain Indenture of Trust, dated as of 1, 1997 (the "Indenture"), by and between the California Statewide Communities Development Authority and U.S. Trust Company of California, N.A., as trustee), if any, is not reimbursed in full for the amount drawn on or paid pursuant to the Credit Instrument (as defined in the Resolution and the Indenture) to pay all or a portion (including the interest component, if applicable) of this Note on the date of such payment, this Note shall become a Defaulted Note (as. defined in the Resolution and the Indenture and with the consequences set forth in the Resolution and the Indenture, including, without limitation, that this Note as a Defaulted Note (and any related reimbursement obligation with respect to a credit instrument) shall bear interest at the Default Rate, as defined in the Indenture). It is hereby certified, recited and declared that this Note represents the authorized issue of the Note in the aggregate principal amount authorized, executed and delivered pursuant to and by authority of certain resolutions of the Local Agency duly passed and adopted heretofore, under and by authority of Article 7.6 (commencing with Section 53850) of Chapter 4, Part 1, Division 2, Title 5 of the California Government Code (collectively, the "Resolution"), to all of the provisions and limitations of which the owner of this Note, by acceptance hereof, assents and agrees. The principal of the Note, together with the interest thereon, shall be payable from taxes, income, revenue, cash receipts and other moneys which are received by the Local Agency for the general fund of the Local Agency and are attributable to Fiscal Year 1997-1998 and which are available for payment thereof. As security for the payment of the principal of and interest on the Note, the Local Agency has pledged the first amounts of unrestricted revenues of the Local Agency received on the last day of _ and _ (and any amounts received thereafter attributable to Fiscal Year 1997-1998) until the amount on deposit in the Payment Account (as defined in the Resolution), together with available amounts, if any, on deposit in the Payment Subaccount (as defined in the Resolution) in each such month, is equal to the corresponding percentages of principal of and interest due on the Note as set forth in the Pricing Confirmation (as defined in the Resolution) (such pledged amounts being hereinafter called the "Pledged Revenues "), and the principal of the Note and the interest thereon shall constitute a first lien and charge thereon and shall be payable from the Pledged Revenues, and to the extent not so paid shall be paid from any other moneys of the Local Agency lawfully available therefor as set forth in the :¡ If more than one Series of Bonds is issued under the Program in FiSC~ 1997-1998 and if the Note is pooled with notes issued by other Issuers (as defIned in the Resolution). ~ /9""" c:2 3 LAl-160282.2 A-I EXISTING CSCDA MEMBER RESOLUTION __..m__ --,.._~..- -"..,......... -''"'''-.----.--, Resolution. The full faith and credit of the Local Agency is not pledged to the payment of the principal of or interest on this Note. The Local Agency and the Trustee may deem and treat the registered owner hereof as the absolute owner hereof for the purpose of receiving payment of or on account of principal hereof and interest due hereon and for all other purposes, and the Local Agency and the Trustee shall not be affected by any notice to the contrary. It is hereby certified that all of the conditions, things and acts required to exist, to have happened and to have been performed precedent to and in the issuance of this Note do exist, have happened and have been performed in due time, form and manner as required by the Constitution and statutes of the State of California and that the amount of this Note, together with all other indebtedness of the Local Agency, does not exceed any limit prescribed by the Constitution or statutes of the State of California. IN WITNESS WHEREOF, the Legislative Body of the Local Agency has caused this· Note to be executed by the manual or facsimile signature of a duly Authorized Representative of the Local Agency and countersigned by the manual or facsimile signature of the Secretary or Clerk of the Legislative Body as of the date of authentication set forth below. [NAME OF LOCAL AGENCY] By Title: Countersigned i r By Title: /ß/I--ol'/ LAl-160282.2 A-2 EXISTING CSCDA MEMBER RESOLUTION - --"._,."~-,.. ---~-- ,..,.,.._~...,.__.. .......-..---."...........- ~. PURCHASE AGREEMENT THIS PURCHASE AGREEMENT (the "Purchase Agreement"), dated as of the purchase date (the "Purchase Date") specified in Exhibit A attached hereto and made a part hereof, entered into by and between the signatory local agency designated in Exhibit A (the "Local Agency") and the California Statewide Communities Development Authority (the" Authority"), for the sale and delivery of the principal amount specified in Exhibit A of the Local Agency's 1997-1997 Tax and Revenue Anticipation Note (the "Note") to be issued in conjunction with the notes of other Issuers (as hereinafter defined) participating in the Program (as hereinafter defined), as determined in the Pricing Confirmation (as hereinafter defined), pooled with notes of other Issuers and assigned to secure a series (the "Series") of bonds (the "Bonds") designated in Exhibit A; WITNESSETH: WHEREAS, local agencies are authorized by Sections 53850 to 53858, both inclusive, of the Government Code of the State of California (the" Act") (being Article 7 .6, Chapter 4, Part I, Division 2, Title 5 of the Government Code) to borrow money by the issuance of temporary notes; WHEREAS, the legislative body of the Local Agency (the "Legislative Body") has heretofore adopted its resolution finding that the Local Agency needs to borrow funds in its fiscal year ending June 30, 1997 ("Fiscal Year 1997-1998") in the principal amount set forth in Exhibit A and that it is necessary that said sum be borrowed at this time by the issuance of a note therefor in anticipation of the receipt of taxes, income, revenue, cash receipts and other moneys to be received by the Local Agency during or attributable to Fiscal Year 1997-1998; WHEREAS, on the resolution date set forth in Exhibit A, the Local Agency adopted (as specified in Exhibit A) a resolution or resolutions (collectively or singularly, as applicable, the "Resolution") authorizing the issuance and sale of the Note in the name and on behalf of the Local Agency; WHEREAS, the Local Agency has determined that it is in the best interests of the Local Agency to participate in the California Communities Cash Flow Financing Program (the "Program"), whereby participating local agencies (the "Issuers") will simultaneously issue tax and revenue anticipation promissory notes for purchase by the Authority; WHEREAS, under the Program, the Authority will form one or more pools of notes (the "Pooled Notes") and assign each note to a particular pool (the "Pool") and sell a Series of Bonds secured by each Pool pursuant to an indenture, dated as of July 1, 1997 (the "Indenture"), by and between the Authority and U.S. Trust Company of California, N.A. (the "Trustee"), and sell each such Series to Morgan Stanley & Co. Incorporated, as representative of the underwriters of the Program (collectively, the "Underwriter"); WHEREAS, if so indicated in Exhibit A, the payment by the Local Agency of its Note will be secured in whole or in part Gointly, but not severally, with notes of the other participating Issuers assigned to the same Series of Bonds) by a letter of credit, policy of insurance, proceeds received from a separate bond issue issued by the Authority for such purpose (the "Reserve Fund") or other credit instrument (collectively, the "Credit Instrument") to be issued by the entity or entities designated in Exhibit A as the credit provider (the "Credit Provider"); °1997, Orrick, Herrington & Sutcliffe. All rights reserved. //f--~ LAl-I60535.1 "~,..- ..~--- . ~.__._'--_._._- -- ..-. --- WHEREAS, such Credit Instrument may be issued pursuant to a reimbursement - agreement, commitment letter, indenture or other agreement (the "Credit Agreement") as identified in Exhibit A; WHEREAS, in order to participate in the Program, the Local Agency has agreed to be responsible for its share of the fees and expenses of the Trustee, and, if applicable, the Credit Provider and.the costs of issuing the Bonds, and the costs, if applicable, of issuing the Credit Instrument, which anticipated fees, expenses and costs of issuance will be deducted from the purchase price set forth in Exhibit A and which unanticipated fees, expenses and costs of issuance will be billed to the Local Agency as the same may arise; WHEREAS, the costs of issuance which will be deducted from the purchase price set forth in Exhibit A for the Local Agency shall not exceed one percent (1 %) of the principal amount of each Note; and WHEREAS, pursuant to the Program, the Authority is submitting this offer to purchase the Note pursuant to this Purchase Agreement; NOW, THEREFORE, for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: Section 1. Obli!!ation to Purchase. Upon the terms and conditions and in reliance upon the representations, warranties and agreements set forth herein, the Authority shall purchase from the Local Agency, and the Local Agency shall sell to the Authority, the Note, as described herein and in the Resolution. Section 2. Purchase Price. The purchase price of the Note shall be the purchase price set forth in the pricing confirmation attached hereto as Exhibit A (the "Pricing Confirmation"). The Note shall bear interest at an interest rate per annum set forth in the Pricing Confirmation, which is hereby agreed to by and between the Authority and the Local Agency by its duly authorized representative executing this Purchase Agreement on behalf of the Local Agency. Section 3. Adiustments to PrinciDaI Amount of Note and Purchase Price. The Authority and the Local Agency hereby agree that the principal amount of the Note purchased by the Authority and sold to the Authority by the Local Agency pursuant to this Purchase Agreement may be reduced, as determined by the Authority and each Local Agency, based upon the advice of Orrick, Herrington & Sutcliffe ("Bond Counsel "), in order that the proceeds produced from such sale of such Note will be an amount which will not be subject to either (i) yield restriction (in order for interest to be excluded from gross income under Section 103 of the Internal Revenue Code of 1986, as amended (the "Code")) or (ii) a rebate requirement (under Section 148 of the Code). The Authority and the Local Agency hereby further agree that the purchase price of the Note shall be reduced as a result of any reduction of the principal amount of the Note required by this section. Section 4. Deliyerv of and Pavment for the Note. The delivery of the Note (the "Closing") shall take place at 8:00 a.m., California time, on the closing date set forth in the Pricing Confirmation or at such other time or date as may be mutually agreeable to the Local Agency, the Authority and the Underwriter, at the Los Angeles office of Orrick, Herrington & Sutcliffe or such other place as the Local Agency, the Authority and the Underwriter shall mutually agree. At the Closing, the Local Agency shall cause the Note to be delivered to the Authority, duly executed and authenticated, together with the other documents hereinafter mentioned, and the proceeds of the purchase price of the Note set forth in the Pricing Confirmation shall be deposited in an amount indicated in the Pricing µ ~e2? LA1-l60S3S.1 2 .~.....~.._.._.. .H__~._ Confirmation as the Deposit to Proceeds Fund which shall be held by the Trustee for the Local Agency and the remainder in the Costs of Issuance Fund held thereunder. If at any time prior to 90 days after the Closing Date, any event occurs as a result of which information relating to the Local Agency included in the official statement of the Authority relating to the Series of Bonds to which the Note is assigned (the "Official Statement") contains an untrue statement of a material fact or omits to state any material fact necessary to make the statements therein in light of the circumstances under which they were made, not misleading, the Local Agency shall promptly notify the Authority and the Underwriter thereof, and if, in the opinion of the Authority or the Underwriter, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the Local Agency shall cooperate with the Authority and the Underwriter in the preparation of an amendment or supplement to the Official Statement in a form and in a manner approved by the Authority and the Underwriter, and all reasonable expenses incurred thereby shall be paid by the Local Agency. Section 5. The Note. The Note shall be issued in substantially the form set forth in the Resolution, without coupons in the full principal amount set forth in Exhibit A. Section 6. Representations and Warranties of the Local Al!ency. The Local Agency represents and warrants to the Authority and the Underwriter that: (a) All representations and warranties set forth in the Resolution are true and correct on the date hereof and are made for the benefit of the Authority and the Underwriter as if set forth herein. (b) The information relating to the Local Agency included in the Official Statement does not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein in light of the circumstance under which they were made not misleading. (c) A copy of the Resolution has been delivered to the Authority and the Underwriter, and the Resolution will not be amended or repealed without the consent of the Authority and the Underwriter, which consent will not be unreasonably withheld. (d) The Local Agency acknowledges that the Authority is authorized to execute the Indenture, to assign the Note to the Trustee under the Indenture and to issue the Series of Bonds pursuant to the Indenture. (e) The Local Agency shall provide the required Payment Account Deposit Certification (upon a request therefor) in accordance with Section 5.06 of the Indenture. (f) The Local Agency has not issued and will not issue any obligation or obligations, other than the Note, to finance the working capital deficit for which the Note is being issued. /M -;J? LAl-160S35.1 3 ... ... . .. ~'-"~-'--'-'-'--'--'-'-'"- Section 7. Conditions Precedent to the ClosiDl!. Conditions precedent to the Closing are as follows: (a) The execution and delivery of the Note consistent with the Resolution. (b) Delivery of a legal opinion addressed to the Local Agency (with a reliance letter addressed to the Authority and the Underwriter), dated the date of Closing, of Orrick, Herrington & Sutcliffe ("Bond Counsel ") with respect to the validity of the Note in form and substance acceptable to the Authority and the Underwriter. (c) Delivery of a legal opinion, dated the date of Closing, of counsel to the Local Agency, with respect to the due authorization, execution and delivery of the Note, in form and substance acceptable to Bond Counsel. (d) Approval by the Credit Provider of the credit of the Local Agency and inclusion of the Local Agency's Note in the assignment, together with notes of other Issuers, to a Series of Bonds, to secure the Series of Bonds, which approval in the event the Credit Instrument is the Reserve Fund shall be evidenced by the issuance of an "SP-I +" rating with respect to the applicable Series of Bonds by Standard & Poor's Ratings Group. (e) Delivery of each certificate, document, instrument and opinion required by the agreement between the Authority and the Underwriter for the sale by the Authority and purchase by the Underwriter of the Series of Bonds to which the Pooled Note is assigned. (f) Delivery of such other certificates, instruments or opinions as Bond Counsel may deem necessary or desirable to evidence the due authorization, execution and delivery of documents pertaining to this transaction and the legal, valid and binding nature thereof or as may be required by the Credit Agreement, as well as compliance of all parties with the terms and conditions thereof. Section 8. Events Permittin!! the Authoritv to Terminate. The Authority may terminate its obligation to purchase the Note at any time before the Closing if any of the following occurs: (a) Any legislative, executive or regulatory action (including the introduction of legislation) or any court decision which, in the judgment of the Authority, casts sufficient doubt on the legality of obligations such as the Note, and the tax-exempt status of interest on obligations such as the Bonds, so as to impair materially the marketability or to reduce materially the market price of such obligations; (b) Any action by the Securities and Exchange Commission or a court which would require registration of the Note, the Bonds or any instrument securing the Note or Bonds under the Securities Act of 1933, as amended, in connection with the public offering thereof, or qualification of the Resolution or the Indenture under the Trust Indenture Act of 1939, as amended; (c) Any restriction on trading in securities, or any banking moratorium, or the inception or escalation of any war or major military hostilities which, in the judgment of the Authority, substantially impairs the ability of the Underwriter to market the Bonds; or (d) The Underwriter terminates its obligation to purchase the Series of Bonds to which the Note is assigned pursuant to its agreement with the Authority for the purchase of such Series of Bonds. 6/1~.2~ LAl-160S35.1 4 ---,-_.._---- - ~~----_.- Neither the Underwriter nor the Authority shall be responsible for the payment of any ~ fees, costs or expenses of the issuance, offering and sale of the Local Agency's Note except the Underwriter shall be responsible for California Debt Advisory Commission fees and for its own internal costs. The fees, costs and expenses that are categorized in the "Costs of Issuance" definition in the Indenture shall be paid from the Costs of Issuance Fund. The Local Agency shall pay any additional costs attributable to it as set forth in the Resolution other than the fees, costs and expenses so payable from the applicable Costs of Issuance Fund. Section 9. Indemnification. To the extent permitted by law, the Local Agency agrees to indemnify and hold harmless the Authority and the Underwriter and each person, if any, who controls (within the meaning of Section 15 of the Securities Act of 1933, as amended, or of Section 20 of the Securities Act of 1934, as amended) the Authority or the Underwriter, and the officers, directors, agents and employees of the Authority and the Underwriter against any and all losses, claims, damages, liabilities and expenses arising out of any statement or information in the Preliminary Official Statement or in the Official Statement (other than statements or information regarding an Issuer other than the Local Agency) that is untrue or incorrect in any material respect or the omission or alleged omission therefrom of any statement or information (other than statements or information regarding an Issuer other than the Local Agency) that should be stated therein or that is necessary to make the statements and information therein not misleading in any material respect. Section 10. Credit Ål!reement. The Local Agency shall comply with all lawful and proper requests of the Authority in order to enable the Authority to comply with all of the terms, conditions and covenants binding upon it under the Credit Agreement. Section 11. Notices. Any notices to be given to the Underwriter under the Purchase Agreement shall be given in writing to Morgan Stanley & Co. Incorporated, Attention: 555 California Street, Suite 2200, San Francisco, CA 94104. Any notices to be given to the Authority under the Purchase Agreement shall be given in writing to the Authority, liDO "K" Street, Suite 101, Sacramento, CA 95814, Attention: Secretary. Any notices to be given to the Local Agency shall be given in writing to the address specified in Exhibit A. Section 12. No Assi!!Dment. The Purchase Agreement has been made by the Local Agency and the Authority, and no person other than the Local Agency and the Authority or their successors or assigns and the Underwriter shall acquire or have any right under or by virtue of the Purchase Agreement. All of the representations, warranties and agreements contained in the Purchase Agreement shall survive the deliyery of and payment by the Authority for the Note and any termination of the Purchase Agreement. Section 13. Applicable Law. The Purchase Agreement shall be interpreted, governed and enforced in accordance with the laws of the State of California. Section 14. Effectiveness. The Purchase Agreement shall become effective upon the execution hereof by the Authority and execution of the Pricing Confirmation by the Local Agency, and the Purchase Agreement, including the Pricing Confirmation, shall be valid, binding and enforceable from and after the time of such effectiveness. Section 15. Severability. In the event any provision of the Purchase Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. /~ ;;2; LA.1-160535.1 5 ---.-_----_._-.- _-"0- ,___...___.____._._"..._"_..._.___._..,_,..~..__ --- Section 16. Headinl!.s. Any headings preceding the text of several sections hereof shall be solely for convenience of reference and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction or effect. Section 17. Execution in Counteruarts. This Purchase Agreement may be executed and entered into in several counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument. IN WITNESS WHEREOF, the parties hereto have caused this Purchase Agreement to be executed by their duly authorized representatives as of the Purchase Date set forth in Exhibit A attached hereto and incorporated herein. CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY By Member of the Commission of the Authority ðd~¿J LAl-160S3S.1 6 --.-.-+-...---....---- --'-_._..,.---_..~....__._---_.__..----~--_. EXHIBIT A Pricing Confirmation Supplement Local Agency: CITY OF CHULA VISTA Pricing InformaJion Principal Amount of Note: $ Interest Rate on Note: - % Re-Offering Yield: - % Purchase Price - % Default Rate: - % Purchase Price: $ Less: Cost of Issuance: - % ( ) Credit Enhancement: - % ( ) Deposit to Note Proceeds Account: $ ImpoT1anJ Dates Resolution Date of Local Agency: Purchase Date: Closing Date: Maturity Date: Interest Payment Date(s): Note Payment Deposit Date: First Pledge Month Ending: Pledge Amount: $ Pledge Percentage: - % Second Pledge Month Ending: $ Pledge Amount: _% Pledge Percentage: Investment Agreement InformaJion OlC Provider Long Term Ratings (S&P/Moody's) Short Term Credit Ratings (S&P/Moody's) Interest Rate on Ol C - % ~-;J/ l.A1-160S3S.1 A-I ~-~-_.~-"--'-"'- -- -+._..~_....._._---_.__.,._- ._.~...._.._---,_.,.,.,._-- .-..-,-- · By initialing the box at the end of this paragraph, the undersigned Local Agency certifies that, in connection with the issuance of the Note under the Resolution and after reasonable inquiry, it is the reasonable expectation of the Local Agency that the aggregate amount of all tax-exempt obligations (excluding private activity bonds) issued or to be issued by the Local Agency during the 1997 calendar year, including the Note, all other notes and bonds, and all tax-exempt leases, executed or delivered during the 1997 calendar year will not exceed $5,000,000 (See Section 3.8 of the Certificate of the Local Agency if the Local Agency is unable to make this certification) . . . . . D Investment Alternative - Initial the appropriate box relating to the investment of proceeds received from the issuance and delivery of the Local Agency's Note: Initial One Box Yes, the undersigned directs the Trustee to invest the proceeds received from the issuance and deliyery of the Local Agency's Note in the Guaranteed Investment Contract described on page A-I. (Do not wire the proceeds as previously directed in Section 4.7 of the Certificate of the Yes D Local Agency.) No, do not invest the proceeds received from the issuance and delivery of the Local Agency's Note in the Guaranteed Investment contract, wire the proceeds as directed in D \ Section 4.7 of the Certificate of the Local Agency. No IN WITNESS WHEREOF, the Purchase Agreement, including this Pricing Confirmation, is agreed and accepted to on the Purchase Date set forth above. CITY OF CHULA VISTA By Authorized Representative *' Please initial the box only if applicable to the Local Agency. /Jd:Y.2 LAl-160S3S.1 A-2 --....- ._._m._ ....___._ _..'__.._m.____m..~_'.~.._._·__.__·,·___ RESOLUTION NO. /<J'ZJ/f RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DIRECTING THE CITY MANAGER TO INCLUDE IN THE FISCAL YEAR 1997/98 PROPOSED BUDGET APPROPRIATIONS OF $409,800 FOR TAX AND REVENUE ANTICIPATION NOTE PROJECTED INTEREST AND ISSUANCE COSTS AND ESTIMATED INTEREST REVENUES OF $409,800 FROM INVESTMENT OF THE NOTE PROCEEDS WHEREAS, very preliminary cash flow projections show that the General Fund could incur a maximum temporary cash shortfall of approximately $7.2 million in early December based on a balanced budget of $61.4 million; and WHEREAS, under current federal tax laws, the City may borrow on a tax exempt basis an amount not to exceed the projected maximum deficit plus a reasonable working capital reserve, which is calculated at $2.9 million based on a prescribed formula; and WHEREAS, this formula results in a maximum borrowing level of $10,090,903; and WHEREAS, given these projections, the cost of the Tax and Revenue Anticipation Note (TRAN) would be $409,900 (interest of $386,800 and cost of issuance of $23,000); and WHEREAS, estimated revenue from investing the proceeds of the borrowing at the weighted average pool earning rate (5.5%) until needed is conservatively projected to be at least equal to the cost of borrowing, therefore, the net cost of the TRANS issue is estimated to be zero. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby direct the City Manager to include in the fiscal year 1997/98 proposed budget appropriations of $409,800 for tax and revenue anticipation note projected interest and issuance costs and estimated interest revenues of $409,800 from investment of the note proceeds. Presented by Approved as to form by Robert Powell, Director of City Y Finance C:\rs\tran.app /S-g-/ _"__.___ . M"_'_"'__'___'~_ ........_..._.__ COUNCIL AGENDA STATEMENT Item /&' Meeting Date 4/22/97 ITEM TITLE: Resolution / ólf f~cePting petitiQn for formation of a special assessment district on the 400 block of Oxford Street for the construction of street improvements between Fourth Avenue and Fifth Avenue (CIP # STL- 229). SUBMITTED BY: Director of Public Works ~ REVIEWED BY, City -- 0::¡ I>¡r~ (415"" Y..., Ya--".XJ The City Engineer has received sufficient ballots in favor of commencing a construction project for the missing street improvements on Oxford Street between Fourth A venue and Fifth A venue. The ballots were signed by a majority of the property owners along the ITontage of the 400 block of Oxford Street. These property owners are requesting that a special assessment district for the construction of improvements to Oxford Street be commenced. Upon acceptance by the Council, the ballots will be filed in the City Clerk's office. Approval of this resolution will permit staff to begin the assessment district proceedings related to the street improvements. RECOMMENDATION: That Council approve the resolution accepting the results of the ballots for formation of a special assessment district for the construction of street improvements on Oxford Street between Fourth Avenue and Fifth Avenue. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: This project (STL229 - Oxford Sidewalk Safety) is part of the overall sidewalk safety program, which provides for the construction of sidewalk facilities in the Montgomery area. As originally budgeted in the FY96/97 Capital Improvement Program (CIP # 0735-IO-STL-229), the City proposed to build asphalt concrete sidewalks on the north side of Oxford Street to provide a safe walkway to the children in the area. Funds for this project were obtained ITom the Transportation Development Act (TDA) through San Diego Association of Governments (SANDAG). However, since TDA funds will pay only for the sidewalk and not related items such as curb and gutter, additional City gas tax funding was included. As the design of the project progressed, it became apparent that to accommodate the sidewalk, grading of the south side of the street would also be necessary. To this effect, staff held a meeting with the area property owners on January 30, 1997. At this meeting, staff presented the idea of expanding the project to include the installation of concrete sidewalks on both sides of the street instead of sidewalk improvements on the north side only. This possibility could be accomplished 16--/ "-_..... ...-..---..---..--- ...... .--.---......-.. .._'__n._..._.... .._....._. Page 2, Item /G> Meeting Date 4/22/97 provided the property owners would participate in the formation of a special assessment district, whereby the difference in cost would be paid by all area property owners on both sides of the street. During the January 30,1997, meeting with the property owners, staff also discussed the assessment district procedures, the scope of the project, financing alternatives and answered questions that they had. Staff then prepared ballots and on February 24, 1997 mailed them out to the property owners. On March 25, 1997 the City Engineer received sufficient ballots in favor of forming a special assessment district (1911 Block Act) for the construction of improvements to Oxford Street between Fourth Avenue and Fifth Avenue. Sections 2804 (a)(3) and 5871 (a) of the Street and Highways Code require that such petitions be signed by owners of more than 60% of the area, unless otherwise approved, and be signed by owners of more than 60% of the front footage. The recently passed Proposition 218, the "Right To Vote On Taxes Act", requires a ballot to be approved by the majority of the property owners by financial obligation. The results of the ballots received showed that as of April 4, 1997, twenty-seven of the thirty-four affected property owners had returned the ballots with 25 property owners in support of the project. The property owners in favor represented $22,103 (69.38%) out of the $31,858 preliminary estimated share of the project cost the property owners would contribute. Four of these thirty-four property owners already have the street improvements in front of their property and they all voted in favor of forming the assessment district. Since their assessment is $0, their vote carries no weight. These properties may not be included within the final district boundaries if no additional work is required adjacent to their properties. Of those ballots in which the property owners did not vote in favor of the project, they either were opposed spending money on the street improvements or felt that it was totally the City's responsibility to improve the street. There are four dwellings on three separate parcels which at this time have septic systems and no sewer lateral. Therefore, staffhas included an optional cost item related to sewer lateral work which will be made available to these property owners. This work consists of connecting to the existing sewer main (which parallels the Oxford Street centerline) by constructing the missing sewer lateral from the centerline of the street to the property line. Staff has estimated the sewer lateral construction and connection costs at $5,800 for each property. These additional costs will be included as part of their assessment amount. The property owners signing the petition agreed to the following terms: A. That the cost of the improvements will be charged to the land outlined on Exhibit A which benefits from the project, including their land; /(;'-.2 ..-... .....- - .'_.." ..--. --...-.------...-------- Page 3, Item If¡¡ Meeting Date 4/22/97 B. That the cost of engineering, legal and other incidental expenses which will be paid for by the City, will be included in the project cost; C. That once the construction is completed and accepted by the City, each property owner may pay his assessment either in cash without interest or in installments with interest over a period of 10 years; D. That the estimated cost of the improvements is $365,000. The property owner's contribution to the construction of the project is estimated to be up to $35,000; E. That property with an assessed lien is subject to foreclosure in cases of delinquency and non-payment; F. That they consented to the formation of the Assessment District in accordance with Section 2804 of the Streets and Highway Code of the State of California and the requirements of Proposition 218 and waived any rights to protest against the formation of said assessment district; G. That they agreed to dedicate all required rights-of-way or easements necessary for the works of improvement, all dedications to be accomplished before the ordering of improvements. Improvements and Costs The improvements on Oxford Street extend ITom Fourth Avenue to Fifth Avenue including the work within those two intersections. The work would consist of grading, excavation, asphalt paving, pedestrian ramps, sidewalks, driveways together with appurtenances and appurtenant work to serve and to benefit properties located within the boundaries ofthe proposed assessment district. It is estimated that the following costs will be incurred for the improvement of Oxford Street: Recommended Property !&ill. Obligation of City Owner's Cost Construction ($94.00ILF) $361,858.00 $330,000.00 $ 31,858.00 Designllnspection $100,000.00 $100,000.00 $ 0.00 Assessment District Formation $ 20,000.00 $ 20,000.00 $ 0.00 Contingencies $ 15.000.00 $ 15.000.00 $ 0.00 Total $496,858.00 $465,000.00 $ 31,858.00 Staff recommends that the City pay all costs of design and inspection as well as the assessment district formation, estimated at $100,000 (direct costs), which is consistent with past practices and Council Policy 505-01 (attached). Staff recommends that construction costs of $31,858 be the l¿j;r3 -.,..._.._------~. Page 4, Item Ib Meeting Date 4/22/97 responsibility of the property owners, based upon this policy. This Assessment District (# 97-01) will be formed by the 1911 Block Act to obtain reimbursement for the improvement and other miscellaneous costs in accordance with Council policy. The 1911 Act is a financing mechanism which authorizes local agencies to impose assessments on benefiting properties to fund the construction of public improvements. To construct the project through assessment district financing, the CIP budget detail shows $141,500 from TDA funds and $358,500 from Gas Tax funds. Alternatively, the City could sell bonds in the amount of the construction costs. However, for a project of this size, it is not economically feasible to do so, consequently, the City typically advances funds for cost effectiveness. Based on the staff recommendation, the assessments for each parcel would range from a low of $470.00 to a high of $2,793.00, with the assessments averaging $1,100. The properties have not previously been considered for inclusion in the Block Act for the following reasons: 1. This area was part of the January 1, 1986 Montgomery Annexation from the County of San Diego and the City Council had committed that no assessment district would be formed for a period often years from the annexation date, unless there was a petition by 3/4 of the benefitting properties requesting the District; 2. Previously, there has been no requests for the street improvements to be completed by an assessment district. Staff recommends that this street improvement project be approved for staff to complete the assessment district proceedings this year and that the City participate in the fmancing by funding the design, inspection and project administration costs. Alternatively, the City could deny participation in the funding, and the property owners could pick up the non-construction costs of$IOO,OOO. A new petition and ballot would need to be executed by the property owners to proceed with this option. If the property owners were required to fund the non-construction costs, the assessments would increase ranging from $1,945 at the low end to $11,560 at the high end. The property owners will be allowed to finance the improvements over a ten year period with the interest charges included on their property tax bills. Based on the revised cost estimates, staff does not believe that a majority of the property owners would support formation of the district with this latter option. Future Actions 1. Staff will return to Council with the Resolution of Intention declaring the City's intent to from a district. 2. Although there is no statutory requirement to do so, staff will meet with all property owners again to discuss the project status, improvements and its financing. /&-( -- --"----------_......",-_._,-,-_._._+.--- Page 5, Item /b Meeting Date 4/22/97 Therefore, tonight's action by the City Council is not binding on the property owners in the event the bids come in higher than the estimated $365,000. After the bids are opened, the project comes back to the Council for award, the actions will include notice to the property owners of a public hearing with an opportunity to review their proposed charges. At that time, the property owners could request the Council to eliminate the district because of the higher than anticipated costs. After construction is complete, and the final costs are known, there will be another public hearing to review, levy or protest the actual assessments. All property owners within this proposed assessment district of 34 parcels have been sent a copy of tonight's City Council agenda statement and attachments. FISCAL IMP ACT: This project was originally approved in the FY96/97 budget as CIP project STL229 - Oxford Sidewalk Safety. The financing for this project (project total of $500,000) is being funded through IDA funds ($141,500) and Gas Tax funds ($358,500). Approval of the resolution authorizes staff to commence assessment district proceedings which will allow for the property owners within this district to participate in contributing a portion of the construction costs, preliminarily estimated at $31,858. The estimated property owner's share will be reimbursed with 7% interest over a period of 10 years. Attachments: A - Proposed Assessment District Boundaries with Ballot Summary NOT SCANNED.. B - Payment Schedules NOT SCANNJE" C - Ballot Summary with Street Address and Assessor's Parcel Number' jjj) D - CIP Program Detail NOT SCANNED E - Policy #505-01 NOT SCANNED NOT SCANNED FileNo.: 0725-IO-AD97·01 April 16, 1997 (2:00pm) H:\HOMEIENGINEERIAGENDAIAD9710XF.FXR /~~ ~...- -- .. _."--~. RESOLUTION NO. /f?:Þ1'~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING PETITION FOR FORMATION OF A SPECIAL ASSESSMENT DISTRICT ON THE 400 BLOCK OF OXFORD STREET FOR THE CONSTRUCTION OF STREET IMPROVEMENTS BETWEEN FOURTH AVENUE AND FIFTH AVENUE (CIP #0735-l0-STL229) WHEREAS, the City Engineer has received a petition from property owners in the 400 block of Oxford Street between Fourth and Fifth Avenue requesting that special assessment proceedings be commenced in accordance with the Improvement Act of 1911 for the construction of missing street improvements such as curb, gutter and sidewalks; and WHEREAS, in accordance with the requirements of Proposition 218, the "Right To Vote On Taxes Act" , a ballot has been mailed to the affected property owners and more than 60% of the property owners are in favor of the district; and WHEREAS, upon acceptance by the Council, the petition will be filed in the City Clerk's office; and WHEREAS, approval of this resolution will permit staff to begin assessment district formation proceedings. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby accept the petition for formation of a special Assessment District for the construction of street improvements on the 400 block of Oxford Street between Fourth Avenue and Fifth Avenue and direct staff to proceed with the assessment proceedings as required by the Improvement Act of 1911 and Proposition 218. Presented by Approved as to form by Lippitt, Director of ~~~ John P. John M. Kaheny, City Attorney Public Works C:\rs\adoxford . /~ ---~ -.-..~... ',,_..'-"'~-' ..__.__.._-~.._---_. £xtllB/T A , ¡I! '" · 1 i ~ ii' ¡;¡ _______. ! I l. ~ _n___ :1' iJ!! ------ ------- ~ i = >- ...... IlTl1lÀTHJHflO! t------- ¡ a:::: ~ --- ~ _ -- , v,, I ~ I.~ è, '.' '5 ~ I ~o.... >êk<~"j>® ; -=::::: ,,'J'h:¡,r r.".'II' ,.,1 - ___ 8 -=:: "-- ~ ," r-- ~ :::> L _ I- ~ --{::j:'~1 H® : en ~ ,. " -< r' ". I,." f-------- ......., Z- >R\ :. "'I,' ,', ® ~ 'd '. '{ . '.1> '" ¡¡: _ ~ ,,",, ...., '" I- ~ 0 " 'I.', 'f--- W ..... 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'" '" ~ S. 5!. ~' 0 0 Co :.., w " S = ~ 0 N 51 » ::. .. -0 .... '" 'CO 0 . - " '" '" 0 - n " 0 0 ~ ¡; '" Q. ~ Q. .. ~ 0 .....,10' 0 " ... a- '" = " " '" '" ~.. = a » _. <> " - '" '" 0 = " C;:J " ~ ~ Q. -;> :!! :8 " "" '" "" ...>¡('- g ~ .:e e ~ ? ? ? ~ ; e ~ 3 '" 0 51 ¡ 'j'!!. ~ ,r ~ a- · · S' ,. ] 3' :<i :ï'~g>~ 0 " 0 '" '0 "- Q. !t Š = a ;s. g- o I:: T' CI.I ~ Q. "" ¡;. ~!. g. " Q. 2. '" ~ · y . :S- o % '" ;0 '" '" .....,- "' trJ S' .. ~ ~ s. e. 0 ë: ~ "" .. '" w 51 » ::. .... b " '" c., -= :;: '" ~ ~ . - C- " ,. ~ - ;1, '" _. § ~ .. ñ' = .....,:r:> = " 0 ..., -.. a » _. It s.-š. ~/O --,,-. --.-.--- .... ... ---~ BALLOT SUMMARY EXHIBIT "c" ASSESSORS ASSESSMENT BALLOT STREET PARCEL NUMBER . ADDRESS NUMBER <D NO 496 OXFORD STREET 618-270-25 Cî) UNKNOWN 488 OXFORD STREET 618-270-49 Œ> UNKNOWN 478 OXFORD STREET 618-270-22 G) YES 472 OXFORD STREET 618-270-21 ® YES 470 OXFORD STREET 618-270-44 ® YES 466 OXFORD STREET 618-270-53 ø YES 462 OXFORD STREET 618-270-19 ® YES 446 OXFORD STREIT 618-270-18 ® YES 442 OXFORD STREET 619-270-17 ® YES 438 OXFORD STREET 618-270-16 @ YES 430 OXFORD STREET 618-270-45 @ YES 1198 OXFORD COURT 618-380-01 @ YES 1197 OXFORD COURT 618-380-09 @ YES 1196 FOURTH AVENUE 618-270-41 ® UNKNOWN 497-495 OXFORD STREET 618-301-D2 ® YES 485 OXFORD STREET 618-301-20 @ YES 481 OXFORD STREET 618-301-19 @ UNKNOWN 475 OXFORD STREET 618-301-04 @ YES 467-71 OXFORD STREET 618-301-05 @ YES 465 OXFORD STREET 618-301-06 ® YES 459 OXFORD STREET 618-301-07 @ YES 461 OXFORD STREET 618-301-08 @ YES 453-453A OXFORD STREET 618-301-09 ® YES 447-449 OXFORD STREET 618-350-13 @ YES 445 OXFORD STREET 618-350-01 @ YES 441 OXFORD STREET 618-350-02 @ YES 437 OXFORD STREET 618-350-03 @ NO 433 OXFORD STREET 618-350-04 @ UNKNOWN 429 OXFORD STREET 618-350-05 ® YES 423 OXFORD STREET 618-350-06 ® YES 419 OXFORD STREET 618-350-D7 @ YES 415 OXFORD STREET 618-35O-D8 ® YES 409 OXFORD STREET 618-350-09 ® YES 1208 FOURTH AVENUE 618-350-10 . AS Of 4/8/97 /? ~// COIIPU1[R ALE: C:\RI3\COII\SUPPORJ\STl229\ASSMTDST.DWG ~ -'----"'.-.-...---"-.' ',,- . .... _..,.__.,-----_.._._,.._..~_.--~- ex-! ¡BiT D CUE1EN I ANNE I I D~. / --- J~ -r-.. ¡ . ¡ I / N <" - ~ i i /J; r""-_______ I T \ Cl 0 j Úl- . --......... --I__~ 17. \j1~ __ - c" f--- :::"" ,Q - ............. 7----- -..........: ...., -..s? -- 1111I11 . III 11I11111111 1111111111 1111 1111 III . HI??;lU 11-; "- IIIIIIJ 1llIIIIIIII/lIIIJIIIIIIIIIIII\III,1II1.I1I1I1I1I /III 11I1 11I1 111I11I1 111I 11'11 11/111I1 ::. . OXFORD STREET T I - ),/ - -f? - -- ~ Á II : 'Tj - ""Ì ~ ~W'i¿ ð ~ y ~ < 1/) ~,~ ~ ~ . \ ~ ,~ ~ ~ ~/ - > t'Ij ""I ~ < :-¡I ..., t'Ij / z b1S~' T / 'V g PROJECT LOCA nON: /111I11I11I11I PROJECT TITLE DRAWN BY: A. STEVENS SIDEWALK IMPROVEMENTS - OXFORD I I STREET. BETWEEN FIFTH AND DAT., OIn6195 . FOURTH AVENUES Ii> -./ d-- ~ __._____n_'._+__ -------_... ,._,-~-"_...,~,- .- .~._--~-,_.__._---~-,_. eKH-/B/T D 0 0 .. .. N "f ~ CO .. 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'" .!!!~ e ¡::o~ .0 ;¡ ~(/)S !! !! « c 2 ° :l -g '" 1ií " 0 .<: Q. ...!!! ~ 0 § C':I'2a. :! ." c c (/) r c ¡:!~~ 6±::..2 I w fI' ~ " 0 " C · C '" (!) c-<{ < ¡:: I>. ..J Z :; ¿ ItI · tnoz (/) Õ ~ .2.!: 0 ~ 0: ~ W -"'l- t.> ,Q $ " · o ":E ... z '¡:.~ (ij ;¡::1;jm ." zW:E « « (/) ;3'5 " //?-/3 :;; (/) z « ~ ~ " .<: e,¡:!0 0 ;:i C " " ~ I ~ :> ¡¡: ... (!) I!J 'õ Õ :::::J.~ = " ",¡::", '" - - - c~« -. " .. UI 0 ~ -......-..--... --.~,._-_.._-'_. _..._---_...~... £XH /B/T E I COUNCIL POLICY I CITY OF CHUlA VISTA SUBJECf: PARTICIPATION BY THE CI1Y OF CHULA POLICY EFFECfIVE VISTA IN 1911 BLOCK ACT PROGRAM NUMBER DATE PAGE PROCEEDINGS 505-01 08-30-83 I OF 6 ADOP1ED BY: Resolution No. 11373 I DATED: 08-30-83 BACKGROUND There are properties within the City limits that do not haye full street improvements. In the past, Council has directed the owners of critical unimproved parcels to install their missing public improyements. The 1911 Block Act Proceedings were utilized in most instances. As an encouragement for property owner panicipation, the City has contributed funds for the completion of cenain items of work (i.e., grading, pàyement installation, etc.). Also, the City consistently has contributed engineering inspection and administrative services at no charge to the property owner(s). Howeyer, there is no Council adopted policy regarding City panicipation in 1911 Block Act improyement construction proceedings. This policy is designed to encourage the installation of missing improyements along developed residential lots. It specifically sets City panicipation goals for the improyement of comer, non-comer, and double frontage residential lots. The policy reaffirms City Council intent to require the installation of public improyements adjacent to undeyeloped property (residential, commercial, and industrial) through the formation of 1911 Act Assessment Districts or through the subdivision and building permit approyal procedures. This policy shall only apply to areas incorporated on or before this policy's effectiye date. PURPOSE To establish a policy for panicipation by the City in the construction of public improyements via the 1911 Block Act Proceedings (Chapter 27, Street and Highways Code of the State of California). POUCY The City Council establishes the following policy for City panicipation in 1911 Block Act Program proceedings: 1. General Panicipation a. The City, at no cost to the property owner(s) shall provide all engineering, inspection and administratiye services necessary to install missing improvements via the 1911 Block Act Program proceedings. b. It shall be the City's responsibility to relocate all existing public improvements found to be in conflict with the proposed street improyement construction. Such improyements shall include, but not be limited to: street lights, traffic signal standards, drainage structures, fire hydrants, etc. c. Engineering staff shall meet individually with each property owner prior to the program's public hearing to hand deliyer initial correspondence and to explain the plans, proceedings and this policy. Final engineering plans and project specifications shall reflect as close as practicable, the property owner(s) concerns provided they reflect standard engineering practice. ß--fA;:;_/~' .-.-.--- .._-....--.--...__._" --..-.- ..... ".-..-.. -"--. COUNCIL POLICY CITY OF CHULA VISTA SUBJEcr: PARTICIPATION BY THE CIIT OF CHULA POLICY EFFEcrlVE VISTA IN 1911 BLOCK ACT PRGRAM NUMBER DATE PAGE PROCEEDINGS 505-01 08-30-83 2 OF 6 ADOPTED BY: Resolution No.1 1373 I DATED: 08-30-83 d. Prior to the end of each fiscal year, the City Engineer shall submit to the City Council for approval under this program, a recommended list of projects for scheduling in the ensuing fiscal year. Funding for the program shall be detennined annually and shown in the Capital Improvement Program. e. City participation in this program shall be limited to developed parcels that cannot be split into lots or building sites. 2. Deyeloped Residential Lots a. Non-Comer Lots It shall be the City's responsibility to overlay or reconstrucr the roadway travelway adjacent to non-comer lots when the rravelway is already improved and needs an overlay or reconstruction to accommodate drainage or traffic safety requirements. The City's responsibility described aboye is shown on Figure 1 (attached). . b. Comer Lots For the purposes of this policy, the corner Jot front lot line shall be defined to be the shorter of the two adjacent street lot lines. In this case of a non-rectangular corner lot, the front lot line shall be the average width of the lor. (See Figure 2). It shall be the City's responsibility to: (1) Install curb, gutter, sidewalk and payement (if non-existent) adjacent to 1/2 the comer lot's side street frontage. (2) Overlay or reconstruct the side and frontage street's travel way when needed to accommodate drainage or traffic safety requirements. (3) In the eyent that there are improyements already existing along the comer lot's side property frontage already existing, these improyements shall be credited to the City if they need not be removed to accommodate the improvements to be installed. The City's responsibility described aboye is depicted on Figure 3 (attached). 3. Dual Fronta~e Lots It shall be the City's responsibility to: ~ /~-D .-..----...-..--.. ~--",,,,-.-...-,..--.,--.,"......._-.--.-.-------.-. COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: PARTICIPATION BY THE CITY OF CHULA POLICY EFFECI1VE VISTA IN 1911 BLOCK ACT PROGRAM NUMBER DATE PAGE PROCEEDINGS 505-01 08-30-83 30F6 ADOPTED BY: Resolution No. 11373 I DATED: 08-30-83 a. Install curb, gutter, sidewalk, and pavement (if non-existent) adjacent to the entire lot's rear street frontage. b. Overlay or reconstruct the lot's rear streer travelway when needed to accommodate drainage or traffic safety purposes. For purposes of this policy, dual frontage lots shall be a lot having frontage on two parallel or approximately parallel streets, one of which is an "alley". 4. DeyeIoped Industrial/Commercial Lots The City contribution towards the construction of improvements adjacent to deyeloped industrial/commercial lots shall be limited to: a. The overlay or reconstruction of existing roadway travelway areas when found to be required for drainage or traffic safety purposes. 5. Undeveloped Residential. Industrial and Commercial Lots This policy shall reaffittl1 the City Council's intent to require the installation of missing Împroyements adjacent to undeveloped lots (both comer and non-comer with and without double street frontages) through: a. 1911 Act Assessment District procedures. b. subdivision requirements, and c. building pettl1it approyal requirements. There shall be no City contribution towards the construction of improvements adjacent to undeyeloped residential, industrial and commercial lots. In the event that an owner petitions the City for inclusion of his/her undeveloped parcel in a 1911 Block Act Program, all expenses shall be borne by said owner. 6. Applicability This policy shall be applicable to areas within the Chula Vista City limits on or before its effectiye date. ~ /~~~ ,_...--._~ . " ~..._,..._.-.__......_---_.- '-"--"~'-- -- ~_.._-- COUNCIL POLICY CITY OF CHUlA Y1ST A _~ SUBJECf: PARTICIPATION BY THE CITY OF CHULA POLICY EFFECfIVE VISTA IN 1911 BLOCK ACT PROGRAM NUMBER DATE PAGE PROCEEDINGS 505-01 08-30-83 4 OF 6 ADOPTED BY: Resolution No. 11373 DATED: 08-30-83 c o - >, ... ... u . - "... "\ I II = z ~ I II ~ ~ <> ..... VI 0 :> I leu '" I IQ I gl ';'0. I II ~ t; ~ .. g' I . ~~ Iij '" ..- II ~ ~ ~ ~.~ I II ~.... ~ - "''' ~ >:) u _ '" I II ¡:: ~ * ~':; .~ I 11 ~"1U, ~ t: 0.... 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CITY OF CHULA VISTA SUBJEcr: PARTICIPATION BY THE CITY OF CHULA POLICY EFFECTIVE VISTA IN 1911 BLOCK ACT PROGRAM NUMBER DA1E PAGE PROCEEDINGS 505-01 08-30-83 50F6 ADOPTED BY: Resolution No. 11373 I DA 1ED: 08-30-83 U 9 II ¡..i.lI ,¡ !/N ::z~ I O.J ~ I I, IL' I , , >- II I J I ... () I - " ... I - : I "" "" I ... 2: '-r- '" ° 0) c.. % "" 0 w .. c: 2: .. Þ--~8 ~ .. c 2:0... 0) w...." 'oJ :<: 2: ..J ;¡ W c:_ >L¿JZ é.J ~ 02:Q: C:c:w c..o... ::::- '0 :t:uw - ° 0) . c: C '" ...."w - - -... W -'2: "'c e:: =>_ 0) 0 "'... '0" ""2: ... we::... - '" 0"'0 -0 -'w... 0).3 ""w c: ..... ..J '" -'2: .. 0) -2:0 .....c: "'Oc: r-J c... -z"- 0 ..... ..... - "-0 -: ...J /12 ---- - - ------- ----- _oJ I' d J: \ () ~ /?~/.?' - .--...--.---." _,.'..._____m_.__.'_ '.'''.___._..n'.__ . 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'- ';g~....llO') C'\·x~~ ,¡..,I.....QJ i1j r;:::rr;n~~07'JrrOð':T c.. D'" C 01'-" CD'" :<:¡¡._:5 g' ~ ....... .. _... e 0_ '''' E 0._ . ................ Q.I OJ VI s.. = c::"O Q.I QJ V'I ~!u - 3 + Bro..... > c_ VI ::I 0·_ C > c:_ VI <:::i; .1.:Z3èi.LS ~l7.J./"YOð::l ' --~;::";ël U c:_"' X:=';š ~~ .. . .. Q)~ - (\, M - (\, t") ~~ ~, ~~œ~w~ ~....«~~.... L¡,.Cl::OZt-<C.:H.I,J V)_O~ ~ /¿j.~.--/'1 .-- .--.-...,,-.,.,.-..-,- COUNCIL AGENDA STATEMENT Item /7 Meeting Date 04/22/97 ITEM TITLE: Supplemental Report to March 25 BECA Agenda Statement Regarding Proposed Amended Contract with Southwestern College SUBMITTED BY: Commoo'" """'''m,"'&fì¡'' C c,. REVIEWED BY: City Manager ~ ~ ./] (4/5ths Vote: Yes_ NolL> BACKGROUND: At the March 25 meeting, staff recommended that Council approve an amended agreement with Southwestern College for consulting services to BECA. As discussed in the March 25 staff report, staff envisions changing the contract's scope of work significantly to reflect strategic repositioning of BECA. Staff is recommending that BECA continue to emphasize support for start-up environmental businesses via the Incubator program, but to shift non-tenant services (previously provided by the BETRC under contract to Southwestern College) to an emphasis on technology transfer and commercialization. This requires eliminating the BETRC which is currently staffed by Southwestern College and replacing it with a Technology Transfer Program affiliated with an R&D institution such as UCSD. Specifically, staff is recommending that the Southwestern College contract be amended to eliminate 4 BETRC positions, to keep 2 Southwestern College positions, and to reassign these 2 positions to exclusively support incubator tenants. In response to this proposal, Council raised several questions, continued the item, and requested staff to return with additional information. Staff is attempting to address these questions in this supplemental staff report. RECOMMENDATION: That Council reconsider and adopt the resolution submitted with the March 25 staff report approving an Amended and Restated Agreement between the City and Southwestern Community College District for Consulting Services to the Border Environmental Commerce Alliance in the total amount of $165,000 funded by the City's EDA grant. BOARDS/COMMISSIONS RECOMMENDATION: The BECA Advisory Board, which acts in an advisory capacity to BECA staff, has discussed the proposed revised BECA services, the amendments to the Southwestern College contract, and the proposed UCSD contract. The Board has agreed in concept, with the recommendation that the new Technology Transfer Program maintain an emphasis on cross-border application. DISCUSSION: 1. Whv is staff recommendina a strateaic reDositionina of BECA services? BECA's mission was established to "encourage the development, commercialization and cross border trade of environmental technologies, goods and services as well as the utilization of environmental management techniques by cross border businesses." To accomplish this mission, two initiatives were created: 1) a Border Environmental Technology Resource Center (BETRC) to offer a centralized regional clearinghouse for state-of-the-art environmental technology information and specialized assistance; and 2) a Border Environmental Business Cluster (BEBC). or incubator, to help start up environmental businesses. Both the BETRC and the BEBC components were 17-/ ..-... - - ..__.._--.._--_..~~". Page 2, Item n Meeting Date 04/22/97 developed to address opportunities and demand for environmental business support services identified by wide-ranging sources, including regional government regional and state economic development strategists and private sector forecasters beginning in the early 1990's (see Attachment A). (The BECA plan was developed in 1994 and funded in 1995.) BETRC was originally designed to provide specialized environmental business development services (business plan development, market research, financial management, export, etc.) to environmental businesses from throughout San Diego County as well as to provide assistance to all types of San Diego area businesses wishing to learn about environmental management techniques. It was also intended to centralize information (databases, etc.), coordinate regional environmental business resources, and act as a matchmaker for joint venture opportunities. The BETRC was staffed by Southwestern College under contract to the City, and includes 4 professional staff (BETRC Manager, Cross Border Environmental Marketing Specialist, Environmental Management Specialist and Business Development Specialist) and 2 clerical positions. Through a mid-point strategic planning process and reevaluation of BECA goals and objectives, it has been determined by both Southwestern College and City BECA staff that demand for counseling services offered through the BETRC to outside clients and to tenants has not been as great as projected due to changes in regulatory and market-related forces. On the average, BETRC professional staff were utilizing only 35% of their time performing direct business counseling. While BETRC staff time was also required for administrative duties and BECA program development, this figure indicated a need to redirect BECA efforts - as staff is currently recommending. Among the factors which have contributed to the lessening of demand are: reduced federal Environmental Protection Agency (EPA) staff and inspections budgets, recent California initiatives to make environmental regulations less burdensome to business, recession impacts, and a drop in the Mexico market (see Attachment B). Additionally, consultant firms, trade associations, and on-line resources have entered the market to provide some of the consulting services originally proposed to be provided by the BETRC. Therefore, staff suggests that the more general environmental business counseling services offered by BETRC to non-tenant clients should be eliminated. On the other hand, our mid-point BECA evaluation has determined that the Incubator program meets an ongoing demand to support small, start-up businesses and offers growth potential. This potential can be enhanced by encouraging linkages with research groups which can transfer new technologies to appropriate start-up businesses. Therefore, staff is recommending that the Incubator program continue and that the Southwestern College contract be amended to eliminate 4 of the 6 contract positions (the BETRC Manager, Cross Border Environmental Marketing Specialist, Environmental Management Specialist and 1 clerical position), and to reassign two of the former BETRC staff (1 professional, 1 clerical) to provide assistance exclusively to Incubator tenants. Staff is further recommending that the original BETRC component be replaced by focused services relating to environmental technology transfer, and particularly related to water and energy conservation, Le., services for a more defined BECA market niche. The dollar savings from the Southwestern contract cutbacks would be utilized to contract with UCSD or a similar organization for focused technology transfer and commercialization services. The proposed BECA re-positioning to focus on technology transfer is consistent with BECA's Mission and is based upon the fact that national laboratories and other research institutions are /7~~ .. .---.....- ...__..,--,,-,,----,----- Page 3, Item /1 Meeting Date 04/22/97 actively seeking partnerships to help match emerging new technologies with entrepreneurs and consumers. Staff is proposing that BECA move in the direction to playa needed matchmaking and support role, a la the UCSD CONNECT model which has helped the Biotech industry here in San Diego. 2. How Manv Businesses have been served and iobs created bv BECA? While less demand for general environmental business support services has been generated than originally anticipated, significant BETRC activity has taken place. BETRC staff has provided consulting services to 67 outside firms as well as to each of the total 17 incubator tenants since the program's opening in July 1995. During 1996, SETRC's 3 professional counseling staff provided almost 800 hours of counseling to BECA tenants and outside companies. (Note: The SETRC Manager position was primarily administrative and has been vacant since August 26, 1996.) These services have been fully documented in Southwestern's client contact sheets and in their Quarterly Reports as required by the City and by EDA. (These Quarterly Reports have previously been submitted to Council as information items; see Question 4.) However, while BETRC staff documented the number of businesses served, the nature of the assistance, and related hours of counseling, they did not monitor long term results, i.e jobs created or saved directly attributable to BETRC services. Therefore, job related data pertaining to BETRC services is unavailable. The Incubator, as noted, has served a total of 17 businesses to date with a maximum of 14 tenants at anyone time. Currently, there are 10 tenants. Incubator jobs created or saved have been tracked and total 54 as of December 1996 (last Quarterly Report). Due to a variety of reasons, including start-up tenant financial problems, it is common for incubators to experience tenant turnover. Of the seven tenants who have departed from the incubator since its inception, three have left due to lack of fiscal viability (two went out of business). two have relocated outside the County, one left due to the dissolution of a partnership, and 1 left based upon a lack of services to meet his specific needs. Staff acknowledges past problems with the incubator program which is largely attributable to personnel turnover, including: the previous lack of an exoerienced Incubator Manager, the departure of the initial Incubator Manager after 12 months (to accept a private sector position which significantly increased his salary); hiring of a Temoorarv ManaQer for 4 months, and a vacant Incubator Manager position for 2 months (see Chart, Attachment C). We will be revitalizing business tenant recruitment and service delivery now that our new Incubator Manager is on board (effective February 28, 1997). Ten new tenants are projected over the next year. This number is based on the projected occupiable space, the experience of our new Incubator Manager, the on-site business development support proposed under the Amended Southwestern College contract, and the technology transfer assistance that will be provided by UCSD. Our new Incubator Manager, Larry O'Donnell, has over 20 years experience in new business development including 7 years as an Incubator Manager. He has met his annual projections for increased tenancy for the last seven years, and has seen over 80 tenants graduate from his incubators and remain successful for at least three years afterward. He and his businesses received the first Inc. Magazine award for business growth in the state of Hawaii. The new manager is instituting an improved communications program with BECA tenants. Review of tenant financials is being regularly implemented, an evaluation of current tenant selection criteria is underway, and a new tenant application review process is being instituted. /)~3 .."_..-~.__.-. -. -......-----.----... Page 4, Item n Meeting Date 04/22/97 In terms of measuring incubator tenant success, "successful tenants" are those who graduate from the Incubator program exhibiting business and job growth, and fiscal stability. BECA has successfully graduated one tenant to date - Metallic Power. (While some tenants may graduate sooner, technology-based incubators typically offer a 30 month tenant program, after which tenants should be able to "graduate" or are requested to move on.) Staff suggests that it may be premature to judge the performance of the incubator program and of the overall BECA program. At this time, our federal funding agency is pleased with BECA's progress (BECA received an award in March at the Western EDA Regional Conference for partnership building and innovation in a unique program). In terms of the incubator component, we suggest that in light of BECA's short lifespan, tenancy is fairly well on track. And, as noted, the new Incubator Manager is currently expanding the occupiable space to include approximately 10 new tenants in Phase II of the building, consistent with the original BECA Operating Plan. To help put the incubator's performance in perspective, the following information is provided: There are 29 incubators in California. Only 8 are technology-related incubators. Of these 8, three serve environmental businesses. A comparison of incubator staff and tenants is shown below. Square Number of Number of Number of Years in LocationlType of Incubator Feet Tenants Graduates Staff Operation Chula Vista Border 10,000' 10 1 4** 2 Environmental Business Cluster Thousand Oaks 10,000 12 2 2 2 Environmental Business Cluster San Jose Environmental 20,000 17 12 4 3 Business Cluster San Diego 19,000 8 2 11 2 Technology Incubator . . An additional 10,000 sq. ft. of space will be available 1 July 1997 ** Includes 2 City grant-funded employees (Incubator Manager and Administrative Assistant) and 2 9rant- funded Southwestern College employees (Business Development Specialist and Senior Clerk) As can be seen on the chart, the BECA incubator tenants, staff, and graduates are similar to other programs of the same age (2 years). San Jose's incubator shows stronger performance for a number of reasons: a greater economic base in the surrounding Bay area; an additional year of operation and experience; the inclusion of . start-up affiliates of established corporations (i.e. tenants with parent corporation support); and fewer administrative constraints, as the incubator is not associated with a government agency or receiving government grant monies with the associated regulations. Additionally, Jim Robbins, the founder of the original 2 Environmental Incubators, is headquartered at the San Jose facility. Staff suggests that BECA's "successes" will increase with the addition of our new Incubator Manager and the additional 10,000 sq. ft. of occupiable space. We also intend to network more closely with the other 2 environmental incubators (an MOU is currently being prepared). /7-Y -.-'.__.- -"""'-~ Page 5, Item 11 Meeting Date 04/22/97 3. Is the Droaram "toD heavv?" Whv are two Southwestern contract emDloyees beina recommended to continue under the amended contract? For reasons explained under Question 1, staff is recommending that the Southwestern College contract be amended to eliminate 4 BETRC positions and the BETRC program itself. The BETRC is intended to be "replaced" by a Technology Transfer Program under contract with UCSD. Once this agreement is finalized with UCSD, it will be brought to Council with information concerning the proposed scope of work and related costs. Therefore, staff will address its response to this question as relates to Administrative staff and the Incubator component only. It may be helpful to provide an overview of the BECA organization (see Organizational Chart, Attachment D). City employees include the BECA Director (responsible for overall BECA strategic planning, budgeting, personnel, partnership development, program implementation, and fundraising); the Director's Administrative Assistant; the Contract Manager (currently vacant; responsible for grant administration, accounting and regulatory compliance); and the Incubator Manager and his Administrative Assistant. The BECA Director is responsible for development and implementation of the overall BECA program - i.e. creating a regional program that is the recognized leader in promoting environmental business, environmental technology transfer and commercialization, and cross-border application. This includes not only oversight of the incubator program, but development of BECA partnerships, resources and services to facilitate commercialization and export. The Incubator Manager is responsible for all aspects of the incubator program, including tenant recruitment and selection, lease agreements and property management, marketing, development of tenant support networks and resources, fundraising and corporate sponsor development, and most importantly, overseeing ongoing tenant consulting and technical assistance. Staff is proposing that the Southwestern contract be amended to eliminate four BETRC staff but to reassign two of these, the Business Development Specialist and one clerical support position to exclusively assist incubator tenants with hands-on consulting critical to the incubator program's success, (These two Southwestern College positions previously assisted outside clients as well, as part of the BETRC's duties.) The Business Development Specialist would provide on-site counseling and business assistance to tenants on a full time basis. Utilizing experience from the technology, science and regulatory compliance disciplines, the Business Development Specialist would counsel tenants on business plan and market development, help them form needed alliances, and help them develop financing through contracts, grants, venture capital, partnerships and/or loans. This position would also continue to oversee the BECA consultant pool which is available to provide specialized technical assistance such as legal patent and copyright advice, bookkeeping help, tax planning, and translation services. The Project Clerk would provide important clerical and administrative support, including scheduling and payment of the consultant pool (consistent with EDA requirements), daily tracking of client counseling, follow-up on tenant assistance projects, and general computer support. The services provided by these two contract employees are viewed as crucial support to the Incubator Manager to ensure the success of our tenant start-up environmental companies. Given Southwestern's experience in our program, their low administrative overhead, and the limited time remaining in our EDA grant, continuing their contract as amended is suggested as the most cost-effective approach to providing needed tenant support staff. The proposed $165,000 contract includes $120,000 in salaries and benefits (annual salaries are $45,000 for the Business /7-3 _..~,-. -"...-..''''-- - --"~'-'-'-----------'----"-- Page 6, Item 11 Meeting Date 04/22/97 Development Specialist a,nd $24,000 for the Senior Project Clerk; the balance covers benefits, overtime and clerical "temp" support). $6,500 for supplies, $3,000 for travel, and $8,000 in Southwestern College administrative fees (less than 5 % of the contract cost). The contract also includes $27,500 for the BECA consultant pool, which consists of specialized outside consultants selected on a competitive basis from the region and utilized only as needed on a case-by-case basis. As there has already been a significant staff turnover (see Attachment C). staff feels it is particularly important to retain existing employees and their experience with the program. Further, a change in on-site tenant service provider would require a time consuming consultant RFP and contract negotiation process (or hiring additional City personnel) leaving little remaining time within the EDA grant period; accordingly, it would be very difficult, if not impossible, to find candidates. 4. Could the needed tenant support be provided bv the Southwestern ColleQe Small Business Development Center? Staff has considered this option, i.e, eliminating the existing contract entirely and referring tenants to the Small Business Development Center at Southwestern College. However, this raises some problems. Firstly, a key function of an incubator is to provide on-site, readily-available assistance to tenants. With Southwestern College's existing workload, the need for tenants to schedule in advance and the uncertainty of counselor availability, and the need to travel off-site, this fundamental principle could be undermined. Secondly, the existing Business Development Specialist has experience in the environmental business field as well as with the BECA program and its resources and partners, Staff suggests that for these reasons, the proposed staffing continuity during this early stage of the Incubator program, is particularly important. Staff has also considered the option of eliminating the clerical assistant position from the amended contract leaving only the Business Development Specialist. However, as discussed previously, this position is needed to coordinate the consultant pool (coordinate, schedule, and pay them). and to provide administrative support to the Business Development Specialist in order to free him to focus on one-on-one counseling. Further cutbacks in our contract with Southwestern College could be considered as part of BECA's ongoing program evaluation and in the context of future grant funding/budget constraints and will be reported to Council as appropriate. 5. How are we monitorinQ Southwestern's accountabilitv? Council expressed concerns regarding the need for contract accountability via program benchmarks and established "success criteria". Staff agrees that criteria for measuring performance are essential. When Council approved the original contract with Southwestern, also approved were 35 separate BETRC benchmarks to which Southwestern would be accountable. Those benchmarks included not only direct consulting services, but program development and implementation such as developing service delivery cooperative agreements, establishing cross- border joint ventures, marketing, holding environmental business seminars, establishing an environmental business library, and securing access to select databases. These benchmarks were reported on to staff, and in turn to Council, on a Quarterly basis. Attached for your information are the Annual Report for FY 1995/96, and 1 st Quarter Report for FY 1996/97 (see Attachment E); these were previously submitted to Council via Information Memorandum in their February 18, packet. Also attached is the 2nd Quarter Report for FY 1996/97 which is being submitted to Council for the first time via this A-113 (see Attachment Fl. / 7~ ¡;, ,-<,-..---..-.". -- ~..._.~--~-_..-" ---- Page 7, Item n Meeting Date 04/22/97 At this time, staff is recommending that the contract be amended to limit the Scope of Work to direct consulting assistance to tenants only. Therefore, the amended contract does not include benchmarks, per se, but instead requires continued reporting of services delivered to individual tenants via the "Counseling Record" sheets which are summarized in the Quarterly Reports (see Attachment 1 to Exhibit A of March 25 report). Additionally, staff will initiate a process to obtain written evaluations by tenants of the contract services on a quarterly basis. It is important to note that as proposed in the amended contract, the Business Development Specialist would be providing services" as directed by the Incubator Manager." This will provide BECA and City staff with clear authority to prioritize and oversee the contract employees' activities. 6. How are we measurina success? It is important that we monitor BECA's performance and evaluate its "success." In terms of past performance, as noted, during BECA's 18 months of existence, 67 outside firms were provided counseling and technical assistance by BETRC staff. (The number of new jobs created by BETRC are not available.) Additionally, a total of 17 firms were served by the Incubator, with 10 existing tenants. The incubator has created 54 jobs to date. In determining criteria for measuring both past and future success, it is important to remember the original mission of BECA, which was not only to directly serve environmental businesses, and thereby create new jobs, but also to facilitate the development of an environmental business cluster in Chula Vista specifically, and in the San Diego County region generally. That is, among BECA's goals were to become identified as a unique regional resource for environmental businesses, to enhance Chula Vista's image as a city that supports regional technology-based companies, and to attract environmental businesses and related support firms and spur cross border business development over the long term. Therefore, staff suggests that the program be measured in terms of both short and long term results. The Economic Development Administration, our grantor, views job creation by the BECA program as a long-term (as well as short-term) endeavor, as is the case with many other EDA-funded programs. For example, a recent EDA survey of grantees asked for job creation data four years after grant project completion. By the very nature of this innovative grant funded program, there are no guarantees and there is "risk." However, if successful, the program could have significant short- and long-term economic development results for Chula Vista and the region. With that in mind, staff suggests that BECA be evaluated in the future in terms of: EVALUATION CRITERIA · Number of tenant leases and number of tenants successfully graduated · Successful technology transfer to BECA tenants and clients · Businesses assisted to grow, as measured by gross revenues · Businesses assisted to export to Mexico and/or the Pacific Rim · Jobs and businesses created · Attraction of corporate sponsors and affiliates · Attraction of BECA Board Members · Affiliation with research and technology providers to collectively offer unique services to San Diego County businesses · Successful fundraising to ensure program continuity /7-7 "------ -.- -~. ..-..-----.----- Page 8, Item 11 Meeting Date 04/22/97 7. What are BECA's Proiected Accomplishments? Under the proposed scenario, BECA will continue to offer an Environmental Business Incubator to support start-up environmental businesses and will promote environmental technology transfer and commercialization. In terms of the incubator program, over the next year BECA staff project the recruitment of 10 new tenants, and the creation of at least 25 new jobs, for a total of 79. In terms of technology transfer, BECA staff are pursuing a new partnership with UCSD and its affiliated national laboratories (e.g. Lawrence Berkley, Los Alamos and others) in order to accomplish the following: 1) transfer of new technologies from laboratories to local business and entrepreneurs for sale in the marketplace in order to grow business and jobs; and 2) application of new technologies to environmental management and clean-up by industry on both sides of the border and in the Pacific Rim through the identification and/or creation of national and international markets. BECA's technology transfer goal within the next year is to create a minimum of three new businesses in the incubator, or in the local area, that develop and sell these technologies in the marketplace. BECA's goal over the next 5 years is to create at least 200 new jobs. In the future, BECA staff will monitor and evaluate BECA's progress, including both the Incubator Program as well as the proposed Technology Transfer Program, using the criteria shown under Question 6, and will report to Council on a quarterly basis. FISCAL IMPACT: The proposed Amended Agreement is in the amount of $165,000, funded by the already approved U.S. Dept. of Commerce, Economic Development Administration (EDA) grant. Expenditures by Southwestern during the final 12 months of the contract will be reduced from approximately $325,000 to the $165,000 amount. The $150,000 savings will be reprogrammed to BECA for other purposes, i.e. an additional contract for UCSD services pending Council approval of a new agreement. The recommended action results in no costs to the City. ATTACHMENTS f A - Th, Ewlroo_,' c,""~ - ''''''0",'' I'roj,ctod D_oo, B - Wall Street Journal Article (6/6/96) - Changes in Environmental Industry C - BECA Staff Turnover Chart D - BECA Organizational Chart &J E - Annual Report for FY 1995/96, and 1 st Quarter Report for FY 1996/97 E-t F - 2nd Quarter Report for FY 1 996/97 g (OS) H:\HOME\COMMDEV\STAFF,REP\04-0B-97\BECA.2 [April 15, 1997 (2;56pm)] /7~6 .-.--------.-.....-. ...... .-.....-... ,..._._._~---~------_. :ff/? Attachment A The Environmental Cluster - Previously Projected Demand "' "- .._-~,._.__.._,.... .._-, ENVIRONMENTAL INDUSTRY CLUSTER Inclusion in MisceUaneous San Diego Economic Development Strategies and Reports A. San Diego Economic Development Task Force Report, December 1991: Recommended objectiye: "Attract and retain environmentally comDatible industries such as recycling, solar energy, and hazard waste disposal as part of the Economic Development Program." B. San Diego Economic Adjustment Report, 1992 Identified industrial sectors likely for defense conversion including: aerospace, transportation, software and multimedia, computers (hardware and software), digital imaging, communications, precision instruments (electronic), healthcare (biotech and biomed), entertainment and information, consumer durables (transport technologies), and "business services - environmental services and Droducts". It also identified "Mexican Market Growth and Prospects by Industry (screened for San Diego). Industries including "Pollution Control Equipment" and "Petroleum environmental control equipment". C. San Diego Economic Development Corporation 1992 Business Marketing Campaign Identified business attraction "Prioritized Industries" to include: "cleanirecvclable. R&D, light manufacturing, maquiladoras, corporate headquarters" D. SANDAG Regional Economic Prosperity Strategy, October 1995 "Most of this region's new job opportunities will come from "home grown" entrepreneurs and businesses, not from outsiders. Between 75 and 80% of net employment growth comes from new business start-UDS and on-site expansions of existing businesses, and more than half of all new jobs are produced by independent businesses less than 6 years old..... Investing in our home grown industries will take advantage of our existing strengths..... We have an established base of businesses that are defmed as high tech industries, producing high-value added goods and services, such as engines and turbines, office and computing machinery. communication equipment, aircraft and scientific instruments. We have an expanding base of companies in emerging growth industries, such as biotech, biomed, environmental technolo2ies/services. fiber optics and microelectronics..... These home grown high value added industries and fledgling firms should be supported more aggressively." E. Greater San Diego Chamber of Commerce Economic Bulletin cover article, March 1, 1996 Identifies "San Diego's emerging high tech industries". States: "Other significant segments among San Diego's high tech businesses include ener2Y and environment comDanies emDlovin2 4.510 workers in 1995. These companies develop and produce equipment or instruments used for the detection. evaluation, transmission or generation of electricity or related power, or identification and remediation of environment hazards." F. "Technology Letter, San Diego Edition", 1996 Annual Report Newsletter (Editor: Broce Ahem) Identifies San Diego Clusters as a Percentage of the Overall Industry: "In San Diego, business promises to be very good for those companies specializing in environmental services". Aerospace & Defense 21% Computers & Peripherals 18% Telecommunications 15% Electronic Components 12% --7' Electronics Manufacturing , 10% Software 10% Energy & Environmental Systems 6% Test & Manufacturing Instruments 5% G. City of San Diego Internet HomePage (accessed April 96): See. attached. [(MD)c:\wpSl\document\692.96 (rev. April IS, 1996)] A-I . , . ___.__..._._.. ___.._ 'H_'_ - Sar 0;:90 Economic Development Corp. - Environmental http://www.sdedc.com/envlron.html =-.... fir ..~~;J}!t) ,', . f~~tþ;,·, . .-. ~. ·..·:~T ..·..;nu. .·":"":'"c .:;;;;.:. .;;: .;:;; Green Jobs Growing in San Diego A recent national survey revealed that the vast majority of Americans believe that the interests of business and the environment can coexist. The hundreds of companies specializing in environmental services in San Diego would agree. In San Diego, business promises to be very good for those companies specializing in environmental services. "There is a huge need for environmental technology in Mexico," said David Merk, chief administrative officer of Greenfield Environmental in Carlsbad. "It's a multibillion dollar market. " "The need is in technology like air pollution control devices, solid waste and wastewater treatment facilities, that can fit industries' needs as they develop." -- San Diego Business Journal Consider this as well. The passage of the North American Free Trade Agreement (NAFT A) requires that companies in Mexico must spend more to protect the environment. Today, Mexico spends about lISOth of what the United States spends for environmental protection. With NAFT A, that expenditure will grow each year and companies specializing in environmental technologies are sure to benefit. That's just one of the reasons so many environmental companies have located and will continue to locate in San Diego, a city perfectly positioned to seize the opportunities presented by NAFT A. The well-established group of environmental companies in San Diego -- Greenfield Environmental, Science Applications International Corp. (SAIC), International Technology, Access Research Corp. and Advanced Pollution Institute to name just a few -- stand ready to benefitfrom increased expenditures on the environment, not only in Mexico, but in other foreign countries, California, and throughout the United States. . .. . ... ..... .... ~. :. . , "::."':::':. :.; ......:..:;._:.^v.. ..".,...". Environmental Clean-up is a Growth Industry 1 013 A-d-.. . , 04/05/96 07:43:22 ..- -."....--.... ~~.~._.---- Attachment B Wall Street Journal Article (6/6/96) - Changes in Environmental Industry .'"--..-.---------- --- I INDUSTRY FOCUS Environmental Cleanup Business Is Down in the Dumps Swept by Consolidations and Layoffs, Some Companies Are Forced to Innovate By TIMOTHY AEPPEL ,', ,;'. t . Colo.. he recently had to shed over half his roff Rt:'por!('rofTHE ':"....1..1.. STREET~OL''''N'''L Environmental Services 'Indu*y:atå :Glan ":" work force. after he lost a major contract to These are lean "mes for an md"'try ... . . '..' 1. .. ...,. ... ceo help clean up a sprawling iadioactive that was su sed to et (at cleanin u ," ";" ~-.: " .-:, .,\':7',~, >.:t. .:: ,<~~ ,'~~;:~~¡;~r,:'{:;ë: the enVÎ~n~~t., g , g p . TotaIEnvlronl1Jem.alServlc~~ Ma~et '~150_~f!llon/!!!!~~~'~:J"'->::" waste site near Denver. The woi1t went to another company. But Mr. McMullen says ConsIder what s happened to_ Smt~ \; . Sohd waste managem~fll industry:.;.,:, ~_~ t Various.types of environmental testing and' aJtemative work is harder to flnd and it Environm.ental T~ology Corp. When It ,.: _ EnvIronmental eqllipqìent and technology 'p monllon~ pays less than it used to, "We'vê.seen rates wentpublIclnthe mld-l~s, th~company, "~businesses J" i;: .' {, . Hazardo'tiswaste management (paid for environmental workJarop 25%." then known as Canome. EnVlronmental.;\ '; ~,' ~" 1'!IÏ-", Y';I^' .' '" ,!"_',' he says. The hourly rate for environmental Services. was a Wall Street darhng. soar-.. ,¡ '¡¡Environmental FlemedlatlDll anl.Dn$ Itlng' :/3ilt/iDn''i!li%W , _ se . es is' now about $60. :;p~¡ tng-to $30 a share on expectations.1hat:"_, "¡r ~ ~ _ . ".~ ~;¡::'1.L ": environme'.!tal businesses were a wave of 'y Consulling: about $12biHion .., ',_~,:;.~ ~mediatio~: about $8 billion While some companies are.sUI"\'Îving by the future", , 'if, . A broad anay of design and engineering busi- þ: _ The actùa'l design and implementation 01 focusing on specializtd niches, others have used the downturn to buy former com- Now. th~ company. b~ in Newport ~$ nesses,gearedtOheJpingSOlvepastenviron-_I~ Jj cleanup programs petitors at bargain prices. 'There are Beach. CaUt., has see~ Its stock fall to ~ mentalproblemsandPreventfuturep~ K . Big names: Intemational TecnnoJogy, OHM, definitely successful companies out about S3 a share, has laid off a third of Its, '7. Big names: CH2M Hill, Environmental',:.- ~: t:;. f.Sevenson Environmental Services and CET work force since 1994, and is scrambling + Resources Management Group and Roy f,rt: Environmental Services ~ there," says Mr_ Maxwell of the Environ- for business. ,"The competition has gotten;:S, Weston n~_. ". ," -'.. . (, ~ ~; - _-~ . -. 3, mental Benchmarker newsletter, "but fierce," sa~,John Poling, the ~_mpany's 7'''~~ØotiiÓíí-¡;¡uït$1jìf~B'''4\i._~_.~µµo~>:ê;i¡)' mostly they're doing ,well because.they're urer.>".: ~, . ,,{ .~:-;: ,:ißY:¡þl{:-ii<:':~'<'Þ;~~;'t~:",;:g&'J'rtf!i ; ^ .<t:!',~ .~..'.> ~';§;~y,;: .'.: ··.,)->~tt~:':}'«:u:m'¥: well-managed, not because the business is ,Sml.th EnvironmeDtaI is haidÍy'àlone. -. ""': 1.1 _,_ . '-'f,¡.:'" ',..' : . booming." . Ma:ny ,companies -in the S2Q,billion_envi- when Environmenta1,.Resour(es.saw 00::-'" ~y 'other cofÍ:¡Panies~-;rrc Is putting Joan Berkowitz, of Farkas BerkÒwitz & ronmental remediation and consulting in- mestic revenue surge an aýêrage of SO'Yd a' ',. ter . emphasis on: risk assessment, Co. ill Washington, says consoUdâtion Is dustry, a broad sector that includes con- year, companies likerns ,are having -to helping clients detennine the actual rtsks pushing the business toward å.tWò-tiered cerns doing everything from planning adapt to much slower growtti: This means . ed by a-hazard. structure with a largenumber.;~f small, cleanups to helping corporate clients com- constantly realigning buSinesses. Environ' I Under a RepubUcan-controUed Con_specialized companies .on one ~d and a ply with. en,vironmental rules, are. facing. mental Resources, Cor instance, is expand- gress, the flow of new laws and regula- group of mega ~mpaßles offer!ng a smor- tough timès.~The industry is being,sWept, .__ ing its ability towurk on the construction tibns, which came out almost weekJy dur- gasbord of enVIronmental sen1ces_on the by_consolidations and layoffs: "'i.~..¡' ~,side of cleanup 'projects, whi~ is doing in( the 198Os, guaranteeing work for 0 er. Midsize companies~~-being >Even att~ndance atlndust¡y:cõnCer- __7, better than the,side of the busmess that hordes of consultants, has slowed to a n,a~ped up to create ~?œI'nS;·.":ith S200 ences is oft,~~We've seen a 50% decline in devel~ps the remediation plans..~t w!'S the trickle. Moreover, government spending mlll1o~ or mare ~ sales. Compames Deed ~"-~.""";' attendance 'at:some of ;our 'worksbops,". mgside that ~ed ~ be bõL .~ oll·things such as Superfund cleanups is that kind of CC}tical mass to ~'8.ble to . .' says John,Tborner, exeCutive director. of·~ _ Environmental ,:' R~~;!'.;is . also nò", in doubt as Congress looks for ways to compe~~. especlaUY,for governJl1ent con- the Air&Waste ManagementAssociation.:'~\ _ am~ng the compames I~klng ?Verseas for shrink budget deficits and reduce burdens tracts, Ms. BerkoWItz says. ,t~. a professIonal group, ,tor'~nvi~.nmental -, ..busln~. Growth in. m~y fore,l¡rD. ~ets of. regulations on private industry. One-Stop Shops .f . !'1an~~ that hosts re~~~l~g.~m- Î:- mains _sttong,. p,articularly. ~n: ~~ Far l"The government slowdown has rip- Ms. Berkowitz, whose company' does an lRars:¡_~.'; }:.:~:.';- "~..;.':;> .;. ~t. sa~ Mr. Woodruff, Enviró.l~¡µ~ntal plfc! through the whole private side of the annual state-of-the:-industry report. fig- 'Wa!~,,of the future' (t~···~· : ~;~ ~ ~'" ~urces d~ ,.abou~__2O"I~ of Its :~~lßess b~ines~ as we~1. as fu:ms [which fonnerly ~ the domestic market grew less than :Tbe_ tough cúmate is foréing companies ~eas'; but ,e~fÍ~at to ~~ one:- w,re qwck to hIre outside consultantsJ now 5% In 1995, but most of that was concen- .. . or,moreW1 veyears."" j , Otto h tdirecti th f di d trated.·· t f . h At th .,to·iJuI.bvate.:Onehotarea-forgrowth,Cor i:~,M ': '-~aI::~ to YI¥ .seev.:a, on eun ngan '. InJus a ewmces. '. .esame ;"'instance,As òùtsOurcing~'GalsOD':CórP., "....: any_.comp~m~. so._, g _ regu1atlon~lgo m,"says Steve Maxwell, !"e. she fou,nd the work force ~:c:ompa- ~·b'ased.:;;úi~SyraC~0--:-N~Y-i·::has}"~ded .¡:~e;~e::~:t.b':~;~~. ed!,?r of an Industry newsletter called the mes she studied shrank about 5~S~ workers In·the past yea!' to strengthen its based in Los Angeles saw its government æ;nmentaJ Benchmarker. "The larger finns arelooklngtooxpand ability to manage environmental services business balloon fro~ 30% to 10% _of its' The industry is also suffering from the services they offer to essentially create '"..".- ,,- -" -~" r··-'- ",',-- .'" ""---.~ -''''''''''' ...- company s laboralory serVICes ormomtor- hal regulations are DO longer going to be m .fndeed, one of the results of downsi,· otZweIgWblte & Associates fne. inNatlck. ing its environmental compliance. the driving force in this industry," says i~,.has been the .creation of ne.w,œmpa- Mass., a œ!"pany that helps environme~7 Another example is me Cos., an engi- Robert Sheh the company's president and nH~S, as people laid off from theIr JObs set tal compames merge and œmplete acqUl- neering and consulting company in West- chief executÌve officer. "The driver in the up;_their own shops. Donald Carlton, chief sitions. "The smaller finns are either port, Conn. It offers a service in which it future is going to be economic solutions." : eXfC~tîve of!icer of Radian International trying to expa~d thei~ geographi<:a! reach l1uys a 'co~pan,Y's waste:-wat~r treatment ,That's whyrrç is focusing on what Mr. ., In Austin, .Texas. says many govern- bas~d on the.lC part~~ular expertise. <Jr plant, rebuilds It. th~!11eases Itback to the Sbeh caJls~'partneiingrelationships" with m t labo~tones as well as de~ense COn- 100 g at selling out. _ company~·,~.. " .~ . ... ! corparations;'Under such contracts,:'rrc-, tr ~.hit by th~ recent slump m defense Meanwhile, figuring out what niches "Ttlis ~rea.lly the w~ve o~ the !uture,:' ,_takes ch;aI'ge of ~I aspects oCa cleanup;, s~~~g, also tned. to"get Into ~; busi- will boom remains difficult. Analysts have says Dr. VIncent Rocco, mc s Chl~~ exec· ':from· basic plannmg·to execuüon of .the. ness: AIl o!a sudden, he sa~. every- predicted a number of specialties would do ulive omcer. ." ~ '. work. The company recently belped Mobtl 1 a~d hiS dog was an enVIronmental well, bul Ihe b"'inesses oflen have lallen Paul Woodruff. president and chief ,Corp. clean up a refinery site:in Texas. . x ,_rl . short of expectations. For example, the executive officer of Environmental He- even going to regulators to .get them to ._ ilIiam McMuUen agrees there are too redevelopment of old industrial sites. sourœs Management Group, Exton, Pa.. . accept a cleanup plan that was just as m.· y companies chasing too few dollars. known as brownfields, was supposed to be contends "there's stiIJ good money to be :effective but far less costly than Mobil Asi'president of S.M. StoUer Corp., a a major growth area for the industry. Butit made" in the field. But unlike the 1980s, originaUy thought necessary. And like "'technical services company in Boulder. has yet to boait' ~;. /z)~Gß ...-- 0/[(10 ~ .-- . ^ ~ lOS,j ~ .~cÞ . J ~rr,l (!'/~ . -~~ ,8 - I -.---,_. -. Attachment C BECA Staff Turnover Chart --.....- .--..-.......-......-.....-.....-....-..,.....,-.....-,--..--.-.-..--...'-------- ¡;:: r,.. \- /' ;::1' I / ..... / '- t /~ ;;¡: ~ ~ .IÎ'- ~ > ~ \- M oj . ~ 2 ~ ~ 0 ~ OJ ~ -- I- tJ) _ N ~ ~ / ~ " ¿, ..... ..c: 0\ ~..... <t :;:j;>, ~ ~ ~ ~... 0 o ..,.. oj ~ ,~ ü :;> " 0 OJ'" - QJ ~ ,,-,Cd ~ ¡:: .,...¡ S .u H N CIj .....- QJ Q) 0 ...... ~ ?H ~~ OJ~ '" ~~ ~ ~ I ~ ~ ~ lj \-- -- "" ..... o "2 ~ '" ..c: ctI tI) t: "'C "'" .0 "..." "',... ,,'" OJ '-' ~! '" '" &. u <!:. 0'\ Õ p:: ~e CIj>' > t E-i °u ctI \0 0 0.-1 ..¡ ~ 0 ..¡ 2- 00 ::E:>, ~s ¡:r.¡ ... '" " f-< ~ '" ...... ~ 0 ~ -.. QJ p., ...0 I- '''''' tà ~ §= 0> 3 :s ~f-< ........ _ \0 ....... /' E- ~ , ..c: þ..¡ \0 OJ 0.0 µ., ;>, 0 ~ '" ~...... tfJ ~ ¡:: ~ 00 -B l( ~ 0 ] ~= ~O> \0 ..¡ OJ ........ ~ of-< ':'..... -- ...,- "'Ì" () J-f a :I: ..c: ... \0 CJ I,.. .- ~;>, '" -- ~ M ~ 3 \0 & ~ 0'\ S· 0 --", A N -- f-< '" ...1 O\.u N -.. 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Attachment D BECA Organizational Chart ,......... _...~_.-. --,_.,._.._-~-- ATTACHMENT A Existing Organizational Structure BECA Administration -Director -Admin. Assistant -Contract Manager -- BETRC INCUBATOR (Southwestern College Contract) . -Manàger -Manager -Admin. Assistant -Business Dev. Specialist -Cross Border Specialist -Envirn. Management Specialist -Senior Project Clerk -Project Clerk Proposed Organizational Structure BECA Administration -Director -Contract Manager -Admin. Assistant -----.::::::::: Tenant Business Development Assistance INCUBATOR Technology Transfer (Reduced Southwestern College Contract) -- -Manager Program -Business Development Specialist -Admin. Assistant (UCSD Contract) -Senior Project Clerk -Contract Employees *NOTE: Italicized employees are non-city employees (contractor employees). D-1 ....,.- --~._-_..__.._--_._.._-- -- _ _.____ .u ._ Attachment E Annual Report for FY 1995/96 and 1st Quarter Report for FY 1996/97 -_..",- ,.. _.... .-.._---,._._----~- DISTRIBUTED VIA FEBRUARY 18, 1997 PACKET ( ~~-0J . . "",". ~ - '. . . " ~. .., ..--.----, : f I ¡ C -" 3 / i '. , . J ~" I f('~- INFORMATION MEMORANDUM I : ....- :~)0{ I ¡ I February 1.1, 1J7 , I <"- , TO: Th' Honornbl, Mo,", ond Ch, Co""~ i. VIA: John D. Goss, City Manager~ ~ FROM: Chris Salomone, Community DeVelOpme-:Director(- (. SUBJECT: BECA Report to the Economic Development Administration Attached please find for your information the City's Border Environmental Commerce Alliance (BECA) Quarterly Report for the period of July 1, 1996 - September 30, 1996 and the FY 95-96 BECA Annual Report submittals to the Economic Development Administration. -- S) M:\HOME\CQMMDEV\INFQMEMO\ qt2(February 11, 1997 (3:30pm)] £-1 -~.._,----_.,. ._...,__~,...., ,..u_.__ _. '0 '._... ........_.___ .._._.,..._...... DISTRIBUTED VIA FEBRUARY 18, 1997 PACKET THE BORDER ENVIRONMENTAL COMMERCE ALLIANCE (BECA) AWARD # 07-49-04062 . 1996 Annual Report Submitted By: Cberyl L. Dye, Economic Development Manager £--- ---.-.'.-.- ..-.-_._.+._"'-"'--~----- , ' BORDER ENVIRONMENTAL COMMERCE ALLIANCE EDA Annual Report 7/01/95 to 6/30/96 . Award #07·49·04062 Background AWARD The City of Chula Vista was awarded a U.S. Department of Commerce, Economic Development Administration (EDA) grant on February 15, 1995. This $2,000,000 defense conversion grant was awarded to the City to implement the Border Environmental Commerce Alliance (BECA) Program including the two main initiatives, the Border Environmental Business Cluster (BEBC) and the Border Environmental Technology Resource Center (BETRC). MISSION The BECA program, a sister program to the San Diego Economic Conversion Program, was designed to: 1) assist and promote environmental product and service businesses, 2) support the development and commercialization of environmentally sustainable technologies, and 3) attract and incentivize companies utilizing environmentally friendly processes through successful public./private regionally-based partnerships. BECA was also designed to advance D.S./Mexico border area economic development and environmental protection through these cutting-edge business assistance initiatives. PARTNERS BECA has also received funding and support from the Califomia Trade and Commerce Agency, the James Irvine Foundation, and the City ofChula Vista, the founding sponsor. The 18,000 square foot BECA facility located at 477 Marina Parkway on the Rohr campus in Chula Vista was donated by Rohr Incorporated and the San Diego Port District. Among other BECA partners are the California Environmental Protection Agency, California Energy Commission, the National Environmental Technology Leadership Challenge, San Diego Economic Development Corporation, California Environmental Business Council, Western Maquiladora Trade Association, COPARMEX, San Diego World Trade Center, the Center for Applied Competitive Technologies, the San Diego Regional Technology Alliance, the Chula Vista Economic Development Commission, and the Chula Vista Chamber of Commerce. £-3 1 PROGRAM ACCOMPLISHMENTS The BECA program did not officially commence until July I, 1995 because the City of Chula Vista requested a no-cost time extension to complete necessary "start up" components. Once the program began, numerous milestones were accomplished throughout the year. Highlights include the development of the physicallocatioD, staff recruitment, a sub-recipient agreement, establishment of a BECA Advisory Board, procurement of necessary equipment, substantial public outreach and partnership development, major progress in recruiting incubator tenants and organizing tenant services, implementation of the Border Environmental Technology Resource Center, and hosting its first corporate training event. Necessary budget, administrative, and accounting procedures to manage the program were also established. Details of the year's accomplishments follow below. ADMINISTRA TION Renovation of the BECA Facility One of the BECA partners, Rohr Incorporated, provided the program with a 18,000 square foot building to house the two initiatives, the Border Environmental Business Cluster (BEBC) and Border Environmental Technology Resource Center (BETRC). Rohr leased the building to the City for a total cost of $1 (one dollar) for the entire 34 month grant period. The City renovated 10,000 square feet of the facility (Phase I), which was ready for occupancy July I, 1995. Phase I can accommodate 17 start-up environmental business tenants and the BETRC. Available square footage runs from 150 to 800 square feet. The facility features common conference rooms, flexible space, a training/seminar room, copy and fax machines, as well as a lunch/break room. The remaining portion of the Rohr building (Phase II) was scheduled to be completely rehabilitated for occupancy by March 1997. However, in the last few months another possible facility opportunity, outlined below, arose and has been explored. Moving the BECA Facility Staff explored with Rohr the possibility of expanding the program's use of the Rohr facilities. The impetus for these discussions was the desire to have wet and dry laboratory areas and some light industrial space available to tenants. It was felt that since many environmental companies require these types of facilities, the program would be able to attract and serve more companies if these facilities were available. A building on the Rohr campus was identified as a possible relocation site for the incubator. The building consists of approximately 82,000 ~quare feet, including 6,000 square feet of laboratory space, and potential for light industrial uses. It consists of two floors, each roughly 40,000 square feet, with the lab facilities on the first floor. The existing layout appears reasonably well-suited for the BECA program, with a variety of enclosed offices, conference and training rooms, and some cubicle areas available. Evaluation and planning involved BECA occupying most of the first floor (approximately 35,000 square feet, including the labs), which would meet all of the incubator's anticipated facility needs. Discussions with Rohr are ongoing, and a decision on whether to expand into the new building or continue rehabilitating the existing building was to be made in the next three months. ~ £-4 '.' '. 2 ... ", , . .- ~ - __d__'''' --~-_.._.,_..... -.-- Staff Recruitment Immediately after start up a recruitment and hiring process was begun to fill the BECA, BEBC and BETRC staff positions. Recruitment included advertisements in the San Diego Union Tribune, Los Angeles Times, La Prensa, Voice and Viewpoint, Job-Trak (California State University job listing service), and the Community College job listing service. Advertisements were also sent to 60 service agencies including the Job Corps, several Chamber of Commerce offices, the Urban League, the Veterans Administration, and other municipal personnel offices. For each position, an interview panel consisting of both public and private sector representatives was utilized to screen applicants. During the year, the following positions were filled: BECA: Director, Contract Manger, and Administrative Assistant; BEBC: Manager and Office Manager/Administrative Assistant; BETRC: Manager, Senior Project Clerk, Project Clerk, Environmental Management Specialist, Environmental Business Development Specialist, and Cross- Border Marketing Specialist. The Environmental Management Specialist and Cross Border Environmental Marketing Specialist positions are partially funded through a California Trade and Commerce Defense Adjustment Matching grant. The BECA Administrative Assistant position was funded by the City of Chula Vista Community Development Block Grant. The City ofChula Vista Community Development staff assisted with the transition of overall BECA program responsibilities and continues to provide oversight and support to the program. Since the initial hiring of staff, the BECA Director, Geoff Bogart, resigned to accept a position related to cross-border marketing, his professional area of expertise. Geoff was replaced on an acting basis by Jeanette Moorhouse, an environmental consultant who was a member ofthe BECA Advisory Board. The Contract Manager resigned to accept a promotion to the City of San Diego's Planning Department. A recruitment process was initiated for pennanent replacements. Agreements with Sub-recipients In June 1995, the agreement between the City of Chula Vista and Southwestern College to administer the BETRC was fmalized and executed. Southwestern began the administration of the BETRC contract on July 1, 1995. The agreement outlines EDA compliance requirements, perfonnance milestones, data collection requirements, and the required fonnat for quarterly and annual reports. This year BETRC has provided four quarterly reports, a 1996 annual report, the required perfonnance milestones documentation, and all required financial reports. The BETRC's program accomplishments are detailed later in the report. On August 22, 1995, the City of Chula Vista City Council amended its pre-EDA Memorandum of Understanding (MOD) with the California Business Incubator Network (CBIN). The pre-EDA MOU did not confonn with the EDA award requirements that established the BEBC as a City program. The amended MOU reflected the EDA grant to the City, clarifies the City's role as the direct administrator of the BEBC, and narrowed CBIN's contract responsibilities to private fund- raising. The CBIN staff employed to manage the BEBC incubator were then hired by the City. Interim and Pennanent Advisory Boards limits One ofthe most critical needs in the program's start up was to establish an advisory board to provide guidance and direction to the B~ÇA~~o,~ ". ven member BECA Interim Advisory ',-., ~....., ;.: ," .... . .1....... £-s- Board was formed and approved by the Chula Vista City Council on August 22, 1995. The Interim Board provided immediate guidance to the BECA program and has evolved into the permanent advisory board. The Advisory Board is comprised of the following BECA partners: Rohr, Incorporated, Environmental Business International, Science Applications International Corporation, San Diego Unified Port Commission, San Diego Gas & Electric, Greater San Diego Chamber of Commerce, U.S./Mexico Border Progress Foundation, University of California San Diego, South County Economic Development Council, San Diego Regional Technology Alliance, San Diego County Department of Environmental HealthlPollution Prevention, and the ChuIa Vista City Council. Throughout the year, the Advisory Board provided technical, organizational, and planning assistance to the program. Procurement of Equipment & SupJ'lies To successfully implement the BECA program, the procurement of "tools" including computers, printers, fax and copy machines, furniture and office supplies was critical. Staff began immediately working with the City's Purchasing Department began to procure the needed supplies and equipment. A computer task force was established to develop a productive and cost-effective computer system. Hardware and software specifications were developed, and a formal bidding process was initiated and completed. The computers were delivered in late September and, with the assistance of the City's Management and Information Systems Department, were fully operational in mid- October. Internet access and other fee-based databases were obtained, allowing BETRC staff to begin utilizing e-mail and other electronic file transfer capabilities. The task force also generated specifications for the program's copying and faxing equipment. Incubator programs throughout California were contacted regarding their tenant/client copying and faxing services and general office equipment utilization. After evaluating this information and conducting a cost analysis, two copiers were lease/purchased and two fax machines were purchased, using the prescribed bid process. Staff Development BECA, BETRC, and BEBC staff participated in computer training exercises to maximize their productivity on the equipment. These training sessions included WordPerfect 6. I, the Internet, and on-line database systems, including Westlaw on-line environmental services, the Bureau of National Affairs environmental and safety on-line services, and Lexis-Nexis on-line services. MARKETING & PUBLIC OUTREACH This year BECA has undertaken a number of public relations and marketing efforts promoting the program to the general public, potential clients and tenants. Listed below are some of the major undertakings. BECA Grand Opening & Environmental Resource Fair Over 500 people, representing the business community, the environmental industry, and state and local officials from both sides of the U.S./Mexico border, attended the BECA Grand Opening Ceremony and Open HouseÆnvironmental Resource Fair on November 15, 1995. The Grand Opening ceremony, held at the new corporate Rohr headquarters, was hosted by Chula Vista Mayor .. e-G, ~,.". 4 -------....-.--.... ----" Shirley Horton and members of the City Council. Lieutenant Governor Gray Davis was the keynote speaker. Other speakers included, Lee Grissom, Office of Governor Wilson; Chris Hoben, Deputy Secretary of California Trade and Commerce Agency; James Allen, Chief of the Office of Pollution Prevention; CalÆP A and Richard Kiy, Vice-President from Science Applications International Corporation (SAlC). Th following BECA sponsors and partners were recognized for their con1ributions: City of San Diego Economic Development Administration, County of San Diego, Governor and Lt. Governor's offices, San Diego Port Dis1rict, Rohr, and San Diego Gas & Elec1ric. An informal open house followed the ceremony at the BECA building. BEBC tenant displays and an environmental technology fair highlighting emerging technology transfer opportunities were featured. Due to the opening, one new tenant was recruited and accepted, over ten new clients were assisted, and a number of potential tenants and clients were identified. Television and print media coverage during and following the event helped build the BECA program's identity, both locally and statewide. Logo Development BECA staff developed an official logo for the BECA program. Because of its unique mission and goal to be a non-profit organization in the near future, BECA needed to have its own public relations identity. The logo captures the essence of the major themes of the BECA program: the environment, technology, and the U.S./Mexico border relationship. Aqueous Expo On September 21,1995, the BECA program co-sponsored an environmental expo with CalEPA to promote the use ofnon-CFC based solvents to clean machines and related parts. Held at the BECA building, the "Aqueous Expo" brought together product vendors, indus1rial users, and government agencies to learn about non-ozone depleting solvents on the market for industrial applications. Conference Presentations BECA and Community Development staff made presentations at numerous conferences and gatherings to promote the program. Presentations for the reporting period were made to: the Indus1rial Environmental Association, U.S. Department of Commerce Bureau of Exports, Assemblywoman Denise Moreno Ducheny and Assemblyman Steve Baldwin; the Mayor's Corporate Outreach Breakfast, the "Smart Community Workshop," and the San Diego/Tijuana Waste Management Conference. Environmental technology briefings were held for senior level Mexican government officials, including Dr. Herminio Blanco, Secretary of Commerce and Jesus Treviño, Assistant Secretary of State. The BECA Director spoke on cross-border environmental business opportunities during the "Renew America National Teleconference." BECA staff supported an environmental technology meeting in Tijuana, Mexico sponsored by the U.S. Department of Commerce, to assist California environmental technology companies export products and services to Mexico. As a result of this effort, two applications were received for acceptance into the incubator. BECA and the Department of Commerce co-sponsored a workshop on processing, certifying, and funding environmental infrastructure projects in the U.S. and Mexico by the Border Environment Cooperation Commission and the North American Development Banle é-7 JOBS SA VED/CREA TED/RET AINED It is important to keep in mind that the incubator concept, and small business technical assistance in general, is designed to serve as a long term economic development tool. Because of the volatile nature of start-up companies, job growth and retention impacts can only be accurately measured over a period of several years. However, at the end of the year a survey of the incubator tenants indicated that a total of 35 persons were employed by tenant companies. From March to the end of the year, 21 new employees alone were added to the incubator tenants' payrolls. These numbers include employees actually housed at the incubator, as well as those employed at "off-site" locations in the San Diego County vicinity. PARTNERSHIP DEVELOPMENT MOU with the City of San Diego On December 19, 1995, the City ofChula Vista City Council approved the MOU with the City of San Diego and the San Diego Technology Council. As a condition of the Chula Vista EDA grant, the executed MOU delineates the responsibilities of coordinating the activities of the San Diego Defense Conversion Program to avoid duplication, leverage available resources, and maximize program impacts. The MOU specifically addresses establishing communication and networking mechanisms, coordinating service referrals, sharing of computer and electronic resources, conducting joint outreach and promotions, and securing representation on advisory boards. Staff from the City of Chula Vista (BECA) and the City of San Diego continue to meet to discuss the implementation of our respective programs. Mayor's COI:porate Outreach Breakfast Mayor Shirley Horton hosted a corporate outreach breakfast at Jake's South Bay on September 8, 1995. The BECA program was introduced to the business community, to cultivate partnerships and sponsorships. Approximately 40 business leaders attended the event and several toured the BEBC following the breakfast. As a result of the breakfast, San Diego Gas & Electric joined the ranks of BECA corporate sponsors. A resource partner and a member of the BECA Advisory Board, SDG&E presented a $2,500 check to Mayor Horton for the BECA program in October, 1995. Fundswere used to build and install an illuminated building sign to further increase BECA's visibility in the area. National Environmental Technology Leadership Challenge This national campaign was designed to challenge U.S. businesses and communities to put environmental technologies to use. Sponsoring the Challenge was the National Fish and Wildlife Foundation, the Church and Dwight Company, and a coalition of over 30 technology providers, potential users, environmental organizations, local communities, and academic institutions. July 11,1995, the City Council accepted an invitation on behalf of the City and BECA to be Founding Leaders of the "National Environmental Technology Leadership Challenge." In September the City ofChula Vista was selected as one oHour U.S. cities (with Orlando, Portland, and Baltimore) to be an initial "launch" site for the Challenge program. On February 8, ~ . -~ .:¡ £...V "'""_._.____.._._.___m.__ 1996, over three hundred people ITom the business, government and academic communities throughout Southern California and Northern Mexico attended the "launch" held at the Chula Vista Nature Center. Special guests included: William Ginsberg, Chief of Staff to the Secretary of Commerce; John Atcheson, U.S. Department of Energy; Barbara Cairns, Deputy Director of the Fish and Wildlife Foundation, and a host of industry leaders ITom both sides of the border who "took the challenge." Companies such as Honeywell, SANYO, Rohr ,and Sony were among the key corporations "taking the challenge", which included becoming a BECA sponsor. The launch provided tremendous exposure for BECA and the incubator companies participating in the resource fair. Publicity received ITom the event led to the securing of new environmental companies for the incubator and several clients for the BETRC. Potential Economic Development Partnership Coinciding with the Rohr facility discussions, BECA explored partnering with several related public organizations as part of a major new economic development effort. The concept involves co- locating several related economic development organizations, including BECA, in the same facility. Groups would pool and leverage their existing resources including technical staff, conference and training rooms, library materials, and equipment. It could create an opportunity for a greatly expanded public-private partnership dedicated to the economic prosperity ofthe region. Additional private sector partners, such as a small business lending institution, or a major corporate anchor tenant, or even a university-related research group, would be recruited to complement these public organizations. BECA and the BEBC could profit and flourish as a result of being located in a major economic development cluster. This potential partnership was studied and evaluated as part of the facility study and a decision on its viability was to be made within three to four months after the end of this reporting period. £-'1 , . BORDER ENVIRONMENTAL BUSINESS CLUSTER (BEBC) The Border Environmental Business Cluster (BEBC), established July 10, 1996, focused this year on the following tasks and goals: (I) developing and organizing the BECA facility; (2) recruiting incubator tenants; and, (3) organizing tenant services. BECA's progress is detailed below. Facility Organization and Development At the beginning of the year, a substantial amount of staff time was devoted to the initial organization and development of the BECA facility. The Rohr donated building was brought up to various fire and safety codes. Furniture was acquired, repaired, and arranged to turn an empty warehouse into a suite of offices. General internal and external cleanup prepared the building and grounds for occupancy. Telephone, mail/parcel services, janitorial, and maintenance services were established. The BEBC staff, in conjunction with the other BECA staff, cultivated and designed the facility's "environmental library" which is a focal point for many facets of the BECA program. A library corrunittee was established to develop a list of the most critical needed resources. Technicaljournals and reports, industry newsletters and publications, market research reports (both U.S. and Mexico), and numerous government publications and resources were acquired. Materials encompass the areas of pollution prevention, solid waste minimization, air and water pollution control, and local, state, and federal agency programs. All materials are available to BEBC tenants, BETRC clients, and the BECA staff. Facility Policy and Procedures Manual The BEBC staffhas developed a Facilities Policy and Procedures manual. Activities addressed include billing, accounting, maintenance procedures, security and safety guidelines, inventory requirements, tenant recruiting and screening procedures, services, client intake and tracking procedures, and personnel and other human resource requirements. This manual will continue to evolve throughout the duration of the program. Tenant Recruitment/Screening Following the selection and development of a broad array of recruitment materials, including a brochure and a tenant application form, active recruiting ofBEBC tenants took place. Tenant recruiting was a high priority and continuous for the BEBC throughout the year. Recruitment included direct mailings targeted at new entrepreneurs, telemarketing, and participating in numerous small business training seminars. Networking was also accomplis.hed with other local business development organizations, such as the Small Business Development Center at Southwestern College, the San Diego Business Partners, the San Diego Regional Business Incubation Alliance, and the Chula Vista and Greater San Diego Chambers of Commerce. To facilitate and enhance the incubator's probability of success, quantitative and qualitative tenant application/selection guidelines and procedures were established and followed. This process has proved successful, as evidenced by the incubator's tenant dropout rate of only 15%. In addition, an incubator goal was to have a cross section of environmental technologies represented in the incubator. This year the goal was accomplished as reflected by the incubator's tenant mix outlined in the Current Tenant Status section of this report. .... £-10 m_""··._····__···_··___··__ Tenant Services Working together, the BEBC and BETRC staffs developed a complete package of tenant and client services. Incubator programs throughout the region, state, and nation were reviewed and analyzed. The San Diego Regional Business Incubation Alliance (SDRBIA), The California Business Incubation Network (CBIN), and The National Business Incubation Association (NBIA) helped the staff identify the "best practices" from several hundred different incubators around the country. By taking this systematic review, the staff was able to target program resources and produce an innovative and effective BECA tenant/client service package. Micro Loan Proliram (MLP) One of the major accomplishments for the Cluster this year was the creation of the BECA Micro Loan Program (MLP). This program encompasses a unique partnership among the BECAlCity of Chula Vista, the Bankers Community Development Corporation (CDC), and the CDC Small Business Finance Corporation. This partnership is designed to utilize the complementary experience and expertise of each organization. Specifically, the Bankers CDC and the CDC Small Business Finance Corporation provides expertise in the areas of small business lending (including loan packaging and credit analysis), and the City/BECA provides a 50% loan guarantee to the tenant borrowers. The City ofChula Vista allocated $100,000 of Community Development Block Grant (CBDG) funds to capitalize the guarantee program. Based upon the fifty percent guarantee, the program allows for up to $200,000 in total loans to be financed at anyone time. Companies who have been Cluster tenants for at least three months are eligible to apply for loans up to $70,000 (or up to $50,000 for companies which have been in business less than 1 year). Typical loan amounts will range from $10,000 to $20,000. These loans are available for working capital, equipment, and other fixtures which are directly tied to existing contracts or receivables of the borrowing company. A Chula Vista loan review committee was appointed by the City's Director of Community Development. These appointments resulted from staff consultations with a variety of sources including the Chula Vista Economic Development Commission, the Bankers CDC, the CDC Small Business Finance Corporation, ACCION San Diego, the Chula Vista Chamber of Commerce, and a number of small business lenders. These committee representatives provide the program with a strong mix of lending expertise, and in-depth experience with small and international business fmancing. Insurance Program BEBC tenants are able to acquire low cost group rates on health insurance through Blue Shield of California, via the auspices of the California Business Incubation Network (CBIN) with which BEBC is affiliated. Current Tenant Status By the end of the year, the incubator had accepted its 13th tenant, increasing the incubator occupancy rate to 75 percent. The incubator tenants represent a broad spectrum of sectors within the envirorunental industry, including technology-intensive products, geotechnical services, envirorunental project consulting, recycling, envirorunental product distribution, and laboratory testing services, among others. These companies have begun to form the underpinnings of a true focal point of business activity within the region's envirorunental industry. The following is the tenant summary information as of June 30, 1996. ..... £-11 TENANT SUMMARY AS OF JUNE 30, 1996 · AC Southwest Materials is involved in the recycling and reprocessing of plastic materials for end-users on both sides of the US/Mexico Border, as well as in China. In particular, the company has found markets for all types plastics (recycle categories 1 through 7). · AquaSystems sells water purification systems based upon reverse osmosis technology and drinking water systems which convert ambient air humidity into purified water. · Aztec Reclamation and Recovery, Incorporated specializes in recycling and cross-border transportation and disposal of hazardous/non-hazardous waste. · Biozyme International of California sells a variety of environmentally-sensitive cleaning products for household, veterinary, and industrial applications. · California Metals and Electronics is a metals and electronics recycling business that is attempting to break into the Mexican market. · Environmental Scientific Products is a minority-owned distributor of environmental and safety products including HazMat Kits, specialty chemicals, and environmentally-benign asphalt alternatives. · Environmental Technology of California (Envirotech) sells and services the TF Purifier oil filtration system. This innovative system was the first technology to be certified by CAUEPA's Environmental Technology Certification program. · Metallic Power, Inc., a spin-off from Science Applications International Corporation (SAlC), is developing a rapidly-rechargeable zero-emission power source. The technology, originally developed for defense applications, is now being applied by the company to a variety of commercial applications including electric vehicles and small mobile power generators. · ON SITE Environmental Laboratories, Inc., is a minority and woman owned business specializing in providing real-time analytical data using a variety of mobile environmental testing platforms. · Rosscore, Inc. specializes in marine, freshwater, and land environmental/geotechnical soil and sediment sampling. The company utilizes a unique and proprietary vibrocoring system, as well as other rotary drilling and percussion techniques. · South Bay Oil Project is a program funded by the California Integrated Waste Management Board and run by the Urban Corps of San Diego. The project has contracts with a number of local government agencies and private companies for collection, recycling, and proper disposal of used oil, and other recycling products. · Martha Valdes and Associates is a minority women-owned environmental consulting firm that specializes in solid waste issues along the US/California - Mexico border. Currently, the company has contracts with the City of San Diego and several not-for-profit organizations. · World Envirotech specializes in the development of innovative biofiltration of systems that use microorganisms to eliminate hazardous and toxic wastes in the vapor phase. The systems are applicable in a variety of areas including soil remediation cleanups, petrochemical industry and municipal waste disposal, and industrial odor control. ",,- E -/2- . .._·.-__._·n __._.____._______...._ Tenant Success Stories As anticipated, the tenants are making progress toward their business goals. W1úle the degree of success has been varied, and certainly some companies have encountered some initia! start-up pains, there are a significant number of tenant highlights: · Metallic Power, Inc. Metallic Power, one of the first incubator tenants, began work on a $189,000 contract ITom the South Coast Air Quality Management District (SCAQMD) using the company's rapidly-refuelable metal-air energy cell technology. The company will begin a complimentary contract with the City ofChula Vista (sponsored through the Ca!ifomia Energy Commission) to demonstrate a zero-emissions vehicle that utilizes this technology. The company was a!so awarded a $70,000 matching grant ITom the San Diego Regiona! . Technology Alliance (RTA) for work in this area. Moreover, the company has signed a letter of intent with a private investor for up to a $1 million investment during the coming year. · World Envirotech Services and Technologies, Inc. World Envirotech completed a major six-month research contract for British Columbia Hydro in April. This research is expected to lead to improved methods for reducing the cost of soil and groundwater cleanups. · Aztec Reclamation & Recovery, Inc. Aztec recently secured several new recycling and waste management contracts. These new contracts include on-going work for Aztec America, Daewon Machine Industries, Fiber Resources, Reciclados California, Samsung, and Schlage Lock Company. · Environmental Technology of California (ETC). ETC obtained a $25,000 demonstration order for their TF Purifiner oil filtration system ITom Solar Turbines, a major manufacturer in San Diego. ETC also has initiated demonstration programs with the 7-UjJ Bottling Company in Los Angeles for their trucking fleet, and with Mashburn Disposal for use in their hydraulic systems. · Rosscore, Inc. Rosscore recently completed work on its first major project in Charleston, SC, using its unique marine core-sampling equipment and geotechnica! services. The company is now working to obtain additiona! contracts in Charleston and in Newark, New Jersey. The company has already begun mobilizing for severa! other sma!ler geotechnica! contracts on the East Coast. · ONSITE Environmental Laboratories, Inc. ONSlTE has been utilizing the services of the BETRC to develop its cross-border venture, ONSlTE Laboratories de Mexico, S.A. de C.V. This company offshoot will focus on providing stationary and mobile environmental laboratory testing services for the Mexican market. ONSITE is also negotiating a new contact with PEMEX, the state-owned oil company in Mexico. £-/3 11 Summarv of Current Business Statistics A survey of the tenants business statistics as of June 30, 1996 is provided below. Type of Business: Stage of Business/Date Established: ..1.!L- Corporation Pre-formation -L Sole Proprietorship ----L 0 to 6 months _ Partnership ----L 6 to 12 months _ Limited Liability Corporation ~ 1 to 2 years _ Other (please Specify -L2 to 5 years ) Arca of Business Represented: -L Research and Development -L Laboratory Services -----X..- Technology Manufacturer --K.. MateriaJs Processor _Engineering and Consulting Services -X- Distributor -----Ã- Transporter --Ã- Other Service Company -L ImportlExport ~EnvironmentaJ Interest Group _Sales/Marketing _Other (Please Specify ) Environmental Sectors Represented: .-L Air Pollution Prevention/Control .-L Waste Management ~ Water Trc:attnentIFiltration --L- Waste Minimization _Site AssessmentIRemediation Environmental Law -Ã.- Instrumentation and Equipment ---Ã- AJtemative Energy Technologies ~Recyc1ing _ Industrial Ecology ---Ã--Pollution Prevention Natural Resource Conservation ---Ã-- Analytica1lMonitoring ---Ã--Green Productsffechnologies _ Environmental Software/Computer Modeling - Other Defense Conversion Status: San Diego Region Status: ----L Company significantly impacted by defense downsizing -L Company was already located in San Diego County _Founder is a displaced defense worker -L Company was newly established in San Diego County ----L Company uses or plans to utilize defense or dual-use _Company was re-locating to San Diego County technology for commercial applications -..1-. Company was established as a new business division in San Diego _ Company employs significant percentage of displaced County defense workers Ethnic Background (provided on an optional basis): Ownership Status: Native American ---Í- Minority Owned ---...l.- African American -L Woman Owned Asian or Pacific Islander ----1- Disabled Veteran -L Caucasian _ Other Under represented Group ( ) ~ Hispanic Other ( ) * Note: These figures were compiled from the best infonnation available and were taken from data submitted by the tenants. £-1'1 --~._. _.---_._----~-- . Total Dumber of employees (includes owners) in San Diego County: 35 Among all people that work for the company (including the owners), number earning: _ Less than $5.00 per hour ~ Between $5.00 and $10.00 per hour --ª---Between $10.00 and $20.00 per hour --ª--- Over $20.00 per hour Level of Combined Business Activity: Approx. total sales or revenue during last 3 months: $ 923.725 Approx. net profits during last 3 months: $ 88.000 Total capitalization (amount invested in business to date): $ 1.2tO.000 Total exports (dollar amount) during last 3 months: ---.135.000 * Note: These figures were compiled trom the best infonnation available and taken from data submitted directly by the tenants. Only ten of the current tenants submitted the requested infonnation. Integration with BECA Partners Close fonnal and infonnal working relations have been established with BECA partners in order to offer a fully integrated package of services for the region. Cooperation with the San Diego Technology Council and the High Technology Resource Center has taken place to integrate services and intensifY cross-referral efforts. BECA has actively sought relations with the San Diego Software Resource Center, the San Diego Super Computer Center, the SouthWest Technology Transfer Center, the Naval Research and Development Center (NRaD), and the UCSD Office of Technology Transfer. These relationships have helped foster the commercialization of promising technologies developed locally. The possibility of occupying another Rohr building (discussed under BECA Facility Development) is developing into a major new strategic partnership opportunity. The BEBC worked closely with BECA and Rohr to examine the feasibility of expanding the incubator on the Rohr campus. Whether the incubator expands in-its current location or relocates to another Rohr building, the BEBC will continue to maintain its partnership with Rohr. Outreach! Other Partnering Activities During the year, the staff undertook numerous outreach and partnering activities. Marketing materials were widely distributed throughout the region to individuals, businesses, and other business assistance organizations. Staff promoted the program at conferences, seminars, and other related gatherings of entrepreneurs and service providers. Notable outreach ventures included the following: 1. Industrial Environmental Association (lEA). August 13-14, 1995. 2. Aqueous Solvent Expo. September 21,1995. 3. BECA Grand Opening Cer:~,o~l' November 15, 1995. . f!1}.'", £ -/ :s- 4. Environmental Leadership Challenge, February 8,1996. Staff Recruitment and Training Staffin¡¡: The BEBC staff participated in the selection of the BETRC's Business Development Specialist and Cross Border Marketing Specialist. A volunteer intern was hired from Southwestern College to assist both the BEBC staff and tenants on a part-time basis. Duties include researching various grant programs for environmental companies and perfonning clerical tasks. Training The BEBC Manager attended the NBIA Training Institute November 5-8,1995. The conference provided excellent incubator management training and an opportunity to network with approximately sixty incubator managers from across the country. Staff participated in numerous computer software training sessions, including WordPerfect 6.1, Quattro Pro, Paradox 5.0 for Windows, and Internet and Web Page design seminars £ -Ie. 14 ~._--_....._.....- BORDER ENVIRONMENTAL TECHNOLOGY RESOURCE CENTER (:BETRC) Narrative of Successes Successful Counselin~ of BETRC Clients AC South West Materials, a BEBC tenant, had a requirement for expensive machinery, necessary for shredding plastic during a recycling operation. Ms. Hodgers, the owner, was uncertain as to which machine would best suit her operation, a serious concern due to the capital outlay for purchasing the machinery. The necessity for technical assistance was further magnified by the need to purchase multiple machines, to be located at three different production sites. A meeting was scheduled between Ms. Hodgers and Wayne Lundberg, a member ofBETRC's consultant pool. During the meeting Ms. Hodgers and Wayne contacted sales engineers for several equipment manufacturers/distributors an¿ negotiated the technical requirements (capacity, throughput, power requirements, cost, etc.) over e telephone. Based on the information obtained and the coaching received from Wayne, Ms. Hodgers purchased equipment which, in her own words, "saved $14,000." World Envirotech, a BEBC tenant, is a manufacturer of bio-remediation systems. World Envirotech's corporate headquarters are located in Portland Oregon and as a BEBC tenant is able to maintain a satellite office in Southern California. World Envirotech's systems are primarily used for soil remediation following the removal of a leaking underground fuel storage tank. BETRC staff has played a major role introducing World Envirotech to various business contacts in the San Diego region including officials at the North Island Naval Installation. Additionally, BETRC staff assisted Mr. Yudelson, President of World Envirotech, with an opportunity to make a presentation to UCSD Connect's "Springboard" of financial, accounting and environmental executives in early April, '96. Springboard is an "invitation only" opportunity provided by CONNECT to entrepreneurs that are perceived to have a good chance of success. It is anticipated that opportunities for financial assistance and business partnerships will result from this experience and significantly assist the growth of this company. Environmental Scientific Products (ESP), a BEBC tenant, was awarded a $21,000 contract for supplying health and safety products for the San Diego City School District. ESP was referred by BETRC to the Contract Opportunities Center for the assistance that resulted in obtaining the government contract. Note: Environmental Scientific Products is also listed as T & L Distribution. Mel DaCosta CPA, one ofBETRC's outside consultants, spends one day a month onsite at the BETRC, counseling clients and BEBC tenants. This convenient service is provided to the clients and tenants to ensure their long term viability by carefully monitoring financial statements, reviewing accountinglbookkeeping systems and answering tax questions. Also worth noting, Mel was voted by the SBA as "Small Business Advocate for 1995" and the BETRC is fortunate to have him working with our clients. The BETRC is considering providing another similar onsite service for clients needing legal assistance. £-1, Successful Utilization of a Cooperative Agreement Southwestern College's Small Business Development and International Trade Center provided many interim client services for the BETRC in the early stages of operation, before the BETRC had developed its own service delivery systems. Just one of the valuable services provided by the SBD&ITC was supplying all outside consultants, at no cost to BETRC, while the BETRC's own Consulting Pool was being developed and approved. This assistance provided the BETRC with marketing, legal and technical counselors enabling the BETRC to assist clients and tenants when it would not have been able to do so. This relationship continues to be strong and consists of the co- sponsorship of many training seminars and the sharing of resources such as the Business Resource Center at Southwestern College. A cooperative agreement with the San Diego Regional Pennit Assistance Center has resulted in significant benefit to the BETRC. We often contact the Pennit Assistance Center for advice which we provide to our clients or we send clients directly to the Pennit Assistance Center where they receive priority one-on-one services. An example of the type of assistance received from the Regional Pennit Assistance Center occurred with EZRA, a company that distributes a device for reducing automobile pollution by catalyzing the fuel. When EZRA asked for marketing assistance BETRC strongly advised EZRA to initiate the process for obtaining the Ca1/EP A Environmental Technology Certification, to validate their marketing claims. EZRA asked BETRC to assist them with this matter. A call was made to the Regional Pennit Assistance Center requesting assistance with obtaining the Certification. They immediately provided the infonnation and a point of contact, expediting entry into the certification process for EZRA. The Pennit Assistance Center continues to be one of the BETRC's major supporters and has helped several other clients with the pennit process. Innovative Activities or Projects The AQJ1eous Solvents and Other Alternatives Expo (the Expo), held in the yard located adjacent to the BECA builditig on September 21,1995, was a large undertaking requiring a significant effort. The purpose of the Expo was to provide a hands-on event that introduces alternative materials and processes to current users of CFC (ozone depleting) solvents, a timely offering since regulations regarding ozone depleting substances became more s~ct on January 1, 1996. The Expo attracted exhibitors from throughout the United States including equipment manufacturers and chemical manufacturers. The audience included participants from as far away as Riverside County and Mexico. The BETRC also played a lead role in developing and delivering the Resourcerrechnolo~y Fair, provided for the public during the BECA Grand Opening event on November 15, 1995. BETRC provided coordination between the various exhibitors matching the exhibitor requirements to the BECA facility constraints. The Resource/Technology Fair was a major success with positive comments corning from all in attendance, including a gOÇ>d response from the various news media 't.......,. '-'-" E-/f - - ~.__.,. --.-.----.. _.. · organizations. Exhibitors included the BEBC tenants, BECA program partners, BETRC clients, state and local regulatory agencies and certain outside environmental service and equipment providers. Six (6) BETRC client applications were received and approved as a direct result of the Resourcerrechnology Fair. BETRC co-sponsored the State of California Border Environmental Trade Mission on February 23, 1996. It brought 35 people ITom approximately 25 California environmental companies to Tijuana to meet with government agencies and the private businesses regarding opportunities for doing business in Baja California. The event required the cooperation of several agencies and organizations including the Department of Commerce, Southwest Center for Environmental Research and Policy, Ca1ÆPA, and the California Trade and Commerce Agencies Offices of California-Mexico Affairs and Office of Export Development. All of the participating companies can be considered potential BETRC clients. One of the participants, Onsite Environmental Laboratories, a northern California company, has been accepted as a BEBC tenant. Achievements in Meeting Milestones Information Clearing House Significant progress was made in this area, with the procurement of a number of environmental periodicals, technical manuals and books, commercial catalogs and literature, legal documents and references, and more. Many of the documents and books were donated by associates of the BETRC staff members. The donations are important since most ofthe technical and environmental references are very expensive and the budget in this area is tight. The library has been increasing its collection of business and trade materials including EI Financiero, a daily fmancial newspaper for Mexico, the Twin Plant News, the San Diego Daily Transcript and the Thomas Registry of Products and Services. The Internet continues to be the primary electronic source of information. Resources on the Internet, such as the Commerce Business Daily, are routinely monitored for opportunities that may benefit clients of the BETRC. BETRC stajfhas developed a comprehensive listing ofInternet site addresses that will benefit clients and tenants including sources of information for: environmental business, search engines, legal help and financial guidance. This list is available to tenants and clients of the BETRC and will be updated as staff identifies new or additional web sites of interest. The BETRC added "Waste Cat" software to the library resources. This is a valuable aid when classifYing hazardous waste for transportation or disposal. Additional electronic databases include various resources made available ITom California Trade and Commerce, Cal EPA, The World Trade Center Association and the Department of Energy. BETRC '96-'97 budget was adjusted to add a category enabling software purchases for the library. £-1' A "Trade Board" was also added to the library. Trade materials, newspaper clippings, seminar and conference announcements, requests for bid (RFQ), etc. are posted on the boards for client and tenant review. The library also has a new literature rack that displays various materials wlúch are being distributed by the BETRC staff members. BETRC also provides a computer in the library for tenant use wlúch includes several software programs including word processors, spreadsheets, database and desktop publislúng software programs. The computer is equipped with CD-ROM and is connected to a HP LaserJet 4 Plus printer. The computer is available for tenant use on a first come, ftrst served basis. To maintain the computers operational availability the BETRC purchased anti-virus software to check disks before tenants use the computer. Direct Client Counseling The following infonnation summarizes data taken ITom reports generated by the Client Activity Tracking System (CATS), a database used by BETRC for maintaining on-line client infonnation. The system was installed and made operational during the fourth quarter. The CATS system streamlined the BETRC's ability to track and report activity on each client that the BETRC provides service to. Infonnation regarding client activity prior to the installation of the database was extracted ITom the client ftles and entered into the database. Copies of CATS reports are attached to this report providing detail to the summaries. (See the chart entitled "Direct Counseling ofBEBC Tenant.") During the period of July 1, 1995 to June 30,1996: 44 clients were counseled by the BETRC, including 14 tenants of the BEBC, totaling 775.26 counseling hours. Note this ftgure does not include the pro bono counseling or training seminars that were received by the BETRC during this period. For purposes of this report client/counseling activity is generally classifted into one of three areas, defmed according to the speciftc expertise possessed by the BETRC specialists: Business Development, Cross Border Marketing, or Environmental Management. Business Development This is the area where most of the counseling activity has occurred. Several factors have influenced tlús including: tenant needs, the Business Development Specialist was the first of the full time specialists positions to be ftlled, and this category includes most of the counseling activity conducted by the BETRC and BEBC managers and project clerks. Total hours of business development consulting = 552.21hrs. Direct Consulting by Business Development Specialist = 172.95 hrs. International trade and Latin America Market Development Total hours of cross border marketing consulting = 107.75 hrs. Direct consulting by the Cross Border Trade Specialist = 105.75 hrs. - .~:JI18 é-~ .,. ~-,,,'" ...._n_."___. _._.._____..___.___ · Environmental Management Assistance Total Hours of environmental management consulting = 115.3 hrs. Direct Counseling by the Environmental Management Specialist = 115.3 hrs. Technical AssistancelInnovation and Technology Transfer The Rohr "challenge" announced at the National Environmental Leadership Challenge in February 1996 involved the reduction or elimination of Hydrofluoric (HF) acid ITom a production process, a very difficult and technical "pollution prevention" project. Dr. Michael Templeton of Southwest Technology Transfer Center was contacted to access the Transfer Center's database of national laboratories and solicit assistance ITom the other national laboratories. A listing of individuals and institutions that could assist in providing solutions was obtained and ultimately eight (8) National Labs, Universities and/or other research organizations were contacted by BETRC. Oak Ridge National Laboratory responded and discussions were commenced with personnel at ORNL. A second solicitation was made to the labs, as a follow-up to our initial inquiry, and Sandia National Laboratory provided a positive response to this second inquiry (possibly as a result of our new cooperative agreement). We are presently pursuing this alternative response in the hope that we can solve the Rohr challenge and generate a solution that will positively affect the aerospace industry, as a whole. In addition to the above, an outside consultant with expertise in this area has been located. A technical proposal describing a laboratory study was prepared and submitted to Rohr for review. At the time of this report BETRC was awaiting a response ITom Rohr before taking any further action on this project. Environmental Regulatory Compliance Two workshop briefmgs on environmental regulations were presented during the fourth quarter. Each briefmg was four hours in duration and well received by all in attendance. The first briefing, "Future E.P.A. Regulations" was given by Mr. Rory Johnston, Managing Principal of Dames & Moore, an environmental consulting firm in San Diego. The second briefing, "Understanding Environmental Regulations" was presented by Mr. Charles Whisonant, Esq. a well known environmental attorney and lecturer at U.C. Irvine. Both lecturers provided their services pro bono to the BETRC. Three additional regulatory briefings are scheduled for delivery during the remainder of the '96 calendar year. Financial Assistance/Capital Formation The Business Development Specialist pursued the establishment of a Micro Enterprise Loan program, and worked with several clients to obtain financing via the Micro Enterprise Loan or other available sources. Additionally, the Environmental Management Specialist was involved in two Springboard events assisting BETRC clients to present their businesses to venture capitalists and other business professionals in attendance. IE - ;L.( .~ --- -~¡ '~. 19 Procurement Assistance A brown bag presentation was hosted byBETRC featuring the Contract Opportunities Center (COe) on June 13, 1996. Bob Hogby, Lead Procurement Specialist, provided important infonnation on how to secure various government contracts, including enviromnental cleanup and waste reduction contracts. Twelve BETRC clients attended the lunchtime meeting allowing them an opportunity to sign up for COC services. Minority Business Development The following minority and/or women owned businesses were assisted by the BETRC: BEBC tenants: Martha Valdes and Associates, AC Southwest Materials, and T&L Enterprises (dba ESP), COLEF Non Tenant BETRC clients: MICA Enterprises, Natural Indulgence and Sylvia Trujillo, Air Quality Team, EZRA International Direct Counseling ofBEBC Tenants The following chart summarizes the direct counseling ofBEBC tenants during the first year of BETRC operations. COMPANY NAME SERVICES BUSINESS CROSS ENVIRON. TOTAL PROVIDED DEVELOP. BORDER MGMT. HRS. CONSULTING SINCE HRS. TRADE HRS. HRS. AC Southwest Aug. '95 78.36 4.75 10.70 93.81 Materials Aqua Systems April '96 to 6.50 4.50 0.0 11.0 June '96 Aztec Reclamation and Jan. '96 2.50 0.0 0.0 2.50 Recoyery Biozyme Oct. '95 14.75 0.0 3.0 17.75 Cal Metals & All Aug. '95 4.0 3.50 0.0 7.50 Computer Surplus COLEF April '96 1.0 3.75 0.0 4.75 Environmental March '96 11.0 2.75 14.0 27.75 Technology of California Martha Valdes and Sept. '95 33.0 6.75 0.0 39.75 Associates Metallic Power Sept. '95 81.35 10.0 0.0 91.35 On-site Environmental Feb. '96 0.50 12.0 0.0 12.50 Lab Project Green Gene Nov. '95 to 51.0 0.0 1.0 52.0 March '96 J .. '~20 - ¿-.:z..2... -- -.. -...--.-<..- ---.-..-,.-.- ..-..----- COMPANY NAME SERVICES BUSINESS CROSS . ENVIRON. TOTAL PROVIDED DEVELOP. BORDER MGMT. HRS. CONSULTING SINCE HRS. TRADE HRS. HRS. Rosscore March '96 50.50 0.0 5.0 55.50 T & L Distributors Dec. '95 22.25 7.0 4.25 33.50 (dba-ESP) World Envirotech Jan. '96 3.50 0.0 13.0 16.50 TOTAL 360.21 55.00 50.95 466.16 Again, as had been expected the Business Development hours are significantly greater than the two other categories, Cross Border Marketing and Environmental Management. It must be noted that of the 360.21 hours of business development 226.46 hours were provided by outside consultants in specialized areas such as legal, accounting, marketing, etc. It is anticipated that as the tenant businesses mature the need for business development assistance will shift to the two other areas of specialization, Environmental Management and Cross Border Marketing. It is also expected that the tenants of the BEBC will always have a significant need for business development assistance, therefore, the BETRC Marketing Plan de-emphasizes Business Development assistance to clients outside ofthe BEBC and emphasizes Cross Border Marketing assistance. Other A survey of the BETRC clients was conducted to detennine the quality of the services provided, what services the clients need during the next year and detennine how many jobs are being created. The following chart summarizes the results. £ -.%..3 ",,,,..-.- ""~.,...~ ".N'.' ... 21 Service Questionnaire Summary: Surveyed: 35 Clients Responses: 23 Clients Date of Survey: April 26, 1996 ................................................................................................nn........................·.·.·..·..·....·..·......··..........·................... j QUESTION : YES j NO j !............................................................................................nn.....................~........n....................'t..............................! ¡ Are you now in business? ¡ 22 ¡ 1 ¡ !...................................................................................................n................~n..................n.n.....~..............................! ! Are you making a profit before your salary? ! 9 ! II ! !.....................................................................................................................'!..............................-t..............................! ¡ Are you making a profit after your salary? j 6 114 1 1..·..·....·......····..·..·..···..·......·....··....··....·....·......·..·..··..·....................................'!..............................~..............................! ¡ Did you start your business because of defense industry related work j 5 ¡ 18 1 ¡..~~~~~~~~~.:.................................................................................................L............................j..............................1 ¡ Are any of your employees from defense related work reductions? ¡ 7 ¡ 15 ¡ !.....................................................................................................................¡..~~~.~~:..:..~~.:....L.............................¡ ¡ Have you sought business development services from any other ¡ 8 ¡ 15 j , 'd ' ? C' , j provl er? ¡ who. OC, ¡ ¡ ¡ ! SWC, WTC & ¡ i L...................................................................................................................L~~.~.~................l..............................¡ · How many customers will you serve in 1996? - 0 -LI·5 -L 6-10 ---1L 11-20 ---1L 20+ · How many employees do you now have, including yourself? Full-time JL 0-5 _5-10 -L 10+ Part-time -1Q.... 0-5 _5-10 - 10+ Temporary or Subcontractor ...lL 0-5 _5-10 - 10+ · How many employees have you added since January 1, 1996? ...lL 0 ...lL 1-5 -L 5+ · What professional services do you anticipate needing from the BETRC . ....................................................................-........................................................................................................................................ L.......................~.~?~~.........................L.......................~.~?~~.........................L.......................~.~?~~.........................! ~..........................~~~~:.i~~..........................l..........................~~:~.~~..........................l..........................~~~~:~~~..........................¡ ~........................~~~.~~~.~~~~~........................L.......................~~.~~.~~~.~~.~~~.......................J.......................~~.~~~~~.~~.~~~........................¡ ~.............................~~~..............................l...........................~.~~~~~...........................l.............................~~~..............................~ ¡...........................~.~.~~.~~~...........................l.............................!:::~~..............................l...........................~.~.~~.~~.~...........................j ¡.........................~~~~~:~~~.........................l.........................~.~~.~.~:~~~.........................l..........................::=~.~~:~.......·..···............) L........................~.:=~~.:~................···....·..J...·..·.................·~·:=~~.:~...........................l.........................~~.~~~~~.........·.............) ¡ Computer, Writing, Finance, Distribution ¡ Research Assistance, Inventory ¡ Expansion, Manufacturing j ..............................................................................................................................................................................................................1 £-;2..4 -::. 22 . (Survey Cont.) . How would you rate our services? 5= good; l=poor Average Response Business Development/Marketing 3.74 Cross Border TradelBusiness Development 3.57 Environmental Management/Technical 3.46 BETRC Customer Service 4.47 Outside Consultant Support 3.76 Overall Support 4.05 Partnership Development The BETRC has entered into formal cooperative agreements with the following: Southwestern College's SBD&ITC; CalÆP A's Office of Pollution Prevention Program; MOD with the City of San Diego/San Diego RTA; San Diego Regional Permit Assistance Center; Greater San Diego Chamber of Commerce Small Business Development Center; Imperial Valley SBDC; Sandia Labs and the Border Environment Cooperation Commission (BECC). The Business Development Specialist referred several clients to the Contracting Opportunities Center for training or assistance including: Colors by GD MAK, World Envirotech, Ezra International, Project Green Gene, EpTech, Enrique Preciado and Sylvia Trujillo. An oral agreement exists to provide technical resources and scientific support to BETRC clients on a case by case basis, via Andrew Lissner ofSAIC. City ofChula Vista Councilman John Moot obtained agreement from an intellectual property attorney, Richard Clarke, to provide certain pro bono legal assistance on a case-by-case basis. This has resulted in a relationship that has led to more than $2,000.00 worth of pro bono services to BETRC clients. The National Innovation Workshop (NIW) is a federally funded workshop for inventors and entrepreneurs. The conference is promoted both nationally and locally, and has been offered several times already throughout the East, South and Midwest. The San Diego conference was attended by approximately 200 people from all of the western states. The conference lasted two (2) days, March 29 & 30,1996, and was held at the Town and Country Convention Center in Mission Valley. This was a cooperative effort with many ofthe local business development providers in San Diego providing assistance, many of them BECA partners. The various BECA programs were formally promoted during the event. The BETRC has developed a very close working relationship with the Navy Environmental Leadership Program (NELP). As a result of the relationship, a "brown bag" luncheon seminar was held at the BETRC. Several of the BETRC clients and tenants used the opportunity to present their services and products to Arno Bernardo, the Program Director. Interest was expressed by NELP in several of the products and demonstration projects are being proposed. ~ ...¡. . 23 ~ -;¿S- The BETRC Manager attended the EDA "Economic Leadership and Partners for Success" conference in San Jose, CA May 27 through May 30. This was an excellent opportunity to meet other organizations doing business with EDA, as well as the various EDA officials. In addition to attending the conference, the BETRC Manager took advantage of the opportunity to visit three (3) successful business incubators, including an Environmental Incubator, an International Trade Incubator and a Software Incubator. Linkages to and Joint Ventures with Mexico Businesses and Government Agencies The BETRC staffed a booth with the City ofChula Vista at Mexport, October 27,1995. The event was a good opportunity for outreach to the cross border business community. On January 26, 1996, the BETRC cosponsored a successful workshop with the Border Environment Cooperation Commission (BECC) on "Doing Business with the BECC." Additionally, linkages have been established with: SEMARNAP, Mexico's Environment, Natural Resources and Fisheries agency through the offices ofPROFEPA, the environmental enforcement branch, in Mexico City and Mexicali, and with INE, the regulatory branch, in Mexico City; the State of California's Office of Trade and Investment in Mexico City, which has agreed to provide prompt assistance to companies that have been referred by BECA. Two (2) FAX campaigns were completed that targeted the environmental managers of the top 25 maquiladoras in Tijuana. The infonnation provided included general marketing infonnation about BECA, along with an invitation to participate in a trade mission and the Environmental Leadership Challenge. Information Dissemination and Referral Services Infonnation is routinely disseminated to tenants, clients and the public at large by the BETRC staff. Efforts during the year included participation in: The Aqueous Expo; the Grand Opening, Resource Fair; Western Maquiladora Trade Association meetings; meetings of the various border initiatives such as, Border XXI and San Diego - Tijuana Sister Cities, etc.; Mexport; lEA Conference; Earth Day; various business meetings such as the Kiwanis Club; and more. Referrals are routinely made by BETRC staff to the various BECA partners and other business development organizations including: San Diego Regional Permit Assistance Center; Minority Business Development Center; Southwestern College 'SBD&ITC, Contract Opportunities Center (COC), Southwest Technology Transfer and more. Marketin~ and Public Relations The Aqueous Expo held on September 21,1995, was the first opportunity to market the BECAJBETRC services. It was a successful "first attempt." The Grand Opening and the associated Resource Fair provided a significant opportunity for outreach to the public at large as well as various business entities. The various media organizations .. ":.~. 24 E -:z.~ ---..---.--..-, ... -----~_.__..--- gave excellent coverage to the event. Probably the most effective marketing tool is the professional staff employed by the BETRC. Personal outreach efforts have been directed at the Industrial Environmental Association's Maquiladora Committee, the Greater San Diego Chamber of Commerce through the International Trade Development Committee, both Small Business Development Centers, the Western Maquiladora Trade Association, the National Innovation Workshop conference, and the San Diego- Tijuana Sister Cities Program. Cooperative marketing opportunities included the BECC workshop and the State of California Border Environmental Trade Mission. The BECC workshop involved working with the Border Environmental Cooperation Commission, the U.S. Department of Commerce, the U.S.-Mexico Chamber of Commerce, the U.S.-Mexico Border Progress Foundation, the Southwest Center for Environmental Research and Policy (SCERP), Southwestern College's Small Business Development and International Trade Center (SBD&ITC) and the Secretaria de Comercio y Fomento Industrial (SECOFI). The trade mission involved cooperating with the U.S. Department of Commerce, SCERP, Cal EPA, and the main sponsor, California Trade and Commerce, including the Offices of California-Mexico Affairs and the Office of Export Development. A direct mail FAX campaign was completed to market the fIrst BECA workshop, Intellectual Property Rights, to San Diego county business organizations, which then further marketed the workshop to their clients and members. Two fax campaigns were conducted reaching the environmental managers of the top 25 maquiladoras in Tijuana, providing them with BECA infonnation and invitations to events sponsored by BECA. A cooperative marketing effort with Southwestern College's Small Business Development and International Trade Center included a direct-mail campaign to market the BECC workshop to environmental companies and other organizations. All BETRC seminars are advertised in bulk-mailings and press releases. The mailing list consists of manufacturers, environmental fIrms, business assistance centers, and chambers in San Diego County; special mailing lists include the San Diego Regional Environmental Health and Safety Training Consortium, Department of Environmental Health-Industry Coordination Group, BETRC clients, BEBC tenants, and the BECA Advisory Board Members. The BETRC staff distributes fliers on a regular basis as they attend their standing and ad hoc committee meetings, and the Southwestern College SBD&ITC distribute BETRC fliers in their monthly distribution packets as a cosponsor effort. The Society of Professional Engineers distributed seventy of the June 12 postcards. The centers that have displayed our seminar fliers are the La Jolla SBDC, Southwestern College SBD&ITC, South County Career Center, Air Pollution Control, CONNECT, World Trade Center, and Contracting Opportunities Center. Furthennore, the BETRC seminars are promoted in the Southwestern College weekly bulletin, posted in SWC classrooms, and are rree to students with a valid !D. £-:L.., ."!';'\,;>'!II'~ ',- ..... .. 25 Southwestern College's bulk rate and pennit number were used to mail out 5.5" X 8.5" postcards and 8.5" X 11" flyers to market the BETRC seminars, and the Community Relations & Public Infonnation Office at the college disseminated press releases, advertised in the PR News wire, and contributed $125.00 to have the May 8 and June 12 flier inserted in the Chula Vista Chamber Newsletter. In an additional effort to reach the business/technical community, seventy (70) BECA brochures were mailed to the presidents of most of the local engineering and technical societies in San Diego. The BETRC/BEBC Brown Bag presentations are tree 1.5 hour lunch discussions with outside professionals and our clients. The Brown Bag presentations are promoted to BETRC clients by fax and to BEBC tenants with fliers. A BECA brochure was developed with input trom BETRC staff. Additionally, the ftrst draft ofa BETRC brochure was completed and expected to be in final print fonn by the second quarter of year 2. The BETRC brochure emphasizes the three areas ofBETRC's specialty, presents client testimonials, and includes a detachable inquiry card. Group Training Aqueous Solvent Expo - September 21, 1996 Intellectual Property Rights Seminar - March 14, 1996; Future EP A Regulations Seminar - May 8, 1996 Navy Innovative Technology, NELP. Brown Bag - May 29, 1996 Union Bank Commercial Services, Brown Bag - May 30, 1996 Understanding Environmental Regulations Seminar - June 12,1996 Government Procurement Opportunities, Brown Bag - June 13, 1996 Micro10an Program for BEBC tenants, Brown Bag - June 19, 1996 Payroll services for Small Business Owners, Brown Bag - June 26, 1996 Additionally, Brown Bag presentationes and Seminars were scheduled at the rate of approximately two (2) per month through December 1996. National and International Major Forums The BECC workshop, the State of California Border Environmental Trade Mission and the National Innovation Workshop, all previously described in thiÚeport, were all major forums attracting national and international crowds. BETRC staff arranged for BECA to be a cosponsor along with California Department of Toxic Substances Control and the Institute for Regional Studies of the Californias' a workshop on the Import/Export of Hazardous Waste. The workshop was a sell out due to the successful marketing effort, and it is very likely that the seminar will be repeated in the near future and that BECA will again be a cosponsor. E-?-f/ ...0,,"" "'>4:-. ¡i'!:"'i._~' ,', _ ç 26 ,"_ 'e. -'...,~-'-, ...-_..,.._._.__.~._-----,.- Innovative projects The Aqueous Expo and Grand Opening have both been previously described. In addition, BETRC worked with Bill Snyder, BEBC Manager, to develop plans for relocating BECA operations to Rohr Building 19, the mostly abandoned corporate headquarters building. The idea behind this project was to create an opportunity for BETRC and BEBC to broaden the scope of their respective programs, an important project considering the future of the program "beyond the EDA grant." It is anticipated that this project will consume considerable time and resources to plan and do. If the project is properly and timely executed, significant benefit to BECA tenants and clients is anticipated. A cooperative effort with the Border Environment Cooperation Commission (BECC) has been established where BECA will provide assistance to BECC applicants by providing applications, guidelines, newsletters and other documents. BETRC plans to offer a "guest office" to BECC staff when they are traveling to the San Diegoffijuana region. This is a good opportunity for both parties: for BECA, it adds visibility and credibility to be associated with BECC, and it allows BECC to have a stronger presence in San Diego, as they now are represented only by their commissioner here, Pete Silva. Strategic Plan to Wean BETRC from EDA Funds The BETRC is scheduled to charge fees for services to clients that do not meet certain criteria beginning July 1, 1996. This will not by itself wean BETRC from EDA funds; therefore, additional funding sources must be found. It is anticipated that grants, joint ventures and partnerships with the private sector will be required. A strategic plan will require input from BECA and BEBC and cannot be unilaterally created, since BETRC is not an autonomous organization and everything that is done must incorporate services from the other BECA divisions. BETRC will participate in the BECA administration strategic planning process over the coming months. Assistance to Chula Vista Businesses All tenants of the BEBC are Chula Vista businesses and receive priority assistance. Rohr is currently receiving significant assistance from the Environmental Management Specialist. Additionally, when possible the BETRC uses Chula Vista businesses as suppliers, such as printers vendor, etc. Personnel Management Permanent Staff Ned Ardagna, Manager - started as temp. July 10, 1995; pennanent position September 20, 1995. Joyce Sheehan, Senior Project Clerk - started August 7, 1995 Martina Peinado, Project Clerk - started August 8, 1995 Jim Graham, the Business Development Specialist - started October 9, 1995. Veronica Gomez, the Cross Border Marketing Specialist - started November 13, 1995. Don Kowal, the Environmental Management Specialist - started January 2, 1996. Hazel Chauhan, Student worker - started March 20, 1996 . £'-.%.1 --. 27 . Consultant Pool The consultant pool became operational during the Third Quarter. At present approximately 30 consultants have been approved. Expertise includes consultants in the following areas; legal, technical, marketing, business development, trade, and more. Participation in Regional and Statewide Forums Boards and Committees A listing of the Committees that BETRC staff members attend includes: International Trade Development Committee of the Greater San Diego Chamber of Commerce; Maquiladora Committee of the Industrial Environmental Association; Western Maquiladora Trade Association; the Border Trade Alliance; the U.N. Environmental Committee of the San Diego-Tijuana Border Region; World Trade Center; Strategic Connections of the San Diego- Tijuana Sister Cities Society; San Diego- Tijuana Border Initiative; UCSD Connect; Jacobs Foundation, San Diego Partners; SBDITC Advisory Committee. Environmental Business News Letter BETRC solicited bids for developing an Internet World Wide Web site. This will create a presence on the Internet, currently one of the best marketing tools for technology service providers. The website will have an events calendar, a newsletter, e-mail addresses for BETRC Staff, promotional information for the BEBC tenants and ad space available for BEBC tenant companies. At this time the best opportunity for the BETRC to create a newsletter probably exists on the Internet. Advocacy and General Economic Development The BETRC routinely provides information to businesses advocating economic development for the City of Chula Vista and the region in general. These efforts include the Leadership Challenge in partnership with the City of Chula Vista and individual efforts such as assisting' World Envirotech locate certain operations into the San Diego Region, via tenancy in the incubator. Chula Vista Environmental Micro-Enterprise Revolving Loan Fund The Business Development Specialist has spent a significant amount of time on this project working with the BEBC manager. Efforts include performing research, providing background information and determining success rates of other micro-loan programs, both locally and nationally. Research information was obtained from the SBA, the Community Development Corporation, and programs developed by the Tri-Cities business incubator in Richmond, Washington and BBAN in Birmingham, Alabama. The Specialist also met with the City of Chula Vista staff and City Attorney to review and obtain advice on revolving loan fund policies and procedures. Financial Report $3,950.00 in revenue was generated by the BETRC from the Aqueous Expo as "program revenue." Additionally, the BETRC received $12,636.95 from Cal EPA' as reimbursement for expenses from the Aqueous Expo held September 21,1995. This creates a $16,586.95 contribution to the BECA program. £-30 28 ---"'~"-'-'--' -_._.._-~...,-_.._... - .---------.--.- Border Environmental Commerce Alliance FINANCIAL STATEMENT FY 1995-96 . £-31 ) ----,.. ,,--,..... --.,,--." --,---_.. ._.."..~..~----~--_. Federal EDA Grant LINE ITEM BUDGET Category Federal (EDA) Nonfederal Total Cash In-Kind Personnel $486,567 $89,448 $53,675 $629,690 Fringe Benefits $153,653 $30,528 $14,738 $198,919 Travel $9,000 $0 $0 $9,000 Equipment $62,352 $0 $0 $62,352 Supplies $19,300 $0 $0 $19,300 Contractual $1,038,364 $100,000 $0 $1,138,364 Other $230,764 $0. $378,829 $609,593 Total Direct $2,000,000 $2,000,000 $447,242 $2,667,218 Indirect $0.00 $0 $0 $0 TOTAL l¡t~~t~!¡~ftli~~~1~l~1\l!II.B; ¡~[*¡a~1!!~':~;II¡I~ ¡i'¡!¡jl1'¡:tfi¡~¡¡II~ill~ :i¡I!!!¡¡¡IÎ~¡~il!l~ FY 95/96 EDA REIMBURSABLE EXPENSES Category ED A Budget Expenses EDA Balance 7/01/95 - 6/30/96 Personnel $486,567 $148,108 $338,459 Benefits $153,653 $39,688 $113,965 Travel $9,000 $3,619 $5,381 Equipment $62,352 $48,985 $13,367 Supplies $19,300 $10,093 $9,207 Contractual $1,038,364 $241,488 $796,876 Other $230,764 $44,651 $185,736 Total Direct $2,000,000 $536,632 $1,463,368 Indirect 0 0 0 1~1111111111~UII~lllilll::lllj;¡il~J¡{lltll.\ÎII.I...1!o!íj'¡':!..I:il£illlì! £...3~ 1 't· . 29 ~i _ _~._m_____".____.""'__+______'_____·_'·_ - 00 0 0 0 0 '" 00 0 ""='" '<T '" "" "" "" "" '" '<T "" !;,t} "=! 0 r- M 0 ~!j! .5 ",' ..,¡ 0\ 0\ ;: - - '" '" :Ni;CHi:, "" "" M M Œa!iI .::; "" "" :.;.;.:.;.;.;.;.;.:.:.:. :::::::~:::::::~:::::; . 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July 01, 1996 to September 30,1996 EXECUTIVE SUMMARY BECA Program Administration Priorities for the quarter for BECA program administratiòn included further integrating BECA activities with Chula Vista economic development; recruiting new tenants; facilitating tenant success; working with BEBC and BETRC staff on facility-related issues; permanently staffmg the Contract Manager position; hiring a temporary BEBC Manager; and identifying administrative policies and procedures to further increase BECA's efficiency and effectiveness. - One of the BECA Advisory Board members continued as the temporary BECA Director. The recruitment for a permanent director has been on-going and should be completed in the next quarter. On August 5, 1996 a permanent Contract Manager was hired and on September 6, 1996 a temporary BEBC Manager came on board. During the last several months, BECA has been in discussions with Rohr to explore the potential for the expanded use of Rohr facilities. Coinciding with these discussions, an opportunity arose to partner with several related organizations as part of a major new economic development effort involving an 80,000 square foot Rohr building. These discussions are on-going, and decisions regarding these issues will be made by the end of the year. Border Environmental Business Cluster (BEBC) During the fIrst quarter of FY 96/97 BEBC accepted three new tenants into the Cluster. At the same time, three companies left the incubator. Occupancy at the end of the quarter remained at approximately 75 percent. The Cluster tenants represent a broad spectrum of sectors within the environmental industry. Services include technology-intensive products, geotechnical services, environmental project consulting, recycling, environmental product distribution, and laboratory testing services, among others. Border Environmental Technolo2:v Resource Center ŒETRC) During this reporting period, BETRC entered into a cooperative agreement with the Small Business Development & International Trade Center (SBD&ITC) of Southwestern College. As BETRC is itself a sister organization of the SBDC the cooperation between the two 'IJ;" .- C-3S' . -,,:;:., '>~' .~-., . :++ .. ..: BECA Quarterly Report ,/fc.-.......' July 01, 1996 to September 30,1996 organizations is very close and mutually beneficial. An example of this close cooperation is the recent opening of the Business Resource Center (BRC) which is an extensive library of small business aids including on-line computer programs, hard copies of various small business "how . to" pamphlets, and professional staff available to assist the small business person seeking help. One of the services BETRC provides is inte~tional trade assistance. Much, if not most, of the emphasis in this area has been on Mexico. However, one of the BETRC specialists queried all the environmental companies in San Diego county to detennine their interest in obtaining business in Indonesia and Thailand. Based on the information obtained from the environmental businesses, various government agencies were contacted. At least one opportunity was uncovered in the area of reducing emissions from two cycle engines and two San Diego firms were given this trade lead. The library computer is now Internet-friendly, giving users of the BECA Resource Center a no- cost opportunity to search the World Wide Web for business and financial information as well as for market research. This Internet connection was the result of partnering with the Technology Incubator at San Diego City College for a dial-up access account on their web server. E - .a.G. ..........'- '-:) 2 .. ~...A... ...-.-..-.-----.----.+...--- · ~.. " ,.; BECA Quarterly Report ...c;./O.\.... July 01, 1996 to September 30,1996 BECA Program Administration QUARTER PRIORITIES Priorities for the quarter included further integrating BECA activities with Chula Vista economic development; attracting new tenants and clients; filling key staff positions; working with BEBC and BETRC staff on facility-related issues; and identifying administrative policies and proce- dures to further increase BECA' s efficiency and effectiveness. ADMINISTRATION BECA Staff The following changes were made to the BECA staff: BECA Director The BECA Director, Geoff Bogart, resigned to accept a position related to cross-border marketing, his professional area of expertise. Geoff was replaced on an acting basis by Jeanette Moorhouse, an environmental consultant who was a member of the BECA Advisory Board. The recruitment process continued for a permanent replacement and should be completed in the next quarter. BECA Contract Administrator A recruitment process was initiated for the BECA Contract Administrator. A new Contract Manager, Barbara Parr, was hired August 5, 1996. Border Environmental Business Cluster Manager The BEBC Manager, William Snyder, resigned to accept a promotion with a private business development firm. A temporary manager, Stan Shultz, was hired September 6,1996. Contract Mana¡¡ement It was decided that Southwestern College (BETRC staff) needed greater flexibility to respond to changes in the environmental market. Thus, some of the BETRC performance milestones will be reexamined in accordance with a fine tuned revision of the BECA strategic plan. At the direction .... "'. 3 £-37 II ~ .,.... ~++ ,..: BECA Quarterly Report .t'It'a....... July 01, 1996 to September 30,1996 of the BECA Director, BETRC employees are working to implement the strategic plan. In the meanwhile, Southwestern will continue to provide BECA with the performance milestones. JOBS SA VED/CREATEDIRETAINED During the first quarter of 1996/97, incubator tenant companies employed a total of 52 persons. Included are employees actually housed at the' incubator, as well as those who were employed by the tenants in "off-site" locations in the San Diego County vicinity. This corresponds to the figure of 35 reported in the FY 95/96 Fourth Quarter Report, an increase of 17 employees. PARTNERSHIP DEVELOPMENT During the last several months, BECA has been exploring with Rohr the potential for expanding the use of Rohr facilities. Coinciding with these discussions, an opportunity has arisen to partner with several related organizations as part of a major new economic development effort involving an 80,000 square foot Rohr building. This partnership opportunity is described in detail in the section of this report which covers BEBC under the subtitle "New Strategic Partnership Opportunities". PRIORITIES FOR NEXT QUARTER Priorities for the next quarter will include: Facility Planning: Additional space is needed in order to acconunodate the demand for BEBC. Two options are available: (1) the remaining 10,000 square feet at our present location or (2) a portion of the 80,000 square feet at the Rohr facility described above. Both options will require repairs and improvements to the facilities. During the next quarter staff will determine the preferred option based on an evaluation of the two options in terms of suitability, strategic goals, and the costs of repairs and improvements. Strateg:ic Planning The beginnings of a BECA strategic plan is being prepared to provide: (1) a "blueprint" for BECA operations; (2) augment the Southwestern contract performance milestones; and, (3) identify strategies for continued funding of the program past the current grant period. Ø"-3i - 4 - - -~_.._.._...._-._--._. BECA Quarterly Report July 01, 1996 to September 30,1996 Administration City Council approval is being sought for administrative procedures which will increase the efficiency of the program. Currently, staff is investigating changing the Interim Advisory Board from a City Council advisory board to a staff advisory board. A staff advisory board would pennit Board alternates to vote and allow non~Chula Vista residents to be members of the board. This change would implement and encourage the regional and binational elements of the program and facilitate meeting quorums. BORDER ENVIRONMENTAL BUSINESS CLUSTER INTRODUCTION The following report discusses the operations of the Border Environmental Business Cluster (BEBC) during the quarterly period between July 1 and September 30, 1996. The first quarter of FY 96/97 BEBC operations produced the acceptance of three new tenants into the Cluster. During the same period three tenants left the Cluster. Cluster occupancy remains at approximately 75 percent. The tenants within the Cluster still represent a broad spectrum of sectors within the environmental industry including technology-intensive products, geotechnical services, environmental project consulting, recycling, environmental product distribution, and laboratory testing services, among others. Another highlight during the quarter was the development of a major new strategic partnership opportunity involving Rohr, one ofBECA's major initial private sponsors. This new opportunity may provide both the chance to enhance the facility capabilities of the incubator program, and also to co-locate the BECA program with a number of other small business and employment resources as part of a major economic development effort. This report is divided into two sections to reflect these major areas of activity: (1) Status of Incubator Tenants and (2) Expanded Strategic Partnership Opportunities. STATUS OF CURRENT INCUBATOR TENANTS As indicated above, the Cluster accepted the following three new tenants during the quarter: CaLEF Foundation - EI Colegio de la Frontera Norte (CaLEF) is a research and degree granting institution which: (1) provides information on U.S.-Mexico border issues; (2) trains 1:,' '"'*If 5 E -,3 c¡ · :++ ..: BECA Quarterly Report ~"f:. ,...."" July 01, 1996 to September 30, 1996 specialist in environmental areas; and, (3) provides binational technology transfer services for environmental infrastructure proj ects. Organic Recycling West, Inc. - Specializes in providing composting expertise to local gove=ents wanting to establish and operate efficient municipal composting programs. Services range ITom facility and equipment consulting to designing, permitting and planning, and/or turnkey operations. ReWater Systems, Inc. - Developed and markets a unique graywater filtration and irrigation system designed for use in residential and light industrial settings. During the same time, three companies left the Cluster: 1. Biozyme International of California's owner moved the operation to northern California 2. Rosscore moved its operation to the owner's residence due to financial considerations 3. Wodd Envirotech consolidated all their operations at its Oregon facility TENANT SUMMARY AS OF September 30, 1996 · AC Southwest Materials -Involved in the recycling and reprocessing of plastic materials for end-users on both sides of the US/Mexico Border, as well as in China. In particular, the company has found markets for all types plastics (recycle categories 1 through 7). · Aquakleen - Formally AquaSystems, sells water purification systems based upon reverse osmosis technology and drinking water systems which convert ambient air humidity into purified water. · Aztec Reclamation and Recovery, Incorporated - Specializes in recycling and cross- border transportation and disposal of hazardous/non-hazardous waste. · California Metals and Electronics - A metals and electronics recycling concern that is attempting to break into the Mexican market. · COlEF - El colegio de la Frontera Norte(COLEF) is a research and degree granting institution which (1) provides information on U.S.-Mexico border issues, (2) trains specialists in environmental areas, and (3) provides binational technology transfer services for environmental infrastructure projects. · Environmental Scientific Products - A minority-owned distributor of environmental and safety products including HazMat Kits, specialty chemicals, and environmentally-benign asphalt alternatives. £-40 ..., 6 - ---...-....-.,... -...-... -'-----'.- ... .....~--------- BECA Quarterly Report July 01, 1996 to September 30,1996 0 Environmental Technology of California (Envirotech) - Sells and services the TF Purifier oil filtration system. This innovative system was the first technology to be certified by CAUEPA's Environmental Technology Certification program. 0 Metallic Power, Incorporated - A spin-off from Science Applications International Corporation (SAIC), Metallic Power is developing a rapidly-rechargeable zero-emission power source. The technology, originaJly developed for defense applications, is now being applied by the company to a variety of commercial applications including electric vehicles and small mobile power generators. 0 ONSITE Environmental Laboratories, Incorporated - A a minority and woman owned business specializing in providing real-time analytical data using a variety of mobile environmental testing platforms. 0 Organic Recycling West, Incorporated - Specializes in providing composting expertise to local governments wanting to establish and operate efficient municipal composting programs. Services range from facility and equipment consulting to designing, permitting, and planning, and/or turnkey operations. 0 ReWater System, Incorporated - Developer of a unique gray water filtration and irrigation system designed for use in residential and light industrial settings. 0 South Bay Oil Project - A program funded by the California Integrated Waste Management Board and run by the Urban Corps of San Diego. The project has cOr]tracts with a number of local government agencies and private companies for collection, recycling, and proper disposal of used oil, and other recycling products. 0 Martha, Valdes and Associates - A minority women-owned environmental consulting firm that specializes in solid waste issues along the US/California - Mexico border. Currently, the company has contracts with the City of San Diego and several not-for-profit organizations. Tenant Success Stories Environmental Technology of California (ETC) - After intensive marketing efforts, ETC captured a significant initial order from Solar, a major San Diego manufacturer. ETC markets a unique oil filter that can extend oil use in trucks and buses to 75,000 miles and beyond. While ETC has received several orders for their filter from the transportation sector, this order was for 35 filters to clean up and extend the life of oils used in industrial machines. It is expected that after proof of performance is obtained, Solar will consider use of these filters throughout all their many plants. There exists the potential for inclusion of this filter as an integral part of Solar's supply of certain manufacturing equipment. £.-4( C:\BECA\MELOQIE\REPORTS\Q-1-RPT.97 1,: ':"J 7 - , . ,;> .,... : - >;. 'ò .:- BECA Quarterly Report "'", ..+ <.tcr ,,\.\0' July 01, 1996 to September 30,1996 Summary of Current Tenant Business Statistics A summary of the survey of the tenants combined business statistics for the quarter is provided below. Type olDusiness: Stage of BusinessIDate Established: -2- Corporation Pre-formation _2_ Sole Proprietorship ...1... 0 to 6 months _ Partnership ...l. 6 to 12 months _ Limited Liability Corporation .....L t to 2 years _2_ Other (please Specify) ..í.. 2 to 5 years Non-Profit Area of Business Represented: -L Research and Development ---K- Laboratory Services -L Technology Manufacturer -X... Materials Processor _X_Engineering and Consulting Services ----Ã- Distributor --1L- T!1UISporter -L Other Service Company --1L- ImportlExport ~EnvironmentaJ Interest Group _SalesIMarketing _Other (please Specify ) Environmental Sectors Represented: -Ã- Air Pollution Prevention/Control -L Waste Management ~ Water TreatmentJFiltration -L Waste Minimization _Site AssessmentIRemediation EnvironmentaJ Law ~ Instrumentation and Equipment ---À...- Alternative Energy Technologies --X-RecycHng _ Industrial Ecology ~Pollution Prevention Natural Resource Conservation --Ã- AnalyticallMonitoring -Ã..-- Green Productsffechnologies _ Environmental Software/Computer Modeling Other Defense Conversion Status: San Diego Region Status: -L Company significantly impacted by defense downsizing ---2....- Company was already located in San Diego County _Founder is a displaced defense worker ----L. Company was newly established in San Diego County -1- Company uses or plans to utilize defense or dual-use _ Company was re-Iocating to San Diego County technology for commercial applications ---±-- Company was established as a new business division in San Diego _ Company employs significant percentage of displaced County defense workers Etbnic Background (provided on an optional basis): Ownenbip Status: Native American -'-- Minority Owned -L African American -L- Woman Owned Asian or Pacific Islander -L Disabled Veteran ---Í- Caucasian _ Other Underrepresented Group ( ) ---L. Hispanic Other ( ) . Note: These figures were compiled ITom the best information available and were taken ITom data submitted by the tenants. --j- .~, C:\BECAIJoAELODIE\REPORTs\Q-1·RPT.97 8 -----. ....... ..-.....-- BECA Quarterly Report July 01, 1996 to September 30, 1996 Total number of employees (includes owners) in San Diego County: 52 Among all people that work for the company (including the owners), number earning: ~ Less than $5.00 per hour ---1L Between $5.00 and $10.00 per hour ~ Between $10.00 and $20.00 per hour ---1L Over $20.00 per hour · Note: These figures were compiled from the best information ayailable and taken from data submitted directly by the tenants. Recruitment Efforts. The BEBC continues its recruitment efforts in conjunction with the ongoing marketing efforts being undertaken by the other staff. This includes direct mail efforts targeted at new entrepreneurs and participation in the numerous small business training seminars occurring throughout the County, including the BETRC seminars. Frequent networking with other local business development organizations such as the SBDCIITC at Southwestern College, the San Diego Business Partners, the San Diego Regional Business Incubation Alliance, and the Chula Vista, and Greater San Diego Chambers of Commerce, among others. In addition to these efforts, the staff has continued to explore new relationships with university research programs involving environmental technologies, as well as partnership opportunities with federal programs sponsoring environmental technology demonstrations. In terms of recruiting new entrepreneurs for the Cluster, these university efforts are largely focused on the long term. However, this marketing should "plant the seed" for the future relationships with technology-intensive, high-growth-potential companies which tend to create the most high-skill, high-wage jobs over the long term. THE MICRO LOAN PROGRAM (MLP) The Chula Vista Microloan Review Committee met on Wednesday, August 7, 1996 to discuss and approve the fust loan application from Metallic Power, Incorporated. The loan was working capital to service the R & D contracts for the South Coast Air Quality District and the City of Chula Vista for zero emissions and fuel cells as an alternative portable energy source. The review committee consisted of vice-presidents of Union Bank of California, Pacific Commerce Bank, Wells Fargo, and Grossmont Bank. Packages were prepared and delivered to the review committee members by the Business Development Specialist and the BECA Business Cluster Manager. The loan application for $50,000 was not approved by the Bankers Community E - 4.3 ,. ~.~ C:\BECA\MELODlE\REPORTS\Q-1-RPT.97 9 . :+ .: BECA Quarterly Report "'4'_C! ,.....~.,. July 01, 1996 to September 30,1996 Development Corporation (CDe) loan review committee. The application was not approved because the Bankers CDC does not supply loans for research and development. Environmental Technology of Califomia is currently preparing a loan appliCation package for this BECA fund. NEW STRATEGIC PARTNERSHIP OPPORTUNITIES Background - During the last several months, staff has been exploring with Rohr the potential for . the expanded use of Rohr facilities. The original thrust for these discussions was directed at the ability to utilize wet and dry laboratory areas and small amounts oflight industrial space. Due to the nature of many environmental companies, these types of facilities play an important role in their nonna\ business operations. By providing lab and light industrial space, the incubator program would be able to attract and serve a much broader set of environmental companies than is currently possible. E¡q¡anded Facilities - A mostly unoccupied Rohr facility has been identified that may provide the BECA program with both wet and dry lab space, and a significantly larger office complex. The building itself is approximately 82,000 square feet, with a 6,000 square foot laboratory, as well as light industrial areas. It consists of two floors, each rougWy 40,000 square feet, with the lab facilities on the first floor. The existing layout appears reasonably well-suited for the BECA program, with a variety of enclosed offices, conference and training rooms, and some cubicle areas available. One potential scenario would involve BECA occupying most of the first floor, approximately 35,000 square feet including the labs. This proposal would meet all of the program's anticipated facility needs. Partnership Op~ortunities - Coinciding with building discussions, an expanded opportunity arose to partner with several related organizations as part of a major new economic development effort. The initial concept, as outlined in the figure below, is to co-locate several related economic development organizations in the same Rohr building. This would enable the groups to leverage their existing resources, including technical staff, conference and training rooms, library materials, and other equipment. Furthennore, it would create the opportunity for a greatly expanded public-private partnership dedicated to the economic prosperity of the region. For instance, additional private sector partners could be recruited that would compliment these public organizations, such as a small business lending institution, or a major corporate anchor tenant, or even a university-related research group. Issues to be Addressed - The Rohr building and this expanded partnership concept are still in the very early stages and a number of important issues remain to be addressed in the coming months. First, the Rohr building is in need of substantial repairs and improvements, and reasonable· estimates for these costs will need to be developed. Second, a core set of partners will need to be identified to move beyond the initial concept stage. This core group in turn need to detennine: (1) the actual feasibility of this expanded public-private partnership, and (2) the potential options for financing the building improvements and anyon-going building-related expenses. It is ~ . . ..{-4«1 C \BECA\MELODIE\REPORTS\C-1-RPT 97 "10 ,....-..- - -_.~..._,._"-~.._._--~._,-_..-- · ~ ""... :~ ..: BECA Quarterly Report +~",,~ þ,\''-'" July 01, 1996 to September 30,1996 Economic Development Partnership in Rohr Building 19 BECA PROGRAM Shared Resources & Facilities Employment Resources (Approx. 35,000 sq.ft.) Business DevetopmentITechnical Staff (Approx. 32,000 sq.ft.) BEBC Incubator Training and Conference Rooms South County Career Collaborative Office, Lab, and Prototype Space BETRC Computing Facilities & Office Equip. Business Resources Technical Staffl Consulting Pool Library Space and Resources Other Common Areas Small Business Consultants Financing Links Technical Assistance Providers (Approx. 500 sq.ft.) Small Business Lenders Expanded Cluster Opportunities V coture Capital Associations International Business Incubator R&D Links Software Incubator Univesity-Rclated Parmers Corporate Anchors National Lab Affiliations (Approx. 3,000 sq.ft.) General Small Business Incubator Rohr, Other Major Firms anticipated that in the next quarter these questions will be answered, and decisions made on expanding the facility. BORDER ENVIRONMENTAL TECHNOLOGY RESOURCE CENTER A. Summary Narratives of Successes 1. EXAMPLE OF SUCCESSFUL CONSULTING OF BETRC CLIENT Environmental Technology ofCalifomia (ETC) has been a tenant of the BECA incubator since April, 1996. ETC is currently a distributor of a unique, environmentally superior, oil filter that has received CalEP A's designation as an environmental technology. Only 19 such designations have been made. ETC has received the full gamut ofBETRC services encompassing technical staff assistance related to product improvements, substantial assistance in preparing business plans and direct assistance from BETRC's outside consultants - bookkeeping and accounting, legal assistance for patent searches and employee agreements, to advertising help in preparing press releases and directing those releases to appropriate media outlets. One of the principals is now attending an entrepreneur course as a result of being associated with BETRC. .,¡: cfs- ' .,..- /!i,,-p, ' C:\BECA\MELOOIE\REPORTS\Q-1-RPT.97 " , 11 II . . ~.. '. ,..; BECA Quarterly Report "...cr,...." July 01, 1996 to September 30, 1996 2. EXAMPLE OF SUCCESSFUL UTILIZATION OF A COOPERATIVE AGREEMENT BETRC has a cooperative agreement with the Small Business Development & International Trade Center (SBD&ITC) of Southwestern College. As BETRC is itself a sister organization of the SBDC the cooperation between the two organizations is very close and mutually beneficial. An example of this close cooperation is the recent opening of the Business Resource Center (BRC) which is an extensive library öf small business aids including on-line computer programs, hard copies of various small business "how to" pamphlets, and professional staff available to assist the small business person seeking help. Several BETRC clients used the BRC with the assistance of the BETRC staff including: AC Southwest Materials, Rainwater, Biozyme, and EZRA etc. 3. EXAMPLE OF AN INNOVATIVE BETRC ACTIVITY OR PROJECT One of the services BETRC provides is international trade assistance. Much, if not most, of the emphasis in this area is on Mexico, however one of the BETRC specialists queried all the environmental companies in San Diego county (this infonnation was available as a result of the recently completed BETRC enviromnental survey) to determine their interest in obtaining business in Indonesia and Thailand. Based on the infonnation obtained from the enviromnental businesses, various government agencies were contacted. At least one opportunity was uncovered in the area of reducing emissions from two cycle engines and two San Diego firms were given this trade lead. The business development specialist's vacation to Thailand also yielded a visit to the Pollution Control Department's director in Bangkok. Thailand's main goal is to reduce NOx and CO2 in the country's capital by the year 2007. After a short presentation, the director was very interested in Metallic Power's zero emission fuel cell technology to meet these emission reduction goals. The business development specialist is assisting Metallic Power's owner to provide promotional material to this organization. A direct mail campaign to advertise BECA's ability to sponsor matching grant applications for the National Association of State Development Agencies (NASDA) EnergyÆnviromnental Fund to San Diego-based enviromnental companies was completed in July, 1996. Three responses have been received by the BETRC. B. Summary of Achievements in Meeting Milestones 1. INFORMATION CLEARINGHOUSE The library computer is now Internet-friendly, giving users of the BECA Resource Center a no- cost opportunity to search the World Wide Web for business and financial infonnation as well as for market research. This Internet connection was the result of partnering with the Technology Incubator at San Diego Gity Cøllege for.,a,dial-up access account on their web server. .. r-cfi! C:\BECA\MELOCIE\REPORTS\O-1-RPT.97 12 - ._n__." . ._"....._....._,._.______~_,. BECA Quarterly Report July 01, 1996 to September 30, 1996 The BETRC staff has developed a comprehensive listing ofInternet site addresses with various subject areas including: environmental, business, search engines, information resources, small business, procurement, etc. This list is available to tenants and clients of the BETRC and is updated on a regular basis as staff identifies new or additional web sites of interest. The World Trade Center Association's office in San Diego, a BECA partner, has provided BETRC access to their computerized on-line network. The network contains trade leads from 157 countries that are posted automatically on a global network system allowing the BETRC staff to secure buy/sellleads for clients. 2. DIRECT CLIENT COUNSELING AND CONSULTATION a. Business Development (planning, management, market development, etc.) BEBC Tenants AC Southwest Materials. The business development specialist assisted this company by consulting 3.75 hours on financial analysis, providing a list ofIncoterms from U.S. Department of Commerce and possible speaking engagements for seminars in plastics recycling. Metallic Power, Inc. A total of 31 hours were spent on the client's micro enterprise loan application, factoring possibilities and other financial assistance through both direct consulting and program work for Metallic Power's working capital requirements. Martha Valdes and Associates. The business development specialist assisted Ms. Valdes with her business plan by providing 7 hours of direct consulting on how to use the Internet effectively for locating important contacts and grant proposal requests and to conduct market research at the Business Resource Center. Rosscore, Incorporated. The business development specialist spent one hour of direct consulting to Rosscore by researching a list of contacts for his business in the islands in the South Pacific. Biozyme International. The business development specialist spent four hours consulting this client on how to use the computers at the Business Resource Center to do research for the company's market plan, use the business plan software, and find a company's designated standard industrial code (SIC). Environmental Technology of California. Over five hours were spent in direct consulting time for the legal review of the company's succession plan, patents and copyrights, and general ledger and journal entry assistance for the company books. £-47 ~.~."\,-" "c.'~ -. 13 C:\BECA\MELODIE\REPQRTS\Q-1-RPT.97 BECA Quarterly Report July 01, 1996 to September 30,1996 Environmental Scientific Products (f &L Distribution). Nine hours were spent this quarter in preparing the client's financials for the cash projections, pro forma balance sheets, and historical fmancial statements for the business plan. ReWater Systems. A total of9.5 hours of consulting time was spent with this client for drafting a manufacturer licensing agreement, and then yisiting with a patent attorney to discuss client's legal concerns. BECA Clients - Colors by GDMAK. The Business Development Specialist helped for six hours the owner of this company on consulting how to obtain and transfer to a database a mailing list fÌ'om the Business Resource Center data center. EZRA International. Half an hour was spent to review the client's wishes prior to contacting one of the BECA legal consultants for a cross border distributor agreement with a Mexican business. Biotechnics. Two hours were spent with this company to help fmd sources to market their products and services to golf courses, zoos, amusement parks, school administrators and others seeking to clean up their fÌ'eshwater ponds. On-Site Recycling. The business development specialist consulted this client for three and one- half hours with Martha Valdes & Associates for business startup assistance. Another half hour was spent in reviewing this company's business plan. Terra-Kleen. Telephone contact with this firm regarding how to write proposals for the NASDA environmental grants. One half hour was spent on reviewing with client NASDA documents. Dieckelman and Associates. The business development specialist spent over an hour with a representative of this import-export firm to research sources of the Harmonized Tariff Schedule on the Internet. USA Recycling. This client needed international market research on recycling wood waste and what channels would need to be setup for a successful exporting venture. BECA consulting intake forms were mailed to the owner and one and a half hours were spent with him by telephone and in contact with the referring agency. £ - C/g 'c' ~ ..., C:\BECA\MELODIE\REPQRTS\C-1.RPT.97 14 ----. - _.,..._"~-- BECA Quarterly Report July 01, 1996 to September 30, 1996 Oasis Structures and Waterworks. This client needed infonnation on how to examine the background of a potential foreign partner in Cohunbia. Since the client was from Northern California, he was referred to Elizabeth Krauth at USDOC-ITA's San Francisco office. Consultation encompassed one half hour of direct consulting time. BKM, Inc. This research and development £inn that specializes in small gas-powered engines is seeking funding for the development of a low NOx two-stroke engine. The business development specialist spent one hour in QI with a lab visit scheduled in October (QII). b. International TradelMexico and Latin America market development _ The cross border environmental marketing specialist saw eight new clients this quarter for cross- border assistance, including Pacific Treatment Analytical Services, Environmentally Sensitive Products, General Power, SOQ Environmental, ReWater Systems, RET, LLC, and Tracer EST. Following is a breakdown of the services provided to 21 clients and two potential clients for a total of 62. 75 hours distributed as follows. BEBC Tenants AC Southwest Materials- Helped translate market research materials from Spanish to English for proposal with Chinese investors for a total of 6.75 hours. Aquakleen- Discussed new business plan, BECC opportunities, other financing, opportunities and obstacles in Mexico, and plans for telemarketing for one hour. Aztec Reclamation and Recovery- Assisted client with MEXPORT exhibiting for one-half hour. Discussed hazardous waste import/export needs and how BETRC can assist. Client has declined consulting to date. California Metals- Met with client, Ned Ardagna and Walt Trook to provide client a translation of his ad into Spanish and to assist in identifying potential clients for one and one-half hours. COLEF Foundation- Established contact with law finn to provide pro-bono assistance to establish U.S. non-profit foundation. Discussed COLEF program objectives, opportunities for joint ventures, training programs, etc. Developed and delivered letter of introduction to McKenna & Cuneo for pro-bono work. Consulted for a total of five and one-half hours. Environmental Technology of California- Provided list of Internet sites, discussed ETC's and BECA's web site creation, provided infonnation to obtain Mexican work visa for technical installations. Total of3.75 hours. Martha Valdes and Associates- Set up initial meeting between new client for BETRC and Martha. Did market research on states in Mexico compatible with California for legislative exchange, with a focus on Baja California and Jalisco. Prep and contact time total of three and one-half hours. Onsite Environmental Labs- Provided client infonnation on trade missions, conferences and other events to increase marketing in Mexico. Client has successfully completed first project in Mexico with PEMEX a\d.haS incorporat~o a Mexican company. They continue to need IE' - 4'1 C:\BECA\MELODlE\REPORTS\Q-1-RPT.97 15 · ~ .,... :.. . ,..: BECA Quarterly Report ~.o;. ,.\.... July 01, 1996 to September 30, 1996 marketing assistance to promote company in Mexico, referred to contacts in Mexico City. Total consulting two and one-half hours. Rewater Systems- Met with client and explained BETRC'~ cross-border services, including assistance in finding distributors in Mexico and infonnation regarding the different types of international sales contracts and agreements. Infonned client about new housing developments in Chula Vista, such as Eastlake and Rancho qel Rey, and a possible partnership with the City of Chula Vista to target these developments. Referred client to Barbara Bamberger. Total of one and one-half hours. Rosscore- Client was interested in working with other tenant, Onsite Environmental Labs, in Mexico. Has worked with similar company in the U.S. Provided client with contact infonnation for Onsite and arranged phone call. Total consulting 1.25 hours. T&L Distribution- Met with Tim Washington regarding exporting opportunities, distribution channels, new product lines, joint venture with used medical equipment supplier to export to Mexico, etc. for a total of three hours. BETRC Clients EpTech Group- Client has the Mexico distributorship for portable incinerators and other technologies, and is now able to offer fmancing to Mexican clients through concessions that manufacturer will buy. Met with client to discuss opportunities, concessions, and potential sales for a total of three hours. Environmentally Sensitive Products- A new client that distributes air filtration equipment in San Diego and Tijuana. After reviewing the clients needs, the client and staff drafted a letter of introduction to be faxed to maquiladoras. Staff assisted with translation of the letter, provided maquiladora fax numbers, and later measured the response rate. Total of two and one-half hours. EZRA International- Market research through National Trade Data Bank, prepared several market reports for client, referred to DOC for assistance in finding distributor for a total of 3.75 hours. General Power- At this initial meeting, the client and staff discussed and evaluated the company's corporate structure and plans to build a power plant adjacent to the border in Mexico. The client needs extensive market research, contacts, and political connections. Consulted for a total of two hours. International Environmental Resources- Spent .75 hours with the client discussing the benefits of becoming a BEBC tenant. Client is still not ready to apply as tenant, but she will become part of the consulting pool, advising tenants and clients on the Mexican permit process. Kleinfelder- Identified additional marketing opportunities, met the new international marketing coordinator, and discussed the company's current successful projects in Mexico. Interested in obtaining additional cross-border business, with the first step being a survey and assessment of maquiladora environmental needs. Consulted for a total of three and one-half hours. On-Site Recycling- Arranged meeting with Martha Valdes for consulting, reviewed business plan, discussed opportunities in Mexico. Worked for total of one hour. _. _"~-o C:\BECA\MELODIE\REPORTS\Q-1-RPT.97 16 ._--_."~ ..~_.._'"..__.,~--,-- BECA Quarterly Report July 01, 1996 to September 30,1996 Pacific Treatment Analytical Services- Client has a current project with the County of San Diego to train Baja environmental agency lab technicians in proper lab procedures. Client is interested in other projects and opportunities in Mexico. Met for total of one and one-half hours. RET, LLC- Client has submitted Step I application to the Border Environment Cooperation Commission for a tire recycling project in Tijuana. Assisted client with Step II of application and made an inquiry to an appropriate agency in Baja regarding its feasibility. Advised the client that Baja wasn't supportive of project, therefore, the client has decided not to pursue application. Met with client for a total of7.75 hours. SOQ Environmental Technology- Client distributes four strengths of industrial cleaners and requested infonnation regarding distribution opportunities in Mexico. Consulting totaled 2.25 hours. Tracer EST-Met for 1.75 hours to discuss an air quality program in Mexico that client is currently working on, and research other opportunities in the Mexican market. Referred client to attend lEA maquila association and client is now chairing conference session on Border Air Quality. Potential Clients Equinox- Had one and one-half hour initial meeting with potential client who distributes environmentally-ftiendly products and discussed opportunities in Mexico. Gave client pass to MEXPORT and client fonns. Peter Leider- Had initial meeting with potential client for two hours, who wants to create a value-added service to San Diego manufacturers by brokering services to sub-contract with Mexican companies without risk. Referred client to Southwestern College's Small Business Development and International Trade Center for assistance as focus is not environmental at this time. c. Environmental Management Specialist BEBC Tenants: AC Southwest Materials - 3.75 hours were spent assisting this client by locating a Internet service called, "Recyclers Wodd - Plastics Recycling Section" and enrolling the company in this service. AC Southwest Materials put out several offers to buy and sell and obtained several leads for future business as a result of staff locating this site and forwarding E-mail received concerning potential business. Environmental Technology of California (ETC) - As a result of a change in staff-tenant relationships directed by the BECA Director the environmental management specialist assumed the lead with this tenant. As a result 42.5 hours were spent with ETC consulting and advising in several areas such as: business plans, patent searches, obtaining the assistance of a patent attorney, new product development press releases, review of financial statements in addition to general business direction. £ -~-I ... .,....r, .. C:\BECA\MELoorE\REPORTS\Q-1-RPT.97 17 · ~~:: BECA Quarterly Report 4'.CI...." July 01, 1996 to September 30, 1996 Metallic Power - This tenant participated in a UCSD CONNECT "Springboard" in which the entrepreneur presents his business plan which is critiqued by senior business advisors. The environmental management specialist was invited to this Springboard and as a result arranged a meeting with one of the participants who expressed interest in participating in the management of Metallic Power. A total of one hour was spent on this matter. Rewater Systems - A meeting was arranged between this tenant and a potential funding source. As a result of the meeting there is a definite possibility of a joint business venture between ReWater, which processes and reuses "grey water" and an ozone generator company. Ozone is used to treat waste water and the combination of the two companies could benefit both of them. Direct staff time spent on arranging this venture was one and one-half hours. ROHR - A total of 8.45 hours was spent on the proposal to Rohr to substitute a more benign chemical process for the one currently used to improve the finish of titanium. c. Technical AssistancelInnovation and Technology Transfer The environmental management specialist assisted the City of Chula Vista in their initiative to assemble a South County Collaborative of several assistance agencies and move the collaborative into an building abandoned due to defense cut-backs. This assistance included estimating costs of rehabilitation, requirements for laboratories and light manufacturing, and evaluation of contractor estimates. It's anticipated that this assistance will increase markedly in quarter 2 as more emphasis is placed on strategic planning and related activities such as revision to the BETRC marketing plan. d. Environmental Management Assistanceffraining A environmental management seminar on "Energy Management Techniques" was scheduled for September II and was to be given by Honeywell Corp. This seminar was canceled due to lack of community response. e. Environmental Regulatory Compliance The few inquiries received on regulatory compliance were forwarded to the San Diego Permit Assistance Center with whom BETRC has a cooperative agreement. f. Financial Assistance/Capital Formation In late August, the Business Development Specialist met with several factoring representatives (private establishments that purchase vendor invoices to provide companies with cash by leveraging their account receivables) to develop financing alternatives for the BECA clients. The factoring representatives were Betty Price of Customized Funding Sources, Oscar Shapiro of American Bancorp, and John H. Drais of VIP Funding. g. Procurement Assistance The business development specialist referred several clients to the Contract Opportunities Center for government procurement training or assistance: Environmental Technology of California, ReWater Systems, and Biotechnics. G-<;;l. ..-'"' ...~ i·" ·'1"""', ---- C:\BECA\MELODIE\REPORTS\Q-1-RPT.97 ._, 18 ----..-.- ---- BECA Quarterly Report July 01, 1996 to September 30, 1996 h. Minority Business Development The business development specialist continued minority business development efforts by assisting the following minority and/or woman-owned businesses: Martha Valdes and Associates, AC Southwest Materials, Environmental Scientific Products, MICA Enterprises, and Natural Indulgence. I. Direct Consulting to BEBC tenants Refer to each specific area listed above under the heading ofBEBC Tenants. BEBC tenants always receive priority when scheduling assistance. 3. PARTNERSHIP DEVELOPMENT A Cooperative Agreement was achieved with the Institute for Research and Technology Assistance (IRTA). IRTA is primarily engaged in doing studies in the area of eliminating the use ofHCFC's and substituting other chemicals to degrease parts and components. IRTA is currently working in partnership with Martha Valdes & Associates, a BEBC tenant in several proposals. Cooperative agreements were drafted and mailed by the business development specialist to the Minority Business Development Center (MBDC) and the California Energy Commission's Energy Technology Export Program (ETEP). However, the MBDC closed its doors on September 30 because its federal funding was discontinued. The ETEP cooperative agreement is being reviewed by the Director of the Research and Development division of the CEC. The cross border environmental marketing specialist has attended several meetings with Mark Peters of the U.S. Department of Commerce San Diego District Office in an effort to increase collaboration in working with environmental companies in San Diego that wish to export. As a result, BETRC was invited to participate at no cost on the Pollution Prevention '96 trade mission sponsored by the U.S. Department of Commerce Trade Center to Mexico City, Guadalajara, and Monterrey, Mexico. After meeting several times with Mark Peters of the Department of Commerce this quarter to develop a strategy for marketing the mission to San Diego environmental companies, BETRC was infonned by the BECA contracts manager that EDA would not approve travel outside of the border area of Mexico. Therefore, BETRC will not be able to participate in the mission but will continue to assist Mark Peter's marketing efforts. In the future, BETRC will be limited to participate in trade missions to Tijuana, Mexicali or Ensenada in Mexico. BETRC has been invited by GeofBogart, now with Professional Trade Shows, to co-sponsor a session on border issues in the conference program of the US/Mex Plant and Maintenance Show November 20 & 21. BECA will also receive a complimentary exhibit booth, valued at close to $1,000. The cross border environmental marketing specialist was also able to participate in Professional Trade Show's "How to do Business in Mexico" workshop on September 20 at no cost, for a savings of $1 00. £-:i3 !\~/,. "'.,~ C:\BECAIMELQDlE\REPORTS\Q-1-RPT.97 19 · ~...+- - '.......: BECA Quarterly Report #..c~ -."" July 01, 1996 to September 30,1996 With respect to outreach, consulting and training see 2(d) above related to environmental briefings. 4. LINKAGES TO AND JOINT VENTURES WITH MEXICO BUSINESSES AND GOVERNMENT AGENCIES A letter of agreement was drafted and mailed to the Mexican Consulate in San Diego by the BETRC. During this quarter the cross border environmental marketing specialist was invited to participate in several events sponsored by the Consulate. She attended a private briefmg by four cabinet level Mexican government officials and a celebration event for the September 16 holiday in observance of Mexican Independence Day. BETRC collaborated with the Mexican Consulate in providing materials for the How to Do Business in Mexico workshop. The Mexican Consulate has also come through on its prornise to expedite the Mexican work visa application process by BECA companies when ETC planned to apply for the work visa. This cooperation will be highlighted in the letter of agreement that is forthcoming in year 2, quarter 2. The cross border environmental marketing specialist has been very involved in the Industrial Environmental Association's Maquiladora Committee and has been an integral part of the committee's efforts in planning the Mexico workshop for lEA's annual conference. In helping to plan this event, BETRC has been in contact numerous times with the State of Baja California's Environmental Department Director, who will be the keynote speaker at the event, and with other key environmental regulators from Mexico. The annual Joint Meeting of the Western Maquiladora Trade Association (WMTA) and the Mexican Association of the Maquiladora Industry was attended by the cross border environmental marketing specialist on September 25 at Loew's Coronado Bay. BETRC continues to be involved with the WMT A by working to reestablish the environmental committee of the group, and will work with that committee to develop a survey of the environmental needs of WMT A maquiladoras. This survey will be instrumental in identifying true markets for BETRC clients. A letter of agreement is being proposed pursuant to this matter. The business development specialist referred several clients to the Contract Opportunities Center for training or assistance: Environmental Technology of California, ReWater Systems, and Biotechnics. The business development specialist also researched the Food Safety Law House Bill 1627 recently signed by the White House and provided a written draft of the mandate to the management of Biotechnics. A service request log is maintained by each BElRC staff member to record telephone and walk- in requests for service. The log contains the following infonnation: date, name of person, E-$Ý ..~., ......... '. C:\BECA\MELODIE\REPORTS\Q-1-RPT.97 20 ."..-_.._._,._--_.~-_.,._-,_.."--_._.. BECA Quarterly Report July 01, 1996 to September 30,1996 business name and address, business phone, type of service requested and action taken, and hours or partial hour spent on this request. Activity on this log will be reported in the next quarterly report. 5. INFORMATION DISSEMINATION AND REFERRAL SERVICE BETRC has referred several clients and tenants to Southwestern College's Business Resource Center, i.e., AC Southwest, ReWater, Biozyme, EZRA, etc.. In addition, clients (Environmental Technology ofCalifomia, ReWater, Biotechnics) have been referred for procurement training or assistance to the San Diego Contract Opportunities Center (Cae), which is a centralized information center for all San Diego public bid requests. Many good leads have been generated due to the referrals to the COCo BETRC referred Peter Leider to Southwestern College's Small Business Development and International Trade Center for assistance as this client's focus is not environmental at this time. This client wants to create a value-added service to San Diego manufacturers by brokering services to sub-contract with Mexican companies without risk. Tim Washington ofT&L Distribution was referred to the Centre City Development Corporation for contracting opportunities in the redevelopment of the downtown San Diego area. 6. BETRC ADVISORY BOARD AND COMMITTEES; INVOLVEMENT OF ENV1RONMENTALINDUSTRY BETRC continues to recommend the establishment of a working Technical Advisory Board that consists of small business owners, consultants and trade specialists. This board would provide critical comment and input regarding the operation of the BETRC. This recommendation went forward to BECA director during Q3. A follow-up memo was sent to the acting BECA director in September of this quarter. Once feedback is received from the BECA Director the BETRC will make the corrections and fonn the committee. 7. MARKETING AND PUBLIC RELATIONS The BETRC seminars are advertised in bulk-mailings and press releases. The mailing list consists of manufacturers, environmental finns, business assistance centers, and chambers in San Diego County; special mailing lists include the San Diego Regional Environmental Health and Safety Training Consortiwn, Department of Environmental Health-Industry Coordination Group, BETRC clients, BEBC tenants, and the BECA Advisory Board Members. The BETRC staff distributes fliers on a regular basis as they attend their standing and ad hoc meetings, and the Southwestern College SBD&ITC distribute BETRC fliers in their monthly distribution packets as a cosponsor effort. The centers that have displayed our seminar fliers are the La Jolla SBDC, Southwestern College SBD&ITC, South County Career Center, Air Pollution Control, UCSD E-~T '~ .~ .'..... "'*" C:\BECA\MElODlE\REPORTS\Q-1-RPT.97 21 81 ~ ... ~" ".,: BECA Quarterly Report #"<:I,.\," July 01, 1996 to September 30,1996 CONNECT, World Trade Center, and Contracting Opportunities Center. Furthennore, the BETRC seminars are promoted in the Southwestern College weekly bulletin, posted in SWC classrooms, and are free to students with a valid ID. Southwestern College's bulk rate and pennit number is used to mail out 5.5" X 8.5" postcards and 8.5" X 11" fliers to market the BETRC seminars at a substantial savings in postage expenses. The Community Relations & Public Infonnatìon Office at the college paid $50 to have the September II and October 9 fliers inserted in the Nation~ City Chamber Newsletter. The BETRC/BEBC brown bag presentations are free one and one-half hour lunch discussions with outside professionals and our clients. The brown bag presentations are promoted to BETRC clients by fax and BEBC tenants with fliers. The Cross-Border services flyer was drafted and completed in time to be distributed at MEXPORT, at a "How to do Business in Mexico" workshop and at the annual Joint Western Maquiladora Trade and Mexican Maquila Association luncheon. BETRC has already signed two new clients and has identified some additional potential clients as a result of this marketing piece, which has only been circulating for three weeks. BETRC participated in the MEXPORT trade show on September 11 at the San Diego Convention Center. BETRC exhibited at the City of Chula Vista booth. Three potential clients were identified at the trade show, one of which has already signed as a BETRC client, General Power. The cross border environmental marketing specialist also participated in the following personal business outreach activities. _ Regional Challenges Regional Opportunities Workshop on July 16 sponsored and held at the City of San Diego Environmental Services Department. BETRC exhibited and attended this event and workshop that focused on recycling and waste management in San Diego-Tijuana. -Border Environment Cooperation Commission Board of Directors meeting on July 25. -Grand Opening of Southwestern College's Business Resource Center on August 8 -Contracting Opportunities with Centre City Development Corporation Contracting Opportunities Center on August 7 which was co-sponsored by BECA. -How to do Business in Mexico workshop, September 20, 1996 at the La Jolla Marriott Hotel. This event was sponsored by Professional Trade Shows, and BETRC was invited to participate at no cost (workshop fee was $100) by GeofBogart, who now works for that company. BETRC has added one new client who attended the workshop, Environmentally Sensitive Products. 11: '"'" ·""u'>;..E -~""" ", ,.'1:, ", '.,.,. 'tI'·.. C:\BECA\MELODIBREPORTs\Q-1-RPT.97 . 22 - -.'..-.--.-~"."-.--' ,. ._..__._---~- BECA Quarterly Report July 01, 1996 to September 30, 1996 -Annual Joint Meeting of the Western Maquiladora Trade Association and the Mexican Association Industrial Maquiladora, September 25 at Loew's Coronado Bay. 8. GROUP TRAINING A total of8.5 hours of group training took place at the BEBC Training Room during Ql, year 2 which includes 2 seminars and 2 brown bag presentations (see table below). The BEBC tenants were encouraged to attend all BETRC events at no cost. The participants were asked to evaluate the setting of the seminar and presentation; on an average the setting rated 4.35 and the presentation rated 4.54 (5 being the best). Date Hours Attendees Tenants Title 07/11/96 2.0 13 3 Legal & Tax Implications of Business Organizations 07118/96 1.5 5 1 Small Business Risk Management Strategies Brown Bag Presentation 07/17/96 3.5 14 I Small Business Regulatory Compliance 07/24/96 1.5 11 2 Environmental Technology Export Assistance Brown Bag Presentation 08/29/96 Canceled due to low enrollment. Opportunities With Large Corporations Brown Bag Presentation 09111/96 Canceled due to low enrollment. Energy Management Techniques The brown bag presentation, "Opportunities With Large Corporations," and the seminar "Energy Management Techniques," was canceled due to low enrollment. The brown bag presentation was promoted to BETRC clients by fax and BEBC tenants with a flier. The seminar was advertised through a 2,876 piece bulk-mailing to small businesses, chambers, business assistance centers, environmental companies in S.D. county, and all BETRC clients. 9. NATIONALIINTERNATIONAL MAJOR FORUMS The cross border environmental marketing specialist attended MEXPORT September 11 at the San Diego Convention Center. BETRC exhibited at the City of Chula Vista booth at no cost, and distributed BECA brochures, Cross-Border flyers, and other BECA information. BETRC has already added one new client for BETRC, General Power, and has other potential clients as a result of attending this show. £-S7 'I."",' .~ C:\BECA\MElODIE\REPORTSIQ-1-RPT.97 23 BECA Quarterly Report July 01, 1996 to September 30,1996 BETRC collaborated with Mark Siegel ofE-L YNX (a U.S. EPA program) in scheduling the agenda for a reverse trade mission of high level environmental officials from the Middle East countries of Egypt, Israel, Jordan and Palestine to San Diego' and Tijuana. After recommending visits to EcoParque, maquiladoras, and the municipal landfill or attending the Regional Challenges workshop, the delegation decided to attend the latter. The cross border environmental marketing specialist discussed BECA with the group and provided them with a list of tenants and clients and their technologies/services. 10. INNOVATIVE PROJECTS BETRC has continued working with the manager of the BEBC, the acting BECA director and the City of Chula Vista to finalize plans for relocating operations to Rohr Bldg. 19 or other alternative to facilitate the future of the BECA program beyond the term of the EDA grant. This project has, and will continue to consume considerable staff time and effort. One of the key areas of future concern is the need for laboratory facilities and light manufacturing space. The qualifications of the BETRC staff are of considerable importance to successful implementation of this project. 11. STRATEGIC PLAN TO "WEAN" BETRC FROM EDA FUNDS BETRC submitted a Marketing Plan with the previous quarterly report. As a result of this submission and other issues, increased impetus has been given to the formulation of a strategic plan to continue and improve the operations ofBETRC and BECA, not only within the context of the grant but beyond the grant period. Several internal BETRC and BECA meetings have been held to establish ground rules and background to a more formal strategic planning process. It was decided to consider using a strategic planning facilitator to expedite the process scheduled to begin in October. 12. ASSISTANCE TO CHULA VISTA BUSINESSES All the BEBC tenants are Chula Vista business licensees and BECA, BEBC, and BETRC use the services of many Chula Vista businesses. The BECA program has also spotlighted Chula Vista as business friendly and showcased Chula Vista and its businesses throughout the region. 13. PERSONNEL MANAGEMENT BETRC is staffed with qualified professionals who participate in many staff development activities. The table below outlines the recent training attended by staff. ,E -~T -~ -~ \ ."~ ,". ,>\~" -" " "".'; C:\BECA\MElODlE\REPORTS\Q·1-RPT. 97 24 ,..--..----'..-'.... ..------ II .: , 1-.. ~. I .: BECA Quarterly Report ""'~.Cl "......,.. July 01, 1996 to September 30, 1996 Date Training Title Seminar Total Staff Staff Member{s) Duration Hours (#Hours) . 7/16/96 Regional Challenges, Regional 8 16 Jim Graham, Veronica Solutions Gomez 8/29/96 Trade & Investment Opportunities in 2 2 Jim Graham Korea and Japan - 9/11/96 MEXPORT Convention 8 8 Veronica Gomez 9/18/96 Mexican Consulate Briefmg 2 2 Veronica Gomez 9/20/96 Doing Business in Mexico Seminar 7 7 Veronica Gomez 9/28/96 Southwestern College Staff Retreat + 6 18 Jim Graham, Martina various workshops Peinado, Joyce Sheean 9/30/96 Team Building Workshop 8 40 Jim Graham, Veronica Gomez, Don Kowal, Martina Peinado, Joyce Sheean TOTAL TRAINING HOURS 93 14. PARTICIPATION IN REGIONAL AND STATEWIDE FORUMS AND BOARDS AND COMMITTEES The business development specialist attended the U.S. EPA Border XXI Community Meeting held at Southwest High School on July 9,1996. This meeting was a series of meetings held to discuss the recent report released entitled "US/Mexico Border XXI Program - Draft Framework Document". The business development specialist subsequently participated in a review committee that reassessed and commented on statements made at this public forum. The cross border environmental marketing specialist is very active with the lEA Maquiladora Committee, and attends its monthly meetings, and has worked on the development of the program for the U.S. Mexico border issues forum to be held at lEA's annual conference in November. 15. ENVIRONMENTAL BUSINESS NEWSLETTER AND OTHER BETRC PUBLICATIONS The "How to Do Business in Mexico" document has been updated and supplemented with additional infonnation. This is provided on an ongoing basis after initial meetings with clients that are considering entering the Mexican environmental market. An announcement for an internship position was created by the project clerk, and we expect to have an intern to work on completing this milest~ne during quarter 2.£_ \;, '. "'-, ~.., C:\BECA\MELODlÐREPQRTS\Q-1-RPT.97 25 . ~.. .; BECA Quarterly Report +.,..". -.....,... July 01, 1996 to September 30,1996 In addition, a comprehensive listing of Internet sites has been distributed to clients and tenants . and has been very well received. The list is being modified to categorize Internet sites by subjects such as trade, environment, government, etc. The BECA Business Cluster is compiling a newsletter as a public relations tool for the Cluster tenants. TItis newsletter will also be placed on the BECA Website when the design phase is completed. The Webpage contractor is currently designing the Webpages and will present the draft fonnats of the pages to the Resource Center staff fOJ: their final review. The Resource Center will contribute articles and newsworthy items to the Cluster newsletter. 16. ADVOCACY AND GENERAL ECONOMIC DEVELOPMENT The cross border environmental marketing specialist continues to contribute to the advocacy for economic development of the San Diego- Tijuana region. She is a member of the Border Trade Alliance, a group that specifically lobbies at the federal, state and locals levels for increased investment in the infrastructure of the region. BETRC's many economic development efforts directly and positively affect the South Bay, including the City of Chula Vista. ,E-~O C:\BECA\MElODIE\REPORTs\Q-1-RPT.97 26 .--.'.----,..--... '--'-- .......- - - ~--_... .-,-.-. - _._..._--_.._~-~---..~..._~ Attachment F 2nd Quarter Report for FY 1996/97 - DISTRIBUTED VIA APRIL 22, 1997 PACKET THE BORDER ENVIRONMENTAL COMMERCE ALLIANCE (BECA) AWARD # 07-49-04062 Quarterly Progress Report 10/01/96 to 12/31/96 - DRAFT - ;:--1 ......~ ' '.' --..--..-....-. · DRAFT ~ . .:: BECA Quarterly Report ""....."1 ...~,,~ October 01, 1996 to December 31,1996 EXECUTIVE SUMMARY BECA Prosµ-am Administration Priorities for the quarter for BECA program administration included further integration of BECA activities with Chula Vista economic development programs; recruiting new tenants; facilitating tenant success; working with BEBC and BETRC staff on facility-related issues; permanently staffmg the BECA Director position; hiring a permanent BEBC Manager; and strategic planning and program evaluation. On November 6, 1996 Dan Stockin was hired as the permanent BECA Director. The recruitment for a permanent BEBC Manager is now in process. During the last several months, BECA has been in discussions with Rohr to explore the potential for the expanded use of Rohr facilities. Coinciding with these discussions, an opportunity arose to partner with several related organizations as part of a major new economic development effort. After extended analysis, BECA ascertained that it was not feasible at this time to co-locate the program with other partners and move to another Rohr building. At the beginning of next year, BECA will begin the necessary maintenance to house additional tenants in its existing building. On November 11,1996, the Chula Vista City Council dissolved the Interim BECA Advisory Board with the understanding that staff would create a Board of similar nature to advise staff. In December a new BECA Advisory Board to advise staff was created. The new Board's membership, like the old Board, reflects the regional and international emphasis of the BECA program. The board's first meeting is scheduled for January 17, 1997. Border Environmental Business Cluster (J3EBC) During the second quarter of FY 96/97 BEBC accepted one new tenant into the Cluster, for a total of 14 tenants. Occupancy at the end of the quarter was approximately 79 percent. The Cluster tenants represent a broad spectrum of sectors within the environmental industry. Services include technology-intensive products, geotechnical services, environmental project consulting, recycling, environmental product distribution, and laboratory testing services, among others. ¡:-~ '\:'~~åI=T " DRAFT ~ ";. :.. ,.,: BECA Quarterly Report ~·C:I """ October 01,1996 to December 31,1996 Border Environmental Technology Resource Center (BETRC) The BETRC staff continued efforts to market BECA programs, including sending out a large mass mailing. Counseling advocacy, and referral services continued to be provided to incubator tenants and outside clients. Staff contributed· significant effort toward helping tenants obtain grant and other funding. Information was also gathered to assist in BECA's strategic planning process. DRAFT F-3 --.. ..--.-..-..,. .--....--.---- DRAFT BECA Quarterly Report October 01,1996 to December 31,1996 BECA PROGRAM ADMINISTRATION QUARTER PRlORlTIES Priorities for the quarter included further integrating BECA activities with Chula Vista economic development; attracting new tenants and clients; redefining the BECA Advisory Board; fIlling key staff positions; working with BEBC and BETRC staff on facility-related issues; and identifying administrative policies and procedures to further increase BECA's efficiency and effectiveness. - ADMINISTRATION BECA Staff The following changes were made to the BECA staff: BECA Director The BECA Director, Geoff Bogart, resigned in May of this year to accept a position related to cross-border marketing, his professional area of expertise. Geoff was replaced on an acting basis by Jeanette Moorhouse, an environmental consultant who was a member of the BECA Advisory Board. On November 6, 1996 Dan Stockin was hired as the permanent BECA Director. Mr. Stockin was the Director of the University of California San Diego (UCSD) Environmental Training Center before joining BECA. He managed the operations and academic functions of six continuing education professional certificate programs, the Environmental Protection Agency Western Regional Lead Training Center, and a contract training unit. He has interfaced with environmental industry leaders and researchers. He has established and maintained partnerships with non-profit entities and successfully pursued funding sources. BECA is very fortunate to be the recipient ofMr. Stockin's knowledge and expertise, especially at this critical juncture in the program. OR, ¡:- -9 3 · DRAFT ~..,.+: BECA Quarterly Report ""~I ..''"- October 01,1996 to December 31,1996 Border Environmental Business Cluster (BEBC) Manager In September, the BEBC Manager, William Snyder left the program to accept a promotional opportunity with a private fIrm. A temporary manager, Stan Schultz, occupied the position from September 6, 1996, through December 12, 1996. During this time, the program actively recruited for a permanent BEBC Manager. - In October a nationwide recruitment for the position was begun. Advertisements were placed for three weeks in the San Diego Union and Los Angeles Times and two issues of Jobs Available. An advertisement was placed in the National Business Incubator and California Business Incubator newsletters, on the Internet, and BECA's web page. Applications were received from around the country, from as far away as Hawaii and Washington, D.C. In December, initial candidates were interyiewed by a panel made of industry professionals and academicians. Three finalists were chosen and final interviews with the Chula Vista Redevelopment Director, Economic Development Director, and the BECA Director were scheduled for January 1997. BECA ADVISORY BOARD On November II, 1996, the Chula Vista City Council approved the dissolution of the Interim BECA Advisory Board. Council approved dissolving the Board with the understanding that staff would create a Board of similar nature that would be advisory to staff. In December a new BECA Advisory Board to advise staff was created. The new board's membership, like the old board, reflects the regional and international emphasis of the BECA program (See Attachment A - Membership list). The board's first meeting is scheduled for January 17, 1997. JOBS SA VED/CREA TEDIRET AINED During the second quarter of 1996/97, incubator tenant companies employed a total of 54 persons. Included are employees actually housed at the incubator, as well as those who were employed by the tenants in "off-site" locations in the San Diego County vicinity. In addition to tenant employees, the program continued to generate jobs indirectly through the purchasing, marketing, and maintenance activities of tenants and the incubator itself. PARTNERSHIP DEVELOPMENT During the last several months, BECA explored with Rohr the potential for expanding the use of Rohr facilities. Coinciding with these discussions, an opportunity arose to partner with .. "I ,;-, F·$" 4 DRAFT .' "'----"',.---" ...--.-"..---- II DRAFT ~~ " ) BECA Quarterly Report ClrCE"'\.'- October 01, 1996 to December 31,1996 several related organizations as part of a major new economic development effort involving an 80,000 square foot Rohr building. This partnership opportunity is described in detail in the section of this report which covers the BEBC under the subtitle "New Strategic Partnership Opportunities" . NA TIONALIINTERNA TIONAL MAJOR FORUMS The BECA Business Development Specialist attended the California Environmental Exports Conference held in downtown Los Angeles on October 8,1996. The conference, with well over 100 attendees, was sponsored by the U.S. Department of Commerce and the Foreign Trade Association of Los Angeles. Lieutenant Governor Gray Davis was the luncheon speaker for the -- event. At the export business assistance panel discussion, the Business Development Specialist made a presentation on the services that BECA can provide to environmental companies interested in cross-border trade. Two attendees expressed interest in BECA cross-border services. In October, the Business Development Specialist attended the White House Re!!ional Conference on Environmental Technology held in Sacramento at the McClelland Air Force Base. The conference goal was to advance a strategy of promoting the development of innovative technologies - through regulatory reinvention, technology development and transfer, and increasing opportunities for small, disadvantaged, and women-owned businesses. Attendees included the U.S. Environmental Protection Agency Region IX, the State of California Environmental Protection Agency, the Secretary of Defense - Environmental Security, the Department ofInterior, and the Office for Science and Technology. BECA staff learned about expanded federal procurement opportunities for environmental companies in 1997. PRIORITIES FOR NEXT QUARTER Priorities for the next quarter will include: Maintenance of Rohr Building 52 BECA has been deferring certain maintenance on its leased Rohr building until a determination was made whether to move the program to another building. Now that the BECA program will continue in Building 52 this maintenance will begin. BECA is currently assessing the building's needs and will establish and implement a maintenance plan in the next quarter. F-t. ~t~,,\..--,.. DRAFT · DRAFT .:> ..... :++ ,..: BECA Quarterly Report ~.lPCI ,....... October 01,1996 to December 31,1996 Strategic Planning During this quarter, BECA has been evaluating the fIrst year of the program, assessing its future needs, and identifying strategies for continued funding of the program past the current grant period. In the next quarter, specifIc recommendations and proposals will be presented including some significant operational changes to the program. Administration Staff and the Interim BECA Advisory Board evaluated structural options for establishing a "permanent" advisory board. It was initially envisioned that this Board would be advisory to Council. The past year's experience has shown that the Board's greatest contributions have come from working with staff. The Board has helped staff coordinate and leverage regional resources, assisted with program marketing, and provided teclmical advice. It was decided that the Board could best serve the program by continuing to act in an advisory capacity to staff rather than to the City Council. On October 11, 1996, the Interim BECA Advisory Board voted to continue the existing board as advisory to staff. On November 19, 1996, the Chula Vista City Council dissolved the Interim BECA Advisory Board with the understanding it would continue as an advisory board to staff (See Attachment A for listing of board members). BORDER ENVIRONMENTAL BUSINESS CLUSTER INTRODUCTION The following report discusses the operations of the Border Enviromnental Business Cluster (BEBC) during the quarterly period between October 1 and December 31, 1996. This report is divided into two sections to reflect these major areas of activity: (l) Status ofIncubator Tenants and (2) update on Facility Planning and Expanded Strategic Partnership Opportunities. STATUS OF CURRENT INCUBATOR TENANTS In the second quarter ofFY 96/97, BEBC accepted one new tenant, ScientifIc Water Solutions, into the Cluster. This is a young company that distributes and installs water distillation, filtration, and sterilization equipment to commercial users. This new addition bringing the total number of tenants in the Cluster to 14, listed below. P-7t 6 .- . "._~-._- -------.-,...-<--<.------,- DRAfT BECA Quarterly Report October 01, 1996 to December 31,1996 TENANT SUMMARY AS OF December 31, 1996 · AC Southwest Materials - Involved in the recycling and reprocessing of plastic materials for end-users on both sides of the US/Mexico Border, as well as in China. In particular, the company has found markets for ill[ types plastics (recycle categories 1 through 7). · Aquakleen - Formally AquaSystems, sells water pùrification systems based upon reverse osmosis technology and drinking water systems which convert ambient air humidity into purified water. · Aztec Reclamation and Recovery, Incorporated - Specializes in recycling and cross- border transportation and disposal of hazardous/non-hazardous waste. - · California Metals and Electronics· A metals and electronics recycling concern that is attempting to break into the Mexican market. · COlEF - EI colegio de la Frontera Norte(COLEF) is a research and degree granting institution which (1) provides information on U.S.-Mexico border issues, (2) trains specialists in environmental areas, and (3) provides binational technology transfer services for environmental infrastructure projects. · Environmental Scientific Products - A minority-owned distributor of environmental and safety products including HazMat Kits, specialty chemicals, and environmentally-benign asphalt alternatives. · Environmental Technology of California (Envirotech) - Sells and services the TF Purifier oil filtration system. This innovative system was the first technology to be certified by CAUEPA's Environmental Technology Certification program. · Metallic Power, Incorporated - A spin-off from Science Applications International Corporation (SAIC), Metallic Power is developing a rapidly-rechargeable zero-emission power source. The technology, originally developed for defense applications, is now being applied by the company to a variety of commercial applications including electric vehicles and small mobile power generators. · ON SITE Environmental laboratories, Incorporated - A a minority and woman owned business specializing in providing real-time analytical data using a variety of mobile environmental testing platforms. · Organic Recycling West, Incorporated - Specializes in providing composting expertise to local governments wanting to establish and operate efficient municipal composting programs. Services range from facility and equipment consulting to designing, permitting, and planning, and/or turnkey operations. ~''¡'!i!''~'''~ 7 ¡:-v tI- ~++ . .,..: BECA Quarterly Report ~""I A\''- October 01,1996 to December 31,1996 · ReWater System, Incorporated - Developer of a unique gray water filtration and irrigation system designed for use in residential and light industrial settings. · Scientific Water Solutions - A young company that distributes and installs water distillation, filtration, and sterilization equipment to commercial users. · South Bay Oil Project - A program funded by the California Integrated Waste Management Board and run by the Urban Corps of San Diego. :rhe project has contracts with a number of local government agencies and private companies for collection, recycling, and proper disposal of used oil, and other recycling products. · Martha, Valdes and Associates - A minority women-owned environmental consulting firm that specializes in solid waste issues along the US/California - Mexico border. Currently, the company has contracts with the City of San Diego ª"d several not-for-profit organizations. Summary of Current Tenant Business Statistics A summary of the survey of the tenants combined business statistics for the quarter is provided below. Type of Business: Stage of BusinesslDate Established: -1L Corporation Pre-fonnation ~ Sole Proprietorship ...1.... 0 to 6 months _ Partnership -L 6 to 12 months _ Limited Liability Corporation ---L 1 to 2 years -L Other (please Specify) ---Í.. 2 to 5 years Non-Profit Area of Business Represented: -X- Research and Development -L Laboratory Services -L Technology Manufacturer ~ Materials Processor _X_Engineering and Consulting Services -X.. Distributor -L Transporter -L Other Service Company -L Import!Export -Ã- Environmental Interest Group _Sales/Marketing _Other (please Specify ) F-9 C;\WlNDO'NS\BECA\REPORTS\Q-2-RPT.97 8 ., "_ __.,..,_._~__u_ ..u_"_ _.___ .~.- . · DRAFT : ~ 'ò.. ,l BECA Quarterly Report ' ~~.ct ~~~,~ October 01, 1996 to December 31,1996 Environmental Sectors Represented: -'L Air Pollution Prevention/Control -L Waste Management ~ Water Treatment/Filtration -'L Waste Minimization _Site AssessmentIRemediation Environmental Law --X- Instrumentation and Equipment -L Alternative Energy Technologies --X-Recycling _ Industria! Ecology --X-Pollution Prevention Natural Resource Conservation ~ AnalyticaIlMonitoring ~ Green Productsffechnologies Environmental Software/Computer Modeling Other Defense Conversion Status: San Diego Region Status: -L Company significantly impacted by defense downsizing -L Company was already located in San Diego County _Founder is a displaced defense worker ---L Company was newly established in San Diego County -L Company uses or plans to utilize defense or dual-use _ Company was re-Iocating to San Diego County technology for commercial applications ---±-- Company was established as a new business division in San Diego _ Company employs significant percentage of displaced County defense workers Ethnic Background (provided on an optionaJ basis): Ownership Status: Native American -1- Minority Owned ~African American -1..- Woman Owned Asian or Pacific Islander ~ Disabled Veteran -L Caucasian _ Other Underrepresented Group ( ) ---L Hispanic Other ( ) · Note: These figures were compiled from the best information available and were taken from data submitted by the tenants. Total number of employees (includes owners) in San Diego County: ~4 Among all people that work for the company (including the owners), number earning: ----L- Less than $5.00 per hour ---1L Between $5.00 and S10.00 per hour ---ª-- Between $10.00 and $20.00 per hour ----1L Over $20.00 per hour Recruitment Efforts. The BEBC continues its recruitment efforts in conjunction with the ongoing marketing efforts being undertaken by the other staff. This includes direct mail efforts targeted at new entrepreneurs and participation in the numerous small business training seminars occurring throughout the County, including the BETRC seminars. Frequent networking with other local business development organizations such as the SBDC/ITC at Southwestern College, the San Diego Business Parthe~iego Regional Business Incubation Alliance, and the Chula Vista, and Greater San Diego C bers of Commerce, among others. ¡: -/0 C:\WlNDQWS\BECA\REPORT$\Q-2-RPT.97 9 II DRAFT ~+ ) BECA Quarterly Report 'IIC'¡,...." October 01, 1996 to December 31,1996 In addition to these efforts, the staff has continued to explore new relationships with university and other research programs involving environmental technologies, as well as partnership opportunities with federal programs sponsoring environmental technology demonstrations. Staff is continuing to "plant the seed" for future relationships with technology-intensive, high-growth- potential companies which tend to create the most high-skill, high-wage jobs over the ßÙd- and long-tenn. STRATEGIC PARTNERSHIP OPPORTUNITIES During the last several months, staff has been exploring with Rohr the potential for the expanded use ofRohr facilities. Discussions began because of BECA's investigation into options to secure wet and dry laboratory areas and small amounts oflight industrial space. Because of the nature of many environmental companies, these types of facilities could play an important role in their nonnal business operations. By providing lab and light industrial space, it was felt that the incubator program might be able to attract and serve a broader set of environmental companies. A mostly unoccupied Rohr facility was identified that might have provided the BECA program with both wet and dry lab space, and a significantly larger office complex. Coinciding with the building discussions, an opportunity arose to partner with several related organizations as part of a major new econoßÙc development effort. The concept was to co-locate several related econoßÙc development organizations with BECA in the same Rohr building. BECA developed a plan for the building as an Entrepreneurial Center in which BECA would co- locate with other entities whose mission was to support small business development. These entities included a small business development center, a small business lender, and an employee training facility. BECA and the City of Chula Vista would lease and renovate the larger Rohr building (82,000) square feet) and sublease half the space to its proposed partners. Rohr agreed to make the building available under the same lease arrangements as BECA's current building: one dollar per year. In December, after much discussion and analysis, it became evident that renovating and subleasing the larger Rohr building was infeasible. The Rohr building was in need of substantial repairs and improvements, and cost estimates were beyond BECA's and the City's financial resources. Also, BECA could not be assured that its tenants would have access to laboratory facilities in conjunction with the building, and potential BECA partners were unable to make £inn commitments to financing the building renovation and on-going building expenses. These three issues contributed to a BECA decision to discontinue pursuing facility expansion at this time; to pursue expanding into the unused second half of its current building; and pursue other partnership options. F-'¡ - ., . ";>If " ~, C:\W\NDQWS\BECA\REPORTs\Q-2-RPT,97 10 _._....~-- - - ---~"'-- ... --...- --... · DRAFT ~ "'.. :+~1; BECA Quarterly Report ~·Cl ..~" October 01, 1996 to December 31,1996 BORDER ENVIRONMENTAL TECHNOLOGY RESOURCE CENTER (BETRC) A. Summary Narratives of Successes 1. EXAMPLE OF A SUCCESSFUL COUNSELING OF A BETRC - CLIENT Metallic Power, a manufacturer and R & D fIrm developing fuel/air cell power sources, celebrated its grand opening on November 20, 1996. The event was attended by approximately 80 local dignitaries and small business assistance providers. City of Chula Vista Mayor Shirley Horton was the keynote speaker and representatives from Assemblywoman Denise Ducheny and San Diego County Supervisor Greg Cox's offices attended. The company's President and CEO, Dr. Jeff Colborn, was presented with a graduation plaque signed by the BECA Director Dan Stockin and Mayor Horton. The event represented the fIrst graduation of a tenant from the Border Environmental Business Cluster. Metallic Power has applied for a $462,000 grant from the Vehicle Allocation Fund to complete research on the fuel/air cell zero-emission power source. The Air Pollution Control District (APCD) support staff recommended approving the grant application. However, the APCD Board voted to award the grant to another applicant. At this time, the APCD Board's recommendation is being reconsidered by San Diego Association of Governments (SANDAG). SANDAG will meet in January to reconsider the recommendations and BETRC and BECA staffwill continue to lend support. In addition, Metallic Power and BETRC and BECA staff are rethinking strategies to obtain fInancing. 2. EXAMPLE OF SUCCESSFUL UTILIZATION OF A COOPERATIVE AGREEMENT The Southwestern College Small Business Development & International Tr¡¡de Center (SBD&ITC) and the BETRC co-sponsored a Dale Carnegie Seminar, "Structuring Communication for a 'Yes'." The seminar held on October 3,1996 at the Mission Valley Radisson Hotel was attended by 62 tenants and clients. The seminar taught the techniques for obtaining positive responses to persuasive presentations. 3. EXAMPLE OF AN INNOVATIVE BETRC ACTIVITY OR PROJECT BETRC staffhas maintained a good working relationship with GeoffBogart, former BECA Director now with Professional Trade Shows. As a result, BETRC was able to secure a complimentary exhibit booth (valued at over $1,000) at the US/MEX Plant Engineering and .. ""!\¡,!-'" F-/2.. 11 C:\WlNDO'NS\BECA\REPORTs\Q-2-RPT .97 · DRAFT i++ . ,..: BECA Quarterly Report ot.c.,."" October 01,1996 to December 31,1996 Maintenance Show. He was also able to obtain sponsorship recognition for BECA. In exchange for the booth, BECAlBETRC chaired a session on border environmental issues at the show. BECA was prominently listed as a conference sponsor in the mass mailings, received publicity in the conference program, and was advertised in signage at the event. The event was attended by several thousand manufacturing plant representatives ITom both sides of the border. Sponsoring the conference session also gave the BETRC staff an excellent opportunity to further strengthen BECA's relationship with the session speaker, Adolfo Gonzalez Calvillo, the Director of the State Office of Environment for the State of Baja California. B. Summary of Achievements in Meeting Milestones 1. INFORMATION CLEARINGHOUSE - The materials in the library are continually expanding. The San Diego Business Journal, Water Conditioning & Purification magazine and the National Trade Data Bank CD-ROM database have been added. The Business Development Specialist obtained the US Navy's Small Business and Innovative Research Grant databases and the Department of Defense's Ballistic Missile Defense Organization manual. The BECA Director donated two textbooks on environmental law and regulations. The library is in the process of reorganizing by medium, i.e., air, water, solid waste, hazardous materials, etc. BETRC staff maintains and upgrades both the Thomas Register Catalog and Company Profile volumes and the pollution prevention resource materials. Library bulletin boards are updated daily as seminars, conferences, classes, and trade lead notices are received. The library computer has been connected to the Internet and is frequently used by the BEBC tenants for research and information gathering. 2. DIRECT CLIENT COUNSELING AND CONSULTATION a. Business Development (planning, management, market development, etc.) BECA Tenants Metallic Power - Provided support to this company in its bid for funding from the Vehicle Allocation Fundi San Diego Air Pollution Control District. Gathered information from the National SBIR Conference in Anaheim in support of their funding application. Investigated investment resources in Thailand and the feasibility of using the company's fuel/air cell as a power source for motorcycles in Bangkok. 28.5 hours F -1.3 C:\WlNDOWS\BECA\REPORTS\Q.2-RPT.97 12 - --..,..~.__."--"-". .....',-_._,------, II DRAFT t·,,, ,) BECA Quarterly Report Æ"..;'E ,....... October 01, 1996 to December 31,1996 Environmental Scientific Products (T & L Distribution) - Prepared the client's financial statements and obtained market information for the company's products. This information, along with cash projections, will be used as the base financial data in developing a business plan. BETRC assigned a marketing consultant to perform market research tasks for the company. 24 hours ReWater Systems - Worked with the client to obtain information for an SBIR grant proposal. Represented the firm in discussions with an U.S. EPA representative at a national conference. Researched Internet data for public and private grant funding for a demonstration project to spotlight ReWater's innovative residential irrigation systems. 20.5 hours Organic Recycling West - Another new tenant to the Business Cluster, this client offers municipalities ways to deal witl1 green waste by recycling it into bulk composting material. Consulted with the client regarding market research data, a draft strategic action plan, and a weigh scale/invoicing system for their yard trimming storage site. A BETRC consultant designed the client's company and product logos. 15 hours AC Southwest Materials - The Business Development Specialist worked with the client on restructuring the company's debts in light of reduced demand for recycled plastic materials. 4.25 hours Scientific Water Solutions - A new tenant in the Business Cluster as of November 4, 1996. Consulting included discussion of this startup company's direction in this early stage of development and a time table to complete both its business and strategic action plans. Appointments were made with a CPA consultant regarding bookkeeping software and setting up a chart of accounts. The Business Development Specialist showed the client how to use the Resource Library computer to design flyers and other marketing materials. 4 hours Aquakleen - Assisted the client in setting up a chart of accounts for the company books and in locating a mailing list of potential Spanish-speaking customers. 2 hours Environmental Technology of California (ETC) -Answered questions regarding the micro enterprise loan program and the application process. Assisted ETC in seeking working capital to finance current operations and explore options to patent, improve, and produce an oil filtration device. 36 hours BETRC Clients Rosscore, Incorporated - This service firm specializes in a vibracoring technology for obtaining nondestructive soil samples. The Business Development Specialist informed the client about the resources available at the Business Resource Center at the Southwestern College's Small Business Development and Intewational Trad Center (SBD&ITC). 2.5 hours . '" "''?1ifi' F-/'¡ . C:\'NINDOWS\BECA\REPORTS\Q-2-RPT.97 13 II DRAFT ~ 1;., :" . ,..: BECA Quarterly Report ~"cr -."" October 01,1996 to December 31,1996 BKM, Inc. - This R&D engineering firm specializes in small energy-efficient, low emission gas- powered engines. The client is seeking funding for the development of a low NO. , two-stroke engine. Met with the firm's principals to assist them in fmding non-traditional sources of financial assistance and cross-border and Latin-American trade opportunities (See part f below). 9 hours EZRA International - A disabled/woman-owned company distributing emission-reducing fuel stabilizers for combustion engines. Provided suggestions and recommendations for company and product logos and the design of promotional materials. 1.5 hours Biotechnics - Markets an environmentally-safe water pond cleanup process to golf courses, schoolyards and fisheries. Wanted information on how best to survey its customers so they could improve service and strengthen their market share. The Business Development Specialist helped the client draft a customer survey. .5 hours GraphiGone - This startup company has exclusive rights to non-toxic cleaning agent formulas for the removal of spray-painted graffiti. The client was seeking sources of working capital that could finance the production of $1 million worth of product monthly. The Business Development Specialist and a BETRC financial consultant met with the principals and outlined various venture capital strategies to achieve the company's expected short-term production goals. Natural Indulgence - Natural Indulgence is a manufacturer and retailer of non-toxic natural personal care products. BETRC staff attended the client's retail shop grand opening in Coronado on November 18, 1996. The client was provided with fmancial projection data for use on a direct bank loan application from Scripps Bank. 3 hours International Environmental Resources - The Business Development Specialist prepared referral letters to the Contract Opportunities Center for CAL TRANS Certification. The U.S. Food and Drug Administration was contacted to illicit information regarding its product labeling requirements. 1.5 hours HM3 - The Business Development Specialist reviewed the client's business plan, tenant application and TRW credit report for possible tenancy in the BEBC. HM3 is both a software developer for hazardous waste inventory tracking and an environmental management consulting concern. 3 hours Stuart Borie - The Business Development Specialist reviewed, with the client, the legal procedures for intellectual property protection for his future products. A legal consultant was assigned for patent searches, reviews, and patent filings. 1 hour Advanced BioTech - Advanced BioTech sought cross-border customs assistance to investigate and mitigate the long delays of its product~ a!^~e US-Mexico border. 8 hours ""k,__"'!iI'ÞO';)'~ ' . F-lr C:\WlNDOWS\BECA\REPORTs\Q·2-RPT.97 14 .__'_..__n___··_··_...__'.____ DRAFT BECA Quarterly Report October 01, 1996 to December 31,1996 Avant Environmental- Avant Environmental is an environmental management consulting and training start-up firm that specializes in site assessments, hazard surveys, and compliance training. The Business Development Specialist provided information on how and where to market their environmental management training services. I. 5 hours Tri-Tech Incorporated - This Chula Vista manufacturer of water treatment equipment requested help in securing fmancing and working capital. The Business Development Specialist reviewed the client's business plan and made recommendations. 1.5 hours b. International Trade/Mexico and Latin America marlœt development BECA Tenants AC Southwest Materials - Tenant was helped with client leads and developing business in Mexico. 2.0 hours COLEF - Tenant received information regarding their non-profit status and possible joint ventures with other groups. 3.75 hours Environmental Technology of California (ETC) - Received information about the US/MEX Plant Engineering and Maintenance Show, the Clean Air Symposium, and the development of Mexican markets. 5.75 hours Martha Valdes & Associates -Assisted with her involvement with the Border Waste Wi$e program and solid waste opportunities in Tijuana. 3 hours Metallic Power - Helped Metallic Power coordinate its presence at the Clean Air Symposium. 6 hours Organic Recycling West, Inc. - Assisted this tenant in developing a potential sludge composting project in Tijuana. 9.5 hours ReWater Systems - This tenant received information and assistance about operations/marketing joint venture opportunities in Mexico. 2.25 hours T &L Distribution - Provided information about marketing opportunities in Mexico. 1.5 hours BETRC Clients Brown and Caldwell - Provided market research assistance, assisted with marketing strategies, and helped with the development of a joint venture opportunity with a Mexican environmental . firm. 3.5 hours F llø,' .. - .....,"'.....-' C:\WlNDOVVS\BECA\REPORTS\Q-2-RPT.97 15 . DRAFT . . "'+. . .. /: BECA Quarterly Report ~.r:. ,....".\ October 01,1996 to December 31,1996 Environmentally Sensitive Products - Counseled the client about marketing and joint-venture opportunities in Mexico. Provided information about the U.S./MEX Plant Engineering and Maintenance Show. 4.75 hours EpTech Group - Assisted the client with contacts for the development of projects in Mexico. 1.25 hours General Power- Assisted with Mexican power project contracts. .5 hours International Environmental Resources - Received information on business development for clients in Mexico. In addition, the principal of IER, Adela Avila Casabosch, completed a 15 hour project on importing environmental products to Mexico and an assessment survey on the needs of the maquiladora industry. 12.5 hours - Pacific Treatment Analytical Services- Received information on possible work in Mexico, applicable regulations, and marketing. 2.75 hours Potential Clients Thirteen hours were spent with six potential clients, primarily companies wanting some information about the Mexican environmental market, as follows: 3.25 hours with Mark King; 2.5 hours with Tope Ayani; 2.75 with Kelly Martin; .5 with Standard Filter; 1.5 with David McIntyre; 1.5 with Gary Bott; and, 1.0 with Biocycles. c. Technical Assistancellnnovation and Technology Transfer One tenant, Environmental Technology of California (ETC) distributes environmentally beneficial industrial products, including an oil filter which substantially increases oil life, thereby decreasing waste oil disposal. BETRC has given ETC considerable technical assistance in developing and designing their own oil filter. Current plans are to submit a patent application in early January. ETC is scheduled to present a business plan for this new product to UCSD's Springboard on January 15 and to participate in a "Concept Forum" in February. Both presentations are directed at securing financing. d. Environmental Regulatory Compliance As reported in several meetings with BECA and City personnel the area of direct client counseling for environmental regulatory compliance has not developed as originally contemplated. The projected staff position of environmental regulatory compliance specialist has not been funded and is not expected to be filled. This function has been assumed by the environmental management sl\ecialist and th~ assistance in this area have F-/7 C \VVlNDO'NS\BECA\REPORTS\Q·2-RPT 97 16 _.,---._--~. -"---'---'- DRAFT BECA Quarterly Report October 01, 1996 to December 31,1996 been forwarded to the San Diego Permit Assistance Center with whom BETRC has a cooperative agreement. e. Financial AssistancelCapital Formation BKM, Inc., a small engine manufacturer in San Diego, requested capital formation assistance from the BETRC. BKM needs financing to produce, test, and demonstrate an innovative pollution-reducing two-stroke engine prototype. The Business Development Specialist, with a BETRC consultant, attended meetings with BKM's key management to formulate a strategy to attract investment for their project. BKM's partners in the project include Daihatsu, Yamaha, and the California State Air Resources Board. The Business Development Specialist supported Metallic Power by attending the public review forums for the Air Pollution Control District Vehicle Allocation Fund (\1 AF) Grants. Staff attended the V AF Staff Recommendation Public Forum in October and the Air Pollution Control District Board meeting on December 18, 1996. At the APCD Board meeting, Metallic Power was not recommended to receive funding from the V AF despite the support ofBECA and BETRC staff. The APCD Board's recommendation will be reconsidered by SANDAG in January and BETRC and BECA staff will attend. f Procurement Assistance The Business Development Specialist referred Scientific Water Solutions and Organic Recycling West to the Contract Opportunities Center for government procurement training or assistance. The Business Development Specialist attended the Small Business Innovative Research (SBIR) Grant Conference held at the Anaheim Hilton on November 13- IS, 1996. Staff attended the conference to represent the interests of the BETRC clients (primarily Metallic Power and ReWater Systems) and to learn more about the grant proposal writing and approval process. g. Minority Business Development Assistance The Business Development Specialist continued minority business development efforts by assisting the following minority and/or woman-owned businesses: Martha Valdes and Associates; AC Southwest Materials; Environmental Scientific Products; EZRA International; and Natural Indulgence. A BECA consultant and a minority/woman business-owner, Adela Avila Casabosch of International Environmental Resources, completed a IS-hour project devoted to an environmental needs assessment of the maquiladora industry. F -I fi C:\WlNDOWS\BECA\REPORTS\Q-2.RPT.97 61 DRAFT ~ ---.. . . 'ò.. . f BECA Quarterly Report .....c.,....'- October 01,1996 to December 31,1996 h. Direct Counseling to BEBC tenants See 2 a-f, above 3. PARTNERSHIP DEVELOPMENT Staff continues to work closely with the Industrial Environmental Association (lEA) of San Diego. BETRC staffwas instrumental in developing, along with Border Progress Foundation, the "Our Borderless Environment" workshop at the annual lEA conference. lEA provided BECA with a complimentary full conference pass (valued at $350 dollars). BETRC staff also plays an important role in the lEA's maquiladora committee. A coo.£erative agreement was drafted and mailed last quarter by the Business Development Specialist to the California Energy Commission's Energy Technology Export Program (ETEP). The ETEP cooperative agreement is currently being reviewed by the Director of the Research and Development division of the Commission. This quarter the BETRC began co-sponsoring small business procurement training seminars and workshops with Contract Opportunities Center (COe) in Mission Valley. While the BETRC has referred clients to the COC since late 1995, this is the fIrst quarter that workshops have been co- supported. Topics covered by these events included "Small Business Administration 8a Program," "Electronic Data Interchange for Department of Defense Vendors," "Doing Business with the Department of Defense," and "CALTRANS CertifIcation Workshops." 4. LINKAGES TO AND JOINT VENTURES WITH MEXICO BUSINESSES AND GOVERNMENT AGENCIES Staff continues to develop its linkage with the State Office of Environment for the State of Baja California, primarily with the Director, Adolfo Gonzalez Calvillo. Mr. Gonzalez has expressed a strong interest in meeting with BECA clients and tenants to provide them an orientation to doing environmental business in Mexico. Staff has arranged for a meeting between Mr. Calvillo and BEBC tenant Organic Recycling West, Incorporated, to discuss the tenant's proposed project of composting sludge from the South Bay International Wastewater Treatment Plant. Staff attended the EcoEntro conference held in Tijuana sponsored by the State of Baja California's College of Environmental Auditors. This group has expressed interest in working with BECA, specifIcally, with companies pursuing the Mexican environmental market. Staff works closely with the Mexican Consulate in San Diego, which continues to facilitate the process of obtaining Mexican work permits for BECA-referred companies. ,& -/ P ,. C:\WINOQWS\BECA\REPORTS\Q-2-RPT.97 18 ---.. _._.,_.~_.-._._-.-.------ DRAFT BECA Quarterly Report October 01, 1996 to December 31,1996 5. INFORMATION DISSEMINATION AND REFERRAL SERVICES The Business Development Specialist and the Project Clerk created a new newsletter, the BETRC Bulletin. The Bulletin disseminates infonnation to the tenants regarding BECA policy changes, important staff contact numbers, new Resource Library additions, and current small business seminars and workshops. Bulletins were produced for November and December 1996. The Business Development Specialist referred Scientifk Water Solutions, Organic Recycling West, and Aquakleen to the Business Resource Center at Southwestern College. Sharon Guillory of Contract Services International, Inc. was also referred to the SBD&ITC for non-environmental business assistance. Metallic Power and ETC were referred to UCSD CONNECT's Springboards for additional consulting assistance. The Springboards will offer a forum for these businesses to connect with experienced business people and experts in the fields of banking, accounting, and law. 6. MARKETING AND PUBLIC RELATIONS Marlœting An ad profiling BETRC's capabilities in the area of cross border consulting was placed in the Environmental Edition of the San Diego Business Joumal. A total offour responses were received as a result of the ad. In December, BETRC sent out 10,500 mailers to small businesses in South County, advertising its environmental management services. BETRC seminars were also advertised in bulk-mailings and press releases. The bulk-mailing list consisted of San Diego manufacturers, environmental finns, business assistance centers, and chambers of commerce. The BETRC's special mailing lists included the San Diego Regional Environmental Health and Safety Training Consortium, Department of Environmental Health-Industry Coordination Group, BETRC clients, BEBC tenants, and the BECA Advisory Board Members. BETRC staff distributed fliers on a regular basis at standing and ad hoc committees and meetings. Southwestern College's SBD&ITC distributed BETRC fliers in their monthly distribution packets. Public Relations BECA sponsored, with the Citizens for Clean Air Policy, the Alternative Fuel Vehicles: A Clean Air Svrnl)osium on December 13, 1996. The symposium infonned the public about alternative fuel solutions and current alternatives and their potential markets. Jeanette Moorhouse, Acting BETRC Manager moderated the "Emerging Local Technology and Businesses" panel, and Jim Graham, Business Development Specialist was a panelist. Other staff lent support by staffing the BECA booth and attending the conference sessions. F-:¿o C:\WlNDOWS\BECA\REPORTS\Q-2-RPT.97 19 . DRAFT .: "'.. :++ . ...,,+: BECA Quarterly Report I·'a #,,,,,\ October 01, 1996 to December 31,1996 BETRC staff attended the U.S. EP A Border XXI Town Meeting held at the San Diego Princess Resort Hotel on December 3, 1996. A draft final report entitled "US!Þ.1exico Border XXI Program - Framework Docwnent" was presented. The meeting provided a public forum for high level responses from both sides of the border to the draft docwnent. BECA co-hosted the event with San Diego Gas and Electric, the U.S. Environmental Protection Agency, the Greater San Diego Chamber of Commerce, the Institute of the Americas, the Sierra Club, and the World Affairs Council. BETRC obtained a client and a potential environmental consultant as a result of BECA's participation. BETRC/BECA exhibited at the U.S./MEX Plant Engineering and Maintenance Show on November 20 and 21. BECA also sponsored a session on border environmental issues. Refer to Section A.3 for further details on this event. BETRC/BECA was instrumental in organizing the "Our Borderless Environment" workshop held at the annual lEA conference on November 19,1996. The workshop was sponsored by the US Mexico Border Progress Foundation and the Institute for Regional Studies of the Californias. The program focused on U.S./Mexico border issues. Speakers included John Wise of the U.S. EP A; Lie. Abraham Nehmad, Director of International Affairs for the Mexican Ministry of Environment, Natural Resources and Fisheries; and Adolfo Gonzalez Calvillo, Director of the State of Baja California's Office of the Environment. The BECA program was marketed to these and other speakers, as well as attendees. On October 10, 1996, BETRC staff made presentations at the California Environmental Exports Conference at the Biltmore Hotel in Los Angeles. The conference, sponsored by the U.S. Department of Commerce, Office of Environmental Exports and the Foreign Trade Association of Los Angeles, promoted state, federal, and private sector environmental export assistance programs. Jim Graham, BETRC Business Development Specialist, marketed BECA's cross- border and business assistance services to an audience of approximately 100. BETRC staff attended the Border WasteWi$e Conference on December 5, 1996. The WasteWi$e project is a binational public-private partnership that helps businesses in the San Diego- Tijuana region with waste reduction and recycling. Program sponsors are the City of Tijuana and San Diego, California Integrated Waste Management Board, U.S. EP A, SAlC, Universidad Autonoma de Baja California, and San Diego State University. The conference highlighted the successful waste minimization and recycling efforts of manufacturers in the region, including Hasbro, Plantronics and SONY. BETRC staff attended the EcoEntro seminar on November 14, 1996 in Tijuana, Mexico. EcoEntro was sponsored by the State of Baja California's Association of Environmental Auditors. The seminar focused on the environmental audit process, the environmental rules and regulations that apply to the audit process, and the recent changes to the federal environmental F" - :1..1-- ~ C:\1NINDOV\IS\BECA\REPORTS\Q-2-RPT.97 . .--.-- - -"----_._---- DRAFT BECA Quarterly Report October 01, 1996 to December 31,1996 law. On October 17, 1996, staff attended the arumal Economic SuInmit "Economic Prosperity through International Cooperation" sponsored by the South County Economic Development Corporation (EDe) and the Tijuana EDC. The summit brought together key economic development specialists from both sides of the border. It featured sessions and round-table discussions on issues, such as "Technology Without Borders", "Supplying the Maquiladoras in the 21st Century", and "The Califomias' NAFTA Update". Staff attended the San Diego- Tijuana Economic Review, 1997 Economic Outlook on November 20, 1996. This event was sponsored by San Diego Dialogue and El Colegio de la Frontera Norte (COLEF). Key regional researchers presented an overview of the region's 1997 economic outlook. The project was conducted jointly by research institutions fr0.!ll both San Diego and Tijuana and demonstrated the closely tied economies of these two cities in two countries. 7. GROUP TRAINING A total of 6.5 hours of BETRC group training took place during Q-2, year 2 and included two 2 seminars and one brown bag presentation (see table below). The BETRC/BEBC brown bag presentations are free 1.5 hour lunch discussions with outside professionals and our clients. The brown bag presentations are promoted to BETRC clients by fax and BEBC tenants with fliers. Date Hours Attendees Tenants Title 10/0 1/96 1.5 62 4 "Structuring Communication for A 'Yes'" - Dale Carnegie 10/09/96 3.5 7 1 Hazard Communication Train-the- Trainer (Starting a Worker Health & Safety Program) 10/23/96 1.5 5 I Business Financing for the 90's Mel DaCosta, CPA, continues to give on-site financial statement and small business advice to BECA clients and tenants one day each month. 8. NATIONALIINTERNATIONAL MAJOR FORUMS The Cross-Border Environmental Marketing Specialist participated in several major forums, including the U.S./MEX Plant Engineering and Maintenance Show, the lEA Conference, the EP A Border XXI Town Meetin oEntro. All of these events were previously described '~t~:;, P-2.~ C:\WlNDOVVS\BECA\REPORTS\Q·2-RPT .97 II DRAfT .: ..... ~++ ..: BECA Quarterly Report ~.c. ....."~ October 01,1996 to December 31,1996 in this report. 9. INNOVATIVE PROJECTS After considerable discussion a Technology Transfer Agreement was negotiated with Rohr. TIùs Agreement covered the work to be done by BETRC to substitute a more benign chemical for that which is currently used, hydrofluoric acid. The proposed agreement was submitted to BECA and Southwestern College for legal review on November 14, -1996. Students from the tech prep international business classes at Southwest High School have volunteered to work with some tenants, as well as the BETRC. The students have been trained for 8 weeks in business basics and most are bilingual in English/Spanish and are computer literate. - 10. STRATEGIC PLANNING BECA began a series of meetings and infonnation gathering as part of a strategic planning process. To prepare for these sessions BETRC devoted considerable effort to assemble a clata book which contained background on the environmental industry in San Diego, analysis of BETRC consulting history, and preliminary assessments of potential areas for increased scope of BECA services. BETRC also constructed a matrix of all known San Diego organizations that competed with BECA in the areas of business consulting, environmental assistance and cross border consulting. 11. PERSONNEL MANAGEMENT In October, all BETRC staff attended the Dale Carnegie workshop on "Structuring Communication for AYes". The workshop was successful and a follow-up workshop is planned for February 13, 1997. Joyce Sheean, BETRC Senior Project Clerk, resigned on December 4, 1996, her last day being January 3, 1997. Until the college goes through its formal hiring process, the Project Clerk will fill the Senior Project Clerk position. A full-time, hourly Project Clerk will be hired to temporarily fill the Project Clerk position. The fonner BETRC student worker was hired as a part-time, hourly Clerical Assistant I on January 6,1997. The formal job announcement posting is expected to occur in the following quarter. The pennanent BETRC Manager position is in its final stages of the hiring process. Interviews have concluded and the position can be filled in the near future. ¡:: - :2.3 ..... C:W\/lNOO\'VS\BECA\REPORTS\Q-2-RPT.97 22 -.-.--..-- DRAFT BECA Quarterly Report October 01,1996 to December 31,1996 BETRC staff has participated in meetings and seminars to remain current and qualified in their fields. The table below is a complete listing of training. BETRC STAFF TRAINING FOR Q- 2, YEAR 2 Date Training Title Hours Total Staff Member Hours 10/02/96 Structuring Communication for 2 10 Veronica Gomez, Jim Graham, A "Yes," Dale Carnegie Don Kowal, Martina Peinado & Workshop - Mission Valley Joyce Sheean 10/08/96 White House Regional 8 8 Jim Graham Conference on Environmental Technology - Sacramento 10/1 0/96 California Enyironmental 8 8 Jim Graham Exports Conference - Downtown Los Angeles 11108/96 How to Communicate with 6 6 Veronica Gomez Confidence - Mission Valley 11113-15/96 National Small Business 24 24 Jim Graham Innovation Research (SBIR) (3 days) Conference - Anaheim 11114-15/96 Sustainable Development at the 10 10 Veronica Gomez Border - Tijuana, Mexico (2 days) 11117/96 Economic Summit VI - 6 6 Veronica Gomez Coronado 11119/96 Our Borderless Enyironment 8 8 Veronica Gomez Workshop, lEA - San Diego 11/20-21196 U.S./Mexico 96 Plant 12 12 Veronica Gomez Engineering & Maintenance (2 days) Show - San Diego ll/21196 First Annual Economic Outlook 2 2 Jim Graham for San Diego/Tijuana Region - San Diego 12/03/96 U.s. Environmental Protection 5 10 Veronica Gomez & Jim Graham Agency Town Meeting - San Diego 12/05/96 San Diego- Tijuana Border 8 8 Veronica Gomez . Waste Wi$e Conference - Tijuana, Mexico . Total BETRC Staff Training Hours 112 ~-;¡..ý C:\WlNDQWS\BECA\REPORTS\Q-2-RPT.97 . DRAFT ~ 10.. . . 7 'ò",+ .. .. ~.....~ BECA Quarterly Report ~..". ....." October 01, 1996 to December 31,1996 12. PARTICIPATION IN REGIONAL AND STATEWIDE FORUMS AND BOARDS AND COMMITTEES The Cross-border Environmental Marketing Specialist is very active in the lEA, specifically its maquiladora committee, which was instrumental in developing the "Our Borderless Environment" workshop at the IEA conference. The maquiladora committee will be joining efforts with the Western Maquiladora Trade Association to create ajoint committee that will address the environmental needs of the maquiladora. Staff also continues to participate in the Border Trade Alliance, and plans to participate in its annual conference that will be held in San Diego in March 1997. The Environmental Management Specialist attends monthly meetings of the Industrial Environmental Associations (lEA). BECAlBETRC must be an unofficial member as membership is limited to industrial organizations and industry consultants. However, BETRC has been active in advising lEA of recent Project Excel activities of the San Diego County Department of Environmental Health. The BETRC Business Development Specialist attends San Diego Regional Business Incubator Association meetings on a monthly basis. This association consists of managers of the region's business incubators and small business service providers and consultants. 13. ENVIRONMENTAL BUSINESS NEWSLETTER AND OTHER BETRC PUBLICATIONS A BETRC bulletin was designed and produced by the BETRC Project Clerk and the Business Development Specialist. The BETRC bulletin typically consists offive sections: "BECA Staff," "Service Alert," "Business Tips," "Information for Tenant," and "General Information" (see table below). Copies of the November and December 96 BETRC Bulletins are included in this report as Attachment B. BETRC Bulletin Sections "BECA Staff" This section has the BEBC and BETRC phone numbers and the latest news on staff members. "Service Alert" This section announces the holidays the BETRC will observe or any interruptions in BETRC services. "Business Tips" Each month we give a business tip on how to conduct business more efficiently. "Information for Tenants" This section announces BEBC tenant meetings, BETRC seminars, tenant news, or anything related only to tenants. F-;¿~ C:\1N'INDOWS\BECA\REPORTs\Q-2-RPT.97 24 - -.-....,.-- .--.,.--...-----.-" II DRAFT ~ .,.... ~. ..: BECA Quarterly Report "'.t>"C'€"\.'"'" October 01, 1996 to December 31,1996 BETRC Bulletin Sections "General Information" This section has general information that may pertain to the public, such as BECA board meetings, new items in the library, and eyents in the county. Another BETRC publication that is currently being put together is the "BETRC Handbook." This handbook has three sections that consist of the BETRC's specialist biographies, the name of each BETRC consultant and a brief description of their expertise, and otlÌ.er BETRC services. 14. ADVOCACY AND GENERAL ECONOMIC DEVELOPMENT Staff participated in two economic development events. These were the "Economic Prosperity through International Cooperation summit" sponsored by the South County Economic Development Corporation (EDC) and the Tijuana EDC, and the San Diego- Tijuana Economic Review, 1997 Economic Outlook, sponsored by San Diego Dialogue and El Colegio de la Frontera Norte (COLEF). F -~" C:\WlNDOWS\8ECA\REPORTS\Q-2-RPT.97 25 II DRAFT ¡ +~ . . BECA Quarterly Report 0",+ ....... ""1 ,.\.\.~ October 01,1996 to December 31,1996 ATTACHMENT A . MAILING ADDRESS NO. NAMElTITLE ORGANIZATION PHONE/FAX 1. Board Shirley Horton City of Chula Vista 276 Fourth Avenue Member Mayor Chula Vista, CA 91910 ------------- ------------------------------- ---------------------------------- .!'.!i9!1_~_~~!:.5_IJ.:I.:I,;,.!'~~Z~:~3!.P___ 1. Alternate John Moot City of Chula Vista 276 Fourth Avenue Councilman Chula Vista, CA 91910 PHONE: 691-5044; FAX: 476-5379 2. Board Art Sellgren Rohr Inc. 850 Lagoon Drive Member Manager, Corporate Facilities, Chula Vista, CA 91910 Resources & Industrial Engineering .!:1:!9!1_~_~~!:3}_4.!Ii.!'~_~~~~~Z!__ ------------- ------------------------------- ---~------------------------------- 2. Alternate Wendy Longley-Cook Rohr Inc. 850 Lagoon Drive Manager of Corporate Environmental Chula Vista, CA 91910 Affairs PHONE: 691-2471; FAX: 691-3241 3. Board Grant Ferrier Enyironmental Business International (ESI) P.O. Box 371769 Member President San Diego, CA 92137-1769 f-------------- ------------------------------- ----------------------------------- .!:1:!9!1..~_~~~!_6.!!.?,;,.!'~_~~~5!_~__ 3. Alternate Stewart Borie Quantum Environmental Technologies 14257 Half Moon Bay Drive (affiliate of EBI) Del Mar, CA 92014 PHONE: 481-7423; FAX: 535-1029 4. Board Richard Kiy Science Applications International SEND TO BOTH ADDRESSES: Member Vice President Corporation (SAIC) de Mexicc Ave. Ejercito Nal. #926-201 Colonia Polancc, 11540 Mexicc D.F. 10260 Campus Point Drive San Diego, CA 92121 PHONE: 011 525 580-0523 ----------------------------------- FAX: 011 525 580-0530 ------------- ------------------------------- ------------------------------ 4. Alternate Andrew Lissner Science Applications International 10260 Campus Point Drive Director Corporation (SAIC) San Diego, CA 92121 PHONE: 535-7471; FAX: 535-7705 5. Board Frank Urtasun San Diego Gas and Electric 9965 Carroll Canyon Road Member Supervisor, New Business San Diego, CA 92131 Development Services .!:1:!9!1_~_~2_1.:~~.!'~_~~~~~Q!___ ------------- ------------------------------- --------------~-------------------- 5. Mernate Pat Barnes San Diego Gas and Electric 436 H Street Senior Public Affairs Representative Chula Vista, CA 91910 PHONE: 482-3352; FAX: 482-3349 6. Board Vacant Greater San Diego Chamber of Commerce Member PHONE: ; FAX: 6. Alternate Vacant PHONE: FAX: .....t'.;ii'f¡f!,ø F-~7 C:\W1NDO\^JS\BECA\REPORTs\Q-2-RPT.97 26 -,-.-. . - ._.-..- ,-_._---,-'-- DRAFT BECA Quarterly Report October 01, 1996 to December 31,1996 MAILING ADDRESS NO. NAME/T1TLE ORGANIZATION PHONE/FAX 7. Board Elsa Saxod U.S./Mexico Border Foundation 1615 Murray Canyon Road, Suije 100 Member Executive Director San Diego, CA 92108 ------------------------------- ----------------------------------- PHONE: 291·1574; FAX: 291-3827 ------------- ~"----------------------------- 7. Alternate Kaare Kjos 2838 Granada Ayenue Binational Developmental Consultant - San Diego, CA 92104 PHONE: 285-1725; FAX: 285-9432 8. Board Dave Carey UCSD Environmental Services and University of California, San Diego Member Director Education Extended Studies and Public Programs 15373 Innovation Dr., Ste. 105 La Jolla, CA 92128 ~ .!:1::!º~_~_"-5_1.::~~~~:...~~~~~~.?]..9"O___ ------------- ------------------------------- ---------------------------------- vacant vacant vacant vacant ------------- ------------------------------- ---------------------------------- ------------------------------ 9. Board Denny Cuccarese South County EccnomicDevelopment Member President Council PHONE: 336-2474 1200 'A' Street FAX: 336-1066 National City, CA 91950 10. Board Tom Behr San Diego Regional Technology Alliance Cubic Corporation Member Group General Counsel P.O. Box 85587 San Diego, CA 92186-5587 PHONE: 627-4528;FAX:565-6038 ------------- ------------------------------- ----------------------------------- ------------------------------ 10. Alternate Kirk Mather San Diego Regional Technology Executive Director Alliance 1250 Sixth Avenue, Suite 120 San Diego, CA 92101 PHONE: 685-1476;FAX:685-1484 11. Board Linda Pratt San Diego County Department of P.O. Box 85261 Member Program Manager Environmental Health San Diego, CA 92186-5261 ------------- ------------------------------- ----------------------------------. .!:1::!º~_~_~~~::.2.f].?~£.!'2S_~~~:.2_~.!!__ 11. Alternate Chris Gonaver San Diego County Department of P.O. Box 85261 Director Environmental Health San Diego, CA 92186-5261 PHONE: 338-2201; FAX: 338-2848 F - Â" C:\WlNDQINS\8ECA\REPQRTS\Q-2-RPT.97 27 03/28/9i FRI 13:44 FAX 6194984969 BEBC-BETRC 141 001 BECA Technology Resource Center , ~ v VOLUME I, NUMBER 1 NOVEMBER 1,1996 'B&eAV~ STAFF AND PHONE NUMBERS Patricia Cerda, BEBC Administrative Assistant/Office Manager ............................... 498-4960 Veronica Gomez, BETRC Cross-Border Marketing Specialist. . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . 498-4911 Jim Graham, BETRC Business Development Specialist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 498-4973 Don Kowal, BETRC Environmental Managemeut Specialist .................................. 498-4962 Jeanette Moorhouse, Interim BETRC Manager.. .. . .. .. .. . . . .. . . .. . . . . . . . . . . .. . .. . . . . . . .. .. 498-4964 Martina Peinado, BETRC Project Clerk. .. .. .. .. .. .. .. .. . .. .. .. .. . . . . . . .. . . . .. . . . . .. . .. .. . 498-4965 Stan Schultz, Interim BEBC Manager ................................................ -- . . 498-4966 . Joyce Sheean, BETRC Senior Project Clerk ............................................... 498-4970 WELCOME BECA'S NEW DIRECTOR! Dan Stockin, the new BECA director, will start November 4. His last job was Director of the UCSD Environmental Training Center and he has significant experience with non-profit entities, government agencies , and industry. Let's give him a big welcome and we'll provide more info in our next bulletin. VBETRC OFFICE HOURS 8 a.m.-5 p.m., Monday-Friday ._.ow ~~7¥ PRICJNG YOUR PRODUCTS Pricing below competition means beating the competitor's price. Many vendors have been very successful using this pricing strategy, and they have greatly increased sales. Because this pricing strategy reduces thc profit margin per sale, a flftll needs to increase its sales and reduce costs by: · Obtaining the best prices possible for products. · Locating the business in an inexpensive area or facílity. · Controlling inventory closely. · Limiting the product lines to fast.selling items. '. Designing advertising to concentrate on periodical price specials. · Offering no or limited servicesbécause they increase operating costs. Sewtu ~ NOVEMBER HOLIDAYS '--/ The BETRC will observe the fol1owing holidays: 1 ~-7..' :.- ."It<, A~,'"' ~ - ....-..__..._.~"._..._.._.....,-_.- 03/28/97 FRI 13:44 FAX 6194984969 BEBC-BETRC I¡¡] 002 VOLUME 1, NUMBER 1 NOVEMBER 1, 1996 Mo.nday, Noyember 11, 1996 - Veterans Day Thursday & Friday, November 28 & 29, 1996 - Thanksgiving Holiday ~ 7~1~ TAX & FINANCIAL STATEMENT REVIEW Mel DaCosta will be at the BEBC facility on Friday, November 8 to reyiew your tax and financial statements. Take:> advantage of this fr"" opportunity. Make an appointment with Martina by November 6. FREE - DALE CARNEGIE LAB WORKSHOP FOR TENANTS The BETRC will pay $1 10. for your Dale Carnegie:> Lab Workshop registration fee an Friday, November 15, 8: 15-1 0.:45 a.m. at the:> Dale:> Carne:>gie Facility. This offer is only for BEBC tenants. During the follow-up workshop, you will structure your own "mini-selling" presentation and give it while being caached by Dale Carnegie Professianals. tn. your presentation yau will bring together all of the skins of planning, opening, closing, providing evidence, mannerisms, visuals, and handling questio.ns. Your presentation will be videotaped, and all participants will receive their own taped prese.ntation at the end ofthc class. This follow-up worksho.p is available en a first came first-served basis to the first 15 participants that register. Please register with Martina by Nevember 8. POSTAGE METER We have a postage meter fer BEBC tenants in the BETRC area. Please leave your outgoing mail with Patricia, Jeyce, o.r Martina, and we will po.st mark it for you. Patricia wi1\ bill you once a month. INTERNET We now have free Internet access for tenants & clients in the library. Ask any of the BETRC staff for help. '-OffiCE EQUIPMENT The BETRC has office equipment that yeu are welcome to us~. We have a typewriter, paper cutter, heavy duty 3-hale punch, heavy duty stapler, and a document shredder. LmRARY COMPUTER Y eu may use the library's computer during BETRC's office haurs, 8 a.m.-5 p.m., Monday-Friday. After turning on the computer and monitor, at the C:\> type "win." This will bring take yeu to the Program Manager. The saftware available are: Internet, Nctscape, Presentatians 3.0, Quattro Pro 6.0, WordPerfect 6.1, Excel 4.0, PageMake:>r 5.0, and Corel Draw 3.0. REQUEST OR SUGGESTIONS! By mid-November, we win have fanns available for you to make rc:quests and suggestions. They will be located in a wall-pocket out side:> of the BETRC door. After you make your request Or suggestion, please give the farm to a BETRC staff member. The fOnDS will be reviewed and addressed at the BECA staff meetings. ~1~ GRAND OPENING - METALLIC POWER, INC. Dr. Jeff Calborn, CEO invites all BECA tenants and staff to attend the Metallic Power, Inc. Grand Opening. Dr. Calborn is a former BEBC tenant that is an his way to becoming the "new leader in products for pollution-free power." The special guest speaker is the Honorable Shirley Horton, Mayor, City ofChula Vista. Mark your calendar for Wednesday, November 20,3:30-5 p.m., at 1547 Jayken Way, Suite A, Chula Vista. Please RSVP by November 15, (619) 628-8000. -......I 2 F-.30 .to¡;' 03/28/97 FRI 13:45 FAX 6194984969 BEBC-BETRC igIoo3 VOLUME 1, NUMBER 1 NOVEMBER 1,1996 WSINESS RESOURCE CENTER (BRC) '-../ The Southwestern College Business Resource Center (BRC) is a satellite office of the U.S. Small Business Administration's BRC in San Diego and i. managed by the Small Business Development and International Trade Center (SBD&ITC). The BRC is a small business library providing publications, videos and computers to potential and existing businesses at no charge. Computen! are available for clients to use. There are computerized CD-ROM databases that provide infonnation on all aspects of business development, marketing, demographics and economic trends. The BRC is free to the public. You may obtain a free one day parking permit ftom the BETRC. For more information on attending an orientation to the BRC, see Jim Graham. LIBRARY BULLETIN BOARD Visit the Library'. Bulletin Boardl The board contains seminar(workshoplconference announcements, trade leads (air poliution, water, solid waste, environmental, etc.), newspaper c1ippings and lender information. We post new items on n weekly basis. OPPORTUNITY NOTICE The South Coast Air Quality Management District's Technology Advancement Office administers a cost-shared program to develop, demonstrate, and commercialize progressively lower-emitting technologies and clean- buming fuels. !fyour company can offer services that are relevantto.their program, they are looking for companies to be listed in their database. For more infonnation see the announcement posted in the library's bulletin board. GRANT OPPORTUNITY - ZERO EMISSION VEffiCLES If you're thinking of buying a new car, the San Diego Air Pollution Control District (APCD) has received grant funding fi'om the California Energy Commission (CEC) to provide incentives to purchase Zero Emission '-" Vehicles (ZEVs). Buyers of electric vehicles will rcceiye $5,000 dollars in incentives towards their purchase. For more information caIl APCD, (619) 694-3332. WHAT'S NEW IN THE LIBRARY! Municipal Solid Waste Management. . . . . . .. . . . . . , . . . . . . . . . . . . .. . . . . . . . . . . .. September/October 1996 Solid Waste Management periodical published six times a year. Small Business Innovation Research (SBIR) Program ................................. Fiscal Year 1997 Current listing of Department of Defense (DOD) research solicillltion.. for J 997. San Diego DaìlyTranscript . .. .. . .. . __ . . . .. . . . .. .. .. . .. .. .. .. . . . . . . . . . . . .. . .. . .. . . .. . . . . . .. Daily Pollution Equipment News. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . _ .. October 1996 Environmental Protection Solutions. . . .. .. . . . .. . . . . .. .. . .. .. .. . . . . . . .. .. . . . . .. .. . . ... October 1996 Chemical Engineering .............................. _ . . . . . . . . . . . . . . . . . . . . . . . . . . . .. October 1996 CONGRATULATIONS! We are proud to announce that Amal Bernal, BElRC client, and Linda Austin celebrated the grand opening of their store, Tesoro Mio, on October 18,1996 in Coronado. They sell natural environmentally-friendly women's accessories and gifts. Check them out for Holiday gifts! 'C-/ 3 I=" -.3 I "'....--.-... - .~---~_._.._--_..- 03/28/9; FRI 13:45 FAX 6194984969 BEBC-BETRC 141 004 VOLUME 1, NUMBER J NOVEMBER J, 1996 NOVEMBER 96 EVENTS '-".....................................-----..-..--.....-...............................-..---.-.-............-..............-.....................................---.........,................., ¡ NOVEMBER 1996 CALENDAR OF EVENTS ¡ i -.._........_...........__._.....___...._...____.___...-:_......-....-":"..-.......-.-..-..--...-¡...-........-...-.-......---,............-........-......--..'t..................-! ! lTILE/IOPIC ¡ DATE ! TIME ¡ LOCATION i CONTACT ¡COST ¡ I.~..._..._........_..._._._·__..___·······_·___·___·....·-···-··-········-··--···-----·-..·-··4···....-·....·..-····---.--.....--............................--....--............ ! A Svategic Economic Development Vision ! 11103 ! 12-2 p.m. ¡ Imperial Bank Towc:r ¡ SDSU ! · ¡ ! for the Arizona (U.S.}-SonOOl (Mexico) i ¡ ! Large Co'1fcrcnce ¡ (619) 594-2289 ¡ ¡ 'Re' Semi ,¡ 'R 2ndFI' .. ¡glon oar !: ¡Dom. DOt': ¡ i ¡ !! i 70¡"B"St. i ¡ i i !! ËSanDil.go i ;: i·····..·_··_·······.._~-----~····..·~···....-~·····..·..····.!...................J..-.-..-.....................-.....¡....-..--__................n_...~._........_.__..............._...~.._.._..........¡ ! Pollution Control '96 Trade Mission &: ¡ 11/04- ¡. t Monterrey, Mc:ico i Mark P~m, ¡ . i i Technical Seminar i 11108 i l City, GvadaCojara, i World Trade Cenlc:r ¡ i ~ ! i i Mc:ico i (619) 557-2962 i I ,........................---.-----...................-........"1..-......·....·¡-·---···..·-·....·-..·....·..-t-------·····........··..··..·,··....-··-···-···....···..·....···':·..··....·····..·1 I How to Start and Mmagc Your Own Business ¡ 11/0~ i 8:30 ø..m.-4 p_m. ! NatiooalUniversity ¡ SCORE 1$30.! ! ! ¡ i 2022 UnivusjryDr.. ¡ (6t9) ~~7-7272 i i I ! Ë i Rm.306! i i ! ¡ I i YisM ! !; i....·--··-·-····---..-......-..·...···....·..·..·······..·..·¡·..·--.......-i-··...._.._.._···_..·_..·..···-!-·.....__···..··~·..··....····i·~...-......----..................~....--.........~ ! How to do BusioföSS with: U.S. Naval Public f 11/05 i 9-1l a.m. I Contracting i Cindy ]am~ ~ FREE ! ¡ Works Center, Marine Corps~it Dcpo~ i! ! Opportunities Center i (619) 685-2960 ¡ ¡ : I'" I. ¡ Camp Pcndletoo, NA V.F AC & NRAD ¡! ! (COe)! ¡ ¡ ; BECA Sponsored ¡ ¡ ¡ 3350 Marlœr SL! ¡ ¡ I ..... I i i! ¡S<mDiego ~ ¡ i 1··-·--..·..··-···..·......··..·....·..·····..·..-···..·..·········--!-..····_···i..····~_..··..··-_...··_···_-··_;··....._..·..·......·-..·_··_···t-···..·..-..·..···..···....·..····1·~·--·..-···1 i Business Fioancing in the 9O's i 11/06 i 9·1 t a.m. ¡ Conlracûng i Cindy lames ! FREE ! ! 8.&CA Sponsored ! i ¡ Opportunities Center ¡ (619) 68~.2960! ! '. ¡ ¡ i (COC) ¡ i i '-..-I ¡ ¡ ; 3350 MarlœrSI. i ! ¡ · .. I I I' i j ¡ ! ScmDiego ¡ ¡ æ I_....._..................._...~.........___...........____._.....I......_..........1.............._...___............1......................................~..........................._..........._____..........J I . I : I : I ¡ EmployerlPayroll Tax Workshop ! 11/06 ¡ ~9 p,m. ! SDSU. Gateway i (619) ~94-5152 ¡ $49. ¡ ! !! ¡Center i !! Z I'" I: ¡ ; ¡ i Comer of Campanile I ! i · I..·· . ! !! i Dr. &HardyAv~_ Ii! .._....._......................................._.................__..___.._........._......................_..._...__..........._..._............._.__......................~..............._.__...._..............01 · . I . . ., ! Women In World Trade ¡ 1110; ¡ ~:30-9 p.m. ¡ U.S. G.....t Hotel ! (619) 736-6506 i · i ! Fourth Annual Trade Consul Event: Focus on ¡! i i i! i La.tinAmerica ! i ! ! ~ i i··-·..--··.............·..........·..··...............·..·...··..·.....·...:.......·...··....·......................-.............-................................-......,..........-..........................,................., i Basic Bookkeeping and Financial Statema¡ts i 11/07 ¡ 8:30 a.m.-S p.m. ! NarlonaJ Un¡v~ty ¡ Delores Braswell i $30. i ! i i ¡ 4007 Camino d.1 Rio ¡ (619) ~57·7250 ¡ ! ¡ ! ¡ ¡ Sautll, Room. 410 I I æ !. ! I i San Diègø-Mission ¡ ~ i ! i!! Valley i i £ I._..._..._......................_._.._.._.............~..........I..................,......__..._........................d.............._._...-..........................__......__.._....._........................ j : I : : ; i ¡ How to Start and Manage Your Own Business ¡ 11109 ¡ 8:30 LDL-4 p.m. ¡ UCSD ¡SCORE ¡ $30. ¡ ¡ ¡ i ¡ 600 W..t Broadway. i (619) 557-7272! ¡ ¡ i i jRm.211,SaJ1Ðiego i ¡ ~ .....-..-.-------......---..................................-........-..-.---...........-.................................-.........-.......-........................-.-........................-............-..... I HowtoStart3DdManageYourOwnBù.-,~in.,ss i 11/12 i 8:30a.m.-4p_m. ! NMionalUniversity ¡SCORE j $30. i I I . . Z i ¡ i ~ 4007 Camino <:kl Rio ! (619) 557-7272 ¡ i i i I i South. Rm. 410. San ! ; I : : i I DI. . :; ¡ ! ¡ I ego·! :! !..---..-...-..-..-..----...-.........-............-...-'!.....-..·..··-r----··-·-···-···....~......··!-··_····_-······..·······..·····"f..··_..-·_····-·....·..·..···....·~·..··....·_·····i . . t I .. l1iowtoUsetheNatianaITradCDBb\Bank, ! 11/12 i 9:30-11;30ø..m. ¡ Southwc;stcm i SBD&ITC ~ $15_ ¡ ¡ ATI.S. and OthçrEJectronlcTrade Leadond ¡! ¡ Collcgc,Rm.162S ¡ (619)482-639/ ¡ ! : Electronic Lead and Research SOUIees for ¡ ¡ ¡ 900 Otay lAk. Rd.. ! ¡! '-...../'i Cc:ntcr Clients. ! ¡ i CJrula Vista i ! i 1...___.........._..............................____........._.................._.........____.......~.._.._.._........_............._..............--.....-............................___...._............... 4 ¡: -32. 03/28/97 FR1 13:45 FAX 6194984969 BEBÇ-BETRÇ ~005 VOLUME 1, NUMBER 1 NOVEMBER 1, 1996 r--.--------...-.............--....................-.............--....·...........-.--...-............................-..--.......-.-....................-.--.--.- . ! NOVEMBER 1996 CALEIWAROFEVENTS i ¡ .......-.--...-.--------··-..·--··-..---'--r------.-......................__.......................~............-...-..--...----J....-....-.......J "-( TIILEfrOPlC ! DATE i TIME I LOCATION ¡ CONTACT ¡ COST ! ...--..-...-.--.-..-..-.-...---..---............--.-....---.-..--.------..-.................................--......--.-...-.--.....···,,·..···.....--1 ! How to Choosollte RIght franchise ¡ 1J/12- ¡ 7-8:30 p.m. ¡ funNct i FranNet ¡ FREE ¡ ¡ ¡ 11/13 ¡ ! 490/ Morena Blvd., ¡ (6/9) 4911-1188 ¡ ¡ ! !! ~ Rm.122.SanDiego i i! i..··....·_.....··..··...····~..·..···..·..-.......·----·--_··~·_..·..··......~···......_....···_.._..·_···_·..4··..·_·_..··....···_··-··_..··~·······--·-···..·..·..···....·..·..i·-··..···..···,f ¡ CALTRANS Certification Workshop i 1J/13 i 9-11 a.m. i ContnICIing i Cindy IBlDcs ¡ FREE ¡ j i i i Opportnnirles j (6/9) 685-2960 ¡ i ! !! ¡ Centor(COC) i ¡ ¡ ! ¡ i j 3JjO MarlcetSt. i i i f f ! - ! SanD/ego i !! I I I . . :: ~..._..._.._........-..._..-................._............_..._....,.._.....···....·1·....··..-··--·...-.....····-t------·-----····--··i·······-...-....-................-..~.............-...~ f BRC Orientation ßI'Id Start-up ~or1a¡hop ¡ 11/13 ; 2-4 p.rn. f Southwcstcm i SBD&JTC I FREE I i ¡! ¡College ¡ (6/9) 482-6391 ¡ ; I : 2 t . . I ! !!. 900Ott9'Ltzk,RJ., ! i i ! I! !ChulaYirra j ¡ 1 to··--..·-..·-·--...-··.........··--..--.....·-..--···oofo...-..-··..¡···-----.--.....-,----.---...................;.................-........-........"'!............-.-.; ! Global Ger:aways: 20 y....ofExcellonce ! 11113 i 5:JG-9p.m. ! SmDicgoHilton, ! WorldTrodeCentor. !. I ! Annual Meeting & A_cis DiDner i! ! Mission Bay ¡ Son Diego ! ! !!! i (6/9) 685-/450 ¡ i ~......·_.._..·.........._..·....-·__........_....·..........·..+......_··_..1......------·-··--i·..-..·......·..·-.................;......·.....-.......................;....·---....-.. I Veteran' Small Businoss Workshop i 11114 ! 8:300.m.-Noon i VARcg. Office ! VARO I FREE I i !!! 2022 Camino del Rio ¡ (619) 680-4817 i i j j! Norl}" Rm. 200.4. ! i ¡ ¡I! &nDift80! i j t--···..···-..-···-···-··-..··......····..···......···-···---:··-..-..._..~..._..._----_..._._.-.¡...--............--~.........···,,·······..···-····-......·..·..-·i-·-·--·....·..; ! no ABC's ofE~porting ! 11114 i 9 a.m.-12 p.m. j hnperial Valley ¡ 80mie Boltran FREE ¡ (Imperial Valley) i I S8DC i (619) 3/2-9800 ! .. I 301 N 1m·at I ¡ i : i i - pCrI ¡ :. '-( ! i i Ave., Ste.B ! !! , ! ¡ 1 ¡¡¡Centro i ¡ i 1-__·-0···_.......···_..·_....-·-·---··-·--...···.....···-·+-·----·1........-...-....................-..~...-...................-............¡.................-----...-.......,j.......-........j · .... I I BalaneingYourLife's"Hftt's" ! 11115 ¡ 7:30·9:30 a.m. ¡ Hilton Hotol, j (6/9)557.7250 S15. ¡ ! Women'sNenvorkingBreakfost ¡ ! 7..m-Bn:akfasI ¡ MisslonValley ! tct./U9 I (bcfor< i ¡ ¡ i j 90/ Camino del Rio i ; ll/08) ¡ · ... I f !!! South. Søn D~go ¡ i $20. (at ! Ii! i i ¡ door) i :...._..._..___..._..._..._..._.........._.~....._.....___i_~_.__...¡___........_.............._.........i.........._..................;.......;;......._..__.._...................1.................J I FUI1damentals o[Exporting Workshop ¡ 11/15 ! 80.01.-2:30 p.m. i World Trado Center ! SD Disbict Export ! S75.· ¡ I ¡: f 1250 Sixth Awnue I Council ! I I : : .: ! ¡ 1 i San Diego ¡ (6/9) 557-5395 i ¡ .........._..............._.........._._._..._...__.........._.~.._........_...:..._.......___.__.._.._~..:..._.._.__.._........_.......l.._........_..._________..l............_....: I I ¡I' " I Dale Cam<gic Follow-Up Lab Worlcshop 111/15 i 8:1'-10:45a.m. ¡ Dal<Cameglo 18ETRC ! SilO. ! I ! ¡ , Facility ! (619) 4911-4965! ! ....._.............._.................__..___.__........_.._...l.........__._..:..___.___.....___................1........_._........_............3-.__.___......._........._..~........_.._..,j i YourBuslnessPlonWOf1(shop ! ll/16 ¡ 8:30a.m.-4p.m. ! UCSD-Rm.l/l 1(6/9)557.7272 ¡ $90. ! ¡ I I 1 . .. ; ;:. 6QO W Broadway ! i i · ¡ i 1 :: ! '" (@Kettner)! ! i I 1···· ¡ :! ~ parldng available ~ i j I I I : . . i ¡ : (fte) f'ea,.øflót. I : ¡ ; ;:! across the strut ~ i! ~.._..---_........_...............__.._--..._.--.----!.-._---.-.~-_.-.._.._............._........~........_............_..._--'-~-·--·-·..---..-···-·......·····~········....·_··1 I Our 8Ot'derless Environment WOf1(shop at Ibe ¡ 11/19 ! 8 a.m.·5 p.m. ! Double Tree Hotel, i Bnrder Progress ! $75. ¡ Annual Indu~ Environmental Associmon ! j I Horton Plaza ! Foundation i i I (lEA) i I ! ! (619) 291-1574 i i :--.-.-..-..-......................-.-----.....--.....------¡.··--···......·..r----~-···..···....·-···-..,·..·····-----·-·-..···....~········-····..····..·..-··---·-·1·--···--·_··'i i Industrial Environmental Association (lEA) i 11/18- I· i Double Tree Hotel, ! lEA i " I i Annual Trade Show ! 11I19 ¡ ! Honan Plaza I (619) 544-9684! i :--.._..........._.....__.._..__._.._...._._---_...._.~...:._~.._.......!.....-......-...-.....-...-...!..._-.-..-.......................:.............---------.............:....-.............: '-...../ 5 ¡:: - 33 ~ .. ...,-,.. .__.,~--_..._..._...._..-._-.-- . 03/28/97 FRI 13:46 FAX 6194984969 BEBC-BETRC 141006 VOLUME 1, NUMBER 1 NOVEMBER 1, 1996 r---·--··..···..··------·-···-····.··---·-··-···--·..··-·..-..-.-..---...-..--.-............-...................-.-..----......-................-........-...-....";'..--.......-0: /" ' NOVEMBER 19% CALENDAll OF EVErITS ¡ ¡ -.................................-..............-........-.........-.......-..-....-.......----...-....--.-.-..._._.................................................__.....................J.__..____._..J , ;::: I' "-( HTLM'OPIC ! DATE ¡ TIME ! LOCATION ¡ CONTACT ¡ COST ¡ !.....-...-.............-...............-..-..-..................-...!...-..-...-..!....-.....--..-..-........-....!-.--..-.......-..................-!..................-...............,"1,.------.-'1 ¡ Techma 96 environmental Trade Show ! 11119- i' ! Madrid, SpaID i Mark Peters ¡ 0 ! ! ~ 11/22 ~ i i World Trade CQltr;r i ¡ ! ! i i i (6/9)557-1961 ¡ i !.....-..------......-........--........-....-...-....-.n¡··..-..~~··i.........-.-......-..-...-...!...................-..-....----~..-....................-........-..i--...-...--i ~ Small Business Tax Worlcsbop 111/19 i 10 a.m_-4:30 p.m. i Rancho Bernardo i SCORE ¡ $90. i i ! i ! Llhraly i (619) 557-7272! ¡ i ¡!! 17110Bernardo i i I ~ ~! !CenlerDr/1lt.! 1 ¡ !.........................-..._.._......................._.._..._....!..._.._.......i...._...._..:_......._........~_..L.___.._____._______._~......!..._........................_..._..i.._..._._....j I I I ; . f: i YOllrBusin""" PlllIl Workshop ¡ 11120 i 8:30 a.m.-4:30 p.m. i Notional Uuiv...ity ! (619) 557-7272 . $90. ! I ¡ i t 4007 Camino tkl Rio i ~! · . . I r I ! i! ¡ South. Room. 410 ¡ !! i i i i &u,. DkgtrMission ! ;! : .... I I ! ! i i Valley i ¡ i !-.-..........-.........................----..----..----.......-!-·--·--··-·t-......···....-...·..·-..·..·......·t..·...········....·..····..···_······~······..······_..·_··--..---·1..·....·..···_··i ¡ U'in¡¡YollrCompul<:rtoMakeYour ! 11120 ¡ 8 a.m. ! HanaleiHotel ! (619)453-9388 ¡ $40.0 ¡ ! BusintsS Grow and Prosp~ æ! vcndor..faìr open until ; 2270 HOlel CircLe ¡ e;d. JJ i t ! I ! 5 p.m.* ! North. Mission! ! i J !! i Valley i i i !-........--.........-----..-...................-.......-...........i............__.j_.._______..._._...._._._i_.._.._.............................;...........................__....__.1...__............j i ¡ ¡ Ii:: ¡ EIectrofjç Ditta Il:1cerchange (EDT) for ì 11120 ¡ 9:30-11:30 a.m. 1 Contracting ! Cindy James I FREE ! ¡ Deportment ofDefen,. (DOD) Vendors i ¡ ¡ Opportuniti.. Centor ¡ (619) 685.2960 i ! ! BECA SpDlUored ! i ¡ 3350 Marlœt Sr., San i ~ æ .... 1. ! !!! Diego ¡ i! 1-···--······-..·-·..----..-·..·-····-·····..-·······......···-..:...--....-....-.--................................-.......................................................-.-.-...-................................... · . i : I I J ! U.S.·Mexico PJan1 & Maíntcmance Show ¡ t 1120· ! 10 a..m.-4 p.m_ ! San Diego i Profèssional Trade ¡ FREE ¡ ! 11/21 i i Convention Center i Shows i i .'-( i i ! i (5/Q) 354-3131 ¡ ¡ j...............-...-....-..................................................:..................:.....-............................._-.:....-...................................:........_............._.............:............___.J · I: J = i ¡ ¡,WorldTradeCenterM~berBenefits i 11121 i· ¡. ¡ WorldTradeO:ntcr. i'" i ! Orientation ! i ¡ . i San Diego . i ! 1.....-.......-..........-.....................-...........................1........_........j....._._____.._.____.__._...L_.............._........_........_.t.r~~:!..~:4~~.~~~._._____J..................1 ; I 1 r = .. i SmaU Business Tax Workshop i 11/21 ¡ 10a.m.-4:30p.m. i ChulaVistaLibrary ¡ IRS TaxpayerEdu. ! FREE ! i i i ¡ 365 F St.. Chul. i (714) 360-2094 ¡ ! · . t . . r ¡ i I ! Plsla ! ! j ;...........-....................-.........-...................................-.............................................................---..-..-.-.....-................-..............................--..-.-.-----.-.. .. ~ I .. ! The ABC~! of Exporting I t 1/22 ! 9 a.m.-12 p.m. i Soutbwestml ; SBD&ITC i FREE i ¡ (Spanish) ! i i CoUege ¡ (619) 482-6391 i ¡ ! ¡! i 900 Otay Lalœs Rd., ! ¡ ¡ ¡ i j iChulaVisla i !! ¡......-.................................................................·····-:·.......··..····..··¡..·..·····..···..······......······-..·t................4------·..····-···-i····..···_···..···..··..............·'!·..·--·-··-··i i How to Stan and Manage Your Own Business ¡ 1J123 ¡ 8:30 a.m.-4 p.m. ¡ UCSD- Rm. 212 ¡ (619) 557-7272 ¡ $30. ¡ ¡ i ¡ i 600 w'B__adway i ¡ ¡ i ¡ i i (@Kew..r)! i! ¡ !!! parking available ! ¡ i ! ! ¡ ¡ (fee) rear of lot, ! ! i ! i j ! across tMstreel ! i! ¡....-.-........-.-..---................-....~._------.~-.....·......·i··-··.....········!..·····..··....·-......··-....···....·!....··....-...-.........4..-....---,f.--................................_~.................~ ! HowwSmtandManagcYourOwnBusincss ! 11/26 ! 8;30 a.m.-4 p.m. ~ NationalUnivers1ty ! SCORE ¡ $30. ¡ i ! ¡ ! 4007 C.",ino del Jljo i (619) !J57-7271 i ¡ · . tiS th km.. 410 S : i ¡ i i i ¡ au , . Ørr ! ::: ¡ ¡ ¡ i Diego I I i ......_.............................._..................................................4...._...__.__________.___.._.._..........................................._...................__.__.__............................. '-~ 6 ~"3ý 03/28/97 FR1 13:46 FAX 6194984969 BEBC-BETRC ~007 VOLUME I, NUMBER 1 NOVEMBER 1,1996 r-.._..._........_.._..._...._~_._-_.__._.._..._...._.......-....--...-.-..--...-...-..-............-.--...-........-..........................---..........--.---.--.......-.. . ! ' .' , . NOVEMB~R 1996CAL~NDAROF~VENTS ! .---...----..---..-.---..--.--.---...-...---...-.----------.........---.--.---.-----------.-----------------.1--.---..-.. ''-(' TI1l.1!rrOPtC ! DATE i TIME ! LOCATION ! CONTACT I COST I !-.-----.------..---.-..----...---.-I..................;---...--·-···--·..··...-·..-·r···..···-···-·····--··..-···-~···_··..·····-··..···...···.....·..1'......-····..··1 ! BRC Orientation and Start-Up Worbhop j tl/27 j 2-4 p.m. j Southwestern j SBD&:ITC i FREE I I ..... ¡ i ¡ ¡ Coll~e ¡ (619) ~82-6391 ¡ i I I'" . ! ¡, i 900 Oray fA/œ$ Rd., ! i! I .... i i I jCJudayulo. I I i ....__00........_........._..._..._..._..._............._................_..___"'"____.___._._..___.._.___.__...___._..._..._....__..._...___.._..__.__.._..__.._J . Call to find out about registration details. - ',--,' ''-'' 7 ,c -.3~- -.. .~._~ .._.-.-. --.-.--.-'~.-.-.-.+-~----._. 03/28/9i FRI 13:46 FAX 6194984969 BEBC-BETRC ~OO8 BECA Technology Resource Center 1 ~edtetút \..J VOLUME 1, NUMBER 2 DECEMBER 1996 'EBerl Sf4I¿ STAFF AND PHONE NUMBERS BETRC Jeanette Moorhouse, Jnteñm BETRC Manager .. . . .. .. . . .. . : .. .. . .. .. .. . . . . . . . . . .. . . .. . . .. . 498-4964 Veronica Gomez, BETRC Cross-Border Marketing Specialist. . ... ... .. . . .. . . . .. . .. . ... .. .. .. . 498-4971 Jim Graham, BETRC Business Development Specialist ................. . . . . . . . . . . . . . . . . . . . . . 498-4973 Don Kowal, BETRC Environmental Management Specialist .................................. 498-4962 Joyce Sheean, BETRC Senior Project Clerk ............................................... 498-4970 Martina Peinado, BETRC Project Clerk. . . . .. .. .. .. .. . . . . . . . . . .. .. . .. . . . . . . . . . . . .. . . . . . . .. 498-4965 BEBC - Stan Schultz, Interim BEBC Manager .................................................... 498-4966 Julien.e Mi11er, BEBC Administrative Assistant/Office Manager ............................... 498-4960 HAPPy HOLIDAYS! The entire BECA staff wishes you a safe and happy holiday season! '-..LONGRATULATIONS PATRICIA! Patricia Cerda, our former BEBC Administrative Assistant/Office Manager, has taken advantage of a great opportunity. She is back in her field of Human Resoutces Management and is doing great! If you would like to sign a "Congratulations!" card, please see Martina or Joyce by December 13. WELCOME JULIENE! Juliene Miller is our new BEBC Administrative Assistant/Office Manager. She started on Friday, November 22. Stop by and introduce yourselll She is looking forward to meeting all of you. CROSS-BORDER ENVIRONMENTAL MARKETING SPECIALIST Veronica Gomez is BECA' s on-site Cross-Border Environmental Marketing Specialist. She is available to assist environmental companies in all aspects of promoting their products and services to the Mexican environmental Markel Her services include identifying and accessing international markets & distribution channels, facilitating market research on the environmental opportunities in Mexico, matching San Diego product and service providers with Mexican firms needing to meet enyironmental standards, organizing seminars and reverse trade missions for Mexican govermnent officials and private businesses, and coordinating joint venture partnerships and contracting opportunities in Mexico. BUSINESSDEVELOP~SPECIALIST Jim Graham is the Business Development Specialist at the BECA Technology Resource Center. His duties include assisting with formulating business plans and marl<eting strategies, obtaining small busine5S financing, and export a5sistance. ENVIRONMENTAL MANAGEMENT SPECIALIST -..J' Donald J. Kowal is the Environmental Management Specialist for the BECA Technology Resource Center and 1 .... F - 3-G, 03/28/9ï FRI 13:4ï FAX 6194984969 BEBC-BETRC 141009 VOLUME 1, NUMBER 2 DECE'/vœER 1996 will advise clients regarding development of environmental technologies into commercially vial,1e products and V services and in formulating strategies for commercialization and implementation of new technologies. Tn addition, the Environmental Management Specialist will coordinate activities with local, state and federal economic development agencies and resources. StfU1lce ~ DECEMBER HOLIDAYS The BETRC and BEBC wíll observe the following holidayS: Wednesday, December 25, 1996 - Christmas Day Tuesday, December 31,1996 - New Year's Eve Wednesday, January I, 1997 - New Years Day Veronica Gome~ Jim Graham, and Don Kowal wí1l be off on: Tuesday, December 24, 1996 - _ V~ '4 ß'~ 7tft SHIPPING COST When vendors are shipping you materials and billing you for shipping, compare their shipping cost to your own. Sometimes your vendor will have better amll1gements with truckers and others, and they will p&J3 :hem on to you. Other times it is cheaper to make the arrangements yourself and pay directly. - '-..../' 7e«Mt1~ TAX & FINANCIAL STATEMENT REVIEW Me! DaCosta will be at the BEBC facility on Friday, December 13, from 9 a.m.- 3 p.m., to review your financial statements and give advise on how to reduce your tax liability. Take advantage of this FREE opportunity. Make an appointment with Martina by December II. BUSINESS CLUSTER TENANT MEETING Wednesday, December II, 3 p.m. - BEBC Training Room. Tbc AGENDA will be in your mailboxes seven days prior to the meeting date. Come and get the latest news! DALE CARNEGIE LAB WORKSHOP - POSTPONED The Dale Carnegie Lab Workshop has been postponed to Thursday, Febrnary 6, 1997,8:15-10:45 a.m. lfyou are a BEBC tenant, the BETRC will pay the $110. registration fee - it's FREE to you! During this follow-up workshop, you will learn to structure your own "mini-selling" presentation and present it while being coached by Dale Carnegie Professionals. In your presentation you will bring together all of the skills of planning, opening, closing, providing evidence, mannerisms, visuals, and handling questions. Your presentation ",m be videotaped, and al1 participants wU1 receive their own taped presentation at the end oftlle class. 'Ibis follow-up workshop is available on a first-come firsl-servcd basis to the first 15 participants that register. Please register with Martina and mark your calendar. WHAT WOULD YOU LIKE IN TIlE LIBRARY. .. ? What would you like to see in the libraI)', as far as, publications, books, software, databases, etc.? We would ~ appreciate it if you would give this question some thought while we put together a survey fonn. 2 ¡: -.37 -ii~ .. ._".. __.___,... _.d'". _~_._.~____m 03/28/9i FRI 13:4i FAX 6194984969 BEBC-BETRC ~O10 VOLUME 1, NUMBER 2 DECEMBER 1996 CLERICAL SUPPORT FOR TENANTS '--/ Joyce has been meeting with various temporary agencies to discuss clerical support personnel. She has talked with Office Team, Office Specialists and Apple One. All of these agencies are reputable and have a pre-screened pool of clerical personnel. Apple One has offered to give a discount on hourly rates to BECA tenants to help support our program. In addition, the "tecb prep" students in the international business class at Southwest High School have completed their general office training and were interviewed by a few tenants who may be interested in their help. The students are yolunteers, are all computer literate, and most are bilingual in SpanishlEnglish. Also, Southwestern College has a cooperative education program which has students who are interested in working in tbeir field of study each semester. These students can be both paid and unpaid The availability of paid students is much greater than unpaid. If you are interested in hiring a Southwestern Conege student, please talk with Joyce. The college also has a employment servioe through which you can "posf' any part-time or full- time openings you may have. 111Ìs service is to help students find employment. Johs paying minimum wage or higher can be listed with student employment services. CONGRATULATIONS! Metallic Power, Inc., fonner BEBC tenant, had a successful Grand Opening on November 20. Mayor Shirley Horton was the keynote speaker at this event. tþweat 1~ lJECA ADVISORY BOARD MEETING '....../ The next BECA Advisory Board Meeting is scheduJed for Friday, December 20, 7:30-9 a.m, in the BEBC Training Room. Organic Recycling West will be doing a company presentation to our board members. NEW TENANT Please welcome Mike Pykelny of Scientific Water Solutions to the BEBC. His company distributes water purification equipment for use in industrial applications and resides in Suite #14. Stop by and introduce yourself. LETS RECYCLE! There arc recycling bins for white and colored paper in the BEBC kitchen and the BETRC. WHAT'S NEW IN THE LffiRARY! California Environmental Protection Agency (Cal EP A) Strategic Plan . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1996 Defense Advanced Research Projects Agency (DARPA) ............................................. Environmental Teclmologies Testing and Demonstration Sites .......................... September 1996 A directory of federal demo sites for environmental technologies Guide to Department of Defense Environmental Procurement; Making the Most of Your Opportunities June 1995 Guide to National Institute of Standard and Technology (NIST) ....................................... Naval Facílities Engineering Command Small Business Specialist Directory ................ August 9, 1996 Opportunities for Partnerships ........................................................ 2nd Edition Partnering Guide. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. July 1996 Fot enYitonmental missions of the US. Air Force, Army, & Navy Procurement Forecast-U.S. Department of Transportation .............................. Fiscal Year 1997 Program Solicitation: Small Business Innovation Research Program .. . . . . . . . . . . . . . . . . . . . . Fiscal Year 1997 "--' San Diego Tijuana Economic Outlook. . . . .. .. .. .. .. . . .. . . .. .. . . . . . .. . . . . . . .. . .. . .. . . .. .. . . .. 1997 3 "-.s. ,c -.3f 03/28/9; FRI 13:48 FAX 6194984969 BEBC-BETRC 1aI0ll VOLUME 1, NUMBER 2 DECEMBER 1996 Selling to United States Special Operations Command (USSOCOM) ..................... March 11, 1996 '--./ Small Business lnDovation Research (SBJR) Gnmt Applications. . . . . . .. . . . . . . . . . . . . . .. . . ... . . . .. . 1996 Small Business Innovation Research ............................................... Fiscal Year 1997 Small Business Innovation Research Program Technica! Abstracts ....................... Fiscal Year 1996 Small Business Innovation Research (SBIR) Program Solicitation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - . . . . . Small Business Technology Transfer; Abstracts of Phase I Awards ............................... 1996 Today Magazine .. . . . _ . .. .. . .. .. . . . . . . .. .. . .. . .. . .. . . . .. . . . . . .. .. . . . . . . .. . . . . . . . .. . .. . .. . . . . . U.S. Special Operations Command .............................................................. U.S. Department of Defense (DoD) Women Owned Small Business Facts (Handout) . . . . . . . . . . .. . .. . . .. . . . . Women-Owned Small Business (WOSÐ) Resources (Handout) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DECEMBER 1996 CALENDER ......-----.............-.........-.......-...-...-.............---...............................--...-.-..............--........-.............-...-...-..--..-...-..-......·r-·..·..·...·· i DECEMBER 1996 CALENDAR OF EVENTS ! I 1______.._..._........_.______........_..._..____·_·_·......_...._____.._._._._____.._........._..._______...._...........~-···..·-··_···_···-·i ! TlTLElTOPlC ! DATE ! TIME ! LOCATION ¡ CONTACT i COST ! j._....................................._.............._.__._._...!..............__j_-..--.-....................-.J-..........-.....................-.----...............-..._;.........._.....J t Sound"Ad'/¡ce &, Individual Busioe...li..1ò 12102 i 9 a.m.~NOOD ~ Chuh~ Vista ! C.V. ChamDcr' i FREE 1 ! Counseling - SCORE ¡! i Chamber of ! (619) 420-5292 ¡ ! ! : i ! Commerce::; : i-- : 1: i t I; : t;; 233 FowthAve.: ; · ...;. . ~ i! ~ Chula Pisla! ¡I L.....___._.........................___.__.......................___1...........__...1..........._.._.._..._..._..._1......_.--.-.....................----..-...............-............-.-.............. I Issues in Contemporary Inlern.tional f12l02- i 6-9:30 p.m. ¡ U.S. International ! (619) 635-4615 i $300.* ! š Managcmrot Seminar ; 12/21 f (M.T & TH) ! University ~ !! i i ª ¡ 10455 Pome,.ado i !! : :!; i I: ¡ i ~ Rd.. .~n Diego: ¡ ¡ -...J.......................-........................-.............-..·-··t··..····_··--··i"····..···_··...·_··_~··_···!·..·_··············-···--·--......·1··-······..·..··-···....············1····..··..··-·-··1 ! How to Start and MIIIInge Your Own Busin.... ¡ 12103 ¡ 8:30 a.m.-4:00 p.m. ! Nnlionnl University. ! SCORE ¡ $30. ! ! ¡ ¡ i North County ! (619) 557-7272 ¡ ¡ ! i ¡ ~ 2022 University Dr.. ! i ì · .., Rm ~ ., !. !!! .306. Vista ¡ ¡! 1.-.......-..-...-.......·--··..·········..···..···..··.---··._-.,......................._....._..~.................................--._.._..............-~.-.--.-_...-...............-...-......-..........., i Smal1 B\LC:lness AdministrnlioR (SBA) Section ! )2/04 ! 9..11 a.m. I Contracting ! Cindy Jtuncs ! FREE i ~ 8(0) Progrom W...lcshop ! j j Opportuniûes COIIter ! (619) 685-2960 ¡ ! : :, I (COC) I : i ¡ ¡ ¡ ¡ i æ: i !: ¡ 33S0Mtu'JœrSt.. i :! : ¡:! SanDiego ¡ !! ¡......................._.._.........................._._................1................_1.._.........................____.1__........_..................__...1_.._.........................~....i....._..._.....j ¡ San DiegorrijuonnBorder Waste WiS. ¡ tZlOS i 8;30 ..m.-3:15 p_m. ¡ Hotel Plan I., ¡ Kris1eo Koch ! $10.* ! ! Conf=c< ¡ ¡ ! (¡Iorlas 1 (619) 573·1212 i i ! i 5 i Tijuana i ¡ i ~..._.............~...._...._-..-.._........._..._........-_......_!............_.....;.......-.-.......n·....·....·..·····_i_-.._.._.......................~._.__...-..._........_......···~·_·.....···..···i I Advcrtising&Promotion ¡ 12/05 t 9a.m...Noon ; NatioDalUniversity ì SCORE ! $25.- i i : ¡ I 4007 Camino dsl Rio i (619) jJ7-7272 ¡ i · I. £ I .. ~ i i ¡ South, Rm. 410: ¡ i ¡ i ¡ i&nDiego i ; j ;..............__..._..................................._.............._...¡.......___._..t..................._...___.._...L........................_..__.._..!.._.................._...._.._.J...................! ~ Sales Tcdmiques ~ 12105 i 1-4 p.m. i NatIonal University í SCORE ! $25.· ¡ i ..! . . i ¡! ¡ 4007 Camino <hI Ria! (619) 557-7272 ¡ ¡ i i! ¡ ~·ou.th. Rm. 410! ! ¡ ~ .... I' I :! jSanDiego; I i !.--..-..-..............................--...............................!..................I......_......-.-.--.--............;;~...~..._....__.__.............................__....---...-..-.,¡........--.--- ~ San Diego & Arizona Railwa.y to Tecatc 112/07 j 9:30 a.m.-4 p.m. ¡ Campo (boanHrnin) ~ World Trftde ('.enter ! $45.* i : ! ¡ ¡ ! (619) 685-1450 i ¡ :......_._._.._..._............_........_.._.........._..._......:.......___..__i......._......._..._...._.._.....i..........._..._...~..._..._._.i....................._...............J.................; ~ ...:. . ~ Asia Pacific Growth: The TaiwlID. Factor i ]2108- ~ * i · i Jeff Segall ! .. ~ .........1 Annu.1 Cooference ¡ 12111 ¡ ¡ ¡ (619) 685·1459 ¡ i .............-..-.-...................-...-.--..-..-........................._.......__........_..................~.._..__.......................-.....------..-.........................----............... 4 ._.__.__.,",.._...._n_.... 03/28/97 FRI 13:48 FAX 6194984969 BEBC-BETRC I4i 012 VOLUME 1, NUMBER 2 DECEMBER 1996 1"--......................-............................................--.......................--.---...................---.......--..-..--..-.......................................-.........-..:".............--: , DECEMBER 1996 CALENDAR OF EVEl'<ïS ! ! .-.__..............n.....--·····..···········--..··········.......-.........................--.-..-.-.......-..-.......................---........................-............... .....-...................--... Y TffiErrOP1C ¡ DATE ! 11M!! ¡ LOCATION ! CONTACT ¡ COST ! !....__......................_...................__.................._...1.................-!____.............__n....__..·······f··....·······_·············n.......~.--............········--~···..···1······_·--···""! 1 Sound Advice & Individual Business i 12/09 ~ 9 a.m.-NQon ¡ ChuJa Visla i C.V. Chamber4' i FREE i ¡ COW1seling _ SCORE ¡ ¡ ¡ ChElI11ber of i (6t9) 420.5292 ¡ ! i !! ¡Commerce! ! i ¡ * I : . !: ¡ :!! 2JJ FourrhAw-. ! 1: ¡ . ,,: Ch laVì' :' ! ¡ i ! "uta ~ i ~ ............._...................._......................_.__.............t....-...._.......I.~...........--._-.............--...___......................___........._._......____........~..........1_.__..........4 ! How to Stan and Manage Your Own Business! 12110 i 8:30 ..m.- 4 p.m. I National Univmily ¡ SCORE ! $30. I ! i t i 4007 Camino del Rio ! (619) J57-7272 ~ i ! I! ¡ Souih. Rm. 410; ! i :..' I' ! ¡ ì !SQnDlego i :: 1............_..._~_~~............._..._.___~..................._.._.;...............__..........................__...........;t........~.__......_..._...........!-_··___.....·..·····..···____·····.I........._......J ¡ Your Busin.., Plao ¡ 12/11 ¡ 8;30 a.m.-4:30 p.m. ¡ National University- ¡ SCORE ! $90.' ¡ ¡ i ¡ ¡ Mission Valley . ¡ (619) ;;7-7271 ¡ ¡ i 1 ~ ! 4007 Camino del Rio ! !! . I.' h, I ., i i i ! Soul Rm_ 410: i i : . IS D I : I i ¡ i ! an iego ¡ !! !...........__._....................._~_____................._.__..........!.........._._.._-:............._......_._._......·..·!······--·-~··....··..-······---·i-·..~........··..···..···-..........'!..........~_.-.~ ! CALTRANS Certificate Workshop i 12111 i 9-11 a.m. 1 Business Innovadon i Cin\1y James I FlŒE ¡ ¡ i ¡ --i Center (BIC) ¡ (619) 68;-2960! ¡ ~ i i ~ 3350 Marlœt St., i j 1 : :: 1. ¡ i! 1: :! :SanDJcg(): :: !_..._..................___.._..................._............._.........i._u...............!......_____~..........._.......__..!......................_.~..._........i.............__..._..................~.._.__..........l ! Sources of Capital [or Small Business Start· ! 12I1~ ! to a.m.-4 p.m. ¡ Notional Univ=ily ¡ SCORE i $30. ¡ i Ups ¡; ¡ 40Q7Caminod.IJlÙ) ! (619)5;7-7r2 ¡ ¡ ! I!::! : ! ; ¡ ¡SoUIh,Rrn.3Q8! ! i ~ ¡: iSanDiegQ; : i ;' . . :. _..................._........_..................__....................._-::_~_.._...........¡......_..__......................._.i......_.................._.._......;............_._.____...._.......····~··-····..···..··i "--{Sound Ad'Vicc & Individual Business ! 12/16 ¡ 9a.m.~Noon ! ChulaVista i C.V.Chamb~ i FREE ¡ ¡ Counseling _ SCORI:: ¡ j j Ch:unber of ! (619) 410-;292 ¡ i i ¡! !Commerce! : i · I I . . I· i ¡ i ! 233 FourlhAve_ i j ~ · ..' I .. i ¡ ¡ !ChulaVlsllJ ¡ ~ i I......---..-~_····..·················_··__··········....·....-..--...........................-........._.............~---.........................--..........................---.--........................~-~--............... ! Technical Data Exchange (IDE) ¡ 12/18 ! 9:30-11:30 a.m, ¡ Busines, Innovatinn .¡ Cindy ¡"",es ¡ FREE i i ;! ¡ Cen1er (BJC) ; (619) 685-2960; ¡ · ..... ; i i! i J3JO Marker St" ! ¡! ; I!; S Die: :; ¡ ¡ i ! an gO! ¡ ¡ !................___...__........................_........................-3---...............¡.......--..-....................···-i·~·..······....·..···....····--····..~····..·····....···_----··..····..···i··..··---····" ¡ Sound Advice & Individual BusmQSS ~ 12/23 i 9 a.m.-Noon ! ChuIa Vista. 1 c.v_ Chænbr=r- ¡ FREE i ¡ Counseling _ SCORE ¡ j ¡ Chnmber of ! (6/9) 42M292 ¡ i j ! i !Commercc! ¡ ¡ i i! i 233 F()urthAw. ~ ~ ¡ j ! i !ChulaVi"ta i ¡! :......_..____..~.......................___......._........_....__.__..!...................~____......_.._.........._._..._...:..............._._.....................:......____~_....................._.___.t...................: . Can to find out about registration details. '..._--' 5 '&-40 - From: Brian Runkel, CEBC To: Dan Stockin Date: 3/28/97 Time: 12:27:36 PM Page 1 of3 FACSIMILE COVER PAGE To: Dan Stockin From: Brian Runkel, CEBC Sent: 3/28/97 at 12:27:36 PM Pages: 3 (including Cover) Subject : CEBC Strategic Plan-First Draft - ¡:-4( .' ..... jt~: - wu '. . "'. ."~ --- -~,~. ...,_...._-"~".,--- From: Brian Runkel, CEBC To: Dan Stockin Date: 3/28197 Time: 12:27:36 PM Page 2 of 3 ~ CALIFORNIA ENVIRONMENTAL \ .BUSINESS COUNCIL, INC. 3120 De la Cruz Blvd., Santa Clara, CA 95054 Tel: (40B) 748·2170 . Fax: (40B) 748-2189 March 25, 1997 URGENT CEDC MEMORANDUM TO: CEBC Members FROM: Brian A. Runkel, Executive Director ~ California Environmental Business Counç' , Inc. . RE: FIrst Daoaft of CEBC Stl'ategla Plan 2000 --------~------------------------------~------------------_.--------------------------------------~---- The first draft ofCEBC's Strategic Plan 2000 is completed! Members who have RSVP'd to attend next week's meetings in southern California will receiye the Plan by fax (and hard copy), while the rest ofCEBC's Members will receive a hard copy by regular mail. I would like to have faxed a copy to each Member with this memo, but since the first draft is 45 pages, this would have been infeasible in terms of available computer time. In any case, all Members will receive a copy of the First Draft by the beginning of April, which will be in plenty of time for the remaining Strategic Plan meetings. Please note that the statistical charts referenced in the Plan will be in the hard copy only. Thanks mostly to the outstanding efforts of the Strategic Plan 2000 Steering Committee (see list), the First Draft of the Plan represents a good start to developing a final Plan, but it still needs a lot of work. First of aU, obviously, the Plan needs to be edited down to no more than 25 pages, if it is to serve as a useful strategy document that business executives will actually reac!. I actually did cut out a fàir amount of material subrnitted to me by the drafters, but felt it would be better to have as many creative ideas on the table at this time as possible. We may also pull out certain secûons and issue them as standalone documents. With regard to content, there are some gaps in the Plan, particularly in the Financing Section and Exports Section. These gaps will be filled in as we go along, but we couId really use some help in drafting the Financing Section since unfortunately the VC community is not investing in environmental projects in California. We also need to flesh out the Action Plan component of each Section. Some are good, but some need work. Your input il' r.riti~.l tn møkinr thil' PlAn A usr.:fnl dot.nment Rven if YOII ....annot make ,it to one of the Stratetk Plan meeting, (schedule attachelt). pl..Jlse provide written comment.. (includin( comments in the mst:liolll if that i~ easiet:)_ The deadline for comment.. on the First Draft is April 18. 1997, since our last meeting is April 16. I will then work with the Steering Committee to revise the first draft and develop a more concise, second draft that will undergo formal CEBC Board review before being sent to Members and outside parties for additional comment. As I have indicated before, we will then seek to meet with key client industry trade associations, government leaders, and other interested parties to gather their input on the Plan. Target date for issuance of the Final Plan is still July 1, 1997. Please email (BR1027@aol.com), fax (40Sh4S-2IS9) or call me with your comments! .. 1=-42. . From: Brian Runkel. CEBC To: Dan Stockin Date: 3/28f97 Time; 12:27:36 PM Page 3 of 3 ~ CALIFORNIA ENVIRONMENTAL ,BUSINESS COUNCIL, INC. . 3120 De la Cruz Blvd., Santa Clara, CA 95054 Tel: (408) 748-2170 . fax; (408) 748-2189 CERC CALENDAR OF MEETINGS Spring 1997 Meetbt.gs ta Dlsauss CERC Stratell_1: Plan 2000 - Menabe... On1:p These Internal meetings will featun 1'01Jndtahle pn:sentations and discussion regarding CEBC's Inltfative to develop a Strategic Plan 2000for the California Environmental Industry. Ajirst draft of the Plan will be discussed for CEBC Members' Input, In order to Jûrther n:fine the Plan before seeking outsid! Input at a later time. Mult1ple meet1ngs to are being held to make it as easy as possible for Members to allP.nd at least one of the meetings. Saa Diego: Man:" 31. LO:OO allto - 1:00 p.... offices of ....ocoplo. CollY. H_lP"'aves ..zlIIl Savlt_. 2100 Vnlon BanJo: IIldg.. 630 liSt.. 5..n Diego. CA CEBC Contact: Brian Runkel, (408) 748-2170. Procopio Contact: John Lonnon. (619) 238-1900. Newpori DeaclaJlaovine. April I. 10.00 a.... - 1.00 p..... offices of Envb'on__tal Medi.tion In.... 4695 Ma....btl..... Ct.. Ste. 1250. N_ Dca..... C:A CEBC Contact: Brian Runkel, (408) 748-2170. EMI Contact: Wayne Nastri, (714) 476-9109. GI_dale: April 2. LO:OO.... -1:00 p.... offices of Wi IUs C:oft'ooa. 801 Nori.. !band DoUleva:rcl. Cleadale. CA CEBC Contact: Brian Runkel, (408) 748-2170. Willis Carreon Contact: Gary Lipkin, (818) 552-4211. San Jo..e: Apñl B. 10:00 a... - 1:00 p..... offices of EMCON. 19211Un_ood Avenae. 5.... Jose. CA CEBC Contact: Brian Runkel, (408) 748-2170. EMCON Contact Curtis Lindskog, (408) 453-7300. SaD ....n..I....o: April 15. 1:00.4.00 pm. offices of Geom.trix Consult...t... 100 Pine SÚ"eet. lOUI nao... San hanciseo. CA CEBC Contact: Brian Runkel, (408) 748-2170. Gcomatrix Contact: Sally Goodin, (415) 434-9400. Ba........_to. Apñll6. 2:30.4.30 P.... offices of Jacobs Engineering C.,oup, 2525 Nato_as PIUIc Drive. Salte 320, 5...........ento. CA CEBC Contact: Brian Runkel, (408) 748-2170. Iacobs Contact: Vida Wright, (916) 922-8600. OTHER CERe MEETINGSICONFERENCESISEMINARS Ma..... 26-27. S.........._to _ CEDC Co..fe.,e..ce. "lntepated Model fa.. D..o_flelds Rea.e (lMBR)". (co_.p.....o..ed _th I..st. of Envi..o.....ental Solation. (IES)), begirnrlng at 11:30 am on March 26th and ending at 5:00 pm on March 27th, The Grand, 1215 I St., Sacramento, CA Cost: $140 for both days; $65-first day only; $95-sccond day only. Hotel: The Clarjon Hote~ 700 Sixteenth St., SacramcntD. CA, (916) 444-8000. Contact: 1nst. ofEnvironmenal Solutions, (916) 444-3412, or Brian Runlœl, CEBC, (408) 748-2170. April 24, S.... Diego _ CERe Senda..., "Na'V"J"s Califonda CI..nup I.....ovatioa. and Caatwac:t_. OppanuBftles'·. co..paBsow-eel with U.S. Navy_Soutlt.w-est Division. Naval FacUities Enp. Co......and. 9:30 am - 4:00 pm, San Diego, CA (site to be determined). Contact: Brian Runkel, CEBC, (408) 748·2170, or Jerry Katz, Navy, (415) 244-2501. M.y 23. ""..g De._ - CEDC Se...in_. "E..vùon...e..tal Dusine.s Opporiunitie.. in L.tin Anaerica" (..o-.pon..o.,ed witla V5AID. Ex-I... Da..k. Dept. of Comnaeree). 8:30 am - 2:00 pm, Long Beach World Trade Center, Lcng Beach, CA. Featuring Lunch Address by: Julie Bclaga, Director, Export-Import Bank Contact; Brian Runkel, CEBC, (408) 748-2170. or Brian Huerta, USAID, (714) 895-8134. F-43 --~-,..'~._,."- --.."...- _.._-~. -----. , _'____'__"_ _..__.... - ..... ._u..____...__ _,_,__ ____.._. .........._.._.