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Home My WebLink AboutAgenda Packet 1994/07/19 Tuesday, July 19, 1994 6:00 p.m. "I declare binder penalty of perjury that 1 awl employed by the City of Chula Vista in the Office of the City Clerk and that I posted this Agenda/Notice on the Bulletin Board at the Public ervi s Building an ,at City Håll on . DATED, r SIGNED . ~. Re ular eeti of the Cit of Clì Council Chambers Public Services Building CALL TO ORDER 1. ROLL CALL: Councilmembers Fox _, Horton _. Moore _' Rindone _, and Mayor Nader _. 2. PLEDGE OF ALLEGIANCE TO THE FLAG. SILENT PRAYER 3. APPROVAL OF MINUTES: July 12, 1994. 4. SPECIAL ORDERS OF THE DAY: a. Proclamation commending Laura Dominguez "Miss California Junior National Teen-Ager 1994" - The proclamation will be presented to Laura Dominguez by Mayor Nader. b. Oath of Office: Commission on Aging - William Lane; Child Care Commission - Jeanne Humes; Safety Commission - Scott Bierd, John Liken and Cindy Miller; Youth Commission - James Joseph Alfaro and Julia Wubenhorst; and, Library Board of Trustees - Bill Alexander. c. Presentation of $5,000 to the Youth Coalition by Elite Racing, Inc. ***** Effective April 1, 1994, there have been new amendments to the Brown Act. The City Council must now reconvene into open session to report any final actions taken in closed session and to adjourn the meeting. Because of the cost involved, there will be no videotaping of the reconvened portion of the meeting. However, final actions reported will be recorded in the minutes which will be available in the City Clerk's Office. ***** CONSENT CALENDAR (Items 5 through 12) 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 Fonn" available in the 10bbY'and submit it to the City Clerk prior to the meeting. (Complete the green fonn to speak in favor of the staff recommendation; complete the pink fonn to speak in opposition to the staff recommendation.) 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: None submitted. Agenda -2- July 19, 1994 6. ORDINANCE 2595 AMENDING THE ZONING MAP OR MAPS ESTABLISHED BY SECTIONS 19.18.010 OF THE MUNICIPAL CODE PREZONING 0.67 ACRES LOCATED AT THE SOUTHWEST CORNER OF BONITA ROAD AND LYNWOOD DRIVE TO C-V-P, COMMERCIAL VISITOR PRECISE PLAN (second readiDl! and adootion) - The application requests an amendment to the General Plan and prezoning for 0.67 unincorporated acres at the southwest comer of Bonita Road and Lynwood Drive. The proposal is to redesignate the site from Office Commercial and Residential Low Density to Visitor Commercial and prezone the parcel C-V-P, Commercial Visitor with Precise Plan. Staff recommends Council place the ordinance on second reading and adoption. (Director of Planning) 7.A. ORDINANCE 2596 AMENDING SECTIONS 13.14.100 AND 13.14.150 OF THE MUNICIPAL CODE RELATING TO SEWAGE PUMP STATION CHARGES AND ORDINANCE NUMBER 2461 AND REPEALING ORDINANCE NUMBERS 2181, 2286, AND 2477 TO DISSOLVE SPECIAL SEWER SERVICE RATE AREAS (first readiDl!) - On 5/17/94, Council approved Policy Number 570-03, Sewage Pump Station Financing Policy. The Policy provides that all existing Sewer Service Rate Areas, which provide for the financing of maintenance and operation costs of public sewage pump stations by property owners, be modified. Ordinances 2181,2286,2477, and Resolutions 6833 and 8028 must be repealed; and Ordinance 2481 must be amended to comply with the Policy. The Master Fee Schedule and Municipal Code need to be updated to reflect the provisions stated in the Policy. Staff recommends Council place the ordinance on first reading and approve the resolution. (Director of Public Works) B. RESOLUTION 17568 AMENDING THE MASTER FEE SCHEDULE TO DELETE CHAPTER XII, ENGINEERING-SEWER, SECTION D, PUMP STATIONS RELATING TO SEWAGE PUMP STATION FEES AND REPEALING RESOLUTION NUMBERS 6833 AND 8028 TO DISCONTINUE THE BILLING OF SEWAGE PUMP STATION CHARGES 8. RESOLUTION 17569 APPROVING AGREEMENTS WITH VARIOUS COMMUNITY PROMOTIONS GROUPS FOR EXPENDITURE OF CITY FUNDS - The 1994/95 budget includes funding of various Community Promotions organizations. The Council considered requests from the groups during the budget session on 6/1/94 and approved funding. Staff recommends approval of the resolution. (City Manager) 9. RESOLUTION 17570 APPROVING A THREE PARTY AGREEMENT WITH REMY AND THOMAS FOR LEGAL CONSULTING SERVICES TO REVIEW ENVIRONMENTAL DOCUMENTS FOR THE OT A Y RANCH PROJECT AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT The agreement would authorize Remy & Thomas to review environmental documents prepared by the City or their consultants including, but not limited to, the Sphere of Influence, the SPA Plan for Otay Ranch and related environmental review; provide guidance to City staff as to processing of all supporting environmental documents to assure compliance with CEQA; and, provide legal advice to City staff calculated to avoid litigation predicated upon alleged deficiencies or improper processing of said documents. Staff recommends approval of the resolution. (Special Planning Projects Manager, Otay Ranch Project) Agenda A. ORDINANCE 2597 B. REPORT 14. PUBLIC HEARING 15. PUBLIC HEARING 16. PUBLIC HEARING -4- July 19, 1994 AMENDING SECTIONS 14.04.010, 14.06.010, 14.08.030, 14.08.090, 14.08.140, 14.08.170, 14.10.010, AND 14.14.010 OF THE MUNICIPAL CODE, REPEALING SECTION 14.06.030 OF THE MUNICIPAL CODE, REPEALING CHAPTER 14.18 OF THE MUNICIPAL CODE AND ADDING CHAPTER 14.20 TO THE MUNICIPAL CODE REGARDING STORM WATER MANAGEMENT AND DISCHARGE CONTROL (first readiDl! ) OPTIONS A V AILABLE FOR LEVYING AND COLLECTING FINES FROM THOSE INDIVIDUALS THAT VIOLATE DISCHARGE REGULATIONS IN LIEU OF CONTINUAL INCREASES IN STORM DRAIN FEES CONSIDERING TESTIMONY ON THE ESTABLISHMENT OF ZONE 8 IN OPEN SPACE DISTRICT 20 FOR RANCHO DEL REY DEVELOPMENT FOR THE PERPETUAL MAINTENANCE OF A DESILTING BASIN - A desilting basin was built by McMillin Development in City open space off-site of Rancho del Rey land to trap silt which washed down from the upstream development. After maintenance by McMillin for five years, the City will have to maintain the basin. Formation of Zone 8 within Open Space District 20 will provide fmancing for the maintenance. Staff recommends Council open the first public hearing, receive testimony, close the first public hearing, and set the second public hearing for 7/26/94. (Director of Public Works) CONSIDERING TESTIMONY ON THE ESTABLISHMENT OF Z'ONE E WITHIN EASTLAKE MAINTENANCE DISTRICT NUMBER ONE, FOR THE PERPETUAL MAINTENANCE OF TELEGRAPH CANYON CHANNEL - On 5/24/94, Council declared the intention to establish Zone E within EastLake Maintenance District Number One (ELMD 1) to provide for the maintenance of Telegraph Canyon channel. The public hearing will consider testimony for assessing benefitting properties within EastLake Maintenance District Number One for their pro rata share of the costs. Staff recommends Council open the first public hearing, receive testimony, close the first public hearing, and set the second public hearing for 7/26/94. (Director of Public Works) Continued from the meeting of 7/12/94. CONSIDERATION OF COASTAL DEVELOPMENT PERMIT NUMBER 066 FOR SDG&E TO REMOVE AND FILL EXISTING TEST WELLS LOCATED WEST OF BAY BOULEVARD, NORTH OF "E" STREET - In January 1986 the fuel oil transfer pipe serving SDG&E's South Bay Power Plan developed a leak. To repair the leak, SDG&E secured the necessary permits from the City and received the appropriate direction from the Regional Water Quality Control Board. Several monitoring wells were drilled to perform soil and groundwater contamination sampling during the course of the fuel oil clean- up. In September 1986 the Regional Water Quality Control Board notified SDG&E that no further remedial actions were necessary. Recently SDG&E became aware that monitoring wells which have no further purpose are required by the San Diego County Department of Public Health Services, Environmental Health Protection Section, to be removed and closed. In response, SDG&E is planning to remove the wells and has applied for a Coastal Development permit to undertake the work. Staff recommends approval of the resolution. (Director of Community Development) RESOLUTION 17573 AUTHORIZING THE ISSUANCE OF COASTAL DEVELOPMENT PERMIT NUMBER 066 FOR SDG&E TO REMOVE AND FILL EXISTING TEST WELLS LOCATED WEST OF BAY BOULEVARD, NORTH OF "E", STREET SUBJECT TO CONDITIONS OF APPROVAL Agenda -5- July 19, 1994 ORAL COMMUNICATIONS This is an opportunity for the general public to address the City Council on any subject matter within the Council's jurisdiction that is not an item on this agenda. (State law, however, generally prohibits the City Councilfrom 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 yellow "Request to Speak Under Oral Communications Fonn" avaiÚlble 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. Your lime is limited to three minutes per speaker. 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 substantiol 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" fonn available in the lobby and submit it to the City Clerk prior to the meeting. Public comments are limited to five minutes. 17. REPORT UPDATE ON SOLID WASTE ISSUES AND OUTLINE OF BUSINESS TERMS FOR PROPOSED AGREEMENT WITH JOHN SEXTON CONTRACTORS FOR TRANSFER STATION DEVELOPMENT - On 5/24/94, Council directed staff to move forward on negotiating a contract for the first phase development of a transfer station with John Sexton Contractors/Chula Vista Sanitary Service. The report forwards the business terms which have been agreed upon by Sexton and staff. The terms, as modified by Council input at this meeting, will provide the basis for the draft contract to be brought back for Council consideration. Staff recommends Council conceptually approve the business terms and direct staff to return with a proposed contract no later than 8/2/94. (Deputy City Manager Krempl) 18. RESOLUTION 17574 DIRECTING STAFF TO PREPARE AN APPLICATION TO THE ECONOMIC DEVELOPMENT ADMINISTRATION (EDA), U.S. DEPARTMENT OF COMMERCE, FOR FUNDING THE BORDER ENVIRONMENTAL TECHNOLOGY RESOURCE CENTER AND THE BORDER ENVIRONMENTAL BUSINESS CLUSTER (INCUBATOR PROGRAM); DIRECTING STAFF TO PURSUE RELATED ENDORSEMENTS, MATCHING GRANTS ANDCONTRmUTIONS; AND ACCEPTING THE UPDATED BECA PROJECT PLAN - The proposed EDA application will request funding for the Border Environmental Technology Resource Center and the Border Environmental Business Cluster on the environmental business incubator program. Staff recommends approval of the resolution. (Director of Community Development) Agenda -6- July 19, 1994 19. RESOLUTION 17575 APPROVING THE OPENING OF ESCROW FOR THE PURCHASE OF REAL PROPERTY LOCATED AT 746 AND 750 ADA STREET FOR DEVELOPMENT OF AFFORDABLE HOUSING AND DAY CARE FACILITY, WITH CLOSING OF ESCROW SUBJECT TO FINAL CEQA AND NEPA REVIEW, AUTHORIZING CITY MANAGER TO EXECUTE PURCHASE AND SALE DOCUMENTS IN A FORM APPROVED BY THE CITY ATTORNEY AND TO CONDUCT ALL NECESSARY PROPERTY ACQUISITION ACTIVITIES, AND APPROPRIATING HOME PROGRAM FUNDS THEREFOR - On 5/17/94, in executive session, Council authorized staff to finalize negotiations to acquire two parcels at the northwest comer of Industrial Boulevard and Ada Street for the purpose of developing the child care facility affordable housing development. Negotiations have been concluded, and escrow documents have been prepared. Staff recommends approval of the resolution. (Director of Community Development) 4/5th's vote required. 20. REPORT APPOINTMENT OF MEMBER TO SANDAG HOUSING ADVISORY COMMITTEE - The SANDAG Board has approved establishment of a committee to review existing State housing element laws and current legislation. The SANDAG Executive Director has requested appointment of a member of the Council. Staff recommends Council appoint a member to serve on the committee. (Director of Planning) 21. REPORT UPDATE ON CLEAN WATER PROGRAM ISSUES - An oral report will be given by staff. ITEMS PULLED FROM THE CONSENT CALENDAR This is the lime 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. Public comments are limited to five minutes per individual. OTHER BUSINESS 22. CITY MANAGER'S REPORTlS) a. Scheduling of meetings. 23. MAYOR'S REPORTlS) a. Russian Sister City. b. Ratification of appointment: International Friendship Commission - Lawrence Breitfelder. c. Children's Safe Havens. Agenda -7- July 19, 1994 24. COUNCIL COMMENTS CLOSED SESSION 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 pennitted by law to be the subject 0/ 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 ßMJ 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 tenninated at this point in order to save costs so that the Council's return/rom 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. 25. CONFERENCE WITH LEGAL COUNSEL REGARDING: 1. Existing litigation pursuant to Government Code Section 54956.9 . City of Chula Vista vs. the County of San Diego (Surcharge) . City of Chula Vista vs. the County of San Diego (Daley Corp. et ai, Real Parties in Interest) 26. REPORT OF ACTIONS TAKEN IN CLOSED SESSION ADJOURNMENT The meeting will adjourn to the Regular City Council Meeting on July 26, 1994 at 6:00 p.m. in the City Council Chambers. A Joint Meeting of the City Council/Redevelopment Agency will be held immediately following the City Council Meeting. COUNCIL AGENDA STATEMENT Item ¥a... Meeting Date' 7/19/94 ITEM TITLE: Proclamation - Commending Laura Dominguez - Miss California Junior National Teen-Ager 1994 SUBMITTED BY: Mayor Tim Nad~ (4/5ths Vote: Yes___ No~) . The proclamation Commending Laura Dominguez - Miss California Junior National Teen-Ager 1994 will be presented by Mayor Tim Nader to Ms. Laura Dominguez. Form A-113 (Rev. 11/79) 0/ tJt, ~ / COUNCIL AGENDA STATEMENT Item J.j C. Meeting Date 7/19/94 SUBMIt HID BY: Presentation of $5,000 to the Chula Vista Youth Coalition by Elite Racing, Inc. () Director of Parks and Recreatik (4/5ths Vote: Yes _ No X) TIEM TIlLE: A representative from McMillin Companies is presenting a check in the amount of $5,000 to the Chula Vista Youth Coalition. Sunny Shy, from the City of Chula Vista and Scott Mosher of the Boys and Girls Club will be accepting the check on behalf of the Chula Vista Youth Coalition. At its meeting of March 15, 1994, Council agreed to support a bicycle event to be conducted by Elite Racing, Inc. on July 10, 1994, by waiving fees in the amount of $3,000 for City-provided services and appropriate $12,000 from Redevelopment Agency funds to offset operational event costs. The agreement between the City of Chula Vista and Elite Racing, Inc. stated that Elite Racing, Inc. "shall make a donation of event proceeds in an amount not less than $5,000 to the City, which funds shall be directed to at-risk youth programming at the discretion of the Chula Vista Youth Coalition." J/(;" / COUNCIL AGENDA STATEMENT ITEM TITLE: Item g r; Meeting Date. j9) y Public Hearing: Consideration of the following applications filed by Charles Tibbitt for 0.67 unincorporated acres located at the southwest comer of Bonita Road and Lynwood Drive. a. GPA-94-03, Amend the General Plan From Office Commercial and Residential Low Density to Commercial Visitor. SUBl\UlTED BY: Director of PI,mniT1g PCZ-94-B, Prezone to C-V-P, Commercial Visitor with Precise Plan. Resolution I? ß£'nding the Genera1 Plan for 0.67 acres located at the southwest comer of Bonita Road and Lynwood Drive from Office Commercial and Residential Low Density to Commercial Visitor. Ordinance .?.ß~ending the Zoning Map or Maps established by sections 19.18.010 of the Chula Vista Municipal Code prezoning 0.67 'i:fl'j\Q~ acres located at the southwest co er of Bonita Road and Lynwood nrivd'l to C-V-P, Commercial Visit . Precise Plan. ~...{}\~G. ~'v f I ~-(,jV \l.tr'" ~tJ~ l? rJ;.yQ~'V (4/5ths Vote: Yes_No.lO City Manage~ b. IfßAW A tl ß ~Jqf 1'1. REVIEWED BY: The applicant, Charles Tibbitt, has submitted applications for an amendment to the General Plan and Prezoning for 0.67 unincorporated acres at the southwest comer of Bonita Road and Lynwood Drive. The proposal is to redesignate the site from Office Commercial and Low Density Residential to Commercial Visitor, prezone the parcel C-V-P, Commercial Visitor with Precise Plan, in order to establish a full service carwash. A Precise Plan for the proposed carwash received conditional approval by the Design Review Committee on February 28, 1994, contingent upon approval of the General Plan amendment and prezoning (see attachment 6). The proposal would also require a subsequent approval of a Conditional Use Permit By the plannil1g Commission after the site is annexed to the City. The Environmental Review Coordinator has conducted an Initial Study, IS-94-04, of possible environmental impacts associated with the project. Based on the attached Initia1 Study (see attachment 7) and comments thereon, the Environmental Review Coordinator has concluded that there would be no significant environmental effects and, therefore, recommends adoption of the Negative Declaration issued on IS-94-04. ßÞ7 IF ~I Page 2, Item ---Ø- b Meeting Da~12/94 . ')//1,); Y RECOMMENDATION: That the City Council adopt the Resolution and Ordinance amlndini / the Chula Vista General Plan from Office Commercial and Residential Low Density and Prezone to Commercial Visitor with Precise Plan. BOARDS/COMMISSIONS RECOMMENDATION: . On February 28, 1994, the Design Review Committee voted 4-0 to approve the project design subject to conditions and contingent upon approval of the General Plan amendment, prezoning and annexation of the property. The Resource Conservation Commission, on March 7, 1994, considered Initial Study 94-04 and voted 5-0 to accept the negative declaration. On May 11,1994, The Planning Commission voted 6-0 to deny the request based on traffic and circulation concerns. However, at the May 18, 1994 Planning Commission workshop meeting, the Commission agreed to reconsider the application to allow the applicant the opportunity to clarify the operation of the facility, and address the traffic and circulation issues raised at the meeting. On June 8, 1994, the Planning Commission, after reconsidering the request, voted 6-0 to approve the proposal (see attachment 4). DISCUSSION: The 0.67 acre site is irregular in shape and is located at the southwest corner of Bonita Road and Lynwood Drive within the unincorporated Sweetwater Community Planning Area. The property, which is the consolidation of an existing 0.50 acre frontage parcel with 0.17 acres from the southerly adjace~t residential lot, is presently vacant and relatively level, except for the southerly 30-40 ft which contains a 40 ft. high slope that separates the site from a single family dwelling located adjacent to the south. Adjacent land uses include commercial retail to the north (across Bonita Rd.) commercial office and retail to the east (across Lynwood Drive), residential to the south and 1-805 to the west across a flood control channel. The present Sweetwater Community Plan Designations (County General Plan) are as follows: Site Office Professional Commercial Residential Low Density (2dulac) East (across Lynwood Dr.) South West North (across Bonita Rd.) Neighborhood Commercial Residential Low Density (2.0 du/ac) Public, Semi Public Impact Sensitive Area (see exhibit D attachment 2) ~ ¿-_/ The present City General Plan ðe.<ÜW".t1ons are as foUows: I ")/ & Page 3, Item -!.L Meeting Date 7/12/94 / 07)11 Site Office Professional Commercial Residential (2 du/ac) Retail Commercial Residential (2 du/ac) Residential (2 du/ac) Open Space North (across Bonita Rd.) South East (across Lynwood Dr.) West (see exhibit B attachment 2 The present zoning (City and County) is as foUows: Site C-30, Prof. Office (County) R-R-l, Rural Residential(County) C-C, Central Commercial (City) North (across Bonita Rd.) South East (across Lynwood Dr) West R-R-l, Rural Res. (County) C-32,Convenience Comml.(County) Open Space (County) (see Exhibit C attachment 2) PUBLIC INPUT On February 10, 1994, the planning Department sponsored a public forum to familiarize the residents of the immediate vicinity and the Sweetwater Community Group with the applicant's request, the planning process and public hearing schedule. The issues raised at the public forum involves primarily concerns regarding the additional traffic and signal delays at the Bonita Road and Lynwood Drive Intersection. The residents pointed out that the County had recently approved a church/school in their neighborhood, and since the Lynwood area is served solely by Lynwood Drive, the proposed project would further contribute to the deterioration of traffic conditions on Bonita Rd. and the traffic signal phasing (delays) at the intersection. In regard to the proposed land use issue (fuU service carwash) and the project design, the residents in attendance stated that the project was attractive and offered a service presently unavailable in the immediate vicinity (the nearest full service carwash is located at the northeast corner of Broadway and "K" Street). ~t-3 ~¿ Page 4, Item / Meeting Date /94 1/~/Yi There were no representatives of the Sweetwater Community Planning Group at the public forum, but in a letter received by the Planning Department, the Group voiced the same concern as residents regarding an increase in traffic along Bonita Road, and delay in the traffic signal phasing at the Bonita Road Lynwood Dr./Plaza Bonita Rd. intersection (see attachment 8). On October 5, 1994, the applicant presented the proposed project to the Sweetwater Community Planning Group. The PJanning Group endorsed the project design and land use, but expressed concerns about the existing traffic at the intersection of Bonita Rd. and Lynwood Drive (see attachment 8). ANALYSIS In 1989, the City Council adopted a comprehensive update of the Chula Vista General Plan and, by reference, adopted the Sweetwater Community Plan for all the unincorporated parcels within this pJanning area. The Sweetwater Community Plan encompasses the unincorporated areas south of Route 54, east of I-80S, and north of the existing City boundaries (see Exhibit E, attachment 2). The Community Plan shows office commercial designation for the site and contains design criteria to guide the development of the area and maintain the community character. For the most part, the existing commercial uses along both sides of Bonita Road consist of specialty retail, service buildings and commercial offices. In regard to the issue of compatibility, the land use designations found in the "Gateway" area surrounding the Bonita Road and I-80S interchange range from Office Commercial to General Commercial and Central Commercial (see Exhibit B and C). The land use designations on this segment of Bonita Road are diverse and allow for a variety of businesses. Therefore, the Commercial Visitor designation appears to be compatible with the established land use pattern in the area and consistent with the commercial goals of the Sweetwater Community Plan. The redesignation of 0.17 acres of the southerly adjacent residential property from Residential Low Density (2 dulac) to Commercial Visitor will result in a more suitable parcel forcommercial development and will allow access to and from Lynwood Drive. The lot split. which is required and presently being processed by the County, will not affect the livability or the amenities of the property in question because a similar size parcel located immediately adjacent to the south will be consolidated to that parcel to retain approximately the same lot area. It is important to note that the City recently rezoned 2.23 acres of property located at the northwest corner of Bonita Road and Plaza Bonita Road from C-V, Commercial Visitor to C-C Central Commercial with the inclusion of a specific plan to provide for flexibility and control of certain land uses. The Specific Plan prohibits automobile-oriented uses such as service 'X &~ 'I t 47)15'/ stations, drive-thn1 restaurants, carwashes and other auto oriented uses. While that contradicts the staff's recommendation for this project, the issues and constraints in the case of the northerly parcel are substantially different. The principal factor that led the City to restrict automobile related uses for that parcel was the larger size of the parcel, the traffic conditions along Plaza Bonita Road, the relative proximity of the freeway on-ramp to the site, the street intersection, and the site exposure that this parcel has from all angles. Page 5, Item Meeting Date On the south side of Bonita Road, the traffic pattern and traffic conditions are different. Lynwood Drive does not have the traffic volume that Plaza Bonita Road has, and the freeway off-ramp does not restrict access to and from Bonita Road. Based on this and the information in the traffic report, the City Traffic Engineer concluded that the carwash can operate on the subject site without the friction that the northerly parcel would have with a similar use. Staff does, however, recognize the importanCe of this intersection, and has worked with the applicant to resolve the traffic concerns that the plAnn;l1g Commission and residents of the area have expressed. The street will be widened and a deceleration lane will be added in order to. allow east bound Bonita Road traffic to exit the travel lanes before slowing down to enter the carwash facility (see exhibit F-9). In addition, the conditional use permit, which is required for the proposed land use in the C-V zone, will be conditioned to ensure that the operation will not exceed activity levels and trip generation which is projected by and acceptable to the applicant. Conditions may include a monitoring program, and restrictions in hours of operation and pricing. A noise study was also conducted to determine the potential impact from traffic as well as from operational aspects of the proposed land use. The study concludes that the project will increase the existing noise levels by 0.2 db, which in the context of the existing 66 db noise level in the area is considered negligible. The existing land uses on this segment of Bonita Road generate relatively low traffic volume at the Bonita Road and Lynwood DrivelPlaza Bonita Road intersection. However the existing traffic at this intersection is very high and has been the concern of both the residents of the area and the Sweetwater Community Group. A traffic report was prepared to address the issue of traffic and signal delays raised at the public forum and the Sweetwater Community Group. After reviewing the report,the City Traffic Engineer concluded that the traffic generated by the carwash, although higher than office or even retail shops, is spread fairly evenly throughout the day and, therefore as illustrated in the table below, is not expected to create any signifu:ant changes to traffic or signal delays at the Bonita Road and Lynwoodl Plaza Bonita Road intersection. I:r> ~ ~. /' ~? Page 6, Item I Meeting Date 2! 4 7)rJ7 TABLE 2 SUMMARY OF LEVELS OF SERVICE FOR THE BONITA RD.lPLAZA BONITA ILYNWOOD INTERSECTION CONDITION AM Peak Hour PM Peak Hour Delay(sec) LOS Delay(sec) LOS Existing 24.0 C 26.6 D Existing + Project 24.1 C 28.6 D LOS = Level of Service (sec)= in seconds The following table also illustrates the traffic generated by three different land uses; an office, a retail building and the proposed carwash. Land Use Rate Intensity Daily trips Peak Hr Trips! I 000 Trips sq. ft. Carwash 900/ site 250 car/day 900 41 Office 20 12,000 sq.ft 240 31 Reiail 40 10,000 sq.ft 400 36 To ensure compatibility with area and conformance with the established community character, staff has recommended the following Precise Plan Standards, which we believe would ensure compatibility even if a use other than carwash occupies the site: I. Development in this property shall be in conformance with the Sweetwater Community Plan and Design Guidelines. 2. Development of this property shall be limited to a single tenant. 3. Building setbacks shall be as follows: Bonita Road Lynwood Drive Rear (south) Side (west) 20 ft. 20 ft. 25 ft. Oft. 1-2--tr ~., ~ / 4. 5. 6. 7. 8. 9. Page 7, Item -1Z ¿, Meeting Dat~/ ?19j1j Building height shall be ,limited to 2 1/2 stories or 45 ft., whichever is less. A 20 ft. landscape buffer shall be provided along both street frontages. Parking shall be screened from public right of way with dense laooOC'.aping, landscape mounding, low walls or a combination of any of the above solutions. Driveway along Lynwood Drive Shall be 28 ft wide. Business identification signs shall be limited to a low prof1le monument type sign, wall mounted signs and directional signs as permitted in the underlying zone. A lighting plan addressing security and light spills onto the southerly adjacent residential area shall be submitted as part of the building permit submittal package. 10. Developer of this property must agree to no net increase in water consumption, or to participate in water conservation or fee offset program the City may have in effect at the time of building permit issuance. CONCLUSION The redesignation from Commercial Office and Residential Low Density follows the pattern of other parcels along this segment of Bonita Road, and is consistent with City plAnning and zoning at other freeway intersections. The topographical separation (approximately 40 ft.) between the site and the residential neighborhood above and to the south, the safeguards established in the form of precise standards to address compatibility and the assessment of the City Traffic Engineer that the project will not adversely impact existing traffic conditions, leads staff to recommend approval of the requests in accordance with the fmdings and subject to the requirements and conditions contained in the attached resolution and ordinance. FISCAL IMPACT: Not applicable. ATTACHMENTS 1. City Council resolution and ordinance 2. Exhibits A-E and Development Proposal (Exhibit F-l tbru F-I0) 3. Planning Commission Recommending Resolution 4. Planning Commission Minutes S. Resource Conservation Commission Minutes 6. Design Review Committee Minutes 7. Initial Study with Disclosure Statement 8. Sweetwater Community Group loput (f:\bOmI:\pilnlUlla\luiJ~3..13) p--?" ¿- 7 THIS PAGE BLANK /;Þr ~ "(, t 9. A lighting plan addressing security and light spills onto the southerly adjacent residential area shall be submitted as part of the building permit submittal package. 10. Land uses in this site shall not create noise levels exceeding 6Sdb by clay and SSdb by night. 11. Development of this property must agree to not increase water consumption or participate in water conservation or fee offset program the City may have in effect at the time of building permit issuance. SECTION V: prls Ordinance shall take effect and be in full force the thirtieth clay from its adoption. "'_......-'cPa-9403....) . ""'I' Presented by Robert A. Leiter Director of Planning 17~ &~// ,--:---- THIS PAGE BIÄNK ~~;/d- ORDINANCE NO. ,;¿,ß5' AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING THE ZONING MAP OR MAPS ESTABLISHED BY SECT! 19.18.010 OF THE CHULA VISTA MUNICIPAL CODE P THE 0.67 ACRE PARCEL LOCATED AT THE S CORNER OF BONITA ROAD AND LYNWOO COMMERCIAL VISITOR WITH PRECISE PLA R'\O~ "¡-<:;)O WHEREAS, property consisting of approximately 0.67 acres located at the southwest corner of Bonita Road and Lynwood Drive and diagrammatically presented on the area map attached hereto as Exhibit A; and WHEREAS, a duly verified application for a Prezoning was filed with the Planning Department of the City of Chula Vista on November 1, 1993 by Charles Tibbett; and WHEREAS, said application requested to prezone 0.67 acre parcel C-V, Commercial Visitor; and WHEREAS, the Planning Department set the time and place for a hearing on said prezoning 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 1000 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 7:00 p.m. June 8, 1994 in the Council Chambers, 276 Fourth Avenue, before the Planning Commission and said hearing was thereafter closed; and WHEREAS, the Commission found that the project would have no significant environmental impacts and adopted the Negative Declaration issued on IS-94-04; and WHEREAS, from the facts presented to the Planning Commission, the Commission has determined that the prezone is consistent with the City of Chula Vista General Plan and that public necessity, convenience, and good zoning practice support the prezoning to C-V-P, Commercial Visitor Precise Plan; and, WHEREAS, the Planning Commission found that the project would have no significant environmental impacts and adopted the Negative Declaration issued on 18-94-04 and voted 6-0 (Tuchscher absent) to recommend that the City Council approve the prezoning of the parcel to C-V-P, Commercial Visitor Precise Plan; and NOW, THEREFORE the City Council of the City Df Chula Vista does hereby find, determine, and ordain as follows: INFORMATION PACKET SCANNED AT FIRST READING OF THIS ORDINANCE ON: ~<-<-l2tf /~/ / q 9+ - b/j _._.~___.._.t_..._~.___._. ..___.__..~_._____·_,__e~"_·_·"·___~_ SECTION I: Based on the findings and recommendations of the Environmental Review Coordinator, the City Council does hereby adopt the Negative declaration issued on IS-94-04. SECTION IT: the City Council finds that the prezoning is consistent with the City of Chula Vista General Plan and that the public necessity, convenience and general welfare and good Zoning practice, suppoJ't the prezoning to C-V-P, Commercial Visitor Precise Plan zone. , SECTION ill: that e parcel located at the southwest comer of Bonita Road and Lynwood Drive, as shown in e attached Zoning Map, be prezoned C-V-P, Commercial Visitor Precise Pial!. Section 19.56. 041 of the Municipal Code, the City Council finds that the following circums ces are evident which allows the application of the .p. Precise Plan Modifying District to the Su ~ect site. Commercial development usually located adjacent to high density residential development/zoning. In this , the 40 ft elevation difference between the subject site and the southerly adjacent re dential neighborhood provide an adequate transition to justify the coexistence of thi two land uses. However, in order to ensure that development on this property is mpatible with the surroundings the following Precise Plan Standards are necessary to low the City sufficient control to achieve the desire community character. 1. development in this p Community Plan and Design shall be in conformance with the Sweetwater idelines. 2. Development of this property sh be limited to single tenant. 3. Building setbacks shall be as follow : Bonita Road 20 ft. Lynwood Drive 20 ft. Rear (south) 25 ft. Side (west) 0 ft. 4. Building height shall be limited to 2 1/2 5. A 20 ft. landscape buffer shall be provided alon both street frontages. 6. Parking shall be screened with dense landscaping, Ian or a combination of any of the above solutions. mounding, low walls 7. Driveway along Lynwood Drive Shall be 28 ft wide. 8. Business identification signs shall be limited to low profile monument type signs, wall mounted signs and directional signs as permitted in the underlying zone. ~ b --/0 COUNCIL AGENDA STATEMENT Item Meeting Date 7/19/94 7 ITEM TITLE: a) .1.59 (, Ordinance Amending Sections 13 .14.100 and 13.14.150 of the Municipal Code relating to Sewage Pump Station Charges and Ordinance No. 2461 and repealing Ordinance Nos. 2181, 2286, and 2477 to dissolve Special Sewer Service Rate Areas b) Resolution I '].5t. Y Amending the Master Fee Schedule to delete Chapter XII, Engineering-Sewer, Section D, Pump Stations relating to sewage pump station fees and repealing Resolution Nos. 6833 and 8028 to discontinue the billing of sewage pump station surcharges. Direct<>, of ""¡¡Ii,. of JJ.rf rf/ City Manage~4 ~J (4/5ths Vote: Yes_ No X) SUBMITTED BY: REVIEWED BY: On May 17, 1994, the City Council adopted Resolution No. 17491 approving Council Policy No. 570-03, Sewage Pump Station Financing Policy. The Council Policy provides that all existing Sewer Service Rate Areas, which provide for the financing of maintenance and operation (MlO) costs of public sewage pump stations by property owners, be modified. Ordinance Nos. 2181, 2286, 2477 and Resolution Nos. 6833 and 8028 must be repealed and Ordinance No. 2461, all of which established Special Sewer Service Rate Areas must be amended to comply with the Council Policy. The Master Fee Schedule and Municipal Code need to be updated to reflect the provisions stated in the Council Policy. RECOMMENDATION: That Council: 1. Adopt Ordinance amending Sections 13.14.100 and 13.14.150 of the Municipal Code and Ordinance No. 2461 and repealing Ordinance Nos. 2181, 2286, and 2477 to dissolve Special Sewer Service Rate Areas. 2. Adopt Resolution amending the Master Fee Schedule to delete sewage pump station fees and repealing Resolution Nos. 6833 and 8028 to discontinue the billing of sewage pump station surcharges. BOARDS/COMMISSIONS RECOMMENDATIONS: Not applicable 7-1 Page 2, Item Meeting Date 7/19/94 7 DISCUSSION: Council Policy No. 570-03 states that all MlO costs for all City owned sewage pump stations within Chula Vista shall be paid from the City's general sewer budget. The policy provides that all of the existing Special Sewer Service Rate Areas within the City be modified as of July 1, 1994 to relieve affected homeowners or businesses of the obligation to pay the Special Sewer Service Rate applicable to the pump station. This ordinance and resolution will implement the requirements of the pump station policy. They must be enacted on July 19 in order to ensure that the billing of pump station fees is discontinued as of the first billing period subsequent to July 1, 1994. Where existing agreements or ordinances provide for developer contributions toward the payment of MlO costs, those portions of the agreements or ordinances which apply to developer contributions shall continue to be effective. Current pump stations are listed with the related ordinances and resolutions on the attached Table I. Maps are also included which show the location of the pump stations. Most of these pump stations are owned by the City and the MlO costs are financed through sewer service charges paid by the residents whose properties are part of sewer service rate areas. The San Diego Unified Port District and EastLake pump stations are financed differently and must therefore be treated differently under the new pump station policy. PORT DISTRICT PUMP STATIONS The San Diego Unified Port District is responsible for paying the MlO costs for three sewage pump stations located within Chula Vista. These pump stations are serviced by the City through an existing agreement with the Port District. The agreement would not be affected by the Council Policy because these pump stations are not owned by the City. The City will continue to provide the MlO for the pump stations, and the Port District will continue to reimburse the City for all related expenses. EASTLAKE GREENS PUMP STATIONS EastLake Development Company and the City of Chula Vista have an agreement (enacted by Resolution 16180 and Ordinance No. 2461) regarding maintenance and operation of two existing sewage pump stations (EastLake Parkway and Otay Lakes Rd) and one future pump station (Orange Avenue). Under this agreement, both the developer and the homeowners share in the MlO costs until, 1) enough units have been sold to allow the homeowners to finance the full MlO costs based upon a predetermined amount per unit or 2) seventy-five percent of a given number of the units have been sold. It was predetermined that the residents would pay a monthly flat fee of $0.75, $1.00, $1.50 or $2.00 per Equivalent Dwelling Unit (EDU) for the MlO costs based on the type of residence and whether the wastewater from the property flows through one or two pump stations. When either of the two above conditions are met, EastLake ?":L Page 3, Item Meeting Date 7/19/94 7 Development will be released from its obligation to pay for the MlO costs. Thereafter, all MlO costs would be paid by the property owners. In order to be in conformance with the Pump Station Council Policy, the agreement between EastLake Development and the City must be amended to relieve property owners of their obligation to pay a portion of the MlO costs. EastLake Development will continue contributing toward MlO expenses in the same proportion stipulated in the agreement. The City will periodically monitor all sewer connections that contribute flow into the pump stations and calculate the amount of revenue that these connected residences would have contributed for MlO costs. This amount will be paid out of the City's sewer budget and subtracted from the previous year's actual MlO costs for the pump station to detennine the amount due by EastLake and/or subsequent developers. EastLake Development will be released from their obligation to pay MlO costs when the estimated amount that the residents would have contributed equals or exceeds MlO costs in any given year or when 75 percent of the total number of tributary EDUs have been connected to the pump station. At that time, all the MlO costs for the pump station will be paid through the general sewer budget. OLYMPIC TRAINING CENTER PUMP STATIONS Three pump stations will serve the Olympic Training Center (OTC). This includes OTC No. 1, a temporary pump station located on the Criterium Course, OTC No.2, a pennanent pump station located at the Boat House and OTC No.3, a temporary pump station located between Otay Lakes Road and the future E. Orange Ave. All three pump stations have been designed to serve only the Olympic Training Center. OTC NO.3 pump station was constructed to allow the Olympic Training Center to discharge sewage prior to completion of the larger E. Orange Ave pump station, and it will not be needed after the E. Orange Ave. pump station is completed. No agreement has yet been adopted for these pump stations. It is proposed that these stations be maintained by the City through agreement with the Olympic Training Center, as allowed through Section E of the Pump Station Policy. The Olympic Training Center would pay all MlO costs, as well as costs associated with pump station removal. They will also be required to pay the costs of connection to a gravity system when available for the OTC No. 1, Criterium Course pump station and cost of connection to the E. Orange Ave. system for the OTC No. 3 pump station. AUTO PARK PUMP STATION Two agreements between the City of Chula Vista and the Chula Vista Auto Park to provide for the maintenance of the Auto Park sewage pump station and holding tank were approved by Resolution Nos. 17081 and 17082 on April 20, 1993. The developer is required to pay the actual pump station and holding tank MlO costs for the first year of operation. The agreement also stipulates that a sewer service rate area will be established to pay for MlO costs. The 7-J Page 4, Item Meeting Date 7/19/94 7 establishment of a sewer service rate area is no longer permitted by the Pump Station Policy. All MlO costs after the first year are proposed to be paid through agreement with the Auto Park Association, as provided in the Covenants, Conditions, and Restrictions for this development. RANCHO ROBINHOOD II PUMP STATION A Special Sewer Service Rate Area was not established for the Rancho Robinhood II sewage pump station. Payment of MlO costs was addressed in Resolution No. 8028 and the accompanying agreement between the developer and the City, which stated that the developer would pay all MlO costs associated with the sewage pump station with the option of assigning the MlO costs to the properties which would be served by the sewage lift station. The payment of MlO costs was later transferred from the developer to the Homeowner's Association. The Homeowner's Association was never formally established, therefore properties served by the pump station were individually billed for the MlO costs by the City without amending Resolution No. 8028. We propose to repeal Resolution No. 8028 and discontinue billing the 11 homeowners for the MlO costs of the sewage pump station. This is consistent with the council policy adopted on May 17, 1994. The Council Policy states that the actual cost of bypassing or removing a temporary sewage pump station from service and connecting the collection system to an adjacent permanent gravity system shall be paid from the regular sewer budget, and that this cost (less any remaining deposits collected for that purpose) shall be distributed among all properties connected to the Chula Vista sewer system. MISSION VERDE AND CANDLEWOOD PUMP STATIONS Two temporary pump stations, Mission Verde and Candlewood, are scheduled to discontinue operation in 1995 and 1996, respectively, after the Rice Canyon Trunk Sewer is constructed. A tentative subdivision map for Rancho del Rey SPA III was approved by Resolution No. 16266 on July 18, 1991. The subdivision map conditions provide for the removal of the Mission Verde and Candlewood sewage pump stations by the developer. Prior to approval of the final map, the owner and the City shall enter into an agreement to establish the scope of work and the amount to be reimbursed by the City to the subdivider for performing said work. The cost of removal and connection to gravity sewers for the Mission Verde and Candlewood sewage pump stations will be paid through the general sewer budget. The Master Fee Schedule must be amended to comply with the Council Policy. Chapter XII Engineering-Sewer, Section D (Pump Stations), which refers to sewage pump station charges and delinquent payments, will be deleted. Section 13 .14.100 of the Municipal Code must also be amended to conform with the Council Policy. Parts A through E will be deleted and Part 7,,1{ Page 5, Item Meeting Date ? 7/19/94 F will be revised. Language similar to the Council Policy will replace most of the deleted sections. FISCAL IMPACT: In accordance with Council Policy No. 570-03, all Special Sewer Service Rate Areas will be dissolved and the MIa costs for all sewage pump stations will be paid out of the general sewer budget to the extent that developer payments are not provided. The total estimated annual cost of pump station MIa is $141,000. Approximately $28,000 of that amount is presently fmanced out of City sewer funds. Since there will be no increase in the sewer service charge for Fiscal Year 1994-95, it is estimated that the annual loss in revenues will be approximately $113,000 for 1994-95. This amounts to an additional cost to the City of approximately $0.22 per Equivalent Dwelling Unit per month. In future fiscal years, this amount will have to be added to the overall sewer rate. There will be no immediate impact on the sewer service charge because of reserves in the sewer funds. The MIa costs of the Olympic Training Center and Chula Vista Auto Park pump stations are proposed to be paid by those entities under separate agreements with the City. The cost of removing the Mission Verde and Candlewood sewage pump stations and reconnecting the sewers to gravity systems will be addressed in the agenda statements for the reimbursement agreement with McMillin Development, developers of Rancho del Rey. BVH:LY-081 Attachments 1. Table 1: Sewage Pump Stations I 2. Sewage Pwnp Station locations <1) 3. Minutes 5/17/94 . ~~ 4. Sewage Pump Station Policy d~þI.h~~ent ~O M:\HOME\ENGINEER\AGENDA \SEWPUMP.AGE 7'> TABLE I SEWAGE PUMP STATIONS Name Resolutions/Ordinances Establishin~ Rate Areas 1. 2. 3. 4. 5. 6. 7. 8. Chula Vista Woods Subdivision Candlewood Subdivision Mission Verde Subdivision Terra Nova Subdivision (Woodcrest) Rancho Robinhood II EastLake Parkway (A) Otay Lakes Road (B) East Orange Ave (C) Ordinance No. 2181 Resolution No. 6833 Ordinance No. 2286 Ordinance No. 2477 Resolution No. 8028 Ordinance No. 2461 Ordinance No. 2461 Ordinance No. 2461 The Chula Vista Auto Park Sewage Pump Station Supplemental Subdivision Agreement was approved by Resolution No. 17082. No Ordinance has been passed establishing a special sewer service rate area. The CC&R's for the Auto Park provide for the M/O costs to be paid by the Auto Park under an agreement with the City. M: \home\engineer\agenda\sewpump .age 7--¿ ORDINANCE NO. ø2$?t AN ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTIONS 13.14.100 AND 13.14.150 OF THE MUNICIPAL CODE RELATING TO SEWAGE PUMP STATION CHARGES AND ORDINANCE NO. 2461 AND REPEALING ORDINANCE NOS. 2181, 2286, AND 2477 TO DISSOLVE SPECIAL SEWER SERVICE RATE AREAS WHEREAS, the City of Chula Vista provides sewer service within the boundaries of the City, and WHEREAS, pursuant to Health and Safety Code Section 5471, on December 16, 1986, the City Council adopted Ordinance 2181 for the Chula Vista Woods Subdivision; on October 11, 1988, the City Council adopted Ordinance 2286 for the Mission Verde Subdivision; on June 11, 1991, the City Council adopted Ordinance 2461 for the EastLake Greens Subdivision and the Olympic Training Center and on September 17, 1991, the City Council adopted Ordinance 2477 for the Woodcrest Terra Nova Subdivision establishing special sewer service rate areas for said subdivisions with a monthly surcharge to be assessed for each unit or property, and WHEREAS, on May 17, 1994, the City Council approved Resolution 17491, adopting Council Policy No. 570.03, the Sewage Pump Station Financing Policy, and WHEREAS, Section C, part 3, of Council Policy No. 570.03 states that "all existing Special Sewer Service Rate Areas shall be modified as of July 1, 1994 to relieve affected homeowners or businesses of the obligation to pay the Special Sewer Service Rate applicable to the pump station with the City". NOW, THEREFORE, BE IT ORDAINED AS FOLLOWS: SECTION 1: Ordinances 2181 , 2286, and 2477, which established Special Sewer Service Rate Areas for the financing of MIO costs of sewage pump stations, shall be rescinded with the adoption of this ordinance. The portion of MIO costs for City owned sewage pump stations previously paid through sewer service rate areas shall be paid from the general sewer budget. SECTION 2: Where existing agreements or ordinances provide for developer contributions toward the payment of MIO costs, those portions of the agreements or ordinances which apply to developer contributions, including expiration dates if any, shall continue to be effective. SECTION 3: Amend Ordinance No. 2461 for the EastLake Greens Subdivision to relieve affected property owners and schools of the obligation to pay the Special Sewer Service Rate. //1 ~J ..........'_.........______.__________n ___.,__._____..____"______ Ordinance No. ;.5',v Page 2 The developers will continue to be obligated for their share of payments of the MIO costs associated with the pump stations. Sections VII, VIII, IX, X, XI, XII of Ordinance No. 2461 shall be deleted. The following sections of Ordinance 2461 will be revised as follows: SECTION I. The City Council of the City of Chula Vista hereby desÜmates establishes a speeiB.! seVIer sefYÌ0e ratc B.rei!. with three component zones, within the boundaries of Tentative Subdivision Map No. 88-3 and Parcel Map 16318 of the City of Chula Vista, as shown on Exhibit 1 attached hereto, for the purpose of providing special sewer services to said area B.f1E1 zones through three temporary sewer pump stations, and to subsequently provide customary service through a gravity-flow system. Said sewer services shall be provided by the City of Chula Vista in conformance with the contract between the City of Chula Vista and Eastlake Development Company, dated January 9, 1990, as amended by agreement dated June 4, 1991. The name of the proposed component zones are special B.rei!. is "EastLalæ CrceAs Special Rate Area", '¡¡ith Sti6areaS orZOACS "A", "B" and "Coo. SECTION III. The domestic sewer service charge for each single-family dwelling unit within the EastLake Greens component zones Special Rate Area shall be equal to the amount charged other similarly situated customers within the service area of the City. SECTION IV. On or about July 1 of every year, commencing on the July 1 immediately following placement of each sewer pump station into service and acceptance by City of responsibility for ef its maintenance and operation, the Director shall determine the estimated costs for maintenance and operation of each pump station for the following fiscal year. The determination shall be made for each component zone. If said estimated maintenance and operation costs exceed estimated funds to be paid by the City collected from tisers for any zone, and the Director has not made a determination for that zone that the "initial rates" no longer apply, the Director shall notify EastLake Development Company andlor its successors in interest of the amount of their portion of the surcharge, pursuant to the First Amendment to Agreement between City and EastLake dated June 4, 1991. The total amount of EastLake/successors surcharge to be paid shall be the difference between said total estimated maintenance and operation costs, and the amount 7A~,)., Ordinance No. ..z.59/' Page 3 estimated by the City that would have been allocatable to the users. te-be eolleeted ffeRl l:Isers, as deseri6ed in this seetien, and Seetians 5 !HIE! 6. Fellewing E!eterlflinatisn ef the tetftJ. alflstJnt sf tlte abo'¡e de3eribed sureharge eaeh year, the The Director shall determine how to apportion the total surcharge among EastLake and their successors in interest, based on the following formula: Each party (EastLake and successors) shall be responsible for the same percentage of the total surcharge as that determined by dividing the number of EDUs for which building permits have not been obtained by July I within that party's ownership by the total number of EDUs within each zone subarea for which building permits have not been issued by July I of that year. EDUs shall be evaluated based on the "EDU factor" described below. The Director may, at his discretion, review the status of funds available for the purpose of operating and maintaining said pump station at any time during the year. If, as a result of said review, the Director determines that there will be insufficient funds estimated available in any comDonent zone stJbarea IHlIfIP stlltion ÍtIflè to provide for said maintenance and operation and that the ÍtIflè balance is likely to be depleted within 30 days, the Director shall notify EastLake in writing of such situation and require EastLake to provide sufficient funds to provide for said maintenance and operation to July 1 of that fiscal year pursuant to the agreement between the City and EastLake as amended, dated June 4, 1991. EastLake shall, within 30 days of receipt of said notification, deposit said required funds with the City treasurer. When the next annual determination is made of the surcharge as described above, the "loan" by EastLake shall be considered "estimated cost" and the value of the surcharge shall be determined after such credit. The Director shall determine for any zone that the "initial rates" no longer apply when either and that "perffi!HIent rtlte3" apply '"lhen Ite or she deteflfline3 either tltat I) ª sufficient number of units are connected so that the total of the number of units times the appropriate initial rates will be greater or eaual to ftJnd3 are being eollected froRl users to pr-eviE!e faf the annual maintenance and operation costs, or 2) within that zone, 75 % of the total number of EDU s within the zone have been connected to the pump station. First sentence only of Section V will be revised as follows: SECTION V. The "EDU factor" for all land uses within the component 7/1-3 Ordinance No. .J59/' Page 4 zones SfJeeial se·...er sef'iÌee rate ar-ea. shall be as follows: SECTION VI. t. desigHated SfJeeial e¡¡erati6Hs ElHd maiHteHllßee sHreharge shall Be assesseè for eooh Hser sertiee 'llithiR the three eempofleRt ZORes. EIlstLaI.re Speeial Rale ¡\rea. "Initial rates" shall be in effect for all three zones commencing from the date of enactment of this ordinance until such time as the Director makes a determination for that zone that "initial rate" no longer apply. FollowiRg sHeh åelermiHati6R, the "¡¡ermaHeRt rates" shall Be iH effect for that Z6f1e. While initial rates are in effect. the pump station costs payable by the City will be the mORtAl)' amoHHt ¡¡aid BY e¡¡eR eHstomer 'l\,itRiR MY oofle is determined by multiplying the applicable zone rate factor appropriate by the "EDU" factor listed in Section 5 above. For "iRitial I'ftte" , Tthe zone rate factor for zones A and B is one dollar ($1.00) per month. The initial zone rate factor for zone "C" is two dollars ($2.00) per month. For "¡¡erffiafleHt rtiles": The zafle rille footer for Z6Res A ElHå B is aBtftÎHeå BY åividiRg the estimateè ElHflHal maiRteflEIHee aRå a¡¡eratiaH eests far tRe ¡¡limp stiltiaH seryiHg that ZOfle BY the tatill RHffiBer 6f EDUs, res¡¡eetiyely, OH liRe iR that zeRe the JHRe 30 preeediRg the fiseal year fer whiell the rate is te Be estilblished. The OOHe rate faeter far ZOHe C is 6Btilifted BY diYidiHg the estimated aflftHal maiftteflMee aRd 6pel'ftlÏaft easts far the ¡¡Hmp slfttiaR servieiRg ZORe C by the totill H\læ6er sf EDUs eR liRe ift that leRe 6R the Jlifte 30 preeediRg the fiseal year fer ';:hieh the rate is BeiRg established, afld addiHg the valHe ef tI1e zøRe sHreharge far zeRe B as ealelilated aBa",e. The meHthly eharge shall Be ealeHlated Må eelleeted admiRistratively, HRless it remilts iR aR iRerease. IR that e',eHt, the prepesed ifler-ea.se sRall Be re·tieweè by Celifteil iH adyaHee at a ftatieed pHblie heariHg. SECTION 4: read as follaws: That Section 13.14.100 of the Chula Vista Municipal Code is amended to Section 13.14.100 Sewage Pump Station Charge - Dispesitieß ee RevelHle DcteFfHiß8tieß ee Ch8rges Sewa!!e PumD Station Financin!! A. All the MIO costs for all City owned sewage pump stations within Chula Vista. which costs are in excess of funds deposited by developers responsible for the construction of said Dump stations. shall be paid from the general sewer bud!!et. ?rJ-1 Ordinance No. ~59¿' Page 5 B. When a permanent sewage pump station is approved for construction and has been constructed and acceDted by the City. the develouer shall deDosit the M/O cost of the pump station for a period of 20 years based on an estimate by the City. .L. As an alternative to depositing the full 20 year M/O costs with the City immediately upon comDletion of the sewa!!e DumD station. the develouer and the City may enter into an agreement providing for the M/O costs to be paid by the developer over a period of time. In this instance. the commitment to pay shall be guaranteed with adequate security. one form of which may be a lien upon the property to be developed. The amount of said lien may be adiusted over time as property is sold or as payments are made. No portion of the lien amount shall be reassigned to a buyer of a developed property. 2. In instances where the property to ultimately be served by a permanent pump station is not fully contained within the ownership of the developer who builds the pump station and an agreement with the City has been entered into as provided above. durin!! a !!iven year that developer shall be responsible for the portion of the M/O cost which is proportional to the number of EDU's he has connected to the DumD station as compared to the full number of EDU's connected to the pump station as determined by the Director. In instances where the develoDer has deposited the full estimated 20 year M/O costs. a subsequent developer using the pump station shall be required to reimburse the original developer for previously deposited M/O costs (plus interest) for EDU's to be connected by that subsequent developer. ;h For temporary sewa!!e DumD stations. where the property to ultimately be served is not wholly within the ownership of the develouer who builds the pump station. each subseauent developer connecting EDU's to the station shall be resDonsible for the payment of a Dortion of the annual M/O cost which is proportional to the number of EDU's that developer has connected as compared to the total number of connected EDU's. C. For all active sewage pumD stations. the total of M/O costs. including costs of reDlacements. utilities. uersonnel. equipment. supplies and overheads of all City sewage pump stations shall be calculated by the City on a calendar year basis. That total. plus an estimated amount for inflation. ifany. less deposits or contributions estimated to be on hand at the end of the fiscal year current at that time. shall be included as a system cost in the normal City-wide sewer budget and distributed among all prouerties within the City ?/J,5 Ordinance No. .:J..5 9 ¿, Page 6 connected to the Chula Vista sewer system during the fiscal year beginnin!! on the immediately following July 1. D. The actual cost of bypassin!! or removin!! a temporaI)' sewage pump station from service and connecting the collection system to an adiacent permanent gravity system shall be paid from the re!!ular sewer bud!!et. and that cost (less any remaining deposits collected for that uuroose) shall be distributed among all uroperties connected to the Chula Vista sewer system. E. This section shall not be applicable to any sewaæ Dump station not owned by the City or to any a!!reement with a public a!!ency or urivate entity concerning such a uump station. A. The avmer ar aeelipallt af allY pareel af real praperty eORReeteà to a se'Nage pliæp StatiOR ·...·hieh is a part of the ...iastewater systeæ of the City alld sitliateà ·.vitÀjll a Speeial Se',ver Serviee Rate Ar-ea establisheà by the City CaliReil shall pay aR aRRlial Se·....age Plimp StatiOR Chflfge iR the afRaliRt set forth iR the ordiRRRee estaßlishiRg slieh Area, ar as aæeAdeà by the City CaliAeil anAlially by arcliAaAee, as desigAateà f-ar adæiAistrative eOlWellieRee OAly iA the Master Fee Sehedlile. The aAAlial eharge shall be pr-a rated for Ae·.... or r-estareà serviee, !!Ad shall be ealel:Ilated aAd assesseà plirsliallt to this slibdi°"¡siaR !!Ad slibdivisioR C hereof aAd ealleeted iR aeeardallee with SeetioA 13.11.150. B:- All revelllie derived fraIR sewage plilRp StatiOA eharges shall be depositeà iAte a separate fliAd ar aeeeliAt deeIReà appropriate by the Direetor of PiARRee. &.- Sewage plimp StatiOA eharges shall be based lipeA flill eost reeevery of all eity expellses, illellidillg, l'H1t lIet liæiteà to, laber, æaterials, eftllÌfJIReAt, pevier aAd water eosts, eIRer~eAey alarms, aAd averhead easts experieAeed by the City rclatŸ..e ta eaeh se',vage plimp StatiOA, iAellidiAg pravisiaA of a reserve (fer eash flow and a reasoAab1e bliffer agaiAst lar~e variatisA iA allAlial aS3es3æellt), AOt less thaA 25 perceAt Aor æore than 50 pereeAt af the estiAlated eosts for AlaiAteAaAÐe aAd speratioA fur the eAsliiAg yetii'. f.flY defieit or exeess resliltiAg furAl a differeAee betweeA the estiAlated eosts !!Ad aetlial easts shall by eOffeeteà by adjlistmeAts tat he rates eharged to the Praperty sWllers dliriRg tile slieeeeàiAg year. f.fter the reserve reaches at least 25 perceAt, blit AOt Alor-e thall 50 perceAt, it shan be AlaiAtaiAed ta provide Reeessary eash flow fer operatioRs aAd a reasollab1e buffer ¡¡gaiAst large variatioAs iA aRnlial assessæeAts. Every yetii' , eSAlAleReiRg iAlæediatcly followiAg plaeeAlellt of said se'Nage pH Alp stfttiSA iRto serviee Bfld aeeeptaAÐe by eity of Fe3poAsibility fer is æaiflteAaflee RRd aperatiaR, the Direetor ef PHelie \V arks shan deterIRille t-he estiAlateà eests far æaifltellanee aAd aperatieA of said plimp StftliOA far the eliffeAt [¡seal year, iAelHdiAg tile 25 to 50 % r-eserve, (Rel:liired PHAds), aAd shall detefAliRe the aetHal fliflds OA depasit with the City, whetller reæaiAiAg froIR prior year operetiaAs ar from DeO¡eloper, estiAlateà to be ¡p¡ailable as of hlAe 30 7/1' t t ,j Ordinance No. ,),59 t Page 7 (f.emal fIlRds). Tfle aRRllaI Sev:age Pllmp StatiOR Charge shall be tletermiReå by the fallowillg fÐrffillla: (Req\lireå P\llItlS ffiill\lS I.etllal P\llItlS) divitleå by the 1I\llRber of etistoffiers eallReeteå to t-he se·....age ptiffip SlfttiOR Oil said J\lfle 30. Por teffij30rary se...:age p\lffip statiaRs, the aemal east af Bypassillg IIftd feffiovillg fmffi the s!:fttiaR, IIfttl reeaRReetiRg the seF¥eå SlIbtlivisioR to the atljaeeRt permEllleRt gravity system shall be pl!ÎtI frem the praeeeås af sl!Îd Charge (aRtI Develeper f\llltls a"'l!Îlable, if RIIY). Hawever, the Charge far the last ftill year shall flat iRerease aBo...e the amO\lllt ehargeå tile yetH" preeeåillg the last yee.r. If additiollal f\llltls are reE¡tiireè ta pay slleh tffiflsitiaR eosts, allll\lal Charges shall eOlltiRtie to Be assesseå \lRtil stieh eosts are eompletely pl!ÎtI. UPOII that eveR, the Speeial Sewer Serviee Rate Area shall Be tlissal'¡eå. The Director shall file a report with the City Clerk alllltiall y settiflg forth the tleseriptioR af eaeh preperty affeeteå alltl the affiOtillt of the prapaseå Charge. Ð:- The eharge shall be eolleetetl ill ffioflthly or bi ffiallthly illstallffieRts ..:ith the water bill, IIftll\lally all the tax Bill, ar atherwise as the City tleterffiilles. S\leh ElllfI\laI ehlifges are sti6jeet to i¡¡terest, late paYffiellt pellallies, alltl other eharges as set farth iR See!ÍolI 13.11.150. &. The eharge, together '.vith illterest eosts, late eharges alltl reasollaBle attoffiey's fees shall be a eharge alld a eORtilllliRg ¡¡ell 011 the property serveå, reeortlable IIfttl foreclosaele iR the same maRRer as a mortgage ar by sale p\lrstiaRt ta Ch'il Cade SeetioRs 1367 RlltI 2924, aRtI ellforeeaBle iR the saffie ffiallller as aRY tleliRltiellt tax, if ealleeleå aR Ihe tax btlh F. It is a pllFpase anti illteRt ef this seetioR to apply the proeeåtif-es hereiR 10 the ¡mistiRg Sf'eeial sewer sef\'iee rElte areas or zaRes, te the end that all s\leh aree.s ar Lalles, preseRt or f-tilllre, shall be estElblisheå, have IIftlltilil eharges assessetl, eolleeteè, alltl ellf-oreeå IIpaR defaült iR the saffie ffiallller. All previous agreements and ordinances relating to special sewer service rate areas or zones are hereby amended to be in conformity with Council Policy No. 570.03 these previsioRs. This section is enacted pursuant to an exercise by the City Council of its police powers as a Charter city, and pursuant to Health and Safety Code Section 5471, Government Code Sections 54300 et seq., or any other applicable state law. All Rew speeial sewer serviee rElte areas or zolles hereafter ereateè shall be ereated BY all ortliRallee stiB3laRtially iR aeeordRllee ·....it-h alld pllrsllallt ta t-he ffiOtlel artlillaflee ealltEiiRillg the Feqtiirelllellts af this sectiall prepareå by the City Attaffiey alltl IIfJpraveå by City COlllleil. SECTION 5: read as follows: That Section 13.14.150 of the Chula Vista Municipal Code is amended to 7/1' 7 Ordinance No. ,2.59 ¿ Page 8 13.14.150 Payment of Sewer Service aDd Pump Delinquency-Discontinuance of Connection-Backbilling and Penalty. Stati6D Charges-Penalty for Service- When- Unla wful A. Billing and Payment. All sewer service aHd pllffiþ sætieH epefl!tÌOH II!ld ffi8:ÌHteftftflee charges shall be billed upon a monthly or bi-monthly basis, or on the Tax Bill, as determined by the City Council, and shall be payable upon the billing of such charges to the owner or the occupant. B. 1. Director's Report. Annually, not later than August 10, the City Clerk shall set the Report of the Director of Public Works filed pursuant to Section 13.14.100 and/or 13.14.110 for public hearing before the City Council and duly cause Notice thereof and of the filing of said report to be published once at least ten days in advance thereof in a newspaper of general circulation published in the City of Chula Vista. 2. Notice to Property Owner. When the Director of Public Works requests that such charges be collected on the Tax Bill for the first time, the City Clerk shall, in addition to the notice required by subsection B.l., cause to be mailed to each person assessed for each property described in the report, at the address shown on the last available assessment roll, Notice of the filing of the report and of the date, time, and place of the public hearing thereon. If such charges are collected on the Tax Bill pursuant to such Notice, annually thereafter such notice need not be given but only the notice by publication required by subsection B.1. C. Council Action. The City Council shall conduct a public hearing to consider the amount of such charges, and whether they shall be collected on the Tax Bill. The first year said charges are proposed to be placed on the Tax Bill, such action is subject to a majority protest. 1. If a majority of the owners of affected properties protest placement on the Tax Bill, the charges shall not be so collected, but shall be established by City Council Resolution and collected pursuant to subsection D hereof. 2. If there is no majority protest and the City Council determines to place the charges, or some of them, on the Tax Bill, for those to be collected on the Tax Bill the City Council shall by ordinance approve the report of the Director of Public Works, along with any corrections thereto and establish the amounts of the se.....age pllffi3 sffitioH eharges RHd/ or such sewer service charges to be placed on ?/I'Y Ordinance No. .;.5'9 ¿, Page 9 the Tax Bill. The City Clerk shall endorse thereon that it is the report finally approved by the City Council, and forward the appropriate data forthwith to the County Auditor for enrollment on the Assessment Roll, and ultimate collection by the Tax Collector on the Tax Roll in accordance with Health and Safety Code Section 5473 et seq.. Pursuant to Health and Safety Code Section 5473.8, all laws applicable to the levy, collection and enforcement of real property taxes including, but not limited to, delinquency, correction, cancellation, refund and redemption, are applicable to such charges. a. Pursuant to Health and Safety Code Sections 5471 and 5473.10, the City Council shall establish by ordinance the charges as those set forth in said report (along with any corrections) and hereby establishes the basic penalty for delinquency in the amount of 10% of the delinquent amount, plus one and one half (1-112) percent per month for nonpayment of the charge and basic penalty (designated for administrative convenience only in the Master Fee Schedule), which shall also be collected by the Tax Collector on behalf of City. b. The Director of Finance shall give Notice to the owner of any parcel when any such charges become delinquent for 60 days, and of any penalties and interest thereon as provided herein, and that they shall constitute a lien with the force, effect and priority of a judgment lien against the lot or parcel against which it was imposed, good for three years from recordation, if recorded. The Director of Finance shall record with the County Recorder, pursuant to Health and Safety Code Section 5473.11, a certificate specifying the amount of the unpaid charges and penalties and interest thereon, when any such charges become delinquent for 60 days. D. Non-Tax Bill. Alternatively, the charge and the billing therefor may be combined with other utility bills and separately designated, or otherwise billed and collected, as determined by the City Council. Said charge, together with penalties and interest, and reasonable attorneys' fees (hereafter collectively referred to as Charge), shall be a charge on the property served and shall be a continuing lien upon the property served, the lien to become effective upon recordation of a Notice of Delinquent Sewer Service (aml/er Sewage Püm¡¡ S!!ItiOR) Charge. Each such Charge also shall be the personal obligation of the person who was the owner of such property served at the time when the Charge was levied. The personal obligation for Delinquent Sewer Service (imd/er Se'Nage Püffi¡¡ S!!Itieß) Charges shall not pass to an owner's successors in title as their personal obligation unless expressly assumed by them. 7/1 ~1 Ordinance No. elf?/,. Page 10 Any Charge imposed in accordance with this ordinance shall be a debt of the owner of property served from the time the Charge is levied. At any time after any charges have become delinquent, the City Engineer may file for record in the office of the San Diego County Recorder, a Notice of Delinquent Sewer Service (lUIcl/or Sewage Pamp StfttiOfl) Charge as to such property served, which notice shall state all amounts which have become delinquent with respect to such property served and the costs (including attorneys fees), late penalties and interest which have accrued thereon, and the amount of any charges relating to such property served which is due and payable although not delinquent. The notice also shall contain a description of the property served with the name of the record or reputed record owner of such property, and the name and address of the trustee authorized by the City to enforce the lien, if by nonjudicial foreclosure as provided below. Immediately upon recording of any Notice of Delinquency pursuant to the foregoing provisions of this Section, the amounts delinquent, as set forth in such notice, together with the costs (including attorneys' fees), late penalties and interest accruing thereon, shall be and become a lien upon the property served described therein, which lien also shall secure all costs (including attorneys' fees), late penalties and interest accruing thereon. In the event the delinquent charge and all other charges which have become due and payable with respect to the same property, together with all costs (including attorneys' fees), late charges and interest which have accrued on such amounts, are paid fully or otherwise satisfied prior to the completion of any sale held to foreclose the lien provided for in this ordinance, the City Engineer shall record a further notice, similarly signed, stating the satisfaction and release of such lien. Each lien may be foreclosed as and in the same manner as the foreclosure of a mortgage upon real property under the laws of the State of California, or may be enforced by sale pursuant to Sections 2924, 2924(b), 2924(c) and 1367 of the California Civil Code, or any successor statute or law, and to that end, the right to enforce the lien by sale is hereby conferred upon the City and its trustee designated in the Notice of Delinquent Charge, or a trustee substituted pursuant to California Civil Code Section 2934a. The City shall have the power to bid for the property served at a foreclosure sale, and to acquire and hold, lease, mortgage and convey the same. Suit to recover a money judgment for unpaid charges, costs, late penalties and attorneys' fees shall be maintainable without foreclosing or waiving the lien securing the same. In any action by the City to collect delinquent charges, accompanying late charges or interest, the prevailing party shall be entitled to recovery of its costs and reasonable attorneys' fees. E. Penalty for Delinquency. If the sewer service aRM or pamp StatiOfl charge is not paid before the close of business or postmarked before midnight of the final date for payment as shown on the billing, a basic penalty of ten (10) percent of the charge(s) shall be added thereto, plus one and one half (1-112) percent per month for nonpayment of the ?A ~ J(/ Ordinance No. ~59t Page 11 charge and basic penalty (designated for administrative convenience only in the Master Fee Schedule); provided, however, that when the final day for payment falls on Saturday, Sunday or a legal holiday, payment may be made without penalty on the next regular business day. F. Service Discontinuance. In the event the owner or occupant of any premises shall be delinquent in payment of the sewer service 8.Hd/6£ ptlffi3 statiøH charge and such delinquency continues for a period of five days after the final date for payment of such charge, the city shall have the right, forthwith and without notice, to discontinue sewer ftßd/6r ptlffip stllti6H service to such delinquent owner or occupant, and sewer fIIldier p\:lffip stfttieR service shall not again be supplied to such person until all delinquent sewer service IIRd/or p\:lffip stlltieR charges plus the penalties thereon as herein provided have been paid. The sewer service aAd/or pUffip statiOA charges may be collected by suit in any court of competent jurisdiction or any other manner. G. Unlawful Connection. In the event that any parcel or building is determined by the Director to have been unlawfully connected to the public wastewater system, the City shall have the right to terminate sewer aAM 6£ pUffip stlltieH service to such parcel or building as provided in section 13.06.110. Sewer aRd/or p\:lffip statiOR service shall not again be supplied to such parcel or building until all delinquent sewer service aRdier p\:lffip statiOR charges which have been accumulated during the current ownership of the parcel or building, plus a basic penalty of 10% of the delinquent sewer service aRefer p\:lffip statiOA charge plus one and one half (1-1/2) percent per month for non-payment of the charge and the basic penalty (designated for administrative convenience only in the Master Fee Schedule), has been paid. SECTION 6: The City Clerk of the City of Chula Vista is hereby directed to publish this ordinance within fifteen (15) days after its passage in the Chula Vista Star News, a newspaper of general circulation published in the City of Chula Vista. SECTION 7: Effective Date. This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. 711'1/ A7?~bY B~/~ City Attorney Presented by John P. Lippitt Director of Public Works (f:\homc\engineer\sewer\sewpwnp.ord) (July 11, 1994) 7/1"'/)... Ordinance No. ,;Jš9t Page 12 RESOLUTION NO. 175'&2(' RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE MASTER FEE SCHEDULE TO DELETE CHAPTER XII, ENGINEERING-SEWER, SECTION D, PUMP STATIONS RELATING TO SEWAGE PUMP STATION FEES AND REPEALING RESOLUTION NOS. 6833 AND 8028 TO DISCONTINUE THE BILLING OF SEWAGE PUMP STATION CHARGES WHEREAS, on May 17, 1994, the City Council adopted Resolution No. 17491 approving Council Policy No. 570-03, Sewage Pump station Financing policy; and WHEREAS, the Council Policy provides that all existing Sewer Service Rate Areas, which provide for the financing of maintenance and operation (MjO) costs of public sewage pump stations by property owners, be modified as of July 1, 1994; and WHEREAS, Ordinance Nos. 2181, 2286, 2477 and Resolution Nos. 6833 and 8028 must be repealed and Ordinance No. 2461, all of which established special Sewer Service Rate Areas must be amended to comply with the Council Policy; and WHEREAS, the Master Fee Schedule needs to be updated to reflect the provisions stated in the Council Policy. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby amend the Master Fee Schedule to delete Chapter XII, Engineering-Sewer, section D, Pump stations. BE IT FURTHER RESOLVED that Resolutions Nos. 6833 and 8028 are hereby repealed to discontinue the billing of sewage pump station surcharges. Presented by Approved as to form by /7 / ; IZv/~ ~ c~tc/fJ){{ ¡ . Bruce M. Boogaard, C1ty Attorney John P. Lippitt, Director of Public Works C:\rs\sewpUMp.Mfs 78-/ COUNCIL AGENDA STATEMENT r Item ITEM TITLE: ~ Meeting Date 7/19/94 Resolution) '7. ~ 'proving agreements between the City of Chula Vista and various Community Promotions groups for expenditure of City funds Agreement with Chula Vista Jaycees Agreement with Gretchen Evans, Library Chamber Concerts Agreement with U. N. Day Committee Agreement with Boniti'~~st Committee SUBMITTED BY: City Manage:J4 bð~1 4/5ths Vote: Yes No¿ The 1994-95 budget includes funding of various Community Promotions organ izat ions. The Counc i 1 cons i dered requests from these groups during the budget session on June 1, 1994, and approved funding as follows: · Chula Vista Jaycees Gretchen Evans Library Concerts U. N. Day Committee Bon itafest $9,880 $1,650 $ 380 $2,490 · · · Agreements between the City and each of these agencies are attached, which set out the terms and conditions for receiving City funding. RECOMMENDATION: Adopt resolution approving agreements. BOARDS/COMMISSIONS RECOMMENDATION; N.A. DISCUSSION: The attached agreements have varied 1 itt le over the years, other than slight changes in the funding amounts. The Jaycees and U. N. Day Committee have received the same level of funding since 1989-90 ($9,880 and $380 respectively), the Library Concert Series is recommended for the same amount of funding as in 1993-94, and the Bonitafest Committee is recommended to receive an $80 increase, which represents actual cost experience based on 1993-94. FISCAL IMPACT: The 1994-95 adopted budget includes funding for these activities. ?y,./ RESOLUTION NO. / 'l,5Í,9 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING AGREEMENTS BETWEEN THE CITY OF CHULA VISTA AND VARIOUS COMMUNITY PROMOTIONS GROUPS FOR EXPENDITURE OF CITY FUNDS WHEREAS, the 1994-95 budget includes funding of various Community Promotions organizations; and WHEREAS, groups during the following amounts: the Council considered requests from these budget sessions and approved funding in the · · · · Chula vista Jaycees Gretchen Evans Library Concerts U. N. Day Committee Bonitafest $9,880 $1,650 $ 380 $2,490 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista does hereby approve agreements between the City of Chula vista and Chula vista Jaycees, Gretchen Evans Library Concerts, U. N. Day Committee and Bonitafest Committee, copies of which are on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the Mayor of the City of Chula vista is hereby authorized and directed to execute said Agreements for and on behalf of the city of Chula vista. Presented by Approved as to form by John D. Goss, city Manager c: \rS\COllprOIlS 8"- ~ AGREEMENT SETTING OUT THE TERMS AND OBLIGATIONS OF GRETCHEN EVANS LIBRARY CONCERTS IN REGARD TO THE EXPENDITURE OF CITY FUNDS APPROPRIATED THIS AGREEMENT, made and entered into the 5r.u,~+t. day of ~~, 1994, by and between THE CITY OF CHULA VISTA, a municipal orporation, hereinafter referred to as "City" and GRETCHEN EVANS LIBRARY CONCERTS, hereinafter referred to as "Gretchen Evans"; W1.TNES§.ETHJ.. WHEREAS, the City Council of the City of Chula Vista has determined that the function of the Gretchen Evans Library Concerts serves a valid public purpose, and WHEREAS, the City Council of the City of Chula Vista desires to encourage the beneficial aims of the Gretchen Evans Library Concerts through appropriation of reasonable amounts of City funds, and WHEREAS, the City Council has established a policy for consideration of requests for funding by private organizations and individuals, and WHEREAS, such policy stipulates that no expenditure may be made of any appropriation awarded said organization unless an agreement has been reached between the parties setting out the terms and conditions for the expenditure of such funds. NOW, THEREFORE, IT IS MUTUALLY AGREED by and between the parties hereto as follows: 1. Gretchen Evans agrees to provide a total of six library concerts, three in the fall and three in the spring. Of these six concerts, the City will appropriate and expend $1,650.00 for same during the 1994-95 fiscal year. 2. Gretchen Evans agrees to expend City appropriated funds to meet bona fide obligations incurred in performing services related to the library concerts. 3. Gretchen Evans agrees to submit, on a yearly basis, a complete report of all expenditures and shall specifically list the purposes furthered by the City appropriated funds of $1,650 for fiscal year 1994-95. 4. That the Council of the City of Chula Vista, at its discretion, may require Gretchen Evans to provide or allow the City to undertake a complete financial audit of her records. 1 g--;.J 5. That the term of this agreement shall be for a period of one (1) year, from 7-1-94 through 6-30-95, unless further modified to include other permitted expenditures of funds that are appropriated by the City Council. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first hereinabove set forth. THE CITY OF CHULA VISTA CONCERTS GRETCHEN EVANS LIBRARY Mayor of the City of Chula Vista Ad;;¡~ ~ Gretchen Evans ATTEST City Clerk Approved as to form by ~~dd~ City Attorney C:\ag\GrtEvans 2 8',1 AGREEMENT SETTING OUT THE TERMS AND OBLIGATIONS OF THE UNITED NATIONS DAY COMMITTEE IN REGARD TO THE EXPENDITURE OF CITY FUNDS APPROPRIATED THIS AGREEMENT, made and entered into this day of , 1994 by and between the CITY OF CHULA VISTA, a municipal corporation, hereinafter referred to as "City", and the UNITED NATIONS DAY COMMITTEE, hereinafter referred to as "Conunittee"¡ Wl.TNES.§.ETH..L WHEREAS, the City Council of the City of Chula Vista has determined that the designation of a United Nations Day Committee serves a valid public purpose, and WHEREAS, the City Council of the City of Chula Vista desires to encourage the beneficial aims of the United Nations Day Committee through appropriation of reasonable amounts of City funds, and WHEREAS, the City Council has established a policy for consideration of requests for funding by private organizations and individuals, and WHEREAS, such policy stipulates that no expenditure may be made out of any appropriation awarded said organizations unless an agreement has been reached between the parties setting out the terms and conditions for the expenditure of such funds. NOW, THEREFORE, IT IS MUTUALLY AGREED by and between the parties hereto as follows: 1. The organization known as the United Nations Day Committee agrees to promote friendly relations between all members of different nations who come to Chula Vista. 2. That the United Nations Day Committee agrees to expend City appropriated funds to meet bona fide obligations incurred in performing services related to the United Nations Day Program, not to exceed $380 for fiscal year 94-95. 3. The Committee agrees to submit, on a yearly basis, a complete report of all expenditures and shall specifically list the purposes furthered by the City appropriated funds of $380 for fiscal year 94-95. 4. That the Council of the City of Chula Vista at its discretion may require the United Nations Day Committee to 1 ~'5 provide or allow the City to undertake a complete financial audit of their records. 5. That the term of this agreement shall be for a period of one (1) year, from 7-1-94 through 6-30-95, unless further modified to include other permitted expenditures of funds that are appropriated by the City Council. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first hereinabove set forth. THE CITY OF CHULA VISTA COMMITTEE UNITED NATIONS ~~ Kitty Raso Mayor of the City of Chula Vista ATTEST City Clerk Approved as to form by Cit;l~y).1 dd~ C:\ag\UNdayCom 2 8'" ¿, AGREEMENT SETTING OUT THE TERMS AND OBLIGATIONS OF THE BONITAFEST COMMITTEE IN REGARD TO THE EXPENDITURE OF CITY FUNDS APPROPRIATED THIS AGREEMENT, made and entered into this day of , 1994 by and between the CITY OF CHULA VISTA, a municipal corporation, hereinafter referred to as "City", and the BONITAFEST COMMITTEE, hereinafter referred to as "Bonitafest"¡ W 1. T N E SSE T H .!. WHEREAS, the City Council of the City of Chula Vista has determined that support of the Bonitafest serves a valid public purpose, and WHEREAS, the City Council of the City of Chula Vista desires to encourage the beneficial aims of the Bonitafest Committee through appropriation of reasonable amounts of City funds, and WHEREAS, the City Council has established a policy for consideration of requests for funding by private organizations and individuals, and WHEREAS, such policy stipulates that no expenditure may be made out of any appropriation awarded said organizations unless an agreement has been reached between the parties setting out the terms and conditions for the expenditure of such funds. NOW, THEREFORE, IT IS MUTUALLY AGREED by and between the parties hereto as follows: 1. The Bonitafest Committee will expend City appropriated funds not to exceed $2,490 to defray expenses for the provision of police and transit and the City will waive the special event business license tax for this event, 2. The Committee agrees to submit, on a yearly basis, a complete report of all expenditures and shall specifically list the purposes furthered by the City appropriated funds of $2,490 for fiscal year 94-95. 3. That the Council of the City of Chula Vista at its discretion may require the Bonitafest Committee to provide or allow the City to undertake a complete financial audit of their records. 4. That the term of this agreement shall be for a period of one (1) year, from 7-1-94 through 6-30-95, unless further modified to include other permitted expenditures of funds that are appropriated by the City Council. 1 8" ì IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first hereinabove set forth. THE CITY OF CHULA VISTA BONITAFEST COMMITTEE Mayor of the City of Chula Vista .0J Wr L-l. Chairman ATTEST City Clerk Approved as to form by ~ kt dd~ City Attorney C.\AG\BONTAFST 2 8" .. ~ AGREEMENT SETTING OUT THE TERMS AND OBLIGATIONS OF THE CHULA VISTA JAYCEES IN REGARD TO THE EXPENDITURE OF CITY FUNDS APPROPRIATED THIS AGREEMENT, made and entered into the ,¿-if, day of _ ,]"'..: '- '/ , 1994 by and between the CITY OF CHULA VISTA, a municipal corporation, hereinafter referred to as "City", and the CHULA VISTA JAYCEES, hereinafter referred to as "Jaycees"; Wl.TNEââETH~ WHEREAS, the City Council of the City of Chula Vista has determined that the function of the Chula Vista Jaycees serves a valid public purpose, and WHEREAS, the City Council of the City of Chula Vista desires to encourage the beneficial aims of the Chula Vista Jaycees through appropriation of reasonable amounts of City funds, and WHEREAS, the City Council has established a policy for consideration of requests for funding by private organizations and individuals, and WHEREAS, such policy stipulates that no expenditure may be made out of any appropriation awarded said organization unless an agreement has been reached between the parties setting out the terms and conditions for the expenditure of such funds. NOW, THEREFORE, IT IS MUTUALLY AGREED by and between the parties hereto as follows: 1. The organization known as the Chula Vista Jaycees agrees to participate in the Fiesta de la Luna and related activities, including the selection of "Miss Chula Vista". 2. The Chula Vista Jaycees agrees to expend City appropriated funds to meet bona fide obligations incurred in performing services related to participation in the Fiesta de la Luna, in an amount not to exceed $7,600, and selection of "Miss Chula Vista", in an amount not to exceed $2,280, in fiscal year 94-95. 3. The Jaycees agree to submit, on a yearly basis, a complete report of all expenditures and shall specifically list the purposes furthered by the City appropriated funds of $9,880 for fiscal year 94-95. 4. That the Council of the City of Chula Vista at its discretion may require the Chula Vista Jaycees to provide or allow the City to undertake a complete financial audit of their 1 8", / records. 5. That the term of this agreement shall be for a period of one (1) year, from 7-1-94 through 6-30-95, unless further modified to include other permitted expenditures of funds that are appropriated by the City Council. IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed the day and year first hereinabove set forth. THE CITY OF CHULA VISTA CHULA VISTA JAYCEES t11U: ~ Parade Chairman Mayor of the City of Chula Vista ATTEST City Clerk Approved as to form by fÎ4rL;/;cl C~ty At orney CI\ag\jaycees 2 8',/tJ COUNCIL AGENDA STATEMENT Item Number 'J Meeting Date 7-19-94 ITEM TITLE: /75?ð Resolution Approving a Three party Agreement Between the City of Chula Vista, Otay Vista Asssociates, and Remy & Thomas and Authorizing the Mayor to Execute Said Agreement SUBMI'lT.ED BY: Special Planning Proj(1s Manager, Otay Ranch Project_ REVIEWED BY: City Manage~ ~~ì 4/5ths Vote: Yes_No.1O The City Council, on January 25, 1994, authorized City staff to begin the process of amending the current sphere boundaries and implementing the General Plan for the Otay Ranch Project. A key element of those studies is the preparation of an Environmental Impact Report (EIR) and the Sectional Planning Area (SPA) Plans and supporting studies required by the General Development Plan. To maintain continuity it is recommended that the firm of Remy & Thomas be retained to review environmental documents for the Sphere of Influence study; the SPA Plan; provide processing guidance of all supporting environmental documents to assure compliance with CEQA and avoid litigation predicated upon alleged deficiencies in environmental documents or improper processing of the documents. RECOMMENDATION: Adopt a resolution approving a Three Party Agreement between the City of Chula Vista, Otay Vista Associates, and Remy & Thomas to review environmental documents and provide legal advice to City staff and Authorizing the Mayor to Execute and sign said Agreement. BOARD/COMMISSION RECOMMENDATION: Not applicable. DISCUSSION: The City desires to employ a law firm with expertise and experience in reviewing environmental documents for compliance with the State and City guidelines and procedures of CEQA in reference to the Otay Ranch Project Sphere of Influence Study and the preparation of a new Environmental Impact Report for the study. Remy & Thomas has provided legal support on this project since its very beginning in November 1991 in such areas as Environment Impact Report and General Development Plan preparation and review. On January 18, 1994, the City Council retained their services to represent the City in litigation filed against the Otay Ranch Project. Remy & Thomas offers special CEQA expertise that is not available in-house. R&T113A.doc 7/1/94 9'/ 1 Page 2, Item No, <¡ Meeting Date 7/19/94 On May 9, 1994, a revised deposit agreement was signed by Otay Vista Associates for a payment schedule. Pursuant to the agreement, Baldwin Vista, has made all the required payments on time. The agreement specifies that all FY93-94 and FY94-95 expenditures are to be current prior to the 25th of the succeeding month. The agreement stipulates that late payments accrue interest at the rate of 4.384 percent per annum. In addition, the City of Chula Vista has the option to stop processing all Baldwin discretionary applications if the deposits are not received prior to the 25th of each month. In a separate agreement, all accrued charges related to the litigation shall be paid prior to going to trial. Remy & Thomas shall perform the legal environmental services on an as needed basis for a not to exceed figure of $25,000.00. The current work program anticipates completion of the Sphere Study and the report being filed with LAFCO in November 1994. Remy & Thomas was paid: in 1990 $7,380.85; 1991 $39,462.17; 1992 $42,146.34; and 1993 $71,169.65. The contract, approved by Council on March 29, 1994, to represent the City in defense of the lawsuit is for $225,000.00 in legal servIces. FISCAL IMPACT: There will be no fiscal impact to the City of Chula Vista. Otay Vista Associates will be funding this scope-of-work ($25,000.00) through their agreement and monthly deposit to the Otay Ranch trust account. Attachment R&T113A.doc 7/1/94 9" ,2. 2 RESOLUTION NO. 17S'7ð RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A THREE PARTY AGREEMENT BETWEEN THE CITY OF CHULA VISTA AND REMY & THOMAS FOR LEGAL CONSULTING SERVICES TO REVIEW ENVIRONMENTAL DOCUMENTS FOR THE OTAY RANCH PROJECT AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT WHEREAS, the City Council, on January 25, 1994, authorized City staff to begin the process of amending the current sphere boundaries and implementing the General Plan for the Otay Ranch Project; and WHEREAS, to maintain continuity, it is recommended that Remy & Thomas be retained to review environmental documents for the Sphere of Influence; the SPA Plan; provide processing guidance of all supporting environmental documents to assure compliance with CEQA; and avoid litigation predicated upon alleged deficiencies in environmental documents or improper processing of the documents; and WHEREAS, there will be no fiscal impact to the City of Chula vista because Otay vista Associates will be funding the scope-of-work ($25,000.00) through their monthly deposit to the Otay Ranch trust account. NOW, THEREFORE, BE IT RESOLVED that the city Council of the City of Chula vista does hereby find, pursuant to Chula vista Municipal Code section 2.56.070 that competitive bidding is impractical, and waive the normal consultant selection process because of Remy & Thomas' historic significant time and effort advising on the preparation of the Environmental Impact Report on the General Development Plan, statewide recognized CEQA expertise, retention as counsel on related litigation, and reasonable fees. BE IT FURTHER RESOLVED that the city Council of the city of Chula vista does hereby approve a Three Party Agreement between the city of Chula vista and Remy & Thomas for legal consulting services to review environmental documents for the Otay Ranch Project, a copy of which is on file in the office of the City Clerk as Document No. (to be completed in the final document by the Clerk) . BE IT FURTHER RESOLVED that the Mayor of the city of Chula vista is hereby authorized and directed to execute said agreement for and on behalf of the City of Chula vista. Presented by Approved as to form by George Krempl, Deputy City Manager C:\RS\Remy&Thomas city 9-3/q-f Three Party Agreement Between City of Chula Vista, Remy & Thomas and Otay Vista Associates For Legal Consulting Services to be Rendered with Regard to the Otay Ranch 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 .Exhibit 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. .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. Applicant desires to develop the Property with the Project described on Exhibit A, Paragraph 2, and in that regard, will soon make an application ("Application") with the City for approval of the plan, map, zone, or other permits ("Entitlements") described on Exhibit A, Paragraph 3. .3. In order for the City to process the future Application of Applicant, Work of the general nature and type described in Exhibit A, Paragraph 4, ("Work") will need to be completed. .4. City does not presently have the "in-house" staff or resources to process the application within the time frame requested for review by the Applicant. .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. lW'CONtltDOC 1ulyl.1994 9~~ ~Pu1y- ....1 3. Agreement. NOW, THEREFORE, IT IS MUTUALLY AGREED TO AND BETWEEN THE CITY, CONSULTANT, AND APPLICANT AS FOLLOWS: .1. Emplovment of Consultant bv Applicant. 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 ü 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. 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 ancVor reimbursement, ü 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 specüied 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. .2. Compensation 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 Cadjacent 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, ü checked, and upon receipt of such payment by the City, City R.tTCONJ'R.DOC Ju!yl,l994 9-¿, """-- .... 2 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 liable for the compensation unless it receives same from Applicant. Applicant shall not make any payments of compensation or otherwise directly to the Consultant. .1. Additional Work. If the Applicant, with the concurrence of City, determines that additional services ("Additional Services") 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 otherwise agreed upon in writing for said Additional Work between the parties. .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. .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. Securitv for Pavment of ComDensation bv ADDlicant. .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: u:rcoNTIUXJC 1uJyl,l994 9-7 """-- ....' .1 Other Terms of Deposit Trust. .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. .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 dep(\!';it 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. 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. .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. .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. .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. üTCONl1lDOC 1uJyl,l994 ~rr Thno__ ..... 4. Non-Service Related Duties of Consultant. .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 categories, and to the limits specified, policies of which are issued by Insurance Companies that have a Best's Rating of "A, Class V" or better, or shall meet with the approval of the City: .1. Statutory Worker's Compensation Insurance and Employer's Liability Insurance coverage in the amount set forth in the attached Exhibit A, Paragraph 10. .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"). .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. .2. Proof of Insurance Coveralre. .1. Certificates of Insurance. Consultant shall demonstrate proof of coverage herein required, prior to the commencement of services required under this Agreement, by delivery of Certificates of Insurance demonstrating same, and further indicating that the policies may not be canceled without at least thirty (30) days written notice to the Additional Insured. .2. Policy Endorsements Required. In order to demonstrate the Additional Insured Coverage, Primary Coverage and Cross-liability Coverage required under Consultant's Commercial General Liability Insurance Policy, Consultant shall deliver a policy endorsement to the City and Applicant demonstrating same. RATCONI'R.DOC JuJyl,1994 7-9 Thno__ .....' .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. Communication to Applicant. 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 Applicant. .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. .2. Propertv 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 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. .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. RATCONTR..DOC 1u!y 1,1994 ?,/¡) 1fuM__ ....' 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 .1. Consultant is Desimated 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. .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 know Consultant has a financial interest other than the compensation promised by this Agreement. .3. Search to Determine Economic Interests. Regardless of whether Consultant is designated as an FPPC Filer, Consultant warrants and represents that Consultant has diligently conducted a search and inventory of Consultant's economic interests, as the term is used in the regulations promulgated by the Fair Political Practices Commission, and has determined that Consultant does not, to the best of Consultant's knowledge, have an economic interest which would conflict with Consultant's duties under this agreement. .4. Promise Not to Acauire ConflictinŒ 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. UTCONTR.DOC Ju1yl,l994 9-// 1Itno__ ....' .5. Dutv to Advise of Conflictine- 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. .6. Specific Warranties Ae-ainst 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 ("Prohibited Interest"). 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. 8. 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. UTCQNl'R.DOC Jalyl.1994 q"l:J- Thœo""'_ ..... 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 Aln"eement. This Agreement, wgether 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. Governinl!' LawNenue. This Agreement shall be governed by and construed in accordance with the laws of the State of California. Any action arising under or relating to this Agreement shall be brought only in the federal or state courts located in San Diego County, State of California, and if applicable, the City of Chula Vista, or as close thereto as possible. Venue for this Agreement, and performance 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. Counternarts. 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. RA.TCONTRDOC 1ulyl.1994 9'15 TluwPwly_ Ptpll 13.9. Severabilitv. 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. Headinl!'s. 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 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. R.t.TCONTR.DOC 1uJy 1,1994 9-/(, """'-- ...." 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: Tim Nader Mayor Attest: l3everly Authelet City Clerk Approved as to Form: ß!h :L( Þ I3ruce M. l300gaard City Attorney Dated: Consultant: Remy & Thomas by: ~¿"/ Ú .J4øn~ Tina A. Thomas' Dated: Applicant: Otay Vista Associates by. -..rcoNTR.DOC JuJy 1. 1994 9-1') 11uMPuty _ Pap 13 --~. ._..._.._~--- -------.--..-.-----.....-.......".-....- - """ ....--.- -,.._-- Exhibit A Reference Date of Agreement:Julv 19, 1994 Effective Date of Agreement: Julv 19. 1994 City of Chula Vista, 276 Fourth Avenue, Chula Vista, CA 91910 Consultant: Remy and Thomas, Inc., Attorneys at Law Business Form of Consultant: ( ) Sole Proprietorship ( ) Partnership (X ) Corporation Address: 629 J Street - 4th Floor Sacramento, CA 95814 Applicant: Otay Vista Associates, Business Form of Applicant: ( ) Sole Proprietorship ( ) Partnership (X) Corporation Address: 11975 EI Camino Real, Suite 200 San Diego, CA 92130 1. Property (Commonly known address or General Description): The approximately 23,000 acre Otay Ranch property is situated on unincorporated land comprising seven separate parcels in southwestern San Diego County, 3.5 miles east of downtown Chula Vista and 13 miles southeast of downtown San Diego. Otay Ranch lies between the eastern edge of the City of Chula Vista and the western edge of the unincorporated community of Dulzura. The combined properties span a distance of approximately 12 miles from east to west and 8.5 miles from north to south. Otay Ranch is grouped geographically to form three, distinct parcels known as the Otay Valley Parcel, San Ysidro Mountains Parcel and the Proctor Valley Parcel. R&T·AJ)OC July I, 1994 Bmibit A .....' 9--/3' 2. Project Description ("Project"): The proposed project is a City of Chula Vista initiated proposal to amend its Sphere of Influence boundaries to incorporate selected portions of the approved Otay Ranch GDPjSRP, as well as a limited number of additional parcels outside the Otay Ranch ownership. As part of the Sphere of Influence Update Study, the City will undertake general housekeeping efforts to ensure that the Sphere and General Plan boundaries are coterminous. General Plan Amendments will be processed for parcels within the Resort Parcel, including approximately five parcels associated with the Lower Otay Reservoir totaling 22 acres and a 20-acre parcel known as the Satterla Property. Future discretionary actions anticipated include applications to LAFCO for annexations, detachments, district formations, and dissolutions within the Sphere Area, which will be analyzed in a separate, future environmental document(s). 3. Discretionary Approvals applied for include: Amendments to the Chula Vista Sphere of Influence; Amendments to the Chula Vista General Plan; Future annexation, detachment, district formation and dissolutions; and Sectional Planning Area (SPA) Plan. 4. General Nature of Consulting Services ("Services--General"): Legal Consultation on SPA Plans and Sphere of Influence Update Study and associated environmental documents and to provide City Staff with guidance of all documents to assure compliance with California State law including CEQA calculated to avoid litigation predicated on alleged deficiencies in the Environmental documents or their processing. 5. Detailed Scope of Work ("Detailed Services"): Provide legal consultation to the City of Chula Vista on the preparation and processing of Sectional Planning Area (SPA)Plans, Sphere of Influence Update Study and all supporting environmental documents to assure compliance with CEQA and other State laws calculated to avoid litigation predicated on alleged deficiencies in the environmental documents or improper processing of the documents. MT-A.DOC July I, 1994 &dúbit A Pqo 2 9 ''/ " 6. Schedule, Milestone, Time-Limitations within which to Perform Services. Date for Commencement of Consultant Services: (X) Same as Effective Date of Agreement 7. Documents to be provided by Applicant to Consultant: ( ) site plans () grading plans ( ) architectural elevations ( ) project description. (X) other: SPA Plan, Sphere of Influence Study, EIR's 8. Contract Administrators. City: Gerald J. Jamriska, A.LC.P. Special Planning Projects Manager Applicant: Kim J. Kilkenny, Vice-President Consultant: Tina Thomas, Attorney 9. Statement of Economic Interests, Consultant Reporting Categories, per Conflict of Interest Code: (X) Not Applicable. ( ) Category No. 1. ( ) Category No.2. ( ) Category No.3. Not an FPPC Filer. Investments and sources of income. Interests in real property. 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. () 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. .......A.DQC July I, 1994 E:IdrlbitA ..... 3 9.... ;;"0 () 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). ( ) Errors and Omissions insurance: $250,000 (not included in Commercial General Liability coverage). 1IaT-A.OOC July 1, 1994 BDûbit A ..... . 9--;"1 Exhibit B Additional Recitals WHEREAS, the Applicant has deposited an initial sum for the processing of Sectional Planning Area Amendments, Sphere of Influence Amendments, requests for proposals, draft and final EIR's, and all other necessary environmental documents, and WHEREAS, the City of Chula Vista is undertaking an update to its Sphere of Influence and has determined that the project meets the California Environmental Quality Act (CEQA) definition of a project pursuant to Section 21065 of the Public Resources Code; and WHEREAS, in order to comply with CEQA, an Environmental Impact Report will be required to be prepared to analyze the projects potential impact to the environment; and, WHEREAS, the majority of the project area encompasses the Otay Ranch General Development Plan,lSubregional Plan area owned by Otay Vista Associates, L.P. (Applicant which will be the primary beneficiary of the City's Study); and, WHEREAS, the City does not presently have the "in-house" expertise in the specialized field of environmental law; 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 consulting services. ß&T-B.IXXJ July 1, 1994 lÞ:bibitB .....' C? .. .2..;" _ _'.n_____..,_____ ._.__.____~..._"_.______.._._...._.__..__,.__~ Exhibit C Comnensation Schedule and Denosit: Terms and Conditions. ( ) Single Fixed Fee Arrangement For performance of all of the General and Detailed Services of Consultant as herein required, Applicant shall pay a single fixed fee in the amounts and at the times or milestones set forth below: ( ) Single Fixed Fee Amount: $ Milestone or Event Amount or Percent of Fixed Fee ( ) Phased Fixed Fee Arrangement. For the performance of each phase or portion of the General and Detailed Services of Consultant as are separately identified in Exhibit C, under the category labeled "Phased Fixed Fee Arrangement", Applicant shall pay the fixed fee associated with each phase of Services, in the amounts and at the times or milestones set forth hereinbelow ("Phase Fixed Fee Arrangement"). Consultant shall not commence Services under any Phase, and shall not be entitled to the compensation for a Phase, unless Applicant shall have issued a notice to proceed to Consultant as to said Phase. (X ) Time and Materials For performance of the General and Detailed Services of Consultant as herein required, 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 according to the following terms and conditions: ( X) Not-to-Exceed Limitation on Time and Materials Arrangement Notwithstanding the expenditure by Consultant of time and materials in excess of said Maximum Compensation amount, Consultant agrees that Consultant will perform all of the General and Detailed Services herein required of Consultant for $ 25.000.00 including all Materials, and other "reimbursables" ("Maximum Compensation"). rti-e..doe July 1,1994 Bmibit C p... 1 9".2.) ( ) Limitation without Further Authorization on Time and Materials Arrangement At such time as Consultant shall have incurred time and materials equal to $25.000.00 ("Authorization Limit"), Consultant shall not be entitled to any additional compensation without further authorization issued in writing and approved by the City Council. Nothing herein shall preclude Consultant from providing additional Services at Consultant's own cost and expense. Rate Schedule Category of Employee of Consultant Name Hourly Rate Attorney Attorney Attorney Attorney Attorney Attorney Attorney Land Use Analyst Land Use Analyst Law ClerwParalegal Michael H. Remy Tina A. Thomas J. William Yeates James G. Moose Whitman F. Manley Matthew R. Campbell John H. Mattox Georganna Foondos Kelley Taber $195.00 $195.00 $195.00 $195.00 $150.00 $150.00 $150.00 $ 75.00 $ 75.00 $ 50.00 ( ) Hourly rates may increase by 6% for services rendered after January, 1995, if delay in providing services is caused by City or Applicant. Materials Separately Paid For by Applicant Cost or Rate ( X ) Materials Reports Copies (X) Travel ( X ) Printing ( X ) Postage ( X ) Delivery ( X ) Long Distance Telephone Charges ( X ) Other Actual Identifiable Direct Costs Actual Actual Actual Actual Actual Actual Actual -..."'" July 1, 1994 Bxhibit C ..... 2 e¡. .2.1 Deposit ( ) Deposit Amount: $ ( ) Use of Deposit to Pay Consultant. Notwithstanding the sole duty and liability of Applicant to pay Consultant, if this paragraph is "checked", upon City's receipt of billing by Consultant, and determination 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 from 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 determination of propriety. ( ) Use of Deposit as Security Only; Applicant to Make Billing Payments. Upon determination 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. ( X) Bill Processing: A. Consultant's Billing to be submitted for the following period of time: ( X ) Monthly ( ) Quarterly ( ) Other: B. Day of the Period for submission of Consultant's Billing: ( X ) First of the Month ( ) 15th Day of each Month ( ) End of the Month ( ) Other: C. City's Account Number: 241-5201 ........... July I, 1994 "","",to Pop' 9 ~ .2~ COUNCIL AGENDA STATEMENT Item /1/ Meeting Date 7/19/94 ITEM TITLE: Resolution /7.5'7/ Approving Third Amendment to Agreement with Remy and Thomas for Litigation Representation Services ~sistant City Attorney SUBMITTED BY: REVIEWED BY: Bruce M. Boogaard, City Rudolf () b AttorneytQM:) 4/sths Vote: Yes No...lL When the City of Chula vista and County of San Diego approved the final version of the Otay Ranch Project, part of the approval was an indemnification agreement by Otay vista Associates (successor to Baldwin vista Associates), indemnifying the City and the County in the event of an attack on the project approval. Chaparral Greens thereafter sued, alleging inadequacies in the final program EIR and/or violations of CEQA. Council, by Resolution No. 17547 on January 4, 1994, ratified a Three-Party Agreement whereby Remy and Thomas (Tina Thomas, Esq.) would represent the City pursuant to that indemnification agreement, at otay vista's expense. On March 29, 1994 the Council approved the First Amendment to Agreement, increasing the maximum compensation from $75,000 to $160,000. On May 10, 1994 the Council approved the Second Amendment to Agreement, increasing the maximum compensation from $160,000 to $295,000. Approval of the resolution and agreement will authorize Tina Thomas of Remy and Thomas to continue to represent the city in that litigation at otay vista's (Baldwin's) expense, and further increase the maximum compensation from $295,000 to $395,000. The matter is now set for trial on September 19, 1994. RECOMMENDATION: Approve the attached resolution approving the Third Amendment to the City's Agreement with Remy and Thomas for legal representation in the Chaparral Greens litigation. BOARDS/COMMISSIONS RECOMMENDATION: N/A. DISCUSSION: Approval of the resolution will increase the maximum compensation set forth in the Agreement from $295,000 to $395,000. It will allow continued representation of the City by Tina Thomas of Remy and Thomas, the attorney who has provided advice with regard to compliance with CEQA and the adequacy of the EIR throughout the entire planning process. Both the City and the county are named as Real Parties in Interest in the litigation, and the defendant is the Baldwin Company, through its corporate entity, otay vista Associates. ¡¿'... / FISCAL IMPACT: $100,000, the difference between the old authorization ($295,000) and the amount herein approved ($395,000), which by the agreement is to be paid by the Baldwin Company and the establishment of a deposit account. The City has no funds exposed for payment of attorney's fees in this matter. Our duty to pay the attorney is dependent on collection of funds from Baldwin. M:\Home\Attorney\Chappar13 /tJ.,.2. RESOLUTION NO. ) 7..57 J RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THIRD AMENDMENT TO AGREEMENT WITH REMY AND THOMAS FOR LITIGATION REPRESENTATION SERVICES IN CONNECTION WITH THE CHAPARRAL GREENS LAWSUIT, AND AUTHORIZING MAYOR TO EXECUTE SAME WHEREAS, the city, by Resolution No. 17347, on January 4, 1994, approved an Agreement with Remy and Thomas for Litigation Representation services in connection with the Chaparral Greens lawsuit; and, WHEREAS, the City of Chula vista, by Resolution No. 17426 on March 29, 1994, approved a First Amendment to Agreement to provide for continued litigation representation services in connection with the Chaparral Greens lawsuit, and an increase in the maximum compensation from $75,000 to $160,000; and WHEREAS, the city of Chula Vista, by Resolution No. 17481 on May 10, 1994, approved a Second Amendment to Agreement to provide for continued litigation representation services in connection with the Chaparral Greens lawsuit, and an increase in the maximum compensation from $160,000 to $295,000; and WHEREAS, it is necessary to amend said Agreement to increase the total amount of Agreement from $295,000 to $395,000; and, WHEREAS, Otay vista Associates is required by an Indemnity Agreement to defend, indemnify and hold harmless the City regarding any litigation arising from City's approval of the Otay Ranch Project, including payment for legal counsel to represent City in such litigation. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista does hereby approve the Third Amendment to Agreement with Remy and Thomas for Litigation Representation Services in connection with the Chaparral Greens lawsuit, a copy of which is on file in the office of the city Clerk as Document No. (to be completed by the City Clerk in the final document) . THER RESOLVED that the Mayor of the City of y authorized and directed to execute said Third on beha f the city of Chula vista. form by {M:\Home\Attorney\Remy.Res3) lð-J _..__.._--,,_._--_.~--, ~ ~ ~ ,; rt rt o " o . ~ .- ! g o-J v n _-0> ~ 5 0 HI 0 H '" S ~ ~ HI'" ª ~ '" o .. · ~ ~ OJ ~. .., 0 .. '" ......, 0 -II> '" ~ 0 >- w "'....0 >'3 '" . ..... ~ H '" 0.... g - o",ø. 0 0- 0 tr 0 '< H_-II> ~ ~ ~ ~ ~ '" l¡ '" ~""'" ~ l'> <........ ~ '< ~ 0 ~ ~ 0 ~ 0 ~ ~. 0 !-'-['" .... :>' ..... ~ ... 0 0 « n ro '" -..J .. l'> ~ '" ~ '" '" '< ~ ro ro .... rt -..J -0> - I W .. '" WOl '" '" W 01... Z . . · . · 0 w CD '" .... 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OlOlOoÞo CI).ÞoIÞo.......... t':I 10 C oÞo -J ...... .... 10 ...... 10 oÞo - THIRD AMENDMENT TO AGREEMENT WITH REMY AND THOMAS FOR LITIGATION REPRESENTATION SERVICES WHEREAS, the City of Chula Vista, by Resolution 17347 on January 4, 1994, approved an Agreement to provide for litigation representation services in connection with the Chaparral Greens lawsuit; and WHEREAS, the city of Chula Vista, by Resolution 17426 on March 29, 1994, approved a First Amendment to Agreement to provide for continued litigation representation services in connection with the Chaparral Greens lawsuit, and an increase in the maximum compensation from $75,000 to $160,000; and WHEREAS, the city of Chula Vista, by Resolution 17481 on May 10, 1994, approved a Second Amendment to Agreement to provide for continued litigation representation services in connection with the Chaparral Greens lawsuit, and an increase in the maximum compensation from $160,000 to $295,000; and WHEREAS, since that time, it has become apparent that litigation expenses will be higher than originally anticipated; and WHEREAS, Otay vista Associates (Baldwin) is responsible for and agrees to pay all costs involved in defending the litigation as a result of the Indemnification Agreement approved by the Council as part of the final approval of the otay Ranch Project. NOW, THEREFORE, the parties hereto agree as follows: 1. That Paragraph 2.b.iv be amended to change the amount of $295,000 to $395,000 to read as follows: "iv. Consultant shall not incur costs or billings which, in total, exceed Three Hundred Ninety-Five Thousand Dollars ($395,000.00) without further written approval of the City." 2. All other terms and conditions not modified by this Second Amendment to Agreement shall remain in full force and effect. .:\Ho.e\Attorney\REMT3RDA /ð-,Ç IN WITNESS WHEREOF, City, executed this Second Amendment to July, 1994. CITY OF CHULA VISTA Tim Nader, Mayor Attest: c~t~e k AP7 as .:\Ho.e\Attorney\REUT3RDA J~"~ Consultant and Developer have Agreement this day of OTAY VISTA ASSOCIATES REMY AND THOMAS Tina A. Thomas COUNCIL AGENDA STATEMENT Item I \ Meeting Date ""I/f'rÁ1 , VIA: Resolution lìSf2.exercising the option to extend tenns of Chamber of Commerce agreement to provide general information services for two years and amending contract. Public Information coordinat~ Deputy City Manager ~/r1i l~ .~ REVIEWED BY: City Manager~ ~ ~ (4/5th Vote: Yes _ No ) In 1987, the City Council approved a one-year agreement with the Chula Vista Chamber of Commerce for general public information and referral services. In 1988, the City Council approved another agreement for a one-year term with options for the City to extend it for two additional one-year terms. By exercising these options, the City extended this agreement through FY 1990-91. A new contract with an initial term of three years through FY 1993-94 was approved by the City Council in September 1991. That contract included an option for the City to extend the agreement for an additional two-year term. ITEM TITLE: SUBMITTED BY: RECOMMENDATION: That the Council adopt the resolution exercising the option to extend term of the Chamber of Commerce agreement through FY 1995-96, at a cost of $30,147 for FY 1994-95, and amending the original contract. The Chamber of Commerce concurs with this recommendation. BOARD/COMMISSION RECOMMENDATION: Not applicable DISCUSSION: The proposed extended term and contract amendment effectively continues the agreement which the City has had with the Chamber of Commerce for the past three years. The general purpose of this agreement has been and continues to be the provision of general public information services to residents, visitors, mass media, potential business site selectors, and others making inquiries about Chula Vista. To more accurately reflect what the Chamber is doing to provide information services, the City has amended the scope of services to include representation at events and management time. The Chamber has started taking an active role in representing the City with booths at economic development trade shows like the Small Business Trade Show presented by Assemblyman Tom Connolly in February and the Small Business Exposition in May, and at special events like the Del Mar Fair, and the Insurance and Financial Round /l~ I Page 2, Item Meeting Date /1 7/"'¡'1 Tables using data from the City Business License Permit questionnaire. In addition, a significant amount of Chamber management time is required to ensure that all of the duties of the contract are performed in a timely and professional manner. The contract also has been amended to delete the CPI (Consumer Price Index) increase for FY 1994-95 and makes a CPI increase for FY 1995-96 an option at the City's discretion. This change reflects the recessionary economic times facing the community as well as the City's flat revenues and budget constraints. The recommendation to delete the CPI increase in FY 1994-95 is in-line with other City contracts. The Chamber concurs with this change. The basic information service of the Chamber is governed by the following provisions: 1. The extension carries the contract for one additional two-year term (FY 1994-95 through FY 1995-96). 2. The payment for FY 1994-95 would not increase from the $30,147 paid in FY 1993-94. The City paid the Chamber $28,500 in FY 1991-92, with subsequent years' payments increased by the CPI up to a maximum of 5% per year. 3. The contract may be terminated by either party for any reason by providing 30 days written notice. 4. The Chamber shall respond to all walk-in, phone and mail inquiries. Responses will be accurate, cooperative and timely, and will promote goodwill on behalf of the City. The Chamber shall provide qualified and adequately trained staff to respond to a broad range of inquiries as specified in the contract. 5. The Chamber shall show no preferential treatment to Chamber members or any other group or individual persons or businesses. However, whenever possible, referrals shall be made to Chula Vista businesses. 6. The Chamber shall submit quarterly reports to the City showing the number and type of inquiries and responses, and the costs associated with providing the service. 7. The Chamber shall not charge a fee for providing information unless specifically approved in writing by the City. The Chamber may charge a fee for maps which it prints and produces. Large booklets may carry a minimal charge following further consideration by the City. 1/ -,,2 Page 3, Item Meeting Date II 7J'1)'i 8. The City's contract payments shall be used solely for providing general infonnation services and shall not be used to support any political activities. 9. The Chamber shall provide new and pertinent infonnation to the visitor infonnation centers, and shall develop and utilize standardized packets of infonnation for response to general inquiries with the City's Community Development Department. The Chamber's Quarterly Reports provide a good indication of the range of services the City is obtaining from this contract. In the course of FY 1993-94, a total of 12,408 inquiries were initiated on general infonnation items. The number of inquiries has remained fairly constant during this contract period. The breakdown by subject matter during the past year is as follows: TOTAL AVG. PER MONTI-I New Resident 462 39 Tourist/Visitor 1107 92 Special Events 1028 86 Government Services 850 71 Mexico 1808 151 Business/Service Referrals 1830 153 General Civic Infonnation 1653 138 Mass Transit 311 26 Recreation 100 8 *Other 3557 272 12408 1034 *Other category includes 75%-business problem solving; 10%-business start-up kits; 5%- business relations; SOlo-citizen complaints and SOlo-clearing house for Social Services. One factor which the quarterly report does not reflect is public satisfaction with the level and quality of service provided. A post card survey was started recently and to date only 14 responses have been received. However, all but one of the respondents rated the service as excellent (the other person said it was good), all said they received their infonnation in a timely manner, and all respondents felt that they had been treated courteously by Chamber employees. Staff intends to continue this fonnal survey during J/~<J Page 4, Item Meeting Date II 7/)"/1'1 the contract extension period. CONCLUSION: The services covered by this contract can be provided more efficiently by the Chamber than by City staff. Current staffing levels do not pennit the City to respond to the volume and types of inquiries received by the Chamber. While it would be possible to hire and train additional employees to perform these tasks, the costs of salaries and benefits would exceed the cost of contracting for the services. FISCAL IMPACT: The FY 1994-95 cost for this service will remain at the FY 1993-94 cost of $30,147. It has been budgeted and approved in the Non-departmental Budget. Had the CPI increase been included, it would have amounted to a total contract amount of $30,780 or an additional $633. As indicated previously, this potential increase has been deleted from the contract. The base amount of the contract was $28,500 for FY 1991-92 with subsequent costs of $29,469 in FY 1992-93 and $30,147 in FY 1993-94. All Chamber contract expenditures by the General Fund are 50% reimbursed by the Redevelopment Agency. II" '1 RESOLUTION NO. /75'?,2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA EXERCISING OPTION TO EXTEND TERMS OF CHAMBER OF COMMERCE AGREEMENT FOR GENERAL INFORMATION SERVICES FOR TWO YEARS AND AMENDING CONTRACT WHEREAS, in June 1988, the City Council approved an agreement with the Chula vista Chamber of Commerce for general public information and referral services; and WHEREAS, this agreement was for a one-year term with options for the city to extend it for two additional one-year terms; and WHEREAS, by exercising these options, the City extended this agreement through FY 1990-91; and WHEREAS, a new contract with an initial term of three years through FY 1993-94 was approved by the City Council in September 1991; and WHEREAS, that contract included an option for the City to extend the agreement for an additional two-year term. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby exercise its option to extend the term of the Chamber of Commerce agreement for general information services for two years through FY 1995-96 at a cost of $30,147 for FY 1994-95. BE IT FURTHER RESOLVED that the City Council does hereby approve the First Amendment to Contract with the Chamber of Commerce to delete CPI increase in FY 1994-95, a copy of which is on file in the office of the city Clerk as Document No. (to be completed by the city Clerk in the final document). BE IT FURTHER RESOLVED that the Mayor of the city of Chula Vista is hereby authorized and directed to execute said amendment for and on behalf of the City of Chula vista. Presented by Approved as to form by ~A~' /h~ Ge~ge Krempl, Deputy City / Manager 1/, ) ;'<'L ,0<', --j-, (' ~. -" /., / J'.- I ~ >Co. ,'_ /,_ Bruce M. Boogaard, City Attorney C:\rs\cha.ber.xtn //-..5 /11-6 FIRST AMENDMENT TO CONTRACT DATED SEPT. 10, 1991 TO PROVIDE GENERAL INFORMATION SERVICES TO THE GENERAL PUBLIC This first amendment to contract, entered into this day of 1994, for the purposes of reference only, and effective as of the date last executed between the parties, is between the CITY OF CHULA VISTA (hereinafter "City") and the CHULA VISTA CHAMBER OF COMMERCE (hereinafter "Chamber"). RECITALS WHEREAS, the Chula Vista Chamber of Commerce was awarded a contract to provide general information to residents and visitors to the City for a three-year period commencing Sept. 10, 1991; and WHEREAS, the City of Chula Vista desires to continue providing for the general informational needs of residents and visitors to the city; and WHEREAS, the Chula Vista Chamber of Commerce occupies a unique public service position in the city; and WHEREAS, the Chula Vista Chamber of Commerce has provided general information services to the public at large for many years; and WHEREAS, Chamber warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Chamber to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; and WHEREAS, the City of Chula Vista and the Chula Vista Chamber of Commerce have developed a mutually beneficial agreement to ensure a high level of information public service is maintained for the good of the entire city; and, NOW, THEREFORE, BE IT RESOLVED that the parties mutually agree that the provisions of the agreement dated Sept. 10, 1991, will remain in full force and effect except that Section 1 shall be amended to add subsections "L" and "M" as follows: 1: L. The Chamber shall represent the City at selected trade shows and work with the City's economic development staff to obtain materials and displays, as appropriate. The Chamber shall also represent the City at selected special events to promote the City to visitors and enhance its regional image. 1 : M. The Chamber shall provide the necessary management time required to ensure that all of the above listed services are performed in a timely and professional manner. II - '} Further, Section 2.A of the agreement dated September 10, 1991 shall be amended to read as follows: 2: A. The City shall pay to the Chamber $30,147 in quarterly payments for Fiscal Year 1994-95. The annual cost and quarterly payments may be adjusted at the beginning of Fiscal Year 1995-96 in proportion to the percentage increase of the All Urban Consumers Price Index for the San Diego Region (CPI) for the most recent twelve months, up to a maximum of 5% per year, as approved by the City. Quarterly payments shall be made within ten (10) work days after receipt of quarterly reports to be submitted by the Chamber as specified in Section 2.C. /I'~ _0'__'_"-'.-'-""""- SIGNATURE PAGE TO FIRST AMENDMENT TO CONTRACT DATED SEPT. 10, 1991 TO PROVIDE GENERAL INFORMATION SERVICES TO THE GENERAL PUBUC IN WITNESS WHEREOF, City and Chamber have executed this Agreement this day of 1994. THE CITY OF CHULA VISTA CHULA VISTA CHAMBER OF COMMERCE Mayor President Chamber CEO Approved as to form by ¡fitt lz4(~ City Attorney //"'9 CONTRACT FOR PROVIDING GENERAL INFORMATION SERVICES TO TIlE GENERAL PUBliC TIús agreement is made this ..1!2..±h.. day ofc-~~991, for the purposes of reference only, and effective as of the date last executed between the parties, between the CITY OF CHULA VISTA (hereinafter "City") and the CHULA VISTA CHAMBER OF COMMERCE (hereinafter "Chamber") and is made with reference to the following facts: RECITALS WHEREAS, the City of Chula Vista desires to continue providing for the general informational needs of residents and visitors to the city; and WHEREAS, the ChuIa Vista Chamber of Commerce occupies a unique public service position in the city; and WHEREAS, the ChuIa Vista Chamber of Commerce has provided general information services to the public at large for many years; and WHEREAS, Chamber warrants and represents that they are experienced and staffed in a manner such that they are and can prepare and deliver the services required of Chamber to City within the time frames herein provided all in accordance with the terms and conditions of this Agreement; and, WHEREAS, the City of ChuIa Vista and the ChuIa Vista Chamber of Commerce have developed a mutually beneficial agreement to ensure a high level of informational public service is maintained for the good of the entire city; and, NOW, THEREFORE, BE IT RESOLVED that the City and the Chamber do hereby mutually agree as follows: SECTION 1: SCOPE OF SERVICES The Chamber of Commerce agrees to provide the following services: A. The Chamber shall respond to all walk-in, phone and mail inquires received making reasonable and appropriate requests for information by the Chamber from individuals, groups, businesses, news media, etc., and persons referred by the City. Responses shall be accurate, complete, cooperative and promote goodwill on behalf of the City. Responses shall be made in a timely manner. Walk-in and phone inquiries shall be responded to as they are received unless additional research is required. Mail inquiries shall be responded to within three (3) working days after the receipt of such inquiries, unless extensive research is required. 1 //'11 1\ II." 3::n <Z.0'\I- B. The Chamber shall provide qualified staff to respond to inquiries. The Chamber shall provide adequate training and develop written guidelines and infonnation to ensure that personnel are capable of providing extensive infonnation including, but not limited to, the following: 1. Clubs and Organizations - Usting witlún community 2. Activity Schedules - Community events including, parades, displays, seasonal promotions 3. Street Infonnation 4. Medical Services - Listing witlún community 5. Professional Services - Listing witlún community 6. Chamber of Commerce Service Directory 7. Churches - Locations and schedules 8. Lodging Facilities - Usting within community 9. Nature Interpretive Center 10. Meeting rooms - Locations 11. Real Estate offices 12. Government Services & RefelTals to Appropriate Department 13. Schools - Listing within community 14. Recreation Sites - Listing within community including parks, playgrounds, picnic areas and local beach infonnation 15. Historical Sites 16. Health Facilities 17. Public Officials - Usting within community 18. Museums and Schedules 19. Public mass transit, HandyTrans, etc. 20. Mexico - Infonnation on tourist cards, parking, etc. 21. Tourist Attractions - Locations and schedules 22. Post Office and other Public Building Locations 23. Newspapers and local publications including brochures on city and surrounding areas 24. Mobile home parks 25. Chula Vista Harbor 26. Restaurants 27. Demographics about Chula Vista including population, housing, etc. C. Chamber staff shall be available to respond to walk-in and phone inquiries Monday through Friday from 9:00 a.m. to 5:00 p.m., except for New Years Day, Martin Luther King Day, President's Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, the day after Thanksgiving Day, and Cluistmas Day. Holidays cited above falling on a Saturday will be observed on Friday. When a holiday occurs on Sunday, it will be observed on the following Monday. 2 1/0# / ~ D. The Chamber shall develop and utilize standardized packages of infonnation for responding to general inquiries about Chula Vista as a visitor destination and for new or potential residents of the City. Such packages shall be maintained with current infonnation and shall meet with the approval of the City. The packages may be used, but shall not be deemed solely adequate, for inquiries making reasonable, specific requests for infonnation not routinely included in the packages. E. For inquiries beyond the expertise of the Chamber, referrals may be made to more appropriate entities. Such referrals shall be recorded and reported in the quarterly summary to the City. F. The Chamber shall coordinate responses to significant business relocation inquiries with the City's Community Development Department. G. During a specified period each year of this contract detennined by the City and Chamber, the Chamber shall develop and make available to the public unstamped response cards addressed to the City to obtain feedback on the quality of infonnation provided. Each response to mail inquiries shall include such a card. All cards returned to the Chamber shall be forwarded to the City. H. The Chamber staff shall be nearly dressed and courteous at all times and shall present a positive, friendly and responsive image of the city. 1. The Chamber shall not charge a fee for providing infonnation UIÙess specifically approved in writing by the City. Chamber may request approval at any time and will provide a complete list of the booklets of infonnation being sold by July 1 of each year of this agreement. Generally, extensive booklets of infonnation that relate to the topics in Section LB. 1-27 consisting of more than 15 pages will be considered for approval by the City. City maps will be sold to the City at cost, to the City's Visitor Infonnation Centers at member cost and for no more than $3 to the general public. J. The Chamber shall provide to the visitor infonnation centers at E street and 1-5 and at Bonita Road and 1-805 updated infonnation upon request. The Chamber shall include the centers on the Chamber's mailing list and sell city maps to the centers at the member price. The Chamber shall exercise care in ensuring the visitor infonnation centers are provided with new, pertinent infonnation as it arises, such as special events, lists of visitor-oriented businesses and attractions. K. Responses to inquires shall show no preferential treatment to Chamber members or any other group or individual persons or businesses. Wherever possible, however, referrals to businesses shall be made to businesses in the City of Chula Vista. Referrals shall be rotated among businesses qualified to provide the service or services requested. 3 11-1 J SECTION 2: PAYMENT A. The City shall pay to the Chamber $28,500 per year in quarterly payments for the tenn of this agreement. The annual cost and quarterly payments shall be adjusted at the beginning of each fiscal year, after the first year, in proportion to the percentage increase of the All Urban Consumers Price Index for the San Diego Region (CpO for the most recent twelve months, up to a maximum of 5% per year. Quarterly payments shall be made within ten (10) work days after receipt of quarterly reports to be submitted by the Chamber as specified in Section 2.C. B. The payments from the City to the Chamber shall be used only for providing general infonnation services to the general public as outlined in Section 1. Payment for these services shall not be used in support of any political activities for any candidate or issue, nor shall they be used to supplant other Chamber funds in any manner that results in such Chamber funds being used to support political activities for any candidate or issue, Any political expenditures made in relationship to the Chamber will be as Political Action Committee (PAC) funds specifically raised for political purposes. C. The Chamber shall record and submit in writing quarterly reports to the City for the quarters ending September 30, December 31, March 31 and June 30. Said reports are due within 30 calendar days of the end of the quarter. Reports shall include the following: 1. Number of inquiries received categorized by mail, phone and walk-in visitors, and the number of inquiries responded to by mail. Types of inquiries shall be categorized by, but not limited to, the following topics: a. New residents b. Tourist/visitor related c. Special events d. Government services, regulations, ordinances, elected officials, etc. e. Mexico f. Business/service referrals g. General civic infonnation, hospitals, newspapers, clubs, churches, charities, etc. h. Mass transit i. All others 2. Number of inquiries reqUlnng additional research beyond the base of infonnation maintained by the Chamber either in written fonn or through the personal knowledge of Chamber staff. 4 /I~/L./ 3. A tally of the number of inquiries referred to other entities, including date of inquiry, type of inquiry (walk-in, phone or mail), entity referred to, and subject of inquiry. The Chamber will provide the name and address of person or business making inquisition, if appropriate. 4. Costs associated with providing infonnation services, including, but not limited to, employee staff time required, office supplies, postage, printing, office equipment and phone calls. SECTION 3: TERM A. The tenn of this agreement shall be for three (3) years, commencing on July 1, 1991 and ending on June 30, 1994 subject to the temùnation provisions of this agreement. The City has the option to extend the tenn of this contract for a two year increment by providing written notice to Chamber of City's intent to exercise this option by June 30, 1994. B. If, through any cause, Chamber shall fail to fulfill in a timely and proper manner its obligations under this Agreement, or if Chamber shall violate any of the covenants, agreements or stipulations of this Agreement, City shall have the right to temùnate this Agreement by giving written notice to Chamber of such tennination and specifying the effective date. In that event, quarterly payments will be prorated and less any damages caused City by Chamber's breach. C. The City or Chamber may tenninate this agreement at any time and for any reason by providing a written notice of such temùnation at least thirty (30) days prior to the effective date of such temùnation. In that event, quarterly payments will be prorated. Chamber hereby expressly waives any and all claims for damages or compensation arising under this Agreement except as set forth herein. SECTION 4: SæEDULE AND ADMINISfRATION A. The City may evaluate the quality and quantity of service provided by the Chamber using various methods including, but not limited to, unannounced phone, mail and walk-in inquiries designed to evaluate quality and timeliness of responses, random checks of staff knowledge, and periodic obseIVations of Chamber staff responding to inquiries. Such reviews shall be limited to infonnation services provided under this contract and shall not include other Chamber activities. B. Chamber shall defend, indemnify and hold hannless the City, its elected and appointed officers and employees, from and against all claims for damages, liability, cost and expense (including without limitation attorneys' fees) arising out of the conduct of the Chamber, or any agency or employee, subcontractors, or others in 5 / J. /> connection with the execution of the work covered by this Agreement, except only for those claims arising from the sole negligence or sole wiIlful conduct of the City, its officers, or employees. Chamber's indemnification shaIl 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, Chamber at its own expense shaIl, upon written request by the City, defend any such suit or action brought against the City, its officers, agents, or employees. Chamber's indemnification of City shaIl not be limited by any prior or subsequent declaration by the Chamber. C. Chamber shaII, throughout the duration of this Agreement, maintain the foIlowing insurance coverages. 1. Commercial General liability [nsurance including Business Automobile liability Insurance in the amount of $1 miIIion combined single limit, which names the City of Chula Vista as additional insured and is primary to any insurance policy carried by the City. 2. Statutory Worker's Compensation Insurance and Employer's liability [nsurance in the amount of $1 mi1lion. All policies shaII be issued by a carrier that has a Bests' Rating of "A, Class V', or better, or shaII meet with the approval of the City's Risk Manager. Chamber will provide, prior to commencement of the services required under the agreement, certificates of insurance for the coverages required in this section, and, for Commercial General liability [nsurance, a policy endorsement for the City as additional insured, a policy endorsement stating the Chamber's insurance is primary and a policy endorsement stating that the limits of insurance apply separately to each project away from premises owned or rented by the Chamber. Certificates of insurance must also state that each policy may not be canceled or significantly changed without at least thirty (30) days written notice to the City. D. No suit or arbitration shaII 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, as same may from time to time be amended, the provisions of which are incorporated by this reference as if fully set forth herein, and such policies and procedures used by the City in the implementation of same. 6 / /, )~ Upon request by City, Chamber shall meet and confer in good faith with City for the purpose of resolving any dispute over the terms of this Agreement. E. Should that dispute result in litigation, it is agreed that the prevailing party shall be entitled to recover all reasonable costs incurred in the defense of the claim, including costs and attorney's fees. F. The Services of Chamber are personal to the City, and Chamber shall not assign any interest in this agreement, and shall not transfer any interest in the same (whether by assignment or novation), without prior written consent of City which City may unreasonable deny. G. City is interested only in the results obtained and Chamber shall perform as an independent contractor with sole control of the manner and means of performing the services required under this Agreement. City maintains the right only to reject or accept Chamber work products. Chamber and any of the Chamber agents, employees or representatives are, for all purposes under this Agreement, an independent contractor and shall not be deemed to be an employee of City, and none of them shall be entitled to any benefits to which City employees are entitled including but not limited to, overtime, retirement benefits, workers compensation benefits, injury leave or other leave benefits. H. For purposes of this agreement, the City Manager or his or her designee shall be the contract administrator. For those conditions requiring written approval of the City, the City Manager or his or her designee shall have the authority to provide said written approval. WRlTI'EN CORRESPONDENCE RELATING TO THIS AGREEMENT SHAll. USE THE ADDRESSES GIVEN BELOW: City Manager 276 Fourth Avenue City of Chula Vista Chula Vista, CA 91910 Chula Vista Chamber of Commerce 233 Fourth Avenue Chula Vista, CA 91910 7 //.,/? SIGNATURE PAGE TO AGREEMENT FOR PROVIDING GENERAL INFORMATION SERVICES TO TIlE GENERAL PUBUC IN WITNESS WHEREOF, City and Chamber have executed trus Agreement this Ib-U- day of~ii:-luA.-. 1991. THE CITY OF CHULA VISTA CHULA VISTA CHAMBER OF COMMERCE " 0~) 11 /¡ / 7 (7 7 !j (' , / ;,(/{/'f; .~. \..-(.1 c·· eLl' City Cérk ¿: _ ' ,/ ð_V¡lh/bl~ Mayor ATIEST ~ A:CHAMBER 8 I/"/~ --~.._-"-~_..."._._,-_.-. ----_..._-~--_..~---------"'- AN INVESTMENT IN THE FUTURE BOARD OF DIRECTORS President Diane Flint President Elect Jim Weavsr Vice Presidents: Greg Cox Chris Lewis Mary Anne Stro Dave Ward Members: Patricia Barnes Renee Bute Joanne Ciayton Steve Collins Chuck Day Robert Garcia Susan Herney Cathi Jamison Tim Lewis Scott Mosher Robert Penner, MD Frank Scott Bob Thomas Brad Wilson Past President T Pat Cavanaugh executive DIrector Rod Davis CHULA VISTA CHAMBER OF COMMERCE July 7, 1994 George Krempl Deputy City Manager City of Chula Vista 276 Fourth Ave. Chula Vista, CA 91910 Dear George: Attached is our invoice, purchase order #203259, for Public Information Services provided for the City of Chula Vista. Please contact me if you have any questions. Sincerely yours, CHULA VISTA CHAMBER OF COMMERCE ~¿~ Executive Director Enclosures pc: Jeri Gulbransen Quarterly 4-6, 1994 J /; J' ACCREDITED CtCA..I 01' COM.~,," C.."". O. to'"II.U O·'.'U."'O'T&'JI 2 3 3 F 0 U A T H A V E N U E . C H U L A V 1ST A. C, A L I FOR N I A 9 1 9 1 0 . TEL. : (6 1 9) 4 2 0 . 6 6 0 3 Please remit to: CHULA VISTA CHAMBER OF COMMERCE 233 Fourth Avenue Chuta Vista, CA 91910 (619) 420-6602/03 BiIt To: Purchase Order # 203259 George KTempl, Deputy City Mgr. CITY OF CHULA VISTA 276 Fourth Ave. Chuta Vista, CA 91910 Date Description Charges Credits Batance 07/00/94 Quarterly Report for the months of April, May, and June 1994 $7,537.00 Public Information Services provided for the City of Chula Vista II,J-() June 30, 1994 Cost/Utilization [hula Uista Chamber of Commerce Quarterly Report Rpril, May, June 1994 1. Staff Time 417 hours* @ $8.00 2. Supplies 3. Postage 4. Printing 5.Tradeshow Rttendance 48 hours @$8.00 6. Project Mgmt. Time 49 hours @$21.00 Total EHpenses City Contract $3336.00 $0887.00 $0728.63 $2653.00** $0384.00 $1008.00 $8996.63 $7537.00 *417 hours staff time (not including management 53.5% phone 44% walk-in 2.5% mail receiued 100% 223.1 0 hours 183.48 hours 1 0.42 hours 417 hours Mail outgoing 181.27 hours ($1450.16) not charged **Includes 6,000 seruice response post cards. )/',2./ CHULA VISTA CHAMBER OF COMMERCE QUARTERLY REPORT April, May, June 1994 June 30, 1994 MAIL REPLIES PHONE WALK-IN RECEIVED MAILED New Resident 033 030 005 031 TouristlVisitor 157 150 008 100 Special Events 130 025 008 050 Government Services 139 042 000 052 Mexico 141 340 000 106 Business/Service Referral 439 201 008 156 General Civic Information 256 163 038 150 Mass Transit 036 016 002 010 Others 755 351 007 247 Recreation 010 Q1Q QQ2 QQß 2,096 1,328 078 910 TafAL NUMBER OF INQUIRIES: 3,502 I J.. .2:2. CITY COUNCIL AGENDA STATEMENT SUBMITTED BY: 1'l5¿,o RESOLUTION AMENDING THE CITY'S 1993/94 AND 1994/95 HOME PROGRAM DESCRIPTIONS AND AUTHORIZING THE SUBMITIAL OF THE AMENDMENT TO THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Community Developme~(trector t.ç . City Manager JGI. ~ ~1 u on (4/5ths Vote: Yes _ No.xJ Council Referral No. Item I J.. Meeting Date 7/19/94 ITEM TITLE: REVIEWED BY: BACKGROUND: The HOME Investment Partnership Program (HOME Program) is a federal housing program which allocates funds by formula directly to state and local governments to promote affordable housing. HOME funds may be used to provide affordable rental housing and home ownership through new construction, acquisition, rehabilitation, and tenant-based rental assistance. Participating jurisdictions are able to provide this assistance to both for profit and non-profit housing developers or directly to qualified home buyers or renters. The assistance may take the form of grants, loans, advances, equity investments, and interest subsidies. Over the past three years the City has been allocated a total of $1,895,000 of HOME funds. Last year the City spent $610,000 of these funds for the development of a short-term housing facility for homeless families. Every year HUD requires the City to prepare a HOME Program description, stating how it intends to use the HOME allocation and how it will comply with various HOME regulations. Past year program descriptions have split the funds evenly between three categories; new construction, substantial rehabilitation and acquisition, as a good starting point until specific opportunities arose in any of the categories. If the City Council wishes to amend the HOME program description it may do so at any time. For example, if the Council should decide to do more rehabilitation or acquisition rather than new construction, it can amend the HOME program description by resolution. HUD approval is not required. RECOMMENDA nON: That the City Council adopt the resolution amending the 1993/1994 and the 1994/1995 HOME Program descriptions by increasing the acquisition category to reflect the availability of sufficient funds to undertake the Trolley Terrace, an affordable for-sale housing development with associated. childcare. /).~J Page 2, Item Meeting Date I)", BOARDS/COMMISSIONS RECOMMENDA nON: The Housing Advisory Commission is supportive of the Trolley Center Terrace project for which the HOME funds are recommended to be used. DISCUSSION: Elsewhere in this July 19, 1994, agenda, the Council is considering the acquisition of a 2.01-acre property located at the northwest corner of Ada and Industrial Boulevard for the potential development of a for-sale housing development with associated childcare. The site would be developed by a team of non-profit organizations. At present, Habitat for Humanity and Episcopal Community Services are working on a proposal. Procedurally, in order to be prepared to use the HOME funds for this acquisition, it will be necessary to amend the current 93/94 and 94/95 program distribution of funds by increasing the homeowner property acquisition category, as indicated in Exhibit A to the resolution to reflect the availability of sufficient funds necessary to undertake the housing project. This can be done by increasing the homeowner property acquisition category. Fund balances in the other development categories will be shifted, and the total HOME grant amount will remain the same. FISCAL IMPACT: The amendment of the HOME Program description will be the first step toward expending a maximum of $643,000 for the acquisition of an affordable housing site. A benefit of the timely use of the HOME funds for this for-sale affordable housing project is that it will make the City eligible in the short-term to receive additional HOME funds from HUD that are recaptured from other cities that are not performing adequately. [SS/MISC/DlSK#5/HOME.a13] / ;. , ..l- RESOLUTION 1?.5io RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE 1993/1994 AND 1994/1995 HOME PROGRAM DESCRIPTIONS AND AUTHORIZING THE SUBMITTAL OF THE AMENDMENT TO THE U, S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT WHEREAS, the City of Chula Vista has been allocated a total of $1,895,000 of HOME federal housing funds; and, WHEREAS, the HOME program regulations require a participating jurisdiction to submit a program description each year describing the proposed use of funds; and WHEREAS, the City wishes to amend the 1993/1994 and 1994/1995 HOME Program descriptions to respond to an opportunity to help provide affordable home ownership opportunities to lower income residents; and, WHEREAS, the HOME Program will enable the City to meet the housing needs of lower-income residents. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does hereby find, order, determine and resolve to amend the 1993/1994 and 1994/1995 HOME Program Descriptions as reflected in Exhibit A, attached hereto and incorporated herein as though fully set forth, by increasing the homeowner property acquisition category to reflect the availability of sufficient funds necessary to undertake the development of the Trolley Terrace, a for-sale housing project with associated child care on property located at the northwest corner of Ada and Industrial Boulevard, and authorize the Mayor to submit the amendment to the U. S. Department of Housing and Urban Development. PRESENTED BY: APPROVED AS TO FORM BY: ~<;~ ,f)¡ ~/~/- ,k: Bruce M. Boogaard 0 City Attorney Chris Salomone Community Development Director /;2. , J EXHIBIT A CITY OF CHULA VISTA HOME PROGRAM FUND DISTRIBUTION 1993-94/1994-95 CURRENT DISTRIBUTION OF HOME FUNDS CATEGORY TOTAL HOME $ RENTAL $ OWNER $ New Construction $402,600 $201,300 $201,300 Substantial Rehabilitation 180,600 90,300 90,300 Other Rehabilitation -0- -0- -0- Acquisition 402,600 201,300 201,300 Tenant Assistance -0- -0- -0- CHDO Administration- 45,000 N/A N/A City Administration $114,200 N/A N/A PROPOSED DISTRIBUTION OF HOME FUNDS I CATEGORY I TOTAL HOME $ I RENTAL $ I OWNER $ I New Construction $202,600 $101,300 $101,300 Substantial Rehabilitation 140,200 70,100 70,100 Other Rehabilitation -0- -0- -0- Acquisition 643,000 -0- 643,000 Tenant Assistance -0- -0- -0- CHDO Administration- 45,000 N/A N/A City Administration $114,200 N/A N/A -Set aside for Community Housing Development Organizations (CHDO) C:\JUAN\MISC I ).. ~f COUNCIL AGENDA STATEMENT Item 13 Meeting Date 7/19/94 ITEM TITLE: II, Public Hearing on the enactment of an ordinance for Storm Water Management and Discharge Control Ordinance t:1.S'1? Amending Sections 14.04.010, 14.06.010, 14.08.030, 14.08.090, 14.08.140, 14.08.170, 14.10.010, and 14.14.010 of the Chula Vista Municipal Code, Repealing Section 14.06.030 of the Chula Vista Municipal Code, Repealing Chapter 14.18 of the Chula Vista Municipal Code and Adding Chapter 14.20 "Storm Water Management and Discharge Control" to the Chula Vista Municipal Code, all relating to regulation of pollutants in storm water discharges and to wasting water B.. Report on the options available for levying and collecting fines from those individuals that violate discharge regulations in lieu of continual increases in Storm Drain Fees REVIEWED BY: City Manager J4 ~ ___ (4/5ths Vote: Yes _No_X...) SUBMITTED BY: City Attorney Director of Public Wor Council Referral No. 2342 In accordance with the federal Clean Water Act Amendments of 1987, on December 8, 1988 the United States Environmental Protection Agency (USEPA) proposed regulations for the issuance of National Pollutant Discharge Elimination System (NPDES) permits to regulate storm water discharge to waters of the United States. The final version of these regulations was issued on November 16, 1990. In order to allow local agencies an opportunity to gradually come into compliance with the USEPA regulations, on July 20, 1990 the California Regional Water Quality Control Board (CRWQCB) issued an "early" NPDES permit (CRWQCB Order No. 90-42) for the San Diego Region. The permit covers all of the eighteen incorporated cities, the County of San Diego, and the San Diego Unified Port District. The conditions placed on the City and all other co-permittees in Order No. 90-42, if complied with, are the legal equivalent of compliance with the federal regulations. Order No. 90-42 specifies a number of tasks that must be undertaken by each agency. One task requires all agencies to enact the necessary codes, laws, and ordinances to ensure the implementation of federally mandated storm water and urban runoff pollution control programs. This ordinance accomplishes that task by making it unlawful for any person to discharge pollutants to the City's storm water conveyance system. Further, the proposed ordinance 13-/ Page 2, Item Meeting Date 7/19/94 /3 complies with the "early" NPDES Permit requirements and with the federal regulations, with which the City must be in full compliance by July 1995. At the June II, 1991 meeting of the City Council, the Storm Drain Fee and Fund were established to fund implementation of the NPDES program. Council also directed staff to include, as part of its annual review of the Storm Drain Fee, options for levying and collecting fines against those individuals that violate discharge regulations in lieu of continual increases in the fees, which would affect all storm water conveyance system users (Council Referral No. 2342). A discussion of this issue is included herein. RECOMMENDATION: That the City Council conduct a hearing on the enactment of an ordinance for Storm Water Management and Discharge Control, introduce the ordinance (Item b) for first reading, and accept staff s report on Item c, as described in the above titles. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. BACKGROUND: Each time it rains, pollutants are washed off streets, roofs, lawns and landscaping, parking lots, and other urban areas and are discharged untreated. either directly or indirectly, into surface waters (creeks, streams, rivers, coastal wetlands, bays, oceans, etc.). These discharges can lead to the degradation of the affected surface waters. Pollutants include, but are not limited to, sediments, oil and grease, heavy metals and toxic materials. Table I lists pollutants that are tvpically present in urban runoff and the common sources of these pollutants, based upon national studies. Federal and State mandates require the implementation of storm water and urban runoff pollution control programs in order to prevent, control, and/or reduce pollutants entering into, carried through, and discharged from storm water conveyance systems to surface waters. The Federal and State storm water program consists of regulating discharges from municipal storm water conveyance systems, from specific industrial facilities, and from construction sites or developments that disturb at least five acres. Permits are issued and administered by the State Water Resources Control Board for all three facets of the program. Enforcement of the Permits is by the State Water Resources Control Board and by the Regional Water Quality Control Board. Order No. 90-42 is a permit regulating discharges from municipal storm water conveyance systems in San Diego County. This permit implements those laws and similarly requires the development and implementation of programs for the reduction and/or elimination of pollutant and non-storm water discharges to State and Federal surface waters. Order No. 90-42 is scheduled to expire on July 16, 1995, at which time the San Diego County co-permittees (including Chula Vista) are required to be in full compliance with NPDES regulations. 13"'';'' Page 3, Item Meeting Date 7/19/94 IJ One task requires that each permittee inventory existing storm water and urban runoff pollution control programs, including existing laws, ordinances, and codes giving the permittee the authority to implement and enforce storm water pollution control programs within its area of jurisdiction. If the permittee lacks sufficient regulations and/or authority, then the permit specifies that codes, ordinances, and other laws must be enacted to ensure implementation of the program. Failure to do so is a violation of Order No. 90-42, the California Water Act, and the Federal Clean Water Act and could result in the imposition of severe fines, penalties, and/or imprisonment upon the City of Chula Vista and/or its officials. In response to this requirement, the staffs of the San Diego County co-permittees formed a subcommittee in April 1992 to develop a "generic" storm water management and discharge control ordinance based upon Order No. 90-42 and the NPDES regulations. This "generic" ordinance would be used by all twenty co-permittees as the basis for a storm water ordinance in each of their jurisdictions. Between April 1992 and February 1993, the subcommittee developed the "generic" ordinance and in February 1993, the final draft of the ordinance was completed. Using the subcommittee's final draft as a basis, the Department of Public Works and the City Attorney's office developed the proposed "Storm Water Management and Discharge Control" ordinance. To date, six co-permittees (City of San Diego, City of EI Cajon, City of Vista, City of Imperial Beach, City of Escondido, and County of San Diego) have approved ordinances based upon the "generic ordinance". The proposed "Storm Water Management and Discharge Control" ordinance is generally consistent with the "generic ordinance", but has been modified in order to be compatible with existing provisions in the Chula Vista Municipal Code. These changes include the following: I. Definitions have been added, clarified, or deleted, as necessary; 2. Ambiguities have been corrected; 3. Provisions that duplicate existing sections/regulations of the Chula Vista Municipal Code have been incorporated by reference; 4. Administrative, sampling, and inspection procedures have been modified to be consistent with those procedures specified in Title 13 "Sewers"; and, 5. Administrative enforcement and judicial enforcement procedures have been modified to be consistent with those procedures specified in Title 13 "Sewers". DISCUSSION: Review of the current Municipal Code revealed little in the way of ordinances which could be used to control the discharge of pollutants to the City's municipal storm water conveyance system from all sources. There is a "general nuisance" law and ordinances prohibiting the discharge of liquids and solid wastes to streams and bays, but there is no comprehensive prohibition regarding the discharge of all pollutants to all components (i.e., streets, gutters, inlets, pipes, ditches, etc.) of the City's storm water conveyance system. Table 2 (attached) shows existing Federal, State, and local regulations that are helpful, but not entirely effective /3 -,1 Page 4, Item Meeting Date 7/19/94 15 on their own, in controlling stormwater pollution from all sources, including unregulated businesses, industries, and individual residents. The proposed Ordinance will prohibit the discharge of pollutants, both directly and indirectly, to all parts of the City's municipal storm water conveyance system. Section 14.20.100 of the proposed ordinance states that "It is unlawful for any Person to discharge Non-Storm Water into the Storm Water Conveyance System.... ", with some specific exceptions, including fire fighting water, landscape irrigation and lawn watering, potable water discharges, non-commercial car washing, dechlorinated swimming pool water, and facilities with a State NPDES discharge permit. Even the exempted discharges may be regulated if they are later determined to be in violation of State and Federal water quality standards. The ordinance requires any person, business, industry, or construction site that is engaged in activities which will, or may, result in pollutants entering the City's storm water conveyance system to undertake measures to reduce the risk of non-storm water or pollutant discharges to the maximum extent practicable. The ordinance also requires persons owning or occupying property through which a natural watercourse passes to keep it free of trash, debris, and other pollutants which may subsequently wash downstream into the City's storm water conveyance system. Compliance with the proposed ordinance will require that people think before they dispose of anything, or allow the disposal of anything, in the storm water conveyance system. Some new or additional costs for the implementation of best management practices may be incurred by the City, residents, and those businesses and industries not currently regulated by an NPDES Storm Water Permit. These best management practices include properly cleaning parking lots, sidewalks, and other paved surfaces of dirt and debris, properly disposing of wastes and other materials, and properly maintaining watercourses. However, none of these requirements are particularly burdensome or expensive and they apply equally to all nersons in the City, not just a small segment of the community. Businesses and industries that are currently regulated by an NPDES Storm Water Permit must simply comply with the requirements of their permits in order to be in compliance with the proposed ordinance. In order to significantly improve the quality of urban runoff discharged to, conveyed through, and discharged from the City's stormwater conveyance system to the receiving waters, all persons must take part in pollutant reduction, no matter how small that part may be. The Storm Water Management and Discharge Control ordinance is an integral part of the City's Best Management Practices (BMP) program, which aims at the reduction and/or elimination of pollution that is conveyed via the City's municipal storm water conveyance system to the Otay River, the Sweetwater River, and San Diego Bay, as well as to the City's creeks and other natural drainage courses. The proposed ordinance will enable the City to comply with the explicit mandates of Order No. 90-42 and the USEP A storm water regulations. The ordinance will not require new nermits or fees. However, it will mandate that all citizens, business persons, and property owners in the City reduce and prevent urban runoff pollution, /3'1 Page 5, Item Meeting Date 7/19/94 13 which has been identified as a major cause of the degradation of receiving waters in the United States. The proposed ordinance gives the City the authority to perform inspection and sampling activities, after obtaining legal entry pursuant to consent or an administrative search warrant issued by a court, on any premises within the City that discharges to the City's municipal storm water conveyance system and is suspected of possible pollutant discharge to the City's storm water conveyance system. Enforcement action, pursuant to the ordinance, will only be taken if water sampling and testing by the City or the polluter indicates that a violation from a specific site has occurred or if other physical evidence indicates that a violation from a specific site has occurred. If remedial action is not taken by the party or parties responsible for a violation, then the ordinance provides for administrative and judicial remedies, both civil and criminal. The ordinance also allows the City to recover all costs (at the full-cost recovery rate) associated with detecting a violation, identifying the source of that violation, and eliminating the pollutant discharge and/or reducing the pollutant volume, concentration, or mass to legal discharge limits. It is important to note that the City must actively enforce this ordinance because, under the Federal Clean Water Act, the State Water Code, and Order No. 90-42, the City is responsible for any and all discharges to and from the municipal storm water conveyance system, including discharges from facilities regulated by an NPDES General Permit. The City is, therefore, subject to the possible imposition of fines and other penalties by the CRWQCB and the USEPA if individual or cumulative discharges from the City's municipal storm water conveyance system are found to violate the water quality standards and/or water quality objectives of a receiving water. From the CRWQCB's and USEPA's perspectives, fining the City is more practical than fining the actual discharger because a violation is easier to identify and affix blame at the point of discharge from the municipal storm drain system. For this reason, it is in the City's best interests to identify and control pollutant discharges to the municipal storm water conveyance system to the maximum extent practicable. Furthermore, the CRWQCB and USEPA expect municipal co-permittees to actively identify and control pollutant sources in order to satisfy requirements of municipal storm water discharge permits. It must also be noted that the federal laws mandating that the City implement municipal storm water discharge permit requirements are relatively new and are another new unfunded mandate by the Federal Government. These laws require regulated municipalities to develop adequate funding on their own for the implementation of all aspects of their urban runoff and urban runoff pollution control programs. The City of Chula Vista has complied with the requirement to develop adequate funding by establishing the Storm Drain Fee in June 1991. PROPOSED ENFORCEMENT STRATEGY: Staff proposes that initial enforcement of the ordinance consist primarily of identifying and then terminating illegal discharges/dumping and un-permitted or undocumented physical 13 ,...r Page 6, Item Meeting Date 7/19/94 1::3 connections to the City's storm water conveyance system. In addition, polluters and the general public will be educated, through direct contact and public outreach programs (i.e., mass media, City newsletter, etc.), about the problem of urban runoff/storm water pollution and how their activities may contribute to the problem. Upon first violation of the ordinance, it is proposed that polluters be issued warnings, which will help to educate them about their inappropriate actions, the Storm Water Management and Discharge Control ordinance, and the potential consequences for violating discharge prohibitions. If the issuance of a warning is not effective with an individual discharger or does not produce the desired results (i.e., reduction and/or elimination of pollutant discharge to the municipal storm water conveyance system and/or the implementation of pollution prevention measures), then these recalcitrant polluters will be issued citations, including fines and/or other civil penalties. Criminal penalties will be reserved for those dischargers that repeatedly and willfully violate the discharge prohibitions. Staff believes that this enforcement strategy will garner public support for the proposed ordinance and for the City's storm water and urban runoff pollution control programs. This is because these programs are intended to affect changes in awareness, attitudes, behaviors, habits, and practices with respect to use of the storm water conveyance system. Simply commanding compliance from the regulated community (i.e., residents, businesses, and industries) would be ineffective because so many of the common practices that cause storm water and urban runoff pollution were formerly legal and are ingrained in individuals and in society. Inspection and enforcement of the ordinance will be accomplished with Public Works/ Operations staff, Public WorksÆngineering staff, Code Enforcement staff, and City Attorney staff (if necessary). In addition, other agencies such as the County Department of Health Services, the Regional Water Quality Control Board, and the City of San Diego Water Utilities Department/Industrial Waste Program (for illicit connections or illegal discharges to the City's storm water conveyance system that should be discharged to the City's sanitary sewer system), may be utilized, if necessary, to fully enforce the provisions of this ordinance. All City staff administrative and enforcement activities related to this ordinance will be reimbursed from the Storm Drain Revenue Fund. Specific staff have not yet been identified to perform inspection and enforcement activities. It should be noted that for those businesses and facilities which have been issued NPDES Storm Water Discharge Permits by the State Water Resources Control Board and/or Regional Water Quality Control Board, the primary enforcement of said permits rests with those agenctes. OPTIONS AVAILABLE FOR LEVYING AND COLLECTING FINES IN LIEU OF CONTINUALLY INCREASING STORM DRAIN FEES: As stated previously, the proposed "Storm Water Management and Discharge Control" ordinance enables the City to impose fines and other civil and criminal penalties upon those ) :I -¿ Page 7, Item Meeting Date 7/19/94 I~ persons, facility owners, and facility operators that have caused or contributed to storm water pollution and to recover costs, at the full-cost recovery rate, incurred by the City for pollutant detection and mitigation. Collection of fines and recovery of City detection and mitigation costs will enable the City to fund a portion of its enforcement-related activities in lieu of increasing the Storm Drain Fee for said enforcement. However, because the maioritv of storm water pollution cannot be traced to specific sources and, in fact, is due primarily to the cumulative impacts of pesticide, herbicide, and fertilizer use, automobile operation (i.e., exhaust particulates, tire wear, leaking fluids, etc.), improper waste disposal practices, and erosion and siltation from all sources and land uses (residential, industrial, and commercial), future increases in the Storm Drain Fee will most likely be necessary. It should be noted, however, that, since its enactment in June 1991, the Storm Drain Fee has not been increased. The Storm Drain Fee rates will continue to be reviewed annually and all sources of Storm Drain Fund revenue, including fines and other civil penalties, will be considered by staff in order to maintain adequate funding for the NPDES program. As outlined in the previous section, staff proposes that the City adopt a "Complaint and Response" enforcement strategy, with an emphasis on public education, rather than the immediate imposition of penalties. However, recalcitrant polluters will be issued citations, including fines and/or other civil penalties. Criminal penalties will be reserved for those dischargers that repeatedly and willfully violate the discharge prohibitions. "Complaint and Response" enforcement relies on the observation and reporting of illegal dischargers and illicit connections by concerned citizens and alert City maintenance, operation, and other personnel. This enforcement strategy is particularly effective if the general public is properly educated about storm water and urban runoff pollution, which is another requirement of Order No. 90- 42. At this time, the cost of this level of enforcement and the net value of fines levied cannot be determined due to the transient and unpredictable nature of illegal discharges to the storm water conveyance system. OTHER ADDITIONS/AMENDMENTS TO CHAPTER 14: Existing sections 14.04.010, 14.06.010, 14.08.030, 14.08.090, 14,08.140, 14.08.170, 14.10.010, and 14.14.010 of the Municipal Code need to be amended to refer to Title 14 ("title") or to a specific chapter within Title 14, rather than "division". In addition, Section 14.04.010 needs to be amended to refer to the purpose and intent of the discharge prohibitions in the proposed Storm Water Management and Discharge Control Ordinance (Chapter 14.20). Section 14.06.030 is recommended to be repealed because the definition of "Watercourse" is found in the "Definitions" section of Chapter 14.20. Section 14.06.030 is, therefore, duplicative and no longer needed. 13- ? Page 8, Item I .J Meeting Date 7/19/94 Also, Chapter 14.18 "Wasting Water" is recommended to be repealed because the local water agencies have ordinances prohibiting the wasting of water and have enforcement personnel that are ready, willing, and able to enforce violations. Therefore, this Chapter of the Chula Vista Municipal Code is no longer necessary. FISCAL IMPACT: Fiscal impacts are unknown at this time because the extent of illicit connections and illegal discharges to the storm water conveyance system is not known. On June 11, 1991, the City Council enacted Ordinance 2463, which established a Storm Drain Fee and Fund to pay for the establishment and implementation of storm water management programs required by Order No. 90-42. This ordinance, and its enforcement, is one component of the City's storm water management program. Sufficient funds are available in the Storm Drain Revenue Fund to finance the enforcement of the proposed ordinance for at least one year. The General Fund will be reimbursed from the Storm Drain Fund at the full cost recovery rate for all staff activities associated with enforcement. Fines and other civil and criminal penalties will be imposed if deemed appropriate for the violation. Fines collected will be deposited in the Storm Drain Fund and will enable the City to lessen, but not eliminate, the need for future increases in the Storm Drain Fee. The NPDES storm water program is an unfunded federally mandated program that is anticipated to become even more costly for the City to implement in the near future as the Regional Water Quality Control Board adds more monitoring and control features to the permit. As the NPDES program continues to develop, we anticipate that the State's requirements will continue to increase. In 1991, the Engineering Division hired one Engineer using Storm Drain Fee revenues. This engineer is responsible for developing the programs required by Order No. 90-42. However, as the City's responsibilities increase under this program to possibly include increased enforcement of the proposed ordinance, additional permanent staff or more technical consultant services may be required. These increased costs are not likely to be offset by the imposition of penalties. In that instance, increases in the Storm Drain Fee will most likely be necessary. When sufficient information has been developed as to the extent of illicit connections and illegal discharges to the City's storm water conveyance system and the actual costs of enforcement, the Department of Public Works will provide the City Council with a follow-up report on the results of enforcement activities and of actual and future staff and funding requirements. This report will also include an estimate of revenues from fines and other penalties. Attachments: Table 1 - "Common Sources of Pollutants in Urban Areas" Table 2 - "Existing Regulations for Storm Water Pollution Control" KPAlKY-181 [F:\SHARED\ATIORNEY\CVSWM&DC.113] ):J-?" TABLE 1 COMMON SOURCES OF POLLUTANTS IN URBAN RUNOFF Urban Accidental Automobile! Housekeeping! Non-Storm Spills and Atmospheric Landscaping Industrial Construction Water Illegal Pollutant Deposit Practices Activities Activities Connections Dumping SEDIMENT X X X X NUlRIENTS X X X X X X BACTERIA AND X X X X VIRUSES OXYGEN X X X X X DEMANDING SUBSTANCES OlL AND GREASE X X X X X X Anti-Freeze X X X X X Hydraulic Fluids X X X X X X Cleaners and Solvents X X X X X HEAVY METALS X X X X X X Chromium X X X Copper X X X Lead X X X Zinc X X X Iron X X Cadmium X X Nickel X X Manganese X X Paint X X X X Wood Preservatives X X X X TOXIC MATERlALS Fuels X X X X X PCBs X X X Pesticides X X X X X X Herbicides X X X X X FLOATABLES X X X X References: Minnesota PCA (1989); Bennan, L. , et aI. (1991); Woodward-Clyde (1990); USEPA (1991); Schueler (1987); Beaton, 1., et. aI. (1972); and Oberts (1986). /3~9 TABLE 2 EXISTING REGULATIONS FOR STORM WATER POLLUTION CONTROL I REGULATION I ACTIVITY I POTENTIAL I General Plan Law Municipal development objectives Stann water management controls, (e.g., Adoption of Ordinances pollutant control, watershed protection) California Environmental Enviromnental review of projects Mitigation measures for reduction of Quality Act (CEQA) pollutants Subdivision Map Act Adoption of Ordinances Standards/Regulations for grading, erosion protection, detention! retention design, and dust control Flood Plain Management & Con1rol of velocity Control of erosion Drainage Ordinances Detention/retention Control of sediments, pollutants, and quantity Bank stabilization and outlet Erosion and Sediment controls controls Clean Water Act 401 and 404 Permits dredging and filling in Erosion control, sediment control, long-tenn Permits "Waters of the United States!! sediment balance & minimize pollutants Vegetative controls to preserve riparian areas Zoning Ordinances Cluster development Minimize runoff & impervious areas Hillside development Slope & erosion restriction. May include revegetation or stabilization. Landscape/Open space Vegetative BMPs, perimeter controls, reduction of runoff Sewer Use Ordinance Control of illicit connections Pollutant controls Uniform Building Code Chapter 70 - Excavating & Grading Minimize erosion & sedimentation Standaxds for stable cut & fill slopes Uniform Plumbing Code Prevention of illicit connections Pollutant con1rols Various chapters on materials & Pollutant controls their application/use Fire Code Storage of materials Pollutant con1rols Air Quality Management Plans Emission Sediment & dust controls 1601 and 1603 Stream Bed Alterations to creeks and stream Pollutant controls and prevent loss of habitat Alteration Agreements beds Coastal Zone Act Regulation of non-point pollution Pollutant controls to the ocean Chula Vista Sewer Ordinance Prevention of illicit connections Pollutant con1rols (Chula Vista Municipal Code Chapter 15.04) Chula Vista Grading Excavation and Grading Minimize erosion & sedimentation Ordinance (Chula Vista Standards for stable cut & fill slopes Municipal Code Chapter 15.04) Preserve natural environment/scenic character to the maximum extent economically feasible (Source: California Stormwater Best Management Practices Municipal Handbook) 1;'/0 ORDINANCE NO. .2 5"9? ORDINANCE OF THE CITY OF CHULA VISTA AMENDING SECTIONS 14.04.010, 14.06.010, 14.08.030, 14.08.090, 14.08.140, 14.08.170, 14.10.010, AND 14.14.010 OF THE CHULA VISTA MUNICIPAL CODE, REPEALING SECTION 14.06.030 OF THE CHULA VISTA MUNICIPAL CODE, REPEALING CHAPTER 14.18 OF THE CHULA VISTA MUNICIPAL CODE, AND ADDING CHAPTER 14.20 TO THE CHULA VISTA MUNICIPAL CODE REGARDING STORM WATER MANAGEMENT AND DISCHARGE CONTROL WHEREAS, the 1987 amendments to the Federal Water Pollution Control Act (Clean Water Act, 33 USCA Section 1251 et seq.) as implemented by the United States Environmental Protection Agency regulations adopted November 16, 1990, make necessary the adoption of plans and programs for storm water management; and, WHEREAS, Section 402 (P) of the Clean Water Act, as amended by the Water Quality Act of 1987, requires that all large-sized (population 250,000 and greater) and medium-sized (population of 100,000 to 249,999) incorporated municipalities must: (a) effectively prohibit non-storm water discharges into the storm water conveyance system; and, (b) establish controls to reduce the discharge of pollutants from storm water conveyance systems to waters of the United States to the maximum extent practicable; and, WHEREAS, the State of California Porter-Cologne Water Quality Control Act, as amended by the State Legislature in 1988, requires that there be a statewide program for control of the quality of the waters of the State and, further, requires that activities and factors which may affect the quality of the waters of the State be regulated in order to attain the highest reasonable water quality standard; and, WHEREAS, the United States Environmental Protection Agency regulations require permits for discharges from municipal storm water conveyance systems on a system-wide or jurisdiction-wide basis; and, WHEREAS, the California State Water Resources Control Board and the Regional Water Quality Control Board, San Diego Region, have determined that, in order to protect the waters of the United States, all jurisdictions within San Diego County, regardless of population, are tributary to a regional storm water conveyance system that serves an urbanized population greater than 250,000 and, therefore, must comply with the federal regulations for large-sized municipalities; and, 1 /J~ ../ WHEREAS, the City of Chula Vista seeks to comply with all provisions of state and federal law; and, WHEREAS, on July 16, 1990 the California Regional Water Quality Control Board, San Diego Region issued Order Number 90-42 (NPDES Permit No. CA 0108758) regulating storm water discharges by the City of Chula Vista and nineteen other municipal co-permittees; and, WHEREAS, in order to implement the federal regulatory requirements and Regional Water Quality Control Board, San Diego Region, Order Number 90-42 described above, the City of Chula Vista has entered into an Implementation Agreement dated February 19, 1991; and, WHEREAS, the implementation of pollutant control measures and storm water monitoring described in Order Number 90-42 in furtherance of these purposes is exempt from the provisions of the California Environmental Quality Act (CEQA); Chapter 3 (commencing with Section 21100) of Division 13 of the Public Resources Code as provided in Categorical Exemption Classes I, 4, 5, 6, 7, 8, 9, and/or 21 of the CEQA Guidelines (Title 14, California Code of Regulations Sections 15301-15329); and, WHEREAS, the City of Chula Vista has conducted a duly noticed public hearing on July 19, 1994 and has provided all interested parties an opportunity to be heard on these issues; and, WHEREAS, in order to comply with Federal and State law, it is necessary for the City of Chula Vista to adopt a Storm Water and Discharge Control Ordinance to reduce the discharge of pollutants to the storm water conveyance system to the maximum extent practicable for the protection of water resources within the City of Chula Vista and the protection of health, safety and general welfare of its citizens; NOW, THEREFORE, the City Council of the City of Chula Vista does hereby ordain: SECTION I. That Section 14.04.010 of the Chula Vista Municipal Code is amended to read: 14.04.010 Purpose and intent of provisions - More stringent regulations to control. It is the purpose of the city council in establishing the regulations codified in this èivi5isAtitle to protect persons and property against water damage and flood hazards by augmenting the regulations imposed by Chapter 19.50 of this code, establishing flood plain zoning controls. It is the intent of the council to afford greater seetlfÌtYDfotection for said persons and property from damage resulting from the obstruction or diversion of drainage ways and Wwatercourses. This title is also intended to protect Persons and property from damage resulting from-ef the 2 /.3A~J.. SECTION II. SECTION III. SECTION IV. construction of inadequate or improper facilities for ellffj'iflg the conveyance of surface watersrunoff and s.storm Wwaters to the city's Receivin~ Waters wlliell resIJIt ifl periods of storms, eatlsiflg 6¡eessi-'¡e ffifl6ff of -"aters tflf6IJgh tile .,.ari6IJS IIFll:Ìflage '¡lays Mil '{la!efe6IJrses ifl the eity. It is the further pUl:pose of the city council in establishine: the re~ulations codified in this title to protect and promote the health. safety. and ¡,>.eneral welfare of the citizens of the city by prohibiting: and preventine: the dischar~e of Non-Storm Water to the Storm Water Conveyance System and by reducing Pollutants in Storm Water dischaf!!es to the Maximum Extent Practicable in order to achieve applicable water quality obiectives for surface waters in San Die~o County. It is the intent of the council to protect and enhance the water quality of our Watercourses. water bodies. and Wetlands in a manner pursuant to and consistent with state and federal law_ In case of conflict between the regulations imposed by this 1Ii-'''¡siofltitle and any other provision of law or of this code, the more stringent regulation shall apply. That Section 14.06.010 of the Chula Vista Municipal Code is amended to read: 14.06.010 Definitions generally. Whenever the following words are used in this divisiofltitle they shall have the meaning ascribed to them in this chapter or Chapter 14.20. That Section 14.06.030 of the Chula Vista Municipal Code is repealed. That Section 14.08.030 of the Chula Vista Municipal Code is amended to read: 14.08.030 Issuance conditions - Liability. Watercourse Permits required by this lIi-'¡siefltitle shall be issued by the Ddirector, subject to such conditions as may be imposed pursuant to this lIivisiofltitle or as may be required by law. Neither the issuance of a permit, nor compliance with the conditions thereof or with the provisions of this divisiofltitle, shall relieve any person from any responsibility otherwise imposed by law for damage to persons or property, nor impose any liability on the city, its officers or employees for damage to £persons or property. 3 J.3/J ~ .1 SECTION VI. SECTION VII. SECTION VIII. 14.08.090 Requirements for other permits preserved. A permit issued pursuant to this diyisisAtitle does not relieve the permittee of the responsibility for securing the required permits for work to be done which is regulated by any other provision of this code, and city ordinance or state law. That Section 14.08.140 of the Chula Vista Municipal Code is amended to read: 14.08.140 Non-transferability. A permit issued pursuant to this cli.,.isieAtitle is not transferable from .eperson to .eperson or from property to property, for any reason or in any manner whatsoever. That Section 14.08.170 of the Chula Vista Municipal Code is amended to read: 14.08.170 Bond or instrument of credit - Conditions required. Every bond and instrument of credit shall include, and every cash deposit shall be made on, the conditions that the permittee shall: A. Comply with all applicable laws, ordinances and provisions of this code; B. Comply with all the terms and conditions of the permit, to the satisfaction of the Dåirector; and C. Complete all work contemplated under the permit within the time limit therein specified, or if no time limit is therein specified, then within the time limit specified in this cklÎsieAtitle. That Section 14.10.010 of the Chula Vista Municipal Code is amended to read: 14,10.010 Procedure for filing. Any .eperson aggrieved by the refusal of the Dclirector to grant a Watercourse Ppermit pursuant to this cli'¡isioAChapter 14.08 or by the imposition of a condition on such permit may appeal to the city council. The appeal shall be filed in duplicate, one copy with the Dåirector and one copy with the city clerk. The city clerk shall then set the appeal for 4 J:JA' tf The appeal shall be filed in duplicate, one copy with the Dáirector and one copy with the city clerk. The city clerk shall then set the appeal for public hearing in the manner provided in this code relating to appeals on zoning matters as contained in Title 19 of this code. SECTION IX. That Section 14.14.010 of the Chula Vista Municipal Code is amended to read: 14.14.010 Certain acts deemed nuisances. A violation of any provision of Section 14.08.010 or the failure of the owner of property over which there exists a Hatllml dmiHage cOllmeWatercourse to keep and maintain the portion of said åffiÏHage cOllrseWatercourse located on his property free of obstructions to the free flow of drainage water is hereby declared to constitute and be a public nuisance; provided however, that existing drainage facilities constructed prior to February 17, 1967, which have not decreased the capacity of the natural åraiHage eHaHHcl or Wwatercourse shall not be construed as a nuisance for purposes of this åi,i3iolltitle. SECTION X. That Chapter 14.18 of the Chula Vista Municipal Code is repealed. SECTION XI. That Chapter 14.20, entitled "Storm Water Management and Discharge Control", is hereby added to Title 14 of the Chula Vista Municipal Code to read as follows: CHAPTER 14.20 STORM WATER MANAGEMENT AND DISCHARGE CONTROL 14.20.010 Purpose and Intent, The purpose of this Chapter is to promote the health, safety, and general welfare of the citizens of the City of Chula Vista by: A. Prohibiting Non-Storm Water discharges to the Storm Water Conveyance System. B. Preventing discharges to the Storm Water Conveyance System from spills, dumping or disposal of materials other than Storm Water. 5 ,... 13/1''> The intent of this ordinance is to protect and enhance the water quality of our Watercourses, water bodies, and Wetlands in a manner pursuant to and consistent with the Clean Water Act (33 USCA Section 1251 et seq.) and its implementing regulations, the Porter- Cologne Water Quality Control Act (California Water Code 13020 et seq.) and its implementing regulations, and the San Diego Regional Water Quality Control Board Order Number 90-42 (NPDES Permit Number CA 0108758) and any subsequent amendments thereto. 14.20.020 Scope. This Chapter shall be interpreted in accordance with the definitions set forth herein and the provisions of this ordinance shall apply to the direct or indirect discharge of pollutants into the City's Storm Water Conveyance System. Further, this Chapter shall be interpreted in accordance with the requirements of the federal Clean Water Act and acts amendatory thereof or supplementary thereto, applicable implementing regulations, Order Number 90-42 and any amendment, revision, or reissuance thereof, and the purposes and intent of this Chapter. This Chapter, among other things, provides for the prohibition of Non-Storm Water discharges to the Storm Water Conveyance System, the prohibition of Illicit Connections to the Storm Water Conveyance System, the requirement that all Persons reduce the volume and character of Pollutants related to urban activity entering the Storm Water Conveyance System to the Maximum Extent Practicable, and the establishment of enforcement mechanisms for violation of this Chapter, including civil and criminal fines and penalties. 14.20.030 Definitions. When used in this Chapter, the following terms shall have the meanings ascribed to them in this Section: A. "Basin Plan" shall mean the "Comprehensive Water Quality Control Plan for the San Diego Basin" adopted by the Regional Water Quality Control Board, San Diego Region (July 1975) and approved by the State Water Resources Control Board, together with subsequent amendments. B. "Best Management Practices (BMPs)" shall mean schedules of activities, prohibitions of practices, general good housekeeping practices, pollution prevention and educational practices, maintenance procedures, and other management practices to prevent or reduce to the Maximum Extent Practicable, the discharge of Pollutants directly or indirectly to Waters of the United States. BMPs also include treatment requirements, operating procedures, and practices to control plant site runoff, spillage or leaks, sludge or waste disposal, or drainage from raw materials storage. 6 I:JA ..¿, C. "Building Permit" shall mean a permit issued by the Director of Building and Housing pursuant to Chapter 15.20. D. "California Ocean Plan" shall mean the "California Ocean Plan: Water Quality Control Plan for Ocean Waters of California" adopted by the State Water Resources Control Board in September 1991, and any subsequent amendments. E. "Clean Water Act" shall mean the Federal Water Pollution Control Act enacted by Public Law 92-500, as amended by Public Laws 95-217,95-576,96-483, and 95-117 (33 USCA Section 1251 et seq.), and any subsequent amendments. F. "County Health Officer" shall mean the Health Officer of the County of San Diego Department of Public Health or designee. G. "Development" shall mean: 1. The placement or erection of any solid material or structure on land, in water, or under water; 2. The discharge or disposal of any dredged material or of any gaseous, liquid, solid, or thermal waste; 3. The grading, removing, dredging, mining, or extraction of any materials; 4. A change in the density or intensity of the use of land, including, but not limited to, a subdivision pursuant to the Subdivision Map Act (Government Code Section 66410, et seq.) and any other division of land, except where the division of land is brought about in connection with the purchase of such land by a public agency for public recreational use; 5. A change in the intensity of the use of water, or of access thereto; 6. The construction, reconstruction, demolition, or alteration of the size of any structure, including any facility of any private, public, or municipal entity; and, 7. The removal or harvesting of major vegetation other than for agricultural purposes. As used in this definition, "structure" includes, but is not limited to, any building, road, pipe, flume, conduit, siphon, aqueduct, telephone line, and electrical power transmission and distribution line. (Source: Government Code Section 65927) H. "Employee Training Program" shall mean a documented Employee Training Program for all Persons responsible for implementing a Storm Water Pollution Prevention Plan. The Employee Training Program shall include, but is not limited to, the following topics: 1. Laws, regulations, and local ordinances associated with Storm Water pollution prevention, and an overview of the potential impacts of polluted Storm Water on the Receiving Waters of the San Diego region. 2. Proper handling of all materials and wastes to prevent spillage. 7 I:J/I"? 3. Mitigation of spills including spill response, containment and cleanup procedures. 4. Visual monitoring of all effluent streams to ensure that no Illegal Discharges enter the Storm Water Conveyance System. 5. Discussion of the differences between the Storm Water Conveyance System and the sanitary sewer system. 6. Identification of all on-site connections to the Storm Water Conveyance System. 7. Preventive maintenance and good housekeeping procedures. 8. Material management practices employed by the facility to reduce or eliminate Pollutant contact with Storm Water discharge. 1. "Enforcement Agency" shall mean the City of Chula Vista or its authorized agents charged with ensuring compliance with this Chapter. J. "Enforcement Official" shall mean the Director of Public Works or his or her designee. K. "Hazardous Materials" shall mean any substance or mixture of substances which is toxic, corrosive, flammable, an irritant, a strong sensitizer, or generates pressure through decomposition, heat or other means, if such a substance or mixture of substances may cause substantial injury, serious illness or harm to humans, domestic livestock, or wildlife. L. "Illicit Connection" shall mean any un-permitted or undocumented physical connection to the Storm Water Conveyance System which has not been approved by the City of Chula Vista, or which drains Illegal Discharges either directly or indirectly into the Storm Water Conveyance System. M. "Illegal Discharge" shall mean any non-permitted or non-exempt discharge to the Storm Water Conveyance System that is not composed entirely of Storm Water, or is expressly prohibited by federal, state, or local regulations, laws, codes, or ordinances, or degrades the quality of Receiving Waters in violation of Basin Plan or California Ocean Plan standards. N. "Land Development Permit" shall mean a permit issued by the Director of Public Works pursuant to Chapter 15.04 of the Chula Vista Municipal Code. O. "Maximum Extent Practicable" shall mean, with respect to Best Management Practices (BMPs), an individual BMP or group of BMPs which address a Pollutant of concern, which have a cost of implementation reasonably related to the pollution control benefits achieved, and which are technologically feasible. P. "National Pollution Discharge Elimination System (NPDES) Permit" shall mean a permit issued by the Regional Water Quality Control Board or the State Water Resources Control Board pursuant to Chapter 5.5, Division 7 of the California Water Code, to 8 /..3/1-8' control discharges from point sources to Waters of the United States, including, but not limited to: 1. California Regional Water Quality Control Board, San Diego Region, Order No. 90-42 (NPDES No. CA 0108758) NPDES Municipal Permit -- Waste Discharge Requirements for Storm Water and Urban Runoff from the County of San Diego, the Incorporated Cities of San Diego County, and the San Diego Unified Port District; 2. NPDES General Permit for Storm Water Discharges Associated with Industrial Activities; 3. NPDES General Permit for Storm Water Discharges Associated with Construction Activity; and, 4. California Regional Water Quality Control Board, San Diego Region, General De-Watering Permits (Order Numbers 91-10 and 90-31). Q. "NPDES General Permit" shall mean a permit issued by the State Water Resources Control Board, including, but not limited to: 1. NPDES General Permit for Storm Water Discharges Associated with Industrial Activities; and, 2. NPDES General Permit for Storm Water Discharges Associated with Construction Activity. R. "Non-Storm Water" shall mean any water conveyed to the Storm Water Conveyance System that is not entirely composed of Storm Water (also see definition of "Storm Water"). S. "Order Number 90-42", dated July 16, 1990, shall mean San Diego Regional Water Quality Control Board Order Number 90-42, which constitutes NPDES Permit Number CA0108758, together with all amendments, and which is on file in the office of the City Clerk as Document Number C090-287. T. "Parking Lot" shall mean an open area, other than a street or other public way, used for the parking of motorized vehicles, whether for a fee or free, to accommodate clients or customers or to accommodate residents of multi-family dwellings (i.e., apartments, condominiums, townhomes, mobile homes, dormitories, group quarters, etc.). U. "Person" shall mean any individual, organization, business trust, company, partnership, entity, firm, association, corporation, or public agency, including the State of California and the United States of America. v. "Pollutant" may include but is not limited to solid waste, sewage, garbage, medical waste, wrecked or discarded equipment, radioactive materials, dredged spoil, rock, sand, sediment, industrial waste, and any organic or inorganic contaminant whose presence 9 /J/9-t:¡ degrades the quality of the Receiving Waters in violation of Basin Plan or California Ocean Plan standards. "Pollutant" includes, but is not limited to, fecal coliform, fecal streptococcus, enterococcus, volatile organic carbon (VOC), surfactants, oil and grease, petroleum hydrocarbons, total organic carbon (TOC), lead, copper, chromium, cadmium, silver, nickel, zinc, cyanides, phenols, and biocides. A "Pollutant" also includes any substance defined as a Pollutant under 40 CFR Section 122.2 and any contaminant which degrades the quality of the Receiving Waters in violation of Basin Plan or California Ocean Plan standards by altering any of the following parameters: pH, total suspended and settleable solids, biochemical oxygen demand (BOD), chemical oxygen demand (COD), nutrients, and temperature. W. "Premises" shall mean any building, lot, parcel, real estate, land, or portion of land whether improved or unimproved. X. "Receiving Waters" shall mean surface bodies of water, as described in Order Number 90-42, which serve as discharge points for the Storm Water Conveyance System, including creeks, rivers, reservoirs, lakes, lagoons, estuaries, harbors, bays, and the Pacific Ocean. Y. "Significant Quantities" shall mean the volume, concentrations, or mass of a Pollutant in a discharge that can cause or threaten to cause pollution, contamination, or nuisance; or adversely impact human health or the environment; or, cause or contribute to a violation of any water quality standards applicable to the Receiving Water. Z. "Storm Water" shall mean surface runoff and drainage associated with storm events and snow melt prior to contact with urban areas, agricultural areas, and/or other areas in which the natural environment has been significantly disturbed or altered, either directly or indirectly, as a result of human activity (also see definition for "Non-Storm Water"). For the purposes of this Chapter, Storm Water runoff and drainage from areas that are in a natural state, have not been significantly disturbed or -altered, either directly or indirectly, as a result of human activity, and the character and type of Pollutants naturally appearing in the runoff have not been significantly altered, either directly or indirectly, as a result of human activity, shall be considered "unpolluted" and shall satisfy the definition of "Storm Water" in this Chapter. AA. "Storm Water Conveyance System" includes, but is not limited to, those municipal facilities within the City of Chula Vista by which Storm Water may be conveyed to Waters of the United States, including any roads with drainage systems, municipal streets, catch basins, and Watercourses. BE. "Storm Water Pollution Prevention Plan" shall mean a document which describes the on- site program activities to utilize Best Management Practices by the owner or operator of 10 /3;9 -j¿J a business to eliminate or reduce Pollutant discharges to the Storm Water Conveyance System to the Maximum Extent Practicable. A Storm Water Pollution Prevention Plan prepared and implemented pursuant to any NPDES Permit shall meet the definition of a Storm Water Pollution Prevention Plan for the purposes of this Chapter. CC. "Watercourse" shall mean any natural or artificial stream, river, creek, ditch, channel, canal, conduit, culvert, drain, waterway, gully, ravine, arroyo or wash, in which waters flow in a definite direction or course, either continuously or intermittently, and which has a definite channel and a bed or banks. A channel is not limited to land covered by minimal or ordinary flow but also includes land covered during times of high water. "Watercourse" does not include any surface drainage prior to its collection in a stream, river, creek, ditch, channel, canal, conduit, culvert, drain, waterway, gully, ravine, arroyo or wash. DD. "Watercourse Permit" shall mean a permit issued by the Director of Public Works pursuant to Chapter 14.08 of the Chula Vista Municipal Code. EE. "Wetlands" shall mean areas that are inundated or saturated by surface or ground waters at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. 14.20,040 Administration. The Enforcement Official shall administer, implement, and enforce the provisions of this Chapter. Any powers granted to, or duties imposed upon, the Enforcement Official may be delegated by the Enforcement Official to Persons in the employ of the City, or pursuant to contract. When deemed necessary by the Enforcement Official, the Enforcement Official shall prepare and present to the City Council for approval regulations consistent with the general policies established herein by the City Council. The Enforcement Official shall enforce Council approved regulations necessary to the administration of this ordinance, and may recommend that the Council amend such regulations from time to time as conditions require. 14,20.100 Discharge of Non-Storm Water Prohibited. It is unlawful for any Person to discharge Non-Storm Water into the Storm Water Conveyance System, except as provided in Section 14.20.110. 14.20.110 Exemptions to Discharge Prohibition. II IJ/I"// '..,/ The following discharges are exempt from the prohibition set forth in Section 14.20.100, provided that they do not cause or significantly contribute to violations of the water quality standards set forth in the Basin Plan or the California Ocean Plan, or convey Significant Quantities of Pollutants to Receiving Waters, or are a danger to public health and safety: A. Any discharge or connection regulated under a NPDES Permit issued to the discharger and administered by the State of California pursuant to Chapter 5.5, Division 7 of the California Water Code, provided that the discharger is in compliance with all requirements of the permit and other applicable laws and regulations. B. Discharges from the following activities will not be considered a source of Pollutants to Waters of the United States: 1. Discharges composed entirely of Storm Water. 2. Water line flushing and other discharges from potable water sources. 3. Landscape irrigation and lawn watering. 4. Irrigation water. 5. Diverted stream flows. 6. Rising ground waters. 7. Groundwater infiltration to the Storm Water Conveyance System. 8. Uncontaminated pumped ground water not subject to any applicable NPDES or State Water Resources Control Board permit. 9. Passive foundation and footing drains (not including active groundwater dewatering systems). 10. Water from crawl space pumps. 11. Air conditioning condensation. 12. Springs. 13. Non-commercial washing of vehicles. 14. Flows from riparian habitats and Wetlands. 15. Dechlorinated swimming pool discharges. 16. Flows from fire fighting activities. 17. Street wash waters related to cleaning and maintenance by the City of Chula Vista or its contractor for said services. 18. Waters not otherwise containing wastes as defined in California Water Code Section 13050(d) and California Health and Safety Code Section 25117. C. Any discharge which the Enforcement Agency, the County Health Officer, and/or the Regional Water Quality Control Board determines in writing is necessary for the protection of the public health and safety. 14.20.120 Reduction of Pollutants Contacting or Entering Storm Water Required. 12 J3A-/~ A. It is unlawful for any Person not to utilize Best Management Practices to the Maximum Extent Practicable to eliminate or reduce Pollutants entering the City's Storm Water Conveyance System. B. In order to reduce the risk of Non-Storm Water or Pollutant discharges to the City's Storm Water Conveyance System, the following minimum Best Management Practices shall be implemented: 1. Commercial and Industrial Business-Related Activities. a. Storm Water Pollution Prevention Plan: When the Enforcement Official determines that a business or business-related activity causes or significantly contributes to violation of the water quality standards set forth in the Basin Plan or California Ocean Waters Plan, or conveys Significant Quantities of Pollutants to Receiving Waters, then the Enforcement Official may require the business to develop and implement a Storm Water Pollution Prevention Plan (SWPPP). Businesses which may be required to prepare and implement a SWPPP include, but are not limited to, those which perform maintenance, storage, manufacturing, assembly, equipment operations, vehicle loading, and/or cleanup activities partially or wholly out of doors. b. Coordination with Hazardous Materials Response Plans and Inventory: Any business subject to the Hazardous Materials inventory and response program pursuant to Chapter 6.95 of the California Health and Safety Code, shall include provisions for compliance with this Chapter in its Hazardous Materials Response Plan, including prohibitions of unlawful Non-Storm Water discharges and Illegal Discharges, and provisions requiring the use of Best Management Practices to reduce the discharge of Pollutants in Storm Water. c. Impervious Surfaces: Persons owning or operating a Parking Lot or an impervious surface (including, but not limited to, service station pavements or paved private streets and roads) used for automobile-related or similar purposes shall clean those surfaces as frequently and as thoroughly as is necessary, in accordance with Best Management Practices, to prevent the discharge of Pollutants to the City's Storm Water Conveyance System. Sweepings or cleaning residue from Parking Lots or impervious surfaces shall not be swept or otherwise made or allowed to go into any Storm Water conveyance, gutter, or roadway, but must be disposed of in accordance with regional solid waste procedures and practices. 2. Activities not Otherwise Regulated by Subsection B.!. 13 /3~'J3 Any Person engaged in Development or other activity not covered by Subsection A in the City of Chula Vista shall utilize Best Management Practices to prevent Pollutants from entering the Storm Water Conveyance System by complying with all applicable local ordinances, the Standard Specifications for Public Works Construction when performing public work, and applicable provisions of the NPDES General Permit for Storm Water Discharges Associated with Construction Activity issued by the State Water Resources Control Board (State Board Order No. 92-08-DWQ), and any subsequent amendments. 14.20.130 Containment, Cleanup, and Notification of Spills. It is unlawful for any Person owning or occupying any Premises who has knowledge of any release of Significant Quantities of materials, Pollutants, or waste which may result in Pollutants or Non-Storm Water discharges entering the City's Storm Water Conveyance System to not immediately take all reasonable action to contain, minimize, and clean up such release. Such Person shall notify the City of Chula Vista of the occurrence and/or County of San Diego Department of Health Services/Environmental Health Services Hazardous Materials Management Division, and any other appropriate agency of the occurrence as soon as possible, but no later than 24 hours from the time of the incident's occurrence. 14.20.140 Watercourse Protection, In addition to the prohibitions relating to Watercourses and the requirements for Watercourse Permits set forth in Chapter 14.08, it is unlawful for any Person owning and/or occupying property through which a Watercourse passes to fail or refuse to: A. Keep and maintain that part of the Watercourse within the property free of trash, debris, and other obstacles which would pollute, contaminate, or significantly retard the flow of water through the Watercourse. B. Maintain existing privately owned structures within or adjacent to a Watercourse so that such structures will not become a hazard to the use, function, or physical integrity of the Watercourse. C. Keep and maintain healthy bank vegetation in such as a manner as to minimize the vulnerability of the Watercourse to erosion. 14.20.150 Development In or Adjacent to Watercourse Restricted - Land Development, Building, or Watercourse Permit Required. No Person shall carry out Development within thirty feet of the center line of any Watercourse or within twenty feet of the edge of any Watercourse, whichever is the greater distance from the top of the creek bank, unless a Land Development, Building, or Watercourse Permit has first been obtained. The City Officer issuing said permit is hereby granted the 14 /3/7 ~/r authority to establish controls on the volume and rate of Storm Water runoff from such new Development as may be reasonable and appropriate to minimize the discharge and transport of Pollutants to the Maximum Extent Practicable in the granting or conditioning the granting of such permit. 14.20.200 Inspection and Sampling - General. A. After obtaining legal entry to any Premises in accordance with Section 1.16.010 of this Code, the representative of the Enforcement Agency shall have the right to: 1. Carry out any inspection and sampling activities on the Premises as may be necessary to enforce the provisions and requirements of this Chapter. Upon request, split samples shall be given to the owner and/or occupant of the Premises. 2. Inspect any vehicle on the Premises reasonably suspected of causing, contributing to, or being used to transport an Illegal Discharge to the Storm Water Conveyance System. 3. Conduct tests, analyses and evaluations to determine if a discharge of Storm Water is an Illegal Discharge or to determine if the requirements of this Chapter have been met. 4. Photograph any effluent stream, material or waste, material or waste container, container label, vehicle, waste treatment process, waste disposal site, or condition contributing to Storm Water pollution and constituting a violation of this Chapter found during an inspection. 5. Inspect and copy pertinent records relating to the facility's operations, including inventories, chemical usage, materials, sources, Hazardous Materials manifests and disposal records, treatment and operations log books, and materials invoices. 6. Review and obtain a copy of the Storm Water Pollution Prevention Plan prepared by the owner and/or occupant or facility operator, if such a plan is required. 7. Require the owner and/or occupant or facility operator to retain evidence, as instructed by the inspector, for a period not to exceed 30 days. 8. Review and obtain copies of all Storm Water monitoring data compiled by the owner and/or occupant or facility operator, if such monitoring is required. 9. Review and obtain copies of all records related to handling of Pollutants and Hazardous Materials. 15 .,,- 13/9 "/;> B. The Enforcement Official may conduct routine or area inspections, which shall be based upon such reasonable selection processes as may be deemed necessary to carry out the objectives of this Chapter, including, but not limited to random sampling or sampling in areas with evidence of Storm Water contamination, Illegal Discharges, discharge of Non- Storm Water to the Storm Water Conveyance System, or similar factors. C. All Enforcement Officials shall have adequate identification. Enforcement Officials and other authorized personnel shall identify themselves when entering any property for inspection purposes or when inspecting the work of any contractor. 14,20,210 Inspection Procedures - Additional Requirements. During the inspection, the Enforcement Official shall comply with all reasonable security, safety, and sanitation measures. In addition, the Enforcement Official shall comply with reasonable precautionary measures specified by the owner and/or occupant or facility operator. At the conclusion of the inspection, and prior to leaving the site, the Enforcement Official shall make every reasonable effort to review with the owner and/or occupant or the facility operator each of the violations noted by the Enforcement Official and any corrective actions that may be necessary. A report listing any violation found by the Enforcement Official during the inspection shall be kept on file by the Enforcement Agency. A copy of the report shall be provided to the owner and/or occupant or facility operator, or left at the Premises if no Person is available. If corrective action is required, then the occupant, facility owner, and/or facility operator shall implement a plan of corrective action based upon a written plan of correction, submitted to the Enforcement Agency, which states the corrective actions to be taken and the expected dates of completion. Failure to implement a plan of correction constitutes a violation of this Chapter. 14.20.220 Authority to Sample and Establish Sampling Devices, With the consent of the property owner or occupant or pursuant to a search warrant, the Enforcement Official is authorized to establish on any property that discharges directly or indirectly to the municipal Storm Water Conveyance System such devices as are necessary to conduct sampling or metering operations. During all inspections as provided herein, the official may take samples of materials, wastes, and/or effluent as deemed necessary to aid in the pursuit of the inquiry or in the recordation of the activities onsite. 14.20.230 Testing, Monitoring or Mitigation Required - When. A. The Enforcement Official may require that any Person engaged in any activity and/or owning or operating any facility which causes or contributes to Storm Water pollution or contamination, Illegal Discharges, and/or discharge of Non-Storm Water to the Storm Water Conveyance System perform monitoring, including physical and chemical 16 13/1 */¿. monitoring and/or analyses and furnish reports as the Enforcement Official may specify if; 1. The Person, or facility owner or operator, fails to eliminate Illegal Discharges within a specified time after receiving a written notice to do so by the Enforcement Official. 2. The Enforcement Official has documented repeated violations of this Chapter by the Person or facility owner or operator which has caused or contributed to Storm Water pollution. It is unlawful for such Person or facility owner or operator to fail or refuse to undertake and provide the monitoring, analyses, and/or reports specified. Specific monitoring criteria shall bear a relationship to the types of Pollutants which may be generated by the Person's activities or the facility's operations. If the Enforcement Agency has evidence that a Pollutant is originating from a specific Premises, then the Enforcement Agency may require monitoring for that Pollutant regardless of whether said Pollutant may be generated by routine activities or operations. The Person or facility owner or operator shall be responsible for all costs of these activities, analyses and reports. B. Any Persons required to monitor pursuant to Paragraph A, above, shall implement a Storm Water monitoring program including, but not limited to, the following: 1. Routine visual monitoring for dry weather flows. 2. Routine visual monitoring for spills which may pollute Storm Water runoff. 3. A monitoring log including monitoring date, potential pollution sources, as noted in I and 2, and a description of the mitigation measures taken to eliminate any potential pollution sources. C. The Enforcement Official may require a Person, or facility owner or operator, to install or implement Storm Water pollution reduction or control measures, including but not limited to, process modification to reduce the generation of Pollutants or a pretreatment program approved by the Regional Water Quality Control Board and/or the City of Chula Vista if: 1. The Person, or facility owner or operator, fails to eliminate Illegal Discharges after receiving a written notice from the Enforcement Official. 2. The Person, or facility owner or operator, fails to implement a Storm Water Pollution Prevention Plan, as required by the Enforcement Official. 3. The Enforcement Official has documented repeated violations of this Chapter any such Person or facility owner or operator which has caused or contributed to Storm Water pollution. 17 JJ~"/7 D. If testing, monitoring or mitigation required pursuant to this Chapter are deemed no longer necessary by the Enforcement Official, then any or all of the requirements contained in Paragraphs A, B, and C may be discontinued. E. A Storm Water monitoring program prepared and implemented pursuant to any State- issued NPDES General Permit shall be deemed to meet the requirements of a monitoring program for the purposes of this Chapter. 14.620.300 Concealment. Causing, permitting, aiding, abetting or concealing a violation of any provision of this Chapter is unlawful and shall constitute a separate violation of this Chapter. 14.20.310 Administrative Enforcement Powers. The Enforcement Agency and Enforcement Official can exercise any enforcement powers as provided in Title I of this Code. In addition to the general enforcement powers provided in Title I of this Code, the Enforcement Agency and Enforcement Official have the authority to utilize the following administrative remedies as may be necessary to enforce this Chapter: A. Cease and Desist Orders. When the Enforcement Official finds that a discharge has taken place or is likely to take place in violation of this Chapter, the Enforcement Official may issue an order to cease and desist such discharge, practice, or operation likely to cause such discharge and direct that those Persons not complying shall: 1. Comply with the applicable provisions and policies of this Chapter. 2. Comply with a time schedule for compliance. 3. Take appropriate remedial or preventive action to prevent the violation from recurrmg. B. Notice to Clean and Abate. Whenever the Enforcement Official finds any oil, earth, dirt, grass, weeds, dead trees, tin cans, rubbish, refuse, waste or any other material of any kind, in or upon the sidewalk abutting or adjoining any parcel of land, or upon any parcel of land or grounds, which may result in an increase in Pollutants entering the City's Storm Water Conveyance System or a Non-Storm Water discharge to the City's Storm Water Conveyance System, the Enforcement Official may issue orders and give written notice to remove same in any reasonable manner. The recipient of such notice shall undertake the activities as described in the notice. C. Storm Water Pollution Prevention Plan. 18 J3/1-/Y The Enforcement Official shall have the authority to establish elements of a Storm Water Pollution Prevention Plan, and to require any owner or occupier of any Premises to adopt and implement such a plan pursuant to Section 14.20.120.B.1.a., as may be reasonably necessary to fulfill the purposes of this Chapter. D. Employee Training Program. The Enforcement Official shall have the authority to establish elements of an Employee Training Program, as may be necessary to fulfill the purposes of this Chapter, where such a Program has been required as an element of a Storm Water Pollution Prevention Plan. E. Civil Penalties. Any Person who violates any of the provisions of this Chapter or who fails to implement a Storm Water monitoring plan, violates any cease and desist order or Notice to Clean and Abate, or fails to adopt or implement a Storm Water Pollution Prevention Plan as directed by the Enforcement Official shall be liable for a civil penalty not to exceed $1,000 for each day such a violation exists. The violator shall be charged for the full costs of any investigation, inspection, or monitoring survey which led to the detection of any such violation, for abatement costs, and for the reasonable costs of preparing and bringing legal action under this subsection. In addition to any other applicable procedures, the Enforcement Agency may utilize the lien procedures of Chapter 1.30 to enforce the violator's liability. The violator may also be liable for compensatory damages for impairment, loss or destruction to water quality, wildlife, fish and aquatic life. 14.20.320 Administrative Notice, Hearing, and Appeal Procedures. Administrative notice, hearing, and appeal procedures shall be as specified in Section 13.06.110, except all references to "Title" shall mean "Chapter 14.20", references to "sewer" shall be interpreted as "Storm Water Conveyance System", and methods of administrative enforcement shall mean any and all remedies available to the Enforcement Official under Section 14.20.310. 14.20.330 Judicial Enforcement. A. Criminal Penalties. Notwithstanding Section 1.20.010, any Person who violates any provision of this Chapter or who fails to implement a Storm Water monitoring plan, violates any cease and desist order or Notice to Clean and Abate, or fails to adopt or implement a Storm Water Pollution Prevention Plan as directed by the Enforcement Official shall be punished, upon conviction, by a fine not to exceed $10,000 for each day in which such violation occurs, 19 )J/7~ 11 or imprisonment in the San Diego County jail for a period not to exceed one (1) year, or both. B. Injunction/Abatement of Public Nuisance. Whenever a discharge into the Storm Water Conveyance System is in violation of the provisions of this Chapter or otherwise threatens to cause a condition of contamination, pollution, or nuisance, the Enforcement Official may also cause the City to seek a petition to the Superior Court for the issuance of a preliminary or permanent injunction, or both, or an action to abate a public nuisance, as may be appropriate in restraining the continuance of such discharge. C. Other Civil Action. Whenever a Notice and Order or Hearing Officer's decision is not complied with, the City Attorney may, at the request of the Enforcement Official, initiate any appropriate civil action in a court of competent jurisdiction to enforce such Notice and Order and decision, including the recovery of any unpaid Storm Drain Fees and/or civil penalties provided herein. 14.20.340 Violations Deemed a Public Nuisance, In addition to the other civil and criminal penalties provided herein, any condition caused or permitted to exist in violation of any of the provisions of this Chapter is a threat to the public health, safety, and welfare and is declared and deemed a public nuisance, which may be summarily abated and/or restored as directed by the Enforcement Official in accordance with the procedures identified in Chapter 1.30. A civil action to abate, enjoin or otherwise compel the cessation of such nuisance may also be taken by the City, if necessary. The full cost of such abatement and restoration shall be borne by the owner of the property and the cost thereof shall be a lien upon and against the property in accordance with the procedures set forth in Chapter 1.30. 14,20,350 Remedies Not Exclusive. Remedies set forth in this Chapter are not exclusive but are cumulative to all other civil and criminal penalties provided by law, including, but not limited to, penalty provisions of the Federal Clean Water Act and/or the State Porter-Cologne Water Quality Control Act. The seeking of such federal and/or state remedies shall not preclude the simultaneous commencement of proceedings pursuant to this Chapter. 14,20.360 Civil Penalties to be Deposited in the Stonn Drain Revenue Fund, 20 J3/j"~o Any civil penalties collected by the City as a result of violations of this Chapter shall be deposited in the Storm Drain Revenue Fund. SECTION XII. This ordinance shall take effect and be in full force on the thirtieth day from and after its adoption. Submitted by Approved as to form by John P. Lippitt Director of Public Works ?;II 21 13/9",;( / COUNCIL AGENDA STATEMENT Item IY Meeting Date 7/19/94 ITEM TITLE: SUBMITTED BY: Public hearing to consider testimony on the establishment of Zone 8 in Open Space District 20 for Rancho Del Rey Development for the perpetual maintenance of a desilting basin Director of Public wor~ ~ ~ City ManagerJi ~~\ (4/5ths Vote: Yes_No X ) REVIEWED BY: A desilting basin was built by McMillin Development in City open space off-site of Rancho del Rey land to trap silt which washed down from the upstream development. After maintenance by McMillin for 5 years, the City will have to maintain the basin. Formation of Zone 8 within Open Space District 20 will provide financing for this maintenance. RECOMMENDATION: That Council open and close the first public hearing to consider testimony on the establishment of Zone 8 in Open Space District 20, for Rancho Del Rey Development for the perpetual maintenance of a desilting basin. The second public hearing is scheduled for July 26, 1994. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: Back!!round Pursuant to Article 4, Chapter 1, Part 2 of Division 15 of the California Streets and Highways Code, and the City of Chula Vista Municipal Code, the City Engineer has prepared and filed this report. The report includes a new zone for assessing properties, within Rancho del Rey development, tributary to a newly constructed desilting basin located at the downstream end of the Bonita drainage basin to pay for its maintenance and maintenance of an access road for hauling silt cleaned from the basin. Establishing a zone for maintenance of the basin is consistent with Council Policy which states that naturalized channel costs may be recovered through an open space district. The heavy rains of the winter of 1992-1993 carried silt from the newly graded Rancho del Rey, Spa II subdivision and deposited silt into the downstream pipes at Bonita Road and the Willow Street bridge area. The builder and owner of the properties, Rancho del Rey Investors, agreed to construct an access road as well as a desilting basin to forestall future problems. Pursuant to our policy, McMillin Development Company is responsible for maintaining the basin for 5 years following completion of the grading. Staff anticipates that the basin will be turned over for maintenance in July 1999. Subsequent to that date the City will maintain the basin using the funds collected through the Open Space District 20, Zone 8. /'1- / Page 2, Item 1,/ Meeting Date 7/19/94 Boundarv Staff proposes that a zone within Open Space District 20 be established to assess the properties tributary to this desilting basin (See Figure 1). All property within this zone is presently owned by Rancho Del Rey Investors or one of their guest builders. Maintenance and Costs The anticipated maintenance items are debris and silt removal from the desilting basin and maintenance of the access road. This maintenance will be necessary to ensure that there will not be excessive build-up of silt which would subsequently reduce the needed capacity of the basin and thus could cause siltation downstream. The design engineer, Group Delta Consultants, estimated that the basin can accumulate 428 cubic yards of sediment before cleaning is required (See Attachment B). The design engineer has estimated that the annual sediment yield into the basin after the five year maintenance period will be 200 cubic yards. This will allow for a two year cleaning interval. The maintenance road will provide access from the south and is to be constructed of a 6 inch section of decomposed granite. The road will need to be regraded twice a year and replaced every 8 years. The estimated cost of this maintenance is indicated in Table 1. UÞm. (1) Cost l,.OS~ Regrade access road (twice a year) $500 $1,000 Replace access road (once every 8 years) $11 ,000 $1,375 Debris and silt removal (once every 2 years) $2,500 $1,250 Subtotal $14,000 $3,625 Total Yearly Assessment $3,625 1 Public Works - eratlOns will be res onslble for this work TABLE 1 ESTIMATE OF ANNUAL MAINTENANCE COSTS FOR OSD-20, ZONE 8 ( ) Op p Methodolo!!v The methodology for spreading Zone 8' s cost is based on the amount of storm water runoff anticipated for the various land uses on an acreage basis. Only those parcels which are tributary to the desilting basin are proposed to be charged. Table 2 summarizes the factors used to determine the spread which is consistent with the methodology used for Zone 1, East H Street desilting basin within this district. The calculation is based on one (1) dwelling unit per acre (DUlAC) at $35.18 per year. Other yearly rates are multiples of the spread factor times the $35.18 per year assessment (see Table 2). A typical annual assessment is $35.18. There are 546 parcels in the zone with spread factors ranging from .33 to 1 depending on the parcel density. Ir~:L Page 3, Item /1 Meeting Date 7/19/94 TABLE 2 Single family detached 0-2 0.6 1.00 $35.18 2-4 0.6 0.33 11.62 4-6 0.6 0.20 N/A 8-10 0.6 0.14 N/A 1O-l2 0.7 0.10 N/A 12-20 0.7 0.07 20+ 0.8 0.05 N/A 0.9 1.50/ac N/A 0.8 I. 33/ac N/A 0.7 1.l7/ac N/A Single family attached Multiple family attached Employment park Commercial Church The above assessments are based on the projected total annual assessment of $3,625. Assessment The proposed assessment for Zone 8, Fiscal Year 1994-1995 is $OIEDU as the developer must maintain the basin for the first five years. The ultimate assessment is projected to be $35.18 per typical dwelling unit. Notice The public hearings have been noticed pursuant to Government Code 6063 which requires that notice be published at least once a week for three weeks 10 days before the second public hearing. Also pursuant to Section 54954.6 of the Government Code, property owners subject to an increased assessment shall be notified of the two hearings by mail 45 days in advance of the second public hearing. All property within Zone 8 is presently owned by Rancho del Rey Investors or one of their guest builders. All owners within the proposed open space zone (Zone 8) were notified of the proposed improvement and both public hearings. FISCAL IMPACT: The City recovers its costs from the open space assessments. Costs associated with establishing the zone are covered by a deposit made by the developer. JEF:OS-021 Attachments: Figure 1 - Zone 8 Figure 2 - Open space district 20 map, Attachment A - Council policy Attachment B - Engineer'sit ~O WPC M:\HOME\ENGINEER\AGENDA\zone8 I~-.J \. ) - /1 ~ . eX) W Z o NW Z "0 ON N . OW zU z .-< Uet: -W et:.- '-Z tn_ -< O~ Wz Uo <- Cl.[D tn< zC> W Cl. o ~ ... ¡:: , ..... W et: :::> C> - L&. }i~ t/ / ....¡:. Cltlll, a.. IÞz' ..0 J: Go: !i II) ~-. I 11'''\.0\ '" ~ RAI....CHO DEL REV OPEN 5 "CE MAINTENANCE DISTRICT NO. 20 l I ,/ ~5' c_ , OOUNCD.. POUCY ,. CITY OF CHULA VJSTA-J , , SUBJECT: DRAINAGE· STORM POUCY BFFECI'IVB NUMBER DATE PAGE 522-01 06-11-68 lOF2 AJ)OYlto:.J BY: ResolutiDn No. 4786 , I DATPD: 06-11-68 lUl"'ll'r.RnllND The City Council bu adopted Ordinance No. 1032, relatill¡ to the conU'OI of draiDap areas and waten:ounes and It II 1berefore necessary to esublisha policy to implement said ordirIInce and can)' out iÞ purpose and Intent. _ID~ Eltablilbing a council policy related to the responsibility and fin·n'"""l of draiDap fadllties and die aiteria for the design and constrllCtÌon of storm drainale facilities. POIJey' The Council esublishes, basically, the foUowin¡ draiDap policy: 1. Desim Criteria In ,eneral, all major drainale channels shall be designee! to discbar&e a SO year ultimate storm, without static head; lateral channels shall be designee! to dischaI¡e a 10 year storm without static bead at entrances and a 50 year ultimate storm utilizinl available bead without causin& substantial damale to l\In'Oundinl property; and local channels shall be designed to .'-¡e a 10 year storm utilizin& available head without causin& substantial property damale, except that where a sump condition aists and øcess runoff bu no alternate route, apecial design Iha11 be nquired for the protection of property. 2. Gmera1 R.eSÐOnsibnitv for C"..ðftltn1mon of braina.e PatDities: Construction Remonsibllirv: Generallv. As stated herein, the basic responsibility for the maintenance and improvement of clrainale facilities is that of the ¡noperty owner through whose property the natural drainale channel runs and who requires the improwment of said facilities for the protection of his property intereSt. However, the City does have a aeneral responsibility to insure the proper conmuction. maintenance and im¡no......ent of draiDap facilitieIto protect the public health, safety and pnera1 we1fare of the City as a whole. ! .. Maiar Channels. The responsibility for the cœt of the design and COIIItNction of the most _omical design of major rhanne11 ancIltl'UCtUrellha11 rest with the City. In die event that the property owners desire a I)'IteDI iDvolvin& puter ~ than that which II ."I"o,ed by the Director of Public Works, 1bey Iha11 be requ1red to CGItI'IbIøe the diff...~ in the cœt as estimated IIy the Dh..aor of public Works. , 111 the case of DeW IUbclivisicms, the basic nspoIIIibility for Ibe cœt of design and constnIction of major cbanne1s and Itl'UCtUrelIha11 be borne by the subcliYider ødusiftly in m- cases where die IUbcliviJlon comprises a IUbltantial ponion of the draiDap basin iDvo\ftcI. ( ( . 1'1,(, A1-\wJ,...~ Þr l..::oUNCD.. POUCY , ) - CITY OF 0IUlÃ VISTA SUBJECr: DRAINAGE - STORM POUCY BFFECI1VB NUMBER DATE PAGE 522-01 06-11-68 20F2 AOOy¡..n BY: Resolution No. 4786 I DATPD: 06-11-68 b. Lateral Channels. The nspoIIIIbDity for die cost of desip IIId CODSIrUc:åon of lateral cbIIIneb and III'UCtIIrU may be IIwecI equally by die City and property owners 1nwIvecI. ". C. lAl'aJ Channels. All ~ iDwlwd In desian and CODSUUCtÎon of loea1 cbIIIne1s me!lWc:l\Ires, fDc1udin¡lWc:l\Ires In a major fir lateral cbanDe1 aervin& a loea1 system. IbalI be IIome entirely by property owners des!riD¡ Ibe imprvftmeDIJ, provided, however, that die City may participate In Aid cœIJ In in amount Dot to aceed fifty percent (50%) if die panicular IIrIpt.mment constitutes a project e1i¡1'ble for cooperatift financin¡ u outlined in Section 6 of the Policy for Fin.nrin¡ entitled "Cooperative Drainage Projects·. 3. Polin' for Finandntr Various Cat@trOries or Drainave Protects: There are .ix basic categories of drainage projects dusifiecl accordin¡ to Ibe I\IßeItecI method of financing. These categories IIId the financing policy applicable to each are u follows: L Plood Control Proiects. The fecleraI JOft1'IIIDent usually pays for all ~ acept ri¡ht-of.way, nlocation IIId reconstructÎon of utilities. These latter ~ are paid by the City with nimbunement by the SUte of California, Department of Water Jlesources. Priority for constn1ctÎon II determined by the U.s. Army Corps of Engineers. b. Subdivision Proiects. When a property is II1bc!ivided, the tubdivider is required to accept the lIItTOunding drainage u it enters his property IIId convey it In ."roprIate facDities across his property to a tuitable discharge, which may necessitate the acquisition of euements IIId collStnlctÎon of off.site drainage facilities. The cost of these projects will be paid by the subdivider. c. CaDitallmDrovement Proiects. These are drainl¡e facUities which will benefit either the entire 'City or a very large community. Projects of this nature will be financed by the City, either from the Capital OUtlay FuncI or from Gu Tu funcls. cI. Alsessment Prolects. These are projects which benefit only a loea1 community me! which are constructed under the 1911 N:t or 1913 N:t 1m¡n"...4eDt proceecllnp. The Ulet_t district will pay all ~ IIId Ibe district will inducIe only that ~..perty wbkh will receive cIirect ben..fit .. Assessment Prolects with City Particmation. These are projects whicb, In acldition to benefitiD¡ a local commllDÏty, aIJo Include wwt which is of pneraI benefit to III atenlÎft area. The atent of City participation will be IImitK to dlat portion of Ibe project of pneraI benefit to the City u a whole and US\IIIIy will not ~ ~ of the IDtaI COlt, althou¡h the Uact amount for lilY project will YU)', depenclin¡ upaD die nlatift benefit me! die ~11ities imoIftd. City ~ will be fIn...cecI from die Capital OUtlay PImcI fir from Gu Tu CImcIs u _~. f. t'.ooDeration Drainatle Prolects. A cooperative draInap project is _ In wbkh the City Ihares the tlltaI cost of the inIta1lation with Ibe plOpat)' øwner. The percentage of participation IbalI be buecI upon an IltÌlllate of Ibe nIpeCtive bene&ø dtrriwd by the City and Ibe property owner prepared by the DirectM of Public WOIb, and Ibe City'. panicipatlon IbalI be limited to ~ of the IDtaI cost of the most economical design. . /o/-? ) ) ~~Ir '" COUNcn. POUCY--) arY OF aruLA VISTA SUBJBCf: DRAINAGE· NATURAL CiANGES WITHIN POUCY EFFECI'IVE OPEN SPACE NUMBER DATE S22-02 09·14-90 ADOyu:.u BY: Resoluûon No.lS869 I DATED: 09-14-90 PAGE 10F 1 BArXGIlOUND At die meetin¡ of September 5, 1989, Council aclopted OrcIiDance 2331 which Ø9Í1ed die procedures for establWUn¡ open lpace districts in die City and provided for !be maintenance oflm¡'.v..anena in open lpace weu. Aldlou¡h Council aclopted IUbject orcIinInce, it directed Itd to mum with provisions to require die tIeftIopen to usist in prvvicIina fiDaDcin¡ for die ..../ft_...... of oatura! cIrainqe ways. PURPOSE EstabUsh a Council Policy which outlines die ftIPODIibilities of die developer repnIin¡ maintenance of oatura! drainage ways. POUCY The Council establishes die following policy for die maintenance of oatura! drainage ways: 1. When a developer requests formation of an open lpace district which includes a oatura! drainage channel u part of an open space lot, die developer shall maintain die oatura! drainage facilities for a period of five years. The five year maintenance period by die developer willlWt when die City Council accepa die open space lanclscaping. 2. The maintenance shall be guaranteed through a bond to die City in an UDount equal to die estimated five.year cost. At die request of die developer, the City may allow die bond to be reduced annually by 10940 per year and released c~mpletely after five years. 3. The district shall be fonned and ..."""ena levied during die five year period while die 'Ñl! cost of maintenance of die channel is bein¡ 110m ~ die 4eveloper. This provides a reserve UDount to be utilized in cue of emer¡ency. 4. The upstream property ownen may be required u a condition of approval of future development to pay 1heir fair share of die maintenance costs of cIownarum oatura1 clrainqe faci1iti~ which we' within, and maintained by, other open space districts. ; . ( 10/- ~ ~A ~ /:;""'0", .1.··_r . . . /. . . ::;..;;;~~C;:·';l'" 9'9" ".. ."., -.- , , , f0\1tú\-t~E NT" \3 { '- . :.';."". I~·::' _. . O'\~...- ,,~... _ .:t: ;:~..~:~,. _··..':;:r \ « .,' ,,"' - .- . . .-,;:,to" .'. '.'- -:..é:"·~...· 'QÔ \S~ ~?íl 21 W. 9· . ) x..- ,.~\ \ Ie' tHlin Communities April 22. 1993 City of Chula Vista Department of Public Works Engineering Division 276 Fourth Avenue Chula Vista. California 91910 Attention: Ms. Donna Snider Regarding: Rancho Del Rey Open Space District No. 20 Cost Estimate for Maintenance of Gabion Retention Basin Dear Donna: In response to your letter of March 23. 1993. we present the following estimate of the cost to maintain the retention basin which has just been const·ructed downstream of Rancho Del Rey SPA II. The basin is to be maintained by funds from District No. 20 after an initial maintenance period by us. This estimate assumes that Rancho Del Rey will maintain the basin for the next five years. approximately. during which the residential subdivisions upstream will be completed. The design engineer. Group Delta Consultants. has estimated that 428 cubic yards of sediment can be deposited in the retention basin before it will require deaning. They have estimated the sediment yield in the drainage basin. at the time when the District would begin maintenance. to be about 200 cubic yards per year, Therefóre they estimate that the basin would need to be deaned every other year. hi a'ddition to cleaning the basin. we assume that some minor maintenance to the access road would be required so that trucks could haul the sediment out. The access road also is an equestrian trail and will receive some level of maintenance because of that. ¡t/--t'f i { . I . .. ( , i' Given the above. our estimate is as follows: <428 c.y. (use 500 c.y.) ~ $S.OO/c.y.- Grade access road as required - $2.500 $2.000 W/~ ------- $<4.500 use $5.000 $5.000/2 year iz:Ituval~ .~.'iOO/vear We hope this estimate helps you in establishing the lone. ' Please call me at <477-4170. extension <443. should you require additional information. Very Truly Your~ . d~J¡¡;g~ - '1.ancho Del Rey Partnership Thom Fuller Vice President, McMillin ComØlunities /1" 1& PUBUC HEARING CHECK UST 7m -j,;; --1/ NOTICE OF INTENDED ASSESSMENT The City of Chula Vista by Resolution # 17488 (below) declared its intention to form an open space maintenance zone within the existing Open Space Maintenance District No. 20 for the perpetual maintenance of a gabion desilting basin and its access road located within City open space. The proposed zone consists of properties north and south of Rancho del Rey Parkway from Terra Nova Dr. to Abeto Court that are tributary to the gabion drainage structure. An estimate of the proposed assessment is $35.1 B per year per single family dwelling with no assessments to be levied for the first 5 years. The annual revenue raised by this zone is estimated to be $3,625. The yearly assessment will be collected bi-yearly by the San Diego County Tax Assessor's Office. Property owners within the proposed zone can call Tom Adler at (619) 691-5021 for additional information or send their written protest of the assessment to: City of Chula Vista Department of Public Works Attn: Tom Adler 276 Fourth Avenue Chula Vista, CA 91910 or make your protest known at one of the public hearings scheduled for July 19 and 26, 1994 at 6:00 pm. at the City of Chula Vista Council Chambers. If at least 50% of the eligible property owners by land area protest the proposed assessment the ptoceedings for the formation of the zone will be abandoned. RESOLUTION NO. 17488 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA INITIATING PROCEEDINGS FOR FORMATION OF A ZONE WITHIN EXISTING OPEN SPACE MAINTENANCE DISTRICT NO. 20, AND DECLARING INTENTION TO ORDER THE REFORMATION OPEN SPACE DISTRICT NO. 20 BY ADDING ZONE 8, AND TO LEVY AND COLLECT ASSESSMENTS WHEREAS, a desilting basin located in City open space (not maintained by a district) offOsite of the area of the Rancho del Rey land downstream and northwest of the Rancho del Rey, SPA II subdivision, between Surrey Drive and Williams Hill Road, (uGabian Drainage Structure") was built by McMillin Development on an emergency basis following the heavy rains of the winter of 1992-1993, to trap silt which otherwise might wash down from the upstream development; and, WJEREAS, pursuant to Resolution No. 15869, which adopted the City's Drainage Policy for natural channels within open space. the City will be required to maintain the Gabian Drainage Structure 5 years after construction, or approximately 1998; and, WHEREAS, pursuant to our open space drainage policy, it is the policy of the City that the cost for maintaining drainage facilities should be borne by the property owners from whence the water comes that is drained; and, WHEREAS, in order to properly distribute the costs for the maintenance of this Gabian Drainage Structure, it may be necessary to provide a special charge to a specific portion of J1-/;Z Open Space District 20 that is tributary to the Gabian Drainage Structure to provide financing for this maintenance; and, WHEREAS, seven previous zones have been established within Open Space District 20 for other special improvement facilities of limited area benefit; and, WHEREAS, the City Engineer has defined by a map the territory within Open Space 20 which is tributary to the Gabian Drainage Structure, which map is on file in the office of the City Clerk; and, WHEREAS, prior to increasing any open space assessment, the City is required to conduct, pursuant to Section 54954.6 of the Government Code, two hearings noticed to designated parties 45 days in advance of the second public hearing. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES HEREBY FIND, DETERMINE, ORDER AND RESOLVE AS FOLLOWS: SECTION 1. Resolution Initiating Proceedings per Section 22585. Pursuant to Section 22585 of the Streets and Highways Code ("Resolution initiating proceedings; contents"). adopted by reference through Section 17.07 of the Municipal Code, the City Council does hereby propose the amendment and reformation of Open Space Assessment District No. 20 by creating a special zone therein. to be referred to as Zone 8, for the purpose of collecting and paying for the maintenance, repair and replacement of the Gabian Drainage Structure above referenced, together with maintenance, repair and replacement of the access road thereto ("Improvements"), from the property owners within the territory shown on Figure 1, a copy of which is on file in the office of the City Clerk. SECTION 2. Direct Preparation of Engineer's Report. The City Council does hereby accept the Council Agenda Statement dated May 17,1994 and entitled: "Council Agenda Statement" submitted by the Director of Public Works as the engineer's report required by Section 22585(dL and notes that same is on file with the City Clerk as required by Section 22956, and approves same as the Engineer's Report, subject to such modifications as may be made after further hearings and proceedings prior to formation of the Zone. SECTION 3. Resolution of Intention per Section 22587. Pursuant to Section 22587 of the Government Code, adopted by reference under Section 17.07 of the Municipal Code, the City Council does hereby declare their intent to reform and establish Zone 8, hereinabove described, as a special zone within the territory of Open Space District No. 20 for the maintenance of the Improvements hereinabove described. to levy and bonds or notes, all of which is and shall be more fully described, including the proposed assessments, in the Engineer's Report. SECTION 4. Notice of Required Public Hearings. /1/ J ~ Pursuant to Section 22590 of the Streets and Highways Code, and Section 54954.6 of the Government Code, the City Council does hereby fix as the time and place for the required public meetings and hearings by the City Council on the question of the formation of the Zone and the levy of the proposed assessment as 6:00 p.m., or as soon thereafter as the business of the Council permits, on July 19, 1994 and July 26, 1994, and directs the City Clerk to give notice to the public hearing in accordance with Section 22551 of the Streets and Highways Code. SECTION 5. This resolution shall take and be in full force and effect immediately upon the passage and adoption hereof. SECTION 6. The City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original resolutions of said City; and shall make a minute of the passage and adoption hereof in the minutes of the meeting at which the same is passed and adopted. Presented by Approved as to form by John P. Lippitt Director of Public Works Bruce M. Boogaard City Attorney /t!//L/ PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 17th day of May, 1994, by the following vote: YES: Councilmembers: Fox, Horton, Moore, Nader NOES: Councilmembers: None ABSENT: Councilmembers: Rindone ABSTAIN: Councilmembers: None Tim Nader, Mayor ATTEST: Vicki C. Soderquist, Deputy City Clerk STATE OF CALIFORNIA) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Vicki C. Soderquist, Deputy City Clerk of the City of Chula Vista, California. do hereby certify that the foregoing Resolution No. 17488 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 17th day of May, 1994. Executed this 17th day of May, 1994. Vicki C. Soderquist, Deputy City Clerk / ¡j /)~ NOTICE OF INTENDED ASSESSMENT The City of Chula Vista by Resolution # 17488 (below) declared its intention to form an open space maintenance zone within the existing Open Space Maintenance District No. 20 for the perpetual maintenance of a gabion desilting basin and its access road located within City open space. The proposed zone consists of properties north and south of Rancho del Rey Parkway from Terra Nova Dr. to Abeto Court that are tributary to the gabion drainage structure. An estimate of the proposed assessment is $35.18 per year per single family dwelling with no assessments to be levied for the first 5 years. The annual revenue raised by this zone is estimated to be $3,625. The yearly assessment will be collected bi-yearly by the San Diego County Tax Assessor's Office. Property owners within the proposed zone can call Tom Adler at (619) 691-5021 for additional information or send their written protest of the assessment to: City of Chula Vista Department of Public Works Attn: Tom Adler 276 Fourth Avenue Chula Vista, CA 91910 or make your protest known at one of the public hearings scheduled for July 19 and 26, 1994 at 6:00 pm. at the City of Chula Vista Council Chambers. If at least 50% of the eligible property owners by land area protest the proposed assessment the proceedings for the formation of the zone will be abandoned. (Place Resolution 17488 here) TA:rb (F:\HOMB\BNGINBBR\LANDDBV\RDRNOTIC,TA) ;t//Jþ COUNCIL AGENDA STATEMENT " Item /.P Meeting Date 7/19/94 ITEM TITLE: Public Hearing to consider testimony on the establishment of Zone E within Eastlake Maintenance District No.1, for the perpetual maintenance of Telegraph Canyon channel Director of Public Work~ , City Manager J,l1 ~ ~ (4/5ths Vote: Yes_NoX) SUBMITIED BY: REVIEWED BY: On May 24, 1994, the City Council adopted Resolution 17504 declaring the intention to establish Zone E within Eastlake Maintenance District NO.1 (ELMD1) to provide for the maintenance of Telegraph Canyon drainage channel pursuant to the City/Eastlake Development Company agreement. Tonight's public hearing will consider testimony for assessing benefitting properties within Eastlake Maintenance District No. 1 for their pro rata share of the costs. RECOMMENDATION: That Council open the first hearing, take testimony, and close the first hearing; and hold the second hearing on July 26. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: On May 24, 1994, Council declared its intent to establish a zone (Zone E) within ELMD1 for assessing properties for maintenance of the section of Telegraph Canyon drainage channel recently improved. Council reviewed several alternatives (Attachment I) and adopted the staff recommendation in this report. Tonight's public hearing will consider testimony for establishing Zone E within Eastlake Maintenance District No. 1 (ELMD1) to provide revenue for the drainage channel maintenance. The second hearing, originally noticed for tonight shall be continued to July 26 after which Council may take action to establish Zone E and levy the corresponding assessment. Council approved the levy of assessments for FY 1994/95 for ELMD 1 Zones A and B on June 21, 1994 which overlap Zone E. The proposed, combined assessments are shown in Attachment F. The following report outlines the boundary of Zone E, assessment schedule, maintenance costs, methodology, and notice requirements. Boundarv. Assessment and Maintenance Costs The method of assessment spread approved on May 24 consists of assessing all benefitting properties within Eastlake Business Center and Eastlake Greens via Zone E, ELMDl. Table 1 outlines the proposed assessment for properties within the proposed boundary of Zone E. 1..5-- / Page 2, Item I Þ' Meeting Date 7/19/94 TABLE 1 ELMDl FY 94/95 ASSESSMENT ZONE E(l) Eastlake 1 Industrial $9.30/30 Commercial 8.24/ac Zone B EastIake Greens Residential $1.24/.20 EDU(3) Commericial 8. 24/ac Golf Course 3.10130 (I)Future assessment and cost is estimated at $4.56/0.20 EDU ($22.82/EDU) upon turnover of Phases 2 and 3 of the channel. Residential ~ $22.82/EDU Industrial ~ $34.24/ac Commercial = $30.36/ac Staff proposed that Zone E ultimately cover the cost of the channel maintenance for the three phases of the channel between Eastlake and the end of the improvements at the western boundary of Rancho del Rey east of Paseo Ladera. The boundary and future areas of benefit as shown on Attachments A and B are all of the currently undeveloped properties within these limits and include Sunbow II, Baldwin, Rancho del Rey SPA 'f 3, and T~raph Canyon Estates. Staff has calculated Eastlake I and the Green's prorated share of the overall channel maintenance to the undeveloped properties (Rancho del Rey, Baldwin, etc.) at approximately 20.4 % as outlined in Table lA. Staff anticipates creating a zone within various future and existing open space maintenance districts to incorporate the cost of all three phases in future and existing districts where the properties drain into this channel. TABLE lA - EASTLAKE ZONE E PERCENT OF BENEFITING PROPERTIES Development Percent of Basin(1) Eastlake I Business Center 13.4% Eastlake Greens Golfcourse 1.0% Commercial 1.3% Residential Sold as of 12/31193 2.4% Sold after 111194 .1% Not sold 2.2% Subtotal 20.4% Salt Creek Ranch 10.0% Telegraph Canyon Estates 6.0% Baldwin 45.6% Sunbow 11 3,1% Rancho de Rey 6.7% Eastlake Business Center II 6.5% Miscellaneous 1.7% (I) Actual percent IIUl.Y vary depending on the fmal development plans of future developments. Table 2 outlines the cost of channel maintenance by construction phase. The amount includes the cost for removing silt at the silt fences and removing invasive plant material. See Attachment C for an itemized cost breakdown. ;5" :L Page 3, Item /,Ç Meeting Date 7/19/94 TABLE 2 SILT FENCE PLANT TOTAL ELMDl @ COSTIEDU REMOVAL 20.4% Phase I $4,079 $4.822 $8,901 $1.815 $4.72 ........................................ ........................................ ........................................ ........................................ ........................................ Phase 2 5,743 12,449 18,192 3,709 9.64 ........................................ ........................................ ........................................ ......................................" ........................................ Phase 3 6,407 6,780 13.187 2,689 6.98 SUBTOTAL $40,280 $8,213 $21.341EDU FORMATION COST 571 $ 1.48IEDU TOTAL $8,784 $22.82IEDU It is proposed that Eastlake Greens and the Business Center be assessed their pro rata share of only Phase I of channel maintenance in FY 94/95 (fable I) because staff anticipates that the other two phases will not be ready for turnover. The above table also incorporates the cost of formation of the district. Staff proposed and City Council approved that the cost of formation of Zone E be spread among the benefiting properties in the same manner as the maintenance cost. Eastlake Development Company has advanced the funds to form the zone within the open space district and is required to be reimbursed from the district pursuant to the development agreement (Attachment E). Methodolo!!v The methodology for spreading Zone E' s cost is based on the amount of storm water runoff anticipated for various land uses on an acreage basis_ Table 3 summarizes the factors and outlines the various rates based on land use. This is consistent with the methodology used for Open Space District No. 20 which includes channel maintenance as a responsibility. The calculation is based upon 1 EDU/AC at $22.82 per year assessment. Other yearly rates are multiples of the spread factor times the $22.82 per year assessment. A typical residential assessment in Zone E for the channel maintenance is under $5.00 per year. TABLE 3 DENSITY RUNOFF SPREAD ZONE E FY 94/95 LAND USE EDUlac COEFFICIENT FACTOR Phase 1-3 ZONE E Ph I Only Single Family @?pi .6 1.00 m¡¡¡Z $ij;!¥I if!ÎŒ .6 .33 7;;~ij iiíi4 4-6 .6 .20 4.56 Li4 6-8 .6 .14 3.20 0.88 8-10 .6 .11 2.52 0.68 ---------------- --------------- ---------------- ---------------. ---------- ------------ Single Family 10-12 ,7 .10 2.28 0.62 12-20 .7 .07 1.60 0.44 ---------------- --------------- --------------- --------------- ---------- ------------ Multi-Family 20+ .8 .05 1.14 0.32 ---------------- --------------- ---------------- ---------------- ---------- ------------ Employment Park .9 1.50/acre 34.24/acre 9.30/acre ---------------- --------------- --------------- ---------------. ---------- ------------ Commercial .8 1. 33/acre 30.36/acre 8.24/acre ----------------- --------------- --------------- --------------- ---------- ------------ Church .7 1. 17/acre 26.70/acre 7.26/acre ---------------- ~--------------- --------------- ---------------- ---------- ------------ Golfcourse .3 .SO/acre 11.42/3Ore 3.IO/acre (l)No homes in Zone E (ELMD1) are at this density. 1>'3 Page 4, Item ) ~ Meeting Date 7/19/94 Notice and Public Hearings All owners within ELMO 1 were notified of the proposal to establish Zone E within ELMD I and those who fall within Zone E and will pay the additional cost were notified of the proposed assessment based on the estimated future cost pursuant to the Landscaping and Lighting Act of 1972. Staff also conducted a meeting on June 23 to provide information regarding Zone E to any interested property owner within ELMD!. Representatives from Eastlake Development Company and the Eastlake golfcourse were in attendance and do not oppose the Zone. No other property owners attended. The assessment may not be imposed if a majority protest, by assessable land area, exists after the close of the second public hearing. Staff has received one written protest included as Attachment H and also received two phone calls against this proposal out of 300 properties proposed to be assessed. FISCAL IMPACT: The cost of formation of this zone and the cost to analyze the overall basin is estimated to be $14,000. Eastlake Development Company has deposited the funds for this work. Approval of Zone E, after the second public hearing will provide $1,815 of revenue to be used for channel maintenance and $571 to be used for reimbursing Eastlake Development Company for district formation costs Fiscal Year 1994/95. The balance needed for the channel maintenance for Fiscal Year 1994/95 will be provided by Telegraph Canyon Estates, OSD 31, ($534) and Eastlake Development Company ($6,552) pursuant to the City/Eastlake Development Company agreement. Ultimately, when all three phases of drainage channel maintenance is turned over to the City, Eastlake Development Company's obligation will increase to $29,646 (73.6%) until the other properties in the drainage basin develop. All costs are calculated at full cost recovery rates. '-"=, g ~ A - Boundary of Zone E B - Location of improvements and drainage basin for Phases 1, 2 and 3 of the channel C - Calculation of prorated share D ~ Cost summary E - Agreement between Eastlake Development Company and the City F - Combined assessment G - Minutes of May. 1994 meeting H - Protests I - Alternatives M:\HOME\ENGINEER\AGENDA\ZONEER DS/Fi1e No.: OS-029 IY~ CITY COUNCIL AGENDA STATEMENT Item J (, Meeting Date 7/19/94 ITEM TITLE: PUBLIC HEARING: CONSIDERATION OF COASTAL DEVELOPMENT PERMIT #066 FOR SDG&E TO REMOVE AND FILL EXISTING TEST WELLS LOCATED WEST OF BAY BOULEVARD, NORTH OF E STREET 17.573 RESOLUTION AUTHORIZING THE ISSUANCE OF COASTAL DEVELOPMENT PERMIT #066 FOR SDG&E TO REMOVE AND FILL EXISTING TEST WELLS LOCATED WEST OF BAY BOULEVARD, NORTH OF E STREET SUBJECT TO CONDITIONS OF APPROVAL SUBMITTED BY: Community Development Director LS . REVIEWED BY: City ManagerJG\ Þk~~ ' U (4/5ths Vote: Yes No _I BACKGROUND: In January 1986 the fuel oil transfer pipe serving SDG&E's South Bay Power Plant developed a leak. To repair the leak, SDG&E secured the necessary permits from the City of Chula Vista and received the appropriate direction from the Regional Water Quality Control Board. Several monitoring wells were drilled to perform soil and groundwater contamination sampling during the course of the fuel oil clean-up. In September 1986 the Regional Water Quality Control Board notified SDG&E that no further remedial actions were necessary. Recently, SDG&E became aware that monitoring wells which have no further purpose are required, by the San Diego County Department of Public Health Services, Environmental Health Protection Section, to be removed and closed. In response, SDG&E is planning to remove the wells. The proposal is a class 15304(c) CEQA exemption from environmental review. SDG&E will need to obtain a Well Abandonment Permit from the San Diego County Health Department in addition to a Coastal Development Permit from the City of Chula Vista. RECOMMENDATION: That the City council conduct a public hearing and adopt a resolution: 1. Finding that the proposed removal and filling of seven existing test wells is consistent with the policies of the certified Chula Vista Local Coastal Program; and 2. Issuing Coastal Development Permit #066 subject to conditions. /¿,,/ '~"------,....._----~._--,,-,.,..._,._-~~----_._". Page 2, Item / "- Meeting Date -2jL-LY1 If BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: SDG&E proposes to retain the services of a licensed drilling subcontractor to ream the existing well boreholes and remove the existing 4 inch diameter metal well casings which are approximately 10 feet deep. (A map of the site and well locations are attached as Exhibit A.) Twelve to eighteen inches around each pipe will be excavated and will result in about a 24 inch diameter hole that will be backfilled with bentonite to about 2 feet below grade and the last 2 feet will be filled with native soils as recommended by Woodward-Clyde Consultants. No grading will be required. Existing backfill around the existing well casings will be excavated and removed. This material will be placed in 55 gallon steel drums and taken off the site to an approved disposal/storage yard on SDG&E property. Generally, an area of about 75 sq. ft. at each well will be disturbed from the work and equipment. These areas have been previously disturbed and will be hydroseeded with a biological seed mix as recommended by Pacific Southwest Biological Services, Inc. As stated above, the site has been previously disturbed. It is located within the 150 ft. wide SDG&E transmission tower line easement just north of the Nature Interpretive Center parking lot within the Chula Vista Coastal Zone. The site is accessible from existing maintenance roadways. A remnant marsh area is located nearby but no intrusion will take place since all work will be conducted within the currently disturbed area. Findinas Based on the following findings, the proposed removal of test wells, subject to conditions of approval listed in Exhibit B, is consistent with the policies of the certified Chula Vista Local Coastal Program: 1. The proposed well removal will not cause disturbance to any undisturbed natural vegetation or wetland resources. Excavation activities will be limited to the area disturbed previously when the wells were installed. The area of work will be revegetated in accordance with a qualified biologist, and the well casings will be removed and boreholes filled in accordance with the County of San Diego and State of California regulations. 2. The statewide and Regional Interpretive Guidelines have been reviewed and the proposed project conforms with the requirements of Section (c) of the Public Resources Code. That section states that for every coastal development permit issued between the nearest public road and the shoreline, a specific finding shall be made that such development is in conformity with the public access and public recreation policies of Chapter 3. The proposed well removal will not impact or impede access to or the use of existing public recreational facilities nor will the project preclude I ¿. ~ "'" Page 3, Item 1(, Meeting Date ~hl.f development of such resources, therefore the project proposal is in conformance with the public access and public recreation policies of Chapter 3. FISCAL IMPACT; Issuance of Coastal Development Permit #066 will not result in any financial benefit or impact to the City of Chula Vista. cdp66.113/Bayfrontdisk1 It·:; /16-1 RESOLUTION 17">7..3 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE ISSUANCE OF COASTAL DEVELOPMENT PERMIT #066 FOR SDG&E TO REMOVE AND FILL EXISTING TEST WELLS LOCATED WEST OF BA Y BOULEVARD, NORTH OF E STREET SUBJECT TO CONDITIONS OF APPROVAL WHEREAS, the City of Chula Vista Local Coastal Program (LCP) has been certified by the California Coastal Commission; and, WHEREAS, said LCP includes coastal development procedures determined by the Commission to be legally adequate for the issuance of Coastal Development Permits and the City of Chula Vista has assumed permit authority for the Chula Vista Coastal Zone; and, WHEREAS, a public hearing was noticed, and held on July 19, 1994 In accordance with said procedures; and, WHEREAS, the City Council of the City of Chula Vista, as the "approving authority" has reviewed SDG&E's proposal for the removal and filling of existing test wells located west of Bay Boulevard and north of E Street and said proposal is a class 15304(C) CEQA exemption from environmental review. The City of Chula Vista finds, based on the following findings, the proposed removal of test wells, subject to conditions of approval listed in Exhibit B, is consistent with the policies of the certified Chula Vista Local Coastal Program: I. The proposed well removal will not cause disturbance to any undisturbed natural vegetation or wetland resources. Excavation activities will be limited to the area disturbed previously when the wells were installed, the area of work will be revegetated in accordance with a qualified biologist, and the well casings will be removed and boreholes filled in accordance with the County of San Diego and State of California regulations as a condition of approval. 2. The statewide and Regional Interpretive Guidelines have been reviewed and the proposed project conforms with the requirements of Section (c) of the Public Resources Code. That section states that for every coastal development permit issued between the nearest public road and the shoreline, a specific finding shall be made that such development is in conformity with the public access and public recreation policies of Chapter 3. The proposed well removal will not impact or impede access to or the use of existing public recreational facilities nor will the project preclude development of such resources, therefore the project proposal is in conformance with the public access and public recreation policies of Chapter 3. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does hereby resolve that the City Council of the City of Chula Vista hereby issues Coastal Development Permit #066 to SDG&E for removal and filling of existing test wells located west of Bay Boulevard north of E Street subject to the following conditions of approval: /~,f I. The area of work shall be revegetated in accordance with recommendations provided in a letter dated June 2, 1994 from Pacific Southwest Biological Services, Inc. re: South Bay SDG&E Monitoring Well Removal. 2. The well casings shall be removed and boreholes filled in accordance with the County of San Diego Well Abandonment and the State of California well regulation's Bulletin 74-90. 3. All work shall be conducted within the boundaries of area previously disturbed when the wells were installed. PRESENTED BY: APPROVED AS TO FORM BY: ¡l~~ ~~ ~JJJ£ Bruce M. Boogaard City Attorney Chris Salomone Community Development Director /~ -'" /;6-7 u = ~ ~ ¡..... ~ ;o~ " ! ..~u _~ : _~~ .A <, ~'. ~ S" ......1 5,. - I) -' I 0- -0 -0 \ I i ! , I i I ! 1'rlðJe:ar p~ " ~~ ," :p ,-~" ¡."", - ,.,! ..ro:- .:'':' $ - ~ ~ #!JJi ...t ,w :¡" ,~ Jl~ ,iiI Þ -' .tl .r~ .::~ ;z t : .¡- ~ .. . .Ii ~ ~!~ ,I) ~, ,:~ g '6E.S~ .a.::. ':" ". ',~ .1. '. 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C. o.w :g ~ a. ::-. ~:·~::5.: , "'"_._g~.-... i ~g' .;:.~ 8 .. . - ... ... ~ ... ~~~:~:;;~~~ í ~ ~~ ~ ~~ i ! /' / /' - . u . ~ . . , i " ~ = :;; , ~ ~ ~ - õ 0 !i = ~ ; ; u ~ ~ ä " ~ u ~ J J J Z L ~ ~ J L ~ ~ ~ - ~z ~ ~ 5 ~ " ~ · · , ~ j~ ~ ~ o · = o - ë ~ ¡ õ õ = õ ~ · ; · u u ~ ~ & ~ >- i § ¡ " - .. ! ~ y · ~ - ... ~ : ~ . ~ ~ .. r· i ~ ~ ü J: " ~ ~ :; f . · · ~ % u ~ = L U 7 ~ · · · " ~ : · . o 0 , u ë. ~ ~ = ~ ; > · ~ · ~ - - f · ~ õ. = ~ · ~ / I / , EXHIBIT B Conditions of Approval 1 . The area of work shall be revegetated in accordance with recommendations provided in al letter dated June 2, 1994 from Pacific Southwest Biological Services, Inc. re: South Bay SDG&E Monitoring Well Removal. ~. 2. The well casings shall be removed and boreholes filled in accordance with the County of San Diego Well Abandonment and the State of California well regulation's Bulletin 74-90. 3. All work shall be conducted within the boundaries of area previously disturbed when the wells were installed. cdp66. 113/bayfrontdisk 1 I('~/(J PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA, County of San Diego: I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above-entitled matter. I am the principal clerk of the printer of the STAR-NEWS, CHULA VISTA, a newspaper of general circulation, published TWICE-WEEKLY in the City of Chula Vista, and the South Bay Judicial District, County of San Diego, and which newspaper has been adjudged a newspaper of general circulation by the Superior Court of the County of San Diego, State of California, under the date of April 23, 1951, Case Number 164327; that the notice, of which the annexed is a printed copy ( set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: 7/2/94 all in the year 1994 I certify ( or declare) under penalty of perjury that the foregoing is true and correct. Dated at CHULA VISTA California, this 2nd day of Ju ly ,1994 ~~' ~) Signature æ RINC AL ERK This space is for the County Clerk's Filing Stamp Proof of Publication of: Notice ------------------- CV04110 ------------------- /6 ~ /1 NOTICE OF PUBLIC -- HEARING BYTHE CHUlA VISTA CITY COUNCIL CHULA VISTA~CALlFORNIA NOTICE IS Ht:REBY GIVEN THAT THE CHULA VISTA CITY COUNCIL will hold a pu. bIle hearing 10 consider the fo. lowing: Considering a Coastal· De- vetop(1lent Permit application submtte~ by SDG&E to ra. move five exIsting under_ ground tesl wells. " you wish to challenge the City's action on this maner In court, you may be limited to ra- IsIng only those Issues you or someone else raised at the pu_ blic hearing described In this notice, or In written correspon_ ! dence delivered to the City Cler~'s Office at or prior to the I PUbhChear,.. SAID .... ..., ING Will BE.. "CITY COUNCIL ... ~. JuJy 19, 1994 ... ...... the I ~~~~cIIB7~-~~th /\vanue:ii'3:t *"' 8t'IY par. ~on desiring II) .. heard may 3.pf?ear, JATED:June28,1994 Beverly A. Authelet ::V041,O CltyCJerk 7/2194 '94 05:33PM PACIFIC SOUTHWEST BIOLOGICAL P.U1 Pacific Southwest Biolo8ical Services, Inc. Post Office Box 985, National City, California 91951-0985 . (619) 477-5333 . FAX (619) 4ì7.1245 22 June 1994 Mr. Mark Chomyn Land Services Department San Diego Gas &0 Electric Co. 101 Ash StteeI San Diego, CA 92101 Re; South Bay SDO&E Monitoring Well Removal Dear Marie, & you have requested. we have coa.sidered the proposed well removal and the need for resuding the area once well removal is complete. & you are aware, Pacific Southwest has conducted . considerable amount of work in the Chula Vista Bayfront over the past years aud as a result, we are kunly aware of the areas environmental conditions. We are currently under contract to restore habitats on the Sweetwater River National Wildlife Refuge. We undentand your needs to be the development of. seed mix for reseeding upland areas disturbed by the removal of the wells, Similar uplaud seading was conducted by Santa Fe Land and WaU Dcvelopment in 1987 when imported soil was brought to the central portion of the bayftont. Vegetation was not irrigated and due to the regular coastal fog plants grew vigorously . We have selected a similar species list to recommend to you. Becataè of the small size of the well nlmoval disturbance area, we would recommend that seeding be by band broadcast as opposed to hydrost.eding, No carrier, mulch or .""",d""""ts would be necessary if suding is done in this manner. The site mould be disced or ripped prior to planting. The seeding mould be dOlle aud im.tl1ediately heavily watered with a high spray and large droplets !raID a water truck to force seeds into cracks and crevices. ~ sead mix should consist of the following: Species Plantago inruÚlris Encelia calffornlca Artemisia cali/arnica Erlogomml fasciculaturn /10coma veneta lbs/ac. 5.0 8.0 10.0 6.0 4.0 Should hydroseeding be preferred, 1000 1\)$/ac, of 'Silva' mulch and 160 lbs/ac, binder should be used in the mix. & you are aware, the uplands of the bay!ront are highly disturbed and as a result, weed" will always be a problem. An infestation of woeds is likely. however, seeding would provide some opportunity for native vegetation establishment and the reduction of erosion potential. 1 hope this information is what you requin. If you have any further questions on this issue, please call. 7if~ Keith W. Merkel )¿,"/I '-. e- e ----\ Tanks. Wells & Borings WELL & BORING CONSTRUcnON STANDARDS (19) Wells sbouJd be surveyed in aa:ordanœ with Section 4 (3XaJ of tlûs ~ (20) SpedaI ronsideraêon about Vadose weUs '(a) Design (î) Vadose we1l(s) n1aY be designed for monitoring or remedîal action purposes. [Ii) The vadose weIi(:;) fo¡: momtoring' pn:rposes Should -be designed to detec! ",,'Mtmces being'UJCJIrltored.. . [Iii) The ,,-e1ICs) ShouJd be designed to reduce the poœntîil' for cross mntamÏnat10r (b) ConsIrodion (j) Vadose welles).sha1I be cû>.6t.....cted with a well seaL The depth of the well sea; be approv-ed by EH5 on .. case-by-case basis. - b) DESTRUCTION OF WELLS AND EXPI..ORATORY BORINGS (1) Groundwater and Vadose Wells - A mmñtoring well sbaII be des1royed by removing aD ilia within the original borehole, ~g theca5ing.:51ier pack and.anm:ilar Seal, with thet'eIIIiÓ Ð borehole r".;,,¡- mmpleteIv filled !row the bottom of the borehole to the ~ surface !!!!f¡ 4 appmvei.sæJine: matëriãT as c;p""'Î1'Woñ in BnIietin 7+9(1._ . (2) ExpIoratmy Borings- All expbralmy borings sbaII be seaJed from the bounm of the boring t grotmd $UI'face w.ithanapl"~.edsœ1ingmatma1 assped£ied in CaHfomia DeparimentofV :Rescnn-œs BttIJetins 74-81 and ,74-90. PJaœmenl: of any sea1ing n-aœrìa1 at a depth ~ 30 feet must be done using !:lie tremie method. (3) Cone Penetrmneœ!'Test Hole5 (CPD- A1l CPThotessbaII be sealed from the boUnm of the b to the ground sarH-..... with an approved <=l~mater:iaI as spedfiedin CaIifomia Depart of Water Rdool1...= BnlleI:itIS;1+8l and 74:90- P1aœment of any _sealing materia1 must be usiPg the' tremie method.. ' PROCEDURES a)VAAJANCES Due Ie speåa1 ~c geo~ and hydrogeologk œnêliliOl1S, EH5 may a1Iow varianœs 10 design of a groundwater or vadose m.,.ât>.ning weIl(s). This varlanœ will be applied on a case-by basis and mnst be 8f'p;uved by EHS prior to C()1QL.......1Ïon of the weIICs). b) REPORTING, NOTIFICATlONSo AND INSPECTIONS (1) A representative of EHS wiQ. on .. case-by-case basis, observe the insfëI)}alion of welIsJbo¡ EHS requires a ~ ooiiœ of~ prior to drilling. (2) Well owners are r"':{w.ed to .....,.;..,"'ñt tiæÏr weI1(s) in good condition. Ins,¡..cdîoDs wüI be' of all permitted weDs. - . (3) Reports amceming the a:mstrudkm. aitelation or destn1dion of vadose and ~ and borings shall be filed wit)1 EHS within 30 daysof œmp1etion.. :rœse >,¥,&bSba1l amIai not be Hmiœd to:: (a) Adetñled,;;¡:aIed p1ot¡p1an SÞowing location of P&op.;.ty Hnes,exiStingimprovàœnt> as s!radm'E!S, und"'¡s&......:I tmb, u:nd"'5'......d utilities, tmdergtound pit'Î',&ar. Ioœtion of an weDs and borïng!L (b) A deIai1edIog for each we1I/boring desaibing the density, moisture content,. m1or. : så.e distrìbuIion and .,h......Jç.. of an IitboIogic units pe:netr.Ited. The IogmuSt inch; (j) the depth of fust g¡u......dwaœr; /¿ ../..2. '3.. County of San Diego, CA, EHS, SAIM-I..EA SAJW ......."'11994 ._.''"''::.:......:...-.. \ (f3v.IlQ£r1 14>~) (NOTE: Figure 4A appea-'"S on page 31 of Bqlletin 74-81. not been reproduced for this supple¡nent_) , It has "If the temporazy Conductor casing cannot be reJIloved, eve-ry effort ..h,.ll be'made to place sealing material bat-ween the outside of the conductor casing and the bore hole, and to ensure that the sealing material has, filled the am1ular space between the c;ondnC""..or casing and well casing to meet the depth ~eci.fications in Subsection A, above. Installation of a permanent conductor casing is discussed in Paragraphs 3 andS below." , , (Note: Paragraphs 3 =d 5 are ottpages 30 and 32 of Bulletin 74- 81.) "2. Wells situated in lJnCOnsolidated ma.terfal with sicrnifica.nt clav lavers. An oversized hole, at least 4 inches greater in diameter than the otr"...side diameter o£ the well casing, shall. be drilled and the annttl.ar suace betw~ the borehole wall and the well easing filled with sealing material as shewn 'in Figure '4B~ If a significant layer of clay or clay-rich deposits having low pe=eability is enc.otmtered within 5 feet of the 'bottom of the "';n;~ -se¡Ü preScribed in SUbsection A of this section, the seal ..h=11 be extended at least 5 feet- into the clay layer. Thus, the depth o~ seal could be extended as Jiluch as another 10 feet. If the clay layer is less than 5 feet in total. thickness ¡,. . the sealsb.aJ.l extend through its: entire thickness." Note: Figure 4,B appears on page 31 of Bulletin 74-81. It has not been reproduced for this suppl~ënt.) , "If ca~-I1g material is present, a temporary conductor casing shall be insta1.led to hold the ,borehole open duriDg well drilling and placeIQent· _ of the annular seaJ.. The a..nnu1¡µ- space shall 'be sealed as described in Paragr<lph J., above." The r""..,,"'n,ng paragr<lphs under SUbsection Bare unchanged. Subsection c is unchanged. SubseÞtion D has been ch=gßd to read as follows: -- ? "D. Sealina MateriaL Se",liT1g material shall conSist of neat ceme..."t grout, sand'-CeIllent grout, concrete, bentonite clay, high-solids. bentonite clay, or bentonite-ceJIlent grout.. Bentonite clay products used for aJJIlular sealing material JIIUst be specifically prePared for such use. Used driller's JiI1ld or_cuttings from drilling shall not be used as sealing material- I~" /.J 1. Water. Water used to prepare sealing JI!ÍXt1lI'es shouJ.d gene:raUY be of ð.rinkil1g ....-ater quality and shall be free of petrOleum =d petrOleum products aDd free of suspendec:; matter _ III S01Ile cases water com>idered to be non-potable, with a :max.i.1:ü= of 2,000 :rn.ìlligraII1S ¡>èr liter chloride and 1.500 1!Ig/J. sulfate, ¡nay be used for cement-baSed seal mixtures. The gnality of water to be used for sealing :mixtures should be dete=ined where' unknown. 2. Cement. Cement -wi>ed in sealing 1!1.ixtures shall l<1eet the requirements of 1\)]lerican Society for Testing and Katerials C:l50, ..Sta!1dards Specification for: Portland Cement, II including the latest revisions thereof. TypeS of portland cement available Under .ASTM C1.50, for general coP5trt1c'-...ion are:' . Type I _ General. purpose_ si1ni1ar to AJnerican petroleium InStitute Class A. Type II Hode....""a."t:e res.i~..ance to suJ.fate. Lower heat of hydration than Type :r. si1D.ilar 1:0 APICl.ass B. Type In: -High early stren9th. Reduced curing time but higher heat of hydration than Type I. silrllar to API Class C. I I J ] 1 · Type IV _ Lower heat of hydr..\tion than Types I and III. Extended setting tiJD.e. Type V High sulfate resÏS'"...a!lce. · SpeciaJ. acceJ.erators and. retardants to setting, and other additives 1!IaY þe used in some cases. special field additives for Portland cement mixtureS shall meet the reau.iI-ements of ~ C494, "Standard SPecì:fica.tion for Chemical Ad:mixt=es . for concretê, II and latest revision thereof. Hydrated liJ¡¡e tnay be added up to 10 percent of the volu¡¡¡e of cement used t.o make the seal 1rlx 1IIore fluid. Bentonite:may be added to cement-based 1IIÌXes, ·up to 8 percent þy_ volume of cement Used, to improve fluid characteristics of the sealing mix añd to reÇiuCe shrinkage. Dry additives sbould be mixed with dry cement befo~e adding ~ter to the entire 1I!ixture to ensure proper 1IIixing, uniformity of hýdra.tion, and an effective and homogeneous seal. I I , · Tb.e m';",,;-mWn ti:rues reqaired for sealing materials containing Portland cement t.o nsetn before constrU~...ion operations on a well may be resumed are: I¿-/' 26 c. Types I and II cement - 24 .hOtl.."'"S Type III cement_-, J.2 ho= Type V cement - 6, hours Type IV CE!3!!ent is: .seldom =ed for aJ:I1lular seal.s, beca.=e of its extended setting time. More time should be a1J.owed for cement-based seals to set when COTh;.l..Í.act::ion Qperations require the annular seal to b.ive greater Compressive streng'-....h. Allowable set:'-...ing' times may be reduced Qr lengthened by t1Seof accelerators or retardants specificaJ.ly designed to modi:fy setting tbne_ Care shotJld be exercisect to. control the heat of hY<ñ:ationgene....-ated during the setting of cement in an annular seal When plastic well casing is used. Heat can Ci'roSe plastic c<wing toweaJœn and collapse. Heat gener.ation is a special. concern Where thin-w:aJ.l Plastic we1J. casing is used, the well casing wi_lJ. be subjected to significant net pressure during se'tting, Qr the radial thickness of the annular seal. is great. : Additives 't:hat accele....-ate set:'-...ing also tend to increase the rate of heat generation. from setting cement and thus, shOuld be used w:ith caution Where plastic casing is employed. . The ·temperature of a setting cement seaJ. can be lowered by circuJ.at.i..ng 'W-ater inside the well casing and/or by adding up to 8 percent bentonite (by volmne of cement USed) to the cement mixture. Cement-based sea.ling material shall be as- follows: a. Neat CeIne..T1t.Neat cement grout shall be mixed at a ratio of one 94-pound sack. of Portland cement to 5 -to 6-~/2 gallons of clean Water_ b. Sand--Cemgnt Grout. Sand-cement grout shall be mixed at a :ratioof not more than 2BB pounds of sand to one 94-pound sack of PortJ.and cement (2 parts sand to ]. part cement, by weight) and about 7 gallons of clean water. This is equivalent to a "10_3 sack mix". Concrete. Concrete is often useful for large volume annular seals such as in large- diameter wells~ The proper use 0:1; aggregates can decreasè the pe....-meability of the annular seal, reduce shri..nkage, and reduce the heat- . of hydration generated by the seal. Concrete shall consist of Por-...land cement and )¿"1..5 . 27 ~ ~ 2¡J- /1~ S'~-~ /ó/ ~ ~ IX- £>-!t",w;d ~ a-u-''';j~ /Zði- .tYíP'~<-r-1~ß ß7~~-,,-:I µ/~ -~O ~~ . PUBLIC HEARING CHECK LIST "ì J 1£1 Iq~ SUBJECT: {\.ð.._.s'.~ 0..-.J:.1.. Jv.,o~~(?.........:J.. ^-,_o..'of-~-, ~ ' "", ' b8ei.1'IC,I4. ~....."tt..1: .b..- ~b'-... ~ Jo /V-..... Q._L J........'..-- <..S) J-J.~ ~ t== ~ .. .tvt~ ~ ~. SENT TO STAR NEWS FOR PUBLICATION.. BY FAX ".,.-- ; BY HAND_; BY MAIL I h....I 0, Y , , PUBLIC HEARING DATE: ,J PUBLICATION DATE MAILED NOTICES TO PROPERTY OWNERS NO. MAILED PER GC §54992 Legislative Staff, Consttuction Industry Fed, 6336 Greenwich Dr Suite F. San Diego, 92122 LOGGED IN AGENDA BOOK 1.0/2- '!( I q Y COPIES TO: Administration (4) ~ Planning V" Originating Department Engineering ./' Others V ~/2-'i ~ I City Clerk's Office (2) POST ON BULLETIN BOARDS SPECIAL INSTRUCTIONS: 7/93 -55- /~ -- J 7 PUBLIC HEARING NOTICE NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING WILL BE HELD BY THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA for the purpose of considering a Coastal Development Permit application submitted by SDG&E to remove five existing underground test wells. The project is located within the SDG&E transmission line easement north of E Street west of Bay Boulevard which is located within Chula Vista's coastal zone. A copy of the Coastal Development Permit application is on file for inspection in the office of the Community Development Department. The proposed project was issued a 15304(c) CEQA Exemption from environmental review. Any petitions to be submitted to the City Council must be received by the City Clerk's office no later than 5:00 p.m. one (1) day prior to the hearing date. If you wish to challenge the City's action on this Coastal Development Permit in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at or prior to the public hearing. Within ten (10) days following the Coastal Commission's receipt of the City Council's action on the above coastal development proposal, said action may be appealed to the California Coastal Commission by a qualified appellate. If the City is not notified within the prescribed time element of a pending appeal, the City Council action will be deemed final and a Coastal Development Permit issued. Said public hearing will be held by the City Council on July 19, 1994. The hearing will be at 6:00 p.m. in the Council Chambers, Public Services Building, 276 Fourth Avenue, Chula Vista, at which time any person desiring to be heard may appear. Beverly Authelet, City Clerk Dated: 7/2/94 [c:1 w p win IBu chan Imasterslph cd pnot. mst] /b-/~ NOTICE OF PUBLIC HEARING BY THE CHULA VISTA CITY COUNCIL CHULA VISTA, CALIFORNIA NOTICE IS HEREBY GIVEN THAT THE CHULA VISTA CITY COUNCIL will hold a public hearing to consider the following: Considering a Coastal Development Permit application submitted by SDG&E to remove five existing underground test wells. If you wish to challenge the City's action on this matter in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk's Office at or prior to the public hearing. SAID PUBLIC HEARING WILL BE HELD BY THE CITY COUNCIL on Tuesday, July 19, 1994, at 6;00 p.m. in the Council Chambers, Public Services Building, 276 Fourth Avenue, at which time any person desiring to be heard may appear. DATED: June 28, 1994 Beverly A. Authelet City Clerk Jþ ~J ~ ~~f? ~nI': ~ -- --~~ "~~ CllY OF (HULA VISTA OFFICE OF THE CITY CLERK TELEFAX COVER LEITER Telecopier No. (619) 585-5612 DATE: I::. ) '2.'i J CfJ: / I TO: Star News Le2al / Sue FAX NO: (619) 426-6346 FROM: ~ (' o..~L: il' ¡ SUBJECf: PM-~ \ ~ ð ~~ : . " ~ ¡:St. '. & ) TOTAL NO. PAGES (including cover): ""Z- PUBUCATION DATE: ì /'2. J.....¡ I I Ú~ð) If all pages are not received, please caIl Lorna @ (619)691-5041. / 6 ~;2.0 276 FOURTH AVE/CHULA VISTA, CALIFORNIA 91910/(619) 691-5041 : "t_,,",. ," :-.j ~.."',', ,,/ INVOICE & STATEMENT 14367 ....,~f1" ~ T~tar-News Direct Payments to: P.O. Box 1207, Chula Vista, CA 91912 (619) 427-3000 "tl ".. tr Mall Address: 835 Third Ave., Chula Vista, CA 91911 CITY OF CHULA VISTA OFFICE OF THE CITY CLERK 276 FOURTH AVE. CHULA VISTA, CA. 91910 Date: Ace!. No, July 2, 1994 508900 tc RE: NOTICE * PLEASE RETURN ONE COPY OF STATEMENT WITH YOUR REMITTANCE DESCRIPTION INCHES COPIES UNIT , P¡:¡ICE CHARGES BALANCE ..; .'. ",_. CV 04110 , 7/2 , .. .50 *,";':;-';-~---'=--'"--" 8.56 , '29.96 ,Xi1t 29.96 7ji/1 f r¡7JI,~ (lf~C/~~ IJ /).J FORMSO-14 --;:t; , é~ '- " \ CHULA VISTA STAR-NEWS * NATIONAL CITY STAR-NEWS * IMPERIAL BEACH STAR-NEWS --.-------,.------...- - ----------_..----------. Item Meeting Date 17 7/19/94 COUNCIL AGENDA STATEMENT TXTLE: REPORT Update on Solid Waste Issues and outline of Business Terms for Proposed Agreement with John Sexton Contractors for Transfer Station Development SUBMITTED BY: Deputy city Manager KremPlLQ~ Principal Management Assistant Snyde~ REVIEWED BY: City Manager~ (4/Sths Vote: Yes___ No~) At the 5/24/94 meeting, council directed staff to move forward on negotiating a contract for the first phase development of a transfer station with John Sexton Contractors/ Chula vista Sanitary service. This report forwards the business terms which have been agreed upon by Sexton and City staff. These terms, as modified by council input at this meeting, will provide the basis for the draft contract to be brought back for Council consideration. RECOMMENDATION: Conceptually approve the business terms and direct staff to return with a proposed contract no later than 8/2/94. BOARD/COMMISSION RECOMMENDATION: DISCUSSION: Not applicable. This report is a summary of the key business terms included in Attachment A. These terms have been prepared by the City Attorney and have resulted from negotiations with John Sexton Contractors/ Chula vista Sanitary Service (Sexton), City staff and the city's solid waste consultants, Brown, Vence & Associates (BVA). The business terms are consistent with the proposal for solid waste transfer station, materials recovery facility, transfer hauling and landfill disposal services submitted by Sexton in February, 1994 in response to the City's RFP. As a result of that process, as Council is aware, Sexton was found to be the most responsive, qualified and cost effective proposer for the city's solid waste request. The following are key issues in the business terms, along with reference notes corresponding to the attachment: Scope of Work . . . Schedule . . . . . . . . . . . . Sec. V-IX (Pgs. 2-3) Sec. XI (Pg. 5) 1. . . . . . . . The business terms concisely outline the scope of work and schedule which will be required for this project. The scope of work includes the following: /7- / page 3, Item Meeting Date 7/19/94 17 City but the fees will be folded into the tip fee for the transfer station operation. The city will be responsible for the option to purchase the site. The City, however, has reserved the right to terminate the contract at any point. This option is to protect the City in the event that the county system is eventually determined to be the most cost effective alternative, or other alternatives evolve which are not contemplated at this time. In the case where the City terminates this agreement, Sexton would be eligible for reimbursement of costs to date, as stated in the agreement. Sexton's fees are broken into six-month increments of $30,000 each, and the reimbursable consulting services are on a cost basis with no pass-through or additional charge assessed by Sexton for those services. 4. Conditional Iv Exclusive oDtion to ODerate . . Sec. XII (Pg. 5) One of the considerations to Sexton in this agreement is the ability to be able to operate the transfer station facility should the city decide to proceed. This was the fundamental basis of the Sexton proposal which included a total project process from inception to completion and operation. The City, however, chose to segment the project and break it into phases so that there would be more latitude on decision points as to whether and how to proceed prior to making any more substantial financial commitment. For these reasons, Sexton has asked, and staff is supporting the concept that, if the transfer station proceeds, Sexton would have the ability to become the transfer station operator under certain conditions. This option does not preclude the city's ability to name another firm as operator of the MRF or to allow Sexton to subcontract MRF operations. The city has been must be met for following: careful in defining the conditions which this exclusive option, including the o The City must decide, once the transfer station has been permitted, to proceed with the project within an eight-month time period. o The city has not decided to terminate the contract or otherwise pay Sexton the management fee or the reimbursable consultant fees. /7,,:; __.______.,.._._..__~_.._·__~.m.__···__··_·_~_··__·___·_____.__._,___ page 4, Item Meeting Date 7/19/94 17 o The city is completely satisfied with Sexton's performance for this phase of services and Sexton has adequately fulfilled all of its obligations under the agreement. o The city or its agent has proceeded with final design and financing the construction of the transfer station at a designated site. o The city and Sexton have entered into an agreement for additional services with terms and conditions that meet with the City's approval, predicated upon rates that are consistent with Sexton's RFP response submitted in February, 1994. o The City will have the right, unless otherwise agreed to, to establish the fees, the right to set and collect the fees at the scale house, etc. This right may be exercised with respect to construction and operation costs, replacement costs, and a reasonable amount of return on investment made by any party. How this is implemented will depend upon whether or not the City finances and constructs the transfer station, or elects to have Sexton finance and construct the transfer station, and then transfer ownership to the City. The city recognizes that this conditionally exclusive option to operate is an important business term to Sexton. 5. Termination at Citv's Convenience. . Sec. XIII (Pg. 6) To retain city control and flexibility, the agreement ~ontains two important considerations: (1) the City is not making any commitment for any long term operation of the transfer station, and equally important, (2) the city is not making any obligation to commit a specified amount of waste to go through the transfer station over any specified period of time. These are issues which will need to be addressed as a part of any subsequent operational agreements. A key point brought out at several of the prior Council deliberations was that the city should not enter into a "put or pay" contract for the municipal waste stream. In conclusion, the city feels that the contract has been negotiated in good faith by all parties and that the City has minimized its risk and continued' to provide the Council with the greatest latitude to pursue alternatives and options as they may become available. Finally, by undertaking this transfer station process the City has not made any commitment as to the ultimate disposal of 17- 'I I Attachment "A" Outline of Business Terms of Agreement with John Sexton Contractors Company for Site Selection, Permitting Services and Conditionally Optional Transfer Station Operating Agreement I. Recitals. A. Whereas, Sexton is willing to assume the risks that the City may abandon the Project or may interrupt the Project, and the risk that the profit potential and term of operating agreement will be determined by subsequent agreement with the City. B. Whereas, all risks to Sexton for undertaking the obligations in this Agreement are compensated in this Agreement. C. Whereas, both Sexton and the City are anxious to pursue the transfer station option in an expeditious and efficient manner. II. Effective Date. A. Execution by the last party. III. Parties. A. Sexton B. City IV. Definitions: A. Early Termination: Termination or suspension of the Agreement at any time prior to Primary Compensation Accrual Point. B. Effective Date. Date the Agreement is executed by the last party. C. Facility: A solid waste transfer station in such size and with such capacity as the City shall, pursuant to the procedure set forth herein, require. I /7'7 D. Management Fee: The amount, not-to-exceed $90,000, that shall be reimbursed to Sexton, according to the terms and conditions herein, for Sexton's in-house management costs. E. Optional Facilities: Materials recovery activities that may include materials recovery processing system, serial MRF concept, green waste processing operations, or other forms of materials recovery activities. F. Primary Compensation Accrual Point: 18 months from the Effective Date. The point when the scope of work required of Sexton by this Agreement is scheduled for completion. G. Primary Compensation Duty: The amount equal to the Management Fee plus the Reimbursable Consulting Fees, with a combined total not-to-exceed $340,000, that is payable to Sexton for the completion of services defined in this Agreement. H. Reimbursable Consulting Fees: The amount, not-to-exceed $250,000, that shall be reimbursed to Sexton, according to the terms and conditions herein, to cover out-of-pocket expenses Sexton incurred through consulting services necessary to complete the scope of work defined by this Agreement. 1. Site Selection Date: The date on which the City selects its preferred site and alternative site(s). V. Site Selection A. Eligible Site Criteria. 1. Sexton shall perform a space-needs assessment to establish their recommendations for site criteria not later than 2 months from the Effective Date. The space-needs assessment shall consider the space needs for the transfer station, materials recovery activities, on-site roadways, support facilities, scale house, etc. 2. Sexton shall draft and work with the City to develop site criteria acceptable to, and approved by the City. B. Site Selections Duties. 1. Sexton shall present City with a list of acquirable Qualified Sites, an evaluation of each site with respect to the approved site selection criteria, and a recommendation of the preferred site and acceptable alternative sites. 2 J7"y¡' 2. City shall select the preferred site and alternative site(s). C. Site Control. 1. Sexton shall provide negotiation assistance to the City for the control of the Site by the acquisition of an option on business terms acceptable to the City. 2. City acquires option to the Selected Site at its own expense. VI. Conceptual Design A. Facility Design Criteria. Sexton shall draft and work with the City to develop design criteria acceptable to, and approved by the City. B. Draft Conceptual Design. Sexton shall present a draft conceptual design (based on approved design criteria) that includes a project description, design parameters, and concept design drawings not later than 2 months from the Site Selection Date. C. Final Conceptual Design. Sexton shall incorporate the City's comments of the draft conceptual design and submit a final conceptual design within 2 weeks of receipt of the City's comments. VII. Environmental Review. A. Sexton shall, at their full cost and risk except for the compensation herein permitted, commence and complete such environmental review as may be required by law, subject to City approval of the scope and contents of any or all studies as necessary such as an Initial Study, Negative Declaration, Draft and Final EIR for the Project as defined by the Final Conceptual Design and for the preferred site and alternative sites (if applicable). VIII. Permitting Process. A. At Sexton's full cost (including fees) and risk except for the compensation herein permitted, Sexton shall acquire in the City's name and on the City's behalf, all permits reasonably necessary to construct and operate the Facility (except grading permit and building permits), and shall submit, fully prosecute to the Primary Compensation Accrual Point, and shall complete an application for obtaining a Solid Waste Facilities Permit ("Operational Permit") from the State Integrated Waste Management Board in the City's name. IX. Use Entitlement Process. 3 17..9 A. Sexton shall, at their full cost and risk except for the compensation herein permitted, apply for, prosecute to completion, and use good faith and best efforts to obtain from the City, or any other appropriate jurisdictionally-relevant entity (such as the San Diego Air Pollution Control District, Regional Water Quality Control Board, United States Fish and Wildlife Department, Department of Fish and Game) all land use entitlements required to operate the Facilities at the Site. X. Compensation. A. Costs Elie:ible for Comoensation. I. Manae:ement Fee. Management Fee, as used herein, shall be based on the period of time during which Sexton performed services measured from the Effective Date to the date of the Primary Compensation Accrual Point or Early Termination in the amount as defined by the following schedule: Performance Period up to 6 months 6 to 12 months 12 to 18 months Management Fee $30,000 $60,000 $90,000 2. Reimbursable Consulting Fees. Reimbursable Consulting Fees shall mean out-of-pockets expenses paid by Sexton for consulting services needed to complete the scope of services defined herein incurred during the period of time which Sexton performed services measured from the Effective Date to the date of Primary Compensation Accrual Point or Early Termination. Consulting Fees shall be eligible for reimbursement where consulting services were contracted by Sexton using a standard agreement approved by the City for consulting services which allows, among other things, for a pro rata termination option and approval of the scope of work being contracted for. Sexton shall not be reimbursed for any fees or mark-ups above the direct fee for the consulting services. Periodic project reports shall be submitted by Sexton to the City documenting the progress of the work and performance of the consultants. B. Duty to Compensate Sexton; Right to Defer Compensation to Tipping Fees. If Sexton performs the duties required of them under this Agreement, but City terminates the Project, unreasonably rejects sites reasonably tendered as meeting the site criteria requirements of the City, or unreasonably denies entitlements for the operation of the Transfer Station at the tendered Site, Sexton shall be entitled to, and City shall pay, their Management Fee and Reimbursable Consulting Fees, in a total amount not-to-exceed 4 J 7· /1 $340,000 ("Primary Compensation Duty"), and upon such payment all other and future rights of the parties under this agreement shall terminate. If Sexton performs the duties required of them under this Agreement, and the City grants them the right to operate the Transfer Station by agreement, Sexton shall be granted the right to recover their Management Fee and Reimbursable Consulting Fees, not to exceed $340,000, through the agreed upon Tipping Fee structure approved by the City Council. XI. Schedule of Performance. A. Sexton shall complete the Scope of Services within 18 months of the Effective Date, which date shall be extended as a result of, and in the amount of, unnecessary and unexpected delays caused by the City. XII. Conditionally Exclusive Option to Operate. A. Sexton shall have the right to be the City's transfer station operator at the Site under the following conditions: 1. The City has decided to proceed with the Project within 8 months of the completion of performance of all of Sexton's services required by this Agreement. 2. City has not paid Sexton the Management Fee or the Reimbursable Consulting Fees. The payment by the City of the Management Fee or Reimbursable Consultant Fees and/or termination of this agreement, does not preclude the City from negotiating with Sexton under this conditionally exclusive option or accepting bids from them on transfer station services the City may desire in the future. 3. Sexton has adequately fulfilled its obligations under this Agreement. 4. The City, or its agent, have financed, designed and constructed the Facilities, or a related variant thereof at the Site. 5. The City and Sexton has entered in to an Agreement for additional services with terms and conditions that meet the City's approval and based on service fees or rates provided that the rates are consistent with or do not exceed the rates provided in Sexton's Proposal for Solid Waste Services submitted February 15, 1994. 6. Unless the Agreement above referenced in 5 otherwise provides guidelines for the setting of fees, City shall have the exclusive right to set and collect 5 I?,/I the fees at the Site scale house or elsewhere for the disposal or transfer of solid waste at the transfer station, which fees shall be reasonably calculated to recover the costs to the payors for the planning, funding, design, construction, operation, maintenance, repair, replacement or rehabilitation of the Transfer Station, plus a reasonable amount for a return on the investment made by each party. Any Sexton investment shall be preapproved by the City in order to be considered for compensation through the fees. 7. Sexton shall pay City an operational fee, pursuant to an agreement reached between the City and Sexton, that will permit the City to recover the City's costs incurred by City, not Sexton, in the planning, funding, design, construction, repair, replacement, rehabilitation, or monitoring and reporting of the Transfer Station performed and any in lieu franchise fee. XIII. Termination of Agreement for Convenience of City A. Nothing herein shall be deemed to obligate the City to operate the Transfer Station or any other portion of the Facilities, and City reserves the unfettered discretion to suspend or terminate the operation of the Transfer Station or any other portion of the Facilities. B. Nothing herein shall be deemed to obligate the City to deliver a specified amount of waste to the Transfer Station or any other portion of the Facilities, and City reserves the unfettered discretion to suspend or terminate the operation of the Transfer Station or any other portion of the Facilities. M: \home\attomey\sexton7. wp 6 17"'1';" ~/7 MEMORANDUM July 14, 1994 VIA John D. Goss, Mayor and City Cou~f~~ City ManagerJG. ,~\ , Deputy City Manager &\~ TO The Honorable FROM George Krempl, SUBJECT : Billing Insert Regarding Changes in Refuse Rate -_.........-'-"~- At the 7/12/94 meeting, Council approved a pass through of the increase from $43/ton to $55/ton in landfill fees that went into effect at the County landfills on 7/1/94. As part of that action, Council directed staff to prepare a billing insert to help explain to the public the rate increase as well as the City's efforts to help stabilize the rates in the future. The attached draft was prepared with input from the City's Public Information Coordinator, Conservation Coordinator and Laidlaw staff. Comments or suggested changes on the draft can be forwarded to the City Manager's office or brought up under the weekly discussion of solid waste issues at the 7/19/94 meeting. Following the receipt of those comments, the insert will be prepared for distribution around 7/22/94. /)-/3 C"" ~~'~,.!' ,'~' FT ,~ " . ~J\ ..., "",~,, . , ,if; ~;,::;:~'.r...c - -. . ," . ;I-~" fi~ t't..l"6 July 22, 1994 To Chula Vista Residents: The City of Chula Vista is seriously concerned about the high cost of trash disposal In San Diego County. Since the City does not set the rates, we are actively moving ahead with a plan to provide more control over rates, the lowest rates possible, and long-range stability in rates. Because of a recent increase In the rates at the County landfills, you will notice some changes in this bill. These are some answers to questions we think you may have about the bill. If you have other questions, PLEASE CALL LAIDLAW AT 421-9400. a. My bill is different this time... what are the changes? A. Two changes are reflected in this bill. First, the billing period is changing from every three months to every two months, which means this bill is for service in July and August 1994. The billing frequency will change from four to six times a year. The second change is an increase in your monthly cost which is solely a result of a raise in the charges to dispose of your trash at the County landfill. For example, the rate for a single-family household for once-a-week refuse and recycling service is changing from $14.43 to $16.17 a month. a. Who receives the money collected from this increase? A. None of the revenue from the increase will be received by the City},and Laidlaw will be paying all of the increase directly to the landfill operator to cover the increased charges at the landfill. a. Can I do anything to help keep these costs down? A. YES! The most effective way you and your family can help keep the rates down is to REDUCE, REUSE¡ and RECYCLE. The City offers an easy way to recycle through curbside collection. If you want to know more about recycling and composting, call the City's Conservation Coordinator at 691-5122. John D. Goss, City Manager /7-/Y Z: þ( cær yJ rh; \ G-'o yY\ , ~ rh ÝI / c..-;....V\./ /{.V 10$ fn 5"1 ;1 .j.--rt<,Y fro f0.$ "1-/ ~~/? Page 25 6.2.2 TECHNICAL COMPONENT FOR MATERIALS RECOVERY FACILITY dt;h; Ihf.r- 1. PROCESSING FACILITY The anticipated start-up date for operation of the Materials Recovery Facility (MRF) is 1998. The Company understands, however, the development of the MRF is at the City's discretion and may never become part of this project. If constructed, the MRF may be located adjacent or close to the transfer station building and be at least 30,000 sq. ft. in area. The MRF will utilize mechanical and manual,positive sorting. Tipping may still occur in the transfer building, however, conveyors may transfer waste into the recovery building for sorting. Wastes not recovered in the processing building will be conveyed back to the transfer building for compaction and transfer to the disposal facility. The MRF will include a bale storage area where processed recoverables are baled and stored for future transport as well as a load--out area for shipping material bales to their respective markets. 2. PROCESSING METHODS AND PROCEDURES Below is a conceptual process description of the MRF. Absolute numbers of process lines, conveyors, and equipment may vary with final design and diversion rates required. After weighing in, each vehicle will be directed to a specific location in the receiving area of the transfer facility; wood and construction debris to the first conveyor, residential waste to the third and fourth infeed conveyors, and commercial and industrial wastes to infeed conveyors 2, 3 and 4. Customers having to unload by hand will be directed to unload next to the cross COJ;lveyor that feeds incline section of infeed conveyor 2. Unprocessable waste, such as sewage sludge, inserts and any special waste that may be accepted will be sent directly to the landfill for unloading and disposal. The waste sent directly to the landfill for disposal will not be accounted for as waste received at the recycling facility for the purposes of calculating the recovery rate. /7 -IS: Page 26 Each load, as it is dumped, will be inspected by a floor spotter. The floor spotters will be specially trained to identify potentially hazardous materials. An effort will be made to determine the origin of any industrial/commercial generated hazardous material and, when possible, that material returned to the generator. In accordance with federal and state regulations, hazardous materials discovered and removed during the recovery process will be classified, packed and temporarily stored in a properly designed portable storage container for transport to, and disposal at, a licensed hazardous waste disposal facility. The floor spotters, with assistance from the front-end loaders will also sort bulky items such as white goods and pallets for recovery as the material is being spread and pushed into the receiving pits. Because the waste will not be received uniformly through the working day, some material will be stored for later processing. This material may be stockpiled within the building. All of the primary sections of the receiving conveyors will be "live floors" and will be depressed 3' to 5' below the tipping floor elevation to allow for the normal waste surges and storage. The second or inclined section of the infeed conveyors will be chain-driven, rubber conveyors. A wall will separate the receiving area from the processing and finished product storage areas in order to minimize dust and noise in the main processing area of the facility. All sorting or picking conveyors will be of the vibratory type and designed with a variable amount of sorting stations. Sorters will be moved from line to line and from one station to another to accommodate the changes in the waste being processed. Processing Lilie #1 t Construction/demolition (C&D) materi~ ~n~oo~:Zll b;~~rst infeed conveyor by one of the front-end loaders when this recovery line is in operation. Floor sorters, with the assistance of the front-end loader, will remove large, readily salvageable items prior to them being fed onto the infeed line. This material will then be metered by the live floor section of the infeed conveyor onto the conveyor feeding the preshredder. ) 7--)6 Page 27 After being processed by the preshredder, the size reduced C&D material will pass over a finger screen where the minus 2" fraction will be removed, conveyed and stockpiled. This minus 2" material may be inspected and periodically tested as potential feedstock for composting. The overs from the finger screen will be conveyed by picking stations where nonferrous metal, plastic, concrete and miscellaneous trash will be manually removed from the wood fraction. Ferrous metal will be magnetically recovered. Just prior tot being fed into the shredder the material passes through a metal detection field. Large metal objects that might hann the shredder will automatically shut down the infeed system so that the metal may be removed and recovered. The wood will continue along the conveyor for final shredding, screening and stockpiling. The finished coarse wood materials will be sold ,ó!.s a fuel and the fines will be composted. - Processing Line #2 o Cc--- , p~ ('(eA ( I ' Co~/ '>'I ""S The second line has been designed to process primarily dry commercial/industrial waste with high concentrations of old corrugated cardboard (acC). Constructed like the other infeed lines, the first section is a 6' wide live floor, and will be fed from the floor with one of the front-end loaders. Subsequent to the material being fed onto the infeed section, floor sorters will remove large bulky items, such as white goods and pallets. At the second or inclined section, a sorter will remove the plastic bagged waste. The bagged material will be conveyed to a debagger for separation, the empty plastic bags conveyed to a container for storage and the bag contents conveyed back to the infeed section of the third line for further processing. The inclined section of line 2 will feed a 15" trommel screen for the first stage sizing. The trommel will be enclosed with the enclosure externally ventilated to control dust emissions. The overs from the trommel screen will pass by picking stations on a vibrating conveyor for acc removal. Clean wood that has not been removed prior to the material being fed onto the initial infeed section will be removed for processing on line I. The recovered acc will be stored in one of the live floor storage bins under the picking conveyors, that feeds the baling system. The unders from the trommel are screened by a 2" vibrating finger screen, with the overs being conveyed by picking stations on a vibrating conveyor for the removal of recylables /7~1? Page 28 f ------.-- -----...., and/o~de,sirable.0Aluminum cans, glass bottles, PET and HDPE plastics, magazines, and old newspapers (ONP) will be hand picked off the conveyor, while ferrous metal will be magnetically recovered. The aluminum, plastics, magazines and ferrous metals (mostly cans) will be stored in the live floor bins for baling. ONP will be conveyed to a bulk load-out station for direct haul to the mills. Glass will be conveyed to storage bins to await loading and transport to market. If the quality of paper crossing the plus 2" minus 15" conveyor is such that grades of mixed waste paper can be recovered, contaminates, such as film plastic, will be manually removed and the material off the end of this conveyor will be diverted to, and stored in, , one of the live floor bins feeding the baling system, When mixed waste paper is not being recovered, the minus 2" material passing through the finger screen and the material off the end of the overs line will be conveyed to a rej ect load-out station and loaded into live floor trailers. This material will then be trucked to the landfill. Processing Lines #3 & #4 The third and fourth lines are basically similar, except that the primary section of the #4 infeed conveyor is twice as long (80' instead of 40') as the other infeed lines and therefore doubles this line's infeed storage capacity. Both lines are designed to process residential and the commerciallindustrial waste that is not processed through lines I and 2. In order to maintain the highest quality products and maximize recovety, only one basic type of waste will be processed at a time over each of these lines. That is to say that residential waste will not be processed at the same time and over the same line with commercial or industrial waste. When one type of waste is being processed, the other types of refuse will be stored in one of the designated area of the receiving building, The first section of these lines is a 6'-wide live floor and like the others will be fed trom the floor by one of the front-end loaders. Floor sorters working together with the loaders will remove the bulky items and transport them to other areas of the receiving building for storage or processing. At the second or inclined section, a sorter will remove the plastic bagged waste. The bagged material will be conveyed to a debagger for separation, the empty plastic bags /7~/rr ( Page 29 conveyed to a container for storage and the bag contents conveyed back to the infeed section of the third line for further processing. At the end of the inclined section of both lines, the conveyors feed a 12" finger screen. The overs are conveyed on vibrating picking conveyors where oee, ONP, wood and possibly film plastic (if a market exists) are recovered. Material traveling the length of the overs conveyors will follow onto the discard load-out station. The recovered material will be stored in the live floor bins below the picking station in order to be fed into the baling system. The unders from the 12" finger screens are further screened by 2" vibrating finger screens, with the overs being conveyed by picking stations on vibrating conveyors for the removal of recyclables and/or undesireables. Aluminum cans, glass bottles, PET and HDPE plastics, magazines, and ONP will be hand picked off the conveyors, while ferrous metal will be magnetically recovered. The aluminum, plastics, magazines and ferrous metals (mostly cans) will be stored in the live floor bins below the picking stations for baling. ONP will be conveyed to a bulk load-out station for direct haul to the mills. Glass will be conveyed to storage bins to await loading and transport to market. Again, ifthe quality of material crossing the overs conveyors is such that grades of mixed waste paper can be recovered, contaminates, such as film plastic, will be manually removed and the material off the end of the conveyors will be stored in one of the live floor bins feeding the bailing system. When mixed waste paper is not being recovered, the minus 2" material passing through the finger screens and the material off the end of the overs lines, will be conveyed to the reject load-out station. Baling System Recyclable material recovered from the picking lines that is to be baled will be stored on live floors in the storage bins directly below the picking stations. In addition, material to be baled from the drop-off and buy-back areas will be transported in containers and unloaded into the storage bins. The live floors, on request of the baling operator, will deliver, onto a chain driven rubber belt, the material in the bins. The speed of this chain driven belt, which feeds the baler and thus the live floors, is automatically governed by the capacity of the baler. Each type of material baled will be batch fed so that at least a minimum of one bale of each material can be made at a time. / 7 --- /~ Page 30 Forklifts will move the baled material ITom the baler to the bale storage area and stockpile it for shipment. Transportation of the finished products will be scheduled to coincide with the production of full truckloads. Buy-back and Drop-off area Citizens with source-separated materials will be directed to the Buy-back and Drop-off area, where they will place their materials in clearly marked bins. Items that are purchased by the Company will be weighed prior to placement and customers will be paid a posted rate for each commodity. Each full bin will be weighed and the weight recorded prior to it being hauled to respective storage area for further processing and/or shipping. The smaller open-top bins will be hauled and dumped into the larger bins by a standard roll-off truck. Controls " The control system for the material recovery process will use programmable logic controllers (PLC) for each of the four lines. The PLCs will allow for the continuous reporting and recording of the status of each piece of equipment in the materials processing operation. The data file produced ITom the infonnation recorded will be used by the plant maintenance crew to schedule preventive maintenance for each piece of equipment. The PLCs will be programmed for nonnal start-up and shut-down, and for emergency shut-down. The sequence for nonnal start-up on any of the four lines will be to start the last piece of equipment on a line first and subsequently start each piece until the beginning of the line is running. Shut-down occurs in the reverse order of start-up, however there will be an additional time delay to allow each piece of equipment to clear the material it's carrying before stopping. If for any reason, a piece of equipment on a line was to shut-down, without hesitation or delay all the equipment feeding this piece would shut-down. Throughout the plant and along each picking conveyor there will be shut-down buttons or cords to stop the entire system in case of an emergency. Lock-out switches will be located near and for each piece of equipment for maintenance. In addition, each line of the entire system can be locked-out at the central electrical control panel. /7~c20 Page 31 The vibrating finger screens, the trommel, the vibrating sorting conveyors, the reject conveyors and the truck loading conveyors operate at a constant speed. The rate that the material will be fed to the aforementioned units is controlled manually by the first sorter on each line. This individual will be able to adjust the speed of the inclined feed conveyor and the live floor sections of the line, and therefore regulate the amount of material fed to the screens and passing by the sorters. The sort foreman and the lead sorter on each line will be able to communicate by two-way radio with the tipping floor foreman and the loader operators feeding the infeed conveyors in order to better coordinate the overall recovery operation. The Company shall submit the MRF for a continuous, 28-day perfonnance test to demonstrate the material recovery capabilities of the facility. 3. MATERIALS RECOVERED Below is list of possible materials that may be recovered from the transfer station waste stream . POTENTIAL MATERIALS RECOVERED MATERIAL High-Grade Papers Newspapers Mixed Papers Cardboard Glass Tin Cans Aluminum Cans PET Plastics HDPE Plastics Film Plastics White Goods Wood Rocks Concrete Metals Non-Ferrous Metals Ferrous Metals This list is a tentative list that may be phased-in or modified based on material markets and diversion rate needs in the future. J '} -oZ.) Page 32 The MRF was designed with the assumption that the transfer station waste stream were obtained by assuming transfer station waste quantities will be reduced by 20% from the quantities found in Table 2-1, Waste Composition, included in the RFP, due to waste diversion of specific materials prior to delivery to the transfer station. In addition, it was assumed 70% recovery of recyclables from the transfer station waste stream. The Company understands only diverted materials that assist the City in meeting its waste diversion goals may be counted as such unless the Company receives written pennission from the City to count other materials not detennined as devertable under AB939. 4. STATUS OF FACILITY The MRF may be constructed on the transfer station site and will be developed when needed. It will be pennitted as a new material recovery facility. 5. MARKETING STRATEGY A critical element of any materials recovery system is the marketing of the recovered materials. With the recycling mandates of California's AB 939 and the strong recycling movements through out the rest of the West, there is a dramatic increase in the volume of recycables entering the marketplace. This tremendous supply expansion has and will lead to periodic market absorption problems. Only secondary material producers with consistently high quality and grades of recovered products will be capable of moving their material. An ability to efficiently process and recover high grade materials, coupled with an effective capability for material marketing will be essential to successfully meeting the diversion goals. While markets for aluminum have been relatively stable over the years, markets for other materials have been volatile. It is likely that the current instability in paper and plastic markets will continue as programs to recover these materials are implemented faster than markets develop to absorb them. / 7~~d- Page 33 Material recovered at the MRF will be pulled from a mixed waste stream. Most of the waste arriving at the project will arrive in standard compactor vehicles. Compacting waste in a vehicle can cause contamination of paper and other recoverable materials with wet (e.g., food) waste. This could jeopardize the quality and quantity of the material that can be recovered from the waste stream. If markets are glutted, a lower quality recovered material from a mixed waste processing facility may be displaced by cleaner source- separated materials obtained from curbside collection programs. Long-term, well established market relationships, with both domestic and foreign end- users, will assure access into many diverse markets and enable the movement of recovered materials under both favorable and unfavorable market conditions. End-users need to be assured to a constant flow of high-grade secondary materials, and long-term supply in order to establish receiving agreements. Receivers in California that manufacture recycled products with a rninimum 50% secondary content and 10% post- consumer content can enjoy a 40% tax credit for the cost of the manufacturing equipment. 6.2.3 TECHNICAL COMPONENT FOR HAULING SERVICES 1. HAULING METHOD AND PROCEDURES Alternative #1- Railhaul 48' containers will be loaded with the use of AMF AB compactors and transferred from the Chula Vista facility to the Campo Landfill by railhaul along the San Diego & Imperial Valley (SD&IV) Railroad. Intermodal containers, which are manufactured to specifications outlined by the International Standards Organization (ISO), will be supplied by Accurate Industries or equivalent (refer to Attachment 6). Within the transfer station, CAT 950 and CAT 973 front-end loaders will be used to load the refuse into hoppers. The hoppers direct the refuse to conveyors in order to transport the materials into two AMF AB TRANSP AK compactors (model TP-500). During periods when one compactor feed conveyor is shut off during a truck loading cycle, refuse will be directed toward the other hopper. The AMF AB compactors pre-weigh and compact /7-;;23 Page 34 untied bales without the presence of containers. As a result, container damage during loading is virtually nonexistent, which in turn, reduces maintenance costs with respect to the containers. When loaded, each container will contain 37 to 43 tons of refuse based on an average compacted refuse density of 950 pounds per cubic yard. The ISO containers will be removed from the railcars and loaded on a platfonn while being placed against the compactors with the use of container handlers. Prior to being connected to the compactor, the rear container door must be secured open by facility personnel. After each container is fully loaded, the container handlers will then be used to remove the ISO containers from the platfonn so that they may be stacked two high on the railcars. Hawthorne Lift Systems Co. will supply two Caterpillar container handlers. The CAT VIIOOCH (refer to Attachment 6) is capable of handling loads up to 90,000 lbs when stacking two containers on top of each other. The VII OOCH is designed to provide easy mounting of the adjustable spreader, which is comprised of integral support arms extending horizontally from both sides of the carriage neck, providing four-point spreader suspension. The spreader can be adjusted vertically or horizontally to compensate for misaligned loads without moving the equipment. The spreader contains twist locks which attach to the corners of the containers. For safety reasons, a flag on each rear spreader beam signals when the twist locks are in the locked or unlocked positions. '.. .~. Once the ISO containers are loaded onto the railcars, they are held in storage on the railspur until the SD&IV Railroad returns to remove the loaded railcars. The nonnal operating hours of the railroad company are from 12:00 am to 6:00 am. SD&IV Railroad engine(s) will leave the rail yard at 12:00 am. SD&IV will bring an empty set of containers to the transfer station, which will be utilized for the next day's operations, and then pick up the full load for transit to the Campo Landfill. At this time, the full containers will be left along the railspur provided by the Campo Landfill. Campo Landfill personnel will then remove the full containers the following day for disposal within the active filling area. A set of empty containers will then be taken back to the rail yard by 6:00 am. This process will continue from Monday through Saturday. The SD&IV Railroad is a short-line railroad that operates from San Diego south to San Ysidro, then across the Mexican border at Tijuana and east to the town of Tecate. The line re-enters the United States near the town of Campo and crosses the Campo ) 7-c2 L/ "'-' ,-"'0';."_",-,.""",-" :¡~~~,::m_: -:-~:,}i:>-'" ~i,i::?: CITY COUNCIL AGENDA STATEMENT SUBMITTED BY: Item Meeting Date 07/19/94 Resolution / 'l f? ~irecting staff to prepare an application to the Economic Development Administration, U.S. Department of Commerce, for funding the Border Environmental Technology Resource Center and the Border Environmental Business Cluster (Incubator Program); directing staff to pursue related endorsements, matching grants and contributions; and accepting the updated BECA Project Plan Community Development ,Ð~rector ( S \ City Manager ~ ~ ~ì U (4/5ths Vote: Yes _ No X) Council Referral No. N/A Ir' ITEM TITLE: REVIEWED BY: BACKGROUND: As noted in the April 7, 1994 staff report, staff is and has been evaluating the feasibility of preparing an application to the Economic Development Administration (EDA) for funding of two Border Environmental Commerce Alliance (BECA) initiatives, i.e. the Border Environmental Technology Resource Center (BETRC) and the Border Environmental Business Cluster (BEBC) -- the environmental business incubator program. This application is being prepared in partnership with the City of San Diego and within the umbrella of the existing EDA-funded San Diego regional economic adjustment program, which is, in turn, in partnership with the State of California. As an element of this regional program, the application will require the endorsement of the newly formed San Diego Technology Council which oversees the San Diego $5.8 million EDA economic adjustment program and Regional Technology Alliance, (see Exhibit A (pg. A-I), Tech Council Membership and Programs) as well as the endorsement of the City of San Diego. Funds would be requested under the Sudden and Severe Economic Dislocation (SSED) EDA program, which is based upon the loss of defense-related companies and employment, and requires one dollar of local match for every three dollars of EDA monies. The match can be in-kind or cash; the higher the cash amount, the more competitive the application. Staff is recommending that the City seek both cash and in-kind matching funds from several sources as explained herein, including from the City itself. The EDA draft Pre-proposal was submitted to the local EDA representative on June 30 for initial review and comment. (See Exhibit B [pg. A-9]. NOTE: Attachment A of Exhibit B, titled San Diego Economic Adjustment Program Report, is available for review in the office of the City Clerk or Community Development Department.) If it is determined to proceed, a formal Pre- Proposal is due late August/early September. The goal would be to obtain a request by EDA to submit a formal Application; if successful, we would hope to submit by early October to compete for FY 94/95 Federal funds. 1lJ'''' / Page 2, Item -.lL Meeting Date 07/19/94 RECOMMENDATION: That Council adopt the resolution which would authorize staff to: (I) continue discussions with EDA regarding the feasibility of submitting an application to the Economic Development Administration, U.S. Department of Commerce in an amount to be determined, and to prepare such a formal application as appropriate; (2) request up to $100,000 from the State Defense Adjustment Matching Grant Program; (3) identify potential City of Chula Vista matching monies; (4) pursue the donation from Rohr, Inc., of a building and/or land for the combined BETRC and BEBC; (5) pursue the potential of Port District matching funds; (6) submit the EDA proposal to both the San Diego Tech Council and San Diego City Council for formal approval; (7) develop a proposed BETRC and BEBC Advisory Board; and, (8) accept the attached updated BECA "Project Plan" in concept. BOARDS/COMMISSIONSRECOMMENDA TION: The Economic Development Commission endorsed the BECZ (now BECA) program, including the development of an environmental technology resource center and environmental business incubator on August 4, 1993. On July 6, 1994 the EDC recommended that Council direct staff to pursue the development of an EDA application--to fund the BETRC and BEBC--and related endorsements and matching contributions (vote 5-0-2, with Brene Patrick and Liz Lebron absent; 2 vacancies), see draft excerpt of Minutes, Exhibit C (pg. A-69). DISCUSSION: Scone of Proposal The draft EDA Proposal, including the draft proposed budget, is provided as Exhibit B. The proposal calls for the development of a Border Environmental Technology Resource Center (BETRC) and a Border Environmental Business Cluster (BEBC) incubator program. These are summarized below: A. Border Environmental Technolo!1:v Resource Center ŒETRC) The proposed BETRC will act as a "satellite center" to the EDA-funded San Diego High Tech Resource Center, providing general technology based services from a location convenient to South Bay businesses, and specializing in the environmental technology field. As the resource center focusing on the environmental industry, the BETRC is proposed to become the source for state-of-the-art environmental technology education, information, training, technical, financial and export assistance, environmental regulatory compliance assistance, and procurement assistance for the Southern California and San Diego business community. The BETRC is also proposed to provide specialized assistance to the environmental industry as relates to the international market, with the major emphasis on Mexico. A full description of the proposed BETRC activities is provided in Section 4.1 of the" Border Environmental Commerce Alliance Project Plan" (see Attachment E of EDA draft Pre-proposal, Exhibit B [pg. A-19]). /~".:L Page 3, Item /?, Meeting Date 07/19/94 B. Border Environmental Business Cluster ŒEBC) The Border Environmental Business Cluster (BEBC) is the proposed incubator program which will serve as a launching pad for start-up businesses focusing on environmental technologies, approaches to sustainable developments, and environmental efficiency. The Cluster will provide inexpensive shared space, services, staff and equipment as well as a network of business development support services, both on- and off-site. The BEBC is described in more detail in Section 4.2 of the BECA "Project Plan", (see Attachment E of EDA draft Pre-proposal, Exhibit B [pg. A-19]). C. Proiect Location/Facilitv Needs The two programs are proposed to be co-located in a 15-25,000 sq. ft. facility. If EDA funding is used for buying, leasing or improving the facility, an EDA requirement is triggered which would require the City to operate the program for approximately 15 years or to return all EDA funds. Therefore. it is proposed that EDA funds be used for operatinll costs onlv and that a facilitv be located that can be donated. or made available at an acceptable cost to the city. Staff is currently negotiating with Roh£. Inc. regarding the donation of a building and/or land. Specifically, Rohr has identified a 24,000 sq. ft. vacant office building that could be made available, subject to terms of an agreement with the City. It is critical that we reach an agreement on this (or another building) in the immediate future in order to meet EDA application time frames which require a formal proposal by late August. D. Prollram Administration The draft pre-proposal requests EDA funds for BETRC and BEBC staff to include a total of seven (7) professional and two (2) clerical. The BETRC program is proposed to be administered by the Southwestern College Small Business Development/International Trade Center, under contract to the City, administered by the City's Community Development Department. The BEBC will initially be developed by a team consisting of the City, the California Business Incubator Network (CBIN) , and Business Cluster Development (BCD), and managed by CBIN as the Interim Non-Profit administering agency. (Note: Council previously approved an MOD with CBIN and related contract between CBIN and BCD to develop an environmental incubator program. The EDA grant opportunity will require that CBIN and BCD modify their performance schedule to expedite preparation of a Business Plan to meet EDA timeframes. They are willing to be flexible in this regard; we may need to revisit the related MOD and contract at some point to modify terms accordingly.) The recommended goal is to create a permanent non-profit to oversee the BEBC and potentially the BETRC as well--under the direction of a privately-based Board of Directors, and subject to program guidelines as established by the City, the San Diego High Tech Council and the EDA. It is important to note that the EDA grant is for a period of two to three years. As proposed, there is no obligation for the City to continue the programs after that time. It would be the intent to structure the BEBC in an ultimately self-supporting fashion. In terms / y., .:J Page 4, Item J 8'" Meeting Date 07/19/94 of the BETRC, it should be understood that this may prove to be more difficult, and continuation of the BETRC program beyond the EDA funding period may be contingent upon the successful pursuit of additional federal funds -- EDA or non-EDA. Staff cannot guarantee the availability of such funds. E. Program Partners The BETRC and BEBC programs are designed to act as an extension of the existing San Diego region economic adjustment activities currently funded by EDA, as well as to support and link into State activities. As mentioned, the BETRC will be a satellite of the San Diego High Tech Resource Center, providing near-by assistance to SouthBay businesses. As part of the High Tech Resource Center network, the BETRC will be in partnership with such groups as the Center for Applied Computer Technologies at City College, the Supercomputer Center, UCSD Connect, and the new EDA-funded World Trade Center. Additionally, as the new resource center specializing in Environmental Technologies, the BETRC will work closely with Cal EPA, benefitting from the Agency's Environmental Technology Clearinghouse and pollution prevention training programs, for example. The BETRC will also tie into Cal EPA and California Trade and Commerce Agency environmental technology export assistance programs, including linking US companies with Mexico government and corporate clients. The BETRC will work hand-in- hand with the Southwestern College Small Business Development and International Trade Center. Another important partner will be Scripps Institute of Oceanography/UCSD CONNECT, which will bring extensive environmental research related and technology transfer resources to BETRC entrepreneurial clients. PrOlITam Budl!et The proposed budget currently is in its initial stage of development and will be reworked and refined over the next two to three months in conjunction with proposed partners and with EDA staff prior to formal application submission to Council and subsequently to EDA. The first draft budget as submitted to EDA (Exhibit B [pg. A-9]) has already been revised per EDA feedback. The current version has been separated into two budgets (see Exhibits D and E [pg. A-7I and A-73]). Exhibit D will be submitted to EDA. Exhibit D shows a total three year EDA request of $2.65 million, with a cash match of $407,300 and total in-kind/cash match of $1. 12 million. The cash match is contingent upon receipt of a state Trade and Commerce Defense Adjustment Grant of $100,000. Exhibit E reflects costs that will need to be absorbed by the City and will not be included in the EDA budget to avoid triggering the 15 year program commitment. As indicated, Exhibit E separates out facility related items and is intended to illustrate the potential cost to the City of these items as the EDA application is currently structured. It assumes a donated building from Rohr, and shows a potential range of costs to lease the Rohr- owned land for the 2-3 year period of the grant, i.e. from zero cost to a high end cost of $34,500 year ($103,500 for 3 years). Additionally, the donated building would need cosmetic improvements and potentially significant repairs at a cost ranging from $80,000-$115,000 (one- time Year I costs); therefore, this budget illustrates a potential total cost to the City of up to 18~~ Page 5, Item Meeting Date 07/19/94 I~ $215,000 for 3 years. The actual cost is subiect to negotiations with Rohr and/or the , identification of a less costly site. Proposed in-kind matches identified in the EDA budget (Exhibit E [pg. A-73]) include services from Cal EPA, Cal Trade and Commerce, California Energy Commission, Southwestern College, Chula Vista staff, and UCSC/CONNECT. The proposed budget includes cash and in- kind matches which exceed the grant match requirement. However, it is important to note that: 1) as expenses are refined, they may increase; 2) the cash match is less than the total match requirement; the more cash, the more competitive; and 3) the overall budget assumes contributions which have not yet been finalized (particularly the landlbuilding donations and the State grant). Annlication Endorsements/Timeframes As previously mentioned, the newly formed San Diego Technology Council, which is overseeing the regional economic conversion programs recently funded by EDA, must endorse Chula Vista's application for funding to indicate regional support for the proposed activities. The Tech Council is staffed by City of San Diego Economic Development Services with whom Chula Vista staff have been working closely. San Diego Economic Development Services staff will be recommending that the Tech Council approve the BECA, BETRC and BEBC programs and the related EDA application in concept at the first scheduled Tech Council meeting July 14, 1994. Subsequent to approval of the resolution proposed herein by the Chula Vista City Council, and formalization of the EDA application, staff will be returning to the Tech Council for formal endorsement. Additionally, our application will go before the City of San Diego City Council for their endorsement. San Diego will be a co-applicant, and again, EDA is looking for regional support and linkages to the programs which they have already funded. As indicated, discussions are on-going with Rohr regarding the donation of land, building and equipment. Discussions are also on-going with the state Trade and Commerce Agency regarding the Defense Adjustment Matching Grant. All indications are very positive; a formal application must be submitted as soon as possible. Overall tentative timeframes for submissions and approvals are as follows; I. Draft Pre-Proposal to local EDA June 30 (Exhibit B) 2. San Diego Technology Council July 14 (endorsement in concept) 3. San Diego City Council August 1 (endorsement in concept) 4. Second draft Pre-Proposal to local EDA August 1 / r.. f' Page 6, Item J Y' Meeting Date 07/19/94 5. Return to Tech Council and San Diego City Council for approval of formal proposal 6. Formal Proposal to local EDA 7. Formal Proposal to regional EDA 8. Final Application to Washington August - to be determined Late August mid September October I FISCAL IMPACT: The EDA Draft Pre-proposal budget is being submitted to Council in its Draft stage to advise Council of staff direction and seek input as appropriate. It must be stressed that the budget will continue to be modified based upon EDA and other BECA partner input, as well as related negotiations with Rohr (or other property owners). A Formal Application and Budget needs to be submitted to EDA by late August/early September 1994. As currently structured, the draft EDA budget, Exhibit D, requests $2.6 million from EDA and $100,000 from California Trade and Commerce Defense Adjustment Matching Grant. It also shows a $17,500 cash match from Chula Vista which reflects the previously recommended $10,000 in FY 1994/95 funds for SDEDC and $7,500 from South County EDC - which would be targeted for marketing of the BECA programs in Chula Vista. The related facility-oriented budget, Exhibit E, illustrates currently identified potential costs to the City (which would not be included in the EDA application to avoid triggering a 15 year program requirement). Exhibit E shows a range of $80,000 to $215,000 as the total cost to the City during the life of the grant. As previously indicated, actual costs depend upon negotiations with Rohr or the location of a less costly site. As discussed above, it is important to note the proposed EDA funding is for a period not to exceed two to three years. As proposed, the application does not commit the City to operating the program beyond that time. (If EDA funds were used for the building, land, or capital improvements, EDA would require a 15 year commitment; if not fulfilled EDA could require all funds to be returned). It would be the City's intent to structure the BEBC incubator as an ultimately self-supporting project. The BETRC could be viewed as a Demonstration Project; due to the type of services proposed, it would likely be more difficult to structure it in a self- supporting manner. However, it is possible that following a proven track record, additional Federal funds could be pursued from EDA or other public or private sources. Finally, it should be reiterated that the final formal application with related budgets and City contributions will be brought back to Council for approval. [DYEIDISK#2IEDA.113] ATIACHMENTS: EXHffiIT A - San Diego Technology Council and Regional Technology Alliance (pg. A-l>NOT SCANNED ~ EXHffiIT B - "Draft Pre-Proposal as submitted to Mr. Carles Oaks, Economic Development Admmistrator, June 28, 1994" (pg. A-9) ATIACHMENTE TO EXHIBIT B - Border Envirorunental Commerce Alliance (pg. A-19) NOT S·CANN' EXHffiITC - Excerpt from the Minutes of July 6,1994, Economic Development Commission (pg. A-6rfJ:, _' ,. "ED " EXHIBIT D - BElRC & BEBC EDA Application Budget (pg. A-71) NúT SCiiNNED ~ EXHffiIT E - BETRC & BEBC Facility Related Budget (pg. A-73) /Y"I, RESOLUTION 1757'-/ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DIRECTING STAFF TO PREPARE AN APPLICATION TO THE ECONOMIC DEVELOPMENT ADMINISTRATION, U.S. DEPARTMENT OF COMMERCE, FOR FUNDING THE BORDER ENVIRONMENTAL TECHNOLOGY RESOURCE CENTER AND THE BORDER ENVIRONMENTAL BUSINESS CLUSTER (INCUBATOR PROGRAM); DIRECTING STAFF TO PURSUE RELATED ENDORSEMENTS, MATCHING GRANTS AND CONTRmUTIONS; AND ACCEPTING THE UPDATED BECA PROJECT PLAN WHEREAS, Council has directed staff to establish a Border Environmental Commerce Alliance (BECA); and WHEREAS, the purpose of such an alliance is to assist and promote environmental product and service businesses, to support the development and commercialization of environmentally sustainable technologies, and to attract and incentivize companies utilizing environmentally friendly processes through successful public/private regionally-based partnerships; and WHEREAS, the BECA includes three Chula Vista initiatives including: (1) Border Environmental Technology Resource Center (BETRC); (2) a Border Environmental Business Cluster (BEBC); and (3) a Border Environmental Technology Demonstration Area (BETDA); and WHEREAS, on April 7, 1994 Council authorized staff to develop the BETRC as a satellite to the San Diego High Technology Resource Center and to seek City of San Diego endorsement for the program, as well as to work with the City of San Diego to seek Federal Department of Commerce Economic Development Administration (EDA) funding to augment San Diego's existing EDA-funded Regional Economic Conversion Program. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA does hereby fmd, order, detennine and resolve that staff is authorized to prepare an application to the U.S. Department of Commerce Economic Development Administration for funding the Border Environmental Technology Resource Center and the Border Environmental Business Cluster and to pursue related endorsements, grants, and contributions; and, that Council accepts the updated BECA Project Plan Overview dated July 8, 1994, recognizing that same will continue to evolve to reflect program development. PRESENTED BY: APPRO ED AS TO FORM BY: [C:IWP51ICOUNCILIRESOSIBElRC.RES] Bruce M. Boogaard City Attorney 18"7 jig - Ii Chris Salomone Community Development Director [CONOMIC DEVELOPMENT D ID:236-6512 JUN 17'94 San Diego Technology Council Bnd Regional Technology Alliance June, 1994 Mr. John Belden City CEO Octus 9940 Barnes Canyon Road San Diego, CA 92121 (6191462-9400 FAX(619)457-7763 I\IIr. Tom Behr County McDonald, Hecht & Solberg 600 West Broadway, Suite 800 San Diego, CA 92101 239-3444 8:07 No.007 P.02 EXHIBIT "A" Dr. Allen Brooks Community College District Vice Chancellor San Diego Community College District 3375 Camino del Rio South San Diego, CA 92108-3883 (619)684-6939 FAX(619)584-6541 Dr, Ernesto Corte City Gamma Metrics 5788 Pacific Center Blvd. San Diego, CA 92121 ( 619)450-9811 FAX(619)452-2487 Dr. Ed Fertek UCSD UCSD 9500 Gilman Dr. La Jolla, 'CA 92093-0007 (619)534-3135 FAX(619)534-6523 1 V /ð~C¡ ECONOMIC DEVELOPMENT D ID:236-6512 JUN 17'94 8:08 No.007 P.03 Mr. Joe Francis Executive Secretary of Treasury AFL-CIO C.entral Labor Council 4265 Falrmount Ave. San Diego, CA 92105 (619)283-5411 FAX(t;i19283-2782 Labor Mr, Art Goodman President CDC Small Business Finance Corporation 6353 Mission Center Rd. Suite 218 San Diego, CA 92108 (619)291-3594 FAX(619)291 -6954 CDC, Small BUliinesli Mr. Dan Pegg President San Diego Economic Development Corporation San Diego, CA 92101 (619)234-8484 FAX(6191234-1935 S.D. Economic Development Corporation Ms. Sharon Hudnall Director Fedaral Laboratory Consortium 6373 Lambda Drive San Diego, CA 92120 287·9041 212-9452 Federal Laboratory Consortium Mr. Mel Katz Manpower 101 Wast Broadway Suite 1400 San Diego, CA 92101 (6191237-9900 FAX(619)237-9981 Private Industry Council ~ ~ I?'/O ECONOMIC DEVELOPMENT D ID:236-6512 Dr. Donald Kerr Corporate Executive Vice President SAIC ,1241 Cave Street La Jolla, CA 92037 (619)546-6656 FAX (619)546-6165 Dr. Gloria Ma Chief Technical Officer XXSYS Technology Inc. 46,19 Viewridge Ave. San Diego, CA ,92123 (619) 974-8200 FAX(619)974-8208 JUN 17'94 City' City Dr. Frank Mederìos SDSU Associate Vice President for Academic Affairs 5300 Campanille Dr. Sen Diego. CA 92182-0711 (619)594-6883 FAX(619594-474 Mr. Tom Morgan Principal The Ayres Group 750 B Street, Suite 1142 San Diego, CA 92101 (619)696-6896 FAX(619)696-686B Mr. Mark. Nelson Governmental Affain; San Diego Gas & Electric P.O. Box 1831 San Diego. CA 92112 (6191696-2000 FAX(619)696-1814 5DSU 8:08 No.007 P.04 Greater 5.). Chamber Commerce SDG&E x }V5/g'/// ECONOMIC DEVELOPMENT D ID:236-6512 JUN 17'94 8:09 No.007 P.05 Mr.. Bob Plotkin World Trade Center President World Trade Center 6363 Greenwich San Diego, California 92122 (619)453-4605 FAX(619)453-1907 Dr. Gene W. Ray City CEO Titan Corporation 3033 Science Park Road San Diego, CA 92121 (619)552-9500 FAX(619)652-9645 Mr. Richard Shearer Navy Labs Executive Director Naval Command, Control & Ocean Surveillance Center, Research, Development, Test & Evaluation Division 53560 Hull Street San Diego, California 92152-6001 653-3010 Mr. Rohit Shukla Ex-officio Los Angeles Regional Technology Alliance 6922 Hollywood Boulavard #416 Los Angeles, CA 92108 (2131462-5111 FAX(213)462-2228 Dr. Harvey White City QUALCOMM 10666 Sorrento Valley Road San Diego, CA 92121 (619)587-1121 FAX(619)452-9096 ì( r /?--/~ ECONOMIC DEVELOPMENT 0 10:236-6512 Dr. Ken Widder Chairman and CEO Molecular Biosystems 10030 Barnes Canyon Road San Diego, CA 92121 (619)452·0681 FAX (619)452-6187 Mr. Richard Vortmann CEO National Steel & Ship Building Company 2798 Harbor Drive 'SlIn Diego, CA 92113 (619)544-3400 FAX(619)544-354 JUN 17'94 City City x ¡J_~ 7 If!~/3 8:09 No.007 P.06 _SD CNTY BRD OF SUPRVRS TEL No .619-557-4025 Jul 7,94 14:58 ND.008 P.02 COMMITTEE: sAN DIEGO TECHNOLOG~ COUNCIL CONTACT PERSON: GONZALO LOPEZ WORK PHONE: 236-6551 COUNTY DEPARTMENT: CITY OF SAN DIEGO MS: 10151& I , NAME: BEHR, THOMAS L. '1115 ADDRESS: 600 WEST BROADWAY. 8TH 'LOOa.SAN DIEGO 92101 HOME PHONE: WORK PHONE' 23~-3444 APpoINTMBNT DATE: 5/17/94 (43) TERM EXPIRATION: 5/17/97 NOMINATED BY: DISTRICT 3 APPOINTED BY BOARD OF SUPERVISORS REQUIREMENT: STATISTICS: / H/ OATH CARD: RQ FORM 730: CIA: FORM 519: COMMENTS: - N~: VACMov~f'~- ADDRESS: , HOME PHONE: WO~~NE: APpOINTMENT DATE: 1f1' RM ,EXPIRATION: NOMINATED BY: DISTR CT 1 APpOINTED BY: BOARD OF SUPERVISORS REQUI~: . STATISTXCS : ' / I OATH CARD: RQ FORM 730: CIA: FORK 519: COMMENTS: NEW 4/19/94 (39) - POSTED VACANCIES NAME: vACANCY fl117 ADDRESS: . HOME PJtONE: WO!UC PHONE: APPOINTMENT DATE: TERM EXPXRATIONI NOMINATED BY: DIS'l'RICT 2 APpOINTED BY: BOARD OF SUPERVISORS REQUIR&MEN'l': STATISTICS: / / OATH CARD: RQ YORK 730' CIA: FORM 519: COMMENTS: NEW 4/19/94 (39) - POSTED VACANCIES NAM);:: VAcANCY 111118 ADDRESS: . HOME PHONE: WORK PHONE: APPOINTMENT DATE: TERM EXPIRATION: NOMINATED BY: DISTRrCT 4 APPOINTED BY: BOARD OF SUPERVISORS REQUIREMENT: ST"TISTICS; / / OATil CARD: ao FORK 730: CIA: FORM 519: COMMENTS: NEW 4/19/94 (39) - POSTED VACANCIES NAME 1 VACANCY{uM ~-u.t. 11119_ ADDRESS: . l!SU s.-..~ "no.A."-"'~-<J--, Sc~",-- )~....,c."-<1 HOME PHONE: KORK 1'1I0NEI ?S".;¡- </øqr;> APPOINTMENT DATE: 'I-tI"'''rERM EXPIRATION: NOMINATED' BY: DISTRICT 5 APPOINTED BY: BOARD OF SUPERVISORS REQUIREMENT: STATISTICS; I / OATH CARD: RQ FORM 730: cIA: FORM 519: COMME~TS, ~EW 4/19/94 (39) - POSTED VACA~CIES (~,n 9íl'~vr;. -. ~)Oð I < I 5/24/94 - fa"". (Z$j \ -' ~ 9,09 am /o~/~ i SAB DIEGO TECHBOLOGY COUNCIL PROGRAMS I SAN' DIEGO TECHNOLOGY COUNCIL HIGH TECH REGIONAL RESOURCE TECHNOLOGY TECHNOLOGY WORLD TRADE SEED CAPITAL CENTER INCUBATOR ALLIANCE CENTER FUND CORPORATION San Diego Community San Diego Community UCSD "- College College College of Extended Studies World Trade CDC Small Busines5 and Public Service Association Finance CorporaÜon CACT- CACT- Economic Development Corporation SDSU "" Colkge of Extended Studies San Diego Supercomputer Center San Diego Unified Port District UCSD CONNEcr San Diego Consonium & PrIvate Industry Council · Center for Applied Competitive Technologies Federal Lab Commission P/ff//J EXHIBIT "B" "Draft Pre-Proposal as submitted to Mr. Charles Oaks, Economic Development Administrator, June 28, 1994" pst /2"//7 Border Environmental Commerce Alliance DRAFT June 28, 1994 Preliminarv Title IX SSED Grant Proposal Border Environmental Commerce Alliance Proponent: Contacts: City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Ms. Cheryl Dye Economic Development Manager (619) 691-5047 Co-Applicants: City of San Diego Economic Development Services Security Pacific Plaza, 1200 Third Avenue, Suite 1620 San Diego, CA 92101-4199 Mr. Kurt Chilcott Director, EDS (619) 236-6550 Southwestern College 900 Otay Lakes Road, Building 1600 Chula Vista, CA 91910 Ms. M:uy Wylie Dean, SBDC/Intemational Trade Center (619) 482-6391 The Dislocation During the last two years, the hugest San Diego region defense industIy employers (General Dynamics and Rohr Industries) have reduced their -combined local employment by 10,000, from 25,000 to less than 15,000. In Sari Diego South County, Chula Vista's Rohr Industries accounts for over 2,500 of these losses. Total San Diego area aerospace defense manufàcturing employment dropped by 7,500 during 1993. Martin Marietta recently purchased General Dynamics Space Division, will result in the San Diego region losing another 1,800 direct jobs and additional subcontractor jobs. General Dynamics is attempting to sell their aircraft component manufàcturing business, a sale which would likely reduce local employment by more than 2,200 jobs. The combination of actua1 and anticipated job losses will exceed 15,000 for these two major employers and will approximate an additional 10,000 for smaller aerospace defense businesses. This loss is anticipated to approach an overall 50% reduction in the aerospace defense industry locally. Rohr Industries is the largest employer in San Diego South County. Like many San Diego companies, Rohr has developed new operations in other states and is likely to consider further expansion outside the state. They have publicly stated in recent months that they plan to keep corporate, research and various other staffs in Chula Vista, but that they will continue to evaluate locating their manufacturing operations in lower cost, less restrictive states. Rohr recently sold corporate debt and is in a good cash position. This can solidify their ability to ride out the downward aerospace cycle. However, this favorable cash position also makes them an attractive acqnisition target. /~J~~/9 Border Environmental Commerce Alliance DRAFT June 28, 1994 Economic Back\!round The Southern California economy has been hit hard by the extended recession, by the end of the Cold War, by resulting downturns in the defense industry and by the collapse of the real estate industry. San Diego South County shares the regional San Diego problem of being heavily dependent upon the defense industry, with little diversification of established manufacturing in other industries. The level of defense industry wolker dislocations has saturated the ability of regional technology manufucturing companies to employee the numbers of technical, managerial and specialized craft wolkers now available. Training programs have been strengthened to help adjust for preparing people for re-employment, but it will take time for existing companies to recover, for start-up companies to expand to absorb the talent, and for new and emerging technologies being developed by new ' entrepreneurs to be successful. San Diego South County needs additional capacity to develop more support for companies and displaced defense wolkers to start and expand private companies that will create jobs. , Relevant Economic DeveloDment Plans and CaDacitv: Funded by the Department of Defense Office of Economic Adjustment, the San Diego Economic Adjustment Program (EAP) surveyed local aerospace~efense industry executives whose companies represented two-thirds of San Diego County's aerospace~efense manufacturing employment. The resulting San Diego EAP report provided a thorough analysis of economic impacts to the region as well as solutions to mitigate these impacts. The U.S. Department of Commerce Economic Development Administration accepted the EAP Report as an Overall Economic Development Plan (OEDP) to support funding for the San Diego Technology Council (SDTC). (See San Diego Economic Adjustment Report, Attachment A) . San Diego's SDTC is, developing capacity to provide technology oriented assistance, business development clearinghouse infonnatiOD, export infonnation and assistance, and general cootrlinmng functions for economic adjustment activity in the region. The San Diego region's economic conversion strategy includes attracting high-value industries, retaining existing businesses, helping defense dependent businesses to transition to commercial markets, and developing support structure to encourage and assist technology company start-ups and expansions. It also provides training for displaced aerospace/defense wolkers. The local resource partners including educational institutions, federal labs, city agencies, service-based non-profits, and community-based non-profits are positioned to support expanded efforts, including the proposed satellite technology resource center and incubator described below. Partners' capacities and missions are well documented in the San Diego EDA application and in the OEDP referenced above. Activities described in this proposal increase local economic adjustment capacity (1) by geographically extending the influence of current SDTC partners, (2) by adding a specialized environmental industry infrastructure component, and (3) by introducing new USIMe:rlco bDrder related economic incentives to the overall regional economic develDpment effort. Proximity to a new, rapid! y expanding Mexican market and access to internarional environmental technology markets makes this proposal very important and timely. (See Border Environmental Morket, Attachment B) /~ /(1-;(0 Border Envirorunental Commerce Alliance DRAFT June 28, 1994 Adiustment Activities The EDA-funded San Diego Technology Council will act as the focal group to facilitate regional technology transfer, dual technologies, technology commercialization, competitiveness training, high technology business incubation and an infrastructure for international trade. The major existing components of the Technology Council are: High Technology Resource Center, Technology Incubator at the Center for Applied Competitive Technologies, Regional Technology Alliance, World Trade Center and Seed Capital Fund. These components are described in detail in Attachment C. The Department of Defense Office of Economic Adjustment (OEA) is currently funding a follow-up program to (1) publicize existing SDTC services, (2) survey 200 smaller defense dependent subcontractors throughout the County, and (3) conduct focused technology business "cluster" analyses. The San Diego Economic Conversion Council is conducting the public meetings to educate the community about available, local defense conversion/economic adjustment programs. They will continue this information series through the second phase OEA planning project. Their outreach resources are incorporated in the proposed environmental technology programs. San Diego's East County Economic Development Corporation is teaming with San Diego State University and an experienced defense industry market researcher to undertake survey defense subcontractors. The planned 200 surveys include 50 in East County, 50 in South County, 50 in North County and 50 in Central County. The results will be used to evaluate and refine all pertinent economic adjustment program elements, including the proposed environmental technology-related activities. The San Diego Technology Council will oversee technology industry cluster analyses. Environmental, multimedia, and transportation are among target industries which will be analyzed. The results will help to further refine approaches to implementing the environmental business cluster program proposed herein. (See Environmental Industry Cluster Analysis, Attachment D.) The San Diego Consortium & Private Industry Council (PIC) supports the SDTC as the focal point for employment oriented training. A1; the regional administrator for U.S. Department of Labor ITP A funding, the PIC provides a full range of training, support and community assistance services. The PIC recently established a satellite Career Center in San Diego South County (Chula Vista) to provide training and re-employment assistance to workers effected by defense industIy reductions. Local academic institutions have taken a lead role in the SDTC: the University Df California (UCSD) administers the Regional Technology Alliance (RTA) technology transfer structure; the San Diego City College's Center for Applied Competitive Technology (CAC1) is establishing the Technology Incubator. UCSD, San Diego State University and Southwestern College have instituted specific programs focused on training displaced workers to assume new roles in emerging technologies, including manufacturing engineering, environmental engineering, and technical/commercial entrepreneurship programs. In partnership with the California Environmental Technology Partnership (CalETP) [a marriage of CalEPA and the Califomia Trade and Commerce Agency] and the SDTC, the State of California has recently established the California Institute of Environmental Technologies (CIET) at UCSD. CIET will facilitate transfer of environmental research from its own Scripps Institution of Oceanography to entrepreneurs. CIET will also coordinate activities among all University of California campuses, three National Laboratories, industry partners, and business development programs including the proposed grant activities. /fl?/Ý /~c2! Border Environmental Commerce Alliance DRAFT June 28, 1994 Pro Dosed Grant Activities The Border Environmental Commerce Alliance (BECA) is a regional coalition of U.S./Mexico border oriented jurisdictions as well as private and non-profit groups that are allying to encourage the establisIunent and growth of environmental technologies and related businesses within San Diego County. BECA includes the following local governments: County of San Diego, City of San Diego, City of Chula Vista, City of National City, and City of hnperial Beach. BECA is also supported by CalIEPA and the California Trade and Commerce Agency and numerous other public and private organizations. The full listing of jurisdictional, economic development and community-based groups supporting BECA is contained in the Border Environmental Commerce Alliance Proiect Plan Overview. a comprehensive white paper that summarizes the program. (See Attachment E) The pwpose of the Border Environmental Commerce Alliance is to coordinate regional resources that will integrate with and extend the economic development strategies being implemented by the San Diego Technology Council, as well as the State of California, to provide specialized assistance to the targeted, high growth environmental business cluster and to support environmental business assistance efforts, including proposed grant activities. These efforts will support displaced technology workers, assists emerging environmental technology companies, and encourage the development of a sustainable business environment. In addition to directly benefiting displaced workers, the BECA will focus technology development and assistance on environmental problems and opportunities at the U.S.-Mexico border. For pwposes of this proposal, Chula Vista is the lead agency for the San Diego Border Environmental Commerce Alliance. BECA prDposes establishing three major program elements: (I) the Border Environmental Technology Resource Center (BETRC) (2) the Border Environmental Business Cluster (BEBC), an environmental technology business incubator (3) the Border Environmental Demonstration Area This proposal seeks funding for items one and two only. Both programs are directly linked to the San Diego Technology Council program, which is largely funded by EDA. As a Satellite Center for the EDA-funded SDTC High Technology Resource Center, the Border Environmental Technology Resource Center (BETRC) will be physically located in San Diego South County, only seven miles from the Mexico bDrder. BETRC will link South County businesses to all of the San Diego Technology Council resources via electronic databases and systematic coordination among the two Centers' staffs and existing SDTC partners. The satellite location will extend the services of the High Technology Resource Center, Regional Technology Alliance and World Trade Center into the U.S.-Mexico border-<>riented communities. It will also emphasize cross-border partnerships in conjunction with the co-located Southwestern College International Trade Center. Using its environmental technology expertise, BElRC will assist the San Diego Technology Council to identify and fonn environmental business consortia and to seek related State and Federal technology trnnsfer funding. "þ.f( / Y'/;¿J- ...k" Border Environmental Commerce Alliance DRAFT June 28, 1994 In its role as a specialized Technology Center serving the environmental industry cluster throughout the entire San Diego region, BETRC will coordinate specialized environmental industry resources both regionally and in partnership with the Ca1ÆP A and the California Trade and Commerce Agency. BETRC will offer the following services, with an emphasis on international, and particularly U.S.- Mexico, linkages and cooperation: Environmental Technology Infonnation Clearinghouse Environmental Technology Technical Assistance Environmental Products and Services Export Assistance Training in Environmental Industrial Management (cost-effective pollution prevention and waste minimization) Environmental Compliance Assistance Environmental Industry Business Development Assistance This targeted economic development assistance will help to address the following key State, local and national objectives: . To support environmental technology transfer and commercialization/defense conversion strategies, providing job opportunities for displaced worlœrs. · To encourage the eXport of environmental technology/products/services. · To encourage cross-border industries to utilize state-of-the-art environmental management practices · TD promote the remediation of cross border environmental problems. The second program element, the Border Environmental Business Ouster (BEBC), is a technology business incubator that will serve as a launching pad for new environmental technology related businesses. The California Environmental Technology Partnership (CalETP) has designated the BEBC as one of three State-sponsored environmental business incubators in California. Representing BECA, the City of Chula Vista is working with the California Business Incubation NetwOlK and the Business Cluster Development Company to establish BEBC as a non-profit operntion. The Business Cluster Development Company has successfully established similar incubators in Silicon Valley and Los Angeles and will be responsible for policy and facility development, staffing, program mSIketing, and ultimately screening, selecting and assisting incubator candidates and participants. (See Attachment G.) The BEBC will be located in a donated facility. The projected budget includes land acquisition costs, personnel and major support costs. The incubator will provide inexpensive space for twenty or more start-up businesses. The goal over the initial three year period is to graduate a minimum of ten businesses after each has operated eighteen months to two years at the center. These ten companies should provide from 100 to 200 new jobs related to environmental products and services (based upon a goal of 80% survival rate three years after graduation.) BEBC start-up businesses will receive business and technical support from the Incubator Manager as well as from experts at BETRC the San Diego Technology Council and CAL EPA and the Trade & Commerce Agency. Businesses will have access to regulatoxy and clearinghouse infonnation, including technology transfer, government technology programs, World Trade Center export databases and other infonnation netwoIks. ~/J~ / 8'/ JJ ~ Border Environmental Commerce Alliance DRAFT June 28, 1994 A Border Environmental Technology Demonstration Area, is being considered for South San Diego County to promote the U.S.-Mexico border area as a "testing ground" for new financial incentive programs which encourage development of environmentally-friendly technologies and businesses and integration of state-of-the-art, sustainable technologies into business operations. This Demonstration Area is not part of this application for EDA fundin!!. The proposed demonstrarion area encompasses the San Ysidro/Otay Mesa Enterprise Zone (San Diego), the San Diego Foreign Trade Zone and the San Diego Recycling Matket Development Zone, and it will utilize capabilities of the San Diego Technology Council and the BElRC to offer environmental business consulting and training. Proposed Fundin!!: We propose a total program budget approximating $5.2 million over three years. We are seeking about $2.9 million in EDA funding to support this program. We propose obtaining $100,000 State ofCalifomia Trade and Commerce Defense Adjustment Matching Funds for the BElRC, a donated facility from Rohr, Inc., and $100,000 in San Diego Unified Port District funds, as well as substantial in-kind services from our public and private partners. Projected local matching funds exceed $1 match for each $3 sought. ~~ J([/~i . . ~ ! ! ~! ~ c. .... i: !: ~"-;. -,!il'i¡<.> ~.'. . ~.¡¡,~ ,~ Î ~â5P I~ .¡¡ 11 n~I ~ ~.I' ;ï~:I ~ ;:I"~~Š~ ~~i."~~~. 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'¡i3i!~ ili ~~......_" ~ -... 9~"~~~ ~-~ i~!!i::i:ii¡!! =...:{..ç:r;f:'~""""'" .""-gg" ~~g~.....~ ~r~t~o:f::f:;f . ~- . :; .. ~..: 8æg§::~gg58! ~"~i.~ _.. . .,..'¿ ;;.~;. ~~: ~~!~~Ú~¿""M~ ~: M~ ~~~ J "l â }ðf fl. :t! j å ~~ .¡.r ~. - .1 '!j' I!~II''! I! JI~ ! iii Ii i;ii !I ~f fifiiJlffJii i~fjfii :Ii H /0'/.,2/1 H' 'f"! f ; ~ a ~ o . .. "-8 :; a ~ ... . .. UU' HH~ in ::f-g UU! g:i::i:ê -- -~ ~ i ! ¡¡ ¡nø, !'! ~ I ª ~ ~ i!" ~ æ ¡¡ . :f ;¡ š · - § t ~ a Š c "' a " ª " m ~ " · ~ . . '" :$ ~ i ~ ~ .- ~ ;¡ · ¡¡ U¡Ur ~ h ~:1¡ I J'!~ 'ð~~ ~ Ii j¡~H u q ~k~l. !~d~ i~i~ gðoi'J! !ë"~ ~~~~ i~~ ...;i:5 ¡ 'ð~, ð ";3' . ðcH ~ "j .~ i. .e¡ü ATTACHMENT E TO EXHIBIT "B" BORDER ENVIRONMENTAL COMMERCE ALLIANCE Project Plan Overview - A Working Paper- Last Update: July 8, 1994 Prepared By: Environmental Business Partners, Inc. J. Stewart Borie, Managing Partner and Environmental Business International, Inc. Daniel W. Noble, Vice President, Director of Research In conjunction with: City of Chula Vista, Community Development Department and City Manager's Office, Environmental Division ¡pt1 J?-:¿j/¡-r17 " TABLE OF CONTENTS 1. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1. Purpose of this Plan Overview ................................... 1.2. Background. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3. Endorsements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3.1. Participating Jurisdictions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3.2. Economic Development Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3.3. Community-Based Groups ................................ 1.3.4. Academic Institutions ................................... 2. MISSION, GOALS AND OBJECTIVES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.1. Purpose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mission Staternent ..................................... 2.1.2. 2.1.3. 2.1.4. 2.1.5. 2.1.6. 2.2. Goals 2.2.1. 2.2.2. 2.2.3. 2.2.4. 2.2.6. Goals ............................................. BECA Alliance ....................................... Proposed New BECA Initiatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . BECA Funding ....................................... .................................................. . Support Environmental Business and Job Creation. . . . . . . . . . . . . . . . . . Encourage Cross-Border Environmental Commerce and Clean-up and the Attraction of "Clean" Industry to the Border Area. . . . . . . . . . . . . . . . . . Support Defense Conversion Efforts .......................... Encourage the Development, Commercialization, and Export of U.S. Environmental Technology/Products/Services .................... Implement an Environmental Technology Demonstration Program . . . . . . . . 1 1 3 3 3 3 4 4 4 4 4 5 5 7 7 7 8 8 9 9 3. NEED AND OPPORTUNITIES FOR BECA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 9 3.1. Economic Challenges ......................................... 10 3.2. Environmental Industry Growth Potential . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 11 3.3. Industry EvolutionlEnvironmental Management . . . . . . . . . . . . . . . . . . . . . . . .. 12 3.4. U.S./Mexico Border Opportunities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 13 3.4.1. U.S./Mexico Border Environmental Background. . . . . . . . . . . . . . . . . .. 14 3.4.2. U.S./Mexico Cooperation Regarding Border Environmental Problems ..... 15 3.5. Environmental Clean-Up/Public Health .............................. 17 4. BECA INITIATIVES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 18 4.1. Border Environmental Technologies Resource Center (BETRC) . . . . . . . . . . . . . .. 18 4.1.1. Environmental Technology Information Clearinghouse . . . . . . . . . . . . . .. 18 4.1.2. Technical Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 20 / f/'/cl9 -~ TABLE OF CONTENTS 4.1.3. Export Assistance ......................................21 4.1.4. Training in Environmental Technologies/Products/Services . . . . . . . . . . .. 21 4.1.5. Environmental Compliance Assistance . . . . . . . . . . . . . . . . . . . . . . . .. 22 4.1.6. Recruitment of Environmental Industries ....................... 22 4.1. 7. Financial Assistance .................................... 22 4.2. Border Environmental Business Cluster (BEBC - An Environmental Incubator Program ................................................. 24 4.2.1. The Environmental Incubator Program - Need and Concept . . . . . . . . . . .. 24 4.2.2. Proposed Tenants: Demonstration and Commercialization ............ 2S 4.2.3. Incubator Facility Characteristics . . . . . . . . . . . . . . . . . . . . . . . . . . .. 25 4.2.4. Incubator Program Services ............................... 25 4.2.5. Program Development/Management .......................... 27 4.3. BECA Environmental Technology Demonstration Program. . . . . . . . . . . . . . . . .. 27 4.3.1. New Incentive Programs ................................. 27 4.3.2. BECA Demonstration Area Boundaries ........................ 28 4.3.3. Demonstration Area Financial Assistance Programs: Business Types. . . . .. 29 4.3.4. Demonstration Area Financial Assistance Programs: Environmental Objectives .......................................... 30 4.3.5. Demonstration Area Technology Training Incentives. . . . . . . . . . . . . . .. 31 4.4. Community Resource Linkages ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 31 4.4.1. California Environmental Technology Partnership (CaIETP) ........... 31 4.4.2. Southwestern College Small Business Developmentand International Trade Center (SBDITC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 32 4.4.3. UCSD-CONNECT..................................... 33 4.4.4. Environmental Technologies Institute. . . . . . . . . . . . . . . . . . . . . . . . .. 34 4.4.5. San Diego Economic Adjustment Program-Technology Council and State Regional Technology Alliance (RT A) ......................... 34 4.4.6. San Diego Regional Technology Alliance (RT A) - State of California Gold Strike Program ....................................... 35 4.4.7. Regional Technology Alliance - California Information Infrastructure Initiative element . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 36 4.4.8. Supercomputer Center . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 36 4.4.9. Environmental Health Coalition . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 36 4.4.10. Economic Conversion Council (ECC) ......................... 36 4.4.11. California Energy Commission (CEC) . . . . . . . . . . . . . . . . . . . . . . . .. 37 4.4.12. Other Linkages ....................................... 37 ~ /g-~30 BECA - Plan Overview July 8, 1994 1. INTRODUCTION 1.1. Purpose of this Plan Overview This Project Plan Overview is designed to assist in the development and communication of a Border EnvironmeDta! Commerce Alliance (BECA) initiative. It is a working paper, and as such, will be updated as Dew findings, agreements and funding necessitates. Since it is a work-in-progress. it is important that the reader have the most recent update in their possession for their timely consideration. This BECA Plan Overview states the mission, goals and objectives for this program. 10 addition, it provides a program overview that discusses the need for BECA, its essential program elements and important linkages with other local, state and federal programs. Note that background infonnation refers to a Border Environmental Commerce "Zone"; the program is now designed as a regional" Alliance", i.e. Border Environmental Commerce Alliance (BECA). 1.2. Background The economy of the United States has been hard hit by the effects of the recession, the end of the cold war and its downturn effects on the defense industry, and the collapse of the real estate markets. Southern California has been dramatically affected by all of these changes. As a result, the need for aggressive economic development and defense conversion strategies has never been stronger. At the same time, concern for the protection and improvement of the environment continues to be high on the state and federal agenda. California citizens, in general, and San Diego County residents, in particular, are coming to understand, along with the current White House and Federal and State administrations that Americans can have both a healthy, growing economy and a clean environment. Making a commitment to support businesses that contribute to a clean and sustaining economy, the City of Chula Vista formed a "blue ribbon" task force of local professionals to address these complex economic and environmental challenges and opportunities. THE CHULA VISTA TASK FORCE On January 12, 1993, the City Council of the City of Chula Vista, California created a 14-member Task Force to identify ways of attracting and supporting businesses in the high growth environmental product and service sector, and encouraging environmentally sound business development. On February 9, fourteen ß--B ....:> /~~3J Page 1 BECA - Plan Overview July 8, 1994 individuals were ratified as Task Force members. Members were selected to represent the business community, environment organizations, non~profit community groups, educational institutions, and governmental entities. Councilman Bob Fox was selected as Task Force chairman. The first meeting of the Task Force was held on February 26, 1993. The Task Force brought in additional regional resource people representing such groups as the San Diego Bankers' CDC, the Small Business Financial Corporation CDC, the City of San Diego Economic Development DepartmentlEnterprise Zone/Recycling Zone, and the California Trade & Commerce Agency. FIRST APPROVED CONCEPT PAPER AND INITIAL PROGRAM FUNDING On April 30, 1993, the Task Force adopted a concept paper outlining a proposal to create a re~ionallv· based "Border Environmental Commerce Zone" designed to encourage and support: 1) environmental business and job creation; 2) defense conversion efforts; 3) border-oriented environmental clean-up; 4) research, development and commercialization of innovative environmental technology; 5) start-up of environmentally sound businesses; 6) export of U.S. based environmental technologies, goods and services; 7) attraction and expansion of environmentally sound business having a positive economic impact. This "white paper", which provided the initial definition and scope of the program, was approved by the Chula Vista City Council on May 11, 1993. To show its commitment to this regional initiative, the Chula Vista City Council approved $100,000 of funding for the BECZ - now Border Environmental Commerce Alliance (BECA). Fifty thousand dollars ($50,000) is being used to hire consultants to coordinate the initial implementation of the BECA. The other $50,000 will be released upon the BECA attracting an additional $150,000 in outside funding. RETENTION OF AN INTERIM DIRECTOR/CONSULTANT TEAM On September 7, 1993, the City Council of Chula Vista approved the retention of an "Interim Director" to begin implementation of the program. The "Interim Director" is the firm Environmental Business Partners, Inc., the strategic and financial advisory affiliate of Environmental Business International, Inc. ~ / f--J ::z lIa1;< 2 BECA - Plan Overview July 8, 1994 (EBI). EBI provides research and consulting exclusively to the national and international environmental industry, and is publisher of the Environmental Business Journal, the leading national publication for environmental business owners and managers. Additionally, the City Council approved the retention of KSK & Associates to pursue state and federal government support for the BECA. 1.3. Endorsements Many business and civic organizations, environmental groups, and elected officials have endorsed the program in concept. These organizations include: 1.3.1. Participating Jurisdictions The County of San Diego City of Chula Vista City of Imperial Beach City of National City City of San Diego' State of California (CAL EPA, California Trade & Commerce Agency) 1.3.2. Economic Development Groups California Business Incubator Network California Environmental Business Council (CEBC) CalEP A/California Environmental Technology Partnership California Institute of Environmental Technology Center for Applied Competitive Technologies Chula Vista Economic Development Commission Chula Vista Chamber of Commerce Environmental Technology Export Council (ETEC) Greater San Diego Chamber of Commerce' City of San Diego Economic Development Services San Diego Economic Adjustment Group San Diego Economic Development Corporation South County Economic Development Commission 1.3.3. Community-Based Groups The Environmental Health Coalition San Diego/Imperial County Labor Council Sierra Club ß~J;5- ) '5/ j J Pâév 3 ~ BECA - Plan Overview July 8, 1994 1.3.4. Academic Institutions . Southwestern College Small Business Development and International Trade Ç,enter . UCSD Connect The City of San Diego and the Greater San Diego Chamber of Commerce have informally endorsed the BECA program and are moving forward to obtain Council and Board approval respectively. 2. MISSION, GOALS AND OBJECTIVES 2.1. Purpose The proposed Border Environmental Commerce Alliance is a regional coalition of United States/Mexico border oriented jurisdictions sharing the common goals of encouraging and assisting the growing eDvironmental industry and the development and commercialization of emerging environmental technologies and methodologies, therefore generating economic and environmental benefits for the area entire border area. 2.1.2. Mission Statement The mission of the Border Environmental Commerce Alliance (BECA) is to assist and promote environmental product and service businesses, to support the development and commercialization of environmentally sustainable technologies, and to attract and incentivize companies utilizing environmentally friendly processes (including pollution prevention technologies) through successful public/private regionally- based partnerships. The BECA will advance US/Mexico border area economic development and environmental protection through these cutting-edge business assistance initiatives. 2.1.3. Goals In order to fulfill the above mission statement the BECA will pursue the following goals: 1. 2. Support environmental business and job creation through targeted business assistance Encourage the attraction, retention, and expansion of environmentally friendly industry to the border area 3. Encourage cross-border environmental protection and cleanup / 'ð> 31 ~ - Pøge A BECA - Plan Overview July 8, 1994 4. Support the State, Federal, and San Diego region economic conversion efforts 5. Encourage the development, commercialization, and export of u.s. environmental technology/ products/services 6. Implement a successful Demonstration Program as a model for future regional/state/national environmental business partnerships 2.1.4. BECA Alliance The BECA will be the umbrella coalition which insures optimal coordination among participating jurisdictions, as well as other public, private and academic entities of numerous existing economic development programs which can contribute to the overall mission. Examples of such programs include the San Diego Technology Council and Regional Trade Alliance (RT A), the California Environmental Technology Partnership (CAL ETP), the Southwestern College Small Business Development/International Trade Center, the California Institute of Environmental Technologies (CIET), UCSD Connect, Scripps Institution of Oceanography, the Center for Applied Competitive Technologies (CACT), the Supercomputer Center, San Diego Recycling and Enterprize Zones, National Labs and federal initiatives such as NIST, ARPA, and TRP, and U.S. Environmental Protection Agency (EPA) programs. Additionally, BECA will create the framework for the creation of additional regionally-based, environmentally-related business development initiatives. Among these are a Border Environmental Technology Resource Center, a Border Environmental Business Cluster (Incubator) Program, and a BECA Demonstration Area. 2.1.5. Proposed New BECA Initiatives The City of Chula Vista has acted as a catalyst to bring the proposed regional alliance into being and is proposing three specific initiatives which will benefit all BECA partners as well as provide for specific business outreach in the South San Diego Bay area. The proposed initiatives compliment the San Diego region's Economic Adjustment program as well as the State's Regional Technology Alliance (RTA) and California Environmental Technology Partnership programs. The three initiatives are outlined below: 1. Border Environmental Technolo.v Resource Center IBETRC) The BETRC will be located at the Southwestern College Small Business Development/International Trade Center (SBD/IT). The BETRC will act as a "satellite" to the City of San Diego's High Tech Resource Center, providing technical assistance services from a location convenient to South San Diego Bay industry, and at the same time offering a specialized regional service in terms of environmental technology-related expertise. The BETRC will be the San Diego region technology ~ / <j{ <.73>-- Pag.:;. S BECA - Plan Overview July 8, 1994 center specializing in the environmental field. City of Chula Vista staff are working with City of San Diego staff to seek federal EDA funding to augment San Diego's existing EDA funded regional economic conversion program. The BETRC is described in detail in Section 4, on pages 18 through 24. 2. Border Environmental Business Cluster IBEBC) Incubator Program CalEPA has initiated the development of the California Environmental Business incubators Project (CEBIP) as an element of its Statewide California Environmental Technology Partnership (CaIETP) Strategic Plan and has recently announced that the three environmental incubator facilities will be located in the Silicon Valley, Los Angeles, and in the San Diego region in the City of Chula Vista. Chula Vista is currently working with the California Business Incubator Network and Business Cluster Development to implement the San Diego area program. BEBC will encourage environmental business start-ups by providing a common site where these small businesses can co-locate in order to benefit from the resulting synergies and tap into BECA related resources. The State-sponsored CEBIP incubator program will act as a catalyst to encourage environmental incubator programs which promote the environmental industry and technologies, support defense conversion and job creating efforts, and demonstrate how small and start-up businesses can operate in an environmentally responsible manner, utilizing sustainable technology practices within their companies. 3. BECA Demonstration Area in keeping with the border orientation, a BECA Demonstration Area is proposed for South San Diego County, to encompass portions of the County of San Diego, portions of the City of San Diego, and the Cities of Chula Vista, National City, and Imperial Beach. The Demonstration Area would be developed as a pilot program to develop and demonstrate targeted financial incentive programs to businesses achieving established objectives pertaining to the development and utilization of environmentally friendly technologies. Financial incentives would be designed to support business start-up and expansion, technology commercialization, and cost-effective integration of state-of-the-art pollution prevention, waste llÙnimization, and sustainable technologies. These three initiatives are discussed in detail in Section 4. ~ /ð'J? PAÕÒ 6 BECA - Plan Overview July 8, 1994 In addition to the above referenced three new initiatives, the BECA Alliance will provide a regionally-based vehicle to collaboratively pursue other public/private partnerships and related funding opportunities in such areas as international trade (technology export), border-related clean-up and infrastructure, defense conversion, and general economic development activities promoting the environmental industry. 2.1.6. BECA Funding The three proposed new initiatives presented in section 2.1.6 above, will require new commitments of resources. Because these initiatives are designed to further both economic development and environmental objectives, it is envisioned that federal agencies such as the Department of Commerce (DOC), Environmental Protection Agency (EP A) and Department of Energy (DOE) may be appropriate contributors. Currently the City of San Diego and the City of Chula Vista are working with the Economic Development Administration (EDA) to develop a co-application to DOC - for Economic Development Administration SSED funds to implement the proposed Border Environmental Technology Resource Center, and Border Environmental Business Cluster programs. Preliminary discussions are on-going with EP A and DOE regarding additional assistance. As previously noted, the City of Chula Vista has authorized $100,000 for development of the BECA Program. The City of Chula Vista is also providing additional seed money and administrative oversight to begin implementation of the Border Environmental Business Cluster program, using a non-profit sponsor and the services of Business Cluster Development- the developer of all three state- sponsored environmental incubators in California. 2.2. Goals BECA goals, as delineated in section 2.1.3 above, are briefly explained below: 2.2.1. Support Environmental Business and Job Creation The proposed BETRC and BEBC are designed to assist environmental technologies/products/services and thus to strengthen an emerging, high-growth-potential economic base. See Section 3.2 for an overview of the environmental industry's growth potential. ~/F'/3? Page 7 BECA - Plan Overview July 8, 1994 2.2.2. Encourage Cross-Border Environmental Commerce and Clean-up and the Attraction of "Clean" Industry to the Border Area The BECA will specifically address the need to attract 'clean-up' technologies to the U.S.lMexico border area to meet the growing demand for these technologies and services on both sides of the border where there are some of the most severe environmental problems in the world, including acute air, water quality and hazardous waste problems. The intent to address cross-border clean-up has been identified in several U.S./Mexico agreements; the recent signing of the North American Free Trade Agreement has focused the spotlight on this challenge in a way that has captured the attention of not only the United States constituency but that of the international community. The BECA will strengthen Southern California's hand in dealing with these issues and will support federally sponsored border-oriented facilities which are integral to the N AFT A agenda. By attracting pollution prevention and clean-up technologies to the U.S.lMexico Border, the BECA will be able to concurrently promote the export of these U.S.-based technologies, particularly to our Mexican neighbors. Export promotion efforts are discussed below. 2.2.3. Support Defense Conversion Efforts As discussed previously, the EDA-funded San Diego Regional Economic Adjustment Program has identified the environmental industry as one of the eight trbest bets" in terms of potential business growth and employment to facilitate defense/economic conversion in the San Diego area. Pollution Control Equipment, for example, led the industries surveyed in terms of projected growth at 20 % (1990-1993), and in U.S. exports to Mexico with NAFTA (at 17%), followed by Chemical Production, and Machinery/petroleum environmental control equipment, at 15% and 12% respectively. The BECA initiatives directly complement national, state and local efforts to mitigate the impacts of reduced defense spending upon the San Diego region and have been endorsed by the San Diego Economic Development Services, and the California Environmental Protection Agency and Trade and Commerce Agency. The proposed BETRC and BEBC will assist small and start-up businesses who are able to apply military based technology to commercial environmental applications, and will promote regional business diversification and job growth efforts through environmental business development services and export assistance. þ¥ ¡2r/3~ ..pags ~ July 8, 1994 BECA - Plan Overview 2.2.4. Encourage the Development, Commercialization, and Export of U.S. Environmental Technology/Products/Services The BECA will coordinate available resources to promote research, development, and commercialization of environmental technologies. BECA programs will encourage the transfer of information and technology among and between Alliance partners. For example, the Border Environmental Technology Resource Center (BETRC) intends to act as a business development arm of research and development efforts at regional academic institutions, including University of California at San Diego and the Scripps Institute, and those being proposed at local military bases. The BETRC will also provide a satellite arm of the San Diego Technology Council and the State's Regional Technology Alliance (RT A) to assist emerging and start-up environmental companies to seek federal funding for innovative environmental business consortiums and technology transfer. Additionally, the BETRC, which will be co-located with the existing Small Business Development/International Trade Center, will assist small environmental businesses to identify and access national and international marketing and distribution channels. particularly as relates to Mexico - only seven miles to the south. Finally, another example of how the BECA will achieve this goal is the creation of a State-sponsored Border Environmental Business Cluster, or incubator, program. This project will target start-up businesses which are in the prototype to commercialization phase as well as those involved in international trade, particularly the Mexico market. 2.2.6. Implement an Environmental Technology Demonstration Program The BECA is envisioned to provide the framework for a partnership of local, state and federal agencies in an Environmental Technology Demonstration Program offering new, unique financial assistance and pollution prevention training programs for targeted environmental businesses within a Demonstration Area. Based upon this Pilot Program's experience, the program can be modified and replicated throughout the country. The Demonstration Area would include the Cities of San Diego, Chula Vista, Imperial Beach, National City, portions of the County of San Diego, and would encompass Otay Mesa/San Ysidro Enterprise Zone and the San Diego Recycling Zone. The Demonstration Program would offer a bold and innovative local/state/federal partnership to encourage business to incorporate cutting edge sustainable technologies into their daily business practices. 3. NEED AND OPPORTUNITIES FOR BECA The Border Environmental Commerce Alliance (BECA) is a unique alliance designed to offer a variety of assistance programs to achieve its goals. By introducing three specific new initiatives - the Border ß~ /g, 3~ Page 9 - BECA - Plan Overview July 8, 1994 Environmental Technology Research Center, the Border Environmental Business Cluster and the Border Environmental Technology Demonstration Program ~ the BECA takes advantage of an emerging set of new business conditions, including: · economic challenlles. such as: recession, military base closures and defense conversion dislocations; · evolving environmental regulations which are creating new opportunities for the maturing environmental product and service industry; · industrial evolution from environmentally damaging technologies to sustainable technologies; and, · geographic proximity to the Mexican-American border and Maquiladora businesses, providing new opportunities for businesses and communities on both sides of the border that are environmentally related. The BECA offers a great opportunity for public and private agencies, businesses, community groups and citizens to support the development of a new economic base in this region; a foundation that will serve the San Diego region, the State of California, and the Country well into the 21st century. These unique and timely needs and opportunities are discussed in greater detail below. 3.1. Economic Challenges The u.s. economy and, more specifically, the California economy have suffered the impact ofrecession and the loss of substantial economic base due to defense related cutbacks. During the last two years, the largest San Diego region defense industry employers (General Dynamics and Rohr Industries) have reduced their combined local employment by 10,000 from 25,000 to less than 15,000. In San Diego South County, Chula Vista's Rohr Industries accounts for over 2,500 of these losses. Total San Diego area aerospace defense manufacturing employment dropped by 7,500 during 1993. Future anticipated job losses will exceed 15,000 for these major employers and will approximate an additional 10,000 for smaller aerospace defense businesses. This loss is anticipated to approach an overall 50 % reduction in the aerospace defense industry in the San Diego region. Innovative economic defense conversion efforts are needed to provide an expanded, more diverse and sustainable industrial base. The environmental industry, a major California industry already, is expected ß·e-!JJþ /? / if t) ..pag' 19 ~ BECA - Plan Overview July 8, 1994 to grow rapidly well into the 21st century, providing the base for new high quality jobs for displaced workers. 3.2. Environmental Industry Growth Potential According to the Environmental Business Journal, 1992 revenues generated by the environmental industry in the United States exceeded $134 billion and $300 billion worldwide. The environmental technology field is predicted to grow by as much as 25 to 50% over the next 10 years. According to the U.S. Environmental Protection Agency (EPA), roughly 2% of our Gross National Product (GNP) is currently being spent on protecting and restoring our nation's air, water and land. The EPA predicts that these environmental expenditures will increase to 3 % of GNP by the year 2000. Pollution control investment over the next decade will be driven by major land, air and water pollution regnlations passed by Congress in the mid 1970's and greatly expanding over the past 10 years. In addition, the non-EP A regulated share of annualized pollution control costs are projected to increase by 140% as a result of military and nuclear waste clean-up. The State of California has clearly recognized that California's high environmental standards present unparalleled opportunities for economic growth and job creation. As environmental awareness and standards are raised throughout the world, California has tremendous economic advantages to capture these lucrative markets. California's environmental industry currently generates approximately 17 % of total U.S. revenues, or some $22.8 billion, and approximately 10 % or $30 billion, of worldwide revenues. California currently boasts an environmental industry with over 180,000 jobs; it is estimated that over 50.000 new iobs will be created bv 1996 for Californians in the environmental technology arena. However, California and the U.S., are in danger of losing this significant competitive edge unless the govemmeDt and private sector together nurture this industry. Japan, for example, has targeted the environmental industry for the 1990's and has developed a l00-year plan to promote it. Other European countries are undertaking similar efforts. The California Environmental Technology Partnership (CAL ETP) was charged by Governor Wilson in 1992 to "recognize, assist and promote California-based companies that research, develop and export environmental technologies, goods and services." CAL ETP is a partnership of CAL EP A and the California Trade and Conunerce Agency as well as industry, academia, financial institutions, public interest groups, and federal and local governments. The BECA is one of the CAL ETP partners. The initiatives discussed in this paper link directly to the CAL ETP program, as well as the related California Trade and ~ ¡1ã J({-if/ BECA - Plan Overview July 8, 1994 Commerce Agency's Regional Technology Alliance, the State's program to encourage and support technology transfer and commercialization. The San Diego Regional Economic Adjustment Program, funded by the federal Economic Development Administration (EP A) and the Office of Economic Adjustment (OEA), undertook a comprehensive study in 1992 to develop strategies and programs to mitigate the impacts of the reduction in defense spending on San Diego's economy. (San Diego area workers displaced from 1991 through 1993 exceeded 28,000 with cuts continuing through 1995, with a yearly payroll reduction exceeding $300 million.) This study, which included a regional market assessment, concluded that the area's future relies on the "development of new markets, accelerated product development, and improved quality.· The results identified ei2ht industry clusters that should be tar2eted and nurtured; amon2 these is the environmental technolo2v industry. The San Diego/Chula Vista region is extremely well suited to benefit from aggressive international trade of such technologies, ie. cross-border with Mexico (seven miles to the south) and across the ocean to the Pacific Rim countries. The recent adoption of NAPT A adds to our locational advantage for environmental companies. The three proposed BECA initiatives will encourage and promote the environmental business cluster in the San DiegolTijuana region by providing targeted assistance to environmental companies via the Border Environmental Technology Research Center (BETRC); the Border Environmental Business Cluster (BEBC) incubator; and the BECA Demonstration Program. These are discussed in later sections. 3.3. Industry EvolutionlEnvironmental Management After almost twenty-five years of federal environmental legislation, and exacting environmental standards set to protect the California environment, industry is starting to answer the call to develop a sustainable economy worldwide. Spurred on by proactive pollution prevention and waste minimization programs, many companies, as well as entire industry groups, are incorporating strategic environmental management practices into their long term planning and ptactice. This evolution in thinking is spawning an emerging industry of environmentally sustainable technologies. These energy and resource efficient practices are not only cost effective for companies immediately, they save companies and consumers money in terms of lower environmental degradation, hence less environmental liability and a higher quality environment. But like any change, these new technologies and practices need to be supported and marketed in order to develop into a significant economic force. BECA is established to address this need, and capitalize on the opportunity of supporting industry to develop and export these new, sustainable technologies. ~ )g-/id-. Page 12 BECA - Plan Overview July 8, 1994 The concept of promoting environmentally favorable processes and products are receiving increasing attention from the business and manufacturing sector for two primary reasons: escalating costs, and environmental and health protection. Businesses nrovidimz new low cost aooroaches to standard industrial. manufacturin2 and a2ricultural methods which reduce impacts on the environment and thus related costs of doin2 business are ur2entlv needed to fill the needs of the 2eneral market. The BECA will promote technologies that will help business reduce costs in the following areas: · Disposal costs: Costs for disposal of hazardous wastes generated by the manufacturing process continue to rise. · Pollution control equipment: This equipment is generally a major capital investment, particularly for small companies. Maintenance and operation of the equipment requires trained personnel which represents ongoing costs, and the cost of treatment and disposal contribute to significant costs that can be significantly reduced through the utilization of environmentally friendly processes and products. · Regulatory compliance: Compliance efforts can demand significant dedication of resources, resulting in both personnel and capital costs. · Liahility costs: Liability costs associated with improper disposal of wastes, worker injury, accidental release of toxins, product liability and community exposure are escalating and in some cases, insurance coverage is not available. 3.4. U.S.lMexico Border Opportunities The growing trade development efforts between Mexico and the u.s., most notably seen through the recent passage of NAFTA, represent a potential wealth of new business opportunities for regional and national companies seeking to do business in and with Mexico. The San Diego and South Bay, due to their proximity to the U .S./MexÌco border have unique advantages in promoting regional trade efforts with Mexico. The environmental component of the economy of Mexico is expected to grow at a rapid rate. This is due both to the need to remediate contaminated sites from years of unhindered industrial growth, and also due to the expected "globalization" of Mexico's environmental regulations and enforcement policies which will require investment in modernization and environmental infrastructure development over the coming decades. The San Diego region, by promoting its environmental industry, has the unique ability to leverage this growth to the benefit of its local economy. ~~~ /?-IJ BECA - Plan Overview July 8, 1994 3.4.1. V.S./Mexico Border Environmental Background Rapid population and industrial growth along the U.S./Mexico border has crated what can only be called an environmental disaster area. According to the Southwest Center for Environmental Research and Policy (funded by Congress to initiate a comprehensive analysis of possible solutions to the acute air. water quality and hazardous waste problems that plague the U.S.lMexico border region), 'for many of the millions of Americans and Mexicans who live in the border region, environmental clean-up is a matter of life and death." The border area of the United States and Mexico stretches nearly 2,000 miles from the Pacific Ocean to the Gulf of Mexico. Most of the border countryside is arid desert land, with limited ground water and relatively few rivers. The band of border land extending 60 miles (100 kilometers) into each country (defined in jOiDt agreements as the area where efforts to clean up the environment will be concentrated) experienced rapid economic growth in the 1980's, with an increase in population of more than 50%. Population on the U.S. side rose from 3.094 million in 1980 to 5.723 million in 1990, and on the Mexican side from 2.842 million to 3.812 million. Three quarters of these 9.6 million people live in 14 sets of "twin cities" which adjoin each other at the border. The San Diego/Tijuana area includes approximately 4.5 million people, or 1/2 of the total U.S.lMexico border population. The border twin cities have attracted the maquiladora industry -- factories located on the Mexican side that are mainly American-owned. that obtain their raw materials or components from the U.S., process or assemble these items in Mexico, and then market the products in the U.S. Under special agreements, the two-way trade is largely exempt from customs duties. Of the total 2,000 maquiladoras, approximately 733 are located in San DiegolTijuana. The Maquiladora industry represents the second largest source of foreign exchange for Mexico, generating the U.S. $1.6 billion. It is also a valuable source of employment (a half-million jobs) and regional development. Development of the international maquiladora industry has been accompanied by concurrent development of Mexican national industry in the northern border region. According to the Southwest Center for Environmental Research and Policy, the surge of population and the sudden increase in industrialization along the border have been accompanied by some of the most severe environmental problems seen anywhere in the world. The Center reports that the border cities lack the infrastructure needed to keep communities in health condition. Approximately one-quarter of Mexican ~ /2f--1/f ,...-PRo... 14 BECA - Plan Overview July 8, 1994 homes have no running water. On the Mexico side, not one of the 14 twin cities has an adequate sewage treatment system. In many locations, sewage is not treated at all but merely dumped, raw, into tbe nearest waterway, creating immediate threats to public health. Billions of gallons of untreated sewage are dumped each year in the rivers and streams of the border region. At Tijuana, San Diego's "twin city", eight million gallons of raw sewage enter the Tijuana River every day. The New River carries sewage 80 miles into theImperial Valley of California. Health officials who studied the New River waters have found viruses and bacteria that cause typhoid, salmonella, polio and 25 other deadly bacterial and viral diseases. Fecal coliform levels in the river have been measured at 5,000 times the level considered safe. Cancer-inducing benzene and chloroform have also been found in the river. Many of the Volatile Organic Compounds (VOCs) found in the New River can be linked to assembly processes in the maquiladora industry; the City of Mexicali has almost 100 maquiladora plants, representing about 5 % of the total maquiladora industry in Mexico. Air pollution is common to all of the border cities. There are few paved roads or streets in the Mexican communities, creating particulate problems. Home-based kilns used for making bricks bum rubber tires as fuel, creating masses of thick, acrid smoke. Some maquiladoras bum high-sulfur fuel oil, producing emissions that would be illegal on the U.S. side. The severity of the air and water problems is matched by the threats of hazardous materials in the border regions. Regional EP A experts have attributed widespread environmental contamination along the U.S./Mexico border region to a large extent to the recent growth and diversification of the Maquiladora industry in Mexico. The Maquiladora industry has almost 2,000 plants and a half million workers; it utilizes hundreds of hazardous substances. How the majority of the hazardous wastes generated by the maquiladora industry in Mexico is disposed of is at present unknown. The Baja California maquiladora industry alone, primarily in Tijuana, Tecate and Mexicali, is estimated to generate 100,000 tons per year of hazardous wastes. However, only 15% of the maquiladoras legally recycle or send their residues back to the United States. The number of recycling plants with controlled confinements and an incinerator are very limited; SEDESOL (the Mexican agency for the protection of the environment) identified only three plants operating legally in Mexico. 3.4.2. U.S'/Mexico Cooperation Regarding Border Environmental Problems Mexico and the United States have been cooperating on joint environmental problems for over 100 years. The bilateral International Boundary and Water Commission has addressed boundary and water problems since 1889. However, the relatively recent population and industrial growth along the border have posed ~ '~ ! 15> Lj-':J tP::¡,gf\.!.' BECA - Plan Overview July 8, 1994 increased environmental, economic and infrastructure challenges to both countries. In response, the two countries signed the 1983 La paz Border Environment Agreement, which established a program for environmental coordination to address problems with air and water pollution, hazardous waste, and environmental enforcement. The North American Free Trade Agreement (NAFT A) provides further protection to the environment. It maintains U.s. environmental, safety and health standards, allows states and cities in NAFTA countries to enact even tougher standards, encourages all parties to strengthen their standards, and permits parties to restrict trade in endangered species and to take other steps pursuant to international environmental accords. NAFTA negotiations have resulted in increased cooperation between Mexico and the U.S. on common environmental problems, independent of the actual signing of the agreement. In February 1992, Presidents Bush and Salinas signed the "Integrated Environmental Plan for the Border." The goal of this plan, developed by the U.S. Environmental Protection Agency (EPA) and the Secretaria De Desarrollo Social (SEDESOL), is to provide for the long-term protection of human health and natural ecosystems along the border between Mexico and the United States. The major objectives of the Plan include: I. Strengthen Enforcement of Existing Laws. The plan calls for an increase in the number of Mexican border environmental inspectors; establishment of a new Cooperative Enforcement Strategy Workgroup; building enforcement capacity through cooperative training visits and bilateral workshops. seminars, field exercises and persOImel exchanges; exchanges of enforcement information; and cooperation on enforcement actions in agreed-upon priority areas. II. Reduce Pollution Through New Initiatives. Activities under this objective include: increasing wastewater treatment; strengthening the industrial wastewater pretreatment program; protecting drinking water supplies; initiating multi-media industrial source controls to reduce air, water, and land pollution; improving disposal of solid and hazardous wastes; setting aside land in Mexico for low-income housing; improving air quality; promoting pollution prevention borderwide; and providing technical assistance for pollution prevention to include training programs for the private sector, infonnation regarding clean production processes, university-based technical resource centers, and demonstration projects. III. Increase Cooperative Planning. Training and Education. Joint planning and training programs are to be developed for emergency prepatedness and response personnel for hazardous waste spills; for government officials who enforce environmental and hazardous material transportation ß-0r/g>Lj¿, PUo':" 16 BECA - Plan Overview July 8, 1994 regulations; for private sector organizations that handle and dispose of commercial and industrial sources of hazardous wastes; and for public information programs. IV. Improve Understandin~ of the Border Environment. Activities under this objective include development of an inventory of legal and illegal waste disposal sites, and projecting future capacity needs for legal disposal; determining the number, locations, and types of new solid waste disposal facilities needed in the border area; compiling an inventory of shared water resources, assessing demand on those resources, and establishing area-wide monitoring programs to define ground water and surface water quality; exchanging information on the analysis, proper use and control of pesticides in the border area; preparing a comparative risk assessment that guides future environmental protection efforts; and preparing periodic reports on environmental quality in the border area. The NAFT A has heightened national awareness of border environmental issues and has resulted in pledges from the U.S. and Mexican governments for increased funding in this area. Mexico has pledged $460 million over three years to address border environmental problems. President Bush included $241 million in the FY 1993 budget; Congress cut this request by almost $100 million. There is, therefore, a $600 million market for environmental clean-up and protection products and services in Mexico, as identified in the Integrated Environmental Plan for the Border's call for new initiatives to reduce pollution. This market presents significant opportunities for American environmental clean-up and management companies, to sell their products and services to Mexico. However, most U. S. companies will need technical assistance to overcome regulatory, social and cultural barriers to trade with Mexico. 3.5. Environmental Clean-Up/Public Health The existence of over 30,000 waste sites on the Federal Superfund list and 300,000 "Unofficial" waste sites (that have not yet been ranked as to their severity) attests to the pressing need for environmental technology solutions throughout the U.S. Clearly, this need will grow as clean up policies and regulations take hold around the globe. Clean up costs for these U.S. sites alone are estimated at $750 billion. In addition, it is becoming increasingly evident that alternative approaches and products are needed within the marketplace as more evidence mounts regarding the public health and environmental hazards associated with certain existing industrial practices. The BECA will be equipped to assist businesses to improve their approacbes within a product's life cycle, including material extraction, materials processing, manufacturing, þ31 /~/y? Pa,;s 17 ~ - - -- _._-_._~_._..._"._----~---- BECA - Plan Overview July 8, 1994 use and waste management. Reducing this impact is the central concept behind the BECA's encouragement of environmentally friendly processes. 4. BECA INITIATIVES As discussed, the Border Environmental Commerce Alliance (BECA) addresses the needs and opportunities outlined above through three key initiatives. Each of these programs are outlined below. 4.1. Border Environmental Technologies Resource Center (BETRC) A cornerstone of the BECA program is the proposed Border Environmental Technology Resource Center (BETRC). The BETRC will be located at the Southwestern College Small Business Development/International Trade Center (SBDlTC). The BETRC will be a satellite of the San Diego High Technology Resource Center serving the environmental industry cluster, as an integral part of the San Diego Technology Council and Regional Technology Alliance (RT A) within the statewide, California Trade and Commerce Agency-sponsored RT A network. As the resource center specializing in the environmental field, the BETRC will become the source for state-of-the-art environmental technology education, information, training, technical and financial assistance, environmental regulatory compliance assistance, and procurement assistance for the Southern California business community. In summary, the BETRC will provide a "one stop" access point for resources to enhance the development, commercialization, fmancing and marketing of environmental goods, services, and technologies. While the BETRC will serve all businesses within the San Diego region, it will also be closely linked with the Border Environmental Business Cluster (Incubator) Program (described in the Section 4.3). BEBC tenants will be connected with the BETRC via the BEBC Manager and will benefit directly from the Center's resources and services. 4.1.1. Environmental Technology Infonnation Clearinghouse The BETRC will serve as an environmental technology information clearinghouse. This specialized, "one- stop" facility is a critical element of the BECA business development effort, due to the tremendous volume, complexity and current decentralization of information related to entrepreneurial efforts to develop and ~~ /~/1/7 BECA - Plan Overview July 8, 1994 maintain an environmentally friendly business. (For example, just understanding the labyrinth of laws and regulations regarding environmental compliance can be a daunting task for the small businessperson). Helping entrepreneurs to understand what information is available and how to access it will be one of the more simple but critical services of the BETRC. The BETRC will provide easy access to information regarding such clearly specialized items as pollution prevention approaches, local, state and national environmental laws and regulations and waste management techniques. In addition, the BETRC will provide technical assistance in more general business development areas such as fmance and marketing, with the emphasis on the unique needs of the environmental business entrepreneur. Examples include: export opportunities, potential joint venture partnerships, government procurement policies and contacts, grant and contract opportunities, and defense related transfer technologies. A primary goal of the BETRC will be to centralize this enormous wealth of information while avoiding duplication of effort. As previously indicated, the BETRC will compliment the San Diego metropolitan area's Economic Adjustment Program (which is receiving funding from the U.S. Economic Development Administration), through direct linkages with the San Diego High Technology Resource Center and the San Diego Technology Incubator Program. As a South San Diego County satellite to these facilities, the BETRC will serve a targeted economic base and further specialize in border-oriented opportunities. The BETRC will offer centralized resources by utilizing other existing community-based, academic, governmental and industrial resources as the foundation of its "library." The BETRC "library" will consist of both on-site materials and a computerized inventory of off-site materials (and services) to which the BETRC client will be referred. Examples of off-site materials might include books, periodicals, audio and visual materials, and governmental documents. Examples of on-site materials include an on-line computerized data base linking the BETRC to the newly established California Institute for Environmental Technologies, UCSD, the Small Business Development/International Trade Center, federal laboratories and defense resources, federal grant arulOuncements, potential joint venture partners, ED> Net Internet Electronic bulletin boards, SBIR announcements, etc. Also available on-site will be a collection of materials that would be anticipated to be most frequently needed by BETRC clients and those which may be unavailable from any other source. A "no-paper" newsletter, accessible by computer, will be produced by BETRC staff to advise businesses regarding new developments in the industry and timely business opportunities. yf /~/'I/ Pege, 10 BECA - Plan Overview July 8, 1994 4.1.2. Technical Assistance The BETRC will provide technical assistance utilizing Center staff and crosslinking of for-profit and non- profit environmental entities. As in the case of the information clearinghouse, this network of services will include community-based groups such as environmental coalitions, educational institutions such as UCSD CONNECT, economic development agencies such as the Small Business Development/International Trade Center, and private business - potentially including recipients of direct BECA fmancial incentives. Technical assistance will be provided in the areas of: · Market research and analysis to help identify potential markets for current products and new environmental products and services the business may offer · Matching of environmental technology with manufacturing production capacity to produce new environmental products and services · Commercial business planning and management techniques to help transition to commercial markets · Analysis of current production activities/processes to determine commercial viability and how to apply emerging environmental technology · Analysis of existing manufacturing applications and assistance In applying upgraded applications · Research on specific source reduction, pollution prevention, waste management technologies needed by a BECA client · Environmental regulatory compliance assistance · State or federal contract/procurement opportunities, including assistance in seeking state matching funds for federal grants · "Matchmaker" services to identify potential joint venture or investment opportunities, including fostering of consortia-developed technologies ~ /<¡'/~(/ ~a~e ?O_ BECA - Plan Overview July 8, 1994 · Analysis of eligibility for specific BECA Demonstration Program fmancial incentives, and assistance in meeting the eligibility criteria (see Section 4.3.3. and 4.3.4.) 4.1.3. Export Assistance The BETRC will provide specialized service related to expanding markets for U.S. based environmental technologies/goods/services in foreign markets, with an emphasis on Mexico. The BETRC will build upon local state and federal export assistance programs already in existence, including the International Trade Center, with which the BETRC will be co-located. The BETRC will act as a 'matchmaker" in linking environmental companies in the BECA with both public and private consumers on both sides of the border. BECA will sponsor and cosponsor trade forums and trade missions with the San Diego World Trade Center, the International Trade Center, CALEPA, CalTrade and Commerce Agency and the California Energy Commission. 4.1.4. Training in Environmental Technologies/Products/Services Section 3.3, "Industry evolution" discusses the rising costs to business of compliance with environmental regulations and costs related to public health liabilities. These include: · Hazardous waste disposal · Pollution control equipment · Regulatory compliance administration · Liability related to improper disposal of wastes, worker injury, accidental release of toxins, product liability, and community exposure The BETRC will assist businesses to reduce their operational costs as well as pinpoint new opportunities in all of these areas via training and information related to: · low-cost pollution prevention methods to avoid the need to incur disposal costs · utilization of environmentally friendly processes and products to avoid the need to purchase and maintain costly pollution control equipment · regulatory compliance the identification of long term waste reduction strategies to reduce both operating costs and regulatory fees and fines · matching business with environmentally friendly processes/products for prudent avoidance of liability costs (in some cases insurance may not be available) II -- jf3- / '6 ~ 5'/ J>~¿~' BECA - Plan Overview July 8, 1994 4.1.5. Environmental Compliance Assistance The BETRC proposes to provide a border-oriented satellite center to the existing Business Environmental Assistance Center in Orange County at U.C. Fullerton. These one-stop services will be geographically convenient to all businesses located within border oriented San Diego County, as well as Mexico companies from across the border. The center will specialize in environmental regulation compliance, technical assistance related to both the U.S. (and San Diego County) and Mexico, and can act as a matchmaker for companies needing compliance consulting services or products and companies providing such services or products. 4.1.6. Recruitment of Environmental Industries Environmental industries are quickly emerging in the matketplace. Technologies are changing rapidly. Tracking these technological changes is a formidable task and one that will require an astute understanding of the production process and a strong connection to the academic and research and development centers throughout the country where these technologies are being spawned. Understanding these technologies will help the BETRC successfully develop and implement its financial and technical assistance program. Understanding the ever-changing regional, national and international market demand for environmental technologies and products will also enable the BECA to target likely recruitment prospects. Tracking emerging environmental companies will be central to the BETRC's goal of keeping abreast of industry trends and recruitment prospects. 4.1.7. Financial Assistance In addition to technical assistance programs, the BETRC will provide a vehicle for inventorying and providing access to all existing financial assistance programs appropriate for environmental companies. BETRC staff will link with all pertinent public and private entities to stay abreast of changing legislation, policies, grant and loan program guidelines and application procedures, and related contacts. This centralizing of available financial resources is key to the success of emerging companies for whom time _ and money - can be a matter of life or death for the venture. Examples of existing programs which would be accessible through the BETRC include: LOANS: BANKERS SMALL BUSINESS CERTIFIED DEVELOPMENT CORPORATION (CDC) Micro-Loan Program ~ /0'-,5';2- ~ BECA - Plan Overview July 8, 1994 CALIFORNIA SOUTHERN SMALL BUSINESS DEVELOPMENT CORPORATION Hazardous Waste Reduction Loan Program Innovative Development Loans Small Business Energy Conservation Loan Program Repair Underground Storage Tank (RUST) Loan Program CDC SMALL BUSINESS FINANCE CORPORATION 504 Debenture Loan Program Small Business Energy Loan for Technology Users/Demonstrators Energy Conservation Loan Tax-Exempt Waste Disposal/Resource Recovery Project California Loans for Environmental Assistance Now (CLEAN) STATE ASSISTANCE FUND FOR ENTERPRISE, BUSINESS AND INDUSTRIAL DEVELOPMENT CORPORATION (SAFE-BIDCO) Small Business Loans U.S. SMALL BUSINESS ADMINISTRATION (SBA) Handicapped Assistance Loans (HAL) Vietnam-Era and Disabled Veterans GUARANTEESILETTERS OF CREDIT: BANKERS SMALL BUSINESS COMMUNITY DEVELOPMENT CORPORATION Letter of Credit CALIFORNIA SOUTHERN SMALL BUSINESS DEVELOPMENT CORPORATION Loan Guarantee Program Tax-Exempt Waste Disposal/Resource Recovery Project CDC SMALL BUSINESS FINANCE CORPORATION 7(a) Loan Program U.S. SMALL BUSINESS ADMINISTRATION (SBA) Contract Financing Handicapped Assistance Loan Guarantees (HAL) Surety Bond Guarantee EXPORT ASSISTANCE: CDC SMALL BUSINESS FINANCE CORPORATION Export-Import Bank Loans CALIFORNIA EXPORT FINANCE OFFICE Combination Exporter Risks Guarantee Post-Shipment Exporter Risks Guarantee Loan Guarantees Pre-Shipment Exporter Risks Guarantee Cooperative Agreement Guarantee U.S. SMALL BUSINESS ADMINISTRATION (SBA) Export Financing 11--¥ J~/53 ~ BECA - Plan Overview July 8, 1994 BONDS: CDC SMALL BUSINESS FINANCE CORPORATION Taxable Bonds PARTICIPATING BECA CITIES & SAN DIEGO COUNTY Tax-exempt Industrial Development Bonds Taxable Industrial Development Bonds PARTICIPATING BECA REDEVELOPMENT AGENCIES Tax Increment Financing OTHER ASSISTANCE: CDC SMALL BUSINESS FINANCE CORPORATION Employee Stock Ownership Plan (ESOP) U.S. SMALL BUSINESS ADMINISTRATION (SBA) Small Business Innovation Research Program (SBIR) 4.2. Border Environmental Business Cluster (BEBC An Environmental Incubator Program 4.2.1. The Environmental Incubator Program - Need and Concept As discussed above, the environmental industry has great potential for new jobs. A large segment of the environmental industry's growth will come from the start-up of new ventures and the development of new technology. Assistance is needed to nurture small business development in this emerging field. The future BEBC in Chula Vista has been announced by the California EP A as one of 3 statewide environmental incubators in the three major metropolitan regions of California (Los Angeles, San Jose, and San Diego). The focus of the incubators will be on emerging environmental technology, sustainable development and environmental efficiency, in the areas of demonstration and commercialization. The BEBC will offer advantages for these small companies that are unavailable anywhere else, e.g. an affordable and practical environment, on and off-site business development services, and networks to facilitate synergistic exchange. The BEBC will provide tenants with substantial cost savings, will encourage partnerships between these emerging businesses and larger corporations (which for example, may want to buy a patent or form a joint venture), and will promote cooperation between users and producers of environmental teclmology - a goal high on the state and federal administrations' agendas. Environmental /L:*h / f5 ~Lj ~ BECA - Plan Overview July 8, 1994 industry experts feel that the need for this type of program is more pronounced than ever due to the drying up of traditional financial sources such as venture capital firms (which regard the environmental industry as risky ventures, despite the industry's global annual revenues of $200 to $300 billion). The three state endorsed incubators will be linked to each other in order to promote synergy between tenants in each of the incubators and to enhance collaboration with established corporations, universities, and government agencies including the BETRC, the San Diego High Technology Resource Center, the San Diego Regional Technology Alliance, the California Institute for Environmental Technologies at UCSD, and other alliance members. 4.2.2. Proposed Tenants: Demonstration and Commercialization It is anticipated that environmental research and development will primarily occur in facilities proximal to the University of California, San Diego and other research institutes. The BEBC will not attempt to duplicate the R&D infrastructure already available in these areas. Rather, the BEBC will be a unique demonstration and industrial process testing facility whose primary mission is to shepherd technologies from the laboratory into production and out into the national and global marketplace. In this capacity, the BEBC will function as an environmental technology transfer center. As previously indicated, the emphasis will be on tenants developing new environmental technologies, sustainable development and environmental efficiency. A BEBC Market Study is underway to develop program policies and specific tenant selection criteria. It is anticipated that an emphasis will be placed upon businesses which involve export potential. 4.2.3. Incubator Facility Characteristics The initial incubator facility will be located in the city of Chula Vista with easy access to the Environmental Technology Resource Center (BETRC) at the Southwestern College Small Business Development/International Trade Center. The facility will offer inexpensive and flexible office space for some 20-25 start-up businesses, shared equipment (such as PBX system, facsimile and copy machines), and a shared conference room and other space. The facility may also include limited shop space, as well as shipping and receiving capabilities. 4.2.4, Incubator Program Services Business development and marketing development services are an intrinsic component of the incubator program. These services will be made available on- and off-site. Examples of general technical assistance ß-47 /~~5 <Page IS BECA - Plan Overview July 8, 1994 which will be offered to incubator tenants are highlighted below in order of 'evolution of need' by individual companies: A. BASIC SERVICES SDace and Shared Services · inexpensive, flexible and convenient space · shared services, such as equipment and inventory control Business Develooment Services · planning · basic financial services · basic marketing · introduction and mentoring · regulatory approval fast track B. ADVANCED DEVELOPMENT SERVICES Marketiol! Develooment Services · market expansion · development of distribution channels · import/export assistance · sales support systems · technology application · funding/financing support systems Advanced Growth Services · reordering the company for growth · developing partnerships and joint ventures · creating new spinoffs and ownership · developing venture capital strategies · valuation of the company ~ ~ / 5/5Î/ \l/ BECA - Plan Overview July 8, 1994 4.2.5. Program Development/Management The incubator program is being developed by a Project Team including the City of Chula Vista, the California Business Incubator Network (CBIN) and Business Cluster Development, a private firm specializing in industry cluster incubator programs. The facility will be managed by the California Business Incubator Network, as Interim Non-profit Sponsor under contract to the City of Chula Vista. CBIN will be responsible for providing centralized management of the facility's operations including overhead and leasing as well as for coordinating all business development services - both on and off-site - and specifically encouraging linkages with the BETRC, and the EDA-funded San Diego region High Technology Resource Center, RTA and World Trade Center. Candidate tenants will be required to be screened by both a Technical Advisory Council and a Financial Advisory Council. Tenants will be required to meet certain criteria including preparation of an acceptable business plan, demonstration of need, business efficacy and product viability. Tenants will also be required to "contract" with the Incubator program to undergo a program of technical training or to link with a skilled team of advisors. An exit policy will be developed regarding turnover of Incubator tenants. 4.3. BECA Environmental Technology Demonstration Program 4.3.1. New Incentive Programs As previously discussed, the BETRC will emphasize the bundling of existing resources in order to provide centralized, one-stop assistance to the overall environmental industry cluster. In addition, the BECA intends to create new financial assistance ofoerams specificallv tailored to the environmental industry as a means of stimulatini! the 8i!i!re2"ation of environmentallv benevolent businesses within a Demonstration Area. The BECA proposes a Tiered Incentive Program which correlates business needs, risk levels, public economic benefits and environmental achievements with the type and level of assistance offered. The BECA in its capacity as a demonstration program, proposes to undertake a market study to determine specific environmental industry financial assistance needs and to design incentives accordingly, tiered to industry type and stage of development. The results will enable the BECA to offer market driven incentives within the proposed Demonstration Area which can serve as a model for state and national program development. Incentive programs will be designed to specifically encourage the utilization and demonstration of state-of-the-art environmentally friendly sustainable technologies by virtually any type of industry within the Demonstration Area. ~ ~re?7 - / 5<5'7 " i BECA - Plan Overview July 8, 1994 Two examples of proposed new BECA Demonstration Area incentive programs are designed to address the needs of start up and re-emerging environmental businesses needing access to capital. These include the formation of an Environmental Technologies Seed Capital Fund and an Environmental Technologies Venture Capital Pool and are discussed below. . Seed CaDi tal Fund (oan/~rant/~uarantees) for start-uDS and re-emer~in~ "sDin- affs" - Start-ups (companies with less than $1 million in revenues) require varying degrees of venture investment in order to take their product or service from research and development to manufacturing. This "early stage" investment is often from individual(s) who would like to participate in a young, promising concept or entrepreneurial team. One of the major problems for entrepreneurs in the environmental industry now is that there are few seed investors who understand this industry and therefore are willing to invest. The BECA, through its clustering of services, resources and expertise through the BETRC. Incubator, and related networks, will provide a much higher degree of understanding and will provide a forum for educating local and out of state investors on an ongoing basis. In addition, the BECA intends to fonn a public/private "seed capital fund." The creation of an environmental technology capital pool will minimize risk of any given investor as well as increase the investor's confidence that the entrepreneurs will have a higher degree of resources available to them than if they were on their own. . Venture caDital Dools (enuitv financin~) - Similar to the Seed Capital Fund, the BECA proposes to establish a Venture Capital Pool, for 2nd or 3rd tier financing (typically companies in the $1 million to $5 million revenue range). All of the benefits that apply to the seed stage financing apply at this level. However, additional assurance of marketing and productions expertise on the management team is required. 4.3.2" BECA Demonstration Area Boundaries The BECA Demonstration Area will include portions of the unincorporated County of San Diego, portions of the City of San Diego, and the Cities of Chula Vista, National City and Imperial Beach. Basically, the Demonstration Area is bordered by the United States-Mexico border to the south, the coastline to the west, 2 miles to the north of State Route 94 and 2 miles to the east of future State Route 125. The area includes A~ J({>5?' ~ ~ BECA - Plan Overview July 8, 1994 three major transit routes - 1-5, SR 94 and future SR 125 - to provide businesses with convenient access to the Southern California freeway system and the international border. 4.3.3. Demonstration Area Financial Assistance Programs: Business Types New BECA incentives will be unique to the Demonstration Area and will be linked to eligibility criteria designed to further the goals and objectives of the BECA program. An interested business (existing within the Demonstration Area or considering locating within the Demonstration Area) will apply for these types of assistance and be evaluated in terms of BECA Demonstration Area objectives. Eligibility criteria, in line with these objectives, will be designed to oromote the attraction. retention and develooment of environmentally benevolent businesses and business Dractices. The BECA is adopting the federal Department of Commerce (DOC) definition of the Environmental Industry. Further, eligible environmental industry applicants for Demonstration Area fmancial incentives will generally fall into one or more of the following three categories: 1) Producer - A business which innovates, develops or manufactures an environmentally-sound product. 2) User - A business which uses environmentally sound technology, defmed as technology that goes above and beyond the required control technologies. 3) Service Provider - A business which provides services which are intended to prevent, decrease, control, mitigate, detect or monitor pollution. Examples of business types expected to meet the Demonstration Area objectives include: 1. research, development and/or manufacturing of pollution control equipment 2. development or utilization of technologies or strategies that prevent pollution or decrease waste generation and emit only small amounts of pollutants in the production phase 3. product manufacturing and/or utilization of processes that promote the conservation of natural resources (such as water reclamation and sewage treatment technologies) 4. development of alternative energy/fuel sources 5. development or manufacturing of pesticide and herbicide alternatives ~ ~ I Y/5j BECA - Plan Overview July 8, 1994 6. development or manufacturing of non-point source treatment technologies 7. utilization of innovative low enússion technologies 8. exportation of products or services using environmentally-sound technology 9. environmental consultant services 4.3.4. Demonstration Area Financial Assistance Programs: Objectives Environmental The Demonstration Program will develop incentives that are designed to attract, promote, and develop environmental businesses which: 1) demonstrate that they utilize the highest level pollution prevention technology/processes (with a zero discharge goal) or 2) demonstrate that they strive for minimal depletion of the natural resources it uses, and 3) demonstrate achievement in meeting Demonstration Area objectives in the areas of: a) historical compliance b) discharge to air, land and water c) storage and utilization of chemicals d) environmental contribution of product e) production process f) air pollution emission g) health risk assessment, and 4) demonstrate potential positive economic impact to the community. Neither the BECA program nor the Demonstration Program are intended to encourage offsite treatment, storage, disposal or recycling (TSDR). 1i~5---r / ð'//;' tJ ~l )fr°___ BECA - Plan Overview July 8, 1994 4.3.5. Demonstration Area Technology Training Incentives The BECA will become a leader in environmental business education and awareness in Southern California and the country via the centralization of resources, including specialized training forums at the Environmental Technology Resource Center (BETRC). The BETRC will encourage the participation of businesses in educational seminars, workshops and networking opportunities related to state-of-the-art pollution prevention and control methods, leading-edge applications of new technologies and multi-national environmental management approaches. It is the intent of the BECA to maximize a sharing of the expertise and experiences of each business receiving direct Demonstration Area financial assistance through structured exchanges via the BETRC. The BETRC will encourage these exchanges among participating Demonstration Area companies. The BECA will also encourage Demonstration Area businesses to participate in workshops and seminars in a "student" capacity as relates to new environmental technologies which can enhance the company's capabilities, competitiveness and cost effectiveness. Ultimately, the goal of the Demonstration Area Program is to create a state.-of-the-art, interactive, training forum for the integration of innovative, environmentally sustainable technologies and procedures into the Southern California business community. 4.4. Community Resource Linkages As discussed, the BECA will take advantage of the vast economic development resources which already exist in the San Diego community. It will do so without overlapping or creating redundant administrative systems. To this end, the proposed BETRC and BEBC have established linkages with the following organizations: 4.4.1. California Environmental Technology Partnership (CaIETP) The CalETP is a marriage of the California Environmental Protection Agency (CalEPA) and the California Trade and Commerce Agency (CTCA). The purpose of CalETP is to pursue pollution preventioD, and to assist and promote California-based companies that research, develop, produce, market and export environmental technologies, goods and services. It is a public/private cooperative effort guided by the Environmental Technology Advisory Council (ET AC) that encourages strategic alliances. ETAC has developed a long-term Strategic Plan for California's environmental industry. The BECA (formerly 'BECZ ') is identified in the CalETP 1994 Statewide Strategic Plan as a 'Technology Development Association'. The BECA will be an integral element of the plan, as a grass root, regionally- ,-p~ /~/þ/ BECA - Plan Overview July 8, 1994 based implementation program to carry out CalETP objectives. As discussed previously, the Border Environmental Business Cluster has been identified by CalETP as one of 3 State-sponsored environmental incubators in California. As part of BECA's partnership with the state, CaIEPA's Department of Toxic Substances Control's Office of Pollution Prevention and Technology Development (OPPTD) will support the BETRC and BEBC by making available documents and electronic information regarding pollution prevention and waste minimization from the OPPTD Technology Clearinghouse. OPPTD staff will make themselves available to consult with BETRC and BEBC staff and individual companies regarding pollution prevention and waste minimization strategies and practices. The OPPTD will also conduct quarterly pollution prevention/waste minimization workshops for small businesses associated with the BETRC/BEBC, Mexican businesses and government representatives and U. S. businesses operating maquiladoras in the border region. The OPPTD will also help BETRC staff assess environmental technology needs and develop strategies to reduce pollution along the U.S./Mexican commercial corridor. The California Trade and Commerce Agency will also partner with BECA. For example, CTCA will provide specialized assistance in the area of international trade. CTCA staff will work with the BETRC to design and sponsor site visits/tours of California environmental companies and technology manufacturing facilities for representatives of Mexican companies and government agencies. They will also organize and conduct on behalf of the BETRC and associated companies trade and reverse trade missions to promote the utilization of California environmental technologies by the Mexican government and Mexican businesses. 4.4.2. Southwestern College Small Business Development and International Trade Center (SBDITC) The Southwestern College Small Business Development and International Trade Center (SBDITC) will be home to the Environmental Technology Resource Center (BETRC). Southwestern College works closely with the business community to carry out its economic development mission of education and training. The college has targeted programs in several areas: environmental technologv. small business. and international trade. The BETRC enhances SBDlTC targeted programs, and will be supported by the SBDCITC resources, as described below. The SBDlTC is one of 24 small business development centers certified and funded by the State of California, Trade and Commerce Agency and the U.S. Small Business Administration; and is one of nine Centers for International Trade Development funded by the Chancellor's Office, California Community ~ JY~¿'2 -=-lJft!O 3L.. BECA - Plan Overview July 8, 1994 Colleges. Areas of Center exoertise include technoloi!v transfer. procurement. and trade with Mexico and other Latin American countries. Under a soecial U.S. Deoartment of Education i1rant. the SBDITC has develooed a mecial focus on assistin1! U.S. Environmental Technoloi!v comoanies export their oroducts to Mexico. The SBDITC provides one-on-one business counseling and technical assistance to small business owners and start-ups in the areas of general management, marketing, finance, and international trade. The Center's Small Business Advisor, two International Trade Specialists and pool of 20+ consultants will provide support to the BETRC and BEBC clients/tenants. The SBDITC also provides a special entrepreneurial training program for laid off professionals who want to open their own business. This eight week training program, funded by the San Diego Consortium and Private Industry Council, will be an important resource to the BETRC to assist with the environmental incubator program. As the fiscal a~ent and partner with the San Die~o Re~ional Environmental Health and Safetv Trainin~ Consortium, the college can link the BETRC to consortium resources. This Consortium is composed of all colleges and universities providing training in environmental health and safety areas, public agencies providing first responder and/or regulatory services, and industry representatives who utilize the training services provided. It provides referral services and responds to training needs with program development assistance. Southwestern College also offers a two year Associate in Science degree in Hazardous Materials Technology as well as industry specific short-term training modules. The Center's advisory boatd will be a valuable resource to BECA; members include the World Trade Association, the Border Trade Alliance, District Export Council, Small Business Administration, U.S. Department of Commerce, South Bay Chamber of Commerce, County Department of Transborder Affairs, City of San Diego, and San Diego State University. The BETRC will be administered by Mary Wylie, Dean of the Economic Development and Customized Training Division and Director of the Small Business Development and International Trade Center under contract to the City of Chula Vista. 4.4.3. UCSD-CONNECT The CONNECT program is a comprehensive, self-funded UCSD extension program with outreach to most of San Diego's high tech and biotech companies, and direct ties to the UCSD research establishment. Its mission is to leverage the intellectual assets of UCSD and high tech companies for the economic benefit of the region. CONNECT will can be a powerful facilitating mechanism for providing directed services to BECA companies, especially in their early stages of R&D. CONNECT personnel are directly involved ~ lð--".] ~30- BECA - Plan Overview July 8, 1994 with industrial development issues in the County and are will 'link" their vast network of sponsors and University members with BETRC. 4,4,4, Environmental Technologies Institute In May 1994, California Governor Pete Wilson announced the formation of an Environmental Technologies Institute at the UCSD Scripps Institution of Oceanography. The Institute will develop environmental industry policy recommendations regarding such issues as state regulatory streamlining, environmental technology research funding, and environmental technology application, and will facilitate technology transfer. 11 will link with UCSD Connect's efforts including promotion of the environmental industry to the investmeDt community, and with the BETRC, which will provide the direct business development arm of the overall system, and the focus upon Mexico market opportunities. 4,4.5. San Diego Economic Adjustment Program-Technology Council and State Regional Technology Alliance (RTA) The San Diego Economic Adjustment Program (EAP) is a regional economic development program coordinated by the City of San Diego Economic Development Services. The program, developed by a network of public agencies, universities, community interest groups, local defense contractors, unions and service groups, is designed to mitigate the downturns in employment being experienced in the San Diego area and will be overseen by a regional Technology Council. The EAP reaches out to local defense businesses and encourages the development of emerging technologies and industry clusters. The EAP recently received USEDA funding of $5.8 million to develop: 1) a High Technology Resource Center (HTRC); 2) World Trade Center (WTC); 3) Technology Incubator; and 4) Technology Seed Capital Fund. The EAP also includes the San Diego Regional Technology Alliance (RT A), a State sponsored program. Each of these programs and their relationship to the BECA are discussed below. Hi2h Technol02v Resources Center ŒTRC\ The HTRC is designed to serve "high technology business development." 11 will perform outreach, including on-site assessment and direct operational assistance. 11 will support 'dual technologies' (military and civilian use) and manufacturing, with high priorities for defense conversion, and will serve as a liaison between the public sector and business. The Border Environmental Commerce Alliance BETRC will be ~ ~B~ J~/ b 2/ BECA - Plan Overview July 8, 1994 a 'satellite' of the HTRC, providing access for South San Diego County, border-oriented businesses and will offer specialized technical assistance for environmental business throughout the San Diego region. Technolo2v Business Incubator This facility will provide start-up support for high tech and other types of entrepreneurial ventures developed primarily by displaced defense workers. The emphasis of this program is to encourage conversion of defense technologies and development capabilities to commercially viable applications. It will be located at San Diego City College in conjunction with the Center for Applied Competitive Technologies (CACT). The Technology Incubator and the proposed BEBC will coordinate services and space available to potential tenants through cross-referrals. World Trade Center rwTC) The WTC will provide information and assistance to businesses engaged in or interested in international trade. WTC will closely link to the HTRC to assist local companies in developing export/import and other international opportunities. WTC will maintain independent, parallel relationships with many public and university resources, especially those providing international business services. The San Diego Port Commission, the World Trade Association and City of San Diego are key WTC partners. The BETRC will link with the WTC (as well as the Southwestern College International Trade Center) to offer qualified trade assistance specifically catered to benefit and promote the environmental business community. 4.4.6. San Diego Regional Technology Alliance (RTA) - State of California Gold Strike Program The EAP is an integral part of the California Trade & Commerce Agency's three industry-driven, regional technology alliances located in San Francisco, Los Angeles and San Diego. The San Diego RTA will reside within HTRC, adding financial and networking support to the center. Partners have strong private business, labor, local government and higher education representation. The RT A program will increase the likelihood of local business consortiums being funded under Federal and State programs. The BETRC will be an integral part of the RT A program, providing special environmental technology expertise to better assist these unique entrepreneurs to successfully apply for state and federal funding. p-7/'Y//,,Ç ~ BECA - Plan Overview July 8, 1994 4.4.7. Regional Technology Alliance - California Infonnation Infrastructure Initiative element This program will provide business data, information and support to small-to-medium, defense dependent companies and high technology start-ups. It comprises four proposals: (1) CALIFORNIA ACCESS, Governor Wilson, (2) the Information Highway component, Jet Power Laboratory (JPL)/Lawrence Livermore, (3) CommerceNet (demonstration electronic marketplace), Joint Venture Silicon Valley, and (4) the California Small Business Assistance Network, San Diego Economic Development Services/SAIC. The BETRC will be linked into these resources, as well as into the ClET's environmental database. 4.4.8. Supercomputer Center The world renowned Supercomputer Center in San Diego represents a valuable asset for high information intensive companies. Some environmental technology companies may need to avail themselves of this center and the BETRC will help to link qualified participants to its use. 4.4,9. Environmental Health Coalition The Environmental Health Coalition (EHC) is a leading regional environmental education and training organization. EHC provides information and education relating to pollution prevention and worker safety training to meet current environmental regulations. EHC provides valuable assistance to companies as they desire to make their products and processes more environmentally sustainable in order to better compete in the emerging sustainable global economy. The EHC and other community based environmental groups will play a role in developing programs designed to promote the use of sustainable technologies by Demonstration Area companies. 4.4.10. Economic Conversion Council (ECC) The ECC has a dual mission of enhancing public awareness regarding ongoing conversion activities and of promoting sustainable development. The ECC will provide public outreach services for the BECA and the BETRC. ~ J'{>"b ~'~~ BECA - Plan Overview 4.4.11. California Energy Commission (CEC) July 8, 1994 The California Energy Commission (CEC) has endorsed the proposed BCA initiatives and plans to provide support in a number of ways. Examples include the following: 1) Conducting a series of seminars/workshops for Mexican government representatives and California and Mexican private sector companies on topics related to energy efficiency and conservation and alternative technologies and fuels to meet commercial, agricultural and residential needs as well as to reduce pollution; 2) Organize and sponsor tours of California power plants and technology manufacturing facilities for Mexican utility representatives; 3) Organize and conduct on behalf of the BETRC and associated businesses trade missions to promote the utilization of California energy technologies in Mexico; and 4) Assess border-oriented energy DeedS and develop strategies to reduce transportation related pollution along the U.S./Mexican border. 4.4.12. Other Linkages Other important linkages for BECA programs will include: Center for Applied Competitive Technology (CACT) - City College Existing program at City College, sponsored by NIST Assist industries to modernize manufacturing, to develop quality management approaches (I'QM) California Manufacturing Technology Center (CMTC) - EI Camino College Existing program at EI Camino College ........................................................................................................................................................................................................................... Assist small aerospace businesses shift from defense to commercial manufacturing. Job Training. Alternate product markets. Small Business Innovation & Research (SBIR) Program Existing SBA program with expanded funding ........................................................................................................................................................................................................................... Source of research & development funds for small businesses. ........................................................................................................................................................................................................................... Small Business Technology Emerging SBA program Source of cooperative R&D funds ...!.~~.n.s.f~~..~~.~T9...~~~~:...I~....................... ................................ ................................. ...r.~~..s.~fi!l..h.~~i~...s.~.~.:............................... National Institute of Standards and Existing NIST program Funding source for R&D through Technology (NIST) Advanced government-business partnerships ...!.~:.h.~.o.l:'~>.:.~r.O'~.:".I11..(:.'.!p.!..........................................................................................~l'.p.I.Y.!.n.~..~~.~....~.::...I11...~.~.:......... DOT Federal Highway Existing FHW A program Infrastructure technology program Administration (FHW A) Inter conducing demonstration projects Surface Transportation Efficiency such as Intelligent Vehicle Act (ISTEA) Projects Highway System (IVHS). ........................................................................................................................................................................................................................... CALSTART public-private Existing California program Consortium for developing and partnership promoting state based transportation technologies. Western States Transportation R&D Centet Emerging California project ........................................................................................................................................................................................................................... (M:\HOME\COMMDEV\CD.NEW Future center to develop transportation related technologies. /~/~ 7 /g-68 BORDER ENVIRONMENTAL COMMERCE ALLIANCE (BECA) PURPOSE The Border Environmental Commerce Alliance is a regional coalition of United States/Mexico border oriented jurisdictions sharing the common goals of encouraging and assisting the growing environmental industry and the dèvelopínent and commercialization of emerging environmental technologies and methodologies, therefore generating economic and environmental benefits for the area entire border area. MISSION STATEMENT The mission of the Border Environmental Commerce Alliance (BECA) is to assist and promote environmental product and service businesses, to support the development and commercialization, of environmentally sustainable technologies, and to attract and incentivize companies utili7:ing environmentally friendly processes (InCluding pollution prevention technologies) through successful public/private regionally-based partnerships. The BECA will advance US /Mexico border'area economic development and environment3I protection through these cutting-edge business assistance initiatives. GOALS In order to fulfill the above mission statement the BECA will pursUe the following goals: I. Support environmental business and job creation through targeted business assistance 2. Encourage the attractiol!; ~etention, and expansion of environmentally friendly industry , to the border area . 3. Support the State, Federal, and San Diego region economic conversion efforts 4. Encourage cross-border environmental protection and cleanup . 5. Encourage the development, commercialization, and export of U.S. environmental technology/ products/services 6. Implement a successful Demonstration Program as a model for future regionaUstate/national environmental business partnerships PARTICIPATING JURISDICTIONS The BECA is to include the following governmental entities: " · County of San Diego · City of San Diego · City of Chula VISta · City of National City · City of Imperial Beach · State of California (Cal EPA, Cal Trade and Commerce) ~!~ -fl- ~-~ -- -~ ;J~ /?~? / CITY OF (HUlA VISTA --------,.-._~-----_._---- ... --- ."'.' r ....:~_....:..þ'.',...:.:"_;,',;:....,~. '';>'~'... :.."",..".,::.~~",,,:;.,,,;,.'.,;'~..if'o>,",:-,~[ ,.~." .I~.4'~-'r' . . . .-' ".' .' ·'·""",.>,r-"~~"'>~~'~?~;"!¡"f'~"""';"'''''' ,. .., ,,,,c"',",'f""-'¡"'_"'~~" ,., "':-'>" -''';'-~'':;':::::ï::' BECA ALLIANCE The BECA will be the umbrella coalition which insures optimal coordination of numerous existing economic development programs which can contribute to the overall mission. Examples of· such programs include the San Diego Regional Trade Alliance (RTA), the California Environmental Technology Partnership (CAL ETP), the San Diego Economic Adjustment Program, the Southwestern College Small Business DevelopmentlInternational Trade Center, UCSD Connect, Scripps Institution of Oceanography, the CACf, SupercOmputer Center, San Diego Recycling and Enterprize Zones, National Labs and federal initiatives such as NIST, ARPA, and TRP, and U.S. Environmental Protection Agency (EP A) programs. Additionally, BECA will create the framework for the creation of.additional regionally- based, environmentally-related business development initiatives. Among these are a BECA Environmental Technology Resource Center, a BECA Environmental Cluster Incubator Program, and a BECA Demonstration Area. PROPOSED NEW BECA INITIATIVES The City-of ChuIa Vista has acted as a catalyst to bring the proposed regional alliance into being and is proposing four specific initiatives which would benefit all BECA partners as well as provide for specific business outreach in the South Bay area. The proposed initiatives compliment the San Diego region's. Economic Adjustment program as well as the State's Regional Technology Alliance (RT A) and California Environmental Technology Partnership programs. The three initiatives which would be endorsed by the BECA Alliance are outlined below: 1. Environmental Technolo~ Resource Center ŒTRC) The ETRC will be located at the Southwestern College Small Business DevelopmentlInternational Trade Center (SBDIIT). The ETRC will act as a ·satellite· to the City of San Diego's High Tech Resource Center, providing regional services from a location convenient to South Bay industry, and at the same time offering a specialized service in teníIS öf environmental technology related expertise. The ETRC will be the San Diego region technology center speci~Ji"i"g in the eßviro)ment~1 field. City of Chula VISta staff and City of San Diego staff are working to prepare an application for EDA funding to augment San Diego's existing EDA funded regional economic conversion program. 2. Environmental Cluster Incubator Cal EP A has initiated the development of the California Environmental Business Incubators Project (CEBIP) as an element of its Statewide Environmental Technology Partnership Strategic Plan and has recently announced that the three environmental incubator facilities will be located in the Silicon Valley, Los Angeles, and the City of Chula Vista. ChuIa Vista is currently working with the California Business Incubator Network and Business Cluster Development to implement our local program. The BECA Environmental Cluster Incubator will encourage environmental business start-ups by providing a common site where these small businesses can eo<locate in order to benefit from the resulting synergies and tap into BECA related resources. The CEBIP incubator program intends to act as a catalyst to encourage environmental incubator programs which promote the environmental industry and technologies, support defense conversion and job creating efforts, and demonstrate how small and start-up businesses can operate in an environmenta1ly responsible manner, utilizing sustainable technology practices within their companies. 17~ /6//0 ~' ~ ".".".. /' - .4.#O.l. ,I/. A .' ~-<". ':.~' c..,aruc. '"""- c5j;iNê ' 3. BECA Demonstration Area In keeping with the border orientation, a BECA Demonstration Area would be created to encompass portions of the County of San Diego, portions of the City of San Diego, and the Cities of Chula Vista, National City, and Imperial 'Beach. The Demonstration Area would be developed as a pilot program to develop and demonstrate targeted incentive programs for the emerging environmental industry, Incentives would be designed to support business start-up and expansion, technology commercialization, and cost- effective integration of state-of-the-art pollution prevention, waste minimization, and sustainable technologies. Incentives could include direct financial assistance and cutting edge pollution prevention training. Training programs would assist businesses to reduce their operational costs as well·as to pinpoint new OppòrtUlÙties in such areas as hazardous waste disposal, pollution control equipment, and regulatory compliance. 4. BECA Rel!ional Prol!l'am Develooment , The BECA Alliance will provide a regionally-based vehicle to collaboratively pursue public/private partnerships and related funding opportunities in such areas as international trade (technology export), border-related clean-up and infrastructure, defense conversion, and general economic development activities promoting the environmental industry. 4/t9/94 ~!f? -,1- ~~ -- --- ~ /<6-"? / Cln' Of CHUlA VISTA CUn1l11uni¡\ Development Department. City of Chula Vista. 276 Fourth Ave.. (hula ViSI,), CA 91910. (619) 691-5047 F,lX (619) 476-5.110 '-:,.- CáldJlh..ðP~ . BORDER ENVIRONMENTAL TECHNOLOGY RESOURCE CENTER · A Border Environmental Commerce Alliance (BECA) Initiative The Border Environmental Technology Resource Center (BETRC) will become the cross-border, one-stop source for state of the art environmental technology, information, and training. The Center will also offer environmental industry business development assistance and regulatory compliance services. The BETRC will link directly to the San Diego High Technology Resource Center and its public/private partners such as the Center for Applied Competitive Technologies (CACT), UCSD Connect, the Federal Lab Consortium and the Supercomputer Center. The Center will also be an integral part of the State-designated San Diego Regional Technology Alliance, providing specialized expertise to businesses seeking state and federal funding for environmental technology commercialization. The BETRC is to be located in the City of ChuIa Vista at the Southwestern College Small Business Development and International Trade Center, approximately 7 miles north of the U. S.-Mexican border. ENVffiONMENTAL TECHNOLOGY CLEARINGHOUSE The BETRC will serve as a cross-border environmental technology and regulatory clearinghouse. This is a response to the tremendous volume, complexity, and current decentralization of information related to the environmental industry, emerging pollution prevention technologies, and compliance issues. The BETRC will assist businesses on both sides of the border in understanding what information and aSsistance is available and how to access it including environmental database access, professional research services, and personal counseling. TECHNICAL ASSISTANCE The BETRC's staff will provide technical assistance in the following areas: . Environmental Technology Transfer/Commercialization · Analysis of Existing Manufacturing Applications and Assistance in Applying Sustainable TechnologiesÆnvironmental Management Techniques · Matching of Environmental Technology with Manufacturing Production Capacity . Accessing International Procur~ment/Contract Opportunities EXPORT ASSISTANCE The BETRC will provide specialized service related to expanding markets for U.S. based environmental technologies/goods/services in foreign countries, with an emphasis on Mexico. Center staff will assist in identifying and accessing US and International markets and distribution channels. Staff will identify and match U. S. product/service providers with Mexican companies needing to meet environmental standards and to improve operations/productivity through front- end pollution prevention techniques. ~!I~ f ~~ ß~~(;;5 JY/7J /8'~7// CHULA VISTA T COll1munity {)cw'opnWI1I DCP,Hllllt'lll' Citv OtChul.1 Vi<..t,l. 276 Fourth Avc.· Chub ViS1,l, CA Y1910. (61Y) 6Y1-5047 Fax (6191 ...76-5310 o --_:.~~: Cald JIh.. ð)iIØC . . BORDER ENVIRONMENTAL BUSINESS CLUSTER (BEBC) · A Border Environmental Commerce Alliance Initiative PURPOSE Many of the new jobs created in the rapidly expanding environmental industry will be from start up firms. The Border Environmental Business Cluster (BEBe) is being designed to serve start up businesses focusing on environmental technologies, approaches to sustainable developments, and environmental efficiency. The Cluster will serve as a launching pad for new businesses by providing inexpensive office space and access to a variety of business development services. SPONSORS The California Environmental Technology Partnership has designated the BEBC as one of three statewide environmental business clusters it is supporting as part of its statewide strategic plan for the environmental technology industry. The City of Chula Vista is currently working with the California Business Incubation Network and Business Cluster Development Company to plan and establish the BEBC as a non-profit business development operation. THE FACILITY/LINKAGES The BEBC facility will be located in Chula Vista, California and will offer inexpensive and flexible spaces for 20 to 25 start-up businesses: Businesses will be able to use shared office equipment and space. Business development services and counseling in areas such as technology transfer, marketing, and export assistance will be available on site from a broad range of partners including academic, public, and private resources. Tenants will also have easy access to the planned Border Environmental Technology Resource Center (also in Chula Vista) and the other two regional clusters in Thousand Oaks and San Jose. TENANTS Tenants mnst fall within a broad definition of environmental firms and be in the first or second year of operation. The BEBC will offer these firms a unique demonstration and industrial process testing facility whose primary mission will be to shepherd technologies from the laboratory into production and out into the national and international markets. The facility will serve more mature businesses by offering room to expand and specialized services such as venture capital strategies. WANT TO LEARN MORE? If you are interested in becoming a tenant or if your would like information on assisting in development of the Border Environmental Business Cluster please contact Cheryl Dye, City of Chula Vista Economic Development Manager at 691-5047. A:\incubate ~!f? 0 ~~ ~ Jg~75Í/g~~d CHULA VISTA Communitv Dl'velopnrent Oep,lrlmenl . City of Chul,] Visl,) 0 27() fourth Ave.' Chul,l Vi~ta. CA 91910. (619) ()l1-5047 Fax (& 19) 476-5310 .n~· .__....._m.m.··..' _....,.._~_ "_"____,~__,_.___ EXHIBIT "C" DRAFT EXCERPT FROM THE MINUTES OF THE JULY 6, 1994 ECONOMIC DEVELOPMENT COMMISSION MEETING 2a. Border Environmental Commerce Alliance Update Cheryl Dye described the efforts currently underway to develop an Economic Development Administration (EDA) grant application. She further explained that staff will present the draft preproposal to the City Council on July 19 for their approval. The application has two major components: the BETRC (Border Environmental Technology Resource Center) and the BEBC (Border Environmental Business Cluster). The Chula Vista EDA application is being developed so as to build on efforts in the City of San Diego. The City of San Diego has received approximately $6,000,000 in EDA support for a regional economic development program. The major areas that the City of San Diego is pursuing include the following: a high-tech council, a high-tech resource center, a world trade center, a high tech incubator and a seed capital. The two major components of Chula Vista's program are: the BETRC is going to expand San Diego's efforts geographically by creating a satellite technology resource center to serve the South Bay and specifically the environmental industry. A unique feature of this technology resource center would be its ability to further cross-border relations and the potential for exports. The second component of our application also closely aligned with San Diego's regional effort is the BEBC. It will be an incubator facility that will house 20 - 25 businesses that have been in business for less than two years and that qualify as an environmental business. Generally, qualification means that business would 1) create products which help the environment, 2) provide services to business which help the environment or 3) utilize environmentally sound processes in manufacturing. Ms. Dye further went on to explain some of the details contained within the EDA application. She stated that the application will be for roughly $2.6 million in funding. This would support two to three years of the program. The application is not only a local effort but brings together various other entities state, regional and local to make this effort possible. The $2.6 million request requires that the City match this request with a certain amount of funding. That funding can be cash or in-kind services. The City has obtained commitments to in-kind matches. The state has agreed to allow our program to access the environmental technology clearinghouse as well as to provide training to the program's businesses in the areas of pollution prevention. The City of San Diego's high tech incubator will be cross referring interested parties to our incubator and vice versa to service the high tech industry as well as the environmental industry. Southwestern College has also agreed to provide business development assistance through their Small Business Development and International Trade Center. UCSD Connect will provide access to various venture capital sources. ~ /~/77 The City is also pursuing a state defense adjustment matching of $100,000. The probability of our receiving this funding is very high because of how well our program matches the objectives of their program. The program is designed to match Federal monies coming into the area to help defense industries convert to other commercially viable businesses. Finally, a critical component of this application is the donation of a vacant Rohr facility for the 8!:TRC & 8!:8C. Ms. Dye further explained that staff will be seeking conceptual support from the San Diego High-Tech Council on July 14. We need to obtain their approval of this program before submitting a final application to the Economic Development Agency. Discussion between various members of the Commission ensued regarding the types of cash funds that are available. Ms. Dye explained that two sources of potential cash match include Community Development Block Grant funding and rental revenue from the incubator facility which will be set at a lower than market rate. Staff will evaluate options for recommendation to Council. Commissioner Reed requested that staff explain how the $100,000 CDBG allocation, from Fiscal Year 1993/94, was being used. Ms. Dye explained that Council authorized $100,000 allocation to develop the Border Environmental Commerce Alliance by retaining the services of a director. Council subsequently authorized using $20,000 of the funds to retain two consultants who serve as the interim director for the program currently and the City Manager authorized $4,800 for assistance in preparing the EDA application. Fifty thousand dollars was made available to fund these activities immediately and another $50,000 was to be made available when matching funds were obtained from outside sources. Currently approximately $55,000 remain unencumbered in this fund. 1 Chairman Tuchscher clarified that the support being sought by staff is conceptual approval for the program and the application that is being developed. A motion and second (Peter/Compton) was made to recommend that Council direct staff to move forward with the development of an application to pursue EDA funding as well as related endorsements and contributions. The motion was carried by a vote of 5-2-2 (Patrick & Lebron absent; 2 vacancies). I c:1 w p win Icurti sId oeumentled em i n] 'Note: Correction: an additional $10,000 was approved by Council to provide seed money for the BEBC $65,000 is currently unencumbered. ~ /~-7t/ ~ ~ ~ . ~ ~ . ~ ~ i! " i! i! 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J::r;l::S 5 i ~.5..c I: 1 f S J ~ ~ ~ .8'1·1 :t~:::5~..r~ ;¡~2:::S '.=:;¡ ~ 'Sip... tltõ !a:tGl !:ij i !J:i GI CIo..·3 CI :g,,'¡;;,:f.~ CIo<= ;!ij~g¡::~CIog.i;-iš ::gZOU~~E--o~U~~E--o:;J ~ ~ . ~ H /o~7C¡ Hi!~ g f-'" r- ........;:¡ uu ~. ~ 3 æ ~ ~ !! ~' .' g&;~s:;~~ ~~oq,'i.r-;.!;! ~:r1~~~ .,,0010,..,0'\ riri": EXHIBIT "D" w. ..,. ~ ""'''''i' iiiIi ·w ...., Ilil! -. w.·.··· , ~-:-:-::-:-:-:.:.: 3:,.:..::,.~,',.,· ". I:~e,'::,1.¡;,:¡, '" ~ :-:.'::-:::;:::: "'~:n: .c: --- u:¡¡j]'---""¿~ HH~IUœ ..r:: 'g -g þ;:~:;:g':::I ¡::Z:¡}5; r.I ~ ._ . :!:;Jr~i 0"'<:::'0':' H ~ ~Ii~[i ~¡I .... n"'~,::S .ã,~ ~ !ill~ ~.I ~Im'~ ~.!~ fll~l!l ~~ ~i!il¡I'~ ~i ..'J,' '.¡;¡ " ..,. , ..,. , ...,. '-' 'w" ,-. ',_..'.'... EXHIBIT "E" BETRC & BEBC FACILITY RELATED BUDGET Not included in EDA application: YEAR 1 YEAR 2 YEAR 3 3 YEAR TOTAL Building 24,000 sq. ft. Donated Donated Donated 0 Land 40,000 sq. ft. Range: $0 - $34,560 Range: $0 - $34,560 Range: $0 - $34,560 Range: $0 - $100,000 (48,000 s.f. @ $8 s.q. @ 9%) Capital Improvements To be determined. To be determined. To be determined. To be determined. Estimated Range: (Tenant Improvements) (Tenant Improvements) Estimated Range: $80,000 - $115,000 $80,000 - $115,000 TOTAL $80,000 - $215,000 [MARYMISC\TABLE.EDA] !tð ) 'ð ~? ) eCONOMIC DEVELOPMENT D ID:236-6512 JUN 17'94 San Diego Technology Council and Regional Technology Alliance June, 1994 Mr, John Berden City CEO Octus 9940 Barnes Canyon Road San Diego, CA 92121 (6191462-9400 I"AX(619)457-7163 Jylr. Tom Behr County McDonald, Hecht & Solberg 600 West Broadway, Suite 800 ,San Diego, CA 92101 239-3444 ~t( 8:07 No.007 P.02 EXHIBIT "A" Dr. Allen Brooks Community College District Vice Chåncellor San Diego Community College District 3375 Camino del Rio South San Diego, CA 92108-3883 (619)684-6939 FAX(6191584-6541 Dr,Ernesto Corte City Gamma Metrics 5188 Pacific Center Blvd. San Diego, CA 92121 (619146()..9811 FAX(619)452-2487 Dr. Ed Fertek UCSD UCSD 9500 Gilman Dr. La Jolla, 'CA 92093-0007 (619)534-3135 FAX(619)534-6523 1 p /5-' o;? ECONOMIC DEVELOPMENT D ID:236-6512 JUN 17'94 8:08 No.OO? P.03 Mr. Joe Francis Executive Secretary of Treasury AFL-C/O Central Labor Council 4265 Falrmount Ave. San Diego, CA 92105 (619)283-5411 FAX(f.319283-2782 Labor , Mr. Art Goodman President CDC Small Business Finance CorporatIon 6353 Mission Center Rd_ Suite 218 San Diego, CA 92108 (619)291-3594 FAX(619)291-6954 CDC, Small Business Mr. Dan pegg President San Diego Economic Development Corporation San Diego, CA 92101 ~619)234-8484 FAX(619)234-1935 S.D. Economic Development Corporation Ms. Sheron Hudnall Director Federal Laboratory Consortium 6373 Lurnbda Drive San Diego, CA 92120 287-9041 272-9452 Federal Laboratory Consortium Mr, Mel Katz Manpower . 101 West Broadway Suite 1400 San Diego. CA 92101 (619)237-9900 FAX/619)237-9981 Private Industry Council ~ þb )3'---5;/ /' ECONOMIC DEVELOPMENT D ID:236-6512 JUN 17'94 8:08 No.007 P.04 Dr. Donald Kerr Corporate Executive Vice President SAIC 1241 Cave Street La Jolla, CA 92037 (619)546-6656 FAX (6191546-6165 City' Dr_ Gloria Ma Chief Technical Officer XXSYS Technology Inc. 46.19 Viewridge Ave. San Diego, CA.92123 (619) 974-8200 FAX(619)974-8208 City ,. Dr_ Frank Mederios SDSU Associate Vice President for Academic Affairs ..5300 Campanille Dr. 58n Diego. CA 92182-0711 (619)594-6883 FAX(619}594-474 5DSU Mr. Tom Morgan Principal The Ayres Group 750 B Street, Suita 1 1'42 San Diego. CA 92101 (619)696-6896 FAX(619)696-6868 Greater 5.1?, Chamber Commerce Mr. Mark Nelson Governmental Affairs San Diego Gas & Electric P.O. Box 1831 San Diego. CA 92112 (6191696-2000 FAX(619)696-1814 SDG&E x ~ /O~~ç ECONOMIC DEVELOPMENT D ID:236-6512 JUN 17'94 8:09 No.007 P.05 Mr.. Bob Plotkin World Trade Center PresIdent World Trede Center 6363 Greenwich San Diego, California 92122 (619)453-4605 FAX(619)453-1907 Dr. Gene W. Ray City CEO Titan Corporation 3033 Science Park Road San Diego. CA 92121 (619)552-9500 FAX(619)662-9645 Mr. Richard Shearer Navy Labs Executive Director Naval Command, Control & Ocean Surveillance Center, Research, Development, Test & Eveluation Division 63560 Hull Street San Diego. California 92162.6001 653-3010 ¡ Mr. Rohit Shukla Ex-officio Loa Angeles Regional Technology Alliance 6922 Hollywood Boulevard #416 Los Angeles, CA 92108 (2131462-5111 FAX(213)462-2228 Dr. Harvey White City OUALCOMM 10666 Sorrento Valley Road San Diego, CA 92121 (619)587-1121 I=AX(6191452-9096 þ( ß-f /~---YP ( 'E~ONOMIC DEVELOPMENT D ID:236-6512 Dr. Ken Widder Chairman and CEO Molecular Biosystems 1 0030 Bernes Canyon Road San Diego, CA 92121 (619)452-0681 FAX (619)452-6187 Mr. Richard Vortmann CEO National Steel & Ship Building Company 2798 Harbor Drive 'San Diego, CA 92113 (619)544-3400 FAX(619)544-354 JUN 17'94 City City 'X ~ /~/ý/ 8:09 No.007 P.06 _.SD CNTY BRD OF SUPRVRS TEL No. 619-557-4025 Jul 7.94 14:58 No.008 P.02 COMMITTEE: sAN DIEGO TECHNOLOGY COUNCIL CON~ACT PERSON: GONZALO LOPEZ WORK PHONE: 236-6551 COUNTY DEPARTKENT: CITY OF SAN DIEGO MS: M51E I' , NAME: 5EHR, THOMAS L. '1115 ADDRESS: 600 WEST BRO~Y., .8THFLOOR,SAN DIEGO 92101 HOME PHONE: WORK PHONE' 239-3444 APpOIN'rMBNT DATE: 5/17/94 (43) TERM EXPIRATION: 5/17/97 NOMINATED BY: DISTRICT 3 APPOnrI'ED BY: BOARD OF SUPERVISORS REQUIREMENT; STATIS'l'XCS: / HI OATH CARD: RQ FORM 730: CIA: FORK 519: COMMEN'l'S: . N~: VA'=»tr.l¥ ~ f· ~. ADDRESS: , HOME PHONE: WO~~: ' ApPOIHTMEN't DATE: '!.~ ~XPDA'l'ION: NOMINATED BY I DIS cor 1 APpOINTED BY I BOARD OF SUPERvISORS REQUIREMENT: STATISTXCS : . / I OATil CARD: RQ FORM 730: CIA: FORK 519: COMMENTS: NEW 4/19/94 (39) - pOSTED VACANCIES NAME: vACANCY '1117 ADDRESS: , HOME PROm;:: WOIUC PROm;:: APPOINTMENT DATE: TERM EXPIRA'l'IOK: NOKIKAT¡¡:D BY: DISTRICT 2 AppOINTED BY: 50ARD OF SUPERVISORS REQUIREMENT: STATISTICS: / / OATH CARD: RQ FORM 730: CIA: FORM 519: COMMENTS: NEW 4/19/94(39) - POSTED VACANCIES NAME: VACANCY ADDRESS: , HOME PHOIŒ: WORK PØONE: APPOIN'l'MBN'l' DATE: TERM EXPIRATION: NOMINATED BY: DISTRrCT 4 APPOINTED BY: BOARD OF SUPERVISORS REQUIREMENT: STATISTICS: / / OATH CARD: RQ FORM 730: CIA: FORM 519: COMMENTS: NEW 4/19/94 (39) - POSTED VACANCIES NAME: VACANCY[uM ~~t. '1119. ADDRESS: , ~SU s.-....... --n.:A.-vo~-, $.,""".. )1J,..."..........'" (1....0 HOME PHONE; WORK I'JION81 ?~Øl- </D',/C AÞPOIII'1'MEN'J.' DATE: 'I-tl-'''rERM EXPIRATION: NOMINATED'Bl(t DISTRICT 5 APpOINTED BY; BOARD OF SUPERVISORS REQUIREMENT: STATISTICS : OATH CARD: RQ COMMENTS: NEW flUS Ç:lcLiG- -. ~.'OO I I I FORM 730: CIA: FORM 519; 4/19/94 (39) - POSTED VACANCIES < \ 5/24/94 - 1'''''-''' fz'~~) 9: 09 am \../ --fi-~ / 3' ~ g ¿¡-- I HIGH TECH RESOURCE CENTER San Diego Community College CACT* Economic Development Corporation San Diego Supercomputer Center UCSD CONNEcr San Diego Consortium & Private Industry Council Federal Lab Commission SAB DIEGO TECHHOLOGY COUBCIL PROGRAMS , '.~:;;;:.$i..<:ø.::::::$:~~:*~}): .'>, :~ ,; TECHNOLOGY .~ INCUBATOR ::;.~ San Diego Community College CAcr* SAJ.'1 DIEGO TECHNOLOGY COUNCIL World Trade Association SDSU -- College of Extended Studies San Diego U nilled Pan District ,-~ /~/ry REGIONAL TECHNOLOGY ALLIANCE CORPORATION UCSD -- College of Extended Studies and Public Service I .:.~.:' SEED CAPITAL FUND COC Small Business Finance Corporation * Center for Applied Competitive Technologies TWs ,age íntenüonaIIy left blank. /}~¿J;o ~ I 0 EXHffiIT "B" "Draft Pre-Proposal as submitted to Mr. Charles Oaks, Economic Development Administrator, June 28, 1994" ;¡Y1'- / g>1/ TItís yage íntenüonaIly lift blank. ~/g-/7d- ITEM TITLE: SUBMITTED BY: REVIEWED BY: CITY COUNCIL AGENDA STATEMENT Item 19 175"7..5' Meeting Date 7-19-94 RESOLUTION APPROVING THE OPENING OF ESCROW FOR THE PURCHASE OF REAL PROPERTY LOCATED AT 746 AND 750 ADA STREET FOR DEVELOPMENT OF AFFORDABLE HOUSING AND DAY CARE FACILITY, WITH CLOSING OF ESCROW SUBJECT TO FINAL CEQA AND NEPA REVIEW, AUTHORIZING CITY MANAGER TO EXECUTE PURCHASE AND SALE DOCUMENTS IN A FORM APPROVED BY THE CITY ATTORNEY AND TO CONDUCT ALL NECESSARY PROPERTY ACQUISITION ACTIVITIES, AND APPROPRIATING HOME PROGRAM FUNDS THEREFOR Community Developmept Director (.. ). City Manageck;i bJ.\~) U (4/5ths Vote: Yes L No_) BACKGROUND: At the City Council meeting of May 17, 1994, in executive session, the Council authorized staff to finalize negotiations to acquire two parcels at the northwest corner of Industrial Boulevard and Ada Street for the purpose of developing the child care facility associated with the development of the Palomar Trolley Center shopping center, as well as an affordable housing development. Staff was authorized to offer the property owner $635,000.00, which is the appraised value, plus not-to-exceed $8,000.00 for the actual costs incurred by the owner for site clearance and the relocation of tenants. Negotiations have been concluded, and escrow documents have been prepared at a purchase price of $635,000.00 plus a maximum allowance of $8,000.00 for site clearance and relocation. RECOMMENDATION: That the Council adopt the resolution approving the opening of escrow for the property acquisition with close of escrow subject to final CEQA and NEP A review, authorizing the City Manager to take necessary actions to complete the acquisition, and appropriating $643,000.00 in HOME Program funds therefor. BOARDS/COMMISSIONS RECOMMENDATION: The Housing Advisory Committee has discussed the proposed project at several meetings and has expressed strong support without taking any formal action. DISCUSSION: The following discussion addresses the specifics of the properties, the negotiated purchase, and the status of the intended development of a child care facility and an affordable housing project. The Properties: The two adjacent parcels (746 Ada Street/APN 622-020-20 and 750 Ada Street/ APN 622-020-30) are located at the northwest corner of the intersection of Industrial Boulevard and Ada Street (see map, Attachment 1). They are bounded on the east by the MTDB Palomar Trolley Station (across Industrial Boulevard) and on the other three sides by /9 -/ Page 2, Item Meeting Date 07/19/94 19 residential uses. Total acreage is 2.01 acres. Each parcel is improved with an aging single- family residence, and each residence is occupied by tenants. The parcels are relatively flat and present no significant impediments to development. Zoning is R2-P, which allows one dwelling unit per 3500 square feet. The properties were appraised for the City on December 28, 1993, at a market value of $635,000.00, or $7.25 per square foot. This value is based on a highest and best use as vacant land held for redevelopment. The appraiser found that the existing improvements contribute no value to the properties. A Phase I Environmental Site Assessment was prepared for the City which found no apparent hazardous waste on the property and no historical land uses that would make contamination likely. The purchase contract stipulates that the seller represents to its best knowledge that the site is free of contamination and that the seller is responsible for any contamination of which it was aware subsequently discovered on the site. The Negotiated Purchase: At the May 17, 1994 Council meeting, the Council approved offering the appraised value of $635,000.00 plus an allowance of not-to-exceed $8,000.00 for the owner's actual cost of site clearance and relocation. The owner of the properties has agreed to the purchase price of $635,000.00, plus the not-to-exceed $8,000.00 allowance for the owner's costs of clearing the site and relocating existing tenants. Site clearance will entail removing the two existing single-family dwellings. It will be made a condition of escrow that any clearance contract subject to the allowance will require the prior approval of City staff. Status of Intended Development: The proposed site development is a day care and Head Start facility for a maximum of 150 children and eleven to twelve low-income first-time homebuyer townhomes. Staff has made much progress in predeveloment meetings with Habitat for Humanity and Episcopal Community Services. Recently, South Bay Community Services (SBCS) has joined the discussions to explore the benefits of a joint-venture effort that could bring some of SBCS's strengths and funding sources to the project. Staff will return to the Council in the near future with a full analysis of the development and funding options. The Palomar Trolley Center developer has agreed to have the general contractor for the center, Collins Construction, build the day care facility at no profit, to assist in arranging for member- contractors of the Building Industry Association to provide free or discounted services, and to guarantee a $50,000.00 scholarship fund for low-income children to attend the facility. It has been determined that the acquisition of the subject parcels for the development of the affordable housing and the day care center constitutes a project under CEQA. Therefore, an Initial Study process is underway, and it is expected that a negative declaration will be the result. Additionally, in order to use the federal HOME Program funds, a parallel environmental review process under NEPA (National Environmental Policy Act) is required. Due to the time sensitivity of the transaction, it is recommended that the acquisition and the appropriation of funds be approved at this time, but with close of escrow expressly conditioned upon satisfactory completion of the CEQA- and NEP A-required environmental processes. This approach has been analyzed and approved by the City Attorney. /9"'2 Page 3, Item /'1 Meeting Date 07/19/94 FISCAL IMPACT: The maximum acquisition cost would be $643,000.00, if the entire allowance for site clearance and relocation were used. Therefore, an appropriation of $643,000.00 is required from HOME Program funds: TOTAL $322,000.00 $321,000.00 $643,000.00 FY 1993-94 HOME Funds FY 1994-95 HOME Funds The expenditure of those HOME funds will leave an available balance in the HOME Program of approximately $500,000.00. Other uses of the HOME funds being contemplated include possible subsidies to the relocation mobilehome park effort, a limited equity cooperative housing project proposal from South Bay Community Services, and various gap financing efforts for affordable apartments. All of these projects may not be accomplishable from the remaining balance of the HOME Program funds. However, HUD indicates that the City will be in a good position to receive additional HOME funds in the near future from funds de-obligated from other cities that have not been able to utilize those funds as successfully as Chula Vista. Because the HOME Program is specifically an affordable housing program, it would be necessary to reimburse the HOME funds for the portion of the property used for the day care facility at the point at which the day care facility was developed. That value is estimated at $212,000.00. The most likely source ofreimbursement funds is future Community Development Block Funds (CDBG). In the meantime, the properties represent a legitimate site to land bank for an affordable housing project. IC :\WP5t \COUNCIL\113S\ lRL 'fERAC.113) /9 ;:] i- ',: 'j Commercial Property NORTH PALOMAR STREET :c (1) CtI is: (1) ::I .... C'ï Residential ~ ~ ~ ~ Vacant '?- 1:13 o Co ~ ...........................................................\ ~ ~ ö 750 746 t......................................................................~ ADA STREET Residential ~EnecoTech - ENVIRONMENTAL CONSULTANTS Tille: Project Addrus: 746 & 750 ADA STREET CHULA VISTA, CALIFORNIA 91911 ú> ~ Ö ..... ('i) t't, ..A .... ~ .'1: ú> ~ ~ ..... (') ('i) not to scale SITE AND ADJACENT PROPERTY MAP file No. 02-00515-025 DOI·'03_15_94 Acod Owg.H: /1-'1 I riqurc No. RESOLUTION 1 75?5 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE OPENING OF ESCROW FOR THE PURCHASE OF REAL PROPERTY LOCATED AT 746 AND 750 ADA STREET FOR DEVELOPMENT OF AFFORDABLE HOUSING AND DAY CARE FACILITY. WITH CLOSING OF ESCROW SUBJECT TO FINAL CEQA AND NEPA REVIEW. AUTHORIZING CITY MANAGER TO EXECUTE PURCHASE AND SALE DOCUMENTS IN A FORM APPROVED BY THE CITY ATTORNEY AND TO CONDUCT ALL NECESSARY PROPERTY ACQUISITION ACTIVITIES. AND APPROPRIATING HOME PROGRAM FUNDS THEREFOR WHEREAS. Council authorized staff to finalize negotiations to acquire two adjacent parcels (746 Ada Street/APN 622-020-20 and 750 Ada Street/APN 622-020-30) at the northwest corner of the intersection of Industrial Boulevard and Ada Street for the purpose of developing affordable housing and a child care facility associated with the development of the Palomar Trolley Center shopping center; and WHEREAS. negotiations have been successfully concluded with the property owners of the subject properties that have resulted in a purchase contract for the properties at the fair market value of the properties as established by an appraisal commissioned by the City; and, WHEREAS. it is appropriate for the City to conclude the purchase of the subject properties at the agreed-upon price in order to effectuate the development of affordable housing and associated day care; and, WHEREAS. sufficient funds to acquire the properties exist in the City's entitlement to the federal HOME Program which can be appropriately used for the acquisition of property for the development of affordable housing and which can be partially reimbursed to the HOME Program to the degree that some portion of the subject properties are developed as day care facilities; and. WHEREAS. environmental review under CEOA and NEPA of the intended property acquisition is currently being undertaken; the acquisition of the property is expressly conditioned upon the completion of this process and the City approval. in its sole discretion. of a Negative Declaration for the project, and no City funds are at risk pending completion of such environmental review process. NOW THEREFORE. THE CITY COUNCIL OF THE CITY OF CHULA VISTA does hereby find. order. determine and resolve as follows: 1. The opening of escrow for the purchase of parcels APN 622-020-20 and APN 622-020-30 is authorized in accordance with the terms of a Purchase Agreement in a final form approved by the City Attorney, copy of which is on file with the City Clerk as Document No. . with close of escrow subject to, among other things set forth in the Purchase Agreement. final CEOA and NEPA review. at a purchase price of $635,000.00. plus the actual cost of site clearance and tenant relocation not to exceed $8,000.00. to be approved in advance by the City Manager or his designee, for a total cost of $643.000.00. J9,-,f' RESOLUTION xxxxx 2. The City Manager is authorized to conduct all property acquisition activities and execute all relevant documents to purchase the subject properties at the price authorized above. 3. Three hundred twenty-two thousand dollars ($322,000.00) is hereby appropriated therefor from the FY 1993-94 HOME Funds account. 4. Three hundred twenty-one thousand dollars ($321,000.00) is hereby appropriated therefor from the FY 1994-95 HOME Funds account. Chris Salomone Community Development D' APPROVED AS TO FORM BY: IC :\WP5 t \COUNCIL\RESOS\ TROL TERR.RES] /9~¡' DI8"rNBIJl'S)"'~~C#'AEAIJORIIOo rvnm 1.1....-1.. 1l1li L' LOTS AND LAND PURCHASE CONTRACT AND RECEIPT FOR DEPOSIT THIS IS MORE THAN A RECEPT FOR MONEY. IT IS INTENDED 10 BE A LEGALLY BINDING CONTRACt READ IT CAREFUUY. CALFORHIA AS8OCWJON Of AEAIJOA8' (CAR) SINCWU) FOIW '~~ 1 -'j -,;.4;,,~c..j 0,.-- -_.__,_h _ _d _.,---,."...~......,<--~......;......-,~.., ~. Ja ~ (.........1 DoIIars,IO.OOO 00 ï /1 ...-e, 1ECEIVED FROM 'HE SUM OF TEN THOUSAND AND 00/100 f1f OCUh I!I~._ 0__ 0.0 PAYABLE 10 South CoasLTitle Company 10 BE HELD UNCA$HED UN1lL ACCEP1'NCE aI .. on. . . ÖIpOIft 10 be ~ DIM:' 1M PURCHASE PRICE OF SIX HUNDRED FORTY THREE THOUSAND AND 00/100 FOR PURCHASE OF PROPERTY SITUATED IN Chula Vista COUNTY OF San Die20 DESCRIBED AS Approximately 80,212 Sq. Ft. located at 746-750 Ada Street shown on 12231 filed June 16, 1989 ....._.. _. 622-020-20 1. FINANCING: The ~ng of Buyw's fInMctng ... -~...'ICY of thIa agrwmeM. A. !:'EPOSIT upon _ ~h...._ 10 be dIpOIIICI "*' Escrow a INCREASED DEPOSIT within _...... 110m .1 tOt 10 be ~ InIo C. BALANCE OF DOlIN MYMENT 10 be depoIitIId InIo on or .... D. IMLANCE OF PURCHASE PRICE AS RJLLOWS· Payable all cash throuRh Escrow prior to close of escrow DoIM" 643.000.00 CaIItomIo. survey & 30 , · 10.000.00 · · 633,000.00 E. row. PURCHASE PRICE: ....................................................................................................................................................... af!43 ,000. 00 F. &uy..,.-Io IICI dMIgenIty Md In good .....10 CIbIWI ... ~ ftMndng. G. AOOITIONAL FINANCING TE.....' Purchase price is subject to ad ustment identified in Exhibit A with a corres ondin a justment to the balance a able at the close of escrow. The de osit shall not chan e. itiona terms set forth at Exhi it A attached hereto and incorporated herein bv reference. 2. BONDI AND ASSESSMENTS: IF ASSUMED BY BUYER~ 0 OF RECORD 0 Nor YET A UEN . 3. ASSUMPTION OR "SUBJECT TO": In"_ ......_.._...._,,_ _'). _.).._.), ...,......_ Buyer with cop¡. of appIicIiIM nee.. o.dI al1tuII1I'Id boncIlCMduIeL A lOIn rMy conIaIn . numbaf of fMturø which afr.ct tha loan. such .. i,... ---.........---.)................,....---....-........"""'-..- SaI6er in writing of dINppnwaI. &uy.r" appnMI .... noI be Wauof.-Þty wIthtIetd. DIftInra In .-ung 10M ~ 8haII be IdII.IIied In 0 Cuh, 01' 0 . ......... ,. .. L__~ ......... of. ~~~,.,. ATTACHED....· ._Ã "ÒoCl),þCM'" harain: 0 000 "ESCROW: Buyer and SaUer Ihd deher aignIId inIIructians 1ft South Coast Title Co. tha eecrcw hoIdar, wIthIn~~SIay. _from ~ which IIIaII provide IDf cIoaIng .........12-caAendar dIyI from,8CCIpIanCe. Eacrow....1o be paid... foMows: 50% by Seller, 50% by Buyer. Buyer and Seller shall Dav those closin2 costs as is customary of Buyer and Sell~r in ,San Diego County. euy.r and SeHer ~_ Ildg. receipt øI copy øI thll page, which c:onItItut.. p. 1 of _ Pagel. Buyer'llnItIaIa I ~ I ~ Se!Ier'llnIUaIl ( , f , 11tI8STOO-fDZB)DOCUMEN'TFDRUIE..SIMPI,.ItRAN&' .:. ..0.4HASIEENAPPfOIEDIYTHiECALFORNIAAS8CJÇIA11ON0FfEALTCRP INfOAMOfrLY.NOAEPAESENTA~,' .. MADE AS TO THE AJI1'flOrIIIL OF THE FORM OR MY 8UPPLÐIEHTS NOT CUARENT1. Y PUBUSHED BY THE CAUI"OANIA AS8OCIAT1ON OF REALTORS- OR THE LEGAL VAI.IJITY ~ IitJEQ(JACIf OF NlV PACM8ION IN ANY SPECIFIC TW~'" C'TION. rr -.ou.o NOT lIE USED IN COMf'lÐ( TRANMC11ON8 OR 'MTH EXTEN8IYE RIDERS OR ADDmON8. ' AIEALESTATliMCIICEA·.'ne:PlAlSCNQI..IAI.RØ)TOAOIMEON......u:rATETRV.. CTlQHLIFYOUDEllAEl,IGALORTAXADYIŒ.CONBULT ANAI'f"AOPIIM,!'E~ ".~ ....of.. ~ ......(17U.S, coo.¡lDtbId..-...onacI ..........of...tDnnbW.,,_~.......CIf~__ ~e tile, CAU<OAfrM ASSOClA11OH OF ÆAl.1"ORP ~~"-,LoI'-"--',CaIiIcIrnIf¡IOD2O J9-? "roo,...,..,..,.,.... .............~I OFAœUSEONLV 3 ' ¡.::::,,-«-- tit - o Subjeel Property Address: 746-750 Ada Street .19_ e. TITLE: Title is to be free of liens, tnCwnbr'anceI, ....,.,..,. ,..riCtiont, rights and conditions of I'KOfd Of known to Seller, othtf than the foUowIng: (a}Current propertytaJCes. (b)COoWI&I'II:a,conditioM, ~and puÞlic utilityeuemenlsdrec:otd,lfany, pnMdedthesamedonotadYefMlyaflecttheCOl'1llnu.:l u. of the prnperty for the purpoMIlor which II II pr.."uy ~ng used, unleAl'HIOIIabIy diaapproyed by Buyer In writing within ~ calendar dayI, from NCeipt of. cooent prMIminary ~ fumIIhed II Seller t s .xpenae. and (c) SeI....1haI1 fumiltl Buyer" Seller's ...... CLTA Policy tiöe policy iuued by Fidelity Title Company, showing title Y88ted In Buyer aubtect only 10'" ~ If Seller II unwilling or unIIbIe 10 elimina any title ~ diupprowed by &uy.r.. abcJIM, Buyer may termil\lle th6IlIfiI'M"*t. " Seliei' faüt to ÔII\W" .1ÞcNe, Buyer may tenNnIII thAI .........; In ~ cue, .... depoIit ahIII be ,..... to Buyer. ,....... 1. .. InoorpcMÑd .... 1.VESTING:U!I....otMrwiMdeelgnltedln..-=n:M'lnItructionIofElu)w.titlelMll¥llll.1ÞIIowI.: City of Chula Vista " ::' ('The ......... of....ng tIttIt ....,.... eIgnIIIcent..... 8ncI ... COItUqUIf-. 1'heNIoN. ................... _ IJ rMkm.) I. PRORATIONS:___on_... ,__.,.s_._,___..........on........._ to Buyer and IhaII be pM! CIJfNfII and pror-.d .. d :[] 1M day of NCOrdation 01 the dMd; or 0 .Bandlor ._.oI~ahallbe 0 _CU'Nlll:Þr....~noIy.ccsu.tobe-.nedby &yor,... [;9....,.....,.___..........;... 0 N/A . CcunIy_.......... paid by Seller . -n. ""* lax or ban*'........ be pMI by . PfIIOPEAT1' WILL IE ..þ....~...- UPON CHANGE OF OWNERSHIP. THIS WILL AFfECI' THE TAXES 10 BE PAID. A ~Tr'T-.... tax biI will be iIIued. which IhIII be.1I ~ (~tar per\odI.... cIoIe 01 -=row, Þy Buyer (or by Iin.I acquiring party if part 01 an 1IICChenge), Md (II) tar periodI prior 10 cIoN 01 -=row. by SIller. TAX BaU..S ISSUED AFTER CLOSE 0# ESCRON SHALL BE HANDLED DIRECTLY BETWEEN BUYER N#D SEl.1.aR. .. POSSESSION: ~ ..... be deININd III auw-. 0 on dole d eecrow. or 0 not .... than _...., ~ after dole of eectOW, ...0 - 10. SECURITY DEPOSITS: Security dIpoIb...", III the...... they... not been applied Þf.....1n ~ wIIt1 the...... ....... and CWNnI law, IhaII be ~ III Bur- on doN of eecnM. n. TAX WITHHOLDING: (0) U_..._ _.. _ _....... (FIAPI>.IAC "_ ..._'" WI.......- __..-.. -.nption appIIM, deduct and wttht1øId from....... pnøedl10IMI d the CJIOIa.... price. The prirMry FlAP1A exMIptioI. b' noIIl nT''iI~'' pIQperty are: No withholding II '*IUi1'ld If (I) SeIer pnMdeI ~ wIIII...mcs.vit, IRSer penalty 01 perjury, Ö* StIer iI not a''IoNign penon;' 01' (II) Seller ~ Buyer wtth a .'quaIifytng....."..,........ Þf the....... ~ ServIce. (b) In.ødlüon. undet c.øtomia,...,~ and 1UatIon Code 1118805 and 2813t. iIV'ItY B4Iyer mutt. unlea .. -.nption app¡., deduct and wIItIhoId from the SeI&w'. procMCk 3ValMl 01 the ero- .... price if the SeI.. hu a ... kncMn ..... add... 0&Ø6de d California. or If the SeIer'I proceedI wiI be _III allnanciallnlennedlary d the s.IIet. TM primary -.nptioM lor noli.... . ~ .... propNty aN: No withholding III'I1QUNed II (I) the property Ia MMlng lor 1100.000 01'''',01' (0) the FranchI8t Tax Board.... a certificIIIe authortzing a__ amounI 01' no withhoking. ,01' (W) the SeIIIr IigM MIIfIkINII&Iting IhII the Seller iI . CIIIIomIa ,...,.. 01' . corporIÖCIn quaI/IIecI to do ~ In c.IiIomIL (c) SeIIiIr and Buyer... to --=-......... cIrIdIId any inItrumenI:. etftdavtI. 01' ....... rMMIMbIy ~ III carTy out thoM...... and ~ promu!gMed ......... 12. MUL11PLE LISTING SERVICE: " Brok8r .. . PwtIciput 01 .. ~ multiple MMing IIiI'VØ ("MLS·'). the BroMr II Whorized III NPOrt the....pric:1t,liInM,encIftnencingtarthepubllclllon.~.kIIormIIkIn.ancla.-dtheUhorlmd~rnemberw. MLS~' " .. end~' ....,." AgItnt:f (FEMA)''FIood InuMce RåIt Map'" (fIRM) cw "Aaod HeZIIrd IIoundery M.p" (FHBM) tMn SeIIt..... within hm , a. diIdoeIltIiI fKlln writing III Buyer. TM ... pn:wideI .... . . condition d obtairMng II Itn.IctUNI kIc*d In . "Spec6eI FkJod HuMI ArR;' ....... NquiN flood trIIurar1I» .... the pmperty 01' '" aecurity lor . 10M. Buyer it ~ -.new the ~ tEl meØ fI.artMr 1nq.....1II Buyer'. lender. inIunIncIegant. cw CIIher ___.... tntIt*. When concIItiarw or infonMI6on u. .. ~ 'lID the Buyer. 8~ ... give wntten notice of -rr QI<I. to ... wfthIn PubI~__c:o....In.__~__.)ot_t__ia...ui"''''_ __. wIINn calendar ~ from .' ICe. cIIcIaeI ttIiI tKt(.) In wriling ID B~. The conatruction d lIlY 1Iruct..... tar humin OCCUpulC'jloc-.clwllt1ln.IpecieIIII......_lI'IIIfbe~totheftrdngaof. b>t.geokIgIIII~lntheS&MIofCalltDml&. w-. IUCh IWXNt it __ b>t the cay 01' CounIy undIIr the ""'" BU)W II allowed CIIendar ~ ham to rnaM IurtMr Inqulriellll tppn:JpriMI govem.v~åI egenciee concemkIg the a.- d thelUtl¡eCl prtIperty Intel' SpeQaI S&ucIea ZonIIø. ancIlocaI building. zoning. .,., hMtItI and MIlly cod-. When IUCh inquiMI dIIcIoIe concIltionI ur-~" . 7 III the IIu)w. .... IhIII give wtItIen noticI d ·1I··pr-" to SeIer wtthm ifill .....Itme periOd. ........ 'II " 'I. ADDITIONAL TEAMS AND CONDlT1ONII: ONLY THE FOU.DWINQ M·IßiI...... A THROUC»IM..... NTW.LED BY BDTH -..v1R.um 88.I..ER AMIrICOfIIiIIOfIIaBJ IN"" ~. ........ ..... ...... ..... / / A. PHYIIICM. AND GEOI OGICM. INIPECfION: euy. IhIII have the righI. III Bu'jer'I....... to .... bnMcI c:ontrIcÞ(.}lIIdøtherquelltled...· . ...1J.1II,......INSPEC11OHS..(IncIudIng.....~CllherlllUdlel.inIpectIonI,_In'-rV'Qt'L. .a)dlMlUtIfect prQpM1y including tJuI·natllrnilld tEl '. ' .,...... ....IIOIIa.~. geo6ogIc condi&icxw end MWtronrnenr.l haDrdl,lUCh.. but noIlimIIIId to, M'j palOI'~genIIIIIIon,lIofIIgI....... ~........ diIpoIaI. and ~ end Iacationol...... PCB .......1,.,.. ~ producIa, fIIrrunetM ~ underground 1tcngI.... _ CIItwr huardouI, Ioxic 01' corMmI-.cJ ~ 01' condlllon, on 01' abouIthe Pfopert'j. 8u'jer IhIII Mep thllUbted propett'j ,... and cINr of ...., 111M, indemnify ancIl'IokI Seller hann6eII tJvm ... liability. cIIIlM" dMnanda. damIIQIII 01' COlla, and ..... aM dImagM to the pooperty IriIIng fn:Im the '1NSPfiCI1ONs." AI dlimed deMctI conceming the condition d the property Ö* 8dverMI'j an.ct the continued '*oflhlproJlM'jtarlhl~farwhich.iI...-e¡bIing~(D 01'. day care & housin¡¡; 'lhIIIbelnwriling.auppartIId b>t wrm.n ~ II any. end dIII'"'-d III Seller wIth6n......l- c*ender dayt tJvm ~ FOR "INSPECIlONS" arHER THAN GEOlOGICAL. and within _CIIenCIar _lor GIEOI..OGICAI.. ''INSPECTMJNS.'' Bu)w thall tumIah SetIet copie8," no COlI, of lit! ~ concerning the proper1y otJIained by B~. ......... 11 "1.oCOI~" ......... ..,........... ............. the 1VIi18bí11ty and COItII of utlllö. and ~ indudIng buI not limited to , san" , cable TV and drainage. When such inqui..... dledoM to Buyer. B~r .hIIl glYl written notice 01 disepprt)'41 to SeI.... within the 8uyIw Md SlIer ......_"'~ NJOIipI d CCJpIJ 01 thII ~ which CCInIItituteI Page 2 of _ Pagel. 8u'jer'.........( " } SelIer..lnltlalll ~{ ~ j'j-8" R"==~ RRnKFRR r,npv Gr - ~.1I1 D. "'--- 746-750 Ada Street .19_ .......~ ........... I I c. III.I.IR . _ .. mrmoN: .... ........M s.ø. hail no knowIedgI d .", notice 01 Y6Ot.öor. 01 CIty, Cou'IIy, StD, r=ecser.I. BtIIkIIng, ZonIng, FI" HMIIh CodeI Of 0I'dInenceI.. or other perri"""'" reguAIdon IIa.d or ..., ...... PftII*tY. If..... ,..,.. notice aI any such vIoIIItIona prtortDcIoee oIlIeCr'OIJ,........ knmedI*'Y notify Buyer. ~ ..1IIIowed----L-...... days.....,..¡pI 01 nouftcIIIon In ~ SeIer wrMIn natice of~' .. ø.&......... 11 .. ..___~~ ....... ......~ ............. I I D nllDmDIIOPFRarllT 1hlllf .....Y......... . I,m..."'" ..1~.......Þ...~.d, _,4 L.... "11..~.ltllll i.lI1l1.....nJi 1ft ft.~. ..-Iflllln. I<IIIIA....." 11 ......~ ............. I; ." dllllnnine lhelUilllÞ6llty 01 the property for Buyw'.11"IIIndId ..... s...,., lei rnu. ...... II. ..¡..... åudIeI or anrother mMM, ~ reprdlng 1M property inducing IIIWII, ~,.,.,.,..,., InItiIeIvee 10 II ..IO.,..~..IW...... ......- ............ / / ,,_.............._, ,.~:_2..-___ . ....__ tlnoCDllto~"'toeuv-cx:¡p.oIUW)tI."'. .- . _Md...t;þ._¡,..~'..plWpMldonSIIWsbltlllll'orInSlllr'a""""" ..,......... ............. / / 0.___......._..___.....('1_.._............_ (21__..-...._-..-_..(31-.....__..-....-_.-..._- ..,.......... appnwaI, which .... naI be UI"_~ wIIhheId. ......- ............. to..,.. kif Npec:IIcft...,.....currerI:............. ._,IIeo........ canIr.:IIMdoer. -...ci .,MITIeI'" ~ Ind pennIII operIIIonorthepruperty.~""be"'" Cllllnl:Wdlyaflom__1D~Selerlnwrlllngaf" .. -4............... ............ .......... / / L U1OPPI!L~: WMI6n _..... days from . ICe, ~ for.-.ppel C*ttIIcIIIIII..-k..-.~.. that their...... or..... __......... unrnocIIn.d MClin and IftIct. or II mDCIIIId,lIIIIng" IUCh "IOCI- .. .... WItt*I_ CIMndIr days flam . 101, SeIer.... cWMr to..,.... oerItfIc-. I"eCIMd fn:Im...... ......- ............ / / J...____1o .edendum. Such ~ tD be chftId .. 1M ...... 01 .... ..... wilt*! _ ....... .,. from _ w6thIn _..... dIya '"""..... oIlUCh toSeller.(11Ie..........,.l .........., ..,.,....... ........... . / upon baItI ..,., Ind .... appnMng . û-A.......... .... ... dIIItveNd to ball euy. Buy. .... SeIer CONR. In wrIUng, to ... __6......... __ Mdendum ..,.. may....1hII ~ or cancel.....,....... tIf prtMcIIng WIItIiIn naIicII ..... _ . _ TbeNIoM. .... I11III_..... _ .. ..._) ._.."".11» *'- -.. - PARTIAL RICONVÐ'ANCE: '"* ..,......,.. II ~ upon tIGItI Buwer Md .... ~ . pMIIII . Such MdIIndum· ... bit drIftIc . the ___ aI .. IndSellrwltt*'l ClllendllrdlrWllfKlm. _Un'-balh8u)w...Sellrc::or.-.lnwtttirlg."...,....._ .,.. ~.,. from ....... allUCh addendum, thin auy. nw¡....... requirement 01' cancel thiI ........ bt pn:MdIng __ naIicII ....... ..... ---- ..... / / L UOUtDmD IMIIMU: . '- ...11 II -"II ..... __ . _. pmIdoII ~ _ 01 ., _n II 1_ _ _ III _ _....~ II ..1l1li """"'" II 1It.d",", II1IC8ItI.........,.. .poI., _. """'" ...1011 _"'"' _I.... ......1Iy; ~, --...... by InltloIlI....... __ 1It........ _....._ _ ......l1li d.pooI! .1...._ '-'II.... _bid prapor\y II. _U.. willi. ... UIIo... ..111, OIl 01 "'1cII1III'- .............". _.......... SIll. _...... .llq._ ~.... dllOlft ICIuIIIy poId, or. ...... _, 101 ........ 501.... __ pd...... pramllly _.., _. ..,.. 1It.... ...1. ............. .11.....1....1_..... ,...-,_. CAUFORNIAASSOCIRIOII OFREAIJ1IRP _pl...._ DopoIII(RID-l1), .....,_...........~........... 11_........11_.. 101.._ _Iy 11l1li_01 ._u1I. _ II fundi ........ _. ..,-01l1li ...... "dlcilllllclllOl.IIbItnItI...)*and as its sole remedy for breach of this agreement. .. ARIITMI10I Of IIIIPUTU:..,....... _10.... _ _... ......._..., __ _..__--..-10-.......-.....-__......_---"'._ .. CIIIInIIIR..,............ II........ III ~ I ~I". ......... ......__........... 1M åtIrIIDr(I) ............ ..,....... ~ _TIII_--...........-,Io-....-..CIvtI-_TIII........_..____ CIt llØlcIII .. ~ ......... .. ......... ..,........ .. ...... I ..... II.... ......... .. lUll III'" III. COIIIrICI . ....... II CIItI CellI _1'1·..___.III...II'...__..·_·...OO.,_IIIIIcIIII_.IIIo__..._-..!II ._..._IIIr.__....._.__..__..CIvtI_1337.1.1337.1I_ TlllIII'.........IcIII_ ..-...-.....-..,......-....-..-..............-.----...-.- ..........10____ ..,._.-_........_--__10....__.._..__....... _-...,...._____...-........-...-10---_10-...- -.........- ..onCE: BY INITIAWNlIIt THE '"" IELOW YOU ARE MREEING 10 HAVE ANY DISPUTE ARISING OUT OF THE IUl'TERS INCWDED IN THE 'ARIIITMIIOII OF DISPUTES' PROVISIDII DECIDED BY NEUTRAL ARIITRATION AS PROVIDED BY CAUFORNIA LAW A/lD YOU ARE GMNG UP ANY RIGIRI mu MIGHT POSSESS 10 HAVE THE DISPUTE UTIIlATED IN A COURT OR JURT TRIAL BY INITIAWNG IN THE SI'IICE IElOW'IOU ARE IMNO UP 'lOUR JUDICIAL RIGH1S 10 DISCOVERY A/lD APPEAL. UNlESS THOSE RlGIRI ARE SPEClFICAW' INCUJOED IN THE 'ARBITRATION GF DISPUTES' PROVISIDII. IF 'IOU REFUSE 10 SUIMIT 10 ARIITRATlON AFTER MREEING 10 THIS PROVISION. YOU MAY BE COMPEWD 10 ARIITMI1 UNDER THE AUTHORITY OF THE CAUFORNIA CODE OF CML PROCEDURE. YOUR MREEMENT 10 THIS ARBITRATIDII PROVISION IS IIOWNTARY." "WE HAVE READ AND UNDERSTAND THE FOREGOING AND AIIREE 10 SUBMIT DISPUTES ARISING DUT OF THE MATTERS INClUDED IN THE 'ARIITRATION OF DISPUTES' PROVISION 10 NEUTRAL ARIITRATION." ................ ............ / / 8uyefand SeIer ..J¡._~......0I copfofthl, ~ wh6ch conItitutIM Pag1130f _ ~ Buyrs InitI* l , { ~ SeMer', Initials { \ ( , I Q Q OFFICE USE ONLY ----¡ ,,'" / ¡':::::'-"-"--I G:t o ,--- 746-750 Ada Street .18_ ,e. BUYER DISAPPROVAL: Whenever 8U)W gMI written notice of dlaappr'CNal pumwlllD Paragraph(1) 3. e. 13, 14, 15a, Uib. 1!5c. 1s., CW 15h. IIbcM. Seller shall hive ---1L CIIendIr dIyI from rwceipt of IUCh notict to rMPOftCIln writing to Buyer', dlaapprQWlll. If Seller II unwtIIng Ot ..... to conm the condItIon(l) :111 Qi"P" ItWId aI bV Buyer, or If Seller... not røpond bV.... time... forth '*-'n, then Buyer may canoeIlNI ~ bV pnMcIng wrIIIIn rICIIØ alCMOIIIIIIOn to SeIer within ~~ dI¥I from NCeIpI of ...... ~ or from ~ of1he árM...Ior............. BUYER'S FAILURE 10 GIVE WRITTEN NanCE OF Dt8APPACN'L OR CANCEIJ.ATION SHALL CONCLUSIVELY BE DEEMED APF'RCN'L. 17. OTHIR TERMS AND CONDITIONS: See Exhibit A attached hereto. 'I 'I 11. ATTORNEY" FlU: In q 1ICtian, ... II r III or"""'" MIIng out of thII.......... the....... pMy .... bI......1D .-.... ~ --- 11. ømRE CON1'RAC'n time" at Iht -. AI prior ..._._1Ia ÞItwMn'" pM6eI... L_....-.cIIn.......... which ~....... CCIfIINCL .. *"'- .. inIIIndICI .., Iht pMieI . . ... .......... of their ........ wIIh ..... aD IUCh tInnI _ .. Included ..... .... !MY naI be ...... r tt.,evidencllloI""prIor.,.,.,..OI_......pc..l*Wacnl..,........ Tht~furtherlrMlndlhlilhle........oonIIIbAIiI..oarIIPI* _ ...... -..nI oIltIlII1mI nlhli no extrtnIic............."- be Introduced In .., judicIIII or arb/nIOn ... H ... ''''' IIMIMng ...-. 20. CAPTIONS: 1M captionIln.... ~..... _.____ aI,.,.,... ontr and.. not irIIInded.. pM aiM......... 2t. NJÐICI COHFlRllATION: Tht IDIIoMnG IQM'IC¥"" 1IIhIp(~"""'" aanftrmId IDr thII nn-ction: LInING AßIN'I!: None II"'''' of (chick one): (P'mI"""....... 0_..___ o the SeIer"" ~. 01 E..L.I«I AGiIJr!; None (II.....--UoIinO_,..._..__ ................. o ~.... _LlII.II». or 0 boIh the Buyer MIl SlIer. o .. Buyer PC'" ...... or 22. AIIENDIIINTI: ThII...._._.....,_............................ OI'........In...,..... ...tr1r IWr-.....,...... ___ ..... _-.._--. ' B n. OFFER: __ "_"~~~-:.t~:-"""""'''_'' ~r....._ ...._.. _ or ".., or 6M:eimIIe, and..... bJ Buyer. the r. 01 by South Coast Title C0'A - -,.-..-....-.. , ~~,¡". ..--......- IhII bettllWMd. Surer 11M...... ~ lIICIiptof aCDP'1 of thiI after. 11*.............. and Mr .4~111Mrt, addendum Of ...otf~ ........... ..... inchdng any phC*\CCIpJ Of facIknIIt theNaf, n., be ...... in Iwo Of men ~ .. cI which Mall 00ftIIIIb.M: OM....... - wrIIng. REAL ESWE BAOKEA BUYER .... BUYEI'I - - Fax - - Fax Bmler ACCEPTANCE The ...-.vled .... accIII* IfId .... ID ... ... propertr on ... abcwe ...,.. . oc:wdtionI ... .... to ... .... _A....... of .... .' , ........(0 _..__->. __"""'''_0) N/A _...... '. lot ...... _ tDIcMI: None ....... (~ On NCOrdation 0I1he dMd Of __ wIdInoe 01 ...... or (b) II oampIIItIon 01 .... .. pMWMId bIJ .... 01 .... upon ....... ..... Of (c) II oampIIItIon 01.... pNVMed Þr"'" 01 Bu)w, only H tnd when'" coIIictI; ~ trom Buyer, .., Nt or CIdIItWIIe, and 1Mn In an..... nøI .... ... onH'IIII cllhe dMIIgII ~, buI nøI to -=- ... IIt:IoVI .... aftIr fIrII deducting tide end eecnM ..... and the ..... 01 collection, II any. StIlt... --=uIII tnd.... an -=row inIbucCiDn I~ a8IgnIng the _._ IJ1' I lot MMce In an MIOIIÑ equII to the ~ ....... to .,. tn any acØon. pnICMdIng, or arbItrIIion bIIhirMen 1kakIIr(~ and .... aMlng out 01 thIiI ......... 1M ~ pan, .... be........ to I"IIMOMbIe 1iIttDmII(I;... end OOIIL The Ln.ligfled hat NIId and ~ ~ oIa COW 01 tt* ~ and ~ -"..-.-......- - - - Fax BELLER Trolley Terrace Development. Inc. ~ .uanJ.e.1. r. ulLonneLL, rreS1uent Real E.-. BroMr(.) agrw to 1hI1I:ngøIng. - - UIIIng Broker TMphone - - of Chula .... .... Vista, a municipal corp. BUYER: By: City Fax TNI.............""_..............~TM_.. ............~ID~.._..MAaJCIIP. ~ ..................-......_.............-.:1..,...... _**-___"'...N.CJIONAL.,...,."......"""I0#' MAI.1OA8"IftII_........ID.~"'1!IIIIoI. ."~,,.4a1_PagM. /"V ------ --- E; OFFaUSE~ 3 ~breroi-ClDMIgnM_ G) - MoMO-MIr.'1 EXHIBIT A The following are additional terms and conditions to that certain Lots and Land Purchase Contract and Receipt for Deposit ("Agreement") between Trolley Terrace Development, Inc., as Seller, and the City of Chula vista, as Buyer, dated , 1994. In the event of any conflict between the terms of the Agreement and this Exhibit, the terms of this Exhibit shall govern. 1. CONDITIONS TO CLOSE. In addition to the conditions to close of escrow set forth elsewhere in the Agreement, the following conditions precedent for the benefit of Buyer must also be satisfied: a. Fundinq. Buyer shall have received, in immediately available funds, the entire amount necessary to pay the outstanding purchase price for the Property (the "Purchase Funds") from the United States Department of Housing and Urban Development HOME Investment Partnership program. In the event that such money has not been received by on or before the date five (5) days prior to the scheduled close of escrow through no fault of Buyer, then Buyer, in its sole discretion, shall have the right to extend the escrow, at no penalty, until the earlier to occur of the date five (5) days after the date that Buyer does so receive the Purchase Funds or fifteen (15) calendar days after the original date scheduled for close of escrow. b. Relocation of Existinq Tenants. Seller shall have validly terminated any and all leases with respect to the Property and relocated any and all existing tenants occupying the Property as of the date of this Agreement in accordance with relocation plans reasonably approved in advance by Buyer. c. Demolition demolished located on reasonable of Existinq Structures. Seller shall have and removed any and all existing improvements the Property in accordance with demolition plans approved in advance by Buyer. d. Approval of Phvsical Condition. Buyer shall have reasonably approved the physical condition of the Property in accordance with Section 15.A of the Agreement and this shall remain. the physical condition of the Property at close of escrow, excluding changes to the physical condition of the Property caused by Seller or its agents pursuant to Section 1.c, above. e. Approval of Title. Buyer shall have reasonably approved the condition of title to the Property in accordance with Section 6 of the Agreement and First American Title Company will be committed to issue a CLTA policy consistent with this condition of title at close of escrow. /9-1/ f. Completion of Environmental Review Process. Buyer shall have approved, in its sole discretion, a Negative Declaration regarding the environmental impacts of the Property and shall have otherwise completed the environmental review process in accordance with state CEQA and federal NEPA laws. 2. NON-SATISFACTION OF CONDITIONS. In the event that any of the conditions to close set forth in this Agreement for the benefit of Buyer are not satisfied, Buyer shall have the right to terminate this Agreement by written notice to Seller and to Escrow Agent. Upon receipt of such notice, Escrow Agent shall immediately refund Buyer's $10,000 deposit, less any escrow termination fee imposed thereby, and neither party shall have any further obligations hereunder. 3. PORTION OF PURCHASE PRICE WITHHELD. As a condition precedent to the distribution to Seller of Eight Thousand Dollars ($8,000.00) of the purchase price, Seller shall submit to Buyer a full statement of the costs incurred by Seller in the performance of Seller's relocation and demolition obligations pursuant to sections 1.c and 1.d, above. Buyer shall reasonably approve on disapprove such costs within three (3) business days of its receipt thereof. To the extent that the submitted demolition and relocation costs approved by Buyer (the "Approved Costs") equal or exceed $8,000, the entire $8,000 amount of the withheld purchase price shall be immediately distributed to Seller. To the extent that the Approved Costs are less than $8,000, the amount of the withheld purchase price equal to the Approved Costs shall be immediately distributed to Seller and the remaining amount of the withheld purchase price shall be distributed to Buyer. 4. SELLER'S REPRESENTATIONS. Seller agrees, represents and warrants, as of the date of execution of this Agreement and as of close of escrow, as follows: a. Authoritv. Seller is a corporation, duly formed, existing and in good standing under the laws of the State of California; Seller has full legal right, power and authority to execute and fully perform its obligations under this Agreement pursuant to its governing instruments, without the need for any further action; and the persons executing this Agreement and other documents required hereunder on behalf of Seller are the duly designated agents of Seller and are authorized to do so. b. Eminent Domain. Seller has no knowledge of any pending, proposed or contemplated condemnation of the property or any portion thereof. c. Encroachments. To the best knowledge of the Seller, there are no encroachments on the property by any improvements located on any adjoining premises. I~ ... /.2. d. No Assessments. To the best knowledge of the Seller, there are no intended public improvements which will result in any charge being levied or assessed against or in the creation of any lien upon, the property, or any portion of the property. e. Enforceabilitv. This agreement and all documents required to be executed by Seller in connection herewith shall be valid, legally binding obligations of Seller, enforceable in accordance with their terms. f. Leqal Proceedinqs. To the best of Seller's knowledge, no litigation, proceeding or governmental investigation is pending or, threatened in connection with the property or the transaction provided for herein, and Seller is not aware of any basis for any such litigation, proceeding or investigation. g. Liens: Seller certifies there are no liens, encumbrances, claims, covenants, conditions or other restrictions or exceptions affecting title to the property, except as indicated in the Preliminary Title Report to be provided to Buyer pursuant to section 6 of the Agreement or as otherwise provided therein. h. Hazardous Materials. Seller represents and warrants that, except as disclosed to Buyer in writing within five (5) calendar days after the opening of escrow, to Seller's best knowledge: (1) There are no Hazardous Materials (as defined herein) in existence on the property, or within any surface or subsurface waters or sub-soil thereof; (2) no tanks have been located on or below the surface of the property, and (3) there are no substances or conditions in or on the property which may support a claim, cause of action or liability under any Hazardous Materials Laws or to any third party. All tests, surveys and assessments to determine the presence of hazardous materials, as defined below shall be paid for by the Seller. The type of tests, surveys and assessments regarding hazardous materials will be mutually agreed to between Purchaser and Seller. "Hazardous Materials Laws" means any and all federal, state or local laws, ordinances, rules, decrees, orders, regulations or court decisions relating to hazardous substances including, but not limited to, nuclear, chemical, biological, biochemical hazardous materials, hazardous waste, toxic substances, environmental conditions on, under or about the property, or soil or groundwater conditions. including, but not limited to, the Resource Conservation and Recovery Act, 42 U.S.C. section 6901, et seq., the Comprehensive Environmental Response, Compensation and Liability Act, 142 U.S.C. Section 9601, et. seq., The Hazardous Materials Transportation Act, 49 U.S.C. section 1801, et seq., the California Hazardous Waste Control Act and the Carpenter- Presley-Tanner Hazardous Substance Account Act. Cal. Health & Safety Code section 25100, et.seq., and section 25300, et. ~, the Safe Drinking Water and Toxic Enforcement Act, Cal. /Cj-/J Health & Safety Code section 25249.5, et.sea., the Porter- Cologne Water Quality Control Act, Cal. Water Code section 13000, et.sea. , and any amendments to, and regulations implementing, the foregoing. "Hazardous Materials" means substances which are flammable, explosive, asbestos, radioactive or toxic, and any substances defined or regulated as hazardous substances, hazardous materials, toxic substances or hazardous waste under any Hazardous Materials Laws. Seller shall indemnify, protect, hold harmless and defend Buyer (and Buyer's officers, directors, employees, agents, successors and assigns) from and against all liability, claims, damages, costs, expenses, suits or judgments arising out of Seller's breach of the foregoing representations, including, but not limited to, all foreseeable and unforeseeable consequential damages and the costs of any testing, removal, cleanup or other remedial work. i. Survival of Warranties. All such representations and warranties shall survive the close of escrow. 2. MUTUAL REPRESENTATIONS AND INDEMNITIES. a. Real Estates Commissions. Each party represents and warrants to the other party that no brokers or finders have been employed or are entitled to a commission or compensation in connection with the transaction contemplated by this agreement. Each party agrees to protect, defend, indemnify and hold harmless the other party for any such other commission or compensation claimed through such party. b. Litiaation Indemnitv. Seller hereby agrees to indemnify, hold harmless and defend Buyer from and against all losses, damages, costs and expenses, including, without limitation, reasonable attorneys' fees and court costs, incurred by Buyer subsequent to the date of this contract by reason of any litigation against Seller or others relating to the property or arising from acts, occurrences or matters that take place prior to the closing. Buyer hereby agrees to indemnify, hold harmless and defend Seller from and against all losses, damages, costs and expenses, including, without limitation, reasonable attorneys' fees and court costs incurred by Seller subsequent to the date of this contract by reason of any litigation against Buyer or other relating to the property and arising from acts, occurrences or matters that take place on or after the closing date. SELLER'S INITIALS BUYER'S INITIALS /9' /f COUNCIL AGENDA STATEMENT Item ;.1) Meeting Date 7/19/94 ITEM TITLE: Report on Appointment of Council Member to SANDAG Housing Advisory Committee SUBMITTED BY: Director of Planning i ' S . Director of Community Dy~lopment ( - City Manager JG 'cr~J (4/5ths Vote: Yes_No..K) REVIEWED BY: The SANDAG Board has approved the establishment of a committee to review existing state housing element laws and current legislation. The SANDAG Executive Director has requested the appointment of a member of the Chula Vista City Council to this committee. RECOMMENDATION: That City Council select a member to participate on the SANDAG Housing Advisory Committee. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The specific purpose of the proposed SANDAG housing advisory committee is to evaluate existing laws pertaining to preparation of local housing elements, and consider revisions to the law which would allow jurisdictions to emphasize production of housing, simplify the planning process, and promote local flexibility in providing low and moderate income housing (see attached letter). Membership on the committee will include several local elected officials, as well as construction and housing development industries, the financial sector, affordable housing advocacy groups, and nonprofit housing agencies. The City of Chula Vista has taken a proactive approach in the adoption and implementation of its Housing Element and affordable housing programs, and has been able to comply with existing State law. However, it would be beneficial for the City to participate in an evaluation of ways in which the law could be modified to make the process more efficient, and focus limited resources on housing production activities. Therefore, it is recommended that the City Council appoint a member to this committee. However, if the Council does not wish to designate a member of the Council to this committee, another option would be to direct the City Manager to designate an appropriate staff member. FISCAL IMPACT: None. (F: \home\planning\SandHous .al1) ,)..0-/ ("(0- . -n:l1n"llft'\AtTI~r. ",n all^",_ .....lI.ftI...n.... ....nll'l..,.. ................... " :¡'!'~~ , ~i>~ '"-:~~': . ..~ ~ .' \;'.~/ '~~7::',,-' The Honorable Rudi M. Brewster July 1.4, 1.994 Page 3 We appreciate the Court's attention to Chula vista's comments. Again, we would offer to present the Court with additional information on any or all of these complex points upon request, as this letter really only touches the surface of each complex issue. sincerely, LAW OFFICES OF D. DWIGHT WORDEN Af!]j;a1 !::;tion D. Dwight Worden, Special Co-Counsel for city of Chula vista DDW:dl c: Bruce Boogaard, Chula vista City Attorney John Lippett, Chula vista Engineering Chula vista City Counsel All Counsel cJ{) -3 ;:;., '-r.- .;~,_. ";~... " ","~. ':" ;:.:~ ~" ...~;:/ ~t '.- / The Honorable Rudi M. Brewster July 14, 1994 Page 4 SERVICE LIST Hugh Barroll, Esq. Asst. Regional Counsel EPA - Region IX - RC/4 75 Hawthorne Street San Francisco, CA 94105 William M. Benjamin, Esq. Benjamin & Sutton The Chamber Bldg., Ste. 2020 110 West "C" Street San Diego, CA 92101 Bruce M. Boogaard, Esq. city Attorney City of Chula vista 276 Fourth Avenue Chula Vista, CA 91910 Ted Bromfield, Esq. Chief Deputy city Attorney 202 "c" street, 3rd Floor San Diego, CA 92101 Karen S. Dworkin, Esq. Trial Counsel U.S. Dept. of Justice Box 7611, Ben Franklin station washington, D.C. 20044 J. Bruce Henderson 4294 Kendall Street San Diego, CA 92109 Mark C. Mead, Esq. County of San Diego Office of the County Counsel 1600 Pacific Highway, Rm355 San Diego, CA 92101-2469 Jamee Jordan Patterson, Esq. Dep. Attorney General State of California Land Law Section Public Rights Division 110 West A Street, Suite 1100 San Diego,CA 92186-5266 Fax No. (415) 744-1041 Phone No. (415) 744-1321 Fax No. (619) 233-6066 Phone No. (619) 235-6161 Fax No. (619) 585-5612 Phone No. (619) 691-5037 Fax No. (619) 236-7215 Phone No. (619) 236-6469 Fax No. (202) 514-2583 Phone No. (202) 514-4084 Fax No. (619) 273-4047 Phone No. (619) 273-4047 Fax No. (619) 531-6005 Phone No. (619) 531-4891 Fax No. (619) 645-2012 Phone No. (619) 645-2023 ;¿ ()_ L/ ~~';;;~ ..~.~ ',-, ~, ~..// ~~,/ stephen V. petix, Esq. Asst. U.S. Attorney Office of the U,S. Attorney Southern District of Calif. 940 Front Street, Rm. 5152 San Diego, CA 92101-8800 John Richards, Esq. Staff Counsel State of california Water Resources Control Board 901 IIp'' Street Sacramento, CA 95814 Robert L. simmons, Esq. U.S.D. School of Law P.O. Box 19932 San Diego, CA 92119 Tom Woodruff, Esq. Rourke, Woodruff & Spradlin 701 South Parker Street suite 7000 orange, CA 92668 James J. Dragna, Esq. Mccutchen, Doyle, Brown & Enerson 355 So. Grand Ave., Ste. 4400 Los Angeles, CA 90071-1560 The Honorable Rudi M. Brewster July 14, 1994 Page 5 Fax No. (619) 557-7122 Phone No. (619) 557-5662 Fax No. (619) 653-0428 Phone No. (619) 657-2088 Fax No. (619) 260-2218 Phone No. (619) 464-0325 Fax No. (714) 835-7787 Phone No. (714) 564-2605 Fax No. (213) 680-6499 Phone No. (213) 680-6436 ;2Y-S · . FEDERAL DISTRICT COURT FOR COURT USE ONLY TITLE OF CASE (Abbreviated) U.S. v. city of San Diego ATTORNEY(S) NAME ADDRESS TELEPHONE (619) 755-6604 LAW OFFICES OF D. DWIGHT WORDEN A Professional corporation 462 stevens Avenue, suite 102 Solana Beach California 92075 ATTORNEY(S) FOR: HEARING DATE-TIME-DEPT CASE NUMBER city of Chula vista BB-1101-B DECLARATION OF SERVICE BY MAIL I, the undersigned, declare that: I am over the age of eighteen years and not a party to the action; I am employed in the County of San Diego, California, in which county the within-mentioned mailing occurred; my business address is 740 Lomas Santa Fe Drive, suite 102, Solana Beach, California 92075; I am familiar with our business' practice for collecting, processing and mailing correspondence and pleadings with the united States Postal Service. Such correspondence and pleadings are deposited with the united States Postal Service on the same day that it is placed for mailing in the ordinary course of business. I served the following document(s): LETTER IN SUPPORT OF PROPOSED ORDER LANGUAGE SUBMITTED BY DEPUTY COUNTY COUNSEL MARK MEAD. on the parties in said action by placing a true copy thereof in a separate sealed envelope for each addresse named hereafter, addressed to each such addressee respectively as follows: SEE ATTACHED SERVICE LIST thereon fully prepaid, placed it for mailing in accord with our business' practice on July 15, 1994, at Solana Beach, California. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed on July 15, 1994, in Solana Beach, California. ~ f¿. .pJ...u- Rita R. Pardee PROOF OF SERVICE BY MAIL _ / ~ (C.C.P. § 1013a(3) and 2015.5) ;2¿? /~ * , 1 2 3 4 5 6 7 8 9 10 11 12 13 ~ ~~1~ ~,tj LLOYD M. HARMON, JR., County Counsel (state Bar ID No. 32505) County of San Diego DIANE BARDSLEY, Chief Deputy (state Bar ID No. B1525) By MARK C. MEAD, Deputy (State Bar ID No. 117469) ,1'- 1600 ~acific H~ghwa~, Room 355 . '"\ \'? \ - '.! Q) San D~ego, Cal~forn~a 92101-2469 ;S'V, ,.r;T1,l 'i'.,/ Telephone (619) 531-4891 ........::.7 t?f'lfdh' ":9 Attorneys for Amicus curiae County of San Diego v"'":: JUL " , \ C- -::. Clly ! 8 1994.. ("_ '1110, :t-..- Chula v.' .{..;( ~ -ow ,I.fa, Ca. ~0-.::1 \. - UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OP CALIPORNIA UNITED STATES OF AMERICA, and STATE OF CALIFORNIA, ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) civil No. 88-1101-B(IEG) AMICUS COUNTY OF SAN DIEGO'S BRIEF ON THE INTERIM ORDER Plaintiffs, v. Date: Time: Place: Judge: June 23, 1994 9:00 a.m. Courtroom 2 Hon. Rudi M. Brewster 14 CITY OF SAN DIEGO, 15 Defendant. 16 17 SIERRA CLUB OF SAN DIEGO, EMILY DURBIN, and BRUCE HENDERSON, 18 Intervenors. 19 20 Amicus county of San Diego (County) respectfully submits this 21 brief on the Interim Order. The county requests that the Interim 22 Order clearly state that it does not affect existing contractual 23 rights. At the June 23, 1994, hearing on the Interim Order, the Court 24 agreed with this position. 25 THE INTERIM ORDER SHOULD CLEARLY STATE THAT IT DOES NOT AFFECT 26 - - --EXISTING CONTRACTUAL RIGHTS 27 The city of San Diego (City) should not gain a contractual 28 advantage over the other agencies in the Metropolitan Sewerage system 20'/ ,. 1 (Metro System) simply because the Interim Order includes the North 2 City Water Reclamation Plant. Therefore, the Interim Order should 3 clearly state that it does not affect existing contractual rights. 4 The City is under no legal obligation to construct the North City 5 Plant. The Clean Water Act does not require water reclamation. There 6 is no consent decree in effect or proposed consent decree under 7 consideration that would require the city to construct the North City 8 Plant. There is no judgment following a trial requiring the City to 9 construct the North city Plant. The City is, nonetheless, proceeding 10 to construct the North city Plant apparently pursuant to the 11 Consumers' Alternative previously adopted by the San Diego City 12 Council. 13 The existing Sewage Disposal Agreements between the City and the 14 other agencies in the Metro System specifically provide that any water 15 reclamation undertaken by the city shall be at the City's sole cost. 16 Section 28 of the Sewage Disposal Agreement of 1960 states, in part, 17 "At any time during the term of this agreement or any extension thereof, City, at its own expense, may and shall 18 have the right to reclaim water from any sewage in The Metropolitan Sewerage System and to install at any place or 19 places in such System works or facilities for the reclamation of water from sewage. The cost of such 20 reclamation of water shall be the sole expense of City. but the Particioatina Aaencv shall remain liable for its oortion 21 of M & 0 exoenses Cincludina orimarv sewaae treatment and disDosal). .. " (Emphasis added.) 22 23 The sewage Disposal Agreement of 1974 includes virtually identical 24 language in section 25. 25 The agreements also include a section on operation and 26 maintenance (not cons~ruction) in which the city agrees to operate the 27 sewer system in accordance with all laws. Section 7 of the Sewage 28 Disposal Agreement of 1960 states in part, . -2- 020 /' g/ 1 "City agrees to convey, treat (including chlorination if required) and dispose of all sewage received into The 2 Metropolitan Sewerage System under the terms of this contract in such manner as to comply with all applicable 3 laws, rules and regulations." 4 The Sewage Disposal Agreement of 1974 includes identical language in 5 section 7. 6 Absent this lawsuit by the federal government, there would be no 7 question that under the existing agreements, the City alone would have 8 to pay for the cost of the North City Plant. No law, rule or 9 regulation would require the City to construct the North City Plant. 10 Consequently, sections 28 and 25 of the existing agreements would 11 require the City to pay for the North city Plant. 12 However, the City has clearly indicated that it will attempt to 13 allocate the costs of the North City Plant among the other agencies in 14 the Metro System on the basis that the Interim Order requires the City 15 to construct the plant.' The city will presumably argue that the 16 Interim Order requiring ~he City to, construct the North City Plant is 17 a "law, rule or regulation" with which the City must comply. Thus, 18 the City will further argue, it is not obligated to pay for the entire 19 cost of the North City Plant, but can allocate the costs of the plant 20 among all the agencies in the Metro System. However, it would be 21 unfair to the other agencies in the Metro System for the Court to give 22 III 23 III 24 III 25 1 At the June 23, 1994, hearing, the Cities of Chula Vista, 26 Imperial Beach;"El ~~on and La Mesa made it clear that they, too, believe that the City of San Diego will use the Interim 27 Order to try to allocate the costs of the North City Plant among the other agencies. 28 -3- ;¿ 0 .~ I 1 the City a contractual advantage when the City is under no legal 2 obligation to construct the North City Plant.2 3 At the June 23, 1994, hearing on the Interim Order, the Court 4 clearly stated that it did not intend the Interim Order to affect 5 existing contractual rights. For example, the Court stated, 6 "No, I don't exactly regard it [the Interim Order] as neutral. All I view here is that the order is not intended 7 to alter or amend any existing contract and, furthermore, that whatever rights the parties have in their contract 8 should be unaffected by the order." JExh. A, Transcript of June 23, 1994, hearing, p. 28:17-21.) 9 10 The County, therefore, requests the following changes to the June 11 21, 1994, draft Interim Order proposed by the City: 12 1. Page 1, line 25, delete the word "orders" and on line 26 13 delete the word "by" and add the word "completion" so that the 14 sentence reads: 15 "A. CONSTRUCTION PROJECTS 16 "The Court accroves of the program of construction of the following facilities and the specified completion dates where noted, all as listed in the 'Consumers' Alternative' or as otherwise suggested by the city: ,,4 17 18 19 2 Negotiations to establish a new waste water district, 20 including how costs would be allocated, are currently in progress. The agencies that join the new district should also be 21 free to agree among themselves how the costs of the sewer system will be allocated without any member agency having an advantage 22 just because the North city Plant is included in the Interim Order. 23 24 3 Exhibit A is pages 17-34 of the transcript of the June 23, 1994, hearing on the Interim Order. The Court repeatedly 25 stated that the Interim Order should not affect existing contractual rights. (See pp. 17:15-23, 19:4-14, 20:1-4, 25:15- 26 20, 26:17-23, ·27:7-1't)~ and 29:5-11.) 27 28 the the , The Court may City to construct North city Plant. conclude that it is appropriate to order the facilities and improvements other than In that case, the language proposed above -4- ;¿ð ~ /0 1 2. Page 13, line 12, add the following as Paragraph F: 2 "F. NO EFFECT ON EXISTING CONTRACTUAL RIGHTS 3 "The Court hereby declares that this Order shall not be 4 deemed to alter or amend the rights of any party to any existing contract that has not been presented to and decided 5 by this Court. Any such contractual rights of any party to a contract, including, but not limited to, the Sewage 6 Disposal Agreements of 1960, 1972 and 1974 between the City of San Diego and the Participating Agencies and Later 7 Participating Agencies, shall be unaffected by this order." 8 The County does not oppose water reclamation and does not oppose 9 the construction of the North City Plant. However, the costs of that 10 plant should be allocated strictly according to the existing sewer 11 agreements or any new agreement entered into among the agencies in the 12 new waste water district. The Interim Order should not affect the 13 allocation of those costs. 14 DATED: 'JH ' f Respectfully submitted, LLOYD M HARMON, JR., County Counsel DIANE BARDSLEY, Chief Deputy BY~C~ MARK C. MEAD, Deputy Attorneys for Amicus County of San Diego 15 16 17 18 19 20 21 should apply just to the North city Plant, and language ordering construction would apply to the other facilities and 22 improvements. Thus, Section A would read as follows: 23 "A. CONSTRUCTION PROJECTS: 24 "The court approves of the construction of the North City Water Reclamation Plant and the specified 25 completion date. 26 "The Court approves and orders the construction of the following facilities by the specified dates where 27 noted, all as listed in the 'Consumers' Alternative' or as otherwise suggested by the City: . . . ." 28 [Start with Sludge Facilities] -5- ;20 ..-11 ~ UNITED STATES DISTRICT COURT WJ Uti ~ ~ ~ mJ ~~ SOUTHERN DISTRICT OF CALIFORNIA UNITED" STATES OF AMERICA, ) ) ) ~ 'Case No. 88-1101-B ) ) ) ) Plaintiff, vs. CITY OF SAN DIEGO, Defendant. - - - - - - - - - - - - - - - TRANSCRIPT OF EXCERPTED PORTION OF STATUS HEARING Taken in San Diego, California June 23, 1994 BEFORE THE HONORABLE RUDI M. BREWSTER Echo Reporting, Inc. 7046. "Ender.s~ Avenue San" Diego;-California 92122 (619) 453-3325 EXHIBIT A -.. ;20 1~ . J.7 J. something happens, and the District doesn't go forward a 2 year from now, and it all reverts back and it's the City, 3 they simply don't want -- I mean, if they -- even then, it's 4 hypothetical, but if they get into a legal fight with the 5 City about the reclamation portions of the North City plant 6 as to whether they should pay any or all portions of that 7 cost, they don't want to have to not only answer a whole list of arguments by the City fOllc:wed by one more, namely, your order that says -- and have the City people come over 8 9 J.O and say, "Aha, Judge Brewster ordered this and therefore you J.J. lose this arbitration. II That' s the only real concern I J.2 believe they have and I understand that. I can't address J.3 it, though, from the District, because we don't take that J.4 position, but they're J.5 J.6 THE COURT: Okay, I understand your position. Let me suggest this to you. It wasn't the contemplation of this ~ J.7 Court that orders that it would be making with respect to 18 bringing this community into compliance with whatever law J.9 we're going to be complying with would have any impact on 20 contracts that were made or agreements that were entered 2J. into among the member agencies. That was not the Court's 22 contemplation. I had no view in my own mind that I was 23 doing that. I had no idea I was doing that. 24 MR. WOODRUFF: Your Honor, the position of the 25 District is in support of that. It was not our EXHiBIT A cJj} /!) Echo Reporting, Inc. (619) 453-3325 . .-..-. . . 18 1 contemplation. We don't envision that. It's not before the Court. and I don't think counsel are in fact urging the Court. I think everyone recognizes it's not there, but 2 3 4 they're just nervous, based on how I just outlined it, and 5 they -- you know, if they could get some tempering language 6 or something, I think, as Mr. McDougal suggested, that's 7 their concern. But, I would agree. 8 MR. McDOUGAL: Thank you, your Honor, and frankly, 9 I think, if I could have a transcript of what you just said, 10 that you shall not hear from me anymore. Thank you. 11 THE COURT: Well, if you've got any money, wé 12 13 could sell you a transcript. That's easy. MR. DRAGNA: Your Honor, if I could make just a " 14 quick point on this issue. This is, as is obvious ,from the 15 discussion, a very politically sensitive issue. There are 16 negotiations, frantic negotiations, that are going on among 17 the cities, among the City of San Diego, either under the 18 District umbrella or outside the District umbrella. I think 19 whatever in fact the Court's order has, as a matter of law, 20 under those agreements, is to be decided in another arena. 21 I think that we should -- 22 THE COURT: I'm not sure what you mean exactly by 23 that, but let me suggest this to you.·' The order can be 24 drafted -- and now that you've sensitized me -- and I read 25 this point in the papers before we started the hearing this.· EXHiBIT A c2ó~/ i Echo Reporting, 1m (619) 453-3325 . . 19 1 afternoon. I'm aware that that's a point of contention. At 2 least I was aware of it with respect to Chula Vista. Now, I 3 understand it's perhaps a sensitive point with other 4 communities as well. I don't see any reason why the order could not provide whatever interim orders are entered' with ~ 5 6 respect to capital improvements or to maintenance or 7 operation and upkeep and so forth. I don't know why the 8 order could not specify that the order outlining what's 9 going to be accomplished, in order-to bring the entire 10 community into compliance with whatever is going to he the 11 law that it has to comply with, can't be entered into bY'~he 12 Court without prejudice to whatever contractual rights or 13 arrangements are being made legislatively and politically 14 within th~ community. 15 MR. DRAGNA: My point, your Honor, is there are 16 contracts that exist that need to he interpreted. No one 17 really knows what those contracts and agreements really 18 mean, and to the extent that this order is without prejudice 19 to either position -- I don't think anyone has any dispute 20 over that -- let's let the forum that those contracts are 21 litigated under decide what impact, if any, this order has 22 from this Court. That's all. I think that's the most 23 politically sensitive way to get out of, this topic. . 24 25 THE COURT: Do you agree with that statement? MR. BOOGAARD: I just want to clarify, your Hc~or. EXHiBIT A 020 ~)5' Echo Reporting, Inc. (619) 453-3325 . . ---.,--- 20 1 Are you suggesting that the order will be modified with the 2 provision that says nothing herein will affect the rights of ~ 3 the parties under the agreements? 4 THE COURT: That's right. MR. BOOGAARD: It's the next best thing to 5 6 removing it, so that would be satisfactory. 7 MR. DRAGNA: Your Honor, just so that it's clear, 8 I think that statement has a subs~antive impact. I think to 9 really be prejudice mutual, I think the provision in the 10 order should say that this order shall not prejudice the 11 rights of any party under the contracts, and then let the 12 parties argue what the order means in ths forum in which that contract is being litigated. THE COURT: If that has to be arbitrated or if it 13 14 15 has some administrative body that it has to be decided on, 16 or some other court. 17 MR. DRAGNA: I think the fair import of this is 18 that -- and I don't have a position. I'm not involved in 19 the negotiations with the District. I'm not involved in the 20 negotiations between the City and the District. I think . 21 that to be fair, if those contracts are ever litigated, the 22 subject of what impact this order has, if any, on those 23 contracts need to be decided without prejudice from the 24 Court in this situation and simply let the issue be 25 litigated when it's litigated, if it ever is litigated. EXHIBIT A --20-/ Þ Echo Reporting, Inc. (619) 453-3325 , 2J. J. MR. WOODRUFF: The District concurs in that, your 2 Honor. 3 THE COURT: All right, let's pass that issue. I 4 think that we all understand each other, but having said 5 that, Mr. Booga~rd, I would hope that the district cóuld go 6 forward with a hundred percent membership in this sewer 7 system so that we aren't dealing with two or three different 8 agencies to run the sewer system of this county. I mean, it - 9 would be a shame if we had Chula Vista and the District and J.O maybe Imperial Beach and maybe EI Cajon, maybe Santee -- I 11 don't know. But, it would be a shame I think the .' J.2 concept, if it is to come up with one organization called J.3 this District and give everybody representation so their J.4 voices cûn be heard in the strength that they are justly J.5 entitled to be heard -- that should satisfy everyone. J.6 MR. BOOGAARD: Well, there's a lot, your Honor, J.7 that's gone on in the formation of the District that you're 18 not familiar with and there's rights that Chula Vista 19 had -- we believe that there's nothing additional gained by 20 participation, but we will continually consider membership 2J. in the District and we will also keep our other options 22 open. I guess it's not the time now to go into it. 23 THE COURT: Well, you know, the point was made by 24 Mr. Woodruff that the formulas for allocating expenses and 25 capital expenses and operating expense and revenue and so EXHIBlï A :ló - I 7 Echo Reporting, Inc. (619) 453-3325 . I 22 1 forth may vary from function to function. There may be a 2 different formula for capital investment. There may be a 3 different function for sharing operating expenses and so 4 forth. He pointed that out a few moments ago. Well, fine, 5 if that's the thing that the board comes up with in its 6 democratic way they come up these formulas and you all agree 7 to them, then you are accomplishing -- it seems to me, you 8 are accomplishing what I said, Wh~~h is that whatever 9 formulas you come up with for distributing, or imputing 10 revenue as well as expenses should be able to benefit all of 11 the members of that particular formula, whatever they are. 12 For example, if Chula Vista isn't involved in the capital 13 improvement formula for North City West, if they're not 14 being expected to help pay for that, then they shouldn't 15 have any worry about paying for reclaimed water. But, on 16 the other hand, if reclaimed water is generated and if it is 17 sold, then I would expect that the system for imputing the 18 revenue from that would be a formula very similar, if not 19 identical, to the formula which pays for the plant. You're 20 not going to have one formula for distribution of revenue 21 and another one for the payment of the capital expenses. 22 So, if Chula Vista isn't involved in the North City plant's 23 construction or operation or maintenance, the problem is 24 they're going to be involved in the distribution of income. 25 MR. DRAGNA: I think -- as the testimony that was Z~:HiB'T A c2/1 --- / Echo Reporting, Inc, (619) 453·3325 .. ---- -'--~'-""-'-"--'---~"'-"- . 23 1 elicited in the last trial, these reclamation facilities 2 will be net losers for many, many years. There won't be a 3 significant amount of revenue coming in. They will be in" 4 the red for many years. 5 THE COURT: That may be se. That may be so, but 6 let's all be reminded of one thing. Sometimes we can be 7 penny-wise and dollar-foolish. And this country, this 8 county, this Southern California area -- I could be totally 9 wrong, I wish I were wrong, but from whatever I read and 10 whatever I see, and you're all reading the same things I'm 11 reading, newspapers, magazines and everything, we are 12 entering into a millennium where water is going to be ·~s 13 precious as gold, and if we don't get on top of it and get 14 smart about conserving water, it's going to be very, very 15 bad. So, reclaimed water plants are imminently in the 16 public interest if they can be done. So, I applaud the City 17 for building the North City plant as a reclamation water 18 plant and I recognize you're not going to be able to use all 19 of it right now at the beginning. But, you will have the 20 plant with the capability of producing it, and when you can . '21 distribute it, that's fine, and if you can take the next 22 step and go from tertiary, which is what it's designed to 23 be, a tertiary plant -- it's not a reclaimed water plant, 24 it's a tertiary water plant. If you could take the next 25 step and go from tertiary to reclaimed water so that we can EXHIBIT A 020 ~ Ii Echo Reponing, Inc. (619) 453·3325 24 1 reuse all the water of that plant, that's the plant of the 2 21st century and that's the kind of thought that should be 3 going into this whole problem, because we're going to have 4 serious water problems in this area of the state. 5 MR. BOOGAARD: Your Honor, I guess I've been 6 reprimanded about the attitudes of the City of Chula Vista 7 and I have to clarify that Chula Vista was one of the first 8 to have a water conservation ordinance. We've required 9 double plumbing of all of our devëlopments to the east to 10 handle tertiary water. We would very much like to have a 11 tertiary plant within the territory or sphere of the City of , 12 Chula Vista and we're not opposed to that. We're opposed to 13 this order because it has consequences of distributing costs 14 differently from that which are set by agreements and by 15 understandings. 16 THE COURT: Well, let me stop you. Two things to 17 say to you. Number one, I hope that by this colloquy, we 18 have alleviated your concern on that score, and number two, 19 I was not aware that I was admonishing the City of Chula 20 Vista. 22 23 MR. WOODRUFF: Thank you, your Honor. THE COURT: Now, with respect to the order MR. MEADE: Your Honor, I'm sorry, but if I might, -21 24 this would probably be the appropriate time. The County's 25 objection to the interim order is exactly the same as , EXHIBIT A c2ú~c20 Echo Reporting, Inc. (619) 453-3325 . . 25 1 expressed by Mr. Boogaard and Mr. McDougal. 2 THE COURT: So, I assume that this colloquy is 3 also satisfactory to you. 4 MR. MEADE: Well, I think the County would be more 5 satisfied if the order stated that the cost -- the . . 6 allocation of the costs on the North City plant would be in ~ 7 accordance with the 1960 agreement or the agreement worked 8 out by the new District, and would not 9 THE COURT: Well, that would require the Court, I 10 think -- that would require the Court, I think, to go in an ~ . . 11 analyze all these agreements. I'd like to stay out of that 12 because I question, frankly -- I suppose it could be argued -' 13 that the Court has jurisdiction because it's intimately 14 rela=ed to what we're doing, but is it necessary to exercise 15 jurisdiction over -- I think it's enough if the Court just 16 says that these orders are not intended to prejudice any of 'ft' 17 the parties' prior rights under contract, and those rights 18 will be determined by the parties as they may see fit, but 19 that this order will not be intended to drive anybody's 20 contractual rights. . ·21 22 MR. DRAGNA: In either direction. THE COURT: In either direction, up or down, left 23 or right. 24 MR. DRAGNA: Well, then, that neutralizes it. 25 MR. WOODRUFF: That's the position of the District .' EXHIBIT A c2v-c2j Echo Reporting, Inc. (619) 453-3325 . . 1 , 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 as well, your Honor. THE COURT: I thought that was the position of the County as well. MR. MEADE: Well, for the record, we're just objecting if the City of San Diego wants to use this order as a basis for saying, "You now have to pay for certain costs of the North City plant." That's all we're concerned about. THE COURT: I think we've passed that. MR. DRAGNA: Your Honor, the contract means what the contract means and we ,don't know what that means yet.' At some point, if there is ever a dispute, that would'be litigated, and one of the issues litigated would be, what are the impacts of all the prior orders from the very beginning of time on those various contracts. I think the Court is correct in saying, "I don't want a part of it." THE COURT: Well, furthennore, the Court is saying that it did not -- it did not have any intent when it entered all these orders that you're speaking of -- the Court had no intention of attempting to influence or dictate the contractual rights that were already in place. I wasn't even aware of them. For all these orders, I wasn't even ~ . aware of it. MR. BOQGAARD: That puts it back at issue again, your Honor, that we're at risk by this order and need to E~:H'BIT A ;¿ tJ - 2. d... Echo R~porting, Inc. (619) 453-3325 . 27 1 debate its merits of including it. Because the City 2 is -- as to non-member cities like Chula Vista and anyone 3 else who falls out, and there's a year back-out provision in 4 the contracts, the City of San Diego will then use this 5 order to assert the right to charge for water reclamation 6 because of the applicable rules, regulations and laws. 7 THE COURT: Well, no, their rights to contributions from member agencies is going to have to d 8 9 depend on other contracts that are in place, not on the 10 order of this Court. 11 . . MR. BOOGAARD:That's all we needed, your Honor. 12 -- MR. DRAGNA: Your Honor, ju~t for clarification, 13 because we're litigating this outside the forum in which 14 it'z going to be litigated __ 15 16 it. THE COURT: No, no, you're not. You're mediating 17 MR. DRAGNA: The contracts have language that may 18 or may not be interpreted that gives import to prior orders. 19 We understand the Court is making clear that you don't 20 intend that this order is to prejudice any party's position 21 in either direction. 22 THE COURT: Nor any of the orders that the Court 23 has heretofore -- 24 MR. DRAGNA: And that is not to say that any party 25 here may not argue as an interpretational point under those EXHIBIT A c20 '~;J Echo Reporting, Inc. (619) 453-3325 · o .. 28 1 contracts that those orders mean or mean not something. 2 Every party is free to take whatever position they take at 3 the time those contracts are litigated. That's all we're 4 saying. We don't have a substantive position what these 5 orders -- we just want the record to be clear that the 6 contract and the scope of the contract would be interpreted 7 in another forum. We don't have to address the issue of 8 those contracts. 9 MR. BOOGAARD: Your Hoñor, now, we're not only 10 going to have to interpret an ambiguously worded contract, 11 we're now going to have ,to interpret what this colloquy' 12 .' 13 meant when that matter gets litigated. MR. DRAGNA: That's exactly the point, your Honor. 14 These order should be neutral. This order should be neutral 15 as to any position that's yet to be litigated. 16 MR. BOOGAARD: It can't remain neutral. 17 18 THE COURT: No, I don't exactly regard it as neutral. All I view here is that the order is not intended ~ 19 to alter or amend any existing contract and, furthermore, 20 that whatever rights the parties have in their contract 21 should be unaffected by the order. If the contract, for 22 example, provides right in it that any order of the court 23 shall be incorporated into the contract, then that's what 24 the contract says. 25 MR. DRAGNA: Exactly. That's my point, your :O'HIBIT A _. 1\ ;2CJ ~ ;Z if Echo Reporting, Inc. (619) 453-3325 29 1 Honor. If the contract says that any order of the District 2 Court amends the contract or that's what it's found to mean, 3 then notwithstanding the Court's expression of intent, 4 that's the impact of the order. 5 THE COURT: Then, it may very well happen'that as 6 a matter of the contract's interpretation, the order takes on a particular significance, but that wouldn't be because ~ 7 8 of my order. It would be because of the contract. All I'm 9 saying is I'm not going to draft an order which will attempt 10 to dictate the rights of anyo~e contractually -- that 11 doesn't have to the rights from the contract. 12 " All right, now, here's what I would propose. I 13 told you I would be pleased to hear all of the parties and 14 intervenors this afternoon if they want to address any other 15 points on this problem of coming up with an order. Now, the 16 order -- I said in my prior order, the one that was entered 17 on April 29th -- the Court did enumerate things that the 18 order should cover. For example, the order, which would 19 provide that the City shall present, on or before 20 January 19, 1995, a contingency plan for full compliance 21 with secondary treatment standards in the even they are 22 unable to obtain exemption from the Clean Water Act. Of 23 course, if they do obtain exemption, thèn they're going to 24 have to present a contingency plan for full compliance with 25 whatever it is that they have to comply with. EXHIBIT A c1() ~£ Echo ReportÛIg, Inc. (619) 453-3325 . ". 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 I I 22 23 I I 24 I I I 25 . - .' 30 MR. DRAGNA: That contingency plan would be presented in January. THE COURT: January 19, 1995. MR. DRAGNA: If I can speak to that issue, your Honor, there has been a dispute -- first, if I could take ·a step back. There are only about five issues or so that we disagree with. What I tried to do with the interim order was put all those in the order. We may be able to go through them in the hour and ten minutes -- -- I read the THE COURT: Well, the difficulty is Sierra Club submission that they don't feel that you recognized their positions. They feel that -- I infer that they feel that, once again, they were kind of left oût of the looP· MR. DRAGNA: Well, they were an active participant. They got copies, participated in conference calls, and we were not able to get their response in time to submit this order before the Court, which is why in my cover letter I said there are one or two parties that would address other issues not included. THE COURT: At any rate, the other points of the order that I was hoping that would be included would be a timeline __ deadlines for establishing discovery, the pretrial conference, the trial date and all the other proceedings, and in addition, to establish milestones for .' EXH\B\T A c:20~c2~ Echo Reporting. Inc. (619) 453-3325 . . 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 31 1 the City's ongoing construc~ion projects, an infrastructural maintenance project -- some of them are capital, some of them are maintenance -- including replacements and upgrades and updates, and including the computerized chemical feed process for the Point Loma treatment plant. I don't remember seeing anything mentioneð in that order about the computerized -- MR. DRAGNA: Every point the Court mentioned are contained in the order. I would just note for the Court that the presence of those items is not in dispute. It is the scope of them, and I'll, for example, use the chemical feed system as an example. The chemical feed system is in there. There is a construction deadline for the installation and operation of the chemical feed system. I'd direct the Court's attention to -- MR. BROMFIELD: It's 3(e), top of page 3, your 2 3 4 5 6 7 8 9 10 Honor. MR. DRAGNA: THE COURT: Right at the very top of page 3. Oh, okay, I beg your pardon. You're right. MR. DRAGNA: The d~spute that the parties have, and I believe it's just the Sierra THE COURT: 6/30/96? MR. DRAGNA: That's correct. The dispute that the City has with the Sierra Club, I believe, on that issue is ..- ...- EXHIBIT A dtJ -- d- ì Echo Reporting, Inc. (619) 453-3325 . . . 'w ~ 32 1 that the Sierra Club is of the opinion that it can be 2 constructed significantly sooner than that period, that 3 approximately two-year period, and what we tried to explain 4 to the Sierra Club in our conference call is that, rather 5 than it simply being the installation of a personal computer 6 and turn it on to some program, it essentially ties into , 7 what is a complete re-routing of the liquid feed system. 8 When I say liquid, I mean waste water feed system -- valves, 9 influence lines, computer sensors and the like. It is a 10 11 much more complex process, and we tried to walk through, with the Sierra Club, that process, and we have Mr. " Slessinger (phonetic) , who, to support the date that we 12 13 used, can explain why it's two years. I think that, in this 14 court 15 THE COURT: We would also include the feeder lines 16 for the chemicals. 17 MR. DRAGNA: Absolutely. It's basically a -_ THE COURT: You're going to reroute the influence 18 19 as well as the lines for the chemical 20 MR. DRAGNA: There's a new influent line being . 21 constructed that is unrelated to the chemical feed system, 22 and the chemical feed system, or the computerized feed 23 system, is going to be integrated within this new influent 24 channel, if I'm correct. 25 THE COURT: You mean, upstream from the Poi::=- Loma EXHIBIT A cltJ --- :26' Echo Reporting, Inc. (619) 453·3325 . " PROOP OP SERVICE BY HAIL (UNITED STATES OF AMERICA, et al. v. CITY OF SAN DIEGO: U.S. District Court No. 88-ll0l-B(IEG» I, ESTHER PEDRAZA, declare that: I am over the age of eighteen years and not a party to the case: I am employed in, or am a resident of, the County of San Diego, California, where the mailing occurs: and my business address is 1600 Pacific Highway, Room 355, San Diego, California. I further deçlare that I am readily familiar with the business practice "for collection and processing of correspondence for mailing with the United States Postal Service: and that the correspondence shall be deposited with the United States Postal Service this same day in the ordinary course of business. . I caused to be served the following document(s): AMICUS COUNTY OF SAN DIEGO'S BRIEF ON THE INTERIM ORDER by placing a true copy of each document in a separate envelope addressed to each addressee, respectively, as follows: (SEE ATTACHED) ~' I then sealed each envelope and, with the postage thereon fully prepaid, I placed each for deposit in the United States Postal Service, this same day, at my business address shown above, following ordinary business practices. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed on July 15, 1994 ESTHER PEDRAZA . ¿)ôrd-7 .. HUGH BARROLL, ESQ. ASSISTANT REGIONAL COUNSEL EPA - REGION IX - RC/4 75 HAWTHORNE STREET SAN FRANCISCO, CA 94105 WILLIAM M. BENJAMIN, ESQ. BENJAMIN & SUTTON 110 WEST C STREET, SUITE 2020 SAN DIEGO, CA 92101 JAMEE JORDAN PATTERSON DEPUTY ATTORNEY GENERAL OFFICE OF THE ATTORNEY GENERAL STATE OF CALIFORNIA 110 WEST "A" ST, STE 1100 SAN DIEGO, CA 92101 BRUCE BOOGAARD CITY ATTORNEY CITY OF CHULA VISTA 276 FOURTH AVENUE CHULA VISTA, CA 91910 ; :~" , TED BROMFIELD, ESQ. CHIEF DEPUTY CITY ATTORNEY 202 C STREET, 3RD FLOOR SAN DIEGO, CA 92101 JAMES J. DRAGNA, ESQ. MCCUTCHEN, DOYLE, BROWN & ENERSON 355 SOUTH GRAND AVENUE, SUITE 4400 LOS ANGELES, CA 90071 -- .- KAREN S. DWORKIN TRIAL COUNSEL U.S. DEPARTMENT OF JUSTICE ENVIRONMENT ENFORCEMENT SECTION BOX 7611, BEN FRANKLIN STATION WASHINGTON, D.C. 20044 J. BRUCE HENDERSON, ESQ. 4294 KENDALL STREET SAN DIEGO, CA 92109 KAREN O' HAIRE STAFF COUNSEL STATE OF CALIFORNIA WATER RESOURCES CONTROL BOARD 901 P STREET SACRAMENTO, CA 95814 STEPHEN V. PETIX ASSISTANT U.S. ATTORNEY OFFICE OF THE UNITED STATES ATTORNEY 940 FRONT STREET, ROOM 5152 SAN DIEGO, CA 92101-8800 ROBERT L. SIMMONS, ESQ. U.S.D. SCHOOL OF LAW P.O. BOX 19932 SAN DIEGO, CA 92119 THOMAS L. WOODRUFF, ESQ. ROURKE, WOODRUFF & SPRADLIN 701 SOUTH PARKER STREET, SUITE 7000 ORANGE, CA 92668 c2ô / J{) .....---- ;~ fI, '. :·,L·~~:- ;-~ ~_. ~DEDLAW O'~CES OF. :-.... !.'..-,::;;¡!-a A ;Ao.~~~T COA?~J?T~';':';' ,';;-ë ~.. .', ~ =¡J" .82 STEVENS AVENUE. SUITE 102 42 SOVoNA BEACH. CAL.FORNIA 02075 7, '. I'll I 8 AM 8 (81817$$.seo4" (818) 4$8-7878 1.:-....1 ....U... FAX ItneJ 7$$-$188 D. CW1GHT WORDEN TRACY R. RICHMOND w. SCOTT WlUJAMS ..lAMES H. EUJS III TERRY M. GIBBS CFlYSTAL. CRAWFORD MtCHAEL. $. HABERKORN July 14, 1994 The Honorable Rudi M. Brewster Federal District Court Judge U.S. Courthouse Building 940 Front Street San Diego, CA 92189 Re: U.S. v. city of San Dieao civil No. 88-1101-B Dear Judge Brewster: Bruce Boogaard, city Attorney for the City of Chula vista has asked that I write this letter in SUDDort of the proposed order language submitted by Deputy County Counsel Mark Mead. Mr. Boogaard is out of town on vacation, and has asked me to write this letter as his co-counsel for the City of Chula vista which has court-approved status as an amicus in the case. Specifically, Mr. Boogaard asked that I call the Court's attention to the following points which are a brief summary of the City of Chula Vista's position. We would be happy to provide the Court with more information on any of these points at the appropriate time. 1. Chula Vista does not object to the inclusion of the North city Plant in the list of facilities to be constructed by the city of San Diego, with this list to be "approved" by the Court, as long as the Court's approval thereof does not affect the cost distribution rights of Chula Vista under its existing Metro contract with the City of San Diego, meaning that this Court's order is not construed as an "applicable law, rule, or regulation" under the Metro Agreement such as to require Chula vista to participate in the costs of the plant. 2. Requiring the City of San Diego to build the North City Reclamation Plant by Court Order would be inappropriate since the Clean Water Act and the pending litigation do not confer jurisdiction on the Court to order reclamation, even though the Court and the parties recognize that reclamation is desireable. Since the city of San Diego has already let most of the contracts c2,)-j · A $ ~~ k ~ ~ ~.,!~? The Honorable Rudi M. Brewster July 14, 1994 Page 2 for the plant it is clear that the city will pay for and build the plant with or without the Court Order. And, the issue of who pays for the North city Plant should be left for dEtermination on another day. - 3. Chula vista supports water reclamation. It is one of the few cities to have required double piping in all new developments to accomodate reclamation, and Chula vista has an agressive water reclamation program in other respects which it would be happy to explain to the Court at the appropriate time. Chula vista believes that water reclamation can be achieved in the South Bay area where it can be used to the advantage of Chula vista residents at less cost than the North City Plant and, therefore, at this point must preserve its right not to be forced to participate in the cost of the North city Plant. Chula vista is actively studying the option of building its own reclamation plant as an alternative. 4. Chula vista withdrew from the SDAWWA after careful consideration because there was no benefit to remaining a member. The MOU proposed as a condition of continuing membership would have abrogated Chula vista's Metro contract and would have imposed what Chula vista believes are unfair cost sharing provisions. Notwithstanding, Chula vista is constantly re- evaluating and reviewing its position, and will undertake to rejoin the agency if it is determined to be economically feasible for Chula vista ratepayers. Because the deadline for withdrawal was June 30, 1994, Chula vista felt it necessary to withdraw so as not to lose its withdrawal right, keeping open the option of rejoining in the future. 5. Chula vista does not believe there needs to be a continuation of the prior Court Order because that prior order was designed to maintain the status quo under the Consent Decree pending court action thereon. Because the Consent Decree has been disbanded there is no longer a reason to maintain that status quo thereunder. 6. The proposed language suggested in Mr. Mead's brief, and the reasons therein stated in support, are endorsed by Chula vista and are consistent with this Court's oral statements at the last hearing as reflected in the transcript. ~ð~ c~\ ~ fer ;::~.;;; --...~ ---.>--...."''''-' ~., --...----.--.. OFFICE OF THE MA VOR TIM NADER CllY OF CHULA VISTA July 14, 1994 FROM: The Honorable City Council Tim Nader, Mayor .¡;:::- /l'J~:4~ CHILDREN'S SAFE HAVENS TO: SUBJECT: In the State of the City speech eariier this year, I proposed directing our staff to work with Councilman Fox's Partnership of Faith to develop "Children's Safe Havens" in Chula Vista. The proposal is prompted by concerns for the ever-decreasing safety of children in a society permeated by substance abuse, domestic violence, gangs, etc. As I pointed out in the State of the City speech, California consistently gets failing marks from virtually every children's advocacy organization that looks at our state's record on protecting the safety of our children. A Children's Safe Haven would be a physical facility - I envision churches volunteering facilities for this purpose - which would be open on some regular basis outside of school hours to any child who was afraid to be on the streets or at home for any reason. Trained counselors or other appropriate social workers or volunteers would be available on a telephone stand-by basis to work with children in need and to serve as liaison to appropriate City staff (police, Parks and Recreation, etc.). I will be asking Council tonight to give formal direction to the City Manager to have our staff seek and work with any church or other organization in our community that would be interested in developing such a program, and to help coordinate the availability of facilities with counseling and other human resources in our community (e.g., South Bay Community Services, YMCA, Boys & Girls Club, etc.). Those churches which have stepped forward to take part in the Partnership of Faith would appear to me to be logically the first place to go, but any facility willing and able to open its doors as a safe haven should be considered. It is my hope that this program will enhance the safety and well being of children in our community and may serve as a model elsewhere. Thank you for your positive consideration. TN:ps .J.Jc;;) 276 FOURTH AVENUE/CHULA VISTA. CALIFORNIA 91910/(619) 691-5044 ~--"'.-.-.--..---"---'-~'.----"'" ---,-~......_.._---~.__..,,,-----_.,----_._--- July 14, 1994 TO: The Honorable Mayor and City Council __nl~ Sid W. Morris, Assistant City Manager~ FROM: SUBJECT: City Council Meeting of July 19, 1994 This will transmit the agenda and related materials for the regular City Council meeting scheduled for Tuesday, July 19, 1994. There are no Written Communications on this agenda. SWM:mab Tuesday, July 19, 1994 9:06 p.m. Council Chambers Public Services Bnilding Joint Regular Meeting of the RedeveloDment Agencv/ Citv Council of the Citv of Chula Vista CALL TO ORDER I. ROLL CALL: PRESENT: Agency/Council Members Fox, Horton, Moore, Rindone, and Chairman/ Mayor Nader ALSO PRESENT: John D. Goss, Executive Director/City Manager; Bruce M. Boogaard, Agency General Counsel/City Attorney; Chris Salomone, Community Development Director; Dave Gustafson, AssisWlt Director of Community Development; and Berlin D. Bosworth, Secretary to the Redevelopment Agency 2. APPROVAL OF MINUTES: July 12, 1994 MSUC [HortonIMoore] to approve the minntes of July 12, 1994 as presented. Approved 5-0. CONSENT CALENDAR CONSENT CALENDAR OFFERED BY CHAIRMANIMA YOR NADER, reading of the text was waived, passed and approved unanimously. 3. WRITTEN COMMUNICATIONS: None submitted. 4. AGENCY RESOLUTION 1412 APPROVING A SEMI-EXCLUSIVE NEGOTIATING AGREEMENT WITH JOELEN ENTERPRISES FOR DEVELOPMENT OF AGENCY PROPERTY LOCATED AT 760 BROADWAY--As part of the Auto Park project the Agency acquired the Fuller Ford and Southbay Chevrolet dealership sites on Broadway. Joelen Enterprises propose to develop the portion of the Fuller Ford site on the west side of Broadway with approximately 38 business homes. Staff desires to enter into a Semi- Exclusive Negotiation Agreement with Joelen Enterprises for six mo.nths in order to work out details of this unique project which is a departure from typical strip commercial development along Broadway. Staff recommends approval of the resolution. (Community Development Director) Member/Council Member Rindone commented this was an exciting, new proposal. Both Josef and Lenore Citron of Joelen Enterprises, and staff were to be congratulated for exploring the businesshome concept. Member/Council Member Moore thought this an innovative mixed-use concept. If there were a need for a second six -month negotiating period extension that should be brought back to the Agency for authorization. The intent was to urge completion of these negotiations during the six-month timeframe for semi-exclusive negotiations. Chairman/Mayor Nader stated if Agency/Council Members agreed with that provision it would be incorporated without objection and the resolution amended. Member/Council Member Rindone wanted assurance the applicant concurred with the proposed amendment. Mr. Josef Citron, the applicant, agreed with Member/Council Member Moore's proposed amendment. Minutes Minutes July 19, 1994 Page 4 Council decided to give Mr. Reyes an additional three month extension to relocate, did staff anticipate a desire to have the lease executed as part of that. Mr. Gustafson replied staff would like to see the lease executed. Chairman/Mayor Nader suggested any conditions of that sort which staff believed were an important part of the extension should be placed before the Agency at that meeting. Mr. Reyes should have an opportunity to review those conditions well in advance of the meeting so that, should the Agency grant such an extension the conditions would be very clear so there would be no further uúsunderstandings. Member/Council Member Moore asked staff if Mr. Reyes leased the property as opposed to owning it. Mr. Gustafson said that was correct. Member/Council Member Moore asked if the Agency owned the property since July 1993. Mr. Gustafson replied that was correct also. Member/Council Member Moore asked if the Agency at that time gave Mr. Reyes one year to relocate. Mr. Gustafson stated yes. Member/Council Member Moore asked was the developer promised that property would be ready for grading in one year's time. Mr. Gustafson replied that was correct. Member/Council Member Moore asked if the Agency stated it would assist Mr. Reyes, but did not prouúse him everything would work well. Mr. Gustafson pointed out that under Redevelopment Law the Agency was required to assist Mr. Reyes, but not technically relocate him. Member/Council Member Moore recapped stating: (I) Mr. Reyes was not in the best position as he was not the owner of the property; (2) Mr. Reyes was leasing from the Agency; (3) Mr. Reyes had a year to move and had not done so; and (4) the developer was ready to grade the property. Whatever the Agency now decided to do was pretty much at the developer's mercy.. However, staff was to intercede with the developer to ascertain if there was any extra time which could be squeezed from the developer's time schedule for development. Mr. Gustafson pointed out the developer had complained they would like that structure removed as they have use for the property. The Agency did not technically have an agreement with the developer which stated the property would be available to them at any particular time. It was not part of the Disposition and Development Agreement. It was an understanding the developer had when Council extended Mr. Reyes' tenancy for 12 months. Member/Council Member Moore noted Mr. Reyes had to have made a serious effort to relocate. Chairman/Mayor Nader asked the minutes of the July 1993 meeting accompany the staff report. Member/Council Member Moore stated a tenant had certain rights and asked what those rights were. Mr. Gustafson said Mr. Reyes had the right to technical assistance to get his business relocated. The Agency needed to show him comparable properties. Minutes July 19, 1994 Page 5 Member/Council Member Moore asked were there any monetary value to relocating a tenant. Mr. Gustafson replied that was rather complicated. It would depend on the value the tenant had on the property--the fixtures and equipment, and whether the tenant had any leasehold bonus value. The Agency's experts have determined Mr. Reyes does not have any leasehold bonus value. The principal compensation Mr. Reyes could look to was Goodwill in case he should suffer a business loss when he was relocated. Member/Council Member Moore asked if both parties understood that. Mr. Gustafson said yes, but staff has had trouble calculating what that Goodwill might be as Mr. Reyes had not relocated. A Goodwill amount could only be posited. There was nothing finite as Mr. Reyes had not yet relocated and it could not be measured how well Mr. Reyes would do as opposed to how well he did at the previous property. Staff has had difficulty getting some business tax numbers from Mr. Reyes. Member/Council Member Moore asked if Mr. Reyes was aware of that. Mr. Gustafson replied he and Mr. Reyes had a discussion on that subject this evening. Mr. Reyes said staff had his tax reports for almost two months now. There was confusion on the numbers but they were being straightened out. He gave those papers to his attorney and his attorney then gave them to the Agency's attorney. Chairman/Mayor Nader pointed out that agendizing the item for the August 2 meeting gave Mr. Reyes mOre time to work something out with staff in terms of what the final extension should be. Mr. Reyes stated he was Dever opposed to being relocated. He had found properties he liked but could not relocate to them. Chairman/Mayor Nader asked why it was not possible to relocate to the properties he was interested in. Mr. Reyes replied the type of business he had required it not be near residential, churches, or schools. VOTE ON MOTION: Passed, 5... ACTION ITEMS 7. AGENCY RESOLUTION 1411 ADOPTING THE REDEVELOPMENT AGENCY BUDGET FOR FY 1994-95 AND APPROPRIATING FUNDS THEREFOR--The FY 1994-95 Redevelopment Agency Budget was reviewed as part of the City budget approval process. As the Redevelopment Agency is a separate legal entity, it is necessary to approve the budget separately as required by California Community Redevelopment Law. §1¡¡!'f recommends continuation of this item to the meetin2 of 8/2/94. (Administration/Community Development Director) Continued from the 7/12/94 meeting MSUC [NaderlMoore] to continue to the meeting of August 2, 1994. Approved 5-0. 8. AGENCY/COUNCIL REPORT STATUS OF MIDBAYFRONT NEGOTIATIONS--On 4/5/94 the status of negotiations with Midbayfront developer, William Barkett, was discussed and staff was directed to report back in 60 days as to whether substantial progress had been made towards completion of a Development Agreement (DA). Staff has made substantial progress including the development of a Pre-Construction Phasing Plan and Draft D A including resolutioD of all but several negotiating issues which are outlined in the report. Staff recommends acceptance of the report and direction by the Agency to continue negotiations with the developer for completion of a Development Agency. (Community Development Director) Continuedlrom the meeting 017/12/94 -". ---..--.-------.--.---......,-.-..- - -----_.._--.-,-_.--- Minutes July 19, 1994 Page 6 Community Developer Director Salomone informed Agency the negotiators had developed a draft of the Development Agreement as well as a Pre-construction Phasing Plan. Weekly meetings had been held with the developer, William Barkett, and steady progress had been made to this point. Staff believed it needed another 90 days, or perhaps more, to finalize the Development Agreement. Staff would like to diligeDtly pursue that. The staff report addressed several items--Nature Center funding, financial disclosure items typical to a Development Agreement, and evidence of qnalified resort operators--which remained unresolved between staff and the developer. Staff had offered recommendations on those items. The proposed Port District acqnisition of the Shangri-La property would take a burden off the project and add to the feasibility of the project. That was park land that would have had to have been developed by the developer. In addition, this developer has agreed to donate, at this time or a time in the not too distant future, additional acreage adjacent to those properties in order to develop a park or recreational facility utilizing Port District funds. The appraisal had been completed. A Phase I environmental analysis had been done and the Phase 2 environmental analysis was expected to be completed by September 1994. At that time staff would return to Council with a recommendation relative to Port's acquisition. Mr. Salomone further informed the Agency with respect to the three outstanding items: (I) Nature Center funding. The issue was initiation of the first payment. Per Council direction that was to occur at issuance of the first Grading Permit. As negotiations continued, the developer recommended that be moved to the issuance of the first Certificate of Occupancy. The rationale was the project would then begin to actually generate revenues. Staff was not opposed to moving the first payment to the issuance of the Certificate of Occupancy. (2) Financial Disclosure of Partners in the Development. This also was addressed by Council. It was typical in a Development Agreement that Financial Statements of partners be disclosed at some point--usnally when the Development Agreement was adopted. The issue was availability of financing which was what the Agency and City were concerned with. Staff felt if it could prove that financing was available for the project and that the project would be bniIt, then that condition would be met. (3) Qualified Hotelier Criteria. Staff wanted a qnalified hotelier approved by the Agency. The developer has requested greater flexibility on the issue. The developer contended there were very qnalified first-class hoteliers that were not listed as the Top 5 hoteliers in the nation. Staff wanted to work with the developer to establish objective criteria for each of the hotels within the project. Staff thought with further negotiations with the developer, Issues (2) and (3) would be resolved. Member/Council Member Fox wanted to know at what point the Financial Statements would be forthcoming. His concern was that the Financial Statements showed there was a qnalified developer. Mr. Salomone responded said the Pre-construction Phasing Plan which had been agreed to provided that that information would be given to the Agency prior to the Development Agreement being adopted. Member/Council Member Fox clarified the Financial Statements would come before the Agency prior to presentation to the Agency of the final Development Agreement. Mr. Salomone said that was so. It was a point of contention between the developer and staff. Having the Development Agreement in place would afford the developer the opportunity to market his project and then secure financing. The developer's contention was he would like to have the Development Agreement in place and then prove he has the financial ability. Whereas, staff was requesting his joint partners disclose their financial capability prior to the Development Agreement being adopted. Peter Watry, 81 Second Avenue, Chula Vista, CA 91910, speaking on behalf of Crossroads, said any bayfront project was important to the City. For the protection of the City, it certainly required and called for an outside financial expert to give the City advise about the feasibility of the project. The last report from Williams Kuebelbeck was issued about 18 months ago. Things have changed significantly since that time. It would be very useful and nice for the citizens of Chula Vista, as well as for the Agency's assurance, to have Williams Kuebelbeck update their Feasibility Study. The plan, compared to 18 months ago, was it more or less feasible. Was it going to require greater or lesser subsidy. We urge the Agency let Williams Kuebelbeck update their Feasibility Study. Chairman/Mayor Nader suggested staff discuss the specific items on which it was seeking guidance. Minutes July 19, 1994 Page 7 Mr. Salomone thought staff could be directed to continue negotiations. The one issue which staff would like direction was with respect to Nature Center funding. MOTION [Fox/Horton] authorize staff to negotiate such an agreement in accordance with Item 2. on page 8-6, of the staff report. Text of Item 2, page 8-6 of the staff report, is typed hereinafter in its entirety. 2. Favorably consider the developer's request to postpone the commencement of Nnture Center payments until the issuance of the first Certificate of Occupancy. The proposed $500,000 annual payments to the Nature Center is a significant expense for the developer and should most appropriately be timed to coincide with the iniJiation of an income stream from the project. This project requires an enonnous amount of predevelopment expenditures including $1.5 million in Cultural Arts Center Facilities payments, habiJat miJigalion and public improvements. Additional expenses levied before development occurs will make it more difficult to get this project started. Member/Council Member Moore said he did not want to give something without receiving something in return. He requested Agency authorize conceptual approval of that particular item. Chairman/Mayor Nader said one area where the City could get something for agreeing to this proviso would be in the area of the structuring of the tax rebates/subsidies. Member/Council Member Riodone thought the motion was out of order. It was his understanding staff was seeking for the Agency to look at the various different points and then authorize further direction to continue the negotiations and receive Agency input on at least those three decision points. The entire package needed to be looked at and reviewed. Cenain conditions should or should not be approved in the preliminary document prior to the Agency knowing the whole picture. Member/Council Member Fox understood Member Riodone's concern. There was going to be give and take in the negotiation process. The Agency was not approving the $500,000 being paid at the issuance of the Certificate of Occupancy. That would be negotiated. To get the whole picture, it sometimes had to be dealt with piecemeal. VOTE ON MOTION: Passed 4-0, with Rindone opposed. Member/Council Member Moore asked if the developer would donate land to make the anticipated Port District acquisition of the Shangri La property into a larger park area. Mr. Salomone said staff suggested the Port District take on the burden of developing the park, thereby relieving the City and the developer of that expense. The developer would donate land (approximately 5 to 6 acres), to make the size of the park the "right" size according to City standards. Member/Council Member Moore noted the developer would reduce his cost by not having to develop that portion as park land. Mr. Salomone replied at the present time the developer does not have to dedicate any land to park land until he has a final Development Agreement. MOTION [Fox/Nader] move for approval of Items 3. and 4., on page 8-6, of staff report. Text of Items 3. and 4., page 8-6 of the staff report, are typed hereinafter in their eDtirety. 3. Require the developers to provide financial statements of the development entity. This is a standard Development Agreement requirement and will provide the Agency with infonnalion concerning the developer's ability to undertake a project of this magniJude. Minutes July 19, 1994 Page 8 4. Allow the developer flexibility in identifying operators of hotels and sports facilities subject to concurrence of the Agency based upon demonstrated experience and financial capability of selected operators. The staff recommends that objective standards for the operators be included within the Development Agreement. Chairman/Mayor Nader asked if the motion was intended to include both sentences in Item 4. Member/Council Member Fox said both sentences. Chairman/Mayor Nader asked what the first sentence meant. Mr. Salomone replied, typically staff would state one of the Top 5 hoteliers had to build the hotels; otherwise, the Agency would not approve the Development Agreement. Over the years that had been a proven criteria for first- class hotels. The developer made a compelling point--there were a great number of first-dass resorts which were not built by the Top 5. The developer's resort was tailor-made for a unique type operator. Chairman/Mayor Nader asked if the flexibility staff was seeking was to have an operator that was not on the Top 5 list but nonetheless was comparable an\! met criteria which essential described the operations of those Top 5. Mr. Salomone replied that was correct, though it was a departure from the standard Development Agreement. Chairman/Mayor Nader asked who would determine, and at what point, whether the proposed operator met those criteria. Mr. Salomone said the Agency would have unfettered discretion. Staff would work with the developer in developiug that objective criteria. Chairman/Mayor Nader asked once the standards are developed and in the Development Agreement, does the developer need to come forward with the specific operator before or after rights vest under the Development Agreement. Mr. Salomone said before. Chairman/Mayor Nader asked if the Agency then made the decision whether the operator met the criteria. Mr. Salomone said that was right. VOTE ON MOTION: Passed 5-0. Member/Council Member Fox asked staff to restate the estimate on how long it would take to reach a final Development Agreement. Mr. Salomone replied staff thought 90 days was reasonable for a final Development Agreement. Staff had the draft Development Agreement, but because of a number of blanks it was not included with the staff report. Member/Council Member Fox asked if the Agency was to agree with staff recommendation, Item I, page 8-6 of the staff report, for the three months to complete the Development Agreement, would staff return in the interim with an additional status report on the negotiations prior to the end of the 90 day period. His concern was there be no contested negotiating points remaining at the end of the 90 days. Mr. Salomone stated staff would be happy to report back to the Agency in 60-days. Minutes July 19, 1994 Page 9 Member/Council Member Fox preferred not to have just one report due in three months. MOTION [FoxlNader] accept staff recommendation (Item 1., page 8-6 of staff report) provided the Agency receives a status report within 60 days as well. Text of Item I, page 8-6 of the staff report, is typed hereinafter in its entirety. Striff to conJinue to refine and complete the Pre-Construction Phasing Plan and Develapment Agreement and report back to the Council(" within three months. [.. added text.] Member/Council Member Rindone asked why a status report of a status report was being requested. Member/Council Member Fox said staff had indicated the goal was to reach conclusion and actually have the Development Agreement within three months. He wanted to know progress was being made so that in three month's time staff was DOt coming back to the Agency with more contested points. If the goal was to have the Development Agreement within three months, then should any points hinder that goal, then let the Agency know at the end of the 60-day period. Member/Council Member Rindone understood a status report was being requested within 60 days. Member/Council Member Fox added, and hopefully a Development Agreement at the end of three months. VOTE ON MOTION: Passed 5-0. Member/Council Member Rindone, referring to Item E. Developer Construction Obligations, page 8-3, staff report. It stated The Development Agreement will require the Developer to comply with the Pre-construction Phasing Plan or the Agreement will be subject to termination. It then stated, The Agreement does not require the Developer to construct the public or private improvements on the Bayfront. Why would the Agency do that? Mr. Salomone noted the structure of a Development Agreement was to provide incentives and entitlements and to take those entitlements away should the developer DOt perform. A certain amount of flexibility had to be inherent in the Agreement. The City could require this developer to perform but, in many ways, that would inhibit the developer's ability to get financial partners or parcel off sections of the project to other entities. The Development Agreement was not personal to this developer; rather, it was vested with entitlements and financial incentives that should the developer not perform the entitlements and financial incentives go away. Member/Council Member Rindone expressed concern the City would represent it had gone through the entire process and then did not have a provision that the public entities would even have to be built. Mr. Salomone pointed out the City would do everything it could to enable a project be built. The City did not require a developer to build the project if he did not have the ability to get financing or the ability to build the project. Member/Council Member Rindone asked if Phase I was permitted to go forward, could DOt the City not place the public amenities within Phase I. Mr. Salomone said yes the City could and that was part of the Phasing Plan adopted in the Specific Plan of the Local Coastal Plan. Member/Council Member Rindone asked what was in Phase I of the public amenities. Mr. Salomone replied all parks, streets, bridges, almost every public improvement within the project. These were specifically required of this developer but the City could not enforce that reqnirement should the developer not have the ability to do the project. Minutes July 19, 1994 Page 10 Member/Council Member Rindone understood that but asked if the project were to be bnilt it was essential that the public amenities, including the infrastructure, was built in Phase I. He asked if he had the assurance that was included. Mr. Salomone said he did as it was included in the Phasing Plan and was included in the Specific Plan of the Local Coastal Plan. Those public amenities will be built in Phase I. Member/Council Member Rindone said he did not have a problem with what staff was saying. Was it correct to say that if the developer did not get financing to be able to construct all of what was targeted for the first phase, then construction would not begin. Mr. Salomone replied that was correct. Member/Council Member Rindone stated he did DOt have a problem with that. Where he had the problem was if construction began, it has been singled out that the public amenities not be included. He asked for clarification. Mr. Salomone stated the issue was not whether it was public or private amenities. The City was not reqniring development, as it was a requirement that the City could not enforce. The City could not demand--if the developer did not have financing nor the ability--to require the developer to build. The City could do everything but that. That was how every Development Agreement was structured. It does not mean the City would relieve the developer of building any of the public improvements or that the City would reduce any of the private improvements. Member/Council Member Rindone said he wanted to assure the public amenities were built in the first phase should the first phase be funded. Mr. Salomone said they would. The Pennits are conditioned upon those public improvements. Chairman/Mayor Nader inquired about the agreement for Cultural Arts Facility funding. Mr. Salomone noted Council directed staff on that issue. The developer would pay $1.5 million up-front and would guarantee up to $7.5 million on a match basis. There would be a guarantee of $7.5 million by this developer. Chairman/Mayor Nader asked if that was reflected in the Development Agreement. Mr. Salomone stated that was an item which had been resolved. ChainnanJMayor Nader asked what was contained in Phase I versns future phases. The City does not want to have a situation where the phasing was such that housing could be built and that would be the end of the project. Does statI feel comfortable that was covered and what was the mechanism by which it was covered. Mr. Salomone responded both the Specific Plan and the Local Coastal Plan as well as the Phasing Plan and the Development Agreement reqnired that the core Phase I include all public amenities and 50 percent of the central business at the same time 25 percent of the residential was being bnilt. No more than 25 percent of the residential could be built until all amenities were built. ChainnanJMayor Nader stated that was certaiuly progress. Member/Council Member Rindone asked if the Development Agreement was exclusive. Should there be a change of developers, was it ouly with this developer these agreements had been reached. Mr. Salomone stated that was correct. Minutes July 19, 1994 Page 11 ChairrnanJMayor Nader seeked clarification as he had a different understanding. Was staff saying if the Developntent Agreement was ultimately approved that it would be nontransferable. If Mr. Barkett had another developer he wanted to bring in or sell some of his interest to, he could not do that. Mr. Salomone pointed out the City had developed some criteria for transferability which would be contained in the Development Agreement. It was a point, that once again, the City retained unfettered discretion to approve the transfer of that property when the Development Agreement was adopted. ITEMS PULLED FROM THE CONSENT CALENDAR Items pulled: none. The minutes will reflect the published agenda order. OTHER BUSINESS 9. DIRECTOR/CITY MANAGER'S REPORT(S) None. 10. CHAIRMANIMAYOR'S REPORTlS) None. II. MEMBER/COUNCIL MEMBERS' COMMENTS None. ADJOURNMENT ADJOURNMENT AT 10:08 P.M. to the Regnlar Redevelopment Agency Meeting on August 2, 1994 at 4:00p.m., immediately following the City Council meeting, in the City Council Chambers. Respectfully submitted, ~ A. <\.~~U~·- Berlin D. Bosworth Secretary to the Redevelopment Agency (C:I WPS lIAGENCYIMINUTESI07-19-94.MIN]