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HomeMy WebLinkAboutAgenda Packet 1997/12/09 \ , '" deciare '1n"o, !'Or,1!t" 01 perjury that I am emplr)' a . ,,~ ..~ '};~1'13 in the 0" ',' ~ .:-; ):j t:.::. ,C.'C,d3t ~I-;~. ::. .ii/-rfJl- ~.JX1 itJ1 N;~/~" PUbliCC;:~~~~;~:~~~~; Tuesday, December 9, 1997 6:00 p.m. Rel!ular Meetim.! of the City of Chula Vista City Council CALL TO ORDER 1. ROLL CALL: Council members Moot Mayor Horton _' Padilla Rindone _, Salas _, and 2. PLEDGE OF ALLEGIANCE TO THE FLAG. MOMENT OF SILENCE 3. APPROVAL OF MINUTES: November 13, 1997 (Special MeetinglWorksession), November 18, 1997 (Regular City Council Meeting) and November 18, 1997 (Adjourned Meeting of the City Council). 4. SPECIAL ORDERS OF THE DAY: a. Oath of Office: Rickey R. Welch, II - Youth Commission. CONSENT CALENDAR (hems 5 through 15) The staff recommendations regarding the following itellls listed ullder 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 lobby and submit it to the City Clerk prior to the lIIeeting. Items pulled from the Consent Calendar will be diSCUSSell after Board and Commission Recommendations anll Action Items. Items pulled by the public will be the first items of busilless. 5. WRITTEN COMMUNICATIONS: a. Letter from the City Attorney stating that Co until met in Closed Session on 11125197 and 12/2197. The City Attorney hereby reports that to the best of his knowledge from observance of actions taken in Closed Session in which the City Attorney participated, that there were no reportable actions which are required under the Brown Art to be reported. It is recommended that the letter he received and tiled. 6. ORDINANCE 2716 ESTABLISHING THE POGGI CANYON SEWER BASIN DEVELOPMENT IMPACT FEE TO PAY FOR SEWER IMPROVEMENTS WITHIN THE POGGI CANYON SEWER BASIN AS A CONDITION OF ISSUANCE OF BUILDING PERMITS (second readine and adontion) - The Poggi Canyon Basin Gravity Sewer Basin Plan was prepared by Wilson Engineering to recommend sewer improvements necessary to convey sewage flows from the Poggi Canyon Sewer Basin to existing or proposed downstream sewerage facilities. Based on the analysis, a Development Impact Fee of $400 per Equivalent Dwelling Unit should be established to pay for these facilities. Staff re,commends Council place the ordinance on second reading and adoption. (Director of Public Works) Agenda -2- December 9, 1997 IB'?.<. Cj 7. RESOLUTION~ APPROVING MEMORANDUM OF UNDERSTANDING CONCERNING WAGES AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT WITH THE CHULA VISTA MIDDLE MANAGERS ASSOCIATION FOR FISCAL YEAR 1997/98, IMPLEMENTING THE SALARY AND BENEFIT INCREASES FOR THE CHULA VISTA EMPLOYEES ASSOCIATION, WESTERN COUNCIL OF ENGINEERS, AND APPROVING THE SALARY AND BENEFIT INCREASES FOR THE UNREPRESENTED GROUPS OF EXECUTIVE MANAGERS, UNREPRESENTED EMPLOYEES AND UNCLASSIFIED PART TIME EMPLOYEES AND APPROPRIATING FUNDS FROM THE UNAPPROPRIATED BALANCE OF THE GENERAL FUND FOR THESE INCREASES AND THE PREVIOUSL Y APPROVED INCREASES TO SALARY AND BENEFITS FOR THE CHULA VISTA POLICE OFFICERS ASSOCIATION - Negotiating teams representing the City and Chula Vista Middle Managers Association (CVMMA) have reached agreement on a Memorandum of Understanding (MOU) covering fiscal year 1997/98. The proposed MOU was ratified by the CYMMA memhership. The major changes to the terms and conditions are outlined in the report. In addition, the City has also completed negotiations with the Chula Vista Employees Association, Western Council of Engineers, went through a med ami confer prm;ess with the Chula Vista Police Officers Association. and the City Council provided general directions for the unrepresented groups of Ex~cutivc Manag~rs, Unr~pr~s~nt~d Employ~es and Unclassified Part Time Employees on salary and bendit increases. The cost of all recommended increases are proposed to be appropriated from the unappropriated fund balance of the General Fund. Staff recommends approval of the resolution. (Budget Manager) 4/Sth's vote required. jg-8"11 8. RESOLUTION tllle6 ACCEPTING AND AMENDING THE SALARY AND BENEFITS INCREASES FOR THE EXECUTIVE DIRECTOR AND DEPUTY DIRECTOR OF THE CALIFORNIA BORDER ALLIANCE GROUP (CBAG), AND APPROPRIATION OF FUNDS FROM UNANTICIPATED GRANT REVENUE - On 9/5/95, Council approved tbe City to act as the "tiscal agent" for the CBAG and act as conduit to ohtain civilian support personnel and to acquire related supplies for three employees. On 7/16/96, Council approved adding two additional CBAG support personnel. This action provides for both Executive Director and Deputy Director level positions tied to the Federal pay schedule to receive a step increase within the prescribed Federal General Schedule pay to be effective January, 1998. Staff recommends approval of the resolution. (Chief of Police) 4/Sth's vote required. /flgtf).. 9. RESOLUTION ~7 ACCEPTING $14,583 FROM SOUTH BAY COMMUNITY SERVICES (SBCS) AND APPROPRIATING SUCH FUNDS FOR OVERTIME NECESSARY TO IMPLEMENT THE DOMESTIC VIOLENCE COMPONENT OF THE COMMUNITY ASSESSMENT GRANT - SBCS, in partnership with the Police Department, was awarded a grant to form a Family Violence Response Team. This grant provides a creative program for gaining early access to families with children in which dom~stic violenct.': is present. The grant reimburses the Police Department for overtime expenses associated with domestic violence cases. Staff recommends approval of the resolution. (Chief of Police) 4/Sth's vote required. Agenda -3- Dljcember 9, 1997 10. RESOLUTION 18828 AUTHORIZING THE TRANSFER (REPROGRAMMING) OF 1996 AB 3229 SUPPLEMENT AL LOCAL LAW ENFORCEMENT FUNDS IN THE AMOUNT OF $33,569 FOR PURCHASE OF A CAD DISPATCH COMPONENT TO SERVICE ANIMAL CONTROL ($18,569l AND DEVELOPMENT OF MAP BOOKS ($15,000) FOR PUBLIC SAFETY - During fiscal year 1996/97. Council accepted and appropriated 1996 AB 3229 Supplemental Local Law Enforcement funds in the amount of $356,408 for payment of personnel, overtime, and purchase of equipment. Staff is recommending that the funds set aside t'or purchase of the firewall and auto ticket writers, which have not been purchased, be reprogrammed for purposes of purchasing a computer aided rJispatching component and map hooks for public safety. Staff recommends approval of the resolution. (Chief of Police) 11. THIS ITEM HAS BEEN DELETED FROM THE AGENDA 12. RESOLUTION 18830 APPROVING A VISION STATEMENT AND A SPENDING ALLOCATION PLAN FOR THE PROPOSED QUARTER OF A CENT SALES TAX FOR LIBRARIES - The County Board of Supervisors has re- established the Regional Library Authority for the purpose of placing a quarter of a cent sales tax on the b.tllot. At their first meeting, the Authority asked that each library jurisdiction bring a "vision statement" and a spending plan to the Authority's 12/11/97 meeting. Staff recommends approval of the resolution. (Library Director) 13. RESOLUTION 18831 ACCEPTING CALIFORNIA STATE LIBRARY MATCHING FUNDS AWARDED TO THE CHllLA VISTA LITERACY TEAM, APPROPRIATING FUNDS, AND AMENDING FISCAL YEAR 1997/98 BUDGET - The Chula Vista Literacy Team has applied for and been awarded $32,359 in California State Library makhing funds. Grant awards are based on a match of $1 for every $4.68 raised and spent locally. The Lihrary received a five-year California State Lihrary grant in 1987 to establish the Chula Vista Literacy Team. A series of one-year extensions of the California Library Services Act have continued funding for this program. Funds must he used to support the library's adult literacy program. Staff recommends approval of the resolution. (Library Director) 4/5th's vote re4uired. 14. RESOLUTION 18832 ACCEPTING CALIFORNIA DEPARTMENT OF EDUCATION ADULT BASIC EDUCATION SECTION 321 GRANT FUNDS AWARDED TO THE CHULA VISTA LITERACY TEAM, APPROPRIATING FUNDS, AND AMENDING FISCAL YEAR 1997/98 BUDGET TO INCLUDE A .14 FULL TIME EQUIVALENT POSITION - The Chula Vista Literacy Team has applied for ami been awarded $5,970 in California Department of Education, Adult Basic Education, Section 321 grant funds. The Literacy Team has applied for and received these funds since fiscal year 1991/92. The base grant of $3,500 must be used for supplemental staff development, assessment, and/or networking. Remaining funds are calculated on the number of learner attendance hours and may he used for staff development and/or other enhancements to program quality. Staff reconunends approval of the resolution. (Lihrary Director) 4/5Ih', vole re4uired. Agenda -4- Decemher 9, 1997 15. RESOLUTION 18833 APPROVING THE PARK MASTER PLAN FOR ROLLING HILLS RANCH NEIGHBORHOOD PARK - The neighborbood park at Rolling Hills Ranch is a 7.0 acre sik located at Mt. Miguel Road and MacKenzie Creek Road. Rolling Hills Ranch (formally Salt Creek Ranch) is in the eastern territories of the City and is a planned residential community with a focus on open space, trails, and a park system. Stall recommends approval of the resolution. (Director of Parks, Recreation and Open Space) * * * EN/) OF CONSENT CAU~N{)AIl * * * 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 Oil this agenda for public discussion. (Slale law, however, generally prohibits the City Council from taking action on any issues not included on the posted agenda.) If you wish to address the Council on such a subject, please complete the "Request to Speak Under Oral Communications Forni" available in the lobby and submit it to the City Clerk prior to the meeting. Those who wish to speak, please give your name and address for record purposes alld follow lip action. PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES The following items have been advertised and/or posted as public hearings as required by law. If you wish to speak to any item, please fill out the "Request to Speak Fonn /I available in the lobby and submit il to the City Clerk prior to the meeting. 16. PUBLIC HEARING CONSIDERING RETAINING THE CALENDAR YEAR 1998 BUSINESS LICENSE TAX RATES AT THE CURRENT CALENDAR YEAR 1997 LEVELS - The Business LiCense Tax ordinance is stmctured so that the business license tax rates increase annually unless Council takes action to abate them each year. Sinl.:C 1991. tax rates have remaineu the same due to annual abatements. Since the tax rates have not heen increased as scheduled since': 1991, the taxes would more than uouhle for the vast l11<i:iority of husinesses on 1/1198 if Council did not pass a resolution to abate them to a lower level than that allowed hy ordinance. Since revenue estimates in the current budget wen~ based on current tax rates. abating the Calendar Year 1998 tax rates to retain them at the current level would notrequire an adjustment to this year's budgeted revenue. Staff recommends approval of the resolution. (Director of Finance) RESOLUTION 18834 ABATING THE BUSINESS LICENSE TAX RATES FOR CALENDAR YEAR 1998, HOLDING CALENDAR YEAR 1998 TAX RATES AT THE CURRENT CALENDAR YEAR 1997 LEVELS 17. PUBLIC HEARING TO NOTICE USE OF FISCAL YEAR 1997/98 COPS FUNDING PER CITIZENS' OPTION FOR PUBLIC SAFETY FOR LOCAL LAW ENFORCEMENT SERVICES - The 1997/98 State budget was adopted appropriating $359,028.58 to the City's Police Department as a result of Assembly Bill 3229, Brulte. This Bill allocates State money to police departments for purposes stipulated by the Citizens Option for Public Safety (COPS) Program. Staff recommends approval of the resolutions. (Chief of Police) A. RESOLUTION 18835 ACCEPTING $359,028.58 FOR LOCAL LAW ENFORCEMENT FROM THE ST ATE BUDGET TO PA Y FOR POLICE PERSONNEL ($108,000) AND RELATED EQUIPMENT ($251,028.58) B. RESOLUTION 18836 AUTHORIZING THE CHIEF OF POLICE TO UTILIZE (REPROGRAM) SA VINGS RESULTING FROM THE COMPETITIVE PROCUREMENT PROCESS FOR ADDITIONAL UNSPECIFIED SAFETY EQUIPMENT AND SUPPLIES Agenda -5- Decemher 9, 1997 18. PUBLIC HEARING TO NOTICE ACCEPTANCE AND APPROPRIATING OF LOCAL LAW ENFORCEMENT BLOCK GRANT FUNDS - The Police Department has recently received notice of a 1997 Local Law Enforcement Block Grant (LLEBG) Award in the amount of $269,518 from the Bureau of Justice Assistance. These funds were allocated to the Police Department based on a three-year average Part 1 V ioknt Crimes. Part 1 V ioleol Cril11t:s afe murder and non-negligent manslaughters, forcihle rape, rohhery, and aggravated assault as reported by the FBI. Acceptance and appropriation of these funds requires a public hearing per stipulations of the LLEBG. Staff recommends approval of the resolutions. (Chief of Police) A. RESOLUTION 18837 ACCEPTING $269,518 FROM THE 1997 LOCAL LAW ENFORCEMENT BLOCK GRANT AND APPROPRIATING SUCH FUNDS FOR THE FOLLOWING PURPOSES: $10,000 DRUG COURT, $149,518 IN OVERTIME, AND $110,000 FOR EQUIPMENT PROCUREMENT - 4/5tl1's vote required. B. RESOLUTION 18838 AUTHORIZING THE CHIEF OF POLICE TO UTlLlZE (REPROGRAM) SAVINGS RESULTING FROM THE COMPETITIVE PROCUREMENT PROCESS FOR ADDITIONAL UNSPECIFIED SAFETY EQUIPMENT AND SUPPLIES 19. PUBLIC HEARING REGARDING EXISTING AND PROPOSED RATES AND CHARGES FOR COX COMMUNICATIONS' BASIC SERVICE TIER AND ASSOCIATED EQUIPMENT AND CABLE PROGRAMMING SERVICES TlER, AS SUBMITTED BY COX COMMUNICATIONS TO THE CITV VIA FEDERAL COMMUNICATIONS COMMISSION (FCC) FORMS 1235, 1240 AND 1205 - Part I, 2, and 3 of the resolution represent Cox Communications' annual cost-based requests for increases in their maximum permitted rates. Such increases are allowed by the FCC as long as they conform to a formula of intlationary and programming expenses. Chula Vista's consultant revieweJ these calculations and found them to he appropriately justitied. Part 4 of the resolution is hased on an FCC decision rejecting Chula Vista's 1996 complaint regarding upgrade-related increases in expanded hasic services and Cox's request to allow increases in the maximum permitted hasic rates accordingly, as both rates were computed on the same upgrade-based formula. Staff recommends approval of the resolution. (Principal Management Assistant Young) RESOLUTION 18839 (1) APPROVING VARIOUS PROPOSED COST-BASED DECREASES FOR INSTALLATIONS AND ASSOCIATED EQUIPMENT; AND (2) APPROVING PROPOSED COST-BASED INCREASES IN THE MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER ($2.86); AND (3) APPROVING PROPOSED COST-BASED INCREASES IN THE MAXIMUM PERMITTED RATES FOR THE CABLE PROGRAMMING SERVICES TIER ($0.46); AND (4) APPROVING PROPOSED UPGRADE-RELATED INCREASES IN THE MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER ($1.57) Agenda 20. PUBLIC HEARING 21. PUBLIC HEARING -6- December 9. \997 CONSIllERATION OF A PROPOSED AGREEMENT TO GRANT A MODIFIED FRANCHISE AGREEMENT TO COX COMMUNICATIONS (COXCOM) INC. - One of the economic development sub-goals outlined by Council in the past year's priority setting workshops was the review of all City franchise agreements. This report presents a proposed amendment to the City's franchise with Cox Communications. Among the terms of this proposal. the City would be able to implement an additional phase of the SmartCommunity program as developed in a series of 1996 public workshops. Other recommendations include an increase in the franchise fee to the industry standard level of 5 % of gross revenues, extending the agreement for an additional ten years and making rdated changes in the Municipal Code. At the reoue.'Jt of the aDDlicant. staff recommends the DuhHe hearinu he continued to the meetinu of 12/16/97. (Principal Management Assistant Young) ON ASSESSMENT DISTRICT NUMBER 93-01 FOR ALLEY IMPROVEMENTS EAST OF SECOND A VENUE AND SOUTH OF "J" STREET - Council accepteu a petition signeu hy a m,,:iority of the property owners aujacent to the alley east of Second Avenue hetween "J" and Kearney Streets to form a special assessment district for the construction of improvements to the alley. Council subsequently awarded the contract to Fox Construction Company which completed the alley improvement project on 10/30/95. Staff recommends the Duhlic hearinu he continued to the meetinu of 1/6/98. (Director of Public Works) Continued from the meeting of 11/25/97. BOARD AND COMMISSION RECOMMENDATIONS This is the time the City Council will consider items which have been forwarded to Ihemfor consideration by one of the City's Boards, Commissions, and/or Committees. None suhmitteu. ACTION ITEMS The items listed in this seclion of the agenda are expecled 10 elicit mbslanlial discussions and deliberations by the Council, staff, or members of the general public. 11/e items will be considered individually by the Council and slaffrecommendations may in certain cases be presented in Ihe alternalive. 11/Ose who wish to speak, please fill out a "Request to Speak" fonn available in Ihe lobby and submil it 10 the City Clerk prior 10 the meeting. 22. RESOLUTION 18840 AMENDING THE FISCAL YEAR 1997/98 BUDGET TO INCLUDE 1.00 FULL TIME EQUIVALENT POLICE AGENT POSITION AND VEHICLE; ACCEPTING AND APPROPRIATING UNANTICIPATED GRANT REVENUES IN THE AMOUNT OF $155,804 FROM HIGH INTENSITY DRUG TRAFFICKING AREA (HIllTA) GRANT FUNDS - The Police Department has two Agents working with the United States Custom Service (USCS), one Agent at Operation Alliance, the other Agent at the Air/Marine Narcotics Interdiction Group. Both positions are funded through HIDT A grants. The Police Department is now seeking to expand and enhance its investigative efforts hy participating in another HIDT A position lead by the FBI investigating "Narcotic Traffickers." Staff recommends approval of the resolution. (Chid of Police) 4/5th', vote required. Agenda -7- December 9. 1997 ITEMS PULLED FROM THE CONSENT CALENDAR This is the time the City Council will discuss items which have been removed from the Consent Calendar. Agenda items pulled at the request of the public will be considered prior to those pulled by CounciLmembers. OTHER BUSINESS 23. CITY MANAGER'S REPORT(S) a. Scheduling of meetings. 24. MAYOR'S REPORTlS) a. Consideration of vote regarding the change in language in the Draft Comprehensive Management Plan to specifically support the creation of the South San Diego Bay National Wildlife Refuge. 25. COUNCIL COMMENTS ADJOllRNMENT The meeting will adjourn to (a closed session and thence to) the Assessment Process on Saturday, December 13, 1997 at 8:00 a.m. to meet in the Human Resources Office, Administration Building, 276 Fourth Avenue, Chula Vista, CA., thence to the regular City Coul1cilmeeting on Decemher 16, 1997 at 6:00 p.m. in the City Council Chambers. A special meeting of the Redevelopment Ageni;y will he held immediately following the City Council meeting. "\ declare under pcna:ty of perjury that I arll em:J!o:'etj bj t;.;c -,~~[l,::,: ,;-f GhU:3 V~sta in the OHice of U;e '~,lt./ : . '""; ~~ ~mJ t:'lat I p03tod this A&cnc.;:~/No'd-:~ :::;~ the LJulictin Board at the PUbli~C S;.pticeG BuYjin,~ and at C~it Hail on , Tuesday, December 9,1997 DATED, A'1 '7 SIGNED S!.:- ,,' CouncIl Chambers 6:00 p.m. ( " Public Se.rvices Building (immediately following the City Council Meeting) Citv of Chuta Vista Citv Council CLOSED SESSION AGENDA Effective April 1, 1994, there have been new amendments to the Brown Act. Unless the City Attorney, the City Manager or the City Council states otherwise at this time, the Council will discuss and deliberate on the following itellls of business which are pennitted by law to be the subject of a closed session discussion, and which the Council is advised should be discussed in closed session to best protect the interests of the City. The Council is required by law to return to open session, issue any reports of final action taken in closed session, and the votes taken. However, due to the typical length of time taken up by closed sessions, the videotaping will be temlinated at this point in order to save costs so that the Council's return/rom closed session, reports of linal action taken, and adjournment will not be videotaped. Nevertheless, the report of final actioll taken will be recorded in the lIlinutes which will be available in the City Clerk's Office. I. CONFERENCE WITH LEGAL COUNSEL REGARDING: 1. Existing litigation pursuant to Government Code Section 54956.9 . Jones Intercahle v. City of Chula Vista. . Wolfe v. City of Cbula Vista. . Griffin v. City of Chula Vista. . Corley v. Tew, City of Chu\a Vista. 2. Initiation of Litigation pursuant to Subdivision (c) of Government Code Section 54956.9 (I case) 3. Significant exposure to Litigation: Gon~rnment Code Section 54956.9 EEOC Charge No. 345980141 CONFERENCE WITH REAL PROPERTY NEGOTIATOR - Pursuant to Government Code Section 54956.8 . Property: City right-of-way. Negotiating parties: City of Chula Vista (Gerald Young) and Cox Cable. Under negotiations: Price and terms of interest in City right-of-way granted by Cahle System Franchise. Closed Session Agenda -2- December 9, 1997 PUBLIC EMPLOYEE APPOINTMENT - Pursuant to Government Code Section 54957 . City Manager CONFERENCE WITH LABOR NEGOTIATOR - Pursuant to Government Code Section 54957,6 . Agency negotiator: John Goss or designee I,)r CYEA, WCE, POA, IAFF, Executive Management, Mid-Management, and Unrepresented. Employee organization: Chula Vista Employees Association (CYEA) ami Western Council of Engineers (WCE), Police Officers Association (POA) and International Associalion 01 Fire Fighters (IAFF). Unrepresented employee: Executive Management, Mid-Management, and Unrepresented. 2. REPORT OF ACTIONS TAKEN IN CLOSED SESSION ~V?- ~ ~-..:~~ ~"'".......~ "-~~-- CllY Of CHULA VISTA OFFICE OF THE CITY A TIORNEY Date: November 26, 1997 From: The Honorable Mayor and CitYz:counc~~~ John M. Kaheny, city Attorney ~ Report Regarding Actions Ta en in Closed Session for the Meeting of 11/25/97 and 12/2/97 To: Re: The city council met in Closed Session on 11/25/97 to discuss Jones Intercab1e v. City of Chu1a Vista, Griffin v. City of Chula Vista, Conference with Real Property Negotiator: Terms for modification of Ground Lease, Tri-Party Agreement, Sublease and/or Settlement Agreement-Los Alisos Company and Universal Concerts, Inc.; price and terms for interest in city right-of-way granted by Cable System Franchise and labor negotiations. The Redevelopment Agency met in Closed Session on 11/25/97 to discuss Conference with Real Property Negotiator: Potential sale of Redevelopment Property-John Moores and Larry Lucchino. The city Council met in Closed Session on 12/2/97 to discuss Public Employee Appointment - City Manager. The city Attorney hereby reports to the best of his knowledge from observance of actions taken in the Closed Session in which the City Attorney participated, that there were no reportable actions which are required under the Brown Act to be reported. JMK: 19k C:\lt\clossess.no s~// 276 FOURTH AVENUE. CHULA VISTA. CALIFORNIA 91910 . (619) 691-5037 . FAX (619) 585-5612 tl f'oo-Ca'6i.oTls'Aec)ded~ I r\\~ cf:}~/ AN ORDINANCE OF THE CITY OF CHULA VISTA, ~ ~. CALIFORNIA ESTABLISHING THE POGGI CANYON ~ SEWER BASIN DEVELOPMENT IMPACT FEE T~~ FOR SEWER IMPROVEMENTS WITHIN THE ~~ CANYON SEWER BASIN AS A CONDI,\,~ OF ISSUANCE OF BUILDING PERMITS #~ . WHEREAS, the city's General Plan Land Use and Public Facilities Elements require that adequate public facilities be available to accommodate increased population created by new development, and ORDINANCE NO. :17 JJ; WHEREAS, the city Council has determined that new development within certain areas within the City of Chula vista as identified in this ordinance, will create adverse impacts on certain existing public facilities which must be mitigated by the financing and construction of those facilities identified in this ordinance, and WHEREAS, developers of land within the city are required to mitigate the burden created by their development by the construction or improvement of those facilities needed to provide service to their respective developments or by the payment of a fee to finance their por- tion of the total cost of such facilities; and, WHEREAS, development within the City contributes to the cumulative burden on various sewer facilities in direct relationship to the amount of population generated by the development or the gross acreage of the commercial or industrial land in the development; and, WHEREAS, the Poggi Canyon Sewer Basin ("Basin") is that area of land within the city of Chula vista and the County of San Diego from which wastewater will flow by gravity from Poggi Canyon into the otay River Valley. This area is shown on the map attached hereto as Exhibit "A", Poggi Canyon Sewer Study Map. This map is also included as an attachment to the Poggi Canyon Basin Gravity Sewer Analysis; and, WHEREAS, Wilson Engineering has prepared the Poggi Canyon Basin Gravity Sewer Plan ("Plan") dated July 31, 1997; and, WHEREAS, said Plan includes an estimate of ultimate sewer flows anticipated from the Poggi Canyon Basin, recommends sewer facilities needed to transport these flows, and establishes a fee payable by persons obtaining building permits for developments within these basins benefiting from the construction of these facilities; and, WHEREAS, on October 29, 1997 a public meeting was held with the owners and developers of properties located within the Basin to discuss the Plan and city staff recommendations for establishing the Poggi Canyon Sewer Basin Development Impact Fee ("Impact Fee"); and, WHEREAS, the Environmental Review Coordinator conducted an Initial INFORMATION PACKET SCANNED AT FIRST READING OF THIS ORDINA~CE ON: /'IN :<5 ;qq7 - 6/( study, IS-98-06, of potential environmental impact associated with the proposed "Project" and has concluded that there would be no significant environmental impacts, and recommends adoption of the Negative Declaration issued on IS-98-06; and, WHEREAS, on November 25, 1997 a Public Hearing was held before the city Council to provide an opportunity for interested persons to be heard on the approval of the Plan and establishment of the Impact Fee; and, WHEREAS, the City Council determined, based upon the evidence presented at the Public Hearing, including, but not limited to, the Plan and other information received by the City Council in the course of its business, that imposition of the Impact Fee on all developments within the Poggi Canyon Basin in the City of Chula Vista for which building permits have not yet been issued is necessary in order to protect the public safety and welfare and to ensure effective implementation of the City's General Plan; and, WHEREAS, the City Council has determined that the amount of the Impact Fee levied by this ordinance does not exceed the estimated cost of providing the public facilities identified by the Plan. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS: SECTION 1. Environmental Review That the adoption of the Impact Fee ordinance will have no significant environmental impacts, and the City Council of the city of Chula Vista hereby adopts the Negative Declaration issued on IS-.98-06. SECTION 2. Approval of Plan. The City Council has independently reviewed the and has adopted the same, by Resolution No. form on file with the city Clerk and on file in the City Engineer. proposed Plan , in the the Office of SECTION 3. "Facilities". The facilities to be financed by the Impact Fee are fully described in Table 4-5 of the Plan at page 42, Attached as Exhibit 1, and incorporated herein by this reference, ("Facilities"), all of which Facilities may be modified by the City Council from time to time by resolution. The locations at which the Facilities will be constructed are shown on Exhibit "A", Poggi Canyon Basin Sewer Study Map, which is included in the Plan. The City Council may modify or amend the 2 ~ tf,-.:z list of projects herein considered to be part of the Facilities by written resolution in order to maintain compliance with the city's capital Improvement Program or to reflect changes in land development and estimated and actual wastewater flow. SECTION 4. Territory to Which Fee Is Applicable. The area of the City of Chula vista to which the Impact Fee herein established shall be applicable is set forth on Exhibit "A", and is generally described herein as the "Territory." SECTION 5. Purpose. The purpose of this in order to provide Facilities within accordance with the ordinance is to establish the Impact the necessary financing to construct the areas shown in Exhibit "A", City's General Plan. Fee the in SECTION 6. Establishment of Fee. The Impact Fee, to be expressed on a per Equivalent Dwelling unit ("EDU") basis, and payable prior to the issuance of building permits for development projects within the Territory, is hereby established to pay for the Facilities. SECTION 7. Due on Issuance of Building Permit. The Impact Fee shall be paid in cash upon the issuance of a building permit. Early payment is not permitted. No building permit shall be issued for development projects within the Territory unless the developer has paid the Impact Fee imposed by this Ordinance. SECTION 8. Determination of Equivalent Dwelling Units. Each single family detached dwelling or single family attached dwelling shall be considered one EDU for purposes of this Impact Fee. Each unit within a mUlti-family dwelling shall be considered 0.75 EDU. Every other commercial, industrial, non- profit, public or quasi-public, or other usage shall be charged at a rate calculated in accordance with the method for estimating EDUs set forth in Exhibit "B", Sewer Benefit Area Fees Based on Land Use Categories. 3 ~t~3 SECTION 9. Time to Determine Amount Due; Advance Payment Prohibited. The Impact Fee for each development shall be calculated at the time of building permit issuance and shall be the amount as indicated at that time and not when the tentative map or final map was granted or applied for, or when the building permit plan check was conducted, or when application was made for the building permit. SECTION 10. Purpose and Use of Fee . The purpose of the Impact Fee is to pay for the planning, design, construction and/or financing (including the cost of interest and other financing costs as appropriate) of the Facilities, or reimbursement to the City or, at the discretion of the City if approved in advance in writing, to other third parties for advancing costs actually incurred for planning, designing, constructing, or financing the Facilities. Any use of the Impact Fee shall receive the advance consent of the City Council and be used in a manner consistent with the purpose of the Impact Fee. SECTION 11. Amount of Fee; Amendment to the Master Fee Schedule The Impact Fee shall be calculated at the rate of $400 per EDU. Chapter XVI, Other Fees, of the Master Fee Schedule is hereby amended to add Section which shall read as follows: " Poggi Canyon Sewer Basin Development Impact Fee. This section is intended to memorialize the key provisions of Ordinance No. ,but said Ordinance governs over the provisions of the Master Fee Schedule. For example, in the event of a conflict in interpretation between the Master Fee Schedule and the Ordinance, or in the event that there are additional rules applicable to the imposition of the Impact Fee, the language of the Ordinance governs. a. Territory to which Fee Applicable. The area of the City of Chula Vista to which the Impact Fee herein established shall be applicable is set forth in Exhibit "A" of the Poggi Canyon Basin Gravity Sewer Plan dated July 31, 1997, and is generally described as the Poggi Canyon Basin. b. Rate per EDU. 4 </ftPi ~. - i The Impact Fee shall be calculated at the rate of $400 per EDU, which rate shall be adjusted from time to time by the City Council. c. EDU Calculation. Each single family detached dwelling or single family attached dwelling shall be considered one EDU for purposes of this Impact Fee. Each unit within a multi- family dwelling shall be considered 0.75 EDU. Every other commercial, industrial, non-profit, public or quasi-public, or other usage shall be charged at a rate calculated in accordance with the method for estimating EDUs set forth in Exhibit "B" to Ordinance No. , "Sewer Benefit Area Fees Based on Land Use Categories". d. When Payable. The Impact Fee shall be paid in cash not later than immediately prior to the issuance of a building permit." The City Council shall review the amount of the Impact Fee annually or from time to time. The City Council may, at such reviews, adjust the amount of this Impact Fee as necessary to assure construction and operation of the Facilities. The reasons for which adjustments may be made include, but are not limited to, the following: changes in the costs of the Facilities as may be reflected by such index as the Council deems appropriate, such as the Engineering-News Record Construction Cost Index (ENR-CCI); changes in the type, size, location or cost of the Facilities to be financed by the Impact Fee; changes in land use in the City's General Plan; other sound engineering, financing and planning information. Adjustments to the above Impact Fee may be made by resolution amending the Master Fee Schedule. SECTION 12. Authority for Accounting and Expenditures. The proceeds collected from the imposition of the Impact Fee shall be deposited into a public facility financing fund ("Poggi Canyon Sewer Basin Benefit Area Fee Fund", or alternatively herein "Fund") which is hereby created and shall be expended only for the purposes set forth in this ordinance. The Director of Finance is authorized to establish various accounts within the Fund for the Facilities identified in this ordinance and to periodically make expenditures from the Fund for the purposes set forth herein in accordance with the facilities phasing plan or capital improvement plan adopted by the City Council. 5 ---- ~ c::-~ SECTION 13. Findings. The City Council hereby finds the following: A. The establishment of the protect the public safety and effective implementation of the Impact Fee is necessary to welfare and to ensure the City's General Plan. B. The Impact Fee is necessary to ensure that funds will be available for the construction of the Facilities concurrent with the need for these Facilities and to ensure certainty in the capital facilities budgeting for growth impacted public facilities. C. The amount of the fee levied by this ordinance does exceed the estimated cost of providing the Facilities which the fee is collected. not for D. New development projects within the Territory generate a significant amount of wastewater that current sewer facilities can not service, therefore construction of the Facilities will be needed to service new development projects. will SECTION 14. Impact Fee Additional to other Fees and Charges. The Impact Fee established by this section is in addition to the requirements imposed by other City laws, policies or regulations relating to the construction or the financing of the construction of public improvements within subdivisions or developments. SECTION 15. Mandatory Construction of a Portion of the Facilities; Duty to Tender Reimbursement Offer. Whenever a developer is required as a condition of approval of a development permit to construct or cause the construction of the Facilities or a portion thereof, the City may require the developer to install the Facilities according to design specifications approved by the City and in the size or capacity necessary to accommodate estimated ultimate flow as indicated in the Plan and subsequent amendments. If such a requirement is imposed, the City shall offer, at the City's option, to reimburse the developer from the Fund either in cash or over time as Fees are collected, or give a credit against the Impact Fee levied by this Ordinance or some combination thereof, in the amount of the costs incurred by the developer that exceeds their contribution to such Facilities as required by this Ordinance, for the design and construction of the Facility not to exceed the estimated cost of that particular Facility as included in the calculation and 6 ~ 6-? updating of the Impact Fee. The City may update the Impact Fee calculation as City deems appropriate prior to making such offer. This duty to offer to give credit or reimbursement shall be independent of the developer's obligation to pay the Impact Fee. SECTION 16. Voluntary Construction of a Portion of the Facilities; Duty of City to Tender Reimbursement Offer. If a developer is willing and agrees in writing to design and construct a portion of the Facilities in conjunction with the prosecution of a development project within the Territory, the ci ty may, as part of a written agreement, reimburse the developer from the Fund either in cash or over time as Fees are collected, or give a credit against the Impact Fee levied by this Ordinance or some combination thereof, in the amount of the costs incurred by the developer that exceeds their contribution to such Facilities as required by this Ordinance, for the design and construction of the Facility not to exceed the estimated cost of that particular Facility as included in the calculation and updating of the Impact Fee and in an amount agreed to in advance of their expenditure in writing by the City. The City may update the Impact Fee calculation as City deems appropriate prior to making such offer. This duty to extend credits or offer reimbursement shall be independent of the developer's obligation to pay the Impact Fee. SECTION 17. Procedure for Entitlement to Reimbursement Offer. The City's duty to extend a reimbursement offer to a developer pursuant to section 16 or 15 above shall be conditioned on the developer complying with the terms and conditions of this section: a. Written authorization shall be requested by the developer from the City and issued by the city council by written resolution before developer may incur any costs eligible for reimbursement relating to the construction of the Facili ties, excluding any work attributable to a specific subdivision project. b. The request for authorization shall contain the following information, and such other information as may from time to time be requested by the City: (1) Detailed descriptions of the conducted by the developer preliminary cost estimate. work to with be the c. If the Council grants authorization, it shall be by 7 ~ C:;-j written agreement with the Developer, and on the fol- lowing conditions among such other conditions as the Council may from time to time impose: (1) Developer shall specifications and approval; prepare all plans and submit same to the city for (2) Developer shall secure and dedicate any right-of-way required for the improvement work; (3) Developer shall secure all required permits and environmental clearances necessary for construction of the improvements; (4) Developer shall provide performance form and amount, and with satisfactory to the City; bonds in a a surety (5) Developer shall pay all City fees and costs. (6) The city shall be held harmless indemnified, and upon demand by the defended by the developer for any of the and liabilities associated with improvements. and City, costs the (7) The developer shall advance all necessary funds for the improvements, including design and construction. The City will not be responsible for any of the costs of constructing the facilities. (8) The developer shall secure at least three (3) qualified bids for work to be done. The construction contract shall be granted to the lowest qualified bidder. Any claims for additional payment for extra work or charges during construction shall be justified and shall be documented to the satisfaction of the Director of Public Works. (9) The developer shall provide a detailed cost estimate which itemizes those costs of the construction attributable to the improvements. The estimate is preliminary and subject to final determination by the Director of Public Works upon completion of the Public Facility Project. (10) The agreement may provide that upon 8 .~6-Y SECTION 18. determination of satisfactory incremental completion of the public facility project, as approved and certified by the Director of Public Works, the City may pay the developer progress payments in an amount not to exceed 75 percent of the estimated cost of the construction completed to the time of the progress payment but shall provide in such case for the retention of 25% of such costs until issuance by the City of a Notice of Completion. (11) The agreement may provide that any funds owed to the developer as reimbursements may be applied to the developer's obligations to pay the Impact Fee for building permits to be applied for in the future. (12) When all work has been completed to the satisfaction of the City, the developer shall submit verification of payments made for the construction of the project to the City. The Director of Public Works shall make the final determination on expenditures which are eligible for reimbursement. (13) After final determination of expenditures eligible for reimbursement has been made by the Public Works Director, the parties may agree to offset the developer's duty to pay Impact Fees required by this ordinance against the City's duty to reimburse the developer. (14) If, after offset if any, funds are due the developer under this section, the City may at its option, reimburse the developer from the Fund either in cash or over time as Fees are collected, or give a credit against the Impact Fee levied by this Ordinance or some combination thereof, in the amount of the costs incurred by the developer that exceeds their required contribution to such Facilities as required by this Ordinance, for the design and construction of the Facility not to exceed the estimated cost of that particular Facility as included in the calculation and updating of the Impact Fee and in an amount agreed to in advance of their expenditure in writing by the City. Procedure for Fee Modification. 9 flA--;- ~. -- / Any developer who, because of the nature or type of uses proposed for a development project, contends that application of the Impact Fee imposed by this ordinance is unconstitutional or unrelated to mitigation of the burdens of the development, may apply to the City Council for a waiver or modification of the Impact Fee or the manner in which it is calculated. The application shall be made in writing and filed with the City Clerk not later than ten (10) days after notice is given of the public hearing on the development permit application for the project, or if no development permit is required, at the time of the filing of the building permit application. The application shall state in detail the factual basis for the claim of waiver or modification, and shall provide an engineering and accounting report showing the overall impact on the DIF and the ability of the city to complete construction of the Facilities by making the modification requested by the applicant. The city Council shall make reasonable efforts to consider the application within sixty (60) days after its filing. The decision of the City council shall be final. The procedure provided by this section is additional to any other procedure authorized by law for protection or challenging the Impact Fee imposed by this ordinance. SECTION 19. Fee Applicable to Public Agencies. Development projects by public agencies, including schools, shall not be exempt from the provisions of the Impact Fee. SECTION 20. Assessment District. If any assessment or special taxing district is established to design, construct and pay for any or all of the Facilities ("Work Alternatively Financed"), the owner or developer of a project may apply to the City Council for reimbursement from the Fund or a credit in an amount equal to that portion of the cost included in the calculation of the Impact Fee attributable to the Work Alternatively Financed. In this regard, the amount of the reimbursement shall be based on the costs included in the Basin Plan, as amended from time to time, and therefore, will not include any portion of the financing costs associated with the formation of the assessment or other special taxing district. SECTION 21. Expiration of this Ordinance. This ordinance shall be of no further force and effect when the city Council determines that the amount of Impact Fees 10 !Jfi-1O c:: -/0 which have been collected reaches an amount equal to the cost of the Facilities. SECTION 22. Time Limit for Judicial Action. Any judicial action or proceeding to attack, review, set aside, void or annul this ordinance shall be brought within the time period as established by Government Code Section 66022 after the effective date of this ordinance. SECTION 23. Other Not Previously Defined Terms. For the purposes of this ordinance, the following words or phrases shall be construed as defined in this Section, unless from the context it appears that a different meaning is intended. (a) "Building Permit" means a permit required by and issued pursuant to the Uniform Building Code as adopted by reference by this City. (b) "Developer" means development. the owner or developer of a (c) "Development Permit" means any discretionary permit, entitlement or approval for a development project issued under any zoning or subdivision ordinance of the City. (d) "Development Project" or "Development" means any activity described in section 66000 of the state Government Code. (e) "Single Family Attached Dwelling" means a single family dwelling attached to another single family dwelling, with each dwelling on its own lot. SECTION 24. Effective Date. This ordinance shall become effective sixty (60) days after its second reading and adoption. Presented by Approved as to form by John P. Lippitt Director of Public Works ~~ John Kaheny City Attorney H:\home\attorney\poggidif.ord 11 jM-416/// COUNCIL AGENDA STATEMENT ITEM TITLE: / Y %,) '7 "L-3":it_1 ~ Resolution Approving Memorandum of Understanding concerning wages and other terms and conditions of employment with the Chula Vista Middle Managers Association, for FY 1997-98, implementing the salary and benefit increases for the Chula Vista Employees Association, Western Council of Engineers, and approving salary and benefit increases for the unrepresented groups of Executive Managers, Unrepresented Employees and Unclassified Part-Time Employees and appropriating funds from the unappropriated balance of the General Fund for these increases and the previously approved increases to salary and benefits for the Chula Vista Police Officers Association SUBMITTED BY: Budget Manage~ REVIEWED BY: City Managef (4/5ths Vote: Yes...xNo_) Negotiating teams representing the City and Chula Vista Middle Managers Association, (CVMMA) have reached agreement on a Memorandum of Understanding (MOU) covering FY 1997-98. The proposed MOU was ratified by the CVMMA membership. The major changes to the terms and conditions are outlined in this report. In addition, the City has also completed negotiations with the Chula Vista Employees Association (CVEA), Western Council of Engineers (WCE), went through a meet and confer process with the Chula Vista Police Officers Association (CVPOA), and the City Council provided general direction for the unrepresented groups of Executive Managers, Unrepresented Employees and Unclassified Part Time Employees on salary and benefit increases. The cost of all recommended increases is proposed to be appropriated from the unappropriated fund balance of the General Fund. Item Meeting Date 12/09/97 7 RECOMMENDATION: That Council adopt the resolution approving the FY 1997-98 Memorandum of Understanding with CVMMA, implementing salary and benefit increases for CVEA and WCE, and approve salary and benefits increases for the unrepresented groups of Executive Managers, Unrepresented Employees and Unclassified Part Time Employees and appropriating funds from the unappropriated fund balance of the General Fund for these increases and for the previously approved salary and benefit increases for CVPOA. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: ?-- / Page 2, Item Meeting Date 12/09/97 Chula Vista Middle Mana~ers Association The Chula Vista Middle Managers Association was officially formed and recognized by the City in March of this year. As this is a new association, a new Memorandum of Understanding was negotiated. The MOU tentatively agreed upon reflects only minor changes from the policies and other terms of working conditions under which this group has worked. The one-year MOU with CVMMA includes only a few changes from past practice. These changes are: 1. 1.40 City Ri~hts $ 100 The City will provide each CVMMA member a copy of the FY 1997-98 MOU. 2. 2.10 Salaries $177.542 The City will provide a salary increase of 3.36% retroactively to July 4, 1997. This amount represents the gross amount that will need to be appropriated, however, this will be offset by an increase in staffing reimbursements from other funds in an amount of $22,370.' 3. ~ Safety Eauipment $ 700 The City will provide $100 towards the purchase of safety shoes for the classifications of Open Space Coordinator, Building Services Superintendent, Supervising Construction Specialist, Building Projects Supervisor, Public Works Maintenance Superintendent, Sr. Parks Supervisor. These shoes will be replaced on an as needed basis. 4. 2.45 Mileage Reimbursement $ 515 The City will reimburse employees who are required to use their personal vehicles for authorized City business at the rate of 29c for the first 200 miles/month, 27c for the next 300 miles and 25C over 500 miles per month. 5. 3.10 Employee Benefits/Professional Enrichment $ 3.000 The fund which has been established outside the flex plan for conference and training shall be increased to $20,000, half of which will be available during the first half of the fiscal year and the remaining half available the second half of the fiscal year. Salary/Benefits Increases $181,857 lThis is the first general salary increase for middle managers in five years. 7-,2 Page 3, Item Meeting Date 12/09/97 Chula Vista Police Officers Association At the City Council meeting of October 7, 1997, the City's final offer to CVPOA was unilaterally implemented. This offer included the following adjustments to salary and benefits: 1. Retirement Offset $81.353 Increase in City pick-up of Employee's portion of PERS contribution from 2% to 3% 2. PERS Level IV Survivor's Benefit $ 14.364 3. POST Incentive Language Change $ 3.100 Total Salary/Benefits $98,817 Chula Vista Emoloyees Association The Chula Vista Employees Association (CVEA) is in the fourth year of a four year contract. A condition of this final year was a salary survey and implementation of a salary increase based on the results of the survey. This survey was completed in October and the increase based on the survey results is 3.36%. These funds now need to be appropriated. The cost of the increase is estimated at $492,273. This is the gross amount that will need to be appropriated; however, this is offset by an increase in staffing reimbursements from other funds in an amount of $62,026. Salary $492,273 Western Council of Engineers The Western Council of Engineers (WCE) MOU was also subject to a salary survey this year. Their survey was to be based on similar groups of Engineers, or if there were no similar groups, then they would use the same comparisons as CVEA. After review of the survey information it was determined that the CVEA information was more appropriate and that the 3.36% increase be granted to WCE. The cost of the increase for this group is $49,822. This amount is also offset by increased staffing reimbursement of $6,278. Salary $ 49,822 Unrepresented (includin!! Secretary to Mayor/Council) The application of the 3.36% salary increase to this group will cost $26,658. All of these positions represent city overhead and therefore there is no staffing reimbursement. An additional issue which is recommended to be included in the package for the Unrepresented groups is the increase of the allowable flex plan contribution to the deferred compensation plan from 25% to 30%. This percentage increase was implemented for the Middle Management group for FY 95-96, but has not yet been offered to this group. The cost of this change is based on the amount of flex plan balance returned to the general funds at the end of the fiscal year. This amount is presumed to be reduced by a maximum of 5% or 7/3 Page 4, Item Meeting Date 12/09/97 approximately $1,211, if every employee in this group were able to avail themselves of this benefit. Salary Deferred Comp Percentage Increase Total $ 26,658 $ 1.211 $ 27,869 Executive Managers The application of the 3.36% salary increase for the Executive Management group (including the City Manager, City Attorney and City Clerk), if applied across the board would be $99,029. This amount would be offset by an increase in the staffing reimbursement of $12,477. An additional issue which is recommended to be included in the package for Executives Managers is the increase of the allowable flex plan contribution to the deferred compensation plan from 25% to 30%. This percentage increase was implemented for the Middle Management group for FY 95-96, but has not yet been offered to the Executives. The cost of this changes is based on the amount of flex plan balance returned to the general funds at the end of the fiscal year. This amount is presumed to be reduced by a maximum of 5% or approximately $4,865, if every Executive were able to avail themselves of this benefit. It is also recommended that the City Manager be given a "retention" pool of $5,000 which can be used to help retain key department heads. It is suggested that these funds would assist in retaining senior executives who have performed exceedingly well, consistently worked beyond the level required in time commitment and who have achieved excellence in their departments, bettering service levels for the benefit of Chula Vista citizens. The City has lost two key Executives recently as a result of static salaries for an extended period of time and came close to losing two others. This proposal would assist the City Manager in retaining key personnel, especially when the main issue for leaving the organization is based on level of compensation. In addition, these funds may prove helpful in recruitment and attracting high quality individuals when executive level positions become vacant. Locally, it may not be recognized how fortunate Chula Vista is to have the caliber of senior executives that we have compared to other jurisdictions around the County and the State. This is in part reflected in the superior service Chula Vista receives in many service level areas. This is such an important recommendation that deletion of the 25-30% allowable flex plan contribution to the deferred compensation plan ($4,865 -- described above) would be preferable to deleting this "retention pool" recommendation. Salary Deferred Comp Percentage Increase Senior executive retention fund Total $ 99,029 $ 4,865 $ 5.000 $108,894 ?~i Page 5, Item Meeting Date 12/09/97 Unclassified Part-Time Employees This group includes all hourly part-time employees. The largest number of hourly employees work in the Library and the Parks, Recreation and Open Space Departments providing services directly to the public. The addition of this salary increase for this group will cost $62,815, which will be offset by revenue from increased staffing reimbursements of $7,914. Salary $ 62,815 FISCAL IMPACT: The cost of this Memorandum of Understanding2 with CVMMA and the other salary adjustments are within the guidelines established by City Council, including expected resources needed to fund these adjustments. In order to amend the FY 1997-98 budget for the full cost of the salary and benefit increases, an additional appropriation of $1,022,247 is needed. It is recommended that this appropriation be funded from the unappropriated balance of the General Fund reserve. 3 This amount is estimated to be offset by revenue for staffing cost reimbursements from other funds up to approximately $111 ,065. ~..II'lt\tJt:i~ll~ llllllllljllliU CVMMA $181,757 POA $98,817 CVEA $492,273 WCE $49,822 UNREP $27,869 EXEC $108,894 UCPT $62,815 TOTAL $1,022,247 2The proposed CVMMA MOU is on file and available for public review in the city Clerk's Office. 3This action was contemplated when Council considered the 1997-98 budget. This action will not prevent the City from continuing to make progress towards meeting its General Fund reserve guidelines of 8%. 7<~ Revised 12/8/97 Agenda Item No. 7 RESOLUTION NO. 18829 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING MEMORANDUM OF UNDERSTANDING CONCERNING WAGES AND OTHER TERMS AND CONDITIONS OF EMPLOYMENT WITH THE CHULA VISTA MIDDLE MANAGERS ASSOCIATION FOR FY 1997- 98, IMPLEMENTING THE SALARY AND BENEFIT INCREASES FOR THE CHULA VISTA EMPLOYEES ASSOCIATION, WESTERN COUNCIL OF ENGINEERS, AND APPROVING SALARY AND BENEFIT INCREASES FOR THE UNREPRESENTED GROUPS OF EXECUTIVE MANAGERS, UNREPRESENTED EMPLOYEES AND UNCLASSIFIED PART- TIME EMPLOYEES AND APPROPRIATING FUNDS FROM THE UNAPPROPRIATED BALANCE OF THE GENERAL FUND FOR THESE INCREASES AND THE PREVIOUSLY APPROVED INCREASES TO SALARY AND BENEFITS FOR THE CHULA VISTA POLICE OFFICERS ASSOCIATION WHEREAS, negotiating teams representing the City and Chula vista Middle Managers Association (CVMMA) have reached agreement on a Memorandum of Understanding (MOU) covering FY 1997- 98 and have ratified a proposed MOU; and WHEREAS, in addition, the City has also completed negotiations with Chula Vista Police Officers Association (CVPOA), Chula vista Employees Association (CVEA), Western Council of Engineers (WCE) , and the unrepresented groups of Executive Managers (including the City Manager, City Attorney and City Clerk), Unrepresented Employees and Unclassified Part Time Employees on salary and benefit increases; and WHEREAS, the cost of all recommended increases is proposed to be appropriated from the unappropriated fund balance of the General Fund. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve the Memorandum of Understanding concerning wages and other terms and conditions of employment with the Chula Vista Middle Managers Association for FY 1997-98. implement Employees amount of BE IT FURTHER RESOLVED the city Council does hereby the salary and benefit increases for the Chula Vista Association and Western Council of Engineers in the 3.36% retroactively to July 4, 1997. approve BE IT FURTHER RESOLVED the City Council does hereby the salary and benefit increases for the Executive 1 i-Co Managers, including the City Manager, City Attorney, and City Clerk retroactively to July 4, 1997 in the amount of 3.36%. BE IT FURTHER Executive Management, as hereby amended to reflect RESOLVED that the Salary Bands for set forth in Resolution No. 18572, are the above-described increases in salary. BE IT FURTHER RESOLVED the city Council does hereby approve a $5,000 Senior Executive Retention Fund to be used to retain key department heads and shall be administered by the City Manager. BE IT FURTHER RESOLVED the City Council does hereby approve a salary and benefit increase for the Unrepresented Group (including the Secretary to the Mayor and Council) and Unclassified Part-Time Employees in the amount of 3.36% retroactively to July 4, 1997. BE IT FURTHER RESOLVED that the allowable flex plan contribution to the deferred compensation be increased from 25% to 30% for the Executive Managers, including the city Manager, City Attorney and City Clerk and the Unrepresented Group. BE IT FURTHER RESOLVED that the amount of $1,022,247 is hereby appropriated from the unappropriated balance of the General Fund reserve. Presented by Approved as to form by Dawn Herring, Budget Manager C:\rs\budget.app 2 1-1 COUNCIL AGENDA STATEMENT Item Meeting Date 12/09/97 g' ITEM TITLE: RESOLUTION /'ll'irJ.lIAccepting and Amending the Salary and Benefits Increases for the Executive Director and Deputy Director of the California Border Alliance Group (CBAG) and Appropriation of Funds from Unanticipated Grant Revenue. BACKGROUND: Chief of POIiC~ 9.\lG. /CI ~ C'" M'"''':J Ct b tJEi \ (4/5ths Vote: Yes..x. No_l SUBMITTED BY: REVIEWED BY: On September 5, 1995, City Council approved the City of Chula Vista to act as the "fiscal agent" for the California Border Alliance Group and act as conduit to obtain civilian support personnel and to acquire related supplies for three employees. On July 16, 1996, City Council approved adding two additional CBAG support personnel. This action provides for both executive level positions tied to the federal pay schedule to receive a step increase within the prescribed federal General Schedule pay by level and step (level 15, step 4 for Executive Director position and level 14, step 5 for the Deputy Director position) to be effective January, 1998, a net increase of 3.13% (Attachment A). The proposed resolution would enable: 1. Chula Vista to pay federal government pay increases effective January 1, 1998 to the two executive positions for the CBAG, Executive Director and Deputy Director (Attachment B). These amendments would represent pass through costs from the City of Chula Vista to these employees. The funding is from the San Diego Police Department Master Fiscal Agent MOU. RECOMMENDATION: That Council approve the proposed resolution. The staff recommendation will: 1) provide the City to be reimbursed for all expenses associated with the salary and benefits increases for CBAG executive positions including a nominal processing cost reimbursement; 21 appropriate funds from unanticipated grant revenue and amend the Police Department's Grant Fund budget to support these actions (Attachment C). BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: The United States Attorney's Office - Southern District of California (USA), a division of the United States Department of Justice (DOJI, had received federal funding to implement the California Border Alliance Group (CBAG). The mission of CBAG is to develop multi-jurisdictional, cooperative strategies to: al gather intelligence on drug traffickers; bl investigate drug trafficking activities; c) arrest persons involved with illegal drug trafficking; d) to successfully prosecute those arrested. CBAG is funded through a "High Intensity Drug Trafficking Area" (HIDT A) funding provision contained in the Federal Appropriations Act for each federal year from 1988 through 1998; the Anti-Drug Abuse Act of 1988; and, the National Drug Control Strategy of 1990. San Diego and ff-J Page 2, Item _ Meeting Date 12/09/97 Imperial Counties have been designated a HIDT A due to the volume of illegal narcotics entering the United States through the international border. The City of San Diego, through the Police Department, is the Master Fiscal Agent for all participating state and local law enforcement agencies. The San Diego Police Department receives an annual allocation of HIDTA funding each federal fiscal year. Participating agencies make individual claims to obtain reimbursement for expenses related to their CBAG assigned personnel. The resolution proposed by staff will amend the FY 97-98 budget to reflect reimbursement of all expenses associated with the federal salary increases. The total reimbursement to the City will include a processing fee payable to the City that will be calculated at 2% of total funds passed through the City to CBAG. Approval of this resolution will reflect the actual federal allocation for CBAG staff in the Police Department's FY 97-98 budget. FISCAL IMPACT: Approval of the staff recommendation will result in the total appropriation of $4,877. This figure represents $2.406 for the Director's position, and $2.471 for the Deputy Director's position for six months to the end of the current fiscal year. Based On anticipated expenses, net fiscal impact is + $95 in new revenue to the City. The Director and Deputy Director of CBAG are not eligible for the wage increases recently received by City employees. (dw) C:\wp51\scsla113s\cbagsaI.113 [December 3, 1997 (1:14pm)] ~/2 RESOLUTION NO.!W'-/-( RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING AND AMENDING THE SALARY AND BENEFITS INCREASES FOR THE EXECUTIVE DIRECTOR AND DEPUTY DIRECTOR OF THE CALIFORNIA BORDER ALLIANCE GROUP (CBAG), AND APPROPRIA- TION OF FUNDS FROM UNANTICIPATED GRANT REVENUE WHEREAS, on September 5, 1995, the City Council approved the city of Chula vista to act as the "fiscal agent" for the California Border Alliance Group and act as conduit to obtain civilian support personnel and to acquire related supplies for three employees; and WHEREAS, on July 16, 1996, the city Council approved adding two additional CBAG support personnel; and WHEREAS, this action provides for both executive level positions tied to the federal pay schedule to receive a step increase within the prescribed federal General Schedule pay by level and step (level 15, step 4 for Executive Director position and level 14, step 5 for the Deputy Director position) to be effective January, 1998 (Attachment A); and WHEREAS, staff recommends that Chula Vista pay federal government pay increases effective January 1, 1998 to the two executive positions for the CBAG Executive Director and Deputy Director, which would represent pass through costs from the City of Chula vista to these employees. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby accept and amend the salary and benefits increases as set forth in Exhibit "A" for the Executive Director (level 15, step 4) and for the Deputy Director (level 14, step 5) of the California Border Alliance Group (CBAG) effective January 1, 1998. BE IT FURTHER RESOLVED that the City Council does hereby appropriate $4,877 as set forth in Attachment "c" from the unanticipated grant revenue and amend the Police Department's Grant Fund budget to support these actions. Presented by Approved as to form by (A--- YVl A9<~ ~ John M. Kaheny, city Attorney Richard P. Emerson, Chief of Police C:\rs\cbag3 ?r~3 ATTACHMENT A ..Localir/Rates of Pay for San Diego. CA Pai.;lofl .' U.S. Office of Personnel Management 1998 General Schedule Locality Rates of Pay for San Diego, C4.. Effective January 1998 DRAFT .~ ,-. Grade Annual Ratos for StoDI (In dollars) I 2 3 " S 6 7 8 9 10 1 13 989 14.455 14.921 15..384 15851 16.124 16-'\81 . 17045 17 064 1 f.5O 1 1 15 718 16.101 16.614 17064 17.154 17762 18 169 18776 19 283 19.791 3 17.161 17,733 18..306 18 878 19.450 20 021 20.594 21166 21 738 2i3iO 4 19,165 19.907 10,s50 11192 21 834 22.476 13,119 23761 24 403 25 045 5 21.555 22.2.73 22 992 23711 14.430 15.149 15 868 26.587 17 306 18.014 6 24 025 14 826 15.627 16.428 27.219 28 030 28831 19 632 30 433 3l.U4 7 26.698 27.587 28.477 29,366 30.256 31.145 32.034 32.924 33813 34.703 8 29 568 30 553 31.539 32.524 33,510 34,495 35,481 36.466 37,451 38.437 9 32659 33.749 34.838 35.917 37016 38.105 39,194 40.283 41,372 42,461 10 35.966 37.165 38.364 39.563 40.762 41.962 43 161 44 360 45,559 46 759 11 39.516 40.833 42 149 43.466 44.783 46.100 47.417 48734 50.051 51368 12 47.360 48:g39 50~518 52 097 53 676 55.256 56.835 58.414 59.993 61,572 13 56,319 58.196 60.013 61.950 63 827 65 104 61.581 69 458 71 335 73,212 14 66.551 68.770 70.988 73.206 75.4.24 77.642 79.860 81,079 84,297 86.Sl5 15 78 283 80,893 83.503 86.113 88.723 91,333 93.943 96 553 99,163 101.773 . INCOlll'OllAtlNGTHE,~o"GEl'IEIVoLSClWlUUINCIll!.ASI"''<D ALOCAWY PAYMENT OF ,..... FOR THELOCAurv PAY ,o,UAor S.I.N DlEGO. CA (NET J:t'IlCl\lASt; 3.1)'11) To StJla7"V Ttzhle lrr.de% To CamDe1'IJoli"n Aamini.Jtrarion Hamil Pan . ToQPMHom,p(J~ . To WSb3ile Inti,: to Downlodd in PDP" F017'lat (' 1016/97 5(-Y 2:07:35 PM ATTACHMENT ncn CBAG EXECUTIVE SALARY AND BENEFITS INCREASE OBJECT COST - ACCOUNT 6 MONTHS PROPOSED USE 5101 $2,017 CBAG Executive Director salary increase 5141 313 Increase in retirement contribution - 15.5% 5143 29 Increase Medicare contribution - 1.45 % Subtotal 2,359 Increase in total compensation 47 2 % processing fee on increase Total Cost Increase $2.406 CBAG EXECUTIVE SALARY & BENEFITS INCREASE OBJECT COST - ACCOUNT 6 MONTHS PROPOSED USE 5101 $2,072 CBAG Deputy Director salary increase 5141 321 Increase in retirement contribution - 15.5% 5143 30 Increase in Medicare contribution - 1.45% Subtotal 2,423 Increase in total compensation 48 2 % processing fee on increase Total Cost Increase $2,471 8/1 ATTACHMENT B California Border Alliance Group Southwest Border High Intensity Drug Trafficking Area 225 Broadway, Suite 810, San Diego, CA 92101 Telephone: 619-557-5324, FAX: 619-557-6450 November 24, 1997 To: Dan Wolf Captain, CVPD From: Ron Papania CBAG RE: Executive Director & Deputy Director Step and COLA Attached are the copies you requested. Sorry I missed your call. I was out sick. As I indicated on the phone, the budget proposals are put together in the April to June time frame and submitted in July as the best estimate. We can adjust within the total grant. Any questions, please call me on 557-5324, ex!. 14. ?/3 COUNCIL AGENDA STATEMENT Item~ Meeting Date 12/09/97 SUBMITTED BY: RESOLUTION /'3'~J(AccePting $14,583 from South Bay Community Services (SBCS) and Appropriating such Funds for Overtime Necessary to Implement the Domestic Violence Component of the Community Assessment Grant. Chief of Police V / rll\ City Manage0~ ,~~ J (4/5ths Vote: Yes..x.. No_) ITEM TITLE: REVIEWED BY: South Bay Community Services (SBCS), in partnership with the Police Department, was awarded a grant to form a Family Violence Response Team. This grant provides a creative program for gaining early access to families with children in which domestic violence is present. The grant reimburses the Police Department for overtime expenses associated with domestic violence cases. RECOMMENDATION: That Council accept $14,583 from South Bay Community Services and appropriate such funds for patrol overtime associated with the Domestic Violence component of the Community Assessment Grant. BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. BACKGROUND: The Chula Vista Police Department has worked in partnership with South Bay Community Services (SBCS) on many projects related to youth and family services. Recently, South Bay Community Services began studying domestic violence in the City of Chula Vista. Their research found Chula Vista has the fourth largest per capita reported incidents of any jurisdiction of San Diego County. In 1992, reported incidents rose by 47% compared to 29% county wide. During a period from 1988 to 1992, Chula Vista had the second highest increase in incidents (93%1 behind only the City of San Diego (123%). During the period from 1 991 to 1995, the increase in domestic violence reports slowed but still increased by 29 %. The reason for the high number of reported incidents is unknown at this time. DISCUSSION: Based on the statistics and research above, South Bay Community Services successfully applied for a Family Violence Response grant to address issues of violence in the home. The grant involves a team response to reports of domestic violence in homes where children are present. The team consists of South Bay Community Services, Chula Vista Police Department and the Department of Social Services Children's Services Bureau. Each partner involved in this grant has specific responsibilities. The Department of Social Services will provide training, on-going case consultation and follow-up investigation on child abuse reports. The Police Department's responsibility is to activate the system when they respond to domestic violence calls and children 9/ I Page 2, Item _ Meeting Date 11/24/97 are present. The officers will also stand by to assure the safety of the assessment worker when necessary. The bulk of the responsibility in this grant belongs to South Bay Community Services. South Bay Community Services will respond seven days a week, 24 hours a day to domestic violence calls when children are present. They will do assessments in the home, make referrals as necessary, do follow-up within 24 hours and assist with necessary on-going follow-up services. This grant authorizes payment of $25,000 per year of the grant for police services. This payment is designed to off-set the impact of officers having to stay at calls for extended periods of time, training necessary to keep officers current on abuse and domestic violence issues and any overtime that may be incurred as a result of extended time spent at domestic violence calls for service. During the period from September, 1995, to August, 1996, there was roughly 2,378 domestic violence calls for service in Chula Vista. Over two-thirds of the calls occurred during non- traditional work hours. For example between 6 pm to 9 am, Monday through Friday, or on Saturdays and Sundays. The balance occurred during traditional working hours. The most disturbing statistic indicated approximately 67% of the domestic violence calls occurred in homes where there were children. These statistics illustrated a clear need for personnel to respond to domestic violence reported incidents on a 7 day a week, 24 hours a day basis. The Community Assessment Grant is a three year grant with subsequent funding subject to Federal budget deliberations at the conclusion of the grant. The payment to Chula Vista Police Department for the first year of the grant is $14,581. This is based on $2,083 per month. The $14,581 is reflective of seven months of participation for FY 97-98. The payment of $2,083 will continue until April, 2000. A total of $25,000 will be received annually. FISCAL IMPACT: Acceptance of the $14,581 this year and $25,000 the following two years from South Bay Community Services for the three year project duration has no impact on the general fund. The acceptance of these funds will off-set and reimburse 100% of associated costs related to domestic violence. Idh) C:\wp51\scs\a113s\domestic.l 13 [December 2, 1997 (2:31pm)] 9-;2., RESOLUTION NO. (~~~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $14,583 FROM SOUTH BAY COMMUNITY SERVICES (SBCS) AND APPROPRIATING SUCH FUNDS FOR OVERTIME NECESSARY TO IMPLEMENT THE DOMESTIC VIOLENCE COMPONENT OF THE COMMUNITY ASSESSMENT GRANT WHEREAS, South Bay Community partnership with the Police Department, was a Family Violence Response Team; and Services (SBCS) , in awarded a grant to form WHEREAS, this grant provides a creative program for gaining early access to families with children in which domestic violence is present; and WHEREAS, the grant reimburses the Police Department for overtime expenses associated with domestic violence cases. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby accept $14,583 from the South Bay Community Services and appropriating such funds for overtime necessary to implement the Domestic Violence Component of the Community Assessment Grant. Presented by Approved as to form by ney Richard P. Emerson, Chief of Police C:\rs\grant.sbc 9--3 COUNCIL AGENDA STATEMENT REVIEWED BY: Item / tJ Meeting Date 12/09/97 RESOLUTION jgtg' ~OriZing the Transfer (Reprogramming) of 1 996 AB 3229 Supplemental Local Law Enforcement Funds in the Amount of $33,569 for Purchase of a CAD Dispatch Component to Service Animal Control ($18,5691 and Development of Map Books ($15,000) for Public Safety. Chief of POIi~ ~p(.. / (\A City Manager-J6 ro ~rJ 14/Sths Vote: Yes..x. No_I ITEM TITLE: SUBMITTED BY: During FY 1996/97, Council accepted and appropriated 1996 AB 3229 Supplemental Local Law Enforcement funds in the amount of $356,408 for payment of personnel, overtime, and purchase of equipment. All of the programs with exception of two (purchase of a firewall' and purchase of auto ticket writers2) have been implemented or are in progress. Staff is recommending that the funds set aside for purchase of the firewall and auto ticket writers be reprogrammed for purposes of purchasing a computer aided dispatching component and map books for public safety. RECOMMENDATION: That Council approve the transfer of $33,569 originally allocated for purchase of a firewall and auto ticket writers. BOARDS/COMMISSIONS RECOMMENDATION: The state appropriation requires a regional oversight committee's approval of the funds prior to disbursement. In response, an oversight committee was established in San Diego County. The committee recommends approval of the state Local Law Enforcement funds as proposed. The San Diego County oversight committee is comprised as follows: Municipal Police Chief - County Sheriff - District Attorney - County Administrative Office - City Manager - BACKGROUND: Richard P. Emerson William Kolender Paul Pfingst Lawrence Prior III James Bowersox, Poway During the FY 96/97 the state appropriated funds for local law enforcement services per AB 3229, Chapter 134 statutes of 1996. In accordance with this legislation, Council appropriated such IF;rewall - electronic device that prohibits access to non-authorized users. 2 Auto ticket writer ~ machine that automatically prints citation information and logs the citation information into the court system. J{)-/ Page 2, Item _ Meeting Date 12/09/97 funds for front line law enforcement personnel and equipment needs. As part of this action, funds were designated for the purchase of a firewall ($10,000) and auto ticket writers ($23,569). DISCUSSION: The Police Department recommends that Council reprogram the funds designated for purchase of a firewall and auto ticket writers as follows: . Computer Automated Dispatch/Mobile Data Computer dispatching for animal control - $18,569 The Police Department is recommending reprogramming of funds for the firewall and auto ticket writers for purchase of a CAD/MDC component to dispatch for animal control services. Purchase of the firewall is no longer necessary since the CAD/MDC project (PS115) provides for adequate security measures to prevent access to Police files. As a result staff is recommending reprogramming of these funds for purchase of a component which would provide for dispatching services to animal control under the new CAD/MDC system. Purchase of this component will enhance the department's ability to track calls and response times and maintain a records management system for animal control. The total cost is anticipated to be approximately $24,000. The difference will be paid from the logging recorder savings in PS115. . Map books for public safety - $15,000 The department is currently in need of map books for public safety personnel. The existing map books are nearly illegible even when viewed in good light. Development and purchase of map books for public safety personnel is critical and needs to be addressed as soon as possible. As a result, staff is recommending that the original appropriation designated for auto ticket writers be reprogrammed for a more immediate need, developing map books for public safety personnel. In the interim, the Police Department will continue to look for other available grant funds for the purposes of purchasing auto ticket writers in the future. The $15,000 will pay for a temporary hourly employee for four months to customize and produce the new map grids which are compatible with CAD. Customization will include identification of fire hydrants, addresses, and street names. When this work is complete, the City will be able to produce high quality map books in-house which will be able to produce high quality map books in-house which will use the City's current GIS system and be maintained by public safety personnel. These maps will develop as the City rapidly grows over the next several years. GIS does not have the staff to produce these maps. The use of Thomas Brothers maps is cost prohibitive and are only updated yearly. Accurate maps are a necessity for efficient responses to public safety emergencies. FISCAL IMPACT: There is no negative impact to the General Fund as a result of reprogramming the funds for animal control dispatching and public safety map books. The reprogrammed funds will be $10,000 transferred from the FY 96 AB 3229 appropriation (account 100-1086-5560) to PS115, and $23,569 from FY 96 AB 3229 appropriation (account 100-1088-5567 to account 100-1088-5105) for a total of $33,569. The use of the $33,569 is proposed as a one time expenditure. Attachment: Council Agenda Statement dated, 10/01/96 NOT SCANNED /t1 - c2- RESOLUTION NO. /g!S:<~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE TRANSFER (REPROGRAMMING) OF 1996 AB 3229 SUPPLEMENTAL LOCAL LAW ENFORCEMENT FUNDS IN THE AMOUNT OF $33,569 FOR PURCHASE OF A CAD DISPATCH COMPONENT TO SERVICE ANIMAL CONTROL ($18,569) AND DEVELOPMENT OF MAP BOOKS ($15,000) FOR PUBLIC SAFETY WHEREAS, during FY 1996/97, Council accepted and appropriated 1996 AB 3229 Supplemental Local Law Enforcement funds in the amount of $356,408 for payment of personnel, overtime, and purchase of equipment; and WHEREAS, all of the programs with the exception of two (purchase of a firewall and purchase of auto ticket writers) have been implemented or are in progress; and WHEREAS, staff is recommending that the funds set aside for purchase of the firewall and auto ticket writers be reprogrammed for purposes of purchasing a computer aid dispatching component and map books for public safety; and WHEREAS, $33,569 originally ticket writers. it is necessary to approve the transfer of allocated for purchase of a firewall and auto NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby authorize the transfer (reprogramming) of 1996 AB 3229 Supplemental Local Law Enforcement Funds in the amount of $33,569 for Purchase of a CAD Dispatch Component to Service Animal Control ($18,569) and development of Map Books ($15,000) for Public Safety. Presented by Approved as to form by Richard P. Emerson, Chief of Police (j "-_ '/Jll~J^-Q- ~~ John M. Kaheny, Clty Attorney C:\rs\cadxfer JtJ~ J ATTACHMENT COUNCIL AGENDA STATEMENT ITEM // MEETING DATE 10/1/96 ITEM TITLE: Public Hearing to notice use of COPS Funding per AB 3229 Citizens Option for Public Safety for Local Law Enforcement Services Resolution /8"-77~ccePting $356,408 for Local Law Enforcement from the state budget to pay for police personnel and related equipment to be identified SUBMITTED BY: ," ,/ Chief of police~~c City Managerf~:)\; (4/5THS VOTE: YES~ NO_ REVIEWED BY: During the 1996-97 budget process, Council authorized the Police Department to pursue funding for Community Oriented policing projects. The state budget was adopted appropriating $356,408 to the City of Chula Vista as a result of Assembly Bill 3229, Brulte. This bill allocates state money to police departments for purposes stipulated by the Citizens Option for Public Safety (COPS) Program. RECOMMENDATION: That Council hold a public hearing to notice use of COPS funding to pay for "front line police services" and adopt a Resolution accepting $356,408 from the state budget. (This action does not put the City at risk or obligate it to accept the funds.) BOARDS/COMMISSION RECOMMENDATION: The state appropriation requires a Regional Oversight Committee's approval of the funds prior to disbursement. In response, an Oversight Committee was established in San Diego County. The Committee recommends approval of the state local law enforcement funds as proposed. The San Diego County Oversight Committee is comprised as follows: 1) One municipal Police Chief - Rick Emerson, CVPD 2) The County Sheriff - B. Kolender 3) The District Attorney - P. Pfingst 4) The County's Administrative Officer - Lawrence Prior, III 5) One City Manager - J. Bowersox, poway y/r> fj-i" PAGE 2, ITEM MEETING DATE 10/1/96 , , / ,I BACKGROUND: The California Legislature, with support of Governor Wilson, enacted AB 3229 (Chapter 134) into law during the 1996 legislature and state budget session. The legislation allocated $100 million statewide to local Police Departments, County Sheriffs and District Attorneys. Of this money, $75 million was divided among patrol- responsible law enforcement agencies, $12.5 million was distributed equally to Sheriffs for county construction and operation and the remaining $12.5 million was divided among all District Attorneys in the state for criminal prosecution. The funds for local law enforcement were divided on a $2.30 per capita basis. Based on this formula, Chula Vista was allocated $356,408 to fund "front line police services." DISCUSSION: As part of the Police Department's on-going effort to obtain COPS funding and minimize the cost of police services to the General fund four grant programs (including AB 3229) will be forwarded to Council for consideration on October 8, 1996. A summary of these programs (AB 3229, COPS Universal Hiring, Domestic Violence and the Federal Local Law Enforcement Block Grant) is attached to serve as a reference point in reviewing these agenda statements. In brief, together these programs provide $1.2 M in new funds for supplemental local law enforcement services. The funds are to be used to supplement and not supplant. Some of the grant monies require a local match and have future fiscal implications to the General fund. Staff will address these issues in the Agenda statements to be forwarded to Council on October 8, 1996. AB 3229 - Citizens Option for Public safety is one of four grant programs to be forwarded to Council for consideration on October 8, 1996. However, in order to be eligible for funding, AB 3229 - Citizens Option for Public Safety stipulates that 1) a public hearing be held in September noticing the intent to use these funds for local law enforcement services; and 2) that a plan for the use of the funds be approved by Council within 60 days of the public hearing. The police department was advised of this requirement in late September and was unable to meet the public hearing notice requirements. As a result, this public hearing is scheduled for this meeting. Staff does not anticipate any appropriation problems as a result of this action. # j[/r; PAGE 3, ITEM , ' ,- / j' /L /' ~ l ( II / ' MEETING DATE As mentioned above, the agenda item with staff's recommendation for specific USe of the funds will be forwarded to Council on October 8, 1996. This will provide Council with the opportunity to review USe of these funds in the context of all grant opportunities available at this time. In the interim, the police department recommends that the City Council accept the state allocation and approve, in concept, potential USe of the funds for personnel and equipment costs related to the expansion of the "front line police services. " Staff will describe the short and long term implications of proposed personnel or equipment purchases to be funded by this appropriation in the agenda items to be forwarded. In the event, Council chooses not to accept staff's recommendation for use of these funds, Council is under no obligation to accept the State appropriation per AB 3229. FISCAL IMPACT: Acceptance of the funds would make $356,408 available for local law enforcement needs. The funds have a 25% in-kind contribution requirement; thus, no impact to the General Fund. However, the funds must be used to supplement local law enforcement not supplant. Reoccurring costs to the City would depend on the use of the funds. Fiscal implications will be described in agenda items to be forwarded to Council. ATTACHMENT 1 - Summary of New Grant Opportunities ~ /fi/~ ATTACHMENT 1 SUMMARY OF NEW POLICE GRANT FUNDING OPPORTUNITIES Grant Title Amount Local Status Recommended Use Match of Funds AB 3229 - Citizens $356,408 In-kind To be $122,364 to offset Option for Public Services disbursed local match for 6 Safety (State Budget October 1996 officers under Appropriation) Universal Hiring Grant; $10,000 for Upgrade of Agt. to Sgt for Domestic Violence Grant $184,044 for equipment; & $50,000 for services. Universal Hiring $450,000 Spreadsheet Disbursement Pay for 6 Officers Grant - Pays partial over three Attached of A ward salaries & benefits years Pending for 6 new officers over three years. Domestic Violence $150,000 $30,000 in- A warded; Pay for one Grant - Pays for one to renewed kind funds may be Sergeant, one Agent, one Admin. annually services drawn pending Admin. Office Office Asst Ill, and for three Council's Assist. III, and $30,000 in years Approval contractual services contractual services with Children's with Children's Hospital Hospital for Family Protection Services (Federal) Local Law $257,401 10 % local A ward & Pay $94,618 for Enforcement Block match disbursement one Animal control Grant - Pays for ($25,741) of funds Officer, .5 Crime personnel, overtime, pending Prevention equipment, enhanced Council's Specialist; .5 Grant security measures. Approval Writer; $10,000 for A ward based on overtime; $95,783 Crime Rate and equipment and distributed on a per $57,000 in security capita basis. measures. ~ /0') ATTACHMENT 1 CONTINUED UNIVERSAL HIRING PROGRAM COST. The COPS Universal Hiring Program authorizes funding under the Crime Bill for six additional police officers for Chula Vista. Up to a maximum of $75,000 per officer is provided over a three year period. The grant offsets approximately 57%, 50% and 36% of the City's salary and benefit costs per position for the three-year funding period. On the fourth year, the City would pay the full cost associated with each position added. The following is a breakdown of the cost of adding new police officers. The cost for adding one new officer under the COPS Universal Hiring Grant Program is as follows: Year 1 Year 2 Year 3 Total - 3 Yr. Federal Share $27,033 (57%) $26,662 (50%) $21,248 (36%) $ 74,943 City Share 20,394 (43%) 26,661 (50%) 37,773 (64%) $ 84,828 Total $47,427 $53,323 $59,021 $159,771 The personnel cost for adding six new officers is as follows: Source Year 1 Year 2 Year 3 Total - 3Yr Federal Share $162,198 $159,972 $127,488 $449,658 City Share2 122,364 159,966 226,638 $508,968 Total $284,562 $319,938 $354,126 $958,626 2The City's share is to be offset by COPS funding per AB 3229 - Citizens Option for Public Safety. ~ /?7/g/ COUNCIL AGENDA STATEMENT ITEM /rb~ C; 7) Meeting Date: 10/22/96 ITEM TITLE: Is. Resolution J.?"Vt.s<.:.mending the FY 1996-97 budget to add 6 FTE Police Officers and Accepting $450,000 over three years from the. COPS Universal Hiring Grant and Appropriating $162,198 of such funds for hiring 6 additional Police Officers in FY 1996-97 and directing staff to budget the remaining funds as stipulated by the grant in subsequent years. ~:. Resolution/frY?; Appropriating (I) $122,364 from Fund 214 Supplemental Law Enforcement Services Fund (SLESF) AB 3229, Citizens Option for Public Safety for paying for the six officers added under the Universal Hiring Grant, (2) $184,044 for equipment procurement, and (3) $50,000 for local law enforcement services. p, Resolution /6"1-/7tIDesignating revenues generated by assignment of police officers to certain specialty assignments for payment of future Universal Hiring officer salaries & benefits. SUBMITTED BY: Chief of po~ City Manager ff (4/5ths VOTE: Yes..x.. No_) REVIEWED BY: During the FY 96-97 Budget process Council was apprised of a $450,000 allocation to the City under the COPS Universal Hiring Grant. The Police Department's initial thoughts on the potential use of the funds were forwarded to Council in a Budget Supplemental Report (Attachment I). Council directed staff to look for alternative funding or revenue generating opportunities to offset the General Fund local match requirement under the COPS Universal Hiring Grant. Following Council's action, the state budget appropriated $356,408 to the City as a result of Assembly Bill 3229, Brulte. Police staff recommends use of these funds to offset the local match requirement under the Universal Hiring Grant. As Council may recall, this bill allocated state money to police departments for purposes stipulated by the Citizens Option for Public Safety (COPS) Program. A public hearing was held on October I, 1996, as required by the legislation, to accept these funds for police personnel and related equipment to be identified (Attachment 2). This agenda statement proposes to use funds from the state budget appropriation, AB 3229 (Fund 214) for personnel ($122,364), equipment ($184,044) and local law enforcement services ($50,000). !J;.{v-r> 1/-7 Page 2 ITEM Meeting Date: 10/22/96 RECOMMENDATION: That Council: I) Amend the FY 96-97 budget adding six officers to enhance community policing efforts under the Universal Hiring Grant: and Appropriate funds from the Universat" Hiring Grant and AB 3229 - Citizens Option for Public Safety to pay for the six officers. 2) That Council appropriate funds from the Citizens Option for Public Safety for procurement of local law enforcement equipment ($184,044) and services ($50,000). 3) Designate revenues generated from the Universal Hiring police officer positions for payment of future officer salaries and benefits associated with this program. BOARDS/COMMISSION RECOMMENDATION: N/A BACKGROUND: COPS Universal Hirine: Grant - The most visible component of the Crime Bill is the Community Oriented Policing Services (COPS) Program. The COPS Program authorizes the United States Department of Justice (DOJ), under the direction of the United States Attorney General, to provide funding to local governments for additional sworn law enforcement officers. Four officers were added to the Police Department and funded by the Crime Bill (COPS AHEAD) in FY 95-96. Based on that grant submittal, the DOJ developed the COPS Universal Hiring Program to deploy additional new officers devoted to community policing. In May 1996, DOJ announced that the City of Chula Vista was eligible to receive $450,000 for six new officers under the Universal Hiring Grant Program. A Budget Supplemental Report, with the Police Department's initial thoughts on the potential use of funds, was forwarded to Council during the FY 96-97 budget process. State Budget Appropriation (AB 3229) - The California Legislature and the Governor enacted AB 3229 (Chapter 134) into law during the 1996 legislature and state budget session. the legislation allocated $100 million statewide to local Police Departments, County sheriffs and District Attorneys. Of this money, $75 million was divided among patrol-responsible law enforcement agencies, $12.5 million was distributed equally to Sheriffs for county construction and operation and the remaining $12.5 million was divided among all district Attorneys in the state for criminal prosecution. The funds for local law enforcement were divided on a $2.30 per capita basis. Chula Vista was allocated $356,408 to fund "front line police services." /~/o//o Page 3 ITEM_ Meeting Date: 10/22/96 DISCUSSION: During the budget process, the Police Department presented Council with preliminary thoughts on hiring six new officers under the Universal Hiring Grant. The Police Department proposes' to use the state appropriation; AB 3229 - Citizens Option for Public Safety to add the six police officers to patrol with no impact to the general fund. UNIVERSAL HIRING PROGRAM COST The COPS Universal Hiring Program authorizes funding under the Crime Bill for six additional police officers for Chula Vista. Up to a maximum of $75,000 per officer is provided over a three year period. The grant offsets approximately 57%, 50% and 36% of the City's salary and benefit costs per position for the three-year funding period. On the fourth year, the City would pay the full cost associated with each position added. The following is a breakdown of the cost of adding new police officers. The cost for adding one new officer under the COPS Universal Hiring Grant Program is as follows: Year 1 Year 2 Year 3 Total - 3 Yr. Federal Share $27,033 (57%) $26,662 (50%) $21,248 (36%) $ 74,943 City Share! 20,394 (43%) 26,661 (50%) 37,773 (64%) $ 84,828 Total $47,427 $53,323 $59,021 $159,771 The personnel cost for adding six new officers is as follows: Source Year 1 Year 2 Year 3 Total - 3Yr Federal Share $162,198 $159,972 $127,488 $449,658 City Share2 122,364 159,966 226,638 $508,968 Total $284,562 $319,938 $354,126 $958,626 For the first year, the police department proposes that $122,364 from the State budget appropriation (AB 3229) of $356,408 be used as the City's share. The annual appropriation of these funds will be subject to the annual State budget deliberations. !The "City Share" is proposed to be paid from the State budget appropriation, AB 3229 - Citizens Option for Public Safety. 2See footnote 1 /.//,~ ;~ ~-' ![J-)/ PROPOSED ASSIGNMENT Page 4 ITEM_ Meeting Date: 10/22/96 The additional six officers will be added to patrol. These officers will be paid from the COPS Universal Hiring Grant and the State budget appropriation per AB 3229. Six existing officers (currently paid from the general fund) with the level of experience required will be assigned to the following specialty assignments as a result of this grant program. There are no additional costs to the general fund as a result of these assignments. Moreover, the following position assignments will contribute to the departments on-going efforts to reduce police response times and meet Growth Management Oversight committee (GMOC) thresholds. The specific assignments are as follows: One Officer would be added to the Narcotics Task Force (NTF). The Police Department currently has one officer assigned to NTF. This position's costs are offset by funds received as a result of asset sharing. The City receives I. 75 % of countywide asset seizures based on one officer with the NTF. A total of $61,743 was received as a result of the existing position's participation in NTF in FY 95-96. Adding a second position would generate an additional I. 25 % of countywide asset seizure funds annually . We estimate this position will generate $45,000 in new on-going revenue to be specifically designated to offset the future cost of salaries and benefits associated with positions added under the COPS Universal Hiring Grant. These funds will be used in the event the three year Universal Hiring Grant expires or the State budget appropriation is eliminated. In the event both funding sources are available during the three year grant period an estimated $135,000 ($45,000 x 3 yrs) in revenue generated by this position would be available to offset costs associated with this position and other positions added under this grant proposal. The $45,000 annually in revenue will continue to be an on-going revenue source for this program. Two Officers would be added as School Resource Officers (SRO). The Police Department currently has a total of seven SRO's (four at the high school and three at the elementary level). SRO's are uniformed officers assigned full time to local high schools or elementary schools to perform patrol enforcement functions on campus. They are responsible for documenting crime incidents at campuses and making necessary arrests. During calendar year 1995, 246 arrests were made by SRO's. In addition to their role as enforcers of the law, SRO's are attentive to student and campus personnel, follow-up with truant students. facilitate parent/teacher/student meetings for students with behavioral problems, and serve as mentors and role models. The elementary school district currently has three officers assigned. The elementary school district currently reimburses the city for the cost of one SRO. Two additional SRO positions have been requested. The Police Department concurs that a need exists for two additional SRO positions at the elementary level. Consistent with the existing practice, the Elementary School District has indicated that they are willing to reimburse the City for the cost of one position. As a result, the Police Department recommends the two Elementary School District SRO positions be authorized contingent on the elementary school district paying for one position. The $65.000 in revenue to be generated from this proposal would be designated toward payment of future costs associated with these positions after the grant expires. ~/ )tJ~/~ Page 5 ITEM_ Meeting Date: 10/22/96 One Officer would be hired to enhance business policing efforts. Consistent with our community policing efforts, the department would propose to add an officer to work directly with the business community to promote compliance, streamline the special event process, and educate the business community on crime prevention measures. For example. this position would work closely with the Amphitheater (MCA) to make sure all security, traffic con\rol and law enforcement activities related to the Amphitheater are to the satisfaction of the Chief of Police. The staff time spent on MCA activities will be reimbursed. In addition, to special event policing, this position will liaison with the business community to facilitate their needs, promote compliance with City ordinances and implement crime prevention measures. For example, this position would facilitate on-going fraud training to the North Island Credit Union (NIFCU). This training was recently provided and helped reduce NIFCU's actual check fraud losses by $126,000 and the number of fraud cases by 50%. In addition NIFCU, documented that they avoided $300,000 in losses during the past 12 months through early detection as a result of the fraud training received by the Police Department. Two Officers would be added to form the street team to enhance Community Policing efforts. The Police Department has made proactive policing a priority. Our approach has been that it is more effective to prevent crime before it occurs. The Street Team was implemented in FY 1993-94 to help reduce street level crime like robberies and deter drug dealing. The Street Team is a proactive enforcement unit providing resolution strategies to crime problems identified by crime analysis, patrol and investigative personnel. Through citizen contacts, team members stay informed about crime problems identified by residents and business owners in the community. The Street Team would continue to focus on community outreach and increasing the use of Problem Oriented Policing (POP) projects to pro-actively problem solve at specific locations in Chula Vista. Current Street Team members participated in several POP projects during the year. By focusing on identified problem areas within the City, including shopping centers and swap meets, the team had a direct impact on reducing auto theft, violent crime and burglary. By using the Street Team approach, the Police Department will continue to serve as a catalyst to bring together appropriate resources to address specific community safety problems and prevent crime before it occurs. This is another way of adapting to challenges facing a community that continues to grow. EQUIPMENT & SERVICE PROCUREMENT After paying for the previously mentioned local match requirement, $199,569 from AB 3229 - Citizens Option for Public Safety remains available for local law enforcement equipment and services. The Police department recommends these funds be appropriated as described on the next page: $126,000 in equipment, $23,569 minor CIP, and $50,000 for police related services. ~ JtJ-)3 Page 6 ITEM_ Meeting Date: 10/22/96 EOUIPMENT - $126.000 Patrol Vehicles & Officer Associated Equipment (Radio, MDT, etc.) The Police Department would propose to purchase three patrol vehicles at a cost of ($21,258 each) plus related equipment ($12,669 each), and outfitting costs ($2,740 each) for a total of $110,000 for use by the six new officers. Related equipment costs include: the Code 3 MX7000 Lightbar, Flashlight charger, Shotgun Lock timer, Mount & Lock, Unitrol Touchmaster Siren & Lightbar Control, Siren Speaker, Headlight Wigwag, Troy Console, Setina S-8 Prisoner Screen, Decals, Prisoner Cage Extension, RadiolPA Microphone, Motorola Radio Hi-band, Mobile Data Terminal, etc. The department recommends $110,000 be appropriated for this purpose from funding per AB 3229 - Citizens Option for Public Safety. K-9 dog and related equipment ($6,000). The Police Department K-9 program is currently short two dogs and anticipates a third dog is near retirement. Past fiscal constraints have made it difficult to maintain full K-9 staffing. One dog is authorized to be purchased this year, as a result the department will be one dog short and two short after the upcoming retirement. Based on the upcoming retirement, the Police department would propose that a dog be purchased from this grant. Purchase of a Firewall ($10,000) to protect police records. A firewall is a device (smaller than the CPU of a PC) that connects to the front of a network, to prevent unauthorized access to files. The Police Department is in the process of hooking up to the citywide network. Management Information Services has recommended the purchase of a firewall to protect police records and confidential information. MINOR CIP - $23.569 Automated Traffic Ticketing ($ 23.569) - The Police Department is exploring the possibility of automating traffic ticketing for moving and parking violations. Additional staff work is needed prior to proceeding with this project and making a final staff recommendation. For example, police staff is working with South Bay Municipal Court to identify State monies to cover 50 % of the equipment and transition costs and Finance staff to determine if the use of parking meter funds is appropriate. The department recommends earmarking these funds for the purpose of purchasing automated traffic ticketing equipment to be used by the Police Department and Parking Meter staff. Staff will return to Council at a later date with a detailed report on this project including available funding. SERVICES - $50,000 Community Outreach ($25,000). The Police Department recommends funds be appropriated to support Community Policing services provided by various groups (SVPP, CAST, Explorers, School Patrol, Reserves, PAL and Volunteers) under the umbrella of the Police Department. These groups help enhance the Community Policing efforts. /~ J!'l-JLj' Page 7 ITEM_ Meeting Date: 10/22/96 Training & Strategic Planning ($25,000). In light of a growing community, training and strategic planning are vital. Additionally, the Growth Management Committee (GMOC) has recommended the Police Department develop a strategic plan to manage future growth and meet GMOC thresholds. The Police Department recommends funds be earmarked for this purpose. FISCAL IMPACT Year 1 - The personnel costs of the six officers would be paid for from funding the State appropriation per AB 3229, Citizens Option for Public Safety and the COPS Universal Hiring Grant. Approval of Staff's recommendation would generate $45,000 from the officer position to be assigned to the Narcotics Task Force (NTF) and a minimum of $65,000 from the School Resource Position (SRO) to be assigned to the elementary school district. In addition, to an unknown amount of revenue from the Amphitheater. Automotive equipment purchased from this grant will be placed on the replacement schedule when placed in service. There will be approximately $12,800 in recurring maintenance costs for the three patrol vehicles and the one undercover vehicle added to the general fund in year 2. There are no recurring service costs proposed. Years 2 & 3 - Assuming continuance of the State appropriation (AB 3229), no net impact to the General Fund and revenue generation of $110,000 annually as described earlier. After Year 3, the cost of the six officers, will be offset by the revenue generated by the NTF, and SRO positions and possible continued State funding. The state appropriation is subject to the state budget annual deliberations. In the event the State funding is eliminated the net cost to the General Fund is $159,966 for year two and $226,638 for year three. LONG-TERM IMPLICATIONS These positions will be paid for through year three by the combination of the COPS Universal Hiring Grant and the State budget appropriation (AB 3229) discussed in this agenda statement. Additionally revenue generated by these positions will be collected and earmarked to pay for the fourth year. It is estimated that $110,000 will be collected annually from the revenue generating positions discussed in this agenda statement. Based on this assumption, at the end of three years, $330,000 would be available to offset $354,126 in annual salary and benefits associated with the proposed six positions. The city will incur $24,126 in the fourth year (FY 2000-2001). The City will start incurring the full cost of the proposed positions minus on-going revenue of $110,000 in the fifth year (FY 2001-2002). The on-going cost to the City starting the fifth year is estimated to be $254,126. This cost does not include any future salary or benefit increases. Attachments: 1) Budget Supplemental Report 2) AB 3229 - Citizens Option for Public Safety A 113 3) Budget Detail (Spreadsheet) ~ /tJ-~5 .:ov........___.___,......__~. \.".._1$ < <$1"E\Ill1'l!<:>slliSla'SIt (619) ~1303 >// Business news (619) 293-1512 UTStox (619) 686-2000 . Quotes by phone. 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DELIVERY DEADLINES: 6 a.m. Monday- friday and 7 a.m. weekends and holidays. If you do not receive your paper. please telephone before 10:30 a.m. daily or noon pn weekends and holidays, and a replace- ment will be del1vered. $ingle CopylNewsstand C~stomer Service (800) 533-8830 ~ RATES: Daily 35(.; Sunday $1.S0.lncludes tax Iwail subscriptions .. ~RATES: Payable in advance and subj~~t~'~' California sales tax. S 16 per month for daily andSundaydelivery;S15 per month daily deliveryonly:S14permonthforSundayonly. roreign rates upon application. Advertising clARY MOORE. ADVERTISING UIRECTOR _ (619) 293-1500 $eJiil Rate inquiries ATTACHMENT E .._.._"..~--..--:. ~'" Taxpayers group hits sales tax for libraries By Roger M. Showley STAFF WRITEP.. The San Diego County Taxpay- ers Association came out yesterday against the idea of adding a quarter of a percentage point to the county- wide sales tax to aid branch librar- ies, acting even before the pro~ posed ballot measure has been written. Proponents are aiming at next year's June or November ballot. The association executive direc- tor, Scott Barnett, said at a press conference that his group is taking this stand out of frustration with the lack of analysis of the region's library needs. "They have had a year to address these issues," he said, referring to the failure of a similar measure, Proposition A, in November 1996. It garnered 59.1 percent support when 66.7 percent was needed for passage. Barnett said his meetings with library tax proponents indicate that the new measure will differ little from last year's attempt. The tax proposal is being devel- oped by the 19-member San Diego County Regional Library Authority, which includes representatives of the area's cities and the county Board of Supervisors. Barnett singled out for criticism the idea of depositing much of the $411 million projected to come from the five-year tax into trust funds or endowments. The annual interest on the accounts would be used to augment budgets for the operation and maintenance of about 75 branch public libraries around the county. "We feel it's poor public policy," Barnett said, explaining that the library funds would not be available for other needs should priorities change. < The taxpayer group also has come out against building a new main San Diego city library down- town as currently designed and funded. San Diego City Councilwoman Judy McCarty, who chairs the reo gional library authority, called the association's objections "flimsy ex- cuses." She defended the trust fund or endowment concept as "fiscally responsible" because it would en- sure added money for library opera- tions and maintenance. "It is totally p~ema~.~re,"..she sw~!d ~~'~"_"""f"I"w'''''''''t," ^ .... -";~.,-,' ""'!t"'~', READY FOR CHRISTMAS TONY OOU City worker Chris Przyborowski put lights an on the living Christmas tree near Balboa Pal Spreckels Organ Pavilion. S.D. council aims 1 arUEna~controls~ By Ray Huard STAFF WRITER Too many dogs are running loose, while animal-control costs are too high, San Diego City Coun- cil members said yesterday. Just yesterday. Councilwoman Valerie Stallings said, she was threatened by two wild dogs while walking her dog on Fiesta Island. .~ e have a system that is bro~en and needs to be fixed and, I must say, the animals are suffering," Stallings said. Council members agreed in an interim contract to continue' using the county Department of Animal Control services through March 31 while seeking other ways of con- . trolling the city's animal popula- tion. "We need to look at some of the alternatives," said Councilwoman Judy McCarty, chairman of the council Select Committee on Gov- n_L'_L __ revenue, the cotm The committe! those services are law and may be I pensively throu! means. For example. sl require that the c cats or provide a for cats. And Councilwon hoe said the citl spending so much city facing a poten million or more u year, which will be "It should not b much," Kehoe said Mayor Susan ( can be done belt! would not want tb own animal-contn "I guarantee Y' it won't cost us tnl The county Boa .'" ..1...",,,,"\17 rrr!JnnM COUNCIL AGENDA STATEMENT Item 11 Meeting Date 12/9/97 This item has been deleted from the agenda. This page is included for numbering purposes only. //-J COUNaLAGENDASTATEMENT ITEM /,2 MEETING DATE: 12/9/97 SUBM11TED BY: / S"? 30 Resolution Approving a Vision Statement and a Spending Allocation Plan for the Proposed Quarter of a Cent Sales Tax For Libraries LibraryDirector~ /\\A City Manage~6 ~ tJ!! i \ (4/5th Vote: Yes_No-X) ITEM TITLE: REVIEWED BY: The Regional Library Authority has requested that each library jurisdiction prepare a "vision statement" and a spending allocation plan for monies raised by the proposed quarter of a cent sales tax. The Authority is scheduled to meet and review the plans from Chula Vista and the other library systems on Thursday, December II, 1997. RECOMMENDATION: That Council approve the "vision statement" and the spending allocation plan for the anticipated revenue raised from the proposed quarter of a cent sales tax to supplement current library service. BOARD/COMMISSION RECOMMENDATION: The Library Board of Trustees met on November 19, 1997 and voted to endorse the staff proposal (ATTACHMENT A). DISCUSSION: In the summer of 1996, the County Board of Supervisors created a Regional Library Authority which ultimately placed a quarter of a cent sales tax for libraries on the November 1996 ballot. Although the measure did not receive the necessary super majority, the measure was supported by 59% of County's voters. The outcome was very similar in Chula Vista, where 59.5% of the voters agreed to the proposed sales tax increase. In 42 ofChula Vista's 78 precincts, the yes vote was over 60%. After the election, the Regional Library Authority expired. On October 7, 1997, the City Council approved Resolution 18788 (ATTACHMENT B) supporting the re-formation of a County Library Authority for the purposes of placing another library sales tax on the ballot and appointing the Mayor as the representative to the Authority. On October 21, 1997, the County Board of Supervisors approved Resolution 97-329 establishing the County Regional Library Authority and specifying its purposes. /.:<~/ ITEM PAGE 2 MEETING DATE: 12\9/96 The new Library Authority met for the first time on November 3, 1997. Besides formally ca1Iing itself to order, the members reviewed the 1996 election results. They also asked each library jurisdiction to prepare two elements to be reviewed at their next meeting on December 11, 1997: 1. A vision statement which describes the philosophy behind the proposed spending allocations 2 A spending allocation plan on how the monies raised would be spent The Authority has not yet determined whether to place the sales tax measure on the June or November 1998 ballot. It is anticipated that should the quarter of a cent sales tax for libraries be approved, approximately $79.8 million annuaIly would be raised county-wide, with $4 million per year accruing to Chula Vista based upon the amount of sales tax activity within the City. Sales tax earned in the City will stay in the City. The tax would be collected for five years and would, eventually, total $20,000,000. This figure could rise or fall depending on the amount of sales tax revenue. The monies could only be used to supplement current public library services provided by the General Fund, and not used to supplant current servicesl In preparation for their recommendation to City Council, the Library Board of Trustees asked the Library to solicit public input on spending priorities through a non-scientific survey (ATTACHMENTS C & D). The survey was conducted the first week in November with over 1,000 patrons responding. The results showed that the respondents favored using the money in the following priority: (I) More Books (the majority of all respondents system-wide wanted more books and other library materials) (2) More Open Hours (South Chula Vista patrons selected this as the highest priority) (3) Additional Public Use Computers (4) New Library East ofI-80S (S) Additional Youth Services lThe benchmark figure for "current services" would be the Library's General Fund budget during the fiscal year the tax is approved by the voters. Therefore, if the vote is held in June, the FY 1997-98 budget would be considered the base. If the vote is in November, the FY 1998-99 budget would instead be used. ) e2 - .1... ITEM ,PAGE 3 MEETING DATE: 12\9/96 After a review of the options, the Library Board of Trustees, Friends of the Library, and staff recommend the "vision statement" and a $20 million expenditure plan as outlined below. This proposal is designed to appeal to a wide range of voters and to garner support from all parts of the community as well as meet high priority needs for library service. PROPOSED VISION STATEMENT: In direct response to citizen requests, the Chula Vista Public Library proposes to provide increased access and improved services to residents PROPOSED SPENDING ALLOCATION PLAN Buy More Books and Library Materials 56,100,000' $1,850,000 would be spent over the five years to increase the number of books, videos, compact discs, audio cassettes and other software products available to the public. This infusion of funds would also allow the Library to eliminate the $15 a year Video Insurance Fee which families must pay in order to check-out videos. . $3,500,000 would be put into a perpetual book fund (or endowment) which would earn approximately $300,000 annually for new books and library materials. Use of the interest would not begin until after the tax expires in five years. NOTE: Staff and the Library Board realizes that the Taxpayers Association opposes this concept (ATTACHMENT E). However, the Library believes that by establishing endowment funds for very specifically targeted purposes, the monies are being allocated in a responsible, appropriate manner. Endowments show that the City is looking to the future and not strictly relying upon the tax monies to pay for services that will go away when the tax ends in five years. Instead, Library users will continue to see new books and new technology for many, many years to come. Over the course of five years, $750,000 would be allocated for Technical Services staff, supplies and services to support the acquisition, cataloging and processing of the new materials. 2The dollar figures represent the estimated total cost of each program element over the course of the five year life span of the tax. The various elements combined total $20,000,000. /;2~~ ITEM ,PAGE 4 MEETING DATE: 12\9/96 Increase Hours at all Branch Libraries $1,160,000 Approximately $232,000 would be spent annually, over the five year period, to increase public service hours at all three branches. The per week hours would increase by ten (various mornings, nights, Saturdays) at South Chula Vista, five at Civic Center/Main (mornings 9 to 10), and EastLake by four (Sunday afternoons). Add More Public Service Staff to Assist the Public $1,500,000 Approximately $300,000 a year would be spent to add 4.5 librarians (2 each at Civic Center/Main and South Chula Vista Libraries and .5 at EastLake Library) and 2.5 Library Aides (I each at Civic Center/Main and South Chula Vista and.5 at EastLake) to provide prompter service to the public, as well as expanded children's and youth services programs. Increase Availability of Public Computers and New Technologies $550,000 $30,000 a year would be allocated for new computers and technology upgrades. With information delivery now so reliant upon computer technology, public libraries are faced with a never ending struggle to catch-up with public demands and expectations. Monies would also be used to comply with the frequent request to provide access to the Library's catalog and other databases from all elementary and high schools as well as from home. $400,000 would be used to create a perpetual technology fund (or endowment) for the specific purpose of keeping abreast with new technologies. The fund should produce approximately $35,000 a year beginning in year six. Use of the interest would not begin until the tax expires in five years. Construct an East-Side Branch Library 510,300,000 A majority of the dollars raised should be used to fast track the construction of a 30,000 square foot library east ofI-805 as called for in the Library Facility Master Plan. This 30,000 square foot project is to be funded 100% by Development Impact Fees (OIF). However, it is anticipated that the total amount of public facility DIF funds needed will not be available until 2010. It has been determined that sales tax monies raised solely for libraries (which will go directly into the General Fund) could be used for the construction as long as DIF monies eventually reimburse the General Fund. These General Fund reimbursements could then be used to pay for Library operations once the building is constructed. This concept has been approved by the City Attorney's office and the City's Public Facilities DIF consultant. l2-t( ITEM PAGE 5 MEETING DATE: 12\9/96 Under this proposal, a $10.3 million library could be constructed many years earlier than anticipated and that a steady stream of revenue would be then available to operate the facility for 9 to 10 years after completion. Repair/Renovate the Civic Center Library $390,000 The worn carpet and decorative banners would be replaced, furniture would be repaired or replaced, and the wiring and technological infrastructure would be improved. FISCAL IMPACT: As discussed above, if approved by two thirds of the votes, the quarter of a cent sales tax would raise approximately $4 million a year, for five years, for the Chula Vista Public Library. The estimated $20 million would be used to supplement current General Fund support. The acutal amount of money available will be dependent upon the sales tax collected within the City limits. The monies collected would come directly to the City of Chula Vista and would be appropriated by City Council during the annual budget process Approximately 87% of the accumulated tax monies would be spent on one time appropriations (new building, endowments, etc.). The remaining 13% would be spent to increase hours and add additional public service staff. It is understood that these elements might cease at the end of the five year life of the sales tax, unless the tax was renewed or other funding sources were identified. IJ f)-fl(!N H~,v rs NOT SCANNED /c2 ~ 5" RESOLUTION NO. /1J'g'3C? RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING A VISION STATEMENT AND A SPENDING ALLOCATION PLAN FOR THE PROPOSED QUARTER OF A CENT SALES TAX FOR LIBRARIES WHEREAS, the Regional Library Authority has requested that each library jurisdiction prepare a "vision statement" and a spending allocation plan for monies raised by the proposed quarter of a cent sales tax; and WHEREAS, the the plans from Chula Thursday, December 11, Authority is scheduled to meet vista and the other library 1997; and and review systems on WHEREAS, after a review of the options, the Library Board of Trustees, Friends of the Library and staff recommended the following "vision statement": In direct response to citizen requests, the Chula Vista Public Library proposes to provide increased access and improved services to residents. WHEREAS, the following is the proposed $20 million spending allocation plan: . . . Buy more books and library materials Increase hours at all branch libraries All more public service staff to assist the public Increase availability of public computers and new technologies Construct an East-side Branch Library Repair/Renovate the civic Center Library $6,040,000 1,160,000 1,500,000 . . . 550,000 10,300,000 200,000 NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby approve the Vision Statement and Spending Allocation Plan for the proposed quarter of a cent sales tax for libraries as set forth above. Presented by Approved as to form by ttorney David Palmer, Library Director C:\rs\vision.lib /;2 -t ATTACHMENT A DRAFT MINUTES LffiRARY BOARD OF TRUSTEES November 19, 1997 LffiRARY CONFERENCE ROOM 3:30 PM BOARD MEMBERS PRESENT: Chair Clover-Byram, Vice Chair Alexander, Trustees Charett, Valdovinos, Viesca and Student Member Pefta BOARD MEMBERS ABSENT: None CITY STAFF PRESENT: Library Director Palmer, Principal Librarian Paula Brown OTHERS PRESENT: Robert Coye, George Krempl, Ignacio Valdovinos I. APPROVAL OF MINUTES - Meeting of September 24, 1997 This item was tabled until the January meeting. 11. CONTINUED MATTERS A. Library Sales Tax Initiative The Library Authority met on November 3 and requested library jurisdictions submit a spending plan for funds received from the proposed sales tax initiative by December 11, 1997. Jurisdictions were also asked to provide a vision statement. Staff expanded last year's spending plan to make it more descriptive. Trustees were asked for their input into the spending plan and vision statement. (copies attached) The issue of building a new library with sales tax revenue, and then reimbursing the general funds with development impact fees, was intensively researched and is legal as long as no wording in the ballot measure prohibiting such action. The Friends Umbrella Board reviewed this proposed spending plan last week and supported the spending plan in concept with the addition of an element pertaining to the Museum. It was suggested that funds be allocated to prepare a Museum Strategic Plan coupled with a Local History Strategic Plan. The Taxpayers Association does not favor endowments or perpetual funds. Chair Clover-Byram asked if the perpetual funds would be included in the Library's endowment. Director Palmer reported that a separate accounting would be )2-7 necessary for these funds. Vice Chair Alexander asked that efforts be made to provide a concrete and substantial Spanish language collection at South Chula Vista. Vice Chair Alexander reported that Director Palmer and City Management had met with new Southwestern College President and that he and David were charged with exploring successful cases of joint libraries. He reported that he is in the information gathering phase of this project. Director Palmer reported that the library has conducted a site-specific bi-lingual public survey at the direction of the Library Board. Library patrons were asked to give their opinions on the following issues: 1. More open hours 2. More books 3. Additional public use computers 4. Additional youth services 5. New library east of805 Most responses wanted more open hours and more books. These responses guided staff in the creation of the spending plan. (Trustee Viesca arrived at 4:23 pm) After some discussion, Trustees indicated they were very supportive of the Museum, however, they felt it was a separate entity from the library. Trustees asked that someone from the Museum attend the next Trustee's meeting. MSUC (AlexanderNaldovinos) The Library Board supports efforts through existing resources to provide a Museum Master Plan and does not endorse including it in the library bond issue. MSUC (AlexanderNaldovinos) The Library Board of Trustees supports the allocation of the $20 million dollar spending priorities ).2-Ir ATTACHMENT B I, Minutes October 7. 1997 Page 3 as a team and are considered the best qualified to economically and efficiently sln1cture and market the bonds. The Resolution was approved 5-<1. (Director of Finance) e2 RESOLUTION 18788 TAKING A POSITION TO SUPPORT THE FORMATION OF A COUNTY LmRARY AUTHORITY FOR THE PURPOSE OF PLACING A QUARTER OF A CENT SALES TAX MEASURE ON THE BALLOT AND DESIGNATING THE MAYOR TO ACT AS THE CITY'S REPRESENTATIVE ON SAID AUTHORITY - On 1017/97. the San Diego County Board of Supervisors is scheduled to approve a resolution to create a County-wide Library Authority. This Authority will consider placing a 1/4 cent sales tax proposal on the 612/98 ballot. If placed on the ballot and approved. the tax would be in effect for five years. would be dedicated to library improvements only. and would provide Chula Vista with an estimated $15 - $19 million dollars. The resolution was approved 5-0. (Library Director) 9. RESOLUTION 18789 AMENDING THE FISCAL YEAR 1997/98 BUDGET TO APPROPRIATE $17,492 FOR THE MIDDLE SCHOOL PROGRAM FROM THE GENERAL FUND RESERVE; AND ADDING A 0.75 FULL-TIME EQillVALENT (FTE) YOUTH COORDINATOR (UNCLASSIFIED) TO SUPERVISE THE PROGRAM; AND ADDING 0.48 FTE PART -TIME HOURL Y RECREATION LEADER TO STAFF THE PROGRAM; AND TO APPROPRIATE $24.492 TO 100-1562 FROM UNANTICIPATED REVENUE OF $24,492 FROM SWEETW A TER HIGH SCHOOL DISTRICT FOR THE MIDDLE SCHOOL PROGRAM - At the budget workshop on 6/2/97. Council heard the-proposal for a Middle School Program from the Principal of the Chula Vista Junior High School. A proposal has been prepared for the City to fund the program. in conjunction with funds already approved by the Sweetwater Union High School District, to implement an after-school program at each of the four middle schools. (Director of Parks. Recreation and Open Space) 4/5th's vote required. City Manager Goss requested the item be continued; it will come back when it is ready. Mayor Horton stated that she was recently approached by someone whose daughter was a part-time recreational employee who was participating in an after-school program. There were times when no one was there other than herself. She requested that staff come back with a report on this item telling the Council a little bit about the different programs at the different schools and how many children are participating. This is so the Council can fully understand how effective these programs are to make sure that our money is being wdl spent. Weare all supportive of these after-school programs. but we want to make sure they are successful. Councilmember Salas stated she would like to explon:: better utilization of the time and hours and identify which school needs the services the most in order to establish a five-day program in one of the middle schools. If you are going to provide it two days a week. you are not going to establish any type of consistency in the children attending that. She would like to see if there was any data on which middle school had the highest need. She would rather see service five-days a week consolidated in one school that has a greater need. Councilmember Moot stated that in the budget the Council approved the experimental program at one school. He was not sure how it got expanded to three schools and what the budget implications are. Mr. Goss stated that was approved for five days a week on an experimental basis. At the same time there was a request by the Council to come back to see what we could do to expand it to the other middle schools. This is a discussion that we had with Sweetwater District. and we brought it back to show you how it could be expanded. Councilmember Rindone added that the point regarding consistency was valid. but he was also equally concerned about the cost of the programs. We will have to balance both of these issues. An additional item for staff's analysis is the cost of a four-day-a-week program. We have had experience in the past that attendance is active Monday through Thursday and drops off on Friday because of weekend activities and related community athletic programs. It might be a viable alternative to consider four-days since it will provide consistency and will save 20% of the cost. . . · END OF CONSENT CALENDAR · · . /"<-'7 We want your opinion... ATTACHMENT C The county Regional Library Authority will once again place a 5 year, 1/4 cent sales tax measure on the ballot in 1998. It will take 67% of the vote to pass, and it would mean almost $20 million for Chula Vista Libraries. The Library Board of Trustees has requested that you help us determine how it should be spent. Please fill this out and return it to the survey box at the Check-out desk. ENHANCEMENT RANK (please number 1-5, with 1 as "most important") *More open hours *More books * Additional public use computers * Additional Children's Services *New full-service library east of 805 Other ideas (use the space below): We want your opinion... The county Regional Library Authority will once again place a 5 year, 1/4 cent sales tax measure on the ballot in 1998. It will take 67% of the vote to pass, and it would mean almost $20 million for Chula Vista Libraries. The Library Board of Trustees has requested that you help us determine how it should be spent. Please fill this out and return it to the survey box at the Check-out desk. ENHANCEMENT RANK (please number 1-5, with I as "most important") *More open hours *More books * Additional public use computers * Additional Children's Services *New full-service library east of 805 Other ideas (use the space below): /}//o ATTACHMENT D ...... 0') 0') ..... :> o Z >. 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COUNCIL AGENDA STATEMENT ITEM /.3 MEETING DATE 12/09/97 I g'g'31 ITEM TITLE: Resolution accepting California State Library matching funds awarded to the Chula Vista Literacy Team, appropriating funds, and amending FY 1997-98 budget. SUBMITTED BY: Library Directo~ / C kA REVIEWED BY: City Manage~ '07\~ote: YES ~ NO ~ In 1987 the library received a five-year CalifJJua State Library grant to establish the Chula Vista Literacy Team. The fifth and final year of this funding was FY '91-92. The California State Library has announced another one-year extension of California Library Services Act funding for programs which were awarded the original five-year grants. The FY '97-98 awards are based on a match of$l for every $4.68 raised and spent locally during FY '97-98. This will provide $32,359 to the Chula Vista Literacy Team. RECOMMENDATION: That Council adopt the resolution accepting the grant, appropriating the funds, and amending the FY 1997-98 budget. BOARD/COMMISSION RECOMMENDATION: The Library Board of Trustees has traditionally supported the Literacy Team's acceptance of matching funds, which are a continuation of the original CLSA literacy grant. DISCUSSION: As an extension of the original CLSA literacy grant, this $32,359 grant is intended to supplement monies raised locally to support the library's adult literacy program. Funds will be used to continue the professional services contract with our computer lab coordinator, who provides key support to the adult literacy learning lab at the Literacy Center, located in the South Chula Vista Library. Funds will also be used to hire one or more instructors to provide inservice support to tutors, lead small group classes, and aid in the learner assessment process. This plan has been approved by the California State Library. FISCAL IMPACT: Accepting this grant will provide $32,359 in FY '97-98 to the Chula Vista Literacy Team. These funds cannot supplant existing funds. (For matching fund budget, see Attachment A.) /3 -/ CLSA MATCHING FUNDS BUDGET FY 1997-98 November, 1997 BUDGET ACCOUNT: 216-2164 5201 Professional Services Computer Lab Coordinator Instructor/Tutor Mentor TOTAL: $21,600. $10,759 $32,359. ) 3-;2 ATTACHMENT A RESOLUTION NO. 1:/%3/ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING CALIFORNIA STATE LIBRARY MATCHING FUNDS AWARDED TO THE CHULA VISTA LITERACY TEAM, APPROPRIATING FUNDS, AND AMENDING FY 1997-98 BUDGET WHEREAS, in 1987 the California State Library grant Literacy Team; and library received to establish the a five-year Chula vista WHEREAS, the fifth and final year of this funding was FY '91-92; and WHEREAS, the California State Library has announced another one-year extension of California Library Services Act funding for programs which were awarded the original five-year grants; and WHEREAS, the FY '97-98 awards are based on a match of $1 for every $4.68 raised and spent locally during FY '97-98 which will provide $32,359 to the Chula vista Literacy Team. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby accept the California State Library matching funds awarded to the Chula Vista Literacy Team. BE IT FURTHER RESOLVED that the FY 1997-98 budget is hereby amended by appropriating $32,359 to Budget Account 216-2164 as set forth in Attachment A. Presented by Approved as to form by David Palmer, Library Director torney C:\rs\literacy.grt /3--3 COUNCIL AGENDA STATEMENT ITEM TITLE: ITEM / f MEETING DATE 12/09/97 Resolution /%2fc~~ng California Department of Education Adult Basic Education Section 321 grant funds awarded to the Chula Vista Literacy Team, appropriating funds, and amending FY 1997-98 budget to include a .14 FTE position. SUBMITTED BY: Library Directo~ / Ch~ REVIEWED BY: City Manage~CsJ. ~~te: YES ~ NO ~ The Chula Vista Public Library applied for calihlmia Department of Education ABE Section 321 funds for each ofFY 1996-97 and FY 1997-98. The primary purpose of these grant funds is to improve the quality and responsiveness of programs which enable adults to acquire basic literacy skills. The second year grant of $5,970 has been awarded to the Library. The award is divided into two parts. The base grant ($3,500) must be used for supplemental staff development, assessment, and/or networking. The remaining funds ($2,470) are calculated based on the number of learner attendance hours, and these may be used for staff development and/or other enhancements to program quality. RECOMMENDATION: That Council adopt the resolution accepting California Department of Education Adult Basic Edu,cation Section 321 grant funds awarded to the Chula Vista Literacy Team, appropriating funds, and amending FY 1997-98 budget to include a .14 FTE position. BOARD/COMMISSION RECOMMENDATION: On On January 24, 1996 the Library Board of Trustees voted to continue support for the Library's ABE Section 321 application. (ATTACHMENT A.) DISCUSSION: On June 11, 1996, Council ratified the Library's application for ABE 321 grant funds to be awarded over a two year period. (ATTACHMENT B.) The second year grant funds will be used to support conducting learner needs assessments and progress evaluations,! (a .14 FTE clerical aide) and to provide additional hours of supervision and training to volunteer tutors. FISCAL IMPACT: Accepting this grant will provide $5,970 to implement this program in FY '97-98 through the Chula Vista Literacy Team. The grant was approved for a two-year period, based upon submission of an annual continuation request. Funds cannot be used to supplant the current volunteer tutor program. These funds will be appropriated into fund 260- 2607 . (ATTACHMENT C). )1J- / ftlIP "- JJ [5 e.HM~ ~n f111f/ C~~ ~O't ~ RESOLUTION NO. /~tr~oZ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING CALIFORNIA DEPARTMENT OF EDUCATION ADULT BASIC EDUCATION SECTION 321 GRANT FUNDS AWARDED TO THE CHULA VISTA LITERACY TEAM, APPROPRIATING FUNDS, AND AMENDING FY 1997-98 BUDGET TO INCLUDE A .14 FTE POSITION WHEREAS, the Chu1a vista Public Library applied for California Department of Education ABE section 321 funds for each of FY 1996-97 and FY 1997-98; and WHEREAS, the primary purpose of these grant funds is to improve the quality and responsiveness of programs which enable adults to acquire basic literacy skills; and WHEREAS, the second year grant of $5,970 has been awarded to the Library and is divided into two parts: the base grant ($3,500) must be used for supplemental staff development, assessment, and/or networking and the remaining funds ($2,470) are calculated based on the number of learner attendance hours, and these may be used for staff development and/or other enhancements to program quality; and WHEREAS, on January 24, 1996, the Library Board of Trustees voted to continue to support the Library'S application for ABE section 321 grant funds. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista does hereby accept California Department of Education Adult Basic Education section 321 grant funds awarded to the Chu1a vista Literacy Team. BE IT FURTHER RESOLVED that the FY 1997-98 budget is amended to include a .14 FTE position and $5,970 is appropriated into Fund 260-2607 as set forth in Attachment C. Presented by Approved as to form by David Palmer, Library Director J~K~~. Attorney C:\rs\abe321.grt /1//,) ( ATIACHMENT A Library Board of Trustees - 3 - January 24, 1996 arena. The YMCA currently has a soccer arena on its Paseo Ranchero and Paseo Magda site, which serves between 1,200 to 1,400 children per year. The YMCA is planning to move the soccer arena to the library site while its new facility was being built, probably in early 1998. The library would ultimately benefit as its site would be improved and utilities brought in at no cost to the City. The City could then install a temporary facility to serve the Rancho del Rey community. YMCA staffis currently negotiating with the Sweetwater School District for joint use of their soccer fields at the middle school soon to be constructed. Director Palmer suggested that the Library Board support a two-year agreement with an option to renew for one year, wit~ a six month notice to vacate. . MSUC Donovan! Alexander) that the Library Board supports a two year agreement with the YMCA with an option to extend it for one year and a six month escape clause. ( ACTION C. Literacy ABE Section 321 Grant MSUC (Alexander/Donovan) that the Library Board supports the Literacy Team's application for ABE, Section 321 grant funds. (Trustee Viesca arrived at this time 3 :30 pm) ACTION A 1996-97 Budget Dawn Herring, City Budget Manager, reported to the Trustees that the City is transitioning to a more performance based budget. The budgets will be input on a new local area network-based system which will allow staff to use information in many different ways. The new system will also have the ability to evolve to future City needs. The City Manager has asked departments to prepare potential 10% budget cuts. Staff will go back to Council in February or March to get feedback on their priorities before the budget is finalized. (Trustee Williams arrived at this time 4:00 pm) Chair Clover-Byram asked if the City took into consideration revenue from new stores and businesses such as the new W.allmart. Mrs. Herring stated that the City Manager did indeed take this revenue into consideration. /'1 -3 ABE SECTION 321 FUNDS FY 1997-98 11/11/97 BUDGET ACCOUNT: 260-2607 5105 Hourly Wages $2,532. 5143 Medicare $37. 5145 PARS $96. 5201 Professional Services $3.305. TOTAL: $5,970. ) J/- -J ATTACHMENT C AITACBMENT B Minutt:s June II, 1996 Pag~ 3 ( requesting pennissioo to conduct a Fiestas Patrias special event on Sunday, Septemb<:r 15, 1996, in and around Bayside Park. As a co-spoasor of the event, lhe City is applying for a Tidelands Activity Pennit from the San Diego Unified Port District, which contains indemnitkation language. Staff recommends approval of the resolution. (Director of Parks and Recreation and Chief of Pulice) 9. RESOLUTION 18330 APPROVING THE RENEWAL OF THE AGREEMENT WITH THE SWEETWATER UNION mGH SCHOOL DISTRICT FOR JOINT USE OF THE LIBRARY FACILITY AT EASTLAKE HIGH SCHOOL - The original three-year agreement providing for the jointllS<O of the EastLake High Scbool Library will expire on 6/30/96. On 12119/95, Council directed Library staff to negotialtl a renewal of the joint use agreement with Scbool District staff. Staff recommends approval of the resolution. (Library Director) Counalmember Rindone abstained from participation in order to avoid a conflict of interest due to his employment by the Sweetwater Union High School District. 10. REPORT APPLICATION OF THE CHULA VISTA PUBLIC LIBRARY FOR CALIFORNIA DEPARTMENT OF EDUCATION, ADULT BASIC EDUCATION, SECTION 321 FUNDING FOR THE TWO-YEAR PERIOD FISCAL YEAR 1996/97 AND FISCAL YEAR 1997/98 THROUGH THE CHULA VISTA LITERACY TEAM - The Chula Vista Public Library bas applied for,$5,840 in California Department of Education, ABE Section 321 funds for fiscal years 1996/97 and 1997/98 (subject to availability of funds from the federal government). The funds will b<: US<Od to improve the quality and responsiveness of programs which enable adults to acquire basic literacy slcills. Staff reCommends Council accept the report and ratify the Library's application for California Department of Education Adult Basic Education, Section 321 funding. (Library Director) c · · END OF CONSENT CALENDAR. * PUBLIC HEARINGS AND RELATED RESOLUTIONS AND ORDINANCES II. PUBLIC HEARING CONSIDERATION OF COASTAL DEVELOPMENT PERMIT NUMBER 70 FOR CONSTRUCTION OF A 35-FOOT HIGH FREESTANDING SIGN AT THE BROADWAY ENTRY TO CHANNELSIDE SHOPPING CENTER The sign is exempt from the California Environmental Quality Act by a Class II (a) exemption. On 7125/94, the Design Review Committee reviewed and approved the sign with a maximum of five panels. The Coastal Commission approved a Local Coastal Program (LCP) amendment on 5n/96, to allow freestanding signs up to 35 feet in height within the Inland Parcel, Subarea 4 of the LCP. Staff recommends approval of the resolution. (Director of COllUDunity Development) RESOLUTION 18331 AUTHORIZING THE ISSUANCE OF COASTAL DEVELOPMENT PERMIT NUMBER 70 FOR A 35-FOOT HIGH FREESTANDING SIGN AT THE BROADWAY ENTRY TO CHANNELSIDE SHOPPING CENTER Councilmemb<:r A1evy stated he would abstain from participation in order to avoid a contlict of interest as Gallin was . client of bis firm. Councilmemb<:r Moot stated he would abstain from participation in order to avoid a conflict of interest as Gatlin was also . client of his linn. This being the time and place as advertised, the public hearing was declared open. 11>0:", being no public testimony. the public hearing was dclclared closed. RESOLUTION 18331 OFFERED BY COUNCILMEMBER RINDONE, r....dillll ofthe text was waived, passed and approved J~-2 with Alevy and Mout abslainillll. ORAL COMMUNICATIONS . Marie Sackett, 609 Mariposa Circle, Chula Visla, CA. was nol pre,",nt when called to lhe dais. /tj~1/ COUNCIL AGENDA STATEMENT Item: Meeting Date: 12/09/97 /~~ ITEM TITLE: Resolution /73"3 -1pproving the Park Master Plan for Rolling Hills Ranch Neighborhood Park () Director of Parks, Recreation, :ntf~en Spac~ City Manager~G::t ~ ~ \ (4/5ths Vote: Yes No X) SUBMITTED BY: REVIEWED BY: BACKGROUND: The neighborhood park at Rolling Hills Ranch is a 7.0 acre site located at Mt. Miguel Road and MacKenzie Creek Road. Rolling Hills Ranch (formerly Salt Creek Ranch) is in the eastern territories of the City of Chula Vista. Rolling Hills Ranch is a planned residential community with a focus on open space, trails and a park system. STAFF RECOMMENDATION: That the Council approve the Resolution approving the Park Master Plan (Attachment A) for the Rolling Hills Neighborhood Park. BOARD/COMMISSION RECOMMENDATION: On October 16, 1997, the Parks and Recreation Commission considered this item (Minutes - Attachment B) and unanimously endorsed the Park Master Plan. DISCUSSION: The Salt Creek Ranch (CY Tract No. 92-02) tentative map conditions required twenty-nine (29) acres of useable park land in the project. The tentative map established an improvement schedule for the construction of a twenty-two (22) acre community park and a seven (7) acre neighborhood park as follows: a. Twelve (12) acres of the community park completed one year after the recordation of the final map for the 592nd lot. b. The remaining acres of the community park completed one year after the recordation of the final map for the 1,44 7th lot. c. The seven (7) neighborhood parks to be completed one year after the recordation of the 2,200th lot. Construction of the Neighborhood Park in advance of the Community Park The Department and the Developer, Pacific Bay Homes, responding to concerns expressed by the adjacent Cabo and Chapala neighborhoods, regarding the absences of any park amenities in the Salt Creek I Development, negotiated an accelerated schedule for the partial construction of the neighborhood park. Moreover, the decision to commence construction of the neighborhood park in advance of the community park was also keyed into an amended phasing plan of homes. The original draft tentative map called for the initial phasing of homes to occur from east to west or next to the community park (off of Hunte [H:\Home\Parlcsrec\Alt3\ - rollhill.A13] 1 /--5' -- ) Item: Meeting Date: 12/09/97 Parkway and Proctor Valley Road). However, further revisions to the tentative map called for phasing to begin from west of the subdivision to eastern reach of their property. The latter revision to the tentative map was approved by Council in 1991. Since basic infrastructure (streets/sewers/utilities) will not extend to the community park until later phases of development, it makes logical sense to construct the neighborhood park first. Further, in the initial phase of development, homes will be built around the neighborhood park, thereby generating an immediate need for park services. Finally, from a customer service perspective, access to the neighborhood park will be far more convenient for residents because of its close proximity to their homes. The entire neighborhood park will be built in one phase. Pacific Bay Homes has deposited $5,357,860 with the City towards meeting their future PAD fee obligations for Rolling Hills Ranch. As such, they will not be paying PAD fees but receiving a credit against their deposit, or drawing down their deposit, based upon any turnkey park construction they may undertake in the future. In the event the City amends its Municipal Code to increase the development portion of its PAD fees prior to a recordation of a Final Map, and there is an insufficient balance remaining in the security deposit, Pacific Bay Homes shall be obligated to deposit additional funds with the City. Conceot Plan - The Rolling Hills Ranch neighborhood park concept plan is based on the rurallranch character of the residential community. The park concept was selected to create an identity for the neighborhood park as well as tie the park into a unified open space system. The overall concept for park development is based on the historic setting of the site, incorporating the feeling of the old ranchos into the park facilities and open space. Particular attention has been given to the grading design to create a unique park site. The park is divided into three terraces with a gradual slope around the exterior of the park to accentuate the grade changes, frame views, and create a gateway to the park. Activity areas are separated by low seat walls that define the terraces and provide informal seating. The ranchos had a simplicity of organization that provided for a central yard (open lawn area for play and picnics), with carefully detailed "rooms" and "patios" (play areas, shade structures and restroom/maintenance building) for activities along a main promenade. Materials and Plant Palette - Traditional materials are used in the park's design with heavy wood beams, corrugated metal, tile roofs and wood trellis structures. The landscape concept is based on California's historic rancho design and plant palette including Eucalyptus, Sycamore, California pepper, and Cottonwoods. A pedestrian path with a row of California pepper trees lines the main promenade. The smaller play area contains an orchard with flowering trees. A small garden provides an area for passive activities such as picnics. Park Program - Programming of the neighborhood park facilities was based on an analysis of the existing and proposed land uses/densities, the future school site, and the park sites in proximity to Rolling Hills Ranch. Both active and passive recreation is part of the park program. Tennis and basketball courts, as well as a large lawn area for open play, provide active recreation. Play areas with separate components for toddlers and adolescents include custom play equipment, swings and shade structures. Picnic areas, a large shade pavilion, and gardens with picnic tables and benches for reading and reposing, provide passive recreation with the main promenade connecting the adjacent elementary school property. [H:\Home\Parksrec\Al13\ - rollhill,A131 2 ~~~ c:( Item: Meeting Date: 12/09/97 The Department shared the park project with the Chula Vista Elementary School District to get their input. The District is very supportive of having the park adjacent to the school ground. They are anxious to discuss cooperative sharing of each agency's facilities. They feel the park design will provide a unique scholastic experience for the students. Safetv /Maintenance - Design of the neighborhood park meets the criteria set forth in the City of Chula Vista Landscape Manual and City standards. The open design, grading and arrangement of facilities was based on consideration of security surveillance and social activities of the park. Construction materials and play structures were selected for ease of maintenance and durability. The potential impact of a neighborhood park was analyzed in the Salt Creek Environmental Impact Report 91-3; therefore, the concept plan is in compliance. FISCAL IMPACT: Pacific Bay Home will construct the turn-key park, and provide for a one-year maintenance period at an estimated cost of $1.6 million. The developer will be reimbursed for approved expenditures from the PAD fees on deposit. The Department estimates ongoing yearly maintenance cost of $56,000. Attachments: A: B: Park Master Plan 1>'1> October 16, 1997 Minut~~fiecreation Commission (Excerpt) ~O't [H:\Home\Park.o;rel;\A113\ - rollhilI.A13] 3 /~3 RESOLUTION NO. ;'SV~~~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING THE PARK MASTER PLAN FOR ROLLING HILLS RANCH NEIGHBORHOOD PARK WHEREAS, the neighborhood park at Rolling Hills Ranch is a 7.0 acre site located at Mt. Miguel Road and MacKenzie Creek Road; and WHEREAS, Rolling Hills Ranch (formerly Salt Creek Ranch) is in the eastern territories of the City of Chula Vista; and WHEREAS, Rolling Hills Ranch is a planned residential community with a focus on open space, trails and a park system; and WHEREAS, design of the neighborhood park meets the criteria set forth in the City of Chula Vista Landscape Manual and city standards and is based on the rural/ranch character of the residential community; and WHEREAS, on October 16, 1997, the Parks and Recreation Commission unanimously endorsed the Park Master Plan; and WHEREAS, the Environmental Review Coordinator has determined that the potential impact of a neighborhood park was analyzed in the Salt Creek Environmental Impact Report 91-3 and the concept plan is in compliance and no further environmental review is required. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby find that the neighborhood park was analyzed in EIR No. 91-3 and does hereby approve the Park Master Plan for Rolling Hills Ranch Neighborhood Park as set forth in Attachment A. Presented by Approved as to form by Cl- ~~~ ~ John M. Kaheny, city ttorney Jess Valenzuela, Director of Parks, Recreation and Open Space C:\rs\rollhill.prk /5-1/ ~ ... > ... > .. c ~~ lO, ::):, ... ... . " i ~,^,~~'.' .1.1 l t' , . , ' ~- -'. .. ..\ . /5'--- 6 .. .. ... - - ~ u i l z " ~ 0 2 ~ . ! ~ ~ u ~ ~ , I , , .. " . , t , , , II: r ~ . i c . " ~ .. - ~-..-'r'-- -- . ATTACHMENT B EXCERPT CITY OF CHULA VISTA PARKS AND RECREATION COMMISSION MINUTES Thursday - 6:30 p.m. Conference Room 2&3 October 16, 1997 276 Fourth Avenue 6. New Business a. Rolling Hills (6.8 Acres - Salt Creek) Deputy Director Foncerrada presented a brief background history on the project and introduced Liz Jackson from Rolling Hills and Sue Peerson from Spurlock Porier, who were available to answer any questions. Ms. Peerson noted that the character of the park was much like a rural ranch setting. The materials used in the project were consistent with the City's Landscape Manual. Materials used included decomposed granite, wood for the benches, concrete picnic tables, split rail fences, stone walls, and jacaranda trees. In answer to questions from the Commission, Ms. Peerson explained that the stairs the Commission saw on the renderings were actually ramps and that nothing was greater than 5%; this met the ADA requirements. The grassy, open field will be used for active recreation such as baseball, picnicking, etc. The pathways that are on the far end and middle will be lined with shredded bark mulch. At this time there are no benches out on the Eucalyptus grove but there are benches in the garden under two wooden trellises. The overlook will look down on open space. Deputy Director Foncerrada said that they would like to have the Commission accept the plan. MSUC (Helton/Rude) to accept the character and plan of Rolling Hills Ranch neighborhood park. /5r? COUNCIL AGENDA STATEMENT Item / c} Meeting Date 12/9/97 ITEM TITLE: Public Hearing: Considering retaining the Calendar Year 1998 (CY98) Business License Tax rates at the current CY97 levels. J,fsr3Lj Resolution _: Abating the Business License Tax rates for CY98, holding CY98 tax rates at the current CY97 levels SUBMITTED BY: Director of Financer/ /' ~h^ REVIEWED BY: City Manager~ 'LJ ~~ (4/5ths Vote Yes_No.x) This public hearing is being conducted to discuss the advisability of abating the business license tax increase scheduled for CY98. On October 25, 1990 the City Council passed Ordinance 2408 which adopted increased business license tax rates which were to be phased in from 1991-1993, with annual increases of 6% to occur in subsequent years, beginning in 1994. Ordinance 2408 also provided Council with the ability to abate the scheduled business license tax increase during any year, for a one year period only, to any level chosen as long as the tax rates did not fall below the 1991 level. Due to the economic downturn in the past years, the City Council has abated all scheduled tax increases since 1991. Thus the current tax rate for the majority of businesses has remained at the CY9l tax levels. Since revenue estimates in the current FY98 budget are based on retaining the current tax rates, abating the CY98 tax to keep taxes at the same level would not negatively affect this year's budget. If local economic conditions continue to improve, staff may return to Council with a report prior to adoption of next year's budget with various options to phase in the tax rate increases which have been abated since 1991. Notification of the public hearing and copies of this report were sent to the Chamber of Commerce, the Broadway Business Association, the Downtown Business Association and the Bonita Professional Association. RECOMMENDATION: That Council: I. Conduct the public hearing. 2. Adopt Resolution _ to abate the scheduled CY98 business license tax increase to retain taxes in CY98 at their current level. BOARDS/COMMISSIONS RECOMMENDATION: N/A /~// Page 2 Item Meeting Date 12/9/97 DISCUSSION: Tax History and Qptions for CY98 Abatement On October 25, 1990, the City Council adopted Ordinance 2408, approving a business license tax increase. The new tax rates were to be phased in over a three year period (50% of the increase scheduled for 1991, and 25% of the increase scheduled in 1992 and 1993 respectively), with 6 % increases in subsequent years to account for inflation. This schedule was adopted to provide businesses with the flat rate/per employee tax structure they requested, while at the same time ensuring that tax rates were not eroded in the future due to inflation, necessitating large future adjustments. To allow maximum flexibility Ordinance 2408 also provides Council with the ability to conduct a public hearing and abate all or a portion of the tax rate for a one year period, to no less than the CY9l tax rate. If Council does not abate the tax in any given year, the taxes for all business will automatically be increased to the level specified in the Master Tax Schedule for that calendar year. In 1991 the first year of the tax increase went into effect. However, shortly thereafter the economy experienced a substantial downturn. Council abated the scheduled tax increases in CY92-CY97, in response to the continued economic recession and concerns expressed by local businesses. These abatements were needed to adjust the flat tax rates in response to the recessionary period. If flat tax rates are not adjusted accordingly, the relative tax burden on a business will be highest during poor economic times and lowest during prosperous times. Since the taxes have been held constant for six years through abatements, taxes would more than double for the majority of businesses if Council does not partially or entirely abate the scheduled CY98 tax increase via resolution. Fortunately it appears that the local economy is sustaining a steady recovery. In FY97 the number of new businesses licensed increased 8.5 % over the previous fiscal year. Most reports on the local economic outlook are positive. With the economy in the early stages of recovery, now may not be the best time to allow the business license tax to increase. However, at some point in the near future tax rates will have to be adjusted upwards if the economy continues to improve and there is a desire to maintain an equivalent level of tax support for the City services provided. Since 1991, when the last tax adjustment occurred, the San Diego Consumer Price Index has increased by over 16%. Chula Vista tax rates are still at the low end of the spectrum County-wide (Table 1) and will continue to provide less revenue relative to other sources if they are not adjusted periodically. Staff intends to provide Council with options for adjusting this tax based on local economic conditions and Council policy direction during next year's budget process. However, if Council chooses to set business license taxes at a higher level than recommended, some alternatives are presented for consideration on Table 2 which is discussed later in this report. J~-2 Page 3 Item Meeting Date 12/9/97 Comparison of Chula Vista Tax Rates with Other County Cities It is very difficult to compare business license rates among various cities due to the different tax structures. Most cities throughout the state and many cities in the County have tax structures based on gross receipts. Within these tax structures, the percentage of tax often varies by business type - those business types with higher profit margins generally pay a higher percentage of tax. For example, professionals have a higher tax rate than retail businesses which pay a higher rate than manufacturers. Cities not using gross receipts tax rates also use different types of tax structures (e.g., flat, flat based on receipts, flat plus per employee increment). For most businesses Chula Vista charges a flat tax plus a per employee increment (which varies by business type). Chula Vista also offers a lower rate for first year small businesses. San Diego offers a flat tax for businesses with 12 or fewer employees but a flat tax with a per employee increment for larger companies. Due to these variations in tax structure and rates within tax structures, how much tax a business pays in each City will vary by the characteristics of the business. For some businesses Chula Vista's rate may be the lowest where for others it would be at the mid-point. For example, Chula Vista's first year tax rate on small businesses is the lowest in the County, for existing small businesses and professionals it is a little below average and for large manufacturer's it is one of the lowest. Since it is difficult to compare the many nuances, Table I provides a comparison of the annual taxes three typical businesses would pay in the different cities within the County. The Table also provides the percentage of General Fund revenues which are derived from business license taxes in each of these cities. As the Table shows, Chula Vista's revenues from business license taxes are lower than most cities in the County. A major impetus in changing the business license tax rates in 1991, was this low ratio, which will continue to decrease because the flat tax does not grow with inflation. Alternatives If Council does not wish to abate the tax to the current tax level (CY91 rates), the tax can be set at any rate between the current CY91 tax rates and the scheduled CY98 tax rates. Table II, presents four additional alternatives and the impact adoption of a particular alternative would have on some typical businesses as well as General Fund revenue. The median County tax rates for these business types is also shown for comparison purposes. The following alternatives are presented: A lternati ve # 1 . Retain the current tax rate (which is the CY91 base tax rate which has remained in effect for the vast majority of businesses from January 1991 until now). City revenues would remain unchanged at $740,000 annually. Alternative #2: Increase the current tax rate (the CY91 base tax rate) by 10%. City /i~ /3 Page 4 Item Meeting Date 12/9/97 revenue would increase $74,000 annually. Alternative #3' Increase the current tax rate (the CY91 base tax rate) by the cumulative increase in the San Diego CPI for 1991 through 1997, or 16%. City revenue would increase $118,000 annually. Alternative #4' Replace the current tax rate (CY9l base tax rate) with the scheduled 1992 base tax rate (Phase II of the three-phase increase-approximately 50%). City revenue would increase $370,000 annually. Alternative #5' Replace the current tax rate (CY9l base tax rate) with the scheduled CY98 base tax rate (Includes all three phases plus annual escalators of 6%). City revenue would increase $1,124,800 annually. FISCAL IMPACT: The $740,000 of business license tax revenue estimated in the current FY98 budget is based on abating the CY98 tax rates to keep taxes at their current level. If the City Council decides not to abate the tax, or only abate a portion of the tax, the City's General Fund revenue for this fiscal year would increase. Each five percent increase to current tax levels would result in approximately $37,000 of additional General Fund Revenue annually. Each five percent increase would cost an average business (four employees) $3.92 more annually and each professional an additional $5.25 annually. Fiscal impacts of some other potential alternatives are shown on Table 2. Since all of the City's business licenses are renewable in January, any decision to abate the tax for CY98 will only impact the current year's budget. Next fiscal year's revenues will be determined by the CY99 tax rate. o L ~~V' 1/1 SC~,. ~O~ JIr~i RESOLUTION NO. ) 3':539 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ABATING THE BUSINESS LICENSE TAX RATES FOR CALENDAR YEAR 1998, HOLDING CY 1998 TAX RATES AT THE CURRENT CY 1997 LEVELS WHEREAS, the Business License Tax ordinance (effective January 1, 1991) provides that the City Council may abate, for a one year period, the scheduled business licese tax increase to any level chosen as long as the tax rates do not fall below the 1991 level; and WHEREAS, the business license taxes will more than double for the vast majority of businesses on January 1, 1998 unless Council passes a resolution to abate them to a lower level; and WHEREAS, tax rates have remained the same since 1991 due to annual abatements; and WHEREAS, revenue estimates in the current budget were based on current tax rates and abating the CY 1998 tax rates to retain the current tax rate would not affect this year's budgeted revenue, nor would it impact next year's budget; and WHEREAS, notification of the public hearing were sent to the Chamber of Commerce, the Broadway Business Association, the Downtown Business Association and the Bonita Business and Professional Association; and discuss increase WHEREAS, a public hearing was held the advisability of abating the scheduled for Calendar Year 1998. on December 9, 1997 to business license tax NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Chula vista does hereby abate the Business License Tax rates for Calendar Year 1998, holding CY 1998 tax rates at the CY 1997 levels. 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"Z '-' .... ro.w ~ " u . /6 ~? TABLE 2 COUNCIL AGENDA STATEMENT Item / 7 Meeting Date 12/09/97 REVIEWED BY: PUBLIC HEARING: TO NOTICE USE OF FY 97/98 COPS FUNDING PER CITIZENS' OPTION FOR PUBLIC SAFETY FOR LOCAL LAW ENFORCEMENT SERVICES. /J. RESOLUTION 18'b':':?5 ACCEPTING $359,028.58 FOR LOCAL LAW ENFORCEMENT FROM THE STATE BUDGET TO PAY FOR POLICE PERSONNEL ($108,000) AND RELATED EQUIPMENT ($251,028.58). .8/ RESOLUTION j8"8'3'4UTHORIZING THE CHIEF OF POLICE TO UTILIZE (REPROGRAM) SAVINGS RESULTING FROM THE EQUIPMENT PROCUREMENT PROCESS FOR ADDITIONAL UNSPECIFIED OFFICER SAFETY EQUIPMENT AND SUPPLIES. Chief of POliC~~..\,~ /n. I City Manage~~ ~ ~ (4/5ths Vote: Yes.1L No_l ITEM TITLE: SUBMITTED BY: The FY 97-98 state budget was adopted appropriating $359,028.58 to the City of Chula Vista Police Department as a result of Assembly Bill 3229, Brulte. This bill allocates state money to police departments for purposes stipulated by the Citizens Option for Public Safety (COPS) Program. RECOMMENDATION: 1) That Council hold a public hearing to notice use of COPS funding to pay for "front line police services"; 21 that Council adopt the Resolution accepting $359,028.58 from the state budget for Police personnel ($108,000) and related equipment ($251,028.58); and 3) that Council authorize the Chief of Police to reprogram savings resulting from the equipment procurement process for additional officer safety equipment and resources. BOARDS/COMMISSIONS RECOMMENDATION: The state appropriation requires a Regional Oversight Committee's approval of the funds prior to disbursement. In response, an Oversight Committee was established in San Diego County. The Committee recommends approval of the state local law enforcement funds as proposed. The San Diego County Oversight Committee is comprised as follows: Municipal Police Chief - County Sheriff - District Attorney - County Administrative Office - City Manager - Richard P. Emerson William Kolender Paul Pfingst Lawrence Prior III James Bowersox, Poway /7// Page 2, Item _ Meeting Date 12/09/97 BACKGROUND: During FY 96/97 the state appropriated funds for Local Law Enforcement services per AB 3229, Chapter 134 statutes of 1996. In accordance with this legislation, the State has once again appropriated funds to local law enforcement agencies. The City of Chula Vista's proportionate share of these funds is $359,028.58. These funds are to be deposited in the City's Supplemental Law Enforcement Fund (SLESF) and used for front line law enforcement personnel and equipment needs as prescribed by AB 3229. Use of these funds must supplement and not supplant. These funds have a twenty-five (25%) percent in-kind contribution requirement. In kind funds will be staff's time associated with installation of communication line, Arjis computer ports, and training of Universal Hire officers. The allocation of future funds is subject to State budget deliberations. DISCUSSION: The Police Department recommends that the City Council accept the state allocation and approve use of the funds for personnel and equipment costs related to the expansion of the "front line police services" as stipulated by the Citizens' Option for Public Safety (COPS) Program. . Universal Hire Officer Salaries - $108,000 The Police Department is recommending use of a portion of the state appropriation to offset the General Fund share of second year officer salaries hired under the Universal Hire Program $108,000. In FY 96/97, six officers were hired under the Universal Hire Program. The first year salaries were paid for by last year's state appropriation and the Universal Hire Program. This year's state appropriation authorizes agencies to continue to use state funds to offset the cost of officers hired under the Universal Hire Program. It is anticipated these funds will continue through next year. . Lab overtime for property update - $10,000 The department is currently in need of additional space. In an effort to create the necessary space for proper property and evidence storage, the department is proposing to pay experienced staff overtime to complete the property purge. This is the most cost effective interim solution to provide immediate improvements in overall control and accountability of the property room operation. . Local match for the new Local Law Enforcement Block Grants - $26,950 The 1997-98 LLEBG grants has a ten (10%) percent $26,950 local match requirement. As in the previous year, staff is recommending the local match requirement be paid for by the state appropriation. A total of $269,518 was awarded to the department from the Bureau of Justice Assistance (BJA). These funds were allocated to the Police Department based on a three-year average Part I Violent Crimes. The Police Department is proposing to use the local match requirement to purchase new helmets and officer safety equipment. Currently there is an insufficient number of helmets and related safety equipment to outfit police personnel. The existing helmets are old and in many cases in need of repair. These funds would allow the department to purchase helmets and related safety equipment needed for front line law enforcement services. . Communication - $25,000 and $7,000 Arjis Ports As part of the FY 97-98 LLEBG grant allocation staff is proposing purchase of a live-scan laser fingerprint system which replaces the process of manually obtaining and transmitting inked fingerprint cards. This new /7-2 Page 3, Item _ Meeting Date 12/09/97 system will require the installation of new communication lines to access state and local data bases. The cost of these lines is $14,000. As part of the computer automated dispatch (CADI and mobile computer terminals (MCT) project, ARJIS and SUN connecting will be expanded. ARJIS currently charges a joint powers authority (JPAI fee which is relatively constant, a per device annual service charge of $728 and a flat rate of .05 per transaction. The department currently has 28 active nodes which cost $20,384 annually. Transaction and JPA fees bring us to an annual budget of $147,000 for our present system. As part of PS 115, the CAD/MCT project, the department's number of ARJIS nodes will increase from 28 to 37 nodes which will increase our base ARJIS costs by approximately $7,000. In addition, increased use of high speed T-1 data lines for both ARJIS, SUN and MCT transactions will result in a cost of $11,000 for new data communication lines associated with the new CAD/MCT system. . Equipment Procurement - $124,628.58 The following one-time equipment purchases are proposed to be funded by the state appropriation: Lanier Dictation - $7,200 The department is proposing purchase of two Lanier Transcription/Dictation systems to be used by Police Administration and the Internal Affairs Unit. Currently staff is using a variety of hand-held recorders or written format which are difficult to transcribe from. Purchase of this system will enhance staff's ability to handle day to day operations more efficiently and save time. Two Presentation Systems - $20,000 The department is proposing purchase of two presentation systems in an effort to present information to Council, schools, the community and other agencies in a more professional manner. As Council may recall during Council's animal shelter deliberations, the department borrowed equipment from various sources in order to be able to present the information to Council in a professional and comparable format to the County. Duty Weapons - $60,000 The department is proposing to purchase new duty weapons for all law enforcement personnel. This will eliminate the need for officers to use personal guns and provide standardization throughout the department. Body Armor - $20,000 The department is proposing purchase of body armor for law enforcement personnel. New vests would enhance officer safety. Policy & Procedures Manual - $17,378.58 The department's existing Policy & Procedure Manual is in need of update and revision. These funds will be used to update the manual and for printing and binding costs associated with providing each Police Department employee with a copy of the manual. 17~J Page 4, Item _ Meeting Date 12/09/97 . Community Outreach & Strategic Planning - $50,000 These funds are proposed to be used to address an area of concern as a result of the recently conducted community survey. The results of the survey indicates that community awareness of the programs offered by the Police Department can be significantly improved. As a result the Police Department is proposing to use these funds for community outreach and long range planning of service provision. San Diego State University (SDSUI Dean of the Department of Management and Associate Graduate School of Business will assist the department with this project. . Narcotics canine - $7,500 The department is proposing purchase of a narcotics canine and associated training. This will enhance the department's ability to detect narcotic substances and apprehend criminals. FISCAL IMPACT: Acceptance of the funds would make $359,028.58 available for local law enforcement needs (described above). These funds are proposed to be used to offset the second year's cost of officers hired under the Universal Hire Program, meet the local match requirement for the 1997/98 Local Law Enforcement Block Grant, community outreach and strategic planning and one-time equipment purchases. These funds have a 25% in-kind contribution requirement. Consistent with grant requirements, the funds are recommended to be used to supplement local law enforcement and not supplant. (iq) C:\wp51\scs\a113s\copsfund.113 [December 3, 1997 (2:58pm)] ) 7-zj NEW 1997 STATE APPROPRIATION $359,029 Revised 11-10.97 FY 97-98 GRANT PROPOSAL Live Scan Laser Fingerprint $46,350 NEW 1997 LLEBG $269,518 Patrol Overtime $80,000 LLEBG Local Match $26,950 Helmets & Officer Safety Equip. Universal Hire 2nd year GF Share $108,000 Body Armor & Duty Weapons $80,000 J7/~ ~u?- ~ ~~~~ CllY OF CHULA VISTA OFFICE OF THE CITY CLERK TELEFAX COVER LEITER Telecopier No. (q19) 585-5612 DAlE: )/);:I!<J :/ / / TO: Star News LeS!all Joann FAX NO: (619) 426-6346 FROM: Carla J. Griffin SUBJECT:_ W~' <<~ PUBUCATION DAlE: c2 __ J~/;ZY(/) TOTAL NO. PAGES (including cover): If all pages are not received, please call Carla @ (619) 691-5041. /7<1-/6 276 FOURTH AVE/CHULA VISTA, CALIFORNIA 91910/(619) 691-50c1 NOTICE OF PUBLIC HEARINGS BY THE CHULA VISTA CITY COUNCIL CHULA VISTA, CALIFORNIA NOTICE IS HEREBY GIVEN THAT THE CHULA VISTA CITY COUNCIL will hold the public hearings to consider the following: . Accepting $269,518 from the 1997 Local Law Enforcement Block Grant and appropriating such funds for the following purposes: $10,000 drug court, $149,518 in overtime, and $110,000 for equipment procurement. . Notice use of fiscal year 1997/98 Citizens Option for Public Safety (COPS) funding for local law enforcement services and accepting $359,028.58 for local law enforcement from the State budget to pay for Police personnel ($108,000) and related equipment ($251,028.58). For further information call Iracsema Quilantan in the Police Department at 691-5150. Any petitions to be submitted to the City Council must be received by the City Clerk's office no later than noon of the hearing date. If you wish to challenge the City's action on these matters 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 HEARINGS WILL BE HELD BY THE CITY COUNCIL on Tuesday, December 9, 1997, 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: November 14, 1997 RESOLUTION NO. ;'~~:?~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $359,028.58 FOR LOCAL LAW ENFORCEMENT FROM THE STATE BUDGET TO PAY FOR POLICE PERSONNEL ($108,000) AND RELATED EQUIPMENT ($251,028.58) WHEREAS, the FY 97-98 budget was adopted appropriating $359,028.58 to the City of Chula vista Police Department as a result of Assembly Bill 3229, Brulte; and WHEREAS, said bill allocates state money to police departments for purposes stipulated by the citizens Option for Public Safety (COPS) Program; and WHEREAS, the City Council held a public hearing on December 9, 1997 to notice use of COPS funding to pay for "front line police services", NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula vista does hereby accept $359,028.58 for Local Law Enforcement from the State Budget to pay for Police Personnel ($108,000) and related equipment ($251,028.58). Presented by Approved as to form by Richard P. Emerson, Chief of Police / 7A - ) RESOLUTION NO. ;I~~~~ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CHIEF OF POLICE TO UTILIZE (REPROGRAM) SAVINGS RESULTING FROM THE COMPETITIVE PROCUREMENT PROCESS FOR ADDITIONAL UNSPECIFIED SAFETY EQUIPMENT AND SUPPLIES WHEREAS, if savings result from the competitive procurement process for the 1997 Local Law Enforcement Block Grant, it is recommended that the Chief of Police be authorized to utilize savings for additional unspecified officer safety equipment and supplies. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby authorize the Chief of Police to utilize (reprogram) savings resulting from the competitive procurement process for additional unspecified safety equipment and supplies. Presented by Approved as to form by torney Richard P. Emerson, Chief of Police C:\rs\11ebg /m~ COUNCIL AGENDA STATEMENT Item Meeting Date 12\09\97 Jg' REVIEWED BY: PUBLIC HEARING: TO NOTICE ACCEPTANCE AND APPROPRIATION OF LOCAL LAW ENFORCEMENT BLOCK GRANT FUNDS. A. RESOLUTION Jg-~lc?PTING $269,518 FROM THE 1997 LOCAL LAW ENFORCEMENT BLOCK GRANT AND APPROPRIATING SUCH FUNDS FOR THE FOLLOWING PURPOSES: $10,000 DRUG COURT, $149,518 IN OVERTIME, AND $110,000 FOR EQUIPMENT PROCUREMENT. [J. RESOLUTION J fft"'Y ~THORIZING THE CHIEF OF POLICE TO UTILIZE (REPROGRAM) SAVINGS RESULTING FROM THE COMPETITIVE PROCUREMENT PROCESS FOR ADDITIONAL UNSPECIFIED OFFICER SAFETY EQUIPMENT AND SUPPLIES. Chief of POliC~.:~\'E- /\lll C;'V M'M'" JG ~ ~ J (4/5ths Vote: Yes..x. No_l ITEM TITLE: SUBMITTED BY: The Police Department has recently received notice of a 1997 Local Law Enforcement Block Grant (LLEBG) Award in the amount of $269,518 from the Bureau of Justice Assistance (BJA). These funds were allocated to the Police Department based on a three-year average Part 1 Violent Crimes. Part 1 Violent Crimes are murder and non-negligent manslaughters, forcible rape, robbery, and aggravated assault as reported by the FBI. Acceptance and appropriation of these funds requires a public hearing per stipulations of the Local Law Enforcement Block Grant. RECOMMENDATION: That the Council accept the $269,518 in Local Law Enforcement Block Grant funds and amend the FY 97-98 budget as follows: 1. Appropriate $10,000 from the Local Law Enforcement Block Grant to fund a drug court for the South Bay. 2. Appropriate $80,000 from the Local Law Enforcement Block Grant for patrol and $69,518 for investigative overtime. 3. Appropriate $110,000 from the Local Law Enforcement Block Grant for equipment procurement. BOARDS/COMMISSIONS RECOMMENDATION: The Local Law Enforcement Block Grant requires a local advisory board approval of the use of funds prior to disbursement. A local advisory board consisting of the specific composition required by the grant was set up to review the grant application. The local advisory board recommends approval of the Local Law Enforcement Block Grant disbursements as proposed. The local advisory board is comprised of one representative from the following agencies: Local Law Enforcement Agency - Prosecutor's Office - Court System - School System - Non Profit - Rick Emerson, CVPD Pete Deddeh Judge Jesus Rodriguez Lowell Billings Pam Smith /%~I Page 2, Item _ Meeting Date 12\09\97 BACKGROUND: The Omnibus Fiscal Year 1997 Appropriation Act, Public Law 104-208 provides for funding under the Local Law Enforcement Block Grant Program, established within the Bureau of Justice Assistance (BJA) to local law enforcement agencies. The City of Chula Vista is eligible to receive an award of $269,518 under this program. Funding may be used for seven purpose areas, which address a wide variety of activities from increasing personnel and equipment resources for local law enforcement to developing and supporting programs to enhance effective criminal justice processes. The program's goal is to provide local jurisdictions with opportunities to reduce crime and improve public safety through the implementation of diverse strategy, hiring, training of additional local law enforcement officers, paying overtime, procuring equipment and establishing or supporting drug courts. Grant Reauirements The $269,518 grant allocation has a 10% I $26,900) local match requirement. Staff is recommending the local match be appropriated from the new State appropriation for local law enforcement. The LLEBG funds must supplement and not supplant. The funds must be used to reduce crime and improve public safety through activities such as hiring, training, and employing new local law enforcement officers and support staff as well as procuring equipment, and technological advances directly associated with local law enforcement. DISCUSSION: The Police Department and advisory board recommend use of the funds in the following manner: Local Law Enforcement Support - $149.518 . Appropriate $80,000 for additional patrol overtime and $69,518 for additional investigative overtime. These funds are necessary to offset overtime expenditures necessary for minimum coverage due to high turnover as a result of retirements, injuries and computer automated dispatch (CAD) and mobile data computer (MDC) training. Eauipment Procurement - $110.000 Appropriate $110,000 for procuring equipment, additional technological advances related to basic local law enforcement functions. . Live-Scan Finger Print System, $45,000 Live-Scan replaces the process of manually obtaining and transmitting inked fingerprint cards. The benefit of Live-Scan includes: substantial reduction in the imperfections and flaws which commonly occur in traditionally rolled inked fingerprint cards, significant improvement of fingerprint database quality and identification accuracy, immediate transmission of fingerprint cards, resulting in faster identification of criminals. /??;L Page 3, Item _ Meeting Date 12\09\97 . Evidence Tracking System & Inventory System, $23,650 The new evidence tracking system will bring many necessary improvements to the operation and management of the property department. Some are listed below: no longer hostage to a system with no maintenance or upgrade potential, new system will comply with the unique operational flow and security requirements of Chula Vista Police Department, ability to instantly know what is in any location of the property facility, inventory reports will show what should be in property location and what is missing, custom reports capability, easy modification of evidence and property information, high security level, state of the art bar-coding, monthly audit by quantity and category, custom property release forms, custom officer disposition requests, maintains firearms, currency, and narcotics disposal lists. . Audio Equipment and Programmable VCR's, $5,000 - This equipment will be used in cooperation with the City's Information Office in order to better capture news stories that involve City activities. This equipment will provide the department and City with the capability of hooking up several VCRs to the same television and recording all the news stations that broadcast the news at different hours of the day. Additionally, this equipment will be used for recording and dubbing training programs. The department currently has satellite capability that this equipment will allow for recording of numerous informational teleconferences and programs broadcast on law enforcement topics that are excellent training tools. This audio equipment will also enhance the department's ability to take and archive tapes as evidence in a crime as well as dub them for court and investigation purposes. For example, in child abuse and sex crimes cases, Children's Hospital records their interview with the child and it would benefit our investigation to be able to dub that tape. . Microcassette Recorders, $15,518 - Purchase of microcassette recorders would transition the department to smaller and better quality recorders. The small hand held recorders patrol officers and investigators to carry them easily to facilitate recording of conversations with persons they may come in contact with on their investigations. In addition, these devices will be used to dictate reports to be transcribed by transcriptionists. The type of recorders used now are larger and more difficult to carry when in the field. Additionally, tape storage requires more space as opposed to the microcassette recorders and the old recorders run on batteries and are not rechargeable which are more costly to operate. Included in the purchase will be transcription adapters so that our present machines will be able to handle the smaller microcassettes. } fY- 3 Page 4, Item _ Meeting Date 12\09\97 . Automation, $4,300 - These funds will allow the department to update software. Many of our existing software programs are in need of an update. . Skel1y Recorder, $700 - Purchase of this equipment will enhance the department's recordings and result in clear and concise documents. The department currently uses hand-held recorders which are difficult to transcribe from and require frequent changing of tapes, thus, disrupting skelly hearings. . Spike Strips, $3,900 - The department is requesting purchase of spike strip systems to be placed in 9 units as a vehicle stopping device. These spike strips would increase the department's efficiency in pursuits. We currently have no vehicle stopping technology to handle a pursuit situation. The systems are recommended by the Pursuit Management Task Force. . Homicide (Cold Case) Follow-up, $11,100 - The department has a need to review prior years' homicide cases that remain unsolved. This allocation will fund hourly costs associated with additional investigation on these cases. DruQ Courts Staff is recommending the appropriation of $10,000 for the purpose of establishing a Drug Court in the South Bay. This program provides intense follow-up monitoring and assistance to those who qualify for other than standard incarceration. The program exists in other parts of the County and is being implemented in South Bay as well. Monies would be used for those arrestees from our City who qualify for this highly structured program. Success rates in other programs indicate that this has a positive vane to our community. FISCAL IMPACT: Patrol Overtime Staff is treating this as a one-year block grant allocation. Therefore, the $80,000 appropriation to patrol overtime and $69,518 to Investigative overtime will be used in this fiscal year to offset increased overtime as a result of turnover and injuries. Upon exhaustion of these funds, the Patrol and Investigative overtime accounts will return to their original budgeted levels. Necessary future increases will be requested during the FY 98-99 budget deliberations. In the interim, the Police Department is working on filling vacancies and will continue to explore other avenues to minimize the impact of overtime to the General Fund. Equipment Procurement The $110,000 allocation for equipment procurement will be used for one-time equipment purchases. There are no reoccurring costs proposed as a result of procurement of equipment. DruQ Courts This is a one-time allocation for the creation of a South Bay Drug Court. (iq) C:\wp51\scs\a113s\97I1ebg.113 [November 18,1997 (12:52pm)J /!{-tj NEW 1997 STATE APPROPRIATION $359,029 Revised 11-10-97 FY 97-98 GRANT PROPOSAL Live Scan Laser Fingerprint $46,350 NEW 1997 LLEBG $269,518 Patrol Overtime $80,000 Investigation's Overtime $69,518 LLEBG Local Match $26,950 Helmets & Officer Safety Equip. Universal Hire 2nd year GF Share $108,000 Body Armor & Duty Weapons $80,000 /S~3 RESOLUTION NO. /3'8'3? RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA ACCEPTING $269,518 FROM THE 1997 LOCAL LAW ENFORCEMENT BLOCK GRANT AND APPROPRIATING SUCH FUNDS FOR THE FOLLOWING PURPOSES: $10,000 DRUG COURT, $149,518 IN OVERTIME, AND $110,000 FOR EQUIPMENT PROCUREMENT WHEREAS, the police Department has recently received notice of a 1997 Local Law Enforcement Block Grant (LLEBG) Award in the amount of $269,518 from the Bureau of Justice Assistance (BJA); and WHEREAS, these funds were allocated to the Police Department based on a three-year average Part 1 Violent Crimes such as murder and non-negligent manslaughters, forcible rape, robbery, and aggravated assault as reported by the FBI; and WHEREAS, acceptance and appropriation requires a public hearing per stipulations of Enforcement Block Grant. of these funds the Local Law NOW, THEREFORE, BE IT RESOLVED the city Council of the City of Chula vista does hereby accept $269,518 from the 1997 Local Law Enforcement Block Grant and appropriating such funds for the following purposes: $10,000 Drug Court for the South Bay, $80,000 for patrol and $69,518 for investigative overtime and $110,000 for equipment procurement. Presented by Approved as to form by Richard P. Emerson, Chief of police ;%/9-') RESOLUTION NO. J ~ 'if.3 ?' RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AUTHORIZING THE CHIEF OF POLICE TO UTILIZE (REPROGRAM) SAVINGS RESULTING FROM THE COMPETITIVE PROCUREMENT PROCESS FOR ADDITIONAL UNSPECIFIED SAFETY EQUIPMENT AND SUPPLIES WHEREAS, if savings result from the competitive procurement process for the 1997 Local Law Enforcement Block Grant, it is recommended that the Chief of Police be authorized to utilize savings for additional unspecified officer safety equipment and supplies. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby authorize the Chief of Police to utilize (reprogram) savings resulting from the competitive procurement process for additional unspecified safety equipment and supplies. Presented by Approved as to form by Richard P. Emerson, Chief of Police ~ Ie;: Kaheny, City C:\rs\llebg JgJ B~ / ~If~ ~ ~~~~ ellY OF (HUlA VISTA OFFICE OF mE CITY CLERK TELEFAX COVER LETTER Telecopier No. (619) 585-5612 DATE: / / //9/7/) / I TO: star News Leoal I Chrissv FAX NO: (619) 426-6346 FROM: Carla J. Griffin SUBJECT: rZ-K~. ~~ PUBLICATION DATE: //;6:2./'17 / / y 3 ///.2.9/17 / / TOTAL NO. PAGES (including cover): If all pages are not received, please call Carla @ (619) 691-5041. /9 - 276 FOURTH AVENUE' CHULA VISTA' CALIFORNIA 91910 . (619) 69'-5041 ~ PaJ..:-.n.~,,- NOTICE OF PUBLIC HEARINGS BY THE CHULA VISTA CITY COUNCIL CHULA VISTA, CALIFORNIA NOTICE IS HEREBY GIVEN THAT THE CHULA VISTA CITY COUNCIL will hold the public hearings to consider the following: .. A proposed agreement to grant a modified cable system franchise to CoxCom Inc., a Delaware corporation, dba Cox Communications San Diego Ordinance amending the franchise agreement with Cox Communications, adopting a franchise fee of 5%, extending the franchise an additional ten years through the year 2020, and making various other changes in terms and conditions. (First reading) Ordinance amending Section 5.52.010 of the Municipal Code to conform the fees assessable to cable franchisees and other video programming providers to those allowed by state and federal law and making other technical changes. The Ordinance modifying the franchise will only be considered on December 9, 1997, if the City Council adopts on November 25, 1997, a Resolution of Intention to adopt same and formally sets the public hearing date. The terms and conditions of the modified franchise are proposed to include: Increasing the franchise fee from 3% to 5%, extending the term by 10 years, providing the city with the hardware and software necessalY to implement an additional phase of the Smart Community program, providing ten cable modems for city facilities (e.g. libraries, recreation centers), providing a PEG (Public, Educational, Governmental) grant of $100,000, specifying the distances, development densities or timing within which it is expected that service will be provided at no significant cost, requiring a system and services review in the year 2006, specifying the circumstances under which additional services available elsewhere in the County would be made available to Chula Vista subscribers, providing for good faith negotiation of future technology linkages or other issues of mutual interest, providing the city with playback equipment for the broadcast of City Council meetings, specifying minimum customer service standards and liquidated damages if they are not met, providing for subscriber notification of options to block audio/visual transmissions of unwanted programming, amending text regarding renegotiation intervals, amending termination provisions and disposition of the franchise property in such case, amending text regarding rate regulation authority, providing that there shall be no offset or credit on the franchise fee, setting the limitations of the grant of franchise and right reserve to city, specifying the location of franchise properties and the standards for their construction or maintenance or relocation, amending insurance and liability provisions, amending text regarding inspection of property and records, providing for resolution of issues in conflict or held to be invalid, making representations and warranties as to the franchise, agreeing to provisions of force majeure and time being of the essence, and clarifying existing definitions and administrative provisions. .. Existing and proposed rates and charges for Cox Communications' Basic Service Tier and associated equipment and Cable Programming Services Tier, as submitted by Cox Communications to the City via Federal Communications Commission (FCC) Forms 1235, 1240 and 1205. Resolution (1) Approving various proposed cost-based decreases for installations and associated equipment; (2) Approving proposed cost-based increases in the Maximum Permitted Rates for the Basic Service Tier ($2.86); and (3) Approving proposed cost-based increases in the Maximum Permitted Rates for the Cable Programming Services Tier ($0.46); and (4) Approving proposed upgrade-related increases in the Maximum Permitted Rates for the Basic Service Tier ($1.57). These items regard maximum rates only. The effective date of any actual rate increases within said maximums would be subject to discretionary action by Cox and thirty days notice to subscribers. Items 1-3 are per Forms 1205 and 1240 and have been found to be appropriately justified adjustments based on programming costs within the guidelines set by the FCC. Item 4 is based on an FCC decision rejecting Chula Vista's complaint regarding upgrade-related increases in CPS rates and decreasing Cox's requested upgrade-related Basic rate increase request from $1.59 to $1.57 to reflect adjustments to the accounting of income tax allowances. For further information or questions, please contact Gerald Young, Principal Management Assistant, at 585-5649. Any petitions to be submitted to the City Council must be received by the City Clerk's office no later than noon of the hearing date. If you wish to challenge the City's action on these matters 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 HEARINGS WILL BE HELD BY THE CITY COUNCIL on Tuesday, December 9, 1997, 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: November 19, 1997 NOTICE OF SECOND PUBLIC HEARING CITY OF CHULA VISTA AMENDMENT TO FY 1997-98 COMMUNITY DEVELOPMENT BLOCK GRANT ANNUAL PLAN NOTICE IS HEREBY GIVEN THAT THE CHULA VISTA CITY COUNCIL will hold a second public hearing to consider the following: . Proposed amendment to the FY 1997-98 CDBG Annual Plan to incorporate a Section 108 loan. Information on the amendment to the FY 1997-98 CDBG Annual Plan and the proposed application for a Section 108 loan is available for examination at the Community Development Department, 276 Fourth Avenue and the City of Chula Vista Library, 356 F Street. Please call Debra Anderson at 476-5355, for more information. Any petitions to be submitted to the City Council must be received by the City Clerk's office no later than noon of the hearing date. If you wish to challenge the City's action on these matters 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, December 16, 1997 at 6:00 p.m. in the City Council Chambers, Public Services Building, 276 Fourth Avenue, at which time any person desiring to be heard may appear. DATED: November 26, 1997 Chris Salomone Community Development Director H:\HOME\COMDEV\ANDERSON\HUD COUNCIL AGENDA STATEMENT Item ~ Meeting Date 12/09/97 ITEM TITLE A. Public Hearing: Regarding existing and proposed rates and charges for Cox Communications' Basic Service Tier and associated equipment and Cable Programming Services Tier, as submitted by Cox Communications to the City via Federal Communications Commission (FCC) Forms 1235, 1240 and 1205. B. Resolution /?fIr -3 '1 1. Approving various proposed cost-based decreases for installations and associated equipment; and 2. Approving proposed cost-based increases in the Maximum Permitted Rates for the Basic Service Tier ($2.86); and 3. Approving proposed cost-based increases in the Maximum Permitted Rates for the Cable Programming Services Tier ($0.46); and 4. Approving proposed upgrade-related increases in the Maximum Permitted Rates for the Basic Service Tier ($1.57). SUBMITTED BY: Principal Management si t t Y oun~ REVIEWED BY: City Manage~ ~ff (4/5ths Vote: Yes_ NoX) Items 1, 2, and 3 represent Cox Communic ons' annual cost-based requests for increases in their maximum permitted rates. Such increases are allowed by the FCC as long as they conform to a formula of inflationary and programming expenses. Chula Vista's consultant reviewed these calculations and found them to be appropriately justified. Item 4 is based on an analogous FCC decision rejecting Chula Vista's 1996 complaint regarding upgrade-related increases in expanded basic services. Although the appeal on upgrade-related increases in basic services is still pending (since November of 1996), basic rates were computed on the same upgrade-based formula as the expanded rates and were also reduced by the FCC in the process of their expanded tier decision. It is on the basis of this FCC action, which was precedent not available at the time Council initially considered the upgrade, that Cox has requested that this be reconsidered and that staff recommends the item for approval. RECOMMENDATION: That Council conduct the public hearing and adopt the resolution: 1) Approving various proposed cost-based decreases for installations and associated equipment; 2) Approving proposed cost-based increases in the Maximum Permitted Rates for the Basic Service Tier ($2.86); 3) Approving proposed cost-based increases in the Maximum Permitted Rates for the Cable Programming Services Tier ($0.46); and 4) Approving proposed upgrade-related increases in the Maximum Permitted Rates for the Basic Service Tier ($1.57). Regarding item 4, various proposed alternative actions have also been presented for Council consideration. BOARD/COMMISSION RECOMMENDATION: N/A Local vs. federal roles The Federal Telecommunications Act of 1996 divides regulatory authority into local (Basic Cable) and federal (expanded/Cable Programming Services or "CPS") jurisdictions. It is Chula Vista's responsibility as a local franchising authority to regulate Basic Cable rates, assist with /9~/ , Page 2 12/09/97 Item Meeting Date customer complaints as appropriate, and file expanded tier complaints with the FCC as appropriate. Basic service typically provides "must carry" programming, such as local networks and public and government access channels. The expanded tier contains all other channels (e.g. A&E, CNN, MTV) that are not marketed "a la carte" for a premium price (e.g. HBO, Showtime). Under federal regulations, cable companies are allowed to justify rate requests according to specified forms. In this case, Cox Communications is proposing increases in their Maximum Permitted Rates (MPR) on the basis of both a recent system upgrade (fiber-optics, redundant wiring, additional head-ends/nodes) and inflationary and programming costs. They are also proposing various decreases in equipment rental and installation rates. In reviewing rates, cities are not required to determine what the exact rates should be, just whether the charges as proposed are appropriate or not. The FCC is the final arbiter in expanded tier matters and appeals of local franchise authority actions on basic rates. It should be noted that all of the rates in question are maximum permitted rates and that Cox typically sets its actual rates below these maximums. For example, the current Cox Standard (basic + expanded) maximum rate in Chula Vista is $30.40, but Cox is charging $28.95. Cox's goal in seeking approval for their various filings is to reach consistent rates countywide, which would again be below the maximums (See Table 3), but would allow them to simplify their marketing and billing activities. Last vear's actions In October 1996, the City Council, staff and consultant (Public Knowledge, Inc.) conducted an in-depth review of Cox Communications filings with the City and the FCC regarding proposed increases in the maximum permitted rates for basic and expanded cable services. While approving certain cost-based rate increases and service/equipment decreases, the City ruled against two related items that involved recovery of upgrade-related costs. The first of these attempted to recover that portion of the cost associated with expanded tier channels. The second was aimed at recovering the equivalent portion associated with basic cable channels. At the time, the FCC's Form 1235 process for analyzing upgrade-related increases was new and there was no applicable precedent indicating how the FCC rules would be interpreted. Based on that lack of clear direction from the FCC, and concurring in the recommendations of staff and the city's consultant, Council denied an increase in basic cable maximum rates and filed a formal complaint with the FCC regarding federally-regulated expanded tier rates. The expanded rate issue was resolved fairly quickly--in approximately one month--in favor of Cox (See Table I and Attachment #4). The basic rate issue has been pending for more than a year without a projected date for a resolution. In fact, the average waiting time for such complaints to be heard is approximately two years. This vear's cost-related submittals (Form 1240. 1205) Cox has filed its annual inflation/cost-related rate filings (Form 1240 and Form 1205) with the City, to be considered as part of their planned February rate increases. These filings ask for an /9.. .2 , Page 3 12/09/97 Item Meeting Date increase in the maximum permitted basic rate to $12.60 and expanded rate to $21.12, for a combined total of $33.72. Both of these filings have been reviewed by Public Knowledge, a consultant jointly hired by the City and County of San Diego, Chula Vista, National City, Poway, La Mesa and Imperial Beach. The consultant found the requested cost-based increases in service rates and decreases in installation and equipment rates to be appropriately justified (See Attachment #6). One major reason for the cost increase this year is the cost of the Padres channel being added to the basic service level in 1997. This has been a very popular channel for Cox, but also one that bears a significant cost. The equipment and installation costs would decrease, with the hourly service charge decreasing from $31.03 to $30.49 and basic converter box rental decreasing from $1.40 to $0.79 per month. Subiect of last vear's denial (Form 1235) In completing their 1995 system upgrade, Cox added fiber-optic technology to their system and increased broadcasting capacity from 450 Megahertz (MHz) to 750 MHz. Of this increase, only 100 of the 300 MHz was initially put into use in the way of new channels, enhanced signal quality, etc. The remaining 200 MHz remained available to accommodate future channel additions. This would tend to indicate that the maximum share of the upgrade to be passed along to existing channels might be 33%, rather than the 73%-80% proposed by Cox. Faced with a lack of information about how the FCC's new Form 1235 rules would allocate the cost of the upgrade to existing channels, the City denied the basic rate increase and filed a complaint about the expanded rates. Both matters then went to the FCC for a final decision. In their decision on the related expanded service complaint, the FCC held that the formula for assigning upgrade costs to existing channels which was used (which was the same one used for basic rates) was not umeasonable. The FCC did make one adjustment in Cox's accounting of income tax expenses. This adjustment was made in both Cox's expanded rates and their basic rates. The result was a $0.04 decrease in maximum permitted expanded rates and a $0.02 decrease in the maximum permitted basic rates (dropping from $1.59 to $1.57). While a basic rate appeal is still outstanding, this initial action by the FCC found the formula used in spreading costs to both the expanded and basic cases to be acceptable. Action Response Basic Expanded Initial Submittal --- $1.73 $4.03 Questions by Cox revised submittal to amend $1.59 $3.52 Consultant accounting for advertising revenues Remaining question Complaint/Appeal filed; FCC decision on $1.57 $3.48 re: existing channel expanded service amended both expanded share of upgrade and basic rates for income tax expense Table I: History of Rate Filings/Decisions /~.3 Item , Page 4 Meeting Date 12/09/97 Cox had argued in defense of their initial rate formula that there were benefits to customers in terms of enhanced reliability and signal quality. At the time, Cox reported a decrease in service outages from 14,909 to 700 customer hours per month. Staff was hesitant to draw conclusions about reliability improvements based on limited post-upgrade data (4 months), instead looking at more modest improvements like the signal to noise ratio (6.6%) and national averages for post- upgrade reliability improvements (0.05%). Now that an additional year of data is available, it appears that the last 15+ months have yielded an average 84.2% decrease in service outages. This could also tend to support Cox's contention that their formula passed along a reasonable upgrade cost based on the benefit received. Another way of looking at that improvement, however, is that the number of hours of uninterrupted service has increased incrementally. Since the number of such broadcast hours is much greater than the number of outage hours, the percentage change is more modest. Measure of Improvement Initial Post- Percentage Upgrade Improvement Customer Hours of Outage 12,128 1,910 84.2% Customer Hours of Non-Outage 24,932,272 24,942,490 0.04% Broadcasting 1 Carrier to Noise Ratio (Signal 45 C/N 48 C/N 6.6% clarity) Table 2: Measurements of Improvement Due to the varying interpretations of the customer outage statistics, Public Knowledge recommends the greater significance be ascribed to carrier to noise ratios as a measure of picture quality (e.g. lack of graininess, "snow," or other interference; See consultant comments below). Why take action now? Cox appealed the City's basic rate decision more than a year ago, on which the FCC has yet to rule specifically. It did, however, issue a ruling on the related expanded basic rates and the appropriateness of Cox's method of assigning costs to (basic and expanded) existing channels, which was the remaining issue that led to the filing of the complaint and appeal with the FCC (See Table 1), adjusting both basic and expanded rates accordingly. It would be logical to assume that the final ruling on basic cable rates, when it is forthcoming, would be along the same lines and once again overturn the City's action. Although the City could certainly wait (potentially another year) for that FCC decision to be reached, it may be more appropriate to accept the initial ruling as the indication from the federal government about how such formulas would be considered that was not available when Council last considered this issue. 1 Assumes a maximum number of customer hours of broadcasting of 34,645 Chula Vista customers x 24 hrs x 30 days = 24,944,400 customer hours/month. /7-( Item , Page 5 Meeting Date 12/09/97 Council may recall that prior to the actual filing of a formal complaint last year, the FCC was unwilling to discuss the particulars of how a specific complaint might be judged. With the decision received on the expanded rates, the City now has a precedent on which to make a decision. Cox is requesting that Council act on that precedent rather than continue to make Cox wait for a second ruling. Assuming on the other hand that the FCC might eventually rule in the City's favor, the question is whether it is appropriate to make a decision based on the initial FCC decision and data regarding reliability and signal improvements or to require Cox to wait until a final FCC determination is made. At the time of last year's hearing, there was some input from Council that a mediated solution or some other resolution short of a protracted legal appeal might be the better course of action. Council also indicated a preference for handling such matters at the local rather than federal level. Staff indicated that there was insufficient information to make that a real possibility last year. However, in light of the initial FCC decision, Cox has made a reasonable request that would save them any additional legal expense to present their case in their appeal. Staff would recommend that Council consider this information and approve the upgrade related increase in the maximum permitted rates. Chula Vista has the option of waiting for the decision to be made by the FCC or acting on the basis of the ruling made on the same upgrade-related increase and approving that increase in maximum rates now. Were this to take place, Cox's authority to raise its rates in Chula Vista would still be less than it is in most other San Diego County jurisdictions. Staff recommends this maximum permitted rate be approved based on the FCC's actions to date and the desire not to delay action on this matter, potentially for another year. FCC Comments As stated earlier, the FCC ruled in favor of Cox on the expanded portion of the upgrade-based rate increase. In doing so, they also made an adjustment to the basic rate request (which was submitted according to the same formulas on the same FCC filing). Officially, however, basic rate appeals are handled by a different office at the FCC, and this case is still pending. John Norton of the FCC's local rate appeal office refused to speculate as to when a decision may be released, but the typical waiting time for such a decision is two years. Cox has requested, based on the significant delay in FCC action, that the City use the related expanded tier ruling as a guide and act to approve the basic rate request accordingly. Alternative Actions: Consultant Comments Notwithstanding the FCC's ruling on the spread of costs to existing channels via the expanded tier decision and the related amendment to basic rates, Jay Smith at Public Knowledge advised that the City continue to wait for a second FCC decision. This stems both from giving the City the benefit of a definitive ruling and from the belief that the separate staff at the FCC who deal with basic rate appeals and expanded tier rate complaints may view the same formula differently. Based on the data that are available, however, he would give the most weight to the improvement in signal quality. System reliability, when considering the total number of broadcast hours, would /9~ Item , Page 6 Meeting Date 12/09/97 tend to be a very small percentage increase. Signal quality, however, with an improvement from 45 carrier/noise ratio to 48 would represent a 6.6% increase. This would be the most measurable way of relating the upgrade to improvements for basic cable customers. Working from a current maximum permitted rate of $9.74 for basic and a 6.6% increase, he arrived at a figure of $0.65. This rate would be another alternative for Council's consideration, as would taking no action at this time and continuing to await further FCC rulings. If awaiting an FCC decision is the preferred direction, Council could also request that the FCC expedite their processing of the appeal so that a final decision is not unnecessarily delayed. Likelv imoacts on rates Regardless of what the City does on the upgrade-related issue, customers wi11likely see the same rate actions from Cox. The rates being proposed countywide (effective in most other jurisdictions on November 15) are $13 for basic cable and $30.95 for expanded service. While Chula Vista's current rates are $9.74 and $28.95, the maximum permitted rates are $9.74 and $30.40. Thus, even without any action by the City, Cox could reach $30.40/month. Adding in the cost-based increases which have been found to be appropriately justified, Cox could raise its rates to $12.60 and $33.72/month. Comparing the maximum and proposed actual rates, Chula Vista's basic and expanded rates would be below the maximum rates by $1.19 and $3.17, respectively, or a total of $4.36. MAXIMUM BASIC CABLE CPS (EXPANDED TOTAL: BASIC + PERMITTED RATES SERVICE) EXPANDED (Cox Standard) CURRENT $9.74 $20.66 $30.40 MAXIMUM PROPOSED 1240 $2.86 (29.4% $0.46 (2.2% $3.32 (10.9% FORM INCREASES increase) increase) increase) SUBTOTAL $12.60 $21.12 $33.72 PROPOSED PENDING 1235 $1.57 (12.5% n1a $1.57 (4.6% APPEAL increase) increase) TOTAL POTENTIAL $14.19 $21.12 $35.29 MAXIMUM RATE Table 3: Maximum and Actual Rates )9-~ Item , Page 7 Meeting Date 12/09/97 ACTUAL RATES BASIC CABLE EXPANDED TOTAL: COX STANDARD CURRENT $9.74 $19.21 $28.95 PROPOSED TOTAL $3.26 (33.5% -$1.26 (6.6% $2.00 (6.9% INCREASE/ increase) decrease) increase) DECREASE NEW TOTAL $13.00 $17.95 $30.95 PROPOSED (2/98) No action is required by the City to allow Cox to implement these cost-based changes (Form 1240 rate increases and Form 1205 equipment/installation decreases). If the City were to hold off on a decision on the cost-based increases and receive complaints from the public following the implementation of any actual rate increase, the City would still have 180 days from the time the rate increase was implemented to file a complaint with the FCC. Assuming Cox passes along their next rate change in February, Council would still be free to act on these rates until August, 1998. However, since the Public Knowledge report indicates that these rates are appropriately justified and would likely be upheld by the FCC if challenged by the City, staffs recommendation is that those rates be approved now. With these changes, Cox could reach their targeted countywide rate of $30.95 without any City action on the upgrade-related basic rate. This could be done with rates of $12.60 for basic cable and $18.35 for the expanded tier. What this would not accommodate would be Cox's desire to reach rate consistency countywide on both the basic and expanded components of their rates for simplification and potential cost savings in their marketing and billing. This is the reason for their request for reconsideration. If the upgrade-related increase were to be granted, the rates would be $13 for basic cable and $17.95 for expanded. The approval of the upgrade-based increase would thus not impact the overall $30.95 "Cox Standard" rate, but would represent a recognition on the City's part that the direction from the FCC that was being sought last year has, in fact, been received. It would actually lead to a $0.40 increase (3.2%) in basic rates beyond the $12.60 level otherwise allowed, with a corresponding decrease in the charge for the expanded tier. Another factor in the approval of the upgrade-based increase would be that it would allow this change in rates to take place in a timely manner. Cox typically changes rates once per year. This avoids confusion on the amounts due and protects the company from undue criticism for successive increases, regardless of their size. By acting on the basic rate request now, the City would enable Cox to match its Chula Vista rates to those in the rest of the County without continuing to wait for a second FCC decision and for a subsequent rate increase interval. /9-7 Item , Page 8 Meeting Date 12/09/97 Basic-onlv snbscribers Of Cox's 34,645 residential subscribers in Chula Vista, only 1,000 (or 2.9%) subscribe to basic cable only. The reasons for a basic only subscription vary---from economic reasons to the desire to obtain local broadcast channels as a supplement to direct broadcast satellite service. Basic service provides 23 channels, including local networks (such as KFMB, KNSD, KPBS, KUSI), public and government access channels, the Padres channel, San Diego's News Channel (Ch. 15), and three Spanish language channels. Expanded service provides an additional 42 channels of specialty programming, including ESPN, CNN, Lifetime, AMC, the Disney Channel, MTV and Bravo. Although some customers have indicated a desire to receive just a limited number of these expanded tier channels, FCC rules allow cable companies to market non-local channels in packages rather than "a la carte." Cable companies walk a fine line between customers who want just their local channels on basic cable (due to signal problems with traditional antennas) and those who want a wide variety of programming at a lower price. The non-local channels carried on Cox's basic tier are WGN, TBS, QVC, the Weather Channel and C-SPAN. There is no requirement placed on cable companies to add to or limit the size of their basic cable channel lineup. Basic cable is also not considered a "lifeline" or low-income level of service. Rather, it is the level of service containing at a minimum all local broadcast channels and which is required for subscription to any additional channels or levels of service. If Cox preferred, they could do as Chula Vista Cable does and offer only a single, larger package of non-premium channels. Even as the industry is further deregulated, with federal rate limits on expanded service lifted in March 1999, basic cable rates will continue to be subject to local regulation. By approving last year's rate request (as modified by the FCC to $1.57), Council would not be giving up any of its authority to continue its review and approval/denial of future basic rate increase applications. This would continue until "effective competition" is achieved (see "Current state of competition" below). Current state of competition Chula Vista has historically been one of the few jurisdictions in the nation to have competition in the cable market, between Cox and Chula Vista Cable. With the passage of the 1996 Telecommunications Act, several avenues were opened to additional competition within the cable industry. The most anticipated of these stems from the convergence of telephone and cable technology around fiber optics. Pacific Bell has yet to roll out a telephone line-based video product, but they are test-marketing in the Los Angeles area a mini-dish system, with signals originating from line-of-sight mountain-based antennas. Another company, Digital Broadcasting OVS is working to bring to market a more flexible system taking advantage of a combination of leased wires/satellites/etc. from other companies. Such an "open video system" would act as a conduit for programming providers to reach customers via channels leased from the OVS company (without the need to build new networks). Additional activity and market expansion from these companies is anticipated in 1998 and 1999. )9-% , Page 9 12/09/97 Item Meeting Date The ability of local agencies to regulate basic rates will continue until there is "effective competition." Chula Vista Cable already faces effective competition from Cox based on Cox's share of the local market. Therefore, the City cannot regulated Chula Vista Cable's rates. Cox would be ruled to face effective competition if Chula Vista Cable were to serve 15% or more of the households in the city. 2 Effective competition is also deemed to exist if a telephone company or open video system begins offering non-satellite service in the franchise area, regardless of their number of subscribers. Thus, once competition arrives, the City will lose its basic cable rate regulatory authority. And with the March 1999 federal deregulation of expanded rates, all cable rates will then be set by the market. Other rate issues As Council may be aware, there is currently a lawsuit pending regarding Cox' practices in requiring customers to subscribe to expanded basic service if they wish to receive pay-per-view or premium channels. Such a practice is not allowed under FCC regulations, unless (as in some areas of San Diego County) there are technical constraints. In the Chula Vista service area, these technical constraints do not exist. Thus, if a Chula Vista subscriber wanted to receive basic service and HBO, a "signal trap" could be set in their home when the HBO converter box was installed to allow them to opt out of expanded service. Another rate issue which has yet to be resolved is the status of competition within the industry and whether Congress will decide to change the law to regulate rates more strictly until greater competition evolves. The Consumers Union is one group which is pushing for rate regulation to be reconsidered. However, given the two-year concerted effort Congress went through to pass the 1996 act, it is unlikely that any significant effort will be made to roll back its direction to leave rate setting to the open market. In the meantime, open video systems, phone-based and satellite-based competitors continue to position themselves to test market or compete on a wide- scale basis. Staff will continue to track each of these issues closely and keep Council informed of any significant developments. Other Cities As of November 15, 1997, Cox has begun charging customers in other cities at a rate of $13 for basic and $30.95 for expanded service. Chula Vista, National City, Santee and Imperial Beach are on a slightly delayed rate schedule due to the timing of the upgrade and rate review processes and would be subject to increases in February 1998. The rate increases in effect in the City and County of San Diego, La Mesa and Poway were also reviewed by Public Knowledge and found to be appropriately justified. 2 Serving 15% of households means actually having them as subscribers, not merely having cable facilities in place. Chula Vista Cable does not currently have enough subscribers to pose "effective competition." /9/7 Item , Page 10 Meeting Date 12/09/97 While Chula Vista subscribers to "Cox Standard" have been paying the same $28.95 as others in the County, Chula Vista basic customers have been paying $9.74 for the past year. Others in Cox's service area have been paying $10.50, while those in the northern areas of San Diego County have been paying $12.50. This has been a benefit to Chula Vista customers while the rate methodology has been in question. This benefit would disappear as Cox attempts equalize their rates countywide3 There would remain, however, a difference in maximum permitted rates. With the proposed changes, Chula Vista's maximum permitted rates would be $14.17 for basic and $35.29 for expanded service. In several north county communities, these rates ranges as high as $16.26 for basic and $36.32 for expanded service. In cities with other franchisees, some actual rates also exceed Cox's planned charges, including $15.50 for basic service from Daniels (e.g. Carlsbad) and $31.41 for basic+expanded from Southwestern (e.g. parts of San Diego, Poway). FISCAL IMP ACT: The actual rates currently being charged for basic and expanded service are $9.74 and $28.95. The sum of the recommended changes in maximum permitted rates is $4.43 in basic rates and $0.46 in expanded service rates. The actual rates changes Cox is projecting for 1998 are an increase of $3.26 (+33.5%) for basic cable (to a basic rate of $13) and a decrease of $1.26 (-6.6%) for expanded service (for a new expanded rate of $17.95 and a total rate of $30.95).4 This would amount to a $2.00 (+6.9%) increase in the overall cost of "Cox Standard" service. Based on Cox's plan to bring all rates in the county to a charge of $30.95, the actual total "Cox Standard" rate for Chula Vista would not be dependent upon Council's action on the upgrade- related basic rate request. Rather, the exact ratio between basic and expanded rates that leads to the $30.95 charge would be impacted. In terms of City revenues, franchise fees would be projected to increase by approximately $25,000 via the recommended action. Staff has not given any consideration to the potential impact of rate regulation on these fees in conducting the rate regulation function. Attachments: Resolution Q 1. City Council Minutes, October 15 and 22, 1997 ~ 2. Cox Communications, Initial and revised FCC Form 1235 (excerpts) ~ 3. Cox Communications, Basic Rate Appeal to FCC, November 21, 1996 . 4. Federal Communications Commission, Ruling and Errata re: Cox Expanded/CPS Rate Complaint, December 1996, January 1997 fI;) 5. Cox Communications, FCC Forms 1205, 1240, July/October, 1997 ~ 6. Public Knowledge, Review of FCC Forms 1205, 1240, October 10, 1997 o 7. Public Knowledge, Review of FCC Form 1235 (1996) ~ 8. Union-Tribune, "Cox to hike most customers' cable rates," October 17, 1997 cllcablelcoxl13.rt 3 The $2.00 disparity between north county and most other jurisdictions disappeared in November when all were switched to a $13 basic rate. 4 In the process of reaching $30.95 as a total rate for "Cox Standard," the marginal cost for the expanded service itself would actually drop by $1.26 from $19.21 to $17.95. /'1-/r!l RESOLUTION NO. / g (J 3 'f RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA (1) APPROVING VARIOUS PROPOSED COST-BASED DECREASES FOR INSTALLATIONS AND ASSOCIATED EQUIPMENT; AND (2) APPROVING PROPOSED COST-BASED INCREASES IN THE MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER ($2.86); AND (3) APPROVING PROPOSED COST-BASED INCREASES IN THE MAXIMUM PERMITTED RATES FOR THE CABLE PROGRAMMING SERVICES TIER ($0.46); AND (4) APPROVING PROPOSED UPGRADE-RELATED INCREASES IN THE MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER ($1.57) WHEREAS, Items 1, 2, Communications' annual cost-based maximum permitted rates; and and 3 above represent Cox requests for increases in their WHEREAS, such increases are allowed by the FCC as long as they conform to a formula of inflationary and programming expenses; and WHEREAS, Chula vista's consul tant reviewed these calculations and found them to be appropriately justified; and WHEREAS, Item 4 above is based on an analogous FCC decision rejecting Chula vista's 1996 complaint regarding upgrade- related increases in expanded basic services; and WHEREAS, although the appeal on upgrade-related increases in basic services is still pending (since November of 1996), Cox has requested that this be reconsidered since the expandedjCPS and basic rates were computed on the same upgrade-based formula; and WHEREAS, after a duly noticed public hearing on December 9, 1997 at 6:00 p.m., the City Council heard and considered testimony regarding existing and proposed rates and charges for Cox Communications' Basic Service Tier and associated equipment and Cable Programming Services Tier, as submitted by Cox Communications to the City via Federal Communications commission (FCC) Forms 1235, 1240 and 1205. NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby (1) approve various proposed cost- based decreases for installations and associated equipment as follows: the hourly service charge shall decrease from $31.03 to $30.49; converter box rental shall decrease from $1.40 to $0.79 per month; (2) approve proposed cost-based increases in the maximum permitted rates for the basic service tier ($2.86); (3) approve proposed cost-based increases in the maximum permitted rates for the cable programming services tier ($0.46); and (4) approve /9-/) proposed upgrade-related increases in the maximum permitted rates for the basic service tier ($1.57). Presented by Approved as to form by C:\rs\rates.cox Gerald Young, Principal Management Assistant /9-/2 ATTACHMENT 1 --0::-/9' Minutes Ootober 15, 1996 Page 7 I 12, PUBLIC HEARING REGARDING EXISTING A),'D PROPOSED RATES AA'D CHARGES FOR COX COMJlruNICATIONS' BASIC SERVICE TIER A.l\'D ASSOCIATED EQUIPMENT AND CABLE PROGRAMMING SERVICE TIER, AS SUBMlTIED BY COX COMJ\ruNICATIONS TO THE CITY VIA FEDERAL COMJ\ruNICATION COMMISSION (FCC) FORMS l235, 1240 AND 1205 - In May 1996, Cox Communications instituted a $3.79 increase in its Cable Programming Services tier. This charge is subject to FCC regulation, thus any complaints must be filed with the FCC. At the same time, Cox proposed to raise its Maximum Permitted Rates for the Basic Service Tier, which is subject to City regulation. Both of these changes were based on costs to upgrade Cox's infrastructure. Further cost-based increases in Maximum Permitted Rates were requested in July, along with decreases in the rates for associated equipment/installations. Staff recommends approval of the resolution. (principal Management Assistant Young) Continued from the meeting of 10/1/96 RESOLUTION 18447 DISAPPROVING UPGRADE-RELATED INCREASES IN MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER; DIRECTING STAFF TO FILE A COMPLATh'T WITH THE FCC ON BEHALF OF LOCAL SUBSCRIBERS REGARDING UPGRADE-RELATED INCREASES IN THE CABLE PROGRAMMING SERVICE TIER RATES; APPROVING PROPOSED COST-BASED RATE DECREASES FOR ASSOCIATED EQUIPME!\'T; A!\'D APPROVING PROPOSED COST-BASED INCREASES IN THE MAXlJIfUM PERMITTED RATES FOR THE BASIC SERVICE TIER Gerald Young, Senior Management Assistant, said there was concern about some changes in Cox Communication's rates: (I) upgraded related cbange, (2) a cost base or inflationary change, and (3) a decrease in the equipment and installation rates for Cox. The equipment rates and inflation based changes in the rates bave been reviewed by a consultant and found to be appropriate and staff recommends approvaL The remaining change, which is the upgrade base change, is still a subject of some discussion and dispute between the City and Cox. Cox was provided with a copy of the consultant's report concerning those rates and in their response, they concurred with some of the ftndings in tbe report and revised their proposal accordingly. Most of the rates were maximum permitted rates and they are Dot what is currently charged on customers' bills. As things currently stand, regardless of the decrease of about 65 cents in what Cox is proposing, we still have approximately $5.11 in dispute. There is a percentage of the cost of the infrastructure upgrade attributed to existing channels, and in Cox's response, tbat percentage was reduced from 80 percent to 73 percent. This means that Cox's current customers were cbarged, or are proposed to be charged, an additional amount based on how this upgrade improved service. The consultant's report claims that most, or at least a large portion, of this upgrade should not be charged to existing customers since there were no additional basic cable channels added to the sen'ice as a result of the upgrade. Cox's position is that since there was some increase in the quality of the signal being received by customers, it is appropriate for some percentage of the charge to be passed along to tbe customer. The rea.l question we are faced with is what that percentage should be. It is a technical question and one that can be resolved in one of two ways. The City can work with our consultant, at additional expense, to do a more detailed rate study to determine what that exact rate should be, or the matter can be turned over to the FCC as a formal complaint. In terms of reviewing tbe rates, cities are Dot required to determine wbat tbe exact rate sbould be. If we determine that the rates, as proposed by the cable company, are not appropriate, the City can file a complaint with the FCC. It is incumbent on the FCC to determine what dollar figures we should be talking about and that is what staff recommends. Staff also recommends that a caveat be added to the resolution to allow staff one additional week to meet with Cox to discuss other potential options. Cox also requested a one-week continuance. If the City chose to submit a complaint to the FCC, we are facing a deadline of 10/28/96, and there would be sufficient time at the 10/22/96 meeting to take whatever actions by Council. He added that since we are looking at a situation where additional rate studies would require additional time and expense of City staff and a consultant, it is somewhat unlikely we would reach a compromise. / -I 1\'ilnutes October 15, 1996 Page 8 Staff recomroends that if Council chose to take action tonight, to add language "be it further resolved that CnunclI hereby authorizes staff to continue to discuss the subject rate request with Cox communications, with any complaints to the FCC tahled until the conclusion of those discussions, hut in no case tahled heyond 10/23/96. If alternative terms can be strUctured to the satisfaction of both parties, they shaU he brought back to Council on 10/22/96 for final consideration.. This being the time and place as advertised, the public hearing was declared open. . Mary Teets, 5159 Federal Boulevard, San Diego, CA, representing Cox Communications, stated they have been working with staff to corne up with some type of compromise, sO they can avoid the City filing a complaint with the FCC. In Cox's opinion, it is not something in the best interest of the City, for Cox, or their customers. Cox submitted a revised Form 1235 and requested the opportunity to continue working with staff for the next week, and to have this item brought back to Council on 10/22/96. Councilmember Moot asked if the FCC had an alternative dispute resolution forum where the City and Cox could go to a mediator, without having to go through the time and expense of filing a formal complaint. Ms. Teets said Cox had formal discussions with the FCC and the City's consultant to try to work on this issue, and the consultant is of the opinion that this is a gray area in terms of FCC guidelines. Cox would like to work with staff to come up with some type of compromise that would be acceptable to the City and Cox to avoid an FCC complaint. At this point, Cox is unaware of an alternative process. counci1member Moot said private industry has corne to the conclusion that these types of disputes are particularly amenable to mediation, and he asked Mr. Young to check if that was an available alternative. .- Mr. Young said he would look into that, and added that one of staffs concerns in this process was that there was a revised filing that showed a 73 percent application of the upgraded costs to existing channels. If staff and Cox were able to arrive at some compromise, it was unclear whether it was an entirely arbitrary figure or an inappropriately justified figure. That is where we would incur some additional expense if we were to get into arbitration or require further work with the consultant. In terms of filing a complaint with the FCC, there would he nO additional expense incurred by the City. If Cox continued charging the rates they were currently charging, that would be part of the subject of the complaint. Cox would not be precluded from that during the term of the complaint and if they chose to overrule the City turning down the other rate increases, they could charge those rates, until the FCC ruled otherwise. Councilmember Alevy asked for justification on the 1235 filing, because the May rate increased from $15.90 to $19.69, which was about 24 percent. Be said we should do all we can to keep this in-house, and to corne up with an agreement with the City and Cox before we ask the Federal government to make the decision for us. MSUC (HortonIAlevy) to continue the item to the meeting of 10/22/96. ORAL C01l1MUN1CA TlONS None. BOARD Al'.'D COM1IUSSlON RECOMMEl'.'DA TlONS None submitted. l-~ Minutes OOlokr 22, 1996 Page 3 1O.A. RESOLUTION 18464 MODIFYING THE AGREEMEl\'T \\1TH MUKICIPAL RESOURCE CONSULTANTS (MRC) TO EXPAND THE SCOPE OF SERVICES PROVIDED BY )\ffiC TO INCLUDE UTILITY USERS TAX (UUT) AUDIT SERVICES - The Fiscal Year 1996/97 budget included $50,000 in revenue to be derived from an OUT Audit. Given MRC's satisfactory performance conducting the City's sales tax audit and excellent references from jurisdictions where MRC has audited OUT, it is recommended modifying the City's agreement with MRC to add our audit services to be compensated on a contingency basis. To access the records of Utility providers, "Friendly Subpoenas" must be issued as companies are prolllbited from voluntarily disclosing confidential customer information. Staff recommends approval of the resolutions. (Director of Finance). B. RESOLUfION 18465 INSTITUfING AN AUDIT PROCEEDING OF THE CITY'S GAS, ELECTRIC AND TELEPHONE UTILITY USERS TAX, DESIGNATING MUNICIPAL RESOURCE CONSULTAl\'TS AS AUTHORIZED REPRESEl\lATIVES OF THE CITY FOR COJ\'DUCTING THE AUDIT AND AUTHORIZING THE MAYOR TO ISSUE SUBPOENAS FOR THIS PURPOSE. 11. REPORT REGARDING THE DEVELOPMEr.'T IMPACT FEE FUNDS FOR THE FISCAL YEAR ENDED JUNE 30, 1996 _ State government requires local agencies assessing Development Impact Funds to make available financial data to the public each fiscal year. It also requires the local agency review this information at a public meeting. Staff recommends Council accept the report and approve of the resolution. (Director of Finance) RESOLUTION 18466 MAKING FINDINGS THAT THE UNEXPENDED FUNDS IN THE VARIOUS DIF FUNDS ARE STILL NEEDED TO PROVIDE CONSTRUCTION OF FACILITIES FOR WHICH THE FEES 'WERE COLLECTED ... ... .. END OF CONSENT CALENDAR .. .. .. PUBLIC HEARINGS Al\'D RELATED RESOLUfIONS AND ORDINANCES 12. PUBLIC HEARING REGARDING EXISTING AND PROPOSED RATES AND CHARGES FOR COX COMMUNICATIONS' BASIC SERVICE TIER AND ASSOCIATED EQUIPMEJ\'T Al\'D CABLE PROGRAMMING SERVICE TIER, AS SUBMITTED BY COX COMMUNICATIONS TO THE CITY VIA FEDERAL COMMUNICATION COMM1SSION (FCC) FORMS U35, U40 AND 1205 - Cox Communications and staff have discussed potential courses of action regarding the City's regulation of cable rates. Those discussions have also included further contacts with the Federal Communications Commission (FCC) and the City's consultant, Public Knowledge. The staff recommended position would result in a Maximum Permitted Rate of $26.92, but would allow Cox to charge as much as $30.95 per month, unless and until such a charge is invalidated by the FCC. Staff recommends approval of the resolution. (principal Management Assistant Young) Continued from the meeting of 10/15/96. RESOLUfION 18447 DISAPPROVING UPGRADE-RELATED INCREASES IN MAXIMUM PERMTITED RATES FOR THE BASIC SERVICE TIER; DIRECTING STAFF TO FILE A COMPLATh'T WITH THE FCC ON BEHALF OF LOCAL SUBSCRIBERS REGARDING UPGRADE-RELATED INCREASES IN THE CABLE PROGRAMMING SERVICE TIER RATES; APPROVING PROPOSED COST-BASED RATE DECREASES FOR ASSOCIATED EQUIPMENT; AND APPROVING PROPOSED COST-BASED INCREASES IN THE MAXIMUM PERMITTED RATES FOR THE BASIC SERVICE TIER Gerald Young, Senior Management Assistant, stated this item was continued from 10/15/96 so Cox Communications and staff could discus the issue still in dispute. There are three rate issues proposed for Council. On two of the issues, staff concurs with Cox and has recommended approval. On the third issue, which is related to a system upgrade that Cox completed, there was a dispute as to what portion of that upgrade should be passed on to existing customers. (Public Knowledge, the consultant, was not present.) In our discussions with Cox over the past week, we discussed the bottom-line priorities that Cox has in this rate filing. The first priority is that they have reached a market rate of $28.95 per month. This is a rate they announced in other jurisdictions and are instituting effective 11/15/96, and Cox is interested instituting that rate in Chula Vista following the resolution of these issues. The second priority was to avoid the need to file a basic rate appeal. If they were unable to reach the rates they wanted and found the need to appeal the City's decision on basic cable rates, they would file an appeal with the FCC. There are two processes that can go before the FCC: one is a basic 1-3 Minute~; Ootober 22, 1996 Page 4 rate appeal, and the other is a complaint filed by the City on the expanded basic or cable programming services. In the alternatives presented hy staff, the first alternative accomplishes two of Cox's priorities: it allows them to reach a rate of $28.95 per month, without having to resort to a hasic rate appeal. The current maximum permitted rate is $26.92. With what staff recommends, Cox would be able to reach a rate of $30.95, subject to the possibility that the FCC migbt rule that all or a portion of that rate was not justified. Cox's position has been the rate is justified, and they would be allowed to cbarge up to that rate, unless and until the FCC ruled otberwise. If the FCC ruled that Cox charged a rate higher than they should, customers would be subject to refimds. The other two alternatives shown in the report are proposals 2 and 3, that the City approve the upgrade-based increase in the basic cable, but either file a complaint with the FCC or not file a complaint. These are somewhat more of the preferred options for Cox. The third option allows them to reach the $28.95 rate or higber, without having to file a basic rate appeal. Wbat remains in question is whether the City would file a complaint with the FCC over the expanded basic rates, which is what Cox asks for. The current basic rate is $7.30 per month; the requested rate is $10.50 per month, which amounts to a 44 percent increase. It is staff's recommendation, on that basis and on the inconclusive nature of some of the data, that Council not approve the increase. In terms of the upgrade, Cox is requesting a portion of that upgrade be attributed to existing channels. Their initial request was that 80 percent of that upgrade be attributed to existing channels; that was revised to 73 percent a few weeks ago; and in further discussions, to approximately 43 percent. In looking at the available data, it is somewhat inconclusive. Staff and the consultant came to the conclusion that perhaps 33 percent, or something Jess than that, might properly be attributed to existing channels and customers, and therefore this lower 43 percent that Cox proposed might not be an appropriate rate. Since the data is inconclusive, staff recommends that we refer this to the FCC, which is the body that typically bears cable programming service complaints to determine wbat the exact percentage should be. When cities review rate cases like this, they are not required to come up with those exact percentages, as they are only asked to determine whether the rates, as they are proposed, are appropriate or inappropriate. This being the time and place as advertised, the public hearing was declared open. . Mary Teets, 5159 Federal Boulevard, San Diego, CA, with Cox Communications, said the first two issues are Cox's filing of FCC Forms 1240 and 1205. Staff and its consultant recommend approval of those forms and came to the conclusion that Cox is in compliance with FCC rules and guidelines in filing those forms. The third issue is the FCC Form 1235, whicb is a vehicle devised by the FCC to allow cable operators to recoup some of the costs of upgrading networks. In the South Bay, Cox invested $27 million since 1995 in the upgrade. Cox and staff have been negotiating as to what is the appropriate allocation rate. When Cox originally filed their Form 1235 with the City, the allocation rate was 80 percent; wben Cox received the draft complaint from the City, the rate was reduced to 73 percent; and since having discussions with staff from the last Council meeting, Cox came down to 43 percent. The 43 percent would not allow Cox to recoup over $11 miIlion in costs they put into the upgrade. Councilmember Alevy asked if Council moved forward as staff recommended, would Cox apply to the FCC for a higher rate, or would we send a letter of concern to the FCC and they would decide the rate. Ms. Teets replied that on the Forms 1240 and 1205, the FCC established Cox's maximum permitted rate. Regarding Form 1235, most likely what would bappen is the FCC would review it and come to a decision, and it would return to Council for certification. It could be years for a decision to be made, but Cox would do everything in their power to expedite the process with the FCC to get a ruling. Councilmember Alevy asked if there would be any back charging, or would Cox bave to live with the cbarges the City agreed to during that interim period. Ms. Teets responded if the FCC said 80 percent was the proper aIlocation rate, Cox would legally bave the ability to go back and recoup that. Whether it makes sense for Cox in terms of a practical and market position, they would have to look at it at that point in time. Mr. Young stated while the complaint was pending with the FCC, Cox would bave the ability to charge the full amount they requested of the City, and still do so until tbe FCC said otherwise. If Cox cbose to charge an amount less than the full amount, there is a possibility the FCC could approve more than that, but Cox could charge as much as they initially requested until they were told otherwise, and at that point be potentially liable for refunds. } -tf Minutes October 22, 1996 Page 5 Councilmember Moot asked if Cox could go from the current rate to $30.95 per month starting tomOrrow. Mr. Young answered yes. Under the staff recommendation, Cox would be able to charge up to their maximum permitted rates with 30 days' notice. If all portions of the staff recommendation were approved, Cox would be able to cbarge the additional rates under the Form 1240, the cost base filing, and they would be denied the increase that corresponded to the basic cable portion of the upgrade. All portions of the upgrade related to tbe expanded basic services is what Cox would be allowed to charge until the FCC said otberwise. Councilmember Moot asked if their target rate was $28, why were we nOW in the position of possibly accepting a rate bike as higb as $30. Mr. Young explained the reason the option was recommended is because it gave us some certainty that the rate is justified. To this point, we operated with somewbat incomplete information as to what the appropriate criteria was to determine bow mucb of the upgrade sbould be allocated to existing customers and existing cbannels. Cox came up with a formula working backwards from the $28.95 rate to arrive at a 43 percent rate, and while that migbt seem on the surface a little more reasonable than the initial proposal of 80 percent, it is still not a rate that we bave enougb information to know wbether it is appropriate or not. For that reason, staff recommends that we proceed with a complaint to the FCC sO they can determine the exact percentage. Councilmember Moot said the wbole purpose of the Telecommunications Act was to get tbe federal government out of the regulatory business and try to get these matters resolved at a local leve\. The two-year costs of Cox's appeal would be paid, the FCC would incur costs, and those costs would be passed rigbt back to the taxpayers. He questioned going through two years' of appeals if the amount of money was not significant, and we were close to bandling this matter without having to bump it to a higher leve\. Councilmember Rindone said eacb $1.00 difference in the rate is bundreds of thousands of dollars in consumer payment fees, and so what might initially appear to be 20, 40 or 65 cents does not appear to be significant, but it is, particularly in Cox's viewpoint of that number times the number of subscribers eacb montb. You would look at somewbere in excess of $400,000 for each $1 cbange in the rate for subscribers. Councilmember Moot said it was definitely major dollars to Cox. He was looking at it from tbe individual tax payer's perspective, who would indirectly pay the cost of this appeal. We need to develop an ability to resolve these issues at the local level, because if we want to reduce the size of government and keep taxes down, we are going to bave to buy into the philosopby of the Telecommunications Act. Councilmember Rindone asked wbat was tbe responsibility of Council, as a local entity, to look at the base rate and scenario. The fact that it may be two years' backlog is an issue tbat is unfortunate for tbe applicant, because they would not know bow the FCC would rule, and the potential of having to pay back not only the rates that may be overcharged but also the interest. Ms. Teets said sbe was not aware of the interest rates. Sbe agreed with Council tbat Cox wanted to avoid a complaint being filed. Initially, Cox's rate was 80 percent; wben they received the City's draft complaint, the rate was reduced to 73 percent. In the move from 80 percent to 73 percent, there was a 65 cent drop in the rates per month. In bopes of avoiding a complaint and not baving to bounce this up to the federal level, Cox furtber reduced it to 43 percent. In terms of where staff and the consultant are, they started at 33 percent and ended at 33 percent. This is one of the reasons that a compromise was not made. If there was a way to avoid the complaint, Cox would like t? do that, but felt they negotiated in good faitb and moved the allocation down. Mr. Young concurred that Cox worked in good faith with staff on this, and staff tried to present some alternatives that migbt accomplisb Cox's priorities in other ways. The staffs viewpoint was not really from a negotiatioI perspective, but from a justifiable cost perspective. Since we are operating under somewbat incomplete information it was the basis of the recommendation for referral to the FCC. Councilmember Alevy asked if this particular filing involved all of the paid cable subscribers or just a select fe' that get extended cable, premium channels, etc. Ms. Teets answered the Form 1235 filing involved upgrading the network in the Cities of Chula Vista, Imperi Beach, National City, and Santee, and sbe was not aware of any other cities tbat took action. ~ 1-5 Minutes Ootober 22, 1996 Page 6 Councilmember Alevy indicated he wanted to see what other cities were doing before making a decision. He was concerned that we might do something other cities weren't doing, and charge more or less than others in the community. He did not want to see our citizens pay more than what others paid. Mr. Young stated the upgrade that took place for the four cities resulted in an initial increase on 511196. Cities have 180 days after the rate increase to file a protest with the FCC, after first giving Cox 30 days' notice. Chula Vista was the only city to file notice with Cox; however, we have been working with the other cities. We were participating jointly in the study by Public Knowledge, and those cities and Chula Vista shared the information that came from the study. At this point, the other cities have not decided to go forward with any rate complaints; however, they could still file rate complaints in the future as Cox made further increases in their cable programming service rates. Councilmember Rindone said he read that the other three cities missed the 180-day deadline, so it locked in the new market rate for those cities. We have a responsibility to protect the interest rates of our constituents and rate payers, and if that is justified, then that is part of the process until the FCC gets it corrected. Councilmember Moot stated the issue was the ability of Cox to recoup a capital outlay they made. Most businesses who make capital outlays recoup their cost by raising the cost of the product or cutting back services. There is a deviation from the norm here and the difficulty is finding an appropriate percentage. He asked if there was a policy staff looked at in trying to determine the appropriate level. Mr. Young answered yes, one way of looking at it would be the upgrade from 450 megahertz to 750 megahertz. Cox made a 300 megahertz improvement in their system and have so far activated one-third of that. One way of looking at it is if they activated one-third of the system, only one-third of the cost should be passed along at this time. When the rest of the system is activated and as new channels and services are added, those services should then bear the cost of the upgrade. Councilmember Padilla stated with regard to the primary upgrade-related increase, there has been some mutual understanding about some of the things both parties should consider in arriving at a percentage. He was not going to try to quantify what the cost to the rate payers sbould be with sending this to the FCC. He asked how long would it last, and what would it cost, because the rate payers may pay associated costs with an FCC involvement anyway. There is also the issue if it turns out the rate is not justified and the rate payers bave been paying it in the interim, they would get refunded. Mr. Young said in teons of saying there was no movement, Cox bas made some movement in their position, and the movement staff tried to make is in terms of presenting alternatives that do not commit, from a policy perspective, as to whether one percentage seems appropriate or not. There still exists the uncertainty whether 43 percent is justified, or whether 43 percent is close enough to what might be justified. Councilmember Padilla asked what did Council need to know in terms of tools and resources to agree with Cox to come to a determination about whether or not that is an appropriate rate. If there is room for movement, we need to make it happen before going to the FCC. If there isn't room for movement, we need to know the parameters are agreed on and disagreed on, and the rates are understood and disagreed to before going to the FCC. Ms. Teets commented that Cox moved from 80 percent to 73 percent, and then to 43 percent. In discussions with the FCC, they gave an unofficial response that Cox met the criteria for the Form 1235 filing. The criteria would be channel additions and improvement to the signal quality, which they have met by upgrading the signal from a 45DB to a 48DB. Prior to the upgrade, Cox averaged close to 15,000 hours of customer outages, and after the upgrades, Cox averaged 700 hours; it has been a marked improvement in reliability, and those are some of the criteria used to come up with the allocation. In Cox's discussion with the FCC, they wouldn't comment in terms of what the exact number was because it would be something they would look at if there was an official complaint. The FCC also said it was their preference for a local settlement to be reached. If a settlement could be reached that did not go below 43 percent, Cox was open to that. Mr. Young stated there are actually a number of different criteria that Cox and staff looked at in terms of the changes in the system. As Ms. Teets referred, channel line-ups and additional channels are some of tbose criteria; others include how the quality of signal or reliability of the service changed, and the percentages those criteria have dramatically changed. What staff is looking at, and what our consultant advised we look at, is to ask the FCC bow these criteria should be factored in, how that rate is arrived at, and what rate is passed along to the customers. We have a consultant hired by a group of cities to review the appropriateness or inappropriateness of the forms, as filed / -{p Minutes October 22, 1996 Page 7 by Cox Communications. In two of those cases, we have already agreed they were properly filed. In this case, the consultant determined there were potential errors in the way Cox filed their forms. The consultant would be qualified to do a more in-depth study of wbat the exact rates sbould be cbarged in a situation like this, In talking with FCC representatives, it is something they bave not dealt witb yet. It may be similar to previous rate studies, but it is something that will require more in-<lepth study. MSUC (RindonelHorton) to approve staff recommendations listed as alternative #1. 13. PUBLIC HEARING CONSIDERATION OF EST ABLISHING UNDERGROUND UTILITY DISTRICT l\'UMBER 129 ALONG OTAY LAKES ROAD FROM RIDGEBACK ROAD TO APACHE DRIVE - Public bearing is to determine wbetber the public bealth, safety, or general welfare requires the formation of an underground utility district along Otay Lakes Road from Ridgeback Road to Apacbe Drive. Staff recommends approval of resolution. (Director of Public Works). RESOLUTION 18467 ESTABLISHING UNDERGROUND UTILITY DISTRICT NtThffiER 129 ALONG OTAY LAKES ROAD FROM RIDGEBACK ROAD TO APACHE DRIVE AND AUTHORIZING THE EXPENDITURE OF UTILITY ALLOCATION FUNDS TO SUBSIDIZE PRIVATE SERVICE LATERAL CONVERSION This being the time and place as advertised, the meeting was declared open. Mayor Horton commented there was reference to a section of Otay Lakes Road that is classified in the General Plan Circulation Element as a six-lane prime arterial and is designated as a scenic higbway. From a safety perspective, she requested staff look at the conversion district, because it was dangerous coming down that road with the level of gravitation. RESOLUTION 18467 OFFERED BY MAYOR HORTON, reading of the text was waived, title read, passed and approved unanimously. 14.A. RESOLUTION 18416 APPROVING A RESOURCE CONVEYANCE AGREEMENT FOR THE OTAY RANCH SPA ONE, TRACT 96-04 - (This is a related item. but does not reouire a puhlic heann2) B. RESOLUTION 18417 APPROVING AN ThTl)EMNIFICATION AGREEMENT WITH VILLAGE DEVELOPMENT FOR TRACT 96-04 - (This is a related item. but does not reouire a puhlic heann~) C. PUBLIC HEARING PCS 96-04: CONSIDERATION OF A REVISED TENTATIVE SUBDIVISION MAP FOR THE OTA Y RANCH SPA ONE, TRACT 96-04 GENERALLY LOCATED SOUTH OF TELEGRAPH CANYON ROAD BETWEEN PASEO RANCHERO Al'\TI) THE FUTURE SR-125 ALIGNMENT Al'\TI) EXCLUDING 288 ACRES IN ASSESSOR PARCEL NUMBER (APN) 642-060-11 AND A PORTION OF APN 642-080-11- Adopt a Second Addendum to FElR 95-01 and recertify FElR 95-01 and the First Addendum for the Otay Rancb SPA One and Tentative Subdivision Map for Village One and Pbase I-A of Village Five of the Otay Rancb SPA One, Cbula Vista Tract 96-04, in accordance witb the findings and subject to the condition contained in the in the draft resolution. Staff recommends approval of the resolutions. (Otay Rancb Manager) Continued from the meeting of 9/17/96. D. RESOLUTION 18398 ADOPTING THE SECOND ADDENDUM TO AND CERTIFYING FINAL ENVIRONMENTAL IMPACT REPORT FElR 95-01 (SCH #95021012) AND FIRST ADDENDUM READOPTING THE STATEMENT OF OVERRIDING CONSIDERATIONS Al'\TI) THE J\fiTIGATION MONITORING AND REPORTING PROGRAM FOR THE FElR Al'\TI) APPROVING A REVISED TENTATIVE SUBDIVISION MAP FOR PORTIONS OFTHEOTAYRANCHO SPA ONE, CHULA VISTA TRACT 96-04, AND MAKING THE NECESSARY FINDINGS AND DENYING APPROVING OF ALTERNATIVE TENTATIVE MAP PROPOSALS MSUC to continue to 11/12/96. 15. PUBLIC HEARING ADOPTING OTAY RANCH PRE-Al'\'J\'EXATlON DEVELOPMEl'.'T AGREEMEl\'T WITH VILLAGE DEVELOPMEl\'T - An amendment to the development agreement to further guarantee infrastructure improvements where the developer wants to create parcels for sale prior to finalizing the final subdivision map. The amendment also addresses future problems witb regard to any debt payment tbat migbt be levied to make public improvements or sbould development be only partially completed on any particular project / _ r} Fcd:ra! Communi::a~io;".s Com:o,i~>io:", \\'a.>hi;-;g:o:'l. D.C 20554 ATTACHMENT 2 Abbreviated Cost of Service Filling For Cable Network Upgrades Part II. Upgrade Revenue Requirement Computation lal Ibl lei BST CPSTs BST CPSTs 9.30% 597.601 248.336 1- 2. Net Upgrade Rate Base (Worksheet A, Line 4el Re:urr. on Investment a. Rete of Return Percentage b. Computed Rewrn on Upgrade Ra:e Base (Line 1 x Line 2al ." A.~_~,'~' .. ~ :. '""..."l:. - -~. . ""';i'-'";: .~.~.~. .:"~. ~~ -- - 11.25% 3. Allowance for Income Taxes 8 federal Income Tax Rate b. S':.a':.e Income Tax ?ate c. Computed Relurn on Upgrade Rale Base (Line 2b) j,::'-" ~~':'-':~~;~~ :~~.%r~. d. Interest expense rel"ned to upg,ade (Worksheet A, Line Sel e. Dis-.ritlU'tions (Ncm.C Corp. Filers Only) i. COn1ritJulions (Non.C Corp. filers Only] '._~' .,,~-.c":l-::L .....___ -.~,,' ..........-.. ~...~-. .. g. Return Amount swbject 10 income lax h. Income Tax Alio\".'a:;ce ProJe:te: Net Impact of Upg~a:le C7"', Oper2,:in; Expe::ses (V,Iorkshee'i: A. Line oel Ne'i: Revenue and lil:c:-:;e Adjus:meil:s ReI2-:.e: to Upgrade [V\/ork.sheet A, ~ine 12el "To:al Upgrade Reve:"lue ReQui,em€:"\'i: (~ine 2 - 3'" t.... 5) 3~9.26-l 795.546 _......." c' __..___! ....~_...... ..r~';,;, -. ~ .r~,,; :::-~::~ ...~ :.;,:": ~ ... - . ,,- --, I __ I.~ I 586.: . ~ ...-r.._ 4;9.9'3 I 0\ 1.3 1~.9'; I 1.0->7.' ...\ " " - . . ...- . " . '. ,. -- ,. . .'.' - _.. _........._ ,u_. -... -.-.----- c.,., -p.?""~...~.. -."!...-::.-, ::..... --- - - .--. .-- ..:r.:..:.~ ;~r!.-~ ~'--'.~.-~":':. e. ~:-;...i"~:.::'--:: ::';'.::, . ._~-.-'.. . =-,~._._" ." .' ::>ar-: ::1. Ali~:2:lon of Upgr2:J€ i=:.eve!'lue Re::.J:remenl ~: E2sic and Cable Programming Service Tie~s i _ Up;r2:::le Revenue Re:::'.;ireme:lts . (:;an 11. Line 5) 2_ Nu....:,er of Subscribers 3_ .L.:-.:"1:.Jal Revenue ReoulTemem Per S:.;b (Line 1 I Line 2\ 4. t.~01"'..:hly Network Upgrade Add-on [Line 3 I i 2) lal I Ibl lei BST I CPST" , I CPS T " 2 Tota! 1.l1~.9~; I 2.995.152 I 4.31 Q.CIJ~ 63.229 1 61."0 I 20796; I ~S.3IJ3 I I 691t--:-:;' 1.7330 I ' 0309 I I 5.,&-l0 5. Sele:ted method of subscriber recovery: (Check One) Provide des::ri?1i::m for allocation of CPSI Revenue Requirement 10 CPS Tiers: CERTIFICATION STATEMENl WillFUL FALS: S7A,EM:N,S MAKE DN THIS FDRM ARE PUNISHASLE SY FINE AND/DR IMPRISDNMENT (U.S. CDDE "TITLE 18. SECTIDN 1001). A"DIDR FDRFEITURE IUS CODE. TITLE 47. SECTIDN 5031. I ::eni1y that ,he statements made in this form are true and correct to the best of my knowledge and belief, and are make in good falth. Name and 'TItle of Person Compleiing this Form: Sign tute:' "\ I/i: Telephone Number \' (619p66.5~ Il.< .d, \ Willi1\m Fituimmons. Director of Finance & Administration Date: 3115'96 -;7- d-I ~ ;;f... l.~ FCC FCl~ 1':::~ rllO'= ~.~~" ~O.. ~__ - ., . ~__.~~J' Abbreviated Cost of Service Filling / For Cable Network Upgrades part II. Upgrade Revenue Requirement Computation r) ,. Not Upgrado Rilla a..o (Wo,kshoot A, Uno ~e) 2. Rerurn on InvGGtment (a) (b) J. '. Raw of Return Percentage b. Ccmputod RllIum on Upgrade Rato Se.o IUne , x Une 2.al Allow:mee for Income Taxes a. Federal Jncome Tax Rate b. Stot. Income Tex R.,o e. CompUled Roturn on Upgrade Rato BaGe (Line 2b) d. Interest expo""o rol.rod to upgr.de (Wor..heet A, Line ge) e. DlstribUlions INon-C Corp. File.. Only) f. Conmbutlon. 1N,?Rf"~orp. File.. ?~~:!-~ g. Return Amount :~~bject to income tax - ~ h. Income Tax Allowance Projeotod Net Imp.ct of Upgr.de on Operllling Expenses CWorkcheo'l: A, Une Be) NBt RevenuI and lneorns AdjlJltmsnu Rololed to Upgrade IWorkshoot A, Line 1 2~J Total UPllrade Revenuo Requi",mMt (Line 2"'3+4+51 423.084 g~l>> 'C 4. 5. 6. Part III. Alloeetion of Upgrede Rovenue Requirement to Besic and Ceble Progremmlng Ber"iee Tiara ;:11::' . . ' , .:' -tll' , 1. Upgrade R~nue Roquirements . (Part II. Line 6) 2. Number of Sub.crlbers 3. Annuel Rovonue Requirement Por Bub (Une , I Une 21 ~. Monthly Network Upgrade Add-on lUno 3 J '21 ."i, . (a) lbl (eJ -, BST cm. , CPST . 2 Tote' 1.206,808 2,619,241 3.826,049 I : 63.229 61,920 "il , 19.0863 42,3004 61.3867 1.590S 3.S2S0 5.1156 . Provide descriplion for allocBtion of CP5T RevBnue Requirament to cPt; :Tieno: 5. Selectod method of eub..riber recovery: (Check Onel. CERTIFICATION STATEMENT <\' ,.,,: ; WILLFUL FALSE STATEMENTS MAKE ON THIB FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENT (U.S. CODE TITLE ,e, SECTION 'OOlJ. ANDIOR FORFEITURE (US CODE, TITLE 47. SECTION 503). I ""rtify that tho stet..mems made in thla form aro lrue and correct Ie the ~ of my knowledge and Name and TItle of Person Completing thi, Ferm' ,Sign.turo , . Wl1llam Fltzalmm..... Di_r efYi..... 01: Admi.lstn6o. ", ' Dau: 3115/96 ) ./ Pego~ig // J-:2 PCC Porm 123S Pcbrumy 1996 ii-22-96 A09:46 IN Before the Federal CommunicatioI15 Conunission Washington, D.C. 20554 ATTACHMENT 3 In the Matter of: ) ) Cox Communications San Diego, Inc. ) ) Appeal from a Local Rate Order of the ) City of Chula Vista, California ) Regarding Rates for Basic Service ) and Equipment ) Chula Vista, CA (CA0329) APPEAL OF COX COMMUNICATIONS SAN DIEGO. INC. COX COMMUNICATIONS SAN DIEGO, INC. By: Peter H. Feinberg, Esq. DOW, LOHNES & ALBERTSON A Professional Limited Liability Company 1200 New Hampshire Ave., N.W. Suite 800 Washington, D.C. 20036 Peter C. Godwin, Esq. 444 N. Michigan A venue Suite 3600 Chicago, IL 60611 Its Attorneys November 21, 1996 3-1 TABLE OF CONTE1\'TS SUMMARY ............................................... 1. Introduction and Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 II. Standard of Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 5 m. The City Erred in Disallowing All Form 1235 Upgrade Costs . . . . . . . . . . . 7 A. Cox's Upgrade Is "Significant." . . . . . . . . . . . . . . . . . . . . . . . . . 7 B. Cox's Upgrade Benefits Customers Through Service Improvements 8 C. Cox's Upgrade Cost Allocation Method is Reasonable ........ 13 IV. Conclusion .................................. 17 7. - ') J c7' SUMMARY The City of Chula Vista (the "City") misapplied the Federal Communications Commission's (the "Commission's") regulations regarding the recovery of the costs of significant cable system upgrades by disallowing Cox Communications San Diego, Inc. 's ("Cox's") proposed rate adjustments made pursuant to FCC Form 1235. Despite the substantial and tangible benefits that the upgrade provided to basic cable subscribers, the City refused to allocate any of the costs of its fiber rebuild to its regulated services. By focusing on the fact that Cox's system upgrade did not result in additional channels on the basic service tier ("BST") , the City altogether ignored the significant benefits the upgrade provided to subscribers to regulated services and rejected Cox's allocation of a portion of the upgrade costs to the basic cable service tier. Cox demonstrated that the upgrade had improved signal quality and system reliability for all services, including basic cable service, and the City's refusal to allow Cox to recover any of the costs of the system upgrade in its basic cable rates requires that the Commission reverse and remand the City's Order. The City also erred in rejecting Cox's allocation methodology to apportion upgrade costs because Cox had added some channels under the "caps" method. Under the Commission's regulations, operators may account for upgrade costs under the Form 1235 in addition to any adjustments made pursuant to the benchmarkJprice cap rules. 3-3 -1- Before the Federal Communications Commission Washington, D.C. 20554 Appeal from a Local Rate Order of the City of Chula Vista, California Regarding Rates for Basic Service and Equipment ) ) ) ) ) ) ) ) Chula Vista, CA (CA0329) In the Matter of: Cox Communications San Diego, Inc. APPEAL OF COX COMMUNlCA nONS SAN DIEGO Cox Communications San Diego, Inc. ("Cox"), by its attorneys and pursuant to Section 76.944 of the Federal Communications Commission's (the "Commission's") rules, 47 C.F.R. ~ 76.944, hereby files this Appeal of a rate order (the "Order") of the City of Chula Vista, California (the "City") which disallowed Cox's proposed rate adjustments substantiated by FCC Form 1235 in connection with a system upgrade, despite the substantial and tangible benefits that the upgrade provides to basic cable subscribersY 1. Introduction and Background. This appeal arises out of the City's determination that the rate increase proposed by Cox was not justified by the Company's Form 1235.' rate filing. Cox recently substantially 11 The Order, Resolution No. 18447, is anached herewith as Exhibit 1. 'lJ Abbreviated Cost of Service Filing for Cable Network Upgrades. 3-L\ - 2 - upgraded its cable plant serving the community of Chula Vista, California, as well as other neighboring cable communities se~ed by the system, including Imperial Beach, National City, and Santee (the "Chula Vista Upgrade"). The Chula Vista Upgrade was pan of an ongoing upgrade of Cox's system serving the City of San Diego and surrounding communities. Cox expended approximately $27 million in 1994 and 1995 for the Chula Vista Upgrade, which consists of 740 miles of cable plant serving 63,782 subscribers including . 34,821 in the City of Chula Vista itself. Pursuant to the Chula Vista Upgrade, system capacity was increased, on a staggered basis, from 300 MHz to 450 MHz to 750 MHz. The entire system is planned to be upgraded to 750 MHz. All subscribers in the San Diego area currently receive virtually the same channel lineup. However, some customers, such as those in Chula Vista, still pay lower rates for the same services because, when rate regulation was implemented, the upgrades were in different stages.~1 In Chula Vista, for example, the system upgrade had only progressed to the 450 MHz level of service and Cox accordingly filed rate forms reflecting only 450 MHz service. 'if Because various ponions of the system had different channel capacities, certain subscribers paid lower rates because they received fewer services than the other ponions of the system that had been rebuilt. The Commission has previously recognized such dual rate strUctures. See Horry Telephone Cooperative, Inc., 10 FCC Rcd 2110 (1995) (permitting dual rate strUcture in connection with system rebuild). Of course, once a dual rate structure is established in a single franchise area, subscribers can be switched over to the new rate strUcture as they are convened to the rebuild. However, this does not work where, as here, rate and capacity differentials exist between two communities served by the same system. 2 .=:- :..J-.J - 3 - Not only has this been confusing to customers, it has not permined Cox to fully recover the costs of the added services that it is providing to customers through the upgrade in Chula Vista. As a practical maner, Cox should be permined to charge at least the same rates in Chula Vista for a 750 MHz system as in other areas where the system has been rebuilt to 550 MHz or 750 MHz, and should not be prohibited from doing so simply because of the timing of the upgrade and because it was only able to me 450 MHz rate forms when rate regulation was fIrst enacted. Absent the ability to use a Form 1235 or Form 1220 to implement the higher rates in upgraded areas, mere chance dictates which cable communities are eligible to pay upgraded rates. The upgrade in Chula Vista occurred in two stages. Between 1990 and 1991, a fiber optic network was constructed which, as noted, increased capacity to 450 MHz and decreased the amplifiers in cascades serving the city from over 30 to 16. ~I The second phase of the upgrade increased system capacity to 750 MHz, adding yet additional fIber to the system, and increased the number of nodes from 9 (serving about 12,000 homes each) to 143 (serving fewer than 800 homes each). The attached declaration of Stephen Gautereaux, Vice President Technical Development of Cox referenced below, notes that the upgrade provided all subscribers substantial improvements in service quality and reliability. The substantial expense incurred by Cox in connection with the system upgrade was not recoverable under the Commission's standard benchmark regulations, which compute 1.1 See Exhibit 2 (Declaration of Stephen Gautereaux at 1 5.a.). 3-0 - 4 - maximum permitted rates for regulated services based on a survey of systems from 1992. The Commission's new Form 1235, however, permits Cox to recover upgrade costs. Accordingly, Cox f1led FCC Form 1235 with the City to recover the costs of the upgrade)' Additionally, subsequent to the FCC Form 1235 f1ling, Cox also filed FCC Form 1240, which reflected cost-based adjustments to the basic tier rateY On August 27, 1996, Jay Smith, representing the City's consultant, Public Knowledge, Inc., recommended that the City approve Cox's Form 1240 BST rate of $9.74.2/ However, Public Knowledge disputed the rate adjustment proposed in Cox's Form 1235, and the City followed Public Knowledge's recommendation. Public Knowledge disputed Cox's Form 1235 rate adjustment for three principal reasons. First, the consultant concluded that because two-thirds of the upgrade (200 MHz of the 300 MHz) will not immediately be used to provide regulated services, 66.67% of the upgrade costs should be excluded as not "used and useful. ,,~I Second, the consultant found that Cox's allocation of upgrade costs based on channel counts was improper because no 'il Exhibit 3 (Cox's FCC Form 1235 Filing). QI See Exhibit 4 (Cox's FCC Form 1240 Filing). II See Exhibit 5 (Smith Letter at 1-2). This appeal does not concern that form because the City approved the rate computed under Form 1240. ~I Id. at 2. As discussed below, Cox excluded 27 % oLthe upgrade costs, reflecting the fact that 550 MHz of capacity of a total 750 MHz was then in use. 3-1 - 5 - channels had yet been added to the BST in connection with the upgrade.2' Third, the consultant found that Cox had already recovered its full $1.20 cap (plus programming costs) for "going forward" channels added before the filing of FCC Form 1235 and should not be permitted a "double recovery" of such channels through Form 1235.lQ' Therefore, Public Knowledge recommended that the City deny the Form 1235 rate adjustment in its entirery.)lI Based on this recommendation, the City adopted its Order approving Cox's Form 1240 rate adjustment and denying, in its entirety, Cox's Form 1235 rate adjustment. Cox now files this Appeal of the City's Order. n. Standard of Review, The City's Order should be reversed and remanded because the City declined to attribute any justifiable costs of the upgrade to the basic service tier and unreasonably rejected Cox's proposed method of cost allocation. The Commission provides franchising authorities with the discretion to resolve questions or ambiguities regarding the rate-setting 2.1 ld. at 2-3. 10/ ld. at 3. 11/ Though Public Knowledge also noted that Cox initially did not reflect projected revenue for the activated capacity from, for example, advertising revenue, Cox subsequently revised its Form 1235 to submit relevant information in this regard. In addition, when submitting the revised Form 1235, Cox also revised its cost allocation to exclude 27 % of the upgrade costs, reflecting the fact that 550 MHz of capacity of a total 750 MHz was then in use. 3-3 - 6 - process, and defers to their decisions if supported by a reasonable basis.l1/ In adopting a rate order, however, "a franchising authority must make a reasoned decision based on the record. "11' In this case the record reflects that the City abdicated its responsibility when it denied the rate increase because it did not take into account the evidence which the Company presented. Second, when reviewing a local franchising authority's rate decision, the Commission must determine whether the franchising authority followed statutory and regulatory requirements, and whether its decision is fully consistent with the Commission's rate regulations and policies.~1 The Commission gives no deference to the franchising authority's interpretation of the Commission's regulations.lll The City chose not to follow the policies set out in the Commission's order adopting interim cost of service rules which recognized that operators could use Form 1235 to substantiate costs incurred in improving signal quality 12/ Third Order on Reconsideration, 9 FCC Rcd 4316, 4345 (1994). 13/ Report and Order and Further Notice of Proposed Rulemaking, 8 FCC Rcd 5631, 5715 n.337 (1993). 14/ See, e.g., Century Communications Corporation d/b/a Yuma Cablevision, 10 FCC Rcd 11080, 11080 (1995) (citing Report and Order, 8 FCC Rcd at 5731 and Third Order on Reconsideration, 9 FCC Rcd at 4341). 15/ Cablevision Systems of Southern Connecticut, Limited Partnership, 10 FCC Rcd 1163, 1164 nn.12, 14 (1995) (rejecting Connecticut's interpretation of the benchmark regulations); see also Vantage Cable Associates, L.P., 10 FCC Rcd 1609, 1610 (1994) (rejecting as unreasonable a franchising authority order that misinterpreted the Commission's external cost pass-through regulations). 3- (.1 i - 7 - and system reliability .~' Because the City failed to meet these two standards, its Order must be reversed and remanded. III. The City Erred in Disallowing All Form 1235 Upgrade Costs. The City's Order disallows all of the costs associated with Cox's system upgrade. This fmding is based on a flawed analysis of Cox's Form 1235 filing by the City's consultant that failed to apply the appropriate rules and policies to the system's upgrade rate justification. A. Cox's Upgrade Is "Significant." The Commission's Interim Cost Order implemented an abbreviated cost of service alternative using the Form 1235 for" significant prospective capital expenditures used to improve the quality of service or to provide additional services. "lJJ The Commission determined that this would "provide an appropriate way to implement the goals of the Cable Act of 1992, to promote the availability of diverse cable services and facilities, encourage economically justified upgrades, and reduce regulatory burdens, while ensuring reasonable rates for regulated services. "1!' Five factors determine the permissibility of network upgrade costs for a cable operator to receive such rate increases: 16/ Repon and Order and Funher Notice of Proposed Rulemaking, 9 FCC Rcd 4527 (1994) ("Interim Cost Order"). 17/ Id., 9 FCC Rcd at 4672. 1li/ I d. at 4674-4675. 2-)0 ~..J - 8 - (1) that the upgrade be "significant" and require added capital investment, such as expansion of bandwidth capacity, conversion to fiber optics or system rebuilds; (2) that the upgrade actually beIlefit subscribers through improvements in the regulated services subject to the rate increase; (3) that the upgrade rate increase not be assessed until the upgrade is complete and providing benefits to subscribers of regulated services; (4) that the operator demonstrate its net increase in costs, taking into account current depreciation expense, projected changes in maintenance and other expenses, and changes in other revenues; and (5) that the operator allocate its costs to ensure that only costs allocable to subscribers of regulated services are imposed upon them.12/ The City did not dispute that Cox's rate filing satisfies the first, third, and fourth factors of the Commission's test. Clearly, Cox's $27 million upgrade is "significant" by any standard. The capital investment is substantial, and the upgrade increases bandwidth to 750 MHz and entails a complete system rebuild.;1Q/ As discussed below, the upgrade replaced coaxial plant with fiber optics, thereby substantially improving signal quality and system reliability, thus benefitting regulated customers. B. Cox's Upgrade Benefits Customers Through Service Improvements. Although the City acknowledged that Cox's upgrade was substantial, it was unwilling to conclude that the upgrade warranted an adjustment of basic service rates because Cox did not add channel capacity on the basic service tier, and it was unable to reach a conclusion regarding Cox's showing of enhanced service quality. The City also disputed the methodology that Cox used to allocate costs of the upgrade to the basic service tier. 19/ Id. at 4675-676; Form 1235 Public Norice. 20/ Similarly, neither the City's Order nor the consultant's analysis dispute that Cox's upgrade complies with factors three and four. 3- 1\ - 9 - The consultant states that because the incremental increase in regulated basic channels was zero, and because no channel~ere added to basic, Cox has not demonstrated that the upgrade actually benefits subscribers: . . . there is no demonstrated benefit to basic service subscribers since the channel allocation for the basic tier was not changed by the upgrade. Therefore, none of the upgrade costs should be allocated to basic. Further, the allocation between CPS and other services should be based on the channel additions directly associated with the upgrade. . . .".w This position clearly is contrary to the Commission's rules and policies regarding network upgrade rate justifications as discussed in its Interim Cost Order and its Final Cost Order. In fact, nowhere in the cost of service rulemaking proceedings does the Commission enunciate such a policy. Indeed, if cable operators were required to add channels as a condition to implementing rate increases under the 1235 methodology, it is reasonable to assume that such a policy would have been clearly stated by the Commission.ll1 By disallowing any allocation of costs to regulated services, the City's Order contravenes the Commission's policy that a total disallowance of costs is unreasonable if the record demonstrates that some costs are justified.IlI 21/ Exhibit 5 (Smith Lener at 2-3). 22/ It is also relevant that the Commission's 20 cent price cap methodology was based on historical survey data from 1986 to 1991. During that period, very few cable operators were constrUcting fiber plant, and therefore the cap simply could not incorporate "substantial" upgrade costs. Sixth Order on ReconsideraIion, Fifth Repon and Order, and Seventh Notice of Proposed Rulemaking, 10 FCC Rcd 1226, 1300 (1994). 23/ See Falcon Cablevision, " 12-13; Tele-Media, , 9, n.14; Novato Cable (continued.. .) 3-\.).. - 10 - Cox demonstrated to the City that the upgrade will provide substantial benefits to Cox's customers through improvements to regulated service. It submined during the course of discussions with the City the certification of the system's Vice President of Technical Development which outlined the technical improvements made possible by the upgrade.~! These included the construction of a fiber-rich HFC network, which is more expensive but substantially more reliable with bener picture quality than the previously-used predominantly coaxial plant. The fiber configuration under deployment is redundant, and thus a failure of one loop does not result in loss of service to customers. The upgrade also decreased the number of required amplifiers, increased the number of fiber nodes from 9 to 143, and dramatically decreased total customer outage hours from 14,909 hours per month to 700 hours per month. Each of these technical improvements also enhanced the quality of the signal received by subscribers. ~/ 23/ (. ..continued) Company, 10 FCC Rcd 5158. 24/ See Exhibit 6 (Letter from William Fitzsimmons to Jay Smith). In an effort to resolve the issues which are now on appeal, these discussions with the City also included two telephone conferences with representatives of the City, Cox, and Hugh Boyle, Chief Accountant of the Cable Bureau's Finance and Compliance Division in October, 1996. 25/ See Exhibits 6 (Letter from Fitzsimmons to Smith at 4), 2 (Declaration of Stephen Gautereaux at " 5, 6). ;;? - I ;<, J ~ - 11- Curiously, the city ignored the detailed infonnation that was provided by the system regarding the enhancements in signal quality and reliability.~ The City stated that "[t]he detennination of an appropriate price for these improvements is a matter to be decided by a detailed rate study, whether by the FCC, Cox, the City or a paid consultant" and that "to determine whether this rate is appropriate would entail a more detailed study of the service quality and reliability factors and overall rate filing. "12/ But the City's responsibility was not to throw up its hands, but to consider the evidence and infonnation that was presented and reach a detennination. Cox submits that the real reason the City failed to give any weight at all to the evidence of enhanced signal reliability and quality that resulted from the rebuild was because it concluded that, absent the addition of any channels to the basic tier, Cox was not entitled to any credit for the rebuild notwithstanding demonstrable improvements in service. W 26/ The City's conclusion in its Council Agenda Statement that data for service outages was only available for a short period of three and one-half months, and that therefore seven year nationwide data might be more appropriate, is unreasonable. As the declaration of Stephen Gautereaux demonstrate, after the 750 MHz upgrade was completed, the total customer outage hours was dramatically reduced. See Exhibit 2 (Declaration of Stephen Gautereaux at , 5d). This was the best and most accurate demonstration that the upgrade had substantially improved the quality of service, and the City failed to give it any weight whatsoever. A requirement to wait seven years for reliable data would mean an operator could never show improvements to the system unless it added channels - an outcome clearly not intended by the Commission, as discussed supra. 27/ See Exhibit 7 (Council Agenda Statement at 8-9). 28/ This position was initially expressed by the City's consultant in its letter to Mr. Gerald Young of the City of Chula Vista dated August 27, 1996, and in the conversation that (continued...) 3-14 - 12 - To reflect the costs attributable to enhanced signal quality in the regulated rate-base, Cox adopted a reasonable methodology, asserting that only 73 % of the upgraded plant - 550 MHz of a total 750 MHz system - is "used and useful." The signal quality and service enhancement affects all customers over all services delivered, both regulated and unregulated services. Because the entire system was replaced, it was reasonable for Cox to treat all active capacity as an "improvement," rather than just the increase in capacity from the previous system (a 450 MHz system) to the new system (a 750 MHz system of which 550 MHz is active). Therefore, Cox allocated costs based on total channels on the system, not JUS! the channels added as a result of the upgrade. This was explained in detail to the City and to the City's consultant in an October 10, 1996 letter to Jay Smith of Public Knowledge.r!1 Notwithstanding this explanation, the City adopted the consultant's conclusions, which were inconsistent with the Commission's regulations, and disallowed the rate adjustment represented by the upgrade in its entirety .:illl As the Commission previously has noted, a franchising authority may not entirely disallow a regulated rate, permissible costs, or assets in an operator's rate base if the record supports the rate or inclusion of at least some of the claimed costs or assets. The Commission, for example, has held on several occasions that 28/ (.. . continued) the consultant had with Mr. Boyle. 29/ See Exhibit 6. 30/ See Exhibit 1 (Order at 1). 3-1'5 - 13 - the total exclusion of intangible assets from a cable operator's rate base in the context of a cost of service showing when the record supports inclusion of at least some of those assets is unreasonable.:!!1 The Commission also has held that setting rates for regulated installations at zero was unreasonable and inconsistent with applicable regulations.ll' In this case, Cox has presented uncontroverted evidence that the system serving the City's cable customers has realized demonstrable and quantifiable improvements in signal quality and system reliability; neither the City nor its consultant disputed that all customers would realize these improvements. C. Cox's Upgrade Cost Allocation Method is Reasonable. After Cox determined that 73 % of upgrade costs reasonably could be allocated to the provision of regulated and unregulated services, it allocated those costs based on the total channels provided on each tier. But the City's consultant, having disregarded the benefit of the upgrade to basic subscribers, suggested that Cox's allocation of costs among basic, CPS, and "other" services was unreasonable because Cox allocated costs based on total activated channels.ll' The consultant posits two explanations for its conclusion. First, it suggests that 31/ See Falcon Cablevision Petitions for Review of Local Rate Orders of the City of Thousand Oaks, California, DA 96-1485 (reI. Sept. 10, 1996) " 12-13; Tele-Media Company of Western Connecticut Petition for Review of Local Rate Orders of the Connecticut Department of Public Utility Control, DA 96-91(rel. Feb. 26, 1996) , 9, n.14. 32/ See NovalO Cable Company d/b/a Chambers Cable of NovalO, 10 FCC Rcd 5158, 5159 (1995). 33/ Exhibit 5 (Smith Lener at 2-3). 3-\(0 - 14 - Cox may not adjust rates for added CPS tier channels under the "caps" method and also file a Form 1235 to reflect network upgraae costs.~ Apparently, the consultant believes that Cox would recover twice for the same channels.:l2! However, the Commission has stated specifically that the Form 1235 Network Upgrade methodology does permit operators to account for the costs of substantial network upgrades above and beyond any adjustments made pursuant to the benchmark/price cap approach.~! When the Commission adopted an abbreviated cost of service showing for system network upgrades, it stated that, under the new approach: 34/ ld. 35/ "By now claiming the upgrade cost that in part relates to the CPS capacity associated with the 'cap' rate additions Cox would be recovering twice for the added capacity, once in the 'cap' addition and again in the upgrade cost allocated to the CPS tier." Exhibit 5 (Smith Letter at 3). Because the consultant rejects Cox's Form 1235 based, in part, on its concern with this alleged double-recovery for CPS channels added, the matter is properly before the Commission on appeal. 36/ The first benchmark approach was adopted in 1993. See Repon and Order and Funher Notice of Proposed Rulemaking, 8 FCC Red 5631 (1993). The Commission revised its benchmarks and adopted its quarterly price cap methodology (along with FCC Form 1210) in its Second Order on Reconsideration, Founh Repon and Order, and Fifth Notice of Proposed Rulemaking, 9 FCC Rcd 4119 (1994). The annual price cap methodology, for use with FCC Form 1240, was adopted by the Commission in Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992: Rate Regulation, Thineenth Order on Reconsideration, 11 FCC Rcd. 388 (1995). Base rates computed under the benchmark approach are compared to average rates of comparable systems based on certain variables, rather than the pure costs that the system incurs to provide regulated service. Thus, the benchmark does not reflect a specific system's upgrade costs. Similarly, price cap adjustments for channel changes reflect only license fees and permitted per-channel adjustments, rather than the allocated costs of upgrades. ~-1'7 - 15 - . . . operator[ s] would be permitted to set a rate based on two elements. The first element is the benchmark rate, as governed by the Rate Order and the price cap. The second element will be tlle capital improvement add-on. The sum of these two elements will yield the maximum allowable rate that might be charged to subscribers.JlI The Commission reiterated this policy in its order adopting final cost of service rules: "The recoverable amount of such capital improvements may be added to a system's benchmark rate, as adjusted by the price cap, to generate a maximum permitted rate."l!! Thus, it is clear that the Commission intended for operators to recover e>..1emal costs, inflation, and going-forward channel additions under the price caps, and additional upgrade costs under a cost-based approach.-'2! 37/ Interim Cost Order, 9 FCC Rcd at 4676 (emphasis added). 38/ Second Repon and Order, First Order on Reconsideration, and Funher Notice of Proposed Rulemaking, 11 FCC Rcd 2220, 2295 (1996) ("Final Cost Order"). 39/ The Commission's vision of this two-prong rate-setting methodology was fIrst voiced in its cost-of-service notice of proposed rulemaking: We also solicit comment on whether we could establish an abbreviated cost-of-service showing for significant prospective capital expenditures used to improve the quality of service or to provide additional services. Under this abbreviated showing, operators seeking to raise rates to recover the costs of a planned upgrade would submit only the costs of the upgrade. . . . mhe costs of the upgrade would then be added to the rare permitted under rhe benchmark and price cap approach to the extent costs could not be recovered under that approach. Implementation of Sections of the Cable Television Consumer Protection and Competition Act of 1992 - Rate Regulation, Norice of Proposed Rulemaking, MM Dkt. No. 93-215, FCC 93-353 (reI. Jul. 16, 1993) 1 75 (emphasis added). 3- /3 - 16 - As discussed above, the City also erred when it refused to permit Cox to recover for improvements in signal quality ancheliability of the entire system. Cox's allocation methodology recognizes the benefits that the upgrade provides to all subscribers for all services provided, not just newly added services. The City's conclusion that no costs may be allocated to regulated services, therefore, is unreasonable and the City's Order must be reversed and remanded. 3- r c( - 17 - IV. Conclusion. For the reasons set forth herein, Cox respectfully requests that the Commission reverse and remand the City's decision with explicit instructions to conform the decision to the applicable Commission policies and regulations. By: . Esq. ALBERTSON [ d Liability Company . eAve., N.W. . 20036 Peter C. Godwin, Esq. 444 N. Michigan Avenue Suite 3600 Chicago, IL 60611 Its Anorneys November 21, 1996 ;)-",{" -,'X j '-'" <.'^' Federal Communications Commission DA 96-2070 Before the Federal Commuuications CommissIon W..hington, D,C, 20554 ATTACHMENT 4 In the Matter of ) ) ) ) CUID No. CA0329 (ehula Vista) ) ) ) .~,_. ,t__,.~.. Cox Communications Complaint Regarding Cable progr.mming Services Tier Rate Increase ".-", ,. -.---..--.....-........:.;-. :.'_~: ~o~..::'..e.21i~ S!\.....t:"CC: C~B ORDER Adopted: December 6, 1996 Released: December 11, 1996 . ,- . ,. -, By the Chief..Finmci"J. f,nalysis and C-ompiiance DiYision, Cable Sen~ces Bureau; I. In this Order we consider a complaint concerning the May J, 1996 rate increase by Cox Communications ("Cox") for,Us cable progI"'mm;ng services tier ("CPST") in Chula Vista, California, CUID No. cA0329. '):ri respon..~ to; this complaint, Cox submitted FCC Form 1235. This Order addresses only the reasonableness of Cox's CPST rate increase of $3.79 that became effective May 1, 1996. We have already issued an order addressing the TC8Sonablen.ess of the CPST i-ates prior to the implementation of the rate increase.' We conclude that, notwithstanding an adjustment, the rate increase Cox implemented on May I, 1996 is not unreasonable. . 2. Under the Communications Act,' the Federal Communications Commission ("Commi.siori") is ailthorized to review the CPST rates of cable systems not subject to effective competition 1D ensure that rati:s charged are not unreaso!lll.ble. If the Commission finds the rate unreasonable:, it shall determine the correct :rate and any refund liability. The Telecommunications Act of 1996 ("the 1996 Act")' and our rules implementing the new legislation,' require that complaints against the CPST rates be filed with the Commission by a franchising authority that has received suliscriber complaint5. A franchising authority may not , See In the Matter of Cox Communications, lne, and TIme> Mirra.- C.ble Television, Inc., 11 FCC Red 1972 (1995).' . , communications Act, Section 623(c), as,amendEd, 47 U.S.C. Section 543(e)(3) (1996). , Pub. 1.. No. 104-104, 110 Sl1It.56 (Febniai-y S, 1996). . , 1 See Tmplementation of Cable ACt Reform Provisions oftbe Tcleconllll\mieations Act of 1996, FCC 96-154 (released April 9. 1996) ("in/en,. Rules"). If -I Federal Communieatlons CommJsslon DA 96-2070 file a crST rate complaint unless, within 90 days after such increase becomes effective, it receives subscriber complaints.s 3. On October 24, 1996, the City of Chula ViS1a (nthe Cityn), the franchising authority, filed a complaint against Cox's May 1, 1996 CPST rate increase. In its complaint, the City certifies that it has received subscriber complaints regarding the CPST rate increase within 90 days after the date the increase first appeared on the subscribers' bills.6 As required by our rules, the City's complaint also included a copy of the rate justification that Cox submitted to the franchising authority. 4. We have reviewed the FCC Form 1235 submitted by Cox, and have made one adjustment. We have adjusted Column C of Line 3h to properly gross-up Cox's income taxes. This resulted in ~.cQ,1;!Ii'~iip);l,,?f, Cox's Fee FC\'W )2)~ maximum permitted rate for thc projected period to $18.07.' Notw1fustanrling, this aaj'tJiment; we find that Cox's rate increase is not unreasonable. Cox must reflect this adjustment in any subsequent rate justifications.7 5. ACCORDINGLY, IT IS ORDERED, pursuant to Section 0.321 of the Commission's rules, 47 C.F.R. Section 0.321 that the monthly CPST rate increase of $3.79 charged by Cox Cornml!ffiCations in CI:!IP~~o. CA.0329, Chula Vista, California, beginning May 1, 19961S NOT UNREASONABLE. 6. c:1T IS FURTHER ORDERED, pursuant to Section 0.321 of tbe Commi<."'on's rules, 47 C.F:R SectionU.321that the City of Chula Vista's complaint against the CPST rate, effective May 1, 1996, charged by Cox Communications, in cum No. CA0329, Chula Vista, California, IS DENTED. ' . .". n ,( FEDERAL COMMUNICATIONS COMMISSION T Elizabeth W. Beaty Chief, Financial Analysis 1lIld Compliance Division Cable Services Bureau , See Communicalions Act, Section 613 (e), as amended. 47 U.S.c. Section 543(cX3) (1996). . See FCCFonn 329 Complaiot filed by the County d.ted September 16, 1996. , . , This finding i. based solely on the representations of Cox. Should infmmation come 10 our attention that these representations WQ"C materia.!Iy inaccurate, we; reserve the right tel take appropriate actlo:a. ThIs Order is not to be con.nued as a [mding that we have accepred as correct any spectfic entry, ""planation Or argument made by any party to this proceeding not specifically a<!lJrgsecj herein. 2 L-j-'L Federal Communications Commission I 96-Xx..Xi< I Before the Fedeid.1 Communications Commission Washington. D.C 20554 In rh~ Matter of ) ., ) ) cum No. CA0329 (ebula Vista) ) ) ) ) Cox Communications Order Regardmg. Cable Programming Services Tier Rau:s ERRATUM TO 1>A 96-2ll70 Adopted: Released: By the Chief. Financial Analysis and Compliance Division. Cable Services Bureau: Paragraph 4 of Cox Commw1icari0l15. DA 96-2070. released December 11. 1996. is corrected to read as [ollows: : , 4. We have reviewed the FCC Form 1235 submined by Cox. and have made OIle "djll:51menL We havc adjusted Column C of Line 3h to properly ;;1'os5-., :::o~'s income tax,"s. This resulted in a correction of Cox's FCC Form 1235 maxImum permitted rate for the projected period to $20.57. Ne>twithslanding., this adjustrnenL we find that Cox's rate increase is I1flt unre3sonable. Cox must reflect Uus adjustment in any subsequdnt rate justifications.' ! FEDERAL COMMUN1CATIONS COMMlSSION ~~\';\.b~'- L0.&..-ctj Elizabe-J W. Beary Chief, Financilll !\nalysis and Compliance Division Cable Services Bureau , 1 This find.in~ is based sokly on the representations of Cox. Should information come to our attention that thpe rcpresentatinn~ were n1alerially inaccurate. we reserve the right to lake appropriRte action. This Order is not to; be constn.lCd as .... finding thlil we h~ve ~ccepted us C'C"IrrtCI any SpeC\flC enny. explanation or argument: made by ~n)' pnl-ry to thIs prClce~ding. nm spl,;cillc~\ly nddre~sed herem. \ 4--3 F t f'=8cfeldl Communications Commissior: Washln:JtD:l, D.C. 2:1554 Appl'ove::l ,:>y OM3 3D5G-0555 , Abbreviated Cost of Service Filing For Cable Network Upgrades - , -1..c::...G. :' / I,/, - / P,' /I 1/ /J~/tdff v~f/ Community Unit or System Operating Name Icommunity Unit ID - CUID(s) I , COX COMMUNICATIONS SAN DIEGO CA0329 Name of Cable Operator cox COMMUNICATIONS SAN DIEGO Mailing Address i , 5159 FEDERAL BLVD. ! City I~tate I , SAN DIEGO CA , Ownership of Franchise Of Sys'tem {PlaCe an "X" to the left of the appropriate answer.l: X coCorp Sub~hapter S ..- -.-.,..,.. i I Partnership Sole Proprietor Other , -..-- I Person to contact regarding this torm: I I WILIAM FITZSIMONS , , Telephone I Fax Number I 6t9-266-54tO 619-266-5540 i , Lo~al Franchising Authority , CITY OF CHULA VISTA , , Mailing Address ! 276 FOURTH AVENUE City I ~tate I I , CHULA VISTA CA , This 10rm is being med for: (Check One) x Pre- Approval OR Final Approval Note: If Final Approval filinQ, attach all Pre-Approval filings, if any, releting to the upgrade. Scope of Fiing: (Check One) x Franchise level OR System level Note: Cable System is defined in Section 60217) of the Communications Act. Page 1 of 8 F::F 4-y- f::ed"et;;ll Communications CO:"n:"nL.o;sJon WSshtlgtO:'l, D.C, 20554 ,,;JlJI.....v<;:... '-'1 .......,.,~ ~~-- ---- Abbreviated Cost of Service Filing For Cable Network Upgrades Part I. OuaUfication for Upgrade Rate Adjustment A. Significance of Upgrade Qualification 1. Does the upgrade meet the minimum 1echnical specifications described in the Instructions for Part I. Qualification for Upgrade Rate Adjustment, Line 1? y Yes No I 2. If "No' was answered in question 1, attach a brief description of how subscribers to Basic and C.bl" Programming Service Tiers will benefit from the capital improvements. 3. Complete the following items to determine the oost of the capital improvement as a percentage of r~8 bese (investment in cable property, pl.nt and equipment for the area over which the improvement wIll be , used): i A. The net upgrade rate base a. Total rate base after upgrade C. Percentage of upgrade to 10tsl rate base $ $ $.27,298 $41,754 65.38% B. Used & Useful Qualification If this form has been completed for a pre-approval, please skip to line 3. 1. Has tha upgrade baan completed? X Yes No 2. If question 1 was answered 'yes", enter the date the upgrade was completed and began providing service to subscribers of regulated services: 3. If the Ph8sed-ln Approach is elected. 8rt.ch . description 01 the subsections involved and the projected dates on which the upgrade will be completed and providing service to subscribers 01 rate regulated services within those subsections. lmoerial Bescb Santo. Cbule Vis", NBtional Cit\' NOV-95 FEB .96 MAY -96 MAY -96 Page 2 01 8 4--5 I I I , i ! i FCC Form 1235 fRbrudry 1996 ! l'ri,,,, ~,. "f>:"". '~.,'<F>- J" ' t & , ~._./ / r.,' .' , I r.l:::Om""f\r\lC;3~::or.-.-n~Ll"n A.,:>pmYElCorDME~ Abbreviated Cost of Service Filing For Cable NehUork upgrades Part II. Upgrade Revenue Requirement Computation ,. Na~ Upg:".:l.CJe Rate B:lSe (WoftsneetA, Line 49) 2. Ret!rn on Invec1ment 3, Rate ~1 Retum Pe~ntage b. Com~lied ~h.m on Upgrade R:a~ Bne (Une 1 x Line 2a) 3, A1ICManoe for IOCQme TIllre~ a. Federsl1ncome Tax R&te b. S::ate Income Tax tult c:.. Compuled Rem on Upt:l!'3de RBt2 Base (l.ile 2b) d. k'rt!lf6$t Expanse ~lated to Upgrade (W'::>r1csheet A. Une ge) e. Dis.1I'itluti:ms (NDrr-C Corp, Fil~ On!)') t, Conl^bvt<>.. (l\bn-C Coo'p, "'''''' Only) g, RetumAmounlSUtlject10 IncomeTa>: 11. IncomQ T ilX AllowJ:inQW 4. ProJ~ Nel.lmpact of Upgrade on O?eraung 8cpef'1$e5 (WorlGheet A, lil'U:!: Sa) 5. N8~ Re-..enue and Income AdjU:Slment:l Related to U~de (\f'iorla;heEr. A. tJoe '12e) E. iotal UptJl":lde RevenlJe ReqLirement rUne 2 -. :3 '" 4 . 5' (a) (b) '" Part III. Alloce1lon of Upgratie RIJvttllUB Re~uil'BmBnl tD ~ie and Cable Progl2Jnmlng SDl'Vlee TitUS ,. Upgrade Revenue Requirements.. (?9rt II, Lire S) Z. N,,:TIbBr of Subse.t\bers :t Annu:ll Revenue Requremenl Per Subscribe- (Une1 ! Line.2) 4. Monthly Nctwo.1\ Up~de ACId-on [une ::. J 12.) 5. SeJe:::led method of ~ub6oriber rt!CCI\l9fy: (Chack Ona) (a) (b) (c' BST CPST-1 CPST -2 TOTAl. .$1.194 52,588 $3,762 53 62 Sl9 S42 561 $1.57 P,48 $5.05 CPST. & BST OR CPST. 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Co:nmunicatipns: Commi:::os:ion Was:hj~too. DC 20554 ~~~ov~u ~~ ~~06Be Abbreviated Cost of Service Filing for Cable Network Upgrades Worksheet B: Allocation Key Name of Operator. COX COMMUNICATIONS S Page' 1 of 1 - Franchise CUID: CA0329 OrganizatiOr'ial Level: Date of Filing: 35139 Allocation Allocation Methodology Description Key (a) (b) 1 CHANNELS POST-REBUILD CHANNELS PERCENTAGES Basic 18 24% : CPS 41 55% NCP8-alacarts 4 5% NCPS-Premium 11 15% 74 1,00 : , : : : I I : pall" 7 of 8 FCC Form 1235 February 1995 4- -10 Approved by O~'b--{l6B!i Abbreviated Cost of Service Filing For Cable Networl<. Upgnldes Worksheet C: Soppleme.ntall)Qta , Name ofOpcmlor. COX COMMUNICATIONS SAN DlEGO P ag.: of .Franchise CUID: CA0329 DIlle. ofFilln", l/15/96 <m; Lovel, , DoI. ofReporto ior ~ ofthc following property znd equi.pmalt cat::pri~ 3tm: the gross depreciable balance resulting fram Ire: upgrorle , ~ong with 'the avenge detlrcciarion lift which comprise the ""0 ","menonl balance rot> rted in Work:lbcot A. , Co.:.f Method of i Desaipbon Uo=de YIS. Depreciation , , 1. Hoadond , 2. Tnmsmiuion.Pacilities aDd F...nuicmcn! , 3. Distnbution filcilities (Trunk, drops, .t<.) 4. Cirroit Equipment (lUlllllillm, power 000=. cto.) , S. Maintenance Facilities (gareg:s. warcl:1ou~. ~.) I , 6. MalntawlCC Vchlek:.s ond Equlpmllll1 7. BuUalngs (otllce) t. 0= l'Umltlll""JUl Equipmenl , , 9. ToTal Upgm1' &me Base If you wish to dis~ 8D}' oftbe above because they are not readity combined or ifyo\J wish lO add others , ! not sbown. reoon: such bela"': COSIof Method of , Lin.Number Description U~ YtS- Depreciation : 10. (Specify) A.,;al Distnbunon 16.028 12 ",.;gb>-lln. 11. (SpecifY) !Undcrground Dimiburion $8.441 12 ~8h1.1i~ : 51"1= Des"", & Enoineeriog : 12.(S;>ecify) S7ZS 12 ",.;ght-lln= 10. (Specify) A.eri.:1l Fiber DisI. SI,606 12 stroigbt-lln= : II. (Specify) UOQQgrollDO Fiber Dist S6,786 12 5Inigbt-line , 12.(So'cify) Optic1l Elec%tOD.ics $2,486 12 .".;gh,.line , , page tI of 6 FCC Form 1235 Fa~ry '996 4-11 ATTACHMENT 5 ~i 1 59 f ecl8ra: ETJ i. ,2r(} Self; Jlego Ci~li:~ -iG 921C~' : 6 ~ 9 i 263 - 92~! 1 Ibi9:26S-554C fa, July 1 J, 1997 Mr. John Goss City Manager City of Chula Vista 276 F ourth Avenue Chula Vista, CA 91910 cox COMMUNICATIONS RE: Annual filing of Federal Communications Commission (FCC) Forms 1205/1240 Dear Mr. Goss: On June 30, 1997 you received written notification from Cox Communications that this year's FCC 1205 andl240 forms would be filed with local franchise authorities on July 15, 1997. The purpose of this correspondence is to transmit these forms to you for your review. As you know, these forms adjust the Maximum Permitted Rates (MPR) for the Basic Service Tier and equipment and installation rates. The MPR establishes the upper limit or ceiling for rates which can be charged to customers. The rates outlined in the enclosed FCC Forms 1205 and 1240 are NOT actual customer rates, but rate limits Cox Communications cannot exceed. As the enclosed 1240 Form indicates, effective October 14, 1997, the MPR for the Basic Service Tier will change from $9.74 to $12.60. This rate change is the result of past inflation adjustments, channel additions/deletions, increased programming costs and true-up adjustments. The enclosed 1205 Form outlines the new MPR for equipment and installation rates. Included in this form is a decrease in the Hourly Service Charge from $31.03 to $30.53 No change will be occurring in the addressable decoder rental rate of $2.51 per month and the converter box rental rate will decrease from $1.40 to $.72 per month. In accordance with FCC regulations, if a franchise authority has not found these rates to be unreasonable within 90 days from the date of filing, then the rates outlined in the FCC Forms 1205 andl240 may be implemented. Under FCC rules and regulations, Cox Communications must file an annual FCC Form 1205 and 1240. In conjunction with this annual filing, Cox Communications must adjust actual customer rates on an annual basis within the rate limits established by filing. You can anticipate the actual rate changes to occur no earlier than February 15, 1998. As always, you will be notified in writing of any actual rate changes 30 days in advance. :J-1 Should you have any questions or require additional information, please don't hesitate to contact me or Mary Ball, Manager of Government and Community Relations at (619) 266-5203. Sincerely, WILLIAM J. ITZ IMMONS Vice Presiden of mancial Operations cc: Mary Ball Enclosure: FCC Form 1205 FCC Form 1240 5-j-/ Federal Communications Commission Washington, DC 20554 Approved by OMB 3060-0685 FCC FORM 1240 UPDATING MAXIMUM PERMITTED RATES FOR REGULATED CABLE SERVICES Cable Operator: Name of Cable Operator Cox Communications Mailing Address of Cable Operator 5159 Federal Blvd. City I~tate I~IP Code San Die.!O Ca 92105 YES 1. Does this filing involve a single franchise authority and a single community unit? NO X If yes, complete the franchise authority information below and enter the associated CUID number here; YES NO X 2. Does this filing involve a single franchise authority but multiple community units? If yes, enter the associated CUIDs below and complete the franchise authority information at the bottom of this page; 3. Does this ruing involve multiple franchise authorities? If yes, attach a separate sheet for each franchise authority and include the following franchise authority information with its associated CUID(s): Franchise Authority Information: Name of Local Franchising Authority See Attacbed : National Citv. Cbula Vista Imoerial Beacb Santee Mailing Address of Local Franchising Authority City State I ZIP Code Telephone number Fax Number 4. For what purpose is this Form 1240 being filed? Please put an "X" in the appropriate box. a. Original Form 1240 for Basic Tier b. Amended Form 1240 for Basic Tier c. Original Form 1240 for CPS Tier d. Amended Form 1240 for CPS Tier X X TO 10/01197 I 09/30/98 (mm/yy) TO 07/01196 I 06/30/97 (mm/yy) YES NO X X 08/30/96 (mm/dd/yy) YES NO X 06/30196 (mm/dd/yy) FCC Form 1240 July 1996 5. Indicate tbe one year time period ror which you are setting rates (the Projected Period). 6. Indicate the time period for which you are performing a true-up. 7. Status of Previous Filing of FCC Form 1240 (enter an I1X" in the appropriate box) a. Is this the first FCC Fonn 1240 fLIed in any jurisdiction? b. Has an FCC Form 1240 been filed previously with the FCC? If yes, enter the date of the most recent filing: I c. Has an FCC Form 1240 been filed previously with the Franchising Authority? I If yes, enter the date of the most recent filing: I Page 1 Microsoft Excel 5.0 Version 5-.3 Federal Communications Commission Washington, DC 20554 8. Status uf Previous Filiug uf FCC Form 1210 (enter an "x" in the appropriate box) a. Has an FCC Fonn 1210 been previously filed with the FCC? If yes, enter the date of the most recent filing: I b. Has an FCC Form 1210 been previously filed with the Franchising Authority? I If yes, enter the date of the most recent filing: I 9. Status of FCC Form 1200 Filing (enter an "x" in the appropriate box) a. Has an FCC Form 1200 been previously filed with the FCC? I If yes, enter the date flied: I b. Has an FCC Form 1200 been previously filed with the Franchising Authority? I If yes, enter the date filed: I 10. Cable Programming Services Complaint Status (enter an "x" in the appropriate box) a. Is this form being flied in response to an FCC Fonn 329 complaint? I If yes, enter the date of the complaint: I 11. Is FCC Form 1205 Being Included With This Filing YES X 11115/95 YES X 11115/95 YES X 07/15/94 YES X 07/15/94 YES YES X 12. Selection of "Going Forward" Channel Addition Methodology (enter aD "x" in the appropriate box) DCheck here if you are using the original rules [MARKUP METHOD]. ~ Check here if you are using the new, alternative rules [CAPS METHOD]. If using the CAPS METHOD, have you elected to revise recovery for channels added during the period May 15, 1994 to Dec. 31, 1994? YES Approved by OMB 3060-0685 NO (mm/dd/yy) NO (mm/dd/yy) NO (mm/dd/yy) NO (mm/dd/yy) NO X (mm/dd/yy) NO NO X 13. Headend Upgrade Methodology +NOTE: Operators must certify to the Commission their eligibility to use this upgrade methodology and attach an equipment list and depreciation schedule. DCheck here if you are a qualifying small system using the streamlined headend upgrade methodology. Part I: Preliminary Information Module A: Maximum Permitted Rate From Previous Filing a b c Line Line Description Basic Tier 2 Tier 3 Al Current Maximum Permitted Rate 1 $9.73531 $17.1821 1 M d I B S b Ob hO d Tier 4 e Tier 5 I 0 ue : u scn ers'ln . b c d e Line Line Description Bask Tier 2 Tier 3 Tier 4 Tier 5 B1 Average Subscribership For True-Up Period 1 63,632 61,499 B2 Average Subscribership For True-Up Period 2 B3 Estimated Average Subscribership For Projected Period 64,302 62,044 Module C: Inflation Infonnation Line Line Description CI Unclaimed Inflation: Operator Switching From 1210 To 1240 C2 Unclaimed Inflation: Unregulated Operator Responding to Rate Complaint C3 Inflation Factor For True-Up Period 1 [Wks 1) C4 Inflation Factor For True.Up Period 2 rWks I] C5 Current FCC Inflation Factor Page 2 Microsoft Excel 5.0 Version 5-4 1.0000 1.0000 1.0193 1.0183 FCC Fonn 1240 July 1996 Federal Conununications Commission Washington, DC 20554 Approved by OMB 3060-0685 0 ue : a cu atm2 t e ase Rate . b c d . Line Line Dt!SCriptiOD Basic Tier 2 Tier 3 Tier 4 TierS 01 Current Headend Upgrade Segment 02 Current External Costs Segment $0.5630 $6.0106 03 Current Caps Method Segment $1.9073 D4 Current Markup Method Segment 05 Current Channel Movement and Deletion Segment $1.2096 ($1.2409) 06 Current True-Up Segment $0.3161 $0.0602 07 Current Inflation Segment $0.1872 $0.2349 08 Bue Rate [A1-01-D2-03-D4-05-06-07] $7.4594 $10.2099 M dID C I I h B Part II: True-Up Period Module E: Timin Information Line Line Description 2 El What Type of True-Up Is Being Performed? (Answer ~ I ~, ~2~, or ~3 ~. See Instructions for a description of these types.) If "1", go to Module I. If "2", answer E2 and EJ. If "3", answer D, EJ, E4, and ES. E2 Number of Months in the True-Up Period 1 E3 Number of Months between the end of True-Up Period 1 and the end of the most recent Projected Period E4 Number of Months in True-Up Period 2 Eligible for Interest E5 Number of Months True-Up Period 2 Ineligible for Interest 12 3 Module F: Maximum Permitted Rate For True-Uo Period 1 . b c d . Line Line Description Basic Tier 2 Tier 3 Tier 4 Tier S FI Caps Method Segment For True-Up Period 1 [Wks 2] $2.0075 F2 Markup Method Segment For True-Up Period 1 [Wks 3] F3 Chan Mvrnnt Deletn Segment For True-Up Period 1 [Wks' 415] $1.2096 ($1.2409) F4 True-Up Period I Rate Eligible For InOation [OS+Fl+F2+F3 $8.669 $10.9765 F5 Inflation Segment for True-Up Period 1 [(F4*C3)-F4] $0.1669 $0.2113 F6 Headend Upgrade Segment For True-Up Period 1 [Wks 6] F7 External Cosls Segment For True-Up Period 1 [Wks 7] $0.9496 $5.6067 F8 True-Up Segment For True-Up Period 1 $0.3132 $0.0602 F9 Max Perm Rate for True-Up Period 1 [F4+ F5+F6+F7+FS] $10.0987 $16.8547 0 ue : axunum ermltte ate or rue- Jo. erIO . b c d . Line Line Description Basic Tier 2 Tier 3 Tier 4 TierS GI Caps Method Segment For True-Up Period 2 [Wks 2] G2 Marl-up Method Segment For True-Up Period 2 [Wks 3] G3 Chan Mvmnt Deletn Segment For True-Up Period 2 [Wks' 415] G4 TU Period 2 Rate Eligible For Innation [D8+ F5+GI +G2+G G5 Innation Segment for True-Up Period 2 [(G4.C4)-G4] G6 Headend Upgrade Segment For True-Up Period 2 [Wks 6] G7 External Costs Segment For True-Up Period 2 [Wks 7] G8 True-Up Segment For True-Up Period 2 G9 Max Perm Rate for True-Up Period 2 (G4+G5+G6+G7+G8] M dIG M P dR F T UP. d2 5-5 FCC Form 1240 July 1996 Page 3 Microsoft Excel 5.0 Version Federal Communications Commission Washington. DC 20554 Approved by OMB 3060-0685 Module H: True-Un Adiustment Calculation . b c d . Line Line Description B.w.: Tier 2 Tier 3 Tier 4 Tier 5 Adjudment For True-Up Period 1 HI Revenue From Period 1 $6,350,473.60 $12,661,414.12 H2 Revenue From Max Permined Rate for Period I 57,711,188.9982 512,438,554.5678 H3 True-Up Period 1 Adjustment [H2-HI} $1,360,715.3982 ($222,859.5522) H4 Interest on Period 1 Adjustment $116,963.056 ($19,156.3455) Adjumneot For Troe--Up Period 2 H5 Revenue From Period 2 Eligible for Interest H6 Revenue From Max Perm Rate for Period 2 Eligible For Intere H7 Period 2 Adjustment Eligible For Interest [H6.H5] H8 Interest on Period 2 Adjustment (See instructions for formula) H9 Revenue From Period 2 Ineligible for Interest HI0 Revenue From Max Perm Rate for Period 2 Ineligible for Intere HII Period 2 Adjustment Ineligible For Interest (HIO-H9] Total True--Up Adjusbneot HI2 Previous Remaining True-Up Adjustment $O.()()()() $O.()()()() H13 Total True-Up Adju5lment [H3+H4+H7+H8+Hll+HI2] $1,477,678.4543 ($242,015.8977) H14 Amount of True-Up Claimed For This Projected Period $1,477,678.4543 ($242,015.8977) H15 Remaining True-Up Adjustment [HI3-HI4] $O.()()()() $O.()()()() . b c d . Line Line Description B.w.: Tier 2 Tier 3 Tier 4 Tier 5 11 Caps Method Segment For Projected Period [Wks 2] 52.6305 12 Marl"1Jp Method Segment For Projected Period [Wk.s 3] 13 Chan Mvrnnt Deletn Segment For Projected Period [Wks 4/5] $1.2096 ($1.2409) 14 Proj. Period Rate Eligible For Inflation [08+F5+G5+ 11 +12-+ $8.8359 $11.8108 I5 Inflation Segment for Projected Period [(I4.C5)-14) $0.1617 $0.2161 16 Headend Upgrade Segment For Projected Period [Wks 6J 17 External Costs Segment For Projected Period [Wks 7J $1.6875 $5.9351 18 Troe-Up Segment For Projected Period $1.915 ($0.3251) 19 Max Permitted Rate for Projected Period [14+15+16+17+18] $12.6001 $17.637 110 Operator Selected Rate For Projected Period Part III: Projected Period Module I: New Maximum Permitted Rate Note: The maximum penniued rate figures do not lake ;nlo account any refund liability you may have. If you have previously been ordered by lhe Commission or your local franchising aulhoril)' to make refunds, you are not relieved of your obligation to mak such refunds even iflhe permiued rate is higher than the contested raJe or your current rate. Certincation Statement WILLFUL FALSE STATEMENTS MADE ON THIS FORM ARE PUNISHABLE BY FINE AND/OR IMPRISONMENT (U.S. CODE TITLE 18, SECTION 1001), AND/OR FORFEITURE (U.S. CODE, TITLE 47, SECTION 503). . . . . Signature Date 1 aith. Telephone number J. Fitzsimmons, V.P. of Financial Operations Fax Number (619 266-5410 619 266-5540 Page 4 5-~ Microsoft Excel 5.0 Version FCC Form 1240 July 1996 Federal Communications Commission Washington, DC 20554 Worksheet 1 - True-Up Period Inflation For instructions, see Appendix A of InstruClions For FCC Form 1240 Line Period FCC Inflation F.ctor 101 Month 1 2.21% 102 Month 2 2.21% 103 Month 3 2.21% 104 Month 4 1.83% 105 MonthS 1.83% 106 Month 6 1.83% 107 Month 7 1.83% 108 Month 8 1.83% 109 Month 9 1.83% 110 Month 10 1.83% III Monthll 1.83% 112 Month 12 1.83% 113 Average lnflalion Factor for True 1.0193 Up Period I 114 Month 13 115 Month 14 116 Month IS 117 Month 16 118 Month 17 119 Month 18 120 Month 19 121 Month 20 122 Month 21 123 Month 22 124 Month 23 125 Month 24 126 Average lnflalion Factor for True Up Period 2 5-1 Page 1 Microsoft Exce15.0 Version Approved By OMB 3060-0685 FCC Form 1240 July 1996 Federal Communications Commission Washington, DC 20S54 Approved By OMB 3060-0685 Worksheet 2 - Caps Method True-Up Period, Tier 2 Question 1. Indicate the period for which this worksheet is being used. (Put an "X' in the appropriate box.) Question 2. Indicate the tier for which this worksheet is being used. (Put an "X' in the appropriate box.) True-Up Period X Projected Period Basic Tier 2 X Tier 3 Tier 4 Tier 5 Question 3. How long is the fltSt period, in months,for which rates are being set with this worksheet? Question 4. How long is the second period, in months,for which rates are being set with this worksheet? 12 1 2 3 4 5 6 7 8 9 Previous Current Operators Operator's Liceose Fee Total License Total Line Period Regulated Regulated Net Cap For Cap For Reserve Fee Reserve Operators Total Caps Channels Channels Change Channels License Fees Used Used Cap Used Adjustment Added 201 Previous $0.30 $1.20 $1.50 Month 202 Month 1 $0.30 $1.20 $1.50 203 Month 2 $0.30 $1.20 $1.50 204 Month 3 $0.30 $1.20 $1.50 205 Month 4 61 65 4 $0.00 $0.00 $0.30 $1.20 $1.50 206 MonthS $0.30 $1.20 $1.50 207 Month 6 $0.30 $1.20 $1.50 208 Month 7 65 65 0 $0.20 $0.74 $1.04 $1.40 $2.44 209 Month 8 $1.04 $1.40 $2.44 210 Month 9 $1.04 $1.40 $2.44 211 Month 10 65 65 0 $0.00 $0.14 $1.18 $1.40 $2.58 212 Month II $1.18 $1.40 $2.58 213 Month 12 $1.18 $1.40 $2.58 214 Ave e Period 1 Ca Method Ad'ustment $2.0075 215 Month 13 216 Month 14 217 Month 15 218 Month 16 219 Month 17 220 Month 18 221 Month 19 222 Month 20 223 Month 21 224 Month 22 225 Month 23 226 Month 24 227 Ave e Period 2 Ca Method Ad'ustment 5-8 FCC Fonn 1240 July 1996 Page 2 Microsoft Excel 5.0 Version Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 2 - Caps Method Projected Period, Tier 2 True-Up Period Projected Period Question 1. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) Question 2. Indicate the tier for which this worksheet is being used. (Put an ")(" in the appropriate box.) x TierS Basic Tier 2 X Tier 3 Tier 4 Question 3. How long is the first period, in months,for which rates are being set with this worksheet? Question 4. How long is the second period, in months,for which rates are being set with. this worksheet? 12 o 1 2 3 4 5 6 7 8 9 Line Period Previous Regulated Channels Current Regulated Channels Net Cbange Operators Cap For Channels Added Operator's Cap For License Fees License Fee Reserve Used Total License Fee Reserve Used Total Operators Cap Used Total Caps Alljustment 201 Previous $1.18 $1.40 $2.58 Month 202 Month 1 65 66 1 $0.00 $1.18 $1.40 $2.58 203 Month 2 $1.18 $1.40 $2.58 204 Month 3 $1.18 $1.40 $2.58 205 Month 4 66 66 0 $0.06 $1.25 $1.40 $2.65 206 MonthS $1.25 $1.40 $2.65 207 Month 6 $1.25 $1.40 $2.65 208 Month 7 $1.25 $1.40 $2.65 209 Month 8 $1.25 $1.40 $2.65 210 Month 9 $1.25 $1.40 $2.65 211 Month 10 $1.25 $1.40 $2.65 212 Month 11 $1.25 $1.40 $2.65 213 Month 12 $1.25 $1.40 $2.65 214 Ave e Period 1 Ca Method Ad'usment $2.6305 5-~ FCC Fonn 1240 July 1996 Page 2 Microsoft Excel 5.0 Version Question 1. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) I True-U~ Period Question 2. Indicate the tier for which this worksheet is being used. (Put an "Xl! in the appropriate box.) I Ba;iC I Tier 2 I Tied I Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 5 - Channel Movement and Deletion True-Up Period, Basic Tier For instruction<>, see Appendix A of Instructions For FCC Form 1240 Projected Period Ticr4 TierS Question 3. How long is the first period, in months. for which rates are being set with this worksheet? Question 4. How long is the second period, in months. for which rates are being set with this worksheet? 12 1 2 3 4 Line Residual uf Channels Deleted Residual of Channels Moved From Tier (added) to Tier Net Per-Channel Cost Acljustmeut [Columu 2 - COIUDlD 1] Cumulative Net Per- Channel Cost Acljustmeut Period 501 502 503 504 505 506 507 508 509 510 511 512 513 514 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 $1.2096 Previous Period Month 1 Month 2 Month 3 Month 4 MonthS Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Ave e Period 1 Channel Movement aod Deletion Ad'wOOeot $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 515 Month 13 516 Month 14 517 Month 15 518 Month 16 519 Month 17 520 Month 18 521 Month 19 522 Month 20 523 Month 21 524 Month 22 525 Month 23 526 Mnnth 24 527 Average Period 2 Channel Movement aod Deletion Adjwtmeot Page 1 5-10 Microsoft Excel 5.0 Version FCC Form 1240 July 1996 Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 5 - Channel Movement and Deletion True-Up Period, Tier 2 For instructions, see Appendix A oflnstruct.ions For FCC Fonn 1240 Question 1. Indicate the period for which this worksheet is being used (Put an "X" in the appropriate box.) I True-U~ Period Question 2. Indicate the tier for which this worksheet is being used (Put an "X" in the appropriate box.) I Sa,ie I TO; 2 I Tied I Tier 4 Question 3. How long is the f1J"Sl period, in months. for which rates are being set with this worksheet? Question 4. How long is the second period, in months. for which rates are being set with this worlcsheet? Line 1 2 3 Period Residual of Channels Deleted Residual of Channels Moved From Tier (added) to Tier Net Per-Channel Cost Acljustmeot [Column 2 - Column 1] 501 502 503 504 505 506 507 508 509 510 511 512 513 514 Previous Period Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Ave e Period 1 Channel Movemeot and Deletion Ad'ustmeot $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 515 Month 13 516 Month 14 517 Month 15 518 Month 16 519 Month 17 520 Month 18 521 Month 19 522 Month 20 523 Month 21 524 Month 22 525 Month 23 526 Month 24 527 Ave e Period 2 Channel Movement and Deletion Ad.ustment 5-1\ Page 2 Microsoft Excel 5.0 Version Projected Period Tier 5 12 4 Cumulative Net Per- Channel Cost Acljusbneot ($l.2409) ($1.2409) ($1.2409) ($l.2409) ($l.2409) ($l.2409) ($l.2409) ($l.2409) ($1.2409) ($1.2409) ($l.2409) ($l.2409) ($l.2409) ($l.2409) FCC Form 1240 July 1996 Question 1. Indicate the period for which this worksheet is being used (Put an "X' in the appropriate box.) I True-Up Period Question 2. Indicate the tier for which this worksheet is being used. (Put an "Xl! in the appropriate box.) I Ba~iC I Tier 2 I Tied I Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 5 - Channel Movement and Deletion Projected Period, Basic Tier For instructions. see Appendix A oflnstructions For FCC Fonn 1240 Projected Period X Tier 4 TierS Question 3. How long is the first period, in months, for which rates are being set with this worksheet? Question 4. How long is the second period, in months, for which rates are being set with this worksheet? 12 o 1 2 4 3 Line Residual or Channels Deleted Residual or Channels Moved From Tier (added) to Tier Net Per-Channel Cost Acljustmeot [Column 2 - Columo 1] Cumulative Net Per-Channel Cost Acljustmeot Period 501 502 503 504 505 506 507 508 509 510 511 512 513 514 S1.2096 SI.2096 SI.2096 $1.2096 S1.2096 SI.2096 S1.2096 SI.2096 SI.2096 SI.2096 S1.2096 S1.2096 S1.2096 S1.2096 Previous Period SO.OOOO SO.OOOO $0.0000 $0.0000 SO.OOOO SO.OOOO SO.OOOO SO.OOOO SO.OOoo SO'OOOO SO'OOOO SO.OOOO Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Ave e Period 1 Channel Movement and Deletion A . ostmeot 5~/d- Page 1 Microsoft Excel 5.0 Version FCC Form 1240 lul)" 1996 Question 1. Indicate the period for which this worksheet is being used. (Put an "X" in the appropriate box.) I True-Up Period Question 2. Indicate the tier for which this worksheet is being used (Put an "X" in the appropriate box.) I Ba,i, I Ti~ 2 I Tier3 I 501 502 503 504 505 506 507 508 509 510 511 512 513 514 Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 5 - Channel Movement and Deletion Projected Period, Tier 2 For instructions, see Appendix A of Instructions For FCC Fonn 1240 Projected Period X Tier 4 TierS Question 3. How long is the fIrst period, in months, for which rates are being set with this worksheet? Question 4. How long is the second period, in months, for which rates are being set with this worksheet? 12 o 1 2 3 4 Line Residual uf Channels Deleted Residual of Channels Moved From Tier (added) to Tier Net Per-Channel Cost Acljustmeol [Column 2 . Column 1] Cumulative Net Per-Channel Cost Acijustmeot Period Previous Period ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) ($1.2409) Month I Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month II Month 12 Aver e Period 1 Cbannel Movemeot and Deletion Ad.ustmeot $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 5-13 Page 2 FCC Form 1240 July 1996 Microsoft Excel 5.0 Version Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 7 - External Costs True-Up Period For instructions, see Appendix A ofInstructions For FCC Fonn 1240 True-Up Period Projected Period Question 1. For which time period are you filling out this worksheet? [Put an "X" in the appropriate box.] x Question 2. How long is the first period, in months, for which rates are being set with this worksheet? Question 3. How long is the second period, in months. for which rates are being set with this worksheet? 12 Une Line Descri tion . Basic Tier 2 eno 1 TJerJ Tier 4 e TierS External Costs Eligible for Markup Cost of Programming For Channels Added Prior to 701 5/15/94 or .After 5/15/94 Using Markup Method $662,695.00 $3,827,519.00 For Period 702 Retransmission Consent Fees For Period 703 Copyright Fees For Period 704 External Costs Eligible For 7.5% Markup $662,695.00 $3,827,519.00 705 Marked Up EXlemal Costs $712,397.1250 $4,114,582.9250 External Costs Not Elil!ible for Markup 706 Cable Specific Taxes For Period $12,666.00 $23,129.00 707 Franchise Related Costs For Period 708 Commission Regulatory Fees For Period 709 Total External Costs For Period $725,063.1250 $4,137,711.9250 710 Monthly, Per.Subscriber External Costs For Period $0.9496 $5.6067 I Period 2 External Costs Eligible for Markup Cost of Programming For Channels Added Prior to 711 5/15/94 or After 5/15/94 Using Markup Method For Period 712 Retransmission Consent Fees For Period 713 Copyright Fees For Period 714 E).temal Costs Eligible For 7.5% Markup 715 Marked Up External Costs External Costs Not Eligible for Markup 716 Cable Specific Taxes For Period 717 Franchise Related Costs For Period 718 Commission Regulatory Fees For Period 719 Total External Costs For Period 720 Monthly, Per.Subscriber E).1emal Costs For Period 2 5~14- Page I Microsoft Excel 5.0 Version FCC Form 1240 July 1996 Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-0685 Worksheet 7 - External Costs Projected Period For instructions, see Appendix A ofInstructions For FCC Form 1240 True-Up Period Projected Period Question 1. For which time period are you filling out this worksheet? [Put an "X" in the appropriate box.] x Question 2. How long is the ftrst period. in months, for which rates are being set with this worksheet? Question 3. How long is the second period, in months, for which Tates are being set with this worksheet? 12 o Line Line Descri tion Basic Tier 2 Peno 1 Tier 3 Tier 4 TierS External Costs Eligible for Markup Cost ofProgranuning For Channels Added Prior to 701 5/15194 or After 5/15194 Using Markup Method $1,199,277.00 $4,088,166.00 For Period 702 Relran<imission Consent Fees For Period 703 Copyright Fees FaT Period 704 External Costs Eligible For 7.5% Markup $1,199,277.00 54,088,166.00 705 Marked Up Extemai Costs 51,289,222.7750 54,394,778.4500 External Costs Not Eligible for Markup 706 Cable Specific Taxes For Period $12.882.00 $24.084.00 707 Franchise Related Costs FOT Period 708 Commission Regulatory Fees For Period 709 Total External Costs For Period 51,302,104.7750 54,418,862.4500 7]0 Monthly, Per-Subscriber E>.1ernal Costs For Period 51.6875 55.9351 1 5-15 Page 2 Microsoft Excel 5.0 Version FCC Form 1240 July 1996 Federal Communications Commission Washington, DC 20554 Approved By OMB 3060-Q6S5 Worksheet 8 - True-Up Rate Charged For instructions, see Appendix A ofInstructions For FCC Fonn 1240 Question 1. How long is the True-Up Period I, in months? Question 2. How long is the True-Up Period 2, in months? 12 . b c d . Line Line Descriptiou Basic TierZ Tier 3 Tier 4 Tier 5 SOl Month 1 $7.3000 $17.1400 S02 Month 1 $7.3000 $17.1400 S03 Month 3 $7.3000 $17.1400 S04 Month 4 $7.3000 $17.1400 805 MonthS $7.3000 $17.1400 806 Month 6 $7.3000 $17.1400 807 Month 7 $7.3000 $17.1400 808 Month 8 $9.7400 $17.1800 809 Month 9 $9.7400 $17.1800 810 Month 10 $9.7400 $17.1800 811 Month 11 $9.7400 $17.1800 812 Month 12 $9.7400 $17.1800 813 Period 1 Average Rate $S.3167 $17.1567 814 Month 13 815 Month 14 816 Month IS 817 Month 16 818 Month 17 819 Month 18 820 Month 19 821 Month 20 822 Month 21 823 Month 22 824 Month 23 825 Month 24 826 Period 2 Average Rate :.) Ib Page 1 Microsoft Excel 5.0 Version FCC Form 1240 July 1996 COX COMMUNICATIONS Franchise Authority Information: Name of Local Franchising Authority CUID(s) City of National City CA0419 Mailing Address of Local Franchising Authority 1243 National City Blvd. City State I~IP Code National Cilv Ca 91950 Telephone number Fax Number (619) 691-5044 (619) 336-4376 Name of Local Franchising Authority CUID(s) City of Chnla Vista CA0329 Mailing Address of Local Franchising Authority 276 Fourth Avenue City Slate I ~IP Code Chula Vista Ca 91910 Telephone number Fax Number (619) 691-5044 (619) 691-5171 Name of Local Franchising Authority CUID(s) City of Imperial Beach CA0421 Mailing Address of Local Franchising Authority 825 Imperial Beach City State I ~IP Code Imperial Beach Ca 91932 Telephone number Fax Number (619) 423-8300 (619) 429-9770 Name of Local Franchising Authority CUlD(s) Citv of Santee CA0337 Mailing Address of Local Franchising Authority 10601 Ma.nolia Avenue City Slate I~IP Code Santee Ca 92071 Telephone number Fax Number (619) 2584100 (619) 562-0649 !J- 11 96 JuI Aug Sep Oct Noy Dec 97 Jan Feb Mar Apr May Jun 97 Oct Nay Dec 98 Jan Feb Mar Apr May Jun Ju1 Aug Sep COX COMMUNICATIONS PROGRAMMING EXPENSE BY MONTH Cbula Vista, National City, Imperial Beacb, Santee, BASIC CPS Subs Rate Cost Subs Rate Cost 63,632 0.5310 33,789 61,499 5.0484 310,472 63,632 0.5310 33,789 61,499 5.0484 310,472 63,632 0.5310 33,789 61,499 5.0484 310,472 63,632 0.5057 32,179 61,499 5.0873 312,864 63,632 0.5057 32,179 61,499 5.0873 312,864 63,632 0.5057 32,179 61,499 5.0873 312,864 63,632 1.2174 77,466 61,499 5.3050 326,252 63,632 1.2174 77,466 61,499 5.3050 326,252 63,632 1.2174 77,466 61,499 5.3050 326,252 63,632 1.2174 77.466 61,499 5.3050 326,252 63,632 1.2174 77,466 61,499 5.3050 326,252 63,632 1.2174 77,466 61,499 5.3050 326,252 63,632 662,695 61,499 3,827,519 64,302 1.2174 78,281 62,044 5.1350 318,596 64,302 1.2174 78,281 62,044 5.1350 318,596 64,302 1.2174 78,281 62,044 5.1350 318,596 64,302 1.6665 107,159 62,044 5.6096 348,042 64,302 1.6665 107,159 62,044 5.6096 348,042 64,302 1.6665 107,159 62,044 5.6096 348,042 64,302 1.6665 107,159 62,044 5.6096 348,042 64,302 1.6665 107,159 62,044 5.6096 348,042 64,302 1.6665 107,159 62,044 5.6096 348,042 64,302 1.6665 107,159 62,044 5.6096 348,042 64,302 1.6665 107,159 62,044 5.6096 348,042 64,302 1.6665 107,159 62,044 5.6096 348,042 64,302 1,199,277 62,044 4,088,166 ~-18 Chn 2 3 4 5 . 7 8 8 10 11 12 13 14 15 16 17 18 ,. 20 21 22 23 24 26 26 27 28 29 30 31 32 33 34 36 38 37 38 38 40 41 42 43 44 45 .. 47 48 4. 60 51 52 63 54 56 56 67 58 59 60 61 62 63 .. .. .. 67 .. .. 70 71 72 73 74 76 76 78 .. Start True-up 7/1/96 USA ESPN KCOX KTlA XETV KNSD KFMB KUSI KGTV KPBS XEWT KCOP KTTY SNEAK KBNT COUNTY GOVT C-SPAN 2 Family XHAS c.sPAN WEATHER ITV/MEU Calif/Govt Acces avc WGN 1BS Lifetime NASAlPRIME MTV CNN Headline News AMC TNT Discovery Learning PREVIEW Prime Deportiva International BET A&E a""", CNBC Bel-Fl TNN VH1 Nickelodeon Comedy E Cartoon Faith & Values Disney Showtime HaO Clnemax Viewers Choice Hot Choice Showtime2 HB02 Clmemax2 Travel Gems Court HSN Value Vision FX MEU Outdoor Life Continuous Hits 3 '~;, III I Leassed Access Continuous Hits 4 SEGA Continuous Hits COX COMMUNICATIONS SOUTH CHANNEL LINE UP FOR FORM 1240 9130/96 12130/96 USA ESPN KCOX (Padres) KSWB XETV KNSD KFMB KUSI KGTV KPBS XEWT KCCP KTLA News 15 KBNT COUNTY GOVT C.SPAN 2 Family XHAS C-SPAN WEATHER ITV! KnO'Nledge TV Calif/Govt Acces avc WGN 1BS Lifetime NASAl FSW MTV CNN Headline News AMC TNT Discovery Learning PREVIEW ESPN2 MS-NBC BET A&E Bravo I Court CNBC SCI.FI TNN VH1 Nickelodeon Comedy E Cartoon SNEAK Disney Showtime HBO Clnemax Cox Pay Per View Cox PPV I Adult Showtime2 HB02 Clmemax2 CMT 'i!iililii!'::ii:i"".. Travel Gems TV Land HSN Value Vision FX Knowledge TV Outdoor Life International Fox Sports Americas 1:'!~~t9.ry..._._._.,.,...... . . 'lq,;"{?:i""'.. .. Leassed Access Odyssey I UCSD SEGA Cox Pay Per View Channel Count Sasj, 23 23 23 CPS 38 42 42 Other 16 12 12 Total 77 77 77 USA ESPN KCOX KTTY~KSWB XETV KNSD KFMB KUSr KGTV KPBS XEWT KCOP KTLA News 15 KBNT COUNTY GOVT C-SPAN 2 Family XHAS C-SPAN WEATHER ITV/MEU Calif/Govt Acces avc WGN 1BS Lifetime NASAlPRIME MTV CNN Headline News AMC TNT Discovery Leaming PREVIEW ESPN2 MS-NBC BET A&E a..", CNBC SCI-FI TNN VH1 Nickelodeon Comedy E Cartoon SNEAK Disney Showtime HBO Clnemax Viewers Choice Hot Choice Showtlme2 HB02 Clmemax2 Traver Gems Court HSN Value Vision FX MEU Outdoor Life International Prime Deportiva ~.i~tl)~......_._......... . ;lQif:"':::',.,.,",........ Leassed Access Faith & Values SEOA Continuous Hits 3 Projected 1011197 USA ESPN KCOX (Padres) KSWB XETV KNSO KFMB KUSI KGTV KPBS XEWT KCOP KTlA News 16 KBNT COUNTY GOVT C-SPAN 2 Family XHAS C-SPAN WEATHER IlV! Know\edge TV Calif/Govt Acces avc WGN 1BS Lifetime NASAl FSW MTV CNN Headline News AMC TNT Discovery Learning PREVIEW ESPN2 M$-N8C BET A&E Bravo I Court CNBC SCI.FI TNN VH1 Nickelodeon Comedy E Cartoon SNEAK Disney Showtime HaO Clnemax Cox Pay Per View Cox PPV I Adult Showtlme2 HB02 elmemax2 CMT ll'&iiiii,:'",::,::i, ",.... T"""" Gems TV Land HSN Value Vision FX Know\edge TV Outdoor Life International __ ~GTV (home & garden) :~~f..}t{:~;{::::::;:::::::::::.:;:,.:-,...:..,-. Leassed Access Odyssey I UCSD ~ ,Animal Planet Cox Pay Per View 23 43 11 77 5-101 Fedc:n.lCormuni~OIl5Cortmiaion W~D,c.20SS4 FORM 1105 DETERMlNlNC REGULATED EQUlPMENT AND INSTALLATION COSTS ~EQUIPMENT FORM" ClIIDWIIityUnitI ",r(CUID)o cabl~systcrn DIleo Furn ..00 CAOJ1:' NIlIlCO leOpentor 07f1~7 Qo.CaaullIIlllaflaor...1nc.. Mli ... A Cable Opcmor ~l~' F..waI Bld_ C<y Sm NIlIlC Title 0 penon cOIq:dc\q\ urn: WIIU.. J. J1tJ:IIauDon.. V.P. of ftnaAdal Td<p/loonenumbcr ,.~ ('IJ) 16&-SUO ('U)1"-SS40 N_, ........., oiClllllaVlIl.l MliIllgA l.ocalFnndlIs-.; 276 Foou1hAven.. C"" OIl11aVhta 1.ThII'_llbeUlCfUed:rEa.....aq..I~lntheapproprt.tebo:J.l Dlneonjunct.ill'1wrthFCC Furn ]200. FCC Furn ]220. or FCC Fmn 122S Altac:hthe: ~lttedFCCFmn 1200, FCCFurn 1220. orFCCFurn 1225 1Olhc: ITort ofthisfurn OR 0ln(O"dcrlOlulfillFCC"de$~irq:"'IIrnILlfilingoflhiSform &ur the: elate lI'1 'Nhic:h yoo]ast filed this form 06fJ0/96 ltnwnldd'yy) NOlI:: This should be !be date on Votic:h!be ralcs ]U1ju~~d. by IISing ~itha FCC Furn 393 or !be Jlior filing oflhis form. W(n in df~ct 2. Ellte1" the dlte on \lOhIdJ ,.....dosedyow books rorthelball~nfIto:kd In w. r,,",,: Note;: This will indiClU!be eM of!be 12.f1lO11bfi$Ca\yevforwbic:h)'Oll ~filqthisfurn ~,. ~"'::"7' "m."',...~bIo.,..... rEo~" ",""..."""" "'J Subchlpt<<StofPOl"lill'1 - SoleProprictorlhip OOlcrrp]l:II~apllinbelll'W] 5 - dO Plgtl ExceI4.0forWind<:Fws """'''' Approvcdby:OMB3060-0703 I(nmldd'yy) FCCFmn120S """" Appn>vcd1ry:0MB306ll-CiOl FedcnJComtu>ial.ioro<C"""":l$iM W~or. D.C ~055-4 SCHEDuLE A: CAPITAL COSTS OF SER\'CE INSTALLATION ,1.,'"0 "Ult'.,El";ANCE OF EQUIPML"" AA"O Pu....., -- _L -~ A EoJipma1landPlart v_ Too" ,...... -, -, , Qross Boot; Value SI~.8S~ ~~..56 S2.441.936,4S S2.91i)61.56 S480.D4.Sl SI.l>41.126.00 C AcaJmJla1ed Dctnciation S7.71-l,03--l.01 SI':lSl.314.16 S964..m.2J S108.160.49 S3!1..06S.00 0 Defc:m:dTaxes SI.ll5.i96 ~~ , SrLB<>ol:VaIu.{B.<C+D)] :S4.91:l."47..l1 R21eofRc:wm 0 ~oa,..,u- ,,,,, 01 Fed<nlIncomc:TuRale 0- SW.ln<omcTuR..Lc: OJ !':el TOlJJ Ineomc Tax Rale {lGl-+G2l-l:01 J O:)J '" Adi.-1 to Rdlecl rIIt:f<S1 DcQlo;OOil "', AtWallnlo:rntAmo:ut S195,4llo5/ii.OO "'. ToI1l NrL Asnu Sl.66i.377J63.00 "', BucRelumonlm~A/nOIItIl[G--IbJF] "" Inl=slDeliJdibilit~Faelor[G4aJG4cl 0' ElfediveTuRale [G1J{1-G-1dl] IC sL:iploG7] G< AdiuSllT><>fiforNoo-CCorpon-tioro< "" BueRc:wmoninvulJn<ftAnlOllfl.IG--lc] "" Diaribuli""" "" Clll'lrKouti..... (...v ""'- <xc..1l G6b) GOd Rd1JmI;Subi<cttolllcomcTu[G6a.Q6b+G6c] "" ~P<rt~5ut>i<cttolJ>comcTax!G6dG6.a] 0' G<aa-L'plW.!C.c 1/(l-GS10lhc:r.1/(l-lmxG6clll H 0.-. lW<flf~[fxG71 R<tumonlnv~Grvss.d-t.: forTucslExHl S9C.IO~.s~7'l. SI37).75.0I1 S169.491.96ll D6.~,.H6J S73.~.s,49Gl C\IITaI.ProviJionfor co....on Sl.~11.9<45.13 S176.414,41 S361.J1S.SS SlS,&l1.6S S143.169.oo , ""'''"IClpiL1l COSl5 [l+J] S-I.11-l,04i.7Si2 t.,l13,A:!U'61 W1.lO-I.SUI S7U19.1063 SlI6,614.4901 CRA.'"O TOTAl. I""'" of u... K ....Lrl<-1\ U."9.4~::7 Boa I. Spt-cilYO<h<r1. N<I.........comull..-f"'"~l.~c:n 5p<cify,0tI>c:r1 F1tctcom SClIF.DIJLE II: A.....NIML Of'DI.ATI....r; LWE.NS!:S FOJ.l. SEJ.l.\'lCE INSTAL1.ATION """1) MAINTENANCE or EQUlPMENT Salanltl ~li<s I ,....QU...-l. I -'='.;;.., .t.8alcfill Willies OIhcrT..... ( cifybdowl " ........IOp.Ii.>:;":'..c,r""S"c.II1:.lall.II..JMliI(,ofEqJip S31.901l.16Ul Sl.ist.711.nl Sll1.06..\.9i SI.103.6.11.00 $.60599.517.851 S1.738.47I.71 , GlU..'"O TOTAL I...m of U... A ..ol.....l U!.5M,U4." fIo.:. Spccif)' Other I R.t).IC"lVCf\en..OulsideLabor.F.cilitie.lnannce Spccjf)':0Il....2.lwlol........""'O~C....TIi""j...... 5-~ \ P~~ E-o:<I4,or...windowl FCCF_1l0S Juno: 1996 FcdcnJ Comwnoatiora CorrmiI:5ion Wuhirt\l:oo.D.C. 205~ ~edby:OMB}06I).(l103 SCHEDL'LE C CAPIT At. COSTS OF" LEASED CUSTOMER EQUlPMENT A Ewiprncrt ~, ~, ~, "'""""" c.._' "'""""" OIhcrEqJip. Ill. 161611.35 11043.5 518. 4975 1345610. 241113. 5613. $131.013.00 $149.919.901.00 $9,909.113.00 $1.<13-4.713.00 S13.I25.00 S9S,375.569.39 S6.6llI.324.46 SI70.416.00 S16.93IJ54.00 B TIll..l! MoitUnanctlSavice Hoo.n (AlladlE:q>lanaLiool 3&451.05 C ToPlllofUnilSinS6vicc 1754515. o QrouBooO.:Va/uC $11.002.671.00 , A~,,", ~ Sj.II3,369.90 AJnJalCapiUJCo<u[I+JJ -s5.2I1;O'73.IO Ddmed Taxes S53&.m.OO G NolBoolcValuc [D-(E+FlJ H Gl"osscd--L'pRalccfR.ctumIF"""Sdlcd-A.l.inoHl Raumon/nvc:slrflerlGn>sse6- fcrTuts fQ~H1 ~Provisicnfcr~ S11.s.c1.1661 543.446995.6"' $1,191.540.75 , S~S6~111 "'''' S&1.5n<llll.9S1 L GlU....nTOTAL[.....orLlAeKaotrlesl su.9!:!.!U..6OI4 ..., SCHEDL'LE D: AVERAGE HOURS PER INSTALU.TION A. AVEn2I'H",,",pcr\JnwiredHcmchotallation(alW:hltn''''lan''UOI11 1.05 B A'~ HOlII"SpcrPn.WirnlHcmontalIalicnClUJ,l;tIancxpl....u..n1 " c. ...~ H<><Inpd" Adojiticnal C......:aion ...U.........at Time or.....i..llnsulloti... (auado ..... ""'............1 ,., D A'= H",,",I'C'" A<Idt1i....! Comecticn nU.llati...'" n."_~'.InsUlIaticn(onad1...C'CPI..ri...\ C.13 , Od>crlnoUllotion (bvlumTvn<\' Il...,Mc,,,,onoullct Av~HClII"1"""lnsUllalion(alUch......"I....u"") C.55 ,. CcrtYat"fclac<JNrt.IDitktJtI Avtl'Ut'HOlII"Spd"lnsl.o.ILWon(aruchona:zllanoti"'l I 0.15 n...,) l......cit\~l Aun.<:< H......n: P'" InsUlloliM (allach on ~1"""l.Icnl I <. 5-- d;;l ,'>", l'~I-4.or...w......... FCCF_120j ... ,,,. Aw-ed by: OMB 3061>-(70) FcdcnJCOImUlicau<Q~"" W~..... D.C. ~05~ WORKSHEET fORCALCULATLI\;G potMJTTED EQUlPME.....' A!\'D L...n-ALLATION OiARGES STEP A. Hot.u"IySt:r<lcr 0. I. ToW~italc-.orbboJlali""ondMairUrWlCCfSdlcOJI'A..Boxl] ToW AJntal t... htallM>an pl Mai!I:...nce f~l. B. Bax 1] 3. TOlIJ italCOSUand r..........uw..nIlld~{I.ilcI+Wncl] ~ 1ndkalalJaK.I (aa.dIlll 1. 5. A.lnJaICUSlDITICf ~...~C""'- CoItsotLc:ued [LPe3x~"J TotaILaborH.......t...Mair&........ond-'..........reu..-.a- onds.....iees(........ ~"") SS,'-4'.4S5.:531.J $045.590.614.18 S51.2.4C1.010..fI1J l. S51J.40;010,4l17. 16i"860!..Sl 'UO:S2!5 """" (HSC}(l.ines.1i1e61 METI-lOD Of BILLUOiC FORlNSTALLATIONS (plaa'.. "x" III tile ~ bin) lnsWIalionr billil'd by the Iall" bued an doe HSC adwl*d in LR: ,. :l lnIlallalionr billil'd ... . -.o.rd cNrp:. STEP B..l.notalla&- ~ g, UnitcnnHSCf....:llnwla1ionl<fruuSUpA.liPe7) OR A~o.m=r...NlltJIMion b. Pre......nd Home ntanation bLHSC{I.ilc,j bl. Avenge Ho<n pa- Pre-nd Home lPRaIlalion ts.cbecklk D.1.inc: Bl b].o.rrop"'~Home~lblxblJ UG.515J 0.7 13G..5155 " x.UnwircdH......\nIU1\alion d.HSC[lile7] .~. A.....,.........p"'l.lnow'rodHome~(Sd>eduleD.Iiw:A) aJ.~pa-~HomePulIalionI.lxL1] .. ...~C~Pul""""IIITimxorNiaJnwlation d.HSC[\iIeI} .~. A~ HGn pa- AddotionLI comedion -..1la1ian at Time of PI.. Pul!. [Sd>e<bl. D. Lft C] d. OWJ'"pa- AdJitional CtJmectianPullWonal Time llr r.itial kcallation [el x <1J d.. Addational Comcctian btall.u.an .lnIuUalioo SJGJ1S5 '0.13 41.HSC[1.in<7J dl. A~ Hoorl;pa'A~ ~Pul"""k.e.q.ScJI. nwl.ISdoeWl.D.LftDj lO.o.,.p"'A4ditiaNJCameaiorIIIooWIalion~~s.p.rat.e~[c11 xdl] .,OCher\nlU1~('" iedinSdoedileD.l.P::El: el. HSCfl.,ine 7] .1..........Hoonpa-InolaII.u.anor.....l [S<:be<l.olcD.Un<:E.Ilc...I) cl~perIn<LoUal.ionorlanll.lx.~J SJGJ1SS ", .~ H$C{Linc 1\ d. ...~~ HllUI"Ipcrlrosll.llwonorllan11s.c:brtLlle D.1.inc E.llemll .6. Charf:'< pa-lMtallwon oft.....: [NX <.Sj 1)o~:m ,,, c7.HSC[l.inc11 eg.......... H..... pa-lnItallalfonofllan 1 l~lc D.Liuc E. lIem 3] d. OWJ< per btallalion or tan 3 [e7 II" oS] S1G.3!H ,. '. 5-d3 F.xcd4.0r...Windootl fCCF......1105 ...,'" h"",~ A(:vavedby: OMB 3060-0701 FedonJc.:.mu.i\Ollol.i~Conmissi<ln Wuhir{!lan.D.c. 205>1 ISH.r ~~-=- for ::r::::' dnIflcdt/y dlnensl m.e) . b , R.,,,,,, , ......, ......, >0. TOlI-l iId.i,t.".._ncc:S(niu Houn [ colurmfrom~I.C.UncB] .,,:'-:':':33<l52;9S .... m .. HSC[tine7J I S30.525S Sn.S255 S30Sl5S 12. TOlI-l~'Sa'victc-ltArltlOXUnollJ J:L1U.1e6;206l "'00 SH1&.8506 n. ~taIec.u[ col.mfrom~lc C. Uno K] u.)6lJ.S4.lnl $0.00 $36,73.1.1632 .. Tol1lCosto(Ranot.t fIi>t11-<-tArlt13) S3.54l.m.nn 'SO.-OO ~Q,15O.-613& " h\arrb<<o(UniuinSeMc-o [ coluImfromSdlco11ltC.LftCl I7S6U. .Q .97S~ " Unit Cost [Lint 14'Line 151 U;i)I92 SO.OO ..."" >7. JW.tpaMorth fli>tl&l(ll)] -so.ltiIJ ".00 ....", STErD. o.~!::..-=.~ c-~~~ ltmrl . b , (Ca......to: ,roreadl dlna'alt 1 .,.,... I .,.,... , .,.,... J .. Total~ctHcanI cobmhm~l< C.Linc BI '2061135 'T7(N3~ .......51. .. HSC[tinc7] ...."" 'S3~~2S5 :UO~5 " TlIlI.l~'S<n'ic-oCoot(Lftl&xI91 -sa.010,o-~lS6I :SSJO)60;}41 StUI2.I841 " Atnlal CmiW C-' { cobm from Sdwdul. C. Lint 1<.:] ="'''"' Si,S70,1l4:6721 $41P.;JCU121 " Ttul Cost o(C""""--{Un< 20+ u... 11) Sro.sa.7W:nn S1.fl9O..nS.2111 :'$(nm..1051 " NunDerofUniU:in SeMc-oI coluImfrom~IeC,LintC] ..... "'..... """ :5613. l~. Unit Cost [1iacl:lUnc-13] ..... 130:0939 SU31& S7US" " JW.tpaMorCh [Lft14'(l1I] ",." L SO.7193 ."" STEP E.Ooa forOOoer Lnllf'd 26 Tol1lMainl..-.nct'ServiaHGo.n(C <o&.rn from SI::/lat.ll. c.\.ilc: B] 17. HSC[1..int7J lS. TtUlMUtcnarll:t!ServietCost fl,B2'x\...iJK27} 19 .........~.....ICosts [ coluImhmSdwduleC.LintK) 10 TlIlI.ICOSlor~..., [1..intll.\.ilc:l'l'] 11. ___orUniU:.,s.n.;c-o[C colurmfi'onISchc~I.C,LintCl n tinitCOSl. [undOotftll] II IWtpaMldh [Line31J(ll)] ,. SlOSl5S "" "" "" ,. "00 ".00 METHOD Of BIl.USG fOR o-u..,;CINC SERVICE TIERS OR EQUIPMENT JpI"'" an ~J."..... "f'P""P'1ale bDl.l ... l'ominal OoarJe(Elllttlht---.Jcha/tt ",Line:).I) ... Unirorm Hourty Sel'\;u 0cJt 1 .....A"cngcOlaJ:e(Enlttd>tA~H....,ror~SeMe(Ti<nirlLincl6b.1 STU'F.Oo for ~l'ltn.. ).I Somiral o.m: (or SavKo Tiers If'i'OOJustancsal.u..sal(aldw-.:c:s.' ecan"x"inlhtboxatd>tridt OR l5 v..;formH.....-lvServiec~ OR 16 AHno:<Ooan:cfor Servin Tim I I I ., SlO~15~::Ij:'.1-: .. I "" 160.IGCIUnl:~] l6b.A.......,...H~10C'har-.:<Sc.n,<(T,,:" 16<:A~a..-,:cr.,.-~5ttvinT'....IUncl6.axLincl6b] <- E)'dV 1'~5 Elrcel~.(lf...-Wftklws fCCFcnnl205 ... "" FcOml COOWTUli(2lions: ColmIiIlSiOll W~on. D.C, ~n5$4 WORKSHEET FORCALctn.ATtNC TOTAL E:QUlPMEl'o, A....1) INSTALU,TION COSTS I. ToUJDpitaJCostsoflnstallMiOlland~~[Sdw:dJlcA.Boxl] 2. ToUJA/nW forDtalllOonandMaima1lnc~fSdoc<J,iIcB.Box2J ,. TouJAm.W CoslsotnwlationondMadcnancc(Linc I + LiIw. 2] 4. Qdt.llmcI" -.dInllalIatiunP (-.ch .....1. ~. AJnW~F";';';pm.:.:.MUaa.nccand\alUJIdill<lCosts.f.lg;ka~Coslsotl.-.l [ljnc 1 x Unc 4] 6 ToW Costs ofl.-.l Oalomcr ISdlcWI~ c.Sox 1] 7 AJnWQIItoma'~";;;;;"'..d..ublioaColU S+Unc61 a p=--AUoc:a1iOllI.OF~An::I (tuncn.CliOlll) 9 AllocUcd Am.W ond hIaJWioQ Colt 7 x Unc '1 In. andDWlalionColifUnc9/mlJ II )l,UrrbcrorBasic~inFtudUc 11 ManhlyF.....~ondnwIIlKlnCool..".Sut:s:rilcr[UncIO/Linclll 13 Wblion Faetor[.scchlnKli_l 14 AdJusUdMfdhtvEquiJ-ncn.ondnwllilionCostDCtS..bscriba[l..inc 11xUnc 131 ~,. 5-,)5 ,,,,, 1il=14,nfOfW-......s N:Jprovcdby:OMB3060-07n) S,S.649,.tSD311 .~S.s~" SS,t,24G,D70.4IJl .... U6.9SUI~toI4 -""""I%:liOI4 .... suo ....'" """'" FCC Form I1ns ... ,m FtdcnJec.mu.iClliOfllC.-ni!lSilXl W""""an..O_C- 205.s-1 Af'p'vYcd by. OMB )1)6O.(l70l ~t .n..._t..... IAltalbl;\o>n RaIn lpcnnilkd A=" , -a.tftsfur CablcScnic. !n!:taIlati..... LHourlyRat.[StcpA.Lim7J I....... ..............1 b. Avaut inIlIIlalilXl Chatft:s; I. hUJlaliono{~H_ISla>B.Une9a3] =" l./nIl&Ilationor~w........IStalB.Une9bl] SIt)7 ). /nIl&IlMillll or Additional CcnoeaHnI-'- T.... or..... hWIaUon ~-a Une 'klJ SI.u6 4.lnItaIlabllllorAdcitior.IC:nleaiom k<<aItr<;r...aLinc9dll .mit ~. Otha"inIlIIl8lianI(IDICcitVl[SUIlal..ins~,ge6.9c9J A $16."'19 . :$7.'&3 ,. ".00 , t.l~n..... furl.Asc o{RamU CoIIn>Is [SIal c,t.ne 17,I;Obtn Hl Ranot.CanIrolTypc:l: 1 .." Jl.anotcCanIroI........2: ....... "'00 R.emolI:COIClII........]: ......... .." , M fufl.AscofConvata-Bol= [Stq>D.t.ne 25. a>lurr-.-.I~l CO<M:I'tOl'" Box Type I: ..... .. n~1 C...-tcfBoxl\'P"'- "''' ClIf1Yerta"BoxTwc]: ""' , r.lcnhlvo.n:cf..-LcucofOcbcrF--""ftnon.!StcpE..Linc11l """' ) I 10.001 , ~f..-a.r.r..-.Ti....(1f""'I[Slq)F.Lincl4,lS..-16cl 1 so.ool SUMMARY SCHEDL'lL UttOR COST """';0 POUCY OUNCES IMiCl.l.}"."..-....lolhcfollllWint;lIn....cstionsbypW:irlgan"x-inlhc:~.box 8: ......,.._,~.....a""'_""""""''''''<.....,........ r~Dti.,...._, n,>;;:-'''''''''''''''''_.......'''...'''''''''''''''''',...., DI'O l_lf}"OOl'-nfik:dthilformbcf(ll"t.,-""yvudlangcd..ypolicy.._"..toalcc~orroa.IIOCl1l.iOlltlllt""'K1-""inacucinlhc:costs IlId..dcdinlhc.~oflO<p'ipncn.llldinluJt.liono<;:h.tp7 !lYESlYoulfl1<{llLIch.tul1apl....tiOll) DNO CERTlHCA T10N ST ATEMU'.T \l,1lillJL FAU;ESTATEMEl'oTI MADE ON THIS FORM ARE PUNlSHA.BLE BY FTNE ANOIOR lMPRlSONM&, (tH_ COOE TTT1.E II. SECTION lOOI~ AhLYORFORFEJTURECU.s. CODE..1ll1Jln.SE.CT10N SOl) 1 c-cnil'yUalIhc:lWancQJlI>Wo inthilformor<:lJUc-.lC"",,ClIOIhc:bal.or"'Ylr:Mwl<dr<lIIdbchd.Md.-.:..-.dc in~ iIh. Nuncoflh<c.blc~or Sip.run en.c-.........U""...lnc. ~. Dol. TitI. W\W..,J.~..".r,olno.lIId.1 5~ ), & .....' Exccl~.ororWindowI FCCF_l~05 ..."" -< \,r., t, \ .> <:'~ S159 Feriera! Buui::<.i-ilil San Dle~.jl', r;(jII;.:;'nliJ 92 lO~J ;l-1gC 16191153925' October 9, 1997 coX Mr. John Goss City Manager City of Chula Vista 276 Fourth Avenue Chula Vista. CA 919] 0 COMMUNICATIONS RE: Cox Communications' Filin2 of a Revised FCC Form 1205 Dear Mr. Goss: Please find thc enclosed Revised FCC Form 1205 which establishes Maximum Pennittcd Rates which can be charged for installation and equipmcnt As you know, Cox Communications is filing this form on a company-wide basis. as permitted by FCC rules and rcgulations, We had initially prepared our FCC Form 1205 report using estimates of anticipated costs. intending to replace the estimates with actual costs prior to filing, Recently, it was determined that some of the estimates had not been replaccd with actual costs, Consequently, we are submitting a Revised FCC Fonn 1205 for your review, A copy ofthis revised FCC Form 1205 has been forwarded to your consultant, Mr. Jay Smith of Public Knowledge, Inc, Since we are filing a Revised FCC Form 1205, we have chosen not to increase any equipment or installation rates for the period beginning November 15,1997. Should you have any qucstions or require additional infonnation, please don't hesitate to contact me or Mary BalL Manager of Govemmcnt and Community Relations at (619) 266-5203, Sincerely, cc: Mary Ball Enclosure: Revised FCC Form 1205 5-J, FodcnI~~ W~D.C.1O'$04 FORM U05 DETERMlNtNCREGUU..TED EQUU"tdENT AND IN!TALL4.TlONcosn ~EQUD'MENT FORM'" "'""""'" "'" F~ .,.... .0 Car. Cl..- - ........lK.1 ... au o-a...a1iDu, lae. lofIOLabHevllDrtn: "'" " ....... - - ~ ..... ......""""'" T ..... Fu""" "'-"'-"" ........7."" - c..__ Mailq Adcha 0 ......, "'" I- I~""' l.TlII.r_bbdncftled; r~.."1~IBlKlIflIl"'Prl*boIJ Dkl~widlFCCF_1200.PCCFonnlno,OIFCCFonnllli. AA.o.dlIht ~ctc<lFCCFDnIl UOO.FCCF_lllO.OIFCCFonnllli l<>1ht fnn. ofthiJ fuIll. OR ~klotdorl<>AilfiUFCCrula~"onUIltuqo!dUfonn Erta-dled*on.mic:b".......ftlcdltafonn l(nmIcllYyy) Nutc:Thif;.....1d1K1ho ~ "".tlOctr.lhcnla .....;.-ltkd.by~eid>a-FCCFonn3!n 01"'" !riot lU.. ollNs form....., indJtd.. 1-_> 1.. [00........ ~_.......,... doloed~"",*"""'lK rbQI.,..rdIiedaIIB thb r_: Nau: ThU:~U mau Ih<. aldol...., 12-mmd1fDaJ ~rOl~)'<aJ.... ruqlhiJ.fonn. .",,'" ~' ;;-~"",:",......"'__.,......r-_"'.""''''''''","I ~seotpcntion - SolcJ'T1>prictcnhip Od>a-[l'leaseccp....lKl_l ~-d7 ....' ExuI~_Of<J(W.......... AfIprowdby:OMB)06Q...(I7113 FCCforml20S ""''''' ApJnNcd by OMB 3060-<1703 FcdcnI~~ w~D"C.2C;'iS4 scm:otlLEA.: CAPITAL cosn or SERVICE IN.UALLAnON AND MA.I!'I"TE.."\ANCE or EQUIP'MENT AND f'UJ'/T A ..."'" v'"""" -- T.... .- _I. """'" -. """'" , ""'" ,...ov SIU53.6~] SI~O.l61J)6 Sl.Ir.U.U.OO S526~1-52 SI.759,_311 c A_ s.'!,I1J,0K3.!306 S667.017.17 SMI..5t5.oo n4o.13-4..11 S769.063,0 0> ElfcetivtTUIUu-(m..O-G4dl}1 QIO07 SU27.1n.l&404 SllI,9D..16 "si9o.n!..n11 s..c1.166.65 S3n706.6ol o Ddemd Tua E Net Bool: Valu~ (B-{C*D)] lUuorR#lUm G ~"Gnw- kw Gl FcdcnI"""""Tu-1Uu- G2 Sbkb;::omcTuIUu- Q) NdTotalklcun<Tu:bIJ:[(Ol+02}{Ol..02)) '" A lORdlc:ctbaalDeOocliJil" 04. Ac:tuaIlrur<:IlAmou<ll: O4b TatalNctAsll:U G4e BucJtmmCWl~ ......-{04b..F} O4d kUnslDocUdi>il' F.,;Ur [G4aIG4c] '" A r~No><: 06a Bu<-lldumon~AnIoI.dCHt) 06b [)islribo.oti.... G6c ~(_no(cr;g:cdG6bl G6d Il.ctlRI IOft:IlmcTuIQ6a.06b-+06c) G6c IUwmI P 10 b:unc Tu 106NG6a] G7 r.- Rak[ 11(1-0.5) Ollw:r.II(I..(W"G6c)) H ~ RAUotlt.l:tan(F..07 RdlnCWl~Qroaed. r...TUIOJ{Bl<H] CUn'tI1Pro..;.;onfOf , .-......JCapillIc....\I<J] SJ,<4204~.'U51 , GRAND TOTAL 1_ flI Uooe K ..trial ""'..,.,, ..... SpeOl'y.OCN:l"I.NdWIrl;c.-Ilrt>ll...rOf~<torMrt<n SpecifyQU...-l.F\ectCOm sa-tmUU: B: ANNUAL OPDlAT1l'1C EXPENSES FORSERVlCE INSTALUTION AND MAlN'l"ENANCI: OF EOl1lJ'Ml:NT """"'ia I I "'::::.1 I _'::';,~i_, ........ Uilitia """'T~ . bd_l A .-......JOp.~fOf~nuI1.ondMart.or~ip. 129.116.176.00 S1.697._.00 s27I.1ol.ool SI,I96,Wil.oo[ S6.m.OII.~l S2J93.I96.00 B GRAND TOTAL 1- olUooeA...vw.1 UUl6,SIUl .... Specil'y: Other I. MMConvertcn-.OuuidcUbor.F!KiJitica---=< Specil'y:oo...-1AJII,QIeaKl.Aulo~C'<wrmini- 5/ ;Ie; "<<<' Iintl <4.0 rOfWindmrI FCC Form 1105 ....'" Fedcnl Cm'r!u>ial.i_ CcxmUsion W~D.C. 105~ Awovcd by; OMS 306G-ll7OJ 5On:DULE c: CAPITAL ~ OF LEASED CUSTOMDl. EQUIPMENT A ......, ......, ......, ComaU< , ComaU< , c~' """ , T'" .~~{A1tadI 1...u1Wl) ,,,,, 1,(1,460 16.710 C Tgta\lIorumnSame 2.216,69'1 2,331,339 126,.(IS D OroaBook.VaIuc SI~.692.135 SUl,0r7.as.t SII,73I1,OOl.oo . ""'""',... .alion 15..(S7.9~ SlIW7,026 SVlW,nU6 ......00_ f~Tucs (OxH] o.:fmedT..u:s G NctBooi::Value [D-(E+F)] H Gruacd- ~orRmR[FromSdlecl.A.LineHl o.rcn.P'r'oYi.Kmf~ .- K A/nlllCapilaICoa[l+J] L CRANDTOTALI_olUooeK..trbJ "'"" SQlEDULE D: AVDlACE HOURS PERlNSTALU,TION A A~Hoon__l..IrJootndHornenuJJati",,(acu.cban"""'.....tion) 1.0~' , A__Hoo.nocrPre-WIRd~inotaIlation(llladI... emw.hon) 0.6317 c. A........., HoI,n __ Alkiti...J Comedial hDIla1.ion at Time orntial nullatioon (1lladI WI <:>nbnWool 0.$5S1 0 AVPnO'" HoI,n......A6cliti<<aI Comcctiookoolalla1.i"" )wlalWioo(attadllll....1anatian) 0.7~ . Olberinotallationftrv.....Twc:): __ Mcm: .. oo.cJ<l A......-HoI,n..... hD1t.tior1(attadllllembnWonl I ''''' .. ComaU<"'_i_ ^~CfUC HDln l>U hRallwon (IlUm on eml...ulWl) 0.305<1 1l=3.{",.,ifv:j A~CfUC Hoon .....1not&Ilwoo (olladl on <:mlanatioo) 5-.30 "'" Ex,ol4.0r...w.......... FCCFonnllOS ..."" Appf..-Iby:OMB)060-{I703 FedcnlCormlrialionoCamlission W~D.C.:105>4 wORKSHEET FORCALCULATJNC PERMITTED EQUIPMENT A.'ID lNSTALU.TJON Q-tARCES mn ...-ao_ , ,.. CoIUotbtalL.uonmd~[Sd>edJleA..Boxl] "S04M1.194.2-7 , ,.."""" frrntalllilion md MUumncc fSdoc:OJ.le Ii. Boll:1} S41~~19.OC I ,0000c.oitalCOlUapdOb<nlir. frrhlallatiooaro:l~[Unol+Line:1J. ~~.sU.2"'l ,. _.~~;;.:.....nnhlallllion (Illadi~jllll). L I. ADualOIttmncrF4lilmcd~a1hla1laUanColU.~Cosba!LcuedlimDncrt[1.inc)JlB~] .....$4M.7.i:IS~ ,. ,0lIJ 1.abor HaIn ftw ~ apd hlaIlUim orc::u.-EouPncR IlId Seniees (attach- ,..,J-uon) H984S9. ,. ..- (HSCJ(U>e5.lL.iPe6) SJl):~ METHOD OF BILLl1'<C FORlNSTALu.nONS (pIa<z _ R:l".. Doe ~bo:l) DullaliOlW billed by Ibe IllIIKbucdllllIbeHSCc:aJgJlalcd ill Line 7. 1 nulbiion1 billed u alWlCiu'd d1qc. STEP Po.. ~ Ooar-re . tJpit'lIlm HSC for all inoWblicn (Ff1IIDSUp A.. lirle 7) OR 9. A frrhlall:liion e7. HSC{'Linoe 7 el. A-.Hounpcr......~r:I.....) {Sd-.<ld.aleD,Ln:E...... lJ C'9. Ow!CpernuJlU:Jn orlan l (elx elJ no"", G.&n7 ...1JDorin:d Home bWlIilion aI.HSC{Line7) al. A-.,eI-kJonpcrllllwndHomebtallMion(S<:hcOJ1eD,LineA) a3. OIIIF per l.Inoofid Hgmc DbllaUan (alll alJ b,Pre....ndHome~ bl. HSC {Line 7] bl. A-.,e Noun per ~ Home nuJ\alion (S<:hcOJ1e D. Ln= B) bl.~per~Homehlalllilion{bIJblJ ~ ,.o.dditiomJ CGmedioa bWlation at fine or nuaI btallal.ion et.HSC{Line7] c1.A-.,eHounperA~~hWIIililllllll'''''of w.. nulL [Sd>oGUcD,UneC] cl. Ow!CperAdditianalea-c:ti<mhUllationatTnot hlW huJlalion{clxQ] d. AdditiGnaI On>edian .....Iation hWIIilioa dLHSC 7J d1.A\'I-l-Iolnpa-AdditianaI~~1Lai- SqI.bUll. (SdleGllcD.LineD] d3. ~per AdclilicnJ On>edian.....Wion~....Sq.nU hlallalionfdllld1J ..000000nuIlali<n(A>: . cd in Sd>edJk D.Ln= E): .1. HSC [Lin< 7) .1. ^"CR<<" Hoon per huJlalion ofl.cm I 1~I.D.LineE.l.cmlJ 03.~perhuJla1ionofl.cmlidxd] o-l.HSC[1Jne7J d. Avr:n.t;e HounperhWlMion of.....:1 {~leD. Ln: E......:1] e6.~pcrbl.allWmoflan:1{o-l llUJ no",' 6--31 FCCFlIlmll0~ "",,,m EJ;;c.l <1.0 for Wm.:rw. ....' ~try:OMB3()6(l...{l7()] F..xnl ConDuoiClltianl Comniuian w~D.C. 20~504 ISTO'C. CJwJc:srorlc:uedRmltJlel dlIf(ftlll........) . . , ICalaal.it...........ld>'roreadl ......1 ......, ......, 1;, TouJ~ccHolnI ""lurmfNlmSc:toed.<I~C.1BBl 36tt7J13~1 ........ <.. " HSC[Une7] 'S!O:~ S30.4fi9 ."'- I' TtUl~ceCost [Une 10 x LiP< 11] SI;I~ "'~ ..... Il ...., ""'" , cobmfNlmS<:hedulc:c,1iI<)..1 n.,..<f.Ilt1.U41 ROO ..... I'. -~TtUlCllll.ilC~ [LftU+UlcI3J ,*,J:1l~ SO;fliO ..... I'. }UrilcrorUnitt..~ , columIlhmSdlcl1lIeC,UxCj ;':;':~ .. 16. ""Cool [Ulcl.cII.RlS) .niCl :':sUO .-:>SO.OO, I' ..."....... (LineU/fl2)] ;:SO.llCl4 ::Sl);90 -$4.00 STEr ~~~ ::~'::: ::=.....a::......dltrcnoot........) . . , ""-""I ""-"", """'_. 18. ltUl~ceHo.n' ~henSdlc4llcc,Un<B] 'N-kS?.nM :111728_0'279 ....... ... I' HSC[Lix;71 .:'UO:U99' ;:':;'::;::I30.41S'9 ."''''' 20. lot&l~a:QlIIl. [Ule Jlx 19] . S1,3Wl11::ms <::"t!D9.'1,t4231 :so.oo ,I. ...., ""'" c:obm hen Sdledalc C.liIc K] ~;1493004' SUJIJ.i1,<US .... " Total CllIl.ofCarrtata" (Iilc2O+I.in< 21] S71.;669~m9 S2J"j:,00l~1 .... ". Nomt>croflbiu inScrvke I cobno hen Scbc<1>lc C. LiP< C] m3!l39; 126415. ...... ... " ""Cool (Line WLinc 23] ULH41 S9.<fS61 "00 ". bUpcrMMlI (LRW(2)] 'SU"l SCJllI ..... mn lorotMl"u-.d~ " TouJ~ctHoln[ o;Olurm&-om Sdlc4II~ C. Un< B] .. " KSCrune7J .~ ". TuuJ~Costrune26xLinc27] so-.oo 2'1. ...., """" coUm &un 5dleOJ.1~ C. Uno K) ..... '" Tot&lCOllofM.tilmat fLinc2l+Linc29] ...., .1. NIm'ilerofUnitt..Suvicc[ eobm hm SCboWlc C. Lft C] ............ n. thtCostrune)l/I[.jno)l] ;'SC.t>> " lUUpcrM<dh {Lint 321(12)] SO,OO METHOD OF BILLING FOR QiANGING SERVICE TIER:'! OR EQUIPMENT (pI__ .. "J:~. Uoc.ppropiate bm] 1 uINorniraIOlqe(&u:rlbe__ct.p..Ulc304) UIUnifotl'l'lHouriy~o-p: .... AYCn<<" a.rp (Erur lbe A-. Han for ~ Sa"vicc Tion ill tine 36b.) STE.PF.OI 1or00 ).\.~ tor If USC:lOleacal 0' 35 lA~formHourt Scrvic~ 0' ...-n... s.n;c:eTlcn ~~of ..-.,...inlN:boxotlhc S1.00 '" " A r. SaviaTion S30.'4C9'1 36&.HSC[Lno7] 3Q,.A~Hulnto~s.n;c:e Tion }&:. Awnr< OouJctor ~Scrv>ec Tion [Lnc}60. x tine 3Q,J 5 - 3:2- "'" Extcl~_ororW"""" FCC Form 1205 ,...dm fcd<nl Conm.anicWarw Cormliaion W~D.C.1Cl5s.4 AWVYedby: OMB ~?Cl3 WORKSHEET FOR CALCl..IL4.TING TOTAL EQUIPMENT AND INSTALLATION COSTS L T'" '" DfbUlbUon II'IlI ~ (SdooGm A. 8m: I] .:;=::$(4S1)9'..2'1 ,. T'" ...., for bUll1tioa 1I'IlIMUta...:e (SclvOIle B. 8m: 1] ;=}:j4i:DQ;1I9'~OO ). ._TDlII ArnIIlcioUlCOlbDf~-S~{UPe 1 + Line 11 :":':';':':::::"'5;111.11$31 .. """"'" IIIdftlalWioa~(1lI:IdI IIMtilllll. ,. ...., """"'" ~lIldbUllabooCOlU. CoIlI:Df~El:W:mI:rt "::-':'-::':11);00' [Line 3 x Line 4) ,. TalaI ClDital CollI ofLcued QuI.ama" (SdIeOiIeC,Bo:r:3) S~ts3~;mt 7. ...., """"'" Illd ........ Cou rI.ft 5 + Line 6] S;O~~ .. P<r'eaUB A1loc:1tian 10 fTwdUe Area (-~) .. All--' ...., IlldbUlllUonCM[Line?llLineI] --;-:.:--so:w ... Illd bUI"'on CM [Line t' (12)] -:'-;"':SQ;jM). II. NwrbcrofBuic~infnn:hiK 12 M v Fnuinrnort and NalIWan COIlpa-Sub.eribc:r [Line IOfLine 11] =IlDIVJIO! n. inllar.ionA ._Fma-[Se<:ntrvcti....] " ^ M ............d Nallar.ion CM sw-ri>a"fLine 12 x Line 13] '=<<n'Y1OI 5-)3 ...." EKeI ~.O fnr Wn:\oWI FCC F,.,.,UOS ...,'" FeOonl Camuoi~ Cuuniaim W~D.C.105'" eunaot"'- ...-,~ltoo..... IpenniDcd I..... L n--r..CableScriic:ebW1ali.... E;[ LU.....tvRate~A..l:ine7] ~ 'b~A---~~ L nt:.Ilati<mof~HamafStcpB.IJne9a31 :"''';:'::::\:::S:iiJ, l.hU1lalionofPrcwftdHona(Sli:DB,LB9bl] '::":<:;:::{::;:::Siil':#' 3. hla1IIUoo of AdliticaI Coma:Ucn at TirDt ofDtial htalIalicn [..... B.l:ine~] .. :::Si&:;~ ~.ht:Il1atiarlof~CamectioPI hlalI(SlalB,l:ine9d3] ,. Qlha"btalIIticu( [ B,Ln:l9c3.9c6.9d1 LW&lIF'"1Ih :'::$2Cl:94" b.'""""'"' ::.:::-~: ,. , MordII" n....... f<<1.aKofIl.al.uCauola (SttflC.l:ine 17, colulms.-eJ JlanatI:CcdrolT'wwol: ":-iOX. bmoteCcdrol----:;:::-1; '-'::-::'10;00 JlaDIlte CcnnIITvlo< 1: '-"-:::SO;iio' , for Lcase afCallYenerIk=l [SttflD.LB15. cobml....:) Corrvata"BcD:.........l:~ SHo Corrva1a BcD: -1; Nm-Add-aable .--......-'::::'~;ii CaM:l\a"Box-,: .....:-:'SO:iii6. . f<<Lcase o(Odla"I'1lU""""" [SIalE,l:ine 13] """ l so.ilo:l , o.-.:<f<<"- Tia1:(1f I [StalF. l:ine 3-(. 35 or36c] I -liiIQ'l SUMMARY satEDULE LABOR COST AND POUCV QiANCE.S h:licMcyew_...h:foll-'"lllnc..........byf>ladroB.."x"inh:~box l.HoWyouindudcdlhew.ar_....a.tcd1lrilh~Qblecrop.in)'lU'~farPtWn.t&I1alim' @: 1.Ho""youc.piufuz:dlhebbor_~wiIt1~able<hpl'l [TIns 0"0 l.lfyout.v.:tlledllU fDl'll'lbdcn, haw you d-.r1p:I...,.policy.c-&-. g>St~arcost a1Loatioo\M1 auKS'" inc:rusc: in the eOtU indudedinlhe~o("",,~MId.....J1.u....~ WYES.lUapl-'anbcloV' 0"0 "/"u.(suant 10 the FCCI R.cportand Orderrelesascd June 7,1996 "AggRrtion ofEquipmc:ntCom By Cable OperI.ton" the FCC tmmdcd iU rules toimplcmc::nt Section 301()) of the Tdecommunications Act of 1996, wtUc:h allows cable opcntors 10 ~Il; on. franchise, 5)'Stml, regional, ()( oompmt)' kvd. their equipment co&b into bro.d eategories. Prior 1'205s wc:n:ClOOlpieted on..ystem bujs, nus 1ihr1g..... ge:nentedon. oompwtywide buis uw:I didproduoe:anincreuoe in the converter rental rate. CERTlnCAT10N STATEMENT WlUJ'Ul.FAUESTA~ MADE ON THIS FORM AAE PUNISHABLE BY FINE ANDiORIMPRlSONMEm' (US. CODE mu: It. SEC'J1ON 1001), ANDIORFORFEnVRE(lJ.s. CODE. TTn.E ~7, s&:T10N SOl). Ic:ortifytt.tlhe _~ iIIllla farm IR trvc ..dcorrecllolhcbeltofmyknowlodsc llIldbclict..d...,.,.de: inpodfaitll. N_DfIhcObk~ spre Cox Communications Inc. Oou Title 09/30/97 Director of Rate Regulations 5-3i ,.,., Exctl~.Of<<Windlron Apj:nIYedby:OMBl06(l-{l70J FCCfDl'll'll105 ...,,,. PUBLIC KNOWLEDGE@ ATTACHMENT 6 3510 SUNI<IDGE DR S. SALBl, OR 97302 (503) 581-0878 FAX (503) 581-2026 2828 ~.E. STANTON PORTLAND, OR 97212 (':;03) 2117-727:) FAX (503) 287-7323 October 10, 1997 Mr. Gerald Young City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Dear Gerald: I have reviewed the Federal Communications Commission (FCC) Form 1240 and Form 120S submitted to the City by Cox Communications (dated July 14, 1997). The Form 1240 sets maximum permitted prospective rates for regulated programming services for the period of October 1, 1997 through September 30, 1998. The Form 120S sets maximum permitted rates for equipment and installation rates. Cox has indicated that it intends to adjust its rates beginning in February 1998. On Au~tJS,.1~97 I, prepared ~. information request for Cox regarding both of these filings.. Cox responped. ori~eptemJ;er 3, 1997 for the Form 1240 and on October 2, 1997 for'tIle ForIi1120S.' My review'iiiidings based on the filhigs,supplelTIented'bythe Cox responses, are reported below. Form 1240 I checked the following aspects of the Form 1240 (focusing on the basic service rate, which local franchising authorities regulate directly): . Compliance with FCC instructions . Application of the correct inflation factors . Consistency with maximum permitted rates determined in the previous Form 1240 filing . Consistency of channel count and rate information on the FCC Form with supporting information provided by Cox . Reasonableness of the reported programming costs . Accuracy of the calculations performed on the worksheets. I found 'no issues that wquld cause adjustme~t of the maximum permitted basic rate submitte~. by Cox ont~efoim )240. _. . ., ~. . . . to 1 COSSUL'J7NG' ASLJ INFOIWAno." ShRI7GS FOR PI 'BUC AL4SAG'EMEAT E'\CELLE'VCE Form 1205 I checked the following for the Cox Form 1205: . Compliance with FCC rules and guidelines for reporting installation and equipment costs . Accuracy of the computations on the form . Reasonableness of certain supporting information that Cox provided in response to my request, and consistency of this information with that reported on the form . General consistency with cost allocation and reporting methods applied in previous Form 1205s. -T~s-year for the first time Cox filed a consolidated Form HOffor its systems nationally; this is permitted by the FCC. In the past the Form 1205 had been based on accounting information specific to the system serving the subscribers in your community. Because the national filing in effect averages costs across subscribers in all of the systems included, the resulting rates can be quite different than they would have been if the filing remained system-specific. The changes in maximum permitted rates for installations and equipment for your community are explained in large part by this shift to a nationally consolidated filing. In response to my request, Cox provided work papers for 18 Cox systems plus recently acquired systems included in the national filing. I spot-checked selected systems for reasonableness. I gave added attention to the two systems I have reviewed in previous years: Orange County and San Diego County. One of my key concerns was that the procedures used for these two systems remained consistent with those applied in the past, and I found this to be the case. Although the Form 1205 that Cox submitted with its work papers differed slightly from that it filed with the City, I did not identify any material issues that should cause the City to order maximum permitted installation and equipment rates different from those filed by Cox in its Form 1205 submission. Recommendations I recommend that the City accept the maximum permitted basic service rate as filed by Cox on the Form 1240 dated July 14, 1997. I also recommend that the City accept the Cox equipment and installation rates as filed in the July 14, 1997 Form 1205. No City action is required under the FCC rules to implement these recommendations, but you should of course comply with any State or local procedures applicable to cable television rates. ur ;L 2 If you have any questions please contact me at 503-287-7273. Sincerely, :t-<hJt. ~ Jay C. Smith President, Public Knowledge, Inc. &-3 3 AUj-27-1~ 14:46 n.J.t::l...lL.~ , PUBLIC KNOWLEDGE~ ATTACHMENT 7 3510 SU!\'RlDGE DR S. SAIEM. OR 97302 (503) 58 H1878 "AX (503) 581-2026 28~ N.R !;TAN'rON PORTl.AND. O~ 97212 (503) 1$7-7r73 FAX (503) 287-7323 August 27, 1996 Mr. Gerald Young CIty ofOfJla VISta 276 Fourth Av= CImla Vua, CA 91910 Mr. Bob Hain City of Imperial Beach 825 Imperial Beach Blvd. Irnperial Beach, CA 91932 Ms. Lealk ~ and Mr. Park Monia City of National City 1243 Ne:!iona1 City Blvd. NatioDaI City, CA 91950 Dear Mr. young, Mr. Hain, Ms. Deese md Mr. Moms: I have reviewed the Federal Cnmmllnications Commission (FCC) Form 1240. (dated June 24, 1996) and Form 1235 (corrected Forni. dated May I, 1996) submitted to the Cities of CImla VlStA. Imperial Beach, and National City (franchising authorities) by Cox CQm"",mlcatiOO8 (Cox). The purpose of the Form l240 is to set ~m11m pennitted ~ for basic ICf'Vice and cable prop....,..ing MrViccs (CPS) for a projected period (in this ease, the period between October I, 1996 and september 30, 1997). The purpDllC: of the Form 1235 is to adjust rateI for cable lIl\tWOrkupgrades - Cox seeIa to apply1be Form 1235 to add an "upgrade" i=.....em to the ~lITI permitted rates det.a~ on its Form 1240. The Cox fiIingJ were identical for these three franchising mnhorities. The fta1'f"j,j.;ng authorities directly reJUIate besic service rates; the FCC regn'otee CPS rates, but UDder certain conditiOIlJ ftanchising authorities may trigger an FCC ~cw of'the CPS rate by fi1ing Il prop<< complaint. I nMewed the Cox Form 1240 for compliaDce with the FCC rules. c,-hvI the <;&Ic:ulationll, and ,,,,-,eel the ~ of' certain key data. Under the FCC rules Cox 11\II.Y adjust its IDJXimum pennitsed rateI to account for inflation, changea in exterDIl c;ost.& (fur .xampI.e, program acquisition COItJ). and cIwmd additiOllJ or de1~. I found no matcriaI problema in the Form 1240. Under the Form 1240 IYJtem, the fill1dliq authorities will have an oppartuDity. ~ from nowto compare actUa1 QOItS I CONSUL7'It>lG AND lNl'ORMAT1Of" SliRVlCES FOR rUBlJC /MNllGI!MENT EXCEUF:NCF. 1- 1 ..... .. ~ ..' ~ to certain costs tlutt Cox projected in this fi1ing and to make adjustmeata ~rdingly in the prospe.:tive lIIIlXimum pe<witted basic aervice ra1es for the ~uent period. While 1 found the m~""'''I pelllbtt.ed basic aervice rate of$9.74 detcnnined on the Form 1240 acceptable, I diHgroe with the incn:mems that Cox _ks to add to this rate and to the CPS rate hued on the Form 1235 filing for cable network upgndes. Cox reporU that it upgraded its c:able system lIIIrVing these fPmt'hi,;"g authorities; previously the Iy1tem had 450 MHz capacity, and now Cox reports 750 MHz, wdh 550 MHz 8Ctivaud. 'IhIs there wu a reported increue of 100 MHz in activated capacity. ~ f , I do DOt believe that Cox properly allocated the coats of the upgrade in cIctermining rate ad.justmc:nu fOr regu!lted ~c:es 011 the Form 1235. Jl"8','ned services iDclude the !laic IerVice tier, which is directly RlgU!ated by the 1i-tfti'],;,,;n& authorities, and the cable programming JmIices tier (CPS), which is regulated by the FCC. Reasons that the Cox allocations were DOt proper include the fullowing: · The FCC rules clearly provide that 1Ubscribe:'S should not pay for plant that is not uaed and use:ful (see, for instance, Second Report and Order, Fa Order on Reconsidcra1ion, and Further Notice of Proposed RuIc:makiIJg. FCC 95-S02, rdeased January 26, 1996,136). In this cae, 66.67 pertoent of the upgrade (200 MHz of the 300 MHz upgrade) is not curremIy us:d and uacful. Yet Cox c:xduded only 20 percent of the upgrde cost as not uaed and useful. The Cox miona1e is that an upgrade to only 550 MHz would aBegedly have cost about 80 percent as IllIld1 (Cox estimate) as the actual upgrade to 750 MHz. Thus Cox hu IIpplied marginal coat concepts to its allocation (the conteotion that the marginal COlt of the Jut 200 MHz of ~ty addition ia leas than the cost of the first 100 MHz af'the upgrade). However, the FCC rules lpecific:ally require afiJly distribu/uJ cost aBoeation methodology (see Report and Order and Further Notice of Proposed Rulcmaking, FCC 94-39, nrIeuod March 30, 1994,11 226 fL). Under this approach, each unit ohdeled capacity should be treated lllI if it com the IllUDe as the other units of lidded capacity; ooe-third of the cost should be allocated to the first 100 MHz (which ill uaed and useful), and two- thirds of the cost to the Wt 200 MHz (which ia not ulled and useful). UnIesI: the fu1Iy distnbuted ~on approach ia IIpplied, ~ rates paid by subsc:ribenl to 1""'S',Iried JeIVices included in the 100 MHz aetivltcd portion of the upgrade will include a disproportionately lafge share of cost compared to those: who ultimately U8C services (likely to primarily be unrogulated) provided in the remaining 200 MHz once it is activated; that is, there wiD be croJIlUbsidies. . Once it had excluded 20 pen;ent of the upgrade cost fur the 200 MHz not CUlTattly activa1ed, Cox a1located the remainina cost based on the total channel count by service tier (buic, CPS, and all other) after the upgrade. Cox rcportlI74 activated "M"nels IJ:ftr.r me upgrade. mN"ding 18 buic, 41 CPS, and IS "other." So, for example, about 24.3 pc= (18 divided by 74) of tile m1idual upgrade cost that Cox l1lpOrted as \lied and useful was allocated to the basic tier. Yet Cox did not add InY basic r'Nnnrfs in the upgrade - there were 18 basic cbauneIa both Wore and after. Upgrlde coati may 'j_ 2 dicatel.u'" - .' 0\ r.....- . "/ 6. In '\0\15 flhng . ri.sd.ictlon. nt n\1o,& ~ 1. StatuS of fre'Y 1 '140 fl\ed i.n anY )~, \'lith the FCC'? date of the roost reee CC Form - eV\ous') tel" the \"""$ the nrst f 40 been ft\ed ~r l{yes, en a.1s t\l' _r" 'C......-m \1 , , yES r=====:J ;1 / I ! I ~ 2ll~ N.E. STAN"rON pZ7-1996 14: 56 Pt.IILI C I<J-G,LEDGE l~r(~ P.B4 be passed through to subocn1>en only if1he opend:or dernon8lI"&tes thai the capiW invcstmCD1 actuaI1y benefitllUbsc;riben to regulated aervices (Report md Order and Further Notice ofP~uyOSCC1 Rul_lMflg. FCC 94-39, released March 30, 1994,1 287). In this case, there is no ckmonJUBted berIt4it to basic service sublCribers Iince the channel aIlocanoo for the basic tier was not changed by the up~ Tbcl'e:f'ore. DODe of the upgrade COlt IIbou1d be allocated to basic. Further. the allocation between CPS aDd other setVices should be buod 00 the cIwmel additiODll directly asaociatecl with the upgrade, DOt thole on the l)'IleID owrall (Cox already reccMI'I through its beoclunari< rates foe the c:hanne!IlIVlIi1able before the upgrade). . Cox did not indiCl!e III! ~C(;ted m'CDIlC for the adivated c:apacity involved in the upgrade. Tbe form iDJtnlc:lioo5 ca11 for the operator to report prc.j..a.:.d advertiIiDg. cornmiJSion, aDd leased w;ea rewmes. among others. Cox's channel ~up iDdicates that two of the lidded cIwmeIs are home shopping, and one iaIcued acee<~; othen \Uldoubtcdly carry advertising iDIlertions for which Cox will be oompcnsated. If reported, projected revmme would be an ofl1et to upgrade costa 5II0wn on the Form 1235. The Cox projection OrDO added revmue is limply implausible based on the indicated channel additions. . On previous FCC Form 12105 Cox Iw reported channel additions on the ers tier and inc;reued its rnaxirnnn permitted rateS for the ers tier under the FCC's "c:aps" method for treating added ~. COl< bad used its fun $ 1.20 "cap" (plus programming costs) for the added channels before filing this Form 1235. All but one of the channels that Cox added under the "caps" method wm made available by the additional 100 MHz that C~ actiwted in the uppade frol1l450 MHz to 550 MHz (oDe channel was added befoN the upgrade). By now claiming the upgrade c:ost that in part reW.es to the as capacity usociated with the "tap" me additions Cox would be reoo~ twice for the added CPS ~, OIlCC in the "cap" addition and again in the upgrade cost anoc:ated to the CPS tier. This result could not ~ reuonabIy been the FCC', intent, and should be clarified by an FCC review of this c.oncc:m. As a consequence of these C()IICCI'DIl, I rec:ommend the following actions fur the franchising authorities. . Approve a $9.74I1'n.;mnm permitted rate for basic service (excluding franchise fees). but deny Cox any additioo to tbia tniximwn ~lI,jtted basic service rate based 00 the Form 1235. . Submit a Form 329 complaint to the FCC regarding the CPS tier. Tbis c:ornplalnt must come a frmcb;smg mthority. but ~ that at lout twO ~bsaibers have complained to the frlnchiSng IIJthority within certain time fi-amea after the operu!or has ebanied as rateS (_ daChmeDt); Cox reported. CPS rate iuaease in May. 1996. The FCC Ihould then resolve the proper a1Ioallioo of upgrade costa to the CPS tier. 7- 3 .. .----- ',- FU:i-27-1996 14: sa m.m_~_-J F'UB.-IC ~ ,.~ .~ll~ Please ~ lJle at 503-287-7273 if you have any qu~ons. SiDl=eIy, bkt c. ~ JlIY C. Sl!lith President, Public Knowkdge, In;, 7- 4 TOrR.. p, eI5 " <:J " <:J co ,., ~ " " ~ ~ W" ~3 o::l " -,," ~ "0 " co o ~ WOO = e 0 ~ -- u ~ " . <:J-- e - ~<:J "- J:t ~.Q 1 ca ~~ ~:< = Co) &~ . d .en. 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ATTACHMENT 8 ~~f?- ~ ~~~- ellY OF CHUlA VISTA OFFICE OF THE CITY CLERK TELEFAX COVER LETTER Telecopier No. (619) 585-5612 DATE: J!H!t7 I / TO: star News Leqal / Chrissy FAX NO: (619) 426-6346 FROM: Carla J. Griffin SUBJECT: c?~~. iJ~~ TOTAL NO. PAGES (including cover) : Jj PUBLICATION DATE: 11/-29/9 ? I I If all pages are not received, please call Carla @ (619) 691-5041. J; 276 FOURTH AVENUE. CHULA VISTA. CALIFORNIA 91910 . (619) 691.5041 ~ """'"""-,.. NOTICE OF PUBLIC HEARINGS BY THE CHULA VISTA CITY COUNCIL CHULA VISTA, CALIFORNIA NOTICE IS HEREBY GIVEN THAT THE CHULA VISTA CITY COUNCIL will hold .)Jfe public hearings to consider the following: .. A proposed agreement to grant a modified cable system franchise to CoxCom Inc., a Delaware corporation, dba Cox Communications San Diego Ordinance amending the franchise agreement with Cox Communications, adopting a franchise fee of 5%, extending the franchise an additional ten years through the year 2020, and making various other changes in terms and conditions. (First reading) Ordinance amending Section 5.52.010 of the Municipal Code to conform the fees assessable to cable franchisees and other video programming providers to those l' \ allowed by state and federal law and maklIlg other tech meal changes. (;:'4 ~v-;) The Ordinance modifying the franchise will only be considered on December 9, 1997, subject to the adoption of City Council Resolution 18818 on November 25, 1997: SETTING DECEMBER 9,1997 AS THE DATE OF A PUBLIC HEARING FOR CONSIDERATION OF A PROPOSED AGREEMENT TO GRANT A MODIFIED FRANCHISE AGREEMENT TO COX COMMUNICATIONS (COXCOM) INC., DBA COX COMMUNICATIONS SAN DIEGO WHEREAS, on April 16, 1964, the City Council adopted Ordinance No. 882 granting a franchise to Area Television Antenna, Inc. to operate a community antenna television system in the City of Chula Vista; and WHEREAS, said franchise was subsequently taken over by Cox Cable and substantially amended in 1984 and is currently scheduled to expire in January, 2009; and WHEREAS, staff has been renegottatlIlg certain franchise terms because there have been several changes in the cable industry and the San Diego market in the last 13 years; and WHEREAS, the major terms being renegotiated include: Franchise Fee; Term; Smart Community; Peg Grant, Cable Modems, Extension of Service, System and Services Review, Extension of Customer Services, Traffic Signal Access to Cable Facilities; Video Playback; Customer Selvice Standards and Obscenity. WHEREAS, in accordance with Section 1201 of the City Charter, the City Council shall pass a resolution declaring its intention to grant a franchise and fix the day, hour and place when and where any persons having any interest therein or any objection to the granting thereof may appear before the City Council and be heard thereon. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby set December 9, 1997 at 6:00 p.m. in the Council Chambers as the date, time and place for the public hearing for consideration of a proposed agreement to grant a modified franchise agreement to Cox Communications (CoxCom) Inc. subject to substantially the following modified terms and conditions: Increasing the franchise fee from 3''%, to 5%, extending the term by 10 years, providing the city with the hardware and software necessary to implement an additional phase of the Smart Community program, providing ten cable modems for city facilities (e.g. libraries, recreation centers), providing a PEG (Public, Educational, Governmental) grant of $100,000, specifying the distances, development densities or timing within which it is expected that service will be provided at no significant cost, requiring a system and services review in the year 2006, specifying the circumstances under which additional services available elsewhere in the County would be made available to Chula Vista subscribers, providing for good faith negotiation of future technology linkages or other issues of mutual interest, providing the city with playback equipment for the broadcast of City Council meetings, specifying minimum customer service standards and liquidated damages if they are not met, providing for subscriber notification of options to block audio/visual transmissions of unwanted programming, amending text regarding renegotiation intervals, amending termination provisions and disposition of' the franchise property in such case, amending text regarding rate regulation authority, providing that there shall be no offset or credit on the franchise fee, setting the limitations of the grant of franchise and right reserve to city, specifying the location of franchise properties and the standards for their construction or maintenance or relocation, amending insurance and liability provisions, amending text regarding inspection of property and records, providing for resolution of issues in conflict or held to be invalid, making representations and warranties as to the franchise, agreeing to provisions of force majeure and time being of the essence, and clarifying existing definitions and administrative provisions. .. Existing and proposed rates and charges for Cox Communications' Basic Service Tier and associated equipment and Cable Programming Selvices Tier, as submitted by Cox Communications to the City via Federal Communications Commission (FCC) Forms 1235, 1240 and 1205. Resolution (1) Approving various proposed cost-based decreases for installations and associated equipment; (2) Approving proposed cost-based increases in the Maximum Permitted Rates for the Basic Selvice Tier ($2.86); il;$l'ff (3) Approving proposed cost-based increases in the Maximum Permitted Rates for the Cable Programming Services Tier ($0.46); and (4) Approving proposed upgrade-related increases in the Maximum Permitted Rates for the Basic Service Tier ($1.57). These items regard maximum rates only. The effective date of any actual rate increases within said maximums would be subject to discretionalY action by Cox and thirty days notice to subscribers. Items 1-3 are per Forms 1205 and 1240 and have been found to be appropriately justified adjustments based on programming costs within the guidelines set by the FCC. Item 4 is based on an FCC decision rejecting Chula Vista's complaint regarding upgrade-related increases in CPS rates and decreasing Cox's requested upgrade-related Basic rate increase request from $1.59 to $1.57 to reflect adjustments to the accounting of income tax allowances. For further information or questions, please contact Gerald Young, Principal Management Assistant, at 585-5649. .. Considering retaining the Calendar Year 1998 Business License Tax rates at the current Calendar Year 1997 levels. For further information or questions, please contact Chelyl Fruchter, Assistant Director of Finance, at 691-5051. Any petitions to be submitted to the City Council must be received by the City Clerk's office no later than noon of the hearing date. If you wish to challenge the City's action on these matters 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 HEARINGS WILL BE HELD BY THE CITY COUNCIL on Tuesday, December 9, 1997, 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: November 25, 1997 COUNCIL AGENDA STATEMENT Item c2.0 Meeting Date 12/09/97 ITEM TITLE Public Hearing: Consideration of the proposed grant of a modified cable system franchise to Cox Communications (CoxCom) Inc. Ordinance Amending the franchise agreement with Cox Communications, adopting a maximum franchise fee of 5%, extending the franchise an additional ten years through the year 2020, and making various other changes in terms and conditions. (First reading) Ordinance Amending the Municipal Code to conform the fees assessable to cable franchisees and other video programming providers to those allowed by state and federal law. (First reading) SUBMITTED BY: Principal Management Assis~fl :oung~ REVIEWED BY: City Manager JG CO~VI (4/5ths Vote: Yes_ No_XJ One of the economic development sub-goals outlined by Council in the past year's priority setting workshops was the review of all city franchise agreements. This report presents a proposed amendment to the City's franchise with Cox Communications. Among the terms of this proposal, the City would be able to implement an additional phase of the Smart Community program as developed in a series of 1996 public workshops. Other recommendations include an increase in the franchise fee to a maximum of the industry standard level of 5% of gross revenues and a ten year extension to the term of the franchise. RECOMMENDATION: At the request of the applicant, staff recommends that Council continue the public hearing until the meeting of December 16, 1997. :20 ~ / COUNCIL AGENDA STATEMENT Item )--1 Meeting Date 12/9/97 ITEM TITLE: Public Hearing on Assessment District Number 93-01 for Alley Improvements East of Second Avenue and South of"J" Street SUBMITTED BY: Director of Public Works City Manager ~ (4/5ths Vote: Yes _ NoX) REVIEWED BY: Staffrecommends the public hearing be continued to the meeting of 1/6/98. h: \home\engineer\agenda\93 -0 1. fp ;2)--/ COUNCIL AGENDA STATEMENT ITEM TiTlE: 19'9'J/tJ RESOLUTION Amending the FY 1997-98 Budget to include 1.00 Full- time Equivalent (FTE) Police Agent Position and Vehicle; Accepting and Appropriating Unanticipated Grant Revenues in the Amount of $155,804 from High Intensity Drug Trafficking Area (HIDT A) Grant Funds. Item :2. :4. Meeting Date 12/09/97 REVIEWED BY: Chief of Polic~ ~ "'S~~\,~ City Manager -J 4 ~ -7 (4/5ths Vote: YeslL No SUBMITTED BY: The Chula Vista Police Department has two agents working with the United States Custom Service (USCS), one agent at Operation Alliance, the other agent at the Air/Marine Narcotics Interdiction Group. Both positions are funded through High Intensity Drug Trafficking Area (HIDT A) grants. The Chula Vista Police Department is now seeking to expand and enhance its investigative efforts by participating in another HIDT A position lead by the FBI investigating "narcotic traffickers". RECOMMENDATION: Approve one agent position for the "Narcotic Traffickers' Joint Initiative". Accept the $155,804 in HIDT A grant funds and amend the FY 1997-98 budget to include 1.00 FTE police agent including salary and benefits and associated overtime, vehicle and cellular phone as well as maintenance costs associated with the equipment. Coordinate the allocation of up to $50,000 of overtime to other state and local agencies participating in the initiative BOARDS/COMMISSIONS RECOMMENDATION: Not applicable. DISCUSSION: This innovative and groundbreaking joint initiative titled "Narcotic Traffickers" was established by the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigations (FBI) in fiscal year 1996 to target the predominant multi-drug trafficking "core organizations" operating in Southern California. Although this initiative has been in existence for just over two years, it has proven to be highly effective. It is staffed by members from several federal and state agencies including the DEA, FBI, United States Customs Services (USCS), Bureau of Narcotics Enforcement (BNE) and others. The funding through High Intensity Drug Trafficking Area Grants is aimed at developing multi- jurisdictional, cooperative strategies to: a) gather intelligence on drug traffickers; b) investigate drug trafficking activities; c) arrest persons involved with illegal drug trafficking; and, d) to successfully prosecute those arrested. San Diego and Imperial Counties have been designated as High Intensity Drug Trafficking Areas, due to the volume of illegal narcotics entering the United States through the international border frontier. c2,;2- ) Page 2, Item _ Meeting Date 12/09/97 The HIDTA grant will pay for the cost of one full-time police agent position and benefits at $70,680, overtime in the amount of $11,063, the purchase of a vehicle, cellular phone, portable radio, other miscellaneous equipment and associated maintenance costs in the amount of $24,061. The Chula Vista Police Department will also coordinate the state and local agencies participation in the initiative including the authorization of up to $50,000 of overtime. Continued funding of this position and related expenses will be subject to federal budget deliberations. For the past several years the Chula Vista Police Department (CVPD) has enjoyed an exceptionally productive working relationship with all the aforementioned federal and state agencies. These agencies have been the department's counterparts in a variety of investigations, including money laundering, homicides, kidnapping and major drug cases. One goal of the Police Department is to help disrupt the illegal drug activities occurring along the southwest United States/Mexican border within the County of San Diego, giving primary attention to the cases involving the City of Chula Vista. Our participation has significantly increased arrests, narcotics and money seizures among large scale drug traffickers, including several who lived in Chula Vista. For example, an investigation involving the Chula Vista Police Department Narcotics Enforcement Team (NET). was aimed at dismantling an organization responsible for smuggling multi-ton quantities of marijuana into the United States. CVPD narcotics detectives played a lead role in this investigation that lasted nearly eight months and culminated with the indictments of twenty-five individuals. A majority of those indicted were one time Chula Vista residents. Another investigation led by a Chula Vista Police detective working within a HIDT A funded position led to the arrest and conviction of a major marijuana trafficker who lived in Chula Vista. In addition to the hundreds of pounds of marijuana seized from this violator, the CVPD HIDT A representative was able to seize approximately $200,000 in cash from illegal drug proceeds. These are just two examples of several similar successful investigations. Other benefits of our participation have included enhanced communication, cooperation, and intelligence networking with other local, state, and federal agencies. FISCAL IMPACT: Funding from HIDT A will offset the costs associated with having one additional Police agent. HIDTA will specifically reimburse the agent's salary, benefits, overtime, vehicle and cell phone purchase and associated maintenance costs for a total of $155,804. As a result, there is no fiscal impact to the General Fund. Continued participation in the program and funding of the position will be subject to federal budget deliberations. As such this position will be added as a temporary position subject to continued funding from HIDT A or other sources. Attachment: HIDT A Grant Budget cJ :J - .:L. RESOLUTION NO. ;f{5JYtJ RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA AMENDING THE FY 1997-98 BUDGET TO INCLUDE 1.00 FTE POLICE AGENT POSITION AND VEHICLE; ACCEPTING AND APPROPRIATING UNANTICIPATED GRANT REVENUES IN THE AMOUNT OF $155,804 FROM HIGH INTENSITY DRUG TRAFFICKING AREA (HIDTA) GRANT FUNDS WHEREAS, the Chula vista Police Department has two Agents working with the united states Custom service (USCS), one Agent at Operation Alliance, the other Agent at the Air/Marine Narcotics Interdiction Group; and WHEREAS, both positions are funded through High Intensity Drug Trafficking Area (HIDTA) grants; and WHEREAS, the Chula vista Police Department is now seeking to expand and enhance its investigative efforts by participating in another HIDTA position lead by the FBI investigating "Narcotic Traffickers". NOW, THEREFORE, BE IT RESOLVED the City Council of the city of Chula vista does hereby amend the FY 1997-98 budget to include 1.00 FTE Police Agent position and vehicle; accept and appropriate unanticipated grant revenues in the amount of $155,804 from High Intensity Drug Trafficking Area (HIDTA) Grant Funds. Presented by Approved as to form by Richard P. Emerson, Chief of Police ~~~ John M. Kaheny, City Attorney C:\rs\hidta.grt <--2,2/3 HIDTA GRANT BUDGET I Proposed Use I Account Number I Amount I Salary 100-1093-5101 $52,200 Retirement 100-1093-5141 12,315 Employee Benefit 100-1093-5142 5,126 Medicare, 1.45% 100-1093-5143 746 Overtime 100-1093-5103 11,063 Vehicle 100-1093-5565 15,000 Maintenance/Fuel 100-1093-5269 2,160 Phone, radio, etc. 100-1093-5568 6,901 Overtime from other agencies 100-1094-5103 50,000 TOTAL $155,511 ;<02-7 / December 4, 1997 FROM: The Honorable Mayor and City Council John D. Goss, City Mana~~ City council Meeting of-December 9, 1997 TO: SUBJECT: This will transmit the agenda and related materials for the regular city Council meeting of Tuesday, December 9, 1997. Comments regarding the Written Communications are as follows: 5a. This is a letter from the city Attorney stating that to the best of his knowledge from observance of actions taken in Closed Session on 11/25/97 and 12/2/97 in which the City Attorney participated, there were no actions taken which are required under the Brown Act to be reported. IT IS RECOMMENDED THAT THIS LETTER BE RECEIVED AND FILED. JDG:mab THE CITY OF IMPERIAL BEACH FAX (619) 429-9770 825 IMPERIAL BEACH BOULEVARD. IMPERIAL BEACH, CALIFORNIA 91932 November 26, 1997 Shirley Horton Mayor City of Chula Vista 276 Fourth Avenue Chula Vista, CA 91910 Dear Mayor Horton: Per the request of Mayor Pro Tern Donn Hall, enclosed please find information pertaining to the San Diego National Wildlife Refuge. If you have any questions, please don't hesitate to contact me at 423-8301. Sincerely, CI Y OF IMPERIAL BEACH Linda A. Troyan, CMC City Clerk enclosure cc: Donn Hall,Mayor Pro Tern LAT/esb dr-a- - ) Otay-Sweetwater Unit. Vernal Pools Stewardship Project. and Proposed South San Diego Bay Unit. San Diego National Wildlife Refuge .. vERNAL POOLS S'1'i:WARDSHII> I>ROJ(CT ~ , III S(I'I'I V."C~M. o 12 KW R"'N~ , ., . / ,,--, I..ak. j~'''''1q. '"'" ',~) ... 0, ;V-3"\ ~ '-, .~~ SA~ DIEGO ~ N^ TIO....^l Pacific fOREST Ocean - PlO'~POS(D SOUH04 s..'" :)lEGO en ...;r-;IT ""I)(ICO BLJll'S OUY N..TION....1. LAND AND W1LDllrr ......N...atwENT ARC... .----- .l Yo.- ~ d-- ; South San Diego Bay Planning Area. San Diego National Wildlife Refuge \\ \CIIy Boundary I.ln..- \, \" \, \ \ \' " \ \ \' , ,\ \ \' ,'. \ 1\' i\ .\ \\~gl\ ~\i~\ ! \ \ \ South San \ \ \ 'Z. ~ W \.,) o Cl L:;: - \..) ~ \ \ , \ 1.'_5. ~0'0'01 Radio Stction @ \ \ \ Palm "". ;; !Ii , . Imperial Beach ~ I '" , , ~ Caronoljo Av. I I , o 02;J~ - 3 (----. I / . , '7"" \ I '1', '\ , 'l, '" ~ ~'\ \ ~., AREA ENI.ARGEG ~ o 2000 4.000 'eet , t--- South Son DieQo Boy PlonninQ Area ~S- ~"""ILDUF':E SERVICE ~,..." , .. , ' ....... ~<~. .-...;;:,. ~_.' QUESTIONS & ANSWERS Proposed South San Diego Bay Unit San Diego National Wildlife Refuge September 1997 Why does the U.S. Fish and Wildlife Service want to establish a refuge in South San Diego Bay? In ille midst of one of the nation's largest urban areas, Souill San Diego Bay se:-ves as a vital link in the Pacific Flyway for many species of migratory birds. South San Diego Bay is an irnponant v"irnering area for waterfowL such as surf scoter, scaup, brant, and bufflehead. and for shorebirds, such as northe:u phalarope and red knot. It is also an imponant breeding ground for seabirds, including black skimmer and several species of terns. South Bay provides habitat for se';e:-al species protected under the Federal Endange:-ed Species Act, including the Califomia least tern and western snowy plover. As San Diego Bay has become more urbanized, ille remaining South Bay habi;alS have become inGeasingly imponant for \vildlue. Much of the area's best remaining mudfla:s. salt marshes, and eelgrass beds are found in the South Bay. The salt ponds and surrounding silallow waters are im.ponant habitats for seabirds and shorebirds. For example, a 1994 study recorded more than ha.i.f a million birds using the salt ponds alone in a single year. Establishing the South San Diego Bay Unit of the San Diego National Wildlife Refuge would provide the Fish and Wildlife Service with ille opportuniry to conserve and manage South Bay's variery of habitats and \'iildlife species for the benefit of present and future generations, in cooperation with the U.S. :-iavy, State of California, local jurisdictions, and non-governmental orgarnzanons. What effect does designation of a national wildlife refuge boundary have on the land within and nearby? No new or additional zoning or land-use regulations would be created by the Se;-vice vv1thin the approved Refuge acquisition boundary for the proposed Souill San Diego Bay Dnit. Land-use designations and zoning would remain the responsibiliry of local jurisdictions. Development of private land would continue to be subject to the land-use regulations of the local jurisdictions. The identification of an approved Refuge boundary would not affect the ability of private landowners and local jurisdictions to implement adopted land-use plans, or to continue existing projects. The local jurisdictions would be under no requirement to amend their land-use plans to co:uorm with the approved Refuge boundary. ;<Ya-Y ~ /~J/77 . F_ --. The Fish and Wildlife Se;-;ice works on a willing participant basis. Landowners would be under no obligation to sell their land. or interests therein, to the Service. The approved Refuge bourldary would give the Se;-;ice the authority to acquire propenies from willing sellers. or to esublish cooperative ag,eements with other agencies. As lands are acquired by-the Service, Refuge lands would be managed pursuant to the National Wildlife Refuge Syscem Administration Act. This .-\ct provides the guidelines and directives to administer and manage nc.tional \vildlife refuges. This Act does not provide the Service with any authority to regulate activities beyond the bouI:dary of the Refuge. However, the Service and other Federal agencies (such as the U.S. .tumy Corps of Engineers), through a variery of other existing laws and regulations (such as the Clean \Vater Act and Endangered Species Act), may continue to review and comment on proposei development projects that may impact endangered and threatened species and wetlands in San Diego Bay. How would the Service manage lands under the National Wildlife Refuge System? On national wildlife :efuges, management activities generally include monitoring the status and reco';e:y of endangered, Greatened, and candidate species: controlling nonnative species; restoring and enhancing :::atiye habitats; protecting migratory birds and their habitats; and proYiding \vildlife-depe::cent recreational opporrunities. Specific activities for widife management and public use would be carefully designed for the proposed South San Diego Bay enit during the comprehensive management planning process. Biological data, public input, and budget and staffIng constraints would be conside:ed in the development of the comprehensive management plan. This plan would also access "va issues raised in the Refuge proposal: I) public view points, and 2) effects on boaters from protecting migratory waterio\vl and seabirds from disturbance in fall and winter, Management DroDosals to deal with both issues would be analvzed in the .... ~... - comprehensive management plan. The Service is introducing both issues for public discussion now in anticipation of the refuge management planning process. What boundary alternatives is the Service considering? The Service is considering four boundary alternatives: Alternative A. Alternative A would include approximately 4,994 acres of public and private land within the proposed South San Diego Bay Unit boundary (see Map). Alternative B. (Preferred Alternative) Alternative B would be very similar to A, but would exclude three areas on the perimeter of the South Bay: Silver Strand State Beach. Pond 20, and Area 2. Alternative B would include approximately 4,772 acres of public and private land within the proposed South San Diego Bay Unit (see Map). Alternative B would coyer about 96 percent of Alternative A. d- i/~ ~ 5 Alternative C. Alternative C is the preferred altern:llive from the 1978 environmental assessment and Finding of No Significant Impact. This boundary encompasses the salt ponds, including Pond 20, Area 2, and part of the lvfKEG parcel. The only parts of Emory Cove that are included are those south of Emory Channel. Navy land is not included. .Ajtemative C would include 2,203 acres of public and private land within the proposed South San Diego Bay Unit (see Map). The area proposed for protection is approximately 44 percent of Aiternative A. Alternative D. (No Action) Under the no action alternative, the Service would not acquire, manage or protect any land under the National Wildlife Refuge System in the Somh San Diego Bay. Existing levels of protection would be expected to continue under the no action alternative. What is the status of the proposal, and how does the proposal process work? The Service is preparing to make a formal refuge proposal to the public in the fall. This will be done as part of compliance with the National Environmental Policy Act (NEPA). The Service expects to release a draft land protection plan (LPP) and environmental assessment (EA) in October for a 30-day public review. During the review period, the Service ""ill host one or more open houses to give the public an opportunity to discuss the project with Sef\ice representatives and to submit written co=ents. At the end of the comment period, all co=ents received will be compiled, read, and considered in the development of the final LPP and EA. On the basis of the [mal EA.. the Re!!ional Director for Re!!ion I, U.S. Fish and Wildlife Smice, will decide - - whether to the Service should establish the proposed South San Diego Bay Unit, and if so, which alternative best fulfills the purposes for this Refuge. The public will be advised of our decision. cJy~~~ Table 1. Acres of habitat within the proposed South San Diego Bay Unit. ~: L _.' _,,~ ~_ " ,."'.,~:.....->.;..:-,_.;;.- 1_.:.,':':.;.,","-,:;:,:.:.... .'~~- ".' - - ..;> ~ Stndy "~AI{erriatJv'e~, Alternitive--€. rAIteriiati~ri oAlternative.? -Area ~~ ';:d,~~~~'.,~~ ::1~;;;~'"~~~ i"tf~~.~~ ~i;l.~~cc~:;:.~ ~... .. ',"_;~'~::-:'C,~' -..... _~:.:-_ =-..~...-_ . _ ,--,',.-- ~~-:::-:'/E . "''''..,.........'':. -. Submerged land 1,721 1,721 1,721 380 0 Eelgrass 691 691 691 50 0 Mud flat/intertidal 492 492 492 ml 0 Salt marsh" . 57 57 57 54\ 0 " . " : Salt Pond "" . 1,175 1,175 1,068 1,175 0 Beaches,:d"unes, . . 696 696 589 89 0 and cTe:lted land: ~ Riparian: " 8 8 I 8 0 J Fallow 154 154 146 7' 0 _J AgriculturalIand Total 4,994 4,994 4,772 2,203 I 0 . Does not include acre:1ge along dikes in salt ponds. ;2tjOc-7 BOUNDARY ALTERNAT ES, PROPOSED SOUTH SAt liEGO BAY UNIT SAN DIEGO NATIONAL WILDLIFE REFUGE Alternative A ,..' \ N "'J ~ 'i'\ (i o (""l rn J> Z 4.994 Acres: Alternative C .) - ~ \ " ~) , ~ ~ N \ ~ 'i'\ (i o (""l rn J> Z \l 'l ~ ',..(. .,.. \'..... "" ~ , =E,?~~L -, II \ \ Si\L7?O:'>"DS 2,203 Acres Alternative B - Preferred Alternative l \ ; t ~ N "'J ~ 'i'\ (i o (""l rn ~ ~ 4.722 Acres 1 Silver Strand State Beach 2 Area Two 3 MKEG / Fenton Parcel 4 Pond 20 o 2 3 -........... - -- Miles u.s. FISH &. 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" ~ ~ --" ;; f :-- Z t'~ ~ ~ " .:: '" ;; .....::: '" '" co ~ '" " .7: ....::. f ;; f /: f ~ :-- o /: ; = " ~ ~ " ~ = -: =.- -- ~ = = f " z t' ~ ~ f f '" J f f :::. /. f - f f f .:= ~ "- ~ f f ~: t- ~ /. ~ ~ ~ ~ f ,r. f -= -; '" = f f = f - -= " " :::: f ~ ~ ~~ = ~ : " " " ~ = " ~ --" " '" f f ; '" ~ ; ~ " :r. J: f f = " = -" ~ ~ " " = '" " .) /. LA-J--'- TO: Honorable Mayor and Council I FROM: Barry Johnson City Manager STAFF REPORT CITY OF IMPERIAL BEACH DATE: September 3, 1997 SUBJECT: San Diego National Wildlife Refuge BACKGROUND: Mayor Pro Tern Donn Hall brought forward a report raising concern over the potential impact of the proposed San Diego National Wildlife Refuge may have upon the City of Imperial Beach. There was a desire to sponsor a mini-summit with other interested parties to discuss the issue. Instead, staff was directed to work with Mayor Pro Tern Hall to develop a more detailed game plan. Staff has met with Mayor Pro Tern Hall and a strategy has been prepared. DISCUSSION: An Environmental Assessment has yet to be completed for the South Bay Unit portion of the San Diego National Wildlife Refuge. This document, which will drive any future activity, is scheduled for completion later this month. From this point, the overall gameplan proposed is as follows: I. Prepare a letter to interested South Bay cities advising of concern over project and desire to jointly monitor program to assure that local jurisdiction input and discretion is maximized. Include a description of our strategic process intended to assure coordination. 2. Await completion of Environmental Assessment (EA). 3. Allow time for staff to review EA and identify common concerns and issues with other agencies' staff. 4. Allow each agency's staff to bring forward report of issues and concerns to their respective governing bodies. Receive comments and appoint a Council representative for a joint meeting of concerned entities, if they're interested. 5. Request U.S. Fish and Wildlife to present workshop with group. Have group formulate common concerns and issues for U.S. Fish & Wildlife. 6. Request U.S. Fish and Wildlife to schedule multiple public input workshops in each city. ACTION: 9/3/97 Motion to send a letter to fish & wildlife inviting them to make a presentation to include: a summary oftbe plan, the Recreational, economical and environmental impacts of the plan, and how Imperial Beach and other cities may be impacted. In the letter, express council's concern that the City does not want the presentation put DITto the extent we are unable to respond to legitimate concerns that the plan proposes - Council wants to receive:;r'efing of the above in a timely manner. Jd Motion carried unanimously. 1 LI a- '-:l... 0' -I' ITEM # Page 2 Date: September 3, 1997 Subject: San Diego National Wildlife Refuge STAFF REPORT CITY OF IMPERIAL BEACH FISCAL IMPACT: None directly related to this report. CITY MANAGER'S RECOMMENDATION: Staff recommends City Council approach strategy as described relating to San Diego Wildlife Refuge. Prepared by: /l~ ,J2/~~~ ITEM #-'!j TRANSMfITAL TO: Honorable Mayor and City Council STAFF REPORT FROM: Barry Johnson, City Manager CITY OF IMPERIAL BEACH DATE: July 16, 1997 ORIGINATING DEPr: Barry Johnson, City Manager SUBJECT: Wildlife Habitat Protection Plan mSc.nSSTON: Mayor Pro Tern Hall to update Council concerning the concept plan for San Diego National Wildlife Refuge. FTSC'AL IMPAC'T: None. nRPA RTMRNT RRC'OMMRNnA TTON: Receive update of the plan from Mayor Pro Tern HaJJ. C'ITY MANAGRR'S RRC.OMMF.NnATTON: Receive update of the plan from Mayor Pro Tern HaJJ. /~. f t~ ,,/ \ , I /"----1-------1 Barry Johnson, / Manager ACTI~N: 8/ /97 Accepted staff recommendation (directed staff to meet w.th Mayor Pro Tern Hall and formulate another approach; to I ok at the status of the environmental assessment, the proces' a d bring back more information, perhaps at a study session.) M6tion carried unanimously. .!----1 .21/a- - 2/r ITEM # d~ G:\CT1'-CNCL.RPT\1UOHNSON\REFUGEPL.WPD lernal pools, estuarine system, eelgrass beds. mud flats, saltmarsh. salt ponds. coastal sage scrub, southern maritime chaparral, stipa and mlley needlegrass grasslands, freshwater marsh, southern interior cypress forest, native grassland, riparian scrub, riparian woodlands, maritime succulent scrub vernal pools, estuarine system. eelgrass beds, mud flats, saltmarsh, salt ponds, coastal sage scrub. sOl/thern maritime chaparral, stipa and mlley needlegrass grasslands, freshwater marsh, southern interior cypress forest. native grassland, I'ernal pools. estuarine s\'Stem, eelgrass beds. mud flats. saltmarsh, salt ponds. coastal sage scrub. sOl/thern maritime chaparral, stipa and valleI' Conceptual Management Plan San Diego National Wildlife Refuge San Diego County, California ~ / ~ /' ~ - - - ~ / ;_~=:-:~~_~~-~?:~_:~~~~~':=- ~-~__: --- -fV;r-~ /1 o .: .= ~-~.::~:~~~~'-~'}~~~:.-::'-::~~~~~~--:-:~::~ ~ ...........:...-.-:---- -... . ~.......--~,~_... ---~-- Y-'- .',(" '.' ..:.--:: ~ . '> -~ - .~~ .--+",... -ftv ~h ~~ .A~" "'- l J -'-, .,.... ~--,,"";. - -/ -":..' ..:; /_ .vN" .r' ". -.~ ,.. .......\..-'....._ ~ ~~l ~ .l~ / /'v 'i4J't..-',A.... "'wc, ~~ "\ A~ ,.u" ~.- ~"""--\....o-"Tr'" ,1M- ~ tit ,,' . . '~"- .,.c. . ..... C'<', .., .~.. ... .~-~r;~:J~~~~:::~'C~~~a." =-',c~son ....... - ~,..- United States Department of the Interior Fish and Wildlife Service 02 ~l- -:2 / ),m HI:":ild \.f"!/fI!Il!T1 Table of Contents Page Introduction................................................................................... 1 National Wildlife Refuge System....... ..... ...... ...... ...... ........... ..............2 Refuge Administration.....................................................................8 Key Areas of Management Focus.. ........ .......... ....... ........... ....... ........10 Public Use and Wildlife-Dependent Recreational Activities................14 Rights-of-Ways and Easements......................................................21 Law Enforcement.......................................................................... 21 Facilities Development and Management. ......... ..... .............. ...... .... 22 Fire Management ........................................................................ 22 Interagency and Public Coordination ....... ......... ........ ....... ............. .23 Figures Figure 1. Otay-Sweetwater Unit. Vernal Pools Stewardship Project. and Proposed South San Diego Bay Unit............................3 Figure 2. Approved Refuge Boundary for the Otay-Sweetwater Unit....-1 Figure 3. Approved Boundary for the Vernal Pools Stewardship Project........................................................... 5 Figure 4. South San Diego Bay PlanningArea...................................6 Figure 5. Conceptual Wildlife-Dependent Recreational Activities.......19 Tables Table 1. Interim Compatibility Determinations and Interim Uses for the Otay-Sweetwater Unit..............................................16 Table 2. Interim Compatibility Determinations and Interim Uses for the Vernal Pools Unit.....................................................17 ,;U! Ct.- -;2 [5 Introduction This Conceptual Management Plan provides a general description of the management approaches being considered for the San Diego National Wildlife Refuge (Refuge). The San Diego Refuge includes the Otay- Sweetwater Unit. Vernal Pools Stewardship Project. and proposed South San Diego Bay Unit (see figure I), The Conceptual Management Plan presents a broad overview of the U.S. Fish and Wildlife Service's (Service) proposed management approaches to wildlife and habitats. public uses and wildlife-dependent recreational activities. wildfire suppression and prescribed burning. rights-of-ways and easements. law enforcement. facilities. interagency coordination 'With the Multiple Species Conservation Program preserve. and public outreach within the San Diego National Wildlife Refuge. The Service developed this Con- ceptual Management Plan during the planning process to provide land- owners. government agencies. and the interested public with a general understanding of the anticipated management approaches for the San Diego Refuge. The proposed management actions will only apply to lands that are included within the National Wildlife Refuge System. lndhidual er.vironmental assessments and land protection plans have been prepared by the Service that analyze the environmental effects of establishing the Otay-Sweetwater Unit and Vernal Pools Stewardship Project of the San Diego Refuge (see figures 2 and 3). The emironmental assessment and land protection plan for the proposed South San Diego Bay unit is still in preparation (see figure 4). The Conceptual Management Plan describes the general management needs for the approved Refuge boundaries for the Otay-Sweetwater Unit and Vernal Pools Stewardship Project of the San Diego Refuge as described in the individual environmental assessments and the planning area for the proposed South San Diego Bay Unit. The Service would prepare a Comprehensive Management Plan and step-down Refuge management plans as lands are acquired. The Comprehensive Management Plan would detail Refuge operations and would specifY the types and locations of public use activities; monitoring and recovery of endangered, threatened, and rare species: fire management: and other operational needs. Step- down Refuge management plans would address such programs as fire management. hunting. and other public uses. The Comprehensive Management Plan and step-down Refuge management plans would be developed with public input in accordance with the National Environmental Policy Act. Rancho San Diego c2 '-/0- -;z 9 National Wildlife Refuge System The National Wildlife Refuge System is a national network of protected lands and waters dedicated for wildlife. The first national wildlife refuge was established in 1903 and the System now numbers more than 508 refuges. with at least one refuge in every state. California has 37 national wildlife refuges covering more than 400.000 acres. Mission of the National Wildlife Refuge System The mission of the National Wildlife Refuge System is to preserve a national network of lands and waters for the conservation and management of fish. wildlife. and plant resources of the United States for the benefit of present and future generations. Guiding Principles of the National Wildlife Refuge System a. Habitat. Fish and wildlife will not prosper without high-quality habitat. and without fish and wildlife. traditional uses of refuges cannot be sustained. The Refuge System will continue to conserve and enhance the quality and diversity of fish and wildlife habitat within refuges. h. Public Use. The Refuge System provides important opportunities for compatible wildlife-dependent recreational activities involving hunting. fishing. wildlife observation and photography. and environmental education and interpretation. c. Partnerships. America's sportsmen and women were the first partners who insisted on protecting valuable wildlife habitat within wildlife refuges. Conservation partnerships with other Federal agencies. State agencies. Tribes. organizations. industry. and the general public can make significant contributions to the growth and management of the Refuge System. d. Public Involvement. The public should be given a full and open opportunity to participate in decisions regarding acquisition and management of our National Wildlife Refuges. Figure 1 Otay-Sweetwater Unit. Vernal Pools Stewardship Project. and Proposed South San Diego Bay Unit. San Diego National Wildlife Refuge .. VERNAL POOLS STEwARDSHIP PROJECT /----- I \-~ ( 'C<- \ ~ l ." '" ' !AREA . ~ ) : (NLARGED:=-. ' PROPOSED SOUTH SAN DIECO BAY UNIT ~ ~ Sa" Vi"c~"tp /I Rm~~ .: lC.W ,", \ ) ;/ \~ \~7 ~N V UJ/(p Jennings "" ~ DIEGO NA TIONAL Pacific Ocean FOREST ----- Mexico Bltr.ll'S OUY NATIONAL LAND AND WILOUrE lr.lANAGEIr.rIENT AREA ~/~ -3 / figure 2 Approved Refuge Boundary for the Otay-Sweetwater Unit. San Diego National Wildlife Refuge 0 Otav Sweetwater Unit 0 Rancho San Diego 0 Vernal Pools Unit > 0 Streams - - 0 Major Roads . f>~ oS. .;,.+'" ROw! {\",<:- ......~ ~~r ~,~;)'" "," ". Yo, R"" > J ;-oe:he'~ ~ ~ o , -J!!JZ!J'_-. 2 3 4 . . ""~ ~, - -- u/-..~-;.- Me GiDly Sycuan __ Peak Miles () lr,g~;'~Q4 '" .,- > /, ~''''' ,- ...; //, \P"""~~ :f-1",' ,,:-1- 0,- Or~, I -'4 ~- ""-f'" '" ..of o. c:i'..... T~leg';l.Q~ l . O~y !\1ountain Figure 2 Otay-Sweetwater Unit Approved Refuge Boundary uu.y_K~ 2J!d-32 Figure 3 Approved Boundary for the Vernal Pools Stewardship Project. San Diego National Wildlife Refuge Del Mar Me s a {fJJi/I? PACIFIC >'II Lopez Ridge - c?MIR~~--; - - - --l _ RfSfRVOIR ' I "- ~ SAN VINCENTE V RESERVOIR , , Nav~ AirSlation/ ~crine Corps Air Station , ;;s- Miramor LAKE JfNNINGS SWffTWATE/R P RESERVOIR(~ OCEAN LOWER orA r ~ RESERVOIR (? 01 a 6 -IIIIIIII ' Me S......... S.,;n. UNITED ST AT_E~ _ - - - - Conyon _--- - - - - - MEXICO -~-- ----- ~ 0 . 8 12 K'" , , .. o 5 ~I V[RN.l.L POOL CO"'PLEXES 2Vo.,-53 Figure 4 South San Diego Bay Planning Area. San Diego National Wildlife Refuge \ \ City Boundory Lln..- \ \ Z <t w (.) o Cl - L.... - Cl 0: U.$. Naval ROdio StCltion @ ~ , , ,,\ \ \' ,,\ \ \' ,,\ \ \ ' ,,\ \ \' ,,\ ~~ \ \ i South San \ \ \ Moin St Palm AVfI Palm Ave v; v; , " Imperial Beach 5 I II : , Coronado Ave I -, , 02 fc~ --.3 i D South Son Diego Bay Planning Area Goals of the National Wildlife Refuge System a. To preserve. restore. and enhance in their natural ecosystems (when practicable) all species of animals and plants that are endangered or threatened with becoming endangered. b. To perpetuate the migratory bird resource. c. To preserve a natural diversity and abundance of fauna and flora on refuge lands. d. To provide an understanding and appreciation of fish and wildlife ecology and the human's role in the environment; and to provide refuge visitors with high quality. safe. wholesome. and enjoyable recreational experiences oriented toward wildlife to the extent these activities are compatible with the purposes for which the refuge was established. 1'; .- ; ~fji ia-1i Iw;,". ,- 11,.11 l(enlSaIMc," _s:-:,'s The San Diego National Wildlife Refuge. including the Otay- Sweetwater. Vernal Pools. and South San Diego Bay units. will be managed as part of the National Wildlife Refuge System in accordance with the National Wildlife Refuge System Administration Act of 1966. Refuge Recreation Act of 1962. Executive Order 12996 (Management and General Public Use of the National Wildlife Refuge System), and other relevant legislation. executive orders. regulations. and policies. Purpose of the San Diego National Wildlife Refuge The purpose of the San Diego National Wildlife Refuge is to protect. manage. and restore wildlife habitats for federally listed endangered and threatened species and migratory birds and to maintain and enhance the biological diversity of native plants and animals. Wigrawry I"/s/roTS. DrJV.-jrchers ell/&..--- JS' -I // E,'/. ...'-' - ~~' - ~~-~ . , ~~ ~4---C_~<.;..'~ -. _'~-.:: ,....-- . -').:"1\.- The following goals of the San Diego/" .; Refuge reflect the core mission of the U.S. '~~~f" Fish and Wildlife Service to protect "I ~ " wildlife resources of national importance ,(~, . , ~,','" while providing compatible . "';;. opportunities for the public to '""Io,","~' '.l." appreciate and enjoy the natural 1m" "'," heritage of the region. Goals of the San Diego National Wildlife Refuge a. Endangered Species/Essential Habitats: To protect, restore, and enhance native habitats to -,\ aid in the recovery of federally listed endangered 'X and threatened species and to prevent the listing of \, . . . Ker-daIMc"s JS;;;\/S additIonal speCies. b. Biological Diversity: To protect, manage, and restore the rare coastal sage scrub. chaparral. riparian woodland, vernal pools. coastal dune. and wetland habitats representative of the biological diversity of the southwestern San Diego region. c. Cooperative Programs: To create partnerships and provide leader- ship in coordinating the land management activities of Federal. Tribal. State. and local governments and agencies. and with academia. private conservation organizations, and citizens insupport of the Multiple Species Conservation Program preserve system. d. Migratory Birds: To provide breeding, migration. and wintering habitat for migratory birds. with emphasis on seabird and shorebird breeding habitat. and wintering waterfowl habitat. e. Public Use: To provide safe and high quality opportunities for compatible wildlife- dependent educational and recreational activities that foster public appreciation of the unique natural heritage of the San Diego region. Refuge Administration ~~ ..",,~ /- k,' ...;t "0. : J' " ./! i:.J; . ",-- 111'\ -. I / \ ' .J' Y/A~\i.i, \i1--:~~~'\;.~\ " ,~\; , ,"&~ o(enaa' '.Ie" ~ ~ S,'i.'S As lands are acquired by the Service from willing sellers. funding for the operations and maintenance of the new San Diego Refuge would be needed. Management funds would be needed for new staff. administrative support, program and facility development. and c2J!e.-- ~ 36 maintenance. In addition. operational funding for the new Refuge may also include funding for detailed planning to ensure that programs and facilities foster the purpose for which the Refuge was established and to involve the public in the Refuge management process. The development of San Diego Refuge staff. programs. and facilities would be phased in over time as the land base and management responsibilities expand. Refuge program and staff development are anticipated to take several years and would reflect the availability of funds appropriated by Congress to support the Refuge. Congressional funding for refuge operations and maintenance lags behind the establishment of a new refuge or addition of lands to existing refuges by several years. In the interim. the Service usually provides limited start-up funding from current appropriations by reducing the budgets of existing refuges elsewhere in the country or by incurring budget increases. However. start-up funds are not adequate to immediately develop facilities and programs at the new Refuge. During the 3- to 5-year start-up period. the Refuge may operate certain programs under an interim management plan. The goal of the interim management plan is to provide essential resource protection within the Refuge and to provide scaled-down opportunities for the public to enjoy their natural heritage. During this start-up phase. the Service would also involve the public in defining the long-term goals and objectives of the Refuge and in identifYing future programs and facilities through the development of a Comprehensive Management Plan. Because of the time lag between land acquisition and base funding for Refuge operations and maintenance. there may be a perception that the Service is more interested in acquiring land than implementing programs for wildlife stewardship and public use. However. the interim start-up period provides both the Service and public with an opportunity to ensure that the Refuge is developed with sound planning to conserve wildlife and to meet a community's and the nation's long-term expectation for quality programs. The budget for the San Diego Refuge would include funds for salaries. facilities. capital improvements. equipment and infrastructure maintenance. biological surveys. habitat restoration. fire management. and supplies. The Refuge staff would include administrative. biological. law enforcement, public use. environmental education. and maintenance positions. Whenever possible. the talents and skills of volunteers would be used for specific Refuge management projects. Staff positions would be incrementally added as lands are acquired and funds are available. Initial staffing for the San Diego Refuge lands at Rancho San Diego would include personnel with biological. law enforcement, and fire management skills. c2L/c.- - 37 Office. shop. storage facilities. visitor contact stations. and educational facilities would likelv be needed for the Vernal Pools and Otav- Sweetwater units. Existing buildings on acquired or leased properties may be used or new facilities may be constructed to meet this need. The proposed South San Diego Bay Cnit would be managed from additional office and work space at the existing Tijuana Slough National Wildlife Refuge located at Imperial Beach. Refuge field offices would continue to be supervised from the San Diego National Wildlife Refuge Complex office in Carlsbad. California. Key Areas of Management Focus The key areas of initial focus for the San Diego National Wildlife Refuge would be habitat and wildlife management. wildlife-dependent recreational activities. public uses beyond the lIelland ,'i.,iIM. Black-necked ",It scope of wildlife-dependent activities. rights-of- ways and easements. law enforcement. facilities development and management. fire management. and interagency coordination. In general. the management approach for the Otay- Sweetwater. Vernal Pools. and South San Diego Bay units would be to allow natural processes that benefit the conservation of wildlife to continue on Refuge lands to the extent that human life and private property are not jeopardized. Refuge management would also include active manipulation of habitats. such as conducting prescribed burns. controlling nonnative species. restoring wetlands. and providing wildlife-dependent visitor services. Habitat and Wildlife Management Native habitats and plant communities would generally be managed for the recovery of endangered. threatened. and rare species. Active modification and manipulation of intact native plant communities would be avoided as appropIiate. In native plant communities that have suffered some form of limited disturbance. management actions may involve eradicating nonnative plant species. replanting native plants. restoIing hydrological conditions. suppressing wildfires. and conducting prescIibed burns. On severely degraded sites. J. 'I c:'- - .sr OIJ\ \It' ~11 nllnl ~ Si"afl Er'C,",son intensive restoration projects involving heavy equipment. herbicide application. native plantings. and long-term monitoring may be required. Wildlife management would include monitoring the distribution and abundance patterns for selected endangered and threatened species. migratory birds. and other wildlife species: controlling nonnative animal species. such as the brown-headed cowbird: manipulating habitats to provide nesting and feeding areas: and continuing research on limiting factors for endangered and threatened species. Where native habitats abut urban areas. monitoring and controlling feral cats and dogs and fugitive ornamental plants on Refuge lands may be necessary. Livestock grazing on Refuge lands would be phased out unless determined to be needed as a management tool. The Service would continue to work with the Biological Resources Division of the U.S. Geological Survey. . $h.",.,,",," California Department of Fish and Game. and various universities on research on the biology of endangered. threatened. and rare species and their habitats. LI'll.11 Bdf's \in'iJ Native habitats would be managed for multiple wildlife species in an integrated fashion. For example. the endangered least Bell's vireo is characterized as a riparian woodlands species. However. adjoining chaparral habitats provide important foraging habitat for the least Bell's vireo. In this case. both riparian and upland habitats would be managed together to provide nesting and foraging habitats for the least Bell's vireo. Similar integrated habitat management strategies would be used for the complex of species using both coastal sage scrub and chaparral. Riparian habitats would be managed -_~,~ primarily for the recovery and restoration of the endangered least Bell's vireo. endangered southwestern willow flycatcher. endangered southwestern arroyo toad. and threatened California red-legged frog. - Nonnative plant species. such as tamarisk and arrundo cane. would be controlled in riparian woodlands and riparian scrub habitats. Integrated ;21/A -59 Riparian Woodland and Riparian Scrub Habitats i.r ;, '.; I Y ., .' ~\ c:"" , ',- . <........;1../. ..~ f \',/1: , :l<<' \-' ;" , ,'....' 0( '/ i.y ~ ~. \ , \ -,:~ ~:~'''~'' .~i~ \ '...._;~ \ , , ,,' '\ ~ ; '? - . Cu/ifornia gnalcatcha Kencal Moms USFWS J pest management. including mechanical and chemical methods. would be used to control nonnative plant species. To protect aquatic and riparian habitats. the Service would avoid diverting surface water or withdrawing groundwater within and adjacent to the ripartan zone. The distribution and abundance of the least Bell's vireo. southwestern willow flycatcher. and migratory songbirds would be monitored. The control of the brown-headed cowbird within the range of the least Bell"s vi.reo on Refuge lands would be a critical ongoing management goal. Coastal sage scrub habitats would be managed for the recoverv of the threatened coastal California gnatcatcher and other rare species such as the San Diego horned lizard and orange-throated whip tail lizard. In general. coastal sage scrub and chaparral habitats would not be actively P"".wl;''',,' manipulated. However. disturbed coastal sage scrub habitat and abandoned foot trails may be replanted with native species to accelerate the recovery of natural habitats. Monitoring threatened and rare species within coastal sage scrub would be an important management goal. In particular. the distribution and abundance of the coastal California gnatcatcher would be monitored. Wildfires in coastal sage scrub and chaparral would be suppressed by using existing fire roads and firebreaks wherever possible (see section on Fire Management). ,. . "'. _..,..~.... ~...' ".~ ...- ".:-'-' -- ~-t.:~'" ..;.. .. ~ .r...-e- ~ -. ~ ~.-.t" " ',' ~. ~~.. ., ., -. -ti. ..- .;. ...$j:...... .' .;1;:/0., .~~~ .~~ .~ f:~"'~ ._.,~1' r.-' ~W;"~ . ,...~!'_~,.~. c~.. .. ...,. <flii ,./!" .... . .... ..;'~' .... .~~.( Grassland Habitats Coastal Sage Scrub and Chaparral Habitats Native grasslands would be preserved and restored because of their relative scarcity. Depending on the site history. nonnative grasslands may be manipulated to restore native habitats. Site restoration may require mechanical and herbicide treatments prior to planting appropriate mixtures of native plant species. However. the need to maintain nonnative grasslands as raptor foraging habitat would be balanced with the goal to restore native plant communities. Wildfires and prescribed burns in grasslands would be managed by using existing fire roads. firebreaks. and wetlines. Wildfire suppression would use existing roads and fire breaks wherever possible (see section on Fire Management). -2 if Oc- - L/O Vernal Pool Habitats Management of vernal pool habitats would include fencing, boundary and interpretive signs. nonnative plant removal. and monitoring. Where feasible. vernal pools would be restored and the drainage basin revegetated with native plant cover to reduce sediment erosion. Freshwater Wetland Habitats \ "anal p(Jnl Open water habitats and much of the wetlands with emergent vegetation are on lands that would be managed under cooperative agreements among the Otay Water District. Sweetwater Authority. and the Service. Consistent with these cooperative agreements. emergent wetlands and open water would be managed as habitats for migratory waterfowl and other migratory birds. Tideland. Salt Marsh. Salt Pond. and Coastal Dune Habitats _...,.....,. . r-" .-. ~~;...,- ::.~:;-" California least {ern Tideland. salt marsh. salt pond. and coastal dune habitats are found 'Within the proposed South San Diego Bay Unit. Several potential habitat management activities are being considered. Salt marsh and salt pond habitats on Refuge lands may be restored by removing dikes and fill and South Bay Salt Pond" '" PhillIp Roulla,d enlarging culverts to improve tidal exchange. Water levels in salt ponds may be managed to provide shallow mudflat habitats for migratory shorebirds. Predator control for nesting shorebirds. such as the California least tern. would continue on Service lands. Seasonal closures of important waterbird areas in south San Diego Bay to certain boating activities may also be proposed in coordination with the San Diego Unified Port District and California State Lands Commission. Habitat restoration projects. such as replanting eelgrass beds. may be considered to improve the biological productivity of South San Diego Bay. ;?J! Ci- - Lj I Public Use and Wildlife-Dependent Recreational Activities As part of the National Wildlife Refuge System. the San Diego National Wildlife Refuge will provide opportunities for wildlife-dependent recreational uses that are compatible with the refuge purpose [Executive Order 12996). As an urban refuge. San Diego National Wildlife Refuge is poised to provide the people of San Diego and the nation with numerous opportunities to gain better appreciation and understanding of the region's unique wildlife heritage and to enjoy the refuge's open spaces. Unlike most lands managed by the U. S. Bureau of Land Management and the U.S. Forest Service. national wildlife refuges are not multiple-use lands. On national wildlife refuges wildlife purposes are always the primary land use. However. the Service promotes the wildlife-dependent recreational activities of hunting. fishing. wildlife observation and photography. interpretation. and environmental education whenever those uses are compatible with the purpose(s) of the refuge unit. The Service is committed to providing high-quality. safe. and accessible wildlife-dependent interpretation. recreation. and education opportunities at San Diego National Wildlife Refuge. Within the capabilities of allocated staff and budget. many compatible public use opportunities will be avallable. High quality wildlife-dependent recreational opportunities rely on healthy habitats and healthy populations of endangered species. migratory birds. and other native species. Therefore. some constraints on public use and recreation are necessary. Unlimited public access and use of Refuge lands could easily degrade the resources that make a visit to a national wildlife refuge so special. . \1 I ~ ~ I f I National laws and policies provide the guidance and planning framework to insure that Americans can enjoy their National Wildlife Refuge System while protecting these special lands from incompatible ' or harmful human activities. Guidance is derived from the National Wildlife Refuge System Administration Act. the Refuge Recreation Act. and Executive Order 12996. Key issues of compatibility. availability of funds and staff. and prohibited activities are discussed in this Conceptual Management Plan. cJ, J/ C't- - zJ;L Most lands within the Otay-Sweetwater Unit and some lands ,-,<ithin the Vernal Pools Unit are currently privately owned and not open for general public use. Trespass on private lands is a source of concern for landowners because of increased liability. damage to property. and vandalism. Public use activities would be limited to Sen.ice lands only. All public entry and use of Refuge lands are at the discretion of the Refuge Manager. All uses must be compatible '-'ith the purposes of the affected refuge unit. If the proposed use is found to be compatible. the use may be authorized by the Refuge Manager if management funds and staff are available and other laws. regulations. and policies are satisfied. Before activities or uses are allowed on a national '-'ildlife refuge. Federal law requires that they be formally determined to be ". . . compatible '-'ith the major purposes for which such areas were established. . ." (National Wildlife Refuge System Administration Act of 1966). A compatible use is "An allowed use that '-'ill not materially interfere '-'ith or detract from the purposes for which the unit was established" (Fish and Wildlife Service Manual. 602 FW 1.4.A). For recreational uses to be allowed. a Refuge Manager must further determine that the uses are practicable. '-'ill not interfere '-'ith the primary purposes for which the areas were established. and funds are available for the development. operation. and maintenance of these permitted forms of recreation (Refuge Recreation Act of 1962). The Service is required to identifY. prior to acquisition of new refuges or additions to existing refuges. those existing '-'ildlife-dependent recre- ational activities that would be allowed to continue (Executive Order 12996 Management and General Public Use of the National Wildlife Refuge System). These activities include hunting. fishing. '-'ildlife photography. '-'ildlife observation. environmental education. and environmental interpretation. The Otay-Sweetwater Unit supports a range of '-'ildlife-dependent recreational activities such as upland game bird and deer hunting. freshwater fishing on public reservoirs and streams. wildlife photography and observation. and environmental education and interpretation (see table I). Within the Vernal Pools Unit. the inventory of '-'ildlife-dependent recreational activities includes upland game bird hunting. wildlife photography. ~dlife observation. environmental education. and interpretation (see table 2). Wildlife- dependent recreational activities that occur '-'ithin the proposed South San Diego Unit include fishing. '-'ildlife photography. wildlife obser- vation. environmental education. and environmental interpretation. ~J/4-- -1/3 Upon completion of the San Diego Refuge planning process and prior to acquiring any lands from willing sellers. the Service \\ill complete interim preacquisition compatibility determinations for \\'ildlife- dependent recreational activities that could be allowed to continue until comprehensive Refuge planning was completed, The interim compatibility determinations for wildlife-dependent recreational activities temporarily bridge the time period between the acquisition of land for a new wildlife refuge and official opening of Refuge lands to public use. The continuation of wildlife-dependent recreational activities would also require the determination of the Service's authority to regulate the use. availability of funds and staff to oversee the activity. and an analysis of any environmental impacts pursuant to the National Environmental Policy Act. Table I. Interim Compatibility Determinations and Interim Uses for the Otay-Sweetwater Unit of the San Diego National Wildlife Refuge. Wildlife-Dependent Existing Compatible for Funds and Staff Interim Use Recreational Activity Activity Interim Period Available to Allowed (II Manage (I) Environmental Yes Yes Yes Yes Education Environmental Yes Yes Yes Yes Interpretation Wildlife Observation Yes Yes Yes Yes Wildlife Photography Yes Yes Yes Yes Hunting Yes Yes Yes Yes Fishing Yes Yes No Yes") 11) During the interim period. as additional funds and staff are allocated to the San Diego National Wildlife Refuge. compatible wildlife- dependent recreational opportunities will be opened to the public on Service lands. 121 Existing fishing activity on Otay Reservoir will continue to be managed by the respective jurisdictions. Based on the compatibility determinations. wildlife- dependent recreational activities (environmental education. environmental interpretation. wildlife observation. wildlife photography. hunting. and fishing) within the Otay- Sweetwater Unit would be compatible with the purpose of the San Diego National , Wildlife Refuge. The Service anticipates having the II funds and staff to manage wildlife-dependent uses . on new land acquisitions. .:2 ~c..-- ~~ " . '\':~ , . _.~,~, ,.\ ,~.' '-0-: ~'l J,-!. .::J"'~' " ,', ,,; ,....~~,~ .'. \,: ,_...,Jf:;::;f.lO"'.; . .:' .~ -~~~''-'" . .,' .Ii.' ~"'., -- -.' '~"'->:i;J, " ' , '-' ~'H" ~~.,........,t''':,~_. In the case of Rancho San Diego and other newly acquired Refuge lands, the Service will be developing an interim plan that will address wildlife- dependent recreational activities and other public uses. Certain uses at Rancho San Diego. such as bird- watching and nature hikes. have been allowed by the Refuge Manager based on availability of Service staff and funds, The Service is also working with the County of San Diego on hiking and equestrian trails and an equestrian facility at Rancho San Diego. Table 2. Interim Compatibility Determinations and Interim Uses for the Vernal Pools Unit of the San Diego National Wildlife Refuge, Wildlife-Dependent Existing Compatible for Funds and Staff Interim Use Recreational Activity Activity Interim Period A vailable to Allowed (I) Manage (() Environmental Yes Yes Yes Yes Education Environmental Yes Yes Yes Yes Interpretation Wildlife Observation Yes Yes Yes Yes Wildlife Photography Yes Yes Yes Yes Hunting Yes Yes Yes Yes Fishing No No No No III During the interim period. as additional funds and staff are allocated to the San Diego National Wildlife Refuge. compatible wildlife- dependent recreational opportunities will be opened to the public on Service lands. Based on the compatibility determinations, wildlife-dependent recreational activities (environmental education. environmental interpretation. wildlife observation, wildlife photography. and hunting) within the Vernal Pools Unit would be compatible with the purpose of the San Diego National Wildlife Refuge. There is no fishery resource within vernal pools. The Service anticipates having the funds and staff to manage wildlife-dependent uses on new land acquisitions. Interim uses. such as organized nature hikes. may be approved by the Refuge Manager on a case-by-case basis as funding and staff become available. - . ---- ;) 1/ ?'..- - '13 A conceptual map depicting potential wildlife-dependent recreational activities within the Otay-Sweetwater Unit is provided (see figure 5). The conceptual map shows potential general areas for wildlife observation and photography and environmental education and interpretation along trails and wildlife viewing areas/pullouts on existing County of San Diego roads and seasonal game bird hunting areas. Hunting would be subject to the California hunting regulations and local ordinances regarding the discharge of firearms within city limits. Fishing within Otay Lakes would continue to be under the jurisdiction of the County of San Diego and California fishing regulations. The close proximity of the Otay-Sweetwater Unit to the San Diego metropolis provides an excellent opportunity for the public to enjoy wildlife-dependent recreational. educational. and interpretive activities. Public use opportunities may include walking and equestrian trails for the purpose of wildlife observation ',' and wildlife photography. The Service will coordinate . . , .r with the County of San Diego. City of San Diego. City of _,:.\ \ Chula Vista. local community planning groups. and landowners to avoid sensitive biological and cultural resources and to be consistent with regional and subregional trail corridors. The concept for public use in the proposed South San Diego Bay Unit would be an expansion of the existing programs at the Sweetwater Marsh and Tijuana Slough National Wildlife Refuges, Public use activities may include fishing. wildlife photography. wildlife observation. environmental education and interpretation. and walking trails. The Service will continue to coordinate with the City of Chula Vista. City of Imperial Beach. and San Diego Association of Governments on the proposed Bayshore Bikeway. Public use in the Vernal Pools Unit may be limited because of the sensitive nature of the resource and the small size and general inaccessibility of the pools. However. certain vernal pools that have access may provide interpretive opportunities. Where the Vernal Pools Unit overlaps with the Otay-Sweetwater Unit. hunting opportunities may be present because of the increased land area. However. certain public uses on lands acquired by the Service would not be allowed. In order to protect sensitive wildlife areas. certain core areas within each refuge unit would not be open to the public. Activities that would result in potentially significant adverse environ- mental impacts. conflict with the primary purposes of the Refuge. or conflict with other uses of Refuge lands would not be allowed. ;2)10-- - 1/ ? Figure 5 Conceptual Wildlife- Dependent Recreational Activities for the Otay-Sweetwater Unit. San Diego National Wildlife Refuge ... Potential Wildlife Viewing Sites Potential Upland Game Bird Hunting ISeasonal) f~ ," Potential Regional Traillink.ages .;."R,,,o.1 v ~";,, ........'"," 2 3 ,<:",- .:::,,>' Rancho San Diego (1.840 ac.) Vernal Pools Unit " fk~c" Streams , o 4 , ]> . ~"I" jlJ~~' ... alt' -..""..-.-':-- Miles \1c(;IJlI\ \-tOWIl.WI "<",IIL 1'<-,11- () Iflgli"J~ 94 / """""'" f Rn~~ ~., San ~lillUt'1 \10Ulll;llIl " "?y "0 .f>"'f... .... , ..,' -~".., ."j- A.q.# . .~ .;i'':- ~~ .;.0 " \#'~ Old"1 '''+~;;'' ~o'" .... /~"" +0' "I';.,~ . " '., ~ -. ! Upper 0r8y R~!eTYOir " :(:;,~ ., ..' ,. ~, -0-__ ~C Tdt~T"'i' . vur'l'O'i!,. ..~l}-:.-:::?::: I ... \ , OUlY MowllalJl -- --'---=--==---=.-=. ='-'---'-=-=--":=-=-'--"-'-"--ou.~~'~~ .2 t/C~ -1/? While the stewardship of the ecological resources of the Otay- Sweetwater. Vernal Pools. and South San Diego Bay units is the Service's paramount goal. environmental education and interpreti\'e programs would likely be an important element of the public use program. The location and size of the Otay-Sweetwater Unit would offer excellent opportunities for self-guided interpretive walking trails. "outdoor classrooms" for area schools and colleges. and teacher , ,~, .;:<{ kh C' . '" '- ~ wor sops. ertam ~. . ,,-' :--.-' - " . areas of the proposed, ... '\~. \ '.'c "'l,.'~ South San Diego Bay ,~, _~~. Unit would be suitable \ \, \N., 1'- ' ::;, for wildlife observation. ,,'. \ 'i,", () . bird observation '>, ~. 1,1, blinds. and self- . I guided walking ", trails. Interpretive ~~ opportunities for the ~., Vernal Pools Unit may include signs. leaflets. and self-guided trails. Programs will be conducted on all Units of the Refuge to enhance public appreciation and understanding of the Refuge and its resources. Public use regulations ensure public safety. maintain the quality of the outdoor experience. and protect natural resources. General public use regulations are found in Code of Federal Regulations. Title 50. Subchapter C. Public and other uses that are not generally authorized on the Refuge may be permitted on a case-by-case basis through a Special Use Permit. provided these uses are compatible with the Refuge purposes. staff and funds are available. and environmental compliance documents are completed. Specific regulations for public use within the Otay-Sweetwater. Vernal Pools. and South San Diego Bay units may include. but would not be limited to. the following provisions: . Public entry is permitted in those areas marked by appropriate Refuge signs and maps. . Vehicles are allowed only on designated Refuge roads or trails, . Parking is prohibited in front of closed gates. . Public use is allowed between 5:00 a.m. and 10:00 p.m. No camping or overnight parking is permitted. . Possessing or discharging firearms is prohibited except during established hunting seasons in areas open to hunting by the Service. ~tj&- ~tJ<7 . Disturbing or collecting any plant or animal is prohibited except under a special permit. . No person may search for. disturb. or remove any Native American artifact or other historical object. . Directing the rays of any artificial light for the purposes of spotting. locating. or taking any animal is prohibited. except for approved management and research projects. . Entering or remaining on the Refuge while under the inl1uence of alcohol or other drugs is prohibited. . Dogs and other pets must be kept under physical control at all times. Rights-of-Ways and Easements Lands for the Refuge would be acquired subject to existing rights-of- ways and easements. The Service has an application process for granting new right-of-ways and easements across Service-owned lands. This process would also be used if holders of existing rights-of-way and easements want to expand their areas of use of Service lands: or in most cases. if they want to modity the terms and conditions of their rights of utilization or access across Service lands. New rights-of-ways and easements or modifications to existing rights- of-ways and easements must be compatible with the purpose for which the Refuge was established. Law Enforcement Enforcement of Federal laws (and State of California. County of San Diego. and cities of San Diego and Chula Vista laws as appropriate) on the Refuge would be important to safeguard visitors. protect public and private property. and conserve natural resources. Refuge staff would include law enforcement personnel. Refuge officers would work with the local police and sheriff. California Department of Fish and Game. and Border Patrol to control trespass. illegal immigration. violation of wildlife laws. and other violations. Boundaries of any lands acquired by the Service would be posted with Refuge signs at regular intervals. Boundary signs and fencing would be important tools to control illegal trespass. c2;J~ -J-/1 - e,.;- n Facilities Development and Management Facilities for field offices. maintenance and storage. education. and visitors may be needed for the Sa;' Diego Refuge. Depending on availability of buildings. new facilities may need to be built. Th~ planning and design ofvisitor facilities would be subject to a public involvement process. The costs for acquiring or building a headquarters. visitor contact facility. parking. interpretive trails. maintenance buildings. offices. and other facilities are not known at this time. Fire Management Wildfires are a great concern within the Otay-Sweetwater and Vernal Pools units. Coastal sage scrub. chaparral. Tecate cypress. and grassland habitats are subject to periodic natural and man-induced wildfires within the Otay-Sweetwater and Vernal Pools units. Unfortunately. the frequency of wildfires within the southwestern region of San Diego County. particularly in the vicinity of Otay Mountain. has increased dramatically in the last year. Wildfires are a lesser concern for the proposed South San Diego Bay Unit because of the predominance of wetland and aquatic habitats. As lands are acquired. the Service would prepare and update a fire management plan to address initial response. fire crew dispatch. wildfire suppression. cooperative agreements for firefighting support. and prescribed burning. Fire management planning would also include agreements with the California Department of Forestry and Fire Protection. Cleveland National Forest. and local fire departments and districts for fire suppression support. The Service would maintain certain existing roads and trails as fire breaks and fire roads and would evaluate needs for additional fire management facilities. Along the interface with urbanized lands. the Service would work with local fire districts and homeowners on wildfire prevention and weed abatement. Fire plays a major role in the succession and maintenance of native plant communities. such as Tecate cypress forest. coastal sage scrub. grassland. and chaparral habitats. The Service may use prescribed burning as a tool to restore wildlife habitats. reduce fuel loads. and minimize wildfIre hazards. The role and implementation of prescribed burns in resource management and fuel reduction and compliance with applicable air quality standards would also be addressed in detail in the Refuge step-down fire management plan. c2 tj4-- 52J Interagency and Public Coordination The Gtay-Sweetwater and Vernal Pool units encompass and abut lands of various ownerships and jurisdictions. These two areas include more than 400 private landowners and contain lands owned by The Environmental Trust. The Nature Conservancy. and the National Fish and Wildlife Foundation. The Vernal Pools and Gtay-Sweetwater units overlap lands under the jurisdiction of the County of San Diego. City of San Diego. City of Chula Vista. Gtay Water District. Sweetwater Authority. State of California. and Bureau of Land Management. Given the large numbers of landowners and multiple jurisdictions. interagency coordination and public outreach would be important tools in effectively managing Refuge lands within the Otay-Sweetwater and Vernal Pools units. The San Diego Refuge provides a contribution by the Service towards the implementation of the Multiple Species Conservation Program. As envisioned. a preserve network would be established within southwestern San Diego under the Multiple Species Conservation Program. An interagency cooperative agreement may be developed that provides for sharing resources and staff among agencies. funding joint and mutually beneficial projects. and coordinating restoration and monitoring projects within the Gtay-Sweetwater and Vernal Pool units and the Multiple Species Conservation Program preserve. Public lands would be included consistent with a mutually satisfactory cooperative agreement between the Service and the public agency landowner. For example. the cooperative agreement would provide the framework for natural resource agencies to maintain trails. fire roads. and fences that cross multiple land ownerships. The Service would seek partnerships with neighboring landowners to meet mutual goals and objectives whenever possible. Public outreach may include continuation of planning updates for the San Diego Refuge. . For the proposed South San Diego Bay Unit. cooperative agreements with the U.S. Navy. California State Lands Commission. San Diego Unified Port District. Western Salt Works. and other landowners to coordinate resource management may be developed. The cooperative agreements would address Refuge funding. sharing staffs. monitoring wildlife populations. and law enforcement. For example. cooperative agreements with the Port District and State Lands Commission may address enforcing boat speed limits and seasonal closures of portions of the south San Diego Bay. ) iJcL ~ 5 / Prepared by U.S. Fish and Wildlife Service 911 NE 11th Avenue Portland. Oregon 97232-4181 503-231-2231 800-662-8933 May 1997 :24-s;2. The US. Fish and Wildlife Service manages fish hatcheries and national wildlife refuges throughout the country for the continued conservation, protection, and enhancement of our fish and wildlife resources and their habitats for the continuing benefit of people. ~ - U,S. Department of the Interior Fish and Wildlife Service RFl1720 May 1997 ~ ~.'1e ~,s Jeoar~,""ent,1 ~'e !"terror strlellV pronlblts (1IScnmlnallon on me baSIS 01 race. cO'or "1a/lonal Of/girl, age, or ,'1anOlcao ,r an.... olliS feoera!J,. aS5isr!'C :r;)9,"0'l'15 and 3CIIV,rJeS Aaalf!or:aUv, olscnmma/!on Of" me baSIS of jex 1$ stJ1CaV ,m::nlbl/ed many leOeral!y asS/SleD eouca/Jon J:)rogram Of actIVity 01 me Deoar7mt!r:I~C' f:.;rr'''er''lor~aTlor: regaromg ,ne Department ollnter,'IJ's ,~or:Clscr,r"!lra!lon oolicles or If you believe you ,"ave Deen ::USCr:mmarea agams! ,n :,~IS ar'Jgram cr acflvrty Olease cantae: Director. Office for E:JlJal OOOOftL'':IIY Jepanmenr 01 :he IntenDr, Wastlmgrofl DC 20240